Tuesday 16th August 2016

Kachikwu: Nigeria Will Need Extra 900,000b/d to Recover Oil Lost to Militancy Says Chibok girls are not less valuable than oil facilities Crude rises to $47 on OPEC-Russia output cap talks Chineme Okafor in Abuja with agency report The Minister of State for Petroleum, Dr. Ibe Kachikwu, has said that Nigeria will have to increase oil output by an average of 900,000 barrels per day (b/d) in order to recover

crude oil that has been shut in to a series of militant attacks on oil and gas assets in the Niger Delta in recent months.

Kachikwu, who spoke to CNN’s Richard Quest last

night, however said he was not particularly optimistic about the possible talks on a production freeze by other oil producing countries to bolster prices, saying similar efforts

a few months ago had failed.

Despite his lack of confidence, the price of crude oil rose yesterday following reports that Russia and the Organisation of Petroleum

Exporting Countries (OPEC) may resume dialogue on a production freeze.

The petroleum minister said the federal government was in continuing dialogue

EFCC Probes Jang over Alleged Missing Funds… Page 12

with militants and their representatives in the Niger Delta and expressed confidence that in the next one or two months, a resolution will be reached to end the attacks on oil assets.

Continued on page 6

Tuesday 16 August, 2016 Vol 21. No 7781. Price: N250

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PDP to Proceed With Convention Despite Conflicting Court Orders Party screens George, Adeniran, Dokpesi for chairmanship election Tobi Soniyi, Onyebuchi Ezigbo, Alex Enumah in Abuja and Ernest Chinwo in Port Harcourt The Peoples Democratic Party (PDP) has said that it will go ahead with its national convention scheduled for tomorrow despite a restraining order by a Federal High Court in Abuja stopping the convention.

The Abuja court order came on the heels of another one by a concurrent Federal High Court in Port Harcourt, Continued on page 6

SUNTRUST OPENS ITS DOORS TO CUSTOMERS

L-R: Chairman, Senate Committee on Appropriation, Danjuma Goje; President, Dangote Group, Alhaji Aliko Dangote; Oba of Lagos, Alhaji Riliwan Akiolu; Obi of Onitsha, Alfred Nnaemeka Achebe; and Managing Director/CEO, SunTrust Bank, Muhammed Jibrin, at the opening of SunTrust Bank in Lagos… yesterday abiodun ajala

Defence Chief: Decision on Chibok Girls, Boko Haram Prisoner Swap is Political Journalist declared wanted asks army to buy him ticket Aisha Wakil, Bolori turn themselves in Tobi Soniyi and Sumaina Kasim in Abuja with agency report Following the release of a new video showing some of the kidnapped Chibok schoolgirls, the Chief of Defence Staff (CDS), Lt. Gen. Abayomi

Olonishakin, has said the release of detained Boko Haram suspects for the return of the girls is a political decision.

This is just as two of the

persons – Mrs. Aisha Wakil and Ahmed Bolori – who were declared wanted by the Nigerian Army on Sunday for allegedly

withholding information on the whereabouts of the girls, yesterday turned themselves in to the military authorities in Abuja and Maiduguri,

respectively, to provide information that may help them in the rescue of the secondary schoolgirls who were kidnapped by the terror

You're No Longer a Military Ruler, Oba of Lagos Tells Buhari… Page 9

sect two years ago.

A third person, Ahmad Salkida, a journalist who once worked for Blueprint and Daily Trust newspapers in Abuja, but is now resident Continued on page 6

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PAGE SIX DEFENCE CHIEF: DECISION ON CHIBOK GIRLS, BOKO HARAM PRISONER SWAP IS POLITICAL in Dubai, United Arab Emirates (UAE), was also declared wanted for posting the latest video that showed the Chibok girls.

Speaking with reporters after a meeting of top security chiefs at the State House in Abuja yesterday, which was neither attended by the president or the vicepresident, the CDS said the military was analysing the video released by Boko Haram and would make appropriate comments at the right time.

Asked what the meeting dwelt on, he responded: “The meeting was about how we can handle crises, all forms of crises, be it floods or terrorism.”

On the three persons declared wanted by the Nigerian army in relation to the Chibok girls’ kidnapping, he said: “Nobody reported to my men and was turned back.”

On the plea to swap the detained Boko Haram suspects with the girls, he said: “That is a political decision. The military’s decision is that we are going ahead with our operations. The operation is being conducted appropriately.”

Also speaking, the Comptroller General of Customs Hammeed Ali said: “It was not a meeting as such, but a little workshop that was arranged for us to understand how to respond to emergency issues, and how to be in a position to advise the president to take the right decisions during emergency situations, either in the event of terrorism, flooding or any other thing.

“It was put together for chief executives to sit down and understand the process of taking decisions when there is disaster. We plan to put what we have learnt today to use.

“We are facing terrorism and we have disasters. There is information going round now that some states are going to witness floods. We never can tell when disasters will happen. We must be ready to be able to counter whatever happens.”

In his remarks, the Minister of Information and Culture, Alhaji Lai Mohammed, reiterated that the federal government was in talks with Boko Haram to ensure the safe return of the girls.

He said: “The government’s position is clear that we are in touch with them.

We are just being cautious to ensure that we are talking to the right people especially with the news that there is a split in the leadership.”

Mohammed said the safety and security of the girls remained a high priority of the government.

“The thrust of my statement was to assure the nation that we are on top of the situation. We are not even just reacting to the video, we have gone far beyond the video in talking to the group already,” he added.

Asked for the position of government on the demand by Boko Haram for a prisoner swap for the return of the girls, the minister said: “Until you are able to ascertain the authenticity of those you are talking to, you don’t go into details.”

On the plan by members of the Bring Back Our Girls (BBOG) group to carry its protest to the State House, the minister said that government appreciates their efforts and assured them that government remained determined to rescue the girls.

He said: “We appreciate their

commitment to the return of these girls but there are few things we need to do behind the scene. What we are saying is that the government is committed to do everything to rescue these girls.

“We are engaging them. By saying we are talking to them, I am talking from a point of knowledge. It does not matter what other people say. I know that the government is in touch with the group.

“Most people will forget the issue of these girls as soon as the effect of this video is over but the government is daily working on it.

“Until the release of this video, the effort was not attracting any attention.

But everyday, the Office of the National Security Adviser and others concerned were working on it.

“For us, it is not just because of the release of the video but because of our belief that there will be no final closure to Boko Haram until we are able to resolve the issue of these girls.”

Wakil, Bolori Turn Themselves in However, two of the persons declared wanted by the Nigerian Army in relation to the whereabouts of the schoolgirls have voluntarily turned themselves in to the authorities in Maiduguri and Abuja, to assist them with the search and rescue of the Chibok girls.

One of the three persons, Bolori, who had turned himself in on Sunday evening at 7 Division HQ in Maiduguri, the Borno State capital, but was asked to go back home without questioning, returned to the army barracks yesterday, reported online news medium, Premium Times.

At about 10 a.m. yesterday, Bolori posted a picture on his Facebook page showing him signing a security post visitor’s book with a comment that read: “I have signed the visitors register since and I am still waiting to be taken in.

Although the Army guard doesn’t have airtime to contact his head.”

An hour later, he posted another photo saying: “Finally, I am driving into the Army Operations Headquarters now.”

Some 20 minutes later, he posted another picture saying: “The army is now treating me friendly and peacefully, as a nice colonel by the name Ahmed (a military police officer), just took me to his office to drink tea. May God help us!”

Similarly, Mrs. Wakil, a Nigerian, turned up at the Defence Headquarters (DHQ) in Abuja yesterday, insisting she was not on the run and faulted the army for declaring her wanted.

Wakil told Premium Times she arrived at DHQ but was not immediately taken in for interrogation.

She said front desk officers asked her what she wanted and she told them she was declared wanted yesterday. But the officers said they were not aware of such a declaration until she asked them to read the newspapers online.

“They told me they will go and read and get back to me,” Wakil said.

A few minutes later, a supervisor entered the reception to collect her passport and told her he would return 10 minutes later.

The spokesman of the Nigerian Army, Col. Sani Usman, later confirmed that

Wakil had turned herself in.

“I have been reliably informed that she has reported at the Defence Headquarters and she has been directed to the Directorate of Military Intelligence,” Usman said.

Before she reported at DHQ, Wakil said she was surprised that the army declared her wanted despite knowing where to find her.

In a statement she released yesterday, she said she once met “the chief of army staff and his people” and offered to bring along Boko Haram commanders for dialogue, but the army “chose to do things their own way”.

She said she was always open about her links with Boko Haram but the government always doubted her and wondered why the military chose to believe her this time and embarrass her and her family.

“I am Aisha Alkali Wakil. I understand that the military declared me, Ahmed Silkida and Ahmed Bolori wanted for having links with Boko Haram. It’s interesting, now they believe me,” she said in the statement.

“I know the Boko Haram boys. I have been in front fighting for peace long before the Chibok girls were kidnapped.

Nigerian security knows me too well, I’m not shady. Why declare me wanted?

“I have had meetings with Chief of Army Staff and his people. I told them the way forward, to allow me come with some commanders of Boko Haram and discuss with them and present the release of CBGs (Chibok gorls), but they chose to do things their own ways only and never gave consideration to any of my suggestions.

“I want to inform the Nigerian people of my innocence and make them realise that I am in constant relation with the security personnel and they know where to find me, but wonder why I had to be declared wanted on the national news, even mentioning my husband’s name alongside.

“This has put my immediate and extended family under a lot of pressure and I do not deserve this from the Nigerian government. Though they may not appreciate all my efforts to proffer peaceful solutions to the menace of BH, my name should not be mudslinged [sic] nor my character defamed,” she added.

Wakil, who nicknamed herself “Mama Boko Haram”, was a member of the Committee on Dialogue and Peaceful Resolution of Security Challenges in the North, otherwise known as the Boko Haram Amnesty Committee, set up by former President Goodluck Jonathan, with the belief that it would reach out to leaders of the sect and end the insurgency.

However, the ceasefire engineered by the committee turned out to be fake.

In his reaction, the journalist, Salkida, who has been resident in Dubai for more than three years, said his status as a Nigerian journalist who has “reported extensively, painstakingly and consistently on the Boko Haram menace in the country since 2006 is an open book known to Nigerians and the international community”.

He added: “Equally, my total allegiance and sacrifice to the Federal Republic of Nigeria is self evident. I have stayed within the creed of professional journalism

in my work.

“As a testimony to the credible and professional values of my access, since May 2015, l have been to Nigeria three times on the invitation of federal government agencies. I made personal sacrifices for the release of our Chibok daughters.

“Finally, the army is aware that I am not in Nigeria presently. In the coming days I will seek to get a flight to Abuja and avail myself to the army authorities.

Indeed, my return will be hastened if the military sends me a ticket.”

Buhari's Govt Clueless Meanwhile, the chairman of the Chibok community in Abuja, Tsambido Hosea, yesterday slammed the Muhammadu Buhari administration, stating that it was more clueless than that of former President Goodluck Jonathan’s government on the rescue of the missing Chibok girls.

Hosea, who spoke in Abuja at the daily sit out of Bring Back Our Girls (BBOG) advocacy group, expressed the frustration of the Chibok people over the intrigues and politics that have surround the continued captivity of the 218 Chibok secondary school girls by Boko Haram, saying that the current administration has been clueless about the rescue of the missing girls.

According to him, “We are very, very angry with this government. This government is very clueless more than the previous government because of their empty promises.

“In the history of Chibok, we have never voted the government in power but this government got our votes on the understanding that it would bring back our daughters.

“Because of this issue, the Chibok community wholeheartedly voted Governor Kashim Shettima and President Buhari into power.”

He stated that most of the parents of the missing girls were very sad because they have not seen their children, adding at this point, “we want the government to sit up and give us hope because they are asking for peace and economic progress and if they don’t, they will not get any of the peace and economic progress they want”.

“I learnt that the government is withdrawing troops from the North-east to protect oil installations in the Niger Delta, does it mean the oil is better than our girls?” he queried.

Speaking also, a leader of BBOG, Aisha Yesufu, informed reporters that everyone was angry with the way the federal government has been foot-dragging over the rescue operation of the girls.

He stressed that there was a sense of anger over the whole issue and urged the federal government to make efforts to calm down the parents of the girls, as they need psychological help.

“The military is running helter-skelter without being tactical. Government should sit down and do the needful,” she said.

While addressing the BBOG group, one of its founders and former Minister of Education, Mrs. Oby Ezekwezili, said the group would not be tired of demanding for the rescue of the girls by the federal government.

PDP TO PROCEED WITH CONVENTION DESPITE CONFLICTING COURT ORDERS which reaffirmed the convention and ordered the Independent National Electoral Commission (INEC) to monitor it.

In a statement issued yesterday evening, in reaction to the ruling of Justice Okon Abang of the Federal High Court in Abuja, the spokesman of the PDP, Mr. Dayo Adeyeye, said the party as a law abiding organisation would obey the order of the Port Harcourt Federal High Court until it is set aside by a “court of competent jurisdiction”.

“Our attention has been drawn once again to another act of judicial recklessness by the Honourable Judge of the Federal High Court, Justice Okon Abang of the purported suspension

of the PDP National Convention holding in Port Harcourt, Rivers State on Wednesday the 17th of August 2016.

“We wish to however state that a Federal High Court in Port Harcourt, Rivers State, had earlier in the day given a comprehensive order wherein the Honourable Judge specifically ordered the PDP to proceed with the convention as scheduled without hindrance.

“Indeed his lordship while giving the order mandated all relevant agencies including the police, DSS (Department of State Service) and INEC to cooperate with the party in organising a hitch-free national convention.

“You may also wish to note that the Federal High Court in Port Harcourt, Rivers State, gave an interlocutory order while Justice Okon Abang, Abuja, gave an interim order.

“The order of the Port Harcourt Court is clearly superior and earlier in time to the interim order given by Justice Okon Abang. In the light of the above, the Peoples Democratic Party (PDP), as a law abiding party is obeying the order of the Port Harcourt, Federal High Court until set aside by any competent court of jurisdiction.

“In view of the above, the 2016 Repeat National Convention of the Peoples Democratic Party (PDP) will continue as scheduled, as we welcome

all delegates, party leaders, other critical stakeholders, the INEC monitoring team and other friends of PDP to Port Harcourt, Rivers State, while wishing all our members and supporters a successful national convention,” he said.

Before the statement by the main opposition party, the Federal High Court in Abuja had issued an order suspending the proposed convention of the party.

Justice Abang, who issued the order, said that he did so in the interest of justice for both parties in a suit pending before him.

Abang also said that the order was Continued on page 8

Ezekwezili, who berated the federal government for declaring Salkida wanted despite his efforts behind the scenes to help secure the release of the girls, emphasised that the federal government must do all it could to make sure that the girls are brought back.

“We have stayed firm, knowing that the parents of our girls have not known peace because they have been deprived of their loved ones. Our Chibok girls are the value of systems, citizens of the nation and they matter.”

According to Ezekwezili, the former administration had come and gone on this issue, but the new administration which promised to do everything, went out to campaign and made the rescue of Chibok girls a priority, has failed on its promise.

“When Amina (the Chibok girl that escaped early this year) got out, there wasn’t a radical change on the part of

our government, but expectations were high after the commitment made by the government at the Presidential Villa on the rescue of our girls. However, the government like the previous government thought that we would soon get tired.

“With the coming out of the video, there’s a stretch of suffering on our girls and I must say our girls have suffered enough.

“We knew that government was speaking with Ahmed Salkida, how come nothing is coming out of it? Is there really a rescue operation? We are not tired at all; our Chibok girls must be brought back. This is the best opportunity we have.

“If this video did not jolt our government into action, what will?

We are going to dance on the day of the rescue of the Chibok girls. We want immediate action on the rescue of our girls. We want their rescue now,” she said.

KACHIKWU: NIGERIA WILL NEED EXTRA 900,000B/D TO RECOVER OIL LOST TO MILITANCY “There’s a lot of dialogue, a lot of security meetings and we expect that in the next one or two months, we will arrive at a lasting resolution on the problem in the Niger Delta,” he said.

He added that Nigeria would need to produce on average 900,000b/d extra to recover oil and the attendant revenue lost to the militancy in recent months.

“We are producing some 1.5 million barrels per day and would need on average 900,000 barrels per day to catch up on what we have lost. If we can achieve peace, this will be feasible,” he said.

However, when he was reminded by Quest that an extra 900,000b/d would run contrary to possible talks next month on a production freeze in order to shore up oil prices, Kachikwu said he was not optimistic that a consensus could be reached on an output cap, as efforts in the past had failed.

“I’m not too optimistic about an output freeze, because we tried this in the past and it failed.

“Also, OPEC accounts for 30 per cent of total global output, so we will need to be aggressive in our engagements with producers that account for 70 per cent of output, so it is only if a consensus is reached, then me have some hope,” he explained.

On yesterday’s criticism by parents of the Chibok girls that the military and its resources were being diverted to secure oil facilities instead of recovering the schoolgirls who were kidnapped from their school by Boko Haram two years ago, he said it was not true that the girls were less important than oil facilities in the Niger Delta.

“It is not true that oil facilities are more of a priority than the Chibok girls. As you know President Muhammadu Buhari from the outset of his administration built a coalition with neighbouring countries to defeat the terrorism in the North-east.

“He also had to set up a panel to probe the diversion of funds meant for the procurement of arms to fight the insurgency. All these suggest that the insurgency in the North-east is a major priority of this government.

“I am a father and I can imagine what it means to have my children kept in captivity in a forest and the president feels the same way. So he has not given up the girls,” the minister said.

Meanwhile, the price of crude oil rose yesterday following reports that Russia and OPEC may resume dialogue on a production cap.

The Wall Street Journal (WSJ) reported that the global oil benchmark Brent crude rose 0.9 per cent to $47.38 a barrel on London’s Intercontinental Exchange (ICE) futures exchange. It however traded on the New York Mercantile Exchange, West Texas Intermediate futures at $44.86 a barrel, up 0.8 per cent.

Both the WSJ and UK’s Telegraph reported that the price movements were triggered by comments made by Saudi Arabia’s Energy Minister, Khalid al-Falih and Russian Energy Minister, Alexander Novak that market action was likely if

discussions at an upcoming meeting in Algeria between OPEC and its other ally producers go well.

According to WSJ, prices have gained since Saudi’s al-Falih signalled last week that his country was open to measures to stabilise the market which has been struggling with oversupply for the past two years.

Saudi is the biggest producer among members of OPEC and historically seen as the de facto leader of the oil cartel. The OPEC meeting in Algeria is scheduled as an informal gathering in September.

The Telegraph also reported that the price movement was in reaction to the OPEC Algeria meeting where the focus is expected to return to a possible supply cap deal after similar talks in Doha failed earlier this year.

Novak confirmed Russia’s participation at the Algeria meeting to Saudi newspaper, Asharq al-Awsat. Novak stated that his country - the world’s third largest supplier of oil - was also involved in early discussions.

He said: “We are co-operating in the framework of consultations regarding the oil market with OPEC countries and producers from outside the organisation, and are determined to continue dialogue to achieve market stability.”

At the weekend, al-Falih told the Saudi Press Agency that “we are going to have a ministerial meeting of IEF in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilise the market”.

He added: “We’ve said before that market rebalancing is already taking place but the process of clearing crude and product inventories will take time.

We are on the right track and prices should reflect that.”

Oil price recovery from a 12-year low of $28 a barrel in January had floundered last month when global economic fears reignited concern that there was a glut in the market, causing prices to slump back to $41.66 a barrel.

TOP GAINERS NGN NGN UNILEVER 1.75 36.75 SKYEBANK 0.03 0.63 WAPIC 0.02 0.52 UNIONBANK 0.15 4.15 LAFARGE 1.72 55.00 TOP LOSERS NGN NGN CHAMPBREW 0.33 3.10 NAHCO 0.38 3.62 UNITYBANK 0.08 0.91 ETERNA 0.17 2.40 UACN 1.00 19.00 HPE Nestle Nig Plc ₦ 825.00 Volume: 213.637 million shares Value: N2.049 billion Deals: 3,742 As at yesterday 15/08/16 See details on Page 42

% 5.0 4.6 4.0 3.7 3.2 % 9.6 9.5 8.1 6.6 5.0

T H I S D AY TUESDAY AUGUST 16, 2016

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Two Soldiers Arrested for Brutalising Lagos Residents Chiemelie Ezeobi Detectives from the Yaba Division of the Lagos Police Command have arrested two soldiers – Privates Ihama Osaretin and Okpor Ray – for allegedly attacking and brutalising some residents of Makoko area in Lagos State.

Although they were not the only ones that stormed the waterside community to attack its residents, they were the only two arrested after they had raid on Sunday night, injuring many persons.

THISDAY gathered that the

rampaging soldiers, numbering about 14, had gone to the community in a rage, beating up anyone they set their eyes on.

Although the bartered residents initially fled their community, they were said to have regrouped and confronted the soldiers armed with dangerous weapons such as axes, broken bottles, iron rods, wood and cudgels.

When they attempted to overpower the soldiers, 12 of them succeeded in fleeing to safety, leaving two others behind at the mercy of the angry residents who

unleashed terror on them.

It was gathered that attempt to beat the duo was aborted by two police attack patrol teams attached to Makoko Police Division that were quickly mobilised to the scene by the Divisional Police Officer.

The quick intervention of the police saved the two privates, who were later rushed to the hospital for treatment of the injuries they had sustained.

Confirming the incident, the state Police Public Relations Officers Dolapo Badmos, a Superintendent of Police, said

one Segun Enikumehin of Aiyetoro Street, Makoko was beaten to a pulp by the soldiers to the extent that he lost one of his eyes.

She said an angry mob descended on the soldiers but they were lucky to have been rescued by the police.

She said: “On Sunday, Yaba Police Division received information that some soldiers allegedly stormed Makoko area to attack the residents in yet-to-be determined circumstances.

“One Segun Enikumehin was beaten to a pulp and one of his

eyes was injured during the attack.

Our men were mobilised to the scene and they arrested one of the soldiers, Osaretin, while another soldier, Chinedu, who was beaten and stabbed by the angry mob in the reprisal, was rescued.

“The victims were taken to mainland general hospital for medical treatment. While efforts are in progress to contact the soldiers’ service base.”

She said normalcy had returned to the place, while the police were investigating the cause of the fracas.

Chief of Army Staff, Lt. Gen. Tukur Yusuf Buratai

Again, Suspected Herdsmen Kill Six in Kaduna John Shiklam in Kaduna Barely two weeks after 11 persons were killed in Kaduna by suspected herdsmen, another six were killed by suspected herdsmen in Godogodo, Jama'a Local Government Area in Kaduna State at the weekend.

The victims, mainly youths, were said to have been attacked at their farms last Saturday.

The herdsmen reportedly launched the attack on the farms, killing six persons while several others were said to have escaped with gunshot

wounds.

A community leader and a relation of one of the deceased, who craved for anonymity, gave the names of those killed as Monday Hamza, 24, Toma Masara, 35, Chaka Rubutu, 26, Julius Golkofa, 19, Boboo Okocha, 18, and Sambo James, 17.

According to the community leader, “Last Saturday, these young men that were killed went out as a group to their farms with a few others.

“We were told that armed Fulani men attacked them on their farms

and some of them escaped with bullet wounds. A search party on Sunday found them ridden with bullets and machete cuts and they were all dead. The police took their corpses to the mortuary in Kafanchan.”

He said the incident had created fear and apprehension in the surrounding villages, with hundreds of people migrating to Godogodo for fear of being attacked by the herdsmen.

“As I am talking to you, Godogodo is full to the brim with

refugees who have fled their villages seeking safety here because it is a bigger village on the highway and has better security. There is no day that someone is not killed by Fulani men around here.

“After the attack, they would cut down all the crops or move their cattle into the farms to eat the crops. They are going about from farm to farm, destroying our crops and killing people with their sophisticated weapons.

“There will be hunger this year because we cannot go to farm and

our crops are being destroyed by the herdsmen.

“What they are saying is our villages are now cattle grazing reserves and they want everybody out,” the community leader volunteered.

However, while reacting to the incident, Chairman of the Kaduna State chapter of Miyetti Allah Cattle Breeders Association, Dr. Haruna Usman, said the herdsmen were on a revenge mission to avenge the killing of one of their leaders in one of the villages sometime ago.

According to him, the herdsmen are not “crazy like that” to just kill people.

Spokesman of the Kaduna State Police Command, Aliyu Usman, a Deputy Superintendent of Police (ASP), who confirmed the killings, said some arrests had been made.

He added that further security measures had been taken to calm the growing tension in the area.

Two weeks ago, 11 people were killed by suspected herdsmen in the area, with several others wounded and houses set ablaze.

“All these organs of the party are together in saying that the convention must hold. So the issue of me stepping down or the convention being moved to Abuja does not arise.

“This is not the first time convention would be held outside Abuja. He is not the person to determine that,” Wike explained.

On the claim by Sheriff that Wike and Ekiti State Governor, Ayo Fayose had hijacked the PDP, Wike said: “Did we hijack the party when he said he never expected to be chairman and then we made him chairman? Now because it is not in his favour, he is saying we are hijacking the party.

It is very wrong for Sheriff to have said that.

“When did he come to the party; we were in the PDP since its formation.

Am I going to hijack the party from a person that just became a member or from somebody who has been a member of the party?

“What some of these people do not understand is that they must make sacrifices. The party is saying this man (Sheriff) cannot be our chairman. He cannot be right where everybody is saying we will not accept this; it will mean being insensitive to the plight of the people.

“We brought him in then, thinking that he had what was required to manage the party. You can see the reaction from everyone – 99 per cent of the party is saying we cannot accept this character. That is why we have to follow the line of members of the party.

“Some people don’t want to make sacrifices for the party’s interest. What is Sheriff looking for that he cannot forgo in the interest of the party?

Remember that when he was made the chairman of the PDP, the governor of Kano State, Ganduje, came out and said that Sheriff was going to work for them (APC) while the governor of Borno State said Sheriff was going to destroy the party (PDP).

“Sheriff should have proved these people wrong by proving that he is not going to work for them and will not destroy the party (PDP). But he is now confirming what these governors have already said; that he was going to work for the APC and try to destroy the PDP. It is very clear that these governors predicted correctly because they know

him very well.

“Sheriff has nothing to say again and that is why he is talking about the hijack of the party. Who is going to contribute more in terms of PDP winning? I am from Rivers State, he (Sheriff) is from Borno. What is the vote from Borno that he gave to PDP and what is the vote from Rivers for PDP? “If there is an election today, who will support the PDP more? Is it him from his state or me from Rivers State?

Who is more of a liability to the party?

Is Sheriff an asset to the party and me a liability or me an asset to the party and him a liability? I am going to do anything that is required to support the party. So, such accusation of anybody hijacking the party is neither here nor there.”

Also, ahead of tomorrow’s convention, the screening committee of the party yesterday screened former Deputy National Chairman of the PDP, Chief Bode George; former Education Minister, Prof Tunde Adeniran; and Chairman of Daar Communications Plc, Chief Raymond Dokpesi, in readiness for election to the post of national chairman of the party.

This was just as the screening committee chaired by former Benue State Governor, Mr. Gabriel Suswam, commenced screening of candidates who would vie for various elective positions.

Other prominent members of the convention screening committee include: former Governor of Sokoto State, Alhaji Attahiru Bafarawa; former Imo State Governor, Achike Udenwa; former Adamawa State Governor, Boni Haruna; former Deputy Senate President, Senator Ibrahim Mantu; Senator Enyinnaya Abaribe; and former Minister of Women Affairs, Mrs Josephine Anenih. Rivers State Attorney General, Emmanuel Aguma (SAN), serves as secretary of the committee.

Suswam stated that the committee would screen 57 candidates who had purchased forms to contest elections.

All three chairmanship candidates declared that they would accept the outcome of the convention, pledging that their loyalty remained with the party.

They also pledged that they would support the process to rebuild the PDP after the convention.

PDP TO PROCEED WITH CONVENTION DESPITE CONFLICTING COURT ORDERS issued to curb the excesses of some parties in the matter and to serve as a disciplinary measure against those treating the court with levity.

He made particular reference to Senator Ben Obi, a member of the National Caretaker Committee.

Justice Abang whose attention was drawn to a copy of the ex-parte order obtained by Obi from the Federal High Court, Port Harcourt, said that Obi’s action by filing the motion was in bad taste.

The judge held that Obi secretly went to Port Harcourt to obtain the said order, when he knew that he was a party seeking to be joined in the legal action filed by the Ali Modu Sheriff faction seeking to stop the Port Harcourt convention.

“Senator Ben Obi cannot undermine the authority of this court having become aware of the pendency of this matter, he ought to have waited for the outcome of this court.

“He cannot slap the court in the face and expect the court to grant him any indulgence.

“Democracy is not anchored on the whims and caprices of anybody, it is also not anchored on self help. Obi cannot treat the court with levity.

“It is unfortunate and unfair that he approached the Port Harcourt court for the ex-parte order which was granted to him.

“To curb the excesses of the recalcitrant parties and to prove that courts are not bull dogs that can bark but cannot bite, I am inclined to grant the request of Sheriff and I hereby make an order suspending the PDP convention of August 17 in exercise of my disciplinary jurisdiction to maintain the dignity and integrity of the court,” he said.

Earlier, Justice Abang had joined Senators Ahmed Makarfi, Obi, Odion Ugbesia, Abdul Ningi, Mr. Kabiru Usman, Mr. Dayo Adeyeye and Hajia Aisha Aliyu individually as defendants to the suit filed by Sheriff.

The judge also refused to grant the stay of execution on the ruling of July 28 in which he affirmed the leadership of the Sheriff-led faction of the PDP. Abang said that Mr. Ferdinand Orbih (SAN), who made the request for the stay of execution on behalf of the Makarfi-led faction, lacked the locus standi to have made the request because he was not a

party to the suit that brought the ruling.

The court described the lawyer as a busybody and a meddlesome interloper and imposed a fine of N50,000 on him for attempting to thwart the proceedings of the court.

Abang frowned on the claim by Orbih that he had filed an appeal against the ruling, adding that the lawyer failed to put the notice of the appeal at the disposal of the court and that his claim that he had transmitted the court record to the Court of Appeal was an exercise in futility because he did not obtain the permission of the court before doing so.

The court had also dismissed an application brought by one Mr. Sikiru Ogundele asking the judge to disqualify himself from the matter on account of bias.

Abang said that it was on the record that Ogundele was not a party to the suit, therefore, he could not seek for any relief.

Sheriff had filed a suit challenging the legality of the planned PDP convention and prayed the court to stop it on the grounds that it was being organised by a body not known to law.

The same judge last month affirmed Sheriff as the authentic national chairman of the party and nullified the appointment of Ahmed Makarfi as the caretaker committee chairman of the party.

However, before Justice Abang’s ruling yesterday, Justice Ibrahim Watila of the Federal High Court sitting in Port Harcourt had ruled yesterday that the PDP convention scheduled for Port Harcourt tomorrow was in line with the July 4 judgment of the court which validated the May 21, 2016 national convention of the party.

Justice Watila also ordered INEC to monitor the convention. He also ordered the Inspector General of Police, the Director General of the DSS, the Rivers State Commissioner of Police and the Rivers State Director of the DSS to provide security at the convention.

This came as the Rivers State governor and chairman of PDP National Convention Planning Committee, Nyesom Wike, declared that the convention would go on as planned because it was backed by the courts and all authorities.

Ruling on an application for an interlocutory injunction brought before

the court by Senator Obi on behalf of the National Convention Planning Committee of the PDP, Justice Watila noted that the July 4 judgment of the court had not been upturned by any appellate court and so was subsisting.

He also noted that the defendants in the suit were appropriately served but failed to enter appearance in the suit, adding that that would not be an excuse for him not to rule on the application.

Watila declared that the July 4 judgment of the Federal High Court in Port Harcourt recognising theMay 21 National Convention which produced the National Caretaker Committee had neither been appealed against nor set aside, hence it behoved the court to protect that judgment.

The court added that there was no injunction against the holding of the convention in Port Harcourt brought to the attention of the court during the hearing of the application submitted

by Senator Obi. The motion was filed by Wori N. Wori on behalf of Obi relying on a 30-paragragh affidavit deposed to by Felix Obuah.

“The 1st, 2nd, 3rd, 4th and 5th defendants are hereby restrained in any manner howsoever from interfering with the conduct of the national convention of the Peoples Democratic Party (PDP) scheduled to hold in Port Harcourt on Wednesday, the 17th day of August 2016 or any other date and venue pending the hearing and determination of the motion on notice or the originating summons as the honourable court may decide,” Justice Watila ordered.

The court also ordered that the police, DSS and INEC be served by substituted means through their respective offices in Port Harcourt.

In an interview after the ruling, counsel to Obi, Mr. Wori, said with the granting of the interlocutory injunction, the party had the legal backing to carry on with tomorrow’s convention in Port Harcourt.

Also addressing journalists after the ruling, Rivers State Governor Wike said all was set for the convention.

“It (court ruling) is a good news because many people have been wondering whether the national convention will hold as a result of

certain remarks by certain persons, but let me assure you very well that we are going ahead with the national convention.

“We are backed by all authorities and by the law that the convention will go ahead based on the fact that the court has recognised the convention before now from the July 4, 2016 judgment.

“Again, today, the Federal High Court presided over by Justice Ibrahim Watila has reconfirmed the judgment of Justice Liman that INEC should monitor the convention and that the security agencies should provide security as required.

“Today’s matter was instituted by the PDP caretaker committee against INEC and security agencies. One of the reasons being that the security agencies were party to the judgment of July 4, 2016.

“Since the court upheld the convention that was held on the 21st of May 2016, the caretaker committee of the party felt it should go a step further to make sure the judgment of the court is implemented.

“Now, the court has said that INEC should monitor the election as required by law, knowing fully well that INEC has been dealing with the Makarfi-led committee, by the grace of God, everything is set for the national convention to take place on the 17th of August,” the governor explained.

Reacting to the condition given by Sheriff that Wike should step down as the chairman of the convention planning committee and that the convention should be held in Abuja, Wike said Sheriff was being petty and was in no position to dictate to the party.

“That is being petty. It means that if I step down as the chairman of the convention and they move the convention, then he will be willing to do that. Sheriff says he is the chairman of the party.

“So if I stepped down and the convention is moved to Abuja, does it mean he will no longer be the chairman of the party? You see, it doesn’t make sense. If you allow that to happen, then you are giving him recognition.

“We have every organ of the party; we have the BoT, we have the National Assembly caucus, we have the Governors’ Forum.

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TUESDAY AUGUST 16, 2016 • T H I S D AY

NEWS

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

APC Clueless About Governance, Says PDP Sheriff’s mission to kill party has failed, says Fani-Kayode

Onyebuchi Ezigbo in Abuja Ahead of tomorrow’s national convention of the Peoples Democratic Party (PDP), the Chairman of the National Convention Committee and Governor of Rivers State, Chief Nyesom Wike, has asked fellow party men to support the repositioning effort by the party to reclaim power in 2019.

This came as the former Aviation Minister and a chieftain of the PDP, Femi Fani-Kayode, accused the former acting National Chairman of the party, Senator Ali Modu Sheriff, of pursuing a fruitless mission to destroy the party.

Wike, speaking on behalf of the party leadership, said all the notable achievements recorded by the country in the last 16 years, including economic and democratic gains, are fast eroding under the President Muhammadu Buhari-led All Progressives Congress (APC) administration.

“In only one year of the APC-led government, Nigerians are yearning for the return of the PDP to power given the fast disappearance of democratic gains the party achieved in 16 years of its administration. It is noteworthy that all the values associated with our great country as the giant of Africa and the fastest growing economy in Africa is being eroded,” he said.

A statement issued by the Chairman, Publicity SubCommittee of the National Convention Committee, Chief Onyema Ugochukwu assured all PDP fathful that the party would continue to play its role after the convention as the main opposition party “by providing alternative governance and remaining a solution-driven political party to help the government in power, and reposition itself to regain power in 2019 for our common good.

“Just last week, South Africa overtook Nigeria as the biggest economy in Africa; herdsmen attack and

kidnapping is becoming more prevalent; ethnic and tribal agitation for self-determination is on the increase; and the government of the day is helpless in providing solution to all of these numerous problems bedeviling our dear nation.

“We are ready to make amends as a party and we are working with all stakeholders across the country to restore our past glory.”

Meanwhile, PDP has said about 90 aspirants have so far picked nomination forms to contest for various positions at the scheduled national convention.

Among the aspirants is the former PDP National Publicity Secretary and Political Adviser to former president, Dr. Goodluck Jonathan, Prof Rufai Ahmed Alkali, who is in the race for the position of the Deputy National Chairman (North) of the party.

PDP said all the delegates attending the repeated convention have the opportunity to rescue Nigerians from confusion and strife that the APC-led government has imposed on them by voting for any candidate of their choice, adding that the time is now to provide answers to Nigeria and Nigerians.

The party said that yesterday that the aspirants who are drawn from the six geo-political zones of the country will be jostling to fill in the vacant positions that occurred as a result of the dissolution of National Working Committee (NWC) at the last convention in May. According to the party, the offices to contested for at the repeated national convention are National Chairman, 1st Deputy National Chairman (South), 2nd Deputy National Chairman (North), National Secretary, Deputy National Secretary, National Treasurer and Deputy, National Publicity Secretary and Deputy, National Legal Adviser and Deputy, National Woman Leader and Deputy, National Youth Leader and Deputy,

You’re No Longer a Military Ruler, Oba of Lagos Tells Buhari Obinna Chima The Oba of Lagos, Oba Rilwanu Akiolu, has advised President Muhammadu Buhari to change his leadership style, saying the president should recognise that he is not a military ruler.

The traditional ruler who said this while making a speech at the opening of SunTrust Bank Limited in Lagos yesterday, also urged the president to always listen to advice on how best to govern the country.

Akiolu also faulted the measures being adopted by the federal government in tackling the decay caused by the immediate past government, stressing that all that happened in the past government were not caused by former president, Dr. Goodluck Jonathan.

“All of us just have to support the president and I advise him to know that he is no more a military man. I am not afraid to say that. On the measures they are taking to tackle the rot of the past, honestly, whether they like it or not, it was not totally the fault of Jonathan.

“I don’t hide the fact that he (Jonathan) is my personal friend. All that happened was not totally his fault. But it is not too late to make amend.

With Prof. Yemi Osinbajo as head of economic team, with people like Mrs. Nike Akande as the President of the Lagos Chamber of Commerce and Industry and others, they (the federal government) should listen to advice from people in commercial sector of the economy,” he added.

National Organising Secretary and Deputy, National Financial Secretary and Deputy and other National Ex-Officio members.

Meanwhile, the former Aviation Minister, Fani-Kayode, has accused Sheriff of pursuing a fruitless mission to destroy the party.

He also alleged that just as former president, Chief Olusegun Obasanjo, used Sheriff to destroy the All Peoples Party (APP), President Muhammadu Buhari was also using the former governor of Borno State to destroy PDP now.

The former aviation minister had, while opposing the appointment of Sheriff as the national chairman of the PDP, accusehim as a Boko Haram sponsor, a comment that made the former governor to threaten to go to court.

Speaking on the frequent changing of political parties, Fani-Kayode said Sheriff had changed political parties not less than four times in the last few years.

“Each time he goes to a new party that is not in power at the centre, he assumes the role of a government mole and spy trying to destroy it from within on behalf of the government of the day.

“That is his modus operandi.

On return, he gets protection from the state for all the many atrocities he has committed over the years. He has betrayed everyone and every political party he has ever worked with or for.

“Go and ask around. We used him to spy on and destroy the APP when Obasanjo was in power, and now Buhari is

using him to destroy the PDP. Luckily, he has failed because 99 per cent of PDP members have rejected him and now he is on his own,” Fani-Kayode said.

However, Sheriff had said in an interview with Channels Television last Sunday that but for former President, Dr. Goodluck Jonathan, and 20 others, who came to beg him, he would have taken Fani-Kayode to court for calling him a Boko Haram member.

In a statement issued yesterday, Fani- Kayode said the former Borno State governor lied.

“Lying Sheriff told Channels TV last night that I sent people to beg him for claiming that he was a Boko Haram member.

These are the lies of a desperate and drowning man,” he said.

Fani-Kayode pointed out that

Sheriff’s mission in PDP was to destroy the party, just the way he did to other political parties he had a stint with.

According to the former minister, “He came to destroy PDP, and if we did not rise up against him and kick him out when we did, he would have succeeded in his mission. I am proud to have been the first to see him for what he is and to publicly blow the whistle on him.

“I was one of those who led the rebellion against him and orchestrated the campaign to push him out and dump him as the national chairman of our party and many have thanked me for that including some of those who brought him in the first place and attempted to impose him on us.”

DISCUSSING MATTERS OF NATIONAL SECURITY

R-L: National Security Adviser (NSA), Maj.-Gen. Babagana Monguno (rtd), and Comptroller-General of the Nigerian Customs Service (NCS), Col. Hameed Ali (rtd), shortly after the national security meeting held at the Presidential Villa, Abuja… yesterday GODWIN OMOIGUI

Ambitious SunTrust Bank Commences Operations Obinna Chima The management of SunTrust Bank Limited, one of the recently licensed commercial banks in the country officially opened its doors to customers yesterday.

The bank has a regional banking licence.

Speaking at the opening ceremony which attracted top government officials, politicians as well as traditional rulers in Lagos yesterday, the Chief Executive Officer of the bank, Mr. Muhammad Jibrin, said the bank was the first fresh banking licence to be issued by the Central Bank of Nigeria (CBN) since 2001.

Jibrin said SunTrust Bank started about six years ago as a mortgage bank, adding that the board and management were able to grow its balance to a reasonable size before they decided to pursue a commercial banking licence from the CBN which they got in September last year.

He said the bank would be a financial technology institution

that would focus electronic channels by offering telephone, mobile and internet banking services.

“Banking is no longer where you go, it is what people do.

Therefore, the only thing that can stand the future is no longer physical branches, but banking services that would be driven by technology. “So, most customers of tomorrow would no longer be the customers that they want to go to the banking hall. So, you need to be able to position the institution to respond positively to the needs and expectations of customers of tomorrow. That is at the heart of our own vision and strategy as tomorrow’s bank today,” Jibrin said.

In his presentation, the Chairman of the bank, Mr. Charles Onyema Ugboko, said establishing a bank amid the present economic situation showed that the board and management are committed to the growth of the Nigerian economy.

In his goodwill message, the Oba of Lagos, Oba Rilwanu

Akiolu, urged the management of the bank to remain focused, even as he appealed to them to employ at least 30 per cent of Lagos indigenes.

Also, the Obi of Onitsha, Igwe Alfred Nnaemeka Achebe, pointed out that going into business at this time when “everybody else is trying to get out of business, takes a lot of courage, and to go particularly into banking takes triple courage.

“But such occasion throws up opportunities to those who can see far and beyond. It is the courage of the founders of this bank that I want to applaud.

If you are just coming in to be another bank, then it is not worth coming in.

“So, you have to come in as a bank with a difference. You must change the game. Service and quality should be your focus. I personally believe that the cost level of banks is very high, so if you can bring your own down, you will win,” the traditional ruler said.

On his part, the Lagos branch controller of CBN, Mr.

J. Iyari, who represented the CBN Governor, Mr. Godwin Emefiele, urged the board and management of the bank to keep to the rules and be good corporate citizen.

“The bank should try to create market niche, be special and be the bank of choice. I assure you that the CBN will continue to provide a level playing field for all operators in the financial services industry to support the growth and development of our country,” he said.

Also, the President of the Dangote Group, Alhaji Aliko Dangote, who was at the ceremony, commended the bank for taking such as abold step.

“As we speak here today, it might be easy for us to be overwhelmed by many challenges we face as business people. The lack of growth in the major economies of the world, the declining commodity prices in general, the weakness in our economy and the difficulty faced by the banking sector all over the world.”

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TUESDAY AUGUST 16, 2016 • T H I S D AY

NEWS

EFCC Probes Jang over Alleged Missing Funds There are ndications that the Economic and Financial Crimes Commission (EFCC) has commenced the investigation of the former Plateau State Governor, Jonah Jang, for his inability to account for some funds running into billions of naira belonging to the state.

The state government in a petition to the EFCC, said it discovered financial discrepancies after studying the handover notes left by Jang.

A source gave the details of what the commission is looking for, saying: “Under Jonah Jang as governor of the state N2

Troops Repel Boko Haram Attack on Kangarwa, Kill 16 Terrorists Soldiers from the Operation Lafiya Dole at the harbour in Kangarwa, Borno State have successfully repelled suspected remnants of Boko Haram terrorists’ attack.

The attack was launched by the suspected terrorists at about 5:30p.m. on Sunday.

A statement by the Acting Director Army Public Relations, Colonel Sani Kukasheka Usman, said the troops rose to the occasion and dealt a decisive blow on the insurgents, by killing 16 of them and recovering arms and ammunition from them.

Usman added that the weapons recovered from the insurgents included one rocket propelled grenade 7 tube, one rocket propelled grenade bomb, 11 AK-47 rifles,

a 60mm mortar tube, a dozen of 60mm mortar bombs, a 36 hand grenade, five AK-47 rifle magazines, 1 Gionee handset and 1 bandolier.

He noted that unfortunately, an officer and 11 soldiers were wounded in action during the encounter.

“We are glad to state they have all been treated at the unit’s medical facility and are all in stable condition.

“The troops have continued to intensify vigilance and high level of alertness through patrols and reconnaissance.

It is in line with that the troops went on fighting patrol to Dogon Chikun this morning, recovered one vehicle and rescued five people from the Boko Haram terrorists,” Usman said.

billion was released by the Central Bank of Nigeria (CBN) for the Small and Medium Scale (SME) businesses in Plateau State.

“The N2 billion was released to Jang in April of 2015, a month before the expiration of his administration. The entire money disappeared. And there’s no trace or evidence that SMEs in Plateau State benefitted from the CBN fund meant for them.

“The administration of Jang got N6.1 billion from the accounts of the state Universal Basic Education Board (SUBEB), Micro, Small & Medium

Enterprises(MSMEs) and the Ministry for Local Government and Chieftaincy Affairs.

“Jang collected N982, 526451.02 from the state government using a front company Darmatist Consult for a purported, non-existent recovery of N7.56 billion from Nasarawa State. The money was paid to Darmatist as consultancy fee.

“Under Jang, millions of naira was debited monthly from the accounts of the 17 Local Government Areas in Plateau State. Jang claimed that the debited funds will

be used to construct one five-kilometre road in each of the 17 local government areas. But most of the roads were never constructed. Just a few local government areas in Jang’s Plateau North senatorial district benefited from this scheme but the funds had disappeared from the state accounts before the emergence of the new administration of Simon Lalong.”

The source added: “Questions are also being raised on how SURE-P funds were disbursed by the Jang administration. As a matter of fact, Jang, in his

handover notes, did not provide the needed information on how much was released, how much was received and what the funds were used for.

“Also being investigated by the crimes commission is the suspicious double award of the computerisation of the Ministry of Finance to a Nix Technologies for the sum of N97,925,000 by the Ministry of Finance. Nix Technologies is believed to be a front company, and the contract was awarded twice and the money paid twice to them for same contract.”

MEND Accuses IPOB, Kanu of Hypocrisy, Provocation Chiemelie Ezeobi Following the recent statement by the Indigenous People of Biafra (IPOB) and its leader, Nnamdi Kanu, where they distanced themselves from the Movement for the Emancipation of the Niger Delta (MEND), the latter yesterday, accused the former of hypocrisy.

In a statement by MEND’s spokesman, Jomo Gbomo, the recent disassociation by IPOB from the gains made so far during the dialogue with the federal government,

was nothing short of a provocation.

MEND had also alleged that it was hypocrisy on the part of IPOB/Kanu to negotiate for amnesty in secret in exchange for his freedom, but to remain defiant in public, thus giving the illusion that they still have the upper hand.

In a statement obtained

by THISDAY, MEND said: “The attention of MEND has been drawn to the recent spate of hypocritical and provocative statements issued by IPOB and its leader, Kanu, which purport to dissociate

IPOB/Kanu from some of the concessions which have so far been secured

by MEND in the ongoing talks aimed at resolving the current Niger Delta crisis between the federal government and MEND. “MEND hereby uses this opportunity to inform the entire world that, following the group’s ongoing negotiations with the federal government, Kanu has made it clear that he is willing to renounce “Biafra” in secret; in exchange for his freedom.

“MEND and the federal government had however, flatly rejected the IPOB/Kanu hypocrisy to remain defiant

in public; while accepting to secretly renounce secession.

“MEND therefore urges the already frustrated and desperate Kanu and IPOB to swallow their pride and make a public denunciation of “Biafra” so that the gullible donors and followers, deceived by the illusion of a “Biafra Republic” that aims to annex the Niger Delta region as part of its territory, shall become fully aware that the so-called “Biafra Republic” is merely a business venture and scam whose sole beneficiaries are Kanu, directors of IPOB and their families and cronies.”

T H I S D AY TUESDAY AUGUST 16, 2016

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COMMENT

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

ALTERNATIVE FUEL FOR VEHICLES

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Chijioke Nwaozuzu argues that the introduction of alternative fuels for vehicles has become inevitable

he Nigerian economy has borne the huge burden of subsidy payments on petroleum products. Massive importation of light petroleum products (petrol, diesel, and kerosene) continues unabated because the national refineries are working sub-optimally and new ones are yet to be constructed. Recently, government announced its plan to privatise the old and mismanaged refineries. It was greeted with relief except for oil industry unions which believe that they will bear the brunt of this exercise unless proper negotiations are made to protect their interest.

Pragmatic reasoning still suggests that the refineries should be privatised, and there are various models that could be adopted for this. However, I do not think that the preferred model is outright sale of the refineries, because the exercise is very likely to translate from public sector (government) monopoly of refineries to private sector monopoly.

A private sector monopoly of refineries without an alternative fuel for our vehicles is absolutely dangerous because 170 million Nigerians are locked into the petrol / diesel ‘captive’ market and will be at the mercy of the directors of the three refineries. You cannot pack in the garage a jeep you bought with millions of naira, just because the price of petrol has risen to, for instance, N300 per litre. There are also far more dangerous political and national security implications.

Now, where does this lead us in our search for solutions towards achieving self-sufficiency in availability of petroleum products? Addressing this critical challenge would require increasing capacity for production of petroleum products (supply- side solution) and / or reducing the demand for petroleum products, particularly petrol and diesel (demand- side solution). The supply-side factors, in the case of our indigenous downstream petroleum sector tend to be more critical. The critical supply factors to be considered in the course of deregulation are improvements in the efficiency of domestic supplies; liberalisation of product supplies; Brownfield refinery expansion (i.e. expansion of existing refineries); and Greenfield refinery development (i.e. new refineries construction). Loosening up all supply-side constraints can only be achieved when existing refineries are repaired, privatised and expanded; and new refineries constructed (both private and PPP-based refineries); and perhaps with the pipelines privatised also.

Conversely, demand-side factors such as products

INTRODUCING NGVS EVENTUALLY ELIMINATE FUEL SUBSIDIES AND FACILITATE A FULL DEREGULATION OF THE DOWNSTREAM PETROLEUM INDUSTRY IN NIGERIA. ITS IMPACT ON REDUCING DEMAND FOR PETROL AND DIESEL IS IMMEDIATE AND MEASURABLE. IT WILL PROVIDE A CHEAPER AND CLEANER ALTERNATIVE FUEL TO MOTORISTS AND REMOVE THEM FROM THE CURRENT ‘CAPTIVE’ PETROL/DIESEL MARKET INTO WHICH EVERY MOTORIST IS LOCKED-IN

substitution with biofuels, compressed natural gas (CNG), liquefied natural gas (LNG) etc.; improvements in the power sector; and the use of more fuel- efficient vehicles are also important but progress in these directions may not keep pace with the urgency required to attain self-sufficiency in supplies. So most industry analysts think!

Now that government has increased the price of petrol from N86.50 to N145.00, and there is nothing in the horizon to suggest that new mega-refineries are being built or small and medium scale -private refineries are being launched, it would seem that introduction of alternative fuels for vehicles (natural gas vehicles, NGVs) is inevitable. The objective should be to integrate fuel substitution with projected refinery supply volumes after the turn-around maintenance of existing refineries have been completed.

According to an industry expert and practitioner, Dr Emeka Ene of Energia Oil Company, the introduction of compressed natural gas (CNG) fuels for public transportation and government/company vehicle fleets is a “low hanging fruit” and represents a “quick-win”. It is clear that Dr Ene was right, but first what is this alternative fuel about? How will it impact Nigerians positively? What are the constraints? Which countries have developed the use of NGVs and how should government and private investors go about its introduction?

Alternative fuels have a role to play in the demand mix for petroleum products, especially in public transportation.

According to an IEA-OECD study carried out by Michael Nijboer on “The Global Use of Natural Gas-Driven Vehicles (NGVs)”, natural gas has been more competitive when compared to gasoline in regard to transmission and distribution grids, and public transportation. According to the report, there is an opportunity for simultaneous gas market development and boosting of a country’s NGV market share.

CNG is produced by compressing natural gas with gas compressors to less than 1% of its volume, and then stored / distributed in hard steel containers (with cylindrical or spherical shapes) at a pressure of 200-248 bar. The cylinders are then fitted into traditional petrol or diesel-run vehicles that have either been modified or manufactured for CNG use. CNG can also be used in conjunction with another fuel, e.g. diesel or petrol (bi-fuel vehicles). NGVs are becoming popular around the world, in response to high fuel prices and environmental concerns.

Prof. Nwaozuzu, a Petroleum Policy Expert & Deputy-Director, Emerald Energy Institute, wrote from University of Port Harcourt

BETWEEN OGAH AND IKPEAZU

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he Federal High Court sitting at Abuja on Monday, June 27, 2016, delivered a judgment in a pre-election matter instituted by one Mr. Samson Uche Ogah of the Peoples Democratic Party (PDP) against Okezie Ikpeazu (also of the PDP) and the Independent National Electoral Commission (INEC). In the said judgment delivered by Justice Okon Abang, Mr. Okezie Ikpeazu who was hitherto the Governor of Abia State was ordered to immediately vacate his office while Abang ordered INEC to issue a certificate of return to Samson Ogah.

Many had thought that with the embattled governor’s victory at the Supreme Court against his fierce opponent – Alex Otti of the All Progressive Grand Alliance (APGA) at last year’s general election, the governor would be free from all legal troubles; but that was not to be.

Mr. Ogah had accused Ikpeazu of submitting false information in his tax clearance certificate to the party during the governorship primaries in the State. Ogah who lost to Ikpeazu in the said primaries headed straight to court to challenge the victory of the governor. His suit was predicated on allegations that some of the information contained in the tax clearance certificate presented by the governor as required by the law for gubernatorial contest were false.

The aggrieved aspirant alleged inter alia that Mr. Ikpeazu paid in one day, the three- year taxes, which clearance papers he was required to include in the nomination form he submitted to PDP to enable him qualify to contest PDP’s governorship primaries in

The law is what the judge says, argues Emmanuel Chikezie Ezeh

Abia State.

The court’s judgment which was the outcome of a protracted suit came as a shocker to many Nigerians particularly, those in the field of law practice. It was indeed an ambivalent déjà vu easily reminiscent of the much criticised decision of the Supreme Court in Hon. Rotimi Amaechi vs. INEC, Celestine Omehia and PDP (2007) 18 N.W.L.R. (Part. 1065).

There seemed to be a subtle consensus and understanding beyond telepathy that it was a party and not the individual that wins an election. The case of Amaechi sufficiently demonstrates that fact.

Briefly, in the said case, Amaechi emerged the winner at the PDP primaries conducted for the Rivers State governorship candidate for the April 2007 elections and his name was accordingly forwarded to INEC on December 14, 2006. His qualification to context was not challenged by anybody but PDP by a letter of February 2, 2007, forwarded Omehia’s name to INEC as the party it was now sponsoring to replace Amaechi. The general election was conducted and Celestine Omehia of the PDP was declared the winner and the certificate of return issued to him by INEC. Meanwhile, an aggrieved Rotimi Amaechi had already filed an action at the Federal High Court challenging his substitution. A thorough examination of the intriguing events that characterised the suit which crisscrossed the appellate courts cannot be accommodated under this work for want of space, but suffices to state that on Thursday, October 25, 2007, the Apex court gave a landmark decision ordering Celestine Omehia to immediately vacate the seat of

the governor and that Amaechi be sworn in his place. Katsina-Alu, JSC, who delivered the lead judgment hinted that the candidate for PDP at the election was Amaechi and although his name was unlawfully removed, in the eyes of the law he remained the candidate. The rest is history.

The decision was largely unpopular in the sphere of public opinion. The dismay hardly has its root in the person of Amaechi, rather it was seen as undemocratic, totalitarian and suffocating. In so far as the masses were concerned, their governor should be that person who was elected by the preponderance of their votes. Declaring another person who did not participate in the contest at the general election and whom they did not have in contemplation while voting, the winner of the election is autocratic, unacceptable and amounts to a brazen usurpation of the will of the masses. Needless to state that the decision was seen as morally reprehensible.

In the face of the fog of discontentment and lamentations that trailed the decision, one easy inference that was “ostensibly” resounded by the decision was the fact that, it was the party and not an individual that wins an election. Thus, if one candidate was declared unfit or unqualified for whatever reason, the party is armed with a retinue of candidates ready to replace him.

Consequently when the Electoral Act 2010, as amended, was enacted, it rode on a widespread eureka reception mainly because of the introduction of section 141.

For avoidance of doubt, section 141 provides as follows: An election tribunal or court shall not under any circumstance declare any Person a

winner at an election in which such a person has not fully participated in all the stages of the said election.

It was a welcome provision. I remember how delightedly people discussed the innovation, particularly those of us in the field of law practice. For one, we would no longer hear such rabid tales as the one in Amaechi’s case.

The turnoff of which we were to discover was the ensnaring provisions of section 133(2) of the act. Section 133(2) in very clear terms defined the terms “court” and “tribunal” in that part to mean: in the case of Presidential or Governorship election, the Court of Appeal; and in the case of any other elections under this Act the election Tribunal established under the Constitution or by this Act. What section 133(2) provides in simple terms is that the Federal High Court, State High Courts and the Supreme Court are not affected by the precluding provisions of section 141. The paradox lies in the realisation that these courts can still make similar findings as that made in Amaechi’s case, thus returning us partly to the status quo ante.

As if that is not enough, the Federal High Court in Suit No: FHC/ABJ/CSI/2011 between Labour Party and Attorney General of the Federation, in exercise of its judicial powers under section 6(6) of the 1999 Constitution of the Federal Republic of Nigeria, as amended, in a decision delivered on July 21, 2011, annulled the provisions of section 141.

Ezeh, a legal practitioner, wrote from Lagos

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T H I S D AY • TUESDAY, AUGUST 16, 2016

EDITORIAL THE EXECUTION IN INDONESIA

T

Government must get serious about containing the trafficking in hard drugs

hree Nigerians were among the four convicted drug traffickers recently executed in Indonesia. The execution of 10 others was reportedly delayed to “avoid any mistake”. While we do not know the identities of those 10 given temporary reprieve, it is important for the Nigerian authorities to find out if our nationals are among them and to offer help, especially since doubts have already been created about their culpability by the Indonesian authorities.

However, this latest execution came against the backdrop that the Senate, only recently, debated a motion entitled: “Nigerians’ involvement in illicit global drugs trade and increase in domestic drug abuse by Nigerian youth.” According to Senator Gbenga Ashafa, some 153 Nigerians would soon be executed in some Asian countries for trafficking in illicit drugs. The senator representing Lagos East rightly observed that “our nationals are viewed with suspicion and subjected to THE SCALE OF THE demeaning treatment PROBLEM AND THE at airports across the CONSEQUENCES FOR world as a result of this OUR IMAGE, NATIONAL negative perception”.

SECURITY AND PUBLIC It is indeed HEALTH ARE SO SEVERE noteworthy that late THAT SOMETHING MUST last year, a human BE DONE URGENTLY rights organisation, Legal Defence and Assistance Project (LEDAP), announced that about 300 Nigerians were on death row in prisons across Asian countries. According to LEPAD, about 16,500 Nigerians were being held abroad while most of those on death row were convicted of drug-related crimes.

Even if there are discrepancies in the figures, the revelations highlighted the increasing desperation of some Nigerians in the narcotic trade. In spite of frequent arrests and stiff punishment as well as sophistication in technology to combat the illegal business, many Nigerians are still not willing to let go. It has been revealed that

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EDITOR-IN-CHIEF/CHAIRMAN NDUKA OBAIGBENA GROUP EXECUTIVE DIRECTORS ENIOlA BEllO, KAYODE KOMOlAfE, ISRAEl IWEGBU, EMMANUEl EfENI, IJEOMA NWOGWUGWU GROUP FINANCE DIRECTOR OlUfEMI ABOROWA DIVISIONAL DIRECTORS pETER IWEGBU, fIDElIS ElEMA, MBAYIlAN ANDOAKA, ANThONY OGEDENGBE DEPUTY DIVISIONAL DIRECTOR OJOGUN VICTOR DANBOYI SNR. ASSOCIATE DIRECTOR ERIC OJEh ASSOCIATE DIRECTORS hENRY NWAChOKOR, SAhEED ADEYEMO CONTROLLERS ABIMBOlA TAIWO, UChENNA DIBIAGWU, NDUKA MOSERI GENERAL MANAGER pATRICK EIMIUhI GROUP HEAD fEMI TOlUfAShE ART DIRECTOR OChI OGBUAKU II DIRECTOR, PRINTING PRODUCTION ChUKS ONWUDINJO TO SEND EMAIL: first name.surname@thisdaylive.com

many of these Nigerians usually paraded themselves as university students to undermine the visa system in the bid to enter Malaysia, Indonesia, Thailand and other drug traffic routes. Over 30 out of 80 foreign students arrested in Malaysia in 2015 were reportedly Nigerians.

That perhaps explains why across the world today, several Nigerians are on death row or serving prison terms and creating an enormous image problem for the country. In many countries, especially in Asia, it is public knowledge that trafficking in hard drugs carries the ultimate sentence. In June 2008, two Nigerians were executed in Indonesia for trafficking in illegal drugs. The same fate befell one Chibuzor Vituz in China in 2009.

In a sensational outing in April 2015, four Nigerians convicted of drug trafficking were executed along with other nationals by Indonesian authorities via firing squad. The Public Communications Division of the Nigerian Ministry of Foreign Affairs gave the names of the executed Nigerians as Martin Anderson, Okwudili Oyatanze, Jaminu Abashin and Sylvester Obiekwe.

Pleas for leniency by Nigeria, the United Nations and Amnesty International were reportedly downplayed by the Indonesian government partly because “at that point, seven fresh cases of drug trafficking involving Nigerians had just emerged in Indonesia”.

Yet the huge numbers of drug mules still jetting out of the country means the enforcement agencies still have a lot work on their hands. This is in addition to the fact that Nigeria is increasingly becoming a destination for narcotics in its own right. In the past few years, the use of illicit drugs has been widespread and many of our young citizens are increasingly getting addicted.

The Senate specifically has called for the restructuring and repositioning of the National Drug Law Enforcement Agency (NDLEA), the agency saddled with curbing the crime, to be more effective. Indeed, some of its staff were reportedly compromised in the past while the agency has long argued that it is understaffed and ill-equipped. But the scale of the problem and the consequences for our image, national security and public health are so severe that something must be done urgently.

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

THE IDPS AND IMPUNITY “In near future the World will suffer above all from distrust.”-Le Comte Du Nouy.

It was from Mr. Yomi Odunuga’s social media page that I got the latest information about the adverse effect of malnutrition on children in the North-East states of Yobe, Borno, Adamawa, and Taraba, Sates whose ancestral homes have been destroyed by the seven- year -old insurgency.

The last time these human catastrophes happened in Nigeria’s recorded history was during the Nigeria /Biafra war in the later part of 1960’s when the then federal forces imposed an inhumane food blockades against the Biafran Republic in the old Eastern Region. This diabolical policy led to massive malnutrition of children, known as Kwashiorkor, in which over three million children were left to die.

Mr. Odunuga who is a senior editor of one of Nigeria’s national newspapers was simply calling attention to the plight of these unfortunate children in the North-East and I think he also posted photos of the humanitarian work of some Nigerian celebrities. These Nigerians have out of their own mobilised resources and relief materials to render the life-saving interventions in favour of these hundreds –of-thousands of Nigerian children

in the North-east who are threatened by severe malnutrition.

The issues around the cases of severe malnutrition of the children of North-East of Nigeria have indeed attracted the attention of the international community. Global watchdogs such as the United Nations Agency for Children (UNICEF), Food and Agricultural Organisation (FAO) and some reputable United Kingdom’s based print media have already published extensive research materials on the increasing cases of malnutrition of these internally displaced children.

Particularly, the British tabloid known as Telegraph even wrote a series of wellarticulated pieces highlighting the alleged diversions of relief materials donated by the home government in the affected and devastated communities in the North- east.

The Presidency saw and interpreted the allegations from a different perspective.

Even whilst the presidency has disagreed openly with the foreign publication, a senator representing the people of Borno South, Mr. Ali Ndume, has accused the government contractors of diverting over 50 per cent of grains from Nigeria’s strategic grains reserves.

President Muhammadu Buhari had

ordered that the grains be directly distributed to the internally displaced and severely malnourished persons of the North- East, but officials of government connived with contractors to steal them. Ndume hinted that the said contractor have already been arrested by the Economic and Financial Crimes Commission (EFCC) and has started singing like a bird from the EFCC’s cell. The theft of relief materials belonging to internally displaced persons is massive; so it’s not just a contractor that has diverted them.

There is surely a sophisticated syndicate deeply entrenched in those regional government. The EFCC or the relevant law enforcement agency should go deeper than this shadow chasing and government magic.

On July 19, 2016, the UNICEF issued a warning about the imminent demise from malnutrition of over a quarter of a million children in Borno State alone if no concrete steps were adopted by the country to mitigate the tragedy. It stated that as more areas in the northeast become accessible to humanitarian assistance, the extent of the nutrition crisis affecting children was becoming even more apparent.

Out of the 244,000 children suffering from severe acute malnutrition in Borno this year,

an estimated 49,000 children – almost one in five – will die if they are not reached with treatment.

“Some 134 children on average will die every day from causes linked to acute malnutrition if the response is not scaled up quickly,” said Manuel Fontaine, UNICEF Regional Director for Western and Central Africa. “We need all partners and donors to step forward to prevent any more children from dying. No one can take on a crisis of this scale alone.”

In early 2016, UNICEF appealed for $55.5 million to respond to the humanitarian crisis, but has so far received only $23 million – 41 per cent. As the children’s agency gains access to new areas with vast humanitarian needs in the coming weeks, it expects the appeal to increase significantly.

This is why the impunity of government officials or government appointed contractors who embark on widespread theft of relief materials must be challenged. It is a serious crime against humanity. The Nigerian state must order for investigations so the culprits are arrested, prosecuted and sanctioned by the competent court of law.

Emmanuel Onwubiko, Head of Human rights Writers association of Nigeria

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T H I S D AY • TUESDAY, AUGUST 16, 2016

POLITICS

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

EXECUTIVE BRIEFING

Ondo 2016: Is Jegede the Anointed One? Determined not to gamble with his legacy, there are indications that Governor Olusegun Mimiko of Ondo State may have settled for his immediate past Attorney General and Commissioner for Justice, Eyitayo Olayinka Jegede, as a likely successor. Davidson Iriekpen writes

A

fter months of speculations and intrigues on who might succeed Dr. Olusegun Mimiko as the governor of Ondo State, when he vacates office in February 2017, Mr. Eyitayo Olayinka Jegede (SAN), the immediate past Attorney General and Commissioner for Justice of the state, has finally stepped forward.

Jegede, penultimate week, took a step further to actualise his aspiration when he obtained his expression of interest and nomination form to participate in the November 26 governorship election on the platform of the Peoples Democratic Party (PDP). He obtained the forms in Akure amidst fanfare and solidarity from former colleagues in the state executive council, party leaders, well-wishers, family members and supporters in their hundreds across the 18 council areas of the state.

Speaking after picking the two forms, the former AG said he was overwhelmed with the massive show of love and support by the people of the state, which transcend religious, ethnic and party affiliations, and promised to justify the confidence reposed in him by offering good governance, which will consolidate and improve on the achievements of the Mimiko administration. To confirm Jegede as Mimiko’s likely choice, dignitaries who followed him to the ceremony included the Deputy Speaker of the state House of Assembly, Hon. Fatai Olotu, who led about 10 of his colleagues to the event.

Others were Commissioners for Transport, Nicholas Tofowomo; Culture and Tourism, Femi Adekanmbi; Community Development and Cooperative Services, Mrs. Yetunde Adejanju, Ifedayo Adedipe (SAN), Ambassador Olu Agbi, members of the working council of the party and heads of boards and parastatals.

Speaking with journalists in Lagos last week, Jegede said he wanted to be the next governor of the state because the current challenging times in Nigeria require people with extraordinary

If Jegede finally gets the PDP governorship ticket come August 22, when the party would conduct its primary election, one of the greatest challenges he would face may likely come from the opposition All Progressives Congress (APC). Though the party lost to Mimiko, then of the Labour Party in 2012, having won the presidency last year, it is currently seriously strategising on how to take over Ondo State this time

Jegede...taking a bold step

ideas, adding that he was in a better position to transform the state’s economy.

“I came into the Mimiko government from the inception in 2009 up till when I resigned in July and with all sense of decency, I was actively involved in the achievements of the government. As a result, I am in a better position to continue with our attainments in the health sector, education, agriculture, social services and many more, and even raise the bar if I’m eventually elected the governor of the sunshine state,” the Senior Advocate of Nigeria said.

He promised that his focus if elected would be raving up the economy of the state. “My priority if elected will be the economy. Mimiko has done so well in the areas of healthcare delivery, urban renewal and education. So, I will sustain that momentum and at the same time concentrate on revamping the economy of the state, without necessarily overburdening the people,” he added.

The emergence of Jegede may have however put to rest, speculations about Mimiko’s choice candidate. Among some of his close aides, the scheming over, who succeeds the governor in the last one year has been so intense, thereby causing deep mutual distrust that threatened Mimiko’s camp.

No doubt, the PDP is currently in control of the state but there are fears that the party may lose its grip on the state if it eventually presents “unacceptable” candidate for the election. THISDAY gathered that it is against this background, including the fact that the party is enjoying his legacies and affection in virtually all the local government areas of the state that the governor settled for Jegede as

the choice candidate.

Though the choice of the former AG has not gone down well with some close associates of the governor, who are also interested in the job and are said to have set up structures across the state in pursuit of their ambition, their boss seemed to spoken through his body language and that may be final. Fiercely opposed to Jegede’s likely candidacy is Rotimi Adelola, Secretary to the State Government (SSG).

Apart from the fact that Mimiko is believed to like Jegede, who has been in his cabinet since 2009 and contributed to the success of the government, sources in the state disclosed that the governor’s alleged preference for his former AG was influenced by a national leader from the North-east, where he had lived and practised his law profession for over 26 years during and after his mandatory National Youth Service Corps (NYSC).

Sources further hinted that it was the same national leader that first recommended Jegede to the governor for the position of attorney-general and commissioner for justice of the state eight years ago. The relationship between the political godfather and Jegede dates back to all the years that Jegede spent in the North-east.

The leader is believed to be resuscitating his political structures well ahead of the 2019 presidential elections and is said to be reaching out to associates across the country, while silently putting together a new political party that would comprise of heavy weight across all political persuasions and divides.

In convincing Mimiko to settle for Jegede, the political leader was alleged to have dangled the running mate slot to the outgoing governor. The

offer was simple: “pick Jegede as your successor in return for the vice presidential slot.” As an added bait, the top politician is also alleged to have “made a commitment” to bankroll Jegede’s governorship campaign.

Investigation by THISDAY further revealed that Jegede’s choice was partly to succumb to the yearnings of the people of Akure, who have since 1999 been agitating for the governorship seat. He is also favoured with the clamour by the Akures to present the next governor of the state under the slogan ‘Akure agenda.’

Prominent Akure people, particularly the Deji of Akure, Oba Aladetoyinbo Aladelusi had on several occasions declared that an indigene of Akure should be the next governor and called on the people of the town to support any candidate from the town. He boasted that Akure kingdom which includes Ifedore, Akure South and Akure North local government areas have political voting strength to decide who rules the state.

It was equally revealed that Jegede’s apolitical disposition placed him far above his contemporaries in the choice of candidate. While other members in the Mimiko cabinet were busy setting up structures in the last one year, Jegede was said to have felt unconcerned about his future in government.

Instead, he was preparing to go back to his law practice, a good quality, sources said, drew the attention of the governor to him.

Jegede is considered not to be politician but a technocrat, who would concentrate on governance and leave politics for the governor unlike many others who are full time politicians, who may CONTINUED ON NEXT PAGE

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T H I S D AY • TUESDAY, AUGUST 16, 2016

PERSPECTIVE

Semenitari: An Emerging Face of the South-south Mr. Henry Semenitari, a former Managing Director/CEO of Unity Bank Plc, appears to have his eyes on the political turf, writes Shola Oyeyipo He had remained relatively silent but his profile soars. Mr. Henry Semenitari, the husband of former Rivers State Commissioner for Information and Communication and immediate past acting Managing Director, Niger Delta Development Commission (NDDC), Mrs. Ibim Semenitari, is by every measure a good ambassador of the South-south region and Nigeria at large.

He is reputed to have taken the Unity Bank from a shrinking asset base to the position of seventh largest bank in Nigeria, with shareholders’ fund at N51.2 billion, a move that won him admiration of investors, while he is still being remembered for his giant strides in repositioning the bank. It was, perhaps, his incredible success at the bank that earned him the 2014 Leadership Newspaper Banker of the Year award. He however resigned his appointment after 18 months with the bank in pursuit of other endeavours.

Born on June 29, 1963, Semenitari, who hails from oil rich Rivers State in the Niger Delta region attended Saint Cyprians Primary School, Port Harcourt, Rivers State in 1974. He moved on to Okrika Grammar School, Okrika, Rivers State in 1979, Enitonna High School, Port-Harcourt, Rivers State in 1980 and University of Lagos in 1987.

In furtherance of his academic pursuit, he went to the International Graduates School of Management, University of Navar, Barcelona, Spain in 2000, Harvard Business School, Boston, US for Advanced Management Programme in 2007 and the Cambridge Judge Business School for another advanced leadership programme at the University of Cambridge, Cambridge, United Kingdom.

Today, Semenitari holds a Bachelor of Science Degree in Chemical Engineering from the University of Lagos and a Master in Business Administration (MBA) from International Graduate School of Management, University of Navara (I.E.S.E) Barcelona, Spain. He is an alumnus of the Harvard Business School, Advance Management Programme (AMP173) in Boston, USA. He is also an alumnus of Cambridge Judge Business School, Advanced Leadership Programme (ALP 1), Cambridge University, Cambridge, UK. His banking experience spans over 26 years.

He is valued very consistent and highly experienced in operations, internal control, branch management, credit and marketing, commercial and retail banking, consumer and corporate banking (Energy) and several other aspects of the banking operations.

He had worked in banks such as Zenith, Diamond, United Bank for Africa, ACB International Bank and Continental Trust Bank. He also held senior Management positions in United Bank for Africa (UBA) Plc as an Assistant General Manager – Commercial and Retail Banking Group, General Manager (Credit and Marketing) in ACB International Bank Plc, acting Managing Director/CEO, ACB International Bank Plc and Executive Director (Business Development) in Continental Bank Limited, Afribank Nigeria Plc in May 2003 as General Manager in charge of Consumer and Retail Banking business with

Although he has not really ventured into politics, considering his growing profile, indications are high that his people are beckoning on him to also deploy his wealth of experience to developing his state and the country at large by picking a public office to serve

Semenitari...eyes on the future

responsibility of supervising and development of business activities across the entire 150 branch network. He later joined First City Monument Bank Plc in November 2005 as Executive Director Retail and Enterprise Banking. His job description while there was to develop and grow retail and enterprise banking business across the entire branch network.

That was where he held sway before eventually joining the Unity Bank Plc as non-executive director. He would later become the Managing Director/Chief Executive Officer of the Bank in January 2014.

While at Unity Bank, Semenitari made some remarkable improvements that are still on record today and which won him global accolades. For instance, the bank’s gross earnings grew from N62 billion in 2013 to N77 billion in 2014, the profit before tax grew from negative of N33.6 billion in 2013 to positive of N13.6 billion in 2014 while profit after tax grew from negative of N22.5 billion in 2013 to positive of N10.6 billion in 2014.

The cost to income ratio improved from 28.4 per cent in 2013 to 69.6 per cent in 2014, return

on asset improved from negative 5.7 per cent in 2013 to positive 2.6% in 2014, return on equity improved from negative 56.7 per cent in 2013 to positive 20.5 per cent in 2014, capital adequacy ratio improved from negative 13.8 per cent in 2013 to positive 2.02 per cent in 2014, liquidity ratio improved from 34.5 per cent in 2013 to 44.8 per cent in 2014 and most importantly, the Unity Bank attained the enviable international ‘A3’ global rating by GCR. He established a robust electronic business (E-Business) group in the bank that gave rise to electronic channels transactions. For instance, Point of Sales (POS) transactions grew from 17.5 million transactions in 2013 to 75.3 million transactions in 2014 and ATM transaction grew from 3.3 million transactions in 2013 to 5.7 million transactions in 2014.

Still during his tenure as the MD, non-performing loans (NPL) improved from 25.5 per cent in 2013 to 17.6 per cent in 2014 and the bank also recorded a historical achievement in debt recovery drive by recovering in excess of N10 billion bad debts in 2014 financial year.

Working with other experts in the Unity Bank,

his leadership won several awards, which included European Business Assembly Best Africa Regional Bank Award, Oxford University, England, for year 2014; top 100 businesses in Nigeria Award

by Federal Government of Nigeria; Business Day Newspapers Top Chief Executive Officer Award; Banker of the Year 2014 Award in Nigeria by Leadership Newspaper and Semenitari himself was admitted into the famous Bill Clinton Global Initiative (CGI) in Times Square, New York, USA. In rating Semenitari’s acumen, those evaluating him have always attributed his unique selling point to his strengths in business process reengineering and design with specialisation in strategic process enterprise management, and integration of business process models with information technology to drive business at product and strategic business unit levels.

He also had development and implementation experience of major banking applications such as Micro Banker/Flexcube, Phoenix, Bank Master, SAP (Systems Application and Product), Globus and Finacle Banking Application etc.

Mr. Semenitari is a fully registered Engineer (R.29, 331) and member Council for the Regulation of Engineering in Nigeria (COREN). He is a member the Nigerian Society of Engineers (NSE); Fellow, Institute of Credit Administration (FICA) of Nigeria and member, The Chartered Institute of Bankers of Nigeria (CIBN).

Although he has not really ventured into politics, considering his growing profile, indications are high that his people are beckoning on him to also deploy his wealth of experience to developing his state and the country at large by picking a public office to serve.

ONDO 2016: IS JEGEDE THE ANOINTED ONE? challenge the governor when he leaves office on many issues.

As it is expected, Jegede being from central senatorial district, might face a herculean task in getting supports from the other two senatorial districts due to the fact that the incumbent governor is also from the central senatorial district.

The late Chief Adebayo Adefarati, who was from the northern district, became the governor in 1999 but he was unseated by the late Olusegun Agagu, who was from southern district in 2003.

Agagu spent six years before he was sacked by an Appeal Court sitting in Benin in 2009 and Mimiko, who is from the Central district, was sworn in as governor. Although the rotational system has no constitutional backing, political observers believed that the northern senatorial district should produce the next governor.

Another source informed THISDAY that the governor’s younger brother, Prof. Femi Mimiko, a former Vice Chancellor of the state university and an influential power broker in the state is

not favourably disposed to Jegede’s emergence.

Femi is alleged to be backing Adelola’s aspiration to succeed his brother in 2016. They have both come a long way from their childhood days, sources further stated.

Added to this, THISDAY gathered that both in Governor Mimiko’s camp and the PDP, people of the Ondo North are not happy over the emergence of Jegede.

They had thought that having served eight straight years, the governor would rotate the zoning formula back to them. Among those said to be disenchanted are the people of Owo and Ose. The only governor to have come from the zone, Adefarati served one term. Besides, he is from the Akoko part of the northern senatorial district.

But reacting to claims that his ambition will disrupt the zoning arrangement among the three zones – north, central and south – in the state since he is from the same central senatorial zone as the incumbent, he also said zoning

has never been a consideration for electing governors in the state.

“Election in Ondo State is never won on the basis on zoning but on merit. Argument about zoning is being planted and spread by small people, who don’t believe in merit. It is an argument that is deceptive and should be discountenanced by those who want the best for the state. Competence, efficiency and integrity should be the requirements and those are what I am offering.

“My governorship ambition is not an ethnic agenda; it is Ondo State agenda. The real voters don’t know zoning; it is a contraption of some politicians, who are afraid of merit. I see myself basically as somebody from Ondo State, somebody interested in service.

“The argument against me is that I come from the central zone and that I am not a politician.

But rather than being a minus, those are my strengths because integrity and merit are going to count. I have these and I am bringing them

on board in the interest of the generality of the entire people of Ondo State.”

Sensing that the governor might disappoint them due to his body language, his camp has been suffering some high profile defections, a development that reportedly caught him napping. Prominent among the defectors are a senator in the seventh National Assembly, Senator Patrick Akinyelure and the DirectorGeneral of the Technical Aids Corps, Dr. Pius Osunyikanmi, both of whom announced their decisions to quit the PDP some days ago along with their supporters.

If Jegede finally gets the PDP governorship ticket come August 22, when the party would conduct its primary election, one of the greatest challenges he would face may likely come from the opposition All Progressives Congress (APC).

Though the party lost to Mimiko, then of the Labour Party in 2012, having won the presidency last year, it is currently seriously strategising on how to take over Ondo State this time.

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TUESDAY, AUGUST 16, 2016 • T H I S D AY

FEATURES

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

Legislative Agenda for Climate Change Stakeholders recently met in Abuja at a roundtable organised by the National Assembly Joint Committee on Climate Change to discuss feasible steps towards the implementation of the Paris Agreement, in order to mitigate against the effects of climate change in Nigeria. Damilola Oyedele writes

The receding Lake Chad Basin

D

eveloping countries like Nigeria have been said to be suffering the effects of climate change, much more than the developed nations whose advanced technologies contribute more to the destruction of the ozone layer. It is necessary to note that several archaic practices such as gas flaring and bush burning, which still occur in Nigeria, significantly destroy the environment.

Climate change threatens development across all sectors of national economy. It contributes to drought, floods, food and water scarcity, damages critical infrastructure.

A culmination of these and other effects result in various forms of insecurity, such as the now rampant farmers/herdsmen clash.

Previous agreements for climate change, such as the Kyoto Protocol were not adequate for mobilising global action, which is the only way to protect and restore the environment.

The Paris Agreement, which was adopted last year, and open for signatures and ratification by states is expected to address the inadequacies of the Kyoto Protocol. 74 countries, excluding Nigeria have signed the agreement, while 19 others have ratified it.

Nigeria withheld signature due to the need for internal consultations, but the country has pledged to work with other African countries, on the environment.

The agreement seeks to keep temperatures

below two degree celsius, provide more

Climate change threatens development across all sectors of national economy.

It contributes to drought, floods, food and water scarcity, damages critical infrastructure. A culmination of these and other effects result in various forms of insecurity, such as the now rampant farmers/ herdsmen clash

than $100 billion in support from developed countries to their developing counterparts, and increase support for technology transfer and capacity building.

Nigeria’s Intended Nationally Determined Contributions (INDC) target emission reductions of 20-45 per cent by the year 2030, by working towards economy wide energy efficiency, efficient gas power stations, working towards ending gas flaring, climate smart agriculture, reduction of transmission losses, and renewable energy.

Crucial Roundtable To this end, the Senate and House of Representatives Committees on Climate Change recently held a roundtable with climate impacted Ministries, Departments and Agencies of government, to discuss concrete and verifiable preparations towards the implementation of the Paris Agreement.

Participants at the one day meeting discussed the steps being taken to ensure Nigeria meets the targets it has set for itself, its preparations for 2016-2020, and in particular, how the National Assembly can assist the relevant MDAs achieve their mandates.

Participants at the conference included lawmakers, officials of the United Nations Development Programme, Ministry of Environment, and relevant agencies.

The Chairman of the House Committee on Climate Change, Hon. Sam Onuigbo,

representing Ikwuano/Umuahia North/ Umuahia South Federal Constituency, in his address said the roundtable was borne out of the need to create and cement partnerships which are critical to the climate challenge.

“I want to categorically say here that this 8th NASS is determined to do whatever it takes to help MDAs surmount our climate challenge.

We in the NASS understand that dimensioning climate change risks to Nigeria’s economy would reveal opportunities to be harnessed for holistic and dynamic systems approach for supporting and sustaining gains already made by our economy,” Onuigbo said.

The lawmaker added that Nigeria cannot afford to lag behind in fight to secure the environment for future generations, and should not be out-paced in regional and international actions that are required to create sustainable and climate-friendly solutions.

“Consequently, it is absolutely necessary that you factor these ambitious NDCs and the President’s commitment into your 2017 budget proposals in order to accommodate some of the new challenges, especially as they affect the NDCs. Mainstreaming climate change into 2017 budgetary proposals is particularly necessary to plug likely gaps and to lay solid foundation for the actualisation of the overall aim of the NDCs. Essentially,

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• T H I S D AY TUESDAY, AUGUST 16, 2016

FEATURES we would be demanding accountability on this when the CI-MDAs come before our committee to defend their 2017 budgets.

“Let me be clear: The Standing Orders of the House of Representatives clearly empower the HRCCC to ensure legislative scrutiny and oversight over treaties and agreements that are likely to arise from coordinated efforts under the UNFCCC. The mission of the HRCCC has been to, through legislative intervention in line with the NASS Legislative Agenda, promote resource allocation to climate-friendly programmes that will enhance Nigeria’s resilience to climate impact across all the economic sectors,” Onuigbo added.

The Country Director of the United Nations Development Programme (UNDP), Dr. Pa Lamin Beyai, called on Nigeria to take advantage of the opportunities offered by the Paris agreement.

He however noted that the potential can only be harnessed through legislation and effective oversights, that would facilitate successful implementation of national policies aimed at addressing the adverse effects of climate change.

“It would serve to ensure the efficient use of scarce resources that would lead to job creation, poverty reduction and prosperity that leaves no one behind, all of which are pillars of the green economy and Sustainable Development Goals (SDGs),” he said.

“Thus it is crucial that the National Assembly be better equipped to appreciate the impact of climate change on the economy, the imperative of reducing ecological scarcity and environmental risks and why adequate budgetary appropriation for climate responses and activities is required,” Beyai added.

The Deputy Director, Climate Change, in the Ministry of Environment, Dr. Tarfa Yerima, speaking while he made a powerpoint presentation, harped on the need for an inter-ministerial cooperation for effective governance on climate change.

He listed some of the benefits which the country stands to gain from an effective implementation of the Paris agreement to include; increased productivity through crop intensification, halt of deforestation, improved management of water resources, reduced flaring emissions, recover energy for use in economy, improve mass transit, reduce congestion of roads, and reform of petrol and diesel sectors.

He called for the urgent restoration of

Thus it is crucial that the National Assembly be better equipped to appreciate the impact of climate change on the economy, the imperative of reducing ecological scarcity and environmental risks and why adequate budgetary appropriation for climate responses and activities is required

Minister of Environment, Amina Mohammed, exchanging pleasantries with Chairman House Committee on Climate Change, Hon. Sam Onuigbo, at a roundtable organised by the National Assembly Joint Committee on Climate Change...recently

L-R: Chairman, Senate Committee on Ecology and Climate Change, Senator Bukar Abba Ibrahim and Chairman, House Committee on Climate Change, Hon. Sam Onuigbo, at the event

Lake Chad, to save the estimated 20 million Nigerians who depend on its water and environmental resources, and the push for Nigerians to harness solar and wind energy as power sources.

Conclusion As Yerima noted, Nigeria’s success in implementation of the Paris agreement would be measured by how its national policy actions comply with the agreement.

The first step however has to be the sign-

ing and ratification of the agreement, and legislation on climate change that would ensure funding and implementation.

Climate change standards and enforcement regulatory bodies have to work to ensure that carbon emissions are significantly reduced.

20

IMAGES

T H I S D AY • TUESDAY, AUGUST 16, 2016

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

L-R: Missionary-in-Charge, Cameroon, Niger and Equatorial Guinea, Maulvi Abdulkhalique Nayyar; Amir Sahib, Ahmadiyya Muslim Jama’at Nigeria, Dr. Mashhud Adenrele Fashola and the Head, Media and Coordinator, Muslim Television International (MTI), Nigeria Studio, Mr. Qasim Akinreti, during the National Congress of Ahmadiyya Muslim Jama’at, at Hampshire, United Kingdom,..recently

L-R: Head, Marketing and Corporate Communications, FBN Merchant Bank, Lolade Balogun; Head, Media and Publicity, Eti-Osa Youth Development Initiative , Razaq Ivori; Executive Director, FBN Merchant Bank Gboyega Fatoki; and President, Eti-Osa Youth Development Initiative ; Deji Laurent, during the FBN Merchant Bank sponsored Eti-Osa Youth Development Initiative ë Pick-A-Litter’ Campaign, in Lagos recently.

L- R Omoba Doyin Okupe ( Son) Mrs Yemisi Okupe and Mrs Iyabo Okupe, during the funeral service for Olori Adelphine Ajoke Okupe at All Saint Anglocan Church Yaba Lagos...recently

Governor of Akwa lbom State, Udom Emmanuel(right) and General Superintendent, Deeper Christian Life Ministry, Pastor William Kumuyi during the Governor’s worship at the International Bible Training Centre (IBTC), Ayobo in Lagos...recently

L-R: chairman, Motor Mechanics & Technicians Association of Nigeria (MOMTAN), Moruf Arowolo; CEO, Oando Marketing Ltd, Awobokun Abayomi; chairman, Nigerian Automobile Technician Association (NATA), Lagos State, Jacob Omonide Fayeun; COO, Oando Marketing Ltd, Olaposi Williams; and Sector Head, Special Marshals, Federal Road Safety Commission, Lagos, Bridget Asekhauno, at the induction ceremony for 500 mechanics into Oando’s Oleum Academy 2016 in Lagos recently.

L-R: Permanent Secretary, Ministry of Health, Ondo State, Dr. Taiye Oni; Chairman, Hospital Management Board, Dr. Niran Okunrinboye; Director, Regulatory and Corporate Social Responsibility (CSR), Etisalat Nigeria, Ikenna Ikeme; and Executive Secretary, Ondo State Health Care Development Board, Dr. Olugbenga Osunmakinwa, at the official presentation of Infant and maternal health equipment donated by Etisalat to Ondo state Government in Akure recently.

L-R, Communications Manager, Erhumu Bayagbon; Head, Youth Segment, Omoyeme Effiong and Vice President, Network Operations, Adedoyin Adeola, all of Airtel Nigeria, at the Smart Trybe Party held at Victoria Island, Lagos on Friday.

L-R: Founder, Nigerian Students Fashion and Design Week (NSFDW), Orimolade Abiola; Head, Brand Marketing Communication, Wema Bank Plc, Onome Odili; Creative Director, AshiillaRozae and Winner 2016 NSFDW, Rosie Edinen and Cece Designer and 1st Runner up 2016 NSFDW during the 2016 NSFDW at the University of Lagos on Saturday August 13,

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T H I S D AY • TUESDAY, AUGUST 16, 2016

BUSINESSWORLD NIBOR OVERNIGHT 1-MONTH

R A T E S 9.9167 16.8486

3-MONTH 6-MONTH

A S 18.1319 20.1021

A T

NITTY 1-MONTH 2-MONTH 3-MONTH

Group Business Editor ChikaAmanze-Nwachuku Email: chika.amanzenwachukwu@thisdaylive.com 08033294157, 08057161321

A U G U S T 14.8965 15.4858 16.4897

6-MONTH 9-MONTH 12-MONTH

1 2 , 18.6188 19.2956 21.3886

2 0 1 6

EXCHANGE RATE N332.07/1 USDOLLAR* *AS AT LAST FRIDAY

Quick Takes Venezuela Minister Visits Oil Producers

Venezuelan Oil Minister Eulogio Del Pino on Saturday commenced a tour of OPEC and non-OPEC countries as part of an effort to reach consensus among oil-producing countries on a strategy for boosting crude prices, President Nicolas Maduro said on Friday.

Cash-strapped Venezuela has for months sought to rally producers toward an agreement to limit production as a way of controlling a global supply glut, but major oil exporters appear more focused on preserving market share than raising prices. “Tomorrow he leaves on an OPEC and non-OPEC tour,” Maduro said in a televised broadcast, without detailing which countries Del Pino would visit.

“I call on all energy players in the world, OPEC, non-OPEC ... so that we can really get to work on this,” he added.

He said $70 per barrel would be “reasonably fair” and called it a “necessary and easily obtainable goal.”

Foreign Minister Delcy Rodriguez will accompany Del Pino on the tour, Maduro said.

Russia, the world’s largest oil producer, said on Monday it does not see any ground for new talks on freezing oil output but said it was open to negotiations.

Oando to Train 500 Mechanics

BUSINESS HANDSHAKE

L-R: General Manager, Cummins Power Generation, Mr. Daniele Sechi and acting MD/CEO, Nigerian Bulk Electricity Trading (NBET), Mr. Waziri Bintube at the initialling of the Gas PPA in Abuja …recently

NNPC, IOCs Undertake Audit of Nigeria’s Joint Venture Assets Chineme Okafor in Abuja The Nigerian National Petroleum Corporation (NNPC) said that it has commenced the audit of Nigeria’s joint venture (JV) assets in collaboration with the international oil companies (IOCs), with a view to determining the current real value of the assets.

The corporation also stated that its ongoing review of the Production Sharing Contracts (PSCs) would soon be concluded to help the country negotiate favourable PSC terms afterwards.

According to the June 2016

ENERGY monthly financial report of the corporation’s activities, Nigeria produced a total of 52.34 million barrels of oil and condensate, representing a daily production peg of 1.69 million barrels and 12.12 per cent drop in production for the penultimate month.

The report, which was released recently in Abuja, further stated that within the period, PSC share of the country’s production was the highest at 52.29 per cent, followed by joint venture – 27.63 per cent.

Crude oil production from

Alternative Finance, Nigerian Petroleum Development Company (NPDC) and independents represented 12.82 per cent, 2.23 per cent, and 5.03 per cent respectively.

“The Corporation is collaborating with IOCs to carry out value-for-money audit on all the federation’s joint ventures with a view to business process improvement on projects execution.

“NNPC is also currently reviewing existing Production Sharing Contracts (PSC) to negotiate more favorable terms and improve the revenue base to the federation,” said a section

of financial report.

The report further explained : “A total of 52.34 million barrels of crude oil and condensate was produced in the month of May 2016, representing an average daily production of 1.69 million barrels.”

“This represents a decrease of 12.12 per cent compared to April 2016 performance. Of the May 2016 production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 27.63 per cent and 52.29 per cent respectively. While Continued on page 24

Motorists Give NIPCO Ultimatum to Revert to Old Gas Price Ejiofor Alike Aggrieved motorists in Edo State, who use Compressed Natural Gas (CNG) to power their vehicles, have given NIPCO Plc a 21-day ultimatum to revert to the old price of the product or they would switch over to petrol, THISDAY has gathered.

The motorists had shutdown NIPCO’s seven CNG Filling Stations in Benin after the company increased the gas price from N55 per standard cubic meter to N95 per standard cubic meter for commercial vehicles.

For private cars, the company had also increased the gas price from N80 per standard cubic meter to N120 per standard

ENERGY cubic meter.

The motorists, who had shutdown the company’s seven stations in Benin for several days, accused the company of sabotaging the efforts of President Muhammadu Buhari’s administration and the Nigerian National Petroleum Corporation (NNPC) to encourage the use of gas as vehicular fuel.

The motorists at the weekend gave NIPCO a 21-day ultimatum to revert to the old price or they would switch over to petrol as earlier advised by the company.

One of the motorists, who spoke to THISDAY, accused the company of removing

the posters containing their demands, which they pasted on the company’s seven stations in Benin.

“They lured us with incentives to convert to gas and after we converted to gas, they increased the price and asked us to go to hell. We won’t go to hell but we won’t use the gas. No matter, what it will cost us, we will switch over back to petrol, unless they revert to the old price which was the basis of the contract we entered with them to use gas,” he said.

As part of the moves to sensitise all the users of CNG, some of the motorists, who negotiated with the company on behalf of others, have issued

a four-point position obtained

by THISDAY, showing that at the expiration of the 21 days, they would embark on: “road show protest round the streets with black hat on every vehicle using gas in Benin; operation take your kit and give me my money; gas always damage our engine and boot; prepare for the next protest ahead.”

NIPCO and the Nigerian Gas Company (NGC), a subsidiary of the NNPC had formed Green Gas Limited (GGL), a joint venture, which built CNG Filling Stations to sell gas to motorists.

When contacted on the development, NIPCO’s Manager Continued on page 24

As part of its commitment to empower and train mechanics, Oando Marketing has commenced the third edition of its Oleum Academy Initiative, where 500 mechanics will be trained in 2016.

The programme was launched to bridge the identified gap between the number of professional mechanics and the requisite skills needed in the Nigerian auto-mechanic industry.

The initiative witnessed the induction of 500 mechanics at a ceremony held in Lagos early this month.

Through the Oleum Academy initiative, Oando marketing aims to build a crop of emerging entrepreneurs who are set to dominate Nigeria’s automobile space.

Launched in 2014, the Oleum academy was designed to support the alternative learning and skills development project, an initiative of the African Development Bank which provides high quality vocational training and mirrors the Millennium Development Goals (MDGs) for poverty reduction and the development strategy in the country.

Selected participants were shortlisted through nominations on online media platforms and by recognised mechanic associations; Nigerian Automobile Technician Association (NATA), and Motor Mechanic and Technician Association of Nigerian (MOMTAN).

Speaking on the initiative, the CEO of Oando Marketing Limited, Yomi Awobokun said, “Oleum Academy is aimed at improving the expertise level of Nigerian Auto-mechanics and ensuring the skill acquisition rate is up to par with the evolution in the auto industry. We expect this project to contribute to the Nigerian economy by creating more opportunities for the mechanics and car owners. We remain committed to the goal to train 5000 mechanics by the year 2020.”

Cummins Launches New Generator Sets

In building on its legacy of technological innovations, performance improvements and reliability breakthroughs, Cummins has launched its QSK95 series Generator sets to provide the most cost-effective, robust power across a broad range of applications.

These high-horsepower generator sets are engineered to deliver more power while realizing best-in-class fuel and footprint economies, fewer maintenance requirements and industry-leading time.

Speaking on the new product, Managing Director Cummins West Africa, Kwame Gyan-Tawiah stated that the company was constantly devising ways to make its customers happy and also help them save cost.

“So far, the request for forex for importation of gasoline, popularly called petrol has been met, and our own supply situation is robust” Group Managing Director of NNPC, Dr. Maikanti Baru

22

T H I S D AY • TUESDAY, AUGUST 16, 2016

BUSINESSWORLD NNPC, IOCS UNDERTAKE AUDIT OF NIGERIA’S JOINT VENTURE ASSETS

AF, NPDC and Independent accounted for 12.82 per cent, 2.23 per cent and 5.03 per cent respectively,” it added.

It further stated that the NPDC cumulative production to date figure – from June 2015 to May 2016, from all fields amounted to 30,779,729 barrels which translated to an average daily production of 84,098 barrels.

“Comparing NPDC performance to national production, the company production share amounted to 2.23 per cent.

NPDC production continued to be hampered by the incessant pipeline vandalism in the Niger-Delta.

“NPDC is projected to ramp-up production level to 250,000 barrels per day (bpd) after the completion of the on-going NPDC rekitting project and repairs of vandalised facilities,” it stated.

“Production from assets operated by the NPDC amounted to 10,382,016 barrels or 33.73 per cent of the total production with Okono Okpoho (OML 119) alone producing 82.74 per cent of the NPDC’s operated output or 27.91 per cent of the total NPDC total production.

“Also on the NPDC operated JV assets, in which NPDC own 55 per cent controlling interest, crude oil production amounted to 11,570,117 barrel or 37.59 per cent of the NPDC total production.

On the non-operated assets, production level stood at 8,827,596 barrels or 28.68 per cent of the company production,” the report explained.

MOTORISTS GIVE NIPCO ULTIMATUM TO REVERT TO OLD GAS PRICE

in charge of the CNG Stations, Mr. Stephen Anyanwu told THISDAY that he was not competent to speak on the matter. NIPCO’s Head of Human Resources, who had negotiated with the motorists, Mr. John Okpeku had told THISDAY that motorists were free to switch over to petrol if they did not want to use gas to fuel their vehicles because of the increase in price.

Group Business Editor

Chika Amanze-Nwachuku AgriBusiness/Industry Editor

Crusoe Osagie

Comms/e-Business Editor

Emma Okonji

Capital Market Editor

Goddy Egene

Senior Correspondent

Raheem Akingbolu (Advertising) Correspondents

Chinedu Eze (Aviation) Linda Eroke (Labour) Eromosele Abiodun (Maritime) Ejiofor Alike (Energy) James Emejo (Nation’s Capital) Obinna Chima (Money Mkt) Reporters

Nume Ekeghe (Money Market) Nosa Alekhuogie (Cap Mkt)

NEWS

TCN Seeks Public Support against Vandalism of Transmission Facilities Stories by Ejiofor Alike The Transmission Company of Nigeria (TCN) has appealed to the public to be vigilant and report acts of vandalism and other illegal activities around power installations and equipment to law enforcement agents. Reacting to a recent act of vandalism on the 132KV Shiroro/Tegina/Kontagora Transmission Line, the company also warned vandals to steer clear of transmission equipment across the country.

It reiterated that apart from being acts of sabotage, there is grave danger inherent in vandalism of power installations.

TCN’s General Manager in charge of Public Affairs, Mrs. Seun Olagunju, revealed that a suspected vandal was recently electrocuted and charred while carrying out the nefarious act on the Shiroro/Tegina/ Kontagora 132 kV transmission line. According to the statement, the vandals had successfully cut the Skywire at Tower 187 and proceeded to Tower 188 along the transmission line where one of them was electrocuted.

“The Police was consequently invited to the scene of the incident and the corpse was removed while investigations are on-going. The cut skywire was removed and the line restored,” the statement added.

The company appealed to the public to be vigilant and report questionable and illegal activities around power installations and equipment to law enforcement agents.

It noted that this will ensure effective power wheeling for

national development which TCN is continually committed to. Apart from TCN, some of the distribution companies had raised the alarm on the rising cases of vandalism on their networks.

The Port Harcourt Electricity Distribution Company (PHED) had recently apprehended a suspected cable vandal, Ikake Kingsley, who attempted to steal electricity cable at Ikot Ekpene, Akwa-Ibom State.

Before the Ikot Ekpene incident, three cases of elec-

tricity theft and vandalism of transformer armoured cables were reported in Uyo town in three different areas.

The efforts of the Enugu Electricity Distribution Company (EEDC) to curb vandalism of cables and transformers had paid off recently with the conviction of three persons for acts of vandalism.

According to a recent statement issued by company, three accused persons were arrested by the Police in Abakaliki, Ebonyi State and subsequently ar-

sentenced Ndubuisi Ogbonnia and Chinedu Gabriel (first and second Defendants) to a jail term of three years on the first count of conspiracy.

On the second count of vandalism, the Judge sentenced the first Defendant, Ndubuisi Ogbonnia to a jail term of four years, while the second Defendant, Chinedu Gabriel was sentenced to serve a six -year jail term. The statement added that the sentences are to run concurrently with effect from date of first custody.

COURTESY VISIT

Managing Director/Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim (left), presenting NDIC branded souvenirs to the MD/CEO, Jaiz Bank Plc, Hassan Usman during a courtesy visit by the Jaiz Bank Plc management team to the Corporation in Abuja…recently

IPMAN Partners NIMEX Petroleum on Fuel Importation As part of the efforts to ensure that the current high cost of foreign exchange does not plunge the country into fuel crisis, the Obasi Lawsonled Independent Petroleum Marketers Association of Nigeria (IPMAN) has entered into strategic partnership with NIMEX Petroleum Group to import 100,000 metric tonnes of petrol to sustain availability of product to IPMAN members.

In a statement released after the signing of Memorandum of Understand (MoU) with NIMEX Petroleum Group, the National President of IPMAN, Mr. Lawson Obasi said the product, which would be imported by NIMEX Petroleum Group, would be distributed to IPMAN members across the country to argument supply from Nigerian National Petroleum Corporation (NNPC) and other sources.

The IPMAN president said the partnership would go a long way to make petrol available in the country, adding that the quantum of petrol received from NNPC was not sufficient for IPMAN members.

According to Lawson, the NIMEX Petroleum Group was founded by an astute

raigned, tried and convicted for crimes ranging from conspiracy, vandalising armoured cables and transformers belonging to the company.

Two of the accused persons – Ndubuisi Ogbonnia (18 years), and Chinedu Gabriel (21 years) were prosecuted at the Federal High Court, Abakaliki, where they both pleaded guilty to the two count charge of conspiracy and vandalism of cables .

Delivering her judgment, the presiding Judge, Hon. Justice M. A. Onyetenu (Miss), had

German Businessman, and a global name in the provision of solid services in the petroleum sector, Mr. Azmat Mahmoud.

“NIMEX Petroleum Group with a global footprint in more than 15 countries in Africa has garnered three decades experience in the provision of solid services in petroleum-related trading and in fostering relationships globally recognised and aimed at delivering consistent value for its patrons.

It is in recognition of this global reach by NIMEX, that IPMAN has decided to partner with it in order for it to bring its huge experience to support IPMAN in capacity building in the strategic area of satisfying the growing needs of its members for availability of petroleum products,” Lawson added.

He commend the Minister of State for Petroleum, Dr. Ibe Kachikwu, and the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru for their efforts to ensure that products are available for the consuming public in spite of the grave challenges facing the sector.

Lawson said that this stra-

tegic relationship established with NIMEX Petroleum Group would also help to improve the supply chain of petroleum product in the country.

“IPMAN has partnered Nimex Petroleum Group to import over 100,000 metric tonnes of petroleum product into the country to quash market forces and compliments government effort.

With membership of well over 10,000 marketers across the length and breadth of Nigeria, IPMAN has over the years grown to control well over 87 per cent of the petroleum products retail outlets in Nigeria with a reach that auspiciously spreads to every nook and cranny of the country.

This commendable spread

by IPMAN members in the establishment of retail outlets across the country necessarily requires a steady supply of petroleum products in order for its positive effect to be felt both by government and Nigerians,” he explained.

Speaking on the partnership, the President of NIMEX Petroleum Group, Mr. Kanwar Ratra said his company was prepared to satisfy the yearnings of IPMAN members.

FG Recognises Jordana USA Products as Owner of ‘JORDANA’ Trademarks in Nigeria Crusoe Osagie The federal ministry of industries, trade and investments has through its commercial laws and ethics department, confirmed Jordana USA Products Nigeria Limited, a subsidiary of Eugenco Intercontinental Cosmetics Group as the only company recognised by law to use, market or trade with the name ‘JORDANA’ as its registered Trademark anywhere in Nigeria.

This exclusive right of ownership came with the issuance of Trademarks Certificate No.004247 in respect of the ‘Jordana’ range of cosmetics and other allied products, and was duly collected by the chief executive officer of Jordana USA Products Limited, Chief Eugene Akubue who thanked the ministry and promised to uphold his company’s philosophy of being law abiding with decent practices for which the coveted document was given.

While displaying the trade mark certificate before journalists in his office recently, Akubue also noted that “We live in a country where people want to reap where they did not sow . Consider the huge monetary and other forms of challenges we encountered trying to introduce and establish a completely

new and unknown product in the Nigerian market since 2003.

From registration to promotions which include media, doorto-door sales with sampling, then you hold seminars; attend exhibitions and so on and on.

The expenditure is so enormous running above N250million during the thirteen years period.

Therefore, anybody can notice that the future of the brand in the country is very fantastic and decide to start circulating similar or fake make-ups with the same name as Jordana USA. Truth is that we are Jordana USA and the original owners of the trademark. This certificate is our proof”.

Despite the heat and frustrations generated by the struggle, the Eugenco’s boss says he was excited over the hidden benefits of this type of competition which he describes as blessing in disguise: “I am glad that this war of supremacy has turned into a sort of blessing in disguise because, apart from awakening and equipping us to strongly rise in defense of our own, it brought untold popularity to the brands, and the benefits will soon come to us, especially now that we have moved from Lagos Island to our permanent office/show room at Trade Fair Complex.”

23

T H I S D AY • TUESDAY, AUGUST 16, 2016

BUSINESSWORLD

ENERGY

Removing the Cap on Petrol Pricing To address any potential instability in the supply of petrol, which might arise as a result of the increasing challenge of accessing foreign exchange by the marketers, Ejiofor Alike suggests that the federal government should remove the price cap on the product as was done to diesel

T

he federal government took a bold step on May 11, this year, when it adjusted the price of petrol upward from N86.50 per litre to N145 per litre, to reflect the market dynamics, especially the volatility in exchange

rate.

In the circular with reference number A.4/9/017/C.2/IV/690 dated May 11, 2016 and signed by the acting Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mrs. SE Iyoyo, the federal government directed the marketers of petroleum products to sell petrol within the retail price band of N135 to N145 per litre.

The agency also reviewed other components of the pricing template to reflect the new price in what the government had described as appropriate pricing mechanism for petrol.

For instance, while the lightering expenses was increased from N2 per litre to N4.56 per litre, the charges paid by the marketers to the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) were increased from 21 kobo per litre to 84 kobo per litre and 15 kobo per litre to 22 kobo per litre, respectively.

Other components, which were also reviewed upwards include: financing (64 kobo to N2.50 per litre); retailers’ margin (N5 to N6 per litre); dealers’ margin (N1.95 to N2.36 per litre); bridging fund (N4 to N6.20 per litre); transporters margin (N3.05 to N3.36 per litre) and administrative charges paid by marketers to PPPRA (15 kobo to 30 kobo) per litre.

The PPRA had also added that it would continue to “monitor market fundamentals in line with the policy of appropriate pricing with a view to advising marketers on subsequent guiding price band for petroleum products at the beginning of every month.” As laudable as the upward review of the price of petrol was, recent trends in the value of the Naira vis-à-vis the United States Dollar, have shown that the N145 price ceiling would soon explode beyond the rich of consumers unless urgent action is taken to avert another fuel crisis.

Nigerians are supposed to have been enjoying a significant drop in the price of petrol following the slump in the price of crude oil at the international market. From a peak of $115 per barrel in June 2014, crude oil price dropped to a 13-year low of $27 per barrel in January this year before it recovered to the current level of about $44 per barrel.

But even at $44 per barrel, petrol is supposed to be below N90 per litre at the pumps but for the rising exchange rate, which made it impossible for Nigerians to enjoy low fuel price.

Before the exchange rate rose to these unsustainable levels, the federal government under the former administration of President Goodluck Jonathan had reduced the price of petrol from N97 per litre to N87 per litre, few months before the 2015 general elections.

Though the decision was supported by the plummeting price of crude oil, which led to a drop in the price of refined products, most Nigerians had viewed the action as politically-motivated, coming few months before the election.

With the drop in the price of crude, the cost of refined products also dropped significantly, with the government incurring little or nothing in the payment of subsidy in 2015. In 2013, Jonathan’s administration had set aside N971.1 billion for the payment of subsidy and had retained the same figure in the 2015 budget, according to the first Medium Term Expenditure Framework (MTEF) and fiscal strategy presented in September 2014.

Even though the initial subsidy projection was reduced by half with the falling crude oil price, which necessitated the revision of the budget benchmark, the government had no cause to pay huge subsidy claims in 2015 because before the reduction of the pump price, the difference between the official price and the expected open market was only about 90 kobo per litre.

This implied that the government was paying

Queues in a Filling Station only 90 kobo as subsidy on every litre, as against N41 before the drop in the price of crude oil.

To ensure that Nigerians enjoy higher subsidy in view of the drop in the prices of refined products, the government had to reduce the pump price of petrol from N97 a litre to N87 a litre, thus increasing subsidy to N10.90 per litre.

Announcing this decision, the former Minister of Petroleum Resources, Mrs. Diezani AlisonMadueke, said: “As you may be aware, there has been a lot of volatility in the oil market in the past few months and due to this the importation prices of our petroleum products have been impacted”.

“Therefore, with the approval and directive of Mr. President and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as Minister of Petroleum Resources to hereby announce a reduction in the pump price of Premium Motor Spirit (Petrol) from N97 per litre pump price down to N87 per litre pump price, effective from twelve (12) midnight Sunday, 18th of January 2015,” she added.

Exchange rate volatility Though there is volatility in the crude oil market, which has translated to global drop in the price of petrol, the volatility in exchange rate has made it impossible for Nigerians to enjoy the slump in petrol price.

Before the exchange rate soared to this current level of close to N400 per dollar, it was around N171.36, hence it was convenient for the Jonathan’s administration to reduce the price of petrol to reflect the drop in the international market price. But with the current high exchange rate, even the recent upward review to N145 per litre ought to be re-visited to reflect the current market realities or the country might risk another crisis where petrol would sell for N250 –N300 per litre. The Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore had stated the high exchange rate resulted to the high costs of both petrol and diesel in the country.

“The unfortunate situation in which we find ourselves is that as the price of crude oil was dropping – as the international price of diesel was dropping, we devalued the Naira. For example, for Premium Motor Spirit (PMS), the exchange rate for bringing products before the devaluation was N171.36 per Dollar. At that rate, the landing cost of PMS was N90.67 per litre. There was a time the exchange rate rose

to N188, that is, N188 was the interbank rate, while the CBN gave us N171.36. But when it went to N188, the landing cost of PMS rose from N90.67 to N98.36. As at today when the exchange rate has gone to N199 (there is no window again), the landing cost rose to N103.45.

So, you see that the main factor here is the exchange rate,” he had said.

From an official rate of N197 per dollar, the administration of President Muhammadu Buhari raised the exchange rate to N285 per dollar and also increased the price of petrol to N145 on May 11, this year.

Fresh fuel crisis underway With the rising exchange rate, marketers no longer source dollar at the N285 official price for importation of petrol.

The difficulty in accessing petrol at the current low international market price first started when in a bid to save the banks and the economy from collapse, the Central Bank of Nigeria (CBN) classified oil and gas sector into one segment and set a limit for lending by the banks.

The CBN had grouped the Exploration and Production (E &P); downstream and services into one segment and directed the banks not to exceed certain lending limit to this sector.

That was where the problem started because the marketers had argued that the CBN should have treated each of the three as a separate business entity. After grouping the oil and gas sector into one segment- oil companies, the apex bank had in December 2014 directed the banks to reduce their transactions with oil companies to curb the challenges of meeting the huge funding demand of these companies and also address other liquidity issues.

The CBN’s directive stemmed from the result of an earlier risk-based supervision exercise carried out by the apex bank, which revealed a huge financial exposure of the banks to the oil and gas sector.

The apex bank was said to be concerned about some risk management deficiencies, and was determined to take necessary steps to ensure that banks have sufficient capital buffers to mitigate escalating risk-taking activities.

The second directive of the apex bank that affected the marketers was the closure of the retail Dutch Auction System/wholesale Dutch Auction System (rDAS/wDAS) segment of the foreign exchange market.

CBN’s action was an indirect devaluation

of the Naira at the interbank forex market.

With the closure and the quoting of an exchange rate from N197 to N285 per dollar, the marketers became comfortable selling imported petrol for N145 per litre.

But the volatility experienced in recent weeks has made it impossible for the marketers to access dollar at the official price.

The Minister of State for Petroleum, Dr. Ibe Kachikwu has made spirited efforts to get foreign exchange for the marketers from the international oil companies (IOCs) but the IOCs, it was learnt, no longer give dollar to the marketers at the official rate.

One of the marketers told THISDAY at the weekend that no marketer would enjoy any margin at exchange rate of above N285 per dollar. The downstream sector has successfully exited the subsidy crisis and has moved into exchange rate crisis.

It is pertinent that government take the bull by the horns by removing the price cap on petrol to avoid dragging the country back and forth into avoidable crisis.

Since the country cannot sustain the official price of petrol without plunging into crisis when the price will hit N250, N300 and above, the government should remove the ceiling and allow the market forces to drive the price at sustainable level.nDiesel has since been deregulated and no crisis has been witnessed in the supply of the product. In a reaction to the previous debates on the merits and demerits of deregulation, the PPPPRA had acknowledged the unquantifiable benefits of deregulation.

“Basically, the underlying principles behind deregulation and liberalisation are the same; removal of official restrictions and bottlenecks that discourage participation and investment, and the consequent opening up of the sector with the aim of engendering maximum competition. This applies in all cases so there is no fundamental difference based on sectors. Therefore, the feat achieved in the communication, aviation and broadcasting sectors of our economy can be replicated in the downstream sector if the policy is followed to its logical conclusion,” the agency had noted.

Already some marketers are clamouring to sell at N151 per litre, but interestingly, some retailers are selling below N145 per litre.

So, deregulation will engender competiveness in pricing and investment and end the perennial crisis, which leads to the price rising beyond sustainable levels.

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TUESDAY AUGUST 16, 2016 T H I S D AY

A

WEEKLY PULL-OUT

‘MY TENURE PUT LA INTEREST ERES EREST LAWYERS’ INTEREST IN THE FRONT BURNER’

16.08.2016

NBA President, Augustine Alegeh SAN

2/DASHBOARD

16.08.2016

A Contract Can Only be Enforced Against a Person Who is a Party to the Contract PAGE 3

The Campaign for the Anti-Torture Bill in Nigeria PAGE 4

Buhari Urges Privileged Nigerians to Emulate NBA Boss by Creating Initiatives to Cater for the Less Privileged PAGE 4

On the Appointment of the Next Chief Justice of Nigeria PAGE 5

QUOTABLES ‘I believe that our profession has a lot to offer to this nation, especially in its most difficult times.

The most important aspect of that is integrity.

Our profession must demonstrate that we are capable of teaching integrity in this land. If there is anything we need the most it is that ability to be able to demonstrate across all professions that we should be believed for what we say that we are.’

– Vice President, Professor Yemi Osinbajo SAN

COLUMNISTS IDOWU OLOFINMOYIN The ‘White wing-tipped Collar’ is synonymous with the Advocate and the Advocate with oratory on what is pertinent, significant and what is poignant to contemporary life. And that is what The WhiteCollar column is, a variety column that discusses, by various written mediums, the legal issues that affect contemporary Nigeria, and hopes to inform meaningful discourse toward the ideal of our national community.

Idowu is Counsel with Norfolk Partners, and as well as expertise in Law and Litigation, he has interests in Culture, Sports and Entertainment.

He obtained a B.A. in Business Law and Marketing (Joint Hons.) from London Metropolitan University before his Post-Graduate Diploma in Law, Professional Training for the Bar and qualifying as a Barrister in England and Wales. He has an L.L.M from BPP University London.

NIALS Considers How to Develop an Appropriate Legal Framework for Financial Inclusion PAGE 5

‘The Legal Profession Can Elevate One to the Utmost Height’ PAGE 6

A Commercial Perspective on the Call for the Separation of the Attorney-General’s Office from the Justice Ministry PAGE 7

Prisoners with Disabilities: Justice Delayed Means More than Justice Denied PAGE 12

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

LAW REPORT/3

A Contract Can Only be Enforced Against a Person Who is a Party to the Contract

T

he doctrine of privity of contract is to the effect that a person who intends to enforce a contract against a party must show that the said party is a party to the contract.

In the instant appeal, the Supreme Court held that the Respondent was not a party to the contract and as such the contract cannot confer enforceable rights or impose obligations on the Respondent.

Facts The Appellant (plaintiff at the trial court) is a business man in Switzerland. The 1st Defendant at the trial court is the alter ego of the 2nd Defendant at the trial court, which is a limited liability company situate at Akure, Ondo State. The Respondent (3rd Defendant at the trial court) is a banker carrying on business in Nigeria.

About November 1990, the Appellant at the request of the 1st and 2nd Defendants’ paid the sum of N90, 510.00 (Ninety Thousand, Five Hundred and Ten Thousand Naira) to the Respondent vide a cheque in favour of the Respondent.

The said sum was to satisfy an urgent need to pay part of the fees for the grant of a loan to the 2rd Defendant.

It was understood, that 1st and 2nd Defendants’ would be jointly and severally responsible for the repayment of the loan as primary debtors. It was also agreed that the loan will not be refundable if the project did not take off.

Subsequently, the Appellant requested for the re-payment of the sum of N90, 510,000. The 1st Defendant in reply through his solicitors Messrs. Akintunde & Co confirmed the payment of the money to the Respondent. During the course of time, the Respondent unilaterally deleted the project from which the loan to the 2nd Defendant was meant to satisfy from the Respondent’s list of assisted projects and thereafter terminated the loan agreement.

The Appellant being dissatisfied with the Respondent’s action and seeking to recover his money back instituted an action at the High Court (“trial court”) claiming against the 1st and 2nd Defendant and the Respondent’ jointly and severally, the sum of N90, 510.00 with interest at the rate of 45% per annum from 9th January, 1991 until the final liquidation of the said sum. He claimed the sum was repayable by the Defendants’ and the Respondent as money had and received by Respondent for the use of the Appellant. He further claimed in the alternative, sum which was due and payable by the 1st Defendant upon the 1st Defendant’s covenant and undertaking to indemnify the Appellant for paying the sum of N90, 510.00 to the Respondent at the instance of the 1st Defendant and on behalf of the 2nd Defendant and money held in constructive trust by the Respondent for the benefit of the Plaintiff.

The Respondent entered appearance with a verifying affidavit. The Appellant subsequently filed a summons for summary judgment under the Lagos State High Court Rules for an order “granting the Appellant liberty to enter final judgement against the Respondent in the sum of N90, 510.00 with interest at the rate of 45% per annum from (sic) the 9th day of January 1991 until the whole sum is finally (sic) liquidated”. The Respondent, intending to raise points of law from the Bar, filed no affidavit. The 1st and 2nd Defendants’, by their solicitors’ letter to the Appellants’ agent, of 07/12/92, exhibited to the verifying affidavit in support of the summons for judgment, confirmed the payment of the sum of N90, 150.00 to the Appellant but stated that it was “on the understanding that the said amount would not be refundable in case the project did not take off”.

On 4th July, 1994 when the summons for judgement was heard, learned counsel for the Respondent was absent and judgment was entered against the Respondent. Thereafter, on 07/07/94, he filed an application to set aside the summary judgment entered against him. The learned trial judge duly heard argument on the motion to set aside the summary judgment and dismissed same in his ruling.

The Respondent being dissatisfied with the decision, appealed to the Court of Appeal. The Court of Appeal allowed the appeal on the ground that no contractual relationship existed between the Appellant and the Respondent and hence the Appellant had no cause of action against the Respondent. The Appellant being dissatisfied with the decision appealed to the Supreme Court. In the Appellant’s brief of argument a sole issue for determination was formulated, which the Court adopted as the issue in determining this appeal; “Whether the absence of contractual relationship between the Appellant and the Respondent necessarily implied that there was no cause of action in respect of Appellant’s claims in equity for money received and for money held in constructive trust”?

M.U Peter-Odili, JSC

In The Supreme Court of Nigeria Holden at Abuja On the 28th Day of February, 2016 Before Their Lordships Mary Ukaego Peter-Odili Walter Samuel Nkanu Onnoghen Nwali Slyvester Ngwata Olukayode Ariwoola Musa Dattijo Muhammad Justices, Supreme Court SC.180/2005, 2016(2) LEDLR-17 Between URS REICHIE (suing by his attorney Oluyomi George Taylor) . ............ Appellant And Nigeria Bank for Commerce And Industry .....Respondent Judgment Delivered By Mary Ukaego Peter-Odili, JSC

The Appellant argued that equity will not fold its arms and watch as the law is applied as an engine of fraud.

He further argued that even if there is no contractual relationship between the Appellant and the Respondent, the Court of Appeal failed to avert its mind to the fact that the Appellant did not claim in contract and therefore, he was not required to show a cause of action in contract.

He referred to his Statement of Claim and argued that he claimed the refund as money held in constructive trust and for money had and received. Thereafter he argued that what is really sought is the intervention of the Court of equity in order to obtain a refund of the money paid to the Respondent in support of a project which was, unilaterally and without any reasons, deleted by the Respondent.

The Appellant further submitted that there is a relationship or nexus between the Appellant and the 1st, 2nd Defendants at the trial court and Respondent and that the Appellant had paid the cheque in the sum of N90, 510.00 directly to the Respondent who unilaterally frustrated the purpose for which the money was paid by the Appellant.

He contended that the Respondent will benefit or unjustly enrich itself by its default of not refunding the N90, 510.00 deposited, after it had unilaterally and without any excuse deleted the contract in respect of which the payment was made to it by the Appellant. He further contended that if the court below had averted its mind to the two equitable remedies (constructive trust and claim for money had and received), it would not have concluded that there was no

cause of action by the Appellant against the Respondent.

In response the Respondent argued that the issue raised by the Appellant as distilled from the three grounds of appeal to the Supreme Court does not reflect or arise from the decision of the Court below upon which the appeal may be predicated and so is not sustainable. He further argued that it is trite that an aggrieved party can only appeal against a decision of a Court that was adjudicated upon and so the issue for determination in this appeal having not been raised at the Court of Appeal is incompetent.

Additionally he argued that that this appeal, in so far as the grounds in the Notice of Appeal and the issue distilled therefrom are concerned, is incompetent and must be struck out.

The Respondent thereafter submitted that even from the Appellant’s the Statement of Claim and the verifying affidavit it is evident that no cause of action is manifested against the Respondent. He further submitted that to sustain an action in contract against the Respondent, the Appellant ought to have pleaded that the Respondent joined the 1st and 2nd Defendants’ at the trial court in borrowing the N90, 510.00 from the Appellant. He thereafter submitted that the fact that the money borrowed was paid to the Respondent did not create a liability in the Respondent and no fraud is alleged.

The Court’s Rationale and Judgment The Court stated that in arguing its sole issue, the Appellant had relied on the case of Alfotrin Ltd v A.G. Federation (1996) 9 NWLR (pt.475) 634 where the learned judge stated that “the law is settled that where a plaintiff can prove the rendering of services under an unenforceable contract, the contract is admissible as evidence of the value of the services rendered and he may recover on a quantum merit basis. Put differently, where work is done or services are rendered by the Plaintiff at the request of the Defendant and of which the Defendant has had the benefit, the Plaintiff can recover the value of the work or services rendered on a quantum merit. The law provides remedies for cases of unjust enrichment to prevent one from retaining some benefit derived from another in which it is unconscionable that he should keep. Such remedies strictly speaking are different from remedies in contract or tort and are recognised to fall within the common law remedy of quasi contract”.

Based on the above, the Court held that the case of Alfotrin (supra) as cited by the Appellant was completely different from the situation existing in the case at hand.

The Court stated that in the Alfotrin there was a matter of some linkage on work and services between the parties. The Court held that the constructive trust that the Appellant was harping on to create a cause of action against the Respondent finds no anchor herein, and it is even outside what was claimed in the pleadings and extraneous to the decision of the Court below, and therefore it was unsustainable and the only option is to disregard it as not forming part of the case adjudicated upon by the Court below. The Court further held that where a Court of law did not decide on a certain point, another Court (this Court in this instance) cannot enter into a discourse thereof because a ground of appeal challenges a decision of a Court posed on the issues as joined, litigated and adjudicated upon by the Court.

The Court thereafter held that for an action in contract such as the one in the present case at hand to be sustained, there must be privity of contract. The Court further held that from the pleadings and verifying affidavit, there is no privity between the Appellant and the Respondent and that the situation is not transformed merely because money borrowed by the 1st and 2nd Defendants’ from the Appellant was paid to the Respondent, as that would not create a liability on the Respondent when no fraud is alleged for the repayment of the loan of the said sum of N90, 510.00 from the Appellant.

The Court thereafter held that the Appellant’s reliance on a relief in equity without substance cannot set up a cause of action as known to law against the Respondent and so the Court of Appeal was correct in its decision.

The Court dismissed the appeal for lacking in merit, affirmed the orders of the Court of Appeal and awarded the sum of N150, 000.00 (One Hundred and Fifty Thousand Naira) costs to be paid by the Appellant to the Respondent.

APPEARANCES Adewale Adesokan for the Appellant Theodore Ezeobi (Jnr.) for the Respondent Reported by Adegbolayemi Alakija, Aluko & Oyebode, Lagos.

4/

16.08.2016

A Book on the Criminal Justice System for Launch Akinwale Akintunde

L-R: Mr. Okechukwu Nwanguma, Mr. David Anyaele, Mrs. Gloria Nweze, Mr. Damian Ugwu, Mrs. Adaobi Egboka and Mr. Nathaniel Ngwu at the 2-day workshop on the Anti-Torture Bill in Ikeja last Thursday

The Campaign for the Anti-Torture Bill in Nigeria Jude Igbanoi

A coalition of civil society organisations in Nigeria has come together to push for the passage of the Anti-Torture Bill, which has been at the National Assembly since 2012.

Last Thursday at Definite Hotel in Ikeja, Amnesty International led discussions at the event where representatives of over 20 Nigerian Human Rights organisations engaged in discussions which indicate that Police and Military personnel routinely use torture and other ill treatments; to extract information and “confessions”, and to punish and exhaust detainees.

The group found out that in contravention of National and International law, information extracted by torture and illtreatment is routinely accepted as evidence in court. That the Nigerian authorities display an apparent lack of political will to adhere to their International Human Rights obligations.

It was agreed that Nigeria as a State is party to several Regional and International Human Rights mechanisms that prohibit the use of torture and other ill-treatments.

These include the International Covenant on Civil and Political Rights (ICCPR); the Convention against Torture (CAT) and its Optional Protocol (OPCAT); the International Convention for the Protection of All Persons from

Enforced Disappearance; and the African Charter on Human and Peoples’ Rights.

The Nigerian Constitution also prohibits torture and other inhuman or degrading treatments.

However, Nigeria’s criminal and penal codes fail to explicitly prohibit the use of torture and other forms of ill-treatment to extract information. As such, everyday practice is inconsistent with the constitutional provision prohibiting torture.

In a bid to address this problem, a bill to criminalise torture was introduced in the Nigeria in 2012 and passed its final reading in June 2015, as part of the 45 bills passed on a single day by the Nigerian Senate. It was however not signed by the President but rather returned to the Senate for amendments.

In response to the increased use of torture by the police and other law enforcement agencies as preferred means of investigation and the nonpassage of the anti-torture bill by the Nigerian Legislature, Amnesty International Nigeria, in collaboration with its partners organised a two-day workshop with the purpose of strengthening its advocacy about torture in Nigeria as well as pushing for the passage of anti- torture bill in Nigeria.

The broad objectives of the

workshop are to: • Generate accessible knowledge on the use of torture by law enforcement agencies in Nigeria.

• Update stakeholders on the progress made so far on the advocacy for the Anti-Torture Bill presently before the National Assembly and to design a way forward towards ensuring the passage of the bill by the Legislature.

• Foster dialogue, networking and experience sharing between Nigerian Civil Society Organisations and Government agencies to particularly exchange experiences, ideas, strategies and lessons on working in torture related cases in different parts of the country under different contexts.

• Facilitate strategic consultation among stakeholders of an action plan to strengthen independent and collaborative advocacy action towards the passage of the Anti-torture bill at the National assembly.

The 2-day workshop had 33 participants in attendance, including lawyers, Human Rights Defenders, Human Rights organisations, Community Based organisations and victims of torture.

The workshop was officially declared open by Damian Ugwu, Researcher at Amnesty International Nigeria.

The two-day workshop was an interactive forum where the

next steps and plan of action were discussed.

The following Resource Persons made presentations on the following topics: 1. Nathaniel Ngwu: The Anti-Torture Bill: Where we are.

2. Malachy Ugwumadu: Torture: A legal perspective.

3. Justine Ijeoma - Torture and Law Enforcement Abuse of Power in Rivers State 4. Justus Ijeoma Uche : Torture in Anambra State Arrest and Detention 5. Okey Nwanguma: Torture and The Nigerian Police Adaobi Egboka: Nigerian Torture Bill, Coalition building and the Way forward The Anti-Torture Bill is a very important bill that is expected to reduce the occurrence of torture in Nigeria as well as hold perpetrators accountable.

The large turnout of stakeholders as well as the enthusiasm from participants showed how committed participants are to addressing the problem of torture in Nigeria.

The meeting acknowledged the effort and decisions taken during a similar meeting by stakeholders in Abuja on 12th and 13th. The resolutions from both events may soon be developed into a communiqué and harmonised into practice directions to help the coalition achieve its stated objectives.

Lagos Enlightens Its Citizenry on How to Access Justice when their Rights are Violated Akinwale Akintunde To ensure that Lagos State citizenry have easy access to justice and prevent them from taking the law into their own hands whenever the need arise, the state government has commenced an enlightenment programme on how to enforce their rights.

Organised by the Public Advice Centre (PAC) of the Lagos State Ministry of Justice, the enlightenment programme took off last Thursday in Epe Local Government area of the state with staff of PAC engaging in a road show round streets of the ancient town and markets.

According to PAC's Director, Mrs. Margaret Asuma, the Lagos State Government created the

initiative to provide its citizens easy access to information and advice on a wide range of issues.

Addressing the people in Oluwo and Aiyetoro markets in Epe, Asuma said PAC was created in 2008 under the Lagos State Ministry of Justice to serve as the first port of call for citizens in distress and those seeking information and advice on their rights and responsibilities.

Asuma said Governor Akinwunmi Ambode desires peace, progressive and development for the citizens of the state, adding that PAC serves as an interface to provide information and legal advice to members of the public, dealing with agencies of government, organised private sector, Human Rights Desk, State

Welfare departments and other justice sector institutions.

The director explained that despite the robust services offered by the initiative Lagosians are still not fully aware of how to enforce their rights and the governor does not want a situation where a Lagosian will be cheated and does not know how to go about fighting for his or her rights and get succor for misdeeds meted on them.

She told the people that PAC will not only attend to human rights issues but all complaints brought before the centre and advice them on the government agency that will take up and prosecute their complaints free of charge.

Asuma also encouraged the

people to bring cases of rape and child defilement, wife battering, child abuse to the attention of government and to desist from sweeping such under the carpet, promising that official intervention will give them peace of mind in their families.

According to her, PAC can also be of free assistance to the people in areas like environmental and other related matters; relationships-legal rights and responsibilities; work benefits and pensions; employer and employee matters; social welfare and child rights; family and inheritance; land title registration and ancillary matters; domestic violence and sexual offences; social exclusion and discrimination; debt and monetary claims.

A new book, "The Indigenous African Criminal Justice System for the Modern World" is set for launch on Tuesday, August 16 at the Airport Hotel, Ikeja.

This book, written by Olusina Akeredolu, is written against the background of the demand for lawyers to seek indigenous interventions to challenges in the criminal justice system.

Published by Carolina Academic Press, United States, the book will be presented to the public at the launch which will be chaired by Dr Olorogun Sonny Kuku, President, Uiversity of Lagos Alumni Society and Joint Chief Director, EKO

Hospital Lagos.

Special guests of honour expected at the event include Mrs Adejoke Orelope-Adefulire, former Deputy Governor, Lagos State; Chief Afe Babalola SAN, Chief Wole Olanipekun SAN; Lagos State Chief Judge, Hon Justice Funmi Atilade; Ekiti State Chief Judge, Hon Justice Ayo Daramola; Senator Bob Effiong; Femi Falana SAN; Chief Anthony Aribisala SAN; Dele Adesina SAN; Chief Bola Awe; Chief Lanre Adesuyi amongst others.

The Royal Fathers of the day are HRM Ooni of Ife, Oba Adeyeye Ogunwusi, and HRM Oloye of Oye as well as Oba Michael Ademolaju.

Buhari Urges Privileged Nigerians to Emulate NBA Boss by Creating Initiatives to Cater for the Less Privileged Akinwale Akintunde President Muhammadu Buhari has urged rich Nigerians to emulate the foot steps of Mr. Monday Onyekachi Ubani, the 2nd Vice President-elect of the Nigerian Bar Association (NBA) by creating initiatives that will take care of the less privileged in the society.

The president made this appeal in a letter addressed to Ubani and read by his spokesperson, Mr. Femi Adesina during the launch of Onyekachi Ubani Foundation (OUF) in Lagos.

President Buhari commended the vision of the foundation, which is dedicated to helping the poor and needy in the society and to celebrate those who made the country proud with virtuous acts and urged other privileged Nigerians to emulate such vision.

"Please accept my felicitations on the formal launch of the above named Foundation to commemorate your birthday.

“It is significant that the foundation is dedicated to helping the poor and needy in the society and also to celebrate those who made our country proud with virtuous acts. This, I heartily commend and recommend to other well off Nigerians.

“I am very pleased that the foundation launch will be marked by a public lecture, which topic focuses on one of the things dearest to the heart of this administration which is the anti-corruption war. I look forward to details of the address” Buhari stated.

In a keynote address, General Overseer of Latter Rain Assembly, Pastor Tunde Bakare, said that the Nigerian society promotes corruption through a warped expectation and demand culture.

The Pastor who was represented by Mr. Segun Oloketuyi, the Managing Director of Wema Bank Plc said: “The society further corrupts the system through a warped expectation and demand culture.

“A constituency that expects monetary handouts as support during elections in place of laws that facilitate good governance,

has already created an atmosphere for corruption and ineptitude where the power of recall for poor performance is never activated.

“The corruption problem in the Nigerian system is a people and expectation problem. It is created through the supply of people of questionable character to the political decision-making system from the citizenry.”

The keynote speaker, Pastor Tunde Bakare blamed the corrupt expectation and demand culture as the main cause of the impunity of corrupt individuals.

In his address titled, 'The System that Allows Massive Corruption in Nigeria Must be a Bad System', Bakare, the presiding pastor of the Latter Rain Assembly noted that government officials in Nigeria are not only corrupt, but that corruption itself is official.

Bakare said at the twilight of the military era in Nigeria’s political trajectory, the name “Nigeria” became synonymous with a certain word, a word that elicits the image of a cesspool running over corruption.

"At that time, precisely in 1999, Transparency International rated Nigeria the second most corrupt country in the world in terms of perception, second only to her eastern neighbour, Cameroon.

"For instance, given the unbridled looting of the treasury at the time, reportedly to the tune of over 1 billion dollars as was subsequently uncovered following the exit of the military, it was obvious that the abnormal had become the norm, the illegal had become legal, the outrageous had become banal and the aberrant had become the gold standard."

Bakare, who is also the Convener of the Save Nigeria Group (SNG) further stated that "Through 17 years of civil governance, the stench of corruption has continued to pollute the national atmosphere and to attract the derision of the international community.

CONTINUED ON PAGE 6

16.08.2016

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On the Appointment of the Next Chief Justice of Nigeria Ikeazor Akaraiwe As Martin Luther King Jr. famously said, “Injustice anywhere is a threat to justice everywhere.

We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly.” neither know Honourable Justice Onnoghen JSC personally nor am I of Akwa-Ibom/Cross River extraction, but whatever the merit or demerit of appointing a Chief Justice from outside the Supreme Court Bench, I counsel most respectfully that it be not implemented until the current second most Senior Justice Hon. Justice Walter Samuel Nkanu Onnoghen JSC becomes and completes his tenure as Chief Justice, according to the already established practice of seniores priores (the elder ones first) for the following reason.

The last time the Chief Justiceship of Nigeria could reasonably have gone to a person from the Akwa-Ibom/Cross-River axis, it was Sir Egbert Udo Udoma JSC, father of current Minister for National Planning who was bypassed thrice although he was conceivably the most senior Justice of the Supreme Court of Nigeria counting his years as Chief Justice of Uganda from 1963 to 1969, as follows: firstly, when Taslim Elias was appointed Chief Justice, secondly, when Sir Alexander was appointed Chief Justice, and thirdly, when Hon. Justice Fatai-Williams was appointed Chief Justice in his stead. Sir Udo Udoma JSC has suggested at page of 202 of his memoirs, The Eagle In Its Flight, that the denial was on the ground that he was a double leg amputee, never mind that he had been Chief Justice of Uganda from 1963 to 1969. Some may suggest that it was because he came to the Nigerian Supreme Court from the Ugandan Supreme Court in 1969, although he was already a Chief Justice of Uganda and had indeed been assured that his 1963 appointment as Chief Justice of Uganda amounted to an appointment to the Nigerian Supreme Court as again suggested in his said memoirs, which assurance came into fruition when he was formally sworn in, in 1969!

It is suggested that the process of welding a nation of many

I

ethnic nationalities into a united nation, must take note of geopolitical sensibilities especially where merit is not going to be sacrificed. Nobody has said anything about merit or the lack of it where Onnoghen JSC is concerned. Indeed, forgive me for suggesting that the Federal Character configuration in Nigeria appears to apply only when it favours some parts of Nigeria.

Now that Hon. Justice Onnoghen JSC from the same former South Eastern State as Sir Udo Udoma JSC, is next in line to be sworn in as Chief Justice of Nigeria after the current incumbent, it does appear to me as if it would be clearly discriminatory against Nigerians of Akwa-Ibom/Cross River extraction if for any reason except on proven grounds of corruption or demerit, the appointment were denied him.

While it is true that the Nigerian Bar Association and other stake holders have from time to time made a case for the appointment of Justices of the Supreme Court from the rank of Senior Advocates of Nigeria, as indeed happened when Federal Attorney-General Augustine Nnamani SAN went straight to the Supreme Court from the Bar on August 15, 1979, it would be manifestly impolitic to change the policy of seniores priores in appointing the Chief Justice at this present time.

On the matter of our Supreme Court not being "activist" enough so new blood is needed from outside to rejuvenate her, it is hereby submitted that restoring activism to the Supreme Court of Nigeria should not be by denying the Akwa-Ibom/ Cross-River axis the Chief Justiceship of Nigeria, but by appointing fearless, intelligent justices whenever a vacancy arises in the Supreme Court. In this regard, I hail the nomination of Amina Adamu Augie and Ejembi Eko JJCA to the apex court. It is further submitted that within the perimeters of the conservative legal profession, following the dissension of Hon. Justice Onnoghen JSC (together with Aloma Mariam Mukhtar, later CJN and Oguntade JJSC) from the majority (and in President Buhari’s favour) in BUHARI v INEC & ORS [2008] 18 NWLR (Pt.1120) 246 wherein the Supreme Court affirmed President Yar'Adua as winner of the 2007 presidential elections by a majority of four (Kutugi, Katsina-Alu, Tobi and Musdapher) to three (Oguntade, Mukhtar & Onnoghen), to mention only one case, Onnoghen JSC is sufficiently 'activist,'

Chief Justice of Nigeria, Hon.Justice Mahmud Mohammed

for it takes courage to look your colleagues in the face, and then say, ‘I disagree’.

As far as appointment of the Chief Justice of Nigeria is concerned, this change of policy if true, it is hereby reiterated, should take off after the tenure of the next in line, Onnoghen JSC. Otherwise the message will be unmistakable: all Nigerians are equal but some are more equal than others.

Ikeazor Akaraiwe was the 1st Vice-President NBA, 2008-2010.

NIALS Considers How to Develop an Appropriate Legal Framework for Financial Inclusion Tobi Soniyi in Abuja Worried by the fact that millions of Nigerians are excluded from access to any form of financial or credit scheme, the Nigerian Institute of Advanced Legal Studies held a round table on the appropriate legal framework for financial inclusion.

At the round table which was attended by representatives of the Central Bank of Nigeria, the Global Centre for Human Empowerment and Entrepreneurship Development and the Small and Medium Enterprises Development Agency of Nigeria SMEDAN. The topics addressed at the session included National Financial Inclusion Strategy, Financial Inclusion and Micro Credit Banking System in Nigeria and Overcoming the Challenges of Micro, Small and Medium Medium Enterprises through Financial Inclusion.

While welcoming participants, the Director General of NIALS, Professor Deji Adekunle said that a situation where about 40 million Nigerians did not have access to any form of financial or credit scheme was not acceptable.

He stated that as the foremost legal research institute in Nigeria, NIALS considered it urgent to develop a legal framework that enhances access to finance by those left behind. He further added that the institute would examine extant legislation to identify those that required amendments or outright repeal so as to remove legal and administrative impediments inhibiting access to financial and credit schemes by the masses.

The round table observed that the key barriers to financial inclusion included lack of income; long distance to access points; inadequate knowledge about financial services; high cost of services; cumbersome requirements.

NIALS' Director of Commercial Laws, Professor Paul Idornigie, SAN noted that financial inclusion played a key role in the stability of any economy's financial system as well as reducing poverty in a sustainable manner. According to him, it is even more pertinent in the case of Nigeria as a developing nation to use financial inclusion as a platform not just for growing the financial sector but to drive an inclusive economic growth. Prof. Idornigie noted that small scales enterprises remained the backbone of the Nigerian

economy making up of 96 per cent of all businesses in the country and employing 58 million people. He said that "It is critical, therefore that those in this group should be financially included," but regretted that, their main challenges are access to finance and land."He noted that even though the financial sector had witnessed significant developments in recent years in terms of strategies and policies aimed at expanding the Nigerian financial sector, the fact that Nigeria was ranked 169 out of 189 countries surveyed in 'Doing Business 2016' implied there were enough obstacles to make access to finance a tough challenge for many.

In his view, factors making financial inclusion difficulty were largely legal, regulatory and supervisory. Just as there are no shortage of laws addressing the challenges of bringing everyone under one financial scheme or the other, there is a long list of institutions addressing the challenges namely: the Central Bank of Nigeria Act 2007, the Banks and Other Financial Institutions Act, 2004. Pension Reform Act, 2014, National Insurance Commission Act, 2004, Small and Medium Scale Industries Development Agency, Act, 2004, Nigeria Deposit Insurance Corporation Act, 2004, Mortgage Institutions Act, the Investments & Securities Act 2007 as amended in 2015, among others.

There are also several strategies, policies and regulations – the Financial Inclusion Strategy, 2012, the Cashless Economy Policy, the Micro finance Policy, 2005, Non-Interest Banking Policy, Agent Banking, among others. The problem often is lack of synergy among these institutions.

To avoid overlapping of functions, Prof. Idornigie called for strategic partnership among these agencies, regulators and supervisors. He also identified some provisions of the Company and Allied Matters Act that serve as stumbling blocks in the way when it comes to doing business.

For instance, why should CAMA require that unless you are two, you cannot incorporate a small business? The stipulation of a minimum share capital in section 27(2)(a) of CAMA is also no longer a requirement in countries that have achieved greater financial inclusion.

The Head of Financial Inclusion Secretariat at the CBN, Mrs Temitope Akin-Fadeyi while presenting an overview of the National Financial Inclusion Strategy said it was heart-warming to see NIALS getting involved in how to

ensure more Nigerians have access to finance.

According to her, 39.2 million Nigerian adults are financially excluded as at 2010. She said the CBN planned to reduce that drastically by 2020. That is in line with the Federal Government's commitment to make Nigeria one of the top 20 economies by the year 2020.

She further noted that the strategy provided the country with opportunity to expand business into the untapped potential market of the unbanked and undeserved people.

She identified many initiatives and policies introduced to widen the financial inclusion net and address implementation challenges. Among such initiatives are: credit enhancement schemes, youth entrepreneurship development programme, anchor borrowers programme, mobile money and the likes.

Akin-Fadeyi also recognised the efforts of other stakeholders including the National Pension Commission, National Insurance Commission, Securities and Exchange Commission, Nigerian Identity Management Commission, Nigerian Deposit Insurance Corporation, Ministries of Finance, Education, Communications, Youth and Sport and Women Affairs among others.

Going by the statistics she provided, these initiatives are paying off. As at 2008, 45.4 million people were financially excluded. Six years latter, the number dropped to 36.9 million.

She observed that access to financial services was skewed in favour of men saying that 21.4 million (42.7 per cent of the total female population) were financially excluded while for men, the figure stood at 15.6 million (35.8 per cent of the total male population).

Despite the progress made so far, challenges abound.

Some commercial banks are lagging behind in innovations and have continued to rely on restrictive traditional banking methods. Banking services are concentrated more in urban areas while the rural areas continue to suffer.

Amongst the recommendations proffered, the round table called for the stakeholders that fall into the category of providers such as banks, insurance and technology firms to offer products and services as well as infrastructure and technology required for the implementation of the National Financial Inclusion Strategy (NFIS) and create opportunity to expand businesses into the untapped, potential market of the unbanked and undeserved.

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16.08.2016

Expanding the Frontier of Dispute Resolution in Nigeria through Online Dispute Resolution (ODR) Ahmed Adetola-Kazeem

O

nline dispute resolution (ODR) is a genre of dispute resolution that uses technology to facilitate the resolution of disputes between parties. It primarily involves negotiation, mediation or arbitration, or a combination of all three. In this respect it is often seen as being the online equivalent of alternative dispute resolution (ADR). However, ODR can also augment these traditional means of resolving disputes by applying innovative techniques and online technologies to the process.

ODR techniques are already being deployed around the world in resolv-

ing a wide range of disagreements – from consumer disputes to problems arising from e-commerce, from quarrels amongst citizens to conflicts between individuals and the state.

ODR is not appropriate for all classes of dispute, but on the face of it, is best placed to help settle high volumes of relatively low value disputes – robustly, but at much less expense and inconvenience than conventional courts or conventional arbitration.

It is believed that efficient mechanisms to resolve online disputes will impact on the development of e-commerce. While the application of ODR is not limited to disputes arising from business to consumer online transactions, it seems to be particularly apt for these disputes, since it is logical to use the same medium (the internet) for the resolution of e-commerce disputes when parties are frequently located far from one another.

Dispute resolution techniques range from methods where parties have full control of the procedure, to methods where a third party is in control of both the process and the outcome.

These primary methods of resolving disputes may be complemented with Information and Communication Technology (ICT). When the process is conducted mainly online it is referred to as ODR, i.e. to carry out most of the dispute resolution procedures online, including the initial filing, the neutral appointment, evidentiary processes, oral hearings if needed, online discussions, and even the rendering of binding settlements. Thus, ODR is a different medium for resolving disputes, from beginning to end, respecting due process principles.

While the use of ODR has become commonplace in the Western world with e-businesses such as Amazon and eBay solving millions of disputes

through ODR, it is instructive to note that the concept of ODR is still very strange in Nigeria. On eBay alone, around 60 million disagreements amongst traders are resolved through ODR yearly.

There is a huge market for arbitrators and other ADR practitioners in ODR if the proper legal framework is put in place and other modalities for its success worked out. With the advent of e-businesses in Nigeria, such as Konga, Jumia, Yudala, OLX, Jiji etc., and the numbers growing daily, the potential for growth of ODR can only be imagined. If properly utilised, this would be a veritable means for the inclusion of young arbitrators and ADR practitioners in the arbitral and Alternative Dispute Resolution processes.

Ahmed Adetola-Kazeem, MCIArb (UK) is an Arbitrator and a legal practitioner in the law firm of Gani Adetola-Kaseem (SAN) LP

BUHARI URGES PRIVILEGED NIGERIANS TO EMULATE NBA BOSS BY CREATING INITIATIVES TO CATER FOR THE LESS PRIVILEGED CONTINUED FROM PAGE 4 "Despite the emergence of a new government on the heels of a strong anti-corruption campaign, despite the credence lent to this anti-corruption promise by the antecedents of President Muhammadu Buhari, and despite global acknowledgement that Nigeria has taken shovel loads off the peak of this mountain of filth, the stench of corruption remains “fantastically” horrible with the rest of the world turning their noses away in disgust and derision.

"There is a pattern to the pervasive occurrence of corruption across the polity; a pattern that is simply a subversion of the normal dynamics of society as an organised state, a situation I refer to as the systematic normalisation of the absurd.

"Corruption in civil society is perpetrated by individuals - from the student who cheats in certificate examinations to the parent who

purchases examination questions otherwise known as “expo”; from the sales recorder who embezzles and doctors the books to the trader who uses false scales; from the policeman who extorts at gunpoint to the civil servant who sits on files until his palm is “greased”; from the banker who aids and abets money laundering to the doctor who gives fictitious medical reports for a fee", he stated.

The clergy however, noted that Nigerians are not entirely corrupt by giving instances of the airport cleaner who found and returned N12 million to its rightful owner and President Muhammadu Buhari’s public declaration to be incorruptible which has been unchallenged.

He also cited examples of Nigerians who have rejected mouth-watering morally bankrupt pecuniary offers.

On his part, OUF founder, Ubani also ap-

pealed to wealthy Nigerians to support the less privileged in the country.

According to him, the society will continue to breed miscreants if those who are wealthy do not come to the assistant to the poor and less privileged.

“The consequences of not being our Brother's Keeper is what bred Boko Haram; it is currently breeding other societal miscreants all over the place. God knows what else, what next, where else, when next the next terror will hit us.

The danger is growing within; it is drawing nearer and nearer to our door step, just as the storm gathers.

“The Good news is that we can avert the next crisis, contain and correct the current crisis today. All we need to do is to extend a hand of help with a heart of love, however little, to that next door neighbor, or stranger seeking

your assistance,” he said.

Ubani noted that he has been in the daily struggled to help the poor in the society but that there is a limit to how many people he can help with his limited resources.

“There is a limit to how many Nigerians a Good Samaritan with limited resources can help, but I am convinced that if I get your support in your capacity as an empowered Nigerian, together we can create a system that will lift majority of Nigerians, young and old, out of poverty and hunger. It takes just a little more creative thinking and brainstorming to build that enabling structure outside of the box.

“This is why I have come out to appeal for your support on the platform of the Onyekachi Ubani Foundation to help save millions of Nigerians out of the indignity of want, lack, hunger and deprivation,” he said.

Legal Personality of the Week Igbeaku Ukwuego Evulukwu

‘The Legal Profession Can Elevate One to the Utmost Height’ My name is Mrs. Igbeaku Ukwuego Evulukwu.

I am originally an American trained and registered Medical Laboratory Scientist that practised briefly as a Clinical Pathologist in the US before coming home in 1981. After my National Youth Service I started my Civil Service career with the Ministry of Defence at the Military Hospital, Lagos where I worked for 28 years, rose to the zenith as a Fellow Medical Laboratory Scientist of Nigeria and retired in March 2013 as an Assistant Director Medical Laboratory Scientist.

However, midway into my Civil Service career I realised that I did not want to retire as a Medical laboratory Scientist and that was what informed my decision to study law in the University of Lagos. I studied law in UNILAG for six years part time in the evenings while working full time at the Military Hospital to qualify as a lawyer despite having previous degrees in the Medical field. I also attended the Law school in Lagos, after which I was called to the Nigerian Bar as a Barrister and Solicitor of the Supreme Court of Nigeria in July 2003. In addition, I obtained an LLM in Maritime Law and Arbitration and I am also a member of the Chartered Institute of Arbitrators (UK), Maritime Arbitrators Association of Nigeria, an Inducted member of the Nigerian Chamber of Shipping as well as a Chartered Mediator and Conciliator among other bodies to which I belong.

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

soon as I notified them of my qualification as a lawyer. Thankfully the challenge has been overcome with diligence and constant practice in Military Law and other aspect of the legal profession.

What was your worst day as a lawyer?

My worst day as a lawyer was the day I was tongue lashed by a judge while holding brief for a senior colleague who had failed to obey the court’s order as to cost. I immediately offered my unreserved apology to the Court and paid the penalty instantly.

Igbeaku Ukwuego Evulukwu

challenges?

The initial challenge I had in my career as a lawyer was re-orienting my thoughts as a scientist to that of a lawyer with all the attendant qualities of the great profession. This challenge occurred when I was redeployed by the Ministry of Defence on an ad hoc basis to the Court Martial of the Nigerian Army Legal Services at 81 Division Victoria Island as

What was your most memorable experience?

My most memorable experience was being in the hallowed chambers of the Supreme Court of Nigeria and listening to a full panel of the Judges give a ruling on a matter that was of interest to me as I was also a party in the suit. It was an edifying moment for me as the judgment was also in our favour.

Who has been most influential in your life?

The most influential person in my life has been my husband, Chief Godson Evulukwu who has not limited my aspirations in any way but has rather supported and given me the wings to fly to the heights the Lord has willed me to attain.

Why did you become a lawyer?

The dignity and nobility associated with the Legal Profession was the first thing that caught my fancy in deciding to be a lawyer, in addition to the fact that I had people already in the legal profession that I admired very much and wished to be like them.

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

My advice to anyone wanting a career in law is to go for it and follow their dream as you are on the right path to becoming a member of one of the most dignifying and noble professions in the world. The legal profession can elevate one to the utmost height that one may want to attain.

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

If I had not become a lawyer, I would most likely have continued to be a Medical Laboratory Scientist which I thought was my first love until it was overtaken by the Legal profession where I also have three members of my immediate family as practitioners; namely my eldest son Iheanyi, his wife Ada, and my only daughter Ugo, all of whom are incidentally my seniors at the Bar. Where do you see yourself in ten years?

In ten years’ time I see myself practising law amidst my grandchildren who may also have graduated as lawyers too.

16.08.2016

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A Commercial Perspective on the Call for the Separation of the Attorney-General’s Office from the Justice Ministry Victor C. Okpara

R New Genesis

ecently, the face-off between some principal officers of the Nigerian Senate and the federal Attorney-General (AG) over allegations of the former’s forgery of the Senate Rules and Standing Orders triggered a new wave of public discourse on the need to sever the Office of the AG from that of the Minister of Justice.

Much of that discourse, as the trend has always been, focused on the potential - and sometimes actual - conflict the constitutional fusion of the two roles presents in the AG’s exercise of prosecutorial authority.

Having regard to certain laws and policies in Nigeria, however, it appears that there are also commercial considerations that support separation of the two offices. And perhaps at this time, more than ever, when Nigeria’s economy is facing some of its greatest challenges as foreign exchange earnings continue to drop, and governments at all levels are scrambling to attract new foreign investments, the commercial sense in that separation is worth the consideration.

‘Gate-Keeper’ AGs Anyone who has attempted executing a money judgment or an arbitral award in Nigeria against the government or any of its agencies/controlled entities would almost invariably be familiar with - and irritated by - the ‘gate-keeping’ powers of AGs under section 84 of the Sheriffs and Civil Processes Act, Cap S-6, Laws of the Federation of Nigeria, 2004 (SCPA). By virtue of that section, a garnishee order nisi attaching funds in the custody or control of a federal or state public officer in his official capacity cannot be made without the consent of the respective federal or state AG. Order V Rule 5 of the Judgment Enforcement Rules (JER) made under the SCPA extends this requirement to any other form of potential attachment of property in the custody of a public officer. Case law consistently upholds the validity of these statutory provisions: see, for example, CENTRAL BANK OF NIGERIA v HYDRO AIR PTY. LTD. (2014) 16 NWLR (Pt. 1434) 482; GOVERNMENT OF AKWA-IBOM STATE v POWERCOM (NIG.) LTD. (2004) 6 NWLR (Pt. 868) 202; ONJEWU v K.S.M.C.I. (2003) 14 NWLR (Pt. 827) 40.

For a country that lays claims to democracy and its associated virtues of separation of powers and an independent and effective judicial authority, it is sad that such provisions as section 84 of the SCPA are still in force at all. But it is utterly depressing that there is in fact a constitutional requirement which all but guarantees that the AGs whom section 84 of the SCPA has made ‘gate-keepers’ over the execution of money judgments against government, including judgments of the Supreme Court, are necessarily partisan.

Sections 150 and 195 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) (the Constitution) create the offices of the federal and state AGs. These sections explicitly provide that a federal and state AG shall be “a Minister in the Government of the Federation” and “Commissioner for Justice of the Government of [the] State” respectively. Obviously, the offices of ministers at the federal level and commissioners at the state level are part of the executive arm of government subject to the directions and control of - and ultimately removal by - the President and Governors respectively: see sections 147 and 192 of the Constitution.

Against the above background, it is fanciful to reasonably expect an AG to readily consent to the levying of execution on the funds or other assets of a government run by his very own political benefactor. As many investors and businesses, whether foreign or indigenous, have come to discover, obtaining a favourable decision against governments and /or state-controlled entities in Nigeria is, in the vast majority of cases, barely the half-way point in a long and torturous journey towards securing redress for the government’s wrongdoing.

For the avoidance of doubt, this awkward

Attorney General of the Federation and Minister of Justice, Abubakar Malami SAN

situation does affect investors’ confidence in doing business in Nigeria. The availability of a knowledgeable, impartial and efficient judiciary and the relative ease of enforcement and realisation of favourable decisions, especially against the sovereign, are part of the practical indices for measuring the overall attractiveness of a country to investors.

Windows Shut – the Treasury Single Account As a counter-measure to the resistance they often encounter when trying to secure AGs’ consent to levy execution on government assets, practitioners created a ‘window’ that was effectively beyond the reach of the ‘gate-keeping’ AGs. They resorted to garnishment of government funds lodged with commercial banks in Nigeria. It worked – in many cases.

Supported by the decision of the Court of Appeal in PURIFICATION TECHNIQUES (NIG.) LTD. v ATTORNEY GENERAL OF LAGOS STATE (2004) 9 NWLR. (Pt. 879) 665, which (correctly) held that government funds lodged with commercial banks are not funds in the custody of a public officer that require the consent of the AG for garnishment purposes, the sting of the AGs’ ‘gate-keeping’ role was thankfully tempered to a decent extent. That window has now been firmly shut for most government agencies and entities by the implementation of the Treasury Single Account (TSA), especially at the federal level.

Operationally, the TSA has made the Central Bank of Nigeria (CBN) the custodian of funds accruing to the federal government from most of the revenue-generating government agencies and entities. In CENTRAL BANK OF NIGERIA v HYDRO AIR PTY. LTD. (supra), the Court of Appeal (again, correctly) confirmed that the CBN is a public officer as defined in the Constitution, and therefore garnishment of funds lodged with it requires the federal AG’s consent.

Without doubt, the TSA pursues a noble cause, and in fact, in some ways, arguably enhances the work of lawyers that advise and represent clients on anti-corruption and regulatory compliance matters. For instance, in appropriate cases, a simple rule that prohibits employees, without prior management approval, from making payment to any government entity through any means other than the TSA may be a clearer and more effective measure for deterring potential improper payments to public officers than layers of sometimes unwieldly anti-corruption policies. It is, therefore, simply a matter of hard luck that the implementation of the TSA would result in judgment creditors

of government agencies / entities losing their former chances of attaching government funds without first seeking the consent of the AG of the relevant debtor-government.

Indeed, seeking an AG’s consent should ordinarily not be such a miserable burden if AGs are impartial and professional in the discharge of their official duties. Sadly, however, impartiality, professionalism and independence under the current arrangement of fused AG and Justice Minister / Commissioner offices are apparently rare philosophies – a point that continues to be underscored by the conduct of a number of AGs we have had since Nigeria’s return to democracy. Thus, in the near future, as the TSA takes deep roots, we may see a surge in litigations seeking orders of mandamus to compel AGs to consent to the attachment of government assets. That is the only option, cold comfort as it sounds, that the courts say we could explore: see CENTRAL BANK OF NIGERIA v HYDRO AIR PTY. LTD. (supra); GOVERNMENT OF AKWA-IBOM STATE v POWERCOM (NIG.) LTD. (supra). Given that each such litigation is potentially appealable all the way to the Supreme Court, another item might just have been added to the cart of factors discouraging investments in Nigeria.

Known Revelation All of the foregoing discussions lead to one point: in addition to the argument that the wide prosecutorial authority and discretions of an AG makes a bifurcation of the office from the political office of Minister of—or Commissioner for—Justice desirable, the need for independent and objective AGs in the commercial arena further justifies that separation in so far as such provisions as section 84 of the SCPA and Order V Rule 5 of the JER remain in force.

Or even better, if the National Assembly and Mr President really mean the business of making Nigeria more business-friendly, they can save us all the trouble by amending the SCPA and JER to delete the offending provisions in section 84 and Order V Rule 5 respectively. Considering other legal hurdles that favour government agencies and controlled entities - requirements for pre-action notices, public officers’ protection laws and sundry abridged limitation periods for certain entities - there is enough ‘protectionism’ by the State already.

Victor C. Okpara is a member of the Dispute Resolution and Anti-Corruption and Compliance Practices at Templars, Lagos, and presently an intern in the International Arbitration Practice at Allen & Overy LLP, Paris.

8/COVER

16.08.2016

‘My Tenure Put Lawyers’ Interest in the Front Burner’ On August 25, 2014 in the city of Owerri, Mr. Augustine Alegeh SAN was sworn in as the 27th President of the Nigerian Bar Association. He hit the ground running with unprecedented reforms, projects and innovations which have made the Association the envy of all other professional bodies in Nigeria. As he hands over to Mr. A.B. Mahmoud SAN next week at the Annual General Conference in Port Harcourt, he reminiscences on his highs and lows in his two year tenure, including the controversy which has trailed the Association’s recently concluded elections by e-voting.

Y

our administration saw the first of many introductions in the history of the NBA. The introduction of an NBA Insurance Scheme, the NBA ID Card, the nationwide implementation of the NBA Stamps and Seals, and it culminated with the nationwide elections in which every Nigerian lawyer could vote for their representative officials in the NBA, and no less noteworthy, through electronic voting from anywhere in the world. What would you like your administration to be remembered most for?

My administration will best be remembered for putting the welfare and best interest of our members in the front burner at all times. The “best interest of majority of NBA members” was the central theme of all our programs. All of us who served in the last two years would be pleased if our focus on the welfare and interest of our members is remembered by NBA Members.

Much has been said about the 2016 Electronic Voting that for the first time allowed a universal adult suffrage for all Nigerian lawyers. It has been applauded for its innovation and you yourself have received commendations for keeping this Campaign promise of yours made in 2015. But as much as the elections may have come and gone old criticism about the cost and monetisation of the NBA elections have again surfaced. You openly denounced this yourself in your speech “My Plans for the NBA” delivered in 2014. As outgoing president how have you managed to tackle this problem such that going on from your time

as President the electoral system for the NBA is more meritorious and less driven by the amount of financial strength a candidate has?

The introduction of e-voting made the 2016 NBA elections simple, easy, fair, transparent and credible. The cost of the elections to NBA and the Candidates was also reduced drastically.

We had a total of 5442 voters at the elections. The cost would have been astronomical if we had to converge in Abuja, for example to vote. Air tickets alone, at an assumed cost N40k for a return ticket would have cost about N217M. Accommodation for three [3] nights per delegate at an assumed cost of N60k would have cost about N326M. Voting venue, printing of ballot papers and logistics would have cost about N20M. We must also appreciate that for there to be further reduction in election expenses the candidates themselves have to resist the temptation of engaging in voter tampering.

The system has just started and I believe that in the years ahead it will get better and reduce expenses to an acceptable level.

In stating your agenda for the Bar in 2014 you eloquently said “In effect the NBA President is the lead spokesperson for millions of Nigerians”, and it is right that the NBA President speaks with the voice of the Bar, representing its time honoured traditions of independence and objective representation on poignant issues in the Nigerian society. How have you as the NBA President balanced the responsibility of representing the views of the Bar while also working with the Government to implement policy that actually makes a difference in Nigerian life?

NBA President, Augustine Alegeh SAN In the last two years the Bar as the voice of the Nation has been vocal and responsible. We have spoken up and matched our words with action.

During the 2015 elections we did not just speak up but we also at our own cost organised voter education and mobilisation campaigns all over the Country. We have constructively engaged Government on all fronts and we have achieved tremendous success on several fronts.

On the issue of the Bar’s responsibility to speak out on behalf of Nigerians and make commentary on the state of Nigerian society, in the area of Legal Representation for Nigerians incarcerated in Nigerian Prisons- statistics show that as at June, 2016 of the 63,142 people currently in Nigerian Prisons 17,879 have been tried and convicted and 45, 626 are still waiting for their trial. The NBA is the bastion of civil

"MY ADMINISTRATION WILL BEST BE REMEMBERED FOR PUTTING THE WELFARE AND BEST INTEREST OF OUR MEMBERS IN THE FRONT BURNER AT ALL TIMES"

rights and freedoms, and over 70% of inmates languish in prison with their constitutional rights infringed daily. Is this not a poignant issue for the Bar to champion? Should the NBA as the largest conglomeration of lawyers in Nigeria not have a program for providing representation to prisoners in need of legal representation?

The NBA has been in the forefront pushing and leading efforts to reform the administration of criminal justice in general. We of course realise that the penal system is an important institution in this regard. We have made a number of interventions.

We have provided leadership to the review of the Prisons Services Act. We believe that enabling an appropriate legal framework is a necessary step towards prisons reform. We have also been very vocal in our advocacy for dealing with the problem of prison congestion. It is simply unacceptable that we have more than 40,000 persons awaiting trial. Many, for a minimum of five years. We have also re-organised our Pro-bono programme to provide an efficient platform for our lawyers to do pro-bono work. This has increased the number of Lawyers providing legal aid to prison inmates tremendously. We have engaged all justice sector participants in our efforts to deal with the scourge of Awaiting Trial Inmates. This work is continuing even till date.

You also noted as part of your agenda for the Bar that the process of appointing the NBA’s representatives on Boards, Commissions and Parastatals was shrouded in secrecy.

You commissioned a committee to inform the NBA of where such representative appointments of the NBA were to be made and of those who

16.08.2016 "THE INTRODUCTION OF E-VOTING MADE THE 2016 NBA ELECTIONS TO BE SIMPLE, EASY, FAIR, TRANSPARENT AND CREDIBLE. THE COST OF THE ELECTION TO NBA AND THE CANDIDATES WAS ALSO REDUCED DRASTICALLY"

had occupied such positions. Now at the end of your tenure what is the NBA’s process of appointing the representation to these positions?

We introduced the General Practice Committee and the Committee advised us in making appointments on behalf of the Bar. We put in our best to ensure that appointments were spread across board and all new but competent faces were recommended to represent the Bar. The 56th Annual General Conference of the Nigerian Bar Association will take place from the 19th to 26th August 2016 with the theme “Democracy and Economic development”. What informed the choice of theme and what can be expected from this year’s conference?

This year’s conference focuses on the relationship between economic growth and democracy. There is the need to ensure that there is economic growth and development for the populace in order to sustain any democracy. We have invited a top class faculty to discuss this central theme and indeed for every session at the Conference. We chose this topic because we see an urgent need to provide some economic growth for Nigeria in order to sustain and solidify our democratic experience.

You set up and inaugurated the Database & Documentation of Nigerian lawyers Committee in association with the Supreme Court of Nigeria.

The Supreme Court in conjunction with the NBA and notable IT company- Microsoft, is in the process of incorporating a new electronic mail system and virtual database that create a unified network for all Nigerian lawyers all over the world. Could you tell us how far the project has gone and when it will be completed?

The judicial email project is a Project that was initiated by the Judiciary with the NBA acting as a Partner since the NBA membership represents the main users of judicial services. I believe that the project is ready for launching before the end of 2016.

On February 10th 2015 the current NBA Anti-Corruption Commission was inaugurated with the main objective of eradicating corruption from the legal profession and maintaining the ethical standards of the Bar. Bearing in mind that this is a wide and encompassing task, what progress has the Commission made since inauguration and more importantly what institutional systems have been created in the NBA to ensure the NBA’s institutions are strong enough to discourage, detect and penalise corruption?

Our main role in the anti-corruption crusade is to draw the attention of the Nation to the adverse effect of corruption and to identify and draw attention to areas in our society where corruption thrives. We have done this consistently and effectively and there is currently the willingness of more and more Nigerians to join in the fight against Corruption.

You organised the first-ever African Bar leaders’ conference in April with the theme “Reducing Poverty and Promoting Sustainable development”.

How can the NBA lead the various Bar Associations on the continent in building on this collaboration?

COVER/9 We organised the AFBA conference to engender collaboration among the various Bar Associations and Law Societies in Africa. After the Conference we visited South Africa and had fruitful meetings with the Bar Associations in South Africa.

The collaborative efforts are yielding positive results as AFBA leaders are constantly communicating and discussing rule of law issues as they affect the different Countries. Recently, a Lawyer was killed in Kenya in circumstances suggesting State involvement and several AFBA leaders weighed in on the matter.

The NBA Women Forum has gradually suffered a decline in active participation of female lawyers which may or may not be an assessment of female lawyer’s participation in the NBA as a whole. However do you think that an active NBA Women’s Forum can benefit the NBA today or do you believe a focus should lay more on getting more female lawyers active in the NBA as a whole?

The NBA Women Forum appears inactive because the tenure of the Last Executive lapsed. We have already inaugurated a Steering Committee to run the affairs of the Forum and organise elections at the AGC so the Forum would be fully operational shortly. The Forum plays a great role in the NBA without preventing Women from participating directly in other NBA affairs. We have women as Chairs and Secretaries of several of our Branches.

In a tenure that has largely been acclaimed as successful and innovative what are the most significant projects you regret not being able to see completed?

Life is dynamic and there is always room for improvement. There is no significant project that we have left undone and I have no regrets. My executive put in its best and we are collectively happy with our modest achievements.

The innovation of this year’s NBA Elections and the universal suffrage for Nigerian lawyers were welcomed heartily by legal practitioners in Nigeria. However a shadow was cast on these great leaps by the low participation and accreditation of lawyers which saw serious difficulty at some periods in the process. For instance it was necessary to lengthen the period of registration because of the introduction of the new technology. Therefore with the benefit of hindsight how can the NBA’s electoral committee improve future elections?

When a system is new there would be challenges but the e-voting system introduced by the NBA is a brilliant system. The system has revealed that several Lawyers are yet to catch up with technological advancement. There is an urgent need for Lawyers to educate themselves and catch up with the digital age. The judicial email would

be launched soon and Lawyers who are lagging behind in this regard would find it difficult if not impossible to file processes in our Courts.

The NBA electoral portal had two demos of how to vote but it appears most of those who had problems omitted to view the demos. The other problems were minor problems but as I have always maintained the system can only get better in future elections.

The Gadzama Campaign Organisation has alleged that the recently concluded NBA Presidential Election was not conducted transparently or fairly and on the basis of these allegations have rejected the result and instituted proceedings to negate it. What would you say is the NBA’s response to these allegation?

I am not aware that JK Gadzama SAN has instituted any Court action in respect of the elections. It is not unexpected that the loser at an election would be unhappy with the outcome but it is apparent to all who engaged the system that the system was free, fair, transparent and credible. In fact, JK Gadzama, SAN participated at all stages and was hopeful of victory. He sent a team to witness the declaration of results with the expectation that he would be declared the winner but the Bar decided otherwise and all we can do as friends and colleagues is to encourage him at this time. I even invited him for a meeting but he wrote to say he is on vacation. Time is a healer and I am sure that after reflection in his solemn moments he will call and congratulate the President –Elect, AB Mahmoud, SAN in the best traditions of the Bar. We remain one happy family at the Bar at all times.

The NBA Insurance Scheme has been a truly invaluable introduction into the welfare scheme of the NBA. For the first time Nigerian lawyers have a real functional scheme in place and even begun to benefit from it. However many lawyers are still not aware of their entitlement to the insurance scheme by virtue of their NBA membership. How can the

"DURING THE 2015 ELECTIONS WE DID NOT JUST SPEAK UP BUT WE ALSO AT OUR OWN COST ORGANISED VOTER EDUCATION AND MOBILISATION CAMPAIGNS ALL OVER THE COUNTRY"

NBA continue to create awareness of these NBA welfare schemes?

I believe most lawyers are now aware of the available welfare packages but the National Secretariat still has the task of publicising these packages so that more members can benefit from them.

As the Ikeja Branch crisis ensues following the annulled Branch Elections of the Executives, what lessons might the NBA be able to learn?

How does the NBA intend to rebuild bridges between the aggrieved parties to enable the “Tiger Branch” continue to contribute productively to the NBA? The issue in the Ikeja Bar is a simple one of compliance with the Constitutional Provisions set out and contained in the NBA Constitution. It is sad that some members believe they are not bound by the Constitutional Provisions. All our members must lead by example and obedience to agreed and laid down principles cannot be compromised. The Ikeja Branch has held fresh elections which have produced a Chairman and I urge all members of the Ikeja Branch to join hands with him in developing the Branch.

It has been suggested that the office of General Secretary of the Association should be a full-time salaried job. From the benefit of your experience in office, would you agree with this proposition?

The NBA does not require a full time salaried General Secretary. The current status of the General Secretary is almost perfect. My suggestion is that we need to strengthen the office of the Executive Director so that the day to day operation of the National Secretariat is left to the Executive Director while the NBA National Executive dictates policy and have oversight functions.

As one of your first acts as President in 2014 you dissolved the Section On Legal Practice however as perhaps one of your final acts as President you have now reinstated an interim-steering committee. What has informed the need to create the interim-steering committee for the section?

It is not correct to state that I dissolved the section on Legal Practice [SLP]!

What happened was that the Section failed to hold elections and purported to install a new Chair without completing the election process which had been started earlier in Abuja. We decided not to recognise such an EXCO and appointed an Administrator to steer the affairs of the section until November, 2014 when the election process would have been completed with a proper election. Some members went to Court so we deferred the elections and then a new Constitution was approved in 2015 and we have now set up a steering committee in line with the new Constitution and the Committee is to steer the affairs and organise elections at the AGC. The point must be made that SLP in the last two years was fully operational and had several programmes in Uyo, Lagos and Abuja. The Section will also run its programs at AGC 2016 in Port Harcourt.

What would be your advice to the incoming president of the NBA? My advice to the incoming President is that he should always put the best interest of the Bar as the primary condition in decision making. I know he has the experience, exposure, competence and credibility to excel as President of the Bar. It has been commonly said by past NBA Presidents, although without a tinge of regret, that the NBA presidency preoccupies its holder greatly to the detriment of their legal practice. Is this true for you?

The position of the NBA President is extremely challenging and to faithfully discharge the tasks of your office your practice will suffer but it is a sacrifice worth making. I am happy that I will be handing over and passing on the baton to a competent hand. I am also very happy to be returning to my practice, my family and a quiet life.

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16.08.2016

The Nigerian Bar Association (NBA) on Friday, August 12th, commissioned The Nigerian Bar Association House in Abuja. Here are some of the personalities at the event. photos: Julius Atoi

NBA Executive Director, Mrs. Ifueko Alufohai , Vice-President, Professor Yemi Osinbajo SAN and Sokoto State Governor, Hon. Aminu Tambuwal

L-R: NBA President, Mr. Augustine Alegeh SAN, Vice-President, Professor Yemi Osinbajo SAN and Sokoto State Governor, Hon. Aminu Tambuwal

L-R: NBA President, Mr. Augustine Alegeh SAN, Attorney General of the Federation and Minister of Justice, Abubakar Malami SAN, Vice-President, Professor Yemi Osinbajo SAN, Speaker, House of Representatives, Rt Hon. Yakubu Dogara, Sokoto State Governor, Hon. Aminu Tambuwal and Rivers State Governor, Mr. Nyesom Wike

Attorney General of the Federation and Minister of Justice, Abubakar Malami SAN (left) and Sokoto State Governor, Hon. Aminu Tambuwal

Former NBA President, Mr. J.B Daudu SAN (left) and former Inspector General of Police, Mr. Solomon Arase

Mr. Offodile Okafor SAN (left) and former Attorney General of the Federation and Minister of Justice, Alhaji Abdullahi Ibrahim SAN

NBA Executive Director, Mrs. Ifueko Alufohai and former Ekiti State Attorney General and Commissioner for Justice, Mr. Olawale Fapohunda

NBA President, Mr. Augustine Alegeh SAN (left) and Chief Ziggy Azike

Mr. Olumide Akpata (left) and Mr. Ade Okeaya-Inneh

16.08.2016

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AMCON and Toxic Assets: Optimising the Securitisation Option Tochukwu Chikwendu

S

Introduction

ecuritisation is the process where illiquid assets or group of assets: receivables, credit card debts, car loans, students’ loans, home mortgages, commercial mortgages etc. are pooled together into a reference portfolio, assessed by a government approved rating agency to determine their viability and repackaged into interest-bearing securities and issued to the investing public - institutional investors, hedge funds and the general public. The pooled assets are usually sliced into tranches- junior, mezzanine and senior- based on the report of the rating agency before they are traded as securities. The return on investment (ROI) on the traded securities is dependent on the performance of the underlying assets. Thus, if the underlying assets perform optimally, then investors will have a positive ROI. In developed economies, securitisation has been long employed to facilitate economic growth and development, significantly in the area of bringing the financial market and the capital market together. Despite its economic advantage, many denigrate the mechanics and operations of the concept which they perceive as the major cause of the 2008 financial credit crunch which ripple effect still lingers. However, several financial institutions (FIs), both in developed countries and emerging markets, still use the concept to raise cash and dispose of assets from their balance sheets.

The concept is equally not a total novelty in the Nigerian economic sector. In fact, the Securities and Exchange Commission (SEC) on April 13, 2015 introduced the Rule on Securitization (ROS) to regulate the concept of securitisation in Nigeria. Rule A Para XVII ROS defined Securitisation to mean “an issuance of securities backed by a pool of assets”.

Notwithstanding the existence of the ROS, it appears that no FI has taken any step to securitise its debt even when there seems to be agencies that can facilitate the securitisation structure.

One of such agencies is the Asset Management Corporation of Nigeria (AMCON).

The Glamour of Securitising Securitisation began as a way for FIs and corporations to discover an alternative source of funding by moving assets off their balance sheets into the hands of willing investors.

This structure reduces the debt burden on FIs arising from incessant and sometimes mismanaged borrowings, and regulatory procedures involved in such borrowings. By securitising, these corporations “use what they have to get what they want”.

An illustration will help the understanding of this concept. Assuming an FI lends a huge sum of money with its maturity date in 10 years and sometime in the future (before the 10 years tenure) the FI needs to raise cash; what is obtainable is that the FI would take out a loan or sell bonds thereby imposing an additional burden on its balance sheet. With securitisation, rather than the loan or note option, the FI could effectively convert a future income stream (the loan with 10 years maturity date) to cash by sourcing for buyers for the already issued loans, converting the loans to tradable securities, repackaging them into tranches and then marketing the loans based on the date of maturity and the interest rate either on a fixed or floating rate.

By securitising their debts, FIs minimise the problem of credit risks associated with individuals, corporate or government loans.

Through this concept, the associated credit risks in the loans granted by FIs are transferred to willing investors thereby freeing up FIs balance sheets and making available cash flows for its business operations.

AMCON’S Legal Construct AMCON was established pursuant to the AMCON Act in July 2010 as a key stabilising

and revitalising tool to reviving the financial system. The ingenious work of AMCON in resolving the problems of Non-Performing Loans (NPLs), pursuant to its mandate of acquiring Eligible Bank Assets (EBA) of Eligible Financial Institutions (EFIs), averted the collapse of the Nigerian banking sector.

To effectively perform its mandate, AMCON is empowered under its Act to issue bonds or other forms of debt instruments as consideration for the acquisition of toxic assets of banks and other FIs. It has the power to borrow or raise money, secure the payments of money via a variety of options, including issuing debentures, debenture stocks, obligations and debt securities of any kind and secure any instrument so issued by trust deed.

It is noteworthy that AMCON’s mandate of acquiring EBA of EFIs creates a creditor/ shareholder relationship between AMCON and the companies with the NPLs. Thus, AMCON has the power to direct the affairs of the company to ensure its stability. A classic example is the acquisition of Aero Contractors (Aero) from defunct Oceanic bank now Ecobank Nigeria Plc. AMCON by purchasing the EBA of defunct Oceanic Bank acquired about 60% stake in Aero due to Aero’s $200 million indebtedness to Oceanic bank. In directing the affairs of Aero, AMCON on February 5, 2016, pursuant to its powers, changed the company’s Board and appointed a manager to oversee its affairs From the foregoing, it is apparent that AMCON received enormous powers to ensure stability in FIs and the economy. AMCON therefore seems to have all the instrumentalities and backing of the government to bring an end to the NPLs quagmire in FIs. AMCON is not too Big to Fail The International Monetary Fund (IMF) in 2013 by its Article IV Consultations (N0. 13/36 March 28, 2013) commended the efforts of Central Bank of Nigeria (CBN) and AMCON in restoring financial stability after the 2009 bank crisis, but called on the government to wind down the operations of AMCON so as to prevent what it referred to as “moral hazard and fiscal risks”.

One of the reasons for IMF’s clarion call was due to the N2.37 trillion losses reported by AMCON. Though there were arguments and counter arguments from several quarters on the propriety of IMF’s recommendation, the fact remains that AMCON has several debts in its books and may not recover the debts within its 10 years span ending in 2022.

On December 8, 2015, two years after IMF’s position, the Managing Director/CEO of AMCON, Mr. Ahmed Kuru, indirectly echoed IMF’s concern during a media parley with financial journalists in Lagos. He opposed the idea of AMCON resuming purchase of banks’ NPLs. According to him, AMCON is currently focused on recovering the N5.6 trillion debts incurred in the resolution of the 2009 banking crisis. He reiterated that due to the rise in NPLs, another asset management company would have to be established to acquire the rising bad debt in the industry, given the lifespan of AMCON. Mr. Kuru again, in a similar statement, on March 16, 2016 while responding to questions from the House of Representatives’ Adhoc Committee on the alleged fraudulent sale of banks stated that the liabilities of the company then stood at about N6.6 trillion. This is about N1.1 trillion higher than its 2015 indebtedness.

The burning questions on the minds of many considering this enormous debt remain - how AMCON can successfully actualise its mandate in this era of dwindling oil price and economic downturn without being over burdened by the debts in its books? How can AMCON expunge the debts which are growing exponentially, from its books? How can it realise the debts of the EFIs from recalcitrant debtors? Who or what can save AMCON from its financial state?

AMCON and Securitisation The establishment of AMCON and the ROS

by SEC are steps in the right direction to kick start and actualise the practice of securitisation in Nigeria’s Financial Sector (FS). The structure, objectives, functions and powers of AMCON make it possible for AMCON to securitise its debts.

of their loan obligations. Also, appointing a securitisation Trustee (ST), from amongst the investors, to act as a watchdog on AMCON and the EFIs, will facilitate a seamless operation of the concept. The ST will ensure that the debts are performing and in the event of default or drop in assets value, demand for a credit enhancement, pursuant to Rules A and F, ROS, from the EFI and/or AMCON. If the debtor fails to comply then the ST will notify AMCON of such default: remove the asset from the pool, dispose of the collateral, and distribute the proceeds to the investors. The ST will also be empowered to personally move against the debtor.

AMCON MD, Ahmed Kuru

Section 5(f)(ii), AMCON Act, which provides that AMCON can take all steps necessary or expedient to protect, enhance or realise the value of EBA including the securitisation or refinancing of portfolios of EBA, is an indication that AMCON has such power.

To actualise this function, which will be for the overall interest of the FS, AMCON will repackage all the NPLs of the acquired EFIs (the originators) into an asset pool and appoint a duly registered rating agency, pursuant to Rule A paragraph 5 ROS to determine the nature of the assets. The agency will measure the likelihood of assets repayment based on a qualitative analysis of the economic, legal, political and financial matters relating to the borrowers, the maturity dates and interest rate.

AMCON will then package the assets and transfer the credit risks of the NPLs by trading them as securities in the capital market to willing investors. The price for the Assets Backed Securities (ABS) or Mortgage Backed Securities (MBS), as the case may be, sold to the public will depend on the security tranche. A risk premium will be applied in the sale of these assets. Thus, a risky asset will be structured to generate high return while a low or no risk asset will generate low return.

AMCON, depending on the refinancing agreement with the EFIs debtors, can sell either an interest or principal yielding asset. To realise investors’ value, a servicer, with no link to the originating FI or AMCON will be appointed pursuant to Rule M. The servicer will have the mandate of collecting the interest and/ or principal amount from the debtors, when due, and disbursing same to investors in the form of dividend. The servicer will also be empowered, pursuant to Rule N, ROS to report any defaulting assets to the Trustee- an investor.

By adopting this simple structured finance concept, AMCON would have succeeded in moving all the toxic assets to willing investors and be on the road to recouping the N6.6 trillion spent on NPLs. The amount realised by selling the ABS or MBS to investors will be used to resuscitate more moribund FIs. This concept will not only provide financial assistance to EFIs but will also foster job creation in the economy.

The recent economic downturn has caused these FIs with several NPLs in their books - which AMCON has vowed not to acquire- to retrench their staff leading to job losses for Nigerians.

This concept will be a redeeming force to an impending doom in our financial system.

Despite the attractiveness of this form of structured finance, one source of worry lingers; how will AMCON ensure the debtors of the EFIs redeem their debts for the ultimate benefit of the investors? What is the assurance that AMCON will not balk and abandon investors to their fate once the credit risks are transferred? Due to these concerns, risk averse investors (which constitute majority of the investing public) may be very wary of such uncertain investment.

To avoid this situation and create investor’s confidence, the regulatory authorities (SEC and CBN) should mandatorily require AMCON and the EFIs (originators) to maintain a five percent (5%) minimum equity interest/stake in the riskiest tranche of assets pool. This approach will incentivise them to ensure debtors’ fulfilment

Conclusion The beauty of this concept notwithstanding, some may argue and rightly so that AMCON is not contemplated as a participant under ROS being neither a public limited company nor a Trustee and has no SPV attached to it pursuant to Rule C, ROS. However, it is arguable that government agencies like AMCON are accommodated in Rule C Para 1(b) which stipulates that an SPV can be any other legal entity which the Commission may by regulation permit to be used for a securitisation transaction. Pursuant to this rule, it seems that SEC intends that a government agency like AMCON can act as an SPV once such agency is permitted and authorised by SEC. Even if SEC contends that AMCON is not contemplated under the rule, it is my view that rules are made for men and not men for rules. When SEC made the ROS, it probably did not envisage the current economic realities of AMCON. The present situation of AMCON constitutes a good reason for the amendment of ROS to include a government agency like AMCON - which possesses the requisite legal construct of an SPV - to securitise its debts.

AMCON is currently battling with financial instability and the only way to save it from the “devil and deep blue sea” situation is for SEC to amend the ROS to allow AMCON securitise its debts. This will create a new investment avenue for investors, both domestic and foreign, increase liquidity in the economy and ultimately, prevent economic apocalypse in the FS. If SEC decides that AMCON cannot perform the functions of an SPV under the ROS and it cannot be accommodated by the amendment of the ROS, then it behoves on AMCON to establish an SPV pursuant to its incidental powers under Section 5(g), AMCON Act. Relying on its incidental powers- of performing such other activities and carrying out such other functions which in the opinion of the Board are necessary, incidental or conducive to the attainment of the objectives of the Corporation –the established SPV will subsume and securitise the N6.6 trillion AMCON debts (toxic assets/NPLs) and securitise them.

Without amending its Act, the SPV will perform similar functions as AMCON but, rather than acquire EBA of EFIs, it will buy out the EBAs/ NPLs from AMCON. AMCON may however, in order to create tidy mechanics, amend its Act to clearly provide for the functions and duties of the SPV. The amendment will emphasise that the SPV is a separate entity from AMCON and pursuant to ROS, does not have any direct link with AMCON, the EFIs (originators) or any of its affiliates. This “simple” concept will free AMCON from the clutching cold hands of NPLs. The concept of securitisation has helped salvage several economies and will definitely aid the Nigerian economy in this era of economic downturn. The ROS should be amended to recognise AMCON as an SPV participant. This concept could be a veritable option to help AMCON and FIs escape the present economic conundrum by permitting them to “use what they have to get what they want”. Writing off debts from books is not the answer as that will reduce cash flow. The concept should begin with AMCON but it definitely should not end with it, FIs should be allowed to turn anticipated cash flows to cash at hand.

Tochukwu Chikwendu is a business lawyer and practices with LeLaw Barristers & Solicitors, Lagos.

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16.08.2016

Prisoners with Disabilities: Justice Delayed Means More than Justice Denied Adaobi Egboka and Jacob Bogart

I

n 2013, Femi Ojebisi bought a Blackberry phone from a man on the street who had, in fact, stolen the phone. However, it was Femi who the Police charged with stealing the phone. He could not afford bail and was incarcerated in Kirikiri Medium Security Prison in Lagos State pending his trial. It has now been three years since his arrest and Femi is still awaiting trial.

Femi’s story of mistaken arrest and delayed trial would have been distressing enough, if it were not for the fact that while in prison he had a stroke and lost the use of his right arm and leg. To freely move around the prison, Femi turned to the prison for help, but was told they could not assist him physically nor provide him with the medicine or mobility aids he needed. With no other source of support, Femi has had to rely on the kindness of other inmates to perform daily, basic functions, like washing, moving about the prison, and using the restroom.

The 1999 Constitution of the Federal Republic of Nigeria, as amended, guarantees every individual the right to the “Dignity of his Person” and not to be subjected to degrading treatment. Femi’s right to dignity is violated when he is denied crutches or other mobility devices, rendering him incapacitated and living at the mercy of other inmates. Additionally, this denial also amounts to a violation of Femi’s right to personal mobility, which the Nigerian Government recognised when it signed and ratified the Convention on the Rights of Persons with Disabilities.

It is not only prisoners with physical disabilities that face greater difficulties in prison. Prisoners with psychosocial disabilities (mental health conditions) also face the challenge of struggling to advocate for themselves within the complex bureaucratic system of criminal justice in Lagos prisons. Taheeb Ibrahim is one such person. Entering the prison in 2011, he has an undiagnosed psychosocial disability, which, in his own words, can cause him to become violent. The free medication the prison provides is enough to help him control his violent outbursts.

However, it does not address the deeper issues Taheeb faces due to his condition.

Indeed, Taheeb cannot recall key details of his case, such as the crime for which he was awaiting trial, whether or not he had met with a lawyer or gone to court recently. Most distressingly, when prison officials tried to look up his case file in their registries, they drew blanks. The prison did not have a record for a prisoner named “Taheeb Ibrahim” in their system. When asked again what his name was, Taheeb stared blankly at the officer and said, “I don’t know.” He could not remember his legal name.

The Prisons Act [CAP 366] of Nigeria requires that at least two medical practitioners “examine the prisoner [undergoing their sentence] and inquire into his soundness of mind” if he or she appears to be of “unsound mind” to the superintendent of the prison. If he or she is determined to be of unsound mind, the officials will recommend to the Judge in a report that the prisoner be removed from the prison and placed in a mental health care facility.

The law thus recognises that prisons are not the right place for prisoners with psychosocial disabilities. However, the complex prison bureaucracy that governs the “soundness of mind” evaluation and reporting process often fails to live up to its ideal, being more prone to delays, inconsistencies, and miscommunication than rehabilitative justice and mental health care.

Most damning, however, is the fact that the law concerns prisoners already undergoing their sentence; it does not envisage or establish procedures for persons awaiting trial.

This bifurcated standard depends on a quick and speedy justice system that tries the accused soon after their arrest. When the trial is delayed by months and years, those persons with psychosocial disabilities cannot have their “soundness of mind” evaluation, let alone be removed to a mental health care facility.

For prisoners like Taheeb, whose psychosocial disability makes it difficult for them to not only advocate for themselves but to even remember key details of their case, each obstacle in the reporting process creates a potential bottleneck that causes them to go without the medical care they require. As Taheeb is left to languish in the prison for years awaiting trial, he will not be evaluated and his immediate and long-term needs will go unmet, compounding the challenges he faces.

According to the Lagos State Attorney-General and Commissioner for Justice, Mr. Adeniji Kazeem, in May 2016 at least 4,000, or 80% of the 5,000 inmates currently incarcerated in Lagos State prisons, are awaiting trial. One of these Lagos State prisons, in which both Taheeb and Femi are held, is Kirikiri Medium Security Prison, which was built to hold 1,700 prisoners but currently houses 2,600.

As the justice system in Nigeria deals with cases at a glacial pace, those charged with crimes often cannot afford bail and, in cases similar to Femi’s, must wait for years for their court date in prison.

The examples of Taheeb and Femi are just two of the many types of disabilities that can affect prisoners with disabilities in Nigeria. Whether a person awaiting trial is visually or hearing impaired, has schizophrenia or some other mental health condition or physical disability, the challenges listed above are all too often present.

Persons with disabilities awaiting trial face greater difficulties than their able-bodied counterparts and need to have solutions tailored to their unique challenges.

To address these varied challenges, Nigerian prisons should adhere to the international standard set for persons with disabilities known as “reasonable accommodation,” which requires that states provide appropriate modification to ensure that persons with disabilities are able to exercise their

rights on an equal basis with others.

For someone like Femi, reasonable accommodation can include providing him with his stroke medication and crutches to assist him in walking.

In the case of Taheeb, persons with psychosocial disabilities should be removed from prisons altogether and placed in treatment centers where they could be properly cared for, as is required by the Prisoners Act. The complex bureaucracy of the reporting system needs to be streamlined and simplified, so that prisoners with psychosocial disabilities do not fall through the cracks of a lengthy and drawn out reporting procedure that is as unfamiliar to them as it is difficult to navigate. By refusing to provide such reasonable accommodation to Taheeb and Femi, the Nigerian Prisons Service violates the rights of these persons with disabilities.

No person should be subject to delayed justice. But in cases in which it occurs, persons with disabilities should not be doubly hurt by structures that refuse to accommodate them.

This article was prepared by Adaobi Egboka, a legal practitioner and the Executive Programmes Director of LEDAP, and Jacob Bogart, an intern with LEDAP and a law student at Columbia Law School in New York, authors of a forthcoming report on the experiences of prisoners with disabilities in Lagos State prisons.

16.08.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

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

Dear Counsel, I should have written to you earlier on this issue, but I did not know that my problem would take this long to be solved.

I worked for a foreigner and his wife as a cook and steward for six and half years. I did not have any problems with the couple or their children for the period I worked and lived with them.

My only worry was the poor salary I was being paid. I got a better job in a fast-food restaurant and told them I wanted to leave.

They refused and offered to increase my salary, but I just had to leave because I also saw the job as an opportunity to build my career.

To my total surprise, my former boss came with some Police men to arrest me just three weeks after at my new work place. They accused me of stealing their money, clothes and other household items. I spent four days in prison and the Police have charged me and taken the matter to court.

I am completely innocent of these accusations; they are only doing this to me out of malice, and knowing that I have no money to fight them back. The Police searched my house and nothing was found.

What should I do? I have spent all my little savings I had on this matter. Some people advised me to beg them, but I cannot

beg for a crime I did not commit.

L. Etuk Victoria Island, Lagos.

Dear Mr. Etuk, I have heard and seen the needless pain and injustice that some people go through due, basically, to ignorance.

Nobody has the right to force another person to remain in employment against his will. When the terms of agreement are not breached or violated, an employee can lawfully and willfully leave his employment. The law only requires that adequate notice is given by such employee to his employer as provided in the terms of his contract of employment.

You also did not need to spend four days in detention without bail.

But now that the Police have arraigned you in court, I advice that you get a lawyer to represent you in the case. If as you hinted, you don’t have the funds to get a lawyer, there are numerous agencies and NGOs that offer pro bono legal services to indigent persons that find themselves in situations like yours.

I hereby attach with this mail a list of human rights NGOs and agencies that offer free legal services including the Legal Aid Council of Nigeria and the Office of the Public Defender (OPD) of the Lagos State Ministry of Justice.

Letter from a Law Student Dear <Law Firm’s name>, Thank you for your letter of rejection. After careful consideration I regret to inform you that I am unable to accept your refusal to offer me employment with your firm. This year I have been particularly fortunate in receiving an unusually large number of rejection letters.

With such a varied and promising field of candidates it is impossible for me to accept all refusals.

Despite’s your outstanding qualifications and previous experience in rejecting applicants, I find that your rejection does not meet with my needs at this time.

Therefore, I will initiate employment with your firm immediately following graduation. I look forward to seeing you then. Best of luck in rejecting future candidates.

Sincerely

Ex-Workers Sue Company over Refusal to Pay Outstanding Salaries, Entitlements

Akinwale Akintunde

The National Industrial Court of Nigeria has been urged to order Global Scansystems Limited to pay outstanding salaries and entitlements of its over 250 staff laid off between 2013 and 2015.

The laid off workers in a suit with No: NICN/ LA/572/2005 filed through their lawyer, Mr. Emeka Ozoani alleged that the management of Global Scan Systems Limited refused to pay their outstanding salaries and entitlements after they were laid off between 2013 and 2015 respectively.

Global Scan Systems Limited, is an indigenous company dealing in industrial technology wares amongst other things.

In their statement of claims, the workers claimed they

were employed by the company in 2006 after the company was awarded a Destination Inspection Contract by the Federal Government to conduct inspection of all imported goods at the Port on behalf of the government.

They said after the expiration of the company's contract with the government in 2013, some of the staff were laid off, while some of the staff employment was renewed by the company for additional six months, which was later extended till 2015 following the renewal of the company's contract with government.

The claimants however accused the company of owing them 28 months salaries before their employment was terminated on September 28, 2015, at the expiration of the company's contract.

They alleged that their letters of termination were not precise and had no definite date for payment of their respective salaries or other sundry entitlements.

According to them, even though they had no issue with the termination of their services which subject to the end of the contract, they are however entitled to be paid their benefits just as their other colleagues who were employed by two other foreign contractors - SGS and Cotecna - were dully paid after the expiration of the contracts.

The workers further claimed that in a bid to get their money, on September 16, 2015 they wrote a letter to one of the company's director, wherein staff members complained bitterly about their unpaid leave allowances, salaries, entitlements and unpaid end of the contract benefits till date.

The matters which are before Justice Peter Odo Lifu and Justice Benedict Kayip have been fixed for October 10, 2016 for hearing.

However, the defendant, Global Scan Systems Limited is yet to file its defence.

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16.08.2016

THE WHITE COLLAR IDOWU OLOFINMOYIN

idowu.olofinmoyin@norfolk-partners.com

Nigerian Prisons and the Travesty of Justice

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itting in a courtroom somewhere in Lagos, on a hot busy weekday a case of Murder and Armed Robbery was announced. Some nine or so young men who had been in court squashed up against each other, were shuffled to the front of a small tight courtroom where some were squeezed into the Defendant’s Box. Only two had lawyers and of these the younger lawyer, informed the court that she was sent by her boss out of courtesy because he could not attend, it was a first appearance and they sought an adjournment.

To our surprise the court insisted that the Prosecution open their case and these two Defending Counsel cross-examine the Prosecution’s witness. After about twenty minutes of cross-examination and the court recording evidence vigorously, we all realised that in the haste to open the case none of the Defendants had been given a chance to plead guilty or not, they had not even been arraigned!

Failing Numbers in a Failing System These kinds of miscarriages of justice occur unfortunately all too many times in our Criminal Justice system and as much as law reforms like the Administration of Criminal Justices Act 2015 attempt to remedy them institutional maladies exist that continue to ensure that they remain the status quo. In the Nigerian Prison System there are 63,142 inmates under remand. Of these 45,626- that is more than 72% of inmates are waiting for their trial and are therefore being held without having been found guilty of committing a crime.

In some cases the time spent on remand is more than the sentence allocated for the offence they have been charged with.

For one such case a young man was imprisoned for two years because he was found with a “Nokia” mobile phone, the same brand a Complainant said was stolen from him, and when he was finally brought to court and the phone shown to the Complainant, the Complainant said, “This is not the phone that was stolen from me”.

The Underbelly of Society Many, if not virtually all the 240 Prisons complexes in Nigeria are at breaking capacity. Human beings become nothing more than bags of bones as men and women, Nigerians no less, are packed, squashed together and treated worse than animals, with the added ignominy that they cannot speak up or complain.

Anyone that has ever visited a Prison will know that the cells Prisoners are kept in have no ventilation, the air in there quickly becomes stale and humidity brings the thick pungent smell of sweat, urine and worse. Beatings, extortion and even sodomy become commonplace occurrence. They become less than nothing, they are no longer Nigerians, they have no rights, they are simply prisoners.

What of the Prison staff that guard them? When I visited a Medium Security Prison in Benin City some years ago I remember the distinct feeling that one Prison warder seeing my group looked

almost imploring at us for any type of help. They had little or no supplies, I remember wondering how these warders with nothing would feed all the people locked up. They have no medical supplies and rely on the generosity of Nigerians who donate to them.

While we fight over disappearing budgets and padded allocations the real men and women serving our country suffer the irresponsibility of those who ought to know and plan for the building complexes, supplies and amenities they need.

Symptoms of a Greater Ailment In the past three months there have been an equal amount of Prison breaks- Kogi, Kuje and Nsukka that all saw Prisoners flee Prison complexes after explosions or break outs through perimeter walls and so on. Nsukka’s jailbreak coming even as recently as August 9th and with these staggering statistics should we not expect more? All of which begs the question “What are our elected officials doing about this?”

As far back as 2012 “the Nigerian Prisons and Correctional Services bill” had been before the National Assembly.

In fact it is reported to have sailed through three readings before the House of Representatives, but for some reason, it unfortunately has not since then managed to become law. Nonetheless this is a good opportunity to remind ourselves of what the bill seeks to reform and why it is ever so important at this time.

The Nigerian Prisons and Correctional Services Bill Firstly the bill seeks to repeal the Nigerian Prisons Act (NPA), currently the legislation regulating the operation and administration of Nigerian Prisons by the Nigerian Prisons Service. Since 1972 when the NPA was passed, legal theory has shifted in favour of reformatory justice and the need to rehabilitate prisoners rather than a wholly punitive focus on the incarceration of offenders, which may shed light on the renamed “Nigerian Prisons and Correctional Services” in

section 1. Section 2(3) and (4) stipulates that classes of prisoners must be created and prisons be designated for specific classes of prisoners, this presumably to apprehend the problem of prisoners awaiting trial being kept with prisoners already convicted.

Worryingly though section 4(c) gives the Minister charged with the responsibility of Prisons the power to make an Order published in a Federal Gazette that: “any prisoner of a class to which any prison or part of a prison has been appropriated under the provisions of this section may lawfully be imprisoned therein, whether or not the warrant or the order for his imprisonment has been issued by a court having jurisdiction in the place where the prison is situated.”

While we will be tempted to give the benefit of the doubt to a Minister of the Federal Republic, should we not also consider the arbitrariness of the power to remand merely based on the “appropriation” of a class of prisoner for a designated prison without the scrutiny and transparency of referral to the courts?

Section 10 also attempts to remedy the situation where Prisoner files or reports are missing by requiring that such be obtained as soon as practicable on each Prisoner. Section 14 refers to Prisoners who appear to be of Unsound Mind, it makes stipulations as to how they are to be treated and insinuates the appointment of a Prison Medical Officer who is to make a report on such conditions of Unsound Mind (Section 20 then substantively creates the position).

Section 15 then speaks to the conditions in which a Prisoner may be removed from the Prison and taken to Hospital because of an emergency.

Section 16 perhaps makes the farthest reaching changes in the remand of Prisoners awaiting trial. It stipulates that: “No person Awaiting Trial shall be remanded in prison for more than 3 months if a prima facie case is established against an accused person

(l) The offence is a bailable offence (2) The accused can provide competent surety (3) The accused is already known to police.”

Section 23 creates specific government allocations for Prisons Services, under which the cost of feeding prisoners will be reviewed every 5 years. Considering the conditions the entire country has experienced just this year alone, perhaps this section could go further and secure the practical reality of managing feeding of the prison population with a more frequent review. Still, notwithstanding any perceived limitations the bill may appear to have, it is clear that the time to act to reform Nigerian Prisons is now.

A Reflection of Who We Are You may be tempted to ask, “Why should we make all this fuss about people serving punishment for the crimes they committed?” “How can we spend money lacking for infrastructural development on people who have rejected the norms of society?” These are real questions we must contemplate seriously and decide to answer as a nation.

Still, the achievements of a society are not judged by how well the richest do, or most law-abiding citizens are treated.

Our strength as a people is not in how well taken care of those at the top are but rather by how well we treat those that have nothing to offer us in return, those who are vulnerable, weak and yes even those who reject our way of life. It is in how well off the worst of us are that we see the fairness and equity of our way of life. And that is without the consideration that when you refuse to feed a man locked up you cannot blame him for whatever he does.

So how are we treating those we have put behind bars? Well enough that when they come out they can join us peacefully? We can pretend like this is not my problem, we may think so poorly of prisoners that we believe everything they experience is well deserved. “I’m not a criminal, I pay my taxes” of course, comfortable thoughts, until the day you or someone you know sees the inside of a cell. Then all too quickly we will know who the animal is, the person caged in or the people locking the cage.

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Anomalies in Banking and Insolvency Law and Practice in Nigeria Abubakar D. Sani

O

ne is of the view that the following provisions of Nigerian banking and insolvency law and practice are inconsistent with relevant provisions of the 1999 Constitution, the African Charter on Human and Peoples Rights and other statutes, viz: 1. Asset Management Corporation Act 2010; 2. Banks & other Financial Institutions Act 1991; 3. Nigeria Deposit Insurance Corporation Act 1988; and 4. The CBN Directive to banks to publish the names of ‘ delinquent debtors’ We take them seriatim: 1. The Asset Management Corporation Act, 2010 Sections 33 – 35, inter alia, of this Act, in my view, constitute a radical revision of the hallowed doctrine of privity of contract and the presumption against retrospectivity of legislation vis-a-vis vested rights, both of which are well entrenched in our jurisprudence. This is because they purport to supplant one of the parties in a banker/customer relationship, with the Assets Management Corporation, which, of course, was not a party ab initio, to the transaction. It is trite law that “the relationship in law between a bank and its customer (is) that of debtor and creditor”: YESUFU v A.C.B. (1981)1 S.C. 74 @ 92 per Bello, JSC (as he then was).

1.01 Under the doctrine of privity of contract, as a general rule, a contract affects only the parties thereto and cannot be enforced by or against a person who is not a party to it. Only parties to a contract can sue or be sued on the contract, and a stranger to a contract can neither sue nor be sued on the contract even if the contract is made for his benefit and purports to give him the right to sue or make him liable upon it.

See, generally, KANO STATE OIL & ALLIED PRODUCTS LTD v KOFA TRADING CO. (1996)3 NWLR pt. 436 pg. 244; As stated earlier, the Asset Management Corporation of Nigeria Act 2010 purported to depart from the established principle of privity of contract between banks and their customers in Sections 33, 34(1) & (2) and 35(1), (2) & (3). The question is: are those provisions of the AMCON Act valid? I submit that no legislature is competent to alter vested rights in the way Sections 33, 34(1)&(2), 35(1), (2)&(4), inter alia, of the AMCON Act has done to the contractual relationship between banks and their debtor customers, at least such rights as were vested prior to the commencement of the Act on the 19th day of July 2010, if at all.

1.02 This is because a statute is not to be given retrospective effect so as to impair existing or vested rights. See OJOKOLOBO v ALAMU (1987)18 NSCC pt. II pg. 991 @ 1003 per Nnamani, JSC, where the apex Court adopted, with approval, the following passage in Craies On Statute Law at page 386, viz: “A statute is retrospective

which takes away or impairs any vested right acquired under existing laws, or creates a new obligation, or imposes a new duty, or attaches a new disability in respect of transactions or considerations already past”(emphasis supplied). See also AFOLABI v GOVERNOR OF OYO STATE (1985)2 NSCC pt. II pg. 1151, where the Supreme Court, per Obaseki JSC, held that “a law is said to have retrospective effect when the date of commencement is earlier in point of time than the date of enactment”.

1.03 When, therefore, is a Right Said to have Vested?

I refer to AGBETOBA v LAGOS STATE EXECUTIVE COUNCIL (1991)2 NSCC pt. II pg. 14 @ 29 where the Supreme Court, per Karibi – Whyte, JSC, held that: “For a right to be described as having vested, it must be more than mere expectation based on anticipation of continuance. It must have actually settled on the person enjoying the right, but for the formality of conferment. It should not be contingent on the happening of an event” 1.04 I, therefore, humbly submit that the said provisions of the AMCON Act are ultra vires the National Assembly, invalid, null and void, at least in respect of rights which were vested in the so-called eligible bank assets prior to the commencement date of the Act, on the 19th day of July, 2010, as aforesaid. In other words, the AMCON Act only applies to transactions made by banks and their debtor-customers after the commencement date of the Act. 2. The Banks & Other Financial Institutions Act, 1991 I believe that the following provisions of this law are anomalous for the reasons stated:2.01 Section 11 titled “Restriction of Legal Proceedings in Respect of Shares Held in the Name of Another”. (i) As its title suggests, this provision precludes any suit against a bank shareholder on the ground that the share(s) is or are vested in another person. I believe that this provision is inconsistent with the right of action under Section 4(8) of the 1999 Constitution as well as Article 7(1) of the African Charter on Human & Peoples Rights, the latter of which provides that “every individual shall have the right to have his cause heard”. The former, i.e., Section 4(8) of the Constitution,

provides as follows: “Save as otherwise provided by this Constitution, the exercise of legislative powers by the National Assembly or by a House of Assembly shall be subject to the jurisdiction of courts of law and of judicial tribunals established by law, and accordingly, the National Assembly or a House of Assembly shall not enact any law that oust or purports to oust the jurisdiction of a court of law or of a judicial tribunal established by law”.

2.02 Section 41 of the Act provides that no suit shall be instituted against a bank which has been taken over by the Nigerian Deposit Insurance Corporation, and that if any such proceedings is instituted, it shall abate, without further assurance than the Act. As with Section 11 of the Act, discussed supra, I believe that this provision is inconsistent with the right of action under Article 7(1) of the African Charter and Section 4(8) of the Constitution; accordingly, it is invalid, null & void to the extent of the inconsistency. See EYESAN v SANUSI (1984)15 NSCC pg. 271.

Section 43 of the Banks and Other Financial Institutions Act provides that: “every bank shall use as part of its description or title the word “bank” or any one or more of its derivatives, either in English or some other language”. The Nigerian Mortgage Refinance Company (“NMRC”) was granted a banking license by the Central Bank of Nigeria sometime in February 2015.

I submit that the breach of this provision of BOFI by the NMRC is evident from the omission of the word “bank” or any of its derivatives from its name: I submit that neither “mortgage” nor “refinance” are derivatives of “bank”. See the Oxford Advanced Learner’s Dictionary, 6th edition, page 314 for the meaning of “derivative”.

3. The Nigerian Deposit Insurance Corporation Act, 1988 3.01 Section 10 of this Act provides as follows: “(1) The Corporation shall establish a general reserve fund to which shall be transferred the Corporation’s net operational surplus before tax if the reserve fund is less than ten times the paid-up capital “(2) The net operational surplus of the Corporation for each year shall be determined after meeting all the current expenditure for that year and after making such provisions as the

Board may deem fit for depreciation of assets, contribution to staff and superannuation funds and all other contingencies”.

The Nigerian Deposit Insurance Corporation is one of 31-odd Government-owned statutory Corporations to which the provisions of the Fiscal Responsibility Act 2007 are applicable. I believe that Section 10 of the NDIC Act is inconsistent with Section 22 of the Fiscal Responsibility Act, which provides, inter alia, that only one-fifths of its operating surplus for the year” should be retained by the NDIC. 4. The CBN Directive to banks on ‘Delinquent’ Debtors.

Recall the ongoing publication by banks of the so-called list of their delinquent debtors, i.e., those alleged to be indebted to them in the sum of N50 million or more.

The publications are ostensibly in compliance with a directive issued by the Central bank of Nigeria of (CBN) to the banks. I believe that this “name and shame” policy is inconsistent with the duty of confidentiality owed by the banks to such account holders under Section 37 of the Constitution. (i) While conceding that this right is not absolute, as Section 45 of the Constitution, provides that the right can be derogated from in the interest of “public safety, public morality, defence or for the purpose of protecting the right and freedom of other persons”, I however, hasten to add that no such issues are involved simply for the mere fact that a person owes a bank the sum of N50 million. (ii) This is all the more so, I submit, because under Section 33(2) of the CBN Act 2007, the CBN itself can only publish any information supplied to it by a Bank with the consent of the bank. Afortiori, I submit, that no bank has the right to publish any information about a customer’s account without the consent of that customer. In other words, the details of a customer’s account with a bank are privileged and, unless the customer waives that privilege, the bank would be liable for any unauthorised disclosure/publication of those details: TOURNIER v NATIONAL PROVINCIAL UNION BANK OF ENGLAND (1924)1 K.B 461.

Abubakar Sani is a lawyer practicing in Kano

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16.08.2016

The Nigerian Bar Association (NBA) on Wednesday, August 10th held a dinner in honour of former InspectorGeneral of Police, Solomon Arase to mark his retirement from the Nigeria Police Force. Here are some of the personalities at the event. photos: Julius Atoi

L-R: NBA President, Mr. Augustine Alegeh SAN, former Inspector General of Police, Mr. Solomon Arase and his wife, Mrs. Agharase Arase

Minister of Solid Minerals Development, Dr. Kayode Fayemi (left) and DIG Operations, Mr. Joshak Habila.

Mr. Damian Dodo SAN (left) and Professor Paul Idornigie SAN

Mr. Jibrin Okutepa SAN (left) and Mr. Tawo E Tawo SAN

L-R: Special Adviser to the President, Senator Ita Enang, NBA General Secretary, Mazi Afam Osigwe and Mr. Ayo Falade

Mr. Akingbolahan Adeniran (left) and former Ekiti State Attorney General and Commissioner for Justice, Mr. Olawale Fapohunda

NBA President, Mr. Augustine Alegeh SAN and NBA Executive Director, Mrs. Ifueko Alufohai

Former NBA General Secretary, Mr. Emeka Obegolu (left) and Mr. Olalekun Thanni

High Commissioner Malaysia, H E Lim Juay Jin (left) and British High Commissioner, Andrew Carney

NBA General Secretary, Mazi Afam Osigwe (left) and Mr. Olagunju

NBA President Mr. Augustine Alegeh SAN in a group photograph with some of the outgoing Executives

Dr. Alex Izinyon SAN

L-R: NBA Publicity Secretary, Mr. Gbolahan Gbadamosi, NBA 1st VP, Mr. Francis Ekwere and Mrs. Ademu-Eteh

T H I S D AY TUESDAY AUGUST 16, 2016

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T H I S D AY • TUESDAY, AUGUST 16, 2016

BUSINESSWORLD

INDUSTRY

Wild Allegations against Fertiliser Manufacturers Crusoe Osagie discusses the allegation of threat to national security and the economy levelled against Notore and Indorama, the vehement responses from the companies and the implications of such sensitive declarations on the nation’s quest for inflow of foreign investment Nigerians are still at a loss as to the motivation of the Office of the National Security Adviser (ONAS) to declare that Notore Chemical Industries Plc, mostly owned by Nigerians and Indorama Petrochemical Limited, are threatening the nation’s economy and its security by their business activities.

Some analysts who said the accusations appeared to be unfounded and downright absurd, explained that the issue was tantamount to accusing a man who is without any insurance policy of willingly trying to burn down his own house and render his family homeless.

A social-economic rights activist, Mr. Omobude Agho, who spoke to THISDAY on the issue, explained that Notore for example, has a sprawling factory complex in Onne, Rivers State and distribution offices all over the country, from the north to the south, all valued in billions of dollars.

He stressed that the survival and profitability of Notore’s business are in every way, directly dependent on the peace, security and economic prosperity of Nigeria as a country and therefore, it is not in the company’s interest at all to threaten the nation’s peace and prosperity.

“How can such a company try to demolish the platform and foundation which guarantees its own survival?” he asked.

Omobude warned the federal government to be careful about the nature of comments it makes about companies that provide employment for thousands of Nigerians and keep several families fed and sheltered; pay taxes to government and help the country to preserve the very scarce foreign exchange that would have been used to import fertiliser for farmers if they had not invested in making the commodity locally.

He said such comments did not only discourage already existing investors, but also put off prospective investors who are contemplating whether to invest in the country or not, as no one would want to put investments in a country where security agencies threaten the existence of law-abiding businesses.

Notore Kicks After the controversial allegations were made, Notore, however, vehemently denied allegations that it is involved in activities which sabotage Nigeria’s security and economy In an apparent response to statements credited to the Office of the National Security Adviser (ONSA) in the media two weeks, the foremost manufacturer of fertiliser stressed that the allegations in no way represented the character and operation of their business.

According to Notore, “Our attention has been drawn to various publications in the media containing serious allegations about Notore Chemical Industries Plc (Notore). In the publications, Notore is alleged to be sabotaging Nigeria’s national security and economy by being a conduit for explosive materials as well as being “unpatriotic.” Notore is constrained to refute the allegations in the strongest terms.

“Notore has not been, is not, and has no intention whatsoever, of engaging in any activity that is detrimental to Nigeria. As a Nigerian company with predominantly Nigerian beneficial shareholders, Notore has always been committed and is focused on supporting initiatives of the Federal Government of Nigeria and championing the African Green Revolution with a focus on Nigeria.

“Notore is the premier producer of urea fertilizer in sub-Saharan Africa and has been in production for over six years. As the Champion of the African Green Revolution, Notore has as its core goal the enhancement of food production and food security in Africa, particularly in Nigeria. Part of its strategy to achieve this goal is to focus on sales in the local market via Notore’s extensive, controlled and award-winning distribution channels. In addition, Notore has and uses extension workers who are committed to the training of local farmers on best practices and the creation of ‘test plots’ to showcase the benefits of effective use of fertilizer on crops, the

Fertiliser creation of an effective and efficient distribution channel to ease access to fertilizers for the farmers, as well as boosting production capacity to meet the ever increasing demand of the Nigerian farmer.”

The Onne-based fertiliser makers and distributors said over the past several years, through its private extension services and controlled distribution channels, which include over 2,500 Village Promoters, it has reached over 3 million Nigerian farmers who have been impacted positively with increased yields.

It added that as estimated by a 2013 report by Propcom-DFID, an innovative, market-driven initiative of the United Kingdom’s Department for International Development (DFID) that aims to reduce poverty in Nigeria, over 33% of smallholder farmers in seven selected northern states learned at least one improved farming practice from Notore’s activities, leading to increased yields and income.

Notore said it also worked with the Federal Ministry of Agriculture and Rural Development, some selected states, and International Fertilizer Development Center (IFDC) in designing and implementing the fertilizer voucher program between 2009 and 2012, which greatly improved the administration of the fertilizer subsidy program by increasing the reach to target beneficiaries from a previous 11% to as high as 60%.

“The success of this voucher program became the basis on which the Federal Government created the Growth Enhancement Support Scheme (GESS) e-wallet program, which sought to improve agricultural productivity through the effective and efficient delivery of farm inputs such as fertilizer, which increased yields. It is through these and other activities that Notore has helped and continues to help build Nigeria’s agricultural and economic landscape, which has a direct impact on the country’s GDP. “As part of its commitment to Nigeria, the bulk (about 75%) of Notore’s production of fertilizer is focused on the Nigerian market, and because Nigeria largely has only one planting season, the majority of this production is sold locally during this peak season. Notore only exports limited amounts of fertilizer during the dry season -- when there is essentially zero demand for fertilizer in Nigeria-- yet continues to work aggressively with the Federal Ministry of Agriculture and Rural Development to encourage and stimulate farming in Nigeria during the

off-season in order to further its core goal of increased food production and food security in Nigeria. For instance, Notore has been a key partner in the CBN Anchor Borrowers’ Program aimed at increasing the local production of key crops. During the recently completed pilot of the rice anchor borrowers’ program in Kebbi State, Notore supplied all the urea fertilizer used in the program. It is important to note that the company delivered the requested fertilizer for the program within a very short period to all the locations in which the program was implemented in the state. In continuation of that program, Notore has also committed to supplying all the urea fertilizer required for the program during the current rainy season in all 11 target states.

“Another example of Notore’s aggressive efforts to stimulate farming in Nigeria is its successful onion intervention in Kebbi State.

In 2010, an unprecedented severe case of onion twister disease in Kebbi State, similar to the recent tomato crisis, crippled all farming activities involving onions. As of the time of Notore’s intervention in 2010, onions were in short supply with high demand, thereby raising the price to an all-time high of N40,000 per bag. However, following Notore’s intervention, involving a combination of experiments to test different options to combat the problem as well as educating farmers on the need to adopt best practices, the dry season of 2011-2012 saw a huge rise in produce availability. This pushed down the price per bag of onions from about N7,000 in December 2011 to N1,000 in May 2012.

“Urea fertilizer is crucial for the agricultural revolution in Nigeria and for the millions of farmers who rely on it to achieve food security and self-sustenance. Notore produces urea solely for agricultural purposes, and urea, on its own, is harmless. It is only when people that are involved in nefarious activities further process urea by mixing it with harmful substances, such as nitric acid, that the combination can become dangerous. Notore does not produce, import, or in any way use nitric acid. Furthermore, Notore has worked and continues to work with government agencies to ensure that its products move strictly through its controlled distribution channels to be delivered directly to official distribution partners and then into the market.” the company stated.

Commendations for Notore

Federal Ministry of Agriculture in the recent past, commended Notore support for green revolution programme for food production in the country, noting that food security is indeed a matter of national security.

The former Minister of Agriculture and current President of the Africa Development Bank, Dr. Akinwunmi Adesina, earlier explained that Nigeria must learn from Asian countries by tapping into all resources of its farmers across the nation and delivering a green revolution that will make Nigeria self-sufficient in food production.

“We must turn Nigeria into a bread basket, a power house for food production. To do so, we must make a fundamental paradigm shift.

Agriculture is a business, not a development programme. It must be structured, developed, resourced and financed as a business.

“One sure way to achieve the nation’s food self-sufficiency goal is the astronomical increase in farm output that comes with the adequate use of fertiliser and this is where Notore Chemical Industries Plc, the foremost fertiliser manufacturer in Africa, south of the Sahara including South Africa, could easily pass as the most thoughtful investment in Nigeria in the past decade and half.

“Farm output in Nigeria could easily be 20 times of what it currently is if fertiliser is accessible to farmers in Nigeria every time and anytime. But being one of the commodities around which much corruption thrived, it had been a near impossibility for real farmers to get fertiliser without first going through portfolio farmers and politicians.

“All these non-farming fertiliser merchants were interested in was the massive government subsidy that accompanied the commodity, which of course, never got to actual farmers in the far-flung rural communities where most of them lived and farmed.

“Thankfully, the story today is different because all a farmer needs to have now is a token and he would have a 1kg packaged Notore Fertiliser for his nutrient-hungry crops. As it stands now, the only people that qualify for any form of subsidy are those who have invested in the local production of this desperately-needed commodity because they can easily transfer the subsidy to farmers with cheaper fertiliser prices,” he said.

Continued on page 27

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T H I S D AY • TUESDAY, AUGUST 16, 2016

BUSINESSWORLD

NEWS

Shell Sets New Record on Nigerian Content with Local Refurbishment of Subsea Tree Stories by Ejiofor Alike Shell Nigeria Exploration and Production Company (SNEPCo) achieved significant savings in the cost of subsea equipment through an initiative which has seen the refurbishment of five Subsea Trees in-country led by Nigerian engineers, thus setting a new record in the federal government’s local content policy in the oil and gas industry.

The Nigerian Oil and Gas Industry Content Development Act of 2010 seeks to domesticate a large chunk of oil and gas industry jobs within Nigeria to build local capacity and capability, curb capital flight and boost the country’s economy.

A Subsea Tree is an arrangement of valves and other components installed at the wellhead to control and monitor crude oil and gas production and injection flow.

SNEPCo embarked on a Tree Refurbishment initiative in 2013 to ensure timely delivery of the equipment at lower cost for the Bonga Phase 2 project, which comprises drilling and hook-up

Manufacturer at Onne in Rivers State with cost of similar Subsea Tree of in-field wells within Bonga. the scope of work to entail Equipment The Managing Director of “the retrieval of Subsea Trees (OEM) to international stan- Nigerian engineers and techni- refurbishment in Europe. cians playing key roles. The We are currently refurbishing SNEPCo, Mr. Bayo Ojulari said for disassembly, repair and dards and codes”.

“The work is done at the expenditure on this work three Subsea Trees,” Oladunoye in a statement at the weekend rebuild following procedures that apart from saving costs, developed by the Original OEM/SNEPCo logistics base in Nigeria aligns with the added. his company embarked on the local refurbishment to help local engineers to acquire skills “Beyond cost consideration, we were also looking to indigenise the know-how so that Nigerian engineers can acquire the necessary skills. We are pleased with this success story.

The first Subsea Tree under the programme was installed on schedule in May 2015.

This was the first of its kind re-using a Subsea Tree fully stripped down and refurbished locally in Nigeria, with all of its original functionality restored,” said Ojulari.

SNEPCo saves about $6 million for every refurbished Subsea Tree, and this is delivered within 15 months as against 36 months for newly manufactured ones.

SNEPCo’s Engineering Manager in charge of Subsea and Pipelines, Mr. ‘Debo L-R: Group Head, Communications and Marketing, Smile Communications Nigeria Limited, Nicolene Van Zyl; Group Managing Director, Oladunjoye, who led the Godfrey Efeurhobo; and Chief Corporate Services Officer, Tobe Okigbo, at the unveiling of the lowest 4G LTE Voice Call rate in Nigeria refurbishment team described by Smile Communications Nigeria Limited in Lagos ... recently

A NEW OFFERING

Kaduna PENGASSAN Moves to Cushion Effects of Oil Price Drop on Members The Kaduna Zone of the Petroleum and Natural Gas Senior staff Association of Nigeria (PENGASSAN) has reiterated its plan to empower its members against all vagaries effects of the global oil price plunge that is affecting the industry and the Nigeria economy as a whole.

According to the senior oil workers statement signed by the Chairman of Kaduna Zone

of PENGASSAN, Comrade Abubakar Yusuff, despite major advancements in labour and management relations in Nigeria during the past decades, there still persists considerable distrust and antagonism among parties involve in industrial relations.

As a way of reducing the frictions and distrust among the parties, he noted that the zone has packaged a

three-day workshop with the theme: “Global trend & Security Challenges in Oil & gas Industry in Nigeria, critical challenges and prospects from all stakeholder’s perspectives,” in Minna, Niger State.

Yusuff further stated that the workshop, which will commence today, will be declared open by the Governor of Niger State, Alhaji Abubakar Sani Bello.

According to him, the workshop will explore the developments, analytically, consequently and explanation for the major peculiarities of “empowering member” in Nigeria system of industrial relations.

“The main rational of the workshop is to bring all stakeholders together to identify the current global trend in the oil and gas industry, examine

security challenges in the sector, know the labour challenges of the post-Petroleum Industry Bill (PIB), identify challenges confronting unions and managements on issues of Collective Bargaining Agreement (CBA) and address labour issues and legal challenges in corporate restructuring, outsourcing and causal/contract system of employment,” he added.

He stated that with the

ongoing reforms in the oil and gas sector, there is need to also have a general overview on industrial relations system in the industry so as to address the labour welfare from the employment till retirement.

Yusuff noted that at the end of the workshop, participants will be able to come up with an acceptable equilibrium or template among the various stakeholders

WILD ALLEGATIONS AGAINST FERTILISER MANUFACTURERS Forbes once wrote of the Notore ingenious investment, saying: “From time to time, we will write mini-profiles of outstanding African companies, which are constantly providing audacious and innovative solutions to some of the continent’s most daunting challenges.

“Today, we profile Notore Chemical Industries, a pioneering Nigerian Fertiliser Company that is boosting Africa’s farm yields and working assiduously towards accelerating the continent’s green revolution. If African agricultural yields could be raised to European levels, it would be possible for the continent to provide at least 50 per cent more food than it currently does.

But it takes fertiliser to make this happen.

Currently, Notore Chemical Industries, a $400 million (revenues) Nigerian company is the only producer of urea fertiliser in sub-Saharan Africa, including South Africa.

“Urea is a by-product of the oil and gas industry, which alongside agriculture, is Nigeria’s other major industry. By making fertiliser more accessible to farmers through its supply chain and pricing, Notore is helping to stimulate the local production of foods such as rice and sugar, increasing self-sufficiency and reducing the continent’s dependence on imports.

“And it is some dependence – last year alone, African countries spent over $30 billion importing food. Seven out of ten Africans earn their living from farming. Yet, even at this time of high unemployment, farming remains a low-input and low-output enterprise, unpopular with the young – a critical imbalance which Notore aims to redress with education programmes and training,” Forbes stated.

Notore also received accolades at the Ernst & Young’s Strategic Growth Forum in Africa.

A report released by the organisers of the forum noted that Notore was picked as an example of business innovation excellence, during a panel session titled ‘transforming your supply chain: better, faster, cheaper across Africa and beyond’.

According to reports from the global event,

supply chain and logistics experts deliberated on how effective supply chain management can be a critical differentiator in the face of poor infrastructure. “Notore’s supply chain process was featured as a success story within a case study on ‘Innovation in Supply Chain in Africa’. In building its distribution network, Notore works with a number of carefully selected partners to guarantee the availability and maintain the quality of products to all communities nationwide.

It has developed products in pack sizes (1kg, 10kg, and 50kg) and pricing that address the unique needs of each user,” the conference noted.

As part of efforts to ensure that Africa comes top among the fastest growing economies over the next five years, Ernst & Young recently brought CEOs, chief financial officers, leading entrepreneurs, investors and industry experts together. This was part of the Ernst & Young Strategic Growth Forum event series.

According to the organisers, “the exciting developments in Africa are creating a business environment rich with opportunities and the time is ripe for the innovative strategic conference themed ‘Unlocking value to grow beyond the possible’.”

During a tour of the plant by Adesina, Notore noted that it has achieved 98 per cent capacity utilisation for Ammonia production and 100 per cent for Urea, and the company will produce 600,000 metric tonnes of fertiliser in the current year. Okoloko, who revealed this, said Notore now exports fertiliser to Cameroon, Togo, Ivory Coast, France, Uruguay, Senegal and Angola. This, according to him, “is proof of the international standard and quality of our products”.

Notore accounts for 100 per cent of the Urea market in Nigeria because most of the big importers of Urea no longer import it. The company’s NPK plant was launched few months back. Based on this, the company possesses a huge share of the market.

Okoloko stated need to engender an import substitution programme in such a way that

“we actually produce for our local market and export the excess only after the local market has taken in its volume”.

“And that way we can conserve foreign exchange in Nigeria, and begin to earn foreign exchange from any additional export outside what is demanded in the local market and grow the country into one of the leading economies in the year 2020,” he said.

Listing his company’s achievements to date further, Okoloko said: “We participated in the Federal Government fertiliser supply in 2009, 2010 and 2011. We worked with the International Fertiliser Development Centre (IFDC). “PropCom, IITA, the World Bank and Alliance for a Green Revolution in Africa (AGRA), built a world class supply chain network supporting agro-dealers and village programme scheme and commenced seed business,” he said.

He explained the concept of commercial farming and subsistence farming: “A lot of people believe that commercial farming means large scale farming. Yes, in a way that is right. But there are certainly different types of regions that have certain types of farming structures.

“In America or in the first world, you can actually have big commercial farmers. But in areas like China, India, Thailand, Pakistan, where farming today has reached commercial levels, those farmlands are in smallholder farms structures. The big exports that come to us here in Nigeria are products of these smallholder farmers put together,” he added.

The Minister of Agriculture and Rural Development commended Notore for its good structure and for being a well-run company.

He noted in particular that Notore appropriately has in its mission statement ‘improving the lives of people. “What is important in agriculture is improving the lives of people,” he said.

The minister faulted the claim in certain quarters that fertiliser causes a lot of environmental problem in Africa, therefore, what Africa needed “is low input or in fact no input at all.”

“No, that is not true. The reason the yields are low in Africa is not because we are misusing fertiliser, it is because we are not using fertiliser at all. The deforestation rate in Africa today is 200 per cent of the global average just because we are not using fertiliser.

“So, most of the production today comes out of the expanding cultivated area, not from increase in yield per unit area. And there is no way we can continue with that in Nigeria. That is not environmentally sound or sustainable. So for us to feed ourselves as a country, we must fundamentally change the use of seeds, the use of fertilisers, and water,” he added.

On the issue of seeds, he commended Notore for its foray into seed business. “Life of agriculture starts with seeds,” he said.

“We are using today in Nigeria 8,000 metric tonnes of seeds for a population of 150 million people. Kenya’s population is 40 million and they produce and use 40,000 metric tonnes of seeds. “The fundamental reasons why our yields are one of the lowest in the world is because we are not using improved seeds. And I am determined that during my term as Minister of Agriculture in this country we will grow the seed sector in a very strategic way,” he added. Notore Chemical Limited acquired the former National Fertiliser Company of Nigeria (NAFCON) for $152 million in 2005, and signed a 20-year gas plan in 2006 with Nigerian Gas Company. In 2007, it raised $222 million in debt from a consortium of Nigerian banks.

Notore recently signed a technical service agreement with Tata Chemicals of India. As technical partner, Tata, helps Notore in meeting its medium term expansion plans through the optimisation of its operations in Onne, Rivers State.

The technical partnership agreement is a significant move for Notore, as it seeks to expand by leveraging on the expertise of the management of one of the most efficient fertiliser plant in the world.

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PROPERTY & ENVIRONMENT ‘LagosFreeTradeZoneHasEnormousSocio-EconomicBenefits’ There are emerging investment opportunities in the Lagos Free Trade Zone that discerning investor should take advantage of, says the Chief Executive Officer of Pazino Engineering and Construction Company Limited, Mr. Patrick Agbaza. He spoke to Bennett Oghifo

T

here is huge return on investment in the Lekki Free Trade Zone that prospective investors should take advantage of, the Chief Executive Officer of Pazino Engineering and Construction Company Limited, Mr. Patrick Agbaza said. “What is evolving in this area makes it imperative for everybody to invest in this axis.

Agbaza said they are a real estate and civil engineering company and that they engage in managing estates, developing estates, road construction, drainage building, dredging and land reclamation, among other civil works.

Pazino, he said is operationally located in the Ibeju Lekki axis of Lagos because of the industrialisation that is hitting this part of Lagos on account of the Free Trade.

Agbaza said he has great antecedents in real estate development and reclamation works, stating that he was involved in the Calverton Helicopter project, Lagos; Benavista estate site reclamation; Eleganza Estate site reclamation, among many others.

Pazino, he said has some sturdy residential and commercial developments in the zone. “We have eight estate schemes ongoing; and numerous non-estate schemes. He explained that the non-estate schemes were being built or built for individuals. The company, he said has Akodo Peninsula Gardens in Akodo-Ise in Lekki Free Trade Zone, stating that the Akodo Peninsula Gardens has a size of 648sqm with price put at N1,200,000; Citadel of Dreams Gardens, size: 550sqm, price: N4,000,000; Almonds & Vines Phase 1, size: 550sqm, price: N3,500,000; Amazing Grace Gardens Phase 2 Eluju in Ibeju Lekki, size: 550sqm, price: N3,500,000, among others.

The company also has a scheme in Epe, an area that is fast opening up for investors to take

Agbaza

advantage of, Agbaza said.

On purchase plan, he said the company is negotiating with some mortgage banks to assist prospective buyers of their products have stress-free experience. Also, buyers can pay in installments with special arrangement with the company to fit their various projects, he said.

Prospective buyers, he said could also take advantage of what he described as the Pazino Business Network (PBN), which is the marketing department for Pazino Engineering and Construction Company Limited. PBN, he said is out to transform the real estate marketing

industry through Multi-Level Marketing/ Network Marketing.

“With our passion to create millionaires and engage the Nigeria youth, we opened up our business frontiers to every enterprising individual within and outside Nigeria the opportunity to create wealth and live the life of their dreams.

We have made it easy for people to partake in this trillions of Naira industry.”

The Real Estate and Network Marketing industries, he said have made more individuals millionaires than any other industry in the history of business. Every successful individual

out there made or grew their wealth through real estate and the wise young man or wage earners invest in Real Estate.

“Have you ever seen any wealthy or successful man or woman without a piece of real estate and network of like minds? Do you know that the basic need of man are Shelter, food and clothing, and are all connected to real estate?

Do you know that real estate and network marketing is the only industry that brings the rich, poor, educated, illiterate and everyone to one roundtable? Do you know that Real Estate and MLM is the only industry that you can make millions in one deal with you investing very little? Do you know that with our system you can earn from your direct effort and that of those you introduce into this business?”

All the estates are in developmental stages with all the site clearing, gates and road networks being done.

They will have standard common facilities; centralized electricity; water provision; security; play and shopping areas, among others.

These properties, he said are set to appreciate in a short time, and urged prospective buyers to move in now. “We have already set aside the number of plots to be sold in each estate and once the threshold is reached we will stop and fully concentrate on construction.”

In terms of building, in some areas, they would be constructed by Pazino while others would be left to the owners but with strict supervision for them to conform to estate standards and specifications.

The estate would be managed by the Pazino owners association that would meet regularly to determine what to do in the estate. We want people to have value for their money. The landscaping would be excellent, he said. “We will do a lot of landscaping.”

FG Begins Repair of Apapa-Ijora Bridge Bennett Oghifo The Federal Government has started the repairs of the Apapa-Ijora bridge that is showing signs of distress.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, last Sunday closed the outward bound lane of the bridge to traffic from Apapa to enable Julius Berger effect the repairs.

The bridge, like most others in the country need urgent attention, said Fashola at a meeting with stakeholders before the closure of the bridge, recently.

The Apapa-Ijora is part of the ‘Eko Bridge System’, which was bequeathed to Lagosians in the Military Era, starting with Gen. Gowon as Head of State and Brig. Mobolaji Johnson as Governor, according Engr. Afolabi O. Adedeji, Chief Executive Officer of Ethical Business and Management Associates (‘EBAM’), Trainers & Consultants in Facilities Management, among others.

Adedeji said, “The Eko Bridge network belongs to the class of what is known in the ‘jargon’ (or Language) of Highway Engineering, as “deck on pile concrete bridges”! If I am not mistaken, the (reinforced concrete) piles are also encased in steel. As a ‘rule - of - thumb’, such structures if well maintained and are utilised in line with normal Design Parameters, should last for upwards of 25 to 35 years.

“If we start counting from 1975; that takes us to around year 2010, as a rough guide. The anticipated Design Life can be attained and extended. There is also adequate Technical knowledge (and experience) to repair damaged Bridges, submerged structural elements like Piles, the SOFFIT or underpart of the Deck, etc., if funds are available. Since Abuja took over from Lagos as the Nation’s Political Capital, the latter has become an ever increasing challenge.

Part of Apapa-Ijora Bridge being rehabilitated by Julius Berger

Asphalt overlay of the wearing course (or Deck Surface) of Eko Bridge.”

He said the asphalt overlay of Eko Bridge has been done at least twice in the last 18 years. Apart from Financial Cost, such major rehabilitation jobs are associated with enormous disruption to the Flow of vehicular traffic, socio-economic activities, etc. The consequence

of doing nothing ‘end point catastrophic collapse’, is even worse!

On how to extend the useful ‘service life’ of Eko Bridge, he said it could be done through emergency repairs and rehabilitation, adding that this should be implemented.

“Thereafter, regular maintenance and facilities Management should follow a clearly laid out

plan; a trailer park for fuel tankers, heavy duty vehicles enroute to Apapa Warehouses, the Ports, etc., should be built; the Fourth Mainland Bridge if built soon will reduce “pressure” on existing Bridges; submarine structural elements should also be repaired; traffic management measures, weigh Bridges, etc., will also help.”

Adedeji said, “Multimodal (or Intermodal) Transportation will also ease out things for commuters, whereby Water Transportation

by Boat or Ferry can be combined with Light Rail and even Helicopter Shuttles for those in sensitive jobs, etc. Apart from just money, Institutional Factors, socio-political factors, etc., also come into play when decision making for Road and Bridge Works is being made.”

Adedeji said his suggestion “is easier said than executed! Lagos is an APC State and Abuja (i.e. the Federal Government) is now APC too. But, Eko Bridge is still under Federal jurisdiction. Who pays the bill? Who takes “credit” for the job with the masses?

Will there be sharing of expenses between Abuja and Lagos? Is there going to be cost recovery through tolls? Look at our current economic plight as a nation - even salaries are ‘hard’ to pay!”

He said observation[s] made about “shaking”, that is, vibrations noticed when vehicles are plying the Bridge, wide gaps at expansion joints, perhaps some ‘sagging’ of parts of the Deck, etc., tend to support the conclusion of a ‘threat’, at least in terms of the ‘serviceability’ (or feeling safe) requirement.

“There are non-destructive tests that need to be carried out by appropriate experts with the right equipment in a laboratory, etc., for the supervising Ministry, Department, Agency, etc., to know for certain whether there is a basis for worry about ‘sudden collapse’ and/ or Structural Failure!”

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PROPERTY & ENVIRONMENT

New Group Promises to Meet Nigeria’s Housing Needs A new group of developers, launched in Lagos, recently, has promised to build homes for Nigerians at the lowest possible cost.

The project, known as the Low Cost Housing Developers Association, (LCHDA), compresses all the practitioners in the housing industry, including the unskilled in the housing industry.

Speaking to journalist, the initiator of the programme, Mr. Emmanuel Ogheide stated that the association is made up of architects, lawyers, building technologist, building engineers, civil engineers and all professionals in the building industry.

“It is a group of people who have come together to give back to society by way of making housing affordable, mostly by offering their expertise. So, what we do mostly is to touch lives in the society through the provision of accommodation. “In order to get this done we realised that a lot of people need housing or housing services, but the challenge is that it is above what they can afford, to make it affordable we have to come up with this scheme which ensure that the average person, the low income household or individual are able to afford and live in a decent accommodation.”

According to him, there are a lot of NGOs doing stuffs in the health sector, education, environment, sports etc,

which are good; we don’t have problems with that, but no one is looking at this all critical sector.

“We think it’s time we began to look at the rate at which Nigerians are becoming homeless; Nigerians are living in houses that are not conducive for human habitation.”

He noted that the association believes that having a decent accommodation is a right not a privilege. “Accommodation is a right and not a privilege.

Everyone should live in a decent accommodation. How can we talk about living in a decent accommodation when an average person living on the minimum wage earns N18, 000 per month.

“How can such a person afford to live in a decent accommodation? Going by that the current situation in our environment, many people will not be able to own a property in their life time neither lives in a decent accommodation, because the so call minimum wage that the government is offering cannot even sustain the feeding need of an average family.”

He further explained that, Article 25, Subsection 1 of the Universal Declaration of Human Right of the United Nation says, “Everyone has a right to a standard of living, adequate to the health and wellbeing of himself and of his family including school, clothing, housing, medical care and basic social services, and

the right to security at the event of unemployment or old age and lack of livelihood in circumstances beyond their control.

“So everyone, whether working or not has a right to housing that is why government all over the world are coming together to provide what is called

Low Cost Houses. In some places, government funds it, in some places it is like a way the mortgage institutions give back to the society. In some places it is the NGOs that who come together to initiate this scheme to the benefit of the larger society.”

On how they would get resources, he said, “Of course

we are talking with some international organisations such as the United Nations Habitant, which is the United Nation’s arm that handles housing. For instance, they invited me to two programmes on the 29th of June, one in South Africa and another in Switzerland but I couldn’t make any because of some

engagements back home; we had programmes and things we were doing in this regard that warranted me to stay back.

“If the United Nations is giving us the necessary support why not the Nigerian government, why not religious organisations, I must also tell you that we can’t do it alone.”

L-R: National Technical, Sales Manager, Nigerite Ltd, Banjo Abimbola; Managing Director, Asiwaju Agbomeji & Sons, Alhaji Agbomeji Monsuru; Managing Director, Nigerite Ltd, Mr. Frank Le Bris and Chief Executive Officer, David Excellence Ltd, David Shaleye, during Nigerite’s interactive meeting with distributors at Lagos Airport Hotel... recently

Nigerite Partners Distributors on Business Growth Averda to Build Republic of Congo’s First Municipal Solid Waste Landfill Nigerite Limited continues products,” he said.

Banjo further noted that to partner with its numerous distributors across the country on ways to strengthen their relationship and further boost the growth of businesses between both parties.

The hint was dropped during Nigerite Distributors Forum held at the Lagos Airport Hotel, Lagos, recently. Speaking at the occasion, National Technical Sales Manager of Nigerite, Engr Abimbola Banjo said that the forum was to create a win-win situation where both the distributors and Nigerite could further expand their businesses and make good profit.

Banjo noted that the meeting was to get feedback from the distributors and look for possible ways to serve them better, adding that it was also an avenue to showcase the company’s new product “KalsiCeil Batten” used as an alternative to wooden tie rods.

According to him, the forum which started in Lagos State last month would run in most of the cities in South West region including Ogun State and in Ilorin, Kwara State.

“As part of our marketing activities and strategy, we have decided to be having regular meetings with our distributors to know how they are going about their businesses, to know some of the challenges that they are facing and to know how we can assist them in improving their performance and to get feedback generally about our

with the way the relationship between Nigerite and its distributors has been going on, he was optimistic that both parties would continue to experience growth and expansion in their businesses.

He said that apart from that, the company would invest in new line of products and equipment which would go a long way in its expansion drive.

“We are going to improve on our network too because increasing the turnover and the output, you have to expand your scope, so we as a company, we are trying to expand our scope, get some more distributors in some other areas and ensure that we achieve our predicted turnover” Banjo said.

Enumerating the benefits accrued to the distributors like giving them shelter, appreciating them with Long Service Award for those of them that have stayed with the company for over a decade and above, Banjo added that the management of the company would speedily address all the challenges raised at the forum so that the relationship between both parties would continue to be a cordial one.

While expressing his gratitude to the management of Nigerite Limited, one of the distributors at the forum, Engr.

Ade Shaleye said that he was optimistic that all the challenges raised at the meeting would be resolved by the company.

ILn july 2016, members of the parliamentary committee of the Congolese Government and the economic and financial commission of Congo national assembly, representatives of Brazzaville municipality and the mayors of pointe noire and Brazzaville, visited Lifoula landfill site – this will become republic of Congo’s first public and fully environmentally compliant municipal solid waste landfill.

Located in the vicinity of Lifoula village and entirely designed, built and operated

by Averda, the global waste management solutions provider, Lifoula landfill will stretch across 40 hectares of land, it will have eight storage cells and an operational lifespan of 15 years.

Strictly designed as a municipal solid waste landfill, Lifoula will open its first cell in January 2017, the remaining seven cells being rendered operational in a phased approach, with the last cell scheduled to be commissioned in October 2030. with a country-wide unemployment rate of 46.10% according to the latest 2016 data from trading economics, Averda’s newest initiative in Congo will boost Brazzaville’s economy, as the total number of Congolese employed by Averda in its first year of operations in the country will reach almost 1,500. the new landfill, a first of its kind not just for the

Republic of Congo but for the central african countries, will be equipped with a leachate collection and treatment system, a system for the capture and reuse of biogas released by the waste landfilled, and with a system for the collection and treatment of the surface water.

In a recent study published by “renewable and sustainable energy reviews”, it was argued that up to 363 pj (1.0 pj = 280,000,000 kwh) of electricity could be generated by landfill gas alone across the african continent by 2025, if the municipal solid waste produced by the african countries is appropriately collected, treated and disposed of. the estimated biogas generation capacity was calculated

by Averda’s technical experts to reach 2,000 - 2500 m3/h after the first four years of landfilling operations. to ensure a safe and fully environmentally compliant operation of Lifoula landfill, aligned with the national and international standards and regulations in the field, Averda will provide a robust and constant quality audit of the waste designated to reach the landfill.

Mr. Mohamad Ghalayini, Averda Congo Managing Director, said: “we are pleased to see the commitment and dedication of Brazzaville authorities to make the capital city of Congo a cleaner and

safer place to work and live in. the new landfill will not only provide an infusion of much-needed capital investment and job creation in Brazzaville, but it will also capitalise on the by-products

of waste generation, where the food waste will be turned into organic compost and supplied to the Congolese farmers while the biogas emanated by the landfill can provide electricity to the grid.”

‘Buildmacex Nigeria Exhibition to Boost Construction, Interior Sectors’ Building, construction, machinery and interior exhibition, known as Buildmacex Nigeria is a platform for professionals in the industry to present their ideas and prducts.

The Managing Director of Atlantic Exhibition, Ayodeji Olugbade, who spoke on the building and construction industry of Nigeria, said there was need to promote the sector in Nigeria, adding that for this reason he came up with the exclusive idea of Building, Construction, Machinery and Interior Exhibition, known as Buildmacex Nigeria.

He said the reason for the exhibition was to promote the building and interior sectors in Nigeria and, in West Africa at large; the exhibition will also create avenues for questions from experts of the industry on ‘why’; questions like, Why do we have issues of building collapses in Nigeria? How do

we determine the best foundation for Buildings? Where do we get quality products for building materials? What is happening to the Millennium Towers Building in Abuja? The exhibition will also serve as an integrated platform of opportunities where visitors and participants will meet directly with manufactures, government parastatal and top distributors in the Industry.

Exhibitors will be coming from Turkey, UAE, China, India, United Kingdom, Lebanon, America, Ukraine, Nigeria and other various countries, they will be showcasing quality products of Building materials, Machineries, Construction tools, water treatments, Interior and exterior designs. The exhibition is open to the professionals of the industry like the Architects, Quantity Surveyors, and Interior designers, Builders, Distributors, Wholesalers and Retailers.

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INTERNATIONAL

email:foreigndesk@thisdaylive.com

Kurdish Forces in Fresh Push to Capture Mosul from IS Ku r d i s h Pe s h m e r g a forces launched a f re s h a t t a c k o n I s l a m i c State (IS) forces early yesterday as part of a campaign to capture Mosul, the militants’ de facto capital in Iraq, Ku r d i s h o f f i c i a l s s a i d .

The advance began after heavy shelling and air strikes by a United States-led coalition against IS forces, a Reuters correspondent r e p o r t e d f r o m Wa r d a k , 30 km (19 miles) southeast of Mosul.

The militants fought back, firing mortars at the advancing troops and detonating at least two car bombs. Clouds of black smoke rose from the area and dozens of civilians fled in the direction of the Peshmerga lines, brandishing white flags.

A Pe s h m e r g a c o m mander said 11 villages had been taken from the ultra-hardline Sunni m i l i t a n t s a s t h e t ro o p s h e a d e d t o G w e r, t h e target of the operation, 40 km (25 miles) southeast of Mosul.

Repairing the bridge that the militants des t roye d i n G w e r wo u l d a l l o w t h e Pe s h m e r g a

to open a new front around Mosul. The bridge crosses the Grand Zab river that f l o w s i n t o t h e Ti g r i s .

The Iraqi army and t h e Pe s h m e r g a f o r c e s of the Kurdish self-rule region are gradually taking up positions around Mosul, 400 km (250 miles) north of Baghdad. It was from M o s u l ’s G ra n d M o s q u e in 2014 that Islamic State leader Abu Bakr al-Baghdadi declared a “caliphate” spanning regions of Iraq and Syria.

Mosul is the largest urban center under the militants’ control, and had a pre-war population of nearly 2 m i l l i o n . I t s f a l l wo u l d mark the effective defeat of Islamic State in Iraq, according to Iraqi Prime Minister Haider al-Abadi, who has said he aims to retake the c i t y t h i s y e a r.

The Iraqi army is t ry i n g t o a dva n c e f ro m the south. In July it captured the Qayyara airfield, 60 km (35 miles) south of Mosul, which will serve as the main staging post for the expected offensive.

T h e Pe s h m e r g a o p e ra t i o n on Sunday “is o n e o f m a ny s h a p i n g operations that will also increase pressure on ISIL in and around M o s u l ,” s a i d t h e Ku rd istan Regional Security Council in a statement, u s i n g a n o t h e r a c ro ny m to refer to IS. The preparation for the offensive on Mosul “is approaching the final p h a s e ,” B r e t t M c G u r k , the U.S. envoy to the coalition fighting the m i l i t a n t g r o u p, s a i d i n B a g h d a d o n T h u r s d a y.

He said the planning included humanitarian considerations.

Once the fighting intensifies around Mosul, up to one million people could be driven from their homes in northern Iraq, posing “a massive humanitarian problem”, the International Committee of the Red Cross said last month.

More than 3.4 m i l l i o n people have already been forced b y c o n flict to leave their homes across Iraq, taking refuge in areas under control of the government or in the Kurdish region.

Japan Donates $3m for Post-insurgency Projects in North-east Michael Olugbode in Maiduguri The three most affected states by the Boko Haram insurgency in the North-east states of Borno, Adamama and Yobe, yesterday received three million dollars from the Japanese government to fund projects in areas of livelihood support and social cohesion, deradicalisation, counterterrorism and migration.

One of the governors of the beneficiary states, Alhaji Kashim Shettima of Borno State, at the launch of the projects in Maiduguri, described the gesture of the Japanese government as timely.

He said: “What is more pleasing about the Japanese intervention this time around is the fact that this support is being extended not only to Borno State but also to our very hospitable sister states of Adamawa and Yobe who have had fair share of the unfortunate Boko Haram crisis.”

“The Post-conflict Recovery and Peace Building Assessment Report which was produced with the full participation of the World Bank, the United Nations, the European Union and Nigeria’s presidency put

the destructions suffered as a result of Boko Haram to the tune of nine billion US Dollars in the northeast. The report verifiably estimates six billion dollars worth of destructions in Borno alone. Of course, Adamawa was badly heat and so was Yobe as they both deserve to be well supported,”Shettima said.

“We are happy that while we are positively looking forward to the World Bank, the Japanese government has set aside three million US Dollars. In case anyone is wondering, this amount is equivalent of at least one billion naira. Words cannot convey our depth of gratitude to the Japanese and to all our international and local partners that have stood by us” “The choice of the Japanese government to focus on Early Recovery and Social cohesion; De-Radicalisation and Counter- Terrorism as well as migration is no doubt well thought out. Citizens of Adamawa, Borno and Yobe States are in different parts of Nigeria as a result of the insurgency,” he added.

According to the governor: “Some of IDPs are in Cameroon, Niger and Chad taking refuge after

fleeing from attacks. Our priority like the Japanese got it right, is to help our traumatised victims of the insurgency to get back their means of livelihood through agriculture and other businesses.

These comprises fixing their hospitals, schools, markets and also rebuild municipal buildings like council secretariats, police stations, courts and power stations so as to put civil authority in place to create avenue for civilised residency”.

“We need to put citizens back to productivity, back to their farms to produce their own food; we need to rebuild their safe homes, attract them to their communities by getting them out of IDP camps to restore their dignity and sustainable livelihood”.

In his remarks, the Japanese Ambassador to Nigeria, Mr. Sadanobu Kusaoke, said his government resolved to offer the aid due to its concern on the plights of the victims of insurgency in the north-east.

According to Mr. Kusaoke Japenese government was committed to assisting victims of natural disasters acrosd the West African region, saying the latest intervention was in line with its humanitarian service project.

38

TUESDAY AUGUST 16, 2016 T H I S D AY

39

TUESDAY AUGUST 16, 2016 • T H I S D AY

INTERNATIONAL

Thai Police Find More Unexploded Bombs Thai police over the weekend found and defused five explosive devices that had failed to detonate when an as yet unidentified group carried out a series of deadly bomb attacks on popular tourist spots late last week.

Police said they had arrested one suspect following the bomb and arson attacks on Thursday and Friday that killed four people and wounded dozens more in some of Thailand’s best-known southern resorts and islands.

The attacks came just days after Thais voted to accept a military-backed constitution that the ruling junta, which seized power in 2014, has said will lead to an election by the end next year.“These acts were undertaken by a group in many areas simultaneously, following orders from one individual,” Pongsapat Pongcharoen, a deputy national police chief, told reporters yesterday, without elaborating.

No group has claimed responsibility for the attacks.

Analysts have been saying

suspicion would inevitably fall on enemies of the ruling junta aggrieved by the referendum results, or insurgents from Muslim-majority provinces in the south of the mostly Buddhist country.

Two incendiary devices in mobile telephone power packs were found in a market in the upscale resort of Hua Hin on Sunday, the interior ministry said in a statement. A bomb disposal team defused both, and local police said the devices had been there since Wednesday.

The resort was the scene of the most devastating of the wave of bombs when a blast ripped through an alley in a bar area on Thursday evening. There were two more blasts in the town less than 12 hours later.

Another fire bomb was found on the island of Phuket on Sunday and defused, local police said. It had been set to detonate at 3 a.m. on Friday (1600 ET on Thursday), local police said. In Phang Nga, two devices were found on Saturday

near a market that was torched in an attack early on Friday.

“One worked and the other two didn’t,”Phakaphong Tavipatana, the governor of Phang Nga, told Reuters, adding that police hoped to find fingerprints on the defused devices. Phuket and Phang Nga were both hit in the attacks on Thursday and Friday, as was Surat Thani, a city that is the gateway to the popular islands in the Gulf of Thailand.

Attackers struck targets in seven southern Thai provinces, using bombs as well as incendiary devices that set shops and markets ablaze. A man has been arrested and was being questioned in connection to an arson attack on a supermarket in the southern province of Nakhon Si Thammarat, Pongsapat said.

Police believe more than one individual was involved in that attack, he said. The movements of other suspects were being monitored, he added.

Clashes Flare Southwest of South Sudan’s Capital Fighting flared in South Sudan late on Saturday southwest of the capital between forces loyal to the president and those backing the opposition, after clashes last month raised fears of a slide back into civil war. Steven Lodu Onseimo, the information minister for Yei region where Saturday’s clashes took place, told Reuters two civilians and a soldier were killed.

Witnesses had reported heavy gunfire around Yei, which lies on a road linking the capital Juba with neighboring Uganda. The government and opposition each blamed the other side.

Following the fighting in July, the U.N. Security Council authorized the deployment of a 4,000-strong protection force to support the existing 12,000-strong U.N. peacekeeping mission. “Our forces have managed to close JubaYei road. Our forces destroyed the government’s convoy that attacked our forces in the area,” opposition spokesman James Gatdet said by telephone.

The Yei information minister described it as an “ambush” of a government convoy by the opposition. Political differences between President Salva Kiir and his former deputy Riek Machar

first erupted into conflict in late 2013. They signed a peace deal in August 2015, but sporadic fighting has continued.

Machar had recently returned to Juba to take up his position as deputy again when the July clashes flared. Machar then withdrew with his forces from the capital. Kiir’s spokesman Ateny Wek Ateny said after Friday’s vote for extra U.N. troops that the government would not accept the new force, describing it as a U.N. bid to take over South Sudan. The United Nations had threatened an arms embargo if the government did not cooperate.

Suspected Rebels Kill 36 in Eastern Congo Suspected rebels killed at least 36 civilians in northeastern Democratic Republic of Congo, the provincial governor said yesterday, marking the deadliest massacre in the conflict-ravaged region this year.

The assailants hacked to death 22 men and 14 women late on Saturday in their homes and fields on the outskirts of the local commercial hub of Beni, Julien Paluku said in a statement. The population of Beni “has once again been hit by terrorist acts of diverse origins whose objective is to sabotage the efforts at peace undertaken over the last two years,” he said.

Local activists say more than 500 civilians have been killed near Beni since October 2014, most in overnight raids by rebels carried out with machetes and hatchets.

Local army spokesman Mak Hazukay told Reuters that

the attack was staged in the early evening by rebels from the Allied Democratic Forces (ADF), a Ugandan Islamist militia that has operated in eastern Congo since the 1990s.

The ADF, a secretive organization of only a few hundred fighters, did not comment. Hazukay said the raid was in reprisal for army operations against the ADF, which the government says is responsible for nearly all the attacks near Beni over the last year.

However, a United Nations panel of experts and independent analysts says that other armed groups, including some Congolese soldiers, have been involved in attacks on civilians. It appeared to be the deadliest attack in the area since an assault blamed on the ADF in November 2014 killed some 80 people.

“The goal of the attack is

to incite the population to rise up against us,” Hazukay said. Omar Kavota, the executive director at the Centre of Study for the Promotion of Peace, Democracy and Human Rights that documents violence in North Kivu, said he had received reports of as many as 50 dead.

Eastern Congo is plagued by dozens of armed groups that prey on locals and exploit mineral reserves. Millions died there between 1996 and 2003 as a regional conflict caused hunger and disease. Analysts say insufficient intelligence, coordination and resources have rendered the Congolese army and the country’s U.N. peacekeeping force ineffective against the small ADF force, raising tensions in the region.

On Sunday, dozens took to the streets in Beni, erecting barricades in protest against the army’s inability to deal with the attacks, witnesses said.

40

T H I S D AY •TUESDAY, AUGUST 16, 2016

BUSINESS/MONEYGUIDE

Buhari to Declare Open Meeting of African Central Bank Governors Obinna Chima President Muhammadu Buhari is scheduled to formally declare open the 39th ordinary meeting of the Association of African Central Banks (AACB), to be hosted by the Central Bank of Nigeria (CBN), this Thursday.

With the theme: “Unwinding Unconventional Monetary Policies: Implications for Monetary Policy and Financial Stability in Africa” the meeting is expected to discuss avenues through which African Central Banks can unwind the impact of unconventional policies so that monetary policy can return to its core function of stabilising short term prices.

A statement further disclosed that the four sub-themes of the

meeting “will address various strands of the broader picture by looking at the implications of unwinding/versus not doing so, likely impacts that may follow the unwinding and how they can be mitigated, implications on financial stability and the role of fiscal policy in closing any gaps opened up in the process.”

Hosts of international speakers from the academia, central banking and government circles are expected to share both theoretical and practical experience with the Assembly.

The AACB Assembly of Governors Meeting of Friday, August 19, 2016, is to be preceded by meetings of the AACB Technical Committee and the AACB Bureau billed for Monday, 15 and Wednesday

17 August 2016, respectively; as well as the AACB symposium to be graced by President Buhari.

Expected to be guests of CBN Governor, Mr. Godwin Emefiele, who is also the Vice Chairman of the group, is the AACB Chairman and the Governor of the Central Bank of Central African States (Banque des Etats de l’Afrique Centrale – BEAC), Mr. Lucas Abaga Ncama and his colleagues from across the five sub-regions based on the African Union regional classification.

The Association of African Central Banks was formed on May 25, 1963 at the summit of African Heads of States and Governments held in Addis Ababa, Ethiopia.

Fidelity Bank Gets e-Commerce Platform Licence The Central Bank of Nigeria (CBN) has granted Fidelity Bank Plc final licence to operate electronic commerce services in Nigeria.

With this development, the bank stated that it is positioned to empower micro, small, and medium enterprises (MSMEs) in line with its strategic business objectives, through the provision of an advanced electronic commerce platform.

Christened ‘The Fidelity GreenMall,’ the bank in a statement described the platform as an online marketplace with fully integrated e-commerce capabilities for online payments, delivery logistics, advertising, and business networking opportunities, amongst others.

Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nnamdi Okonkwo said: “We have always seen access to markets as critical success factor in our quest to deepen our MSME service offering.

“With this approval and given

the rapid increase in internet penetration, we see an exciting opportunity to further open up new markets for MSMEs using technology.”

According to him, the central bank’s decision to grant Fidelity full licence to rollout electronic commerce services was driven specifically by the bank’s unique approach to financial inclusion.

The Fidelity boss noted that many MSMEs lack requisite expertise and capacity to manage an online store thereby making it difficult for them to make sales.

Okonkwo, however acknowledged the various constraints that hamper growth of MSMEs such as concerns about their funding, poor record keeping, lack of requisite technology tools and epileptic power supply in the country.

He however advised small businesses to take advantage of the online platform to boost their revenues and income by trading on local and international arena.

“We want to raise the level

of competitiveness of Nigerian MSMEs in a global market,” he said.

Okonkwo pointed out that e-commerce had gained recognition in national and international trade, disclosing that the Bank plans to strengthen the level of participation of Nigerian SMEs in global e-commerce sales.

According to international statistics portal (Statista.com), the retail e-commerce sales worldwide amounted to $1.67 trillion in 2015.

With the projected value of ecommerce in Nigeria expected to hit $13 billion by 2018, according to the CBN, the Fidelity helmsman pointed out that the online platform offers ample opportunity for perceptive businesses to explore and tap into in order to garner more market share.

He noted that the online platform fosters linkages to multilateral agencies and organisations to enable MSMEs explore export markets or franchising opportunities.

Heritage Bank Harps on Financial Literacy As part of efforts to promote financial literacy, Heritage Bank Plc recently took the opportunity of the current holiday for students to implement one of its financial literacy initiatives by conducting a workshop for children.

The Financial Literacy Holiday Workshop, titled, “Edutainment Resource for Children and Young Persons,” engaged children between the ages of 8 and 11 recently.

The highlights of the workshop, which marked the maiden edition included financial literacy coaching presentation skills, creative writing, practical sessions, movie outing and other exciting treats.

Addressing the children in Lagos, the Executive Director, Abuja and North Directorate, Corporate Banking of the bank, Ola Olabinjo, explained that the goal of the programme was to secure the future and empower

the Nigerian child and youth to make informed decisions about finances and wealth creation so they can take action to improve their present and long-term financial well-being.

He, however, stressed that financial education is a key success indicator for socio-economic development, adding that the bank believes in empowering the youth with requisite skills to make solid financial decisions in adult years.

FCMB SupportsVisually Impaired First City Monument Bank (FCMB) Limited has donated 15 Braille machines to the Federal Nigeria Society for the Blind (FNSB) at its Vocational Training Centre (VCT) located at Oshodi, Lagos state. The Braille machines (comparable to a typewriter) were designed to aid the blind in reading and writing, with a view to assisting them get sound education.

The donation of the machines, according to a statement was part of the bank’s Corporate Social Responsibility (CSR) initiatives, which focus on poverty alleviation, economic empowerment

and environmental sustainability.

The gesture, it further explained, was aimed at effectively supporting the efforts of the FNSB towards enhancing the standard of teaching, as well as learning of the blind, who are students of the VCT. The centre was established 60 years ago and so far, over 2,000 visually impaired men and women have benefitted from the various training programmes at the centre.

Speaking at the presentation ceremony last Friday, in Lagos, the Group Head, Corporate Affairs of FCMB, Mr. Diran Olojo, said that the bank recognises the

importance of every segment of the society.

He added: “As a corporate organisation, we believe that it is necessary to constantly extend the hand of fellowship, support and love to the physically challenged and other less privileged groups through charity programmes like this.

“We will continue to support initiatives and programmes that empower people to fulfil their aspirations. We are committed to helping a wide spectrum of our stakeholders to ensure the emergence of a sustainably progressive society.”

President Buhari

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

MARCH 2016 Broad Money (M2)

20,470,436.00

-- Narrow Money (M1)

9,040,817.68

---- Currency Outside Banks

1,441,365.03

---- Demand Deposits

7,599,452.65

-- Quasi Money

11,429,618.32

Net Foreign Assets (NFA)

5,551,714.27

Net Domestic Assets(NDA)

14,918,721.73 22,664,815.74

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

3,782,578.01

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

4,991,246.39

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

-1,208,668.38

---- Credit to Private Sector (CPS)

18,882,237.7

--Other Assets Net

-7,746,094.02

Reserve Money (Base Money)

5,758,634.07

--Currency in Circulation

1,811,090.48

--Banks Reserves

3,383,756.72 • Source - CBN

MANAGED FUNDS Initial Price (N) Stanbic Balanced Fund

Buying Price(N)

Selling Price

1,660.29

1,685.29

Stanbic IBTC NEF

1,000.00

11,002.32

11,326.67.11

Stanbic SIBond

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

13.1030 (Yield % ) • Monetary Policy Rate - 14%

OPEC DAILY BASKET PRICE AS AT THURSDAY 9, AUGUST 2016 The price of OPEC basket of fourteen crudes stood at $40.62 a barrel on Thursday, compared with $40.57 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

SOURCE: OPEC headquarters, Vienna

41 51

TT H AUGUST15, 16,2016 2016 H II S SD D AY AY •• TUESDAY, MONDAY, AUGUST

Nigeria’s top 50 stocks based on market fundamentals

8-Aug-16

5-Aug-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

Table 1 Market Statistics Mkt Indicators

Open 5-Aug-16

NSE All Share Index NSE Market Cap (N'Trillion)

27,425.86 9.42

27,394.98 9.41

-0.11 -0.11

113.55 8.84

113.01 8.80

-0.48 -0.48

01 Dangote Cement Plc

180.00

180.00

0.00%

3,067,291,332,900.00

9.56

19.14

5.76

4.44%

4.51

02 Nigerian Breweries Plc

130.00

133.03

-2.28%

1,030,783,115,440.00

4.50

30.03

3.57

2.71%

6.48

03 Guaranty Trust Bank Plc

23.95

23.11

3.63%

704,876,742,414.80

3.38

7.07

2.36

7.66%

1.57

820.00

820.00

0.00%

649,978,126,640.00

19.41

42.25

3.92

3.54%

18.48

05 Zenith Bank Plc

16.01

16.03

-0.12%

502,657,865,513.86

3.33

4.91

1.23

11.23%

0.81

06 Lafarge Africa Plc

51.50

51.15

0.68%

234,577,443,215.00

-6.71

-7.69

1.06

5.87%

1.66

166.82

166.82

0.00%

217,279,897,602.46

4.22

39.53

1.47

2.07%

5.07

11.54

11.82

-2.37%

211,753,821,021.10

0.23

53.54

0.42

5.25%

0.36

4.55

4.51

0.89%

165,071,844,765.10

1.65

2.80

0.53

13.30%

0.47

10 Presco Plc

38.85

38.85

0.00%

154,253,033,198.25

0.86

44.96

2.18

3.35%

3.59

11 Guinness Nig Plc

95.00

95.00

0.00%

143,059,377,860.00

3.70

25.69

1.27

0.00%

3.22

250.00

242.60

3.05%

138,327,578,250.00 -14.43

-17.70

1.51

6.56%

0.36

Table 4 Top 5 Losers Stock

04 Nestle Nigeria Plc

07 Forte Oil Plc. 08 Ecobank Transnational Incorporated 09 United Bank for Africa Plc

12 Seplat Petroleum Dev. Co. Ltd 13 Stanbic IBTC Holdings Plc

13.30

13.90

-4.32%

133,000,000,000.00

2.04

6.78

1.17

0.72%

1.24

14 Unilever Nigeria Plc

35.00

35.00

0.00%

132,415,368,750.00

0.46

75.69

2.17

0.14%

14.87

15 Access Bank Plc

5.60

5.48

2.19%

128,144,345,884.80

2.48

2.26

0.48

10.04%

0.41

16 FBN Holdings Plc

3.29

3.30

-0.30%

118,095,513,285.68

0.30

10.92

0.24

4.55%

0.19

17 Dangote Sugar Refinery Plc

6.98

6.65

4.96%

83,760,000,000.00

1.05

6.33

0.66

7.52%

1.34

18 Total Nigeria Plc

229.95

242.02

-4.99%

78,073,046,418.15

31.13

7.15

0.31

5.78%

3.89

19 7-Up Bottling Comp. Plc

119.50

120.20

-0.58%

76,550,548,378.50

11.12

11.36

1.04

1.83%

3.21

5.70

5.88

-3.06%

68,597,327,695.80

-3.46

-1.60

0.36

12.76%

0.51

178.60

178.60

0.00%

64,402,313,793.20

17.69

9.62

0.74

4.03%

3.75

22 Julius Berger Nig. Plc

48.39

48.39

0.00%

63,874,800,000.00

0.24 199.88

0.62

3.10%

2.85

23 International Breweries Plc

19.00

19.00

0.00%

62,590,736,320.00

0.17 105.36

2.43

1.32%

5.07

24 Flour Mills Nig. Plc

20.00

21.98

-9.01%

52,484,743,740.00

6.81

2.94

0.14

9.10%

0.58

1.24

1.24

0.00%

48,014,036,807.00

-0.37

-3.22

1.03

0.00%

0.63

20.00

20.00

0.00%

38,417,287,740.00

2.44

8.20

0.53

5.00%

0.52

1.28

1.28

0.00%

36,851,735,201.28

0.31

4.15

0.35

7.03%

0.44

28 Okomu Oil Palm Plc

35.00

35.00

0.00%

33,386,850,000.00

4.60

7.62

2.72

0.29%

2.15

29 Diamond Bank Plc

1.37

1.37

0.00%

31,729,732,886.16

0.11

13.68

0.17

0.00%

0.14

30 Fidelity Bank Plc

1.05

1.05

0.00%

30,423,536,874.15

0.39

2.77

0.22

15.24%

0.17

31 Wema Bank Plc

0.70

0.70

0.00%

27,641,861,249.10

0.06

11.93

0.61

0.00%

0.57

32 FCMB Group Plc

1.34

1.27

5.51%

26,535,632,410.36

0.61

2.09

0.16

7.87%

0.14

33 Cadbury Nigeria Plc

13.90

13.90

0.00%

26,107,008,356.00

3.21

4.33

0.78

9.35%

2.52

34 Cap Plc

37.00

37.00

0.00%

25,900,000,000.00

2.49

14.89

3.67

3.11%

17.04

35 Custodian And Allied Insurance Plc

3.80

3.99

-4.76%

22,351,083,941.00

0.76

5.25

0.70

3.51%

0.84

36 Glaxo Smithkline Consumer Nig. Plc

18.50

18.50

0.00%

22,123,715,028.00

-2.54

-7.28

0.76

1.62%

2.42

37 Mansard Insurance Plc

2.10

2.09

0.48%

22,050,000,000.00

0.27

7.55

1.12

2.39%

1.04

38 National Salt Co. Nig. Plc

8.06

8.06

0.00%

21,354,473,326.68

0.89

9.03

1.17

6.82%

3.09

39 PZ Cussons Nigeria Plc

19.55

19.55

0.00%

19,550,000,000.00

4.14

4.72

1.47

0.51%

0.59

40 Honeywell Flour Mill Plc

1.52

1.59

-4.40%

12,053,900,440.16

-0.40

-3.76

0.25

10.06%

0.77

41 Unity Bank Plc

0.99

0.99

0.00%

11,572,444,562.58

0.54

1.82

0.18

0.00%

0.13

42 Continental Reinsurance Plc

1.02

1.00

2.00%

10,580,199,198.24

0.33

2.95

0.49

12.00%

0.54

43 Skye Bank Plc

0.68

0.70

-2.86%

9,438,604,958.80

-2.93

-0.24

0.06

42.86%

0.09

44 Cement Co. Of North.Nig. Plc

6.60

6.65

-0.75%

8,294,073,255.60

0.96

6.61

0.61

1.50%

0.82

45 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,124.00

0.11

5.16

0.94

6.00%

0.43

46 Nigerian Aviation Handling Company Plc

4.00

4.00

0.00%

6,496,875,000.00

0.15

25.94

0.81

5.00%

1.05

47 UACN Property Development Co. Limited

3.72

3.72

0.00%

6,393,749,981.40

-0.05

-68.09

1.81

18.82%

0.18

48 Resort Savings & Loans Plc

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

49 AIICO Insurance Plc

0.71

0.68

4.41%

4,920,445,180.80

0.28

2.42

0.14

7.35%

0.49

50 Fidson Healthcare Plc

1.95

1.95

0.00%

2,925,000,000.00

0.31

6.36

0.43

2.56%

0.46

20 Oando Plc 21 Mobil Oil Nig Plc

25 Transnational Corporation Of Nigeria Plc 26 U A C N Plc 27 Sterling Bank Plc

TOTAL

8,799,367,404,810.01

TOTAL MARKET CAP

9,408,790,941,936.79

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

93.52%

Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Close 8-Aug-16

Change %

Table 3 Top 5 Gainers Stock

Open 5-Aug-16

FCMB Group Plc Dangote Sugar Refinery Plc AIICO Insurance Plc Guaranty Trust Bank Plc Seplat Petroleum Dev. Co. Ltd

1.27 6.65 0.68 23.11 242.60

Open 5-Aug-16

Flour Mills Nig. Plc Total Nigeria Plc Custodian And Allied Insurance Plc Honeywell Flour Mill Plc Stanbic IBTC Holdings Plc

Close Change 8-Aug-16 % 1.34 6.98 0.71 23.95 250.00

5.51 4.96 4.41 3.63 3.05

Close Change 8-Aug-16 %

21.98 242.02 3.99

20.00 229.95 3.80

-9.01 -4.99 -4.76

1.59 13.90

1.52 13.30

-4.40 -4.32

Market begins week on a bearish note as Index drops 0.11% Market pulse on the Nigerian Stock Exchange (NSE) today – Monday, August 8, 2016 closed on a negative note due to intense sell presuure. This was further highlighted by negative performances from the NSE sub-sectors: Oil & Gas and Consumer Goods (Save Banking and Insurance).

Trading activities decreased in volume as 118.37 million shares worth N1.27 billion in 2,899 deals exchanged hands today. This is a decrease from the 120.84 million shares worth N1.27 billion in 3,307 deals exchanged on Friday. Topping in volume terms was Access Bank Plc, Fidelity Bank Plc and FBNH Plc while 7UP Bottling Company Plc and Zenith Bank Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed negative with a 0.11% (-30.88) decrease to close at 27,394.98 from 27,425.86 the previous trading day. Market Capitalization depreciated in tandem to N9.41 trillion from N9.42 trillion of prior trading day.

Similarly, the Thisday BGL 50 Index also followed suit with a decrease of 0.48% to close at 113.01 from 113.55 recorded at the end of the previous trading day, while its market capitalization stood at N8.80 trillion from N8.84 trillion of the previous trading day.

A total number of 15 stocks gained on the bourse today while 18 stocks declined, 59 leaving stocks unchanged. FCMB Group Plc emerged the day’s toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 5.51% to close at N1.34 per share. It was followed by Dangote Sugar Refinery Plc with a gain of 4.96% to close at N6.98 per share. Others on the gainers list include: AIICO Insurance Plc, Guaranty Trust Bank Plc and Seplat Petroleum Dev. Co. Ltd while on the decliners’ list; Flour Mills Nig. Plc led with a loss of 9.01% to close at N20.00 per share. It was followed by Total Nigeria Plc with a loss of 4.99% to close at N229.95 per share. Others on the losers list include: Custodian And Allied Insurance Plc, Honeywell Flour Mill Plc and Stanbic IBTC Holdings Plc. REQUIRED DISCLOSURE This report has been prepared by BGL Plc. BGL Plc does and seeks to do business with companies covered in its research reports. As a result, the firm may have a conflict of interest that could affect the objectivity of this report. Investors should use this report as one of many other factors in making their investment decisions.

For more details go to www.thisdaylive.com

T H I S D AY •TUESDAY, AUGUST 16, 2016

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MARKET NEWS

NSE All- Index Rises 0.26% as Highly Capitalised Stocks Lift Market Goddy Egene and Nosa Alekhuogie Trading at the Nigerian equities market resumed on a bullish note yesterday as gains by few bellwether stocks lifted the market by 0.26 per cent.

Although the market recorded more price losers than gainers, appreciation in the prices of Dangote Cement Plc, Nigerian

Breweries Plc, Nestle Nigeria Plc and Lafarge Africa Plc made the market to close on a positive note.

The Nigerian Stock Exchange (NSE) All-Share Index rose by 0.26 per cent to be at 27,316.52, while market capitalisation closed higher at N9.38 trillion compared with a fall of 0.12 per cent last Friday.

Nestle Nigeria led the gainers’ table with N5.02 to close

at N825.02 per share, trailed

by Dangote Cement with N2.99 to be at N181.00 per share. Nigerian Breweries Plc garnered N2.42, just as Unilever Nigeria Plc and Lafarge Africa Plc chalked up N1.75 and N1.72 respectively. Total Nigeria Plc gained N1.00, while Union Bank of Nigeria Plc, Cadbury Nigeria Plc, Skye Bank Plc and WAPIC Insurance Plc added N0.15, N0.10, N0.03 and N0.02

in that order.

Conversely, Forte Oil Plc led other 22 price losers with N8.26 to close at N161.30 per share.

CAP Plc trailed with a loss of N1.40 to close at N27.30 per share among others.

The NSE Industrial Goods Index led with the sectoral gainers with 1.9 per cent boosted by the 3.2 per cent rise in Lafarge Cement Plc and 1.7 per cent appreciation in Dangote Cement

This was followed by the NSE Consumer Goods Index, which rose 0.8 per cent on account of gains in Unilever (+5.0 per cent) and Nigerian Breweries Plc (+1.9 per cent).

Conversely, the NSE Oil & Gas Index closed negative, shedding 2.2 per cent on the back off sell-offs in Conoil Plc (-5.0 per cent) and Forte Oil Plc (-4.87 per cent). Similarly, the NSE Banking Index declined by 1.6

per cent as a result of losses by United Bank for Africa Plc (-5.0 per cent) and ETI (-4.9 per cent).

However, analysts at Cordros Capital Limited said despite the yesterday’s positive close, they expect bearish sentiments to resurface in today’s session “as activities (sectoral performance and negative market breadth) speak to less-than-significant improvement in investor appetite.”

DAILY STOCK MARKET REPORT T H E

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TUESDAY AUGUST 16, 2016 • T H I S D AY

NEWSXTRA

Osinbajo: Farmers to Secure Credit at Single Digit from Bank of Agriculture Ogbeh: FG to end tales of hunger James Emejo and Chukwuemeka Maduagwuna in Abuja Vice President Yemi Osinbajo yesterday said efforts were being made to ensure that farmers secure financing from the Bank of Agriculture (BoA) at single digit interest rate in a determined move to boost agriculture as part of government’s diversification strategy.

He said the Federal Ministry of Finance had practically concluded plans to recapitalise and re-engineer the BoA adding that the bank should be ready to give single digit rates by the end of the quarter.

He said with the current double digit interest rate and reluctance by commercial banks to lend to agriculture, there was need to develop alternative model for financing the sector in the short term.

He said the Central Bank of Nigeria’s (CBN) Anchor Borrower programme has been useful and had recorded huge successes in local rice and wheat production through the provision of loans at single digit.

Speaking yesterday in Abuja at the unveiling of the “Green Alternative: the Agriculture Promotion Policy 2016-2020” which is a four-year blueprint on growing the sector, he said repositioning agriculture was critical for economic transformation.

He said the sector would not only be revived to achieve food security but also have the capacity to produce and export

to earn foreign exchange.

He said the inability of past administrations to adhere to policy direction and the unbridled importation of items which ought to be produced locally, coupled with high interest loans to farmers were some of the major drawbacks to the development of the sector.

He said the current administration inherited a near colapse economy and had to take far reaching decisions to reposition it.

According to him, one of the most critical component of the plan was to position agriculture as arrow-head of its recovery efforts.

“There’s no question at all that if we get agriculture right, we will get our economy right,” he said.

He added that the roadmap identified the inability to meet domestic requirements which is more of productivity challenge as well as inability to export at levels required or market success adding that the Green Alternatives will solve the challenges.

He said: “You cannot have a policy of encouraging local production of food and on the other hand, have a high tarrif on imported agricultural equipment. There’s no way that we can encourage local production when we allow unbridled importation of the same thing that we are trying to produce.

“There’s no way we can do the scale of agricultural production both for domestic consumption and export without ensuring local improved seedling

Obasanjo Reflects on 1976 Coup, Says Everyone Thought It will End Nigeria Sheriff Balogun in Abeokuta Former President, Chief Olusegun Obasanjo, yesterday reflected on the 1976 coup, saying that Nigerians thought it would end the nation called Nigeria.

Obasanjo explained that the misconception stemmed from the fact that most of those involved in the coup were Christians and for killing the Head of State, who was a Muslim, were seen as a bad signal for Nigeria.

The former president who was a host in the cast and crew of the yet-to-be released film, ‘1976’ (‘76) at the Olusegun Obasanjo Presidential Library, Abeokuta, said there were misconceptions about the coup, which upturned the political situation at the that time.

According to Obasanjo, the killing of a Muslim on a Friday by a gang thought to be Christians, particularly when we remembered the first coup, which upturned the political situation gave a bad signal. Where what will amount to; where will it lead us to and where will it lead us out? These were what Nigerians had in mind.

While describing the film which abridged parts were shown as “a mixture of sweet and sorrow”, Obasanjo commended the team for the production.

He said: “It will make us to remind ourselves not to go back to the dark days, which put us in go-no-go situation.”

He added: “We can have more of this, as there are more national issues that can be portrayed. We are capable of the best and that is what this film has shown,” he said.

However, the Executive Producer of the film, Prince Tonye Princewill, said the cast and crew of ‘1976’ were on tour of the country to seek support and endorsement for the film, billed to premier in November.

“The youth of today need to have a sense of the past, hence the resolve to have the film 1976, which is simply called ‘76”, he said.

Princewill said the visit to Obasanjo was important, “considering his position at that time in the country.

We deemed it fit to come and show him the film and curry his endorsement, which as you can see we have got,” he said.

New agric policy launched

development alongside those that we import. And of course, encouraging the works of the agents of the ministries of science and technology who have been making great breakthroughs in local development of agricultural equipment.”

Osinbajo said as part of the 500,000 teachers that federal government plans to recruit, about 100,000 will be trained as extension workers for the farms.

He commended the Minister of Agriculture and Rural Development, Mr. Audu Ogbeh, for what he described as his unbridled advocacy for a new policy on agriculture and for also spearheading the policy development within a short period.

Nevertheless, Ogbeh thanked both President Buhari and Osinbajo for their support in ensuring that a blueprint on agriculture was developed.

The minister said the new

document was not entirely new as it was built upon the Agricultural Transformational Agenda (ATA) of the previous administration.

He maintained that the present administration had no intentions to jettison good ideas from the past regime noting that policy summersaults were often costlier than new initiatives.

He said adjustment would be made to past administration’s policies where necessary.

He expressed confidence that with the recent interventions, “It won’t be long before we begin to cruise to reasonable altitude.”

He said government would work with state governments to put over 200 dams located across the country into use.

He added that stakeholders would now be expected to use only duly certified fertilizers by government as well as adhere to advisory of soil conditions

for bumper yields.

The federal government has already invested massively in soil mapping/testing aimed at increasing crop yields.

He said adequate security arrangement was being put in place to shield local and foreign investors into agriculture from the snares of armed robbery and kidnapping.

On the new policy document, Ogbeh said there had been no alternative to oil and gas in the past 30 years while agriculture had totally been relegated, a situation which according to him led to annual food import bills at a historic $22 billion.

He said given Nigeria’s population projection, the government cannot continue to subsidise feeding, adding that “We have to feed or perish.”

He said tales of widespread hunger will be brought to an end as government expects bumper harvest this year, bouyed by

innovations in fertilizer utilisation and education of farmers on new ways of doing things.

Essentially, the new 129-page policy document produced by the ministry of agriculture after extensive consultations with stakeholders, among other things, targets three key pillars including productivity enhancements, crowding in private sector investment and institutional strengthening/ realignment.

The key objectives is to grow the agricultural sector to between six to and 12 per cent annually; doubling agricultural household incomes in 6 to 12 years and integrating agricultural commodity value chains into the broader supply chain.

Other immediate targets are to drive job growth and wealth creation as well as ensuring enhanced capacity for foreign exchange earnings.

BACK TO LAND

Vice PresidentYemi Osinbajo (fifth left), launching the ‘Green Alternative: Agriculture Promotion Policy 2016-2020’ agricultural sector road-map in Abuja...yesterday

US Offers FBI’s Technical Assistance to Support Nigeria in War against Terrorism The United States Government has said it is bringing in officials from its Federal Bureau of Investigation (FBI) and other security experts to provide technical assistance to the Nigerian government to deal with terrorism.

Mr. Alan Tousignant, acting Deputy Chief of Mission, US Embassy, disclosed this yesterday in Abuja when he led a security delegation on a courtesy visit to the Minister of Interior, Lt.-Gen. Abdulrahman Dambazau (rtd).

The envoy said the delegation which comprised a crack team of the US Security Governance Initiative (SGI) was in the country as a follow-up to its earlier visit in January.

The News Agency of Nigeria reported that the SGI is an initiative of the US government that offers enhanced security technical assistance to six African countries, including

Nigeria.

Tousignant stressed that they were in Nigeria at the request of the Nigerian government to provide a holistic security technical assistance and not to donate any equipment.

He explained that the federal government identified three major areas of partnership to include enhancing the Ministry of Interior’s emergency response coordination, Ministry of Defence’s procurement procedure and the civilian security planning for the North-east.

He said that the week-long interaction between the SGI team and the Nigerian security agencies would fashion out a robust road map to ensure better efficiency, transparency and justice in Nigeria’s security architecture.

Earlier, Ambassador Stephen Nolan, Team leader, SGI said both countries were working to

finalise and implement a Joint Country Action Plan (JCAP) which was a document that outlined a roadmap for a successful partnership.

He said that the JCAP emphasised partnership and finding Nigerian solution to its security challenges not about what the US was doing for Nigeria.

Nolan, however, assured that the forthcoming elections in the US and the change of government in January 2017 would not affect the project as they had been working hard to ensure its sustenance.

“I want to assure you that we have been working for the continuity and sustainability of this project, even after the Barack Obama administration in January, 2017,’’ he said.

Dambazau, in his remarks, thanked the delegation for the visit and expressed optimism that the partnership would

help to re-position the security architecture of the country.

He said that the partnership would involve all security agencies and not just those of the Ministry of Interior so as to fashion out a holistic security road map to deal with terrorism and other crimes.

The minister said that the meeting was in tandem with President Muhammadu Buhari’s agenda to address security, corruption and the economy of the country in line with international best practice.

He charged officials from all security agencies in the country that were part of the meeting to show commitment and dedication to the task ahead.

Officials from the Nigeria Police Force, Army, Air Force, Navy, Immigration, Prisons, civil defence and fire service were all part of the strategic meeting.

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NEWSXTRA

Udoma Identifies Causes of Poor Planning, Budget Implementation Ndubuisi Francis in Abuja

Failure to link policies, plans, Medium Term Sector Strategy (MTSS) and annual budgets is the most critical factor responsible for poor planning and budget implementation in Nigeria and many other developing countries of the world, the Minister of Budget

and poor National Planning, Udoma Udo Udoma, said yesterday.

Udoma noted that countries like Nigeria where the planning process is fragmented and not adequately aligned with the annual budgeting process experience difficulty in implementing clear and consistent national policies.

Ohanaeze Ndigbo Canvasses Support for Buhari Administration Jessica Odemwingie in Abuja A youth group, Ohanaeze Ndigbo Youth, has called on Nigerians all over the world, irrespective of their ethnicity, religion and political affiliation, to support the present administration to build a stronger, indivisible nation with sincerity of purpose and ideology.

This was made known to journalists yesterday at a world press conference in Abuja.

The President of the Ohanaeze Ndigbo Youth, Anya S. Anya, said: “For the purpose of sincerity and good governance, we are totally in support of President Buhari’s anti-corruption policies because no society can genuinely develop or build its citizens with massive corruption witnessed in the past.

“No government can massively bring forth development without the support of its citizens creatively, we are calling and motivating other Nigerian students/youths to stand against all the evil activities of many hoodlums, miscreants, anti-progressive individuals or groups that are sowing seeds of discords amongst Nigerians.”

He further said the recent calls in some quarters for the prosecution of General Abdulrahman Dambazzau (rtd) who has not be found guilty inthe ongoing arms scandal, is unnecessary and a diversion from the current challenges in the country.

Anya stressed: “In the criminal justice system all over the world, there are indictments based on preliminary investigations supported with genuine evidence before persons are brought to face trial.

“All over the world, criminal trials are not supposed to be politicised or initiated on the print, electronic and social media neither are they conjured up by the mere imaginations of persons who may have ulterior motives that are not people-oriented.”

“The call by some mischievous persons against Dambazzau is enmeshed in dirty politics and aimed to tarnish the image of a man who has maintained credible records in his military career.”

Anya further said that Nigeria’s bone marrow has been deeply eaten by corrupt agents and needs to be effectively restored by the Buhari’s administration.

Buhari Asks Guinea Bissau Leaders to Resolve Differences Tobi Soniyi in Abuja President Muhammadu Buhari has appealed to political leaders in Guinea Bissau to embrace unity and avoid any act that could plunge the nation into further crisis.

A statement issued by the Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu, said the president spoke yesterday in Abuja at the State House while receiving Mr. Modibo Toure, the Special Representative of the UN Secretary-General on Guinea Bissau.

Buhari decried the lingering political crisis in the West African country.

“They must accept responsibility for leadership to stabilise their own country,” the president warned, adding that it was the country’s political leaders, not outsiders that could

effectively resolve the political crisis in the country.

Buhari told the visiting envoy that Nigeria would welcome increased support from ECOWAS and the United Nations to stabilise the country and prevent breakdown of law and order.

The president said Nigeria had a responsibility to the region and the rest of Africa and assured that “we will not shirk on our responsibility, in spite of the hardship confronting us.”

The UN representative, Toure, had requested Nigeria to use its clout in the regional bloc, ECOWAS, to break the deadlock in the country.

He warned that Guinea Bissau faced a very grim future if the country continued without a functioning government.

The minister, who spoke in Abuja at a sensitisation workshop on MTSS 2017-2019 organised by his ministry for permanent secretaries, heads of departments and other officials of ministries, departments and agencies (MDAs), said this had been the nation’s experience over the years.

“In Nigeria, we have not done too well in ensuring that budget outcomes achieve planned targets. Most MDAs have also not developed their MTSS and adopted it as a basis for budget formulation for several years.

This informed government’s decision to reintroduce MTSS, the first of which will cover fiscal year 2017-2019,’’ he said.

According to Udoma, this is expected to compliment other strategies of government in fast-tracking the development process in the country.

“As you are aware, MTSS links sector/MDA strategic

objectives to over-arching national development goals and it is a key component of the MTEF (Medium Term Expenditure Framework).

“The MTSS will compliment the implementation of zerobased budgeting (ZBB) system by ensuring that projects and programmes that are admitted into the annual budgets are in line with mandates of MDAs and clearly linked to government policy thrusts and strategic objectives of improving service delivery to the Nigerian people,’’ the minister said.

Udoma disclosed that the current MTSS exercise would be limited to select critical sectors to support the preparation of the 2017 Budget, adding that there was a plan to roll out the MTSS process to all sectors/MDAs from 2017.

“This is aimed at guiding MDAs for more efficient and effective investment of

national resources in critical sectors of the economy, in line with the Change Agenda,’’ Udoma stated.

According to him, for a start, 14 ministries, particularly large capital spending ones, are to be assisted to develop and document their MTSS. He listed them as the Ministries of Transportation; Power, Works and Housing; Interior; Water Resources; Solid Minerals; Health; Agriculture and Rural development; Niger Delta Affairs and Niger Delta Development Commission (NDDC).

Others are Education, Defence, Federal Capital Territory, Environment, Science and Technology, and Communication Technology.

To ensure the development of a credible MTSS, the minister noted that effort should be made to capture both existing and new initiatives that will help in achieving the sector goals,

and national aspirations.

“Distinguished ladies and gentlemen, the MTSS 2017-2019 of these selected ministries/agencies will serve as basis for their 2017 budget proposals. It will also serve as credible input into the development of the 2017-2020 Medium Term Plan,’’ Udoma said.

The minister observed that the theme of the workshop, “Addressing the Approach to Developing the Medium Term Sector Strategies and Plans’’ was not only apt but timely.

The event, he added, was coming at a time when the country is experiencing dwindling revenues occasioned by the declining price of crude oil in the international market, noting that this development had resulted in difficulties in meeting financial obligations by all tiers of government, thus posing serious constraints to national development process.

AN AUDIENCE WITH THE PRESIDENT

L-R: Special Adviser, Political, Mrs. M. Nzengouu; Special Representative of the UN Secretary-General on Guinea-Bissau, Modibo Toure; President Muhammadu Buhari; Minister of State for Foreign Affairs, Hajiya Khadija Bukar Abba Ibrahim; and an official of GuineaBissau, Mr. Richard Freeman, during an audience with the president at the State House in Abuja...yesterday

Sylva, APC Appeal Tribunal’s Judgment on Bayelsa Governorship Election Tobi Soniyi in Abuja The All Progressives Congress (APC) governorship candidate in Bayelsa State, Timipre Sylva, has appealed the July 26, 2016 judgment of the election tribunal which upheld the return of Seriake Dickson as winner of the last governorship election in the state.

His party, APC also filed a separate appeal.

In the appeal filed before the Court of Appeal, Abuja on August 14, 2016 by their lawyer, Sebastine Hon (SAN), they asked the appellate court to set aside the judgment of the tribunal.

They raised 24 grounds of appeal upon which they disagreed with the judgment of the tribunal.

They argued that the threemember tribunal, led by Justice Kazeem Alogba, misled itself, misapplied the law and came to

wrong conclusion in its verdict.

Sylva and APC asked the Court of Appeal to, among others, set aside the judgment and grant his reliefs as contained in his petition or the alternative reliefs, including cancellation of the election and ordering fresh one.

The former governor and his party argued that the tribunal erred in law when it held that the reasons given by the Independent National Electoral Commission (INEC) to cancel the election was within the provision Section 26(1) of the Electoral Act (EA) 2010.

According to them, Section 26(1) of the Electoral Act has no provision for ‘cancellation’ of election, but postponement’ of election.

They argued that the phrase ‘other emergencies’ under Section 26(1) E A was limited to the action of INEC ‘postponing’ an election and not ‘cancelling one that had already taken place.’

Sylva, who noted that his major complaint was that INEC’s Electoral Officer in the state acted unlawfully in cancelling the result of elections already held in Southern Ijaw Local Government on December 6, 2015, the tribunal was wrong to have upheld INEC’s claim that the election was postponed.

He also claimed that the tribunal made contradictory findings when, after finding out that Forms EC8A, containing the polling unit results of election in Southern Ijaw LG, turned around to conclude that no valid election was held in the area on December 6, 2016.

They argued that the judges misdirected themselves in law when they held that the appellant (he) failed to prove and or tender any documents showing that election results had been uploaded on the datbase of INEC before the cancellation

of the election and that such failure not only meant abandonment of pleading, but withholding of evidence, which if tendered, would be fatal to the appellants.

The appellants further faulted the tribunal, arguing that the judges erred in law when, in their haste to dismiss his case in respect of Southern Ijaw LGA, it deliberately refused to judicially evaluate the evidence called by the appellants in proof of their case in that local government area..

They also faulted the tribunal for failing to void Dickson’s election when it found, through credible evidence led, that the combined result of election recorded by both candidates was 48,146 less than the over 120,000 total registered voters in Southern Ijaw Local Government Area.

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NEWSEXTRA

Exit of Foreign Airlines Worries Senate C’ttee, Aviation Minister Summoned

Omololu Ogunmade in Abuja The Senate Committee on Aviation yesterday expressed concern over the constant withdrawal of some foreign airlines from the nation’s airspace and consequently announced its plans to summon the Minister of Aviation, Hadi Sirika, to appear before it and explain the rationale behind this ugly trend.

Making this disclosure in the National Assembly after a meeting of the committee with various aviation agencies, the committee chairman, Adamu Aliero, told journalists that persistent scarcity of aviation fuel which had forced some foreign airlines to shut down operations in Nigeria was embarrassing for a nation which produces crude oil in large quantity.

Budget Scandal: Abdulmumin to Brief Diplomatic Community Damilola Oyedele in Abuja The sacked Chairman of the House of Representatives Committee on Appropriation, Hon. Jibrin Abdulmumin, has disclosed his intentions to brief the British, American, German and French embassies on the allegations of budget ‘padding’ by the Speaker of the House, Yakubu Dogara and three other principal officers.

In a statement yesterday, Andulmumin also disclosed that he had sent a letter to the Presidential Advisory Committee on Anti-corruption requesting for an appointment to make a detail presentation on all the allegations.

“The utterances of Dogara in the last few days like his public pronouncement that padding is not an offense has clearly confirmed my innocence. I have therefore petitioned the Public Complain Commission and National Human Right Commission (NHRC) to enforce and protect my fundamental human right.

Though as Speaker, he has the powers to sack committee chairmen but that must be done with justice, fairness and a huge sense of responsibility,” he said.

The embattled lawmaker accused Dogara of using his office to obstruct investigation into the allegations of fraud.

“I also heard from good authority that a close associate

of his who is Chief Executive of a well known federal government agencies has been approaching members with offer of money to support Dogara,” Abdulmumin alleged.

Meanwhile, the Chief Whip of the House, Hon. Alhassan Ado Doguwa, has described the sustained barrage of accusations against some leaders of the lower chamber by Abdulmumin as an indication that he has lost out in the executive arm of government and in the All Progressives Congress (APC).

Doguwa who is also from Kano State like Abdulmumin, has however pledged to take legal action to seek redress for maligning and defamation of character, by Abdulmumin.

Abdulmumin had accused Doguwa, alongside the Dogara, Deputy Speaker, Yussuff Sulaimon Lasun and Minority Leader, Leo Ogor, of corruption, abuse of office and allocating to themselves the sum of N40billion out of the N100 billion appropriated for the National Assembly.

In a statement issued yesterday, Doguwa said Abdulmumin’s legal strategy to protect himself from possible sanctions in the House, is sheer cowardice and act of escapism, which would fail.

“Our respected judiciary would never fall victim of his misrepresentations and blackmail,” Doguwa said.

Group Seeks Intervention in NAICOM, Union Feud A professional group, Committee of Concerned Finance Professionals, has called on financial regulators to intervene in the crisis between the management of the National Insurance Commission (NAICOM) and its employees under the aegis of Amalgamated Union of Public Corporations, Civil service Technical and Recreational service Employees (AUPCTRE).

The group said the allegation of financial recklessness levelled against some officials, which degenerated into crisis, had not been resolved.

A statement by the Chairman of AUPCTRE, Gabriel Anitekhi and Secretary, Yussuf Gindinrin,

said: “We have learnt that the battle between the executive management of NAICOM and AUPCTRE is no longer smooth, as there is no mutual working cordiality among staff and members of the commission.

“There are further indications that this is unconnected with the failed attempt of the regulators to adhere strictly to the agreement as contained in the Memorandum of Understanding (MoU) signed by the warring factions after the March 22 protest in Abuja.

“Instead, the management through the Director of Administration faulted the agreement in another circular to the union and members of staff.”

Aliero who said the problem could easily be resolved by the federal government without dragging the nation to such an embarrassing state, said it was very ridiculous that an oil producing country could watch both the local and foreign airlines purchase aviation fuel from neighbouring countries.

The senator further said in view of the challenges of funding facing the aviation sector, the National Assembly might be left without option than to amend the constitution to pave the way for convenient repatriation of funds owed by airlines to the coffers of the federal government in naira equivalent.

According to him, if the aviation industry must be productive, there is the ultimate need to unbundle the sector with a view to increasing its revenue profile.

“From what the committee was made to understand, the most major problem faced by foreign airlines is aviation fuel which is a major problem in

Nigeria. In spite of the country being an oil producing one, it is embarrassing that airlines get their products from neighbouring countries.

“As regards repatriation of funds, it is more of a constitutional problem. We will look at ways of fine tuning the constitution so as to make it possible for airlines to remit funds owed government.

“There is also the need to unbundle the aviation sector.

We are of the opinion that if this is done, the operations of the sector will be liberalised an that will go a long way to boosting revenue generated. So, these are the issues, and since these problems exist, we will invite the Aviation Minister so we can find a lasting solution to them,” Aliero said.

Also speaking, a member of the committee, Bala Ibn Na’Allah, said unbundling the aviation sector had become a necessity in view of the challenges faced by the aviation sector, noting that the move would enable relevant agencies

to re-evaluate their policies and consequently chart the way forward for the sector.

“We are all aware where we are. With the economy, and we are aware how much the aviation sector can generate for the country. We must think of unbundling the aviation sector.

We have unreasonably overburdened ourselves. If what we have tried in the past has not worked, is it not time to re-evaluate our policies for the aviation sector? We must change our way of doing things; we have to do so at this point because we have no option - so we can move the industry forward,” he said.

Na’Allah also canvassed the need to liberalise the art of flying under the Nigerian law, saying the bottlenecks in the sector impede the ability of Nigerian pilots to compete with their foreign counterparts for international jobs.

He also alleged that pilots and aeronautical engineers trained in the country are not fit for employment as a result

of non-availability of aircraft to enable them put the knowledge they acquired into practice.

Enumerating the challenges confronting the sector, representative of the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mr. Femi Ogunade, disclosed that foreign airlines were leaving the country in droves.

In the same vein, the Managing Director of Nigerian Airspace Management Agency (NAMA), Mr. Emma Agasi, said airlines operating in Nigeria had been incapacitated from repatriating the stipulated 5 percent charge to federal government’s coffers as a result of non-availability of forex required to do so.

He said despite the preparedness of the affected airlines to make such payments in naira equivalent, they are disallowed by constitutional provisions which provide for such payment in dollars as he appealed to the National Assembly to amend relevant laws to address the trend.

KEEP THE AWARDS COMING

L-R: Wife of the National President, Kwara State Association of Nigeria (KSANG) DC, Mrs. Abisola Adesina; Mr. Abdulraheem Adedoyin, receiving his KSANG DC Lifetime Member Award from the KSANG National President, Mr. Bernard Adesina (second left) assisted by KSANG DC President, Dr. Gboyega Abdulkadir, at the gala/award night of the 25th anniversary of the of KSANG, North American chapter in Maryland, USA ...weekend

23 Prisons Officers Dismissed, 11 Others Suspended Following Jailbreak The Civil Defence, Fire, Immigration and Prisons Services Board (CDFIPB) has at its emergency meeting held last Thursday, approved the dismissal of three senior prisons officers serving in Kuje Medium Security prison and three other senior officers serving in Koton Karfe Prison in Kogi State for their complicity in the escape of prisoners from the respective prisons.

The dismissal letters dated August 12, 2016 were signed by the Secretary to the board, Alhaji A A Ibrahim.

The letter read in part: “CDFIPB considered the allegation of serious misconduct arising from your negligence of duty as levelled against you. The board

thereafter approved your immediate dismissal from the Nigerian Prisons Service in line with the provision of the Public Service Rule 030402 (O) being an action prejudicial to the security of the state.”

Similarly, the ControllerGeneral of Prisons in his capacity has approved the dismissal of seven junior staff serving in Kuje Medium Security prison and 10 other junior staff serving in Koton Karfe prison also implicated in the escape saga.

A statement signed by the Public Relations Officer of the service, Francis Enobore, said the affected officers are to hand over all government property in their possession to their immediate superior and proceed accordingly.

Meanwhile, the officer in charge of Nsukka Prison, Okonkwo Lawrence and 10 others have been suspended over the recent prisoners’ escape from the prison.

The suspension is to allow for detailed and uninterrupted investigation into the circumstances surrounding the incident in order to facilitate appropriate action by the authority.

In the wake of incessant escape of prisoners from some prisons in the country Ahmed on August 2, 2016 convened an emergency meeting of Command Officers and 241 officers in charge prisons, country to reassess security measures for safe keeping of prisoners.

Although a number of

escapees have been recaptured, efforts are still being made to ensure that all the fugitives are apprehended and returned to prison custody.

The Controller General assured all officers and men of the service of his readiness to support and encourage hard work and dedication to duty.

He frowned at acts of negligence capable of embarrassing the service and the nation at large.

While appreciating the collaboration of security agencies, vigilante groups and members of the public for their support, the Controller General further assured that all necessary measures are being put in place to guarantee maximum security of persons in prison custody.

46

TUESDAY, august 16, 2016 • T H I S D AY

TUESDAYSPORTS

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

Don’t Come to Our Camp, U-23 Team Warns Dalung Ready to die for Nigeria against Germany

Some keys players of U-23 Team aiming to go pass Germany tomorrow in one of the semi finals of the men’s football event of the Rio2016 have begged not to be distracted by officials of Team Nigeria.

Specifically, they insisted that they don’t want the Sports Minister, Solomon Dalung, and his delegation anywhere near their dressing room before and during the match to avoid unnecessary distractions.

“We are set for the semi final clash with Germany.

We have perfected our game plan to qualify for the final and win the gold medal for

Nigeria like our 1996 Atlanta Olympic Games colleagues,” hinted one of the top players on Monday night.

Despite the apology by Dalung for the shabby manner his ministry treated the team during their training tour of Atlanta, USA, the player insisted that it was difficult for them to forget the scandalous scenario before achieving the feat of reaching the semi final.

Under-23 Team players and officials were stranded for three days before being airlifted by American Delta Airline to Manaus, venue of their first group game against Japan.

Sports Minister, Solomon Dalung during a visit to the athletes at the Games village in Rio

Team Nigeria Athletes Cry Foul over Poor We’re Going for Another Condition at the Games KO, Says Konyegwachie As Team Nigeria continues its search for the first medal in the Rio Olympics, coach Anthony Konyegwachie has promised that his ward, Efe Ajagba would deliver the first medal to Nigeria. The lone Nigerian entrant in the boxing event of the Rio Olympics, climbs the squared ropes today against another crack Kazakhstan’s boxer, bronze medallist at the 2012 London Olympics, Ivan Fyodorovich Dychko. ‘’We’r going to deliver the first medal to Team Nigeria here in Rio. Ajagba is going to hit another knockout tomorrow(today) to move into the semi final. Tell them that I said so’’, observed Konyegwachie who is younger brother of Péter who won a silver medall at Los Angeles Olympics..

‘’I know the stuff Ajagba is made of. He has been training and he is in a killer mood.

Nobody will stop him’’, the coach insisted.

But Ajagba’s opponent who also earned a knockout to get to the quarter final possesses an intimidating records having won a bronze medal at the London 2012 Olympics. And before coming for the Rio Games, the boxer also spent two weeks training with World Champion, Vladimir Klitschko and his team.

He is 2.02m tall and also rated as number two in the +91 kg class. ‘’There is nothing to be afraid of. Ajagba is also a tough nut to crack. Mark my words that Ajagba will deliver another knockout and get Team Nigeria its first medal’’, Konyegwachie emphasised.

Pressure on NOC in Rio

Several Nigerians who have no business at the Games in Rio have flocked here all in the name of coming for the Olympics.

It was learnt that most of these officials who have no accreditations nor tickets to match venues are putting pressure on the Nigeria Olympic Committee (NOC) officials to getting them to events.

“Some of them are the guests of top sports ministry officials.

They have no tickets to watch events. All most them are doing is to wake up, stroll around Rio

while others are busy shopping,” revealed a top federation officials who is irked by their presence.

When Team Nigeria returned from the Olympic in London four years ago with no medal, it was resolved that officials with no business at the Games are no longer going to be part of the country’s delegation in future.

But the situation here now with more delegations than athletes appears to have defeated the mantra of change preached by the Muhammadu Buhari administration.

Duro Ikhazuagbe in Rio

Despite not winning any medal so far at the ongoing 31st Olympic Games here in Rio de Janeiro, Brazil, officials of Team Nigeria who are not bothered by the poor outing so far, are smiling, going on shopping spree with a lot of dollars in their pockets.

Majority of these Federal Ministry of Youth and Sports officials are collecting between $300 to $400 dollars per day while the athletes are on $150.

Some of the athletes who spoke here yesterday said most of them who were asked to pay their ways from their

respective locations in Europe to Nigeria before travelling in group to Brazil are yet to get their refunds.

Take the case of the table tennis players, Aruna Quadri who got to the quarter final of the singles event before being edged out by world number one player, Ma Long of China, is yet to get his ticket refund.

Same as Olufunke Oshonaike and Segun Toriola.

They are expected to leave camp tomorrow.

Team Nigeria camp also revealed yesterday that athletes are going through hell to train here as there are no vehicles to take them to the various

training venues.

“Our officials refused to pay the official rates for the Brazilian drivers attached to the four vehicles allocated to Team Nigeria. So the drivers are not driving us,” cried one of the athletes at the Games Village.

It was also learnt that instead of these Nigerian officials to pay $9,000 for six rooms for the basketball team before the games began because they claimed not to have money, they ended paying $20,000 for only two rooms when they arrived here.

“Is that not stupidity of the highest order? They

knew that majority of the basketball players are bigger than the normal beds provided in the athletes villages and should have made provision to accommodate them but chose not to do so,” our source further revealed.

MEDAL TABLE COUNTRIES United States

G S B 26 21 23

Britain

16 16

China

15 14 17

Russia

9 11 11

Germany

8

6

8

5

Lottery Officials Offer Dollar Incentives to Team Nigeria As Team Nigeria continues its search for the first medal at the Olympics in Rio, a delegation of National Lottery Trust Fund and National Lottery Regulatory Commission, led by Habu Gumel and Mr Adophus Ikpe respectively have promised monetary incentives to further

propel the country’s athletes to win medals.

The delegation who has been supporting Team Nigeria equally announced $2,000 for any athlete who wins gold while a silver medallist would be rewarded with $1,500 and bronze winner with $1,000.

This financial pledge is coming at a time that both officials and athletes are on the edge waiting for Team Nigeria’s first medal.

Meanwhile, all expectations of a possible medal from weightlifting and the women’s 400m events concluded Sunday

night yielded no medal.

Maryan Usman’s efforts in the +75kg Snatch and Jerk could only place her 9th in the overall ranking while Patience Okon George and Margaret Bamgbose semi final placed them 8th and 7th positions respectively.

WJS/YEDA Announce New Date for Pele’s Visit The visit to Nigeria of Brazilian football icon, Edson Arantes do Nascimento, aka Pele, earlier scheduled for August 10 has now been rescheduled to September 21.

The Brazilian football legend

was earlier billed to arrive in Nigeria last month but was postponed due to ill health.

The organisers of the visitWinihin Jemide Series and Youth Experience Days Africa have now set new dates for

the 2016 WJS/YEDA Legend Edition with Pelé following confirmation from him on his improved health and enthusiasm towards his visit to Nigeria.

Activities for the event will

be spread over two days, commencing with the gala evening on Friday September 23, and culminating with the youth sports clinic and celebrity exhibition match the next day.

T H I S D AY TUESDAY AUGUST 16, 2016

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Tuesday August 16, 2016

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Price: N250

MISSILE Abazie to Importers

“It has also been reported that because kerosene is currently in short supply in the country, it is being sold at a premium price by importers, and so it is also speculated that some importers of Jet A1 downgrade the product and sell it as Dual Purpose Kerosene (DPK). So the combination of these two factors in recent months have led to the scarcity of aviation fuel with all the attendant hardship on airlines and air travellers in the country.”

– Chairman of thePetroleumDownstreamGroupof theLagosChambersof CommerceandIndustry, Mr.Ken Abazie, accusingaviation fuel importersof beingresponsiblefor thescarcityoftheproduct.

TOYINAKINOSHO GUEST COLUMNIST

Baru’s Triumphant Return: Be Afraid! Be Very Afraid!

F

our months after he was shunted to a position that was far less influential than his previous post, Maikanti Baru emerged, July 4, 2016, to take the top job at the Nigeria National Petroleum Corporation (NNPC), the state hydrocarbon company. His appointment as Group Managing Director (GMD) spelt victory for the old guard at the corporation, who considered the appointment of Ibe Kachikwu as an imposition from outside. This group of NNPC apparatchiks, who’ve spent between 25 and 30 years at the company, generally saw Kachikwu’s sweeping March 2016 re-organisation as largely a plot to oust Baru, until then the Group Executive Director of Exploration and Production, arguably the most powerful position after the GMD. Mr. Kachikwu was vice-president of the local subsidiary of ExxonMobil when he was appointed GMD of NNPC in August 2015, to wide public acclaim. He became the Minister of State for Petroleum Resources three months after. In those two roles, he performed regulatory, policy making and commercial duties, a situation which was clearly untenable.

The removal of one of the two portfolios from his office has been hailed as an important step in the separation of regulatory functions from commercial duties. There are reasons to believe that Kachikwu could have done a much better job than he did in his year long position as NNPC GMD. He tended to over promise and under deliver. He began too many experiments with little or no planning. He talked too much. He had a re-organisation that changed a few titles and increased NNPC’s already unacceptable opex by creating a number of pointless and expensive senior positions. And he could not perfume away the “smell” of corruption around him: he seemed enthusiastic about every “lucrative” transaction, one of them reportedly blocked by the Presidency.

But is Baru a better choice? Seriously?

None of the leaders of the Nigerian companies who have invested more than $500 million in upstream asset acquisition in the last five years would opt for Mr. Baru as GMD. They wouldn’t say this openly for fear of retribution. Baru, a Ph.D holder in Mechanical Engineering from Ahmadu Bello University, is a career long NNPC employee, who joined the corporation as a Deputy Manager 27 years ago. And that is the problem. He is too steeped in the intrigues of the NNPC and the corporation’s predilection for stalling investment. NNPC is a political party, with a profusion of ranking managers who consider first, their personal interests when there is an investment pie on the table, then the selfish interests of their political benefactors, and in poor last place, the national interest.

To understand why Baru is clearly a wrong choice at this time you need to review Kachikwu’s tenure and situate it in the context of the “NNPC tendency”.

When Kachikwu arrived the NNPC Towers last August, he met all the problems that had dogged the corporation for 20 years and which, largely, were created by a combination of corruption, high-handedness, bureaucratic incompetence and deliberate disregard for solutions which lead to stasis. The key ones on the GMD’s table were Joint Venture Cash call arrears, PSC disagreements, NPDC operatorship stalemate, refinery downtime, and the opacity around NNPC’s retention of monies earned from crude oil sales, especially the revenues accrued from the 445,000 barrels of oil per day “allocated” to the corporation’s refineries.

As a minister, he inherited the subsidy challenges and the stonewalling of the Petroleum Industry Bill.

He faced the problems headlong. He didn’t shy away from them. And what we see, largely as his faults, were created in the process of his trying to solve the problems.

He tried to address the refinery issue, setting up two clear programmes. One is to get partners to invest in these ailing processing plants and nurse them back

Baru to health. The other is to bring in companies to set up modules within the refinery complexes and share infrastructure. That way, it is hoped, the inefficiencies of the old superstructure would wither away, as new modules, run by the private sector, bloom in these plants. Some observers have miffed at these two programmes, a group wondering who is going to invest in any refurbishment of the old refineries, others questioning the idea of installing modules in existing refineries: “Where is the space”? But tenders are out for both and the programmes are going on.

The complaint about JV cash call arrears was patently ignored by the Goodluck Jonathan administration, encouraged by NNPC managers who had also badly managed the PSC debacle. JV cash call arrears refer to monies owed by the NNPC for capital and operating expenses made by the six operating companies, who deliver most of the hydrocarbons that Nigeria exports.

The PSC issue speaks to trigger clauses in the contract between Nigeria and operating companies, many of them signed at the onset of deepwater exploration in the early 1990s.

Kachikwu wrote to all the JV operators to come around the negotiating table and discuss a way out of the cash call challenge. This was a problem that the NNPC before him, didn’t even consider urgent, even though its lack of resolution had helped depress the rig count, a key index of the health of a petroleum economy. Prior to his removal from the position of GMD, negotiations had been going on between the NNPC and the majors since April 2016. An industry wide agreement that solves the JV cash call arrears, if achieved, may possibly be the signal achievement of the NNPC in the last 10 years.

Kachikwu had also set up negotiations to amicably resolve the PSC disputes between NNPC and some of its PSC contractors. These contractors had commenced arbitration against the NNPC after all their attempts to resolve the disputes had failed and had defeated NNPC in all the five arbitration proceedings that have been concluded. One can understand why NNPC is angry about the attitude of their PSC contractors to the good faith showed by the Nigerian state in this case.These contracts were very generous agreements, signed around 1993, at a time of poor knowledge of the working of the deepwater petroleum system, and against a backdrop of oil prices of less than $20 per barrel.

A layman’s example of how sweet these contracts were goes thus: If a hydrocarbon charged reservoir holding a billion barrels of oil was found in excess of 800-metre water depth, the royalty to government accruing from the development of the field would be less than 5% (as opposed to up to 20% royalty which is payable for production from onshore fields).

And if it was in excess of 1,000-metre water depth,

the contractor company would pay nothing at all as royalty.

The law also prescribed an investment tax credit (ITC) as of 50% of the qualifying expenditure, in accordance with the production sharing contract term for the applicable accounting period. This is set off against tax liabilities. In layman’s terms, this means that if a PSC contractor spends $1 billion on the asset, when production commences, the tax it would have paid on the crude oil produced is reduced by a whopping 50% of its $1billion investment i.e. $500Million. And it would in the meantime also be entitled to receive a quantity of the crude oil produced as cost oil to compensate it fully for the $1 billion it has invested. In other words, for every dollar spent on a field that reaches production, the contractor in effect receives crude oil worth $1.50.

The government, however, included three re-opener clauses which could have given the Nigerian state far more take than was granted in the contract, if the deepwater projects ever turned more profitable than envisaged.

The clauses were: • A re-examination of the fiscal terms, if oil prices reach $20, as the profitability of the licencees would be greater and the need to equitably have more government revenue would be established.

• A re-examination and re-negotiation of the fiscal terms, for more equity in favour of government, should there be discoveries above 500 million barrels.

• An overall review of the contract, after 15 years.

By 1997, the Bonga and Erha oil fields, each with reserves exceeding 500 million barrels, had been discovered by Shell and ExxonMobil respectively.

By 2001, oil prices had surged far ahead of $20 per barrel. Oil prices have hovered around $100 and more for the past six years, up until late 2014 when they began to decline sharply. Bonga and Erha were both in production by 2006. In 2007, each of them was producing in excess of 150,000BOPD. NNPC called for

a review of the agreements and the PSC contractors responded. Several meetings were held between the parties but NNPC showed no seriousness to resolve the issues through negotiation. Instead it went ahead to unilaterally enforce its own interpretation of the PSCs. NNPC’s argument was that PSC contractors were not entitled to ITCs because their costs were fully paid back to them through the allocation of cost oil. Though a clearly logical argument, the problem was that it went against the express provisions of the PSCs and the law which governs the PSCs. As noted above, NNPC has a right to be upset about the lopsided nature of the PSC agreements entered in the early 1990s in a very different price environment.

However, given that the relevant provisions were clearly in support of the PSC contractors, NNPC’s best option was to trigger the reopener clauses and enter into negotiation with the PSC contractors to adjust the terms of the PSCs. The PSC contractors are Nigeria’s partners after all, not our enemies. But after the half-hearted discussions held before the PSC contractors resorted to arbitration and until Kachikwu was appointed GMD, this option was not taken.

Mr. Baru has been part of the kind of leadership which allows problems to accumulate while pursuing selfish interests.

It has been said times without number that the same majors, the world’s largest oil companies, who operate here are also present in Angola, a much smaller country than Nigeria. The Angolans get what they want, whereas Nigerians simply fumble, because of NNC’s carelessness, and such carelessness is as much the fault of government as it is the making of those who run the Nigerian state hydrocarbon company. This is the smithy in which Maikanti Baru was forged.

• Akinosho is publisher of Africa Oil+Gas Report

NOTE: The rest of this article continues in the online edition of THISDAY: www.thisdaylive.com

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