Buhari: Jonathan’s Sense of Patriotism Shocked Me Presidency: Details of recovered loot to be released within 48 hours
Tobi Soniyi in Abuja President Muhammadu Buhari yesterday said he was shocked when former President Goodluck Jonathan
called him to concede defeat while votes were still being collated during the 2015 presidential election. Buhari made the disclosure at the Banquet Hall of the
Presidential Villa, Abuja, when he hosted the State House press corps to lunch as part of activities marking this year’s Democracy Day. “When he made that famous
call at 4.45 pm and said ‘Good evening Mr. President, I have called to congratulate you and I concede defeat’, I was silent for quite a while because I was surprised and he said ‘Did you
hear me’,” the president said. Buhari said he was shocked because for someone who was a deputy governor, governor, vice-president and president for 16 years to concede that
easily showed Jonathan’s “great sense of patriotism”. Buhari added that a former military Head of Continued on page 6
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Soldiers Take over Tompolo’s Residence, Father Escapes Arrest Gbaramatu monarch placed under house arrest NIGER DELTA BOMBINGS Emmanuel Addeh in Yenagoa and Sylvester Idowu in Warri
TRIUMPHANT ST. SAVIOURS
Triumphant students and teachers of St. Saviours School, Ikoyi, Lagos after they won the 2016 COBIS (Council of British International Schools) Championship Cup in far away Kazakhstan for the third time by defeating 14 International schools… recently. The COBIS Games are held for students from COBIS schools across the world to compete in a variety of sporting disciplines
Tension pervaded the waterways of the oil-rich Niger Delta region yesterday, when a company of soldiers took over the palatial guesthouse of ex-Niger Delta warlord, Government Ekpemupolo, also known as Tompolo, in Gbaramatu Kingdom,
Dozens Killed, Several Injured as Biafra Day Rallies Turn Bloody
Continued on page 6
Two policemen killed, two others thrown into River Niger in Asaba Scores arrested in six states, CD, MASSOB condemn killings
Our Correspondents The South-east and Southsouth regions of the country dissolved into a state of anarchy yesterday when thousands of protesters clashed with security forces in Anambra, Imo, Enugu,
Abia, Delta, Cross River and Ebonyi States, leading to the deaths of dozens of people, including three policemen, several sustaining injuries, and the arrest of scores of
protesters in all the states where the protests took place. The protesters, who were mainly members of the Indigenous People of Biafra (IPOB) and Movement for the
Actualisation of Sovereign State of Biafra (MASSOB), had come out en masse to mark Biafra Day in memory of the former leader of the defunct Biafra Republic,
the late Chukwuemeka Odumegwu Ojukwu. Ojukwu had led the secession of the old Eastern Region and declared the region the Republic of Biafra on May
Buhari's First Year in Office Gets Approval Rating of 64%... Page 9
30, 1967. His attempt to break away from Nigeria led to the three-year Nigerian Civil War and Biafra’s defeat. In recent years, however, MASSOB and later IPOB have emerged, with its members Continued on page 8
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PAGE SIX SOLDIERS TAKE OVER TOMPOLO’S RESIDENCE, FATHER ESCAPES ARREST restricting the movement of the paramount ruler to his palace.
Owing to the invasion, the community looked like a ghost town, even as it was learnt that institutions providing essential services, including health facilities, schools and the jetty from which many businesses in the area are transacted, were deserted in order to avoid confrontation with the troops. Tompolo has repeatedly denied stoking the return of violent agitations in the region, but many believe that the exmilitant cannot extricate himself from the ongoing crisis, which has cut Nigeria’s oil exports by about 50 per cent. The growing unease in Oporoza, Gbaramatu, Tompolo’s hometown, coincided with the visit yesterday of the Chairman of the Presidential Amnesty Office, Gen. Paul Boroh (rtd), who told the embattled king, William Ogoba Oboro Gbaraun II, (Akatakpe) Agadagba, that the federal government was deeply worried about the renewed violent activities of the militants. But on the sidelines of the visit, multiple community sources told THISDAY that the 10 “suspects” picked up by the military on Saturday and paraded a day later, were workers in the guesthouse and the king’s palace who were unfortunate to be in the area at the wrong time. The Commander of the 4 Brigade, Benin, Brigadier General Farouk Yahaya, had told journalists on Sunday, while parading the suspects that the army recovered 28 detonator cords, two pistols, 196 rounds of 7.62 special ammunition, one round of nine millimetre ammunition, a live cartridge and five daggers from the suspects. Other items found in the area, he said, were 15 handheld radio sets, 18 phones, 203 SIM cards, five swimsuits, two headlamps, a laptop, two iPads and a camera. Yahaya insisted that the youths who were arrested during the operation were linked to several cases of bombing of oil and gas facilities in the region, alleging that “they were most likely the people breaching critical national assets in the region”. During a guided tour of the community, only a couple of aged women were seen peeping from their hideouts when they saw the heavily armed soldiers in the community. In Tompolo’s guesthouse,
which served as his temporary residence before he was declared wanted by the Economic and Financial Crimes Commission (EFCC), a company of soldiers numbering over 60 had taken over the white-coloured building at the time THISDAY got there. The current operation going on in the area in search of the Niger Delta Avengers, which has claimed responsibility for recent attacks on oil and gas facilities, and ostensibly to recover dangerous weapons, THISDAY gathered, was led by a captain from the 3 Battalion, Effurun Barracks of the Nigerian Army in Delta State. Once a beehive of transportrelated activities, the waterways leading from Warri, through Egwa II, the oil facility earlier bombed by the militants in Kurutie, where Tompolo’s father hails from and down to Oporoza in Gbaramatu was a ghost of its former self as many residents had reportedly fled into the bush. A number of warships, it was observed, had also been deployed in the route leading directly to the ex-militant’s home and the palace, though soldiers did not directly lay siege to the palace which was first bombed in 2009 after some soldiers were reportedly attacked by the militants at the time.
‘FG Seriously Worried’ But as the military laid siege to Gbaramatu, Gen. Boroh, true to his promise to temporarily move his office to the Niger Delta region in order to engage the leaders on how to halt the destruction of oil facilities, told the distressed monarch during the meeting that the army would not willingly inflict pain on innocent citizens. “I am from the (presidential) villa in Abuja. I am here basically on a peace mission, sent by the federal government. It’s important enough, that’s why they asked me to come. “The activities happening in this our area now is affecting the economy of the country, they are affecting our land, it’s affecting all of us and the government is very concerned about it. That’s why they sent me. “We cherish peace and unity. The presence here of the military is to create peace. They didn’t come to molest anybody. They came to ensure stability. “I also have a military background, so when an order of this nature is given, it only acts
as a deterrence to ensure that there is peace and people are not afraid of the army’s presence. “I have come so that there will be stability, not only here, but in the whole region. The soldiers are on a cordonand-search operation. They have information about some weapons. The military didn’t come to beat up people. They are searching for weapons, which shouldn’t be in the hands of some people. “I have seen the documentation. They are not here to molest anybody,” Boroh explained to the traditional ruler while also querying why there was a resurgence of militancy in Gbaramatu. Before the traditional ruler and the amnesty boss went into a private meeting, Boroh, who had listened to his complaints, assured him that President Muhammadu Buhari was committed to restoring peace to the region and ensuring rapid development. “The good thing is that His Royal Highness is committed. These are the things that the government wants to hear to encourage it. (They want to know) that the kingdom is not an enemy to the government and that it supports the government and is able to key into governments programmes and policies. “The government’s commitment to the Niger Delta is enduring. In a few days' time, on Thursday, to be precise, the president will be in Ogoniland to flag off the clean-up of the entire Niger Delta, starting from Ogoni. “When they finish in Rivers State, they will come to Bayelsa, Delta, Edo and Ondo States. The president has good intentions for our people. “You have to key in and deliberately show that truly you support development. This thing is affecting development. People who want to come and invest cannot even come in,” Boroh stressed. He also conveyed the concerns of the federal government over the onslaught on oil facilities, noting that the country was unhappy about the events of recent months.
moved out of the palace for days. “I am in pain as the king and father of this kingdom. We have not been sleeping. This is the third time the military has invaded this community. “The third time, they came in the midnight with bundles of soldiers to invade the community, beat up and harass the people. Some women are still looking for their children as we speak. “I was sitting here and I saw how the military men have been parading my children – tied them like animals and beat them up. In fact, I was touched. “It’s just now that you came that the soldiers allowed us to switch on our light. I can’t even move out of this place. I am under house arrest. I can’t even walk to my injured chief to see him. “All the chiefs in this community have run away. There’s no single chief in this place. I am lonely here. Before now, we were in pain, but this latest one has topped it. “If you want to beat up a child, you look at the father’s face. In my presence, they were beating up my children. They have taken over my kingdom, shooting everywhere. “I have called them, but they won’t even come. I have been working with the government, but I don’t know why the government is treating me this way. “You don’t have to judge a whole clan by sitting in Abuja or Lagos. Come down and see, but they are judging us from Abuja and Lagos. They continue to embarrass us,” the monarch said. He added that he was afraid and felt threatened: “I don’t know where my people are. They have looted the guesthouse. They have invaded everywhere and barricaded everywhere. I am not safe.” He pleaded with the government to come to his rescue, insisting that the people of Gbaramatu were not members of the Niger Delta Avengers. “We are not avengers, we are not militants, and we are not part of them. The government shouldn’t push us away,” he said.
Monarch: I’m under Suspects are Palace House Arrest Workers Responding, the traditional ruler of Gbaramatu said that he was under house arrest and had neither taken his bath nor
But just as the battle rages for the soul of the Niger Delta, some eyewitnesses who saw the arrest of the 10 “suspects”,
have revealed that just like the five Chevron contract workers who were found innocent and released, those who were picked up last Saturday were just workers in the area. A community source, who identified himself as Nadi Mogbeyi, told THISDAY that though they were against any criminality in the area, the socalled suspects were residents struggling to make ends meet in the community. “They caught so many people. I was in hiding, watching them as they were picking people up. They arrested one Moses Andrew, a mechanic that was invited from Warri to come and fix a Dana vehicle here; one cook, called Philip, he is a cook in the guesthouse; he was tortured from morning. They were forcing him to confess what he doesn’t know. “They tied them with just his underwear on. I heard them shouting ‘I don die’. They went into the shrine, came out and took them away in some boats. “The mechanic we brought to fix the car because of the construction work going on here, he came on Friday evening. He didn’t know what happened. They invaded the place and picked him up. “Our generating set went off because the diesel was exhausted. They took the mechanic to the plant that supplies light to the palace. They forced him to switch on the plant and then tied him back when he finished before taking him away. “They also arrested Orumina Odiki, a security man in the guesthouse, then Ebierieri, who sews and designs the king’s clothes. Those were the ones I know,” he said. Also, Alpheus Okpekperere, a youth in the community, stated that the entire area was now a ghost town, following the invasion of the place by the military. “The whole place is deserted. They came around 2 am on Saturday. We haven’t taken our bath. The water suppliers have disappeared. We can’t make calls. Everybody is stranded. “Life is very difficult. We are being held hostage. We don’t have access to anything, not even water. The workers are all in the bush. Children cannot even go to school,” he told THISDAY.
Meanwhile, Tompolo’s father
narrowly escaped arrest yesterday after heavily armed soldiers invaded Kurutie community, Gbaramatu in Warri South West Local Government Area of Delta State in search of members of the Niger Delta Avengers (NDA). Security sources told THISDAY that the soldiers swooped on Kurutie also known as “Little London” in six gunboats at about 4.30 am and went straight to the residence of Tompolo’s father but did not meet him. “They came in the early hours, apparently believing he will be in bed or his son hiding there. They broke in and met an empty house. “The residents were asleep when they came, but many who were roused from sleep by the sound of gunboats scampered into the bush,” the security source disclosed. THISDAY gathered that the soldiers, who quickly cordoned off the community, embarked on a house-to-house search. A community source said he ran into the bush and watched the soldiers going from house to house in search of militants and weapons. “We know their tactics, so we ran away when they landed this morning at the jetty in the town belonging to Tompolo’s father,” he said. Tompolo has repeatedly denied having any links with the Niger Delta Avengers. However, the uptick of attacks on the oil and gas facilities have been linked to his travails with the authorities and his prosecution for corruption and money laundering by the EFCC. Immediately after the siege to Kurutie, it was learnt that the soldiers also invaded other Ijaw communities, including Benikrukru, Kokodiagbene, and Okerenkoko, all in Warri South West Local Government Area. Investigations revealed that the waterways were blocked while the operations lasted preventing movement in and out of Gbaramatu. The Chairman of Kokodiagbene community, Mr. Sheriff Mulade, told THISDAY on the phone that the soldiers molested and intimidated his people during the invasion of his community. Also an Ijaw leader, Chief Godspower Gbenekama, confirmed the siege to the kingdom, adding that several residents were harassed and molested by the soldiers.
announce the seizures that have been made. What he said is that the Minister of Information would make a pronouncement on the issue and this is going to happen when work resumes from Tuesday. It is likely to be out Wednesday or latest by Thursday. “The president has given authorisation that these assets that have been taken back from those who took from the treasury should be made
public. “My view is that nothing is lost. The president did not at anytime say he was going to name names. Of course we have read it in the press. The office of the president deserves all of the protection it can get,” Shehu stated. He said that there are things that could be done on behalf of the president, adding that Buhari does not have to do everything.
Tompolo’s Father Escapes Arrest
BUHARI: JONATHAN'S SENSE OF PATRIOTISM SHOCKED ME State, General Abdulsalami Abubakar, advised him to visit Jonathan to reciprocate for his “statesmanship and decision to save the Nigerian state from crisis”.
Buhari said Jonathan belonged to a party that was at the helms of affairs for 16 years and for him to have gone ahead to concede defeat “was definitely not an easy decision”. The president added that during his visit to thank Jonathan, General Abubakar again advised that in order to make for an easy transition, he (Buhari) should set up a committee to meet with the outgoing ministers to begin the process of handing over at that level. “Jonathan sincerely agreed to the suggestion and I got one of the best bureaucrats in the person of Ahmed Joda and told him to look round the country and come up with a team for the task. “However, when Jonathan told his ministers what he had decided, they simply refused and said: ‘How can you hand
over to Buhari when he has not been sworn in,’ and that was the end of that good intention,” the president recalled. The president said when he assumed office, he trimmed the number of ministries from 42 to 24, while many permanent secretaries were also dropped for one reason or the other. He however said his government was still shocked when it realised that “those below were still living in the past”, which he said led to the infamous budget padding. According to him, the budget padding saga was a nasty experience for him and many ministers who were new in government. “We had to work day and night to correct the ills and I noticed that some of them were actually losing weight,” he said. The president also spoke briefly about his inability to release the list of those who looted the nation’s treasury. “We realised that we can’t talk too much or technicalities would come in and we may not realise what we should
have realised,” he said. The president advised the reporters covering the State House to “always conduct research on those visiting him whenever they plan to ask them questions, so that when next they come, the visitors will come well prepared”. Speaking earlier, the chairman of the press corps, Kehinde Amodu, said yesterday’s event was the first time that a serving president would host the State House press corps to lunch and thanked the president for the gesture. He also said the reporters covering the president were willing to contribute their quota to his change agenda, adding that the reporters would not ask for incentives from the president so that it would not be misconstrued as asking for gratification. He however called for “improved working conditions” for reporters covering the State House. The oldest journalist covering the State House, 80-year-old Ladan Abubakar, was specially
recognised at the event. Meanwhile, the president’s media aide, Mr. Garba Shehu, also revealed yesterday that the details of returned stolen state's assets would be made public by tomorrow or Thursday. Shehu, who spoke on Channels TV, said the directive by the president was that monies with the Central Bank of Nigeria (CBN) should be disclosed. He said: “There are several accounts that have been frozen by the investigating agencies. The Office of the National Security Adviser is doing that, the EFCC, the ICPC and the police are involved. “We will expect that there would be a snapshot on the present position of the ongoing investigation and the recoveries when the disclosure is made.” He said he was surprised by the enormity of the criticism that followed the failure by the president to keep to his promise to disclose the details of the recovered loot. “The important point to make is that the president did not cancel his decision to
FirstBank Gets $13.745m Forex Allocation from CBN The latest returns on forex utilisation for FirstBank Nigeria Limited have shown that the bank was allocated $13,745,768.19 by the Central Bank of Nigeria (CBN) last week. The returns published in THISDAY yesterday showed that FirstBank sold the greenback to 678 customers. FirstBank’s biggest customers, according to the
returns dated May 19, were Dangote Cement Plc, which got $2 million for the importation of machinery for its cement plants; Gulf Treasures Limited, which purchased $1 million from the bank for the importation of gasoline; and Kam Industries Nigeria Limited, which got $1 million also. The bulk of the forex it sold was for the payment of school fees abroad.
T H I S D AY TUESDAY MAY 31, 2016
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News Editor Davidson Iriekpen Email davidson.iriekpen@thisdaylive.com, 08111813081
Fayose Dares FG to Stop Him from Foreign Trips
Olakiitan Victor in Ado Ekiti Ekiti State Governor, Mr. Ayodele Fayose, has dared the federal government to carry out the alleged plot of preventing him from travelling out of the country, saying; “Under the federal system of government, state governors are not appendages of the president and as a leading opposition figure in Nigeria, he cannot be cowed by President Muhammadu Buhari and his agents.” The governor, who reacted to reports that two governors, one from the South-west and another from the South-south had been placed on travel restriction on President Buhari’s order, in a press conference addressed by his Special Assistant on Public Communications and New Media, Lere Olayinka, said: whenever he wished to travel out of Nigeria, he will do so in the full glare of the public. “I am not surprised or disappointed by this latest plot of the Buhari’s government because the president that we know is a man without any atom of respect for the rights of Nigerians as enshrined in the 1999 Constitution of Nigeria, the Universal Declaration of Human Rights and the African Charter on Human and Peoples’ Rights and this he demonstrated as a military dictator and now demonstrating it as a democratically elected president.” The governor said he was however amazed that “this dangerous dimension of compelling a sitting governor that enjoys constitutional immunity like the president to obtain clearance from the Director General of the Department of State Service (DSS) before travelling out of Nigerian can ever be contemplated.” He said President Buhari and his agents should be mindful of the fact that under a federal system of government, the states and national government both enjoy some autonomy, with sovereign power formally divided between the national government and the states such that each state retains some degree of control over its internal affairs. Olayinka, who was flanked by the Chief Press Secretary to the Governor, Mr. Idowu Adelusi, said: “Few days ago, when Governor
Fayose was reliably informed that President Buhari had directed that he should be banned from traveling outside Nigeria, he simply took the information as mere rumour, concluding that disrespect for the constitution of Nigeria and Buhari’s dictatorship would not be extended to the most ridiculous level of preventing a governor elected just as the president from traveling out of the country. “Fayose’s thought was that even though the Buhari’s presidency was capable of even attempting to prevent those opposed to the president from breathing the air, it must still be sane enough to be conscious of the consequences of placing any Nigerian under travel ban without an order of the court, not to talk of a sitting governor who enjoys constitutional immunity like the president. “However, when we read the story titled: ‘Two governors under watch, face travel ban’ published on Sunday by two major national dailies, we have no other option than to once again alert the public on President Buhari’s new dictatorial plot to infringe on the constitutional rights of Fayose just because of his critical position on the president’s dictatorial tendencies. “The question is; if Fayose has become a threat to the security of Nigeria just because he criticises President Buhari and says the truth about his mis-governance of the country, is this not a confirmation that the president hates dissenting views? “Section 35 (1) of the 1999 Constitution (as amended) provides that; “Every person shall be entitled to his personal liberty and no person shall be deprived of such liberty,” while Section 41 (1) provides that “Every citizen of Nigeria is entitled to move freely throughout Nigeria and to reside in any part thereof, and no citizen of Nigeria shall be expelled from Nigeria or refused entry thereto or exit therefrom.” “Article 13 (1) of the Universal Declaration of Human Rights to which Nigeria is a signatory provides that ‘Everyone has the right to freedom of movement and residence within the border of each State’ while Article 13 (2) provides that ‘Everyone has the right to leave any country, including his own,
House Introduces e-Voting System Damilola Oyedele in Abuja The House of Representatives is set to adopt the electronic voting system in the conduct of its activities, in compliance with its Legislative Agenda. With the e-voting system which would be supported by internet and intranet access, Nigerians would be able to access the voting patterns of all 360 members of the House. According to a statement by Special Adviser (Media) to the Speaker, Mr. Turaki Hassan, forms have already been distributed to the members for data collation ahead of the production of the e-voting cards. The House, at the adoption of its Legislative Agenda, committed
to the use of ICT in the daily conduct of its legislative activities. “E-voting will be used regularly during voting to properly reflect voting records of bembers and parliamentary accountability. The House shall collaborate with relevant stakeholders to achieve the goal of an e-parliament,” the agenda read. The e-parliament initiative will operate on the platform of modern, up to date digital technology. Other initiatives that will be introduced, according to the legislative agenda, include the establishment and equipping of a Parliamentary Information Centre where information and documents of the National Assembly will be made available.
and return to his country,’ ditto Article 12 (2) of the African Charter on Human and Peoples’ Rights. “President Buhari and his agents should also be mindful of the fact that under a federal system of government, the states and national government both enjoy some autonomy, with sovereign power formally divided between the national government and the states such that each state retains some degree of control over its internal affairs. “Therefore, the president cannot lord himself over any state governor and President Buhari and his agents
should accept this basic reality and stop behaving as if they own Nigeria in totality. “President Buhari and his agents, especially his kinsman; Alhaji Lawal Daura of the DSS need to purge themselves of this blood of dictatorship running in their veins and be guided by the constitution of Nigeria. “Even ordinary Nigerians do not require clearance from the DSS or any security agency to travel outside Nigeria unless travel restriction is placed by an order of the court, let alone state governors who enjoy immunity just like the president
and are not under the control of the president. “The president and his agents should know that this is not 1984 when he, as a military dictator, prevented the late Chief Obafemi Awolowo from travelling outside Nigeria for medical treatment, thereby leading to his (Awolowo) untimely death in 1987! “They should also be reminded that the same way Buhari humiliated the late Ooni of Ife, Oba Okunade Sijuwade; late Emir of Kano Alhaji Ado Bayero and late Obi of Onitsha, Ofala Akulalia Alphonsus Ogugua, in
1984 by seizing their passports and restricting them to their palaces just because they travelled to Israel for business, he cannot restrict state governors from travelling outside Nigeria under whatever guise. “I therefore wish to state on behalf of Governor Ayodele Fayose that as an opposition figure, he cannot be cowed by this pettiness from the presidency. Fayose, by this press conference is daring President Buhari and his anti-democratic agents to carry out this evil and shameful plot and let us all see how far it will take them.“
SPEARHEADING INVESTMENTDRIVE
French Ambassador for International Investment and CEO of Business France, Mrs. Muriel Penicaurd; Chairman of UBA Plc and founder, Tony Elumelu Foundation,Mr.TonyElumelu;ChairmanoftheSenateInter-parliamentaryCommitteeonFrance-WestAfrica, Senator CharlesRevet;FrenchAmbassador to Nigeria, Mr. Denye Gauer, at the French Senate, Palais Du Luxembourg, where Elumelu was guest speaker at the ‘Colloque Nigeria’, the leading African economicforuminParis...recently
Buhari’s FirstYear in Office Gets Approval Rating of 64% Approves commission on ease of doing business Iyobosa Uwugiaren and Tobi Soniyi in Abuja The public opinion poll conducted by NOIPolls Limited in a series of monthly presidential approval ratings to appraise the job performance of President Muhammadu Buhari since assuming office on May 29, 2015, has revealed that the president got an average job approval rating of 64 per cent. However, Buhari was rated very low on job creation at 14 per cent, and handling of the economy at 21 per cent. The rating came as the president yesterday approved the formation of a presidential commission on the ease of doing business in Nigeria. In the report released yesterday, NOIPolls said Buhari had the highest rating of 80 per cent in October 2015, and lowest rating of 42 per cent in April 2016. “Interestingly, compared to one year ago, 44 per cent of Nigerians believe the country is currently moving in the right direction, while 37 per cent believe it’s moving in the wrong direction, leaving only 19 per cent who believe the country is neither moving in the right nor wrong direction,” NOIPolls said in its report released yesterday.
“Furthermore, in terms of specific indicators, Nigerians rated the president’s performance on corruption at 55 per cent, national security, 47 per cent as average, while he was rated very poorly on job creation, 14 per cent and handling of the economy, 21 per cent.’’ According to the poll, when asked of the most important issue Buhari’s administration should focus its attention on in the remaining three years of his tenure, Nigerians were said to have identified unemployment, 21 per cent; power, 17 per cent; and the economy, 16 per cent as the top priority areas. The group said further analysis of the president’s approval rating based on geo-political zones indicated that the North-west and North-east geopolitical zones with 81 per cent each, had the highest proportion of respondents who approved of the president’s job performance, while the South-south and South-east zones with 35 per cent each accounted for the highest proportion of respondents who disapproved of the president’s performance. The organisation added: “Interestingly, the average approval of 64 per cent cuts across all age groups, although it appears more male than female respondents, 67
per cent versus 60 per cent seemed to approve of his performance. NOIPolls prides itself as the number one country specific polling services in West Africa, conducting periodic opinion polls and studies on various socio-economic and political issues in Nigeria. Meanwhile, President Buhari has approved the formation of a presidential commission on the ease of doing business in the country. A statement issued in Abuja by the Senior Special Assistant to the the Vice President, Mr. Laolu Akande, said his boss, Prof. Yemi Osinbajo, announced this while presiding over the first quarterly consultation between the presidency and the Manufacturers Association of Nigeria (MAN) last Friday. “Buhari has approved a highpowered commission to work on the issues around the ease of doing business in the country,” he added. Akande said the commission would have a secretariat to be headed by a private sector professional who would be appointed to lead the secretariat of the commission. He said MAN raised among many concerns, their worries about cases of multiple taxation, and in response, the vice president promised to followup on the matter,
adding that “one of the key issues the presidential commission which I am heading would be looking at is the case of multiple taxation.” He said the Ministry of Trade and Investment was also actively engaged with same issued. At the end of the meeting, the President of the Manufacturers Association of Nigeria (MAN), Dr. Frank Udemba Jacobs, expressed concern about the acts of vandalism on oil and gas installations describing it as economic sabotage. Jacobs said the association was happy about what the federal government was doing, adding: “We are concerned about what is happening in the Niger Delta area which is a kind of sabotaging the economic activities of the government, and therefore, we want to call on them to lay down their arms in the interest of the country.” He called on the militants to join hands with government and move the country forward. The MAN president stated that diversification of the economy was the best way to go now given what is happening internationally. Jacobs said the association “is keying into government policy in terms of diversification of the economy by doing their best to increase the capacity of production.
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FG Constitutes Committee to Recover AMCON Loans Tobi Soniyi in Abuja A Presidential Inter-Agency Committee on recovery of loans granted to commercial banks and corporate organisations by
Asset Management Corporation of Nigeria (AMCON) has been set up by the federal government. This was revealed in a statement made available to the media yesterday by Mr. Salihu Othman
Rewane Questions Rise in Militancy after Buhari Stepped up Anti-graft War An economic analyst, Bismarck Rewane, is bothered by the resurgence of militancy in the Niger Delta region, wondering why the attacks on oil installations started after the current administration “stepped up its anti-graft war.” Speaking on a special edition of Politics Today, a programme on Channels Television, Rewane encouraged the government to focus more on intelligence gathering because the attacks could be a “massive conspiracy.” “Who are the avengers and what are they avenging? The Niger Delta struggle was about self determination, resource control, about environmental pollution, all the way from Isaac Boro to Ken Saro Wiwa,” he said. “The destruction of assets at this time happen to coincide with the step up on the anti-corruption war. Is there a link between the anti-graft war and the militancy? What is this all about? There’s a riddle that needs to be unravelled.” According to The Cable, Rewane said the attacks have been more disturbing because oil installations where Nigeria generates huge revenues have been the main targets.He said the disruption in oil production is capable of affecting the economic programmes of the President Muhammadu Buhari-led government. “The reality is that the disruption of oil production and its impact on our fiscal revenue and our foreign exchange resources, on our exchange rate, and our external reserves is
profound. Really huge!” he said. “Now, what is more disturbing is that oil assets that have been disrupted are those where Nigeria gets it highest revenue, so the impact on the fiscal revenue of Nigeria is beyond comprehension. “One asks the question: ‘Who are these people, and what do they want?’ Is this a proxy war for the politically disgruntled? Because this is a very elaborate attack, they go deep into the water, and they are well sophisticated. These are not people who are talking about amnesty. “So, we need to talk about intelligence. There could be a massive conspiracy. This is crunch time for Nigeria. The last thing we need now as a bullet in our head is a drop in production.” Analysing the different reactions that trailed the increase in the pump price of petrol under the previous and the present administrations, Rewane said while former President Goodluck Jonathan had “trust and fiscal deficits”, his successor had “a trust surplus and a fiscal deficit”. Rewane explained that labour unions could not organise a successful strike under Buhari because of “trust surplus”, but advised the president to work on “fiscal deficit”. “The reason why this time the strike on petroleum failed was because the president has what is called a trust surplus, but has a fiscal deficit. The combination of both made sure that everything failed,” he said.
New Maize Disease Surfaces in S’West, Threatens Food Sufficiency Ademola Babalola in Ibadan At a time when tomato scarcity has continued to rage due to a pest called Tuta absoluta a new disease has been uncovered in the South-west geopolitical zone of the country. This time, it is a maize disease, according to the Institute of Agricultural Research and Training (IAR&T), Moor Plantation, Ibadan. The IAR&T which is the zonal coordinating research institute in the South-west in a statement issued by its Head of Public Relations Unit, Mr. Adeniyi Amusat, declared that an uncommon pest/disease is presently ravaging maize on the field in the South-west agroecological zone of Nigeria which may likely lead to scarcity of maize in the region. The disease, according to THISDAY findings, has rendered many hectares of maize plantations this year malnourished and in some instances, stunted and yellowish, without maize buds for eventual harvest. And many farmers are ruing the development, describing it
“as an unprecedented phenomenon in recent years.” But the institute, while calling on all stakeholders to aggressively address the looming danger maintained that if not checked there may be scarcity/shortage of maize as experienced with tomato recently. The statement noted that the new discovery portends serious danger for production and consumption of maize in the nation as it forms larger percentage of llivestock feeds formulation especially in poultry. It however assured that IAR&T which is the institute saddled with maize production mandate in the region is already setting machinery in motion to control the menace. The statement read: “This is to inform members of the public that an uncommon pest/ disease is presently ravaging maize on the field in the South-west agro-ecological zone of Nigeria. Consequently, if not checked there may be scarcity/shortage of maize as experienced with tomato recently.”
Isah, spokesman of the Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami. The committee, which would be led by the minister was inaugurated on May 19, 2016 in Abuja. The statement said AMCON was established by the Act of the National Assembly to prevent the collapse of the Nigerian banking sector following the banking crisis as a result of the Bank Consolidation Reforms in 2008. According to him, the AGF pointed out that the above situation led to huge indebtedness of banks which culminated in the eventual purchase of the toxic loans by AMCON in order to stabilize the banking sector, and by extension the Nigerian economy. However, the debtors who cut across the aviation, banking and oil and gas sectors failed to repay the loans while some of them had resorted to court actions all in their bid to frustrate the loan recovery
efforts of AMCON, stating that in some cases, this was with active conspiracy of some financial institutions among others. Malami explained that this resulted to Mr. President’s gracious approval and directive for the establishment of an interagency committee by President Muhammadu Buhari to effectively pursue the loan recovery. Among the terms of reference of the committee are to ascertain the current status of AMCON recoveries in terms of achievement from inception to date as well as the total outstanding viz value of assets; and to ascertain how government at various levels can be made to honour their debt obligations to the Corporation. It is also to request and obtain information from any person or persons and/or entity or entities onshore and offshore with the full support and weight of the federal government and her agencies towards the pursuit and realisation of the committee’s
mandate; as well as to assist in third party investigation outside AMCON office relating to obligors and identify the criminal nature of commercial transactions that would assist in pursuing criminal prosecutions. In addition, the committee would ascertain how government agencies can collaborate to support AMCON’s recovery effort in; (a) ensuring payments due to Obligors are made to AMCON, (b) the possibility of going into a Joint Venture Agreement with AMCON (c) the acquisition of forfeited assets from AMCON and (d) take-over of recalcitrant businesses/companies where feasible. It is also expected to establish the working framework for the committee such that AMCON could have direct contact with the agencies for assistance and report be made to the committee on achievement and challenges as well as to design and come up with workable strategies to pursue aggressive recovery of
the AMCON loans. Members of the committee include representatives drawn from the following Ministries, Departments and Agencies (MDAs) are Mr. Abubakar Malami, Attorney General of the Federation and Minister of Justice, Federal Ministry of Justice as Chairman, Senator Hadi Sirika, HMinister of State (Aviation), Inspector General of Police, Mr. Solomon Arase and Mr. Ibrahim Magu, Chairman, Economic and Financial Crime Commission (EFCC). Others are the Alhaji Ahmed Idris, Accountant General of the Federation, Dr. Ibe Kachukwu, Group Managing Director Nigerian National Petroleum Corporation (NNPC), Dr. Abraham Nwankwo, Director General, Debt Management Office (DMO), Mr. Farouk Ahmed, Executive Secretary, Petroleum Products Pricing and Regulatory Agency (PPPRA) and Alhaji Ahmed Kuru, managing director, AMCON.
GOODTO SEE YOU ALLTOGETHER
R-L: President Muhammadu Buhari; Speaker, House of Representatives, Hon. Yakubu Dogara; former Vice President, Alhaji Atiku Abubakar; former Governor of Lagos State, Senator Bola Tinubu; and National Chairman, All Progressives Congress (APC), Chief John Odigie-Oyegun, at the presidential dinnerinhonouroftheNationalAssemblymembersatthePresidentialVillainLagos...yesterday SundayAghaeze
Fresh Moves to Resuscitate PIB Begin Tobi Soniyi in Abuja The House of Representatives and the Nigerian Law Reform Commission are initiating fresh moves to resuscitate the debate on the botched Petroleum Industry Bill (PIB). The debate will draw lessons from the failure of the attempts by both the administration of President Goodluck Jonathan and the 7th National Assembly to ensure the successful passage of Petroleum Industry Bill. Addressing journalists in Abuja yesterday, Technical Assistant on Petroleum Industry Reform to the House of Representatives, Mr. Oracle Nwala, said the House of Representatives would organise a national summit on petroleum industry reform to ensure “the passage of appropriate legal framework for the management and development of the petroleum industry of Nigeria.” He said the event which is to hold at the International Conference Centre between June 12 and 15 was part of the moves by the House
to revisit the process of petroleum industry reform rather than lament over the failure of the PIB. Noting that work had already commenced on the new PIB, he said: “The House of Representatives, rather than whinge, whine and whimper, has decided to be proactive, to revisit the process of petroleum industry reform, and to work towards the successful enactment of laws that will regulate the Nigerian petroleum industry, in accordance with the rule of law, good governance, and due process; for the sustainable development of Nigerians and the total advancement of the Federal Republic of Nigeria. “It is the conviction of the House of Representatives and its leadership that the reform of the petroleum industry is a vital necessity, if Nigeria is to realise its God-given potential. For a country that depends on revenues from petroleum industry, there is no alternative to reform. “In keeping with the commitment of the House of Representatives to pass a robust
legislation that will cater to the topical issues in the Nigerian Petroleum industry with a view to promoting global best practice, the House of Representatives has initiated work on a new PIB.” He expressed regret that the nation did not take full advantage of the enormous petroleum Nigeria was blessed. He said Nigeria oil industry comprising both the upstream and downstream sectors were currently operating under a practically no-existent legal framework. He said the legal system on the oil industry was “outdated, anachronistic, and out-of-sync with international best practices.” He said some of the current the primary laws being the Petroleum Act of 1969, and the Petroleum Profits Tax Act 1958 were no longer in sync with technological advances for decades. He added: “Legal reform, which is the bedrock of meaningful restructuring of the industry, is thus a dire necessity.
“Unfortunately, it has not happened, even though activities towards reform have been taking place since 2000. “For reasons which will be made apparent in the course of this Summit, these activities have ended up in failure, evidenced by the non-enactment of either the Petroleum Industry Bills of 2008 and 2012, which were before the 6th and 7th National Assemblies respectively. “In the meantime, the situation in the petroleum industry and Nigeria’s sustainable development, have progressively worsened. “Over the years, Nigeria has performed much worse than sub-Saharan Africa as a whole and much worse than other regions of the developing world, in terms of human development indicators, to the extent that it is regarded as a foster child for ‘how not to run a petroleum industry’ and is seen as synonymous with what is known as ‘the resource curse’. While some other countries have benefitted from their petroleum resources, Nigeria has not.”
TUESDAY MAY 31, 2016 • T H I S D AY
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NEWS
Recovered Loot: SERAP Commences Contempt Suit against FG, Others Davidson Iriekpen A civil society organisation, Socio-Economic Rights and Accountability Project (SERAP), has commenced contempt proceedings against the federal government, Mr. Abubakar Malami (SAN), Attorney-General of the Federation and Minister of Justice, and Alhaji Ahmed Idris Accountant-General of the Federation “for failing to comply with the judgment ordering publication of the spending of recovered stolen funds since Nigeria returned to democracy in 1999.”
The form 48 contempt suit was filed at the Federal High Court in Lagos last week by SERAP’s Executive Director, Adetokunbo Mumuni, “following the service on Malami and Idris of the certified true copy of the judgment of March 24, 2016, by Justice Muhammed Idris.” Form 48 which is the notice of consequence of disobedience of court orders reads in part: “Unless you obey the orders of the court contained on the reverse side of this process, you shall be deemed to have disobeyed the orders of the court and shall be liable to be committed to prison
Suspected Cultists Kill Six in Rivers Community Ernest Chinwo in Port Harcourt Gunmen suspected to be cultists on reprisal have allegedly killed six persons in Ibaa community, Emohua Local Government Area of Rivers State. THISDAY gathered that in the early hours of last Sunday, some gunmen alleged to be members of Greenlanders cult group, visited Ibaa community and allegedly killed six people; Prince Nyenke, Dirinna, Kpomasiruchi, ThankGod Obisike and two others. The gunmen were said to have invaded the community in reprisal against its rival cult group, the Icelanders. A community source, who would not wish to be named, said the gunmen laid siege to the community and operated freely without interruption for hours. The source said the gunmen were moving from house to house in search of the members of the Icelanders. It also said the Greenlanders had chased the Icelanders out of their camp in the community and taken over the place. Meanwhile, the Caretaker
Chairman of Emohua Local Government Area, Mr. John Wokoma, who visited the affected people, described the situation as pathetic. Addressing the displaced people of Ibaa community at Rumuji junction, Wokoma urged the sacked people to go back to the community. He said the council would provide adequate security for the people of the displaced community. Wokoma vowed that he would do everything at his reach to ensure protection of lives and property of the people of the area. The state Police Public Relations Officer (PPRO), Ahmad Muhammad (DSP), confirmed that it was a cult clash for supremacy. Muhammad noted that three casualties were recorded, but disclosed that peace has returned in the area. “It was a supremacy clash between Deygbam and Islander cult groups which left three fatal casualties. Normalcy has since been restored due to police intervention,” he said.
FG: We’ll Make Nigerians Buy Made-in-Nigeria Products The federal government has said it intends to make Nigerians look inwards by buying products, especially vehicles made in the country. The Minister of Science and Technology, Dr. Ogbonnaya Onu, said this yesterday when he featured on the News Agency of Nigeria (NAN) Forum in Abuja. Onu explained that it was the only way to make Nigeria a producer country and to encourage local manufacturers to produce and grow the economy. “We already have made-inNigeria car. “We want to champion the idea of Nigerians looking inward and thinking Nigeria promoting madein-Nigeria products to encourage our own local manufacturers. “It is very important. That is the only way that we can ever become a producer nation. “We cannot continue to be a consumer nation alone; it wouldn’t help us. “We must help our own local producers. “We must all start thinking of how we can do so.
“It shouldn’t be only the automobiles; it should be on all products,” he stated. The minister assured Nigerians that the government would ensure that vehicle manufacturers in the country maintained the maximum standard obtainable anywhere in the world. Onu, however, said the time for the proposed launching of a made-in-Nigeria satellite, earlier planned for 2018, might be extended due to logistic issues. According to him, space science and technology is a huge asset that a country such as Nigeria should take advantage of. “Space science and technology has direct impact on agriculture, environment, and health. “Satellite can help you in education regarding distance learning; also in defence. “If you have the right satellite to monitor what is happening in areas where there is insurgency, you can now go exactly there and get what you want. “It is very important to our economy; we just have to ensure that we are not excluded from that,“ he said.
for contempt.” Mumuni said despite the service of the certified true copy of the judgment on both the AGF and the Accountant-General of the Federation, they have failed to acknowledge the judgment let alone obey it. He noted that it was unacceptable to take the court, which is the guardian of justice in this country, for a ride. “A democratic state based on the rule of law cannot exist or function, if the government ignores and/or fails to abide by Court orders,” he said. The 69-page judgment in suit no: FHC/IKJ/CS/248/2011 signed by Justice Mohammed Idris read in part: “Transparency in the decision making process and access to information upon which decisions have been made can enhance accountability. “Obedience to the rule of law by all citizens but more particularly those who publicly
took oath of office to protect and preserve the constitution is a desideratum to good governance and respect for the rule of law. In a constitutional democracy like ours, this is meant to be the norm. “In respect of the SERAP reliefs on recovered stolen funds since return of democracy in 1999, the government had kept mute. Let me say that they have no such power under the law. “There is public interest in public authorities and high-profile individuals being accountable for the quality of their decision making. Ensuring that decisions have been made on the basis of quality legal advice is part of accountability. “I am of the view and do hold that the action should succeed in whole. Documents relating to the receipt or expenditure on recovered stolen funds since return of democracy in 1999 constitute part of the information which a public institution and authority is
obligated to publish, disseminate and make available to members of the public. The government has no legally justifiable reason for refusing to provide SERAP with the information requested, and therefore, this court ought to compel the government to comply with the Freedom of Information (FoI) Act, as the government is not above the law. “Judgment is hereby entered in favour of SERAP against the federal government,” Mumuni noted. It would be recalled that SERAP had on March 28, 2016, sent a copy of the certified true copy of the judgment to Malami and Idris, urging them to use their “good offices and leadership to ensure and facilitate fully, effective and timely enforcement and implementation of the judgment.” SERAP letter read in part: “Given the relative newness of the Buhari government, the effective
enforcement and implementation of the judgment will invariably involve setting up a mechanism by the government to invite the leadership and high-ranking officials of the governments of former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, and former President Goodluck Jonathan, to explain, clarify and provide evidence on the amounts of stolen funds recovered by their respective governments (from abroad and within Nigeria), and the projects (including their locations) on which the funds were spent. “SERAP therefore believes that the swift enforcement and implementation of this landmark judgment by the government of President Buhari will be litmus test for the president’s oft-repeated commitments to transparency, accountability and the fight against corruption, and for the effectiveness of the FoI Act in general.”
POWER SECTOR MOGUL
L-R: Director, Eko DISCO, Ernest Oji; Chairman, BEDC, Victor Osibodu; President, Manufacturers Association of Nigeria (MAN), Dr. Frank Udemba Jacobs; ActingDirectorGeneral,BureauofPublicEnterprises(BPE),VincentAkpotaire;Chairman,IbadanDISCO,Mr.TundeAyeni;andManagingDirector,4Power Consirtium,Mr.MatthewEderbie,afteraninteractivemeetingofDISCOOwnersAssociationinAbuja...weekend.
Family Raises the Alarm over Failing Health of Jonathan’s Aide Iyobosa Uwugiaren in Abuja The family of former President, Dr. Goodluck Jonathan’s aide, Dr. Waripamowei Dudafa, yesterday raised the alarm over the failing health of their son. The former presidential aide is currently being detained in the Economic and Financial Crimes Commission’s (EFCC) cell. The family also alleged that the anti-graft agency had denied Dudafa access to proper medical attention. Speaking for the first time since the arrest of the former Special Assistant on Domestic Matters, to Jonathan in April this year, the spokesman for the family, Mr. Thomas Akpoebi, alleged that family members and the personal physician of the detained Bayelsa State-born politician had been prevented
from seeing him since he was arrested. He said Dudafa’s health began to deteriorate about two weeks ago, just as he debunked a national daily’s report that the EFCC had released him. ‘’We the members of the Dudafa family are frightened at the level of deliberate neglect and abandonment of Dudafa since his incarceration about 50 days ago.” ‘’This is the first time we are constrained to say something to the world since the arrest and detention of our brother; and this is deliberate in order for the law to take its full circle, despite the media trial that has been orchestrated against him. ‘’We are particularly disturbed that the EFCC told a national daily last week that Dudafa had been released. This is far from the truth and an attempt
to mislead the public in order to endanger our brother’s life in their custody. This is a despotic way of fighting corruption,’’ the spokesman said. The family added that in the last 12 days, Dudafa had suffered series of health issues that require medical attention, saying he had been managing a spinal cord challenge, which had relapsed significantly in the last three days. ‘’He has had incessant cough and cold with visible signs of malaria and has lost appetite completely. This is worrisome because it is a life-threatening illness. And no member of his family has since been allowed to take his drugs to him, let alone takes his personal physician to him to carry out the necessary checks on him.” ‘’All the EFCC has done is to buy paracetamol and novalgin tablets for him.
This is unacceptable and very despotic on the part of the anti-graft agency because no law prohibits medical care for suspects. His efforts to even reach family members to bring in his prescribed drugs have been frustrated by the EFCC. His mobile phones are all seized, while other suspects are allowed access to communicate with their families. This is just unfortunate,’’ they said. The family called on the international community to step in with regards to what they described as ‘’the ugly tendency’’ that has lately characterized the partisan, selective operations of the EFCC. ‘’We say we are worried that our brother’s health is declining and in dire need for medicals. He must not be allowed to die in custody,’’ Akpoebi said in the statement.
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INTERNATIONAL
TUESDAY MAY 31, 2016 • T H I S D AY
email:foreigndesk@thisdaylive.com
Former Chadian President, Habre, Bags Life Imprisonment for Crimes against Humanity Former Chad president, Hissene Habre, was convicted yesterday for war crimes and crimes against humanity. He was accused of ordering the killing and torture of thousands of political opponents during his eight-year rule. The verdict capped a 16-year battle by victims and rights campaigners to bring the former strongman to justice in Senegal, where he fled after being toppled in a 1990 coup in his impoverished central African nation. Habre, 73, was sentenced to life in prison by the Special African Chamber (CAE), a tribunal created in 2013 by Senegal and the African Union. He was also convicted of rape. Dressed in white robes with dark sunglasses and a head scarf covering most of his face, Habre was defiant after his conviction and sentence were announced, raising his arms and shouting to his supporters as he was led from the courtroom. Many, including some of his victims present in the courtroom, cheered in celebration.
“After years of struggle and A 1992 Chadian Truth torture, mostly by his intelligence Rights Watch in 2001 unearthed of detainees. During the trial, a many setbacks on the way to Commission accused Habre’s police, the Documentation and thousands of documents in the court handwriting expert confirmed justice, this verdict is as historic government of up to 40,000 politi- Security Directorate (DDS). abandoned DDS headquarters margin notes on one document as it was hard-won,” said U.N. cal murders as well as systematic An investigation by Human updating Habre on the status to be Habre’s. High Commissioner for Human Rights Zeid Ra’ad Al Hussein.“In a world scarred by a constant stream of atrocities, the ramifications of this verdict are global.” Habre has refused to recognize the CAE trying him in Senegal and was at times had to be forced to appear in court, delaying proceedings. The tribunal is supported by the African Union but is part of Senegal’s justice system, making it the first time in modern history that one country’s domestic courts have prosecuted the former leader of another country on rights charges. Other such cases have been tried by international tribunals. The case centered on whether Habre, who was feted at the White House in 1987 by President Ronald Reagan after expelling Libyan forces from Chad, ordered the large-scale assassination and torture of political opponents Emergency personnel escort a man who was detained after he drove his pickup truck onto the National Mall in Washington, D.C…. and ethnic rivals. yesterday
RESCUE OPERATION
Cameroun’s Inaction on Bilateral Agreement Causing Humanitarian Crisis Oreva Olakpe President Buhari recently received President Paul Biya of Cameroun on a state visit to Nigeria. The meeting appeared to be very amicable and was crowned by an affirmation of the cordial relationship between the two neighbours. President Buhari reiterated that Nigeria is an “internationally respectful and law-abiding nation.” He was referring to Nigeria’s commitment to abide to the judgement of the International Court of Justice in 2002, which ceded the Bakassi Peninsula to our neighbours in Cameron. While this meeting sounds nice and inspires warm feelings of friendship, the reality faced by the Bakassi people is full of despair, neglect and suffering. Brokered in 2006, the Green Tree Agreement is the formal treaty that settled the longstanding conflict between both nations as to the ownership of the Bakassi Peninsula, ceding the territory to Cameroon. It also provided guidelines for how the Bakassi people and their lands should be treated under the administration of Cameroun. As a result, while the Agreement gives rights to Cameroun, it also creates obligations for Cameroun towards the Bakassi people. Article 3 of the Agreement holds that Cameroun will not force the Bakassi people to change their nationality, culture, language and beliefs. It affirms they have a right to continue fishing and agriculture on the Peninsula and that their properties and customary land rights are to be protected. It also stipulates that Cameroun should not levy taxes in a discriminatory manner from the inhabitants of the zone, and that the Camerounian government is responsible for protecting the lives of the Bakassi people from harm and harassment. In reality, Article 3 has been breached in all aspects because the inhabitants of the Peninsula have not only faced harassment, discriminatory taxes, loss of the right to fish, loss of life and property, the imposition of nationality, name, and language changes, among many other things. Evidence of this breach is the forced migration of the Bakassi people away from their ancestral lands, and back to Nigeria since 2009. Thousands of Bakassi people have become displaced people as a result of Cameroun’s failure to abide to the obligations created by the Agreement. In the years following the ceding of the territory to Cameroun, there have been numerous reports of how the Bakassi people have been harassed, killed, and pushed out of their land by the Camerounian gendarmes. Over 4,000 displaced persons left the Peninsula in 2008 and another 6000 left in 2009. At the time, there was a lot of buzz on their plight. Support was given to them on arrival by the State government, NEMA, SEMA and NGOs and they were relocated to Ikang. Today, however, they still lack access to proper infrastructure, water, food, healthcare, education, security and most importantly, a means of livelihood. Another 5,300 people fled the Peninsula in 2013 to Akpabuyo, Cross River State. They have been housed in classrooms for over 2 years and their population has dwindled from 5,300 in 2013 to 3,700 this year. This level of loss of life has impacted their community greatly. As the rainy season begins, the classrooms are falling apart with leaking roofs. The voices and stories from both camps are full of sorrow and bitterness. Many children have not been able to go to school, parents have no sustainable means of livelihood and the youth lack skills to thrive economically. There is insecurity and the death
Cameroonian President, Paul Biya of several people due to stress, poverty and hunger. In the Ikang settlement and the camp in Akpabuyo, there is a real and tangible fear that if a solution is not implemented now, the future might be marred by insecurity because people have been pushed to the wall by Cameroun and ignored in Nigeria. This is a silent humanitarian crisis that can turn into a security crisis in the future. When we read the news, we only hear about the IDPs in the Northeast because that is the focal point of our discourse on displacement in Nigeria at the moment- a hot topic. The strategy and policy towards the Bakassi people is still unclear, there is debate on where and how Bakassi people should resettle as a community but we are not even talking about their existing rights on the Peninsula. The IDPs in the Northeast have land to return to when security is restored in their villages but the Bakassi people cannot return to theirs. Under international law, the principle of pacta sunt servanda holds that a treaty, based on the consent of the parties to it, is binding, and must be executed in good faith. Additionally, the interpretation of a treaty must be in accordance with the ordinary meanings of its terms, considering the object, purpose, and context of the treaty. The purpose of Article 3 of the Greentree Agreement was to safeguard the lives of the Bakassi people because though the Peninsula was ceded to Cameroun, the territory still remains their ancestral land and home, which gives them certain unalienable rights. The Agreement is not a unilateral agreement where only one party makes an offer or a promise. It is a bilateral agreement that involves two parties, each promising to do something. Mutuality is a necessity in
bilateral agreements since both parties must fulfil their promise for the contract to be fulfilled. Cameroon has not kept their side of the bargain. At this juncture, it is unwise to ignore the lack of mutualism in the enforcement of the Agreement. A follow-up committee, composed of representatives from Cameroun, Nigeria, the UN, Germany, the USA, France and the UK, was created to monitor the implementation of the Agreement but till today, nothing decisive has been done about the treatment of Bakassi people by Cameroun. Now is the time for diplomatic negotiations concerning the enforcement of the Greentree Agreement, or else, we will be faced with greater problems in the future. It is in Nigeria and Cameroun’s interest for the Bakassi people to be productive and safe in their ancestral land. It is Nigeria’s responsibility to negotiate and speak on behalf of the Bakassi people. The meeting between Nigeria and Cameroon earlier the month presented an opportunity for Nigeria to hold Cameroun to the commitments and responsibilities of the Greentree Agreement. Conditions on the Peninsula must become conducive enough for all Bakassi people to return, if they want to. Nigeria gave up the Peninsula in order to maintain peace and amicability with Cameroun and the international community, it is Camerouns turn to act in the interest of peace. For peace to reign until today, the Bakassi people have sacrificed their livelihoods, properties, comfort and homes. The Bakassi people are industrious people and they need support from all stakeholders to re-establish their lives and communities. Nigeria has a dangerous habit of waiting until an issue becomes a problem of international magnitude before taking action. Now is the time to take decisive steps to safeguard the welfare and protection of the Bakassi people, let us not wait until it is too late. •Olakpe is a doctoral researcher, International Law School of Oriental and African Studies, London
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T H I S D AY TUESDAY MAY 31, 2016
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T H I S D AY • TUESDAY, MAY 31, 2016
COMMENT
Editor, Editorial Page PETER ISHAKA Email peter.ishaka@thisdaylive.com
THE TRIAL OF SARAKI
H
Bolaji Adebiyi argues the trial of the Senate President will likely be a long drawn battle
is traducers would never have thought that it would be a long haul. When Bukola Saraki, President of the Senate, entered the dock in September last year to answer to charges of concealment of assets, the lead prosecutor reportedly told his client, the Code of Conduct Bureau, that it was a done deal that would not last for more than three months. Perhaps the prosecutors thought they had covered the field and only needed to mop up. The evidence in their possession was probably overwhelming, and as subsequent events that played out in trial would suggest, they must have reasoned that they had the balls of the chair of the Code of Conduct Tribunal. But it has been eight months now and there seems no light at the end of the tunnel as legal fireworks continue to rage at the tribunal of youth-faced Danladi Umar, whose impartiality has been called to question by Saraki at every slight opportunity. At least on one occasion there was altercation between Umar and Ajibola Oloyede, one of Saraki’s legal luminaries, over the propriety of the chairman, himself a corruption suspect, sitting in judgment over another accused person. Umar told Oloyede to get out of his tribunal. Oloyede refused. It took the intervention of other lawyers for temper to cool. That singular event was sufficient to get the tribunal chairman, who is also a magistrate, to step down. But he dug in and sat put. On one other occasion, sometime last month, the tribunal was detained for hours as arguments raged over the likelihood of bias of the chairman. Umar had to go through a laborious ruling, in an almost futile attempt to reassure Saraki that he would do justice without fear or favour. Perhaps tortured by conscience, Umar even made a Freudian slip, confessing that in a similar case of the Asiwaju of Lagos State, Bola Tinubu, he handled some years ago, he came under powerful influence to pervert justice. Without a doubt, Saraki has not been impressed by either the countenance or rulings of Umar that have been 99% against him. Not taking chances for granted Saraki has gone to the Court of Appeal for the review of Umar’s ruling on the challenge to his competence to adjudicate in the instant matter. The trip to the Court of Appeal is becoming routine anyway. He had been there a couple of times on the same matter, though on a slightly different issue of jurisdiction, which he lost up to the Supreme Court. So why has he gone back there? Saraki is probably telling his traducers that they have underrated his staying power and strong capacity to utilise all opportunities offered by the political and judicial systems to retain his priced office and political relevance. His first strategy
AWARE OF THE DIRE CONSEQUENCE OF THE NEGATIVE OUTCOME OF THIS TRIAL, SARAKI IS OBVIOUSLY NOT PREPARED TO GO DOWN. NO POLITICIAN OF HIS STATUS WOULD BE SO PREPARED. A CONVICTION WOULD NOT TAKE HIM TO JAIL. BUT IT WOULD EXTINGUISH HIS CONSIDERABLE POLITICAL INFLUENCE
is to slow down the trial apparently to offer him more time to explore political solutions to the trial, which in any case arose from politics rather than an altruistic effort to fight corruption. Given the political circumstances of his trial, this would not be an illegitimate strategy that his lawyers are executing with uncommon efficiency to the consternation of the prosecuting team from the bureau. But for the Administration of Criminal Justice Act 2015, Saraki would probably have stalled the trial with his constant resort to the higher courts for the review of the tribunal’s rulings. In spite of that, his legal team has adopted a painstaking legal tactic of wearing down the prosecution through severe and time consuming cross examination of prosecution witnesses. For instance, in spite of protestations of the lead prosecutor, the trial has not gone beyond the cross examination of the first prosecution witness, which at the last adjourned date was still being cross-examined on count six of the 13-count charge. Meanwhile the prosecution has three or more witnesses to call to give evidence. Although the lead prosecutor’s anxiety to speed up the trial is understandable, it nonetheless betrayed a shocking misunderstanding or neglect of the stakes for Saraki: his political life. First appointed as special assistant by President Olusegun Obasanjo in 2002, he has risen meteorically to become a two -term governor, senator and now the President of the Senate of the Federal Republic of Nigeria. The inheritor of the vast political heritage of Oloye Olusola Saraki, his father and leader of the Senate of the Second Republic, Saraki has built a vast political influence and network for himself, culminating in the critical role he played in the formation of the ruling All Progressives Congress and the emergence of President Muhammadu Buhari as the President of Nigeria. All of these are now being jeopardised by this trial. Aware of the dire consequence of the negative outcome of this trial, Saraki is obviously not prepared to go down. No politician of his status would be so prepared. A conviction would not take him to jail though. But it would extinguish his considerable political influence and damage his character, which he needs on the business front. And conviction could prepare the ground for criminal prosecution, depending on how far his political opponent behind this trial would want to go. No wonder, therefore, his methodical resistance to the trial he insists is essentially political. No doubt he would fight this trial up to the highest court of the land for the stakes for him are indeed very high!
THE NIGERIAN ANTITRUST BILL (1)
Some of the provisions of the competition and consumer protection bill call for critical attention, writes Ikeogu Oke
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friend recently brought a document to my attention and sought my opinion of its content. Having read through the document, I found it so important that, after giving him my opinion, I sought and got his permission to share it through this medium, in the interest of the public. The document, he had explained, anticipates the creation of a commission to promote and enforce competition in the country’s business environment, and that it was the text of a “completion and consumer protection bill” currently before the Senate. Which means that, if passed into law, it will become the Nigerian version of what Americans call the “antitrust law,” referred to as the “completion law” in other English-speaking countries, and defined by Justin Bynum, writing in Investopia, as “statutes … developed … to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy.” Incidentally, this definition hints at a scenario in which the monopolistic business behemoths and cabals that operate in our country, with which the consumer is forced to deal strictly on their own terms, will have to face competition under the antitrust law in the greater interest of the consumer. Certainly, such a law will have extensive impact on the way business is done in our country, with its creation of a legal basis for dismantling monopoly and promoting free trade. We only need to look at two eras in our telecom sector – of a monopolistic NITEL and a deregulated telecom sector with the fierce competition by companies like MTN, Glo Mobile, Airtel, Etisalat, etc. – to appreciate how healthy competition in the business space can be of benefit to the economy and the consumer. Not only was access to telephone services
regarded as an elite privilege in the NITEL era, guaranteed only to the rich and government institutions. The services were poor because, being a monopolistic venture, the operators were complacent in their awareness that they faced no competition, and so the dissatisfied consumer had no alternative. In the deregulated era, we have witnessed an exponential growth in access to telephone services through the GSM system, so much so that practically any adult in our country can afford the subscription and manage the cost on their own terms. The financial dividends for the telephone companies and the country have also grown exponentially, with some of them posting annual revenues and profits in billions. Also, service in the sector is far more improved compared to the NITEL era. That such a transformation can take place without a law for ensuring competition is an indication of the greater improvement that should result from the introduction and diligent enforcement of such a law. However, some of the content of the “competition and consumer protection bill” calls for critical attention. There is, for instance, a clause that says the commission can shut down a business on suspicion that an anti-competitive act will be committed. This is comparable to punishing someone on the suspicion that the person will commit a crime. It can be exploited as a licence to punish with prejudice or out of malice or on trumped up charges and cannot be unjustified even as a pre-emptive measure. I suggest its excision from the bill. Also, there is the provision in Section 4 (5) and Section 13 subsection (b) of the bill that “the validity of the proceedings of the Commission or of a Committee appointed by it shall not be
affected by a defect in the appointment of a member of the Commission or of a Committee.” This is an amoral proposition. It raises the spectre of a commission that ab initio does not think it should come to equity with clean hands. Will the commission or any of its committees consider it right if, for instance, its decisions to sanction businesses are routinely taken by its members who have interests in rival businesses and so should not have been appointed to serve on the commission or committees on moral grounds due to such conflict of interest? I suggest the excision of this provision. Also, section 17q of the bill provides that “the Commission shall cause all imported goods to be registered for traceability whenever the need arises.” When will the need not arise for such an important task? Will there be times when it is desirable to register imported goods for traceability and when it is not? But it is apparent that, considering the volume of goods imported into our country, the huge responsibilities involved in this task will distract the commission from what should be its primary responsibility of regulating and enforcing fair completion in ways that should maximise consumer welfare, which the foremost antitrust thinker Robert Bork recommends as the main focus of antitrust laws. I suggest the excision of this provision from the bill and its replacement with one that requires the commission to request for records of imported goods from the relevant entities whenever it needs such to carry out its functions. Section 18 contains a string of clauses that propose to empower the commission to, among other roles, “prevent the circulation of goods or services which constitute a public hazard or an imminent public hazard, …cause quality tests to be conducted on consumer goods [it] deems necessary,” and “demand the production of labels
showing date and place of manufacture of goods as well as certification of compliance.” These are roles already being filled by agencies such as SON, NAFDAC and COREN. Their adoption by the commission will set the stage for jurisdictional conflict with such organisations besides resulting in wasteful duplication of responsibilities. The enforcement of standardisation, which these clauses are meant to achieve, and the promotion of competition, for which the commission will be set up, are two very important but different roles. Each should be overseen exclusively by different entities for optimum result. I suggest the excision of these provisions from the bill. Section 27 (3) says “the Commission shall, if there are grounds to believe that a violation, civil or criminal, of the provisions of this Act or regulations made pursuant to this Act, was, is being or will be committed, take any interim measures, including authorising an authorised officer to exercise powers contained in subsection (1) of the section pending the issuance of a warrant.” Simply, it will amount to prompting prejudice, illogicality and arbitrariness to make a law that imposes sanctions for offences that “will be committed,” which in this sense implies treating specific wrongdoings that are a figment of an accuser’s imagination and have yet to come into existence as if they have been committed already. I suggest the excision of this provision from the bill. Also, to forestall unduly jeopardising the interests of businesses suspected of wrongdoing, a deadline should be stipulated for dispensing with cases following the execution of any warrant that the commission or its agents may need in dealing with such businesses, considering that some of their goods or products may be perishable or have a short shelf life. Oke, a public affairs analyst, wrote from Abuja
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T H I S D AY • TUESDAY, MAY 31, 2016
EDITORIAL OF CCTV CAMERAS AND SECURITY
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Beset by scandal, the CCTV security project is yet another monument to waste
he House of Representatives’ ad hoc committee set up to investigate the abandoned Closed Circuit Television (CCTV) cameras project recently visited the switch centre at the Nigeria Police headquarters in Abuja. It was not a pleasant trip. The committee, headed by Ahmed Yerima, described the project as a “total and colossal failure”. Unfortunately, not many Nigerians were shocked by the discovery in what has long been confirmed as another big scam. The close-circuit cameras were part of the National Public Security Communications System (NPSCS) contract awarded in 2010 to a Chinese company, ZTE Corporation, at $470 million. The Chinese Exim Bank provided $399.5million loan while the federal government paid the balance of 15 per cent, amounting to $70.5 million as counterpart funding. Some 2,000 units of the CCTV cameras were supposed to be installed in Lagos and Abuja. “The purpose of the CCTV contract,” said Yerima, “was to facilitate real THE CCTV SCANDAL IS time online comYET ANOTHER CLEAR munication between EVIDENCE OF HOW security agencies CORRUPTION AND to enhance their MISMANAGEMENT ARE capacities in fighting crime.” STANDING IN THE WAY Indeed, the project OF NIGERIA’S EFFORTS was to generate TO UPGRADE ITS voice, video and INFRASTRUCTURE data, using the code division multiple access (CDMA) technology to tackle terrorism, armed robberies, kidnapping and other violent crimes that increasingly undermine our security. Sadly, it has become another monument to waste. Six years later, the installed cameras have become mere objects of decoration. Out of the 1,000 cameras in Abuja, only 40 are “online” while the other 960, in the words of one of the police officers manning the centre, “are down” and others vandalised. An
Letters to the Editor
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angry Tony Nwulu, a member of the visiting House committee said the project was “planned to fail from the beginning because from all indications, all the components didn’t do the right thing.” That the project designed to enhance national security was meant to fail is indeed an apt summation. The contract for the CCTV installation was awarded without due process and Mr. Emeka Eze, the former Director General of the Bureau of Public Procurement (BPP) confirmed this much. The contract ought to have been accompanied by the certificate of no objection issued by the BPP, which it never did. But the Nigerian Communications Satellite, better known as NigComSat, which acted as consultant of the project, blamed its eventual abandonment on government’s inability to fund the project.
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THE PDP AND THE NORTH
he Peoples Democratic Party (PDP) is making frantic efforts to reposition itself, rebrand its image and recapture its lost fortunes and supporters, but the party is facing serious power wrangling. The PDP seems to be focusing its attention on the North; it wants its national chairman and the 2019 presidential candidate to come from the region. However, the party has been met with some setbacks in its recent attempt to start the process. Certain factors are responsible for this. After losing the 2015 elections without proper analysis of the situation, the PDP hastily asked its then national chairman, Ahmed Adamu Mu’azu to resign. The PDP failed to see that its woeful performance in the north during the 2015 elections was due strongly to the unprecedented Buhari ‘Tsunami’, and the failure of the then central government to effectively tackle the Boko Haram insurgency. It is commendable of the PDP to have realised early that its resurrection must begin from the north. It was not a coincidence that Ali Modu Sheriff’s three months in office brought the PDP back to life in the north. Hate him or love him, Sheriff is one of those adventurous politicians in the north who is familiar with the nitty-gritty of the politics in the region and has connections in the south. So, for the PDP to really begin a new start, it must take advantage of some of its bigwigs in the north who have adept understanding of the nexus of Hausa-Fulani and the minority politics in the north.
he former Director General of NigComSat, Mr. Ahmed Rufai, who served as a member of the project management team set up by the government blamed the failure to provide the required “operational funds” to run the system after it was completed in 2012 for the problem. The Managing Director of ZTE, Mr. Hao Fuqiang, agrees. The required monthly operational budget for the security project as at 2012 was put at N11 billion. The figure was reviewed downwards to about N5 billion after Rufai’s exit, but funding was still not forth coming. “The situation with the project is like buying a new car and refusing to provide money to buy fuel,” said Rufai. “How will the car function?” Yet, two years from now, specifically in 2018, the country would be called upon to start paying the principal sum in the CCTV failed contract. Meanwhile, debt servicing alone is already in excess of $42 million. The CCTV scandal is yet another clear evidence of how corruption and mismanagement are standing in the way of Nigeria’s efforts to upgrade its infrastructure and other vital services. This is even more painful because it is coming at a great cost to the nation. The pertinent question: Just how long shall we allow this country to bleed uncontrollably?
Late MKO Abiola’s inroad to the north was ‘motorised’ on the basis of utilisation of the experience of individuals who understand that nexus. The PDP must bring on board people from the north to help the party to ‘come to life’ in the north. Most of the party’s fortunes in the north are lost. Thus, the party needs someone who understands how politics play out in the north. Apart from having a chairman who has such capacity, the PDP also needs its founding members who understand the fundamentals of northern politics. People like Sule Lamido who is a product of the Aminu Kano radical politics of the north. Lamido is from the core Hausa-Fulani states and has large followers. When Sheriff visited Dutse, the capital of Jigawa State on Monday, April 25, 2016, the mammoth crowd Sule Lamido attracted was a strong political statement. Furthermore, his ‘cousins’ in the northeast will have nothing against him. The middle-belt and many northern minorities share his politics of radicalism. Lamido greatest shortcoming is the corruption case hanging on his neck. But with his excellent performance as governor of Jigawa State, just some ‘little packaging’ is what he needs. The PDP’s resurgence depends on whether it recaptures its fortunes in the north and how well it takes advantage of its bigwigs from the region. However, for the PDP to make a full come back, some external factors have to play to its advantage: Zayyad I. Muhammad, Jimeta, Adamawa State
IN PRAISE OF USMAN HAMIDU MAIHA
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wo wonderful years on the saddle as the AuditorGeneral of Adamawa State Local Government, Alhaji Usman Hamidu Maiha, has proved to be a versatile auditor as well as an astute administrator who knows his onions, going by the advice he offered to the government in the preservation of the local government funds in order for the local councils to carry out meaningful development for the benefit of the people. Within two years, his positive achievements were felt by the staff of the local government audit. He started with the renovation of the headquarters with the provision of good office equipment such tables and chairs for the use of the directors. In addition, he provided them with air conditioning systems to enable them perform their functions efficiently. This has gone a long way in boosting the morale of the directors in putting in their very best. He has also made it a point of duty to have a robust relationship with them so that the desired
results can be obtained. He didn’t stop at the headquarters as he did similar things at the zonal offices in some local governments in the state. Alhaji Maiha successfully organised the conduct of verification audit of all the personnel of the entire 21 local government councils in the state. The exercise yielded positive results. Funds are prudently spent. This can be aptly seen in the offices which lack nothing in terms of equipment such as stationery and other accessories. Members of staff are retrained to acquire more knowledge. The auditor-general is assiduously working for the betterment of the administration of the last tier of government to enhance the capacity of the government nearest to the people towards the provision of the much touted dividends of democracy. With the change mantra now in the art of governance, the methods adopted by the auditor-general would no doubt curb the lack of documentation and excessive corruption associated with political class. Usman Santuraki, Jimeta,Yola, Adamawa State
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T H I S D AY • TUESDAY, MAY 31, 2016
POLITICS
Group Politics Editor Olawale Olaleye Email wale.olaleye@thisdaylive.com 08116759819 SMS ONLY
EXECUTIVE BRIEFING
Bayelsa’s Unending Workers’ Verification There is palpable anxiety in the Bayelsa State civil service as there appears to be no end to the on-going verification exercise by the state government, writes Emmanuel Addeh
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till in the thick of the storm, the Governor of Bayelsa State, Mr. Seriake Dickson, has again set up several workers’ verification committees to, according to him, help streamline the actual employees of the government. True, the state coffers have come under heavy pressure following the drastic decline in the allocation accruing from the federation account, stoking tension in the ‘civil service’ of the state as the authentication exercises continue to drag. While the government says the verification is good for the sanity of the civil service, the workers view the fresh set of verification exercises with suspicion. Government employees in the state have not been paid since this year, a development that is causing a serious face-off with the government. The workers are irked that several other verification exercises which essentially started years before now, have not led anywhere, neither have the government initiatives bettered their lots as reports of such verifications were never made public. There is also the belief among workers that the state government was using the multiple committees meant to verify their authenticity as a delay tactics to withhold their salaries. Aside the regular workers, pensioners are also not exempted as many of them have not been paid for about a year. Among the several panels, recently set up are that of the State and Local Government Pensions Boards, headed by Mrs. Jane Alek and Sir Frazer Okuoru, respectively. At the event, Dickson restated government’s commitment to completely eradicate payroll fraud in the state, and charged both boards to swing into action immediately. “I charge you all to ensure that all those, who are going to be paid are verified. You have to verify each and every one of them, interact with them, go to them if they are too weak to come, take their photographs, verify their age in particular,” he instructed. Just after that, the Bayelsa government said it had uncovered a payroll fraud at the State Universal Basic Education Board (SUBEB), with the discovery of over 765 illegally employed teachers in the eight local government areas. Of particular interest, it noted, were 50 dead persons in Ogbia Local Government Education Authority, who were still on the payroll of the government. Executive Secretary of SUBEB, Mr. Walton
Notwithstanding, Dickson has insisted that the amount being lost by the state government annually to the activities of payroll fraudsters was about N24 billion. He alleged that the fraudsters perfect their act through connivance with some financial institutions in the state
Dickson...face to face with labour
Liverpool said with the latest discovery, government would be saving over N100m monthly from the local councils alone. “In the course of our investigation, after crosschecking the 2007 nominal roll and vouchers with the recent ones, it was discovered that over 765 names have been infused,” he alleged. Not done, the government also set up a nine-member judicial commission of inquiry to investigate “fraudulent falsification of the government payroll and other accounts.” Justice Doris Adokeme was nominated the chairperson of the commission, while Mr. Victor Slaboh was chosen as secretary. The commission was given 60 days to conclude its assignment and extend its investigation into payroll fraud to the eight LG councils of the state. Dickson, while inaugurating the commission gave an eight-point term of reference to its members, with a charge on them to investigate in full, the circumstances surrounding the state’s payroll of the public servants from 2003 till date. However, dissatisfied with government’s explanation for the delay in the payment of salaries as well as the continuous verification exercises, the organised labour recently embarked on a strike to force the government to perform its obligations to the workers. In a joint meeting, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) noted that the government had refused to yield to their demands even after exhaustive deliberations. The NLC Chairman in the state, Mr. John Bipre Ndiomu, and his TUC counterpart, Tari Dounana, disclosed that the two labour centres in the state were going on a strike, following the non-payment of salaries from January till date. “Workers are directed to proceed immediately on an indefinite strike. By this development, workers are advised to stay off their places of work and remain at home as long as the strike may last,” they affirmed. Though they called off the industrial action after some days, the issues of unending verifications and unpaid salaries still remain largely unresolved. In the same vein, aggrieved local government council workers in Bayelsa State reacted angrily to the situation and rejected a proposal to pay them one month salary out of
the over 10 months’ salary arrears owed by the councils. They also threatened to lock up the eight local governments if legitimate council workers, especially those whose appointments predated the first tenure of Governor Seriake Dickson, were sacked. In a communiqué signed by the state President of NULGE, Akpos Ekiegha; Secretary of NULGE, Tonye Jaja; state Chairman of MHWUN, James Adama and the Secretary MHWUN, Arafat Letam Nwibani, the workers insisted that paying one month salary was unacceptable . “It has become very worrisome following impeccable rumours making the rounds that only one month salary will be paid to workers in spite of over 10 months’ salary arrears owed by the councils. Joint State Administrative Council-in-session states in clear terms that this is totally unacceptable as any contemplation to pay one month salary in the face of the present hardship will be resisted, knowing full well that workers are heavily indebted to banks, schools etc,” they stated. They also called for the release of FG’s bail-out fund totaling about N2.5billion for the commencement of payment of the about N5billion salary arrears as at March 2016. The unions said they had also withdrawn with immediate effect their representatives from the local government staff verification committees set up by Dickson “in view of the inconsistencies and complications arising from the terms of reference of the verification committees.” They warned that removal of legitimate local government workers, especially those employed before Dickson became governor through a phantom verification exercise would be resisted. “To this effect, the national secretariats of the two unions have been alerted for a possible shut down of the local governments in the state if government sacks legitimate workers under previous administrations. We further warn that such an infringement on the administrative autonomy of local governments is unacceptable and may result in the Imo State treatment,” they added. While condemning the prolonged staff verification exercise, the union stressed that it had brought untold hardship to council workers and resulted in avoidable deaths and sicknesses
of many workers. Notwithstanding, Dickson has insisted that the amount being lost by the state government annually to the activities of payroll fraudsters was about N24 billion. He alleged that the fraudsters perfect their act through connivance with some financial institutions in the state. He said the government set up the various staff verification teams as well as the Judicial Commission of Inquiry for the state public service and the Rural Development Authorities to clean the books and return sanity to the service. He directed heads of parastatals and extra ministerial departments as well as principals and headmasters to submit their staff nominal rolls, indicating the date of first appointment of each staff and current grade level. He also urged them to submit the staff payrolls, indicating the authentic monthly salary for each staff, within one week, stressing that non-compliance with this directive would be met with stiff disciplinary measures. “The permanent secretaries, heads of parastatals and heads of extra ministerial departments, principals and headmasters, have been strongly advised to sign the required documents personally and take responsibility for every information or data submitted in this regard. “They are expected to submit their documents to the office of the Head of Service of the State, with principals to submit same to the Chairman of the Post Primary Schools Board, while headmasters are directed to submit same to the Executive Secretary of the State Universal Basic Education Board (SUBEB).” According to him, to resolve the lingering delay in the payment of salaries of civil servants, labour should be prepared to collaborate with the government in its current efforts at sanitising the system. Dickson said the intention of the government was to establish a workable system that will stand the test of time, adding that, if properly handled, it will put the issue of payroll and other fraudulent practices associated with the civil service at the State and Local Government levels to a final rest. The governor maintained that only workers, who have completed the registration of their Bank Verification Number, would receive their salaries. “Those people in the civil service, who are used to adding names to the payroll at the local government level, teaching service, parastatals and in the main civil service must stop. There is simply no money to service their criminality and greed. They have done it for all these years. Now, we are saying enough is enough. “We want a situation where after the verification, genuine civil servants will be paid even if it is N2bn that we get in a month. Those who have done their verification and produced their BVN will have their salaries,” he said. Ndiomu, the NLC chair, noted that the issue of the local government was a glaring one. “You are all aware of the N1.285bn bailout fund for local governments. The controversy there is that government is saying they will verify before they will pay, but labour is saying, ‘no, pay them even if it is some for now and later the other ones,” he said. He said rumours doing the rounds that Dickson used the funds for election might not be true, as a lot of the speculations are baseless. On the pains the workers have been going through as a result of the twin issues of verification and unpaid salaries, the NLC chair said, “The experience is not a pleasant one. People are suffering. Yes, we are aware and that is why, as labour leaders, we are taking our time to study the situation,” he noted. NOTE: Interested readers should continue in the online edition on www.thisdaylive.com
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T H I S D AY • TUESDAY, MAY 31, 2016
ONTHEWATCH
Tambuwal’s One Year of Promises Kept It is a moment of stock-taking for most state governments. However, for the former Speaker, House of Representatives and Governor of Sokoto State, Hon Aminu Tambuwal, he is walking the talk. Shola Oyeyipo writes
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s usual, the covenant between the electorate and those seeking political offices is often defined by those promises made during the electioneering. In this clime, therefore, the citizenry begin to evaluate the success and failure of governments when it is 100 days in office, but even where some people contend that 100 days is too short 365 days is long enough to have started making noticeable impact. During the campaigns in Sokoto State, former Speaker, Hon. Aminu Tambuwal vowed to run a fair government and as governor-elect, he told his people that “As the outgoing Speaker of the House of Representatives, I understand the expectations of my immediate constituency (Sokoto) and the wider national political family in my new public service engagement.” He repeatedly promised to provide good governance in the state with utmost transparency and fairness, saying “We remain grateful for honouring us with your mandate and this is a responsibility that we do not take lightly, and we will endeavour to continue to provide good governance in Sokoto State with utmost transparency and fairness. “We make a solemn pledge to you today that this government shall be fair to one and all, and shall at all time work hard to meet the yearnings of our people for responsive and responsible governance.” An assessment of the performance of the former speaker’s administration in the last one year reveals a government striving to keep to its words in spite of the economic challenges. Evaluation of the governor’s sectoral performance indicated that Governor Tambuwal made effort to provide an atmosphere conducive for work for Sokoto State civil servants. The government provided home renovation loan to 1,000 civil servants, settled the payment of gratuities for 1,902 retirees and as a way to address the problem of unemployment, the government engaged 500 unemployed citizens into the state civil service with qualifications such as BSc, HND, NCE and OND. As part of efforts at create jobs and at the same time protect lives and property, eight additional fire service stations were created in the state with youths employment. Tambuwal therefore set aside N500 million for the Ministry for Home Affairs to acquire firefighting equipment for the fire service departments. He also approved the creation of training centres for firemen in order to enhance their productivity in the state. While the government is employing 200 female as environmental marshals, in order to keep households across the state clean and tidy, Tambuwal has always concerned himself with making Sokoto State clean, and as such, re-introduced the sanitation exercise. This has also led to the employment of more youths in the state. Knowing full well that farming is the traditional occupation of most of his people, immediately he was sworn in, Tambuwal started distributing fertiliser to farmers at subsidised rate. The gesture was extended to dry season farmers in addition to improved seeds and seedlings, pesticides and herbicides given to them at low and affordable prices as ways of boosting agricultural outputs. The government approved the purchase of 9,000 metric tons (300 trucks) of assorted fertilisers and 16,000 water pumps for distribution to dry season farmers at the cost of N1.660bn for the 2016 farming season. In another development, N392 million has been approved to purchase Faro Rice Seeds to be distributed to farmers across the state. Tacitly, Tambuwal ties his projects to industrialising the state while at the same time creating jobs for the teeming unemployed youths to curb restiveness. He plans to set up a fertiliser plant in the state with a production capacity of 100,000 metric tons of fertiliser and create 5000 job opportunities. The project is already in top gear.
Tambuwal...one year gone
In line with the pledged he made during the campaigns that he would appropriately and justifiably ensure that youths are well catered for, the government is set to train 25,000 youths through skills acquisition scheme within two years so as to make them self-reliant. He also partnered ERISCO, a tomato company to create employments to youths and good people of Sokoto State and also boost the economy of the state. He has also partnered an Italian company through United National Industrial Development Organisation to establish a cluster, which will help boost the leather works for which the state is renowned. In the area of education, which is key to sustainable development, Governor Tambuwal has set aside 29 per cent of the 2016 budget for education. He introduced levy on contractors and other governmental partners in funding education, especially to train and re-train teachers, cater for teachers’ welfare, school welfare as
Indeed, it has been an eventful 365 days in the saddle for Governor Tambuwal as he continues to make efforts to actualise his campaign promises to the Sokoto State electorate, who are confident that he possess the requisite experience and capacity to move the state forward
well as students’ feeding programme. He has released N903 million for payments of students tuitions fees studying abroad and for the registration fees of Sokoto State students studying in various universities across the federation. He released the sum of N20 million to Sokoto State University as grants for research and development, purchased and distributed 8,000 UTME/JAMB form to Sokoto State students seeking admission into Nigerian universities and to provide a conducive teaching atmosphere. He has pledged to build houses (teachers’ villages) across the 23 local government areas of the state. The government recently kicked off a programme to enrolled 1.2 million kids into school. As a way to curb leakages, the state government adopted the federal government’s Treasury Single Account (TSA) and when the policy took effect, over 100 redundant accounts belonging to government were discovered with the sum of N1.5 billion in such accounts. Now in the pipeline, Governor Tambuwal is concluding arrangement to establish three micro-finance banks in three senatorial zones in the state to ease access to loan by small scale medium entrepreneur (SME) to boost economic activities across the state. The banks are to be named Giginya Microfinance Bank, Fodio Microfinance Bank and Gudale Microfinance Bank respectively. In collaboration with the Bank of Industry (BOI), the state already earmarked N2 billion to give out as loans through the Sokoto Small and Medium Entrepreneurship Development Agency (SOSMEDA). To facilitate quick urbanisation, growth and development, the government has directed the completion of the all ongoing projects, inherited from the immediate past government. Also, for him, after food comes shelter because, it is the pride of every family and community life, as such, he has ensured 100 per cent completion of all housing units inherited by previous government and pledged to build additional 1, 300 houses across the 23 local government areas of the state. He has also approved the construction of some rural roads across the state which includes a 13km road linking Dabagin Ardo – Illelar Gajara – Dutsin Andi – Hetarete Sidingu – Gi’ere at the cost of over N136m. There is the construc-
tion of Arkilla – Gidan Bawan Allah – Paila junction road has been approved at the cost of over N49m. In an effort to ensure improved water supply in the metropolis, Governor Tambuwal approved the purchase of four 150KVA and 2000KVA generators at the cost of N394, 390, 420 to facilitate water reticulation. And for the comfort of state public officers, he approved the purchase of two 500KVA generators for Usman Faruk Secretariat and Shehu Kangiwa Secretariat at the cost of N65, 123, 600. The administration also focused on health care delivery to the people and no stone has been left unturned in fighting all kinds of diseases attacking the people, especially polio, Lassa fever and other forms of ailments. Medical equipment, facilities and drugs needed in hospitals and primary healthcare centres have been provided to facilitate this. He has ordered the purchase of cold chain equipment for immunisation in order to fight polio, meningitis, measles, and yellow fever among other diseases bedeviling the people of Sokoto State at the cost of N297m. The Tambuwal administration earmarked N10,000 million monthly as relief fund to some select hospitals and pharmacies in order to help the less privileged in their medical treatment across the state and in a nutshell, the government of Sokoto State spends N31, 500m every month on the less privileged in the state. Being an important aspect of the state, religious activities are encouraged and related programmes have been funded as inherited by previous administrations, some of which include the payment of N6, 500 monthly to less privileged, Zakat and Endowment Committee is now elevated to a commission, Ramadan feeding programme and provision of free medicine for less privileged among others. The state government donated N500, 000 to each of the 138 families of the 2015 hajj stampede victims from Sokoto State. Indeed, it has been an eventful 365 days in the saddle for Governor Tambuwal as he continues to make efforts to actualise his campaign promises to the Sokoto State electorate, who are confident that he possess the requisite experience and capacity to move the state forward.
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T H I S D AY • TUESDAY, MAY 31, 2016
EVENTS&REPORT
Melaye Gives Back to His Constituents Senate Committee Chairman of the Federal Capital Territory, Senator Dino Melaye, recently gave back to his people, a year after electing him to represent them at the senate. Yekini Jimoh writes
Melaye during the empowerment programme
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enator Dino Melaye, Chairman, Senate Committee on Federal Capital Territory from Ijumu Local Government Council of Kogi State recently empowered the people of his constituency in a grand style. Hundreds of people trooped out to witness the occasion, which brought both the old and the new foxes to the gathering. Melaye, who is a former member of House of Representatives some years back, believed that he needed to give back to his people that voted him as the Senator representing Kogi West Senatorial District of the state. His past record as a member of the lower chamber gingered him to do more for his people now that he is a Senator. Little wonder, the Emir of Okuta in Kwara State, recently gave him the title: ‘Jamar of Okuta.’ Stakeholders of the All Progressives Congress (APC) from the seven local government councils of Kogi West, including who is who in Nigerian politics and 26 Senators were at the occasion. Traditional rulers from all the seven local government councils also graced the occasion. Some indigenes, who spoke with THISDAY on the initiative, commended Melaye for bringing dividends of democracy to his people. Some are of the view that the Senator, who is a grassroots politician, understands the feelings of his people and as such was ready to assist the people. Over 1,000 grinding machines and a start off aid in the form of cash was also given to artisans. He donated computers to secondary schools to place the children in an advantaged position in the information technology world . Some loyalists drawn from the seven local government areas were also given 100 phones worth N100,000. Chairman of the Committee, Hon. Saidu Akawu Salihu, who was one time member of Kogi State House of Assembly representing Koton-Karfi constituency said Senator Dino was out to bring smile to the faces of his people.
According to him, Dino appreciates the people for voting him as Senator representing Kogi West, stressing that more of these will still come from the Senator. He commanded the Senator for representing them well, adding that the people of Kogi West will continue to support him so that at the end of his first tenure as Senator, he would have recorded great some achievements. Also speaking, Chairman of APC in Kogi State, Alhaji Hadi Ametuo thanked the Sena-
However, before the distribution of the empowerment items, there was a mild drama as Melaye, at the holy congregation of the Apostolic Church of Nigeria, Oke-Ayo (Iluafon), wept during the thanksgiving service, saying he was tempted to seek diabolical solutions during preparations for the 2015 general election
tor for empowering the people. He said what Melaye did by empowering his people was an indication that he appreciates the support given to him by the people of Kogi West during the last general election in the state. He urged him to continue to do more for his people, stressing that the people of Kogi West are proud of his track record in the last one year as Senator from the State. O his part, Senator Adefemi Keller representing Ekiti Central also described Senator Melaye as a wonderful young man, who has no limit in his area of jurisdiction. He said even though he is serving Kogi West senatorial district, he stretches out beyond Kogi, adding that Melaye has been very active in the service of the nation and was optimistic he would go places. Senator representing Delta Central, Obaisi Ovie Omo-Agege in his speech said Melaye has proved the essence of democratic representation. “He is in Abuja not to represent himself but his constituents and in any event that God has showered blessings on you it becomes interesting when you shower blessings on those whom you represent. We should commend him for that. ” However, before the distribution of the empowerment items, there was a mild drama as Melaye, at the holy congregation of the Apostolic Church of Nigeria, Oke-Ayo (Iluafon), wept during the thanksgiving service, saying he was tempted to seek diabolical solutions during preparations for the 2015 general election. According to him, the several temptations were to ascertain his fate at the election on the platform of the All Progressives Congress (APC). He gave thanks to God for making his victory at the election possible adding that what God has done for him in his life time will make him not to forsake Him. At the reception proper, Melaye said he was inspired to mediate or interject on their behalf for better tomorrow. According to him, “For
artisans, I want to look back in the next few years and see my people who are bricklayers, hair dressers, plumbers tailors at the peak of their professional careers. Melaye expressed the optimism that just as artisans are the well paid and recognised people in the developed world, he looks forward to when they would be well paid in Nigeria. The senator indicated that based on the injunction of the holy books to always assist the less privileged, he has been empowering his constituents since his hay days in the House of Representatives. “I want to believe that God will provide for me to even do more because it is a show of appreciation to God, who is the Supreme controller of the universe.” On his experience in the last 11 months in the upper chamber, he said he presented 18 bills out of which 3 have been moved. “I have presented the highest number of motions in the National Assembly. As at now, I have 9 motions and 3 bills. The most important thing now is how to empower my people; how they will get their share of the national cake.” He said he consulted with Dangote on the vexed issue of the Obajana/Kabba road, which has been awarded adding that the road from there to Ilorin was also captured in the budget. He said the less privileged should not be treated as lesser human beings or called less privileged. “They are marginalised, sidelined, humiliated and kept away from all sources of rights and freedom,” describing empowerment as a process and mechanism by which people, organisations and communities gain mastery over their lives. The Empowerment materials were distributed to widows from each ward of the senatorial district; primary and secondary schools children got scholarship for one year, while religious sects, council of Ulama and Christian Association of Nigeria were given brand new Toyota Haice buses. The National Association of Technician and Artisans (NATA) and Ijumu Development Union (IDU) also got buses.
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T H I S D AY • TUESDAY, MAY 31, 2016
PERSPECTIVE
Buhari: Leading in Turbulent Times President Muhammadu Buhari’s undoing is his style, which is not lockstep with the challenges of the new age, writes Magnus Onyibe
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resident Muhamadu Buhari’s face can sometimes be deadpan and inscrutable. That is not surprising. As an ex-soldier, he is supposed to be stern, so, wearing a straight face that belies no emotions and leaves no clue is not unexpected. At the inception of his administration, most things that appeared to have gone awry in the twilight of the immediate past administration started falling into place. Electricity supply ramped up from about 3,500 megawatts to about 5000 megawatts. Petrol queues that dogged the path of the previous administration up to its last day, suddenly disappeared and Nigerians even started to queue up to board buses – bringing back memories of the public order and discipline, reminiscent of the days of War Against Indiscipline, (WAI) – measures introduced during Buhari’s first coming as military head of state in December of 1983. In public and private sectors, hitherto comatose activities started moving so smoothly, that the President’s men and supporters attributed the sudden turnaround to his ‘body language’ and clear evidence that a ‘new Sherriff’ was in town. Femi Adesina, presidential adviser on media and publicity, waxed lyrical in an article he referred to Buhari as the ‘new Sherriff’ in town. Unfortunately, the embarrassing 2016 budget ‘padding’ controversy was perpetuated under the ‘Sherriff watch’ until public uproar forced him to intervene. Garba Shehu, special assistant on media to the president was also celebratory of the president as he also ecstatically in several articles extolled the virtues of his principal, praising him to high heavens over his superlative accomplishments, even when no single tangible policy that could impact positively on the citizenry had been formulated.
Nigerians believed Buhari wholeheartedly hence he was elected by about 2.5m votes more than the incumbent, Goodluck Jonathan. Now, it’s time to walk the talk. In a 21st century digitalised and globalised world of capitalism and open government, not only is there no room for one party rule, one man rule is also unacceptable… The president must realise that Nigeria’s role, politically and economically, has become more significant globally
Buhari...time to change approach
Fast forward to the eve of Buhari’s departure to London for an anti-corruption conference convened by UK’s Prime Minister, David Cameron. Shehu wrote another article laced with commendations to the effect that his boss was being courted all over the world because of his accomplishments in the fight against corruption. But the ink on that articles had hardly dried only for the British pm to ‘burst his bubble’ in a gaffe, where he referred to Nigeria as a ‘fantastically corrupt’ country, in spite of the much vaunted efforts and claimed successes in the fight to tame the corruption monster by the administration. Information and Culture Minister, Lai Mohamed, who is reportedly the current butt of many jokes within the social media circle, in his attempt to demonise the former ruling party, failed woefully and ended up de-marketing Nigeria and Nigerians, to the consternation of innocent Nigerians in diaspora, who are currently bearing the brunt of the negative labeling arising from the often hyped and exaggerated allegations of corruption. Following the present economic meltdown, which is reflective of sound economic policy deficit besetting the current regime, Nigeria is now virtually tottering on the verge of a recession according to the latest figures released by the National Bureau of Statistics (NBS). As a result of this development, the present regime has now inadvertently become a victim of her own negative propaganda, because practically all aspects of economic life in Nigeria are now in a state of decline. For instance, which foreign investor would put money in an economy that the authorities have officially admitted is a cesspool of corruption and one in which uncertainty reigns supreme as government has failed to come up with clear cut fiscal policy direction, one year after assumption of office? Let’s face it, there is also corruption in the Vatican as evidenced by the recent sacking of a top official for corrupt practices, but the Pope would not mount the podium anywhere in the world and say, yes there is corruption in the Vatican and his mission as a Pope is to wipe out corruption. That would be sanctimonious indignation. Buhari’s sanctimoniousness is hurting instead of helping the Nigerian economy. Before the dawn of the current reality, it was almost felt that the president’s spokes-
men were right because truly, without saying a word, some of the oil/gas barons, who scammed the system through fuel subsidy, but out of their own volition started supplying cargoes of fuel that they claimed were outstanding in the contracts via crude-for-refined products swap. We even heard that others in the oil and gas industry voluntarily paid huge sums of money that they declared as outstanding in their custody into government coffers. The Nigeria Liquified Natural Gas (NLNG), even joined the bandwagon by remitting over $2 billion into the federation account. This was money that they had held back from the previous government, and which thankfully enabled Buhari to utilise in bailing out some states that were unable to meet their financial obligations. In fact, it was so wonderful to behold the situation whereby a nation in which accountability was an anathema, suddenly becoming more rules conscious and compliant. Evidently, the days of chastity did not last for long. Today, the joy ride, which the initial positive developments reflected are now behind us as the bubble has burst. Let me put some flesh on the bones by digressing a bit: until last week, fuel queues had become badge of dishonor worn by Nigerians; they only abated with fuel pump price jumping from N86 to N145; electricity power supply has dropped to all time low of less than 1500 megawatts, while tariffs have hit the roof and forcing hapless citizens to resort to the use of generating sets as alternative to public power supply. GDP growth rate has plummeted from 2.11% barely one year ago to – 0.36% and unemployment rate has climbed up to 12.7l% from 10.4%; the naira exchange rate with the USA dollar fluctuates between N320-400/$1; and crude oil production/ export has been hovering around 1.5 million barrels a day from 2.2 mbpd production quota as approved by OPEC. And to cap it up, inflation is now 13.7 as at end of April, up from about 12.6 last year. What the economic indices above indicate is misery as evidenced by the atmosphere of doom and gloom which are now pervasive in Nigeria. So to those, who nursed the false and erroneous impression at the nascent stage of this administration that it was the fear of Buhari, through his ‘body language’, that was boosting electricity supply, keeping fuel flowing in petrol stations, and making
exchange rate stable, they were wrong. The truth is that it was actually the momentum built up by the previous administration which was working extra hard to earn votes during last general election, in order to return to office that was still sustaining the economy even after its exit. It was therefore not surprising that in the absence of further policy directives by the new government, the previous momentum lost steam resulting in economic slowdown and subsequent degeneration into the current melt down. Arising from the foregoing, the new Sherriff in town and body language hypothesis were purely myths that have been demystified by current realities. Fortunately, all is not lost yet, as there is still plenty of time to recaliberate. Of all the series of events that have happened since the return of Buhari to power, the enlistment and empanelling of a transition committee headed by former super permanent secretary, Ahmed Joda to supervise the smooth transfer of power from the outgone administration to the present was quite epochal and significant in my judgment. However, the decision not to implement most of the proposals in the 800-page recommendations of the 19 man committee has turned out to be the Achilles heels of this administration and the assertion above is made without malice. As I can recall, the committee, which comprised of accomplished technocrats and experts from both the public and private sectors, had seven people from the North, five from the South-west, three from South-south, two from the Middle-belt and two from South-east, worked assiduously hard for several weeks combing through the handover documents from the outgone administration. In the course of the exercise, they must have read through files detailing what informed certain policy decisions, challenges encountered in implementation, before adopting some and discarding others after the reviews. The Single Treasury Account (TSA) and Zero Based Budgeting (ZBB) that were unimplemented initiatives of the former regime but now adopted and operated by the present government must have been discovered in the course of the exercise. The case for the removal of the obnoxious fuel subsidy policy, which the panel also proposed, and government initially rejected, must have also been identified at the same time, ditto the floating naira exchange rate. Similarly, the sale of valuable oil/gas assets to raise funds were also proposed, but the president, perhaps based on his unbridled love for the masses, rejected those proposals, insisting that he had not been convinced by the arguments that the poor would not be negatively impacted, if fuel subsidy was removed; exchange became flexible and some oil assets were sold. Furthermore, the president also stuck to his gun on the issue of naira devaluation and choosing instead to peg the naira at N197/$1, even though reality indicated that rates are much higher in the parallel market. The authorities have also been averse to selling public assets ostensibly due to the belief that it would produce private oligarchs, even though Saudi Arabia is more or less doing so now to bail herself out of the prevailing global recession arising from the sharp drop in crude oil prices. -Onyibe, a development strategist and former commissioner in Delta State is an alumnus of the Fletcher School of Law and Diplomacy, Tufts University, Massachusetts, USA NOTE: Interested readers should continue in the online edition on www.thisdaylive.com
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TUESDAY, MAY 31, 2016 • T H I S D AY
FEATURES
Acting Features Editor Charles Ajunwa Email charles.ajunwa@thisdaylive.com
A Soldier's Bullet Shatters a Family's Joy Recently, the life of a young mother of four was brutally cut short by a bullet from an overzealous soldier who fired indiscriminately into a tricycle which was conveying her to her daughter's wedding in Effurun, Delta State. Omon-Julius Onabu, who has been following the story, reports
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t times like this when the problem of transportation has been aggravated not only by the exorbitant cost of fuel but by the coming of heavy rains in the Niger Delta, it should not appear abnormal for the excited mother of a bride to hop into a tricycle on her daughter's wedding day. However, it was not because of the heavy downpour in Warri/Effurun area the previous evening or the flooded roads that forced Mrs. Alice Orobogha Akparobi to hire a tricycle to convey her to the venue of her daughter's church wedding. It was the last Saturday of the month and a day observed across Delta State as environmental sanitation day. Government places restrictions on movement of citizens, except those on certain essential duties, to encourage greater participation in the exercise by residents, such restrictions usually lasting between 7a.m. and 10a.m. A joyful journey that was not to be So, when she realised on that fateful day that many things would not be fixed and made ready for the church wedding and the reception that would follow on account of the restrictions, Mrs. Akparobi opted for the option of hiring a commercial tricycle to take her in time to the wedding venue. This appeared the most reasonable thing to do as the option of a motorbike, popularly called 'okada', was ruled out with the banning of motorcycle operation in Warri/Effurun metropolis and Asaba since 2012. Then tragedy struck. Her movement was short-lived as did her journey to celebrate her daughter's happy wedding day. At Jakpa Junction, Effurun, near Warri, an edgy soldier reportedly opened fire on the tricycle she was traveling in, resulting in the instant
Late Akparobi...felled by a soldier's bullet
Then tragedy struck. Her movement was short-lived as did her journey to celebrate her daughter's happy wedding day. At Jakpa Junction, Effurun, near Warri, an edgy soldier reportedly opened fire on the tricycle she was traveling in, resulting in the instant killing of the mother of four and a state civil servant who worked in Oleh, the administrative headquarters of Isoko South Local Government Area of the state
killing of the mother of four and a state civil servant who worked in Oleh, the administrative headquarters of Isoko South Local Government Area of the state. The soldiers had reportedly flagged down the tricycle at Jakpa Junction, claiming it was not yet 10a.m., the official time for ending the environmental sanitation exercise across the state, and because the rider disobeyed, one of the soldiers aimed his rifle at the tricycle and pulled the trigger severally. In his statement denouncing the brutal killing of the 53-year-old woman, Oghenejabor Ikimi Esq., the executive director of a human rights group, the Centre for the Vulnerable and the Underprivileged (CentreP), alleged that the soldiers also refused to help the innocent woman and as well prevented sympathisers from doing so. As she fell off the tricycle and groaned in pain in the pool of her own blood, the soldiers allegedly fired shots to scare off people who tried to help the dying woman. Thus, she gave up the ghost while, unmoved by the poor woman's agony, the soldiers looked on and angry but scared sympathisers watched helplessly. At the ensuing confusion the tricyclist had managed to flee the scene with his life. "Citizen Alice Akparobi was abandoned by the said soldiers in the pool of her blood and after 20 minutes of the deceased wailing in the pool of her blood she gave up the ghost as the soldiers refused to help," Ikimi lamented in the statement of protest e-mailed to THISDAY.
The incident occurred at about 8.30a.m. though the body of the deceased woman was brought to the Ekpan Police Station later, before being taken to the morgue by the police at about 10:10 a.m. First daughter of the deceased, Alero, who narrated the family's ordeal to newsmen in Warri, confirmed that the soldier fired a bullet straight at her mother hitting her in the chest just under her left breast (as pictures from the Central Hospital Warri morgue show). Alero expressed regrets that the soldier who killed her mother had not been arrested but was rather whisked away by a reinforcement of soldiers. Alero further revealed that her mother was in very high spirit on the fateful day because not only was her second daughter getting married, Mrs. Akparobi had just been promoted to the next level in the Delta State civil service. Thus, it was double celebration of sorts for her and her happiness knew no bounds. The cry for justice Several issues bordering on the legality of the action of security personnel have also been raised in several quarters. Several youth and socio-cultural bodies as well as individuals have been quite emotive about their objection to the callous killing. For instance, the CentreP director said, "We condemn the above incident as barbaric and we call on the Nigerian Army authorities to apprehend the said soldier and hand him over to the police for a murder trial as there
is no law that restricts the movement of Nigerians on a sanitation day nor is there a law that gives a soldier the power to shoot at commuters at an army checkpoint if the vehicle or tricycle they board refuse to stop. "We believe that what the erring soldier should have done was to jot down the registration number of the said tricycle or its codification number boldly written on the said tricycle instead of resorting to killing an innocent commuter. Eye witnesses interviewed by CentreP were able to identify one of the soldiers at the scene with the name tag of E. K. Christian and an Army Truck with the inscription of Nigerian Army–008. Eyewitnesses interviewed also informed CentreP that the aforesaid soldiers fled the scene of the shooting after they allowed the victim to bleed to death as the said soldiers refused to help the victim or allow passersby to render assistance to the said victim." The human rights lawyer assured that his organisation had contacted the relevant military authorities and was prepared to pursue the case to its logical conclusion. "CentreP has formally written a letter to the Commanding Officer of the '3' Battalion, Effurun where the said erring soldiers are attached, and the Chief of Army Staff on the above issue, and we shall not hesitate to commence legal action against the Army authorities in the event of a cover-up", Ikimi said. Similarly, director of United Kingdombased 'Women of Afrika', Mrs. Alice Ukoko, expressed displeasure at the frequency of human rights abuses of citizens and particularly women in the Niger Delta and Nigeria in general. The flagrant disregard for the sanctity of the human life, according to the lawyer and one-time governorship aspirant in Delta State, remains a sad commentary on the level of democratic development in Nigeria. Ukoko warned that the killing of the woman by the soldiers should not swept under the carpet but fully investigated and the perpetrators brought to justice to serve as deterrent. Meanwhile, son of the deceased, Shedrack Akparobi, has sent an SOS to the Delta State and Federal Governments to wade into the matter to ensure that justice is done. This followed an alleged attempt to stave off a looming legal battle by army with an offer of paltry N200,000 for burial of their deceased mother. The monetary offer made by Major M. Anzaku, Commanding Officer, 3 Battalion Effurun Division of the Nigerian Army, at a meeting in a hotel in Effurun early this month, was rejected by the deceased family who described it as "an insult." Victim of stray bullet An intervening but disturbing fallout from the fatal shooting of the bride's mother by the soldiers at Jakpa Junction, Effurun is a lad now battling for his life in a hospital in Warri after being hit in the stomach by a stray bullet during the incident. The 18-year-old Shedrack Saduwa was, like Mrs. Alice Akparobi, allegedly abandoned by the soldiers after being hit and seriously injured by the bullet. The fact that his intestines were pushed out as he fell to the ground from the impact of the bullet indicated the seriousness of the wound. However, he was eventually rescued and taken to a nearby hospital by sympathisers where he is still under intensive care unit. The Ikimi-led organisation, CentreP Continued on next page
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• T H I S D AY TUESDAY, MAY 31, 2016
FEATURES
Shedrack Saduwa...hit in the stomach by a stray bullet during the incident
Son of the deceased, Shedrack Akparobi, has sent an SOS to the Delta State and Federal Governments to wade into the matter to ensure that justice is done. This followed an alleged attempt to stave off a looming legal battle by army with an offer of paltry N200,000 for burial of their deceased mother
IG Solomon Arase...should prosecute the culprits
is also spearheading the campaign to get the military authorities in Delta State to do the needful in order to save the life of the young carpenter. "We condemn the above incidents as barbaric and we call on the army authorities to apprehend the said soldier and hand him over to the police for the offence of attempted murder and murder as there is no law that restricts the movement of Nigerians on a sanitation day nor is there a law that gives a soldier the power to shoot at commuters at an army checkpoint if the vehicle or tricycle they board refuse to stop", Ikimi maintained. The Delta State Police Command spokeswoman, Mrs. Celestina Kalu (DSP), had, however, assured that police operatives were investigating the incident but dismissed
Chief of Army Staff, Major-General Tukur Buratai...all eyes on him to ensure that justice is done at the end of the day
insinuation that the soldier responsible for the killing might escape justice. “Police would follow standard procedure for arresting an erring soldier where the army authorities failed to voluntarily hand him over,� Kalu told THISDAY. In Nigeria, indiscriminate use of firearms by those charged with the responsibility of protecting lives and property and maintaining law and order in the society is commonplace. For refusing or even delaying to part with a little as N20 or N50 the lives of many conductors and commercial bus drivers and their passengers have been terminated by security personnel including the police and the army. Unfortunately, rarely are the culprits in many of such cases brought to book. The case of Mrs. Alice Akparobi is
yet another sad commentary on the low level of regard for the sanctity of the human life in the society today. Worse still, since the communal crises in Warri and environs in the 1990s, the area has continued to wear the image of an occupied territory somewhere in war-torn Middle East. Thus, despite the conspicuously displayed signage at practically all the army checkpoints in Warri/Effurun metropolis and environs that offering of bribe to security personnel is a crime, harassment and extortion at these points is carried out with such reckless abandon that the security personnel probably believe it is their right to make drivers cough out something. As a matter of fact, most residents seem to have resigned to
faith, believing the appropriate authorities have given tacit approval to these acts of intimidation and extortion of the ordinary citizens, hence the people have to obey the security personnel with their heads bent low in total submission. Were a genuinely convivial atmosphere to exist between the soldiers and the residents and civilian road users in Warri/Effurun and other parts of Delta State, perhaps all that late Alice Akparobi needed to do was to stop the tricyclist, explain the urgency of her mission to the soldiers without any fear of arousing their fiery anger agains the tricyclist. The question now is, will justice ever be done in this case? Will the culprits ever be brought to book for the purpose of deterrence?
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IMAGES
T H I S D AY • TUESDAY, MAY 31, 2016
Photo Editor Abiodun Ajala Email abiodun.ajala@thisdaylive.com
L-R: Vice-Chairman, Senate Committee on Public Accounts, Senator Gbolahan Dada; Chairman, Senate Committee on Public Affairs, Senator Andy Uba; and another member of the committee, Senator Bassey Akpan representing Akwa Ibom North East, when account officers of federal MDAs appeared before the committee to clarify some issues in their audited reports in
L-R: General Manager, Amadeus Nigeria and Ghana, Mr. Yann Gilbert; Managing Director, Aviator Travels, Mrs. Tinuke Nwakohu; President, National Association of Nigerian Travel Agents, Mr Bankole Bernand; and Vice-President, Amadeus, Africa, Mr. Paul de Villiers, at the formal opening of the companyís new office complex at Dolphin Estate Extension, Ikoyi, Lagos...recently
L-R: Regional Operations Director, Lagos Region, Airtel, Oladokun Oye; winner of Airtel Trace Music Star Season 2, Ehieduonye Ezehike a.k.a ëEduí; and the Managing Director, Trace, Nigeria and Anglo-African countries, Sam Onyemelukwe, at the national finale of Airtel Trace Music Star Season 2 in Lagos...recently
Former Vice-President Atiku Abubakar(right) receiving in audience the Greater Gbagyi Development Initiative led by the Etsu Kwali, Alhaji Shaban Nizuzzo Audu, in Abuja...recently
L-R: Group Head, Video, MTN Group, Mr. Jason Lobel; General Manger, Sales Enterprise Business Unit, MTN Nigeria, Mr. Adekunle Adebiyi; Chief Executive Officer, InView, Ms. Jason Austin; and the representative of the Director General and Zonal Director, National Broadcasting Commission (NBC), Dr. Igomu Onoja, during the unveiling of MTN Digital Television, in JosÖrecently
L-R: New Comptroller General of Nigeria Immigration Services(NIS), Alhaji Mohammed Babandede; Permanent Secretary, Ministry of Interior, Mr. Bassey Akpanyung; and Minister of Interior, Lt Gen. Abdulrahman Dambazau (rtd), during the swearing-in of Babandede in Abuja...recently
L-R: Minister of Labour and Employment, Senator Chris Ngige; FCT Minister, Malam Muhammad Musa Bello; and the Minister of Information, Alhaji Lai Mohammed, during an interactive session organised by the Broadcasting Organisation of Nigeria (BON) for ministers to discuss the state of the nation, in AbujaÖrecently
L-R: Group Head, Retail Banking, Skye Bank, Nkolika Okoli; acting Zonal Coordinator, National Lottery Regulatory Commission, Akure Zone, Mrs. Seyi Audu; Babaloja of Akure Kingdom, Chief Olowu Ige; Iyaloja of Akure Kingdom, Chief (Mrs.) M. Adekanye; and Regional Manager, Ondo/Ekiti Region, Skye Bank Plc, Rasheed Yusuf, at the bankís 11th ìReach For The Skye Millionaireî reward scheme in Akure, Ondo State... recently
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T H I S D AY • TUESDAY, MAY 31, 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
2 7 ,
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 Ayade: C’River to Become Industrial Hub Cross River State Governor, Professor Ben Ayade has said his administration was determined to make the state a construction hub in Africa. He said in his democracy day broadcast, he has already done diligent planning to bring the plan to fruition. “We are fully reloaded to make Cross River State the construction hub for Africa. It is indeed difficult at this point in time to hope perhaps that magic would be done. “But with sincere commitment with the love and fear of God with all your support, Cross River State indeed shall move from 3rd world to 1stworld under my watch,” he said. He pledged that his administration would move “Cross River beyond the boundaries of hope and jobs to the horizons and frontiers of content, bliss and happiness.” “One year into our administration today we can assure you that victory, prosperity, success and an end to poverty and unemployment is assured. As sharp hunters we won’t miss our mark. As custodians of your collective trust, we would keep our promise”, he stressed.
LCCI Honours Seven Energy
DISCUSSING AFRICA’S ECONOMIC GROWTH
L-R: Prime Minister of Mozambique, Mr. Carlos Agostinho do Rosário; President of African Development Bank (AfDB), Dr. Akinwumi Adesina; Chairman of UBA Plc and Founder, The Tony Elumelu Foundation, Mr. Tony Elumelu; and President of Zambia, Mr. Edgar Lungu, during the annual meeting of AFDB held in Lusaka, Zambia…recently
Marketers Defy FG, Sell Petrol above Official Ex-Depot Price Ejiofor Alike Despite federal government’s recent increase of the price of petrol to reflect the high cost of foreign exchange used in the importation of the product, some marketers and depot owners have defied government’s directive by selling above the official ex-depot price, THISDAY’s investigation has revealed. The high ex-depot price, it was learnt, has equally led to the sale of the product above the official N145 per litre in some filling stations across the country. Shortly after the recent adjustment of pump price to
ENERGY N145 per litre, the Petroleum Products Pricing Regulatory Agency (PPPRA) had in an official letter with reference number A.4/9/017/C.2/ IV/690, dated May 11, 2019, given a range of N123.28 – N133.28 per litre as the indicative ex-depot price for collection to all the marketers and depot owners. The acting Executive Secretary of PPPRA, Mrs. SE Iyoyo, who signed the letter, also directed the marketers to sell at an indicative retail price band of N135 – N145 per litre at the pumps. “All marketers are advised
to operate within the indicative price band as advised by the PPPRA to avoid being sanctioned,” Iyoyo warned. But THISDAY’s market survey revealed that some marketers and depot owners were selling above the N123.128 – N133.128 ex-depot price band at the weekend, thus pushing the pump price above the N145 per litre in some filling stations. The survey showed that on Thursday, ASCON Petroleum was selling at ex-depot price of N134; BOVAS – N134; Heyden Petroleum – N135/ N136; MRS – N134 and Eterna Oil – N134. Depots that sold product
within the range of the price band include: Fatgbems – N130/N132; Rahamaniyya – N133; Folawiyo –N133 and Integrated Oil – N132/N133. On Friday, some of the marketers also flouted the pricing regulations, with ASCON selling at N134 per litre; Hensmor- N134; MRS – N134; and Heyden N134.50/N135. However, other marketers operated within the ex-depot price band and these included: BOVAS –N133; Eterna Oil –N133; Fatgbems –N132; Folawiyo – N132.50; Integrated Oil –N132; Index Petroleum Continued on page 24
Nigeria to Refine 1.3mbpd of Oil for Consumption by 2023 Chineme Okafor in Abuja The International Institute for Petroleum Energy Law and Policy (IIPELP) has said Nigeria would refine up to 1.3 million barrels of crude oil daily (mbpd) by 2023 to meet the fuel demand of her growing population. IIPELP, an energy law and policy think-tank disclosed this in its recent policy analysis and brief on the government’s review of operations in the country’s downstream, which saw it increase petrol pump price. The policy brief was obtained by THISDAY in Abuja. It con-
ENERGY tained amongst other things, the Institute’s support for the government decision on the downstream sector, but called for deeper policy thrusts. It said at the country’s current crude oil production level, such demand would be huge on the country, hence, the need for proactive policy measures to avert possible instances of energy crisis. “In IIPELP’s analysis, by 2023, given the current rate of growth, Nigeria’s refining capacity would have to grow to 1.3 million barrels of oil per day which currently exceeds
government entitlement crude under current fiscal arrangements. “This means that Nigeria would need to import crude to feed potentially an expanded refinery capacity or compel its partners’ entitlement crude to be delivered to the domestic market,” said the institute in the brief. It explained its choice to support government’s recent move in the downstream sector saying: “IIPELP welcomes the move by the federal government, though belatedly, to restore some semblance of macro-economic stability in the country.
“Going by the latest news of a possible devaluation of the currency, these steps would enable sound economic management and encourage genuine investors.” It further said: “The removal of subsidy or shall we say, the adjustment of petroleum products prices to reflect an exchange rate closer to reality should allow for the country to be served by oil companies other than NNPC. IIPELP has always believed that the way to reform the petroleum sector or any other sector is to incentivise supply Continued on page 24
Seven Energy has won the prestigious ‘Impactful Investment in Gas to Power Industry Award’ at the recent 2016 Lagos Chamber of Commerce and Industry (LCCI) Awards. The LCCI Awards recognises deserving corporate and public institutions that have contributed to commerce and industrial development in different sectors of the Nigerian economy through innovation, business sustainability and positive societal impact. Commenting on the award, Chief Executive Officer, Seven Energy, Phillip Ihenachosaid, “We are truly honoured to be a recipient of the LCCI award and are pleased that our effort in providing the much needed gas for sustainable power supply and for use by industries to drive economic growth is being recognised. We remain fully committed to delivering on the vision that sees Nigeria powered by its own gas resources”. The LCCI stated that the Group was selected for the award in recognition of its commitment to sustainable power supply in Nigeria through efficient gas delivery. Other reasons include Seven Energy’s Green Team Initiative, an innovative community-based approach to maintain, monitor and clear the Right of Way (RoW) of its gas pipelines and the recent admission of Seven Energy into the Corporate Pillar category of the Voluntary Principles on Security and Human Rights. The LCCI presents a total of 20 awards to deserving organisations every year and is the largest chamber of commerce in Nigeria with over 1,500 member organisations spread across all sectors.
US Oil Drillers Cut Rigs
US oil drillers cut rigs for a ninth week in the last 10, energy services company Baker Hughes Inc said on Friday, even as crude prices this week tested a seven-month high at $50 a barrel. Prices were on track to recover for seven out of the last eight weeks, and are now at the high end of a level that analysts and producers had said could soon trigger a return to the well pad. Drillers cut two oil rigs in the week to May 27, bringing the total rig count down to 316, the lowest since October 2009 and about half the 646 rigs of a year ago, Baker Hughes said in its closely followed report. Before this week, drillers cut on average 11 oil rigs per week for a total of 218 so far this year. They cut on average 18 oil rigs per week for a total of 968 in 2015, the biggest annual decline since at least 1988 amid the biggest rout in crude prices in a generation. The rig count has dropped since hitting a peak of 1,609 in October 2014 as U.S. crude futures fell from over $107 a barrel mid-2014 to a near 13-year low around $26 in February.
“We can’t spend so much money to put up the refineries just to sell them as scrap. I think that will be disservice to the country” President of Nigeria, President Muhammadu Buhari
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T H I S D AY • TUESDAY, MAY 31, 2016
BUSINESSWORLD MARKETERS DEFY FG, SELL PETROL ABOVE OFFICIAL EX-DEPOT PRICE
– N132; Sahara Energy – N133 and Rahamaniyya –N133. The PPPRA had also warned that marketers that it would continue to monitor the market fundamentals in line with the policy of appropriate pricing, with a view to advising the marketers on subsequent guiding price band for petroleum products at the beginning of every month. The federal government had earlier increased the pump price to N145 to allow marketers source for foreign exchange at N285 per dollar, against the official N197 for which the previous pump price of N86 was based. The major marketers, who received forex assistance from the international oil companies (IOCs), have revealed that they source dollars at N320, which translates to a pump price of N165 per litre, against the government’s projected N145. The independent marketers and other importers on the other hand, have however argued that their exchange rate at the parallel market is as high as N360 per dollar, thus making the N145 official pump price potentially unsustainable. NIGERIA TO REFINE 1.3MBPD OF OIL FOR CONSUMPTION BY 2023
and this can only be done when there are potentially, multiple sources of that supply and investment decisions can be made on a sound economic basis.” The Institute added that between 2010 and 2014, Nigeria spent in excess of 7 trillion on a subsidy programme it said was widely fraudulent. It added: “In the process, the country exhausted its “excess crude account” and increased domestic borrowing from 4trillion as at 2010 to 11 trillion as at end of the year 2014.” Subsidy in Nigeria, it explained represented the largest wealth transfer scheme from the poor to the wealthy ever invented.
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
Lagos’ Aje Oilfield Produces in Excess of 10,000 bpd Ejiofor Alike The two wells in Aje oil field located in Oil Mining Lease (OML) 113, offshore Lagos, have tested in excess of 10,000 barrels of oil equivalent per day, Panoro Energy, an independent oil and gas company based in the United Kingdom, has announced. After spending over two decades exploring for hydrocarbon resources off the coast of Lagos, Yinka Folawiyo Petroleum, in partnership with Panoro Energy ASA and First Hydrocarbon Nigeria (FHN) Limited, among others, had on May 3, 2016 achieved first oil on Aje field, catapulting Lagos State into the league of oil and gas producing states in the country. In its first quarter 2016 financial results released at the weekend, Panoro announced that the two wells in Aje field have tested in excess of 5,000 bopd each. Chief Executive Officer of the company, Mr. John Hamilton, CEO of Panoro, commented that his company was extremely pleased to have reached first oil production at Aje, offshore Nigeria. “This is a transformational milestone and establishes Panoro as a full cycle E&P company. In Gabon, we continue to see enormous potential upside at Dussafu where we are working on securing partners to drill an exploration well. We feel this well will be the catalyst to move the project forward and unlock its inherent value. Having achieved production at Aje, we have
established a strong platform from which to grow Panoro and add value for our shareholders. Looking forward, our strategy is to now expand our portfolio by acquiring further high quality production and development assets in West Africa,” Hamilton explained. The first two wells in Aje Are expected to peak at 12,000 barrels of oil per day, and the flow rates would increase as more wells are drilled on the field. However, of greater signifi-
cance also is the disclosure that the oil field holds untapped reserves of about 650 billion cubic feet (bcf), which if harnessed in two to three years’ time, could supply Lagos, Nigeria’s commercial hub, all the gas feedstock it needs for the thermal power stations and other manufacturing concerns domiciled in the state and its environs. The subsea installation activities had been underway at Aje since January and were completed in early March,
ready for the hook up of the Front Puffin Floating Production Storage Offshore (FPSO), which arrived in Nigeria on March 16. Oil produced from the Aje field will be stored in the Front Puffin which has a production capacity of 40,000 barrels of oil per day (bpd) and storage capacity of 750,000 barrels. Located in the extreme western part offshore Nigeria, adjacent to the Benin border in the Dahomey Basin, the field is situated in water depths
ranging from 100 to 1,500 metres, about 24 kilometres from the coast. The field is situated 64 kilometres from Lagos and 12 kilometres close to the West African gas pipeline operated by Chevron. The current Aje partnership, which was formed in August 2013, is made up of Yinka Folawiyo Petroleum (operator), New AGE (African Global Energy), FHN, Energy Equity Resources (EER), Panoro, and Jacka Resources.
BUSINESS EXPANSION
L-R: Technical Director, Nigeria Sugar Council, Mohammed Jika; Group Executive Director, BUA Group, Kabiru Rabiu; Senior General Manager, BUA Sugar, Rasheed Olayiwola; and Group Head BUA Agribusiness, Mario De Mario, at the flag off ceremony of the BUA Sugar Company Nursery Plantation in Lafiagi, Kwara State… recently
NEITI: Solid Minerals Exported Without Ikeja Electric Urges Higher Safety Precautions during Permits Rainy Season say, squeals of corrupt processes Department does not use its Chineme Okafor in Abuja An independent audit of the operational processes and financial payments to Nigeria from companies that mine her solid mineral resources has shown that more of the country’s minerals were exported from her shores without legal permits. The report explained that while it is statutory that companies obtain regularly permits from the country’s ministry of trade before they can export her solid minerals, most of the companies that engage in the export trade have overtime sidestepped this requirement, thus costing the country revenues in export duties amongst others. It also revealed that the country’s Mines Inspectorate Department (MID) cannot accurately account for how much solid minerals were mined and taken out of the country at any period, saying that the MID mostly provided inaccurate production data when requested. These data according to the report for the sector’s operations in 2013 have often conflicted with what producers provided. The MID, it explained does not also use its procedures or systems to determine production data or volumes but frequently relied on sales volume of operators. This development, industry operators
and regulatory incompetence. “The Nigerian Minerals and Mining Act 2007 require that any exporter of solid minerals must request for permit to export. The audit could not be provided with any evidence of request for permit to export minerals by the exporters. “The audit has observed the incessant smuggling of solid minerals out of the country by middle men and smugglers. “The audit has observed persistent activities of some foreign nationals operating in the sector that constitute significant buyers of the solid minerals that are mined by artisanal and small scale miners, illegal miners,” said NEITI in the report, which was presented by Minister of Solid Minerals Development and chair of NEITI board, Dr. Kayode Fayemi. NEITI said the implications of such anomaly was reduced value addition; opportunity for revenue leakages; and inaccurate production transaction records. It said on production volumes and revenue: “We understood that the production data provided by the Mines Inspectorate Department was based on self-declarations submitted from the extractive companies in the solid minerals sector.” “The Mines Inspectorate
own procedures and systems to collect and control production data reported by mining companies. “In fact, we noted that for commodities such as sand, companies report sale volumes and not production data. Some of the quantities reported by the Mines Inspectorate Department do not match the corresponding royalty amounts,” the report added. Similarly, NEITI disclosed that up to N2, 037,594,163.80 which accrued from the solid minerals sector for the year ended 2013 were not yet reallocated to about 26 beneficiary states. This it explained was confirmed by the Revenue Mobilisation and Fiscal Allocation Commission as being in existence. The monies it said represent 13 per cent derivative benefits to states where minerals are mined. “The NSWG and the government should take quick action to ensure fiscal allocations and statutory disbursements to beneficiaries from the proceeds that accrued from the mineral resources. “This will lead to a more transparent and prudent management of public revenues from Nigeria’s extractive industries by various beneficiaries,” the report added.
Ejiofor Alike Ikeja Electric has called on residents and consumers within its network to adopt higher safety precautionary measures during the rainy season, in order to prevent electricity-related accidents. According to the company, the rainy season, a period which is marked by increased rainfall, thunderstorms, high winds and floods, often witnesses an escalation of accidents in the electricity sector. Unfortunately many of these accidents become fatal where residents ignore warnings and electric safety guidelines. Speaking on the need to continue its sensitisation campaign and create greater awareness, the company’s Head of Corporate Communications, Felix Ofulue maintained that the safety of its customers is paramount to the business at all times. “As a responsible organisation which is committed to the safety of its customers, it is pertinent to remind our valued customers of some basic guidelines that will help save lives at this time. We hope that our customers will in turn pass this information around such that more accidents are prevented and we will avoid loss of lives,” he explained.
Ofulue advised consumers to avoid conditions that can compromise the safe use of electricity, such as using wet electrical appliances; citing that the dangers associated with electricity when it gets in contact with water, especially in this period of rainy season, is very grave. He further warned that where poles had been felled during heavy winds, that pedestrians MUST stay away from the area until help comes. He warned against ignoring exposed conduit wires which may result in electric shock if they come in contact with water. “If you see a fallen power line, kindly move away from the line and any that is in contact with it because such power line in contact with water constitutes danger. The proper way to move away is to shuffle away with small steps, keeping your feet together and on the ground at all times, as this will minimize the potential for a strong electric shock”, he said. He called on residents to report cases of leaning, tilted or misaligned poles, sagging cables and snapped cables urgently through all the company’s social media channels, Customer Care website and helplines, so that the technicians can clear the faults immediately.
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T H I S D AY • TUESDAY, MAY 31, 2016
BUSINESSWORLD
ENERGY
Low Oil Prices, Militancy Mar Buhari’s First Year With the upsurge in attacks on oil and gas installations plunging Nigeria’s oil production to a 20-year low, and low oil price environment, Ejiofor Alike writes that there was little or nothing to celebrate in the country’s energy sector during President Muhammadu Buhari’s first year in office With his sound knowledge of Nigeria’s oil and gas industry as a former Minister (then Commissioner) of Petroleum Resources, President Muhammadu Buhari started on a good note after the May 29, 2015 handover, by putting in place measures to open up the sector and enthrone a regime of transparency, due process and accountability in an industry that was hitherto run in an opaque manner. Before the Minister of State for Petroleum, Dr. Ibe Kachikwu came on board first as the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), public perception and audit reports showed that the state-run oil company was ridden with corruption. Buhari inherited massive corruption, unresolved issues of inadequate funding of joint ventures, perennial scarcity of petrol, weak local refining capacity, long contracting cycles and other intractable challenges. The NNPC was run like a cult with most of its crude oil lifting contracts, crude SWAP arrangements, offshore processing agreements and other contracts involving the corporation shrouded in secrecy. With the public’s lack of access to relevant information, most of the information on NNPC’s financial and operational activities was based on speculations. Even key government functionaries such as a former Governor of Central Bank of Nigeria (CBN), who ought to know, were denied access to relevant data on the company’s financial activities, thus leading to dangerous speculations and unsubstantiated allegations of massive corruption. Having realised and publicly-admitted that over 80 per cent of the problems in Nigeria’s oil and gas sector revolve around the corporation, Buhari’s administration embarked on measures to sanitise the institution and open up its books for public scrutiny. With the raft of measures introduced in 2015, NNPC was able to gradually restore the confidence of local and foreign investors in the sector. Buhari’s ‘body language’ Even before Kachikwu was appointed, Buhari’s famous ‘body language’ was said to have stabilised the sector, sending vandals and oil thieves into exile and boosting oil and gas production. This administration initially enjoyed honeymoon as there were no attacks on oil and gas infrastructure within its first seven months in office. This success was, however, credited to President Buhari’s body language and not that his administration put any sustainable measure in place to curb vandalism. Due to lack of deliberate policy on the part of Buhari’s administration to consolidate on the gains of the Amnesty Programme of the late President Umaru Yar’Adua, this administration’s honeymoon ended with the first militant attack on Escravos-Lagos Pipeline, followed by the bombing of the Forcados subsea pipeline. The first pipeline attack under this current administration had occurred when suspected ex-militants blew up a section of the pipeline in Warri South-West Local Government Area of Delta State. The attackers reportedly blew up the gas pipeline at three different points -Opudebubor, Okpelama and Kpokpo area, Chanomi Creek and Sahara, behind Chevron Nigeria Limited. Upsurge in militancy After the first attack on Escravos-Lagos Pipeline, the Forcados subsea pipeline was bombed by a new militant group, which identified itself as Niger Delta Avengers (NDA). With the February 14, 2016 spill on the subsea pipeline, which forced Shell to declare force majeure on February 21, the bubble has since burst, with the country currently losing over
Niger Delta militants 2,000 megawatts of electricity and over 600,000 barrels of crude oil per day to militancy. This has plunged the country into darkness in recent weeks after the February 2, 2016 peak generation of 5,074 megawatts. Shell had confirmed that its diving teams, which inspected the export pipeline reported extensive damage that was consistent with the application of external force, an indication that it was an act of sabotage and NDA later confirmed this fear. Hopes of early improvement in power supply were dashed after Kachikwu revealed that the repairs on the NPDC’s pipeline could last up to May 29, 2016. The country is currently losing about 300,000 barrels per day due to the bombing of Forcados pipeline that conveys Forcados grade of crude oil to the over 400,000 barrels per day Forcados Export Terminal. Sabotage also forced Shell to declare force majeure on exports of Bonny Light grade of crude oil due to a leak, which led to the closure of the Nembe Creek Trunkline (NCTL). Aiteo-operated NCTL and the Trans Niger Pipeline (TNP) are the two major pipelines in the Eastern Niger Delta that transport crude oil production from SPDC, Aiteo and third parties in their Eastern operations to the Bonny Export Terminal in Rivers State. Shell declared force majeure on Bonny Light exports effective 12:00hrs Nigerian time, May 10, 2016, following a leak that led to the closure of Nembe Creek Trunk line for repairs by the operator, Aiteo Eastern E & P Company Ltd, the company said. Though Aiteo ruled out sabotage, the company lost about 75,000 barrels per day to 78,000 barrels per day to the incident, which was believed to be an act of sabotage. Chevron Nigeria Limited has also suffered spate of attacks in its western Niger Delta operation in recent weeks. Following the spate of attacks on its facilities, the company evacuated non-essential staff from its installations in the western Niger Delta, including the Escravos Export Terminal. After an earlier attack on the company’s
Okan Field, which affected the production of significant volumes of crude, the militants also struck at Makaraba and Otunana fields, disrupting the flow of crude oil production. With the attacks on Chevron facilities, the force majeure declared by Shell on Bonny Light exports due to a leak on the Nembe Creek Trunkline, as well as the weekend force majeure declared by ExxonMobil on exports of Qua Iboe, following the damage on a pipeline by a drilling rig, Nigeria’s crude exports slumped to 20-year low of about 1.64 million barrels per day. Disruption of refineries’ operations Before this present administration came on board, Kaduna and Warri Refineries had not been receiving crude oil feedstock through pipelines since 2010 because of vandalism. Since 2010, marine vessels were used to transport crude oil to the two refineries until April 2016 when the repairs of the Escravos-Warri Pipeline were completed and the refineries started receiving crude through the pipeline. However, less than two months after the pipeline was repaired, the Niger Delta Avengers bombed the lines and cut off crude supply to the refineries. Despite the huge success recorded in the area of enthroning transparency, the three refineries recorded very poor performance in the past one year, despite the huge promises made by the new administration. NNPC’s monthly report exposed the poor state of the refineries, with performance averaging 10 per cent in 2015, which was different from the picture of robust performance earlier painted by the management of Nigeria’s three refineries. Kachikwu had earlier given the three refineries an ultimatum of 90 days, which ended in December 31, 2015 to increase capacity utilisation to 60 per cent or risk shut down for possible maintenance. “The reality is that the refineries as of now are not yet working because if you do give me 60 per cent performance one week and the next week I am down to zero per cent performance, the average you have done is 30 per cent. The average performance of the
refineries right now is 30 per cent based on the continuity basis as that is the fact and that is the reality. Now, is it anybody’s fault? Not really. What we need to do is say which of those refineries can work in the short term? Which ones do we need to shut down and do proper maintenance to get them to a position where they can actually compete,” Kachikwu had told THISDAY. NNPC’s restructuring Despite the intractable challenges, the appointment of Kachikwu was the strongest signal that Buhari was determined to break away from the past and re-write the history of the corruption-ridden corporation. Immediately on assumption of office, Kachikwu initiated monthly publication of NNPC’s financial results and a raft of measures targeted at personnel restructuring to enhance transparency and competitiveness of Nigeria’s operating environment. As a cost-cutting measure, he commenced the restructuring of the corporation and also ordered a forensic audit of the NNPC. He also divided the Pipelines and Products Marketing Company (PPMC) into three portfolio companies that will manage the refineries, pipelines and supply of petroleum products. Kachikwu had also unveiled what he called a three-pronged process in the restructuring of the corporation and told THISDAY recently that the restructuring was only 25 per cent completed. So, for the first time in the history of the NNPC, the corporation began a monthly publication of its financial and operational reports in 2015. In one of the measures initiated by this administration to ensure cost reduction and strengthening of operational efficiency across the value chain, this administration had cancelled the contracts for crude oil deliveries to Warri, Port Harcourt and Kaduna refineries due to what he described as the exorbitant cost and inappropriate process of engagement. The NNPC also in 2015 terminated the Continued on page 29
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BUSINESSWORLD
ENERGY
Power Crippled By Sundry Problems The power sector in the first year of Muhammadu Buhari’s presidency was stunted by sundry challenges, even as the authorities continued to set unrealistic targets, writes Chineme Okafor
Geregu NIPP plant Electricity has become a part of modern life and one cannot think of a world without it. Access to affordable electricity is an enormous challenge facing households and businesses in Nigeria. According to the Nigeria Economic Summit Group (NESG), about 41% of firms in Nigeria generate own power. Also, the Manufacturers Association of Nigeria (MAN) disclosed recently that about 61 per cent of Nigerians own power generating sets due to the lack of access to electricity. Power generation has remained abysmally low at around 3,000 megawatts for decades and the situation has become messier despite the power sector privatisation and the huge amount of money invested in the National Integrated Power Projects (NIPPs), which currently contribute a paltry amount of electricity into the national grid. In the last one of year of President Muhammadu Buhari in office, generation often dropped below 2,000 megawatts owing to vandalism of gas pipelines and other equipment. Many however believe that the president’s failure to take critical decisions that could have progressed the policies on ground, contributed to the setback in the power sector in the last one year. During his inauguration, Buhari had expressed worry about how bad things were in the nation’s power systems and had pledged his determination to work differently to leverage on existing good policies. The president had said: “At home, we face enormous challenges. Insecurity, pervasive corruption, the hitherto unending and seemingly impossible fuel and power shortages are the immediate concerns. We are going to tackle them head on. “Nigerians will not regret that they have entrusted national responsibility to us. We must not succumb to hopelessness and defeatism. We can fix our problems,” he added when he accepted to chaperon Nigeria’s reported national revival. He also described as a “national shame” a situation where Nigeria struggled to generate and distribute just 4,000 megawatts (MW) of electricity. But one year after, the improvements he pledged to pursue are still feeble while power supply across nooks and crannies of Nigeria has become worse. As at today, Nigeria generates just about the
same quantity or even less of what Buhari met on ground – the country on the average manages between 2800MW and 3500MW, and without a single unit of spinning reserve as at the last check. It was under his watch that power generation rose to an all-time 5,074MW on February 2, 2016 as reported by the Transmission Company of Nigeria (TCN), but also dipped to another record low of zero megawatts on March 31, between the hours of 12.35pm and 3pm when Nigeria had no single unit of electricity on the grid to supply to her industries, homes and offices. Few weeks after Buhari assumed office, power supply across the country witnessed some improvements. But subsequently, shortages and blackouts became so routine and frustrating as his government failed to quickly address issues of gas supply to power station and inadequate transmission facilities owing to uncompleted transmission projects.
Power generation has remained abysmally low at around 3,000 megawatts for decades and the situation has become messier despite the power sector privatisation and the huge amount of money invested in the National Integrated Power Projects (NIPPs), which currently add a paltry amount of electricity into the national grid
If any at all, the policy approach adopted by the president in managing Nigeria’s power sector since he took over has largely contributed to systemic lull in the business of power generation, transmission and distribution in the country. And even though his minister in charge of power, Mr. Babatunde Fashola recently voiced out the government’s adoption of “incremental, stable and interrupted” power as the new policy it will adopt to generate 10,000MW in 2019, nothing new came to the power sector in Buhari’s one year in office. Generation stations (Gencos) still lacked fuel (gas) to switch on and stay on; distribution companies still contended with legacy challenges of poor distribution infrastructure, poor revenue collection and high technical losses; and the TCN still have projects that need to be completed but it cannot for sundry reasons the government has immense capacities to resolve. As Buhari marks his one year in office, analysts have rated his management of Nigeria’s electricity so far as either poor or non-committal. Also, his minister, Fashola appeared to be interested in providing excuses that the government was still studying the situation of policies and projects it met on ground. According to him, his frequent meetings with stakeholders in the sector was to get everyone on the same page. Experts have however attributed the government’s dithering in the sector to maybe its poor grasp or evaluation of how the country’s electricity sector has evolved in the last few years from a government controlled sector to now a market driven sector. They also said the president squandered almost six months of his first year without a minister to guide events in the power sector, which was still in transition. For them, the president had in his one year in office remained a lot silent on how he planned to advance policies that could lead to more and stable power supply in the country. Other than specific challenges of poor generation from frequent dip in gas supply to Gencos and other related distribution and transmission challenges, Buhari also remained largely unsuccessful in guaranteeing regulatory stability in the sector as well as certainty in
further investment. Constituting a board for the sector’s regulator, the Nigerian Electricity Regulatory Commission (NERC) since the tenure of the last board of commissioners expired in December 2015 has remained unattended to by the government. Irrespective of contrary views that the NERC could still function well without a constituted board of commissioners, the electricity Act on which Nigeria runs its power industry stipulated that a board of commissioners be put in place at all times to safeguard and strengthen regulations in the sector. Nigeria, according to experts have signed up to operate a globally recognised marketoriented electricity sector of which proactive regulation is one of its features, holding back the constitution of a proper fit-for-purpose regulator has its negative impacts on the confidence of operators in the sector. The NIPP was conceived as an intervention to the country’s poor power situation. It still has outstanding projects within its first phase schedule to complete. Notwithstanding the challenges, the government has within its one year in office shown commendable leadership in an aspect of the country’s power sector, which at a point threatened its commitment and respect for contracts in the power market. It was the resolution of a disagreement in a ‘ring-fenced’ power supply contract it signed with Geometric Aba Power and which was contested by owners of the Enugu Disco – Interstate Electrics. For a very long time, the agreement, which granted Geometric the priority right to generate and distribute power to the Aba and Ariaria business districts within the Enugu distribution network was contested by Interstates, and the government which signed the agreement with Geometric failed to come clean on the sanctity of the agreement it signed with Geometric. This unwholesome act placed government’s commitment to contract sanctity in the power sector in question, but it was however resolved after Vice President Yemi Osibanjo brought parties to the disagreement to agree on favourable terms, suggesting that Geometrics can now go on with its investments and improvement of power supply particularly to the eastern part of the country.
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BUSINESSWORLD Subsidy on Fertiliser Still in Place, Says FG The federal government has said the present administration is sustaining the subsidy on the fertiliser to boost farming operation in the country. The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, made the announcement during an interactive meeting with journalists. Ogbeh gave the assurance that the Growth Enhancement Scheme (GES) of the ministry was still active but would only be modified to optimally cater for the needs of Nigerian farmers. He reaffirmed that this administration would not engage in any policy
somersault. The Minister said: “Growth Enhancement Scheme (GES) is alive, we are modifying it and we are not engaging in any policy somersault, we are going to widen it. We did not remove subsidy, if we stop subsidy, it will affect agricultural productivity.” He noted the present administration would rather subsidise agricultural inputs than oil; adding that the ministry had developed a soil nutrients map that indicates the type of fertiliser that will be suitable for specific soil requirement and urged farmers in the states to adopt the technique.
Coca Cola Restructures, Nigeria Now W/Africa Regional Hub Raheem Akingbolu In a new restructuring exercise that was meant to reposition the global beverage drink –Coca Cola, in all its market networks, the company has announced a new streamlined international structure to better align its operating units against its global bottling footprint and to promote and develop key Coca-Cola leaders. According to the Chairman and Chief Executive Officer, Muhtar Kent, the announcement outlines important changes to the company’s international operating structure that better support its evolving bottler footprint and demonstrate the deep bench of management experience it has in the Coca-Cola system. He said the moves will continue to lay the foundation for strong leadership and management continuity of the global brand. President and Chief Operating Officer James Quincey added: “As we continue to implement our five strategic actions for growth, it is critical that our organizational structure enables the speed, agility and inspirational leadership that are necessary to win today and in the future. The changes we are announcing today streamline our international structure, and reflect strong talent succession and a commitment to developing the next generation of leaders at our company.” Under the new international structure, Nigeria will now host the newly formed West Africa Business Unit, which will based in Lagos and oversee Coca-Cola’s operations across of 31 countries with Peter Njonjo as President. The announcement also includes the reassignment of Kelvin Balogun, currently President for Coca-Cola Central, East and West Africa, as the President of the newly formed South and East Africa Business Unit. Meanwhile, the statement issued by the company also indicated that Coca Cola will form a Europe, Middle East and Africa (EMEA) Group, consisting of the business units that currently make up the Europe and the Eurasia and Africa Groups. In Europe, the Central and Southern Europe and Russia, Ukraine and Belarus business units will be combined into a
new business unit – Central and Eastern Europe – to better support the bottling footprint in that region. In Africa, two business units will be reconfigured to more closely align operations with bottling operations on the continent, with the formation of a new South and East Africa business unit and a West Africa business unit. Brian Smith, currently president of the company’s Latin America Group, will become President, EMEA Group, reporting to Quincey. Smith is a 19-year Coca-Cola veteran who has a proven track record of driving business results, developing and exporting talent and providing strong franchise leadership across Latin America, including past roles as Division President of Brazil and Business Unit President for Mexico. Smith’s leadership team will include Dan Sayre, who will continue as President, Western Europe; Nikos Koumettis, who will expand his existing role to become President, Central and Eastern Europe and Kelvin Balogun, currently President Central, East and West Africa (CEWA), who will become President, South and East Africa. others are; Zoran Vucinic, currently President, Russia, Ukraine and Belarus, who will become President, Middle East and North Africa; Galya Molinas, who will continue in her role as President, Turkey, Caucasus and Central Asia; and Peter Njonjo, currently General Manager of the East Africa Franchise in CEWA, who will become President of the new West Africa Business Unit. As the new EMEA Group is created, Nathan Kalumbu, currently President, Eurasia and Africa Group, will focus on key initiatives across the Africa business, including the Africa bottler consolidation, as well as serve on a number of boards, until he retires from the company effective Dec. 31, 2016. Alfredo Rivera, currently President of the Latin Center Business Unit, will become President, Latin America Group, reporting to Quincey. Rivera is a 19-year veteran of the Coca-Cola system who has held both company and bottler leadership positions throughout his career in Mexico, Guatemala, El Salvador, Brazil and Ecuador.
ENERGY
Customs Hands over Confiscated Containers of Substandard Goods to SON Crusoa Osagie The Nigeria Customs Service (NCS) has delivered seized containers containing substandard wires and cables to the Standards Organisation of Nigeria (SON). The Comptroller, Tin Can Island Port, Mr. Bashar Yankee, explained that despite efforts of SON and other regulatory agencies, unscrupulous importers have continued to import fake and substandard goods that are harmful to human lives. Yankee during the handing over of the seized containers to SON in Lagos, said apart from destroying lives and properties, importation of fake and substandard cables impacts negatively on local and genuine investments in
the country. He stated the need for inter-agency cooperation to curb the menace. In his words, “ Things manufactured in Nigeria should not be seen imported into the country, so automatically there is an intention to deceive Nigerian consumers as to origin of these cables. We know fully well that Nigeria wires and cables are considered as high quality in the world, so if we allow cables and wires from foreign countries coming in as made-in-Nigeria, then we are endangering our lives, investments and this is why in the spirit of inter-agency cooperation that we have always preached about to drive economic growth and development in the country.”
He added: “We are collaborating with the Standards Organisation of Nigeria (SON) whose duty it is to ensure quality control of everything we consume or use in our homes and in the country at large. We are handing these containers over to SON to do necessary investigation into because it is their statutory responsibility to get to the root of it and give feedback which is critical in modern day trade processes.” According to him, this is not the first time the customs is handling over substandard goods to statutory agencies, pointing out that its job is to identify and call to attention regulatory agencies to carry out enforcement and responsibilities. ”We are showcasing this so that other agencies
of government will see the impact and the importance of synergy in modern trade processes. No single agency can do things alone. It is a collective responsibility and the security of the nation can only be achieved when all agency work as a team for national growth and development,” he said. Also speaking at the event, the acting Director General, SON, Dr. Paul Angya, represented by the Deputy Director Inspectorate and Compliance, SON, Mr. Suleiman Isa commended the NCS for the cooperation SON has received, pointing out that both agencies have been enjoying a virile relationship in their efforts to safeguard Nigeria against substandard goods.
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BUSINESSWORLD
INDUSTRY
Economy Gets a Battering under Buhari Crusoe Osagie reports that the nation’s economy is in its worst state in three decades The current administration led by President Muhammadu Buhari came to power on the mantra of change and indeed Nigeria and her economy has not been the same since he took office. Perhaps, Nigerians should have asked the All Progressives Party (APC), during the campaign for the election that brought them to power to clearly define the nature of change they were promising to bring to the country-positive or negative change. The outcome of the review of the first one year of the Buhari administration from May 2015 to May 2016 has shown significant changes in the economic indices of the nation, however all these changes have been negative, signifying a slide of the economy into the doldrums. Oye says situation is worrisome Although the Vice President of the Nigerian Association of Chambers of Commerce and Industry Mines and Agriculture (NACCIMA), Mr. Dele Oye, refused to right off the current government, he agreed that the nation’s economy is in the worst state since three decades. Oye said investment flow into the country has been near zero while existing investors are pulling out of the country due to the extremely difficult operating environment and shrinking purchasing power. He explained that what is worse about the current crisis is that it has taken a toll on the prices of the most basic physiological needs such as food, healthcare and shelter. “Remember that one of the major causes of the French revolution in 1789 was the increase in the price of bread and general food insecurity, so it is extremely worrisome that the price of food in the country has risen to such unprecedented levels,” Oye said. A survey of the average prices of essential commodities in the country showed that a 50kg bag of rice, which was sold for around N7,000 in May 2015 now sells for N19,000. Petrol increased from N87 per litre to N145 per litre; a basket of tomato rose from N5000 to N42,000; a loaf of bread rose from N200 to N250; and a bag of garri rose from N3,500 to N8,500. With all these happening at a time when both employers in the public and private sectors are neither able to pay salaries as and when due, nor increase wages, it portends the possibility of a harsh response from the populace, unless there is succour in the shortest possible time. LCCI paints gloomy picture Also commenting on the deplorable state of the economy in the past one year, the Lagos Chamber of Commerce and Industry (LCCI) declared that the Nigerian economy suffered severe decline in the past one year of the administration of the current President. The LCCI in a report titled: ‘The Economy After One Year of Buhari’s Administration’ released at the weekend, explained that the woeful outcome of the nation’s economic performance was the result of “the absence of well structured, broad-based and synergised economic blueprint with clearly stated goals, plans, policies and strategies to drive the economy.” The Chamber stressed that the economic policy space remained unclear, adding that the policy conception is faulty, hence, policy coordination and implementation has suffer serious setback. “There is, therefore, urgent need for central policy strategy with detailed and well-designed policy direction. This is critical to effective and efficient coordination and implementation of policy. “While the policy goal of eliminating corruption is laudable, the need for concerted effort on the side of the government with respect to policy, legal and regulatory environments in order to boost private sector participation is highly desirable. “Improving the ease of doing business through efficient business environment vis-
Buhari à-vis effective infrastructure in all facets of the economy. “It is imperative to make very strong moves to resolve the weakening oil revenue and find creative ways of incentivising forex inflow to Nigeria so as to boost liquidity and ease access to forex through alternative sources such as FDI in critical sectors of the economy and diaspora remittances, LCCI stated in its report. Analysing the various declining indices that left the overall economy in shambles in the last one year, the organised private sector body noted that the Gross Domestic Product (GDP) of the country, which stood at 2.35 per cent in May 2015 when the current administration took office, has now crashed to
Analysing the various declining indices that left the overall economy in shambles in the last one year, the organised private sector body noted that the Gross Domestic Product (GDP) of the country, which stood at 2.35 per cent in May 2015 when the current administration took office, has now crashed to -0.4 per cent (negative growth) in May 2016.
-0.4 per cent (negative growth) in May 2016. As for the official exchange rate of the dollar to the naira, in May 2015, $1 exchanged for N197.9, while in 2016 a dollar is N199, but in the parallel market, according to the Chamber, a dollar was N219 in May 2015 but depreciated to about N330 in May 2016. Other indices analysed were the rate of inflation, which according to LCCI, jumped from 8.7 per cent in May 2015 to 13.9 per cent in May 2016. The crude oil output in the country was also found to have dipped significantly, dropping from 2.05 million barrels per day(bpd) in May 2015, to 1.4 million bpd in 2016. For the nation’s external reserves, there was also a decline of $1.25 billion in Buhari’s one year, falling from $29.1 billion to $27.86billion. The Federation Accounts Allocation Committee (FAAC) also had its revenue markedly depleted from N409 billion in May 2015, to N299 billion in May 2016. The stock market capitalisation followed suit in the decline with capitalisation dropping from N11.42 trillion in May 2015, to N8.7 trillion in May 2016. Unemployment figures soared higher during the period, rising from 24.1 per cent in 2015, to 29.2 per cent in 2016. Other statistics analysed by the LCCI included the Business Confidence Index, which tumbled from 7.3 per cent to -8 per cent (negative); Industrial Capacity Utilisation, which fell from 54.9 to 53.7; Ease of Doing Business fell from 170 units to 169 units; Agricultural sector growth fell from 4.7 per cent to 3.09 per cent; Industrial sector growth fell from -2.53 per cent to -5.4 per cent; Services sector growth fell from 7.04 per cent to 0.80 per cent; Aviation passenger traffic dropped from 4.2 million to 3.8 million people; Real estate vacancies index rose from 100 units to 143 units; Power output dropped from 3,205 mw to 2,500 mw; Power available per day dropped from 13 hours to 5 hours and Banks’ bad loans rose from N25.3 billion in May 2015 to N41.5 billion in May 2016. Making recommendations on how to stem the drift, the LCCI stated: “We observed remarkable success in containing Boko Haram insurgency
by pushing them from taking territories and local councils to the fringes of Sambisa Forest. As the final clearing of Boko Haram continues, we urge the government to extend its attention to the growing security breaches coming from groups such as the armed herdsmen and the Niger Delta militants. Businesses and the private sector can only thrive in a peaceful and secure environment. “Anti-corruption war of the present administration should continue unabated and we are happy that emphasis is being placed on recovering looted funds both from within and outside the country. It is our wish that government reviews its processes and put in place reforms including frameworks that would inherently curb corruption. “We welcome Government’s recent removal of subsidy on kerosene and PMS. However, we call for full deregulation of the downstream petroleum sector. This will reduce distortions in the downstream oil industry; eliminate corruption that has marred the sector over the years; increase government revenue whilst empowering the government to fund infrastructure and other social interventions. “We welcome the decision of the Central Bank of Nigeria (CBN) to adopt a flexible exchange rate regime which is desirable in the light of prevailing economic realities. There is however, a need for clarity on what the CBN describes as a special window for critical transactions for which preferential rates will apply. We would like to caution against possible abuse and distortions that such a window could create. On the immediate, relaxing the impediments that will allow liquidity to flow into the autonomous forex market is desirable. “The Budget has been signed into law after about four months of delay. We expect marginal recovery in economic activities as soon as disbursement of capital projects and social intervention programmes start. The 2016 budget assent and implementation should give rise to positive macro environment. However, inflationary impact remains a concern as the presidency will become more practical in its quest to deliver on some critical electoral promises.”
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BUSINESSWORLD
ENERGY LOW OIL PRICES, MILITANCY MAR BUHARI’S FIRST YEAR
controversial Offshore Processing Agreements (OPA), entered into in January, 2015 with three companies, namely- Duke Oil Company Inc., Aiteo Energy Resources Limited and Sahara Energy Resources (Nig) Ltd. At the end of an open, competitive bid, 21 local and foreign companies clinched the 2015/2016 crude oil lifting contracts. Unpaid $7 billion cash calls This administration has marked one without the NNPC finding solutions for the payment of the $7 billion it owed joint venture partners in cash calls. The corporation’s lack of capacity to meet its obligations to the JV partners had led to the accumulation of unpaid cash calls to the tune of $7 billion. Though Kachikwu promised to find solutions to the funding challenges in 2016, it is not yet clear how he intends to achieve this as the debt, which was $6 billion when he came on board is now about $7 billion. Fuel scarcity/partial deregulation Nigerians experienced acute fuel shortages for the greater part of the past one year after one of the perennial acute fuel shortages had erupted immediately after the April general elections. The scarcity almost marred the 2015 Yuletide and 2016 New Year celebrations, despite what seems like the best efforts of the NNPC to curb fuel shortages. With the private oil marketing companies, which account for over 50 per cent of fuel importation shunning imports due to unpaid subsidy claims, the NNPC was faced with the impossible task of bridging the supply gap created by the marketers. Even when the subsidy payment was made through a 2015 supplementary budget, the marketers were confronted with a new challenge of lack of access to foreign exchange to fund importation, hence the fuel scarcity persisted. Though the NNPC directly intervened using
its own foreign exchange, working with the Central Bank of Nigeria (CBN) to give $200 million to some marketers but Kachikwu told THISDAY that the intervention was “just a drop in the Ocean”. The scarcity of foreign exchange forced the federal government to partially deregulate the prices of petrol, increasing the pump price from N86 to N145 per litre. Drop in crude oil prices When Buhari took over on May 29, 2015, the price of crude oil was on a free fall from the June 2014 peak of $115 per barrel until it hit the bottom at $27 per barrel in January 2016, down from $31 in December 2015 As Iran prepared to bring additional 1.5 million barrels per day to the market in 2016 after international sanctions against the country had been lifted, concern that the price volatility, which was initially caused by the impact of Shale oil/gas and the additional inventory in the global market, could worsen heightened. However, the loss of production of 4 million barrels per day as a result of the wildfires in Canada’s oil sands, militant attacks in Nigeria, unrest in Libya, and a near economic meltdown in Venezuela more than offset Iran’s additional inventory and boosted the recovery of crude prices. The recovery of crude oil price was boosted by the loss of production of 4 million barrels per day as a result of the wildfires in Canada’s oil sands, militant attacks in Nigeria, unrest in Libya, and a near economic meltdown in Venezuela. Even though the price has rallied around $50 per barrel, militant attacks, which plunged Nigeria’s output to 20-year low has posed potential threat to the implementation of Nigeria’s 2016 budget, which is predicated on oil price of $38 per barrel. Drop in gas supply to power plants With President Buhari’s first seven months of honeymoon without sabotage of oil and gas
pipelines, the year 2015 witnessed improvement in gas supply to power generating plants. NNPC’s initial report also showing that the plants consumed about 139 billion cubic feet (bcf) of natural gas, out of the 934 bcf produced in the country within the first eight months of the 2015. On daily average, the gas-fired plants received an average of 656 million standard cubic feet per day (mmscf/d), to produce an average of 2,843 megawatts (MW) of electricity per day, thus contributing an average of 84.8 per cent generation capacity to the country’s overall daily power generation volume. Improved gas supply for power generation peaked on February 2, when power generation hit 5,074 megawatts. But after the February subsea bombing of the Shell-operated Forcados Pipeline, generation has continued to nose-dive as sustained attacks by the militants have crippled gas supply to the thermal plants. Delay in prosecuting oil thieves Despite the repeated threats by President Muhammadu Buhari to arrest and prosecute oil thieves, he has ended his one year in office without any high profile arrest or prosecution of oil thieves. In July 2015, when he visited the United States, President Buhari said the United States would help trace and recover funds from the sale of about 250,000 barrels of oil that was stolen daily in Nigeria. Buhari had reportedly told an audience of Nigerians in Washington that the United States and other developed nations were helping identify accounts where money had been deposited, adding that the federal government will prosecute the suspects. He stated that some former ministers sold as much as one million barrels of crude oil a day. “The amount involved is mind-boggling,” Buhari said. “A lot of damage has been done
to the integrity of Nigeria with individuals and institutions already compromised.” Buhari had also during the visit asked the United States’ President, Barack Obama to help locate and return $150 billion believed to have been stolen by corrupt officials. “The fact that I now seek Obama’s assistance in locating and returning $150 billion in funds stolen in the past decade and held in foreign bank accounts on behalf of former, corrupt officials is a testament to how badly Nigeria has been run,” he wrote. “This way of conducting our affairs cannot continue,” he had said. President Buhari had also at a meeting with President Xi Jinping of China on the sidelines of the 70th United Nations General Assembly held in New York, stated that the prosecution of those who misappropriated the revenue of the NNPC under the past administrations would commence soon but was not specific on when the trial would start and those who have been indicted. “The prosecution of those who misappropriated the NNPC’s revenue under past administrations will soon commence,” he had said. But one year into his four-year tenure, this administration has yet to commence the much-publicised prosecution of oil thieves. PIB challenge President Buhari has also ended one year without any significant progress in the passage of the Petroleum Industry Bill (PIB), even after this administration has split the legislation into four parts for easier passage. The non-passage of the PIB eight years after it was first submitted to the National Assembly has continued to create uncertainty in Nigeria’s operating environment. Without the clarity of terms, the IOCs have continued to say that they are unable to invest because the operating environment is unpredictable.
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PROPERTY & ENVIRONMENT UNDP: Access to Renewable, Clean Energy Necessary for Sustainable Development The United Nations Development Programme is supporting the training of women and youths in a community in Abuja in the fabrication of energy energy-efficient fuel wood stoves under the Access to Clean Energy partnership with the Energy Commission of Nigeria. Country Representative of UNDP, Dr. Pa Lamin Beyai says energy access has a critical role in sustainable economic development, reports Bennett Oghifo
E
nergy is essential to meeting basic human needs, said the Representative, of UNDP, Dr. Pa Lamin Beyai. Food production, running water, heat, light and transport, he said are all dependent on energy access. “Poor access to energy has severe impacts on health, quality of life, education and economic productivity.” The UNDP Representative stated this at a two-week hands-on training of women and the youth on locally made metal and clay-based energy efficient wood cook stoves, taking place at the popular Ushafa community in Bwari Local Government Area of Abuja (FCT). Also at the launch of the training, recently, were the Minister of Science and Technology, Dr. Ogbonnaya Onu; the Director General of the Energy Commission of Nigeria (ECN), Professor Eli Jidere Bala; the Chief of Ushafa, the trainees, among other important personalities. According to Dr. Pa Lamin Beyai, the training aims to popularise renewable energy technology, and that it was “designed to help secure multiple environmental and socio-economic benefits, including reduced Green House Gas (GHG) emission from reduced fuel wood consumption, enhanced carbon storage and sequestration, and improve rural livelihood and opportunity for L-R: Country Representative of UNDP, Dr. Pa Lamin Beyai; Minister of Science and Technology, Dr. Ogbonnaya Onu; Director General of the Energy Commission of local development.” Nigeria (ECN), Professor Eli Jidere Bala; and the Chief of Ushafa, Ahaji Mohammed Baba, at the launch of the training of women and youths on the fabrication of He said renewable, clean energy, climate energy-efficient fuel wood stoves, at Ushafa in Bwari LGA, Abuja… recently change, gender equality are key ingredients to the attainment of Sustainable Development and wish you all the best of luck in this noble why I am particularly very happy that today, include the fabrication of eco-friendly fuelwood Goals (SDGs) 2030; which call for collective endeavour.” He lauded Minister for Science and in the great city of Ushafa, I will not call it cookstoves, with the participation of private action towards a more environmentally sus- Technology and the Director General of Energy village, we are interested in making sure that sector for wider jobs creation and economic empowerment of rural women and youth within tainable pathway. He said “When successfully Commission of Nigeria with whom UNDP enjoys we move Nigeria out of poverty.” He said the government expects that at the Bwari LGA for a start. The training will involve completed, this training will be useful towards a very strong relationship. “We assure you of the attainment of three Sustainable Development our collaboration in the actualisation of national end of the training, the participants would 50 youths and women in total, with 25 for a Goals: Goal 5; Achieve gender equality and development priorities and the Sustainable lead the way in the efficient use of energy, start. “The training commenced since Monday adding that they were also expected to take May 23rd to last for two weeks.” empower all women and girls; Goal 7; Ensure Development Goals (SDGs).” Access to modern energy services, he said environment-friendly decisions. access to affordable, reliable, sustainable and The minister said he was convinced that all was a challenge in Nigeria, particularly for rural modern energy for all; and; Goal 8; Promote Minister’s charge to ECN… sustained, inclusive and sustainable economic The Minister of Science and Technology, Dr. the participants would benefit maximally from dwellers. Most rural communities in the country are characterised by limited access to modern growth, full and productive employment and Ogbonnaya Onu said it was important for rural the hands-on training. energy services with majority of the population communities to benefit from the government decent work for all.” heavily relying on traditional, rudimentary Benefits of wood stoves… The training in the rural areas, he said was a in various ways. Onu said “The time has come for the Energy The Chief Executive Officer of the Energy and inefficient renewable energy conversion way of both empowering the beneficiaries with skills that would result in the improvement in Commission of Nigeria to work with other Commission of Nigeria, Prof. Jidere Bala said devices like open-to-sun drying method and agencies within the Federal Ministry of Science the improved wood stoves technologies have the traditional three– stone open fire woodstove quality of lives. “This is a giant and promising step in build- and Technology to ensure that Nigeria plays many advantages over the traditional 3-stove for meeting their drying, heating and needs. ing the capacity of the youth and women of her role and utilise renewable energy efficiently. open fire stoves. These advantages include: These rudimentary and inefficient technologies Ushafa Community and, in the process, conserve The contribution of renewable energy to the Lower operating cost, in terms of time and for cooking with fuel-wood leads to continuous energy and preserve the environment. We would energy mix in the country is something that money, since less biomass fuel would be used felling of trees, desert encroachment and soil arising from higher efficiencies; It particularly erosion, thus, making it unsustainable. In addition, like to congratulate the Energy Commission of has to improve. “We want a situation where we can use our it enhances opportunity for education for the the amount of diseases associated with the use Nigeria for their relentless scientific research in exploring the various sources of renewable coal in energy and power generation. Many girl-child. Traditionally, in Nigeria, the girl-child of biomass fuels for cooking, heating and for countries depend on their coal and our coal has is assigned to fetch firewood for cooking. This lighting have been on the increase with resultant energy for Nigeria. “I cannot overemphasise the importance of very low sulphur content. So, we believe that the project reduces quantity of fuelwood required and deaths, especially among women and children. Quoting statistics, Bala said in Nigeria, this training, which is directed at women and Energy Commission of Nigeria will help us to thus lesser time required in fetching firewood. the youth in the pottery and welding trades. It do more research to see that when we use coal “The girl-child now will have more time to fuelwood cook stoves accounted for more than 80% of the household energy supply is a significant step in building the local capacity it does not hurt our environment. We believe spend on her studies.” Other benefits include, provision of a chimney with attendant large consumption of fuelwood. of the people of this community in the design, that our energy needs are very important in “Therefore policy intervention that will enhance fabrication, and installation of energy-efficient clay the direction that the nation is going; we need means re-direction of combustion emissions away and metal–based wood cook-stoves. In addition to industrialise, we need to produce more than from the operator and thus significantly reduces the dissemination of improved cooking stoves to the usual pots, the training will also introduce we are doing now. So far, we are essentially a health risks to women and children; higher will not only reduce the volume of fuelwood small-scale production of the new design,” Beyai consumer nation and this is not good for our efficiencies means reduced Greenhouse Gas consumed but also will reduce levels of emissions said. He noted that young people, especially country. We need to produce and we cannot (GHG) and toxic emissions in the atmosphere; harmful to human beings and the environment. “Consequently, governments have been women in the rural communities usually have continue to depend on only few sources of energy also, the technology involved in the fabrication limited opportunities for employment. “It is our in the power generation capacity of our nation of these improved woodstoves is simple and working towards addressing rural energy hope that this training will partly alleviate that and I believe that the Energy Commission of rural people can easily fabricate them; reduces access. In the late 1970, the Federal Government by increasing your individual and collective Nigeria will play this very important role to deforestation with its attendant environmental established two Energy Research Centres in University of Nigeria, Nsukka and Usman make sure that we as a nation will be able to consequences. economic and social values.” Bala said the choice of Ushafa Pottery Centre Danfodiyo University, Sokoto, respectively, He urged all participants to make the best meet our own energy needs.” Onu said “President Muhammadu Buhari is was based on the fact that the Centre already which were later transferred to Energy Comuse of the opportunity provided by the training. “For the people of Ushafa Community, we very interested in making sure that the services has local expertise and skills as well facilities mission of Nigeria in 1989, to focus on research recognise and commend your collective interest of government will reach all Nigerians, whether for Pottery, which UNDP and ECN wanted to and development of renewable energy and its and willingness to participate in the training, those who live in urban or rural areas. This is harness and to enhance the existing capacity to technologies.
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PROPERTY & ENVIRONMENT
Kuje Amuwo Chieftancy Lagos NIESV Appeals to Oba Akiolu for Support, Family Takes Possession of Guidance Land at FESTAC Town Minister in the Federation or corners because of unfavourable Valuers’ week in Lagos. Bennett Oghifo
The Kuje Amuwo Chieftancy Family said it has taken possession of a landed property situate at 6th and 7th Avenues FESTAC Town in Amuwo Odofin Local Government Area of Lagos state. A statement by the family said the move followed “the judgement of February 29, 2016 delivered by Justice O. E. Abang of the Federal High Court, Lagos in favour of Kuje Amuwo Chieftancy Family in Oriade Local Council Development Area, Lagos on land case with suit No. FHC/L/ CS/1065/2012 between Kuje Amuwo Chieftancy Family as plaintiffs and Federal Housing Authority FHA, as defendant, and upon the enrolment of the judgement order directing the Sheriffs to carry out the execution of the judgement.” The possession taking, the family said took place last week, and that it was witnessed by Oba Isaac Owolabi Olayemi, the Alamuwo of Kuje Amuwo land, Chief Imam of Kuje Amuwo, Alhaji Mustapha Akinlolu and by all members of the Kuje Amuwo Chieftancy Family, amid heavy police presence, who provided protection. Commenting on the successful possession taking, the General Secretary of Kuje Amuwo Land, Alhaji Mustapha Akanni Akinlolu, said the possession had put to rest fear and doubt created in the minds of those who have bought plots of land in the said land, have developed them and are already occupying their property, as some property owners on the land witnessed the peaceful conduct of the possession taking. Akinlolu, who disclosed that some of the sitting landlords
bought their plots directly from Kuje Amuwo family, assured that “We are not going to demolish any property on the land. But we are asking those who did not buy from us to come and regularise their documents.” According to the General Secretary, the purported land was declared free from the land acquired by the federal government for the purpose of Festival of Arts and Culture, FESTAC 77. The family added that it suddenly realised the arbitrary encroachment on the land by FHA without recourse to the aborigine owner which prompted the family to challenge the encroachment in court, pointing out that the outcome of the matter was the judgement in favour of Kuje Amuwo Chieftancy Family. In the enrolment of judgement order from Federal High Court, Lagos signed by Mrs. O. Y. Thomas, it said “Upon this proceeding coming before the court on February 29, 2016 for judgement, and the court having already heard Chris Okeke Esq. leading Ibrahim Bawa, Chidi Nkocha, H. O. Kazeem and Mabel Kalu for the plaintiffs, argued the plaintiffs’ case dated September 7, 2012. “And the court having also heard Fred Agbaje Esq. leading Adeniyi Pokonu for the defendant vehemently opposed to the plaintiffs’ claims. And the court having considered the facts of the case, the evidence of the plaintiffs and defendant’s witnesses in chief, under cross examination and re-examination and the applicable law on the subject both statutory and judicial.
UNDP: Early Recovery is Critical for Gains of Humanitarian Action to be Sustainable Bennett Oghifo Early recovery is critical in allowing the gains of the ongoing humanitarian action to be more sustainable, as it provides a foundation for resilience, and ensures continuity towards longer-term development objectives. Country Director, United Nations Development Programme, Dr. Pa Lamin Beyai stated this at the launch of UNDP Livelihoods & Economic Recovery Assessment Report for the North East, recently. Beyai said, “It is for this reason that we at UNDP are supporting the early recovery agenda through our coordination role at the country level and through our programming approach.” According to him, “Early Recovery is an approach that encourages humanitarian response to emphasise the importance of re-building community capacity in the midst of a crisis, avoiding dependency, increasing the resilience of affected communities, and looking to solve long
standing problems that may have contributed to the crisis in the first place. “We therefore conducted a livelihood assessment with the aim of gaining systematic and representative information on the socioeconomic situation of the local population, of returnees and the Internally Displaced People (IDPs) settled in host communities. This has given us an impression of the conditions of the affected populations in Adamawa, Borno, Gombe and Yobe states. The assessment, he said revealed the complexities of the hyper local context of each of the 8 Local Government Areas (LGAs) and the 24 assessed Wards and the impact of the conflict for the livelihoods of urban and rural households in the region. The assessment report also demonstrated the diversity of the socio-economic conditions, their coping strategies, as well as the needs and context specific priorities of households. He said when a community or country is hit with a crisis, immediate response was required to save lives.
The Lagos State branch of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) has appealed to the Oba of Lagos, His Royal Majesty, Alaiyeluwa Oba Rilwanu Babatunde Osuolale Aremu Akiolu, to support their quest to provide possible solutions to housing problems in the Lagos. Othe appeals made by the Lagos State branch of the Nigerian Institution of Estate Surveyors & Valuers were that his Royal Majesty should support their struggle for urban regeneration, prevention of building collapse, and they also presented their views on infrastructure inadequacies and decay, among others. The visit, led by the Chairman of the Lagos Branch of NIESV, Mr. Offiong Samuel Ukpong was part of activities to mark the 2016 Estate Surveyors &
The Estate Surveyors informed the Oba that many public infrastructure were depreciating in value because their professional input was not being harnessed by the government. Ukpong said, “Nobody listens to us or takes us seriously and things under our professional competences are daily getting destroyed and eroded and the society and our people are worse for it. “In the Federal Executive Council today, there is no Estate Surveyor and Valuer there. But the Estate Surveyor and Valuer is also a land Economist. Therefore who advises Government on Land matters? “Similar situation is replicated in all States of the Federation. I cannot recall the last time any Estate Surveyor and Valuer was appointed a
Commissioner in Lagos State and asked to oversee issues on land matters, Housing or Physical Assets of the State or the Federation. “Little wonder that our National Assets like stadia are decaying. The Federal Secretariat in Ikoyi has been abandoned. Our public buildings are decaying yet we have the right professionals who can add value to our Assets and sustain them.” The surveyors said they were concerned that there was frequent collapse of buildings in the state, adding that these occurrences were not unconnected with the non-inclusion of their members at the planning and construction stages. They also blamed greedy investors in housing for collapse, saying they build above the level approved for them, adding that some of them were compelled to cut
short-term bank loans. They then warned against the devaluation of the naira, saying it would cause untold hardship in the country, particularly in the purchase of goods and services, adding that about 80 per cent of construction materials were imported. On the regeneration of Lagos Island, the surveyors said “The tiny units of development or buildings can be identified, harmonized or aggregated and developed into multi storey buildings with modern conveniences and facilities without losing the original ownership rights or interest. “There are many areas that are due for redevelopment; most part of the Lagos Island, Shitta area, Iddo, etc. Lagos is a major urban centre in the world, but 30 metres from the major highway, what do we find, rural characteristics.
L-R: Oba of Lagos, His Royal Majesty, Alaiyeluwa Oba Rilwanu Babatunde Osuolale Aremu Akiolu; Chairman, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos branch, Mr. Offiong Samuel Ukpong; and former Chairman, NIESV, Lagos branch, Mr. Stephen Jagun, during a visit to the Oba… recently
NIESV: Government should Subject Underutilised Houses in Abuja to Property Tax Dele Ogbodo in Abuja The President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Bolarinde Patuola Ajayi, has advocated for the introduction of property tax in all underutilised houses built inside Abuja, Lagos and other cities across the country. Briefing some selected media houses in Abuja, Ajayi, said the institution was worried by the huge number of mansions and highrise residential buildings that have remained largely unoccupied in Abuja in the past three years. While canvassing for the introduction of office of the Valuer-General in the country, he said: “Already, we know that there are houses that are vacant for almost three years and beyond in Abuja. “One of the things that we are canvasing is for the establishment of the office of
the Valuer-General where all properties in Nigeria will be identified and domiciled. “There will be assembly of information on such housing stock, of all abandoned properties, which the office will also handle. There should be private developer tax for such houses that are not utilised.” On assets declaration by public office holders, he said the institution’s stand is that the list of all assets declared should have a list of the value attached to it, adding that only members of the institution were recognised to carry out such function. He said: “By so doing there will be no over declaration or under declaration, and this can also be clarified at the Code of Conduct Bureau should any issue arise in terms of location and valuation.” According to him, efforts would be made to reposition
the institution in the next two years through capacity building of members to make them conform to global standard in practice. Ajayi said: “We want to be in tandem with global professionalism practice, framework, code of conduct and standardisation. We also have the aim of lifting up the profession, making it a household name before 2018, as we want every Nigerian to know what Estate Surveyors and Valuers is all about.” He explained that 5,000 registered Estate Surveyors and Valuers in the country for 160 million people was grossly inadequate, adding: “We want to see how to build up these numbers with relevant qualification and training and that they are grounded and capable of representing the institution at various levels.” On the high cost of rent across the country,
the NIESV president said the dynamics of house rent was an interplay of demand and supply in the housing market. “With house rents, regulations have been made many times to reduce rent, the problem of rent control is in the area of demand and supply of housing units. That is what dictates the effectiveness. “There is constant and high demand and the rate at which people come into Abuja and Lagos is high compared to existing housing stock. What we are telling the government is that government at various levels should develop properties even to house its own staff. “If this is done the remaining stock will attract less pressure on demand and rent will therefore fall, the lessee will have no option. Government should, however, give attention to the development of more stock.”
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PROPERTY NEWS
Cost of Adapting to Climate Change Could Hit $500bn by 2050 Fadekemi Ajakaiye The cost of adapting to climate change in developing countries could rise to between $280 and $500 billion per year by 2050, a figure that is four to five times greater than previous estimates, according to a new United Nations Environment (UNEP) report. Released as nations sign the landmark Paris Agreement on climate change, the report assesses the difference between the financial costs of adapting to climate change in developing countries and the amount of money actually available to meet these costs – a difference known as the “adaptation finance gap.” The report, the second in UNEP’s series of Adaptation Gap reports, finds that total bilateral and multilateral funding for climate change adaptation in developing countries has risen substantially in the five years leading up to 2014, reaching $22.5 billion. But the report warns that, despite this increase,
there will be a significant funding gap by 2050 unless new and additional finance for adaptation is made available. “It is vital that governments understand the costs involved in adapting to climate change,” said Ibrahim Thiaw, Deputy Executive Director of the United Nations Environment Programme. “This report serves as a powerful reminder that climate change will continue to have serious economic costs. The adaptation finance gap is large, and likely to grow substantially over the coming decades, unless significant progress is made to secure new, additional and innovative financing for adaptation.” Previous estimates place the cost of adapting to climate change at between $70 to $100 billion annually for the period 2010-2050, a figure based on a World Bank study from 2010. The Adaptation Finance Gap Report, which is written by authors from 15 institutions and reviewed by 31 experts, builds
upon these earlier estimates by reviewing national and sector studies. As a result, the report finds that the World Bank’s earlier figures are likely to be a significant underestimate. The true cost of adapting to climate change in developing countries could range between $140 and $300 billion per year in 2030, and between $280 and $500 billion per year in 2050, it says. Adaptation costs are likely to increase sharply over time even if the world succeeds in limiting a global rise in temperatures to below two degrees Celsius by 2100, the report warns. For higher scenarios of global warming,
estimates of the adaptation costs in developing countries are higher even in early years, the report states. The United Nations Framework Convention on Climate Change (UNFCCC) has called on developed countries to provide $100 billion annually by 2020 to help developing countries mitigate climate change, and adapt to its impacts, such as drought, rising sea levels and floods. However, the UNEP report notes: “There is no agreement as to the type of funding that shall be mobilised to meet this goal. This hampers efforts to monitor progress toward
meeting the goal.” The report further highlights the need for the proper measurement, tracking, and reporting system of adaptation investments, to help ensure that finance is used efficiently and targeted where it is most needed. The report states that, while dedicated climate funds are breaking down the barriers to investing in adaptation projects in developing countries, contributions to these funds are low when compared to the contributions made to funds that mitigate climate change. The Green Climate Fund, which was set up by the UNFCCC, with its stated goal
of splitting funding equally between mitigation and adaptation efforts, is expected to play a significant role in efforts to fund adaptation, the report states. “The adaptation finance gap is large, and likely to grow substantially over the coming decades, unless significant progress is made to secure new and additional finance for adaptation,” the report concludes. “To meet finance needs and avoid an adaptation gap the total finance for adaptation in 2030 would have to be approximately six to 13 times greater than international public finance today”.
FMBN, FHA to Sign MoU on Housing Delivery Dele Ogbodo in Abuja As part of efforts towards solving the 17 million housing deficit, the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA) have concluded arrangements to sign a Memorandum of Understanding (MoU), to deliver a million housing set by President Muhammadu Buhari. The charge came following directive to both establishments by the Minister of Power, Works and Housing, Mr. Babatunde Fashola that the two housing establishments should expedite action on the delivery of affordable housing for Nigerians. THISDAY gathered, that this is part of the resolution reached at a working visit by FMBN and FHA as part of efforts by government to tackle the over 17 million housing gap across the country. In a statement signed by FMBN’s Group Head, Corporate Communication, Mrs. Zubaida Umar, which was made available to THISDAY over the week end in Abuja, said the Managing Director of FHA, Prof. Mohammed Al-Amin noted that both agencies have a long history as a result of the complementary roles they play in the housing delivery chain. FMBN and FHA, the statement added agreed to jointly explore opportunities for housing delivery through a number of on-going housing schemes such as the Accelerated Housing Scheme for selected Ministries Departments and Agencies (MDAs), and the Federal Integrated Staff Housing (FISH) Scheme for federal civil servants amongst others. To add verve to this commitment, both institutions agreed to sign an MOU as a mark of partnership in the joint effort to meet the annual target of delivering 1 million housing units which was set by President Muhammadu Buhari towards ameliorating housing challenges in Nigeria. He pointed out instances where FMBN granted
the FHA an Estate Development Loan (EDLs) to construct over 250 housing units at the Obada-Oko Estate in Ogun State and NHF mortgage facilities granted its subsidiary, FHA Mortgage Bank Ltd., for the funding of mortgage loans at concessionary interest rates. FMBN’s Acting Managing Director/Chief Executive, Mr. Richard Esin identified the funding of mortgages for affordable housing for the Nigerian mass market segment as a key business focus of the bank. To create the required synergy, FMBN is to provide funding for housing development on land banks held by FHA nationwide. He expressed optimism that the collaboration between FMBN and FHA provides the best synergy for delivering housing for the mass market segment of contributors to the National Housing Fund (NHF) Scheme. Both institutions also agreed to jointly explore opportunities for housing delivery through a number of on-going housing schemes such as the Accelerated Housing Scheme for selected federal MDAs, the Federal Integrated Staff Housing (FISH) Scheme for federal civil servants amongst others. Umar said: “To add verve to this commitment, both institutions agreed to sign an MOU as a mark of partnership in the joint effort to meet the annual target of delivering a million housing units which was set by President Muhammadu Buhari towards ameliorating housing challenges in Nigeria. It added that FMBN is established to provide liquidity to the Nigerian mortgage sector and affordable housing to the low and medium income segment. “It collects and manages contributions to the National Housing Fund (NHF) whose resources are deployed for the financing of mass housing construction and mortgage financing on concessionary terms,” Umar said.
L-R: Special Assistant, Technical to Managing Director, FMBN, Mr. A. Tanimu; General Manager, FHA, Maryam Ndalolo; Executive Director, Business Development & Treasury Services, Mr. Ayobola Abiola; Managing Director, FHA, Prof. Mohammed Al-Amin; Executive Director, Loans & Mortgage Services, FMBN, Mr. Charles M. Nyor-Ajiva; Loans & Mortgage Services, FMBN, F. Ogunsakin; Special Assistant to Managing Director, FMBN, Mr. Oladapo Fakeye; and Group Head, Loans & Mortgage Services, Ibrahim Nafada, at the signing of an MoU between FMBN and FHA on housing development in Abuja … recently
SE4All Africa Hub to Provide UN Launches Campaign Technical Assistance to Green Showcasing Wealth of Mini-Grids Developers Climate Action by Investors Fadekemi Ajakaiye The Sustainable Energy for All (SE4All) Africa Hub, hosted by the African Development Bank (AfDB), recently signed a service contract with a consortium of GVEP International and INENSUS GmbH to provide technical assistance to developers of Green Mini-Grids. The SE4All Africa Hub is implementing a Green Mini-Grid Market Development Program (GMG MDP) to facilitate across Africa the creation of a Green Mini-Grid movement and enabling environment funded through the Bank’s Sustainable Energy Fund for Africa (SEFA). To achieve universal access to modern energy by 2030, as prescribed by the SE4All objectives, Africa will require substantial investments into national power grids, off-grid solar home systems, and isolated mini-grids. The GVEP/INENSUS consortium will provide business development services (BDS) to Green Mini-Grid developers, assisting them on a wide range of issues, from business planning, market development and grid design to project finance, grid operation and maintenance. The BDS help-
desk will be operational and open to requests for support from mini-grid developers by July this year. GVEP International, based in London, is a non-profit organization that advises off-grid energy businesses, in order to reduce poverty through accelerated access to energy. INENSUS GmbH is a German consultancy firm for private sector driven mini-grid electrification. ENERSA S.A. and JUMEME Ltd., which was supported earlier through a SEFA project preparation grant, are INENSUS subsidiaries and mini-grid utility businesses supplying electricity from wind-solar-diesel/solar hybrid power systems with battery storage, demand side and load management to customers in rural villages of Senegal and Tanzania, respectively. SE4All Africa Hub Coordinator at the AfDB, Daniel-Alexander Schroth, , stressed that “Mini-Grids are a key piece of the puzzle to solving Africa’s energy access challenge and a priority theme under the Bank’s New Deal on Energy for Africa. We are therefore delighted that we could mobilize with GVEP/ INENSUS an experienced team to provide support to mini-grid developers”.
Climate action by cities and companies and by regions and investors is continuing strongly since the Paris climate change conference with some 50 new actions posted on the UN portal which was set up to showcase private sector and local authority ambition. Ranging from South African hospitals group Netcare Ltd to Dutch banking group ING, the new commitments join over 11,000 already registered on NAZCA -- the Non-State Actor Zone for Climate Action, established in 2014 at the request of the Government of Peru. The news comes as the UN Framework Convention on Climate Change (UNFCCC), which is managing the portal, today also launched a global public awareness campaign to spotlight these game-changing commitments, including the many which are happening in the developing world. For example, the city of Puebla in Mexico committed and registered on NAZCA its aim to reduce emissions by 90% by 2050. And India’s Tata Motors has committed to reduce CO2 emissions by 50% by 2020 and procure 100 per cent of its electricity from renewable sources. It is hoped the new campaign--entitled ‘We’re Accelerating Climate Action’-- will
encourage more entities to consider how they can make climate action commitments working with partners like We Mean Business and data providers to the NAZCA portal including CDP, the Climate Group and ICLEI’s Carbon Registry. Other data providers include Investors on Climate Change; the UN Global Compact; the Covenant of Mayors and the Climate Bonds Initiative. With the next UN climate conference to be held in Morocco in November this year, companies, investors, cities, regions and provinces from the global south and Africa are especially welcome. In the run up to and during the 21st Conference of the Parties (COP21) to the UNFCCC, held in Paris last December, unprecedented momentum was triggered among individual and cooperative initiatives in support of governments and the realizing of the landmark Paris Climate Change Agreement. The NAZCA portal and its registered commitments dovetailed with a range of larger ones showcased under the related Lima-Paris Action Agenda (LPAA)—an initiative of the Governments of France and Peru, the Office of the SecretaryGeneral of the United Nations and the UNFCCC.
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NEWSEXTRA
Buhari to Launch Ogoniland Clean-up June 2, Says Environment Minister Implementation of report is fulfilment of APC campaign promise, says Abe Ernest Chinwo in Port Harcourt The Minister of Environment, Ms. Amina Mohammed, has assured the people of Ogoniland that President Muhammadu Buhari is fully committed to the clean-up of the oil-rich area as recommended in the United Nations Environment Programme (UNEP) Report. She said this yesterday after inspecting a clean-up demonstration site in Bodo, Gokana Local Government of Rivers State, in the company of the Acting Managing Director of the Niger Delta Development Commission (NDDC), Mrs. Ibim Semenitari. As a demonstration of his commitment to the clean-up exercise, the minister confirmed that the president would be in Ogoni on June 2 commence the Ogoni clean-up programme. She said it was fortuitous that Buhari would return to Ogoniland where he had inaugurated a flourishing fish pond in 1984 only to see a fish pond that had been destroyed by oil pollution. “To come back to see that the fish pond is gone is indeed a tragedy,” she lamented. Mohammed said it was not just that the fish pond was destroyed but that the livelihood and wealth
of a people were equally ruined. She said the president was coming to restore hope. She stated: “The federal government is coming back to restore the ecosystem to what it used to be and bring back the source of livelihood for the people.” The minister said further: “We are not just committed to implementing the UNEP report. We are going beyond that to also look at the overall effort to revive the Niger Delta region. We have to get all stakeholders to buy into this project so as to make it sustainable. It is not just a project for the federal government. The states, local governments and communities have a stake.” According to her, the commencement of the clean-up exercise was only the beginning. “What is more important is what happens the days after the flag-off. President Buhari is concerned about the issues of security, good governance and the economy,” she maintained. The NDDC Acting Managing Director, Mrs. Ibim Semenitari, also said the clean-up exercise was a big issue for the interventionist agency, adding that cleaning up the Niger Delta environment was of utmost importance to the commission. Semenitari expressed delight that
the president was coming to Ogoni to demonstrate the importance he attached to the welfare of the people of the Niger Delta and the Ogonis in particular. “President Buhari is acting true to his character as one who keeps promises,” she emphasised. The NDDC boss said Ogonis were united behind the efforts of the federal government to clean up their environment, noting that it would help in ensuring the sustainability of the project. She said that the support of stakeholders was critical for the success of the restoration
programme. The UNEP report, which was released in 2011, advised the Nigerian authorities and multinational oil companies operating in Ogoniland to clean-up the pollution caused by decades of oil exploration activities in the area. It stated that the environmental clean-up and restoration of Ogoniland could take between 25 and 30 years to achieve. Meanwhile, former Chairman of the Senate Committee on Petroleum (Downstream), Senator Magnus Abe, has said the implementation of the United Nations Environment
Programme (UNEP) report on Ogoni land is the fulfillment of the campaign promise of the All progressives Congress (APC). Abe, who is APC candidate for Rivers South East denatorial district in the yet-to-be-concluded legislative re-run election, spoke yesterday at Rhythm FM 93.7 news and current affairs programme tagged: “Talk-of-the-Town,” monitored in Port Harcourt. He said the APC deserved commendation and not condemnation on the implementation of the project. He frowned at a situation
where anytime credit is given to APC and himself for the project, the state chapter of the Peoples Democratic Party (PDP) would say the implementation should not be politicised. He said: “What is disturbing to me now is that now that we are set to implement the report, every time I open my mouth and say something, you will hear people say don’t politicise the report and I ask: what is the politicisation of the UNEP report? Is it the voice of Senator Abe that is now politicisation of the UNEP report?
Petrol Tankers Now to Pay Wharf Fees Lagos sacks revenue collector
Ugo Aliogo Owners of tankers lifting petrol from Lagos ports will henceforth pay wharf landing fees, it was learnt yesterday. Their inclusion in the 305 firms in the payment bracket followed the deregulation of the downstream sector of the petroleum industry. The development came after the expiration of a four-month notice served on Messrs M-TOF
Consulting Services by the Lagos State government to hands off the collection of wharf landing fees on its behalf. The State Attorney-General and Commissioner for Justice, Mr. Adeniji Kazeem, who signed the contract termination notice, said the consultant breached certain clauses in the agreement between it and the government. The notice, served on April 18 and addressed to the Managing Director
of the firm, expired on Thursday, last week. It read: “Your company is hereby given four weeks’ notice of Lagos State government’s intention to terminate the above mentioned contract in line with Clause 22.0 of the executed agreement due to your breach of Clauses 4.6 and 8.3 of the agreement. “Take notice that the said contract stands terminated four weeks from the receipt of this letter.” The government has mandated
the Lagos State Wharf Landing Fees Collecting Authority to take over the functions of Messrs M-TOF. Its Chairman, Mr. Joe Igbokwe, said theauthorityhas304clientsinitspayment bracket. He gave the breakdown as dry cargo (225), bonded terminals (29) and wet cargo customers (50). Heurgedthoseinthepaymentbracket to henceforth route their payments to the state government through the authority, using the designated banks.
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CRIME&PUNISHMENT
Navy: Military will Only Apply Force on N’Delta Militants When Necessary Arrests, hands over five Beninnois to NSCDC, recovers smuggled petrol Chiemelie Ezeobi in Lagos and Emmanuel Addeh in Yenagoa The Flag Officer Commanding (FOC), Central Naval Command (CNC), Yenagoa, Bayelsa, Rear Admiral Mohammed Garba, disclosed yesterday that the fight against militants who have recently resumed the destruction of oil facilities in the Niger Delta would be done ‘rationally.’ Garba told THISDAY that those disturbing the peace of the region were just a minute percentage of the good people of the area, assuring that all those who are innocent should go about their duties without fear. The naval chief who resumed a few weeks ago in Yenagoa, but had worked as the Commanding Officer, NNS Delta in Warri, noted that though the security situation in the waterways remained volatile, the force was working underground to minimise the activities of the renegade group,
the Niger Delta Avengers. “You are all aware about the security situation which is becoming volatile due to the demand of some people who call themselves the Niger Delta Avengers. “So, we as the military are doing what it takes, before we come up with a plan of action. We have patrols and when we have information, we have protected facilities within the resources available to us,’’ he said. On why the military has not come down heavily on the militants, like what it did in the past, where innocent residents reportedly suffered, Garba noted that the force would only apply force when absolutely necessary. “We make sure anybody doing illegality is apprehended and handed over to the prosecuting authority because we don’t prosecute. “The use of military is a matter of rationality. Rationality must come into it. It’s not an act of senseless
passion. It must be directed by its own objectives. Meanehile, operatives of the Nigerian Navy Ship (NNS) Beecroft, yesterday arrested five suspected pipeline vandals with hundreds of 25 litres jerrycans laden with stolen petrol and handed them over to the Nigerian Security and Civil Defence Corps (NSCDC).
The suspects, Agbotou Firmin, Sohe Soule, Gbenou Daniel, Dosspu Vigor and Sodohe Olivier, were handed over to the NSCDC Lagos Commandant, Tajudeen Balogun, alongside one Yamaha 40HP outboard engine, one wooden boat and several recovered products. THISDAY gathered that they were nabbed along Badagry
Creeks in Tongeji Island by naval personnel, while conveying the suspected stolen products on a wooden boat towards Benin Republic. Before the handover, Commander NNS Beecroft, Commodore Abraham Adaji in an interview with THISDAY said the products were believed to be from a vandalised pipeline.
He said during interrogation, the suspects claimed they were fishermen based in Port Novo, Benin Republic and that it was their boss who called them out for the business. He said the suspects were later transferred to NNS Beecroft for custody and further investigation before being handed over to the appropriate authority.
Police Rescue Abducted Iyaloja Yinka Kolawole in Osogbo
Ajibade, noted that the policemen were on the trail of the abductors A prominent business woman and of the woman. He said the victim was taken Iyaloja (head of market women) of Kajola-Ijesa market in Atakumosa to Oluyoro Private Hospital East Local Government Area in Ikire for first aid treatment of Osun State, Alhaja Adunni immediately she was rescued Adegbokun has been rescued and later moved to the Police by men of the Osun State Police Clinic in Osogbo for adequate medical attention. Command. The police boss said that the She was kidnapped by unknown gunmen 10 days ago. business woman was eventually The state Commissioner of handed over to the Iyaloja Police, Mr Olufemi Olanipekun General of Osun State, Alhaja Oyeleye, confirmed that the Awawu Asindemade and that she business woman was rescued has been reunited with her family along Ikire expressway by the members in a better condition. It would be recalled that the police patrol team from Ikire Divisional Police Headquarters. Kajola-Ijesa market has been closed The commissioner who spoke down since Alhaja Adegbokun through the state Police Public was abducted at her residence at Relation Officer (PPRO), Egbedele Araromi Street on May 19.
‘How Soldiers Killed Our Man in Bauchi’ Segun Awofadeji in Bauchi The Bauchi State Police Command has reacted to the shooting at the vehicle carrying policemen at a check point near Panshanu village along the Bauchi-Jos road which resulted in the death of one policeman and the injury of three others on Saturday. Spokesman of the police in Bauchi State, Haruna Mohammed, while reacting to the incident in a statement issued to journalists yesterday said the police officers were stopped at the road block, searched by the soldiers and were permitted to go contrary to the assertion by the military that the shooting was triggered by their refusal to stop for checking. “The vehicle was searched and allowed to proceed but all of a sudden, one unidentified soldier attached to the 33 Artillery
Brigade, Bauchi opened fire and shot at the bus from the rear glass and escaped. As a result, one Bwala Mohammed, a police constable, died on the spot while three others sustained various degrees of injuries. According to him, it took the intervention of a combined security forces to restore normalcy in the area as other motorists and pedestrians went on rampage and blocked the road to protest against the soldiers over the obnoxious event. He stated that the scene was visited by police patrol team led by the Divisional Police Officer (DPO) of Toro Local Government Area to ascertain the actual cause of the incident, adding that the corpse of the deceased was deposited at the mortuary for postmortem examination while the wounded officers are being treated.
SYMPATHY VISIT
L-R: Chairman, Baboko Market Men and Women Association, Alhaji Abdulrasak Lasoju; Chairman, Ilorin West Loval Government Area, Alhaji Tajudeen Sulu Oloje; and Kwara State Governor, Dr. Abdulfatah Ahmed, when the governor paid a sympathy visit to Baboko Market gutted by fire....yesterday
OPC Advocates Self-defence against Marauding Herdsmen
Court to Hear Suit against Japaul Energy on June 8
James Sowole in Akure
The Federal High Court has adjourned a suit by a company, AYM Shafa Limited, against Japaul Energy Limited over its alleged failure to repay a N153million debt. AYM Shafa, in a petition, is praying that Japaul Energy be wound up for being insolvent and unable to pay its debts. The petitioner said it paid Japaul Energy N153,200,000 for the supply of two million litres of petrol to be delivered between last October 5 to 12. AYM Shafa said Japaul Energy claimed that the product was already on ground in a tank farm in Calabar, adding that the contract was entered on the assumption that the product was available for supply. The petitioner, through its lawyer, Chris Ekemezie, said Japaul Energy failed to supply the product despite repeated demands. It said when it got to the tank farm, it discovered that Japaul Energy had no petrol stored. AYM Shafa said after two months of the respondent’s failure to supply the product, it demanded a refund of the money; Japaul Energy, it said, promised to “process” and make the refund. “Despite this undertaking to refund the money and several other oral and written entreaties, three months after, Japaul Energy still has refused, to do so, thereby
Disturbed by the failure of President Muhammadu Buhari to address how to solve the menace of herdsmen in his Democracy Day broadcast, the National Coordinator of the Odua Peoples Congress (OPC), Mr. Gani Adams, yesterday advised community to devise means of defending their farmlands and community against destruction. The OPC coordinator suggested the move at a lecture he delivered at the secretariat of the Nigeria Union of Journalists (NUJ), Alagbaka, Akure, the state in commemoration of Democracy Day. Adams who was visibly unhappy with the president’s lukewarm attitude on the incessant attacks on communities, said collective efforts are necessary to curb the menace. In the lectured titled; ‘Herdsmen/Farmers Clashes: What implication for inter-ethnic Relations, Nigerian Economy,’ Adams stated that everybody in the communities should be vigilant and resist the invasion of the hoodlums in their areas. “I won’t say anything more than the fact that every community should be able to defend itself. If you have black power to defend yourself, I don’t see the reason you can not use it when there is
a need for you to use it. “The traditional rulers should look for ways to defend their communities, we can not rely on police again because police has limit to curb the herdsmen attack because they have to defend their jobs,” he said. He noted the OPC was being tactical in fighting for the interest of the Yoruba race, stressing that the congress had been reformed and had credible citizens as members. Adams, who blamed President Buhari non committal attitude herdmen’s activities in the South, said the only way out of the security challenge was for the President to implement the recommendation of the 2014 National Conference. He noted that the matter was one of the issues that was discussed at the 2014 Constitutional Conference even when the destructive activities was not as much as what we have now. He said recommendation of the conference had proffered solution to the matter among other issues. “The only way to end this security crisis is for the President to implement the confab report. A good leader should be able to seek ways to develop his country. “The president should find solution the problem in the Niger Delta and other parts of the country, we are not praying for the break up of this country.”
putting the petitioner in a financial quagmire,” AYM Shafa said. The petitioner said it learnt that Japaul Energy never had the product on ground to supply, contrary to its “misrepresentation.” AYM Shafa’s Depot Supervisor Isyaku Yahaya, in a counteraffidavit, said: “I know that the applicant is indebted to a lot of companies as well and not just to the petitioner. The only reason it has failed to pay back the money is because it is insolvent and incapable of paying its debts.” But, Japaul Energy said it is “very solvent given her various ongoing transactions with customers across Nigeria.” It said the money in its bank accounts “are far more than the amount of money involved in the contract” The company said there was only a delay in supplying product and it was not a case of inability to pay debt. “Due to the prevailing conditions of petroleum products scarcity as is well known in the public domain, the respondent/ objector could not meet up with the supply of the product within the time agreed by parties,” Japaul Energy said. Justice Ibrahim Buba adjourned till June 8 for settlement or definite hearing should Japaul Energy fail to pay the debt.
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NEWSEXTRA
Curfew Imposed on Pandogari, Niger after Religious Violence The killing of Mr Methodus Chimaije Emmanuel, a 24-yearold trader based in Pandogari, Rafi Local Government Area of Niger State on Sunday evening by a mob in the town over allegation of posting a
blasphemous statement about Prophet Muhammad on the social media has shut down the town. The incident led troops of 31 Artillery Brigade of the Nigerian Army on operation MESA to quickly intervene and restored
Use More Intelligence, Host Community Collaboration to Locate Avengers, Buhari Told Ahamefula Ogbu President Muhammadu Buhari has been asked to focus more on intelligence gathering and collaboration with host communities in identifying the location of the resurgents Niger Delta Avengers who have been taking credit for blowing up pipelines and grinding oil and gas production of the country to a halt. Chairman of Grassroots Initiative for Peace and Social Orientation and one of the facilitators of the amnesty programme, Mr. Richard Akinaka, who condemned the renewed attacks as not representing the intention and interest of the Niger Delta blamed it on protection of individual business interests of some unscrupulous people from the region. To avoid collateral damage and hurting innocent, villagers whose lives he said had been battered by neglect and lack of development, Akinaka said soldiers should desist from mass arrest but focus on identifying where the Avengers were located and take them out. According to him, “What is happening in the region does not reflect the common interest of the people of the Niger Delta. It is orchestrated by few disgruntled people for their selfish interests.
We just finished six years of a presidency headed by one of us, former President Goodluck Jonathan, why didn’t the Avengers carry out their agitation during his regime? We produced a president who did nothing in six years to better the lot of his people, not even the road to Otuoke was touched under him while the East-West Road was left undone; so what justification do they have to protest now? “Those breaking pipelines do not have a moral right to agitate under the government of President Buhari. If they wanted to agitate for an independent republic, they should have done it under Jonathan. Nobody in the Niger Delta has a point to agitate just a year into another administration. If they wanted a separate republic, they had all the time to achieve it under one of their own, so coming now to ask for a separate Niger Delta state beggars the question. “What the security agencies should do is more of intelligence gathering to get to the people behind the Avengers which I think is a fluke. It is a ghost name people are hiding under to pursue personal interests and ambitions. They should avoid arrest of innocent villagers and treating the region like an occupied territory.”
PDP is Uniting all Factions, Says Egoh Sunday Okobi A federal legislator representing Amuwo-Odofin federal constituency in Lagos State, in the House of Representatives, Hon. Oghene Egoh, has hinted that the Peoples Democratic Party (PDP), which he described as the most democratic party in Africa, will unite all factions and move the party forward against 2019. Egoh stated this last weekend when he inaugurated the executives of the party congress held at his constituency in Festac Town, Lagos, adding that the occasion was also to formalise the party congress executive as the Commissioner of Oaths was there to swear them in. According to him, “In a big party like the PDP, where there is democracy, there will always be babel of forces. People will wish to agree to disagree. As we stand here, agreements have being reached in Abuja and decisions have been reached. Therefore we hope that in the next one week we will have Marakafi administering the party, while all faction will
be united to move the party forward.” He added that presently, negotiations are ongoing in the party, “we still have to talk to Ali Modu Sheriff, and I am sure the party will be settled. This shows that the PDP can settle itself because the party is a great party. “It is the only party that does not have a president but still unites all the various units in the country which have divergent views. We are not worried about the factions in the party, anybody can stand and say he is a leader but we will all be united soon.” On the inauguration of executives who emerged in the constituency congress, Egoh said: “I am delighted that you are here for the inauguration of the executive which emerged through the congress. The election has been held long ago at the time the party stipulated that the congress should be held, the people here all bought forms and formal congress was formed. “The police and Independent National Electoral Commission (INEC) have signed the result.All we are doing today is to formalise it by calling the Commissioner of Oaths to sworn them in.
law and order while a dusk to down curfew was imposed in the town. However, yesterday the rioters embarked on further violence, looting of shops and blocking the Lagos-Kaduna Road, a major artery connecting the northern and southern parts of the country. Again, troops in conjunction with the personnel of the Nigeria Police and Nigeria Security and Civil Defence Corps (NSCDC)
took control of the situation to forestall escalation of violence and any threat to the peace in the town. One church, house and a shop were burnt while 25 other shops were looted following the violence. Three other persons including a personnel of the NSCDC also lost their lives. Some arrests were made in connection with the violence
and the suspects handed over to the the police. The military and other security agencies are currently embarking on confidence building patrols in all nooks and crannies of the town. As part of the measures to de-escalate tensions and ensure a lasting peace in the town, the military said it is working with the local government council
authorities and community leaders, including the Kagara Emirate Council to pacify all aggrieved parties and build on the peace so far established. It said it would continue with its current non-violent approach to maintaining peace in Pandogari town and would not take kindly to any unscrupulous element who would attempt to visit violence on innocent and law abiding persons.
SETTING AGENDA FOR ENELAMAH
L-R: President, American Business Council (ABC), Dr. Lazarus Angbazo; Minister of Industry, Trade and Investment, and Guest Speaker, Dr. Okechukwu Enelamah; and ABC Consultant, Mr. Kunle Olumide, during the ABC breakfast session on the ‘Industry and Trade agenda of the federal government’ in Abuja...recently
Okorocha Distances Self from Presidential Posters in Abuja Amby Uneze in Owerri Imo State Governor, Chief Rochas Okorocha, has denied his posters with Governor Kashim Shettima of Borno State for the 2019 Presidency which have flooded the streets of Abuja and other Northern states, describing it as the handiwork of his detractors. In a statement signed by his Chief Press Secretary, Sam Onwuemedo, the governor said he sees the posters as another mischief by some mischievous elements cowed by his monumental achievements in Imo and what he represents in the politics of the South-east and Nigeria in general today. According to the statement, those behind this mischief first invaded the social media with the fake posters but when they discovered that Nigerians doubted the source and the genuineness of the posters, they decided to paste them in Abuja. “On the part of the Imo State Governor, it is very difficult to capture what the folks behind this pettiness want to achieve or what must have prompted them, in the first place. Soon after the 2015 election, and knowing the leading role Governor Okorocha played in the South-east that put the PDP field commanders on their toes, which prevented them from returning the kind of election figures they had returned in 2011 in the zone, and knowing that by virtue of that key role, Okorocha should
expectedly reap largely from the President Muhammadu Buhari’s government, they began their campaign of calumny against him. “Since then, they have never left any stone unturned to ensure that they put a knife in the enviable relationship existing between the President and Governor Okorocha. Their latest unfortunate outing is the posters in question. Interestingly, Okorocha has for some times now been reported to have told those willing to hear that he won’t run the 2019 presidential election because of President Buhari. And by repeatedly saying that, he succeeded in disarming the little minds that had used that issue to blackmail him. “And now they have begun to publish about Okorocha being the Vice-Presidential whatever to Governor Shettima. And for the sake of exposing these petty minded fellows one can ask whether if Rochas and Shettima want to run election they would begin in 2016 to paste posters for 2019 election and when both of them are sitting governors. The truth is that the posters were neither here nor there. And nobody would believe them. We only ask God to give those behind the posters the right spirit. People with the right spirit cannot engage in such debilitating act. Only the poor in spirit could do that. And they have our sympathy,” he stated. Okorocha noted that he is
not known for double-standards as he had already made it clear to all Nigerians that he won’t run for the presidency in 2019 because of President Buhari. He maintained that he
would ensure that the president succeeds, warning those behind the posters not to distract the system and join hands with President Buhari to bring Nigeria out of the woods.
Spanish Embassy Partners Lagos Photo to Organise Exhibition Ugo Aliogo The Embassy of Spain in Abuja will hold the second edition of the photojunctions in collaboration with Lagosphoto on June 2 by 6.30p.m at Thought Pyramid Art Centre in Abuja. According to a statement issued by the organisers, the second edition of PhotoJunctions with LagosPhoto is being organised by the Spanish Embassy in Abuja, the French Embassy in Abuja, the French Institute in Nigeria, the Thought Pyramid Art Centre and in partnership with LagosPhoto Festival, adding that “the event is being sponsored by the Nordic Hotel.” The statement also stated that the event is aimed at fostering the cultural agenda of the Federal Capital Territory (FCT) while promoting the fast growing field of photography in the capital city. The statement further explained that it is also an opportunity for the photographers to exchange
concepts and approaches and a window to showcase what is being done both in the country and abroad in the practice of photography. The statement said: “As part of the activities for this year’s event, the Thought Pyramid Art Centre will be hosting the photo exhibition designing futures from June 2 to 10. During the opening of this exhibition, we will be launching the book Africa under the Prism, contemporary African Photography, published by LagosPhoto. From the June 4 to 10 French photographer Sami Trabelsi will be facilitating a masterclass with Nigerian photographers.” “The panelists include Director of the Centre for Contemporary Art (CCA Lagos), Ms. Bisi Silva, Founder of Photo Garage Lagos, Mr. James Uche Iroha, journalist and photographer, Ms. Chika Oduah, and French photographer Mr. Sami Trabelsi. The round table will be followed by a discussion with the panelists,” the statement noted.
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TUESDAYSPORTS
Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com
I N T E R N AT I O N A L F R I E N D LY
Eagles Set to Fly against Luxembourg Nigeria’s Super Eagles look forward to another victory when they take on the Red Lions of Luxembourg at the Stade Josy Barthel tonight. A young and vibrant side prevailed over one of Africa’s strongest teams, Mali, at the Stade Robert Diochon in Rouen, France on Friday, with England –based Kelechi Iheanacho scoring the only goal 13 minutes from time. The team spent longer than the 40 minutes that was earmarked for Sunday’s first training session, shaking off travel fatigue and generally enjoying the atmosphere under a light rain shower.
Yesterday morning, defensive midfielder Wilfred Ndidi arrived the team’s Alvisse Parc Hotel camp in Luxembourg City, bringing the number of players in camp to 21. Midfielder Babatunde Michael, who flew to Morocco after the clash with Mali to be on duty for his club, Raja Casablanca, was being expected in Luxembourg city last night. Former U-17 and U-20 star Ndidi, who helped his Belgian club, KRC Genk to qualify for the UEFA Europa League following a 5-1 defeat of Charleroi on Sunday, could start in midfield alongside stand –captain Ogenyi Onazi and Shehu Abdullahi.
Coach SalisuYusuf and assistants are also likely to start Turkey –based defender Kenneth Omeruo in central defence, and South Africa –based goalkeeper Daniel Akpeyi may start in place of Carl Ikeme as the coaches intend to take a look at all the players in camp. Ikeme, Musa Mohammed, Kingsley Madu, Leon Balogun, William Troost Ekong, Shehu Abdullahi, Onazi Ogenyi, Etebo Oghenekaro, Moses Simon, Odion Ighalo and Alex Iwobi started the game against Mali, with Gbenga Arokoyo, Kelechi Iheanacho, Raheem Lawal, Aminu Umar and Brown
Ideye coming on in the second half. Luxembourg have scored only four goals in their last 10 matches, whilst conceding 20. But Coach Yusuf said his boys would not under –rate the Europeans at the Stade Josy Barthel. “There are no longer small teams in international football. You could get a sucker punch if you under –estimate any team. We
will go out there and play to win.” Luxembourg, coached by Luc Holtz, will rely on the fast breaks of winger Daniel Alves da Mota and the potency of Stefano Bensi in attack. Bensi scored 21 goals in the Luxembourg Premier League in the just –ended season. But there is also David Turpel, who netted 26 goals in 32 matches for Fola Esch in the Luxembourg
top flight. The Red Lions have won only two of their last 10 matches, beating Macedonia 1-0 in a Euro 2016 qualifier in September 2015 and Greece by the same margin in a friendly two months later. Their last match, a friendly against Albania in March this year, ended in a 2-0 defeat for the Lions.
N F P L M I D - S E AS O N T R A N S F E R
Ebele Obi in Dramatic Transfer to IfeanyiUbah FC Heartland goalkeeper Ebele Obi is in talks with FC IfeanyiUbah in what could well be the most dramatic transfer in the Nigeria league so far after he was sensationally assaulted by the owner of the Nnewi club recently. Ebele Obi, older brother of Chelsea star Mikel, and billionaire Ifeanyi Ubah were both sanctioned by the league for incidents after a recent league
game. The goalkeeper was punched by the FC Ifeanyi Ubah owner after he attacked the referee. The Heartland shot stopper has already called off a plan to sue Ifeanyi Ubah. But AfricanFootball.com can now confirm that Obi could have a transfer sealed with the Nnewi club “in days”, with the goalkeeper available for their weekend trip to face Niger
Tornadoes. “Ebele Obi has been discussing with Ifeanyi Ubah over a potential move and he was in Nnewi yesterday and the deal could be completed in the next few days,” a source informed AfricanFootball.com The ‘Anambra Warriors’ have already completed the signing of former Golden Eaglets skipper, Fortune Chukwudi.
R-L: Group Head, Strategic Brand Management, Access Bank Plc, Amaechi Okobi, Special Adviser to the Lagos State governor on sport , Deji Tinubu, Captain, Cycology Riding Club, Ladipo Soetan and Cycology Riding Club member, Bayo Ogunnusi, at the Lagos criterium race in Lagos, yesterday.
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WEEKLY PULL-OUT
‘PARTNERSHIP REQUIRES TRUST, HONESTY, INTEGRITY, PERSEVERANCE AND TO T OTAL OTAL TOTAL COMMITMENT TO PRACTICE’ Chief Gabriel Nkadi Osakwe
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The Death Penalty is not the Solution to Kidnapping in Nigeria Oluwatosin Popoola
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arlier this month the Senate approved a proposal to introduce a bill that will make kidnapping punishable by death. Many commentators have welcomed the decision arguing that the death penalty will deter the increasing number of kidnappings in the country.
They are wrong. Kidnapping has reached epidemic levels in Nigeria and whilst the need for the federal government to fight this crime effectively has never been more urgent, the death penalty is not the solution. The reason for this is that there is no credible evidence that the death penalty deters kidnapping - or any other crime for that matter. Scientific studies have consistently failed to find convincing evidence that the death penalty deters crime more effectively than other punishments. A series of authoritative studies conducted for the United Nations in regions around the world have repeatedly found that the death penalty does not have a greater deterrent effect on crime than a term of imprisonment. In 1970 the military government of General Gowon introduced the death penalty for armed robbery in response to the alarming increase of the crime in Nigeria. This did not solve the problem, in fact armed robbery is as common today as it was then. Equally, the enactment of the Terrorism (Prevention) Act, 2011 and the Terrorism (Prevention) (Amendment) Act, 2013 – introducing the death sentence for terrorismrelated offences has not curbed the problem in Nigeria. According to a Global Terrorism Index published by the Institute for Economics and Peace, in 2014 Nigeria witnessed the largest increase in terrorist-related deaths ever recorded by any country, increasing by over 300 per cent to 7,512 fatalities.
Over the last three years a number of states – including Bayelsa, Delta and Edo – have made laws prescribing the death penalty for kidnapping; however this has not stopped the practice. This year alone has seen high profile kidnappings of former President Goodluck Jonathan’s uncle in Bayelsa state, His Royal Majesty Josiah Umukoro in Delta state and Hassana Garuba, a magistrate in Edo state. Whilst the senate has the constitutional mandate to enact laws, making kidnapping a capital crime will breach Nigeria’s obligations under international human rights law. The International Covenant on Civil and Political Rights, which Nigeria became a party to in 1993, permits countries that have not abolished the death penalty to use the punishment only for the “Most Serious Crimes”. Under international human rights standards “Most Serious Crimes” are crimes that involve intentional killing. Kidnapping does not meet this threshold. The death penalty is a violation of the right to life as declared in the Universal Declaration of Human Rights. It is the ultimate cruel, inhuman and degrading punishment. Everyone has the right to life regardless of the nature or circumstances of the crime they have committed. This does not mean that criminals should not face justice, and punishment, for their crimes. They should, the federal and state governments have a range of options they can legally use, including prison terms. The federal government should immediately take steps to address the root causes of kidnapping and other crimes by dealing with the high unemployment in the country and ensuring that the Nigeria Police Force and other crime fighting agencies are well funded, trained and equipped to deal with crime. Good investigation into alleged crimes, timely arrests of suspects and effective prosecution will go a long way in reducing kidnapping and other crimes. The world is moving away from the use of the death penalty. In 1977 only 16 countries had abolished the punishment for all crimes. As of today the number stands at 102 countries,
a majority of the countries in the world. In 2015, four countries, including Madagascar and the Republic of Congo both in Africa, joined the ranks of countries that have consigned this cruel punishment to history. Expanding the scope of the death penalty goes against this positive global trend and will further entrench Nigeria amongst a minority of countries that hold on to the death penalty. Executing kidnappers is not the solution
to ending the scourge of kidnapping in Nigeria. Rather it is a knee-jerk reaction by a government that wants to appear tough on crime. Instead of being a form of toughness, recourse to the death penalty is in reality a symptom of failure in governance. Rather than expanding the death penalty, the Senate should abolish it altogether. Oluwatosin Popoola is Amnesty International’s Advocate/Adviser on the death penalty
‘PARTNERSHIP REQUIRES TRUST, HONESTY, INTEGRITY, PERSEVERANCE AND TOTAL COMMITMENT TO PRACTICE’ CONTINUED FROM PAGE 9 among many other reasons, a shortage of gas feedstock, a failing transmission network and an excessively difficult business environment which forces the cost of doing business up. How can the government effectively resolve this issue of power production and distribution? The issue of power production and distribution to my mind, can be resolved by removing power from The Exclusive Legislative List into the concurrent list and by privatisation of both production and distribution. The Minister of Industry, Trade and Investment Okey Enemalah recently requested that the National Assembly review certain business laws to position the country as a more attractive destination for foreign investment. His statement was made in view of Nigeria’s low ranking in the current World Bank ‘Ease of doing business’ ratings. What laws, if reformed, would yield benefits in enabling and improving the ease of doing business here in Nigeria? The laws to be reformed would include the Companies and Allied Matters Act, The Nigerian Investment Promotion Commission Act, The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, The Immigration Act, The Company Income Tax Act, The Customs and Excise Management Act, The Investments and Securities Act and The Central Bank Regulations (dealing with Certificate of Capital Importation). There has been a significant increase in the number of parties that refer their disputes to Arbitration thereby leading to a corresponding increase in the proliferation of Arbitration organisations. However there appears to still
be much room for growth in the use of Arbitration as a dispute resolution mechanism. Could you enlighten us on the possible challenges affecting the growth of Arbitration and ADR in Nigeria? In your view how can these challenges be surmounted? The main challenge we have is in the area of training and awareness. A large number of lawyers still perceive arbitration as a prelude to litigation. Nowadays, almost every lawyer who has an award against his client jumps to the court to have it set aside, even when it is obvious that there is no merit in their application. In so doing, they also have the award locked up in court for as long as the matter would be, if they had gone to court in the first place. That mental attitude has to be done away with and one of the ways is for the arbitral institute to train and retrain users of arbitration, in order to have the right orientation towards arbitration. That is the only way we can surmount the challenges facing arbitration. For the steady advancement of international arbitration Nigerian courts have to demonstrate the willingness to enforce foreign arbitration awards and a procedure of enforcement that is straightforward and seamless. These are important considerations for potential parties to Arbitration. In that light how would you assess the process for the enforcement of foreign arbitral awards in Nigeria? In order to have a seamless and straightforward enforcement of any award (be it domestic or foreign) the courts have to ensure that matters before it are disposed of expeditiously. In that process, enforcement
can be disposed of without any delay. There are reports that the Ondo State chapter of the JUSUN has begun an indefinite strike due to the alleged failure of the state government to honour an agreement reached on the financial autonomy of the judicial arm of government. Previously, Justice Adeniyi of the Federal High Court held that the 36 state governors and the FCT should comply with the constitutional provisions on financial autonomy for the Judiciary. What are your views on the failure to comply with this decision of the court by some state governments? Failure to comply with the decision of a court of competent jurisdiction by some state governments is executive rascality. The Capital Market is one of the foremost institutions for driving economic development in any country. What is your assessment of the regulatory environment in the Nigerian capital market? The regulatory environment in the capital market as created by the former D.G. of the
"WHERE THE ALLEGATION OF WRONG DOING AGAINST A JUDGE ON THE FACE OF IT HAS MERIT, THE JUDGE SHOULD GO ON SUSPENSION UNTIL THE MATTER IS RESOLVED"
SEC Ms Arunma Otteh, got us out of the woods when the Capital Market crashed before she took over. I hope what she did will be sustained and improved upon by the new D.G. For instance, learning is key to the success of any institution. Now, you have the SEC organising periodic seminars for the operators. Under Otteh, the entrants into the market now take examinations, to ensure that operators are well grounded in the industry, unlike before, when it was just done by referral from members. Having had an illustrious career in the law since qualifying in 1972 what would you say is your most defining moment? My most defining moment is the establishment and successful running of the partnership called, Sofunde, Osakwe, Ogundipe & Belgore. The legal profession is indeed a tasking profession. The Section on Business Law under Mr. George Etomi held sessions on health for lawyers, including testing for high blood pressure. As an avid golfer how has the game helped you relax away from the law and what advice will you give lawyers who find themselves unable to find time for sporting activities? As the issue of high blood pressure is on the rise. Golf has helped me tremendously in relaxing away from the practice of law. My advice to lawyers in our hectic business is to always find time to exercise. Congratulations on your 70th birthday. What do you see the future holding for you as you consider retirement? As I consider retirement I hope to be able to play more golf in the best golf courses in the world.
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The Power of the National Industrial Court A Review of ALOYSIUS v DIAMOND BANK Efe Etomi and Elvis E. Asia
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he last has not been heard of the monstrosity created by the Third Alteration to the 1999 Constitution- the National Industrial Court (NIC). The decision of the Court in ALOYSIUS v DIAMOND BANK PLC (2015) 58 N.L.L.R (Pt.199) 92 calls for a rekindling of the argument on the propriety or otherwise of vesting ambiguous jurisdictions on the NIC and the creation of a court of unquestionable jurisdiction by the constitution. A fundamental principle of our labour law is (except in cases where an employment has statutory flavour) an employer or the employee can terminate the employment with or without reasons subject to appropriate notices or payment in lieu. Dismissal on the other hand must be justified because it results in the loss of terminal benefits and public opprobrium. This common law position has been restated by the Supreme Court in many cases and is given some statutory expression in sections 7 (1) (e) and 11 of the Labour Act which provide that the only requirement for termination is serving the appropriate notice on the employee and that employment contracts must state the notice period. It is also settled law that the terms of employment form the basis of the consideration of the rights of the parties including issues such as termination and dismissal. The Aloysius’ case has however introduced a new dynamic to our labour law. In that case, the NIC per F.I. Kola-Olalere held that the practice of terminating employment without stating reasons is contrary to ‘International Best Practices and Labour Standards’. The court consequently invoked section 254C (1) (f) and (h) of the 1999 Constitution as amended which confers jurisdiction on the NIC in matters relating to or connected with unfair labour practice or international best practices in labour, employment and industrial relation matters and relating to, connected with or pertaining to the application or interpretation of international labour standards. For a better understanding of the issues, it is necessary to set out the decision of the court. At page 134 and 135 paras. A-B the court held: “…the Termination of Employment Convention, 1982 (No. 158) and the Recommendation No. 166 regulates termination of employment at the initiative of the employer. Article 4 of this Convention requires that the employment of an employee shall not be terminated unless there is a valid reason for such termination connected with his capacity or conduct or based on the operational requirements of the undertaking, establishment or service. The Committee of Experts has frequently recalled in its comments that; the need to base termination of employment on a valid reason is the cornerstone of the Convention’s provisions. This is the global position on employment relationship now. It is the current International Labour Standard and International Best Practice. Although this convention is not ratified by Nigeria; but since March 4, 2011 when the Constitution of the Federal Republic of Nigeria, 1999 (Third Alteration) Act, 2010 came into effect, this Court has the power under the Constitution to apply International Best Practice and International Labour Standard to matters like this by virtue of section 254C (1) (f) and (h) of the constitution as amended ...I find that it is now contrary to international labour standard and international best practice and, therefore, unfair for an employer to terminate the employment of its employee without any reason or justifiable reason that is connected with the performance of the employee’s work….I hold that it is no longer conventional in this twenty first century labour law practice and industrial relations for an employer to terminate the employment of its employee without any reason even in private employment” It is conceded that our labour laws are archaic and that there is urgent need for review. Could the framers of the constitution have intended to vest this responsibility on the NIC without restrictions? To what extent can the provisions of section 254C (1) (f) and (h) be relied on by the court to achieve this end? Does this provision give a blanket cheque to the NIC to fish out any ‘International Best Practice and International Labour Standards’? The decision of the court seems to erroneously suggest the affirmative. The decision of the court represents an audacious attempt at providing remedy to the inadequacy of our labour law particularly as it relates to unfair dismissal. However, it is faulty on many grounds. In the first place, throughout the trial and arguments of the parties in the case, the concepts of International Best Practice or Labour Standards were not in issue. The court introduced the terms in its judgment. The court’s invocation of the concepts violated a fundamental bulwark of our law which is to the effect that a court must afford the parties fair hearing when it raises an issue suo motu. The implication of this is that without hearing arguments on the concepts vis a vis their application to the case before it, the court attempted to change the frontiers of our labour laws as we know it. This is a great disservice to our legal jurisprudence. Secondly, it is submitted that for the court to have jurisdiction to consider International Best Practice and Labour Standards under the constitution, the claim before it must have been made on those grounds. The matter must be related to or connected to or pertaining to the said international best practice or labour standards. It must be appreciated that the
provisions of section 254c (1) which confers jurisdiction on the court cannot be exercised when the parties or the matter before it has not activated it. This is important because it will afford the parties the opportunity to address the court on the applicability of best practices or labour standards relied on. The claimant in this case did not predicate any of his claims on international best practice and labour standards. The court obviously misread the import of section 254C (1) (f) and (h) in introducing the concepts and making a finding on it. International Best Practice or International Labour Standards within the section and our law generally are matters of fact which must be proved and not law. The above posture of the NIC in this case poses dangers to the sovereignty of Nigeria and the powers of the National Assembly to make laws. It is unthinkable that the framers of the constitution intended to vest the NIC with jurisdiction to make laws on labour by invoking international best practice or labour standards which may be contrary to our law or the contract between the parties. A vague reference to international best practice or international labour standards cannot elevate a court to the pedestal of a law-making institution. More importantly, the decision of the court is not founded on the Constitution when read as a whole. This is because the court in purporting to apply the concepts of international best practice and labour standards relied on a Convention which it found was not ratified. Under section 254 (2) of the Constitution as amended, the NIC can only apply the provisions of conventions which have been ratified and enacted into law by the National Assembly in line with section 12 of the constitution. Section 254C (1) (f) and (h) cannot by any stretch of imagination confer jurisdiction on the NIC to ratify and domesticate international Conventions that Nigeria as a sovereign nation has chosen not to ratify. No Industrial court has that power in the world. A contrary interpretation will result in the absurd conclusion that the NIC has unfettered powers to apply conventions which have not been ratified and enacted into law or which are contrary to the interest of Nigeria. The interest of Nigeria can only be determined by the National Assembly during the processes of domestication. Another problem with the decision is that it has the effect of introducing uncertainty to the law. The court can choose any convention or international best practice which the parties did not avert their minds to at the time of entering into employment contract. Employers and employees must be able to predict the law governing their relationship. Indeed foreign investors may be scared away if they are unsure of what the court will do in the event of employment disputes. This is a serious issue in the administration of justice in cases of employment particularly in the light of the question whether or not the decision of the NIC (outside fundamental human rights and criminal cases) is subject to appeal. See the conflicting decisions of the Court of Appeal on the issue in the cases of SHERATON HOTELS AND TOWERS v HOTEL AND PERSONAL SERVICES SENIOR STAFF ASSOCIATION (2014) LPELR0-23340 (CA) and ZENITH BANK PLC. v DURUGBOR (2015) LPELR – 24898 (CA); LOCAL GOVERNMENT SERVICE COMMISSION & ANOR v BAMISAYE (2013) LPELR-20407(CA); LOCAL GOVERNMENT SERVICE COMMISSION, EKITI v OLAMIJU (2013) LPELR – 20409 (CA);; LOCAL GOVERNMENT SERVICE COMMISSION, EKITI v ASUBIOJO (2013) LPELR – 20403 (CA);; LOCAL GOVERNMENT SERVICE COMMISSION, EKITI v JEGEDE (2013) LPELR – 21131 (CA);; LOCAL GOVERNMENT SERVICE COMMISSION, EKITI v AJAYI (2013) LPELR – 21133 (CA); FEDERAL MINISTRY OF HEALTH v TRADE UNION MEMBERS OF THE JOINT HEALTH SECTORS UNION (JOHESU) & ORS (2014) LPELR – 23546 (CA). Now what is the international best practice and labour standards referred to by the court as the ‘global position on employment relationship now’? The Termination of Employment Convention, 1982 (No. 158) and the Recommendation No. 166 is a convention by the International Labour Organisation. As at 2013, it had been ratified by only 36 countries. Brazil has denounced it! How can this kind of convention form the basis of a conclusion by a court that termination without reason is contrary to International Best Practice and International Labour Standards? Interestingly, the Committee of Experts referred to by the court had explained that Article 4 of the convention excludes termination freely negotiated by the employer and employee in an agreement. The terms of employment between parties in the 21st Century normally have clear provisions on termination. The sweeping decision and over-generalisation of the court does grave violence to the sanctity of contract which is recognised by the convention. If anything, the International Best Practice in this regard would be the enforcement of agreements freely entered into by parties. For an International Best Practice or Labour Standards to be worthy of consideration under section 254 C (1), (apart from the fact that it must form the basis upon which the claim was made by the claimant and proved as mentioned above), it must be accepted internationally. The court did not refer to persuasive authorities or practices in respectable and comparable jurisdictions where the provisions of the Convention have been accepted to be the practice in the 21st
President, National Industrial Court, Justice Babatunde Adejumo
Century. The casual review of a convention culled from the internet and elevating it to the status of international norm betrays the forensic analysis required by a court in reaching a momentous decision such as this. In any event, there is no global consensus on the issue of termination of employment. Globally, the competition is between At-Will vs Job Security. These two philosophical divides explain the way labour laws have developed on termination of employment across the world. In At-will countries led by the United States, an employer may terminate an employment with or without reasons so long as the termination is not based on discrimination or retaliation on grounds protected by law. This position is substantially the same in Canada, India, Singapore, Nigeria etc. In 2008, an Accra Fast Track Court ruled that the 2003 Labour Act of Ghana does not compel employers to provide reasons for termination despite the fact that their Labour Act leans more towards the job security philosophy. On the other hand, in job security nations led by Europe, termination must be with reasons prescribed by law. There are however variants of the practice of this doctrine and many countries have reduced the restriction because of its effect as a disincentive to job creation. Under the Employment Rights Act, 1996 of the United Kingdom (UK) as amended, an employee is entitled to a written statement giving particulars of the reason for termination only if he makes request for one. In Germany under the Employment Protection Act, termination may be without reasons if the employer employs not more than 10 staff or if the employment has been for a period not more than six months. The flexibility adopted by these countries is captured in their enactments and not left to the whims and caprices of a court who has not considered the social, economic and financial considerations which may have informed it. Nigeria needs a law of unfair dismissal but it cannot be achieved through the backdoor on the premise of section 254C (1) (f) and (h). The issue must be dispassionately considered against social and economic factors and many questions must be raised and answered. For example, what will be the effect of restricting termination of employment in a country with a high rate of unemployment? Should the restriction be applicable to all employers? What is the role of employment contracts in termination? What are the circumstances that would constitute unfair dismissal? This is not what a court like the NIC can do. The NIC experience seems to have introduced more ambiguity to our labour law. There is need for a means of resolving disputes between employers and employees that is fairly quick and inexpensive and where there is no fair hearing, or the tribunal is hostage to a particular interest group or government, the appeal power has to be invoked to prevent injustice. Clarity and fairness of our law are the anchors for growth. Aloysius’s case and the conflicting decisions of the Court of Appeal on the right of appeal underscore the need for the National Assembly to urgently review and amend sections 243 (2) and (3) 254 C of the constitution on the right to appeal against the decisions of the NIC and its jurisdiction respectively. It is not in the interest of Nigeria to have a court with unquestionable and vague power to change the law without regards to the National Assembly. In the words of the Supreme Court in PETER OBI v INEC (2007) 11 NWLR (Pt. 1046) 560, 669, para. E: ”The jurisdiction of a court or a tribunal ought to be conferred in a very clear and unambiguous language which does not admit of any controversy. The jurisdiction of a court or tribunal is not something you employ a searchlight to discover. It ought to be plain for all to see” Mrs. Efe Etomi is a Partner, and Elvis Asia Senior Counsel at Chief Rotimi Williams’ Chambers in Lagos.
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BUILDING A STRONG FEDERAL - STATE RELATIONSHIP FOR SUSTAINABLE GROWTH IN THE MINING SECTOR
CONTINUED FROM PAGE 7
between the Federal and State Governments, covering terms such as the fiscal regime, revenue sharing, ownership of title and nature of interest affecting the partnership. The most effective requirement of the MOA would be its ability to survive different administrations in order to create continuity and offer comfort and security to potential investors. The partnership of this union between the State and Federal levels of government with potential local or foreign private sector investors for a catalyst period, after which period the Government would exit the partnership and divest its shares to the private sector partner. This would involve the creation of strategic mining titles in relevant geo-political zones for the exploration and exploitation of minerals available in commercial quantities including coal, bitumen, limestone, iron ore, barites, lead and gold HOW WILL THIS RECEIVED? The first objection to this collaborative approach will be why will this not reach me in another state? The thought that State / FG collaboration will be taken on a state by state basis is misplaced. To appreciate this concept we must revert to a clear understanding of Federalism. Briefly put ' an Arrangement whereby the powers of government within the country are shared between a national country wide government and a number of regionalised governments in such a way that each exist as a government separately and independently within its own territory with limits shared among the tiers of government'. Separate never means divided but shared powers, independence should not mean confrontation but cooperation. This is the ideal all we can aspire to right now is a workable arrangement. The proposed collaboration is a fiscal/ revenue arrangement between the states to make them stakeholders in the royalty proceeds of the sector. The Royalty proceeds of mineral exploitation belongs to The Federal Republic of Nigeria as a Federation distinct from the Federal Government. Therefore the Royalty proceeds in the collaborative proposal will be proceeds shared by ALL states irrespective of where the minerals are found on the one hand and the FGN on the other hand. This is the principle of 'equalisation' distinct from 'derivation' and we accept its fundamental inequalities in Nigeria's context but it seems the only way for the mining sector. If we recall that the collaboration will involve only royalty significant as this might be, and recall the FG will still take alone Export taxes, corporate taxes and other charges. How? This sort of measure can in practice be passed at the National Economic Council where the states and the Federal government are represented. NEC is established under S 153 of the Constitution NEC can adopt the MOA as a stop gap to legislative reform for the purposes described above. We are mindful of Section 163 of the constitution related to the payment of tax or duty under an Act of the National Assembly. In so far as the MOA would deal only with 'Royalty' it would not offend this provision. Why? • This will leave no one out of the mining business and reduce tension that derivation has caused. • It is no different from poor deal that Lagos State gets on the proceeds of VAT. The state accounts for approximately 60% of Nigeria's VAT and yet shares VAT proceeds with the entire Federation - despite the situation created by OGUN STATE v ABERUAGBA (1984) SC :(where does the VAT Act get its validity from since the Federal Government is only permitted to legislate on taxation of income, profits and capital gains?) • At the last count there is virtually no state of the Federation that does not have a mineral prospect that will in time get to be exploited Who? The Ministry of Solid Minerals will have to bell this cat it will ensure a measure such as this is in the road map; and get it passed as an executive measure for adoption by NEC. When? I must say that we have had more of the same for many years without progress. The time to reenergise the sector is now MINING Sector Catalysts As stated above we need to act now and stimulate the market with jolts. There are some catalytic measures we can take: State participating Joint Venture The Ministry for Solid Minerals Development (“the Ministry”) has an essential role to play in this effort. The Ministry could act as a catalyst for the short term. The incorporation of a company at the Corporate Affairs Commission (“New MineCo”) which would be wholly owned by the Ministry of Finance Incorporated and
Miners at work
which could hold a selected number, say six (6) strategic titles for each of the geo-political zones of the country would be the first step. The minerals could include coal, bitumen, limestone, iron ore, barites, lead and gold. The advantages of incorporating New MineCo rather than using the already established Nigerian Mining Corporation (“NMC”) are as follows: i. NMC is unsuitable for single purpose development in view of its status as a statutory corporation, for which reason the shares in NMC would not be easily divested to third parties; and ii. The legacy obligations and liabilities already faced by NMC would create a barrier to the effectiveness of the efforts. New MineCo would subsequently enter into partnerships with domestic or foreign private sector investors (“InvestCo”) to form joint venture vehicles (“JointCo”) for the exploration and exploitation of mineral resources of the country, for an initial “catalyst period” of perhaps five (5) years. The terms of these partnerships would be captured in Investment Agreements between the parties. Having a Federal Government and State governments joint venture partner in minority participating interest would significantly reassure the InvestCos on matters of political and legal risk. Finally, after the catalyst period, the shares of New MineCo in JointCo would be entirely divested to InvestCo, allowing the Government to exit the partnership with a right of first refusal offered to InvestCo. This intervention is naturally without prejudice to preparatory work of the Ministry in the sector, data gathering and indeed competitive bidding for other titles, but this serves to energise the sector and prove “mining in the economy” as a viable greenfield resource for Nigeria. The proposed project would first require the incorporation of a company wholly owned by the union of the state and federal governments (“NewMineCo”). NewMineCo may then enter into joint venture partnerships (“JointCo”) with private sector investors (“InvestCo”). After the catalyst period contemplated by the project, the shares of NewMineCo in JointCo can be entirely divested to InvestCo. The collaboration between the State and Federal Governments would be regulated by Memoranda of Agreement which would set out the parameters of their relationship including the description, purpose and goals of the collaboration, the respective rights and obligations of the parties, the fiscal regime and revenue sharing modalities, the policies to be implemented to achieve the purpose of the proposed project, ownership of title, shareholding structure in NewMineCo etc. The most effective requirement of the MOA would be their ability to survive different administrations in order to create continuity and offer comfort and security to potential investors. The private sector investors which would partner with NewMineCo can thereafter be identified through select invitation or open competitive bidding where the titles would be offered for sale to both local and foreign investors who have financial and technical capacity to fully realise the potential of their allocated titles. The process under the competitive bidding include advertisement, preferred investor selection, due diligence, and finally the offer of mineral titles to selected investors. A Joint Venture Agreement would set out terms such as the duration of the catalyst period, the purpose, structure, funding, corporate governance and dividend policy of the joint venture, right of first refusal for the private sector partner following divestment of shares by the Government etc.
I believe that the greatest strength of this proposed solution is the fact that having the Government as a joint venture partner would significantly reassure the potential on matters of political and legal risk, thus creating a stability which is much needed for the attraction of investors to the Nigerian mining sector. 'G2B' Government to Business catalyst Mineral assets should be identified on a need basis for 'government to business' development. That is selective-targeted titles approach giving project mandates to private sector on a need and capacity basis. This will leap frog portfolio companies, commission agents and speculators. For instance Government will negotiate directly - bitumen titles with major road construction business; coal to generating companies, limestone with cement business Barite titles with oil drilling business and so forth. 'G2G' Government to Government catalyst Without prejudice to private sector participation Federal government can give selected mineral titles to host states. These host States have a unique interest and will take positive steps to develop mining project. Where minerals stride more the territory of more than one state creating a unique interest in a combination of states these states can come together and collaborate in the private sector exploitation. Again this will cut out portfolio investors middlemen and speculators. Conclusions The journey to building a sustainable, globally competitive mining sector which will achieve the economic development and diversification objectives of the country’s administration is an imperative. The existing legal framework does not address all key investor risk considerations including rights to use land and legislative competence on land and matters affecting land - this could be addressed by bringing the Federal and State operators together to agree on fiscal benefits thereby self-limiting authority on agreed lines. Government involvement will foster investor confidence in the short term. In our constitutional arrangement Federal and State collaboration at NEC and on other levels- on physical, fiscal and institutional basis will be the foundation for a sustainable De- risking strategy. We caution that the sector is ready and able to receive credible investment we have only highlighted challenges that will mitigate risk that exists in any environment to do business. There is a need to combine mitigation with catalyst projects to immediately stimulate the market measures such as State JVs, G2B and G2G are strongly recommended. As we know the sector holds the potential for job creation, industrialisation and the general improvement of the quality of life of each Nigerian citizen. The Hon Minister Dr Kayode Fayemi and the Minister of State Hon Bawa Bwari are to be commended for their vision. By establishing the Road map committee the Ministry of Solid Minerals Development has shown its readiness to do what is necessary to de-risk the sector. Keynote address by Mr. Olasupo Shasore SAN at the National Consultation on the Validation of the Road Map for the Solid Minerals Sector delivered in Kaduna 26th May 2016
31.05.2016
THE LIGHTER SIDE/13
LEGAL HUMOUR
We Hold Your Brief JUDE IGBANOI jude.igbanoi@thisdaylive.com
Dear Counsel, My neighbor and his wife have constituted themselves into a total nuisance in our compound. They quarrel and shout at each other at the top of their voices and in the past few weeks it has actually degenerated into physical exchange of fists. In their last fight, the wife passed-out and had to be rushed to the hospital with so much bruises all over her. Although each time their families always come in to reconcile them, but we as neighbours are fed up with this continuous disturbances from this couple. The police had come in on one occasion and the husband later took it out on one of the neighbours, accusing him of bringing police into his private family affair. After reading an article in a magazine recently about a certain law against domestic violence, I decided to send you an email
on this for further clarification. B.A., Abuja, FCT Dear Mrs. B.A., I must confess that this is a very serious question you have raised and statistics show that it affects very many families in Nigeria. In the scenario you have painted in your mail, it is so pervasive that research findings from the police recently revealed that domestic violence is actually on the rise in Nigerian homes. However, on May 25, 2015, President Goodluck Jonathan signed into law the Violence Against Persons (Prohibition) Bill. The Act seeks to eliminate violence in all forms in public and private life.
The judge in a criminal case in Dublin was shocked when the accused pleaded guilty to the charge but was acquitted by the jury. "How did you arrive at that verdict?" the judge asked the foreman of the jury. "Well, your honour," said the foreman, "Everybody except you knows him to be the biggest liar in the land!" Section 2(1) of the law provides that any person who willfully inflicts physical injury on another by means of a weapon, substance or object is liable, on conviction to imprisonment of not less than 5 years or a fine not exceeding N100,000. One of you must draw the attention of your neighbor and his wife to this, so that when next they fight, the man or his wife as the case may be should know that they risk being charged for a serious criminal offence which could land one of them in jail. Also, the Lagos State Government has passed the law on domestic violence which is even more poignant and with more specific provisions than the federal law. One would therefore urge other states of the federation, including the FCT to emulate the Lagos State initiative on this. This is the only and surest way to curb the rising incidents of domestic violence across the country.
Lagos Court of Arbitration International Centre for Arbitration & ADR held its ADR Speaker Series with Mrs. Hairat Aderinsola Balogun OON. The theme of the presentation was ‘Arbitration An Everyday Tool for Problem and Solutions’ on Wednesday May 25th, 2016. Here are the personalities who graced the occasion.photos: Sunday Adigun
Guest Speaker, Mrs. Hairat Aderinsola Balogun and Mr. Olasupo Shasore SAN
Folake Abiodun (left) and Mrs. Doyin Rhodes-Vivour
Mr. Folabi Balogun ans Mrs. Vivian Edozie
Mr. Osahon Idemudia (left) and Mr. Segun Oladimeji
Megha Joshi
Mrs. Olusola Adegbonmire (left) and Mrs. Oluwakemi Eweje
Mr. Tolu Obamuroh and Mrs. Eti Awiiroren
Mr. Nurudeen Ogbara (left) and Mr. Olusegun Fabumi
Mrs. Nwanne Okafor
Mr. Olugbenga Olabenjo (left) and Mr. Ayo Ajayi
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31.05.2016
Aspects of Insurance in EPC Projects in Nigeria Lugard Tare≠ Otu
and deprivation (CEND); currency inconvertibility; forced divesture exchange transfer risk; forced abandonment contract frustration; arbitration award default, unfair calling of guarantee/ wrongful calling of guarantee, import/export license cancellation, embargo, war and political violence and terrorism and kidnapping. Political risk insurance would cover for loss caused by the above-described events. The cover may overlap partially with the commitments provided under a project contract. In the event that this occurs any government guarantees would stand in front of the insurance cover.
I
Introduction nfrastructural development in Nigeria has been on the rise for some time. The construction industry constitutes an integral part of the country’s economic development index. Despite oil prices going south, the Federal Government has earmarked billions of Naira for infrastructure projects and construction in the fiscal year 2016, in addition to whatever private sector contributions the industry will enjoy. Certainly, these will stimulate the dawdling economy, create jobs and earn income for the country. It is therefore pertinent to understand insurance in the construction industry, particularly, as it relates to insuring engineering, procurement and construction (EPC) projects in Nigeria. This article seeks to proffer advice on insurance policies that are applicable and should be undertaken under EPC projects, particularly by the EPC contractor. Brief Statement on Basic Principles of Insurance For ease of understanding, it would be in order to explain briefly what insurance connotes. The Concept of Insurance arose out of the mercantile adventure of transporting goods across the sea, the adventure being, in early times. The enormous fortune to be made if the project turned out to be successful, as contrasted with the disastrous loss, even ruin, which resulted if the project floundered amid the perils of seas. Not surprisingly therefore, the common law of insurance developed to cater for these fears – the fears of merchants – to essentially provide safeguard against risks. In Nigeria, the extant law with regard to insurance is the Insurance Act of 2003 (the Insurance Act) and the relevant regulatory authority is the National Insurance Commission (NAICOMM). The essential features of an insurance contract are that: the insured enters an agreement with the insurer; an element of which is the payment of premium by the former to the latter and consequently, a sum of money will be paid by the insurer to the insured on the happening of a specified event; there must be uncertainty as to the happening of the event, either as to whether it will happen or not or if it is bound to happen, like the death of a human being, as to the time at which it will happen: DEPARTMENT OF TRADE & INDUSTRY v ST. CHRISTOPHER MOTORISTS ASSOCIATION LTD (1974) 1 All ER. Insurance & Premium Payment By the Insurance Act, for there to be a valid contract of insurance, the insured must show that he has fully paid his premium. A commendable innovation under the Insurance Act is the fact that the liability of the insurance company attaches immediately a premium which is paid whether or not an insurance policy is issued or delivered to the insured. There is also the requirement under the Insurance Act that an advance unstamped copy of the policy must be delivered to the insured within thirty days of the payment of the first premium. A stamped copy of the policy must be delivered within ninety days after the payment of the first premium. Overview of the Role of EPC Contractors in Project Insurance Typically, whilst there may be a number of parties in an EPC arrangement, the contractor usually performs most, if not all the insurance requirements of the EPC contract. The contractor not being a party to the finance/loan agreement between the owner/employer and the lender/financier, is not in a position to influence the terms of the financing agreement. Its main goal, however, is to protect itself from any risks which will interfere with completing the project on time and according to specifications without cost overruns. A contractor will normally carefully examine the insurance contracts provided by the owner/employer and then make its own decisions as to whether it wants to obtain difference-in-conditions (DIC) cover or absorb the risk internally. Certainly, there are no hard and fast rules as to the specific insurance policies that should be undertaken in an EPC contract. However, there are best global practices in the insurance industry with regard to construction and infrastructure projects. Below is an expose on the most fundamental and boilerplate policies that must be taken out. Main Risks coverable by insurance during the construction phase of the EPC Project
The construction phase of a project marks the beginning of on-site preparations and the mobilisation of the contractors, engineers, workmen, machinery and equipment, etcetera, to the project site and/or prefabrication yards and manufacturers’ workshops. This process involves careful planning as there must be co-ordination between all parties in order to maintain the agreed work schedule. Therefore, during construction; funds are drawn down from the financiers based on a predetermined budget/schedule for spending with any major variations, depending on the finance structure. At this point the project is vulnerable to a whole range of risks such as completion and development risks, project planning and preparation risks, off-take or purchase agreement risks, technology risks, political risks etcetera. Construction All Risks (CAR)/Erection All Risks (EAR) Construction All Risks (CAR), also known as Erection All Risks (EAR) cover is for ‘all-risks’ of physical loss or damage to material, supplies, equipment, fixtures and temporary structures that are used in construction, fabrication, installation, erection or completion of the project. EAR is specifically used in conjunction with engineering risks whilst CAR refers to general building risks and these risks should be insured against in every EPC project. This insurance will normally be undertaken in the joint names of the employer and the contractor. Although the term ‘all-risks’ is used, the cover is restricted to accidental physical damage at the project site, which is caused by an insured peril. In addition, the insurance policy does not reflect the scope of the EPC contract and will therefore not cover all the risks assumed by the EPC contract parties. Since the risk exposure varies depending on on-site activities, the EAR insurance period is divided into 3 phases for underwriting purposes, to wit, (a) Construction/erection; (b) Testing/commissioning phase; (c) Manufacturer’s risk within the CAR/EAR cover (defects liability/ maintenance). The significance of this difference to the project and to the parties is that each phase carries different premium rates and deductibles thereby influencing not just the cost of the insurance but the claim settlement amount. The CAR/EAR policy forms the basis for the Delay-in-Start up cover, so it is very important that the parties have full knowledge of the perils covered and the applicable exclusions as this will influence whether a claim for loss of revenue will be paid or not. Another point to note is that the CAR/EAR policy will only provide all risks cover for onsite activities and excludes off-site work i.e. at manufacturer’s site. It is therefore important from a project-financing standpoint, to ensure that the necessary insurance or contractual guarantees from suppliers/manufacturers are in place to make sure that there is financial compensation in the event that major items of equipment/material are not delivered. Delay-in-Start up (DSU)/Advanced Loss of Profit (ALOP) One of the main features of project financing and implementation is the collateralisation of loans with project assets and their repayment purely on the basis of project earnings. The revenue generating capability of a project is thus a critical financing factor and stringent conditions regarding delays in scheduled project completion, have been added to contracts between financiers and owners/employers, and particularly to those between owners/employers and contractors. The works contract between the owner and the EPC contractor stipulates that as a rule, the contractor is accountable vis-à-vis the owner for any project start-up delay arising through any fault on the
part of itself. This obligation is however relieved where certain risks are expressly undertaken by the employer i.e. force majeure events. DSU cover is designed to secure the portion of revenue, which the principal requires to service debt and realise anticipated profit. It may also cover loss, which arises from any delay caused by the acts or inactions of the employer. It provides fairly broad protection against delays arising from physical damage caused by any type of peril included in the relevant material damage cover. However, it does not cover delays caused by other events which are cited in an exclusion and consequently do not qualify as accidental physical damage. For example, terrorism cover is usually expressly excluded from the EAR cover (as this has to be purchased separately), therefore if damage to property arises out of an event that is deemed to be terrorism, any delay in the project and resultant loss of revenue will not be covered. In addition, if the physical loss, even if caused by an insured peril, is not critical, DSU cover will not be triggered, as it does not result in a ‘project delay’. Force Majeure Project financed transactions are distinguishable from corporate finance or structured finance assets because of their potential vulnerability to force majeure risks. This vulnerability arises out of the dependence on the project as a single source of income and not having the comfort of a diversified asset portfolio to cushion the effects of a loss. Accordingly, it is the wise practice to require that insurance be taken out to protect against certain risks of force majeure, i.e. acts of nature – hurricanes, earthquakes, and floods etcetera. Failure to insure against these risks of force majeure events has the dangerous potential of undermining and totally derailing the project in the event of the occurrence of the peril. Performance Failure/Design Risk It is critical that when purchasing design coverage that the parties are aware that various wordings exist within the industry and that each carries a different set of consequences that impact on what is actually paid when a claim is made. When a loss event arises from defective design, materials, or workmanship, the design clause usually determines what is covered and what is not. There are two main standard industry wordings that are currently being used – the London Market Defect Exclusion (DE) and Munich Re (LEG) wordings. These standard wordings tend to be confusing and misleading as they come in various forms and their differences are subtle but important. For example, if a faulty part causes damage to a vehicle engine and the entire engine has to be replaced DE coverage would not pay for replacement of the engine but will pay for any resultant damage to any other property which is not part of the defective engine (i.e. damage to surrounding property), whereas another DE coverage would pay for everything except the faulty part. The trick is in identifying what is the faulty part (which is sometimes almost impossible) and what is deemed to be other property distinct and separate from the defective part. In any event, whether it is described by the parties’ contract or not, the contractor should as a matter of necessity carry out insurance against any form of loss caused by performance and/or design failures, and undertake the said insurance under concrete advisement and confirmation from the insurance company on what exactly the policy covers. Political Risks Some of the risks covered by political risk insurance are confiscation, expropriation, nationalisation
Main Risks Covered By Insurance during the Operational Phase of the Project At this stage of the project, construction has been completed, the contractors have been demobilised and the operators have been left to take over the running of the infrastructure. All design and performance specifications have been met (completion test passed), the ownership of the facility is handed over to the project owner/ employer (from EPC contractor) and the project is now in a position to earn revenue. It is important to note that having passed the completion test two things happen that affect the structure of the insurance program: (a) The employer’s completion guarantee falls away leaving the lender/financier to absorb all or part of the project risks and the project commences its limited recourse or non-recourse status; (b) The construction insurances (which were on the contractor) terminate and operational insurances commence (to be performed by the employer). At this point, since the Taking-over Certificate has been issued to the contractor by the employer and possession, control and management of the facility has been transferred to the latter, all corresponding risks and responsibilities will automatically pass to the employer who shall be responsible thenceforth for maintaining the relevant insurance. Appropriate Insurance Forum - Cross Border & Local Insurance There is also the issue of the appropriate forum (venue) to undertake the insurance policies. Whilst it is trite that an insurance contract can exist between parties irrespective of the location of the parties, certain limitations and/or qualifications exist. Section 72 of the Insurance Act provides that “No person shall transact an insurance or reinsurance business with a foreign insurer or reinsurer in respect of any life, asset, interest or other properties in Nigeria businesses classified as domestic insurance unless with a company registered under this Act”. In subsection (1) of this section, "domestic insurance or reinsurance" business includes fire insurance and reinsurance business; motor insurance and reinsurance business; liability insurance and reinsurance; life insurance and reinsurance business; accident insurance and reinsurance business; and contract with foreign insurance and reinsurance; and such other insurance and reinsurance business as NAICOMM may from time to time prescribe. Furthermore, the provision states that “Notwithstanding subsection (1) of this section, where in any particular circumstances a person satisfies the Commission that by reason of exceptional nature of the risk in or emanating from Nigeria or exceptional circumstances, such risk cannot be placed with an insurer or reinsurer registered under this Act, the Commission may in writing permit such person to effect such insurance or reinsurance with an insurer or reinsurers registered, outside Nigeria”. It follows therefore from the above that whilst the contractor may elect to obtain insurance from a local insurance company, it may also do same from an international insurance company with the permission of NAICOMM as described above. Conclusion Whilst the foregoing represent the core insurance policies to be undertaken in EPC projects, they are however not exhaustive as there are other insurance policies also deemed by the extant laws in Nigeria to be compulsory. The role of insurance in EPC projects is not as straightforward as one might think. Project risks are dynamic and there are no hard and fast rules. However, for a successful implementation of the Project, the contractor should put in place a watertight and sound risk management program, as this would eliminate the possible perilous exposures that may bedevil the contractor. Mr. Tare-Otu II is a Senior Associate with Solola & Akpana working out of the Firm’s Port Harcourt office.
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THE WHITE COLLAR IDOWU OLOFINMOYIN
idowu.olofinmoyin@norfolk-partners.com
“You Have a Right to be… Forgotten?”
A
s a young child, Kunle now married with children of his own, was sexually abused. The scandal of his abuse was exacerbated because it captured the hearts of Nigerians when it was first reported as the “Zobo-Baby Case” in the early 80s broadcast on NTA news. Almost two decades later, while at the Eko University and as part of a Psychotherapy experiment an audio recording of his private discussions about the ‘Zobo-Baby Case’ with his supervisor a licensed clinical Psychologist was stolen and put online in a rogue university blog- Eko’s Finest Gist. Kunle left the country and started a new life for himself in Canada where he changed his name so that he would not be linked with the Eko’s Finest Gist blog. He married, had children and got a job. He never discussed the Zobo-Baby Case with his wife or anyone ever again, until his employer, while researching Kunle’s University qualifications from Eko University discovered a link on Facebook naming Kunle as the Zobo-Baby. Now here is the question that follows this emotive and provocative issue- Does Kunle have the right to compel independent third party websites like Facebook, simply reporting true and factual occurrences, to take down the information about his connection to the Zobo-Baby Case? In short does he have the right to be forgotten? We do not have a problem with forgetting in Nigeria. As any skilled public figure knows, any scandal in Nigeria can be short-lived, all you have to do is survive the initial uproar of its revelation and make it to 90 days out of prison from the date of the scandal and your chances of escaping it keep increasing exponentially the farther in time you get. And yet, as fascinating as the “90 day-Rule” in Nigeria is, that is not the topic of our discourse today, although it does form the basis of another fascinating idea. The World Wide Web of Information Our Constitution holds sacred certain inalienable rights for every Nigerian- rich, poor, obscure, influential we all have certain rights that are protected by the Constitution. The question of enforcement however is another matter, but nonetheless, these rights exist. The internet is perhaps the greatest repository of knowledge and information ever created by mankind. Put in perspective the great library of Alexandria- a grand library of the ancient world, containing between 400, 000 to 700, 000 scrolls of papyrus recording the genius of the greatest thinkers and philosophers of that time, and the irretrievable loss it has come to represent being razed eventually by fires that destroyed it, is only a fraction of the repository that the internet represents. While the great library of Alexandria may have attempted to collect a copy of every book ever written, the Internet can be likened to every copy of every book on every person in the world because it represents immediate worldwide access to information held by any system or person. If there is a chance that someone has thought of the information, recorded it or is willing to share it, the internet possibly has it. The idea is astounding. There is so much information available to users that it beggars belief, but it also begs an interesting question- “How do you take something out of the internet?” The Right to be Forgotten This is not simply a question of “taking something down” from Facebook or “deleting posts online”, I mean how does anyone remove
any personal information from the internet entirely so that no record of it exists? Is that even possible? Traditionally the question of whether it is possible or not was never reached because it would be preceded by whether the relevant information is true or not and a defence of justification- i.e. the information is true and therefore publishable, especially where the duty of the Press and freedom to report on matters within the public domain are concerned. That was until the European Court of Justice (ECJ), the court of final recourse for matters that have reached the apex courts in European Union member states, declared that as far as it is possible- a person has the right to be forgotten by requiring internet search engines- the worldwide conglomerate companies that have revolutionised the storage and access of vast amounts of data that is the internet- like Google, to remove information about a person that is inadequate, irrelevant or no longer relevant in relation to its purpose, when the person to which such information refers to requests that the information be removed from the internet. The Costeja Case In March 2010 Costeja Gonzales a Spanish national brought a complaint against Spanish Newspaper La Vanguardia, Google Spain and Google Inc. at the Spanish Data Protection Agency- Agencia Espanola de Proteccion de Datos (SDPA). Gonzales wanted to compel La Vanguardia to remove or change the record of garnishment proceedings he was involved with in 1998 so that it no longer came up when searching the internet search engine Google. He wanted Google Inc. or its Spanish subsidiary Google Spain to delete or conceal the information. The basis for Gonzales’ demand was that the proceedings had been settled for some years and its report online was therefore no longer relevant and ought to be removed. The SDPA dismissed the complaint against La Vanguardia protecting its status as a newspaper in the publication of a justified matter in accordance with a directive of the
Government. However it upheld the complaint against Google, finding that the company is subject to data protection laws and was obliged to take steps to protect personal data that may include removing such records of a matter from its search engine. Google appealed to the nation’s High Court which referred the question- on the basis that it affected EU Directive on the Protection of Personal Data- to the European Court of Justice of the EU. The European Court of Justice found that Google is a “controller” of information by virtue of its operation as content provider of content included on the internet by third parties, and therefore subject to EU Directives on the protection of personal data and may at times be obligated to remove personal data published on third party websites. However the right of a data subject to require a controller such as Google to remove their data is to be balanced against the public’s right to have access to that data. A Nigerian Perspective The Right to be forgotten is therefore clearly protected under European jurisprudence, and Kunle our poor protagonist would be secure in that realisation. However that position as attractive as it is, is not tested in our jurisdiction. It also brings us to the classic jurisprudential contention between the Right to Privacy and the Freedom of the Press. The Constitution of the Federal Republic of Nigeria 1999 in section 37 guarantees the Right to Private and Family Life when it says: “The privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications is hereby guaranteed and protected” In similar manner section 39 subsumes the Right to Freedom of Expression and the Press stipulating in subsection (2) specifically that: “Without prejudice to the generality of subsection (1) of this section, every person shall be entitled to own, establish and operate any medium for the dissemination of information, ideas and opinions…” after which it goes on to stipulate legitimate conditions upon which this right may be
restricted or limited within the context of our democratic Presidential system of government. A Man’s Home his Castle v. The Liberty of the Press Historically these two separate but indispensable rights form part of the essential tenets of the protection and checks of a democratic system of government. Neither is an absolute right to be enjoyed at the expense of all others and in fact except for the inviolate right to call on God in times of disaster, we Nigerians have very few rights that are absolute. The question of balancing the subtle and vital interests of the privacy of a person and the freedom of the press has been the subject of great oratory like Mr. John Milton’s oratory to Parliament –Areopagitica- ‘For the Liberty of Unlicenc’d Printing’ in England or Cicero’s ancient question “quid enim sanctius, quid omni religione munitius, quam domus unusquisque civium?” –What more sacred, what more strongly guarded by every holy feeling, than a man’s own home? – and ultimately that balance goes on in perpetuity for the benefit of society and not in spite of it. In a Land Where no Right is Absolute the Beggar is King As a nation the rights to the sanctity of the home, the rights to dignity and protection against inhumane treatment, the right of free thought and conscience and others- are all provided for amply in our Constitution, however few have the ability to enforce them and even fewer have the forbearance to do so without payback and reprisal that makes a situation worse than simply being wronged and moving on. It therefore makes most of us beggars for the protections that we are entitled to. Still, those who can, have recourse to the Courts who are the arbiters and referees for the competing interests between the Right of Privacy and the Freedom of the Press. The rest of us will have to content ourselves with believing that we have a Right to forget everything else that happens to us.
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The Federal Ministry of Solid Minerals Development from 26 -27th May 2016 held a National Consultative Meeting on the Validation of the Roadmap for Solid Minerals in Kaduna. Here are some of the personalities who participated in the meeting. Minister of Solid Minerals Development, Dr. Kayode Fayemi (left) and Kaduna State Deputy Governor, Barnabas Bala Bantex
photos: Idris Egaji
Former Attorney General of Lagos State, Mr. Olasupo Shasore SAN
Kaduna State Governor, Mallam Nasir el-Rufai
Minister of State for Solid Minerals Development, Abubakar Bawa Bwari (left) and Kaduna State Commissioner for Environment and Natural Resources, Balarabe Shehu
Executive Secretary Kaduna Investment Promotion Agency (KADIPA), Alhaji Gambo H.Garba
Member Committee on the Development of the Roadmap, Mrs. May Agbamuche-Mbu and former Attorney General of Ekiti State, Mr. Olawale Fapohunda
Director/Legal Services FMSMD, Mr. Ibrahim Haske Dikko (left) and Special Adviser to the Governor of Oyo State on Solid Minerals, Hon. Matthew Oyedokun
Commissioner for Commerce and Industry Zamfara State, Mrs. Fatima Umaru Shinkafi
Director VBKom South Africa, Mr. George Oliver
Ag,Director General/Chief Executive National Steel Raw Materials Exploration Agency, Mrs. Rabi Umar Sodangi
L-R: Member Committee on the Development of the Roadmap, Mrs. May Agbamuche-Mbu, DirectorGeneral/CEO Nigeria Mining Cadastral Office, Alhaji Mohammed K. Amate, Vice Chancellor ABU Zaria/ Co-Chair Committee on the Development of the Roadmap, Professor Ibrahim Garba and Director Mines Inspectorate Department FMSMD, Engr Dauda A. Awojobi
L-R: Special Adviser Policy and Strategy FMSMD, Professor Okey Onyejekwe, Technical Adviser/Chief of Staff to the Minister of Solid Minerals Development, Mr. O’Seun Odewale and Mineral Sector Governance Advisor, African Minerals Dev Centre,United Nations Economic Commission for Africa, Addis Abba, Ethiopia, Mr. Mayer K Ngomesia
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An Action Instituted in the Name of a Dead Person is Void Ab Initio PAGE 4
UNSBA Holds Legal Employability Summit PAGE 5
‘One-term for Political Office holders will Guarantee Infrastructure, Save Cost’ PAGE 5
Capital Market Solicitors Association to Train Members on Anti-Money Laundering PAGE 6
QUOTABLES
'In the past one year, the Economic and Financial Crimes Commission has secured over 160 convictions in respect of cyber crimes, obtaining by false pretext or “419”, fraud, stealing and other cases. By the standard of any legal system that is record achievement. But the perception out there is that the anti graft agencies are not succeeding because the fat cats have remained largely untouchable. This picture has begun to change. Just recently, a former commissioner in Adamawa state, local government officials in Kogi state and a former DG of NIMASA were convicted and jailed.' – Femi Falana SAN
COLUMNISTS IDOWU OLOFINMOYIN The ‘White wing-tipped Collar’ is synonymous with the Advocate and the Advocate with oratory on what is pertinent, significant and what is poignant to contemporary life. And that is what The WhiteCollar column is, a variety column that discusses, by various written mediums, the legal issues that affect contemporary Nigeria, and hopes to inform meaningful discourse toward the ideal of our national community. Idowu is Counsel with Norfolk Partners, and as well as expertise in Law and Litigation, he has interests in Culture, Sports and Entertainment. He obtained a B.A. in Business Law and Marketing (Joint Hons.) from London Metropolitan University before his Post-Graduate Diploma in Law, Professional Training for the Bar and qualifying as a Barrister in England and Wales. He has an L.L.M from BPP University London.
‘The Legal Profession Does not Compromise it only Rewards You when You have Given Your Best’ PAGE 6
Building a Strong Federal - State Relationship for Sustainable Growth in the Mining Sector PAGE 7
The Death Penalty is not the Solution to Kidnapping in Nigeria PAGE 10
The Power of the National Industrial Court - A Review of ALOYSIUS v DIAMOND BANK PAGE 11
MAY AGBAMUCHE-MBU EDITOR JUDE IGBANOI DEPUTY EDITOR TOBI SONIYI ASSISTANT EDITOR AKINWALE AKINTUDE REPORTER TUNDE BUSARI GROUP HEAD OCHI OGBUAKU II ART DIRECTOR
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Solid Minerals Roadmap Revisited
T
he Federal Ministry of Solid Minerals in its drive to reposition the mining sector took yet another leap of faith with the setting up of a National Consultative meeting on the Validation of the Roadmap for the Solid Minerals sector which was hosted by the Kaduna State government. I was not surprised that the meeting was held in Kaduna as the State government has indeed been making concerted efforts to boost mining in the state and left no one in doubt as to their determination by the way and manner in which the two day meeting was organised. The Consultative meeting boasted an impressive turnout with Dr. Kayode Fayemi, the Minister of Solid Minerals, the Minister of State Hon. Abubakar Bawa Bwari, Governor of Kaduna State Nasir el Rufai, his deputy Arc. Barnabas Bala Bantex and fully 27 states, represented through their Attorneys General and or Commissioners and Special Advisers on Solid Minerals. In welcoming the participants and appreciating the opportunity to host the meeting Deputy Governor Bantex noted that the event came at the right time when the State was in the process of reinventing its economy through the diversification of its sources of revenue, giving priority to the solid minerals sector. He further noted that investments in the solid mineral sector would improve internally generated revenue (IGR) for the State, create jobs, and improve the quality of life of the people of the State. He believed the forum would have outcomes that could help boost Kaduna’s economic productivity. Dr. Kayode Fayemi on his part in his opening remarks thanked Kaduna State for holding up to the responsibility of hosting the event. Some other major issues the minister highlighted included the ease of issuance of licences to potential investors, all in aid of encouraging investments, juxtaposed with agitation between States and the Federal Government (FG) on this self same matter of license issuance. He added that the Mining Cadastre office was positioning itself to open zonal offices to create the necessary bridge here between State and Federal Governments. The Minister stated that the forum would ensure that the sector regained its relevance in terms of IGR and job creation but he also declared that no mines would be allowed 50 metres of any built up area. He encouraged States to set up mining equipment leasing companies and strongly canvased for cooperation between the States and the FG. Dr. Fayemi was quite rightly, impressed by the high level of attendance by the States. The keynote presentation, brilliantly delivered by Mr. Olasupo Shasore SAN, former Attorney - General of Lagos State was titled ‘Building a Strong Federal- State Relationship for Sustainable Growth in the Mining Sector’. He set the tone of his presentation by his opening statement wherein he opined ‘ in order to address the sector and move Nigeria from being a mineral country to being a mining country we must bear the above philosophy to heart - we need to be radical in thinking and attitude towards the challenges’. The foremost of these issues he said were the risks presented by the sector’s legal and regulatory framework. This framework is the foundation upon which a sustainable, attractive and globally competitive private sector-led industry must be based and it must therefore be solidly and soundly said to give the mining sector its best chance. He gave examples of a few challenges of note, namely: i) Low
domestic and foreign investment appetite leading to minimal project funding; ii) Gap in sector infrastructure support: access roads, rail from site to use and or export iii) legal risk uncertainty; iv) Illegal mining and community action. He further explained that political risks faced by the sector included slow reform implementation, policy failures and policy U-turns, which are sometimes a feature of political turnover. Others stem from the overlapping jurisdictions of the several authorities involved at various levels of government in the licensing process for mining in Nigeria. The key risks he emphasised arose from uncertainty of legal ownership of mining rights between the Federal and State Governments. This uncertainty is created by apparent conflicts between the Constitution and the Land Use Act which are affecting the activities of the sector. We all know that the Land Use Act vests all land within a State in the Governor of that State who is further vested with the power to regulate matters relating to land in his state e.g the right to grant and revoke rights of occupancy. Unsurprisingly the states are agitating for control of the minerals within their domain and the session on the state perspective of the Roadmap highlighting areas of interest and concerns to them was a defining moment as the majority of the attendees, without batting an eyelid, just wanted control of their States mineral resources. Some held strong views that solid mineral resources in every state should be owned and managed by the state, only paying royalties to the Federal Government. I do agree that there is a dire need to amend the legislative framework of the mining sector in order to successfully attract the much desired investment. In all honesty the process will be tedious, long drawn out and would require sustained will power from those in the legislative houses to pull it off. Mr. Shasore’s recommendation of a Memorandum of Agreement (MOA) between the States and the Federal Government I believe is indeed a suggestion which must be seriously considered by the Federal government and the States and without further ado if we are to reach our potential in the mining sector as time is of the essence here. This he said will give fiscal platitude and the successful establishment of greater legal certainty for private sector investors with respect to the ownership of mining rights in Nigeria. The MOA with the right political will could and should be set in motion as soon as possible as the more contentious areas such as revenue sharing and ownership of title, can surely be successfully negotiated and agreed upon. There has been a genuine fear that giving power to the states to control their mineral resources will also affect the oil producing states who will in turn want control of their oil wealth. Mr. Shasore rightly clarified this point by saying that the principle he is canvassing for is of 'equalisation' which is distinct from 'derivation' as the only way for the mining sector. Federal Government he noted is far away from the people. He further added that this sort of measure can in practice be passed at the National Economic Council where the states and the Federal government are represented. The NEC is established under S 153 of the Constitution and the NEC can adopt the MOA as a stopgap to legislative reform. The most effective requirement of the MOA he added would be their ability to survive different administrations in order to
create continuity and offer comfort and security to potential investors. Finally, he concluded by saying that ‘the greatest strength of this proposed solution is the fact that having the Government as a joint venture partner would significantly reassure the potential investor on matters of political and legal risk, thus creating a stability which is much needed for the attraction of investors to the Nigerian mining sector’. The Co-Chair of the Committee on the Development of the Roadmap and Vice Chancellor, Ahmadu Bello University, Zaria Professor Ibrahim Garba gave an overview of the Roadmap for the Solid Minerals sector. He noted that ‘the mining industry in Nigeria today contributes almost nothing to Gross Domestic Products (GDP), employment and other economic indicators, unlike other African countries that are enjoying revenue from mining in millions of dollars. Therefore, to bridge the gap between Nigeria and other African countries drastic actions must be taken and we must seem to be committed to mining’. He said that from 2007 to date, the Federal Government had tried to bring mining back to life and give it a prestigious place in the economy and that the Roadmap if followed properly would likely lead to success in the mining industry. Collaboration among states and also with the Federal Government was also essential for the success of mining in Nigeria. He also noted that the institutional framework of mining needed to be strengthened. It was though a little disconcerting to note, especially considering the impressively high level of attendance and attendees, how so few state representatives had previously read the Roadmap. Though the Roadmap was sent to the governors of all the 36 states and the states were given ample time to review it, for whatever reason it did not appear to have been widely and appropriately distributed as a good number of government participants clearly had not seen it. This was evident from some of their suggestions and comments as the Roadmap is indeed already a robust and all encompassing document, in my admittedly biased opinion! Participants from the states were actively encouraged to make comments and suggestions and one, that the Federal and State Governments should engage youths in mining activities was significant. In a country where we do not have statistics on employment this is an area to be tapped. 34 Nigerian universities are graduating geoscientists yearly with only a tiny percentage finding work. The employment of graduate scientists and engineers to train artisanal miners would be a welcome development as creating employment is key and one of the sustainable development goals. Some lamented the issuance of mining licenses to investors without the knowledge of the state government. Whilst others regretted that community development agreements often went unfulfilled. Another pertinent recommendation was for the setting up of mineral buying centres to encourage the fairly priced and profitable selling of solid mineral resources, as was that for government to create mineral equipment leasing companies and to enable the tracking of revenues from mineral resources. Finally came the recommendation that the forum be convened around the different states. It was interesting to note that Niger state has set up its own company es-
MAY AGBAMUCHE-MBU
LEGAL EAGLE may.mbu@thisdaylive.com sentially to create a database on the volume, quality and types of mineral resources found in the state and that Kaduna state has over 300 mineral titles, has conducted a comprehensive geological survey and has adequate data on its mineral deposits. As such other states were urged to imbibe the same culture of information gathering. Mr. Gabe Igboko Abia State Commissioner for Environment and Solid Minerals Development, commended the idea of the Roadmap to improve productivity in the solid mineral sector and felt that implementing just 50% of the policies would go a long way to improving said productivity. He further added that his state only received N3.3 million in 2015 from mining, but with the fine tuning of the policies in the state investors with huge capital have now expressed interest in the sector. Adamawa State Commissioner of Solid Mineral Resources Mrs. Shanti Sashi in commending the idea of the Roadmap noted that her state was able to identify at least one type of solid mineral in each local government of the State. She advocated for the federal government to partner with the states on surveys and inventory documentation of solid minerals around the states. She informed the gathering that four investors have expressed interest in establishing cement factories as most of the southern part of the state is sited on limestone. Mrs. Fatima Umar-Shinkafi, Commissioner for Commerce and Industry in Zamfara State stated that Zamfara had a large iron ore deposit but that we needed to link infrastructure with solid mineral development for the sector to take off. She further added that we should stop looking for foreign investors but source locally for investors and that exports will come naturally when we start providing the required quality and quantity of these raw materials in Nigeria. The political will to drive the mining sector has indeed been established but it has to be sustained. Implementation was considered as key as it has not been one of our strengths but thankfully it has been provided for within the framework of the Roadmap by the creation of the Mining Implementation Strategy Team (MIST). The Mining institutions need to be strengthened and given wholehearted support to create an enabling environment for investment and funding. An observation by a good number of participants was that some of those agitating for control have neither read the Mining Act 2007 or any of the governing laws. All in all I believe that in the one year of President Muhammadu Buhari’s administration the mining sector has indeed been reenergised and is on the right track to succeeding.
4/LAW REPORT
31.05.2016
An Action Instituted in the Name of a Dead Person is Void Ab Initio
I
t is settled under our laws that a dead person ceases to be a legal person or to have legal personality and as such cannot sue or be sued personally or in a representative capacity. Therefore, a writ taken out in the name of a deceased person is out-rightly incompetent, incurably defective and is unsusceptible to any form of amendment. In the instant appeal, the Court of Appeal applied this principle of law and held that the action filed by the Respondents was void ab initio and could not be remedied.
Facts Following a fire incident which was occasioned by the Appellant, a writ of summons was taken out in the name of the Respondents, who were the deceased victims of the fire incident, at the Federal High Court, Lagos (the “trial court”). Subsequently, the Respondents filed an application, seeking the leave of the trial court to amend their writ of summons by substituting the 1st to 12th Respondents with their personal representatives and guardians. The Appellant, via a notice of preliminary objection, challenged the jurisdiction of the court to hear the Respondents’ application having been brought by deceased persons. The application for amendment and the preliminary objection were taken together and the trial court granted the Respondents’ application for amendment, but in the ruling, made no mention of the Appellant’s preliminary objection, although it indicated that the Appellant filed a counter affidavit though none was filed. The Appellant, being dissatisfied with the trial court’s decision, appealed to the Court of Appeal, Lagos (the “Court”) vide a Notice of Appeal (NOA) dated 19th March 2013 containing three grounds from which the following issues for determination were raised; a. Whether the failure of the trial court to consider or pronounce on the Appellant’s preliminary objection dated 11th day of November 2013 in its ruling of the 10th March 2014 constitutes a denial of the Appellant’s right to fair hearing. b. Whether the learned trial judge was right when he entertained and granted the 1st to 12th Respondents’ application for leave to amend the writ of summons and statement of claim. The 1st to 12th Respondents on their part, filed a Respondents’ Brief dated 18th May, 2014 but deemed filed on the 25th June 2014 and formulated 2 issues for determination thus; a. Did the Court below consider the substance of the Appellant’s Preliminary Objection (dated 11th November, 2013) in the Ruling dated 10th March, 2014 before leave was granted to the 1st to 12th Respondents to amend their writ of summons and statement of claim? b. Whether the Court below exercised its discretion judicially and judiciously in granting the 1st to 12th Respondents’ motion dated 30th October 2013 for amendment of the writ of summons and statement of claim? The 13th and 14th Respondents did not file any brief of argument. The Court adopted the issues formulated by the Appellant for the determination of this appeal. On issue number one, the Appellant, while relying on the case of ONYEKWULUJE v ANIMASHAUN (1996) 3 NWLR (Pt. 439) Pg. 637 and other cases, submitted that although it was clear from the Court’s record that the Appellant moved his preliminary objection dated 11th November 2013, no reference was made to it in the trial court’s ruling and that amounted to a breach of the Appellant’s right to fair hearing. The Appellant further submitted that from the ruling of the trial court, it is evident that it did not peruse any of the processes filed by the Appellant and that in situations, such as the instant, where the right to fair hearing has been crushed, the proceedings cannot be salvaged. They relied on the case of UZUDA v EBIGAH (2009) 15 NWLR (Pt. 1163) Pg. 1, amongst other cases, and urged the Court to determine the Appellant’s preliminary objection in view of the powers given to it under Section 15 of the Court of Appeal Act. On issue number 2, the Appellant submitted that the application dated 30th October, 2013 in the name of the 12 deceased persons was void ab initio and incurably defective. The Appellant also submitted that the defect robbed the trial court of the jurisdiction to entertain the application to amend the writ of summons and the trial court ought to have struck out the application and declined jurisdiction to entertain same. The Appellant further submitted that a party may amend his pleadings only in respect of an action instituted by juristic persons as it is not permissible in law to substitute non-juristic persons with juristic persons. The Appellant relied on the following cases ODU’A INVESTMENT CO LTD v TALABI (1997) 10 NWLR (Pt. 523) 1, ADEMULOKE v PRESIDENT, IBADAN S/E C.C (2006) 6 NWLR (Pt. 977) 612, OBIKE INT’L LTD v AYI TELETRONICS LTD (2005) 15 NWLR (Pt. 948) 362, IDANRE LOCAL GOVT v GOV. ONDO STATE (2010) 14 NWLR (Pt. 1214) 509 amongst other cases, in support of the above submissions. In response to the submissions of the Appellant on issue number one, the 1st to 12th Respondents submitted that from the ruling, the trial court considered the Appellant’s preliminary objection and that the trial court inadvertently referred to the Appellant’s preliminary objection as a “counter-affidavit” and “opposition” which becomes more apparent in the view of
Y.B Nimpar, JCA
In the Court of Appeal In the Lagos Judicial Division Holden at Lagos On Friday, the 4th Day of March, 2016 Before Their Lordships Chinwe Eugenia Iyizoba Yargata Byenchit Nimpar Abimbola O. Obaseki-Adejumo Justices, Court of Appeal CA/L/320/2014 Between SHitech Construction Company Ltd .... Appellant And 1. Jude Ude (Deceased) (Mrs Chinwe Ezeti, Suing as Personal Representative of the 1st Plaintiff) 2. Segun Kamoru (Deceased) (Mrs. K. Kamoru, Suing as guardian of the 2nd Plaintiff) 3. Kazeem Fasasi (Deceased) 4. Nimota Idera Fasasi (Deceased) (Alhaji issa Fasasi, Suing as the guardian of the 3rd And 4th Plaintiffs) 5. Adeyemi Aderinola (Deceased) (Mrs. Adeyemi, Suing as a personal representative of the 5th Plaintiff) 6. Samuel Eromishelo (Deceased) (Mrs. Lynda Erumiseli, Suing as the guardian of the 6th Plaintiff) 7. Folashade Babrinde (Deceased) 8. Adebola Babarinde (Deceased) (Mr. Yekini Babarinde, Suing as the guardian of the 7th and 8th Plaintiffs) 9. Sekinat Tijani (Deceased) (Mr. Isiaka Tijani, Suing as the guardian of the 9th Plaintiff) 10. Esther Akufie (Deceased) (Mr. George Akufie, Suing as the guardian of the 10th Plaintiff) 11. Sultan Biodun Nuru (Deceased) (Mr. Biodun Nuru, Suing as the guardian of the 11th Plaintiff) 12. Bilikisu Ajike Dauda (Deceased) (Chief Alani Musari, Suing as the guardian of the 12th Plaintiff) And 179 Others ....... Respondents 13. Nigeria National Petroleum Corporation 14. Pipelines and Products Marketing Company Ltd (Judgment Delivered byYargata Byenchit Nimpar, JCA)
the fact that the Appellant did not file a counter-affidavit in opposition. Furthermore, they submitted that since the Appellant’s ground of appeal does not challenge the decision of the trial court rejecting the substance of the Appellant’s Preliminary Objection, there is no reason for this Court to exercise its power under Section 15 of the Court of Appeal Act in determining the Appellant’s Preliminary Objection. On issue number 2, the Respondents submitted that the trial court exercised its discretion judicially and judiciously in granting the application for amendment. They argued that the application to amend was to arrange the names on the writ and statement of claim to reflect just three names as Defendants after the 4th Defendant had been struck out, and therefore the mistake of counsel should not be visited on litigant. They further submitted that the courts must deviate from undue technicality to doing substantial justice and urged the Court
to uphold the decision of the trial court. They relied on the case of COLINTO (NIG.) LTD v DAIBU (2010) 2 NWLR (Pt. 1178) 213. Judgment and Court’s rationale. On Issue number 1, the Court observed that the Appellant’s preliminary objection challenged the jurisdiction of the trial court to entertain the application and the entire suit but the ruling of the trial court did not mention the preliminary objection nor any issues raised therein, but instead, talked about a counter affidavit which was never filed. The Court held that there was no obligation on the trial court to take the motion to amend the writ along with the preliminary objection, and that given the importance of jurisdiction to any proceedings, which is the life wire of any adjudication, the trial court should have considered the preliminary objection first before delving into the merits of the Respondents’ application for amendment. The Court reemphasised the general rule regarding an objection to the jurisdiction of a court, which is for a court to determine the challenge to its jurisdiction first before taking any further step in the proceedings and held that the failure of the trial court to determine the Appellant’s preliminary objection, infringed on the Appellant’s right to fair hearing. Thereafter, the Court held that the Respondents’ argument that the preliminary objection was construed as a counter affidavit cannot hold water because the two processes are separate processes that have no relationship whatsoever. The Court further held that the application to amend and the preliminary objection should have two different rulings to meet up with the requirement of due procedure in trial and the trial court erred in law by denying the Appellant hearing on its objection, as same amounted to a breach of the Appellant’s right to fair hearing. The Court relied on a plethora of authorities, including the cases of NATIONAL UNION ROAD TRANSPORT WORKERS & ANOR v ROAD TRANSPORT EMPLOYERS ASSOCIATION OF NIGERIA (2012) LPELR – 7840 (SC) and ONYEKWULUJE v ANIMASHAUN (1996) 3 NWLR (Pt. 439) 637. The Court resolved this issue in favour of the Appellant and held that the trial court did not consider the preliminary objection of the Appellant. On issue number 2, the Court considered the Appellant’s question which is whether the trial court, in granting the application for amendment, could validly substitute the dead plaintiffs with living persons, especially as the suit was initiated by dead persons and was void ab initio. In answering the above question, the Court held that there are undoubtedly two recognised capacities of persons who can sue in law. They are either natural persons with life, mind and brain, or other bodies or institutions having juristic personality. Subsequently, the Court observed from the Respondents’ writ of summons that the 12 Respondents listed therein were described as deceased and under each of the dead parties, are names of their representatives while the other 179 persons (alleged to be alive) were not named on the face of the writ. On the premises of the foregoing observation and the authority of the Supreme Court decision in the case of CHIEF JOHN EHIMIGBAI V. OMOKHAFE v CHIEF JOHN ILAVBA OJE IBOYI ESEKHOMO (1993) LPELR – 2649 (SC), where it was held that under our law a dead person ceases to be a legal person or to have legal personality and as such he can neither sue nor be sued, the Court held that the Respondents’ writ of summons was therefore void ab initio, as the named plaintiffs were dead before the initiation of the action. The Court held further that the fact that the 1st to 12th Plaintiffs referred to “179 others” as parties to the suit does no good to the writ. The Court took the view that the writ would have been saved if there was at least one living person named on the writ. The Court also held that by the time the motion to amend was filed, it was founded on nothing and the trial court was wrong to have considered it. The trial court therefore lacked competence to act on the writ, as same was incurably defective. The Court further held that amendments go back to the original date of the process amended and since the original process is defective, the amendment cannot cure that defect as a valid process cannot replace a void process. The Court relied on the case of ALHAJI FATAI AYODELE ALAWIYE v MRS. ELIZABETH ADETOKUNBO OGUNSANYA (2012) LPELR – 1966 (SC). Furthermore, the Court held that the Respondents’ contention that the error on the face of the writ was a mistake of counsel which should not be visited on the litigant is untenable in law as any tolerable mistakes take place within a suit properly commenced and not one that is a nullity ab initio. The Court therefore resolved issue 2 in favour of the Appellants and struck out the claim of the Respondents’ for want of jurisdiction. Having resolved the two issues raised in favour of the Appellant, the Court accordingly allowed the appeal. Appearances For the Appellant: A. Adejuyigbe (Mrs), with J.U. Ikiebe, R. Abdulahi, and A.M. Taiwo (Miss). For 13th – 14th Respondents: Babatunde Ogungbamila, M.O. Eigbokhan Reported By Adegbolayemi Temitope Alakija, Aluko & Oyebode, Lagos
31.05.2016
NEWS/5
L-R: Dean of Law, University of Nigeria Nsukka (UNN), Professor Nicholas Okafor, UNN Associate Dean, Barr Nkem Itayi, Chief Legal Officer Oando, Mrs. Ngozi Okonkwo, a guest and Mr. Mike Igbokwe SAN
L-R: Book presenter, Mr. Gbenga Oyebode, Chairman of the occasion, Professor Gabriel Olawoyin, Hon. Justice John Inyang Okoro JSC, author of the book, Dr. Oladapo Olanipekun SAN, his wife, Winifred, Justice Chidi Uwa of the Court of Appeal, Justice Chinwe Iyizoba of the Court of Appeal Lagos, author's mother, Omolara and father, Chief Wole Olanipekun SAN at the presentation of the book: "Banking: Theory, Regulation, Law and Practice" at the Oriental Hotel, Lagos last Wednesday
UNSBA Holds Legal Employability Summit The University of Nigeria’s Students Bar Association, (a practice arm of law students of the University of Nigeria Nsukka) held its job skills acquisition and informative event, the Legal Employability Summit on Thursday 12th day of May 2016 at the Moot Court auditorium, Law faculty UNN. UNSBA prides itself on being the leading professional law students forum modelled after the Nigerian Bar Association (NBA). The Employability Summit was a sterling addition to the recent national, continental and
global triumph which has seen the association and its members attend and emerge exceptionally at the Model United Nations in New York, in March this year, the African Court on Human Rights Competition in Arusha Tanzania and winning the Tax Oratory prize at the National Tax Debate. The association recently published its Bar journal, the ‘Legalogue’ as its enduring contribution to the growth of the law. The rising rate of unemployment and current scramble for the few law jobs available strengthened
the need to empower law undergraduates with the information needed for success in the legal profession. Panellists at the legal employability summit included, Mike Igbokwe SAN, Ngozi Okonkwo chief legal Officer Oando, Nicholas Okafor partner Udo Udoma & Bello Osagie and Stephen Nwoye Associate Aluko & Oyebode. They all stressed the need to stand out from the crowd, honesty, sound academic grades, a determined mind-set and delayed gratification as essential for success in the profession. The presence
of the Law Students of Abia state university and Enugu State university of Science and technology ensured that the far reaching impact of the insight shared by the panellists was not wasted. The Dean of Law UNN, Professor Chukwunonso Okafo shared his thoughts on the skills required to pursue a career in the academia. UNSBA has enjoyed sustained success this year and as expressed by its President, Michael Otegbulu, it is UNSBA’s desire that members are delivered into a bright future.
‘One-term for Political Office holders will Guarantee Infrastructure, Save Cost’ David-Chyddy Eleke in Awka An aspirant to the office of the National President of the Nigerian Bar Association (NBA), Mr John-Kyari Gadzama SAN has called for a review of the tenure of political office holders, saying that a single term in office for all elected political office holders holds great benefit for Nigeria. Gadzama who was in Anambra State yesterday for the 2016 Law Week of the Aguata branch of the Bar to present a keynote speech said several factors in the renewable four year term being practiced by Nigeria were limiting the development of the country. Speaking on the topic; ‘Second Tenure Agenda by Political Office holders: An Albatross to Good Governance in Nigeria: An Imperative for a New Road-Map’, he said study has shown that Africa, nay Nigerian leaders
always gun for a second term in office, and some would even like to be in office for life, given the opportunity, and that is why Nigeria should study the issue and know if a renewable term of four years each, was good for the country. "What I think we need is a single term of five or six years in office, and if you ask me, I will opt for six years as a middle course. Former President Obasanjo tried it, but it did not work because people think he is doing it to suit himself, but if we have a good President who means well for the country, and who will not do it because he wants it to suit him, but for incoming governments, then that is good." Gadzama said. He stated that in Nigeria, most elected office holders have been found to work for only two years, and they use the remaining two years to strategies on their
re-election, and when they get it, they spend the entire second term looting. “One may say that part of the advantages of a second term in office is to complete projects, and that familiarity will help the leaders to perform, but it also have disadvantages that outweigh the advantages.” “There is the abandonment of governance for campaigns, high cost of conducting elections every four years, unaccountability to the people in the second term and several others.” “My submission is that we should start now to, in our little way begin to call for the review of the tenure of public office holders in Nigeria. This will reduce cost of governance and also tame the flamboyance that goes with political office." Gadzama said. He however stated that to
achieve the best in a single tenure, the INEC should also be strengthened to ensure that election results reflect reality, as the wrong choice of candidate cannot be put on the people for a long period of six years, depending on the duration chosen by the people. Meanwhile, the Aguata branch of the NBA has thrown its weight behind the aspiration of Mr Gadzama for the National Presidency of the association. Speaking through one of its patrons, Barr. Aniazoka Zokas, the branch said no one is better qualified for the position than Gadzama, and also his coming to deliver a keynote speech in Aguata has further reinforced that belief, as three previous Presidents of the organisation clinched the positions just months after delivering keynote speeches in the branch.
LEGAL UPDATES A BRIEF BACKGROUND OF THE MARITIME SEMINAR FOR JUDGES The International Maritime Seminar for Judges was conceived of and started by the Nigerian Shippers’ Council (NSC) in collaboration with the National Judicial Institute, in 1995. Since the area of Admiralty Law was not taught in any of our universities at the time, the initial objective of the Seminar was therefore to illuminate the minds of jurists and judicial officers, with the knowledge, at least of the basics, of this relatively new area of the law. In addition to stimulating the thirst for knowledge of maritime law amongst Judges and practitioners, the seminars have provided a unique forum for convivial interaction between the Bar and Bench. Similarly, Judges and practitioners from around the globe have served as resource persons at the seminars and their contributions to the development and understanding of maritime law in this country have been most remarkable. Since 1995 when the seminar started, the NSC has never looked back. In active collaboration with the National Judicial Institute, the Council has regularly organised and held the seminars, with Judges of the Federal and State High Courts, Justices of the Court of Appeal and Supreme Court, Legal and Maritime practitioners, Legal Advisors of government agencies and private corporations, as the target of the seminars. Owing to the great successes recorded from successive seminars, the series has become internationally acclaimed with the increasing participation of Judges and practitioners from our brother African countries and most notably, Ghana. Happily, this year’s seminar will have in attendance the Chief Justices of the Republic of Ghana, Sierra Leone and the Gambia. This is not only reflective of the internationalised character the seminar has acquired, but also testimonial to its claim that the seminar has become an important and regular feature in the Judicial calendar. This year’s seminar which is the 14th in the series will have the former Head of State, Chief Ernest Shonekan GCFR, CBE as Chairman of the occasion, the Chief Justice of Nigeria, Hon. Justice Mahmud Mohammed CON, CFR, GCON will declare the seminar open while the Chief Host, the Hon. Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi, will deliver a keynote address. Some of the papers billed for presentation at this year’s seminar include:1. Introduction to Admiralty Law and Admiralty Jurisdiction, Speaker – Hon. Justice Ibrahim Buba, Judge, Federal High Court. 2. Electronic Evidence in Admiralty practice, Speaker – Olumide Sofowora, SAN. 3. Addressing African Maritime Cyber Challenges, Speaker – Dr. Karem Sumber – Lupson, Msc, PhD, Commissioner for African Maritime Safety & Security. The Chairman of the Maritime Seminar for Judges Committee Hon. Ibrahim N. Auta, CFR will be on hand to receive dignitaries at the occasion. For further information, please contact Bala on 08033229266
Litigant Expresses Frustration as Court Adjourns Judgment in Pre-election Case 8 Times Tobi Soniyi in Abuja Not long after the Chief Justice of Nigeria, Justice Mahmud Mohammed reminded Judges of the need to comply with the constitutional provisions mandating them to deliver judgment within 90 days after the completion of a case, a Litigant, Mr Ayodele Kusamotu has expressed frustration after a Federal High Court adjourned
his pre-election matter for the eighth time. A pre-election case in which the Plaintiff, Mr. Ayodele Kusamotu, is challenging the failure of the All Progressives Congress (APC) to issue to him a nomination form to contest in the Election Primary for the 2015 National Assembly election in Osun State, was again adjourned by the Federal High Court in Abuja.
Kusamotu said the constitutional period of three months within which Judgment was supposed to be delivered after the adoption of final addresses by parties lapsed in March. The case which is before Justice Evoh Chukwu had suffered several adjournments before it was eventually heard and concluded on January 11, 2016. The Chief Justice of Nigeria,
Justice Mahmud Mohammed had at an induction course for new Judges reminded Judges that they must always comply with the provisions of Section 294(1) and (6) of the 1999 Constitution which mandates Judges to deliver judgments within 90 days of submission of parties' final addresses. The CJN told the Judges that if for any reason they could not deliver the judgment within
90 days the defaulting Judges must transmit a report to his office and show cause why they were unable to comply with the provisions of the Constitution. "Failure to abide by these statutory orders amounts to misconduct," he added. After the instant case was concluded on January 11, it was first adjourned to February 25th for judgment. However, since
February 25th, the delivery of the judgment has been adjourned 6 other times to February 29, March 9, April 27, May 3, May 6 and May 18. On Wednesday May 18, the judgment was further adjourned to May 31st. However, the trial Judge, Justice Chukwu was said to be critically ill on the last two
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31.05.2016
Capital Market Solicitors Association to Train Members on Anti-Money Laundering Akinwale Akintunde The Capital Market Solicitors Association (CMSA) has said that it will, as part of activities for this year, organise a training programme on Anti-money laundering for its members. Mrs. Yinka Edu, Chairman of the association disclosed this last Tuesday in her remarks on some of the activities planned for the association this year at its 2016 Annual General Meeting (AGM). The CMSA is an independent self-regulatory body of solicitors and commercial law firms engaged in capital market practice in Nigeria. According to Mrs. Edu the training which will be organised in collaboration with the Stock Exchange Commission (SEC) is necessary because of the increased focus on Anti-Money Laundering and the national risk assessment process Nigeria is presently going through. “Now, focusing on some of our plans for this year, recently, there has been an increased focus on Anti-Money Laundering and, as you may know, Nigeria has been going through a national risk assessment process. This has involved an assessment of capital market transactions and the SEC group carrying out the risk assessment has met with the Association as part of that process.” “There is a national workshop in collaboration with the World Bank to disclose the outcome of the study and further to this, the Association will be seeking to work with the SEC to organise a training programme for our members on Antimoney laundering”, she stated.
The CMSA’s Chairman further disclosed that the association, with the support of the International Swaps and Derivatives Association (ISDA), will also host a two-day conference targeted towards discussions on developing the derivatives market. According to her, the conference, which will be held in October this year will be a market event for all capital market participants and interested parties. “Although it will take a slightly different format from our usual Business Luncheon, it is intended that this will replace our annual Business Luncheon for this year.” “We look forward to your support for this event which we hope will assist with the promotion of the local derivatives market. We already have a group of lawyers working with the FMDQ to review the Model Netting Law with a view to having it introduced as a Bill to the National Assembly.” “This event is seen as an important step towards the development of a derivatives market and so, we would very much appreciate your assistance. We already have a group of lawyers working with the FMDQ to review the Model Netting Law with a view to having it introduced as a Bill to the National Assembly.” “This event is seen as an important step towards the development of a derivatives market and so, we would very much appreciate your assistance.” “We are also considering a number of other initiatives designed to support the market and
L-R: Member CMSA BoT, Chief ZikObi II, CMSA Treasurer, Mrs. Elizabeth Osoka, Vice-Chairman, Mrs. Ayotunde Owoigbe, Chairman, Mrs. Yinka Edu, BoT Chairman, Chief Dipo Odujinrin, Social Secretary, Mrs. Ebele Eneda, Asst. Secretary, Mrs. Damilola Adetunji and Secretary, Mr. Benjamin Obidegwu at the 2016 Annual General Meeting held last Tuesday
will be looking for member firms to join some of these initiatives” Mrs. Edu explained. She also informed members that association is already finalising plans towards the publication of the first edition of its Quarterly Newsletter. According to her, the Newsletter, which will be circulated both locally and internationally will be edited by a team made up of CMSA's Assistant Secretary, Mrs. Adetunji, Social and Welfare Secretary, Mrs. Ebelechukwu Eneda and Publicity Secretary, Mr. Suleiman Yunusa. While welcoming volunteers to join the committee, Mrs. Edu said “we already have commitments from some of our international
law firms to contribute articles to the Newsletter. We hope that the Newsletter will have the support of members and that we will see many member firms contributing articles to the Newsletter.” “Finally, I would like to use this opportunity to thank our members for your continued support of the association and I look forward to working more closely with many of you in seeking to realise the objectives of the Association. We do encourage member support, and so please do not hesitate to let any member of the Executive Committee know if you have any suggestions on how to make this year a more fruitful one” she stated.
LITIGANT EXPRESSES FRUSTRATION AS COURT ADJOURNS JUDGMENT IN PRE-ELECTION CASE 8TH TIME CONTINUED FROM PAGE 5 dates (May 6th and May 18th). In his amended originating summons, with number, FHC/ABJ/CS/1038/14, the Plaintiff alleged that his party, the APC, unjustifiably refused to issue a nomination form to him to participate in the Election Primary for Ifelodun/ Odo-Otin/Boripe Federal Constituency election Osun State. He said the party refused to issue the form to him despite being the only aspirant who allegedly paid for the nomination form of the party. He joined as the Defendants, the APC, the
candidate presented by the party and who won the 2015 House of Representatives election in the constituency, Adeyinka Ajayi, and the Independent National Electoral Commission. He sought among other prayers, a declaration that having been the only aspirant who paid the nomination fees of the APC, he (the Plaintiff) "is the only one qualified and be declared under section 87(6) of the Electoral Act, 2010 (as amended) as automatic candidate of the 1st Defendant (APC) for the Ifelodun/Odo-Otin/ Boripe Federal Constituency of Osun State to the House of Representatives."
He asked the court to declare Ajayi not qualified to be the candidate of the party "having failed to pay for and produce payment advice slip/bank teller for the mandatory nomination fees of N2million as pre-condition for eligibility and qualification for nomination of the 1st Defendant". He also sought a declaration that having been the only one who paid for the nomination form as mandatorily required, he was entitled to be issued a nomination form" and not to be substituted for a non-qualified aspirant/ candidate (the 2nd Defendant)."
He also asked the court to declare that the 2nd Defendant (Ajayi) "is not qualified and his purported nomination as the candidate of the 1st Defendant is illegal, unjust, unconstitutional and in breach of paragraph 4, pages 5 and 6, line 2 of the 1st Defendant's (APC's) guidelines (Exhibit C) having failed to pay for mandatory and compulsory nomination form of the 1st Defendant." He asked the court to declare that Ajayi "shall vacate the seat of Ifelodun/Odo-Otin/Boripe a Federal Constituency of Osun State, for the Plaintiff at the House of Representatives".
Legal Personality of the Week Oladapo Olanipekun
‘The Legal Profession Does not Compromise it only Rewards You when You have Given Your Best’ any day as my worst day as a lawyer. So far, I have had no regrets being in the profession, and I believe this is my own life’s calling.
I am Dr. Oladapo Olanipekun SAN, a Partner with Wole Olanipekun & Co, a law firm with head offices in Lagos. I would describe myself as a scholar-practitioner. My practice covers dispute resolution, arbitration and advisory services. My research interests are in financial law and regulation, consumer protection, company law and commercial law, generally. My academic qualifications include a Bachelor’s degree from the University of Lagos, as well as Master’s and Doctorate degrees from the University of London. I come from a family of lawyers, who include my dad, my three siblings and my wife. Have you had any challenges in your career as a lawyer and if so what were the main challenges? Yes, I have had challenges in my career like every other person. I also have to say that the legal profession is not isolated from the general Nigerian professional or career environment, so that lawyers also have to deal with the challenges faced by other professionals. On a personal note, I do not see challenges but opportunities. What I would have described as a challenge is the fact of my background. Given that I am the first son of an illustrious father with remarkable achievements in the profession, I knew from the onset that there would be high expectations that I had to meet. The challenge was this – if I failed, then the failure would have been considered as tragic, given my background. On the flipside, success
What was your most memorable experience? I would say my most memorable experience, till date, was on 10 July 2015 when I was elevated to the rank of a Senior Advocate of Nigeria (SAN).
Oladapo Olanipekun
would also be unsung, as it were, since many would regard it as expected. This is what I would have described as a peculiar challenge, but then I had a proper understanding of my place from the onset of my career. What was your worst day as a lawyer? I have had quite a few days when things did not really go my way, but I would not describe
Who has been most influential in your life? I am a product of several influences. In terms of human and professional influence, I would identify my father, Chief Wole Olanipekun SAN as the most influential. I have also established strong mentee-mentor bonds with carefully chosen mentors in and out of the profession. These relationships have become some of my most cherished and fulfilling over the years. Why did you become a lawyer? This is an interesting question as most people assume that I became a lawyer naturally because of my family background. However, as a child, I always had the dream of becoming a computer engineer. This was an ambition that my parents supported actively, particularly my dad. As I grew older, I found myself gravitating towards the arts and social sciences and away from the core sciences. I then decided to study privately
for the GCE O’levels in arts and social science subjects, even when I was officially a science student. I passed the examinations and found myself as a law student at the University of Lagos. The rest is history. Chapter 16 and verse 9 of the book of Proverbs talks about a man’s heart devising his ways but God directing his steps. This scripture applies on all fours to my becoming a lawyer. With the benefit of hindsight, I realise how God mercifully realigned me at a time I could have strayed innocently. What would your advice be to anyone wanting a career in law? Be committed, be diligent, have short, medium and long term goals, establish and maintain relationships with the right mentors. Integrity is fundamental. The legal profession does not compromise. It only rewards you when you have given your best and your all, but it certainly rewards. If you had not become a lawyer, what would you have chosen? I would have been a computer engineer. Where do you see yourself in ten years? By the grace of God, in 10 years I hope to have made remarkable contributions to the law and humanity. I hope to be in a position where I am exerting positive and Godly influence. I also hope to have mentored other lawyers with achievements that surpass mine.
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Building a Strong Federal - State Relationship for Sustainable Growth in the Mining Sector Olasupo Shasore Introduction “... nothing short of a radical shift (in our attitudes) in the diversification of the economy.” he vastness of Nigeria's minerals resources cannot and should not be over emphasised. We began to explore and exploit her natural mineral resources in 1902 and in its prime, the solid minerals sector was one of the largest producers of tin and coal, as well as a producer of a considerable 1.4 tons of gold annually. The history is now well known due to ill-effected policy changes and lack of proper attention, the sector saw a steady decline and today, mining and solid minerals only account for about 0.3% of the gross domestic product of Nigeria. The Nigerian oil and gas sector has played a central role in the Nigerian economy. The revenue realised from the Nigerian petroleum industry has been the country’s fiscal mainstay and remains a major revenue source. The reality of the recent downward trend of oil prices and its impact on the revenue and foreign reserves of the country however means that it has never been more imperative for Nigeria to protect herself by diversifying her revenue streams. Nigeria is enriched with over forty (40) types of minerals including marble, gypsum, lithium, silver, granite, gold, gemstones, bentonite, iron ore and talc. The mining and solid mineral sector of the extractive industry in Nigeria has always been a viable greenfield and is now getting the attention it deserves, having been earmarked as a key source of economic development and diversification of the revenue streams of the country. It is however incontrovertible that the sector is under-performing and plagued with issues ranging from inadequate infrastructure to illegal artesian mining and community challenges. These issues stifle potential by deterring potential investors whose resources are vital to the revitalization of the sector. In order to address the sector and move Nigeria from being a mineral country to being a mining country we must bear the above philosophy to heart - we need to be radical in thinking and attitude towards the challenges. Now let's consider the challenges.
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CHALLENGES Before we get to mitigation which is the topic of this keynote we need to dimension a few of the challenges: I) Low domestic and foreign investment appetite leading to minimal project funding II) Gap in sector infrastructure support: - access roads - Rail from site to use and or export III) legal Risk uncertainty IV) Illegal mining & community action RISK The foremost of these issues are the risks presented by the sector’s legal and regulatory framework. This framework is the foundation upon which a sustainable, attractive and globally competitive private sector-led industry must be based and must therefore be solid to give the mining sector its best chance. Previous reforms in the mining sector led to the enactment of Minerals and Mining Act of 2007 (“the Act”). These reforms have helped to address certain problems faced by stakeholders in the sector such as security of mineral rights achieved by the re-characterisation of the Mining Cadastre Office (“MCO”) as an autonomous body separate from the Ministry, and the transferability of mineral titles validly granted under the Act, which have positively affected the sourcing of funding for mining projects, as mining titles can be used as security for such sourcing. LEGAL CERTAINTY: LAND v MINERAL RIGHTS Policy uncertainty Political risks faced by the sector include slow reform implementation, policy failures and policy U-turns which are sometimes a feature of political turnover. Others stem from the overlapping jurisdictions of the several authorities involved at several levels of government in the licensing process for mining in Nigeria Legal title conflict & uncertainty On the legal front, the key risks arise from uncertainty of legal ownership of mining rights between the Federal and State Governments. This uncertainty is created by apparent conflicts in the Constitution and legislation affecting the activities of the sector. The Land use Act.
At S. 315 (5) of the constitution the land Use Act assumes a curiously problematic status (5) Nothing in this Constitution shall invalidate the following enactments, that is to say - ... (a) (B) (C) (d) the Land Use Act, and the provisions of those enactments shall continue to apply and have full effect in accordance with their tenor and to the like extent as any other provisions forming part of this Constitution and shall not be altered or repealed except in accordance with the provisions of section 9 (2) of this Constitution. As we all know the Land Use Act vests title to all land within the state in the Governor of that state. Giving the controvertible control of above ground the so-called 'surface' rights over land where mineral title below ground is otherwise under the exclusive control of the Federal Government. Problems will arise where licenses to mine below surface is given to a person other than the holder of a statutory right of occupancy over the land. The legislative list in the constitution also adds to the problem. The constitution Item 38 exclusive list Item 39 in Part I of the Second Schedule of the Constitution which places mines and minerals on the exclusive legislative list and the fact that “lands” still remains a residual matter is a conflict. Another conflict arises from the fact that the Mineral and Mining Act provides that the entire property in and control of all the minerals in or on any land etc. in Nigeria vests in the Federal Government, while the Land Use Act vests all land within a State in the Governor of that State. In order to successfully attract investment, certain steps must be taken to de-risk the sector Whereas Land under same constitution is a residual matter within the exclusive purview of the sub national States. A key risk to the viability of the sector however still arises from the uncertainty of ownership of mining rights between the Federal and State Governments. This uncertainty is created by apparent conflicts in the Constitution and other legislation affecting the activities of the sector, including the Act and the Land Use Act. The Act provides that all control of and property in minerals in Nigeria are vested in the Federal Government. The Act also exclusively empowers the Federal Government to grant property rights in such minerals to third parties through licenses and prescribes engaging in mining activities without the requisite authority as an offence. On the other hand, the Land Use Act vests all land within a State in the Governor of that State and thus places the power to regulate matters relating to access to land for mining activities, including the right to grant rights of occupancy and to revoke such rights of occupancy for overriding public interest within the purview of state government. This position is further fortified by section 315 of the Constitution which protects the provisions of the Land Use Act from being invalidated by conflict with the Constitution. The process of obtaining mining titles is therefore not straightforward particularly where the state and federal governments have contrasting objectives. This tension has kept the law courts busy for decades. Oil and pipeline community claims quickly progressed to strikes lock out community agitation to where we are now - all out insurgency. It drove exploration to the relatively less of an impact on the oil and gas industry partly because a major part of exploratory and procurement operations in the sector now takes place offshore, outside the scope of the areas contemplated by the Land Use Act. A milder version already exist in mining communities along with actual state government non cooperation the sector has been deprived of any meaningful investment because of this title and community risk. Do we want to continue to suffer this cycle in the mining sector? We think not. CENTRAL CONTROL/ COMMUNITY ACTION One of the main risk factors discussed above is central control. The central control of the country’s minerals by the Federal Government in itself is also, respectfully, a hindrance to the success of the sector as a source of economic development for the country. It should by now be incontrovertible that the size, authority and powers of the Federal Central Government of Nigeria are in need of substantial reallocation. Centralism in policy making creates social inequities and economic injustice which in turn ensure that local communities set up mental and attitudinal barriers to central control, as in the Niger Delta with the oil and gas sector, and many mining communities.
Minister of Solid Minerals, Dr. Kayode Fayemi
This “top -down” development strategy from center “downwards” is what Nigeria has practiced with evidently little material success. Much, if not ALL of the present day disaffection of Nigerians, resulting in conflict and tension, arises from or is traceable to an over-centralized federal control. The true building blocks of economic development of national assets is in building a “bottom-up” system driven by local inclusion. Where title and control of minerals are concerned 'subsidiarity' should replace 'centrality'. The evidence against centralism is clear: “centralism” has led Africa to some of the weakest governments in the world. Lacking in effective budgeting and population administration and leading to waste. All over Africa and in Nigeria centralism has led to ethnic conflict and policy disaster as the ill- equipped and poorly connected central government seeks to impose in almost imperial fashion decision alien to the locality. Finally centralism has not been an effective remedy for the problems of multi-ethnicity. It has succeeded nowhere and is often found where there is national poverty. MITIGATION: STATE /FEDERAL COLLABORATION Long Term: Legislative Reform There is thus clearly a need for an amendment of the legislative framework of the mining sector in order to successfully attract investment. Certain steps must be taken to de-risk the sector and in any proposed reform, the Nigerian government must play a frontal role. An amendment of the Constitution must be as laid down in Section 9 thereof. Only the National Assembly is empowered to initiate the process of constitutional amendment. The process involves the proposal of such amendments by the National Assembly and the subsequent ratification of the amendments by the State Houses of Assembly. Similarly, the process for the passing or amendment of other laws is clearly laid down. A bill is first introduced by a Member of a State House of Assembly or the Senate following which it goes through the first and second readings. This is followed by a critical review by an assigned committee. The bill then goes through a third reading after which a clean copy is printed and forwarded to the relevant House of Assembly and joint conference committee is constituted, where necessary. The bill is finally enrolled for signature by the President and becomes law where the President agrees with the bill. Immediate term Strategy: De - Risking - Catalyst to development We recommend a Memorandum of Agreement between the states and Federal Government this we believe will give fiscal platitude; and the successful establishment of greater legal certainty for private sector investors with respect to the ownership of mining rights in Nigeria needs the completion of a full legislative cycle for new legislation and possibly the longer process of Constitution review. A solution to the issue in the short term and a way to clarify legal structure is the negotiation and execution of Memoranda of Agreement (“MOA”) between the Federal Government and the relevant State Government(s). The MOA could serve as short term solutions that would clearly set out the parameters of the partnerships
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31.05.2016
Chief Gabriel Nkadi Osakwe PHOTOS: Sunday Adigun
‘Partnership Requires Trust, Honesty, Integrity, Perseverance and Total Commitment to Practice’ After 44 years at the Bar Chief Gabriel Nkadi Osakwe has undoubtedly earned the esteem and accolade of recognition as a fulfilled legal practitioner. As he turned 70 recently he shared his experience on a wide range of issues of contemporary importance to the country and legal practice in a conversation with May Agbamuche-Mbu, Jude Igbanoi and Tobi Soniyi
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our law firm, Sofunde, Osakwe, Ogundipe & Belgore is one of the longest surviving law partnerships in Nigeria. Given the fact that we have not had the benefit of seeing many partnerships that have survived their original partners, standing the test of time as yours, what has been the secret of survival for almost three decades? Trust, honesty, integrity, transparency, accountability, perseverance, spirit of give and take, total commitment to the practice, contentment and friendship. The rank of Senior Advocate of Nigeria has existed as a rank of distinction and the attainment of the highest echelon of achievement in the legal profession in Nigeria. It is a status akin to the Queen’s Counsel of England and Wales separating the inner and outer bar for centuries. However there have been calls to remove the rank of Senior Advocate from the Nigerian jurisdiction for failing to be awarded on a transparent or fair merit system. What is your view on the call by some lawyers for the abolition of the rank of Senior Advocate of Nigeria?
It is true that the award has not been done on a transparent or fair merit system. But you should not throw away the baby with the bath water as the saying goes. Instead, the system should be sanitised. The award should not be seen as a commodity for sale, as it is presently perceived. It should be awarded only to those lawyers who, not only have the requisite number of cases, but have also distinguished themselves in the profession by contributing to the development of the law. A lawyer who takes a point of law in an area he perceives there is an ambiguity or lacuna up to any level but preferably to the Supreme Court, is said to have contributed to the development of the law. Presently, it is seen by most lawyers as a necessity for advantage/ social recognition. To meet the numbers, I am told that some lawyers go to beg for/buy cases (mostly criminal cases) in which they have next to no experience. As soon as they meet the numbers, they start lobbying the judges. It then appears that merit is evaluated by whether or not you meet the numbers or federal/gender character. To sanitise the system, I propose as following: (a) The Judiciary should not be in charge as SAN’s should be chosen by their peers and, also to avoid the indirect consequence
of the leaders of the bar (who recently have only been SAN’s) being chosen by the Judiciary. (b) It is discriminatory against litigants in court. Litigants should have equal rights in court proceedings. A situation where Senior Advocates are accorded special attention/privilege in court during trials is wrong. The privilege accorded Senior Advocates of Nigeria by law is limited to call over days (motions) i.e., to mention
"THE JUDICIARY SHOULD NOT BE IN CHARGE AS SAN’S SHOULD BE CHOSEN BY THEIR PEERS AND, ALSO TO AVOID THE INDIRECT CONSEQUENCE OF THE LEADERS OF THE BAR (WHO RECENTLY HAVE ONLY BEEN SAN’S) BEING CHOSEN BY THE JUDICIARY"
their cases out of turn. Many Lawyers/ Judges are ignorant of this. You have seen over four decades of the legal professional. You have seen the great men and women of this noble profession stand up to popular opinion, to the government and to traditional beliefs that were retrogressive. How can the Bar today learn from the great lawyers of old in influencing society positively and encouraging the principles of Rule of Law and accountable governance? By emulating those great men and women in their solid character and courage to speak out against what is wrong. The current administration assumed office amid much concern about corruption and impunity in public office. President Buhari, as part of his election campaign, vowed to eradicate corruption and restore accountability in public service. What is your opinion of the Government's fight against corruption vis-a-vis the allegation that the principle of rule of law is being compromised because of partisanship and high-handed investigations by anti-corruption agencies? Corruption should be fought by this Administration in accordance with the Rule of Law. A situation where a suspect is locked up first before concluding the investigation on the matter is against the
31.05.2016 "IT IS DISCRIMINATORY AGAINST LITIGANTS IN COURT. LITIGANTS SHOULD HAVE EQUAL RIGHTS IN COURT PROCEEDINGS. A SITUATION WHERE SENIOR ADVOCATES ARE ACCORDED SPECIAL ATTENTION/ PRIVILEGE IN COURT DURING TRIALS IS WRONG. THE PRIVILEGE ACCORDED SENIOR ADVOCATES OF NIGERIA BY LAW IS LIMITED TO CALL OVER DAYS (MOTIONS) I.E., TO MENTION THEIR CASES OUT OF TURN. MANY LAWYERS/JUDGES ARE IGNORANT OF THIS" Constitution of the land. They should be ready to prove their case in court before tampering with the liberty of any citizen. The fight against Judicial Corruption has now led to the recent indictment of a number of Judges sitting in superior courts. What additional measures would you suggest in the campaign against corruption at the Bench, to ensure Nigeria has a clean and incorruptible Judiciary? I do not think that Nigeria can have a clean and incorruptible Judiciary. The Judiciary is part of a corrupt society, and members of the bench are appointed from an already corrupt society. But we can try by: (a) The process of appointment of judges should be based only on merit. (b) Where the allegation of wrong doing against a judge on the face of it has merit, the judge should go on suspension until the matter is resolved. The recent Panama papers leak has brought to the fore ethical issues of the use of tax havens by corporations and data protection. What are your views on the use of tax havens by companies? What implication does the use of tax havens have on the fight against corruption? Human beings, by nature, seek and take advantage of benefits. So long as such are legal, I have no objection. The use of tax havens by companies is not by itself illegal. It is a place where by law you are entitled to pay little or no tax and also hide your identity in obscurity. But there could be moral/legal issues as regards public officers as in the case of the Prime Minister of Iceland who resigned because as at the time the economy of his country was down and a bailout was being sought, he was benefiting from the
COVER/9 Panama Tax havens. A public officer in Nigeria is required by law to disclose his assets. It will therefore be illegal for him to take advantage of a tax haven which allows secrecy. In the UK, public officers criticised a US company, Starbucks on a moral front (who they acknowledged not to have broken any laws) for paying unreasonable tax in the UK, although it was making so much money there. Starbucks was now obliged to pay substantial tax it was not obliged by law to pay. It will therefore be morally wrong for individuals in such government to be Shareholders in companies that benefit from tax havens. As regards corruption, in so far as a tax haven provides for secrecy, it makes it easy for public officers to channel funds obtained by corrupt means into such companies with little chance of being caught or such funds being recovered from them. The Administration of Criminal Justice Act 2015 was passed with the hope that it would reform our Criminal Justice System and usher in greater efficiencies in the nation’s courts. Now the act has been in effect for a full year do you share the view that it is producing the reforms and efficiencies hoped for? No I do not share the view that it is producing the reforms and efficiencies hoped for. This is for the simple reason that our problem is one of attitude and not so much of reforms in the law. You can enact the best laws and rules in the World and it will still not work in our clime, because of our attitude to the reforms. I say that because, when you have the best or model laws, you still need human beings to implement or enforce those laws. The issue is whether the people to apply those laws are prepared to make it work. A classic example is the criminal trial of the Senate President at the CCT. You had a situation where lawyers went on appeal on a preliminary issue to the superior court and were seeking for an order of stay of proceedings, up to the Supreme Court in spite of the very clear provision of Section 306 of the Administration of Criminal Justice Act 2015, which says there shall not be an order for stay of proceedings in the trial court where a party files an interlocutory appeal. Clearly, you can see that the mischief Section 306 is seeking to cure is the inordinate delay suffered from an order of stay of proceedings, yet you find lawyers still seeking for such order, thereby causing delay in the proceedings in the trial court. So until the users and enforcers of the law are prepared to change their attitude, the reforms in the law will not achieve the desired effect. Despite Arbitration’s obvious effectiveness, litigation remains the most used means of resolving commercial dispute. Why do you think this remains the case? Well, I think it is more of an awareness issue. The more lawyers are aware of arbitration and its effectiveness, the more it will be inserted in Commercial contracts. You know that the basis for referring disputes to arbitration is commercial, whereas litigation is Statutory. So if parties do not insert it in their commercial contracts, you have to resort to litigation. The more people are aware of arbitration and its effectiveness, the
more they will insert it into their contracts. It is widely believed that in today’s practice of Litigation lawyers are skilled in employing delay tactics that make it difficult for the courts to decide cases within the shortest time possible. What can be done to rid the practice of Litigation of these dilatory tactics and reform the administration of justice in Nigerian courts? I have always believed that our problem is with the system (I mean the stakeholders, the lawyers and judges) and not so much of our rules or our laws, though some of the laws are archaic and need to be brought to terms with the modern times and technology. I believe that you can get the best rules in the World, but if the Courts and the lawyers are not in tune with them, they will not achieve the desired result. In 2004, when Professor Yemi Osinbajo, then the Attorney General of Lagos State, introduced the 2004 High Court of Lagos State (Civil Procedure) Rules, fashioned after the Civil Procedure Rules in England and Wales, which introduced innovations such as frontloading, amongst others, the idea was to have speedy dispensation of justice and make litigation more efficient, but can it be said that there has been a significant improvement from the old days? My answer is No. In fact, it has even taken a downspin now. Matters are still pending in court for several years, notwithstanding those innovations that are working in other climes. So you will agree that it is not the rules but the stakeholders that are the ones that need to change their attitude and orientation. Due to the excessive delay occasioned in the resolution of Election Petitions, the Legislature introduced section 134(2)’s 180 day time limit within which electoral disputes must be resolved. Since its introduction some have argued that section 134(2)’s provisions for 180 days for the resolution of election
"CORRUPTION SHOULD BE FOUGHT BY THIS ADMINISTRATION IN ACCORDANCE WITH THE RULE OF LAW. A SITUATION WHERE A SUSPECT IS LOCKED UP FIRST BEFORE CONCLUDING THE INVESTIGATION ON THE MATTER IS AGAINST THE CONSTITUTION OF THE LAND. THEY SHOULD BE READY TO PROVE THEIR CASE IN COURT BEFORE TAMPERING WITH THE LIBERTY OF ANY CITIZEN"
petitions violates the right to fair hearing by restricting the Petitioner’s time to prepare and argue his case. Do you believe that the 180 days for the resolution of Election Petitions is a violation of the right to fair hearing? No, I do not believe so. The right of fair hearing has been circumscribed by sec. 285(6) and (7) of the 1999 Constitution as amended. The background to the introduction of the 180 day provision was that election petitions took an inordinate length of time, which is an undesirable distraction to people running the affairs of the state. You will recall the Osun State experience, where Governor Olagunsoye Oyinlola was in government for 3 years and 6 months or so out of a 4 year tenure, before the Court declared that he was not the rightful occupant of that seat. Meanwhile, he had been paid salaries for that long and occupied the seat for that long. To cure that mischief, we then had the 180 days provision inserted in the Constitution, in order to ensure that election matters are determined expeditiously and the rightful owner of the peoples mandate can concentrate on carrying out the mandate. As a matter of law, the 180 days provision does not amount to an infraction of the fair hearing requirement, for the reason that it is also a Constitutional provision i.e. Sec. 285 (6). Thus infraction of the Constitution does not arise. Perhaps, as an issue of fact, it may appear to be unfair, because it will appear that 180 days may not be practical to establish a case, given the volume of materials a petitioner needs to prove his case. How can a court determine a petition regarding the presidential election in 180 days, and the petitioner has only 10 days to prove his case of irregularity for instance, in 774 local governments? The only remedy to this unfairness will be an amendment of the above stated Constitutional provision limiting the delivery of judgment by an election tribunal to 180 days. How important do you think the rendering of probono services is to the growth of a lawyer and by extension the Nigerian legal industry? Why do you hold these beliefs? It is part of our professional ethics to do probono cases. The nation is currently witnessing a dangerous escalation of violence allegedly perpetrated by nomadic herdsmen wreaking havoc and mayhem on farming communities in the South East and South West of the country. A posited solution to this violence has been a National Grazing Reserves Bill which is intended to identify and preserve areas of land for grazing. Would you support such a law? Do you see it as the solution to the escalation of violence we are witnessing? I will not support such a Law. It is unrealistic in a federal system of government which we pretend to operate in Nigeria. Moreover, there is bound to occur, limitless ethnic clashes. I will rather suggest creation of Grazing Reserves on areas in the normal native soil of the cattle merchants. The creation of cattle routes as some have suggested may be difficult to implement and police. After much controversy the 2016 budget has been passed, but what do you see as the effect of originally benchmarking estimated revenue at $38 per barrel, when it now sits at $42 per barrel? The difference should be put back into our reserves. The Buhari Administration in the past few months has introduced several policies to restructure the oil and Gas Industry including amending the Petroleum Industry Bill. The National Assembly is also seeking to amend the Nigeria Liquefied Natural Gas (NLNG) Act. How would you assess the impact of these legal changes on the oil and gas industry? The Petroleum Industry Bill is yet to be passed into law. Unfortunately, the undue delay has been caused by personal, group and ethnic interests. From the proposed bill, there ought to be substantial positive changes in the industry. We await the passage of the said bill into law. In spite of the privatisation of the power sector, Nigerians are still faced with inconstant power supply caused by, CONTINUED ON PAGE 10
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Price: N250
MISSILE Buhari to N’Delta Militants
“The recent spate of attacks by militants disrupting oil and power installations will not distract us from engaging leaders in the region in addressing Niger Delta problems. If the militants and vandals are testing our resolve, they are much mistaken. We shall apprehend the perpetrators and their sponsors and bring them to justice” – President Muhammadu Buhari warning Niger Delta militants to stop further attacks on oil industry facilities in the oil-rich region, or risk being arrested.
EDDIEIROH’S INTERVENTION
eddie.iroh@thisdaylive.com
APC: Of Slogans And Programmes
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here is an Igbo adage that says if you put your ear close to the ground you would hear the ants whispering. I will say that if President Muhammadu Buhari and his All Progressives Congress (APC) government listened hard enough, they would hear Nigerians chanting a variant of the 80s pop hit: Where is the love you promised me? Where is the CHANGE you promised us? And as well the people might. For, as the president and his party will now have come to realise, one year is a lifetime in politics. But let us try to put things in perspective. The first thing for both the government and the governed to appreciate is that a slogan is not a programme. It is at best a promise of a programme of action. Nearly every political leader seeks the mandate of the people with a fetching and almost irresistible slogan, a promise which captures the public imagination. In our contemporary times, President Umaru Musa Yar’Adua rode to power on the slogan of Rule of Law. Goodluck Jonathan galloped into Aso Rock on the horseback of Transformation. In more distant climes and times, John F Kenney sought and won the presidency of the United States on the promise of a New Frontier. More recently Barack Obama, like our own Buhari, won over the populace with the slogan of CHANGE (Yes We Can), just to name a few. It is, however, the degree to which an administration is able to translate the promise of a slogan into a programme of action which measures the success of such government. In the case of Nigeria, while many cynics would regard most slogans and campaign promises as political 419, Buhari was able to be trusted by the majority of voters because of his own personal reputation for principled politics and almost Messianic sense of mission. Thus to many Nigerians, if Buhari said change was coming to Nigeria, then they have every reason to expect change in every meaning of the word. But after one year of APC in power, few would argue that Nigerians are too impatient in demanding to see the change that they were promised. To be fair, Buhari must get full credit for fighting Boko Haram to a standstill at least so far. To that extent, he has fulfilled one of the cardinal duties of the president and commander-in-chief of a nation, namely the protection of life and property of the citizen. To what extent this achievement may be vitiated by the emergence of and his tepid response to the new threat posed by the armed cattle hands from his Fulani ethnic stock has to be a subject of intense debate in the coming months. His eventual response to this particular menace will inevitably be measured against his threat to crush the burgeoning agitation for Biafra and renewed violence in parts of the Niger Delta. To brandish an iron fist against pro-Biafran agitators who are merely waving palm fronds in peaceful protest, while treating with kid gloves Fulani marauders armed with assault rifles cannot be judged by any fair mind as even-handed. And as an experienced solider and politician, Buhari would know that lack of even-handedness in dealing with sensitive issues in a diverse polity like Nigeria has been the Achilles heel of Nigerian unity. Similarly, Buhari’s promise to fight corruption must be seen as work in progress, but certainly work that has begun in earnest. While the wheel of the judicial machine grinds out its slow and hopefully steady rhythm Nigerians would have to be patient to avoid any semblance of guilt before trial. Beyond these two admittedly critical areas, the rest of the promise of Change is on trial and soon the jury will be out. But so far from within and outside of Nigeria, there is a perception of
Buhari lack of focus as to what Change should really mean and how it should impact on the governed. The first faux pax by this government was to fail to recognise that big Change often begins with small things, mostly gestures that telegraph government’s sensitivity to public opinion and a feel-good factor on the part of the governed. I give the singular example of John Magulu, the new President of Tanzania who was elected roughly the same time as Buhari. One of the first acts on assuming office was to cancel the elaborate fiesta planned for the country’s Independence anniversary. He drastically downsized the celebration and used the $300 million he saved to provide beds and other equipment for the nation’s major hospital where patients had been sleeping on bare floors. He slashed ministerial limousine fleets and ordered that all conferences outside the country should be attended by Tanzanian Ambassadors in the host countries and not by ministers and officials claiming Estacode and flying first class. Within a month in office, the president’s sweeping changes caught the public imagination at home and abroad, and earned him the sobriquet of “the bulldozer.” Of course every leader has his own personality and style, but when you wave the banner of Change that charmed the people and contributed to the resounding victory you achieved at the polls, the winner has a duty to demonstrate his sincerity and commitment to that very slogan because in a way it encapsulates his contract with the citizens. This is more so for a politician like Buhari who has had three previous attempts at the top job, such that Nigerians were quite eager to see his arsenal of ideas and programmes all these waiting years. Nigerians, not the most patient of citizens, pressed Buhari to “hit the ground running”. Indeed if there was any government that had every need to hit the ground running it was this one that appeared to have been straining at the leash for so long, presumably waiting to be unleashed on Nigerians! The government hit the ground all right, but did not gallop away like a white stallion; rather it thudded onto the floor like Humpty-Dumpty. The first sign of laise affaire was the surprisingly long time it took to announce new ministers. And when the list was eventually sent to the Senate for screening, it was the same old story of prospective ministers without any indication of their prospective portfolios, just as it had been since Shagari’s Second Republic. In an exercise where it was so very easy to demonstrate
Change, the new administration followed the old predictable route. As a result, the Senate screening lacked rigour and due diligence. The questions were specious and perfunctory; it was difficult to ask cognate questions when senators had no idea what portfolio the nominee would get. Thus the administration missed the first and simplest opportunity to demonstrate that there was a new kid on the block with a new ball game; or as Femi Adesina would put it, a new Sheriff in town. In the coming days, there will be ample opportunity for experts and analysts, mad men and specialists to x-ray the first one year of the Buhari administration. So let me turn to something prospective. In my experience, running a new government is like shooting a movie. An unexpected, unscripted occurrence can change the entire merit of the story. Imagine a director is shooting a mundane traffic jam and suddenly a reckless, impatient driver careens out of nowhere and slams into the “go slow” causing a 20-car pile-up! No scriptwriter could have asked for a better divine intervention that in one instant captures the nightmare of a day in traffic jam. The same goes for governments. When John F Kennedy took office in January 1960, he had no inkling that Russia’s Nikita Khrushchev was plotting to test the resolve of the United States with the Cuban missile crisis of October 1962. And when Kennedy responded with an iron resolve that had the world teetering on the precipice of a nuclear holocaust, his reputation
THIS 2008 CARTOON REVEALS WE HAVE ALWAYS KNOWN WHY POLITICIANS PREFER NOT TO KNOW THE SOURCE OF THE MONEY THEY COLLECT UNDER THE TABLE!
as a strong president and leader of the free world was double-decked and triple-locked. But for his cruel assassination the following year, JFK who had been elected in 1959 with a wafer thin majority, would have recorded an almighty landslide. Similarly, when Margaret Thatcher was elected British Prime Minister in 1979, she did not expect that General Galtieri and his military junta in Argentina were going to invade British Falklands. And when they did in April 1982, Thatcher robustly responded by dispatching an armada of the Royal Navy all the way from the UK to recapture the island. This launched her reputation as the Iron Lady who went on to win two more general election. These are only two of many political leaders who turned an unexpected critical challenge into an opportunity to achieve something great and historic. They were confronted by grave and unscripted situations and they turned them to their and their nation’s advantage and became legends in their own lifetime. President Roosevelt did it with the US economy when he faced the Great Depression on assuming office in 1933 with 13 million unemployed Americans. He responded with the New Deal that turned the economy around in short order and he was the only US president to serve more than two terms. For Buhari, therefore, history beckons. With the dismal economic situation that has become his lot, he can turn the rocks on his path into stepping stones to great achievements.
YEAH,...LIKE A POLITICIAN UNDER INVESTIGATION HAS JUST CLAIMED HE WAS NOT AWARE OF THE SOURCE OF THE N400M HE COLLECTED UNDER THE TABLE! 30-05-16
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