Monday 29th August 2016

Again, CBN Meets Bank CEOs Today, Considers All Options FG revenue drops to N1.159tn in Q2, investors await flurry of economic data this week Obinna Chima In bid to ensure financial system stability and integrity, while restoring calm, the Central Bank of Nigeria (CBN)

will today meet with the Body of Bank CEOs, following which it will consider the plea by eight bank executives whose institutions were suspended from the foreign exchange (FX)

market last Tuesday, to give them more time to return the Nigerian National Petroleum Corporation (NNPC)/Nigerian Liquefied Natural Gas (NLNG) Company dollar deposits held

by the affected banks to the Treasury Single Account (TSA) domiciled with the CBN. Nine banks were initially suspended from participating in the FX market by the CBN

last Tuesday for failing to return $2.334 billion belonging to the NNPC/NLNG to the TSA, despite the federal government’s directive since August last year that

all government deposits must be remitted to the account by September 15, 2015.

The eight banks – First Continued on page 9

INSIDE YOUR FREE COPY OF HOME AND DESIGN MAGAZINE Monday 29 August, 2016 Vol 21. No 7794. Price: N250

www.thisdaylive.com TR

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Buhari: My Comments on Chiboks Girls Have Been Politicised

Says FG willing to consider prisoner swap for girls Nigeria to join Top 100 Countries in Ease of Doing Business by 2019 Iyobosa Uwugiaren and Tobi Soniyi in Abuja with agency report

L-R: Managing Director, Arco Integrity Engineering, Mr. Pius Jabhu; Group Managing Director/CEO, Arco Integrity, Mr. Alfred Okoigun; and Chairman, Arco Integrity, Mr. Joseph Akpieyi, speaking with State House correspondents after a meeting with President Muhammadu Buhari at the Presidential Villa, Abuja… recently godwin omoigui

President Muhammadu Buhari has reiterated the preparedness of the federal government to discuss the release of the Chibok girls kidnapped by the Boko Haram terror group since 2014, even as he expressed concern that his comments Continued on page 9

PIB: NNPC Concerned over Move by Petroleum Ministry to Assume Control of Proposed IJVs Ejiofor Alike The attempt by the Ministry of Petroleum Resources to assume control over the proposed Incorporated Joint Ventures (IJVs) and the Asset Management Company to be created by the new Petroleum Industry Bill (PIB) may set the ministry on a collision course with the Nigerian National

Petroleum Corporation (NNPC), THISDAY investigations have revealed.

The original PIB submitted to the National Assembly by the Umaru Musa Yar’Adua administration had provided for the corporatisation of the oil joint venture (JVs) assets held by NNPC and the international oil companies (IOCs) into IJVs.

But the IOCs had opposed the establishment of the IJVs following concerns that the NNPC, which controls majority stake in the existing joint venture oil assets, might insist on operating the incorporated entities.

As a result, the IJVs were removed from the revised reform bill resubmitted by the administration of former

President Goodluck Jonathan in 2012 to the National Assembly.

However, the current administration of President Muhammadu Buhari has unbundled the PIB into three legislations for easy passage and also reintroduced the IJVs in the revised bill to resolve the cash call challenged hampering the existing JVs, which have

accumulated to unpaid arrears of over $6 billion.

It was also gathered that splitting the PIB was done to ensure that regulatory and fiscal issues are dealt with separately.

The Ministry of Petroleum, it was learnt from a top NNPC source, is in the final stages of completing the comprehensive executive drafts of the split

PIB. It was also gathered that the first of the three pieces of legislation under the revised PIB being prepared by the executive arm of government is called the “Governance PIB”, while the version drafted by the Senate is called the “Petroleum Industry Continued on page 9

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MONDAY, AUGUST 29, 2016 • T H I S D AY

PAGE NINE PIB: NNPC CONCERNED OVER MOVE BY PETROLEUM MINISTRY TO ASSUME CONTROL OF PROPOSED IJVS Governance Bill, 2016”.

Investigations have, however, revealed that the NNPC is not happy with the attempt by the Ministry of Petroleum to take over direct control of the proposed IJVs, Production Sharing Contracts (PSCs) and the Asset Management Company.

Sources at the NNPC, who spoke to THISDAY at the weekend, said the direct supervision of the IJVs by the petroleum ministry would render the proposed national oil company (NOC), which would emerge after the passage of the legislation, “rudderless”.

“NNPC is unhappy with the attempt by the ministry to take out the proposed IJVs and the Asset Management Company which will be created from NAPIMs, and the PSCs and

place them under the direct supervision/control of the Ministry of Petroleum.

“If this happens, this would effectively render the proposed NOC rudderless and with no oil assets under its control.

It also deviates from the acceptable model of NOCs in other parts of the world that have always retained control of their countries’ oil assets operated in conjunction with the IOCs,” one of the sources explained.

Efforts to get the Group Managing Director of NNPC, Dr. Maikanti Baru, to speak on the matter were not successful.

But Baru’s Technical Assistant on Communications, Mr. Aliyu Abubakar, had written in a recent article published in THISDAY that Baru expected action from the

committee that was negotiating with the JV partners to “put in place a process where the JVs will not be cash calling government and eventually transit to the Incorporated Joint Venture (IJV) model as is the case with the Nigerian Liquefied Natural Gas (NLNG), where the IJVs would be autonomous under the direction of its board and management”.

“It can fund its operations, pay royalty and taxes to government as well as dividends to its shareholders as a limited liability company,” Abubakar had said.

Also citing Egypt, Oman and the Nigeria LNG Limited, which operates under the IJV model, the former Special Adviser to the late President Umary Yar’Adua and former

President Olusegun Obasanjo, Petroleum Matters, Dr. Emmanuel Egbogah, had in a recent letter to President Muhammadu Buhari insisted that a long-term solution to the cash call challenge should involve conversion of all JVs to IJVs, which can obtain loans and go to the capital market for funding.

“The IJV will be an entity incorporated under the laws of the Federal Republic of Nigeria, registered with the Corporate Affairs Commission (CAC) of Nigeria and the incorporation process, including capitalisation and restructuring, will be carried out through negotiations with the respective international oil companies during the reform transition period,” Egbogah had argued.

He urged the president to ensure that all existing JVs are converted to IJVs so that they would become operational not later than the 2018 budget cycle.

While awaiting the executive version of the revised PIB from the Ministry of Petroleum, Section 37(1) of Petroleum Industry Governance Bill, 2016, currently before the Senate provides for the incorporation of the Nigeria Petroleum Assets Management Company and the National Petroleum Company.

The bill proposes that: “Upon incorporation and the transfer of assets pursuant to this Act; (a) the Nigeria Petroleum Assets Management Company (hereinafter called the ‘Management Company’ in this Act) shall be responsible

for the management of the assets detailed in the Fourth Schedule to this Act”.

Section 4(b) provides that “the entities shall be governed and managed on the basis of the provisions of the Companies and Allied Matters Act and Securities and Exchange Commission’s Codes of Corporate Governance. “(c) The annual reports and annual accounts submitted to the Annual General Meeting shall be published on the entity’s website and at least three widely circulating national newspapers”.

Efforts to get the Minister of Petroleum Resources, Dr. Ibe Kachikwu, to speak on the concerns raised by NNPC officials proved abortive yesterday, as calls and a text to his phone were not answered.

“Based on this, we discovered $6 billion was held by all the banks and we agreed with them that 50 per cent of the amount should be paid by October last year, 25 per cent after 60 days and the outstanding 25 per cent after 30 days.

“However, after meeting the October deadline by paying $3 billion, the banks have since failed to meet the December and January deadlines and have only refunded an extra $900 million, leaving an outstanding balance of $2.1

billion. All entreaties that they should return the balance of about $2.1 billion have fallen on deaf ears, which was what led to the suspension of the nine banks last week.

“We even discovered that some of the banks had converted the dollar deposits to naira and lent them out for various projects, which was ill-advised, given that most government funds are current account or demand deposits and should not be lent out for long-term projects, so basically

there was a major mismatch of assets and liabilities.

“It got to a point whereby the presidency felt that the CBN Governor, Mr. Godwin Emefiele, was treating the banks with levity because he was once one of them. So, the measure to suspend the nine banks was forced on the CBN by the banks who failed to comply with the directive.”

The official said since the suspension, the central bank has

economic assets by militants in the Niger Delta.

He said the militants must dialogue with the federal government or be dealt with in the same way as Boko Haram.

“We are talking to some of their leaders. We will deal with them as we dealt with Boko Haram if they refuse to talk to us.

“As a government, we know our responsibility, which is to secure the environment.

It is clear to us that lenders won’t fund projects in insecure environments.

“We realise that we have to secure the country before we can efficiently manage it,” the president said.

Buhari told the Japanese prime minister that security in the Gulf of Guinea, which is greatly affected by piracy in Nigerian territorial waters, is a priority for the federal government.

“We have provided funds to our navy to buy new platforms, train and effectively organise the personnel to protect the area. We are looking forward to support from developed nations for satellite surveillance covering the Gulf,” the president said.

Recalling his audience with G7 leaders in Germany, which was attended by the prime minister, Buhari thanked Japan for responding positively to the requests by Nigeria for the rehabilitation of victims of Boko Haram and rebuilding of infrastructure in the Northeastern part of the country.

The president however said there was still more to be done in the area of education, health care and other infrastructure to ensure the quick and voluntary return of displaced persons to their native communities.

On the United Nations Security Council reform, Buhari agreed to work with Japan on the reforms, stressing that the case for a permanent seat for Africa on the council was a moral one.

He equally expressed Nigeria’s support for Japan in its bid for a UN resolution on the problems in East China

and South China as well as the “uncontrolled nuclear tests

by North Korea”.

“The UN system is sufficient for the resolutions of all disputes and no nation should be above the United Nations.

“This has to be made absolutely clear and I assure the prime minister that I will meet as many leaders as possible at the forthcoming UN General Assembly concerning the issues,” he said.

In his remarks, Prime Minister Abe congratulated Buhari “for courageously tackling Boko Haram terrorism”.

He said Nigeria and Japan must work together to improve the investment climate, in view of the many Japanese companies wishing to invest in Nigeria.

He reaffirmed Japan’s commitment to rapid development in Nigeria through quality delivery of ongoing projects in the country, including the Jebba Hydro Power project and the Lagos rail project.

The president also promised to sustain concrete measures to diversify the economy by devoting more resources to agriculture in the 2017 budget, noting that African countries had a lot to learn from Japan on developing agriculture.

He said: “This year, in Nigeria, we started an aggressive farming programme that entails organising farmers into cooperatives in the second and third tier of government.

“We intend to put more resources in our 2017 budget, especially in the procurement of machinery for land clearing, fertiliser, pesticides and training of less-educated farmers, as farm extension instructors.

“We have already registered some success this year in a number of states, we identified some 13 states that will be self-sufficient in rice, wheat and grains before the end of 2018.

“We are very positive that soon we will be able to export these food products. We are also lucky that the farming

season in the northern part of the country has been very good and we are expecting a bumper harvest this year.”

On his expectation from TICAD, Buhari said Japan’s story of rapid economic growth, hard work and advanced technology should encourage Africans to strive harder and solve its development challenges.

“Japan has greatly advanced in technology, particularly in solar power, and infrastructure to spur growth in medium and small-scale industries.

“Because of the advanced use of technology, farming and agriculture can become competitive.

“Japan has the knowledge, technology and capital to assist African countries to develop and Japanese firms are in a very good position to successfully compete for the development of infrastructure in Nigeria,” he said.

The president called for increased participation of the Japanese government and the private sector in the Nigerian economy.

AGAIN, CBN MEETS BANK CEOS TODAY, CONSIDERS ALL OPTIONS Bank of Nigeria (FirstBank) Limited, Diamond Bank Plc, Sterling Bank Plc, Skye Bank Plc, Fidelity Bank Plc, Keystone Bank Limited, First City Monument Bank (FCMB) Limited, and Heritage Bank Limited – were yet to remit a total of $1.804 billion NNPC/NLNG funds to the TSA as of Friday.

United Bank for Africa (UBA) Plc, which complied last week by refunding $530 million to the TSA, has since been re-admitted into the FX market.

However, following the plea

by the eight banks that remain barred from participating in the FX market, the central bank will be meeting with all bank CEOs today and will afterwards consider the plea to give the affected banks more time to refund the funds, a reliable industry source informed THISDAY yesterday.

A top CBN source also confirmed to THISDAY that the central bank was considering the request by the CEOs of the affected banks after the meeting held with them last

week following their suspension from the FX market.

He, however, blamed the banks for failing to comply with the deadlines and repeated reminders given to them to refund the NNPC/NLNG dollar deposits since last year.

According to him, “Following the federal government’s directive on the movement of all government funds to the TSA, the NNPC approached us last September to compel the banks to return its dollar deposits to the TSA.

Continued on page 10

BUHARI: MY COMMENTS ON CHIBOKS GIRLS HAVE BEEN POLITICISED on the abducted schoolgirls have been politicised.

The News Agency of Nigeria (NAN) quoted the president as saying in an interview with journalists in Nairobi, Kenya, at the weekend, that government was ready to dialogue with bona fide leaders of the terror group who know the whereabouts of the girls.

He also encouraged the sect to choose a recognised non-governmental organisation (NGO) to act as an intermediary for the release of the girls, adding that Boko Haram could begin negotiations on a prisoner swap if it could provide evidence to the NGO that they had the girls.

“I have made a couple of comments on the Chibok girls and it seems to me that much of it has been politicised.

“What we said is that the government which, I preside over, is prepared to talk to bona fide leaders of Boko Haram.

“If they do not want to talk to us directly, let them pick an internationally recognised non-governmental organisation, convince them that they are holding the girls and that they want Nigeria to release a number of Boko Haram leaders in detention, which they are supposed to know.

“If they do it through the ‘modified leadership’ of Boko Haram and they talk with an internationally recognised NGO, then Nigeria will be prepared to discuss for their release,” he said.

Buhari, who spoke to the media on the margins of the sixth Tokyo International Conference on African Development (TICAD VI), however, warned that the federal government would not waste time and resources with “doubtful sources” claiming to know the whereabouts of the girls.

“We want those girls out and safe. The faster we can rescue them and hand them over to their parents, the better for us,” he said.

The president maintained that the terror group, which has pledged allegiance to ISIS,

had been largely decimated by “gallant Nigerian soldiers” with the support of neighbouring Chad, Cameroun, Niger and Benin.

“Some of the information about the division in Boko Haram is already in the press and I have read in the papers about the conflict in their leadership.

“The person known in Nigeria as their leader, we understand was edged out and the Nigerian members of Boko Haram started turning themselves to the Nigerian military.

“We learnt that in an air strike by the Nigeria Air Force, he was wounded. Indeed their top hierarchy and lower cadre have a problem and we know these because when we came into power, they were holding 14 out of the 774 local governments in Nigeria. But now they are not holding any territory and they have split into small groups attacking soft targets,” he said.

On the militancy in the Niger Delta region, the president said the federal government was also open to dialogue to resolve all contending issues in the area.

“We do not believe that they (the militants) have announced a ceasefire. We are trying to understand them more – who are their leaders and which areas do they operate from and other relevant issues,” he said.

On the Nigerian economy, Buhari pledged to catapult the country into one of the most attractive and easiest places of doing business in the world by 2019.

Speaking at a plenary session on “Dialogue with the Private Sector” in Nairobi at the weekend, Buhari said his administration was implementing policies and measures to create the right and enabling environment for businesses and investors in Nigeria.

Nigeria is currently ranked 169 out of 189 countries by the World Bank in its Ease of Doing Business report for 2016.

In multiple statements issued by his media aide, Mr. Garba Shehu, yesterday, the president told the session attended by several African leaders, Japan Prime Minister Shinzo Abe and international business executives that his administration’s vision was to make Nigeria one of the topmost investment destinations in the world within the shortest possible time.

“We believe government has a particular responsibility to create the right and attractive environment for businesses and economic activities to thrive.

“In furtherance of this vision, we have launched the Presidential Enabling Environment Council (PEEC) and Inter-ministerial Council to oversee the efforts of government to remove various bottlenecks that stifle businesses and economic activities, and thereby create economic activities and the right enabling environment and investment climate in Nigeria.

“The secretariat will include strong private sector representation that would be led by experienced business professionals from the private sector.

“We are committed to moving up the ranking of the World Bank’s Ease of Doing Business Index 20 places in the first year and be in the top 100 within the next three years,” the president said.

Buhari also assured foreign investors that their investments in Nigeria would be fully secured and protected.

Speaking at a bilateral meeting with the Japanese prime minister on the sidelines of the sixth TICAD summit, Buhari outlined several steps so far taken by his administration to secure the country and improve the business environment in Nigeria.

He told the Japanese leader that with the defeat of Boko Haram terrorists by the military, the attention of the administration was now focused on stopping the destruction of the country’s

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T H I S D AY • MONDAY, AUGUST 29, 2016

NEWS

Nigeria is No. 1 Scrabble Nation in the World, Yet Team Denied French Visas

Nigeria is the English-speaking world’s Scrabble superpower.

Africa’s most populous nation is home not only to the global Scrabble champion, but team Nigeria ranks as the world’s top Scrabble playing nation — ahead of the U.S. in second place.

The Scrabble world champion is Wellington Jighere. He’s 33, has a soft voice, a slow smile and a penchant for fedoras, earning him the nickname “the Cat in the Hat”. Jighere acknowledges that he’s taciturn by nature, but also has an explosive, infectious laugh, though he considers Scrabble serious business.

“You can’t afford to waste too much energy doing unnecessary chatter,” he says. “During a tournament, I see it as business time. And that is no time to be joking around.” Jighere plays chess to relax, “and for fun,” he says.

Jet-lagged and weary, Jighere was crowned the world Scrabble champ last year in a grueling 32-round competition in Australia.

Up to 30 of the top 100 global players are from Nigeria, which has the highest percentage of any country in the top 200. The Nigerians’ apparent collective strategy — short words that rack up the points.

Nigerians have been credited with perfecting that tactic under the tutorship of senior team coach, Prince Anthony Ikolo. He says Nigerians are passionate about Scrabble and the short word method gives them an edge.

Many put Nigeria’s towering Scrabble prowess down to its players’ ability to “choke the board” as they say, with this defensive play.

“The game of Scrabble is actually built around short words — especially five letter words,” says Ikolo. “If you have such a word base, then you are good to go. But it would be a very big mistake for the world to think our players only know

short words, especially five-letter words,” he warns.

The coach says “the short words help you to be defensive (by blocking longer words from opponents, but when it’s time to be offensive, we know those long words also. Nigeria is a force to be reckoned with when it comes to Scrabble”.

Ikolo, who’s also a university mathematician, came up with lists of five-letter words and distributed them to his players, including Jighere the world champion, to train them how to block the board. The coach says, armed with these, the Nigerians could take on and beat competitors playing seven-eight or even nine-letter words.

The other strategy was to gather his players at a hotel, before the tournament, and have them play two days of non-stop Scrabble. It appears to have worked.

Jighere though says his personal strategy is to have “no strategy at all. I play a fluid kind of game. Yah. I really don’t have a particular kind of style that you can pin me to”.

“So, when you are expecting me to do the traditional thing, I will just choose to do something that is uncharacteristic. It’s what sets me apart from everyone else,” he says.

Jighere should know. He and team Nigeria triumphed at the World English-Language Scrabble Players Association world championship in Australia in November 2015. They fully intend to hang onto that success when they defend those titles next year in Kenya, he says.

Nigeria’s president, Muhammadu Buhari, phoned Australia to congratulate him, says Jighere with a big smile. “It felt so warm to have him speak with me right then and there. It was a very, very important experience.

He told me how proud he was of my accomplishment and how

Wellington Jighere (right)… Being the best at the game of Scrabble proud I have made the nation as a whole, not just the nation but Africa as a whole. And that it has really gone to prove that we are truly the giants of Africa.”

Jighere bested a Briton in Perth, while Team Nigeria dethroned the U.S., which had been at the pinnacle for about decade, with Nigeria yapping at its heels, determined to topple the Americans.

“We are currently ranked No. 1 nation in the world for Scrabble,” says the champ. “In the world we have the highest number of persons in the top 100 rated Scrabble players. We have as many as 20 to 30 tough masters in Nigeria that can really give you a tough fight any time any day.”

Ikolo, the coach, will attest to that. Jighere’s friends and fellow Scrabble masters cut him no slack, in the jovial, noisy and garrulous atmosphere during the Lagos tournament.

Ikolo gleefully told NPR that until the Nigeria National Scrabble Players competition in the main city of Lagos, at the tail end of July, Jighere had failed to win any significant tournament after his success in Australia last year.

“Since he became the world champion, he has been beaten

black and blue by his colleagues.

It tells you how strong Nigeria’s Scrabble is. It tells you that the Scrabble scene we have here is a very tough one. It’s highly competitive and nobody can boast tomorrow that I’m going to win this, I’m going to win that when it comes to Nigerian Scrabble playing.”

So why Scrabble? “Ah, I didn’t exactly choose Scrabble,” says Jighere. “I ran into some friends who were tournament players and I beat them. They told me ‘Ah, if I could do this well against them, that means I should come to the next tournament’.” He adds, “And I was like, ‘Ah, you mean they play this in tournaments?

OK, let's go.’ And the rest, as they say, is history.” And he laughs.

That was in 2002. Today, Jighere sits atop the global Scrabble tournament ladder. He describes how he had to overcome fatigue and jet lag to win in Australia.

Learn those words, commit them to memory and stay cool – and awake.

Scrabble was given official recognition as a sport in Nigeria in the 1990s. But local players, coaches, parents, officials and tournament organisers say government assistance has been patchy and more must be done

to support, sponsor and finance Scrabble.

“Why will the government and corporate firms not look the way of Scrabble?” laments coach Okolo. “Government and corporate firms should come to the aid of Scrabble.”

The Lagos State Government provided the venue — Teslim Balogun stadium for indoor sports — for the recent tournament, as well as organising some logistics.

But senior team coach Ikolo says while cash prizes are welcome, the authorities — and corporate sponsors — should do more to capitalise on Nigeria’s global success at Scrabble. “We don't value that Nigeria is ranked the best Scrabble playing nation in the world,” says Ikolo, “and we have the world Scrabble champion, Wellington Jighere”.

And yet Scrabble has caught on in Nigeria in a big way, among veterans and youths. There are scores of clubs up and down the 36 states of a nation of 180 million people. Daylong and weekend tournaments are held regularly and young players, like 10-year-old Angela Osaigbovo, are champions in their own right.

She’s been playing Scrabble since she was five and began competing at age six. “Scrabble for me is a fun way of using my academics, to help me in my hobbies and afterschool life,” says Angela with a big smile. Thrusting her Scrabble board into the air, she then shakes her bag of tiles, and tells me, “I’m good in Math and Literacy. And I think it’s due to Scrabble.”

As a Scrabbler, she likes using “premiums, or bingos, which are 7-letter words – such as zaniest, quiting and players.”

Relaxed and confident, Angela sits next to Vincent Okere, who’s 13. The teen won the local players championship and the trophy in the youth category in Lagos. He spent most of the tournament weekend prowling around the

Masters, watching every Scrabble move by the veterans and, no doubt, learning.

But no hard feelings, says Angela, who came in second. She was working hard in the build-up to the youth championship at the Mind Sports International (MSI) global tournament in Lille, France, starting Saturday.

Every other year, MSI organises a championship for all-comers, while WESPA holds its tournaments the other years.

“Yes, I’m very excited. I’m aiming to win the WYSC – which is World Youth Scrabble Championship” in Lille at the end of August, Angela says, adding.

“I’m not very shy!”

Her mother, Toyin Osaigbovo, is delighted that Angela loves Scrabble and says her daughter possesses what Nigeria has in abundance — focus and determination.

“Nigerians are very determined and dogged people,” says Osaigbovo. “And once we set our minds to something, we achieve it.”

Angela had this warning for their global competitors — “Watch out, because Nigeria is coming, with force!”

However, Angela's disappointed mother says her daughter was refused a French visa, so won’t be able to compete in Lille since the youth championship began on Saturday.

The champ, Wellington Jighere, announced yesterday that he and other Nigerian players who applied had also been denied visas to travel to France. Social media has been twitching with outrage. Now Jighere says they’ve been told to report to the French Embassy today to be issued with visas.

So Scrabblers, you’re warned, Nigeria’s champions are on the warpath!

of US$46.44 per barrel, the price of Nigeria’s reference crude, the Bonny Light (37º API), rose by 35.0 per cent, compared with the level in the preceding quarter.

“The average prices of other competing crudes, namely, the UK Brent at US$45.29/b, WTI at US$45.18/b and Forcados at US$46.05/b exhibited similar trends as Bonny Light.

“The average price of OPEC basket of eleven selected crude streams, at US$42.38 per barrel, indicated an increase of 40.5 per cent, compared with the average of US$30.16/b recorded in the preceding quarter,” it added.

Of the gross federally collected revenue, a net sum of N665.67 billion was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent Derivation Fund in the quarter under review.

On the back of the CBN’s Q2 report on the economy, the markets are expected to witness a flurry of data releases from the National Bureau of Statistics (NBS) this week.

This would definitely influence investment decisions in the coming days, said Lagosbased financial advisory firm, Afrinvest West Africa, last week.

Scheduled for release by the NBS on Wednesday include: the Q2, 2016 quarter unemployment and underemployment watch;

Q2, 2016 foreign trade estimates; Q2, 2016 Gross Domestic Product estimates (Production Approach); July 2016 Consumer Price Index and Inflation; Q2, 2016 Capital Importation and FDI report and July 2016 PMS/ Petrol Price Watch, amongst others.

Of these, focus would mostly be on the Q2, 2016 GDP report and July 2016 Inflation, Afrinvest said in a report.

“Analysts’ consensus forecasts on both data (including ours) is decidedly bearish and we do not expect any positive surprise from the rest.

“The downtrend in growth of the Nigerian economy which began in late 2014 majorly due to falling oil prices, has persisted into 2016, as forex market illiquidity, downtime in power supply and depressed real consumer income continue to weigh on productivity, investment and consumer spending.

“Developments in the forex market - which has seen the naira depreciate significantly against a host of foreign currencies – as well as increases in power and fuel tariffs have had pass-through on consumer prices with the inflation rate in June 2016 far above the CBN’s allowable band of 6-9 per cent and an eight-year high of 16.5 per cent from 9.6 per cent in January,” Afrinvest said.

•Culled from NPR

AGAIN, CBN MEETS BANK CEOS TODAY, CONSIDERS ALL OPTIONS met with the bank executives twice.

He said the primary objective of the CBN is to ensure financial system stability and integrity, and to restore calm in the markets, adding that it is for this reason the CBN is considering their request for more time to refund the NNPC/ NLNG dollar deposits.

“Another reason the CBN is considering their request is because most of them are already speaking to foreign investors and donor institutions to raise money in order to refund the NNPC/NLNG funds,” the official said.

Owing to the suspension of the eight banks from the FX market, the naira fell sharply on the parallel market to a record low of N412 to the dollar on Friday, as against the N397 to the dollar the week before.

On the interbank forex market, the naira also closed at N314.95 to the dollar on Friday, reflecting the huge gap between the interbank and parallel market.

The sharp depreciation of the naira on the parallel forex market was attributed to the strong demand for the greenback by customers of the eight banks that were banned from the official FX market.

It was gathered that a lot of them resorted to the parallel market for dollar purchases to meet pressing obligations, as

they await the resolution of the matter between the banks and the CBN. But a banking source expressed optimism that the plea by the eight banks for more time, if approved, would help to resolve the problem in FX market.

“One of the resolutions from the meeting of the Body of Bank CEOs which met in Lagos last Thursday, was that the affected banks should be given some time to repay the money.

“The meeting which was presided over by the CEO of Access Bank Plc, Mr. Herbert Wigwe, agreed to send a proposal to the CBN to accept a repayment plan and also appealed that the CBN should help them to convince the federal government and presidency to accept the proposal,” the source added.

Wigwe, in a statement last week, said that the body agreed to work closely with the CBN to address the issue that led to the ban in a manner that would protect the stability of the industry, and to ensure proper conduct in the optimisation of the FX market.

While clarifying that there was no concealment in any form, as the banks had always disclosed the funds in their returns, the statement from the Body of Bank CEOs noted that the situation arose out of the maturity mismatch of funds

found in certain strategic sectors to ensure the growth of the economy.

Meanwhile, the federally collected revenue during the second quarter of 2016 fell to N1.159 trillion, which was 51.3 per cent and 8.6 per cent lower than the budgetary estimates for Q2 2016 and the receipts in the preceding quarter, respectively.

In its second quarter economic report for 2016, the CBN attributed the decline in federally collected revenue (gross) relative to budgetary estimates, was due to the shortfall in receipts from both oil and non-oil revenue during the second quarter of 2016.

At N537.19 billion or 46.3 per cent of total revenue received, gross oil receipts were lower than the provisional quarterly budget and the receipts in the preceding quarter by 39.2 per cent and 19.4 per cent, respectively.

The decline in oil revenue relative to the budget estimates was attributed to the persistent fall in receipts from crude oil/ gas exports due to persistent low price of crude oil in the international market and the series of shut-ins and shutdowns at some NNPC terminals owing to pipeline vandalism.

Similarly, at N621.86 billion or 53.7 per cent of total revenue, gross non-oil receipts were above the receipts in the

preceding quarter by 3.2 per cent. It was however below the provisional budget estimates by 58.4 per cent.

The decline in non-oil revenue relative to the provisional budget estimates was due largely to the shortfall in receipts from all of its components except Customs Special Levies (Non-Federation Account) during the review quarter.

Furthermore, the CBN report showed Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.54 million barrels per day (mbd) or 141.68 million barrels (mb) for the second quarter of 2016.

This represented a decline of 0.37mbd or 15.4 per cent, relative to 1.82mbd or 165.62 million barrels produced in the first quarter of 2016.

“Crude oil exports stood at 1.09mbd or 100.28mb. This represented a decline of 20.4 per cent, compared with 1.37mbd or 124.67mb recorded in the preceding quarter.

“Supply disruptions owing to continued attacks on oil installations by vandals accounted for the decline in crude oil production. Deliveries to the refineries for domestic consumption remained at 0.45mbd or 41.40 million barrels during the review quarter.

“At an estimated average

MONDAY AUGUST29, 2016 • T H I S D AY

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NEWS

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

N’Delta Avengers: We’ve Not Nominated Anyone Including Soyinka to Negotiate on Our Behalf

Sylvester Idowu in Warri Niger Delta Avengers (NDA) at the weekend said it did not nominate any personality, including Nobel Laureate, Professor Wole Soyinka, to lead its dialogue team with the federal government.

It described the report that it had put forward Soyinka as the head of its contact to dialogue with the federal government as a lie of the century.

According to a statement signed by its spokesperson, Mudoch Agbinibo, NDA said it was amazed that Soyinka has been taking on the jugular by enemies of the region because of his restructuring stance and need to heed the Niger Delta agitations positively.

“We are amazed that Soyinka, has been taken on the jugular by enemies of the Niger Delta because of his belief that the government of the day should understand the need to restructure and listen to the Niger Delta agitation positively,” it added.

The group also accused the Okah brothers, both of whom are serving time in Nigeria and South Africa prisons, of using disorganised characters from the Niger Delta region to impress the “powers that be at Abuja.”

NDA, while reiterating its support for the Chief Edwin Clark-led Niger Delta Elders and Stakeholders’ conference committee to lead the pan-Niger

Delta negotiations/dialogue team, stated that it was ready for talks whenever the federal government is ready.

“The NDA cannot be teleguided

by Mr. Charles Okah and Henry Okah from their respective prison cells using disorganised characters of the All Progressives Congress (APC) from the Niger Delta to impress Abuja,” the group said.

The militant group said further: “We are not unaware of the creations of the Nigerian intelligentsia community and security apparatus to sustain the Niger Delta struggle to bloat their pocket and credibility.

“We are amazed that Soyinka, has been taken on the jugular by enemies of the Niger Delta because of his belief that the government of the day should understand the need to restructuring and listen to the Niger Delta agitation positively.

“That if, we the NDA have named Soyinka and some incredible names to advise and lead any group is the Lie of The Century! They says when an handshake goes beyond the elbow it has turned to another thing; amazingly, the handwriting are so clear that our noble laureate name is going the infamous way, as he is being named along as an adviser with some unscrupulous characters as NDA dialogue team with the government of Nigeria.

“Putting the records straight; the name/names parading as factions

of the NDA are just the figment of some persons protecting their jobs and hell bent on derailing the wheel of progress in the history of Nigeria and the Niger Delta agitation,”, it added.

The militant group declared: “Our strike teams and command structures have not at anytime contacted these Nigerians at any time to advise or lead any contact with the government of Muhammadu Buhari on the Niger Delta agitation.

“We have shown our respect and restraints to personalities that have been too fixated to impress Abuja in the name of the Niger Delta struggle since the beginning of “Operation Red Economy ” ignorantly or willingly.

“We are not unaware of the creations of the Nigerian Intelligentsia community and security apparatus to sustain the Niger Delta struggle to bloat their pocket and credibility.

“The NDA has unequivocally

given its tacit support to the Clark’s Niger Delta Elders and Stakeholders conference committee to lead the pan-Niger Delta Negotiations/Dialogue Team, whenever Nigeria shows readiness.”

Meanwhile, the umbrella body of Ijaw youths, Ijaw Youth Council (IYC) yesterday hit hard on President Buhari’s alleged stance in applying Boko Haram treatment in resolving the Niger Delta crisis.

The group described the warning to Niger Delta agitators to negotiate or face Boko Haram treatment credited to President Buhari, while discussing with the Japanese leader in Nairobi, Kenya as reckless and pre-judicial to the peaceful resolution of the renewed militancy in the region.

According to a statement signed

by IYC spokesperson, Eric Omare, the Ijaw youths maintained that there was no basis for that statement considering that the circumstances of the Niger Delta are different from the Boko Haram crisis.

“We have just read a statement issued by the Senior Special Assistant to the President on Media Affairs, Mr. Garba Shehu, in Nairobi, Kenya wherein President Buhari while discussing with the Japanese leader warned Niger Delta agitators to negotiate or face the Boko Haram treatment.

“The IYC condemn the statement and state that it is reckless and prejudicial to peaceful resolution of the renewed militancy in the Niger Delta,” it added.

While maintaining that the statement completely displayed the federal government’s lack of commitment towards negotiation, it said there was no basis to threaten Niger Deltans with the Boko Haram treatment when discussions are ongoing and considering the fact that the circumstances of the Niger Delta are different from the Boko Haram crisis.

“It shows that the government has made up its mind to use force

against Niger Delta communities.

“The IYC wishes to alert Nigerians and the international community that the Buhari government is executing a predetermined agenda against the Niger Delta region which is to attack and kill innocent people.

“This is so because the militants attacking oil facilities are not stationed in any particular place to justify the federal government threat to give Niger Delta militants the Boko Haram treatment,” its saved.

IYC recalled that it was the antagonistic posture of President Buhari towards the Niger Delta region that partly contributed to the renewed militancy.

“President Buhari and his advisers should know that force and war can never win them peace to continue with the exploitation of the Niger Delta oil resources.

You may win the war with force but you cannot win peace with force,” it added.

U2 Lead Singer, Bono, Pledges to Aid Borno with Post-insurgency Reconstruction Michael Olugbode in Maiduguri Irish rock star, Paul David Hewson, better known as Bono, has made a commitment to be involved in the ongoing rehabilitation and reconstruction efforts of insurgencyravaged Borno State.

Bono, an ambassador for the United Nations High Commission for Refugees (UNHCR) and the leader of the rock group, U2, who came on the invitation of Africa’s richest man, Aliko Dangote, promised to come back to the state with assistance.

He equally promised to use his connection worldwide to attract aids to the troubled state.

The Borno State Governor, Alhaji Kashim Shettima, used the opportunity of the visit to reward Dangote for his interventions to the victims of insurgency. The governor renamed a popular street in Maiduguri, Baga road after the billionaire entrepreneur.

An estate to be built for victims of the insurgency would also be named after him. The road, according to the governor, would be called Aliko Dangote Road and the estate when completed, would be addressed Aliko Dangote Village.

The estate, an ongoing project of 6,000 one-bedroom flats for victims of insurgency donated by the Dangote Foundation, is estimated at N2 billion.

Shettima, in his address at the Dalori Camp in Maiduguri which is currently being occupied by 37,000 IDPs from Bama Local Government Area of the state, expressed gratitude to Dangote for his empathy to the people of the state who had suffered untold hardship in the hands of

insurgents in the last seven years.

“I want to his this opportunity and on behalf of the good people of Borno State to extend our appreciation to Dangote Foundation. During the last Ramadan season, 230 trucks of assorted food items were donated to our people by Dangote.

“Dangote Foundation has also donated the sum of N2 billion to our dear state for reconstruction and rehabilitation of our destroyed communities, in addition to N400 million donated to us by the same foundation to assist our people.

“We in Borno are ever grateful and pray Allah to continue to guide and protect Dangote and his family and peace to return to our dear state. We also want to call on well to do individuals and corporate organisations to assist Borno in this our trying moment,” Shettima said.

The governor during the visit, also took his August visitors to Bakassi camp which had IDPs from Nganzai, Monguno, Gwoza and other local government areas, after which, the visitors paid a sympathy visit to families of Boko Haram combatants that were rescued by troops and now taking refuge at a secular place in Maiduguri.

Addressing the rescued women and their children, both Dangote and the popular musician, Bono advised the families especially the women to support government policies and programmes as Dangote Foundation would do everything possible to ensure the safe upbringing of their innocent children educationally.

Dangote also called on the rescued victims to continue to pray to Allah to grant peace not only in Borno, but the country as a whole.

FOR A STRONGER NIGERIA

L-R: Nigerian Actress, Aina Vivian Iruobe (Waje); Chairman, Dangote Foundation, Aliko Dangote; and Co-founder, ONE Campaign, Paul David Hewson (Bono), as the Lagos Star joins U2 lead singer and ONE Campaign co-founder, Bono, at a reception to make Naija Stronger, sponsored by Dangote Foundation in Lagos....weekend Sunday Adigun

FG to Earn N17bn Annually from Cargo Tracking Note Moves to check arbitrary charges at ports

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Chika Amanze-Nwachuku The federal government will realise more than N17billion per annum from the implementation of International Cargo Tracking Note (CTN) on all imports into the country.

The Executive Secretary of the Nigerian Shippers’ Council (NSC), Mr. Hassan Bello, disclosed this in an interactive session with journalists yesterday.

The ICTN was first introduced in Nigeria in 2009 under the management of Nigerian Ports Authority (NPA).

It was suspended in 2011, following widespread criticisms by stakeholders in the maritime industry.

Four years after its suspension, the federal government through the NSC re-introduced it to curb activities of importers and ship owners who swindle the federal

government the much needed revenue from the ports through under declaration of tonnages.

President Muhammadu Buhari who endorsed the project had fixed November 3, 2015 as its implementation take off date.

However, the implementation date had been suspended following stiff opposition by the Manufacturers Association of Nigeria (MAN) and ship owners. Also the NSC also needed to fine tune the system to ensure it functions perfectly.

With the ICTN, cargoes in transit can be tracked from port of loading to port of discharge in terms of risk profiling of vessels, crew members, ports of call, mid-stream operations and cargo characteristics.

It is expected that the ICTN will check fraudulent declarations by importers and even ship owners on arrival at the ports.

Nigeria first introduced the CTN in 2009 under the NPA, but had to

suspend its implementation because of the controversies that trailed it.

Bello however explained that all the issues had been resolved and MAN had endorsed the ICTN as a viable project.

He said: “The ICTN like any other new thing was greeted with stiff opposition especially from MAN. We said we cannot introduce this unless MAN becomes satisfied because MAN is a very important statkeholder in the economy.

“As a matter of fact, MAN set up a committee and together with Shipping Association of NIgeria, we were invited to appear and at the end of it all, MAN was convinced that the CTN is a viable project.’’

He stated that the ICTN was being fine tuned to ensure that the desired results were achieved.

The NSC boss said the implementation of the ICTN would bring an end to the increasing incedence of under declaration of

cargoes and concealments, which he said had denied the federal government of huge revenues.

“What we are trying to do now is to interrogate the system. We don’t want to put a system that will not be acceptable, that is not robust. We want the whole thing to be perfect. We are working silently to make sure that is done.

“We estimated that on trial, the federal government will realise N17 billion per annum, but that is going to be with strong compliance. The importance of the project is that it will boost the revenue of the Nigeria Customs because the end of under declaration has come and concealment will not be done any more. So the ICTN is varitable project. It will also help in accerlating cargo clearance.’’

The executive secretary also pledged to put an end to arbitrary charges to make the ports attractive to business.

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MONDAY AUGUST29, 2016 • T H I S D AY

NEWS

No Legal Barrier to Electronic Voting, Says INEC Onyebuchi Ezigbo in Abuja The Independent National Electoral Commission (INEC) yesterday said every legal inhibition on the use of electronic voting in the country had been abrogated.

The commission said the amendment of Section 52 of Electoral Act done just before President Goodluck Jonathan left office in 2015 had given it powers to determine what form of voting it should apply during elections, including the adoption of electronic means of voting.

The introduction of the use of Card Reader device during the 2015 general election sparked agitations from several stakeholders, especially politicians and political parties who accused INEC of acting outside the provisions of the law.

But INEC’s Deputy Director in-charge of Voter Education and Publicity, Mr. Nick Dazang, who spoke to THISDAY yesterday

on telephone, said though the commission now has the powers to introduce any innovation that can improve voting process, any such initiatives still has to be appropriated for and accepted by stakeholders for it to become operational.

“The law has been amended, section 52 of the Electoral Act has been amended to provide for the INEC to conduct the election in a manner as determined by it. This amendment now gives INEC the latitude to determine how it wants voting to take place,” he said.

He said: “Initially Section 52 of the Electoral Act says that electronic voting is prohibited but shortly before President Goodluck Jonathan left office in 2015, some parts of the Electoral Act were amended including Section 52 and the amended version states that voting shall now be as determined by INEC. So it is now left for the commission to determine when and how it is going to introduce

the electronic voting.”

Dazang explained that the commission is always ready to carry members of the public and key stakeholders along in any initiative it plans to adopt in order to improve the country’s electoral system.

Regarding the introduction of electronic voting, Dazang said there was still a long way to go both in terms of acceptability and availability of funds to carry out the project.

“But I suspect that it will not automatically be introduced just because the commission has been given that latitude. There must be some pilot exercise and INEC may also need to carry out some test-run to ensure that it is in a good position to adopt electronic voting. “ Also, there must be budgetary provisions, for instance, if you want to use electronic voting machines,

you must procure them and the items must be provided for in the budget . But before we even reach there, we must also do some pilot scheme, we have to test such device ahead of time. Get the buy-in of stakeholders before it can be deployed.

Speaking on the need to fill the existing vacancies in the INEC’s board, Dazang said though it is necessary for the commission to operate with a full compliment of the National Commissioners, and Resident Electoral Commissioners, their absence is not having any negative impact on the conduct of affairs of the electoral body.

He also said the non-appointment of the outstanding commissioners has nothing to do with the spate of inconclusive elections being witnessed in recent times.

“Yes we do not have the compliment of all the national

commissioners and the 21 resident electoral commissioners whose tenures have elapsed.

INEC has made representations to the president to nominate and appoint the outstanding national commissioners and resident electoral commissioners.

“But in spite of the lacuna that exists, it has not affected the conduct of our elections or our operations in any way, in the sense that all the elections that were conducted since November, have always be conducted by a resident electoral commissioner and he has always been supported either by other resident electoral commissioners or by administrative secretaries drawn from some of the states.

“Some of these administrative secretaries have conducted more three or four elections before now so they have the requisite corporate electoral experience to

conduct elections. And fourthly the lacuna in the constitution of the INEC board has nothing to do with the inconclusive elections in the country, because like we have always said it is true that 99 per cent of the inconclusive elections in the country, since November, 2015 to the present date, have been caused by violence.

“If you look at section 26 of the Electoral Act as amended, it says wherever there is violence in the conduct of elections, the elections shall be cancelled in the polling units where the violence took place.

“Also if you look at section 53 of the Electoral Act, it says that where there is over-voting, that is where the total number of votes cast in an election is in excess of the total number ofaccredited voters, then the election in the polling unit shall be declared null and void,” he said.

Rainfall: Lagos Allays Fears of Residents, Appeals for Calm The Lagos State Government has allayed the fears of residents over the heavy rainfall witnessed in the state yesterday, saying necessary steps had been taken to avert any incidence of flood disaster in the state.

The state Commissioner for the Environment, Dr. Babatunde Adejare, in a statement said the state government had in recent times carried out intensive tour of some flood prone communities in the state to clear up blocked drainages and canals.

The commissioner wondered why any right thinking person would be dumping refuse on water courses and drainages created for free flow of storm water, saying the numerous campaigns against such practice was for the interest of the residents.

“Canal is a storm water channel for the conveyance of storm runoffs, they are God’s natural protection for holding water during massive flood and it is not a place for anybody to build a house or dump refuse.

Those in the habit of doing such must stop henceforth,” Adejare said.

Allaying the fears of teeming Lagosians apprehensive of the rain, the commissioner said indiscriminate dumping of refuse in the gutters had caused a lot of environmental disasters, warning that the government would no longer tolerate the building of illegal structures along channel right of ways in the state.

To this end, he said the government had since begun demolishing illegal structures and shanties erected on the drains especially in flood prone areas.

Adejare, however, urged residents living on wetlands and flood prone areas to be cautious and careful, urging them to limit their movement if possible and to President Muhammadu Buhari (left), with former President Olusegun Obasanjo at the sixth Tokyo International Conference on African Development move to higher ground if need be. (TICAD) inNairobi,Kenya...yesterday He explained that it is their responsibility as a government to protect lives and property, appealing for the cooperation of all Lagosians in their quest to avert any flood mishap in the state.

DISCUSSING NIGERIA

Abia: Another PDP Aspirant Pushes to Replace Ikpeazu

Lagos Govt to Take Custody of Abused Toddler Chiemelie Ezeobi Baring any unforeseen circumstances, the Lagos State Government is ready to take custody of a five-year-old girl, who was abused and battered by her father, Sukurat Idowu, at their Ikotun residence.

Confirming this, the state Police spokesperson, Dolapo Badmos, said already the state government had indicated interest to take over the battered child, who is currently receiving treatment at one of the state hospitals.

She said: “The Lagos State government through its domestic and sexual response team through ministry of youth and social development has shown interest in taking over the child.”

The command had arrested the suspect after he brutalised, battered and branded the little

girl with hot iron.

Idowu, a 46-years-old and resident of 8, Kayode Toyoso Street, off Liasu Road in Ikotun was nabbed after his neighbour reported a case of battery of the toddler to the police.

The suspect allegedly burnt the child with hot iron on her face and private part because she slipped and fell inside a gutter.

It was gathered that the suspect gave the toddler waste to pour into the latrine but the child slipped on her way and fell in a gutter.

Angered by the development, the man was said to have beaten the girl mercilessly before burning her with hot iron.

It was learnt that the girl’s mother has been separated from her abusive father for over two years and efforts were on to trace the woman.

Onyebuchi Ezigbo in Abuja

One of the Peoples Democratic Party (PDP) aspirants in the 2015 governorship primary election in Abia State, Mr. Friday Nwosu, has dismissed the legal challenge initiated by Dr. Uche Ogah seeking to replace the state Governor, Okezie Ikpeazu, saying the duo were not qualified to be governor.

Nwosu said contrary to claims

by Ogah that he is the rightful replacement of Ikpeazu, he is actually the person that came second in the December 18, 2014 PDP governorship primary.

Nwosu, also claimed that he was the first to blow the whistle over the Abia governor’s alleged tax evasion, adding that while Ikpeazu contested with questionable tax papers, Ogah, participated in the primary election but withdrew midway, alleging irregularities, a development, he said, made him as the only qualified candidate the party and so should be declared winner.

He said he had since instituted legal suits, one of which is seeking the disqualification of Ikpeazu

and the other asking that Ogah, who was ordered by the Federal High Court in Abuja to be given Certificate of Return by the Independent National Electoral Commission (INEC) be either made governor or recognised as candidate of the party given that he withdrew from the contest, alleging irregularities.

But he alleged that some powerful forces from the state who knew the strength and merit of his case in courts were working to frustrate him by ensuring his cases were not heard.

Addressing journalists in Abuja at the weekend, the legal practitioner frowned at what he called “expeditious treatment” of Ogah’s case against Ikpeazu, leaving his case which he said was instituted before that of Ogah.

He called on the President of the Appeal Court to immediately constitute an appeal panel to hear his appeal case.

Nwosu said: “What happened was that on December 8, 2014, at Umuahia Central Stadium in Abia State, the PDP conducted its governorship primary election, and

a lot of people took different views of that election.

“The governorship election was zoned to Abia South senatorial zone in compliance with what Abia people called Abia Chatter of Equity, where political positions in the state are zoned to the comprising areas.

“When the election came up, seven aspirants came out from Abia South senatorial zone including my humble self. One person, in defiance of the party’s zoning policy, Dr. Uche Chukwu Ogah, who aspired from Abia North senatorial zone contested.

“When the election was conducted, Ogah had a very different view from the view of the party. I won’t be too free to speak because of the pendency of this matter in court.

“But it is enough for me to say that Ogah wrote a petition to the party complaining about a lot of things among which were that PDP delegates who were supposed to vote in that election were locked up somewhere by the then governor of the state, Chief Theodore Orji, now a senator.

He said the real PDP delegates

were locked up somewhere, detained somewhere while the party imported several persons from neighbouring states who were not even PDP people into the Umuahia Central Stadium who voted without accreditation.

“I also wrote a letter to INEC to that effect that they have obligation to look at the documents submitted to them and crosscheck it with the position of the law. That now that my candidate has submitted documents that cannot pass the scrutiny of the law, that they should advise my party, the PDP to withdraw him and bring a qualified person, that was my letter to INEC.” He said he was worried that no panel had been set up to superintendent over his case. ‘”Well, my worry now is that some people, powerful people somewhere are sitting on my appeal. The appeal that was contemptuous with the appeal of Ogah has not been listed for hearing, no panel has been set up to hear that appeal while a panel was set up promptly to hear Ogah’s appeal,’’ he said.

T H I S D AY MONDAY AUGUST 29, 2016

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T H I S D AY • MONDAY, AUGUST 29, 2016

COMMENT

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

THE COST OF POOR SANITATION

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Innovation and partnership are critical to delivering sustainable sanitation to the poorest communities, writes Kinya Seto

frica is a continent of astonishing potential. But if it is to build the future its citizens deserve, we have to see increased effort to remove the barriers holding it back. None is greater than poor sanitation - a shadow hanging over the lives and prospects of hundreds of millions of people on the continent and across the world.

Nearly one billion people globally are forced to defecate in the open. As many again have to live with inadequate sanitation. Both lead to the contamination of water and food and the spread of disease. The costs – human and economic – are huge which is why it is so disappointing that the Millennium Development Goal on sanitation was the one furthest from being achieved.

The impact on health of this failure is enormous. Diarrheal diseases, caused overwhelmingly by poor sanitation and unsafe water, remains one of the top 10 causes of death worldwide according to the WHO, killing 1.5 million people in 2012.

But the damage from a lack of sanitation goes far beyond health. The lack of toilets puts the personal safety of girls and women at risk. It’s one of the major reasons why so many girls drop out of school, robbing them of an education and their communities of their talents.

It’s not just a human tragedy but a huge economic burden on already hard-pressed countries. New research prepared

by LIXIL and Oxford Economics has put the annual cost of poor sanitation for low and middle income countries at $222.9 billion. These cumulative costs include those from early loss of life, providing health care and the impact on productivity of sickness.

It is the largest countries like India, the research shows, which shoulder the highest national cost burden. But if you look at these costs nation-by nation as a share of GDP to work out their impact on a society, then countries from sub-Saharan Africa make up half the top 10. In Niger, poor sanitation costs 2.7% of GDP and the figure is nearly one per cent across the continent as a whole. Africa simply can’t afford this loss.

Even more worrying is that the research shows these annual costs for Africa have risen by 24.5% in the last five years and now stand at over $19 billion. It also underlines the terrible toll poor sanitation is taking across the continent by revealing that premature deaths account for 75% of these

THE LACK OF TOILETS PUTS THE PERSONAL SAFETY OF GIRLS AND WOMEN AT RISK. IT’S ONE OF THE MAJOR REASONS WHY SO MANY GIRLS DROP OUT OF SCHOOL, ROBBING THEM OF AN EDUCATION AND THEIR COMMUNITIES OF THEIR TALENTS

total costs in Africa compared to just 55% globally.

This is why sanitation and hygiene must again figure high on the agenda [this week] as Japanese and African heads of state gather in Nairobi for the Tokyo International Conference On African Development, and in Stockholm as businesses, political leaders and others gather for World Water Week.

This complex challenge is made more difficult because sanitation solutions used in developed world cannot be transplanted to the slums or rural areas of Africa. The infrastructure is too costly to build and maintain and too wasteful of resources. Water across many parts of the continent, for example, is already scarce and becoming scarcer because of climate change.

It is not all bleak news. Not long ago Bill Gates rightly said not many of the smartest people were involved in finding sanitation solutions for those in low income countries.

That’s no longer the case, thanks in part to the role he has played in pushing it up the global agenda.

I am proud that LIXIL is bringing all its experience as a world-leader in water technology to help find solutions. With a wide variety of partners, we are developing affordable and effective solutions which will meet the needs of poorest communities.

We introduced, for example, the cost effective and hygienic Safe Toilet (SaTo) products in 2013 and over one million have now been installed in Africa, Asia and the Caribbean for as little as $2 dollars a unit. They are helping transform sanitation and such is the demand and need, we aim to have installed 20 million by 2020.

Considerable progress has been made in recent years across the industry in recognising the challenge. But there is no time to waste. Every year the cost in human misery and lost prosperity keeps rising. Overcoming this challenge requires even greater effort and co-operation from governments, businesses, and civil society.

Governments must commit to national sanitation strategy with stretching but achievable targets backed by increased funding – public, private and a mix of both. National efforts must also include a new emphasis on education so the citizen understands the need to use and look after sanitation facilities when they are provided.

Seto is President & CEO, LIXIL Group Corporation, a Japanese organisation with experience of tackling poor sanitation

EL- RUFAI ON INTEREST RATES

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Boniface Chizea argues interest rates is the only weapon the central bank has to maintain price and exchange rate stability

asir el-Rufai, the Governor of Kaduna State, is someone who has been around for some time and has occupied very significant positions in this country - from being the pioneer Director General of the Bureau for Public Enterprises to being the Minister of the Federal Capital Territory and now the governor of Kaduna State. He is a brilliant man and it is open secret that he has the right connections in the present administration in the country.

He is also a prolific writer and eloquent speaker. I have read his seminal book, “The Reluctant Civil Servant”. I have always known and admired the governor from a distance even though in the 1980s our names both graced one of the dominant publications of the time, Business Magazine, published by iconic journalist, Ted Iwere, as members of the editorial board. But I cannot now remember if an editorial board meeting was ever convened and therefore if we ever met.

The governor, speaking recently at a roundtable discussion organised by Women in Business, was reported to have observed that the Central Bank should be held accountable for massive job losses in the country due to the prevailing high interest rate environment which he rightly observed is not conducive for real sector investments. He said those who engaged mainly in trading, drug trafficking or such related businesses with little value addition to the economy could afford to pay interest rates at over 20 per cent and still remain in business. He said he did not agree with the argument concerning the relationship between inflation and interest rate which holds that for real returns the interest rate must be above the rate of inflation, citing

the example of Britain where he claimed that inflation was not one or two per cent.

It is of the order of about seven to eight per cent and yet lending rate is not more than two per cent. And he then dropped the bombshell that the central bank risked losing its authority to continue to determine the leading indicator on the level of interest rate in the economy if it did not move quickly to cause a reduction on the level of prevailing interest rates, threatening that in the circumstance ‘they’ would take over and legislate the level of interest rate in the economy. It is on record that this was not the first time this opinion has been canvassed by the governor. I most certainly recall he had expressed such views in the past though I cannot now remember the exact occasion. And this is where he lost me!

You cannot legislate regarding the base reference interest rate in the economy. It is not a law to be enacted and observed by all concerned but an indicator of the macro-economic conditions in a country and for most other central banks in the world interest rates is the only weapon they have for the maintenance of price and exchange rate stability, a core mandate of the central bank anywhere. The use of reserve ratios to regulate liquidity in the economy is not an instrument in common use in the advanced countries of the world.

Therefore if you take away the authority of the central bank to determine the base reference interest in an economy you have to all intents and purposes taken away the core reason for the existence of a central bank. The other roles played by the central bank such as the issuance of legal tender currency, banker and adviser to the government, maintenance of the external value of

the national currency and in our particular situation its development functions are ancillary to the core mandate of the central bank which is maintenance of price and exchange rate stability i.e. the level of inflation in the economy is a feat which the central bank is able to discharge based on the extent of collaboration with the fiscal authority and therefore the convergence of monetary and fiscal policies. It is therefore not conceivable that the central bank is able to maintain price stability against the background of an expansionary fiscal policy. But what is really important for any economy at any particular point in time is that there must be convergence of the fiscal and monetary policies.

Supposing for the sake argument the Nigeria government decides tomorrow that in order to promote badly needed investments in the real sectors of small and medium scale industries, agriculture, mining, manufacturing and general investments that the rate of borrowing should not be more than five per cent; how is it going to attract the liquidity to do such lending for the economy at large?

You can only be in position to regulate interest rates, as the central bank had done lately for targeted sectorial lending. And so you find that there are funds which are still in existence today in the country for lending at single digit interest rates to the small and medium scale enterprises, power sector, for agriculture, for the aviation industry, etc., which the central bank, in order not to undermine its operational modalities, had made available to customers using the developments banks in the country, mainly the Bank of Industries and the Bank of Agriculture and Rural Development. It remains an incontrovert-

ible fact that but for such targeted lending that some sectors of the economy such as aviation could have been dead and long forgotten today. Such targeted funds which align with the mandate of the central bank to discharge development obligations in the country are often underutilised as prospective borrowers are challenged to meet the conditionality relating to having access to such funds as the central bank has a clear responsibility to lend such funds with a definite prospect for their repayment. But it is not realistic to expect the banks to offer this sort of subsidy by lending at rates that are clearly not remunerative.

The linkage between the prevalent rate of inflation and the interest rate is not rocket science. If inflation is as it is in the country today at 16.5 per cent and one places his money with a bank at 14 per cent for instance the depositor ends up paying what is designated as inflation tax of 2.5 per cent i.e. his money losses value to that extent because probably he was not well advised or maybe he did not know any better! But it is a fact that most bank depositors particularly the holders of savings account who are more concerned with the guarantee that they will be paid their money as at when they require it could not be bothered with this line of reasoning but your corporate treasurer who deals in large sums of money and plays the time deposit market can never be counted amongst the ignorant in this regard and would most certainly not be interested under such conditions.

It might be necessary to undertake a basic review of what goes into the determination of the interest rates which banks charge their customers.

Dr. Chizea is a management consultant

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T H I S D AY • MONDAY, AUGUST 29, 2016

EDITORIAL THE IMMIGRATION EMPLOYMENT SCANDAL It is not right to subject the 2000 employees to another test

T

he decision by the Nigeria Immigration Service (NIS) to subject 2,000 of its employees to another screening exercise is a continuation of the scandal that has for more than two years dogged the exercise.

The affected persons were employed in 2015 by a presidential committee set up by former President Goodluck Jonathan, following the tragic incident that marred the March 2014 recruitment exercise, where several candidates died. Unfortunately, the new recruits got caught in the crossfire of petty politics when they were initially asked to go by the current administration which would later set other preconditions for their absorption, following public outcry. This is despite the fact that they were employed after a transparent and competitive process.

Justifying the proposed fresh screening exercise, the NIS Comptroller-General, Mr. Muhammed Babandede said the “2000 dispersed officers” were expected to go through “necessary security clearance, undergo a drug-test, certificate verification as well as THESE ARE PEOPLE the implementation of WHO HAVE RECEIVED the civil defence, fire TRAINING, CARRIED service, immigration, OUT THE NECESSARY and prisons service DOCUMENTATIONS board (CDFIPB) AND ISSUED SERVICE policy on age-onNUMBERS. WE WANT rank”. Babandede, TO MAKE IT CLEAR TO who was the Deputy THE NIS AUTHORITIES Comptroller-General AND THE MINISTRY of the NIS when the OF INTERIOR THAT exercise was carried THESE ARE NOT FRESH out in 2015, said APPLICANTS; THEY ARE those who recruited EMPLOYEES OF THE NIS the young men and women went beyond the instruction of the former president, adding that those who committed the offence had been punished.

Letters to the Editor

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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

Notwithstanding Babandede’s efforts at rubbishing the exercise that produced the 2,000 dispersed recruits, we believe the process was transparent enough and it was indeed on merit, following laid down guidelines. And based on the outcome of that process, we also believe that, all factors considered, the recruits were the best among the hundreds of thousands that applied at the time.

Therefore, it will be unjust to subject them to another screening exercise after they had gone through a laborious recruitment process which included writing computer-based tests, interviews and screenings. It is even more irresponsible that the federal government would attempt to cynically do away with these young men and women who had undertaken a three-month training in parade drills, paramilitary ethics, immigration manual, weapons handling (G3, AK47, rifles, etc.) and over a dozen courses relevant to the NIS. We note particularly that the House of Representatives had on April 12, 2016, passed a resolution, advising the Ministry of Interior and the NIS to reabsorb the aggrieved recruits after a dispassionate review of their case.

Rather than do that, the NIS through its circular dated August 15, 2016, rolled out new stringent criteria for the re-screening of the young men and women. To show the level of insensitivity, they were even described as “fresh applicants”. Yet, these are people who have received training, carried out the necessary documentations and issued service numbers. We want to make it clear to the NIS authorities and the Ministry of Interior that these are not fresh applicants; they are employees of the NIS who deserve justice.

The “age- on- rank” policy (placing of age restrictions/ ceilings for ranks within the service), which the NIS is touting should not apply to these people. This is because the policy was first published on May 25, 2016 by the NIS board, a year after their employment. Even at that, the memorandum dated June 13, 2016, specifically stated that the policy was meant only for new intakes into the service (after its enactment). And it cannot be applied retroactively for the dispersed officers.

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.

OGUN AND THE GO GREEN PROJECT

frica-the continent with the richest natural resources and the youngest population on the planet- faces serious development challenges. The environment, probably the most important among the challenges, is linked to issues of energy, transport, waste management, climate change, deforestation, soil degradation and decline of biodiversity.

In many areas there are also issues of pollution, lack of irrigation and drinking water, and threats of unsustainable urbanisation. This is the more reason the people need to be more focused and sensitive about the environment they live in order not to jeopardise their existence.

The response to all these challenges is “Going Green”, whereby Africa can achieve sustainable development and leapfrog through the right choice and by effectively drawing on its vast resources, including the young and dynamic population which is crucial to the development process.

The Ogun State government under the leadership of Senator Ibikunle Amosun said that his administration would leave behind landmark legacies that would stand the test of time. In his speech three years ago at a two-day workshop organised by the office of the First Lady, Mrs. Olufunso Amosun and Ministry of Environment on Tree Planting

tagged “Ogun State Goes Green,” he said that the policy was to sensitise the people of the state to the values and benefits of planting trees in their environments.

Besides beautifying the environment, trees contribute to reducing the harmful footprint of enterprises by reducing the energy and raw materials consumption, avoiding greenhouse gas emissions, minimising waste and pollution thereby contributing to an improved ecosystem (securing clean water, flood protection and biodiversity).

The first lady said that lack of knowledge and understanding of environmental issues as well as the lack of access to funds to drive environmental initiatives is a huge challenge facing the country, emphasising that the level of environmental awareness is still at its cradle.

In practice, going green means adopting basic principle in our daily lives such as: reducing pollution, conserving resources, conserving energy, rescuing waste production, protecting production, protecting the earth’s ecological balance, recycling what you can, and many others.

The Ogun State government first flagged off the “Going Green” advocacy campaign on April 20, 2013 by going on awareness walk followed by a tree planting exercise. Awareness and enlightenment is key, followed by

advocacy campaigns.

In our collective attempt to provide housing for our shelter, build roads and rail lines; construct sea and airports for ease of transport of goods and services, we cut down trees and destroy forests; we build dams and disrupt waterways, our industries and automobiles emit smoke and multiply the carbon percentage in the atmosphere. But here in Ogun State we take issues of environments protection seriously. It means adjusting policy options and business models, which will lead to higher economic efficiency and corporate responsibilities. With appropriate regulatory environment, companies will pursue profit in more sustainable ways, making environmental and economic benefit equally important.

These important goals will also be achieved by creating green enterprises that tap into new markets with green products and services.

And green jobs, aiming at reaching sustainable levels, have the importance, too, in this process; they contribute to guard against the heavy rainstorms, thunders, natural disasters and human degradation.

While searching for its own development paradigm, Ogun State has to come up with original and innovative approaches, being aware of its potential and limitations, as well as benefitting from several good practice cases and experiences from all corners of the

world.

In view of all this, the state government revisited the issue and revived it by setting up “Green Ogun” project to deliberate and formulate rigid plans that will help to solve problems of illegal parking and high traffic congestion being experiencing along LagosIbadan expressway.

The project was based on the governor’s passion for clean and attractive environment as well as making road setbacks more beneficial to road users and also to effect and mitigate degradation and climate change in our society. People should see these steps as a way of sacrificing the time and others things that might be an inconvenience for them, as the government had promised to upgrade the state’s trailer park to accommodate proper entry and exit in and out of the highways instead of indiscriminate parking of articulated vehicles along the Lagos-Ibadan expressway.

Africa has the chance to avoid certain mistakes committed in the past by the industrialised countries. Ogun State government has come up by taking the bull by the horns in introducing tree planting across the state in order to combat the menace of ecosystem in the country.

Ademola Orunbon, Federal Housing Estate, Olomore, Abeokuta

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MONDAY AUGUST 29, 2016 T H I S D AY

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T H I S D AY • MONDAY, AUGUST 29, 2016

POLITICS

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

T H E M O N D AY D I S C O U R S E

The Killing Sport Continues…

The continuous killings in the country, and in most cases on petty grounds, have reached an appalling level and the authorities must act decisively. Shola Oyeyipo and Segun James write

Enugu State Governor, Ifeanyi Ugwuanyi (third from left) during his visit to the scene of a recent attack by suspected herdsmen on a community in the state

H

e was an “ordinary” advert executive with one of Nigeria’s leading newspapers. On this fateful day, he was called out by some people, whom his wife believed were close friends because he left his dinner after the phone call to attend to them.

There shots rent the air in quick succession before the SUV car that brought his assailants drove away. By the time Ignatius’ wife ran out to see what had happened, her husband was in the pool of his own blood. But before she could call for help and the man was rushed to a nearby clinic, he was pronounced dead on arrival or better still, brought in dead.

Many months after, the murder of the young man has not been solved and his killers unknown. Welcome to Murder Incorporated, Nigeria Limited.

In the last few years, especially since the coming of the Fourth Republic, the nation has witnessed series of unsolved and high profile murder cases. But in the last few months, the situation has become very rife as many Nigerians now wonder what the problem is?

The world over, particularly in more civilised climes and where there is genuine value for human life, there are indexes to measure the safety level of people living specific areas. It was based on such premise that the United States Government in a recent travel warning advice to its citizens, named 20 unsafe states in Nigeria, marked as no-go-areas. The reason was simple – pockets of crimes being carried out by faceless persons that are hardly brought to book.

While it seemed that the US assessment was somewhat negative and unkind to Nigeria, truth is that cities such as Memphis, Tennessee, Little Rock, Arkansas, Baltimore and Maryland in particular have been ranked as violentcrime prone areas and largely contribute to US’ overall crime ratings.

Therefore, while naming Borno, Adamawa, Yobe (no-go areas), Bauchi, Bayelsa, Delta, Edo, Gombe, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Niger, Plateau, Rivers, Sokoto, and Zamfara as unsafe states in Nigeria would ordinarily jeopardise foreign investment drive of any of the state governments, the question is: had Nigeria maintained a reliable assessment mechanism and placed premium on the life

of her citizenry, would anyone make bold to say these states and even some others not listed here were unsafe?

Nigeria is generally blessed as a country with almost zero natural disasters. On the contrary, it is cursed with equal dose of self-inflicted disasters that are either ethno-religious in nature, political or a combination of both.

Aside the unrest in the Niger Delta region of the country, the emergence of the Boko Haram sect, kidnapping and brutal killings, armed robbery, the rampaging herdsmen and bombings across the country have claimed thousands of souls and property worth millions of naira have also been destroyed. There is no gain saying too that the security agents are over-stretched.

Thus, as the attacks continue, in recent times, the inhuman mob killing, otherwise called ‘jungle justice’ is gradually becoming another violence trend across the country.

The ancient city on Kano was thrown into an uneasy calm and fear amongst the Christian community, when on Friday, June 3, 2016, a pastor’s wife, Mrs. Bridget Agbaheme, was killed by a mob alleged to be religious extremists, who accused her of defaming the Islam. The late mother of one was married to Pastor Mike Agbaheme, a senior pastor

In addressing the cases of violence, therefore, government must, as a matter of urgent national concern, pay attention to some isolated cases that have inflicted excruciating pains on the families of victims of various attacks, most of whom are unable to secure justice for their slain loved ones

with Deeper Life Bible Church in the state.

The Chairman of the Igbo Community Association in the area, Chief Eni Michael was unhappy about the incident and described the killing as barbaric and “most painful to every Igbo man and woman in the state.

We are not happy at all. A human being is a human being, no matter his tribe or state of origin. Her death is a challenge; we must make sure it does not happen again. And that will start with making sure that those behind this murder do not go free.”

While the air was yet to clear over Agbaheme’s killing, came the story of a 42year old mother of seven and an assistant pastor with the Redeemed Christian Church of God (RCCG), Mrs. Eunice Elisha, who was murdered in Abuja on Saturday, July 9, 2016, while preaching around Gbazango-West area of Kubwa in the Bwari area council of the Federal Capital Territory (FCT).

Eunice’s husband, Mr. Olawale Elisha, said his wife went out to preach in the neighbourhood in her usual practice at about 5am on the fateful day before they heard the report of her murder. She was suspected to have been murdered by religion fanatics, who were uncomfortable with her early morning evangelism.

If the two incidents in Kano and Abuja were considered sheer co-incidences, the Monday, August 22 attack in Zamfara State, where no fewer than eight persons were killed in TalataMafara community, following the violence that erupted over alleged blasphemy by a student of the Abdu Gusau Polytechnic, TalataMafara, would make observers ponder if this was not another threat to national unity and collective peace.

Those killed in the Zamfara attack were said to have been murdered when an angry mob set fire on the house of a man, by name Tajudeen, who tried to rescue a student, alleged to have made the blasphemous statement against Islam and Prophet Muhammad and was consequently attacked by a mob.

Though Governor Abdulaziz Yari of Zamfara State has explained that the murder of the eight persons was caused by false alarm, explaining that those killed in the attack were Muslims.

But the question is: does anyone reserve the right to take another’s life at will and why are the perpetrators not apprehended and

brought to book?

Though it is possible to attribute the development in some parts of the North to religious fanatics, which could be addressed, not many can boast to know the reason there are so many violent killings in Rivers State, where news of killings is becoming a daily occurrence. Some attribute the scenario to political division, others say it is cult-related violence but at a closer look, the reality is that cult activities have been infused into politics, thereby escalating the violent attacks against opposing camps and increasing fatality figures.

In what seems like an insatiable thirst for blood, on Wednesday, August 24, gunmen numbering about 10 reportedly stormed the busy town of Obiagu, Enugu State, where they shot a person identified as Ayaka dead.

It took the swift intervention of men of the Nigerian Police to engage the hoodlums in gun battle that resulted in the killing of one of the AK-47 wielding criminals and the apprehension of two others. If without the timely intervention of the police, probability is high that many more people would have lost their lives.

Obviously irked by the spate of violence in Rivers State, President Muhammadu Buhari, in faraway Malabo, Equatorial Guinea, in a statement by his media aide, Mr. Femi Adesina, said: “The killing of people over political differences was primitive, barbaric and unacceptable”, stressing that “We will deal decisively with all sponsors of violence. I have given the security services clear directives in this regard. We will show that violence in any form will no longer be tolerated before, during or after elections.”

On the other hand, the Rivers State Governor, Nyesom Wike has persistently dismissed claims that killings in the state have been politically motivated and targeted at members of the All Progressives Congress (APC). He attributed the violence in state to clashes of rival cult groups fighting for supremacy.

But while the Buhari-led administration hopes to address the problem of escalating violent crimes in the country, the Boko Haram ravaged states of Borno, Yobe and Adamawa remain a talking point until genuine peace returns there, because despite the victory of the military against the insurgents, they are still

CONT’D ON NEXT PAGE

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T H I S D AY • MONDAY, AUGUST 29, 2016

POLITICS/ THE MONDAY DISCOURSE THE KILLING SPORT CONTINUES… Such pockets of mindless killings abound all over Nigeria and where no concrete actions are taken to ensure that those behind these premeditated but isolated killings are brought to book and serve as deterrents, there is the tendency that those who gladly carry out the killings will continue to prowl the streets and have their ways with the trending killing sport wreaking havocs. Even before leaving office as president, Dr. Goodluck Jonathan put the number of people killed by the Boko Haram at a staggering 13,000 since the beginning of insurgency in 2009.

In the Amnesty International estimation, at least 1,600 people have been killed by the sect since Buhari assumed office on May 29, 2015, which shows that every two hours, one Nigerian died as a result of Boko Haram attack or suicide bombing.

In addressing the cases of violence, therefore, government must, as a matter of urgent national concern, pay attention to some isolated cases that have inflicted excruciating pains on the families of victims of various attacks, most of whom are unable to secure justice for their slain loved ones.

For instance, it was a sad story for the family of a young female National Youth Service Corps (NYSC) member, Omolola Abogunrin, as she was allegedly raped and murdered on Sunday, October 4, 2015 – exactly two weeks to her wedding, by yet-to-be identified men, in Ibadan, the capital of Oyo State.

Her wedding was already slated for Saturday, October 17, the day she would have turned 29. The Polytechnic Ibadan graduate was reportedly murdered in the premises of an agriculture research institute after she was sexually defiled.

It was a similar report on May 23, 2016, when another female NYSC member, Yetunde Shukurat was allegedly raped by one 51 year old Abdullahi Tanko, who had been arraigned before a Magistrate Court presided over by Magistrate K. A. Yahyah. The police prosecutor, Inspector Matthew Ologbon told the Court that they found the late Corps member in a pool of her blood at Simeon Okedi Street, GRA, Ilorin, the Kwara State capital.

Such pockets of mindless killings abound all over Nigeria and where no concrete actions are taken to ensure that those behind these premeditated but isolated killings are brought to book and serve as deterrents, there is the tendency that those who gladly carry out the killings will continue to prowl the streets and have their ways with the trending killing sport.

Also, in most of the states, some locations, like the forests, for instance, are known as primary hideouts for criminals, where they recoil to after going on their killing spree across the country.

Some of the forest that are serving as haven for kidnappers, bandits, cattle rustlers, armed robbers, cultists, and terrorists are spread across

One of the victims of a recent herdsmen attack

Borno, Kaduna, Zamfara, Kebbi, Akwa Ibom, Kano, Bauchi, Niger, Ogun, Rivers and the famous Sambisa forest, known as the hideout of Boko Haram insurgents.

A cross section of Nigerians, who spoke on the trend, admitted that this ordinarily is not the fault of the present government since high profile killings did not just start.

They, however, lamented that hired killing has become more rampant lately than it was in the past. They blamed the porous security architecture on successive federal governments and the economic situation in the country.

Mr. Ibrahim Adewepo cried that Nigeria has no security at all. To him, the nation’s security operatives are contractors, who know next to nothing about what they are doing.

“Tell me, how did those weapons being used

by Boko Haram terrorists and the Niger Delta militants get into the country? The answer is simple: someone somewhere must have compromised. Those weapons are too much that our security operatives cannot tell me that they are not aware. After all, it was not once such weapons were brought in, so it must have been going on regularly with the connivance of the security operatives.”

This position was also supported by Mr. Dennis Pere, an Ijaw man, who does not support the insurgency in the Niger Delta creeks.

Pere insisted that the federal government, especially the President Goodluck Jonathan government sanctioned the importation of arms into the country.

According to him, “the Jonathan government gave arms importation contracts to ex-militants like Tompolo. So, what do you expect? Nobody asked how and from whom he imported the arms. Nobody asked how long Tompolo has

Governor Abdulaziz Yari of Zamfara State explains the killing in the state

had a relationship with the manufacturers.

Can you imagine?

“The federal government awarding a security contract to a man who has led insurrections against the country in the past; a man whose warriors have killed Nigerian soldiers; man who has destroyed several oil installations and equipment. That is the man they awarded security contract. Now, you are talking about murder. Why won’t there be murder?

Mr. Tafal Falowo too blamed politicians for the rising murder cases. He said at every election period, politicians armed their thugs in battles against their opponents, but as soon as the elections are over, they never collected such weapons back or do they care about the nefarious activities the thugs may use the weapons for later?

Mr. Johnson Adeleke also shares this belief.

Adeleke who lives in Lambe, a suburb of Lagos said what may look like murder by hired assassins my indeed be young men, who have access to arms, and because of the economic situation in country, used it to rob and in the process, kill their victims. Yet, many may assume that it is murder.

For Mr. Innocent Okonkwo, because of the high level of greed prevalent in the Nigerian system, a number of people resort to murder to settle scores.

This was supported by Mr. Kubeyinje Benson. He insisted that most of the people who resort to cheap killings are people, who were cultists while in school.

“They keep in touch. Anytime issues crop up, they contact their people who carryout killings. Murder is cheap in Nigeria,” he said.

THE GOVERNOR ONDO NEEDS governorship ambition on the platform of the Peoples Democratic Party (PDP).

Before his resignation, Eyitayo was the Chairman of the Body of Attorney Generals in the 36 states of the federation between 2010 and 2016 and remains the longest serving Attorney General and Justice Commissioner in Ondo State.

Eyitayo’s sterling records in law profession, public service and other capacities in the private and public sector is a testimony to the fact that he is well grounded, well equipped to direct the affairs of Ondo State and take it higher than where Mimiko will stop in 2017.

The wide acceptance, commendation and massive endorsements Eyitayo has received from the monarchs, academia, civil servants, artisans, clergy and youths

among others, since his declaration and commencement of his familiarisation visits across the 18 LGAs of the state is no mean feat.

Eyitayo’s governorship ambition has rekindled hope, allayed the fears of the people over a better successor to build on Mimiko’s legacies and brought people together across political divides as political players to support the best among all.

For 35-years old Segun Akintade, an artisan in Akure, who had made up his mind to take a long break from participating in political and electioneering activities, since his belief in the APC government he vigorously campaigned for in the last presidential election has been futile with the performance of the federal government, the July 2016 declaration

of Eyitayo’s governorship ambition has resonated hope in him.

“I didn’t know him before now. I only hear about him as a calm and humble gentleman,” Akintade said. “But with what I’ve heard and seen about him the day he came to town to declare his ambition at the palace of Deji of Akure, after he resigned, and with reports from his campaign across the state, even if we have to donate to support his campaign. I am ready to support him.”

His experience, modesty, and integrity speak volume of the type of leader Eyitayo will make as Ondo governor. His associates describe him as natural, calm, intelligent, brilliant and down to earth. His friends always say he is relaxed, funny, witty, a great companion and a man of

impeccable character with the love of the people at heart. Mimiko has laid the foundation, the Governor Ondo needs is a consolidator to take the state to the next level and definitely not a bulldozer.

For Eyitayo, who has been an active player and major contributor to the achievements of the Mimiko-led government in the last seven years, consolidating on these achievements and the developmental programmes of Mimiko wouldn’t be a herculean task as it may appear to some ‘newcomers’. This will surely be sweeter in Ondo as a new Sheriff prepares to take the mantle.

•Orodare, a media assistant in the Office of the Chief Press Secretary to Ondo State Governor, wrote from Akure, Ondo State

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POLITICS/ PERSPECTIVE

Wike’s Political Mastery Dahiru Hassan Kera writes that the current over-bearing security misuse in Rivers State against the state government will have consequences It’s apparent that the history of Nigerian’s democracy is coterminous with the history of the nation’s development.

Democracy in Nigeria has its roots traced back to the post-independence era with military interregnum recorded within the long epochs.

In 1966, Sir Ahmadu Bello, Tafawa Balewa and several key politicians that included the ministers from all the regions were assassinated and Major General Aguiyi-Ironsi became the head of military government, being an Igbo extract, he was overthrown by a countercoup that was instigated and staged largely by northernbacked army officers that named Yakubu Gowon as the head of state.

Equally, the Second Republic elections gave politicians a surviving breath amidst distrust, fear, alleged marginalisation, apprehension, and discriminations. In 1979, there was first political merger between the National Party of Nigeria (NPN) and Azikiwe’s Nigerian’s People’s Party (NPP). Though the voting was done along ethnic lines, the Shagari NPN, which had enjoyed supports across the regions, won the presidential election.

Unfortunately, the military in 1983 gave Nigerians a ‘New Year’ gift by cutting short another chance for a sustainable civilian government to thrive by staging a bloodless coup led by Buhari, which overthrew the democratically elected government of Shehu Shagari.

The trend had continued from the Buhari, IBB, Abiola’s annulled June 12, Abacha, Abdulsalami and finally, Obasanjo’s second coming in 1999.

The return of a sustainable democratic government in 1999 was a breakthrough in the history of Nigerian politics, where for the first time, the country witnessed an uninterrupted and sustainable democratic regimes spanning for over 16 years to date.

Wike

Therefore, the efforts of the famous G9, the heroes of democracy must be acknowledged. Dr Sule Lamido, Dr Iyorchia Ayu, Malam Adamu Chiroma, Prof. Gerry Gana, Dr Alex Ekwueme, the late Senator Francis Ellah, the late Bola Ige, the late Abubakar Rimi, and the late Solomon Lar, had fought their way to actualise the return of democracy. But, the unfortunate part of the journey is the way and manner the Nigerian democracy been regarded as nascent and budding with a serious threat to its sustainability from today’s power players at the villa.

The whole thing is centered on purposeful leadership as it’s ordained by

God that leadership coexists both in the animal and human kingdoms. While in the jungle, leadership generally belongs to the strong, valiant and courageous animal and those that possess these attributes have the sole aim of protecting the weak of the clan, to feed and train the young while promoting discipline and well-being among the herds.

In the human and the most complex kingdom biologically known, the burden of leadership naturally falls upon a charismatic, selfless and vision-driven individuals, whose power is rooted in the transparent determination to use wisdom and Gods endowed knowledge to design viable policies and strategies geared towards entrenchment of good governance and socio-economic development for the benefits of human followers.

Therefore, leaders could have negative or positive impacts on their followers depending on the way and manner they applied their innate endowments to the ecology. It’s obvious that wicked and roguish disposition produce despots and tyrants while a sensible, compassionate, transparent and judicious inclination yields a charismatic type of leader and proportionately cultivates loyal and loving followers.

In Rivers State, another political hero has emerged. The citizens have tested and witnessed the two sides of the leadership from Rotimi Amaechi’s government to the present Nyesome Wike’s administration.

While the former regime has used the his mandate in a manner that was encapsulated in alleged excesses, the latter has seen a reason to use his mandate to further better the living conditions of the Rivers people.

There have been attempts targeting Governor Wike’s administration and his reputation. The recent invasion of state

by an intimidating security operatives to scuttle the scheduled PDP convention, who blocked the entrances of the proposed venue and the Rivers State Government House to an extent of damaging some government vehicles as well as the deployment of heavy and armed soldiers during the rerun elections in Rivers, have left the people in palpable fear, while undermining the relative peace in the state.

While many political pundits have raised eyebrows over the underlying motives and the abuse of power and laws by security operatives, such stunted political reasoning flies in the face of logic and the realities of the moment because Wike as the governor of the state is the chief security officer of the state and undisputedly, the political leader. It’s surprising that the state was under siege by security operatives without any legal and security demand not to talk about collaborating with the governor.

The present administration has within one year in office striven to achieve a balance in the siting of infrastructure across the state not tilted to favor any person, including himself, and is blind to the blandishments of ethnic, linguistic or political inclination as according to Wike, the whole of Rivers State is his constituency.

As far he is concerned, Rivers State is one united and indivisible entity that cannot be dismembered to satisfy the cravings of selfish, self-centered and self-seeking cabals bent on subjugating and enslaving the people for their own self-perpetuating and self-aggrandizing ends. Therefore, those behind the overbearing security interference in Rivers politics should know that their actions are detrimental to democratic sustainability and Wike is equal to the task.

•Kera wrote from Abuja

The Governor Ondo Needs Governorship candidate of the Peoples Democratic Party in Ondo State, Mr. Eyitayo Jegede is the most prepared for the job, reckons Michael Orodare

“I

have decided to see things for myself in Ondo State. The concretisation efforts of the state governor and what we saw in the state are in conformity with the objectives of the CNPP. One of the ways we will do it is to tell Nigerians that what we have witnessed in Ondo State is an encouragement and that the projects here are worthy of emulation by other state governors.

“I’m advising the current governors to visit one another and learn from one another. If they do that, particularly learning from Ondo State, it would enable them to perform better. I hope they would listen to this piece of advice.”

Those were the words of former Governor of old Kaduna State and Chairman of the Conference of Nigerian Political Parties (CNPP), Alhaji Balarabe Musa, after a tour of Ondo State in July 2016.

Without any equivocation, it is an established fact that the Mimiko-led government in Ondo State has blazed the trail and set governance on a pedestal that will serve a template for any government in any part of Africa.

Before Mimiko came into office in 2009, Ondo State had the worst infant and maternal mortality rate in South-west, Nigeria, according to statistics from the World Bank, which prompted the Mimiko-led government to vow that pregnancy must cease being a death sentence in the state.

This led to the conceptualisation of the now globally acclaimed Abiye Safe Motherhood Programme, which has brought profound results for the government and has been recommended as a benchmark for Africa continent by the World Bank.

Also, the education sector in Ondo State

Jegede

like never before has received a great fillip for optimum performance in the last seven years of the Mimiko government.

Aside from building over 50 21st century primary schools across the state codenamed the ‘Caring Heart Mega School’ equipped with modern facilities like internet facility and state of the art computer training center, library and sick bay, primary and secondary schools are also being renovated, learning facilities are regularly supplied to the schools with free school shuttle buses across the 18 local government areas of the state conveying pupils to and from school daily.

The tertiary institutions in the state, which before 2009 were described as glorified secondary schools now stand tall and operate on a higher pedestal among the comity of state-owned tertiary institutions across the country.

Before Mimiko, Akure the capital city, in

the words of Ebonyi State Deputy Governor, Dr. Kelechi Herrick was a “developing rural community”, but the massive infrastructure development in Akure and other cities of Ondo State in the last seven years attracted the attention of the UN-Habitat, which honoured Mimiko with the UN-Habitat scroll of honour for his urban renewal drive, which according to UN “combines physical improvement of the environment with economic empowerment and social transformation of the state.”

The peace and security in Ondo State since 2009 is second to none across the South-west states and this has made Ondo State a better place to work and live. These are just few of the unprecedented legacies Mimiko is bequeathing to the state. In six months’ time, Mimiko will gallantly bow out of office having completed his two terms by February 2017. Who can we trust to take it up from where Mimiko will stop?

This seems to be the question on the lips of Ondo State people as they prepare to go to the polls in November 2016.

At this critical time of decision, when various desperadoes and wolves in sheep skin are gallivanting around the state to cajole and seek the support of innocent electorates, Ondo cannot afford to settle below a leader, who can’t radiate charisma, competence, love for the masses, integrity and calmness.

A worthy successor and consolidator of the laudable legacies of Mimiko can be said to have been found in Eyitayo Olayinka Jegede, a Senior Advocate of Nigeria (SAN) and immediate past Attorney General and Commissioner for Justice of Ondo State, a seasoned technocrat with a blend of political experience.

Born to the family of the late Chief Johnson Bosede Jegede, the Odopetu of Isinkan, in Akure the capital city of

Ondo state, and Mrs Caroline Oluwatola Jegede (nee Asokeji) from Ipele town, in Owo Local Government Area of the state, Eyitayo enjoys integrity and honesty running through his lineage, as his grandfather and father were the treasurer of St. David’s Anglican Church, Ijomu, Akure at different times before their demise.

Eyitayo Jegede’s educational sojourn started at the St. Stephen’s “A” Primary School, Modakeke, Ife in Osun State through Aquinas College Akure and Christ School, Ado Ekiti, and finally berthed at the University of Lagos, where he was the captain of the University Volleyball team and bagged his law degree in 1983 before he was called to bar in 1984. Again, National Youth Service took Eyitayo away from Akure to the then Gongola State (now Adamawa state), where he eventually started his law practice.

He was a counsel with the law firm of Murtala Aminu & Co., Yola for 12 years and practised extensively in the northern part of Nigeria, where he built an enviable legal practice with special interest in litigation, Commercial and Corporate law. In 1996, he established the Law firm Tayo Jegede & Co. with offices in Yola, Adamawa State and Abuja. He served twice as the Chairman of the Nigeria Bar Association in Yola and he became a SAN in 2008.

Just as National Service took him away from Akure, another call to service brought him back home in 2009, when he was appointed the Attorney General and Commissioner for Justice by Governor Mimiko, where he started blazing a trail in public service.

He was re-appointed in 2013, and held the position until his resignation in July 2016, in public interest and in pursuance of his CONT’D ON PREVIOUS PAGE

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MONDAY, AUGUST 29, 2016 • T H I S D AY

FEATURES

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

At Last, Succour for IDPs in Bama Camp The depiction of Bama in Borno State is that of a town where so many have died of starvation and acute malnutrition. This gory tale has brought both national and global attention to the town. Michael Olugbode who visited the town, reports that the situation has drastically improved

The new look Bama camp

W

hen a non-governmental organisation, Medicins Sans Frontiers (MSF) reported a “catastrophic humanitarian emergency” on 22 June 2016 in a camp for refugees fleeing from Boko Haram near the town of Bama, the world could not but shake. The news of the NGO that starvation and illness mainly from malnutrition and diarrhoea have claimed the lives of 188 persons (almost six per day) between 23 May 2016 and 22 June 2016, was pathetic and got every notable humanitarian organisation working to arrest the ugly tide.

When THISDAY visited the camp about two weeks after the MSF report, the situation was pathetic to say the least, the entire camp smelt of death, one have to be very careful not to step on faeces or even get a leg stuck in shallow toilets which were not covered. A large population of sick and malnourished people, both young and old were seen including a large expanse of land where newly dug shallow graves were seen and the shanties which were not fit for human habitation stood sorrowfully.

The general complaint by the displaced persons then was inadequate food provision even as they slept in an environment where disaster was barely waiting to happen. Some of the people seen then were so frail and looked very unkept.

But that seems to be history and there is marked improvements going by the latest happening at the camp, though it seems

relatively overpopulated and the displaced persons may not be looking frail but definitely

There is marked improvements going by the latest happening at the camp, though it seems relatively overpopulated and the displaced persons may not be looking frail but definitely not robust.

But the zinc houses have given way to improved tents, there is no more open defecation as many covered latrines have been built, the water and sanitation situation looked improved as boreholes have been dug, food was seen shared to different households and the Dangote Foundation was around to give the inmates clothes and shoes

not robust. But the zinc houses have given way to improved tents, there is no more open defecation as many covered latrines have been built, the water and sanitation situation looked improved as boreholes have been dug, food was seen shared to different households and the Dangote Foundation was around to give the inmates clothes and shoes.

Also during the visit, thousands of children were seen learning in schools built by United Nations Children’s Emergency Fund (UNICEF).

Most of the kids who had no contact with western education before they got to the camp, were noticed reciting the Nigeria National Anthem and the 26 English alphabets, they even counted number 1 to 50.

According to the people at the camp, the cases of deaths are close to zero and the healthcare of IDPs are taken seriously.

One of the displaced persons at the camp who spoke to THISDAY, Mohammed Ahmadu said: “We thank God for now, the situation in the camp is better than it was before when we first came here. I was part of the camp from beginning and it was difficult but now it is better but it can even be made better.

“We are feeding better than before, at least every month we are given rice and other provision, three households (with an estimate of 30 individuals) are given three bags of rice, one bag of beans, three gallons of palm oil to share.

“The dead are no longer buried within the camp. They are taken outside to be buried and the number of deaths has drastically reduced,” he said.

Perhaps the situation was what the United Nations Assistant Secretary General and regional humanitarian coordinator for the Sahel, Mr. Toby Lanza saw during his visit to Bama when he led a team of UN delegation and officials of the Borno State government to celebrate the 2016 World Humanitarian Day. He admitted that much more needed to be done for displaced persons in the town but that the situation was better than the last time he paid a visit to the town during the first week of April.

He explained that the organisation chose Bama to celebrate the humanitarian day for obvious reasons as there was humanitarian crisis in the town and in order to further draw the attention of the world to the town.

The UN under-Secretary who flew into Bama, a town that was virtually razed down by the insurgents after their occupation, in a helicopter, said: “On August the 19 every year, since 2003 is the day when the United Nations and its partners mark the World Humanitarian Day. “It is the day that in 2003 the UN office in Baghdad in Iraq was attacked by a suicide bomber; we lost 20 of our colleagues in one strike. And I know that you here across the North-east of Nigeria particularly in areas such as Bama have identified with the sufferings of the incident of that nature because of the horrors Boko Haram inflicted on the communities in Borno State.

“So my hierarchy and I decided that for me this year there will be no better place to celebrate the World Humanitarian Day

21

T H I S D AY • MONDAY, AUGUST 29, 2016

FEATURES

Pupils being taught by teachers at the Bama IDP camp

Food items for the IDPs at Bama camp

Governor Kashim Shettima (middle), interacting with the students at the Bama IDP camp than Bama. So I am here with you and I am happy in sharing this moment with you.

“I am delighted to be back, I was here with his Excellency the governor in the first week of April. The Bama I witnessed in April is not the Bama of today. I sense progress; I can see that the army has made Bama more stable and secured. I am happy with what the United Nations and her partners have done a little bit to help.

“But I think we still have quite a road to travel. I am still not satisfied entirely and I

will be calling for more assistance whether in demand for education, whether it is to make sure that all of your sisters and wives can give birth in a clean and safe environment; to make sure that people have roofs over their heads, food in their stomachs or have access to their affairs so that they can help themselves.”

On the past and present Bama, the zonal coordinator of the National Emergency Management Agency (NEMA), Alhaji Mohammed Kanar, said the situation was not as bad as

was reported then. He explained that the agency has been in Bama all the while, he said they started bringing reprieve to the people of Bama after the military regained it from the insurgents, then the people at the camp were between 4,000 to 5,000 people.

He said though the military were responsible for the management of the camp in Bama being one of the 16 satellite camps in the state, the agency in conjunction with the Borno State government ensured that food and every other logistics were provided. He noted that contributions from both NEMA and Borno State government are taken to all the satellite camps, with Bama as no exemption, monthly. He said the situation however reach an emergency level when the military liberated villages around Bama that were controlled by insurgents. “The people who were under the control of insurgency for almost a year were liberated and they found their way to Bama and the numbers of those liberated was growing daily. The problem of malnutrition then was because the people were just liberated from the insurgents and then it would be recalled that all routes to the insurgents enclave have been blocked by the military and that was the genesis of malnutrition. So the problem of malnutrition then was that the people brought by the military from the newly liberated villages were malnourished and because of the concerted efforts by all stakeholders the situation was brought under check.

“The camps have always had enough food but the case was that those malnourished were newly liberated, they were acutely malnourished on arrival and we were able to bring some of them down to Maiduguri to be treated, this people have fully recovered.

We thank God for now, the situation in the camp is better than it was before when we first came here.

I was part of the camp from beginning and it was difficult but now it is better but it can even be made better. We are feeding better than before, at least every month we are given rice and other provision, three households (with an estimate of 30 individuals) are given three bags of rice, one bag of beans, three gallons of palm oil to share We are not likely going to see the problem of malnutrition in Bama or elsewhere again.”

He added that: “The camp in Bama is going to be divided into three because the present one is just too large with over 20,000 people. So as to have proper management of the camp in Bama, we are going to have three camps within the town.”

Definitely things are looking up for the displaced persons in Bama camp, though there is yearning for more.

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T H I S D AY • MONDAY, AUGUST 29, 2016

BUSINESSWORLD NIBOR OVERNIGHT 1-MONTH

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Group Business Editor Chika Amanze-Nwachuku Email chika.amanzenwachukwu@thisdaylive.com 08033294157

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Quick Takes PZ Rewards Winners in Promo

Promoters of Morning Fresh, a liquid soap from PZ Cussons, recently awarded prizes to all the winners in the just concluded Morning Fresh Kitchen Make over Promo which ran from March to May 2016.

First prize winner, Mrs. Mojisola Akinbobola, received a full kitchen makeover which included kitchen appliances from Haier Thermocool worth half a million naira and a Kitchen utensil shopping voucher worth over N200, 000 from Adam & Eve. In her acceptance speech, Mrs. Akinbobola said: “I have never believed in promos, that is why I used my maiden name but from now, I know that promos are real.” She thanked Morning Fresh and promised to go on social media to talk about the brand.

Mrs. Oluwaseun Olaiya, the runner-up won a two-burner Gas Cooker, a double door refrigerator and microwave oven.

Regional draws were held in Abuja, Ibadan and Port Harcourt with the Grand National Final in Lagos. Prizes at these draws included double door refrigerators, Chest Freezers, four burners’ gas cookers, table top cookers, microwave ovens, cutlery sets and many other kitchen utensils and appliances.

GOtv Rebrands, to Mark Anniversary

CONGRATULATIONS

L-R:Branch chairman, the Manufacturers Association of Nigeria (MAN), Oyo State, Mr. Kola Akosile; Manager, Operations, Environment Health and Safety, British America Tobacco Nigeria (BATN), West Africa Area, Mr. Jide King; National President, MAN, Dr. Frank Udemba Jacobs; Oyo State Commissioner for Trade, Investment and Cooperative, Taibat Adeyemi, during the trophy presentation to BATN, winner of MAN’s ‘Best Kept Industrial Premises’ award, at the 33rd annual general meeting of MAN, South West, held at Jogor Centre, Ibadan, Oyo State …recently

Two Months on, Flexible FX Policy Fails to Lift Equities Market Goddy Egene The Nigerian equities market has recorded negative performance two months after the implementation of a flexible foreign exchange (FX) policy by the Central Bank of Nigeria (CBN). This is contrary to expectations that the policy will spur inflow of foreign portfolio and domestic investors and lift the market.

The market has shed N151billion in market capitalisation between June 15 when the policy was announced and last Friday, THISDAY analysis has shown. One of the reasons cited for low portfolio inflow into the market was uncertainty about the nation’s FX policy and the CBN’s capital controls.

CAPITAL MARKET Available data from the NSE revealed that Foreign Portfolio Investment (FPI) accounted for 40.43 per cent (N189.45 billion) of total transactions on the nation’s bourse in the first five months of the year, down from 57.04 per cent (N519.34 billion) during the same period the previous year.

So when the CBN announced a flexible policy, it was highly expected that the market would rebound on positive reactions to the policy by foreign and domestic investors.

Although reactions were positive initially, leading to a rise of 1.12 per cent in the Nigerian Stock Exchange (NSE) All-Share Index (ASI)

from June 20 to 30, it began a down ward trend since July to last Friday. In all, the market has declined by N151 billion in capitalisation, falling from N9.579 trillion pre-flexible policy to N9.428 trillion last Friday.

The ASI has fallen by 1.6 per cent, from 27,891.96 to 27,450.91.

A market analysts, Jude Fejokwu said the market had a transient boost during the last nine trading days of June before returning to a persistent decline after global markets recovered post-Brexit.

Looking at the impact of the policy on the market, analysts at Cordros Capital Limited (CCL), said although the CBN may have responded to the agitations of the FPIs with its decision to lift restrictions on

the local currency, early signs since the kick-off date show that the programme has had no immediate impact on FPI activities in equities.

“FPI consensus is that the Naira is not sufficiently devalued at N282-285/US$.

Overlaying this on reports from the grapevine that the liquidity of the local currency exchange rate is still (indirectly) largely under the control of the apex bank (judging by the relative stability of the NGN) risks Nigeria from being eliminated from the MSCI Frontier Market Index at the next index review in September and further dampens expectations of expansionary Continued on page 24

Maritime Workers Accuse NPA, Terminal Operators of Swindling Govt Eromosele Abiodun Maritime Workers Union of Nigeria (MWUN) has accused the Nigerian Ports Authority (NPA), terminal operators and shipping companies of conniving to deny the federal government of the much needed revenue from the ports through under declaration of tonnages.

President-General of the union, Tony Nted stated this in a chat with journalists in Lagos.

To sustain the revenue leakage, he said the shipping companies and terminal operators have impressed it on NPA to ensure that sacked dockwork-

MARITIME ers, such as Tally Clerks and Onbaord Security men were not recalled in spite of their importance and relevance in the port operations.

He said the absence of Tally Clerks and Onbaord Security men was responsible for the recurrent scourge of tonnage under declaration and its negative impact on the nation’s economy.

According to him, “The leakage of revenue through under declaration of tonnage should be seriously tackled.

In this regard, we reiterate that the Tally Clerks and

Onboard Security Men should be reinstated to continue the critical job of uncovering and discouraging under declaration of tonnage which is often done with unholy collaboration of NPA, shipping companies/agents and terminal operators.

“The government has to take action. Recently, a shipping company under declared goods worth $26 million, we raised this with the NPA nothing was done and this is happening on daily basis.

Tally Clerks are capable of stopping this through their independent physical tallying process. Over 2,000 Tally Clerks are involved. Their

reinstatement now will go a long way in reducing the number of unemployed Nigerians and also reduce the misery of their families.”

He disclosed that no fewer than 20 shipping companies had shut operations in Nigeria due to unfavourable government policies, leading to the retrenchment of over 3000 workers in the last one year.

Nted, lamented that the jobs of over 2000 workers were also on the line and called on President Muhammadu Buhari to intervene to save the sector from imminent collapse.

Continued on page 24

As part of the build up to its fifth anniversary celebration in October, GOtv has unveiled a new package called GOtv Lite as well as a new look, packaged to offer subscribers the best.

The new look of the digital terrestrial pay-TV brand is believed to be more vibrant and captures various emotions which the organisation’s compelling content arouse in its subscribers.

The GOtv Lite package tagged ‘Small Pepper’ is believed to be the most affordable pay-tv package in Nigeria. The new package offers over 20 carefully selected international and local channels and it gives customers the flexibility to choose one of three payment options; N400 monthly, N1050 quarterly or N3100 for one year.

The new offering is said to be only available to existing subscribers and aimed at enabling more TV households access digital television at an affordable price.

The GOtv Lite channel lineup includes: Afro Music Pop, Al Jazeera, e.TV, FAITH, Islam channel, JimJam, AIT, LTV, MITV and ONTV Max. Others are; TVC Entertainment, TVC News Nigeria, Channels, Trybe TV, STV, Wazobia TV, Galaxy TV and NTAi. Subscribers to the GOtv Lite package will also be able to access two audio channels namely, Naija FM and Wazobia FM.

Nutricima Re-launches Olympic Milk

Nutricima Limited a subsidiary of PZ Cussons, has re-launched its premium nutritional milk, Olympic as part of measures to encourage Nigerians to embrace a more active lifestyle. The relaunch will see the brand roll out a new look in coming months along with a new nutrition proposition, ‘Active For Longer’ while still sticking to its promise of quality nutrition and low cholesterol content.

Speaking at a press parley held recently in Lagos to formally announce the relaunch, the Marketing Director, Mr. Kalyan Bandyopadhyay stated that the newly improved Olympic Nutri-Active milk is a demonstration of Nutricima’s commitment to provide consumers with the nutrients required to live a healthy and more active life.

According to him, “So many Nigerians work very hard and are actively engaged in one activity or the other, the new Olympic Nutri-Active is specially formulated to help consumers stay active all day long regardless of the nature of what they are engaged in.

Regal Dry Gin Thrills Consumers

Regal dry gin, a premium gin brand from the stable of Grand Oak Limited thrilled thousands of its consumers at the fourth series of the Afro Beat Party 2016 held at the New Afrika Shrine, Lagos.

The event witnessed huge turnout of patrons as most of the consumers were given opportunities to enjoy the rich taste of Regal dry gin at the revered party.

The programme assumed a dramatic dimension when A-list and upcoming music artists took to the stage for exciting performances to the delight of the crowd that danced and chanted all night.

Speaking on the partnership between Regal dry gin and the Afrobeat party, the company’s representative, Assistant Manager, Mr. Niyi Babatunde, said over the years, Regal dry gin has been successful partnering with the Fela brand and it can be remembered that Regal is the only brand to have organized a show that put FelaKuti and Femi Kuti on the same stage back in the 90’s.

“The reality is that companies will see shrinkage, either from a shareholder perspective or analysts perspective or readers perspective” Glaxosmithkline’s Regional Head for Asia, Middle East & Africa, Mr. Zubair Ahmed

24

T H I S D AY • MONDAY, AUGUST 29, 2016

BUSINESSWORLD TWO MONTHS ON, FLEXIBLE FX POLICY FAILS TO LIFT EQUITIES MARKET

foreign investment flows into Nigeria’s risky assets in the near term,” they said.

The hike in the Monetary Policy Rate to 14 per cent also had a negative impact on the equities market. According to analysts, they expect attractive yields in the fixed income market (as a result of the hike in MPR) to shift investors focus from equities.

“Also, lower oil price and lack of FX liquidity are expected to continue to dampen economic and corporate outlook. We believe that all these factors will weigh on investors’ confidence in the equities market,” they added.

MARITIME WORKERS ACCUSE NPA, TERMINAL OPERATORS OF SWINDLING GOVT

Nted who declined to name the affected shipping companies, said they were verifiable in the ports. He however warned that many more shipping companies were on the verge of folding up and were only doing skeletal services at the moment.

The union demanded among others that: “All access roads to the ports as a matter of urgency should be expanded and rehabilitated to handle cargo traffic in the ports. The traditional rail operations in our seaports should be restored to reduce the pressure on our highways and daily fatal accidents and deaths from containers. Waterways should be developed for delivery of laden containers and heavy equipment through our coastal waters into the hinterland.”

He added: “The tank-farms, which are now dangerously located close to the ports, residential areas and along the expressways and access roads close to the ports should be relocated far away from the seaports to staveoff the perennial gridlocks on the roads. The volume of vehicles imported into Nigeria through Nigerian ports has collapsed to an all-time low, with consequent loss of thousands of jobs in the maritime sector.

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 (AgriBusiness)

NEWS

Seplat MD: Gas Has Potential to Transform Africa Chairman of Seplat Petroleum Development Company, ABC Orjiako has noted that gas has the potential to transform African economies if harnessed properly.

Orjiako made the submission as a panelist at the recently concluded Africa/Singapore Business Forum hosted by the International Enterprise (IE) in Singapore.

Speaking on the theme, “Africa Oil and Gas: Positioning for the future”, which discussed the Africa Oil and Gas narrative from the perspective of a Nigerian Independent, playing in the global equity space, Orjiako and other panellists highlighted the challenges that exist not just in Nigeria but on the entire Continent.

Nigeria being the biggest economy in Africa and the largest oil producer in the continent was an easy reference point for the challenges facing commodities producing countries in Africa and elsewhere in the world. The country is facing not just its toughest foreign exchange volatility and inflation but low oil prices which have now been exacerbated by the loss of millions of barrels to the Niger Delta militancy leading to a huge budget deficit as is the case with other producers.

Orjiako stressed that the country’s current challenges with low oil prices, high exchange rate relative to the dollar and spiralling inflation all signal a wake-up call for Nigeria’s economic diversification.

According to him, “The good news is that Nigeria is taking the right steps in the right direction by the recent subsidy removal and the floating of the Naira.

What is expected is that the right fiscal discipline to channel the associated savings to the real sector, particularly in infrastructure, manufacturing, agriculture will evolve. Gas is at

the center of this transformation because in Africa, the power infrastructure gap is the biggest barrier to real growth. The huge deficiency in power presents a huge investment opportunity with good headroom for returns on investment.”

He noted that Seplat’s leading business growth objective is to consolidate the company’s rapidly growing gas business stating that in the last two years the company has doubled its gas production to 300MMscf/ day, by the commissioning of our 150MMscf/day Modular gas plant in OBEN, with plans underway to increase the processing capacity to 500MMscf/day by end of 2016.

Seplat is currently delivering 30% of gas for power in the Nigerian domestic gas market and is well positioned to increase this exponentially in the coming years with ability to deliver to both the Nigerian market and the West African sub region.

Orjiako asserted that Seplat

is committed to the inevitable transformation waiting to happen in Nigeria and the African continent regardless of the current challenges.

The panellists amongst whom were Mr. Bonang Mohale, Chairman & Vice President, Shell Downstream South Africa (Pty) Limited; Mr. Humphrey Kariuki Ndegwa, Founder, Dalbit Petroleum; Tan Sri Hassan Marican, Chairman, SembCorp Marine looked beyond the challenges to draw attention to the enormous opportunities these challenges present in the Continent, which makes Africa the inevitable investment destination.

The forum while providing a veritable platform to explore Africa-Singapore dialogue on Trade and investment promotion and by extension Africa-ASEAN cooperation at large also witnessed the signing of bilateral air services agreement between Nigeria and Singapore to strengthen their existing bilateral air services and curb double

taxation on investments in both countries. Nigeria’s Minister of State for Aviation Senator Hadi Sirika signed on behalf of Nigeria.

Panelists cited government regulations and legal framework using the Mozambique and Tanzanian examples to highlight key factors inhibiting rapid growth of natural resources that abound in Africa. Other impediments highlighted included challenges around issuing of oil licenses such as in South Africa where Bonang Mohale pointed out that enormous oil and gas resources that would have otherwise be harnessed by International oil companies such as Shell with capacity to make required exploratory investment where locked underground.

It was emphasised that governments do not have the resources and skills to undertake what is required and should proactively let companies with the financial and technical muscle take over this responsibility, so that countries can gain associ-

ated benefits such as revenues from taxation and generation of employment for its citizens and overall economic growth.

Orjiako whose company pioneered assets acquisition from the IOCs in the Niger Delta in 2010, and proceeded to dual listing on the London Stock Exchange and Nigeria Stock Exchange in 2014, making Seplat a global brand and an investment entity in the Africa Oil and Gas industry emphasized that Seplat has built on that acquisition to notch up considerable progress in the areas that differentiate the company in terms of its operational track record, winning host committee engagement strategy, strong Corporate Governance and Best practices.

At production figures of 75kbpd of oil and condensate and 300MMscf/day of gas, Seplat is now the biggest Independent in the Nigerian oil and gas industry and continues to lead the new dawn of the indigenous program in Nigeria.

A NEW OFFERING

Permanent Secretary, Ogun State Ministry of Commerce and Industry, Mrs. Modupe Bosede; Commissioner for Commerce and Industry, Otunba Bimbo Ashiru, Chairman Oak Group ltd, Dr. Lance Musa Elakama and Special Adviser to the Governor on Commerce and Industry, Mrs. Funmi Ajayi during facility tour of the company at Isheri, Ogun State…recently

Intercellular Bounces Back with New Re-invent in Technology, Zinox Boss Tells Lawyers Identity, Launches 4GLTE Targets 10m subscribers in 5yrs

Emma Okonji Intercellular, one of the oldest Code Division Multiple Access (CDMA) operators, also known as fixed wireless operator that had gone under alongside 26 other CDMA operators in the past, has re-launched its telecoms service offering that is completely different from CDMA service offering.

The telecoms company last week re-launched itself into the telecoms space with new brand identity and new service offering, targeting 10 million subscribers in the next five years.

It rebranded from Intercellular to InterC Network, on a 4G LTE network, also known as the fourth generation long term evolution network.

Announcing the new brand identity in Lagos, the Chief Executive Officer of InterC Network, Mr. Emad Sukker said the new company would shift completely from offering CDMA services, while focusing on broadband data services on its 4G LTE platform. He said InterC Network would not be offering voice service in the

meantime, but would rather concentrate on broadband data service only.

Sukker explained that InterC Network would be rolling out services in Port Harcourt, Abuja, and Kaduna, with plans to expand to other cities like Lagos, Ibadan, Benin, Jos, Kano, soonest, before covering the entire country.

The return of Intercellular with a new brand identity of InterC, but with different service offering from CDMA service offering, is an indication that CDMA has no future in the Nigerian telecoms space, according to some of the guests present at the relaunch.

CDMA operators were very profitable in Nigeria before the advent of operators of Global System for Mobile Communications (GSM) in 2001. Shortly after the emergence of GSM operations, the CDMA operations started losing relevance, until all the 26 registered CDMA operators fizzled out of telecoms business. The last operator standing was Visafone that was eventually acquired

by MTN in January 2016.

Emma Okonji

Commending InterC Network for the bold return, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said: “I commend InterC Network not only for coming back to the stage, but also for retaining its initial name, with emphasis on connectivity, because there is power in a name and brand identity. The telecoms market is big for every player to carve a market niche for itself and I salute your courage for focusing on data services, which has turned out to be the new trend in the telecoms sector.”

Announcing the new offering on InterC Network, Sukker said the telecoms company would be offering subscribers free one month data of 50 Gigabyte at first recharge, and a 25 per cent discount on total cost of recharge, at the second recharge.

He said InterC Network would be working with Huawei as its technology partner and IHS as its colocation partner, as well as Yudala and Transium as partners that would help it reach out to large scale customers, while

Chairman of Zinox Group, Leo Stan Ekeh has called on Nigerian lawyers to re-invent in line with current technological realities or face the threat of losing relevance in the practice of the legal profession in Nigeria Ekeh gave the advice at the 2016 annual general conference of the Nigerian Bar Association (NBA), which held in Port Harcourt, Rivers State last week.

While delivering a paper titled: Lawyer and Wealth Creation in the 21st Century Powered by Technology”, Ekeh challenged members of the bar association to wake up to the strong and compelling circumstances necessitating changes in the legal market place and forcing it out of its protective covering.

Noting that the legal profession is one that is averse to change, Ekeh disclosed that the survival of any sector, profession or business organisation is directly dependent on its ability to innovate and align itself with the present digital revolution.

“In our present society, technology has permeated

almost all sectors, industries and several human undertakings. Many sectors have been overtaken by the internet, mobile phone apps and people’s ability to find free information as against situations they used to pay for. Any organisation or sector that refuses to innovate and embrace new technological realities will eventually die.”

Ekeh, who posited that the 21st century is a century for only those who want to be successful, noted that one can alter his destiny and remain a global success. According to him, this is a century of knowledge and style. The Zinox Chairman further affirmed that the revolutions in the field of ICT puts a lot of pressures on the legal profession which makes it imperative for the contemporary lawyer to re-tool in order to remain relevant in the scheme of things.

“The law profession must embrace this change and properly align itself to the benefit maximally from the present digital revolution. In this 21st century, a lawyer’s wealth shall be determined by the application of digital technology to his work.”

25

T H I S D AY • MONDAY, AUGUST 29, 2016

BUSINESSWORLD

MARKET REPORT

Investors Stake N14bn on 1.4bn Shares Amidst Bearish Sentiments Goddy Egene and Nosa Alekhuogie The bulls retreated last week at the stock market, giving way for the bears to take over control of the market.

Consequently, the benchmark Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell by 0.72 per cent to close at 27,450.91 compared with a rise of 1.48 per cent the previous week. Despite the slide in the ASI, value of trading on the Nigerian bourse rose by 6.9 per cent as investors staked N13.839 billion on 1.124 billion shares during the review week, as against N12.94 billion invested in 1.375 billion shares the preceding week.

It was a struggle between the bulls and the bears as they took their turns, sequentially, for five trading sessions. However, the losses eventually outweighed the gains leading to the ASI to close lower at 27,450.91. Similarly, the market capitalisation went down lower at N9.428 trillion.

In line with the bearish trend, four other indices finished lower during the week, while the NSE Main Board, NSE 30, NSE Banking, NSE Insurance, NSE Consumer Goods, NSE Oil and Gas and NSE Pension indices rose by 1.93 per cent,0.33 per cent,0.86 per cent,0.04 per cent, 0.93 per cent, 6.74 per cent and 1.21 per cent respectively.

The NSE ASeM Index closed flat.

The NSE Oil & Gas index advanced the most, rising by 6.7 per cent on the back of gains in Seplat Petroleum Development Company Plc (+14.6 per cent) and Forte Oil Plc (+10.6 per cent). The NSE Banking and the NSE Consumer Goods Indices rose 0.9 per cent apiece, due to gains in Union Bank of Nigeria (+5.1 per cent), Guaranty Trust Bank Plc (+4.1 per cent), UBA (+1.8 per cent), Nigerian Breweries Plc (+1.5 per cent), International Breweries Plc (+7.4 per cent), and Unilever Nigeria Plc (3.0 per cent). Conversely, the NSE Industrial Index depreciated 1.1 per cent account of losses in Dangote Cement Plc(-5.2 per cent).

Daily Performance Summary The stock market had started the week on a bullish note with the ASI advancing 0.6 per cent at the end of the trading session on Monday to close at 27,817.00.. Investors gained N55.5 billion as market capitalisation settled at N9.5 trillion. The bullish performance resulted from gains in blue chip Consumer Goods and Banking stocks – Nigerian Breweries Plc (+1.4 per cent), GTBank (+1.6 per cent), UBA (+5.5 per cent) and Nestle Nigeria Plc (+1.2 per cent). Market activity was mixed as volume traded declined 31.3 per cent and value traded appreciated 2.1 per cent to be e at 216.2 million shares and N2.8 billion respectively.

In terms of sectoral performance, it was broadly bullish as the Banking and Oil & Gas indices gained 1.3 per cent and 1.0 per cent respectively to lead other advancers. The Banking index gained on account of bullish sentiment in Tier-1 banks – GTBank (+1.6 per cent), UBA (+5.5 per cent) and Access Bank Plc(+4.6 per cent) just as the NSE Oil & Gas Index appreciated on the back of bargain hunting in Eterna Plc(+4.8 per cent) and Seplat (+2.1 per cent). Likewise, the Consumer Goods and Insurance indices appreciated 0.9 per cent and 0.1 per cent respectively.

The market slowed down on Tuesday to close flat. The NSE ASI depreciated marginally by 0.01 per cent to close at 27,810.28 points. The

lion shares worth N4.680 billion in 2,689 deals. The third place was occupied by the Conglomerates Industry with a turnover of 42.988 million shares worth N60.763 million in 610 deals.

Trading in the top three equities namely – Guaranty Trust Bank Plc, FBN Holdings Plc and Diamond Bank Plc accounted for 434.979 million shares worth N5.236 billion in 3,490 deals, contributing 38.71 per cent and 37.84 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 16,397 units of Exchange Traded Products (ETPs) valued at N1.961 million executed in 37 deals, compared with a total of 57,828 units valued at N766.162.96 transacted the previous week in 37 deals Similarly, a total of 1,650 units of Federal Government Bonds valued at N1.690 million were traded in 3 deals compared to a total of 3,127 units of Federal Government Bonds valued at N3.057 million transacted in six deals the previous week. depreciation recorded in the share prices of Dangote Cement, UBA, Access Bank, Oando and Cadbury were mainly responsible for the decline in the ASI. The total value of stocks traded on Tuesday was N2.93 billion, up by 3.83 per cent from N2.83 billion recorded the previous day.

Wednesday was positive as the Nigerian bourse rebounded to close 0.3 per cent higher at 27,880.46. Market capitalisation grew by N24.1 billion to settle at N9.6 trillion. The performance was influenced by gains recorded

by Nigerian Breweries Plc (+1.0 per cent),Forte Oil Plc (+5.0 per cent), GTBank (+1.4 per cent) and Dangote Cement (+0.3 per cent).

The bears returned on Thursday pushing down the ASI by 1.80 per cent to close at at 27,379.95 on the back of losses by Dangote Cement Plc, FBH Holding Plc, Zenith Bank Plc , Forte Oil Plc and Dangote Sugar Plc. Although the bulls overthrew the bears on Friday, leading to a positive close, the gain of 0.26 per cent on that last day of trading was not enough to erase losses recorded earlier in the week. As a result, the market closed the week shedding 0.72 per cent.

cent and 55.92 per cent to the total equity turnover volume and value

Market turnover Meanwhile, the Financial Services Industry remained the most traded with 922.145 million shares valued at N7.739 billion traded in 9,612 deals, thus contributing 82.07 per

A.R.M SECURITIES LIMITED - BRD

TOP TEN BROKERS(BY VALUE)

respectively. The Consumer Goods Industry followed with 113.395 mil-

AS AT LAST FRIDAY

BROKER

VALUE

% VALUE

8,819,501,061.24

31.80

3,545,588,479.86

12.78

2,336,807,708.91 1,725,949,831.48

8.42 6.22

VETIVA CAPITAL MANAGEMENT LTD

677,823,185.08

2.44

CHAPEL HILL DENHAM SECURITIES LTD - BRD FORTRESS CAPITAL LIMITED -BRD CARDINALSTONE SECURITIES LIMITED

652,483,292.51 575,406,713.60 510,416,354.60

2.35 2.07 1.84

A.R.M SECURITIES LIMITED - BRD

494,527,886.47

1.78

489,561,461.36 19,828,065,975.11

1.76 71.48

EFCP LIMITED STANBIC IBTC STOCKBROKERS LIMITED RENCAP SECURITIES (NIG) LIMITED CSL STOCKBROKERS LIMITED

APT SECURITIES AND FUNDS - BRD

TOP TEN BROKERS

(BY VOLUME)

BROKER EFCP LIMITED

AS LAST FRIDAY VOLUME %VOLUME 273,052,324

12.15

STANBIC IBTC STOCKBROKERS LIMITED

204,680,031

9.11

CARDINALSTONE SECURITIES LIMITED

133,309,732

5.93

FBN SECURITIES LIMITED

111,628,127

4.97

RENCAP SECURITIES (NIG) LIMITED

107,730,310

4.79

CSL STOCKBROKERS LIMITED

106,077,305

4.72

86,720,911

3.86

CORONATION SECURITIES LIMITED

67,383,409

3.00

APT SECURITIES AND FUNDS - BRD

65,635,111

2.92

MORGAN CAPITAL SECURITIES LIMITED

63,103,923

2.81

1,219,321,183

54.26

Gainers and losers In terms of price movement, 27 equities appreciated in price during the week, higher than 25 equities of the previous week. Twenty-five equities depreciated in price, lower than 39 equities of the previous week, while 128 equities remained unchanged higher than 116 equities recorded in the preceding week.

Seplat led the price gainers for the week with 14.5 per cent, trailed

by Forte Oil Plc with 10.6 per cent.

Trancorp Plc chalked up 10.4 per cent, just as CAP Plc appreciated by 10.2 per cent. Presco Plc and International Breweries Plc rose by 9.5 per cent and 7.4 per cent in that order. Other gainers among the top 10 included: Fidson Healthcare Plc(6.9 per cent), Union Bank of Nigeria Plc( 5.1 per cent); BOC Gases Plc (4.8 per cent) and GTBank Plc (4.1 per cent).

On the contrary, FCMB Group led the price losers with 14.9 per cent, trailed by A.G. Leventis with a decline of 10.1 per cent. Academy Press Plc shed 9.5 per cent just as Skye Bank Plc and Unity Bank Plc went down by 7.8 per cent and 7.6 per cent in that order. Other top price losers were: May & Baker Nigeria Plc (7.3 per cent); Dangote Flour Mills Plc (6.9 per cent); Fidelity Bank Plc (5.8 per cent); Airline Services & Logistics Plc (5.4 per cent) and Champion Breweries Plc (5.4 per cent).

26

T H I S D AY • MONDAY, AUGUST 29, 2016

BUSINESSWORLD

INSIDE BROAD STREET STATUS REPORT

Africa Urged to Prioritise Spending to Meet SDGs Obinna Chima

A view of Lagos financial district

AKINWUNMI IBRAHIM

Investors Find Solace in Fixed Income Market Obinna Chima Following the bearish sentiment that has persisted in the equities market, investors’ interest has turned towards the fixed income market.

But, buying interest in the fixed income securities market has remained on shorter tenor treasury bills instruments given the current attractive yield environment. As a result of this, activities in the longer-dated bond market have remained relatively soft and this persisted last week, according to a report by Afrinvest West Africa Limited.

The Nigerian Stock Exchange (NSE) All-share index and market capitalisation depreciated by 0.72 per cent to close last week at 27,450.91 and N9.428 trillion respectively. Similarly, four other Indices finished lower during the week.

The performance of the stock market was hampered by the ban imposed on nine commercial banks from operating in the forex market by the Central Bank of Nigeria (CBN).

The CBN last Tuesday barred nine banks from participating in the forex market for not remitting a total of $2.334 billion Nigerian National Petroleum Corporation (NNPC)/Nigerian Liquefied Natural Gas (NLNG) Company dollar deposits to the federal government’s Treasury Single Account (TSA). The affected banks were: the United Bank for Africa (UBA) Plc, First Bank of Nigeria (FBN) Ltd, Diamond Bank Plc, Sterling Bank Plc, Skye Bank Plc, Fidelity Bank Plc, Keystone Bank, First City Monument Bank (FCMB) Ltd and Heritage Bank Limited.

But UBA has been re-admitted into the forex market after complying with the directive.

On the other hand, a total of 1,650 units of Federal Government Bonds valued at N1.690 million were traded in three deals last week, according to a report by the NSE. Compared to the preceding Friday, average yields across benchmark instruments declined 0.9 per cent to 15.1 per cent last Monday. Also, on Tuesday, as trading activity remained marginal, average yields across benchmark instruments slid 0.1 per cent to settle at 15 per cent. On Wednesday however, marginal sell pressure drove yields two basis points higher.

Yields on bonds closed flattish last Thursday, but eventually rose to 15.1 per cent on Friday, lower by 0.9 per cent week-on-week, broadly due to the bullish sentiment last Monday.

“We expect investors to trade cautiously in opening trades this week ahead of July 2016 inflation data release,” analysts at Afrinvest stated.

Similarly, the Sub-Saharan sovereign Eurobond space experienced mixed performance during

MARKET INDICATOR the week as yields declined on all the Ghanaian Eurobonds (Ghana 2023, 2026 and 2017 down 0.2% 0.2% and one basis point respectively).

Yields on the Zambian and Senegal sovereign Eurobonds (Zambia 2024, 2022, Senegal 2024 and 2021 down 0.2 per cent, 0.2 per cent, 0.1 per cent and 0.1 per cent respectively) also declined on a week-on-week basis.

On the flip side, yields rose on South African Eurobonds, by an average of 0.3 per cent weekon-week while the Nigerian 2023 Eurobond both rose 0.1 per cent week-on-week.

In the Nigerian corporate Eurobond space, sentiment was bearish performance during the week as yields rose across all instruments save for the Fidelity 2018 Eurobond. This may be linked to profit taking and speculations in the global market about probable hike in Fed Fund rate which spooked sentiment for emergingmarket assets.

some banks are operating accounts either as companies or companies masking themselves as individuals for the purpose of illegally receiving money transfer flows into those accounts for onward disbursements to recipients in Nigeria.

To curb this international fund transfer, the CBN in a circular titled: “Illegal International Money Remittances Through the Banking System,” dated August 25, 2016, and signed by its Acting Director, Trade and Exchange Department, Mr. W.D. Gotring, directed banks to identify and freeze such accounts receiving illicit flows with immediate effects. The banks were also directed to submit the mandate and account details of these accounts held in naira or foreign currency to it for onward reporting to the security agencies.

“The CBN therefore reiterates that deposit money banks have the absolute responsibility to conduct Know Your Customers’ Business (KYCB) checks on all their customers to ensure that they do not transact in illegal/illicit flows,” it added.

Forex Market The naira opened the week stronger at the interbank market, as spot rates strengthened to N308.73/$1 last Monday, from N316.55/$1 the preceding Friday and further appreciated to N305.18/$1 last Tuesday.

The naira however weakened to N316.84/$ on Thursday before eventually settling at N314.95/$1 on Friday following the decision of the CBN to ban nine banks from the interbank market.

However, parallel market rates tumbled 3.6 per cent week-on-week as the greenback exchanged for the naira at N412/$1 last Friday relative to N397/$1 the preceding Friday.

“Overall performance of the domestic currency was pressured by volatility in the currency market which was triggered by the sanction imposed on nine banks by the apex bank,” analysts at Afrinvest stated.

In the futures market, the AUG 24 2016 contract with a notional value of $152.5million at $/N310, matured and was settled on the FMDQ platform on the said maturity date.

This was replaced by the CBN with a new 12-month contract (AUG 16 2017), with value of open contract offered at US$41 billion at N244/US$1.00. In addition, new rates were published for the existing one-month to 11-month contracts.

Analysts anticipate that the foreign exchange market will continue to be pressured in the interim, especially at the parallel market, as liquidity in the official market remains a concern.

The CBN on Friday said it observed that

Money Market System liquidity opened with a balance of N22.3billion last Monday. Thus, Open Buy Back (OBB) and overnight rates settled at 19 per cent and 21.8 per cent respectively on Monday.

Rates declined on Tuesday as OBB fell to 17.5 per cent while overnight rate slid to 18.6 per cent following an improvement in liquidity levels which settled at about N25 billion.

The downtrend in rates lingered into Wednesday, with no major inflow or outflow from the system as OBB and overnight trended lower to 17 per cent and 18.1 per cent.

However on Thursday rates rose, though at tight band, to settle at 16.3 per cent (OBB) and 17.9 per cent for overnight. Consequently, money market rates slid 4.8 per cent (OBB) and 6.7 per cent for overnight week-on-week respectively.

Across the treasury bills term structure, the nine month and 12 month tenors remained the most attractive with rates closing respectively at 17.8 per cent and 17.6 per cent on Friday.

“We expect rates to trend in line with liquidity dynamics in the coming week as interest in treasury bills and OMO instruments currently trading at attractive rates strengthens,” Afrinvest analysts added.

The CBN plans to offer N212.85 billion treasury bills maturing between 91-days and 1-year this week. The central bank said it will sell N45.85 billion worth of the 91-day bills, N62 billion of the 182-day paper and N105 billion of the 1-year debt. Payment for the purchase will be effected on Thursday.

African governments will miss health development goals in the Sustainable Development Goals (SDGs) unless spending prioritises the poorest, most vulnerable groups in their societies.

Investments in the health sector by subSaharan African governments have seen significant improvements in life expectancy and general overall health.

But the 2016 Africa data report by ONE recently showed that Africa’s poorest 20 per cent face the worst health outcomes as governments continue to under-invest in the health sector.

At current public health investment levels, sub-Saharan Africa will not meet key health SDG targets by 2030, the report insisted.

The ONE Campaign’s report stressed that the bad news “is that the region is lagging furthest behind on health-related sustainable development goals.”

The report titled “Health Financing, Outcomes, and Inequality in sub-Saharan Africa” cautioned that governments must ensure investments in health reach the poorest and most vulnerable groups and proposes innovative uses of technology and social protection programmes.

The report showed sub-Saharan Africa has the highest rates of child mortality, and faces the highest risk of malaria, accounting for roughly 90 per cent of cases and deaths globally. Income inequality has also had a substantial effect in the region as progress in health outcomes in key areas has been faster for the wealthy compared to the poor.

In the 15 years since the Abuja Declaration, in which African governments committed to spend 15 per cent of their budgets towards health, less than half of these African countries have met this target in any given year.

On average, between 2012 and 2014, only Malawi, Swaziland, and Ethiopia met this target.

Crucially, investing in health had been shown to save lives and grow the economy.

A study found that for every 10 per cent increase in government health expenditure per capita, there has been a 25 per cent reduction in under-five mortality and a 21 per cent reduction in infant mortality.

Therefore, ONE called on policy markets in the continent to ensure that the poorest 20 per cent of the population are prioritised in health interventions; introduce and scale up social protection programmes that benefit the poorest and most vulnerable, such as child care grants and cash-transfers; utilise information and communications technology (ICT) and management information systems (MIS) to reach the poorest and most vulnerable, and to improve access to health services and service delivery; and make their budgets transparent and procurement processes open to close out opportunities for corruption.

CBN Governor, Godwin Emefiele

27

T H I S D AY • MONDAY, AUGUST 29, 2016

BUSINESSWORLD

APPOINTMENT / AWARDS

BATN Wins MAN’s ‘Best Kept Industrial Premises’ Award British American Tobacco Nigeria (BATN) has emerged winner of the Manufacturers Association of Nigeria (MAN) ‘Best Kept Industrial Premises’ award for 2016.

BATN, which was only making its first attempt in the competition, garnered 92 per cent score to place first.

The announcement was made following the environmental assessment of the factory premises conducted by the association’s environmental committee.

MAN’s ‘Best Kept Industrial Premises’ award is open to

manufacturing companies, including food and beverages manufacturers in the large scale, medium scale and small scale categories.

Other companies that finished top were Nampak Cartons and Nigerian Breweries, who were first and second runners-up respectively.

For the small/medium scale category, Boulus Food and Beverages, Frigoglass Manufacturing Industries Ltd and Vina International Ltd, came first, second and third respectively. Special recognition was given to Oriental Foods

Industry Ltd, Fan Milk Plc, Filade Marble Works and Altak Industry Limited.

The top three spots among the first 10 positions were clinched by companies in the large scale manufacturing cadre, while the remaining seven were mostly drawn from the small scale manufacturing cadre.

In an appreciation speech, the Manager, Operations, Environment Health and Safety, BATN, West Africa Area, Mr Jide King, after receiving the award on behalf of the company,

attributed the milestone to the company’s “deliberate adherence to global environment benchmark and serious housekeeping programme.”

He stated further that, “as a policy, BATN values its employees and is committed to providing world-class work environment for them.

Housekeeping for us is led by leadership; it is one of the elements of our incentive schemes for workers, which attracts a quarterly bonus.

The award was the highlight of the 33rd annual general meeting of MAN, Southwest.

ENTERS NEW NETWORK

L-R: Commercial Director, InterC Network, Sarah Agha; Chief Technical Officer, Muhammed Waya; Chief Executive Officer, Emad Sukker, at the launch of InterC Network 4GLTE Service in Lagos...recently

Sixth Edition of ADVAN Awards Holds in October In line with its tradition of strengthening the marketing industry through innovative platforms, the Advertisers Association of Nigeria (ADVAN), the umbrella body for all advertisers in Nigeria is set to bring together industry stakeholders and supporters to celebrate marketing teams that have made outstanding contributions to the industry.

The event, which is the sixth edition of the awards, is billed to take place in Lagos in October.

According to a statement issued by the association, this year’s award is structured for the express purpose of highlighting the fundamental position marketing occupies in business and public sectors, besides celebrating outstanding marketing achievements across a range of industries.

ADVAN President, David Okeme, was quoted as saying the award is part of ADVAN’s greater design to establish the marketing profession on a sustainable path to greatness. Okeme also feels this achievement could really be consolidated this year with the ADVAN Awards for Marketing Excellence now endorsed by the World Federation of Advertisers (WFA).

The President of ADVAN also revealed that two new categories have been

introduced this year, as part of the goal to develop and set standards for all areas of the industry. The two categories are Public Sector Marketing and Marketing on a Shoestring budget. The public sector marketing Awards category is to recognize the effective use of marketing elements, and delivery of the marketing strategy and communications programmes executed for/by public sector institutions. For Marketing on a shoestring budget award, the goal is to recognise the maximisation of “limited budgets” in achieving impact and measurable results.

The ADVAN President also revealed that the Awards Committee tasked with mandate of organising a world class event is populated by seasoned marketing professionals led by the Marketing Director of Nigerian Breweries Plc, Franco Maria Maggi, who would also serve as Chairman of the 2016 ADVAN Awards.

He also spoke on the judging process and stated that it remains one of the most valuable assets of the awards. Okeme later named Ikechi Odigbo, Managing Director DDB Lagos and Vice President Association of Advertising Agencies of Nigeria (AAAN) as the Chairman of the Panel of Judges for the 2016 Awards.

Noah’s Ark Shines at Loeries Int’l Advertising Festival Noah’s Ark Communications Limited, a leading advertising agency, has added another feather to its creative hat by clinching one Silver and two Bronze awards at the just concluded Loeries International Advertising Festival held recently in Durban, South Africa.

The Loeries is the biggest creative gathering in Africa and Middle East that seeks to reward and inspire innovation and relevance across the different spheres of brand communication.

Noah’s Ark Communications Limited was the only decorated agency, from Nigeria andthe entire West African sub-region.

Out of the 12 works entered for the awards by the agency, 8 made the shortlist, with three winning eventually.

The works that won the award for the agency are: ‘The Young Bookworms’ (Boko Halal Campaign), Muhammadu Buhari – Silver, Print category (a work done as Corporate Social Responsibility (CSR) project of the agency in clamouring for the release of the adopted Chibok Girls); Hypo, ‘For Whites Only’ (Oscars) –Bronze, Outdoor Category; and Gala, ‘No one is bigger than hunger’ (Obama) – Bronze, Magazine Advertising.

The Managing Director, Noah’s Ark Communications Limited, Mr. LanreAdisa,

described the achievement of the agency at the 2016LoeriesInternational Advertising Festival as another step in the direction towards achieving its vision - to be in the top league of successful brand builders out of Africa.

Adisa stated that the Loeries award marks another remarkable milestone, not only for the agency but also for the entire Nigerian creative advertising industry in its quest to earn its rightful place as a force to reckon within the global advertising landscape.

“It has always been our desire to put the Nigerian Advertising Industry in global limelight by winning at the highest level.

This is another step towards achieving this desire and we would not rest on our oars in doing that,” he said.

Also speaking on the laudable feat achieved by the Agency, the Executive Creative Director, Abolaji Alausa, noted that the award will further fuel and inspire more audacious creative outputs from the agency.

Alausa dedicated the award to his team for their doggedness, resilience and courage.

He specially dedicated ‘The Young Bookworms’ (Boko Halal Campaign) to the memory of the Agency’s late Associate Creative Director – Babatunde Ridwan Adebola who passed on about two years ago.

Adegboye Replaces Sviridov as Business Connexion MD The former Managing Director of Business Connexion, an ICT services company, Mr. John Sviridov, at the weekend, completed the one month handing over exercise that paved way for Mr. Ayo Adegboye to step into his shoes as the new Managing Director of the company.

Speaking at a send-forth party organised for Sviridov by the company in Lagos weekend, the former managing director said he would be going back to the company’s headquarters in South Africa from where he will exit the company in another two years, after attaining the retirement age of 60 years.

Sviridov has put in several years in the company, and has managed several divisions of the company before his appointment as managing director of the company in January 2015.

Sviridov said the most challenging period for him as managing director, was when the Lagos office of the company, housing 85 staff members, was razed by fire, two days after he resumed as managing director. “It was really challenging to resettle 85 staff members and still kept them working to meet customers’ satisfaction, but through collaborative efforts, we were able to overcome the challenge. Businesses have grown slowly in the last two years because of the harsh business environment of the country, but I believe that new managing director will use his expertise to further boost the company’s revenue.

Adegboye, who thanked Sviridov for his passion and

efforts in stabilising the business of the company in the last two years, promised to build on what he was able to achieve in the last two years.

He called for collaborative efforts to move the company forward. “The high quality of staff I met on ground, gives me great confidence that together we will make the difference and raise the profile of the company as a world-class technology business company,” Adegboye said.

He promised to drive new line of businesses, using Internet of Things (IoT) and the cloud technologies to raise revenue and customer confidence and satisfaction.

Business partners, who spoke at the send-forth party, commended Sviridov for his passion on the job, saying they will surely missed him. The Managing Director of Rack Centre, one of the partners of Business Connexion, Mr. Tunde Coker, who spoke of the business relationship between both companies, described Sviridov as a passionate leader and businessman who understands doing business in a more profitable way. Other business partners like Huawei Technologies also spoke well of the outgoing managing director of Business Connexion.

The members of staff of Business Connexion also poured out encomiums on their boss, whom they described as a wonderful and energetic man that they loved working with, because he was a team player and builder as well as targeted goal getter.

BA Rewards Nigerian Travel Partners British mega carrier, British Airways recently rewarded its travel partners all over Nigeria and out prizes ranging from I-Pad Air to Business class tickets on British Airways to return tickets to London on their award winning Club World seats (Business Class).

BA said from Lagos and Abuja Ms Enitan Adekunle of target Travels, Faith Ikpobi of GEM travels and Ms Hajju Kam Salem of Millenium Travels Abuja would be cruising on BA Club World to London courtesy of the tickets won at the BA event.

New I pad Air were won

by Solomon Alo of HRN Travels, Mrs Funmi Odumosu of Traveltron Ltd as well as Mrs Lara Dairo of Snowball Travels all collected I- Pad Air at the event.

In his remarks at the Travel Consultant’s forum held in Abuja and Lagos, BA’s Regional Manager, West Africa, Kola Olayinka said the relationship between his airline and agents remain a

very rock solid one, noting that without BA partners the airline cannot reach its highly valued customers who are located in every corner of Nigeria, adding that customers are the very essence of BA being in business He said the National Association of Nigeria Travel Agencies (NANTA) under the leadership of the current President is a very strong ally of British Airways because both jointly focused on the dual areas of growth of the Aviation industry as well as ensuring high level of customer service delivery to customers.

The NANTA President, Mr. Bernard Bankole who was represented at the Lagos event by Vice President of NANTA, Ms Kemi Adewole while lauding the efforts of BA in the market urged other airlines to emulate British Airways efforts in the way they relate to the industry and its travel partners who are the downstream of aviation sector in Nigeria.

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BUSINESSWORLD

INTERVIEW

Ahmed: GSK Has Full Confidence in the Nigerian Economy Glaxosmithkline’s Regional Head for Asia, Middle East & Africa, Mr. Zubair Ahmed recently visited Nigeria. He spoke to Goddy Egene on the company’s business and the Nigerian economy as a whole. Excerpts: Glaxosmithkline Consumer recently divested its drinks business in Nigeria. What informed this decision and how are you ensuring that it does not affect the performance of your business in Nigeria?

The divestiture was part of our overall strategic plan that has been in place for quite some time now. As you look at what we call the construct of what we called the GSK Company. What has changed is that we have a joint venture with Novatis, and the entire positioning of the new company is one of the world’s biggest over-the-counter (OTC )and healthcare companies. So in keeping with that focus globally, for Nigeria, for strategic reason to bring that focus on the global portfolio, we took that decision of divestiture.

So I fully agree that the divestiture affected some of iconic brands and people love those brands. It is a big part of the business and therefore, how are we going to restrategise from a shareholder perspective and continuing to grow the business and be profitable and provide shareholders return. We had to conceptualise it in global GSK positioning of its brands, which is very important. Today we are the leading OTC wellness company globally as a result of the joint venture with the Novartis and GSK. What that joint venture has done is that, it has given us close to 14 brands controlling global business in excess of 100 million pounds. So we have powerful brands and what we have done with some of brands, they are number one, number two, in each of their categories we compete in.

In most of the markets, you have tropical with brands coming from Novartis, again number one in most of the East European markets, including Germany. In respiratory, we got the brand called Otrivin, which is nasal decongestion and again, the number one brand. So what I am trying to tell you is that we got the number one, number two powerful brands in our global portfolios.

Right now in Nigeria, you see Sensodyne, which is number one, Panadol, which is one of the leading brands. Apart from that in Nigeria, we have not really leveraged our global assets. So, to answer your question how we will bridge the gap short term, and long term and create shareholder value, it will be in a gradual phased manner, leveraging its global assets based on local insight. Some may not be relevant to Nigeria but I think I have spent two days here and I think most of the brands will be relevant and we look at the feasibility of launching them in a phased manner. So that is one approach from a brand perspective. The second approach is from a route to market or getting access to our brands. What this divestiture does is bring a very focus approach in the way we market and distribute our brands, which is in line with our global positioning. So that focus on route to market along with the leveraging our global assets will give us the confidence that going forward, we should be able to bring this business back to where we were and in fact take it further.

Given the fact the Nigerian economy is struggling to survive, how is the parent firm going to support GSK Nigeria to make sure that you remain a leader in the industry?

Obviously, it will not only be GSK but all other multinationals operating in Nigeria. The impact of the slowdown and naira devaluation is going to have effect right across. But from GSK perspective, we will be doing a couple of things. First is to see, depending on the equity of our brands, what is the flexibility in taking price increases because even the Nigerian consumers are aware of this and

route to market. With the downturn, what is the most cost effective route to market model.

Subsect of that is how do we reduce the cost of our product, either through local sourcing, or value re-engineerining so that we can have the full impact of the exchange rate not passed on to the consumer, so that we as a company remains profitable by reducing our cost base and for the Nigerian consumer, that he or she does not have the full impact of by cost saving methodology. So these are the broad areas we are looking at. What, again, the finance strategy will be is what we are yet to conclude. We are still in discussions.

We will refine it and very soon it will be in public domain.

Because of the challenging environment, most companies listed on the Nigerian Stock Exchange (NSE), including GSK, are reporting lower revenue and profitability. What are you doing to ensure you remain afloat and deliver modest performance going forward?

The reality is that companies will see a shrinkage. So, either from a shareholder perspective or analysts perspective or readers perspective, they will see shrinkage right across.

The growths companies have been achieving in Nigeria will slow down. The second part of your question, which is profitability, from all I articulated earlier, in terms of how we can produce at lower cost, how we can produce locally, how can we restructure to reduce our operating cost, how do we go to the market.

Can they be contracted or shut down to bring down the expenses. So we are looking at all those so that the business could be relatively smaller or could be growing smaller but we remain afloat and remain profitable from a shareholder perspective that is what they really look at in terms of value creation.

Ahmed given the nature of the business, they would expect prices to go up. First will be what leverage exists in taking up prices. Second, is how do we source our products. Do we reduce the cost of our products so that the full impact of the devaluation is not passed on to the consumer?. The third option is to look at the way we are organised, the way we approach the business and what savings potential. So the short term is to help keep profitability of the business growing. Long term is what we feel as a company and being associated with Nigerian for over 45 years is cyclical in nature. The moment the oil prices start coming up, the economy kicks back and you will see growth and of course is business as usual and we expand and so on. But I think what you are talking about is very short term reaction to the devaluation. Basically, how can we operate in the most cost effective manner.

Despite the current headwinds, there are still growth potential in the Nigerian economy, what is GSK target investment in the country for the next few years.

I think that investment is output of the strategy. Right now, one of the strategies is in context of what is happening in Nigeria, which is the slowdown, the devaluation and so on. How do we re-strategise our Nigerian business, positioning each product and pricing.

Some products may not make any relevance anymore. So, once we agree on the strategy, then we come to the second phase as to what the investment model will be. So it will be very difficult for me to tell you what the investment going forward will be because that will be a function of the strategy which we will jointly agree for Nigeria.

One of the key issues that play a lot in businesses like this is technology. Looking at that, how is GSK bringing advanced technology into your business here and how are you transferring this technology locally?

Firstly, from consumer perspective, all our brands are global brands. All our innovations are global innovations. So whatever is the technology leading to the innovations within our products, we make that available to the Nigerian consumer. So Nigerian consumers get all model of global brands coming in. We innovate, those innovations are global and they are passed on to the consumers. Secondly and obviously we are considering what we are to manufacture locally. We are looking at Sensodyne, Horlicks, Andrews, Panadol. So as we bring more local productions, the technology will come. Lastly, as an organisation, we are global in nature so people who work with us, and we are pretty diverse. A lot of Nigerians work there and they definitely travelling to many places wherever the technology is sitting, working with them, bringing those technology. So, both from product perspective, the Nigerian consumer will access our technology.

And whatever we decide to produce locally, technology transfer will happen and thirdly, we have people working in the organisation on the research and development side who will be travelling, learning those technology and transfer them locally.

Amidst these challenges, does GSK still have plans to increase investment in Nigeria?

As I said earlier, we have to approach it from three or more levels. First is the way we are organised. Is it the most effective way? So that is at organisation level. The extension of that is our coverage model, what we call the

In times like these, companies introduce strategies because the consumer power is going down, general inflation and all. Are there ways GSK is thinking to empower its consumers to increase patronage?

What do you do because the disposable income reduces, alright. And therefore the normal trend you find is people go for smaller value packs. Therefore, if you look at our strategy already, if you look at Horlicks, these are in sachets packs. Maclean, we are looking at sachet packs. So across our portfolio, what you will see more is that, without diluting the efficacy of our products, because they are used by consumers for the benefits they get. So we do not want to dilute the efficacy, whether its body pain, fever, but how can we reduce the gashing as we call it, so instead of N10 pack, can I give N1 pack so that we do not lose the consumers and and recognise the disposable income as the money in their wallet reduces. So you will see more of this coming through.

We have given reasons for divesting from drinks business. But are there plans by you to bring in new products as replacement for those brands?

No. The divestiture is strategic. It is not a question of economic decision that the business was not making money. It did not fit into our global portfolio. Nigeria was the only exception in the beverage market. Our focus globally is that GSK globally compete in five categories, which is pains, respiratory, skin, oral healthcare, and digestive. These are the five categories that we compete globally. Nigeria was a bit of an aberration. What we have done has brought the portfolio synergized. We CONTINUED ON PAGE 31

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NEWS

Providus Bank Earmarks N100m as NEPC Intensifies Efforts to Boost Non-Oil Exports James Emejo and Chukwuemeka Maduagwuna in Abuja The Executive Director, Providus Bank Limited, Mr. Kingsley Aigbokhaevbo said the bank has set aside the sum of N100 million to support the Zero to Export initiative of the Nigeria Export Promotion Council (NEPC).

The zero to export scheme is one of the flagship programmes of the council, which focuses on creating a new generation of Nigerian exporters through practical and theoretical training of business executives, bankers, civil servant, unemployed graduates and retired citizens with interest in export business.

This is as the Executive Secretary/Chief Executive, NEPC, Mr. Olusegun Awolowo said it would continue to create opportunities for Nigerians to imbibe the culture of exportation through capacity building training programmes.

He also said the first export activity by the new exporters

is expected to take place in October, buoyed by the new financing lifeline from the bank.

Both spoke in Abuja at the passing out ceremony of 38 trainees in Batch 3 of Zero to Export capacity building programme.

Providus Bank is one of the newly licensed commercial banks operating in the country.

Awolowo added that the scheme had been part of the Council’s efforts to reposition the non-oil sector, re-write the narrative of the Council through job creation and inclusive growth - thereby making it a major contributor to the Gross Domestic Product (GDP).

He said: “There is no doubt that the essence of our gathering today underscores the crucial role that non-oil export sector is expected to play in the present administration’s effort at diversifying the Nigerian economy away from over reliance on oil as its main stay, especially now that the continuous fall in price of oil has thrown the world economy in recession.”

He said the graduants are better prepared to boost the country’s export capabilities, adding that the export business is for seriously commitment people and not a hubby.

He said: “They’ve gone through the rudiment and seen that Export cannot be a hubby but a full time job that requires you to get your company and start to export.

We are thrill by these crop of exporters that know the A-Z of export.

“These are the set of exporters that are going to help take Nigerian goods abroad. Today, we have Providious Bank, a new bank that has come in and said the first thing we want to do is export and they’ve set up an export desk and are now going to be working with these crop of graduants that have formed themselves into a cooperative and they are going to be helping them.”

He said: “And they’ve told you that their first export will be done in October and Providus Bank has come to help them to

the tune of N100 million. These are the kinds of strategy and partnerships that we are looking for in order to transform the country’s economy.”

The programme is anchored on a Public Private Partnership (PPP) arrangement led by the Consultant Mr. Kola Awe of EPT Logistics International Limited with support from Fidelity Bank Plc. Head, Corporate Communications (NEPC), Mr. Joe Itah in a statement said the programme has so far trained and graduated over 100 trainees from the Lagos and Abuja centers and most of the trainees have formed registered Cooperatives, and are already exporting.

The Batch 3 graduates have also registered the Integrated Exporters’ Cooperative Society Limited and it’s hoped that the programme would bring about a high value addition to non-oil products and services in the country at a time when the nation needs to revive its manufacturing, agricultural and industrial sectors.

L-R: Director, Brands and Experience, Etisalat Nigeria, Elvis Daniel; Director, Radiologist, University of Uyo Teaching Hospital, Iniobong Ekanem; Idara Etuk from the Teaching Hospital and Head, Retail Sales, South-south and South-east Region, Etisalat Nigeria, Embassey Taiwo, at the Etisalat Customer Forum held in Uyo, Akwa Ibom State...recently

CIMA Offers 50% Discount, Fast Track Route The Chartered Institute of Management Accountants (CIMA) has launched a special offer of 50 per cent off its standard registration fee for Masters of Business Administration (MBA) and Masters of Science (MSc) in accounting holders, as well as chartered accountants.

The special offer, which closes 31 December 2016, allows Nigerians with the relevant degrees to extend the global reach of their career by obtaining the Chartered Global Management Accountant (CGMA) designation.

This designation for management accountants, the company said in a statement, is recognised the world over as the most relevant finance qualification for business and is powered by the expertise and resources of CIMA and American Institute of Certified Public Accountants

(AICPA).

CIMA Nigeria Country Manager, Ijeoma Anadozie said: “In today’s volatile, uncertain, complex and ambiguous business environment, high-quality decision making has become more important or more difficult. Integrated thinking is the future. Remarkably, the CIMA curriculum has been designed to produce integrated thinkers who are in high demand in top organisations because they perform consistently better than industry peers. And against the backdrop of Naira’s deprecation, we see this as the way to make CIMA more accessible to a greater number of business, finance and accounting graduates and professionals.”

The Country Manager disclosed that CIMA’s accelerated route has been extended to chartered accountants, MSc in Accounting and MBA holders in Nigeria.

Eromosele Abiodun SIFAX Group has disclosed the major reasons for sitting its newly-opened RoRo terminals outside the port environment.

As part of the one-stop-shop vehicle importation service launched by SIFAX Group recently, the company said it has opened two terminals at Okota, Lagos, where the storage and releasing of the imported vehicles are done.

This, the company said in a statement, was a departure from the practice where vehicles were cleared from facilities in and around the port area.

According to the Group Managing Director, SIFAX Group, Mr. John Jenkins, the state of deteriorating roads around the port and need to decongest the port are two of the major factors for taking the terminals away from the port.

He said: “The reason why we made SIFAX terminals at Okota our releasing office was because there is a high demand for dedicated RoRo Off-dock terminal solutions outside the port area. With an increase in import cargo and deteriorating roads, consignees are seeking for better accessibility in the release of their cargo. SIFAX Group Off-dock terminals located at Okota offer this unique logistic advantage, which is highly recognised in Lagos.

“The Off-dock terminals are strategically located along the main roads of Lagos and they are new purpose-built logistics

center for handling RoRo products for the Nigerian market.

Its geographical position in the center of Lagos industrial zone provides consignees with faster and more cost effective transport solution.”

Jenkins further said that it was necessary to open the new terminals to customers because the ports area is a temporary transit base where cargoes are stored before it is then transferred to an off-dock terminal.

He also assured agents and consignees of an innovative, excellent and unparalleled customer service that will make the releasing of vehicles at the terminals a pleasurable experience.

General Manager, RoRo Terminals, SIFAX Group, Mr. Saheed Lasisi, noted that both terminals have all the required facilities to meet and exceed expectations of the agents.

“At the Okota terminals, we have the presence of the Nigerian Customs Service officers, a billing and manifest office and all other services that can make the releasing of vehicles very convenient. This is because we care a lot about our customers and clients”, he said.

The SIFAX Group vehicle importation service is a partnership involving foremost international shipping agent, Auto Export Shipping (AES) and Hyundai Glovis. Over 1,000 vehicles are expected to be imported into Nigeria from major ports in the United States every month.

Experts List Critical Role of Cabin Crew in Air Safety

CUSTOMER FORUM

Eromosele Abiodun

SIFAX Explains Siting of Roro Terminals Outside Port

The route, according to her, grants 12 exemptions out of 17 papers, leaving applicants just five papers to write after the initial assessment.

“Successful candidates are also awarded the CIMA Advanced Diploma in Management Accounting, entitling them to use of the professional letters CIMA Ad Dip MA. The CIMA founded in 1919, is the world’s leading and largest professional body of management accountants, with over 227,000 members and students in 179 countries, working at the heart of business.

CIMA members and students work in industry, commerce, and the public sector and notfor-profit organisations.

“CIMA works closely with employers and sponsors leadingedge research, constantly updating its qualification, professional experience requirements and continuing professional development to ensure it remains

the employers’ choice when recruiting financially-trained business leaders. Professionalism and ethics are at the core of CIMA’s activities with every member and student bound by robust standards so that integrity, expertise and vision are brought together, “she said.

CIMA, she stated, has formed a joint venture with the American Institute of CPAs (AICPA) to establish the Chartered Global Management Accountant (CGMA) designation.

“CGMA is the global quality standard that further elevates the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance. CIMA is proud to be the first professional accounting body to offer a truly global product in the fast-moving area of Islamic Finance, “she said.

Chinedu Eze Experts in the aviation sector have said that effective communication between flight and cabin crew ensures that air safety as cabin crew deal directly with the passengers on board.

This was disclosed at the weekend during the Cabin Safety workshop at the Nigerian Civil Aviation Authority, (NCAA) Annex Training Hall in Lagos.

Speaking at the event, Chief Pilot, Aero Contractors, said that in a bid to ensure safety, efficiency and productivity of flights, communication and feedback is needed between the cockpit and cabin crew despite their different roles.

“Barriers to effective communication on board are physical, environmental, pysco-social and organisational. It is therefore important that regulations be implemented to foster relationship between technical staff and cabin crew members,” Moka added.

Moka stressed the need to consistently train both pilots and cabin crew on safety issues so that when incidents occur, they can work together to manage

such issues.

Director General, NCAA, who was represented by Director of Operations, Abdullahi Sidi said that the Cabin Safety Inspectorate is always proactive and have decided to engage cockpit-cabin in the workshop this year.

Usman said the discussion would trigger healthier, professional and beneficial aviation relationships for effective flight safety.

“All spheres of human endeavour require relationships and good relationship make us healthy and strong. The crew members and cockpit are a team and no one is inferior to the other,” he added.

Some of the crew members present said that most of them are often looked down on by the pilots and that bridges the relationship which is supposed to be a cordial one.

Ordor Maria, Assistant General Manager Cabib Crew, NCAA explained that the workshop enables cabin crew members to update on regulations, standard and recommended practices; create an ambiance for the regulators and regulated to meet and foster interactions.

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FBN Merchant Bank Supports Community and Youth Devt Goddy Egene FBN Merchant Bank Limited, a subsidiary of the FBN Holdings Plc, recently delivered the ‘Pick-A-Litter’ environmental sustainability initiative in collaboration with the Eti-Osa Youth Development Initiative (EYDI) in line with its commitment to promote youth and community development.

The event, which was anchored by Mr. Ayodeji Laurent of EYDI and staff of the Bank, involved the delivery of a series of activities to mobilise, educate and promote environmental cleanliness within the IkoyiObalende environs, commencing with a three-day sensitisation and capacity building workshop for the Ikoyi-Obalende Local Council Development Areas(LCDAs).

Representatives from the Ikoyi-ObalendeLCDAs were also present to speak on environmental hygiene, recycling, health and nutrition, thereby educating residents on the health impact of a safe and clean environment.

According to Head of Marketing & Corporate Communications for FBN Merchant Bank, Lolade Sasore, “Our support for the ‘Pick-A-Litter’ initiative clearly aligns with our group corporate responsibility & sustainability focus on community support. We will continue to encourage the neighboring youths to contribute to development, while remaining confident that partnering with EYDI within our own community will drive this positive change.

The Initiative is expected to drive a long-term solution, as

it is critical to sustaining our community and environment,” she added.

While presenting cleaning tools to EYDI at a handover ceremony, the Executive Director of FBN Merchant Bank, Mr. Gboyega Fatoki said: “We are delighted to partner with EYDI on the ‘Pick-A-Litter’ initiative, as a bank and as part of a group that believes in enhancing the our community and immediate environment.”

In his acceptance speech, the President of EYDI, Laurent thanked FBN Merchant Bank for its support and partnership that helped actualise the maiden edition of the ‘Pick-A-Litter’ initiative.

“We are grateful for the encouragement and hands-on support from the team at FBN Merchant Bank. The ‘Pick-A-

Litter’ initiative was conceived as an environmental cleanup initiative geared towards sensitizing individuals within our community on environmental hygiene. We are proud and excited to have actualized a successful maiden edition and are optimistic about delivering more events in future,” he said.

The EYDI is a community based Non-Governmental Organisation (NGO) powered by voluntary efforts, which is focused on health, education, sports, empowerment and the environment. FBN Merchant Bank handed over cleaning tools to EYDI to facilitate an ongoing community cleaning exercise in the three council development areas within Ikoyi-Obalende (East, West and Central).

FOR IMPROVED FINANCIAL SERVICES

L-R: Chief Executive Officer, Enhancing Financial Innovation and Access, (EFInA), Mrs. Chidinma Lawanson; Digital Financial Services consultant MFX partners, Mr. Kwame Oppong; Senior Consultant CapPlus, Mrs. Funmi Sodipo and Technical Officer, Impact Insurance Facility International Labour Organization, Mr. Miguel Solana at a recent launch of EFInA’s Request for proposals 7 event held in Lagos... recently

Arla Foods, FG Sign MoU on Dairy Sector in Nigeria Arla Foods, maker of Dano milk and one of the world’s largest dairy cooperatives, has signed a Memorandum of Understanding (MoU) with the Federal Government of Nigeria through the Ministry of Agriculture and Rural Development to provide enabling organisational structure and trainings that will facilitate the development of the dairy industry in Nigeria.

The MoU was signed recently in Abuja in a move that reaffirms Arla’s commitment to support the Nigerian government with the development of the local dairy sector in Nigeria.

Speaking at the signing ceremony, Nigeria’s Minister of Agriculture and Rural Development, Chief Audu Ogbeh, said the MoU was a signage for Nigeria’s critical need to develop the dairy industry, not just as a business but as a development programme. The Minister welcomed objectives of the MoU, including support from European Union (EU), knowledge-transfer, partnership with farmers and technical training programmes.

“What you are doing excites me a lot because Nigeria is at a critical time in its development. The population is growing extremely fast. We have a large number of children malnourished, almost 27 per cent. We have a school feeding programme and dream of a day when every child should have sufficient meals per day.

From the cattle breeding improvement programme, we are looking at a near future when a family in the city outskirts can keep poverty away with three or four cows. The Nigerian dairy market is huge, with about 450 million consumers by 2050. Nigeria also has its eyes on feeding West, North and Central Africa. As soon as this MoU is signed, we expect you to go on with the joint

ventures and partnerships,” the honourable minister said.

Speaking in the same vein, the Regional Office Director for Sub-Saharan Africa, Arla Foods, Mr. Steen Hadsbjerg, said the partnership will open a new window of job opportunities, increase in wealth creation for farmers and expansion of investment opportunities.

“Nigeria is one of the biggest markets for dairy products in Africa. For Arla to succeed in Africa, we must succeed in Nigeria.

The population is growing, and people are young, ambitious and increasingly welleducated. By consummating this partnership today, we have taken another step to ensure that Arla Foods not only become a household name in Nigeria, but also work to create employment, improve return on investment for farmers and expand investment opportunities,” he said.

Hadsbjerg also revealed that the partnership with the Federal Ministry Agriculture and Rural Development (FMARD) will promote and strengthen the emergence of a dairy cooperative system in Nigeria thereby giving farmers a strong voice and ensuring efficient distribution of knowledge.

The MoU empowers Arla Foods to create incentives for nomadic herders to develop cooperative dairy businesses through the provision of workable organisational structure and training, as well as promoting and strengthening dairy cooperatives in Nigeria by improving their capabilities to be competitive on price and quality as well as gaining a larger share of the local dairy market. Other areas of improvement the partnership will focus upon include capabilities for qualitative product development and go-to-market abilities.

FG Commended for Designation of Enugu as Int’l Airport Chinedu Eze International travellers from South East have commended the federal government and a Minister of Aviation, Senator Stella Oduah for the designation of Enugu as international airport.

The Akanu Ibiam International Airport Enugu operated its maiden international flight on august 24, 2013 and since then has sustained the outbound flights to international destinations, culminating with the deployment of cargo flight by Ethiopian airlines on Tuesday.

According to airport officials, businessmen and women from the South East have praised the federal government for making it convenient for them to travel from the region without going to Abuja or Lagos.

The Governor of Enugu state, Chief Ifeanyi Ugwuanyi along with business moguls and top political office holders in South East welcomed the first cargo flight to the Akanu Ibiam International Airport, Enugu.

The airplane operated by Ethiopian Airlines was a Boeing B757, which has the capacity to carry bulk cargo as many travellers in the zone bring in a lot of cargo from their trips.

Amid fanfare and excitement by a large crowd who came to witness the event, the people gave kudos to the former Minister of Aviation, Oduah, now representing Anambra North Senatorial zone, in the Senate who manifested government’s good intention to make Enugu an international airport.

The former Minister, who actualised the dream of the South East people also midwifed

the building of international terminal at the airport and facilitated the designation of Ethiopian Airlines to operate there.

With cargo flights to the airport, the federal government has made it possible for businessmen and women to bring their cargo through the airport, as the Nigeria Aviation Handling Company PLC had earlier built a cargo warehouse at the airport.

The coming of cargo flights to Enugu will put an end to incidents where travellers would arrive their destination and wait for days to receive their cargo and the cargo warehouse was timely because before now people’s luggage were exposed to the elements as they await clearance by concerned authorities.

Addressing the large crowd

of people on the occasion, Governor Ugwuanyi described the event as a historic occasion that would increase the profile of the airport and boost the economy of the state and the entire South East zone.

The Governor said it was noteworthy that the cargo plane landed exactly three years after the maiden flight of Ethiopia Airlines to Enugu on August 24, 2013 when the people welcomed the first ever- international flight to Enugu.

“Today we have gathered again to celebrate the first landing of cargo at this same airport, and which once more has happened courtesy of the Ethiopian Airlines,” he said.

Reacting to the event, the General Manager, Public Affairs of the Federal Airports Authority of Nigeria (FAAN),

Mr. Yakubu Dati said FAAN was implementing the lofty plan of Senator Hadi Sirika, Minister of State Aviation, to ensure air connectivity to different parts o the country, noting that the present administration has continued to respond to the yearnings of the people.

Dati added that government has it in its plans to designate more airlines to operate international flights, especially now that international terminal of the airport is almost ready.

Meanwhile FAAN at the weekend advised the Muslim pilgrims embarking on this year’s holy pilgrimage to Mecca in Saudi Arabia to desist from smuggling prohibited items into the holy land.

This is just as the organisation responsible for managing airports across the country has

assured that it would ensure that the return journey of the pilgrims back to Nigeria would be made safe and secured through the preparations that have been put on ground.

FAAN attributed the hitch free exercise so far recorded across the airports where pilgrims were airlifted to the rigorous preparation put on ground by the FAAN management Dati cited the hard efforts made by the organisation led by the Chairman of the Aviation Monitoring Committee from the Ministry of Transport, Alhaji Adamu Wakil, to ensure safety and security at the airports while the exercise lasted.

In line with this, Dati said the committee chairman was at the Sokoto airport with top directors in FAAN to inspect and witness the operation.

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AHMED: GSK HAS FULL CONFIDENCE IN THE NIGERIAN ECONOMY plan in place, which is our full blown strategic plan for Africa, Malaysia and China. As soon as things turn around, we stay invested and just expand our footprint and is business back as usual. So we intend to adapt, re-strategise and keep the equity of our brand, which is the most precious thing we have and our people. So we make sure we hold on to our talent, loyal consumer and do not dilute the equity of brand. These are the two things we leverage, the strength of our brand and the strength of our people. Any business, if you have these two, I firmly believe, you have a recipe for success.

will not be getting into functional beverages.

We stick to these categories for now.

Now it is very obvious that all companies will record lower revenue and bottom-lines.

What is you assurance for shareholders of GSK will still pay dividend at the end of the year?

Firstly, the shareholders have visibility to the micro economic scenario which is happening.

So from my mindset, they should expect that the revenue will go down, the profitability, short term, will go down. But as I spoke to you earlier, the team will put a strategy together, which will be approved by the board. And that strategy will be how can we ramp up as quickly as possible the top-line and keep the profitability of the business growing so that we can pay out the type of dividend we have been paying in the past.

Some time, GSK made an attempt to increase its stake in GSK Nigerian but it failed. Are there plans to repeat this attempt soon?

No. That plan has been put on hold. We are very happy partnering GSK Nigeria Plc. We want to remain a PLC in the market and we want to Nigerians healthier. We are comfortable with the current ownership arrangement here. As we increase the business, we want to make sure that we make good returns to shareholders and parent company. So we will review that in the future. But for now, no plan to increase our stake from the current level.

You have been in Nigeria for days and you oversee businesses in Asia, Africa, given your experience and seeing the challenges companies are going through in the country.

How do you think the companies could be supported to perform better?

My area of responsibility is across emerging markets and you see this up and down in the emerging markets very so often. You look at the Indian market, Chinese market, Malaysian

Ahmed market, Indonesian market, all of them go up and down because of the very nature of the way the economy is structured. Indonesia relies heavily on oil Malaysian relies on oil, Middle East, again, relies heavily on oil. So when the oil prices crash, the economy goes into turmoil. So this is a cyclical thing, which

we are quite used to. What we do very well as GSK is how quickly you can adapt business model in a downturn without pulling out investments but ‘contract’ to keep the profitability of the operations going, which is a short. We are very good at that and that is what we are doing. But we have definitely, a

What will be your final message for your stakeholders, comprising workers, consumers and shareholders?

To my organisation, obviously, it will be a function of resilience. We believe in Nigerian economy because I have seen this economy for 30 years. I find it very robust because it has hardworking people with over 150 million population. My message to company is stay focused, stay resilience, this is a temporary bump, we will have a strategy which will take us over the bump and the good days will roll back again. From a shareholders’ perspective, who are a bit more dividend and return focused, obviously, we are here as a company for a long haul. We are not short-term. We believe in the Nigerian people, we believe the economy will bounce back. We are working on a new strategy to maintain probability. For consumers, most of them believe in the brands and the benefits they bring to them. So as long as you have sensivity and Sensodyne is what you believe in and that helps you, the trust consumers have in Sensodyne, in Panadol, Andrews will keep us going. And in our strategy, we make sure that equity is not diluted. We do not fool around with our products, we do fool around with our formulations because the consumer and the consumer health and wellness is of extreme importance to us.

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BUSINESSWORLD

PERSPECTIVE

Deep Seaports Everywhere, But Which Will be Viable?

Bolaji Akinola reasons that establishing deep seaports outside Lagos will not be viable and might not yield returns or add significant value to the Nigerian economy It appears some state governors are trying to outdo each other in the establishment of so-called deep seaports in their domains.

Lagos State is pushing hard for the Lekki deep seaport and Badagry mega-port while Ondo and Ogun States have been championing the joint development of the Olokola deep seaport for about a decade. Akwa Ibom State joined the fray about four years ago under its erstwhile governor, Godswill Akpabio with the proposed Ibaka (or Ibom) deep seaport, while Ben Ayade of Cross River State, shortly after assuming the governorship of his state in 2015, became a strong advocate of the Calabar deep seaport.

One begins to wonder if these governors have done their homework on the viability or otherwise of the proposed deep seaports. Why will any state, in this period of austerity, expend as much as two billion dollars on a facility that might not yield good future returns or add significant value to the economy of the state or better the lives of its citizens?

I honestly do not believe that any deep seaport outside Lagos will be viable. There will not be sufficient cargo volumes to support such facilities in the next 50 years. This is clear enough from the current underutilization of existing port facilities in the country, especially those facilities outside Lagos. For instance, while the ports in Lagos have capacity utilization of about 50 – 60% at present, the ones in the South South – Warri, Port Harcourt and Calabar – have about 25% capacity utilization. The exception will be Onne Port which is fairly busy. Even the so-called Olokola port; can it honestly compete with the ports in Lagos or the ports of fellow West African countries such as the Autonomous Port of Cotonou or the Port of Lome for cargo?

I think rather than establish their mega white elephant projects, the governments of Akwa Ibom and Cross Rivers States should join hands with the Federal Government to address the shortcomings of the Calabar Port so that it can attract business and compete with other ports in the sub-region. The shortcomings of the Calabar Port include shallow draft, which has made it impossible for large vessels to berth, poor port access road and the restriction imposed by the Ikom bridge.

The question is, does Nigeria require a deep seaport? Yes it does, but one is enough for now and I believe Lagos remains the most viable state to host such facility.

Container throughput at the two ports in Lagos is expected to hit two million twenty-foot equivalent units (TEUs) by 2020 whereas the maximum capacity that the ports and the Inland Container Depots (ICDs) in the State can accommodate is 2.2 million TEUs. Lagos ports alone handle 90 per cent of the cargo

Cross River State Governor, Ben Ayade (left) in a handshake with the Managing Director of the Nigerian Ports Authority, Hadiza Bala Usman, during a courtesy visit to the governor by the NPA boss … recently

in and out of Nigeria. With this expected growth in container volumes, the combined capacity of Apapa Port and Tin Can Island Port and all the Inland Container Depots (ICDs) in the Lagos area is expected to be inadequate within the next five years. The same situation also applies to general cargo terminals.

A new port will therefore be needed to keep up with the demand for capacity, as the existing ports are surrounded by the city and cannot be further expanded.

At present, two new seaports are at various stages of development in Lagos State. APM Terminals and its consortium of partners are developing the Badagry mega-port project and Free Trade Zone while Indian firm, Tolaram Group, is spearheading the Lekki Port project being developed within the Lagos Free Trade Zone.

Since the existing ports in Lagos will run out of capacity in the next five years – a new port has become imperative but certainly two new deep seaports will be an over kill. So which of the two new ports will be sustainable?

The natural location, the supporting infrastructure and the support of stakeholders are key success of a Greenfield port. In choosing the location of a Greenfield port, the factors that must be considered include natural deepwater and harbour and supporting navigational channels with commensurate draft.

Other factors include lower risk of encroachment of city development in the immediate future, connection to multimodal infrastructure for evacuation of

cargo by road, rail and barge, government support to the investors with policies that will protect investments, presence of adequate supporting services and review of cargo clearance processes to support faster cargo evacuation and reduce dwell time.

Both Badagry and Lekki have natural features for a port.

Natural harbours have long been of great strategic naval and economic importance. They reduce or eliminate the need for breakwaters which would ordinarily cost a fortune to construct. Some examples of natural harbours are New York City harbour in the United States; Kingston Harbour in Jamaica; Subic, Zambales in the Philippines; Sydney Harbour in Australia; Pearl Harbour in Hawaii; San Francisco Bay in California; Visakhapatnam Harbour in Andhra Pradesh, India; Killybegs in County Donegal Ireland; and Halifax Harbour in Nova Scotia, Canada. Unlike Lekki which is more of a residential area; Badagry has been used before now as a port especially in the days of slave trade.

The proposed Port at Lekki is surrounded by the lagoon and you can go in and out of the port area through only one way.

Because the Lekki axis is largely a residential area, vehicular traffic in and out is very heavy without the added burden of trucks plying that route. What will happen when trucks join the fray on the road is better imagined. Due to this constraint and in the absence of a rail system, evacuation of containers from the Lekki Port to the Western part of the country will be very difficult if not impossible. You can’t move goods up north either except a new bridge

the size of the Third Mainlaind Bridge is constructed around the lagoon. Trucks evacuating goods from the port however can head for the Eastern part of the country but then, they will have to travel almost 100 kilometres to link up the Benin-Ore road. Movement of goods out of the port through barges is not an option either because Lekki is backed by a very broad and shallow lagoon making barging difficult.

Badagry is devoid of the logistics constraints confronting Lekki.

The lagoon, which terminates just before Badagry, will form one of the boundaries of the Badagry mega-port. The lagoon is not a problem for the port as a bridge already exists over it. Access road in and out of Badagry is much better than Lekki. The traffic congestion being experienced on the Badagry expressway is already being addressed by the Lagos State Government through the construction of six lanes on each side. There is also a road link from Badagry through Agbara which can take trucks to the northern part of the country and which by-passes the heavily crowded Okokomaiko-Mile 2 axis. Badagry also has a higher potential for barging with its narrow but deep lagoon. From a logistics perspective therefore, Badagry is superior to Lekki but one must quickly add that neither Badagry nor Lekki has rail links at present.

From a commercial perspective; it is necessary to consider how to move patronage from the existing facilities to the new port.

The inertia of freight forwarders, importers, exporters and other stakeholders to move their structures and operations from existing

port facilities to a new satellite port is a significant challenge associated with new ports. This major challenge can be seen with regards to the operation of the Batangas International Seaport in the Philippines which commenced operation about 10 years ago and despite several government incentives, is still struggling.

The Port of Manilla was hugely congested and Batangas, located 70 kilometres away, was built to take pressure off it. For the first two years of operation, no ship called at Batanga and till date, the port handles less than ten percent of Manilla’s cargo.

Lekki Port’s business strategy, anchored on getting shipping lines to call at the port with the believe that this will compel patronage, has been proven time and again that shipping lines don’t actually control where cargoes go. It is overly simplistic to assume that once you offer shipping companies certain level of incentives, then the port will come alive. Despite reduction in wharfage, berthing fees and vessel-related charges at the Batangas Port, activities are very low almost a decade after it commenced operation. No doubt, government support and legislation are required to make new satellite ports work but it is important also to have the ability to move freight forwarders, truck operators and other stakeholders.

From this perspective – Badagry Port also has an advantage over Lekki because the promoters – APM Terminals and its consortium partners have control over cargo volume in Apapa unlike the promoters of Lekki who have no control of any port operation in the country – or in any part of West Africa.

A “build it and they will come” mentality won’t work with a new port project. A new port must also have a significant basis of gateway cargo in order for a solid business case to be built for transshipment cargo. Building a port, like Lekki and Badagry, on the assumption that it will be sustained on transshipment cargo is a fallacy. Transshipment cargo can come and disappear overnight especially without strong domestic cargo. The cost of building a new port cannot be underestimated with about USD1.5 billion required for investment in quay wall, quay apron, terminals, cargo handling equipment, information technology etc. Potential investors and financiers will certainly be interested in good return on investment.

Spending USD1.5 billion in Lekki and another USD1.5 billion in Badagry means someone is going to get their fingers burnt. There will be growth in volume over the years no doubt but not such as can take two new deep seaports in Lagos – or five in Nigeria - in addition to the existing ports.

There is simply no market for it and there won’t be in another half a century.

Akinola is a Lagos-based Maritime Expert

T H I S D AY MONDAY AUGUST 29, 2016

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BUSINESS/MONEYGUIDE

Elumelu Harps on Entrepreneurial Skills to Fight Poverty Obinna Chima The Chairman of Heirs Holdings, Mr. Tony Elumelu has advocated entrepreneurship as a veritable solution to achieving poverty reduction in the country.

Elumelu, who is also the Founder of The Tony Elumelu Foundation said this in a paper titled: “Entrepreneurship, Corporate Social Responsibility and Africapitalism: The Role of The Private Sector in Fighting Poverty in Nigeria,” he delivered at the nation’s think-tank, the National Institute of Policy and Strategic Studies in Kuru, Plateau State recently.

There, he addressed a distinguished guest list of 67 participants from top government constituencies including the police, the military, national planning, works, and the presidency, debating ways to move the country forward in light of the present economic challenges.

In his lecture, Elumelu expressed optimism that with the right policy reforms, Nigeria could be well on its way to rising above its present challenges.

He reiterated his long-term conviction on entrepreneurship as a solution to arresting the economic challenges facing the country.

He stated that past governments had not been successful in eradicating poverty in Nigeria in spite of the various entrepreneurship schemes that have been introduced over the past 30 years.

“Governments alone do not have the capacity to provide the basic daily needs or employment for the millions of young Nigerians entering the job market every year. Therefore, the private sector must be an integral part of our national poverty eradication and development strategy,” he added.

An advocate of Africapital-

ism, Elumelu expressed that entrepreneurship and not philanthropy, is key to achieving poverty reduction and empowering Nigerians as we strive to solve our challenges without dependence on aid from outside the country.

“No one but us will save ourselves,” he said.

“The development of Africa is up to Africans. Donors and partners can help, but the work of developing our nations is ours. Nigeria’s poverty and development challenges are great. But they do not exceed the capacity of our people to solve them. We welcome every initiative that helps in reducing poverty. More effort is required’ said Elumelu.

The acting Director General of the Institute, Ibrahim Lamorde, urged the participants in their respective workplaces to commit to creating a conducive environment for entrepreneurs to thrive.

Sterling Bank Partners States on CSR Nume Ekeghe The Governors of Plateau, Bauchi and Gombe States, Simon Lalong, Mohammed Abdullahi Abubakar and Ibrahim Hassan Dankwambo respectively have commended Sterling Bank Plc for its role in checkmating desertification experienced in some Northern parts of the country through its tree planting initiative.

Desertification, according to them, had caused a lot of damage to the local economy as it has made farming impossible in affected areas leading to high cost of food items and poor standard of living for the people.

According to a statement from the bank, the governors made

these remarks during the tree planting exercise organised by the bank in in the three pilot states at the weekend.

They said the initiative would sustain the environment and checkmate the rising challenges posed by desertification as well as generate the much needed awareness on desertification at local, national and global levels.

The bank last week commenced the pilot stage of the tree planting initiative in three states in Northern Nigeria.

The initiative, according to the bank became imperative as one of the solutions to cushion the effects of desertification in the country, as Nigeria is faced with rapid desert encroachment affecting fifteen northern states

with various degree of impact.

The Plateau State Governor who was represented by the State’s Commissioner for Agriculture, Mrs. Lynda Shekinah Barau commended the bank for coming up with the initiative, which according to her, remained the most tested solution to stemming the tide of desertification and is in line with the United Nation’s Sustainable Developmental Goals for environmental preservation.

Similarly, Bauchi State Commissioner for Power, Mines and Environment, Dr. Audu Bogoro, who represented the Bauchi State Governor noted that the bank, with the initiative, has raised the bar in corporate social responsibility.

Royal Exchange Records N8.43bn Half-year Gross Premium Ebere Nwoji Royal Exchange Plc has announced a Gross Written Premium of N8.43 billion from its business activities in the first half of 2016 financial year.

This represented 34 per cent increase over N6.28 billion gross written premium recorded by the company in the corresponding period in 2015.

The company’s Gross Premium Income also witnessed a growth of 17 per cent over the 2015 figures, with the 2016 figure standing at N6.46 billion, compared to the N5.50 billion generated in the corresponding period in 2015. Net Premium

Income for the period amounted to N4.34 billion, with a modest growth of 5 percent over that of half year 2015, which stood at N4.12 billion.

Similarly, total Net Claims paid for the period under review stood at N1.95 billion, showing an increase of 42 per cent from half year 2015, which was N1.37 billion.

Commenting on the results in a statement, the Group Managing Director of the company, Alhaji Auwalu Muktari, said that “the half year results on the top-line items witnessed significant growth which shows that Royal Exchange as an insurance group, is focusing on its growth objectives set out at the beginning

of the year, by participating in large-ticket financial transactions, as well as playing in the retail insurance market.”

Muktari, said despite the harsh operating environment witnessed in the Nigerian economy, the company’s management remains optimistic that by focusing efforts on aggressive sales of its various products and service offerings, increasing its presence and participation in the retail sales space, reducing operating costs profile and embarking on various expense optimisation strategies, the company will be able to surpass its financial targets set for itself at the beginning of the year.

Union Bank Enhances Customer Satisfaction In order to enhance service quality in the bank, Union Bank of Nigeria Plc in conjunction with CBC Netcomms, has launched Nigeria’s first street WiFi network in Lagos.

According to a statement, the ‘Stallion Hotspot’ is the bank’s initiative to provide free and fast wireless internet connection for residents, visitors and commuters on and around Admiralty Way, Lekki in Lagos.

The Head of Corporate Affairs

and Communications at Union Bank, Ogochukwu EkezieEkaidem, while speaking on the launch of the hotspot, said: “In this mobile age, we need to stay connected to loved ones, businesses and the world in general. Therefore, Union Bank customers can carry out their transactions in real-time via UnionMobile.

“Stallion Hotspot is another simpler and smarter solution to help our customers and

communities do more of what matters while on the go.”

Also, Sales Manager of CBC Netcomms, Olu Fadairo, described the Stallion Hotspot as a unique solution, saying it has been deployed in an uncontrolled, open-air environment and “is arguably the first metro WiFi service in West Africa. As with all innovations, we will continue to optimise the service and are available to support users.”

Elumelu

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

MARCH 2016 Broad Money (M2)

20,470,436.00

-- Narrow Money (M1)

9,040,817.68

---- Currency Outside Banks

1,441,365.03

---- Demand Deposits

7,599,452.65

-- Quasi Money

11,429,618.32

Net Foreign Assets (NFA)

5,551,714.27

Net Domestic Assets(NDA)

14,918,721.73 22,664,815.74

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

3,782,578.01

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

4,991,246.39

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

-1,208,668.38

---- Credit to Private Sector (CPS)

18,882,237.7

--Other Assets Net

-7,746,094.02

Reserve Money (Base Money)

5,758,634.07

--Currency in Circulation

1,811,090.48

--Banks Reserves

3,383,756.72 • Source - CBN

MANAGED FUNDS Initial Price (N) Stanbic Balanced Fund

Buying Price(N)

Selling Price

1,660.29

1,685.29

Stanbic IBTC NEF

1,000.00

11,002.32

11,326.67.11

Stanbic SIBond

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

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

OPEC DAILY BASKET PRICE AS AT 25 AUGUST 2016 The price of OPEC basket of fourteen crudes stood at $45.28 a barrel on Thursday, compared with $45.25 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

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MARKET NEWS

SEC May Sanction Operators over Complaint Management Framework Goddy Egene and Nosa Alekhuogie The Securities and Exchange Commission (SEC) has intensified efforts to implement the complaints management framework introduced last year, following slow compliance to the policy.

SEC had developed rules on complaints management in

February 2015 as part of efforts to restore investor confidence in the Nigerian capital market.

The rules outlined a new and more responsive complaint management framework that requires SEC, Self-regulatory Organisations (SROs) and capital market trade groups/ associations to establish fair, impartial and objective complaints management policies for the

T H E

handling of investor complaints.

This framework was expected to significantly improve dispute resolution within the market and ultimately reduce infraction rates as it streamlines the complaints management process.

However, the framework has not been complied with by market operators due to the inability of some trade groups to develop their respec-

N I G E R I A N

tive complaints management policies and of the refusal of the operators to register with trade groups.

In order to fully implement the framework, SEC has directed all capital market operators who are yet to be registered with their respective trade group/association to do so on or before October 31, 2016 unfailingly.

STO C K

The market regulator said failure to comply with the directive will attract appropriate actions.

According to the commission, the new directive followed resolutions at the recent Capital Market Committee (CMC) meeting in Lagos. SEC explained that it had been receiving the overwhelming majority of complaints from investors even

E XC H A N G E

when such complaints could be addressed more swiftly at trade group level.

But the need to overhaul the complaints management mechanism in the Nigerian capital market as provided the SEC Rules and Regulations, the commission decided to delegate key complaints management functions to market operators.

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CITYSTRINGS

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

Hard Times for Lagos Sand Miners Sand miners at the Bariga coastline of Lagos have been rendered jobless by a stop work order issued by the state government, Chineme Okafor reports

T

he first sign of trouble was a reported quarrel in the Oshinfolarin area of Bariga in Lagos, next was a stop work order and equipment evacuation demand made on about 65 sand miners operating on Bariga’s shoreline by the state government, then followed a quick response to the state’s action as well as a disagreement on its rights to enforce such order, by the federal authority, from then on, what reportedly started as a modest issue, became a tension that has defied good resolutions for over six months now.

It was in January 2016 that about 65 sand miners on the Bariga Lagos shoreline got the eviction notice from the state government. The order was swift and reportedly inconsiderate.

When it came, the state reportedly cited to a prior criminal incident in the community which threatened its security but which the Bariga community allegedly accommodated its perpetrators and provided them escape routes, as its reason for taking such action.

As claimed, it also premised the evacuation order on the perceived degradation of the ecosystem of the state through the activities of the dredging companies, it said it wanted them to stop and leave the shoreline and their means of livelihood.

But the miners responded to the allegations through their associations and the community – the United Sand Dealers Association; Best Sand Nigeria Limited and Ebute Ilaje Community. They denied the charges against them by the state, saying they were ‘victims of circumstances’ and that the government with its orders was foisting on them an economic hardship they will find very difficult to accept.

“Criminality and violence is a world problem, the United Sand Dealers Association, Best Sand Nigeria Limited and Ebute Ilaje Community Development Associates are all law abiding citizens, and none has ever had a criminal record,” they said in their letter to the state government pleading that the embargo on their mining activities be

Sand mining in Bariga supports families of operators

lifted by it, and a solution to the reported criminalities be collectively formulated.

While requesting that the state governor, Mr. Akinwunmi Ambode considers reversing the embargo on their operations, the miners said, “the directive to stop work has greatly affected us and our dependants.” They noted that six months with no means to earn a livelihood was harsh on them.

Similarly, their plea was followed by an April 15, 2016 memo of the federal Ministry of Mines and Solid Minerals Development to the governor in which he was reminded that the current constitution of the country does not confer on the state controlling rights over minerals mining in states of the country, and as such, its ban on sand mining on the Bariga shoreline was unlawful.

The federal memo stated that the country’s 1999 Constitution has in its exclusive legislative list reserved controls of minerals and mining activities within the country for the federal government as item 39 of its second schedule and as such it was wrong for the state to close down the operations of the miners. This has however not made the kind of impact the sand miners looked for.

However, by latching on to the reported incident that occurred around Oshinfolarin Street in Bariga to close down their operations, the sand miners said it was an overkill by the government and that this had continued even after they set up strategies to curb criminal activities in and around Ebute Ilaje

Most of sand miners are young men with good energy

And so, when their petition got to THISDAY, it quickly reminded the state of a recent revelation by the Nigeria Extractive Industries Transparency Initiative (NEITI) that sand and not gold or any of the celebrated precious stones buried underneath Nigeria’s earth was bringing more money into the pockets of governments in the country.

NEITI’s unexpected disclosure was contained in the audit report it prepared and published to show the extent of activities in Nigeria’s solid minerals sector in 2013. The report traced how much money was paid to Nigeria as royalty for the mining of her solid mineral within that year.

In the report, NEITI said 5.8 per cent of

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CITYSTRINGS

These sand miners have been asked to leave their base

A NEITI Report said sand gave the government more money than gold in 2013

To further buttress their claims of being victims of circumstances, the sand miners also noted in another correspondence with the secret service that they had nothing to do with the allegations of criminal acts against them by the state, adding that the site of the incident which got them the ban was far away from the waterside where they operated from Ambode...should intervene urgently

Nigeria’s solid mineral production came from sand dredging, while just about 0.4 per cent came from gold. It noted that going by the value of royalties paid by people who mined sand, Nigeria got more money from it than it got from gold.

It also said this was possible because more people were involved in mining of sand than

they were in gold. These people perhaps included the Bariga shoreline sand miners who Lagos has kept away from their work for about six months now.

However, by latching on to the reported incident that occurred around Oshinfolarin Street in Bariga to close down their operations, the sand miners said it was an overkill by the government and that this had continued even after they set up strategies to curb criminal activities in and around Ebute Ilaje.

They also reminded the state that its embargo on their operation was not entirely in its interest considering the temptations associated with the idleness the order has with it.

According to them, closing down their operations also meant that men who have operated their sand mining businesses for years now, are faced with the prospects of not returning back to their means of livelihood if the embargo remains without a resolution.

To further buttress their claims of being victims of circumstances, the sand miners also noted in another correspondence with the secret service that they had nothing to do with the allegations of criminal acts against them by the state, adding that the site of the incident which got them the ban was far away from the waterside where they operated from.

They equally made a pledge to observe and report criminal acts within the community to the secret service, in their effort to come clean from the state’s allegation.

But even with their pledges to community vigilance and request to be reinstated to their mining operation, a June 2014 official correspondence from another federal authority relevant to their operations – the National Inland Waterways Authority (NIWA) which THISDAY obtained, seemed to have questioned the action of the government.

The NIWA memo to the Dredgers As-

sociation of Nigeria said a judgement of a Lagos Federal High Court delivered by Justice J. T. Tsoho and the Nigerian Maritime Administration and Safety Agency (NIMASA) the proper and lawful agencies to control their commercial activities and not the agencies of Lagos.

NIWA also asked the miners in the 2014 memo not to engage in any commercial dealings with either the Lagos State Waterways Authority (LASWA) or its Ministry of Waterfront Infrastructure Development who Tsoho’s judgement reportedly restrained from engaging directly with them.

Now caught in between a very delicate web of legalese and rights of regulation, as well as Lagos’s desire to clampdown on criminality within its terrain, Bariga’s sand miners said the actions of the state has excluded them from economic opportunities for more than six months. They thus want a quick resolution and return to work.

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INTERNATIONAL

email:foreigndesk@thisdaylive.com

Italy: Earthquake Death Toll Exceeds 240 Rescue efforts continue

Zacheaus Somorin with agency reports The death toll in the Italian earthquake stands at 240 as rescuers continue efforts to find

survivors. Dozens of people are believed trapped in ruined Amatrice, Accumoli and Pescara del Tronto, in mountainous central Italy.

There have been hundreds

of aftershocks since the quake struck, hampering relief efforts and damaging already unstable buildings. More than 4,300 rescuers are using heavy machinery and their bare hands.

Iran Vessels Intercept US Ship Four of Iran’s Islamic Revolutionary Guard Corps (IRGC) vessels “harassed” a U.S. warship on Tuesday near the Strait of Hormuz, a U.S. defense official said, amid Washington’s concerns about Iran’s posture in the Gulf and in the Syrian civil war.

The official, speaking on the condition of anonymity, said on Wednesday that two of the Iranian vessels came within 300 yards of the USS Nitze in an incident that was “unsafe and unprofessional.”

The vessels harassed the destroyer by “conducting a high speed intercept and closing within a short distance of Nitze, despite repeated warnings,” the official said.

IRGC, the Islamic Republic’s praetorian guard, is suspicious of U.S. military activity near Iran’s borders and appears to be sticking to a familiar posture in the Gulf that predates last year’s nuclear accord between Iran and six world powers,

including the United States.

The United States and other countries are concerned about Iran’s support for Syrian President Bashar al-Assad, its ballistic missile program, and its backing for Shiite militias that have abused civilians in Iraq.

The U.S. defense official said that in Tuesday’s incident the USS Nitze tried to communicate with the Iranian vessels 12 times, but received no response. It also fired 10 flares in the direction of two of the Iranian vessels.

“The Iranian high rate of closure... created a dangerous, harassing situation that could have led to further escalation, including additional defensive measures by Nitze,” the official said.

USS Nitze had to change course in order to distance itself from the Iranian vessels, the official said, adding that the incident could have led to a diplomatic protest, but the United States does not have

diplomatic relations with Iran.

It remains to be seen whether these actions were carried out by rogue Revolutionary Guard commanders or sanctioned by senior officials in Tehran, said Karim Sadjadpour, an Iran expert at the Carnegie Endowment for International Peace.

“For four decades the Revolutionary Guard have been told that America is the greatest threat to the Islamic Revolution,” said Sadjadpour. “This institutional culture hasn’t changed after the nuclear deal,” he added.

In January, 10 U.S. sailors aboard two patrol craft were detained by the IRGC when they inadvertently entered Iranian territorial waters. They were released the next day after being held for about 15 hours.

The Gulf separates Iran from its regional rival Saudi Arabia and a U.S. naval base in Bahrain.

Rescuers have advised journalists and bystanders to leave Amatrice urgently, as “the town is crumbling”, according to the BBC. Another powerful aftershock struck the town on Thursday afternoon, sending a huge dust cloud into the air. Many of the earthquake’s victims were children, the health minister said, and there were warnings the toll could rise further.

The heaviest death toll was in Amatrice - 184, officials said. Another 46 died in Arquata, and 11 in Accumoli. A further 264 people have been treated in hospital. Officials revised down the number of dead after earlier giving a figure of 247.

The 6.2-magnitude quake hit at 03:36 (01:36 GMT) on Wednesday 100km (65 miles) north-east of Rome.

“We are sleeping in the car and there were shocks all night.

When the biggest one came, the car started moving and shaking,” said Monica, a survivor from Amatrice.

Two firemen burrowed deep into the rubble looking for a survivor.

“It’s a dog,” one of them shouted out. For half an hour the men kept digging. They passed water down to be given to the animal.

And eventually they worked it free, then emerged, carrying it to the surface. There was a ripple of

congratulations through the crowd.

“It doesn’t matter to us if it’s a person or an animal, we save it,” said Gianni Macerata, the fire officer in charge. So the digging goes on. But so little is left of Pescara del Tronto it is unlikely that more survivors will be found here. It seems unlikely too that this ancient little place, that has stood for centuries, can ever be rebuilt.

Hundreds of years of history ended in an instant.

A tented camp has been set up, as so many buildings are now unsafe.

Prime Minister Matteo Renzi was chairing an emergency cabinet meeting on Thursday. The agenda included reconstruction plans for the devastated area. Rescuers said they had pulled five bodies from the ruins of the Hotel Roma in Amatrice. As many as 70 tourists were staying at the hotel when the quake struck. Many are feared to be in the rubble, though several were pulled out and given medical care.

Many of those affected were Italians on holiday in the region.

Some were in Amatrice for a festival to celebrate a famous local speciality - amatriciana bacon and tomato sauce. Late on Wednesday there were cheers in the village of Pescara del Tronto when a young

girl was pulled alive from the rubble after being trapped for 17 hours. Almost all the houses there had collapsed, the mayor said.

Among the victims was an 18-month-old toddler, Marisol Piermarini, whose mother Martina Turco survived the deadly 2009 earthquake in L’Aquila and moved away from there after the experience, Italian news agency Ansa reported.

Ms Turco was being treated in hospital after being pulled from the rubble in the village of Arquata del Tronto, Ansa said. The mayor of Amatrice said three-quarters of the town had been destroyed and no building was safe for habitation.

The country is no stranger to earthquakes - the 2009 L’Aquila tremor killed more than 300 people and in May 2012 two tremors nine days apart killed more than 20 people in the northern Emilia Romagna region.

Earthquakes are an ever-present danger for those who live along the Apennine mountain range in Italy.

Through the centuries thousands have died as a result of tremors equal to, or not much bigger than, the event that struck in the early hours of Wednesday. The modern response, thankfully, has been more robust building and better preparation.

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Nigeria’s top 50 stocks based on market fundamentals

26-Aug-16

25-Aug-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

01 Dangote Cement Plc

173.50

172.00

0.87%

2,956,528,034,767.50

9.56

18.15

5.46

4.61%

4.35

02 Nigerian Breweries Plc

140.00

140.65

-0.46%

1,110,074,124,320.00

4.50

31.14

3.71

2.57%

6.82

03 Guaranty Trust Bank Plc

26.29

26.25

0.15%

773,745,701,798.96

4.20

6.26

2.16

6.73%

1.71

825.00

825.00

0.00%

653,941,407,900.00

19.41

42.50

3.94

3.52%

18.59

05 Zenith Bank Plc

15.30

15.30

0.00%

480,366,354,925.80

3.10

4.94

1.15

11.76%

0.77

06 Lafarge Africa Plc

58.00

58.00

0.00%

264,184,304,980.00

-6.71

-8.64

1.19

5.17%

1.89

177.00

177.00

0.00%

230,539,155,231.00

4.22

41.94

1.56

1.95%

5.38

11.35

11.35

0.00%

208,267,406,290.25

0.23

49.40

0.38

5.46%

0.35

09 Access Bank Plc

5.60

5.67

-1.23%

161,996,641,133.60

2.56

2.19

0.47

9.82%

0.38

10 United Bank for Africa Plc

4.44

4.45

-0.22%

161,081,096,869.68

1.65

2.70

0.53

13.51%

0.46

40.49

36.96

9.55%

160,764,615,552.05

0.54

75.49

2.31

3.21%

3.93

275.00

275.00

0.00%

152,160,336,075.00 -14.43

-19.06

1.63

5.79%

0.40

04 Nestle Nigeria Plc

07 Forte Oil Plc. 08 Ecobank Transnational Incorporated

11 Presco Plc 12 Seplat Petroleum Dev. Co. Ltd 13 Unilever Nigeria Plc

39.75

38.58

3.03%

150,386,025,937.50

0.46

85.96

2.47

0.13%

16.88

14 Stanbic IBTC Holdings Plc

14.50

14.10

2.84%

145,000,000,000.00

2.04

7.12

1.23

0.69%

1.29

15 Guinness Nig Plc

93.50

93.50

0.00%

140,800,545,578.00

3.70

25.29

1.25

0.00%

3.17

16 FBN Holdings Plc

3.03

3.10

-2.26%

108,762,737,159.76

0.30

9.94

0.22

4.95%

0.18

241.92

241.92

0.00%

82,137,122,807.04

31.13

7.77

0.34

5.79%

3.89

6.51

6.50

0.15%

78,120,000,000.00

1.05

6.20

0.65

7.68%

1.31

113.00

113.00

0.00%

72,386,711,019.00

3.75

30.15

0.81

1.95%

2.81

20 International Breweries Plc

19.76

19.76

0.00%

65,094,365,772.80

0.17

113.27

2.61

1.27%

5.28

21 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

5.00

5.10

-1.96%

60,173,094,470.00

-3.46

-1.44

0.32

15.00%

0.44

162.65

162.65

0.00%

58,650,819,364.30

17.69

9.19

0.71

4.43%

3.41

20.01

20.00

0.05%

52,510,986,111.87

6.81

2.94

0.14

10.00%

0.52

1.16

1.16

0.00%

44,916,357,013.00

-0.37

-3.11

0.99

0.00%

0.59

26 U A C N Plc

20.50

19.90

3.02%

39,377,719,933.50

2.44

8.40

0.55

4.88%

0.53

27 Okomu Oil Palm Plc

36.00

36.25

-0.69%

34,340,760,000.00

4.60

7.83

2.79

0.28%

2.21

28 Sterling Bank Plc

1.02

1.03

-0.97%

29,366,226,488.52

0.31

3.30

0.28

8.82%

0.35

29 Fidelity Bank Plc

0.97

0.97

0.00%

28,093,708,121.24

0.39

2.49

0.19

16.49%

0.15

30 Cadbury Nigeria Plc

14.00

14.00

0.00%

26,294,828,560.00

0.83

16.95

0.95

9.29%

2.12

31 Diamond Bank Plc

1.12

1.11

0.90%

25,939,635,644.16

0.11

10.15

0.12

0.00%

0.11

32 Wema Bank Plc

0.64

0.67

-4.48%

24,687,658,291.84

0.06

10.15

0.50

0.00%

0.52

33 Custodian And Allied Insurance Plc

3.90

3.85

1.30%

22,939,270,360.50

0.76

5.13

0.69

3.59%

0.82

34 Glaxo Smithkline Consumer Nig. Plc

18.51

18.60

-0.48%

22,135,673,792.88

-2.54

-7.29

0.76

1.62%

2.42

35 FCMB Group Plc

1.08

1.13

-4.42%

21,386,927,643.48

0.61

1.76

0.13

9.26%

0.12

36 National Salt Co. Nig. Plc

8.00

8.23

-2.79%

21,195,507,024.00

0.89

9.03

1.17

6.88%

3.07

30.09

28.66

4.99%

21,063,000,000.00

2.36

12.76

3.03

3.82%

14.43

38 Mansard Insurance Plc

2.00

2.00

0.00%

21,000,000,000.00

0.27

7.36

1.09

2.50%

0.99

39 PZ Cussons Nigeria Plc

18.20

18.20

0.00%

18,200,000,000.00

4.14

4.39

1.37

0.55%

0.54

40 Honeywell Flour Mill Plc

1.36

1.30

4.62%

10,785,068,814.88

-0.40

-3.36

0.22

11.76%

0.66

41 Continental Reinsurance Plc

0.98

0.94

4.26%

10,165,289,425.76

0.33

2.98

0.49

12.24%

0.52

42 Unity Bank Plc

0.84

0.84

0.00%

9,819,043,871.28

0.54

1.55

0.15

0.00%

0.11

43 Skye Bank Plc

0.59

0.59

0.00%

8,189,377,831.90

-2.93

-0.20

0.05

50.85%

0.08

44 Cement Co. Of North.Nig. Plc

6.00

6.00

0.00%

7,540,066,596.00

0.44

13.54

0.68

1.67%

0.70

45 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,126.00

0.11

4.62

0.88

6.00%

0.43

46 UACN Property Development Co. Limited

3.53

3.53

0.00%

6,067,187,482.35

-0.05

-67.70

1.80

19.83%

0.17

47 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

48 Nigerian Aviation Handling Company Plc

3.40

3.40

0.00%

5,522,343,750.00

0.15

22.05

0.69

5.88%

0.89

49 AIICO Insurance Plc

0.62

0.64

-3.13%

4,296,726,777.60

0.26

2.38

0.13

8.06%

0.45

50 Fidson Healthcare Plc

1.70

1.70

0.00%

2,550,000,000.00

0.31

5.55

0.38

2.94%

0.40

17 Total Nigeria Plc 18 Dangote Sugar Refinery Plc 19 7-Up Bottling Comp. Plc

22 Oando Plc 23 Mobil Oil Nig Plc 24 Flour Mills Nig. Plc 25 Transnational Corporation Of Nigeria Plc

37 Cap Plc

TOTAL

8,869,775,000,815.00

TOTAL MARKET CAP

9,403,629,017,199.11

% OF MARKET CAP Annotation - MA* = Simple Moving Average

94.32%

Table 1 Market Statistics Mkt Indicators NSE All Share Index NSE Market Cap (N'Trillion) Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Open 25-Aug-16

Close Change % 26-Aug-16

27,379.95 9.40

27,450.91 9.43

0.26 0.26

113.43 8.83

113.92 8.87

0.43 0.43

Table 3 Top 5 Gainers Stock

Open Close Change 25-Aug-16 26-Aug-16 %

Presco Plc Cap Plc Honeywell Flour Mill Plc Continental Reinsurance Plc Unilever Nigeria Plc

36.96 28.66 1.30 0.94 38.58

40.49 30.09 1.36 0.98 39.75

9.55 4.99 4.62 4.26 3.03

Table 4 Top 5 Losers Stock

Open Close Change 25-Aug-16 26-Aug-16 %

Wema Bank Plc FCMB Group Plc AIICO Insurance Plc National Salt Co. Nig. Plc FBN Holdings Plc

0.67 1.13 0.64 8.23 3.10

0.64 1.08 0.62 8.00 3.03

-4.48 -4.42 -3.13 -2.79 -2.26

NSE ASI moves northward by 0.26% Market pulse on the Nigerian Stock Exchange (NSE) today – Friday, August 26, 2016 was bullish as the market closed green today despite investors’ caution towards bargain positioning.

This was despite the negative performances from the NSE sub-sectors: Banking, Consumer Goods and Oil & Gas (Save Insurance). Trading activities increased in volume as 279.56 million shares worth N3.70 billion in 3,255 deals exchanged hands today. This is an increase from the 215.34 million shares worth N1.42 billion in 2,939 deals exchanged on Thursday.

Topping in volume terms was Dangote Sugar Refinery Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc while Zenith Bank Plc and Guaranty Trust Bank Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed positive with a 0.26% (+70.96) increase to close at 27,450.91 from 27,379.95 the previous trading day. Market Capitalization depreciated in tandem to N9.43 trillion from N9.40 trillion of prior trading day. Similarly, the Thisday BGL 50 Index also followed suit with an increase of 0.43% to close at 113.92 from 113.43 recorded at the end of the previous trading day, while its market capitalization stood at N8.87 trillion from N8.83 trillion of the previous trading day.

A total number of 15 stocks gained on the bourse today while 15 stocks declined, 69 leaving stocks unchanged. Presco Plc emerged the day’s toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 9.55% to close at N40.49 per share. It was followed by Cap Plc with a gain of 4.99% to close at N30.09 per share. Others on the gainers list include: Honeywell Flour Mill Plc, Continental Reinsurance Plc and Unilever Nigeria Plc, while on the decliners’ list; Wema Bank Plc led with a loss of 4.48% to close at N0.64 per share. It was followed by FCMB Group Plc with a loss of 4.42% to close at N1.08 per share. Others on the losers list include: AIICO Insurance Plc, National Salt Co. Nig. Plc and FBN 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

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FG Insists Unemployed Nigerians Must Register to Benefit from Social Intervention Scheme Paul Obi and Marvellous Okeke in Abuja The federal government yesterday insisted that all unemployed Nigerians must register online before they can benefit from any its Social Intervention Scheme (SIS), as registration is now mandatory for job seekers and other empowerment programmes.

The Minister of Labour and Employment, Senator Chris Ngige, stated this at the weekend while flagging off the National Directorate of Employment (NDE) School-toWork Programme in Calabar, the Cross River State capital.

He spoke against the backdrop of different agencies of government laying claim to the ownership of the programmes, a move that might isolate the Ministry of Labour and Employment.

The minister urged all unemployed Nigerians to register at the online job portal of the SIS of the federal government in order to benefit from the different categories of the programmes which government is offering.

“Unfortunately as we speak, by last week, the portal has only recorded about 1.2 million persons.

We expect more persons to have

been registered in the portal before our screening exercise. The portal closes 31st August 2016 which is just few days away,” Ngige said.

“For those who are not computer literate, we advise the state governments to encourage them by using local government chairmen to move into local government areas and register the unemployment persons there so that they can qualify to be considered for the scheme. Each state of the federation is expected to recruit about 1,500 persons.”

Speaking on the team of the School-to-Work programme, which he summarised as an expression of a renewed vigour by the ministry under him to catch them young, Ngige said it was also a bold attempt to build a future Nigeria where white-collar jobs would be unattractive.

“We are building a generation of Nigerians where creative thinking, self-confidence and dignity of labour will challenge the prevailing unemployment scourge. We are building a generation of Nigerians who will not only create wealth with their hands but are proud employers with skills from hands that God has given them.

“This is a two-month vacation

creative job learning scheme for students in JSS 1 to SSS 2 classes.

It is meant to provide them with skills early in life so that they can graduate and earn a living if they wish not to continue after secondary education or have an income earning skill to fall back on while doing higher education.

This set of students will graduate to higher skills training the next vacation while others succeed them. By this, we are re-thinking a university education system where graduates fold hands and wait for food on their table,” Ngige said.

The minister disclosed that a total of 150 persons would be trained yearly from each of the states of the federation under the scheme which has Calabar, Anambra, Bauchi, Katsina, Kogi and Ondo as the headquarters for the six zonal training centres.

Ngige added that the programme was built with enough provision for decent work in line with the International Labour Organisation (ILO) so as to foreclose the possibility of child labour in the course of training and after.

The registration on the portal, Npower.ng.org) ends this week.

LASG to Enforce Original Masterplan of Ikoyi, Lekki,VI Gives 14-day ultimatum to owners of illegal structures, street hawkers Gboyega Akinsanmi The Lagos State Government yesterday disclosed its plans to restore the original masterplan of Ikoyi, Lekki and Victoria, noting that it would no longer tolerate the distortion of the plan.

The state government also asked all the owners of illegal structures, shanties, kiosks and trading points and food courts in Ikoyi, Lekki and Victoria Island to vacate them within of 14 days.

The warning was conveyed in a statement by the Secretary to the State Government (SSG), Mr. Tunji Bello, noting that the administration of Governor Akinwunmi Ambode “is determined to restore the original masterplan of Ikoyi, Victoria Island and Lekki.

As contained in the statement, Bello said the state government would check the activities of roadside automobile repairers who had converted dual carriage lanes

to single lanes with indiscriminate packing.

He said those who converted walkways into trading points and food courts in Ikoyi, Victoria Island and the Lagoon Front of Lekki to remove such illegal structures on or before September 10.

He said the state government “will no longer tolerate unauthorised parking of vehicles, trucks and unsightly state of drainage infrastructure. Owners of such vehicles and properties with unkempt drainages will be prosecuted.”

He explained that it was totally unacceptable for people “to stockpile and display wares such as bags of charcoal on major Roads like Ahmadu Bello Way and Federal Secretariat Road, Ikoyi. Henceforth, such goods will be confiscated and the owners prosecuted.

“We are using this medium to sensitize residents of the affected areas who are involved in these

illegalities to immediately take right action and do the needful as the state government will take the necessary steps to enforce its environmental and sanitation laws forthwith.

“All those engaging in roadside display of wares, street trading and all illegal squatters on undeveloped land and all those who have converted road median to commercial uses in Ikoyi, Victoria Island and Lekki are being advised in their own interest to put a stop to the illegalities.”

The state scribe warned that if such illegal structures “are not removed after the 14 days grace, the state Special Task Force on the Clean-up of the areas would move in to enforce the laws.

“The owners of all the illegal structures, shanties and abandoned buildings among others to comply or have the State Special Task Force on the Clean-up of the areas to contend with,” Bello said.

LEAD Set to End Projects in Rivers The Leadership Empowerment Advocacy and Development (LEAD), a local governance project, will hold an end-of-programme review in Rivers State tomorrow.

The event themed: ‘Documenting, Learning and Sharing from LEAD Partnership Project,’ is expected to be a highlevel state event with participation from the state and local government councils, as well as the funding partners.

LEAD in a statement signed by its Communications Manager, Mr. Boniface Kassam, said the essence of the review is

to provide a platform to share and brainstorm about the LEAD project milestones as well as highlight lessons learnt and best approach to employ for the benefit of related future projects.

He stated that the LEAD project co-funded in Rivers State by the United States Agency for International Development (USAID) and the Foundation for Partnership Initiatives in the Niger Delta (PIND) is currently being implemented in Bauchi and Sokoto States by RTI International and its implementing partner, Plan International.

The statement read: “We have

spent the last two years in Rivers state where we have worked to improve the capacity of local government councils; mold fiscal transparency and accountability laws in the local government council; enhance the capacity of those various organisations working within this area that the project is focused on and improve service delivery to the people of the local government area and by extension the state and the country generally.

“Before extending our work to Rivers State, USAID provided funding for us to implement LEAD in Sokoto and Bauchi.”

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IPOB Accuses DSS of Secretly Killing Its Members Emmanuel Ugwu in Umuahia and David-Chyddy Eleke in Awka The Indigenous People of Biafra (IPOB) has accused the Department of State Services (DSS) of secretly killing its members.

The group said DSS had started a house-to-house search for its members where officials of the agency fish out and kill its members at random.

This was stated in a statement sent to journalists and signed by the group’s spokesperson, Mr. Emma Powerful.

In the release, it condemned the incessant arrest of its members.

Part of the statement read: “The security agents and the Nigeria secret police the DSS have started going round the cities of Biafra land arresting those suspected to be members of IPOB. “We wondered why the federal government will be calling for negotiation and still sending the security agents to be going house to house to search for the members of IPOB and killing them secretly without traces.”

In one of the instances, IPOB said: “The DSS and other security agents went to the house of the IPOB members and arrested one Mr. Chukwu Obasi Sunday who is living in Nnewi Ichi in Nnewi North Local Government Area

of Anambra State, this was at an odd hour.

“They arrested and shot him on his legs and now detained him with bullets wounds in DSS cell.”

They also accused the DSS for being responsible for the death of one Chidiebere Onwudiwe, the national coordinator of IPOB in Biafraland and Justice O. Ude who were arrested three months ago.

“They have not been taking them to court, and nobody has seen or heard from them, we are sure they have been killed by the DSS, if they are still alive the DSS would have been taking them to court or released them on bail as they committed no crime against the government of Nigeria.”

IPOB added: “We are crying to the entire world to come for our rescue because the Nigeria government and her security agencies programmed the strategy to be going house to house search arresting and stifling lives out of the members of IPOB. “We also use this medium to inform the whole world the torture and intimidation our members are under going in the hands of the Nigerian government and her security agents that prompted the untimely death of most of our members.”

Also, IPOB alleged that the federal government has resorted

N5,000 Tax Enough to Save a Child from Malaria Death, Says Fowler Five thousand naira may seem too little to do a buffet at the Transcorp Hilton Hotel in Abuja or at the Eko Hotels and Suites in Lagos, but a tax of N5,000 is enough to save the a child who has malaria from death, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler, has said.

Fowler made the statement in Accra at the annual tax conference of the Chartered Institute of Taxation, Ghana, (CITG) where he also received an award as an honorary Fellow of CITG for his contributions to the tax institute.

Fowler, who delivered the lead paper at the conference titled: ‘Strategies for Revenue Mobilisation in Contemporary Times: Challenges in Tax Legislation,’ said his success in establishing a connect between tax contribution of as little as N5,000 and the life of a child who might die from malaria, touched the hearts of some taxpayers in Lagos who turned a new leaf and became compliant taxpayers.

He told tax practitioners and administrators from Ghana, Sierra Leone, Nigeria, Cote D’Ivoire and other parts of the West African sub-region that beyond deploying the law, enforcement, technology and mobilisation, tax administrators must deploy a medley of psychology, persuasion and being firm to convince their fellow countrymen to pay tax and fund their country’s development.

According to him: “When you ask people to pay tax, they ask you: “Why? But when you tell them that a tax of N5000 is enough to save a child from dying from malaria, their attitude about tax will begin to change gradually. As a tax administrator, you have to become a teacher.

“The point is that as tax administrators, we must see the

work that we do, not just as another job, but as nation building. Tax collection is nation building. It is serving your nation. It is serving God. When you convince a taxpayer that the tax he/she pays could save the life of a child who has malaria from death, you could begin to touch the taxpayer’s heart.

“We can still do a lot with the laws we have now. Before the law changes, tax administrators need to wear the hat of a teacher, a psychologist, a friendly person and a firm upholder of the law.

“I urge all of us stakeholders to be conscious of our roles in ensuring that Africa catches up with the rest of the world in moving away from dependence on resource revenue towards dependence on taxation as the primary source of funding for our development.

The FIRS Executive Chairman noted that in 2015, South Africa collected $57 billion. Nigeria with its oil wealth and population of over 140 million people and about 60 million taxable citizens, collected $27 billion.

The FIRS chairman noted that it was curious that no member of the Organisation of Petroleum Exporting Countries (OPEC) - with all their wealth - is in the league of developed countries.

Today, he noted, Venezuellans queue for food. “It can be argued that the extent to which an economy is able to grow sustainably and develops depends to a large extent on its ability to generate tax revenue to finance its expenditure and the efficiency if its tax system.

Even in Nigeria, oil, gas and mining sector (6.48) is not the biggest contributor to the Gross Domestic Product of $422.59 billion dollars. The sector, he noted, takes the third place after trade (19.15) and agriculture (19.0).

to exploiting the abundant army of unemployed, hungry youths in the land in order to undermine the cause of Biafra self-determination by creating imaginary IPOB factions.

At the last count no fewer than two groups (TRIPOB, RIPOB) have reportedly emerged from no where claiming to be splinters of IPOB with one of them repudiating all that the organisation stands for while the other said that it had sacked the detained IPOB leader, Mazi Nnamdi Kanu.

But in a statement signed by its spokespersons, Emma Nmezu and Dr Clifford Iroanya, IPOB said what is currently playing out is the replication of “the hunger games”

in Biafra as “hungry and jobless hirelings “are being sponsored to pose as members of IPOB.” “The latest session in Buhari’s ‘Hunger Games’ is the sponsoring of nondescript individuals and even using non-existent names to come up with acronyms that have “Biafra“ in them. Within 24 hours Buhari has sponsored three different groups all claiming headship or ownership of IPOB. One of the groups even boasted that they have sacked the leader of IPOB, Kanu. This is becoming comical and ludicrous. Buhari and DSS have descended so low that they now take advantage of jobless youths and engage them in Hunger

Games.

“Because there is hunger in Nigeria and there is no shortage of hungry and jobless youths enough to do anything, Buhari requires them to do his bidding especially in experimenting in ‘Hunger Games’ in Biafraland.

“In a country where a woman cannot cook a pot of soup without deploying a security guard, getting riff-raffs to sign up to anything doesn’t require much effort. That is why we have miscreants today claiming to have sacked the leader of IPOB, Nnamdi Kanu,” IPOB said.

The Biafra organisation further stated that the reason why the

federal government and the DSS have resorted to creating phony groups in the name of IPOB was to divert attention from the murderous exploits of Fulani herdsmen.

According to IPOB, it was able to glean from its intelligence network that creating “one new IPOB fake group per day is to cause distraction from the natural public outcry and possible reprisals” following the latest herdsmen attack at Enugu State.

“We have confirmed that the slaughter was meant to happen on Tuesday night August 23, 2016.

Because IPOB is a huge newsmaker people will be drawn away from the slaughter to focus on IPOB.

HONOURED FOR HARD WORK

President, Chartered Institute of Taxation, Ghana (CITG), Mr. Nii Ayi Aryeetey (left), presenting a Certificate of Honorary Fellow of CITG to Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, at the sixth annual international tax conference in Accra, Ghana....weekend

Lagos Rocks Nothinghill Carnival Love Lagos campaign peaks in London The sound and sight of Lagos will today dominate the popular Nothinghill Carnival in London as the #LoveLagosWeekend campaign enters day three.

To this end, the popular Nigerian Corner on Adelaja Street at Nottinghill carnival will today transform to Lagos Corner courtesy of the Lagos branding campaign by the Lagos State Government that has taken the city of London by storm since weekend.

The #LoveLagosWeekend started on Saturday with a town hall meeting and media parley addressed by Lagos State top officials and continued on Saturday evening at I Laugh with MC Abbey and the Love Lagos Crack Ya Ribs with Julius Agu on Sunday.

Promoter of the Lagos Corner, Mr. Ayo Sonaiya said Monday’s event coincides with the Nothinghill Carnival’s 50th edition.

“We are happy that at a time that Lagos State is counting down to its 50th anniversary, the administration of Governor Akinwunmi Ambode is using the huge platform of Nothinghill Carnival, which is also celebrating its 50th edition this year to reach out to millions of Nigerians and Lagosians in particular about the emerging powerful brand that Lagos has become in the areas of arts and entertainment and in connecting with the Diaspora about the great

things being recorded in Lagos,” he said.

The Lagos Corner will provide a veritable platform for performing artistes from Lagos State to showcase their talents and further give verve to Brand Lagos as the home of creativity.

The #LoveLagosWeekend, according to the State’s Commissioner for Information and Strategy, Mr. Steve Ayorinde, is a three-day event designed to communicate the Lagos tourism brand initiative to the world.

“The master brand for Lagos tourism initiative is One Lagos, which speaks to the oneness, multicultural nature and unity in diversity of the state. It’s an initiative that has taken shape in the state. But the slogan for that brand initiative is Love Lagos, which is our way of urging the world to take note and connect with us.”

He added that the Love #LoveLagosWeekend in London was also in sync with the government’s plan to celebrate Lagos on the 27th day of every month till May 27, 2017 when Lagos will celebrate its 50th anniversary as a state.

“London and Lagos have a long rich history and choosing to start the global brand awareness campaign for Lagos in London is the right thing to do given the huge number of Lagosians and Friends of Lagos that reside and work there, “ the commissioner stated.

Judiciary Workers Declare Oshiomhole Anti-workers’ Governor Paul Obi in Abuja

no pay, 18 months for local government workers, 42 months Workers under the aegis of Judiciary arrears of pension and gratuities Staff Union of Nigeria (JUSUN) is saying it is a criminal breach yesterday descried Edo State of contract for employer not to Governor, Adams Oshiomhole, pay workers’ salaries, what a as anti-workers’ governor bent on hypocrisy.

“It is sad that Oshiomhole enslaving workers in the state only to turn round and castigate other who is a product of court himself will go against a court order, governors for the same reason.

The workers said Oshiomhole instructing him to respect the has continue to display high level provision of the constitution, even of ‘hypocrisy’ by using legal when he did not appeal against provisions as a ‘shield’ to protect the judgment,” Adamu stated.

He said the union is determine to himself and as a ‘sword’ to fight ensure independent of the judiciary the poor workers.

They stressed that a situation in accordance with the judgment where governors won’t pay of Federal High Court, Abuja.

The JUSUN boss observed that salaries as stipulated by law, and when workers embark on the union intend to approach the strike and no work, no pay is same court to apply for an action employed, would not promote against state governors defaulting industrial harmony in the country. joint account.

According to Adamu, both The National President of JUSUN, Marwan Adamu, government and private sector who spoke during the third employers today breach the national delegates conference labour law, regulation and of the union in Katsina, however order, while ignoring section advocated that no work, no pay 15 of the labour act, CAP L1, be expunged from the Trade law of federation, 2014. The Act says “wages shall become due Dispute Act. Adamu explained that this and is payable at the end of each was necessary because such period for which the contract provision negates the whole is expected to subsist, that is essence of collective bargaining, to say daily, weekly or at such social dialogue and of course other period as may be agreed upon provided that where the increase productivity.

“I read in the dailies where period is more than one month, a state governor who owes my the wages shall become due and members seven months salaries, payable at intervals not exceeding on the pretence of no work, one month.”

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MONDAYSPORTS

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

Rohr Deposits Eagles Contract with FIFA, German Embassy Camp opens for Tanzania clash today

Olawale Ajimotokan in Abuja Super Eagles coach Gernot Rohr has lodged copies of his contract agreement with the International governing body, FIFA and the German Embassy in Abuja, THISDAY understood last night.

The 63-year-old coach, a former development officer with German Football Association (DFB), was early this month, offered a two-year deal by the Nigeria Football Federation (NFF) to steer the Super Eagles to the 2018 World Cup in Russia.

The coach is understood to be employed on $48,000 per month salary and will aim to make an immediate impact when Nigeria tackle Tanzania in Uyo on September 3, in an Africa Cup of Nations fixture that amounts to a mere window dressing.

His credentials will, however, be touted when the Eagles visit Zambia in a FIFA World Cup qualifier in Ndola on October 8.

According to sources, Rohr, who has worked at club level in France, Austria, Switzerland and Tunisia before coaching Gabon (2010-2012) and the Niger (2012-2014), complied with advice of his agents by domiciling copies of his contract with the German Embassy in Abuja and the international football governing body headquarters in Zurich.

The move is a safety net that will guarantee his interests by making a third party, notably FIFA to intervene in the future if he is embroiled in unresolved contract disputes with the Nigerian federation.

It is believed that FIFA can mediate between the parties if the disputes are complex given it is already in possession of the contract’s paperwork.

NFF is famed for causing high profile feuds with coaches it engages over matters concerning breaches of agreed contract.

National U-23 coach, Samson Siasia, whose team won the bronze medal at the Olympic Games in Rio, only at the weekend, severed ties with NFF, citing failure to pay five months salaries on top of acrimonious relationship he had with authorities during the games.

The NFF and its immediate past national coach, Sunday Oliseh, still occasionally trade tirades about allegations bothering on outstanding salaries to the former international midfielder and his assistants.

Oliseh, who caused a stir by ditching the team few days before crucial Africa Cup qualifying fixtures against Egypt in March, claimed he and his assistants, Tijjani Babangida and Jean Francois Losciuto were owed salaries and medical bills.

3SC’ s Sunday Adetunji (left) attempting to dash pass a Kano Pillars’ player..yesterday. 3SC won 4-0 He also alleged that he incurred $4,000, his personal money, as feeding expenses on the Home based national team when the team camped in Pretoria, before the African Nations Championship (CHAN) in Rwanda.

At the time they died in June,

both Stephen Keshi and Shaibu Amodu, were still owed by NFF for services rendered as national coach and technical director of the federation respectively.

Meanwhile, Eagles will open camp in Uyo, capital of Akwa Ibom State today for

Saturday’s 2017 Africa Cup of Nations qualifying match against Tanzania.

Home –boys Emmanuel Daniel, Ikechukwu Ezenwa (goalkeepers) and Jamiu Alimi (defender) are expected in Uyo today alongside a number of overseas –based professionals,

lmc media

including defender William Troost-Ekong and forward Odion Ighalo.

Team captain Mikel John Obi, fresh from leading the Nigeria U23 to Olympic bronze in Brazil, is expected to arrive at the team’s Le Meridien Hotel tomorrow.

Team Nigeria Lists 23 Athletes NPFL: Shooting Stars Pound Kano Pillars to Submission In its determination to steer sweet revenge after they were Sunday set up mercurial Ajani towards goal but Jonathan Zikiye for Rio 2016 Paralympics clear of the murky waters humiliated by the four-time Ibrahim in a goal rush and rushed up to clear. Still hungry Femi Solaja

The Paralympic Committee Nigeria in conjunction with the Ministry of Youth and Sports has named 23 athletes and six coaches that will represent Nigeria at the forthcoming Rio 2016 Paralympic Games holding between September 7 and 18, 2016 in Brazil.

The Media Officer of the Paralympic Committee Nigeria, Mr. Patrick Ibeh, said yesterday that Team Nigeria will compete in three sports where it has comparative advantage at the Games. The events are athletics, power-lifting and table-tennis.

Ibeh listed six athletes made up of five females and one male to compete in athletic events while 14 athletes (7 males and 7 females) are to take part in power-lifting events. Table-tennis has three athletes (2 males and 1 female) representing Nigeria.

Competing in athletics events are, Hannah Babalola, Eucharia Iyiazi, Lauritta Onye, Lovina Onyegbule, Flora Ugwunwa while Friday Aibangbe is the only male athlete in the event. Patrick Aieto and Adekunle Adesoji are the two accompanying coaches.

Those for power-lifting include, Nsini Ben, Lucy Ejike, Ndidi Nwosu, Bose Omolayo, Josephine Orji, Esther Onyema and Latifat Tijani (all women) while Yakubu Adesokan Roland Ezuruike, Abdulazeez Ibrahim, Nnamdi Innocent, Opeyemi Jegede, Paul Kehinde and Tolu-lope Taiwo are to compete in the men’s category.

Prince Are Feyisetan, Luke Ibeh are the male accompanying coaches with Patience Igbiti as

the only female coach.

Faith Obiorah (female), Ahmed Koleosho (male) and Emmanuel Nick (male) are those for table-tennis with Chinedu Njoku as their coach.

Secretary General of the Paralympics Committee Nigeria, Dr. Frank Thorpe who departed for Rio at the weekend ahead of the Games has commended the Sports Ministry for not neglecting the Paralympics athletes but provided a level playing ground for them while the President of PCN, Monday Emoeghavwe is optimistic of Team Nigeria’s good outing at the Rio 2016 Paralympics Games.

The team won 6 gold, 5 silver and 2 bronze medals to take the team’s total haul from previous edition to 26 gold, 11 silver and 12 bronze totaling 49 medals since first outing at the Barcelona 1992 Paralympic Games.

“Team Nigeria Paralympic athletes have never been found wanting when it comes to winning medals for the country. This is why Nigerians usually bank on them for medals when the chips are down no matter the colour of medals.

“We are always at the fore-front of winning medals for Nigeria in any event. We don’t go to any championship jamboree or mere participation. We go there to do Nigeria proud by winning medals.” Dr. Thorpe remarked before departure to Rio.

of relegation of the Nigeria Professional Football Club (NPFL), Shooting Stars yesterday hammered visiting Kano Pillars 4-0 in a Matchday 33 clash at the Lekan Salami Stadium in Ibadan.

However, the title race took a new dimension as leaders Wikki Tourists and Enugu Rangers both lost 1-0 at FC IfeanyiUbah and Nasarawa United, respectively.

Rivers United moved into second place on the table with 53 points after a 2-0 home win over Plateau United, while IfeanyiUbah are now third with 52 points.

On the back of the big home win against Pillars, Shooting Stars have now recorded 44 points from 32 matches, a point behind Pillars.

It was a deserved home win for the Ibadan club and a

Nigeria champions 6-0 in the first round of the season.

Striker Sunday Adetunji scored a second half brace to take his season’s tally to 10 goals with Ajani Ibrahim and Ifegwu Ojukwu also getting on the scoreboard in the first half.

After both teams had sized each other in the opening minutes, the Oluyole Warriors went straight to business with man of the match, Ifegwu Ojukwu, running in and shaking off Pillars central defender, Jamiu Alimi, to draw the first blood in the 9th minute.

The duo of Gambo Mohammed and Rabi’u Ali, highly influential in the Pillars system looked temporarily like they will rally their side back to contention but they had another thing coming as Ifegwu and Adetunji

he calculatedly tapped in to make life more difficult for the visitors before the break.

At resumption of play, Shooting continued the mauling with Adetunji Sunday tapping in again from a goal-mouth situation and celebrating with salsa steps that increased the enjoyment file the fans.

With three goals down, Pillars looked psychologically drained, resulting in a brief altercation between Rabi’u Ali and Jamiu Alimi before the later was replaced with.

Even at that, there was no escape for Pillars from the anger of the Shooting side who had been humiliated with similar wide goal berth when they went to Kano earlier in the season.

Adetunji Sunday had rounded goalkeeper Yusuf Mohammed and kicked

for more, Adetunji preyed around again and delivered his brace in the 64th minute to completely deflate Pillars.

NPFL Enyimba 2-1 Akwa Utd IfeanyiUbah 1-0 Wikki Rivers Utd 2-0 Plateau Utd Shooting 4-0 Kano Pillars Nasarawa 1-0 Rangers Tornadoes 2-0 Lobi Stars Ikorodu Utd 1-1 El-Kanemi MONDAY, Aug. 29, (8am) MFM FC vs Abia Warriors

EPL RESULTS W B A 0 - 0 Middlesbrough Man City 3 - 1 West Ham

LA LIGA RESULTS Bilbao 0 - 1 Barcelona

Gov Udom Visits Injured Akwa Utd Supporters Injured supporters of Akwa United Football Club got a pleasant surprise yesterday when Governor Udom Emmanuel paid an un scheduled visit to them.

On Saturday, 27 supporters of Akwa United FC on their way to supporting their darling team in a league match against Enyimba in Port Harcourt got involved in a motor accident that claimed the life of a supporter and left others severely injured.

On hearing the news,

Governor Udom yesterday morning went to the hospital to soothe the injured where he promised them that government will take full responsibility for their hospital bills.

He ordered those whose cases were serious to be transferred to the state specialist hospital and insisted that their case should be treated with utmost priority.

“They were on state duty as it were and we must accord them that honour. I came to cheer them up and to tell them that government will make sure they

get the best of treatment until they recover fully,” observed the governor.

The state Sports Commissioner, Monday Ukoh, told journalists that he was grateful to the governor for the prompt reaction and interest for the well being of his fellow statesmen.

He sympathised with the club for the loss of a life and prayed the good lord to give the supporters club and the family of the bereaved the fortitude to bear the loss.

In his reaction, Akwa United FC Chairman, Mr Paul Bassey, said it was a sad day for Akwa Ibom sports and thanked the governor for alleviating the pains of the injured.

“You needed to be there to see the relief on their faces as the governor spoke to them individually. I do not think they believed he would come around, but he did, shelving other state engagements. It is a big psychological boost that will quicken their recovery,” stressed Bassey.

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MISSILE Ugwuanyi to Fulani Herdsmen

“I have already summoned security meeting this afternoon of Fulani community and the security agencies in Enugu State to review the situation and determine the appropriate actions to be taken. It is indeed unfortunate that this incident is coming just days after the commission of inquiry into the killings at Nimbo submitted an interim report and is about to complete its assignment” –Enugu State Governor Ifeanyi Ugwuanyi warning Fulani herdsmen that the state would no longer tolerate the mindless killings of its citizens following the herdsmen’s attack of Ndiagu Attakwu Akegbe-Ugwu community in Nkanu West Local Government Area of the state.

ALEXOTTI OUTSIDE THE BOX

alex.otti@thisdaylive.com

The TSA and Financial Systems Stability

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iven my background as a former managing director of a major bank, I struggled with the propriety of writing on what I believe is a looming crisis in this sector that I love and to which I owe a lot. I felt that some people may interpret it as loyalty to my constituency, but I am sure that more perceptive people will agree that I had not spared the industry and former colleagues in previous articles when necessary. After serious reflection, I was convinced that it was my patriotic duty to raise this necessary alarm in this formal and public format. Simply put, the manner in which the TSA is currently being implemented, has the potential to drag the larger economy into further distress. It is imperative that concerned parties take a second look at it with a view to addressing some of the unintended consequences.

The Treasury Single Account (TSA) was introduced in 2012 to “sweep”, on a daily basis, all balances in the accounts of ministries, departments and agencies (MDAs) into a consolidated government account with the Central Bank of Nigeria (CBN). It was not until late last year that the Muhammadu Buhari government ordered its immediate implementation. It is estimated that commercial banks in the country lost up to N3.5 trillion of their deposits to full rollout of the TSA scheme. The whole idea of the TSA is to ensure transparency in the management of funds belonging to government and stop government functionaries from running multiple accounts in multiple banks. Relevant government departments would have oversight of all cash flows across the banks. It is aimed at monitoring receipts and expenditure and blocking leakages as operational accounts would cease to exist.

It is expected that the TSA would eliminate inefficiency in the management of government funds. There are instances where one arm of government would wind up with credit balances in one bank while at the same time borrowing in other banks and even in some cases, the same bank. Some government agencies would have credit balances in some of their accounts and debit balances in others in the same bank.

They would then end up making huge interest payments on the debit balances while earning little or nothing on their credit balances. The TSA was to take care of all those inefficient account management practices.

Last week, CBN came up with the news that nine banks were suspended from the foreign exchange market for withholding and concealing over $2.2 billion NNPC/NLNG funds which were meant to have been remitted to the TSA last year. A day later, one of the banks was let off the hook, apparently, having remitted its own portion. Shortly after, the NNPC came out with a statement to the effect that it was actually the one that discovered the concealment and reported the matter to the Presidency which in turn called CBN’s attention to it. Meanwhile, the affected banks came out with different statements, explaining their own positions, most of them denying the concealment allegation. I believe a lot of things went wrong with this whole drama. The most curious is the NNPC statement.

Could it be true that NNPC discovered the ‘concealed’ funds after all the funds should have been remitted close to a year ago? If this is true, then something very terrible is wrong with an organisation which would discover that its $2.2 billion was missing, almost one year

CBN Governor, Godwin Emefiele after. On the issue of concealment, is it possible for the banks to hide the said funds? My take is that it is not. All the banks render returns to the central bank periodically and public sector funds must be reported. Besides, the CBN and Nigeria Deposit Insurance Corporation (NDIC) do very thorough examination of banks periodically and such records cannot be hidden.

While the intentions behind the TSA are quite laudable, I do think that the way it was implemented, rather hurt the economy big time. I also feel it was implemented at a very inappropriate time. First and foremost, we must look at the economy as a system with different component parts. A weakness in one unit easily becomes a weakness in the entire system. It is like a chain that is as strong as the weakest link.

You may not like banks (and may be bankers), but they remain the engine of the economy.

That is why everywhere in the world, banks are treated with some caution as any negative action naturally would have a spiral effect on the economy. The timing of the withdrawal of public sector funds from banks coincided with when the economy was reeling from drastic fall in oil prices and attendant foreign exchange crisis.

That was a time when all economic hands needed to be on deck to swim out of the mess we found ourselves. That should not have been the time to take such a drastic action that was capable of sinking some banks. If it is true that about N3.5 trillion was lost by the commercial banks to TSA, it therefore follows that the banking industry lost over 50 per cent of total specified liquid assets which had averaged N6.75 trillion in the last two years. Put simply, liquid assets of banks are cash and near cash items which banks can access quickly to meet short term maturing obligations. The most important job of the bank is to be able to pay customers when they want to withdraw their money. Every bank must have enough war chest to respond to emergency withdrawals.

Therefore, the ability of banks to deal with this most important function was reduced by half as a result of the implementation of the TSA. The other point is that the withdrawal represented about 20 per cent of deposits of all the banks in the country estimated at about N17.5 trillion as at the end of the first quarter this year and 13 per cent of the aggregate assets

of the industry which stood at N27.4 trillion by the end of April this year. A cursory look at these numbers will show that this economy is not only small, but very fragile even in the best of times. This is more so during a period of severe economic crisis such as now. Understanding these issues should help in determining the kind of shock the economy can absorb.

Given the scenario painted, one thinks a phased approach would have been a lot better than the ‘one fell swoop’ action. Having done that already, I believe that the events of last week are unhelpful given the recession that has hit us. The implication of banning those banks amongst which are four of the eight systemically important banks includes that their customers would have to go elsewhere for foreign trade transactions including letters of credit and bills payments denominated in foreign currency. The panic created could make customers want to withdraw their deposits for fear of losing them, in case CBN makes good its threat to further penalise those banks. The banned banks themselves, who I understand were unable to pay the $2.2 billion because of lack of dollar liquidity and the scarcity experienced in the foreign exchange market are further thrown into more crises as they have been shut out of the market from where they could have been able to source the foreign exchange to pay back. The ability of such banks to engage in lending activities would also be impaired by this action. Their margins would be further put under pressure and they would be left with no option than to consider further cost cutting measures including laying off staff like we had seen in the recent past.

The central bank needs not be reminded that one of its most important functions is to maintain financial and economic systems stability. It must weigh its action against this major requirement.

I am unable to see how the recent action helps stability. The announcement-effect has great capacity to further damage the brands and precipitate a run on the banks. Foreign exchange rates that had hovered around N395 to the dollar jumped next day to over N400 and closed on Friday at around N410. The stock market also responded sharply as it was reported that banking stocks headed south, resulting in the loss of billions of naira in market capitalisation.

My thoughts are that the central bank should look deeply at the circumstances surrounding the inability of those banks to pay back the deposits in the original currency that they were received.

It should, therefore, consider accepting local currency equivalent from the banks. In fact, the CBN should debit the banks’ accounts domiciled with it for the naira equivalent. Some of the banks had extended fairly long term loans to both the power and oil sector which we all

know cannot be liquidated immediately. Some have even made provisions for the loans in the light of the current realities of the economy.

The alternative is for the CBN to work out structured repayment plan for the banks to enable them pay back the funds to the TSA over an agreed period of time. We should do everything to prevent a crisis in the banking sector. The last exercise which resulted in the creation of AMCON left the economy with very deep scars as the cost of that resolution was above N4 trillion and recovery is proving extremely difficult.

While I agree with the benefits of the TSA as intelligently espoused by its proponents, I do have quite some concerns about it. Besides the timing issue I raised earlier, I do not agree that taking out such large amount of money from the banking system and locking same away in CBN vault is useful to the economy. Economists talk about the multiplier effect of money. This means that money in banks is capable of creating more money as banks continue to lend portions of it to areas of need. Denying the banking industry access to such an amount of money is a great disservice to the economy. It is also a disservice to the government as I am not sure that CBN would pay interest to government at market rate, that is, if pays at all. There is no denying the fact that government remains the largest spender in the economy as shown by the numbers above.

Keeping the largest spender out of the banking system can only hurt the economy as the ability of financial intermediaries to put such funds to use is hampered. CBN is not structured to operate as a commercial bank and that is why the subtle complaints from some parastatals about difficulty in making simple payments and procurements since the implementation of TSA. My submission about the TSA is that it should be reviewed to work in all the banks where the government has accounts. Every bank will be made to have a TSA which is accessible to both the CBN and the government, where all government balances are pooled on a daily basis and the bank is made to pay interest on aggregate credit balances and charge interest on debit balances.

The system could also be designed such that either CBN or Ministry of Finance would fund all debit balances in banks on a daily basis to ensure the issue of paying interest in one bank while the government has net credit balances in others does not arise. All told, I must also remind banks that it is unacceptable in banking to engage in mismatch of any form, be it tenor or currency. Lending short term funds for long term projects is a ‘no no’. So is lending foreign currency for projects that can only generate local currency. Having said that, I strongly believe that it is no use throwing away the baby and the bath water.

Fake Article That was Trending in The Social Media On Wednesday August 24, my attention was drawn to a mischievous article by some spineless folks titled “IN MONTHS TO COME, A TOYOTA CAMRY WOULD BE OFFERED FOR N50,000 JUST TO FEED THE FAMILY”. This poorly written article that trended in the social media had my name as the author. It made an attempt to cast aspersions on the president comparing his

first coming to the present. I will like to inform everyone who saw the article that it does not have anything to do with me. I consider it a hatchet man’s job whose purpose I am yet to ascertain. I therefore call on my readers to ignore it and note that the medium for my articles is “Outside The Box” in THISDAY Newspapers and www.thisdaylive.com.

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