TCN Management Returns to FG as Manitoba Exits Atiku, Gumel, Uwah now head TCN, TSP, SO/MO
Chineme Okafor in Abuja The federal government has resumed the management of Transmission Company of Nigeria (TCN), following the completion of a four-year management contract by
Manitoba Hydro International (MHI), Canadian power firm. THISDAY gathered yesterday in Abuja that MHI finally handed over the affairs of TCN to the government on Friday, having failed to secure an extension in its management
contract for the TCN, which it signed in 2012. Although THISDAY could not confirm if MHI ever lobbied to be retained, there were indications that it had for the period it managed TCN, encountered very high-wired
politics which made its job quite difficult. Manitoba Hydro, THISDAY learnt, finally handed over TCN to Nigerian officials who had been deputising for the foreigners since 2013 in an understudy kind of capacity.
While the paper could not confirm if the current management arrangement would be an interim one, the outcome of its inquiries showed that Abubakar Tambuwal Atiku, hitherto deputy managing director of TCN, T. O. Uwah,
director, Transmission Service Provider (TSP); and M. M. Gumel, director, System Operator and Market Operator (SOMO), replaced Mark Karst, Shahid Mohammed and Dipak Sarma, Continued on page 8
Security Operatives Seal off House Appropriation Committee Secretariat ...Page 10 Sunday 31 July, 2016 Vol 21. No 7767
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Adesola Adedotun, First Bank's Chief Banker, Speaks to THISDAY
After Two Days of Aerial Assaults, Military Moves in to Mop up Lagos, Ogun Creeks
Casualty figure unknown Prepares for onslaught against militants in the Niger Delta wins concessions on freedom for Tompolo, Okah Brothers, Nnamdi Kanu, others
MEND
Chiemelie Ezeobi in Lagos and Emmanuel Addeh in Yenagoa Ground forces of the military Joint Task Force yesterday moved into the dreaded enclaves of the notorious pipeline vandals at the Arepo area of Ogun State and parts of Lagos State to mop up any remaining resistance by the militant groups who had been terrorising the areas since the last few weeks. This followed three days of sustained aerial bombing of the militants’ hideouts in the creeks and mangroves, THISDAY has learnt. This was as indications emerged yesterday that the federal government might have concluded preparations for an onslaught against unyielding militants in the Niger Delta. Local militants in the delta have claimed several attacks on critical oil and gas facilities in the area, especially since the beginning of this year, with the federal governContinued on page 8
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WEEKLY PULL-OUT
31.07.2016
HAPPY BIRTHDAY
R-L: Former President, Chief Olusegun Obasanjo; celebrant, Oloye Adio Obafemi Olopade; and his wife, Feyitola, at the 90th birthday thanksgiving service of Olopade at Chapel of Christ the Glorious King, Olusegun Obasanjo Presidential Library, DAN UKANA Abeokuta ...yesterday
Atiku: Take or Leave it, Restructuring is Inevitable ...Page 10
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SUNDAY, JULY 31, 2016 • T H I S D AY T H E S U N D AY N E W S PA P E R
PAGE EIGHT AFTER TWO DAYS OF AERIAL ASSAULTS, MILITARY MOVES IN TO MOP UP LAGOS, OGUN CREEKS ment accusing them of sabotaging the national economy. As a prelude to what may be one of the biggest military operations in the oil-rich region in recent times, the military authorities have visited the Niger Delta to assess the level of preparedness of the armed forces for the exercise, codenamed, “Operation Crocodile Smile”. MEND wins concessions on freedom for Tompolo, Okah Brothers, Nnamdi Kanu, others... In a related development, Movement for the Emancipation of the Niger Delta said at the weekend it had secured major “concessions and guarantees” in its on-going dialogue with the federal government. The dialogue is a window created by the federal government to try to achieve a peaceful resolution of the issues behind the resurgent militancy in the Niger Delta and attacks on the oil infrastructure. It aims to circumvent a military solution, which many fear may be counterproductive. MEND said it had won guarantees for the release of its leader, Henry Okah, his brother, Charles Okah, and leader of the Indigenous Peoples of Biafra, Mr. Nnamdi Kanu, among other detained or jailed persons. It said the federal government had also agreed that Mr. Government Ekpemupolo, aka Tompolo, would not be arrested or intimidated whenever he made himself available. The JTF comprises elements of the Nigerian Navy, Nigerian Air Force, and the Nigerian Army, alongside operatives of the Department of State Services, Nigerian Security and Civil Defence Corps, and the Nigeria Police. While the aerial bombardment of the armed vandals’ bases in Ogun and Lagos states were carried out by NAF’s Alpha jets, with the trio of the EC135 and the ATR4 as force multipliers, military units on land combed the bombed areas to take out any militants that might still be holding out. Before the offensive started on Thursday night, the DSS had ferretted intelligence and underground fact-finding while the police were brought in for search and rescue at the fringes of the mangrove for persons who had been kidnapped by the militant pipe-
line vandals. The aerial bombardment and subsequent assault on the enclaves by the JTF was part of the military's operation tagged “Operation Awatse”, an Hausa word for “scatter”, which has land, air and maritime components, with each under a commander. The offensive was initiated to flush out the pipeline vandals and militants operating at Ishawo, in Ikorodu, and Igando areas of Lagos State, and Arepo, Awawa, Elepete, and Ibafo areas of Ogun State. This is in line with the JTF’s mandate of protecting the Nigerian National Petroleum Corporation’s pipelines from Atlas Cove to Mosimi Depot. After months of successfully repelling the vandals from these areas, arresting many and recovering countless stolen products, the displaced vandals had merely retreated from sight. They had moved deeper into the mangroves and thick foliage, where it would be practically impossible for the security forces to track them because of the difficult terrain. They also cut down trees and blocked the already narrow and shallow creeks. THISDAY also gathered that to prevent invasion by the military, the armed vandals had laid booby traps along the narrow pathway that leads to the mangrove. Investigations revealed that before the bombings, the suspects had become warlords and were illegally siphoning petrol, raping and kidnapping. They had created a fiefdom for themselves and hoisted their flag in the area they declared the “Republic of the Generals.” The Chief of Defence Staff, General Gabriel Olonisakin, had directed a resort to aerial bombardment after an aerial surveillance, allegedly, revealed that the vandals had moved from accessible areas to the impenetrable mangroves. The military decided to take out the enclaves and hideouts of the vandals once and for all by bombing all the mapped out areas captured in video format by the surveillance helicopters. THISDAY gathered that at the beginning of the aerial offensive, the vandals had mounted a GPMG gun on one of their boats and attempted to shoot down the military aircraft. Speaking to THISDAY
exclusively, the Flag Officer Commanding, Western Naval Command, Rear Admiral Bobai Ferguson, said although they had battled issues of the weather and the capability of the jets to fly at night, the bombing had to be conducted. Ferguson said, "The air force went for reconnaissance this afternoon and they went in and came out. After the bombing, the picture of the bombardment was interpreted. We will sustain bombing of the mapped out areas. "After the bombardment and the interpretation, the land forces will go in today (Saturday) into those places that have been bombarded to comb it thoroughly." Disclosing the modus operandi of the vandals, he said, "The NNPC pipes are on the surfaces, so what these vandals did was to dig boreholes and it’s two kilometres away from the pipelines. So you don't even see them siphoning the products. "What happens is that these products run into their already dug boreholes, from which they now run into kegs and drums and sell to the buyers. It's a carefully planned operation." The Air Force Director of Public Relations, Wing Commander Ayodele Famuyiwa, told THISDAY that the aerial bombardment was on-going and would be sustained. Famuyiwa said, "The Chief of Air Staff, Air Marshal Sadiq Abubakar, is committed to timely employment of air power in response to Nigeria's national security imperatives. We have sustained our air power in the North, in the South and now in the West. "Our Alpha jets conducted the air strikes and we won't stop bombing that area until the vandals are flushed out and the menace of pipeline vandalism and crude oil theft is eradicated in that area." On the casualties, Famuyiwa said he could not confirm the number. Meanwhile, THISDAY has exclusively gathered that some petrol stations along the Lagos-Ibadan Expressway were already on the watch list of the security agencies. A reliable source said on condition of anonymity regarding the pipeline vandals, "As part of the operations, we also plan to not just mop up their sponsors but also the custom-
ers, who patronise them and buy stolen products. "Already, our intelligence gathering has revealed that some petrol stations along the Lagos-Ibadan Expressway work in connivance with these vandals. Their deal is that these vandals get the stolen products and sell some to them at lower rates. “We have also located their major market, which is a settlement in one of the creeks. Our intelligence gathering revealed that they sometimes go as far as smuggling the products through Igando creeks to Badagry. We have men stationed already there to block the market and arrest any of them seen trying to make sales." During one of the navy's patrols, it was discovered that from the Awawa area of Arepo, it was easy to ferry the products from Arepo, from where they are transported to different parts of the country and sometimes to neighbouring African countries. Also, in the Ikorodu area, at Majidun, there is a market that handles the trans-border trade between vandals in Ikorodu and buyers from Arepo and vice versa, investigation has revealed. Military prepares for onslaught against militants in the Niger Delta ... In the Niger Delta, it is not clear when the military onslaught against recalcitrant militants would fully commence. But a transit camp, which would be temporarily occupied by some of the new security personnel that would carry out the operation, had been furnished in a quiet and isolated area of Yenagoa. The camp was inspected by military chiefs yesterday in an apparent bid to ensure its readiness for the military operation. As part of a strategy to incorporate local communities into the operation, it was gathered that plans were underway to form a Civilian Joint Task Force in the Niger Delta, like the type helping the security services in the fight against Boko Haram in the North-east. In the main, the proposed Niger Delta Civilian JTF , it was learnt, would comprise some ex-militants under the federal government’s amnesty programme who would be deployed to help in the gathering of intelligence to tackle
TCN MANAGEMENT RETURNS TO FG AS MANITOBA EXITS respectively, as managing directors. While sources in TCN and power ministry confirmed the development to THISDAY, a request for further information on what the situation was with the government’s final settlement with MHI did not get a response from the ministry. THISDAY placed the request before Hakeem Bello, the Senior Communications aide to the Minister of Power, Works and Housing, Babatunde Fashola, but he did not respond as at the time of filing this report. Bello, who told THISDAY that he was out of the country with Fashola on an official assignment and would provide the requested information, never did. Last week, THISDAY exclusively reported that the government was not interested in renewing MHI’s contract at TCN. The contract, which expired today, was first signed between both parties in 2012 for a base period of three years. It expired
in 2015 and was renewed for another term of one year by the government to push it further to July 31, 2016. THISDAY also learnt that the government, which preferred that Nigerians take over from MHI, had equally sidestepped suggestions made to it by the Bureau of Public Enterprises (BPE) on the way forward for TCN. BPE, according to documents sighted by THISDAY had written to the government requesting that a proactive and quick decision be taken on TCN before the July 31 expiration of MHI’s contract. These documents explained that the BPE in March 2016 suggested to the government two possible types of concession arrangements that it could adopt to keep TCN in stable operation if MHI’s contract will not be extended. The privatisation agency, which initially procured MHI for TCN had suggested that the TCN be concessioned to a
private operator, who will be responsible for operating and investing in the network, and with utmost responsibility for effective operation and recovery of investments. It also proposed in the alternative that a private investor be handed over the network to operate, maintain and complete existing projects at the point of entry but that subsequent projects for system expansion should be batched and subjected to competitive bidding on a build-operatemaintain-transfer basis. The latter proposal, THISDAY learnt could eventually lead to the evolvement of the Transmission Service Provider (TSP) arm of the TCN into regional units under different operators. BPE also asked the government to consider extending MHI’s contract by another year, but series of petition against MHI, as well as alleged opposition to their continued stay ensured the proposal did
not fly. Sources within the industry explained to THISDAY that these proposals were tabled before the government some five months ago. Also, another source disclosed that a reported proposal by the China State Grid to invest, operate and transfer the transmission network back to the government within an agreed timeframe was overlooked. This proposal, THISDAY learnt, had been on the table for long and could attract billions of dollars investment into the transmission grid to expand its capacities rapidly. THISDAY also reported that the government’s takeover of the TCN could put about $300 million proposed funding arrangement for the transmission network by the World Bank in line because the bank, it was understood, would not be too forward to release such fund to TCN under government’s sole management.
the resurgence of violent agitations in the region from where the government gets most of its revenues. Also included in the overall plan to rout the militants, especially those that have decided not to engage in talks with the federal government, or if the negotiation with them fails, is the deployment of specially trained forces in maritime combat and the rotation of military personnel around the country. Among those who inspected critical assets in the area recently, in what could be the final preparation before deployment, were the Minister of Defence, Mansur Muhammed Dan-Ali; Olonishakin; The Commander Joint Task Force, Operation Delta Safe, Rear Admiral Joseph Okojie; Chief of Logistics at the Defence Headquarters, Abuja, Major General Austin Okoh; and Flag Officer Commanding, Central Naval Command, Yenagoa, Rear Admiral Mohammed Garba. The groundwork before the full deployment also aligns with the Chief of Army Staff, Lt. General Tukur Buratai's assertion last week that the military would from this weekend launch “Operation Crocodile Smile” to engage the recalcitrant warlords. The operation, it was understood, would afford the Special Forces a chance to practise amphibious exercises in riverine areas in the Southsouth, especially in Delta and Bayelsa states, which have had intense militancy in the last few months, and then Rivers as well as parts of Akwa Ibom and Ondo states. Dan-Ali, in company with his entourage of heads of most security formations in the Niger Delta, had earlier visited the deputy governor of Bayelsa State, Rear Admiral Gboribiogha John Jonah (rtd), where he intimated him and other officials of the state of the new plan to secure the region. He added that having succeeded in decapitating Boko Haram in North-east, the next port of call would be the Niger Delta, which has recently come under attack from various militants groups, with untold consequences for the economy. Though the defence minister noted that negotiation was still on the table and indeed insisted that the federal government was talking with the warlords, he however maintained that applying military force to dislodge the armed agitators, saying, “We cannot rule that out.” On the fears about the effects of the military operation on the innocent civilian population, Dan-Ali said, “There has never been war without peace. We are not saying we are going to war, all we are doing is internal security work and it is not war, so you can’t be claiming collateral damage. “We know our rules of engagement. We cannot just use force like that without any mandate. So, collateral damage does not come in. As far as we are concerned, we are just trying to stop criminality in the area.” During a separate meeting with Bayelsa state government officials, Dan-Ali solicited the cooperation of all to make the exercise a success. He said, “During our last meeting with the vice president, with all the South-south governors in attendance, we all agreed that whatever security arrangements we have must involve the people within the area. I am here to rein-
force that decision where all the governors and locals will have to be part of our security architecture. “We have succeeded in the North-east, where we have that arrangement. The local JTF or civilian JTF, as we call them, have helped in our operations, especially in gathering intelligence. “One of the cardinal arrangements is to have a pure assessment of how we can involve or imbibe them in the new security architecture called operation ‘Delta Safe' “We are also of the opinion that some of these operations that will be conducted will help us to identify some of the illegal websites used for rumour or rumour mongering or selling our armed forces in a bad way and involvement in activities that shouldn’t be. “We are getting some of the amnesty students that have graduated and they can be involved. They are being paid. As negotiation is going, we are all stakeholders and we should all be involved.” The minister also said, “There would be constant rotation of our security personnel so that some of them will not be involved in illegal activities as a result of overstaying. “We are also training a special brigade to add to what we have on the ground and we require some element of assistance.” While fielding questions from journalists, Olonishakin “The military has the constitutional duty to ensure peace in the nation. Whatever we will need to do to ensure that will be done. We have allowed the truce so that whoever wants to talk can be given that opportunity. But we also have to make sure that that our troops are ready so that the truce is well implemented. “However, I want to call on those who are still sabotaging our critical infrastructure to put on their thinking caps and come to the negotiation table. We in the military will ensure that our critical infrastructure is protected. We will ensure that anyone found sabotaging the economy is properly dealt with and all the criminals are brought to book.” Meanwhile, as part of efforts to circumvent the use of military tactics to solve the Niger Delta crisis, MEND said in a statement yesterday signed by its spokesman, Jomo Gbomo, that in its negotiations with the federal government, the latter had also conceded to the release of “Obi Nwabueze; Review of the life sentence handed to Mr. Edmund Ebiware; based on a proposal put forward by the Aaron Team representative for Abia and Imo states, Senator Adolphus Wabara, conditional release of IPOB leader, Mr. Nnamdi Kanu, and others, if they renounced their agitation for a ‘Biafra Republic’.” Other concessions won by MEND, according to the statement, include, “That Mr. Government Ekpemupolo shall not be arrested, harassed and/or intimidated whenever he makes himself available as a delegate of the MEND Aaron Team 2; that, international arbitrator and conflict negotiator, American Dr. Judith Asuni shall be accepted as the representative of the Niger Delta Avengers (NDA) on the MEND Aaron Team; that the criminal charges against Urhobo freedom fighter, Mr. Kelvin Prosper Oniarah shall be reviewed; SEE THE CONCLUDING PART ON www.thisdayive.com
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 17,2016
SUNDAY COMMENT
Editor, Editorial Page PETER ISHAKA Email peter.ishaka@thisdaylive.com
A HOUSE DIVIDED AGAINST ITSELF
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Budget padding is just one of the haunting scandals of a troubled National Assembly
he presidential system of government that we practice in Nigeria today comes with a constitutional provision that no expenditure shall be incurred except authorised by the legislative arm. This provision also gives the lawmakers, in our present circumstance, the National Assembly, what is usually described as the power of the purse. But that power is coming under increasing scrutiny, especially given recent revelations from the House of Representatives where there were allegations and counter-allegations that monumental corruption may have been institutionalised in the budgeting process. Already, the House of Representatives Speaker, Hon. Yakubu Dogara, As sordid as the has issued Hon. Abdul‘budget padding’ mumin Jibrin (whose brouhaha may be, removal as House Comit is a symptom of mittee on Appropriation a bigger malaise. chairman started the war words), a seven-day Section 63 of of ultimatum to retract althe constitution legations that linked him requires the (Dogara) with illegally Senate and House inserting projects into of Representatives the budget after passage. to sit for not less Meanwhile, Jibrin has countered that he than 181 days in also would neither withdraw a year. But that his allegations nor back requirement is down in his bid to have often breached the three principal officers he accused of corruption removed from their offices. In fact, Jibrin has released more damning allegations against the speaker in recent days. We believe the whole controversy is unfortunate as it has further dented the image of the National Assembly while creating confusion in the minds of Nigerians about the power of the legislature to appropriate money for public expenditure. Although the 2016 appropriation bill (now act) - mismanaged by both the executive and the legislative arm - may have caused the latest controversy, there has always been a contentious issue that borders on the meaning and essence of separation of powers that is yet to
Letters to the Editor
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be resolved. Although the power of the legislature to initiate projects through appropriation has over the years been challenged by the executive, we believe the lawmakers indeed can. What the legislature cannot do is to be executing projects. But the real problem in Nigeria is that our lawmakers, in most cases, have also become contractors with “constituency projects” now effectively another byword for corruption.
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S U N DAY N E W S PA P E R EDITOR TOKUNBO ADEDOJA DEPUTY EDITORS VINCENT OBIA 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 DIRECTORS 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
ndeed, the misconduct of many past and present legislators has tended to justify public resentment of their role in the budget process. While there might be nothing wrong with the appropriation of money for projects in their constituencies, the way and manner several of them harass the executive to award the contracts for such projects to their proxy companies is unethical. This is at the heart of the current crisis in the House of Representatives. Whenever the National Assembly resumes from its current recess, the House must quickly rise above the controversy by using its internal conflict resolution mechanism to deal with the situation and move on to its primary job of lawmaking and oversight of the executive to ensure good governance. But if there are criminal issues in the investigations being conducted into the sundry allegations being traded by the parties to the crisis, the relevant authorities will have to deal with them. Unfortunately, as sordid as the “budget padding” brouhaha may be, we should not look at it in isolation but as a symptom of a bigger malaise. For instance, section 63 of the constitution requires the Senate and House of Representatives to sit for not less than 181 days in a year. But they hardly meet that requirement. In fact, there are reports that the Senate actually sat for 96 days while the House sat for 104 days during the first legislative year which ended on June 9, 2016. Padding of budgets, purported execution of constituency projects and collection of money to pay “ghost” staff are a drain on the lean resources of the nation. If you add that to the 21 ex-governors and deputy governors on pension for life who are also collecting salaries and allowances in the Senate, you get a picture of an institution that is mostly self-serving.
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 (950- 1000 words). They should be sent to opinion@thisdaylive.com along with the email address and phone numbers of the writer.
CONFLICTS AND LEADERSHIP IN A PLURAL SOCIETY
ometime in February this year, while meeting with officials of the Centre for Humanitarian Dialogue, who paid him a visit at the State House, Abuja, President Muhammadu Buhari told the gathering which included media personnel that conflicts in Nigeria were caused by the problems of poverty, unemployment and injustice! Nigeria’s history since independence till date has been one in which these three challenges have predominated, defining the life of the majority of the people and behind most of the conflicts and social problems that bedevil the society, be it insurgency, armed robbery, kidnapping, inter- communal violence and civil war. It is therefore no wonder that the president has zero tolerance for corruption which is a twin to general poverty and unemployment and the direct consequence of the
failure of leadership. Understanding the presidents’ perspective on conflicts and their causes in a country like Nigeria is thus a key to appreciating the reason why PMB is intolerant of corruption and is determined to have those who have benefited from it to return all they have stolen and face prosecution. It is also the reason why the president is ready to take stringent and albeit unpopular measures to put the nation’s battered economy in shape. When corruption is under control, and public revenue is deployed to social and economic projects rather than into private pockets, a comatose economy will have a new lease of life, serve the needs of the majority of the citizenry and keep social conflict at bay. In the past 12 months of his administration during which time he has embarked on several foreign trips, his meetings and discussions
with fellow leaders and institutional heads had been dominated by the need for stolen wealth of the nation to be repatriated by these countries and for government and business people from these countries to help the country in the fight against terrorism and for foreign direct investment. The summary of all these would translate to a healthy and productive economy where unemployment is within manageable limits. Second, the agenda of the president’s foreign trips is redefining the foreign policy of the nation. It is given new meaning to being a friend of Nigeria. In the PMB era, it would be inconsistent with good relationship for any country to harbor fleeing Nigerian officials who have stolen the country’s money and kept these in foreign countries either as cash or property. Also, a country would be counted as a friend of Nigeria when the latter
adds its bit to the re- invigoration of the nation’s sick economy to combat unemployment, low productive and aid diversification of the latter. A number of prominent Nigerians have been working hard to also arrest the twin problems of poverty and unemployment ravaging the country and indirectly combat conflict arising from the duo. Business people, entrepreneurs and industrialists like former Vice-President Atiku Abubakar through his agro- allied companies, and his developmentfocused American University of Nigeria (AUN) in Yola, is in this category. PMB in his wisdom, as well as the Vice-President, Professor Yemi Osinbajo has given audience to these class of Nigerian business people and others too numerous to mention, in the bid to put the nation’s economy back on track. However, it in the area of combating injustice and creating social
harmony through good governance, that PMB would face the greatest challenge. The president believes that injustice causes conflict. This is largely true and is usually so in multi-ethnic and multi-religious societies like ours. Therefore a leader in these climes should always be mindful of ensuring that each nationality within the country is given its due. Deliberate effort should be made to ensure that every group has a sense of belonging in the nation. If the criteria for selecting leaders are based on merit, all groups should be represented in the leadership echelon, chosen by the same criteria to represent their ethnic or national or religious groups. This then gives the lie to those who say, “anybody can rule provided they rule well’’! –Louis Okoroma, Abuja
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
SUNDAYNEWS
News Editor Abimbola Akosile e-mail: abimbola.akosile@thisdaylive.com, 08023117639 (sms only)
Indorama to Invest $4.2bn in Eleme Petrochemicals by 2020 James Emejo in Abuja
REMEMBERING GEN KATSINA L-R: Former Vice President Atiku Abubakar, former Head of State, General Yakubu Gowon, and Minister of Interior, Abdurahman Dambazzau, at the memorial conference for late General Hassan Usman Katsina (Ciroman Katsina), Murtala Square, Kaduna State...yesterday PHOTO: Idris Egaji
Security Operatives Seal off House Appropriation Committee Secretariat • Deny clerk, staff access Damilola Oyedele in Abuja
The Clerk of the Committee on Appropriation, Dr. Abel Ochigbo, and his staff could not access the secretariat of the committee yesterday as security agents prevented them from doing so. Yesterday’s development followed the face off between the Speaker of the House, Hon. Yakubu Dogara, and the erstwhile Chairman of the Committee, Hon. Jibrin Abdulmumin, over allegations of budget padding leveled by the latter against the speaker, key leaders of the House and some committee chairmen. The denial of access implied that the Secretariat of the committee may have been sealed off as claimed by Abdulmumin through his twitter handle earlier on Saturday. Abdulmumin had accused Speaker Dogara of ordering the computers in the Committee’s secretariat be moved to his office in a view to tapering with evidence. The lawmaker had also alleged that there was an attempt to break into his office, Rm 1.05. In one of his tweets on Saturday, he said: “On the request of my lawyers, the security agencies have promptly provided protection for the appropriation secretariat, my office and house.” Ochigbo, fielding questions from journalists, said contrary to his claim, no computer or document in the secretariat had been removed. He also said that the secretariat had not been sealed as claimed.
But attempt by him to access the secretariat at about 4.30pm on Saturday so as to prove that it had not been sealed failed as security operatives denied him access. “Nothing is wrong with the secretariat, everything is intact in the secretariat. The thinking is that the status quo should be maintained. Of course I can’t instruct them to open the doors by force. So please bear with us because instead of keeping you here I feel I should make this statement. They aresafeguardingtheoffice,”hetold journalist after he was prevented from accessing the secretariat. Ochigbo also claimed that no staff had been harassed to intimidated. In a letter addressed to the ActingClerkoftheNationalAssembly, he further said: “I write to confirm that the committee secretariat is intact and has not been threatened in any way. All records are also in tact and safe. Both hardware and software, in addition, our archival set up is properly kept and in order. Furthermore, no staff in the secretariat of the committee has been subjected to any form of threat, intimidation or harassment from any quarter whatsoever. Any such reports along the lines of the above allegations should therefore be totally disregarded.” Earlier the Chairman of the Appropriation Commitee, Hon. Mustapha Dawaki, told journalists that all the documents in the secretariat were intact, including computer hardware and software. But as the budget saga continue to rage, Abdulmumin has not
shown any sign that he would back down. At the weekend, he released several tweets threatening to disclose further details to buttress the allegations he made against the speaker and other key officers of the House. One of the tweets reads: “I will share with you the contents of my petition to the EFCC and ICPC in due course & shall return more shocking revelations…” He noted that this was a defining moment in the struggle to cleanse the House and the first time a member would drag 12 of his colleagues to anti-graft agencies. Apart from the speaker, deputy speaker, whip and minority whip, others listed in his petition to the EFCC and ICPC, according to him, include Chairman House Committee onInterior, Hon. Jagaba Adams; Chairman House Services Committee, Hon. Babanle Ila; Chairman Committee on Power, Hon. Dan Asuquo; Chairman Committee on Marine Transport, Hon. Mohammed Bago; Chairman Committee on Police, Hon. Haliru Jika; Chairman Committee on FCT, Hon. Herma Hembe; Chairman Committee on Higher Education, Hon. Zakari Mohammed; and Chairman Committee on Health, Hon. Chike Okafor. Abdumumin said the case against them ranges from corrupt enrichment, abuse of office and public trust, living above means andmassivemovementoffundsin budget. In another tweet, the lawmaker said: “I am confident that the EFCC and ICPC will effect the arrest of Speaker Dogara and the 11 others to commence prosecution in earnest.” Insinuating that the speaker
was using his office for personal gain, Abdulmumin in yet another tweet said: “Speaker Dogara has resorted to blame of so-called external forces, are those forces responsible for moving FG projects to his farm?” Abdulmumin further alleged that a duplex in highbrow Panama crescent of Maitama is regularly used by the Speaker to host night parties after its recent renovation with tax payers funds. He added that several brand new exotic cars were taken out of the building Friday morning. Meanwhile the National Youth Council of Nigeria (NYCN) has petitioned the EFCC demanding investigation of Abdulmumin for his alleged involvement in ten contracts awarded by the National Commission for Refugees, Migrants and Internally Displaced Persons in September 2014. A copy of the petition obtained by THISDAY noted that all ten contracts were suspiciously awarded to five companies on the same day for Kano state. The petition added that Abdulmumin was copied all the letters of award of the contracts. “No other House of Representatives member or Senator from Kano state was copied. How did Hon. Fibrin come to be copied.” THISDAY contacted the President of the NYCN, Ikenga Chinyere, to explain why the petition was just sent to the EFCC on July 29, 2016, over a matter that happened two years ago. “We have been working on it before now, we would still present others against him in the coming days,” he said in a telephone conversation.
Atiku: Take or Leave it, Restructuring is Inevitable John Shiklam in Kaduna
Former Vice President Atiku Abubakar at the weekend renewed his call for the restructuring of the country positing that it has become inevitable. Presenting a paper at a memorial conference in honour of the late Military Governor of defunct Northern Region, Gen. Hassan Usman Katsina, which held at the Indoor Sports Hall, Murtala Square, Kaduna on Saturday, he urged Nigerians to support calls for the restructuring of the
federation in order to strengthen its unity and stabilize its democracy. “I believe that restructuring will eventually happen whether we like or support it or not. The question is whether it will happen around a conference table, in a direction influenced by us and whether we will be an equal partner in the process. Or will it happen in a more unpredictable arena and in a manner over which we have little influence? It should be at a table and we need to be at that table. A nation is an organism; it grows, it evolves, it changes, it
adapts. And like other organisms if it does not adapt, it dies”, the former vice president said. Buttressing his argument for restructuring,Abubakarsaid:“My focus here, however, is to show that the north and Nigeria have not been served well by the status quo and there is need for change. Who among us who went to primary and secondary school in the 1960s had much to do with the federal government? Did the northern regional government wait to collect monthly revenue allocations from Lagos before paying salaries to its
civil servants and teachers or fixing its bridges and roads?” Noting that the fragile unity of the country was being threatened with sentiments and urged the North not to shy away from agitations for restructuring the country, he said, “I am not trying to be a messenger of doom but to alert us to the serious challenges ahead if we do not take immediate corrective actions both in our economic and our politics.” (See concluding part on www.thisdaylive.com)
Indorama Group, the consortium which took over ownership of the Eleme Petrochemicals Industry through a privatisation exercise in 2006, plans to bring total investment in the company to $4.2 billion by 2020. Already, the company has implemented the world’s largest single train Urea plant of 1.5 million tonnes capacity along with associated infrastructure with total investment of $1.4 billion, making its current total investment of $2 billon. The acting Director General, Bureau of Public Enterprises (BPE), Dr. Vincent Onome Akpotaire said the sale of the almost moribund petrochemical company represented one of the success stories of the Federal Government’s privatisation programme in terms of compliance to the executed Share Purchase Agreement (SPA)/Post Acquisition Plan (PAP); contribution to the Gross Domestic Product (GDP) and the creation of employment in the country. He further maintained that the sale of Eleme Petrochemicals
to Indorama was transparent and followed due process with all the necessary approvals given by the National Council on Privatisation (NCP). According to him, four companies were pre-qualified for the bidding process at the close of the deadline on May 2005 for the submission of Expression of Interests (EOIs) which after evaluation, only Dangote Chemicals Co. Consortium, Indorama Group and LG Chem were shortlisted. He recalled that LG Chem subsequently pulled out on the grounds that it intended to participate as an Operations and Management (O & M) contractor and not to acquire controlling interest in EPCL, leaving the contest between Dangote Company Consortium and Indorama Group. Eventually, the latter won the bid to take over the company at the cost of $225 million from the earlier $215,088,888 it had bidded with a commitment to invest $150 million to be sourced from the International Finance Corporation (IFC) to revamp the company’s plants and facilities.
Navy Loses Officer in Delta Sylvester Idowu in Warri Tragedy struck at the Nigerian Navy Ship (NNS Delta), Warri as a Naval Officer lost his life after hitting his head on a rail at the Base’s jetty on arrival from an operation against militants in the creeks of Warri South West Local Government Area of Delta State. The officer (names withheld), a Lieutenant Commander, died at about 7p.m on Thursday on arrival from a patrol team he led against some militants allegedly operating somewhere in the creeks of the council. Security sources told THISDAY that the officer, who hailed from Nasarawa State, had successfully led the patrol team to the creeks and returned to the base safely with his team. It was however gathered that the officer met his untimely death while alighting from the patrol boat and slipped, hit his
head on a dangling rail and fell inside the river. It was learnt that concerted efforts by his subordinates to rescue him proved abortive as he was already bleeding from the nose and ear by the time he was brought out lifeless out of the river. “This incident happened within seconds but the officer was gone. He would have survived if the authority had fixed the rails despite several complaints”, the security sources disclosed. It was learnt that the situation would have been avoided if the Naval Authority at the Base had heeded complaints by officers and ratings that the landing jetty was risky to them on arrival from operations. The NNS Delta was thrown into a state of mourning as the wife of the officer who he got married to last November was pregnant and had to be drafted out of the barracks.
US Visa Issuance: Nigeria Ranks First in Africa Chinedu Eze
Nigeria has been ranked number one in Africa in the number of visa requests approved by the US Foreign Affairs Department. According to a document made available to THISDAY, Nigeria was also ranked number four in the world in the number of visas issued by the US in 2015. Out of 2,738,528 visas issued to non-immigrant visa applicants from 40 countries in the world, India ranked number one with 991,804 visas; Philippines was ranked second with 235,221; with Russia coming third with 164,053 and Nigeria came fourth with 162,429. According to industry insiders, the number of Nigerians that obtained US visas
in one year shows that despite the fact that Nigeria is experiencing economic downturn, the passenger traffic to international destinations is still growing and would continue on the upward swing after the country has turned the corner from its present economic challenges. About two months ago United Airlines stopped its operations to Nigeria, citing forex challenges and leaving 1,750 seats, which have been snapped by Delta Air Lines, Arik Air and other European carriers. Industry analyst told THISDAY that the granted visa requests to Nigerian applicants by the US shows that there is greater opportunity in the USNigerian air market
See News Extra
on Page 98
T H I S D AY SUNDAY JULY 31, 2016
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SUNDAY JULY 31, 2016 T H I S D AY
T H I S D AY SUNDAY JULY 31, 2016
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JULY 31, 2016 • THISDAY, THE SUNDAY NEWSPAPER
OPINION Solid Minerals Development: Do We Mean Business?
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Taiwo Awe argues that the issue of ownership of solid mineral resources must be cleared
erhaps for the first time in the recent history of Ministry of Mines and Steel Development, the Ministry under the able leadership of Dr. Kayode Fayemi has produced a comprehensive road map for the development of solid minerals in the country. It is however important to note that formulating a road map is just the initial stage of our success journey in the mining industry. The real work is the implementation of the road map, and this hasn’t been our point of strength as a people. To start with, we need to ask ourselves some basic questions concerning this road map: has the road map taken into consideration everything we need to do to make the mining industry generate one million jobs (both direct and indirect) and also contribute 10% to the GDP? What will be the fate of the road map if the president decided tomorrow that he now needed the current minister in another ministry as former President Obasanjo did with Mrs. Oby Ezekwesili when he moved her from the Ministry of Solid Minerals to the Ministry Education? Will the implementation of the road map need strong leadership of people like Dr. Fayemi or will it go on with or without him? Also, what happens to the road map after the life span of this present administration? At the presentation of the road map by the ministerial committee to the minister on March 31, 2016, Dr. Fayemi said: “we want to ensure that this is a national document that is supported across board, and outlives any administration. The journey for sustainability for the sector has to be a continuous one.” This statement shows that the minister is aware that unless the policy is embraced by all stakeholders in the industry and institutionalised, it may just be another wasted effort. Considering all this, how then can the ministry ensure adequate implementation of this road map? The first thing for me is to be very clear about what our goal is. Prof. Allan McConnell, a political scientist, in his article published in the Public Policy and Administration Journal in February, 2015 stated that “a policy fails, even if it is successful in some minimal respects, if it does not fundamentally achieve the goals that proponents set
out to achieve, and opposition is great and/or support is virtually non-existent”. It is therefore important that the ministry keeps their focus on the main goals they set out to achieve and analyses contributions from all stakeholders into the document. Politics and politicking must be totally removed from this road map, and the interest of the industry and the nation at large must be supreme. To ensure that the road map becomes a national document that outlives the life of this administration as stated by the minister, the ministry needs to understand past failures and learn from it. A comprehensive research must be done into all the policies of the ministry since inception in 1995 to understand why many of these policies have not achieved desired results and how to properly tackle the challenges that hindered their success. There are many challenges as enumerated by the minister himself that impeded past administrations’ success, but one challenge that requires immediate solution is the issue of ownership of solid mineral resources between the federal government and the states. In his keynote presentation at a National Consultative meeting on the Validation of the Road map for the Solid Minerals sector which was hosted by the Kaduna State Government earlier this year, Mr. Supo Shasore, the former Attorney General of Lagos State, suggested a memorandum of agreement between the federal government and the states as an immediate resolution to the gap
A new legislation must be enacted to, among other things, resolve the issue of the gap created by the Constitution and the Land Use Act over the legal ownership of solid mineral resources
created by the constitution and the Land Use Act over the ownership of solid mineral resources found in any state. While Mr. Shasore recommendation may be an immediate short-term solution to the conflict, it is crucial that a lasting solution is found to this issue if the ministry’s road map is to outlive this administration as successive administrations may fail to recognise any memorandum of agreement with the states - as had been the case with many agreements signed by the government and some labour unions in the country. A point to consider is that states are equally looking forward to deriving maximum revenue from the solid minerals sector so as to augment their dwindling revenue from the Federation Account as many of the states cannot afford to pay the salaries of their workers again. Therefore, the states are as interested in the revenue as the federal government is. Also, along this line are the communities where these mineral resources are present. They also would not want to be shortchanged. A new legislation must therefore be enacted to, among other things, resolve the issue of the gap created by the Constitution and the Land Use Act over the legal ownership of solid mineral resources and also, the new legislation must create avenues for joint ownership among the federal government, the states, the investors and the communities where the minerals are found. Furthermore, to ensure that mining sector development road map becomes a national document, the ministry must communicate the goals and objectives of the document clearly and make sure it is well understood. I mentioned earlier that government must be very clear on what the goal of the mining industry is; they must also be consistent with this goal. However, no matter how clear or consistent these objectives are, if they are not well communicated, all the effort put into it would have been a total waste. To communicate would mean to ensure the other party fully understands what is being said. The ministry must therefore ensure that all the stakeholders involved in the implementation of the road map fully understand what the government wants, what their role is and how to play the role. ––Awe, a geologist, wrote from Lagos
Blood Connects Us All
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The risk of HIV infections due to blood transfusions is still high and a major public health issue in Nigeria, reckons Stella Agbim
oday all over the world, blood donors are celebrated for their magnanimity in saving lives. This year 2016, the World Health Organisation (WHO) celebrated World Blood Donor Day (WBDD) with the theme, “Blood Connects Us All.” In the many years of the global HIV/ AIDS epidemic, safe blood supply is a critical concern for stopping the transmission of HIV for developed and developing countries alike. Over the years great strides have been made in improving blood safety, but it continues to be an ongoing challenge in developing countries, requiring improved infrastructure and ongoing technical assistance. The National Agency for the Control of AIDS (NACA), through its mandate has made blood safety a critical component of its HIV prevention and control activities. According to a recent report by the WHO, people who live in developing countries, especially sub-Saharan Africa, are more likely to receive blood that is contaminated with infectious diseases like HIV, hepatitis, malaria and syphilis, than industrialised nations. This is because these countries have a higher prevalence of infectious diseases, inadequate antibody screening (in some countries) and a higher risk of HIV contamination in blood supplies despite antibody screening. Some countries are unable to test blood because they cannot afford the necessary reagents and test kits. In sub-Saharan Africa, 22% of countries report that they do not have an adequate system to store blood. They lack the necessary facilities, as well as consistent electricity to refrigerate blood and blood products. (Refrigeration is necessary to prevent bacteria growth in the blood products.) In addition, about 51% of countries in the area report that they experienced interruptions in general blood supplies. This is especially common in areas that are faced with political instability and armed conflict. In addition, poor countries lack funding to employ and train healthcare workers to handle blood and blood products safely. Many countries are dependent on emergency blood donations from paid donors or family members. In fact, volunteer donors account for less than half of the blood supply in developing countries. However, research shows that blood collected from paid or family donors is more likely to be contaminated with HIV. This is because many HIV-infected individuals have incentive to donate blood if they will receive money. HIV-infected family members may be unaware of their infection, but feel obligated to donate blood in order to help their relative. In addition, many countries have cultural beliefs that do not support blood donations, and their governments and other federal institutions do little to counteract these ideas. Very few developing countries have made substantial efforts to encourage voluntary blood
donation. In areas that have high HIV prevalence rates it may be difficult to identify low-risk volunteer blood donors. In poor countries, women and children (ages one to three years old) require the most blood transfusions. According to the WHO, more than half a million women die each year from complications related to pregnancy and childbirth worldwide. About 99% of these fatalities occur in developing countries. It is estimated that children who suffer from severe anemia as a result of malaria receive up to 70% of all blood transfusions in Africa. In countries with a high prevalence of HIV among blood donors, this risk is especially high. However, several studies suggest that blood transfusions are not the major cause of HIV transmission in most countries. Instead, unprotected sexual contact and injection drug use are the main causes of HIV transmission in most countries for which women have been noted to be vulnerable. Of the 191 WHO member states, only 43% test blood for HIV, hepatitis C and hepatitis B viruses. Researchers estimate that transfusion-transmitted HIV infection accounts for 80,000 to 160,000 infections annually, contributing 2-4% of all cases of HIV transmission. The WHO estimated that 25% of the blood transfused in Africa was not tested for HIV in the year 2000. Consequently, about 5-10% of HIV infections in Africa in the year 2000 were transmitted by blood transfusions. Since the 1980s, there has been a major international effort to reduce the risks associated with blood transfusion in Africa. In Kenya, the WHO estimates that no more than 2% of blood transfusions contain HIV antibodies. In South Africa, which has a high incidence rate of HIV, the National Blood Service did not find any evidence of HIV transmission through blood transfusions among the 881,673 transfusions found in their records. The northern state of Uttar Pradesh, India’s most populous, topped the list with 361 patients found infected with HIV due to contaminated blood in hospitals, followed by western states of Gujarat and Maharshtra with 292 and 276 respectively while a total of 264 cases were recorded in the capital New Delhi. According to NACO’s website, they argue that the data collected was not scientific as it was based on subjective responses from patients and reflected less than one percent of total HIV-positive cases. This is evidently clear because access to safe blood is limited, especially in rural areas, because of a lack of proper screening devices, the government estimates that about 2.5 million Indians are living with HIV/AIDS out of a population of 1.25 billion. Still on transfusion infection, there is also a high incidence of transfusion related HIV infection reported in Nigeria. The incidence of HIV due to transfusions given to children with sickle cell
anaemia was found to be 1.8% in a teaching hospital in Zaria; also the incidence of transfusion-related HIV infection in the University of Nigeria Teaching Hospital (UNTH) in Enugu was 1.2%. The incidence of transfusion related HIV infection has to be considered in the context of the prevalence of HIV in Nigeria. The HIV incidence among blood donors in the city of Kaduna was noted to be 2.8%. The adult HIV prevalence rate in Nigeria, the largest country in sub-Saharan Africa, was 4.6% as at 2008. Despite the regulations introduced by the NTBS, the risk of HIV infections due to transfusions is still high and is still a major public health issue in Nigeria. There are multiple reasons for the continued high incidence of transfusion related HIV infections in Nigeria that includes the high endemic incidence of HIV. The guidelines outlined by NTBS have not been widely implemented. Most donors are still being paid. Since 2006, 90 to 95% of donors in Nigeria are still being paid for donations. A recent disturbing report revealed that unhealthy individuals were still being allowed to donate blood and seek payment to offset poverty. Sensitive and organised screening and questionnaires are not being used. The donor deferral option has not been widely implemented. There are an insufficient number of established safe transfusion centres to meet the country’s need for safe bloods. Therefore, blood is collected, screened and administered by hospital based transfusion centres. The standard of care in processing blood varies at different hospitals. There is a lack of a blood system infrastructure and shortage of skilled professionals. Although public health is administered by the government, the private sector accounts for about 70% of all the health facilities in the country. Some of these private health facilities have no standard at all that ensures blood safety. According to the Nigeria National Blood Transfusion Service, more than 80% of blood collected and transfused in Nigerian hospitals is not properly screened. As established earlier, the chief and only aim of blood transfusion exercise is to save life. This aim would be defeated if the blood that is to be given is contaminated and unsafe. The delicacy of blood transfusion requires the highest concentration, thoroughness and professionalism from health care givers. It is pertinent to train and retrain health care providers on the safest ways to conduct blood transfusion processes so as to ensure that the patient does not end up with an incurable disease while trying to treat a curable ailment. ––Dr Agbim is Assistant Chief Communication Officer, NACA, Abuja
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
LETTERS PLIGHT OF MEDICAL DOCTORS
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igeria is the only country where one is expected to perform optimally while in one of the harshest environments. I was at a function recently in Illinois, United States when an American soldier walked in with his uniform. Everybody in the gathering stood up in reverence to the soldier. For about five minutes, I was confused. I was aware that we were not expecting a guest in the gathering but while the drama unfolded, I learnt that they normally reverence their military officers who lay down their lives for the defence of America. I was shocked to the marrow. I reminisced how at times our own soldiers in this part of the world would be standing on the road waving to motorists in order to hitch a ride to their destinations, but our drivers going in the same direction would blatantly refuse to help. And we still want them to lay their lives for the defence of our territories ? That is the pathetic Nigerian story.These soldiers die that we may live. Today, every Nigerian wants the medical doctors to perform like their counterparts in the USA, UK, etc., without bringing down the working conditions and remuneration packages obtainable there to our own country. It is indisputable that the efficiency of labour is determined by two major factors: an optimal
Health Minister, Prof. Adewole
working condition and good remuneration. Who bothers to compare the salaries, per annum of American doctors and those in Nigeria? I was in a restaurant recently where bank officials sitting close to me were discussing the money paid to doctors. One was saying that she thought doctors were well paid, until she was in the unit that processes the payment of salaries for doctors. They said all sorts of things. I kept quiet, after all, nobody knew my identity. These bankers were aware that we are being paid peanuts because they had the opportunity of perusing our salary schedule. What of the average Nigerian out there
who erroneously believes that we are paid millions as our salaries hence everybody in the family (including extended family) looks up to us for any financial help. If we dare say no, the tales will be steeped in intrigues and spiced with oral acrobatics. To an average Nigerian, doctors are humanitarian workers. Yes, I accept that obvious fact but we are not living in houses donated by humanitarian governments/ agencies; our children don’t go to schools built by humanitarian agencies where tuition fees would be free. We don’t drive humanitarian cars and when we or our spouses go to the market to buy things; we are
not given what we want so that humanitarian government can pay for us later. We live like other Nigerians and when we issue cheques to people and if they bounce due to insufficient funds in the accounts, we are also liable to criminal prosecutions just like other Nigerians. When I worked as an adhoc member of Ebola Operation Centre, Port Harcourt, during the 2014 Ebola epidemic, we saw how the representatives of WHO, who were the ‘real’ humanitarian workers, were hosted. They did not lodge cheap hotels; they did not eat the cheapest food because they were humanitarian workers. They moved with posh cars. They enjoyed the best form of life one could enjoy while rendering humanitarian services. If they were on the road, they were accompanied by security escorts to avoid being kidnapped. But here, kidnapping of doctors is no longer news. The unlucky ones die in custody of the kidnappers while our security agents are still ‘on top of the situation’. Kidnappers will leave politicians who have rendered them useless and face the same doctors who the average Nigerian believes is rendering humanitarian services and who try to eke out a living so they can treat all citizens in different social classes. What an injustice! Many doctors performing creditably well on American
IN MEMORY OF NIGERIA’S FUTURE “The future comes slowly, the present flies and the past stands still forever.” - Johann Friedrich Von Schiller.
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fter running its first full circle four-year term, 2019 will put to test the capacity of the ruling All Progressives Congress (APC) to renew its contract with Nigerians as well as the opposition’s ability to reassess itself, especially, in the light of significant challenges of poverty, unemployment and ethno-religious fundamentalism currently confronting the country. Well, while some of us on this side of the divide may not be seeing what others elsewhere are seeing in terms of the epileptic existence, structural weakness and economic vulnerability that have unfortunately-yetunderstandably taken the shine off this administration, that Nigerians are hungry and that President Muhammadu Buhari needs to put some smiles on their faces before the situation gets out of hand is no longer in doubt. As it stands, there is too much anger, which typifies the frustration of the people; and there’s too much capability to deliver violence in the midst of little or no tolerance. Perhaps, the more reason there are so many deaths in the land.
With the benefit of hindsight, the 2015 presidential poll was a battle fought, largely, between a “populist appeal” and an “outlandish profligacy”. In that election, Nigerians saw in Buhari a clear, credible, reliable, forward-looking and development-oriented leader who would not only give the arrogance of office and insolence of power that had taken the better part of former President Goodluck Jonathan’s government a run for its money, he was also seen as the preferred brand who possessed an enormous amount of political capital to take key transformative decisions that would positively affect the fortunes of the downtrodden. Little wonder the former president was bent on capturing power by any means and at all costs. Though the rest, as it is often said, is history, the reality in this widely-diversified, ceaselesslyvarying, half-organised and half-conscious society of which the electorate forms a part, is that Nigerians are always at home with “the concept of change in the metaphysical sense but not in any way that hurts them and their families or friends.” This is where the problem lies and this is why the government has to do more in terms of communicating well with the citizens if it is indeed interested in retaining the electorate’s confidence in 2019. So far, so fair for the tragedy of victory which is
much more than its defeat! Key indices have so far attested to how the worst of Buhari’s government could be preferred to the best of Jonathan’s. But that is not what we are saying here. The rate at which Nigeria is going is very worrying and something needs to be done to salvage the precarious situation. Precisely, the naira is in bad shape, revenue generation is proving to be pressingly challenging even as the country is seeing a lot of household and international debts. Oil production recently sank to as low as 800,000 bpd even as government revenues have declined by more than half. While it cannot be denied that this government has done some good job in its anticorruption crusade, it needs to be noted that less than 10% of our collective patrimony can actually be attributed to this socio-economic malaise while a greater percentage of the rest is siphoned out of the country by multinational companies with little or no effort by the government to remedy the situation. In the first quarter of 2016, Nigeria’s Gross Domestic Product (GDP) was said to have contracted by 0.36%, the first negative growth in many years. During this period, unemployment rate stood at 12.1%; underemployment, 19.1%; and youth unemployment, 24%. Even, in crime rate, Nigeria ranks ‘high up’ there, Boko Haram terrorists and
Niger Delta militants being her ‘prized’ jokers! As a matter of fact, Nigeria was said to have had the highest case of kidnapping in 2013 and 2014, after equally-endowed countries like Mexico and India. Threateningly too, she’s found a ‘comfortable’ seat among world’s most dangerous countries like Yemen, Afghanistan, Iraq, North Korea and Libya. And, as if these are not enough, the murderous activities of Fulani herdsmen have ‘spiced’ our broth as world’s fourth most deadly terrorist organisation! In his remarkably personal book, ‘How will you measure your life?’ Clayton Christensen describes management as “the most noble of professions, if practised well.” Christensen might be right, at least to the extent that “no other occupation offers as many ways to help others learn and grow, take responsibility, be recognised for achievement, and contribute to the success of a bigger team and a bigger purpose.” But then, I doubt if those who contended that Buhari was too old a warhorse to lead a country as vastly endowed as Nigeria on the road to socio-economic recovery were not too enmeshed in the intricacies of inanity to have realised that the major contenders for Barrack Obama’s throne are also drinking from the same cup of age with our president. –––Abiodun Komolafe, Ijebu-Jesa, Osun State
soil are mostly Nigerians but let them come back here, you will never hear about them again and Nigerians don’t bother to ask why. Nigerians want us to use bare hands to catch poisonous snakes. Nobody sits down to compare the percentage of our annual budget that goes to the health sector in a fiscal year with those in the US or UK, etc. It’s unfair to address unequals as equals. Go to our tertiary hospitals, how many of the world class diagnostic machines are there? Even the primitive ones there, how many are functional? But we all want Nigerian doctors to perform wonders. We have big companies in states where tertiary hospitals are located, but how many of the companies assist the hospitals as part of their corporate social functions? Imagine power outage in tertiary hospitals in the Niger Delta for no other reason than lack of money to buy diesel for the generators. But we have multinational companies in the Niger Delta making their dollars from our own oil and sending
the money to their countries while our people are dying of treatable and curable diseases. How many times do doctors defray the hospital bills of the patients they managed, buy their drugs and still feed them among other logistics? Who bothers to bring that to the knowledge of the Nigerian public? But let the doctors go on strike due to government refusal to implement agreements earlier reached, we would be demonised by the members of the press as professionals that are insensitive to the plight of their patients, wicked. I ask: where were the press and members of the Nigerian public when government blatantly refused to honour agreements reached with doctors? Where were they when my colleagues were being kidnapped at their work places? Where are they now as my colleagues in many states are being owed at least four months salaries? It is unfair to compare two things that are not supposed to be compared in the first place. ––Dr Paul John, Port Harcourt
LAGOS AND THE NUISANCE OF LAND GRABBERS
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uying a piece of land in Lagos State and putting up a structure on same is usually a tall order, thanks to the belligerent activities of land grabbers and land speculators popularly known as Omo Oniles. They make life unbearable for intending house owners through their voracious frivolous demands. There have been many instances where unsuspecting buyers paid for land only to be told to come and pay again to reclaim their land, or settle some aggrieved family members who were not factored into the sharing formula of the previous payment. Omo Oniles simply have no regard for the law of the land as they have become a law unto themselves, charging prospective land owners’ different absurd bills as it pleases them. They also ensure the buyers are not free from their strangulating grip as they exact different fines on them, at every stage of the development of their property. Prominent among such fines are foundation bill, lintel bill, decking bill, roofing bill, fencing bill and lots more. The value of such bills could sometimes be equivalent of the total value of the land or a little less depending on their scale of relevance and location of the property. In addition, they employ the use of force and threat in collecting these monies from their victims who are at their mercy. Some of their victims have had their structures demolished as the Omo Oniles storm their sites in commando-like style, wielding harmful weapons and attacking the workers on site. Property owners are often mercilessly beaten up, wounded and forced to stop work until payment is made. Through this trend, land
grabbers have successfully stalled the development of many projects. Consequently, in Lagos, individuals and organisations planning to put up structures have learnt to factor the cost of Omo Oniles into their expenditure. This has not only hindered development; it has also made individuals and organisations to consider relocating to neighboring states where the activities of land grabbers are not so pronounced. The activities of land grabbers are not only illegal, but anathema to society, development, peace and progress. They speculate on land with little or no recourse to land use laws, as they engage in the illegal sale of government land to unsuspecting individuals. They sometimes even dispossess people of land that are legitimately bought from the government. They also sell lands with no proper planning or cognisance of a mapped out outlay; this is especially so, with new satellite settlements in the suburb of the state. Some houses within such locations do not have a pathway for movement as other houses have been erected on their path. More appalling, some are built under high tension wires. Although some of the notorious ‘Omo Oniles are known but the society is helpless in dealing with them. To stem the tide of Omo Oniles nuisance, there is a need for accurate and efficient record keeping where the history of every property is preserved and conscientiously kept and protected. The courts are congested with land cases because landed property are not properly documented. ––Temilade Aruya, Ministry of Information & Strategy, Alausa, Lagos
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THISDAY, THE SUNDAY NEWSPAPER • JULY 31, 2016
INTERNATIONAL
Containment of Nigeria’s Second Civil War and other Internal Threats to National Security
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hreats to political stability are not only multidimensional but are also on the increase in Nigeria of today. With the rate of inflation currently put at 16.5%, some Nigerians argued that the country is faced with economic recession. The Minister of Finance, Mrs. Kemi Adeosun, called it technical recession while some others are even talking about depression in sight. Whatever is the case, the economy is seriously challenged by vandalisation of oil pipelines, and therefore, decline in production and foreign exchange earnings. The rate of unemployment is on the increase and so has been power outage. In fact, the Office of theAccountant General of the Federation has said that Government had recorded a deficit of N890.9 billion in its fiscal operations in the period from January toApril 2016.As a result, Government has been advised against new borrowings. Additionally, the International Monetary Fund’s (IMF) prediction is that Nigeria’s economy may contract by 1.8% in 2016, while the current growth rate of 3.5% is to reduce to 1.1% next year as the economy adjusts to foreign currency shortages because of ‘lower oil receipts, low power generation and weak investor confidence.’As Nigeria’s GDP has also contracted by 0.36% in the first quarter of 2016, the PMB administration is addressing the problem of corruption by court prosecution. Many Nigerians, particularly the Nigeria Labour Congress (NLC), are calling for the abolition of security vote for the President of Nigeria and State Governors.According to the NLC president, Mr.Ayuba Wabba, ‘it is an avenue for corruption. In good governance, all monies spent by government are budgeted and transparently applied.’ That is what generally obtains elsewhere, he further noted. Kidnappings and religious intolerance have become the fashion for illegal money-making. On July 9, 2016, Deaconess Eunice Olawale Elisha was murdered at the pipeline junction in Kubwa, FCT, while preaching the word of God. On Sunday, July 24, 2016 Pastor Kayode Bajomo of the Redeemed Christian Church of God (RCCG) was kidnapped around 7 am in his church at the Santos bus stop in Ikorodu, Lagos State. The kidnappers have been insisting on the payment of a ransom of N100 million (The Punch, July 26, 2016, p.4). Deepening societal ills are another challenge: fathers rape their daughters, wives kill their husbands and vice versa for very flimsy reasons, men of God display satanic attitudinal disposition, and, in fact, leaders who are required to be beacon of light, now lead in the promotion of corrupt practices and fraud, thus making the thrust of President Mohammed Buhari’s (PMB) WarAgainst Corruption as basis of development of a New Nigeria, more complex and non-appreciated. The variegated reactions to PMB’s war on corruption necessarily prompt any good discerning mind to ask how many people in Nigeria really want corruption completely stamped out? Nigerians, most unfortunately, assess the manner of approach but hardly the ultimate objective of the war on corruption.Allegations of sex scandal, budget padding, etc are simply politicised rather than taking the bulls by the horn and investigating the issues. For how long will Nigeria remain fantastically corrupt? Is Nigeria heading towards de-unionisation initially predicted for 2014? Is the NationalAssembly on the same page with the Executive arm of government on the issue of eradication of corruption? Without doubt, this situation cannot but impact negatively on Nigeria’s international image. Two of these threats are noteworthy for further analysis in this column: implications of the allegation of sexual scandal by three legislators; and the new ultimatum given to PMB by theAdaka Boro militants by which the fragmentation of Nigeria would be a reality onAugust 1, 2016.
Diplomacy of Sexual Misconduct
InApril 2016, a ten-man contingent from the House of Representatives went on official trip to Cleveland, Ohio, United States to participate in the International Visitor Leadership Programme on Good Governance, organised by the US Government. In a June 9 2016 letter from the USAmbassador to Nigeria, Mr. James Entwistle, and addressed to the House Speaker, Mr. Yakubu Dogara, three of the Nigerian Representatives were accused of sexual misconduct at their Renaissance Hotel during the visit. They are Mohammed Garba Gololo (APC, Bauchi), Samuel Ikon (PDP,Akwa Ibom), and Mark Terseer Gbilla, the Deputy Chairman, Committee on Petroleum Resources (APC, Benue). Ambassador Entwistle alleged that ‘the US Department of State and the Cleveland Council on WorldAffairs received reports from employees of the Cleveland Hotel where the representatives stayed, alleging the representatives engaged in the following behaviour: “Mohamed Garba-Gololo allegedly grabbed a house in his hotel room and solicited her for sex. While the housekeeper reported this to her management, this incident could have involved local law enforcement and resulted in legal consequences for Representative Gololo.’ Regarding the two others, Ambassador Entwistle has it that ‘Mark Terseer Gbilla and Samuel Ikon allegedly requested hotel parking attendants to assist them to solicit prostitutes’ (The Punch, July 15, 2016, p. 7) The accusation appears to be partly inspired by the consideration that the hotel staff had identified the accused legislators in a group photograph taken by the Nigerian group. Even though seeking to determine the veracity of the allegations raises doubts at the level of the Nigerian audience, diplomatic procedure and practice may not suggest thatAmbassador Entwistle is wrong. This is why the inquiry by a joint House of Representatives Committees on Ethics/Privileges and Foreign Relations is perfectly in order. The lead Chairpersons of the Joint Committee were Honourable Ossai Nicolas Ossai and Nnnena Ukeje. When the Honourable Minister of ForeignAffairs (HMFA), Mr. Geoffrey Onyeama, was invited to brief the Joint Committee, he had reportedly travelled to Kigali, Rwanda to participate on behalf of Nigeria
VIE INTERNATIONALE with
Bola A. Akinterinwa Telephone : 0807-688-2846
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basis of what he was told.According to the HMFA, ‘these were allegations and nothing more; that as far as they were concerned, the matter was closed; and that the allegations did not indicate a position that the ambassador had already passed a judgement or the US government.’ And perhaps more significantly, the HMFAmade it clear that if the person who made such a serious allegation was not willing to testify, according to Mr. Entwistle, and if those alleging sexual misconduct against them only did so through identification of the law makers in photographs, the HMFA’s argument of lack of good evidence cannot but be quite tenable. However, it still does not mean that the ‘matter was closed.’ If it was closed, there should not have been any further basis for withdrawal of the US visa on the passports of the accused. While the HMFAbefittingly responded well to the enquiries of the joint House Committee, by particularly reminding the legislators ‘not to put themselves in a position that could deny Nigerians participating in such programmes in the future, it is like a caution.’ In this regard, one major flaw in Nigeria’s diplomacy is the unfettered access of people to senior government officials without control. The HMFArightly pointed out that the House cannot summon an ambassador to appear before a national institution because he is the Head of State of his country where he is serving and he enjoys sovereign immunity. Why are Nigerian legislators ignorant of this basic rule?
Threats of another Civil War and Foreign Policy
Buhari in the 29th Ordinary Session of the Executive Council of theAfrican Union. He requested for a shift in date, noting that he would return to the country on July 19. On this basis, July 20 was fixed again. On his return to Nigeria, the need to promptly brief the President and participate in the Executive Council on that same July 20 did not allow for his presence in the House Committees’ session. The Minister’s absence on two different fixed dates generated both diplomatic and undiplomatic statements. The diplomacy of the inquiry is quite interesting. It appears that the HMFAwaited until he had travelled to Kigali before conveying his inability to appear before the joint committee. In the same vein, his further request for postponement of his appearance was made on the very day of the expected appearance. In the words of the Chairman House Committee on Works, Honourable Toby Okechukwu, ‘what is uncomfortable to me is that the letter just arrived (in this place) today as we were about to start the hearing. This is a waste of man-hour and we must express our displeasure over this attitude of the Minister by sending strong words to him. The use of strong words in diplomacy is an expression of hostility and warning and can always be doused with technical diplomacy that balances friendship and enmity and not being the friend of one end and the enemy of the other. What the HMFAsimply did was to accept to appear in principle but wait until the last minute to give an excuse of a diplomatic illness in another form. This is the beauty of diplomacy which goes beyond simply askingAmbassadors-designate questions on LGAs or reciting NationalAnthem. On a very serious note, greater emphasis should always be placed on how much theAmbassadors-designate do understand their host countries. If anAmbassador-designate is mentally alert about his current host country, the likelihood of his being well connected and attracting new friends for Nigeria cannot but greater and in the national interest. This is whyAmbassadors-designate should be questioned on how to address the challenges of Nigeria’s Foreign and defense policies, as well as on macro-economic issues in the country. But it cannot be presumed that the joint House Committees set up to investigate the sexual misconduct of some legislators does not know what it was doing. The HMFAwas invited to brief the House on a Wednesday when the Federal Executive Council (FEC) normally holds its weekly meeting, meaning that the HMFAwas not expected to attend it. Expecting the HMFAto absent himself from the FEC meeting to the advantage of the House Committees is an expression of competition between executive diplomacy and legislative diplomacy. In this regard, Honourable Nnena Ukeje played the professional diplomat by offering a sort of Solomonic rationalisation often required in diplomatic practice.As put by Ukeje, ‘this is the first FEC meeting after he returned from Kigali. The President and other FEC members will expect to hear from him the outcome of the summit he went to attend particularly considering the fact that it was to elect a newAU Chairperson.’ In the absence of the HMFA, the joint House Committees ruled that Ambassador Entwistle should appear before the House Committee on Thursday, July 21 but still listened to the defence arguments of the accused.Ambassador Entwistle also displayed diplomatic professionalism by informing the HMFAthat his letter to the House Speaker was a private, confidential letter and that the purpose of the letter was simply to bring the allegations against the three Nigerian law makers to the attention of the House Speaker. The HMFAsubmitted that the allegations lacked evidence on the
Two main factors are currently pointing to another civil war in Nigeria: deepening suspicions in the relationships between Muslims and Christians; and militants’ intention to declare a Niger Delta Republic onAugust 1, 2016.At the Muslim-Christian level, there is a sort of Cold War which is hardly taken seriously in the erroneous belief that it cannot lead to destabilisation of the polity. Everyone pretends that there is nothing like a problem between them. If one takes a look at the pronouncements following a court ruling by which the wearing of Hijab in public schools in Osun State is allowed, on the one hand, and after the burial of Mrs. Eunice Olawale Elisha on July 23rd, on the other, several Christian organisations have warned that the only condition for ensuring Nigeria’s nationhood is for Islamic leaders to stop the promotion of hatred, replacing that with the promotion of democracy which ensures freedom of choice for all the citizens. The second factor, which is more pressingly disturbing, is the declaration of intent by theAdaka BoroAvengers (ABA) to declare the Niger Delta Republic (NDR) onAugust 1, 2016. In a statement reportedly signed by General EdmosAyayeibo, ‘theAdaka BoroAvengers and all the freedom fighters in the Niger Delta region have met and come to a conclusion that we (they) are declaring the Niger Delta Republic three weeks from today (Sunday, July 24th). TheABAnot only called ‘on the Nigerian government to move out all military personnel and all government agencies out of the Niger Delta’ but also called on (their) ‘fathers, mothers, brothers and sisters living in the northern parts of Nigeria to return home immediately.’ In the same vein, theABAwarned ‘northerners and westerners to leave the Niger Delta region immediately within three weeks from now, for their own good. If they refuse to heed to our warning, they will use so many as example in the Niger Delta Republic on the due date.’ What is particularly noteworthy in the statement is two-fold: resolution of the ABAto take their ‘independence by force’ and their total confidence and readiness ‘for total war’. In the words of theABA, ‘enough is enough ... we are taking our independence by force. We have our foreign backers, so we are not afraid of the Nigerian government but ready for total war.’ The foregoing quotations reveal more than stated. First, by requesting non-Niger Deltans to pack out suggests that the non-Niger Deltans are, at best, foreigners in the region. This point is also true of other Nigerians living outside their natural community. Second, are the Niger Deltans seeking independence by themselves or they are being used by their foreign backers?Are foreigners not really behind boko haramism in Nigeria? Now that boko haramism is acutely on the sick bed waiting to be finally pronounced dead, are foreigners not really trying to sustain boko haramism through theABAas a renewed framework? What is the extent of seriousness to be attached to the threat? How will the Government fight in two different theatres simultaneously: MASSOB and ABA? Now that the militants are also attacking the Yoruba in Ikorodu, who will the Yoruba support this time?
Suggested Containment Strategies
As PMB still enjoys popular support, he should quickly change his style of governance in all dimensions by seeking public support for any controversial issues. For instance, if there is need to change an existing policy of government, the NationalAssembly should be required to debate and vote on it. If the policy is critically essential, there is nothing wrong with the organisation of a plebiscite on it. Whenever there is a lull in the relationship between the Executive and the Legislature, the people should be required to pronounce on it. Secondly, PMB should avoid unnecessary rigid policy statements. Even if he does not want to negotiate, the ideal thing is to allow the relevant SpecialAssistant orAdviser to make the pronouncement first in order to test the ground. Thirdly, PMB should also introduce regular public briefings on policy matters so that it is not when PMB is visiting foreign countries or receiving visitors that Nigerians will be told what new policies have been adopted. Fourthly, and most importantly, PMB should quickly instruct or encourage all media houses to open discussions on the implications of the declaration of a Niger Delta Republic for the purposes of public enlightenment and support which is indispensable in the event of any war. Without this, it is Nigeria’s international image that is being tainted and that has the great potential to frighten away new investors.Astitch in time, it is believed, saves nine.
T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
CICERO/ INTERVIEW
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
BUSINESS QUICK TAKES Interest Rates
Deposit Money Banks have begun an upward review of the interest rates on alloutstandingloans.Thedevelopment followed Tuesday’s increase of the MonetaryPolicyRatefrom12percent to 14 per cent by the Central Bank of Nigeria’sMonetaryPolicyCommittee. Multiplebankingsourcessaidthatthe lenders would as early as next week begin to dispatch letters to their customers, informing them of the upward review of the interest rates on theirloans.“Banksdon’twastetimeon matters like this. The increase in the MPR means interest rates on loans have to go up.We have started writing letters to our customers. A few may go this week, while more will go next week.Customers willget theletters in emails and hard copy,” reportedly said. Othertopbankofficials,whoconfirmed the development, did not state the rate of increase in the interest rates on the outstanding loans. They said the upward reviews of the rates were being done with keen consideration for certain conditions relating to each bank customer. Banking experts say the MPR, often called the benchmark interest rate, is the yardstick for other interest rates bank charges on loans advanced to their customers.
Payment System Currency traders
CBN Sold $1.13bn Forex to Banks, Others in May Kunle Aderinokun
The Central Bank of Nigeria has said its foreign exchange sales to the authorised dealers, including banks and others, amounted to US$1.13 billion in May 2016, representing 2.6 per cent decline compared to the level in April 2016. The apex bank revealed this in its just-released Economic Report for May 2016 obtained by THISDAY. The report also disclosed that, foreign exchange inflows through the CBN, at US$1.51 billion, rose by 31.8 per cent, in contrast to the level in the preceding month, but fell by 13.7 per cent relative to the level at the end of the corresponding period of 2015. According to the CBN, “The development reflected a 272.8 and 116.0 per cent rise in non-oil inflow relative to the levels in the preceding month and the corresponding period of 2015, respectively. Aggregate outflows through the CBN, at US$1.71 billion, fell by 19.8 and 41.5 per cent, compared with the levels in April 2016 and the corresponding period of 2015, respectively. “The development was driven, mainly, by the decrease in interbank sales, other official payments, and 3rd party MDA transfers. Overall, a net outflow of US$0.20 billion, was recorded through the CBN, compared with the net outflow of US$0.99 billion in the preceding month.” Similarly, the CBN noted in
MONEY the latest economic report that aggregate foreign exchange inflow into the economy was US$3.93 billion, in May 2016. This, banking regulatory authority noted, represented 6.2 and 39.0 per cent, decline relative to the levels at the end of the preceding month and the corresponding period of 2015, respectively. “The development relative to the preceding month was driven by the 20.4 per cent decline in inflow through the autonomous sources. Of the total inflows, receipts through the CBN and autonomous sources accounted for 38.3 and 61.7 per cent, respectively. Non-oil sector inflows, at US$1.06 billion (27.0 per cent of the total), rose by 278.6 per cent above the level in the preceding month. Autonomous inflows fell by 20.3 and 48.3 per cent, below the levels in the preceding month and the corresponding period of 2015, respectively, and accounted for 61.8 per cent of the total,” it added. It noted that, “the average exchange rate at the inter-bank segment remained unchanged at N197.00 per US dollar, same as in the preceding month and the corresponding period of 2015.” The apex bank, however, pointed that in the review month, the gross external reserves, at US$26.30 billion, declined by 1.1 per cent relative to the preceding month’s level.
Besides, the CBN also disclosed that relative to the level at end April 2016, growth in the key monetary aggregate was moderate at the end of May 2016. “On month-on-month basis, broad money supply (M2), at N20,971.21 billion, fell by 0.03 per cent, in contrast to the increase of 1.3 per cent at the end of the preceding month. “ According to the bank, “The development reflected solely the fall of 1.97 per cent in net domestic credit of the banking system, which more than offset Non-oil sector inflows, at US$1.06 billion (27.0 per cent of the total), rose by 278.6 per cent above the level in the preceding month
the increase of 3.19 and 3.85 per cent in net foreign asset and other assets (net) of the banking system, respectively.” “Narrow money supply (M1), however, at N9,391.87, grew by 2.8 per cent, relative to the level in the preceding month. The development, relative to the preceding month reflected wholly the increase of 3.9 per cent in demand deposit component. Reserve Money (RM) declined by 1.6 per cent at the end of the review month. Also, the May CBN report showed that banks’ deposit and lending rates generally trended upward during the review month
based on available data. “All deposit rates of various maturities rose from a range of 2.53 per cent – 6.83 per cent in the preceding month to 3.53 per cent – 8.01 per cent at the end of the review month. The weighted average term deposit rate also rose to 6.38 per cent from the 5.19 per cent recorded in the preceding month. Similarly, the weighted average prime and maximum lending rates rose by 1.05 percentage points and 1.06 percentage points to 17.82 per cent and 27.93 per cent, respectively, at the end of the review month.” “Consequently, the spread between the weighted average term deposit and maximum lending rates narrowed from 21.69 percentage points to 21.55 percentage points in May 2016. However, the spread between the average savings deposit and average maximum lending rates, widened by 0.05 percentage point to 24.40 percentage points at the end of the review month,” it added. The report also showed that “the total value of money market assets outstanding, in May 2016, stood at N10,226.3 billion, showing an increase of 2.8 per cent, compared with 2.0 per cent growth at the end of the preceding month.” According to the apex bank, “The development was attributed, largely, to the 51.9 per cent increase in the Commercial Paper outstanding.”
The Central Bank of Nigeria (CBN) has saidthatattainingthePaymentSystem Vision2020(PSV2020)wouldbethe catalyst to revolutionise the payment systeminNigeria.TheDirector,Banking andPaymentSystemDepartment,CBN, Mr.DipoFatokun,saidachievingthePSV 2020 would help facilitate economic activities as wellas boost thefinancial inclusion drive of the CBN. Onhispart,theHead/ProjectManager, PSV2020, Mr. Sam Okojere, stressed that the cash-less policy is the future of payments in Nigeria. He noted that the PSV 2020 initiatives are aimed instituting a robust national payment system that is nationally utilised and internationallyrecognised.Theynoted that Nigeria has witnessed an impressive growth of electronic payments and a shift from dominance of cash as a means of payment. Furthermore, they listed the deployment of the real timegrosssettlementsystemswhere transfer of money or securities takes placefromonebanktoanotheronareal time,theadoptionofmobilemoneyas a major channel, the implementation of the Treasury Single Account; and migration of all payment cards from magnetic stripe technology to Chipand-PIN, otherwise known as EMV, as some of the steps towards achieving PSV 2020.
Digital Inclusion
African governments have been enjoined to collaborate with the private sector in creating an enabling environmentthatwillhelpboostdigital inclusionforthecontinent.Head,Mobile for Development at GSMA, Yasmina McCarty, who made the call in Dar Es Salaam,Tanzania said that majority of the African people who dwell in rural communities,wereyettobeconnected, thus creating huge connectivity gap between the urban and the rural dwellers.Sheemphasisedtheneedfor Africangovernmentstorevisittheirtax policies and reduce taxes imposed on telecoms services adding that a study on mobile tax reforms carried out on some African countries in 2015 by GSMA, showed that the reduction in taxes in some African countries like Democratic Republic of Congo (DRC), Ghana, Tanzania and Tunisia, brought about significant impact on the growth of telecommunications in those countries.
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
BUSINESS/ECONOMY
Textile market on Lagos Island... can govt fully capture the informal sector in the tax net?
As Improved Non-oil Revenue Offers Hope for Budget Financing...
In this report, James Emejo examines the rebound of tax yields against oil revenue and concludes that with further broadening of the nation’s tax base and proper enforcement of tax laws, as well as economic diversification, the current concerns over the ability to fund the 2016 budget could subside
O
ne of the major dilemma of the Buhari administration had been the difficulty in funding the 2016 budget which implementation had since its passage been below expectation. The N6.07 trillion expenditure plan-tagged “the budget of change” was signed into law by President Muhammadu Buhari based on a crude oil benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day. The capital component was put at 30 per cent of the fiscal plan, with the remaining 70 per cent set aside for recurrent spending. The passage of the budget was a great relief to the economy which had suffered severely over an avoidable delay in its passage, a situation which has almost confined the economy to a recession. Nonetheless, since signing the budget into law, implementation which is a critical aspect of the document has remained slow, a condition which had on several occasions been blamed on paucity of funds, largely caused by the falling price of oil which has more than halved government’s earnings from oil sale. In an economy, which depends heavily on oil revenue to meet government financial obligations, the fall in oil price had caused serious challenges to public treasury as most states of the federation are currently unable to pay workers’ salaries, and had been surviving a bailout funds from the federal government. Only recently, the Minister of Finance, Mrs.
Fowler
Kemi Adeosun, said the government will not be able to completely fund what was appropriated in the 2016 budget due to paucity of funds, adding that fund would only be released based on necessity. It is on this note that the statement by Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, that the Federal Government was able to raise
over N500 billion, which was allocated at the Federal Accounts Allocation Committee (FAAC) in the month of June offers hope that the economy could successfully wade through the present fiscal crisis by relying on non-oil receipts. According to him, 70 per cent of the entire sum came from non-oil sources while 30 per cent accounted for oil revenue. This is a significant departure from an era where oil revenues often accounted for 80 per cent of monthly receipts. He further expressed confidence that the country could actually fund its budget through non-oil sources. The June FAAC allocation was significant given that it was the first time since the beginning of the current fiscal crisis that the three tiers of government had shared over N500 billion. Speaking when he led a delegation of Chairmen of State Boards of Internal Revenue, (SBIR) from the 36 states of the federation to the office of the Executive Governor of Ogun State, Mr. Ibikunle Amosun, on a courtesy, Fowler also said the FIRS had added over 700,000 new corporate accounts into the tax net, cumulatively bringing total registered taxpayers to 10 million including those of SBIRs. He added that the JTB had further set a target to include no fewer than 10 million additional taxpayers by December 31, 2016. The development offered much expectation from the non-oil revenue generating agencies whose roles are critical in government’s effort to look away from oil through broadening of the tax base and pursuing massive diversification of the economy.
However, the fact that a substantial portion of the non-oil receipt for June allocation came from backlog of proceeds especially from company income tax, which are seasonal and other arrears, which are unlikely to be reflected in next month’s allocation still leaves much to be done as there’s every need to urgently expand the tax base and enforce compliance whenever necessary. Several companies and wealthy individuals are believed to default in tax obligations. Interestingly, Fowler had further assured on the commencement tax enforcement. Coupled with the increasing efforts by the present administration to sufficiently diversify the economy into agriculture through various interventions in other key sectors of the economy, it is certain that if well implemented, non-oil revenue sources could help bridge the domestic component of borrowing to fund the 2016 budget deficit. The situation further demand that states doubled efforts to improve their internally generated revenue stream which had unfortunate dropped in 2015. Although all the 36 states of the federation altogether raked in a total of N682.67 billion in Internally Generated Revenue (IGR) in 2015, according to the National Bureau of Statistics (NBS), the amount represented a decline of 3.69 per cent or N25.18 billion when compared with the N707.85 billion they recorded 2014, requiring more efforts as government looks to relegate oil and its attendant consequences and embrace a more predictable non-oil sources to drive the economy.
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THE BANKING SERIES
Adeduntan
PHOTOS: ABIODUN AJALA
FIRST BANK CHIEF BANKER SPEAKS...
‘Our Loan Portfolio is a Reflection of How Integrated We’re to the Economy’ When Dr. Adesola Kazeem Adeduntan, the Managing Director/Chief Executive Director of First Bank of Nigeria Ltd, who only joined the bank as an Executive Director/Chief Financial Officer in 2014, spoke with THISDAY, it appeared he had been with the nation’s pioneer bank his entire professional career. Eloquent and humble with a calm demeanour, Adeduntan, who took the reins of office over six months ago, has a wealth of experience which straddles the financial industry. Before joining FirstBank, Adeduntan was a director and the pioneer Chief Financial Officer of Africa Finance Corporation (AFC). He had previously served as Senior Vice-President & Chief Financial Officer of Citibank Nigeria Limited and was a Senior Manager in the financial services group of KPMG Professional Services where he managed high profile assurance, financial and risk advisory engagements. He has garnered diverse expertise in treasury & financial management, risk management, accounting/auditing/internal controls, corporate governance, corporate strategy development and implementation, corporate finance, business performance management, business/financial advisory, investors, regulators and rating agencies relationship management, deployment and management of information
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THE BANKING SERIES ADEDUNTAN: OUR LOAN PORTFOLIO IS A REFLECTION OF HOW INTEGRATED WE’RE TO THE ECONOMY Cont’d from Pg. 21
technology, and compliance.An alumnus of several business schools having bagged Master’s Degree in Business Administration (MBA) from Cranfield University Business School, United Kingdom and attended executive programmes at Harvard, Cambridge, Oxford and INSEAD, Adeduntan had his first degree, Doctor of Veterinary Medicine (DVM), from the University of Ibadan. Adeduntan, who sits atop the bank, which history predates the creation of Nigeria, spoke with the THISDAY Team comprising Kunle Aderinokun, Chika Amanze-Nwachuku, Obinna Chima and Nume Ekeghe, on wide-ranging issues relating to the bank’s performance, its contribution to the economy, impact of the economic crisis on the bank, status of its loan portfolio, aspirations of the bank and the recent monetary policy of the Central Bank of Nigeria, amongst others
W
hat is your assessment of the performance of FirstBank since you took over?
FirstBank as you know is the largest bank in Nigeria and I assumed the leadership of the bank on January 1, 2016. I would say that within the very challenging operating environment in which we have found ourselves, we have successfully kept the bank intact. We have refocused the institution, but most importantly, we are managing the institution for value. For me, these are the key things. We do have a business with very strong fundamentals in virtually all the key metrics you want to look at, this institution remains a leader in this country. We have the largest number of branches; we have the largest number of ATMs that have been deployed in the country. Not only that, over the last six months, twice now, we have won an award from Interswitch as the only bank that has processed transactions in excess of 100 million transactions in a month. Again, that speaks volume about the fundamentals of our business and that also speaks volume about the depth of our business and service offerings.
Giving the headwinds in the economy, how has the bank been coping?
Again, because we are FirstBank, and because of the diversified nature of our business, we are present in the corporate business, we are very active in the commercial business, we are active in the SME business, we are very active in the retail business and we are also very active in the public sector segment. So we have a well-diversified business. So what that enables us to do is that when there is a major issue in any segment, other segments step forward. So we are benefiting from the wide diversification in our business. We also have the largest network of branches in the country. I’ll give a good example, when the North-east was almost a difficult place to run businesses, we felt the impact but the fact that we are diversified; the impact of such disruption wasn’t significantly felt on our financial performance. So we are benefiting from the fact that we have
a well-diversified business. We are also benefiting from the fact that we have a very strong management; we also do have a very strong board of directors and a combination of all these have helped in positioning the institution for continued growth.
Going back to your bank’s performance, your results last year and those released so far this year have also not been impressive. What are you doing to rekindle investor confidence?
I actually just came out from a session where we addressed investors and we presented our second quarter financial results because we released our second quarter results today (Tuesday 26th of July). You would see that from what we have done, we are cleaning up the books. But most importantly, is that the business fundamentals for the bank are very strong. We are profitable. We might not be the most profitable bank in the country today, but for us, we see profitability and also impacting the environment in which we operate as like twin objectives that we must meet. Again, that is one of the reasons that we must meet across the entire spectrum of the business landscape. Like I said our second quarter results which was officially released today basically supports what I have just said. We remain profitable and I acknowledge what happened last year that we needed to take significant provisions. But this year, even as we reposition the loan book, we have remained very profitable.
Can you take us through the numbers in the second quarter results? And also, we would like to know if the worst is over for FirstBank considering the massive provisions in 2015?
I don’t want to use numbers in isolation; other banks have not really released their results, so, it is difficult for me to say. But from what we have done, we believe it is a very decent performance and that the trajectory can only be up, it cannot be south again. Especially when you look at the fact that the budget that has been approved at the federal level, the implementation has commenced so we expect that to feed into the economy. The new forex regime
Adeduntan ... We have a business with very strong fundamentals in virtually all the key metrics
that the Central Bank of Nigeria (CBN) has also implemented and implementing, we also expect that to also feed into the economy and begin to fuel growth in the economy. Again, given the size of the institution, we tend to have our fair slice of these kinds of opportunities that would be thrown up by all these. So we expect that the trend should be positive. In 2015, we made provisions in line with international financial reporting standards. Again if you remember, 2015 was when the price of crude oil basically dropped dramatically. This bank, given who we are, we actually have the largest exposure to the oil and gas sector in the market because we have always been not just about profitability, we are about development and creating new generations of Nigerian entrepreneurs. So we partnered a lot of Nigerians that acquired oil assets from the international oil companies and when the price of crude oil dropped significantly, in line with international accounting standard we looked at our position and we needed to take incremental positions.
We would like you to shed some light on the tender undertaken by FirstBank on the strategic alliance agreement between Jide Omokore’s company, Atlantic Energy, and the Nigerian Petroleum Development Company (NPDC). We need you to explain this given that NNPC has taken over the tender? Does FirstBank still have a lien on NPDC’s oil blocks?
We basically financed Atlantic Energy and currently, that transaction is within the ambit of what NNPC is looking at vis-à-vis including the tender. Also, there is confidentiality of customer information. But what is known is the fact that we financed Atlantic Energy as far as the strategic alliance agreement was concerned and that whole strategic alliance with Atlantic Energy contract is currently being reviewed by NNPC.
So how do you plan to recover your money?
I can give assurance that we would recover the money. We do have the right level of security. Again, I am not at liberty
to disclose customer confidentiality. It is one transaction that both the management and the board of the bank are monitoring very closely. We are on top of that transaction.
Retail banking is one area a lot of banks seem to be looking into, considering what is happening in the economy, can you comment on efforts FirstBank has taken to remain dominant in that space?
Today, we are the biggest retail bank of all the commercial banks in Nigeria. As part of our strategic plan, retail banking would continue to be a key and significant part of our business. I mentioned the fact that today, we have the largest number of branches and that supports our retail strategy. We have the largest number of ATMs currently being deployed. Currently, we have about 2,600 ATMS and we are in the process of increasing that to about 3,000. Today we have more than 10 million customers that we provide different services to. Again for us, we are deepening our share of the retail banking market. Our focus is on migrating more and more of our customers to our digital banking platform. So today, we have FirstBank online which most of our customers now use. We also have FirstMobile which enables our customers to be able to transact banking business on their mobile phones. For our mass market customers, which are at the lower end of our retail segment, we also have Unstructured Supplementary Service Data (USSD) banking which again enables our customers to transact various transactions from their basic phones not even just the smart phones. Again, we have lined up a bouquet of products and bouquet of channels by which our various customers can access our bank and be able to transact business with us. For us, retail banking would continue to remain a key and a very significant part of our business. We have modernised our retail banking offerings like I have mentioned and we are the bank to beat when it comes to retail banking. We have positioned ourselves to be the leader in that particular segment.
The CBN just increased the monetary
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THE BANKING SERIES
‘OUR BUSINESS IS PROFITABLE AND FUNDAMENTALS FOR THE BANK ARE VERY STRONG’
Cont’d from Pg. 22
Adeduntan
policy rate (MPR) to 200 basis points what is your take on that and how has the forex policy affected FirstBank?
The outcome of the MPC that increased the MPR by 200 basis points did not come as a surprise to anyone. With inflation up to 16.5 per cent, the reality was that prior to today, we had a negative interest rate. Also don’t forget that part of what we need to do as a country is to make the local currency instrument more attractive to foreign investors as a way of attracting the much needed foreign currency liquidity to our market. So this decision did not come as a surprise at all to very watchers of the Nigerian economy. In fact, it is indeed in line with expectation. As for the forex regime, I think the CBN has taken the bull by the horn. By liberalising the market, willing buyer and willing sellers would go through the market. We are going through the process now and we think that at the end of the day, when it settles, we would have a system that ensures that resources are allocated in the most optimised way. I think it can only be good for the economy.
Overall, what is your assessment of the state of the economy?
It has been a very tough environment for all of us as Nigerians, even for banks. I alluded to that when I said for the first half of the year it was a tough operating environment. But with the kind of initiatives that government has made, we expect that things would begin to ease out. A good example is what we just discussed now on the new forex initiatives from the CBN, the changes that were made on the prices of refined petroleum products, all these would impact the economy going forward. The passing of the national budget which we know from the discipline that we have seen in the current administration would be dutifully executed. That was why the minister of finance said recently that the government has what it takes to be able to deal with the current challenges.
FirstBank has huge exposure to Aiteo Energy, given the prolonged drop in oil prices. How do you intend to recoup your money?
What I would say is: the worst is over. Again I mentioned in the earlier part of the interview that oil price went as low as $27 per barrel. Over the last two to three months, the price of crude oil has stabilised and has been hovering around
$45 to $50. So, really we are much better today as a country and economy than we were four to five months ago. That can only be better for us as FirstBank.
Despite the strong belief that the agric sector can be the game changer for our economy, a lot of banks still find it difficult to finance the sector. Presently lending to this sector is at between two and three per cent. So, why do banks find it hard to lend to this sector?
What I would say is that at the bankers’ committee, we have actually focused a lot on this sector in recent times. In fact, we have a sub-committee of the bankers’ committee that is working on this. The challenge is how you de-risk the agric sector to the extent that it can attract the right level of financing. Again, if you go back four to five years ago and if you look at where we are today, we have improved but I would be the first to admit that there is still significant room for improvement. There are a lot of initiatives that are working like the growers’ initiative is working. The CBN has also put aside on-lending facility to the agric sector. All these are geared towards ensuring that banks are in a position and are willing to provide financing to the agric sector. I agree absolutely the agric sector is the most crucial sector of the economy today. As a country, we must be able to feed ourselves and when you are able to feed your population, and then half of the problem is solved. It is not just about feeding, it is also about employment. The agric sector still employs the largest number of people and when we get it right as a country, the value creation from processing, from exporting could be very significant. Like I said, the bankers’ committee has a team that is looking at this and what I see is year-in, year-out, we would keep on improving on prior performance.
What is FirstBank commitment to the sector?
We are very much committed to the agric sector. This is one of the oldest lenders to agric sector. In my very short stay in office over the last six to seven months, I must have visited at least three key customers who are into commercial agric. Again, it underscores the importance we attach to agric sector. Like I said, I think for all of us as Nigerians, agric is very central to what we need to achieve.
What about your role in financing SMEs, can we know how much you have given to operators of small businesses in the past one year?
I don’t have the numbers, but what I can tell you is that FirstBank is the biggest lender to SME sector. In fact, we have a programme that we sponsor at the Lagos Business School where we provide technical support and skills upgrade to SMEs. If you
Today, we are the biggest retail bank of all the commercial banks in Nigeria. As part of our strategic plan, retail banking would continue to be a key and significant part of our business. I mentioned the fact that today, we have the largest number of branches and that supports our retail strategy. We have the largest number of ATMs currently being deployed. Currently, we have about 2,600 ATMS and we are in the process of increasing that to about 3,000. Today we have more than 10 million customers that we provide different services to. Again for us, we are deepening our share of the retail banking market. Our focus is on migrating more and more of our customers to our digital banking platform
go to our website, we have what we call SME tool kit, which is essentially what SMEs can access and it empowers them on how to run their businesses. We have won several awards as far as SME support is concerned. If you remember, I earlier said we are active across the entire spectrum; I specifically highlighted the fact that we were present in the SME sector. Again, I kept on highlighting the fact that for First Bank, it is not only about profitability, it is about impacting the environment. I have visited all the geo-political zones in the country since my assumption of office. And on several occasions, I have seen successful business men walk up to me and say thank you FirstBank for believing in me. When I started this business, I went to XYZ bank nobody believed in me, but FirstBank did. I wouldn’t want to mention because some of them are very big businesses today. What that tells you is the strength of how interconnected FirstBank is to the entire economy of Nigeria. This is an amazing brand that has endured and it has endured basically on the back of financing the sectors of the economy that are important for growth not just for the profitability of the bank. I was at a dinner sometime in the first quarter, and one of the very senior citizens, when he heard I was at that particular event, he highlighted how much FirstBank has contributed to the growth of Nigeria. And he went on and highlighted a number of businesses that he was aware that without FirstBank they wouldn’t have been where they are today. Remember when we also spoke about oil and gas, I said our focus in supporting Nigerians that acquired those oil and gas businesses and OML from international companies, was that we were interested in creating a new generation of Nigerian entrepreneurs who are able to help the country with growth. For us at FirstBank, those are the things that are part of the DNA of the institution.
The tenure of Oba Otudeko as Chairman of FBN holdings is expected to end this year, and I’m sure he is most likely to step down, how true is that?
I am not aware that his tenure would end this year and to the best of my knowledge, it is not ending this year. He is the chairman of FBN Holdings Plc and FBN Holdings Plc started off in 2012 and CBN has a 10-year tenure.
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THE BANKING SERIES
‘ACQUIRING ANOTHER BANK NOW WILL BE A DISTRACTION FOR US’
Cont’d from Pg. 23
To what extent has implementation of the Treasury Single Account policy affected FirstBank and how is the bank coping with the withdrawal of public funds from the system?
I would take you back to my opening remarks where I said this bank is active across the entire business segments. Public sector, which is where we deal with government, was a very important part of our business. In all honesty, the TSA affected us but what we have done strategically is that we have re-allocated resources. The volume or the amount of resources we previously dedicated to that particular segment of our business has basically been re-allocated to other segments of our business where we are seeing more opportunities in today’s world. Basically, it is just a decision of resource allocation for us.
Can you tell us to what extent you are exposed to non-performing loans (NPL) in the second quarter results? It is about 20 per cent.
Is that not on the high side?
It is a bit high, but remember where we are coming from. We said we lent more to the oil and gas sector and as the oil and gas sector went down, we had to take impairments. So, what we are going through now is a process of remediation and as we remediate them, we would begin to come out of it.
Recently, there was a court judgement, which made it illegal for power distribution companies and generation companies to implement the new tariff and we know a lot of banks are exposed to the power sector. Would the development not affect your debt recovery drive?
The power sector is a very important sector of the economy. And without the country resolving all the issues around the power sector, our push for economic growth would remain a mirage because you require power to power the economy. It is a sector that is in transition between when it used to be wholly handled by government to now that government is handing over gradually to the private sector. So what we have seen is that given the significance of the sector on the overall health of the economy, government has been heavily involved in resolving all the issues in that sector and I am certain that we would find a win-win situation for everybody. Again, it is in the overall interest of the economy for that sector to do well. For that sector to do well, there must be capital injection either by way of equity or by way of debt. And the only way that would happen is if the bankers or the financers are comfortable they would recoup their money. I am aware that government is fully aware of this and they are doing everything possible to ensure that the power sector remains very viable. At this point in time, I am very confident that we are going to find a win-win situation for all the key stakeholders in that particular sector.
Previous administrations also set targets for the power sector which were never met. Do you have confidence that this administration would deliver on this target?
I am very positive. What I have seen is that this administration has been methodical in the way they have been going about their approach to power sector. Equally very important is that this administration recognises the significance of resolving all the issues relating to the power sector. So I have no doubt in my mind that we would find a win-win situation for the key stakeholders of this sector. Therein lays the opportunity for the economy to grow. Without resolving all those issues, we would not be able to inject the much-needed investments into the power sector. And without those investments in the power sector, we would all continue to use the more inefficient and expensive power generators that we all use today which constitutes drains or wastages within the economy.
Giving the economic situation, has your staff been downsized?
For us at FirstBank, we take decisions
Adeduntan
relating to resource allocation very seriously. For us, remember when you asked a question around TSA I said it is about resource allocation. For executive management, that is probably one of our most important responsibilities – optimal resource allocation. And for us, that is what we do. How do we optimise all the resources available to us at any particular point in time? Resources relating to finances, human capital, landed property, etc.
So there is no lay-off? Or were there pay cuts?
What I am saying is that we would continue to optimise our resources. A number of people are well trained and they have transferable skills and because they have transferable skills, you can find need for them elsewhere. That is why I said it boils down to resource allocation decision at the end of the day. Going back to your non-performing loans, I think at 20 per cent, it is still on the high side considering that we have a regulatory threshold of five per cent. What specific steps are you taking to bring it down? Also, with the prolonged slump in commodity prices across the continent, how profitable are your African subsidiaries? Most of our subsidiaries in other African countries were acquired in 2013, so we basically used that period of 2014-2015 to integrate them fully from the policy process and technology perspective. So today, all our subsidiaries run on Finacle, which is our core banking application. That was what we set out to achieve within the first 18 to 24 month post acquisition. The phase that started in January 2016 is what we call the value realisation phase where we begin to work towards realising what level of returns from those subsidiaries. So we are managing those subsidiaries actively now and given our expectations in the medium to long term, of the kind of value we expect from them, we have now put an executive in charge of what we call our international banking business, which is essentially managing and coordinating all those international subsidiaries. In the fullness of time, we expect that we would see the right level of returns. But it is the very early days now. Anytime you make an investment, there is what we call the gestation period. So we are basically at the gestation period and what we expect to see
is an upward slopping curve which reflects that overtime, that we would be making more money from those subsidiaries. On the NPL ratio, I mentioned it earlier that as the oil and gas industry comes out of its current downturn it would improve. We are working very hard as a management to ensure that we bring that ratio between
I have visited all the geo-political zones in the country since my assumption of office. And on several occasions, I have seen successful business men walk up to me and say thank you FirstBank for believing in me. When I started this business, I went to XYZ bank nobody believed in me, but FirstBank did. I wouldn’t want to mention because some of them are very big businesses today. What that tells you is the strength of how interconnected FirstBank is to the entire economy of Nigeria. This is an amazing brand that has endured and it has endured basically on the back of financing the sectors of the economy that are important for growth not just for the profitability of the bank
a threshold that is acceptable. Like I said, it is a reflection of how integrated we are as a bank to the overall economy of Nigeria. We always lend to the real sector. We set out to ensure that we grow the real sector. Analysts have predicted another round of consolidation of banks, are you interested in acquiring any bank, more especially, Keystone Bank, which is being offered for sale? For us at FirstBank, we are always very strategic in whatever we do. Today from what I see, we have the critical mass. Remember I reeled out the statistics. We have the largest branch network, the largest ATM network, largest customer network and a huge presence outside Nigeria. So the value addition from an acquisition may not be that significant for an entity like FirstBank. Our focus as the new management of FirstBank is how to extract more value from this platform. This is a very formidable platform. So for us, it is about extracting more value for all our key stakeholders, shareholders, staff, and government (by way of tax). It is about deepening financial services that we render, it is about changing the face of what we do. So those are the goals we have set for ourselves. So, acquisition at this point in time would be more of a distraction. We already run the largest bank. So for us, our task in the short term is well defined. Make this national icon to run more efficiently, strengthen controls, bring in more customers. We have a target to double our customer base. We currently have over 10 million and in the medium term, we want to double our customer base. For us, those tasks are crucial to what we are doing and we already have the platform. So an acquisition at this point would be a distraction. But for other entities that do not have the economies of scale, acquisition could be a growth strategy for them.
Finally, what targets have you set for yourself in FirstBank?
My goal is to leave a legacy at FirstBank. I want to make this bank not to be the largest bank in Nigeria, but the most profitable bank. I want this bank to be the most respected brand in the market. I also want this bank to be a household name across the continent and to be one of the clear leaders across the continent. For me, those are my goals.
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BUSINESS/MONEY
Surprise, Cautious Optimism Greet July MPC Decision
The recent decision of the monetary policy committee of the Central Bank of Nigeria to hike MPR rate by 200 basis points to 14 per cent has attracted the attention of economic analysts and real sector operators, who have expressed divergent opinions, report Kunle Aderinokun, James Emejo and Olaseni Durojaiye
R
ising from its two-day meeting last Tuesday, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) took decisions to respond to some of the major factors affecting the economy. Of all the major factors, unabatedly rising inflation is a worrisome factor militating against the economy. As part of its core mandates, the CBN is expected to ensure monetary and price stability and in so doing, it must put inflation under control. And that was why when its MPC was confronted with two policy options to take- to restart growth or fighting inflation- it resolved to tame inflation to defend the naira. The committee was particularly concerned that headline inflation spiked significantly in June 2016, approaching twice the size of the upper limit of the policy reference band. The committee noted that inflation had risen significantly, eroding real purchasing power of fixed income earners and dragging growth. The Consumer Price Index (CPI) which measures inflation rose by 0.9 per cent to 11-year high of 16.48 per cent in June compared to 15.58 per cent in May. This was after it had jumped to a nearly six-year high of 13.72 per cent in April from 12.77 per cent in March. According to the National Bureau of Statistics (NBS), energy prices, imported items and related products are persistent drivers of the Core sub-index while the highest price increases were noticed in the electricity, liquid fuel (kerosene), furniture and furnishings, passenger transport by road and fuel and lubricants for personal transport equipment. As such the CBN’s MPC at the conclusion of its July meeting last Tuesday, raised the MPR, the benchmark interest rate by 200 basis points to 14 per cent from 12 per cent. The committee, however, left the cash reserve ratio and liquidity ratio unchanged at 22.50 per and 30 per cent respectively as well as retained the Asymmetric Window at +200 and -500 basis points around the MPR. Addressing journalists at the end of the two-day meeting of the Monetary Policy Committee in Abuja, CBN Governor, Godwin Emefiele, explained that five members voted to raise the MPR while three others voted to retain the rate at 12 per cent. Only eight members of the committee were present at the meeting. According to him, the committee was torn between supporting growth and fighting inflation but eventually settled for the defence of the naira, partly because the apex bank “lacked the instruments required to directly jumpstart growth, and being mindful not to calibrate its instruments in such a manner as to undermine its primary mandate and financial system stability, in assessment of the relevant issues.” He added that the high inflationary trend which has culminated into negative real interest rates in the economy and discouraged savings was also a major concern in arriving at the conclusion to further tighten MPR. The MPR is the rate at which the apex bank lends to commercial banks and usually determines the cost of funds in the banking system. Analysts React However, with inflation currently at 16.48 per cent amid rising cost of funds to the real sector and its attendant unemployment challenges and negative foreign trade balances as well as the stark reality of an impending recession, most economic analysts and real sectors, who spoke with THISDAY expressed shock at the resolve of
L-R: Emefiele, Deputy Governor, Economic Policy, CBN, Sarah Alade, and Deputy Governor Corporate Services, Suleiman Barau, at a recent MPC meeting in Abuja the MPC to further raise interest rate. Nevertheless, a few of the analysts are in support of the MPC decision. Economist and ex-banker, Dr. Chijioke Ekechukwu, who is Managing Director, Bristol Investment Limited, said the increase in rate will only benefit the government and further increase the cost of doing business. He said: “The Monetary Policy Rate(MPR) is the rate at which CBN lends to commercial banks. This increase of MPR to 14 per cent from 12 per cent by 200 basis points was expected of the Monetary Policy Committee of CBN against the backdrop of the increase in inflation rate to 16.5 per cent. The effect of this increase is that banks, whether commercial, merchant, Mortgage or Micro Finance Banks, will jerk up their lending rates to their own customers for both existing and new credit facilities. “This will further increase the cost of doing business and a resultant effect in the high prices of goods and services. The benefit of the increase in MPR is only to the government whose lending rates to banks should not be expected to be far lower than inflation rate. To the average Nigerian however, the increase of MPR means higher prices of goods and services. This will deepen the inflationary trends.” Also, economist and former Managing Director, Unity Bank, Muhammed Rislanudenn, said tightening could lengthen the contraction of the economy amid the 2016 budget implementation woes. According to him the renowned economist: “MPC argued that they have two options, that of trading off growth to address inflation and negative interest rate thereby encouraging foreign investors or leaving rates on hold while waiting for fiscal authorities to implement 2016 capital
budget and help stimulate the economy by jump starting it towards growth and away from recession. They opted for the former because as they argued they have no control on the fiscal side.” He said: “I do not think further tightening will do any magic as cost of borrowing will go higher, negative interest rate will remain given inflation rate of 16.5 per cent and new MPR of 14 per cent and contraction might remain for longer period given government’s difficulty in implementing 2016 capital budget due to erosion in projected income as well as delays in securing loans needed to deal with budget deficit. To mitigate such challenge, CBN can come out with more intervention funds targeted at specific growth and employment enhancing sectors at single digit interest rate.” In the same vein, Associate Professor of Finance and Head, Banking and Finance Department, Nasarawa State University, Keffi, Uche Uwaleke, said the hike in MPR offers little prospect for recovery. He said: “In my humble view, the outcome of the MPC meeting inspires little prospects for early economic recovery. I had expected some easing of monetary policy or at the worst an unchanged MPR in view of the slump in GDP. With the benchmark rate jumping from 12 to 14 per cent, the CBN has clearly chosen to focus on inflation rather than growth. Unfortunately, this approach will most likely miss the target. “The banks will be the worst hit as the increase in MPR will automatically lead to another round of credit squeeze within the system. For a government that is desirous of encouraging the growth of SMEs, I wonder how this move would help an economy that is technically in recession. “The decision to increase the MPR will also jerk up the cost of servicing the country’s domestic
debt as bond yields go up. The stock market will be impacted negatively as equities become less attractive to portfolio managers as an asset class due to increase in bond yields and fall in bond prices. In the coming days and weeks, without a counter fiscal stimulus, I expect to see a bearish stock market.” Also, registering his disappointment of the increase in interest rate at this point in time, Executive Director, Corporate Finance, BGL Capital Limited, Mr. Femi Ademola, said the rate hike could only serve to further fuel inflation and cause declines in production due to higher cost of operation. He said: “I am still at a loss of words to express my shock at the action of the MPC. My expectation was that in order to give the economy a breather, the MPC would go for monetary easing. However, it appears that they are focused on the exchange rate volatility with the mistaken believe that it is due to liquidity surfeit. I believe it is due to dearth of local substitutes for imported goods. And if there were excess liquidity in the banking sector, a targeted withdrawal through OMO would have been a better option at this time. “By this action, the real sector will continue to suffer credit crunch due to high cost and the economy may further contract. On the other side, yields on fixed income instrument would increase providing opportunity for investment in our local treasuries and bonds. However, I think existing investor will suffer losses by marking to the market but new cash will get a good bargain. I am also not sure if this will attract foreign investors considering that the foreign exchange market has not been stabilised yet. ”Finally, if the target of this action is to check inflation, I think it may work to other way, further increasing inflation and production declines further
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
BUSINESS/MONEY Surprise, Cautious Optimism Greet July MPC Decision due to high cost of operation.” Similarly, analysts at Time Economics stated that the decision was against their expectation. Notwithstanding, they posited that, “On the bright side, we are of the view that tightening the MPR which will reduce negative real interest rate will come as good news particularly for foreign portfolio inflows. It will also help to stabilize the Naira in the currency markets which is one of the core mandates of the CBN.” The analysts, however, added that, “ the latest move is very unlikely to curtail today’s inflationary pressures since the factors driving the current increase in general price levels are largely cost-shocks and not demand related. “Secondly, given the nature of Nigeria’s financial system, interest rates generally paid on savings by commercial banks in Nigeria are usually not dependent on the benchmark Monetary Policy Rate. Therefore we think that savings account holders who have seen the real returns on their savings wiped out by rising inflation are unlikely to be beneficiaries. “Furthermore on the downside, we also think the move could not only help to exacerbate the current difficult operating environment for firms but would also lead to an increase in cost of funds for net borrowers and thus dampen corporate investments.” The Chief Executive Officer, Global Analytics Derivatives Consulting, Tope Fasua, said he aligned with most analysts that “the decision is a bit shocking.” According to him, “Increasing MPR at this point will increase the pains of businesses especially because the banks are known to rapidly increase lending rates while deposit rates lag. The CBN is aware of this. The flip side is whether this will have a salutary impact on bringing inflation down. Again, that is doubtful. Nigeria’s leaping inflation is cost-push, not demand-pull. Businesses are passing on the higher cost of dollars, of inputs and everything else, to the consumer where they can. Nigerians are going through dire straits. “I think the strategy is risky, but not entirely a CBN matter. They are caught between the rock and a hard place. This is the culmination of procrastination on the fiscal side, and a disheartening dissonance in government that has led to business closures and the rest in the last 14 months.” While the representative of the real sector stated that the decision “will not help the economy” a research analyst with a Lagos based economic advocacy group added that “the decision portends a lose-lose situation.” While speaking with THISDAY, President of the Manufacturers Association of Nigeria (MAN), Frank Jacobs, explained that the new hike would further deny the real sector access to funds, lead to more companies closing shop or reducing capacity utilization as well as hurt the economy. Jacobs opined that hiking MPR rate at a time when the real sector was calling for a lower lending rate for the sector through the creation of a special window in order that the sector can be competitive in the international market would jeopadise the attempt to diversify the economy. “I believe an increase in lending rate will affect production capacity of members of the Manufacturers Association of Nigeria (MAN); it might even lead to some of the companies cutting down on capacity utilisation. Already, we’re canvassing the Federal Government to come up with a special window for the manufacturing sector to access fund at a lower interest rate of between three to five per cent as it obtains in other climes; the increase now means the whole idea to diversify the economy is going to be a mirage because how will people get the money to set up industries, or expand their current industry in order to diversify the economy. The policy will not help the economy. It will not help job creation and it will not help wealth creation; it’s not the best,” he added. In an interpretative note obtained by THISDAY, analysts at Meristem Securities stated that it anticipated a northward trend in yields in the medium term as assets are re-priced and highlighted the potentially negative impact of the more attractive yield environment on the equities market. The note from Meristem Securities further stated that “banks will be boosted by Non-Funded Income Generation. The MPC maintained the status quo on the cash reserve and liquidity ratios, meaning that from a regulatory standpoint, this policy pronouncement will be positive for banks (specifically for liquid banks).
Cont’d from Pg. 25
Finance Minister, Kemi Adeosun
“We expect that liquid banks will boost gross earnings through non-funded income generation by investing in fixed income assets as market yields are affected upwards by the hike in the Monetary Policy Rate (MPR). Fixed income instruments become more attractive We note the current average yields across the Nigerian Treasury bills and bonds, which pegs at 15.42 per cent and 15.84 per cent accordingly, while also considering the stop rates at the last Treasury bills auction held Wednesday, 20th July of 14.14 per cent, 15.48 per cent and 16.48 per cent for the 91-day, 182-day and 364-day instruments accordingly,” it added. However, Oyelere kicked against the decision of the MPC tame inflation as against reflating the economy and argued that doing so was wrong and portend a “lose –lose” situation for the economy. “The decision to hike the MPR clearly was based on taming inflation. We can’t opt for inflation targeting at a time the economy is contracting. I think members of the committee didn’t prioritise well. What need to be targeting now is reducing cost of lending and not increasing it. Secondly, the inflation that we’re trying to manage is cost induced and which doesn’t necessarily imply that there is excess money in circulation. This will not restrict the economy; it will rather create arbitrage around other financial instruments,” he argued. Oyelere and analysts at Meristem Securities aligned with Jacobs on the implication to the real sector . On his part, Oyelere insisted that “The implication is that the real sector cannot access fund at a reasonable rate. When you hike benchmark lending rate, prime lending rate and other lending rates will go up. If this happens the economy may further contract; if we’re not careful we will keep having increasing unemployment.” As Oyelere posited, analysts at Meristem Securities stated that, “the hike in benchmark interest rate will negatively impact the cost of borrowing to the real sector as banks re-price current interest rates on existing loans. We note that this will particularly affect the small-medium enterprises, hindering expansion plans and thus necessitating the need to pass-on the higher operating costs to consumers.” However, Managing Director, Chief Economist, Africa, Global Research, Standard Chartered Bank, Razia Khan, noted that the MPC decision was in line with the bank’s expectation. Pointing out that, “given the cost-push nature
President, Manufacturers Association of Nigeria (MAN) Dr. Frank Jacobs
of inflation in Nigeria, which largely stems from the shortage of FX, we believe that this was the right thing to have done,” she enthused that, “today’s monetary policy decision demonstrates a commitment to FX liberalisation, which alone will undo some of the bottlenecks that have contributed to inflation.” Khan said, “while the CBN framed its internal debate as choosing between growth and inflation, we believe there is no meaningful long-term trade off.” “ Establishing more credible policy and attracting greater inflows is about as pro-growth as policy can be, given the challenges currently facing
In all, we think this was a good outcome to the MPC meeting. As Nigeria embarks upon the path of reform…., all with a view to easing the economy’s transition to lower oil prices, and creating the foundation for more sound long-term growth, we think that today’s MPC decision represented an important initial step in the right direction. The decision to raise the monetary policy rate despite growth concerns will give investors a clear signal on the authorities’ intent to sustain FX reforms. This should be well-received
the Nigerian economy. Today’s tightening was an important step in re-establishing the credibility of monetary policy in Nigeria, and should allow for a gradual recovery in FX inflows. “The asymmetric band around the MPC was not altered from its current +200bps/-500bps, disappointing our expectations of a significantly higher floor to rates. However, with the MPR tightening, the rate on the CBN’s standing deposit facility does move higher, to 9 per cent from a previous 7 per cent. This is still meaningful.” She added: “The CRR was kept unchanged at 22.5%. Given weak oil prices and output, we do not see excessive liquidity growth in the Nigerian economy. There’s no immediate rationale for a much higher Cash Reserve Ratio, not least because a more market-determined, inevitably higher USD- NGN rate will keep the spotlight on bank NPLs and capital adequacy ratios. Any further rise in the CRR would only have added pressure to the banking system, with little effect on alleviating the FX shortage.” “In all, we think this was a good outcome to the MPC meeting. As Nigeria embarks upon the path of reform (FX liberalisation, fuel price deregulation, transparency initiatives, efforts to boost revenue mobilisation, power sector reforms), all with a view to easing the economy’s transition to lower oil prices, and creating the foundation for more sound long-term growth, we think that today’s MPC decision represented an important initial step in the right direction. The decision to raise the monetary policy rate despite growth concerns will give investors a clear signal on the authorities’ intent to sustain FX reforms. This should be well-received.,” she concluded. Aligning with Khan, Macroeconomic and Fixed Income Research Analyst at FBNQuest, Chinwe Egwim, was hopeful that “this hike will not have an acute adverse effect on banks’ lending rates to the real economy, ” The committee, according to her, expressed satisfaction in improved credit lending by banks to the private sector. Besides, Egwim added: “It seems the committee has handed over the responsibility of jumpstarting the economy to the fiscal arm as it tilted towards allowing fiscal policy some space to stimulate output. “The hike in MPR by 200basis points to 14 per cent indicates that inflationary pressures were of great concern. Given the current headline inflation figure, real yields across the curve are negative (on an average of -0.7).”
T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
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BUSINESS/ENERGY
How Production Disruptions, Increasing Demands Shape W’Bank Oil Forecast Chineme Okafor writes on how the recent forecast by the World Bank that global oil prices will rise by an additional $2 per barrel may have been shaped by disruption of production facilities in the Niger Delta and the rising demand for the black gold
Oil field workers busy at a rig
N
igeria, no doubt, is a recognised player in the global oil industry such that whatever developments that crop up from her oil fields could, in one way or another, affect the industry. Recently, the World Bank indicated that it was raising its 2016 forecast for crude oil prices to $43 per barrel from $41 per barrel due to supply outages and robust demand in the second quarter of the year under review. The bank in the July edition of its Commodity Markets Outlook published quarterly, and which provides detailed market analysis for major commodity groups, including energy; metals; agriculture; precious metals; and fertilisers, said it expected global oil prices to jump some percentage higher than it is now to close at $43 per barrel before the last quarter of the year, starting from October. According to it, oil prices jumped 37 per cent in the second quarter of 2016 due to disruptions in supply, particularly from wildfires in Canada and sabotage of oil infrastructure in Nigeria. It however explained that despite possible return of shut-in volumes from these disruptions, it anticipates a slight increase in prices as the market oversupply dries up. Though the bank did not state that continued disruptions in Nigeria’s oil fields could be one of the reasons from which the oversupply could be cut, industry watchers however feel that continued hostilities in the Niger Delta could in a way contribute to the bank’s forecast of a price rise.
“We expect slightly higher oil prices for the second half of 2016 as oil market oversupply diminishes,” said John Baffes, Senior Economist and lead author of the Commodities Markets Outlook. “However, inventories remain very large and will take some time to be drawn down,”admitted Baffes. According to a statement announcing the recent forecast of the bank, despite the recovery of oil and many other commodity prices in the second quarter of 2016, most commodity indexes tracked by it are expected to decline this year. It said this trend was due to persistently elevated supplies, and in the case of industrial commodities which include energy; metals; and agricultural raw materials; weak growth prospects in emerging market and developing economies. It, however, noted that most of the declines were projected to be smaller than expected in the April outlook. “Energy prices, which include oil, natural gas and coal, are due to fall 16.4 per cent in 2016, a more gradual decline than the 19.3 per cent drop anticipated in April. Non-energy commodities, such as metals and minerals, agriculture, and fertilizers, are expected to ease 3.7 per cent this year, a more moderate contraction than the 5.1 per cent retrenchment forecast in the previous outlook. “Metals prices are projected to fall 11 per cent in the coming year, a sharper decline than the 8.2 per cent drop forecast in April, reflecting weak demand prospects and new capacity coming on line. Agriculture prices are forecast to fall less than
projected in April as a result of reduced harvests in South America and plateauing demand for biofuels,” said the forecast. The institution said because energy constitutes more than 10 per cent of the cost of agricultural production, movements in energy prices have been a major factor in the path of food prices. According to it, energy prices fell 45 per cent in 2015 and are projected to drop again this year. It said about one-third of the likely 32 per cent drop in prices of grain commodities and soybeans from 2011 through 2016 is due to energy price declines, adding that lower energy prices have also eased pressures to produce biofuels as an alternative energy source. But prices could still end on a low range Despite the bank’s forecasts, oil prices could still end the year lower compared with current levels and considering that the forecast would still be 15 per cent lower from 2015. Even though the bank did not expressly state that prices will rise on the backs of disruptions in Nigeria’s production, the fact that a lasting solution to renewed militancy in the Niger Delta has not been found yet, means that large volumes of output could still be shut-in from time to time, and for as long as possible, creating some level of uncertainty on Nigeria’s crude oil. Industry stakeholders indicate that if such situation continued, and deferred volumes from Nigeria are not quickly picked up by other oil producers to keep the oversupply open, then the World Bank’s forecast could eventually end on its assumptions.
Media reports indicate that already, the Niger Delta is sliding back into turmoil, and with profound implications for Nigeria’s economy. Latest insurgent acts by groups seem to have defied government’s extension of Olive branches to curtail increasing cut in oil production. More views expressed by industry experts showed that whatever happens in Nigeria will definitely play a big role in the global oil prices, given her level amongst oil producing countries. They noted that militants in the Delta have destroyed oil wells and pipelines which could take time to repair, and in that, output from the country could stay low for a while if no ceasefire is achieved between the government and the militants. They likened the potential production drop to what happened in Libya when it went on a civil war in 2013 and stretched the capacity of other oil producers, especially member countries of the Organisation of Petroleum Exporting Countries (OPEC), adding that years later, Libya continues to suffer from daily production outages which the United States Energy Information Administration put at about 1 million barrels. According to them, the country’s oil facilities such as the Forcados and Bonny Terminals as well as Escravos, have all been affected by the renewed militancy, while the military has reportedly continued to bark out threats to crush the militants if they refuse to accept dialogue with the government. These, they said, did not inspire the confidence that Nigeria was on top of the situation, hence, the possibility that it could drive the World Bank’s forecast to reality.
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
NIGERIA’S TOP 50 STOCKS BASED ON MARKET FUNDAMENTALS
AIICO INSURANCE PLC: AIICO reports massive growth in top-line and bottom-line earnings
E
stablished in 1963, AIICO Insurance Plc (AIICO) is one of largest composite insurance companies in Nigeria; offering both life insurance and general insurance businesses.The company is publicly listed on the Nigeria Stock Exchange and currently has 33 business offices spread across Nigeria. In addition to being a foremost life insurer, AIICO is also a major underwriter for general insurance including business and special risks and provides both personal and business insurance products. The types of individual insurance products the company offers are annuities, term life insurance plans, education plans, funeral plans, home plans, legacy assurance plans, mortgage protection plans, motor insurance plans, personal accident plan and travel insurance.The company’s business insurance products include civil construction risk and industry specific products in agriculture, engineering, financial services, legal, logistics, hospitality and entertainment. The Company’s results for the first quarter period ended, March 31st 2016, showed growth in key metrics as premium income rose notably along with underwriting profit. The insurance giant, AIICO Plc’s management paid a total dividend payment of N346.51 million (on the basis of N0.05 per share) for every 50 kobo share for the full year 2015 after a few of non-payment of dividend. SIGNIFICANT INCREASE IN NET PREMIUM INCOME BACKED BY REDUCED REINSURANCE EXPENSES For the first quarter period ended March 31st 2016, AIICO’s result showed an increase of 3.48% in gross premium written to N8.22 billion from N7.94 billion in the corresponding period of 2015.This was followed by a moderate rise of 9.04% in gross premium income to N5.07 billion from N4.65 billion in the corresponding period of 2015. Another reason for the spike in gross premium income was due to a 4.39% decrease in unearned premium. Unearned premiums are proportionate to the unexpired portion of the risk, for which coverage has been sought by the insured party. Thus, it is deemed to have not yet been earned by the insurer. It appears as a liability on the insurer’s balance sheet, as it would have to be paid back upon cancellation of the insurance policy. Also, re-insurance income decline by 24.47% to N859m from N1.14m in March 2015. Owing to the various aforementioned factors, net premium income for the year rose by a notable 19.90% to N4.21 billion in March 2016 from N3.51 billion in corresponding period of 2015.This translates to improved market share despite stiff competition in the insurance sector.
AS ONE OF THE LEADERS IN LIFE INSURANCE BUSINESS IN NIGERIA, AND A REPUTABLE PLAYER IN THE INDUSTRY, AIICO INSURANCE IS WELL POSITIONED TO TAKE ADVANTAGE OF THESE INITIATIVES BY EXPANDING ITS CLIENTELE AND THUS INCREASING PREMIUMS
INCREASE IN UNDERWRITING PROFIT FURTHER IMPACTS PROFITABILITY For the first quarter period ended March 2016, gross claims expenses decreased by 24.23% to N2.34 billion in from N3.09 billion recorded in the corresponding period of 2015. Claims expenses recovered from reinsurers also followed suit with a 123.24% decrease to N130m from N558m during the period under review. However, due to a positive recover of claimed expenses from reinsurers in March 2016, net claim expenses decreased slightly by 2.44% to N2.47 billion in March 2016 from N2.53 billion in the corresponding period of 2015. Moreover, total underwriting expenses decreased moderately by 5.02% to N3.35 billion in March 2016 from N3.52 billion in the corresponding period of 2015. We believe that the company’s management has adopted a more effective risk management practice that is enhancing the reduction of its previously increasing underwriting expenses. Due to decline in various expenses, AIICO Plc recorded an underwriting profit of N1.38 billion in March 2016 from N454m in the corresponding period of 2015; representing a change of 204.38%. Investment income in the year under review, increased by a substantial 43.09% to N1.48 from N1.04 billion in the same period of March of 2015. MASSIVE GROWTH RECORDED IN NET INCOME Owing primarily to the substantial increase in investment income and a moderate
decline in total underwriting expenses, pre-tax income rose massively by 166.77% to N1.26 billion in March 2016 from N473m in March 2015. Net income also followed suit with a 111.60% massive rise to N937m from N443m in the corresponding of first quarter 2015. The increase was recorded despite an extra-ordinary rise in income tax expenses by 974.11% to N325m from N30m in March 2015. ASSET QUALITY IN FIRST QUARTER 2016 AIICO’s total assets grew by 3.04% to N82.56 billion in March 2016 from N80.13 billion in December 2015.The key drivers of the company’s total assets were 89.46% increase in trade receivables to N562m from N297m, 53.75% improvement in cash and cash equivalents to N13 billion from N8.45 billion and a 42.01% rise in deferred acquisition cost to N376m from N265m in the first quarter of the 2016 compared to December 2015 figures. On the other hand, the company’s total liabilities shows a growth of 4.06% to N73.27 billion in the period ended March 2016 from N70.41 billion reported in December 2015. The key drivers of the increase in liabilities were an increase of 57.13% in trade payables to N2.43 billion from N1.55 billion, and a 32.17% rise in CurrentTax Payable to N784m from N593m over the period. Due to a higher rise in total liabilities compared to total assets, the company’s net assets declined by 4.63% to N8.94 billion in March 2016 from N9.37 billion in December 2015. With respect to returns, the company’s return on assets (ROA) rose to 1.14% in March 2016 from 1.49% in December 2015 while return on equity (ROE) followed suit with a rise of 10.49% in March 2016 from 12.76% in December 2015. BUY RECOMMENDATION MAINTAINED The National Insurance Commission (NAICOM) has embarked on a host of reforms to the Nigerian insurance industry including the introduction of risk-based supervision, the migration to the International Financial Reporting Standard from the Nigerian Generally Accepted Accounting Principles, market conduct reforms, and financial inclusion, with the aim of developing the industry and improving the general perception of insurance amongst the populace. We believe that these industry reforms will help in the development of the untapped Nigerian retail insurance market and in turn lead to greater insurance market penetration. As one of the leaders in life insurance business in Nigeria, and a reputable player in the industry, AIICO insurance is well positioned to take advantage of these initiatives by expanding its clientele and
Valuation Metrics 16-Jun-16 Recommendation
BUY
Target Price (N)
0.76
Current Price (N)
0.70
Outstanding Shares (m)
6,930
Market Cap (N'm)
4,851
Rolling EPS (N)
0.24
Rolling PE Ratio
2.87x
Forward EPS (N)
0.26
Forward PE Ratio
2.64x Source: NSE Data, BGL Research
Q1 March 2016 unaudited Results Gross Premium Income (N'm)
8,216
Profit Before Tax (N'm)
1,262
Profit After Tax (N'm)
937
Pre-tax Margin (%)
15.37
Source: Company Report 2016, BGL Research
Full Year 2015 Audited Results Gross Premium Income (N'm)
32,919
Profit Before Tax (N'm)
1,799
Profit After Tax (N'm)
1,195
Pre-tax Margin (%)
5.47
Source: Company Report 2015, BGL Research
Shareholding Information Shareholders
% Holding
DFB Holdings Limited AIICO Bahamas Limited Public float
15.40% 14.73% 69.87%
Outstanding Shares (m)
6,930
Source: Company Report 2015, BGL Research
thus increasing premiums. Furthermore, the improvements on the company’s policy offerings are intended to increase penetration in the Nigerian market, and in turn drive growth in gross premium income. We have valued each unit of AIICO’s stock using the Net Assets Valuation (NAV). Therefore, using an industry average price to book value of 0.73, consisting of peer insurance companies (Continental Reinsurance, Custodian and allied insurance, Mansard Insurance and Wapic Insurance), we arrive at a 6-month target price of N0.76 for each unit of AIICO Plc stock, which represents a 8.57% upside potential and thus maintain a BUY position.
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
NIGERIA’S TOP 50 STOCKS BASED ON MARKET FUNDAMENTALS
CADBURY NIGERIA PLC: Growth in operational efficiency and key performances metrics
C
adburyNigeriaPlc(Cadbury) recentlyreleasedsecondquarter resultfortheperiodended, 31stJune2016;showsasteady performanceinrevenuewhile postingextraordinaryprofitability asitupturnstheprecedingquarter lossindicatingprogresswith management’soperationalefficiency. TheCompanyisamanufacturerandselleroffastmovingconsumergoodsinNigeria.Thecompany’s confectioneryandfooddrinkssegmentproducesand sellsconfectioneryproductsandfooddrinksunder theBournvita,TomTom,Ahomkaginger,Hacks,and theButtermintbrands.Inaddition,CadburyNigeria’s intermediateCocoaproductssegmentproducesand sellscocoapowder,cocoabutter,cocoaliquor,and cocoacake. SLIGHTDECLINEINCADBURY’STOP-LINE EARNINGS Inthefirstquarter,CadburyNigeriaPlc’srevenuegrew by5.79%toN7.12billioninMarch2016fromN6.73 billionreportedforthecorrespondingperiodof2015. However,inthesecondquarterended,31stJune,2016, revenuedeclinedtoN13.92billionfromN14.14billion recordedinthesecondquarterof2015;thisindicatesa milddeclineof1.56%. Thereasonsforthedropinsalesrangesfroma continuingtussleformarketshareduetostiff competitiontolowerdisposableincomeasaresultof thefiscalrevenuechallengesofthegovernmenton thefallincrudeoilprices,othereffectsofachanging andunpredictablemacro-economicterraininthe countryduringthequarterpasttwelvemonths.Many stategovernmentsareunabletopaystaffsalaryand manyprojectsarestalledwithimplicationsfordiverse sectors’revenueandhouseholdincomeinthehalfyear2016.TheNigerianeconomydeclinedby4.35% whileunemploymentincreasedby19.1%onaquarter onquarterbasisinthefirstquarterof2016,according totheNationalBureauofStatistics(NBS). Cadbury’schallengingmarketspaceisfurther highlightedbyasizableandgrowinginventory displayedinitsbookatitrosefromN1.94billion recordedasatDecembertoN2.19billionand N3.15billionasatthefirstquarterandsecond quarterof2016;therebyindicatingaquarteron quarterpercentagechangeof13.12%and43.96% respectively. Inmannerthatsuggestsnotableproduction efficiency,costofsalesdecreasedinthefirstquarter by5.94%toN4.74billioninMarch2016fromafirst quarter2015figureofN5.04billion;andadecrease of1.47%toN9.87billionfromN10.01billioninMarch 2015. Thedecreasewasdespiteincreaseinthecostof rawmaterialsusedduringproductionandpackaging ofitsproductsandforeignexchangedifferentials. Expectedly,duetothedecreaseincostofsales,gross profitsoarsby40.74%toN2.38billioninMarch2016 fromN.69billioninthesameperiodof2015.However, inJune2016grossprofitrecordedaslightdropof 1.79%toN4.05billionfromN4.12billionreportedin June2015.
COSTREDUCTIONAND OTHERINCOMEIMPACTS OPERATINGPROFIT Cadbury’sreleasedfinancialstatementforfirst andsecondquarter2016indicatesmanagement’s
THE PERFORMANCE OF CADBURY NIGERIA PLC IN THE FIRST AND SECOND QUARTERS OF 2016 DESPITE A HARSH BUSINESS ENVIRONMENT WHICH IMPACTED REVENUE AND EARNINGS NEGATIVELY HAS BEEN IMPRESSIVE COMPARED TO THE PRECEDING PERIODS IN 2015. TURNOVER ROSE IN THE FIRST QUARTER YEAR ON YEAR AND PROFITABILITY DID A COMEBACK TO POSITIVE FIGURES. THE MANAGEMENT HOWEVER STRATEGIES AND PLAN TO STAY AHEAD OF COMPETITION MUST WHILE IT MAINTAINS THE REDUCTION OF OPERATING
efficiencyinhandlingitsoperatingexpenseswhich significantlyimpactsprofitability.Totaloperating expensesdecreasedbyanotablefigureof13.98% and11.10%inMarchandJune2016respectively. Highlightsofthedecreaseinthesecondquarter ended,June2016indicatesthatdistributionexpenses decreasedmoderatelyby6.82%toN2.90billionfrom N3.11billioninMarch2015;whileasubstantialdecline of21.07%wasreportedinadministrativeexpensesto N1.06billionfromaJune2015figureofN1.34billion. Furthermore,profitabilitywasboostedbyan extraordinaryincreaseof204.05%recordedinother incomeinthesecondquarterwhichrosetoN40m fromN13minsecondquarter2015. Hence,operating profitexpectedlyincreasedbyamassivefigureof 291.50%inthefirstquarter,March2016toN639m fromalossofN3334mrecordedinMarch2015; whileitincreasedbyasubstantial142.19%insecond quarter,June2016toN135mfromalossofN315m recordedinJune2015. PROFITABILITYGREWFURTHERONTHEBACK
OFINCREASEDFINANCEINCOME Besidesincreaseinotherincomeandreduced operatingexpenseswhichsignificantlyimpacted profitability,higherfinanceincomeof31.01%further enhanceprofitbeforetax.Financeincomeincreased toN84mfromN64minJune2015.Hence,profit beforetaxincreasedbyanextraordinaryfigureof 186.31%toN216masitupturnthelossbeforetaxof N251mrecordedintheprecedingperiod. Similarly,net financeincomeroseby158.69%toN147minMarch 2016fromN251mlossreportedinMarch2015.Since theCompanyrecordedaprofitinpre-taxearningsit incometaxwasN69mcomparedtoanon-payment oftaxintheprecedingperiodduetotheloss. NOTABLEEXPANSION INTOTAL ASSETS AND OTHERKEYPERFORMANCE RATIO Asathalf-yearended,June2016,totalassetsgrewby anoteworthyfigureof6.05%toN30.14billionfrom N28.42billionrecordedasatDecember2015. The reasonsfortheimprovementinassetsizeinthelast sixmonthscanbetracedtoanextraordinary200.11% increaseinprepaymentstoN703mfromN234mas atDecember2015andasignificantriseof62.85%in inventorytoN3.15billionfromN1.94billionrecordedin December2015;plus15.55%riseintradesandother receivables. TotalliabilitiesasatJune2016standsatN17.70billion, representinganincrementof9.74%and16.68% whencomparedtoJune2015figureofN16.13billion. Theprimarycausesoftheriseinthelastsixmonthsis fromanotableincreaseof13.78%intradeandother payablestoN12.63billionfromN11.10billionrecorded asatDecember2015,andanincreaseof10.09%in employeebenefitstoN4.55billionfromN4.13billion overthesameperiod. Furtheranalysisindicatesthatnetincomemargin forthefirstquarterendedstoodat9.45%and 1.06%asatthefirstquarterendedandhalf-year 2016respectively.Also,thebalancesheetliquidity ratiostandsat1.39%forthequickratioand1.16for thecurrentratiointhefirstquarter2016;itstoodat 1.37%and1.16respectivelyinthehalf-year2016.The Company’sReturnonAverageEquity(ROAE)stoodat 1.19%asatJune2016whileReturnonAverageAssets (ROAA)is0.50%. BUYRECOMMENDATIONAS IMPRESSIVE PERFORMANCECONTINUES TheperformanceofCadburyNigeriaPlcinthefirst andsecondquartersof2016despiteaharshbusiness environmentwhichimpactedrevenueandearnings negativelyhasbeenimpressivecomparedtothe precedingperiodsin2015.Turnoverroseinthefirst quarteryearonyearandprofitabilitydidacomeback topositivefigures.Themanagementhowever strategiesandplantostayaheadofcompetitionmust whileitmaintainsthereductionofoperating. Despite,atoughandchallenginghalf-yearformost consumergoodscompaniesasithasbeenbeset bymacro-economicheadwindswhichincludes foreignexchangechallenges,dynamicpoliciesand regulations,highinflationwhichisnottriggeredby increasedmoneysupplyandothers;asidetheusual operatingchallengessuchas:thecontinuedpoor stateoftransportinfrastructure,insecurity,high inputcostsandunreliablepowersupply.Thisisin additiontothecontractioninhouseholdconsumption expenditureduringtheperiodunderreviewasaresult
Valuation Metrics 29-July-16 RATING
BUY
Target Price (N)
26.93
Current Price (N)
15.02
Market Cap (N'm)
28,210.60
Outstanding Shares (m)
1,878.20
Rolling EPS (N)
0.83
Rolling PE Ratio
18.19x
Forward EPS (N)
0.84
Forward PE Ratio
17.97x Source: NSE Data, BGL Research
Q2 March 2016 Unaudited Results Gross Earnings (N'm)
13,917
Profit Before Tax (N'm)
216
Profit After Tax (N'm)
147
Pre-tax Margin (%)
1.55
Source: Company Report 2015, BGL Research
Q1 March 2016 Unaudited Results Gross Earnings (N'm)
7,121
Profit Before Tax (N'm)
694
Profit After Tax (N'm)
673
Pre-tax Margin (%)
9.75
Source: Company Report 2016, BGL Research
FYE December 2015 Audited Results Gross Earnings (N'm)
27,825
Profit Before Tax (N'm)
1,577
Profit After Tax (N'm)
1,153
Pre-tax Margin (%)
5.67
Source: Company Report 2015, BGL Research
Shareholding Information Shareholders
% Holding
Stanbic Nominees
14.79%
Blakeney GP
6.08%
Public Float Outstanding Shares (m)
79.13% 28,927.97 Source: BGL Research
oftherestrictiveeconomicactivitiesinthecountry. Consideringinourexpectationsforthecurrent financialyearwithrespecttointenserivalryinthe sectorandsufficientevidenceofthecompany’s capacitytocontrolcosts,wehavevaluedeachunit ofCadburyNigeriaPlc’sshareusingtheNetAsset Valuation(NAV)Methodandthepricetoearnings multiples(PE).Thereforeusinganindustrypriceto bookvalueof10.00(PB/V)madeofotherFMCGfirms operatingwithinthesamesector,wearriveatatarget priceofN26.93pershare.Sincethisrepresentsa significantincreaseof179.28%onthecurrentstock price.WethereforeplaceaBUYrecommendationon thesharesofCadburyNigeriaPlc.
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
BUSINESS/PERSPECTIVE/MEDIA
Exploring Investment Opportunities in the Power Sector Uche Aneke
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et me begin this piece by recalling that government ceased to be the sole owner of all power assets in Nigeria following the privatization of the power sector in 2013, in line with the implementation of the Electricity Power Sector Reform Act of 2005. With privatization, private companies took over the responsibility of power generation and distribution. Today, six generation companies (GenCos) are responsible for power generation while eleven distribution companies (DisCos) are now responsible for bringing power to people’s homes and industries. The only entity government kept is the Transmission Company of Nigeria (TCN) which is solely responsible for transporting all the power generated via the national grid. What this means is that government is now only a regulator through the National Electricity Regulatory Commission (NERC) which performs similar functions as the National Communications Commission which regulates telecommunications companies. This transition came with new challenges of adaptation and responsibilities on the part of both the Nigerian public and the new investors in the power sector. Today, the private companies are making efforts to step into the shoes of the government in their new tasks of generating and distributing power supply. Unfortunately, some Nigerians still look up to the government as if it still has the responsibility for generating and distributing electricity. At the moment, some are still sending proposals to government to supply electricity accessories. Reacting recently to this tendecy, the Minister of Power Works and Housing , Mr. Babatunde Raji Fashola , SAN said that such proposals should be properly directed to the GenCos and DisCos and not to the government. The Minister continued: “What government does now through TCN is building transmission lines. For those who want to generate
Fashola
power, their proposal and license applications should be directed to NERC. We are now just supervising the architecture of power”. Beyond these issues, the power sector privatization came with enormous investment potentials and investment friendly initiatives that allow investors to own 100% of investment in the sector. It also protects direct foreign investments as well as ensures repatriation of profits from the investments. Apart from being one of the highest returns on investment (ROI), it has generous tax incentives and a huge local market. Recently, in a reaction to one of my articles on the power sector published in a national newspaper, an independent market and social researcher, from the Pan Atlantic University asked if I thought an investor who wants to partake in the metering master plan should undertake the venture now or wait to see where the industry will swing to. The answer is an emphatic yes, and the time to
invest in the metering master plan is now. Nigeria has a population of about 180 million people, while all the distribution companies combined have just about 6 million consumers in their database. The implication of this is that there are significant numbers of people who are using electricity that is not measured and that is not metered. It also shows that out of the 6 million consumers on the data base that were meant to be metered by the DisCos, there is still a huge gap of close to 50%, that need to be metered; hence the need for investment in this area which has its immense business benefits and potentials for growth. Another potential area of investment is in the development of new dams and management of existing dams as well as small hydro power schemes for power generation. This is timely in view of government’s new thinking of diversifying and exploiting various sources of energy apart from gas fired and big hydro plants. This has become more urgent in the face of continuous vandalism of gas pipelines and power infrastructures across the country. Currently, the Ministry of Water Resources in partnership with the Ministry of Power has set up a steering committee on how well the Ministry can concession the small hydro power schemes for adequate power generation. The committee is expected to come up with regulations and information that would attract would- be investors in the sector. Some already identified projects include the 30 MW Gurara1 hydropower plant in Kaduna, 10MW Tiga dam hydro power plant in Kano, 10MW Oyan dam hydro power plant in Ogun, 8MW Challawa dam hydro power plant in Kano and 6MW Ikere dam hydro power plant in Oyo State. As part of the diversification efforts by the government towards alternative power generation, a new energy mix which encourages construction of solar farms, coal fired plants, renewable resources and investment in gas/gas pipeline infrastructures, is being pursued. This is another attractive area to invest in the power sector. Already, government has approved 14 different solar projects across the country. It has also mapped out
an energy production plan which encourages the siting of power production facilities close to the source of power fuel. This makes it easier for investors to know where to go for a specific investment in the new energy mix. For solar production, Jigawa and Kano states have been identified as the most prolific area of the North. North Central has also been identified as the most prolific area for coal production. In Niger state, the energy mix will be a combination of solar, hydro and coal. For the South South and South West, it will largely be gas. In the South East, it will be a combination of gas and coal. Justifying this new initiative, the Minister of Power said that the move was to reduce the risk of over reliance on major hydro power generating systems and gas. He continued “We are working hard to stimulate the use of solar and we are accelerating plans to complete Zungeru hydro power plant, the Kashimbilla hydro plants, the Gurara hydro power plant and conclude the procurement plan to start the construction of the Mambilla hydro plant”. Potential Investors can also key into the investment potentials in the power sector by buying equities in some of the existing DisCos and GenCos as well as engaging in the supply of electricity accessories. There is no doubt that investment in this area is viable and profitable. There are still questions emanating from some quarters as to why President Mohammed Buhari’s Administration has not reversed the privatization of the national assets by his predecessor; arguing that the privatized sector has not performed better than when it was government controlled. However, in spite of the challenges being encountered in the Nigerian Electricity Supply Industry to date, the government’s stand is not only right but courageous and commendable. Without doubt, there are a lot of business opportunities in the Nigerian privatized power sector, which investors can take advantage of to improve their lives and contribute positively to the growth of national economy.
Uche Aneke is the General Manager Public Affair Nigerian Electricity Management Services Agency (Ucheaneke5@gmail.com)
Bringing Informal Services Closer to the People
Olaseni Durojaiye
I
n response to the need to fill a niche, a new online platform, Oniseowo. com, has launched with a promise to connect operators in the informal sector with people that require their services, among whom are the busy executives who live in major urban centres. A product of Havillah Tents, the platform is described as Nigeria’s online business directory of artisans, tradesmen, craftsmen and informal sector businesses. Its promoters stated that it will operate as an electronic yellow page even as it offers appreciable measure of safety and convenience to patrons and service providers alike. The launch of oniseowo.com align with the call by observers who believe that the increasing internet penetration rate in the country, put at 68 million, has opened up more opportunities in the digital space beyond just the social media or deploying it for social networking, arguing that the use of the digital media should increasingly include business and commercial endeavours. Besides, the comfort and ease that online shopping provide, especially among the youth market and business executives with very busy schedules is believed to serve as a further boost for the need to deploy the new media for activities beyond social engagements and interactions. The Chief Executive Officer of Havillah Tent, Olukayode Alaka, stated that the idea for the platform came as a result of the need to meet a perceived need in the society,
making urban roads less congested by having less cars on the road and less wastage of man hours spent in traffic, promoting the go green initiative and helping out those urgent and unplanned disruptions in the everyday routine of life due to a breakdown and so on. In chat with THISDAY, Alaka, explained that, “Basically, the site is like the old yellow pages, and so it’s legally buyers beware. But we do, on the point of adding profiles of the various workmen and contractors, we go to their workshops to carry out on the spot assessment and have at least basic knowledge that they are who they say they are, we also intend to get a security company run checks for our artisans and business profiles. We must also note that security issues are two ways, vendors and end users. We have also considered end users that do not want to pay after receiving service up to and including claims of theft and damages, which is why we suggest that before getting to any site, all vendors conclude agreements before starting jobs, as well as take and agree on immediate inventory and their state of use,” he stated. Alaka also stated that, “the Contact Us segment would have our contact details contact@oniseowo.com , our phone numbers, also having a form for mailing us which would be acknowledged to the clients email with a noreply@oniseowo.com. Find an ‘Oniseowo’; this should take the client to the main advert page where profiles of artisans are displayed. These profiles can be divided into different categories: Genera-
Alaka
tor, Vehicles, Home Repair/Maintenance, Home Decor/Design, Plumbing, woodwork, Electricals/Electronics, Domestic Workers, Fashion & Design, Hair & Beauty, Gardening/ Landscaping. Speaking further on the concept, Alaka explained that “the site will solve a lot of problems in the society. It will link service providers, artisans, tradesmen and workmen with those who need their services. Besides, it came as a result of meeting a perceived need in society, making the
society go green, fewer cars on the road, less wastage of man hours spent in traffic, helping out those urgent and unplanned disruptions in the everyday routine of life due to a breakdown and so on. The site is configured in such a way that when someone who needs a service provider goes on the site, the information he provides will throw up available resource person or businesses closest to him so that no one has to travel long distance to execute a job. It was also gather that the profile for each oniseowo as it would appear to the client would show profile picture, contact details, recent passport photograph, introduction of business or and business owner, area of expertise, physical contact address, email, and an ability to rate the service of the artisan or contractor using stars and comments by clients. Also the oniseowo profile is designed in such a way that clients are advised to always come back after the service delivery to rate the profile, and they are encouraged to do so on the site rather than do so to the artisan. Depending on the subscription class, oniseowo.com also assign @oniseowo.com mails to them at a premium fee. “We have also taken into consideration the likelihood that an interested tradesman or artisan wants to enlist but he is not internet savvy and does not know how to go about it. In this case we have people who will go over to such person and help him log on and have his profile listed on oniseowo. com after the person has satisfied all our requirement including safety and competency tests,” Alaka added.
A
WEEKLY PULL-OUT
31.07.2016
AITY DENNIS
A SONGSTRESS’ BUNDLE OF JOY
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T H I S DAY, T H E S U N DAY N E W S PA P E R • JULY 31, 2016
COVER
AITY DENNIS
A SONGSTRESS’ BUNDLE OF JOY For over 20 years, duty took popular Nigerian gospel musician, Aity Dennis, to many child christening events, either as a performer to entertain guests or a clergy to conduct formalities. Unknown to many, that feisty, smiling lady often returned home to cry for the inability to raise children of her own. At her recent golden jubilee, she recounted her varied experiences, and how she had a set of twins, three years after she hit menopause, to Nseobong Okon-Ekong and Vanessa Obioha
I
t is impossible to be around popular Nigerian gospel musician, Aity Dennis, and not share in the excitement which comes out of her so very easily. With Aity, the frequently used phrase, ‘no dull moment’, finds a practical expression as she literarily moves about in an energetic way and with more movement than necessary. None of these vigorous activities including her permanent smile is an affected nuance. It is just the way she is. The way she carries on, one would be hard put to believe that she ever has some sober moments when her head is not in the clouds. If she was not a singer, Aity could easily have sustained a successful career as a comedian or an actress. Always an excellent company, she is never in want of jokes; being around her means signing up for a prolonged season of laughter. She does not even mind if the joke is on her. All she wants is to generate laughter and brighten an otherwise frowning face. Everyone was holding on to their sides to stop from bursting out of laughter when she said if God was not on her side, she would have been a failed musician. “Who would listen to a lady who sounds like a man”? Describing herself as the female baritone of Nigeria, she narrated how hotel staff members frequently mistake her for a male each time she makes an order on the phone. Many a guest at her recent 50th
birthday celebration in Lagos was surprised to hear one of her best friends of over 30 years disclose her other side, her soft underbelly. The Aity many do not and may never know: Her moment of weakness, when she is overcome by a deluge of emotions. Not a few were amazed when Aidee made that revelation at the Sure Word Assembly in Okota, Lagos. It was almost unbelievable that the amiable woman who has been repeatedly and fittingly described as a vivacious lady could be weighed down. Anyone who knows Aity will easily attest to her sanguine temperament. To say the charming Akwa Ibom State-born musician had ever cried raised some eyebrows, particularly on this special day where friends, family and loved ones gathered to celebrate her. How could anyone envision the bubbling and energetic singer in tears? In her dramatic manner, she leaned over the table between the reporters and herself, as if to tell them something in confidence. “I cry o, but not all the time. My husband knows that if I want to cry, I cry wholesale, not retail. Sometimes some things will come upon me and I just break down. I remember those years, over 20 years of waiting for a baby. I am a pastor. Sometimes I come to the church and I dedicate babies and I’m happy-golucky person but when I’m done and I’m back from church, I am very fine. At other times, I’m like ‘excuse me, what
Aity with husband, Dennis and the twins – Awesome and Gladsome
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COVER THIS TIME LAST YEAR, SHE WAS IN A JOYFUL MOOD. THE LORD HAD GIVEN HER A MIRACLE. JUST WHEN SHE HAD RESIGNED TO THE PAINFUL FATE OF CHILDLESSNESS, THE UNEXPECTED HAPPENED. SHE PUT TO BED TWO BOUNCING BABIES, AFTER 25 YEARS. COMING TWO YEARS AFTER SHE HIT MENOPAUSE, NEWS OF HER MIRACULOUS TWINS SPREAD LIKE WILD FIRE. FRIENDS AND FAMILY MEMBERS FROM FAR AND NEAR THRONGED HER CHURCH TO REJOICE WITH HER AND ALSO TO SEE THE GREAT MIRACLE GOD HAD DONE FOR HER. AND IT WAS JUST LIKE AITY TO THINK UP INGENIOUS NAMES LIKE AWESOME AND GLADSOME FOR HER TWINS
really happened? Why don’t these babies know my address?’ I will just be very quiet and when my husband notices me in that mood, he knows the cloud has descended and he has to put humptydumpty back in shape again. I cry very well. I cry when I want to. I can easily come back to myself. When you cry, you ease the negative emotion instead of bottling it up,” she said. It was an over-joyous Aity, looking resplendent in her red attire matched with a head gear and glittering accessories that waltzed into the hall, accompanied by her husband and a train of female friends and family members in similar attire. Dancing, singing, smiling and apparently charming in her outfit, heads magnetically turned to gaze at her and were soon enraptured by her lively mien. That is the Aity the world knows. The Aity who danced and smiled away the burden of childlessness for close to 25 years, hiding her tears from the world. For her golden jubilee, Aity put up a musical concert. Copious billboards displayed messages at the beginning of Greenfield Estate leading to the venue had gone ahead to heighten the frenzy. Ibiso, Queen Favour, Ola Hassan, winner of the most talented gospel music artiste in Nigeria contest, Broda Martins, Praise Machine, Emeka Aaron, were among the lined-up artistes. The church’s resident musical groups -Tribe of Judah- split into two; a classical
section that rendered hymnals and a contemporary ensemble that entertained with modern-day gospel tunes kept the audience on their feet for most part of the day. Even the married women of the church were not left out of the fare. Decked out in ethnic attire, they put up a scintillating dance performance at the event. From one performance to another, the atmosphere was supercharged with smooth melodies. To say the hall spilled with guests would be an understatement. At a point, members of the church were begged to leave their seats for guests. Only few complied. Even if there were canopies outside with large screens displaying the action on stage, most people preferred to watch Aity live. Sanitation department volunteers worked extra hard to maintain a spick and span environment as more and more guests thronged the hall. It may be said that Aity surpassed herself at her golden jubilee. She engulfed the gathering with her theatrics. Was it when she joined Queen Favour on stage to dance to the artiste’s hit ‘E Don Do Am? Or when she competed with Ibiso for who could wriggle her waist better. By the time she came on stage to make some remarks, it turned out to be a performance. Taking the audience from one of her hit songs to another, she interspersed the performance with testimonies from her interesting even
if eventful life. To say she brought the house down with her theatrics would be stating the obvious. It is not by coincidence that the season of joy that visited Aity last year extended to her golden jubilee. This time last year, she was in a joyful mood. The Lord had given her a miracle. Just when she had resigned to the painful fate of childlessness, the unexpected happened. She put to bed two bouncing babies, after 25 years. Coming two years after she hit menopause, news of her miraculous twins spread like wild fire. Friends and family members from far and near thronged her church to rejoice with her and also to see the great miracle God had done for her. And it was just like Aity to think up ingenious names like Awesome and Gladsome for her twins. Indeed the birth of her twins is a big testimony to Aity and husband, Dennis, who has written a book, ‘Waiting Dad’ out of the experience. Not one to be outdone, Aity also launched a book - He Kept Me - which captures the story of her life at her golden jubilee. The book recounts the experiences and childhood memories of the feisty singer. In more than one way, Aity’s life is like a story from the Bible. For instance, you can relate the incident surrounding her pregnancy to that of Sarah, the wife of Abraham. Indeed, a chapter in her book discusses her understanding of Sarah’s mirth when she was told that she
would be pregnant. It was in 2008 that Aity first got the prophecy that she will have a set of twins while in the hospital. But in her humorous manner, she shrugged it off. After almost 18 years of marriage, there was little hope she would raise children of her own. Many times doctors had confirmed her pregnant only to tell her later that it was a mistake. It didn’t help matter that her husband, Dennis Inyang, the presiding pastor of Sure Word Assembly, prayed for the fruit of the womb for other women and babies leapt out of their womb. So how come hers was different? To make matters worse, an unfriendly fertility treatment had ceased her period, making her chance of getting pregnant slimmer. Yet she wanted children with every fibre in her body. It was at those times that Aity broke down. “In fact, on the day I got pregnant of my twins, I was crying. We usually go to Redemption Camp every year. We take our workers there. As we were about to leave our hotel to minister to others, my husband came out of the sitting room to meet me crying. He asked what the problem was and I told him I wanted a baby now. I was crying and held his leg, by this time my period had ceased for three years. In my culture when you go down and hold someone’s leg, it means that you have come to your wits end; that you need to be helped. I told him I wanted to have my baby this
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COVER
Aity with her band members… performing on stage
Aity taking a wefie with siblings
year. He told me not to worry that I will have mine. So I took a seed of N200,000 and sowed to him not as my husband now but as a man of God. I have seen him pray for others and they have babies so why should I be in his house and without babies. So he picked me up and comforted me. I also gave him a list of other women to pray for them too.” After sowing the seed, Aity went about her business. Little did she know that the Lord had set in motion a miracle. Four or five months down the lane, she became pregnant but was unaware of it. She observed that she had frequent spells of dizziness but quickly attributed it to lack of multivitamins intake. Even when she visited the hospital and was told that she was pregnant, she laughed in doubt like Sarah. The doctor revealed to her that she was carrying twins but she still didn’t believe it. To be sure, her doubts didn’t spring from her lack of faith, but
various medical reports from different doctors had resulted in false hopes. This time around, she was being careful not to get too excited by the news of her pregnancy. By March 2015, she put to bed two dazzling twins. Call her an actor, comedian and you will not be far from the truth. However, the talent that has given her international prominence is music. She discovered her talent at an early age. After several years in the media, she dedicated herself to full-time music ministry. With over 3,000 songs to her credit, perhaps, her cutting edge is the propensity for singing in her native language. Nevertheless, she has also sang in other languages like Spanish, Ibo, and Yoruba. Her inspiration comes spontaneously. For instance, when she wrote her song ‘Ankpanidem’, she was on tour in Kenya. Through her music, souls have been won, the dead raised and sick ones
healed. “My music mission is to give people hope, no matter how bad the situation is. If you hook on to Jesus, it is still possible.” Luckily for Aity, she is blessed with a loving husband, who not only supports her but is also a great influence to her music. “He has good musical ears. He vets my music thoroughly. He knows which song is going to be a hit. I can wake him up by 2:00a.m to listen to my song.” One thing is certain; Aity will always be a free-spirited human being. Try as much as she can to be a quiet person, it never works for her. On many occasions she tried to be solemn at concerts, it always ended up the other way. Her genuine smile and sense of humour keeps her aglow. “I think life is a mirror. If you smile at it, it will smile back at you, if you frown, it will frown back at you,” she quipped.
CALL HER AN ACTOR, COMEDIAN AND YOU WILL NOT BE FAR FROM THE TRUTH. HOWEVER, THE TALENT THAT HAS GIVEN HER INTERNATIONAL PROMINENCE IS MUSIC. SHE DISCOVERED HER TALENT AT AN EARLY AGE. AFTER SEVERAL YEARS IN THE MEDIA, SHE DEDICATED HERSELF TO FULL-TIME MUSIC MINISTRY. WITH OVER 3000 SONGS TO HER CREDIT, PERHAPS, HER CUTTING EDGE IS THE PROPENSITY FOR SINGING IN HER NATIVE LANGUAGE. NEVERTHELESS, SHE HAS ALSO SANG IN OTHER LANGUAGES LIKE SPANISH, IBO, AND YORUBA. HER INSPIRATION COMES SPONTANEOUSLY. FOR INSTANCE, WHEN SHE WROTE HER SONG ‘ANKPANIDEM’, SHE WAS ON TOUR IN KENYA
T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
High Life
59 with LANRE ALFRED 08076885752
...Amazing lifestyles of Nigeria’s rich and famous
Sour Grapes...Intrigues as Mohammed Indimi’s Daughter, Rahma, Bewails Failed Marriage to Mohammed Babangida
•Billionaire heiress scurries to Instagram to absolve self of blame on controversial audio leak
T
he rabble of medieval English county families baying for broken glass pales in comparison with the rancour currently tearing at Rahma Indimi and her estranged husband, Mohammed Babangida, scion of former military president Ibrahim Babangida dynasty. Since their marriage hit the rocks, Rahma has known no peace. Having suffered the action and counteraction that projects the reciprocal struggle of discordant feelings in wedlock, Rahma was devastated to see her marriage crash to the disharmony that resulted from her protracted marital blues. The daughter of billionaire businessman, Mohammed Indimi, was clearly one of those brides who, having gotten married, could not settle down to enjoy wedlock. Her marriage was ravaged and broken by upheavals. Despite hopes that she and her husband would survive the rigours and intrigues of celebrity marriage,
Okunade Sijuade
MARRIED TO A DEITY...ONE YEAR AFTER, WHY LATE OONI OF IFE’S WIVES CAN NEVER REMARRY The life of widows impute a horrid circumstance; it manifests different strokes of gloom on the poor, forlorn wives and mothers whose loss of their beloved husbands dole unequal miseries on to their circumstances. And none other understands this sad, brutish fact than the widows of the late Ooni of Ife, Oba Okunade Sijuade. The latter ’s
they lost that loving feeling and the magic that imbues marriage with bliss. Although the sordid details of their relationship is currently an open secret in high society circles, Mohammed, his family and friends are keeping the news as a closely guarded secret. Mohammed is reportedly shocked about how things degenerated to the point of separation between them. But he is taking solace in the fact that nothing happens without the imprimatur of the Almighty. But while the son of Rtd. General Ibrahim Babangida rediscovers joy in the arms of his first love, Umuani, his estranged wife, Rahma, is stuck with the pain and intrigues of their separation. Recently, Rahma reacted to the leaked audio of Mohammed and his wife purportedly posted online by her. She said she wasn’t the one who leaked it and does not in any way support the action. widows, besides being left with a home without a man, are forced to exist like rejects in a reality that does not yet exist. The late monarch’s widows can never remarry after the demise of their husband, so revealed a palace chief. The chief, who pleaded anonymity, disclosed that the order was prescribed by the Ife tradition since the Ooni is not considered dead but to have transited to a higher realm. He reiterated that the Ooni still lives, stressing that it is forbidden for the widows he left behind to re-marry. The late Ooni’s wives are Oloris Morisola, Ladun, Odunayo, Adedolapo and Linda and their ages range between 40 and 60. The first wife, Olori Yetunde, the mother of the first son, Prince Adetokubo, died some years ago, long before Oba Sijuwade. However, the first year remembrance of His Imperial Majesty, Oba Okunade Sijuwade, Olubuse II, held last Thursday, with a Thanksgiving Service at St. Paul’s Anglican Church, Ayegbaju, Ife, followed by a grand reception at the Castle of Mercy, Ede Road, Ile-Ife. FAILED HEALTH! GODSWILL AKPABIO’S WIFE, UNOMA, TERRIBLY SICK Decay and disease are never beautiful, they
Rahma
bring perfect misery to the fairest of mortals’ imperfect body and soul, like the translucent tear of the shellfish and the hectic glow of high fever. Ask Senator Godswill Akpabio, he knows better now. It almost snuffed life out of his wife, Unoma and cast his family in the vicious grip of inconsolable grief. The news of Unoma’s debilitating ailment resonated like murderous of a mad mob hounding its prey to sad death. The story caused panic within Nigeria’s socio-economic space. However, like
random malevolent news at the end of its spell, news of her sickness dissipated into thin air to make room for the reality of her existence. Unoma evaded the long, cold clasp of death when she slipped into coma after a major surgery in a German hospital. Although, her husband, Senator Akpabio, who has been talking about her health to everybody who cares to listen, has not revealed the actual nature of her ailment, but people have begun to speculate about the nature of her affliction. Their speculations of
Unoma Akpabio
Cont’d on pg. 60
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HIGHLIFE
Wedding Across the Seas! Bola Tinubu Takes the Rich and Famous to Milan for Son’s Marriage
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f fortune can be harvested as gold and silver grapes and blessings flourish like leaves and silver fleurs-de-lys, the life-path and home of Asiwaju Bola Tinubu would glitter like a barn full of treasure and a life well spent. Tinubu is that powerful! However, the idyllic city of Milan, Italy, will once again open its bowels to the crème of Nigerian society in few days, 9th and 10th August. Milan will creak at the eaves for Nigerian politicians. Seyi Tinubu, the son of Asiwaju Bola Tinubu, twotime governor of Lagos State and All Progressives Congress (APC) leader, is getting married to Layal Holm, his Lebanese lover of months. Expectedly, Tinubu is leaving no stone unturned to give his son a wondrous wedding. Until their union, they were like jagged pieces of two glass hearts yearning for their missing parts. Then they found each other and fit perfectly in place. The first molded with the second and in the heat of the moment, held from head to toe. A perfect masterpiece, a love so
high it despises going low. Predictably, many people are eager to be part of the memorable celebration. Not a few people have been jostling to lay their hands on a copy of the invite, but unfortunately, it would be easier to embark on a round-trip through the Bermuda triangle than to get the invitation card. That is how scarce and exclusive the party would be. Seyi is a Law graduate. He acquired his LLB degree from the prestigious University of Buckingham, United Kingdom. He acquired his Masters in Corporate & Commercial Law at the same university where he came out on merit. Layal on the other hand, is of Lebanese and Nigerian descent. She is said to be a brilliant consultant at foremost auditing firm, Price Waterhouse Cooper (PWC). The 25-year-old is a graduate of Political Science and African Studies at the SOAS (School of Oriental Studies) University of London. She also has a Masters in Entrepreneurship & Business Management from the University of Surrey. and his corridors into thin air. Many other political associates and acquaintances who flaunted their relationship with him are now denying having anything to do with him. Before now, the home and office of the one-weekone-trouble politician were constantly filled with friends, politicians, contractors, favour seekers and hangers on. But now, his office is nothing better than a deserted island just like his home. The impending wrath of the EFCC has caused him to withdraw from the public glare until things cool off.
course, vary from the logical and moderate to the improbable and extremely wild. Sources close to them, gave subtle hints about the true nature of her affliction. The details will be revealed in due course. FAIR-WEATHER FRIENDS...GOV. FAYOSE’S FRIENDS, ASSOCIATES DESERT HIM •FEAR OF EFCC SCARES FRIENDS AND ASSOCIATES OF EKITI GOVERNOR
Governor Ayodele Fayose is not a man of steel. Having realised that, his coterie of friends and political associates have stopped ennobling him as a warrior forged of steel and decades of exposure in a burning furnace. The secret is out: when the going gets tough and the heat intensifies, even a tough-talking Ayo Fayose loses his nerve and exaggerated wits. Indeed, the loquacious and highly controversial governor of Ekiti State may have met his waterloo in the successive intrigues bedeviling his government and political career. But while he stews in boiling waters, his closest friends and associates have deserted him. Friends and political associates of Governor Fayose began to avoid him soon after the Economic and Financial
Seyi Tinubu and Layal
the Executive Director of Marketing and Divisional Head of Real Specialties at Real Groups Ltd. While there, he coordinated the sales and marketing activities of the Specialties division. He also served as the commissioner for Establishment and Training between 2004 and 2005. It was gathered that Jide
BACK FROM THE BRINK...JIDE SANWOOLU ENJOYS SECOND CHANCE Ayo Fayose
Crimes Commission (EFCC) froze his bank accounts and commenced investigations about his alleged role in embezzlement of and diversion of public funds amounting to billions of naira. Immediately the EFCC pronounced him as a person of interest in its ongoing anticorruption campaign and investigations, most of Fayose’s friends vanished from his side
•HOW LAGOS GOVERNOR, AKINWUMI AMBODE, RESCUED FADED SOCIALITE FROM OBSCURITY
Second chance is a treat for the man who had experienced fortune and rank only to lose it. Ask Jide Sanwoolu. The former Lagos commissioner has finally reencountered bliss in trying hours, like the sojourner who discovers a babbling brook in the middle of the Sahara. Jide has a reason to smile again after a long hiatus from the business and political scene. It would be recalled that he served as
Jide Sanwo-Olu
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HIGHLIFE
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Marital Blues for Cecilia Ibru’s Daughter
airy tales never last forever. The romantic world, the maneuverings of cupid, the dilemmas of conscience and egotism are all critically responsible for the failure of most silverspoon marriages. The truth probably dawned on Vivi Ibru, daughter of former MD of Oceanic Bank, Cecilia Ibru, like a blister of eternal damnation. Her estranged husband, Aleksander Stankov, has finally filed for divorce to enable him move on and explore better possibilities in love. Their blossoming marriage hit the rocks over what Stankov described as Vivi’s brazen refusal to play the dutiful and humble wife. News of their stormy marital union initially filtered into the social space as snippets, however, the reality dawned on everybody when Vivi moved out of her matrimonial home with her three children in tow. Friends and family members of both parties intervened in heartfelt
who also worked for former deputy governor of Lagos, Femi Pedro, allegedly left him to sustain his loyalty to former Lagos governor, Bola Tinubu. Jide worked closely with Tinubu’s wife, Senator Oluremi. But soon after his stint in the corridors of power, he faded off the political scene. Rumour had it that he got caught in certain intrigues that left him flat broke and without a political base. Jide was totally forgotten and abandoned in his time of need. Nothing was heard of him again until very recently when Governor
Robert Mbonu
bid to reconcile the estranged couple but the duo was not interested in saving their marriage thus constituting a very sad end to their fairy tale wedding. N ow, a l l t h e b e a u t i f u l vision the couple had has been consigned to t h e wa s t e b a s ke t o f history as what might h a ve b e e n , ra i s i n g questions about the w i s d o m i n s i l ve r s p o o n marriages. Oftentimes, t h e e s t ra n g e d c o u p l e s s h a m e l e s s l y wa s h t h e i r dirty linens in public r eve a l i n g t o a l l a n d sundry things that are b e s t ke p t s e c r e t s . M a n y a party to such marriages wo u l d r eve a l t h a t t h ey had been victims of a r ra n g e d u n i o n s a n d i n c o n ve n i e n t b e t r o t h a l s t h a t n eve r e n j oye d t h e i r consent. After spending so much money, the farce devastatingly ends oftentimes for the two strange bed fellows forcefully united on the altar of their parents’ vanities and egotism. It’s indeed a pitiful world for these scions of the rich.
two years abroad, in the United States and United Kingdom, specializing in the emerging all important field of Risk Management. During the period, he qualified at the UK Institute of Risk Management (IRM), and proceeded to Stern School of Business, New York University, where he completed a Master of Science post graduate Degree in Risk Management. Afterwards, THE RETURN OF ROBERT MBONU he returned to Nigeria precisely, four weeks ago Yes, Robert Mbonu is back! His newly established to actualise his pet dream risk management consulting of a risk management firm. and advisory firm (RMCIR), Thus he established a risk management consulting and is conducting a risk advisory firm - RMCIR. The management training and company is conducting a seminar in conjunction Risk Management training with the Institute of Risk Management (IRM), United and seminar in conjunction with the IRM (UK) for 200 Kingdom (UK), for 200 managers of Heritage Bank managers of Heritage at the moment. Heritage Bank. Heritage Bank is Bank is therefore, taking thus taking the lead to the lead to ensure a well ensure a well enshrined enshrined risk culture risk culture permeates entire organization. the entire organization. According to Mbonu, The IRM is the world’s his medium term plan is leading enterpriseto help financial firms wide risk management and other organizations education institute. It understand the risk would be recollected framework that should that after his banking exist in the environments feats which included they operate by clearly the industry acclaimed articulating their risk resurrection of Societe appetites, in regard to General Bank of Nigeria the regulatory risk limits (SGBN) and its successful imposed on each sector. transformation to Heritage To this end, he hosted his Bank, he retired in 2014 visiting partners from the to specialize in an area of IRM (UK) at the Southern finance that was very dear Sun Hotel, Ikoyi, for to him: Risk Management. cocktails last Monday. Thus he spent the last Akinwumi Ambode came to his aid and restored him to political limelight by appointing him as the MD/CEO of Lagos State Property Development Corporation (LSDPC). Thus Jide currently controls major properties in Lagos as you read. This no doubt gives him cause to smile after suffering the torment of abandonment in the political wilderness.
Cecilia Ibru
DEWUNMI OGUNSANYA’S BROTHER, ADE, FINDS HIS PERFECT RIB… “Now I know what Love is,” said Virgil, a Roman poet in the throes of love. These days Lagos city big boy, Ade Ogunsanya, the cousin to Dewunmi Ogunsanya, the chairman of Multi-Choice, is feeling just the same. Ade is living his dream and having the time of his life with his new wife, Ope Ogunsanya. Having outgrown his fear of remarriage, Ade decided to pitch his tent with Ope, his lover of many years and mother of his baby. Until he remarried, he was married to Simi Ogunsanya. The marriage hit the rocks over irreconcilable issues. Interestingly, Ade, hopeful of reconciliation, swallowed his pride and approached some of their friends pleading with them to intervene and help reunite him with his estranged wife. To his disappointment, Simi rebuffed his overtures. Ade had his fill of women sooner than he expected prompting him to propose to Ope, his long abandoned girlfriend. Ope agreed to his overture and the two have since settled down to life as a married couple. They are so taken by each other that Simi, Ade’s exwife, will smart with envy if she sees how the duo carry on lovingly with one another.
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entertainment
with nseobong okon-ekong 08114495324, nseobong.okonekong@thisdaylive.com
African Music Giants on Parade in ‘76 Nseobong Okon-Ekong goes behind the scene of the much expected period movie, ’76 to offer a foretaste of the soundtracks
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he much expected movie, ’76 directed by Izu Ojukwu has many factors that recommends it, one of which is the rich and interesting parade of Nigerian musicians whose creativity will be on display through their songs. Although a couple of them have passed on their memories are still alive through their timeless works. Of the featured soundtracks in the movie, only Miriam Makeba’s ‘The Naughty Little Flea’ and ‘Where Does it Lead’ are sourced from an artiste outside Nigeria. Released in 1960 on a selftitled album on RCAVictor label, ‘The Naughty Little Flea’was originally released by Norman Byfield Thomas, a Jamaican artiste whose stage name was Lord Flea. Miriam was on exile from South Africa, fighting for a new direction. The symbolism of her struggle was not lost on the film. It was an African struggle and it embodied the time. Explaining how they got rights to use the different songs in the movie, Adonijah Owiriwa who shares credit as executive producer with Tonye Princewill said they had to deal with a number of publishing companies within and outside the continent. Their first port of call was the Copyright Society of Nigeria (COSON). He said, “COSON was very helpful and assisted with linking us up with publishers that had rights to some specific songs. COSON also assisted with negotiating fair deals with the publishing companies on our behalf.” However, some rights were obtained directly from the owners of the songs. The administrators of Fela’s Estate in Nigeria, according to Owiriwa, “were gracious enough to give us the right to use
MTV BASE VJ SEARCH OPENS Thousands of potential new VJs to represent the youth and music channel, MTV Base have another opportunity to showcase their talent. The channel is on the hunt for a smoothtalking, quick-thinking, music-loving newcomer with swag and a big personality to become the stand-out new Nigerian VJ (TV presenter) for the youth and music channel. For your chance to be the MTV Base star of the future, head down to the 2016 MTV Base VJ Search - Nigeria auditions for your chance to impress the judges and win a 2-year contract with MTV Base worth N20 million. You could be the one lucky winner walking away with the hottest job in entertainment. The new VJ will become one of the key faces of the music network, hosting programmes on MTV Base. The winner will also interview stars, emcee parties and concerts, walk the red carpet at entertainment events and travel all over the world representing MTV Base. Auditions will be held at NAF Conference Centre & Suites, Abuja (August 9), De Dome, Enugu (August 12) and the Classique Event Centre, Lagos (August 16). MTV Base’s brand new VJ will be following in the footsteps of MTV Base veteran Ehiz Okoeguale who won the
A band entertaining in ‘76
Fun scene in ‘76 one of Fela’s greatest songs in the movie without charge. In fact, the representative of the family that attended to us during the discussion said: “This is indeed a laudable project, preserving our music and culture. I am sure Fela would have even offered to perform live in your movie if he were alive today.” Four of the artistes featured in ’76 have passed on. They include highlife music giant, Cardinal Rex Lawson who led the Port Harcourt -based, Majors Dance Band. His hit ‘Jolly Papa’ is relived in the
channel’s second Nigerian VJ search back in 2013, and was transformed overnight from a job-seeker to a bona fide TV star! Ehiz has subsequently hosted a multitude of MTV Base programmes and showbiz events, including the Official Naija Top 10, Word on the Street, and Real Talk, and interviewed stars from Lagos to Amsterdam and Hollywood, including artists like Tinie Tempah, Wale, Jidenna, Davido, Wizkid and Tiwa Savage. “The most important quality required in an MTV Base VJ is that they should have the ability to communicate with and connect to our audience,” comments Alex Okosi, Senior Vice President &
movie. Released in 1976, the year that the movie is set, Nelly Uchendu’s ‘Love Nwantinti’ makes it all a bit noteworthy. Often, Mike Obianwu who is credited with playing piano and organ on the recording is acknowledged with joint rights to the song. Fela Anikulapo Kuti’s 1971 hit, ‘Buy Africa’ signposts an era when the military government of the day in Nigeria announced Africa as the centerpiece of its foreign policy - a guiding
Managing Director, Viacom International Media Networks (VIMN) Africa. “We’re looking for someone who lives and breathes contemporary youth culture, with a strong personality, and the energy and confidence to build their brand and make a long-term career in the entertainment business.” The MTV Base VJ Search is open to Nigerian citizens aged between 18 and 25, with fluent spoken English and a valid Nigerian passport. The winner of the MTV Base VJ Search Nigeria will be revealed on September 25. MUZIK AFRICA MUZ MAGAZ MAGAZINE AWARDS
Ehiz
The African Muzik Magazine Awards has unveiled the nominees list for the third edition of the African music awards in the diaspora. Following the outstanding success of the 1st and 2nd editions, AFRIMMA expectations are high for this year’s edition set to hold in Dallas, USA on
principle that has been sustained by subsequent governments till today. However, a few discerning critics have questioned the choice of ‘Buy Africa’. For an artiste with a known history of rebellion, particularly against military governments, the question is why was one of Fela’s songs with scathing criticism of the military not used in ’76. Princewill explained that the movie producers did not want to get too political by forcing its views on the audience. “We had a very good working relationship with the Nigerian Army. The army may have wanted us to make them less brutal, but that would have been unrealistic. Having a good relationship with the army did not make them immune to criticism. ’76 shows it as it is. A good working relationship involves mutual respect. Interestingly the army sees the movie as a platform that would further cement understanding between the military and civilians, even admitting that times are different now.” Prince Nico Mbarga’s, ‘Sweet Mother’, one of the greatest hits out of Nigeria which is widely acknowledged as the bestselling album of all times also helps to create nostalgia in the movie. Mbarga has the privilege of having another song, ‘Aki Special’ in the movie. With Mbarga and Makeba, ’76 has the distinction of being a celebration of Africa and the resilience of the African spirit. Mbarga was half Cameroonian. That accounted for the peculiar flavour in his music. His ‘Sweet Mother’ was rejected by the multi-national, EMI. He had to get the Onitsha-based Rogers All Stars label to release the song which signposted that era. The two Victors - Victor Olaiya and Victor Uwaifo also register their presence with their creative works, ‘Baby Jowo’ and ‘Giodo Giodo’ respectively. Olaiya’s song has been recently remixed with popular Nigerian pop artiste 2Baba as ‘Baby Mi Da’. Some of the songs were performed live in night club setting in the ‘70s and others were played over the radio. The songs served to define the mood of the movie. In trying to recreate or bring back how life was lived in the ‘70s, music of time is very significant. The music of the time is definitely going to evoke nostalgic feelings especially with those who lived and rocked the music at that time.
October 15. Some of Africa’s big hit makers and the most impressive names on the African music scene in the past calendar year earned a mention in the highly competitive categories. Wizkid, Flavour, Davido, Sarkodie, Aka are joined by fresh faces like Falz, Mr. Eazi, Locko and Bisa Kdei on the nominees list. Also for the first time, North African music and Caribbean music have been recognised with categories. Celebrating African music and heritage, the 3rd edition of the annual African Muzik Magazine Awards AFRIMMA promises to be another festival of African music and the nominees list has set off the massive countdown. MARLON JACKSON, SHAGGY PARTNER MOTHERLAND BECKONS Leading American musicians Marlon Jackson of Jacksons’ Five and Shaggy have teamed up with globallyrecognised organisations alongside past and present US Mayors to facilitate a $1.4 billion Technology City project that is to replicate the Silicon Valley in Ile Ife, Osun State. Projected on the platform of Motherland Beckons, the multi-sectoral development vehicle conceived by Otunba Wanle Akinboboye, the project
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ENTERTAINMENT will be sited the Ile – Ife Tourism Zone declared by the Ooni of Ife, Oba Adeyeye Enitan Ogunwusi, Ojaja II. In this instance it has brought renowned US-based business groups, SprintPort Technological Group and Image Consulting to partner the House of Oduduwa, the Ooni of Ife, on the building of the technology, media and agriculture city in Ile-Ife with the Memorandum of Understanding (MoU) signed and the land for the project released. Following this development, the representative of SprintPort Technological Group, Dickson Yemi Oluwasegun, disclosed that the Technology City, is designed to make Nigeria a leader in ICT, create millions of jobs, promote tourism, thereby boosting the country’s economy and fast tracking its technological development. The Chief Executive Officer of Image Consulting, Mrs. Remi Duyile, who is the former Vice President of Bank of America and one of the facilitators of the project, expressed great delight and appreciation to Motherland Beckons that invited her from the United States alongside other professionals, including the president of All Black Lawyers in London and Wales, Barr. Peter Herbert, and Chairman of Nigerians in the Diaspora Organisation (NIDOA) America, Gbenga Adewusi, to witness the declaration ceremony of Ile-Ife as a Tourism Zone. ALL ROADS LEAD TO LOVE From the creator of top telenovelas For Love and Justice and My Heart Beats for Lola, comes the gripping, brand new telenovela All Roads Lead to Love, exclusive to Telemundo (DStv Channel 118 & GOtv channel 14). Think: scheming, suspicion, love triangles, plot twists, betrayal and revenge; this series has it all, but at its core, spins the story of Eva Soler, a woman discovering her strength through her own undoing. Played by the ever enchanting Edith González, Eva is a tough and determined beauty who always dreamed of becoming a truck-driver, so when she inherited her late father’s truck, her life started to fall into place. She found love, settled down to start a family and even established her own transport business. Fast forward a few years, and all is not well in paradise. Between her two troubled daughters, with issues ranging from Asperger’s to substance abuse, a sister who envies her deeply, and a best friend who is also her worst enemy, Eva has enough to contend with. Then the serial infidelity of her husband, Armando, sets off a chain reaction leading to intrigue, murder, conspiracy and potentially even Eva’s imprisonment. Thrown into the mix is her growing attraction for the steamy Pablo. He’s a handsome and noble ex-cop who is ten years her junior. But with a tragedy in his past, Pablo has his own secrets, and it’s no coincidence that his path has crossed with the Soler family’s.
with the likes of Terry G, Butiza, a South African hit maker, Flavour, Zikora, and Rock9. Commenting on his inspiration he said “My inspiration comes from God. My entire family especially my mother is in total support of my choice of career.” In the nearest future, Ma-king says his dream is to win awards like the Grammys, BET Awards. He says his major influences are P Square, Tuface and Rick Ross but his major influences in music include Oliver de Coque and Osita Osadebe.
Edi Lawani with a participant at the event
Artistes Managers Hold Seminar
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he Association of Music Artistes Managers of Nigeria (AMAMN) recently had a training session for its members to sanitise the artiste management sector of the entertainment industry. Ashley’s Lounge at Ikate-Elegushi (4th Lekki roundabout), played host to a multitude of recognised, practicing and fresh artiste managers on Tuesday, July 19, 2016, as the Association of Music Artiste Managers of Nigeria began the first in its intended training series of its members. The aim was not only to guide and direct upcoming artiste managers, but also to share ideas, challenges and solution so that the profession of artiste management is improved and better practiced. Titled ‘The ABC of Artiste Management’, the seminar had speakers like Akinyemi Ayinoluwa, Esq., a seasoned entertainment lawyer who spoke on ‘The Dotted Lines’, covering what to look out for and include in contractual agreements between the Artiste Manager and the Artiste and also
and emerging musician, Sir Dauda bring to life a song that will become an anthem on the lips of Nigerians in a matter of weeks. The song says a lot about the artiste’s ability to assemble lyrics and melodies out of sounds and to sonically paint a picture in our minds that relate to our everyday lives. “I love to record music that people can relate to – love, beliefs, celebrations, or just about life. I remember after recording this song, myself, Sir Dauda and Sizzle Pro kept humming the chorus,” Aramide said. ‘Funmi Lowo’ comes straight after the success of her collabo with Adekunle Gold in ‘Love Me’. She is months away from releasing her debut album.
with the record label. Ms Emem Ema, a talent manager, film producer and trained lawyer also took members on ‘The Business of Artiste Management’, with emphasis on the business aspect of artiste management and graphic representation of the financial flow in the music and entertainment industry and how an artiste manager can tap into it for their client. Mr. Ben Omesiete, a talent manager, spoke to the audience on ‘Creating and Managing Unique Brands’, while Mr. Edi Lawani, a talent and event manager expert, capped it with a training session on ‘Artiste and Event Management Basics’. The President of the association, Sijuade Adedokun said the event was meant to address the basics of the profession. At the event, membership certificate and identity cards were given to members who had completed their registration process, while Sijuade harped on the importance of dealing with only certified and trained artiste managers.
MA-KING UNLEASHES KWAJIM New kid on the block, Ikechukwu John Raphael aka Ma-King is heating up the entertainment space with his latest single, Kwajim. “I am so excited right now. My song Kwajim is making waves. Kwajim means vibration in Igbo. It was produced by Playchord,” Ma King said. The indigene of Anambra State started singing at the age of 19 miming in school competitions and clubs. He was part of a group called Hot Boys but left and joined a group called Dog Zone after which he clinched the award for Best Rapper in 2000 during a music competition that involved over 15 secondary schools in his community. Among others, he has done collabos
ARAMIDE DISPLAYS VERSATILITY WITH SIR DAUDA Afro Soul Diva, Aramide has taken her style of music to an all-new level. The Baseline Music artiste recently released a new single titled ‘Funmi Lowo’. A dramatic shift from her previous singles, Aramide impressively laces the vocals of a traditional inspired beat produced by Sizzle Pro and mixed by Tin Tin. With a unique blend of live instruments and humour, Aramide
L-R: Sylvie DeWever, ( GM, International expansion e-bay); Chris folayan, (Founder, MallforAfrica ) and Dean Ostilly, ( Director, Geographic Expansion, e-bay)
Iyabo Ikekhuah
IKEKHUAH’S TIME HAS COME After much delays and discouragement, new gospel sensation, Iyabo Ikekhuah has finally launched her debut album Olorun Ara (God of Wonders). The five-track album was launched recently at the private setting of the BHM Lounge, Ikeja, Lagos, witnessed by close friends, colleagues and family. It’s been a long run for Ikekhuah whose passion in music started at an early age but constantly pushed aside to satisfy other needs. However, an encounter during her NYSC year urged her to take the bull by the horn. She founded a band called Jesufemi in 2004 and initially wanted to launch an album with the band in 2009 but it didn’t work out. Marriage and child-bearing were among the factors that delayed the album. However, an overjoyed Ikekhuah who has been the choir coordinator in her church for ten years believed that her time has come to announce God’s wonders in her life. “I have been rehearsing this particular moment for a long time. And I’m so happy it finally came to pass.” Those who knew her passion for music testified of her resilience to achieve her dream. CEO of BHM and Publisher of TheNetng Ayeni Adekunle described her as a woman of many parts. “Music has always been part of her but sometimes life just drag you into that dark corner but when she came back to say she wants to start her music career, I was happy for her. She didn’t just call me but has already recorded her songs. She is a woman of many parts; a trained teacher, a trader, an administrator, an evangelist and today a gospel musician.” Written and composed by her, the songs are a mixture of Yoruba and Language and are available in the Orin Music Application. Ikekhuah believes that the album will offer a message of faith and hope to her teeming audience.
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ENTERTAINMENT NEWS
Beyonce
Beyonce Dominates MTV VMA After Two Years
Vanessa Obioha
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he ‘Lemonade’ singer returns to the MTV VMA with a staggering 11 nods this year. In 2014, her self-titled album was a major lead at the awards. She scooped four awards out of eight nominations. It is yet to be unknown if she will achieve similar feat this year or probably break a new record. The album’s tracks were nominated in ‘video of the year’, ‘pop video’, ‘female video’, among others. Closely behind with eight nods is the ‘Hello’ singer, Adele. Kanye West controversial ‘Famous’ is also contending with Beyonce, Adele, Drake and Justin Beiber for the ‘Video of the Year.’ Surprisingly, Taylor Swift wasn’t nominated in the category but with the ongoing drama between her and Kanye West, the rift is far from being settled. The 2016 MTV Video Music Awards will hold on August 28, 2016 at the Madison Square Garden, New York, USA.
GRAMMY TO PAY LIVE TRIBUTE TO B.B. KING The 15-time Grammy-winning R&B singer will be paid a live tribute by the Grammy Foundation and Grammy Museum on September 1, 2016. Titled Icon: The Life And Legacy Of B.B. King, the live tribute will be hosted by Scott Goldman, Vice President of the Grammy Foundation and will feature performances from Jimmie Vaughan, Keb’Mo’ and others. A pre-event VIP reception will be held at the Wallis Annenberg Center for the Performing Arts in Beverly Hills, California in addition to the live tribute performances and storytelling by artists influenced by King’s music. During his lifetime, B.B King released more than 50 albums and was awarded a Lifetime Achievement Award in the 1987 Grammys. He inspired various artistes
including John Mayer. The president of the Recording Academy, Neil Portnow described the event as an annual fundraiser to honour a music icon that will feature tribute performances by an array of talented artists that engage, entertain, and enlighten the public. Proceeds from the event will be used to support the Grammy Foundation and Grammy Museum. NOTORIOUS B.I.G. COMEDY SERIES IN THE WORKS Turner owned-cable network TBS is working on a new series inspired by the late New York hip-hop icon, Notorious B.I.G.’s lyrics. The half-hour project titled ‘Think B.I.G.’ mirrors the life of a teenager struggled with his misadventures of his city and catering for his daughter and infant son. The teen’s determination to create a better future for himself and his family finds a parallel in the late rapper’s lifestyle. Christopher Wallace grew up in Brooklyn and had his first child at 21. The network revealed that the plot lines will revolve round the rapper’s lyrics. Coming 20 years after his death, the series is among the first major projects from Turner and Mass Appeal partnership deal. MARY J. BLIGE REPORTEDLY DIVORCING HER HUSBAND OF 12 YEARS News filtered in last week that the ‘Be Without You’ singer is divorcing her husband Kendu Isaacs. The couple has been together for 12 years. The union so far did not produce any Netflix . According to TMZ, Mary J. Blige cited irreconcilable differences as reason for dissolving their marriage. Isaacs is also Blige’s manager.
Blige and Isaacs
B.B. King
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FocUs
Da Viva Stuns Audience at AFWN By Funke Olaode
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n unprecedented number of fashionistas thronged Eko Hotel and suites, Victoria Island, Lagos venue of the recent Africa Fashion Week Nigeria (AFWN). Surprises at the red carpet and market exhibition were made possible by sponsors like Da Viva. The Da Viva brand has supported the AFWN from its maiden edition in London in 2011. At this year’s fashion show, Da Viva sponsored five designers namely: House of Salem, Mestell, Eminencel 129, Nipo
Skin and Asake Oge. Each designer created 10 fabulous and breathtaking outfits ranging from casual, bridal, haut couture, to casual ready to wear on the runway worn by these models. Part of the highlight of the fashion week was the unveiling of Da Viva limited edition of pure silk made in tie and dye designs popularly known by Nigerians as adire. Basking in the euphoria of his company’s successful outing at this year’s fashion show, group marketing manager, Mr. Steve Dutton said Da Viva decided to add this pure silk to its collection to satisfy its high end customers
Warri Carnival Beckons
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rrangement towards a successful hosting of the fiveday Warri Carnival in Delta State has reached advanced stage, according to its chief promoter, Sunny Nikoro. The much-awaited maiden edition has been slated to hold between September 28 and October 1. The Carnival is targeted at entrenching Warri as a gateway to the Niger Delta region, and listing it as a tourist destination in Nigeria. “The Annual Warri Carnival also aims at unifying the diverse ethnic nationalities that existed to make Warri the cosmopolitan society of old, and foster
peace, unity, love and cordial co-existence between the ethnic groups that Warri was identified with in the past,” Nikoro stated. The Warri Carnival has been organised to coincide with the nation’s 56th Independence Day celebration on October 1. “Apart from entertaining the anticipated millions of spectators coming from within and outside the state, the Warri Carnival will bring out the joy and bliss associated with the season, while also promoting commerce, laughter and love among the indigenes of Warri,” he went further to say. Warri city is one of the major hubs of petroleum activities and businesses in southern Nigeria. It is the commercial capital city of Delta State, with an
estimated population of 2,000,000 people. Activities lined up for the five-day event include unveiling of Symbol of Unity, top Artists Performance and Comedy Fair, Carnival Float/Street Parade, Land Boat Regatta, Miss Warri Beauty Pageant, Cultural Dance and Performance, including Carnival Cup 2016 – Football Novelty Match. The match will feature the likes of ex-Nigerian footballers, Segun Odegbami, Frank Obire, and Henry Nwosu among others who will be playing alongside the Warri Wolves, local team. Land Regatta will feature the festival that offers a breathtaking display of the wealth and artistic splendour of the heritage of the riverine people of Delta
State. It provides an opportunity for all riverine communities and dwellers to showcase their dexterity in boat building, decoration, parading, paddling and maneuvering. The most artistic and creative boat will win a trophy. Expected at the event are Nollywood artistes, comedians and musicians. The opening ceremony will equally attract dignitaries from across the nation with Governor Ifeanyi Okowa rendering the keynote address and unveiling the carnival mascot. Special music performance will be rendered by top Warri local artists with Tony and Emma Grey as main performers among other notable artistes.
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Onoshe
Nwabuikwu
airtimeplus98@gmail.com
I
What Are Your Kids Watching?
t’s that time of the year and we get to have this conversation, again. The kids are home for the summer holidays or what we used to call “long vac”. On one hand, parents are happy to have the kids home. On the other hand, there’s the challenge on how best to occupy/entertain them. Add the fact that some children are going to spend over eight weeks at home and you can picture some parents feeling the ‘long’ in the long vacation. My immediate concern of course is what kids watch on Television. Do you know what your children are watching on TV? Are they watching programmes/ films/shows appropriate for their ages? This would mean that you-the parents-know what’s appropriate. Knowing what’s age appropriate has been made easier by satellite/cable Television since most shows have the ratings displayed. I always remind parents that those ratings are not graphic designs on the screen; they serve as guidance. Although you also have a right to decide
what’s appropriate for your own kids. For instance, the fact that a programme is rated P13 does not mean I’m going to watch it with my almost 15 year old daughter. That’s the easier part. What about stations on terrestrial TV which don’t have ratings? Not only that, they are not always sensitive to when kids could be watching TV. Surely, it’s not so impossible for TV stations to actually have a holiday programme schedule? After all, summer holidays come every year. Still making parents lives more interesting is the fact that TV is moving from the good old box in the living room to all kinds of devices at kids’ fingertips. The typical Nigerian parent, especially those who want to show they’ve ‘arrived’, will buy the latest of gadgets for their kids. So, in addition to knowing the content of what your kids are watching on TV, think iPads, smartphones, laptops, etc. I wrote about the changing face of TV some time ago. At the end of the day, parents do have the most important task of ensuring that their kids watch
clean TV or programmes. It isn’t that they have to turn policemen. Even that would not be enough to keep kids from all the sleaze on the airwaves. A good plan is carrying the children along. As clichéic and Nigerianese as that sounds, it simply means letting the kids know the risks involved in watching certain programmes, etc. And this should be an ongoing conversation which should also entrust some of the responsibility of doing the right thing to the children. It actually helps to begin this conversation/negotiation as early as possible. For instance, when my kids were very young, it was a simple case of telling them certain musical videos were bad. As they grew older, that wasn’t enough reason. Now, as teenagers and young women trying to live right (and thanks to Youth church), we can talk about certain programmes not portraying women well, not for good Christians, etc. You can use whatever argument works. But the idea is that you’re not helpless and should not be a hapless receptor of garbage disguised as entertainment.
Who Will Win the Voice Nigeria? After months of intense competition and robust entertainment, the very first edition of musical reality The Voice Nigeria will come to an end today. These eight contestants made it to the finals: A’rese, Patrick (Team Waje); Brenda, Viveeyan (Team 2Baba); Chike, Nonso Bassey (Team Pato Ranking); and Cornel, Dewe (Team Timi). So which of them do you want to win? Unfortunately, voting closed on Wednesday. So, if you haven’t voted, all you can do at this point is to pray. As you can imagine, the road to the finals hasn’t been easy for the contestants and even the coaches.
Contestants have had to win the ears of potential coaches in the Blind Auditions, win their ‘battles’ in the Battle Rounds; and win their coaches’ vote in the Live shows (the coach could only pick one winner) or be saved by the viewers. Each finalist has had a taste of this: Each one has at one point enjoyed being saved by their coach and mercifully by the viewers at other times. Interestingly, Vicky from Team Timi had the good fortune of being saved by her coach more than once. Last week was her first time of being at the mercy of viewers and they chose to save Dewe instead. Now, that was a big surprise. Voice
for voice, talent for talent, one would’ve expected Vicky to blow Dewe out of the water as she can out-sing many a talented singer. However, when it comes to looking for votes, contestants often fail to realise they need a different strategy. Excellent singing is only one way of getting votes. In any case, at that advanced stage of the competition, talent can be taken for granted. Well, we’ll know later today who got the most votes to be crowned the first winner of The Voice Nigeria. Tune into Africa Magic Showcase, dstv channel 151, from 7 pm.
KIDS & TV What Can Parents Do? “Develop good viewing habits early in the child’s life. Most children begin watching television regularly before the age of 2, and it is easier to become more flexible as the child gets older than it is to become more restrictive. Set some limits on how much television your child can watch per day or per week, with enough flexibility to change the limits under special circumstances. Keep in mind that the average child (or adult) watches about 4 hours a day, which is probably too much TV. Many parents set a limit of no more than 2 hours of TV a day, but you may feel more comfortable with a limit that is higher or lower. ‘Encourage planned viewing of specific programs rather than random viewing. If children have a limited number of hours that they can watch TV, with some choice over which programs they can watch, they will probably become more selective consumers of television. Make sure that television is not used as a substitute for participating in other activities. It’s awfully tempting to use TV as a “babysitter” because it works so well as one, but try to do that only in emergencies and not as an ongoing practice. As much as possible, watch television with your child and discuss the things that you see. Encourage your child to think about the characters and the content of the programs and commercials viewed, and explain your own feelings and interpretations. But allow your child to express his/her own opinions which might not be the same as yours. This is especially true for older children. Even if you can’t always watch TV with your child, talk with your child about things he/she might have seen without you, or about television in general. Encourage your child to watch programmes that demonstrate helping, caring, and cooperation. Studies show these types of programs can influence children to behave in more socially acceptable ways. Balance reading and television activities. Help children to develop a balanced viewing schedule of different types of TV programmes (education, action, comedy, fine arts, fantasy, sports, and so on). Try to watch at least one episode of a new programme that your child wants to watch; don’t assume that if a programme is non-violent (or on children’s belt) that it will necessarily be consistent with your values. Point out positive examples that show how various ethnic and cultural groups all contributing to making a better society. Also point out positive examples of females performing competently both in professions and at home, and elderly people who are active and intelligent. These three groups (females, elderly and people of colour) are still often portrayed in negative and stereotypical ways. When violent actions occur in a programme, discuss them with your child. Focus especially on what motivated the character’s actions, whether your child thinks the action was right or wrong, and whether your child thinks the same thing would happen in the real world. If you don’t want your children to watch more than a few hours of television, then it’s not really fair for you to do so. If you don’t like your children to watch violence, then you might want to limit the amount of violence you watch too. Your children will learn much more from you than they will from TV, so be careful not to show them examples of TV viewing that you’d rather they didn’t learn.” •Culled from www.pre-ksmarties.com
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focUs
Her Dry Season is Over Stephanie Okereke-Linus is a multiple award-winning actress who has excelled not just as an actress but as a producer and a movie director. She has several awards under her belt, both local and international. A mother and a wife, Stephanie talks about the industry and the societal challenges that inspired the movie ‘Dry’. Mimi Ucheagwu reports
F
or people who live in the certain parts of the country where it is the tradition to give out very young girls of a certain age in marriage, Vesico-vaginal Fistula, (VVF), is not a strange disease. What is strange, however, is the way victims are treated and made to believe that they have spiritual or diabolical problems and are thus divorced by their husbands and ostracized from the community. Due to their very young age and mostly poor family background with little education, they themselves do not understand why they should suffer from VVF, neither do they have anyone to fight their cause. Thankfully, the plight of VVF victims have been highlighted by different non-for-profit groups and concerned individuals who have taken definite steps to address this issue as well as under-age marriage and child abuse. One of such individuals is the 2016 Africa Magic Viewers’ Choice Awards winner, Stephanie Okereke-Linus. Speaking about her feelings after she won the Overall Best Movie Awards for her movie ‘Dry’, Stephanie said she was indeed happy that her movie was helping to address child-birth issues, such as VVF and other maternal-related issues. “I feel very happy winning this award but most importantly I’m happy that people are getting to know more about the cause of the film which is centred on childbirth issue and VVF, among other issues affecting young female children, as well as other maternal-related problems we have in Nigeria. I am happy that with this platform people are getting to be more aware of the issues and hopefully, we pray that more things will be done concerning the situation that we find ourselves in this country”. Aside from VVF, there are many other health-related issues affecting underaged children but for Stephanie, VVF is something of a calling. It began for her when she was an undergraduate in the University of Calabar, Cross River State. As a sophomore, Stephanie launched a campaign on campus to educate fellow students on the scourge of VVF and how it could be prevented. After school and her foray into the movie world, Stephanie gave life to her long-term dream to help people with VVF. This informed the setting up of the Foundation called ‘Extended Hands’ to do just that. According to Stephanie, “It all began in my second year at the university when a friend of mine came back from the University of Jos and told me stories I thought were strange. We are all living in the same country but having different experiences and I thought it was weird. I thought to myself that I was lucky to have access to education and was able to decide what happens to my body. Today, I am married to someone I love and I believe other people should be able to have access to those kind of rights - education, health and good shelter”. In a country where the healthcare system, particularly in the rural area is below par, Stephanie believes that all hands should be on deck to provide succour for the less privileged who do not have access to enhanced medical facilities especially for sicknesses that can be corrected via minor surgery. “Not until one is faced with medical challenges before one begins to understand the dearth of our medical establishments.
Stephanie Okereke-Linus
We have heard several tales of how people have died due to either carelessness or lack of basic drugs or equipment required to save life. I had an accident some years ago and I knew the ordeal I passed through. It is something that just propels you about things that need to be done properly. You may think you are fine and nothing will hurt you but if something, especially pertaining to your health, happens to you in Nigeria, you will find out that you are also at the mercy of the rot in the medical sector”, she said. Since its official release, Dry has piqued the interest of many stakeholders and has gone ahead to win several awards, including the Programmers Awards, at the PAN African Film Festival and recently Overall Best Movie at the AMVCA 2016 edition. This does not however end here. So far, the movie has received accolade home and abroad and has again brought the plight of VVF victims to the fore. Her Foundation, Extended Hands, has gone a step further to sponsor the treatment of over 200 women living with VVF across the country and this, according to Stephanie, is just the beginning. With sponsorship from SNEPCo/NNPC, more women, it is believed, will benefit from the free treatment. As a publicity tool, Dry has been invited to many more movie festivals and Stephanie says her goal is for the world to see the movie so as to better appreciate the plight of VVF victims. With the screening of Dry, public understanding has been greatly enhanced with more people having a better
understanding that it is not a northern problem, but a problem that plagues women of certain age who should not be giving birth, across the country. In Kano for instance, the acceptance of the movie was massive and the demand for it is widespread. Unlike what most people think, it is not a Northern issue. Yes, they have a majority of people coming from there but there are young teenage girls who are victims of abuse, married off to men at a tender age even right here in Lagos. ‘Extended Hands’ has treated women in Ebonyi state, Akwa Ibom, Ibadan (Oyo) and Lagos. In order to reach out to even more people, the Foundation is always looking to partner government, government agencies or the private sector in a bid to enhance understanding of an ailment which is a national issue, and touch even more lives. “I was very happy when the Ministry of Health wrote to request for a meeting on how to better use the movie to educate the populace. The Foundation is also partnering Ford Foundation and the MDGs, since one of the millennium development goals is to eradicate diseases”, Stephanie said. According to her, lots of movie producers/actors get requests from different African countries, asking them to come and help their people and grow their market as well. It has happened to Ghollywood in Ghana and today, the industry is adding to the economy of Ghana with a strong thriving movie industry. Nigeria has huge potentials
with millions of young and talented people whose talents and energies can be channeled towards positive growth and achievements. In walking the talk, Stephanie together with her husband, Idahosa Linus, run DelYork International, an institution which trains budding actors and directors to be on top of their game. The institution has a partnership with the New York Film Academy, which has brought in a lot of experience to bear. Stephanie says if her biography was to be commissioned she would want it titled “I have seen’” and she believes that one day a Nigerian movie will win an Oscar and make Nigeria proud.
assistant editor nseobong okon-ekong senior correspondent funke olaode correspondent vanessa obioha designer ibirogba ibidapo CONTRIBUTORS onoshe nwabuikwu, temilolu okeowo, kelechi nduka THISDAY ON SUNDAY editor adetokunbo adedoja deputy editor vincent obia STUDIO art director ochi ogbuaku jnr THISDAY NEWSPAPERS editor-in-chief & chairman nduka obaigbena managing director eniola bello deputy managing director kayode komolafe
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• THISDAY, THE SUNDAY NEWSPAPER
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REMEMBERING ELECHI AMADI, AN OFFICER AND A GENTLEMAN PAGE 72
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OGHENEKARO ITENE A NEW FLAME IN NOLLYWOOD EDITOR OKECHUKWU UWAEZUOKE/ okechukwu.uwaezuoke@thisdaylive.com
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ARTS & REVIEW\\ENCOUNTER
OGHENEKARO I A NEW FLAME IN
Oghenekaro Lydia Itene figuratively shifted her make-up kit aside to create a new persona on screen a few years ago and the result is a new flame in Nigerian movie industry. Yinka Olatunbosun reports on an unusual encounter with this actress last week.
I
t was really a case of “mountain going to Mohatma” last Wednesday as this reporter received a call from Itene that she was coming to visit her. Of course, a journalist usually goes after personalities and not the other way round. To fully glean how that happened, a little flashback is necessary. It was agreed that both of them would meet at LTV grounds at noon that day but when this reporter arrived at the venue, the actress couldn’t be reached. After several minutes of window-shopping at a popular mall in Ikeja just to kill time, Itene finally called but she was going to change the venue to somewhere else around Allen Avenue. With the lethargy of the traffic officials at Allen roundabout, the short drive became so prolonged that Itene was on the verge of leaving. Frustrated at the needless merry-go-round, especially with post-malaria recovery, this reporter returned home. Of course, Itene didn’t know about the malaria. She only sensed that the reporter wanted the story and not the trouble. Besides, this reporter made a remark about people in Nollywood that she had to correct. Ask any journalist, it’s never easy getting Nollywood stars to sit for an exclusive interview. They are usually targeted at press conferences and other events for a chat. They are too busy, usually ignoring calls and their friendship with the press seems to end on the red carpet. Hence, she totally surprised this reporter when she insisted on coming to her home to have the interview. In company of her aunt, a music and movie producer, who was visiting from United States, she arrived at this reporter’s apartment in a secluded area in Iju, Lagos. Intrigued by this actress’ determination to change this age-long perception of Nollywood stars, this reporter chatted freely with her about her career and a bit of personal life, quietly deciding not to abuse the privilege of the unscheduled visit. Itene had pursued an acting career spanning three years and had recently returned to Nigeria from South Africa where she had been shooting a television series titled “Lincoln’s Clan’’ produced by Total Recall Productions. It is a collaboration between Nigerian and South African producers and has been screened on Multichoice channels. She’s also in “Tinsel’’ as the wedding planner. Her foray into acting wasn’t deliberate. Her childhood was fun; she enjoyed playing lead roles in school dramas. But then, she had a vision to be a medical doctor. She stumbled upon Biology at the University of Benin where she obtained her degree qualification and thus, life landed her in a theatre- not as a physician- but as an entertainer.
Itene
“Even at NYSC camp, we did drama and my platoon won the 4th position out of nine platoons,’’ she began. “There was a drama I did while in primary school. I performed
before an audience of more than 7000 in my school in Delta State. I became so popular in the whole of Delta State because of that drama. It was huge. It
was a popular musical where I played the role of a young beautiful woman who is wooed by several suitors but only wanted the one with money and didn’t get to
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ARTS & REVIEW\\ENCOUNTER
ITENE IN NOLLYWOOD
Itene marry at the end of the day. “I didn’t see myself as an actor I have always wanted to be a medical doctor. But somehow I fell in love with makeup artistry while watching run-way models during their back-stage prep,’’ she revealed. Subsequently, she went for a professional training after university education. Doing make-over, thus, became a passion. She began to get clients from Nollywood. In 2013, she was called to do make up in a movie production and the person who was playing the sub lead character with Nkem Owoh was delisted from the cast. Some other persons also came for the audition. But she was the preferred one. “That was how I got my first role. That was how I veered into acting. I was not desperate to get into acting. I just tried and I got in. I was even reluctant to be before the camera. I wasn’t ready to be popular and lose my freedom. I don’t like getting undue attention when I am going about my daily activities. But I didn’t think I was going to go that far. I kept getting calls to come and take roles. I even got some encouragement from fans. It really brought the attention I didn’t bargain for. I usually go for auditions and that was how I got into Tinsel,’’ she recounted, refuting the misconception that juicy roles can only come through back-door activities. When she’s not acting, she’s minding her make-up business. And she usually sources for good movies to associate her brand with. Her definition of a good movie is one that impacts positively on lives. But there are instances when a role demands nudity and the
end result is a positive message. This reporter put this situation before the actress and she solved it like a riddle. “First of all, this is Nigeria. People don’t see nudity in good light here. This is my market right now. I don’t think I want to do it for now but change is the only thing that is constant,’’ she responded. Itene is currently working on a new project titled “Esohe’’, directed by Charles Uwagbai, starring Hollywood actor, Jimmy-Jean Louis. She has the role of Itohan and the main location for the movie is Benin. Itene is keen at learning more about movie production and telling more African stories that the world is yet to learn. “I think there are a lot of African stories that should be told. We are used to romance stories. Meanwhile there are different cultures and narratives that we need to explore,’’ she said. She looks up to many in the industry, although she is highly inspired by Genevieve Nnaji and Angelina Jolie. “I love their craft. It’s natural. They don’t overdo it. It is like this conversation-normal. That is what I admire about them. And they are also into charity work,’’ she observed. She adores both movie and television series production although with the benefit of hindsight, she’d readily say series is more demanding. “You can be called up for weeks and when you think you are done playing that role, you may be called once more to come and shoot a few scenes. When you are playing that character, you assume that character, you live that character,’’ she remarked. Her current role demands her adding
Itene doing make-up for Mercy Johnson
some weight. In the era of weight loss campaign, this is a huge sacrifice. But she’s poised to do more, such as learning to speak Yoruba to get some roles in other movies. In retrospect, the Isoko-Urhobo actress recalled how working outside Nigeria differs from being at home. “No much difference. It is as demanding as it is in Nigeria. The way they shoot in South Africa is quite different. They give longer break time between the shoot. We can shoot overnight here in Nigeria. We are used to the hard work here. I am not saying that is bad. The
budget is usually a major factor here,’’ she said. Itene would have loved to have her parents at a movie premiere where she is a member of the cast but they died before her career in acting blossomed. Her mother passed in 2010 and her father, 2013. “My mother had always supported me when I took part in cultural dances at school and I think she would have loved the fact that I am acting now,’’ said the actress who had featured in movies such as “The Prodigal”, “Glass House” and “Shattered Mirror’’.
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ARTS & REVIEW\\LITERARY CAFÉ
L-R: Late Amadi, Kukah and Kalango
REMEMBERING ELECHI AMADI, AN OFFICER AND A GENTLEMAN
Koko Kalango
I
n the seventies, when Port Harcourt could rightly have claimed its title of Garden City, my late father, Justice P.O.E. Bassey, would take us to the theatre in the old township of the oil city to watch plays. There, one grew aware of, and enjoyed the city’s rich literary heritage to which writers like Elechi Amadi, Gabriel Okara, Ola Rotimi and Ken Saro-Wiwa had contributed immensely. Their words were enacted on stage by the likes of Barbara Soky, Doye Agama and Comish Ekiye. Over two decades later, when I returned to Port Harcourt, divided between study life, work life and marriage, I wanted to recreate the Port Harcourt I grew up in and that was one of the inspirations behind the ‘Get Nigerian Reading again!’ campaign which the Rainbow Book Club launched from this city in 2005. As we prepared to kick off I went in search of our Port Harcourt writers, to enlist their support and participation. I traced Elechi Amadi to his home town of Aluu, shared the vision with him and invited him as a Guest of honour. He was gracious enough to not just respond but to let me know that he appreciated the work we had embarked on and we could count on his help anytime. This was an invitation I would fully exploit and he would always oblige me. Elechi Amadi was born in Aluu, near Port Harcourt, in 1934. He was a product of the famous Government College Umuahia (GCU) where other renowned Nigerian authors such as Chinua Achebe, Chukwuemeka Ike, Gabriel Okara, Christopher Okigbo, Chike Moma, INC Aniebo and Ken Saro-Wiwa also schooled. In Achebe’s last book, Home and Abroad, he told of how two of their teachers at GCU, Reverend Robert Fisher and W.C. Simpson, introduced and encouraged, respectively, the ‘textbook act’ which was a period between 4 and 6pm daily where all the students had to drop their text books and read fiction books. Achebe and Amadi both agreed that this habit played a
definitive role in the emergence of notable writers amongst the students from Government College Umuahia. Although he studied physics and mathematics, Amadi went on to become a prolific writer, publishing 15 books of various genre; fiction, non-fiction, poetry, play and essays. Amadi, who attended the University College Ibadan, was an intriguing storyteller, whose colourful and detailed descriptions of the village life of his Ikwerre people (the setting of his early books), reflected the beliefs, customs and religions of Africans prior to Western influence. His renowned trilogy, The Concubine, The Great Ponds and The Slave are loved by readers the world over. Even though he had attained global acclaim by the power of his pen, Amadi remained a ‘Port Harcourt boy’. When I interviewed him in 2014 he explained that the city had been the inspiration of much of his writing. He reminisced some of his fondest memories such as the yearly ‘Accra Dance’, described on page 75 of his 4th novel, Enstrangement, when several hundreds of youths, dressed in colourful clothing with frills, wearing masks and brandishing koboko whips danced wildly while the drums beat. His plays Pepper Soup and Dancer of Johannesburg were both based in Port Harcourt. But Amadi also experienced the pain of some of the city’s most trying times such as when he was kidnapped in 2009 and the tragedy of the ‘Aluu 4’ (where four young men were bludgeoned and burnt to death in his home town of Aluu in 2012). Amadi used the platform of the Garden City Literary Festival 2012 to speak out against this hideous act. An officer, he served in the 3rd Marine Commandos of the Nigerian army during the Civil war. This experience formed the content of one his biographical work; Sunset in Biafra. A gentleman, he had the temperament of a diplomat. I recall a time when there was a misunderstanding between the state branch of the Association of Nigerian Authors and the
Rainbow Book Club, I asked him to preside over a meeting of both parties to resolve the knotty issues. His towering moral standing, as well as his dispassionate and objective nature made him the perfect mediator. For over 11 years I have had the privilege of relating personally with Elechi Amadi in the course of the work of the Rainbow Book Club including the ‘Get Nigeria Reading again!’ campaign (since 2005), the Garden City Literary Festival, now the Port Harcourt Book Festival, (since 2008) and the Port Harcourt World Book Capital project (2014/2015). Over the years I have been touched by his simplicity, his deep humanity and his encouragement for education, literature and the general wellbeing of his people. When we were putting in the bid for Port Harcourt to be World Book Capital I informed him and he encouraged us to go ahead. Amadi expressed to a trustee of Rainbow that he had full confidence in Rainbow’s ability to deliver on the World Book Capital project but his only concern was the government. He was speaking prophetically! Today we are proud we had the best of him through Port Harcourt’s tenure as UNESCO World Book Capital 2014. We named each day of the week-long Port Harcourt World Book Capital (PHWBC) opening ceremony after a notable Nigerian writer, kicking off with Elechi Amadi Day on April 22nd 2014. On that day we had Amadi in conversation over his works. The discussion was moderated by Victor Ehikamenor and the panel who interviewed Amadi comprised of two much younger PH authors, Kaine Agary and Ifeanyi Ajeabo, as well as Eghosa Imasuen. In May 2014 when he turned 80, his book, The Great Ponds, was the PHWBC book-of-themonth. As part of the effort to generate discussion over the book and make it popular for public consumption, we had it adapted for stage and performed (by students of the University of Port Harcourt, where Amadi was writer-inresidence). On this occasion he was interviewed
(this time by Daniella Menezor) and the audience of almost 100 literary enthusiasts engaged him in robust interaction. In his honour, the Rainbow Book Club is reading his last book, When God Came, as Book- of –the- Month for July 2016. When we were approached by the organisers of the UK- based Hay Festival to collaborate with them on the ‘Africa 39’ project to commemorate the PHWBC year, we reached out to Elechi Amadi, yet again. The ‘Africa 39’ programme selected and celebrated 39 African writers under the age of 40, and published an anthology of their writing, under this title. We needed 3 judges to whittle down the 243 entries that came from around the continent to a longlist of 120 and the final 39. Elechi Amadi agreed to chair the panel of judges. He was ably assisted by Tess Onwueme and Margaret Busby. I interviewed Elechi Amadi in 2014 for Port Harcourt By the Book, a publication Rainbow put together to commemorate the PHWBC year. My last question to him was ‘At 80 years, what do you know for sure?’ His answer came: “First that Shakespeare was right when he said: All the world is a stage and all the men and women merely players. Secondly, that the most satisfactory life is one spent largely in the service of one’s society. Thirdly, on the accumulation of wealth and material possession, I can declare with certainty in agreement with the preacher that: Vanity of vanities, all is vanity.” Elechi Amadi has served his society, played his part and left the stage of life. His footprints, particularly in the area of the literary arts, would remain a treasure to Rivers State, Nigeria and Africa. He was indeed an officer and a gentleman. Koko Kalango (Mrs.), MON Founder, Rainbow Book Club Project Manager, UNESCO World Book Capital 2014. - Mrs Kalango, a literary activist, writes from Port Harcourt
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CICERO
Editor Vincent Obia Email vincent.obia@thisdaylive.com, SMS: 08054681757
IN THE ARENA
Why FG Should Strongly Protest Against the Killing of a Nigerian Businessman in South Africa The Nigerian government needs to show strong disapproval of the latest extrajudicial killing of its citizen in South Africa, writes Vincent Obia
F
or the past week, the story about the tragic fate of a Nigerian businessman at the hands of some South Africans has dominated reports coming out from that country. Ikejiaku Chinedu, 35, was, allegedly, beaten to death on Tuesday by guards of a private security firm. Secretary of the Limpopo chapter of the Nigeria Union in South Africa, Collins Mgbo, said Chinedu, a native of Ogwa, in Mbaitoli Local Government Area of Imo State, was killed at the outskirts of Polokwane, Limpopo Province, and he was married with three children. “Information available to us showed that guards of the security company chased and arrested him, he was beaten,”Mgbo was reported as saying. “The autopsy result we have showed that there were bruises all over his body, showing that he was beaten to death or suffocated.” The reason for the gruesome act is unclear. What is known is that citizen Chinedu’s murder is another addition to the mountain of savage killings and maiming of fellow Africans, especially Nigerians, for which South Africa has become notorious since the end of apartheid. In this year alone, about 15 Nigerians are said to have died in South Africa under such cruel circumstances. Nigeria needs to show sterner responses to cruelties like the one meted out to Chinedu as a warning to the South African authorities to get serious with measures aimed at curbing the unrelenting xenophobic tendencies among its citizens. About 10 foreigners were killed in April last year in South Africa following almost two weeks of violence that targeted Africans and Asians who came to the country after the white-minority rule, apartheid, ended in 1994. Nigerians are perennial victims of the xenophobia in South Africa. Though no Nigerian was killed in those attacks last year, the Nigerian Union in South Africa said Nigerians lost more than 4.6 million Rand or N84 million during the attacks. In July last year, a Nigerian, Nonso Odo, 30, from Amangwu-Nkwerre, in Imo State, was allegedly tortured to death by South African police officers in Hillbrow, Johannesburg. Curbing such brutish acts should be a priority for Nigeria and South Africa. This is more so in the wake of the growing economic ties between both countries. In 2012, about $3.6 billion was traded between the two countries. There has been a significant growth in South African investments in Nigeria in the last 15 years, according to the Nigeria/South Africa Chamber of Commerce. Chairman of the Nigeria/South Africa Chamber of Commerce, Foluso Phillips, said this was possible “because Nigeria created the opportunity for such engagement and South Africa displayed the capability to make these investments.” About 150 South African business organisations are currently operating in Nigeria, despite the former’s allegedly restrictive policies, which have made it difficult for Nigerians to invest in the country.
P O L I T I CA L N OT E S
The xenophobia in South Africa poses a serious danger to these economic interests. Many fear that the intolerance in South Africa may increase the threat level to the point that it would be hard to control reprisals and hostilities towards its offshore interests. Perhaps, what is not generally known about the hostility to Nigerians on the part of South Africans is that the chauvinistic mind-set is largely in line with popular thinking at both street and official levels. Nigerians are often hated because of their perceived inclination to dominate the social and economic spaces. Such feelings tend to feed resentments against Nigerians and attacks on the flimsiest of pretexts. But what should matter is whether Nigerians are playing by the rule in their host country. Given Nigeria’s huge population and the enormous human and material wealth Mother Nature has endowed the country with, the tendency for the citizens to emigrate and spread their economic tentacles to
other lands should not be surprising to anyone. Hating Nigerians on the flimsy excuse of such natural progress is not only cruel, it also diminishes South Africa. Besides, South Africa is too heavily indebted to Nigeria to allow such inanity to come between its citizens and Nigerians. Recall the huge investments Nigerians had made at individual, group, and governmental levels towards the dismantling of apartheid in South Africa. As a frontline state in the anti-apartheid struggle at the time, Nigeria risked frightening repercussions from the apartheid regime of the Afrikaner-dominated National Party and its Western friends. Nigeria – indeed, Africans – do not deserve the tragic payback they seem to be getting from post-apartheid South Africa. The South African government must act to curtail the excesses its citizens. Nigeria should demand this in the wake of last Tuesday’s murder of Chinedu.
The Continued Relegation of the Nigeria Police
L Inspector General of Police Ibrahim Idris
ast week, parts of Ogun and Lagos states were attacked by militants. The invasion by the alleged pipeline vandals caused widespread panic and desertion of the affected areas by residents. The men of the Nigeria Police battled the armed men but to no avail, until the military intervened to flush out the militants. Director of Defence Information, Brigadier-general Rabe Abubakar, who confirmed the military operation, said it was a “routine operation for the purpose of preventing the vandals and other criminal elements from causing terror in the area.
“The operation, codenamed Operation Awatse, was initiated by the defence headquarters to dominate the area with a view to flushing out all manner of criminals, including militants and saboteurs.” This operation by the military highlights once again the unfortunate position of a Nigeria Police that can hardly contain any security threat, however simple, until the military is called in to lead the way. The situation calls for urgent re-equipment and reorganisation of the police to really perform their function of chief internal security organ.
– Vincent Obia
T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
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Makarfi
Sheriff
Amid Legal Bottleneck, PDP Begins March to Recovery? PDP is trying to reunite following a leadership tussle that has almost torn the party apart, but it faces a legal hurdle and another chairmanship battle whose effect on the erstwhile ruling party remains uncertain. Onyebuchi Ezigbo writes
T
he former ruling party, the Peoples Democratic Party, is trying hard to recover from a self-inflicted leadership crisis it has suffered since the last three months. The party which was almost at the brink of disintegration, but the leaders have suddenly pulled themselves together again to seek ways of cleaning up the mess. Apart from the successes recorded by the reconciliatory engagements with aggrieved party men led by ousted national chairman, Senator Ali Modu Sheriff, the party, through the Board of Trustees, has kick-started moves to woo some of the founding fathers of PDP back to the fold.
Legal Hurdle
But a ruling on Thursday by the Federal High Court, Abuja, seems to have thrown a spanner in the works. Justice Okon Abang, while ruling in a suit filed by the factional chairman of PDP, Sheriff, declared all actions taken by the Senator Ahmed Makarfi-led national caretaker committee since it was installed in Port Harcourt on May 21 as illegal and of no effect. The committee had been set up at the controversial national convention in Port Harcourt following the dissolution of the National Working Committee of the party, which Sheriff headed. Abang ruled, “Parties have an uncompromising duty to obey court order until it is set aside. The Lagos Division made orders on May 12 and 20, forbidding the PDP from removing the Sheriff-led Caretaker Committee. That order is still subsisting. “Having regard to the order of the court, PDP had no lawful authority to hold the convention that led to the emergence of the Makarfi-led Committee. “The convention was unlawfully held and the Caretaker Committee was unlawfully and illegally appointed and could not take any legal decision for the PDP in view of the subsisting order of the Lagos Division of this court. “Consequently, any action taken by the Makarfi-led Committee, including the purported mandate for legal representation in this matter is hereby declared illegal. “If the Makarfi-led Caretaker Committee, as apostles of impunity, missed their way to the Port Harcourt division of this court, that court could not have conveniently assumed jurisdiction to set aside the earlier decision of the Lagos Division. “I hold that the Port Harcourt division of this court cannot make an order to neutralise the potency of the Lagos Division of this court dated 12 and 20 May.” Going by this ruling, it does seem the fresh national convention of the party planned for August 17 in Port Harcourt may not hold, except a superior court gives a contrary judgement.
But a statement on Thursday by spokesman of the Makarfi committee, Dayo Adeyeye, insisted that PDP would go ahead with its convention. Adeyeye stated, “We have just received information that Justice Okon Abang of the federal high court in Abuja has granted an order of interlocutory injunction stopping our scheduled national convention in Port Harcourt, Rivers State, but we want to state that the judgment of the 4th of July, 2016 supersedes any ex-parte order or interlocutory Injunctions. “So, our national convention will hold as scheduled in Port Harcourt, Rivers State.” THISDAY learnt that the ruling by the Federal High Court, Abuja, might serve as a mere bargaining chip for the Sheriff group in the on-going reconciliation effort within PDP.
Soliciting Ciroma’s Support
Last Monday, the BoT made a move to solicit the support of one of the founding members of the party and former central bank governor, Alhaji Adamu Ciroma. As the BoT team led by its chairman, Senator Walid Jibrin, arrived Ciroma’s residence at Wuse 11, all were apprehensive because of the politician’s outspoken nature and his critical disposition to what has been going on within the PDP. But the delegation had apparently gotten assurances of a good reception from Ciroma’s wife, who is also a member of the board. As expected the former Minister of Finance and an elder statesman did not fail to admonish the party for its mistakes of the past. Ciroma went straight to the point and advised the leadership of the PDP to stop lamenting its woes but to try to take advantage of the mistakes of the APC-led administration as it prepares for the next general election in 2019. Apart from urging the party to reorient members to begin to see their role in politics as service to humanity, Ciroma punched holes in the performance of the APC administration, “Today, PDP didn’t lose and APC didn’t win because APC has a lot to do, as when you talk about politics you talk about PDP. When you talk of politics people talk about PDP as if APC does not exist. So far APC is not playing the right role. APC will make a lot of mistakes and PDP must be ready to put things right and all of you must be ready to contribute, participate and to get involved in governance for the interest of ordinary Nigerians.” Those who were on the BoT delegation were former deputy senate presidents, Senator Ibrahim Mantu, Senator Adolphus Wagbara, and former Minister of Information, Jerry Gana, Taminu Turaki and Senator Stella Omu. Ciroma, who withdrew from active politics in PDP before the 2015 general elections due to what he called personal issues, regretted that he had forewarned the party of imminent dangers
ahead but his counsel was not heeded. He stated, “Just before the last elections and when we saw the trend of events, I warned members of the PDP to prepare for whatever eventuality that may come but they did not listen and they lost. Everybody who participates in politics must to do so for a good cause, for economic benefit and political stability of ordinary Nigerians. There will always be more than one party and the beauty of democracy is that everyone who has chance to rule should be given the chance to make his mistakes. “I insist that people must play the rightful role in politics and that role is to promote the interest of the poor masses. Anybody can make a mistake. The beauty of it is that every party that has a chance to rule has the chance to make mistakes.” Jibrin told the gathering that as part of the party’s efforts to ensure cohesion among its leaders and members, they party paid a solidarity visit to the Senate Caucus where it prevailed on its members not to take part in the alleged impeachment moves against President Muhammadu Buahri. According to him, the party considers the issues being raised by the APC over the election of Senator Ike Ekwerenmadu as Deputy Senate President as unwarranted. He cautioned against external interference in the events at the National Assembly, adding that such a move would only serve to over-heat the polity. After the BoT chairman, it was the turn of one of the key leaders of the PDP, former Minister of Information, Jerry Gana, who took to the stage and extolled the qualities and contributions of Ciroma to the formation of the PDP. He pleaded with the elder statesman not to abandon the party but to re-join his political family and help in the march to retake power come 2019. Mantu, in his remarks, said PDP had learnt a hard lesson from its past mistakes, adding, “There is every reason to believe that the party is now ready to chart a new course in order to correct what has gone wrong in the country.” Similarly, Wabara said the party’s leadership was now determined more than ever to chart a new course for the interest of the country’s democracy and its sustainability.
Makarfi’s Ratification
In a boost to the PDP recovery process, the Independent National Electoral Commission on Tuesday ratified the administrative approval granted to the chairman of the PDP National Caretaker Committee, Senator Ahmed Makarfi. The commission said it took the decision based on the judgement of the Federal High Court, Port-Harcourt, explaining that it would henceforth deal with the Makarfi leadership in all activities requiring the participation of political parties. According to its Decision Extract issued on July 14 and signed
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‘TunjiAriyomo: Why I am Vying for Ondo Governorship ‘Tunji Ariyomo, a Harvard and Sheffield trained engineer,is a gubernatorial aspirant on the platform of the All Progressives Congress in Ondo State. He recently spoke to journalists on aspiration and the upcoming governorship election the state. Zacheaus Somorin was there. Excerpt
A
re you not worried about the high number of APC aspirants? No. That aspirants are many in APC is an indication that the party is the most viable platform. Everybody knows that as far as Ondo State is concerned, the PDP is a one-man party. Its guber ticket is in the pocket of its owner. The APC is however a national party. Our leaders have promised free, fair, credible and transparent primary. There can’t be strife in a just society. You have a robust credential. How can you translate this into good governance against the backdrop of several sound technocrats who failed the nation in recent times? If I wasn’t familiar with my own work, I would be as concerned as you are on the capacity of an average technocrat to deliver in typical leadership positions. But I am different. My real life experience confirms that. Today, at the risk of being boastful, as far as utilizing public service opportunity to address the fundamental needs of the people, I appear the most experienced of the lot that have shown interest in the governorship. I have a robust combination of corporate, business and public service experience that is unmatched by the rest. So, yes, we can be wary of just any technocrat coming on board. But I am not just any technocrat. I have actual verifiable history of pioneering several great initiatives in the sunshine state. I trawled the difficult terrain of governance to make things happen even when I did not ultimately call the shot. My people’s mandate will only make things easier because my team already has a clear idea of what we want done. Let us flash back to some of the highpoints of your works as Coordinator of the State Information Technology Development Centre (SITDEC) under the late governor Dr. Olusegun Agagu Thank you. See, there was no SITDEC when
Ariyomo my team came on board. The fact that we birthed that organization, the fact that SITDEC led to the direct creation of hundreds of job opportunities, the fact that by 2008, SITDEC had directly intervened by automating revenue collection activities of the Board of Internal Revenue in Ondo State which led to massive increase worth over N4.7b in revenue within 6 months were sure evidences of my leadership qualities. Outside technology use, some other great things in the state had my hand in them before they came to live. Some were in fact originally ideas in my head which I pushed to my boss the governor or to a committee I belonged to. These include the university in Okitipupa, the agency then known as Accelerated Poverty Alleviation Agency (APAA) now known as Wealth Creation Agency (WECA) and I was part of the foundation team of the state’s Project Pricing and Monitoring Unit in 2003. Only two of us, Mr. Ife Iji and I received the brief of the agency directly from the governor. Within months, PPMU itself saved over N12billion for the government of Ondo State on infrastructure. So we can say that as far as my state is concerned, I have been thoroughly tested. There is none of those
landmark accomplishments I helped brought about in Ondo State that is still not adding immense values today. That university in Okitipupa for instance is employing thousands. SITDEC now renamed SITA still remains the star agency of government. I just told you they all existed first as ideas in my head. I could have done more but for the fact that I was not the chief executive. State leaders like Dr Mimiko, then SSG, will confirm to you that over 10 years ago, at the first leaders of government meeting in 2003, that I was the one that spoke professionally against the adoption of surface dressing by our government while offering clear alternative strategies. I was the one advocating a special delivery strategy to fast-track certain infrastructure projects that could help leapfrog our development. Eminent people like Dr. Olu Agunloye, because he too contributed to the struggle, would confirm to you that I was a major architect of the dual carriageway extensions you see in Akure through rigorous advocacy wanting the dual carriageways that terminated then at Fiwasaye to go further and encircle Akure via Ijapo and the Owo-Ilesha expressway. Our leader, Engr. James Olusoga, now Prime Minister of Akure would tell you that I was pushing for a fly-over across some roads as far back as 2003 and that the extension beyond Ilesha garage would have been the first of such as Engr. Lucas and I then proposed and we received the full backing of Engr. Olusoga himself. So, yes, far younger, but I have been involved enough at the top-most level to learn and to know how to qualitatively deploy power for the benefit of the masses. If you do win the election, what would be your agenda for the state? My team has mapped out the development needs of the state and we have come up with specific initiatives targeted at the primary challenges confronting our people. For instance, one of our priorities if elected is to commence a massive agricultural revolution that would be characterized by street measurable indices of success. A genuine agricultural revolution must directly impart food security. Yet, the prices of rice, garri, beans on the streets remained
either the same or even higher. So, in Ondo State, we shall be affecting existing farmers through activities designed to enhance their productivity and welfare while we shall also stimulate large scale intensive investor-driven mechanized agriculture across the state on lands connecting our towns and villages. Our people will see this revolution. Our people will feel it. Our people will eat it. Our people will be part of it. Ultimately, we will be expanding the agriculture value chain in the state while also encouraging investments in processing and allied services across that value chain. Ours is going to be an agric revolution never before witnessed in West Africa. We want farmers to earn pension. We want to move farming from informal to formal sector. Reading through your manifesto, this informal to formal sector shift is a key issue for artisans I am glad you have gone through my manifesto. Now I am probably the only one in the race that has one at the moment. See, too many of our hardworking people operate outside the mainstream economy. This is a recipe for poverty promotion. So, a key direction articulated in my manifesto is a deliberate implementation of policies that would shift that boundary. For instance, I have made a solemn promise that if elected, within 3 to 6 months, I want every single certificate earned by artisans in Ondo State to be issued by our universities as special Artisanship Diplomas. I am talking about folks learning trades; carpenters, hairdressers, tailors, road-side mechanics and so on. I want these skill-sets well defined by updated policies and weighted. I want those skills well-coordinated. I want the quality of the skills they acquire to improve. I want them to have professional development routes. I want some kind of official linkage between a mason, the guy who learned bricklaying, and the COREN chartered civil engineer especially for the former’s growth. (See concluding part on www.thisdaylive.com)
• Amid Legal Bottleneck, PDP Begins March to Recovery • Continued from Pg. 74 by the director of the commission’s secretariat, Ishiaku A. Gali, INEC said it would recognise the national caretaker’s activities such “as the conduct of primaries of political officers; and the submission of the plaintiff’s list of the candidate for any election to be conducted by the commission.” The commission said it received the name of PDP’s governorship candidate for the Edo State governorship election forwarded to it by the Makarfi-led faction of the PDP, which had earlier secured an order from the Port Harcourt High Court.
Zoning Arrangement
Buoyed by the INEC recognition and the success of its reconciliatory efforts, which saw one of the key elements in the Sheriff camp and a leading member from the South-west, Senator Buruji Kashamu, returning to its fold, the PDP leadership moved to set in motion processes for holding a fresh national convention on August 17. The national caretaker committee went further to set up an 88-member zoning committee headed by the governor of Ebony State, Dave Umahi. The zoning committee has also submitted its report, reaffirming the decision of the party to zone the presidential ticket in the 2019 to the North and the national chairman to the South. However, the zoning committee introduced a novelty into the entire process by declaring the chairmanship post open to all the geopolitical zones in the South. The zoning committee of the PDP headed by Umahi in its report submitted to the national caretaker committee on Tuesday at the party’s temporary office in Abuja, recommended that apart from the presidential candidate and the national chairmanship seat, which were already zoned out, the rest the 21 national offices were to be shared between the North and the South on pro-rata basis. Details of the zoning plan show that the
positions zoned to the North include Deputy National Chairman, National Secretary, National Financial Secretary, National Publicity Secretary, and National Auditor. Other posts also zoned to the North are National Woman Leader, Deputy National Treasurer, Deputy National Organising Secretary, Deputy National Youth Leader, Deputy National Legal Adviser and Deputy National Secretary. Under the zoning arrangement, the PDP zoned National Chairman, Deputy National Chairman ( 1), National Treasurer, National Legal Adviser, National Youth Leader, and National Organising Secretary to the South. Also zoned to the South are Deputy National Publicity Secretary, Deputy National Woman Leader, Deputy National Auditor, and Deputy National Financial Secretary. Umahi explained that in arriving at the zoning arrangement, the committee considered earlier zoning formula in the party since its inception to date, and equally examined previous happenings in the party in respect of restrictions to equal participation of members. According to the Ebonyi State governor, “Consequently, it desired a paradigm shift from the unsatisfactory practices within the party operations and that all positions should be keenly contested for among the major zones they are zoned to in order to open the space and allow for full participation of members. “That the chairmanship of the party be zoned to the southern zones bearing in mind that the presidential ticket of the party for 2019 was zoned to the northern zones as approved by the national convention in Port Harcourt, Rivers State on Saturday, May 21, 2016.” The governor said the committee also made provisions for two positions of Deputy National Chairman, which will be shared between the North and South. According to him, the zoning committee also recommended that the party amends its constitution to make provision for the six National Vice Chairmen to henceforth be
included as members of the National Working Committee.
Chairmanship Tussle
As the stakeholders of PDP prepare for a fresh national convention in Port Harcourt, some prominent members of the party, including the former deputy national chairman, Prince Uche Secondus, and a member of the BoT, Chief Bode George, have been tipped to contest for the chairmanship position. Others interested in the job are the chairman of Daar Communications Plc, Chief Raymond Dokpesi (South-south), Prof. Tunde Adeniran, Jimi Agbaje, and Austin Opara. Secondus has, apparently, been positioning himself to take over as the next national chairman of the party, but his chances are being negatively affected by the perceived unpleasant roles played by the immediate past NWC of which he was a member. That NWC has been blamed for PDP’s poor performance at the 2015 presidential election. This feeling had led many stakeholders of the party, including former ministers and appointees of the Jonathan’s administration, to vehemently oppose the continued stay in office of the last NWC members. But the concerns have not dampened the spirit of the Rivers State-born political tactician who as acting national chairman of the PDP set in motion the process for the on-going reforms and repositioning in the party. It was under his watch that the party set up the post 2015 general election review panel headed by Ekwerenmadu. To his credit, the party not only endorsed the rectified report of the panel but also formally endorsed one of its key recommendations that the next presidential candidate of the party should come from the North. Beyond that, Secondus enjoys the confidence and support of many PDP governors, especially the governor of his home state, Rivers State, Nyesom Wike. Ever since the approval for a fresh national conven-
tion for August 17 was made, Secondus has been working behind the scenes and lobbying stakeholders to ensure that he secures their mandate to occupy the exalted position. Secondus will have to contend with another equally strong aspirant from his zone, the South-south, Dokpesi. Dopkesi has indicated his interest in gunning for the position and has indeed kick-started his campaign with a meeting in his home state of Edo, where he solicited the support of the members. Another stalwart of the party and the former zonal vice chairman for South-west, George, is also in the race. But the apparent lack of unity among the leaders in the South-west, which currently has one of the highest number of aspirants for the chairmanship position, may be a disadvantage for the former military governor of Ondo State. Also in the race for the chairmanship seat is a former Minister of Education, Prof. Tunde Adeniran, who has assured that he will lead the party with integrity if he emerges chairman. Adeniran said he was going to reinvent and reposition PDP. A statement by his campaign manager, Taiwo Akeju, on Monday, quoted Adeniran as urging party members to vote for capable hands during the coming national convention. His statement said, “We believe that the South-west and, indeed, the entire country must come together at this critical period of our national development. Professor Adeniran has been drafted into the race by the leaders of the party and stakeholders across the various zones of the country. “Adeniran possesses the required experience, integrity and immense capacity to lead the party at this critical period.” Many believe the governorship candidate of PDP in Lagos State at the last general election, Agbaje, may be the dark horse in the race. Nigerians can only wait to see how the issues would play out in the main opposition party.
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Segun Adewale: PDP Crisis Would Be Resolved at the August 17 Convention Segun Adewale is the factional chairman of the Peoples Democratic Party in Lagos State. He fielded questions from newsmen on the crisis rocking the party and the path to reconciliation. Segun James was there
P
in Port Harcourt it will be the turn of the South-west.
DP has been factionalised and there seems to be no respite. What is really the problem with the PDP? There have been reconciliation efforts when Dr Ahmed Makarfi and Senator Ali Modu Sheriff met. A new date has been set for another convention, August 17. That is where we are right now. I think we can begin to ask questions if by August 17 the convention does not take place or the rift is not settled. But there was the agreement that the new date for convention is August 17.
Political watchers are worried that PDP that is supposed to act as a check on APC is in crisis. How confident are you that peace and unity would return to PDP soon? I assure you that the crisis will be over immediately we finish our convention next month. We will have our national chairman coming out of the convention and that is all we need. What would then happen to the cases in courts? The moment we have our chairman all we need to do is to go to court and withdraw the cases.
There was also a reconciliation committee set up to resolve the crisis in the South-west, headed by Deputy Senate President Ike Ekweremadu, are you in agreement with the composition of that committee? I have no problem with that because we are just waiting for the leaders to come together so that we can move forward. I can’t be running Lagos chapter of the party without the national. We have to be reporting to somebody, so we are just waiting. How would that resolve the crisis in the Lagos chapter, because now, there are two factional state chairmen? We don’t have any problem with the resolution of the problems here. Sheriff gave us the mandate to go ahead as national chairman of the party. If Sheriff says, okay, there must be another election, there is not going to be any problem. How would you react to the insinuation that those of you in the Sheriff faction are planted by the All Progressives Congress to cause crisis in PDP? If they are saying we are planted in PDP by APC to destroy PDP, that is not only totally wrong but also unfortunate. You should remember that I contested election to the senate on the platform of the PDP. If they say we are planted in the PDP then they should remember that majority
Lagos State Governor Akinwunmi Ambode has set up the state electoral commission that will conduct the local government election. How ready is PDP for the council poll? PDP doesn’t even need to campaign. People are suffering and are dissatisfied with the APC. Lagosians will vote against the APC .What we just need to do is to tidy ourselves up and make sure we put forward the right candidates. There won’t be any problem. Adewale
of the elections won by PDP in 2015 are from my senatorial district. We have about five House of Representatives members and eight Assembly members from that district. That was the first time that the PDP would have anybody in the state assembly. How then do you think what they said is valid? If you are talking of people planted in the PDP, you should be talking about people like Chief Bode George. You should be talking about him not me, because as I am talking to you, his wife is currently a Director in the National Drug Law Enforcement Agency. That is a conflict of interest already. How soon and easy do you think the reconciliation effort in Southwest PDP would be? As soon as we finish our convention
Many believe you have a large followership but you are hindered by your choice of party. Why have you chosen PDP? I will rather be in a party that will not win than join a party that will make me to compromise my integrity just because I want to win an election. It is only in PDP that you can still be and remain yourself. But in the other party, you have to serve the bidding of godfathers. That is the reason why in Lagos you can’t find any assembly member or any House of Representatives member talking anywhere about his plan for the development of the citizens of Lagos State. How would you assess the government of President Muhammadu Buhari in the last one year? It is a minus! It is retrogressive, we are just going backward. Things are getting worse everyday. Is it the price of petrol or the exchange rate of
naira with the dollars we want to talk about? Things are bad. Even elections are inconclusive. If people are blaming the Niger Delta militants for economic sabotage, will you still blame them for the bad conduct of elections too? How best do you think the federal government can approach the resurgent militancy in Niger Delta? They have to negotiate. If former President Umaru Yar’Adua did it, Goodluck Jonathan did it; I don’t see why President Muhammadu Buhari cannot do it so that we can have peace. What can be done to revamp the economy? The government should trim down the cost of governance. They complained that during the Jonathan era there was impunity. Since APC came to power, the president has been doing the same thing we accused Jonathan of. He is still using 12 presidential jets; the ministers are still flying in jets and earning the same salaries. So the government has to reduce the cost of governance. How would you react to the current frictions between the Senate and the Presidency? I think the three arms of the government should be independent. The executive arm should stop interfering in what is going on in the parliament. The judiciary also must be independent. But a situation where they are looking for a way of sending the senate president packing will backfire. They have used various financial institutions to checkmate him, but it didn’t work; now they are talking of the forging of the standing order which is related to the parliament itself. For God’s sake, it is not the job of the executive to be unnecessarily peeping into what the senate is doing. If anybody is aggrieved from the parliament that person should go to court not the executive going to court on behalf of the parliament. I am not supporting any case of forgery but what I am saying is that they should allow the parliament to do its job and there would be peace in our nation.
Adieu, Sir Gilbert Onwuamaegbu Annie Okonkwo
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he journey from the time you became sick until your last breath Sir, Gibert Obiadiwe Onwuamaegbu, Nze Nnanyelugo Oba, was one of mixed emotions. Beautiful and lively most times, painful and uncertain sometimes, but courage and hope all the time. At times, our search for words to interpret the complexity of life is futile. But yours is an easy narrative. You were loved by many, adored by friends and respected by all. In our deep and lengthy relationship, there were three epic encounters that stood above the rest. They are priceless treasures that will forever remain green in my memory. The first happened when I was just twenty three years old, a youth
in a hurry to quicken the transition of adolescence to adulthood. You sowed the life seed of confidence in me, when you gave your princess, Lady Chinyelu, Ugo Agu, to become my peerless jewel as wife, friend and now mother. That has remained my unrivalled testimony. Another was when your love and faith in me brought down standing walls of judgment and uncertainties. Though apolitical, you gave unconditional support to my political expeditions with an uncut native intelligence far smarter than consultants. Needless for emphasis, your compulsive nurture to me in business was a heritage of insights from your rich hindsight. And the most recent Sir, was when we agreed you will live a hundred and fifty years, and set a modern world record on longevity. At 93, you gave it your best shot before succumbing to the immortality of the
Onwuamaegbu But you kept our hopes renewed in a manner that gave courage a new lease.
That way you made it simpler for us to be gallant and pull through despair with victory. We will all miss you painfully no doubt. We will bear our pains with triumph though. We will comfort your wife and our matriarch. We will ensure she bests your record and make you proud. Surely, you were a man of integrity, passion, faith and family. Above all, you were a dedicated son of The Most High God, The Everlasting King upon whose feet you now worship, dance and rejoice. We look up and thank Him really for his many blessings. We thank Him for the man you were. We bless His name for everyone here to celebrate the exit of a great ideas enabler and a solid social energiser. Adieu Nnanyelugo Oba! Adieu My Great Father-in-law! Fare Thee Well to eternal bliss. ––Senator Annie Clement Okonkwo writes from Lagos.
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JULY 31, 2016 • THISDAY, THE SUNDAY NEWSPAPER
PERSPECTIVE
Beyond Tenure Policy: Perspective for Desirable Future Civil Service Tunji Olaopa
I
n an earlier article, I addressed the tenure policy controversy and why I think its current incidence foregrounds the deeper issue of taking the civil service in Nigeria to a point closer to the noble objective of becoming a world class institution. That objective expressed in the National Strategy for Public Service Reform (NSPSR), Nigeria’s defining reform document, is noble because it is only such a world class administrative institution that has the capability readiness to backstop Nigeria’s democracy for developmental purposes. A simple way to put this is to say that the Nigerian development challenge, if the metaphor of an engine-propelled dynamic is applied, requires a Jet engine to carry it to the desired destination. But alas, it is, as-is, propelled by the engine of a Beatle car. And what makes a public service system world class is very simple but profound—it is founded on a change management programme grounded firmly on continuous learning (of what works and what does not work), getting it right and continuing to get it right without ceasing through incremental but sustained improvement, performance management principles, a culture of innovation that puts significant weight on meritocracy, entrepreneurship and professionalism, thus ensuring that the entire machinery of the civil service is primed for the democratic task of service delivery that works efficiently and effectively, and for the people. You might be asking, why aspire to build a world class civil service given the current state of its health as a management system and constraining state capacity? What fuels my optimism is that once again, in our national historical trajectory, we have another occasion where, even if at the level of discourse, there is a unique coincidence between the demands of administration and that of governance. When the Udoji Commission got its mandate to assess the capability readiness of the Nigerian civil service in 1974 at a time when the state occupied the commanding height of the economy, there was already a global imperative that dictates managerialism as the pathway to administrative excellence. The Udoji Report outlines a brilliant blueprint that would have enabled Nigeria to harness its then newly found petrodollar towards the transformation of its governmental responsibility. We unfortunately missed that moment; Udoji thereafter became synonymous with a large influx of money into the Nigerian economy rather than the diffusion of administrative managerialism that could have laid the foundation for the basic management infrastructure for connecting to the managerial culture in administration which, up unto now, we are still struggling to adopt. This is yet another moment when the Buhari change agenda coincides fortuitously with the imperative of change management that involves the capability readiness of the civil service system in Nigeria to confront local, national, regional and global challenges within the context of developmental democracy. The issue at stake at the moment is the removal of the tenure policy that undergirds the career of the Nigerian public servant, pronounced unfortunately without a framework of the change or managerial shift intended making it more of a politically inspired policy than anything else. Henry Ward Beecher, the US cleric, reminds us clearly: “Not that which men do worthily, but that which they do successfully, is what history makes haste to record.” The tenure policy issue presages a larger issue of performance management in the public service. Let me restate the point, that tenure policy has little meaning for the future of the civil service if its significance is consigned to the issue of career progression of officers who have always been Federal officers as distinct from transferees as it succeeded in resolving partially in 2009. So if we should be concerned about the future of the civil service, redeeming the tenure policy is too insignificant in the deep structural issues at the heart of the crisis of the service of the moment.
Olaopa Before attempting to address the deep systemic issues, the first issue to confront is restoring the basics of the civil service which entails basic housekeeping (getting the basics right). In this regard, my doctoral thesis is worth restating regarding a federal workforce composition wherein too many people do nothing, too many do too little and too few do too much. What does that suggest? A few of the endless indicators of service’s crisis state will drive home the point: A situation where, due to budget shortfall and/ or misallocation, major activities of MDAs can’t be funded thus rendering bulk of sections, units and their staff redundant largely, all year round, in what could be understood as a dimension of capacity underutilisation; situation where due to shortage of office accommodation, dozens of senior officers share few available office spaces and have to work out roaster of who come to work on what days with bosses looking elsewhere due to helplessness of the situation; situation where basic entitlements of staff and out-of-pocket expenses incurred on legitimate official assignments get unpaid for years; situation where overseas trips are enjoyed by those in good books of the Ogas and training budgets are spent under labour union-induced militancy for welfare; to name just a few; a reality symptomatic of a collapsed system that works by muddling through, re-cycling of ignorance, consultancies and technical assistance life-support system, and thus waiting for genuine restoration as it is impossible for it to be disbanded and it is reformable. Situation where organisational structures are diagrams and schedules of duties are paper tigers rather than tools of day to day operations. This situation which explains why state governments live only to pay salaries have been like this for a while because, given numerous intervening variables chief of which is adversarial unionism, it calls for bail out by the political class who must be willing to bite the bullet at the nick of time and get into the trench to confront the real issues at the heart of government historical non-performance. This especially, as the culture of speaking truth to power in the civil service has long been replaced by a conspiracy of silence of the administrative leadership over the years having been emasculated to simply survive by existential logic and raison d’être. And of course the Federal Service reality is good practice by any standard when compared with what operates in States, where MDAs operate by logic that respects no notion of what a management system or profession is in theory or in operation. And it is this larger systemic issue as well as those that are critical for Nigeria to achieve national productivity in the face of dwindling national revenue that require successful handling if posterity would be effusive in praising our diligence. But while performance management that tenure policy constitutes a global best practice within public managerial revolution, it requires context specificities within specific public service if we will take on dimensions of reform of a
service that would be pillar of a developmental state. Thus, what does performance management translate to in a reflection on how to make the civil service system in Nigeria a world class institution? How does performance management in the public service instigate national development in Nigeria? The base fact to engage about the civil service in Nigeria is its essentially bureaucratic nature which supports a pathological administrative culture which fosters non-performance. In most cases, the public service, because of its huge operational necessities, usually collapse upon itself. In other words, the complexity of its coordination activities and the implementation of government policies translate into a framework which privileges an input-process business orientation which enfolds the public service within itself while rejecting change and innovation. In Nigeria, like everywhere else, this bureaucratic administrative dynamics cultivates a nepotistic system which combines with ethnic and religious sentiments to produce development-undermining stasis. The credibility of the change agenda in Nigeria therefore depends on a paradigm shift to an entrepreneurial, output-outcome, technologybased, result-oriented system which demands from permanent secretaries, directors and CEOs strict attention to policy deliverables that make development meaningful. At the foundation of the performance management model is the concern about productivity and the citizens as customers with justified expectations about the performance of government. This model is preserved by eight values, namely: openness, confrontation, trust, authenticity, pro-activity, autonomy, collaboration, and experimentation. In my twenty seven years in the public service, what kept me going was the hope that this vision of a new public service would come to fruition. But what hope must overcome is the present administrative predicament in Nigeria and its bureau-pathology. For one and going by reigning standard, the public service becomes a space where an average knowledge worker would have to abandon all forms of investment in self development, skills and competence, and rather hope that an intimate connection to the President, Minister, Governor or Senator is all that is needed to achieve professional height and this is worrisome and crippling for a profession as politicised as the Nigeria’s civil service. On another level, so many are appointed without any discernible competences or competency-based criteria. Thus, when input-process model is welded to bureaupathology, it only then appears that Nigeria is mocking itself in its aspiration of achieving a world class civil service institution that serves as the fulcrum for national development. Within this context, the tenure policy is shorn of all its appeal as an administrative strategy. There certainly would not be such an outcry about the relevance of tenure within a result-outcome model which invests enormous performance responsibility in any tenured career. Beyond the tenure policy issue, the salvation of the civil service in Nigeria really lies with its grafting within a viable institutional framework which generates values, processes and circumscribe excesses. Institutionalisation and reform are simply two sides of the same coin because reform is meant to put in place the required structural changes and modalities that would constitute the fundamental dynamics by which an institution is concretised and established. The tenure policy is just one part of an array of institutional reforms the civil service system requires to effectively synchronise itself with the development objective of the Nigerian state. If I am asked for an immediate commencement point from which this almost overwhelming administrative predicament in Nigeria could be tackled, I will unhesitatingly recommend the imperative of a massive re-professionalisation scheme which works with the modest objective of infusing the civil service system with a modicum of professional pride and the necessity of performance. Re-professionalisation implies a change in the culture of doing things which cannot occur simply by changing regulations, structures, processes and technology.
On the contrary, what is fundamental to it is a transformation of the orientation of public servants through a robust competency-driven, competitive, people-centred rebranding programme. This, as far as I am concerned, is the first condition in the performance management project. It involves, for instance, the need to evolve a new career management system leading to the acquisition of officers with capacities and skills in specialised fields of knowledge. Re-professionalising also involves the process of constant re-skilling as well as the deepening of strategic policy intelligence and action research in service. Re-professionalisation automatically places a burden of responsibility on the gate-keepers of the profession, i.e. the Head of the Civil Service of the Federation, the Federal Civil Service Commission (FCSC) and the Permanent Secretaries/CEOs of Agencies, and their state counterparts, to establish a constantly evolving programme of training and retraining as well as the reform of the recruitment and HR functions in a manner that infuse the civil service with competent blood. Like David Ivor Young, the British politician, humorously noted, “God helps those who train themselves.” The priority thus given to capacity development will be meaningless if there is no fundamental shift in the intellectual base of the managerial corps of the civil service from being, as is, generalists who know little about a lot, to being what Gratton calls being a ‘serial master’, having indepth knowledge and competences in a number of domains. This is the intellectual capital that the service’s new managers then deploy as capacity to lead employees, engage stakeholders, develop, implement and account for programmes and projects, structure system and operations, apply technology, mobilise and manage financial resources and integrate resources and programmes. In this connection, I dare add that the speed at which the civil service is adjusting to the demands of technological literacy is evidently low. This is putting pressure on the service’s ability to develop and access vast amount of data available on the Internet superhighway. Deep-seated reengineering to reflect increasing emphasis on eGovernment, performance-oriented systems and PPPs is therefore a compelling reform necessity. If I am asked for a second most immediate reform point that would invigorate Buhari’s change agenda, I will immediately urge the necessity of a blueprint for the exit of the retiring public servants who have served the nation to the best of their capabilities. For the public service in Nigeria, as well as elsewhere, entry is as significant as exit. Yet, we have failed to outline any detailed programmes that will ease out those who have exhausted their capacities in the service of their country. One of the critical challenges of the civil service today is its uncharacteristic bloatedness. And one reason for this is the loose entry and exit qualifications. Take exit, for instance. It is not enough to say a civil servant should retire after 35 years of service or at 60 years of age. The question which the civil servant asks, and which carries the utmost weight of existential significance, is: What do I do next? If there is no serious answer on the horizon beyond officers’ self preparation, it becomes logical when officers try by crook and means to extend their stay in the service illegally, with serious performance implications. Thus, while the HCSF, FCSC, PS’, CEOs and the States HOS’ and SCSC are concerned with entry requirements, a significant plank of Buhari’s change agenda must be devoted to decreasing the workforce through a creative exit plan that is humane, dignifying and considerate. Such a plan must insert a vigorous employability scheme that enables retiring public servants to acquire new skills that would enable them invest their time and gratuity well in retirement. We cannot afford to use up the time and skills of public servants in their productive years and then dump them when they are made vulnerable by age or redundancy. ––Olaopa is the Executive Vice Chairman, Ibadan School of Government and Public Policy (ISGPP) [tolaopa2003@gmail.com; tolaopa2003@yahoo.com; tolaopa@isgpp.com. ng] (See concluding part on www.thisdaylive.com)
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
PERSPECTIVE
As Amosun Re-engineers Ogun Rotimi Durojaiye
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nly a few will deny that by May 2011, Ogun State was a shadow of the reputation it enjoyed during the second republic. Every infrastructure that gave happiness and good livelihood to the people had collapsed. There was general despondency which ushered in the ‘darkest period’ in the history of the state. Ogun State, for all practical purposes, was, as at then, a classical example of a failed state. That was the sordid and rancid background that ushered in the administration of Senator Ibikunle Amosun on May 29, 2011. It was indeed a very hopeless case. There were heaps of arrears of unpaid salaries, grounded infrastructure and battered education industry and this was in addition to a highly demoralised work-force. The roads were in complete ruin, industries were dead and at the point of burial, the taps were as dry and rusty as excavated pipes. Ogun State was in absolute terms, back to the dark ages. But May 29, 2011 brought a wind of change. The rhythm of the music changed with the advent of the of the Owu born chartered accountant, as Amosun took oath of office as the Executive Governor of Ogun State. It is more than five years now and time has vindicated Amosun’s ability to captain the Gateway State. And now it can be said that like the biblical Moses, he had come on a divine mission to rebuild Ogun State. On assumption of office, Amosun sought to prioritise the attraction of private capital to Ogun State to spur the ‘Mission to Rebuild’ agenda. Ogun State had languished near the bottom of the World Bank Ease of Doing Business index in the 2010 report but was ranked as one of the five most-improved states in the country in 2014 report of the global financial institution. Ogun State has continued to reap maximum benefits from the enabling environment
created for business growth by the Amosun administration. The State is now unarguably the most industrialised in Nigeria. According to the Manufacturers Association of Nigeria (MAN), Ogun State Industrial Zone Ranked 1st in 2014, while new investment into Ogun in 2014 was valued at N514.87 billion, an increase from 2013 investment of N376.57 billion and total Investment stood at N691.77 billion (74%) by the end of 2014. To further consolidate its position as Nigeria’s industrial hub, Governor Amosun recently, (July 19, 2016, to be precise), hosted members of the organized private sector to a breakfast meeting at the Government House, Oke-Igbein, Abeokuta. The breakfast session, which was organised by the Ministry of Commerce and Industry, was well attended by captains of industries, bank executives, industrialists and literally all the major players in the Nigerian economy. Indeed, it was a further confirmation of the place of Ogun State as the industrial headquarters of Nigeria. Speaking during the interactive session, the
Governor thanked members of the organized private sector for their contributions to the growth of Ogun State economy and urged them to do more. Governor Amosun also seized the occasion to highlight the future plans of his administration in the area of infrastructural development, including railways, roads, schools and hospitals among others. The governor also spoke about his administration’s efforts in the area of the provision of adequate security for lives and properties, which he identified as necessary for any meaningful development. The breakfast session was also an opportunity for the governor to get feedback from members of the organized private sector who took turns to commend the administration and seek clarifications where necessary. The Governor who expressed happiness that Ogun State had moved from the 35th position in the state to the first five in the ranking of the best states to do business said this feat was achievable due to the healthy partnership that existed between the government and the private sectors, promised not to rest on his oars in putting more friendly-policies in place for businesses to thrive. “With your support, we’ll improve and better the state’s economy so that other states can learn from and use Ogun State as a case study for growth and development and we would not relent on our part to put in place business-friendly policies”, the Governor disclosed, while calling for stronger collaboration from the investors. Amosun therefore revealed that his administration is committed to transforming the state to a point where Ogun State will practically feed, move, house and even cloth Lagos State to engender economic growth and drive the economy. Governor Amosun also hinted that the state would be launching its “light-up project” by October 1, 2016 and the rail transportation project that will pass through Berger – Kara – Iperu – Sagamu – Odeda – Abeokuta – Ibadan will soon commence, saying these would further open the state up for development.
Jegede’s declaration of interest that Friday afternoon brought a huge relief as comments about his envisaged candidature on the platform of the Peoples Democratic Party suddenly became the most talked about in the state. Notwithstanding the upbeat mood of a majority of the electorate, such expression of interest in the number one seat in Alagbaka, Akure, where the Ondo State Government Office is situated, cannot but attract condemnation, a disposition that could stem out of mischief or ignorance or a combination of both. In other words, opponents, critics and cynics have started crawling out of the woodworks, engaging in acrimonious debates. The accusation against the candidacy of Jegede is that his coming flies against the face of zoning principle. Before Jegede declared his intention to contest the governorship position of Ondo state, it was difficult to guess who the cap truly fits among the legion of aspirants jostling for social media space to sell their aspiration, especially from the All Progressive Congress. Identifying a potential governor among the lot was difficult, mainly because the aspirants have no credential to flaunt other than their ethnic background. Before now, the idea was for an aspirant to declare interest in the gubernatorial race because of the need to represent his area as governor of the state. Hence, those who declared their intention to run rely heavily on the zoning card, but the more they declare their intentions however, the more it became difficult to figure who among the lot possesses the required experience, knowledge, exposure and comportment to move the state forward with the kind of expertise being used by the incumbent Governor, Dr Olusegun Mimiko. Little wonder then, that what looked like an unending search for a competent Mimiko successor ended when Mr Eyitayo Jegede, a detribalised Senior Advocate of Nigeria resigned his position as the Attorney General
and Commissioner for Justice in the state to signify his intention to succeed his boss. Critics would not let go of the zoning mantra, the above notwithstanding. However, Jegede’s supporters would not allow the ethnic argument missile to hit target before intercepting it mid air! In Ondo State, zoning has never been the basis for electing governor . What has benefitted the people has been the competence of the governor and what he can deliver. Olusegun Agagu was from the Southern Senatorial District. Chief Adebayo Adefarati was from the North. After that Agagu and Olusegun Mimiko slogged it out and Mimiko triumphed eventually. What has come clear is that beyond zoning, Mimiko’s performance which overshadowed the others has shown that what the people need is service, visionary leadership, a bridge builder and a governor with depth since, according to the late Chief Obafemi Awolowo, “only the deep can call to the deep.” As it is, Ondo state is one of the states in Nigeria where governors have been emerging on merit as against zoning being practised by some others as it has been argued severally that zoning only promotes mediocrity. Little wonder that the two major political parties in the state , the PDP and APC have distanced themselves from zoning their candidate into any particular ethnic area in the state. Not a few have argued that no state would be able to produce its best with zoning even as it has been randomly mentioned that what Ondo needs now is a governor who will see every ethnic group in the state as his own. This is one quality which many have advanced, made Governor Mimiko excel, and that it is only normal that the trend should continue, hence, the people’s choice in Jegede who also has the reputation of a silent achiever, a philanthropist whose footprints are across the state. In fact, Barrister Jegede fits the role. He is not
Amosun
Some of the frontline personalities who attended the event included Asiwaju Solomon Onafowokan, (Chairman of Chellarams Plc); Mr. Tunde Lemo, (former Deputy Governor, Central Bank of Nigeria); Mr. Folusho Phillips, (Chairman/CEO, Phillips Consulting Management Company); Chief Eric Umeofia, (CEO, Erisco Foods); Dr. Doyin Salami, (a member of the Monetary Policy Committee of the Central Bank of Nigeria); Mr. Segun Ogunsanya, (CEO, Airtel Nigeria); Mr. Segun Oloketuyi,(CEO, Wema Bank); Iyalode Alaba Lawson (foremost industrialist/educationist); Chief Gbolade Osibodu, (Chairman, Vigeo Group and Benin Electricity Distribution Company); Mr. Narendra Chulani, (Managing Director, ENGEE PET Limited); Chief Giwa Bisi Rodipe, (an advocate for private participation in forest conservation and industrialisation), Mr. Ladi Balogun, (Managing Director, FCMB); Mr. Wale Adegbite, (Chairman, Manufacturers Association of Nigeria, Ogun State), and other famous captains of industries. All the participants appreciated the state government’s innovation for organizing the meeting promising to contribute their quota to the development of the state especially, in the area of employment generation for the citizens. While specially thanking the government for creating the enabling environment for their businesses to thrive, the investors appealed to the government to continue to create a platform that would allow for interaction with the private sector to fast rack development in the state. Earlier in his welcome address, the state Commissioner for Commerce and Industry, Otunba Bimbo Ashiru, revealed that the meeting was designed to intimate the investors on the policies and initiatives of government in the face of the economic challenges to see what more could be done to improve the state’s economy. ––Durojaiye is Special Adviser, Information and Strategy, to Governor Amosun (See concluding part on www.thisdaylive.com)
Eyitayo Jegede Answers Mimiko Successor Question
Femi Adepoju
A
s the Ondo State governorship election inches closer, the arena is getting prepared, spectators are, with tip-toe expectancy, ready to throw their caps in the air to cheer, even as the gladiators are shappening their weapons, testing their armours and flexing their muscles. One of the gladiators is Barrister Eyitayo Jegede, a Senior Advocate of Nigeria, who was, until recently, the Attorney General and Justice Commissioner in Ondo State. He resigned his appointment on Friday, July 22, 2016 to pursue his ambition in the November gubernatorial election. That day, Jegede in a statement he personally signed, said his exit was to enable him focus more on his desire “to seek higher office in service of his people which will obviously demand a lot of energy, time and sacrifice.” Apart from thanking his boss, Governor Olusegun Mimiko and the people of Ondo state for the unique opportunity to serve, he noted that his appointment gave him an opportunity to “work in various sub-committees of the State Executive Council and effectively and efficiently represented the interest of the State in various Boards as directed by Mr. Governor.” His declaration penultimate week threw the entire state into a sort of frenzy as wild jubilation broke out across the state from Akure to Owo to Okitipupa. If the jubilation that erupted in Irele in the Southern Senatorial District of the state could be described as spectacular, the mass rally on the street of Akure, the state capital with that of Owo and Ipele in the Northern Senatorial District are better termed ‘wonderful’. There was jubilation all over as the news of
Jegede a stay-at-home-village headmaster politician or an anus-scratching community champion who cannot relate with people across ethnic and sub-ethnic divides. Rather, Jegede is a bridge builder. And this did not come out of a vacuum. He started his law practice in the North. He worked in the law firm of Murtala Aminu & Co. Yola. After a 12-year practice in the law firm, six years of which he was the Head of Chambers, he established his own law firm, Tayo Jegede & Co in 1996. He was heading his law firm of Tayo Jegede & Co in Abuja and Yola before he took appointment as Chief Law Officer in Ondo State. Thus, through his professional practice, he has friends across the country. For instance, he cannot fall into the trap of favouring a particular section of the state above the other as governor because by birth, he belongs to no one but all as he represents more than one of the three Senatorial Districts in the state by virtue of the parents places of birth. One is from the Northern and other from the Central Senatorial Districts. –Adepoju writes from Akure
(See concluding part on www.thisdaylive.com)
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JULY 31, 2016 • THISDAY, THE SUNDAY NEWSPAPER
PERSPECTIVE
N’Assembly : Still a Misunderstood Institution?
Yusuph Olaniyonu
L
ast week, after the National Assembly adjourned to commence its annual recess in compliance with the provision of Section 60 of the Constitution, Mr. Femi Falana, a Senior Advocate, issued a statement published in the newspapers in which he called on the Accountant General of the Federation to deduct the payment for the period in which the federal legislators did not sit at plenary from their salaries. Mr. Falana is a respected lawyer and public commentator whose views I hold seriously. In the statement, without providing empirical evidence or giving us figures, he claimed that the Senators and House of Representatives members have not fulfilled the requirements of Section 63 of the constitution which requires them to “sit for a period of not less than one hundred and eighty-one days in a year”. Well, Mr. Falana is a man who always gives out all facts to substantiate his position. So, I had expected him to give figures as to how many days the National Assembly actually sat and by how many days they were short of the constitutional requirement so that we can know how many days pay the Accountant General will deduct. When I did not see these details in the statement, I knew something was wrong. That was unlike the human rights activist/lawyer. My deduction is that the statement by Falana is just another instance of how many Nigerians commented on the activities, events around and issues in the National Assembly just for the sake of knocking the federal legislature. The lawmakers have become the black sheep, Guinean pigs or the whipping boys for those who are not happy with the going-on in the country. This may be because the legislature is the one that has stayed the least in our administrative structure since independence. Between then and now, the legislature has only existed for about half of the time the two other arms - executive and judiciaryhave been with us. To be precise, we have had full legislature for 28 out of 56 years of post-independence Nigeria. Thus, the legislature is the least known and least familiar to the people. With this situation, many Nigerians are still not conversant with the rules, procedure and process governing the operations of the institution. In any case, it is easy to criticise the National Assembly with 469 elected members than the executive where only two people enjoy the people’s mandate while others hold offices at the
Saraki discretion of just one man. Also, since 1999, the executive arm has consciously and unconsciously contributed to creating a bad image for the law making institution, as part of the design to weaken and control it. That is why it is gradually becoming part of the democratic culture being promoted now, even by the media, that the Presidency must have a say in the emergence of the leadership of the National Assembly and that its leadership must always be seen to be in the good book of the executive. And some of the commentaries about the National Assembly fall into the different categories of those who do not believe nothing good can come from there, those who are eager to blame all the evils in Nigeria on the Assembly, the outrightly mischievous ones and those who simply comment out of ignorance. Mr. Falana must belong to the first category. To address some of the issues arising from the lawyer’s position. Section 60 of the constitution which states that “Subject to the provision of this constitution, the Senate and House of Representatives shall have the powers to regulate its own procedure for summoning and recess of the House”, allows the National Assembly to go on vacation just like every individual engaged in any type of work. It should also be noted that the National Assembly works through different fora. The sitting of all the members in plenary is just one of them and that is the forum that is suspended when the
Legislature goes on recess. Members of the National Assembly during recess continue to sit and work through committees. See Section 62 (1, 2, 3, and 4) of the constitution. They work through visiting the locus in quo in exercise of their duties under Section 88 of the constitution. More importantly, they work through constituency engagements which is recognised by the constitution and other laws as a key duty of the legislators. All these other duties other than sitting as the committee of the whole in plenary usually go on undisturbed during the recess period. That is why expert commentators on the legislature agree that more legislative work are done in the committees than at plenary. In other words, most of the work on bills are done at committee stage. Same are oversight and consideration of public petitions by the committee so assigned the work. That is why despite the Senate being on recess, members of its committee met for several hours between last Tuesday and Thursday to hold confirmation hearing for over 40 ambassadorial nominees of President Muhammadu Buhari. Also, Senate President, Dr. Abubakar Bukola Saraki, has been resuming in the office since Monday to attend to foreign dignitaries, heads of institutions and bodies seeking to engage with the Senate about their activities and about laws that can have positive impact on Nigerians. Therefore, apart from law making, the constitutional responsibility of Senators and Representatives include investigation or what is called oversight functions, advocacy, approval of executive appointments and relating with the constituents. A great aspect of these responsibilities take place outside the plenary. Today, the committees in the Senate are striving to meet the deadline given to them by the Senate President that all pending reports from various committee assignments or investigation must be ready for consideration after the recess. Also, many lawmakers utilise this period to hold various consultative and empowerment sessions for their people. An example of this latter use of the recess period was the July 23 event to announce scholarship awards and youth empowerment programme held in Ikeagwu, Enugu State by Deputy Senate President, Ike Ekweremadu. It is therefore wrong to think that once the federal legislature is on recess, members simply shut off, go to sleep and wake up to collect salaries and allowances. Members of the National Assembly represent Nigerians and if we continue denigrating the Legislature, it can only translate to undermining the nation’s democracy. ––Olaniyonu is Special Adviser (Media) to Senate President.
Ekweremadu and Hypocrisy of APC Leaders Ismail Omipidan
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igerians have always known that some Nigerian politicians are hypocrites. What most Nigerians did not, however, envisage is that hypocrisy in politics would be elevated to a ridiculous level, the way it is being witnessed today, under the All Progressives Congress, APC-led administration. Although, there are several instances that lay credence to the above assertion, nothing exposes the party’s stalwarts’ hypocrisy, like its public display of anger on the emergence of Senator Ike Ekweremadu, as the Deputy President of the Senate, only on the basis of him not being a member of the ruling party. Historically speaking, apart from 2003, and perhaps 2011, the Peoples Democratic Party, PDP, which was the ruling party from 1999 to 2015, had never on its own produced the Senate leadership. In 1999 for instance, then President Olusegun Obasanjo preferred Senator Evan (s) Enwerem of blessed memory, while his deputy, then Vice President Atiku Abubakar, preferred Senator Chuba Wilberforce Okadigbo, also of blessed memory. In the end, Obasanjo shifted the inauguration of the 4th National Assembly by a few days, mobilized all Alliance for Democracy, AD, Senators, led by Senator Mojisoluwa Akinfewa, for Enwerem, and with the support of some PDP Senators, Okadigbo, who was highly rated to beat Enwerem, was shockingly defeated. The rest is history. Again, in 2007, after the PDP met and endorsed Senator David Mark, as its preferred candidate, the North-Central zone, with the support of chief Tony Anenih, met and decided to challenge the position. In all, the group lined up three candidates to slug it out with Mark on the floor of the Senate. In a well played out script, as allegedly dictated by Chief Tony Anenih (Daboh later confirmed the allegation in his petition to President Umaru Musa Yar’Adua), once nomination for the election was opened, Senators George Akume, Nuhu Aliyu
and Gbemisola Saraki were all nominated one after the other, in that order, after Mark’s nomination. As soon as the nominations were brought to a close, Senator Aliyu urged the then Clerk of the National Assembly, Nasir Ibrahim Arab, who presided over the session to interpret the Rule of the Senate regarding issue of ranking, vis-à-vis Senate leadership position, which ordinarily should have disqualified Akume from contesting the position, since he was coming to the Senate for the first time. But the Clerk simply said “we will not go into that, we have passed that stage and since there is no room for debate, we will not talk about that. The vote will be by simple majority.” Meaning that, you will not by the Rules of the 5th Senate, disqualify Akume from vying as a fresh Senator for the presidency of the 6th Senate! As soon as the Clerk concluded his remark, Senator Aliyu again got up to say “in that case, I am withdrawing my nomination, I will support Akume.” His action was greeted with applause from virtually all those who belonged to the same camp with him and Akume. Again the Clerk said “if you’re withdrawing from the race, say so and do so without saying I support so, so and so.” He had hardly concluded his remark, when Senator Gbemisola Saraki too stood up to say she was equally withdrawing from the race. In the end, all the Senators from Niger, Edo, Kwara and the remaining two from Benue, including all the former governors of Jigawa, Kebbi, Zamfara, Yobe and Kaduna, were among the Senators that voted against Mark, in support of Akume. But in the end, Mark, with the support of some opposition Senators, went ahead to floor Akume by 68 to 39 votes. I covered these events of the 5thSenate as Sun Newspaper’s Senate Correspondent; as such I was a live witness to all that transpired before and during the election on the floor of the Senate. The only difference between what happened in the past and what played out, in the last Senate inauguration, was the fact that the President, Muhammad Buhari, refused to show open
sympathy and preference, for any of the candidates for the position. However, some party leaders did take sides, with former Lagos Governor and a national leader of the APC, Senator Bola Ahmed Tinubu, backing the Lawan/Akume ticket openly. And, many say he did that not necessarily because he believes the ticket was the best per se, in the circumstances the nation finds itself, but largely to make the emergence of another Yoruba and Lagosian, Hon. Femi Gbajabiamila, as the Speaker of the House of Representatives, seamless. Interestingly, in 2011, the then Action Congress of Nigeria, ACN, backed Honourable Waziri Tambuwal, against the zoning arrangement of the PDP, to make him emerge as Speaker. Truth is, if the party had had the foresight then, it could as well, had produced Tambuwal’s Deputy, because the party had the capacity, to so do. If it failed to think outside the box then, why should it blame the PDP for its political foresight and sagacity, which saw it producing the Deputy President of the Senate now? Today, it is convenient for some of the chieftains of the party to ask Ekweremadu to resign or orchestrate his political trial simply because he is the Deputy President of the Nigerian Senate, under the ruling APC. But when Tambuwal defected (from the PDP) to the APC, under the then ruling PDP, all the notable leaders of the party, including Lai Mohammed who was the National Publicity Secretary of the APC, stated clearly that there was nowhere in the constitution where it was stated that the Speaker (of the House of Representatives) must be produced by the majority party and that bi-partisan NASS leadership was good for the nation and showed that our democracy was growing. Even Honourable Femi Gbajabiamila, then Minority Leader and now Majority Leader of the House, defended this same position, at the slightest opportunity, saying it was constitutional in synch with presidential democracy. The question Nigerians should ask these hypocrites is what has now changed? The constitution has not been rewritten; and it is very clear that, it says” Senators shall elect the Senate President and the Deputy Senate President from amongst themselves.”
Thank God the first female Speaker, produced by Oyo State House of Assembly, Senator Monsurat Jumoke Sunmonu is now in the Senate, she knows about this kind of working arrangement better. At the inauguration of the seventh House in 2011, under the first tenure of Governor Abiola Ajimobi, the 32-Member Assembly had 13 ACN members, 12 PDP and 7 Accord members respectively. But Mrs. Sunmonu emerged Speaker, and the PDP, which should ordinarily have produced her deputy, was sidelined. Instead, the party went into an alliance with the Accord Party, and the arrangement saw the Accord Party producing David Olaniyan, representing Ibadan North 1 constituency, as the Deputy Speaker, ahead of the PDP, which was next to the ruling party then, in terms of numerical strength. Because it favours the hypocrites, they say it was democracy in action. Heavens did not fall. So, why should the heavens collapse now? Even if we have forgotten the events of 2011, what about what happened in Benue and Plateau States respectively, in this current APCled administration? At inauguration, the Plateau State House of Assembly had 24 members with PDP having a slight majority of 13 members. However, APC produced the Speaker. Yet, they say, it was democracy in action. The Benue case was no different. PDP had the majority in the 30-Member House, yet APC produced Speaker. Chief Oyegun was happy, it happened. But he is bitter that a PDP Senator emerged Deputy President of the Senate, in an APC-led Senate. From the forgoing, it is clear that it is either some Nigerians do not read about the past, or deliberately ignore the facts of history. But as we navigate through the current APC-led government, Nigerians especially, those of the APC extraction must check their conscience and speak the truth at all times, even if it hurts. As Othman Dan Fodio said, conscience is an open wound and only truth could heal it. Indeed, only truth can help grow our democracy to the envy of the international community. Omipidan is a Special Assistant (Media) to the Deputy President of the Senate and can be reached on smileomi@yahoo.com
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PERSPECTIVE
W.F Kumuyi: The Missing Link in National Development Banji Ojewale
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here is a small but vocal circle of Nigerians who do not believe that their country needs more of the quickening touch of the Divine to help turn things around for the prostrate land. They look all over the place and spotting what they see as a sea of churches, they conclude that Nigeria would be better off without a ‘surfeit’ of ecclesiastical industry. They refer to patently disturbing reports of abominable conduct in the Church and return the verdict that the trouble with Nigeria isn’t its politics or economy; it is the Church which encourages a craving for materialist prosperity. They argue that the Church and its leaders no longer aim at addressing the soul as their Lord Jesus Christ taught. Today, they say, the Church is master at pandering to carnal needs. So they want less of sacerdotal activity and more of agnostic enterprise. Well, this contrasts with the position of a famous French historian and writer as he also studied the role of the Church in the United States of America when that country was struggling with the challenges that came after a war. The famous French writer Alexis de Tocqueville visited the United States of America in the first half of the 19th century and returned with reports of how great America had become not too long after it had emerged from its war of independence and passed through the teething problems of nation-building. His extensive tour led him to probe the source of this eminence. When Tocqueville had undertaken an arduous search, he wrote: “I sought for the greatness of the United States in her commodious harbours, her ample rivers, her fertile fields and boundless forests and it was not there. I sought for it in her rich higher learning and it was not there. I looked for it in her democratic congress and her matchless constitution and it was not there. Not until I went to the Churches of America did I understand the secret of her genius and power,” Tocqueville attributed the prosperity of the nascent American State to the fact that its leaders instituted a national policy
Kumuyi that encouraged the Churches of the day to pray to God on behalf of “kings and… all that are in authority”, as enjoined in the Holy Bible (1 Tim. 2:2). As far as he was concerned it was obedience to that Divine order coupled with diligent work that brought down God’s blessings both on the American people and on the land. Indeed, the concluding part of the text we quoted says such intercessions will lead to “a quiet and peaceable life” adding, “This is good and acceptable in the sight of God” (verse 3). Pastor William Folorunsho Kumuyi, founder and General Superintendent of the Deeper Christian Life Ministry (DCLM), is in the same class as Tocqueville. He believes that the absence of Jesus Christ in the citizen’s life in Nigeria is responsible for the problems assaulting us, the same way that lack is the source of all of the world’s problems at the moment. The point, he argues, is not to have less of Jesus’ message of tolerance, righteousness, Biblical holiness, love for fellow man (even if he is your enemy), abstemious lifestyle, focus on Heaven, etc. Outlawing Jesus amounts to outlawing peace and order. Man’s duty is to admit Him and allow Him full reign.
Kumuyi has maintained a diligent outworking of this faith in the power of the Gospel to change the fortunes of society if sincerely embraced. He has embarked on a back-breaking crusade nationwide. It has taken the Deeper Life Bible Church leader to far-flung areas, including such so called no-go states as Plateau, Bauchi, Adamawa and Gombe. He was in those places only last week even in the midst of deadly outbursts of violence. The locomotive of the Gospel message is not expected to halt on account of challenges if you are to be true to your calling as a child of God waving the Flag of the Great Commission: “Go ye therefore, and teach all nations, baptising them in the name of the Father, and of the Son, and of the Holy Ghost: Teaching them to observe all things whatsoever I have commanded you: and lo I am with you alway, even unto the end of the world Amen.” (Matthew 28:19,20). The Gospel is especially needed now in Nigeria where we are confronted with a myriad of economic and political issues along with numerous security concerns in the form of armed robberies, kidnapping, communal violence, urban unrest, ethnic upheavals and centrifugal clamouring. The position of many is that the genuine acceptance of the Gospel of Jesus Christ with its emphasis on holiness and heavenly focus, and not on worldly materialism, would naturally abolish the spirit that creates the template for destructive traits and anti-social conduct. There is a driving force behind such attitudes that can only be tamed and defeated by the infinitely greater Christ Spirit. This is the missing link in our system, according to Pastor Kumuyi. On Friday August 5, the Deeper Life Bible Church leader will be teaching this at a crusade in Abeokuta, capital of Ogun State, where the Church’s State Overseer, Pastor Dele Rosilu, will be playing host to Kumuyi at a one-day crusade with the theme, TURNAROUND 2016. It is Rosilu’s first as the State Pastor and it promises to bring forth the reward of days and nights he and his team have put in to make the event a glorious outing. And speaking about having something to show for the crusades, Pastor Kumuyi
says God is designing them to effect deep changes not only in the life of the individual but also to transform the society. He says: “We want you to believe in God, that He can conquer any challenge; that is the most significant aspect of our crusade… to remind the people that no matter how bad it may be for individuals, state and nation, God can still turn things around and can move things forward.” Nigerians must not because of some failed clerics and their ministries run a cynic’s script on the Church of Christ. Nor must we pooh-pooh the Gospel as impotent. There are still a faithful few loyal to the creed of holiness as displayed in the Early Church in the First Century after Christ’s departure. This is the reason thousands still troop out to listen to Kumuyi’s message of salvation. They get saved by God after true contrition. They get purged of sinful inclination, leading them to abandon anti-God habits like prostitution, armed robbery, pipeline vandalism, stealing of government funds, promiscuity, exam malpractices, kidnapping, sharp practices, conjugal infidelity, Epicurean lifestyle, etc. They are offered hope that when they are through with life here on earth, their saved souls are assured of celestial abode with God for eternity. But it is tormenting life on the other side for the Christless soul. If this is seriously preached by more Christian leaders whose conduct would reflect this both in public and in private, we wouldn’t have the despondent and broken down society we are saddled with now. Still, God hasn’t abandoned the country called Nigeria. He still uses His Church and the humble and committed servants to organise programmes where He performs miracles of salvation, healing and deliverance. Pastor Kumuyi’s appearance in Ogun State at this time is propitious. He is coming with the power of God to pray against the spirit that has lately spawned an array of unwholesome acts, such as the case of a so-called man of God who chained his nine-year old child and subjected him to barbaric depravity for allegedly stealing. –– Ojewale is a journalist and writer at Ota, Ogun State.
Ikpeazu: Humility and the Making of Political ‘Rockstars’
Ojo Maduekwe
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n Nigeria, it seems to excite the governed when the political space is opportune to have a politician with humility. Reason is that Nigeria is one country where a lowly council chairman, when accorded the bigman status, becomes proud, to the disdain of the people he was elected to serve. This is why former President Goodluck Jonathan’s shoeless narrative during the 2011 campaign garnered such mass appeal, and one way the Abia State Governor, Okezie Ikpeazu, has managed to maintain a good public image since assuming office on May 29 last year But if Jonathan’s rise in his political career and his largely accommodating disposition towards critics of his administration helped us to better understand the importance of humility in public service, his docility in the face of the Boko Haram crisis and widespread corruption among officials of his government was the flipside to the benefits of humility in a public official. A public servant should be firm and generally an embodiment of various character traits aside humility, since that alone does not provide the masses with the basic amenities needed to enjoy a better life. Since Justice Okon Abang delivered judgement in the tax forgery suit instituted by Mr Uche Ogah against the Abia State
first citizen, I have been following and studying the public’s (made up of the learned and laymen) opinion on the ruling. For those with a good knowledge of the workings of jurisprudence, such as Barrister Ebun-Olu Adegboruwa, the ruling is “totally unacceptable”. Others who are not fascinated by how the law works have chosen to dwell on the less technical issue of Ogah’s personality, which many believe reeks of desperation. They wonder why he had been eager to be sworn in “immediately” as governor even when the law allowed for a 21-day window for Ikpeazu to appeal the judgement. With their reaction to Ogah’s handling of Abang’s ruling, the masses that have sometimes been described as gullible have shown here that they have a mind of their own. Now, despite having highlighted the reaction of people towards Ogah’s perceived desperation and the unacceptability of the judgement by a greater number of Nigerians, a judgement that many believe won’t stand appeal even if Abang were to again preside over the case at that level, I have chosen to ponder on how this ‘trial’, is capable of moulding Ikpeazu into a rock-solid political heavyweight. When you walk on the corridors of power littered with selfish scheming, you’ll encounter the refining potent of political struggles (which comes second only to spiritual persecution) and its power to
Ikpeazu mould one faster than any other challenge known to man. The perception of Ikpeazu is that of a humble, meek governor, but when Ogah’s trial completes the refining cycle, this simple-at-heart politician is expected to be moulded into solid rock. Call it the baptism of fire, these political trials, rather than knock him down, just
might ensure that Ikpeazu stands firm. There have been many politicians whom when faced with stiff opposition, embraced the challenge, surmounted the hurdles placed before them and went on to become great statesmen. If Ikpeazu handles this episode of his political career well, as is expected of everyman made of noble stock, he will secure for himself a comfortable place in Nigeria’s political history. I would say I welcome these trials because, in the end they should transform Ikpeazu from simply being a humble politician into one of the finest political leaders to have come out of eastern Nigeria in recent years. Then if he does not lose his humility along the way – which I honestly doubt will happen – it is this character of his that will help keep his arms open to welcome back these ‘brothers’ who attempted but have so far failed in their bid to replace him as governor. One can only hope that these trials, although having the ability to distract, would in the end usher in an era of robust and healthy political debate and most importantly, impact on governance in Abia State. According to public opinion, regardless of these trials, Ikpeazu has kept his eyes on the prize and continues to render good governance. –– Maduekwe is editor at Discussing Africa. Follow him on Twitter @ Ojo_Maduekwe
T H I S D AY SUNDAY JULY 31, 2016
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GAVEL TO GAVEL As Jibrin Abdulmumin’s Budget Padding Allegation Throws up Fresh Debate
Edited by Vincent Obia Email vincent.obia@thisdaylive.com
The faceoff in the House of Representatives between erstwhile allies, Speaker Yakubu Dogara and Hon. Jibrin Abdulmumin, shows no sign of abating, as it has thrown up a fresh debate as to whether the anti-graft agencies should investigate the allegations of budget padding or it should be left for the House to handle. Already, a petition has been sent to the anti-graft agencies while the State Security Service also stepped in at the weekend. Damilola Oyedele writes
Dogara
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he trouble started penultimate week, when Speaker Yakubu Dogara announced the removal of the chairman of the Committee on Appropriation, Hon. JibrinAbdulmumin. Dogara had been under pressure to change Abdulmumin following allegations that he unilaterally padded the 2016 budget by allocating N4.1 billion to his Kiru/Bebeji federal constituency in Kano State. In making the announcement at plenary, Dogara noted that while Abdulmumin had tendered his resignation, the decision had already been reached to remove him. That statement probably shattered what would have been a truce, as Abdulmumin had since launched a media onslaught against the Speaker and three other principal officers: Deputy Speaker Yussuff Sulaimon Lasun, Chief Whip Alhassan Ado Doguwa, and Minority Leader Leo Ogor. Counter-allegation Abdulmumin’s frequent statements and tweets presented damning allegations of fraud through budget padding against those he termed the quartet. But the House, on behalf of the Speaker, has also revealed weighty accusations of the fraud and abuse in Abdulmumin’s handling of the 2016 budget, which culminated in his removal. Abdulmumin had thrown the first punch, when he alleged that his faceoff with the Speaker and the principal officers was as a result of his refusal to cover up their fraudulent actions, and to be silent over the allocation of wasteful projects worth N20 billion to their constituencies. “My inability to admit into the budget almost N30 billion personal requests from Mr. Speaker and the three other principal officers also became an issue,” Abdulmumin said. In the days that followed, he raised several accusations, which included that the speaker diverted a federal
Abdulmumin
government water project to his farm, and blackmailed a construction company to work on his Asokoro plot. Abdulmumin is, however, yet to name the construction company. The Speaker, through the chairman of the Committee on Media and Publicity, Hon. Namdas Abdulrazak, also presented damning accusations againstAbdulmumin, accusing him of blackmail, abuse of the budgetary process and fraudulent insertions in the budget. Abdulrazak added that the embattled lawmaker had a high tendency to blackmail colleagues and high government officials, as well as misuse and mishandle sensitive government information. He was also accused by Abdulmumin of trying to curry favour from President Muhammadu Buhari by inserting funds for Muhammadu Buhari Film Village in his (Abdulmumin’s) constituency in Kano State and the citing of numerous projects in Daura without the consent or solicitation of the president. This, Abdulrazak said, was an attempt to blackmail the president and allow for the allocation of N4.1 billion to his Kiru/Bebeji federal constituency. The Speaker has since gone a step further with a threat to sue Abdulmumim, if he does not retract the claims of fraud. Abdulmumin however dismissed the threat and described it as a ploy to stop the House from hearing the matter, since according to the House rules, a matter in court cannot be heard. Abdulmumin has also not shown any sign that he would back down. At the weekend, he released several tweets threatening to disclose other details to buttress the allegations he made against the speaker and other key officers of the House. One of the tweets reads: “I will share with you the contents of my petition to the EFCC and ICPC in due course & shall return more
shocking revelations…” He noted that this was a defining moment in the struggle to cleanse the House and the first time a member would drag 12 of his colleagues to anti-graft agencies. Apart from the speaker, deputy speaker, whip and minority whip, others listed in his petition to the EFCC and ICPC, according to him, include Chairman House Committee on Interior, Hon. Jagaba Adams; Chairman House
Following the weighty allegations, Security Operatives on Saturday, sealed off the secretariat of the Appropriation Committee in the House and Abdulmumin’s office, a move believed to be aimed at preserving evidence. A hint to that effect was first given by Abdulmumin in a tweet where he stated that:“On the request of my lawyers, the security agencies have promptly provided protection for the appropriation secretariat, my office and house
Services Committee, Hon. Babanle Ila; Chairman Committee on Power, Hon. Dan Asuquo; Chairman Committee on Marine Transport, Hon. Mohammed Bago; Chairman Committee on Police, Hon. Haliru Jika; Chairman Committee on FCT, Hon. Herma Hembe; Chairman Committee on Higher Education, Hon. Zakari Mohammed; and Chairman Committee on Health, Hon. Chike Okafor. Abdumumin said the case against them ranges from corrupt enrichment, abuse of office and public trust, living above means and massive movement of funds in budget. In another tweet, the lawmaker said: “I am confident that the EFCC and ICPC will effect the arrest of Speaker Dogara and the 11 others to commence prosecution in earnest.” Insinuating that the speaker was using his office for personal gains, Abdulmumin in yet another tweet said: “Speaker Dogara has resorted to blame of so-called external forces, are those forces responsible for moving FG projects to his farm?” Security Operatives Seal off Secretariat Following the weighty allegations, Security operatives on Saturday, sealed off the secretariat of the Appropriation Committee in the House and Abdulmumin’s office, a move believed to be aimed at preserving evidence. A hint to that effect was first given by Abdulmumin in a tweet where he stated that: “On the request of my lawyers, the security agencies have promptly provided protection for the appropriation secretariat, my office and house.” Fresh Divisions The budget padding matter has thrown up fresh divisions among the lawmakers, in a chamber just recovering from the bitter rift between two groups, Consolidation group and Loyalists group. The factions had emerged during
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GAVEL TO GAVEL/THE LAWMAKER
In Curious Turnover of Leaders, Edo Assembly Elects Another Speaker In a bid to balance the political tripod in the state, Speaker of Edo State House of Assembly, Elizabeth Ativie, resigned her position, paving way for the emergence of another speaker. Adibe Emenyonu, in Benin City, reports
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leven weeks after impeaching its speaker and replacing him with a female speaker, Elizabeth Ativie, who represents Uhunmwode constituency, another speaker was last Monday sworn in by the Edo State House of Assembly. He is Justine Okonoboh, who represents Igueben state constituency. Before his emergence, Okonoboh was the deputy speaker of the Assembly, making his elevation a mere change of baton, more so as Ativie was made the deputy speaker. Ativie was on May 3 elected as the speaker after Victor Edoro (Esan Central) was impeached over alleged impropriety and high handedness. The motion for the new change of leadership was first moved by the Majority Leader, Folly Ogedengbe (Owan East), and was seconded by Chris Okaigben (Oredo East) under matters of urgent public importance. Moving the motion, Ogedengbe explained that the change was necessary to ensure fairness in the political equation so that the three senatorial districts in the state will be represented in the power sharing formula. But to achieve this, the house rules 1 (2), 20, 22 and 73 were relaxed before the majority leader asked Ativie to step down for the lawmaker from Igueben, a first timer, to assume the post of speaker, while she took oath of office as deputy speaker with other positions remaining intact. Speaking further, Ogedengbe said: “I am going to move that there is a change of leadership in the house in order that this state move forward so that there will be fairness and equity in the system. That the three senatorial districts will be properly accommodated. I am going to move with a heavy heart. “I move, therefore, that the Speaker of the Edo State House of Assembly, Mr.s Elizabeth Ativie, should step down and assume office as deputy speaker of the Edo State House of Assembly and that that the deputy speaker, Dr. Justin Okonoboh, be promoted as the new Speaker.” The motion was supported by the member representing Oredo East constituency, Chris Okaeben. It was gathered that the cooperative manner with which Ativie accepted the change was an indication that what took place was a mere rehearsal of a well written script. In her acceptance speech, Ativie said her stay in office as speaker recorded tre-
Okonoboh
mendous achievements as the members worked as a team. She commended her colleagues for giving her the opportunity to serve and urged them to accord similar cooperation to her successor. According to her, “Although this is a huge and difficult sacrifice to make, I believe that it should be done for the sake of the people of Edo State. No sacrifice will be too big to pay in meeting the yearning and aspiration of our people who elected us to this House. “Today, I lower my pride and my ambition for the general good of the people and the state through which I emerged as a legislator.” On his part, the newly elected Speaker, Dr. Justin Okonoboh, described his emergence as a result of wide consultations within the All Progressives Congress family in the state. He noted that the new development was a family matter devoid
Ativie
of any interference from the governor, and commended his predecessor for her willingness to step down in a manner unprecedented in the country. He assured that all the appointments made by Ativie would not be changed as a mark of respect for her. Ativie’s step down was also said to have been agreed by the ruling APC leadership following the emergence of Godwin Obaseki from Edo South senatorial district as governorship candidate and Philip Shaibu from Edo North as his running mate. It would be recalled that when the Speaker of Esan extraction, Victor Edoror (Esan Central state constituency) was impeached on May 3, he was replaced by Ativie (Uhunmwonde state constituency) from Edo South. Against this backdrop, the people of Edo Central cried out, accusing Governor Adams Oshiomhole of marginalising the area.
As Jibrin Abdulmumin’s Budget Padding Allegation Throws up Fresh Debate the tussle for the leadership of the House after its inauguration. A group, called Transparency group, have apparently thrown their weight behind Abdulmumin and called on the Economic and Financial Crimes Commission and the Independent Corrupt Practices and other related Offences Commission to investigate the Speaker and the principal officers fingered by the Abdulmumin. The Gombe State caucus in the House, on its part, said the matter was an internal affair of the House and could be handled by the Ethics and Privileges Committee, whose mandate includes issues such as this. The caucus also accused Abdulmumin of blackmailing his colleagues with letters he had sent to them requesting inputs for constituency projects they wanted included in the 2016 budget. The leader of the caucus, Hon. Ali Isa, at a briefing said, “If we are to talk about this ‘budget padding’ scandal, we want to tell
the whole world that shortly after Hon. Jibrin was appointed chairman of the Appropriation Committee he sent letters to all members of the House of Representatives requesting them to send details of projects they want captured in the federal budget for their constituencies, and honourable members complied with his circular accordingly. “But we are shocked and surprised that Hon. Abdulmumin Jibrin is now using these same letters to blackmail the House as guilty of padding the federal budget! What a shame!” More Calls for Probe Former President Olusegun Obasanjo has weighed in into the issue. Obasanjo had sometime last year made public a letter in which he accused the National Assembly of corruption. The former president said the latest development had justified his position. He called for a probe into the allegations of budget padding.
However, after the APC primaries on June 18, which was won by Obaseki from Edo South senatorial district, and the eventual nomination of a running mate, Phillip Shaibu from Edo North senatorial district, APC leaders in the state, sensing the danger posed ahead of the September 10 governorship election, met with Oshiomhole and resolved to return the speakership to Edo Central senatorial district. It was also gathered that when Oshiomhole, the APC lawmakers, and leadership of the party met, it was resolved that the impeached Speaker Edoror must not return hence, the choice of Okonoboh. With the latest arrangement, the three senatorial districts have been carried along in the scheme of things in the state, said Anselm Ojezua, Edo State APC chairman, who is from the same zone as Okonoboh.
Cont’d from Pg. 82
A civil society group, Socio-Economic Rights andAccountability Project has also sent an appeal to the United Nations through the Special Rapporteur on Extreme Poverty and Human Rights, Prof. Phillip Alston, to request the leadership of the House to explain the alleged deliberate padding of the 2016 budget with N481 billion. The group also wants explanations into allegations of “removal of critical projects and replacement of such projects with constituency projects, which have not only undermined the fight against corruption in the country, but also exacerbated extreme poverty and violations of internally recognised human rights.” SERAP, in the letter dated July 27, 2016, also expressed concern about what it called the lack of transparency and accountability in the National Assembly, which is not consistent with the behaviour of an institution that is constitutionally mandated to make laws for the peace, order and good governance of the country.
Unfolding Development Some crucial issues have been raided again, one of which is the constitutionality of constituency projects, which has been defended in some quarters as a way of ensuring equitable distribution of critical infrastructure. Some have, however, described it as a conduit pipe for lawmakers to siphon public funds. The development has also raised questions about the conditions that encourage budget padding. Several lawmakers insist that the constitution empowers the legislature to make additions, subtractions and deletions in the budget estimates presented by the executive. Others, however, say inclusion of self-serving projects in the budget amounts to budget padding. The face-off looks set to worsen in the coming days, and Nigerians will be following the developments with keen interest.
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NEWSXTRA
COURTESY OF PEAK L-R: Managing Director, FrieslandCampina WAMCO, Mr. Rahul Colaco; Governor of Kaduna State, Mallam
Nasir El Rufai, and Corporate Affairs Director, FrieslandCampina WAMCO, Ore Famurewa, during the company’s courtesy visit to the Governor in Kaduna...recently
SCHOLARSHIP SUPPORT L-R: Member representing Udi/Ezeagu Federal Constituency, Hon. Denis Amadi; Member representing Aninri/Awgu/Oji-river, Hon. Toby Okechukwu; Chairman/Founder, Ikeoha Foundation, Senator Ike Ekweremadu; Executive-Director, Ikeoha Foundation, Mrs. Cindy Ezeugwu, and Governor of Enugu State, Rt. Hon. Ifeanyi Ugwuanyi, at the unveiling of the 2015/2016 Ikeoha Scholarship and Bursary Award at Ezeagu, Enugu...recently
Buratai Vows to Restore Peace in N’East, as UN Resumes Humanitarian Service • Troops ambush Boko Haram in Borno state Senator Iroegbu, Paul Obi and Kasim Sumaina in Abuja
Following recent upsurge in attacks by Boko Haram terrorists, the Chief of Army Staff (CoAS), Lt-Gen. Tukur Buratai, has assured stakeholders that the military will restore full peace to the North-east as directed by President Muhammadu Buhari. This is coming as the United Nations (UN) and partner agencies, have resumed humanitarian services in the troubled region after it was temporarily suspended as a result of last week’s Boko Haram ambush in Borno State that injured two soldiers and three of their staff members. Buratai gave the assurance yesterday while addressing troops undergoing training at the Nigerian Army Special Forces Training School at Buni Yadi, headquarters of the 27 Task Force Brigade of the Nigerian Army in Yobe State. The Army Chief, in a report
by News Agency of Nigeria (NAN), charged the troops to sustain the momentum of ongoing counterterrorism insurgency operations to flush out the insurgents. He said: ‘Operation Lafia Dole’ has entered a critical stage. You must sustain the momentum; there is no going back. There is no time to waste. We want full restoration of peace in the North East. That is what the president wants.” Buratai later told newsmen that he was in Buni Yadi to see how the troops undergoing the Special Forces training were faring. He explained that the exercise was to make the personnel resilient and be able to withstand challenges they might face in the course of the ongoing operations. The Army chief also explained that the school was relocated from Niger state to Buni Yadi in view of the strategic location of the town in the fight against the Boko Haram insurgents. “We know the importance of
this place - Buni Yadi. This is the route they (insurgents) passed through to other parts of the North-east and even Plateau in the North-central. It is better for us to have dominated and taken over the place”, he said, and assured the troops of their welfare and logistics need, including required equipment to prosecute the war. Meanwhile, UNICEF has announced continuation of first aid services to the North-east despite attack on humanitarian convoy in the zone. The UNICEF, in a statement yesterday, said it “continues to provide assistance to millions of conflict-affected children in north-east Nigeria, despite yesterday’s attack on a humanitarian convoy”. “As a result of the attack, in which one UNICEF staff member was injured, travel by UN staff to high risk areas has been temporarily suspended,” it stated. The UNICEF Nigeria
Representative, Mr. Jean Gough stressed that the global agency staff members “are working at full strength in the Borno state capital Maiduguri. “We continue to call for increased efforts to reach people in desperate need across the state. We cannot let this heartless attack divert any of us from reaching the more than two million people who are in dire need of immediate humanitarian assistance,” Gough said. He has also called on donors and humanitarian organisations to scale-up the response to the emerging disaster in Borno state, which is the most affected by the conflict with Boko Haram. He noted that before the attack, security conditions had been improving in several areas. “Our teams were finding people living on the brink of disaster. The violence has disrupted farming and markets, destroyed food stocks, and damaged or destroyed health and water facilities. We absolutely have to reach more of these communities,” Gough stated.
Fashola: Nigeria in Recession Due to 5 Years of Profligate Fiscal Policy Chineme Okafor in Abuja
The Minister of Power, Works and Housing, Mr. Babatunde Fashola has said Nigeria’s current slide into an economic recession was not the making of President Muhammadu Buhari’s administration, but as a result of five years of reckless fiscal policy, from 2010 to 2015. Fashola said yesterday in London that the government within that period prepared budgets that were inadequate and unable to expand Nigeria’s deficient infrastructure. He also said the budget even with its inadequacies, concentrated larger funds on recurrent expenditure and less on capital projects. He stated these when he spoke at a forum organised by the Nigeria Infrastructure Advisory Facility (NIAF) at the headquarters of Adam Smith International in London, the United Kingdom. The minister however gave assurances that the government of Buhari knew what was wrong and how to solve it. He noted that the government has designed
proper solutions which include fiscal stimulus and capital spending to reposition the economy of the country and get it out of recession. He said for three years contractors in his ministry were owed monies for jobs given to them, adding that these were seeds of recession planted and nurtured by the government that ran the affairs of Nigeria between 2013 and 2014. “Today, we face challenging economic times. The commodities boom is gone. We have suffered consecutive negative growth and are economically experiencing a recession. “The reason is simple. It is not what the Buhari administration has done, it is a result of the profligate fiscal policy between 2010 and 2015, when we not only under-budgeted (N4 trillion) in the face of deficient infrastructure, we also compounded it by providing 15 per cent for capital expenditure, which was under-funded and 85 per cent for recurrent, which we adequately funded,” said Fashola.
He said if the country had made good choices with its past fiscal policy, especially expanding her infrastructure base, it perhaps would not have gotten into economic recession. According to him: “If infrastructure drives growth as we have experienced from the great depression to the Marshall plan, and lately fiscal stimulus in recent years, our current economic recession is the result of yesterday’s policies and choices especially during 2010- 2015. “Sometime in March 2015, a little over a year ago, before the Buhari government, a snap survey of four construction companies which I constructed revealed that they had laid off 5,150 workers because government was not paying these construction companies for work done. “Since my assumption of office, in the ministry of power, works and housing, meetings with contractors in power, works and housing reveal that contractors have been owed 2 to 3 years. These are the seeds of recession, planted and nurtured between
2013 and 2014. “The Buhari government knows the cause, and has designed the proper solution: fiscal stimulus and capital spending,” he added. The minister stated that the country will recover from the recession and Buhari’s government will deliver new infrastructure and upgrade aging ones. He equally explained that the government’s budget has increased from an average of N4 trillion to an ambitious N6 trillion with a 30 per cent allocation to capital expenditure. Fashola said the budget has since its passage also responded to the needs of the country with 70 construction companies who are owed monies getting paid N63.169 billion for quarter one (Q1) in the works sector alone. “The response is that in the last few weeks since budget was passed, construction companies that had demobilised from their sites and laid off workers due to lack of payment since 2014, are re-mobilising to rail, road, power and other construction sites, and re-calling workers.
How Marketers Sell Aviation Fuel as Kerosene to Rake in Extra Profits Chinedu Eze
Marketers now rake in extra millions of Naira selling aviation fuel as kerosene, making extra N50.00 per litre and this explains the scarcity of the former, forcing airlines to cancel, delay flights and sell tickets at exorbitant fares, THISDAY has gathered. Aviation fuel is sold about N198 to N200 in Lagos while kerosene is sold from between N200 to N300 per litre. THISDAY investigations reveal that marketers prefer to sell aviation fuel, known as Jet A1 as kerosene after degrading it because the price of kerosene is higher than that of aviation fuel due to the scarcity of the product, which is obviously on higher demand, and there is no inherent risk in using aviation fuel for domestic cooking. This is because aviation fuel is highly refined kerosene with zero sulphur, which when used for cooking leaves the pot without any soot and instead of importing kerosene, the marketers import aviation fuel because almost all the modern refineries in the world do not
refine kerosene, as the product is no more in high demand in many parts of the world. But the refineries in Nigeria, which were built from the 1960s and 1980s still have sections that refine kerosene and unlike other refineries in other parts of the world, the Nigerian refineries have not been upgraded to refine only diesel, petrol and Jet A1. A seasoned aeronautical engineer and pilot who operates non-scheduled airline told THISDAY yesterday that the current scarcity of aviation fuel would persist until the federal government imports kerosene. The source told THISDAY that every jet engine can use kerosene, but Jet A1 is of higher quality because it has no sulphur. “Nigerian airlines will not have adequate supply of Jet A1 as long as kerosene is scarce and sells at higher price than aviation fuel. “So the solution to the current scarcity is for government to import massive volume of kerosene, which is a product demanded by ordinary Nigerians.”
We’re Focused on Good Governance, Despite Challenges, Says Wike Anayo Okolie
Rivers State Governor Nyesom Wike said yesterday in Port Harcourt that his administration had surmounted multifarious political and economic challenges to deliver on his promises to the people. Wike spoke when he hosted a breakfast meeting with members of the National Executive Council of the Nigerian Guild of Editors, led by its president, Mrs. Funke Egbemode. The officials of the Guild were in the state as part of preparations for its Annual National Conference, which holds in Port Harcourt from August 3 to August 7. Wike said he had remained focused on the delivery of worthy pro-people projects aimed at improving the lives of the people. He stressed, however, that the state would have attained greater mileage in development if it were not made to face endless rerun
elections and security challenges, some of which he said were politically-induced. “It is important for everyone to know that Rivers State is safe and is witnessing massive development. In the next two months, we are hosting many national events. We have already hosted several national events in the last two months,” Wike stated. He added, “For me as governor, this is a privilege to serve my people and I will give it my best shot. I am ready to lay down my life for the state. My commitment to the development of Rivers State is total. I will forever defend it.” On the rerun legislative elections in the state, which the Independent National Electoral Commission recently postponed, Wike warned that anyone planning to rig the polls will be disappointed because the people were vigilant and ready to resist any malpractices.
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Edited by Demola Ojo Email demola.ojo@thisdaylive.com
Rio 2016: Russia Planning Legal Action over Olympic Ban
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ussia plans to take legal action over this month’s WADA report accusing the country of running a state-sponsored sports doping program. The accusations made in a World Anti-Doping Agency-commissioned report by Canadian lawyer Richard McLaren have led to more than 100 Russian athletes being barred from the Rio de Janeiro Olympic Games which start on Friday. “We will analyse each line and proceed legally against it,” Russian sports minister Vitaly Mutko said yesterday on Russian sports television channel Match TV. Mutko has vehemently denied the accusations but McLaren has said he has unwavering confidence in his findings, which include evidence of the Russian secret service the FSB being involved in covering up failed doping tests. WADA called on all Russians, set to compete at the Rio Games, to be banned but the International Olympic Committee stopped short of a blanket suspension and left it up to individual sports bodies to decide. The International Weightlifting Federation (IWF) is the latest to act, banning all Russian weightlifters last Friday from participating in the Games. The IWF said on its website that the multiple documented cases of doping among Russian weightlifters was shocking and disappointing and had damaged the integrity of the sport. It said the eight positions reserved for Russians
About 70 Russian athletes arrived in Rio recently for the Olympics but the lineup of eligible competitors remaimms unknown
had been offered to other weightlifters. Most other sports federations have banned Russians with previous doping convictions and those named in
US Basketball Team Set to Showcase Skills against Nigeria
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igeria’s national basketball team is set to take on the USA Men’s National Team tomorrow as part of the USABasketball Showcase. Kwesé Free Sports, which is part of Econet Media’s Kwesé-branded platforms, has signed an agreement with the Nigerian Television Authority (NTA Network Service) to broadcast the game live at 01:00am Nigerian time (02:00 CAT). This means that anyone with a television will be able to tune in and watch the game anywhere in Nigeria for free. The official game can also be streamed live on the Kwesé Sports website and it will also be streamed via the Kwesé Sports Facebook page. “We are excited to be able to bring Nigerian fans all the action live from Houston. Our business is founded on the principle of giving African sports fans access to exclusive and premium sports content. Through this agreement with NTA, more fans will be able to engage with their
national team and have access to live content from USA Basketball,” says Joe Hundah, CEO of Econet Media. According to NTA, this is a particularly important sports broadcast event for Nigeria. “This is a first for Nigerian basketball and for Nigerian TV. It is important because fans from all over the country will be able to view this live international game on NTA. Thanks must go to Econet Media and Kwesé Free Sports for choosing NTAas their broadcast partner for this game. I have no doubt that fans will be watching to support the national side and we are glad that we can bring the game to them in the most accessible way possible,” adds Abdulrahman ibn Mohammed, General Manager for Sports at NTA. This is the latest exciting development following Econet and the NBA in April announcing a multiyear partnership to provide the most expansive NBAcoverage ever across sub-Saharan Africa beginning within the 2016-17 NBAseason.
McLaren’s report but have permitted those seen as clean to go to Rio. A separate doping report last year led to the entire Russian-based track and field
Eriksson: Ibrahimovic-Mourinho Combo Enough To Win Premier League
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ormerManchesterCitymanagerSvenGoran Eriksson’s fancies Manchester United’s chances of winning the Premier League with Zlatan Ibrahimovic and Jose Mourinho together again. Ibrahimovic - 35 in October - swapped French champions Paris Saint-Germain for United as a free agent at the start of July, reuniting with former Inter boss Mourinho. Eriksson - now coaching Shanghai SIPG in the Chinese Super League - hopes the former Barcelona, Inter, AC Milan and Juventus striker can add the Premier League to his LaLiga, Serie A and Ligue 1 titles. “I’m not surprised he went to United,” Eriksson told Omnisport when asked about
Atletico Sign Gameiro from Sevilla
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tletico Madrid have signed French forward Kevin Gameiro from fellow La Liga side Sevilla for an undisclosed fee, reported to be about £28m. The 29-year-old has signed a four-year-deal. Gameiro scored 29 goals in all competitions last season, but was not selected in France’s Euro 2016 squad. He joined Sevilla from Paris St-Germain in 2013, helping the Spanish side to three successive Europa League titles.
Gameiro
team being barred from Rio. Banned athletes plan to sue the authorities after the Olympics are over on August 21, Mutko added.
Mourinho and Ibrahimovic
Ibrahimovic’s decision to move to England at the age of 34. “Mourinho has the reputation, similar to Zlatan, that when they go to a new club they normally win in the championship in the first year. So why not? Mourinho and Zlatan it could be enough to win the Premier League. “It would be great for both of them, especially for Zlatan. That would be something incredible, if he could also add that to his other titles.” United face Everton in Wayne Rooney’s testimonial on August 3, before taking on Premier League champions Leicester City in the Community Shield four days later. Ibrahimovic and Co. kick-off their Premier League season against Bournemouth on August 13.
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T H I S D AY, T H E S U N D AY N E W S PA P E R • JULY 31, 2016
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iss Oluwakemi Olonishuwa was penultimate weekend joined in holy matrimony with Mr. Stephen Ojinika at Living Faith Church, Lokongoma, Abuja. The families of the newly-weds hosted friends, associates and well-wishers at the grand plaza, Sun City, Abuja. Photographs by Enock Reuben
L-R: Mrs Yemisi Olonishuwa (Bride’s mother) and Mrs. Ojinika (Groom’s Mother)
The couple Stephen Ojinika and his wife Oluwakemi
L-R: Dr. Ronke Bello and Managing Director, THISDAY Newspaper, Mr. Eniola Bello
L-R: Chairman, MDS Technologies, Mr. Oladele Oyelola; Mr. Richard Olonishuwa (Bride’s father) and Gen. Funsho Owonibi (rtd) L-R: Arch. Salman Idris and Member, House of Representative, Hon. Sunday Karimi
L-R: Chief Jide Omokore, GM Aso Savings and Loan Plc, Mr. Richard Bello and Mr. Donald Ojinika
R-L: Former member, House of Representatives, Hon. Duro Meseko and his wife, Nike
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THISDAY, THE SATURDAY NEWSPAPER • JULY 31, 2016
EVENT
L-R: Prince Olushola Akanmode and his wife, Yemisi
L-R: Senator Dino Menaye, and Mr. Funsho Obamo
L-R: Honourable and Mrs. T. J. Faniyi
L-R: Malam Saidu Jalo and Malam Faruq Haliru
L-R: Ms. Salifa Mohammed and Mrs. Sella Mohammed
L-R: Chief S. K. Adedoyin and his wife, Grace
L-R: Deacon Oladipupo and Chief Tunde Olusunle
L-R: Former Managing Director, Daily Trust Newspaper, Mr. Isiaq Ajibola and Mr. Tunde Ajiniran
L-R: Staff of Assets Management Corporation of Nigeria (AMCON)
L-R: The couple with General Abdulahi Mohammed family
Sunday July 31, 2016
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Bakare to Nigerians
“It is therefore inconsistent with the interest of the North or the South for the current pseudo-federal structure to persist. If the elders of the North are true elders in this generation, I charge them with the words of the wisest king who ever lived: Do not remove the ancient landmark which your fathers have set.” – Pastor Tunde Bakare speaking at the 50-year memorial of a former Military Governor of a defunct Western Region, Lt. Col. Adekunle Fajuyi
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Four We Need an Economic War Room And Other Things...
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he worst kept secret before the 2015 elections was that Nigeria’s economy was heading for a rough weather. Following a sharp drop in oil price, the 2015 budget was based on a benchmark of $65 per barrel, compared to $77.50 for 2014. Oil was selling for $115 in June 2014, but was down to $58 on December 17, 2014 when Dr. Ngozi Okonjo-Iweala, then finance minister, presented President Goodluck Jonathan’s last budget to the National Assembly. Despite the prevailing price of $58, we still fixed the benchmark at $65 — on the expectation that oil would rise to between $65 and $70 in 2015. In medical language, that budget was brought in dead (BID). Indeed, late 2014 when the exchange rate was still N155/$1, it was predicted that the naira would exchange for over N200/$1 in 2015. Domestic and external debts were over $40 billion. The bills for on-going and uncompleted projects were over $50 billion. With lower oil prices, reserves had gone down from a little over $34 billion in December 2014 to $28.6 billion in May 2015 when Jonathan handed over to President Muhammadu Buhari. In fact, Okonjo-Iweala revealed that the federal government had to take loans to pay workers for April and May 2015. There was no better indication of deep trouble ahead. That’s what happens when your life depends on oil rents. The real catastrophe of the 2015 electioneering was that we never really debated issues. There was plenty to discuss on economic policy, falling oil prices, pressure on FX reserves, the fate of the naira, fuel subsidy, power sector and unemployment. Instead of discussing ideas, PDP and APC were busy swapping insults. PDP was severely disadvantaged anyway, having been in power for 16 years and produced a mismatch of resources and results. What promises could it make again? Who would listen? Meanwhile, APC, mouthing “change”, seized the stage and promised Nigerians heaven on earth: free this, free that. The only thing they didn’t promise was free jollof rice. In an article I wrote on December 21, 2014, titled “May We Now Discuss the Issues, Please?” I expressed worries about the vagueness of the campaigns. I wrote: “I am one of those Nigerians who cannot be easily moved by political slogans. I love the music of ‘change’ as rendered by the APC, but talk is cheap. What we need to know now is the content of this ‘change’. Jonathan has said we should move ‘forward’ not ‘backward’. Whatever! Let Buhari and Jonathan come out and tell us to our face what they want to do about the Nigerian condition.” For some reason, Nigerians seemed to be more excited by gutter fight. And they got it in abundance. In his widely circulated article, “Buhari vs. Jonathan: Beyond the Election”, published on January 27, 2015, Prof. Charles Soludo, former CBN governor, did warn that whoever won the presidential election would face a mountain of economic problems, caused partly by declining oil prices. He wrote: “The tragedy of the current electioneering campaigns is that both parties are missing the golden opportunity to sensitise the citizenry about the enormous challenges ahead and hence mobilize them for the inevitable
Emefiele sacrifices they would be called upon to make soon.” Soludo got a fair dose of abuse for his effort. But after the assault, his prediction is here with us. With the economy suffocating Nigerians, what now? In my last article, “Where do we go from here?” I traced our current economic challenges to the state of affairs inherited by President Buhari, compounded by his own ideological hangover. I said recovery would be slow and painful and there would be no easy answers. I also posed three questions: One, how do we first stabilise the economy and stop this bleeding? Two, where is the recovery roadmap so that the average Nigerian can hope for light at the end of the tunnel? Three, how do we ensure that if there is another oil boom, we will utilise it intelligently and escape from the “petropathetic” syndrome? CBN Governor, Mr. Godwin Emefiele, has been carrying the can for the economic wreckage since Buhari came to power. We all know that monetary policy, which he oversees, cannot on its own address the historical structural defects in the economy. Monetary policy can be more urgently implemented and immediately visible in exchange and interest rates, but can it lead to economic growth on its own? Can it improve trade on its own? Can it industrialise Nigeria on its own? Can it create jobs on its own? In the absence of a cabinet and important policy instruments to complement monetary policy, local and foreign investors despaired. With the naira sleepwalking to the gulag, Emefiele started throwing everything but the kitchen sink at the forex market. But it would appear the more he did, the more the naira was determined to slide into the bottomless pit. Although the capital controls, the restriction of forex sale to 41 items, the restriction on the use of naira cards abroad and the dollar swap deals with the banks have combined to keep our reserves within reasonable range to maintain our access to international trade, we remain desperately in the woods. It’s like a vehicle on a long journey without enough fuel. It will stop breathing at some point. The naira started devaluing itself without waiting for anybody. Debate went on for long over whether or not
the CBN should officially devalue the naira. For 16 months, Emefiele — with the full backing of Buhari — resisted the pressure. Apparently, there was this hope that oil would miraculously recover to ease the forex crisis. It did recover at some point, but the Niger Delta Avengers made sure we did not reap the benefit. Forex inflow, which averaged $3.4 billion per month in previous years, kept nose-diving. In 2016, it has been undulating between $500 million and $400 million per month! There is no way the massive shortfall will not destroy the naira in an import-dependent country. Boxed into a corner, the CBN finally introduced a “flexible” exchange rate to attract foreign capital. Now we cannot even recognise the naira anymore. From the official rate of N197/$1, it is going for N311 at the interbank market. Everything has gone haywire. The foreign investors we tried to attract by “floating” the naira are yet to board the plane, and we’re beginning to wonder if they are aware we still exist. Many economists say we are paying the price of delayed adjustment — which I agree with to a large extent — but, let’s be honest, monthly forex inflow cannot drop from $3.4 billion to $400 million without crippling consequences on the naira. What next? We need to renew confidence in the economy. Last week, I proposed that Buhari should draw up a roadmap with timelines and milestones on his recovery plan. This will create a sense of urgency and direction. I have listened to Vice-President Yemi Osinbajo, Mr. Udoma Udo Udoma, minister of budget and national planning, and Kemi Adeosun, finance minister, articulate plans to broaden the economy, eliminate inefficiencies, reduce waste and block leakages. These, to me, are good but not suited for the problems at hand. The economy is in A&E. What we need urgently is an emergency recovery plan. It doesn’t stop long-term planning, in any case. That is why I am now thinking Buhari actually needs an economic war room, made up of experts from outside the government who would regularly advise him and his economic team on the way out of this crisis. It shouldn’t be party-based. Buhari needs the best talents he can get from anywhere, and he shouldn’t go for the usual suspects. The “group think” in Aso Rock needs to be subjected to some modulation from the outside. He should get competent advisers and pull them into the war room. This bleeding must stop. We are in a war situation, economically, and the president must look outside his immediate circle for ideas. During the global economic crisis in 20082009, Mr. Barack Obama, on winning the US presidential election, appointed an economic recovery advisory board in spite of the White House structures. The board reported regularly to him and his economic team. It was chaired by former Federal Reserve chairman, Paul Volcker, with members drawn from business, labour and academia. Obama said he wanted to “pierce the insularity” of Washington decision-making processes. The American economy did not start recovering until his third year in office, but at least Americans knew he had a clear-cut recovery plan. Buhari should consider a similar support system.
HOUSE OF WAR Pardon my gloating, but I am always excited when members of the Nigerian political elite enclave take on each other and let us into their dirty secrets. I am enjoying every second of the on-going public drama between Hon. Abdulmumin Jibrin, the former chairman of the house appropriations committee, and Speaker Yakubu Dogara. I’m inclined to believe everything I’m hearing about the budget padding and the pillaging. Unfortunately, because it is an “in-house” matter (pardon the pun), we are never going to get to the bottom of this. Nevertheless, I want to keep hearing the salacious details of what our leaders do with our money. More! FILM FURY I wept after reading Malam Jafar Jafar’s take on the scrapping of the proposed N3 billion Kano Films Village because of protests by clerics. The 20-hectare village, modelled after Indian and Chinese film centres, was to have a cinematography centre, a 400-capacity auditorium for training, a three-star hotel and a shopping mall, among others. In the view of the clerics, this is an invitation to sin, and an attempt to fast-track the end of the world. In the view of President Muhammadu Buhari, the clerics are right. So he has cancelled the project. I hereby advise the Plateau state government to lobby Buhari to relocate the “sin city” to Jos. Hell! TRAIN OF THOUGHT As President Muhammadu Buhari launched the Kaduna-Abuja rail on Tuesday, my heart glowed. The project was conceived by President Olusegun Obasanjo. President Goodluck Jonathan did the bulk of the work. Buhari completed it. Thank God it was not discarded. APC, characteristically, does not want to give any credit to Jonathan because of the narrative that he achieved nothing in five years. Does it matter — as long as the rail will make life better for millions of Nigerians, irrespective of tongue, religion and party affiliation? The Yoruba would say a woman spotted a snake and a man killed it, and so what? Progress! TEENS TALK Celebrated columnist and bestselling author, Mr. Olusegun Adeniyi, is not a deacon for nothing. He is working seriously to justify his “anointing”. He is co-ordinating the Teens Conference holding in Abuja on August 13, 2016, organised by The Everlasting Arms Parish of RCCG. The teens, who have to register at www.rccgteapteens.org to participate, will be listening to priceless advice on career choices from Mr. Godwin Emefiele, CBN governor; Mrs Ifueko Omoigui-Okauru, former chairperson Federal Inland Revenue Service (FIRS); Mrs Chinelo Anohu-Amazu, the DG of PenCom; and Ali Baba, ace comedian. Inspirational!
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