Tuesday 12th July 2016

Court Vacates Order to Take over Jimoh Ibrahim’s Companies AMCON, businessman to explore amicable settlement

Davidson Iriekpen Justice Abdulazeez Anka of the Federal High Court in Lagos yesterday vacated the interim order granted to the Assets

T H I S D AY S P E C I A L R E L E A S E Management Corporation of Nigeria (AMCON) to take over some assets belonging to businessman,

Mr. Jimoh Ibrahim, over his alleged indebtedness to the corporation.

The judge set aside the

ex-parte order following an application by AMCON’s lawyer, Mr. Yusuf Ali (SAN) that the parties in the suit had decided to explore an amicable settlement of the dispute.

Justice Saliu Saidu had on June 14, 2016, granted AMCON an interim injunction against NICON Investment Limited, Global Fleet Oil & Gas Limited and Ibrahim.

But NICON Insurance Limited, Nigeria Re-Insurance Hotels Limited, Abuja International Hotels Limited Continued on page 6

Theresa May to Step in as Britain’s New Iron Lady Tomorrow...

Page 6

Tuesday 12 July, 2016 Vol 21. No 7747. Price: N250

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IMF: Nigeria’s Economy Likely to Contract This Year Country moves up to 169 in World Bank Doing Business ranking Five ministers head for investment roadshow in London

Obinna Chima with agency reports

Nigeria’s economy will probably contract this year as energy shortages and the delayed budget weigh on output, according to the

International Monetary Fund (IMF).

“I think there is a high likelihood that the year 2016 as a whole will be a contractionary year,” Gene Leon, the fund’s resident representative in Nigeria,

said in an interview with Bloomberg in Abuja recently.

While the economy should look better in the second half of the year, growth will probably not be sufficiently fast, sufficiently rapid to be able to negate the outcome of

the first and second quarters, he said.

Africa’s largest economy shrunk by 0.36 per cent in the three months through March, the first contraction in more than a decade, as oil output and prices slumped and the

approval of spending plans for 2016 were delayed.

A currency peg and foreignexchange trading restrictions, which were removed last month after more than a year, led to shortages of goods from gasoline to milk and

contributed to the contraction in the first quarter.

While conditions that impeded growth in the first half of the year, including shortages of power, fuel, and Continued on page 6

Buhari Considers Hadiza Bala Usman as Head of NPA

If appointed, she will be the first female to head the authority Abiodun Eromosele In a bid to inject a fresh pair of hands to run the Nigerian Ports Authority (NPA), the Minister of Transportation, Mr. Chibuike Amaechi, has submitted Ms. Hadiza Bala Usman’s name to President Muhammadu Buhari to take over as the new managing director of NPA, THISDAY has learnt.

Should Buhari approve the recommendation, Ms. Bala Usman, 40, will become the first female chief executive of a top tier federal government

agency and of the NPA. She shall take over from Alhaji Habib Abdullahi, who was reinstated by Buhari in August 2015 as the managing director of NPA, after he had been shown the exit by former President Goodluck Jonathan in April 2015.

Sources in the presidency, who confirmed that Ms. Bala Usman’s name had been sent to the president, said Amaechi had decided to make the changes in order to overhaul the NPA. Continued on page 8

Sex Scandal: US Envoy to Provide Video Evidence against LawmakersThursday… Page9

Senate President Abubakar Bukola Saraki (left), during a courtesy visit to the Sultan of Sokoto, Alhaji Muhammad Sa'ad Abubakar III, when he was in Sokoto State to commiserate with the family of the former Director General of the Nigerian Security Organisation (NSO), the late Alhaji Umaru Ali Shinkafi… yesterday

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Theresa May to Step in as Britain’s New Iron Lady Tomorrow Zacheaus Somorin with agency reports Britain will make history tomorrow when its Interior Minister, Theresa May, becomes its next prime minister and the second woman to hold the post after Margaret Thatcher.

Ms. May will have the task of steering Britain’s withdrawal from the European Union (EU) after her only rival, Energy Minister Andrea Leadsom, abruptly pulled out of the Conservative leadership race.

May, 59, will succeed David Cameron, who had announced he was stepping down after Britain’s unexpectedly voted last month to quit the EU, but yesterday said he would resign tomorrow paving the way for Ms. May to move into No. 10 Downing Street.

Britain’s planned withdrawal has weakened the 28-nation bloc, created huge uncertainty over trade and investment, and shaken financial markets.

May and Leadsom had been due to contest a ballot of around 150,000 Conservative party members, with the result to be declared by September 9. But Leadsom unexpectedly withdrew yesterday, removing the need for a nine-week leadership contest.

According to Reuters, Cameron told reporters in

front of his 10 Downing Street residence that he expected to chair his last cabinet meeting and take questions in parliament tomorrow before tendering his resignation to Queen Elizabeth II. “So we will have a new prime minister in that building behind me by Wednesday evening,” he said.

Her victory means that the complex process of extricating Britain from the EU will be led by someone who favoured a vote to 'Remain' in last month’s membership referendum.

She has said Britain needs time to work out its negotiating strategy and should not initiate formal divorce proceedings before the end of the year, but has also emphasised that “Brexit means Brexit”.

In a speech early yesterday in the central city of Birmingham, Ms. May said there could be no second referendum and no attempt to rejoin the EU by the back door. “As prime minister, I will make sure that we leave the European Union,” she said.

Leadsom, 53, never served in the cabinet and was barely known to the British public until she emerged as a prominent voice in the successful Leave campaign.

She had been strongly criticised over a newspaper interview in which she

appeared to suggest that being a mother meant she had more of a stake in the country’s future than May, who has no children.

Some Conservatives said they were disgusted by the remarks, for which Leadsom later apologised, while others said they showed naivety and a lack of judgment.

Leadsom told reporters she was pulling out of the race to avoid nine weeks of campaign uncertainty at a time when strong leadership was needed. She acknowledged that Ms. May had secured much greater backing in a vote of Conservative members of parliament last week.

“I have ... concluded that the interests of our country are best served by the immediate appointment of a strong and well supported prime minister,” she said. “I am therefore withdrawing from the leadership election and I wish Theresa May the very greatest success. I assure her of my full support.”

Graham Brady, head of the Conservative party committee in charge of the leadership contest, said there were still constitutional procedures to be observed before her appointment could be confirmed, but he aimed to make a confirmation announcement as soon as

possible.

“We’re not discussing coronations, we’re discussing a proper procedural process which should conclude very soon,” he told reporters.

The pound, which had hit 31-year lows since the June 23 referendum vote on concern about potential damage to the British economy, bounced briefly on the news that the Conservative leadership question would be resolved much sooner than expected, reported Reuters.

“Welcome news we have one candidate with overwhelming support to be next PM. Theresa May has strength, integrity and determination to do the job,” Finance Minister, George Osborne, tweeted.

The 52-to-48 per cent vote to quit the EU after 43 years of membership was a stunning rebuke to Britain’s political leaders and especially Cameron, who had argued that breaking away would bring economic disaster.

Britons ignored his warnings, swayed by the arguments of the Leave campaign that “Brexit” would enable them to regain “independence” from Brussels and clamp down on high immigration, something hard to achieve under EU rules allowing people to live and work anywhere in the bloc.

Ms. May’s leadership hopes had appeared at risk of being damaged by her failure, in six years as Interior Minister, to bring immigration down, and the fact she found herself on the losing side of the referendum campaign.

But her two best-known rivals on the Leave side were felled by political back-stabbing when Justice Secretary Michael Gove brought down former London Mayor, Boris Johnson and was then punished for his perceived treachery by being eliminated from a ballot of Conservative MPs. In her speech in Birmingham, Ms. May set out her vision for the economy, calling for “a country that works for everyone, not just the privileged few”.

In a pitch for the political centre, she said she would prioritise more housebuilding, a crackdown on tax evasion by individuals and companies, lower energy costs and a narrowing of the “unhealthy” gap between the pay of employees and corporate bosses.

“Under my leadership, the Conservative Party will put itself completely, absolutely, unequivocally, at the service of ordinary working people ... we will make Britain a country that works for everyone,” she

said.

More than 1,000 British lawyers said in a letter to Cameron that members of parliament, not lawyers, should decide whether Britain leaves the EU because the referendum was not legally binding.

Opposition members of parliament, responding to the impending appointment of Ms. May, demanded a general election. “It is crucial, given the instability caused by the Brexit vote, that the country has a democratically elected prime minister,” Labour party election Coordinator Jon Trickett said.

Labour too has been thrown into upheaval by the referendum, with leader Jeremy Corbyn widely criticised for failing to make a sufficiently passionate case in favour of staying in the EU. Minutes before Leadsom’s announcement, Labour lawmaker Angela Eagle launched a leadership challenge to Corbyn. “Jeremy Corbyn is unable to provide the leadership that this party needs — I believe I can,” Eagle said. Corbyn was elected last year with overwhelming support from grassroots Labour activists.

He has ignored a vote of no confidence from the party’s lawmakers, saying he has a responsibility to carry out that mandate.

Buhari signed a record budget of N6.1 trillion ($21.6 billion) with a deficit of 2.2 trillion, or 2.14 per cent of gross domestic product, in May after a delay of four months.

The fact that the budget was passed late means it’s likely not all the capital spending planned to boost growth will take place, or it will not be as prudent as initially set out, Leon said.

If growth falls to zero per cent “then that’s a huge gap the country has to fill,” Leon said. If expenditure stays as planned, and revenue is less due to the lack of growth “then we should see not smaller but potentially a larger deficit,” he said.

The naira, which was pegged at 197-199 per dollar until June 17, strengthened 0.16 per cent to 282.47 per dollar on the interbank market yesterday.

Meanwhile, Nigeria has moved up one spot on the World Bank’s Doing Business 2016 ranking to 169 out of 189 countries.

Nigeria’s lack of improvement in the global report means that Africa’s largest economy and among the 30 largest in the world is not making sufficient efforts to create the enabling environment and remove the obstacles to doing business in the country, reported Proshare yesterday.

The World Bank rankings were benchmarked to June 2015 and predated the liberalisation of the exchangerate regime last month.

The rankings were based on 10 separate elements.

Nigeria’s highest score was for protecting minority investors (20), and lowest for access to electricity and trade across borders (both 182).

The highest reflects both company law and capital market regulations in Nigeria.

The dire ranking for access to electricity will not surprise anybody. Generation across the country is comparable to that of an European city (and not even a mega-city).

On the volume of trade across borders, the low ranking was based on the time and cost of imports and exports. The data are worse for imports into the country, as documentary and border compliance combined averaged 470 hours for imports and 291 hours for exports.

Among members of the ECOWAS region, Nigeria’s ranking in the report was poor. It was ranked below Côte d’Ivoire at 142, Burkina

unlawful and contrary to the provisions of Section 28 of the NICON Insurance Corporation of Nigeria Act, Cap N54 Laws of the Federation of Nigeria, 2004.

Ayorinde submitted that the applicants were not borrowers or beneficiaries nor were they guarantors to the debt owed the plaintiff (AMCON).

He further argued that AMCON failed to neither comply with the condition precedent by serving a preaction notice on the applicants, nor did the plaintiff seek the leave of the court before joining the applicants to the main suit in their writ of summons purportedly filed on June 27, 2016.

“We submit that a court is only competent when a case comes before it by due process of law and upon fulfillment of any condition precedent to the exercise of jurisdiction.

“Any defect on the

competence of the court is fatal to the proceedings before the court and renders it a nullity.

“We also submit that the only condition under which the court can entertain the application of a person who is not a party to the suit is when the party has first sought for and obtained the leave of the court before bringing the action,” Ayorinde argued.

The applicants had in a 24-pragraph affidavit in support of the motion on notice deposed to by one Gbenga Onilude, a litigation officer in the law firm of B. Ayorinde & Co stated that none of the properties attached in the ex parte order belongs to any of the defendants: NICON Investment Limited, Global Fleet Oil and Gas Limited and Ibrahim.

According to the deponent, the ex parte order was obtained via suppression and misrepresentation of the

material facts by the plaintiff (AMCON) and it was obtained in bad faith against persons who were not parties to the suit.

IMF: NIGERIA’S ECONOMY LIKELY TO CONTRACT THIS YEAR foreign exchange, as well as the higher price of dollars on the parallel market, may have been reduced, they still weigh on the economy, Leon said.

The Washington-based lender cut its 2016 growth forecast for Nigeria to 2.3 per cent in its April Regional Economic Outlook from 3.2 per cent projected in February.

The World Bank lowered its forecast to 0.8 per cent last month, citing weakness from oil-output disruptions and low prices.

Last year’s expansion of 2.7 per cent was the slowest in two decades, according to IMF data.

“Most people would agree that if you should fix one thing in this country, it should be power,” Leon said. “There is a need to start changing the power equation from 2016, from today, not tomorrow or later.”

Nigeria generated an average of 2,464 megawatts of electricity on June 6, according to information from the power ministry. This is less than half of the installed capacity of 5,000 megawatts for a nation whose population of 180 million people is the highest on the continent.

It compares to power generating capacity of more than 40,000 megawatts in South Africa, which has a population a third of the size.

While inflation will probably continue its upward trend through the end of this year, it is unlikely to exceed 20 per cent, Leon said.

Price growth accelerated to 15.6 per cent, the highest rate in more than six years, in May and probably quickened to 16.2 per cent last month, according to the median of seven economists' estimates compiled by Bloomberg.

The central bank’s Monetary Policy Committee (MPC) “may be open to tolerating a little more inflation if growth emerges as the priority, as opposed to choking inflation and squeezing the little life out of growth,” Leon said.

“But the central bank, in conjunction with the MPC, needs to be clear to participants in markets what exactly their priority is.”

The Central Bank of Nigeria (CBN) left its benchmark rate unchanged at 12 per cent in May and will announce its next decision on July 26.

The MPC is likely to increase the rate by 500 basis points in the next year “to address the prevailing inconsistencies between an accommodative monetary policy and a more flexible exchange rate,” Goldman Sachs said in a note on July 8.

President Muhammadu

Continued on page 8

COURT VACATES ORDER TO TAKE OVER JIMOH IBRAHIM’S COMPANIES and NICON Hotels Limited had in a motion on notice filed by their lawyers led by Chief Niyi Akintola (SAN) and Chief Bolaji Ayorinde (SAN) prayed the court to set aside the ex-parte order on the grounds that AMCON deliberately failed to make full disclosure of all the material facts before the court.

At the resumed hearing of the applications to vacate the ex parte order yesterday, AMCON’s lawyer told the court that since the provisions of the Federal High Court rules encourage amicable settlement of disputes, the parties had decided to meet and report back to court within two weeks.

“In the spirit of good faith to show that we are doing this to promote equity and justice, we have agreed that the ex-parte order should be suspended so that parties can explore the issue of settlement.

“We have an agreement that each of the parties will nominate one chartered accountant each that will carry out a forensic audit of the account.

“Since Union Bank is the principal bank that gave out the loan, the accountants will meet at Union Bank’s headquarters and they are to report back within two weeks,” Ali said.

Confirming the agreement, Akintola, Ayorinde and Ibrahim who led a team of lawyers, urged the court to set aside the ex parte order so as to give the parties unfettered access to meet and report back to the court.

Addressing the court, Akintola submitted that the parties had agreed to explore an amicable way of settling the dispute, adding that the applicants had appointed the firm of Adewale Folowosele & Associates to meet with those that would be nominated by

AMCON and Union Bank.

“We have appointed Adewale Folowosele & Associates and await that of AMCON and Union Bank, respectively. Consequently, I apply that the ex parte order of June 14, 2016 should be discharged and parties will return back to court within two weeks,” Akintola said.

Ali told the court that as soon as the names of the accountants nominated by AMCON and the bank are ready, their names would be forwarded to the applicants.

In a short ruling, Justice Anka discharged the order and adjourned the matter till August 1, 2016.

Earlier, Akintola and Ayorinde, in their applications, had told the court that the properties attached by the interim order belong to the applicants who were not parties to the suit filed by AMCON, thereby making it illegal,

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NEWS

Ronaldo Fans in Nigeria Mock Messi to Reconsider Retirement

Ronaldo Christiano Ronaldo’s fans in Abakaliki, Ebonyi State have “mocked’ Lionel Messi to reconsider his retirement in order to attain the current feat of their Portuguese idol.

The fans, who celebrated Ronaldo’s Euro 2016 victory with Portugal over hosts France on Sunday at major bars in the town, said he had overtaken his Argentine counterpart in their unending supremacy battle, reported the News Agency of Nigeria (NAN) yesterday.

The fans also commiserated with Messi who announced

Messi his retirement from international football after the “Copa America” final loss to Chile last June, his fourth major final loss in a row.

Nicodemus Omenka, a former Ebonyi Commissioner for Youths and Sports, said that with the victory, the supremacy debate should “be rested”.

“Both players have dominated world football for over a decade and have won all available club and individual honours.

“The only snag in their

plethora of honours is a trophy win with their national sides and Ronaldo’s win has placed him above his bitter rival,” he said.

Emmanuel Aleke, a former member of the Ebonyi House of Assembly, said Messi could only match Ronaldo’s edge if he reconsiders his decision on retiring from international football.

“The 2016/17 football season will soon commence and both players will continue dominating the headlines in the Spanish La Liga and Europe.

“Messi therefore needs to rejoin the Argentine national team because Ronaldo will always be rated above him even if he wins all available club honours,” he said.

Samson Ozo, team manager of the Columbia FC of Abakaliki, said it was wrong for Messi to have retired prematurely because of the several final losses with Argentina.

“He is just 29 with many football years ahead of him and with possibilities of eventually winning either the Copa America or World Cup.

“Ronaldo had been unlucky before; he lost the Euro 2004 final with Portugal at home against Greece and had several miserable World Cup outings since then,” he said.

Jude Obeineyem, a soccer historian, noted that the use of countries’ performances to determine players overall performances had transcended decades.

“Success in a national team football is used to determine the better player between Pele of Brazil and Diego Maradona of Argentina.

“Pele was given the nod

because he won more World and Copa America Cups than Maradona; Nigerian players should learn from all these to be more patriotic to national cause,” he said.

However, Mrs. Tina Chimnonso, a housewife, lamented the effect of Ronaldo’s fans’ celebration on her household on Sunday night.

“They celebrated at a bar in front of my compound and disturbed the entire neighbourhood all through the night, costing us our sleep in the process,” she said.

from the same university and her Master’s degree from the University of Leeds in 2009.

She worked for a nongovernmental organisation, the Centre for Democratic Development and Research Training (CEDDERT) in Zaria, as a research assistant for a year starting in 1999.

She also worked for the Bureau of Public Enterprises (BPE) when el-Rufai was the director-general of the privatisation agency and

moved with him to work as his Special Assistant on Project Implementation.

In 2011, she worked as Director of Strategy for the Good Governance Group (3G).

In 2015, she was appointed Chief of Staff to the Kaduna State governor.

She shot to national prominence in 2014 when Boko Haram insurgents kidnapped 276 girls from their secondary school in Chibok, Borno State.

Following in her father’s footsteps, Ms. Bala Usman, in conjunction with the former Minister of Education, Mrs. Oby Ezekwesili, co-founded the #BringBackOurGirls (BBOG), which brought global attention to the plight of the kidnapped schoolgirls.

She is married to Dr. Tanimu Yakubu, former Chief Economic Adviser to the late President Umaru Musa Yar’Adua, and they have two sons.

industry event tagged “Nigeria Open for Business”, will highlight business opportunities in the energy, agriculture, transport, solid minerals, ICT and infrastructure sectors to UK investors.

According to the News Agency of Nigeria (NAN), organisers of the event said the main objective would be to create a platform for the Nigerian government to profile business opportunities

to a UK audience, build relationships with international businesses, link into global value chains, and establish links to development finance with the view to developing stronger commercial ties between Nigeria and UK. The Nigeria Open for Business event would feature keynote speeches

by Enelamah and the UK Trade Envoy to Nigeria, John Howell, as well as

presentations from key UK government agencies, namely, the UK Export Finance, Infrastructure and Projects Authority and multipliers.

UKTI is the British government department that helps UK-based companies of all sizes to grow and become more profitable by exporting their products and services.

UKTI also supports all types of overseas businesses and business people to establish a presence in the UK.

BUHARI CONSIDERS HADIZA BALA USMAN AS HEAD OF NPA Amaechi, it was gathered, is not particularly impressed with the way the NPA was being run and has decided to effect a change of the executive team as soon as possible.

A presidency source said that the minute Ms. Bala Usman’s name was submitted to the president, Buhari was happy to consider the recommendation, given the past relationship he had with her father, the late Prof.

Yusufu Bala Usman, who was

a renowned Ahmadu Bello University (ABU) academic, historian and activist before his death some years ago.

Amaechi was also believed to have recommended Ms. Bala Usman, on the grounds that two chief executives of the foremost parastatals under his ministry – Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Railway Corporation (NRC) – are from the south, and he would rather have

an equitable distribution of appointments into the agencies under his ministry.

Ms. Bala Usman, who is currently the chief of staff to the Kaduna State Governor, Nasir el-Rufai, and a member of the All Progressives Congress (APC), was born in Zaria, Kaduna State, on January 2, 1976.

She grew up close to the ABU campus where her father worked and obtained her Bachelor’s degree in 2000

IMF: NIGERIA’S ECONOMY LIKELY TO CONTRACT THIS YEAR Faso (143), Sierra Leone (147) and Senegal (153).

According to the World Bank, respondents for the Nigeria section of the report were mostly accountants and lawyers, with a handful from the same firm in several cases.

The “producing” economy was lightly represented by engineering and construction firms, it said.

But as Nigeria fails to improve in the global ranking for doing business,

the Minister of Trade and Investment, Dr. Okechukwu Enelamah, will be leading a trade delegation from the country on a four-day trade and investment road show in London, scheduled for July 11 to 15, 2016.

The trade and investment road show, organised by the UK Trade & Investment (UKTI), in collaboration with Nigeria Investment Promotion Commission (NIPC) and PricewaterhouseCoopers

(PwC), will be attended by a group of officials from the federal and state governments.

They include the Minister of Transport, Mr. Chibuike Amaechi, and his counterparts in the Agriculture & Rural Development Ministry, Chief Audu Ogbeh; Water Resources Minister, Mr. Suleiman Adamu; and the Minister of State, Aviation, Capt. Hadi Sirika.

The weeklong activity, which will open with an

TUESDAY JULY 12, 2016 • T H I S D AY

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NEWS

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

Sex Scandal: US Envoy to Provide Video Evidence against Lawmakers Thursday House c’ttee to invite foreign minister on scandal

Damilola Oyedele in Abuja with agency report The Speaker of the House of Representatives, Hon. Yakubu Dogara, will next Thursday

meet with outgoing United States Ambassador to Nigeria, Mr. James Entwistle, over the sexual misconduct allegation against three legislators.

Investigative public hearing on

Court Adjourns Saraki, Ekweremadu ‘s Trial to Sept 28 Tobi Soniyi in Abuja The trial of the Senate President, Dr. Bukola Saraki, and his deputy, Ike Ekweremadu, and two others for alleged forgery of Senate Standing Rules has been adjourned to September 28.

Since the court begins its annual vacation today, the trial will now comence in September when the court resumes from vacation.

The accused persons were already in court for their trial when they were told that the court had begun its vacation.

Although the court did not sit, the accused were already in court with their counsel and sympathisers.

Meanwhile, the federal government has appointed a new counsel, Aliyu Umar, to prosecute the criminal charge.

Umar is taking over from the Director of Public Prosecution, Mohammed Diri, who on June 27 led the federal government’s legal team for the arraignment of the four who are standing trial on a two-count charge of forgery and conspiracy before Justice Alilu Yusuf.

Saraki, Ekwerenmadu and the immediate past Clerk of the National Assembly, Alhaji Salisu Abubakar Maikasuwa, and the acting Clerk, Mr. Benedict Efeturi, were charged with forging Senate Standing Rules.

They pleaded not guilty and were granted bail by Justice Yusuf Halilu of an Abuja High Court.

They were arraigned on a two-count charge of forgery and conspiracy to commit forgery. All the accused persons pleaded not guilty to the charges and we’re consequently admitted to bail while trial was adjourned to of July 11.

The four defendants were put on trial by the federal government

on the allegation of forging the Senate Standing Rules used on June 9, last year to conduct the election that brought Saraki and Ekwerenmadu to office as principal officers of the Senate.

Shortly after the charge was read to them, they pleaded not guilty to the charges prompting their lawyers Mr. Ikechukwu Ezechukwu (SAN) for Maikasuwa, Mahmud Magaji (SAN) for Efeturi, Paul Erokoro (SAN) for Saraki and Joseph Daudu (SAN) for Ekwerenmadu, to move the applications for bail for the defendants.

Justice Halilu, after taking arguments from the counsel, admitted all of them to bail with two sureties each who must be Nigerians, male or female and who must have landed properties either in Maitama, Asokoro, Wuse or Apo Legislative Quarters to be able to qualify to stand as sureties in the matter.

The judge in his ruling held that Sections 35 and 36 of the 1999 Constitution as amended presumed the defendants innocent of the charges against them and that it was normal and natural for them to be allowed on bail so as to prepare for their defence.

The judge took judicial notice of the positions of the defendants adding that there was nothing by way of evidence to suggest that they would jump bail if allowed to go home.

Justice Halilu further said that the essence of bail was for the defendants, who were presumed innocent by law, was to ensure their attendance in court throughout the trial and that the Administration of Criminal Justice Act (ACJA) 2015 also lent support for bail for any Nigerian accused of bailable offences as in the instant case.

NCC Remits N70bn to Federation Account The Nigerian Communications Commission (NCC), has said it remitted N70billion into the Federation Account in the last one year.

“This is in addition to the N30 billion paid by MTN Nigeria as a part payment of the N330billion fine slammed on it by the commission.

Yakubu Musa, the Special Assistant on Media to the Executive Vice-Chairman of the commission, Prof. Umar Danbatta, made this known in a statement released in Abuja yesterday.

It also said the NCC won the European Award for Best Practices 2016.

“The ceremony, which held in Brussels, Belgium, was hosted by

the European Society for Quality Research (ESQR), an affiliate of the European Union (EU).

The statement added that no fewer than 63 countries participated in the award out of which the NCC won the European Award for Best Practices 2016.

It said the award, which was in the Gold category, was in recognition of its outstanding commitment, support and results in quality management strategies.

It said Danbatta will address a retreat on revenue generation scheduled to hold from July 13.

Danbatta, a Professor of Telecommunications Engineering, is also expected to share NCC’s experience with the participants.

the scandal begins on Thursday and Entwistle is expected to provide video clips of the incident.

The incident allegedly occurred during the International Visitor Leadership Programme in Cleveland, Ohio, US held between April 7 and 13, attended by 10 members of the lower chamber.

The News Agency of Nigeria (NAN) reported that the Chairman of House Committee on Ethics and Privileges, Hon. Nicholas Ossai (PDP-Delta), said the committee did not invite management of the hotel where the alleged misconduct occurred.

According to him, we decided not to extend invitation to the hotel management since the ambassador who broke the information through a letter to the speaker has documentary evidence against the three lawmakers.

The three lawmakers involved in the allegation are Mohammed Gololo (APC-Bauchi), Samuel Ikon (PDP-Akwa Ibom) and Mark Gbillah (APC-Benue).

They allegedly solicited sex from prostitutes and grabbed hotel housekeeper in a bid to rape her.

Ossai said the committee had also invited Mr. Geoffrey Onyeama, Minister of Foreign Affairs and the Committee for the Defence of Human Rights (CDHR) and National Human Rights Commission (NHRC).

He said the committee did not carry out any secret investigation, and urged anyone with useful information to submit same to the committee on or before commencement of the hearing.

“The standard in the US is that an accused is assumed innocent until proven guilty and that is the same standard in Nigeria. Anyone who has evidence can now see the committee,” Ossai said.

The co-Chairman of the committee, Hon. Nnenna ElenduUkeje, told THISDAY that the committee would also liaise with the Ministry of Foreign Affairs on the investigation.

Ukeje, who chairs the Committee on Foreign Affairs, added that the proper channel of communication to any diplomat serving in Nigeria, is through the ministry.

“The committee recognises that our channel of communication to

the US ambassador is through the Minister of Foreign Affairs.

I can confirm to you that the committee shall at some point invite the Minister of Foreign Affairs and we shall liaise with the Ministry of Foreign Affairs on the way to go forward as we engage diplomatically,” she said.

“There is no such invitation to the US ambassador because we are cognisant of the Geneva Convention and its provisions, and we understand very clearly the channel of communications between the legislature and members of the diplomatic corps,” Ukeje added.

Dogara had last month expressed regrets over the trending report on the allegation against the three lawmakers, especially in the social media.

The Speaker was quoted by his Special Adviser on Media and Public Affairs, Turaki Hassan, as urging Nigerians to refrain from passing judgment and wait for the outcome of investigation by the parliament.

“Judgment can only be passed when an allegation is proven,”

he had said.

Dogara also vowed that the house would investigate the allegation, saying: “Together with the US Embassy in Nigeria, we will get to the bottom of this matter.”

He had pointed out that apart from the US ambassador’s letter, no evidence had been forwarded to his office, and that there could be no conviction without a trial.

The speaker also indicated that the lawmakers had said they were prepared to defend themselves at their own cost.

The House Committee on Ethics and Privileges handling the investigation postponed the public hearing from Monday to Thursday.

The postponement, according to Ossai, is to enable some members of the committee who travelled to perform their religious obligation in Mecca to return to the country.

Meanwhile, the lawmakers would resume plenary today, following Muslim holiday.

The three accused lawmakers are expected to appear before the committee on Thursday and state their side of the story.

HERITAGE BANK PILOTS YOUTH ENTREPRENEURSHIP SCHEME

R-L: Managing Director/CEO of Heritage Bank Limited, Mr. Ifie Sekibo; Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele; Director-General of the National Youth Service Corps (NYSC), Brig-Gen Sule Kazaure; and CBN Deputy Governor, Adebayo Adekola Adelabu, at the commencement of the Youth Innovative Entrepreneurship Development Programme (YIEDP) for select candidates at the NYSC village, Kubwa, Abuja, for which Heritage Bank wasthepilotpartnerbank

Presidency Questions Accuracy of Benue Massacre Reports The presidency has said it is checking the accuracy of the reports claiming that 81 people were killed by herdsmen in Benue State.

The presidency, through its digital communications office, yesterday said some of the pictures in circulation were from the genocide in Congo, back in 2014.

The digital communications arm of the presidency, according to The Cable, said the police are currently investigating the reports and would release a statement shortly.

“Law enforcement agents are working to ascertain the accuracy of reports of fresh killings in Benue State. The @PoliceNG will issue a statement,” presidency said in a Tweet.

Reports had claimed that

gunmen believed to be nomadic Fulani herdsmen had killed scores of villagers in the state in a longrunning conflict over grazing rights.

A national television had put the number of dead at 81 in the past two weeks after attacks on farming villages in the Logo and Ukum areas of the state.

“The magnitude of killings is enormous. Scores of people were killed in the past two weeks by Fulani herdsmen in at least 10 local government areas of the state,” spokesman Tahav Agerzua told AFP. The state government was collaborating with security agencies to contain the violence, which is the latest flare-up between local farmers and the

herders in the state.

The mainly Muslim Fulani herders and largely Christian farmers have clashed for decades over increasingly scarce land and resources, particularly in the religiously mixed central states.

In February, hundreds of people were said to have been killed and about 1,000 homes destroyed in the Agatu area of the state in a wave of attacks blamed on Fulani.

Those attacks appeared to be in revenge for the death of a Fulani leader and the theft of his cattle, which was blamed on the Agatu people.

President Muhammadu Buhari, northern Muslim, has proposed the creation of grazing land to prevent further clashes but Fulani

groups said in Benue State, the government has opposed the plan.

The violence is the latest security headache for Nigeria, which has been battling Boko Haram Islamists in the North-east for the last seven years and a flare-up of militancy in the oil-producing South.

But the state Police Public Relations Officer (PPRO), Moses Yamu, said 22 not 81 people were killed in the attack by the herdsmen.

Yamu added that the attack took last month and not last week as reported.

“It’s not a recent development.

The clashes happened last month and we are on top of the situation,” he said.

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TUESDAY JULY 12, 2016 • T H I S D AY

NEWS

Shell Shuts Down 180,000bpd Trans Niger Pipeline over Leak Ejiofor Alike and Chineme Okafor in Abuja Shell Petroleum Development Company (SPDC) last night confirmed that it had shut down the 180,000 barrels per day capacity Trans Niger Pipeline (TNP), which transports Bonny Light grade of crude oil from the company’s eastern Niger Delta operation to the Bonny Export Terminal in Rivers State.

The Trans Niger Pipeline and the Nembe Creek Trunkline (NCTL) are the two major pipelines that transport Bonny Light stream of crude oil from Shell and third party’s producing fields in the eastern Niger Delta to the export terminal.

The shutdown is coming barely three days after the company lifted force majeure declared on exports of Bonny Light following the repairs of the Nembe Creek Trunk Line.

Shell declared the force majeure on May 10 after the NCTL was closed earlier in the same month by the operator, AITEO Eastern E & P Company Limited.

A Shell Nigeria spokesman, Mr. Precious Okolobo, said the TNP

was shut down following a leak on the section of the pipeline in Ogoni, Rivers State.

“SPDC shut down the Trans Niger Pipeline today (July 11, 2016) following a leak at Gio in Ogoniland. We are working towards a joint investigation visit into the cause of the leak, preparatory to the repair of the line,” Okolobo said.

Okolobo did not disclose the volume of crude oil affected by the closure of the pipeline But according to Shell’s official sources, the pipeline transports around 180,000 barrels of crude oil per day to the Bonny Export Terminal.

The pipeline is also part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI Power Plant) and liquefied gas exports.

Despite the gradual recovery of Nigeria’s oil production to 1.9 million barrels per day, two other Nigerian crude grades – Forcados and Brass River – remain shut-in.

Eni, the Italian parent of Nigerian Agip Oil Company (NAOC) on May 22, 2016 declared force majeure on oil exports from the Brass Oil export terminal off Bayelsa shoreline,

Afenifere: Osinbajo Erred on Restructuring Shola Oyeyipo Vice-President Yemi Osinbajo yesterday came under attack from the pan-Yoruba socio-political group, Afenifere, over his comment on the restructuring of Nigeria.

Osinbajo had said restructuring Nigeria will not make any difference and that if states are given half of the resources of the federal government it would not make any difference.

But Afenifere in a statement yesterday by its National Publicity Secretary, Yinka Odumakin, faulted the position, saying Osinbajo who is from the Afenifere South-west zone that has been vocal on calls for restructuring might have come under pressure to lend his voice to the upholders of the status quo.

“We would like to respectfully admonish him to be sure footed on the subject before he speaks next time. He misses the entire debate by engaging in the reductionist argument narrowing the whole issue to taking more money from the federal government to the states.

“Yes, fiscal federalism is part of the argument, but the issue goes beyond the monthly Federal Allocation Committee. The central plank of restructuring is for Nigeria

to go back to the true practice of federalism wherein mineral resources that abound in all states would be freed from the exclusive list so that states would move into prosperity and not be reporting at Osinbajo’s office for bailout from a centre that only corners what belongs to the states.

“They would also have enough to contribute to sustain the occupiers of Abuja and the functions that are allocated to them,” Afenifere noted.

According to the group, “The question of diversification is a point that advocates of restructuring have canvassed as it makes no sense for a country as vast in resources like Nigeria to depend on a monoproduct economy. It is part of the restructuring we are talking about and not an alternative to it.

“The restructuring package has a whole wide range of issues that have to do with justice administration, electoral system and its cost implications, conflicts arising from clash of cultures and how to deal with them to ensure peaceful co-existence.”

Afenifere insisted: “Nigeria is fast falling apart and all genuine patriots have come to a consensus that we must restructure to arrest the drift.”

Board Approves Retirement of Top Prisons Officers Dele Ogbodo in Abuja The Civil Defence, Fire, Immigration and Prisons Services Board (CDFIPB) has approved the retirement of Mr. Aminu Suley, a Deputy Controller-General (DCG) and an Assistant Controller-General (ACG) of Prisons from the Nigerian Prisons Service (NPS).

The Public Relations Officer (PRO) of NPS, Mr. Francis Enobore, in a statement in Abuja yesterday, said their retirement came less than two months after the appointment of the substantive

Controller General of NPS, Mr. Ja’afaru Ahmed.

The statement said: “Their letter signed by the Secretary of the Board, Alhaji A. A. Ibrahim dated June 28, 2016 indicated that the decision was taken due to the officers’ seniority in service to the new Controller-General of Prisons and in consonance with military and paramilitary convention.

“While wishing them good luck in their future endeavours, the CDFIPB, commended the officers for their contributions to the development of the NPS.”

following militant attacks on the Ogbaimbiri-Tebidaba pipeline.

Shell on February 21,2016declared force majeure on Forcados liftings after the disruption in production caused by a spill on the 48-inch Forcados terminal subsea export pipeline,

which was bombed by the Avengers.

The force majeure effectively shutin 300,000 barrels per day from Shell and third party companies in the Western Niger Delta that rely on the Forcados pipeline for shipment of crude to the Forcados export

terminal.

Despite these production shortages, Nigeria’s crude exports have been on track to rise to 2.2 million barrels per day in August, according to the Minister of State for Petroleum, Dr. Ibe Kachikwu,

even as the Avengers resumed hostilities before the expiration of a 30-day ceasefire.

According to the minister, repairs on the Forcados pipeline would be completed by the end of this month (July).

WORTHY AWARDEES

R - L: Speaker, House of Representatives, Hon. Yakubu Dogara; Governor of Ogun State, Senator Ibikunle Amosun; Ooni of Ife, Oba Adeyeye Enitan Ogunwusi; and Governor of Anambra State, Chief Willie Obiani, during the Zik Leadership Prize Awards 2015, organised by Public Policy Research and AnalysisCentre(PPRAC) inLagos...Sunday

FG Sets up Technical Committee to End Child Marriage NPC puts teenage girls’ population at 13m Paul Obi in Abuja The federal government yesterday said it has set up a technical working committee to work out modalities to end outright cases child marriages in the country, predominantly in the northern of the country.

Ministry of Women Affairs’ officials expressed great concern over the increase in the rise of child marriage in Nigeria, stressing that it was one of the basic factors affecting investment in teenage girls in Nigeria.

To that effect, the government has set up a technical working group to carry out the inauguration of a national campaign to end child marriage in the country. The government however contended that child marriage is not restricted to a particular tribe, ethnic group and religion.

The Minister of Women Affairs and Social Development, Hajiya Aisha Alhassan, represented by the Director of Child Development, Mrs. Georgette Azogu, stated these on yesterday in Abuja, in her presentation during a press conference organised by the National Population Commission (NPC) to commemorate this year’s World Population Day with the theme: ‘Investing in teenage girls.’

Alhassan said: “Distinguished ladies and gentlemen, I would like to use this opportunity to intimate you that child marriages remains one of the major challenges affecting investment in teenage girls in Nigeria. The Federal Ministry of Women affairs and Social Development, along with relevant stakeholders,

is planning to convene the launch of a national campaign to end child marriage in Nigeria.

“The ministry is also carrying out different programmes to ensure girl child education, gender equality and to address any other issues affecting investment in teenage girls...

Stakeholders must focus on and stand up for the human rights of the most marginalised teenage girls, particularly those who are poor, out of school, exploited, or subjected to harmful traditional practices, including child marriage.

“Last year, we launched the Violence Against Persons (Prohibition) Bill and got the President to be part of it. The President expressed commitment to end violence against children, especially girl child. The issue of early marriage is part of violence against children. We are aware of the peculiarities; there is the chain of poverty and population explosion.”

She explained that that although government was aware of the multicultural, religious and traditional diversities in the country, efforts have been intensified to educate the people throughout the country.

“We are aware of the peculiar nature and multicultural diversities in the country. We are also aware of the negative impact of not trying to stop child marriages. In 2014, the African Union launched the campaign and last year, Nigeria was there too. Many countries were selected to lead the campaign against early marriage.

“We have developed a technical working group to

end child marriage. We have a consultant going round to sensitise the people. So, I don’t think that with the way we are sensitising people throughout the country, through the efforts of development partners, there is no way they will not key into it,” Alhassan stated.

Also, NPC Chairman, Chief Eze Duruiheoma (SAN), said data from the 2006 population and housing census indicates that Nigeria’s teenage population aged 13 to 19 was 20,458,601 or 14.6 per cent of the total population, out of which the teenage girls constituted 10,001,965 or 7.2 per cent of the total population.

According to Duruiheoma, by 2016, the population of the teenage girl increased to 13,787,775. He said that the conditions in which majority of the teenage girls live and the challenges they have to surmount on daily basis presents a pathetic picture.

According to him, “without education, good health and with little or no control over her own body, the future of the teenage girl in Nigeria is imperilled, while her potential may never be realised, more so as the challenges and obstacles faced by the teenager multiply if she lives in a village and is from a poor household.”

He observed that “teenage girls in Nigeria like in other parts of the world constitute an important segment of the population whose conditions have great implication for the welfare of the general population and the quest for sustainable development.

The NPC chairman said: “Globally, about 20,000 girls between the ages of 15 and 19

give birth every day in developing countries. An estimated number of 3.2 million unsafe abortions occur among girls every year, while the percentage of girls aged between 15 and 19 who have had sex is 10 per cent. Indeed, the second leading cause of death among girls aged between ages 15 and 19 are complications of pregnancy and child birth, including Versico Virginal Fistula.”

Duruiheoma explained that at the national level, the conditions of the teenage girls were not in any way better, neither are the burdens they carry lighter.

“Data from the Nigeria Demographic and Health Survey (2013) indicates that an estimated 23 per cent of women aged 15 to 18 years have begun childbearing of which 17 per cent have had their children and 6 per cent are pregnant with their first child.

“Also, 32 per cent of teenagers in rural areas have begun child bearing as opposed to 10 per cent in the urban areas of Nigeria.

The report shows disparities within the geo-political zones as follows, North-west (36 per cent), North- east (32 per cent), Northcentral (19 per cent), South-south (12 per cent), South-east (6 per cent) and South-West (8 per cent) respectively”, Duruiheoma emphasised.

According to Duruiheoma, no nation can lay claim to development until its teenagers have equal rights and opportunities to lead a healthy life and free from culturally-induced attitudes and negative practices that limit their capacities to make meaningful contributions to national development.

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NEWS

Oil Workers Likely to Call off Strike after Meeting With Govt Continue dialogue with labour minister, oil companies tomorrow Chineme Okafor in Abuja Senior oil workers union under the umbrella of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) are likely to call off their almost five-dayold nationwide strike following a successful meeting with the federal government yesterday in Abuja, THISDAY has learnt.

The paper gathered that the meeting which was held at the office of the Minister of Petroleum Resources, Dr. Ibe Kachikwu, successfully addressed all except one of the issues raised by the union as reasons for the strike.

Barring any last minute change of direction in the dialogue which has largely gone on smoothly, they may call off their strike after the outstanding issue is addressed by the Minister of Labour and

Employment, Chris Ngige, at a meeting in his office tomorrow.

But even at that, the outcome of yesterday meeting did not push the unions to immediately call off their nationwide strike, instead they opted to run it through their National Executive Council (NEC) tomorrow after the meeting with Ngige and the oil companies.

The meeting, it was learnt, will address the alleged unfair labour practices perpetrated by oil companies against their worker and which the union is protesting.

President of PENGASSAN, Francis Olabode Johnson, however told journalists after the meeting that a final decision on the status of the strike will be reached after the NEC meeting. He said until such happens, the strike was still in force.

Notwithstanding Johnson’s

Presidency Replies BBOG, Seeks Group’s Support to Rescue Chibok Girls Tobi Soniyi inAbuja

The presidency yesterday said no fewer than 15,000 captives, mostly women and children have been rescued from Boko Haram terrorists from February to date.

A statement issued by the Senior Special Assistant to the President on Media and Publicity, Mr. Garba Shehu, appealed to members of the #BringBackOurGirls (BBOG) campaign group not to waiver in their support for the government in the war against terrorism and in the ongoing effort to free all Nigerian citizens taken captive by the Boko Haram terrorist group.

The BringBackOurGirls group had in a recent statement claimed that President Muhammadu Buhari had “broken all promises” made to the group about rescuing the missing Chibok girls and that the government had been “lackadaisical” in the rescue mission.

Shehu said Buhari would never make bogus promises or play to the gallery.

According to him, it is misleading of anyone to preach that the Chibok girls are within an easy grasp.

“If the military under the President knew where they are held, they will bring the Chibok girls home today.”

The presidency further noted that the past year of the administration had seen the Nigerian military step up bombardment of the Sambisa Forest, a stronghold of the Boko Haram terrorist group, leading to the capture of hundreds of insurgents.

The statement said: “Also, records from the Army show the rescue of no fewer than 15,000 captives, mostly women and children from the terrorists from February to date.

In addition, dozens of communities that were previously under the control of the terrorists have been liberated, allowing thousands of previously displaced citizens to return home and resume their normal lives.

“Thousands of these women and children freed from captivity have also been reunited with their families.

“This huge number of rescued women and children may not be prominent names, and their disappearance may not have generated any massive media attention and campaign.

“However, their liberation is just as important as that of every other missing woman and child, and a testament to the devotion of our military personnel who daily risk life and limb in the effort to bring back every Nigerian citizen kidnapped by Boko Haram terrorists.”

The presidency said along with these ongoing efforts to rid the country of terrorists and terrorism, the Nigerian government also focused on the welfare and rehabilitation of rescued Nigerians, many of whom were found in a state of severe malnutrition and illness.

The statement further reads: “While their intentions are honourable, perhaps the BBOG leadership have not considered the collateral damage which must inevitably follow its riveting and dispiriting claim that the President has ‘broken all promises’ allegedly made to the group on this issue. Or that he has been ‘lackadaisical’ in rescuing the Chibok girls.

“The federal government’s focus has always been to free the Chibok girls alive and unharmed.

“The president is conscious always about the fact that terrorism in Nigeria is part of a global phenomenon. Since coming to office, his response to it has been firm and well considered. ”The Presidency is open to renew cooperation with the BBOG group, international bodies, religious groups, social workers, and all others who are assisting in the field to ensure that those who have so far been rescued from Boko Haram captivity are given the support they need to make a full recovery and be reintegrated fully into society.

Groups such as the BBOG can also lend a helping hand to military families whose losses need to be appreciated and focused upon.

position, Ngige in his response to questions from reporters after the meeting said the government expected the unions to take a reasonable position going forward, having addressed their complaints.

He said: “We had a wonderful meeting, a good meeting and we provided PENGASSAN the information on the various issues that needed clarification.

“The issues as you know range from JV cash call, they felt that because the federal government has not paid, it is making the IOCs not to invest more and closing down and laying off workers. The minister of petroleum resources did good justice to that and he will explain to you what he said.

“We looked at the issue of collective bargaining agreement reached on their condition of services for their various agencies and it was also addressed. The remaining portion of that area we will give a timeline for it to be addressed.

“We looked at IPPIS and a

committee is sitting on it now to know which agencies under the purview of the oil industry can benefit from such waiver. The agencies that fall under it will be captured,” said Ngige.

He further stated: “We only have one matter outstanding and that will be addressed tomorrow because the IOCs are not here. A lot of the companies have undertaken by their (PENGASSAN) own allegations, unfair labour practices: laying people off without going through the normal clause in the labour Acts, and even rusticating people who are officers of their union because they undertake labour acts, we felt it is unjust and that meeting will continue tomorrow in my office.”

He said on PENGASSAN’s position on the Petroleum Industry Bill (PIB): “The senior special assistant to the president on national assembly matters, Senator Enang, gave us proper elucidation on where the bill stands today, everybody was

satisfied and we now fashioned out a roadmap on how to get it out so that it will address some major burning issues.

“Tomorrow, we expect PENGASSAN to brief their NEC and after that they will tell Nigeria what they think.

“This meeting is not inclusive and that was our timetable and they know. The IOCs are not here today because we did not invite them and we envisaged that this meeting will be long that is why we asked the IOCs that were involved to come tomorrow for the industrial relations issues,” Ngige added.

On his part, Kachikwu said: “The meetings were collaborative.

They were deliberate and frank and in most of the key areas, I think we had a collaborative landing. All the issues that we planned to handle today, we reached conclusions but one singular item, we said from point one, we will handle tomorrow because they involved third party

but the relationship was cordial in terms of solutions.”

Johnson further said: “We want to commend and appreciate Mr. President for the high power level delegation he has brought in. I also want to thank the ministers. We had a very robust engagement and we know that the NEC members that gave the go-ahead for this strike are on their way to Abuja and after the meeting tomorrow we will look at it.

“We will have our NEC meeting tomorrow and speak on what it will be. So the strike is still on.”

PENGASSAN had last week commenced a nationwidestrikeciting the government’s neglect of agreements reached with it in the past on how to upgrade the dwindling status of operations in Nigeria’s oil and gas industry as its reasons for the strike.

It also said the government has remained indifferent to the passage of the PIB, a bill that hopes to review and reposition operations in Nigeria’s oil industry.

MEETING WITH STAKEHOLDERS

L-R: Managing Director/CEO, Benin Electricity Distribution Company (BEDC), Mrs. Funke Osibodu; Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN); and Acting Director General, Nigerian Electricity Regulatory Commission (NERC), Mr. Anthony Akah, at the seventh stakeholders’ meeting of the power sector in Benin City....yesterday

Nigeria Fails to Present Candidates for Elective Posts at AU Alex Enumah in Abuja For the first time Nigeria may not be fielding any candidates in the various vacant positions in the African Union (AU) when the body meets next week at its 27th Ordinary Session to elect new members that would lead them for the next two years.

Foreign Affairs Minister, Geoffrey Onyeama, made this disclosure yesterday while briefing journalists on the level of preparations for the 2016 AU summit.

The summit which has as its theme: ‘African Year of Human Rights,’ with particular focus on Women’s Rights’ is scheduled for July 16 to 18, 2016 in Kigali, Rwanda.

While noting that the nation has not taken a final decision on whether it would field candidates or not, the minister disclosed that Nigeria had initial plan to sponsor candidate for the peace and security commission currently occupied

by Algeria, which according to him was vying for the position of the chair but had to withdrew

following Algeria’s decision to retain cash position.

Onyeama however stated that if the call for the postponement of the election till next year succeeds, then Nigeria could cash in on the opportunity to field a candidate.

Apart from the election of members into various positions, other issues the summit would look at include the issue of human rights in the country, as well as the full integration of the continent through the establishment of Free Trade Area and the African Union passport.

Onyeama stated that the occasion would permit Nigeria the opportunity to showcase the successes recorded by this current administration in the area of human rights enthronement.

He said as part of measures at enthroning human rights in the country particularly in the North-east, the administration was taking steps to de-militarise the zone, as well as investigating and punishing reported cases of abuse.

Onyeama added that the government had also embedded

the principle of human rights both in the military as well as the judiciary.

While commending some African countries that have introduce punitive measures for culprits of early child marriage, he said Nigeria had increased its funding towards girl child education as well as slots to women in politics, adding that with the education of the girl child and the various empowerment programmes for women, it would address the issue of child marriage in the country.

On the economic front, the minister said with the formal adoption of the AU’s passport which would be issued to Heads of State and Government of the AU at the summit, a major step towards trade liberalisation in Africa had been achieved.

Onyeama who observed that 10 per cent of trade in Africa is intra-Africa i.e trade among African countries, argued that with the AU passport coming into operation, it would be easier for member

countries to do business with each other.

He said while the introduction of the AU passport would allow freer movement of people accross the continent and by extension cause the movement of arms to fuel violence, the conscious efforts of member countries particularly in intelligence gathering and stringent border policing will curtail arms proliferation.

He emphasised that Africa’s integration is a win-win situation for all members, noting that Nigeria stands to benefit a lot from the situation as it provides access to trade and a large market for the nation’s manufacturers.

The summit is also expected to fine tune modalities for pushing its quest for two slots in the United Nations Security Council as well as a critical appraisal of the projects under the New Partnership for African Development (NEPAD).

According to Onyeama, the Nigeria-Algeria gas pipeline is a major project of NEPAD that the summit would be giving attention this year.

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TUESDAY JULY 12, 2016 • T H I S D AY

NEWS

APC Adopts Obaseki as Governorship Candidate Picks Shuaibu as running-mate Onyebuchi Ezigbo inAbuja The National Working Committee of the All Progressives Congress (APC) has finally endorsed the winner of the party’s June 18 governorship primary, Godwin Obaseki, as its candidate for the September 10 governorship election.

But there was a growing apprehension yesterday within the ranks of the leadership of the Peoples Democratic Party (PDP) over the possibility of missing out on the Edo governorship election following unresolved issues around its dual candidacy status.

In a statement issued by the party’s National Secretary, Mai Mala Buni, yesterday, the APC said it had upheld the governorship primaries as valid after due consideration of the appeal committee’s report.

“The appeal committee in its report submitted noted that the Edo

State APC governorship primary was valid and while not dismissing the seriousness of the allegations and claims of the petitioners, the issues raised were not compelling as to warrant the cancellation of the primary election,” he said.

Buni urged all APC stakeholders in the state to put the party’s interest over and above personal interests in ensuring a speedy and amicable reconciliation.

THISDAY also gathered that the APC governorship candidate has chosen a member of the House of Representatives, Hon. Felix Shuaibu, as his running mate for the election.

The Election Appeal Committee chaired by Hon. Opeyemi Bamidele, a former member of the House of Representatives and other members including Mustapha Salisu and Mrs. Ekwy Onyido, had while submitting its report to the APC National Chairman,

Confusion trails PDP’s candidacy

Chief John Odigie Oyegun, assured that it had done everything to the feelings of all the contenders.

The appeal committee said it received petitions from two other aspirants, Kenneth Imansuagbon and Chris Ogiemwonyi to consolidate on his involvement in reaching out to all aggrieved parties.

The committee also recommended that a high-powered committee be set up by the party to reach out and mediate between the Edo State Governor, Adams Oshiomhole and all the aggrieved aspirants who participated in the primary election.

Meanwhile, PDP which is seen as the main opposition in the Edo State governorship contest is under threat of losing the chance of

fielding a candidate in the state governorship election just as the deadline for the submission of names of candidates is said to have been fixed for today, July 12.

The emergence of two rival candidates, Pastor Ize-Iyamu from the Senator Ahmed Makarfi-led Caretaker committee and Mr. Mathew Iduoriyekwemwen, chosen by the Senator Ali Modu Sheriff-led faction, has put the state PDP in a crisis situation.

When asked to comment on the status of the state PDP with regards to the submission of its candidate for the governorship election, the Deputy Director, Voter Education and Publicity, Independent National Electoral Commission (INEC), Nick Dazang, said the commission has so far received names of governorship

candidates for Edo State election from six political parties, excluding the PDP. Dazang, who spoke with THISDAY on telephone, said as at 4p.m. yesterday, only the six parties, including the APC had submitted names to the commission.

However, Dazang expressed the hope that the PDP would be able to resolved its differences and still submit its candidate’s name between yesterday and today (Tuesday).

Similarly, the Chief Press Secretary to the National Chairman of INEC, Rotimi Oyekanmi, said the commission was yet approve any the rival PDP governorship candidates by yesterday.

However, while the mainstream

PDP leadership led by Senator Makarfi had engaged in troubleshooting meeting yesterday to find ways out of the quagmire, the Sheriff-led group said it had filed its candidate’s name at INEC. The former Vice Chairman of the PDP who was recently appointed Deputy National Chairman of the Sheriff’s factional leadership, Dr. Cairo Ojuogboh, yesterday told THISDAY that they had submitted the name of Iduoriyekwemwen to the INEC. Ojuogboh who spoke with THISDAY on telephone, insisted that Sheriff was still the authentic national chairman of the PDP and that it was in that capacity the he obtained the governorship forms, completed it and submitted same to INEC.

Osun Hosts Federal, State Delegates on School Feeding Programme Today Yinka Kolawole in Osogbo The Osun State Government is expected to receive a 39-man delegation from the Office of the Vice-President on a study of the state school feeding programme today. Other delegates are from Borno, Enugu, Kaduna, Kwara, Lagos, Ogun and Oyo States.

This was contained in a statement by the Director/State Operation Officer for Osun Elementary School Feeding and Health Programme (O-Meals), Mrs. Olubunmi Ayoola.

According to the statement, the delegates would be in the state

for three days to understudy Osun School Feeding and Health Programme (O-Meals) for possible replication in their various states.

The statement added that school feeding is a multi-sectoral programme that collaborates with other government ministries and agencies such as Ministries of Education, Health, Agriculture, Commerce, SUBEB, among others.

All affected officers from the collaborating ministries/ agencies are expected to take part in welcoming the delegates to the state and making presentations.

AN AUDIENCE WITH THE PRESIDENT

R-L: Minister of State for Foreign Affairs, Hajiya Kadija Ibrahim Bukar Abba; President Muhammadu Buhari; and former President, African Development Bank (AfDB)/ Special Envoy, African Union Peace Fund, Dr. Donald Kaberuka, during an audience with the president at the State House in Abuja....yesterday State House.

Teachers Stay away as Students Resume in Oyo Fani-Kayode Fulfills Bail Ademola Babalola in Ibadan Public school teachers currently on strike in line with the directive of the Oyo State chapter of the Nigeria Labour Congress (NLC) yesterday defied the state government’s order to resume classroom work.

This was as most of the students in public primary, secondary and tertiary schools in the state resumed for academic work after a month of forced vacation due to the industrial action embarked upon by the civil servants in the state.

In some of the schools visited, both students and teachers refused to resume for academic activities except a few schools where some principal staff were seen in their offices.

When asked to comment on the boycott, the principal officers refused to speak on the development.

However, a teacher who spoke with THISDAY on account of anonymity, explained that none of the teachers would resume until an order was issued by the leadership of the labour union.

“The teachers had a pending issue with the state government which is yet to be resolved. It is

only the union leadership that will issue a directive to the workers to resume work because it is the union that declared the strike in the first place, and not the government,” the teacher said.

The state government last Friday gave an order to the aggrieved workers to resume work, and also directed the schools to re-open yesterday.

The schools were shut last month following the engagements of some students in anti-government protest.

The state Commissioner for Information, Mr. Toye Arulogun, last Friday, in a news briefing in Ibadan, said the decision to reopen the schools was reached after several representatives of various stakeholders met with the government.

The commissioner had noted that the 17 schools that had been identified as participants in last month’s protest would remain shut until the managements of those schools obtained an apology from the students and submited an undertaking that the students would not engage in such demonstrations again.

Conditions

Former Minister of Aviation, Chief Femi Fani-Kayode, has met all the conditions for his bail by the Federal High Court in Lagos.

A statement signed by his media, adviser, Jude Ndukwe, yesterday, said all relevant documents had been duly filed and submitted at the court. “We are now waiting for the Economic and Financial Crimes Commission (EFCC) to verify the documents after which he would be released. Despite the fact that he has been locked up for the last 62 days, he remains confident, strong, healthy and in very high spirits.

“He misses his family very badly, especially his five month old son Aragon, and he looks forward to coming home to be with his family, friends and loved ones,” Ndukwe said.

Fani-Kayode, who was also a Director of Media and Publicity of the Peoples Democratic Party (PDP) Presidential Campaign Committee of former President Goodluck Jonathan, was arraigned alongside former Minister of Finance, Nenandi Usman, one Danjuma Yusuf and a company,

Joint Trust Dimension Nig. Limited for money laundering by the EFCC 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. They were all granted granted bail in the sum of N250 million each.

Delivering his ruling on their bail applications, the trial judge, Justice Sule Hassan, held that there was no evidence that the accused would interfere with trial if granted bail.

Moreso, the judge noted that denying the accused bail, especially when the court preparing to go on an eight-week vacation, would not serve the interest of justice.

He accordingly, admitted the first, second, and third accused on 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.

Adesina Bags FUPRE Students’ Monumental Award Sylvester Idowu in Warri The Special Adviser to President Muhammadu Buhari on Media and Publicity, Mr. Femi Adesina, yesterday bagged a ‘monumental award’ from the students of Four Square Gospel Fellowship of Federal University of Petroleum Resources, (FUPRE) Effurun, Delta State.

The award was given to Adesina during the 2016 Four Square Gospel Fellowship Students Week programme in recognition for his distinguished service to the nation as a professional in the media industry and his positive impact in the lives of young Nigerian leaders.

Adesina, who was represented

by Mr. Emmanuel Ogoigbe, thanked the students for considering him for the award along with prominent Nigerians including the Senator representing Delta Central senatorial district, Senator Ovie Omo-Agege.

He urged the students to take

their studies seriously since that was the only way they could become useful to themselves and the society, adding that they should act as worthy ambassadors of the nation anywhere they find themselves.

The media aide reiterated President Buhari’s resolve to empower young Nigerians through the current empowering programme of the federal government which will employ about 5,000 youths across the country in the next two years.

The special adviser to the president also noted that the decision by the federal government to scrap post Tertiary and University Matriculation Examinations (UTME) was informed by the decision to make admission into tertiary institutions less cumbersome for Nigerian youths.

According to Adesina, the massive investment on agriculture as promised by the president was a laudable one, assuring that most Nigerians will benefit from it.

T H I S D AY TUESDAY JULY 12, 2016

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T H I S D AY • TUESDAY, JULY 12, 2016

COMMENT

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

BETWEEN A FIGHTER AND A MANAGER

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Yushau A. Shuaib urges both ministers of transportation and petroleum resources to work closely for the good of the country

hile crisis management and reputation management are public relations functions, conflict management is another process of limiting the negative aspects of conflicts while increasing the positive aspects.

An interesting feature of President Muhammadu Buhari’s cabinet and in fact his ruling party, All Progressives Congress (APC) is the amalgamation of good fighters and good managers.

The fighting skills as well as managerial expertise of some of the members catapulted the party to victory in the last general elections.

For instance, Rotimi Amaechi aided the emergence of the Buhari government when he successfully initiated a fight, as the Governor of Rivers State, against President Goodluck Jonathan. He tactically joined forces with other members of the Peoples Democratic Party (PDP), including Senator Bukola Saraki of the National Assembly and Governor Rabiu Kwankwaso of Kano State, among others in fighting the government. This helped to bring PDP down to its knee after 16 years as the ruling party.

Rotimi Amaechi, even as the current Transport Minister, has never stopped being a good fighter. He recently took on his counterpart, the Minister of State for Petroleum, Dr. Ibe Kachikwu, on Niger Delta issue. The two ministers are the unique faces of good fighters and managers in the Buhari administration. While Amaechi, as a politician believes in taking decisive actions on critical issues, Kachikwu is an advocate of managing any issue to a logical conclusion rather than through confrontations.

At a recent Town Hall meeting at Uyo in Akwa Ibom State, Amaechi defended the decision of the Muhammadu Buhari administration to scrap the Maritime University project on the ground that the previous administration of Goodluck Jonathan had paid too much to acquire a land for the university.

Describing the project as a “misplacement of priority”, Amaechi said: “My argument about Okerenkoko is that the land alone is N13 billion. If you give me N13 billion, I will buy half of Lagos. That N13 billion has built the university already.”

He added that anti-corruption agencies should be mandated to recover the N13 billion already paid for the land, then he would build the university for the Niger Delta region.

But Kachikwu rose to defend the university project adding that he would source for the money to complete the project. Kachikwu said: “I disagree with the Minister of Transport. Any facility that is located in the South-South we should work closely to develop it. I don’t care the circumstances under which you are placed. It’s not in my position to determine whether land was valued at N3 billion or N10 billion. The appropriate institution, which is at the costing 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.”

The drama must have generated heated debates but the great lesson is that we can fight some of the time to win but we should also devise ways of managing victory. Skilled managers rather than good

SKILLED MANAGERS RATHER THAN GOOD FIGHTERS ARE REQUIRED FOR POLITICAL STABILITY AND ECONOMIC GROWTH

fighters are required for political stability and economic growth.

Amaechi started his political fighting from the University of Port Harcourt when he fought his way to become the President of the National Union of Rivers State Students (NURSS) after fighting for students’ rights. After his graduation, he joined Pamo Clinics and Hospitals Limited owned by Dr. Peter Odili, his political godfather who became Governor of Rivers State and facilitated Amaechi’s election into the Rivers State House of Assembly where he emerged the Speaker in 1999. Their harmonious relationship was truncated when Amaechi launched a campaign against the state government, and fought Odili in an effort to succeed him as Governor in 2007.

When his name was substituted as winner of PDP’s primaries for Rivers Gubernatorial election that year, Amaechi fought his way to the Supreme Court where he was pronounced the rightful candidate of the party and became the Governor on October 26, 2007. He was re-elected for a second term of four years in April 2011 with less fight.

Meanwhile, Dr. Kachikwu has never been a typical Nigerian politician who can fight his way to power and reckoning. He is an outstanding manager who has proved his worth in the media, academics and corporate world. Apart from earning a first class degree in Law from the University of Nigeria, Nsukka and Nigerian Law School with multiple awards, he also obtained a doctorate degree in Law from Harvard University. He had worked with the Nigerian/ American Merchant Bank, Texaco Nigeria Limited from where he joined Exxon-Mobil where he rose to the position of executive Vice- Chairman and General Counsel of Exxon Mobil(Africa).

Apart from his deep involvement in the politics of Niger Delta, Amaechi as Transport Minister has succeeded in the extension of rail lines across Nigeria and the completion of ongoing rail projects initiated by the previous administration, especially the AbujaKaduna route that is likely to be launched in July 2016 by President Buhari.

Meanwhile, Kachikwu as Petroleum Minister and Group Managing Director, Nigerian National Petroleum Corporation was able to cut operational losses, deregulate the downstream sector, initiated a creative means of meeting the Joint Venture (JV) contributions and ensuring prompt payments of revenue to the federation account, among others. Kachikwu’s endorsement of first class engineer and thoroughbred bureaucrat, Dr. Maikanti Baru, as the new Group Managing Director of NNPC, is quite encouraging as the minister now is the chairman of the NNPC Board of Trustees to oversee the complex oil sector and undertake critical consultations with stakeholders towards political and economic stability.

While we urge the fighters and managers in the cabinet of President Buhari to work closely and collectively towards political stability, national security and economic advancement, they should limit the negative aspects of their conflict and increase the positive aspects of the struggle. What Nigerians want now is more focus in managing the economy and security situations rather than in-fighting and internal-agency rivalry. yashuaib@yahoo.com

THE WILL AND THE WAY

Rivers State Government is adopting measures to enhance its internal revenue and serve the people better, writes Simeon Nwakaudu

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ivers State is one of the few states in the country where massive developmental projects are ongoing in different sectors of the state’s economy. Governor Nyesom Wike has refused to take the easier route of giving excuses. He has taken the more difficult road of working for the people.

The celebration of the governor’s first year in office brought to the fore the massive work that has gone into the building of the new Rivers State. It was only in Rivers State that projects were inaugurated in three phases to mark the first year of the administration.

The governor inherited a damaged economy from the immediate past administration with four months unpaid salary arrears and eight months of unpaid pensions. These arrears were cleared before the governor embarked on his unprecedented development of the state.

So far, Rivers State is one of the few states that are up-to-date in payment of salaries. To check fraud in the state’s wage bill structure, Governor Wike introduced the biometric capture of civil and public servants. Therefore, civil and public servants yet to be captured will be paid pending their participation in the exercise.

It is public knowledge that the resources from the monthly Federation Allocation can no longer support the payment of salaries, pensions and execution of projects. In fact,

what accrues to Rivers State on a monthly basis cannot offset the monthly wage bill of the state government. While the state receives between N3 and N4 billion monthly from the federation accounts, her monthly wage bill is in excess of N6 billion.

It will be recalled that the immediate past administration of Rotimi Amaechi regularly received between N15 billion and N17 billion monthly from the Federation Allocation, yet it was neck-deep in debts, not to talk of unpaid salaries and the general decay of basic infrastructure.

In the last 13 months, Governor Wike has stabilised the economy of the state, setting in motion the process of growth. To further make progress, the state needs to grow her internally generated revenue platforms.

This is necessary to sustain the progress already achieved. To do otherwise would be tantamount to dragging the state back to the days of anguish and under-development, non-payment of salaries and general stagnation of the economy.

It was for this reason that Governor Wike initiated and assented to the Rivers State Taxes and Levies Miscellaneous Provisions Law Number 2, 2016 and the Rivers State Hotel Occupancy and Restaurants Consumption Law Number 3 of 2016.

These two laws are targeted at improving the internally generated revenue of the state government so that the government can sustain the development projects and programmes that have improved the living

standard of the people, despite the economic downturn in the country.

Though the opposition kicked against the state government’s entrenchment of a good tax regime to consolidate the development process, majority of stakeholders believe that the laws are relevant.

Wike believes that the culture of taxation needs to be promoted for the state to take its rightful place in the country.

According to him: “So many people do not want to pay tax, but they want the government to continue to deliver. A lot of people drew our attention to ‘this road or that project’, without considering where the money would come from. Everybody wants things free from government. But it will no longer be business as usual. In Lagos, the state makes a lot of money through taxation.

But in Rivers State, nobody wants to pay tax.

Going forward, people will pay tax”.

For now, the state government has empowered the Rivers State Internal Revenue Service to intensify the process of enlightenment for the new regime of taxation.

In the one month, the Rivers State Government has embarked on several key projects across the three senatorial districts of the state. It has built on the successes attained in the first12 months.

Several analysts have wondered how the governor has managed to embark on projects despite the paucity of funds. First, he has managed prudently the resources that have accrued to the state. He has also put to good

use the funds generated through taxes.

Using internally generated revenue, the governor has funded several projects in different government agencies. Today, the state is the best in terms of infrastructure and educational facilities because of funding from alternative sources.

The Rivers State Senior Secondary Schools Board has engaged in the rehabilitation and reconstruction of schools across the state.

Three major schools are getting their facilities upgraded. They include: Birabi Memorial Grammar School, Bori; Nyemoni Grammar School, Abonnema and Government Girls Secondary School, Rumuokwuta.

At the Rivers State Road Maintenance and Rehabilitation Agency, several state and federal roads have been rehabilitated in the last one month. Some of the roads are: Rumuchiorlu road, Kala Road Rumuokwuta, Obaziorlu road, Aba Road at Oyigbo / Oyigbo Afam Internal roads, Amadi Street GRA, Ndoni Street GRA, Port Harcourt Airport road, among several others.

Going forward, there is need to accelerate the development of the state to meet the yearnings of the people. This is why these taxes are necessary.

Governor Wike has proved to be an accountable leader who promotes the interest of the people beyond politics. This will not be different. His actions are targeted at improving the living condition of the people.

Nwakaudu is Special Assistant to the Rivers State Governor on Electronic Media

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T H I S D AY • TUESDAY, JULY 12, 2016

EDITORIAL BEYOND THE KUJE JAILBREAK

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Prison staff need to be properly trained and equipped to withstand the pressure from all sides

he recent jailbreak at the Kuje Maximum Prison in Abuja, in the course of which two notorious suspects escaped, has once again brought into sharp focus the challenge of the Nigerian Prisons Service (NPS). That 14 officers would be suspended over the development is very telling of its gravity. While the Civil Defence, Fire, Immigration and Prisons Services Board (CDFIPB) approved the suspension of four senior officers, the Comptroller-General of Prisons has also suspended 10 junior staff over the incident.

However, beyond the punishment meted to certain officials, no tangible lessons would be learned if the Kuje jailbreak is treated as an isolated incident. It is not. Across the country, the prisons where convicts and suspects are sent for punishment or custody have over the years become sources of internal security threats thanks to fire incidents, jailbreaks and armed terrorist attacks. In recent years, some of the places affected include Maiduguri, Kano, Bauchi, Enugu and Koton Karfe, amongst others.

While jailbreaks are not a new phenomenon in Nigeria, they asPRISONS THAT HAVE sumed a dangerous BEEN NEGLECTED OVER dimension during the THE YEARS ARE NOW height of militancy in OVER CONGESTED AS the Niger Delta when THERE IS LITTLE OR gunmen would break NO INFRASTRUCTURE into some prisons to DEVELOPMENT TO MATCH free their members.

THE INCREASE IN THE But that era paled in NUMBER OF INMATES significance when compared to the orgy of violence, notoriety and impunity with which the actors in the present jailbreaks operate in different parts of the country.

In one particular incident three years ago, gunmen invaded Oko Prisons in Benin City, Edo State and reportedly freed about 12 inmates many of whom are still at large thereby constituting a grave security risk to the country. At about the same period, some armed hoodlums invaded Koton Karfe Prisons, Kogi State, and

Letters to the Editor

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freed 119 inmates who successfully escaped, and only 43 were said to have been re-arrested.

As we have repeatedly argued on this page, the rise in prison attacks could be traced to the increasing wave of crime in our country—from armed robbery to kidnappings and of course the Boko Haram insurgency. Prisons that have been neglected over the years are now over congested as there is little or no infrastructure development to match the increase in the number of inmates.

H 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

owever, the most dangerous development is the complacency or connivance of some prison staff in aiding these criminals to execute their evil acts with military precision.

We assume that some form of collusion happened in the Kuje incident and that may have accounted for the suspension of some officials but we do not believe that was enough deterrence. Anybody found to have colluded with prisoners to escape should face prosecution.

Indeed, without prejudice to whatever may have been the findings of the committee established to investigate the Kuje incident, we believe that jailbreaks are difficult without some form of internal collusion. A former Interior Minister, Mr. Abba Moro, alluded to this ugly trend when he warned after the Koton Karfe’s prison break three years ago that comptrollers of prison would henceforth be held responsible for jailbreaks in their respective commands. Moro observed that officers were not doing enough to safeguard the prisons, and pointed out that the ease with which inmates in Bauchi, Port Harcourt and Koton Karfe were set free by hoodlums posed a serious challenge to the service.

However, the sophistication with which some of these armed groups carry out their attacks also seems to overwhelm the prison guards who might not have been well trained in intelligence gathering and weapon handling. To that extent, we call on the authorities to equip and retrain those who man our prisons. Since most of the jailbreaks are both a reflection of the growing sophistication of criminals and the apparent inefficiency of prison officials, it is time to find a lasting solution to the problem.

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.

BUHARI’S FIVE PER CENT AND THE REPUBLIC

resident Muhammadu Buhari, soon after his victory at the polls, described a segment of his countrymen and women as “the 5%” and stated in no uncertain terms that they should not expect to be treated in the same manner as those who gave him 95% of their votes.

In other words, our “leader” was declaring that his government would be discriminatory - in favour of “the 95%” who voted for him. It is respectfully submitted that that perspective by an elected public official in a pluralistic society like ours is unhelpful and does not advance the deepening of democratic tenets. It is not the language of tolerance and accommodation; it is a language that has no place in a democracy.

Any language that isolates and tags a people is dangerous and history is replete with cases of unwholesome tagging that eventually divided kith and kin and ultimately snowballed into wars and pogroms. The Rwandan genocide is a not so distant example.

It is further submitted that any governance system that enables an elected or appointed public official to wield far-reaching powers so as to be able to punish or discriminate against a people for their electoral choices is a flawed system, and such a system needs to be reformed or dismantled, if civil liberties are to continue to be guaranteed and if democracy is to thrive.

It is my humble opinion that no Nigerian should be unduly favoured or discriminated against, for having a difference of opinion. Democracy thrives on citizens’ participation, and difference of opinions is a derivative and a hallmark of every healthy democracy.

Today, Nigeria seems to be heading towards the opening of another “front” in the defunct “Eastern Region” due to the unabating activities of certain militant elements and secessionist groups within the region, who amongst other things are clamouring for the implementation of the 2014 National Conference Report or in the alternative, a divorce from the Nigerian union.

The thrust of their position as illustrated by their propaganda is that instead of staying in a union, where they will be treated as second class citizens and punished for having a difference of opinion, they might as well “pack their load ie: (their oil and gas resources) and go.”

However, our leader has arisen in the face of this challenge to our “national unity” and the territorial integrity of the state and has threatened to deal decisively with those disruptive elements by giving them “the Boko Haram treatment” for daring to think of leaving the union - with their load. Consequently military personnel and hardware have been deployed to the region to maintain our territorial integrity and “enforce our unity”.

There are those cynical Nigerians who have compared our leader’s “delicate handling” of the activities of murderous herdsmen of alleged Fulani extraction with his “warrior handling” of the Niger Delta crisis. They have compared his ominous silence on the activities of the herdsmen, but vocal on the disruption of crude oil sales by the militants.

The cynics often remind anyone who cares to listen that our leader is yet to issue the “Boko Haram treatment” threat to the herdsmen, who allegedly predominantly hail from his own ethnic

group; they cite primordial loyalty as the motivation for this delay, especially in light of the fact that the herdsmen are rated by the Global Terror Index as the world’s 4th deadliest terror group, and have reportedly killed more Nigerians this year than Boko Haram’s.

The cynics also say that our leader, instead of dealing with the criminal elements amongst the herdsmen, has instead chosen to move his government to “carve out” lands across the federation for the establishment of ranches and or grazing reserves for the herdsmen and their privately-owned cattle. They also allude to the fact that no known compensatory efforts or plans are underway for the non-Fulani farming communities that have been ravaged by herdsmen across the federation.

It is against this backdrop that many cynics, particularly those of “5% origins” have suggested that perhaps our leader is more concerned about their “load” (ie: oil and gas) than he is about the unity of the country. To further buttress their claim they point to the character of our leader’s appointments. They say that the lopsided nature and character of his appointments testifies to his “nationalistic leanings”.

However, in spite of these doubts as to the nationalistic leanings and integrity of our leader, this citizen, being a firm believer in #ProjectNigeria, and a fan of our leader, and by divine providence, a member of “the 5%”, prays that our “leader” will dispel all doubts as to his commitment to national unity, through his words and actions in order to set the tone for national rapprochement.

Ugochukwu Joseph Amasike, Victoria Island, Lagos

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WEEKLY PULL-OUT

12.07.2016

Ayodele Atsenuwa

‘THE MARITIME INDUSTRY INDUST NDUS RY – A NDUST MAJOR REVENUE EARNER’

Former Director International Maritime Organisation, Mrs. Monica Mbanefo

2/DASHBOARD

12.07.2016

An Application for Stay of Execution Precludes a Judgment Creditor from Seeking to Enforce a Judgment by Garnishee Proceedings PAGE 3

EX-AGF Canvasses ADR for Nigeria’s Criminal Justice System PAGE 4

‘A Lawyer Should Create a Niche by Specialising in Specific Areas of the Law’ PAGE 5

Zumax Nigeria Ltd v First City Monument Bank PLC PAGE 6

QUOTABLES 'Offering money to purchase judgment is corruption. But if a judge and a lawyer are friends and the lawyer gives the judge money for a particular purpose, I don’t think that should be interpreted to be bribery. I think we will be going too far if we say that judges and lawyers should not interact, and when we say that when either the judge or the lawyer needs help they cannot help each other. However, such a help must not be one that can be insinuated to mean that you are buying a case from the judge'.

– Chief Felix Fagbohungbe SAN

‘Arbitration in Nigeria: Prospects and Challenges’ PAGE 10

IKPEAZU v OGAH: The Law, Facts and Fiction PAGE 11

COLUMNISTS MICHAEL JONATHAN NUMA The word “Canvass” in legal parlance means to discuss thoroughly, to advance an issue, to examine a question in details.

This column will attempt to critically analyse trending legal issues across several jurisdictions bordering on topics making rounds at the material time, ranging from judicial decisions to policy statements guided political simulations and socio-economic matters to statutory interpretations by commentators within and outside the legal profession, proffering constructive criticism based on different well thought out perspectives.

The writer, Michael obtained his LL.B (Hons) and LL.M (Hons) from Delta State University and Queen Mary University of London respectively.

He is a member of the School of International Arbitration London, Member of the Chartered institute of Arbitration UK, Member of the Chartered Institute of Patent Attorneys U.K. He is the Managing Associate of Messrs Karina Tunyan (San) & Co in F.C.T, Abuja. He is an Intellectual Property and a Private international law practitioner.

Niki Tobi JSC (1940-2016): Tribute to a Great Jurist PAGE 12

Legislative Supremacy, Nigeria’s 1999 Constitution PAGE 13

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

An Application for Stay of Execution Precludes a Judgment Creditor from Seeking to Enforce a Judgment by Garnishee Proceedings

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here there is a pending application for stay of execution, it will be absurd for a party to enforce the same judgment by way of a garnishee proceeding as it would impose a fait accompli on the appellate Court. In the instant appeal the Court of Appeal held that the Trial Court should have abstained from making the garnishee order absolute considering the fact that the Appellant had filed its Notice of Appeal and a motion for stay of execution in respect of the judgment sought to be enforced by the garnishee proceedings.

Facts The 1st Respondent (“Plaintiff at the Trial Court”) sued the Appellant and two others at the High Court of Edo State (the “trial Court”), jointly and severally for damages in the sum of N3,000,000.00. The 1st Respondent claimed that he had suffered a plethora of ailments from drinking a bottle of Maltina malt drink manufactured by the Appellant, which said drink contained a dead cockroach. In the course of trial, the Appellant called witnesses and testified in support of his case.

On 4th July 2001, the trial court entered default judgment in favour of the 1st Respondent and ordered the Appellant to pay the total sum of N2,006,000.00 immediately. Dissatisfied with the trial court’s judgment, the Appellant filed a motion seeking to set aside the judgment. On 13th March 2002, the trial court in it’s Ruling, dismissed the motion. Dissatisfied with the Trial Court’s Ruling, the Appellant filed a Notice of Appeal on 22nd of March 2002 and an application for Stay of Execution of the trial court’s judgment pending the determination of the Appeal.

Nearly 9 years after the trial court’s judgment was delivered in favour of the 1st Respondent, the 1st Respondent instituted garnishee proceedings against the Appellant and the 2nd Respondent (who are bankers to the Appellant) at the Trial Court. The Garnishee order nisi was granted on 12th March 2009. The Appellant and the 2nd Respondent in opposing the garnishee order nisi filed their respective affidavits on 12th March 2009. The Appellant’s affidavit contained depositions that the 1st Respondent suppressed material facts about partial execution of trial court’s judgment and the pendency of the appellant’s application for stay. On 21st May 2009, the Court delivered its ruling, in which it disregarded the Appellant’s depositions on the grounds that the Appellant was not a necessary party to the suit and made the garnishee order absolute. Dissatisfied with the Trial Court’s Ruling the Appellant appealed to the Court of Appeal, Benin Judicial Division by filing a Notice of Appeal and sought an order setting aside the ruling of the trial judge making the garnishee order absolute.

Due to the contentious issues of contemporary interest raised by the distilled issues for determination, the Court decided to seek wider opinion of Senior Counsel who may proffer arguments as amicus curiae on the matter. The Court then directed all Counsel in the matter to submit further briefs and also several Counsels (as amici curiae) to submit briefs on the following issues: (i) whether the application for stay of execution cannot be predicated upon an appeal against an order refusing to set aside a default judgment. (ii) Is the Appellant in this case a necessary party to garnishee proceedings and if so, has it suffered any miscarriage of justice? (iii) Whether in the circumstance of this case, the learned trial Judge was right in holding that the existence of an application for stay of execution does not preclude a judgment creditor from seeking to use garnishee proceedings to enforce the judgment. (iv) Whether the learned trial judge was right in holding that the garnishee proceedings in this case is an independent action from the judgment sought to be enforced and failure to name the other parties to the judgment does not invalidate the proceedings.

On issue One, Appellant argued that the judgment of the Trial Court was a default judgment in which he was denied fair hearing.

He further argued that the Trial Judge was wrong to have held that the Appellant’s Appeal not being against the main judgment itself was not competent such that an application for stay of execution could be predicated on it. He relied on ABURIME v ABUMERE (2002) 10 NWLR (Pt. 776) p.441, 451 and further contended that he has the right to appeal against the order refusing to set aside the default judgment as well as against the main judgment. Thereafter, he submitted that since the result of an appeal against the substantive judgment and an appeal against the ruling refusing to set aside the default judgment if successful, would be that the 1st Respondent would have nothing to base his garnishee proceedings, both appeals are competent.

In response, the 1st Respondent argued that an application for stay of execution cannot be predicated upon an appeal against an order refusing to set aside a default judgment. He submitted that since there can be no grant of a stay of execution in a declaratory judgment, there can therefore be no stay of an order or ruling refusing to set aside a default judgment. He contended that since the order or ruling refusing to set aside did not confer or vest any right on any of the parties there is nothing to be executed and as such there is nothing to be stayed. Thereafter, he submitted that the Appellant’s application for stay of execution of the judgment of the trial Court predicated on an appeal against a ruling refusing to set aside the judgment, is an incompetent application and the court should hold so.

Dr. Onyechi Ikpeazu OON, SAN as well as other Learned Silks argued that an application for stay of execution brought within the context of an appeal against the decision refusing to set aside the judgment, is a direct challenge to the substance of the judgment

H.M Ogunwumiju, JCA

In the Court of Appeal In the Benin Judicial Division Holden at Benin On Wednesday, the 15th Day of July, 2016 Before Their Lordships Helen Moronkeji Ogunwumiju Hamma Akawu Barka Ugochukwu Anthony Ogakwu Justices, Court of Appeal CA/B/289/2009 Between Nigerian Breweries Plc ....................Appellant And 1. Chief Worhi Dumuje 2. Zenith Bank Plc. ................................Respondents (Judgment Delivered by Helen Moronkeji Ogunwumiju, JCA)

itself in the same manner as if the application was brought in an appeal directly challenging the judgment. He thereafter submitted that the effects of both procedures are the same and as such both appeals are competent.

Dr Alex Izinyon SAN and other Learned Silks in opposition argued that the Appellant should have filed an injunction pending appeal not an application for stay in the ruling refusing to set aside the default judgment. As the ruling was a declaratory judgment in which nothing can be stayed.

On Issue Two, the Appellant submitted that the learned Trial Judge was wrong to have relied on P.P.M.C LTD v DELPHI PETROLEUM INC. (2005) 5 NWR (Pt.928) Pg. 458 at 484 in holding that the Judgment Debtor/Appellant was not a necessary party to the garnishee proceedings. He further submitted that there is no known legal authority that supports the view that a Judgment Debtor who has an appeal and an application for stay of execution pending at the Court of Appeal should not be regarded as a necessary party in garnishee proceedings. Thereafter he contended that the Sheriff and Civil Process Act, which provides for garnishee proceedings, did not contemplate the said situation, as it would amount to a travesty of justice to prevent the Appellant from availing the Trial Court with the suppressed facts by the 1st Respondent in the ex-parte application for garnishee order nisi. He submitted that a necessary party as defined in the Supreme Court case of GREEN v GREEN 1989 3 NWLR (Pt.61) 480 at 482 are “those who are not only interested in the subject matter of the proceeding but also in their absence, the proceedings could not be fairly dealt with”.

In response, the 1st Respondent argued that garnishee proceedings are proceedings strictly between the Judgment Creditor (“1st Respondent), and a third party called the Garnishee in whose hands are funds due or accruing to the Judgment Debtor (“Appellant”).

He submitted that in garnishee proceedings only a copy of the order nisi shall be served on the Judgment Debtor and that the Judgment Debtor is not enjoined or required in law to appear before the Court to show cause why he should not pay to the Judgment Creditor. He further argued that only the garnishee is required to show cause why the funds should not be paid to the Judgment Creditor. He thereafter submitted that the reason why there is no requirement of the law for the Judgment Debtor to show cause is because the Judgment Debtor is not a necessary party to garnishee proceedings. He relied on CITIZEN INTERNATIONAL BANK LIMITED v S.C.O.A NIG LTD (2006) AFWLR (Pt. 323) Pg. 1680 at 1692-1695; Senior Counsel argued that although garnishee proceedings are distinct and separate proceedings and the Judgment Debtor is not seen as a party, where the order nisi is not served on the Judgment Debtor it shall be defective. It was further argued that the mandatory service of the order nisi on the Judgment Debtor presupposes that he is a necessary party to subsequent proceedings.

Senior Counsel further submitted that the essence of the service of the order nisi is to enable the Judgment Debtor guide the Court on whether to make the order nisi absolute or not and based on this he is entitled to appeal if an order is made which affects him.

On issue three, the Appellant argued that a garnishee order absolute by the Trial Court after a motion for stay of execution had been filed will foist a fait accompli on the Court. He further argued that an application for stay had been filed at the appellate Court and any order would over reach the decision of the Court and render such decision nugatory.

In response, the Respondents submitted that an application for stay of execution does not preclude a Judgment Creditor from seeking to use garnishee proceedings to enforce the Judgment. He relied on NITEL Plc v. I.C.I.C. (DIRECTORY PUBLISHERS) LTD (2009) 16NWLR (Pt.1167) Pg. 356. He further submitted that since the garnishee proceedings are a special specie of debt execution, no motion for stay of execution can stop the proceedings.

Dr. Muiz Banire submitted that the effort to enable a Judgment Creditor, by way of garnishee proceedings to proceed to enforce a judgment against which there is an application for stay of execution is incorrect, as it will impose a fait accompli on the appellate Court, which the law frowns against. He further submitted that it cannot be right to say that the existence of an application for stay of execution does not preclude a Judgment Creditor from seeking to enforce the judgment by garnishee proceedings.

On issue four, the Appellant submitted that as much as garnishee proceedings are for the enforcement of the judgment of the trial Court, they cannot be successfully prosecuted independent of the parties to the main suit, especially as the parties excluded are Judgment Debtors who are entitled to be served with the order nisi. He relied on the following cases: OMONUWA v OSHODIN (1985) 2NWLR (Pt.10) 924 at 926, para. G; SON & PILL v STENNINGS (1962) 2SCNLR 341; (2006) 46 WRN, Pg.1 at 13 lines 5-15.

In response, the 1st Respondent argued that the judgment he sought to enforce by way of the garnishee proceedings was delivered in Suit No. EHC/236/94 while this appeal emanated from the garnishee proceedings in Suit No. EHC/M/20/2009. He further argued that they are different actions or suits. Thereafter, he submitted that since garnishee proceedings are an independent action between a Judgment Creditor and a third party, other parties to the judgment pronouncing the debt owing, are not needed or relevant to the garnishee proceedings and need not be named in the garnishee proceedings.

Senior Counsel submitted that failure to join other persons who were parties at the Trial Court but who are not concerned with the garnishee proceedings or against whom no claim could be made as regards garnishee orders cannot in any way be fatal to the garnishee proceedings and urged the Court to hold that the Trial Court was wrong in holding that garnishee proceedings are separate actions from the judgment sought to be enforced and failure to name other parties to the judgment invalidates the garnishee proceedings.

The Court’s Rationale and Judgment On issue one, the Court in agreement with Dr. Ikpeazu SAN submissions that to find that absence of an appeal against the substantive judgment vitiates the right to stay execution or garnishee proceedings will be too narrow a view of the law and the Court would rather take an expansive view, that a motion for stay of execution can indeed be predicated upon an appeal against an order refusing to set aside a default judgment.

On issue two, the Court held that the Judgment Debtor being the Appellant who is the owner of the money in possession of the garnishee has a right to be heard if he wishes before the garnishee order is made absolute. The Court thereafter stated that the Trial Court’s view of the justice of the case was completely blocked by the mindset that the Appellant was not a necessary party to the proceedings and the arguments proffered were not properly considered on its merit which is a gross miscarriage of justice in the circumstance of this case.

On issue three, the Court stated that the Appellant had filed its Notice of Appeal and a motion for stay of execution in respect of the judgment to restrain the Trial Court from making the garnishee order absolute. The Court further held that it would be incongruous to attempt to reconcile a situation whereby a judgment could be stayed between the parties to the proceedings, and then the same judgment could still be realized by way of garnishee proceedings commenced by one of the parties, through a process whereby the successful party in the application for stay is denied the benefit of the order made in his favour. Thereafter the Court held that the Trial Judge’s reasoning was wrong and overturned it in favour of the Appellant.

On issue four, the Court held that garnishee proceeding is not an avenue to re-litigate the matter and it is a means of enforcing judgment already given in respect of which the Court that gave it has become functus officio save in the circumstances where it could set aside its own decision. The Court further held that the garnishee proceedings is separate and distinct only to the extent that it is started as a separate process from the judgment it seeks to enforce and that the Judgment Creditor is only obliged to name persons he wishes to move against to recover the Judgment Debt.

The Court allowed the appeal and set aside the ruling of the Trial Judge in suit EHC/M/20/09 and thereafter discharged the Garnishee order nisi and order absolute. No cost was awarded.

APPEARANCES V. O. Nwafor Esq for the Appellants Irikefe Ovwighorienta Esq for Respondents Dr, Alex Izinyon, SAN OFR, Dr. Onyechi Ikpeazu, SAN OON, Mr. P.I.N Ikwueto, SAN, Mr. Ken Mozia, SAN, Mr. Aham Eke Ejelam, SAN, Dr. Muiz Banire, Dr. Olumide Ayeni, Dr. Dapo Olanipekun as amici curiae.

Reported by Afun Adenike Adedolapo, Aluko & Oyebode, Lagos

4/NEWS

12.06.2016

Court to Hear Lagos Journalist’s Assault Suit against Customs on Sept. 29 L-R: Chief Registrar, Lagos State High Court, Mr. Emmanuel Ogundare, Director of Public Prosecution, Lagos State, Mrs. Idowu Alakija, Hon. Justice Kudirat Kekere-Ekun JSC and Director General, Nigerian Institute of Advanced Legal Studies (NIALS) and Guest Lecturer, Professor Deji Adekunle at the maiden Public Lecture of Public Law Department of the University of Lagos recently

EX-AGF Canvasses ADR for Nigeria’s Criminal Justice System Stories by Akinwale Akintunde

A former Attorney General of the Federation and Minister of Justice, Chief Bayo Ojo SAN has called for the enactment of statutory provisions for Alternative Dispute Resolution (ADR) within the criminal justice system in Nigeria.

Ojo stated that rather than dump offenders in jail or impose fines, statutory provisions could be enacted to require some form of ADR for particular offences.

He made this suggestion in his keynote address at the first ever Global Pound Conference (GPC) Lecture series in Africa, organised by the Negotiation and Conflict Management Group (NCMG) International in Lagos.

The theme of the Lecture Series was: “Shaping the Future of Dispute Resolution & Improving Access to Justice”.

Speaking on the topic "Access to Justice and the Future of Dispute Resolution", Ojo further stated that practices such as Victim-Offender Mediation (VOM), Family Group Conferencing (FGC), Restorative Conferencing (RC) and Restorative Circles or System could be given statutory backing.

According to the former minister, the resultant effect of a criminal justice system without

ADR is the over flooding of Prisons with inmates.

Ojo also called for specialisation on the part of judges and dispute resolution personnel, in order to meet the increasing demand for specialised justice.

"For instance, commercial and technology matters could be entrusted to judges who are experts in this area he noted.

Ojo mentioned that ADR should not be seen as a concept that wipes away the court system, adding that an ideal system of justice is one that delivers justice that is customised to each type of case, keeping in mind the subject matter, the parties and the desired outcome.

He maintained that ADR is the appropriate dispute resolution system The senior advocate also stressed the need to pay more attention to online dispute resolution mechanisms in view of the increasing relevance of the internet as means of carrying out everyday activities.

According to him, online dispute resolution is not only cheaper, it allows for several disputes to be settled simultaneously.

Ojo explained that programmes are being developed to enable easy access and individuals, institutions and governments ought not to close their eyes to

this form of dispute resolution.

He mentioned that Wikipedia, alongside its dispute resolution efforts has also been focused on dispute prevention, through technological tools, adding that ebay has developed similar strategy.

"Offline dispute resolution should not be left behind in this.

It has been suggested that this practice should also be applied to physical dispute resolution prevention", he observed.

Earlier in her welcome remarks, former Lagos State Chief Judge, Justice Ayotunde Phillips said the GPC series will facilitate the development of 21st century commercial and civil dispute resolution tools, at domestic, regional and international levels.

Philips, who is the chairman, organising committee of the conference said the GPC series began 40 years ago with the inaugural Conference held in St. Paul, Minnesota, USA in April 1976.

"Championed by Dean Roscoe Pound it has been recognised as the seminal event that led to the birth of modern dispute resolution systems.

"Attended by many leading American educators and jurists it addressed the causes and remedies for popular dissatisfaction with the administration of justice in the US, recognising what

Dean Roscoe Pound had, years earlier, described as “tinkering where comprehensive reform was needed."

"It was a catalyst for the development and proliferation of modern day Alternative Dispute Resolution", she explained.

"As in many areas of the world, judicial systems in Africa are not equipped to handle the multitude of cases brought before them, particularly pertaining to commercial disputes. In fact, sizeable caseloads leave many African courts over-extended and under-budgeted. Some investors are merely inconvenienced by the existence of slow, overburdened judicial systems in Africa."

The event featured interactive voting and discussion sessions using new technologies which is the GPC 2016/2017 application installed in their smart phones, so participants will be able to express their views on a range of critical issues regarding the resolution of disputes.

Panelists include a fellow, Chartered Institute of Arbitration and Mediator, Mrs. Olusola Adegbonmire, head, litigation and dispute resolution, Nigerian Bottling Company, Mrs. Chinwe Odigboegwu, Deputy Director, Lagos Multidoor Courthouse, Mrs. Adeyinka Aroyewun and an accredited mediator and Adeyemi Akisanya.

A Federal High Court in Lagos has fixed September 29 to hear the application to re-list a suit by a journalist, Otunba Olomofe, against the Nigerian Customs Service over alleged assault and human rights infringement.

The Lagos Branch of the Nigeria Union of Journalists (NUJ) had filed the suit on behalf of the Badagry-based journalist, seeking the enforcement of his fundamental rights to life, freedom of expression and the press.

Joined in the suit as respondents are the Comptroller-General of Customs, Muhammed Ndalati, Emmanuel Nkemdirim, and Ibrahim Turaki.

The suit was filed following the severe assault and beating the journalist allegedly received in the hands of customs officers and some hoodlums allegedly hired by them.

The applicant is claiming N500 million as damages against the customs service for assault at Seme Border Post near Badagry on June 25, 2015.

Olomofe is also asking the court to declare that the respondents by beating and causing him internal injuries, infringed on his right to life as guaranteed by Section 33 (1) of the 1999 Constitution.

He also asked the court to declare that the assault he suffered in the course of discharging his professional duties and obligations constituted an infringement on his rights to freedom of expression and the press.

The suit which was filed early January, had been fixed for mention on February 22 and March 17, but was eventually slated for hearing on June 16.

On June 16, after the

case was called, counsel to respondents had informed the court that the applicant was absent, and called for the dismissal of the suit.

Consequently, Justice Abdulazeez Anka struck out the suit.

Counsel to the applicant, Mr. Giti Ogunye, had refiled the suit on June 17 and served the court processes including his application to re-list the suit on the respondents.

The court then fixed July 4 for mention of the case.

Applicant's counsel (Ogunye) informed the court on Monday that he had duly served the court's processes on all respondents, adding that he was ready to proceed with his application.

Counsel to the first, second, third, fourth and fifth respondents, Mr. G.U. Badejogbin and counsel to the sixth, seven and eight respondents, Mr. I.C. Ifediora, confirmed service of the court processes.

While Badejogbin stated that he was prepared to go on with the hearing in spite of being served with the processes late, Ifediora insisted that the suit was not ripe for hearing.

According to Ifediora, the applicant's suit was filed on June 17, a day after it was struck out, and the applicant had to wait till June 29 before effecting service of the processes on him.

He, therefore, submitted that the case was not yet ripe for hearing adding that he would ask for cost.

However, Justice Anka refused to make any order as to cost and adjourned the case to September 29 for hearing of the applicant's motion to re-list the suit.

Firm Drags NAF to Court over Seizure of Its Property The Nigerian Air Force (NAF) has been brought before a Federal High Court sitting in Lagos for its continued occupation of a property situated at No. 13B Reeves Road in Ikoyi-Lagos, belonging to BCL Limited.

In the suit with No: HC/LC/ CS/1769/14, filed by Abubakar Sheidu and Co on behalf of BCL before Justice Mohammed Idris, the firm alleged that NAF forcefully ejected its employees and stopped its agents from re-development of the property which it had already commenced.

According to the firm, armed personnel of the Nigerian Air Force have continued to occupy the said property in total violation of the rights of the lawful owner.

BCL stated that it obtained the property in 2008 without encumbrances based on a

memorandum of understanding and developmental lease signed between the company and the Ministry of Housing and Urban Development, acting on behalf of the Federal Government.

“The company made a total payment of N176,925,000 (One Hundred and Seventy Six Million Nine Hundred and Twenty Five Thousand Naira Only) in full settlement for the leasehold.

“Despite several written proofs from the Presidential Implementation Committee of the White Paper on the Commission of Inquiry into the Alienation of Federal Government Landed Property which handled the lease of the property on behalf of the federal government to support BCL’s claim, the NAF forcefully ejected BCL and stopped its agents from re-development

of the property which it had already commenced”, the company alleged.

Pursuant to its rights, counsel to BCL, Abubakar Sheidu and Co. instituted the suit against the Nigerian Air Force, the Chief of Air Staff, NAF Investment Limited, Commander 107 NAF Camp, Victoria Island Lagos, Federal Minister of Lands, Housing and Urban Development and the Secretary, Presidential Implementation Committee on Federal Government Landed Property.

The NAF has continued to occupy the property refusing its lawful owner access in outright disregard of a letter

by Secretary of the Presidential Implementation Committee part of which reads that, “the Federal Government property known as

13B Reeve Road was never at any time offered to the Nigerian Air Force…the property was never an institutional property for the Nigerian Air Force.”

Through its officers, Flying Officer Oluwaseun Afolabi and B. R. Ashiru, the NAF called upon the court to dismiss the case in its entirety, its statement of defence merely denies BCL’s claims without showing any evidence in support. The NAF has not tendered any document to show that the property ever directly or remotely belonged to it, at any time.

Chijioke Dike counsel to the Minister of Lands, Housing and Urban Development and the Secretary, Presidential Implementation Committee on Federal Government Landed Property stated that the said property was formally

in the occupation of the NAF by its personnel and same was not at any time classified as an institutional property.

According to him, the property was initially slated for redevelopment under the Public Private Partnership of the Federal Ministry of Housing and Urban Development, but due to frustration and failure of redevelopment, the Federal Government cancelled the programme and the Secretary, Presidential Implementation Committee on Federal Government Landed Property was authorised to sell the property and since the property was not an institutional property it was never at any time offered to the NAF. He further stated that the property was not among those exempted from lease in the guidelines for the disposal or sale of Federal Government

properties.

On behalf of BCL, Abubakar Sheidu and Co has sought several declarations and orders against the defendants jointly or severally, chief among which is an order of perpetual injunction restraining the defendants collectively or severally by themselves or their agents from meddling with or purporting to sell, alienate or transfer the plaintiff’s title, rights or interest in No. 13B Reeve Road, Ikoyi-Lagos whether to themselves (jointly or severally) or any other person or persons.

They also asked for N500,000,000 (Five Hundred Million Naira) as special damages jointly or severally and another N500,000,000 (Five Hundred Million Naira) jointly

CONTINUED ON PAGE 10

12.07.2016

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Brexit: Some Practical Considerations for Investment Arbitration, International Trade and Cross-border Contracts ow quickly the unthinkable became the irreversible”.

With the implications of the recent Brexit referendum ricocheting through the continent and further afield, those with interest in international trade will be paying close attention to the consequences that the situation may trigger, with regards to their cross-border business. Whilst little has been said as to the specificities of the proposed withdrawal, there are a number of areas where legal consultation is advised for those conducting business affairs in the UK, Europe, as well as other countries outside of the EU.

which may give rise to unforeseen disputes.

Internal Company Restructuring The moment the Brexit decision was announced, strategic plans for companies with transnational business may require redrafting and reconsideration. With the short, mid and long term future of the UK very much up in the air, many international investors will be hesitant to pursue potential or existing investment opportunities in the UK. It is natural their search for stable and profitable returns may take them outside of the political landmine that the UK is now subject to. International business interests and investors will no doubt look at ways they can structure or restructure investments within their desired jurisdiction, in order to gain maximum benefits and protection for their investment. It is expected that those within the EU will be able to move their investment with ease, as we await the proposed 2 year negotiation period to be triggered by the evocation of article 50 of the Treaty on the European Union.

Can existing agreements to arbitrate hold?

Economic volatility, possible isolation from continental Europe and political instability could all contribute to an increase in commercial disputes following the Brexit result. Never has there been a time where staged ADR or arbitration agreements included in international contracts have been more valuable, this is more so as any eventual arbitral award would not be affected by the UK’s membership of the European Union. This is due to compulsory recognition and enforcement mechanism in all 156 signatory states. That having been said even with the agreement to submit future disputes to arbitration, there are however unfolding political, economic and legal developments that need to be considered and closely monitored

Investment Treaty Shopping?

For those who are contemplating corporate restructuring or simply moving assets from outside the EU, they must employ much greater caution. Investors from over 100 countries that currently enjoy protection courtesy of the bilateral investment treaties (BIT) between the UK and other countries outside the EU will need to identify and scrutinise the specific terms of the BIT that covers the relationship between their home state and their host state.

Philip Morris Asia Limited v The Commonwealth of Australia (PCA Case Nº 2012-12) represents a landmark international arbitral decision which penalised an international conglomerate for ‘treaty shopping’ in order to maximise investment opportunities. Whilst merely restructuring an investment seemingly

Momoh Kadiri and Rosie Gibson

“H

does not amount to an abuse of power, when such a manipulation of the system is severe – there are grounds for action. The recent decision and conclusion of the arbitral tribunal represents a pivotal development in investor-state arbitration. A blind reliance on international bilateral agreements as a safety net is no longer a safe bet when it comes to maximising international investment protections. This case highlights the importance of seeking appropriate legal guidance prior to making such decisions so as not to lose the protection of the specific treaty under consideration.

Following the economic uncertainty that Brexit has sparked, it is essential to seek timely legal advice on the possible impact investment treaties will have on cross-border business dealings, to take full benefit of the level of protection they offer. Therefore, some proactive engagement and proper advice in this sophisticated area of the law is desirable in order to obtain protection similar to that hitherto available in the UK, and that restructuring of existing or new investment arrangements are subject to equal or superior protection previously available.

Variation, Frustration and Renegotiation of Contracts As the pound sterling plummets and the UK stock market swings, there will no doubt be a number of international companies who are reconsidering their ties to the UK. Not only will Brexit result in potentially economic uncertainties, the volatility of the current situation is not one to entice those wishing to initiate commercial activity. This might result in variation, frustration and renegotiation of existing contracts.

It is suspected that the situation may hit those who are already engaged in trade with the UK the hardest. It is not inconceivable that many will have signed existing contracts taking into account the UK being an economic hub at the

centre of the EU. Following the victory of the ‘Leave’ campaign, the position of such parties may have been modified greatly. The reaction to this may indeed be an increase in cross-border commercial disputes that will arise off the back of imminent uncertainties, following such a major political and now economic upheaval.

Existing contracts may necessitate review or realignment in order to ensure that Brexit has not fundamentally changed the nature of the commercial bargain of parties. If Brexit is seen to have led to frustration of contracts, renegotiation may be on the cards. Renegotiation, variation and strategic planning when it comes to transnational commercial contracts are all areas which require close attention as disputes are prone to arise. As a result it stands recommended that prudence and timely advice is important to avoiding the pitfalls that now seem inevitable in cross-border commercial contracts that affect the UK. Seeing firsthand the uncertainty in EU/UK domestic legal framework following the UK’s imminent breakaway from Europe, it is highly advisable to include staged ADR and suitable arbitration clauses within future contracts. For the next two years at least, it seems plausible to assert that the laws governing cross-border commercial contracts in the UK will be a hybrid of UK, European and international laws before there is an amalgamation of laws resulting in one coherent system. In the meantime international traders could be left in the lurch, if they have chosen to rely on a shape shifting legal body for legal protection. As has been previously mentioned, arbitration de-risks some of these problems as arbitral awards enjoy recognition and enforcement pursuant to the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards.

Momoh Kadiri and Rosie Gibson are with Mitchell Simmonds Solicitors.

Legal Personality of the Week Oluwatosin Popoola

‘A Lawyer Should Create a Niche by Specialising in Specific Areas of the Law’ influence on me. I read a lot about him while growing up; particularly about his legal career, human rights activism and his struggle against military rule in Nigeria. I admired his doggedness and absolute commitment to legal practice, human rights and the masses. He was such an inspiring man who simply through his deeds made me understand the concept of human rights in my childhood. As a result of the exploits of Chief Gani Fawehinmi I developed a strong passion for human rights; it is a real privilege to have been influenced by him. I am glad I had the opportunity of meeting him before he died, may his soul rest in peace.

I am Oluwatosin Popoola, an indigene of Abeokuta Ogun state. I am a Barrister and Solicitor of the Supreme Court of Nigeria, and a Solicitor of the Senior Courts of England and Wales.

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

As the legal maxim goes justice delayed is justice denied, delays in the justice system continue to be a major problem in Nigeria. I have found the delays in concluding cases in Nigerian courts very challenging. It is frustrating starting a case and not knowing when it will end. Delays in litigation does not give clients confidence to fight for their rights. It also does not help lawyers in Nigeria as they often get bogged down with so many cases with no conclusive result. Although lengthy litigation will keep a lawyer on the payroll of clients for a long time it does not give one a sense of accomplishment which is vital to a successful career.

What was your worst day as a lawyer?

I have had challenges in my career but cannot regard a particular day as my worst. There are days when things do not go your way as a lawyer, like losing a case or one’s client not succeeding in his or her objectives. Life is not a bed of roses, whenever I have a bad day I analyse the situation, pick myself up and just forge ahead.

What was your most memorable experience?

My most memorable experience was winning my first case in court. I had just been called to the Nigerian Bar and also had just started my National Youth Service in a human rights organisation in Lagos. A human rights activist in the organisation had gone to the police station to seek the bail of a person detained. At the police station the man introduced himself as a

Oluwatosin Popoola

“human rights activist”, this got the police officers angry. The Police beat him up, detained him and charged him with “impersonating a human rights activist”, which was a ridiculous trumped-up charge. I was asked by the General Secretary of the human rights organisation to represent the man at his trial. The day of the trial was my first ever appearance in court as a lawyer. Criminal Procedure was my favourite course at the Nigerian Law School, so I was quite excited about going to represent the man in court and thought deeply about how to put the theory I had learnt in law school into practice. The trial started and ended on the same day with the court discharging and acquitting the accused. I was quite pleased with myself and happy I won my first case.

Who has been most influential in your life?

The late Chief Gani Fawehinmi was a great

Why did you become a lawyer?

The legal profession was the first profession I was exposed to as a child. My father was a lawyer and later became a High Court judge, my maternal grandfather was also a lawyer who later became a Magistrate. The pictures of the two of them, in their wigs and gowns, adorned the walls of their homes and offices and featured prominently in family photo albums. As a child I regularly visited my father’s law firm where I saw him work.

Also, because I love reading, I was fascinated by the fact that my father had many books on his shelves at home and in the office and he studied a lot. These were my first inspirations to becoming a lawyer, it was as if I could not be anything else other than a lawyer. Beyond my childhood inspirations, I detest injustice and love advocating for a cause I believe in and seeking redress when things go wrong.

Becoming a lawyer was the perfect way of fulfilling my dreams.

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

You need to have a passion for the law; this is crucial to having a successful career as

a lawyer. Before becoming a lawyer volunteer at a law firm at your spare time and visit the courts regularly to watch trial proceedings. Study well and aim at achieving at least a Second Class (Upper Division) grade at the University and at the Nigerian Law School; this will help with beating the competition for a good job after qualification. Be determined and focused even in the face of challenges. Decide well ahead of time how you intend to practice law, that is, whether to go into private practice; work for a company; work for the government or a non-governmental organisation. Do not be a Jack-of-all-trade like many lawyers are in Nigeria, create a niche for yourself by specialising in specific areas of the law.

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

If I had not become a lawyer, I would have definitely gone to the University to acquire a degree and then become a serial entrepreneur.

Entrepreneurship is my second interest after the law. I love business and the concept of setting up multiple businesses particularly when it involves seeking and finding out new opportunities.

Despite being a lawyer I continue to pursue my entrepreneurial interests.

Where do you see yourself in ten years?

I see myself as the Governor of Ogun State; driving the political, economic, social and cultural positive change I desire for my people and country. I desire real and positive change for Nigeria and the Negro race and I am tired of the myriad of problems we constantly face.

The poverty, the suffering of the people, high unemployment, lack of electricity, lack of social welfare and the underdevelopment in our society is embarrassing and pathetic. No amount of litigation, advocacy and social commentary can change our society until the right and committed people are in power.

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12.07.2016

Zumax Nigeria Ltd v First City Monument Bank PLC Stephen Kola-Balogun

A Introduction

case which may be of considerable interest to the legal profession here in Nigeria is the recent judgement of the English Court of Appeal in ZUMAX NIGERIA LTD v FIRST CITY MONUMENT BANK PLC delivered on 23rd June 2016. The appeal not only clarifies certain significant procedural points taken in the High Court below but also contains a few helpful guidelines on the approach to be taken by our Courts when a case bears certain elements of fraud. The wider aspects as to what really constitutes fraud in Nigerian jurisprudence has become a perennial subject of debate and controversy in recent years and the decision of Mr. Charles Hollander QC (sitting as a Deputy Judge of the High Court in England) was by no means exempt from these disputations and his judgement seems to have even stretched this issue further on appeal. Needless to say First City Monument Bank Plc (FCMB) were dissatisfied with the judgement of Mr. Hollander QC and appealed to the Court of Appeal in England, questioning the dismissal of certain applications they made in the High Court on 6th December 2013, 11th December 2013 and 7th May 2014. The Court of Appeal’s eventual decision provides another useful reminder on how our Courts ought to tackle any perception of fraud. In the view of Lord Justice Kitchin at paragraph 69 of the Court of Appeal judgment, “any foreign judgment is, if obtained by fraud, open to attack………”, and this appears to have been the case in the suit as FCMB’s appeal was dismissed for fraudulent misrepresentation.

The Issues in Zumax The Claimant/Respondent, Zumax Nigeria Limited (Zumax) (represented by Barrister Francis Collaco Moraes and instructed by the London based firm of Solicitors, Mordi & Co) is a company incorporated in Nigeria, and engaged in the business of providing engineering services in Nigeria, primarily to companies in the Shell and Chevron groups of companies. Zumax would invoice these clients for some of its fees in US dollars and the remainder in Naira. A nominee of Zumax, Redsear Limited (Redsear), a company incorporated in the Isle of Man, received the US dollar payments in a US dollar account at the London branch of Chase Manhattan International Limited (Chase), which subsequently became JP Morgan Bank. Zumax used these funds to purchase equipment and for other purposes connected with its business, and any surplus funds were remitted to Nigeria for use by it in its Nigerian operations.

The Defendant/Appellant FCMB (represented

by Fidelis Oditah QC, SAN and instructed by the London based firm of Solicitors, Alan Taylor & Co.) on the other hand is a registered Nigerian bank and, as the Deputy Judge in the High Court pointed out, is the product of a number of Nigerian bank mergers. By these mergers it assumed the liabilities and obligations of, among other banks, IMB International Bank Plc (IMB) and Finbank Plc (Finbank). IMB was Zumax’s main banker. IMB Morgan Plc (IMB Morgan) was a subsidiary of IMB. One of the directors of IMB was a certain Mr. Edwin Chinye. He was also a director of Zumax. At all material times to these proceedings IMB maintained in its own name a US dollar correspondent bank account at the London branch of Commerzbank AG (Commerzbank), as did IMB Morgan.

Zumax asserts in this case that between May 2000 and April 2002 monies amounting to US$3,547,000 held in Redsear’s US dollar account at Chase in London were transferred upon the instruction of Mr. Chinye to the IMB and IMB Morgan Commerzbank correspondent accounts for the sole purpose of remitting them to Zumax.

It also contends that IMB and IMB Morgan held these monies (the Redsear proceeds) on trust for Zumax. Zumax maintains that it never received the Redsear proceeds and that IMB and IMB Morgan, acting by Mr. Chinye, fraudulently and in breach of trust wrongfully retained them. The claims in this suit against FCMB are made because they are the successors in title of IMB. Zumax

recognises that FCMB did not succeed to the liabilities of IMB Morgan but asserts that IMB Morgan was for this purpose the agent or nominee of IMB. The proceedings and the applications in the High Court On 10th April 2013 solicitors for Zumax wrote a letter of claim to FCMB detailing the matters above and demanding payment of the Redsear proceeds together with interest. About two months later, solicitors in Nigeria for FCMB replied denying that the Redsear proceeds had ever been received by IMB and IMB Morgan and further asserted that Zumax had admitted as much in the proceedings it had pursued in our Courts here in Nigeria against Mr. Chinye and Finbank in suit number FHC/L/ CS/784/2009. Zumax considered that FCMB had failed to put forward a credible defence to its claim and accordingly, it issued an application for permission to serve these English proceedings on FCMB in Nigeria.

FCMB were eventually served in Nigeria and they duly acknowledged service. On 7th November 2013, FCMB sought from Zumax and was given a 28 day extension of time by the High Court in England to prepare an application challenging its jurisdiction. That extension expired on 5th December 2013. Meanwhile, on 4th December 2013, FCMB’s solicitors sought a further extension until 31st January 2014.

They explained that they were reviewing seven different sets of proceedings in our Courts here in Nigeria and that they needed more time in order to properly prepare their challenge. On 6th December 2013 Zumax refused the extension sought. It however extended time for FCMB to file a defence for 28 days from 13 November 2013. This extension expired on 11th December 2013. In the meantime, FCMB’s solicitors had prepared an application to the Court for an extension of time. It was purportedly dated 5th December 2013 but sent to the Court by fax late on Friday, 6th December 2013.

On 11th December 2013 FCMB made a substantive application to challenge the jurisdiction of the Court. In broad terms FCMB sought to have the order permitting service out of jurisdiction set aside on the basis that Zumax had failed to make out a sufficiently arguable case on the merits, not least because the claims which are the subject of proceedings in the High Court in England had been compromised in the course of other proceedings in Nigeria; that the case did not fall within one or more of the classes of case for which permission to serve out of jurisdiction could properly be given; that the appropriate forum for the hearing of the dispute was Nigeria; and that the order should be set aside for material non-disclosure.

On 16th December 2013 Zumax’s solicitors wrote to FCMB’s solicitors seeking disclosure and inspection of the records of the US dollar correspondent accounts held by IMB and IMB Morgan with Commerzbank in light of FCMB’s denial that the Redsear proceeds had ever been transferred to those accounts. That request was refused and so, on 20th December 2013, Zumax made an application for the disclosure of those records under the Bankers’ Books Evidence Act 1879 of England. On 4th February 2014 a Master of the High Court revealed that, contrary to FCMB’s assertions, the Redsear proceeds had indeed been transferred into those accounts.

On 7th May 2014 in light of the position taken

by Zumax to its failure to make its application challenging jurisdiction in time, FCMB made an application for relief from sanctions under the English Civil Procedure Rules.

High Court Ruling FCMB’s application of 5th December 2013, 11th December 2013 and 7th May 2014 all came up for hearing before the Deputy Judge on 8th May 2014. The Deputy Judge was faced at the hearing with a host of arguments by FCMB as to why its applications should be allowed. It claimed Zumax had failed to make out a sufficiently arguable case on the merits for a variety of reasons; that the case did not fall within one or more of the classes of case for which permission to serve out of jurisdiction could properly be given; that the appropriate forum for the

The Rt Hon Lord Justice Kitchin

hearing of the dispute was Nigeria; and that the order should be set aside for material nondisclosure. Zumax responded that no application to challenge the jurisdiction had been made in time and therefore FCMB was deemed to have submitted to the jurisdiction of the English court.

The Deputy Judge dismissed each of FCMB’s applications and held, in summary, that the delay

by FCMB in making its applications of 5th and 11th December 2013 was not trivial and that no good reason for the delay had been shown; that FCMB’s application under the Bankers’ Books Evidence Act constituted an unequivocal and irrevocable submission to the jurisdiction of the English Court; that none of the actions between the parties in the Nigerian Courts concerned the Redsear proceeds or constituted a bar to the claim; that Zumax had shown a good arguable case; that its claim fell within each of the three classes of cases upon which it relied and for which permission to serve out of jurisdiction could properly be given; that there had been no material non-disclosure; and that this was the forum in which the claim could most suitably be tried.

The Appeal Upon appeal FCMB contended that the Deputy Judge: i) erred in principle in the way he approached the applications for an extension of time for relief from sanctions, and that had he approached them correctly he would or ought to have granted the extension and relief sought; ii) was wrong to hold that FCMB’s application under the Bankers’ Books Evidence Act constituted an unequivocal and irrevocable submission to the jurisdiction of this court; iii) erred in that he failed to take proper account of (a) the parallel proceedings in Nigeria between the parties in which the same or substantially the same issues arise; (b) the terms of a consent order in proceedings in the Nigerian courts brought under claim number LD/115/2005 and (c) the effect of a charge of the Redsear proceeds to IMB, including the sums the subject of this claim, under the terms of a debenture made in 1998 and iv) was wrong to hold that Zumax had shown a good arguable case that its claim fell within each of the three classes of cases upon which it relied and for which permission to serve out of jurisdiction could properly be given.

Ground 1 – extension of time The Appeal Court was of the view that an application for an extension of time for noncompliance with the rules should be decided in accordance with the same principles as an application for relief from sanctions, and that is so even if the rule in issue does not itself prescribe CONTINUED ON PAGE 7

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ZUMAX NIGERIA LTD V. FIRST CITY MONUMENT BANK PLC CONTINUED FROM PAGE 6 a sanction for its default.

According to established English case law there are three stages of enquiry: (1) identifying and assessing the seriousness and significance of the default (2) identifying the cause of the default; and (3) evaluating all the circumstances of the case, so as to enable the court to deal with the application justly.

Counsel for FCMB, who was no other than our very own Fidelis Oditah QC SAN, submitted that the Deputy Judge fell into material error in the following three respects.

First, he was wrong to say that the application of 6th December 2013 was made without evidence for it was supported by the evidence in paragraph 10 of the application notice. Secondly, he was equally wrong to say that the application of 11th December 2013 was made without evidence for it was supported by the evidence in paragraph 10 of the application notice and by a seven page letter which explained in more detail the basis of FCMB’s challenge to the jurisdiction. Thirdly, in refusing to extend time, the Deputy Judge focused on what he considered to be the non-trivial nature of the failure and upon the absence of any good reason for it, he should instead have considered whether the breach was serious or significant. Furthermore and importantly, he did not consider whether, assuming there had been a serious or significant breach for which no good reason had been provided, relief should nevertheless be granted having regard to all the circumstance. In other words, established principles and guidelines were not followed.

According to the Court of Appeal, each of these criticisms was valid.

Contrary to the findings of the Deputy Judge, the application of 5th and 11th December 2013 were supported by evidence. The Deputy Judge was entitled to consider the adequacy of the evidence but he was wrong to say that each of the applications was made without evidence. Secondly, the Appeal Court accepted FCMB’s submission that the Deputy Judge had particular regard to whether or not the failure was or was not trivial and that he ought rather to have considered whether it was serious or significant. Thirdly, the Court also accepted FCMB’s submission that the Deputy Judge failed to properly engage with the third stage of the enquiry and in that regard to evaluate all of the circumstances of the case, including those specifically mentioned in the English Civil Procedure Rules, which would have enabled him to deal with the applications justly. The second and third errors of the Deputy Judge in the Court’s view were readily understandable given that his decision preceded that of the new English Case Law guidelines. Since these errors had been made, the Court of Appeal decided to consider the matter again for itself.

The Court began by assessing the seriousness and significance of the default and came to the conclusion that the delays could not properly be regarded as serious or significant and that FCMB should have been granted the short extension that it sought.

Ground 2 - Submission to the Jurisdiction Counsel for FCMB argued and the Court of Appeal agreed yet again, that the Deputy Judge fell into error for the following reasons. First, as the Deputy Judge recognised, this application was made at a time when there was an outstanding and unresolved application challenging the jurisdiction. Indeed, that application had been listed and duly came

up for hearing on 8th May 2014, just over one month later.

Secondly, FCMB’s application of 11th December 2013 sought not only a declaration that the Court did not have jurisdiction to hear the dispute but also, and without prejudice to that jurisdiction challenge, an order striking out the claim as disclosing no reasonable cause of action or as being an abuse of the process of the Court.

Thirdly, the documents which FCMB sought were relevant to this application in that it would have enabled them to know what happened to the Redsear proceeds and whether they were transferred to Zumax. It would also have shed light on the merit of Zumax’s case on whether the claim fell within one or more of the classes of case in which permission to serve out of jurisdiction may be given.

Finally, the mere making of an application by FCMB supported by a witness statement cannot be said to constitute an unequivocal submission to jurisdiction.

Ground 3 – impediments to the claim FCMB were of the view that there are three fundamental impediments to the claim of Zumax i) the proceedings between Zumax and Finbank (now FCMB) in Nigeria in claim 784/2009 ii) the terms of a settlement agreement and consent order in the proceedings between Zumax and IMB (now FCMB) in Nigeria in claim 115/2005; and iii) the terms of a debenture made

by Zumax in favour of IMB (now FCMB) in 1998 The complaint the subject of claim 784/2009 is different from the subject of the present proceedings.

Claim 784/2009 is concerned with unauthorised transfers by Mr. Chinye from Redsear’s US dollar account with Chase to the accounts of persons or entities with which he was connected or which he controlled. The present proceedings, on the other hand, are concerned with transfers of funds from Redsear’s US dollar account to the US dollar correspondent accounts of IMB and IMB Morgan with Commerzbank for the purpose of transferring those funds on to Zumax. Accordingly the Court of Appeal was of the view that FCMB was right to say, that the funds in issue in these proceedings were comprised of monies which were purportedly accounted for and transferred from Redsear’s account to the correspondent accounts of IMB and IMB Morgan with Commerzbank but the Appeal Court also found that it was wrong to say that this necessarily means that these funds were all received by Zumax as they should have been.

The Appeal Court noticed that it could be seen from the statements of Zumax’s account with IMB that it received none of these funds. In these circumstances the Court was satisfied that Zumax had established a good arguable case on this issue and that the Deputy Judge was right to so hold. FCMB also contended that this suit was caught by the terms of clause 17 of a settlement agreement, which merged into and was supplanted by a consent order.

This order creates a cause of action estoppel against Zumax.

The Court of Appeal refused to accept these submissions claiming that it is well established that any foreign judgment is, if obtained by fraud, open to attack. Here there is evidence that IMB represented to Zumax that no more than N230million had been recovered when in fact the receivers had recovered sums considerably in excess of Zumax’s alleged indebtedness. Zumax maintains that this representation

was made dishonestly and that it entered into the settlement agreement and agreed to its embodiment in the consent order in reliance upon it. It also made it clear that it considered that the settlement agreement and the consent order were impeachable by reason of IMB’s fraud, and its refusal to pay the N150million asked for in the settlement agreement. The Court of Appeal ruled that upon the evidence given Zumax has a good arguable case on this issue.

FCMB further contended that under the terms of the debenture made by deed and dated 17th December 1998, Zumax charged all of its assets, including its book debts as security for all monies it owed to IMB, that the Redsear proceeds were the proceeds of its book debts, and that the debenture was effective to charge those proceeds and any cause of action in respect of them.

They also argued that the debenture became enforceable upon demand

by IMB or on the appointment of a receiver. Both events occurred in December 2002. At this point if and in so far as the charge was a floating charge, it crystallised and the deed became a completed equitable assignment to it of all of the assets charged and of Zumax’s rights in respect of them. In these circumstances, says FCMB, and given that IMB (and now FCMB) has enforced the debenture and remain out of pocket, Zumax has no title to Redsear proceeds, it cannot give a valid discharge in respect of them, and its directors cannot bring proceedings to recover them without the consent of FCMB (this was a new point not argued in the High Court but the Court of Appeal granted FCMB permission to argue the point in as much as it involved a pure question of law.)

The Court of Appeal rejected this argument on the grounds that it was arguable whether or not the charge was a floating charge in that it appeared to be a charge that could change from time to time. If the receivership came to an end in April 2005 by agreement and the management of the company returned to the directors, it is arguable that IMB agreed to convert the charge back to a floating charge and thus Zumax would have the ability to deal with its assets. Finally the Court of Appeal was of the view that FCMB had significantly recovered all of the monies to which it is entitled under the terms of the debenture and that in these circumstances FCMB is required to discharge all of the assets of the business from the security.

Ground 4 – the gateways The application for permission to serve the claim out of jurisdiction was based upon the following three grounds namely (a) the whole subject matter of the claim relates to property within the jurisdiction; (b) the claim is made for a remedy against FCMB as constructive trustee and liability arising out of acts committed in the jurisdiction; and (c) the claim is made against FCMB for restitution and liability arises out of acts committed in the jurisdiction.

The Deputy Judge held in the Court below that each was made out of the degree of arguability required.

FCMB contends that he erred in so doing for there is no arguable case that any of the three grounds is satisfied. (a) On the issue as to whether the subject matter of the claim relates to property within the English Courts’ jurisdiction, the Court of Appeal noted that it is Zumax’s case that it was and remains the victim of a fraud. Mr. Chinye authorised the transfer of the Redsear proceeds from Redsear’s dollar account at

Chase in London to the US dollar correspondent accounts of IMB and IMB Morgan in London for onward transfer to Zumax. Despite FCMB’s protestations to the contrary, it is plainly arguable that IMB and IMB Morgan did receive these monies but as yet they have not been paid to Zumax and FCMB has been unable to provide any explanation of what became of them. In these circumstances the Court of Appeal was of the view that Zumax is justified in saying that it is at least arguable that Mr. Chinye acted fraudulently in transferring these monies from the Redsear account to the IMB and IMB Morgan correspondent accounts; and further, that it is also arguable that these monies were never remitted to Zumax as they should have been as a result of the fraud of IMB and IMB Morgan, acting through Mr. Chinye. Moreover and in light of FCMB’s inability to say what has become of these monies, the Appeal Court claims that it is arguable that they (or their traceable proceeds) remain in this jurisdiction. (b) On the issue as to whether there is a claim for a remedy against FCMB as a constructive trustee and whether liability can arise out of acts committed within the English Court of Appeal’s jurisdiction Counsel for FCMB argued that proceeds represented the proceeds of book and other debts charged and assigned to IMB under an all assets debenture and this provides a complete answer to the claim because FCMB cannot be a constructive trustee. The Court of Appeal claimed that it had already addressed the debenture issue earlier on and does not accept that it provides an unanswerable obstacle to this claim. Zumax acquired a right, enforceable in equity, to prevent the monies being used for any other purpose. Zumax has a good arguable case that it retained the beneficial interest in these monies from the moment they were transferred to the correspondent bank accounts and that this interest constituted a proprietary security until the monies were applied for the specified purpose. (c) Finally, the Court of Appeal dealt with the claim against FCMB for restitution. Counsel for FCMB submitted that any liability for restitution did not depend upon any acts or omissions committed in the jurisdiction. He accepted that the alleged enrichment occurred in England but maintained that what made it unjust was the alleged failure to deliver the monies in Naira to Zumax in Nigeria. The Court of Appeal disagreed and formed the view that Zumax has a good arguable case and that unjust enrichment had arisen from acts committed in its jurisdiction, namely the alleged misappropriation by IMB and IMB Morgan of the Redsear proceeds by wrongfully retaining them or transferring them to other accounts and applying them for their own purposes.

For the above reasons the appeal was unanimously dismissed by all 3 judges of the Court of Appeal.

Costs - Note Bearing in mind the attitude of the English Courts towards costs, it is not inconceivable that FCMB may have expended costs in excess of £1million (One Million Pounds) about N450m (Four Fifty Million Naira) in this case since by losing the appeal they would have to bear not only their own costs as Appellant but the Respondent’s costs as well.

Stephen Kola-Balogun is the Principal Partner in Kola Balogun & Partners Legal Practitioners in Lagos.

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Mrs. Monica Mbanefo PHOTOS: Sunday Adigun

‘The Maritime Industry – A Major Revenue Earner’ Following her vast experience in the Civil Service, Mrs. Monica Mbanefo had the privilege of being a Director in the International Maritime Organisation making her an expert in the Maritime Industry.

In this discourse with May Agbamuche-Mbu, Jude Igbanoi and Tobi Soniyi, she explains how the maritime industry can generate more revenue for the government if properly harnessed.

Y

our career has spanned over four decades and in that time you have become a foremost expert in the Maritime industry locally and within the United Nation’s International Maritime Organisation (IMO).

The Nigerian Maritime industry itself is estimated to soon exceed $153 billion (as at March 2016), representing 30% of the current Nigerian GDP and with current efforts to diversify Public Revenue away from oil, what is your view on the strengths and weaknesses of the Nigerian Maritime Industry?

Well, the Maritime Industry I would say if well harnessed is the most lucrative and capital creative Industry in the world.

Each year IMO and all its Member States celebrate the World Maritime Day. The theme of this year’s World Maritime Day is “shipping: indispensable to the world”.

The World Maritime Day theme for each year, provides a focus for year-round activities.

Addressing the 28th Extraordinary Session of IMO Council regarding the theme for the World Maritime Day for this year, the SecretaryGeneral said that today 90% of world trade is carried by the international shipping industry.

Without shipping the import and export of goods on the scale necessary to sustain the modern world would not be possible. Yet the fact remains that most of the world’s population

is not aware of the vital role shipping plays in their everyday lives.

This population referred to by the SecretaryGeneral is in the developing countries, particularly Africa.

In many developing countries the socioeconomic context may require special attention to be given to sectors such as agriculture, education, health and housing, resulting in both governments and the general public giving insufficient priority to maritime issues.

The maritime industry makes a unique contribution to economic development. No matter where you may be in the world, if you look around you it is almost certain that you will see something that either has been or will be transported by sea. The maritime industry provides an important source of income to a number of developing countries.

It is not limited to ships carrying cargo.

When we talk about the maritime industry, we include the money earned by Seafarers; include the money earned from Ship Recycling etc.

The economy of some developing countries have been boosted by monies remitted home to their families by its national seafarers serving on ships worldwide. When a ship is too old to sail it is recycled. There is a lot of money in ship recycling. For developed countries it is too labour intensive and it is not cost effective.

But developing countries realise that you do not need a Ph.D. to break up a vessel and to sort out its components. You just need the ordinary man on the street. They also earn a lot from this because the owners of these vessels pay them to do it. When they have

done it they sell what they have recycled so they are also making good money from that.

Developing countries now lead the world in some of the industry’s ancillary businesses including registration of ships, supply of seagoing manpower and ship recycling.

The leading ship recycling countries are India, Bangladesh, China and Pakistan.

Philippines supplies more than one quarter of the world’s seafarers and by an executive order Filipino seafarers have to remit a substantial percentage of their salaries home to their families.

The maritime industry is an industry that must be encouraged.

In your time at the UN’s International Maritime Organisation you consistently demonstrated an ability to influence, optimise and increase efficiencies of your teams and in your various roles. As a seasoned administrator in the Nigerian Civil Service, tell us about your grounding in the Nigerian civil service In the 60s, 70s and early 80s the Nigerian

"THE MARITIME INDUSTRY I WOULD SAY IF WELL HARNESSED IS THE MOST LUCRATIVE AND CAPITAL CREATIVE INDUSTRY IN THE WORLD"

civil service was an institution to be proud of. There were many experienced people in the service who were highly dedicated and willing to impart their knowledge and experience on others.

When I applied for the job of the Head of Legal Office of IMO, a United Nations Specialised Agency, one of the factors that contributed to my success was the experience I acquired from the Nigerian Civil Service.

In those days the Nigerian Civil Service was highly respected. Everybody aspired to go there. You applied there first then tried the other organisations if you failed to get in. I applied immediately after law school and just a handful of us were selected. In the Federal Ministry of Justice there were experienced lawyers who made it their duty to train you.

There was discipline.

I remember when I joined the service as a pupil state counsel. I started in Legislative Drafting. Mr. Thomas (as he then was) was my first boss and then Mr. Soetan. Then I moved to Civil Litigation. My Director there was Mr. Laoye and then Dr. Awogu (as he then was). The Federal Ministry of Justice had several departments. The officers were posted every two years to a different department to enable them acquire experience of different aspects of law.

So by the time you have moved around the divisions, you were qualified in every aspect of law. You had experience of how to prosecute from the DPP, how to litigate from civil litigation. Industrial and Mercantile Law was responsible for contracts and legal

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"THE CIVIL SERVICE IS THE FOUNDATION ON WHICH A NATION IS BUILT. IT SHOULD NOT BE POLITICISED. CIVIL SERVANTS SHOULD BE PREPARED TO SERVE EVERY GOVERNMENT, THEY SHOULD BE INSULATED FROM POLITICS" advice, Legislative Drafting as the name implies, International Law. Having acquired all the experience you were then posted out as a legal adviser to other ministries to acquire administrative knowledge and the law relating to the functions of those ministries.

The first ministry I was posted to was the Ministry of Labour, where I specialised in labour law, the Factories Act, and Trade Unions. Next, I was posted to the Ministry of Water Resources where I focused on laws relating to Water Resources, then I moved to the Ministry of Transport and Aviation.

In Transport and Aviation I specialised in Aviation law, transport law, the Ports and so on. My experience from the Ministry of Justice prepared me for IMO. What are your recommendations for restructuring and reforming the Civil Service to eradicate problems in order to raise the standards of proficiency and professionalism in the Civil Service?

Regarding the problems that prevent the efficiency and performance I would say that top of the list are the insecurity of tenure and poor remuneration.

The civil service is the foundation on which a nation is built.

It should not be politicised. Civil Servants should be prepared to serve every government, they should be insulated from politics. Today it may be the ‘green party’ in power, tomorrow it may be the ‘yellow party’ but you should serve them with your whole heart. Once people in service are influenced by politics they wreck the civil service.

The dignity that is due to the Civil Service should be restored. Security of Tenure is paramount. Once you know your job is secure you will put your whole heart in it. Dignity of labour must be emphasised. Let the Civil Servants realise that their job is appreciated.

They should not be taken for granted or denigrated. A conscious effort should be made to insulate the civil service from politics. Let civil servants be civil servants, serving the nation no matter who is on the seat. In those days politics was not discussed in any office, it was not allowed.

IMO has developed a number of conventions regarding the protection of the marine environment and the prevention of marine pollution, developing countries such as Nigeria often lack the capacity to successfully implement these conventions.

How does the IMO assist developing countries in fulfilling their obligations under these conventions?

IMO recognises the need for capacity building to enable developing countries fulfil their obligations regarding conventions. It is well aware that some administrations have been limited by the financial and technical resources to effectively adopt and enforce international regulations. They require qualified and skilled manpower coupled with good legal and administrative framework to achieve that.

I actually retired as Director of Technical Cooperation Division of IMO. The function of the Division is to help developing countries build capacity to enable them to implement IMO conventions effectively.

IMO has for this purpose established maritime training institutions like the World Maritime University (WMU) in Malmo, Sweden and the IMO International Maritime Law Institute (IMLI) in Malta.

IMO also offers technical and financial support

to maritime institutions in developing countries.

It has included, as a vital part of its technical cooperation programme, projects for the provision of technical advice and assistance to governments on request.

It sends out experts to conduct training programs for developing countries and also gives scholarships for capacity training. It offers capacity building services in different countries.

A country that needs technical assistance only need to put in a request for assistance and experts will be sent by IMO to assess and assist the country with their needs.

Currently, many experts are advocating for the government to develop a national maritime policy to enable stakeholders in the maritime sector harness its untapped potential. In your view what should be the essential features of a viable shipping policy?

In my view the essential elements to establish an effective shipping policy include 1. a more integrated approach towards the development of maritime policies; 2. better engagement with stakeholders and forging stronger partnerships with industry, regional and international organisations; 3. greater capacity building at all levels as the demand for manpower, new skills and expertise is immense; 4. addressing emerging concepts such as the blue economy and sustainable ocean governance.

A growing number of disputes in the maritime sector are being resolved through international arbitration because of several reasons paramount of which are the speed and confidentiality of proceedings. Additionally, experts have advocated for the establishment of a regional maritime arbitration centre in Africa. Do you see any merit in this proposition?

I do. I see great merit in it. Although arbitration as a dispute settlement mechanism has gained a foothold in Africa it is doubtful if the same can be said of maritime arbitration in Africa. Africa is yet to find its place when it comes to international maritime commercial arbitration. It is commonplace to find in international commercial agreements involving African commercial interests, forum selection clauses that designate Paris, London, New York or Hong Kong as a forum for arbitration. A number of things account for the absence of maritime arbitration centres in Africa. One is the issue of capacity with respect to the knowledge, expertise and skill in handling maritime disputes involving the specialised area of maritime law. The expertise for maritime commercial arbitration is gained over time, and so require a conscious effort to build capacity especially with respect to practising lawyers and judges.

In your opinion what practical steps can the courts, arbitrators and maritime arbitration institutions take to position Nigeria as a neutral and favourable forum for maritime arbitration nationally and internationally?

"YOU CAN DRAFT ALL THE BEST LAWS IN THE WORLD, BUT IF THE PEOPLE ARE NOT READY TO IMPLEMENT THEM, IT IS NOT WORTH IT. SO WHAT MATTERS IS THE PEOPLE’S MINDSET"

To build capacity for arbitrators and establish a reliable and generally accepted seat of arbitration it is important that deliberate, focused and targeted policies are put in place in Nigeria.

For the resolution of disputes particularly those with an international character, parties expect the exhibition of competence and professionalism amongst the arbitrators. They expect them to have the requisite skill and experience as well as the specialised knowledge that may be required to adjudicate the cases. They must, first of all, establish expertise and capacity and create a conducive environment. Parties to a contract will only accept a venue that has the required capacity and conducive environment.

Because Nigerians are very industrious, they can acquire expertise in any chosen field.

Once Nigerians acquire expertise in Arbitration Nigeria will be a good forum for Arbitration in Africa.

Ship ownership has been identified as one of the biggest challenges in the Nigerian shipping industry. Nigerian banks are said to be reluctant to provide loans to prospective buyers because of the huge capital investment involved. What can be done to ensure that Nigeria moves from hiring and leasing ships to really owning and crewing ships?

Owning a vessel is very capital intensive.

New vessels may cost millions of dollars. It takes years to build a vessel, depending on the size and its equipment. Because of this you need a lot of capital. But you cannot say you intend to own a vessel because others have vessels if you do not have the capacity to do so. Shipping requires expertise. You have to be sure of the people who man the ship.

The right environment should be created to encourage those who can afford it to own ships.

Regarding crewing, our young people should be made aware of the advantages of seafaring.

It has carrier prospects. They are paid in hard currency. Our maritime training institutions should be given priority. More effort should be put into finding placements for the ones who have trained to do Sea time.

According to recently published reports, the estimated number of seafarers worldwide in 2015 is about 1.6 million.

With regard to supply and demand, the recent findings reveal a shortage of 16,500 qualified seafarers and that figure is expected to grow.

I believe that Nigeria would have a role to play, to help fill the demand that exists for seafarers. Our young people should be made aware of the prospects in the seafaring profession. They should be encouraged by providing the facilities and the environment to enable the training of seafarers. If this is done, we can, without a doubt become a hub for the supply of seafarers.

As a lawyer it will not be difficult for you to appreciate the role the law plays in establishing the standard of acceptable and permissible behaviour in society. However all too well as Nigerians we understand that the mere existence of law is not a guarantee for creating good standards and attitudes. As an expert draftsman how do we in Nigeria go from finely drafted laws to creating the necessary attitudes for positive change?

As the saying goes “a cloak does not make a monk”. You can draft all the best laws in the world, but if the people are not ready to implement them, it is not worth it. So what matters is the people’s mindset. Nobody is above the law. People must understand that the law is not for certain people, that the law is not for those who cannot buy their way out, that the laws are not made in order to punish people or to make the small man smaller or the big man recognised as a big man . No this is not its purpose. Take simple traffic regulations, you say to everybody “you have to drive on the right” it looks simple but occasionally you see somebody coming in the wrong direction. You know what will happen if you do not notice in time. Somebody may get killed! Every single law is made for the good of the people. It is not made to punish.

Because we live in a society there must be laws to regulate our behavior. If you say “this must not be done” then nobody should do it, if you say “it has to be done that way” it has to be done that way. Therefore when we make laws we should not make them for the fun of making them. Study the law properly, know why you are making it, let people understand that the law is the law, and let them obey it. Unless we learn to obey the law we cannot progress, because it protects us, it guides us.

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12.07.2016

‘Arbitration in Nigeria: Prospects and Challenges’ Jerome Finnis is Counsel in Hogan Lovells' International Arbitration Group in London.

He advises on all aspects of international arbitration, with a strong focus on oil and gas and Africa-related disputes. He was in Nigeria as a speaker at the just concluded 1st International Chamber of Commerce Africa Regional Arbitration Conference, where he spoke to Akinwale Akintunde on what can be done to make Nigeria a more attractive Arbitral Seat for the African sub-region

A

s an arbitration expert who has been involved in arbitration around the world and has seen different jurisdictions develop their arbitration practice. What is your opinion on the evolution of Arbitration and ADR in Africa and Nigeria

in particular?

My perception is that leading Nigerian arbitration practitioners and users are working very hard to further develop Nigeria's arbitration law and institutions, and that there is a strong impetus to drive that process forward. Key aspects of this process include bringing the Nigerian Arbitration and Conciliation Act fully up to date, and at the same time, ensuring that Nigerian courts recognise their statutory duty not to intervene in the arbitration process, which is a free-standing dispute resolution regime.

And continuing to foster the existing strong community of practitioners who specialise in the conduct of arbitration, and do not treat it as a poor relation to court litigation.

What in your opinion should be done to

make Nigeria a more attractive Arbitral Seat for the African sub region?

The priority must be to ensure that the Nigerian Arbitration and Conciliation Act is brought fully up to date and that it is completely aligned with the needs of its users.

What would you suggest should constitute Nigeria's policy on arbitration?

The policy should be non-interventionist – in other words, it should recognise that commercial parties are free to agree on how their arbitrations should be conducted, where, and according to what rules – subject only to such safeguards as are strictly necessary in the public interest. And that the issuing of an arbitral award is the final step in the process, rather than the prelude to a lengthy battle before the Nigerian courts.

As an arbitrator with a verse knowledge in practice, which would you favour, institutional or ad-hoc arbitration?

It depends on a variety of factors, there’s no "one size fits all" approach. But the key factor is the identity of the arbitrators themselves. And that is usually more important than whether the arbitration process is conducted on an ad-hoc basis or administered by an arbitral

Jerome Finnis

institution such as the ICC. If you select the right arbitrators, in many cases there is no need for an arbitral institution to be involved. That said, even with the best arbitrators in the world, sometimes it is very helpful to have an arbitral institution such as the ICC involved, because it can ensure that if the arbitration runs into difficulties, it gets back on track quickly. If there is a problem with the arbitrators themselves, the institution can fix that.

Despite Arbitration's obvious effectiveness, litigation remains the most used in resolving commercial dispute. Why do you think this remains the case in Africa and in Nigeria particularly?

First of all, I would query whether litigation is more widely used than arbitration. At least in the context of international commercial disputes, most sophisticated clients recognise that international arbitration is really the only game in town – in particular, because the widely adopted New York Convention provides a simple and effective mechanism for enforcing arbitral awards in many countries around the world. Whereas, if you’re litigating in a national court, the court's judgment will usually have far less "international currency" – because court judgments are usually much more difficult to enforce internationally.

There can be a perception that arbitration is more expensive than litigation, but it should not be. When you have the right alignment of relationships between clients, counsel, arbitra-

tors and institutions, you can tailor-make a procedure that is more cost effective, rapid, and binding than litigation. It is important to remember that, in court litigation in Nigeria, if my client wins the case completely, it will usually only be an awarded a minimal amount in respect of its costs. Whereas, if my client is 100% successful in an arbitration seated in Nigeria, it can (and often will) be awarded 100 percent of its costs. So that is a really important difference between arbitration and litigation.

Usually, litigation and arbitration are regarded as mutually exclusive dispute resolution methods, is it possible to combine both forms of dispute resolution to develop an effective strategy?

No, I think it is dangerous to try to do that.

You have to recognise that they are completely different processes. Commercial contracts need to make a clear election as between arbitration and litigation. If you choose arbitration, there should be no need to go anywhere near the courts, because arbitration is a self-contained process.

In general, what is your assessment of this ICC conference going on?

This is a very important conference – not only for users of arbitration in Nigeria, but also more widely for arbitration in Africa. And, I think that this conference is going to give real impetus to the reform of the Nigerian Arbitration and Conciliation Act.

Hogan Lovells Provides a Perspective on Africa at 2016 Forum Akinwale Akintunde Delegates from across the globe gathered at Hogan Lovells Africa Forum in London recently, for an engaging day of discussions focused on the forces of disruption, and agents of change and innovation which are shaping the Africa narrative.

A series of panel discussions at the forum covered some of the most topical and important issues facing businesses in, or looking to invest in,

Africa, including Transforming African economies, Managing bribery and corruption risk, Solving the infrastructure conundrum, The changing face of finance, Solving Africa’s energy crisis, Innovation in FinTech, and Africa's arbitration capacity.

The members of Hogan Lovells' global Africa practice were joined on panels comprising of leading industry experts, and clients, including Tunde Ogunseitan of the ICC International Court of Arbitration, Matthias Schweinfest, GE

FIRM DRAGS NAF TO COURT OVER SEIZURE OF ITS PROPERTY N500,000,000 (Five Hundred Million Naira) jointly or severally being general damages suffered by the plaintiff as a result of the Nigerian Air Force, the Chief of Air Staff, NAF Investment Limited, Commander 107 NAF Camp, Victoria Island Lagos unlawful trespass, invasion and illegal seizure of the plaintiff’s property known as No. 13B Reeve Road, Ikoyi-Lagos.

In its Statement of Defence, the Nigerian Air Force, the Chief of Air Staff, NAF Investment

Power; Franck Behiblo, Quantum Global; Isha Johansen, Sierra Leone Football Association; Gregory Ness, Standard Chartered Bank; Denys Denya, Afreximbank; and Fabio Borba, Abraaj Group and Themis Energy Alex Vines, Head of Africa Programme at Chatham House, rounded off the days' discussions with a thought-provoking closing keynote.

Commenting on the Forum, Andrew Skipper, Head of Hogan Lovells' Africa practice, said: "Our

CONTINUED FROM PAGE 4

Limited, Commander 107 NAF Camp, Victoria Island stated that they are not aware of any development regarding the lease agreement executed between BCL and the Minister of Lands, Housing and Urban Development and also that they are not aware of any sum paid thereof and put the plaintiffs to the strictest proof thereof.

The NAF insisted that being in constructive possession, in 2004 it indicated interest in buying the Federal Government’s properties at Nos. 13A and

13B Reeve Road in Ikoyi Lagos during the Federal Government’s monetisation policy implementation.

Accordingly, the NAF maintained that the plaintiff is not entitled to any of the prayers sought for and urged the court to discountenance such prayers as frivolous and baseless.

Justice Idris has however adjourned the matter from July 1 when trial should have commenced till October 24 due to NAF’s lawyer claim that he was ill.

Africa Forum 2016 has been the perfect conduit for exciting and engaging discussion, bringing together experts from across a wide range of industries, sectors and countries, all with the common goal of successfully doing business in Africa. There is no doubt that the continent faces disruption – corruption risk, economic headwinds and energy supply to name a few – but facing these is accelerating discussion and action, creating opportunities for investors willing to innovate to ensure future economic growth, prosperity and security."

Hogan Lovells has been active in Africa for over 30 years, with over 250 lawyers globally working in more than 40 countries across the continent.

Recent work in the region includes advising Niger and Benin on the US$4.3bn West African rail loop project to construct and rehabilitate more than 2,000km of rail track across 4 countries in West Africa: Côte d'Ivoire, Burkina Faso, Niger and Benin, and a super-major oil company on one of the largest Group Actions brought before the English Courts in relation to two oil spills that occurred in 2008 in the Niger Delta.

12.07.2016

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IKPEAZU v OGAH: The Law, Facts and Fiction Mike A. A. Ozekhome

A Introduction

bia, like Kogi State, presents a peculiar legal conundrum, what the late colourful politician, Adelabu Adegoke, will call “Pekelemesi” (peculiar mess).

The judgment of the FHC, Abuja, removing Dr. Okezie Ikpeazu as Governor of Abia State, is nothing but a judicial coup. With all humility, there are just too many things wrong with it. INEC did not help matters by peremptorily handing over a certificate of return to Dr. Uche Ogah, even when Ikpeazu had already appealed, filed a motion for stay of execution and got INEC duly served.

The haste was unnecessary. It smacks of political undertones, especially since the news flying in the market place (not independently confirmed), was that the game plan was for Ogah to be sworn in immediately on the platform of PDP, and then immediately decamp to APC, to enable APC control one state in the S/S of Nigeria. If this was the expectation, it is a legal illusion, as the entire judgment is fundamentally flawed in law. Thank God, Abubakar Malami, Attorney General, Federation, has calmed the raging storm, by denying Government involvement, and advising the combatants to await final court decisions.

“Lis Pendens” Under the doctrine of “Lis Pendens” (“suit pending”), once a party is aware that a suit has been submitted to a court of law, it must stay further action by not resorting to self help, “viet armis.

In GOVERNMENT OF LAGOS STATE v OJUKWU (1986) 2 NWLR (pt 18) 621, the Supreme Court held that once a party is aware of a pending suit, he should not take further steps in the matter, as a he does so at his risk.

This, even where no injunction has been specifically applied for or granted. See also VASWANI TRADING COMPANY v SAVALAKH (1972) 7 NSCC 692.

INEC, on becoming aware of Ikpeazu’s appeal and service of the motion to stay execution, ought to have exercised restraint by not presenting Ogah with a certificate of return. Contrary to analysts’ argument, INEC would have committed no contempt by waiting.

INEC should not have done anything to pre-empt the outcome of the case by “accelerating or rushing the process of execution”(RASTICO NIG LTD v SGS (1990) 6 NWLR (pt. 158) 608).

In any event, by the provisions of section 143 of the Electoral Act, a person whose election is nullified shall stay in office pending the determination of his appeal, so long as he has notified INEC of same. And he even has 21 days to do this. Under sections 140 and 141, disputes over nomination and qualification within a political party can only result in the holding of a fresh election between the two combatants (Ikpeazu and Ogah), where a court or tribunal nullifies the election for “any reason whatsoever”, including that the person elected (Ikpeazu), was not qualified to contest the election in the first place (as held by the FHC). Such matters are post-election, over which only the election tribunal, not the FHC, has jurisdiction.

It can never result in the certificate of return being given to Ogah, a situation envisaged only under section 142, where the issue is that the sitting Governor did not have the majority of votes cast over his opponent. Section 140 (2) specifically

Dr. Okezie Ikpeazu

Dr. Uche Ogah

states that the “election tribunal or court shall not declare the person with the second highest votes or any other person as elected, but shall order for a fresh election”. It is all so clear.

This was the major reason the Supreme Court affirmed the decision of the Court of Appeal and nullified that of the election petition tribunal in February, 2016, in AISHA ALHASSAN v DARIUS ISHAKU. The FHC’s judgment to the effect that Ogah should be “sworn in immediately”, and the hasty act of INEC in giving a certificate of return to Ogah, all attempted to abort and foreclose completely, Ikpeazu’s constitutional right of Appeal (see section 241 of the 1999 Constitution and section 143 of Electoral Act; EYESAN v SANUSI (1984) 15 NSCC 271; THE STATE v OLADOTUN (2011) LPELR 1961.

The judgment, it is submitted, is therefore dead on arrival; as dead as “dodo”.

INEC first denied ever receiving any notice of Appeal before issuing a certificate of return to Ogah, claiming it received only a notice of Appeal, but not a motion for stay of execution. INEC later somersaulted, upon subsequent evidence produced by Abia State Attorney General, Umeh Kalu, which showed that one Saleh Ibrahim, Senior clerical officer in INEC Headquarters Legal Department, received and stamped both Notice of Appeal and motion for injunction, at 12:50 pm, on June 29, 2016.

Under the Electoral Act, INEC has one full week to issue a certificate of return.

So, why did it rush to do so within three days?

of a political party and is sponsored by that political party; and he has been educated up to at least School Certificate level or its equivalent. Section 182 (1) of the 1999 Constitution lists disqualifying factors as: voluntary acquisition of citizenship of another country; being elected to such office at any two previous elections; being adjudged a lunatic, or a person of unsound mind; being under a sentence of death; or if within 10 years before the election he has been convicted and sentenced for an offence involving dishonesty; or has been found guilty of the contravention of the code of Conduct; he is an undischarged bankrupt; or he has not resigned, withdrawn or retired from the employment of public service of the federation or a state at least thirty days to the date of the election; belonging to any secret society; or he has been indicted for embezzlement or fraud by a Judicial Commission of Inquiry or an Administrative Panel of Inquiry or a Tribunal; or has presented a forged certificate to INEC. For the records, Ikpeazu suffered none of the above disabilities. It is clear therefore that, whether by way of qualification or disqualification, Dr. Ikpeazu was as clean as a whistle.

In DANGANA V USMAN (2013) 6 NWLR (pt 1349), 50, the Supreme Court had however held that qualification/ disqualification to contest an election is both a pre – election and post - election matter”, over which both the High Court and the relevant Election Tribunals have jurisdiction. The more recent cases of WAMBAI v DONATUS (2014) 14 NWLR (pt 1427) 223, CHUKWUEGBO v AGU & ORS (2015) LPELR 25578 (CA), APC v PDP (CA/EK/EPT/ GOV/1/2015, IKECHUKWU v NWOYE (2015) 3 NWLR (pt. 1446) 367, are authorities, that only an election tribunal, not FHC or High Court, has jurisdiction over such matters.

Ogah was never nominated by PDP as a candidate in the election as required by sections 31 and 32 of the Electoral Act. The PDP Guidelines which the court also relied upon was (from my perusal of the case), not even a document placed before it. How could it therefore have speculated on it? A court is not a knight errant in shining armour, on a voyage of investigation and discovery, like Mungo Park, Clapperton, Vasco Dagama or Lander Brothers.

It is respectfully submitted that the possession of a forged tax certificate, or lack of it, is no justification for a Court to remove a sitting Governor, especially where it was not demonstrated during open trial that as a civil servant at all material times, who paid his tax under PAYE, he could have falsified his own tax certificate, when he was not the tax officer who issued same.

Note that Section 133(2) of the Electoral Act defines "tribunal” or “court" to mean “(a) In the case of Presidential election,

Pre – Or Post-Election The characterisation of a dispute as a pre-election or post-election matter is determined by whether the dispute was presented for judicial determination before or after the election. If presented before the election, it is a pre-election matter. If brought after the election and after the challenged person has been elected, it is a post election matter. See CHUKWUEGBO v AGU & ORS (2015) LPELR-25578(CA). As a pre-election matter, it can be presented only in a High Court or FHC, by Virtue of S.31(5) and (6) and S.87(9) of the Electoral Act. But as a post-election challenge of an elected person's qualification, for election, it can only come before an election Tribunal. See SALIM v CPC (2013) LPELR-19928(SC Qualification and Disqualification Section 177 of the Constitution provides that a person shall be qualified for election to the office of Governor if he is a citizen of Nigeria by birth; he has attained the age of thirty-five years; he is a member

the Court of Appeal and (b) In the case of any other elections under this Act the election tribunal established under the Constitution or by this Act.": This means that Ogah could only have challenged Ikpeazu’s alleged non qualification (if at all), at an election tribunal, not FHC. Further, section 31 (5) (6) Electoral Act allows a “person who has reasonable grounds to believe that any information given by a candidate in the affidavit or any document submitted by that candidate is false” to sue at the High Court or FHC on such and the court on discovering such falsity, shall issue “an order disqualifying the candidate from contesting the election”.

This means that the jurisdiction of the court is limited to suits brought before the holding of election, not after. The phrase used is: “the Court shall issue an order disqualifying the candidate from contesting the election”; not “after contesting the election”. The canons of interpretation are trite that the ordinary and literal meaning of a statute shall be accorded it by a court, where the intention of the Legislature is explicit. See OJOKOLOBO v ALAMU (1987) 3 NWLR (Pt. 61) 377; UGWU v ARARUME (2007) LPELR-3329(SC); NWANKWO & ORS. v YAR'ADUA & ORS.(2010) LPELR2109(SC) What is more, section 141 of the Electoral Act provides: “An Election tribunal or Court SHALL NOT UNDER ANY CIRCUMSTANCE declare any person a winner at an election in which such a person has not fully participated in all the stages of the said election”.

In CPC v INEC (2011) 18 NWLR (pt 1279) 493 (SC), the Supreme Court emphasised that one cannot organise an election between a political party and a human being; that an election is contested and won by human beings who have flesh and blood, not by political parties, whose only role is to sponsor a candidate.

In CPC v OMBUGADU (2013) LPELR 21007 (SC), the apex Court also expressly overruled AMAECHI v INEC (2008 5 NWLR (pt 1080) 227, thus: “The implication of section 141 is that while a candidate must be sponsored by a political party, the candidate who stands to win or lose the election is the candidate and not the political party that sponsored him….. parties do not contest, win or lose election directly; they do so by the candidate they sponsored”.

So, under what law is the FHC imbued with power to remove a sitting Governor, or to do so on a mere allegation of presenting a forged tax certificate in a case prosecuted by mere affidavit evidence? How do you “convict” and punish a person who has not been put through the furnace of an adversarial trial, with an opportunity under section 36 of the Constitution, to cross examine his adversaries? What forensic expert evidence was advanced in a merely documentary case, without cross examination, viva voce? How do you prove a criminal case “beyond reasonable doubt” on mere affidavit evidence in a mere civil proceeding? How do you remove a sitting Governor overwhelmingly voted for by his people, by judicial fiat, and order his opponent who never sought for votes from Abians, sworn in, in an intra – party quarrel, when section 141 Electoral Act clearly outlaws AMAECHI’S CASE and warns that “under no circumstances” should a court “declare any person a winner at an election in which such a person has not fully participated in all stages of the said election”? Nigerians eagerly await the Court of Appeal’s decision, then the Supreme Court’s.

Chief Mike A. A. Ozekhome, SAN, OFR, FCIArb. is a Constitutional Lawyer and Human Rights Activist

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12.07.2016

Niki Tobi JSC (1940-2016): Tribute to a Great Jurist Adebambo Adewopo

I

n more than half a century of the history of the Supreme Court of Nigeria and in its great chambers, have sat great jurists of remarkable energy and legacy, who we often commemorate for the impact they have made in the judicial firmament. The Supreme Court itself, the highest and final court of the land, is truly the epitome of the majesty and supremacy of the law profession. Every learned advocate who has ever stood before the venerable Justices of that court, particularly in their perfect panoply can testify to this truth. Honourable Justice Niki Tobi has not only shared in that history but has helped in the shaping of the Nigerian jurisprudence as propounded by the court in all its authority, its fallibility notwithstanding.

Until his death on 16th June 2016 after 25 years on the bench, he held the unique privilege of the office of the Honourable Justice of the Supreme Court of Nigeria, evidently the most distinguished honour according to the order of judicial precedence of this country. By the 2015 official record, he was one of the 87 Honourable Justices of that great citadel including past Chief Justices of Nigeria since its inception in 1956.

Diminutive in stature yet towering in presence, Justice Niki Tobi was destined ultimately to sit at the Supreme Court. In a sense that is both symbolic and historic, his entry to the Supreme Court was the second of its kind in the history of the court. Justice Niki Tobi was the only other professor of law to have sat in the court on the heels of the legendary Justice Teslim Olawale Elias, who himself was Professor, Dean, AttorneyGeneral of the Federation and Chief Justice of the Federation.

From a humble background, Justice Tobi eventually fulfilled his determination to study law. He took his LL.B and LL.M degrees from the University of Lagos and Ph. D from the University of Nigeria. Like every judge, Justice Tobi did not start his law career on the bench.

He started at the public bar as State counsel before he assumed his academic career in 1976 at the Faculty of Law University of Maiduguri, where he would first etch his name in the legal academe. Within a decade, he became Professor, Dean of law, Chairman of the University Consultancy, Deputy and Acting Vice Chancellor, all at the same time by the time he left for the bench in 1985. At Maiduguri, he was clearly the leader of the professoriate, which included our ‘good old teachers’ like Professors Olusegun Yerokun, Nnamdi Aduba, among others. He was notable and iconic in truth and indeed. For several years, he taught Constitutional Law, Jurisprudence and Nigerian Legal System and probably other courses. He edited the Maiduguri Law Journal, one of the few law journals at that time.

I had the privilege of being taught by this great scholar. He was simply a delight to listen to in the classroom and I cannot recall any serious student who would miss his class. He had a commanding and pedagogical presence and he liked students to argue with him. His narrative of the constitutional history of Nigeria, laced with back-of-the-scene account you would not read in textbooks, was refreshing and riveting. Above all, he liked brilliant students. At moot court trials, he would push students to their limits. He was not a teacher to hide the brilliance in any student. I vividly recall his open commendation of Ibrahim Buba, now Honourable Justice of the Federal High Court, in one of the trials. It was under his charge that Joe-Kyari Gadzama SAN, Paul Ricky Tarfa SAN, Professor Andrew Chukwumerie SAN, Professor Mamman Tahir SAN, Professor Maxwell Gidado SAN, Professor Isa Ciroma, to mention a few among other eminent lawyers, were churned out to take the profession. Tobi would always be remembered by that generation as the chief teacher and mentor. To all intents and purposes, within a decade sojourn in Maiduguri, he had made his mark, packed with the legacy of written books and brilliant lawyers in his tutoring quiver, he was already eminently accomplished as a reputable academic.

Surprisingly to many of us, Tobi had a keen eye

The late Hon. Justice Niki Tobi, JSC

on the bench. Irrepressible achievers would hardly be satiated, certainly not Professor Niki Tobi on a score of achievements. Having conquered the academic world, he took another stage on the bench and nationally. He assumed duty as Honourable Judge of the High Court in Rivers State judiciary, where again I would be privileged to meet him as a budding lawyer in Port Harcourt fresh from law school. There I struck another level of relationship with him.

Right from his High Court days, it was clear he has taken his towering presence to the bench.

With combined 17 years as High Court and Court of Appeal Judge sitting in Lagos and Enugu behind him, his elevation to the Supreme Court in 2002 until his retirement in 2010, his total 25 years judicial career was marked with nothing short of a distinguished academic, intellectual and juristic excellence. Justice Tobi belonged to the enviable scholars’ cult of the bench. Like the Biblical Naphtali, he was imbued with the beautiful faculty of articulation with which he firmly expounded the law. He was an outstanding jurist of no mean repute, ever probing, intensely erudite and strongly analytical. He was both idealistic and pragmatic.

As far back as being a Justice of the Court of Appeal, his dictum in CARIBBEAN TRADING & FIDELITY CORPORATION v NNPC (2002) has added to existing cases and materials in the study of Nigerian Legal System taught by him many decades earlier. Contextualising the contemporary place of English law authorities in Nigerian courts, his Lordship said: ‘English is English.

Nigerian is Nigerian. The English are English. So also the Nigerians are Nigerians. Theirs are theirs.

Ours are ours. Theirs are not ours. Ours are not theirs. We cannot therefore continue to enjoy this borrowing spree or merry frolic at the detriment of our legal system. We cannot continue to pay loyalty to our colonial past with such servility or servitude. After all, we are no more in slavery.’ A case of juristic patriotism and activism rolled into one!

Justice Tobi had great admiration for superb advocacy and excellent legal research. And for that reason, most brilliant and resourceful lawyers would find succour in him, of course not at the expense of dispensing justice according to the law. As a young lawyer, I had been privileged to practice in his court in Port Harcourt and I have witnessed his commendation of sound advocacy of counsels like OCJ Okocha and FA Osho, among others, at a time, in a prophetic manner, long before they took the silk. One may not continually agree with his judgments in every material particular, but they all bear his characteristic

depth of reasoning, lucidity of expression and the wit of a sage. He took systematic scholarship and intellectual industry to the bench and brought a refreshing regime of adjudicatory fidelity to the fore. With the clarity and transparency of a sagacious judge, he often unravels the opacity of esoteric legal submissions and made it difficult for clever barristers to make issues out of nothing and nothing out of issues. For instance, in SABURI ADEBAYO v A G OGUN STATE (2006), he threw a whiff of disapproval at the whimsical use of the constitutional right of fair hearing by litigators: ‘In recent times, parties with bad cases raise the issue of fair hearing in most inappropriate cases to bamboozle the court. Fair hearing provision is the machinery or locomotives of justice, not a spare part to propel or invigorate the case of the user. Parties who have nothing to canvass in their case should leave fair hearing alone.’

Justice Tobi was characteristically passionate about law; little wonder he was both a consummate academic and judge who entrenched the primacy of law over every profession. On every opportunity, he consistently upheld the supremacy of the Constitution and of rule of law. Judges especially Supreme Court judges have made great constitutional pronouncements, it is no exaggeration that Justice Tobi was a constitutional law expert who not only taught and interpreted the Constitution but also wrote one, making him a constitutional oracle only reserved for few men.

FRA William and Professor Ben Nwabueze have remained the only two in recorded Nigerian history. In his often cited reasoning in INAKOJU v ADELEKE (2007), he redefined the path of constitutional law on impeachment under section 188 of the Constitution 1999 and provided a code of honour for any legislative House that wishes to impeach its Governor or Deputy Governor under a democratic system. One of his earliest judgments at the Supreme Court in NEPA v EDEGBERO (2002) at the periphery of dissention and later in NWANA v FCDA (2004) engender a clarification of the boundaries of dissenting and concurring judgments, thereby helping to place the authority of judicial pronouncements in its correct perspective. Perhaps one of his most controversial judgments was the presidential election petition in 2007 in BUHARI v INEC (2008), largely because of the nature of the case itself, like election petition cases, especially at the highest level.

It was probably unknown to him during his academic years whilst teaching constitutional law that he would become a dramatis personae in the constitutional history he was teaching. It was providential that, in 1999, he was appointed Chairman of the Constituent Assembly, which produced the present 1999 Constitution and in 2005, he again was called to chair the Constitutional Conference, both landmarks in the political history of Nigeria. Tobi JSC was a great jurist to be proud of in the Nigerian academic, judicial, constitutional and political history and certainly one that will be remembered in national annals.

While mortality is a human attribute, great men have often immortalised themselves by the sublime dimensions of their works in the service of mankind. Such is the achievement of Justice Tobi that has eminently swelled the rank of great men who have left indelible imprints in their chosen professions. Though Justice Niki Tobi, a devout Christian and family man, has passed unto glory, his works stand as a befitting tribute to his life and calling. In the words of Christopher Okigbo, the great poet ‘after we had formed, then only the forms were formed and all the forms were formed after our forming.’ It is my personal belief that every man of purpose must not only know but live his purpose, and in a world full of garbed tributes, he faithfully writes his own tribute that no one else can ever rewrite for him.

Justice Niki Tobi knew his purpose, lived his purpose and wrote his own tribute in his own native handwriting that speaks eloquently after him. He was one of the remarkable personalities I have known. I hereby submit, May it please your Lordship, May you enter your eternal rest at the bosom of the Lord Jesus.

Professor Adebambo Adewopo is Principal Partner at L&A Legal Consultants.

12.07.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

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

Dear Counsel, It has become necessary to write to you to inquire about this important issue.

My neighbour, a recently retired school teacher has been running a poultry at the back of his house. Apart from the noise that the chickens make, there is a very offensive odour coming from the poultry farm which we have been enduring for almost a year now.

I got worried when I started seeing some market women purchasing the chickens last week and when I discussed it with my other neighbours; someone mentioned to our surprise that he had never seen any veterinarian visit the poultry farm and therefore no one is sure about the health of the chickens. I had to persuade my wife to return the chicken she bought from the poultry farm. We all started wondering whether there are any laws or regulations guiding poultry farms and because we are not sure of this, none of us has been able to approach my neighbour regarding the issue. What should we do in this situation?

N.O., Ogolonto, Ikorodu, Lagos State.

Dear N.O, It is absolutely necessary to ensure that your health and that of your family is protected all times.

Special Lawyer Treatment A lawyer dies and goes to the end of a long line at the Pearly Gates. To his surprise, St. Peter leaves his desk, walks over and greets him warmly. An angel takes the lawyer by the hand, guides him to the front of the line and settles him into a comfortable chair.

The lawyer says, "I appreciate all this attention, but what makes me so special?"

St. Peter replies, "Well, we've added up all the hours that you billed your clients, and by my calculation, you must be about 193 years old!"

The situation you are currently faced with would most likely endanger your health if steps are not taken immediately to ensure that your neighbour complies with all regulations with regard to keeping and operating the poultry.

The Animal Diseases (Control) Act, Laws of the Federation, 2004 provides for the control of hatcheries and poultry farms. Section 18(1) of the Act says ‘Any person who establishes or intends to establish a hatchery or a poultry farm of up to 250 birds shall be required to obtain a license for its establishment from the Chief Veterinary Officer of the State in which the hatchery or farm is situate.

(2) All existing hatcheries and poultry farms of up to 250 birds shall be required to be registered within six months of the coming into effect of this Act. (3) The owner of a hatchery or poultry farm shall manage and maintain such hatchery and poultry farm in a reasonable hygienic condition and comply with all vaccination measures in force in the State so as to prevent the outbreak and spread of disease.’

Although you did not state the size of the poultry, it is clearly unlawful to operate poultry without the necessary license and approval from the right authority. You are therefore advised to draw the attention of the poultry owner to these demands and ensure that he complies with them be getting the Chief Veterinary Officer of Lagos State to come and inspect the place and ensure compliance. Anything outside of this is a violation of the law and it attracts sanctions.

Legislative Supremacy, Nigeria’s 1999 Constitution Adedamola Aderemi

R

ecent events have again thrust into the public domain the issue of the frame work for the election of leaders of the National Assembly.

One intends to look at the matter and examine the issues by considering the election of the Senate President and his Deputy without recourse to the decision of the majority party as to its preferred candidates for the two posts.

The constitutional and legal framework for the election of the Deputy Senate President (and the Senate President) can be found in the Constitution of the Federal Republic of Nigeria 1999 and the Standing Order Rules of the Senate, to the extent that they are not inconsistent with the Constitution.

The applicable sections of the Constitution are: (a) Section 1(1) which provides for the supremacy of the Constitution over all other laws including statutory instruments. See Abacha v Fawehinmi (2000) 6 NWLR (Pt. 660) 228; NNPC v FAMFA OIL LTD [2012] 5-7 MSC (Pt. 1) 1; A-G Abia v A-G Federation (2006) 16 NWLR (Pt. 1005) 265. (b) Section 1(3) which provides for the invalidity of any law which is inconsistent with the Constitution. See OGAGA v UMOKORO & ORS (2011) 18 NWLR (Pt. 1279) 924. (c) Section 13 of the Constitution which provides that it shall be the duty of all persons exercising legislative, executive or judicial powers to conform to, observe or apply the provisions of the Chapter of the Constitution relating to Fundamental Objectives and Directives of State Principles. (d) Section 54(1) which provides that the quorum of the Senate shall be one third of all members of the Senate. (e) Sections 56(1) & (2) which, combined, provide that any question proposed for decision in the Senate or the House of Representatives shall be determined by a simple majority of the members present and voting unless otherwise provided by the Constitution. (f) Section 60 which provides that the Senate shall have power to regulate its own procedure, including the procedure for summoning and recess of the House. (This of course includes the power to make Standing Orders to govern their procedure).

Election of Senate President and Deputy Senate President 1. Issue is taken with the election of the Senate President

because he was not the preferred choice of the Party. It is said that he should not have put himself forward as candidate and that the Party’s choice should have been allowed to prevail.

2. A combined reading of section 50(1)(a) and 52(1) shows that the 1999 Constitution contemplated the possibility of an election into the office of Senate President and Deputy Senate President. Cf S.T.B. PLC v OLUSOLA (2008) 1 NWLR (Pt. 1069) 561 where the Supreme Court confirmed a long line of authorities that in interpreting the Constitution words must be given their ordinary meaning where they are clear and unambiguous unless absurdity ensues. The unambiguous words of these provisions clearly demonstrate that even a sole candidate is subject to nomination and election, albeit that such a sole candidate may be returned unopposed.

3. What is most important to bear in mind is that the section presupposes an election by the members of the Senate alone and from amongst the members of the Senate alone without the interference or influence of any outside body. The operative words in this regard can be taken from section 50(1)(a) which provides for election “by the members of that House from amongst themselves”.

4. It is clear that constitutionally only the Members of the Senate have the power and the right to elect their President and Deputy President and the whole Senate is the caucus for this election. Accordingly, any shadow or mock election to select a candidate which does not potentially encompass all the Senators of the majority and opposition Parties will be illegal, null and void as being contrary to the constitutionally laid down procedure. This is simply because such an election will not be an election “from among themselves” (indeed it would amount to an unconstitutional limitation on the right of the senators to elect from amongst themselves as other opposition Senators who should participate in such an election are by necessity excluded from voting, or indeed being candidates, not being members of the political party conducting mock or shadow elections.

5. Indeed, by the combination of the provisions of sections 50(1)(a) and 52(1) it is possible for the majority party not to be able to elect the President of the Senate or his Deputy.

The election is one from amongst the members and not one from amongst members of the ruling party or indeed by the ruling party.

6. Constitutionally, it is, therefore, possible and permissible for the candidate that occupies either of these positions to be from a minority party if that is how the majority of the Senators present and voting decide to vote.

7. There is no place for the Party or a section of the Party (unless of course it is the party’s representatives in the Senate) in the election of these constitutionally named principal officers of the Senate.

8. Indeed, if it was felt that a majority party should produce these named principal officers, the Constitution would have expressly said so or by implication made reference to such a power as residing in such a majority party.

9. There is another equally fundamental reason why the Party has no role in the election of these two principal officers of the Senate. To do so would be to interfere with the sanctity of the Senate which the Constitution guarantees and this would amount to unconstitutional interference. Even the Executive represented by the President cannot interfere.

10. The Senate is an autonomous body and its members represent their people first and foremost and not the Party.

The Constitution ensures this autonomy with regard to the executive and the judiciary which are constitutional bodies with powers of government. Clearly political parties which have no such constitutional status cannot acquire powers over and beyond those of constitutional bodies.

11. There is no morality in law and most importantly, there is no morality in the application of clear provisions of the Constitution to reflect moral views as against constitutional mandates.

The Method of Electing the Senate President and Deputy Senate President 12. The Constitution does not expressly prescribe the method by which either of these officers is to be chosen.

13. However, what is instructive is that the Constitution expressly provides that they are to be chosen before the inauguration of the Senate.

14. The Constitution by implication provides that the conduct of the elections into these principal positions shall be conducted by the Clerk of the National Assembly since prior to the Senators themselves being sworn in, he is the only person to whom a Proclamation of the first session can be directed pursuant to section 64(3).

15. The effect is that it is the Clerk of the National Assembly who has the power to conduct the elections and the manner in which he chooses to conduct the elections is clearly at his discretion. Incidentally, the manner chosen, secret ballot, is adopted by most western democracies in the selection of their principal officers. The attached document shows some CONTINUED ON PAGE 16

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12.07.2016

Rethinking the Role of Courts and Judges in Supporting Arbitration in Africa Emilia Onyema

A Introduction

rbitrators and judges resolve disputes but in different fora. One acts in a private process, the arbitrators; and the other in a public process, the judge. Both however are in the business of resolving disputes between parties in accordance with the law. They can therefore be said to render complementary services. This paper examines this complementarity between judges and arbitrators in the service they provide to disputants. I will examine the different stages courts/judges become involved in the arbitral process and interrogate the role/function of judges in arbitration and set out the symbiotic nature of these relationships. I will use the terms courts and judges interchangeably. This paper sets in context the discussions on the role of courts in arbitration and how they can better support the arbitral environment in African states, as the theme of this conference.

My presentation will be divided into three sections: Section 1 will outline when courts become involved in arbitration; section 2 will examine the functions of courts in arbitration; and section 3 will examine the symbiotic nature of the relationship between judges and arbitrators.

Identifying the Court In domestic or international arbitration, recourse to a particular national court by the disputing parties may be relevant. Such recourse may happen at different stages of the life span of the arbitration proceedings.

In international arbitration, different factors may connect such arbitration to a particular state or country. It is such connection to a state that implicates the laws and courts of that state in the arbitral reference. Such factors include: the place of the arbitration; the place where enforcement of the arbitral award is sought; the place where the parties have assets; or where a court perceived by a party as being supportive (without any connection to the dispute) is located. Any of these factors will localise the arbitral reference (effectively connect it to that state).

Such connection of the arbitral reference to a state also implicates the application of its laws to regulate the arbitration and the support of its courts. It has long being debated whether all of these factors have equal value or whether there are some factors that are more valuable than others. These have led to different theoretical analysis of such factors in connection with the arbitration. For some commentators the seat of the arbitration has a superior value as the place with the closest connection to the dispute. So for example Article 1(2) of the UNCITRAL Model Law provides in part, “The provisions of this Law, except articles (…) apply only if the place of arbitration is in the territory of this state.” The English Arbitration Act on its part in Section 2 expressly state that, “The provisions of this Part apply where the seat of arbitration is in England …”

This effectively means that any arbitration seated in England is subject to the English Arbitration Act. In contrast to some other jurisdictions such as France, where there is no such localisation of international arbitral references. According to Article 1504 of the French Arbitration Law 2011, “Arbitration is international when international trade interests are at stake”, this definition is very broad.

The contestation between the various theories is evident: the seat theorists basically contend that since the seat has the closest connection to any arbitration, the law of the seat (and by reference the regulatory powers of its courts) should have an overriding interest in such arbitration as compared to other laws. The autonomous theorists on their part do not see why the seat should

be relevant least of all, enjoy an overriding interest in the arbitration, simply because it was chosen by or for the parties. They argue that international arbitration should enjoy an autonomous existence, so completely emancipated from the domination of the state. For example, the French Cour de Cassation in PT Putrabali Adyamulia (Indonesia) v Rena Holding (France) decision of the French SC, First Section, No 05-18053 of 29 June 2007; Rev Arb 2007, 507 noted that: An international arbitral award, which does not belong to any state legal system, is an international decision of justice and its validity must be examined according to the applicable rules of the country where its recognition and enforcement are sought.

The proponents of the delocalisation theory on their part agree that arbitration may be connected to a particular seat but this should be the place where enforcement of the award is sought and not necessarily the seat of the arbitration. These theories are interesting and they help us think more deeply about the nature of arbitration and its relationship with the courts.

For purposes of this discourse, in domestic arbitration, the national courts of the state will be the relevant courts while for international arbitration references, generally the relevant laws and courts are those of the seat of arbitration (if any), and the place where assets are located (primarily for interim measures applications and enforcement of awards). The particular courts with jurisdiction over international arbitration are generally clearly defined under most national laws.

Functions of Courts in Arbitration Having identified the state whose law and courts may be engaged in arbitration, this section examines the role such courts may be requested to play in the reference.

The role of the court in arbitration can conveniently be divided into three phases: before the formation of the arbitral tribunal (A); after the formation of the arbitral tribunal (B); and after the conclusion of the arbitration (C).

Before the formation of the Arbitral Tribunal The arbitral tribunal cannot make any decision regarding the dispute between the parties or any ancillary matters until it has been constituted. Therefore any assistance that one or all the parties may require prior to the constitution of the arbitral tribunal, will need to be sought from either the arbitration institution or a national court. Arbitration Rules of some institutions empower the institution (or a pre-arbitral referee or emergency arbitrator or special measures arbitrator) to decide certain matters, while national laws empower national courts to decide other matters.

Examples include: Where one party seeks an anti-suit injunction, a national court will grant such an order (Article II.3 New York Convention; Article 8 Model Law; Section 6 EAA; Article 1448 French Law; Section 4 Nigerian ACA; Section 6 Ghana ADR Act). All these laws require their courts to determine the question of whether to refer parties to arbitration where there is an arbitration agreement covering the dispute before the court.

To appoint arbitrators: this function by national courts remains relevant under ad hoc references where the parties have not nominated an appointing authority. The modern trend is to leave this task to an appointing authority or arbitration institution.

Extension of time to take various steps, for example commence the arbitration.

Interim measures: this function can be performed by national courts or an emergency arbitrator (or any of its variants mentioned above).

It is evident that all of these functions go to the preservation of the subject matter of the dispute for determination of the arbitral tribunal. It can therefore be asserted that at this stage, the role of the court (or the arbitration institution) is to ensure the

constitution of the arbitral tribunal so the arbitrators can effectively enter into the reference and determine the dispute. This is a supportive role for the courts.

After the Formation of the Arbitral Tribunal Once the arbitral tribunal is in place, arbitration rules and laws empower the tribunal to manage the reference and take effective control of the dispute, hear the parties and determine the dispute submitted to it. The arbitral tribunal lacks coercive powers so that courts may render support to the arbitral tribunal by enforcing its orders. Such orders include: granting interim measures of protection, summoning witnesses, and gathering evidence.

Where an arbitrator is challenged, arbitration rules and laws empower the arbitration institution or appointing authority to decide the challenge application in the first instance with final recourse to the courts.

The role of the court at this phase is very limited and primarily focused on courts providing enforcement support for the orders of the arbitral tribunal. It can be asserted that at this phase of the arbitral reference, courts are not expected to engage with the arbitral reference. This is understandable considering that there is a decision maker empowered by the parties (with the full support or ‘permission’ of the state) in place to make such decisions as are required or necessary in the arbitration.

After the Conclusion of the Arbitration The arbitral tribunal becomes functus officio after they have published their award and the arbitrators have been paid for their services. Their role in the arbitration effectively comes to an end and the tribunal disbands. Arbitration rules and laws generally provide for the opportunity for a reconstitution of the arbitral tribunal to make additional awards, interpret or correct their award. Where such post award services are not required (or where the original tribunal can no longer be reconstituted), at this stage there is no longer an arbitral tribunal in place to make any decisions for the parties.

So effectively the position reverts back to the arbitral tribunal pre-formation phase (2A above). The parties then revert back to the courts. These may be different courts from the courts under 2A because the relevant courts at this stage will depend on where the losing party has assets if enforcement of the award is sought or the seat of the arbitration if the award is being pro-actively challenged.

Application for the recognition and enforcement or challenge of the arbitral award can only be made to a national court which is empowered to decide such matters.

At this stage, national courts get the opportunity to give effect to the decision of the arbitral tribunal or reject it; but such rejection must be on very limited grounds.

This limitation of the grounds of challenge is another evidence of the limited role courts play in arbitration and points directly to the nature of the relationship between arbitration and litigation, arbitrators and judges in the arbitral process.

Symbiotic Nature of the Relationship As mentioned above, arbitrators and judges make decisions that are binding on the disputing parties but both operate in different domains with an evident hierarchy of authority. Arbitrators operate in the private domain and are very much subject to judges who act in the public domain (and as a matter of constitutional law, as an emanation of the state). Thus, though the law recognises the decision arbitrators and judges make as binding, the same law provide for this hierarchy by empowering national courts to recognise and enforce the same decisions made by the arbitral tribunal or annul it. Evidently there is no question of competition between these two processes.

Most national laws clearly demarcate the spheres of influence of judges and arbitrators. These spheres as shown under section 2 above are dedicated to supporting each other. It is therefore argued that national court judges and arbitrators, in the same manner as the processes of litigation and arbitration, can co-exist symbiotically, as they each understand the functions of the other in the dispute resolution provision service. Arbitrators do not have any powers to encroach on the functions of the judges and do not. This is primarily because their powers are circumscribed by the agreement of the parties (as the source of the powers of the arbitrator). It is posited that one reason for the interventionist attitude from some members of the judiciary is the lack of a clear understanding of the role and functions of arbitrators in the dispute resolution process and how arbitrators add value to the task performed by national court judges.

Conclusion An appreciation of this symbiotic nature of the relationship between judges and arbitrators, and between arbitration and litigation, will assist judges in their decision making in arbitration–related matters: to seek to support the arbitral reference within the purview of the law applicable to the reference and give due deference to the decisions of the arbitral tribunal. Such co-existence will bring to fruition the intention of the legislators in the African states as reflected in their arbitration laws. It will also instil confidence in the commercial community (both domestic and international) that their choice to arbitrate their disputes will be respected by the state through the judiciary.

It will reduce the workload of judges who, at the same time, retain a watchful eye over the arbitral process to ensure the basic tenets of procedural fairness and their laws (including public policy) are not breached and parties left without adequate redress. Finally it will ensure that the perception of interventionist judiciaries across the continent (and the attendant impact of such perception) begins to shift away from intervention to support.

Dr. Emilia Onyema delivered this paper at the SOAS Arbitration in Africa conference co-hosted by the Lagos Court of Arbitration International Centre for Arbitration and ADR from 22-24 June 2016.

12.07.2016

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THE CANVASS MICHAEL NUMA

michaelnuma@thecanvasscolumn.com

Anti-Arbitration Injunctions and Its Effects Thereto

A

rbitration is a distinct dispute resolution process in which the regular courts have very minimal intervention over. The UNCITRAL Model Law expressly provides in Section 5 that “no court shall intervene except where so provided in this law”. The backlash between these two mechanisms of dispute resolution has resulted in some measures to ensure that the two processes are severed and can run side-by-side without unnecessary interference. The general trend is towards limiting courts’ intervention to those cases where it is either necessary to support the arbitration process or where it is required by public policy. Howbeit, regardless of the attempts to free arbitration of all interventions by the courts, until the arbitral tribunal gains the coercive constitutional powers like the courts, arbitration remains ultimately dependent on the courts for assistance before, during and after proceedings. The Provision of Section 5 of the Model Law has been incorporated into Section 34 of the Arbitration and Conciliation Act (ACA) Cap 18 LFN. This provision in my opinion was intended to have an international outlook. This position is evident in the commencement clause of the Act which provides thus “An Act to provide a unified legal framework for the fair and efficient settlement of commercial disputes by arbitration and conciliation and to make applicable the convention in the recognition and Enforcement of Arbitral Awards (New York Convention) to any award made in Nigeria or any other contracting state arising out of international commercial arbitration”.

Pursuant to Article II(3) of the New York Convention which is also incorporated into the ACA requires the courts of a contracting state when seized of an action in matter in respect of which the parties have made an arbitration agreement, refer the parties to arbitration. Furthermore, pursuant to sSection 34 of the ACA, the courts are only permitted to intervene in arbitration in certain circumstances, including setting aside an arbitral award, staying proceedings, issuing subpoenas etc, but not a substantial interference with the arbitration proceedings that will halt the process such as anti-arbitration injunctions. Recent events with respect to the interpretation of the certain provision of ACA by the Nigerian Courts and arbitral tribunals including foreign arbitrators relying on Nigerian authorities have sprang up so much uncertainty as to whether the ACA is still fit for purpose giving the evolution of the process globally and the appreciable progress recorded in-country. These provisions includes inter alia party representation (whether domestic or international, ad hoc or institutional arbitration), arbitrability of certain disputes which has resulted to several pending litigation in court such as SNEPCO v FIRS in CA/A/208/2012 now reserved for judgment, more worrisome is the issue of Anti-arbitration injunction.

Anti-arbitration injunctions are generally only granted where it is absolutely clear that the arbitration proceedings have been wrongly brought. By contrast, these measures should not be granted where it is simply more convenient to hear the case in court particularly in instances where third parties can be joined or the tribunal does not have the power to dispose of all issues in dispute.

In such cases, the parties are bound by the arbitration agreement and the court should not interfere with it. What is more obtainable are injunctions intended to aid the arbitration process by restraining proceedings in court in breach of a valid arbitration agreement.

Such injunctions are typical where there are concurrent court proceedings in another court as such proceedings could frustrate the ongoing arbitration. A judgment rendered may prevent the enforcement of the final award of the tribunal if its findings are irreconcilable with the award. Section 34 of ACA provides a context to the extent of court intervention. However, it has been contended on the flipside that the provision in itself tends to be seen as an ouster clause to the powers of the court under section 6(6)(C) of the Constitution. It has been contended also that there is a distinction between the general powers of the court in relation to arbitration as opposed to the specific powers of the court to issue injunctive orders. The attitude of the court has been simply to stay clear of the substantive process as opposed to those earlier mentioned. This was evident in the earlier cases of our superior courts in SAVOIA LTD v SONUBI (2000) 12 NWLR pt 682 pg 539 at 551 para E-H where the Supreme Court held in the passing “ that the court has no jurisdiction to determine any matter, the subject of an arbitration proceedings”, ARBICO (NIG) LTD v NMT LTD (2002) 15 NWLR (Pt 789) 1 where such indications were reiterated. Subsequently in the case of STATOIL (NIG) LTD v N.N.P.C (2013) 14 NWLR pt 1373 Court of Appeal Lagos Division held categorically that “the intention of the legislature in making the provision in section 34 of the ACA is to protect the mechanism of arbitration and to prevent courts from having direct control over arbitral proceedings or to prevent the courts from intervening in arbitral proceedings outside the circumstances specified in the Act. In other words, the intention of the legislature is to make arbitral proceedings an alternative to adjudication before the courts, and not an extension of court proceedings. In the instance case the issuance of an ex-parte order of interim injunction was not permitted under the ACA”.

This position has been the law only until recently, when an opportunity presented itself to the same Lagos Division of the Court of Appeal in CA/L/331/2015 SPDC v CRESTAR delivered on the 21st day of December 2015.

Wherein the Court declined to be guided by the afore-cited decisions. The court held that with respect to section 34 of the ACA, it

is important to note that the section is only applicable to matters which are “governed by the Act”, such that if it is found in any proceeding that the particular facts and circumstances are not within the purview of the ACA, the provisions of section 34 cannot apply with full force. In reaching this decision the court was guided by Emmanuel Gaillard in his text, ‘Anti-Suit Injunctions in International Arbitration’, Juris Publishing Inc., 2005, p. 111 where he stated that: “…It is important to point out that Article 5 of the Model Law, is only applicable if the arbitration is taking place where judicial intervention is sought; the prohibition on judicial intervention not provided for in the Model Law is therefore not applicable in connection with an arbitration taking place abroad or an arbitration the place of which has yet to be determined. This limit to the scope of Article 5…matters, because Courts in many common law jurisdictions construe their injunctive powers as also allowing them to enjoin foreign arbitral proceedings.” It is pertinent to state that the proceedings which was then sought to be restrained by the applicant in Crestar was an international arbitration with a seat in London with regards to several disputes arising from the SPA between the parties on both sides of the SPA for the Shell JV to assign its participating interest in Oil Mining Lease 25 (OML 25) to Crestar and PSC. On that premise, the Court then questioned whether the London arbitration in issue was governed by the provisions of Section 34 of the ACA, such that the Court had no jurisdiction to make an Order of injunction being sought by the applicant.

In resolving the issue, the Court identified the fact that by virtue of the provisions of section 57(2)(b)(i) of the ACA, the arbitration in question in this case was an international arbitration, due to the fact that the place of arbitration was outside Nigeria, while the parties have their various places of business here. As a result, the Court held that, to the extent that the arbitration in question is an international arbitration, thus section 34 of the ACA and the judicial interpretation given to it in the cases of STATOIL AGIP v NNPC (supra) are inapplicable in this respect. It is the writer’s opinion that this development has far reaching effects and will create so much discomfort in the arbitration community. There

is no gainsaying the fact that the Nigerian courts have enormous powers to restrain vexatious and oppressive proceedings owing to the doctrine of Lis Pendens. Likewise, the English Court will not hesitate to grant an injunction to restrain a party from continuing with parallel proceedings in breach of a valid arbitration clause in situations where damages are manifestly an inadequate remedy. This was the position taken by the Court of Appeal in Aggeliki Charris Compania Maritima Pagnan (The Angelic Grace) (1995) 1 Lloyds Rep 87, Albeit so, it is clear that the court does not use its discretion sparingly, certain factors must be considered which will be mentioned in the subsequent paragraph of this article.

The writer concedes that understanding the cultural matrix of a contract resulting to the dispute up for resolution is essential in interpreting same, which was one of the justification given in the Crestar decision.

However, the world being a global village has largely changed this perception. Courts have moved from strong skepticism resulting in extensive judicial intervention in foreign arbitration process or the non-enforcement of arbitration agreements to a position in favour of arbitration giving priority to party autonomy. The English law evolution on this subject matter is a typical example. The arbitration Act of 1950 vested the court with the power to require referral of any question of law thought ought to be decided by it. The case stated procedure could not be excluded.

In light of strong international criticism the special case procedure was significantly curtailed by the Arbitration Act 1979, as a consequence any agreement of the parties on institutional rules, which contained a waiver of the right judicial recourse, such as the ICC or LCIA rules led to an exclusion of the case stated procedure. See the case of ANTAIOS COMPANIA NAVIERA SA v SALEN REDERIERNA AB (1984) 2 Lloyd’s Rep 235, 237. The Arbitration Act 1996 completely abolished the special case stated procedure. It allows appeal on questions of English law in very limited circumstances.

One of the policies considered by the Court in the Crestar decision under review was the issue of illegality of the arbitration proceedings which was commenced by a foreign law firm, CLIFFORD CHANCE LLP contrary to Section 51(1) of the Local Content Act, which provides exclusive legal service to Nigerian lawyers in Nigeria oil and gas sector. In reaching its findings, the court considered the fact that the London arbitration was commenced during the pendency of the suit leading to the instant appeal (unlike the Statoil Case) and as at the time of the application for injunction the arbitral proceeding was at its preliminary stage, thereby considered it as vexatious, oppressive and unconscionable. This no doubt satisfies one of the factors courts consider in granting an injunction of this nature. See also the Australia decision in CSR Ltd v NZI (1994) 36 NSWLR, 138. However the position is slightly different in the US as the application is stricter, See the case of BHP PETROLEUM v BAER (1998) where the court referred to the test of applicable for anti-suit injunctions in support of court proceedings and considered it to be relevant also for injunctions in support of arbitration.

Injunctions by their very nature are equitable discretionary remedies within the exclusive domain of the court, the writer will posit that the most consistent and relevant standard to be met is that of irreparable harm. My Follow-up question is that, in the Crestar decision what was the irreparable harm that compensation could not adequately remedy.

This decision has obviously opened new vistas to our jurisprudence, and we await the Apex Court’s reasoning.

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12.07.2016

Gaps and Challenges in the Electoral Process

Festus Okoye

party or its State Executive Committee that has the power to fix dates for congresses for the election of Senatorial, House of Representatives and State Assembly candidates as the Act only specifies that it is the National Executive Committee of the Party that fixes the dates for Presidential and Governorship Party primaries. Section 87 (4) of the Act should also be amended to accommodate the appeals process in the constitution of political parties.

S

ome of the participants that attended the June 6, 2016 Summit on Elections organised by the Senate Committee on INEC in collaboration with the Policy and Legal Advocacy Centre (PLAC) felt genuinely embarrassed and scandalised at the revelation that there exists in our statute books an Act known as the Electoral (Amendment) Act, 2015.

Apparently, the former President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan GCFR assented to the Electoral (Amendment) Bill, 2015 on the 26th day of March, 2015 and simply kept it in the closet leaving Nigerians to believe that the extant Act remained the Electoral Act (2010) as amended.

Nigerians and indeed the Independent National Electoral Commission went into the 2015 general elections oblivious of the fact that there is an Act that further amends the Electoral Act, 2010 to, among other things, provide for the tenure of the office of the Secretary, increase the number of days for application for and issuance of a duplicate voter’s card, determine voting procedure as well as addressing other related issues to facilitate electioneering in Nigeria.

Apparently, this bizarre and unacceptable approach to law making and assenting to laws and keeping them in the closet informed the decision of the Senate Committee on INEC to start the process of amending the Electoral Act before the commencement of political campaigns and to give the Independent National Electoral Commission sufficient time to familiarise themselves with the document and plan well for the 2019 general elections.

While it is acceptable to amend the laws when situations demand, we must try to find an acceptable balance between respect and fidelity to the law, the Constitution and our democratic institutions and addictive entrapment to constitutional and electoral design. It is true that the framers of our laws and constitution are human and are not “vested with the omnipotence of God or vested with the ability to take care of all possible eventualities” we must consciously banish the ghost of obsession with constitutional and electoral design. This obsession is anchored, propelled and derivable from impatience and lack of fidelity to the law, the constitution and the judicial process. The moment we encounter a challenge and or a road block or lacuna or gap in our constitutional and electoral framework, rather than deal with the issues and challenges within the ambit of our democratic institutions, we run to alter the law and the constitution and sometimes create more complications in the process.

We must therefore deal with concrete and fundamental issues that require amendment or fill in gaps and lacuna that emerged from our practice of constitutional democracy and allow the judiciary and other democratic institutions to interpret the laws.

However, I am of the view that there are ten concrete issues that the National Assembly should consider for possible amendment and leave other issues to the interpretative jurisdiction of the courts.

Timelines in Pre-Election Disputes There is no time line for the determination of pre-election disputes and this has created a situation where pre-elections disputes outlive the life of some administrations. The National Assembly should amend sections 31-38 and 78-102 of the Electoral (Amendment) Act, 2015 to make it mandatory for pre-election matters filed at the Federal or State High Courts to be heard and determined within 90 days from the date of filing of the action while appeals arising from pre-election matters should be heard and determined within 60 days from the date of filing the appeal at the Court of Appeal or the Supreme Court. Appeals from judgments in pre-election matters to the Court of Appeal or the Supreme Court should be filed within 21 days from the date the judgment of the lower court is delivered while appeals

Analogue and Information and Communications Technology The bulk of the provisions of the Electoral (Amendment) Act and the accompanying forms are analogue and manually propelled and delivered. The Act should be designed and reworked in such a way that it remains flexible to changing dynamics in Information and Communications Technology. The Independent National Electoral Commission should also be given some discretion to determine at what point to introduce and or use technology in our electoral process. To this end, the National Assembly should delete section 52(2) of the Act which prohibits the use of electronic voting machines in our electoral process and section 49 of the Act and other ancillary provisions should be amended to specifically accommodate the use of Smart Card Readers in our electoral process.

INEC Chairman, Professor Mahmood Yakubu

arising from specific challenges relating to State and National Assembly matters should terminate at the Court of Appeal Time for Presenting Election Petitions Section 134 of the Electoral (Amendment) Act, 2015 and section 285 of the Constitution prescribes timelines for the presentation and determination of election petitions. The Supreme Court and other subordinate courts have interpreted the timelines strictly insisting that they are cast in stone. It is important to allow the courts a small window of discretion in special circumstances not envisaged by the law and the constitution. To this end, it is imperative to amend section 285 of the Constitution and section 134 of the Act to increase the time for the filing of Presidential and Governorship Election Petitions (considering the number of polling units involved in both petitions) from 21 days to 30 days while National and State Assembly Elections should remain within the timeframe of 21 days. It is also important for the hearing of election petitions to be concluded within 180 days from the date of the filing of the Petition and there should be a further period of 14 days from the date of adoption of final addresses for the delivery of judgment to enable the hearing of petitions to be separated from the delivery of judgements. A proviso should also be inserted to section 285(6) and (7) of the Constitution and section 134 of the Electoral Act giving Judges the discretion to extend the time within which to conclude election petitions and the disposal of appeals arising from election petitions in deserving cases provided that such extension should not exceed a period of 7 days.

Party Primaries The bulk of the cases filed in the conventional courts and in the Election Tribunals for the 2015 general elections arose from challenges to the conduct of party primary elections. The conduct of party primary elections is still opaque and devoid of transparency and certainty. The National Assembly should amend section 87 of the Act to confer locus standi on members of a political party who have taken steps to fulfil the conditions set out in the party’s constitution for contesting party primary elections but have been excluded from contesting the said primary.

It is also imperative to amend section 87(4)(c)(i) of the Act to specify whether it is the National Executive Committee of a

LEGISLATIVE SUPREMACY, NIGERIA’S 1999 CONSTITUTION of these countries.

16. The reason for the conclusion above is that section 60 which, provides for making of the rules of the different Houses of the National Assembly is made subject to the other provisions of the Constitution including of course the provision dealing with the initial election of the two principal officers. Accordingly, neither chamber of the National Assembly can, by its rules, prescribe a procedure for election of members to the office of Senate President or Speaker of the House respectively that is substantially different to that which is provided in Section 50(1) and (2). This because any act or subordinate legislation which is inconsistent with the constitution is void to the extent of the inconsistency. See Abacha v. Fawehinimi (supra).

17. The clear implication of section 60 of the Constitution is thus that each Senate is empowered to adopt its own rules

Internal Displacement and Diaspora Voting The National Assembly should amend the Electoral(Amendment) Act to give the Independent National Electoral Commission the power to take measures and ensure that proactive arrangements are made for the registration and voting by Internally Displaced Persons and persons in the Diaspora.

Death of a Candidate after the Commencement of Poll The National Assembly should amend section 36(1) of the Electoral (Amendment) Act by inserting after the existing subsection 1 a new subsection (2) to the effect that If after the commencement of poll and before the declaration of results a nominated candidate dies, the Chief National Electoral Commissioner or the Resident Electoral Commissioner shall, being satisfied of the fact of the death proceed with the election and allow the Political Party whose candidate died a period of 7 days to make a substitution and proceed as if the candidate was the one originally nominated by the party.

The Prosecution of Electoral Offenders Due to our treatment of electoral offenders and the seeming lack of political will and legal might to prosecute them, impunity has continued to recycle itself resulting in individuals, groups and organisations holding the electoral process to ransom. The National Assembly should as a matter of urgency pass the Electoral Offences Commission Bill to deal specifically with the arrest and prosecution of electoral offenders.

Additional Functions of the Commission Section 2 of the Electoral (Amendment) Act should be amended to transfer the power to conduct civic and voter education to the National Orientation Agency and a re-established Centre for Democratic Studies.

Prohibition of Certain Conducts Sections 94, 95 and other related provisions involving the monitoring and tracking of hate speech and campaigning in prohibited places should be amended and the functions transferred to the National Human Rights Commission.

Definition of Terms The National Assembly should amend section 156 of the Electoral Act 2010 to define terms, including “by-election”, “nullified election”, “fresh election”, “starting afresh”, a “rerun”, and “re-start”.

Festus Okoye ESQ is a Constitutional Lawyer & Former National Publicity Secretary of the NBA.

CONTINUED FROM PAGE 13

and procedure at the outset following its inauguration. The rules of the preceding Senate are merely advisory and not binding, having lapsed by effluxion of time. Accordingly the Clerk is not bound to adopt them in the course of the election of the initial principal officers.

18. In essence it is clear that one Senate cannot bind the next by rules made by that prior Senate. In this regard it is noteworthy that section 64(3) refers to a Proclamation issued for the “first” Session of the dissolved National Assembly rather than of the “next” session, confirming that once dissolved that particular Senate ends apart from other consequential issues that may arise therefrom.

19. Even assuming, for the sake of argument, that the rules of the previous Senate remain extant, the Clerk of the National Assembly is still not bound to use those rules for the conduct of the initial election into the office of

President or Deputy President of the Senate. His mandate for this task is not derived from those rules but from the Constitution. Accordingly, the rules cannot fetter the manner in which he chooses to exercise the power granted to him by the Constitution which naturally prevails over the rules.

20. Accordingly, the election of the Deputy Senate President by the method determined by the Clerk of the National Assembly is legitimate and constitutional, so long as he has not acted capriciously or arbitrarily, (see Stitch v A-G Federation (1986) NWLR (Pt. 46) 1007) notwithstanding that it did not comply with the provisions of the Standing Order Rules 2011, which rules had in any event expired by effluxion of time and were thus available for guidance only.

Ademola Aderemi, a constitutional lawyer writes from Abuja

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T H I S D AY • TUESDAY, JULY 12, 2016

POLITICS

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

EXECUTIVE BRIEFING

The Outrageous Pension Laws The current financial challenges being experienced by a majority of state governments have called to question, the desirability of the pension laws enacted by state assemblies to maintain the lifestyles of former governors, writes Davidson Iriekpen

I

t is no longer news that state governments across the country have been going through tough times, financially. Since the crash in the price of crude oil last year, their allocations from the Federation Account have drastically reduced, leading to their inability to pay workers’ salaries or embark on infrastructural projects. Apart from their numerous overdrafts from banks to enable them cope with the day-to-day governance, the federal government on two occasions had come to their rescue through bailouts.

This ugly situation has therefore thrown up a debate on whether the outrageous amounts that state governments are spending in the payment of pension to their former governors are justifiable under the current realities. The debate was accentuated by the fact that a majority of these governors are currently either senators or ministers, who are also drawing salaries from public purse.

A majority of the nation’s 36 state Houses of Assembly has laws which give generous pension entitlements to governors, which in many cases provide 100 per cent pay for the incumbent governors buildings, generous medical allowances for them and their family members and annual holiday provisions, all of which are to last for life. Provisions in the pension allowances are also made for staff, security and vehicles that are renewable every three or four years.

As at the last count, there were 21 former governors and deputies in the Senate and President Muhammadu Buhari’s cabinet. The former governors now senators are Bukola Saraki (Kwara), Rabiu Musa Kwankwaso (Kano), Kabiru Gaya (Kano), Godswill Akpabio (Akwa Ibom), Theodore Orji (Abia), Abdullahi Adamu (Nasarawa), Sam Egwu (Ebonyi), Shaaba Lafiagi (Kwara), Joshua Dariye (Plateau) and Jonah Jang (Plateau). Others are Aliyu Magatakarda Wamakko (Sokoto), Ahmed Sani Yarima (Zamfara), Danjuma Goje (Gombe), Bukar Abba Ibrahim (Yobe), Adamu Aliero (Kebbi), George Akume (Benue) and Isiaka Adeleke (Osun).

Former deputy governors in the Senate include Ms Biodun Olujimi (Ekiti) and Enyinaya Harcourt Abaribe (Abia) while Danladi Abubakar Sani was the acting governor of Taraba State.

Former governors now ministers are Rotimi Amaechi (Rivers), Kayode Fayemi (Ekiti), Chris Ngige (Anambra) and Babatunde Fashola (Lagos).

While the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) had approved the payment of 300 per cent basic salary as severance allowances for political office holders on leaving office, the various state Houses of Assembly – all in the name of running a federal system of government – have gone ahead to approve a wide range of entitlements for exgovernors and their deputies.

Though the Code of Conduct Bureau (CCB) Act does not prohibit the former governors from drawing dual remuneration simultaneously, there are concerns on the financial implications on the states. Only recently, President Buhari said 27 states were struggling to pay salaries despite collecting over a trillion naira from the federal government as bailouts.

According to a Lagos Pension Law approved by former governor Bola Tinubu in 2007, a former governor will enjoy the following benefits for life: Two houses, one in Lagos and another in Abuja. (Property experts estimates such a house in Lagos to cost N500 million and Abuja N700 million.)

Others are six brand new cars replaceable every three years; furniture allowance of 300 per cent of annual salary to be paid every two years, and close to N2.5 million as pension (about N30 million pension annually). He will also enjoy security detail, free medicals including for

Governor Abdulaziz Yari of Zamfara State and Chairman, Nigeria Governors Forum

his immediate families. Other benefits include 10 per cent house maintenance, 30 per cent car maintenance, 10 per cent entertainment, 20 per cent utility, and several domestic staff.

In Rivers, the law provides 100 per cent of annual basic salaries for ex-governor and deputy, one residential house for former governor “anywhere of his choice in Nigeria”; one residential house anywhere in Rivers for the deputy, three cars for the ex-governor every four years; two cars for the deputy every four years. His furniture is 300 per cent of annual basic salary every four years en bloc. House maintenance is 10 per cent of annual basic salary.

This ugly situation has therefore thrown up a debate on whether the outrageous amounts that state governments are spending in the payment of pension to their former governors are justifiable under the current realities.

The debate was accentuated by the fact that a majority of these governors are currently either senators or ministers, who are also drawing salaries from public purse

In Akwa Ibom, the law provides for N200 million annual pay to ex-governors, deputies.

He enjoys a pension for life at a rate equivalent to the salary of the incumbent governor/deputy governor respectively.

A new official car and a utility vehicle every four years; one personal aide and provision of adequate security; a cook, chauffeurs and security guards for the governor at a sum not exceeding N5 million per month and N2.5 million for the deputy governor. There is also a free medical services for governor and spouse at an amount not exceeding N100 million for the governor per annum and N50 million for the deputy governor.

Also, there is a five-bedroom mansion in Abuja and Akwa Ibom and allowance of 300 per cent of annual basic salary for the deputy governor. He takes a furniture allowance of 300 per cent of annual basic salary every four years in addition to severance gratuity.

The Kano State Pension Rights of Governor and Deputy Governor Law 2007 provides for 100 percent of annual basic salaries for former governor and deputy. Furnished and equipped office, as well as a six-bedroom house; “wellfurnished” four-bedroom for deputy, plus an office.

The former governor is also entitled to free medical treatment along with his immediate families within and outside Nigeria, where necessary. It is same for deputy. Two drivers are also for former governor and a driver for his deputy; and personal staff below the rank of a Principal Administrative Officer and a PA not below grade level 10. There is a provision for a 30- day vacation within and outside Nigeria.

In Kwara, the 2010 law gives a former governor two cars and a security car, replaceable every three years, a “well-furnished 5-bedroom duplex,” furniture allowance of 300 per cent of his salary; five personal staff, three SSS, free medical care for the governor and the deputy, 30 per cent of salary for car maintenance, 20 per cent for utility, 10 per cent for entertainment, 10 per cent for house maintenance.

The Zamfara version of the law, signed in 2006, gives former governors pension for life, two personal staff, two vehicles replaceable

every four years, two drivers, free medical for the former governors and deputies and their immediate families in Nigeria or abroad. The law also gives the former governors a four-bedroom house in Zamfara and an office, free telephone and 30 days paid vacation outside Nigeria.

In Sokoto, former governors and deputy governors are to receive N200 million and N180 million respectively being monetisation for other entitlements which include domestic aides, residence and vehicles that could be renewed after every four years.

Section 2 (2) of the Sokoto State Grant of Pension (governor and deputy governor) Law, 2013 states that “The total annual pension to be paid to the governor and deputy governor, shall be at a rate equivalent to the annual total salary of the incumbent governor or deputy governor of the state respectively.”

In Gombe, there is N300 million executive pension benefits for the ex-governor and houses for the former governors. Also, states like Oyo, Edo, and many others equally have these laws that are currently doling out billions to their former governors and deputies.

Investigation by THISDAY revealed that in many of the states, where these laws are operational, the speakers of the Houses of Assembly who presided over the passage of these laws merely did it not because they knew it was the proper thing to do but because of fear of being impeached if they opposed them.

According to the RMAFC, a minister receives an annual basic salary of N2 million, accommodation N4 million, vehicle loan N8 million, furniture allowance N6 million, utility N607, 920, vehicle maintenance N1.5 million, entertainment N911, 880 and leave allowance N202, 640.

He or she also receives N506, 600 for personal assistants, N1.5 million for domestic staff, N303, 960 for newspapers and N6 million as severance gratuity. In addition, he or she is entitled to N35, 000 as duty tour allowance (DTA) per day. For foreign trips, a minister receives $1,000 per day.

For a senator, he or she earns a basic salary of N2,026,400.00, accommodation, motor vehicle loan (400 per cent of their annual basic salary), motor vehicle maintenance allowance (75 per cent of annual basic salary), furniture allowance (300 per cent of their annual basic salary), utilities allowance (30 per cent of their basic salary), and medical allowance.

Other benefits they earn include newspaper allowances, special assistant (between Grade Level 12 and 14), personal assistant, two legislative aides, one senior legislative aide, entertainment allowance, wardrobe allowance, constituency allowance and severance gratuity.

Yet, these are not enough to quench their lust for depleting the common patrimony.

Observers and analysts alike have wondered why a governor in particular or his deputy, who served for just four or eight years as the case may be should enjoy such largess after all they benefited legally and illegally while in office, when those who served for 30 or 35 years do not get a quarter of such benefits in retirement.

Perhaps, what many observers cannot comprehend is why many of the former governors still enjoy huge contracts from the respective states they served.

Recently, a coalition of 40 non-governmental organisation (NGOs) sued the 36 state governors, 36 state assemblies, RMAFC and the Attorney General of the Federation seeking to nullify the various pension laws enacted by some of the 36 States Houses of Assembly. legislatures.

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

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T H I S D AY • TUESDAY, JULY 12, 2016

UPDATE&TRENDING

Clamour for True Federalism Gets Louder Emmanuel Ugwu writes that there is no let up in the current agitation for a restructuring of the country

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he search for the solution to the myriads of problems pulling Nigeria back from attaining nationhood and development has become a jigsaw puzzle. Fitting the pieces together to make a fine complete shape has defied a common approach. The idea for resolving the puzzle is as diverse as the nation’s political, ethnic and religious plurality.

But the solution that has continued to enjoy wide acceptance across all the known divides is true federalism. Indeed the clamour for true federalism continues to increase and reverberate across the country. Unfortunately, this is one sound President Muhammadu Buhari hates to hear given his aversion to the 2014 national conference, which in its report recommended that Nigeria should revert to true federalism.

At the 17th annual convention of the Igbo Youth Movement (IYM) held in Enugu on June 12, several eminent personalities lent their voices to the clamour for true federalism.

With the theme, “Nigeria still in pursuit of true fiscal federalism” the convention offered the speakers the opportunity to add their voices to the already increasing decibel from every part of the country.

Elder statesman and prominent Yoruba leader, Chief Ayo Adebanjo, who described himself as “a consistently consistent federalist” said the foundation for a true federalism was laid for Nigeria as far back as 1954 following the constitutional conference in London, which culminated in the Lyttleton Constitution.

Quoting the late sage, Chief Obafemi Awolowo, who had observed that “Nigeria is not a nation but a geographical expression made up of various ethnic nationalities diverse in language, culture and religion”, Adebanjo said it was fitting for the founding fathers to adopt true federalism as the appropriate form of government and that at independence in 1960, the federal nature of the country was clearly established in the Constitution hence it is a puzzle that the search for true federalism is still elusive.

According to Adebanjo, true federalism was established as the best form of governance among the federating units and it thrived before the military intervention destroyed it. He said there was no reason for the continued delay in reverting to true federalism as the liberty it afforded the federating regions in the first republic to develop at its own pace according to its priority resulted in “healthy rivalry among the regions as they were competitive in initiating various developmental projects in their areas of influence.” The elder statesman concluded that the solution to the ongoing separatist agitations and militancy was for Nigeria to retrace its steps to true federalism. “It is my strong view that to put a stop to the various acts of uprising in the country today, be it the Niger Delta Avengers, MASSOB, IPOB of the new agitation for the state of Biafra, will require a change of our constitution to allow for the restructuring of the country under a truly federal system. Then and only then can we have peace in the country without which there can be no progress.”

As it stands, the right step in the journey back to true federalism appears to have been taken with the 2014 confab. Professor Jerry Gana in his speech titled: “That we may live together in peace,” insisted that “We must return to the path of true federalism”. He said the concentration of so much power at the centre during the military rule has become unwieldy and suffocating hence the rising agitations for self-determination in various parts of the country.

The former Minister of Information said the report of the 2014 national confab if implemented would go a long way to ease the present tensions in the country. “Any serious government would take that report very seriously,” he said, adding that the President and his ruling party (APC) should first of all study the report and go ahead to implement all the acceptable provisions without delay “so that people can live in peace and harmony.”

Fiscal federalism is synonymous with true federalism and that was why a Niger Delta activist, Akio Briggs dug deeper in her contribu-

From Left Adebanjo, Uko, Ekwueme, Ezeife And Gana At The Event

tion to emphasise this salient aspect. She noted that political leaders have refused to do the right thing even when they know that returning the nation to true federalism would solve a lot of national problems. Rather than summoning the political will to do what is right to save Nigeria, the politicians, according to Briggs, have been playing up the nation’s diversity as if it is the problem.

“There is no doubt that what makes us great is our diversity. Our diversity is not our problem; it is the politicians that are manipulating it,” she said. The resource control campaigner said the failure of the nation’s leaders to face the truth has created an angry generation of youths that only know “a troublesome Nigeria” hence “we must go back to true federalism.”

Briggs explained that those in control of power were contented playing the ostrich whereas they actually knew that the system was no longer sustainable. “We should not run away from the way forward,” she said, sounding it loud and clear that “We must have fiscal federalism.” When is true federalism expected to take effect? “This is the time to restructure Nigeria to true federalism,” said Dr Chukwuemeka Ezeife, former governor of old Anambra State.

Leader of the Igbo women Assembly (IWA), Mrs. Maria Okwor called for referendum on true federalism to resolve the debate once and for all. But a former vice-president of the country, Dr. Alex Ekwueme, who chaired the event, was not happy with the precarious situation of democracy owing to agitations for political restructuring of the country. He said the delay in returning Nigeria to true federalism was undermining the efforts of those that fought for the return of democracy after decades of military rule.

According to him, democracy would be strengthened in Nigeria if the much needed national cohesion and peace among the divergent components of the country was achieved.

Ekwueme, who led the G34 to oppose the late dictator, Gen Sani Abacha, who incidentally is President Buhari’s hero, noted that the country had reached a point when pretence should no longer becloud the sense of patriotism.

While the speakers all agreed on the urgent need for true federalism, they appeared to have divergent views on the number and nature of the federating units. Professor Gana, while acknowledging that “we have differences here and there on the number of federating units, the most important thing is that we all agreed on the need for true federalism”. Ekwueme and Ezeife believed that the existing six geopolitical zones are just enough and proper to form the federating units.

The latter explained further that the existing states within each zone would become provinces. But Gana was of the view that some of the existing zones are so large that when transformed into federating units the headquarters would be too far away from people for effective representation. Though he did not specifically say if he preferred states to zones as federating units, Gana alluded to the need to create additional states as recommended by the 2015 national conference and even the one of 2005.

Even with the strident calls for true federalism, not everybody is disposed to the idea. Some prefer to maintain the status quo. President Buhari, judging by his utterances and famous body language, belongs to the group that want the pseudo-federalism to be sustained, whereby Nigeria answers a federation in name but practices unitary system of government as bequeathed on her by the military.

The solution that has continued to enjoy wide acceptance across all the known divides is true federalism.

Indeed the clamour for true federalism continues to increase and reverberate across the country.

Unfortunately, this is one sound President Muhammadu Buhari hates to hear given his aversion to the 2014 national conference, which in its report recommended that Nigeria should revert to true federalism

Just recently, the president, during a media chat to mark the first anniversary of his administration, publicly expressed his derision for the 2014 confab report, which proponents of true federalism insist holds the key to Nigeria’s return to true federalism. He said he did not like the priority his predecessor attached to the national conference, noting that universities were on strike and keeping children out of school was considered less important to the national confab. “That is why I haven’t even bothered to read it or asked for a briefing on it and I want it to be confined into the so called archives,” he said derisively. Therefore, Buhari did not leave anybody in doubt that the confab report meant nothing to him and that he has no agenda to restructure the country as being demanded by eminent Nigerians, even from within his own ranks.

But former Vice-President Atiku Abubakar, who is a prominent member of the ruling party and respected politician from the north, recently joined the clamour for true federalism, when he argued that the present political structure was no longer sustainable. He said the time was ripe for restructuring as the country was already heading towards precipice.

Founder of IYM, Evangelist Elliot Uko said the reason the president and his likes are resisting true federalism was not far-fetched. “They want to take back Nigeria to the heady days in the early 1970s, when their word was law, when everybody trembled at their presence, when they shared our patrimony according to their whims, while the whole country worshiped them as the victorious army of conquest,” he said.

According to him, the proponents of status quo “find it hard to see that the unitary structure they instituted cannot carry us through. They refuse to accept the fact that the present 36 states structure is unsustainable. (Hence) as their old and archaic thoughts about Nigeria clashes with the reality on the ground, they erroneously resort to brutal suppression of the truth, in the false hope that the people would be cowed into submission.”

Uko said the rigid stance of the powers that be against the compelling need to restructure the country has resulted in the “endless massacre of compatriots in cold blood, like we saw in a school compound in Aba on February 9, 2016 and in a Church at Nkpor on the night of 29th May and early morning of 30th May 2016. They still believe that this genocidal killing will help them hold down Nigeria by force and sustain this unworkable unitary structure.”

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

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TUESDAY, JULY 12, 2016 • T H I S D AY

FEATURES

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

Bayelsa Turns to Farming Emmanuel Addeh writes that Bayelsa State Government has turned to agriculture to boost its revenue base and create employment for residents

Rice farm in Kolo

B

ayelsa State, like Nigeria has been over-dependent on revenue from crude oil, commonly called the black gold. The state is currently suffering the consequences of that unwitting decision or indecision since the fall of its oil earnings by more than a half.

But what many do not know is that if properly harnessed, the state’s rich agricultural resources could be a major revenue spinner and indeed serve as a model for other states.

To drive home this point, experts in the field of agro-business assert that the southern region of Nigeria where Bayelsa State is located, has one of the most productive ecosystems in the world.

As a matter of fact, the state has the highest rainfall in Nigeria, with an annual average of approximately 140 centimetres per year (and up to 400 centimetres in some areas), with a short dry season between November and March. Not a few persons believe that agriculture, rather than crude oil, which was first discovered in the state in 1956, holds the key to the future survival and growth of the state rather than a most unpredictable natural resource like crude oil.

For one, the agricultural base of Bayelsa State is extremely rich. Food and tree crops like cassava, plantain, sugar cane, coconut, oil palm, raffia palm, African mango, rubber and seasonal food crops like maize and fruits, as well as timber, could be produced in commercial quantity with a little encouragement from the authorities.

Just taking cassava alone, a product for which Nigeria is reputed to be the biggest producer in the world, an academic research carried out by Elijah Ohimain, Daniel Silas-Olu and Joy Zipamoh, all of the Department of Biological Sciences, Faculty of Science, Niger Delta University, Wilberforce Island, Bayelsa, in 2013, suggested that majority of those engaged in its production in the state were mainly small holder farmers.

The report published in the Greener Journal of Environmental Management and Public Safety, carried out in eleven sub-communities

in the area, noted that cassava produced in areas of interest usually start decaying between two to three days because there are no facilities to preserve them.

It revealed that much of the product was manually processed, with peeling and frying being the most laborious, reason mechanised farming should be encouraged.

To compound the problem, many of the local farmers and fishermen have had their means of livelihood taken away from them due to the massive pollution of the environment by the spilling of oil into their land and waters; why they needed government intervention to

For one, the agricultural base of Bayelsa State is extremely rich. Food and tree crops like cassava, plantain, sugar cane, coconut, oil palm, raffia palm, African mango, rubber and seasonal food crops like maize and fruits, as well as timber, could be produced in commercial quantity with a little encouragement from the authorities

mechanise the production of food in the area.

However, with the establishment in conjunction with Ostertrade Engineering and Manufacturing KFT/DPP International APS, a Hungarian/Danish consortium, of a cassava starch processing plant with a capacity to produce 600 tons of industrial starch per annum and an out growers scheme of 600 hectares cassava farm, the farmers might soon have a reason to smile.

But why are the authorities in the state turning their attention to cassava? One, cassava is the source of garri, a staple food made of cassava flour enjoyed by almost every household in the state and indeed Nigeria.

The Bayelsa State government says it is one of the major crops which it is interested in developing and encouraging investment in because of its sheer capacity to turn around its fortunes.

Also, with attention shifting from oil, a wasting asset, the government says it believes that local farmers can benefit from the government’s cassava commercialisation programme, through the provision of planting materials available to cassava farmers.

The two major species of cassava produced in the state are bitter cassava and sweet cassava, but the state `s Agricultural Development Programme (ADP) assures that it is encouraging farmers to plant improved varieties, which are also made available to them.

As earnings from oil declined in mid 2014, it probably forced the government to invest in a cassava plant population of 10,000 plants per hectare with an average yield of 15 -25 tonnes per hectare and an estimated land cultivation rate of about three hectares per season per farmer. With the government’s renewed effort in the cassava programme, where the local farmers receive improved species and planting materials, production is expected to accelerate.

This is likely to drive the anticipated industrial revolution in cassava-based industries in the state. Though every aspect of the processed cassava tuber is useful, the lack of adequate modern processing facilities in the state, has limited other by-products that could have

been derived from the product.

Cassava is useful as a raw material for a variety of products, and its abundance, the government assures, would support cottage and large-scale industries throughout Bayelsa State.

Since there seems to be a strong, direct relationship between agricultural productivity, hunger and poverty, the new initiative is likely to pull many away from the pangs of lack.

Aside cassava, the state is said to have comparative advantage in large-scale production of rice, palm produce, aquaculture, banana, plantain and vegetables.

It has, therefore, invested in aquaculture projects with two Israeli companies, which are presently under construction to produce 3,000 tons of fish annually. The vegetation is suitable for three cycles of rice production.

With 4,000 hectares of rice farm at Peremabiri, 5,000 hectares at Isampou and 2,000 hectares at Kolo, the governor posits that the state has the capacity to grow and produce rice that will feed the entire Bayelsa State, Nigeria, West Africa and for export overseas.

“We have concluded a seed multiplication farm on a 40 hectares at Ebedbiri for this cassava farm. The state has a palm plantation of 1,200 hectares with a potential to grow the palm plantation to 2,000 hectares at the current location.

“Similar opportunities abound across the state to increase the palm production capacity.

Bayelsa has the capacity to be like Malaysia and Indonesia in oil palm production. We therefore invite investors to partner with us in the agriculture sector,” Governor Seriake Dickson said on why Bayelsa was returning to the farm. The government also seems to be forward looking in terms of a route for exporting the products from the investment in agriculture.

To this end, it was observed that there are also attempts to link production and transportation, which have been major challenges in the state.

"We are currently working with the Federal Ministry of Aviation to develop an international passenger and cargo Airport, which is now under construction. The State Government's

19

• T H I S D AY TUESDAY, JULY 12, 2016

FEATURES

Dickson...turns to agriculture to boost the revenue base of Bayelsa

Minister of Agriculture and Rural Development, Chief Audu Ogbeh

The cassava processing plant in Ebedebiri

The onstruction of the cassava processing plant in Ebedebiri

Cassava yields from Ebedebiri

contribution to the development of that airport is over N24 billion.

"We hope that, God willing, the new airport should be ready this year. It is not a military airfield but the idea the Airforce has just come up with having a smaller airstrip within the metropolis that will serve military purposes which will also be opened for some limited civilian flights is wonderful.

“Moreso, because we are also thinking of a city airport within Yenagoa having opened up Yenagoa to the investing world from within and outside.

"We are concerned about a situation where people will land within the state capital and within the city centre, transact their businesses and possibly get back to their various destinations," Dickson noted.

It was gathered that the runway of the Bayelsa International Airport under construction will be 3.4 kilometres long and dredging as well as sand filling has reached advanced stages.

The Cargo International Airport to prepare the state for the export market from Bayelsa to anywhere in Europe is less than six hours in flight time.

“With the airport in place and the harnessing

of all the state’s agricultural potential, Bayelsa will be able to feed Nigeria, Africa and indeed, the rest of the world,” Dickson says.

But some critics of the governor have also said that the funds for building the cargo airport should be used to pay workers salaries. But those who believe in the fresh attention being paid to agriculture disagree.

As the first cargo airport East of the Niger, with the objective of improving commerce in the Niger Delta, the government notes that the facility will connect the region to the outside world and facilitate import and export trade.

Commissioner for Works and Infrastructural Development in the state, Mr. Lawrence Ewhrudjakpor, during an inspection of the progress of work at the airport, specifically said that the first cargo plane will land in the airport in October this year; about four months from now, and would boost the export of all the fruits of the agricultural programmes being put in place.

“The cargo airport will enable us to key into global economic development and we are still standing by our October date for the first plane to land here in Bayelsa.

“It is not the ordinary regular passenger

airport; work is seriously going on at the site and over two Kilometres of the runway have been sand filled.

“And what we need is about 3.5 kilometres.

The contractors have also started the vertical drains which make the sand easier to settle,” he said. He added that markets around the East and South would be coming directly to the airport when completed. Ewrudjiakpor, who described infrastructure as the key to driving the economy of the state, said the airport would link Bayelsa to the business world.

He added, “Development and infrastructure are like twins; you cannot separate any of them because they are interwoven. If you have infrastructure, then development will follow; investors and tourists will come in.”

Aside cassava production, government also said it was into a bilateral agreement with the Israeli Government to partner in the cultivation of large scale fish farms, food crops and vegetables, to tally with a policy aimed at making Bayelsa State the hub of rice, and poultry production, for commercial purpose. Rice milling machines are also being installed in strategic places across the state, building of livestock/piggery

pens, construction of humidity combustion chambers for speedy plantain growth and building of a veterinary hospital are part of the overall plan in repositioning agri-business in the state.

The construction of the Agge Deep Sea Port in Bayelsa State, due to the state’s littoral and maritime environment, the government believes, would also help revive agriculture, boost the economy, attract business from Delta, Edo, and the East especially Onitsha, which is the commercial hub of Anambra State. The port is to occupy an area of about 8,000 hectares when completed.

“Over the years, there has been over reliance on oil revenues to the utter neglect of agriculture, tourism and manufacturing, which shouldn’t have been allowed to be,” Dickson recently lamented in a bid to draw attention of the people of the state in the new policy direction.

But he quickly added that the 400 hectares of cassava farm at Ebedebiri in Sagbama Local Government Area in addition to a cassava processing plant, which he described as the largest in the country, being constructed by the Danish company, would boost the state revenue.

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L-R: Head, Marketing and Corporate Communications, ARM Pensions, Ethan Okwara; Commissioner of Police, Oyo State, Leye Oyebade; and Regional Manager, ARM Pensions, Oluwasheyi Kinoshi, at the presentation of traffic warden booths to the Oyo State Police Command by ARM Pensions, in Ibadan... recently

T H I S D AY • TUESDAY, JULY 12, 2016

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T H I S D AY • TUESDAY, JULY 12, 2016

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Quick Takes NIPCO Plc Wins Awards

NIPCO Plc has bagged twin awards in the hydrocarbon industry for its seamless operations, effective handling, storage and distribution of white products and gas across the country at the prestigious oil and gas innovation awards 2016 organised by BusinessDay -Oval Energy .

The awards namely, Downstream Marketing Company of the Year and LPG Distribution Company of the Year were presented to the company at an elaborate event in Lagos.

Receiving the awards, Managing Director of NIPCO Plc, Mr Venkataraman Venkatapathy said the feat was very inspiring and result of team work by the entire employees of the company who have continued to drive the management to greater heights in the industry.

He thanked the organisers of the awards’ for recognising the company and for taking note of the exemplary service delivery being rendered by NIPCO in both white products and gas dispense across the nooks and crannies of the country Venkatapathy assured all stakeholders that the company will not relent in offering exceptional service in the industry stressing that the organisation would continue to exhibit and maintains global best practices at all times .

Global LNG Prices Set to Rise

PRODUCT LAUNCH

L-R: Product Marketing Manager, Home Appliances Division, LG Electronics West Africa Operations, Mr. Nishant Kawoor; Product Trainer, LG Electronics West Africa Operations, Mr. Moses Osime; Assistant Marketing Manager, Home Appliances Division, LG Electronics West Africa Operations, Mr. Choon Hung Har; and General Manager, Corporate Marketing, LG Electronics West Africa Operations, Mr. Rajesh Agnihotri, during LG Evercool Smart Inverter Refrigerator launch in Lagos...recently

Gas Price Hike: Aggrieved Motorists Threaten to Shutdown NIPCO’s Stations Firm says FG responsible for hike Ejiofor Alike Barely few weeks after NIPCO Plc reopened its seven Compressed Natural Gas (CNG) Filling Stations in Benin, Edo State, after they were shutdown for several days by aggrieved motorists in protest against the hike in price of gas, the motorists are threatening fresh showdown with the company, THISDAY has learnt.

Over 4,000 motorists, who use CNG as vehicular fuel had shutdown the company’s seven CNG Filling Stations after the company increased the gas price from N55 per standard cubic

ENERGY meter to N95 per standard cubic meter for commercial vehicles.

For private cars, the company had also increased the gas price from N80 per standard cubic meter to N120 per standard cubic meter.

The private and commercial vehicle owners, who shutdown the company’s seven stations in Benin for several days, accused the company of sabotaging the efforts of President Muhammadu Buhari’s administration and the Nigerian National Petroleum Corporation (NNPC) to encourage the use of gas as vehicular

fuel.

One of the motorists and a staff of an oil company, who spoke to THISDAY from Benin, accused the company of deceit by encouraging the conversion of vehicles from use of petrol to the use of gas only to turn around to hike the price of gas.

NIPCO and the Nigerian Gas Company (NGC), a subsidiary of the NNPC had formed Green Gas Limited (GGL), a joint venture, which built CNG Filling Stations to sell gas to motorists However, NIPCO’s Head of Human Resources, who led the team that negotiated with the motorists, Mr. John

Okpeku told THISDAY that the federal government was responsible for the hike in gas price.

“CNG is a local gas but it has international price. The same federal government increased the price. The price of CNG was N55 before. Now, what has happened is that the government side increased the price of gas. So, we also increased the price we sell to motorists,” Okpeku said.

He described the action of the motorists as irresponsible, saying that they have no right Continued on page 24

PwC Identifies Steps to Achieving Stable Electricity Supply in Nigeria Chineme Okafor in Abuja In its July 2016 status report on Nigeria’s power sector, which it titled ‘Powering Nigeria for the future’, the PricewaterhouseCoopers (PwC) Nigeria has said that the country needs to quickly improve on three key aspects of its electricity value chain to be able to achieve its planned stability of supply by 2025.

The report noted that stable electricity had the transformative power to turn around the economic fortunes of Nigeria, adding that the government was looking to attract investments worth $1 trillion by 2030 into

ENERGY fixing the sector.

The report however added that the sector needs to quickly adopt three key ‘leaps’ on which it can grow. PwC listed the three leaps to include, steady improvements of installed capacities; utilisation of capacities; and cutting of transmission and distribution losses.

“The goal is to increase Nigeria’s annual per capita power consumption by 6.5 times in ten years, from 151 kilowatt hour (kWh) in 2015 to 982kWh per capita by 2025.

“This is an additional uplift of 125 per cent above the projected

consumption of 433kWh per capita in 2025. We believe this can be achieved by driving improvements across a combination of three key variables: installed capacity; utilisation factor; and transmission and distribution (T&D) losses,” said the report.

PwC further explained these three variables, their impacts on the sector and how they could be fixed, saying: “For Nigeria to achieve the stretch target of an annual per capita power consumption of 982 kWh by 2025, the country will need to improve several aspects along its power value chain. These include scaling up generation,

transmission and distribution capacity; as well as driving efficiencies in utilisation, and reducing transmission and distribution losses.”

On installed generation capacity, it explained: “We believe that Nigeria should target an increase in installed generation capacity by 40 to 45 gigawatts (GW) over a ten-year period.

Given that 32.8GW of power generation projects are already in the pipeline, we consider the stretch target of a 40 to 45 GW increase in capacity (over ten years) to be realistic.”

Also, on capacity utilisation, Continued on page 24

Asian prices for liquefied natural gas (LNG) were set to rise next week on strong prompt demand from Argentina and India as well as potentially lengthier supply disruptions in Australia and Angola.

However, this week Asian spot LNG prices LNG-AS traded lower at $5.25 per million British thermal units (mmBtu), down 25 cents since last week.

More supply in Asia helped lower prices following a streak of gains recently, but uncertainty over when Chevron Corp’s newly-built Gorgon LNG export plant will resume clouded outlooks.

Last week Chevron suspended production at Gorgon due to a gas leak and said operations would resume a week later, although it is not clear if that is still the case.

A shipping schedule released before the leak showed Gorgon would export on July 9 using the Asia Excellence tanker, which is anchored nearby, shipping data shows.

Supply from the Chevron-led Angola project also seems to have slowed compared with an initial burst of cargoes after the plant restarted in June following a two-year rebuild.

A tender for a fourth Angolan cargo was cancelled last week, and has not been relaunched yet, prompting speculation about operational issues.

In terms of demand, Argentina launched a major buy tender for 10 LNG cargoes, three of which are for the Bahia Blanca terminal with the remainder for the river terminal at Escobar.

Algeria to Counter Arbitration Claim

Algeria is preparing to counter a decision by French oil major Total to seek arbitration against its oil and gas firm Sonatrach, anticipating the legal action will have little impact, according to a Sonatrach statement.

Total said last week it had filed a request for arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s, and that attempts to reach a mutual agreement had failed.

Algeria, hard hit by the crash in oil prices, is seeking new investment to help it build up production from mature fields and explore new areas.

“We take note of the Total arbitration decision and we will prepare to counter it vigorously,” said the Sonatrach statement seen by Reuters.

It said French Total produces less than 1 percent of Algeria’s output, which is estimated at 195 millions tonnes of oil equivalent.

“Oil has done more harm than good to our environment and national psyche” Director, Health of Mother Earth Foundation, Nnimmo Bassey

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T H I S D AY • TUESDAY, TUESDAY, JULY12, 2016

BUSINESSWORLD GAS PRICE HIKE: AGGRIEVED MOTORISTS THREATEN TO SHUTDOWN NIPCO’S STATIONS

to shutdown the company’s stations.

“When they protested and shutdown our stations, our management reduced the price

by N5. But one of their leaders called Peter, who claimed to be an Ijaw man, boasted that he had fought soldiers and policemen in Niger Delta and also threatened to deal with our company. We did not negotiate with them as a union when they wanted to convert to CNG. It was based on individual negotiation and if they no longer want to use gas, they can go back to PMS (petrol),” Okpeku added.

But one of the motorists argued that it was unfair for the company to ask them to go back to petrol after luring them with several incentives to convert from petrol to gas.

He accused the company of sabotaging government’s efforts to eliminate gas flaring and create safer environment by encouraging the use of gas.

PWC IDENTIFIES STEPS TO ACHIEVING STABLE ELECTRICITY SUPPLY IN NIGERIA

the report said: “Here, we believe a target of 55 per cent by 2025 (from the current 31 per cent) will be a suitable stretch target. This will put Nigeria’s utilisation capacity on par with markets such as Brazil, Mexico and India, which have undertaken extensive efforts and investments in improving power diversity and modernising their power generation capabilities.”

For transmission and distribution losses, the report stated: “Here, a target of 13 per cent seems to be a realistic one for Nigeria, on par with that of Peru, where government participation and policy has a significant bearing on transmission and distribution, similar to Nigeria. Also Peru has effectively utilised PublicPrivate Partnerships (PPPs) to drive growth, which seems aligned to Nigeria’s direction towards encouraging private investments.”

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 (Maritme)

NEWS

Niger Delta Group Kicks against Appointment of Baru as NNPC Boss Stories by Ejiofor Alike The Niger Delta Indigenous Movement for Radical Change, (NDIMRC) has faulted President Muhammadu Buhari over the appointment of Dr. Maikanti Kacalla Baru as the new Group Managing Director of Nigerian National Petroleum Corporation (NNPC).

The Warri-based group has also argued that the replacement of Dr. Emmanuel Ibe Kachikwu with Baru was a disservice to the people of the Niger Delta. In a press statement by its President, Nelly Emma; Secretary, John Sailor and Public Relations Officer (PRO), Stanley Mukoro, the group said the sudden removal of Kachikwu was an unfair treatment not only to the hardworking technocrat, but to the entire people of the neglected oil rich Niger Delta Region.

“The whole world is our witness that we raised the alarm in April this year that Dr. Maikanti Baru was desperate to be the GMD of NNPC and was mounting pressure on the President to sack Kachikwu and now we have been vindicated.

The appointment of Baru by the President is not in the best interest of the nation, but to satisfy the interest of the North. It is unfortunate that the people of the oil-rich Niger Delta Region are being treated this way. Kachikwu brought a lot of changes into NNPC and the cabal in the oil and gas industry never liked him,” the statement said.

The group also accused Baru of working against Kachikwu’s

reforms in the NNPC, also being desperate to head the state-run oil firm. NDIMRC said it had earlier in April this year called on Buhari to sack the new NNPC boss because of his acts of desperation to head the organisation.

The group insisted that it was Kachikwu’s dual roles that gave confidence to the people of the Niger Delta and facilitated the peace deals he negotiated on behalf of the government.

“Only last month, Kachikwu

against threat to his life and members of his family, took a risky trip to the troubled Niger Delta region to see things for himself at the controversial Nigerian Maritime University, Okerenkoko, Gbaramatu Kingdom, in Warri South West Local Government Area of Delta State and his visit brought hope to the hopeless people of the region.

His trip to the area also helped to reduce the spate of attacks on oil facilities by rampaging militants,” the group added.

“Can Baru take a trip to the Niger Delta region? As the new GMD of NNPC, can he plead with rampaging militants in the Niger Delta region to give peace a chance and they will listen to him? The choice of Baru as the man at the helm of affairs in NNPC is not the best,” NDIMRC said”.

“As an oil monitoring group, we are highly disappointed that the President decided at this crucial time to leave the affairs of the NNPC in the hands of

Baru. We are not impressed that President Buhari in his bid to satisfy the interest of the north with more juicy positions at the detriment of the oil producing people of the Niger Delta Region, left the affairs of NNPC in the hands of a desperate Baru, who will only sit in the comfort of his office in Abuja without thinking about the pains the oil producing people of the Niger Delta region are passing through,” NDIMRC added.

SHARING BUSINESS IDEAS

L-R: Chief Operating Officer, Weco Systems International Ltd. Nnamdi Onyebuchi; Head Infrastructure Solutions Division, Olatunji Adebajo; Systems Engineer, International Sales, Cisco Systems, Funmi Coker; and General Manager, Sales, Weco Systems, Ambrose Okougbo, during the Weco/Cisco Enterprise Mobility Workshop in Lagos … recently

Nwuche Urges Niger Delta NERC Probes Electrocution of Three Persons AvengerstoEmbraceDialogue in Abuja Suburb A former Deputy Speaker of the House of Representatives, Hon. Chibudom Nwuche has urged the Niger Delta Avengers (NDA) and all militant groups in the Niger Delta region to sheath their sword and embrace peace.

Nwuche, who also called on the federal government to open up dialogue with the leaders and stakeholders of the region to genuinely address their grievances, further argued that what Nigeria needs now is a just and equitable federalism where all units are given a sense of belonging and equal access to opportunities .

He also urged the federal government to disregard moves by some non- governmental organisations (NGOs), who are positioning themselves as mediators in the dialogue between the federal government and the aggrieved youths.

According to him, such a move is not holistic and representative enough to achieve the desired peace in the region, without involving the political leaders of the region.

In a statement issued in Abuja, Nwuche said the recent acts and campaigns of destruction of oil facilities in the region would have far-reaching negative effects on the people of the region.

He noted that the people

of the oil-producing region depend on farming and fishing for sustenance.

“Oil spills and effluents arising from the destructions of pipelines and other oil installations flow into the farm lands, creeks and streams; it possesses very serious environmental threat to the ecosystem by affecting the fauna and flora for which the economic life of most people of the region depends,” Nwuche said.

According to him, the continued destruction of oil pipelines will have adverse effects on the revenue accruing to the Niger Delta states from the Federation Account.

Nwuche also argued that this in turn, affects the ability of the state governments in the region to meet up with their financial responsibility to fulfill the electoral promises made to the people.

“It also affects development in other parts of the country, as oil is the mainstay of our national economy for now,” he added.

He further appealed to the elders and leaders in the South-South region to quickly intervene in the recent upsurge in militancy in the region by suing for dialogue with all aggrieved parties and stakeholders, in order to achieve a lasting peace.

Chineme Okafor in Abuja The Nigerian Electricity Regulatory Commission (NERC) has pledged to investigate the cause of another electricity accident in which three persons died and over five people injured when a transformer reportedly exploded in a densely populated suburb of Lugbe area of Abuja.

NERC’s acting Head, Dr. Anthony Akah, who met with victims of the accident last weekend at Lugbe Tudun Wada, said the commission would undertake a thorough investigation of the incident.

He said appropriate sanctions would be imposed against the Abuja Electricity Distribution Company (AEDC) if it was found guilty of breaching existing operational procedure in its supply of electricity to the suburb.

Akah, however, directed the Disco to immediately take up the medical care for the injured victims of the accident. He told reporters that AEDC had reported three deaths and several degrees of burns from the accident.

Leading an investigative team to the area which has a very poorly planned electrical infrastructure and populated with over 5,000 residents, Akah said he was there to commiserate with families of

the victims in addition to his assessment of the damages.

It was gathered that the conductor of the exploded transformer had snapped, causing power surge and the accident in the community that is less than two kilometres from the Federal Housing Authority (FHA) Estate in Lugbe.

Further checks by reporters also showed that most of the households within the suburb were illegally connected to AEDC’s distribution grid using poor quality cables and equipment.

Also a large chunk of the settlement, including a minimarket also stretched across the double 330KV/132KV transmission lines of the Transmission Company of Nigeria (TCN) which supply electricity from two power stations in Geregu, Kogi State – NIPP Geregu and Geregu Power Plant.

Speaking with reporters, one of the residents alleged that original settlers of the suburb had been compensated by the government before the transmission towers were erected but many chose to remain and even built houses under the high tension zone.

The resident also stated that AEDC was aware of such anomaly but had continued to supply power to and generate revenue from customers in the

suburb. He said the Disco did not consider cleaning up the poorly-wired suburb.

Another resident, Sunny Adu narrated how the incident occurred. He said: “We were just around the transformer when the conductor at the pole snapped and went into flames.

A house behind it was affected as Peter Haruna’s pregnant wife and child sustained serious burns.”

“Three persons including a 22 year old boy, Joseph Terver died, over five others sustained serious burns from over seven houses some metres away from the transformer,” added Adu. It was also learnt that most of the survivors were paying for their medical treatments, but NERC had asked Abuja Disco to assume the payment and also recompense those who had made such payments.

“We want you to take all the survivors to the National Hospital or the best medical facility for immediate treatment today (Saturday) and not Monday. You must also refund to them the expenses they have incurred so far,” Akah told AEDC’s Director Regulatory Affairs, Abimbola Odubiyi.

He also told the victims to contact NERC if AEDC failed to obey its directive to take up their medical treatments.

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T H I S D AY • TUESDAY, JULY 12, 2016

BUSINESSWORLD

ENERGY

Instability in NNPC Citing the experience of Saudi Aramco where Khalid Al-Falih was Chief Executive Officer for eight years before he was appointed Oil Minister in May 2016, Ejiofor Alike reports that frequent changes in the Nigerian National Petroleum Corporation have served to create instability that have hindered implementation of strategic investment decisions

F

requent changes in the management of the Nigerian National Petroleum Corporation (NNPC) have become the bane of the state-run oil company, especially since the past nine years.

The last two group managing directors of NNPC to enjoy relative stability in office were Dr. Jackson Gaius-Obaseki (19992003) and Mr. Funsho Kupolokun (2003-2008).

With the recent appointment of Dr. Maikanti Baru, the NNPC has produced nine group managing directors since 2008 and none stayed in office for up to two and a half years.

While Andrew Yakubu spent two years and two months, Austen Oniwon was retired after two years and one month.

Among all the past heads of the corporation, the late Shehu Ladan enjoyed the most controversial outing, spending only two months before he was fired under controversial circumstances.

With these frequent changes, successive managements of the NNPC have not been able to implement long term plans that will solve the myriad of problems facing Nigeria’s oil and gas industry.

While other National Oil Companies (NOCs) have been able to sustain long term growth in their countries’ hydrocarbon reserves and production because of stable management, Nigeria’s crude oil reserves and production have continued to shrink over the years due largely to instability in NNPC. For example, before Saudi Arabia replaced its veteran Oil Minister, Ali Al-Naimi in May 2016, Al-Naimi, 80, had been oil minister since 1995, thus the most powerful man in the global oil business for two decades.

Khalid Al-Falih, who replaced Al-Naimi as the new minister, was the chairman of the state oil company, Saudi Arabian Oil Company (Aramco), the equivalent of NNPC, for eight years before his new appointment.

So, while the minister was in office for over 20 years, Al-Falih also headed the state-run firm for eight uninterrupted years and this engendered stability in the country’s oil and gas industry.

As the oil minister of a country that controls the largest proven crude reserves in the world, al-Naimi was the de-facto leader of the Organisation of Petroleum Exporting Countries (OPEC).

Just like Nigeria’s Minister of State for Petroleum, Dr. Ibe Kachikwu, who until recently was also the Group Managing Director of NNPC, Al-Naimi had also at a point combined three roles - Minister of Petroleum, Chairman of Saudi Aramco and Chairman of Saudi’s Supreme Petroleum Council.

But due to the instability that characterises Nigeria’s oil and gas sector, Kachikwu’s tenure as the head of NNPC lasted for less than 12 months. Al-Naimi’s over 20 years as oil minister created stability in the world’s largest crude oil exporter’s energy industry and strengthened the country’s voice in the global oil market as it embarked on economic measures to be less reliant on energy after the collapse of the oil prices. For more than two decades in the post, Ali Al-Naimi, who was the central player in scores of OPEC meetings, steered global crude markets through several boom-and-bust cycles.

With the plummeting prices of crude oil, the former Saudi oil minister effectively defended his country’s market share in the global oil market, insisting that OPEC would not budge on its decision not cut production, even if oil hits $20 a barrel.

Having ensured that his country saved during the rainy day with long term plans guaranteed by his long tenure, he also once boasted that his country would survive at $20 per barrel oil, when Nigeria other OPEC members that frittered their resources during the period of boom were clamouring for production cuts to ensure price recovery.

al-Falih

Baru

Under Saudi’s new arrangement, the Ministry of Electricity has been discontinued and its activities folded into Al-Falih’s portfolio.

So, like Nigeria’s Babatunde Fashola, who is the Minister of Power, Works and Housing, Al-Falih is heading the Ministry of Energy, Industry and Mineral Resources as a super ministry also covering electricity.

are all dividends of long term planning and system stability in both Aramco, whose chief executive lasted for eight years, as well as the oil ministry where the minister was in saddle for over 20 years.

NNPC, on the other hand, has been bogged down by a debt of $7 billion owed the IOCs as joint venture cash calls.

Benefits of system stability The most interesting thing in the case of Saudi Arabia was that while NNPC was ridden with corruption, mismanagement and instability occasioned by frequent changes in the management, Saudi’s Aramco enjoyed management stability as Al-Falih remained the head for eight years.

Under al-Falih’s leadership, Saudi Aramco had moved to secure its market share. With its solid revenue and investments made during the period of boom, the company was still spending as much as it did before the crash in crude prices.

In contrast, the NNPC’s inability to provide funding for its cash calls with the joint venture companies with the IOCs has stalled new JV projects.

While NNPC’s refineries have virtually collapsed on account of inadequate maintenance, Aramco is looking to invest in its refinery network around the world, with Al-Falih, being quoted as saying in January this year that Aramco could sustain low oil prices for “a long, long time.” As the prices of crude oil dropped since 2014, the kingdom burned through roughly $115 billion in foreign exchange reserves, representing the biggest annual drop since reliable data started in 1957, according to the International Monetary Fund.

According to IMF, the decline in 2015 was more than double the plunge during the global financial crisis in 2009.

But despite these huge losses, Riyadh has $582 billion in foreign exchange reserves, which is a strong indication that it can weather a few more years of low prices.

Apart from planning to sell five per cent stake in Aramco to generate about $120 billion, the kingdom is also planning to tap the bond market late this year to raise funds. These

Case of NNPC While Al-Falih had enjoyed eight years of uninterrupted tenure as the President and Chief Executive Officer of Saudi’s Aramco from January 1, 2009 to May 2016, the NNPC has produced eight group managing directors since the past eight years.

In July 2015, Kachikwu, took over from Dr. Joseph Dawha, who was appointed in 2014 to replace Andrew Yakubu, who spent about two years in office. Yakubu, who was appointed July 1, 2012, was the fourth GMD of NNPC in the about five-year reign of Mrs. Diezani Alison-Madueke as Minister of Petroleum Resources. Within five years (2010-2014) the NNPC had five GMDs, a development that sent panic to operators, particularly foreign operators that wanted to engage in long-term oil and gas business with Nigeria.

Apart from Abubakar Lawal Yar’Adua, who was sacked early January 2009 by the late President Umaru Yar’Adua administration, the other five GMDs within the five year tenure of Alison-Madueke included Dr. Mohammed Barkindo (January 12, 2009-April 2010); Mr. Shehu Ladan (April - May 2010); Mr. Austen Oniwon (May, 2010-June 26, 2012); Mr. Andrew Yakubu (June, 2012-2014) and Mr. Joseph Dawha (August 2014-August 2015).

Yar’Adua, who was the first GMD appointed by the late President Yar’Adua, served for less than two years before he was replaced with the incoming OPEC’s Secretary General, Barkindo, on the prompting of the then Minister of Petroleum Resources, the late Dr. Rilwanu Lukman.

So, Dr. Maikanti Kacalla Baru, who was appointed recently to replace Kachikwu, is the eighth group managing director of the corporation since January 2009, a period of

eight years during which only one CEO headed the Saudi Aramco. In fact, Baru is the ninth GMD since former President Olusegun Obasanjo handed over power on May 29, 2007 when Mr. Funsho Kupolokun was the GMD. Challenges of instability Due to the instability in the management of the NNPC, the corporation has lost focus over the years and derailed from its core functions, resorting largely to a mere marketer of crude oil and importer of petroleum products, with no active participation in the core oil and gas business of exploration and production, as well as refining or processing of oil.

Instead of being active in the upstream business and competing for oil blocks with Shell, Chevron, Total, Agip and ExxonMobil, the NNPC concentrated largely on the downstream business of importing and selling petroleum products. Despite having larger stakes in the upstream sector than the IOCs, the corporation allowed the multinationals to run the joint venture business. The corporation was also ridden with massive corruption, which President Buhari inherited.

In fact, as Buhari was sacking the former Group Managing Director, Dr. Joseph Dawha and announcing Kachikwu as his replacement, a new report by the New York-based Natural Resource Governance Institute (NRGI), claimed that Nigeria lost over $32 billion oil revenue due to the mismanagement of domestic crude allocations (DCA) by NNPC, as well as the opaque revenue retention practices and oil-forproduct swap agreements signed between the corporation and some oil traders.

The allegation of corruption against the NNPC is however, as old as the national oil company, dating back to the military administration of General Obasanjo (retired), between 1976 and 1979.

It got to a peak during the administration of former President Goodluck Jonathan when a former Governor of the Central Bank of Nigeria (CBN), Mr. Sanusi Lamido Sanusi alleged that the NNPC failed to remit the sum of $49.8billion for the period January 2012 to July 2013.

Continued on page 26

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Beaming the Searchlight on Manitoba Damilola Oyedele examines the findings of the House of Representatives Committees on Power and Privatisation that investigated the alleged infractions by Manitoba Nigeria Limited in its management of the Transmission Company of Nigeria

Manitoba Hydro International Headquarters Several stakeholders have accused Manitoba Hydro International (MHI) Nigeria Limited of failing to meet its key performance indicators (KPI) as contained in the Schedule of Delegated Authority (SODA), which the federal government issued in the contract for its (MHI) management of the Transmission Company of Nigeria (TCN).

Ahead of the expiration of the management contract on July 31, 2016, several groups, including the Human Rights Writers Association of Nigeria (HURIWA) had urged the government not to renew the contract. Specifically, HURIWA, noted that the electricity situation in Nigeria has remained abysmal despite MHI’s contract to upgrade and manage Nigeria’s transmission network.

The pressure on the government to kick out MHI from the TCN continued despite the claims by the management contractor that it had received very little support from the government to do the job which have received condemnation from experts in the power sector.

Those who faulted MNI’s job insisted that the work culture of the expatriate workforce in MHI Nigeria Limited were different in terms of operational ethos and principles of the parent company which is based in Canada.

Allegations by the House of Representatives The alleged infractions by Manitoba in the management of Nigeria’s transmission network, had prompted an the House of Representatives to direct an investigation into the affairs of the company, following a motion by Hon. Jonathan Gaza Gbewfi (Nassarawa PDP).

Gbewfi, in the motion raised at plenary, had accused the company of unlawfully revalidating a 2010 contract worth N1.9billion, and awarding it to ABB India without recourse to the Public

Procurement Act. Like HURIWA, the lawmaker also accused the firm of draining Nigeria’s crucial foreign exchange.

He said although the official exchange rate of the US dollar to the Naira four years ago, was around N160, the exchange rate used by the management company since 2012 has been N395 to a dollar, which was still higher than both the official and parallel market rates.

Gbewfi added that as a result of the unlawful exchange rate, the TCN fraudulently and illegally lost N3.7 billion, over and above its entitlements in the management contract.

He further noted that consideration of the management contract with Manitoba included emoluments for 15 expatriates, but only eight expatriates were working at TCN. He added that in these harsh economic times, the Managing Director of TCN, a public corporation, draws a monthly salary of N35,500,000 while other expatriates and the Managing Director, (ISO) earned monthly incomes of N20, 500,000 and N19,100,000 respectively.

The House had directed its committees on Power, and Privatisation to investigate the issues raised in the motion and report back it.

Other lawmakers, who spoke to THISDAY on the matter, also accused Manitoba of not paying the proper taxes despite being incorporated in Nigeria, even though it is a Canadian firm.

Specifically, one of the lawmakers, who spoke on the condition of anonymity, blamed what he called the excesses of Manitoba on the terms of the contract, which he said was hurriedly signed, without adequate consideration to the national interest.

“It was drawn in such a way that it gave the foreign managers more latitude to manage our

sovereign wealth. It is not proper that sovereign wealth is given to foreigners to manage. The market funds, the pool of funds where even the funds which we get from power sold to Ghana and Niger is managed by them,” the lawmaker lamented.

He added that Manitoba could not be considered to have performed well, when assessing the deliverables which they signed up for.

Power Woes Worsen The electricity situation in Nigeria has progressively moved from bad to worse as generation has plummeted to all time low, in recent times due mainly to vandalism of gas pipelines and other electricity equipment.

While experts have identified the renewed militancy in the Niger Delta region, resulting in the shortage of gas, as a major reason for the low power generation, the inability of the TCN run by MHI Nigeria Limited to grow and keep significant spinning reserves to jumpstart the system on events of sudden collapses had adversely affected the stability of Nigeria’s electricity grid.

The country’s hydro support base such as Kainji, Shiroro and Jebba dams are also being affected by lower water levels, while some of the distribution companies have had to battle with operational disruptions by the labour unions and other issues.

Also in the last one year, there has been no considerable infrastructure investment by the government, therefore contractors are not being adequately mobilised for maintenance work.

There are also lingering issues between distribution companies and customers such as metering, litigation, and issues relating to

letters of credit.

The Bureau for Public Enterprises (BPE) has also been accused of not activating its majority stake, which gives it veto, in decisions with the distribution and generation companies.

Oversight by National Assembly When contacted, the Chairman of the House of Representatives Committee on Power, Hon. Daniel Asuquo acknowledged that some infractions have been discovered in Manitoba’s activities during a recent investigative hearing on the N2.7billion severance for Commissioners of the Nigerian Electricity Regulatory Commission (NERC).

“We realised that there have been a lot of infractions as regards procurement. Contracts were awarded verbally, due process was not followed. TCN staff came and gave verbal evidence,” he said.

Asuquo also disclosed that the Minister of State for Power, Mr. Mustapha Baba Shehuri, at the hearing, had requested that the ministry be allowed to look into the infractions and other issues identified, adding, “till date, we have not gotten any report from them on that.” He said that the joint committees would request for the ministry’s evaluation report of Manitoba for the mandated investigation.

Asuquo, declined to comment on whether the contract which expires at the end of this July, should be renewed or not, insisting he cannot preempt the investigation.

He however promised that the Senate and House Committees on Power would henceforth ensure proper oversight of the power sector, with a view to identifying and tackling the issues hindering steady electricity supply in Nigeria.

INSTABILITY IN NNPC Sanusi, now Emir of Kano had written a letter to President Jonathan, which leaked to the media, complaining about the alleged missing funds.

The corporation has also not been able to find solutions to the challenge of inadequate funding due to lack of effective and sustainable long term planning to address the issue.

So, the international oil companies (IOCs) are looking for opportunities elsewhere, citing the unpredictability of Nigeria’s operating environment and NNPC’s failure to provide joint venture cash calls.

With the dwindling investments, Nigeria’s target to grow crude oil reserves and production to 40 billion barrels and four million barrels

per day, respectively by 2010 has remained a mirage up till today.

Before he was removed, Kachikwu had unveiled his blueprint to tackle the issues of dwindling funding and investments and had insisted that what was needed was the restoration of the confidence of investors to bring in new funding, while solutions were

being explored to repay the historical debts.

With Baru as the new boss of the NNPC, it is not clear if he will implement Kachikwu’s blueprint or start all over again.

Also with lack of stability in NNPC, successive managements have not been able to find solutions to the country’s poor refining capacity as the refineries remain comatose.

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Stalling Ogoni Clean-up Spreads Scope of Oil Pollution in N’Delta Nnimmo Bassey, a renowned environmental justice advocate is the Director of the Health of Mother Earth Foundation, an ecological think tank and advocacy organisation.

He also chaired Friends of the Earth International from 2008 to 2012. He spoke to Chineme Okafor on the challenges of oil pollution in the Niger Delta, its remediation, and the renewed insurgency in the region. Excerpts: Thank you for accepting to share your time with us. The government just launched its plans to clean up the polluted Ogoni environment in the Niger Delta, would you consider this time appropriate for the request that had been on the table for a long time now?

The clean-up of the polluted Ogoniland and the entire Niger Delta has been long in coming.

The exercise should have started decades ago, and every delay has meant an increase in the scope of the problem including the accumulation of new toxic dumps, oil spills and gas flares.

There is at least one oil spill that occurred in the early 1970s and is yet to be remediated. That spill is at Ebubu Ejama and anyone can visit and see it. The site is fenced off and guarded, but it is right there as a sore thumb crying for attention.

So, what is the appropriate time to detoxify a contaminated environment? Pollution should not be tolerated for one day. However, as they say, it is better late than never. The impact of pollution from petroleum exploration and extraction in the Niger Delta is so extensive that the region has earned the ugly reputation of being one of the top most polluted places on earth today.

In fact, we can say that what has been done to the environment amounts to ecocide and requires to be treated as such. We always talk about oil spills and gas flares but beneath the radar is the dumping of hundreds of thousands of barrels of produced water daily into the Niger Delta environment. So, my point is that today is a better day to commence the clean-up process than tomorrow.

Bassey

Would you then consider such renewed pipeline breaks as a perfect storm for stakeholders to ride on in remedying the polluted environment of the Delta?

This is an interesting question. My short answer is that the clean-up is a perfect retort to the destroyers. We can only overcome evil with good, not with more evil.

I see a clean-up of the Niger Delta as the best foot any government can put forward. This is why the present government should not only commence the marathon but lay down strong structures that will ensure that no one plays politics with the exercise.

the UNEP Report provided adequate measures to clean up this environment?

The UNEP report was an assessment of the environment of Ogoniland. That report was published five years ago and to our shame nothing substantial has been done about implementing its recommendations. While that was a fair assessment of the state of the Ogoni environment five years ago, the situation in other parts of the Niger Delta has not been assessed.

Agreed, we can see the UNEP report as a template or snapshot of the overall Niger Delta context, but we must not lose sight of the fact that pollution is going on unabated in places like Ikarama in Bayelsa State and Ibeno in Akwa Ibom State, to mention a few.

So, if the UNEP report revealed a horrific state of an environment where oil extraction was stopped 23 years ago, we can only imagine what the situation is at other places where routine pollution has reined since the 1950s.

We should also add that naming Oloibiri oil well, which is acclaimed as the first oil, as a monument, is not an answer to the non-decommissioning of dried wells in the region. Mining agreements have allowances for decommissioning at the end of the lifespan of the mines. The same is the case with oil wells as contained in EGASPIN. We have abandoned oil wells begging for decommissioning and others drilled, capped and ignored until they rupture and spill crude into already bastardised environments. We have to wake up from this nightmare and do the right thing.

The UNEP report made recommendations for short, medium and long term measures.

Although there are gaps in the report itself, it provides sufficient grounds to begin emergency measures, like provision of potable water in highly polluted areas, as well as training centres to raise the manpower that would be needed to support the clean-up efforts.

From your assessment as an environmentalist, how bad is the environment of the Delta, has

Have you studied the government’s clean-up plan, vis-à-vis the recommendations of UNEP.

We are seeing insurgency come up again in the Delta, crude oil pipelines are again broken and products spill into the environment, what is the implication of this?

The renewed incidence of third party pipeline rupturing is a great concern. They are massively polluting the environment and increasing the miseries of the local communities. The insurgents may claim that they are not killing people, but every polluting act in our fragile ecosystem has health and life expectancy implications.

This is especially so because our people are condemned to drink water from polluted streams, eat polluted fish and farm in polluted lands.

Belligerent groups should consider the impact of their actions on the people and even future generations.

A point that we must make is that it is sickening when analyses of the impact of the pollution of the region is tied solely to loss of revenue.

This rather unfortunate position discounts the lives of the people and all efforts to contain conflicts are aimed at keeping a steady flow of crude oil, maintaining production quotas and ignoring the blood, tears and sorrows of the communities.

Is there any cheery news in this?

The clean-up was ceremonially flagged off on 2nd June 2016 as a demonstration of the determination of government to actually clean up Ogoni and the entire Niger Delta. We are all waiting for government to set up the support and governance structures that would affect the actual clean-up. We are waiting to see the revised gazette for the HYPREP, the major structure that would drive the process. Until we have these structures in place we cannot in any honesty say what is cheery or not cheery.

As someone who has heard and seen some of the efforts being made towards setting these structures in place, I can say that there have been serious efforts at listening to the voices of Nigerians on the architecture of the organs that would oversee the processes.

However, until these are done, we can only say we hope that the clean-up gets off the ground beyond the ceremony of 2nd June.

Beyond the clean-up, what should be the next focus to keep the Delta clean from oil pollution?

This is a good question. First we have to urgently transit from dependence on crude oil and other petroleum resources. Oil has done more harm than good to our environment and national psyche. It has built a dependency syndrome coupled with rabid corruption. That is one.

Secondly, there should be urgent auditing of all oil facilities to check their current state and to ensure that they are serviceable. Third, those blowing up pipelines should utilise their skills in productive ventures. It is such a shame and waste to utilise diving and underwater welding or military skills to breach pipelines.

Fourth, oil companies should rise above their current crude methods and work strictly in line with standards – national and international requirements as well as internal industry standards. They should check the integrity of their facilities and respond promptly when incidents occur. Fifth, regulatory agencies should be fully equipped and uncoupled from dependence on

the oil companies they are meant to regulate or monitor.

Here I have NOSDRA and DPR in mind.

The NESREA Act should also be amended and the oil sector brought under its purview. Sixth, communities and civil society groups should be adequately empowered and granted unfettered access to monitor oil company activities in their environment.

Finally, the discontent in oil field communities can be smothered if the provisions in the Mining and Minerals Act of 2007 are also made applicable in the petroleum sector. The Mining Act has a clear section on environment and community issues. The communities are clear stakeholders and owners of lands set and receive annual rents when their lands are used. There also clear provisions for agreements to be reached with communities on the social responsibilities of the companies. Besides there are areas or territories with special significance to communities that mining is not allowed. Why can we not change the war laws governing the petroleum sector from the days of the Nigeria-Biafra civil war? I recommend that the NASS lifts those sections of the Minerals act 2007 that speak to communities and environment and insert them in whatever Petroleum Industry Bill they are working on. That should build peace and settle the matter of stake holding in the sector.

Ultimately, States should own whatever resources they have in their territories and pay taxes of whatever magnitude to the federal government for the running of collective concerns.

We cannot run governments by bailout. We need to get to work.

Nigeria recently submitted a revised country plan on gas flare-out to the UN, that plan suggests that deadline to end gas flare in the country has been pushed back again, what does this mean?

That is the same question I have. Gas flaring has been illegal in Nigeria since January 1984.

We have not done the right thing with regard to this environmentally harmful practice. The only good in having a deadline is that there is a measure by which someone can be held to account. In that sense, it is better than not having a target. But we need to see actions on the ground. The health and economic impacts of gas flaring are glaring and Nigeria should face up to this morbid monstrosity and stop it.

You advocated in your book, ‘To cook a continent’ that the best way out of oil pollution was to leave the resource in the soil, what do you mean by that?

Keeping the oil in the ground has since become a global call. In a period of two weeks in the month of May 2016, climate activists in fifteen countries, including Nigeria, embarked on a series of actions under the banner, ‘Break Free from Fossil Fuels’ to underscore the urgency of this unavoidable call.

Keeping fossil fuel in the ground rather than extracting and burning them, is the cardinal action needed to fight global warming. This is the crucial matter that the Conference of Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) has refused to acknowledge possibly due to the influence of the fossil fuel industry and their political backers. It is known that unless 80 per cent of known fossil fuel reserves are left unburned we are set on the track to catastrophic climate change. What will prevail here: common sense or dollar sense? Life or profit? These are the questions. These constitute the point in our call to leave the oil in the soil and the coal in the hole.

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Nigeria’sSurvivalHangsonNutrition,Enterprise Crusoe Osagie discusses the certain crisis awaiting Nigeria as her population continues to rise and the survival strategies being promoted by HarvestPlus and DFID Nigerian leaders seem to be unaware of what the real challenge of the nation is.

By 2050, the massive West African nation which is currently the seventh most populated in the world, will rise to the fourth spot with an estimated 397 million people.

This information provided by the Population Reference Bureau (PRB), a Washington-based organisation that informs people around the world about population, health, and the environment should unsettled any right thinking government.

More damning about Nigeria’s demographic challenge is the fact that about 70 persons who will make up the 397 million will be youth around the age of 40 years and below.

Even the N500billion (about $1.6billion) social investment included in the Buhari budget which the government is still at a loss about how to fund, is a hilarious joke, compared to what is suitable to prevent the socio-economic mayhem that lies ahead.

Apart from making efforts to rid the country of corruption, which is a commendable step the current government is taking, save for the complaint of partiality from the opposition, the next most serious problem is youth empowerment.

To empower the youths you must build both social and physical infrastructure, you must develop education and provide good access to it, you must create opportunity for vocational skills to easily pass on to the young and inquisitive, you must provide access to credit in order to drive entrepreneurship.

All these steps, among many others will help to breed hope among the over 200 million young people that will make up Nigeria by 2050, because without hope, this population instead of being capital for the nation, will be an armed nuclear war head, which will tear down the country, its African neighbours and most of Europe and the United States once it explodes.

HarvrestPlus and DFID Efforts This is the reason why the recent effort of HarvestPlus, an organisation that develops and promotes biofortified crops rich in vitamins and minerals, along with the United Kingdom’s Department for International Development (DFID) Market Development in the Niger Delta (MADE), to promote enterprise among the people of the ravaged Niger-Delta region deserves commendation and emulation.

Last week, the two organisations executed another round of training session for 150 women in pastries business.

The trainees, mainly females, who were drawn from rural communities and top hotels in Akwa-Ibom and Abia states, were taught methods to utilise vitamin A cassava in pastries production, as well as, profitable business practices so as to scale their operations for commercialisation.

Hope for the Disabled One of the beneficiaries of the effort, Grace Udom, 30, who wears an infectious laugher was particularly striking. Petite and physically challenged, she has fought life’s battles gallantly and indeed has a reason to smile, gifting to friends a share of joy from the fullness of her heart.

Having to manage through life limping with crutches, she stumbled last year on a training on self empowerment after which her life took a new turn. She had very little to do before, but was trained on how to make combobites, a nutritious snack made from vitamin A cassava, as well as, other confectionaries, so as to eke out a living.

Now, regardless of her physical condition, Udom, who chats excitedly in a training center in a Catholic church in Uyo, Akwa Ibom, makes at least N20,000 weekly, has recently gotten married and has a baby.

Udom is one among many beneficiaries of trainings of HarvestPlus Nigeria, an agricultural non-profit organisation that breeds and disseminates rich staple crops to reduce hidden hunger among malnourished populations.

HarvestPlus Efforts HarvestPlus has partners in more than six Nigerian states, who help in fortifying the

Participants at the HarvestPlus-DFID training vitamin A cassava value-chain, and are working to expand into more states, preaching the message of biofortification and working to reduce malnutrition in Nigeria. Other than efforts to help farmers attain higher yield from rich staples, the firm is building a framework that connects farmers with processors, ensuring that the nutritious content in the crops are retained when they finally get to the final consumer, so as to guarantee that the fight against malnutrition is truly achieved.

The head of Nigeria’s country office of HarvestPlus, Dr. Paul Ilona, has been at the forefront of the quest to get Nigerians to consume more nutritious staples and lead healthier lives.

He believes the training would go a long way in equipping youths not only in making money and scaling their small and medium businesses, but also fight malnutrition.

“We must work to bridge the gap and arrest the rising mortality challenge. Interestingly, in training youths to produce nutritious foods, we are ensuring that they make substantial income while saving lives,” he said.

He added that the training prioritises strategies to ensure profitability, noting, “This is because if you get a loan, you must be ready to pay back with interest. In order to do that, businesses must be willing to increase their scale of operations. When quality drops and you cut corners, a business dies. So in growing through economics of scale, small businesses must prioritise quality so as be able to repay loans as well as make more profit.”

On the commitment to link small businesses to markets, he said, “At DFID-MADE and HarvestPlus, we are committed to creating a platform to ensure that those involved in vitamin A cassava farming grow. It would be out to place to hear that farmers produce and cannot sell their products. We would link them to the market, but they will go the extra mile to produce the desired quality.”

Approval from the Academia Making a case for the training, Akwa State University (AKSU) partner of HarvestPlus and MADE consultant, Dr. Edna Akpan, said processors in the state, who have added value to vitamin A cassava, needed sustainable links to those who would use their products in making pastries.

“The level of adoption of vitamin A cassava

in Akwa Ibom state is alarming. The people are agitating for more; the demand is that high.

Hence, this training is aimed at identifying and targeting women in pastries production in the state. That is why we have brought the women here.” Noting that the programme is designed to provide funding to the best trainees, she said soft loans would be provided for those who show promise and are diligent, as it was desired that those who get trained scale out and fully commercial their products.

Mrs. Imeobong Edet, who runs Imeakan Farms in Akwa Ibom State, is a key player in the training session, as she helped in processing her vitamin A cassava farm produce into flour to be used in teaching the participants on best practices in using the improved product in producing nutrient-rich confectionaries, such as combobites.

“I wanted to go into farming about three years ago, and met with Emmanuel Akpan, the extension head at the Akwa Ibom State Agricultural Development Project (AKADEP) on how to go about it. I showed AKADEP my farm and they asked me to plough and weed.

Then they came and inspected my farm and gave me the stems. I started with 2.7 hectares land with vitamin A cassava three years ago.

After I did that and harvested, I had problems with where to sell because the awareness of the product wasn’t that much at the time,” she said. Confused and needing a way out of the perennial problem equally faced by many Nigerian farmers, she went back to the ministry of agriculture, where she was advised to set up a mill. She heeded the advice and set up the plant to scale her business and move up the agriculture value-chain.

“I started producing garri and fufu. In two years, I have done about done about 10 hectares of vitamin A cassava alone. We just got a new variety which we have taken to the farm for second season planting. We have finished with the planting and we understand that it is going to do better than the ones we had before,” she said. “So when they said they wanted to do the training today and had difficulty in getting flour, I told them I can do something for them. It was cumbersome but

by God’s grace I was able to produce flour for them. And that’s the flour they are using for this programme today.”

She produced three bags of flour for the

training and is hoping to scale production of the product in the coming months. Brimming with pride, she says she is a passionate farmer, who decided to plunge into farming not minding distractions when she acquired the land and was given the stems, noting, “You are not going to make much more initially. In fact, in the early days, what you get would not be comparable with what you put into it. But gradually, you would break even. For instance, I have scaled into processing of the produce and now I produce flour.”

Udom is also scaling her business, as other than the products she learnt at the last session, she now makes burger from vitamin A cassava and believes it takes such innovative moves to become successful.

“I supply supermarkets my product and sometimes, I can’t even meet the demand. The response to my products in the market has been encouraging. A lot of people are now switching to products from vitamin A cassava because it is good for those who have diabetes.”

While many are focused on maximising the health benefits of vitamin A cassava, Ime Malachy, an innovator, has other ideas. He hails from a village which utilizes local technology in distilling drinks and has deployed the technology in producing innovative products from vitamin A cassava.

He said, “I produce hand sanitizers, carwash, body wash, and hair growers, all from vitamin A cassava. We are working on the sweetening for food seasoning.

At the moment, the market is not big because people are not buying in bulk; I get only small orders from hospitals and super markets in the state. They buy once in two months. I use at least 60 per cent of vitamin A cassava in making the products. I need big machines to automate the process, and it is a skill that can be transferred to others.”

He said his work is domiciled at the technology incubation center, in Akwa Ibom, where scientists advise him on processes, standards and quality assurance, noting, “I am well guided in what I do. The scientists are helping me with the lab tests to ensure my products meet requisite standards. I am working to ensure that I get NAFDAC and SON clearances on the products soon. I believe that other than the fight against nutrition, we need to address matters of hygiene.”

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Global Per Capita Fish Consumption Rises above 20 Kilogrammes a Year Nigeria’s fish farming output rises 20-fold Crusoe Osagie with agency report With consumption in Nigeria and other parts of west Africa rising reasonably, global per capita fish consumption has risen to above 20 kilogrammes a year for the first time, thanks to stronger aquaculture supply and firm demand, record hauls for some key species and reduced wastage, according to a new Food and Agriculture Organisation (FAO) report has said.

Yet despite notable progress

in some areas, the state of the world’s marine resources has not improved, the latest edition of the UN agency’s The State of World Fisheries and Aquaculture (SOFIA) said that almost a third of commercial fish stocks are now fished at biologically unsustainable levels, triple the level of 1974.

Global total capture fishery production in 2014 was 93.4 million tonnes, including output from inland waters, up slightly over the previous two years.

Alaska pollock was the top species, replacing anchoveta

for the first time since 1998 and offering evidence that effective resource management practices have worked well.

Record catches for four highly valuable groups - tunas, lobsters, shrimps and cephalopods - were reported in 2014.

There were around 4.6 million fishing vessels in the world in 2014, 90 percent of which are in Asia and Africa, and only 64,000 of which were 24 meters or longer, according to SOFIA. Globally, fish provided 6.7 percent of all protein consumed by humans, as well as offering

a rich source of long-chain omega-3 fatty acids, vitamins, calcium, zinc and iron. Some 57 million people were engaged in the primary fish production sectors, a third of them in aquaculture.

Fishery products accounted for one percent of all global merchandise trade in value terms, representing more than nine percent of total agricultural exports. Worldwide exports amounted to $148 billion in 2014, up from $8 billion in 1976. Developing countries were the source of $80 billion

PARTNERING FOR SUCCESS

L-R: Manager, Mobile Financial Services, Oluwaseun Omotosho, Director, Digital Business, Adia Sowho, both of Etisalat Nigeria; Convener, eWorld Forum 2016, Aaron Ukodie; Etisalat Nigeria’s Head, Environment Compliance & Public Relations, Oluseyi Osunsedo and Manager, Public Relations, Chineze Amanfo at the eWorld Forum 2016 sponsored by Etisalat Nigeria in partnership with eWorld Magazine in Lagos … recently

Court Declares Ex-PG MWUN Food Security: IBM, Techplus Wanted over Invasion of Union’s Collaborate to Boost Secretariat Agriculture Nosa Alekhuogie An Apapa Magistrate Court has declared a former President General (PG) of the Maritime Workers Union of Nigeria (MWUN), Uzoije Ukaumunna wanted in connection with May 2016 attempted invasion and mayhem at the national secretariat of the union in Apapa, Lagos.

Ukaummunna was forced out of office by the federal government in 2002 as the union’s PG under controversial circumstances.

Ukaummunna’s arrest was ordered by Justice Olufolake Oshin of the Magistrate Court in Apapa. The warrant of arrest was dated 20th June 2016, in a suit number MISC|MCA|O17 2016. It was confirmed that the court made the order because the accused could not be found by the Police, even after a warrant of arrest was procured for him to be arraigned.

Similarly, the Police also last week arraigned a man, identified as Maurice Fangnon, who was alleged to have collaborated with Ukaumunna in the mayhem.

Ukaumunna was alleged to be the lead mastermind of the

mayhem that took place at the union’s national secretariat in May, 2016. Four of those who allegedly participated in the mayhem had earlier been arrested and arraigned by the police.

Fangnon, who is reportedly from Benin Republic, was arraigned last Wednesday in the same court on four count charge of conspiracy, disturbance of public peace, unlawful possession of weapons and attempt to attack on members of the Maritime Workers Union of Nigeria. According to the Police prosecutor, the charges levelled against Fangnon contravened sections 410, 44, 51 and 166d of the Criminal Law of Lagos State 2011.

The charge sheet, a copy of which was obtained by our correspondent further states that: “ you Maurice Fangnon ,M and others at large on the 31st of May 2016 at about 1030hrs, at No. 199 ,Osho Drive, Olodi Apapa,Lagos Magistrate District ,did conspire together to commit misdemeanour to wit: unlawful assembly and thereby committed an offence punishable under section410 of the criminal law of Lagos State of Nigeria.”

Crusoe Osagie As part of efforts to ensure food security in Africa through technology, IBM in collaboration with the organisers of #TechPlus2016 is set to host programmers, developers to the first of its kind three-fold event focused on Africa’s agricultural sector.

Tagged ‘Hack-Pitch-Code’, the event will bring together computer programmers, developers and hackers to deliver technologically driven novel solutions to agricultural challenges in Africa during the conference.

The code festival is targeted at both students and non-students who will be expected to creatively crack a given brief utilising new technologies that will debut at #TechPlus2016.

The solutions are expected to capture challenges of agricultural production, processing, promotion and distribution in Africa.

Developers will be hosted at the IBM Innovation Centre in Victoria Island, Lagos, creating a conducive environment for teams to come up with forward-thinking and creative

solutions for agricultural production, processing, promotion and distribution.

Talented teams will present their solutions and designs to professional coders and key industry partners who will assess their viability.

Winning groups will be awarded a sum of #1million in form of scholarship or funding.

Selected finalists will also receive training and mentorship, job opportunities, business and idea structuring and other valuable resources.

The jury is composed of key ICT personnel such as Helen Anatogu, CEO iDEA; Chinenye Mba-Nzoukwu, CEO Infographics; Pelumi Adeniran, CEO HTS; Tobi Oke, Intel; Karthik Noornie, CIO Olam Group and Rodney Williams, Founder LISNR. The hackathon event will present the African agricultural realities and challenges to participants, assist in team formation, brainstorming, concept design and development, validating and prototyping.

The final phase will see development of pitch ideas, presentation and award ceremony.

of fishery exports, providing higher net trade revenues than meat, tobacco, rice and sugar combined.

“Life below water, which the Sustainable Development Agenda commits us to conserve, is a major ally in our effort to meet a host of challenges, from food security to climate change,” FAO Director-General José Graziano da Silva. “This report shows that capture fisheries can be managed sustainably, while also pointing to the enormous and growing potential of aquaculture to boost human nutrition and support livelihoods with productive jobs.”

That the global supply of fish for human consumption has outpaced population growth in the past five decades - preliminary estimates suggest per capita intakes higher than 20 kilograms, double the level of the 1960s - is due in large measure to growth in aquaculture.

The sector’s global production rose to 73.8 million tonnes in 2014, a third of which comprised molluscs, crustaceans and other non-fish animals.

Importantly in terms of both food security and environmental sustainability, about half of the world’s aquaculture production of animals - often shellfish and carp - and plants - including seaweeds and microalgae - came from non-fed species.

While China remains far the leading nation for aquaculture, it is expanding even faster elsewhere, the report notes.

In Nigeria, aquaculture output is up almost 20-fold over the past two decades, and all of sub-Saharan Africa is not far behind. Chile and Indonesia have also posted remarkable growth, as have Norway and Vietnam - now the world’s No. 2 and No. 3 fish exporters.

Aquaculture’s strengths and challenges are also influencing what fish end up on our plates. The report shows that, measured as a share of world trade in value terms, salmon and trout are now the largest single commodity, an honor that for decades belonged to shrimp.

Some 31.4 percent of the commercial wild fish stocks regularly monitored by FAO were overfished in 2013, a level that has been stable since 2007.

FAO’s methodology is consistent with international agreements stating that fish stocks should be maintained at or rebuilt to a size that can support Maximum Sustainable Yield (MSY). Thus, stocks are classified as being fished at biologically unsustainable levels - overfished - when they have an abundance lower than the level that can produce the Maximum Sustainable Yield.

Stakeholders Alarmed by Increased Smuggling of Rice Rice stakeholders have expressed concerns over the increased activities of rice smuggling at the nation’s porous borders, noting that the ugly situation poses threat to local investment in rice production in Nigeria.

The stakeholders told journalists in Lagos that smuggling also threatens millions of job opportunities that had been created by local investment in the nation’s rice industry.

The stakeholders that rice is being smuggled into the country through the nation’s unapproved and porous borders, maintaining that the high rate of smuggling activities has resulted in loss of revenue for the nation and local investors in the industry.

They added that as a result of smuggling, lots of jobs and new businesses are springing up in neighbouring countries like Republic of Benin, Niger Republic, and Cameroon because of the increased activity in smuggling of rice at the nation’s sea ports and borders.

According to the rice dealers, the concessionaires of Nigerian seaport are laying off staff massively while operations of shipping and clearing agents, transporters, and other service providers have grounded to a halt in the past one year.

Executive Director, Nigeria Agriculture Development Watch, Dr. Johnson Idowu, lamented that shipping lines and many other businesses are pulling out of Nigeria.

In his words, “The ripple

effect of rice smuggling into the country would lead to a mass laying off of staff and redundancy.

Interestingly, the Minster of Labour will soon come on air to issue an ultimatum to these companies not to sack”.

Idowu noted that the federal government even contemplated the idea of opening the land border initially for the importation of rice, which he said was a colossal error of reasoning.

“Let us do some elementary geography. Nigeria is bounded in the North, West and South

by Niger Republic, Republic of Benin, and Cameroon respectively. None of these countries is a rice producing nation per se. So what is the rationale behind opening the borders for rice importation from these countries. The only reason there is an increase in rice importation activities in these countries is because they have favourable tariff and policy for rice importation,” he said.

“On this premise, unpatriotic business men hitherto in Nigeria i.e. rice importers have since diverted their businesses to these countries. Whereas you may not blame them, opening the land border is to encourage them further to export rice to Nigeria from these countries.

Moreover, why would we want to continue to favour neighbours in terms of job creation and revenue generation from rice import rather that adjust our own policies in order to boost our own revenue generation, and to make businesses return”, he added

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T H I S D AY • TUESDAY, JULY 12, 2016

BUSINESSWORLD

PERSPECTIVE

Using the Right Instruments to Drive Ports Efficiency

Nigerian Ports Authority Francis Ugwoke For the nation’s ports industry, the federal government’s reform agenda appears to be an enduring project. The exercise started in 2006 when the terminal handling operation was taken from the Nigerian Ports Authority, NPA, and handed over to private investors under a concession programme. Since then, the federal government has continued to fill a lot of gaps left out during the implementation of the landlord port system in the country. Part of the reform was the appointment of the Nigerian Shippers’ Council, NSC, about two years ago as an economic regulator. With the appointment, the NSC which over the years had played the role of protecting the interest of shippers now has a wide range of statutory responsibility as an umpire promoting trade facilitation at the ports. Now father of all consumers and providers of shipping services, the ports regulator’s responsibility among others, is to ensure efficiency and transparency in the ports. In effect, the aim is to ensure that Nigeria stands a chance of becoming a hub port of preference among other ports in the neighbouring West and Central African sub-region. As part of this, the NSC recently launched the Standard Operating Procedures, SOPs, and the Port Service Support Portal, PSSP. This will go a long way in promoting trade facilitation in Nigeria in line with international standard. It is equally part of the reform programme in the ports.

SOPs and PSSP Both SOPs and PSSP are projects of the NSC under the Ministry of Transport. They are both instruments to ensure best international practices at the ports. SOPs followed the launch of Corruption Risk Assessment report by the federal government when a Committee chaired by the Ministry of Transport was set up in 2014. It is about instructions which clarify processes involving every stakeholder in port operation. It is a control measure to check various stakeholders in the ports. It is a guide to the trading public on expectations of every agency involved in port operation. On the other hand, PSSP, is a common place where stakeholders or consumers of services can lay their complaints in order to get redress. PSSP which can be accessed on www.pssp.ng is domiciled with the NSC which receives alert and attends to the complaints. It is an online portal where users of port services can interact

with providers of shipping services. Through this, everyone, including the Ports Regulator can understand the challenges that the consumers of any shipping services faces at every point in time.

It is a portal where confidential information is shared between the consumers and providers of shipping services during port operation. With the PSSP, any agency or shipper/individual can send their complaints to be addressed by the ports regulator.

Economic Benefits At the launch recently, the Vice President, Prof.

Yemi Osinbajo, stressed their benefits to the ports industry and to a large extent the national economy. The SOPs and PSSP, Osinbajo said will remain instruments to check leakages as well as trade facilitation. He described SOPs as mainly to check corruption in the ports.

He said: “In the face of dwindling revenue from oil, the federal government is more than ever determined to prevent leakages, remove impediments to trade and investments, and making our ports more competitive by pushing its anti-corruption and economic diversification drive to a logical conclusion.”

To the VP, improved procedure in the ports was necessary as it will make trade easy in the country, adding that it was important for easy delivery for imported goods as well as for export goods to leave the country with ease. He said the SOPs and PSSP were in line with the economic blueprint of the federal government and described them as laudable and a major achievement in the effort by the Transport Ministry for efficiency and transparency in the ports. According to him, productivity can only increase only in atmosphere of transparency and efficiency.

Osinbajo expressed optimism that the two instruments will contribute in making Nigerian ports efficient, cost effective and competitive in such a way that Nigeria will be a regional Hub. He Commended the Ministry of Transport, NSC and the UNDP for their efforts in introducing the programme, and urged all stakeholders to ensure that the 48-Hour Clearance of Vessels and Cargoes was realisable, one of the reasons for introducing SOPs and PSSP. The VP also reminded the supervisory Ministry and NSC that it was not enough to have such integrity platforms, but the full implementation.

The vice president charged port sector players to do all that is required to achieve 48-hour clearance of vessels and cargoes, and to

make the nation’s ports efficient, cost effective and competitive to the extent of becoming a regional trade hub. He said: “Chief Executive Officers are hereby directed to send their Letters of Commitment on the Implementation of the SOP and the PSSP to the Honourable Minister of Transportation. The CEOs will be held accountable for any lapses, and of course, will be commended for the success and quality of services rendered by the personnel of their Agencies”.

He described the two platforms as technological instruments, and called for the use of technology in the fight against graft.

He said: “It is important to bear in mind that technology remains one of the most important ways by which we can control corruption aside from the consequences of ensuring that corrupt officials are made to face its consequences.”

During the launch, the Advisor, Peace and Development of UNDP, Mr. Takwa Zebulon, who represented the Country Director, Pa Lamin Beyai, assured that the agency was committed in its support for the government on the project.

He said that with effective system and enabling environment, Nigeria’s corruption perception index can improve positively. He added that with this Nigerian ports will not only render statutory services, but become the preferred hub for the sub-region.

Minister of Transport, Rotimi Amaechi , during the occasion explained that the initiative of drafting , adoption and harmonisation of SOPs of port operations was to enhance transparency and accountability. Amaechi said the platforms will bring about user friendly business environment in the ports for greater economic performance. He added: “The SOP is generally regarded as a work reference guide that informs the general public on the process map of each port agency and operator. It will thus guide customers on what to expect at the ports and what they need to do to received good quality services. The SOP helps to establish operational standards, fosters accountability and thus will serve as a corruption prevention tool.”

SOPs, he added, will minimise variation and promote quality through consistent implementation of processes or procedures within the organisation. He said this will happen even if there were temporary or permanent personnel changes.

“We are certain that unwholesome practices by service providers at the ports will be greatly reduced, if not completely eliminated. It will

become easier to detect culprits and defaulters and sanction them”.

“SOP and the PSSP will make openness and transparency in port operations mandatory and will serve as tools for mainstreaming compliance to set standards for assessing compliance to procedure in a transparent manner. Furthermore, adherence of all to the SOPs being launched today will enhance credibility and legal defensibility of actions emanating from the ports. It promises to make our ports competitive, creating the enabling environment for improved revenue.

“It is not contestable that having SOPs will contribute to knowledge management in the various organisations at our ports, as it would be used as part of their personnel work instructions and training programme, it is more important that the SOP can be used to achieve compliance with organisational requirements and governmental policies.”

The Executive Secretary, NSC, Mr. Hassan Bello, said the focus of the council as the ports economic regulator was to make sure that the nation’s ports were efficient. Bello said the Council was concerned about the dwell time of cargo in the nation’s ports, automation and all best practices. Automation, according to him, will limit leakages in revenue drive of the federal government at the ports as it will address the issue of corruption. Bello, a lawyer, called for legislation on SOPs and PSSP in the National Assembly for all agencies to know their roles and apparently take them more seriously. He assured that the SOPs will be enforced in the ports to achieve the desired objective of the federal government. Since the launch, freight forwarders have described both SOPs and PSSP as good for the industry. Deputy President of National Council of Managing Director of Customs Agent, Mr. Ben U Ndee said they will check corruption in the ports, if concerned agencies are compelled to comply. He described corruption in the ports as “shamelessly embedded in all agencies in the industry”. Former President of National Association of Government Approved Freight Forwarders, Dr. Eugene Nweke said freight forwarders were in support of both SOPs and PSSP because of their benefits to the industry.

Nweke said both technological platform will lead to proper accountability and speedy resolution of issues, and enjoined practitioners to embrace them as part of the fight against corruption and promotion of trade facilitation.

- Ugwoke, a journalist, wrote from Apapa

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T H I S D AY • TUESDAY, JULY 12, 2016

PROPERTY & ENVIRONMENT Concessionaire: Sullivan Chime Neither Sold nor Has Interest in Hotel Presidential, Enugu Former Enugu State Governor, Sullivan Chime did not sell the once-renowned Presidential Hotel in Enugu to his crony, neither does he have any interest in the prime property. The property is being restored and will be managed by Primeview Hotels Ltd., a special purpose vehicle (SPV) of the state government and some private interests, says Chuma Anosike, the vice chairman of Primeview, reports Bennett Oghifo

T

he sturdy property known as Presidential Hotel, Enugu was once an unmistakable landmark in the Southeastern part of the country.

Regrettably, as time went by, this exquisite property, owned by the Enugu State Government, lost its reputation for sundry reasons. Patronage slowed and it was shut down after a while to cut loses.

But then the government thought it was counterproductive to let the prime asset go to waste, which was the reason in opted for a concessionaire to manage the property.

in concert with others is acting out a script to deliberately smear the image of Primeview Hotels Ltd in order to achieve an ulterior objective.

He explained that “the project is delayed because the investors are waiting for the new government to appoint its representative to the company. The new government also needs to sign off on the new execution plan because of the foreign currency changes in Nigeria.

The third issue is that of the former Lessee whose agreement was terminated and had gone to Court.”

Recent allegations…

There are several allegations of wrong doing in respect of the concession agreement and state of the property. The recent allegations are by a politician in Enugu State, who was quoted to have said that the immediate past governor of the state, Mr. Sullivan Chime sold the property to his crony and that the premises has been left to rundown to the extent that herdsmen graze their cattle there.

A statement by Barrister Chuma Anosike, the Vice Chairman of Primeview, the SPV that owns the asset said their attention was drawn to a publication in a national newspaper (not THISDAY) of 30th June 2016 where a certain person (name withheld) made comments regarding the status of Hotel Presidential, Enugu, “all of which are false, malicious and totally unfounded.

“Ordinarily, we would have ignored same but for the underlying mischief which pervaded the entire article and its potential to cause disaffection within the populace.”

Current Status of Hotel Presidential Ltd… Since taking possession of the property, Primeview has spent over US$1 million (One Million US Dollars Only) on the following amongst other things; Conduct of Geological Survey; Conduct of Topographical Survey; Conduct of Structural Integrity Test on Building; Conduct of Environmental Impact Assessment; Complete Strip out of Pipes, Wires, etc in the entire Building; complete water proofing and refurbishment of Roof.”

He said, “To those who are knowledgeable about the international hospitality business, they would appreciate that a lot of preliminary work has to be done before visible activity on site will commence.

Following the strip out exercise, the existing structure may not paint a ‘pretty picture’ but it is a necessary part of the complete refitting and renovation which we are committed to executing in order to produce a truly worldclass Hospitality facility. Consequently, to the untrained eye, it may look like the doors, windows and sanitary wares have ‘been carted away’.

“As our partners in progress, we have engaged with the new administration in the State with a view to moving the Project forward as soon as possible.

“We remain confident that with the completion of our refitting programme, the once iconic property will not only recover its lost glory, it will become a reference point for hospitality in the South-East Zone and become a major revenue earner for the State which is a shareholder, and act as a catalyst to drive socio-economic activities in the state.”

Sale of Hotel Presidential…

The vice chairman said in order to set the records straight and avoid further dissemination of false and misleading information, “we wish to state as follows: Primeview Hotels Ltd is, by a duly registered title document, the Concessionaire of Hotel Presidential, Enugu and has been in occupation of the property since August 2013.”

The statement said, “We also find equally ridiculous the allegation that the Hotel was sold by the immediate past Governor, Barrister Sullivan Chime to his “crony”. A cursory investigation into the nature of the transaction that gave rise to the current Concession

Hotel Presidential, Enugu

Agreement will expose the ignorance and/ or deliberate mischief of the author.”

The Hotel Presidential, Anosike said was never sold, explaining that Primeview Hotels Ltd, the current concessionaire is a Joint Venture Company whose shareholders are; E-Hospitality Services Ltd (owned by private interests) and Hotel Presidential Ltd (owned by the Enugu State Government).

“No sale transaction ever took place nor was any contemplated as part of the agreement.

“Barrister Chime has no direct or indirect interest in either E-Hospitality Services Ltd or Primeview Hotels Ltd. Both companies are duly registered with the Corporate Affairs Commission and their corporate documents are easily accessible to anyone who wishes to inquire.

“Without holding brief for Barrister Chime, as we are sure he is well able to defend himself, at no time during the negotiation

or thereafter did he solicit or demand for any stake in either company or any personal benefit for himself.

“Again, we are at a loss as to why a responsible person would seek to publish such deliberate falsehood.”

On herdsmen, Anosike said, “The property is and has been under the control of our security personnel and at no time since we took possession of the property has the hotel premises been used by herdsmen for grazing of cattle. This is a most preposterous allegation as a visit to the hotel premises will confirm this fact.

“We therefore wonder why the author would choose to make such a wild, baseless and tendentious statement, especially given the sensitivity of the issue of rampaging herdsmen who have recently caused so much carnage and grief in Enugu State. The only logical conclusion is that the author on his own or

Abuja Housing Show to Promote Green Housing

T

he 10th edition of the Abuja Housing Show is set to introduce a new dimension to the quest for affordable housing delivery, by dedicating quality time to promoting green housing revolution in Nigeria.

The coordinator of the annual epoch making event, Festus Adebayo, who is also the Chief Executive Officer of FESADEB Communications Limited, disclosed this in an exclusive chat with some select journalists in Abuja.

He said that considering the mountainous challenges Nigeria has in the energy sector, Green housing, an act of using renewable energy sources to provide energy solutions to households, completely independent of the national grid, can be popularized to come to the rescue.

Adebayo stated that the Abuja Housing Show, that has become a reliable solution hub for both government and stakeholders in the built environment, is poised to introducing innovations meant to bolster efforts of government towards developing policies that will ensure sustainable

housing delivery.

He also said that the Housing show, being an effort of the organized private sector, with commitment to creating synergy for the urgent solution needed to solve the staggering over 18 million housing deficit in Nigeria, has received the endorsement of the Minister of Power, Works and Housing, Mr. Babatunde Fashola, who is also billed to be the Chief host.

He noted that the event will provide an opportunity for both policy makers and stakeholders to interact, and proffer solution to the plethora of problems that have bedeviled the sector over the years . He also added that the private sector will have a rare privilege of telling the government exactly what the sector lacks, as well as sharing ideas that have helped housing delivery in other climes.

On the backdrop of similar programmes that have been organized for the development of the housing sector, without achieving the desired results, he said that Abuja housing show stands out as not just an ordinary talk show, but a one stop shop for novel ideas,

innovations and pragmatic platform that synchronizes the position of government and stakeholders.

The major areas of focus during the event include; the modalities for accessing funds for affordable housing delivery, the practicability of financing low cost housing for the low cadre and average income earners in Nigeria.

Other issues of concern, which the event is poised to address, are how to evolve a mechanism for creating a building technology that is suitable for our economy and heterogeneous society .

Abuja housing show is also said to be prepared to address the challenges encountered by developers who are made to pass through many needless processes to get land titles and other documents that will be tenable in law for business transactions.

According to the organising secretariat, over 10 countries have already registered for the show, while about 200 exhibitors are already jostling for spaces to showcase their goods and services.

The event which is set to attract over 40

members of the National Assembly as well as other dignitaries is said to provide a forum for unifying purposes towards articulating a formidable force needed to sponsor a legislative bill that will seek to create more enabling ground for affordable housing in Nigeria.

Taking a further step to prove that the show is not just a jamboree, the organizer has disclosed that experts are expected from the United States of America, South Africa, the Netherland and other countries whose expertise shall provide Nigeria developers a ground and experience to leverage on.

Another unique innovation apart from the green house revolution which the events is set address, is the rent to home programme which the organizer have invited a foreign group that will discuss the model and the operational possibility in Nigeria.

One other side attractions that is said to inject a sense of enthusiasm on the participants of the events, is the modalities worked out by the organizer to give up to 5 percent discount to all transactions during the show.

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T H I S D AY • TUESDAY, JULY 12, 2016

PROPERTY & ENVIRONMENT

Akintunde: Awareness Level of Facility Management has Grown Significantly Awareness of the economic benefits of good facility management structure in public and private establishments has improved significantly in Nigeria in the past five years, says Femi Akintunde, MD/ CEO of Alpha Mead Facilities & Management Services Ltd (AMFacilities). In this interview with Bennett Oghifo, he discusses the positive role his company in the awareness drive, the theme of the World Facilities Management Day, being commemorated today, and the hosting by his company of top business decision makers at an annual Nigerian Facilities Management Roundtable. Excerpt Tell us about the concept of the upcoming annual Roundtable and what it hopes to achieve…

The Nigeria FM Roundtable is a global FM industry event which we have re-enacted in Nigeria to coincide with the World FM day. It’s an event that has been earmarked to achieve greater awareness about FM practice worldwide, celebrate achievements of facility management companies, and educate the market more about new trends and development in the practice of FM; which will help them understand better how to engage the facility management services for their various uses, be it a private or corporate entity. This is the purpose of the world FM day. In Nigeria, Alpha Mead Facilities started this initiative in 2011. We were the first to actually create the awareness of the world FM day in Nigeria. But today, a lot of other entities have also joined the initiative. We now have virtually every FM Company doing something in their own way, some organize seminars, others have talk shows, media interviews, and so on. The Nigerian FM roundtable is one program that Alpha Mead Facilities have created and it has helped significantly to improve the awareness of FM. The roundtable also affords us the opportunity to celebrate with our clients and other industry players, where we invite between 100-150 professionals every year to this event, which is fully sponsored by us, and I must say that it’s an initiative that has been well embraced by the market and the industry at large.

In the past four years, Alpha Mead Facilities has been responsible for the Nigerian FM Roundtable what would you say is your biggest achievement so far?

Like I said, the FM Roundtable is an initiative we presented to the FM industry in Nigeria to achieve the entire objective set out for the World FM Day. I can confirm to you that those objectives have been met to a large extent. The awareness level of facility management has grown significantly in the past five years. More people, more corporate organisations and even government are now very aware of what facility management means and what value our activities add to their business operations.

The increasing activities in the industry and the growing needs for strategic business support services like FM has laid a lot of frequently asked questions to rest. Today, hardly

does anyone ask the questions of: how does outsourced FM services compare with the in-house FM team? What are the peculiar challenges that organizations or establishments face with FM provider? There are so much information and knowledge that have taken care of these issues. One of the ways we have checked this is the volume of calls or requests for FM services that have significantly improved.

This year, the Nigerian FM Roundtable will centre on the theme; Empowering People for a Productive World, how do you think Facility Managers can help their clients reach maximum productivity level?

When you talk about productivity, people most times relate it to the workplace, but it clearly goes beyond that. Let’s consider what we refer to as the quality of living, for example. It has multiple dimensions: the level of comfort, the safety of the occupants, and security of the assets and environment. These go a long way to address the state of mind with which people work. Let’s start from where you live. If you live in an uncomfortable environment, your body and soul cannot be in good alignment to be able to focus and do a good job when you get to work. So, your productivity actually starts from where you live; the condition of your residence. If you sleep at night and there was no light and you are bitten all through the night by mosquito, when you wake up in the morning you will be disorientated and your mind cannot be focused. Then, you get out on the road and the condition of the road is so poor – there is traffic, potholes, your vehicle is battered and so on; you will surely get to work worn out. When you get to work, then you have challenges getting from the ground floor to your office because the elevator is malfunctioning; you struggle to get into your office, then power begins to fluctuate, the air condition is bad, and you decide to use the bathroom, only to discover that it sticks horribly. Then you settle down to work, the security environment is not anything to write home about, you have distractions here and there due to poor access control to the building; and even the lighting of the office is so bad, you have to strain your eyes to read. If you put all these together, who can function optimally in such situation? So, what does FM do to engender productivity?

The first thing is that FM takes care of all the issues that I listed earlier. Just flip the same scenarios; people wake up from

of the theme for this year’s FM Roundtable. At another level, Facilities Managers can also help organizations reach productivity through improved work efficiency, and transparency of cost management, with respect to business support services. This runs on the premise that when efficiency is enhanced, cost improvement can be achieved, value will be enhanced, and all these will impact the business bottomline. When the bottom-line is impacted, the organization will have enough money to reinvest in providing efficient enabling physical work environment for their workers and everybody can feel the positive impact of an efficient FM in that form.

So, effective FM helps you to improve preventive maintenance system and reduce the frequency of breakdown, which is a very expensive situation.

of the property market is not expanding as expected, what could be responsible for this?

The first challenge I see is the inability of FM operators being able to manage the business as an enterprise. I think, from what I have seen in the industry, managing an FM business should not be different from managing any other business.

Therefore, the competency you need goes beyond being a professional that can do the work. You must also be able to do it profitably and run the business as a growing concern.

A lot of FM companies have not been able to grow their capacity to that level, they lack proper structure – in terms of the organisation’s structure, having the right people to work in that structure, creating the right processes, and systems, and supporting them with the enabling technologies that are key ingredients required to manage an FM business in a sustainable manner. A lot of FM companies do not invest adequately in this and when you don’t invest in capacity, you cannot grow for the challenges of the future. This inability to run FM as a business also impacts the confidence of the customers, because the large corporates would only give business to organisations that have the capacity to run and deliver services as if they are delivering it in their core business. These large corporations expect you to deliver FM for them, to meet their objectives and align with their other processes. But unfortunately only few FM companies are structure that way.

Despite being perceived as a major contributor to the growth of the real estate industry, feelers are that the Facility Management segment

The deteriorating nature of the country’s public infrastructure is one area that currently needs the attention of Facility Managers. However, not much

Akintunde

comfortable and safe houses, get on good roads to the office and the office environment is enabling enough; then it gives to reason that productivity will increase. So, what we are saying with this theme this year is that we want to focus on how to empower FM to empower the people they serve, so they and the people they serve can be very productive. If you take Nigeria for example, if the roads are in good shape, people can get from one point to the other in good time; this will in turn stimulate economic activities. If given our situation with power and other public infrastructure, Facilities Managers can ensure 100 percent availability of critical equipment; people will be more productive and businesses will become more profitable.

If as a country, we decide to give adequate attention to the much desired infrastructure overhaul of our healthcare system, education, etc; more jobs can be created, more people can be empowered, and our economy can be better for it. These are the dimensions

effort is seen on the part of government to effectively manage these assets, what could be responsible for this?

When we look at infrastructure, we have what we call the social infrastructure and economic infrastructure. Both of them must work hand in hand to provide a vibrant economy for any country. Social infrastructure will include things like good hospitals, good educational institutions, good legal system, good law enforcement agencies such as Prisons, police, all those constitute social infrastructure and they complement the economic infrastructure. When you look at how well we have fared with our social infrastructure everyone admits that there is still more work to be done. Without good educational systems for example, how do we develop talent for the future? Without good hospital how do you keep a healthy workforce? Without good law enforcement services, how do you ensure good security? How do you have a legal system that both local and international investors can trust? If we critically examine this, this entire infrastructure set up require physical and enabling work environment: the buildings or assets where these systems will operate. You need facility managers to support from this perspective. Go out today to most of the government ministries at both State and federal and local government they are dilapidated, how do you expect people to function effectively in those environment and have very clear mind to be productive and do their job professional? It’s difficult. If we cannot have all these questions stated earlier answered honestly, people productivity, business profitability and economic prosperity will be negatively impacted.

Haven Homes Names Street After 2Face Musical artiste and brand ambassador of Haven Homes, Innocent Idibia, better known as 2face, received more honours recently with the naming of a street after him in a high profile Lekki Estate.

The street named after him is in Richmond Gate Estate, which is located after Ikate Elegushi on the Lekki corridor. The Estate is the flagship project of Haven Homes, the connoisseur, developer and promoter of life style homes in Nigeria.

In a statement issued by the firm, its Managing Director/ Chief Executive Officer, Mr. Tayo Sonuga disclosed that the main reason behind the honor was under pinned by their principle

to celebrate legends when they are still alive, “we need to celebrate our own legends when they are alive and not after they are gone and we shouldn’t place foreign icons above ours. There is no one who will dispute the fact that 2face has done so much to Nigeria and Africa at large through his popular music genre. It is an honor 2face absolutely deserves.

We are indeed humbled that it is coming from us”.

The 2Face street naming has been a topical issue on many blogs recently especially on Nairaland where it was first featured. The Nairaland forum with 1,603, 694 members and 2,917,202 topics has been be-

sieged with various reactions to the development with many applauding it as “well deserved” while one ecstatic respondent exclaimed that he even “deserves a stadium!”

In acknowledging the honour, 2Face replied in a simple terse, “I appreciate the honour very much.”

Rapidly expanding at the turn of each new day with 24 units added at the end of May, Richmond Gate estate currently has 80 units of houses beautifully conceived, designed and crafted in an aristocratic manner that has become the hallmarkof Haven Homes’ brand in the last ten years. A unit carries

a price tag from upwards of N75million depending on the specifications, finishes among other considerations.

In the last ten years, haven Homes has consistently come up with fascinating ad innovative new home designs for each year, with the next design in line being the 2017 model in view due to be delivered over the next six months.

Aside 2Face who is a proud resident of the Estate, several other celebrities have been attracted to the “Colony of celebs”, as Haven Homes succinctly puts it, in recent times, including popular comedian AY, Tiwa Savage, among others.

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PROPERTY NEWS

Mercury is Dangerous to Environment, Says Confab Mercury is recognised as a chemical of global concern due to its ability to transport in the atmosphere, bio-accumulate in ecosystems and significant negative effect on human health and the environment.

This is contained in the communiqué issued at the end of a two-day workshop on ‘Phase Down of Amalgam-The Alternatives,’ to mark its 10th annual scientific conference of the Faculty of Dental Sciences, College of Medicine, University of Lagos, recently.

During the meeting, participants observed that the Minamata Convention on Mercury, signed by Nigeria in October 2013, stipulates measures to be taken by parties to phase down the use of dental amalgam in oral health.

They also noted the low level of awareness among Nigerians on the dangers of mercury; the continued and wide usage of dental amalgam in Nigeria; limited number and distribution of dental clinics and centres to provide services for the nation’s teeming population; and the inadequate number of dentists and other auxiliary personnel to provide dental services to patients.

Other observations were that alternative direct restorative materials, such as composite, compomer and ceramics could be used for restoration of carious and posterior teeth based on specific selection criteria and indications.

Also, that most government pediatric dentistry units have long stopped the usage of

dental amalgam also due to other associated reasons.

The forum brought together over 140 participants drawn from Government, medical/dental, dental associations, practitioners (doctors, nurses, technicians, therapist etc), academia, finance, pharmaceutical industry, media and civil society groups, among others, and deliberated on phasing down of dental amalgam use in Nigeria.

In his opening words, Dean, Faculty of Dental Sciences, College of Medicine, University of Lagos, Prof. Godwin Arotiba said, the phasing down of dental amalgam is an issue of global importance that requires an urgent national action. He further noted that a road map for dental amalgam phase down for Nigeria Dental institutions; draft action plan for mercury free dentistry implementation are expected as outcomes of the conference’.

The Minister of Education, Mallam Adamu Adamu, represented by Mrs. Stella Olagunju, commended the organisers on a very important topical issue on the phase down of Dental Amalgam and stated the willingness of her ministry to accept the decision on dental curriculum change in Nigeria with emphasis on phasedown from dental amalgam use to Mercury-free alternatives into the National education curriculum.

On the other hand, the Vice Chancellor of the University of Lagos, Prof. Salman Bello, represented by Prof. B.O. Sylva, noted that the Faculty of Dental Sciences remains the pioneer Dental Institution in Nigeria

and as a centre of excellence in dental practice, it is more strategic to the promotion of Dental amalgam phasedown initiatives for dental practice in Nigeria. He further stated that the University of Lagos currently has facilities for scientific research and analysis to support the phase down programme.

The Federal Ministry of Environment representative (Mr Olubunmi Olusanya) who stood in for Dr Idris Goji noted that mercury emission and releases poses health and environmental concerns and

although satisfactory alternatives to dental amalgam are available in Nigeria. He further called for a national road map in line with the national phase down plan which would help to save lives. The Representative of the National Agency for Food and Drug Administration and Control (NAFDAC) Dr. Anthony Hotton noted that NAFDAC regulates the importation, Sales, Use, Manufacturing and Distribution of chemicals which are grouped as General, Controlled or Restricted chemicals.

He stated the mercury and its

compounds are placed under restriction due to its health impact. Hence, there are calls for the need for a National Action Plan (NAP) and goal setting for monitoring companies and also inter-phasing with dental practitioners to eliminate or phase down amalgam use in Africa.

The keynote speaker, Prof.

Adeyemi Oluniyi Olusile, a past President of National Dental Association (NDA) and presently the President of African Regional Organisation of World Dental Federation (FDI),

outlined the effect of mercury on the environment and health, especially occupational exposures. He strongly called for the inclusion of dental amalgam alternatives filling materials in the National Health Insurance Scheme in Nigeria. He further stated that curriculum changes into dental amalgam alternatives is already in place in some institutions like LUTH, University College Hospital, Ibadan, Lagos State University Teaching Hospital (LASUTH), Obafemi Awolowo University and other schools.

L-R: Managing Director, Safetrust Mortgage Bank Limited, Mr. Yinka Adeola; Chairman, Mr. Akin Opeodu; Company Secretary, Mrs. Omolara Pedro; Director, Mr. Femi Adeyanju; and Executive Director, Mr. Akintayo Oloko, at the annual general meeting of the mortgage bank in Lagos… recently

Bio-Safety OPIC Advises Prospective The Dynamics of Architecture National Seeks Collaboration with Buyers of Land to Conduct in Contemporary Society EHORECON on Pollution Checks Wan Shu. He is the first Chinese Control Charles Maduka Estate practitioners, industri- terms alone, he said. “Anyone citizen to win the award .Wan alists and other prospective who genuinely proves to have 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

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.

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.

OPIC is thus undertaking ratification exercise on punitive

unwittingly purchased land from illegal land grabbers would be required to ratify such, paying a penal rate of 25% premium on OPIC’s prevailing rates.”

In addition, OPIC is introducing a registry for building material suppliers on its Estates to have proper monitoring.

On the development of illegal structures at OPIC’s Agbara Estate, Odusolu directed the enforcement team of the organisation to embark on a full scale demolition exercise of all structures illegally built on lands in OPIC Estate, Agbara/Igbesa. The team had previously marked for demolition, structures built on such illegally acquired lands and others flouting the Corporation’s allocation and planning regulations.

The Managing Director gave this order during an official tour of OPIC Estate, Agbara/ Igbesa where he inspected area 1 (Jubilee Park/residential area), Areas 2 and 3, and the Agbara – Ijanikin Lagoon link.

He condemned the activities of illegal occupants/private estates, block making industries and illegal trailer parks, which are considered as serious sources of revenue leakages and economic sabotage in the State.

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INTERNATIONAL

email:foreigndesk@thisdaylive.com

Buhari Appeals to South Sudan’s Warring Factions to Embrace Peace Tobi Soniyi in Abuja

President Muhammadu Buhari has appealed to the warring factions in South Sudan to give peace a chance. Buhari, who made the call while receiving the African Unity (AU) envoy on the Peace Fund, Dr. Donald Kaberuka also said that Nigeria would fulfil its financial obligation to the African Union (AU), particularly on programmes and operations aimed at ensuring durable peace, stability and

security on the continent.

A statement by the Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu said the President is supporting peace operations, under the auspices of the AU, in several countries affected by conflict remained a foreign policy priority for his administration.

Despite competing priorities on security and the economic downturn in the country, the President assured the AU envoy that Nigeria would also play

a central role in seeking the European Union (EU) and the United Nations (UN) to strengthen their support for crisis-prone African countries.

The president used the occasion of the visit of the AU envoy to weigh-in on the situation in South Sudan and appealed for peace and calm in the country. ‘What is happening in South Sudan is extremely disturbing and it is a very dicey situation. ‘The AU leadership has a crucial

role in stabilizing the country and other African countries on the brink. ``What we can do urgently to stabilize South-Sudan is very important as African leaders meet in Kigali, Rwanda this month and later in September at the UN,’’ the president said.

In his remarks, Kaberuka said funding AU-led peace support operations, which had remained a challenge for member-countries was further compounded early

Heavy fighting erupted again in South Sudan’s capital yesterday a day after the United Nations Security Council told rivals President Salva Kiir and Vice-President Riek Machar to rein in their forces and end days of violence that have left scores dead. Reuters witness saw two helicopters overhead firing apparently in the direction of Machar’s political and military headquarters. Residents reported tanks on the street. A U.N. official said heavy gunfire had erupted around U.N. bases again.

The capital has been mired in fighting almost every day since Thursday when troops loyal to Kiir and soldiers backing former rebel leader Machar first clashed, raising fears of a slide back to a full-blown conflict after a two-year civil war.

It was not immediately clear who was leading the fighting or if either side was gaining the upper hand. The violence has raised concerns that Kiir and Machar, longtime political and military rivals, may not have full control of their forces.

There has been no official death toll but at least five soldiers died on Thursday and a Health Ministry source said 272 people, including 33 civilians, were killed on Friday. After a brief lull on Saturday, Sunday’s fighting appeared even more fierce.

“We urge an end to these hostilities and hope they (political leaders) will return back to taking up all the action points of the peace agreement,” Shantal Persaud, spokeswoman for the U.N. mission UNMISS, told Reuters by telephone.

She said gunfire had erupted on Monday around the U.N. headquarters in the Jebel area of Juba and also around a base near the airport. U.N. bases were hit by small arms and heavy weapons on Sunday. One U.N. Chinese peacekeeper was killed.

UNMISS said it was “outraged” by renewed violence in the world’s newest nation, which marked five years of independence from Sudan last week. South Sudan’s people remain mired in poverty.

...Fighting Erupts again in Capital

this year with the EU cut in its allocation to the AU Mission in Somalia by 20 per cent.

Kaberuka said the AU summit in Kigali was expected to agree on a roadmap of alternative

financing for AU-led peace support operations, including a proposal for African nations to fund 25 per cent of the Fund’s budget while UN contributes the balance.

North Korea Threatens ‘Physical Response’ against US North Korea’s military said yesterday that it will make a“physical response” to moves by the United States and South Korea to deploy the advanced THAAD missile defence system on the Korean peninsula.

The United States and South Korea said on Friday that the Terminal High Altitude Area Defense (THAAD) anti-missile system will be used to counter North Korea’s growing nuclear and ballistic missile capabilities.

The announcement was the latest move by the allies against the North, which conducted its fourth nuclear test this year and launched a long-range rocket, resulting in tough new U.N. sanctions.

“There will be physical response measures from us as soon as the location and time that the invasionary tool for U.S. world supremacy, THAAD, will be brought into South Korea are confirmed,” the North’s

military said in a statement.

“It is the unwavering will of our army to deal a ruthless retaliatory strike and turn (the South) into a sea of fire and a pile of ashes the moment we have an order to carry it out,”the statement carried by the official KCNA news agency said.

The North frequently threatens to attack the South and U.S. interests in Asia and the Pacific.

South Korea’s Defence Ministry spokesman Moon Sang-gyun warned the North not to take“rash and foolish action”. Otherwise, he said, it would face “decisive and strong punishment from our military.”

The move to deploy the THAAD system, which drew a swift and sharp protest from China, came a day after the U.S. Treasury Department blacklisted leader North Korean leader Kim Jong Un for human rights abuses.

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CRIME&PUNISHMENT

Okiro: Why 21 Senior Police Officers were Retired Dele Ogbodo inAbuja Following the recent retirement of top ranking police officers which has generated controversy, the Chairman of the Police Service Commission (PSC), Mr. Mike Okiro, yesterday justified the exercise.

About 21 top police brass were retired in a recent shake-up of the force.

He said the retirement was done to achieve an effective, efficient and best policing of the country.

According to him, it is the norm to retire any senior officer, who may

have issues of respect of authority when new appointments are made.

While calling for support for the new management team which was inaugurated in Abuja, Okiro said there was no need for the debate about the retired officers as its was done in good faith and in the interest of the force and the country In a remark, the Minister of Interior, Lt. Gen. Abdurahman Dambazau (rtd), urged the new management team of the Nigeria Police to focus on crimes, violence, insurgency in the North-east, Niger Delta and in any other parts of the country.

Meanwhile, the acting Inspector General of Police (IG), Mr. Ibrahim Idris, has urged the new management team to uphold the virtuous of service discipline in order to provide quality leadership to the officers and men of the force.

He however noted that the focus of the team must always be on countering organised crime like robbery, kidnapping murder, corruption, communal clashes, politically-motivated crimes and the farmers, pastoralists crisis.

The decorated Deputy Inspectors General of Police (DIGs) are: Shuaibu Gambo, who

will serve as DIG, Department of Finance and Administration; Joshak Habila, who will serve as DIG Department of Operations; Maigari Abbati Dikko, DIG Department of Logistics and Supply.

Others are: Emmanuel Inyang, DIG, Department of Training and Development; Ntom Chukwu, DIG, Department of Research and Planning; Folusho Adebanjo, DIG Department of ICT, Hyacinth Dagala, who will serve as DIG, Department of FCIID; and AIG Abdul Bube, who has been appointed to serve as AIG Force Secretary.

In Brief

Wike: We will Eliminate Criminality in Rivers Rivers State Governor, Nyesom Ezenwo Wike, has declared that his administration will continue its anti-cultism and anti-kidnapping war until all criminals are rooted out of the state. Speaking yesterday after he supervised the demolition of two hideouts of suspected cultists and kidnappers at Mini-Okukwu and Mini-Ihunwo suburbs of Port Harcourt, Wike also announced that an aggressive prosecution scheme for suspected cultists and kidnappers had been instituted by the administration. He said nobody would be allowed to slow down the pace of development in the state through criminal activities. The governor said: “We have zero tolerance for crime and criminality. We are determined to make this state safer for residents and investors. “Therefore, government will always take action on credible intelligence gathered by security agencies. We will root on the spots where criminals use as hideouts across the state.” Wike said the expanse of land reclaimed from cultists and kidnappers in different locations in the state points to the fact that the government must maintain the tempo. “We will not stop until these criminals stop disturbing our people. We will eliminate criminality in Rivers State as we have taken steps to prosecute suspected cultists and kidnappers arrested by security agencies,” he said. The governor called on residents across the state to support the state government and security agencies to maintain the tempo of the war on crime and criminality. He noted that credible information on the hideouts of suspected cultists and kidnappers will go a long way to making the state safer.

PFN Cries out over Kidnapping of Members in Cross River

NO HIDING PLACE FOR CRIMINALS

R-L: Rivers State Governor, Nyesom Ezenwo Wike; member representing Port Harcourt Constituency III at the state House of Assembly, Mr. Victor Ihunwo and state PDP Chairman, Felix Obuah, during the demolition of two hideouts of suspected cultists and kidnappers at Mini-Okukwu and Mini-Ihunwo suburbs of Port Harcourt....yesterday

Again, Gunmen Abduct Immigration Officer, Two Others in Lagos Chiemelie Ezeobi Barely four days after he was released from the kidnappers’ den, Mr. Peter Ofulue, an official of the Nigerian Immigration Service (NIS), was again kidnapped by some unknown gunmen on Sunday morning when he was preparing for thanksgiving in his church.

Ofulue, who is attached to the Passport Control Office, Ikoyi, was abducted at his residence at the Ishawo community in Ikorodu area of Lagos, alongside three other persons.

It was gathered that the situation has created heavy tension in the area as residents have started moving out for fear of being abducted.

While the identities of the two other kidnapped persons remained sketchy as at press time, Ofulue was kidnapped last week but was later released without any ransom paid.

It was also still uncertain if he was kidnapped by the same gang that facilitated his earlier abduction, or by another gang of kidnappers operating in that axis.

A family member who spoke on account of anonymity said: “When he was released, we were very happy. We were in the village in Delta-State doing thanksgiving service when one of our brothers

called that he has been abducted again for the second time.

“He was cleaning his car for church service to also celebrate his release when four gunmen stormed our house and forcibly took him.

“I am still surprised that until now, his abductors are yet to contact us. His phones are switched off. We are afraid that something sinister will not happen to him.

“I am calling on the state Commissioner of Police, Mr. Fatai Owoseni to do something urgently to rescue our brother. He is the breadwinner of the family.”

A police source who also spoke on account of anonymity said: “We received reports that three persons were kidnapped during the weekend. The family of the immigration officer should look inward as there maybe insider connection.

“How come he was abducted last week, released and he is now abducted again and in his house.

If it is not insiders connection, it is either the hoodlums are living in the same area. Well, he should be able to know whether he offended anyone.”

However, a resident of the area identified as Tunde Omoleye said: “We are tired of living in this area.

Kidnappers are on the prowl in Ishawo area of Ikorodu. It is an

everyday’s affair.

“Everyday, one person is kidnapped either for ritual purposes or for ransom. Six of my friends who built houses in the area with me have all relocated.

Houses are being abandoned daily by landlords for fear of being abducted.

“As I am talking to you, I have contacted my brother in Ajegunle, Ketu to help me to help me look for accommodation. I need two bedroom apartment. I want to relocate my family.

“It is a shameful thing that we are being stolen like chickens daily.

There is no security. We have formidable vigilance group, but the kidnappers are more armed

than us.

“These are militants armed with sophisticated weapons and we can’t confront them. That is why we are begging the police, especially the Marine Police to come to our rescue.

“We are abandoning our houses we suffered to build and the houses are useless as they are of no economic value. Everybody is relocating, who will now rent the houses?”

Attempts to reach out to the state Police Public Relations Officer, Dolapo Badmos, a Superintendent of Police, proved abortive as she could not be reached on phone, neither did a visit to her office yield result.

Body Parts Syndicate Arrested in Bauchi The operatives of the Bauchi State Police Command have arrested one Maikudi Mohammed, 25, of Galambi village for possession of human head wrapped inside a cloth in Misau Town.

The state Police Public Relations Officer (PPRO), Haruna Mohammed, said preliminary investigation revealed that the suspect conspired with his accomplice, one Damina

Mohammed, 26, of the same address and went to a grave yard in Galambi village where they removed the head of a male corpse in order to sell it to their customer now at large.

Mohammed added that the principal suspect confessed that the child was his son who died and was buried but he later went back to the graveyard at night with his accomplice and exhumed it.

The Cross River State chapter of the Pentecostal Fellowship of Nigeria (PFN) has raised the alarm over what it described as the deliberate targeting of his members by kidnappers. Raising the alarm in Calabar yesterday, through a statement, the PFN said the latest victim and member of the body, Elder Patrick Obasse, was kidnapped in Calabar on Sunday. The statement issued by the state Chairman of the PFN, Pastor Lawrence Ekwok, read: “I can now confirm that a member of PFN, Patrick Obasse, of Foursquare Gospel Church was kidnapped yesterday (Sunday) morning on his way to the church.

He happens to be the District Convocation Committee chairman of his church for 2016. “The kidnappers are asking for 20million Naira ransom. This is a kidnap too many for my members. From every indication it appears that PFN members have become the target of kidnappers in Cross River State. “We refuse to be intimated.

That is why we have fixed August 1, 2016 for fasting and prayer to cry to our God from where cometh our help. “We are confident that our God will answer us. Please join us to pray for his immediate and unconditional release.”

I will Give Everything to Secure Cross River, Says Ayade

Cross River State Governor, Prof. Ben Ayade, has vouched to deplore everything at his disposal to ensure the protection lives and property in the state. Ayade gave the assurance yesterday in Calabar when he undertook the inspection of the deployment of security operatives at strategic places around the Calabar metropolis. This came barely 48 hours after he joined service commanders on Operation Show of Force, an exercise aimed at demonstrating the combat readiness of the joint military task force code named Operation Skolombo along major streets in the metropolis. He said: “We have responded fully to this challenge and I’m sure that we have seen sufficient signals that we are totally in control and fully in charge. The truth of the matter is that, if we have crisis in other states, visitors will probably still go there because of their oil and gas installations, but if we lose our tranquility, if we lose the name and heritage of Cross River State as a peaceful state, then we are gone. That is why I will give my right hand to protect that name, that integrity and warmth that we are known for.” Reaffirming his willingness to totally eliminate all forms of criminalities in the state, Ayade said: “Let me assure the good people of Cross River that I am the governor who leads from the front and that is why I physically do this every day and we are seeing drastic results. So, gradually we are beginning to see peace return, as we begin to see calm return, then I shall move backward and allow security operatives to take full charge.” The governor described perpetrators of the evil acts as enemies of the state who are bent on destabilising the beauty, peace, tranquility and panache that the people of Cross River and indeed, Calabar is known for He further stressed: “We can’t afford to have this happen.

We will go after them, we will pursue them like a chronic plague that they are and we are going to get them out of this state sooner than they expect.” Specifically, he said: “We have strong information as to their hideout; we have strong information as to their location. We do know that these people are not Cross Riverians, they are here to destabilise us and I would not allow that happen. As I said, we have specific instructions and clear directions, we have clear knowledge of the people, we are going after them and we shall go after them and we shall get them.” Offering insights into the enforcement of safety measures on Calabar waterways which have had its own bite of piracy and militancy activities in recent times, the governor explained: “I have just concluded an audit of the water ways; I am convinced and happy with what I have seen in terms of security distributions.”

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BUSINESS/MONEYGUIDE

IFC Invests $73.5m in Indorama Port to Boost Nigeria’s FX Inflows Obinna Chima The International Finance Corporation (IFC), a member of the World Bank Group has announced a $73.5million loan facility to OIS Indorama Port Limited, to support the development of a multi-purpose port terminal at Onne in Port Harcourt, Rivers State.

This would also serve as a platform for direct exports of fertilizer to foreign markets. The project is expected to generate critical foreign exchange and help the country diversify from dependence on crude oil exports.

The total project cost is $150 million. IFC is providing a $73.5million debt package

comprising a $52.5 million of its own funds and a $21 million parallel loan mobilised from a commercial bank. Rand Merchant Bank is providing an additional $31.5 million loan.

Indorama Port is located at Onne port, about 16 kilometers south-east of the Eleme Fertilizer plant. It includes a 295-meter multipurpose jetty, storage facilities suitable for fertilizer consisting of a 45,000 metric ton warehouse for urea with an automated material handling system. The port terminal will have the capacity to handle up to 2 million tons per annum of dry bulk urea exports, 12,000 twenty-foot equivalent units of containers and 150,000 pieces

of breakbulk cargo per annum; it will be compliant with the International Ship and Port Facility Security code.

The Managing Director of Indorama Nigeria, Manish Mundra, explained in a statement that the project will boost development in the maritime sector.

In addition, he said it demonstrates his firm’s determination to support economic development in Nigeria and help ensure the success of our investment in our urea facility.

Mundra added: “IFC, our long term partner, has worked with us extensively to invest and mobilise much needed foreign direct investment in the sector.”

BoI, NAICOM Explore Means to Derisk Lending to SMEs James Emejo in Abuja The acting Managing Director, Bank of Industry (BoI), Mr. Waheed Olagunju yesterday hinted that the bank is currently working with the National Insurance Commission (NAICOM) to provide a framework to boost credit to small and medium enterprises (SMEs) by having insurance firms provide cover for loans granted to the former.

He said about 10 insurance companies had already been shortlisted and agreed to collaborate on the new initiative.

Speaking to journalists in Abuja on the sidelines of the 2016 National insurance Conference, organised by the Insurance Industry Consultative Council (IICC), Olagunju said although the bank had always craved to expand lending operations to

small enterprises, they are often able to meet loan conditions.

He said: “So what we are trying to do now is to see how insurance companies can insure and protect the loans that we grant to SMEs such that those SMEs should pay premiums to insurance companies and that would secure the loans that we are granting to them.

“That’s what we are doing with NAICOM and in doing so, we are mindful of the health of several insurance companies; we would be working with NAICOM to ensure that we are dealing with insurance companies that can share risks with us effectively and efficiently so that when there are claims, they’ll be able to honour their obligations with the BOI.” He said the collaboration would further expand to cover assets

which the bank finance so as to have them insured against fire, theft, and natural disasters.

He said:”So the more viable enterprises that we are able to promote and support, the more the customers the insurance companies would also have-so it will be a win-win situation because if the customer is doing well and is able to honour his or her obligation to the BOI, then that same person will also be able to honour his obligation to the insurance company.”

Also speaking on the proposed collaboration between both institutions, Commissioner for Insurance/Chief Executive, National Insurance Commission (NAICOM), Mr. Mohammed Kari said prudential guidelines will be issued to insurance operators on the new arrangement as soon as all terms are understood.

Fitch Downgrades BoI to ‘B+’, Stable Outlook Nume Ekeghe Fitch Ratings has downgraded BOI’s long-term Issuer Default Rating (IDR) to ‘B+’ from ‘BB-’ and also assigned a support rating of ‘4’ from ‘3’ to the Bank following the downgrade of the Nigerian sovereign rating to ‘B+’ from ‘BB-’.

Fitch, in a statement yesterday, also assigned a stable outlook to the BoI, in line with the outlook on the sovereign.

The state-owned development bank BOI’s ratings, according to Fitch, are driven by and equalised with Nigeria’s sovereign ratings.

“The stable outlook on BOI’s long-term IDR reflects the stable outlook on Nigeria’s sovereign rating. BOI’s Long-Term IDR is at the bank’s Support Rating Floor

(SRF) of ‘B+’, which considers Nigeria’s ability to provide such support in a timely manner as and when required, as indicated

by Nigeria’s long-term foreign currency IDR of ‘B+’.

“Although the sovereign’s ability has weakened, particularly in foreign currency, support would still be available to a limited extent, given BOI’s relative size.

We also believe that the state’s propensity to provide support remains high, reflecting the state’s 99.9 per cent ownership, BOI’s policy role and the bank’s strategic importance to economic and industrial development.

“BOI’s funding is long-term and almost exclusively sourced from the Central Bank of Nigeria (CBN). BOI’s regulatory Basel II total capital adequacy ratio

stood at a healthy 47.3 per cent at end-March 2016 and its impaired loan ratio was 2.6 per cent. BOI’s National Ratings reflect the bank’s creditworthiness relative to the best credits in Nigeria.

“BOI is 94.8 per cent owned by the Ministry of Finance and 5.1 per cent by CBN. Fitch views BOI as a policy bank, reflecting its key role in the state’s structural and economic reforms, particularly in developing the non-oil sector.

The propensity to support is underpinned by the bank’s funding profile, as it is majority-funded by a N535 billion zero coupon bond due in 2025 issued to the CBN. “BOI is diversifying its funding but Fitch does not view this as a reason for any reduction in the likelihood of state support,” it stated.

Skye Bank Extends Decline to Record Low as Diamond Falls Diamond Bank Plc and Skye Bank Plc slumped for the straight third day after the Central Bank of Nigeria (CBN) stepped in to remove Skye’s top management a week ago.

Skye Bank plummeted 9.2 per cent to 79 kobo, a fresh all-time low by the close of trading, and Diamond Bank slid by eight per cent to N1.85,

the lowest since May 19.

Skye’s stock has fallen by 25 per cent since the July 4 intervention by the central bank, the worst performer over the period on the 171-member Nigerian Stock Exchange All Share Index this year.

The CBN replaced Skye’s chief executive officer, chairman and 10 other directors

on July 4, saying the steps were necessary after the Lagos-based bank’s liquidity and non-performing loan ratios consistently breached required levels. While the central bank moved to calm markets, saying Skye and the industry remained healthy, analysts highlighted fears of contagion.

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

MARCH 2016 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 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

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

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

OPEC DAILY BASKET PRICE AS AT FRIDAY 8, JULY 2016 The price of OPEC basket of fourteen crudes stood at $42.58 a barrel on Friday, compared with $44.18 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

43

T H I S D AY • TUESDAY, JULY 12, 2016

Nigeria’s top 50 stocks based on market fundamentals

11-July-16

8-July-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

Table 1 Market Statistics Mkt Indicators

Open 8-July-16

NSE All Share Index NSE Market Cap (N'Trillion)

28,854.98 9.91

28,813.51 9.90

-0.14 -0.14

118.74 9.25

118.66 9.24

-0.07 -0.07

01 Dangote Cement Plc

191.20

191.50

-0.16%

3,258,145,015,836.00

10.64

18.00

6.64

4.18%

5.06

02 Nigerian Breweries Plc

130.05

130.01

0.03%

1,031,179,570,484.40

5.37

24.22

3.73

2.77%

6.05

03 Guaranty Trust Bank Plc

24.00

23.00

4.35%

706,348,301,376.00

3.38

6.81

2.95

7.70%

1.64

852.10

850.00

0.25%

675,422,392,329.20

29.95

28.38

4.45

3.41%

17.73

05 Zenith Bank Plc

15.87

15.45

2.72%

498,262,356,383.82

3.37

4.59

1.12

11.65%

0.82

Table 3 Top 5 Gainers

06 Lafarge Africa Plc

60.45

63.65

-5.03%

275,343,814,414.50

5.93

10.74

1.08

4.71%

1.65

Stock

07 Ecobank Transnational Incorporated

14.75

14.75

0.00%

270,655,880,421.25

1.39

10.59

0.52

4.20%

0.72

08 Forte Oil Plc.

171.90

171.90

0.00%

223,896,501,605.70

4.45

38.64

1.80

2.01%

4.84

09 Seplat Petroleum Dev. Co. Ltd

330.00

330.00

0.00%

182,592,403,290.00

23.48

14.05

1.62

4.82%

0.65

10 United Bank for Africa Plc

4.57

4.46

2.47%

165,797,435,291.54

1.64

2.71

0.51

13.45%

0.49

11 Stanbic IBTC Holdings Plc

15.77

16.60

-5.00%

157,700,000,000.00

2.04

8.15

1.40

0.60%

1.48

5.40

5.50

-1.82%

156,211,046,807.40

2.28

2.42

0.47

10.00%

0.43

04 Nestle Nigeria Plc

12 Access Bank Plc 13 Guinness Nig Plc

101.00

99.99

1.01%

152,094,706,988.00

0.78

128.48

3.02

0.00%

3.37

14 FBN Holdings Plc

3.75

3.77

-0.53%

134,607,347,970.00

0.42

8.93

0.27

3.98%

0.23

31.80

31.80

0.00%

120,308,820,750.00

0.32

100.90

2.03

0.16%

15.03

16 7-Up Bottling Comp. Plc

142.05

142.05

0.00%

90,995,861,064.15

11.12

12.77

1.17

1.55%

3.79

17 P Z Cussons Nigeria Plc

22.70

23.00

-1.30%

90,129,828,921.50

1.10

20.96

1.26

5.65%

2.17

18 Oando Plc

7.45

8.05

-7.45%

89,657,910,760.30

0.50

16.11

0.17

9.32%

0.61

19 Dangote Sugar Refinery Plc

6.60

6.51

1.38%

79,200,000,000.00

0.96

6.77

0.77

7.68%

1.34

20 Julius Berger Nig. Plc

50.93

50.93

0.00%

67,227,600,000.00

1.85

27.55

0.50

2.95%

2.77

21 International Breweries Plc

19.00

19.80

-4.04%

62,590,736,320.00

0.64

30.98

3.53

1.26%

5.41

22 Total Nigeria Plc

181.48

181.48

0.00%

61,616,422,978.76

11.92

15.23

0.30

7.71%

3.79

23 Mobil Oil Nig Plc

169.00

169.00

0.00%

60,940,599,278.00

13.51

12.51

0.95

4.26%

3.97

21.50

21.51

-0.05%

56,421,099,520.50

1.84

11.68

0.17

9.30%

0.55

25 Transnational Corporation Of Nigeria Plc

1.45

1.60

-9.38%

56,145,446,266.25

0.05

30.50

1.52

0.00%

0.71

26 Diamond Bank Plc

1.85

2.01

-7.96%

42,846,719,590.80

0.24

8.23

0.21

0.00%

0.22

15 Unilever Nigeria Plc

24 Flour Mills Nig. Plc

27 Sterling Bank Plc

1.40

1.38

1.45%

40,306,585,376.40

0.36

3.86

0.36

6.52%

0.42

28 U A C N Plc

20.00

19.95

0.25%

38,417,287,740.00

2.70

7.39

0.52

5.01%

0.52

29 Presco Plc

37.00

37.00

0.00%

37,000,000,000.00

3.28

11.28

3.26

0.27%

1.65

1.14

1.18

-3.39%

33,017,347,688.88

0.48

2.46

0.23

13.56%

0.19

16.70

16.70

0.00%

31,365,974,068.00

3.21

5.21

0.93

7.78%

3.03

0.80

0.84

-4.76%

30,859,572,864.80

0.06

13.92

0.71

0.00%

0.70

31.50

31.02

1.55%

30,048,165,000.00

2.76

11.25

3.04

0.32%

2.45

1.38

1.42

-2.82%

27,327,740,877.78

0.24

5.91

0.18

7.04%

0.17

35 Glaxo Smithkline Consumer Nig. Plc

20.78

20.78

0.00%

24,850,313,420.64

0.81

25.75

0.81

1.44%

1.88

36 Cap Plc

35.00

35.00

0.00%

24,500,000,000.00

2.49

14.08

3.47

3.29%

16.12

37 Custodian And Allied Insurance Plc

4.00

3.90

2.56%

23,527,456,780.00

0.71

5.46

0.77

3.59%

0.88

38 Mansard Insurance Plc

2.16

2.27

-4.85%

22,680,000,000.00

0.16

14.34

1.44

2.20%

1.37

39 National Salt Co. Nig. Plc

8.04

7.85

2.42%

21,301,484,559.12

0.79

9.88

1.29

7.01%

2.93

40 Unity Bank Plc

1.02

1.07

-4.67%

11,923,124,700.84

0.54

1.97

0.20

0.00%

0.15

41 Continental Reinsurance Plc

1.13

1.15

-1.74%

11,721,201,072.56

0.21

5.57

0.60

10.43%

0.77

42 Skye Bank Plc

0.79

0.87

-9.20%

10,965,438,113.90

0.85

1.02

0.09

34.48%

0.09

43 Honeywell Flour Mill Plc

1.35

1.42

-4.93%

10,705,766,838.30

0.14

10.05

0.23

11.27%

0.53

44 Cement Co. Of North.Nig. Plc

6.99

6.99

0.00%

8,784,177,584.34

0.96

7.31

0.67

1.43%

0.87

45 UACN Property Development Co. Limited

4.00

4.00

0.00%

6,874,999,980.00

1.81

2.21

0.61

17.50%

0.21

46 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,126.00

0.10

5.16

0.94

6.00%

0.45

47 Nigerian Aviation Handling Company Plc

3.86

4.00

-3.50%

6,269,484,375.00

0.33

12.08

0.76

5.00%

1.07

48 Resort Savings & Loans Plc

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

49 AIICO Insurance Plc

0.73

0.74

-1.35%

5,059,049,270.40

0.28

2.68

0.16

6.76%

0.53

50 Fidson Healthcare Plc

2.06

2.15

-4.19%

3,090,000,000.00

0.50

4.33

0.39

2.33%

0.51

30 Fidelity Bank Plc 31 Cadbury Nigeria Plc 32 Wema Bank Plc 33 Okomu Oil Palm Plc 34 FCMB Group Plc

TOTAL

9,239,289,224,287.03

TOTAL MARKET CAP

9,895,983,056,075.95

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

93.36%

Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Close Change % 11-July-16

Open Close Change % 8-July-16 11-July-16

Guaranty Trust Bank Plc Zenith Bank Plc Custodian And Allied Insurance Plc United Bank for Africa Plc National Salt Co. Nig. Plc

23.00 15.45 3.90

24.00 15.87 4.00

4.35 2.72 2.56

4.46 7.85

4.57 8.04

2.47 2.42

Table 4 Top 5 Losers Stock

Open Close Change % 8-July-16 11-July-16

Transnational Corporation Of Nigeria Plc Skye Bank Plc Diamond Bank Plc Lafarge Africa Plc Stanbic IBTC Holdings Plc

1.60

1.45

-9.38

0.87 2.01 63.65 16.60

0.79 1.85 60.45 15.77

-9.20 -7.96 -5.03 -5.00

Market starts week on a bearish note as ASI declines 0.14% Market pulse on the Nigerian Stock Exchange (NSE) today – Monday, July 11, 2016 was bearish as the stock market closed red due to intense sell pressure. This was further highlighted by negative performances from the NSE Sub sectors: Consumer Goods, Insurance and Oil & Gas (save Banking). However, trading activities increased in volume as 275.36 million shares worth N3.44 billion in 4,865 deals exchanged hands today.

This is an increase from the 234.96 million shares worth N2.29 billion in 4,145 deals carried out on Friday. Topping in volume terms was Guaranty Trust Bank Plc, FBNH Plc and Oando Plc while Oando Plc and Guaranty Trust Bank Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed negative with a 0.14% (-41.47) decrease to close at 28,813.51 from 28,854.98 the previous trading day. Market Capitalization depreciated in tandem to N9.90 trillion from N9.91 trillion of prior trading day. Similarly, the Thisday BGL 50 Index followed suit with a decline of 0.07% to close at 118.66 from 118.74 recorded at the end of the previous trading day, while its market capitalization stood at N9.24 trillion from N9.25 trillion of the previous trading day.

A total number of 16 stocks gained on the bourse today while 30 stocks declined, 61 leaving stocks unchanged. Guaranty Trust Bank Plc emerged the day’s toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 4.35% to close at N24.00 per share. It was followed by Zenith Bank Plc with a gain of 2.72% to close at N15.87 per share. Others on the gainers list include: Custodian And Allied Insurance Plc, United Bank for Africa Plc and National Salt Co. Nig. Plc while on the decliners’ list; Transnational Corporation Of Nigeria Plc led with a loss of 9.38% to close at N1.45 per share. It was followed by Skye Bank Plc with a loss of 9.20% to close at N0.79 per share. Others on the losers list include: Diamond Bank Plc, Lafarge Africa Plc and Stanbic IBTC Holdings Plc. REQUIRED DISCLOSURE This report has been prepared by BGL Plc. BGL Plc does and seeks to do business with companies covered in its research reports. As a result, the firm may have a conflict of interest that could affect the objectivity of this report. Investors should use this report as one of many other factors in making their investment decisions.

For more details go to www.thisdaylive.com

T H I S D AY •TUESDAY, JULY 12, 2016

44

MARKET NEWS

Cement Stocks Close Lower as Investors React to Profit Warning Goddy Egene Shares on the Nigerian bourse closed lower yesterday as the bearish trend at the stock market continued. The market had declined by 1.54 per cent last week.

And when trading resumed for the week yesterday, the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.14 per cent to be at 28,815.32. Similarly, the NSE market capitalisation shed N14.2

billion to close at N9.8 trillion.

In all, 30 stocks declined compared with 16 stocks that appreciated. An analysis of the performance showed that the fall in the index mostly resulted from major sell-offs in cement companies, Lafarge Africa Plc and Dangote Cement Plc. Lafarge Africa went down by 5.0 per cent, while Dangote Cement shed 0.2 per cent.

Market analysts said the

profit warning sent by Lafarge Africa Plc last week jolted many investors who have reacted negatively.

Lafarge Africa Plc last Friday said its second quarter(Q2) financial results to June 30, 2016, would be affected by an unrealised foreign exchange loss of about N28 billion.

According to the cement firm, the Q2 results would be affected by the impact of the Naira

devaluation against the United States dollar (USD), resulting in an unrealised exchange loss.

“The impact of the naira devaluation is expected to be a N28 billion unrealised exchange loss arising from the USD borrowings, which at the time of the devaluation, consisted of $310 million shareholders loans and $85 million external loans. These loans relate to the United Cement Company of Nigeria Limited

(Unicem) and were mainly set up prior to the acquisition by Lafarge Africa of its original 35 per cent stake in Unicem.

Lafarge Africa has since then increased its stake in Unicem and held at the time of the devaluation, 50 per cent of Unicem which was fully consolidated.

Lafarge Africa now holds 100 per cent of Unicem. The N28 billion unrealized exchange loss will not have immediate

impact on our cash flow,” the company said.

The decline in the share prices of Lafarge and Dangote Cement made the NSE Industrial Goods Index close with a 2.1 per cent fall to lead other sectoral indices.

The NSE Insurance and Oil & Gas Indices followed with decline down 1.2 per cent, while the NSE Consumer Goods Index ended with a 0.07 per cent decline.

STOCK MARKET DAILY REPORT T H E

N I G E R I A N

STO C K

E XC H A N G E

T H I S D AY TUESDAY JULY 12, 2016

45

46

TUESDAYSPORTS

T H I S D AY •TUESDAY JULY 12, 2016

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

EURO2016: Hero’s Welcome for Portugal in Lisbon Four Selecao in tournament’s XI as Griezmann emerges Best Player

Portugal flew home to Lisbon yesterday to be greeted by thousands of fans chanting the name of their goal hero Éder, whose extra-time strike sealed their 1-0 victory over France in the final of the 2016 European Championship.

After travelling in a plane named after the late striker Eusébio, the coach Fernando Santos and captain Cristiano Ronaldo were greeted by rapturous applause from the 5,000-strong crowd as they lifted the country’s first major trophy aloft.

An open-top bus ride followed as the players met the President, Marcelo Rebelo de Sousa, who said he would honour them with an award for distinguished acts of public service.

“I have to praise everyone. I will commemorate them with the Order of Merit of Commanders – that is a decree that has never been given to the national team,” he told the broadcaster RTP. The former Portugal coach Luiz Felipe Scolari, who lost to Greece in the 2004 final hosted by Portugal, showered praise on the players.

“Portugal had deserved this European champion title since 2004. Sunday night, Portugal was able to get back the title that we lost in 2004,”he told Sport TV. Meanwhile, UEFA yesterday named French forward and tournament top scorer, Antoine Griezmann, as the Best Player of Euro 2016, a day after the hosts’

1-0 final defeat to Portugal.

“Antoine Griezmann was a threat in every game he played.

He works hard for his team and possesses technique, vision and quality finishing,”said UEFA Chief Technical Officer Ioan Lupescu, who led the panel that picked the striker.

Alex Ferguson, the former Manchester United manager, was among UEFA’s 13-strong panel of technical observers.

Atletico Madrid man Griezmann, 25, for whom Sunday’s defeat was a second major final loss in a month after the loss to arch-rivals Real Madrid in the Champions League, also won the Golden Boot award for his six goals.

He also had two assists in France’s run to the final, but had a rare off-night in front of goal on Sunday and was unable to haul the hosts to victory.

Griezmann and midfield schemer Dimitri Payet were included in the UEFA team of the tournament named Monday, as was Portugal skipper Cristiano Ronaldo, who was stretchered off injured and in tears after a crunching tackle by Payet.

Portugal defensive lynchpin Pepe was also included, along with fellow Portuguese goalkeeper Rui Patricio and Raphael Guerreiro.

There was no place for Gareth Bale, but Wales teammates Aaron Ramsey and Joe Allen, both midfielders, were named in the team of the tournament.

Dalung to Launch 2016 NCC Tennis League at the Ikoyi Club The Honourable Minister of Youth and Sports, Solomon Dalung, will on Thursday at the Ikoyi Club, Lagos launch the second edition of the NCC Tennis League Cup which offered over N25 million in prize money to winning teams last year.

It introduced 30 weeks of tennis to the Nigeria tennis calendar and there is every indication that the number of ties will double this year.

The launch which will take place at the tennis section of the club will feature draws for the 2016 edition, challenge matches by the top national players and a luncheon for invited guests.

Although the package and entries are yet to be unveiled, there are indications that the prize monies will be significantly increased in line with the promise of the Executive Vice President of the Nigerian Communications Commission, sponsors of the league, Prof. Umar Dambatta.

According to Director of the International Tennis Academy which originated and handles the project, Godwin Kienka, “the NCC Tennis League has been largely responsible for the significant rise in the standard of tennis in Nigeria with seven players now ranked by the Association of Tennis Professionals (ATP).

UEFA team of the tournament: Rui Patricio (POR); Joshua Kimmich

(GER), Jerome Boateng (GER), Pepe (POR), Raphael Guerreiro (POR);

Toni Kroos (GER), Joe Allen (WAL), Aaron Ramsey (WAL); Antoine

Griezmann (FRA), Dimitri Payet (FRA); Cristiano Ronaldo (POR)

Euro 2016 Champions Portugal (inside the front bus) mobbed in celebration by joyous fans in Lisbon yesterday

FIFA President to Begin Two-day Visit to Nigeria July 24 To meet Buhari, watch NFF/Zenith Bank Future Eagles Championship final FIFA President, Gianni Infantino, is to pay a two-day working visit to Nigeria from July 24, during which time he will be received by the country’s President, the Nigeria Football Federation (NFF) have announced.

Infantino will be accompanied on the two-day working visit by FIFA secretary general Fatma Samoura.

The Italian-Swiss, who was elected FIFA President at an extraordinary general assembly in Zurich on 26th February 2016, confirmed the trip following a meeting with NFF President Amaju Pinnick in Paris, France on Sunday.

“The FIFA President and Secretary General will arrive in

L-R: Trustee, Lawn Tennis Club, Mr. Tunde Oremule; President, Mr. Rotimi Edu; Chairman, Board of Trustee, Group Captain Ita David Ikpeme (rtd) and Trustee, Captain Yemisi Allan, during the inauguration of new Exco members of the club in Lagos…at the weekend

the Federal Capital Territory, Abuja on Sunday, 24th July on a two-day working visit to Nigeria,” Pinnick disclosed.

During the visit, Infantino and Samoura will pay a courtesy call on President Muhammadu Buhari at the Aso Rock Presidential Villa, hold meeting with a legion of African FA presidents who are expected in Nigeria to join the NFF to receive the FIFA top shots and attend an evening session with Corporate Nigeria in Lagos.

The FIFA bosses will also meet with Governor Akinwunmi Ambode of Lagos State before watching the finals of the NFF/ ZENITH Bank Future Eagles Championship.

A welcome dinner put together by the League Management Company and also attended by members of the diplomatic corps is on the cards.

At the one-hour meeting involving Infantino, Samoura and Pinnick on Sunday, Nigeria’s Minister of Sports Solomon

Dalung spoke with the FIFA boss and expressed Nigeria’s readiness to welcome the FIFA team.

Fatma Samba Diouf Samoura, 54, was appointed FIFA Secretary General at the 66th FIFA Congress in Mexico City on 12th May. The Senegalese, who has wide experience working with the United Nations in several countries, is the first-ever woman to hold the position in FIFA’s 112 –year history.

Chess Masters Set for Millionaire Championship Femi Solaja The 2nd edition of the much anticipated Millionaire Chess Championship gets underway from today with all the notable chess players in the country lined up for participation at the Chevron Recreational Center, Gbagada Lagos.

As expected, it will be a fierce battle among the top ranked players to pick the sole winner of an all-expense-paid trip to USA and participate at the forth coming Millionaire Chess Open in Atlantic City, USA in October.

International Master Bunmi Olape who won the maiden edition and was part of the galaxy of chess stars that participated in the main event held in Las Vegas last October will no doubt have stiff opposition from the emerging rank of players who are aiming to dislodge the old order.

“It was a unique experience last year in Las Vegas and I will

be glad if I can win again but knowing fully well that the road to glory just like in the last edition will be tough but I am equal to the task,” he responded in a telephone interview last night.

Top players like International Master Oladapo Adu, Bomo Kigigha, Abimbola Osunfuyi, Daniel Anwuli, Adeyinka Adesina, Ochuko Emuakpeje, Adebayo Adegboyega, Ademola Sorungbe are among players likely to be part of the event.

According to the President of Nigeria Chess Federation (NCF), Mr. Lekan Adeyemi, “the event is an initiative of Kasparov Chess Foundation (KCF) which also intends to put promising chess players on the continent to play at tournament on the global level aside the regular World Chess Olympiad and annual World Chess Championships,” he remarked.

However, only players registered with African Chess Federations are eligible to win the

satellite ticket to the Millionaire Chess Open in Atlantic City which will come up from between October 6th and 10th this year.

Aside the main event, there are also side tournaments such as top two finishers in the youth category will qualify to represent Nigeria at the World youth 2016 Russia and African youth 2016 South Africa but the players need to be members of Nigeria Chess Federation prior to July 10, 2016 in order to be eligible.

In the prize made available last night, the second placed player will receive a cash prize of N50, 000 just as N40, 000, N30, 000 and N20, 000 would be available for third, fourth and fifth place winners respectively.

Consolation reward of N10, 000 each is also on offer for 6th-10th placed winners are on the card just as Best Lady will receive a cash prize of N30,000 and N20, 000 for runner up while best junior player will take home N10,000.

47

T H I S D AY •TUESDAY JULY 12, 2016

TUESDAYSPORTS

A Euro of Giant Killers, CR7, Hooligans The 2016 European Championship ended on Sunday with Portugal’s stunning victory over France in the final -- the last shock in a tournament of giant-killing romance, vicious and gentle fans, the rise of Antoine Griezmann as an international star and Cristiano Ronaldo stretchered off in tears and still winning.

Euro 2016 was not a classic for football purists but pure joy for anyone who revels in sporting upsets. For France, Euro 2016 was an antidote to terror attacks and weeks of social unrest until the final.

Russian hooligans tested the hosts’ security forces but Irish Republic fans sang their way into the hearts of French police.

SHOCKS GALORE Expanded to 24 teams for the first time, some had expressed fears that the little nations would not be up to it. But Iceland, Wales and

Portugal answered UEFA’s prayers.

Iceland beat England 2-1 in the last 16 in one of the biggest shocks in football history. Iceland scorer Ragnar Sigurdsson said England “panicked”. English Football Association chief Martin Glenn could not understand why England are so “brittle” on the international stage.

Wales, built around powerful Real Madrid forward Gareth Bale, lost to England but still reached the semifinals with determined, entertaining football that swept aside Russia and Belgium with domineering 3-1 wins.

It took the class of Cristiano Ronaldo to outgun his Real teammate in the last four.

Northern Ireland also put on a gutsy show to reach a quarterfinal against Wales.

France and Portugal rode their luck in early games but there was no doubting they deserved their semifinal wins

over Germany and Wales respectively.

Portugal started as 25-1 outsiders to win the tournament but pulled off the final glorious upset. They lost Ronaldo, who was stretchered off after 25 minutes, and soaked up France’s pressure

Mueller returned home as one of the Euro failures.

Pogba scored once as France marched on the final, but Griezmann produced repeat heroics to go into the final as the tournament’s top scorer on six goals.

The 25-year-old who has never played in the French league scored twice against

produced a spectacular shot in the opening game against Romania.

Xherdan Shaqiri’s scissorskick goal for Switzerland against Poland could also be a candidate for goal of the tournament.

The 108 goals in 51 matches

gave an average of 2.11 goals a game, below the 2.45 of Euro 2012 and the 2.7 at the 2014 World Cup. But there were records.

Ronaldo equalled French legend Michel Platini’s nine goals in Euro tournaments.

Hooligans And Real Fans Fans from Iceland and both sides of the Irish border charmed everyone wherever they went in France, but an old blight made an unwelcome return -- hooligans.

The hours before the match between England and Russia in Marseille were mayhem, with what a prosecutor said were “well-prepared” gangs of Russians attacking rowdy and drunk England fans in the Vieux Port district

Griezmann Shines Euro 2016 was meant to be the tournament of Paul Pogba, Cristiano Ronaldo and maybe Thomas Mueller. Germany’s Mueller, top scorer at the 2014 World Cup, did not have a goal to his name when Germany were stunned by two Antoine Griezmann goals on a hot night in Marseille.

for 109 minutes before Eder powered a shot past France’s captain and goalkeeper Hugo Lloris.

Ronaldo produced one of the goals of the tournament with a sublime backheel against Hungary.

France’s Dimitri Payet also

Irish Republic and twice more in the 5-2 quarterfinal win over Iceland.

For Griezmann, however, it was a second major final lost in a month after his Atletico Madrid lost to arch-rivals Real Madrid in the Champions League.

“It’s frustrating, it sucks, but that’s football,” he said.

as bottles and teargas flew.

One England fan suffered brain injuries, dozens more were hurt.

A Russian far-right sympathiser, Alexander Shprygin, was expelled from France over possible links to the violence, then embarrassed French authorities by slipping back into the country.

The events have raised fears over Russia’s hosting of the 2018 World Cup. On a happier note, the “Viking army” from Iceland came armed with nothing more than plastic-horned helmets and a sense of fun as

PUBLIC NOTICE

I formerly known and addressed as LUCKY IGARRI ARHOREAREYO, now wish to be known and addressed as LUCKY ERHINYODAVWE EVWIERUROMA. All former documents remain valid. The general public should please take note.

their team exceeded all expectations.

Their single clap “Huh!” celebration will live long in the memory.

Northern Ireland’s fans made “Will Grigg is on Fire” one of the tournament’s anthems, even if Grigg did

not play a single minute.

The Republic of Ireland’s fans won hearts by chanting “Stand Up for the French Police”, serenaded girls in the crowd and, in an incident which went viral, collectively fixed a dent in the roof a car.

Tuesday July 12, 2016

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Price: N250

MISSILE ARG to FG

“Both the president and ACF need to take lessons on managing an all-inclusive, pan-Nigerian government. We wonder on what consensus or authority the so-termed non-negotiable unity of Nigeria stands. Is it based on government’s ability to silence all dissenters or the capability to manage a diverse society in a manner that makes every component proud?� – The Afenifere Renewal Group (ARG) rejecting President Muhammadu Buhari’s position that Nigeria’s unity was not negotiable, saying Nigeria could only remain united if all ethic nationalities agreed to live together.

RIGHTOFREPLY ABDULHAKEEM IBRAHEEM

One Road to Restructuring “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.� – Eni-B

E

ni-B’s “It’s Electricity, Stupid!�, published on this page Tuesday, July 5, 2016 was a very thoughtful piece on the nefarious activities of the Niger Delta Avengers (NDA). Even the Twitter Senator whose kinsmen (the Ijaws) constitute the majority of the NDA has yet to condemn their activities. Besides corruption and gross mismanagement, the bombing campaigns of the NDA partly explain why Bayelsa State Governor Seriake Dickson is unable to pay salaries even with monthly FAAC and 13% derivation. And yet, Senator Common Sense has refused to donate his salary to assist in offsetting the Bayelsa State Government’s salary backlog just as he promised (yet unfulfilled) same to Osun State Government early in the year even though the senator has N11 billion hole sitting with AMCON. But when it comes to Fulani herdsmen, he delves into a tweeting frenzy. Sheer hypocrisy! Anyway, that is not the purpose of my reaction to your article.

I am glad you mentioned that the militants were obscenely enriched by the Jonathan administration. It was not just that. The damage Jonathan did to this country goes beyond enriching militants, friends, political associates and cronies, far beyond that; unfortunately, this is underreported. A lot of people do not even realise it. The real long-term damage is the damage to institutions. Why do you think the security forces have been unable to get a hold on NDA and bring them to justice? It is simply because the institutions have been destroyed. The army, police, navy, judiciary and all other civil service institutions have been compromised. Professionalism is dead and buried in them. There are insiders in the security forces who relay government’s plans to the militants. That is why the NDA have the effrontery to threaten the government via obnoxious tweets and boast that they are 10 steps ahead of the Nigerian Army. What a shame! How could the Nigerian Navy’s job of protecting pipelines be outsourced to militants

by Jonathan? Do we then need the Navy?

Now to the meat of my response.

As much as I detest the activities of the NDA and would have preferred that the government deals with them, we also have to weigh the costs and benefits especially when the security forces have been infiltrated and are therefore helpless in gathering the necessary intelligence to bring the economic saboteurs to book. As you said, President Buhari is helpless in this regard because the security forces have failed the nation. In light of this embarrassing reality, your proposition of resource control and payment of taxes to the federal government appear in order. My problem with this however is that it does not address the issue. This is premised on the following reasons.

One, the NDA militants are not necessarily freedom fighters, they are just after the pipeline protection contracts and illegal oil bunkering

which Buhari has stopped. That is the crux of the bombing. You think they care about a university, clean-up of their land and all other demands they made? Not true! As you rightly said, government should not reward bad behaviour because it will only get more of it. It will result in a proliferation of militant groups. Let’s assume the federal government adopts the resource control proposition, who then controls the oil resources? The state governments of course. What then is the benefit to the militants, nothing? If the state government controls the oil resources, pays taxes to the federal government but refuses to cede pipeline protection contracts to the militants and allow oil bunkering, do you think they will not blow the pipelines? The point is, what is in it for the militants? That is what matters to the NDA. They just want the “Jonathan dollar-flow� which the Buhari government has stopped, to continue. It is just as simple as that. The freedom fighting rhetoric is a mere smokescreen.

Two, we will be setting a bad precedent if we go with the resource control proposition especially at this time when it will be seen to have been induced by economic sabotage. The implication of this is that anybody can hold government to ransom by bombing strategic assets when it feels disenchanted with the policies and programmes of the government.

This is effectively, an invitation to anarchy and socio-political disorder. And trust me, politicians will exploit such an opportunity to a devastating effect. Virtually every politician will have his militant arm and hijack local militia group.

Militant groups will be a beautiful bride to be courted by politicians who will use them to settle scores with the government. It means my life, your life and that of every citizen is no longer safe. Is that the kind of country we want to live in?

Three, if at all we want to go with resource control, it is difficult to transition with immediate effect because it will be unpopular with and resisted by the north. Also, it is inappropriate to be seen that federal government was bombed into submission. That will be too bad and a terrible signal, the import of which is that anybody can hold the federal government to ransom. It is sad when the NDA gives the federal government ultimatums and make threats to government and oil firms not to repair damaged pipelines. So sad for our country.

Is this how bad corruption has eaten deep, to the extent that the once-revered Nigerian Army will deny that one of its former generals owns a certificate? Is this the way we want to run this country? Jonathan has really done a lasting damage to Nigeria, the results of which have only just begun to manifest.

Playing the Devil’s Advocate: How to Transition to Resource Control Were we to adopt resource control, it has to be done gradually as doing so immediately is akin to visiting poor states with fiscal shock which could bankrupt them and will be fiercely resisted by the north. There has to be a transition period of say 4-5 years. During that period, all states would have drafted their transition plans and began gradual implementation in

Calming the restiveness in the Niger Delta

control or not, it does not change anything for the militants. The only language they understand is petrodollars and they will be friends of whoever assures them of it. Simple!

Whether it is the federal or state government that controls the resources is irrelevant to them. I will propose instead that government weighs the costs and benefits. Why wouldn’t the government pay the militants say $5 million every month for pipeline protection and save $900 million (600,000bpd x $50pbl x 30 days) every month? The government then nets $895 million ($900m – $5m) every month which will be used to finance critical import needs. The government cannot afford to be pennywise, pound foolish. What I will suggest is done differently is that both the Nigerian Navy and the militants should guard the pipelines together. With that and over time, the government will know each and every militant and institute programmes to wean them off pipeline protection and illegal oil bunkering in the long term.

In conclusion, the bottom-line is resource

•Abdulhakeem Ibraheem writes from Abuja

preparation for the monthly Abuja receipts will cease to flow. If we set July 2021 as the date of transition for example, it will enable all states to plan appropriately. That means Company Income Tax, VAT, WHT, PAYE, revenues from solid minerals, ports, immigration, customs duties and levies, crude oil, mineral resources and any other incomes would go to the state government where such revenues are generated and the state then pays a tax to the federal government. For states who want to go into agriculture, the five-year transition period affords them the opportunity to plan and broaden their agricultural and other revenue bases. By 2021, the president/federal government’s role will be restricted to foreign affairs, currency management, internal policing, judiciary and conduct of elections. All states will handle their respective economic affairs.

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'21¡7 PUT ME IN TROUBLE O! THAT CARTOON SHOWS HOW OUR COMPANY WAS RUN IN 2009!

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