Tuesday 5th July 2016 by THISDAY Newspapers Ltd

Skye Bank Shares Nosedive as CBN Sacks Board, Mgt Ahmad, Abiru take over as chairman and MD, Emefiele insists Nigerian banks remain strong Why pleas to Tinubu fell on deaf ears Goddy Egene, Obinna Chima and Nume Ekeghe

In what could be deemed a poorly guarded secret, the Central Bank of Nigeria

(CBN), yesterday, finally announced the removal of the chairman of the board

of Skye Bank Plc, Mr. Tunde Ayeni; other non-executive directors of the board; its

managing director, Mr. Timothy Oguntayo; deputy managing director, Mrs.

Amaka Onwughalu; and two other executive directors of the bank.

Court Declares PDP Convention Valid, Confirms Sheriff's Ouster… Page 42

Expectedly, the shares of Skye Bank Plc fell by 9.5 per cent to lead the Nigerian Stock Exchange’s (NSE) Continued on page 10

Tuesday 5 July, 2016 Vol 21. No 7740. Price: N250

www.thisdaylive.com TR

UT H

& RE A S O

Police Appoint Seven DIGs Dele Ogbodo in Abuja Following the retirement of several Deputy and Assistant Inspectors General of Police last week, the Police Service Commission (PSC) yesterday approved the appointments of seven new Deputy Inspectors General of Police (DIGs) to oversee the seven departments of the Nigeria Police Force. In a statement signed by Mr. Ikechukwu Ani, the commission’s Public Relations Officer, the PSC said the officers’ letters of promotion would be dispatched in due course. The officers and their new designations are: former Assistant Inspector General of Police, Mr. Shuaibu Gambo, Continued on page 10

TRULY THE SERVANT LEADER

R-L: President Muhammadu Buhari serving physically challenged persons – Mr. Sani Moyi, Mrs. Nana Abdullahi and Mr. Umar Adoro – when he broke the Ramadan fast with them, internally displace persons (IDPs), artisans and other Nigerians at the Presidential Villa, Abuja… yesterday godwin omoigui

Will Baru’s Appointment as NNPC GMD Resolve the N’Delta Crisis

Kachikwu now chairman as corporation gets new board Brent oil hits $50 on renewed militant attacks

Tobi Soniyi in Abuja and Ejiofor Alike in Abuja with agency report After months of pressure mounted by northern

interests led by Dr. Maikanti Kacalla Baru, a former Group Executive Director, Exploration and Production of the Nigerian National Petroleum Corporation (NNPC) to be

made the Group Managing Director (GMD) of the state-run oil firm, President Muhammadu Buhari finally succumbed yesterday when he removed Dr. Emmanuel Ibe

Kachikwu as the corporation’s executive head. However, Baru’s appointment has raised questions as to whether he can lead negotiations to calm

restive militants in the Niger Delta, who have renewed hostilities in the oil-rich region in a wave of attacks on oil industry installations. Kachikwu, who for eight

months had doubled as the Minister of State for Petroleum Resources and will now serve as the Chairman Continued on page 10

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY, JUly 5, 2016 • T H I S D AY

PAGE TEN SKYE BANK SHARES NOSEDIVE AS CBN SACKS BOARD, MGT price losers’ chart, as investors reacted to the removal of bank’s board and some members of its executive management team. Skye Bank shares fell from N1.00 to close at N0.95 per share. The bank’s shares had suffered a 36 per cent value erosion year-to-date, falling by N1.50 to N0.95 per share and underperforming the NSE All-Share Index which has appreciated 1.26 per cent YTD. As its shares plunged yesterday, they had an overall impact on the banking segment of the NSE as the Banking Index fell by 1.1 per cent. The sector came under pressure following reports of the impending board changes. In all, nine banking stocks ended the day on a bearish note: Other than Skye Bank, FBN Holdings Plc also shed 5.1 per cent, while Fidelity Bank Plc and Stanbic IBTC Bank Plc went down by 4.6 per cent and 4.4 per cent, respectively. Other losers included Diamond Bank Plc (3.4 per cent), Zenith Bank Plc (3.1 per cent), Access Bank Plc (1.3 per cent), FCMB Group Plc (0.6 per cent) and Guaranty Trust Bank Plc (0.2 per cent). For several months, the market had been concerned about the soundness of Skye Bank in the face of insider lender and a growing nonperforming loan (NPL) book, which had eroded its capital and liquidity ratios. Alarm bells also went off when the bank issued a profit warning in the first quarter of 2016 and still failed to release its full year 2015 results before the

end of second quarter of 2016. By last week, market analysts had confirmed to THISDAY that the bank’s board and executive management were going to be shown the exit after Skye Bank made repeated forays to the central bank’s discount window (lending window) opened penultimate week when the central bank sucked out N1.3 trillion from the banking system through the Secondary Market Intervention Sales (SMIS) inthe interbank forex market. Confirming their removal of most members of the board of Skye Bank yesterday,the central bank said the chairman, all non-executive directors, as well as the managing director, deputy managing director, and the two longest-serving executive directors on the executive management team had been sacked. In anticipation of their removal Ayeni and Oguntayo tendered their resignation yesterday morning. In the place of the chairman, Alhaji M. K. Ahmad was appointed the new chairman of the board while Mr. Adetokunbo Abiru was appointed the new managing director of Skye Bank by the CBN. Addressing journalists in Lagos yesterday, CBN Governor, Mr. Godwin Emefiele, said the central bank took what he described as a proactive step in order to save the health of the bank from further deteriorating. To correct the anomalies in the bank, he said the CBN had several meetings with the management and board of Skye Bank as part of its strategy of

close engagement whenever a bank’s financial or governance situation poses potential threats to the overall stability of the financial system. Emefiele said despite the expectation of the relevant regulators, market watchers, financial analysts and interested stakeholders, Skye Bank should have been doing much better, but what was evident was the opposite. Given the aforementioned issues and the fact that Skye Bank is a domestic Systematically Important Bank (SIB) with significant interconnectedness, he said the CBN would be failing in its duty if it did not take immediate action to nip the steadily declining health of the bank in the bud and correct the situation. Emefiele said in view of the long grace period allowed the bank to correct the situation, the central bank came to the conclusion that, although the existing board had done its best to steer the ship, it was clear that it would be unable to bring the bank out of its present precarious situation. “Fortunately, and in the overall interest of the bank, the chairman and some board members have decided to resign their appointments from the bank. “Consequently, by virtue of the powers vested in the Governor of the CBN, we have decided to reconstitute the board and management of the bank, and appoint new members with the sole responsibility of ensuring the

speedy restoration of the health of the bank. “To this effect, the chairman of the board, all other non-executive directors, the independent director, the managing director, the deputy managing director, and two longest serving executive directors have voluntarily resigned their appointments with immediate effect. “In their place, we have selected industry experts and people of high integrity whom we believe can turn the bank around. “In this regard, we have selected Alhaji M.K. Ahmad to be the new chairman while Mr. Adetokunbo Abiru would be the new managing director. The more recent executive directors will be allowed to remain to ensure continuity and a smooth transition,” he explained. Ahmad is a seasoned public sector executive with over 35 years experience spanning the public sector and the financial services industry. He served as the pioneer Director General and Chief Executive Officer of the National Pension Commission (PenCom). He was also a pioneer staff of the Nigeria Deposit Insurance Company (NDIC) where he rose to become a director. He has also served on the board of various companies and committees including banks and not-for-profit organisations. Abiru is a seasoned accountant and banker and was until recently an executive director in First Bank of Nigeria Limited. He was also the Lagos

WILL BARU’S APPOINTMENT AS NNPC GMD RESOLVE THE N’DELTA CRISIS of the NNPC board, had led

a federal government team last month to negotiate a peace deal with the militants. However, his removal at a most sensitive time, could raise concerns among stakeholders in the region that the administration has remained adamantly unresponsive to the accusations by the militants that some of the local oil firms exploiting the hydrocarbon resources in their backyards and polluting the environment belong to nonindigenes of the oil producing communities. Their fears may be further heightened by the composition of the nine-man board announced by the presidency yesterday comprising six members of northern extraction and one person each to represent the South-west, South-east and South-south geopolitical zones. A statement yesterday by the presidency said Buhari had approved the composition of the board of NNPC, as provided under Section 1(2) of the NNPC Act of 1997, as amended. It said the new board is composed of the following: Chairman – Dr. Emmanuel Ibe Kachikwu, Minister of State for Petroleum; Group Managing Director – Dr. Maikanti Kacalla Baru; Permanent Secretary of the Federal Ministry of Finance, Alhaji Mahmoud Isa Dutse; the Chief of Staff to the President, Mallam Abba Kyari; a former Group Managing Director of NNPC, Dr. Thomas M.A John; a former Executive Director of Mobil Oil Plc and foremost industrialist and boardroom guru, Dr. Pius O. Akinyelure;

a former Chairman/CEO of the Nigeria-Sao Tome & Principe Joint Development Authority (JDA), Dr. Tajuddeen Umar; Mallam Mohammed Lawal; and Mallam Yusuf Lawal. A statement by the president’s media aide, Mr. Femi Adesina, said Buhari urged the new board to ensure the successful delivery of the mandate of NNPC and serve the nation by upholding the public trust placed on it in “managing this critical national asset”. Baru, from Bauchi State, was born in 1959 and had served as a director with NNPC subsidiary Carlson before being appointed the Group General Manager (GGM) of the National Petroleum Investment Management Services (NAPIMS). He was appointed GED, E&P in August last year, but was removed during the restructuring of NNPC into new business units. He holds a Bachelor of Engineering degree from the Ahmadu Bello University (ABU), Zaria, and a PhD in Mechanical Engineering. Since Kachikwu’s appointment as the Minister of State for Petroleum, following the agreement the latter had reached with Buhari when he appointed him GMD of the corporation last year, Baru had never hidden his desire to replace Kachikwu as the head of NNPC. Industry sources had informed THISDAY early this year that Baru had made several overtures to the presidency seeking Kachikwu’s removal. A few months ago, reports went viral on the social media on Kachikwu’s ouster and Baru as

his replacement, but they turned out to be false. In another development, Brent crude traded near $50 a barrel as Nigerian militants – the Niger Delta Avengers – carried out further attacks on oil production sites, threatening to deepen the country’s biggest output losses in decades. According to Bloomberg, September futures rose as much as 0.8 per cent in London after advancing 1.3 per cent Friday. The Niger Delta Avengers said they attacked five crude-pumping facilities overnight Sunday, after two people were killed on June 29 when gunmen opened fire on a boat of Eni SpA workers in the Niger River delta. “You end up with a rather bullish cocktail” when global supply losses are combined, Tamas Varga, an oil analyst at PVM Oil Associates Ltd. in London, said in a report. “Regular pipeline bombings, production shut-ins and force majeure” have curbed Nigeria's output, he said. Brent has recovered more than 80 per cent from a 12-year low in January amid supply disruptions and falling US output. Pledges from central banks halted a rout in global markets following the UK decision to leave the European Union, and both the International Energy Agency (IEA) and OPEC forecast that supply and demand are returning to balance. Brent for September settlement gained as much as 40 cents to $50.75 a barrel on the Londonbased ICE Futures Europe exchange and traded at $50.40 as of 2.49 p.m. local time yesterday.

The contract advanced 64 cents to $50.35 a barrel on Friday. The global benchmark crude traded at a 69-cent premium to West Texas Intermediate (WTI). WTI for August delivery climbed as much as 36 cents, or 0.7 per cent, to $49.35 a barrel on the New York Mercantile Exchange. Prices added 1.4 per cent to settle at $48.99 on Friday. Total volume traded yesterday — Independence Day in the US — was about 69 per cent below the 100-day average. The targets of the Niger Delta Avengers included Chevron Corporation’s oil wells 7 and 8 and three trunk lines belonging to NNPC, according to tweets from an account that said it represents the militants. Attacks this year had helped to cut Nigeria’s monthly oil output to about 1.4 million barrels a day in May, the lowest in almost three decades, according to the IEA. Italy’s Eni said Saturday that two bodies were recovered two days after the June 29 assault. No group has claimed responsibility for the attack, said Desmond Agu, the local commandant of the Civil Defence Force. Shale drillers in the US have brought back the most oil rigs of any week this year amid expectations of a stabilising market. Rigs targeting crude rose by 11 to 341, Baker Hughes Inc. said on its website Friday, marking the fourth time in the past five weeks that producers have deployed more rigs. Explorers in the Permian Basin of West Texas, the nation’s busiest oil patch, led the increase.

State Commissioner of Finance from 2011 to 2013. Abiru is a fellow of the Institute of Chartered Accountants of Nigeria. Continuing, the CBN governor pointed out that the medium-term vision of the CBN, which was unveiled in June 2014, indicated that the central bank would proactively manage potential threats to financial system stability, maintain zero tolerance to practices that undermine the health of financial institutions, and create a strong governance regime that is conducive for financial intermediation, innovative finance and inclusiveness. He said it was in furtherance of these commitments that the CBN made the changes, just as he assured the incoming board and management of the CBN’s unflinching support during this transition period. “It is important to reiterate the fact that Skye Bank is not in distress and remains a healthy bank in the system. The CBN hereby assures depositors, shareholders and all relevant stakeholders that there is no reason for concern or panic as we seek their continued cooperation at this time. “It is our expectation that the shareholders and remaining executive directors will work seamlessly with the new team to ensure that the fortunes of the bank are restored in the shortest possible time,” he said. Responding to questions from journalists, Emefiele emphasised that “the three most important issues in every bank are its NPLs, its capital adequacy and liquidity ratios”. “What we have seen since late 2013 to 2014 is that the capital adequacy ratio at this bank (Skye), has been weakening and we thought it is not right for us to allow this to continue to weaken to the point where it gets to an irrecoverable situation. “It has nothing to do with being distressed and it is important that we take it that we do not want the ratios of this bank to get worse to a point were depositors funds

are at risk. “The board has come to the realisation that it has tried its best and that it is about time for them to bow out, so that a new team can come in and run the bank to improve the position of the bank,” he said. He further stated that strategic health of the banking industry remains strong, adding that when there is need to inform the general public about the strategic health of any bank, the central bank would not fail in its responsibility as a regulator. “No doubt, as a result of global shocks, there is a weakening of certain ratios, but those ratios have not weakened to a point where we would say the banking industry is distressed. “We would like to appeal to all depositors to be calm. There is no need to leave the impression that any bank is distressed. No deposit is at risk. “The CBN conducts its stresstesting of banks. We do not wait to be called to begin to talk about stress-testing a bank. Stress-testing is a process that is on-going in CBN,” he added. Also reacting to news report (not THISDAY), that the central bank had been interfering with the floating exchange rate regime, Emefiele said: “It is not true that central bank has been involved in interfering in the exchange rate regime. “It is a flexible exchange rate regime. Prices are determined based on the market forces of demand and supply but it is important to emphasise that CBN remains a player in that market. “Indeed, till now, CBN is a major player and we began to see that other players were beginning to return and some of the returns and reports we are reading in newspapers on the bids and sale of the banks, you have seen that there are other autonomous sources that are coming in. “However, we want a situation where overtime, the CBN would step back and more autonomous sources for Continued on page 12

POLICE APPOINT SEVEN DIGS now DIG, Department of Finance and Administration; Commissioner of Police (CP), Mr. Joshak Habila, now DIG, Department of Operations; and former Commissioner of Police (CP), Mr. Maigari Abbati Dikko, now DIG, Department of Logistics and Supply. Others include the Commissioner of Police H. M. Dagala - DIG, Department of FCIID; Emmanuel T. Inyang DIG, Department of Training and Development; Ntom Chukwu, DIG, Department of Research and Planning, Folusho A. Adebanjo – DIG, Department of ICT; and Abdul Bube - AIG Force Secretary. The statement added that the appointments had been conveyed to the Inspector General of Police (IG), Mr. Ibrahim Idris, for implementation. A source said the seven DIGs were selected by the presidency and conveyed to

the PSC for announcement. This is a departure from the past when the PSC, as stipulated by its establishment Act, nominated AIGs and DIGs and sent their names for approval by the president.

TOP GAINERS NGN NGN OANDO 0.68 7.37 VANLEER 0.46 9.69 REDSTAR 0.21 4.51 CONTINENTAL 0.05 1.15 DNMEYER 0.04 0.94 TOP LOSERS NGN NGN SKYEBANK 0.10 0.95 HONEYWELL 0.10 1.51 GUINNESS 5.47 99.50 FBNHOLDINGS 0.20 3.70 FORTEOIL 180.83 9.51 HPE Nestle Nig Plc ₦850.00 Volume: 142.836 million shares Value: N1.349 billion Deals: 3,321 As at yesterday 4/07/16 See details on Page 39

% 10.2 4.9 4.8 4.5 4.4 % 9.5 6.2 5.2 5.1 5.0

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY, JUly 5, 2016 • T H I S D AY

PAGE TWELVE

Troops Gun down Female Suicide Bombers in Borno

Senator Iroegbu in Abuja Three female suicide bombers were shot yesterday in Monguno town, Borno State, when they were getting ready to attack internally displaced persons (IDPs), the Nigerian Army has said. According to a statement by the army spokesman, Col. Sani Usman, the bombers were targeting some IDPs who were fetching water at a borehole along Marte road, on the outskirts of the town. “Today (yesterday) at about 6.15 am, three female Boko Haram terrorists suicide bombers attempted to attack innocent Internally Displaced Persons (IDPs) fetching water at a borehole located about 3 kilometres on the outskirts of Monguno town along Marte Road,” the army said. “Our vigilant troops detected and gunned them down, killing two instantly. Unfortunately, the explosive they were strapped with

exploded and injured two civilians nearby,” it said. Usman said the injured persons were evacuated and receiving medical attention at the 8 Task Force Division’s medical facility, while the third suicide bomber, who followed a different route, detonated at some distance before troops deployment along the same road at about 7.10 am. “Troops have cordoned off the general area and imposed a restriction of movement into Monguno while they make the area safe,” he added. Usman also added that troops of the 118 Task Force Battalion, 8 Task Force Division sprang a surprised ambush on some elements of Boko Haram terrorists along Gerere junction in Kukawa Local Government Area of Borno State early yesterday morning. “The Boko Haram terrorists were suspected to be fleeing from the advancing troops of 119 Task Force Battalion presently mopping the

general area of Kangarwa in Kukawa Local Government Area. “During the operation, the troops killed four Boko Haram terrorists carrying logistics items. The troops recovered 48 jerry cans containing 1,440 litres of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel), eight motorcycles, out of which two were destroyed, 21 rounds of 7.62mm (special) ammunition, two AK-47 rifles, an unprimed improvised explosive device and a 36 Henagar hand grenade, as well as assorted drugs,” the army spokesman said. He added, however, that one of the military vehicles and communications equipment were badly damaged during the gun battle with the terrorists. “The troops have continued to intensify vigilance and high level of alertness following concerted efforts of clearing the remnants of the terrorists,” he said.

Chief of Army Staff, Lt. Gen. Tukur Buratai

UAE Tells Citizens to Avoid National Dress Abroad after Man is Held in the US The United Arab Emirates (UAE) has advised its men to avoid wearing the white robes, headscarf and headband of the national dress when travelling

abroad, after a businessman visiting the United States was wrestled to the ground and held as an Islamic State suspect. UAE media reported

that the Emirati man was detained in Avon, Ohio, last week after a female clerk at a local hotel called 911 to report what she had described as a man affiliated

to Islamic State, according to the Arabic-language al-Bayan newspaper. It only identified him by his initials. The English language version of The National

said the receptionist at the Fairfield Inn hotel called the police after she heard the man talking on his phone in the hotel lobby. Gulf News, another UAE

newspaper, published photos of the Emirati man in white robes being wrestled to the ground and handcuffed before being led away by the police.

Petroleum Corporation (NNPC). In addition to the insider lending, Skye Bank is also believed to be heavily exposed to the oil and gas sector, having lent heavily to Atlantic Energy Drilling Concepts. Despite the CBN’s intervention at Skye Bank, it was not all bad news for Nigerian banks yesterday, as ten Nigerian lenders comprising Zenith Bank Plc, Guaranty Trust Bank Plc, Access Bank Plc, First Bank Nigeria Limited, United Bank for Africa (UBA) Plc, Diamond Bank Plc, Fidelity Bank Plc and Ecobank Transnational Incorporated (ETI) made the list of the top 1,000 leading banks in the world. According to the 2016 ranking by the Banker, a publication of Financial Times of London, based on the banks’ shareholders’ fund, Zenith Bank topped list of banks from Nigeria, was the seventh in Africa and 325th in the world with $2.837 billion shareholders’ funds. The bank was closely followed by FirstBank, which was ranked the second top bank

in Nigeria with a shareholders’ fund of $2.036 billion, FirstBank came in 11th in Africa and 417th in the global ranking. In third place was GTBank with a shareholders’ fund of $1.673 billion, but was ranked the 13th top bank in Africa and 490th in the world. Also, Access Bank ranked 4th in Nigeria with a shareholders’ fund of $1.536 billion, 14th in Africa and 522nd in the global ranking. UBA was placed fifth position in Nigeria with a shareholders’ fund of $1.004 billion, 18th in Africa and 670th in the global 1,000 top banks. Diamond Bank was sixth with a shareholders’ fund of $912 million, 20th in Africa and 711th in the world, while Fidelity Bank was ranked the 25th banks in Africa and 802nd bank the world. According to report by the Banker, Chinese banks continued to dominate the global ranking of Top 1,000 banks, but also showed signs of slowing down. The Industrial and Commercial Bank of China (ICBC) remained number one

and China Construction Bank number two. US banks did well in the ranking with JP Morgan holding onto the third position, Bank of America, sixth, Citigroup, seventh, and Wells Fargo eight. “For Africa’s other major banking market, Nigeria, it was a similar story. In 2015, 13 lenders from the country were featured in the global ranking. In 2016 this has fallen to 10, with only two banks, Access Bank and Ecobank Nigeria, registering gains to their Tier-1 capital positions. “This reflects the difficulties faced by the continent’s second biggest oil producer over the review period, as low oil prices began to take their toll. Togo’s Ecobank Transnational has retained its global ranking of 306th and has moved up the regional table one place to sixth. “Beyond these larger markets, some of African lenders have performed relatively well in the 2016 rankings. Building on their success in previous years, all three entries from Kenya recorded positive Tier-1 capital growth,” the report added.

SKYE BANK SHARES NOSEDIVE AS CBN SACKS BOARD, MGT generating foreign exchange would come into the market so that we can conserve our reserves. “At this time, it is not true that CBN is interfering in price determination mechanism, but we are a stakeholder and we are still a major player and we would like to see a situation where we can gradually withdraw from the market and more and more new people can come into the market and take over the determination of our pricing of foreign exchange in Nigeria,” he said. Despite Emefiele’s attempts to explain away the problems of Skye Bank, THISDAY can authoritatively report that the early warning signs that all was not well with the bank were evident last year. However, its board led by Ayeni tried in the last few months to no avail to use political means to plug the hole in its book instead of recapitalising the bank. Sources informed THISDAY that Ayeni and Oguntayo, in a bid to stop their ouster, turned to the former Lagos State governor and a leader of the All

Progressives Congress (APC), Mr. Bola Tinubu, to come to the bank’s rescue by prevailing on the CBN governor to give the board more time to turn around the bank. However, Tinubu was reportedly to have turned down their request on the grounds that the Lagos State Government was not happy with the way the shares of Ibile Holdings Limited, the investment arm of the Lagos State Government in the defunct Eko International Bank (EIB) Limited, which was to consolidate with the defunct Prudent Bank Plc, Bond Bank Limited, Reliance Bank Limited and Co-operative Bank Plc between 2005 and 2006 to form Skye Bank, were whittled down. EIB, THISDAY gathered, had the largest balance sheet of the five banks that merged between 2005 and 2006 to become Skye Bank, but owing to the absence of diligence on the part of Ibile Holdings, the former managing director of Prudent Bank and later Skye Bank, Mr. Akinsola Akinfemiwa, was able to relegate the significance of the bank established by the

Lagos State Government to the background. Even after Akinfemiwa was forced to resign in 2010 when the CBN enforced the 10-year tenure limit for bank CEOs, his predecessor, Mr. Kehinde Durosimi-Etti who had emerged from the legacy EIB was only allowed to remain in the saddle for four years before stepping down for Oguntayo. THISDAY gathered that Ayeni who had by 2014 bought up considerable shares in Skye Bank and fought his way to emerge as its chairman, preferred a more malleable CEO to run the bank. As members of the board, Ayeni and other directors borrowed heavily from the bank with most of the loans going bad. A source from the bank confirmed that Ayeni’s indebtedness to the bank stands at over N30 billion while another non-executive director, Mr. Festus Fadeyi, owes Skye Bank about N98 billion. Fadeyi is the chairman and managing director of Pan Ocean Oil Corporation, a joint venture partner of the Nigerian National

T H I S D AY TUESDAY JULY 5, 2016

T H I S D AY • MONDAY, JULY 5, 2016

COMMENT

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

BEFORE POST-UTME IS BURIED

Universities have the right to admit students who meet certain criteria, argues Sunday Saanu

he Minister of Education, Adamu Adamu, recently stirred the hornet’s nest when he announced the cancellation of post-Unified Tertiary Ma triculation Examination (UTME) in all the universities, saying the only legally recognised body to conduct university admission examination was the Joint Admissions and Matriculation Board (JAMB). The minister also cited the way some universities had turned the post-UTME to money-making venture as part of the reasons for his position. Malam Adamu’s directive which was initially seen as a mere kite flying, for it carried the element of de ja vu, was later reinforced with a threat by him, saying he would deal with any university which flouts the order. Since then, the issue of post-UTME has become a subject of heated hullaballo, thus polarising the stakeholders into either supporters or opponents. As a worker in the industry, this writer feels it is not quite right to be quiet in this contentious matter. Let me humbly disagree with the minister that post-UTME constitutes additional burden to candidates and drains the parents financially, thereby necessitating the need to scrap it. I respectfully disagree sir. These are for too insignificant demerits of post-UTME, compared to the valuable academic improvements the exercise has brought to bear on the system. Post-UTME has transparently reconstructed admission template to the extent that the children of the poor who passed the quality-control test needed no assistance from anybody before being admitted. For instance, in the University of Ibadan, once a candidate’s score was up to the cut-off mark of his or her department of choice, such a candidate got admitted automatically. Such a successful candidate required no note from any quarter before being admitted. This is the reason no one has ever complained about admission fraud in the last 10 years. No candidate has ever alleged that he was short-changed because the process was, and still is, very transparent. Every candidate was made to understand all the stages leading to the final step of admission. More importantly, since 2003 when the post-UTME was introduced in UI, the rate at which matriculated students were withdrawn from the university as a result of poor academic performance after the first year, has gone down drastically. Conversely, the university has turned out more first class graduates than before the advent of post-UTME. This was because those who were admitted were the best as they went through meticulous and tough process. Again, when last has anyone heard of cultism in UI? Almost all the students who came in through post-UTME had no time for frivolities and cultism. They were and still are serious-minded scholars because they were rigorously screened before being admitted. Now, the minister, with due respect, has triggered trouble in the system by insisting that the quality assurance mechanism that has brought sanity into our academic matrix must die. However, if the minister insists that this rigorous, quality-control measure should be buried, let it be on record that he has deliberately placed higher education in the country on a gymnastic manoeuvring. The minister has brought again the dreaded monster called policy summersault. Nigeria today wallows in the straits of horrendous backwardness as a result of consistent policy summersaults. We have become so much inured to policy inconsistency that we don’t even know what to retain and what to discard! In more ways than we will like to admit, this attempt to cancel postUTME is deleterious to our educational development. Without sarcastic

IF THE CANCELLATION WAS NOT MEANT TO ACHIEVE ULTERIOR MOTIVE, WHY IS THE MINISTER INSISTING THAT THE UNIVERSITIES SHOULD NOT HAVE A SAY IN THE QUALITY OF THE CANDIDATES THEY ARE GOING TO TRAIN?

hyperbole, the scrapping ministers nothing but strife, and achieves nothing but distraction. The cancellation seems to be motivated by some subterranean interests. We must therefore not yield to this visceral policy! If the cancellation was not meant to achieve ulterior motive, why is the minister insisting that the universities should not have a say in the quality of the candidates they are going to train? As Luke Onyekayeyah noted in his column, “there is no country in the world where all universities have the same standard. Otherwise, we would not have the Ivy-league institutions that are world acclaimed. Setting the same cut – off mark for University of Lagos for instance and the newly established private polytechnic in one village is senseless”. Indeed, this current attempt to bury post -UTME is a major infraction on the universities’ autonomy. This is where Academic Staff Union of Universities (ASUU) and the Committee of Vice Chancellors of Nigerian Universities should take up the gauntlet. Post-UTME represents integrity check in our academic process. And, no serious nation plays game with the demand of integrity. Certainly, the plan to cancel post-UTME is an attempt to substitute placebo for an effective therapy. It is like taking a deadly plunge for the worst. A few guesses may be useful here, once the only requirement to gain admission is to pass JAMB examination by scoring 180, then, lists from influential people and groups would begin to fly from Abuja to all the federal universities that these students must be admitted to study Medicine, Law and other prestigious courses. The children of the poor who have nobody in Abuja are excluded from the game because they are not connected. Last year, the cut-off mark to study medicine in UI was 74 in UI conducted post UTME. I know many brilliant children of the farmers who passed and got admitted. Yet, I know children of the governors and ministers who could not get in because they failed the transparent post-UTME. This is probably what this coming cancellation is coming to correct. Therefore, the planned cancellation of post UTME is not only a trivialisation of a process which was designed to be rigorous and methodical in order to get the best, but also a coup against the children of the poor. The minister created an impression that he was protecting JAMB which was legally set up to distribute candidates to various universities. Again, with due respect, I beg to disagree! JAMB was created in 1978 when Nigeria had only 13 federal universities. The vision was to ensure that no candidate secured more than one admission slot. But today, there are 40 federal universities, 41 state universities and 61 private universities totalling 142. Technically, JAMB has outlived its usefulness and relevance. By the way, is it not the same JAMB which caused national uproar last year when it started distributing candidates to private universities the candidates never applied to? JAMB has lost its verve, relevance and seriousness over the years. The board has probably been assailed by the pervasive social putrefaction so much so that its examination results lack credibility. The post – UTME funeral should be delayed for some introspection to take place. It is obvious that the scrapping is redolent of politicisation of the nation’s educational policy to favour a particular section of the country. In the light of loftier arguments, the minister is expected to have a second thought. Saanu wrote from the University of Ibadan

POLICE WELFARE AND NATIONAL SECURITY

t no time is having an efficient Nigerian Police Force more critical than under a government which, like that of President Muhammadu Buhari, has chosen security as one of its top priorities. At no time may seeking ways of making the force more efficient more pertinent than after the appointment of a new acting Inspector General of Police, such as Ibrahim Idris, who awaits confirmation as Inspector General of Police. For such a new helmsman would likely be open to new ideas for improving the performance of the force. And though the Buhari government may have prioritised security in response to the terrorist threat posed by Boko Haram, it is clear that keeping a nation secure involves far more than dispensing with such threats. Terrorism is only one of the causes of insecurity known to man. At a more fundamental level, ensuring security entails fighting crime – including such that may be perpetrated by terrorist groups, like murder and kidnapping – which directly violates the security of its victims. Also, fighting crime – related as it is to maintaining law and order, which the police are basically charged with – is a multi-faceted activity. It can take the pre-emptive form of crime prevention. It can take the form of combating violent criminals while actively engaged in armed robbery, for instance. It can take the form of investigating crime and prosecuting the culprits. Each of these situations may involve a security threat to individuals and groups in society, but more so the activities of violent criminals of all sorts. It cannot be gainsaid that the Nigerian police can play a critical role in all such situations

Ikeogu Oke argues that the police should be well provided for

in relation to the country. There is also a general consensus that they need to be far better equipped and motivated than they currently are in order to play that role effectively. A very important component of motivating them better is improving the welfare of police personnel so as to eliminate or reduce the temptation of those unethical practices, such as extorting money from commuters at checkpoints, which compound their inefficiency and give them a bad image. A friend once told me a story that illustrates this. He said two policemen were posted to guard a fenced yard belonging to the company where he worked. The yard served as a storage facility for sundry scrap items and spare parts. Not long after the guards assumed duty it was noticed that some of the items in the yard were missing. A report of the missing items was lodged with the company’s head of security who conferred with the head of human resources on the best way to deal with the issue. They resolved that the head of human resources should handle it, a rather unconventional decision since it was essentially a security issue. Afterwards the head of human resources invited the two guards to her office. But rather than interrogate them about the missing items as anyone would have expected, she asked them how much they were paid as salary. Following their reply she asked them how much they were paid as allowance by the company. She asked them to leave after they responded to the second question. At the next management meeting, she recommended a monthly allowance for both guards, which doubled what they had been receiving as salary from the police and allowance from the company but was

still a fraction of what their counterparts were paid monthly as staff of the company. Her recommendation was approved. A few days after the guards received the new allowance, all the missing items resurfaced in the yard. Afterwards, no further case of missing items was reported while they kept guard at the facility. What the head of human resources did through her creative and humane intervention was to link improving the guards’ welfare to improving the security of the items under their protection, as we must link the welfare of men and officers of the Nigerian police to improving national security. Even before I heard the story, I disagreed with the notion that the Nigerian police are inherently or irremediably corrupt. But the story helped to justify that disagreement. Rather, I believe that a country gets the type of police force it cultivates. A country cannot have the most poorly paid and inadequately motivated police personnel in the world and expect them to perform as satisfactorily as their counterparts in other countries who are well catered for by their governments. To underpay and underequip the police while charging them with maintaining law and order is to show contempt for law and order. It is to identify indirectly with the enterprise of crime because such frustrating conditions would necessarily impair their capacity to fight crime which they can only do effectively under working conditions that inspire efficiency and patriotism. My recent observations while cooperating with the police in investigating a criminal case as the complainant show that their condition of service leaves much to be desired and needs to be improved

exponentially. And while not making an excuse for corruption, I would insist that most of the corruption attributed to Nigerian police personnel is a reaction to financial insecurity and would not exist under a regime of adequate welfare. So we ought to view the moral inadequacies of our police personnel with humanity, as something forced on some of them by desperate circumstances. Incidentally, the slogan of the Nigerian police – namely, “Police is your friend” – seems to have a bearing to their bad reputation, especially the type that arises from the collusion of some of their personnel with criminals, like the case of George Iyamu, a Deputy Superintendent of Police, and Lawrence Anini, the notorious armed robber, which shocked the nation in the 1980s. It means “Police is your friend” even if you’re a lawbreaker. It should be modified to change this negative impression and discourage those in the force who may see it as a justification for accepting to be collusively befriended by criminals. The police should not be your friend regardless of who you are or what you do. In all, it is apparent that the Nigerian police are confined to trying to achieve so much with so little. Their situation can be compared to being given a cutlass to cut down an iroko tree by a country that can afford a chainsaw. This situation requires that we empathise with them rather than judge them harshly for their failings. It also imposes on us the moral responsibility to campaign for the improvement of their condition of service in our collective interest. A happier police force makes a safer nation. Oke, a public affairs commentator, wrote from Abuja

T H I S D AY • MONDAY, JULY 5, 2016

EDITORIAL TIME FOR PDP TO RESOLVE ITS CRISIS

Whatever happens within the PDP has considerable implications for the larger polity

ith different interpretations being given to the last week’s judgment of an Abuja High Court restraining the individuals “currently parading themselves as the national officers of the PDP on the basis of the purported amendment to the PDP constitution effected at a special convention held in Abuja on December 10 and 11, 2014”, it is clear that the crisis rocking the opposition will be difficult to resolve. But it is in the interest of our democracy that critical stakeholders who still command respect within the party move in so that the Peoples Democratic Party does not self-implode. Interestingly, while the presiding judge of the Abuja High Court did not specifically mention Alhaji Ali Modu Sheriff, the order that those who became PDP national officers by virtue of the 2014 amendment to the party’s constitution, which he declared unlawful and should cease to parade themselves in those capacities was explicit THE PEOPLES enough. To the extent DEMOCRATIC PARTY IS A that Sheriff became CRITICAL STAKEHOLDER chairman by virtue of IN THE CURRENT the 2014 amendment, DEMOCRATIC PROJECT it doesn’t take any expert opinion to know that he has been thrown out. But the former Borno State governor, Sheriff, is still digging in by claiming to be the PDP national chairman, thus leaving the main opposition party in total disarray. It is even more unfortunate that despite the fact that the PDP governors and no fewer than 24 state chairmen of the party have disowned him, Sheriff still parades himself as the party chairman, making pronouncements that can only put the PDP in a quandary, especially as regarding the forthcoming gubernatorial election in Edo State. He is also sending out subtle threats that except the crisis is resolved in his favour, the PDP might not be able to compete at the 2019 general election, lending credence to the

Letters to the Editor

suspicion that he could be an agent of destabilisation serving other interests. As we pointed out in a recent editorial, to the extent that the PDP was in power at the centre in Nigeria from 1999 until last year, it is a critical stakeholder in the current democratic project. Moreover, the party also in that period controlled more than 60 per cent of the National Assembly membership as well as no fewer than 23 of the 36 states of the federation. Given such past domination of the political landscape, we are of the firm belief that whatever happens within the PDP has considerable implications for the larger polity.

U T H I S DAY

EDITOR IJEOMA NWOGWUGWU DEPUTY EDITORS BOLAJI ADEBIYI, JOsEph UshIGIALE MANAGING DIRECTOR ENIOLA BELLO DEPUTY MANAGING DIRECTOR KAYODE KOMOLAfE CHAIRMAN EDITORIAL BOARD OLUsEGUN ADENIYI EDITOR NATION’S CAPITAL IYOBOsA UWUGIAREN

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

EDITOR-IN-CHIEF/CHAIRMAN NDUKA OBAIGBENA GROUP EXECUTIVE DIRECTORS ENIOLA BELLO, KAYODE KOMOLAfE, IsRAEL IWEGBU, EMMANUEL EfENI, IJEOMA NWOGWUGWU GROUP FINANCE DIRECTOR OLUfEMI ABOROWA DIVISIONAL DIRECTORS pETER IWEGBU, fIDELIs ELEMA, MBAYILAN ANDOAKA, ANThONY OGEDENGBE DEPUTY DIVISIONAL DIRECTOR OJOGUN VICTOR DANBOYI SNR. ASSOCIATE DIRECTOR ERIC OJEh ASSOCIATE DIRECTORS hENRY NWAChOKOR, sAhEED ADEYEMO CONTROLLERS ABIMBOLA TAIWO, UChENNA DIBIAGWU, NDUKA MOsERI GENERAL MANAGER pATRICK EIMIUhI GROUP HEAD fEMI TOLUfAshE ART DIRECTOR OChI OGBUAKU II DIRECTOR, PRINTING PRODUCTION ChUKs ONWUDINJO TO SEND EMAIL: first name.surname@thisdaylive.com

nfortunately, for more than five months now, the PDP has been enmeshed in a self-inflicted crisis arising from the virtual overthrow of its constitution by a cult of former and serving governors. That habitual impunity explains the recent emergence of Sheriff, who had barely spent a year in the party as its acting national chairman and the attendant consequences. The problem started when a powerful caucus in the party had, in spite of strong objections from the founders and elders of the PDP, not only imposed Sheriff, but also extended and attempted to perpetuate his tenure in a clear contravention of the zoning and rotation principles enshrined in the party’s constitution. The resultant resistance of party elders led to the debacle in which three clear factions emerged. While the party stakeholders led by the board of trustees tried to narrow the scope of the conflict by getting all members to accept the leadership of the seven-man caretaker committee led by the former Kaduna State Governor, Senator Ahmed Makarfi, a group led by Sheriff has refused to accept a resolution most reasonable people consider the best in the circumstance. And that has made it difficult for all the critical stakeholders within the party to come together so as to evolve a transparent process to elect a new PDP leadership. Sheriff and fellow travellers must be called to order.

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

INEC AND THE POLITICAL CRISIS IN ABIA EFCC AND BENUE HOUSE OF ASSEMBLY

he good people of Abia State and many others were largely taken aback when news filtered in that a Federal High Court sitting in Abuja had sacked Dr. Okezie Ikpeazu, the Governor of Abia State for false declaration of tax. In a landmark judgment that will for generations reverberate in the our country’s history, Justice Okon Abang ruled that Ikpeazu while in public service did not pay his tax for the years 2011, 2012 and 2013, as when due and ordered that the runner up in the primaries that produced Ikpeazu in the person of Dr. Uche Ogar be given a certificate of return. As a social media influencer, I immediately shared the news on my platforms and debated with my fellow ‘avengers’ (pepper soup avengers o!) over drinks and pepper soup on what may be obtained by such a judgment. However, what was to occur the next day beat our analyses. INEC invited Dr Ogah to Abuja the next day and immediately handed over to him a certificate of returns, despite Governor Ikpeazu’s notice of appeal. Thus in one day, Abia State had two governors, one a sitting governor, the other a governor via the back door of constitutional illegality. Talk of a crisis cheaply manufactured! Welcome to Nigeria! This was despite the fact that the governor as a citizen of this country had filed an appeal against the

judgment asking the court to set it aside. As I write, Abia State is sitting on a keg of gunpowder; tension is threatening to create another unwanted crisis simply because some people don’t want to learn from history. Yes, the high court had asked that Ogah be handed the COR, but could INEC not have waited until the matter was concluded at the Supreme Court? Or is a Federal High Court now the final arbiter for legal issues in Nigeria? Truth is that I do not give a hoot on whether Ikpeazu takes the boot or not. If he is indeed guilty of not paying his taxes, then the law must be allowed to take its course. However, as we say, justice mustn’t just be done, it must be seen to be done and the only way justice could have been done in this case is for the Supreme Court to rule on the matter. Anything short of that scoffs at the notion of justice being served. Surprisingly, this is coming from the same INEC that has refused to conduct elections in Anambra Central Senatorial district following a judgment by a similar Federal High Court ordering it to accept a candidate from the Peoples Democratic Party which had initially been barred from presenting a candidate following the disqualification of Senator Uche Ekwunife of the PDP. Igboeli Arinze, Abuja

he visit of the men of the Economic and Financial Crimes Commission (EFCC) to Benue State House of Assembly and the arrest of some of the members for alleged embezzlement of the public funds is a welcome development. I must quickly commend men of the EFCC and urge them to ensure the mandatory collection of the Benue funds from the corrupt and shameless members of the state House of Assembly, who abandoned their responsibilities of making dividends of democracy available to their constituencies and embarked on massive looting of the state, and thus making things difficult for the people. Since the arrival of the so-called change in the state, Benue people have been going through series of problems, ranging from non-payment of the workers’ salaries and allowances to killing of the citizenry by the Fulani herdsmen, assassination of people by unknown gunmen to the snatching of peoples’ cars. Others are: hardship, police harassment, and so on. Despite the fact that amnesty was given for people to submit their arms, there are still massive killings in the state.

When the leadership of any given nation or state lacked focus and competence to handle the people and the affairs of the state, such society must experience what the Benue people are experiencing now and if urgent steps cannot be taken by the knowledgeable people to address the disturbing issues, such a society will collapse. However, it is good that men of the EFCC have come to rescue the state and her people in order to prevent the state from going into extinction. Therefore, there should be transparency and fairness thereby ensuring that the All Progressives Congress members that are involved should be adequately punished like those in the Peoples Democratic Party. Nevertheless, the traditional policy of “Monkey de work and Baboon de chop” must stop. We must do away with the era of politicians buying exorbitant cars, houses and so on at the expense of executing developmental projects for the people. We must collectively say no to selfish policies of our leaders that benefit only the elite in the society. We must boldly and bravely take action against those leaders who get rich through the looting of the society’s treasure. Awunah Pius Terwase, Mpape, Abuja

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

T H I S D AY • TUESDAY, JULY 5, 2016

POLITICS

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

EXECUTIVE BRIEFING

Can the EFCC Investigate States? The recent directive by the Attorney General of the Federation to the Economic and Financial Crimes Commission to investigate the Rivers State Government withdrawal of its funds has again raised the question of whether or not the anti-graft commission has the powers to investigate the states. Davidson Iriekpen writes

he Office Attorney General of the Federation (AGF) and Minister of Justice and the Rivers State Government are at loggerheads over a directive by the former to probe the latter. In the report published by a national newspaper, the AGF, Mr. Abubakar Malami (SAN), was alleged to have directed the Economic and Financial Crimes Commission (EFCC) to investigate the withdrawal of over N11billion from the Rivers State Government’s account with the Central Bank of Nigeria (CBN) by the Director of Finance and Administration of the state’s Government House, one Mr. Kingsley Fubara, between October, 2015 and February, 2016. The anti-graft agency was also directed to probe the transfer of another sum of N1.5billion from the state’s account with the CBN to the Zenith Bank Plc account that belongs to one Mr. Samuel Anya “on or about January 27, 2016.” One question the AGF’s directive has raised is whether the EFCC or any other anti-graft agency can investigate the state government? But beyond that, the directive has confirmed the fears expressed by most Nigerians that the All Progressives Congress (APC)-led federal government is out to totally muzzle the opposition. They cannot understand why the AGF would order the probe of a state government, which chooses to withdraw its money from the bank. While THISDAY gathered that the directive to probe the state government might not be unconnected with the many efforts to discredit it especially with the rerun elections fast approaching, others wondered why the AGF did not order the probe of a former governor of the state for alleged corruption despite the many petitions the state government sent to the appropriate authorities to that effect. They also wondered the silence of the AGF and the anti-graft agencies, when a prominent and vocal minister in the Buhari administration was accused of demanding the sum of N13million from a parastatal under his ministry to cover tickets and travel expenses to China to attend a conference on tourism for development, when he has a budget in his ministry. Also, a few days ago, another minister and his deputy, were alleged to have diverted the sum of N2 billion from the N20 billion recently released to agro-dealers by the federal government. But all the AGF did was to watch the ministers deny the allegations without urging any of the anti-graft agencies to probe the allegations. And the issues were swept under the carpet. But to show that the directive was a witchhunt and an attempt to scandalise it, the state government in a swift reaction, disowned Fubara, saying there was nobody with such name either as a Director of Finance and Administration or in its employ. The state Commissioner for Information and Communications, Dr. Austin Tam-George, who knew where the directive was being orchestrated from, described the report as patently false, saying the state never conducted such financial transactions. “The Rivers State Government has no record of any staff known as Kingsely Fubara. This must be a fictional character created by the All Progressives Congress (APC)) and its coconspirators to embarrass the state government and deceive the public. By law, the Rivers State Government is accountable to the Rivers State House of Assembly and the people of Rivers State, not to the Attorney General of the Federation. This is a totally fictitious report typically orchestrated by the APC and its media allies.

Magu...understanding the powers of the EFCC

“But the story raises fundamental questions about the moral horror of an anti-graft agency that is now openly partisan in all its intentions and actions. There is a universal concern that the EFCC is playing an extremely corrosive role in the current political dispensation. Rather than fight corruption in a professional and dispassionate manner, the EFCC behaves like an integral organ of the APC. An anti-graft commission that targets only the opposition politicians and critics of the failed policies of the APC government is a national embarrassment. “Has the EFCC ever heard of one Mr. Rotimi Amaechi, the former governor of Rivers State and current Minister of Transport? Despite receiving over N1trillion in eight years as governor, Amaechi left the most abandoned projects in the history of Rivers State, since 1967. Several petitions against Amaechi, supported by sworn affidavits, have all been summarily ignored by the EFCC. “Even chieftains of the APC have publicly acknowledged Amaechi’s stupendous financial contributions to the party’s presidential campaign in 2015. These financial contributions, estimated at billions of naira, constitute serious financial crime against the people of Rivers State. The government and people of Rivers State will resist any politically-motivated targeting of its leaders by any agency of the federal government, by whatever name it is called.” On his part, the state governor, Nyesom Wike, described the allegations as untrue, unfounded and salacious aimed at both scintillating the reading public and scandalising the state government “by the usual methods of trial on the pages of newspapers devoid of verifiable facts. The wild allegations contained in the said publication would be appropriately addressed and their falsity shown when they are raised by due process of law in the appropriate forum.” In a statement by the state Attorney General and Commissioner for Justice, Emmanuel Aguma (SAN), Wike reminded the AGF and the EFCC of two subsisting judgments of the High Court of Rivers State and the Federal High Court that bar the anti-graft agency from investigating the finances of the state.

The first judgment was at the High Court of Rivers State in suit number PHC/114/2007: Attorney-General of Rivers State vs the Speaker of Rivers State House of Assembly and 36 others. The judgment which was delivered by Justice Peter Agumagu on February 16, 2007, enunciated the following principles of law, which till date has not been set-aside by the EFCC in any appellate court. The principles of law are: By the combined effects of section 125 subsections (2), (5) and (6) of the Constitution of the Federal Republic of Nigeria 1999 (the 1999 Constitution), it is the House of Assembly of a state, Rivers State inclusive, that has the final say on matters pertaining to the funds of the state as laid before it by the Auditor-General’s Audit Report of all public accounts and the Accountant-General’s financial statements and published annual accounts. These powers are exercised independently without the direction, dictation, control or manipulation of any other authority or person. The constitution does not vest on investigating bodies such as the EFCC or the police or law officers like the Attorney-General of the Federation any powers to direct or control the House of Assembly of a state in the performance of its aforementioned function of superintending over the funds of a state. Neither do the AttorneyGeneral of the Federation, the police or the EFCC have any constitutional powers to direct how the Accountant-General or the Auditor General of a state performs their respective functions. “By the combined provisions of sections 128 and 129 of the 1999 Constitution, it is the House of Assembly of a state that is vested with the power to superintend or police all funds of the state and ‘to expose corruption and waste in the management of public and consolidated revenue funds of a state.’ The powers of the House of Assembly contained in section 128 of the 1999 Constitution are exclusively reserved for them. “The federal government or any of its agencies does not share this power with the House of Assembly. Neither the police, nor the EFCC is constitutionally empowered to share power with the House of Assembly. It will amount to an unconstitutional act for the EFCC or the ICPC to usurp this power of the House of Assembly. The

But the story raises fundamental questions about the moral horror of an anti-graft agency that is now openly partisan in all its intentions and actions. There is a universal concern that the EFCC is playing an extremely corrosive role in the current political dispensation. Rather than fight corruption in a professional and dispassionate manner, the EFCC behaves like an integral organ of the APC. An antigraft commission that targets only the opposition politicians and critics of the failed policies of the APC government is a national embarrassment EFCC has no constitutional power and control over public and consolidated revenue funds of Rivers State, and to that extent is not entitled to audit its accounts or tamper with its bank statements and records.” The Federal High Court in line with the tenor of the judgment of the High Court mentioned above made specific injunctive orders in its judgment delivered on the 20th day of March 2007, restraining the EFCC (the 1st defendant in the said suit) from specific acts. The federal court made the following peremptory orders: “(a) An order of injunction restraining the 1st defendant by itself or by its servants or agents or in any manner howsoever from purporting to investigate or inquire into the appropriation, disbursing, administering, or management of the funds of Rivers State is hereby made. “(b) An order of injunction restraining the 1st defendant (EFCC) by itself or by its servants or agents or in any manner howsoever from disseminating, publishing or circulating to any government, government agency, the news media or members of the public or in any manner at all, he (sic) purported or findings in respect of any investigation or inquiry into the appropriation, disbursing, administering or management of the funds of Rivers State or putting the said report or finding to any use whatsoever is hereby made.” Wike argued that on the strength of the decision of Justice Agumagu, the EFCC has no business with how the state spends its finances until the state assembly performs its duties and invites the anti-graft agency to investigate a crime pursuant to sections 6 and 7 of the EFCC No.1 of 2004. He contended that the judgment delivered over nine CONTINUED ON PAGE 19

T H I S D AY • TUESDAY, JULY 5, 2016

ONTHEWATCH

NewSecurityInitiativeandtheRisingMilitancy From Pulo Shield to Delta Safe, can the new security initiative in the Niger Delta effectively contain the rising militancy, asks Emmanuel Addeh

ith Operation Pulo Shield in the Niger Delta now finally rested and the birth of Operation Delta Safe, Nigerians expect to see some progress in the war against criminalities in the region, ala vandalism, oil theft, illegal crude oil refining, kidnapping, sea robbery and all other forms of militancy. But if antecedents are anything to go by, those who believe that nothing much has changed except a modification in nomenclature, given that the structure and personnel basically remain unchanged may have a point after all. Before the scrapping of the Operation Pulo Shield penultimate week, there was Operation Restore Hope, which became operational in the heat of militancy in the oil-rich region. While scrapping the former outfit and renaming it Operation Delta Safe, the Defence Headquarters noted that the initiative was to restructure the Joint Task Force for better service delivery, efficiency and effectiveness. It noted that the decision was in line with the vision and mission of the Chief of Defence Staff to contain the current security challenges in the Niger Delta, especially protection of critical national assets and provision of security in the area. The military added that the change had become necessary “in order to inject new tactics and robust operational initiative to tackle the emerging security challenges in the Niger Delta region such as piracy, bunkering, vandalism and other criminalities prevalent in the area”. Interestingly, in January 2012, the military told the Nigerian public that Operation Restore Hope, as it was then called, was disbanded and replaced by Operation Pulo Shield to boost surveillance in Niger Delta. Yet, a few years down the line, several militant groups, Niger Delta Avengers (2016-present), Red Egbesu Water Lions (2016-present), and Joint Niger Delta Liberation Force (2016-present), still pose serious threat to Nigeria’s economic survival.And before them were the Movement for the Emancipation of the Niger Delta (2004-2014), Niger Delta People’s Volunteer Force (2003-2009), Niger Delta Liberation Front (2005-2014) the Joint Revolutionary Council (2004-2014) and the Niger Delta Vigilante (2004-2009). The NDA, one of the deadliest in recent times, has also attacked oil producing facilities in the Delta, causing the shutdown of oil terminals and a fall in Nigeria’s oil production to its lowest level in twenty years at a point. The attacks caused Nigeria to fall behind Angola as Africa’s largest oil producer, reduced oil output and hampered the Nigerian economy. But as they say, history has a way of repeating itself. Despite what was seen as the efforts of the JTF at the time, it took late President Umar Yar’Adua’s amnesty programme to halt the rampaging militants. Just a few years later, the government is again discussing discreetly with ex-militants with a view to stopping the bombings and meeting their demands, despite the evolution of the military outfit. Incidentally, the current Chief of Army Staff, who was then the Commander of 2 Brigade, Port Harcourt, Brig.Gen. Yusuf Buratai, as he then was, was upbeat when the defunct Operation Pulo Shield was born four years ago. He had told journalists that the operation was aimed

New JTF Commander, Okojie with Governor Dickson, when the commander paid the governor a courtesy call

at “taking the fight against pipeline vandalism, bunkering, illegal refining, kidnapping and piracy to greater heights. “The JTF’s task of ‘Restore Hope’ has been virtually completed. We now have a new challenge to fight such crimes like oil bunkering, pipeline vandalism, and you know the oil sector plays a very vital role in our economy. We will not allow it to be destroyed,” he added. Yet, it remains debatable whether that objective had been met by the transmutation of ORS to OPS and now ODS. However, it would seem that the deployment of the first naval commander to head the security outfit headquartered in Bayelsa, in the person of Rear Admiral Joseph Osa Okojie, may also be strategic as all former coordinators had emerged from the army. A statement from Defence spokesman, Brigadier General Rabe Abubakar while announcing the change, said until his appointment, Okojie was Flag Officer Commanding Naval Training Command Lagos, noting that his new appointment took effect immediately. But probably aware of some alleged actions of former commanders which were seen as unprofessional, the Bayelsa State Governor, Henry Seriake Dickson has advised the new helmsman to be properly guided by the ethics of the military profession. He cautioned the new commander to be professional in addressing security challenges in the region. The governor, who gave the advice when he received the new Commander, also emphasised the need for the law enforcement agents to be neutral in dealing with criminal activities. While commending the federal government for retaining the headquarters of the “Operation Delta Safe” in Bayelsa, Dickson said the operations of the security outfit especially its maritime component had a crucial role to play, as the state is predominantly riverine in nature. He called for non-interference in their activities in the interest of national peace and stability because of the strategic position the Niger Delta occupies in the country. In his response, Okojie said the federal government deemed it necessary to “re-engineer” the security outfit as part of efforts to tackle insecurity effectively in the country. According to Rear Admiral Okojie, the task of achieving enduring peace and stability remains a joint effort involving the governments, community

leaders and other stakeholders of the affected states, particularly in the maritime areas covered by its mandate. The new Commander said the outfit would adopt a holistic approach in maintaining law and order, rather than use brute force. He, however, warned criminal-minded individuals to steer clear of the region as the Operation Delta Safe has acquired adequate resources to deal decisively with those, who are bent on sabotaging the government’s efforts towards promoting economic growth and prosperity. But as Okojie resumes, one of his major tasks, many believe, would be the protection of his men, many of whom have died in the region, some of the deaths totally unwarranted. For instance, on June 1, 2016, a Nigerian Petroleum Development Company (NPDC) Houseboat deployed at Ejere junction in Warri South Local Government Area was attacked by suspected armed militants group. “During the deliberate attack, two soldiers were killed, one wounded, one soldier missing while four civilian staff attached to the houseboat were shot dead. The attack occurred when other members of the troop were on pipeline patrol,” army authorities confirmed. Even the CAS recently lamented the deaths. “They have been attacking our troop’s locations, killing our soldiers. We will not tolerate them. We will deal with them according to the law. We will look for them wherever they are. They (militants) are not agitating for anything, they are just into crime. Communities should be patriotic enough to expose these criminals. They have nothing to fear. “They should help fish out these criminals killing our soldiers. We will not tolerate that. They must come out to help. They have nothing to fear. Everybody, every Nigerian should expose these criminals. They have nothing to fear,” he said. In a similar manner, three soldiers attached to the JTF were killed in an ambush by a gang of unknown gunmen in Foropa, Southern Ijaw Local Government Are (LGA) of Bayelsa State. Same way, three naval officers were drowned by suspected militants in the same Bayelsa and their corpses discovered days after. Aside that, it is widely held that Okojie must police his men and ensure that cases of complicity of some of the officers fighting criminalities

But if antecedents are anything to go by, those who believe that nothing much has changed except a modification in nomenclature, given that the structure and personnel basically remain unchanged may have a point after all. Before the scrapping of the Operation Pulo Shield penultimate week, there was Operation Restore Hope, which became operational in the heat of militancy in the oilrich region

in the region, like in a report sometime ago detailing the complexities of ongoing massive oil theft in Nigeria’s oil rich, do not recur. The report, published by Stakeholder Democracy Network (SDN), after what it said was an extensive research, averred that there was extensive evidence that some corrupt members of the JTF were actively participating and profiting from oil theft and illegal oil refining. According to the report, a “relatively small number” of top ranking JTF officers have criminal ties to the tap point owners, oil theft unions and camps managers – the most profitable part of the chain.” The reports adds that at the top of the oil theft chain, the tapping point, the most lucrative part of the business chain, top ranking JTF officers own shares alongside technicians and couriers. “During the tapping process, the JTF ensures the surrounding waterways are clear so workers can install the tap without disturbance,” the report alleged. SDN also revealed that during its investigation, a kind of ‘protection money’ is paid after which vessels are granted open passage through the transport corridor. But the JTF command in the Niger Delta had dismissed the report, noting that none of his men had been court martialed over oil theft. The killing of innocent persons, especially those who ply the waterways, observers affirm, must also stop. A human rights activist and state representative, Environmental Rights Action (ERA), Mr. Alagoa Morris noted, “One of the worst opponents to contend with is the one, who is very scared of you and lacks confidence. He would not hesitate to kill you with the smallest opportunity. The shooting and killing of innocent, harmless and law-abiding citizens by soldiers in the creeks is no exception.” With his job clearly cut out, all eyes are on Rear Admiral Okojie to at least, minimise all the vices that have set the region and indeed the nation back in the past and curb the excesses of his men. Will he make the difference? Nigerians are watching…

CAN THE EFCC INVESTIGATE STATES? years ago is valid and subsisting and has not been set aside, adding that it was still binding and in force, and that it cannot be overruled by administrative fiat by any official of government no matter how highly placed. In his conclusion, the governor, who is also a lawyer, reminded the AGF of Rule 24 of our Rules of Professional Conduct titled: ‘The Lawyer’s Duty in its Last Analysis,’ which provides: “Lawyers are in duty bound to uphold the law; and no service or advice ought to be

rendered or given by them to clients, corporate or individual, of any description or to any cause whatsoever involving disloyalty to the law or bringing disrespect upon the holder of any judicial office or involving corruption of holders of any public office. Improper service or advice in such circumstances as aforesaid is unethical and merits strong condemnation as unprofessional conduct. “On the other hand, service or advice rendered or given that not only accords with the letter

of the law but also embraces moral principle cannot be too highly commended. He must also observe and advise his client to observe the statute law, save that until a statute has been construed and interpreted by competent adjudication, he is free and is entitled to advise as to its validity and as to what he conscientiously believes to be its just meaning and extent. Above all, a lawyer finds his highest honour in a deserved reputation for fidelity to private trust and to public duty, as an honest man and as a patriotic

and loyal citizen. “It is with utmost respect that in keeping with my capacity and my instruction and direction, that I respectfully urge you sir as the Chief Law Officer of the Federation and custodian of the Constitution of Nigeria which is premised on the rule of law to advise the EFCC on the limits of its powers. The judgments we have respectfully referred you to sir are judgments in rem and are binding on all the parties to the suits including the EFCC.”

TUESDAY, JULY 5, 2016 • T H I S D AY

FEATURES

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

Outstanding Breakthrough in Open Heart Surgery The sudden demise of two Nigerian coaches, Amodu Shuaibu and Stephen Keshi due to heart-related diseases, has raised questions on the need to find immediate solutions to the silent killer. Christopher Isiguzo writes that the University of Nigeria Teaching Hospital, Enugu, has come to the rescue with the successful conduct of 175 open heart surgeries in a space of three years

One of the patients just out of the theatre

or the past three months, we have been moving from one place to another seeking for assistance from friends, relations and public spirited individuals who could help us with the necessary assistance to enable me to travel to either India, London or any other part of the world where my heart problem could be well treated. After intensive search for all these, I was finally advised by a friend to try it here in Nigeria. After much pressure, I finally succumbed and allow them to bring me to the University of Nigeria Teaching Hospital, (UNTH), Enugu, where I have been successfully operated on and I now feel much better." Those were the words of Mr. Anthony Ude from Umuabi in Udi Local Government Area of Enugu State who was last week operated on for Aortic Valve replacement at the UNTH, Enugu. Like, Ude, 21 other persons including adults and paediatrics from across not just the South-east but beyond equally passed through the same process within a space of one week. Last week exercise was the 14th in the series since the reactivation of the open heart surgery exercise in the hospital. Only recently, a renowned Cardiologist and Head of Cardiology Department of the University of Nigeria Teaching Hospital, Prof. Basden Onwubere, had raised the alarm that over five per cent of the nation’s population may be living with surgically amenable conditions asking government at all levels to map out resources to arrest the situation before it degenerates to an unmanageable level. He had lamented that research had shown that over five per cent of Nigerians both children and adults live with surgically amenable conditions, urging urgent attention in that regard.

The open heart surgery team wheeling out a patient

“Five per cent of 170 million is so much, many people who have heart diseases and in need of operation are poor, they just call it rheumatic fever and the person’s valve is terribly damaged, many people are not able to do anything because of money. It costs a lot of money. Now we have the manpower, we need government funding. “Government has to sponsor people, if every state sponsors 10 patients each year, it would go a long way in reducing the number. If not for our foreign collaborators, it would have been a big issue,” he noted. With the high rate of deaths on account

Only recently, a renowned Cardiologist and Head of Cardiology Department of the University of Nigeria Teaching Hospital, Prof. Basden Onwubere, had raised the alarm that over five per cent of the nation’s population may be living with surgically amenable conditions asking government at all levels to map out resources to arrest the situation before it degenerates to an unmanageable level

Ude, on his hospital bed two days after surgery

of heart-related ailments in the country, the latest being the sudden deaths of the nation's football coaches, Amodu Shuaibu and Stephen Keshi, the intervention of the UNTH has become more than imperative as several lives which perhaps would have been lost are daily being saved in the hospital. At the last count, a total of 175 cases have been successfully handled since 2013 when the open heart surgery programme was resuscitated at the hospital. Also, another Nigerian-born United Kingdom-based Cardiologist, Dr. Onyekwere Nzewi, an Executive Director of the Savea-heart Foundation, a non- governmental organisation based in the United Kingdom observed that cases of heart diseases in Nigeria have reached a crescendo as a result of the obvious disregard for local natural food by the people. The cardiologist insisted that anything short of adequate funding for the open heart surgery programme in the country in order to effectively assist those with the ailments would be counter-productive. He noted that with adequate funding, UNTH alone would have the capacity to carry out hundreds of surgeries annually. He further urged to also take their destinies in their hands by increasing consumption of natural foods as against "junk foods which increase the risk of having heart diseases". “Our organisation is registered for the sole purpose of helping, not only coming to do cardiac surgery, but our main aim is to train the locals to be self-sustaining and be able to do the operations themselves, and it is only when they are able to do it themselves that the cost will come down and it will be sustainable. “There are three aspects of heart problems. Congenital heart disease, whether you are white, yellow, black, it is the same case that cuts across all races and what this is talking

about is the development of heart diseases. The same number of congenital heart disease you have in Nigeria is the same that you have in Ireland, Britain or USA. “The second is rheumatic heart disease and this is caused by simple infection of the heart, throat that is not well treated. So the immunological consequence of that is again deposited in the heart muscle and from the age of 20 -25, the heart muscle becomes thickened and deformed and causes a serious problem. Because of the campaign by the likes of the Nigerian Heart Foundation, Pan African Society, the incident has continued to drop and this is treated by two tablets of penicillin. “What is rising is Ischemic heart disease and the reason why it is rising is because we have abandoned eating our normal food -cocoa, palm oil and we now depend on fast food and westernised diet. What are the risk factors for this? You are diabetic, you are overweight, you have hypertension and your cholesterol is elevated. All these young people you hear suddenly that died is massive heart attack and until we do something about our eating habit, it is bound to continue. “There are two ways we can do something about it – change by education, we realise what causes it and change our lives or we make provision for treating it. 75 per cent of all heart operations done in the UK are Ischemia diseases and it is here with us. It is an epidemic waiting to happen and when it happens it is going to wipe the affluence of the society, not the poor,” he warned. It would be recalled that the hospital had conducted its first open heart surgery in 1974, the first by any hospital in black sub-Saharan Africa. The programme was however suspended following the hospital's relocation to its permanent site in 2004 as well as the non-availability of the necessary

TUESDAY, JULY 5, 2016 • T H I S D AY

FEATURES

CMD, UNTH, Dr Amah

facilities at the new site. It however resumed in 2013. Addressing newsmen midway into the 14th session of the programme at the hospital in Ituku-Ozala, Enugu, the Chief Medical Director, Dr. Chris Amah, said since the recommencement of the programme in March 2013, the hospital had recorded about 90 per cent success, noting that being a notable heart centre in the country, the hospital could boast of the state-of-the-art facilities that can effectively compete with the best heart centres across the globe. "This is the 14th mission in the role of Open Heart Charity Mission. They come here on 100 per cent charity. The fees are highly subsidised. What ordinarily should cost as much as N4.5 million in view of the foreign exchange palaver now cost as low as one million naira or at most N1.5 million. This is good news for the country. "We have our partners from the UK, Dr. Nzewi from Royal Victoria Hospital, UK and a Director with the SHF is leading a team of nine experts on this mission and they are working with our local team. By this weekend, this team will leave and another set of Paediatric Heart Surgeons will arrive to handle the 12 paediatric cases," he said. He expressed optimism that doctors from the hospital who had undergone intensive overseas training would be handling the open heart surgeries without assistance

The intervention of the UNTH has become more than imperative as several lives which perhaps would have been lost are daily being saved in the hospital. At the last count, a total of 175 cases have been successfully handled since 2013 when the open heart surgery programme was resuscitated at the hospital

Dr. Nzewi

The main entrance gate to UNTH, Enugu

from foreign doctors before long. He also noted that several others were on the waiting list for the surgeries stressing however that before anybody is operated on, such a person needed to be prepared psychologically and medically "to know that heart surgery is not a death-trap." While describing heart surgery as a "high risk surgery" where up to 20 per cent mortality is acceptable, Amah noted that the hospital had continued to improve by the day. According to him, unlike in the past, the hospital can now handle up to three cases in a day. He expressed appreciation to their partners from the VOOM Foundation led by Dr. Vincent Ohaju who have consistently assisted the hospital with medical equipments running into several millions of naira. Amah noted that the hospital would want to carry out at least 100 open heart surgeries annually if enabled by funding, noting that because of the huge financial involvement in carrying out the exercise coupled with the fact that most people with heart related diseases were poor, most people were yet to take advantage of the exercise in the hospital. “I can tell you that if we have improved

funding, we can even handle 200 cases per annum and this will save this country huge sums of money that ordinarily would have left the country through capital flight,” he said. The CMD disclosed that UNTH was in 1986 designated as centre of excellence for cardio-thoracic surgery having performed the first open heart surgery in sub-Sahara Africa in 1974 noting that the open heart surgery programme of the hospital suffered some reversals for 10 years, before it was reactivated by March 2013 through the collaboration of foreign partners. Another key-member of the Cardiothoracic Surgery team of the hospital, Prof. Martin Aghaji praised the success rate of the programme in the hospital insisting that since 2013, even local hands have continued to improve. “There is no doubt about it; it has made a lot of difference. The foreign team coming has helped a lot, first and foremost in terms of specialised manpower, too in terms of equipment, and three in terms of money and logistics. And the success rate is encouraging despite the fact that their cases are very, very bad cases.

“The point is that it has to be gradual, at the moment we are doing all closed heart surgery, that’s in between the mid ribs and I can assure you that after this mission we will start doing probably once every week," he said expressing hope that before long, doctors in the hospital would take effective charge of the programme. “First and foremost if you look at facilities here, you are looking at facilities just like in Europe, we didn’t have it in the old site. The support is there, the management has been wonderful; mind you that this centre was built as an ordinary ward from direct labour. If it were to be built by government, it would have cost probably 100 times what it costs and finished probably in 100 years," he said. Though the hospital had handled only 175 surgeries, the number remains a far-cry compared to the array of people still waiting on the line to take part in the process. There are equally so many others who are obviously inhibited by funds constraints. Despite the seeming small number, it remains a cheery news that at last most Nigerians may have finally found a solution to the constant foreign trips on account of heart-related ailments.

IMAGES

L-R: President, Abuja Co-operative Federation (ABCOF), Emeka Mbagbha; President, National Co-operative Financing Agency of Nigeria (CFAN), Adebola Orolugbagbe; and the Head, Enterprise Business Unit (North), MTN Nigeria, Abdullahi Auwal Abdullahi, during the 2016 International Co-operative Day, with the theme “Cooperative: The Power to Act for a Sustainable Future,” in Abuja...recently

T H I S D AY • TUESDAY, JULY 5, 2016

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

Kaduna State Governor, Mallam Nasir El Rufai; Minister of Defence Mansur Muhammad Dan-Ali; and VicePresident Yemi Osinbajo during the vice-president’s visit to the state for the Armed Forces Command and Staff College Senior Course 38 graduation ceremony in Jaji, Kaduna State...recently

L-R: Executive Secretary, Abuja National Mosque (ANM), Alhaji Ibrahim Jega; newly promoted Chief Superintendent of Police (CSP) Ibrahim Tijjani; and the Director, Finance and Administration, ANM, Alhaji Abdulkarim Muazu, during the decoration of Tijjani with his new rank in Abuja...recently enock reuben

L-R: Guest Lecturer, Dr Busrah Salaudeen; Chairman, Osun State House Committee on Information and Strategy, Hon. Olatunbosun Oyintiloye; Speaker, Hon. Najeem Salaam; and a member of the Assembly, Hon. Tomilayo Aloba, during the rounding off of ‘Ramadan Lecture series/Iftar with Oyintiloye’ organised for Muslims in Obokun Constituency at Ibokun...recently

R-L: Director General, Anti-Corruption and Psychology Rebirth Group, Dr. Olu Sybil, receiving a four-way test certificate from the outgoing governor of Rotary District 1925, Dr. Mike Omotosho, during the Rotary District 1925’s humanitarian reporting awards in Abuja...recently

Abia State Governor, Dr. Okezie Ikpeazu (left), and his deputy, Ude Oko Chukwu, during a a press conference in Government House Umuahia...recently

L-R: Business Director, Nestle Middle East, Antonio Ferreira (South Africa); Managing Director, Compartamos Bancos, Fernando Alvarez Toca (Mexico); Chief Brand Strategist, PRM Africa Marketing and Communications, Mike Dada (Nigeria); Senior Lecturer, Harvard Business School, Dr. Jill J. Avery; and the Business Director, Life Sciences Corning Incorporated, Loic Le Drett, during a Strategic Marketing Management programme, at Harvard Business School in Cambridge, Massachusetts, United States of America...recently

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD NIBOR PRIME 1-MONTH

R A T E S LOAN

4.4583% 9.1071%

3-MONTH 3-MONTH

A S

11.0102% 12.3790%

A T

NITTY 1-MONTH 2-MONTH 3-MONTH

GroupBusinessEditorChikaAmanze-Nwachuku Emailchika.amanzenwachukwu@thisdaylive.com

08057161321, 08033294157

J U N E 6.9949% 7.2368% 8.0819%

1 0 ,

1-MONTH 9-MONTH 12-MONTH

9.2061% 9.5872% 10.5042%

2 0 1 6

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

Quick Takes Total Files Arbitration against Algeria

French oil major, Total has filed a request for arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s, Chief Executive Patrick Pouyanne said on Saturday.“We tried as always to find a mutual agreement first, it failed, so we decided that we would seek arbitration,” Pouyanne told Reuters on the sidelines of a conference in Aix-en-Provence.“There are talks with states a bit everywhere. There’s nothing particularly because it is Algeria,” he said, adding that it was “business as usual”. Newspaper Le Monde reported on Saturday that Total and its Spanish partner Repsol had initiated litigation at the International Court of Arbitration in May against Algeria and state-run oil company Sonatrach.Repsol declined to comment.The dispute was sparked by Algeria’s decision in 2006 to change an oil tax scheme retroactively. The move has prompted other oil groups to claim compensation. U.S. firm Anadarko Petroleum Corp and Maersk Oil, a unit of Danish conglomerate A.P. Moller-Maersk,, reached settlements in 2012 worth about $4.4 billion and $920 million in oil respectively.Asked if potential compensation was in the hundreds of millions of euros, as suggested by Le Monde, Pouyanne said: “Let’s not exaggerate, it’s less than that, you’ll see,” he said, declining to elaborate further.

PUTTING THE RECORD STRAIGHT

L - R: Acting Director, Corporate Communications, Central Bank of Nigeria (CBN), Isaac Okorafor; Director of Financial System Strategy 2020, CBN, Mohammed Suleyman; Executive Director, Shared Services and Products, Fidelity Bank, Chijioke Ugochukwu; Director, Consumer Protection Department, CBN, Umma Dutse; and Director, Banking and Payments System Department, CBN, ‘Dipo Fatukon at the unveiling of NeFF annual report in Lagos ... recently

Teriba: Why Nigeria Was Hit Hard by Collapse of Oil Prices Ejiofor Alike The Managing Director of Economic Associates, Dr. Ayo Teriba has explained that Nigeria was hit hard by the collapse of the crude oil prices owing to the failure of the country’s capital account, which led to absence of infrastructure to encourage diversification. In his lead presentation at the 2016 Second Business Clinic organised in Lagos at the weekend by the Petroleum Downstream Group of the Lagos Chamber of Commerce and Industry (LCCI), the renowned economist said the only way to resolve the current challenge

ENERGY of collapse of oil prices was to break government’s monopoly in pipelines, power transmission and rail. Teriba argued that no country can diversify without infrastructure, especially rail system, stressing that moving output by roads would not encourage manufacturing. According to him, the slump of the oil price should not have hit Nigeria as hard as it has done if the country had invested in infrastructure. He further stated that Saudi Arabia depends on crude oil more than Nigeria with oil

accounting for 55 per cent of their economy. “Their minister went to the White House to say that they lost $600 billion to the drop in oil price and that they wanted to shift to the non-oil sector. The bottom line of his message is that they wanted Foreign Direct Investment (FDI). Saudi Aramco wants to sell five per cent stake and that will fetch $120 billion. So, they have lost in oil price but FDI will compensate them. Nigeria has more non-oil economy than Saudi, though they have more oil economy than Nigeria and was affected more than Nigeria by the drop in oil price. But if Nigeria takes

the same steps Saudi has taken, I think Nigeria is more attractive for investment than Saudi. The main reason it is affecting Nigeria more is her capital account failure. If Nigeria had broken government monopoly in rail, power transmission and pipelines, the country would not have been in serious problem,” Teriba explained. Teriba argued that the difference between the 2008 global financial crisis and the current crisis is that even as steep as the 2008 drop in crude oil price was, it lasted for only three quarters, while the current Continued on page 24

OPTS: Nigeria Can Generate 40,000MW of Electricity from Gas Reserves Chineme Okafor in Abuja The Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) has said that Nigeria can generate 40,000 megawatts of electricity daily for 68 years from her proven but undeveloped gas reserves, estimated at 181 trillion cubic feet (TCF), if properly harnessed. The OPTS said apart from this huge electricity generating potential, Nigeria could also derive other huge economic benefits from her gas resources. Managing Director (MD) of Chevron Nigeria Limited, who also is the OPTS Chairman, Mr.

ENERGY Clay Neff stated this at a recent conference in Lagos. Neff, represented by the MD of Shell Petroleum Development Company of Nigeria (SPDC), Mr. Osagie Okunbor, stated that while only about 25 per cent of these reserves are currently being produced or under development, the remaining 135 trillion cubic feet of proven gas is not associated with any planned development. He called for a change in this. According to him, Nigeria has taken steps to accelerate gas production from her oil

fields from 415 billion cubic feet (bcf) in 2000 to 1,780bcf in 2015. He said the country had also reduced flared volumes by 60 per cent over the period through investments in flaresout projects, adding however that there was still need for improvement. The OPTS chair said domestic gas supply to sectors, including the power sector had not really grown due to several challenging issues. He listed some of the issues to include repayment of outstanding gas invoice arrears; development of adequate infrastructure base; and ensuring sufficient

funding for gas development. Others include provision of enabling commercial and fiscal terms, and ensuring conducive business environment, which includes providing a secure operational environment. Neff said these issues needed a closer appraisal and solution. Neff said: “With 181 trillion cubic feet of proven gas reserves, and multiples of this figure in undiscovered gas resources, OPTS believes that Nigeria has the potential to be a gas super-power. These reserves place Nigeria as the largest in Africa and the ninth largest Continued on page 24

Saudi Cuts Light Crude Prices

Saudi Arabia has cut August prices of the light crude oil grades it sells to Asia, with that for Arab Extra Light dropping by the most in nine months, in a bid to spur demand for the additional volumes being pumped from an expanded field. Coming before refiners in Asia head in to their maintenance season, the price cuts by the world’s top oil exporter are an attempt to ensure buyers lift more light crude, mainly Arab Extra Light - additional 250,000 barrels-per-day is set to be pumped from the kingdom’s Shaybah oilfield in July. Saudi Arabia’s move to lower the official selling price (OSP) will intensify competition with rivals such as Russia and the United Arab Emirates, who produce similar oil grades and are also looking for a bigger share of the market in Asia, the world’s top oil consuming region. “They’re more proactively marketing Arab Extra Light and that will definitely put pressure on ADNOC (Abu Dhabi National Oil Company),” a trader with a North Asian refiner said. Saudi Aramco last week slashed the August OSP for Arab Extra Light crude by 90 cents a barrel from July, the biggest drop in nine months. This was nearly double traders’ expectation for a 30-50 cents cut.

Libyan Oil Companies to Merge

Libya’s state energy company National Oil Corporation has agreed to merge with a rival company established in the east by one of the country’s two former competing governments, the NOC said in a statement. The merging of the two NOCs is a positive step to recovering the OPEC member’s oil sector which has been battered by militant attacks, rival export attempts and closures of pipelines and oil ports by armed factions. It is also a boost for the U.N.-backed unity government and its presidential council in Tripoli that has struggled to extend its influence over hardline factions and their armed supporters who set up rival administrations in the capital and in the east. The NOC said current chairman, Mustafa Sanalla, who was named executive before any rival administrations were in place, will remain in the top post while former eastern NOC head Nagi el-Maghrabi will join the unified NOC board. “There is only one NOC, and it serves all Libyans,” Sanalla said in the statement. “This agreement will send a very strong signal to the Libyan people and to the international community that the Presidency Council is able to deliver consensus and reconciliation.”

“Yes, I have money but I don’t have properties or even a house outside Nigeria. Wherever I go, I stay in a hotel. This means that every amount of money, we make here, we throw it back into the country” President, Dangote Group of Companies Aliko Dangote

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD TERIBA: WHY NIGERIA WAS HIT HARD BY COLLAPSE OF OIL PRICES

crisis has already lasted for two years. According to him, during the 2008 crisis, Nigeria’s growth held up but under the current crisis, Nigeria had experienced negative growth in Gross Domestic Product (GDP). “It needn’t be severe on Nigeria like this. We needn’t have felt it,” he added. “The reason we are hurt is that we did not open the window for investment to come. We were focused on export income from oil. Rail, pipelines, and electricity transmission have remained under government monopoly,” he said. He further stated that Nigeria had attracted more FDI than India, South Korea and United Arab Emirates as at 1990 but added that these countries have since overtaken Nigeria. Teriba insisted that borrowing is not the solution to the present crisis but attracting investment. According to him, the present government inherited most of its economic policies and could capitalise on its positive image at home and abroad to attract investors. OPTS: NIGERIA CAN GENERATE 40,000MW OF ELECTRICITY FROM GAS RESERVES

in the world. However, only about 25 per cent of those reserves is being produced or under development today. The remaining 135 trillion cubic feet of proven gas is not associated with any planned development. And, there is virtually no active exploration in search of new gas reserves. The total power potential of these discovered, but undeveloped reserves represent 68 years of 40,000MW compared to today’s power generation of approximately 4,000MW.” He added: “Nigeria generates the equivalent power of just one 40-watt light bulb per person - one of the lowest power generation levels per person in the world. “This compares to countries such as South Africa at 20 light bulbs per person, United Kingdom at 33 and the United States at 80.”

Group Business Editor

Chika Amanze-Nwachuku 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 (Maritime)

NEWS

Brexit: Not All Gloomy for Nigeria, LCCI Insists

Crusoe Osagie

The Lagos Chamber of Commerce and Industry (LCCI) has stated that exit of Britain from the European Union poses threats and opportunities for the Nigerian economy. The Director General, LCCI, Mr. Muda Yusuf in a statement to THISDAY added that although Brexit has a number of immediate and remote implications for the Nigerian economy, it is not all gloomy for the economy. He added that a weak British currency offers an advantage to importers from Britain, saying that with respect to trade, Britain accounts for only 4.4 per cent of Nigerian global trade and the EU accounts for 38.8 per cent. He maintained that it is unlikely that the Brexit will have a material impact on Nigeria’s balance of trade situation. “If anything, the trade between Nigeria and United Kingdom (UK) could be further improved on account of the likely depreciation of the British pounds and the affinity with Britain within the context of the Commonwealth,” he said He stated that Nigeria is yet to sign the European Partnership Agreement (EPA), which also reduces Nigeria’s exposure to the shocks of the EU economy, especially from a trade perspective, but stressed that there is a diaspora dimension, pointing out that the current sentiments in the United Kingdom are to adopt tougher stance on immigration issues. ”We have over one million Nigerians in the United

Kingdom; Nigeria is also a major recipient of diaspora remittances in Africa. Therefore, the unfolding scenario may have some adverse implications for remittances to Nigerians from the UK. This will happen from the perspectives of tougher immigration regulations and enforcement as well as the likely slowdown of the British economy,” Yusuf added. “On the whole, the impact of Brexit on the Nigerian economy is unlikely to be profound. Besides, negotiations will

still take the next two years. Most of the current responses are driven by uncertainties and expectations which will fizzle out in the not too distant future” he said. He noted that the outcome of the referendum has triggered some measure of uncertainty and anxiety in the global economy, pointing out that the British economy, which is worth $3 trillion, is the fifth largest economy in the world and the second largest within the EU. ”It is, therefore, a major component of both the global

Oil and gas industry stakeholders, as well as financial experts who gathered at the 2016 Second Business Clinic organised in Lagos at the weekend by the Petroleum Downstream Group of the Lagos Chamber of Commerce and Industry (LCCI) have called for the scrapping of the bridging claims paid by fuel marketers under the Petroleum Equalisation Fund (PEF) and the streamlining of the operation of the Pipelines and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC). The stakeholders, who insisted on full deregulation, lauded the removal of petrol subsidy by the federal government, which was necessitated by the liquidity problems experienced in connection with the collapse of the crude oil prices. Speaking at the Business Clinic with the theme: ‘Petroleum Products Pricing and Foreign Exchange Liberalisation: Its Implication and Sustainability,’ the Chair-

from the resultant weakening of investors’ confidence within the economy. Furthermore, he said the Brexit implies that investors within the British economy will no longer have free access to the EU market of over $16 trillion and a market size of over 500 million people, and said that it will reflect in the strength of the currency as there is a relationship between the strength of the currency and the robustness of its economy.

FOR BETTER OIL AND GAS SECTOR

L-R: Executive Director, Falcon Corporation and incoming NGA 2nd Vice-President, Audrey Joe-Ezigbo; Chief Executive Officer, Frontier Oil and NGA 1st Vice President, Dada Thomas; NGA President and Managing Director, Oando Gas and Power, Bolaji Osunsanya; a staff of Shell Petroleum Dev Co, John Kadiri; and CEO Xenergi Tech and NGA Publicity Secretary, Debo Fagbami at the NGA Business Forum and AGM in Lagos...recently

Stakeholders Demand Scrapping of Bridging Claims, Streamlining of PPMC Operation Ejiofor Alike

economy and that of the EU. Naturally, therefore, shocks to the British economy will have some transmission effects on the global economy. This perhaps informed the immediate responses of global and domestic financial markets. However, this dimension of the impact is unlikely to endure. They are responses driven by expectations and uncertainties,” he added. He said there is the currency effect, saying that a high probability that the British economy will suffer some setbacks arising

man of Integrated Oil and Gas Limited, Captain Emmanuel Ihenacho who described the subsidy removal as a good development, however noted that the upper price cap decreed on petrol by the federal government would have been removed to allow free competition. Ihenacho argued that the removal of the upper price cap would result in the lowest possible prices for product supplies arising through keener competition between the oil marketers. “The continued imposition of PEF payments is a tax on trade, which will ultimately be borne by the product consumer. As PEF payments are not chargeable against any particular logistic services rendered, they should be discontinued in the light of the need to minimise the market price of the products to which they relate,” Ihenacho said. He also argued that PPMC should reduce its involvement in the downstream sector and gear itself to intervene only occasionally to stabilise fuel supply. PPMC, he said, cannot

match the independent marketers in competitive cost and product pricing supplied to the Nigerian market. Also speaking, the Guest Speaker and Managing Director of Economic Associates, Dr. Ayo Teriba said the upward review in petrol price and electricity tariffs, coupled with the devaluation of the foreign exchange at the parallel market, had led to inflation. He said though inflation was rising as a result of these factors, the fear of its implosion was exaggerated. Also in his speech, the Group Managing Director of Access Bank Plc, Mr. Herbert Wigwe said the country had been standing in front of a moving train in the previous 12 months by not allowing market forces to determine the foreign exchange rate and also how trade was done. Wigwe, who was represented by the Executive Director of the bank, Mr. Roosevelt Ogbonna however acknowledged that no country would allow free floating exchange rate, adding that exchange rate is managed everywhere in the world.

FGtoUndertakeHousingSurvey, Audit of Nigeria’s Land Chineme Okafor in Abuja The federal government plans to undertake a comprehensive geographical survey of Nigeria’s landed resources to determine their value and components for future economic development plans, Minister of Power, Works and Housing, Mr. Babatunde Fashola has said. He also said the government will embark on another round of housing survey in the country to determine who it should build houses for, where it should build the houses and for what purposes the houses would be built. Fashola disclosed this recently when he read the final communique of discussions by experts at a two-day session on affordable housing in Abuja. According to the minister, the government will through the survey also create a Geographical Information System (GIS) on Nigeria’s landed resources. He said with the GIS data, builders would be able to access and analyse areas of interests for building projects in the country. He noted that the national housing survey which his ministry would champion would be done with critical

stakeholders such as the Real Estate Developers Association of Nigeria (REDAN). He read out other critical recommendations of the twoday session to bridge Nigeria’s housing deficits. According to him, stakeholders agreed that governments at both federal and states levels should reduce the cumbersome process of land acquisition and land titling with a view to easing housing construction. He also said there was an agreement at the sessions that local solutions to mortgage financing through generational mortgage financing where tenor could be extended beyond the original mortgagee for continuity could be adopted by Nigeria to bring more people into the housing mortgage. The minister added that the need to maintain a single digit interest rate in mortgage loan and perhaps subsidy for the low income earners was also recommended. He stated the need to recapitalise the Federal Mortgage Bank of Nigeria and enforce the National Housing Fund (NHF) contribution as enshrined in the enabling Act.

WEEKLY PULL-OUT

05.07.2016

NBA-SBL CONFERENCE TACKLES LAW REFORM AND ECONOMIC DEVELOPMENT

Vice President, Professor Yemi Osinbajo SAN and SBL Chairman, Mr. Asue Ighodalo at the 10th Annual Business Law Conference of the Nigerian Bar Association Section on Business Law

2/DASHBOARD

05.07.2016

The Service of the Originating Process of the Court On the Defendant Confers On the Court the Competence and Jurisdiction to Adjudicate On a Matter PAGE 3

LawPavilion Celebrates Supreme Court Justices “Words in Gold” Nigerian Judicial Award Ceremony PAGE 4

Federal High Court Goes Digital, Launches e-Filing Case System PAGE 4

EFCC and Fayose’s Immunity PAGE 5

‘The Law is Diverse and Ever Involving’ PAGE 5

QUOTABLES ‘A Notice of Appeal is clearly not a Stay and INEC has broken no Law in issuing Certificate of Return to Ogah. But they have relied on the prudential principle by cautioning themselves, giving the fact that they have received a Notice of Appeal, which in itself does not constitute a Stay of Execution of the order of the court. However INEC has broken no law by issuing the certificate of return to Ogah.’ – Former NBA President, Dr. Olisa Agbakoba SAN

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

Human Right to Clean and Safe Water: Promoting Water Justice for Ogoniland’s Nisisioken Ogale Community PAGE 6

Why the Federal High Court Cannot Remove Ikpeazu as Governor of Abia State PAGE 7

Tribunal Bias in African Arbitrations PAGE 10

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

LAW REPORT/3

The Service of the Originating Process of the Court On the Defendant Confers On the Court the Competence and Jurisdiction to Adjudicate On a Matter

t is settled law as held by the Supreme Court in the instant appeal that the service of an Originating Process of the Court on the Defendant confers on the Court the competence and jurisdiction to adjudicate on a matter. The Supreme Court in the instant appeal held that the 1st and 2nd Respondents’ were not served with the Originating Process, and were entitled ex debita justitiae to have the Trial Court’s judgment set aside.

Facts The Appellant (1st Defendant at the Trial Court) entered into a contract with the 3rd and 4th Respondents (Plaintiffs at the Trial Court) for the supply of goods worth N250, 000,000.00 (Two Hundred and Fifty Million Naira). The 4th Respondent supplied the goods to the Appellant which the 3rd Respondent paid for on behalf of the Appellant with the understanding that the Appellant would repay the 3rd Respondent. The Appellant however defaulted in its payment to the 3rd Respondent. In light of the foregoing, the 3rd and 4th Respondents by an Originating Summons, commenced an action against the Appellant and the 1st and 2nd Respondents’’ at the High Court of Delta State, Isiokolo Judicial Division (“trial court”), claiming the sum of N250, 000,000.00 (Two Hundred and Fifty Million Naira). The Appellant was the Chairman and facilitator of the 1st and 2nd Respondents. The bailiff of the Court effected service by dropping three copies of a Writ of Summons in the Appellant’s office at Sapele. The 1st and 2nd Respondents were not served. The Appellant engaged the services of Chief A.K Osawota to represent him and the 1st and 2nd Respondents in the hearing of the suit. At the hearing on 3rd February 2000, Chief A.K. Osawota did not oppose the 3rd and 4th Respondents’ Counsel's application for judgment. The Trial Court accordingly entered judgement against the Appellant and the 1st and 2nd Respondents. Upon becoming aware of the Judgment, the 1st Respondent filed an application for stay of execution of the judgment and for an order to set it aside judgment at the Trial Court on the following grounds; a. The 2nd Respondent is not a juristic person capable of suing or being sued in a court of law b. The Originating Summons in this action was not served on the 1st Respondent as prescribed by law c. There was a breach of fair hearing as the 1st Respondent was neither heard nor given an opportunity to be heard before the Order of the Court dated 3rd February 2000 was made against it. The Trial Court in its ruling dismissed the application. The 1st and 2nd Respondents being dissatisfied with the Trial Court’s ruling, appealed to the Court of Appeal Benin Judicial Division (“the Lower Court”). The Lower Court in its judgment favoured the 1at and 2nd Respondents and allowed the appeal. The Appellant being dissatisfied with the judgment of the lower court appealed to the Supreme Court. The Appellant in its brief of argument formulated the following four issues for determination; a. Whether the findings/consideration of facts in the supplementary records by the lower Court after admitting that the records are not in the file, has not occasioned a miscarriage of justice, particularly, in the light of the dismissal of the preliminary objection? b. Whether the lower Court was right when it held that the first and second Respondents were not served with the Originating Summons taking into consideration the whole circumstances of this case? c. Whether the learned justice of the Court of Appeal were right when they held that the 3rd and 4th Respondents did not disclose any cause of action against the 1st and 2nd Respondents? d. Whether the learned Justice of the Court of Appeal were right by setting aside the judgment and ruling of the trial Court dated 3/21/2000 and 29/5/2000 respectively? The Supreme Court considered the grounds of the 1st Respondent’s application to set aside the Trial Court’s judgment and held that the second issue alone would suffice in the determination of the appeal and thereafter adopted it as the sole issue for determination in the appeal. On the sole issue, the Appellant contended that the Originating Summons was served on the 1st and 2nd Respondents' through the Appellant based on the fact that the address for service indicated on the Originating Summons for the Appellant and the 1st and 2nd Respondents was the same “Enerhen Road, Enerhen-Effurun, Delta State”. He further argued that the 1st and 2nd Respondents admitted that the Appellant was their Chairman and thus the service of the Originating Summons on the 1st and 2nd Respondents through the Appellant was valid and proper. He relied on Section 78 of the Companies and Allied Matters Act Cap 59 LFN 1990 (“CAMA”) and Order 12 Rules 8 of the High Court Civil Procedure Rules of Bendel State (“High Court Rules”). The said provisions state that a court process shall be served on a company by leaving it with a director or principal officer of the company or at the registered or head

CC. Nweze, JSC

In The Supreme Court of Nigeria Holden at Abuja On Friday the 20th Day of May, 2016 Before Their Lordships Walter Samuel Nkanu Onnoghen Clara Bata Ogunbiyi Kumai Bayang Aka’ahs Kudirat Motonmori Olatokunbo Kekere-Ekun Chima Centus Nweze Justices, Supreme Court SC.1272005 Between Estate of Late Chief Humphrey I.S Idisi (Substituted by Order of court made on 12/1/16 ............. Appellant And 1. Ecodril Nigeria Ltd 2. Expro Nigeria Ltd 3. Chief Gabriel Ofotokun 4. Vic-Emeks Intergrated Co. Nig. Ltd ...... Respondents Judgment Delivered By Chima Centus Nweze, JSC

office of the company. He submitted that service of the Originating Summons on the 1st and 2nd Respondents through the Appellant, whether inside or outside their premises was proper service and further argued that the High Court Rules do not expressly provide that the Director, Secretary or Principal officer of the company must be served within the Company’s premises, or at its office whether inside or outside their premises. He thereafter contended that the onus was on the 1st and 2nd Respondents to prove that there was a contrary mode of service adopted by them and in the absence of such proof, reliance on the High Court Rules was proper and such service was deemed to be personal service on the 1st and 2nd Respondents. He further submitted that the Appellant having accepted service for and on behalf of the 1st and 2nd Respondents, whatever subsequent act he did in respect of the suit was their act and binding on them and the 1st and 2nd Respondents, having entered appearance through counsel to wit, Chief A.K. Osawota had waived whatever irregularity was inherent in the service of the processes. In addition, he argued that service on a director or principal officer of a Company whose interest was in conflict with that of a company was proper service because mere sentiments and domestic policies of a company cannot waive statutory provisions and urged the court to discountenance NATIONAL ELECTORAL COMMISSION v IZUOGU AND ORS (1993) 2 NWLR (pt. 275) as being irrelevant and inapplicable to this matter. He also submitted that the non-production of three proofs of service indicating the number of defendants sued and served, or whether it was a writ of summons (not Originating Summons) that was not served on the 1st and 2nd Respondents was not fatal but a

mere irregularity which did not affect the substance of this matter. He further argued that the 1st and 2nd Respondents never contested the Appellant’s power to appoint counsel for them, or that it was a writ of summons that was served and not an originating summons. They also did not establish by way of evidence that they were denied fair hearing. In response, the 1st and 2nd Respondents argued that the lower court was right when it held that they were not served with the Originating Process, and therefore all the proceedings against them at the Trial Court were vitiated on account of lack of fair hearing. He further argued that the 1st Respondent is a limited liability Company and as a result the applicable law in respect of service of processes on it is Section 78 of CAMA. Thereafter he submitted that it would not be proper service where a director and his company were sued as defendants in an action and the relief sought as stated in the Originating Summons indicated a conflict of interest between that company and the director of the company, and the company is served through that director. In addition, he argued that the relief on the Originating Summons clearly showed that the intention of the 3rd and 4th Respondents at the trial Court was to sue only the Appellant (in his private capacity) to recover the money he owed them and that the 1st and 2nd Respondents were joined in the suit at the trial court presumably because the Appellant had told the 3rd and 4th Respondents that he had some money due from the 1st and 2nd Respondents wherein he is a director. Thereafter he submitted that the fact that the Originating Summons were served on the Appellant in his personal office at Sapele was strong evidence that he was the main Appellant to the suit at the trial Court. He thereafter submitted that service on the director should not in the circumstance qualify as service on the 1st and 2nd Respondents since both of them were defendants in the action at the trial court. He argued, while relying on the High Court Rules, that where service of an originating process was in issue, the Court had to be satisfied that there was service by asking for proof of service. He further argued that where more than one defendant is sued, there must be proof of service on each defendant in such capacity, except there is an order of Court to the contrary. Court’s Judgment and Rationale The Court stated that the 1st Respondents’ application at the Trial Court raised a fundamental issue, which went to the jurisdiction and competence of the Trial Court to enter the judgment as it did. The Court further referred to the findings of the lower court in which it was stated that the Bailiff swore in its affidavit of service that he had served upon the Appellant at Sapele three copies of a Writ of Summons and hearing notice. The Court thereafter agreed with the findings of the lower Court which held that because a Writ of Summons and hearing notice (and not an Originating Summons which was dealt with by the trial Court) was served on the 1st and 2nd Respondents, they were not served directly or indirectly and based on this they were not given a fair hearing at the Trial Court. The Court held that based on the aforementioned fact, the 1st and 2nd Respondents were relieved of the burden of proving non-service and further stated that the Originating Process whether an Originating Summons or Writ of Summons ought to have been served on them. The Court further held that the Trial Court had failed in its duty to ensure that the actual originating process had in fact been served. Thereafter, the Court reprimanded the Appellant’s Counsel for filing this appeal and referred to it as an attempt to stultify the process of administration of justice. The Court further held that it had no justification for interfering with the lower Court’s judgment as it is settled that the failure to serve process, where the service of process is required such as in this case, is a failure which goes to the root of the case and it renders any order, against the party who should have been served with the process, null and void. Thereafter the Court held that the Trial Court’s judgment against the 1st and 2nd Respondents without service was a judgment given without jurisdiction and is therefore null and void and a fundamental defect, which rendered the proceedings a nullity. The Court further held that the Appellant's Counsel’s application of Section 78 of CAMA were hypothetical or at worst otiose. The Court affirmed the judgment of the lower Court and dismissed the appeal for lacking in merit. Cost of N500, 000 (Five Hundred Thousand Naira) was awarded in favour of the Respondents. Representation For the Appellants: A.K Osawota, Esq. For the 1st and 2nd Respondents: Olumide Aju For the 3rd and 4th Respondents: Kunle Edu, Esq. Reported by Adegbolayemi Alakija, Aluko & Oyebdoe Lagos.

4/NEWS

05.06.2016 Kidnap of Judicial Officers: Lawyers Recommend Death Penalty for Convicts Yekini Jimoh in Lokoja

L-R:: NBA President, Mr. Augustine Alegeh SAN, Chairperson, ICC Conference Planning Committee, Mrs. Dorothy Udeme Ufot SAN and President ICC International Court of Arbitration Paris, Mr. Alexis Mourre at the just concluded 1st ICC Africa Regional Arbitration Conference held at Eko Hotels & Suites, Lagos

LawPavilion Celebrates Supreme Court Justices “Words in Gold” Nigerian Judicial Award Ceremony Jude Igbanoi Africa’s Leading IT Partner to the Legal Services industry has scored another first by putting together a first-of-its-kind Judicial Awards Ceremony dubbed “Words in Gold” to recognise, celebrate and immortalise present and past Justices of the Supreme Court of Nigeria who through their pronouncements have contributed immensely to the development of Law and Jurisprudence. In what is poised to be a remarkable and iconic event, LawPavilion has taken the bold and unprecedented step of recognising Nigeria’s foremost Judges from 1960 till date. As Africa’s leading Electronic Law Report and IT Support Partner to the Legal Services Industry in Africa especially Nigeria, LawPavilion easily boasts of the largest database of more than 15,000 decided cases, Case Index of more than 80,000 issues and Laws of the Federal Republic of Nigeria with updates amongst others. According to Ope Olugasa, the Managing Director, the concept of the Nigerian Judicial Awards,

“Words in Gold” crystallised in the course of the development of the Company’s newest software for the Legal Services Industry, LawPavilion Prime. This new software is not the usual run of the mill legal research software but is actually Africa’s first and only Case Analytics software. For more than ten (10) years, LawPavilion through its ground-breaking work in the legal industry, has observed the detailed reasoning of many of the Justices/Judges on the Bench and their uncanny ability to apply principles of law and equity to matters and disputes brought before the Court. Until now, those efforts and contributions had gone almost unnoticed or uncelebrated, and thus compelled LawPavilion to act in this capacity to honour and celebrate outstanding and distinguished Justices of the Supreme Court in particular being the highest Court in the land. In Mr Olugasa’s words, “As a foremost service provider in the legal services industry, we have deemed it necessary and fitting to recognise and celebrate eminent Jurists, both past and present who have sat in the hallowed

Chambers of our highest courts and made pronouncements that are worthy of being in any Hall of Fame.” The “Words in Gold” Judicial Awards idea was borne out of our work through several years during which we have been collecting, collating, analysing and publishing the intellectually stimulating judgments that have emanated from our Superior Courts of Record, particularly the Supreme Court. Our objective is quite simple really – we recognise that Judges give up so much in order to carry out their duties and often personal sacrifices have been made. Often, our society has been more concerned about what has not been done rather than recognise and applaud appropriately what has been done. For too long, our Justices have laboured tirelessly and often behind the scenes in upholding the Rule of Law and ensuring our steady progress towards a just and egalitarian society. Having read through some of the distilled judgments of my Lords, our organisation has been simply amazed at the fluidity of thoughts and ability to distil the real issues whether in leading or

dissenting Judgments emanating from the Supreme Court of Nigeria. Our goal ultimately is to celebrate every Nigerian Judge whose words must be immortalised in Gold. We are only just starting with the Supreme Court Justices being the highest Court in the land whom all other Courts must follow as a matter of necessity and compulsion.” The Nigerian Judicial Awards “Words in Gold” has the support and goodwill of eminent and notable stakeholders in the Justice Sector in Nigeria such as His Excellency, the Vice President of the Federal Republic of Nigeria, Prof Yemi Osinbajo SAN who will be delivering the Keynote Address themed “Data as the new Equity – New Approaches for Enhanced Justice Delivery and Administration”. The Nigerian Judicial Awards “Words in Gold” also enjoys the support of the Chief Justice of Nigeria (CJN), His Lordship, Hon. Justice Mahmud Mohammed, who is the Very Special Guest of Honour; Nigerian Institute for Advanced Legal Studies (NIALS), the Nigerian Bar Association, and the International Development Organisations amongst others.

Following rampant cases of kidnap of members of the Judiciary in Kogi State, legal practitioners in the state have called on the Federal and State Government to recommend the death penalty for any convicted kidnappers. The call had become necessary in view of the rampant cases of kidnap of members of the Bar and the Bench in the state as there was dire need for drastic action on the part of the law and security agencies to address the situation. Describing the situation as worrisome and embarrassing, the former chairman of the Nigerian Bar Association, Lokoja branch, Mr. Williams Aliwo recommended a joint task force consisting of the Army, Police, Navy and the DSS be put in place. Aliwo said that though there was general insecurity in the country, it was particularly worrisome that operators and stakeholders of the legal sector had become special species as subject of attack and kidnap for the hoodlums. He opined that the security of Judicial and Legal officers should be taken seriously because: “On daily basis, the destinies and life dispositions of such criminals are being determined by the courts.” “Now, the story is being told that those in the adjudicating sector of our society are not particularly safe and it is a way of blackmailing them or caging them into submission by the hoodlums”, he said. Also speaking, Mr. Daniel Adinoyi, chairman, Judicial Staff Union of Nigeria (JUSUN), Kogi State chapter said regular security around courts should take cognisance of the peculiarity and nature of the cases being tried. He suggested that when sensitive cases like armed robbery, kidnapping, homicide and terror-related cases are being tried in a court, security around such court should be fortified to avoid being taken unawares by

Federal High Court Goes Digital, Launches e-Filing Case System Alex Enumah in Abuja

N3.5bn: Federal High Court Upholds Appeal Court’s Decision in Favour of Honeywell Akinwale Akintunde A Federal High Court sitting in Lagos has ruled in favour of Honeywell in a suit it instituted against Ecobank over a N3.5 billion debt suit. Justice Mohamed Idris in his ruling rejected Ecobank’s application urging the court to suspend Honeywell’s suit against the bank. The court stated that it cannot grant Ecobank’s application because the Federal High Court is bound by the final judgment of the Court of Appeal which was delivered on March 30, 2016, directing that the matter be given an accelerated hearing at the Federal High Court. Honeywell had instituted the suit in 2015, praying the court to determine whether or not it

is indebted to Ecobank. But Ecobank in its response challenged the jurisdiction of the Federal High Court to hear the suit. This objection was rejected by the Federal High Court and Justice Idris ruled that the Court indeed had jurisdiction to hear the matter. Dissatisfied with the ruling of Justice Idris, Ecobank appealed this decision at the Court of Appeal but the Appellate Court upheld the decision of Justice Idris of the Federal High Court, stating that it has jurisdiction to hear the suit. The appellate court subsequently dismissed Ecobank’s Application and ordered for the accelerated hearing of the matter before Justice Idris. At the resumed hearing of

the suit before Justice Idris, Ecobank’s counsel informed the court that a notice of appeal challenging the decision of the Court of Appeal had been filed at the Supreme Court. An application for a stay of the execution of the judgment of the Court of Appeal had also been filed at the Court of Appeal. Ecobank therefore requested that the proceedings before Justice Idris be stayed pending the outcome of the application for a stay of execution at the Court of Appeal. But Justice Idris refused Ecobank’s application for a stay and adjourned the matter to July 1, 2016 for parties to report on appeal. At the hearing on July 1, 2016, counsel to Honeywell,

Bode Olanipekun informed the Court that Ecobank’s application for stay of execution was struck out by the Court of Appeal on June 28, 2016 and urged the court for a short date to commence trial. Ecobank’s counsel Mr. Kushimo opposed the application on the ground that the appeal is now before the Supreme Court and urged the court to stay proceedings on the matter. In his short ruling based on the lawyers’ argument, Justice Idris held that Judgment of the Court of Appeal delivered on March 30 remains binding and that Ecobank’s stay of proceedings cannot be granted. He thereafter adjourned the matter till November 2 and 4, 2016 for commencement of trial in the substantive suit.

hoodlums. Adinoyi also tasked Judges to be security conscious and mindful of the kinds of people they receive, places they go, functions they attend and above all, be discreet and prayerful adding that Police orderlies should dress in mufti, though armed. A Judicial officer who preferred anonymity in his own view said that the punishment for kidnapping and unlawful; abduction under the Penal Code and extant laws were inadequate and therefore recommended death penalty for convicted kidnappers. THISDAY reliably gathered that huge sums of money were paid as ransom for the release of the victims. About N15 million was allegedly paid to secure the release of Justice Samuel Obayomi, Resident Judge of Ebogogo High Court. Obayomi was abducted in Okene on May 25th, on his way to the office by a gang of three armed men who also killed his orderly, Cpl Usman Musa on the spot but released the judicial officer on June 27th, 2016 after 34 days in the kidnappers’ cave. Another Judge, Justice Siaka Momoh-Jimoh Usman of the Customary Court of Appeal, Lokoja was abducted on June 12th and equally had his Police orderly, Cpl Tijani Mohammed killed. He was then released on June 14th after an alleged payment of a N10 million ransom. On May 19th, Mr Timothy Salihu, Judge of the Upper Area Court, Idah and Mr Aliyu Okeme, a retired Inspector of Area Courts were abducted at gun-point on Idah-Lokoja road and undisclosed ransoms were paid to secure their release two days later. Mark Ogedengbe, a Legal Practitioner in Liman Salihu and Co chambers, Lokoja, was kidnapped along with a relative on February 20th, between Okene and Ogori-Magongo in Kogi Central Senatorial district and released on February 27th after paying an undisclosed ransom.

The Federal High Court has gone digital following the launch of an automated system of filing cases by litigants and lawyers in its bid to catch up with technological advancements. This initiative will also help in tackling the difficulties with the old system that affects the speedy dispensation of justice. The Chief Judge of the Federal High Court, Justice Ibrahim Auta, during the occasion which was held at the court’s headquarters in Abuja, disclosed that the technology would be adopted by all divisions of the court in the country. Speaking at the launching and demonstration of the system, Auta mentioned that the new system was adopted in line with global best practices for the judiciary. Represented by the Chief Registrar of the court, Mr. Emmanuel Gokko, the Chief Judge, disclosed that the e-filing system was adopted after several visits of the court management to developed countries where the

system has been in use. Expressing confidence in the system, Auta noted that although the system was still at the pilot stage, the undue delay which hitherto affected the speedy dispensation of justice had been removed. The Chief Judge who expressed delight with the launch of the new system, thanked legal practitioners and litigants for their understanding and tolerance during the use of the analogue system of filing before the court. Justice Auta confirmed the effective take-off of the programme, adding that relevant staff had undergone necessary training and that the court had also gone ahead to address issues associated with steady electricity supply. “With this new e-filing system coupled with the treasury single account recently introduced by the Federal Government, those wishing to file cases at the Federal High Court can make payment for doing so in any part of the country", he assured.

05.07.2016

EFCC and Fayose’s Immunity Ntufam Joe Edet

he scandals involving politicians in Nigeria are as commonplace as suya and onions. And Fayose is no stranger to them. In fact, his fresh corruption scandal follows his track record of other allegations against him while in office and out of office. He is not only notorious but easily courts controversies. In the fresh corruption saga which is unfolding between the incumbent Governor and the EFCC, he has slammed the age-old issue of immunity on the table, opening a can of feverish arguments which has gone back and forth on both sides. But for us to come to an accurate conclusion, we must examine where it all began. The concept or doctrine of Immunity is an English doctrine of great antiquity deeply rooted in the old feudal structure of England where no Lord could be sued in the court which he took charge of. Similarly, the King of England who was at the apogee of the hierarchical structure could not be subject to any court within his jurisdiction. Thus under the common law “Just as no Lord could be sued in the court which he held to try the cases of his tenants, so the king…”, at the apex of the feudal pyramid and subject to the jurisdiction of no other court, was not suable. The doctrine was tied to the expression that ‘The King can do no wrong’. In pre-colonial times, the supremacy of the King even in traditional African setting was firmly established. All powers flowed from the king as the supreme organ of the state, thus not only was the king above the law, but was himself the fountain of all laws and authority. It was unthinkable to challenge the king as he himself was the law and the law was the king. It was thus somewhat if not outrightly out of place to subject the king to the rudiments of the law. The doctrine was greatly elevated and encouraged in Britain by the monarchical institutions as the Queen was, and still remains, the symbol of great national unity whose influence transcends partisan rivalry and contest. The office confers sovereignty and allegiance is owed to him or her

personally since he personifies the state in concrete terms. The postage stamps and currency bears her image while the national anthem is God Save the Queen. She is not just the head of Government but the pillar of the established church and an exemplar of their values and virtues. She was therefore expected never to say or do wrong but must always do and say the appropriate things notwithstanding her own personal inclinations. It is the Majesty’s Government and the courts are the Queen’s courts. An American President has nothing of the pomp and pageantry associated with the British Monarch and really does not command such personal allegiance and obsequiousness. He is simply the first citizen of a free nation, “depending for his dignity on no title, no official dues, no insignia of state”. No doubt, there is great respect for the office and a corresponding respect for the holder of the office especially if he has done nothing to degrade it. He is ruled by the spirit of equality which American democracy represents. Thus in the notorious Watergate Scandal case (United States v [U.S President] Richard Nixon), the United State Supreme Court held that the immunity privilege claimed had to be considered ‘in the light of our historic commitment to the rule of law’. Richard Nixon later on resigned as a result of his loss of political support and near certainty of impeachment. Bill Clinton was however impeached on charges of perjury and obstruction of justice by the House of Representatives, though acquitted by the Senate. Truly, no country of the world will deliberately subject its leaders to high-levelled ridicule, opprobrious and ignominious attacks. Thus, the immunity clause is inserted in most constitutions be they written, unwritten, or non-written. Continental France was always cited as one country alongside Britain where immunity was not only applicable but workable. The Court of Cassation, which is one of France’s court of last resort or final appeal, had even ruled that the only time the President could appear before the court was if he committed high treason as part of his official duties. In Philippines Joseph Estrada even pleaded immunity after leaving office, though it was rejected. Estrada was later deposed. So we can see that Fayose is not the first to plead the immunity privilege. Long before him,

the Immunity privilege had been abused severally. In the late Victorian Era of the British, one Miss Mighell sued a certain Mr. Albert Baker for breach of promise of marriage, only for the said Mr. Baker to reveal to the court that he was none other than the Sultan of Johore (a Malaysian state) who had been living in England for a while under a pseudonym or fictitious name. He then pleaded sovereign immunity from the jurisdiction of the court and from prosecution. The Colonial Office on behalf of the crown certified that he was indeed the sovereign ruler of an independent state and the court accepted this as conclusive evidence and Miss Mighell’s action could proceed no further, notwithstanding that the claim of the Sultan of Johore, which was then a British protected state in Malaysia, to be an independent international person was extremely tenuous and questionable. Fayose’s plea is not unfounded though. S. 308 of the Constitution firmly protects and guarantees his immunity notwithstanding what the EFCC and the Falanas of this world would want us to believe. The provision of S. 308 is not novel or strange to our jurisprudence. The 1979 Constitution in its S. 267 and the 1963 Republican constitution in its S. 161 had similar provisions. The position of the law is that no civil or criminal proceeding shall be instituted or continued against the President, his Vice, Governors and their deputies, neither shall they be arrested or imprisoned during the pendency of their tenure in office. Equally, no process of any court requiring or compelling their appearance shall be applied for or issued. In the case of Alamieyeseigha v Yeiwa [2002] 7 NWLR (Pt. 767) 701, the immunity privilege as provided in s.308 was also entrenched and granted judicial imprimatur. Despite the absoluteness of the immunity clause, the late Gani Fawehinmi in Fawehinmi v IGP, sought for and got the courts to rule that the immunity conferred by S. 308 does not confer immunity from police investigation because investigation is a preliminary course of action which may or may not result in criminal proceedings. No doubt the Economic and Financial Crimes Commission (EFCC) Establishment Act 2004 in its S. 34 (1) empowers the anti-graft agency to freeze accounts, this has to be done with a subsisting court order and not arbitrarily. The orders must equally be obtained not from a Magistrate court

Governor Ayodele Fayose

but from a High Court. Justice Kolawole of the Federal High Court, Abuja stated this much when he held in a case with facsimile that it is unlawful to freeze a suspect’s account without a court order. So how did the EFCC obtain their court order against Fayose when Fawehinmi v IGP and Tinubu v IMB Securities Plc all seem to suggest that no court process can be filed against the beneficiary of the immunity clause? It seems the EFCC has made itself a prosecution and a judge in its own case quite contrary to and against the rule of natural justice. The way out of the immunity imbroglio I dare suggest, may be to adopt the South African approach. In South Africa, under the 1994 Constitution the immunity clause can be lifted only through the South African Parliament temporarily. The reason why Jacob Zuma seems to appear and reappear in courts. So perhaps we should be asking for a partial lifting of the immunity clause from the national assembly to allow for thorough investigation and possible prosecution where a prima facie case of money laundering, corrupt enrichment and crimes against humanity is established against the beneficiaries of the immunity privilege. It would certainly spare us the headache and delay in investigating allegations of corruption and bringing erring leader to book. Ntufam Joe Edet is a lawyer and Special Adviser to the Governor of Cross River State

Legal Personality of the Week Deborah Dumebi Chukwuedo

‘The Law is Diverse and Ever Involving’

to become a developer and she is the busiest retiree I know. They never stopped telling us “a good name, and a clear conscience is better than financial gain”.

point not only in my career but also a revelation of my capabilities. It was the day I was informed less than an hour before the Judge came into Court, that I was appearing alone, in a matter that caused unease in the nation’s capital market against a well-respected Senior Advocate of Nigeria before the then Chief Judge of the Federal High Court.

alongside a Senior Associate. As with most Associates, I was generally prepared to just rise and bow to the Court after being introduced by the senior colleague; so I was listening to music on my phone while waiting for my colleague who seemed to be running late. To my bewilderment, he called to say he needed to attend to an emergency. I panicked! What do I say to an SAN! After protesting to no avail, I ran outside, threw up, and called my mum. Eventually with my heart beating so fast, my entire body shaking, my fears trying to stop my brain from working, I paid rapt attention to everything the learned SAN said; and when he used his experience to attempt to confuse me, I reminded the Court that He could only rely on facts referred to in the processes already before the Court. At a point I even sought the protection of the Court! When it was over I could not leave my seat. I thought I was going to pass out. I remember a lady beside me holding my hand to calm me. When I left the Court, the SAN was outside saying his hellos, and as I passed he patted my back. I was too weak to react. We got judgment in our favor, which was good for my confidence, as I had a better appreciation of my abilities as a lawyer. From that day I resolved - never to forget what the Girls’ Scout tried to teach me, which until then never really meant much, “Be Prepared”.

What was your most memorable experience? It was the first time I, a tiny Associate was facing a well-respected Senior Advocate of Nigeria at the Federal High Court. I had done the research and prepared all the court processes with the usual guidance but I was to appear

Who has been most influential in your life? My parents have been the most influential people in my life. My father always ends our conversations with “Work Hard”, and always pushes me to be the best I can be. My mother retired from Lagos State Civil Service

Where do you see yourself in ten years? In ten years in addition to Capital Market and Real Estate Law, I imagine I will be established in more areas of law: Entertainment Law and Mining & Solid Minerals and be an expert in those fields. I also hope to be a respected Arbitrator.

I am Deborah Dumebi Chukwuedo; a Transaction Lawyer and a Co-founder/Partner of Accendolaw, a primarily corporate and commercial law firm in Lagos State. I studied law at the University of Benin and was called to the Nigerian Bar in 2004. I was fortunate to start my career at Punuka Attorneys & Solicitors where I specialised in Capital Markets & Securities Law and Real Estate Law. I also served as the Real Estate Executive at UNIC Insurance Plc, before setting out to found Accendolaw with a former colleague in 2011. I am a passionate lover of Jesus Christ and I love reading not just legal books, but thrillers and autobiographies. I also love listening to music and have recently developed an affinity for fitness.

Have you had any challenges in your career as a lawyer and if so what were the main challenges? The major challenge at this point in my career as a lawyer has is trying to develop the business aspect of the firm; which is why I love the term “Attorney Entrepreneur”. Our training in Nigeria, at least when I was in school, does not include entrepreneurship. Therefore making the move from a lawyer to the founder and Manager of a law firm, without an MBA, required reading a lot of foreign materials and having long one-on-one conversations with any law firm founder who was willing to spare a few minutes on how best to manage and run a law firm. I hope that entrepreneurship, as a module would be added as an elective course in our Universities. What was your worst day as a lawyer? My worst day as a lawyer doubles as my most memorable experience. It was a defining

Deborah Dumebi Chukwuedo

Why did you become a lawyer? Even though I was best at Mathematics, I studied law because I grew up watching Matlock, a legal television series, and I wanted to be like him, without the suits though. I stayed in law practice because it is so diverse and I love being involved in drafting and negotiating transaction documents. I still get the same feeling when working on transactions. What would your advice be to anyone wanting a career in law? Go for it! The law is diverse and ever involving. It has the unique ability to create a sense of tranquility and give you a rush all at the same time. You just have to be ready to do the work! If you had not become a lawyer, what would you have chosen? My best subject in Secondary School was Mathematics - I consistently had A's. I had actually started studying Accountancy at the Yaba Polytechnic. I probably would have been an Accountant if I had a mentor to look up to. I also considered being a Make Up Artist but my father said it was a hobby.

05.07.2016

Human Right to Clean and Safe Water: Promoting Water Justice for Ogoniland’s Nisisioken Ogale Community Alali M. Tamuno “Access to safe water is a fundamental human need and, therefore, a basic human right. Contaminated water jeopardises both the physical and social health of all people. It is an affront to human dignity.” -Kofi Annan, Former United Nations Secretary-General “We can take bold action to address water inequity [or injustice] as part of our efforts to realise the 2030 Agenda for Sustainable Development.” -UN Secretary General Ban Ki-Moon

W Introduction

orld Water Day, which is observed on the 22nd day of March every year, has come and gone. It is a day set aside for people around the world to observe and learn more about issues related to water, “be inspired to tell others and take action to make a difference” (UN-Water, 2016). Although “Water and Jobs” was the theme for World Water Day 2016, this opinion article or note focuses on the theme for World Water Day 2010, Water Quality. In this note, the 2010 World Water Day theme-Water Quality will be discussed in relation to the people who live and work in the Niger Delta Region of Nigeria with special emphasis on the Nisisioken Ogale community in Ogoniland, Niger Delta Region of Nigeria. According to UN-Water, a UN platform established to manage and address issues associated with freshwater and sanitation, the goal of World Water Day is to bring to the attention of people all over the world the importance of freshwater and to advocate “for the sustainable management of freshwater resources” (UN-Water, 2014). The main objective of this note is to remind the international community and the Nigerian government in particular, that the people in the Niger Delta Region of Nigeria, particularly the Nisisioken Ogale community, have a right to clean and safe water, which is vital to their enjoyment of every available human right (UNDESA, 2014). This writer submits that it is environmental and water injustice/ inequity that communities in the Niger Delta Region of Nigeria are exposed to dangerous chemicals in the environment, including surface and groundwater, and the Nisisioken Ogale community to cancer-causing chemicals in drinking water wells, and these communities are not given access to alternative clean and safe water for their drinking and household needs. This writer concurs with others who argue that the right to clean and safe water is essential to the satisfaction of other human rights and this writer suggests that it is critical for the enjoyment of the human rights to life and health. It is noteworthy that the African Charter on Human and Peoples’ Rights (the “African Charter”) recognises, in addition to, a right to life (Article 4), a right to the best possible health (Article 16). Nigeria signed the African Charter on August 31, 1982 and ratified it on June 22, 1983. Additionally, the African Charter has been enacted into Nigerian law by means of the African Charter on Human and Peoples Rights (Ratification and Enforcement) Act Cap A9 LFN 2004. Background The findings from UNEP’s Ogoniland

Environmental Assessment, which fieldwork commenced in or about August 2010, indicates that surface and groundwater in Ogoniland is contaminated with toxic chemicals and in the Nisisioken Ogale community with benzene, a cancercausing chemical. According to the World Health Organization (“WHO”), exposure to “benzene is a well-established cause of cancer in humans. The International Agency for Research on Cancer has classified benzene as carcinogenic to humans (Group 1). Benzene causes acute myeloid leukaemia (acute non-lymphocytic leukaemia), and there is limited evidence that benzene may also cause acute and chronic lymphocytic leukaemia, non-Hodgkin's lymphoma and multiple myeloma” (WHO, 2010). The findings from UNEP’s Environmental Assessment of Ogoniland include the following: In at least 10 Ogoni communities where drinking water is contaminated with high levels of hydrocarbons, public health is seriously threatened, according to the [UNEP] assessment that was released [on August 4, 2011]. (UNEP, 2011) At 41 sites, the hydrocarbon pollution has reached the groundwater at levels in excess of the Nigerian standards as per the EGASPIN legislation. (UNEP, 2011) The five highest concentrations of Total Petroleum Hydrocarbons detected in groundwater exceed 1 million micrograms per liter (ug/l)- compared to the Nigerian standard for groundwater of 600 ug/l. (UNEP, 2011) The surface water throughout the creeks in and surrounding Ogoniland contain hydrocarbons. Floating layers of oil vary from thick black oil to thin sheens. (UNEP, 2011) Ogoni Community is exposed to petroleum hydrocarbons in outdoor air and drinking water, sometimes at elevated concentrations. (UNEP, 2011) Hydrocarbon contamination was found in water taken from 28 wells at 10 communities adjacent to contaminated sites. At seven wells the samples were at least 1,000 times higher than the Nigerian drinking water standard of 3 ug/l. Local communities are aware of the pollution and its dangers but state they continue to use the water for drinking, bathing, washing and cooking as they have no alternative (emphasis added). (UNEP, 2011) Of most immediate concern, community members at Nisisioken Ogale are drinking water from wells that is [sic] contaminated with benzene, a known carcinogen, at levels over 900 times above the World Health Organization (WHO) Guideline. The [UNEP] report states that this contamination warrants emergency action ahead of all other remediation efforts (emphasis added). (UNEP, 2011) Argument The enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition” (WHO, 1946). “Everyone has a right to a standard of living adequate for the health and well-being of himself and of his family…” (Universal Declaration of Human RightsArticle 25, 1948). In 2010, the United Nations General Assembly-UNGA Resolution 64/292 (July 28, 2010)) affirmed a right to safe drinking water as a human right “that is essential for the full enjoyment of life and [other] human rights” (UNGA, 2010). In 2012, the United Nations Conference on Sustainable Development approved

an “outcome document-“The future we want”, which reaffirmed the right to water (Paragraph 121) and emphasised the importance of “reducing, inter-alia, air, water, and chemical pollution” to enable “positive effects on health” (United Nations Conference on Sustainable Development: Outcome Document-The future we want, Paragraph 141). As stated earlier, this writer argues that the right to clean and safe drinking water extends to the Nisisioken Ogale Community in the Niger Delta Region of Nigeria and all the communities in the Niger Delta Region that have their environment, including surface and groundwater, contaminated with substances hazardous to their health and well-being. The sustainable development goal for water and sanitation provides in part that “[b]y 2030, achieve universal and equitable access to safe and affordable drinking water for all” (Agenda 2030 Sustainable Development Goal 6.1). “The sustainable development goal for water and sanitation further requires that ‘[b]y 2030, improve water quality by reducing pollution, eliminating dumping and minimising release of hazardous chemicals and materials…..” (Agenda 2030 Sustainable Development Goal 6.3). Goal 6 of Agenda 2030 Sustainable Development Goals supports water justice and this writer submits it extends to the people in the Niger Delta Region of Nigeria, in particular the Nisisioken Ogale community, where people are exposed to cancer-causing chemicals in drinking water. Recommendations The Nigerian government and its international partners should consider “time to be of the essence” in promoting the right to clean and safe drinking water and sanitation and ensuring water justice for the people in the Niger Delta Region of Nigeria and in particular the Nisisioken Ogale community. This note recommends more emergency intervention measures beyond UNEP’s recommendations to ensure the right to safe and clean drinking water and water justice for the people in the Niger Delta Region of Nigeria, especially the Nisisioken Ogale community as follows: The Nigerian government should develop and implement emergency Interim Remedial Measures (IRMs) for the geographic location that comprises the Nisisioken Ogale community and/ or create a separate Operable Unit or Units (separate from the overall cleanup of Ogoniland) for the immediate development and implementation of the technical recommendations and/or remedial

program set forth in UNEP’s 2011 Report of its Ogoniland Environmental Assessment in relation to the Nisisioken Ogale community. The IRMs should comprise but not be limited to the immediate identification and proper decommissioning of all the impacted drinking water wells in Nisisoken Ogale community in order to prevent the people in the community from drinking and using contaminated water. Additionally, the Nigerian government and its international partners and oil and other related companies in Nigeria responsible for the contamination in the Niger Delta Region (joint, several and strict liability for responsible parties) should provide filtered and/or bottled water to communities in the Niger Delta Region that have their sources of water contaminated with dangerous chemicals, particularly the Nisisioken Ogale community. Ensure water justice for the Nisisioken Ogale community with the development of a comprehensive Citizen Participation Plan to ensure that the people in the Nisisioken Ogale community actively participate in the environmental decision-making process, have access to information with respect to the proposed environmental cleanup plan for their community and to health studies regarding benzene exposure and access to justice by developing legislation in Nigeria that allows citizen suits to enforce environmental laws in Nigeria. Immediately commence site characterisation for oil spill and hazardous substances response and hazardous waste site cleanups in other local government areas in River State Nigeria, particularly the Okrika local government area, and other areas that comprise the Niger Delta Region of Nigeria using multiple Operable Units to commence the identification and remediation of such contaminated sites. To promote adequate and “effective management, flexibility in, and streamlining” of the, environmental cleanup program in the Niger Delta Region as a whole and Nisisioken Ogale community in particular, the Nigerian government and its international partners should consider the appropriateness of Triad project planning Approaches and tools for the environmental cleanup of Ogoniland, especially the Nisisoken Ogale community, and throughout the Niger Delta Region “to ensure high decision confidence and stakeholder satisfaction” (USEPA, 2015). Verbum Sat Sapienti, “a word is sufficient for the wise.” Alali M. Tamuno, S.J.D., Esq., Senior Attorney, Office of General Counsel, Remediation Bureau, New York State Department of Environmental Conservation, White Plains, New York.

05.07.2016

Why the Federal High Court Cannot Remove Ikpeazu as Governor of Abia State Ebun-Olu Adegboruwa

n Monday, June 27, 2016, the country was again shocked by the news of the judgment of the Federal High Court, Abuja, sacking the Governor of Abia State, Mr. Okezie Ikpeazu. From the reports, it was stated that Governor Ikpeazu does not possess the requisite qualifications to contest the election as governor, in that he did not furnish credible evidence of payment of tax, to the Abia State Government. Accordingly, the court directed the Independent National Electoral Commission to issue a certificate of return to Mr. John Ogah, the candidate who came second in the Peoples’ Democratic Party’s governorship primary. This judgment is said to be predicated on section 24 (1) (f) of the 1999 Constitution and the Electoral Act. According to the court, the governor did not qualify to contest the election ab initio and PDP was wrong to have presented him as a candidate. On these grounds, he was asked to surrender his mandate to Mr. Ogah. With all due respect to the court, this judgment is wrong, both in law and morality. Straight away it should not be difficult to know that the qualifications for candidates seeking the office of governor of a state are as stipulated under section 182 (1) of the 1999 Constitution as follows: A. Dual Citizenship; B. Two previous terms in office; C. A person adjudged to be a lunatic or of unsound mind; D. Conviction by court or tribunal for death or an offence involving dishonesty or fraud; E. Conviction within ten years of contest for dishonesty or contravention of the Code of Conduct; F. Failure to retire from public service; G. Membership of a secret society; H. Indictment for embezzlement or fraud; or I. Candidate has presented a forged certificate to INEC. In respect of section 182 (1) (i) relating to forged certificates, it must be that the alleged forgery must have been authenticated by the relevant hand writing analysis experts of the Nigeria Police Force and must be shown to have been masterminded by the governor himself. Clearly therefore, the issue of payment or non payment of tax, cannot invalidate an otherwise valid election. Furthermore, the consequences of a failure, by any public officer, to pay tax, are well articulated in the various tax statutes. In this case, it is said that one of the documents furnished by the governor was said to have been forged because it was issued on a Saturday. Under the Public Holiday’s Act, all days are working days except the ones specifically declared as public holiday. Indeed section 1 of the said Act states public holidays as New Year’s Day, Good Friday, Easter Monday, Workers’ Day, National Day, Christmas Day, Id el Fitr, Id el Kabir, Id el Maulud or any other day so declared by the President or Governor. So, Saturday and Sunday are not public holidays to nullify official acts done on those days. This was why the former governor of Lagos State, Babatunde Fashola, a Senior Advocate of Nigeria, signed the appropriation bill of Lagos State on a Sunday. So the fact that a document is signed and dated on a Saturday or Sunday, does not of itself alone, render it invalid. In any case, any mistake occurring upon a document issued by the Abia State Government, cannot be blamed on the beneficiary of

Okezie Ikpeazu

Uche Ogah

the document itself. The issue of tax evasion or tax default is a matter to be resolved between the citizen and the government, being one affecting revenue. I cannot see how that can lead to the annulment of the votes lawfully cast by the people of Abia State, for their choice of governor. Section 24 (1) (f) of the 1999 Constitution, which enjoins citizens to pay tax, is part and parcel of Chapter 2 of the 1999 Constitution, under the directive principles of state policy. The chapter is a policy statement, for both the government and the citizens and thus, they are not meant to be enforced by any court. This is clearly stated in section 6 (6) (c) of the Constitution, directly dealing with the powers of the courts. Section 24 (1) (f) is therefore non justiciable and cannot be the basis of nullifying the election of any public officer. It is clearly unenforceable and cannot form the basis of the judgment of any court created under the Constitution. The other point that makes the judgment totally unacceptable is that it is totally against the tenets of democracy and the rule of choice, for courts to be supplanting public office holders that have been conferred with a sacred mandate by the people. This is why matters relating to elections have been limited to election petitions, so that it is only those who canvassed for the votes of the people that should expect to enjoy their mandate. The courts should not be imposing leaders on the people, to annul their mandate, through judgments that have no bearing with and cannot be traced to the votes cast. Furthermore, this is a case that has been fought and won, even up to the highest court of the land, the Supreme Court. So if one may ask, where was Mr. Ogah, in all of the time that the governorship election of Abia State was in the tribunal, in the Court of Appeal and in the Supreme Court? Was it today that he got to know of the forged certificate? How will a High Court turn around to annul a mandate already confirmed by the Court of Appeal and the Supreme Court, the latter being the highest court of the land? Presumably, the people of Abia State will be losers in this contest. Investment decisions will be placed on hold,

there will now be some kind of uncertainty in policy decisions of the State, until the case is finally decided by the Supreme Court. It is a needless distraction for governance, the State having gone through the rigours of an election petition, up to the Supreme Court. The worrisome part of this whole drama is the sentiment gaining ground that this may just be the clandestine ploy of the ruling party to entrench a one party state, as it is already being speculated that upon his swearing-in, Mr Ogah will immediately defect to the ruling APC, citing the present factionalisation between Modu Sheriff and Ahmed Markafi. Surely this cannot help our democracy, and it is gratifying that it is all a matter of speculation and conjecture. We must get to a stage when we must give due respect and honour to the wish of the people as expressed during the election. Section 221 of the Constitution gives the electoral mandate to both the political party and the candidate, such that when the people have exercised their vote for a particular candidate as their choice of leader, such must not be removed through the backdoor under the guise of post election litigation. It is totally unacceptable, as that will become a form of judicial terrorism, for the court to sit over an election conducted over a year ago, to be annulling it, in the name of a judicial exercise. The judge in this case must be leveraging on the Supreme Court’s decision in Amaechi’s case, whereby Celestine Omehia was asked to surrender his mandate to Rotimi Amaechi, as governor of Rivers State. The difference in the two cases is that Amaechi won the PDP governorship primary fair and square, unlike in this case, where Ogar came second, behind Ikpeazu. So Ogar was not the choice of the party and he was not the choice of the people of Abia State and so he cannot be the choice of the court, against the wish of Abia people. I trust that in no time, the appellate courts will correct this judicial anomaly and restore the mandate of the people of Abia State, to its rightful owner. Ebun-Olu Adegboruwa, is a legal practitioner and human rights activist

Clergyman Asks Court to Dismiss N22m Suit Filed against Him Akinwale Akintunde A Lagos High Court sitting in Igbosere has been urged to dismiss a N22 million suit filed by Miss Tamara Egbedi against a clergyman, Rev. Dr. Chris Kwakpovwe over her broken teeth. The clergyman, in the application filed through his lawyer, Anthony Mukoro before Justice Samuel Candide-Johnson stated that the claimant is a gold digger, who is just trying extort him. Miss Egbedi, a lawyer in the Aelex law firm, Ikoyi Lagos had instituted the suit No. LD/359/2011 and joined the Registered Trustees of the Chapel of Liberty also known as the Voice of Liberty Ministries with the clergyman who is also the publisher of Our Daily Manna, as defendants. She asked the court to award damages for the dental injury sustained by her during a fast anointing service organised by the church at the National Stadium in the following sum: N1, 454, 000 being special damages, N20,000,000 being general damages and N1,000,000 being the cost of completing her

medical treatment when she fell into a gutter during the programme. However, Dr. Kwakpovwe, a pharmacist, in his statement of defence had told the court that the claimant might have conspired with others to obtain money from him taking advantage of the benevolence of the church towards acts of charity. The defendant stated that about 12,000-15, 000 people came for the crusade programme which was held at the Indoor Sports Hall of the National Stadium for the first time and that there was an arrangement for controlled outside sitting for example for nursing mothers, the sick and it was well organised. “As the service ended, she came to me and said she must see me or else she will die as people were trying to stop her from reaching me, I asked them to allow her come and as I was going to lay my hands on her to pray with her, she said: “don’t touch me, I didn’t come for prayer, I want you to see my mouth. I have a matter I want you to settle, my lawyers are waiting, don’t touch me”, he stated.

The clergy man further stated that he was told then, that she had an injury but quickly added that it was possible that she came from a night club called OJ club which was within the radius of the stadium where there was a fight that night. In her statement, the claimant stated that sometime in December 2009, she purchased a copy of the January-March 2010 edition of Our Daily Manna and in the said publication; the defendants informed readers that they were organising a 21-day fast for the New Year commencing on January 2, 2010 and ending on January 22, 2010. At page 35 of the publication, readers were invited by the defendants to attend the end of fast anointing service scheduled to hold at the National Stadium Complex, Surulere, Lagos on January 22, 2010. According to her, based on the aforementioned invitation, she attended the end of fast anointing service in the company of her sister, Miss Ebiere Egbedi and her cousin, Miss Bomiya Clark. Justice Candide-Johnson adjourned the matter till October 17, 2016 for ruling.

8/COVER

05.07.2016

NBA-SBL Conference Tackles Law Reform and Economic Development The NBA-SBL organised its 10th Annual Conference with the theme “Law Reform and Economic Development”. The event drew the attention of several top government officials, judges, lawyers and Industry leaders. Tobi Soniyi who attended the 10th Annual Business Law Conference of the Nigerian Bar Association Section on Business Law Reports

Vice President, Professor Yemi Osinbajo SAN and SBL Chairman, Mr. Asue Ighodalo

he NBA SBL Conference presents a rare opportunity for lawyers engaged in corporate and commercial law practice to become abreast of emerging trends in the business world. It also provides a forum for interaction with top government officials and industry leaders. The conference attracted some of the best authorities in corporate and commercial law practice. The resource persons were extremely qualified with intimidating credentials. It was definitely worth its registration fee. The theme, Law Reform and Economic Development allowed regulators, lawyers and business executives engage in meaningful discourse on policies and regulations that shape economic growth. In his welcome address, the Chairman of the SBL Conference Planning Committee Dr. Babatunde Ajibade, SAN set the tone for the conference when he asserted that: "There is no gainsaying the fact that these are tough economic times for the Nigerian nation and a time when all hands must be on deck if we are to turn our economy around." He noted that Nigeria was paying the price for relying solely on oil revenues as a source of economic development. According to him, the fall in oil price has exposed the nation to the dangers of being solely dependent on oil and is forcing Nigeria to take the issue of diversification very serious. This scenario, he said informed the decision to choose conference sessions that focussed on the key drivers of diversification and development of the economy. Apart from focusing on how to diversify the economy, there were sessions that focussed on reforming the necessary laws to make it easier to do business in Nigeria. SBL Chairman, Mr. Asue Ighodalo explained the

choice of the conference theme thus: "We settled on this theme to re-emphasise that law reform begets rapid economic development, effective resource allocation, employment, attraction of appropriate investment, economic diversification and security." Reforming the laws and make them fit for purposes, he said, required a collective effort. "Archaic, restrictive and retrogressive laws must be repealed or appropriately reviewed to ensure an enabling business environment which supports sustainable economic development", he added. According to the NBA President, Augustine Alegeh, SAN, the conference could not have come at a better time than now when Nigeria is focusing on how to resuscitate several comatose sectors of the economy and diversify the economy. The Vice President, Professor Yemi Osinbajo, SAN who delivered the keynote address and declared the conference open took advantage of the opportunity to warn that the passage of the Petroleum Industry Bill would not cure all the ills afflicting the oil sector. He stated that there were more pressing problems in the oil and gas industry. While responding to Alegeh's concern over the non-passage of the PIB by the National Assembly in the last 14 years, Osinbajo explained that the problems in the oil industry were not necessarily legislative issues but the nature and structure of the nation’s joint ventures as well as the fairness or otherwise of the agreements between the joint venture partners. He stated that: “What seems to be the problem for us today, really is more of how our joint ventures are structured, especially our cash core deficit and how to address those cash core deficit. “However you choose to write the PIB, it must still be the case that you must find a way of resolving questions around who pays for our own portion of the joint venture.

“Over time, we have somehow found a way of not paying, so there is a huge backlog. “But aside that, there is a question around Production Sharing Contracts and whether those PSCs should be framed the way they are. And these are not necessarily legislative issues. “They are more issues around agreements and how agreements are drawn up or and whether the agreements are fair or not fair. “I think for us really, the major problems today revolve around the questions how the agreements we have entered into are wrongly entered; how those joint ventures are wrong; how those PSCs are wrong and what we need to be doing moving forward. The Chief Justice of Nigeria, Justice Mahmud Mohammed, who was represented by another Justice of Nigeria, Justice Sylvester Ngwuta, mentioned that legal reforms must be set in motion to address the nation’s problems. He called on lawyers to act as agents of changes and be ready to fulfil their calling in helping the nation to confront many of its current challenges. The general consensus opinion is that some of the laws under which businesses operate are far from conducive. Many of our laws are not just archaic they also act as disincentives to economic growth. At the session on “ Law Reform and Economic Development” participants agreed that there is a nexus between law reform and economic development and that Nigeria has failed to live up to the expectation of business in terms of law reform. While countries such as Great Britain keep on amending their laws to respond to necessity of modern businesses, Nigeria has retained old laws including some inherited from the colonialist. Chaired by Mr. Fola Adeola of Fate Foundation, those who attended the session benefited from the presentation of speakers such as Senator Oladipo Odujirin a Senior Partner

at Odujirin and Adefulu, Mr. Kefas Magaji, the Acting Chairman of the Nigerian Law Reform Commission, Dr. Jumoke Oduwole, the Senior Special Assistant to the President on Industry, Trade and Investment, Office of the Vice President and Dr Gerald Tanyi, a Chief Counsel at the International Finance Corporation. In his presentation, Tanyi stressed the need for a "deliberately crafted legal and institutional framework (including laws, regulations and policies) designed to jump-start economic development". But with the benefit of hindsight he warned that a modern business legal framework would not be enough. Senator Odujinrin identified the challenges in the law making process including the lack of communication between the executive and the legislative arms of government as well as a lack of consistency at the National Assembly. He suggested the establishment of a Federal Legislative Clearing House system. Mr. Kefas stated that the law reform commission had indeed identified laws that should be amended or outrightly repealed but observed that the draft laws were not getting the desired attention. The session on Managing Nigeria's Economy-Is there a need for institutional reforms was chaired by Mr. Gbenga Oyebode, the Managing Partner of Aluko and Oyebode and had the Minister for Finance, Mrs. Kemi Adeosun as speaker. Members of the panellists include, Dr. Alex Otti, former Managing Director of Diamond Bank Plc, Mrs. Peju Adebanjo, Managing Director, Project Management, Lafarge Africa Plc, Dr. Doyin Salami of the Lagos Business School and Mr. Segun Ogunsanya, Managing Director, Bharti Airtel. Otti argued that there was an urgent need to reduce the cost of governance he stated that a government of 109 Senators, 306 members of the House of Representatives, 774 Local Government

05.07.2016 Areas with council members and 980 State House of Assembly members of average 27 members per state, was not sustainable. He also addressed the issue of the ease of doing business. Among 189 countries, Nigeria is ranked number 169. Otti noted that: "Clearing goods at the sea ports in Nigeria takes 20 days, in Benin it takes 5 days while in Mauritius and Singapore it will take 2 days and one day respectively. In Botswana, it takes 7 hours." He also stated that the time and cost of starting and running a business in Nigeria remained discouragingly high. He cited the recurrent problems of multiple taxation, policy inconsistency and the slow judicial process. When the challenge of providing security is added to these, no one is left in doubt of the fact that despite its large population, Nigeria is not competitive when it comes to attracting businesses. At a time when the Federal Government does not have enough resources to allocate to states, The Minister of Finance stated that most states of the federation lacked tax space for private investors, for them to generate reasonable Internally Generated Revenue (IGR), to fund the states. She described how the states could generate more funds, rather than relying on the Federal Government for bail out funds. While fielding questions during the session, Adeosun also pointed out that the Federal Government is adopting fiscal sustainability plan to resolve some of the outstanding salaries owed workers nationwide. On why the government has not been partnering with Nigerians in diaspora, she stated that there should be a natural relationship with the Nigerians in diaspora and Nigerians at home, but added that government still has to improve the business environment, alongside its unwavering fight against corruption. "It is Nigerian investors first that draw in foreign investors and diasporans, if we Nigerians cannot make ourselves invest, how can we bring in foreigners to invest in Nigeria? On the policy framework being adopted by the present administration, she admitted that the government had not been good with communication, but that it was proactive towards diversification of the economy and fight against corruption. The consensus at this session was that the Company and Allied Matters Act CAMA is no longer serving the needs of the business community. The session comprised of experienced people such as Professor G.A. Olawoyin, SAN who chaired it, Dr. Gbolahan Elias (Speaker) and Alex Mouka (Moderator). The panellists included Professor, Joseph Abugu of the Faculty of Law, University of Lagos, Mr Bello Mahmud, the Registrar General of the Corporate Affiars Commission and Ms Angela Omo-Dare, the Head, Country Legal Services at Stanbic IBTC holdings Plc Elias identified many redundant provisions of the CAMA and suggested they be expunged. Interestingly, he received support from the Registrar-General of the Corporate Affairs Commission who stated that the CAC had also compiled areas that needed to be amended. According to Elias, CAMA is now nearly 30 years old. He noted that: "In some respects, it was already dated at the time it was passed. It was based on pre-1985 English Law. "Since then, English Law has already enjoyed several sets of major reforms some of which include share buy back and financial assistance now being restricted to public companies." While supporting Elias's position, the CAC Registrar General, Mahmud explained that: "The passage of time and development in both the Nigerian and global economies have made some of the provisions of the Act impracticable and inadequate to meet current challenges in companies' administration and regulation." All the participants agreed. He proposed at least eighteen provisions of CAMA which he said would simplify business registration, regulation and administration in the country. One of those areas is the provision requiring two or more people to form a private company. He suggested that this be amended to allow one person to form a private company. In his view, this "will encourage the migration of micros, small and medium enterprises from the informal sector to the formal sector so that they can be fully integrated into the economy." Mahmud also stated that this would reduce conflicts and wrangling amongst shareholders arising from distrust and mutual suspicion. He cited UK, Hong Kong, New Zealand and South Africa among jurisdiction that had adopted this option. Professor Abugu could not understand why small companies should be burdened with filing annual returns. Others who spoke on the issue stated that it would be preferable for states to be given powers to register companies. Hardly can any discussion about the Nigerian economy be concluded without reference to the oil and gas sector because of the role the sector plays in the development of the country. Former NBA President Olisa Agbakoba, SAN chaired the session while the Minister of State for Petroleum, Dr. Ibe Kachikwu was the speaker. The session was moderated by Mr Ola Alokolaro while panellists included Mr. Ken Etim, Managing Partner, Banwo and Ighodalo, Mr. O.A. Avuru, Chief Executive Officer, Seplat Petroleum Plc, Mr. Tunji Mayaki, Deputy Managing Director, Addax Petroleum Development (Nigeria,) Limited and Mr. Demola Adeyemi-Bero, Managing Director, First Exploration and Production Limited Despite the gloomy outlook for the oil and gas industry, Kachikwu was optimistic that the future remained bright and had rewarding prospects. Nevertheless, he conceded that the environment remained challenging. He listed some of the critical challenges facing the industry which include transparency, income leakages for government, policy somersaults and inconsistencies, global market uncertainties and loss of global market share. The Minister reassured that this present administration would deepen transparency in the sector and appeal to stakeholders to give the government a chance. Participants at the session made a case for the PIB to be passed into law to open up more opportunities.

COVER/9

Minister of Power, Works & Housing, Mr. Babatunde Fashola SAN

The session discussed the weaknesses in the Arbitration and Conciliation Act as a vehicle for the resolution of commercial disputes. Former Attorney General of the Federation and Minister for Justice and an expert in arbitration, Chief Bayo Ojo, SAN chaired the session while another arbitrator, Mr. Yemi Candide-Johnson, SAN was the speaker. This session had Hon. Justice Peter Affen of the FCT High Court, Mr. Babatunde Fagbohunlu, SAN, Mrs. Doyin Rhodes-Vivour and Mr. Jerome Finns as panellists with Mr. Isaiah Bozimo as Moderator. One of the critical sessions was devoted to exploring how Nigeria can improve its rank in World Bank's rank of ease of doing business. As it is now, the country is not competitive at all. Filippo Amato, Trade Counsellor, Head of the Trade Economic Section, European Union Delegation and ECOWAS stated that Nigeria had no choice but to improve its rank especially in the face of falling oil prices. He explained that with Boko Haram still not entirely neutralised in the North East, the militancy in the Niger Delta and the menace of the Fulani herdsmen, the odds against Nigeria when investors are considering an investment destination are many. There are enough factors to discourage investors. It can only get worse when avoidable bureaucratic barriers are added to these. He mentioned that: "At the EU Delegation, we often get enquiries from European companies about perception of the business environment: Are there clear, predictable and stable rules? Will contracts entered into be respected? In cases of disputes, can an effective legal redress be sought? Are there bottlenecks that will hinder access to capital or access to foreign exchange? Is security improving in the country? Those in authorities would be well advised to pay attention to these questions Amato expressed delight at the fact that the incumbent administration had established a Presidential Commission on Ease of Doing Business, co-chaired by the Vice President and the Minister of Industry, Trade and Investment. Amato further stated that: "However, when I heard about the commission, I wondered whether and how it will interact with the National Competitiveness Council of Nigeria, a public-private sector body established under the previous administration." He noted that Nigeria performed below Sub-Saharan Africa in all Doing Business indicators relating to trading across borders. According to him, no progress was recorded year-on- year. "The large size of the Nigerian market, which should in principle be an advantage, may be one of the reasons why Nigeria has not made progress in this indicator. He stated insightfully "Nigeria is too inward-looking. Since the Nigerian market is so large, there is a tendency to believe that, to build a successful business, it is sufficient to serve domestic demand and to be protected from competition, mostly coming from outside. But in a global world, this inward-looking and projectionist attitude can only produce inefficiencies and affect competitiveness." In this session on “Promoting Commercial Agriculture As An Imperative -What is required to awaken this sleeping giant?”, which was chaired by the Minister for Agriculture, Chief Audu Ogbeh, factors that could help Nigeria transit from subsistence farming to commercial agriculture were considered. An expert in land law, Professor Imran Oluwole Smith, SAN was the speaker while Mrs. Onyinkan Badejo-Okusanya moderated the session. In his presentation, Mr Kenyon Dashiell, the Deputy Director -General, International Institute of Tropical Agriculture, Ibadan, noted that farming had been restricted to the rural poor who could not use their farmland to access loans. As a result of this, yields and income are very low while farming remained unattractive. More so, the country was unable to produce sufficient food while Nigerians developed an unseemingly unquenchable appetite for imported food. To reverse this trend, he advised government to make; land acquisition and registration easy; Access to credit facilities possible; and create easy access to farming inputs among others. If Nigeria is able to do this, he was confident that the country would be able to generate employment opportunities and become self sufficient in food production and may be able to export food. Apart from agriculture, Nigeria is shifting its focus to solid minerals to diversify its economy. The session titled “Nigeria’s

Solid Minerals As a Source of Economic Development-tapping a latent resource” dealt with the expectations that had been built up around Nigeria's acclaimed rich endowment in solid minerals. The session was chaired by the Minister of Solid Minerals, Dr Kayode Fayemi while Mr. Supo Shasore, SAN was the speaker. This session was moderated by Mrs. May Agbamuche-Mbu and had Ms. Nere Teriba, Mr. David Ofosu-Dorte, Mr. Rasheed Olaoluwa and Mr. Dapo Akinosun as panellists. Mr. Shasore noted that the reality of the recent trend of low oil prices and its impact on the revenue and foreign reserves of the country meant that it had never been more imperative for Nigeria to protect herself by diversifying her revenue streams. However, developing the solid minerals sector would not be easy as the sector, he noted remained plagued with issues ranging from inadequate infrastructure to illegal artisanal mining and community challenges. Consequently, potential investors were deterred. He came up with a time line for actions that must be taken if developing this critical sector must become a reality the first of which is to launch the roadmap and begin a communication campaign to generate industry buy in. Without power, every developmental plan no matter how well drafted, will fall into pieces. The session on power titled –“When will the lights come on?” addressed issues surrounding the power sector. It is another critical area that has crippled businesses and stifled development. The session examined progress made so far in the sector through various reforms introduced by previous and present administration. Kaduna State Governor, Mallam Nasir el Rufai chaired the session while a former Minister for Power, Dr Lanre Babalola was the speaker. The session was moderated by the Mr Mohammed Mijindadi, the Managing Director of Gas Power Systems (Nigeria) GE. The session titled the “Vision for Nigeria's Infrastructure Development-What do we need to get there?” deliberated on the challenges faced by Nigeria and other developing African countries in bridging the infrastructure gap that presently existed in this part of the world. In his remarks, Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola blamed the poor state of infrastructure in Nigeria on the bad choices that the country made in the past. These poor choices, according to him, manifested in the form of meagre budgetary allocations to the critical sectors of power, works and housing by past administrations as well as a non-release of funds even after budgets had been passed. “We’ve been through a decade of daily production and sale of crude oil at $100 per barrel and all of us know some of the things that happened during that period. But what has changed? What has changed is that with a budget benchmark of $38 per barrel, this administration has budgeted more than N4 trillion; we have budgeted N6 trillion,” he noted. “For me, it is a start, and it is an audacious start, the type that is needed in difficult economic times. It is reminiscent of what has been done all through history when economies were at difficult crossroads like this. It is reminiscent of the New Deal in America, it is reminiscent of the Marshall Plan in Europe, and it is also reminiscent of what China has done for a decade and a half to build its economy,” he added. The Minister observed that apart from the size of the budget, what had happened also was that 30 percent of the 2016 budget has been dedicated to capital expenditure to finance infrastructure. Not afraid to tackle critics, Fashola stated that people who asked why the country was going to borrow but at the same time asked for new roads were not being sincere. “In the context that we are not earning enough money, we must borrow to finance infrastructure, it is a sensible investment, the amortisation period is longer,” he explained. Fashola also drew a comparison between past budgetary allocations and this year’s allocation in order to highlight that things were changing for good. “This year the Ministry of Power has N66 billion to spend to complete its transmission projects. In Works, for roads and infrastructure we now have N244 billion, and in Housing, we have N35 billion in the 2016 budget. So for those three ministries we have N345 billion to spend,” he said. “So instead of N66 billion this year, Power had only N5 billion to spend in the 2015 budget for the whole of Nigeria. We know how much has been found in banks and under all sorts of places. That is why we don’t have infrastructure. It’s very simple, we just made poor choices. Works had N18 billion for all of Nigeria’s roads and bridges last year, whereas money was being hidden here and there. Those are the poor choices that we made. "And of course for Housing, we had N1.8 billion to build houses for the whole of Nigeria. That gives a total of about N34 billion compared to about N345 billion that this administration is willing to commit,” he added. The Minister stated that his meetings with contractors in Works and Housing preparatory to implementation of the 2016 budget revealed that they had not been paid for two to three years in spite of the budget, adding that what happened then was that after the budgets were made, cash was not released. He added that all that was changing currently, contractors were being paid and they were returning to site, and even where they had not been paid, they were going back to work based on the integrity of the Buhari administration knowing that they would be paid. Conclusion It was not just work at the SBL Conference. As busy as these sessions were, the organisers managed to blend the sessions with opportunities to network. There was a cocktail party at Jabi Lake with the theme "African Night at the Lake". Participants were also entertained at the end of the conference with Olamide, one of Nigeria's popular contemporary artistes performing. For those who missed the opportunity to attend this year's conference, they will be well advised to start saving for the next conference.

10/

05.07.2016

Tribunal Bias in African Arbitrations Harry Matovu

not follow that they are similarly applicable in African arbitrations or arbitrations in any other jurisdictions which have different cultures and traditions.

H Introduction

ow is international arbitration to be developed in Africa? London and Paris continue to be the most favoured arbitral seats, even in relation to African disputes. If leading arbitral institutions are serious about promoting arbitration in Africa, they must show a commitment to the development of a larger body of quality arbitrators from the continent. Commonly accepted rules and guidelines regarding the selection of arbitral tribunals and tribunal bias must have regard to the cultural norms, values and structures of African societies, as well as the conditions and realities of the legal market in Africa. Courts and arbitral institutions which supervise or examine issues of the conduct of arbitrations and ‘due process’ should be aware of such cultural norms and values if challenges to arbitral appointments and awards are to be determined properly and the arbitration market in Africa is to develop to its full potential. This is not to suggest that they should ignore or dilute the fundamental requirement of tribunal impartiality. This is an overriding requirement, to which the principle of party autonomy and any wider aims of capacity building must always yield. What is required is a properly informed approach to the issue of impartiality in an African context. Tribunal Bias: General Principles Article 12(2) of the UNCITRAL Model Law on International Commercial Arbitration (“the Model Law”) has been incorporated or echoed in several national arbitration codes. It states: “An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to his impartiality or independence, or if he does not possess qualifications agreed to by the parties...” What are “justifiable doubts” in this context? Several common-law jurisdictions have developed case-law in this area. I shall focus on the English authorities because (1) this is the body of case-law with which I am most familiar, and (2) even if they do not entirely reflect the way in which the law has developed in other jurisdictions, the discussion in these cases is illuminating. English Authorities The classic exposition of the principle of apparent bias in English law appears in the House of Lords case of Porter v Magill. [2002] 2 AC 357. The test is “whether the fair-minded and informed observer, having considered the relevant facts, would conclude that there was a real possibility that the tribunal was biased.” The test is whether there is a possibility, not a probability, of bias. Furthermore, the issue is not confined to a real possibility or likelihood of conscious bias. The threshold is “a real possibility of unconscious bias” in the mind of the tribunal. In R v Gough, it was observed that “bias is such an insidious thing that, even though a person may in good faith believe that he was acting impartially, his mind may unconsciously be affected by bias.” So a statement or assurance by the tribunal that it has not been, or is unlikely to be, unduly influenced or biased in its determination of a dispute is of little value. “It is no answer for the judge to say that he is in fact impartial and that he will abide by his judicial oath. The purpose of the disqualification is to preserve the administration of justice from any suspicion of partiality.” The English authorities also make it clear that, if there is any real doubt as to whether a tribunal might be biased (whether consciously or unconsciously), that doubt should be resolved in favour of recusal, because “in any case where the impartiality of a judge is in question, the appearance of the matter is just as important as the reality”. On the other hand, the English courts have also emphasised the need for robustness in assessing claims of apparent bias. Judges and arbitrators are appointed and expected to decide disputes, not to be over-eager to succumb to self-interested arguments by one of the parties that they should be removed from a case. As Sedley LJ observed in Bennett v London Borough of Southwark: [2002] EWCA Civ 223 “Courts and tribunals do need to have broad backs, especially in a time when some litigants and their representatives are well aware that to provoke actual or ostensible bias against themselves can achieve what an application for adjournment

cannot. Courts and tribunals must be careful to resist such manipulation, not only where it is plainly intentional but equally where the effect of what is said to them, however blind the speaker is to its consequences, will be indistinguishable from the effect of manipulation.” Ward LJ added: “I do not deny that it is thoroughly unpleasant and uncomfortable to be accused of bias. It is, sadly, not an uncommon charge. It is, on the contrary, a worryingly increasing challenge to the court's authority at all levels. Judges, members of tribunals, magistrates, all have to rise above such a challenge because all must be confident in their ability to judge impartially.” IBA Guidelines on Conflicts of Interest The IBA has recently grappled with the issue of apparent bias. In 2004, it published Guidelines on Conflicts of Interest in International Arbitrations (“the IBA Guidelines”), which have gained wide acceptance within the international arbitration community. The purpose of the IBA Guidelines is to promote greater consistency across the international arbitration community in the assessment of potential conflicts of interests and apparent bias, and to avoid unnecessary challenges and arbitrator withdrawals and removals. The Guidelines set out General Standards and lists of specific situations that might arise (the Red, Orange and Green Lists), indicating whether such situations warrant disclosure or disqualification of an arbitrator on grounds of apparent bias. The General Standards and the Application Lists are said to be based on statutes and case law in a cross-section of jurisdictions, and on the judgment and experience of practitioners involved in international arbitration. It is expressly stated that “[t]he IBA Arbitration Committee trusts that the Guidelines will be applied with robust common sense and without unduly formalistic interpretation”. In a nutshell, the Red List identifies situations which necessarily disqualify an arbitrator from accepting an appointment either in all circumstances (the Non-Waivable Red List) or in the absence of full disclosure and express waiver by the parties (the Waivable Red List). The Red List includes (amongst other things) situations where a prospective arbitrator has a financial connection or a familial or other personal relationship with a party, such that his/her appointment might be considered to infringe the principle that no one may be a judge in his/her own cause. The Orange List identifies situations which may give rise to doubts as to impartiality or independence, depending on the facts of each case. The Green List identifies situations where no apparent conflict of interests exists from an objective point of view, i.e. situations which are considered to be insufficient ever to compel disqualification of an arbitrator. As the IBA Guidelines state, “the borderline between the categories that comprise the Lists can be thin”. The Red List contains a number of very different situations which might give rise to disqualification or challenge for an arbitrator. For example, in the absence of full disclosure to and waiver by the parties, automatic disqualification is considered to be justified where (a) a close family member of the arbitrator (defined as “a spouse, sibling, child, parent or life partner, in addition to any other

family member with whom a close relationship exists”) has a significant financial interest in the outcome of the dispute or in one of the parties; or (b) the arbitrator’s law firm currently has a significant commercial relationship with one of the parties, or an affiliate of one of the parties. Similarly, the Orange List (situations which may give rise to doubts as to impartiality or independence, depending on the facts) includes a variety of situations, including circumstances where (c) a law firm or other legal organisation that shares significant fees or other revenues with the arbitrator’s law firm renders services to one of the parties, or (d) a close family member of the arbitrator (as defined) is a partner or employee of the law firm representing one of the parties, but is not assisting with the dispute; or (e) a close personal friendship or enmity exists between an arbitrator and a manager or director of a party or a witness or expert. By contrast, the Green List (situations which would never give rise to a material conflict of interest) includes a case where an arbitrator’s law firm is in association or alliance with a firm which renders services to one of the parties, but does not share significant fees or other revenues with the arbitrator’s law firm. ICC Guidance for the Disclosure of Conflicts by Arbitrators Following the publication of the IBA Guidelines, in February 2016 the ICC published its own guidance for the disclosure of conflicts by arbitrators, which has been incorporated into the ICC’s Note to Parties and Arbitral Tribunals on the Conduct of the Arbitration (“the ICC Note”). The ICC Note directs arbitrators to disclose in their Statement of Acceptance, Availability, Impartiality and Independence “any circumstance that might be of such a nature as to call into question his or her independence in the eyes of any of the parties or give rise to reasonable doubts as to his or her impartiality”, although it also explains that disclosure does not imply the existence of a conflict. Arbitrators are advised to “pay attention” to a number of different circumstances, including situations where an arbitrator or prospective arbitrator has a professional or “close personal relationship” with counsel for one of the parties or its law firm. No definition or explanation is offered of the precise nature of any “close personal relationship” which might trigger a disclosure obligation or give rise to reasonable doubts as to the impartiality of an arbitrator. The ICC Note simply explains that it is for the ICC Court to assess whether the matter disclosed is an impediment to service as an arbitrator. This is no doubt a recognition of the fact that each case must turn on its own facts. But how are these issues to be approached in an African context? Appearance of Bias: The African Context The commonly accepted principles and guidelines governing the appointment and disqualification of arbitrators and the identification of conflicts of interests have been developed principally through the case-law of European, North American and Antipodean jurisdictions, and through consultations with practitioners from those legal traditions and cultures. Thus the illustrations and guidance from case-law and the examples in the IBA Guidelines are readily applicable to international arbitrations conducted in those jurisdictions. However, it does

Social Norms, Values and Traditions In Locabail v Bayfield, the English Court of Appeal considered a number of situations which might give rise to a challenge on grounds of apparent bias, and it identified those which, in its view, could and those which could not conceivably succeed. It said: [2000] QB 451 at [25] “Everything will depend on the facts, which may include the nature of the issue to be decided. We cannot, however, conceive of circumstances in which an objection could be soundly based on the religion, ethnic or national origin, gender, age, class, means or sexual orientation of the judge. Nor, at any rate ordinarily, could an objection be soundly based on the judge's social or educational or service or employment background or history, nor that of any member of the judge's family ... In most cases, we think, the answer, one way or the other, will be obvious. But if in any case there is real ground for doubt, that doubt should be resolved in favour of recusal. We repeat: every application must be decided on the facts and circumstances of the individual case.” (Emphasis added) In that case, the Court was considering situations in the context of English society and judicial experience with which it was familiar, and the references to religious and ethnic differences should be understood on this basis. But if the cultural context is different, it is questionable whether “the answer, one way or the other, will be obvious”. For example, is it obviously right to assert, in the context of an African arbitration, that an objection to an arbitral appointment “could not conceivably be soundly based” on the religious, ethnic or national origin of the prospective arbitrator? In many African jurisdictions, religious and ethnic associations can be powerful forces of both cohesion and conflict in social and business life in a way that they are not in European and North American states. As one international business consultant with management expertise in Nigeria has explained: “The way religious tensions affect an operation is demonstrated by Afro Nigeria Business. Part of an international enterprise, this company has a staff of Western expatriates and Nigerians. Religious identities, intertwined with ethnicity, are very important for the Nigerian staff. More than sharing a national identity they consider themselves Hausa-Islamic, Igbo-Christian etc. During religious conflicts in society the cooperation between Muslim and Christian colleagues is severely affected. They distrust and ignore each other. As a result of the religious tensions the entire company faces during these periods an unproductive situation.” May not similar religious allegiances and differences potentially influence the minds and objectivity of commercial arbitrators? If one party to an African arbitration appoints a co-religionist as arbitrator in a jurisdiction where society is subject to powerful religious ties and differences, a challenge on the grounds of apparent bias cannot be lightly dismissed. And where the relevant test is whether there is “a real possibility of unconscious bias”, it may be unwise to assume that a challenge on grounds of religious affiliation “could not conceivably be soundly based”. The same is true of ethnic or tribal affiliations in many African jurisdictions. Ethnic allegiance is a much more distinct and powerful force in many African societies than it is in Europe and North America. Whilst globalisation and urbanisation may be eroding some of this force in many African countries, and African economies and societies may be becoming increasingly ‘Westernised’, it is a rash court that would dismiss out of hand the possibility that tribal allegiance might have an unconscious pull on the mind of a prospective arbitrator. The nature and power of tribal allegiances will differ from one African jurisdiction to another, but it is a feature of African societies that may merit consideration when examining the issue of arbitral impartiality in a particular case. What of the suggestion that close acquaintance with someone involved in the case would give rise to a real danger or possibility of bias? Might “close acquaintance” have a wider ambit in an African social or business context? The same point may be made in relation to the reference in the IBA Guidelines to “a close family member” and “a

CONTINUED ON PAGE 14

05.07.2016

/11

12/IMAGES

05.07.2016

The Book, ‘Arbitration in Africa A Review of Key Jurisdictions’ authored by John Miles, Tunde Fagbohunlu SAN and Kamal Shah was launched a few weeks ago at the Eko Hotel and Suites. Here are some of the personalities that graced the event. photos: Sunday Adigun

L-R: Dr. Wale Olawoyin, NBA President, Mr. Augustine Alegeh SAN and Tunde Fagbohunlu SAN

L-R: Mr. Kamai Shah, Mrs. Doyin Rhodes-Vivour and Tunde Fagbohunlu SAN

Mr. Udeme Ufot and Mrs. Dorothy Udeme Ufot SAN

L-R: Mrs. Foluke Akomoladun, Mrs.Funke Adekoya SAN

Professor Fabian Ajogwu SAN (left) and Mr. Wale Akoni SAN

Mr. Tunde Fagbohunlu SAN and Rukia Burati

Mr. Tunde Busari SAN and Mr. Tunde Ogowewo

Mr. Mutiu Ganiyu (left) and Mr. Adesina Salawu

Mr. Patrick Ikwueto SAN

L-R: Mr. Edward Luke, Mr. Tunde Fagbohunlu SAN, Mr. Seye Kosoko and and Mr. Ore Olajide

Mr. Tunde Ogunseitan and Mr. Sami Houerbi

Kehinde Adefulire and Dauloa Adelowo

Mr. Biodun Odunlami (left) and Mr. Olawale Adebambo

Virginie Colaiuta and Ngo-Martins Okonmah

05.07.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR Comfort v. Johnny On a fateful day in the bounds of a packed court with a full docket of the day, the first case name was called- Madame Comfort v. Johhny Oko. Little did the Lawyers and Litigants know what craziness they were in for that morning. The course of the proceedings were to go thus:

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

Dear Counsel, Can you explain the proposed law to ban street trading (hawking) in Lagos? It has been described as the spontaneous reaction of the governor to the incident involving the paramilitary agency’s Kick Against Indiscipline at Maryland, Lagos in which a life was lost. Does the governor have the right to promulgate a law on television? Can this law be obeyed or enforced? Given the fact that a large number of young people depend on hawking to survive the harsh economic conditions. What is this purported law all about? Please kindly enlighten the public. A.E.D., Lagos. Dear Mr. Etiuwa, Dear A.E.D., It is certainly not true that Governor Akinwumi Ambode promulgated any law on television banning street trading as erroneously reported by some social

media platforms. The fact is that there had been a law prohibiting street trading in Lagos for many years now. It is just that the state lacked enough manpower to effectively enforce the law hitherto. The law which bans hawking on Lagos streets is Section 3 of the Lagos State Road Traffic Law 2012 and what the governor did last Friday was to simply announce its strict enforcement and sensitise the public on its provisions. This is in addition to Section 1 of the Lagos State Street Trading and Illegal Market Prohibition Law 2003 which restricts street trading and hawking in the metropolis. What Governor Ambode reiterated is “The issue is we need to enforce our laws because we already have a law in respect of that and then there is a clause in it which says the buyer and the seller are both liable and that we are going to fine them either N90, 000 or a six month jail term.’’ It is therefore an old law which is only being enforced.

Judge: Are the Claimant and Defendants in court? Claimant and Defendant: Yes my lord Judge: Miss Orewa, you are Counsel for the Claimant correct what is this matter about? Miss Orewa: Yes my lord- this is an action for “Breach of Promise to Marry” Judge: (*Astonished*) What?! Miss Orewa: Yes my lord, Mr. Johnny Oko promised to marry my client Madame Comfort Idirigbe on January 1st of this year my lord. He told her in the presence of her family and friends at a very public New Year’s party that before June he would propose with a ring. It was on the basis of this promise that Madame Idirigbe offered Mr. Johnny the sum of N50 million to start up a gold mining business. Judge: Your client is actually serious about this action? Miss Orewa: Yes my lord, deathly! Judge: Counsel for the Defendant, Mr. Paul Olarakun, apparently your client has been at large. The Claimant says she has been looking for Johnny? Mr. Paul: My lord this is an absurd claim, in this day and age, a man cannot be forced to marry someone he is not interested in?! Judge: Unfortunately Mr. Paul I have checked our statutes and find that this is actually still an actionable Tort. So unless you have a defence I must ask your client to pay over… Mr Paul: Ah! My lord, please! Before you make any judgment, my client has a ready defence. (*With a big grin of pleasure Mr. Olarakun then says*) Executive Immunity. Judge: What?!! Mr. Paul: Yes my lord. You see my client Mr. Johnny Oko is also Prince Obembe of Obembe land a small region in Bakasi Peninsula. He has been living in Nigeria under the pseudonym of Johnny Johnny Oko. It is a well known fact that Obembe is a protectorate of the Federal Republic and as an independent sovereign of the region he is entitled to sovereign immunity. Judge,MissOrewa(Aghastandshocked)andMadameComfort: Miss Orewa: (Finally mustering courage up to speak) My lord! Obembe is small quarter on the border with Bakassi it is not even a hamlet! Judge: If I have learnt anything today Miss Orewa, it is that when you think that you have seen it all, you have not. Please Madame Comfort, Prince Johnny and crew, I find no case to be answered, kindly continue your torrid romance else where!

14/

05.07.2016

IN BLACK AND WHITE ADERINSOLA FAGBURE

afagbure@yahoo.com

Corporate Regulatory Compliance - Whose Responsibility?

he other day, I was discussing with an investor who was complaining that a company in which he was a major shareholder had incurred a ridiculous fine for non-compliance with statutory regulations. The company, a player in the food and beverage sector was obliged to pay the penalty to its primary regulator within the year, at the risk of declaring a loss. Having pensioned, the investor was truly worried by the possibility of not receiving dividend that year and asked whose responsibility it was to uphold compliance standards. I understood the senior citizen’s concerns but was not oblivious to the fact that apart from the financial implications, there were reputational issues for the business in question. The afore-mentioned company is not alone in the penalty circle. Recently landmark fines were imposed on publicly quoted banks, a player in the brewery business and a well-known telecommunications company within one quarter, by the FRCN, the CBN, NAFDAC and NCC respectively. These penalties recorded an estimated combined figure representing roughly 12.5% of the already signed 2016 budget. This is indeed a whole lot of regulator activity in the space of just three months. It can be said that more than ever before, companies need to understand their compliance requirements, with the Nigerian government’s resolve to explore alternative revenue sources by upholding stricter standards. In general, regulatory compliance describes an organisation's adherence to laws, regulations, guidelines and specifications relevant to its

business. One must admit that the regulatory environment in Nigeria is complex, with a duplicity of supervisory bodies and laws. Things are consequently difficult even for companies that strive to do the right thing as the existence of a plethora of laws allows for ambiguity in interpretation, and sometimes overlaps. Each industry player is usually accountable to a minimum of 3 supervisory bodies, sometimes operating in conflict. For example a publicly quoted bank will have to submit returns to the CBN, SEC, NDIC, FRCN, FIRS, among others. There is a need for some degree of harmonisation among regulators. In the meantime, companies need to step up their game, particularly when they are publicly quoted. Investors are more enlightened and are more than ever before beginning to ask more questions. The growth of institutional shareholders has encouraged investors to put their money where their mouth is. It is for this reason that the role of the compliance officer whose position may or may not be distinct from that of the company secretary has become more challenging. It must however be mentioned that the modern trend in corporate governance is to separate both offices, with one person solely responsible for ensuring regulatory compliance in medium to large sized establishments. According to Wikipedia, The chief compliance officer (CCO) of a company is the officer primarily responsible for overseeing and managing regulatory compliance issues within an organisation. The role has long existed at companies that operate in heavily regulated industries such as financial services and healthcare. For other companies, the accounting scandals recorded in the 2000s and the recommendations of the U.S. Federal Sentencing Guidelines, Dodd Frank Act and Sarbanes Oxley have led to the

appointment of CCOs in many other spheres of business. As already mentioned compliance issues are more relevant to public companies because of the need to account to a larger pool of shareholders as well as other stakeholders. In Nigeria, the primary regulator in this regard is the Securities and Exchange Commission (SEC). Consequently the Investment and Securities Act (ISA 2007) has laid down reporting requirements that regulate publicly traded securities. The term security as used in the ISA Act refers to stocks a company issues and may include derivatives, swaps, bonds, debentures and futures. Basically the provisions of this legislation require companies to file and submit quarterly returns which must be made available to the public. It regulates all public issues and proxy statements, allows for maximum disclosure and prohibits insider trading. Apart from complying with these rules, the Financial Reporting Council (FRC) guidelines also apply to public companies. The most competitive

companies in the world have signed up on the UN Global Compact and therefore have more stringent compliance obligations. The task of compliance may be daunting but it is the responsibility of the compliance officer and the board of directors to ensure that standards are not only kept but are seen to be maintained. A box ticking approach to governance should be avoided as adherence to global best practice ultimately improves the bottom line. The era of shareholder apathy is long gone and with the world of technology which allows for easier access to information, board members must be alive to their responsibilities and ethical obligations. The reputational cost of misconduct leads to diminished shareholder value. Therefore attention must be paid to the ethical and reputational implications of a Company’s operations, not just the financial ones. No director wants to wake up to see that his or her company is in the headlines for being slammed with a high fine. To uphold their duties of care, and to avoid personal liability for misconduct, businesses must ensure that their directors understand all the laws and regulations relating to their industry. Directors’ continued education and evaluation must be taken seriously, with the compliance officer coordinating the same. The board evaluation process helps to ensure that directors understand their responsibilities and must therefore be conducted in a transparent manner. Above all, The Chief Compliance officer who usually has a legal background must be neutral in all dealings and must see to it that the company remains above board. In the event that fines are imposed, penalties should be negotiated openly and where an agreement cannot be reached, the relevant company should eat the humble pie as well as learn lessons to prevent future infractions.

TRIBUNAL BIAS IN AFRICAN ARBITRATIONS CONTINUED FROM PAGE 10 close personal friendship” and the reference to “a close personal relationship” in the ICC Note. In most African societies, family obligations extend rather wider than they do in European and North American societies. For present purposes (I do not pretend to be an anthropologist), they may be conveniently encapsulated by the term, kinship. Kinship covers a widely extended family, and it imposes obligations and expectations on individuals which are often stronger than those which govern individuals in Western countries. For example, the notion of kinship embraces a strong tradition of respect for elders and support for kin in need. Notwithstanding the march of globalisation and urbanisation, kinship allegiance and obligations to the extended family are still powerful forces in African societies. Such obligations could exert as powerful an influence on the conscious or unconscious mind of an arbitrator as a close family association in the Western sense of the term, or a close business connection or acquaintance. Might this be a reasonable basis for a challenge on grounds of apparent bias? I only ask these questions; I do not suggest answers, because every case must turn on its own particular facts and circumstances. Of course, one must not lose sight of the point, emphasised by the English courts, that a measure of robustness is required when considering allegations of apparent bias. But the balance between the need for robustness and the need to guard against any possibility of bias can only properly be weighed here by if one has a proper understanding of the relevant cultural context. The African Legal Market An arbitrator’s professional connections may also give rise to challenges on grounds of apparent bias. For example, the IBA Guidelines state that, where a law firm rendering legal services to one of the parties shares significant fees or other revenues with the arbitrator’s law firm, this may give rise to reasonable doubts as to his/her independence or impartiality. How is this to be approached in

an African context? In their 2015 report on the African legal market (“the 2015 Redstone Report”), Redstone Consultants reported that African firms were “highly dependent on referrals from international law firms”, and that the proportion of fees arising from referrals from global firms “typically lies somewhere between one quarter and three quarters of revenue”. The report also reported that African firms were not entirely dependent on global firms, and that they were “increasingly focused on building or joining networks of law firms”. It will be interesting to see whether the trends identified in that report have continued or changed. However, the picture of the market that emerges from this report is one of (1) significant dependence by African firms on one or more global firms for referrals of international business, and (2) a countervailing strategy of forming alliances with other African firms in order to grow business and market-share for international work. How is the issue of potential tribunal bias in international African arbitrations to be considered against such a market background? Given the apparent extent of reliance by leading African firms on global firms for the introduction of international work and revenue, the IBA Guidelines suggest that challenges to arbitrators from such firms may succeed if their firm shares “significant revenues” with any global firm which provides services to one of the parties. Similarly, the IBA Guidelines suggest that an alliance between African firms to compete for international work may also give rise to a successful challenge if the arbitrator is a partner or employee of a firm which shares “significant revenues” with one or more firms in the alliance which acts for one of the parties. In a given case, it would be necessary to examine the terms of any alliance agreement, but this is an issue of which the leaders of such firms will need to be aware. It follows that, if the current IBA Guidelines are applied, the strategies that African firms have adopted in order to compete for international work threaten to disqualify the partners and

employees of such firms from appointment to some tribunals in major African arbitrations. This could seriously impede the growth of a body of suitably qualified and experienced African arbitrators and thus the development of the international arbitration market in Africa. Tribunal Bias: The Challenge of African Arbitrations The law and guidelines on apparent bias, which have been established by reference to the structures and norms of Western society and business practice, raise challenges for the development of arbitration in Africa, and in particular a large market of qualified and experienced arbitrators on the continent. It is important that these principles and guidelines be carefully reviewed and applied on the basis of a properly informed understanding of the cultural norms and structures of African societies and the African legal market. These issues should concern everyone involved in the arbitral process, including (1) the legal advisors to parties who may wish to mount or resist challenges on grounds of tribunal bias; (2) arbitrators facing challenges, who must consider whether to rise robustly to any challenge or whether to accept that the only safe course is recusal; (3) arbitral institutions such as the ICC, which publish rules under which arbitrations are conducted, oversee the appointment of arbitrators and administer arbitrations under their aegis; (4) courts with supervisory jurisdiction over an arbitration, to whom any challenge may be referred; and (5) professional bodies such as the IBA which seek to develop and promulgate authoritative guidance for the benefit of the profession at large. The issues posed must also be recognised and carefully considered on any challenges to awards from African arbitrations, whether those challenges are made to the supervisory courts of the arbitral seat or to an enforcing court in another jurisdiction. In addition, leaders of African law firms wishing to compete in the international arbitration market need to consider the dilemma

posed for arbitrators in their firms by a business model based on alliances, referrals and fee-sharing with global firms and joining networks of African firms. Arbitral institutions and the IBA should engage with African firms to consider guidelines on conflicts of interests and tribunal bias in this market context. These are challenges for the development of an international arbitration market in Africa, and a more predictable framework for the appointment of African arbitrators and the determination of challenges to tribunals and awards. As has recently been said: “As companies move to do business in Africa, a greater sensitivity to African culture will be required and an understanding of African cultural realities should facilitate business transactions in this region. African culture differs from other cultures in the way Africans construct meanings, negotiate social contexts and make sense of their environment (Ahiauzu, 1986).... We acknowledge the fact that to propose a monolithic African culture ... may be inaccurate because of the strong national differences. Nonetheless, there are some cultural dimensions common to the sub-region (Grzeda and Assogbavi, 1999). These commonalities include: a hierarchical social structure, the importance of kinship, the primacy of the group, the driving norms of human interdependence, virtue of symbiosis and reciprocity (Mangaliso, 2001), ... and the value attached to the extended family (Mwamwenda, 1999)... ... [I]n the light of significant market potential for multinational corporations in Africa, research is needed to continue the assessment of the applicability of Western business models in Africa (Appiah-Adu, 2001; Kuada and Buatsi, 2005).” The same is true of arbitration in Africa. It is time to take this work forward. Harry Matovu QC of Brick Court Chambers presented this paper at the 1st International Chamber of Commerce (ICC) Africa Regional Arbitration Conference held in Lagos, Nigeria on 19 – 21 June, 2016.

05.07.2016

IMAGES/15

The Nigerian Bar Association Section on Business Law (NBA-SBL) held its 10th Annual Conference with the theme â&#x20AC;&#x153;Law Reform and Economic Developmentâ&#x20AC;?. Here are some of the personalities who attended the event which took place at Transcorp Hilton, Abuja. photos: Julius Atoi

Vice President, Professor Yemi Osinbajo SAN (left) and SBL Chairman, Mr. Asue Ighodalo

Chief Judge, Federal High Court, Hon. Justice Ibrahim Auta and Lagos State Chief Judge, Hon. Justice Oluwafunmilayo Atilade

L-R: Mrs Funke Osibodu, Kaduna State Governor, Mallam Nasir el-Rufai

Former NBA Presidents, Mr. Okey Wali SAN (SAN) and Mr. J.B Daudu SAN

NBA President, Mr. Augustine Alegeh SAN (left) and Pastor Ituah Ighodalo

L-R: Mr. Asue Ighodalo, Minister of Solid Minerals Development, Dr. Kayode Fayemi and former Lagos State Attorney General, Mr. Olasupo Shasore SAN

Former Attorney General of the Federation and Minister of Justice, Chief Bayo Ojo SAN and Mrs. Doyin Rhodes-Vivour

L-R: Mr. Gbenga Oyebode, Mrs. May Agbamuche-Mbu and former Ekiti State Attorney General, Mr. Olawale Fapohunda

Chairman, SBL Conference Planning Committee Dr. Babatunde Ajibade,SAN

Lady Deby and former NBA President, Dr. Olisa Agbakoba SAN

Mr. George Etomi and his wife, Efe

L-R: Mr. Nico Vervelde, Ms. Yvonne Ike and Minister of State Industry, Trade and Investment, Mrs. Aisha Abubakar

Mrs. Funke Agbor and Mr. Osayaba Giwa-Osagie

16/IMAGES

05.07.2016

L-R: Mrs. Nere Teriba, Mr. David Ofosu-Dorte, Mr. Asue Ighodalo and Minister of Solid Minerals Development, Dr. Kayode Fayemi

Former Minister of Power, Dr. Lanre Babalola and Mrs. Andrea Ajibade

L-R: Minister of State for Agriculture, Senator Heineken Lokpobiri, Mr. Asue ighodalo and Professor Imran Oluwole Smith

Mr. Jemide Ayuli (left) and Mr. Seni Adio

L-R: Mrs. Yewande Zaccheus, Ms Cecilia Akintomide and Mrs. May Agbamuche-Mbu

Mrs. Aishah Ahmad

Hon. Justice Nnamdi Dimgba (left) and Mr. Chuka Agbu SAN

Mrs. Myma Belo-Osagie (left) and Mrs. Bunmi Fayokun

Mr. Gbenga Oyebode (left) and Mr. Keem Belo-Osagie

L-R: Mr. Olumide Akpata and Mrs. Miannaya Aja Essien SAN

L-R: Mr. Anthony Nwaochei, Mrs. Anastasia gbem and Mr. Mobolaji Ojibara

L-R: Former Minister of Aviation, Mr. Osita Chidoka, NBA General Secretary, Mazi Afam Osigwe and Tobenna Erojikwe

L-R: Mr. Ken Etim, Mrs. Justina Lewa and Mr. Afam Nwokedi

Theodora Kio-Lawson

NBA Executive Director, Mrs.Ifueko Alufohai

L-R: Mrs. Yemisi Wada, Mr. Olakunle Olusanya and L-R: Yetunde Okojie, Osose Aziba and Mrs. Ayoyinka Mrs. Oyinkan Badejo-Okusanya Awosedo

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD

ENERGY

Kachikwu’s $80bn Chinese Investment as a Game Changer

After the failed bid by the previous administration to woo Chinese state-controlled oil giant, CNOOC to acquire concessions in 23 prime oil blocks in 2009, the recent signing of deals with Chinese firms for over $80 billion investments by the Minister of State for Petroleum, Dr. IbeKachikwu will be a game changer as it will increase the competitiveness of Nigeria’s oil and gas industry. Ejiofor Alike reports Nigeria’s desire to attract Foreign Direct Investment (FDI) and diaspora remittance into the oil and gas industry has suffered in the past decade due to lack of clarity of terms occasioned by the non-passage of the Petroleum Industry Bill (PIB). With the uncertainty in the operating environment, the western multinational firms, including Shell, Chevron, Total and ExxonMobil,which dominated the sector shunned new investments, citing unpredictability of the environment. Faced with the challenge of not attracting new investments from its traditional allies in the oil and gas industry, the federal government had wooed Asian investors as alternative to the multinational oil majors. These Asian investors, who were eager to expand their footprints in Africa, responded positively and signed oil-for-infrastructure deals with the previous administration of President Olusegun Obasanjo. However, these deals were later marred by corruption and absence of commitments by the investors. But, in its quest to expand its African crude oil reserves, the Chinese state-controlled oil giant, China National Offshore Oil Corporation (CNOOC) had in 2009 sought to acquire 23 prime oil blocks with six billion barrels of reserves, representing a sixth of Nigeria’s crude reserves, for $50billion in 2009. The deal, which could have stimulated more investments and competitiveness of Nigeria’s oil and gas sector, could have also potentially created conflict with the western International Oil Companies (IOCs), which already own stakes in the blocks. But the acceptance of the offer by the federal government would have also broken the monopoly of the IOCs in Nigeria’s oil and gas industry. It was not however clear whether the 49 per cent stakes CNOOC had wanted to acquire would have come from the stakes being held by these IOCs under the joint venture with the Nigerian National Petroleum Corporation (NNPC). But a leaked letter from the Office of the President of Nigeria, dated August 13 and published by the Financial Times, contained the detailed talks between CNOOC’s representative in Nigeria, Sunrise, and the office of the late President Umaru Musa Yar’Adua. According to the letter, the federal government rejected CNOOC’s initial offer estimated between $30 billion-$50 billion (then about £18 billion-£31.4 billon) and informed the Chinese firm that “Your interest in all the listed blocks will be considered if your revised offer is favourable.” However, there were speculations that the federal government just wanted to use the Chinese offer to extract more favourable terms from the IOCs as most of their licenses expired between 2009 and 2011. Also, as at the time of the talks with the Chinese, the federal government had planned to approve major reforms in the oil and gas sector by signing the Petroleum Industry Bill (PIB) within three weeks. The then Presidential Adviser on Petroleum, Dr. Emmanuel Egbogah also later confirmed that Chinese companies offered to buy six billion barrels of oil reserves for $50 billion. Egbogah said the Chinese companies were in talks with the federal government, but declined to reveal the identities of the Chinese companies. It was gathered that due to the sustained pressure by the western oil majors, the offer was finally rejected by the federal government. Kachikwu’s latest efforts

Chinese Premier, Li Keqiang After the failed efforts of the previous administrations to attract the much-needed investments from China, Kachikwu recently provided a game changer,signing Memorandums of Understanding (MoUs) with several Chinese firms for over $80billion new investments, spanning five years, in the oil and gas industry covering pipelines, refineries, gas and power, facility refurbishments and upstream financing. The minister had told THISDAY from Beijing, China, that the agreements had been executed during the three-day roadshow in the Asian country to attract investments to Nigeria’s oil and gas sector. The objective of the MoUs was to bridge the infrastructure funding gaps in the Nigerian oil and gas sector. “I can confirm that we had a successful outing and finally raised investment commitments and signed MoUs worth $80 billion. Out of this, $10 billion approximately was raised on the sides with our steer and push for two Nigerian companies – Delta Tek and Salvic

While the residents of the Niger Delta had complained of harassment and indiscriminate arrests by soldiers hunting the militants, the heavy presence of troops failed to prevent the escalation of the militant attacks as oil production fell to a 20year low

Kachikwu he initiated with militant groupsprovided the grounds for the negotiation with the Chinese investors. Before the federal government ordered the withdrawal of troops from the Niger Delta region early last month, there were allegations of a heavy-handed military response to the renewed attacks on oil and gas installations by the Niger Delta Avengers (NDA), which had vowed to ground Nigeria’s oil production. NDA had earlier in the year renewed the attacks on several oil and gas facilities, curbing oil and gas production and forcing oil companies to shut some export terminals. While the residents of the Niger Delta had complained of harassment and indiscriminate arrests by soldiers hunting the militants, the heavy presence of troops failed to prevent the escalation of the militant attacks as oil production fell to a 20-year low. The attacks also affected power supply as generation dropped below 2,000 megawatts from an all-time high of 5,074MW on February 2, 2016. However, after a meeting of the state governors of the Niger Delta with the Vice President, Prof. YemiOsinbajo, the federal government announced the withdrawal of the troops and directed soldiers to continue to patrol only the waterways. Before the government ordered the withdrawal of the soldiers from the oil-producing region, Kachikwu had announced that President MuhammaduBuhari had directed a two-week cessation of military offensive in the Niger Delta region, to enable the government dialogue with the militants. Since the various actors in the crisis, including officials of government started beating the war drums, the minister had not hidden his preference for dialogue in resolving the crisis. At a Town Hall Meeting of Ministers and other Stabilising operating environment Before his trip to China, Kachikwu had taken stakeholders in Uyo, AkwaIbom State, Kachikwu deliberate steps to douse tension in the Niger Delta. This has started yielding resultsas the talks Continued on page 27 Petroleum – while the balance of $70 billion includes MoUs signed by investors and financiers for projects with the Nigerian National Petroleum Corporation (NNPC),” he said. Kachikwu also revealed that other than the agreements executed for investments totalling $80 billion, he also secured commitments from Sinopec and CNOOC to commit to further investments in Nigeria’s upstream oil sub-sector to the tune of $20 billion, which would be concluded in the next few months. According to him, this would effectively bring the total amount of prospective investments by Chinese firms over a five-year period to over $100 billion. “Outside these (MoUs for $80 billion investments), the two largest oil companies in China, Sinopec and CNOOC, signed investment MoUs agreeing to announce after further discussions on major investment increases in the Nigerian oil and gas in the next few months. “Given the areas of focus of these two companies, we do not expect that investment to be less than $20 billion. The net effect of these and other agreements in principle reached with investor interest in China on this roadshow will potentially provide investment funds for Nigerian oil and gas of over $100 billion over the next five years. “These investments cover every facet of Nigeria’s oil and gas sector – upstream, pipelines, downstream, gas and power, modular refining in the creeks, engineering services, etc. “It has been a fantastic outing and if we can follow through on all these, it will change the face of Nigeria’s oil and gas forever. This will bring hope even to the Niger Delta and is the single biggest amount of MoUs signed on investment in any third world country in a road-show,” he said.

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD

ENERGY

Addressing the Nigeria-Sao Tome JDA Imbroglio

Chineme Okafor writes that allegations of fraudulent practices levelled against top management of the Nigeria-Sao Tome Joint Development Authority (JDA) ought to be investigated by the government

President Muhammadu Buhari (right) and Prime Minister of Sao Tome and Principe, Patrice Emery Trovoada Official documents of operations in the NigeriaSao Tome Joint Development Authority (JDA) as well as petitions written to the federal government by workers of the Authority have highlighted alleged systemic malpractices going on at the JDA, which need to be investigated. The documents also showed that all may not be well with the operations of the Authority, as alleged unwholesome practices perpetrated by its key officials could lead to needless frosty diplomatic relations between Nigeria and Sao Tome and Principe (STP). Specifically, the content of a petition written by embattled pioneer employees of the JDA, which was obtained by THISDAY, revealed that up to 35 people, including nationals of STP were recently sacked through questionable means by an alleged incomplete board of the JDA. Backed by damning documents that alleged that the board had for a while engaged in mischievous operational acts in the JDA, the petition called for a full probe of the activities of the JDA stating from 2008 when it last commissioned an independent audit. Nigeria-Sao Tome and Principe Joint Development Zone (JDZ) is a product of extensive negotiations between Nigeria and the Democratic Republic of Sao Tome and Principe on an area of overlapping maritime boundary. Both countries in 2001 reached an agreement to facilitate oil exploration and jointly develop resources within the joint development zone of the Gulf of Guinea. They then set up a JDA in 2002 to manage operations in the JDZ. The petition alleged that while STP has actively worked on developing its own part of the zone, Nigeria has largely failed to move forward on its own. It fingered these unwholesome developments in the JDA as being responsible. Contentious issues THISDAY gathered that the reasons why the JDA is currently overwhelmed by corrupt practices; enduring infighting between top executives; and highhandedness in the management of internal operations and human resource issues may not be isolated from official greed. The petition traced the alleged operational inefficiency of the JDA to these developments, with Nigeria being the biggest loser in all of this. It was gathered that the petition was submitted

to the ministry of foreign affairs asking for its immediate interventions, yet nothing had been done. In its identification of the contentious issues, the petition noted the unilateral decision of the incomplete board to close down the JDA without any presidential approval, as well as the sack of the pioneer JDA employees. According to it, this was done after the management collected N350 million from the federal government in March 2016 as operational expenses. The embattled pioneer employees, the petition added, were allegedly victimised by the management for daring to question several instances of operational misconduct in the agency. It stated that these people were accused of backing the embattled director at the JDA, Collins Kalabare who until his tenure elapsed was the executive director in charge of monitoring and inspections at the JDA. Kalabare it explained was at loggerheads with Kashim Tumsah, executive director, finance and administration and secretary of the JDA board over operational irregularities. According to the allegations, Kalabare had on June 9, 2015 objected to the award of Nigeria’s stake in the JDZ oil block to Equator Hydrocarbons Ltd, a company he alleged was incompetent and unable to operate the block. His objection, the petition said did not go down well with Tumsah and the board and he was subsequently kept out of the entire process until his tenure elapsed, and no replacement came from the presidency. It said Kalabare was technically still a member of the board even though he had used up his six years tenure, adding that the operational principles of the JDA allowed for him to continue until a replacement came from the presidency. It said the oil block – JDZ bloc 1 which Kalabare wanted its award to go through competitive process was a lucrative one. The petition noted that the award of the block to Equator Hydrocarbons Ltd has yielded nothing for Nigeria as no meaningful development has been recorded so far on it. “The position taken by the ED M&I (Kalabare) has become evidently clear as the phase 1 of the production sharing contract (PSC) expired since 30th April, 2016, after a four month extension granted by the board, without fulfillment

of the minimum work programmer and the financial commitment as enshrined in the PSC,” the petition stated on the status of work on JDZ bloc 1. It added: “As at the time the phase 1 expired, operator did not submit to the JDA performance bond as provided in clause 7.8b of the signed PSC and the parental guarantee as provided in clause 7.10 of the signed PSC which became due days after signing of the PSC.” Explaining further the internal brickbats in the JDA, the petition stated that Kalabare was subsequently barred from entering the premises of the JDA on October 7, 2015 when his tenure expired and no replacement for him was appointed. This action was not supported by employees and following their expression of contrary views on the issues, they were afterwards charged for insubordination. Decisions by the board According to the petition, more decisions which it described as erratic were taken by the incomplete board. These decisions include the institution of an external panel to adjudicate and decide the employment fate of nine employees who they allegedly accused of insubordination. The petition said the nine employees were said to have written to the country’s secret services and anti-corruption agencies to beam their searchlights on the activities of the JDA, but this did not go down well with the board, hence a letter of indefinite suspension with half salaries was issued to the nine on April 22, 2016. It noted that after the embattled staff protested their maltreatment and invoked their right of appeal in line with the JDA staff regulations and conditions of service (JSR-COS) which would have triggered an immediate stay of action in line with its section 13.3.7, another letter was circulated to all staff on May 31, 2016, conveying the board’s decision to close down JDA due to lack of fund. The letter advised everyone to vacate their offices and hand over properties of the JDA. According to the petition, the closure of operation was however immediately followed with massive recruitment of new workers, majorly relations of influential persons in the

country to replace the pioneer employees, whose employments were terminated. The development also affected nationals of STP who have been asked to leave the country without any form of disengagement settlement. The petition noted that those affected are reportedly stranded with heavy bills owed on living expenses and other ancillaries. The action, according to the petition was illegal as the board of the JDA which cited financial constraints for its decision, has no powers to take such decision. Areas to be investigated While the petition indicated that Nigeria from the award of the JDZ bloc was already losing possible revenues that could have come from its activeness, it also pointed out that there have been several procurement irregularities at the JDA that require intense probe. It said procurement for the construction of its headquarter building in Abuja was an example of such and should be investigated by the government. It also said Nigeria’s share of monies raised in the licensing round and which was shared in the ratio of 60:40 with STP was still in the Central Bank of Nigeria (CBN) following the closure of defunct Hallmark Bank where it was lodged. According to the petition, efforts to access the fund by the board have reached an advanced stage. The petitioners thus asked the government to put in place proactive surveillance on the fund to stop the board from gaining access to it considering alleged malpractices at the JDA. The petition equally alleged that the JDA had its last external audit in 2008 and that it was currently making efforts to net another N350 million from the federal government for operational expenses in addition to the N350 million it allegedly collected earlier in the year. According to it, the current management of the JDA could also drag Nigeria into an avoidable diplomatic mess with STP and other countries with such alleged official misconducts The petition also asked the government to immediately enforce the rule of law in the operations of the JDA, alleging that the objectives for which it was set up were being undermined.

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD

ENERGY

NNPC to Investigate Alleged Monopoly in LPG Market

Ejiofor Alike

The Pipelines and Product Marketing Company Limited a subsidiary of the Nigerian National Petroleum Corporation (NNPC) has said it will probe the allegation by some marketers that its officials connived with some terminal operators in Lagos to divert Liquefied Natural Gas (LPG) vessels and create monopoly in the LPG, better known as cooking gas market. Speaking in Lagos during the recent inauguration of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) Building and Resource Centre, the

Managing Director of PPMC, Mr. Ahmed Farouk said the company would not tolerate any form of monopoly in the industry. Ahmed who was represented by the PPMC’s Executive Director in charge of Supply and Distribution, Mr. Justine Ezeala said the allegation that the PPMC officials were involved in diverting LPG vessels to private jetties would be investigated. “I am hearing this for the first time. I have been executive director for nine months and I am hearing this for the first time but I am not holding brief for anyone; if this is substantiated, we will take steps. If you

have any evidence, please, bring it to my notice. No one in their right minds will take that step to frustrate efforts of bringing the LPG closer to the people. I will look into it,” Ezeala said. He said efforts were ongoing to improve the efficiency of the LPG vessels by working with relevant stakeholders. “We are trying to work with our partners to ensure that we can sequence vessels to berth better; use the facility that we currently have and I think if we use it efficiently, we will still be able to make progress until we are able to build additional jetties. But right now, those jetties are 40 years old and so, there will definitely be

some constraint,” he added. In his speech, the President of NALPGAM, Mr. Basil Ogbuanu lauded the Nigeria LNG Limited for its intervention in the LPG market. Ogbuanu said the intervention of NLNG in 2007 solved the problem of inadequate supply of LPG, popularly known as cooking gas in Nigeria. He recalled that before 2007, marketers, who borrowed money from banks to build LPG plants were dying of heart attack due to lack of cooking gas to sell at the plants. “Over the years, the industry has gone through different era of erratic, inadequate and

import dependent supply of LPG into the Nigerian market but the situation has since changed for the better at the intervention of the Nigeria LNG Limited- LPG domestic supply scheme. This positive development has not only guaranteed steady supply of LPG but it has equally stimulated the market, attracted investment across the value chain and ultimately created additional job opportunities,” he explained. Ogbuanu acknowledged the efforts of other stakeholders for their unquantifiable and indirect contributions to the success of the association. He noted that the commis-

sioning of the NALPGAM House was a strong indication of the high growth potentials in the LPG industry. According to him, the commissioning marks a key milestone in the history of NALGAM in particular and the Nigeria LPG industry in general. “My joy essentially is derived from the fact that the actualisation of this dream despite all odds and challenges has at last become a reality. I hereby humbly state that our number one agenda on the 5-point agenda, which is to aggressively reposition NALPGAM, has eventually paid off,” he added.

KACHIKWU’S $80BN CHINESE INVESTMENT AS A GAME CHANGER had an open disagreement with the Minister of Transport, Mr. ChibuikeAmaechi, on the establishment of a Nigerian Maritime University, proposed for Okerenkoko in Warri SouthWest Local Government Area in Delta State. Amaechi had told the Senate Committee on Maritime on January 19, 2016 that the government had the scrapped the project, which was to be financed by the Nigerian Maritime and Safety Administration Agency (NIMASA) and whose groundbreaking was done by former President Jonathan in 2014. Also in response to a question at Uyo, Amaechi also re-echoed his earlier position, insisting that Buhari’s administration lacked the funds to continue with the university project. “Okerenkoko (Maritime University), I am not against. My argument about Okerenkoko is that land alone is N13billion. If you give me N13billion, I will buy the half of Lagos. That N13billion has built the university already,” Amaechi argued. He said the Economic and Financial Crimes Commission (EFCC) should recover the N13billion already paid for the land, then “I will build the university for them”. “What to do: let EFCC retrieve the money and release the money and we build the university. If they bring the N13 billion, I will build the university for them. That is for land alone. I believe the Federal Government does not have money. When we have money, we can continue. The minister of petroleum has said he would look for the money. Minister, give me the money and we continue,” Amaechi added. But sensing that Amaechi’s outburst could worsen the crisis in the Niger Delta, Kachikwu disagreed openly with the Transport Minister, saying he was in support of the project, and his comment drew a loud applause from the audience. “First, let me say on Okerenkoko University, I disagree with the Minister of Transport. Any

facility that is located in the South-South we should work close to developing it. I don’t care the circumstances under which you are placed. It is not in my position to determine whether land was valued at N3billion or N10billion. The appropriate institution which is at the cost system will determine that. That has nothing to do with development of infrastructure. And as far as I know, so much has already gone into the university. So much physical of assets are being developed. We are not going to throw away the baby with bath water. We deal with the issues but the university will be developed. If he (Amaechi) does not want it in Maritime, I will take it in petroleum,” Kachikwu reportedly explained. Kachikwu also repeated his call for dialogue with Niger Delta Avengers, insisting that the crisis could not be resolved through counter military attacks by Nigeria’s Armed Forces, but through dialogue. “We must dialogue first; and if that fails, we know what to do next,” he added. He said Niger Delta people with “skills and finance” would benefit from allocation of oil blocks because it would be part of “giving back to the chicken that laid the eggs”. Kachikwu argued that he was one of those who believed that the South-South people should benefit from oil blocks because it would be part of “giving back to the chicken that laid the eggs”. Kachikwu also announced to the audience at Uyo that he had reached out to the Niger Delta Avengers for a truce with the federal government to end destruction to oil installations. After the townhall meeting at Uyo, the minister commenced tour of the Niger Delta to dialogue with representatives of the militants and other stakeholders. With the cease-fire declared by the militants as a result of the peace efforts, crude oil exports have stabilised at 1.9 million barrels per day, while government targets to achieve 2.2 million barrels per day by end of this month.

REWARD FOR SUCCESSFUL LEADERSHIP

L-R: Outgoing Chairman, Board of Directors, Custodian and Allied Plc, Chief Michael Ade Ojo; Board Chairperson, Mrs. Omobola Johnson and Group Managing Director, Mr. Wole Oshin, during the send-forth reception in honour of Ade Ojo, in Lagos…recently

DPR: Implementation of Gas Transportation Network Code Ongoing Chineme Okafor in Abuja The Department of Petroleum Resources (DPR) has disclosed that the Nigerian Gas Transportation Network Code (NGTNC), an enabler that will entrench transparency, efficiency, fairness and non-discriminatory access to gas transportation networks, was already being implemented in the country. DPR said the implementation of the code would provide for investors in gas, the confidence to invest heavily in the sector and enable Nigeria consolidate on the multiplier effect of gas on the economy.

The Director of DPR, Mr. Mordecai Ladan disclosed this at the recent Business Forum in Lagos, where he delivered a goodwill message on the status of the implementation of the NGTNC. The DPR had in 2015 said the lack of funding; infrastructure; transitioning of legacy agreements and commercial framework were major obstacles to the implementation of the NGTNC. It reportedly stated that the country’s gas industry was interested in a sector where there are multiple pipelines as against one owner; no inherent natural

monopoly; open access; hub or traders; separation of commodity and infrastructure; alternative producers; a free market driven by willing buyer/willing seller; and a guided network code. The DPR at that time also said the absence of these features were a threat to its implementation of the NGTNC. But Ladan in his goodwill message which THISDAY obtained in Abuja said the government in recognition of the potential of natural gas, has put in place various interventions to stimulate gas utilisation and monetisation. He told the audience that

reforms were initiated to re-position the gas sector and deliver on government’s key aspirations. “These aspirations include developing a viable domestic market; creating new industry out of the old oil industry; capturing economic value; generating as much revenue from gas as from oil; and ending gas flaring by the year 2020,” said Ladan. According to him: “In recent years, government has begun the implementation of a nationwide gas infrastructure blueprint aimed at connecting all key supply sources to markets across the nation.

… Raises the Alarm over Adulteration of Diesel Ejiofor Alike The Department of Petroleum Resources (DPR) has raised the alarm over adulteration of diesel in the market and vowed to clamp down on the perpetrators of the act. Speaking recently in Lagos when officials of the regulatory

agency uncovered two illegal engine oil manufacturing factories in Ikugbayi Street, Marine Bridge and Raji Rasak Estate in FESTAC Town area in the state, the Manager in charge of Retail Outlet and Marketing Department of the DPR, Mr. Okechukwu Okoro told newsmen after the exercise that clamp

down on illegal manufacturers of engine oil was as a result of series of complaints from the public. Okoro said that the regulatory agency had discovered that there was high rate of adulteration of diesel in the market. “So, we have come to see if it is true and we have found

out this to be real. Many people who supply diesel at home gave them adulterated diesel which is not from real source. People should be wary of where they get their product from, they should ensure that they get from right source because these people mix other products in the name of diesel,” he explained.

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD

INDUSTRY

Dangote’s Odessey into the Petrochemical Industry

Crusoe Osagie reviews Dangote’s $17 billion investment in the petrochemical and allied industries, highlighting the potential benefits to the economy As at last Thursday, June 30, 2016, Nigeria’s total foreign reserve stood at $26.34 billion. Placing this figure side by side with the $17billion investment sum for Dangote’s ongoing subsea pipeline, fertilizer, refinery and petrochemical projects, it becomes clear how helpless the public sector can actually be in the bid to directly drive the industrialisation of nations. Imagine if the Nigerian government were to embark on the development of an integrated crude oil processing facility such as Dangote’s, it would have to draw down nearly 60per cent of its total foreign reserve. No responsible government would approve such funding for a single project, no matter how important. Therefore, for a single operator in the private sector to take on this crucial but colossal investment, which will end the country’s age long dependence on other nations for fuel, petrochemicals and fertiliser, and possibly reduce forex demand for importation of consumables by 50per cent, such an operator must be commended and supported. There are so many indigenous billionaire businessmen dotting Nigeria’s landscape. At least three are listed in the Forbes magazine ranking of the world’s richest and several others probably richer, but cannot be on the list because of the unclear sources of their wealth. Therefore, although there are several individuals in Nigeria with the wherewithal to embark on such strategic and gigantic projects, they would not, because apart from funding and know-how, humongous gut is required to pull such projects off. Such investors must have immense belief in the Nigerian state and its future which unfortunately is scarce among many rich and privileged Nigerians. Apparently, for Dangote, a man already worth more than $20billion, it has gone beyond just making money, it is now more of a mission to prove that Nigeria indeed can achieve its potential, diversify its economy and take its position among the greatest in the world. Speaking recently with THISDAY, Dangote said he first learnt about the need to diversify the nation’s economy in 1979, but stressed that successive governments have not been able to effectively lead the country out of its dependence on revenue from a single product which is crude oil. Dangote noted that for the past 37 years or so, he has had his eyes fixed on the objective of playing a key role in the process of industrialising the country. With the massive investment in integrated cement production having reached advanced stages and Nigeria firmly established as one of the biggest cement producing countries in the world, Dangote is now looking towards petroleum refining and processing which holds the potential of dealing with the nation’s power problem and rapidly transforming the country’s industrial landscape. Power Generation Potential Recently, Vice President Yemi Osinbajo said the ongoing sub-sea gas pipeline project by the Dangote Group which will supply three billion cubic feet of gas daily had the potential of solving the problem of electricity shortage which had plagued the nation for decades. Speaking when he paid a working visit to the Dangote’s ongoing $17 billion Gas pipeline, fertiliser, petrochemicals and refineries project at the Lekki Free Trade Zone (LFTZ), he said the investment as a whole was an incredible industrial project being the largest and the most ambitious in Africa and possibly the entire world. Addressing journalists after a two-hour presentation on the entire project, Osinbajo said the gas pipeline project “is meant to supply three billion standard cubic feet of gas daily to Lagos and its axis. It will largely address power outage. That is huge when compared with our current requirement, it is about two billion standard cubic feet of gas daily. “If it can be done, it is a major asset for Nigeria. It will boost our gas supply tremendously. For

Nigeria a new economic direction in the quest for diversification of the economy, as excess products would be imported to give Nigeria the much needed foreign exchange. That is when diversification starts.

Dangote me, that is the most important project that could be done in this country. It will be a major boost for industrial development,” Osinbajo said. He explained that the sub-sea installation, estimated at N500 billion, would go all the way from Bonny in Rivers State through Ogedegbe, Olokola to Lekki and Escravos Lagos pipeline and then West Africa Gas Pipeline. In terms of security, Osinbajo said the pipeline “is secure. The pipeline is installed under the sea. It is a subsea project. It is fortified and goes into the sea. It is not what anybody can go there and vandalise with the way it is designed. It is designed to prevent vandalisation. It is designed very deep into the sea.” Noting that the project would boost power supply tremendously, he said on completion it would be a major strategic asset for Nigeria. Commenting on the refinery, he said: “It is meant to refine 650,000 barrels per day. By all projection, it is the largest in the world. It has a petro-chemical plant. It also has fertilizer plant, which is projected to be the largest in the world.” Speaking further, he said: “The refinery will take off in the first quarter of 2019. I think the sub-sea gas pipeline, which is very important project, is meant to take off in 2018. It is an incredible industrial undertaking. It is possibly the largest and the most ambitious on the continent today. It is truly inspiring to see.” In his remarks, Dangote, said the decision to site the projects in Lagos was due to the investment friendly climate in the state. “Lagos is one state that is very investor friendly and the governor himself has always been asking, what are the issues, and he normally put in place steps to resolve those issues immediately,” he said. Dangote said the Gas Pipeline Project would guarantee uninterrupted power supply in Lagos on completion, which he said would also positively increase the State’s Gross Domestic Project (GDP). Dangote further said the projects would also attract other bigger investors into the Zone. He also said the projects would benefit the local communities as at least 65 per cent of people in the catchment area would be employed, while over 1,000 would be trained. “Our target is that in the next five years or so from now, we hope and we believe that half of Nigeria’s crude will be refined and exported rather than just exporting crude to go and create jobs elsewhere,” Dangote said. The Lagos State Governor, Mr. Akinwunmi Ambode, while commenting on the investment, said the refinery, petrochemical, gas and fertiliser projects being undertaken by Africa’s richest man, Dangote, in Lagos, would significantly boost the economy of the state and Nigeria in general. According to Ambode, “First, there is a

refinery project that is ongoing, second there is a petrochemical project that is also ongoing. There is pipeline transfer project that brings gas from Bonny down to Olokola and down to Lekki and then the fourth one is the fertiliser project all in one location.” He said the projects would also be critical to the economic growth of the Lagos East and West Senatorial Districts, which according to him, will be open to massive investment opportunities on completion. Job Creation The projects are expected to create a minimum of 235,000 new jobs, both direct and indirect jobs, as it becomes operational in the first quarter of 2019. The $12 billion refinery would have a capacity of 650,000 barrels a day, driving a huge market for the refined products because in Africa, only three countries have functioning refineries (Egypt, South Africa and Cote d’Ivoire) with others importing from abroad. The Dangote refinery will be ready in the first quarter of 2019. Mechanical completion will be end of 2018 but it will start producing in 2019. When the projects fully take off in 2019, it would help the country save $5 billion currently spent annually on the importation of petroleum products. The refinery, petrochemicals and fertilizer plants in one spot according to Dangote, is the single largest project in the world. “This site is the biggest site in the world, the refinery is the biggest single refinery in the world, the petrochemicalsare 13 times bigger than Eleme Petrochemicals while the fertilizer plant will be 10 times bigger than former National Fertilizer Company. He explained that the project with the $2 billion fertilizer unit was funded through loans, export credit agencies and our own equity. Dangote explained that the diversification of Nigeria economy was long over-due and that one sector that Nigeria can focus on to rejuvenate the economy is agriculture. He stated that his investment in fertilizer is one sure way the diversification into agriculture could succeed because according to him, it will amount to little if focus is directed to agriculture and fertilizers would have be imported. He said: “Agriculture is the way to go, but a critical component of that sector is fertilizers, Nigeria has more arable land than China which now is the biggest economy in the world, we can tap into our vast land and produce what we need and even export the remaining. “By the time we complete this project, there will be opportunity to take on agriculture and say bye to poverty, because there will be jobs, no sector has more job potential than agriculture” Dangote said the project was an ambitious one and that when completed it will give

Speculations on Forex Dangote also clarified that his refinery, petrochemical and fertiliser plants did not collect as much foreign exchange from the Central Bank of Nigeria (CBN) as some people have speculated, stressing that his company raised substantial part of the forex being used in the execution of the multi-billion dollar project. He explained that the company sourced for the $100 million used in acquiring the land and raised another $300 million capital to start the project without any assistance. “Let me expatiate for you to understand so that you don’t get me misquoted. The loan for this project was taken by Dangote Industries, which is the holding company because the refinery is a brand new company and nobody will give you money for brand new company. Dangote Industries used their balance sheet to borrow the money and there is interest element that we have to be paying because we took the money since 2014. So, the interest since 2014 to date is $173 million. That is the only forex we have received from the CBN to build this plant out of $12 billion we are using to build this plant. If you look at the fertilizer plant, the forex is into two components but they are all below $600 million out of $2 billion. So, we have always been trying our best. For example, we bought the land for $100 million. Legally, we are not supposed to pay the Lagos State Government in dollars. So, we brought in $100 million and changed it and paid them the naira at that time. We also brought $300 million capital to start the work. So, we brought quite a substantial amount of our own money,” Dangote explained. The foremost industrialist cited media reports saying that his company received $161 million in 11 weeks and argued that the amount was even insufficient when compared to the amount of foreign his companies used to run their operations. “Yes, well, I don’t want to dispute the figures but even if we got $161 million in 11 weeks – 11 weeks is roughly three months; but we need about $98 - $100 million every month for the operations of Dangote Flour Mills, Dangote Sugar, Dangote Cement and diesel to fuel our 9,000 trucks. We are a company that minds our own business and we don’t complain. When the exchange rate was moved from N197 to N280, we lost $420 million and that is almost N50 billion,” he added. Dangote described himself as a proud Nigerian with no house or even a single block outside Nigeria. “Yes, I have money but I don’t have properties or even a house outside Nigeria. Wherever I go, I stay in a hotel. This means that every amount of money, we make here, we throw it back into the country. That is why we are doing all these,” Dangote said. He recalled that the issue of forex allocation to his company arose after the CBN governor visited the project site and described it as the future of Nigeria and also promised that the apex bank would render whatever assistance he would require. “Really, the projects we are doing here are to help diversify the economy of Nigeria and they are the largest single project anywhere in the world – be it fertiliser, gas pipeline, petrochemical or refinery. This is the largest single refinery in the world. The petrochemical that we have is 13 times bigger than the Eleme Petrochemical; What we are doing in terms of fertiliser is 10 times of NAFCON. It is the largest fertiliser plant in Africa,” he said. In a presentation, the company stated that Nigeria would save $17.5billion in forex earnings from the project.

T H I S D AY • TUESDAY, JULY 5, 2016

BUSINESSWORLD

INDUSTRY

LCCI Lauds New Petroleum Products Pricing Regime Crusoe Osagie The Lagos Chamber of Commerce and Industry ( LCCI) has commended the federal government’s recent petroleum product pricing regime, noting that the sector has experienced remarkable progress with the new pricing reforms in the oil and gas sector. The president, LCCI, Dr. Nike Akande, explained that the state of the sector has a significant bearing on the economy because the nation needs energy to power its economy, maintaining that it

could also be a major driver of economic diversification efforts. The LCCI boss during a business clinic organised by the chamber’s petroleum downstream group, tagged “Nigerian Petroleum Products Pricing and Forex Liberalisation: Implications and Sustainability”, said theforum was timely and significant because it provided stakeholders with an opportunity to discuss and brainstorm on the implications of recent reforms in the foreign exchange market on the petroleum downstream sector. “We would also be sharing

perspectives on the new pricing regime in the sector. As we all know, the sustained decline in global oil prices since 2014 has put the nation in a difficult position and consequently led to various fiscal and economic challenges such as the drop in foreign earnings, decline in foreign reserves, financial bailout for many state governments and unstable business environment,” she said. According to her, over the years, the nation’s petroleum industry has witnessed several setbacks such as: shutdown of domestic refineries, vandalism

of pipelines and recurring scarcity of products, saying that there have been several discussions about reforms in this sector. “The good news is that remarkable progress has been made with the recent pricing reforms. I have no doubt that this forum would provide a platform for all stakeholders in the downstream petroleum sector to deliberate on critical issues affecting investments and operators in the oil and gas industry and stimulate ideas for sustainable growth. This has become necessary in the light

of recent policy developments and the emerging context for business operations,” she added. Also speaking at the event, he Chief Executive Officer, Ayo Teriba Associates, Mr. Ayo Teriba, said Nigeria would not have been greatly impacted by the dwindling global oil prices if the nation had diversified its economic revenue base away from oil. He said oil producing countries are already finding alternative means to diversify their economic revenue base by investing heavily on Infrastructure

and creating enabling business environments to attract Foreign Direct Investments (FDIs), urging the managers of the economy to follow suit to make Nigeria a more attractive investment destination. According to him, “The crisis is happening because we have neglected opportunities in the capital account, saying the way forward is for the country to regain competitiveness by investing in infrastructure development to become Africa’s top investment destination and deploy macroeconomic and sectoral strategies

IITA Lifts over Four Million People in Africa Out of Poverty Crusoe Osagie with agency report Evidence from research have shown that the International Institute of Tropical Agriculture (IITA) had by 2015, contributed to lifting over 4,306,621 people in sub-Saharan Africa out of poverty through the adoption of improved agricultural technologies developed by the Institute and its partners. This is the evidence from four completed case studies that were presented by IITA Director for Eastern Africa hub, Dr. Victor Manyong during a seminar titled ‘Tracking Poverty Reduction Associated with IITA Technologies’ at the hub offices in Dar es Salaam, Tanzania recently. Manyong said poverty reduction was one of IITA’s key performance indicators and the studies are part of efforts to track and document the Institute’s progress towards achieving its vision of lifting 11.6 million of population out from poverty by 2020 as spelt out in its refreshed strategy. Two studies conducted this year in Nigeria on the impact of adoption of improved cowpea varieties and drought tolerant maize varieties (DTMV) found that the two technologies had contributed to getting an estimated three and a half million people out of poverty in Africa’s most populous country. The study ‘Impact of adoption of cowpea germplasm on poverty reduction in Kano State, Nigeria’ used DNA tests to link the improved cowpea varieties being cultivated by farmers to the IITA collection at its genebank in Ibadan, Nigeria. By 2012, 58% of cowpea farmlands was cultivated to improved varieties with yield gains of 254% over local varieties. The study found that 884,241 people had been lifted out of poverty cumulatively between 1980 and 2015. It also established that the nutritional status of children below five years was higher among those who had adopted the technologies compared to the non-adopters. Meanwhile, the adoption of drought tolerant maize introduced in Nigeria 10 years ago had removed from poverty 2,668,000 people according to

the study ‘Impact of adoption of DTMV on poverty reduction in Nigeria.’ The other studies conducted in 2015 included a baseline study of the Support to Agricultural Research for Development of Strategic Crops in Africa (SARDSC) and an impact study of the Consortium for Improving Agriculture-based Livelihoods in Central Africa (CIALCA) which collectively showed further that over 750,000 people were lifted out of poverty in association with IITA technologies. The SARD-SC baseline looked at the adoption of improved cassava varieties introduced by IITA and partners in Zambia, DR Congo, Tanzania, and Sierra Leone. It established that 194,469 farmers were lifted out of poverty from growing the new high-yielding varieties. Further disaggregation of the results by gender showed that more female-headed households had moved out of poverty than male-headed households. The CIALCA initiative contributed to lifting 559,810 people in Burundi, eastern DR Congo and Rwanda out of poverty. CIALCA had developed and disseminated a complex set of technologies including improved crop varieties combined with crop management practices, integrated pest management practices and marketing strategies. Productivity levels were found to be higher among the adopters compared to nonadopters. Manyong said while these studies had shown that the adoption of technologies generated by IITA and partners had contributed significantly to poverty reduction the impact would have been higher if more people had adopted the technologies. “For example, from the sample surveyed in DTMVtarget areas of Nigeria, about 53% of households knew about the technology but only 44% had adopted. The question therefore is why did some of those who knew about the technology not adopt it?” Manyong asked. “Some of the reasons behind this could be low accessibility and availability of the seeds—these are adoption constraints that we need to address for more impact.”

REAWAKENING THE TEXTILE INDUSTRY

L-R: Chairman, Africa Fashion Week Nigeria & London, Prince Dapo Adelegan; Minister of State for Industry, Trade & Investment, Mrs. Aisha Abubakar; Founder/CEO, Africa Fashion Week Nigeria & London, Ms. Ronke Ademiluyi and Commissioner for Finance, Lagos State, Dr. Mustapha Akinkunmi, at the inaugural edition of the Africa Fashion Week Manufacturing Conference in Lagos…recently

SON Blames Frequent Fire Incidents on Substandard Wires and Cables Olakiitan Victor in Ado Ekiti The Standards Organisation of Nigeria, (SON), has raised the alarm over the influx of substandard cables and wires in the nation’s market. The Head of Ekiti state office of the agency, Mrs. Serah Idowu, said in a statement in Ado Ekiti, that such fake cables are now common in most markets, thereby raising fears of possible fire outbreaks in homes and offices if not curtailed. She said the alarm had become necessary in view of the threats such fake products

posed to lives and property of unsuspecting members of the public. According to her, out of 24 companies whose electrical products were tested and examined by the Laboratory and Compliance Unit of the agency in Ekiti State, only one of them scaled through. She threatened to make public, list of the erring 23 companies if they failed to withdraw all their electrical items from the market and stop further production of such substandard products. The SON boss disclosed

that a meeting had already been scheduled with those behind the companies and their distributors where they hope to receive the last warning, as well as obtain undertakings from them not to further put the lives of Nigerians at risk. She warned that after the meeting, wares of recalcitrant ones would be confiscated henceforth by the agency while their owners would be made to pay a minimum of N1m cost of destruction to the Treasury Single Account (TSA) Compliance Account of the agency.

Idowu disclosed that SON was working out modalities that would make the distribution of certain category of industrial and household appliances such as gas cylinders and fire extinguishers, the exclusive preserve of the various state Fire Services. She expressed worry that most of the outlets where such high-tension electrical items are sold do not have the required safety precautions, while many of those that trade in them do not have any formal training in safety matters like those who work in Fire Services.

U-Connect Launches HR Recruitment Platform Emma Okonji Following the declining global oil prices, which has continued to exert downward pressure on overall macroeconomic structure of the Nigerian economy, thus affecting organisational growth and profitability, U-Connect has launched a solution that

will help employers recruit the right personnel that will drive growth in organisations, while cutting down on costs. The solution, known as Gr8jobsng, seeks to bridge the gap between Jobseekers and employers and give them the ability to reach their full potential. The Gr8jobsng platform provides an enabling

structure that allows Job seekers the opportunity to present themselves in efficient and effective manner whilst capturing the attention of different employers. It also allows employers to effectively and efficiently select Job seekers that embody the values, competencies and experience, they are looking for. The

platform is a key enabler to solving the recruitment and career progression challenges of both the employer and the jobseeker, which will positively impact on them and the larger Nigerian economy. The solution is tailored to address the needs of Small and Medium Scale Enterprises (SME’s).

T H I S D AY • TUESDAY, JULY 5, 2016

PROPERTY & ENVIRONMENT Residential Property Investors Advised to Work with Trusted Professionals Serious investors in residential property are expected to recognise that the nation’s market has some good, many terrible, and marginal properties. Their task, the CEO of Fine and Country West Africa, Maryanne Udo Okonjo says, is to sieve through the marginal and terrible ones towards identifying the great opportunities, Bennett Oghifo reports

rent like most investors who bought over priced properties. Average rental yields for most investments are approximately 6-8%.

very serious investor should recognise, before committing to a purchase, especially in a market with numerous shades of opportunities, that there will always be some good, many terrible, and other marginal

Flexible payment plan and low deposits… Low deposit required to reserve Oakwood Residences, gets you into the property ladder in a prime location with minimal stress. The ability to pay over the construction period of approximately 18 months makes a huge difference to some investors ability to get onto an opportunity. Investment is usually about sacrificing, and money usually follows vision. Most investors have found from experience that when they commit to an investment, they become more disciplined about their spending, and even become more creative about finding business opportunities to generate the income needed to complete their property investment which they’ve committed to.

properties. The Chief Executive Officer of Fine and Country West Africa, Maryanne Udo Okonjo stated this while giving ‘Five Success Factors for a Residential Property Investment’, recently. According to the property expert, “Your task as an investor is to dig through the marginal and terrible ones towards identifying the great opportunities. It requires asking the right questions, working with trusted professionals and educating yourself through independent research.” Investment module… The Fine and Country CEO presented a real life residential project, Oakwood Residences, located on Cooper Road in Ikoyi, Lagos, as a case study to analyse the key success factors that make a good residential investment. She gave five key reasons to investing in a great property: Prime Location… Ikoyi is still one of the most desirable residential location in Nigeria for the affluent and aspirational class. It will always be an appreciating location as far as real estate prices go. How many times have you heard stories of someone who bought a property years ago and today the property is worth significantly in excess of what they paid. In prime locations, when the market rebounds, typically the rate at which prime locations grow exceed other locations exponentially. In addition, Cooper Road in particular is still one of the best preserved roads, retaining its old colonial charm

Oakwood Residences, Cooper Road, Ikoyi

and serenity. This gives it an added value over other busy or not so favoured locations even within Ikoyi. Low price, great value, immediate equity… Buying off-plan typically gives you an opportunity to buy below the actual market price upon completion. In some cases, developers release an early bird investors pricing to kick start the project, this is usually the time to get the most benefit and room for growth as prices are usually increased as more properties are sold. This property has not yet been launched, and is been currently offered at below average Ikoyi prices, plus discounted further for early

bird investors. We think it has a lot of room for growth- at least 30-40% by completion stage. This is a hidden secret for astute investors. It beats having your cash depreciating in a savings account or on low yield assets. High rental yield potential… Rent is estimated at N13-15m amounting to approximately 10-12% yield of current early bird and estimated completion prices. Because it’s priced below market price, you can charge a sensible rent and get good quality tenants rather than have the property vacant for long periods of time while waiting for an unrealistic

Good title… Good title is the bedrock of any real estate investment. You don’t buy bricks and mortar, you buy a secure investment, that contributes to your wealth creation plan. Peace of mind, a sense of financial security and freedom to live the life of your dreams are some of the reasons people invest in real estate, and a good title is the foundation of all those aspirations. At Fine and Country, we stake our brand on this particular factor. Oakwood Residences comes highly recommended and is an excellent investment opportunity for any serious or aspiring investor, whether to live in or to buy to let. For a limited time, on offer are a couple of units of 4 bedroom apartments and only 1unit of 5 bedroom Duplex Penthouse in Oakwood at an early bird investor price with 20% discount of the full offer price.

Nigeria Joins over 74 Others for Real Estate, Lafarge Africa Launches Logistics Academy Investment Expo in Germany Lafarge Africa Plc, has launched the three regions of Nigeria recorded as well as the urge Nigerians will join over 18,985 visitors, including decision makers, to the 19th International fair on Real Estate and investment scheduled to hold from October 4-6, 2016 in Munich, Germany. Niche PR & Events, a Lagosbased public relations company is working closely with MESSE MÜNCHEN INTERNATIONAL and Trade and Fairs Consulting, Germany to recruit participation from Nigeria. Niche PR will recruit participants from Nigeria, handle all logistics required to ensure that Nigeria is well represented at Expo Real 2016. To attract needed B2B to the Nigerian participants, Niche PR has invited key industry players to sponsor the Nigerian exhibition booth under the African pavilion. The essence of having a booth dedicated to Nigeria is that 75% of visitors are decision makers and will visit the booth to discuss and conclude businesses. In addition there will be forums with 80 conferences, panel discussions and symposia

L-R: President, Real Estate Developers Association of Nigeria, Mr. Ugochukwu Chime; Managing Director, Platinum Mortgage Bank, Mr. Emmanuel Mbaka; President, Mortgage Bankers Association of Nigeria, Mr. Femi Johnson; and Executive Director, Policy & Strategy, NMRC, Dr. Chii Akporji, during a summit on affordable housing in Abuja… recently

with 400 recognised experts discussing bank financing and refinancing among other topics. Expo Real is the largest business to business expo for property and investment in Europe since 1998. The focus this year will be on commercial property: office, retail, hotel, logistics, health, infrastructure

and residential property for institutional investors. Profile of attendees include real estate developers, architectural and planning firms, lawyers, investment companies, asset managers, real estate financiers, universities and colleges, banks, fund companies, tax advisors, mortgage finance institutions and property consultants.

a Logistics Academy in demonstration of its unwavering commitment to safety, officials of the company have said. The Academy that was launched at the Ewekoro cement plant of the organisation recently was established to train and improve the skills of drivers, transport company owners, employees and other stakeholder groups involved in the logistics process of its business. “The Academy was conceptualised for launch in Nigeria to move the operations of Lafarge Africa Plc and its key stakeholders to a proficient level, towards impacting the business positively and achieving the desired Operational Performance Improvement. It will focus on 3Ps - People development, Process efficiency and Performance improvement - which are driven by the pillars of drivers training and development, Contractors/ Transporters development, and Logistics Staff training and development,” they said. With four locations across

where Lafarge Africa Plc operates, Lafarge Africa Logistics Academy has a national spread that will impact the entire country. Relevant stakeholders, government representatives, agencies and organizations including the company’s transporters and truck drivers, road transport workers, and representatives of Federal Road Safety Corps, Ogun State Traffic Compliance and Enforcement Agency (TRACE), Lagos State Traffic Management Authority (LASTMA), and Vehicle Inspection Officers from Ogun and Lagos States were in attendance at the launch. In his welcome address, the Group Managing Director/CEO of Lafarge Africa Plc, Mr. Michel Puchercos recalled that to realize the company’s ambition to be the reference point in Road Transport Safety in Nigeria, a Drivers Academy was launched in May 2014 for the engagement of certified drivers, who would have passed through a systematic qualification process. He remarked that the successes

to continue to improve its safety records culminated in the launch of the more inclusive and far reaching Lafarge Africa Logistics Academy. He further explained that the academy is in line with the company’s vision to build a stronger Nigeria safely, ethically and sustainably through innovative construction solutions. “One of the ways to achieve this is through the safe delivery of our products across the country. We commit to operational excellence, enhanced quality of logistics services, strong road transport safety management, and attainment of our overall safety objective of Clean, Green, Zero Harm” he stressed. In his presentation, the Logistics Director for Lafarge Africa Plc, Mr. Hans Mielants revealed that “majority of accidents and fatalities that occur on the roads are avoidable. Key logistic stakeholders must continue to develop the requisite skills and constantly enhance their levels of professionalism. Being a leading cement and building solutions provider,

T H I S D AY • TUESDAY, JULY 5, 2016

PROPERTY & ENVIRONMENT

Maryland Mall to Provide Stress-free Shopping Experience A new experience in shopping is unfolding in the Maryland axis of Lagos with the inauguration of a mall developed there by Purple Capital Partners Limited (PCPL), a specialist investment firm with business areas in principal investment, private equity and real estate. Purple Capital Partners began financing and developing the N5 billion retail, lifestyle and entertainment complex barely three years ago. Industry players said with this addition, Lagos was fast becoming Africa’s real estate and retail capital. “Despite the plethora of markets, street side shops and grocery stores across the state, social evidence suggests that residents still clamour for the modern, stress-free shopping experience.” Declaring the Maryland Mall open for business, Mrs. Onikepo Akande, President, Lagos Chamber of Commerce and Industry (LCCI) said: “It

is my sincere belief that this new mall will help to expose and grow the manufacturing and commercial potential of Lagos state and by extension, the national economy. “Indeed, retail is one of the cornerstones of trading and investment, and Purple Capital, the developers of Maryland Mall, have done extremely well to give Maryland a new lease of life through this retail investment.” The official commissioning of Maryland Mall is coming barely two months after Purple Capital attracted additional funding for the retail development in the form of a N800 million investment from asset management firm, AXA Mansard Investments Ltd. As Nigeria’s industrial and commercial capital, Lagos is expected to lead the national count for modern shopping malls over the next decade, in tandem with the city’s fast

growing population, currently put at anywhere between 17 and 20 million people. Mr. Omotola Mobolurin, Chairman of Purple Capital Partners Limited said: “I am delighted about the safe arrival of this new retail, lifestyle and entertainment infrastructure, with the capacity to provide merchants and shoppers with amenities and services that befit the state’s mega-city status. It is particularly gratifying that the construction and financing for this retail development is being

concluded on time and within projected funding estimates.” Located where the defunct Maryland Shopping Center was once located, Maryland Mall sits on one of the most important arterial routes in Lagos today, with an estimated 5,000 cars passing through every hour. The mall sits on a total land size of 7,700sqm and will have the first dedicated underground car park within any mall in Nigeria. It will play host to a mix of local and international brands anchored by Shoprite,

The Place restaurant, Stanbis IBTC Bank, amongst other retail, hospitality and entertainment brands. The exterior of the mall will be a 550 square meter LED screen, the largest in Sub-Sahara Africa. This unique feature will set it apart from any other retail complex in Africa’s most populous nation. Currently, only 2% of Nigerians shop in formal retail supermarkets compared to 60% of South Africans, 30% of Kenyans, 4% of Ghanaians and

2% of Cameroonians. The Maryland area aptly illustrates the various realities of city life. Located right in the middle of mainland Lagos, Maryland has been a residential district and a hectic hub of social activities for decades: it is also an economic and commercial nerve center; a major intersection connecting citizens and visitors alike to the major thoroughfares across the city, and a perfect exhibit of the city’s quest for affordable, urban development.

Ajayi: Propertygate Recorded Significant Gross Revenue Increase in 2015 Fadekemi Ajakaiye Propertygate Development & Investment Plc., recorded notable improvements in the various financial indicators with a significant increase in gross revenue last year, compared to 2014. The Managing Director of Propertygate, Adetokunbo Ajayi stated this in his report to the company’s annual general meeting, held in Victoria Island, Lagos, recently. The company recorded success in its financial results for the year ended December 31, 2015, said Ajayi, and that other areas that witnessed improvement in the year compared to year-end 2014, included gross profit, profit before tax, net assets and retained earnings. On the company’s activities in its operational environment, Ajayi said, “As responsible corporate citizen, Propertygate is committed to giving back to the communities around us by creating long lasting impact in our environment. In the year under review, we began the construction of a 372 meters long road starting at Olusi road and connecting Kolade Abayomi Street, Sangotedo, Lekki Peninsula. The road is the first of its kind in that area, having a standard major drainage as one of its features. “In the year under review, the Board of Directors continued to maintain its high preference for quality, excellent and expertise to further the course of the company. We have been relentless in our aspirations to preserve credible corporate governance practices, as this is important to actualisation of the company’s objectives,” he said. He said despite the prevailing economic challenges, Propertygate would continue with her best to remain reliable and dependable. According to Ajayi, the global economic environment of 2015 witnessed challenges from Euro market, the Brazilian and Russian market recession, slow growth in

the Chinese economy, decline in global oil price and other imbalances. This led to a global growth rate of 2.8% as against 3.6% forecast by the International Monetary Fund (IMF) in its World Economic Outlook report of 2015, he said. Nigeria, now more integrated into the global economy, suffered the impact of this global trend. In addition, the GDP sluggishly increased by 2.8% in the year, down from 6.2% recorded in 2014, he said. He stated that government’s revenue suffered a huge blow due to decline in oil price, the country’s major export; while inflation closed at 9.6% by year end. The performance of the Nigerian Stock Exchange in 2015 was very poor, as shown by the market indicators. The economy was also negatively affected by the volatility of the naira and dwindling foreign currency reserve, he said. He stated that the naira suffered progressive decline in value in spite of the various measures adopted by the Central Bank of Nigeria. During the year under review, the challenges undoubtedly undermined the performance of the Real Estate sector. While development activities continued in traditional commercial real estate cities such as Lagos and Abuja, operators exercised restraints with respect to new development, he said. He said developments for sale faced tough battle for patronage from shrinking markets. The real estate investment markets across the spectrum were not spared; growth slowed down, rental rates suffered a drop and void increased. Availability of development finance for projects took a deep, as traditional lenders struggled with their own challenges; and for those willing to fund, sluggish demand undermined projects’ viability. Interest rates for developments averaged about 25% per annum throughout the period.

Architectural presentation of The Empire Luxury Apartments, VI, Lagos

Retail Industry Could be Highest Deluxe Residences Introduces Empire Super-luxury Employer of Youths, Says Broll The Apartments Roundtable Fadekemi Ajakaiye The nation’s retail industry has potential to be the highest employer of youths, a roundtable of experts converged by Broll, property services company, has said. This was one of the outcomes of a roundtable Broll hosted for retail industry experts in Ikoyi, Lagos, recently.The event tagged “Retail Industry: 10 Years from Now”, had in attendance executives from Broll Nigeria, real estate financers, developers and retail investors. One of the panelists, Funke Okubadejo, Director Actis, said the structure of the economy needed to be diversified. “Government relies heavily on oil revenue and has not tapped into other productive sectors of the economy such as retail. The retail sector presents a viable opportunity for youth employment and it behooves on retailers to bring this information to key decision makers in government.” According to the Chief Executive Officer of Broll Nigeria, Bolaji Edu, “despite a challenging environment, Nigeria still holds promise for investors who are willing to take a long-term approach on investments.” He stated that “The outlook for the retail sector is largely dependent on economic re-

forms as well as the lifting of foreign exchange restrictions.” Gavin Cox, Retail Portfolio Executive, Broll Property Services Ltd, Nigeria, noted that “with the emerging economic status; favorable demographics- large, young, growing, urbanizing population; opportunities for investment and growth exists in the African retail environment.” Adeniyi Adeleye, Head, Real Estate Finance, West Africa, Stanbic IBTC, the facilitator of the forum managed the panelist discussion, which included various speakers such as Michael Chu’di Ejekam; Retail Investor, Opeyemi Ajayi; Executive Vice President, Genesis Deluxe Cinemas, Tolu Sokenu; Investment Principal Actis, Eddie Mcdonald; Chief Executive Officer Resilient Africa, Kofi Abunu; Chief Development Officer, Food Concepts Ltd-Chicken Republic, Obi Nwogogu; Principal, Africa Capital Alliance, amongst others. Panel discussions centred on retail in Nigeria, the opportunity for retail development, the next generation of retail malls and sustainability in secondary markets.Some of the discussants pointed out that the future of the retail industry was in the development of a formal retail market outside prime locations in core cities.

Bennett Oghifo Leading Lagos real estate development firm, Deluxe Residences has introduced The Empire, Victoria Island, a choice of two super-luxury apartments – The Empire Royale Apartment and The Empire Vogue Apartment. Both apartment complexes, located on Water Corporation Drive, off Ligali Ayorinde Victoria Island, are iconic structures that offer panoramic views of the Atlantic Ocean and the nearby Eko Atlantic Mega City project, are currently under development. The Empire Royale comprises four blocks of 56 units of luxury three-bedroom ensuite apartments with maid’s room. Each block consists of 14 ensuite apartments with maid’s room in a gated estate. Equipped with an elevator, main and rear staircases providing good access to the apartments, Empire Royale is a dream come true for those who desire serenity, space, and splendor. Looking up, residents will behold a magnificent atrium in the center of the edifice designed for ventilation, light and aesthetics. Looking out, they can enjoy panoramic views of the ocean shorelines and other exotic views from virtually every

room. According to the General Manager, Corporate Services of Deluxe Residences Limited, Eka Ekwem, “every space in the Empire Royale was carefully designed with Royalty as the main theme. Every piece in the apartment tells a story, with the finest of materials, artistic touches and craftsmanship. At Deluxe Residences, we are forward-thinking; it is Customer-First for us, and the customer wants a blend of style, exclusivity, and luxury. The Empire Royale Apartment provides this and even much more.” She added, “Ultra-modern design, cutting-edge facilities, spacious recreational hub, swimming pool, gazebo, and gym, are all included in this facility which is built to meet the modern lifestyle needs of the residents.” “Empire Royale is the right choice for ultra-luxury living. With rich landscaping, luxury amenities, and modern recreational facilities, it provides a resort-style living exclusively for the residents,” she concluded. The Empire Vogue Apartments are three wings of apartment complexes strategically arranged in a U-shaped pattern – consisting of one block of 80 units of luxury one-bedroom ensuite apartments on 11 floors.

T H I S D AY • TUESDAY, JULY 5, 2016

PROPERTY NEWS

Ebonyi, Chinese Company Partner on 10MW Solar Power Plant Akinwale Akintunde Ebonyi State Government has sought partnership with a Chinese firm, CAMC Engineering Company Ltd, in the area of power, agriculture,mining, manufacturing and health. Governor David Umahi, while receiving a delegation from UNIDO and CAMCE at the Governor’s Lodge in Abakaliki on Wednesday, said “On the issue of power, hospital, mining,agriculture,industry we are very much interested.” He specifically told the officials of the Chinese company led by the Director-General, Yu Tao, that his administration would be highly delighted if they could build a 10MW solar plant in the state. “We will like if we can get like 5MW to 10MW solar plant to light up the streets in our towns. This is very important to us because we need to extend business hours and check crimes in the state,” the governor said. Umahi,who described Chinese investors as very reliable and dependable, thanked the United Nations Industral Development Organisation for being another strong development partner

assisting the state in various sectors like Rice mills,ICT and provision of medical solar lamps Adding that the Chinese are very prudent in management, he assured all intending investors of safety and conducive environment. His words, “We find it very fascinating working with the Chinese because they are very serious-minded people. They are not extravagant. When I gave some bridges to some Chinese to build for us, they brought certain kinds of equipment . So people started texting me, asking ‘are these not multinational companies? Why is it that their equipment are not reflecting this?’ “I said to them wait for them to start work and see what they will produce. And so when they started, people, including some in government, began to wonder that a company that can do quality jobs like Julius Berger is in Ebonyi State.” Umahi,who had earlier noted the giant strides of his administration particularly in the provision of electricity and street lights across the state, described Ebonyians as very honest and hardworking people.

He however told the team which was led to the meeting by the UNIDO Country Representative, Dr. Chuma Ezedinma and the Managing DIrector of UrbanTech Engineering Ltd, Kingsley Agha, that they needed to quickly tidy up all arrangements to enable them start work on the power, agriculture,mining, manufacturing and health sectors. He added, “Let me mark it that the only bad behaviour

we have is that we are very much in a hurry. We have no patience at all when it comes to development. We don’t want projects that will be on the table for six months before takeoff. We want to start moving as quickly as possible.” Earlier, Ezedinma who introduced the delegation, said he was pleased with Governor Umahi’s efforts to develop the state. He mentioned the 5MW Rice Husk Power plant

as one area the governor had consistently been on his neck to get started. Also,Agha, who gave reasons for the visit, praised Engr. Umahi and Ezedinma for their desire to open up the South-East to the rest of the world. He asked Governor Umahi to visit the head office of CAMCE in China for a first hand information on the capacity and capability of the Chinese engineering giant. Tao, after presenting a gift to the

governor, had also explained that they were in Ebonyi to partner the state in the area of agriculture,mining,hospital and industry. He described Ebonyi State as the best in the country in terms of security, judging from its peaceful disposition and conducive environment for investors. He lauded governor Umahi for taking the state to a greater height through his development initiatives.

The Dynamics of Architecture in Contemporary Society Charles Maduka Shelter is next to Food, with water, in the order of the basic necessities of life. However, recent classification included sanitation, education and healthcare. According to Wikipedia, ‘The evolution of architecture traces changes in traditions, regions and over-arching stylistic trends and dates. The saying goes that,’ the only thing that is constant in life is change’ is suitable in this context. Architecture is life and it changes in response to the forces of style, technology, economy, beliefs and values. When compared with fashion it is never static but continues to evolve in response to tastes and trends. The famous British contemporary architect, Sir Norman Robert Foster described architecture as an ‘Expression of Value’. Though architecture has a generally accepted description architects and artists had at various times however, used buildings to express their individual values and beliefs. According to Walter Gropius, one of the pioneers of the profession, ‘There is no finality in architecture, only continuous change’. Furthermore, architecture cuts across borders but varies in the perceptions of designers. In the year 2012, the prestigious pritzker architecture award was won by a Chinese architect named Wan Shu. He is the first Chinese citizen to win the award .Wan Shu is arguably the greatest Chinese architect. His style of architecture combines traditional materials with modern design, pushing against the norms of the current Chinese architectural practices. However, in 2014, a Japanese architect, Shigeru Ban was named the year’s laureate of the Pritzker Architecture Prize.

Though best known for such projects as the Cardboard Cathedral in New Zealand and the Pompidou Metz in France, the world acknowledges his pioneering use of cardboard in disaster relief projects. His cardboard architecture had touched many lives by providing a quick, low cost, recyclable and protective shelter for people who had been displaced. His cardboard architecture option expresses a new dimension in the dynamics of architecture. It also emphasizes the fact that the basic function of architecture is to protect man from the harsh realities of weather. The chairman of the 2014 Pritzker architecture award, Peter Palumbo described Shigeru Ban as a man of profound knowledge of his subject with emphasis on cutting- edge materials and technology, total curiosity and commitment, endless innovation, an infallible eye and an acute sensibility. At present, there are many designs of iconic buildings of the future with awesome intelligence and characteristics. In the year2008, David Fisher came up with the proposal for a Rotating Tower in Dubai, United Arab Emirate. According to the designer, the building will be constantly in motion, changing its shape as it rotates. However, a recent proposal is the 360- degree rotating tower designed by a Taiwanese industrial designer Shin Kuo. His concept is also known as Turn- to –the – future which he developed as his thesis project, at the San Francisco Academy of Art University. According to Shin, the concept is a horizontally rotating apartment building that combats obstructed window and mundane views with a 360 degree, twenty – seven storey vistas.

L-R: Ebonyi State Governor, David Umahi; Director- General of China CAMC Engineering CO. Ltd, Yu Tao; Managing Director of UrbanTech, Mr. Kingsley Agha; and UNIDO, Country Representative, Dr. Chuma Ezedinma during a visit to the governor by officials of the Chinese engineering company in Abakaliki… recently

National Bio-Safety OPIC Advises Prospective Seeks Collaboration with Buyers of Land to Conduct EHORECON on Pollution Checks OPIC is thus undertaking Control Estate practitioners, industrialists and other prospective ratification exercise on punitive Fadekemi Ajakaiye

Concerned by the growing food poisoning and diseases in the country, the Registrar of the Environmental Health Officers Registration Council of Nigeria (EHORECON), Dominic Abonyi has revealed that Environmental Health Officers will always ensure the pursuit of food safety through non-contamination or pollution. The Registrar stated this when the Chief Executive Officer of the National Bio-safety Agency paid him a courtesy visit in Abuja, recently. According to Abonyi, the Council has great interest in bio-technological approach to disease prevention and control, adding that in as much as National Bio-safety could help people in food production and help people in vaccine production also in health, then, “the Council can derive benefit in rolling back all the diseases that are scourging man through environmental insults.” He opined that the primary mandate of the Council is to determine who could be called an environmental health practitioner and that the Council keeps a register of practitioners and facilitate

training and certification of such individuals and also monitors the practice and regulates it for the betterment of man. Earlier, the Chief Executive Officer, National Bio-safety Agency, Mr. Rufus Ebegba said theirs was to ensure that the practice of modern bio-technology does not have adverse impact on the conservation and sustainable use of biological diversity. According to the Bio-safety boss, when looking at the issue of environment “it is to ensure that genetically modified organisms do not become super organism and are not created to distract the environment by applying the ecosystem.” He explained that the role of the Agency was to regulate and ensure that the law was complied with, to this regard, and by extension, the law and the Act has created an enabling environment for Nigerian scientist to use bio-technology to improve the agricultural sector and also to produce raw materials for industrial purposes. It also enables the medical field to also get novel materials that can be used to enhance the medical field to produce drugs like the insulin, being used for diabetes.

buyers of landed properties in Ogun State have been advised to always conduct proper checks before committing funds and developing the property. The Special Adviser/ Managing Director, Ogun State Investment Corporation (OPIC), Mr. Babajide Odusolu gave the advice while on an inspection of OPIC Estate, Agbara/Igbesa where massive encroachment were discovered at the boundaries of OPIC’s Estate. Odusolu said only proper title checks could promote safe, secure, genuine land purchase and building approvals. The Managing Director ordered OPIC surveyors and managers to regularly conduct inspection patrols and keep surveillance of OPIC lands. He enjoined staff to be on the alert to promptly prevent encroachment. In line with this directive, OPIC Management had worked out an efficient supervisory method that would ensure effective security of OPIC investments and opportunities, and also to streamline sales of OPIC land application forms to members of the public to guard against abuse, illegal allocation and encroachments of diverse nature.

terms alone, he said. “Anyone who genuinely proves to have unwittingly purchased land from illegal land grabbers would be required to ratify such, paying a penal rate of 25% premium on OPIC’s prevailing rates.” In addition, OPIC is introducing a registry for building material suppliers on its Estates to have proper monitoring. On the development of illegal structures at OPIC’s Agbara Estate, Odusolu directed the enforcement team of the organisation to embark on a full scale demolition exercise of all structures illegally built on lands in OPIC Estate, Agbara/ Igbesa. The team had previously marked for demolition, structures built on such illegally acquired lands and others flouting the Corporation’s allocation and planning regulations. The Managing Director gave this order during an official tour of OPIC Estate, Agbara/ Igbesa where he inspected area 1 (Jubilee Park/residential area), Areas 2 and 3, and the Agbara – Ijanikin Lagoon link. He condemned the activities of illegal occupants/ private estates, block making industries and illegal trailer parks, which are considered

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

T H I S D AY •TUESDAY, JULY 5, 2016

BUSINESS/MONEYGUIDE

CBN, NITDA to Collaborate on Data Protection Ugo Aliogo The Nigeria Electronic Fraud Forum (NeFF) said it has recommended that the Central Bank of Nigeria (CBN) and the National Information Technology Agency (NITDA) work together in pursuing the enactment of a Data Protection Law for Nigeria. The Sub-committee of NeFF made the recommendation to the central bank. The Chairman of NeFF, Mr. Dipo Fatokun who said this in Lagos, during the unveiling of the forum’s 2015 annual report, restated the commitment of the federal government to forge alliance stakeholders in the e-payment value chain to curb electronic fraud in the payment system. “The committee submitted its

report yesterday (last Thursday) and has been given further work to come up with policies that will assist the banks and other players in the financial services industry on cloud computing,” Fatokun said. According to him, another committee had been set up to consider the issue of fraud at merchant locations in terms of how some merchant may collide with some fraudsters, or fraudster using their channel to commit fraud and how such merchants and acquirers (banks) can protect themselves. He added: “We are monitoring what is happening in the payment space. If the attempt is increasing, and the losses are decreasing, it means that the activities of regulators and collaborative organisations like

NeFF are actually yielding the expected result.” Fatokun noted that lack of knowledge was the main reason why the spate of electronic fraud has not abated, adding that the forum considered it necessary at its quarterly meeting to educate members on activities of fraudsters. “The normal strategies is that the forum comes together to discuss, debate and agree, then go back with policy formulation which is escalated to the committee of governors of the CBN. They will consider the type of proposal that we bring that could make the payment system safer. If they approve it, we will then issue it as a policy circular to the industry. This will become something that is binding on everybody.

Institute, Others Highlight Likely Implications of Brexit on Nigeria Peter Uzoho In the wake of British vote to leave the European Union (EU), analysts have highlighted the likely implications of the development on the Nigerian economy. Speaking at a breakfast session organised by the Chartered Institute of Bankers of Nigeria (CIBN), titled: “Implications of Brexit on Nigerian Banking Industry,” held in Lagos, participants highlighted economic slowdown, consumer market reactions, investors’ relocation, and reconsideration of relationship with Britain as possible fall out of the British withdrawal from the European Union. Presenting the Communiqué at the end of the session, the Registrar and Chief Executive,

CIBN, Mr. ‘Seye Awojobi said: “Economic slowdown is an issue, the issue of consumer market and their reaction is a possibility. The issue of investors having to change their minds where they would get better returns is a possibility. Of course the issue of relationship with Britain is something we need to look at. We’ve heard the issue of credit lines and how it can have affected us. Shift can also be an issue. “And of course, most us who are not familiar with the dealers of European Union (EU) four pillars, we should also look at it. Very close to that is the issue of people, service, goods and capital; we should be looking at that particular issue. “We’ve also been told that the numbers of Nigerian professionals that are serving European

Union (EU) are even more that other foreigners put together. So what are the implications of this with the withdrawal of Britain as a pillar of the European Union back to Nigeria and that goes to the issue of remittances. Of course we have seen and heard a syndrome of crisis and we need to also look at it.” He added: “The European Union recession and global recession have been brought to fore. Security is also an issue. What is the North Atlantic Treaty Organisation (NATO) to us in Nigeria; the talk of Boko Haram, the talk of different things. How will Scotland react to NATO.” Speaking on the sideline of the event Chief Consultant, B.Adedipe Associates Limited, Dr. Biodun Adedipe, said the first consideration would be risks.

FCMB Restates Commitment to Customer Satisfaction First City Monument Bank (FCMB) Limited has said that underlining its business philosophy is its drive to attain the highest levels of customer advocacy and customer satisfaction. A statement from the bank quoted the Group Managing Director/Chief Executive Officer of the bank, Mr. Ladi Balogun to have explained that the bank would continue to build on its foundation, saying that he was confident that its strategy was building the necessary resilience. He added: “We will continue to reinforce our position as an inclusive lender by supporting sectors that will drive the prosperity of the markets in which we operate. We will also bring greater accessibility to a broad

range of financial services. By doing so, we will continue to strengthen our resolve to build a very resilient financial services franchise. “We will be the bank that everyone wants to bank with, do business with, and turn opportunities into realities. That is because we stand for professionalism through respecting customers and colleagues and following through on promises. We stand for sustainability through responsible actions and making a positive impact. We are customer-focused by listening, responding and acting on what others want. We set high standards and always aim for continuous improvement in pursuit of excellence.”

According to the statement, the bank’s niche for excellence and a clear understanding of its market and the environment shows that it is well positioned to create more value for its growing customer base and other stakeholders. “Though the journey has witnessed low and high moments, FCMB has risen above challenges over the years to emerge as one of the leading retail and commercial banking-led institutions in corporate Nigeria. This speaks volumes about the resilience, endurance, robustness and viability of the brand to sustainably deliver exceptional banking services to individuals, groups and organisations across segments,” it added.

MARKET INDICATORS MONEY AND CREDIT STATISTICS Broad Money (M2)

20,470,436.00

-- Narrow Money (M1)

9,040,817.68

---- Currency Outside Banks

1,441,365.03

---- Demand Deposits

7,599,452.65

-- Quasi Money

11,429,618.32

Net Foreign Assets (NFA)

5,551,714.27

Net Domestic Assets(NDA)

14,918,721.73

Wema Bank Plc has announced the official launch of its special Unstructured Supplementary Service Data (USSD) banking platform *945#. A statement explained that bank’s former USSD code was upgraded with more features to benefit both existing and potential Wema customers. The USSD is a GSM com-

munication technology that sends text messages between mobile phones and network platforms. The statement quoted the bank’s Head of e-Business, Mr. Dele Adeyinka to have stated that “the Wema Bank family is excited about this new development and stated that the 945 USSD platform will enable customers and non-customers

alike gain easy and simple access to banking solutions from wherever they are. “Everyone can access the simple banking solutions provided by *945#” Adeyinka stated. “*945# provides services like airtime top-up, account opening, money transfer, cash-on-the-go, payment of bills, and balance enquiry”.

22,664,815.74

-- Net Domestic Credit (NDC) ---- Credit to Government (Net)

3,782,578.01

---- Memo: Credit to Govt. (Net) less FMA

4,991,246.39

---- Memo: Fed. and Mirror Accounts (FMA)

-1,208,668.38

---- Credit to Private Sector (CPS)

18,882,237.7

--Other Assets Net

-7,746,094.02

Reserve Money (Base Money)

5,758,634.07

--Currency in Circulation

1,811,090.48

--Banks Reserves

3,383,756.72 • Source - CBN

MANAGED FUNDS Initial Price (N) Stanbic Balanced Fund

Buying Price(N)

Selling Price

1,660.29

1,685.29

Stanbic IBTC NEF

1,000.00

11,002.32

11,326.67.11

Stanbic SIBond

120.47

Stanbic IBTC Ethical

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

Wema Bank Unveils Easy Banking Platform

(MILLION NAIRA)

MARCH 2016

13.1030 (Yield % ) • Monetary Policy Rate - 13%

OPEC DAILY BASKET PRICE AS AT FRIDAY 1, JULY 2016 Vienna, Austria, 4 July 2016--The price of OPEC basket of fourteen crudes stood at $45.42 a barrel on Friday, compared with $46.27 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). SOURCE: OPEC headquarters, Vienna

T H I S D AY •TUESDAY, JULY 5, 2016

MARKET NEWS

GSK Shareholders Approve Sale of Drinks Business, Get 60k Special Dividend Goddy Egene and Eromosele Abiodun Shareholders of GlaxoSmithKline Consumer Nigeria Plc yesterday approved the divestment of the company’s drink business to Suntory Beverage & Food Nigeria Limited. Suntory Beverage bought British drinks brands Lucozade and Ribena from GSK Global in 2013 for $2.1 billion. Since then, the company

has outsourced production and sales of the drinks in Nigeria to GSK Consumers Nigeria Plc. However, in January 2016, Suntory Nigeria made an offer to purchase the drinks business of GSK Nigeria. The directors of GSK brought the offer to shareholders to approve at the extra-ordinary general meeting held in Lagos. Addressing the shareholders of the company on the transaction

at the meeting, the Chairman of GSK Nigeria Plc, Mr. Edmund Onuzo, stated it would enable the company focus on consumer health and ensure it continues to deliver more effective and high quality treatments for healthcare consumers. According to him, in September 2013, GlaxoSmithkline Group globally divested Ribena and Lucozade brands to the Suntory Group. “However, at that time, GSK

Nigeria secured the rights to continue to manufacture and distribute the products in Nigeria under a 10-year arrangement which ends on August 18, 2023.After that date, the rights to manufacture and distribute Lucozade and Ribena in Nigeria will revert to Suntory, and the company will have no further rights to sell these products. ”On January 25, 2016, we announced that we had received a

non-binding offer from Suntory Beverage and Food Nigeria Limited for the acquisition of the company’s drinks business. And following intense negotiations on May 31, 2016,we further disclosed that we had agreed the terms of the proposed sale of the drinks business to Suntory for a headline price of $79.2 million,” he said. The chairman explained that the proceeds of the transaction

would be used in payment of taxes, defray cost of transaction, payment of debts (intercompany/trading arrangements) and investment to grow the retained business. The shareholders approved the transaction but urged the directors to ensure that they work hard to minimise the impact of the divestment on the overall performance of GSK Nigeria going forward.

DAILY STOCK MARKET REPORT T H E

N I G E R I A N

STO C K

E XC H A N G E

TUESDAY JULY 5, 2016 • T H I S D AY

INTERNATIONAL

email:foreigndesk@thisdaylive.com

Suicide Attackers Launch 3 Strikes in Saudi Arabia

Zacheaus Somorin with agency reports

A wave of suicide bombings yesterday hit three Saudi Arabian cities over a 24-hour period. The attacks came on the heels of massive jihadi assaults in the Muslim world last week. The deadliest occurred in Medina, where four people were killed and another person was wounded, according to an official with knowledge of the event. The city is a major spot in Islam because that’s where Prophet Mohammed is buried. The bomber, who died in the explosion, targeted security officers, but it is unknown precisely who was killed, the source said. In Qatif in eastern Saudi Arabia, a suicide bomber attempted to launch an attack at a Shiite mosque

but failed, killing himself in the process, according to an official with knowledge of the event. There were no injuries. Near the U.S. Consulate in Jeddah, a suicide bomber killed only himself after detonating an explosive according to the state-run Saudi Press Agency. Policemen were injured in the attack. There were no initial claims of responsibility. Attackers launched strikes last week in Turkey, Bangladesh,Yemen and Iraq, killing scores of people. They are claimed or thought to be carried out by ISIS. The strikes come as the Muslim holy month of Ramadan ends and Americans celebrate the Fourth of July, their independence day Early Monday, the Saudi police became suspicious of a man who appeared to be roaming around

a parking lot of a major hospital, the news agency reported. When officers approached him, the man detonated what appeared to be an explosive belt. The explosion happened roughly 33 feet (10 meters) from the consulate’s wall. Witnesses told CNN the blast occurred about 3 a.m. local time

and that it appeared that at least two police officers were slightly injured in the attack. The Saudi news agency reported that the policemen were slightly injured and that they were taken to the hospital. The report did not specify how many were hurt. None of the bystanders in the parking

lot were injured in the attack, according to SPA. Police found three devices inside the bomber’s car. A bomb disposal unit used a robot to detonate them, said a journalist who was on the scene. The Saudi Interior Ministry is investigating the case, according to the SPA. A U.S. State

Department official told CNN that all chief of mission personnel were accounted for. The bombing came after a week of attacks in Turkey, Bangladesh and Iraq, which have left many on edge. In 2004, the U.S. consulate in Jeddah was attacked by gunmen linked to al Qaeda, who killed five employees.

Hundreds Protest in Nairobi over Rights Lawyer’s Death About 300 people marched through the Kenyan capital yesterday to protest over what they said was the extrajudicial killing by police of human rights lawyer, Willie Kimani, his client and their driver. Demonstrators carried a mock coffin emblazoned with the words “Stop extrajudicial killings.”Others wore T-shirts with the slogan“Stop police executions.” Some carried placards demanding Interior Minister Joseph Nkaissery resign. Rights groups in Kenya, where members of the public often complain about police corruption,

have accused sections of the police service of involvement in extrajudicial killings, including in the case of Kimani, his client Josephat Mwendwa and taxi driver Joseph Muiruri, whose bodies were found last week. Police officials say they investigate and prosecute any officers suspected of breaking the law. After lodging a complaint alleging he had been shot and injured by police, Mwendwa was charged with a range of offences, including possessing drugs and resisting arrest, activists said.

US Senators Warn against Troop Cuts in Afghanistan The international military mission in Afghanistan will fail if troop levels are reduced further, with potentially dangerous repercussions for the rest of the world, a delegation of U.S. lawmakers warned during a visit to Kabul yesterday. Fifteen years after an Americanled operation toppled the Taliban in response to the September 11, 2001, terrorist attacks,President Barack Obama is considering whether to maintain the current level of 9,800 U.S. troops or reduce it to 5,500 by the end of the year, as current plans call for.

“I cannot guarantee success if we keep 9,800, but I can ensure you failure if we go to 5,500,”Republican Senator Lindsey Graham told reporters in Kabul. “I will have a hard time supporting our continued presence here as it’s not fair to those left behind...They just can’t do the job. If we go to 5,500 this place will fall apart, quickly.”Graham joined U.S. senators John McCain, Benjamin Sasse, and Joe Donnelly in a visit timed so the bipartisan delegation could visit with troops during the Independence Day holiday.

WE LOVE LONDON

Demonstrators take part in a protest aimed at showing London’s solidarity with the European Union following the recent EU referendum, inTrafalgar Square, central London…yesterday

Death Toll in Baghdad’s Suicide Bombing Rises to 150 The death toll from a suicide bombing in a Baghdad shopping district rose above 150 yesterday, fueling calls for security forces to crack down on Islamic State sleeper cells blamed for one of the worst ever single bombings in Iraq. Numbers rose as bodies were recovered from the rubble in the Karrada area of Baghdad, where a refrigerator truck packed with explosives blew up on Saturday night when people were out celebrating the holy month of Ramadan. By yesterday afternoon the toll in Karrada stood at 151 killed and 200 wounded, according to police and medical sources. Rescuers and families were still looking for 35 missing people. Islamic State claimed the bombing, its deadliest in Iraq, saying

it was a suicide attack. Another explosion struck in the same night, when a roadside bomb blew up in popular market of al-Shaab, a Shi’ite district in north Baghdad, killing two people. The attacks showed Islamic State can still strike in the heart of the Iraqi capital despite recent military losses, undermining Prime Minister Haider al-Abadi’s declaration of victory last month when Iraqi forces dislodged the hardline Sunni insurgents from the nearby city of Falluja. Abadi’s Shi’ite-led government ordered the offensive on Falluja in May after a series of deadly bombings in Shi’ite areas of Baghdad that it said originated from the Sunni Muslim city, about 50 km (30 miles) west of the capital. Falluja was the first Iraqi city

captured by Islamic State in 2014, six months before it declared a caliphate over parts of Iraq and Syria. Since last year the insurgents have been losing ground to U.S.backed Iraqi government forces and Iranian-backed Shi’ite militias. “Abadi has to have a meeting with the heads of national security, intelligence, the interior ministry and all sides responsible for security and ask them just one question: How can we infiltrate these groups?”said Abdul Kareem Khalaf, a former police Major General who advises the Netherlands-based European Centre for Counterterrorism and Intelligence Studies think tank. He said Islamic State, or Daesh, “has supporters or members everywhere - in Baghdad, Basra and Kurdistan. All it takes is for one house to have at least one

man and you have a planning base and launch site for attacks of this type.” In a sign of public outrage at the failure of the security services, Abadi was given an angry reception on Sunday when he toured Karrada, the district where he grew up, with residents throwing stones, empty buckets and even slippers at his convoy in gestures of contempt. He ordered new measures to protect Baghdad, starting with the withdrawal of fake bomb detectors that police have continued to use despite a scandal that broke out in 2011 about their sale to Iraq under his predecessor, Nuri alMaliki. The hand-held devices were initially developed to find lost golf balls, and the British businessman who sold them to Iraq for $40 million was jailed in Britain in 2013.

China Criticizes Japan over ‘Dangerous’ Jet Scramble China strongly criticized Japan over a scramble of military aircraft from the two countries on Monday amid a dispute over islands in the East China Sea. Two Japanese fighter jets took “provocative actions”at a high speed near a pair of Chinese fighter jets that were carrying out patrols in the East China Sea on June 17, Chiana’s defense ministry said in a micro blog statement on Monday, without specifying where exactly the incident took place. The Japanese planes used fire-

control radar to“light up”the Chinese aircraft, the statement added. Japan’s senior military officer has acknowledged there was a scramble but has denied that any radar lock by the Chinese jet occurred or that the incident turned dangerous. “The Japanese plane’s provocative actions caused an accident in the air, endangering the safety of personnel on both sides, and destroying the peace and stability in the region,” China’s Defense Ministry said, adding the

Chinese aircraft“responded resolutely”. China called on Japan to cease all provocative action, the statement added. The statement about the incident comes after Japan’s top military commander accused China of escalating military activity in the East China Sea, saying Japanese emergency scrambles to counter Chinese jets almost doubled over the past three months. Japan is embroiled in a dispute with China in the East China Sea

over ownership of a group of islands which lie about 220 km (140 miles) northeast of Taiwan, known as the Senkakus in Tokyo and the Diaoyu islands in Beijing. Japan is worried that China is escalating its activity in the East China Sea in response to Tokyo’s pledge to support countries in Southeast Asia, including the Philippines and Vietnam, that oppose China’s territorial claims in the South China Sea.

TUESDAY JULY 5, 2016 • T H I S D AY

NEWS

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

EFCC Withdraws Charges against Alison-Madueke, Kola Aluko

Court grants Omokore, Fani-Kayode, Nenadi Usman, others bail

Davidson Iriekpen inLagosand Tobi SoniyiinAbuja

Justice Binta Murtala Nyako of a Federal High Court in Abuja yesterday struck out the names of a former Minister of Petroleum Resources, Mrs. Diezani AlisonMadueke, and a businessman, Chief Kolawole Akanni-Aluko, from the criminal charges filed against them. While Alison-Madueke is in the United Kingdom receiving treatment for cancer, Akanni-Aluko was said to be at large. Justice Nyako struck out their names after the prosecution counsel, Mr. Rotimi Jacobs (SAN), representing the Economic and Financial Crimes Commission (EFCC), made an application to that effect. Alison-MaduekeandAkanni-Aluko were initially charged alongside Babajide John Omokore, Atlantic Energy Brass Development Ltd, Atlantic Energy Drilling Concept Ltd, Victor Briggs, Abiye Membere and David Mbanefo for alleged crude oil fraud. However, Omokore and the others werearraigned but they all pleaded not guilty to the charges preferred against them. Interestingly, the prosecutor, Jacobs, did not oppose the applications, but told the judge to give them conditions that would make them appear in court for trial. After the arguments for bail, Justice Nyako granted each of them bail in the sum of N50 million. Omokore and others were arraigned before the court on a nine-count charge slammed against them by the EFCC. In her ruling on the bail application of the defendants, Justice Nyako said each of the defendants must produce a surety, who must either be a senior civil servant or must have a landed property. She said the sureties must depose to an affidavit of means and that the defendants must also deposit their international passport with the court. Count one on the charge sheet signed by the Deputy Director, Legal and Prosecution Department of the EFCC, Aliyu M. Yusuf,

read: “That you, Babajide John Omokore, Atlantic Energy Brass Development Ltd, Atlantic Energy Drilling Concepts Ltd and Kolawole Akanni-Aluko (now at large) between May and October 2013, within the jurisdiction of this honourable court, by false pretence and with intent to defraud, induced the Nigerian Petroleum Development Company, Nigeria National Petroleum Corporation (NNPC) and the Federal Government of Nigeria to deliver to you 5,652,227 barrels of crude oil (Brass blend) valued at the sum of US$616,013,615.27, through the medium of contact (Strategic Alliance Agreement) which delivery was induced by false pretence to wit: the representation that you have technical competence, professional skills and funds (both local and foreign) necessary to support NPDC in petroleum operation for OMLs 60, 62, 62 and 63 and you thereby committed an offence contrary to Section 1(1b) of the Advance Fee Fraud and other fraud related offences Act CAP A6 2010 Laws of the Federal Republic of Nigeria and Punishable under Section 1 (3) of the same Act.” Count three read: “That you, Babajide John Omokore, Atlantic Energy Brass Development Ltd, Atlantic Energy Drilling Concepts Ltd and Kolawole Akanni Aluko (now at large) between May 2013 and March 2014, within the jurisdiction of this honourable court obtained by false pretence and with intent to defraud 7,551,867 barrels of crude oil (Brass blend) valued at the sum of US$823,075,189.95 from Nigerian Petroleum Development Company, Nigeria National Petroleum Corporation (NNPC) and the Federal Government of Nigeria on the false pretence that you had funds (both local and foreign) necessary to support the Nigerian Petroleum Company Ltd in petroleum operation for OMLs 60, 61, 62 and 63 and you thereby committed an offence, contrary to Section 1(a) of the Advance Fee Fraud and Other Fraud Related Offences Act CAP A6 2010 Laws of the Federal Republic of Nigeria and punishable under Section 1

(3) of the same Act.” Count five read: “That you, Babajide John Omokore, Atlantic Energy Brass Development Ltd, Atlantic Energy Drilling Concepts Ltd and Kolawole Akanni-Aluko (now at large) sometime in 2013 within the jurisdiction of this honourable court, did conspire amongst yourselves to commit an offence to wit: laundering of proceeds of an unlawful act and you thereby committed an offence contrary to Section 18 (a) of the Money Laundering (Prohibition) Act, 2011, as amended in 2012, and punishable under Section 15 (3) of the same Act.” Count nine read: “That you Victor Biggs (while being the Managing Director of the Nigerian Petroleum Development Company (NPDC), Abiye Membere (while being the Group Executive Director, Exploration and Production of NNPC, David Mbanefo, while being Manager, Planning and Commercial of the NNPC between 2013 and 2014 within the jurisdiction of this honourable court did conduct procurement fraud by means of corruption when you

collected car gifts from Babajide John Omokore, Atlantic Energy Brass Development Ltd, Atlantic Energy Drilling Concepts Ltd and Kolawole Akanni-Aluko on account of Strategic Alliance Agreement they had with NPDC and you thereby committed an offence contrary to Section 58(4b) of the Public Procurement Act CAP P44, Laws of the Federation of Nigeria 2010 and punishable under Section 54(5) of the same Act.” In another criminal suit filed by the EFCC, the Federal High Court in Lagos also granted a formerAviation Minister Femi Fani-Kayode, former Minister of Finance Nenandi Usman and one Danjuma Yusuf bail in the sum of N250 million each. Fani-Kayode, who was also the Director of Media and Publicity of the Peoples Democratic Party (PDP) Presidential Campaign Committee of former President Goodluck Jonathan, was arraigned alongside Usman, Yusuf and a company, Joint Trust Dimension Nig. Limited, for money laundering by the commission. They were arraigned on a 17-count charge bordering on unlawful retention, unlawful use

and unlawful payment of money to the tune of about N4.9 billion. They all pleaded not guilty to the charges. Delivering his ruling on their bail applications yesterday, the trial judge, Justice Sule Hassan, held that there was no evidence that the accused would interfere with the trial if granted bail. The judge noted that denying the accused bail, especially when the court was preparing to go on an eight-week vacation, would not serve the interest of justice. He accordingly granted the first, second, and third accused bail in the sum of N250 million each, with two sureties each in like sum. The judge added that each of the sureties must exhibit evidence of landed properties in Lagos, and must submit their international passports to the court’s registry. The judge further ordered that all documents must be verified by the EFCC within seven days. He fixed October 19, 20, and 21 for trial. In the charge, the accused were alleged to have committed the offences between January and March 2015.

In counts one to seven, they were alleged to have unlawfully retained over N3.8 billion which they reasonably ought to have known formed part of the proceeds of an unlawful act of stealing and corruption. In counts eight to 14, the accused were alleged to have unlawfully used over N970 million which they reasonably ought to have known formed part of an unlawful act of corruption. Meanwhile, in counts 15 to17, Fani-Kayode, together with one Olubode Oke, who is said to now be at large, were alleged to have made cash payments of about N30 million cash, in excess of the amount allowed by law, without going through a financial institution. Besides, Fani-Kayode was alleged to have made payments to one Paste Poster Co (PPC) of No 125 Lewis St., Lagos, in excess of the amounts allowed by law. All the offences were said to have contravened Sections 15(3) (4), 16(2)(b), and 16(5) of the Money Laundering (Prohibition) (Amendment) Act, 2012.

OUR BOSS IS 55

L-R: Secretary to the Lagos State Government (SSG), Mr. Tunji Bello (third right), in a group photograph with his personal aides, during his 55th birthday celebration, at his residence, in Lagos....recently

Court to Hear Application to Stop Enforcement of Judgment Removing Ikpeazu July 7 Kinsmen warn of dire consequences if gov loses mandate through illegality Tobi SoniyiinAbujaandEmmanuel UgwuinUmuahia

Justice Okon Abang of the Federal High Court Abuja has fixed July 7, 2016 to hear the motion for stay of execution of his judgment that removed Abia State Governor, Okezie Ikpeazu from office. The motion praying the court to stay the judgment was filed by Ikpeazu through his counsel led by Wole Olanipekun (SAN) who led other senior advocates. At the sitting of the court, yesterday, Justice Abang who was scheduled to hear the motion in court fixed hearing for July 7.

The judge said he would also determine whether issues relating to the grant of stay in the case of election petition apply to the instant case which is a pre election matter. He urged parties in the matter to file an exchange necessary processes before the adjourned date so as to facilitate early hearing of the motion. Ikpeazu had in the motion asked Justice Abang to put the judgment which removed him from office on hold pending the determination of his appeal filed against the judgment of the court at the Court of Appeal. He told the court that the appeal had been entered at the appellate court and that necessary steps

would be taken to facilitate quick determination of the appeal. The judge had on June 27 ordered Ikpeazu to vacate office with immediate effect. Justice Abang, in his ruling, also ordered the governor to hand over to Mr. Samson Ogah, owner of Masters Energy, who came second in the Peoples Democratic Party (PDP) governorship primaries in the state. The judge further ordered the Independent National Electoral Commission (INEC) to issue a Certificate of Return to Ogah who contested the governorship ticket with Ikpeazu. Two members of the PDP had accused Ikpeazu of failing to pay

Personal Income Tax as and when due for 2010 and 2011 in line with Section 24(f) of the 1999 Constitution, which states that “It shall be the duty of every citizen to declare his income honestly to appropriate and lawful agencies and pay his tax promptly.” In the suit dated December 22, 2014 and instituted at the Federal High Court, Abuja, Obasi Eke and Chukwuemeka Mba, had asked the PDPand INEC to disqualify Ikpeazu from contesting the governorship election. Meanwhile, as the prospect of losing power to Abia North senatorial district looms if Uche Ogah eventually unseats Governor Ikpeazu, youths from Abia South

senatorial district yesterday warned of dire consequences if their kinsman was removed from office unconstitutionally, vowing to make the state ungovernable. Until Ikpeazu came to office in May 2015 no Ukwa/Ngwa person had occupied government house Umuahia hence the seething anger among his kinsmen over the threat to his mandate. The youths under the aegis of Supreme Council of Ukwa Ngwa Youths issued the threat at a press conference in Umuahia, arguing that Abia Charter of Equity under which power moved to Abia South after the north and central had taken their turns was being

violated following the attempt to unseat Ikpeazu. The angry youths from the nine local governments that make up Ukwa/Ngwa insisted in a press statement read by the National President of the Supreme Council of Ukwa Ngwa Youths, Kngsley Nna Okadigbo, that any attempt to remove Ikpeazu illegally in disregard of the Charter of Equity “must be vigorously resisted. Also, a Coalition of Civil Society Groups in Abia (CCSGA) has issued a 24 - hour ultimatum to the Independent National Electoral Commission (INEC), to withdraw the Certificate of Return it issued to Dr. Uche Ogah.

TUESDAY JULY 5, 2016 T H I S D AY

T H I S D AY TUESDAY JULY 5, 2016

TUESDAY JULY 5, 2016 • T H I S D AY

NEWSXTRA

Court Declares PDP Convention Valid, Confirms Sheriff’s Ouster

Ernest ChinwoinPortHarcourt

The Federal High Court sitting in Port Harcourt yesterday declared the May 21 national convention of the Peoples Democratic Party (PDP) valid, stating that its decisions did not violate any known law or the constitution of the party. Delivering judgment on a suit brought before the court by the National Caretaker Committee (NCC) of the PDP, the presiding judge, Justice Abdullahi Liman, declared that the Port Harcourt national convention of the party was legally constituted and its decisions constitutional. The court affirmed that the appointment of a national caretaker committee by the national convention of the PDP to oversee its affairs was legal and in line with the provisions of the PDP constitution. He dismissed all grounds of defence put up by former National Chairman of the party, Senator Ali Modu Sheriff. Liman said Article 31 (1) of the PDP constitution vested the powers to convene a national convention on the national executive committee of the party. The court held that pursuant to the constitution of the party, Sheriff had no powers to unilaterally postpone the properly constituted national convention on a day all delegates had converged on Port Harcourt, the host city. He described the action of Sheriff as “most unconscionable,” pointing out that the former acting national chairman participated in all the processes leading to the national convention, only to make a u-turn at the final minute after he was screened and disqualified. The court ruled that after Sheriff was disqualified following his screening, the only option that was left to him was to have gone to the venue of the national convention to seek the opinion of delegates whether they were prepared to go on with the convention or not. According to Liman, the absence

of Sheriff at the convention did not visibly affect the process as his powers were not usurped. The court declared that under Article 35 (b) of the PDP constitution, in the absence of the Chairman, the Deputy Chairman was empowered to preside over the national convention. It therefore ruled that the May 21, 2016, PDP national convention was properly constituted and the decisions taken at the convention valid. The Federal High Court further ruled that in line with Article 33 (2), of the PDP constitution, the National convention of the party is supreme and can exercise the powers to dissolve the National Working Committee and the national executive committee of the party. On the issue of the abuse of court process claimed by the former national acting chairman, the court held that the plaintiff in the case in question was not the same in the cases mentioned by the defendants, noting that the plaintiff’s suit only centred on the national convention. The court noted that five days to the national convention, Sheriff had, through his counsel, Ahmed Raji (SAN), dissociated himself from one of the suits they filed via proxies. Liman emphasised that there was no suit challenging the conduct of the national convention in Port Harcourt and that no injunction sought to stop the convention. Addressing journalists after the judgment, counsel to the PDP, Dejo Lamikanra (SAN), said the judgment settles all the contending issues concerning the PDP. He said with the judgment, the decision of the national convention to appoint a caretaker committee stands and that Sheriff was duly sacked. In his remarks, Secretary of the NCC of the PDP, Senator Ben Obi, declared that the caretaker committee would

Envoy Explains Why US Stopped Nigerian Oil Imports The United States Ambassador to Nigeria, Mr. James Entwistle, has said there is no hidden agenda behind his country’s decision to stop crude oil purchase from Nigeria. Entwistle, said this while fielding questions from journalists at the 240th anniversary of the US Independence in Abuja at the weekend. The envoy said the price of oil was determined by the international market and that the desire of every business person was to get the best product at the best price. “There is no conspiracy for the US not to buy oil from Nigeria. “Price of oil is determined by international market and business people go to get the best product for the best price. That something happened to us with oil. “But I wish you listened to my last statement where I talked about the importance of the private sector, the commitment of the US companies to help build this country (Nigeria),” he said. The US had in 2014 stopped the importation of crude oil from Nigeria, a development that was tied to the

discovery of shale oil and gas in commercial quantity in the country. The Minister of State for Petroleum, Dr. Ibe Kachikwu, recently said the US would soon resume the importation of crude oil from Nigeria. He stated that the rekindled relationship was a direct fallout of President Muhammadu Buhari’s visit to the US in July this year. The minister, however, did not reveal the details of the development but said the US had indicated its interest in buying “very limited” quantities of Nigeria’s crude. The News Agency of Nigeria (NAN) reported that Entwistle urged the Buhari-led government to create an environment that would attract more foreign investment into the country as a way to revamp the nation’s economy. “I am not much of an economist but I think the government is starting in the right direction. “Things like fuel subsidy, exchange rate will continue to create an environment that is welcoming to foreign investment.

now settle down to carry out the responsibility bestowed on it by the national convention. Counsel to Sheriff, Mr. John Martins Abu, commended the court for the speedy conclusion of the matter. Meanwhile, mixed reactions have trailed the court’s judgment. Expectedly, while Makarfi-led NCC has expressed happiness at the Port Harcourt judgment, the former national chairman, Sheriff, and his group said they totally disagreed with it, adding that they have appealed against it. In a statement issued yesterday, shortly after the delivery of the judgment, Makarfi asked the aggrieved group to join him in the effort to move the party forward.

Expressing mixed feelings, Makarfi said though the court judgment was good, he felt sad that the crisis in the party had to be taken this far. He further said as far as he was concerned, there should be no winner or loser on the matter. “I am indeed happy with the judgment on one hand but also sad that it had to come to this. For me, there should be no winner or loser on this matter. I am still calling on Sheriff and his followers to join us so that we accommodate one another and indeed all other groups in a just, fair and equitable matter with a view to moving the party forward, “ he said. However, Sheriff’s reaction was a far departure from Makarfi’s reconciliatory tone. Addressing a press conference

yesterday in Abuja, Sheriff said he disagreed with the court judgment in Port Harcourt and that his claim to the chairmanship seat remained intact. He said since the Federal High Court in Port Harcourt is of coordinate jurisdiction, he is under no obligation whatsoever to abide by its ruling. The former national chairman said he has instructed his lawyers to immediately file an appeal and to also apply for stay of execution of the judgment. “We receive the news of the court judgment in Port Harcourt this morning, saying the caretaker committee has right to go to court and sue on behalf of PDP. The convention took place in Port Harcourt. We only want you to recast your mind to what we are talking about.

“I also want you to know that the court that gave judgment in Abuja high court last week and federal high court in Lagos, and today’s judgment are all court of same coordinate jurisdiction. “Therefore the order we have in Abuja is still subsisting. What it means is that unless the court of appeal decides otherwise I still remain national chairman, of PDP. “Any court that is of the same jurisdiction cannot overrule another court except the court of appeal. I got my judgment, we disagree completely with today’s judgment. We ask our lawyers to immediately file an appeal. And also ask the same court to stay execution on the judgment. “There are three other judgments before his own, orders from federal high court of coordinate jurisdiction,” he said.

WELCOME BACK YOUR EXCELLENCY

Rivers State Governor, Nyesom Wike (left), and other well wishers receiving former President Goodluck Jonathan back in Nigeria after a successful international speaking tour overseas at the Port Harcourt Airport....yesterday

Oando Concludes Sale of Downstream Stake to Vitol, Helios Ejiofor Alike Oando Plc has announced a $210 million recapitalisation of its downstream operations by HV Investments II B.V., (HVI), a joint venture owned by Helios Investment Partners, a premier Africa-focused private investment firm and the Vitol Group, the world’s largest independent trader of energy commodities. As a result of this and further to the announcement on June 30, 2015, a new company will be formed to hold interests in Oando Marketing Limited; Oando Supply & Trading Limited; Apapa SPM Limited, and Oando Trippmart Limited. According to a statement issued yesterday by Oando’s Head of Corporate Communications, Ainojie Alex Irune, Oando Plc will retain 49 per cent shareholding in the newly formed corporate vehicle, with the Consortium

owning 49 per cent, and the residual two per cent owned by a local entity. The statement quoted Oando Group’s Chief Executive, Wale Tinubu, as saying that despite global economic headwinds, the company had taken the proactive approach to establish a strategic partnership “which will leverage Oando’s sector dominance, considerable local knowledge and expertise; together with HVI’s international, and technical capabilities.” “This partnership will reinvigorate Nigeria’s downstream sector and create one of Africa’s largest downstream operations. We are extremely confident in the success and potential returns this alliance will deliver,” Tinubu added The statement added that the new company will be renamed OVH Energy (OVH) to reflect its ownership structure and the commitment of its new

shareholders. “OVH will be led by a local management team, tasked with building the business, safely and efficiently. Under the new business structure, the initial Board will consist of Mr. Wale Tinubu, Group Chief Executive of Oando Plc., as the Chairman, Mr. Christian Chammas, CEO of Vivo Energy, operating 1600 service stations across 16 African countries and other Vitol and Helios representatives. The current CEO, Mr. Yomi Awobokun, will continue in his role. The service stations will retain the Oando brand,” the statement explained. OVH’s assets will comprise over 350 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly LPG filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

The new business will be the second largest downstream fuels company in Nigeria, with a market share of 12 per cent. Co-founder and managing partner of Helios Investment Partners, Tope Lawani noted his firm’s track record of creating successful businesses. “We look forward to leveraging Helios’ expertise in support of OVH’s management team, and to building another partnership with Vitol, with whom we created Vivo Energy, a leading pan-African downstream business,” Lawani said. On his part, President and CEO of Vitol, Ian Taylor said the investment underlines his company’s commitment to Nigeria. “We are proud to have served our Nigerian customers for many years and we look forward to being actively involved in building this new company, alongside our existing ventures,” Taylor added.

TUESDAY, JUly 5, 2016 • T H I S D AY

EID-EL-FITR FELICITATIONS…

Atiku, Saraki, Dogara, Others Lament Insecurity, Urge Nigerians to Sustain Ramadan Values Our Correspondents As Nigerians join the rest of the world to celebrate Eid-el-Fitri, former Vice President, Alhaji Atiku Abubakar, Senate President, Dr. Bukola Saraki, his deputy, Dr. Ike Ekweremadu, and his predecessor, Senator David Mark, yesterday urged Muslim faithful in the country to sustain the values and virtues of this Ramadan season and simultaneously seek God's intervention in the myriad of challenges confronting Nigeria. In separate statements yesterday, they lamented the growing spate of insecurity in Nigeria and urged all Nigerians to be steadfast and prayerful in the face of daunting socio-economic challenges. Atiku in his goodwill Sallah message to Nigerian Muslims celebrating the end of the Ramadan fasting period, urged Muslims in Nigeria to portray Islam positively through the spirit of tolerance and commitment to peaceful coexistence in their daily conducts. He noted that the lessons of the Holy month should be taken beyond the celebration. Saraki in a statement by his Special Adviser, Media and Publicity, Mr. Yusuph Olaniyonu, said the current challenges were surmountable "if we all realign our character and deeds in tune with the wishes of Allah." He said the country could only regain its lost glory if the citizenry upheld the virtues of good neighbourliness and also eschew intolerance of other people's opinion, corruption, abuse of power, disregard for due process and disobedience to the laws of the land. In his own message signed by his Special Adviser, Media, Mr. Uche Anichukwu, Ekweremadu called on Nigerian Muslims to maximise this occasion of this year’s Eid-el-Fitri to pray for divine intervention in the face of various forms of difficulties confronting the nation. He congratulated the Muslims for the successful completion of the Ramadan fast, and called for unity and concerted efforts among Nigerians, irrespective of their various religious, tribal, and political inclinations. In the same vein, Mark felicitated with Muslims on the occasion of Sallah celebration as he lamented the spate of crimes in Nigeria which he listed to include terrorism, kidnapping, armed robbery, vandalism and religious extremism that are destroying the fabrics of the society. Mark also urged governments at all levels to promote and uphold the sanctity of equity, fairness and justice to all Nigerians which he described as peace and unity building process among Nigerians. Also, the Speaker of the House of Representatives, Hon. Yakubu Dogara, and Deputy Speaker Yussuff Sulaimon Lasun have urged Muslims to pray for Nigeria to overcome its present challenges. In separate messages, Dogara and Lasun felicitated with Muslims on the completion of the month long Ramadan fast. Dogara, according to a statement issued by his spokesman, Mr. Turaki Hassan, advised Muslims to deploy the humility, love, sacrifice and selfless service required during the fasting, to their day to day activities. Similarly, Lasun, in a statement by his spokesman, Mr. Wole Oladimeji called on Nigerians to love one another irrespective of religious or ethnic inclinations and eschew violence.

Wike Felicitates with Muslims

Rivers State Governor, Nyesom Ezenwo Wike, has felicitated with Muslims on the successful completion of the Ramadan fast and the celebration of Eid-el-Fitri. In a Sallah goodwill message, Wike congratulated the Muslim faithful for the successful fasting period andn its attendant benefits of purification. He called on all Nigerians to draw the lessons of piety, love, justice, fairness, equity, peaceful co-existence with others, tolerance, honesty and dedication derived from the teachings of the Holy Prophet all through the Ramadan period.

Fayemi Congratulates Islamic Faithful

The Minister of Solid Minerals Development, Dr. Kayode Fayemi, has felicitated with Muslim faithful in Ekiti State and all over the country on the completion of the Ramadan fast culminating in the Eid-el-Fitri celebration.

Muhammad as stipulated in the Sharia laws which are part and parcel of the life of a believer. The governor in a goodwill message to the people of the state yesterday to mark the celebration of the Eid-el-Fitr, said: "The Ramadan fasting which we observed over the last one month has no doubt taught us a lot of lessons. It has equally instilled in us self-restraint, truthfulness, patience, humility, devotion and obedience to the Almighty Allah as well as inculcated in us feeling of mercy and good character." He said the Ramadan fasting in addition to protecting the society from evils, strengthens in the Muslim community the values of love of justice, equity and unity among other virtues.

Ahmed, Emir of Ilorin Sue for Peace

L-R: Representative of the women forum of Ansarudeen Society of Nigeria, Alhaja Sidikat Atinuke Daodu; representative of Islamic Progressive Association of Nigeria, Mrs Agboola Idayat Omolara; representative of Islamic Progressive Association of Nigeria; Wife of Governor of the State of Osun, Alhaja Sherifat Aregbesola and representative of wife of the President, Mrs. Aisha Buhari, during the distribution of Ramadan gifts at the Government House, Osogbo....yesterday Fayemi in a statement by his Special Assistant on Media, Mr. Olayinka Oyebode, said witnessing another Eid-el-Fitri is a special privilege from the Almighty Allah who has control over the destiny of man. The minister said the 30-day Ramadan fast has drawn the faithful closer to Allah. He therefore urged them to keep on practicising the lessons learnt from the holy month in their relationship with their maker and fellow human beings.

Mimiko Calls for Courage to Solve Nation's Problems

Ondo State Governor, Dr. Olusegun Mimiko, has appealed to Muslims in the country to maintain the tempo of their supplications to God during the Ramadan period, stressing that the country still remains in dire need of prayers more than ever before to surmount her numerous challenges. He said the solutions to the challenges confronting the nation are readily available "and are there for us to apply only if we can take up the courage to do the needful " In his Eid-el-Fitr message issued by the state's Commissioner for Information, Mr. Kayode Akinmade, in Akure yesterday, Mimiko called on Muslims in Nigeria to also sustain the lessons of Ramadan by allowing the God-like characters they lived all through the period to become a way of life for them.

Tinubu Congratulates Nigerian Muslims

The national leader of the All Progressives Congress (APC), Senator Bola Tinubu, has congratulated Nigerian Muslims on the successful completion of this year's holy Ramadan month. According to him, the Ramadan period, apart from providing a time of self-examination and deep reflection, has become a necessary tonic for both religious commitment and nationalistic revitalisation. In his Eid El-Fitr message to Nigerian Muslims yesterday, Tinubu told Nigerians that after the Ramadan comes the big task of working for the betterment of neighbours and Nigeria at large.

Ambode: Embrace Peaceful Co-existence, Tolerance Lagos State Governor, Mr. Akinwunmi Ambode, yesterday called on Nigerians to rededicate themselves to the cause of a peaceful and prosperous Nigeria where citizens, regardless of ethnic, religious, political or social status, can flourish. The governor in his Eid-el-Fitri message said it was only by embracing peace, unity and fairness that Nigerians can put the country back on the path of growth and development. In a statement by his Chief Press Secretary, Mr. Habib Aruna, Ambode said the nation needs brotherly love and harmonious co-existence among

the citizens as a means to overcome its numerous challenges.

Sustain the Virtues of Ramadan, Kalu Tells Nigerians

Former Governor of Abia State, Dr. Orji Kalu, has charged Nigerians to live in peace and harmony, adding that the future of the country is bright under the leadership of President Muhammadu Buhari. Kalu pointed out that the heterogeneous nature of Nigeria should be seen as an advantage, noting that peaceful co-existence among Nigerians regardless of religion, tribe, economic and social status is a panacea for sustainable development In a statement signed by his Special Adviser, Alhaji Kunle Oyewumi, Kalu, while wishing the Muslim community a hitch-free festivity, reminded them to celebrate with people of other religious faiths.

As Muslims celebrate Eid-el-Fitr, Kwara State Governor, Alhaji Abdulfatah Ahmed, has advocated for tolerance, perseverance and love for one another as basis for a peaceful and prosperous society. Ahmed, in a statement issued by his Chief Press Secretary, Abdulwahab Oba, yesterday noted that honesty, resilience and piety are critical lessons of Ramadan which are also crucial for societal growth. Ahmed encouraged religious leaders to continue to preach the message of peace and religious tolerance among the citizenry “so we can harmoniously build a great nation.” Also, the Emir of Ilorin, Alhaji Ibrahim Sulu Gambari, has urged Nigerians to utilise the period of the completion of this year’s Ramadan fasting to move closer to God and pray for the great potentials of the nation by fostering peace, security and stability among the entire citizenry.

Ugwuanyi Felicitates with Muslims

Governor Ifeanyi Ugwuanyi of Enugu State has called on Muslim faithful and Nigerians in general to take advantage of the spiritual rebirth that Ramadan represents to promote love, peace and justice as well as reflect on the importance of unity in the country. While felicitating with President Muhammadu Buhari and other Muslims on this year’s Eid-el Fitri celebrations, Ugwuanyi in a statement signed by his Senior Special Assistant on Media, Mr. Louis Amoke, Bello Seeks Enthronement of noted that the significance of the Muslim festival Peace was enormous and compelling for all Nigerians In commemoration of the Eid-Fitri, Kogi State to embrace one another and affirm the trust of Governor, Alhaji Yahaya Bello, has charged Muslims the founding fathers towards a peaceful, united around the world to restore peace which has been and prosperous nation. challenged by wars and economic instability. In a message issued by his Chief Press Secretary, Conoil Calls for National Rebirth Kingsley Fanwo, the governor said Ramadan at Ramadan represents the sacrifice of Muslim faithful to submit to Allah’s will, and pray for peace around The management of Conoil Plc has enjoined the world. Muslims in Nigeria and all over the world to He said the economic turmoil and wars ravaging put into practice the lessons learnt during the some parts of the world are challenges on the holy month by promoting a culture of religious global Muslim community to prove to the world tolerance and peaceful co-existence. In its that Islam is a religion of peace by leading global goodwill message on the occasion of this year's efforts at enshrining peace and stability. Eid-el-Fitri celebrations, Conoil implored Muslims and Nigerians in general to use the exceptional period of self-denial, forgiveness of sins and mercy, Okowa Congratulates Muslims to reflect on their spiritual lives as individuals as Delta State Governor, Senator Ifeanyi Okowa, well as contribute more meaningfully towards has felicitated with Muslims in the state, the unity, stability and progress of the country. Nigeria and all over the world on the occasion The company noted that the period has again of this year’s Eid-el-Fitr celebrations. Okowa, in a statement by his Chief Press provided another opportunity for Muslims and Secretary, Charles Ehiedu Aniagwu, enjoined all all Nigerians to reorder their value system, enact Muslim faithful in state and Nigerians to extend a positive change in their lives and work towards the spiritual benefits of Ramadan, which are love, making Nigeria great. peace and justice, to their daily living, and through this, contribute to the development of the nation. Glo Jubilates with Nigerians "I felicitate with all Nigerians, especially our Muslim brothers and sisters, on the auspicious Globacom yesterday sent a message of felicitation occasion of this year’s Eid-el-Fitri celebrations. I to all Muslims across the country for the successful congratulate all of our countrymen and women completion of the Ramadan fast. In a statement who have successfully undertaken the purifying issued in Lagos, the telecoms company felicitated Ramadan fast. with the Muslims, expressing confidence that the prayers they offered for the peace and unity of the country had gone a long way in helping the Gaidam Urges Muslims to country to survive the hard times being experienced Embrace Message of Ramadan worldwide. It enjoined all Muslims to take advantage Yobe State Governor, Alhaji Ibrahim Gaidam, of the celebration of the Eid-el-Fitri to promote the has called on Muslims to continue to embrace fear of God and piety, and called on all Nigerians the teaching of Ramadan and ensure that their to embrace peace and live in harmony with fellow behaviours always conform to the teachings of Nigerians irrespective of tribe, political persuasion the Qur’an and Sunnah of the Holy Prophet or religion.

TUESDAY JULY 5, 2016 • T H I S D AY

NEWSEXTRA

FG Not Serious About Niger Delta, Says New Militant Group

Twitter suspends Avengers’ account Despite govt’s appeal, angry ex-militants protest unpaid stipends, ground traffic

Emmanuel Addeh in Yenagoa The Ultimate Warriors, a new militant group in the Niger Delta which emerged two weeks ago, yesterday took a swipe at President Muhammadu Buhari, describing the government’s recent policies concerning the region as ‘contradictory and unserious’. The group argued that instead of rebuilding the oil-rich region, the government had been busy militarising the Niger Delta like a conquered people. In a statement signed by its spokesman, ‘Gen’ Sibiri Taiowoh, the group which

had threatened to continue attacks on oil facilities until the $16billion Export Processing Zone (EPZ) project and the Federal Maritime University were completed, noted that the government was bent on annihilating the people of the region. “You (President) said you needed time and you declared a ceasefire to come out with something. We gave you time but what you did after your medical trip was to make your first comment on bombing of installations after weeks, in an APC Ramadan fast breaking meeting.

Law School DG, 21 Others Make New SAN List

Tobi Soniyi in Abuja

The Director General of the Nigerian Law School, Olanrewaju Adesola Onadeko, and 21 other lawyers were yesterday elevated to the rank of Senior Advocates of Nigeria (SANs). The Chief Registrar of the Supreme Court, Ahmed Gambo Saleh, who also doubles as the Secretary of the Legal Practitioners Privileges Committee, said the new senior advocates would be inaugurated on September 19, 2016. Other successful candidates are: Nnamonso Udo Ekanem, Prof. Mohammed Tabiu, Mrs.

Valerie Azinge, Olufunke Abimbola Agbor, Olusola Oladimeji Ojutalayo, Richard Ayodele Akintunde, Oyesoji Gboolahan Oyeleke, James Njeze Ikeyi, Elisha Yakubu Kura, Adewunmi Ogunsanya, Olatubosun Olanipekun, Kalu Ikwuonwu Umeh, Adewale Sunday Adesokan, Andrew Igboekwe, Fredson, Alexander Okoli, Olaseni Adio, Olasheni Ibiwoye, Abdulakeem Mustapha, Uba Ekpezu Ukweni, Edward Pwajok and Chukwu Omaka Gambo said 131 lawyers applied for the rank while 55 were shortlisted. For interview 22 got the approval of the committee to move to the Inner Bar.

“Then you started deploying and redeploying soldiers to war in the Niger Delta communities. You set up a dialogue and contact committee; and same time started deploying security agents to the Niger delta to do what?,” the group queried. The group alleged that the federal government’s actions have been tailored to favour political associates and family members to the detriment of the entire country, “particularly the Niger Delta region.” The militant group also accused the federal government of spending the money meant to fast-track already started projects in the region, to empower committees and political jobbers. “That is a miscalculation,” it said. Accordingly, the Ultimate Warriors rejected the committee

recently set up by the federal government to oversee the return of peace in the region, describing the government’s move as ‘diversionary.’ Meanwhile, Twitter has suspended the account of the deadly militant group, Niger Delta Avengers. The group had recently deployed the platform to announce its activities, especially the bombing of oil and gas platforms in the region. But it appeared that the social media platform might have heeded the complaints of some users in Nigeria who have recently reported the handle, @ NDavengers, as belonging to a terrorist group. A check yesterday morning revealed that the account of the group which last announced its attacks on oil facilities operated

by Nigerian National Petroleum Corporation (NNPC), Chevron Nigeria Limited and Nigerian Petroleum Development Company on Sunday, had been deleted. It was observed that the message on the social media platform now read, “Account suspended! This account has been suspended. Learn more about why Twitter suspends accounts, or return to your timeline.” The spokesman of the Avengers, Mudoch Agbinibo, confirmed the suspension in a statement posted on Facebook. Meanwhile, in spite of the appeal made to ex-Niger Delta agitators by the Bayelsa State government to suspend their proposed protest, hundreds of angry former militants from Bayelsa and Delta States

yesterday disrupted traffic for hours along the MbiamaYenagoa section of the popular East-West Road. The youths said they were demonstrating against the delayed payment of their fivemonth stipends by the federal government despite assurances from the Presidential Amnesty Office. The protest which caused a disruption of traffic along the busy road left travellers stranded for some hours while many vehicle owners, commercial drivers and commuters were stuck in the gridlock for several hours. Governor Seriake Dickson of Bayelsa State had appealed to the ex-militants to be calm and exercise patience with the federal government over the delay in the payment.

Witness Says Only Dasuki Can Explain $40m Pipeline Contract Awarded to Jonathan’s Cousin HAPPY ANNIVERSARY US Ambassador to Nigeria, Mr. James Entwistle (left), greeting the publisher of The Abuja Inquirer, Dan Akpovwa (right), during the

Tobi Soniyi in Abuja

Alhaji Ibrahim Mahe, a witness in the ongoing trial of Azibaola Robert, cousin to former President Goodluck Jonathan, yesterday told a Federal High Court in Abuja that only detained former National Security Adviser (NSA), Col. Sambo Dasuki (rtd), could explain why OnePlus Holdings Limited got a $40 million pipeline security contract. Mahe, who recently retired as Permanent Secretary, Special Services Operations (SSO) in the NSA’s office told the court that he paid One Plus $40 million out of the $600 million special security fund sourced from the Nigerian National Petroluem Corporation (NNPC). Under cross-examination by counsel to Roberts, Chief Chris Uche (SAN), Mahe, who admitted serving only eleven months in the ONSA, also admitted that some other firms got security contracts in excess of $40 million approved for OnePlus.

The retired permanent American 240th Independence anniversary celebration in Abuja....weekend. With them is the former Kano State Hovernor, Senator Rabiu secretary, however, failed to tell Musa Kwakwanso the court presided by Justice Nnamdi Dimgba the names of the companies that benefited from the remaining $560 million of the special security fund. He admitted that the ONSA Dan’Azumi J. Doma, in their repeatedly that the government We will be watching them to maintained naira, dollar and Omololu Ogunmade in Abuja desperate drive to justify and and specifically, the Attorney see how they will smuggle euro security accounts. Also, under cross- The Chairman, Senate Committee establish a case of forgery against General of the Federation (AGF), Saraki and Ekweremadu’s examination, Mahe admitted on Federal Capital Territory Saraki and Ekweremadu. Mr. Abubakar Malami, has no names into it. This is the “We have our own sources case against our presiding officers. height of desperation and that prior to crediting the (FCT), Senator Dino Melaye, account of OnePlus with yesterday alleged plans by and we have been reliably They filed the case to distract we will continue to monitor the $40 million, at least certain individuals to “doctor” informed that the prosecution the two men, embarrass them, developments on it. It is clear nine officials in the office the findings of police on the having realised that there is a force a change of leadership and those who initiated this forgery of the NSA minuted on the allegation of forgery of Senate big hole in their case against eventually cow the Senate, in suit against the leadership of Standing Orders against Senate Saraki and Ekweremadu who particular, and the National the Senate know that they have payment warrant. The retired permanent President, Bukola Saraki, and his were not mentioned in the police Assembly, in general. made a mistake. They should report, are now trying to doctor secretary said he paid deputy, Ike Ekweremadu. “The forgery case is the height cut their losses and discontinue Melaye said such individuals the report and include the names of desperation by some elements the error. OnePlus based on the conviction that the firm’s want to doctor the report with a of both presiding officers of the to bring down the legislature. “To think that they will now security contract met due view to making it indict Saraki Senate. Malami has a personal agenda use forgery to justify a false case “We are aware of that to achieve an objective for which of forgery, further their abuse process requirements, having and Ekweremadu who have been been endorsed by nine top charged with alleged forgery of development and we want he has been hired as a counsel of the court process as well as Senate Standing Orders 2011 members of the public to know by a few aggrieved Senators. abuse of office and think we officials of the ONSA. the level of desperation that these Now, a court has affirmed will be looking at them will not Mahe told the court that before an Abuja High Court. In a statement in Abuja people are ready to go to nail the our claim that he is abusing be possible. We will call on the the ONSA was not in the habit of advertising security yesterday, Melaye said those Senate President and his deputy. his office and that there is a courts to continue to play their “It is because of this plan conflict of interest involving him. role as the last resort for every contracts, also admitting that behind the move want to create for security purposes, certain a police report that is different that they refused to include the “The said police report is man who wants justice at all security contracts could be from the one signed by Deputy police report in the process they already in the public space. The times and in all circumstances,” Inspector General of Police, filed in court. We have said it media has published it verbatim. Melaye stated. given codenames.

Senate Forgery Case: Melaye Alleges Attempt to Doctor Evidence

TUESDAY JULY 5, 2016 • T H I S D AY

NEWSXTRA

APGA: Alex Otti Should Be Declared Governor Not Ogah Segun James The political drama happening in Abia State has taken a new turn with the All Progressives Grand Alliance (APGA) demanding that its candidate in the 2015 general election should be declared the governor of the state. The party in a statement by the Abia State Chairman, Rev. Augustine Ehiemere, said it would only be fair that its candidate is declared the rightful governor “since there is no record anywhere to show that Dr. Uche Ogah won the primaries of his party the PDP, let alone to take part in all the stages of the last governorship election in Abia, his declaration as the governor by the court is strange and alien to the law.” According to the statement, “Our humble demand that the appellate court while upholding the Ikpeazu guilty verdict corrects this huge error by issuing the right order which is to declare the candidate that scored the highest lawful votes, the APGA Candidate, Mr. Alex Otti, the governor, as he did not only meet all the constitutional requirements and vote spread across the state, but even won more local governments than the sacked Okezie Ikpeazu; this is an incontrovertible fact.” The statement also disclosed that “APGA and her candidate were excluded from the Aba North House of Assembly rerun after her House of Assembly candidate was removed for allegedly tendering a forged certificate. This was sequel to a petition filed against APGA by PDP after the 2015 House of Assembly election. We do not believe that the PDP should gain from APGA’s failure and turn back to reap from its own failure in the same state because the law is not selective. “As we hold firm to these demands, and expect justice in the end, we unequivocally condemn the recent atmosphere of chaos, insecurity, and uncertainty created in the state as a result of the recent judgment.” The APGA statement said the party “received with mixed feelings of approval

and disapproval, the judgment of Justice Okon Abang of the Federal High Court, Abuja which sacked Dr. Okezie Ikpeazu as Governor of Abia State for tax-related crime and declared Dr. Sampson Uchechukwu Ogah as governor. “First, we commend the judiciary, and specifically Justice Abang for upholding the sanctity of our law which frowns at such heinous crime that retards our economic development, and also for deepening our democratic institution which can only thrive and survive when those who seek to preside over public offices are made to recognise and respect the demands of such offices by being responsible. “Ordinarily, the judgment ought not to have come to any one as a surprise; first, going by the alarming and below standard falsification, distortion, contradiction, inconsistencies, and inaccuracies seen on the tax documents. “And secondly, after the Supreme Court deservedly dismissed the no case submission earlier brought by the accused and directed for the commencement of his trial, which has yielded the expected result, this is a commendable red card that serves as a warning to economic saboteurs, and a deterrent to other apostles of impunity. “However, we humbly disagree with the consequential order by the court which directed for the swearing in of Uche Ogah as the governor. “This order which we consider a huge error is not only unacceptable to APGA, but untenable in the 2010 Electoral Act as amended, which forbids any person that did not take part in all the stages of an election from being declared winner. “Alternatively, the court should order a rerun election that would exclude the PDP and their candidate the way it has been done in some states including Kogi where the elections of two out of the three APC senators and some House of Representatives members were nullified by both High

Omisore: EFCC Has Given Stringent Conditions for My Release Yinka Kolawole in Osogbo Former Deputy Governor of Osun State, Iyiola Omisore, yesterday said the Economic and Financial Crimes Commission (EFCC) has given him stringent conditions for his release. Omisore in a statement by his spokesperson, Prince Diran Odeyemi and made available to THISDAY yesterday in Osogbo, noted that “EFCC in a letter handed over to Omisore after several hours of interrogation asked him to produce two serving Directors in any of the federal ministries

or agency with landed property in millionaire quarters of Maitama or Asokoro area of Abuja while the sureties must submit the original C of O of the said landed properties.” According to him, “We know too well of a standing instructions to serving civil servants not to stand as Sureties in any matter and wonder why EFCC is giving a condition they have already blocked.” He pointed out that “We will approach the court to seek Omisore’s release and wonder why the EFCC has turned itself in to an agent of persecution instead of prosecution,” he submitted.

and Appeal courts because they were ab initio improperly nominated, thus they and their party the APC were excluded in all the rerun elections.” Ehiemere said as a party, APGA wouldn’t support the removal of Okezie Ikpeazu as governor surreptitiously “as we insist that two wrongs cannot make a right. We, however, frown at his desperate decision to employ all forms of dangerous and anti-people tactics in remaining in power, including the release of millions of tax payers’ money with which thugs were hired from the 17 local government areas of the state and unleashed on the state capital, including the Government House. “This is most despicable

considering that civil servants in the state are being owed 5 months salaries. We also condemn the alleged abduction and hiding of the state Chief Judge, thus preventing her from carrying out her primary responsibilities of justice adjudication. Procurement of a black market order from an Osisioma High Court against the judgment that sacked Ikpeazu, even when it is a fact in law that a court of concurrent jurisdiction cannot set aside or prevent the implementation of the judgment of another. “The last but not the least is the deceitful and destructive declaration of two days public holidays which the government ridiculously claimed was in honour of the late Chief Ojo

Maduekwe. The declaration of the two days public holidays by Ikpeazu is to say the least the worst form of reckless abuse of power, as the declaration which was actually carried out to halt the functions of government institutions that might be needed to implement the verdict against him took Abians by surprise, crippled economic activities, and subjected Abians of all classes to untold hardship as they besieged banks in Imo and Rivers states for their financial transactions with the attendant risk of traveling on the road, while those who could not do so had their businesses and urgent financial needs halted. “This unjust action clearly

manifests Ikpeazu as an unserious minded leader devoid of knowledge of the essence of democratic governance nay economic productivity, and as one who considers his personal political interest superior to the needs of the suffering masses. “Finally we demand that all gladiators take a cue from our candidate and the man millions of Abians unanimously believe won the governorship election, Mr. Alex Otti, whose peaceful mien in the face of senseless attacks, and adherence to constitutionality before, during, and after the elections saved Abia from being plunged into anarchy, by being responsible and await the decision of the courts in the whole matter.”

MEDIA EVENT

L-R: Managing Director/CEO, Red Uhuru Advertising Agency Limited, Demola Olusunmade; Chairman/CEO HS Media Group, Taye Ige; and Executive Director, Corporate Services, UACN Plc, Joe Dada, at the unveiling of ‘UAC Unscripted’ – a Family TV Game show - at HS Media Group complex in Oregun, Lagos ...recently

Anambra PDP: Court Orders INEC Chair to Appear Personally to Answer Contempt Charges

Threatens arrest if he shuns court on Thursday Tobi Soniyi in Abuja A Federal High Court in Abuja has ordered the Independent National Electoral Commission (INEC) and its Chairman, Prof Mahmood Yakubu, to appear before it to answer to contempt proceedings pending against them. Justice John Tsoho gave the order yesterday while ruling on arguments on whether or not the physical presence of INEC and its Chairman was necessary afor the court to determine the contempt proceedings initiated against them by Ejike Oguebego and Chuks Okoye- Chairman and Legal Adviser of the Peoples Democratic Party (PDP) in Anambra State. The judge rejected the argument by lawyer to INEC and Yakubu, Chief Adegboyega Awomolo (SAN) to the effect

that the nature of the contempt proceedings against his clients was civil and could be determined without their physical presence. Justice Tsoho said whether civil or criminal, contempt proceedings were always quasicriminal, which required the physical presence of the alleged contemnor in court for him/her to be heard on whether or not the order of committal should be made. Relying on the provisions of Order 9 Rule 14 of the judgment enforcement rules, Justice Tsoho said it was the duty of the court’s Registrar to issue and serve Forms 48 and 49 on a party in disobedience of court’s order for him/her to attend court, failing which a bench warrant might be issued against him/her to attend court and show cause. “I hold that the alleged contemnors are under obligation

to appear before this court to show cause why an order of committal should not be made against them,” the judge said. Justice Tsoho, who specifically directed the alleged contemnors to present themselves in court on Thursday (July 7), said a bench warrant would be issued for their arrest should they refuse to attend court on the next adjourned. Oguebego and Okoye, who are suing for themselves and on behalf of other members of the executive committee of the PDP, Anambra State, are accusing INEC and Yakubu of refusing to obey the December 5, 2015 judgment of the Federal High Court, Abuja delivered by Justice Evoh Chukwu. Justice Chukwu had, in the fifth order as contained in the judgment, restrained INEC, its agents, among others “from accepting or receiving any delegate list or nominated candidates that may emerge from the congresses

or primaries conducted by the caretaker committee set up by the 1st defendant (PDP) for the Anambra PDP, except those that emanate from the plaintiffs.” Bothered by INEC’s alleged refusal to comply with the judgment, particularly the 5th order, Oguebego and Okoye initiated contempt proceedings against the INEC Chairman before the Federal High Court, Abuja. On May 20, Justice Tsoho granted an order ex-parte for substituted service of processes in relation to the contempt proceedings, including Form 48, on Yakubu. For service on the INEC boss, Justice Tsoho directed the plaintiffs to serve the court processes, including Form 48 on “an adult person, staff or official at the Legal Department of INEC at No: 436 Zambezi Crescent, Maitama, Abuja, being the usual place of business of the 2nd respondent (Yakubu).

TUESDAY JULY 5, 2016 • T H I S D AY

CRIME&PUNISHMENT Prisons Boss Urges FG to Commute 168 Death Row Inmates to Life

Chiemelie Ezeobi The Controller of Prisons, Lagos State Command of the Nigerian Prisons Service (NPS), Tinuoye Olumide, has called on both the federal government and the judiciary to commute the life sentences of 168 condemned inmates in the command to life imprisonment. Olumide made this disclosure at the welcome ceremony organised by the Deputy Controller of Prisons (DCP), Kirikiri Female Prisons, Mrs. Lizzie Ekpendu, for him in Lagos. Ekpendu, who said her sole desire was to see the judiciary set free those on awaiting trial list so that they can fulfill their destinies, said they decided to host the new comptroller to intimate him on the needs of the residents of the prison. Fielding questions from journalists afterwards, the controller, who recently resumed work in Lagos, unveiled his

plans for the command and the prisoners in general, especially the condemned ones. THISDAY gathered that the 168 condemned inmates are spread across the Maximum Prisons and Minimum Prisons in Kirikiri Town, Apapa, as well as the Ikoyi Prisons. On the major challenge he plans to tackle first he said: “First, the problem we have majorly is that of awaiting trials. Now that I have come to Lagos, I would like to liaise with Ministry of Justice most importantly so that inmates who have stayed longer don’t have any reason to be in the prisons. “Another thing, I definitely want to address is the issue of condemned prisoners. As I speak now, we have a total of 168 condemned inmates. “Globally as it were, nations are gradually living the issue of killing people even when such committed an offence. “I think that is a general thing. I would like to ensure

that those who are condemned, their sentences are converted to life imprisonment. “By that, we would be able to decongest the cell where they are. We have a lot of prisons that can take life imprisonment inmates. That is definitely what we are going to do.” Based on the recent issue of jail breaks in some states, he said: “When people say prison break, to us that are working in the prisons, it means that the inmates in the prisons rioted and they broke the jail and got away. “I want us to get the two concepts – prisons breaks and escapes. Escapes is not new to the prisons and with every escapes that happen, whether here or maybe in foreign countries, it is a sign that there is security lapse somewhere and we need to block that loophole. “The recent escapes that we had, we need to see that all those areas that need to be

amended, all those security features that need to be enhanced are improved and that is what we need to be doing.” Also speaking on the issue of discipline he said: “Those that committed offences against the laws of the prisons services are being tried. A lot of them are being dismissed and a lot of them are reduced in ranks and a lot of them are being punished “But if the offence is just very minor, we give them extra duty but if the offence is such that could warrant bringing drugs in, we have handed a lot of our offences to the National Drug Law and Enforcement Agency (NDLEA). “Sometimes, we handover to the police authorities for prosecution where they committed crimes that are criminal offence. Prisons service is a very discipline service, we don’t take laxity. If you commit an offence, definitely you will be punished.”

In Brief

Brothers to Spend 30 Years in Jail for Rape Two brothers aged 30 and 33 years are to spend total of 30 years behind bars for allegedly gang-raping a 12-year old girl about a year ago at Ibusa, Oshimili North Local Government Area of Delta State. This was the verdict of an Akwukwu-Igbo High Court presided over by Justice Marcel Okoh, before who the prosecution from the Delta State Ministry of Justice had dragged the brothers, 30-year-old Chukwuedo Mogaha and Amaechi Mogaha aged 33 years. The court held that the prosecution was able to establish the essential ingredients of conspiracy and rape against the first accused person, Chukwuedo Mogaha and was sentenced to seven years in jail for conspiracy to commit rape and 14 years with hard labour for the substantive offence of rape. For the second accused person, Amaechi Mogaha, Justice Marcel Okoh, held that prosecution was only able to prove the count of conspiracy and failed in the count of rape against the accused. He was however sentenced by the court to seven years in jail for count one while he was sentenced two years imprisonment with hard labour for indecent assault of girl under 13 years old. However, the sentences are to be served be the convicts concurrently. An Assistant Chief State Counsel from the Delta State Ministry of Justice, A. P. Popo (Miss) had told the court that the two brothers, Chukwuedo Mogaha and Amaechi Mogaha on or about June 6, 2015 at Ibusa, within the Akwukwu-Igbo Judicial Division, did conspire and executed their act of conspiracy by raping the 12 years old girl (name withheld) thereby , committed an offence punishable under sections 516 and 358 of the Criminal Code, Cap C21 Volume 1, Laws of Delta State of Nigeria, 2006.

Court Adjourns Dasuki’s Motion to Consolidate Cases to July 11 An Abuja High Court yesterday adjourned to July 11 a motion to consolidate cases against the former National Security Adviser, Col. Sambo Dasuki. Dasuki was arraigned for alleged diversion of N13.6 billion. He is being tried alongside Shuaibu Salisu, a former Director of Finance, Office of the NSA, and Aminu Baba-Kusa, a former Executive Director with the Nigerian National Petroleum Corporation (NNPC) The News Agency of Nigeria (NAN) reported that also being tried are two firms, Acacia Holding Limited and Reliance Referral Hospital Limited. Justice Hussein Baba-Yusuf, who adjourned the case, said it would allow Chief Akin Olujimi (SAN), counsel to Salisu, to be present in court. At the last sitting, Dasuki’s counsel, Mr. Joseph Daudu (SAN), had prayed the court to consolidate the cases against his client. The cases were before Baba-Yusuf and Justice Peter Affen. Daudu sought for an order directing the prosecution to amend charge pending before Baba-Yusuf, to include the counts in the suit before Affen. He said his prayer was pursuant to sections 6(6)(a), 35(5) and (9) of the 1999 Constitution as amended, and sections 1(1); 208; 396(3); 401and 492(3) of the Administration of Criminal Justice Act 2015. At the resumed hearing yesterday, the motion was not moved because of the absence of Olujimi. Daudu and Mr. Solomon Umoh (SAN), counsel to Baba-Kusa, said the motion should be moved in the presence of Olujimi.

WE SYMPATHISE WITH YOU

L-R: Oyo State Governor, Senator Abiola Ajimobi; Speaker of the sate House of Assembly, Hon. Michael Adeyemo; and widow of the slain member of the assembly, Mrs. Bukola Aremu (right), during a condolence visit to the residence of the deceased, in Ibadan... yesterday. OYO STATE GOVT

Lagos Police Foils Kidnap Attempt on Man, Family

NSCDC Arrests 11 Persons for Alleged Vandalism

Chiemelie Ezeobi

MohammedAminuinSokoto

Policemen attached to the Lagos State Police Command at the weekend foiled a kidnap attempt on one Oluseun Oguyemi, his wife and three children, by some suspected kidnappers at the Ayobo area of the state. The kidnappers numbering about nine, were said to have stormed Ogunuemi Street at Ijon community, in Ayobo, in a speed boat and attempted to kidnap the family. However, their plans were foiled by the police, who had gotten wind of the attack and set up things in motion to not just thwart it, but to also arrest the suspects. The state Commissioner of

Police, Mr. Fatai Owoseni, who visited the community yesterday said the police engaged the kidnappers in a gun duel and rescued the wife and children after the husband escaped. He noted that the command would henceforth deploy the marine policemen to the area The victim, Ogunyemi, who said he had no idea why his family was targeted said: “I went out to ease myself and on my way back inside, I saw a man who said he would kill me if I shout. “I also noticed three men holding guns. I miraculously escaped but they left with my family but the police rescued them. I am grateful tothe police for rescuing my family.”

Nigeria Security and Civil Defence Corps ( NSCDC), Sokoto Command, yesterday said it arrested 10 security guards and a receiver, for allegedly vandalising the Sokoto State Independent Power Project ( IPP). The NSCDC Commandant, Mr. Babangida Aliyu, made this known while parading the suspects before newsmen in Sokoto. He said the command had on May 24,2016, received a complaint from one Mr. Prince Franklin, a Director of the contracting firm of the project, that parts of their equipment had been vandalised by the security guards employed to guard them. He stated that the intelligence personnel of the command immediately swung into action and arrested the 10 security guards and the receiver on the same day. “Seven other suspects are currently at large, but we have spread our

dragnets to apprehend them soon,”he said. According to him, some of the items that had been pilfered by the suspects include arrmoured cables and transformer oil. Aliyu pointed out that the command had since concluded its investigations and would hand over the suspects to the office of the State Attorney-General for prosecution. On the Eid-il-fitr festivities, the NSCDC boss said no fewer than 870 personnel had been deployed across the state. He explained that all divisions, departments and units would fully participate in the operation, saying all Eid praying grounds, critical infrastructure, public and private would be covered for 24 hours. Aliyu therefore, appealed to the people of the state to continue to be law abiding, so as to ensure hitch- free festivities.

...Sacks Ekiti PDP Lawmaker, Blasts Party for Shoddy Primaries

The Federal High Court sitting in Ado Ekiti, yesterday nullified the election of a People’s Democratic Party(PDP)member representing Ado Constituency 1, Mr. Musa Arugundade and declared Mr. Toyin Obayemi of the same party as the validly elected candidate in the April 11, 2015 general elections. The Court held that after the disqualification of the winner of the primaries conducted on November 29, 2014, Mr Talabi Odunayo over alleged certificate falsification that Obayemi would have been used as replacement, having come second in the primaries in compliance with sections 31 and 36 of the electoral act. Delivering his judgement, Justice Taiwo Taiwo lambasted the PDP for fraudulently acquiring the judgement before Justice Evoh Chukwu of the Federal High Court in Abuja through which Arogundade was fielded as replacement to Talabi in Ado constituency 1 . The jurist averred that it was a mark of arbitrariness and non-compliance with the provisions of the extant rules for the PDP to have reduced such a sensitive matter that borders on infringement of rights of an aspirant to a mere party affairs. He said Arogundade, having wrongly been used as a substitute lacks the locus standi to obtain an order compelling INEC to use him as a replacement and the court set aside the order on this premise. Justice Taiwo said while he shared the opinions of the 2nd, 3rdand 4th respondents’ reliance on the Supreme Court’s judgement in the case of Alhassan Vs Ishyaku which gave power to choose a candidate in election on the political party, Justice Taiwo said such is not applicable to when valid primaries was conducted . He also blasted the INEC for “playing the ostrich and bury its head in the sand while all these were going on”, he said. Justice Taiwo added : “I will be shirking in my responsibility if I fail to express disappointment with the attitude of the 2nd respondent(PDP). Its action was very worrisome and issue like this goes beyond the internal affairs of a political party , because it can bring about arbitrariness and imposition of candidate.

T H I S D AY • TUESDAY, JULY 5, 2016

TUESDAYSPORTS

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

TRANSFER

Ahmed Musa for Leicester Medical Wednesday Super Eagles Vice-captain, Ahmed Musa, will undergo a medical with Leicester City tomorrow before signing a five-year contract with the Premier League champions. “Everything has been finalised and Musa will be in England for his medical on Wednesday,” Musa’s agent Tony Harris told BBC Sport yesterday. Russian champions CSKA Moscow announced the 23-yearold Ahmed Musa will depart Moscow today for England. Leicester, who first put in a bid for the jet-heeled winger in January, have now agreed a transfer fee of $21 million. The surprise champions of the Premier League will make

the Nigeria international their fourth signing thus far, with centre-back Luis Hernandez, goalkeeper Ron-Robert Zieler and midfielder Nampalys Mendy having already signed. Musa’s soon to be former coach Leonid Slutsky said the Nigerian – who scored 53 goals in 161 matches for CSKA since joining them in 2012 – would be ideal for the Premier League. “If you look at the way things are done over there you’ll see he is a player just made for English football,” Slutsky said. According to the BBC Musa rejected the advances of Leicester’s rivals Southampton, Everton and West Ham.

Hotshot Obaje Leads NPFL All-Stars Invitees to Camp Joint leading scorer of the Nigeria league Godwin Obaje will lead 29 other players for a training camp in Abuja preparatory to a series of friendlies against La Liga clubs in Spain next month. Wikki Tourists striker Obaje is joint leading scorer in the league with 13 goals, same as Sunshine Stars striker Afolabi Okiki. Other players penciled down for the training camp

include goalkeeper Emeka Nwabulu, Charles Henlong, Alhassan Ibrahim (Wikki), Jamiu Alimi, Rabiu Ali, Ifeanyi Matthew (Pillars), Ifeanyi Ifeanyi, Sikiru Olatunbosun (MFM) and Gabriel Wassa (Niger Tornadoes). The training camp will open next Monday in Abuja. The Nigeria All-Stars will play friendlies against Valencia and Malaga in Spain in August.

Wimbledon 2016: Serena Berths Last Eight Six-time champion Serena Williams yesterday overcame a first-set blip to reach Wimbledon’s last eight with a straight-sets win over Svetlana Kuznetsova. Williams, 34, defeated the Russian 7-5 6-0 to set up a quarter-final with Anastasia Pavlyuchenkova. Kuznetsova failed to serve out the first set and before rain halted play the top seed was far from her best. But under the Centre Court roof, Williams was supreme, winning eight games on the trot to secure victory. From trailing 3-1, twotime Grand Slam champion Kuznetsova twice broke Williams’ serve for a chance to serve for the set, but the defending champion immediately broke back to level at 5-5 before play was suspended because of light rain. When the players returned to the court the roof

had been closed and the indoor conditions favoured Williams’ big serve, with Kuznetsova failing to win a game as the world number one confidently secured the first set and, without further loss of a game, the match. “She has played really well against me in the past and beat me earlier this year so I knew I had to play well to win,” Williams told BBC Sport. “It was really tricky out there. It wasn’t raining hard but was dewy and on the grass you can fall easily then you think ‘should I run or not’ and it became more difficult because of that.” Having played on middle Sunday, Williams will now play on three successive days at SW19. “In order to win a tournament you usually have to play quarter-finals, semi-finals and finals backto-back,” said Williams.

Ahmed Musa is set for Leicester City medical tomorrow

Paul Bassey to Lecture CAF Match Commissioners

The Confederation of African Football (CAF) has invited Nigeria’s Paul Bassey to superintend over the CAF Match Commissioners seminar scheduled for Cairo from July 11 to 17. A letter from the African soccer ruling body invited the respected FIFA and CAF match commissioner to serve as an instructor for the match commissioners who have been

invited by CAF to come and refresh their knowledge of the round leather game as the sport gets sophisticated by the day. CAF it will be recalled is in the vanguard of technological match assessment and reporting with the institution of the CAF Competitions Management System (CMS) which is an online reporting tool for match officials.

“Most match commissioners, referees, coordinators and other officers are yet to come to grasp with the CMS so we have to organise seminars like this to bring them up to date,” CAF source said yesterday. Paul Bassey, Chairman Akwa United and member NFF’s Technical and Development Committee was the designated General

MFM FC Hails Ambode The management of Mountain of Fire and Miracles Ministries Football club of Lagos has hailed the executive Governor of Lagos state, Mr Akinwunmi Ambode for his physical presence last Sunday during the Nigeria Professional Football League (NPFL) game between MFM FC and Ikorodu United Football Club at the Agege Stadium. According to the club’s Chairman, Mr Godwin Enakhena, the governor’s presence at the stadium rubbished the notion that

Ambode does not like sports. “I was aware that the governor had plans to come to Agege Stadium to watch MFM FC play Ikorodu United Football Club but I had my doubts that he might not make it due to pressing state matters. “But it was a pleasant surprise when he came into the arena quietly without sirens. His presence also put to bed the notion that he’s not a sports person,” recalled Enakhena. “You needed to see the

excitement on everyone’s face, including fans, players and officials of both teams. I was also glad that the game lived up to the hype that comes with local derbies”, the MFM FC boss said excitedly. The encounter which saw MFM FC put three goals past Ikorodu United FC goalkeeper, provided the Olukoya Boys an opportunity to show Governor Ambode their appreciation by presenting him with MFM FC customised home and away

Coordinator for the botched Champions League clash between Zamalek and Setif. The veteran journalist in the past three years has being the lead resource person in the NFF Pre- season match commissioners’ seminar. Chairman Technical Committee and Board Member of the NFF, Chris Green, will be a participant in the Cairo Seminar.

jerseys with No 1 and Ambode written at their backs. In his response, the governor sent his greetings to MFM General Overseer, Dr Daniel Olukoya for his youth empowerment programmes one of which is MFM FC. He pledged to revamp football at the grassroots in the state with an annual football league that will have a club represent each of the 57 Local Government and Council Development Areas in Lagos State.

Tuesday July 5, 2016

UT H

& RE A S O

Price: N250

MISSILE Senate to AGF “When the Senate invited the AGF to come and throw light on the forgery case, it was not to challenge his right to file, take over or discontinue any criminal case but for him to explain the issues of conflict of interest, abuse of office, disrespect of a subsisting order of a court and violation of the principle of separation of powers which are being raised against him.” The Senate accusing the Attorney General of the Federation (AGF) and Justice Minister, Abubakar Malami, of acting a personal and partisan script and also abusing his position as the nation’s chief law officer following the arraignment of Senate President Bukola Saraki, his deputy Ike Ekweremadu and two others in a court for alleged forgery of Senate rules.

eniola.bello@thisdaylive.com

@eniolaseni 08055001956

It’s Electricity, Stupid!

gain, hostilities resumed in the creeks weekend, with the Niger Delta Avengers (NDA) bombing Chevron and NNPC (Nigerian National Petroleum Corporation) facilities. And this is despite entreaties from the highest levels of government and a supposed one-month ceasefire to prepare ground for negotiations. Indeed, twice in one week, President Muhammadu Buhari has had cause to plead with the militants, who had in the last several months carried out a war of attrition in the creeks, to exercise patience with his government and embrace peace. Buhari had told a delegation of the Niger Delta Dialogue and Contact Group, last Thursday, that he was studying the gazette on the Niger Delta Amnesty Programme of the Umaru Musa Yar’Adua administration and promised to address all outstanding issues. The weekend before the meeting with the Niger Delta delegation, Buhari had, while breaking the Ramadan fast with some leaders of his party, the APC (All Progressives Congress), called on the militants to stop the violence. In apparent frustration, if not helplessness, Buhari had pleaded, “For those of you who have friends, either among the leadership, or among the militants themselves, please beg them in the name of God Almighty to take it easy. We need to stabilize the economy to create employment.” The president’s 180-degree turn from the initial belligerence of his administration’s handling of the renewed violence in the Delta region may have been due to dwindling government revenue, particularly in the face of a recession. When militants belonging to the NDA began vandalizing oil and gas pipelines, the Buhari administration threatened to treat them like Boko Haram insurgents. To make good its threat, troops were deployed to track down the militants responsible for the pipeline vandalism. The situation, however, degenerated with increased sabotage of oil and gas pipelines, bombing of oil flow stations, kidnapping and killing of oil workers. The result was the disruption of oil production operations, sharp drop in Nigeria’s capacity to meet its quota, and with that, a further dwindling of government revenue. There was also the cutting off of gas supply to power plants resulting in worsening electricity shortages. Avoiding a direct confrontation with the troops on ground, the militants embarked on a successful strategy of wearing down the administration by resorting to small scale actions targeted at the oil and gas infrastructure. In no time, the administration came to the realization that so long as oil remains the treasure base of the nation, it will be strategically unwise to put the Niger Delta militants and the Boko Haram insurgents in the same box. With the military unable to stop the serial vandalism and incessant bombings, the administration had to change track by calling for ceasefire, withdrawing its troops, and offering to negotiate. With the weekend bombings of Chevron and NNPC facilities, the one-month ceasefire barely lasted two weeks. The administration may be worried about the immediate decline in government revenues arising from a drop in oil production, but I’m even more worried about the negative impact of militant activities on power generation. Growing up in the village as a child of the 60s, when the flame of the kerosene lantern was the most effective means of attending to your school assignment and lighting up your room and finding your way to a neighbours’s as a courier for your parents and casting huge menacing shadows from the dark night as the family sits in the courtyard expectantly waiting for God’s own light in the new moon, I probably did not understand what electric light meant until I was admitted to a general hospital in Kabba, some 15 minutes drive away. I remember how the magic touch on the wall resulted in the luminous brightness of the florescent bulb. I remember seeing the rainbow reflection on the ceiling change from white

Buhari to blue to yellow, all at the same time as, lying on the hospital bed, my big eyes rolled from one end of the ward to another and back. I remember wrestling with sleep later in the night, how my eyes, already used to the very weak lighting from the flame of the kerosene lantern, struggled to keep out the brightness of the fluorescent bulb. I however began to understand the importance of electricity when I got admission to high school in the late 70s and was sent to the boarding house. Between then and now, long after my village had been connected to the national grid, Nigeria has still not been able to overcome the challenge of power shortages. Indeed, nobody born in, and has lived in this country in the last 50 years, would not have suffered the debilitating effect of electricity outages. How one singular problem could hold down the country for so long is baffling. Indeed, the headline to this piece, an adaption of then US president’s Bill Clinton’s campaign interview in 1993 of politics being the problem, drives the point home. Every administration since this democratic project started in 1999 has made a song, if not an anthem, of generating 10,000 megawatts. Yet 17 years on, Nigeria is still struggling with slightly above 5000 megawatts, that is, when the power plants operate at full capacity. But more often than not, the power plants never operate near full capacity at any time. Take Egbin Power Plc., the biggest power plant in Nigeria, for instance. Acquired in 2013 by Sahara Group, through KEPCO Energy Resources Ltd., with an installed capacity of 1,320 megawatts, the new owners have difficulty keeping the plant operational at 87 per cent revamped capacity due to gas supply problems. Before privatization, the plant generated 300 megawatts at the best of times, with none of the six units fully operational. With $328 million invested since the plant’s privatization, and for the first time in 35 years, three of the six units completely overhauled and one other unit restored, Egbin can generate, with gas availability, 1100 megawatts. But then, gas, with vandals’ relentless attacks on the pipelines, does not seem to be ever readily available. At the peak of the attacks on oil facilities by the Avengers early last month, there was a system collapse when generation suddenly dropped at Egbin from over 800 megawatts to about 200 megawatts resulting from a cut off in gas supply. In the same way, the latest attacks on Chevron facilities in the Escravos has taken out Olorunsogo plant, with a generation capacity of 600 megawatts and daily loses of N470 million. Despite the unbundling of the 18 business units under the behemoth Power Holding Company of Nigeria (PHCN) in 2013, the challenge of incessant power shortages is still a long way from being

resolved. Investors who acquired controlling shares in the generation and distribution companies have enough problems growing their investment without having to worry about gas unavailability. There is the problem of government inability to make up its mind if electricity should continue being a social service and remain unfunded and unavailable, or an economic product with market determined pricing for it to attract investment. There is also the problem of government refusal to privatize transmission, as it did generation and distribution. The Transmission Company of Nigeria (TCN) is singularly authorized to carry all electricity generated in the power plants to the distribution companies. The TCN does not perform this role efficiently as it does not ever pay the generating companies for the electricity it transmits because the distribution companies have problems collecting payment for electricity consumed by government institutions, usually the biggest debtors. Cutting off gas supply to power plants will arrest the little progress made since the privatization of the electricity sector. If investors in the generation companies are going to continually have plants that may not be able to generate anything near cost recovery, how will they make profit or pay down banks facilities or even commit to further investment? Why should they not consider pulling out, at some point? It is for this the government has to work hard and fast to stop the activities of vandals in the Niger Delta. To opt for the military option will be economically costly, and most likely end in a humanitarian disaster. And to settle for negotiations is no more than rewarding criminality. For if the Niger Delta Amnesty Programme as implemented by the Goodluck Jonathan administration was any guide, while the

militant leaders were obscenely enriched, the basic problems of the region in the areas of infrastructure deficit and oil spill and poverty were barely addressed. In the medium to long term, it is unlikely the continued implementation of the Amnesty Programme will bring the desired result. For the continued enrichment of militant leaders can only bring about the formation of new groups of Avengers and Revengers. The revenue involved is an ever-attractive weapon of blackmail. And the Niger Delta region, either through official or unofficial channels, or even a combination of both, are masters of that art. The way forward is to demobilize that weapon by allowing the region keep its oil and simply pay tax to the federal government. That is how all other federations of diverse nationalities, either in a presidential, parliamentary or even monarchical system of government, are structured to work. The report of the 2014 National Conference is a good place to begin the process of reviewing the 1999 Constitution to restructure Nigeria as a proper federation. It is a good thing the House of Representatives has had a buy-in. The Senate should do the same. Dr. Usman Bugaje and his colleagues in the Northern Leaders’ Conference, who delude themselves that the North owns the crude oil because it controls 72 percent of the total land mass in the country, are free to leave the comfort of their homes in Abuja and Kaduna and invade the creeks to claim ownership. I have no doubt the militants will welcome them with open arms. What I do know is that this country cannot take off, much more develop, so long as the power situation remains in this parlous state. The cost of electricity outages to individual Nigerians, to companies, and to the nation is too much.

Printed and Published in Lagos by THISDAY Newspapers Limited. Lagos: 35 Creek Road, Apapa, Lagos. Abuja: Plot 1, Sector Centre B, Jabi Business District, Solomon Lar Way, Jabi North East, Abuja . All Correspondence to POBox 54749, Ikoyi, Lagos. EMAIL: editor@thisdaylive.com, info@thisdaylive.com. TELEPHONE Lagos: 0802 2924721-2, 08022924485. Abuja: Tel: 08155555292, 08155555929 24/7 ADVERTISING HOT LINES: 0811 181 3086, 0811 181 3087, 0811 181 3088, 0811 181 3089, 0811 181 3090. ENQUIRIES & BOOKING: adsbooking@thisdaylive.com