Stolen funds: No plea bargain- FG by Vanguard Media Limited

...towards a better life for the people

VOL. 25: NO. 62653

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MONDAY, DECEMBER 21, 2015

VANGUARD Personalities of the Year 5

President Buhari

Ex-President Jonathan

Asiwaju Bola Tinubu

Ex-INEC Chairman, Jega

Stolen funds: No plea bargain—FG By Soni Daniel, Northern Region Editor

•Insists all stolen money must be recovered •Says plea bargain allows looters to get away with fraud

BUJA —THE F e d e r a l Government declared, yesterday, that it was more interested in recovering to the last kobo, all public funds stolen and stashed away by top politicians and their cronies under the guise of arms purchase. It said it was not keen on frivolous plea bargain option being contemplated by some of the suspects now standing trial. The government said such plea bargain allows looters to go away with stolen public assets. Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami, (SAN) disclosed

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Mr & Mrs

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OWEI HENRY BOYO LAKEMFA Justice for the living, justice for Naira exchange rate, the dead CBN “don” miss road

COLUMNISTS:

BOKO HARAM VICTIM—Vice President Yemi Osinbajo(M), his wife, Dolapo and others at the National Hospital Abuja, after successful surgery on victim of Boko Haram, baby Aisha, weekend.

Fuel crisis defies solution nationwide 8 C M Y K

2 — Vanguard, MONDAY, DECEMBER 21 , 2015

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POCKET CARTOON

ICOBA—From left: President of Igbobi College Old Boys' Association (ICOBA), Mr. Foluso Phillips; Founder of FCMB Group and recipient of ICOBA Lifetime Achievement Award, Otunba Olasubomi Balogun and Vice President Yemi Osinbajo, during the association's Annual Christmas Dinner held Friday in Lagos.

We'll recover stolen funds, no plea bargain—FG Continues from Page 1 this in an exclusive interview with Vanguard last night. According to Malami, the era of allowing smart persons to loot public funds and pay back a pittance under the guise of plea bargain is over. The minister made it clear that all those who are implicated by the arms probe and other scams that have cost the nation hundreds of billions of Naira, would be made to cough out the money and still pay the price for breaching public trust. The reaction of the government came on the heels of the reported willingness of some top politicians to refund over N650 million which they claimed to have collected

from the former National Security Adviser, Col. Sambo Dasuki, for campaign purposes. According to a media report on yesterday, the top politicians, who had acknowledged collecting the money for the mobilization of their supporters in the six geopolitical zones of the country, were making moves to quietly return the money to the government. However, the Attorney General made it clear that while the option of plea bargain was being weighed, the government would first of all take necessary steps to recover the money. Malami said: ”Let me just make it clear to all that under the present

administration, it is no longer business-asusual. As at today, a lot of measures are being put in place to recover the loot which a few privileged Nigerians stole and stashed away.

By Emmanuel Aziken, Political Editor and Clifford Ndujihe, Deputy Political Editor

BY ELLA RANDLE

OW do you create your future? Figure out what you want. Take small steps toward making it a reality. Find mentors in your area of interest and contemplate on their experiences from start to success. If it means being flexible, adjusting to your initial path, so be it. In other words, the best way to create the future is to learn and act in the now.

SAYINGS OF OUR PEOPLE

HE raging fire will not force the chameleon not to walk like a prince.

years and (b) at the end of his terms of office, submit to the Code of Conduct Bureau, a written declaration of all his properties, assets and liabilities and those of his unmarried children under the age of 18 years. “Any statement in such declaration that is found to be false by any authority or person authorised in that behalf to verify it shall be deemed to be in breach of this Code. “Any property or assets acquired by a public officer after any declaration required under this constitution and which is not fairly attributable to income, gift, or loan approved by this code, shall be deemed to have been

acquired in breach of this code unless the contrary is proved”. Meanwhile, there were indications that no fewer than 10 top PDP leaders who have been named as beneficiaries of the arms funds might be summoned within the week to explain their roles in the scam. A top operative in the Economic and Financial Crimes Commission, EFCC, told Vanguard that the individuals needed to be invited to clear the air on the probe before further steps were taken against them. “As their names keep popping up in the course of our investigation, we need to give them the opportunity to speak up before we take the next step,” the source said last night.

Buhari, Jonathan emerge Vanguard Personalities of the Year, 2015

*Tinubu, Jega, heroes of democracy *Ekwueme, Danjuma, Dafinone, Akande others win life time IT'S UP TO YOU awards BY AYO ADIO *Oshiomhole, ATIONS become great because of the audacity Amosun, and visionary tendencies of its citizens. If this Dankwambo, nation would ever become great, then you must Shetimma emerge develop the audacity to dream and to do. Governors of the Year TAKE HEART

The best way to predict the future is to create it now — Forbes

“It is an article of obligation under the law of the Federal Government of Nigeria to convict the looters and recover the amount traced to each of them to show the disdain that this government has for corruption and to serve as a warning signal that nobody is authorised to steal the commonwealth of Nigerians under any guise." Malami said that the laws of Nigeria were adequate to deal with those who carted away the nation’s resources and are now living larger than their income. He said that the Fifth Schedule of the Nigerian Constitution has pushed the burden of proof from the government to those who looted the funds to prove their source of wealth and why they should not be jailed. According to him, the law allows the government to convict the accused persons and also take steps to recover their assets. Article 11 of the 5th Schedule of the Constitution says: “Subject to the provisions of the Constitution, every public officer shall within three months after coming into force of this Code of Conduct or immediately after taking office, and thereafter, (a) at the end of every four

Muhammadu Buhari was focused in his persistent pursuit of the presidency. Having attained the maximum political office as a military head of state 32 years earlier at the age of 41, Buhari seemed determined to regain political office as president. He submitted himself to a democratic process that in its course projected the re-

engineering of the political landscape. In the end and for the first time in the nation’s political history, an incumbent president was defeated in an election. In the run-up to the election, the Buhari persona became a major issue, but Buhari as candidate took the inquisition with remarkable aplomb. To the credit of the Buhari personality, many of those who contested on the platform of his party won on the coattails of his remarkable victory. His dogged pursuit, his incomparable victory and his so far unwavering efforts in sanitising the polity, Muhammadu Buhari is by the unanimous decision of Vanguard editors, Vanguard Personality of the Year, 2015.

Dr. Goodluck Jonathan – Personality of the Year, 2015

Like the mortal he is, Dr. Goodluck Jonathan’s fairy tale political expedition was bound to come to an end.

Following his advent, President Jonathan had promised to sanitise the electoral process, just as nearly all of the nation’s previous leaders. Dr. Jonathan, however, proved to be an exception allowing the incorporation of an electoral system that eventually led to his defeat. President Jonathan’s decision not to seek judicial or other crude disruption of the outcome of the 2015

presidential election not only turned out to be his finest hour, but a glittering anchor that has helped to stabilise the nation’s democracy. For his brave smile in the face of defeat, his efforts in refining the nation’s electoral system and his continuing continental role in the promotion of democracy, Dr. Goodluck Jonathan is the choice of Vanguard editors for Joint Personality of the Year, 2015. Continues on Page 7

Lifetime Achievements Awards

*Otunba Michael Olasubomi Balogun, Chairman, First City Group *Lt. Gen. T.Y. Danjuma (Rtd) *Alhaji Abdulsamad Rabiu, Chairman, BUA Group *Dr. Alex Ekwueme, former Vice-President *Senator David Dafinone, Eminent Accountant *Chief (Mrs) Nike Akande, President, LCCI

African Businessman of The Year

*Dr Mike Adenuga, Jnr, Chairman, Globacom

Governors of The Year

1. Adams Oshiomhole, Governor, Edo State 2. Ibikunle Amosun, Governor, Ogun State 3. Kashim Shettima, Governor, Borno State 4. Ibrahim Dankwambo, Gombe State Gov

6—Vanguard, MONDAY, DECEMBER 21 , 2015

1000 vigilantes killed by Boko Hram —Commandant-General A

By Caleb Ayansina

BUJA—MORE than 1000 vigilante members in the North-East of the country have so far been killed by the Boko Haram terrorists, the Commandant-General, Vigilante Group of Nigeria, Usman Mohammed Jahun, has disclosed. Jahun, a retired Major General, made this known while addressing his men, who

participated in the three-day intelligence and provost trainings, organised by the group, weekend, in Abuja. He said it is unfortunate that despite the sacrifices made by the deceased members, their families were neither compensated nor recognized by the government. ‘’We are making personal sacrifice to address security issues at the grassroots across the country, but no one is

recognizing us. It is unfortunate, we should be encouraged by a way of recognition,” he said. Also speaking, the chairman of the group’s Board of Trustees, Alhaji Ahmed Dahaltu, pleaded with President Muhammadu Buhari and other relevant government agencies to formally recognize activities of the group. ‘’Let our members also have the same benefits with other security outfits in the country. We are closer

to the grassroots more than any of them and we are fighting crime with sincerity. Our support to the present administration is total and we would continue to assist in curbing crimes in local communities,” he said. Participants said they have been equipped for the task ahead and begged relevant authorities to utilize them in fighting crime at local level.

WALKING THE DOG: Dogs walking, during the first Jos dog walk organised by Grand Cereals inconjunction with Jos Kennel Club in Jos, Plateau State. Photo: NAN.

Police arrest 12 suspected cultists for beheading man L

By Esther Onyegbula

AGOS—TWELVE men, who have been on the wanted lists of the Police for allegedly beheading one Afeez Obokwu in May this year, have been arrested by officers of the Special AntiRobbery Squad, Lagos State Criminal Investigation and Intelligence Department, Panti Yaba. It was learned that Obokwu’s headless body was recovered on the highway at Oyingbo railway while the severed head was recovered by the Police at the Otto Ilogbo, Ebute Meta area. The suspects arrested by the Police on tip off by members of the public include Kazeem Ajani, Suliamon Bello, Idowu Morawo, Abiodun Adeleke,Taiwo Jayesimi, Aberdeen Sanjowa,Abubakar Umaru, Ogunlade Dayo, Sodiq Olalere, Lekan Ajayi, Jamiu Wahaab and Kudus Olatunde. While describing the suspects as serial killers, the Police said some of the suspects were earlier arrested and charged to court but were released. From investigation, the suspects belong to two rival cult

groups called the Otto Boys with allegiance to the Eiye cult and the Apapa Boys with allegiance to the Aiye cult with their base at the Ebute-Meta area of the state. The suspects in their confessional statements to the Police revealed that they had participated in various killings across the state. Narrating how they beheaded their victim, one of the suspects, Taiwo said his gang members

killed four persons in a supremacy fight and beheaded one of their victims, Afeez Obokwu . “My name is Taiwo but popularly called Figo. Sometimes in May, there was a crisis between the Otto Boys and the Apapa Boys. I belong to the Otto Boys. The leader of our gang is called Dangbe. “On that particular day , our gang killed four rival cult members of the Apapa Road gang. We went to Apapa Road and

engaged them in a shootout where we killed four of the Apapa Road cultists," he said. Taiwo Jayesimi listed those killed to include Akin, Fatia, Afeez Obokwu and Eleto, adding that they used cutlass to behead Obokwu. “The Apapa boys also killed some of our boys namely Abeeb, Tunde, Gani and Baba Benti. It was a gang war of supremacy between our gang and the Apapa Road Boys,” he said.

One hospitalised in Lagos auto crash

By Esther Onyegbula

AGOS—ONE person has been reportedly hospitalised in an accident involving a DAF truck and a Honda vehicle at Kirikiri area of Lagos, opposite Nigeria Maritime Administration and Safety Agency, NIMASA, building. It was learned that the accident occurred when a DAF truck with number plate, JJJ875YK Lagos, carrying steel boards lost control and rammed into a navy blue Honda vehicle, which in turn rammed into an electric pole at

the middle of the highway. Although the occupants of the vehicle escaped unscathed, the Honda vehicle was damaged beyond repair. The accident which resulted in heavy gridlock caused untold hardship to motorists plying the Kirikiri axis. Eyewitnesses, who blamed the truck driver for the incident, said the occupants of the navy blue Honda were rescued. When Vanguard got to the scene officials from Federal Road Safety Corps and policemen were on

ground directing traffic while effort was being made to tow away the truck and the vehicle to Kiri-kiri police station. When contacted, the spokesperson of the Lagos State Police Command, DSP Joe Offor, said accident occurred at Kirikiri area of Lagos. "All the vehicles involved in the accident have been recovered. The accident wasn’t fatal, but one of the victims who suffered shock is now receiving treatment in a hospital,” he said.

Abductors of two Catholic priests in Delta demand N100m ransom

By Festus Ahon

S A B A — SUSPECTED kidnappers of the two Catholic Priests kidnapped in Delta state have reportedly established contact with the Issele-Uku Diocese demanding a ransom of N100 million. Rev. Fr. Franklyn Odiaka and Rev. Fr. Moses Nwanochei were last Friday kidnapped around Obior, Aniocha North Local Government Area of the state on their way from a ceremony in honour of their Bishop, Most Rev. Michael Elue. A source within the Diocese, who spoke with Vanguard on condition of anonymity, said the abductors contacted some of their priests in the diocese. While noting that the church has begun praying for the release of the priests, the source said that the kidnappers insisted on getting the N100 million ransom before they will release their victims. The state Police Public Relations Officer, DSP Celestina Kalu, who had earlier confirmed the kidnap of the priests, said the church had not lodged a formal complaint to the Police. Kalu in a text message said: “Up till now, the Police command has not received a formal or official report from the Catholic Church.” Meanwhile, members of the Assumption Catholic Church, Zappa, Asaba have since embarked on prayers for God to protect the victims and grant them unconditional release from their abductors. Another source in the church told newsmen that two prayer sessions were held yesterday after the usual Sunday masses, adding that “the first session which began by 2pm involved all women in the church while the second one which began by 4.30pm involved all the parishioners.”

Vanguard, MONDAY, DECEMBER 21, 2015—7

4 feared dead in fresh Share, Tsaragi communal clash •30 injured, 50 houses burnt I

By Demola Akinyemi

LORIN—NO fewer than four people were feared dead while thirty others were injured and 50 houses razed in renewed communal clash between the people of Share and Tsaragi despite the curfew imposed by Kwara State Government. Vanguard reliably gathered that 30 other people sustained serious injuries in Share town in Ifelodun Local Government Area of Kwara State yesterday following the invasion of the town by people suspected to be youths from Tsaragi.

Soldiers keep watch

Already, soldiers from Sobi army baracks, Ilorin have been drafted to the warring towns so as to support the anti-riot policemen drafted to the town on Saturday when the crisis

resumed. Also, churches, mission houses, and schools with equipped ICT facilities were reportedly burnt during the incident. The two communities of Share and Tsaragi in the state had been engaged in face-off over a land dispute. On Saturday, no fewer than 20 people reportedly sustained serious injuries when the clash between the two towns resumed over the invasion of the disputed land. Sources in the town told Vanguard that the irate youths suspected to be from Tsaragi town, armed with dangerous weapons including guns, invaded Share town and started burning some houses allegedly belonging to the people of the town. The sources informed that the

invasion by the irate youths suspected to be from Tsaragi town took the people of Share unawares as the earlier presence of anti-riot policemen drafted to the warring towns gave them assurance of full protection until the irate youths came to attack the Share community with dangerous weapons.

Church, schools razed

Eye witness account who sought anonymity from the war zone said that the irate youths of Tsaragi have reportedly burnt United Missionary Church, Share, the mission houses of the pastors, the UMCA school, the Muslim Community High School and set ablaze the ICT centres in the affected schools in the ancient town. Vanguard further gathered that some of the injured people have

been taken to a private hospital in Share for proper medical attention.

Shops closed

Sources added that the incident prevented many Christians from the towns from attending yesterday's church services while many residents closed their shops and business premises to avoid being attacked by the irate youths. The sources added that the army from the Sobi barracks have been working well to ensure normalcy returned after the burning of the houses in the ancient town of Share. Contacted, the state police commandPublicRelationsOfficer,Mr. Ajayi Okasanmi, confirmed the incidentsayingthat”onlythreehouses have been burnt.”

Train crushes 3 persons in Ilorin By Demola Akinyemi

LORIN—TRAGEDY struck Sunday afternoon in Ilorin as three persons inside a car were crushed to death by a moving train. Vanguard reliably gathered that the victims, two young men and a lady, were inside a Toyota Camry car with allfour windows wound up when they were crushed by the moving train said to be coming from the north to Offa. With the car ’s windows wound up, the three occupants of the car unknowingly parked on the railway line at Kulende area of Zango as they were said to be carried away by what they were doing in the car. An eye witness said: "As the train was fast approaching, several shouts and alerts by the passers by to the three occupants inside the Toyota Camry car to drive away from the railway line failed as they could not hear what the people were saying. "Consequently, the oncoming train heavily crushed the car with the occupants, causing commotion and pandemonium in the area."

The incident which occurred at the rail line at Kulende area of the state capital caught many by surprise as such incident had never happened in the area

since the existence of the railway line. The remains of the victims were immediately taken to University of Ilorin Teaching

Hospital as at press time. Residents of the area were seen discussing the tragedy in groups when Vanguard visited yesterday.

ENAGOA—BARELY twenty-four hours after the sister of the Bayelsa state Governor, Seriake Dickson, was kidnapped, suspected kidnappers on Sunday struck in Ogbia Local Government Area abducting the serving Commissioner for Local Government, Mrs. Sarafina

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Asiwaju Bola Ahmed Tinubu Hero of Democracy Unarguably one of the country ’s leading political engineers, Asiwaju Bola Ahmed Tinubu has now taken his remarkable political wizardry to the national space. His dogged resistance to the encroachments of the former ruling party in Lagos State, and to its routing in most of the Southwest states, largely bore the footprints of the former Lagos State governor. Tinubu’s central role in the enthronement of the new administration and the eclipse of the former government has been generally acknowledged by friends and foes. Remarkably, he has achieved his aim within the rules of democracy. For his political dexterity and commitment to the rule of law in his political engagements, Vanguard recognises Asiwaju Bola Ahmed Tinubu as the Hero of Democracy, 2015.

Professor Attahiru Jega Hero of Democracy

ACCIDENT: Wreckage of the Toyota Camry car with three occupants crushed by train in Ilorin, yesterday.

Bayelsa female commissioner abducted by gunmen By Emem Idio

Buhari, Jonathan emerge Vanguard Personalities of the Year, 2015

Otazi. Confirming the abduction of the state government official, a nephew of the victim, Mr. Patrick Oba, said she was kidnapped at gunpoint in Otuoke on her way to Ewoi Community in Ogbia Local Government Area for funeral. According to the family source, the kidnappers

reportedly whisked away the victim who was in company of two other ladies when they attacked and took away her car keys apparently to frustrate attempts at reporting the crime. It was also gathered that the two female occupants of the car and the driver were unharmed by the gunmen who sped off

to an unknown destination in their own vehicle. Otazi is a one-time acting chairperson of Ogbia Council area and also a former Commissioner for Women Affairs in the state. Spokesperson of the Bayelsa state Police Command, Asinim Butswatt, who confirmed the incident, said he was yet to get details as at press time.

Professor Attahiru Jega, a former president of the Academic Staff Union of Universities, ASUU, boosted his pedigree in 2011 when he conducted one of Nigeria’s most credible general elections. He was at that time less than 10 months in the saddle as chairman of the Independent National Electoral Commission, INEC. In 2015, in spite of pressures from many quarters he introduced many innovations into balloting in Nigeria such as the Permanent Voter Cards, PVCs, and Smart Card Readers (SCR), which helped to reduce ballot rigging in the general polls. His efforts led to the first undisputed presidential election in Nigeria’s practise of presidential democracy.

8—Vanguard, MONDAY, DECEMBER 21, 2015

leave their houses as early as 3am to join the queue. As a result of the fuel crisis, transport companies hiked their fares, thereby, worsening the plight of commuters. ABC Transport C ompany at Utako, for instance, hiked its fare from Abuja to Enugu to N6,000, weekend, from N4,500 earlier in the week. Same situation was recorded in other transport companies heading to the south eastern part of the country, specifically, forcing people travelling for the Christmas holiday to incur additional costs.

Scarcity nationwide CONFERENCE: From left, Chairman, Forte Oil Plc, Mr. Femi Otedola; Independent Director, Forte Oil Plc, Mr Chris Adeyemi, and Group Chief Executive Officer, Forte Oil Plc, Mr. Akin Akinfemiwa, during the Forte Oil investors conference, in Lagos.

Fuel crisis defies solution nationwide As motorists keep vigil at filling stations FG orders increased supply to end scarcity By Michael Eboh

BUJA — THE perennial fuel crisis which has blighted the year worsened across the country, weekend, as hundreds of motorists slept in petrol stations with the intention of purchasing the products. This was even as the Federal Government, yesterday, directed the Pipelines and Products Marketing Company, PPMC, and the Petroleum Products Pricing Regulatory Agency, PPPRA , to commence special supply intervention measures to bring an end to the perennial fuel scarcity witnessed across the country. This intervention, according to the Minister of State for Petroleum Resources and Group Managing Director of Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachikwu, is to ensure a country-wide availability of petroleum products ahead of the forthcoming yuletide and beyond. To this end, the NNPC, in a statement in Abuja, noted that the Kaduna Refinery and Petrochemical Company resumed operation over the weekend while the intervention was kick-started with the ramping up of additional supply via massive truck-out to guarantee product penetration to the nooks and crannies of the country. According to the NNPC, daily fuel truck out to locations such as Abuja, Kaduna, Kano, Enugu,

Ibadan and Jos has been increased significantly to enhance free flow of products across the country. The NNPC stated that it was consolidating its strategic alliance with some major depot owners and oil marketers with strong regional logistical outlay in those areas to ensure maximum infiltration of products especially in the hinterland ahead of the forthcoming Christmas and New Year festivities.

Warns against diversion, hoarding While calling on members of the public to refrain from hoarding, product diversion and panic buying of petrol, the NNPC noted that the intervention measure would help circumvent the challenges posed by the unavailability of pipelines for the transportation of petroleum products. It warned that product diversion is an economic crime and stated that it would not hesitate to report offenders to the security agencies for prosecution. Despite the claims by the NNPC, the scarcity increased in intensity, Wednesday, few days after the Federal Government announced that it had paid oil marketers their outstanding subsidy claims, and it showed no sign of abating.

Scarcity persists One motorist who spoke to Vanguard, disclosed that despite the fact that he came to the petrol station by 2 am, he couldn’t get the product to buy at the NNPC Mega Station at Katampe, along the Kubwa Expressway, till around noon. Another motorist said he joined the queue 5 am on Sunday, but couldn’t get fuel to buy until 4 pm. When Vanguard visited petrol stations along the Kubwa Expressway by 5am, vehicles were parked in front of the MRS, Mobil, Conoil, Total and Bulasawa filling stations, despite the fact that they were yet to commence business for the day. Only the NNPC Mega Station was selling with queues stretching several kilometres and a chaotic situation. To worsen matters, security personnel stationed at the entrance to the petrol stations to maintain orderliness were seen fuelling disorderliness. The security personnel allowed motorists who had paid them between N500 and N1,000, to enter through the exit gate, forcing other orderly motorists to spend several hours on the queue. Same situation was witnessed in some petrol stations at the Central Business Districts, as some motorists claimed they had to

OSUN: The effect of fuel situation in Osun State worsened over the weekend as most filling stations sold their products between N140 and N150 per litre. The situation was not made better as the NNPC mega station which sold its petrol product at normal price of N87 per litre had no supply. Similarly, transporters who are on inter-state routes have subsequently increased their fare by about 25 per cent. KWARA: The fuel situation in Kwara, particularly Ilorin, the state capital was worrisome as virtually all the fuel stations have remained under permanent lock for sometime now, except OANDO along Muritala and NNPC along Offa Garage Road and Asa Dam Road which dispensed the products whenever they have. As a result of this development,many motorists have now resorted to buying fuel in nearby Ogbomosho, about 30 minutes drive where petrol was available at N140 per litre. ANAMBRA: Despite the availability of petroleum products in most filling stations in Anambra State, the prize has continued to hover between N115 and N130 per litre. NNPC mega station in Awka, which is the only station selling at the official price of N87 per litre, does not sell regularly. Whenever there is fuel at the mega station, the queues are unusually long as many people would want to fill their vehicles at that rate. Other stations with NNPC signs and the multinational companies have not been selling fuel to the public since the prize went up, as there were allegations that they prefer to sell to the independent markers wholesale who, in turn, were freer to sell at whatever rate they liked. Unlike last week when many stations did not have

fuel, almost all stations along the Awka–Onitsha-Owerri axis had fuel yesterday and there were no queues whatsoever. Some of the fuel attendants said they were still trying to finish the fuel they lifted at very high rate before adjusting their pumps to the normal prize. It was, however, discovered that some of the stations that were not selling when the prize was high have bought products, but were still claiming that they bought them at exorbitant rates. BAYELSA: Petrol is relatively scarce in the predominantly riverine state. A litre is sold between N130 and N150 in filling stations across the state where the product is available. This explained the daily long queue at the NNPC mega station along Sani Abacha express road in the heart of Yenagoa where a litre is sold at N87. Motorists preferred the NNPC station to the other retail outlets in town regardless of the inconveniences in buying the product. The NNPC mega station pumps are believed to be dispensing the actual fuel paid for as against the other retail outlets which pumps have been tampered with and are under dispensing to buyers. OGUN: Many filling stations in the state locked their gates while the few that opened sell above the pump price at between N120 and N140 while only NNPC stations and MRS sell at N87 . Following the scarcity of fuel in Abeokuta, the state capital and some other parts of the state,which include Ijebu-Ode, Ilaro among others, most commercial vehicles charged exorbitant prices. ABIA: Fuel scarcity persists in the state as most petrol stations have remained closed while the few that have products dispense at between N125 and N140 per litre. However, the NNPC Mega station on EnuguPort Harcourt express road has been selling at N87 per litre though there are always long queues. OYO: Long and endless queues at filling stations which had subsided for a week have now returned. Premium Motor Spirit is sold for as much as N125 by some independent marketers while most major marketers shut their stations for lack of supply. In Sabo area of the city, black market goes on unhindered as under age boys stand by the road sides with kegs of petroleum products. RIVERS: Black market operators dealing on petrol are still making brisk business in Port Harcourt, and adjoining local government areas because of scarcity of the product. Most filling stations did not have product, the few that were selling dispensed to motorists at between N140 and N160 per litre. There were long queues at few filling stations of major marketers selling at N87 per litre. Commercial bus operators were still charging twice the fares for some routes because of the scarcity.

Vanguard, MONDAY, DECEMBER 21, 2015—9

Arms probe: 7th Senate carried out effective oversight — Magoro, Kunlere Say such funds were never brought for scrutiny By Henry Umoru

BUJA— CHAIRMAN, Senate Committee on Security and Intelligence in the 7th Senate, Senator Mohammed Magoro, and a member of the committee, Senator Boluwaji Kunlere, yesterday, disagreed sharply with Senate President Bukola Saraki, who attributed the ongoing and messy arms deal probe to poor oversight function from the last Senate. Magoro said his committee carried out effective oversight functions, adding, however, that such funds and expenditure in the present $2.1 billion arms deal were never presented before his committee for scrutiny. Corroborating Magoro, a member of the committee in the 7th Senate, Senator Kunlere, said such funds, as being exposed by the former National Security Adviser, Col. Sambo Dasuki (retd), were never part of the budget that came under the security of the Senate committee. In different text messages to Vanguard, they said the committee carried out its functions according to what was presented before it. Magoro, who represented Kebbi South in the 7th Senate, said: “I did not follow the plenary session of the Senate when the Senate President raised that observation as such I am not aware of the alleged remark by the Senate President. However, committees carry out oversight on the expenditure of the appropriated money to an agency. “Submissions of the budget made to our committee covered office of the National Security Adviser, ONSA; Department of State Services, DSS and NIA concerning their offices and pepartments only, nothing to do with procument for the Armed Forces. You can direct your question to perhaps chairmen of Defence & Army/Navy/and Air Force. I hope I have explained enough to you the process, once more thanks.’’ Senator Kunlere, who represented Ondo South in the 7th Senate, told Vanguard that the committee, in the course of its oversight function, went to Borno, Yobe and Adamawa states, among others, noting that the General Sani Abacha’s loot was never presented before the committee for scrutiny. “Those funds were not part of the budget that came under the scrutiny of the Senate Committee on National Security and Intelligence,” he stressed. Senate President Saraki, had last Tuesday, at a plenary blamed the uncovered fraud in the arms deal, during the immediate past administration of Goodluck

Jonathan, to the failure of National Assembly to carry out its proper oversight functions. Saraki, who had insisted that the legislature, which would

have carried out oversight to ensure that the money appropriated for arms purchase was strictly used for the purpose it was meant for, failed in such

responsibility, however vowed that the present National Assembly, which he heads, would not allow such development to recur.

VISIT: From left: Oladele Akinyemi, Executive Director, Regional Businesses North, Diamond Bank Plc; Dr. Sola Aliu, Consultant, National Entreprenuership Resource and Knowledge Centre (NERKC) Project; Dr. Chris Ogbechie, Chairman, Diamond Bank Plc; Mallam Ibrahim Dan Iya, Deputy Executive Secretary, National Universities Commission (NUC); and Dr. Rukayyatu Gurin, Director Student Support Services, NUC during a courtesy visit by the NUC delegation to Diamond Bank Plc.

SEC revokes licences of 84 inactive capital market operators Limited Corporate Investment By Nkiruka Nnorom

AGOS — THE Securities and Exchange Commission (SEC) has announced the revocation of registration of 84 capital market operators (CMOs) that failed to render statutory returns to the commission and their failure to comply with the new minimum capital requirement. Consequently, the commission advised all the stakeholders in the market, including Nigerian Stock Exchange (NSE), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc, all Capital Market Trade Groups and the investing public to sever all relationships with the affected CMOs. The commission said it was empowered under section 30 (1) and (2) of the Investment and Securities Act (ISA) 2007 to revoke the operational licence of capital market operators that are inactive. An operator in the capital market is adjudged to be inactive if it has not executed any transaction in the market for a period of six months. Also, operators in the market are required to render quarterly returns to the commission. In a notice on its website, tagged, “Pre-Notice on Cancellation of Certificates of Registration of Inactive Capital

Market Operators,” SEC gave the affected CMOs until December 4, 2015 to provide tangible reasons why they should retain their registrations as CMOs. The commission had last month notified 94 CMOs of its intention to revoke their operating licences for the above offences. It, however, gave a month grace to adduce reasons why their registration will not be cancelled and warned that it will de-register them in case of failure. The SEC said: “The 94 Capital Market Operators were registered by the Securities and Exchange Commission for various functions in the Nigerian capital market. However, these CMOs have consistently failed to render their statutory returns to the commission and may have been unable to comply with the new minimum capital requirements before the deadline stipulated by the commission, which expired on September 30, 2015.” The operators include: Aiq Venture Capital Fund Managers Ltd, Allbond Investment Limited, Amalgamated Capital Funds Ltd, Associated Investment Trust Co. Limited, Bayhead Alpha Capital Ltd, Bluebird Capital, Boston Capital Investments Limited, Brickfield Road Associates Ltd, Capital Partners

Adviser, Capital Structures Ltd, Circular Trust Ltd, Citi Asset Mgt ltd, Citizens Inv. & Sec. Ltd, City Investment Management Ltd, Consolidated Investment limited, Consult & Capital Limited, Dakal Services Limited, De-canon Investment Limited, Development Business Co, Dolbic Finance Limited, Dvcf Oil & Gas Plc, Dynamic Trust & Securities Ltd, Eazytrade Concept Ltd. Elyon’s Asset Management Ltd, Emi Capital Resources Ltd, Enterprise Capital Mgt. Ltd, Equinox Asset Management Limited, Express Discount Limited, FB Asset Mgt. Limited, First Marina Trust Ltd, Fittco Securities Limited, Floodgate Finance & Sec, G. Akomas & Partners, Global Capital Market Ltd, Global Inv. & Sec. Ltd, Habitat Trust Ltd and Hazonwao Assets Management. Others are Honey Comb Asset Mgt Ltd, Indemnity Finance Ltd, Integrated Capital Services Ltd, Investment Monitors Ltd, Jubilee Global Fund Plc, Kendall Securities Ltd, Kingsway Securities ltd, Koltron ltd, Lombard Asset Mgt. Limited, Lynac Securities Ltd, Malachai Funds & Assets Mgt. Ltd, Maninvest Asset Management Plc, Metropolitan Trust Nigeria Ltd.

Anti-graft war: UN pledges to support Buhari

By Ikechukwu Nnochiri

BUJA — The United Nations, UN, has pledged to support Nigeria in its effort to conquer the twin menace of corruption and terrorism. Consequently, the UN Secretary General, Mr. Ban Ki Moon, last Friday, sent a highpowered delegation to have a meeting with the AttorneyGeneral of the Federation and Minister of Justice, Abubakar Malami, SAN, at his office in Abuja. A statement by the Director of Information at the Federal Ministry of Justice, Mr. Nwodo Charles, said the delegation was led by UN Special envoy on ECOWAS, Dr. Mohammed Ibn Chambas. The international body said it was in full support of the current drive by President Muhammadu Buhari to recover looted funds. Chambers said the UN will cooperate with Nigeria to strengthen the administration of Justice, rule of law and respect for human rights in the country. However, he said there was need for all African countries in the Lake Chad Basin Commission (LCBC) to form a common front against the menace of terrorism, especially with regards to the spreading activities of the Boko Haram sect. While congratulating the minister on behalf of United Nations on his appointment, he noted the landmark achievements resulting from the free, fair and credible elections that were recently conducted in Nigeria, which he said had brought progress to Africa’s nascent democracy. “Dr. Chambas was optimistic that with the completion of the remaining 100km border posts, Boko Haram terrorists will be defeated,” he said. Meantime, the AGF has said he was pleased with the level of success so far recorded by the Nigeria/Cameroon Joint Border Commission, in terms of resolving cross border disputes between the two countries. The minister said this administration would be committed towards ensuring that unnecessary border disputes within the Lake Chad Basin areas are resolved amicably. He told the UN that Nigeria is currently working with other countries on reforms and protocols that will ultimately bring about everlasting peace in the region.

10 — Vanguard, MONDAY, DECEMBER 21 , 2015

Lagos partners police on violent crimes

AGOS—IN line with the Lagos State Government’s zero tolerance to issues of sexual and gender-based violence, the State’s Domestic and Sexual Violence Response Team (DSVRT) has entered into partnership with the Nigerian Police on the best strategies to adopt in handling issues relating to such crime. The DSVRT had specifically presented copies of sexual offences related laws namely the Child’s rights law, 2007; Prevention Against Domestic Violence Law, 2007; and the Criminal Law of Lagos State, 2011 to the Nigeria Police to familiarize itself with the relevant laws. The presentation, which took place at the weekend and attended by the State Commissioner of Police, Mr Fatai Ajani Owoseni, along with some Deputy Commissioners of Police and other top level officers, as well as members of the DSVRT. A statement signed by DSVRT Coordinator, Titilola Vivour-Adeniyi, said the provision of the laws was one of the various initiatives adopted to improve the capacity of the police in responding to reports of rape, defilement, domestic violence, child abuse, maltreatment and neglect. She added that the availability of the laws would serve as a most resourceful tool for investigation and rightful prosecution where applicable. The Commissioner of Police, Owoseni, whilst receiving the laws on behalf of the Nigeria Police, reaffirmed the commitment and partnership of the police towards eradicating sexual and gender-based violence and crimes in the state.

FG probes Aero’s use of ladder to disembark passengers By Lawani Mikairu

HE Minister of State for Aviation, Senator Hadi Sirika yesterday directed an immediate investigation into the use of ladder by Aero Contractors Airlines to disembark passengers on its chartered flight at the Bauchi Airport on Saturday. This was disclosed yesterday by Mr James Odaudu, Deputy Director, Press and Public Affairs of the Ministry. According to him; “Several reports received by the Minister have indicated the airline used a ladder to disembark passengers from a Boeing 737 aircraft at the

Bauchi airport on Saturday December 19th 2015. ‘’The act is inconsistent with Nigeria Civil Aviation Regulations, NCAR and International Civil Aviation Organization, ICAO, Standards and Recommended Practices, SARPS. “The investigation will determine the immediate and remote causes of the incident with a view to developing and implementing measures that will prevent a reoccurrence of the unsafe and unacceptable procedure that exposed passengers to high risk of serious injury. “He reiterated that if the airline is found culpable, the full weight

Bauchi Airport, using ladder instead of the normal stairs normally provided by the ground of sanctions within extant laws handlers at every airport. According to the Public Relations and regulations would be consultant of Aero, Mr Simon applied.” Odaudu added that the Tumba, the airline had to use the Minister assures the travelling ladder because of ‘unserviceable public that the Ministry of equipment’ at the time of Transportation in collaboration disembarking the passengers. He said this was rectified by the with Nigerian Civil Aviation time the airline was boarding the Authority, NCAA, will ensure strict adherence to the Nigerian passengers for their return flight. Tumba said; “A special charter Civil Aviation Regulations as well as ICAO Standards and flight operated by Aero to Bauchi Recommended Practices by all had problems with unserviceable equipment by the airport operators. Aero Contractors airline was management in disembarking on Saturday forced to disembark about 34 passengers from Abuja. 34 passengers on its chartered Consequently, against the airline’s flight from Nnamdi Azikiwe wish and operation safety International Airport, Abuja to guideline, the passengers used a ladder to disembark. “However at the time of boarding the air stairs became functional and the passengers boarded successfully.”

NAHCO exonerates self

INDUCTION: Oba of Lagos, Rilwan Akiolu I, performing induction rite on Alhaji Tajudeen Adio Durosinmi-Etti, as the newly-installed Chief Etti of Lagos at his Iga Idugaran Palace, weekend.

BREACH OF CONTRACT: Court orders bank to pay N4.5bn By Innocent Anaba

AGOS—A Federal High Court sitting in Lagos, has ordered Stanbic IBTC Bank Plc to pay a former Group Managing Director of Afribank Nigeria Plc, Patrick Olayele Akinkuotu and his company, Longterm Global Capital Limited the sum of N4.5 billion for breach of contract.

Trial judge, Justice John Tsoho also ordered Stanbic IBTC and Starcomms Plc to pay interest of 10 percent on the sum per annum until the date of final liquidation. The court also declared that the 100 million units of Starcomms’ shares sold to the plaintiffs through private placement in 2008 were improper, invalid, null and void and were hereby set aside.

Akinkuotu and his company had dragged the bank and Starcomms to court in 2012, alleging that Stanbic IBTC deliberately misled them into buying shares of the second defendant by misrepresenting facts and issuing false documents. Other plaintiffs in the suit are: Mrs. Oluyinka Akinkuotu and Lakeside Mews Limited.

Firm canvasses special grants for agricultural programmes By Naomi Uzor

AGOS—AN indigenous agriculture concern, Niyya Farm Group, makers of Farm Pride fruit juice and yoghurt, yesterday, urged the Federal Government to make available special grants for agricultural programs because of their long gestation period. The Chief Executive Officer of the firm, Rajiv Joshi, told Vanguard that; ‘’Government

The Nigerian Aviation Handling Company Plc, Nahco aviance, yesterday said it was not responsible for the ordeals of Aero contractors at Bauchi airport as it was not the ground handler that was supposed to provide the air stairs for boarding and disembarking passengers. Although, Aero in its explanation did not mention NAHCO or any ground handling company, but Mr Tayo Ajakaye, NAHCO spokesperson, said it was expedient to clarify insinuations and belief in some quarters that NAHCO was supposed to have provided the equipment. He added that NAHCO does not operate at Bauchi airport.

should provide interest free loans for orchard development with a moratorium of not less than three years, as it is a continuous investment.'' He also said that the importation of cheap concentrates, though cheaper to procure, has negative effects on our kind of business. According to him; “Synthetic concentrates, for instance, are injurious to health but cheaper to acquire making them

available in a lot of fruit juices. The importation of concentrates should be regulated to protect local farmers and companies who are developing agriculture, creating employment and contributing to forex.'' “As the Federal Government is looking to implement its program of providing free food for primary school children, Niyya/Farm Pride could as well partner with the authorities in delivering healthy and nutritious drinks to these kids. ‘’Banning of synthetic

concentrate which is actually very dangerous for the health of the people, will go a long way in helping agriculture in the country. Only fruit concentrate from reliable sources should be allowed for importation” he stated. He said the import duty on such concentrate should be hiked significantly so that there is no price war and local players manufacturing real & natural juice are not killed or closed down.

According to the plaintiffs, through their counsel, Chief Felix Fagbohungbe, SAN, on behalf of the plaintiffs, in April, 2008, the bank, through one of its officers, Akintayo Mabeweji proposed to sell shares of Starcomms to the plaintiffs by way of private placement. That the bank gave the plaintiffs an Investment Letter dated April 24, 2008, bearing the names of Stanbic IBTC and another company, Chapel Hill Advisory Partners Limited as Joint Issuing Houses and that the Investment Letter and the Form of Commitment were represented by the bank as the only placement documents which target or prospective investors were expected to rely on before they made their unfettered independent investment decisions in respect of the placement. That based on these, each of the plaintiffs were committed to purchase 25,000,000 units of Starcomms shares and promptly complied with the instructions of the bank.

Vanguard, MONDAY, DECEMBER 21, 2015 — 11

Resume work or be sacked, Aregbesola tells doctors By Gbenga Olarinoye

S O G B O — GOVERNOR Rauf Aregbesola of Osun State has issued a seven-day ultimatum to striking medical doctors in the state to return to their duty posts or be presumed to have voluntarily

resigned their appointments with the state government. Aregbesola in a statement by the Permanent Secretary Human Resources and Capacity Building, Mr Sunday Festus Olajide, on behalf of the government, condemned the action of medical doctors for not been ready to show

understanding like other labour unions during the period of national challenges on public finance. The statement said that despite series of appeals from the government to medical doctors in Ladoke Akintola University of Technology, Lautech Teaching Hospital, Osogbo and other government health institutions to show understanding during the

I've no plan to join APC – KASHAMU By Etop Ekanem

HE Senator representing Ogun East Senatorial District, Buruji Kashamu, has said he does not have any plans to decamp to the All Progressives Congress, APC, saying, his support for the Federal government’s anticorruption stance is not borne out of my personal interest but the interest of the masses who are in the majority and the love for the country. ‘’Our people have suffered for too long because of a greedy few who amass our commonwealth for themselves and their families,” he said.

He also said corruption must die for Nigeria to live, adding that all Nigerians must support President Muhammadu Buhari’s anti-graft war. In a statement, the senator, who said he was not supporting the war because he planned to switch from the Peoples Democratic Party, PDP, added that; “Corruption by whatever colouration is bad and inimical to our growth as a nation”. He said successive governments had made feeble and largely showmanship attempts to contain corruption with little or no results and without a sustainable plan of action. He said: “Let me make it abundantly clear that I am not in

any way romancing the APC. If truly politics is about the people and a contest of ideas, I cannot understand why any politician that is worth the name would see an idea that will benefit the people and not support it, irrespective of political leanings. I will support good initiatives, just as I will criticise bad ones.'' ‘’We must realize that the elections and campaigns are over. Whether we were elected on the platform of the PDP or APC, our people trusted us with their mandate because they know that we would represent them well and fight their course. It is a sacred responsibility that we must not betray.”

Why LG autonomy may be impossible, by Ekiti Senator As Fayose swears in LG bosses today By Rotimi Ojomoyela

DO EKITI—THE Chairman, Senate Committee on Air Force, Senator Duro Faseyi, has said that autonomy for local governments in the country would remain a pipe dream, so long as governors continue to maintain their stranglehold on the states House of Assembly. The Senator representing Ekiti North Senatorial District, accused the state governors of exerting unnecessary influence on the assembly to stall the efforts of the senate to complete the process of constitution amendments granting autonomy to all the 774 councils. Faseyi, who canvassed fiscal autonomy for the councils, said allowing governors to continue to appoint caretaker committees would jeopardise efforts at fighting poverty at the grassroot. Speaking in Iludun Ekiti yesterday on the

outcome of the Saturday, December 19 local government elections in Ekiti, Faseyi praised Governor Ayodele Fayose for installing democratic structures in all the 16 local government areas of the state by conducting local government elections, saying this would guarantee some level of independence for the tier.

Fayose swears in newly-elected 16 LG chairmen today

Meantime, following the victory of the Peoples Democratic Party, PDP, in the Saturday local government elections, the victorious helmsmen are expected to be sworn-in today by Governor Fayose. The PDP swept the polls across the state. Their inauguration would come up at the governor’s office in Ado-Ekiti, after collecting certificate of return from the state independent electoral commission.

‘Why we named Tinubu best politician' By Daud Olatunji

BEOKUTA—YORUBA Youth Congress, yesterday, explained why it chose a chieftain of the All Progressives Congress, APC, Asiwaju Bola Tinubu as the best politician in Yorubaland. The Congress, in its communique signed by its National coordinator,, Sunday Ogini, described Tinubu as ‘the original game changer of Nigerian Political landscape’. The group, which also conferred Oodua Speaker on the Speaker of Ogun State House of Assembly, Suraj Adekunbi, said the duo worked for the awards. According to the communique, the positive change which Nigerians are hoping to see in the President Muhammadu Buhari’s

administration was as a result of the tremendous efforts put up by Tinubu. The communique read in part “Oodua Politician of the Year Award is a celebration of a great leader and worthy ambassador of Yoruba race.” The group however, called on the President not to dash the hope of common men on the provision of food and shelter. “The Yoruba Youth Congress called on President Muhammad Buhari to ensure that the hope of common men on provisions of food,electricity and affordable petrol and kerosene is not dashed on focuses of war against corruption. “Nigerian voted for positive changes and hope to see changes in every sector in no distant time”, he said.

period of national challenges on public finance, the striking doctors have remained adamant. He lamented that the doctors have continued to draw their salaries in the last two months and still remain at home thus eating their cake and still wanting to have it. The government in the statement said that any striking doctor that fail to return to work on or before the expiration of seven days ultimatum, beginning from December 18, 2015 should consider himself or herself to have voluntarily resigned his or her appointments with the government. The statement declared that the strike embarked upon by the Medical Doctors in the State Public Service (both at Ladoke Akintola University Teaching Hospital, LAUTECH), Osogbo and other government health facilities was illegal saying it does not follow due process, thereby breaching even their professional Hippocratic Oath. The medical doctors commenced an industrial strike on Monday, 28th September 2015.

Ondo PDP chieftains join APC By Dayo Johnson

KURE—THE Director General for Technical Aids Corps, Dr Pius Osunyikanmi and Senator Ayo Akinyelure, both of the Peoples Democratic Party, PDP, in Ondo State have dumped the party for the All Progressives Congress, APC. Osunyikanmi and Akinyelure are close allies of Governor Olusegun Mimiko and his benefactors. They moved with him from the Labour Party to the PDP. Although speculation are rife of a no love-lost between Osuntinkanmi and his former benefactor, Akinyelure's sudden jumping of ship caught many political analylist in the state unawares. In a joint statement issued weekend, the two benefactors of Dr Mimiko said they decided to dump the PDP because of the ”failure of the PDP-led state government to deliver democracy dividends to the people.”

12—Vanguard, MONDAY, DECEMBER 21, 2015

Delta Central: A-Court sacks Amori, declares Omo-Agege winner A

By Festus Ahon

SABA—THE Court of Appeal sitting in Benin City, Edo State, has nullified the election of the senator representing Delta Central senatorial district in the Senate, Senator Ighoyota Amori of the People’s Democratic Party, PDP. The appellate court declared the senatorial candidate of Labour Party in the March 28 2015 election, Obaisi Ovie Omo-Agege as winner of the election. Amori’s sack came three weeks after he organised a thanksgiving service that attracted the leadership of the National Assembly, Governor Ifeanyi Okowa of Delta State and other top government functionaries from across the country. Delivering the judgment, Justice H. A. Barka in the lead decision, set aside the verdict of the lower tribunal which upheld the declaration of Senator Amori as winner of the election by the Independent National Electoral Commission, INEC. Barka held that they found Omo-Agege's appeal meritorious. Reacting to the judgment,

Omo-Agege thanked God and the judiciary for restoring the mandate which, according to him, was freely given to him by the people of Delta Central senatorial district through the ballot. Describing the judgment as victory for the Urhobo nation, Omo-Agege assured that the delay in giving him back his

mandate would not affect his performance as he is resolved to better the lots of the people. He held that as a senator, he will put the issues of Urhobo on the front burner in the National Assembly and thereby, place the Urhobo nation in its right place in the politics of the country.

Omo-Agege thanked his supporters for their prayers and strong belief in his representation at the Senate. He appealed to his opponents to join hands with him in the task of developing Delta Central senatorial district and promised to initiate bills that would engender the development of the district.

UTOM-OBONG: From left: Chairman of the occasion, Princess Florence Ita-Giwa; Cross River State Governor, Professor Ben Ayade and the Obong of Calabar, His Eminence, Edidem Ekpo Okon Abasi Otu V, during the annual Utom-Obong, at the Obong's country home in Adiabo, Calabar, weekend.

Bayelsa: Abduction of Dickson’s sister political —PDP By Samuel Oyadongha

ENAGOA—THE Peoples Democratic Party, PDP, Campaign Organisation in Bayelsa State has described the abduction of Nancy Dickson, younger sister of Governor Seriake Dickson, as politically motivated. Nancy Dickson, aged 26 and her sales girl were kidnapped Saturday at 2.50 p.m. by four armed men at the Okaka suburb of Yenagoa, a development that heightened security at the entry and exit points in the state capital. The gunmen, who drove in an ash coloued Lexus SUV, reportedly trailed the governor’s younger sister to her shop where she was forcibly taken away with her sales girl to an unknown destination. Condemning the incident, the PDP, through the Publicity Director of the Restoration Campaign Organisation, RCO, Jonathan Obuebite, warned the immediate family members and relations of the governor to be mindful of their movement and those they associate with. It said that security reports at its disposal revealed more kidnappings between now and the January 9, re-run election in the state. The move, the Restoration

Campaign Organisation said, was part of the grand design to destabilise the incumbent governor ahead of the re-run governorship poll, in which the PDP has clinched six out of the seven declared councils as against the APC's one. The campaign organisation said that kidnapping, maiming of law abiding citizens and other acts of criminality, had been on the increase since the botched governorship primaries of the APC in the state. The RC called on well-

meaning Bayelsans and Nigerians to join in condemning the act, “as this brand of politics will not augur well for a country like Nigeria, which is still building its political institutions, so as to be counted as one of the leading democracies in the world.” According to the campaign outfit, “This is taking politics too far and it will not augur well for our democracy. We are condemning it and we call on well meaning Bayelsans and Nigerians to speak up now and condemn it.

“We are calling on the security agencies to step up efforts to ensure the quick release of the governor’s younger sister, as well as arrest and bring the perpetrators to book. We also advise all close relations and aides of the governor to be mindful of places they visit and persons they associate with. “The PDP will not allow itself to be intimidated, but will remain focused until it emerges victorious in the re-run election in Southern Ijaw Local Government Area.”

We're ready for rescheduled Bayelsa poll —APC By Samuel Oyadongha

ENAGOA—THE governorship candidate of All Progressives Congress, APC, and former governor of Bayelsa State, Chief Timipre Sylva, says he is ready and willing to compete against Governor Seriake Dickson at any electoral contest. Sylva, who boasted that he would emerge victorious, accused the incumbent, Dickson, of engaging in underhand tactics to win. The APC candidate,

through the Director, Media and Publicity, Sylva-Igiri Campaign Organisation, Chief Nathan Egba, said that it was for this reason that the party protested the alleged illegal cancellation of the Southern Ijaw council election. He said: “It is for this reason that the APC vehemently protested the illegal cancellation of the Southern Ijaw election results which clearly would have put us well ahead of the Peoples Democratic Party, PDP. But with all the

stakeholders having agreed on a new date, the SylvaIgiri Campaign Organisation is poised to galvanise our support-base in order to repeat the feat we performed in Southern Ijaw council and some other polling units across six local government areas. “Our strength is in the fact that majority of the people of Southern Ijaw council are with us and are still committed to standing by us through this whole process in order to eventually celebrate a hard-won victory."

DESOPADEC MD denies alleged N50m fraud By Emma Amaize

SABA—MANAGING Director/Chief Executive Officer of Delta State Oil Producing Areas Development Commission, DESOPADEC, Chief William Makinde, weekend, denied media report that the commission’s board squandered N50 million on an end-of-year party for workers. Chief Makinde, in a statement by his Special Assistant on Media, Dr. Prince Orhomonokpaye, said that the report was a fabrication and urged reporters to verify information before publishing. “We expect the media to reach out to us to get our side of the story for balanced reporting, which some of the practitioners are not doing,” he said.

Rivers holds first mass choir carol festival By Jimitota Onoyume

ORT HARCOURT: THE Rivers State Government has held its first ever 1,000-man mass choir carol festival at the Yakubu Gowon Stadium, Port Harcourt. The state governor, Mr Nyesom Wike, who spoke at the weekend event, said, the carol night was organised to thank God for the successful take off of his administration. He expressed optimism that he will come out victorious in the battle with his political opponents. According to him, he had never had political victory cheaply, recalling that as Chairman of Obio/Akpor Local Government Area several years back, his opponents dragged the battle they had with him up to the Supreme Court. “I was the only council chairman in the country whose political litigation got to the Supreme Court during the 1999 electioneering process. I got my victory at the Supreme Court in April 2000,” he said.

Vanguard, MONDAY, DECEMBER 21, 2015—13

A-Court reserves judgment in Ogboru’s appeal T

HE Court of Appeal sitting in Benin, Edo State, has reserved judgement in the appeal by candidate of Labour Party, LP, Chief Great Ogboru and Labour Party, praying the appellate court to set aside the decision of the Justice N. T. Gunmi-led governorship election petition tribunal in Asaba. The tribunal had on October 25, upheld the declaration of Dr. Ifeanyi Okowa of the Peoples Democratic Party, PDP, as winner of the April 11 election by the Independent National Electoral Commission, INEC, but the appellants are contending that the judges erred in law. Ogboru, in the appeal through his counsel, Mr. Dele Adesina, SAN, is further contending that if the lower tribunal had properly evaluated evidence brought before it by the petitioner, it would have arrived at a different decision. Addressing newsmen after parties adopted their

briefs, counsel to Ogboru said: “It is the position of the appellant that the decision of the lower court was wrong because the evidence before the lower tribunal was not properly evaluated, and the lower court admitted inadmissible evidence and relied on them to arrive at their judgement. “We urge the Appeal Court to expunge those inadmissible evidences, because it is our contention that if that legally inadmissible evidence

Eribo to Oshiomhole: Don’t make yourself another godfather in EdoObaseki as candidate of the By Simon Ebegbulem

ENIN—THE l a w m a k e r representing Egor constituency in Edo State House of Assembly, Mr. Crosby Eribo, says Governor Adams Oshiomhole will be making himself another godfather in the state if the rumoured endorsement of Mr Godwin

Ijaw/Itsekiri leaders petition Buhari, Okowa over Shell

A R R I — WORRIED by alleged double standard being played by Shell Petroleum Development Company, SPDC, leaders of Ijaw and Itsekiri Oil and Gas Producing Communities have called for a total review of the company’s policy on manufacturer’s agents. According to the aggrieved leaders, Shell workers are not only playing double standard but are using agents who are their cronies in procurement processes. In a statement addressed to President Muhammadu Buhari by Messrs Edougha Moses and Fregene Emiko, National President Ijaw and Itsekiri Forum respectively, the people alleged that the huge financial commitment of annual renewal of the heavy marine vessel for contract documents are

were not admitted, the decision of the lower tribunal would have been different. “We also hold that the lower tribunal failed to resolve all the issues canvassed before it. The law is that the court of first instance must resolve all issues brought before it. For example, we submit that the result of the governorship election in Delta State on April 11, 2015 was post dated. It was prepared in advance and nowhere did the tribunal say anything about it.”

renewed yearly without jobs. “All the Shell staff working in Delta State are christened Rivers State indigenes, hence the monthly PAYE deductions now accrue to Rivers State, thereby shortchanging Delta State revenues,” the leaders said. Lambasting Shell for its refusal to fully implement the Nigeria Local Content Laws, the aggrieved people want Shell workers to vacate Ijaw and Itsekiri land as they can no longer guarantee their safety. “Obviously, the activities of Shell are a threat to the fragile peace in the Niger Delta region. Shell did not only insult the host communities, it also snubbed and rubbished Governr Ifeanyi Okowa by failing to honour the peace talks summoned by the governor in December 15, 2015 in Asaba,” they said.

All Progressives Congress, APC, in the 2016 governorship election in the state by the governor was true. Eribo, who addressed newsmen at his birthday celebration, weekend, in Benin City, stressed that APC members, and not a particular leader, would endorse a governorship candidate for the party in the state, warning that any attempt to impose a particular candidate was capable of creating crisis in the party, “which I am sure the governor will not want, as the leader of the party in the state. “I have heard people saying that the governor told them that Obaseki is the candidate. For me, that is not true because as the lawmaker representing Egor, the governor should have told me but he has not and that is why I don’t believe that story. The governor has been in the fore front of the fight against godfatherism in the state and thank God he has done it well and we are happy. “He also believes in the mantra of let the people lead and that has changed the politics of Edo State. So, I don’t see the governor now coming to make himself another godfather by anointing somebody unknown to us. We have come to the level where we now have the opportunity to choose who we want."

14 — Vanguard, MONDAY, DECEMBER 21 , 2015

FESTIVAL OF CHRISTMAS CAROL: From left; Chief Katia Ekesi; Chief Mike Inegbese, Atunwase of Lagos; Chief Mary Inegbese; Erelu Abiola Dosumu, Erelu Kuti IV of Lagos, and Chief Paul Da Costa, Bobajaiye of Lagos, during the Festival of Christmas Carol and Lessons, organised by Erelu Dosumu, at Victoria Island, Lagos. Photo by Kehinde Gbadamosi.

Jonathan urges Nigerians to work, pray for good of nation

BUJA—FORMER President Goodluck Jonathan yesterday enjoined Nigerians to pray and work for the good of the country, stressing that God would see the nation through its period of hardship. Jonathan stated this yesterday while addressing the congregation at the Word Illumination Ministry in Gwarimpa, Abuja, where the former President, his wife and well wishers had gone to dedicate and thank God for his first grandchild. Jonathan noted that every country has its high and low periods, adding that with dedication and hardwork, nations overcome their problems. The former President also advised Nigerians to endeavor to give their best to their country at all times. He said further: “I will just thank God for all he has been doing for our country and I also thank you all for the prayers for the good of our country. Whenever I am talking to Christians and other believers depending on their faith, I always urge them to pray for the country. Every nation go through two periods; period of adversity and period of joy. “For Christians if you read the Old Testament, you sometime think that the whole world was going to end but God has a reason for everything. No matter the circumstances we are going through today, I believe that with the prayers, diligence and hardwork of Nigerians, God will see this nation through all its tribulations. I always say that the key and constant thing is Nigeria, and not who is

leading the country. It could be Jonathan today, it could be Buhari, Obasanjo, Shagari, Abdulsalami today, and it could be anybody else. We have all played our part and as we progress, others will take

over. Maybe some of the people that will take over tomorrow are also here in this church. ''So, the most important thing is the nation that belongs to all of us and we must strive to protect it.''

RMAFC hails Kogi gov-elect, Bello to your wide acceptability

HE Revenue Mobilization, Allocation and Fiscal Commission, RMAFC has congratulated Kogi State governor-elect, Alhaji Yahaya Bello, over “his resounding victory at the poll.” This is just as the governor-elect has tasked members of the transition committee to ensure a smooth take-off for his administration on January 27th, 2016. In a letter dated December 18, 2015 signed by its Acting Chairman, Shettima Abba Gana, the commission expressed confidence in the competence of Bello in turning around the fortunes of Kogi State. The governor-elect served the commission for about fifteen years before bowing out to pursue his governorship ambition. The commission said the success of Bello did not come to it as a surprise citing his “hard work, ingenuity, and doggedness in pursuing genuine goals” while working with the commission and expressed confidence in his ability to deliver the dividends of democracy to the people of Kogi State. “These and other enviable traits of yours attest

by the people of the state,” the commission further stated, while wishing Bello a successful tenure in office,'' the statement said. Meanwhile, Bello, has tasked members of the transition committee to ensure a smooth take-off for his administration. Addressing members of the committee led by Alhaji Isah Shaibu, Bello argued that Kogi State has passed through numerous experiences which the committee will be considering in the discharge of its duties. According to him, “Kogi State is endowed with abundant natural and human resources. With the presence of Obajana Cement Factory, Ajaokuta Steel Company as well as Itakpe Iron Ore, our state could not have been asking for more as far as industrial and economic aspirations are concerned.

Vanguard, MONDAY, DECEMBER 21, 2015—15

Enugu is in the hands of God —Gov Ugwuanyi By Emeka Mamah

N U G U — GOVERNOR of Enugu State, Chief Ifeanyi Ugwuanyi has lamented the poor economic situation in the country following dwindling oil revenue, saying that the sustenance of the state was in the hands of God. Ugwuanyi lamented that it was now difficult to pay workers’ salaries, let alone embark on development projects. He spoke, yesterday, during the thanksgiving mass/reception held in honour of the Speaker of the state House of Assembly, Mr. Edward Ubosi, by the people of Nkanu at the Catholic Assumption Church, Nkwo Nike. Ugwuanyi pointed out that in the recent past, states enjoyed money from excess crude account, adding that the situation was now the opposite as the states were asking for bailout from the Federal Government to pay salaries. He expressed optimism that despite the murky economic fortunes, Enugu State would prosper. Ugwuanyi said that his optimism was based on the prayers for the success of his administration by the people of the state even as he promised to rule with the fear of God. “We must work in Enugu State with the fear of God. Always put us in your prayers. Put us in your prayers and we shall succeed,” he said. Earlier in his sermon on the occasion, the officiating priest, Monsignor Patrick Ugwu had commended Ugwuanyi for his care for the poor and the needy and urged him to continue with his good works.

Trouble looms in Abia community over natural resources By Anayo Okoli

MUAHIA—TENSION is mounting over granite and precious stones in the mineral rich Lokpaukwu Umuchieze community in Umunneochi Local Government Area of Abia State following alleged disobedience of

a court order for the company operating a mining site in the community to stop work. When Vanguard visited the community, weekend, it was gathered that the youths were spoiling for a show-down with the company, Pioneer Sinochino Investment Venture Limited, which they accused of flouting a

Federal High Court Order which stopped the company and another firm, Asphalt Unity Construction Limited, from operating at the disputing Aguokeakpu quarry land of Amaubiri/Umutu in the community, until the determination of a pending suit in the court.

To avoid the breach of peace in the sleepy community, leaders and major stakeholders in the area, have urged the Police to wade in and ensure that the court order was complied with to avoid a break-down of law and order in the community even as they appealed to the youths to remain calm.

2016: Obiano lauds Anambra people over political support By Vincent Ujumadu

O CONTINUE the improvement on the fortunes of Anambra State, Governor Willie Obiano has commended the people for their

support for the government and urged them to continue along that path in 2016. The governor made the appeal, yesterday, when he led members of his cabinet and stakeholders in the state to a Special Thanksgiving Mass to close the

out-going year 2015 at the expansive Gech Auditorium in his country home in Aguleri. Speaking with journalists after the Holy Mass, Governor Obiano, who thanked God for His love, protection and provision for Anambra and Nigeria as a whole,

AUTO CRASH: Ebonyi youths protest death of

colleagues By Peter Okutu

B A K A L I K I — Y O U T H S , weekend, staged a peaceful protest over the death of 10 youths in an auto-crash, while on their way to witness the Appeal Court judgment on Ebonyi State governorship election. The youths, who carried placards with various inscriptions, stormed the Government House, Abakaliki to register their protest. In his speech, leader of the youths and Chairman, National Youth Council of Nigeria, NYCN, Elder Samuel Igwe said: “No doubt, every mortal will die definitely one day, but a situation where these youths had to be sacrificed on the altar of political desperation is unacceptable to Ebonyians. “Anybody can go to the court to challenge whatever he feels aggrieved about but that has to be done following due process with evidences for justification, and not to sacrifice our youths. "We suspect that some political desperados know what or who is behind these sad deaths of our youths who are future leaders of our dear state. “We suspect foul-play in this matter as it concerns the enemies of the incumbent administration.”

He called on Governor David Umahi to set up a panel of inquiry to unravel the causes of the untimely death of the youths. Addressing the youths, the Chief of Staff Government House, Chief Emmanuel Offor said, the state government was unhappy over the death of the youths. He alleged that some misguided and desperate politicians in the state were using the youths as sacrifice to actualize their ambition.

and while looking back at the past 19 months of his administration, he said that Anambra had experienced a remarkable change. Thanking the people for their unflinching support all through 2015, he urged them to maintain the same attitude of prayer, thanksgiving and support for his government because he was determined to build a prosperous and modern state which the citizens would be proud to be identified with. Earlier in his Homily, Rev. Fr. Michael Muonwea stressed the need for leaders to see their positions as a call for service, because according to him: "There is always a delicate balance between power and authority, which must be observed by any leader, who desires success."

16 — Vanguard, MONDAY, DECEMBER 21, 2015 THE euphoria following the inauguration of President Muhammadu Buhari’s regime seven months ago appears dampened by a plethora of economic problems, one of which is the savage return of fuel scarcity, which has been on for two months. Fuel shortage is a manifestation of multi-dimensional challenges facing the petroleum industry: deregulation of the downstream sector, removal of the petroleum product subsidy, product supply challenges arising from non-functional refineries, illegal artisanal refining business in the Niger Delta, crude oil theft and poor maintenance/management of the more than 5,000km oil pipelines in Nigeria. Corruption is a central player in all these. The Nigerian public, to whom the new government is accountable does not need to be bothered with this long list of challenges. All they want is to get the petroleum products to run

A modular refinery strategy needed their lives. Removal of fuel subsidy as indicated by the federal government is a step in the right direction only if it goes with the complement of local refining and supply of the products. We, therefore, advocate the modular refinery strategy against the backdrop of the massive failures and disappointments we have seen in the conventional refining system Nigeria has run since 1965. This has become more compelling in view of the slow pace of delivery on the private sector conventional refinery projects with the most serious of them by the Dangote Group

projected to come on stream in 2018. The advantages of the modular refinery option are its simplicity, low start-up cost and flexibility in adjusting to market demands. The simplicity of the technology weighs much value in our society that is challenged by poor maintenance culture which is the key problem of the refineries that exist in the country. Moreover a conventional refinery will cost a minimum of US$3 billion with a 100,000 barrel per day (bpd) capacity, an amount which can set up 20 modular refineries of between 10 and 20 bpd.

It also takes an average of 18 months to deliver a standard modular refinery which is usually a turnkey compared to the approximately about three years it takes a serious investor to start and finish a 100,000 bpd conventional refinery. It is often argued that since modular refineries are not configured to combine multiple product lines, it is less cost-effective on economies of scale. The product line disadvantage should be addressed by consciously licensing and promoting the modular refineries on product line basis where the petroleum authorities should determine the product lines demand structure in the economy and licence accordingly. On the economies of scale, the authorities can also determine the optimum market size per refinery and guarantee prospective investors of a licensing regime that protects their market share.

OPINION Perils of an infamous alliance By Tochukwu Ezukanma

T a church event, a then serving president said that he honoured the church’s invitation because the pastor of the church routinely prayed for him and e-mailed him the transcript of the prayers. To pray for your president is magnificent, but to email him the text of the prayer was expedient: a self-serving act (most likely) aimed at getting the attention, and currying the favour, of the president. Pastors, especially, of new generation, Pentecostal, mega churches in Nigeria desperately desire to hobnob with presidents, governors and other members of the power elite. The power elite appreciate the ingratiation of these pastors, and though rarely prophets, pastors or preachers, they relish being thrust before church audience to pray, preach and exhort. There is a symbiotic alliance between the Nigerian power elite and religious elite. They need each other in their determined exploitation of the Nigerian masses. Over the years, the Nigerian power elite reduced Nigeria to a blundering and floundering country, considered a failed state in some international circles. Their corruption, irresponsible governance and anti-people policies consigned a disproportionate percentage of Nigerians to raw-dirt poverty and stupefacient ignorance. Their moral bankruptcy and lawlessness promoted avarice, aggressiveness of wealth and culture of impunity – essentially – a moral and ethical collapse of the Nigerian society. Ordinarily, the Nigerian men of God should been unrelenting in their condemnation of these rulers.

The ancient Chinese philosopher, Confucius, enjoined his followers to “criticize an erring ruler fearlessly in behalf of the common good”. Yes, it is a moral, spiritual and social obligation to censure an errant leader. Criticisms are most helpful to rulers. They remind them of their frailties and limitations, that, in spite of the loftiness of their positions and expansiveness of their powers, they remain as fallible as an abased destitute. It humbles and sobers them. And sobriety and humility are necessary qualities for responsible leadership. The Bible states that, “He who rules over men must be just, ruling in the fear of God”. Accordingly, earlier men of God like Samuel, Elijah and John the Baptist boldly reprimanded leaders who ruled unjustly and without the fear of God. Modern history is also suffused with instances of pastors taking resolute stances against bad leadership, social injustice and wicked government policies. Black

The political class are obliging them this protection because they need the pastors to brainwash Nigerian Christians into political passivity

American preachers like Martin Luther King Jr., Andrew Young, and Jesse Jackson played pivotal roles in getting America to live up to her creed that, “…all men are created equal”. During the Apartheid era in South Africa, Desmond Tutu and Allan Boesak among other clergy men played pivotal roles in dismantling that unconscionable, institutionalised racism. But, unfortunately, in Nigeria, preachers, for the most part, do not question the abuse of power and the bad policies of the power class, most of who rule unjustly and without reverence for the law, respect for man or fear of God. This is because the pastors, mostly, of the Pentecostal churches, are as greedy and venal as the most morally degenerate of the political elite. With their Prosperity Doctrine and its inherent distortion of the gospel of Jesus Christ, they ignore the motifs of Christianity (repentance, righteousness, love for others, etc) and dwell on the false doctrine of sowing seeds and prospering. The object of Prosperity Doctrine is not to make Christians more Christ-like but to line the pastors’ pockets, maintain their swanky lifestyles and enlarge their financial empires. Preaching their false doctrine with the flippancy and smoothness of a con artist, they badger and browbeat their members into emptying their pockets into the offering boxes as offerings, tithes and seeds. While a considerable proportion of their members live in poverty and squalour, the pastors, with their tax-free wealth, dwell in mansions, possess fleet of luxury cars, own private jets and indulge their other fantasies. Consequently, they do not only lack the moral authority to reproof our amoral rulers, they need the protection of the rulers. The political class are obliging them this protection because they need the pastors to brainwash Nigerian Christians into political

passivity. So, the pastors can continue with their convolution of the Christian doctrine and exploitative amassing of wealth but, in return, preach passivity and docility to their members. With the level of disillusion and frustration among the masses, the pastors’ role is to dissuade a populace enraged by the excesses and evils of the power elite from questioning their leaders and demanding accountability and retribution. So, instead of using their enormous powers (inviolability of the pulpit, moral authority of the word of God, unction of God and a mesmerizing grip on the minds of their members) to demand a more responsible and principled exercise of power by our leaders, they are using them to douse the political vehemence of the masses. As such, from the pulpit, Nigeria pastors exculpate the power elite from the havoc they are wrecking on this country and indict the masses for the offenses of the leaders. They preach docility, servility and tolerance (for the intolerable) to their members; insinuating that it is sinful to criticize your leaders. They urge them not to complain about the desperate poverty that mars their lives; the pigsties and hovels they inhabit; the trash strewn, festering, oozing and vermin infested neighborhoods they live in; etc; but to just pray for their leaders. With their perversion of the Gospel, the religious elite dispossess the people. With their corruption and thievery, the power elite ravage the country, destroy her institutions and impoverish the masses. The two elite groups need to cover each other’s flanks. Thus, there is a symbiotic alliance between them. It continues to thrive at the economic strangulation of the Nigerian masses. *Mr. Ezukanma, a public affairs commentator, wrote from Lagos.

DECEMBER 21, 2015

Dutch court says Shell can be liable for Nigeria spills

BRIEFING: From left: Minister of State for Petroleum, Dr. Ibe kachukwu and Permanent Secretary in the Ministry, Mrs Jemila Soara discussing during a World Press briefing on the coming hosting of 6th African Petroleum Congress and Exhibition coming up in March 2016 at their Corporate Headquarter in Abuja. Photo by Gbemiga Olamikan

Power alone gulps 40% of production cost —MAN T

he Manufacturers Association of Nigeria (MAN) has said that because of insufficient power supply, over 40 per cent of production cost in Nigeria goes into electricity generation by manufacturers. Mr Regard Odiah, a member of MAN and Chairman, Technical Committee on Operationalisation of Micro-Grid for Industrial Initiative, made the statement in Abuja when he presented the report of the committee to NERC. The committee was inaugurated two weeks ago by NERC and mandated to take a critical look at the energy laws in Nigeria. The committee was also required to come up with implementable policies and regulations that would address the numerous power challenges facing industries, especially the manufacturing sector. C M Y K

“Over 40 per cent of our production cost goes into provision of electricity supply for our manufacturing. Also when other infrastructural deficiencies are added, Nigeria becomes one of the most expensive countries in the world

to set up a business venture," he said. Odiah said the combined power generation capacity of MAN nationwide was 15,000mw while the Continues on page 18

Dutch Appeals Court ruled weekend that Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria. Judges in The Hague ordered Shell to make available to the court documents that might shed light on the cause of the oil spills and whether leading managers were aware of them. Friday’s ruling overturned a finding by a lower Dutch court in 2013 that Shell’s Dutch-based parent company could not be held liable for spills at its Nigerian subsidiary. The legal dispute dates back to 2008 when four Nigerian farmers and campaign group “Friends of the Earth” filed suit against the oil company in Netherlands, where its global headquarters is based. “Shell can be taken to court in the Netherlands for the effects of the oil spills,” the court ruling stated on Friday. Shell is also ordered to provide access to documents that could shed more light on the cause of the leaks.” Judge Hans van der Klooster said the court had also found that it “has jurisdiction in the case against Shell and its subsidiary in Nigeria”.

Continues on page 18

FIRS targets 500,000 new corporate taxpayers by March 2016

he Federal Inland Revenue Service (FIRS) says it expects to capture at least 500,000 new corporate accounts in its tax database by March 31, 2016. The Chairman of FIRS, Mr Babatunde Fowler, told State House correspondents in Abuja that the objective was to ensure timely collection of revenue on behalf of the Federal Government. Fowler said that the exercise would add to the 105,000 corporate accounts in the agency’s database. There is a big gap both on the terms of the individuals and also the corporate. "On the corporate side, we expect we are going to register at least half a million new corporate accounts

by March 31. We have started the campaign and in the last 45 days we have registered nearly 105,000 corporate accounts that have not been paying tax. “So I think it is time that we all put hands together and try and make sure that we support ourselves in supporting government so that government has the required revenue so the government can provide the services and the required infrastructure to make Nigeria the Nigeria of our dreams.’’ The chairman of the service said that the level of compliance with individual tax payment was low. He stated that at least 27 million Nigerians do not pay tax. Continues on page 18

18 — Vanguard, MONDAY, DECEMBER 21, 2015

Cover

Breaking the Nigerian Poverty Cycle through Entrepreneurial Revolution (2)

LAUNCH - From left: Charles Atiomu, Territorial Sales Manager, Total Nigeria Plc; Jeff Nnamani, Executive Director, Strategy, Total; Chizoma Okoli, Head, Corporate Banking, Diamond Bank Plc; Premier Oiwoh, Head, Operations and Technology Services, Diamond Bank and Olufemi Babajide, General Manager, Sales and Marketing Total at the launch of Diamond Bank ATM services at Total filling Stations held at Total Service Station, Lekki, Lagos.

Power alone gulps 40% of production cost —MAN Continued from page17 maximum generation from the central/national grid was less than 5,000mw and unreliable. According to him, this leaves a huge gap of power insufficiency to the sector. He listed time and fund as the two factors that posed challenges to the committee in producing the report. Earlier, the Chairman of NERC, Dr

Sam Amadi, expressed happiness and appreciation to the committee for preparing the report and coming out with the report on time. He assured the committee that the report would be submitted to the Minister of Power, Works and Housing, Mr Babatunde Fashola, for approval. Mr Frank Jacob, President of MAN, said that there were 28

industrial clusters in Nigeria, adding that the association spend N73 million every month on power generation to manufacture goods in the clusters. Jacob explained that with adequate supply of electricity, the association would manufacture more goods and the economy would be better and people enjoy improved standard of living.

Dutch court says Shell can be liable for Nigeria spills Continued from page17 The case has been adjourned till March for hearing. Shell’s Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Ltd (SPDC), said in a statement: “We are disappointed the Dutch court has determined it should assume international jurisdiction over SPDC. We believe allegations concerning Nigerian plaintiffs in dispute with a Nigerian company, over issues which took place within Nigeria, should be heard in Nigeria,” it said. Shell has always blamed sabotage for the leaks, which under Nigerian law would mean it is not liable to pay compensation. But the Dutch court said on Friday: “It is too early to assume that the leaks were caused by sabotage.” In January 2013, the district court in The Hague ruled that one of the farmers in the original suit was eligible for compensation from Shell’s Nigerian division for spills on his land. The farmer appealed C M Y K

over whether the parent company should also be liable. “Friends of the Earth” Netherlands Director Geert Ritsema said Friday’s ruling meant the three other farmers could proceed with claims for compensation for lost income resulting from spills. There are 6,000 kilometres of Shell pipelines and thousands of

people living along them in the Niger Delta,” he said. Other people in Nigeria can bring cases and that could be tens of billions of euros in damages.” In a separate case, Shell agreed in January to pay out 55 million pounds ($82 million) in out-of-court compensation to a community for two oil spills in Nigeria in 2008.

FIRS targets 500,000 new corporate taxpayers by March 2016 Continued from page17 “In terms of individuals it is still very low. I was at a meeting with the chairman of the SMEs and rightly so, he said that he employed close to 34 million individuals in that business. And as you know the SMEs are very important when it comes to economic growth. They provide employment, they also provide products that all of us use from toothpicks to matches and all that. “But the irony of that is that if they have 34 million or 35 million members, on our national tax data base you have less than Seven million individuals. So the issue here is that we have close to 27 million individuals who are not registered, who are not paying their taxes”. He stressed the need for the nation to save for a rainy day. "We have to be ready to save for that rainy day to make sure that we as a government and also as individuals put something aside,’’ he said.

hatcher ’s radical policies, successfully adapted across the US, Europe and large parts of Asia, sparked off a new world order and confirmed the evolution of global economic powerhouses. For a uniquely placed country like Nigeria, blessed with resources but hexed with endemic problems, these events hold tremendous relevance and opportunity. They are also crucial to Nigeria making progress towards the United Nation’s Millennium Development Goals of eradicating hunger and poverty and improving environmental sustainability, among others. The first lesson for Nigeria of course is the need for fundamental changes in outlook and practices with regards to promoting entrepreneurship as a means to permanently overcoming poverty and achieving grassroots development. Of equivalent importance is upgrading infrastructure and improving access to social services, especially health and education. The World Bank outlines a threepronged strategy for Nigeria to meet this challenge, which includes: 



Establishing a viable macroeconomic configuration that optimises incentives to the widest citizen base. P r i o r i t i s i n g accountability as a means of encouraging entrepreneurship and the subsequent delivery of quality services to the population. Adapting policy and public expenditure conventions suitable to promoting efficient growth and enhanced productivity in a way that brings tangible benefits to the poor.

Some of these suggestions have already been adopted. In 2003, the Nigerian government set up the National Economic Empowerment Development Strategy, in line with IMF poverty reduction policies, to achieve better fiscal management. The same year, fuel prices were deregulated and Abuja announced the privatisation of four national refineries. The current global economic downturn is certain to wreak further havoc on

Nigeria’s fledgling and often floundering economy. What will determine the final outcome of its nascent entrepreneurial revolution, to borrow a statement from Apple honcho Steve Jobs, is the amount of perseverance is backs it up with. A viable economic agenda for Nigeria that allows rapid entrepreneurial progress has to focus on fundamental adjustments: 

Creating a pro -active socio-economic environment that encourages creative and viable entrepreneurship from the grassroots level to onwards. Identifying and correcting infrastructure deficits and systemic imbalance inimical to small business.



Developing a credit regime – through relevant financial and industrial policy changes – that is sympathetic to small business realities. Promotion of lending through equity, and not debt, is of critical importance.



Removing administrative and trade barriers while simultaneously enhancing technical support and capacity building assistance for both existing and emerging entrepreneurs.



Mobilising the country’s significant human resources pool by revamping the education sector to provide v o c a t i o n a l , administrative and skill development training to rural and urban youths.



Creating efficient and effective mechanisms for regulation and oversight of enterprisedevelopment initiatives in general, and microfinance institutions in particular.



Maintaining political stability and authority of democratic institutions; fighting corruption and building social consensus on important issues to ensure broad-based success of macroeconomic policies.

Vanguard, MONDAY, DECEMBER 21, 2015 — 19

Who is afraid of Emefiele as Governor of CBN? M

any Nigerians do not seem to understand the role of the CBN in an economy. Some believe that the CBN is an authority in itself and does not take instruction from government. Yes, it is true that the CBN enjoys some autonomy; that is as far as its management is concerned. The CBN is the banker to the Federal Government and its economic and financial adviser. It is in the final analysis responsible to the president. There have been several uninformed comments as to why the CBN paid out so much to those who made official request to it to move money from their deposit or their budgetary allocation from the federal government in the last administration in particular. A little bit of history of the evolution of central banking may help put things in the right perspective. Economic history has it that what can be regarded as an early central bank was the Sveriges Riksbank, established in 1668, although it was short-lived In England in the 1690s, public funds were said to be in short supply and were needed to finance UK’s conflict with France. The credit of William III’s government was so low in London that it was impossible for it to borrow the £1,200,000 needed at 8 per cent. In order to induce subscription to the loan, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. The bank was given exclusive possession of the government’s balances, and was the only limited-liability corporation allowed to issue banknotes. The lenders would give the government cash (bullion) and also issue notes against the government bonds, which can be lent again. The

£1.2million was raised in 12 days; half of this was used to rebuild the Navy. The establishment of the Bank of England, the model on which most modern central banks have been based on, was devised by Charles Montagu, first Earl of Halifax, in 1694. Central Banks therefore are creation of governments. The mandate of the Central Bank of Nigeria (CBN) is derived from the 1958 Act of Parliament, as amended in 1991, 1993, 1997, 1998, 1999 and 2007. The CBN Act of 2007 of the Federal Republic of Nigeria charges the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government. The objects of the CBN are as follows: ensure monetary and price stability; issue legal tender currency in Nigeria; maintain external reserves to safeguard the international value of the legal tender currency; promote a sound financial system in Nigeria; and act as Banker and provide economic and financial advice to the Federal Government. Like any other bank, Central Bank keeps deposit for government, its ministries, Departments and Agencies. Many Nigerians, some very faceless have accused the CBN of being used as an ATM during the immediate past administration of Goodluck Jonathan. The CBN cannot deny a legitimate government in power access to public funds. Many of these allegations are coming from those who did not understand how the financial system works. Nigerians must learn to understand that the relationship between the CBN and the federal government is like that between a bank and a customer who holds either a

savings or current account with the bank. Just like a customer who issued a cheque to withdraw money from his account, the CBN when a payment mandate is issued by government agencies, looks at such mandate to ensure that the signature tallies with that of the mandated signatory before money from such agency’s account is released and once the CBN banking operations department is satisfied with the identity of the agency, it also checks to see that there is enough money in the account before paying; not minding whether the person wants it in cash or by transfer. In whatever forms the agencies wants it, the apex bank has no option than to pay. The CBN does not operate as federal government's internal auditor, whose responsibility is to check that the payment invoices and mandates being presented for payment are in accordance with corporate governance. Nigerians must

Removing another CBN governor now on no serious charges will make Nigeria look like a banana republic where anything goes in the eyes of foreign investors and the international community

also be aware that the CBN as a bank is neither a policeman nor an anti-graft agency to begin to question genuine request from constituted authority. The question to ask those calling for the removal of the current CBN head is if today the current government issues a cheque on CBN, will the governor ask the sitting President to state what he •Emefiele wants the money for and how he intends to spend it? If the serving security adviser to the President issues a cheque for money to be taken from security vote domiciled in the CBN, are Nigerians saying that the CBN Governor should say no, you cannot take such funds? So long as the withdrawals have the mandate of the President, the CBN is covered. The issue is that there are political undertones and hidden agenda in the call for the head of the Central Bank of Nigeria. In the first instance because the current CBN governor has made it clear that he is apolitical, many party stalwarts see him as a threat to their nefarious intentions. It was quite unfortunate that two weeks ago, the Minister of Information and Culture, Alhaji Lai Mohammed said that the Central Bank was turned to the ATM or piggy bank of a few people. The CBN is being unduly vilified because most people do not understand the relationship it has with governments and its agencies that operate an account with it. Truth be told, the CBN does

not honour mandates from government or its agencies with its own resources; it does so from these agencies' funds it is holding for them in their own accounts. There is a lot of ignorance out there. The money the CBN paid out in Dasuki’s case is not CBN’s money.” Are Nigerians aware of the details of the disbursement of the socalled Abacha loot? The fund was lodged in an account that belongs to the government of the federation. Are Nigerians aware that even the President of the country is not a signatory to the account? Are they aware that the only signatory to that account is the AccountantGeneral of the Federation and in all of these; nobody seems to notice that the office exists? Is it not now an open secret that the then Finance Minister, Dr. Ngozi Okonjo-Iweala wrote a memo asking the President to approve that the money be moved from the Federal Government account to the account of the Office of the National Security Adviser?. The CBN is at the moment being attacked by foreign investors and their media because the bank denied foreign exchange access to 41 items that can be produced locally that is now affecting their economy. It is also facing political pressure from hawks who want to see their candidate replace the current governor. What Nigerians must know is that the economy is in very bad shape and requires all hands on deck to fix it. It was political intrigue that resulted in the removal of Mallam Sanusi Lamido Sanusi from office toward the tail end of his tenure. That was about a year ago. His removal unnerved the Nigeria economy. Then the nation was still in good financial position. Removing another CBN governor now on no serious charges will make Nigeria look like a banana republic where anything goes in the eyes of foreign investors and the international community.

Business & Economy

68 million Nigerians improperly housed, says Federal Mortgage Bank MD

he Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Alhaji Gimba Ya’u Kumo, said last week that some 68 million Nigerians were improperly housed. Ya’u Kumo stated this in Abuja at a civil society interface organised by Initiative for Leadership and Economic Watch in Nigeria (ILEWN), a civil society organisation. The News Agency of Nigeria (NAN) reports that the

programme was organised to educate and enlighten Nigerians on the mandate of FMBN. Nigeria has about 17million to 20 million housing deficit. I think that figure was taken from World Bank, World Habitat Report of 2007. “If you go by this number and multiply it with at least four persons in a house, let’s say the father, the mother and two of their children, you will have a statistics of about 68 million people who are either

improperly housed or don’t have at all.” According to Ya’u Kumo, some of the causes of this housing deficit include refusal of financial institutions, insurance companies and some agencies of government to contribute to the National Housing Fund (NHF). Ya’u Kumo said that for the country to overcome this situation and move forward, highly placed private individuals must come into partnership with the

government for a lasting solution. He, however, said that the National Insurance Commission (NAICOM) had committed itself to ensuring that all insurance companies comply with the provision of the NHF Act. He said that the NHF Act mandates a person, especially the civil servant, to remit some percentage of his/her income to the National Housing Fund as part of life and non-life insurance. Ya’u Kumo said

that when the NHF Act was founded 23 years ago, the funding windows were divided into four collections where individuals make their contribution to housing development. The managing director restated that the nation would be in crisis, if all stakeholders did not work together to end homelessness in the country. Mr Splendour Agbonkpolor, the National Coordinator of the NGO, said the essence of the meeting was to educate Nigerians so that everybody would know his or her duty and responsibility.

20— Vanguard, MONDAY, DECEMBER 21, 2015

Corporate Report

FBN Holdings loses profit on rising credit losses

BN Holdings still towers above the rest of the banks in the industry by revenue but rising credit losses have robbed it of significant profit capacity this year. Impairment charges for credit losses made an upsurge of about 250% yearon-year at the end of the third quarter to stand at N46.64 billion. That has far exceeded the total impairment charges of N25.94 billion the bank made in the whole of 2014. The ability to convert revenue into profit has therefore weakened for the bank this year. At the end of the third quarter, net profit margin dropped from 17.2% at the end of 2014 to 12.8% - the lowest among the leading banks. The bank’s profit margin hasn’t come this low in many years. Interest expenses are equally hurting the bank’s profit capacity with an increase of 35.6% year-on-year in the third quarter. That is more than twice the increase in gross earnings, which led to a weak growth of 9.3% in net interest income. While the bank grew revenue by 17.2% year-on-year at the end of the third quarter, it lost 10% of net profit on account of rising loan losses and increasing cost of funds. Revenue growth is expected to slow down in the final quarter and the full year outlook indicates gross earnings in the region of N524 billion for FBN Holdings in 2015. That will be an increase of 9% over the gross income of N480.62 billion it reported in 2014. It will however be a major slowdown from the revenue growth rate of 21.3% recorded in the prior year. After tax profit dropped by about 10%

year-on-year in the third quarter to N50.22 billion. Profit growth decelerated from N40.06 billion at the end of the second quarter due to loss of profit margin. Based on the current growth rate, FBN Holdings is expected to close the 2015 operations with an after tax profit in the region of N67.7 billion. This indicates a likely drop of 18.3% in after tax profit for the bank to the lowest figure since

2012. Inability to get loan loss expenses and interest cost under control is the challenge facing the management of FBN Holdings in the current year. The two expenditure lines claimed virtually all the increase in interest income during the period. Impairment charges were already 80% above the N25.94 billion figure the bank made in all of 2014 by the end of the third quarter.

The bank devoted 15.5% of interest income to impairment charges for credit losses compared to 5.2% in the same period last year. At N107.46 billion at the end of the third quarter, interest expenses rose by 35.6% - more than twice as fast as the 17.5% growth in interest income. The bank also devoted an increased share of revenue to payment of interest expenses at 27.5% at the end of the third quarter compared to 24% in the same period last year. Management succeeded in achieving a moderated growth in respect of operating expenses at the end of the third quarter. That enabled it to save some cost by reducing operating cost margin from 48.6% to 43.3% over the review period. The cost saved here was however absorbed by the two major rising costs. The summary of the bank’s operations so far this year is that costs are growing generally ahead of revenue. Profit capacity has therefore weakened due to loss of profit margin. Net profit margin has dropped from 16.7% in the third quarter of last year and from 17.2% at the end of 2014 to 12.8% at the end of September this year. Declining profit margin is a fact of the banking industry generally since last year but FBN Holdings has lost considerable ground on profit margin on the industry performance ranking. Its profit margin is a distant lowest among the five leading banks. This explains why it is leading the industry by revenue but struggling for a third space on profit numbers. The bank earned N1.47 per share at the end of September, which is a decline from N1.70 in the same period last year. The full year earnings per share is projected at N1.88 for FBN Holdings in 2015. This means a likely drop from N2.55 earnings per share the bank reported at the end of 2014. An increase in the volume of shares from a bonus issue has reinforced the drop in earnings per share.

Oando: Profit capacity broken by sustaining revenue fall

ando’s cost-income structure has faltered with a sustaining decline in sales revenue and a continuing rise in costs. Turnover went down by 5.5% year-onyear at the end of September but cost of sales rose by 47%, which led to a 36% fall in gross profit. This has been the trend for the third year running. In 2013, the company lost 30.8% of sales revenue and in 2014, a further loss of 5.6% occurred. Profit drops happened for the second year in 2013 and huge losses have followed for the second year in 2015. The collapse of crude oil price after the company’s acquisition of the $1.5 billion ConocoPhilips’ Nigerian business means a lot of provisions for losses in asset values will have to be made in the accounts. This year, an impairment charge on assets to the tune of N23.6 billion has appeared and that claimed more than one-half of gross profit. A rise of 35.6% in net finance cost to N38.83 billion at the end of the third quarter blew up an operating loss of N13.18 billion into a C M Y K

pre-tax loss of over N52 billion. The company’s balance sheet shows that borrowings remain large despite some reductions. It has long-term debts of nearly N141 billion and shortterm borrowings amounted to over N101 billion at the end of the third quarter. It is under cash flow pressure and needs to raise new money even for loan repayment. Despite a new issue of shares, the company ended third quarter trading with a net cash

utilisation of over N77 billion for financing activities. Shareholders appear to be getting the opposite of what they expected from Oando and consequently the company is equally one of the leading share price declines so far this year. At the close of business last Friday, Oando closed over 63% down from its January opening price. In place of the big profit expected, big losses have occurred. Between the

Shareholders appear to be getting the opposite of what they expected from Oando and consequently the company is equally one of the leading share price declines so far this year. At the close of business last Friday, Oando closed over 63% down from its January opening price.

final quarter of last year and the third quarter of this year, Oando has built a total loss of about N231 billion. With that, retained earnings of close to N34 billion at the beginning of 2014 was wiped off and an accumulated loss of over N201 billion appeared at the end of the third quarter. Net assets have dropped to one-third of the opening figure in 2014 and this is net of the 32.5% increase in paid-up capital with substantial premium in the course of the current financial year. The company’s loss figure at the end of the third quarter looks likely to swell up further at full year, which has been the trend since 2013. Its profit crash of 87% in 2013 to N1.40 billion happened against an expectation of a strong profit recovery in the year based on the third quarter report. While the company posted an after tax profit of N10.70 billion at the end of the third quarter in 2014, it closed the year with a loss of nearly N184 billion. With rising losses and diminishing net assets, Oando’s dismal earnings reading isn’t expected to change any time soon.

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22— Vanguard, MONDAY, DECEMBER 21, 2015

Banking & Finance BY BABAJIDE KOMOLAFE

FCMB promo produces 643 winners

nother set of 643 customers of First City Monument Bank (FCMB) Limited have emerged as winners of cash and various exciting gifts at the second draws of the Bank’s ongoing reward scheme tagged, ‘’FCMB Millionaire Promo Season 2”, held nationwide on Tuesday, December 15, 2015. The electronic selection of the winners was witnessed by officials of the National Lottery Regulatory Commission, Consumer Protection Council and thousands of customers of the financial institution. While three lucky customers were rewarded with the sum of N1million each at the regional draws held in Abuja, Lagos and Enugu states, 640 others smile home with LED televisions, generating sets, decoders, tablets, smart phones and other consolation prizes.

C&I Leasing, Floatel Reliance partner on support vessels

&I Leasing plc., a leading Nigerian content player in the offshore marine vessel space, has announced a strategic partnership with Floatel International, owners and operators of some of the world’s most modern, safe and technically advanced fleet of semi-submersible accommodation and construction support vessels (Floatel). Emeka Ndu, Group Managing Director, C&I leasing plc, while speaking at the MOU signing ceremony in Lagos recently, disclosed that with the new partnership, C&I Leasing now holds the exclusive rights to market Floatel services and their vessels in Nigeria for a renewable period of one year. “We are particularly excited at the prospects of this emerging sector. This partnership represents another significant milestone in the efforts of the organization to compete even more aggressively in the offshore marine sector, and to continually create value for investors.” he said. Peter Jacobsson, CEO Floatel International, on his part informed that the company which was established in 2006, is focused at satisfying the market’s demand for a new generation of offshore floatels that are cost efficient in operations, and meet the increased market and regulatory demands. C M Y K

terling Bank is set to increase its customer base by attracting one million new customers in 2016. Managing Director and Chief Executive Officer of the Bank, Mr. Yemi Adeola disclosed this at the annual press conference of the banks, adding the bank will also complete ongoing efforts to raise additional fund to beef up its capital base. He said, “As we get ready to go into 2016, we are focussing on four key areas strategically. The first is to improve our funding and customer counts. We intend to increase our customer base by one million new customers in 2016.” “At this point we are adequately capitalised but we are pursuing Tier 2 capital. We are at the tail end of it and hopefully by January or February, we would have additional debt capital. In terms of equity capital, I think we are good. At Capital Adequacy ratio of 19 percent, when what is required is 10 percent, we are not under capital pressure at all. Sterling Bank was formed ten years ago following the merger of five legacy financial institutions namely Magnum Trust Bank; Indo Nigeria Bank; Trust Bank of Africa; MBM Merchant Bank and NAL Merchant Bank. Listing the achievement of the bank in its ten years of existence, Adeola said that the Total Assets of the bank has grown from N110 billion in 2006 to N1 trillion in 2015. He disclosed that the Bank expanded its branch network by 135 from 50 in 2006 to 185 in 2015 said plans were on to ensure that the Bank is ranked among the top six banks in the country by year 2020. Besides, Adeola stated that the deposit liabilities of the Bank grew from N75 billion

AWARD: From left, Camp Director, FCT NYSC Orientation Camp, Mrs. Iruma Blessing, Opaluwa Ojochogwu (corps member and joint first prize winner), Deputy Director, Multi Stakeholders partnership, National Information Technology Development Agency [NITDA], John Chima, Awulonu Stephen (corps member and joint first prize winner) of N250,000 in the NITDA NYSC ICT Innovation & Entrepreneurship Programme for Corp Member, Chinyere Ekwe and National Coordinator, Office of ICT Innovation& Entrepreneurship of NITDA, Bunmi Okunowo during the presentation ceremony held at the parade ground in Abuja on Wednesday.

Sterling Bank targets 1m new customers in 2016 in 2006 to N583 billion in 2015 while equity rose from N26 billion to N88 billion. Similarly, the Bank’s customer base rose from 200,000 in 2006 to 1.4 million in 2015. Adeola who was supported by the Executive Director, Corporate & Investment Banking, Mr. Kayode Lawal and the Executive Director/ Chief Operating Officer, Mr. Yemi Odubiyi also explained that the Bank, within ten years had deployed 801 ATMs nationwide when it had none in 2006. Speaking on the major activities of the Bank in the current year, the Bank’s Chief Executive said that “the outgoing year has been a beehive of activities and we

have good reason to celebrate. The Bank was involved in a lot of activities that added value not only to our customers but with great impact on all Nigerians”. Some of the major activities for the year according to Mr. Adeola included the organization of the first Sterling MSME Academy to enhance the capacity of Micro, Small and Medium Enterprises; the financing of the acquisition of 434 BRT buses by the Lagos State Ministry of Transport to improve the transportation system in Lagos State; the financing of Labana Rice Processing Mills in Kebbi to support the diversification programme of the Federal

Union Bank unveils 4 new-look branches

nion Bank of Nigeria Plc has unveiled four of its recently redesigned and more modern branches in Lagos state. This is part of the bank’s efforts to continue to deliver superior banking experience to its customers. The branches are located at Oba Akran, Allen, Alausa and the Agege areas of Lagos. Union Bank said the redesigned branches are part of the Bank’s plan to offer “simpler and smarter ” banking solutions to customers and prospects. The branches have been exquisitely designed and furnished to wear a sophisticated look.

Speaking to journalists at the unveiling ceremony, the Group Managing Director/ Chief Executive Officer of the bank, Mr. Emeka Emuwa, noted that the new-look was in line with the bank’s rebranding objectives. “This is aligned with the new Union Bank brand identity that we launched six weeks ago,” he said. “What we’ve tried to do here is to give our customers a more contemporary environment in our business locations but still retaining the old Union Bank tradition, and then making sure that the branch’s layout is geared towards helping our customers access their

services much more efficiently. “It is basically a continuation of the new brand identity that we launched, which is more modern, energised, vibrant and contemporary. The technology you have in this branch is the same everywhere else. Back in April, we upgraded our core banking systems, and the benefits are visible. Customers should simply expect simpler, smarter, service,” Emuwa explained. The Union Bank boss boss also said unveiling the redesigned branches was an ongoing process that would continue for the next two months.

Government; the execution of an e-library project at the college of Education, Ikere Ekiti to support the education sector and the execution of two editions of the periodic cleaning exercise to support a clean environment across the country. During this period, the Chief Executive Officer stated that the Bank was PCIDSS 3.0 recertified, making it the third bank to achieve this status in the country; The financial institution also procured a Visa principal status, which affords it the ability to issue cards and acquire merchants directly. Other notable feats included a successful integration of its mobile wallet to the NIBSS Instant Pay platform which allows unbanked and semi unbanked customers to perform inter-bank transfers on Sterling Money; 13 additional branches were also opened and eight branches re-modelled. He however disclosed that all the contributions of the Bank did not go unnoticed as it won the Most Innovative Bank and Best Corporate Governance awards in the West Africa Awards organized by The Banker Africa 2015; Best Bank Website of the year award by the Nigeria Technology Awards and emerged as a finalist- Best New Product/Service Recognition for Disruptive Technology/Innovation for Social Lender at the EFMA/ Accenture Distribution and Marketing Innovation Awards 2015.

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24— Vanguard, MONDAY, DECEMBER 21, 2015

Banking & Finance

Banks seek investment outlets for N1tr excess cash FRC holds 12th financial reporting summit

FG, others to pay more for foreign debt — AFRINVEST

minent financial experts in the private and public sectors of the nation’s economy are expected to brainstorm on the new uniform code of corporate governance at a two-day 12th Financial Reporting Summit of the Financial Reporting Council of Nigeria (FRC) which will take place in Lagos this week. According to the spokesman of the FRC, Mr Mack Ogbamosa, the summit which has the theme “National Code of corporate Governance for Nigeria for Nigeria: A new dawn in Compliance” would attract prominent players in the private and public sectors of the economy such as former Nigerian High Commissioner to the United Kingdom, UK, Dr Christopher Kolade, the Minister of Industry, Trade and Investment, Dr Okechukwu Enelemah, the Commissioner for Insurance and CEO of National Insurance Commission (NAICOM) Alhaji Mohammed Kari, Head of Service of the Federation, Mrs Winifred Ekanem OyoIta.

anks are desperately searching for how to invest the over N1 trillion of excess cash in their vaults. This desperation was reflected in trading for treasury bills (government securities) where banks and other investors demanded for 291 percent more bills than the amount offered for sale by the Central Bank of Nigeria (CBN). Trading results show that banks and other investors demanded for N791.42 billion worth of treasury bills but the CBN offered N202.4 billion. Further analysis show that in the secondary market, where existing bills are sold, the CBN offered N50 billion worth bills (Open Market Operation, OMO) while investors demanded for N236.84 billion, out of which the apex bank accommodated N233.84 billion. At the Primary market, where fresh bills are sold, the CBN offered N152.4 worth of fresh bills, while investors demanded N554.58 billion, out of which the apex bank accommodated N155.4 billion. Recall that the CBN on Tuesday November 24 th , lowered interest rate it pays on bank’s excess cash deposited in its Standing Deposit Facility (SDF) to 4.0 percent from 11 percent. Since then banks have been battling with where to invest their excess cash. Investigation revealed that volume of excess cash in bank’s vaults rose during the week, due to reimbursement for unmet demand for foreign excess exchange, and payment of matured treasury bills. From N665 billion on Monday, excess cash rose sharply by 84 percent to N1.19 trillion on Tuesday before dropping N262 billion on Wednesday. On Thursday excess cash rose again by 131 percent to N606 billion due to repayment for matured treasury bills. Consequently, cost of funds (interest rates) remained low in the interbank money market. According to Afrinvest Plc, “Money market rates stayed at low levels with the Overnight (O/N) lending and secured Open Buy Back (OBB) lending instruments closing at 0.5 percent and 1.0 percent respectively on Monday. The level of liquidity remained robust at over N1 trillion mid-weeks as

Abuja World Trade Centre set for delivery June

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ubscribers as well as prospective home cum shop owners at the World Trade Centre, Abuja have a cause to be happy as the Phase 1 of the sprawling towers is due for delivery in June 2016. Mr. Femi Awopetu, Assistant General Manager, Corporate Communications, Churchgate Group, developers and promoters of the project who dropped the hint while giving an update on the mixed development, added that the Phase 2 of the development is expected to commence the same June 2016.Awopetu who noted that the Phase 1 is being completed with finishing touches preparatory to its delivery in June, said “With the quality and comfort of the World Trade Center Abuja, high-end property seekers have been assured of the same satisfaction derived from living in a luxury apartment with world class amenities in Berlin, New York or Dubai”.According to him, the WTC, Abuja has been developed with the same quality expected from the WTC brand, pointing out that the fundamental principle of luxury is the capacity to blow people’s minds.

BY BABAJIDE KOMOLAFE

Emefiele, CBN Governor we saw additional inflows of N155.4 billion from maturing T-bills, hence money market rates recorded marginal changes. “However, we observed a moderate uptick on Thursday with the O/N and OBB rising to 1.0 percent and 1.4 percent respectively, majorly due to the T-bills Primary Market Auction (PMA) held the same day and provisions Banks made for CBN foreign exchange auctions. The O/N and OBB rose 54 basis points (bps) and 42bps Week-onweek (W-o-W) to close at 1.0 percent and 1.4 percent respectively; while the NIBOR closed flat W-o-W. “Sentiment differed across tenors in the T-bills market as we saw bullish sentiment at the short end of the curve but s e l l i n g activities was recorded at the longer end as dealers exited to take position at the T-bills PMA on Thursday. This dragged Average yields up by 42bps W- o -W to 4.4% on Friday. At the PMA held, the 91, 182 and 364 Days tenured bills were issued at Stop Rates of 4.0 percent, 6.2 percent and 7.5 percent respectively, lower than 5.6 percent, 7.0 percent and 8.0 percent stop rates during the December 2nd 2015 PMA. “The lower rates at this week’s auction are due to the high level of liquidity. We expect interbank money market rates to continue to trend at the current level against the backdrop of robust liquidity whilst we anticipate some level of profit-taking at the longer end of the curve. Tenured deposits rate might likely increase towards the end of the year as portfolio managers rebalance their portfolio towards equities.” FG, others to pay more for foreign debt-Afrinvest

Adeosun, Minister of Finance Meanwhile Afrinvest has “Therefore, another scenario predicted that the interest rate is a further loss in the value increase by the United States of the domestic currency Federal Reserve’s will make (Naira) against the dollar. We the federal government and perceive the stability Nigerian companies to pay portrayed by the Apex Bank more as interest rates on in terms of the official rate which has been kept at N197 foreign debt. On Wednesday, the Federal as contrived, given the Reserve increase its policy significant N80/$ spread to rate to 0.25 percent from 0.05 parallel market rate of N280. percent, thus ending seven Consequently, we expect the years of low interest rate pressure on the CBN to regime in the world’s largest devalue to intensify as dollar economy. This, according to receipts to government Afrinvest will lead to further treasury continue to shrink in weakening of the naira, and Naira terms while current increase cost of foreign debt. account deficit worsens. It stated, “Prior to the Fed- “Finally, higher interest rate Fund rate hike, restriction on in the US and a stronger foreign exchange by the dollar will increase cost of Central Bank of Nigeria foreign debt. The recently (CBN) has constrained released Medium Term market activities, fuelled Expenditure Framework higher inflation rate and (MTEF) for 2016 shows that depressed output growth in fiscal arm is budgeting an Nigeria. While official and expansionary 2016 with a interbank market rate total budget of N6.08tn steadied at N197.00/$ to relative to N4.48tn in the 2015 N199.10/$, parallel market budget. Consequently, the rate has depreciated to N280/ budget deficit is expected to $ in December 2015. rise from N1.04tn in 2015 to and foreign Increased flow of fund N2.19tn towards the US economy due borrowing is budgeted to to higher rate environment account for about 29.0% (N635.88bn) of the total points to a stronger dollar. financing for the deficit. “Following the Fed decision, the cost of borrowing for the government, is expected to rise. Furthermore, the cost of servicing FGN and Corporate We perceive the Eurobond worth US$6.2bn stability (US$2.5bn & US$3.7bn) is portrayed by the expected to hike as a result of stronger dollar and weaker Apex Bank in naira. Notwithstanding the terms of the anticipated impact as noted official rate above, the short term impact which has been in Nigeria is expected to stay muted given that kept at N197 as macroeconomic concerns in contrived, given the domestic economy had the significant already forced market actors to adjust ahead of the N80/$ spread to announcement.”

parallel market rate of N280

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26— Vanguard, MONDAY, DECEMBER 21, 2015

Corporate Finance

DiamondXtra makes additional 15 millionaires BY PRINCEWILL EKWUJURU

iamond Bank Plc through its DiamondXtra season 8 has added fifteen Nigerians to the list of millionaires in the country. The millionaires emerged through a live draw in Lagos, which was witnessed by industry stakeholders, customers, potential customers, shareholders, journalists, the general public and the management of the Bank. Thirteen of the winners won a million Naira each while one of the Bank’s customers won N2 million. The star prize of Salary4Life was carted away by Imoh Udoh in Akwa Ibom State, which entitles him to a monthly payment of N100, 000 for the next 20 years. Speaking, Aisha Ahmed, Divisional Head, Consumer and Privilege Banking stated that since the Bank initiated the special account, it has given its numerous customers the unique privilege to enjoy multiple benefits in one account. “DiamondXtra was launched in 2008 to reward our loyal customers, both old and new. This event marks the first monthly draw of the new season to commemorate the launch of Season 8 and 15 lucky customers have emerged winners. The reward scheme is integrated into the DiamondXtra proposition so every customer on the DiamondXtra account has equal opportunity of winning through the transparent electronic draws. As we enter into the new season, we would like to reassure all our loyal customers that Diamond Bank will constantly seek robust platforms like this to enrich them.” Corroborating, Osita Ede, Head, Mass Market Segment stated that the launch is a special feature of Season 8, with the introduction of regional quarterly draws to ensure winners emerge from every region in Nigeria including the North, South-East, South-South, Lagos and West.

PARLEY - From left: Chief Executive Officer, Sofunix Investment and Communications, Mr. Sola Oni; Chief Executive Officer, Geo Medical Centre, Dr. Adetomiwa George; Managing Director, Vono Products Plc, Mr. Tunji Anjorin; and Group Head, Sales and Marketing, Vitafoam Nigeria Plc, Mr. Sola Owoade, during a press parley to inaugurate Vono Hospital Furniture in Lagos.

Vono laments fake products, seeks FG’s assistance By PETER EGWUATU

ono Products Plc, a company quoted on the Nigerian Stock Exchange, NSE has lamented the negative impacts of fake products on the company’s business and appealed to the Federal Government to intensify efforts in combating influx of these products into Nigeria. The Managing Director, Mr Tunji Anjorin, while addressing the company ’s trade partners at a Press Conference during the unveiling of the company’s new hospital furniture in Lagos explained that influx of fake products, low government patronage and high exchange rate of the Naira to other convertible currencies have moderated capacity utilization in the real sector. Vono Products Plc has introduced new hospital examination bed, classic bed, cabinet and drip stand to enhance service delivery in the hospital. Anjorin stated that the hospital bed was a product of extensive research to address some of the critical issues affecting examination of patients in the hospital. He noted that despite the inclement operating climate in Nigeria, Vono Products was set to deliver superior products at all times. According to him “the examination bed had been designed for comfort, the drip is adjustable while the bedside cabinet is not only waterproof but good for storage.” Anjorin explained that the

company had produced the furniture in commercial quantity and many hospitals in both the private and public sectors had embarked on placing orders on the new products. He re-stated the company’s resolved leverage on its strong brand to expand its products and services and boost shareholder value. “Despite the harsh operating environment, management is working round the clock to ensure timely delivery of quality products at all times. “Our hospital furniture,

particularly, our Examination Bed is a product of research and understanding of the needs of the end users particularly the functionality and durability as our basis for design. These components remain part of what Vono holds dear and what keeps our customers endearing to us. “We are determined to satisfy our customers by constantly anticipating their needs and satisfying them even before they realize that such needs exist. “, Anjorin assured.

He assured the company’s shareholders of increased value as the company would continue to place premium on quality and affordable products despite the high production cost. He stated that the company had capacity to meet demand at any point in time and end users of the products enjoy after sales service. Making a special presentation on the new products, Vono Products’s Project Manager, Mr Raheal Oshinubi explained that the three furniture were tailormade to enhance service delivery in our hospitals. He noted that the products’ quality conformed with international best practices. Endorsing the products, the Chief Medical Officer, GEO Medical Center, Dr Adetomiwa George who described Vono’s products as of highest quality recommended the new furniture to all hospitals. He commended the company for boosting the government’s local content policy. Speaking on the prevalence of fake products in Nigeria, the Group Head, Sales and Marketing, Vitafoam Nigeria Plc, Mr Sola Owoade noted that companies were cooperating with the statutory organizations such as the Standard Organization of Nigeria (SON) on surveillance in order to arrest the perpetrators. On the cost of foams in Nigeria, Owoade advocated the use of Consumer Buying Rights to expose consumers to their peculiar needs as currently done by Vitafoam Nigeria Plc.

Bloomberg to acquire Barclays' risks analytics, index solutions business

loomberg L.P. has announced that it has entered into an agreement to acquire Barclays Risk Analytics and Index Solutions Ltd. (“BRAIS”), a leading provider of benchmark and strategy indices, portfolio analytics, risk and attribution models, and portfolio construction tools. BRAIS’s benchmark indices span global markets covering multiple asset classes, most notably the Barclays Family of Aggregate Bond Indices. “As financial markets continue to evolve, our clients need and expect the index business to evolve too,” said Michael R. Bloomberg. “Combining the market-leading Barclays indices and their superb team with our data management, analytics and distribution will provide more independence, liquidity and transparency to the marketplace, improve industry innovation and further meet the diverse needs of our global client base.” The BRAIS acquisition will extend the complementary investments that Bloomberg has made in the index business to date and drive further value to Bloomberg clients, as these indices are integrated into Bloomberg’s analytic dashboards, portfolio analytics, order management systems, and execution management systems. Bloomberg currently participates in the index business through the

Bloomberg Commodity Index, also known as BCOM (formerly the UBS-Dow Jones Commodities Index), and the Bloomberg AusBond Indices (formerly the UBS Australia Bond Index family). Bloomberg has also increased its investments in PORT, the company’s multiasset portfolio risk and analytics tool that has seen significant growth over the past five years. The Company intends to accelerate its investments in this area by acquiring the intellectual property in POINT, Barclays’ portfolio analytics solution, and incorporating BRAIS IP into PORT. Barclays has agreed to continue to operate POINT for 18 months post completion in order to help clients transition to PORT. “At a time when market structure change is causing increased demand for innovative solutions in fixed income, the industry and our mutual clients will benefit greatly from the combination of these assets,” said J.P. Zammitt, Global Head of Financial Products. “BRAIS’s talented team will bolster our investments and help us continue to innovate around better creation, sharing, publishing and benchmarking tools, as well as portfolio and risk analytics.”

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Corporate Finance

SEC pushes for listing as requirement for govt contract By NKIRUKA NNOROM

he Securities and E x c h a n g e Commission (SEC) has called on the Federal Government to include stock market listing as one of the conditions for companies seeking to secure government contracts to qualify for such contracts. This will force companies that wish to enjoy such contract to seek listing in the stock market, Mounir Gwarzo, Director General, SEC, said in a forum with journalists in Lagos. He posited that highest rate of taxes paid to the government come from quoted companies, and hence, the need to encourage more companies to list. He said: “one way of ensuring that companies pay tax is when those companies are listed. If you look at the statistics of companies that pay tax in Nigeria, greater proportions of them are companies that are listed on the Exchange. So, within the mantra of this government, which is to ensure that all those linkages are closed, I think that government should ensure that all those companies are listed. “Some of us are of the opinion that government should even come up with a policy that for any company that will enjoy

REAN: From left: Chief Anthony Idegbe (SAN), Director, Royal Exchange Plc; Oscar Onyema, CEO, Nigerian Stock Exchange (NSE); Mr. Chike Mokwunye, GMD , Royal Exchange Plc; Miss Sheila Ezeuko, Group Company Secretary and Alhaji Auwalu Mukhtari, Group Executive Director during the Royal Exchange Assurance Bell Ringing at the floor of NSE in Lagos. government contract up to certain amount of money, it must be listed, because for you to be listed, it means that there is transparency and you are likely to have better governance and certainly, you cannot run away from paying tax.” He stated that the Commission is already in talks with telecos to list and has reached an advanced stage with them. “Like I said, listing is certainly going to be one of the key initiatives that the

governing council will look at next year. Luckily enough, there is conversation already

This will force companies that wish to enjoy such contract to seek listing in the stock market

Forte Oil targets N11.09bn profit after tax in 2016 ... to raise capacity of Geregu Power Plant to 435Mw By NKIRUKA NNOROM

20 more winners emerge in Fidelity Bank Save 4 Shelter promo

orte Oil Plc said it plans to grow its profit after tax for the financial year ended December 2016 to N11.09 billion. The company also targets profit before tax of N12.84 billion for the same period, while the revenue for the period is expected to settle at N22.30 billion. Outlining some of the strategies to be deployed by the company to achieve the set target, the Group Managing Director, Mr. Akin Akinfemiwa, who spoke at the Investors’ Conference in Lagos, said the major driver of the expected financial objective would be the company’s involvement in lifting crude oil in the country, a development, he said was not reflected in expected financials of 2016. Additionally, he said the company would complete major overhaul of Geregu Power Plant, which it owned 51 per cent, to restore the plant to the installed capacity of 414MW and add additional 21MW in order to bring the total capacity to 435mw. The Forte Oil boss explained that going into 2016, the company would pursue organic and inorganic expansion, saying that it hopes to acquire additional 30 strategic retail sites in key business areas, as well as develop five retail centres with convenience stores.

He further stated in pursuing increased profitability, Forte Oil plans to introduce more product offerings (Bitumen, LPFO and LPG), and “will conclude plans with four reputable partners to roll out 70 brand new redesigned lube bays nationwide under our brand name – FO Quick Fix.” Akinfemiwa informed the investors that the company would commence the roll out of the new lube bays in January 2016 as well as launch its e-commerce site – FO Quickbuy – to allow customers make purchases online. According to him, “Forte Oil will deepen focus on high margin products by increasing lubes and throughput per station. We will also exploit LPG business particularly, LPG retailing and bottle refilling and optimise and expand the Geregu Power Plant assets.” “We will also diversify into upstream space through profitable acquisition of upstream assets, harness partnerships with convenience stores, financial institutions and telecommunication firms and increase footfall to our station. “We will also make accretive acquisitions by exercising bid/pricing discipline, he said, adding “in the coming year, we are going to pursue aggressive mergers and acquisitions along the energy value chain and achieve market dominance through acquisition of retail infrastructures/assets.”

with telecoms on the need for them to be listed. At one point, we reached an advanced level with them. Some of the issues they raised, we were able to assure them that we will address them. “At one point, we said you can actually be listed on the Exchange without necessarily raising funds and we think even some of them that don’t need fund could still be listed.” Speaking listing by small and medium enterprises, Gwarzo said there is need for the federal government to introduce incentives like tax holidays to encourage more of them to list. “We are looking at what we need to do that we have not done in terms of encouraging the listing of SMEs. Luckily enough, within the growth and emerging markets, a very robust and comprehensive report was done. The International Organisation of Securities Commission (IOSCO) committee on SMEs set up a three-member committee to look at how we can encourage the listing of SMEs within the growth and emerging markets; the report has been submitted and we have shared with key stakeholders. “We have looked at the report and seen areas we need to improve on and one of the things we have discovered is the issue of incentives. “Government must come up with incentives that any company that is listed the under SME that has operated for just two to three years, there will be tax exemption. So, when we finish with that report, we will look at areas that that government can do.

idelity Bank Plc has rewarded 20 more customers that emerged winners in its on-going Save4 Shelter promotional campaign with cash prize of N6 million and other consolation prizes. The promo draw commenced about three months ago and peaked last month with emergence of a Duplex winner in Abuja. Besides other prizes left to be won, two more duplexes located in Lagos and Port-Harcourt will still be won by lucky customers in the subsequent months. To qualify for the bi-monthly draw and be legible to win one of the duplexes, a customer is expected to open a savings account and grow the balance to N50, 000 or top up existing savings account with N50, 000. Qualification for the monthly draws that entitle customers to win any of N2 million, N1 million or N500,000, requires a customer to also open a savings account and grow the balance to N20,000 or top up an existing account with N10,000. Meanwhile, the third draw, which took place at the bank’s head office in Lagos, produced six winners of N500,000 (Five hundred thousand naira) each, a winner of N1 million and star prize winner of N2 million, including 12 consolation prizes of generator sets and refrigerators. In her comment at the event, Mrs Chijioke Ugochukwu, Executive Director, Shared Services, Fidelity Bank, said: “While trying to pursue a strategy of financial inclusion, we have brought a lot of smiles to the faces of our customers and I think it is fair comment to say that the promo draw so far has been very successfully, but we are far from finished. This is just 2015 going to close, but in quarter one 2016, we will start again. “There are still two houses to be won, one in Port-Harcourt and the other in Lagos. In the weeks ahead, we will be showcasing the photographs of these houses before they are won so that Nigerians and others interested savers can see for themselves what we have for them.” Mr. Obaro Odeghe, Regional Bank Head, Apapa and the Promo Manager, said: “Beyond giving out prizes to people that have won, the promo is in line with the bank’s strategy of financial inclusion of getting many Nigerians to save and create savings culture among Nigerians.”

28 — Vanguard, MONDAY, DECEMBER 21, 2015

Banking Review

Banking industry environment:

2014 -2016 Challenges By Emeka Anaeto, Economy Editor

The continuing headwinds in the economy may be defining the sustenance of the resilence banks have demonstrated in their 2014 operations. A consecutive year of severe negative operating environment may end up signposting both 2015 and 2016 as seasons of locust after signficant rises in performance indicators in the previous three years. Much cannot be understood in the study of Nigeria’s banking industry in the last two years without the background provided by the first major regulator induced consolidation in the industry under Prof. Chukwuma Soludo led Central Bank of Nigeria, CBN, in 2004 – 2009. l a

ndustry analysts believe Soludo was set to build

better banking industry by share size in all respects especially capital base. By that the banks would be in better position to support economic development and less susceptible to the risks of bank failures, which had almost become the common phenomenon of Nigerian banks. Up until then banks were challenged with issues of persistent liquidity, poor asset quality and undetrcapitalisation. Banks also depended majorly on public sector deposits. Soludo thus pursued vigorously the agenda of recapitalisation banks by increasing the minimum capital base from N2billion to N25

•Kemi Adeosun, Finance Minister billion, an unprecedented 1150% jump. Landmarks in the industry under the regime includes: ·Elimination of fringe players and establishment of relatively bigger banking institutions with solid capital base. ·Strengthening of regulation of the banking system thereby creating healthier banks ·Establishment of a strong universal banking model which transformed most merchant banks into commercial banks with healthier competition. ·Entrenchment of electronic banking including online transfers, Automated Teller Machine (ATM) and other interbank platforms. ·Increased capital bases encouraged banks to diversify into many new products and services which further drew more customers into the financial system. But many analysts believe the banks at this time were

•President Muhammadu Buhari1

carried away by the euphoria of their sizes and balance sheets which grew astronomically post-capatilisation. The total assets of commercial banks in December 2006 (one year after consolidation) had grown by approximately 60% to N7.2 trillion from N4.5trillion. The huge resources soon found itself into bad businesses at the same time global financial crises was seeping into Nigeria. The combined effect was a bubble burst. The bubble burst and the Sanusi phenomenon. The 2008/2009 global financial crisis brought new dimension into financial system regulation of the CBN following the events that played out. The year 2009 was a transition year between the administration of Soludo and the Mallam Sanusi Lamido Sanusi led CBN. The Nigerian banking system and financial

market experienced a major shock arising from the contagion effect of the 2008 global financial crisis and decline in global oil prices on the international side and poor corporate governance, weak risk management framework and significant exposure to margin loans on the domestic front. These factors led to the insolvency of eight banks which were classified as being in grave situations. The total toxic assets that were absorbed by AMCON at this time was N5.7trillion. Against the backdrop of these challenges, the monetary policy anchor of the CBN following the entry of Sanusi as governor was anchored on four pillars of banking reforms namely: ·Enhancing the quality of banks ·Establishing financial stability ·Ensuring the financial sector evolution

·Ensuring the financial sector contributes to the real economy Though many observers believe the risk management and corporate governance focus of Sanus’s CBN was relatively commendable stability in the sector was more of a transient effect of a relatively stable economy of the time as things began to go bad with reversal of oil revenue inflow into the economy in the second half of 2014. Also despite the CBN’s attempt to ensure the banks remain responsive to activating a financially driven real sector, the impact has not been too significant. However due to other circumstances Sanusi’s tenor at CBN ended abruptly and controversially few months to the full statutory term haven been suspended by the government. This formed the backdrop for the new CBN administration under the leadership of Godwin Emefiele which rolled out plans in 2014 geared towards running a people focused Central Bank with deliberate effort to reduce interest rate, maintain price and exchange rate stability and stimulate domestic growth. Major highlights of the planned policies include the pursuance of gradual reduction of interest rate with its attendant impact on both deposits and lending rates comparable to the pattern in other emerging and African economies. It also seeks to maintenance of exchange rate stability and sustenance of managed float regime so as to preserve the value of the domestic currency given its import dependent nature through the conservation of external reserves. Emefiele was set to creating financial system stability by managing factors that create liquidity shocks and zero tolerance practices that undermine the health of financial institutions. He seeks a zero tolerance policy on fraudulent borrowers and he also reinforced the cashless policy which was introduced in 2012 to help strengthen the payment system. Major policy actions of the Emefiele led CBN points towards the continuation of hawkish policy. His CBN appeared ambitious with its plan to simultaneously pursue lower interest rate and exchange rate along steady price level given the challenges of the time when the new Governor came on board. However, the gradual wind-

•Continues on page 29

Vanguard, MONDAY, DECEMBER 21, 2015 — 29

Banking Review •Continued from page 28 ing up of the US Quantitative Easing program, slowing inflows into emerging and frontier market, the build up to 2015 elections, fiscal fragility due to falling oil prices, dwindling external reserves and fiscal policy uncertainties were some of the more daunting issues requiring a hawkish strategy than a finance agenda. It is noteworthy that every CBN Governor in the last 3 administrations has had one form of global or national challenge to contend with. While Soludo’s CBN battled with issues of banking consolidation, the Sanusi was confronted with the fallout from global financial crisis and shaky financial system with extremely cost of risks. The major issues now confronting Emefiele’s tenure is the depletion of external reserves and simultaneous pressure on FX rates. Subsequently, the CBN has remained actively engaged on multiple policy fronts designed to curb speculative attacks on domestic FX market while also seeking to preserve reserves. The frequency and inconsistency of such policies have contributed to weakening investors’ confidence and triggered outflows and banks are extremely uncomfortable as the books in 2015 are already in stress. The culmination of the emergent challenges of fiscal and monetary policy environment under which the banks struggled through in 2015 could be summed up in the November Monetary Policy Meeting, MPC, decisions. In its 6th and final meeting for the year on 24th November presided over by Mr Godwin Emefiele the MPC emphasized the need to focus on financial system stability while taking proactive and administrative measures needed to support the environment in which market institutions operate. However it noted that close coordination between the monetary and fiscal policy, was necessary for sustainable growth in the banking industry and the economy in general. At the meeting, the Committee considered the present challenges that per-

•Godwin Emefieli CBN Governor

• Sanusi former CBN Governor

Banking industry environment:

2014 -2016 Challenges vade the macroeconomic space namely the expected rate hike by the USA Federal Reserve Bank, the continuously declining oil prices and the gloomy outlook on global growth. The Committee also considered the present macroeconomic challenges in the country noting that although headline inflation has been on a persistent rise, the observed moderation in October on a monthon-month basis provided some room for monetary easing to support output in the short to medium term while keeping focus on price stability. The MPC also considered the bullish trend in the fixed income space of the bear run in the capital market. Finally, the MPC reviewed and assessed the impact of the current policy to leave the market awash with liquidity in a bid to foster credit expansion by banks to the real sector. However, the committee noted that the expected impact was yet to be met and it was against this backdrop that the MPC made the following policy pronouncements; ·Reduction of Monetary Policy Rate (MPR) from 13.0%

to 11.0% ·Cash Reserve Requirement reduction from 25.0% to 20.0% ·Asymmetric corridor of +2.0% and -7.0% around the MPR Afrinvest Group of financial analysts summarised the impact of the accommodative policy tweaks by the MPC against many analysts’ expectations as follows: Lower rates in the credit and fixed income market. The 200bps cut in MPR and introduction of an asymmetric corridor around the MPR at +200bps and -700bps is the most significant of the policy decisions reached as this brings the Standing Lending Facility, SLF, and Standing Deposit Facility, SDF, rates to 13.0% and 4.0% from 15.0% and 11.0% respectively. Prior to the MPC decision, there has been a regulatory maximum on the remunerable SDF placement by each bank at N7.5bn. The MPC’s decision to complement this by a further 5.0% cut in CRR will add approximately N771.4 billion to liquidity level in banks based on October data from the CBN. However, the communique

issued by the CBN added a caveat that the additional liquidity would be released on a condition that the funds will be channelled to the real sector. Nevertheless, the lower SDF rate and increase in liquidity level would lower competition for deposits amongst banks and we expect to see a decline in savings and interbank rates. The more accommodative stance is also expected to drive yields downwards in the secondary Bonds market as dealers are likely to bid-down on current rates in anticipation of lower yields at the primary market auction. We expect NIBOR rates currently at 10.1% on average to adjust to the new SLF rate to an average of 7.1% (if the same spread is maintained) whilst average yields on T-bills and Bonds market (currently at 4.7% and 10.5%) are likely to also correct to 3.7% and 9.5% respectively. Given the lower financial market rates anticipated, we expect slight reduction in prime lending rate. Increase in credit to private sector. In the short term, we do not expect the ease in

monetary policy to immediately translate to increase lending to the real sector, especially given the high risk retail/SME loans segment. Structural bottlenecks, weak quality of infrastructure and the current slowdown in economic activities constitute high risk to real sector lending, which would require more adjustments by the fiscal authorities to de-risk the sector. However, with the restriction on all cheap income lines, we expect a significant medium term expansion in Credit to the private sector (currently at N19.1tn in October 2015 and up 6.8% Y-oY) by DMBs. This will necessitate banks to improve on their risk management framework to identify opportunities and earn a relatively higher margin (compared to the cheap rates in the fixed income market) and buoy assets turnover and shareholders’ return. Lower Net Interest Margin for Banks. Interest income earned by banks on investment securities and loans are expected to reduce in the first quarter of 2016 as banks adjust to the lower primary auction rates in the bonds market and reduced interbank rates. Cost of Fund will reduce but only marginally due to: 1) 25.0% minimum mandated interest rate on savings deposits and 2) the 80.0% Loan to Deposit ratio regulation by the CBN that will continue to drive demand for deposits. Tier-1 Banks who are net placers of funds in the Interbank Market and with higher deposit liability to fund will be impacted more in terms of net interest margin. Tier-2 banks who are net borrowers will have their cost of fund reduced although the lower interest income will still taper Net Interest Margin. Overall, we expect Net Interest Margin to decline (from 6.4% in Q3:2015) in Q1:2016. There is likelihood of a repricing of stocks in the stock market in the trading sessions ahead as investors are likely to go short on financial services and long on other value-sector equities. Further FX restrictions and increase in black market rates. The CBN’s action to buoy aggregate demand side of the economy by increasing liquidity levels and reducing market rates will have a feedback effect on price and exchange stability in the short to medium term. As the CBN has remained resolute in its resolve to keep administrative measures in place to reduce depletion in the FX reserves and create a contrived stability in interbank FX rates, the effects would be felt in the parallel market for FX where rates would further depreciate. We estimate a conservative FX rate of N255.00/US$1.00 at the parallel segment. This may create a vicious cycle of addi-

•Continues on page 40 C M Y K

30 — Vanguard, MONDAY, DECEMBER 21, 2015

Banking Review FCMB GROUP PLC

CMB Group Plc is one of the oldest private sector indigenous operators in Nigeria's financial system in 1977 as City Securities Ltd (CSL). It then operated as a Stockbroker, Issuing House and Registrar. CSL gave birth to First City Merchant Bank Ltd in 1982. It converted to commerical banking trading as First City Monument Bank Ltd in 2001 and became a public company listed on the Nigerian Stock Exchange in 2004. Following Central Bank of Nigeria’s directives embedded in Regulation 3 of 2010, the bank in 2011 converted to a group structure. Under this new arrangement, FCMB Plc became a private límited company and a subsidiary of the group, and same for CSL Trustees Ltd, FCMB Capital Markets Ltd, and CSL Stockbroker Ltd. FCMB Ltd (The Bank) is the group’s flagship with about 2.7 million customers, 3100 full time staff and 248 branches spread across the country. The bank is also a parent to FCMB (UK) Ltd and Credit Direct Ltd (a micro finance lender). By the close of business in 2014, the Group operated with total assets valued N1.2 trillion haven grown by 16% in the preceding year. The Group had 523,442 shareholders out of which 345 were foreign investors.

Consistent with good performance

sure that obligations are met on continuing basis. However, during the year, proportion of assets classified as cash and near-cash securities declined to about 40% from 48%. Obviously, the level of liquidity appeared sufficient to satisfy demands of the bank’s counter parties, and meet regulatory requirements. The level and extent of decline could not have in the opinion of our analyst, been the major factor in the near stagnation of deposits as they favourably compares with capacities shown by other banks in the market.

expenses (including personnel costs) increased by about N6.2 billion, increase in the top line was overwhelming lead to higher profit after tax of N22.10 billion against N16.0 billion in the previous years. With this satisfactory business outcome even in the face of challenging financial market conditions, the directors were pleased to pay a cash dividend of 25k per share for which shareholders were very delighted. Many others were not able to pay cash dividends during the period.

Earnings and Profitability In 2014FCMB Group leveraged on its diversified business structure to report a gross earning of N148.7 billion against N131 billion in 2013. Interest component was N117.98n billion of 79% of total. Interest expense virtually closed flat at N45 billion leading to increased at interest margin of N72.6 billion. Net charges arising from impairment of assets rose from N7.98 billion to N10.64 billion. Although operating

Asset Quality During the year, FCMB took more risk by winding down certain cash and cash-related positions to expand the level of risk assets. This appear to be a response to higher reserve requirements that locked in some liquidity during the period. Accordingly the bank had go grow lending from N462 billion to N633 billion in order not to unduely suffer reversal in earnings and profitability. At the end of the year, about

Zenith Bank Plc:

Customer Service, Deposits and Liquidity In 2014, the bank won 481,643 new accounts made up mostly of retail customers. Total deposit liabilities amounted to N734 billion. Net deposits grew by just 2.7% from the preceding year’s level reflecting the challenges faced by the bank in building up deposits during the year. In managing these accounts to minimise liquidity risk, the bank relies on maturity and re-pricing gap analysis to en-

•Jim Ovia, Chairman Zenith Bank

enith Bank second generation banks that stormed the Nigerian banking industry with verve and determination to revolutionise the way banking services were operated in the country. From inception the bank alongside a few others established a niche in the mid-upper class market segment and used differentiation and technology to climb the industry ladder within a relatively short period of time. Today, in different measures of bank performance Zenith Bank has become a reference name and a trail blazer.. By most size metrics its either number one or two in the industry and this underscores the leadership role it plays after being in operation for just 24 years.

•Ladi Balogun, MD/CEO.

3.6% of the total loan was classified as non-performing according to criteria prescribed by regulation. This reflected a marginal improvement from 3.9% achieved in 2013. Though marginal, this improvement is remarkable in the sense that the bank expanded credit by a net figure of about N171 billion. Accordingly credit was expanded rapidly even as the rate of impairment went down. The

Group has skilled credit analysts who are fully guided by internal rating framework and lending politics. They employ a 9 grade loss severity model to reflect expected makers in approval and pricing decisions. We believe that in the application of this framework in 2014, FCMB was relatively efficient in loan origination and other processes leading to repayment or recovery of facilities.

Sustains high Assets Quality

Capital Adequacy As at close of 2014, shareholders fund of FCMB Group had accumulated some N160 billion up from N143.7 billion in 2013. The increase resulted largely from accretion to reserves. The Group decided to retain significant part of earnings in the business to pursue future growth opportunities. The bank’s Risk Management committee is mandated to ensure that capital levels remain adequate and consistent with prescribed ratio by regulators. The bank’s computation actual risk weighted asset ratio yielded a Basel II ratio of 19% against 18% in the previous year. This leaves the bank with sufficient margin of safety as it expands business and risk assets size.

•Jonathan D. Long, Chairman FCMB

•Peter Amangbo, MD/CEO. As at end 2014 total assets was N3.43 trillion having expanded by whopping N545 billion just in one financial year. It also operates in five countries including United Kingdom while international expansion is continuing. Zenith Bank is one of the few financial institutions in Nigeria that have taken advantage of the Global Depository Receipt programme to achieve cross-boarder listing in the London Stock Exchange. It listed USD850 million worth of shares. Deposit Liabilities and Liquidity Risk As at 2014, customers held deposit accounts worth N2.27 trillion, adding approximately N280 billion that year. Only two other banks competed with Zenith on this industry

measure of size. This is a mark of depositors’ confidence and loyalty. The bank has also demonstrated its readiness to meet obligations at all times. In 2014 the bank invested N1.55 trillion in cash and near cash assets in readiness to meet any demand. This accounted for about 45% of entire assets, just as qualifying liquid asset to vulnerable deposit ratio was about 41%. Only two banks matched this level and relative measure of sound liquidity positioning the industry. Managing Risk Asset and Asset Quality Issues Following the trend already established Zenith Bank and two others are in the forefront of credit to the economy using several genres of facilities. By end 2014, Zenith Bank had about N1.61 trillion worth of loans outstanding with significant positions in the telecom sector as well as oil and gas. This meant an increase of about N458 billion in just one year. But interestingly only 2% of the loans outstanding were classified as non-performing in line with the CBN prudential guideline. This impairment rate has been consistent with the preceding years. Only seven banks achieved this level of quality assets in 2014. This reflects disciplined approach to credit risk management, meaning that even as risk assets expanded massively with

increasing complexity of management the bank did not compromise quality in pursuit of earnings. Capital Adequacy In the competition for market leadership the level of capitalization has been recognized as very critical and of prime consideration. In 2014 Zenith Bank reported shareholders Fund of N513 billion, up from N473 billion in 2013. Figures available suggests that Zenith is the leader in the industry using absolute levels of capitalization. Analysts believe that the size of the Zenith Bank capitalization was a deliberate market leadership strategy which it had pursed for over a decade now, preparing it for challenges in the economy and the banking industry. Relating the capital base to the risk adjusted asset portfolio reveals a relative Basel1 measure of 21% which came down from about 24% in 2013 following the growth in loan portfolio. This comes slightly lower at 20% under Basel11, ensuring that a sizeable 4% margin of safety existed on the regulatory minimum of 16% required for systemically important banks like Zenith. The bank could afford to remain at current capital and grow risk assets substantially without compromising standards. But as we prepare to publish the 2015 analysis soon we are already seeing a strengthened position.

Vanguard, MONDAY, DECEMBER 21, 2015 — 31

Banking Review

Continues to lead in earnings performance

GTBANK PLC

n recent years the Annual General Meeting of Guaranty Trust Bank Plc have been a celebration of what remains the most profitable banking operation in Nigeria. This brand equity has been exported to make the bank a successful international brand. At present the number of foreign subsidiaries with the bank’s Group is 10 with total investment of about N40billion. GTB plans to continue with this growing trend in its global strategy. Corporate Governance Some few years ago, some researchers at the University of Lagos conducted a study to find out if certain corporate governance variables are significant predictors of bank performance in Nigeria. As part of the accompaniments of the research outcome, it was found that Guaranty Trust Bank came out top as one the best governed banks in Nigeria and this was significant in explaining the corresponding top rate performance achieved by the bank over the years. Remarkably it has continued with this tradition of implementing best practice governance in areas

of board composition and oversight, executive compensation, financial reporting, shareholder relations, corporate social responsibility, internal control, procedures and compliance. The Board is composed of very reputable and distinguished professionals including 2 key independent Directors. Three different Committees of the Board are instituted to make policies and oversight the risk Management function alone in a bid to ensure maximum integrity. A system also exists whereby the control function is decentralized and attached to every business area to minimize incidences of transaction errors and malfeasance. This is complemented by a whistle blowing policy backed with an effective response system. The Board Risk Committee performs important duties of overseeing the operational risks function by ensuring that relevant policies are adequately complied with and that appropriate mitigants are in place. . Capital Adequacy GTB, by all measures qualify as one of the top 3 capi-

SKYE BANK PLC: kye Bank Plc started the S business of banking as Prudent Merchant Bank Ltd

in 1990. By 2000, it changed to Prudent Bank Ltd and became a Commercial Bank following approval by regulatory authorities. However, in 2006, during the Soludo-era banking consolidation, Skye Bank Plc emerged following a merger between Prudent Bank, Eko International Bank, Co-operative Bank, Reliance Bank and Bond Bank. During the 2014, review year, Skye Bank continued its in-organic route to expansion through the acquisition of Mainstreet Bank, one of the Bridge Banks within the portfolio of Asset Management Company of Nigeria (AMCON). The acquisition was aimed at strengthening the bank’s retail presence nationally, wider market reach and enhanced economies of scale. Skye Bank is a publicly listed entity with about 420,000 shareholders. It has three foreign subsidiaries operating in Guinea, Sierra Leone and the Gambia. Perhaps in order to ensure that prompt and delightful services are available for cus-

talized banks in Nigeria. As at 31stDecember 2014, the bank operated with a shareholdersfund of N369billion, the third highest 'in the industry for the year, up from N329billion. Obviously, the bank is ever conscious of the level and coverage of capital base and has used internal and external means to shore it up at a pace that surpasses the average industry growth rate. In fact, some seven years earlier, when equity capital closed at N47.4billion, the bank ranked about 8th in the absolute level of capitalization. As it worked to increase the size of business risk and ascend to the top of performance ladder in the industry, the board and management consistently monitors how adequate capital is to provide cushions for new businesses in ways that meet both regulatory and prudential requirements. A measure of how the bank improved in coverage of capitalization can be gleaned from our analysts measure of relationship between shareholders' fund and estimated Naira size of risk asset portfolio. Our analysts pitched this at 18% in 2007, when the bank ranked about 13th by

•Osaretin Afusat Demuren, Chairman GT Bank

•Segun Agbaje, MD/CEO.

this measure. In 2014, we estimated this at 25% with the bank occupying a position in the top 4 of the industry. Clearly the bank had substantial leverage to continue business expansion even if capital remains at present level. With regulatory capital to risk assets requirement of 15%, we consider that on the minimum, risk asset expansion of about N900billion would not dent the adequacy of existing capital, all things being equal.

GTB is no doubt one of the top 3 banks actively financing the economy through different forms of loans. As at 31s December 2014, total loans outstanding was about N1.2trillion. it was just N121billion in 2007 when the bank occupied the 8th position in the industry. Notwithstanding, this massive exposure growth, strict risk governance standards had consistently kept non performing loan ratios below 5% in the last 10 years. The ratio remained at 5% in 2013 and 2014 even as gross loan grew from N947billion to N1.2trillion. To underscore the desire of the bank to continue to maintain bespoke quality in risk assets and consistently satisfy regulators, the bank invested in two software to drive credit risk management and reporting, namely the Lead to Loan and OFSAA Basel II solutions. These softwares are robust in headline customer profiles, rating assessment, disbursement, recovery and documentation among others.

Loan Impairments and Asset Duality

Confronting costs in expansion

•Tunde Ayeni, Chairman Skye Bank

tomers, Skye Bank takes the issue of Information Technology very key in its operations. In 2012, it adopted an ambitious IT Transformation Project which was completed in 2014 with a cut-over to the unique Flexible 12.0 Banking application.This Application has distinct transaction processing capabilities and is used in virtually every aspect of services delivery by the bank. Not

•Timothy Oguntayo, MD/ CEO.

surprisingly the Bank has consistently ranked high in the various performance metrics in the NIBSS payment. Deposit mobilization and liquidity Skye Bank understands that deposits constitute an important factor in achieving organic growth for banks. This is why it is always in the mood to create new and innovative products and channels to mobilize deposits.

One of such initiatives is the direct sales agent system. Using this model, the bank intends to reach a wider base of prospective customers using the network of third party agents. These agents are able to reach those customers who may not easily be reached at reasonable cost using existing channels. In fact this fitted into the bank’s focus on measured lower cost ones. It also aligned with strategy of deliberate empowerment of the small and medium scale businesses and establishing a niche in that sector. But the bank’s deposit base in the first half of 2015 show a significant decline of about 12 per cent. In the full year audited results 2014 total conventional deposits from customers remained largely unchanged from N819billion of the preceding year; but entire liabilities classified as vulnerable by our analysts showed an upward movement from N844billion to N936billion. Do customers consider Skye Bank safe enough to place their deposits and sim•Continues on page 34

Liquidity Ratios, deposit Mobilization Over the years Guaranty Trust Bank enjoyed the advantage of customers’ flight to safety. This worked with design of innovative liability products which enabled the bank to steadily increase deposit. As at 31st December 2014, traditional customers’ deposits were as high as N1.44trillion. One of the factors that have encouraged customers to deposit their money with the bank would appear to be the conviction that their funds are not at risk and that the bank would be able to meet obligations at all times. Historically, the bank had always maintained a balance between risk asset creation and ability to meet obligations. According to our analyst’s estimate, liabilities adjudged to be vulnerable to unplanned obligation is

•Continues on page 34

32— Vanguard, MONDAY, DECEMBER 21, 2015

Vanguard, MONDAY, DECEMBER 21, 2015—33

34— Vanguard, MONDAY, DECEMBER 21, 2015

Banking Review SKYE BANK PLC: •Continued from page 31

ilar accounts? In 2014, the bank maintained relatively high proportions of cash and cash equivalents in order to meet requirements of customers and other parties. Our measure of cash ratio increased from 4% to 8% which suggested that vault cash was in a buoyant stage. All the other measures tracked by our analysts revealed declining liquidity. Cash ratio (adjusted for vulnerability) declined from 24% to 12%. Liquid assets to total assets came down from 35% to 29% while adjusted liquidity ratio followed the same trend by declining from 36% to 17%. It is recognized that the entire industry faced liquidity challenges during the period and our analysts believe that the bank could have had unique challenging moments as it worked towards meeting required ratios and expectations from customers. Impairment of loans and asset quality During the review period Skye Bank extended credit facilities to customers’ worth about N623billion out of which more than 98% are secured in one form or another. Significant exposures

Confronting costs in expansion

are to Oil and Gas, Commerce and public sectors. As part of its avowed SME strategy the bank made conscious efforts to accommodate the small and medium businesses in its credit process. It also extended the geographical coverage of risk asset origination leveraging on the in-organic expansion through the acquisition of Mainstreet Bank. As risk assets grew, Skye Bank strengthened its Enterprise Bank Management Framework with strict adherence to minimum threshold of official visits to locations and regular reporting governance structure. Notwithstanding, the inclement regulatory pressures and challenges of growth created condition for elevated impairment of credit assets during the period. Accordingly non-performing loans increased significantly from 3% to 6% requiring corresponding spike in required provisions from N12.7billion to N21.6billion. It is, therefore, safe to infer that as business grew and risk assets followed, quality of the portfolio suffered a reverse in a manner that impacted other performance indicators. But the good news is that for Skye this appears to be a momen-

GTBANK PLC

tary cost of growth as it aspire to compete in the top 3 of the market. However as the industry records sharp rise in impairments in 2015 Skye Bank appeared to be heading in better direction in its 2015 nine months financials showing 15 per cent decline when impairment is increasing in most banks. Capital adequacy As a result of Skye Bank’s growth appetite it had since inception been very active in capital raising process. In fact between 1989 and 2010, and between its legacy entities it took about 26 different financial actions that involved series of cash and share offers, including M&A share exchanges and capital reconstruction. A cumulation of all these financial actions reserves from earnings resulted in a shareholders fund of N132billion as at 31st December 2014. Relating this figure to our analyst’s estimate of riskness of the asset portfolio, we arrived at an independent risk weighted ratio of 16%, the same as in the preceding year of 2013. Considered against the prescribed regulatory capital minimum risk weighted asset ratio of 15% for international banks, the capital

base is considerably adequate for the level of business risk the bank assumed in the period. Although rapid expansion is driving the ratio to the limit and additional capital would be required in the near future to sustain the growth momentum. Not surprisingly the Directors decided to do a 100% earning retention in 2014/15 as a way of strengthening the capital base. Also the bank has gone back to the capital market in 2015 to raise N30 billion fresh capital. Earning and profitability With a total balance sheet size of about N1.21trillion, Skye Bank qualifies as a mid-tier operator in the Nigerian banking sector. It had always had an eye of growth and emerging as one of the top three banks in Nigeria using both organic and inorganic growth strategy. This had been supported by a sustained phase of positive earnings and profitable use of assets and opportunities for which shareholders were consistently rewarded. In 2014 the bank passed through what was described as a muted phase in its growth trajectory. Gross earnings increased marginally from N130billion to

N134billion on the back of equally muted growth on interest related income. Some key fee-based businesses declined in absolute terms. Although net margin in all interest related business inched up from 51% to 57%, they were comparatively lower than what some other peers achieved in the face of regulatory pressures resulting from tight monetary policy measures of the Central Bank. Added to these are the unfavourable credit market conditions that led to higher impairment charges of N21.6billion up from N12.7billion in 2013. During the year also, pressure was brought to bear an net earnings following cost of acquisition, IT investments and integration. Operating expenses went up at rate beyond the marginal increase in income and a combination of these factors resulted in a sharp decline in net profit from N18.4billion in 2013 to N8.6billion in 2014. Accordingly key measures of earning efficiency and profitability experienced what our analysts have described as moment reversal. Return on average equity came down to 7% from 16% just as earnings per share was 65k against N1.39 achieved in the preceding year. The bank was constrained to plough back all profit towards strengthening of capital base and funding of integration and expansion. But in the tradition of rewarding shareholders, it opted for a bonus issue to keep the owners happy as it look forward to the future when the fruits of the investments made would be reaped by them. That future is perhaps around the corner in the 2015 financial year end, though results so far appear constrained.

Continues to lead in earnings performance

•Continued from page 31 about N1.49trillion out of which demand liabilities amounted to N808billion. Cash and card equivalents in relation to such vulnerable deposits were 13% down from 20% in 2013. Liquid assets to total assets also declined from 42% to 38% in a period the entire industry witnessed sectoral erosion of liquidity. Adjusted liquidity also reduced from 50% to 37%. Notwithstanding the decline observed in this metrics, it is reassuring that all ratios were significantly above regulatory minimum as the bank continued to demonstrate capacity to meet all obligations not only to depositors but to all other

stakeholders. Earning and Profitability Perhaps one area GTB has shown clear market leadership is in its abilAity to churn out excellent S earnings. In 2014 the bank achieved gross earnings of N247billion, up from N220billion in 2013. In absolute terms, this was the third highest figure in the industry for the year out of which interest income accounted for 73% or N180billion. During the year, the bank made significant improvement in earnings arising from foreign exchange transactions. These include fees and commissions on Letter of Credit

transactions and trading and translation gains on forex positions. The leadership shown by GTB here can be seen if these figures are related to level of resources devoted to the business. Firstly, the adjusted interest income margin of 71%, though a slight reduction from 74% in 2013, is a top of the industry performance which underlines the high quality of earnings from risk assets and dexterity in mobilization of low priced liabilities. Operating expenses rose marginally from N71billion to N79billion. Accordingly profit after tax ultimately rose to N93billion, a figure that was the highest in the

industry during the year and translated to Return on Equity of 27%, another top of the industry performance for the year. Earnings per share also increased from N2.91 to N3.11, a pace-setting result in a year that was generally tough for the sector. Given the obviously top rate performance, the bank rewarded shareholders with a dividend of N51.5billion or N1.75 per share. As we put together the 2015 profile of GTB for repeat of this publication in April 2016 the first nine months result of 2015 is already showing a resilient in the earnings performance.

Vanguard, MONDAY, DECEMBER 21, 2015—35

Banking Review WEMA BANK PLC:

ince 1945 when it commenced operations, Wema Bank has continued to show sufficient resilience having survived through numerous challenging times and circumstances to stand today as the only surviving bank among its indigenous peers. As at 2014, it operated with a regional banking license with branches spread across some 130 locations. As Wema Bank re-engineered itself, it re-engaged the market on the basis of differentiating core values of mutual respect, performance driven, professionalism and innovation. This is because the bank like many others, had come to realise that strong service culture embedded in strong core values can be valuable shield against error of strategy. A major decision of strategic importance taken by the bank in 2014 is the decision to dispose of interest in an associate company – Associated Discount House. This is subsequent to a decision by the later to convert to the business of Merchant Banking. This decision is consistent with provisions of CBN’s regulation. Wema Bank is owned by about 248,900 shareholders, it has about 1,172 staff members and serves customers who up to 2014 concentrated mostly within the geographical areas of South West and South South, the area covered by the regional license held by the bank in 2014. As at 31st December 2014, total asset base was N383 billion which made the bank one of the smallest banks in the industry. Deposit Liabilities and Liquidity Notwithstanding the tight monetary policy that brought enormous pressure to the money market, Wema Bank succeeded in growing deposit appreciably from N218 billion in 2013 to N259 billion leveraging on strong loyalty of customers. Inclusive of other short term liabilities, vulnerable liabilities are estimated by our analysts to be in the region of N276 billion. With liquid assets worth some N152 billion, the bank appeared to have maintained a reasonable level of li-

Introduction nion Bank of Nigeria Plc first berthed in the Nigerian banking waters in 1917 as Barclays Bank DCO with a mandate to service the burgeoning trade between United Kingdom and the colonial territories of West Africa and Nigeria in Particular. From that period up to late 90’s, the bank remained one of the most preferred full service banks in Nigeria and consistently emerged on top three financial institutions in most measures of size and efficiency. However, following intense competition from new generation banks and regulatory head winds in the last 20 years, Union Bank yielded significant grounds in the competitive space and struggled for survival. In September 2012, the bank executed a successful recapitalization plan which saw the injection of about $500m by a core group of investors under

Remarkable Survival Instinct Still At Work

•Adeyinka Asekun, Chairman WEMA Bank quidity sufficient to just meet the requirements of customers and satisfy regulatory prescriptions. Adjusted liquidity ratio came down remarkably from a high of 51% in the preceding year to 30%. The proportion of liquid to total assets also declined to 40% from 43% in the earlier period. The figures suggest that the bank may have faced some challenges in meeting obligations far more then what was minimally prescribed by regulation. The key indication adopted by management of the bank in measuring, monitoring and controlling liquidity risk is the liquid asset to total assets ratio. The measure is actively assessed periodically and within the general framework of the Enterprise wide Risk Management System. This apparently enabled the bank to walk the narrow part of its liquidity during the period without unduly harming operations. Capitalisation In 2013 Wema Bank courageously approached the capital market by way of private placement to raise fund required to shore up the capital base which would among others strengthen the resolve from the bank to restore its national operations. The offer proved very successful with issue pro-

UNION BANK OF NIGERIA PLC: the auspices of United Global Partners Ltd. The core Group acquired 65% interest in the bank and proceed to implement a Transformation Agenda aimed at not just restoring Union Bank as one of the leading brands in the Nigerian banking industry but a reliable creator of value to its stakeholders on a more consistent and sustainable basis. The new management accordingly focused on transformation of human capital assets, service culture, IT infrastructure and risk management framework. A walk into any of the branches spread across 300 locations and other electronic channels reveals that the result

• Segun Oloketuyi, MD/CEO. ceeds of about N40 billion which made shareholders’ funds to close in positive territory of approximately N41 billion. In 2014, this increased to N44 billion which translated to risk weighted asset ratio of 19%. This is considerably adequate and comfortable for the nature of banking license the bank held for that period and the restricted coverage of operations. Asset Quality As the bank restructured its balance sheet and returned to good financial health after some past operational and regulatory challenges, it moved to restore earnings potential and resumed the process of growing lending operations. This further witnessed a boost in 2014 as gross amount of loans closed at N152 billion, up from N142 billion in 2013. With the benefit of recent experience, the bank instituted credible risk management processes such that non performing loan ratio actually remained at approximately 2% between 2013 and 2014. Unlike in the past when it ran into serious regulatory challenges in meeting prescribed figures, the bank met the Basel II requirements which means vastly improved risk management framework. The figure shown for asset quality, all things be-

ing equal, was one of the best reported in the industry during the period,. With strict adherence to prescribed standards which included disciplined internal credit risk rating methods, approval limits for various exposures classified according to geography and product, the bank was able to maintained high quality standard comparable to those of leading risk managers and competitors in the industry. Earnings and Profitability Performance During the 2014 financial year, Wema Bank was able to produce gross earnings of N42 billion up from N37 billion it achieved in 2013. Interest component of this amount was as high as N35 billion or about 84% which shows that Wema Bank relied the most on this traditional source in the entire industry for which it was able to achieve an adjusted margin of 52%. Interestingly this margin is not competitive enough as only 2 other banks reported figures that showed lower margins. On the other hand, the relatively high quality of risk assets required that impairment charges to the profit and loss account is muted at level that closed match that of then preceding year. Coming down to line, operating expenses rose slightly on the back of some significant rise of N1.1 billion on personnel costs and marginal rise on other overheads. Summarising, the impact of these factors is a rise in profit after tax from N1.6 billion in 2013 to N2.40 billion in 2014. In absolute terms, this is the lowest figure reported in the industry in 2014 Annual Bank Review. In relative terms, it also yielded a humble return on average equity of 6%, slightly worse than 7% in the preceding year. Earnings per share also turned out to be the lowest at 6k. No dividend was reported as the bank continued to move towards strengthening its capital base to support future expansion. As we prepare Wema Bank 2015 full year coverage in the next Annual Review of Banks coming up in April 2016 the interim results is showing significant improvements amidst some headwinds. We are expecting to give the 2015 analytics of Skye brand'"s financials in April 2016;

From Big, Strong, Reliable to a simpler and smarter bank

is beginning to show in virtually all critical areas of assessments. Leveraging on fresh capital injection, the bank invested heavily in technology for services delivery and transactions processing. All the branches are now linked using fibre optic connections while an oracle Flexicube UBS 12.2. This has helped to streamline operations and make for smarter services delivery to the delight of customers. Corporate governance issues Following the transition, a new management team led by Emeka Emuwa was hired to implement the strategic plan.

One of the first things the Board and Management put together was the 2013-17 transformation plans which were duly approved by the Central Bank. As part of this plan, and in line with CBN’s regulation 3, the bank initiated the process of divesting its ownership from all non-bank portfolio companies within the group. As at 2015, it succeeded in divesting from Union Capital Brokers Ltd, Union Assurance Ltd, Union Insurance Savings and Loans Plc, Union trustees Ltd and opted for a voluntary wind up of Union Pension Custodian Ltd. Only Union Bank (UK) was retained as a subsidiary. This has no doubt sharpened the

bank’s focus on its core business areas and improved standard of Corporate Governance and risk management. The Board is currently composed of 15 members largely representing key interests in the bank out of which 8 are non Executive Directors. As a way of ensuring independence of Board and Management, the Chief Executive Officer and the Board chairman were made to emerge from different but key interests in the bank. The bank also made conscious effort to hire independent

• Continues on page 44

36— Vanguard, MONDAY, DECEMBER 21, 2015

Banking Review First Bank of Nigeria Holdings Plc:

Set for Pan-African leadership F

irst Bank of Nigeria, FBN Holdings Plc, came into existence in 2010 following the CBN’s regulation 3 on alternative holding company by which the original First Bank is now owned by the holding company. FBN Holdings has the largest number of shareholders in corporate Nigeria, most diversified ownership. The bank over the years has demonstrated leadership as the flagship of Nigeria’s banking industry and history being the oldest existing bank in Nigeria today and still number one in many areas. It boasts of the widest customer network and loyalty with about 9.7 million customer accounts across the regions. A study carried out in 206 by some researchers at the University of Lagos on relationship between corporate governance and performance in the Nigerian Banking industry found that First Bank and one other bank came out joint tops as the best governed banks in the industry and that their historical sound performance could be explained by their good governance structure. Both Nigerian Stock Exchange and CBN have recognized the bank for this record in several years. Capital Adequacy First Bank 2014 result showed it was the highest capitalized bank in Nigeria at N523 billion capital base. On the more critical issue of whether the level of capital was sufficient for its operations we estimate a measure of risk weighted asset ratio of the group at 15% declining from 17% in 2013. Though FBN emerged as the highest capitalized bank in terms of shareholders funds it is obvious from the risk relative measures that the size and risk of the business was covered by capital to the extent of 15% against the prescribed Basle11 requirement of 16% for that class of bank. However the figure here is for the group that includes different companies in different regulatory jurisdictions. Asset Quality With about N2.22 trillion gross loan to the economy FBN appears to be the biggest funds provider for the economy amongst the banks.

•Prince Ajibola Afonja, Chairman, First Bank

In 2014 alone it created loans worth N408 billion. This is one of the reasons the bank is classified as a lead systemically important bank by CBN. More than 55% of this loan size went to the oil and gas sector, manufacturing, consumer credit and the public sector. To the credit of the bank’s credit risk management approach, and given the figures reported, a culture of high quality has long been established by the bank. Notwithstanding the massive lending activities, only about 3% was classified as non-

•Bisi Onasanya, MD/CEO.

performing according to the terms and conditions as well as requirements of relevant regulations. This is amongst the top eight performance in the industry. Deposit Liability and Liquidity If there is any single most important factor why FBN occupies the most unique position in the industry it is the sheer number of customers and deposits they have in the bank. With about 9.7 million customer accounts, the industry highest the bank had a deposit liability of N3.05

DIAMOND BANK PLC:

trillion. The bank has proved to be safe heaven to depositors with the volume of liquid assets available at all times to meet every obligation. We estimate that as much as N1.56 trillion was available in 2014 financial year, being investments in cash and short tenured assets. Estimates of ratio of qualifying liquid assets to deposit liabilities was 30%. We consider these figures to be fit for purpose and adequate to satisfy the regulatory requirements. Earnings Performance To a typical investor in

Nigeria’s stock market First Bank is always a good buy. This is largely due to consistent history of earnings, profitability and dividends performance. In 2014 the bank reported a group gross earnings of N480 billion, up from N396 billion in the preceding year. On this count no competitor in Nigeria matched this performance. Out of this figure interest income accounted 75%, down from 82% in 2013 as the bank moved to insulate performance from regulatory headwinds and interest margin came down to 67% from 71%. In 2014 operating expense increased by more than N50 billion as cost efficiency ratio declined to 19% from 21%. However, this was not sufficient to eclipse the strong earnings performance leading to an elevated profit after tax of N83 billion against N71 billion in 2013. This figure which competed in the industry top three translated to return on average equity of 17%, up from 15% in the preceding year. Interim results in 2015 is looking good perhaps a better ratios would be seen in our nest publication in April 2016.

Comfort in strong capital

ecause of its relevance to the banking sector and the entire economy, Diamond Bank indeed merited the classification as one of the 8 Systematically Important Banks (SIBs) in Nigeria by CBN. As it got to the third year in a journey to “Reclaim the Diamond”, the bank had reasons to celebrate about 25 years of high impact banking in Nigeria. With total asset of N1.75trillion as at 31st December 2014 and occupying the 7th position by this size ranking, it is only logical to see Diamond Bank assume such importance under recognition in the system. Not surprisingly when the International Finance Corporation (IFC) desired partnership with some Nigerian banks to provide funding and technical support to local businesses, it was not hard to identify Diamond Bank as a credible partner. Since 2008, this partnership has worked and small scales Enterprises financing. As part of its orientation to upscale business in this all important sector, the bank in 2011 launched a unique credit product style “Borrow for Free” promo aimed at providing easy access to capital and advisory services for the MSME segment of the market. Earnings and Profitability In 2014 Diamond Bank achieved gross earnings performance of N188billion against N165billion reported in the preceding year. This was the 6th highest ranked performance for the year of which interest related income accounted for 79% down from 81%. Fees and foreign exchange income rose slightly in proportion not-

•Chris Ogbechie, Chairman, Diamond Bank withstanding the extent of increase in loan assts. Charges associated with impairment of risk assets rose by almost N14billion just as operating expenses also increased. The challenges of adverse regulation and deterioration of asset quality, as measured by specifications, resulted in a reduction on profit after tax from N29.7billion to N22.1billion. In relative terms, this implied a decline in Return on Average Equity from 24% to 13% and Earnings Per share from N2.05 to 95k. Capital Adequacy In 2013, shareholders of Diamond Bank approved some USD750,000,000 capital raising programme. During the 2014 review year, the bank succeeded in raising about N50.4billion by way of rights issue. The success of this capital raising exercise in a period of tight capital market conditions says much

•Uzoma Dozie, MD/CEO. about the investment appeal of the bank to actual and potential investors. On the strength of this, the bank also attracted the interest of private equity investors on the past. In fact, the bank had in 2007 entered into a private equity deal with Actis Capital worth N17billion, then regarded as the single biggest of such deals as at that time. These capitalization deals boosted the banks" capital base. The shareholders fund of the bank rose to N206billion from N138billion in the preceding year. This remarkably lifted coverage of estimated size of risky asset portfolio from 17% to 21%. Under Basel II, this coverage is about 18%. In any case, the figures clearly reflect the strength of Diamond Bank’s cushion or margin of comfort to counter parties when compared with 16% minimum required for Systematically Important Banks. By all measures, the bank is one •Continues on page 40

Vanguard, MONDAY, DECEMBER 21, 2015—37

Banking Review ACCESS BANK PLC:

Being systemically important

n 2014, Access Bank moved to strengthen its position in the industry by developing the retail and SME business sectors. This is part of the strategy to achieve the high goal of attaining the status of “Africa"s Most Respected Bank” by 2017. Setting out its key performance indicators, the Directors and management identified 3 over-riding imperatives and focal points for operations. These include growth through strengthened capital position, delivering of strong financial results and sustainable improvement in the quality of growth. With conclusion of its acquisition and merger with Intercontinental Bank Plc, Access Bank re-defined it position in the industry and its capacity to lead big ticket deals. In fact the bank believes strongly that this M&A deal played a significant role in the rating upgrade from A to A+ by a leading rating Agency. With this transaction balance sheet size rose significantly in the last 3 years culminating in a figure of N1.98trillion which placed the bank among the 6 biggest banks in Nigeria. Seven years earlier in 2007, the bank’s total assets plus contingents stood at N329billion and placed outside the top 10 in the industry. Capital Adequacy One of the key mandates of the bank in 2014 was growth through a

UBA PLC:

•GbengaOyebode, Chairman, Access Bank

•Herbert Wigwe, MD/CEO.

strengthened capital position. To start with, the bank set up a special purpose vehicle named Access Finance BV. In the initial exercise, it did a debt capital raise of USD 400million at 9.25% through the issue of Resettable Subordinated Notes. The bank also executed on a rights issue. As at 31st December 2014, about 816,787 shareholders own the equity shares of the bank. This is one of the most diverse holdings among banks in Nigeria. It resulted from

the business combination that was executed recently. These shareholders own shares with book value of N274billion up from N245billion in 2013. This amount is enough to cover 17% of risk adjusted assets and considerably provides a reasonable margin of safety for the bank to proceed with further business growth. It was 18% in 2013. However, tier 1 capital to net loans came down from 33% to 25% underlying how rapidly risk asset creation took place during the period.

Enjoying the fruits of African strategy erating expenses accordingly fell from 42% in 2013 to 40%, but other overheads increased leading to a spike in operating costs from N91billion to N105billion. Accordingly Profit after tax declined by 16% from N46.5billion to N40billion. Return on average equity followed with a decline from 19% to 15% just as earning per share also N1.41 to N1.22. Notwithstanding the adverse turn on profits the bank rewarded shareholders numbering about 276,803 with a cash dividend f 10k per share.Also interim result in 2015 have completely reversed the declines.

•Tony Elumelu, Chairman, UBA In 2014 , United Bank for Africa continued to leverage on continental expansion as a growth and risk governance strategies to report performance figures that are competitive. Its African Strategy appears to be paying off as the revenue contribution of its 18 African subsidiaries increased to N64billion against N56.8billion in the preceding year. Truly UBA is the undisputed leader among Nigerian Banks in terms of presence outside Nigeria. By 2014, these subsidiaries are already contributing about 20% to the revenue base and the bank is strongly pushing to further increase this percentage in the next few years. Gross earnings for the year was N228billion following a figure of N213billion in 2013. It was the

•Phillip Oduoza, MD/CEO. 4th highest figure reported by banks during the year and underlie the fact that UBA is making a success of its efforts to come to the No. 1 position. . Out of the reported earnings, interest income accounted for N160billion or 70% of total earnings. The proportion was virtually unchanged from 69% in 2013. An analytical view of earning structure in the industry shows that UBA has done relatively better that most of its peers in the area of fee and commission related income with about 30% of total earnings. During the year, the bank took some measures to right size staff numbers and quality which resulted in reduction of staff from 10,303 to 9939. Staff cost proportion of op-

Asset Quality and Impairment of Credits In terms of size, UBA in 2014 was the 6th largest fund provider to the economy among the banks in Nigeria. With a gross loan of N895billion, the bank impacted on a wide range of economy sectors. This means that it is exposed to volatilities that was the lot of many sectors during the period, but used diversification and other risk mitigation methods to ensure a relatively clean portfolio. Interestingly, UBA reported what could be described as one of the highest quality loan assets in the industry. Non-performing loan ratio was reported at first 1% in 2014, the same as was reported in 2013. Our analyses shows that only about 2 other banks reported so favourably with the performance by the bank. This is a result of proper identification, assessment and implementation, monitoring, controlling and

Continues on page 44

Credit Risk and Asset Quality In managing difficult risk inherent in every credit situation, Access Bank takes the issue of rating the credit risk of every counter-party seriously. In fact it takes this as central to the entire chain of credit origination to repayment or recovery. Among others, it adopts the Obligor Risk Rating Model (ORR) and Facility Risk Rating Model (FRR). During the year, it expanded loan portfolio more aggressively from N762billion to N1.09trillion and accordingly migrated into the top 5 of banks in Nigeria that finance the economy. Interestingly the rapid growth in loans did not appear to dent the quality standard already set by the bank. Non-performing loan ratio remained low at 2% as was the case in the preceding year. It would therefore appear that the strengthened policies and risk models adopted by the bank during the period were effective. It would also appear that the increase in provisions did not amount to deterioration in quality but a logical consequence of more than N333billion growth in gross loans within just one year. Liquidity Risk and Deposit Mobilization The bank uses a combination of funding or liquidity plan, Gap Analysis and Ratio analysis to quantitatively and qualitatively manage liquidity risk. In 2014, Access Bank succeeded in generating deposit liabilities of N1.03trillion out of which N616billion was in the form of demand deposit. Obviously the bank could boast of having layers of satisfied customers who are ever loyal. In 2014, it joined the institutions that have realized that the future of financial services rests with today’s retail and small customers. Due to aggressive expansion of loans in particular, practically all measures of liquidity declined. Liquid assets as a proportion of total assets fell from 31% to 25%, adjusted liquidity ratio also declined from 26% to 16%. All cash ratios also followed accordingly. Earnings and Profitability Performance During the year 2014, Access Bank took quality risk and it is not surprising that earning and profit provided corresponding returns as compensation. Gross earning responded by witnessing a significant rise from N180billion in 2013 to N218billion out of which interest component amounted to N160billion. Fee and other types of income declined from 29% to 27%. Impairment charges rose significantly in percentage terms but remained small. Operating expenses was largely unchanged at N89billion, the result being an increase in profit after tax from N26.2billion to N39.9billion. Return on average equity increased in good measure from 11% to 15% while earnings per share also grew from N1.15 to N1.75. It is to be noted that virtually all the measures of management efficiency moved up giving rise to the above performances. For instance, cost efficiency measure rose from 17% to 21%, just as earning efficiency also moved in the same direction.

38— Vanguard, MONDAY, DECEMBER 21, 2015

Vanguard, MONDAY, DECEMBER 21, 2015—39

Why most states are on the verge of bankruptcy “Washing a donkey’s head is a waste of water.”Italian Proverb. (VANGUARD BOOK OF QUOTATIONS, VBQ, p 270).

n July 2014, the Federal Government allocated N630.32bn to all the three tiers of government – Federal, States and Local Governments. In August 2014, N601.65bn was allocated to the states. For September 2015 the figures just released indicate that a total of N389.936 was shared by all the tiers of government; representing drops of 35% and 38% from the August and July 2014 allocations. Yet, N601bn in August represented a sharp decline from the previous months in 2014. At the moment governments are sharing less than half of what was available in January 2014. There are more horrors to come. In 2016, states will be extremely lucky to collect half of what they now receive. Most states are on the verge of bankruptcy. The consequences for all of us are difficult to imagine. If you think this is a false

alarm, remember in 2013, we published on this pages that Nigerian states will not be able to pay salaries by 2015. In 2014, we published another warning on drop in aggregate revenue and its consequences. Then we predicted that the Nigerian economy will no longer grow at six per cent or more. Finally we told investors to get out of the NSE. Check our track record for accuracy. Nigerian states are on the verge of bankruptcy. The governors of most states want to re-negotiate the Minimum Wage agreement with Labour. That is only the symptom of the dire financial straits in which the states find themselves. Even the inevitable mass retrenchment of workers will not totally get them out of the woods. Debt and contractual obligations, which will gulp an increasing percentage of their revenue will finish them first. For some,

the calamity will set in by the end of the first quarter of 2016. Unfortunately, most of the states are APC-controlled states. They will damage Buhari’s political position – if care is not taken. Today, we should focus our attention on two issues which will determine that fate of our states. The first is deduction from source, that is, Abuja. Most governors, since 1999

At the moment governments are sharing less than half of what was available in January 2014

have been reckless and fraudulent with public funds since 1999. Even those who have proved to be clever in shielding their crimes from detection were/are as unpatriotic as those too careless to be caught. Below is table derived from the Distribution of Revenue Allocation To State Governments For September 2015. Instead of listing them in alphabetical order, they have been grouped into three based on gross revenue expected to be collected from Abuja. Also

listed are the gross deductions from each state’s revenue allocations. Those deductions are expected to continue indefinitely. Readers must understand that instead of the lies some governors have been telling their people the deductions represent the decisions made by them or their predecessors in the past. When states took on huge debt burdens, sometimes spent on unsustainable programmes, they little realized that a sharp decline in revenue will doom their states economically.

Table of Gross Revenue and Deductions.

STATES AND DEBT BURDEN – THE HORRORS TO COME

40— Vanguard, MONDAY, DECEMBER 21, 2015

Micro-Finance •Continued from page 36 of the top 8 capitalized banks in Nigeria and accordingly has enhanced capacity to extend big ticket transactions. Not surprisingly, it participated in such critical deals as USD200m Dangote Industries Fertilizer Plant/Refinery Project, N2billion Pinnacle Estate, N$40million Omotosho Power Plant project, $663million E & P syndicated reserve-based lending for Eroton, $200million syndicated Risk participation Funding for Smiles LTE Network Expansion, $415million First Independent Power Ltd for Rivers State and $50million OLAM’s export business. Moreover, Diamond Bank is one of the banks actively seeking growth using global strategy. This means that capitalization would continue to remain crucial to the bank even beyond the thresholds of regulatory requirement. The bank has indeed been proactive in managing its capital base. Asset Quality In 2014, Diamond Bank increased loan book more ag-

DIAMOND BANK PLC: gressively by N137billion to close at N747billion as it continued with a journey to rediscover the Diamond. This involved commitments to both the MSME and “big ticket” sectors. This however, came at elevated cost. Non-performing loans ratio rose from 3% to 4% requiring substantial increase in provisions from N24billion to N38billion. The implication is that asset quality declined during the period but not enough to remove the bank from the ranking as one of the operators with cleanest portfolio. According to the view of analysts, non-performing loan ratios not exceeding 5% can be considered high quality. Liability Generation and Liquidity Risk By the end of 2014, Diamond Bank’s customer base crossed the 4.0million mark, a feat that suggests that it is one of the most patronized banks in the industry. To be able to achieve this, it has over the years launched a number of products and

Leading the way in socially responsible banking

channels to the delight of customers. The Diamond Mobile App” and Touch Identity “Recognition” are pioneering tech-related services. All these may have brought phenomenal success to the banks liability generation efforts. As at 31st December 2014, total deposit liabilities amounted to N1.35trillion after the different deposit mobilization initiatives yielded

a net addition of about N251billion. The loyalty and confidence of the banks customers appear to be rooted on the banks capacity to meet obligations as they fall due. As much as N828billion was invested in assets considered wihin the category of cash and short term assets, up from N566billion in 2013. Accordingly liquid to total asset ratio increased from 42% to

47% just as adjusted liquidity ratio rose from 37% to 42%. These levels suggested that Diamond Bank was among the top 3 banks that operated with the least liquidity risk at the end of 2014. But with the increasing microeconomic headwinds we hope the 2015 banking reports we are already working for April 2016 would show a sustained good performance

Banking industry environment:

2014 -2016 Challenges •Continued from page 29

tional tightening of exchange rates rules by the CBN If accrual to external reserves does not strengthen. The strong pass-through of lower exchange rate on consumer prices in Nigeria suggests high inflationary pressure is inevitable in the short to medium term. The relaxed monetary stance of the MPC after its last meeting for the year, though positive for stimulating short-term economic growth, may not come without negative implications for the economy in the medium term. With the reduction in interest rate,

Nigeria is likely to face increased capital flight consequences in the medium to long term, more so with the Fed raising its benchmark interest rate at its last meeting in last week. Equally, the spike in financial market liquidity resulting from the reduction in CRR to 20.0% as well as the expansionary 2016 fiscal year are expected to further trigger inflationary pressure. While the decisions by the MPC ensued from a need to grow the real sector through increased lending by banks, decision of lending will continue to be governed by risk considerations with Banks more conservative in taking risk given the macroeconomic headwinds.

Vanguard, MONDAY, DECEMBER 21, 2015—41

Insurance

ROUNDTABLE - Front Row: L to R, Mahmud Yayale Ahmed, Prof. Akpan Ekpo, Wazirin Adamu Fika, Chief Philip Asiodu, John C. Nwabueze (Director General), Dr. Shamsuddeen Usman, Prof. Osita Ogbu, Prof. Michae l Kwaneshie at the Philip Asiodu Economic Initiative Inaugural Roundtable held in Transcorp Hotel, Abuja.

‘Rising cost of goods could lead to inflated claims costs’ Stories by ROSEMARY ONUOHA

midst the rising cost of goods in the economy, the higher cost of importing spare parts places insurers at risk from inflated claims costs, particularly within their motor accounts, according to a report by A.M Best. A.M Best also noted that insurers that maintain foreign-currency denominated obligations and utilise a weak asset liability matching framework, the decline in the naira relative to the U.S. dollar will increase liquidity constraints, owing to the need to increase domestic-denominated assets to meet their foreigncurrency denominated liabilities. The rating agency said that it would in turn have negative implications for the capitalisation levels of these insurers and hence their financial strength. The report said, “Without introducing innovative products and appropriate distribution methods to attract the various segments of Nigeria’s demographics, insurance will continue to be viewed as a luxury product only available and necessary to the well off. “In spite of the headwinds overshadowing the economic landscape, the low penetration rates, good growth prospects, a relatively stable political climate and an improving regulatory landscape, means that Nigeria is fast becoming a country of interest for foreign investors seeking to capitalise on untapped

insurance demand. “In the past two years, the industry has witnessed the entrance of a number of foreign players into the market. Meanwhile, the number of insurers in the industry has shrunk over the past 20 years, much of which was a result of NAICOM’s increase in minimum capital requirements in 2007 that saw participant numbers reduce to 49 from 97 in 2005. “A.M. Best believes that consolidation is likely to continue, abetted by the entrance of foreign investors seeking global expansion to diversify their business. For domestic insurers, this

enables them to utilise international practices and technical expertise, further aligning the Nigerian market with that of the global operating environment. However, international investors targeting Nigeria will need to remain mindful of the inherent challenges overshadowing the insurance market, including the uncertain economic environment. While the existing retail portfolios of domestic players may be considered attractive as these lines of business are relatively untapped, significant investment is required to establish strong distribution

channels to enable insurers to build sufficient scale. This will require investors to have a long-term view of their positions in the market. Furthermore, the low, albeit improving, level of transparency in the market is likely to be a hurdle in undertaking sufficient due diligence on potential acquisition targets. “The young and growing population of Nigeria continues to present a huge potential for the growth of the underpenetrated insurance industry, with annual nominal growth rates of up to 10% expected for the coming five years. However, the economy remains subject to fiscal and structural weaknesses, including the countr y ’s dependence on oil revenues, the high levels of corruption and subsequent distrust in the financial system. These factors restrict the development of the insurance sector, particularly given the high poverty levels and persistent inequality between the various demographics that continue to be ignored. “Growth of Nigeria’s insurance industry and increased competition from international participants will continue to be important to the health and development of the insurance sector, although companies need to stay focused on the economic and regulatory environment. A sudden deterioration in the stability of the political environment, economic growth or weakening regulatory supervision could represent risks for investors,” the rating agency stated.

Devalued Naira will reduce disposable income of common man —Shoderu

mmediate past President of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mr. Ayodapo Shoderu, has said that at the level of the common man, the devalued naira will reduce the disposable income of Nigerians, further precluding them to care less about undertaking insurance. Shoderu said that the present challenge should make national policymakers to be more ingenious in managing the precarious economic state, while the onus is also on insurance practitioners to be more prudent and more resourceful in running their businesses. While advising the political class, Shoderu said that the time has come for Nigeria to break fast the façade of mono economy and develop other latent mineral resources that the nation presently has in

abundance. He said, “We must also continually put in place strategies to promote the nation’s industrial sector so as to transform our nation from consumption-based to production-based nation. He said, “All over the world, elections or politics are a great determinant of national economic and political advancement. Whatever happens at the realm of polity affects all other facets of national economy, of which the insurance industry is a critical component. This is why we must do all within our means as practitioners to ensure we have a robust polity.” On fires which gutted several markets almost all over the country in recent past, Shoderu noted that the consequence of these unfortunate developments to many of the victims; most

especially those without insurance cover, remains horrific. Shoderu stated that these ugly fires coupled with lack of penchant for its mitigation through insurance has continued to deplete the nations’ meagerly managed wealth as most of the victims constitute a significant chunk of entrepreneurial class, who are supposedly great contributors to the nation’s Gross Domestic Product (GDP). “We call on government to embark on aggressive asset protection through public enlightenment about risk prevention and control in major markets in Nigeria. Permit me to reiterate the call for compulsory insurance of all Nigerian markets and public edifices as enshrined in the legal provision under Insurance Act 2003 (section 64 and 65) of insurance of public buildings,” he stated.

Storm losses to cost Sydney over $5m Sydney, the largest Australian city, was lashed by a tornado-like storm last week, with hailstones as big as golf balls and wind speeds of over 200km per hour. It has caused insurance losses of at least $5.76 million. Insurers had received about 1,000 claims, said the Insurance Council of Australia (ICA) which represents general insurers. The number of claims and amount of losses are expected to rise slowly over coming days as property owners lodge claims and the cleanup and recovery operation continue. The ICA has declared the event a catastrophe that has resulted in damage to homes, businesses, cars and infrastructure. The Bureau of Meteorology said the winds recorded during the storm, which later moved out to sea, could have been the highest on record for the New South Wales state. The winds were associated with a possible tornado, in what is called a supercell thunderstorm which is one of the most dangerous thunderstorms.

Christchurch City Council agrees to $635 million insurance payout

hristchurch City Council has agreed a $635 million settlement for its earthquake-damaged facilities. In what is the biggest settlement in New Zealand insurance history, the council announced the full and final conditional settlement with its insurers, LAPP (the Local Authority Protection Programme Disaster Fund) and Civic Assurance’s principal reinsurers. The payout is the result of five years of complex and challenging negotiations. The global settlement covers all of the council’s 1600 individual above-ground asset claims and business interruption losses which occurred in the devastating 2010 and 2011 quakes. Christchurch Mayor Lianne Dalziel said the insurance settlement comes as “an enormous relief ”. Knowing our full and final insurance settlement gives us certainty as we begin work on our 2016/ 17 Annual Plan,” she said.

42— Vanguard, MONDAY, DECEMBER 21, 2015

Banking Review STANBIC IBTC Holdings:

Running on diversified earnings gross loans of N413 billion to its customers, significantly up from N303 billion in 2013. The largest chunk went to manufacturing, trailed by oil and gas, consumer credit, transport and communications. However term loans was almost 86% of the total. Having adopted best practices in risk governance standards, policies and procedures for each major risk type the bank was able to achieve a considerably high quality portfolio. Nonperforming loans ratio was 4% in 2014 as was in 2013.

n Nigeria Stanbic IBTC could be said to have originated from the Investment Banking and Trust Company Ltd (IBTC) which came into existence in 1989 as one of the early indigenous private sector merchant banks in the country. After series of transitions, mergers and acquisitions, Stanbic IBTC has emerged as one of the growing lists of formidable Nigerian South African corporate alliances. As part of the moves to comply with CBNN regulations on holding company model in the industry Stanbic IBTC Holdings Plc was incorporated as the parent company of the bank with other group members in diverse sub-sectors of the financial services. Operations of the group is organized long three major lines, namely, corporate and investment banking group, personal and business banking group and wealth management group. During the 2014 financial year some of the subsidiaries attained important industry milestones and leadership. The

•Atedo Peterside, Chairman, Stanbic IBTC Pension subsidiary crossed the N1trillion mark and became the undisputed leader in that subsector. The stockbroking subsidiary lead the market in both volume and value of transactions in the Nigerian Stock Exchange for the 7th consecutive year. Assets under custody by Stanbic IBTC Nominees hit the N2.3 trillion mark. Also a subsector lead.

UNITY BANK PLC

•Thomas Etuh, Chairman, Unity Bank uring the 9th Annual General Meeting of Unity Bank Plc to review activities for the financial year ended December 2014, an opportunity was provided for the bank to commend all critical stakeholders for returning the bank to the path of profitability and also sustaining the bank on a journey that started nine years ago with the coming together of nine banks during the Soludo-era consolidation exercise. Among the legacy banks that came together to form Unity Bank are Bank of North, Intercity Bank, Centerpoint Bank, First Interstate Bank among others. That the bank was able to face the integration challenges involved in that unique merger is a credit to those that have successfully steered the bank to today. As at December 31, 2014, Unity Bank operated through a brick and mortar network of about 250 branches and cash centres with a total balance sheet size of N413 billion. The bank’s market reach is also complemented by alternative channels which include

•Sola David Borha, MD/ CEO.

Capital Adequacy Stanbic IBTC as a group reported shareholders’ funds of N114 billion in 2014, up from N98 billion. Every indication shows this to be adequate to provide cushion to the respective businesses under the group portfolio. With our analysts estimate of risk size of N555 billion, we estimate a risk coverage ratio of 20 %. Though down from 24%

estimate for 2013, this is considerably high enough to support the risk inherent in the group’s business and satisfies the Basle 11 requirement of 10% minimum regulatory capital for banks in that category. The bank’s estimated risk weighted asset ratio of about 15% under the new framework. Asset Quality In 2014, the group extended

Liquidity Risk In 2014, the group reported deposit and current accounts of customers at N507.7 billion up from N419 billion. Liquidity ratio was at minimum of 50.8% and maximum of 84.7% resulting in average of 72.6%. In our analysis liquid to total assets ratio was about 44% while adjusted liquidity ratio was 46%. Notwithstanding the divergence in estimates these liquidity levels are considered very much adequate to satisfy stakeholders and meet regulatory requirements.

A new life after the storm

•Yomi Somefun, MD/CEO. about 270 Automated Teller Machines and 1070 PoS terminals. These channels are manned by about 2,331 members of staff. During the review year, the bank embarked on a restructuring exercise which comprehensively covered virtually all aspects of the bank’s operations including people, processes and products. It moved to re-brand itself and emerge with a more enthralling image among its major stakeholders. It would appear that in all critical areas of measurement results have improved significantly. Earnings and Profitability Measures In 2013, Unity Bank reported a loss after succumbing to adverse money market condition and adverse risk management. In 2014 however, the picture changed drastically. To start with, it reported a gross earnings of N77 billion, up from N62 billion in 2013. Interest income on loans and other investment products accounted for N63 billion or 81% of this total.

Interestingly this showed Unity Bank as one of the top 3 in terms of reliance on interest related sources among the banks within our 2014 Review. To the bank’s credit however, it succeeded in efforts to mobilise low cost funds as interest margin increased from 58% to 73%. Another area the bank proved more effective relative to the preceding year was the level of impairment charge required to met prudential standard. Only N15.3 billion as against N21.7 billion previous year was expended during the year. The restructuring measures undertaken also helped to bring down operating expenses from N52 billion to N31 billion in a manner that reflected substantial efficiency gain. Ultimately, these positive outcome in earnings and cost efficiency resulted in a remarkably improved profit after tax of N10.6 billion in 2014 against a loss of N23 billion in the preceding year. Accordingly return on average equity improved to positive 20% from a negative of 57%. Earnings per share also turned to positive of 9k per share. Capital Adequacy Measure During the review period, Unity Bank happened to be one of the few that successfully approached the capital market to raise capital. In fact, it did a rights issue which fetched additional funds and helped to strengthen the capital base. In 2014 shareholders fund stood at N76 billion as against N28 billion a year earlier. This exercise made significant impact on the adequacy of capital available for the bank to do its business. Using Basel 1 measure, Risk weighted asset ratio was estimated at 24%, up from 10% previously. However, the Basel II measure which adjusts for

good will and intangibles including deferred tax yielded a regulatory ratio of just 2%. This suggests that bank is substantially short on the amount of capital required to prudently prosecute its business. A combination of further balance sheet restructuring and additional capital may need to be embarked upon to satisfy Basel II requirements. Asset Quality In 2014 financial year, Unity Bank moved to increase earnings by expanding loan portfolio in the face of pressure on margins imposed by tight money market conditions. Net additions to loan portfolio was N40 billion which took the total figure to N266 billion at end of the year. Although non-performing loan ratio declined substantially from 26% to 18% the quality implied by the ratios is very poor. It turned out to be worse figure reported in the industry in 2014 just as was the case in 2013. Notwithstanding the remarkable improvement made to clean the risk assets portfolio more and sustained efforts need to be made to achieve desired level of quality. Deposit Mobilization and Liquidity Risk In 2014 the tight money market affected Unity Bank’s ability to generate deposits required to create further liquidity in the system. A number of its liabilities generating products appeared weak. Accordingly customer deposit liabilities (including amounts due to other banks) declined from N303 billion to N277 billion. Other accountsalso moved in the negative direction to N14 billion. Analysts believe that some type of relationship exists between bank’s ability to collect

Vanguard, MONDAY, DECEMBER 21, 2015—43

Banking Review ECOBANK GROUP:

cobank Transnational Incorporated emerged in the West African banking landscape to fill a gap that long existed but not explored. Accordingly in 1985, a group of businessmen came together with the political support of the Economic Commission of West Africa States, ECOWAS, and various governments in West Africa to form Ecobank with the aim of playing a financial and economic role towards promoting international trade amongst the countries of the region and with other countries outside the region. As at 2014 the bank operated in 36 countries in Africa with offices in Europe, South East Asia and Middle East. It boasts of over 10 million customers, about the largest in the region, through the network of about 1,265 branches and offices as well as 2,690 ATMs and over 14,233 points of sale, PoS. The Nigerian operation accounts for 45% of the total in all measures of size. The group’s business is organized in three key divisions namely: Corporate and Investment Bank, Domestic Bank and Treasury. With some 641,403 shareholders of 22.56 billion shares of USD0.025 per share the group is listed in the Nigerian Stock Exchange amongst other exchanges. About 10 shareholders including the International Finance Corporation, IFC, held 73.4% of the shares. The peculiar nature of its international, cross-border operations, all figures are reported in US Dollars. Ear nings and Profitability In the year 2014, the group reported gross earnings of ESD2.9 billion against USD2.6 billion in 2013. Out of this, interest income accounted for USD1.7 billion or 69% of total. This reflected increased reliance on interest income as it was 62% in 2013. Absolute interest margin was just a little change at 66% and 64% in 2013 and 2014 respectively. Though operating expenses rose from USD1.43 billion to USD1.53 billion, profit after tax rose significantly from USDO.15 billion to

Leveraging the international network

USD0.39 billion leading to increase in return on average equity from 7% to 16%. Earnings per share doubled to USD0.02 from USD0.01. The bank did not declare any dividend against 2014 result. Capital Adequacy Shareholders’ Funds as at 2014 year end was about USD2.7 billion up from USD2.1 billion in 2013This is significantly higher than the competitors in Nigeria and this underlies the fact that in order to operate across the international markets high capital base is required. In relating capital to estimated risk size in the asset portfolio, we arrived at estimated risk asset coverage of 18% against 14% in 2013. We consider this level of coverage to be close to 16% Basle 2 minimum requirement and suggest that the bank may need to slow down on risk asset expansion or seek to increase capital. The later option appear

more plausible given the bank’s easier access to the financial markets. Asset Quality and Risk Assets Creation In 2014 Ecobank Group had global risk asset exposure of USD13 billion, slightly up from USD126 billion in the preceding year. The group obviously slowed down on the expansion rate and appeared to have become more selective in creating risk assets so as not to compromise quality. On closer look at the nonperforming loans ratio, we observed that this measure was flat and remained unchanged at 4% achieved in 2013. This reflects high quality. Credit Risk Standards consider nonperforming loan ratio of 5% and below to be good quality all things being equal. As a big bank with huge portfolio of risk assets spread across 36 countries, 4% level of sticky facilities is considered high quality. Liability Generation and Liquidity Risk By the end of 2014,

FIDELITY BANK PLC:

•John Aboh, Chairman, Ecobank

•Jbril Aku, MD/CEO.

Ecobank had in its balance sheet some USD19.4 billion of liabilities considered vulnerable to sudden demand, and current account holdings accounted for USD9.6 billion out of this total. In order to stand ready to satisfy customers and meet regulatory requirements of minimum liquidity, the bank held USD7.5 billion in assets considered to be liquid. This translated to liquid assets to total assets ratio of 31% just as adjusted liquidity ratio was 28%.

Those ratios were better than the preceding year’s at 28% and 26% respectively. These figures are very close to minimum regulatory requirements of 30% for specified liquidity ratio and suggest that within the context of Nigerian jurisdiction the bank was very close to border line. We are however aware that the prescription differs among the different countries in which the group operates.

Growing conservatively, Consistently

idelity Bank Plc was incorporated in 1987 and commenced business as a merchant banking outfit. It however converted to commercial banking in 1999 following the clamour of wholesale institutions for a level playing ground in the industry. The bank proceeded to list as a public entity in the Nigerian Stock Exchange in 2005. Since then, Fidelity Bank has been on a firm and steady growth trajectory to emerge as one of the admirable institutions in the sector by key stakeholders. The bank is guided by an ambitious vision to be “number 1 in every market we serve and every branded product we offer ”. The bank intends to achieve this broad goal by disciplined adherence to certain guiding principles or core values represented by the pneumonic ‘CREST’ namely Customer ’s first, Respect, Excellence, Shared Ambition and Tenacity. The bank has in several practical ways demonstrated its commitment to the principle of “Customer First”. In 2014, it adopted a service programme centred on building a superior customer service franchise. Remarkably, the bank committed itself to quantitative targets of services delivery

•Christopher Ezeh, Chairman, Fidelity Bank in the areas of service turnaround time, response time to enquiries and complaints among others. To achieve those targets, sales structure was flattened and certain operations were centralized. With the aid of a bespoke online banking platform and a dedicated Customer Complaint and Protection Department, the bank has been able to achieve a lot. For instance turnaround time for on-line customer set-up in the branches was in 2014 reduced from 24 hours to 3 hours. Customer Service, Deposit and Liquidity Fidelity Bank prides itself about having a robust retail strategy. In 2014, it reportedly added over 471000 new

•Nnamdi Okonkwo, MD/ CEO. customers in this segment. The beauty of this strategy is that goals are achieved at relatively low average cost of fund leading to greater efficiency. The bank also continued to expand the channel through which these customers are serviced. It grew the number of Automated teller Machines to 685 and Point of Sale facilities to 9,156. Some 850 Customer Service Agents were introduced to the channel structure just as some education related products were launched. As at 31st December, 2014, the bank was able to accumulate total customer deposit of about Capital Adequacy Measures Fidelity Bank has long recognized that good treatment

of shareholders by way of attractive dividends and good relations is required for an organization that intends to sustain good share capital base for operations. Accordingly, it long decided to set up a dedicated investor relations desk hat is actively managed. Over the last 20 years, it used combinations of cash dividend and scrip issues to keep shareholders happy and ready to support capital issues. As at 31st December, 2014, shareholders commitment in terms of shareholding amounted to N173billion. This amount was owned by some 408,766 shareholders. Against an analyst’s estimate of risky portfolio size of N305billion the capital to risk relations measure of 25% clearly underlines the conservative posture of the bank as regards the extent of cushion provided by capital base. Notwithstanding that the figure is lower than 8% estimated for 2013, we believe that Fidelity Bank has a very comfortable capital base which can prudentially support multiples of existing volume of business at present regulatory regime. To the credit of bank’s management, it had over the years tried to grow capital from internal and external sources. In 2014, internal rate of growth in capital was estimated at 8%, up from 5% in 2013.

44— Vanguard, MONDAY, DECEMBER 21, 2015

Banking Review UNION BANK OF NIGERIA • Continued from page 35

From Big, Strong, Reliable to a simpler and smarter bank

experts to manage critical aspects of the transformation. Human capital changes, Apart from emphasis on culture change and technological awareness, greater motivation was introduced even as staff number declined from about 3778 in 2013 to 2976 in 2014. Average cost of retaining a staff reduced from N10.9m to N9.66m (inclusive of pension contributions and others), but staff productivity in terms of what an average staff returned to shareholders increased from N1.36m to N6.88m. Accordingly every indicator points to management and staff that are increasingly becoming more efficient not only in the area of services delivery but also from the perspective of what is returned to the owners of the business. Capital Adequacy Up till 2011, one area the bank’s weakness showed clearly was inadequate capital to carry on the normal business of banking. Indeed capital was completely eroded and the bank become technically insolvent which required regulatory intervention. It was therefore not a surprise that the restructuring of 2012 came with substantial injection of capital. With a negative shareholders fund of about N142b in 2010, equity capital closed at a positive N188billion in 2013. This further increased to N206billion in 2014 following a 100% plough back of profit. Our measure of Risk weighted asset ratio stood at a relatively healthy Basel I figure of 31% in 2014 declining marginally from 32% in the preceding year. This is about 16% under standardized approach of Base II. For a bank with international banking license, 15% is generally considered adequate. Tier I capital to net loans was as high as 65% while Tier I capital to vulnerable deposit liabilities stood at 34%. Perhaps the only critical challenge facing the bank in its current composition of equity capital is the existence of a negative general reserve of N194billion which is outstanding from past business losses. The good news is that the current fast pace of growth in profit if sustained will extinguish the loss in a few years. The bank has some scope to increase risk assets by about N50billion at existing capital without unnecessarily exposing itself to regulatory head winds. Impairment of loans and Risk Asset Quality Effective risk management is at the core of operations of the new Union Bank and sound management of Credit is understandably a key component of the transformation. The Credit Risk Rating framework is in place to ensure quality of loans booked and consistently guaranteed. Analysts considered a judicious adherence to this new model and framework necessary to ensure that AMCON will not have cause to buy over bad loans from the bank in future. Early signs indicate that Union Bank is in the right trajectory. Though gross lending amount increased from N23billion in 2013 to N325billion in 2014, or whopping 41%, non-performing loan ratio declined from 6% to 5%, an indication that quality of risk management is on the rise and the bank is truly on a new era. This meant that relative levels of provision for sticky assets have declined. Our independent estimate shows that the proportion of total asset portfolio adjudged to be subject to impairment stood at 56% in 2014. Given industry figures and the new found measure of efficiency in management of credits, this clearly supports the view that Union

•Emeka Emuwa, MD/CEO, Union Bank Bank is a good position to expand risk assets without compromising quality. Earning and Profitability In 2014, reported gross earnings rose marginally from 2013 figure of N103billion to 109billion, however when a nominal provision of about N8.0billion no longer required is removed, gross earning actually declined to N101billion. Although the Bank ramped up lending and increased interest on loans from N30billion to N38billion, interest on investment securities and placements declined significantly from N49billion to N36billion resulting in reduction of contribution of interest income from 77% to 74%. The bank faced challenges in pricing of assets. Fee based income and foreign exchange earnings made encouraging impact as their contribution rose from 9% in 2013 to 15% in 2014. Three factors made the difference in the bottom-line during the period. Firstly the decision to take the divestment option towards complying with CBN’s regulation 3 resulted in extra-ordinary income of more than N6billion following disposal of 5 subsidiary companies including its very profitable registrars business. Secondly the new credit risk management and review framework yielded substantial recoveries and reduced provisions for bad loans. Accordingly impairment charge for credit losses came down from N13billion in 2013 to just N3billion in 2014. Thirdly, although other operating overheads increased as a result of transformation related expenses, personnel cost was brought down remarkably from N39billion to 29billion following the right sizing measures undertaken by the bank. Ultimately profit after tax increased from N5billion in 2013 to about N20billion in 2014. Accordingly return on average equity increased from a paltry 3% to 10%. Although this remained below historical average for the industry the growth is impressive considering that in 2011, a year prior to the transition, the bank incurred a whopping loss of N76.7billion. The 2014 figure also translated to Earnings per share of N1.21k up from 30k in the preceding year. Notwithstanding the impressive bottomline, the bank did not declare dividend to shareholders as a result of constraints imposed by negative revenue reserves that subsists in the balance sheet and the need to build up capital base. Liquidity Risk profile To underline the importance Union Bank attaches to its sustained capacity to

meet obligations to counter-parties, it set up a market and liquidity Risk Management Department charged with the responsibility to provide guidance on issues of match or mismatch of fund inflow and outflows, and liquidity risk arising from market positions. The Department monitors closely movements in key Risk indicators including maturity mismatches, liquidity ratios, prudential portfolio limits on asset mix and concentration risks. Contingency plans were put in place to address any unexpected liquidity crises that may arise. One key risk indicator banks generally consider is the structure of deposit liabilities. Our analysis, however, shows what may be considered vulnerable liabilities of about N609 billion, which remained virtually unchanged from N605billion in 2013. This is a measure of the banks liabilities that may suddenly fall due and put pressure on the bank to discharge. Out of this, demand deposit liabilities stood at N209billion in 2014. Liquid assets in form of cash and cash equivalents including unrestricted balances with Central Bank and marketable securities stood below N252billion and suggested that the market and liquidity risk department needed to be on top of their game to ensure that not only regulatory requirements are met but also that implicit and explicit cost of meeting obligations to counter parties is low. Our analyst’s estimate of qualifying liquid assets to total assets declined marginally from 29% in 2013 to 27% in 2014. Other key indicators reveal a decline in adjusted liquidity ratio from 30% to 23%.

CBN’s measure of liquidity ratio as at then required banks to maintain a minimum of 30%. Union Bank’s cash and adjusted cash ratios closed at 8% and 10% respectively. Our independent view is that the liquidity levels could have been enough to meet regulatory requirement but a stress test against possible regulatory changes would reveal that the bank operated at limits of prudential requirements supported ostensibly by an active liquidity risk strategy. Investment Quality and Investor Relations In the past, Union Bank appeared to lag behind its peers in devising active strategy to deal with shareholders and also return benefits to them. Perhaps the ownership structure that existed in that era was largely complacent and managers who controlled the bank invested relatively less effort in building a strong investor relations organization. The new Union Bank is keenly interested in building a reputation that covers the entire stakeholder strata particularly shareholders, depositors, society, staff and government. The key question to an investor is: What is the investment value of Union Bank? Following the transition and capital restructuring that was embarked upon, Union Bank has shown promises of returning as preferred investment destination to discerning investors. Net book value per share which closed negative to N12.16 in 2014, up from N11.09 assets rose to N920billion from N802billion. However the attraction in the investment quality of Union Bank is not so much on the figure of current earnings and net assets but on the potentials for sustained earning in the future. Our upcoming report on the bank’s 2015 full year results will tell much about how bright the future would set.

UBA PLC Continues on page 37 reporting embedded in the bank’s risk management process. Deposit Liabilities and Liquidity As one of the biggest banks in the system the bank had total assets of N2.34trillion, making it the 3rd largest by this measure, it is typical that UBA would enjoy the benefit of patronage from many account customers. The bank in 2014 could boast of some 8million customers across it’s channels with substantial loyalty identified in the relationships. Part of what had sustained this loyalty would appear to be the confidence that the bank is ever ready to meet obligations as they fall due. To this effect, the bank had always tried to maintain in high capacity in terms of liquidity which can be seen from the substantial investment made in cash and short term assets of about N999billion in 2014, up from N895billion in 2013. This accounted for some 43% of total assets, with adjusted liquidity ratio of about 37%. Only about 5 banks appeared as liquidity conscious during the year. It actually had the highest cash ratios in the industry and these proved comfortably above thresholds considered adequate to meet regulatory requirements and obligations to counter-parties. Capital Adequacy By most measures, UBA situates on

Enjoying the fruits of African strategy the top 5 of the most capitalized banks in Nigeria. Because of its growth inclination and the imperative for functional and spatial expansion, the bank had no choice than to grow its capital. This has over the years been affected from internal and external sources. As at 31st December, 2014, the bank had accumulated shareholders fund of N282billion with almost N266billion in the form of reserves. This among is considered by our analysts to provide adequate comfort to all of the bank’s clientele and regulators that risk inherent in the level of business undertaken by the bank is within acceptable standards. Our estimate of this coverage is a ratio of 18%, slightly up from 17% in 2013. Considering the regulatory minimum of 15% for its class of banks, we consider that the bank still has substantial latitude to pursue its growth options at current level of capital. Indeed it can choose to double the existing level of risk assets and still be within the minimum requirements. However, for the business of banking, We believe that it is always better, from the perspective of risk management to have more capitl. In the post 2014 period, the bank indeed raised further capital by way of rights offer. We shall be examining these 2015 developments in the bank in details by April 2016.

Vanguard, MONDAY, DECEMBER 21, 2015—45

Banking Review

How the banks ranked on the performance grid 2014

2013

Gross Loans (N’ billions) Ecobank International First Bank Zenith GTBank Access UBA Diamond FCMB Skye Fidelity Stanbic IBTC Sterling Union Bank Unity Wema FSDH

2,460 2,222 1,606 1,208 1,093 895 747 633 623 533 413 381 326 266 152 40

2,280 1,814 1,148 947 762 805 610 462 574 390 303 329 231 226 103 19

Total Assets (N’ billions) Ecobank International First Bank Zenith UBA GTbank Access Diamond Skye FCMB Fidelity Stanbic IBTC Union Bank Sterling Bank Unity Bank Wema FSDH

4,800 4,342 3,424 2,339 2,127 1,979 1,750 1,210 1,200 1,187 944 921 825 413 383 110

4,500 3,859 2,879 2,219 1,904 1,701 1,355 1,115 1,034 1,081 763 882 708 404 331 79

Shareholders’ Funds (N’ billions) First Bank 523 Zenith 513 GTBank 369 UBA 282 Access 274 Diamond 206 Union Bank 206 Fidelity 173 FCMB 160 Skye 132 Stanbic IBTC 114 Sterling 85 Unity 76 Wema 44 FSDH 20.9

472 473 329 259 245 138 187 163 43.7 122 98 63 28 41 19.2

Gross Earnings (N’ billions) First Bank Zenith GTBank UBA Access Diamond FCMB Fidelity Skye Stanbic IBTC Union Bank Sterling Unity Wema FSDH

396 311 220 213 180 165 131 127 130 111 103 90 62 37 10.8

480 372 247 228 218 188 148.7 136 134 130 102 102 77 42 12.7

Profit After Tax (N’ billions) GTBank 93 Zenith 92 First Bank 83 UBA 40.1

86 83 71 46.5

Access Stanbic IBTC Diamond FCMB Union Bank Fidelity Unity Sterling Skye FSDH Wema

39.9 32.1 22.1 22.1 20.5 15.8 10.6 9.0 8.6 2.5 2.4

26.2 20.8 29.7 16 5.1 7.7 -2.3 8.3 18.4 1.9 1.6

Return On Assets (N’ billions) Stanbic IBTC 30% GTBank 27% Unity 20% Zenith 19% First Bank 17% Ecobank 16% UBA 15% Access 15% Diamond 13% Sterling 12% FSDH 12% Union Bank 10% Fidelity 8% Skye 7% Wema 6%

23% 28% - 57% 18% 15% 7% 19% 11% 24% 15% 10% 3% 5% 16% 7%

Adjusted Liquidity Ratio Stanbic IBTC Diamond Zenith FSDH UBA GTBank Fidelity Unity Bank First Bank

61% 37% 47% 40% 35% 50% 45% 32% 33%

46% 42% 41% 38% 37% 37% 35% 32% 30%

Wema Ecobank Sterling Union Bank Skye

30% 28% 25% 23% 17%

51% 26% 0% 30% 36%

Non-Performing Loan Ratio FSDH 0% UBA 1% Access 1% Zenith 2% Sterling 2% Wema 2% First Bank 3% FCMB 3.6% Diamond 4% Stanbic IBTC 4% Ecobank 4% Union Bank 5% Fidelity 5% GTB 5% Skye 6% Unity 18%

0% 1% 2% 2% 2% 2% 3% 3.9% 3% 4% 6% 6% 4% 5% 3% 26%

Cost Efficiency Ratio GTBank Stanbic IBTC Zenith Access Union Bank FSDH First Bank UBA Ecobank Unity Skye Diamond Sterling Wema

46% 22% 30% 17% 4% 9% 23% 24% 8% - 54% 15% 20% 10% 5%

45% 31% 29% 21% 20% 20% 19% 19% 18% 18% 17% 13% 11% 7%

Vanguard Annual Banking Review is published in association with Global Value Analytics & Advisors Ltd (Dr. Peter Amah, Research Adviser)

46— Vanguard, MONDAY, DECEMBER 21, 2015

Vanguard, MONDAY, DECEMBER 21, 2015—47

Media & Advertising

NIMN set to strengthen regional operations ...As Agenmonmen picks 1st VP ticket Stories by PRINCEWILL EKWUJURU

he council of the National Institute of Marketing of Nigeria, NIMN, has stated that one of its focus in the next few years would be to strengthen its regional operations by further enhancing the status of its chapters. This, according to the Council, represents a way of deepening its membership drive outside Lagos, its traditional catchment area, as Agenmonmen is elected First Vice President. Disclosing this at the institute’s Annual Marketing Conference and AGM, held recently in Enugu, the institute’s president, Mr. Ganiyu Koledoye, stated that the institute’s decision to hold some of its key activities such as the Conference, in other regions of the country, outside Lagos, was in tune with that vision of further enhancing the status of those regions and bonding them with people in those regions. He expressed delight that members from the nation’s academia are increasingly showing interests in the institute’s activities, as evident in the turn-out at the Conference, noting that such participation from that sector would go a long way in bolstering the public confidence in the quality of training being churned out by the institute. ‘I’m highly delighted that we are witnessing increasing interests from the nation’s

LAUNCH - From Left: Aisha Ahmad, Head Consumer and Privilege Banking, Diamond Bank Plc; Omotunde Adebowale David , On-Air- Personality, WazobiaFm and Ayona Trimnell, Divisional Head, Corporate Communications, Diamond Bank Plc at the ‘DiamondXtra Season 8 Launch’ in Lagos. tertiary institutions, as evident in the attendance that we are having here today. These are people, who, hitherto, would not have anything to do with the institute or its activities because the marketing institute was bedevilled with crisis in those days. ‘Today we can see that we are getting more and more members from the nation’s tertiary institutions. And we are happy that some of them

would even play a key role in the next council of the

These are people, who, hitherto, would not have anything to do with the institute or its activities because the marketing institute was bedevilled with crisis in those days

ConSol marks decade of operation C ontact Solutions Limited, trading as th ConSol, celebrates its 10 year operations in Nigeria . ConSol is renowned as top of the class for bridging the gap between Nigerian companies of all shapes, sizes, active in various

industry sectors and their quest for quality customer service delivery.The management solutions company, is changing the face of ICT in Nigeria within its 10 years of operation. ConSol has renewed its commitment to deliver more value-added

Verve launches new mobile app, 'Verve World'

institute,’ he stated. Meanwhile, the Marketing Manager, Nigerian Breweries Plc., Mr. Tony Agenmonmen, has been elected as the First Vice President of the institute. By this victory, Agenmonmen who was elected unopposed, by a voice vote, takes over from Mr. Rotimi Olaniyan , the former occupant of the office, who had served his statutory two-year term in that office. A Professor of Marketing and the Chairman of the Enugu State Chapter of the institute, Prof. Justie Nnabuko also replaced Dr. Rotimi Oladele as the second Vice President.. Unfolding his plans before the elections, the Nigerian Breweries chieftain stated that one of his priorities, would be to market the institute and its activities, through the institute’s Council to the Corporate Nigeria. Expressing his delight at the achievements of the present Council, Agenmonmen stressed the need to get more corporate organisations to be involved in the activities of the institute.

erve International, African payment card brand, has launched a new mobile app, ‘Verve World’, which enables cardholders to store all their payment options and carry out everyday transactions without physically using their cards. The app features ‘Paycode’, Verve’s latest innovation. Users of the Verve World app can generate a ‘Verve Paycode’, a unique one-time code valid for 24 hours, which can be used to withdraw cash from an ATM machine without a card. The Verve Paycode can be sent to a loved one or friend to withdraw a pre-set amount of money from most ATMs in the country. Verve Paycode is the latest in a string of initiatives and partnerships as Verve International continues to innovate and consolidate its leading position in payment transactions and services across Africa. The service opens a new range of possibilities for users and also offers a new level of security as cardholders can still carry out regular transactions as usual without the need to move around with a physical wallet. Other services available on the Verve World app include: Verve eCash funding; quick

recharge transactions; Verve Rewards balance check; and enabling or disabling cards from performing international transactions. Speaking at a stakeholder engagement event in Lagos, Chief Executive Officer of Verve International, Charles Ifedi, said the Verve World app has been tailored specifically for the African market and is an example of how, here at Verve International, we continue to push the boundaries of technological innovation to address local payment challenges. “We continue to see growing demand from our cardholders for easy, secure and convenient payment methods irrespective of the payment instrument being used. Therefore we designed the app to address the need for urgent access to cash without a card, through Verve Paycode, (a key feature in the APP) which can also be generated and sent to friends and family for cardless withdrawal at ATMs. Verve Paycode can also be generated via USSD channel, using any phone including feature phones, by simply dialing *322*8*amount#. We believe that the technology this app offers will revolutionize how we manage our money.”

services to its existing and potential clients across industry, commerce and service sectors. Ademola ‘DEm’ Eleso, Chairman, ConSol Ltd, disclosed that the company has one of the largest deployment of outsourced call centre agents in Nigeria and a supremely efficient single-site contact centre complex employing hundreds of Contact Centre agents, serving multiple clients in West Africa. Thus making ConSol one of the most sophisticated environments in the country – you can feel the productivity of people, processes and technology in harmony, at our facility.”We continue to create more value for our customers by providing first class contact centre/call centre services that deliver on customer satisfaction whilst reducing costs. Consequently we help organisations increase profitability, by executing world-class inbound and outbound contact centre business processes and reducing total cost of ownership (TCO), of this core customer service function,” he said. DEm explained in a press conference in Lagos that ConSol has combined strong ICT and customer management solutions in the last 10 years.

StarTimes adds new Channels, takes two to China

ay-TV service provider, StarTimes says it making an addition of a new channel, Sony SAB and a documentary series titled Nigerians in China on Hausa channel, Dadin Kowa, plans to take two persons to China. Sony SAB is a classic Indian general entertainment and comedy-centric television channel. With its premiere on StarTimes (DTT Channel 509, DTH 554 ) on December 1 and the upward yearnings of Nigerians for general Indian entertainment programmes, StarTimes subscribers will be thrilled with non-stop Indian entertainment and lifestyle programs. The new channel is available to StarTimes subscribers on Classic bouquet for DTT and Indian bouquet on DTH. Some of the special programs lined up for the festive season include F.I.R, a detective movie; TU MERE AGAL BAGAL HAI, a comedy show; BAAL VEER, kids super hero show and TARAK MEHTA, a comedy show among other great and entertaining innovations.

Kasapreko expresses commitment to rewarding loyalty

asapreko Company Nigeria Limited, makers of Alomo Bitters has reaffirmed its commitment to rewarding partnership, productivity and entrepreneurial excellence, this was demonstrated at its wholesales event where the company rewarded wholesalers who performed remarkably well in the 2015 fiscal year. The prize award ceremony for the company’s ongoing trade promotion which held at the trade fair complex on Badagry Expressway, Lagos, was aimed at rewarding leading valuechain operators who had distinguished themselves in the sales of Kasapreko’s recently introduced premium liquor brands- Kalahari Bitters, Alomo Silver Bitters and Carnival Strawberry. Speaking at the event, Wholesale Manager, Kasapreko Company Nigeria limited, Jennifer Nwodo said: “ we appreciate your partnership towards the successful on-trade introduction and sales of our premium brands. We celebrate our amiable and distinguished key distributors who can testify that as a company, Kasapreko Company Nigeria Limited is ever interested in ensuring that our business partnership is of mutual benefit to all stakeholders.

48— Vanguard, MONDAY, DECEMBER 21, 2015

(0805 220 1997)

to additionally remove N1,220bn ($6.13bn) of perceived systemic Naira liquidity with sales of government Treasury bills before March ending 2016. Notably, Treasury Bill sales is CBN’s instrument of choice to control money supply, and establish price stability in the market place. Furthermore, the Apex Bank and the Debt Management Office also additionally borrowed over N50bn long term loans in December, despite the attendant double digit interest rates which are clearly inconsistent with sovereign, risk free, loans of resource endowed countries such as Nigeria. Revealingly, these government loans were all oversubscribed by well over a 100%, i.e. a loud attestation to the prevailing high systemic liquidity, which also underscores the stranglehold of banks on sovereign debts in preference to real sector lending. Nevertheless, despite our reduced export revenue, unless, there is an urgent intervention by either President Buhari or the Legislature, Naira liquidity surfeit would clearly remain a challenge to alleviating poverty and successful promotion of economic growth in 2016. However, the adoption of dollar certificates/ warrant for allocating dollar denominated revenue will surely minimise Naira liquidity and shore up Naira value and also positively restrain inflation. A steady hardening of the Naira exchange rate will also gradually promote public preference of the Naira as a stronger store of value than the dollar. Evidently, so long as CBN continues to tackle the problem of an ever sliding Naira rate from the prism of demand for dollars, rather than frontally addressing the bogey of eternally surplus Naira, the end of our economic dislocation will never be in sight. SAVE THE NAIRA! SAVE NIGERIANS

Naira exchange rate, CBN “don” miss road T

he Central Bank of Nigeria is obviously, currently losing the battle to arrest inflation and the unyielding slide in the Naira’s exchange rate. Regrettably, with inflation persistently closer to 10%, all static incomes have lost over 40% of purchasing values since 2010; thus, the laborer’s N18,000 minimum wage may just be worth less than N10,800 today. Instructively, however, spiraling inflation is, usually, primarily triggered by uncontrolled and liberal money supply. Consequently, monetary authorities in successful economies everywhere, endeavor to keep inflation below 2% by managing money supply! Unfortunately, prevailing near double digit inflation rates were compounded by over 25% Naira devaluation this year. Alarmingly, the Naira has plummeted from N197 to below N270=$1 in the parallel market, while the huge margin between both rates has encouraged financial malfeasance and resulted in significant market distortions, which invariably promote rent seeking while discouraging any serious commitment to grow the real sector, and create more jobs. Historically, Nigeria’s rising rate of unemployment and deepening poverty correlates loyally with Naira’s steady depreciation from 50kobo to N197=$1; consequently, in order to earn the same purchasing value that 50kobo commanded before 1980, Nigerians must now perform the impossible task of working almost 400 times harder today. Inevitably, therefore, the consequences of high inflation rates and a sliding Naira exchange rate have ultimately propelled us amongst the World’s poorest nations. Incidentally, dollar scarcity cannot be the primary cause of weaker Naira

exchange rates as often alleged; for example, Nigeria earned bounteous dollar revenue when crude oil prices rose steadily from $53.41/barrel in 1979 to well over $140/barrel in 2008, while average output also remained consistently above 2million barrels per day since return to civil rule; part of the fortuitously, consolidated revenue surplus of over $12bn was sunk into the power sector without any observable positive impact, while another $18bn also became available for the controversial London/ Paris Club debt exit. Furthermore, in compliance with IMF recommendations to liberalise our ‘embarrassingly’ increasing

order to conserve forex. Nonetheless, every account holder is still entitled to additional $7,000 weekly ($336,000 annually), for international POS Transactions. It is undeniable that these payment platforms provide ample opportunity to fund smuggling, currency round tripping and money laundering, and it is therefore not surprising that Nigeria, ultimately became one of the largest markets for bulk currency trade. Curiously, these liberal forex windows are still kept wide open by CBN, while genuine real sector operators who can add value and create jobs are constrained to patiently await official allocations or

It is undeniable that these payment platforms provide ample opportunity to fund smuggling, currency round tripping and money laundering, and it is therefore not surprising that Nigeria, ultimately became one of the largest markets for bulk currency trade. dollar supply, the CBN licensed about 3,000 Bureau De Change and provided them with weekly dollar allocations that often exceeded total forex provision to the real sector; ironically, every Nigerian citizen could also access up to $150K with Naira debit cards at official exchange rates annually from ATMs abroad. Inexplicably, however, despite the healthy reserve base, the Naira rate still depreciated from N80 to N160=$1! However, in the wake of the present collapse in crude prices, CBN has reduced international ATM withdrawals to $300/day (about $110,000 annually) in

alternatively patronise, oppressive black market dollar rates to fund their businesses. Instructively, if the PRIMARY cause of Naira’s depreciation is not identified and minimized, the forex market would steadily become unraveled and the parallel market rate may alarmingly exceed N400=$1 with disastrous economic consequences in 2016. Historically, CBN’s attempt to manage Naira exchange rate has always been targeted at curbing dollar demand. It is instructive however, that high dollar demand is actually a function of public perception of the dollar as a stronger and safer store of value than

Naira. Thus, unless actual market dynamics alter this perception, any attempt to control dollar demand or restrict access to supply, will invariably only instigate further rejection of the Naira as a safe store of value. If, however, the CBN recognises persistently surplus Naira as the prime determinant of the dollar/ Naira exchange rate, then, our decades long sojourn in the wilderness of monetary strategy will end. Evidently, the unceasing suffocation of systemic Naira liquidity invariably weakens Naira exchange rate in a market where CBN conversely auctions ‘small’ rations of dollars weekly. It is critically pertinent therefore to seriously interrogate the primary cause of systemic Naira surplus. Incidentally, former CBN Governor, Chukwuma Soludo noted after an MPC meeting in June, 2005 that: “The major source (cause) of huge liquidity injection has been the monetisation (read as the substitution of naira allocation for dollar denominated revenue) ...” Soludo therefore warned that…”the (adverse) consequences of excess liquidity (inflation and weaker Naira) stare us in the face.” If, indeed, according to Soludo, Naira substitution for just $1b distributable revenue wreaks such havoc on liquidity, one can only imagine what damage Naira substitution for an estimated $30bn annual distributable revenue would cause. Instructively however, last week (December 2016), in deference to problematic liquidity surfeit, the CBN again indicated its intention to borrow and store another N135bn as idle funds, to manage the debilitating challenge of Excess Naira supply before the year ends. The CBN has also projected

Business & Economy Ex director hails National Assembly over new SON Act By FRANKLIN ALLI

former director of S t a n d a r d s Organisation of Nigeria, SON, has applauded the newly amended SON Act 2015 by the National Assembly. Mr. Damian Agbanelo, the ex-director, said that the new SON Act has given the agency more statutory powers to reduce substandard products in the country to ten percent, and deal with people who are in the business. Mr. Agbanelo who is also the Chairman, Board of Trustees of the Improved and Healthy Living Development Initiative

(IHLDI) urged the Director General of the agency, Dr. Joseph Odumodu to immediately commence the implementation of the new Act. He noted that notwithstanding the daunting challenges being faced by the agency, it has frontally continued to battle importers of fake and substandard goods in the country with sustained surveillance activities which had led to recent massive seizures and removal of identified substandard and unwholesome products out of the market. He advocated that as a matter of necessity government had better return SON back to the sea ports as most of the

identified fake and substandard goods came through the sea ports. ‘ “It is better to checkmate containers bringing these products to the country at the sea ports rather than pursuing them on the roads and warehouses as well as open markets,” he said. On the focus of his NGO, he stated that IHLDI has taken the onerous responsibility of ensuring the development of tidy and healthy environment in the society as well as promoting and sensitising the public on the imperatives of manufacturing, importing and patronising standard products in Nigeria.

Omoh Gabriel Babajide Komolafe Clara Nwachukwu Peter Egwuatu Yinka Kolawole Favour Nnabugwu Godwin Oritse Godfrey Bivbere Michael Eboh Franklin Alli Ifeyinwa Obi Rosemary Onuoha Nkiruka Nnorom CONTRIBUTORS Princewill Ekwujuru Jonah Nwokpoku Naomi Uzor Providence Obuh LAYOUT

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Vanguard, MONDAY, DECEMBER 21, 2015—49 Send Opinions & Letters to: opinions1234@yahoo.com

Justice for the living, justice for the dead

UMAN history is replete with instances of the people getting fed up with official policies and taking on the government. Monday January 9, 2012 was one of those days when the Nigerian people in anger, decided to shut down the country. The populace succeeded in taking over the towns and cities across the country of over 167 million people, but there were desperate efforts to retake the streets. One of them occurred in Ogba, a suburb of Ikeja, the Lagos State capital. One of the two busiest and longest streets in the area is Yahaya Abatan. But on this day, like in other parts of Lagos, the street was completely deserted with shops and businesses closed and zero vehicular traffic. On a stretch of this road, youths played football with some spectators on the side line, while a few people gathered beside a newspaper vendor reading newspapers and discussing events in the country. Suddenly, a police van RRS 101A arrived the scene. The police team was led by Chief Superintendent of Police, Mr.

Segun Fabunmi the then Divisional Police Officer (DPO) of Pen Cinema Police Station. Mr. Fabunmi with a 28-year experience in the police, ordered the youths to stop playing football and disperse. They took it for a joke since they were not demonstrating or hindering anybody from moving about. One of the spectators watching the match, 28-year old Demola Abiodun Aderintola Daramola, a tailor and commercial motorcycle rider jokingly told the police officer to leave the youths alone. The policemen seized him while other youths started moving away. Phone cameras and video recording by some of the witnesses showed Daramola, wearing a green t-shirt over blue jeans sitting on the street with his two hands up in the air in apparent supplication while three armed policemen; two in the uniform of the riot police, and the third, wearing bullet proof vest, were beating him. At a point, the DPO shot Daramola, execution style and turned his gun on other citizens he could

find. Other policemen joined their boss and began shooting indiscriminately at the fleeing youths. Mr. Daramola, a resident of 6, Aderinton Street, Ogba who had been shot in the crotch, got up and ran, but he had already lost a lot of blood and only managed to get to the nearby Abeokuta Street, where he sat down, and apparently died. Meanwhile the DPO and his men chased the other Nigerians like hunters after rabbits, downing four additional persons. Mr Christian Amadi had one of his right hand fingers torn off by a bullet. Twenty three-year old Samuel Egbujor, a student had gone to read newspapers at the newsstand when the harbingers of death arrived. Egbujor who was shot in the thigh later said on his sick bed “ I did not even know I had been hit. I simply heard the shot and realized that I felt a sharp pain in my thigh. The

Mr. Abubakar Alimi, a businessman was watching the youths play football when the shooting started, he bolted from the scene like Usain Bolt in a 100 metres Olympic gold medal race, but a bullet was faster, it cut him down

Not on the same page

By Eric Teniola

ETWEEN 1979 and 1983, there were 449 members of the House of Representatives. The speaker of the House then was Chief Edwin Ume Ezeoke from Nnewi while his deputy Alhaji Idris Ibrahim was from Minna. The Leader of the House then was Alhaji Yinusa Kaltungo from Tangale-Waja South, a complete gentleman. The following members were recognised as the chief whip of their parties: Prince J.S. Sangha-NPN, Mr. Tom U.B. EgbuwokuUPN, Mr. D.D. Dafuan- NPP, Dr. Junaid S. Muhammed-PRP and Dr. Gordon J. IdangGNPP. Apart from the committee of selection, the House had 26 standing committees. The committees are House committee, business, public petitions, agriculture, forestry, fisheries and animal science, public service matters, communications, defence,judiciary,education,health, labour ,finance, external affairs,public works,aviation and transport, Petroleum and energy conservation, Mines and power, Commerce, Science and Technology, appropriation, internal affairs, banking and currency, housing, community development and environment, Veteran affairs and social welfare, water resources, Federal Capital Development and public account committee. Pardon me to remember with nostalgia at the risk of offending many, some members of that House. I remember Chief Olaiya Fagbamiye, Ibrahim Nagodiya, Kevin Nwosu, Chief Blessing Kayode, Victor Masi,who later became Finance Minister, Dr. E.J. Sowho, Mr. Rasheed ShittaBay,Funso Akinyosoye, Ibrahim Zailani, Godwin Nwodi,Mrs. Abiola Babatope, Tubo O. Bob Manuel, B.A. Shaba, Samuel Udo Bassey,John Ekpeyong,John Fadeyi, Ambrose Gapsuk, B.J. Abegunde,

C M Y

Aliyu Adamu, Lam Adesina,F.C. Adigwe, Debo Akande, F.A. Akinbiseyin, Bulamon Ali,Razak Apalara,Tom Egbuwoku, J.C. Emeka, G.A. Falae, Saliu Famuyide, P.A. Gbinije, Mohammed Hassan, Garba Isiaku, Lateef kare Kataiyeyanjue,Ladipo Labiyi, Sule Lamido, Maina Ma’aji, Ingo MacEteli, A.N. Nweke, Dr. Chikwe Obihara, Ralph Obioha, Isidore Obasi, Peter Olayemi Obaoye, A.O. Omisore, Olatinwo Otegbeye, Nuhu Paloma, Akintunde Rotimi, Labaran Tanko, Abubakar Tuggar, S.U. Wanganga, Godwin B. Wodi, Folorunso Yinusa, Ahmed Tijani Yusuf, Danjuma Zubairu,Olusola Afolabi, Z.O.K. Adetula, Stephen Alete,M.A. Agbamuche, Barnabas Falu, Husseini Gajango,Ambrose Gapsuk, F.O. Iyayi among others. Within the same period there were 95 Senators. The President of the Senate by then was Dr. Joseph Wayas from Ogoja while the Deputy Senate President was Senator John Wash Pam from Jos. The leader of the Senate was Dr. Abubakar Olusola Saraki from Ilorin/Assa, my friend. The other leaders of the various parties were Senator Jonathan Akinremi Olawale Odebiyi-UPN, Senator Jaja Anucha Wachukwu-NPP,Senator Idrisa Kadi- GNPP and Senator Ibrahim BarauPRP. There were 17 standing committees in the Senate. These were Transport and

Imagine a Minister who has three portfolios. By calculation he will attend to almost eighteen committees

only thing I was concerned about was to run. But I realised that my thigh was bloody. Nobody was protesting when we heard the shot.” Mr. Monday Joy, 20 was distributing protest handbills when he saw a policeman shooting people. He began to run, but was felled by a bullet. Mr. Abubakar Alimi, a businessman was watching the youths play football when the shooting started, he bolted from the scene like Usain Bolt in a 100 metres Olympic gold medal race, but a bullet was faster, it cut him down. With a culture of hospitals refusing to treat persons having gunshot wounds unless there is a certified Police Report, residents spent time persuading the police to issue reports for the victims, then rushed them to the Ifako Ijaiye General Hospital which despite the Police Report, refused to treat the victims. Finally, a private medical facility, the County Hospital admitted and treated Egbujor, Joy and Alimi. The police initially claimed that the youths were engaged in a violent protest and that Mr. Daramola tried to dispossess the DPO of his gun leaving the latter with no choice but to shoot the victim. But within hours, and apparently to douse rising anger, the police authorities officially condemned the police team that carried out the shooting and arrested DPO Fabunmi. The Spokesperson of the Lagos State Police Command, Mr. Samuel Jinadu told the media “When the Commissioner of Police, Mr. Yakubu Alkali, heard of the incident, he ordered that the DPO should be arrested. Right

aviation, Communications, Education, Science and Technology,Defence,Public Works, appropriation and Finance, Health and Social Services, Judiciary and Public Service, Banking and Currency, Petroleum and Energy, Foreign, Labour and Internal Affairs, Agriculture and Natural Resources, Water and Mineral Resources, Trade and Industries, Federal Capital, Housing, Urban Development and Local Government. Pardon me for remembering with nostalgia too, some senators of that era. I remember Senators Cornelius Olatunji Adebayo,Uba Ahmed, Mahmud Waziri, F.O.M. Atake, Ibrahim Dimis, David Omueye Dafinone, AbayomiAdeyosola Durosimi, Abraham Aderibigbe Adesanya, Ameh Ebute, Emeka Patrick Echeruo, Jaja Anucha Wachukwu, NosikeIkpo, Daniel Adetola Ladega, Isa Obaro, Onyeabor Obi,David Olatunbosun Oke, Stephen Adebanji Akintoye, Muhammed Girigiri Lawan, Cyrus Nunieh, Kunle Oyero, Michael Emmannuel Onunkun, Sabo Bakin Zuwo, ObiWali, John Osiomele Umolu, Joseph Sauwan Tarka, Samuel Olu Sogbehin, Jubrin Salihu, Buka Sanda, Sikiru Ayodeji Shitta Bay, Mubashir Akanbi Abiru, Ayoola Adeleke, Adeyiga Omopenu Ajayi, Ahmadu Ali, Nathaniel N. Anah, Obafemi Ayantuga, Ibrahim Barau, Bello, Bakorri, Oyibosiya Eberewariye, Francis John Ellah, Donald Dick Etiebet, Ayo Fasanmi, Adamu Gaya, GayusGilama, George Baba Hoomkwap among others. At that time there were no Vice Chairmen for the Committees. In parliamentary terms, committees deal with assigned Ministries. The Chairman of any Committee in the National Assembly has almost the same responsibility with that of a Minister and almost the same paraphernalia of office—official vehicles, offices and personnel,etc. At that time we had 19 states, now we have 36 states with 109 Senators and 360

now, he has been arrested and handed over to the State Criminal Investigative Department (SCID) for discreet investigation. When the investigation is concluded, the report will be made known to the public.” Commissioner of Police, Alkali while handing over Mr. Fabunmi to detectives in the presence of some journalists told him “You are on your own. I was not there when you fired the shot. You and God know the truth; but the law must take its course. So I am handing you over to the SCID for interrogation” The populace is used to impunity by security forces. The decision by the police to distance itself from its agent could have been due to the balance of power on the streets on that day. On May 15, 2012, the Lagos State Government arraigned Mr. Fabunmi on a seven-count charge of murder, attempted murder and causing grievous bodily harm. Finally on Monday, December 14, 2015, three years after the murder, the dismissed cop stood before Justice Olabisi Akinlade who in sentencing Fabunmi to ten years imprisonment for the lesser crime of manslaughter, and five years for injuring others, said “He definitely knew that shooting an AK47 can cause grievous bodily harm to anyone the bullet hit. The fact that he was on a lawful duty did not mean that he should have shot his gun sporadically.” The living got justice, the populace saw justice done. But Daramola’s family is out there in need of assistance. That is the justice we can render Daramola.

members of the House of Representatives. The Speaker of the House of Representatives, Mr. Yakubu Dogara has constituted 96 committees. He also named deputy Chair persons for such committees. According to media report, the APC got 54 chairpersons while the PDP cornered 38. A breakdown of the committees shows that 3 or 4 committees will deal with one Ministry. In short, 192 members of the House of Representative out of the 360 members are either Chairpersons or Deputy Chairpersons of the 96 committees. Likewise the Senate has sixty-four standing committees with One hundred and eight Senators. President Muhammadu Buhari has reduced the Ministries to only twenty-five. If we are to go with the calculation of the National Assembly, ninety-six committees will deal with twenty-five Ministries in the House of Representatives while Sixty-four committees will deal with twenty-five Ministries and some of their Parastatals. It is ridiculous. Imagine a Minister who has three portfolios. By calculation he will attend to almost eighteen committees. What time has such a Minister got in supervising his Ministries. The current rhythm in government is the reduction of the cost of governance. And I guess that is why President MuhammaduBuhari has reduced the number of Ministries. But in the National Assembly instead of a reduction in the cost of governance, they are increasing it. What will ninety-six committees achieve in the House of Representatives and what will sixty-four committees achieve in the Senate? In some instances, it will lead to duplication of efforts by the various committees. Definitely it looks as if the National Assembly and the rest of the country are not on the same page.

*Mr Egbejumi-David, a commentator on national issues, wrote from Lagos.

50—Vanguard, MONDAY MONDAY, DECEMBER 21, 2015

How CAC elder escaped from den of ritualists •As one-chance operators devise new strategies By Bose Adelaja

R. Fajemidagba Foluso is an elder in the Christ Apostolic Church, CAC, Mowe in the Obafemi Owode Local Government Area of Ogun State. Foluso who recently had a close shave with death in the hands of persons suspected to be ritual killers, narrated his ordeal to Vanguard Metro. According to him, he boarded an inter-state bus at Mowe on Tuesday November 24, 2015, intending to alight at Redeemed Bus-Stop. After paying the N30 fare demanded by the conductor, the bus which picked seven other passengers, sped off. Instead of stopping at the Redeemed Camp Bus-Stop as earlier agreed , the driver headed for the Ogere interchange. It was at this point that the passengers became apprehensive and demanded to know where the driver was taking them to.

Unfortunate passengers Their questions were rebuffed by the speeding driver who instead, ensured that the windows were securely closed. The unfortunate passengers were allegedly striped half-naked and dispossessed of cash and personal belongings before being transferred to a waiting van at the Ogere interchange. Elder Foluso who spoke in an emotion-laden voice, said one of the victims, a boy who was going to write an examination on that fateful day, struggled with their abductors until he was gunned down. Undeterred by the sad end of the boy, the gangsters allegedly carried his corpse along with them until the seven abducted persons were transferred into a fully air-conditioned van which was stationed at the Oghere interchange, ostensibly awaiting the arrival of the “loot”. Recalling what transpired on that fateful day, Elder Foluso said: ‘’All the seats in the van had been removed and we were forced to sit on the floor for the continuation of the journey to an unknown destination. At a point, the vehicle veered off the expressway into a thick forest. But before we left the exC M Y K

pressway, we saw some police check points and cried aloud for help but to our greatest surprise, our abductors started exchanging pleasantries with the uniformed policemen. At a particular illegal check point, some of the policemen whom we sought assistance from retorted, ‘help ko, help ni, abeg follow them to wherever they are taking you to. That’s your own luck...’ The unfriendly attitude of the policemen heightened our fears. We knew at that point that danger was lurking around the corner hence we resorted to seeking God’s intervention. The journey inside the forest took almost three hours before we arrived at a building located on the rock. As soon as we alighted from the vehicle, a man came out from the building to exchange pleasantries with one of our abductors. He spoke in Yoruba language, ‘’Melo l’é ko wa l’óte yi’’ ? (How many did you bring this time around ?). ‘’Seven plus one dead body’’. This response sparked off an argument as the man shouted, ‘’Ki ni mo fe fi oke se? Owo meje ni maa san o (what am I doing with a corpse, I will pay for seven only). He took a headcount to be sure that seven people were actually brought into their den. The vehicle left immediately the man paid an undisclosed sum of money to our abductors. We were later divided into two groups but three of us were put in a room”. Continuing, he said; ‘’A lady among us was wounded severally for struggling with them. On

my part, I kept shouting the name of Jesus. It came to a point that one of the ritualists shouted from within and ordered me to keep quiet. ‘Ta l’o n pa’riwo ni’beyen,’ (Who is making noise over there?), he barked. I continued shouting the name of Jesus quietly and few minutes later, one of the aides who pitied by condition, offered to assist me to escape.

Offer of assistance He asked me to pretend like somebody who was pressed and wanted to answer the call of nature, Luckily, this strategy worked out. The guy asked me to take my clothes and follow him. We trekked for about an hour before he showed me a bush path that led to a village and left. I trekked for another one hour before I got a motorcycle which took me to the expressway where I stood for a while before getting a bus to Lagos. It was during the journey that I realised we were far away from Elelubo, Ibadan. I was finally reunited with my family and

church members. That was how a journey of about three minutes ended up in 24 hours”. The plight of Elder Foluso is synonymous with what hundreds of innocent people go through on daily basis in the hands of “one-chance” abductors and ritualists along the ever-busy Lagos/Ibadan expressway. VM investigations show that one-chance operators along the expressway, have adopted new tactics to trap and rob innocent commuters. Some of the unlucky commuters are sold at give-away prices to prospective buyers who in turn, sell them off to ritual killers who slaughter them and sell to occultists and other evil persons. VM learnt that the amount paid is negotiable and is dependent on the age and sex of the victims. Similarly, delicate parts of the body like the breasts, tongues, private parts and nails allegedly attract higher prices. VM further gathered that since some states in the South-West, especially Lagos, introduced security measures to stem the activities of one-chance operators, they have shifted their base to the Lagos/Ibadan expressway.

This allegation has however being denied by the Police. The Police Public Relations Officer in Ogun State, Mr. Muyiwa Adejobi insisted that the story of Elder Foluso is a mere rumour. “It as a rumour and was not reported to the Command. The Command has a team on anti- kidnapping/cultism, headed by a Superintendent of Police but people think we are not working. We have about 15 similar cases which were reported to us within a space of one week. But none of them was able to present facts to buttress their stories. So, such cases can be regarded as either framed or cooked up to curry favour from the public. I expect the victims to intimate the Police with such developments so that we can go and comb the area, but nothing of such was reported. It is impossible to be kidnapped without informing the Police after your return. Unfortunately, people only go to church for thanksgiving or report their experiences to the media. We call on those who claim to have experienced such to come up and present their facts,” he said.

We knew at that point that danger was lurking around the corner hence we resorted to seeking God’s intervention Going to Apapa from any part of Lagos is akin to passing through the Biblical needle’s eye.

Vanguard, MONDAY, DECEMBER 21, 2015 —51

Why govt must take care of the elderly —DOSEKUN By Chioma Obinna NDOUBTEDLY, older people often have life changes that lead to feeling depressed. Some people go through physical changes affecting their eyesight, hearing, or how well they can move. Others have changes in their health that are treated with many medicines while others have changes in their ability to think and remember. However, coping with these changes, which become more common the longer they live is not easy. The emotional stress of dealing with these changes can cause many uncomfortable feelings, including depression. According to Chief Executive Officer, Outreach Children's Hospital, Festac, Lagos, Dr. Efunbo Dosekun, engaging the elders helped them in coping with these changes. If an older person is depressed, he or she will have problems coping with the changes that are happening in his or her and this is why the society must think of ways to engage the elders that are still very strong. Every human soul needs to be busy in their minds so that they don't fall into depression."

"They must be responsible for their medical problems. They must be responsible for their social, psychological and financial problems. This particular generation between 60 and 90 plus are the people who set up the foundation of Nigeria. They were the people who were responsible for the building blocks for what Nigeria is today. So we must look into their health and reduce their social handicap." On how to reduce depression and other common lifestyle changes in them, she said: "There is need to show them love, care and above all improve their quality of life. If you have an elder at home, there is need to ensure they drink a lot of water to avoid dehydration and be sensitive to their body. Ensure they get regular checks and comprehensive checks at least twice a year. Let their voices be heard. Make them feel they are important that alone will reduce the possibility of them having depression and other complications. Dosekun who disclosed that the Outreach decided to go into taking care of the elderly due to pathetic state of vulnerable group in the country said they

Free medical services

FG tasked on improved investment in health, edu sectors

Dosekun who spoke during a one-day free medical exercise and health promotion for the elderly resident in Satellite Town area of Lagos regretted that due to the economic hardship in the country, most elders have been abandoned to take care of their social, health and physical needs. She stressed that there is need to prevent depression in the elderly by engaging them. According to her, younger people are now more involved in looking after their own direct nuclear family. Decrying that such situation has made it difficult for Nigerian elders to enjoy old age, she said government and Non Governmental Organisations, NGOs must respond to the quality of care of the elders.

By Prince Okafor

HE Lagos State Commissioner for health, Dr Jide Idris, has tasked the Federal Government on the development of the education and Health sectors of Nigeria. Dr. Jide, made this call while speaking at this year’s “August Event’’ organised by Moses Adekoyejo Majekodunmi Foundation (MAMF) in collaboration with St. Nicholas Hospital, in Lagos. He said: “Continuous neglect of this sector will lead to social paralyses. Attention needs to be paid to the building block of education: Pre-school, primary, secondary, tertiary and even vocational,

OUTREACH: Cross section of elders during a one-day exercise/ free medical outreach by Outreach Children's Hospital, Festac, Lagos recently will be providing primary healthcare for the elderly people at a reduced cost. Speaking on the free medical programme, she said the outreach is offering participants free eye checks, dental checks, nutritional screening, blood pressure screening and cervical cancer screening for women who are less than 70 years. "Outreach medical services in collaboration with the Anu Dosekun Foundation (ADF) want to address issues

no matter the field of your endeavour, the workforce is only as good as your foundational education. It is imperative that there is improvement of our health and education sectors for better quality of life and general production output in all spheres of life.’’ He added: “Health and education sectors, are the foundations which forms the bedrock of the nation’s development, the socio-political and economic development of any society is largely determined by the level of attainment of the country with other determinants including the environment, culture and housing.” Speaking further, he also pointed out that

affecting the elderly and other vulnerable group in the society. We found out that Satellite has high proportion of elders; we called them out for a free medical screening and exercise to encourage the society to rise up and take care of the elders. She further stated that the Outreach in collaboration with the Foundation would subsequently offer free medical screening twice every month for elders resident in Satellite area of Lagos.

lack of access; especially financial access to healthcare has seriously affected healthcare delivery. “The integration of adequate medical intelligences and surveillance system, being a useful component, to achieve success in health care in this modern era, system well grounded in routine surveillance, and medical intelligence as a backbone of the health sector is necessary, adequate management coupled with strong leadership principles.” He acknowledged that these are some of the reasons why we succeeded in containing the Ebola issue, although we were just lucky”

Community pharmacists want harmonised prescription system W ORRIED about the challenges of drug prescription in the country, Community Pharmacists have called for a harmonised prescription system that would pave way for easy identification and verification of prescribers as well as improve patient care. The pharmacists under the auspices of Association of Community Pharmacists of Nigeria, ACPN, Lagos State branch, who are urging the Federal Ministry of Health and regulatory councils of professional bodies to come up with a template of how a standard prescription should be in Nigeria. Lagos State Chairman, ACPN, Pharm. Paul Ozieh while speaking in Lagos during the ACPN's 2015 Community Pharmacists Education Conference, said presently in Nigeria, the mode of prescription was chaotic because there is often no way to verify or authenticate prescriptions. "We want harmonised system where public and private hospitals and other health institutions have their prescription format because the patients must of necessity make use of the community pharmacists to service their drugs needs. And if you are on a chronic ailment like

High Blood Pressure, diabetes, you don't have to go back to the hospital every time you want to refill. You need to be able to refill, and you must have a prescription to be able to do so. She recommended that the Federal Ministry of Health should work together with all the councils to come up with a format that would be recognised anywhere as public hospitals prescription format anywhere in the country visa- avis the

We want harmonised system where public and private hospitals and other health institutions have their prescription format

private health sector. She further recommended that to have an effective system, there is need to also harmonised all the lists of registered health practitioners be it physicians, pharmacists, nurses, laboratory scientists, radiographer among others. "We can harmonise their registration status, identities, that way you can trace any prescriber. There are at times at the community level we want to confirm. When the government has done what they supposed to do and the data base is available, then, the community practitioners can put a call through and find a way of accessing that public health institution personnel and then you can confirm at once what needed to be done. You don't have to send back that patient back to the hospital and that way, there will be no time wasted because when people are at critical stages of sickness, time is important," added. She further explained that harmonisation of prescription drugs would benefit both patients; practitioners as it would minimized time wastages, make clarifications of prescription and referral easy. Speaking on the theme of the event

tagged: Positioning Community Pharmacists for Evolving Opportunities", Paul- Ozieh explained that the theme was chosen for their members to look into electronic means of offering services in order to serve their customers better. He said annual continuous education of ACPN also aimed at building capacity of their members as well as update their members of current practices in the practice of pharmacy. In his keynote address, Pharm. Ike Ugwu who noted that pharmacy practice was no longer dispensing drugs alone said pharmacists are expected to partake in research works and play key roles in healthcare. He lamented lack of drug prescription at the community levels blaming it on activities of medical doctors who now prescribe at the same dispense the drugs. Ugwu said pharmacists ought to authenticate prescriptions and know the source before the drugs are dispensed. He regretted that what is currently seen in the country is a situation whereby prescriptions come without identifications, validation and has little or no information of who the prescriber is.

52—Vanguard, MONDAY, DECEMBER 21, 2015

The Yoruba generally trust Buhari because they knew him before now. Generally speaking, if you are acquainted with much of the story, the personality of Buhari is enough to sell

Why Buhari is trusted in Yorubaland — GEN DIYA •Nigeria may have problems producing Buhari’s successor

•Diya: The Yoruba generally trust Buhari

LIEUTENANT GENERAL Donaldson Oladipo Diya (Retd) was Chief of General Staff, CGS, during the military regime of late General Sani Abacha (1993 - 1997). Earlier he served under the military regime of General Muhammadu Buhari as Military Governor of Ogun State between January 1984 and August 1985. Born on April 3, 1944 at Odogbolu,Ogun State, Diya was educated at the Methodist Primary School, Lagos, Odogbolu Grammar School, and then at the Nigerian Defence Academy, NDA, Kaduna. He later attended the United States of America Army School of Infantry; the Armed Forces Command and Staff College, Jaji, Kaduna State (1980–1981) and the National Institute for Policy and Strategic Studies, Kuru, Plateau State. While serving in the military, Diya studied Law at Ahmadu Bello University, Zaria, where he obtained an LLB degree, and subsequently the Nigerian Law School after which he was called to bar as Solicitor and Advocate of the Supreme Court of Nigeria. General Diya was Commander, 31 Airborne Brigade By Bashir Adefaka & Chris Onuoha FTER General Olusegun Obasanjo, you are the second Yoruba man who rose to the position of second-incommand as Chief of General Staff. You seem to have been relatively quiet or reluctant to play an active role among the Yoruba. Why? Apart from the military profession that I retired from, I decided to go into other things. I am also a lawyer by profession because I studied law, went to Law School and was called to bar as solicitor and advocate of the Supreme Court of Nigeria. And I have other things occupying my mind and time. That is it for now. Apart from this office here in my house, I

have another office at Ikoyi, a law firm where my lawyers practice. Besides law practice, I have a church that I manage. I try to be there three times a week and I make sure that I attend the church every Sunday. So when you put all these together, it explains why it seems to you that I am quiet but I am not quiet anyway. The Yoruba, as a body, are very much alive. So many things happen but they do not take them by surprise. The Yoruba, at the maiden Yoruba United Conference at Papa Obafemi Awolowo’s house in Ikenne, cried out over marginalisation by the then Goodluck Jonathan government. Would you say

before he was appointed by General Buhari as Military Governor of Ogun State after which he moved to become the General Officer Commanding (GOC) 82nd Division, Nigeria Army, in 1985 following the ouster of the Buhari government by General Ibrahim Badamosi Babangida. Diya was Commandant, National War College (1991–1993) and was thereafter appointed as Chief of Defence Staff during the brief regime of Chief Ernest Shonekan as Head of the Interim National Government. Diya became Chief of General Staff (Vice President) in 1993 and Vice Chairman of the Provisional Ruling Council in 1994 under Abacha. In this interview in his Lagos residence, Diya spoke about “the Buhari that I know,” saying it would be difficult for Nigeria to get a person like the President if they failed to appreciate and exploit the benefits of his present administration as civilian President. Excerpts:

that the problem has now been solved with the choice portfolios given to Yoruba men and women in the Buhari cabinet? The Yoruba generally trust Buhari because they knew him before now. Generally speaking, if you are acquainted with much of the story, the personality of Buhari is enough to sell.

Personality of Buhari You look at the man and say, “yes, we can trust him.” When you look at his antecedents you will believe that he has done it before and that he will do it better this time. You see, it is not easy to have

a man who has been a General Officer Commanding, a Minister of Petroleum, a Head of State and Chairman Petroleum Trust Fund (PTF), yet, as big as Nigeria is, nobody can really face him and point an accusing finger at him to say, You have done this or that. If somebody comes in, he has been this or that and as big as this country is, nobody can say this man has done something bad before, I think it is worthy of appreciation. I am a living witness, with the personality that Buhari has put up, it will be difficult for him to fail and probably, that may be our next problem. What do you mean?

Continues on page 53

I am a living witness, with the personality that Buhari has exhibited, it will be difficult for him to fail. And probably, that may be our next problem

VANGUARD, MONDAY, DECEMBER 21, 2015—53

Many people did vote for him not just because he is Buhari but rather, they voted for him because he is the Buhari they know and trust and the Buhari nobody can point an accusing finger against

Continues from page 52 When he, President Buhari finishes his tenure, who stands in, who comes in after him will be our big problem. But, maybe we shouldn’t get ourselves troubled over that now because when we get to the river we shall cross it. But it is a problem. What would you say informed Buhari’s decision to appoint you as military governor in your state of origin during his stint as a military Head of State? That policy by General Buhari of picking us from our states of origin as military governors was very good but it had its advantages and disadvantages. When I was in service, I lived in Israel. And I commanded the Nigerian contingent at the Lebanon crisis. So, I know that if you are from a place and you are there to serve, the tendency is there for the people of that area to have respect for you, I mean, knowing your background. So that’s why I say it has its advantages and also, its disadvantages.

Advantages and disadvantages I believe and from the experience I had from that place, I knew every corner of that state; when you are there, you have facts and are objective, you will have nothing to hide. It was an advantage which I had and it was beautiful. Given your vast military experience, in what way do you think the government can quickly tackle the Boko Haram insurgency? When you talk about fighting insurgency, it is a different class of war. And you see, all our soldiers and officers are studying all the conditions that are necessitating the fight against the insurgency. And you should realise that fighting insurgency and fighting regular warfare are two different things. When we were young officers, second lieutenants, we knew and it is still so that the policy or language is ‘fighting and movement’ which is an infantry practice; ‘Fire and Move.’ But that’s fighting a regular war. But fighting insurgency is a different thing. The insurgent fights you and he wants to die. That changes the tactics completely. When you are fighting somebody and the person is running away from you, it is called fighting and movement. When you shoot, the tendency is for him to move and you want to run and pursue him. But when this man who is fighting you wants to remain

Why Buhari is trusted in Yorubaland —DIYA •Diya: Buhari is doing very well

and die, it becomes a different type of warfare. So, those that are on the ground now know that it is a different type of warfare. They are studying it to know how to combat it and I believe they can achieve success doing so. So, how can this new dimension be combated? I am not on ground now. I am retired. The soldiers on ground are competent. They are more versed in the prospects, consequences and tactics. They are there and there are lots of Generals and military intelligence officers, who have no other jobs than to study the situation on ground and they are doing it. For you to stay outside and wanting to advise; it will be difficult. After much clamour for change from the Peoples Democratic Party, PDP, Nigerians have experienced a change under the All Progressives Congress, APC but some people are already complaining and asking where is the change? What is your take on this? For these people, who are shouting and asking that, what do they really want that should have happened within the short period that the government has been on seat? Do they want things to happen in six or seven months? No! We have a life span of the government, which is four years. It is within seven months and people are complaining. They are just wasting their time. I mean, if

a government has a life span of four years with first and second term service, and within seven months out of this serving period, people are complaining, it is not right. Given the fact that Buhari in his first advent operated without democratic structures do you agree with those who say that it is difficult for Buhari to operate under democratic structures and that, that is the reason his government is slow? When people say he is slow or whatever, I don’t agree. The pity I have for him is just to say that maybe he should realise that those people who criticise him don’t know what they are saying.

Military power play Military era is gone, and as a converted democrat, he is doing it very well. In fact, many people who expected to find military power play in the present government are surprised that what they expected when he came to power is not what they are experiencing now. Now he sits down, analyses and takes so many things into consideration before he takes a decision on anything. To recap what I said earlier concerning the end of his tenure, I did say there may be a problem because I am suspecting that to have

somebody like him who the people will naturally trust like they trust General Buhari may be difficult. For Nigerians’ dreams, the hopes are high, the expectations are high. Many people did vote for him not just because he is Buhari but rather, they voted for him because he is the Buhari they know and trust and nobody can point an accusing finger against him. That is what sold him to the general public. You still don’t look your age. Can you let us into the secret of your youthful look? Well everything that happens to a man stems from God. But many people don’t know that. Whether you are a Muslim or a Christian, the ultimate is God and I believe and thank God that every religious individual in Nigeria believes in the existence of God. I thank God that He has saved me. How would you advise Nigerian youths who are looking up to you as a role model? The first thing is to be serious with whatever you do. Be determined and you must be a man. When you choose a thing to do, face it and do it well. Then, listen and have the fear of God. Once you are determined and you are a serious minded person and above all you have the fear of God, you will succeed in anything you choose to do in life.

54 — VANGUARD, MONDAY, DECEMBER 21, 2015

Syria, Libya agreements raise hopes of peace —Pope

OPE Francis yesterday welcomed two agreements aimed at ending the civil war in Syria and forming a national unity government in Libya. Francis, who turned 79 on Thursday, told crowds around the Christmas tree in St. Peter’s Square he was thinking of “beloved Syria (and) expressing my eager approval of the agreement the international community has just reached”. The United Nations Security Council veto powers agreed a draft resolution last week to endorse an international roadmap for a peace pro-

Pope Francis cess in Syria, where almost five years of civil war has killed more than 250,000 people. The Argentine pontiff called for continued peace efforts for Syria and praised the work of

negotiators in Libya, where warring factions signed a U.N.-brokered deal on Thursday intended to bring stability and help to combat a growing Islamic State presence.

U.N sees progress in Yemen talks

EMEN’s warring par ties have agreed on a broad framework for ending their war at talks in Switzerland but they first have to agree a permanent ceasefire, after a week-long truce was widely violated, the United Nations said yesterday U.N. Yemen envoy Ismail Ould Cheikh Ahmed said the two sides would meet again on Jan. 14. The location had yet to be set, although both Switzerland and Ethiopia were possible. “The participants to these talks have unanimously agreed that the ultimate objective that we all have is the end of this war and therefore to have a permanent ceasefire,” Ould Cheikh Ahmed told a news conference in the Swiss capital.

U.N Secretary-General Special Envoy Ismail Ould Cheikh Ahmed “In the next few days all my efforts will focus on that – a comprehensive and lasting ceasefire.” A military alliance of

N Israeli air strike killed Samir Qantar, a Hezbollah militant leader, in Damascus on Saturday evening, the Lebanese group and Syrian state media said yesterday. Israel welcomed Qantar’s death, saying he had been preparing attacks on it from Syrian soil, but stopped short of confirming responsibility for the strike that killed him. A former national security adviser to Israel said he doubted the strike would escalate hostilities between Israel and Iranian-backed Hezbollah, whose last major confrontation was in 2006. Israel has formally kept out of Syria’s civil war which started almost five

mostly Gulf Arab countries led by Saudi Arabia began bombing Yemen’s Houthi movement, an ally of Iran, in March to try to restore the government of President Abd-Rabbu Mansour Hadi. The conflict has killed nearly 6,000 people and plunged the impoverished country into a humanitarian crisis. Ould Cheikh Ahmed said the two sides were still far from a ceasefire, describing the trust between them as “nil”.

IS jihadists stole ‘tens of thousands’ of blank passports

HE Islamic State group may have stolen “tens of thousands” of blank passports that it

Lebanese militant leader killed in Israeli raid in Syria

ICC transfers war criminals to serve sentences in the DRC

years ago but has bombed Hezbollah targets there without publicly acknowledging these sorties. Hezbollah, a powerful Shi’ite Muslim group that has sent hundreds of fighters to Syria to support President Bashar al-Assad against rebels trying to topple him, said Qantar was “martyred” in an Israeli raid on the residential district of Jaramana in the Syrian capital, but gave no details. Hezbollah leader Sayyed Hassan Nasrallah was due to speak on Monday evening as both supporters of the group and Syrian loyalist groups said the death of Qantar would be avenged and not be in vain.

could use to smuggle its fighters into Europe as refugees, a German newspaper reported Sunday. The Welt am Sonntag cited Western intelligence sources as saying that IS could have acquired the stolen travel documents in areas of Syria, Iraq and Libya it now controls. The passports could be issued to would-be attackers to enter the European Union as asylum seekers, according to the report. Moreover IS has already launched a money-spinning operation with the fake documents, selling them on the black market where they fetch up to 1,500 euros ($1,630) each, Welt said. European authorities have repeatedly warned of the potential threat posed by refugees travelling with counterfeit documents.

WO former Congolese militia leaders have been transferred from the Netherlands to a prison in the Democratic Republic of Congo (DRC). Thomas Lubanga and Germain Katanga are the first ICC convicts to be allowed to serve sentences in their home country. Former warlord Lubanga is serving 14 years for his crimes, while militia chief Katanga is due to be released in 2016. The ICC says it will help supervise their imprisonment in the DRC. Lubanga and Katanga “have both expressed a preference to serve their respective prison terms in DRC, their country of origin”, the court said in a statement. Their detention in the DRC must conform to international norms on the treat-

ment of prisoners, it said. Lubanga was once one of the most feared rebel leaders in the gold-rich northeastern Ituri region of the DRC. He was found guilty of abducting children as young as 11 and using them to fight his battles. Katanga was convicted for his involvement in a bloody massacre that left

hundreds of villagers dead. Last month, the ICC cut Katanga’s 12-year prison term after he voiced regret and for good behaviour. But Lubanga’s request for early release was rejected by the ICC as “unjustified”. The ethnic conflict in Ituri between 1999 and 2003 is estimated to have killed 50,000 people.

Congolese warlords, Thomas Lubanga (L) and Germain Katanga.

Rwandans vote to lift Kagame’s term limits

released on Monday but this will not change much,” Kalisa told journalists in Kigali. He said Rwandans who voted to maintain term limits were 1.7 percent. More than 6 million registered voters participated in the exercise, representing a voter turnout of 98.28 percent, he said. “(The)voting process was peaceful,” Kalisa said. The provisional results surpass predictions by pollsters that 92 percent of Rwandans would support amending the Rwandans in Nairobi, Kenya, line up to vote at the constitution to remove Rwandan Embassy the term limits.

WANDANS have voted overwhelmingly to lift constitutional restrictions to allow President Paul Kagame to run for more terms in office, said the head of Rwanda’s electoral commission as he re-

leased provisional results at the weekend. More than 98 percent of voters in 30 districts voted to lift term limits for Kagame, Mbanda Kalisa said. “The final results will be

Kenya: Fake bomb forces Air France flight to make emergency landing

N Air France passenger jet was forced to make an emergency landing in Kenya after a fake bomb was found in a toilet, the airline says. The Boeing 777, on its way from Mauritius to Paris, was evacuated at Mombasa airport and the suspicious device taken away for examination. Air France chief Frederic Gagey later said it was made of a cardboard box, paper and a timer. He described it as an “extremely aggressive act”.

The plane, carrying 459 passengers and 14 crew, had left Mauritius at 01:00 GMT and had been due to fly directly to Charles

de Gaulle airport in Paris. Several passengers from the flight have been questioned by Kenyan police.

27 Congo figures form coalition to stop Kabila third term

ORE than 27 highprofile Congolese figures, including Moise Katumbi, considered a main opposition candidate in next year’s presidential polls, have formed a coalition aimed at preventing a bid from Joseph Kabila for a third

term, their statement said. “We have decided to combine our forces, our human and material resources, our strategies and our actions, to create a citizen coalition named ‘Citizen Front 2016’,” the statement reads.

Vanguard, MONDAY, DECEMBER 21, 2015—55

Using human rights to promote corruption and impunity (3) This is the third part of the paper presented by Femi Falana, SAN, to mark the official opening ceremony of the Amnesty International office in Nigeria at Abuja. In the second part which was published Friday, Falana argued that the twin problems of corruption and money laundering, and their ‘offspring’ - poverty - have more in common than one might expect at the outset

By Femi Falana

N a plethora of cases the courts have upheld the fundamental right of citizens and foreigners alike to freedom from unlawful arrest and detention. To ensure that the right to personal liberty is respected it can only be encroached upon by the State in a manner permitted by law. In other words, a person may be lawfully arrested or detained if there is reasonable suspicion that he/she has committed a criminal offence. Any person whose right to personal liberty has been breached without recourse to law is entitled to apply to a high court to secure release from custody and payment of compensation accompanied by public apology. Where criminal suspects in custody are not promptly charged to court the detaining authority is required to apply for a court order to legitimise the detention. This is to ensure that no one is held in custody without any legal basis or due process of law. Last week, some of the principal suspects implicated in the probe of the $2.1 billion and N643 billion arms gate were nabbed by the Economic and Financial Commission. Notwithstanding the confessional statements credited to the suspects and some of their family members a number of shady characters have accused the Buhari Administration of

FEMI FALANA, SAN persecution of political opponents. While some public commentators have called on the government to respect the human rights of the suspects they seem to have conveniently forgotten that the fund allegedly stolen was meant to equip thousands of soldiers whose right to life has been violated as they were killed by terrorists. Pursuant to the ex parte orders validly issued a magistrate court the suspects have since been detained for the purpose of investigation. But in a desperate move designed to divert the

attention of the Nigerian people and the international community from the grave allegations of reckless and criminal diversion of the public funds earmarked for arms procurement to prosecute the war on terror. A Senior Advocate of Nigeria was alleged to have that “a magistrate court has no power to issue a holding charge warrant.” Since these views are at variance with the current human rights legal regime in Nigeria it is germane to point out that while holding charge remains illegal and unconstitutional a remand order issued by a magistrate for the detention of criminal suspects for the purpose of investigation is not illegal.

Purpose of investigation The attention of the “critics” ought to be drawn to sections 293-299 of the Administration of Criminal Justice Act, 2015 (ACJA) which stipulate that a suspect arrested for an offence which a magistrate has no jurisdiction to try, shall within a reasonable time, be brought before a magistrate court for remand. The order which shall be for a period not exceeding 14 days may be further extended provided that if the investigation is not concluded within 28 days the court may summon the appropriate authority to show cause why the suspect should not be unconditionally released. Suspects who are remanded in custody are at liberty to ask for bail or apply to the appropriate high court to secure the enforcement of their fundamental right to personal liberty suspects. Incidentally, I handled the case of Ogor & Others v. Kolawole (1983) 1 NCR 342; (1985) 6 NCLR 53, where a high court declared that the practice of detaining criminal suspects on the basis of a holding charge was a violation of the right to personal liberty. That was the first time in which a holding charge was

Once the public officer completes his/ her term of office the immunity so conferred by the Constitution ends and cannot be extended even for a day

pronounced illegal in the country. The epochal judgment of the High Court was later adopted by the Court of Appeal in the case of Enwere v Commissioner of Police. Notwithstanding the judicial decision section 35 of the Constitution section 236 (2) of the Lagos State Criminal Procedure Law, 2007 provided that “If any person arrested for any indictable offence is brought before a magistrate for remand, such Magistrate shall remand, such person in custody or where applicable grant him bail pending the arraignment of such person before the High Court.” The constitutionality of the section was challenged in the case of Lufadeju v Johnson (2007) 8 N.W.L.R (PT 1037) 535. The apex court did not hesitate in upholding the validity of the provision. According to Muktar J.S.C (as she then was): I do not see that there is conflict between the provision of Section 236 (2) of the Criminal law supra and the provisions of Section 32 of t h e Constitution s u p r a . The fact is t h e r e was strong suspicion that t h e respondent and some others have committed an indictable offence to wit treason. After their arrest by the police, there was the need to property and lawfully keep them in custody, and the only way to do tins was to take them to a Magistrate court who would in turn remand them in custody. They couldn’t possibly continue to remain in police custody without the order of a c o u r t . Concluded, the legal advice of the Ministry of

Justice-is sought... On the presumption of innocence as laid down in Section 33 (5) of the s u p r a Constitution, I fail to see anything in the record before us that there was a contrary presumption in respect of .the appellant. The appellant and his co-accused were taken before the Magistrate Court for the purpose of lawful remand in custody; and that was exactly what the Chief Magistrate did. She did not ask him of whether he was guilty or not, so the issue of his innocence didn’t come to play at that stage of the proceedings. “ However, in recent time, many persons invited by the police or anti graft agencies to respond to allegations of corruption, fraud, money laundering, unjust enrichment etc have obtained court orders restraining the State from investigating or prosecuting them. Some have even obtained orders of injunction which are to last in perpetuity. As I have argued elsewhere, no court has the power to confer any perpetual immunity on any citizen. In Inspector-General of Police v Fawehinmi the Supreme Court

held that a Governor who is protected by the immunity clause under section 308 of the Constitution are not investigated. Once the public officer completes his/her term of office the immunity so conferred by the Constitution ends and cannot be extended even for a day. As the court has no power to turn any citizen into an outlaw it cannot prevent the police or anti graft agencies from arresting or prosecuting any politically exposed person once there is reasonable presumption that he/ she has committed a criminal offence. Therefore, the granting of interlocutory injunctions by judges to restrain the police or anti-graft agencies from investigating allegations of corruption and other criminal offences is illegal and unconstitutional as no court has the power to turn any person into an outlaw in a country which operates under the rule of law. In Fajemirokun v. CCB Nig. Ltd. (2009) 21 WRN 10 the Supreme Court held:“In view of section 35(1)(c)(2)(3)(4)(5) and (6) and Section 36(1)-(12) of the 1999 Constitution which provide adequate safeguard for the arrest of any person suspected of having committed an offence, investigation of the allegation, and the prosecution of the offender, no person has the constitutional right to be shielded against criminal investigation by a judicial fiat or order.” To be continued

56—Vanguard, MONDAY, DECEMBER 21, 2015

Vanguard CLASSIFIED TINUOYE—I, formerly known and addressed as Miss Tinuoye Aderonke Temitope, now wish to be known and addressed as Mrs. Aboyeji Aderonke Temitope. All former documents remain valid. General public please take note.

O L AY I N KA — I , formerly known and addressed as Miss Olayinka Abigail Fapohunda, now wish to be known and addressed as Mrs. Abbie Lateh Ankrah. All former documents remain valid. General public please take note.

IKUMOBA—I, formerly known and addressed as Miss Ikumoba Helen Omowumi, now wish to be known and addressed as Mrs. Oyakhire Helen Omowumi. All former documents remain valid. General public please take note.

N WA D I A LU — I , formerly known and addressed as Miss Nwadialu Florence Sandra, now wish to be known and addressed as Mrs. BrightObukeowho Florence Sandra. All former documents remain valid. General public please take note.

Confirmation of Name This is to confirm that Towolawi Wale is the same person as Towolawi Olawale Ibrahim. All former documents remain valid. First Bank Plc, Access Bank Plc and general public please take note.

OLANREWAJU—I, formerly known, called and addressed as Kemi Omoye Olanrewaju, now wish to be known called and addressed as Felicia Omoye Ikoro. All documents bearing my former name remain valid. First Bank of Nigeria and general public please take note.

UKWEKU—I, formerly known, called and addressed as Ukweku Chavez Ortega, now wish to be known called and addressed as Igho Ortega. All documents bearing my former name remain valid. The general public should please take note.

OPATUNDE—I, formerly known and addressed as Miss Opatunde Tayo Ololade, now wish to be known and addressed as Mrs. Aborisade Tayo Ololade. All former documents remain valid. Intergrated Personel Payrole Information System (IPPIS), Ministry of Defence, Navy Primary School, Okokomaiko and general public please take note.

OLAOGUN—I, formerly known and addressed as Miss Adebimpe Mutiat Olaogun, now wish to be known and addressed as Mrs. Adebimpe Mutiat Kareem. All former documents remain valid. General public please take note.

ODUDU—I, formerly known and addressed as Miss Eseoghene Aries Odudu, now wish to be known and addressed as Mrs. Ese Odome. All former documents remain valid. Diamond Bank and general public please take note.

A N YA N KA — I , formerly known and addressed as Miss Anyanka Chiwunma, now wish to be known and addressed as Mrs. Edeh Chiwunma. All former documents remain valid. General public please take note.

ABRAYE—I, formerly known and addressed as Boundle Funpu Abraye Zinc, now wish to be known and addressed as Funpu Boundle Zinc. All former documents remain valid. General public please take note.

IBENEWEKA—I, formerly known and addressed as Miss Ibeneweka Ifeoma Nnonye, now wish to be known and addressed as Mrs. Anyanabor Ifeoma Nnonye. All former documents remain valid. Colleges of Nursing and Midwifery Council, other concerned bodies and institutions and general public please take note.

ABIOLA-OGUNDIJO —We, formerly known as Abiola Joseph Ogundijo, Olubukola AbiolaOgundijo, Oluwatobiloba Esther AbiolaOgundijo, Oluwaleke Joel Abiola-Ogundijo, Oluwatomiwa Priscilla Abiola-Ogundijo, Oluwaferanmi Daniel Abiola-Ogundijo, now wish to be known as Abiola Joseph, Olubukola Joseph, Oluwatobiloba Esther Joseph, Oluwaleke Joel Joseph, Oluwatomiwa Comfort Joseph, Oluwaferanmi Daniel Joseph. All former documents remain valid. General public please take note.

OBI—I, formerly known and addressed as Prince Kennedy Obi, now wish to be known and addressed as Prince Kennedy Azobandu. All former documents remain valid. General public take note.

AVOR—I, formerly known and addressed as Miss Confidence Adolphus Avor, now wish to be known and addressed as Mrs. Ibu Confidence Yellow. All former documents remain valid. General public take note.

Confirmation of Name I, Eyube Avwerute Wilson hereby confirm that the name Oghoride Wilson as it appears on some of my documents refers to one and the same me. All former documents remain valid. General public please take note.

ODOLO—I, formerly known and addressed as Miss Odolo Bola Bose, now wish to be known and addressed as Mrs Kunoun Bola Bose. All former documents remain valid. General public take note.

OZIRI—I, formerly known and addressed as Miss Doreen Chidinma Oziri, now wish to be known and addressed as Mrs Doreen Chidinma Victor. All former documents remain valid. General public take note.

ISORAE—I, formerly known and addressed as Nekpen Matilda Isorae, now wish to be known and addressed as Nekpen Matilda Ogese. All former documents remain valid. General public take note.

Confirmation of Name This is to confirm that Ezeagboso Nwanne Perpetua, Ezeagboso Amaka Perpetua is the same person. All documents bearing both names remain valid. General public please take note.

NWOKORIE—I, formerly known and addressed as Miss Nwokorie Isabella Ginikachi, now wish to be known and addressed as Mrs. Okafor Isabella Ginikachi. All former documents remain valid. General public please take note.

OPARAKU—I, formerly known and addressed as Miss Scholastica Oparaku, now wish to be known and addressed as Mrs. Scholastica Onuoha. All former documents remain valid. General public please take note.

O N W U K A — I , formerly known and addressed as Miss Chinwe Sandra Onwuka, now wish to be known and addressed as Mrs. Chinwe Sandra Onoriode Ogbevire. All former documents remain valid. NYSC and general public please take note.

ONWE—I, formerly known and addressed as Miss Onwe Ozioma Charity, now wish to be known and addressed as Mrs. Nwafor Ozioma Charity. All former documents remain valid. NYSC and the general public please take note.

ENEH—I, formerly known and addressed as Miss Eneh Oluchi Nora, now wish to be known and addressed as Mrs. Nebo Oluchi Nora. All former documents remain valid. General public please take note.

LUKA—I, formerly known and addressed as Istifanus Vumbur Luka, now wish to be known and addressed as Istifanus Tula Duka. All former documents remain valid. General public, please take note.

ONYERI—I, formerly known and addressed as Miss Obianuju Mercy Onyeri, now wish to be known and addressed as Mrs Obianuju Mercy Onyeri Paulcy. All former documents remain valid. General public please take note.

ONWUCHEKWA—I, formerly known and addressed as Miss Onyinyechi Precious Onwuchekwa, now wish to be known and addressed as Mrs Onyinyechi Precious Odeka. All former documents remain valid. Guaranty Trust Bank (GTB) and general public please take note.

MOBUSA—I, formerly known and addressed as Mobusa Nansy, now wish to be known and addressed as Nansy Omoh Idogun. All former documents remain valid. General public please take note.

SALIHU—I, formerly known and addressed as Salihu Chris Itopa, now wish to be known and addressed as Okeji Christopher Itopa. All former documents remain valid. General public please take note.

EGBITA—I, formerly known and addressed as Egbita Ugbede Hassan, now wish to be known and addressed as Egbita Ugbede Hassan Success. All former documents remain valid. General public please take note.

MIRIKI—I, formerly known and addressed as Miss Miriki Endutimi Sandra, now wish to be known and addressed as Mrs Trakiriowei Endutimi Sandra. All former documents remains valid. General public please take note.

DIOHA—I, formerly known and addressed as Miss Benedeth Nneka Dioha, now wish to be known and addressed as Mrs Benedeth Nneka Akalite. All former documents remains valid. General public please take note.

AZUM—I, formerly known and addressed as Clara Azum, now wish to be known and addressed as ClaraEjene Ojoungha. All former documents remains valid. General public please take note.

ABEEB—I, formerly known and addressed Mr. Bello (Abeeb) Sunday, now wish to be known and addressed as Mr. Bello (Abibu) Sunday. All former documents remains valid. General public please take note.

TOMBRA—I, formerly known and addressed as Sunday Tombra, now wish to be known and addressed as Sunday Okirika Tombrapagha. All former documents remain valid. General public please take note.

ILORAH—I, formerly known and addressed as Miss Ilorah Faith Chinyere, now wish to be known and addressed as Mrs Ozoemena Faith Chinyere Ilorah. All former documents remain valid. General public please take note.

ROBERT—I, formerly known and addressed as Alex Robert, now wish to be known and addressed as Mega Alex Tejiri. All former documents remain valid. General public please take note.

ANOZIE—I, formerly known and addressed as Miss Anozie Prisca Oluchi, now wish to be known and addressed as Mrs Prisca Oluchi Alexandra. All former documents remain valid. General public please take note.

KARAKI—I, formerly known and addressed as Miss Karaki Princess Sarah, now wish to be known and addressed as Mrs Princess Sarah Daniel Oghoruvie. All former documents remain valid. General public please take note.

VANGUARD, MONDAY, DECEMBER 21, 2015—57

Vanguard CLASSIFIED

Diaspora Nigerians, the new face of a better Nigeria By Vera Samuel Anyagafu

tions have grown their economies from tapping into the wealth of knowledge and exposure of their diaspora. And this is the reason diaspora Nigerians are strongly committed, more than ever, to contribute their quota towards realising a better Nigerian society, especially now that the country seems to be facing some serious challenges and obstacles.” In similar vein, Ikechukwu Angela, stated that,“it is imperative for diaspora Nigerians not to wait any longer to ensure that the nation’s economy thrives progressively. For a fact, Diaspora impact on the Nigerian economy will be significant, if we all, do not have to wait for the home environment to be completely ideal and or healthy, before we act and or contribute to building the economy.” She, however, urged all to aim at consistently pursuing that which will bring about a better Nigerian economy, while also suggesting that the home government should increase efforts in agriculture, so as to considerably reduce foreign exchange requirement for importation of products that can comfortable grow in the country. “I also urge the Buhari administration to resolutely tackle some of the many serious challenges confronting the country and strategize ways to taking positive steps that will reposition Nigeria to the path of greatness again.” Angela added that “Diaspora organisation is effectively maintaining links to the country for the purpose of contributing to the country’s development. We are particularly keying into government’s effort to creating a better and prosperous Nigeria.”

IASPORA Nigerians are making con certed efforts to impact positively to improve the nation’s economy and reposition her on the path of greatness again, worldover. The efforts are consequent upon the call by Vice President, Yemi Osinbajo, who advised diaspora Nigerians, especially those living in the developed and advanced democracies, to ensure they bring back as much acquired skills to impact positively on building the country’s economy. While bemoaning the dilapidated situation of the nation’s economy, the opinions of diaspora Nigerians, particularly pointed towards the rate at which the economy is wobbling on a daily basis. And closely following this, Vanguard Consular Advisory (VCA), gathered that any crisis that threatens the integrity or reputation of a country is worth urgent confrontation and or response, hence, Paul Baldwin, a Nigerian based in Germany, who expressed opinion via telephone, that Nigeria is not where it is expected to be in the world, noted that the country needs to improve on its bilateral relationships with other countries, especially in key areas, to bring about the much needed economic boost, the new administration is craving. He said, “Other countries’ leaders are committed to ensuring that they root out corruption, promote democracy and ensure that there is real loyalty to the citizens at all cost. I am wondering why Nigerian leaders redouble efforts only in enriching their purses.” Baldwin noted that though, Nigerians in diaspora appear to be a huge platform for the nation to leverage for the realization of its national developmental aspirations, there is much work needed to be done in terms of encouragement. He said,“The important role that Nigerians in diaspora play respectively, to a large extent, is giving Nigeria a new face abroad. We cannot deny the fact that world-over, na•Nigerian in diaspora

UNN dominates award at NCC essay prize giving ceremony By Emmanuel Elebeke

HE Nigerian Communications Commission (NCC), has celebrated winners in its 2015 nationwide technology essay competition in Abuja. The competition entitled: Broadband: A catalyst to National Development, saw two medical students of the University of Nigeria Enugu Campus, UNEC, winning the first and third positions respectively in the contest. The winner emerged from a pool of 639 entries

from both public and private universities, polytechnics and colleges of education across the country. The first prize winner, a five hundred level medical student of UNEC, Odonoekuma Onyebuchi, received a cash of N500, 000, a lap top, and a printer, the first runners, a student of History and International Relations in University of Ilorin, Kareem Ibraheem got N300,000, a lap top, while the second runners up, another medical student of UNEC, Asogwa Peter

received a cash of N200,000 and lap top. About seven other winners also received N50, 000 consolation prize each. In his address, the Director Public Affairs, NCC, Mr. Tony Ojobo, said the Commission organised the competition in order to increase awareness on the subject matter and to engage and enhance research skills, encourage academic competition and excellence and also build the capacity of students in the higher institutions across the country.

Confirmation of Name That some of my documents carried Emotimighan Ebipade Naomi, others carried Samiama Ebipade Naomi. Both names as they appeared above belong to one and the same person. Now wish to be known and address as Mrs Samiama Ebipade Naomi. All former documents remain valid. General public please take note.

Confirmation of Name This to inform the general public that Ikugwawe Hope, Eleh Grace and Esiolee Oke Grace, is the same and one person. Hence forth now wish to be known and address as Esiolee Oke Grace. All former documents remain valid. General public please take note.

IGBOANUGO—I, formerly Miss Amaka Chinwe Igboanugo, wish to change my name to Mrs Nwamaka Chinwe Nwogwugwu. All former documents remain valid. General public please take note.

DADOER—I, formerly

public please take note.

OHILEBOH—I, formerly known and addressed as Miss Ohileboh Blessing, now wish to be known and addressed as Mrs. Alari Blessing. All former documents remain valid. General public please take note.

AMEDU—I, formerly known and addressed as Miss Bose Amedu, now wish to be known and addressed as Mrs. Bose Ogedegbe. All former documents remain valid. General public please take note.

UZORKA—I, formerly known and addressed as Miss Joy Chinyere Uzorka, now wish to be known and addressed as Mrs. Joy Chinyere Ogorure. All former documents remain valid. General public please take note.

OKEKE—I, formerly known and addressed as Miss Onyeyiriohi Christiana Okeke, now wish to be known and addressed as Mrs. Onyeyiriohi Christiana AkpodeEboh. All former documents remain valid. General public please take note.

OTOMI—I, formerly known and addressed as Miss Christabel Ebruphiyo Otomi, now wish to be known and addressed as Mrs. Christabel Ebruphiyo Aleze. All former documents remain valid. General public please take note.

ENEMOKWU—I, formerly known and addressed as Miss Enemokwu .N. Blessing, now wish to be known and addressed as Mrs. Okoro .N. Blessing. All former documents remain valid. General public please take note.

EDOKPOLOH—I, formerly known and addressed as Miss Omoefe Edokpoloh, now wish to be known and addressed as Mrs. Omoefe Isaiah Awisa. All former documents remain valid. General public please take note.

OKPAKO—I, formerly known and addressed as Miss Okpako Rukaye Cynthia, now wish to be known and addressed as Mrs. Oghenero Rukaye Cynthia. All former documents remain valid. General public please take note.

ONARHORAYE—I, formerly known and addressed as Miss Onarhoraye Efe Veronica, now wish to be known and addressed as Mrs. Okoro Efeoghene Vera. All former documents remain valid. General public please take note.

ONOWEMURE—I, formerly known and addressed as Miss Adline Ovokero Onowemure, now wish to be known and addressed as Mrs. Adline Ovokero Opara. All former documents remain valid. General public please take note.

EMADAMERHO—I, formerly known and addressed as Miss Marian Emadamerho, now wish to be known and addressed as Mrs. Nelson Marian Udoh . All former documents remain valid. General public please take note.

IGUE—I, formerly known and addressed as Miss Sophia Iroroevwo Igue, now wish to be known and addressed as Mrs. Sophia Iroroevwo Oluku. All former documents remain valid. General public please take note.

E K H AT O R — I , formerly known and addressed as Miss Gladys Ighiwiyisi Ekhator, now wish to be known and addressed as Mrs. Gladys Ighiwiyisi Adun . All former documents remain valid. General public please take note.

AGBlWE—I, formerly known and addressed as Miss Agbiwe Aghogho Choice, now wish to be known and addressed as Mrs. Choice Aghogho Williams. All former documents remain valid. General public please take note.

Addition of Name NEMI—I, formerly known and addressed as Nemi Blessed, now wish to be known and addressed as Nemi Blessed Amajuoritse. All former documents remain valid. General public please take note.

ANIEFU —I, formerly Miss Aniefu Hope Uzoma, now wish to change my name to Mrs Chinemelu Uzoma Hope. All former documents remain valid. General public please take note.

OKERE—I, formerly Oliver Nwaorgu Okere, now wish to change my name to Oliver Nwaorgu Ezekwem. All former documents remain valid. Ogun State University, Ago Iwoye, Faculty of Law, NOUN and general public please take note.

known and addressed as Miss Rose Gabriel Dadoer, now wish to be known and addressed as Mrs. Rose Zakaria. All former documents remain valid. General

58—Vanguard, MONDAY , DECEMBER 21, 2015

Alleged $2bn arms probe: EFCC to summon Okonjo-Iweala Patrick Agbobu RE these persons honourable persons or very dishonourable persons? The jury is out and will definitely return the verdict that they are very dishonourable people. Jacob Ekpekurede This is what I have been waiting for. Ngozi Okonjo Iweala is the real arrow head of all the missing money, No mercy. The masses are seriously suffering. Every kobo that belongs to us must be recovered. Okpi Ibe I believe everyone should give account of his/her stewardship. She should account for what transpired under her as the then Min of Finance. However, if GEJ authorised her to do so, GEJ should be held responsible for the appropriation/or in-appropriation of the fund and not her: unless if she benefitted from such. Every officer obeys his master. Onyeishi Kelechi I am dreaming of a forgotten country called Nigeria. When a country decides to dwell on revenge mission and the values of the fighters is- that of hunted, the resultant effect will be penny wise pound foolish. Buhari’s administration and the fight on corruption reminds me of one story my English teacher told us then in secondary school about a bird called Chichi-dodo. This bird is a very clean creature and

without doubt avoids any corrupt or rotten food. In fact, it does not use its eyes to see maggots. But we know that the best diet for birds is maggots. So this bird does not have or make friends with other birds bcos he believes they find joy in eating maggots. So one day, this bird was seriously sick and was almost at the point of death and needed help from any animal for food in other to survive. In this case, a rat brought meat for Chichi-dodo, he ate the meat and survived. But the meat was the flesh of another animal that feeds on maggots. When Chichi-dodo was made the president of all the animals, he decided to quiz all the animals that have taken part in eating maggots. At the same time, he decided to spare the rat and himself knowing fully well that he ate the meat of an animal that feeds on maggot while he was sick. My questions is, is he a fair president? Will he win this war on corruption when he is an evidence of corruption? In other words, I support the war on corruption in Nigeria but am afraid how the war will end because both the accused and complainant have questions marks on their heads.? Example: This is a case of Rotimi Amaechi and President Buhari. The rat and the Chichi-dodo. As a roaring lion, and a raging bear; so is a wicked ruler over the poor people.

BIAFRA: No Nnamdi Kanu, no dialogue with FG —MASSOB, IPOB location and our culture, we have and the Odunayo Idowu Samuel Iddossam Nnamdi kanu’ will rot in detention, signed and sealed. Mike Etuk The truth is that whenever the name Biafra is mentioned, the northerners and the westerners get agitated and stylishly narrow it down to be an Igbo thing because of their perpetual interest in our oil . Like Asari Dokubo said, we are more Biafra than the Igbos. Due to our geographical

Igbos have lived together and done a lot together as Biafrans for thousands of years. The name Niger Delta and South South is a political means the north devised to disintegrate we the easterners for the sole purpose of using our oil. So we are ever ready for anything. Ijaws, Anangs, Isokos, Igbos and others as stipulated in our map are all part of the Biafra land. We are one people and can’t be deceived for the last time. All hail Biafra!

Senate, Reps battle over Frivolous Petitions Bill CplusplusPsalmprax Guys, why are you people arguing? They said they want to pass the bill even though it is against the fundamental human rights. They must also pass the bill where any political leader whether present or past who is found guilty of corruption should be sentenced to death by firing squad or by hanging. This is the real bill that they should pass. AnthonyIfeanyefobi1 Dictator Buhari is secretly supporting anti-media bill but openly deceiving people he considered senseless as he regarded and termed Nigerian people before. Nijanackedwire He who kills to make a living, is always afraid of a man with a knife behind him. You deceptive party came on board by using the social media to sell Nigerians lies against an innocent man, Jonathan. Now you are afraid of same social media. You lie, you hear me,you lie,even if you pass the law that any one caught will be jailed 83 years,Nigerians will write... Be ready to put all Nigerians in jail because we knew that it will come to this. Shameless man. Mr. Josh All things must be regulated, have you regulated your frivolous salaries and allowances? Rubbish! Jim Nwachukwu The social platform must remain a free space for all. If you climb up a tree and

destroy the ladder, you are doomed because you will need it on your way down. Senate should leave free speech alone, don’t gag Nigerians. Let all operate by their conscience. If you are clean, you should not be afraid. If indeed what people say are frivolous, why spend time on it, the best is to ignore them. We have freedom squares every where, let Nigerians alone with free speech. Spend more time on the economy and how to make Nigerians fare better.

Bayelsa poll: Call your aides to order, candidates tell Buhari Opy These are obviously pretenders and not contenders. We know which party is tagged the nest of killers party, their mode of operation and what they are capable of doing. Bloodletting is their trademark. So the unsolicited advice should be directed to the PDP. Glad power changed hands! J. Lawani Buhari’s Janjaweed APC is an evil party that came in disguise..What they did in Bayelsa is a shame to the black race. Buhari’s sheep clothing was torn to shreds in Bayelsa and we have seen his real wolf self Okoko When I watched the video of the Army and SSS snatching ballot boxes in Bayelsa, I felt sorry for Nigeria. Indeed, something worse than the OBJ era is here with us again.

H.I.D Awolowo’s shoes

HO steps into H.I.D Awolowo’s shoes? Let the woman be buried with her shoes, anybody who wishes to wear shoes should look for her own very size and colour. As our thumb prints can never be the same, so our shoes in that regard can never be the same! If it is not original, it can not be original! Romanus Idiroko+2348057907482

Re- fraud in Nigerian banks

Sometime in August, 2015, I personally walked into Ikorodu, Lagos branch of Stanbic IBTC bank to pay in N30,000 into account number 0200357968 but up till date, the account hasn’t been credited. Unfortunately, I misplaced my copy of the teller. I was amazed when I was told at the bank that nothing could be done. I was directed to complain to one of their managers using phone no. 08033034011. He promised getting back to me, but hasn’t till date, despite my reminders. As much as I do not expect an outtight refund, it is disturbing that no effort is made on this issue. I remember dropping an audit copy in a box. With my complaint, it is a shame the bank has shown no concern and given me a feedback. it goes beyond the money..very disgusting! Akintunde Ige.+2348023575656

Ban on small generating set

Banning small generators popularly called “I better pass my neighbour” is unacceptable. Government should know that the level at which the power sector supplies energy is nothing to write home about. How do you encourage the youth who are entrepreneurs, women who are self-employed? The government should please find a lasting solution to power supply problem so that we can have constant power supply. On the contrary, government should not ban small generating sets in Nigeria. Happiness Aduku +2348109842480

Okota residents seek Ambode’s assistance

I want to use this medium to personally appeal to Governor Akinwunmi Ambode to help the people of Ago in Okota Isolo and all others who suffer daily on this Okota-Isolo Road, to fix this particular road for us. After 16 years of Governors Tinubu and Fashlola, we will be very happy if he will show us a little love by fixing the road. We will appreciate it if Ambode will break the jinx on that all -important link road and open the area

to ease traffic at Cele and increase commercial activities along the area. The governor should not allow us to suffer till few months to next election before he comes to fix the road ahead of another campaign. Nick Oguaju writes from Okota, Lagos+2347053759669

Muslim leaders and role to end insurgency

It is becoming clearer by the day that Nigeria’s war on terror cannot be won with military force alone. I honestly think that our Muslim leaders have important roles to play if this war must be won. Shekau’s statements contained in the video clip proved it beyond doubt that he does not know enough about Islam as he claims. Muslim leaders should try and re-educate Nigerian Muslim youths to enable them resist the radical teachings of the likes of Shekau. Terrorism is on the rise in the developing world due to the fact that millions of jobless youths are being brainwashed by some radical halfbaked Islamic teachers who are taking advantage of their religious illiteracy. Muslim leaders should act now to stop this evil ideology. Bazakey 08060768946

Gov Oshiomhole and plight of Jagbe people

I wish to commend Comrade Adams Oshiomhole on his monumental achievements in Edo State and to implore him to give Jagbe people a parting gift by developing their roads. Jagbe and its environs have for decades been criminally neglected by past Edo state governments. I hope that the comrade governor will deem it neccesary to fulfil his election promise to Jagbe people by developing their roads. Needless to mention that qualified Jagbe people are never considered for appointments as if they are not part of Edo state and Etsako West in particular. Ismael B Mohammed.+2348085541501

Fuel scarcity

Why is there fuel scaricity in Nigeria despite the fact that we are blessed with crude oil? The Department for Petroleum Resources should be held responsible for the fuel scarcity because they are not doing their job as it ought to be. The Federal government should please act fast. Feyisetan Akeeb Kareem, Delta State. +2348098245620

SAYINGS OF OUR ELDERS I have sown a riga without a neck. Let him who cuts a neck for it put it on. - Hausa proverb

Send us your Sayings of Our Elders. They must be African sayings or proverbs. Biblical or English proverbs are unacceptable. Address your sayings to: editor@vanguardngr.com

Vanguard, MONDAY, DECEMBER 21, 2015—59

By Francis Igata, Nwabueze Okonkwo & Ugochukwu Alaribe

ENSION IS building up in the South-East and parts of South-South geopolitical zones following the continued detention of the leader of Indigenous People of Biafra, IPOB, and Director, Radio Biafra, Nnamdi Kanu, who was, last Wednesday, discharged and acquitted by a Magistrate's Court in Abuja of the treason charge preferred on him by the Department of State Security Services, DSS. It will be recalled that Justice Ademola Adeniyi of a Federal High Court, also in Abuja, had, last Thursday, ordered Kanu’s immediate release from DSS detention. Nnamdi was arrested on October 17, by DSS operatives, shortly after he arrived Nigeria from his base in the United Kingdom, which prompted over one month protests after he was arraigned secretly at Wuse 2 Magistrate's Court, which granted him bail on October 19. Meanwhile, the youth wing of Ohanaeze Ndigbo has warned that the continued detention of the leader Nnamdi Kanu by the DDS, against court order, could spell doom for Nigeria. The youth group under the banner of Ohanaeze Youth Council, OYC, expressed shock that four days after the Federal High Court, Abuja gave ordered Kanu’s unconditional release, the DSS had continued to hold him. Similarly, reactions have continued to trail last Thursday’s shooting and killing of five members of IPOB by the Joint Task Force, compromising Army and Navy stationed at the Bridgehead area of the commercial city of Onitsha, Anambra State, who were jubilating the court order for the release of Kanu. Among those who had so far reacted to the incident include the leader of Biafra Independence Movement, BIM, Chief Ralph Uwazuruike; the Ogirishi of Igboland, Chief Rommy Ezeonwuka, and other human rights groups. Nerves frayed as Kanu’s not released The leader of Movement for the Actualization of the State of Biafra, MASSOB, Uchenna Madu, has accused the DSS of deliberately continuing to detain Nnamdi Kanu against two court rulings ordering the security agency to release their leader unconditionally. “The continued detention of Nnamdi Kanu by DSS after both Magistrate, Federal High courts have discharged and acquitted him of all the frivolous charges against him shows that Nigerian judiciary is not independent. The independency of the three arms of government is a complete sham, which portrays Nigeria as an undemocratic state. “It is a sign of frustration on Nigeria because of Nnamdi

FRESH CHARGES AGAINST KANU: MASSOB

accuses DSS ...vows to continue protests •Kanu’s detention may mar Nigeria —Ohanaeze •Reactions trail killing of jubilating IPOB members in Onitsha •Uwazuruike converts MASSOB to BIM youth wing, appoints 3 key officers

MASS: From left, Chief Willie Obiano, Governor of Anambra State; Chief Ebelechukwu Obiano, his wife; Dr. Nkem Okeke, Deputy Governor, and Hon. Rita Maduagwu, Speaker, Anambra State House of Assembly, during the Special Thanksgiving Mass to close the year, at the Gech Auditorium, Aguleri, weekend. Kanu, agitators for Biafra represents the very truth Nigeria knows but always avoids to identify with it. I know Nnamdi Kanu. He is a real Biafran, who can never succumb to intimidation, deviate or compromise. “His illegal detention will worsen the already battered image of Nigeria. MAASOB will never relent in identifying with Nnamdi Kanu. We shall continue to press for his release with every legitimate action supported, backed by internationally recongised law, decrees and charters. MASSOB must maintain our non-violent stance, although we have found out that the DSS wants to re-arraign him on fresh trumped-up charges which we will resist, “MASSOB leader warned. Kanu’s detention may mar Nigeria —Ohanaeze The Youth Wing of Ohanaeze Ndigbo in a statement by its National President of OYC, Mazi Okechukwu Isiguzoro, condemned the attitude of the DSS over the detained Biafra activist. “Nigeria is sitting on the looming danger of renewed protests by Kanu’s followers, sympathisers and Biafra agitators is capable of consuming Nigeria and should be avoided. For us, Ohanaeze Youth Council, we are pleading with the Federal Government to, as a matter of sacrifice for the unity of Nigeria, release Nnamdi Kanu. “This call has become necessary because it will be extremely difficult for us to continue to calm his followers and sympathizers whose see his detention as a

provocation. We know how much effort it took us to prevail on IPOB and MASSOB members to stop their protests before the court ruling, and we don’t know what to tell them again as Kanu is still in detention four days after he was discharge by a court of competent jurisdiction. “President Muhammadu Buhari should help save the country from unnecessary tension by prevailing on the DSS to release Kanu since the courts have discharged and acquitted him. "OYC also called on the international community to intervene and save Nigeria from plunging into another avoidable civil disturbance instead of coming with aids to refugee camps." The youth group appealed to Buhari, to prevail on the DSS to free the detained IPOB leader in the interest of peace. Ohanaeze, also appealed to Biafra agitators and Igbo youths to remain calm as efforts were being intensified to secure freedom for Kanu. Reactions trail killing of jubilating IPOB members Meanwhile, reacting to Kanu’s continued detention, Uwazuruike condemned the killing of unarmed civilians by the soldiers, adding that even if the jubilators blocked the road, it should not have been enough excuse to open fire and kill them. “After all, if the DSS had released Kanu since the Magistrate's Court gave an order to do so, these orgy of protests would not have arisen in the first place. Ndigbo would henceforth, no longer tolerate indiscriminate

shooting and wasting of human lives here in Igbo land by triggerhappy security agencies.” The Biafran Independence Movement, BIM, leader wondered why the soldiers used live bullets on the crowd instead of using rubber bullets or even tear-gas canisters to scare the jubilators if at all they blocked the road. Reacting to the development, Chief Ezeonwuka, who spoke to newsmen at the scene of the incident, also condemned the shooting and killing of unarmed persons with live bullets, adding that on the other hand, if it was true that the jubilators had blocked the roads, it was not proper. “We don’t want shedding of blood here in Igbo land any longer and we don’t want more protests too. What are they protesting about and who are they shooting at? There is nothing to warrant shooting or protesting, particularly now that Nnamdi Kanu has been released by the court.” Chairman of South East zone of Campaign for Democracy, CD, Uzor A. Uzor, called on the government to set up a panel of inquiry to investigate the shooting and punish the culprits accordingly. Also reacting, the International Society for Civil Liberties and the Rule of Law, Intersociety said, in a statement, yesterday, that the Commander of the Onitsha Military Cantonment and his Chief of Army Staff, COAS as well as the government of Anambra State, should be held fully responsible for the death, injuries and whereabouts of some missing citizens and the murdered IPOB members.

The statement by its chairman, Emeka Umeagbalasi, Intersociety said: “We have it on good authority that four to eight dead victims and 13 critically injured members of the public, who were shot dead and critically injured by the soldiers of the Onitsha Military Cantonment in the evening of December 17, 2015, at the Ojukwu Gateway, Onitsha Niger Bridge-head, have been taken away to unknown destination by soldiers of the Cantonment. “The soldiers after perpetrating the heinous act at the Niger Bridgehead between 2p.m., and 3.30p.m., stormed the Multicare Hospital, on Limca Road, Nkpor, Anambra State, between 8p.m., and 9p.m., and abducted 13 critically injured citizens brought for treatment. "The four dead citizens were also said to have earlier been taken away by the soldiers from the scene of the shooting. Till this moment, their whereabouts have remained unknown.” Uwazuruike converts MASSOB to BIM youth wing Meanwhile, in his bid to exert his authority and ensure that charlatans do not infiltrate MASSOB, its founder and leader of BIM, Chief Ralph Uwazuruike, has converted MASSOB into youth wing of BIM. Uwazuruike said with its inauguration and appointment of its key officers, MASSOB, has been restructured and strengthened to continue with the non-violent struggle in the revalidation of a Biafran statehood. A statement, yesterday, by BIM’s Deputy Director of Information, Mazi Chris Mocha, quoted Uwazuuruike as saying that before one could be admitted into the hierarchy of BIM, such an officer must have worked for MASSOB which is BIM’s youthwing for at least, five years and above to be able to understand the principles of non-violence in the Biafra struggle. The statement recalled the Biafran leader, Uwazuruike had at an enlarged special meeting of BIM/MASSOB, attended by Biafran elders-in-council, Biafran zonal leaders, Biafran regional administrators and directors, named Chief Solomon Chukwu as the leader of MASSOB, the youth wing of BIM, while Mr. Sunny Okereafor and Great Agomo were named as MASSOB National Director for Information and MASSOB National Director for Seminar, respectively.

60 — Vanguard, MONDAY, DECEMBER 21, 2015 YOUR LUCK TODAY

LEISURE

By Joshua Adeyemo Phone 08056180139 GEMINI: Your creativity quotient within your working arena will today be enhanced. You’ll be blamed if you keep official issues secrets from your challenges at work. CANCER: After a few tension soaked days, you’ll have the needed opportunity to look through windows of the world and have your way as well. Magnetic and/or magic days is predicted for lovers today. LEO: Even if you continue to work under pressure via increased workload, you will have good results to show for your efforts today. Be steadfast. VIRGO: Better than yesterday. And the more cooperative you are today the better for you. Those of you travelling for love are in for an exciting day. LIBRA: Those of you willing to let go hard feelings at work are for a progressive day to the betterment of your finances. Let go yesterday, move ahead. SCORPIO: Once again, you’ll have the needed opportunity to assert yourself to the administration of others. Both love and financial success can be yours with efforts. Reason with your tried and trusted friends.

THOUGHT FOR TODA Y TODAY By Richard Eromosele

IGHT from ages man has continued to look for ways of clothing his nakedness. Nakedness does not just mean not wearing clothes alone. It includes covering our evil

God is watching deeds, wicked acts, ways and sins etc. As it was in the days of the biblical Adam and Eve, so it is today. When we commit heinous crime, we run for cov-

TERROR MUDA

er under the stone, under the water and under the dark, hoping and praying that we will not be caught. We live a life. We forget that air bear witness to our cruel

in “Never say goodbye”

act; the sun by our shadow takes our photograph, and our conscience convicts us daily. Beware, God is watching. Your sins will find you out.

Think about it!

By Lanre Kehinde

SAGITTARIUS: You can make it a successful day with positive approach on your part. You will be in a better position to defuse tension within your working arena. Try to be more ambitious. CAPRICORN Yes! You’re not scared a bit even, when opposition and/or competition come your way but, if you give in to diplomatic approach, you’ll fare better today. AQUARIUS: Pressure that came your way suddenly will give way unexpectedly, today, to the betterment of your course. The more financially ambitious you are today, the better for you. Be steadfast. PISCES: You sincerely believe in intelligent argument or discussion. And if you allow your ability to be diplomatic come to play today, you’ll be better for it. Enjoy your love life. ARIES: You’ll tend to become both creative and persuasive to the administration of others. Then those who’ve been resisting secret love may slip suddenly and become excited. TAURUS: Even if opposition persists, supports you are getting from the influential people will be enough to see you through. Yet, the more cooperative you are the better.

KAPTAIN AFRIKA

“Pretty Lunatic’

By Andy Akman

ASTROLOGICAL COUNSELLING Send yyour our dat th ttoo the As tr ological datee and place of bir birth Astr trological Counselling, PP.M.B .M.B 1100 00 7, Apapa, Lagos 007,

What’s my day?

Dear Joshua, According to the date I was born I should be a Libran by my star but most of the time when I read horoscopes written by both yourself and foreign Astrologers Scorpio always applicable to me, why?Kindly tell me how the planets lined up when I was born and the day of the week I was born but don’t publish my date of birth. Bode, Mina. Dear Bode, You were born on a Sunday. You were wrong to have taken Libra as your Sun sign because the Sun was placed in early degree of Scorpio together with many other heavenly bodies. Then with the Moon in Libra when you were born will equally be influential in your characteristics build up but, you are mainly a Scorpio born person YOUR HOROSCOPE DATA Day of Birth = Sunday Sun Sign = Scorpio. Sun in Zero Degree of Scorpio Moon Sign = Libra: Moon in 5th Degree of Libra Mercury in 12th Degree of Scorpio Venus in Zero Degree of Sagittarius Mars in 1st Degree of Aquarius Jupiter in 29th Degree of Cancer Saturn in 10th Degree of Scorpio Uranus in 27th Degree of Cancer Neptune in 25th Degree of Libra Pluto in 26th Degree of Leo North Node in 8th Degree of Capricorn South Node in 8th Degree of Cancer No planet in earth spar sign, one in available, two in fire, three in air, four in cardinal, fixed and water star signs hosted five planets each. PHYSICAL INFLUENCE = 50% NON-PHYSICAL INFLUENCE =50% PLANET AT HOME = NONE ANALYSIS OF THE HOROSCOPE DATA You are both an intelligent and emotional person. And as there was planet at home when you were born, too many ideas will always struggle for prominent place in your mind, thus decision making is difficult but most times, your intelligence comes to the rescue. Certainly, you appear to other as a gentle person who can be mistaken for soft fellow but your inner-self is the personality with a steel like will power. You are the consistent type who may find it difficult to change once you have made up your mind as indicated by distribution of the planets as written out in paragraph two of this exercise. One major challenge you have been battling for a very long time is constant worries, some times, necessarily and the other time, uncalled for, as indicated by conjunction Mercury and Saturn formed when you were born. Placement of your natal Sun (basic self head) and Moon (your sub-conscious self) in Scorpio and Libra respectively are indications of your being mainly Scorpio born person and partly in Libran. And that is to say basic characteristics of both Scorpio and Libra are highly pronounced in you. Then, you are spiritually gifted; if you don’t develop it is another thing.

VIRGINIA

HOME & ABROAD

dadadekola@yahoo.com

By Lawrence Akapa

Vanguard, MONDAY, DECEMBER 21, 2015—61

Bayern confirm Guardiola’s exit, welcomes Ancelotti P

EP Guardiola is to leave Bayern Munich at the end of the season and will be replaced by Carlo Ancelotti, the German champions have confirmed. The 44-year-old, who has been persistently linked with Manchester City, Manchester United, Chelsea and Arsenal, has won two league titles and the German Cup since joining Bayern in 2013. Former Chelsea, AC Milan and Real Madrid manager Ancelotti will replace Guardiola at the end of the current campaign. Bayern’s CEO KarlHeinz Rummenigge told Bild: “We are thankful to Guardiola for all he gave our club and hope to celebrate more success in the current season. “With Ancelotti we have another very successful coach coming to Bayer n. We are looking forward to working together.” “Carlo has enjoyed success everywhere as a coach and has won the Champions League three times,” continued Rummenigge. “He is a calm, balanced expert, who knows how to deal with stars and favours a multifaceted style of play – we were looking for this, and we have found it.” The news had been expected, but Bayern confirmed further details including the length of Ancelotti’s contract, which will run until 2019. The Italian tweeted his reaction to the news, saying it is “an honour to become part of this great club” and that when he knew of Bayern’s interest he “didn’t want to consider any other offer. continued from B/P on the clock, a swinging corner fell into the hands of Bogdan, who was deputising for the injured Simon Mignolet, but he dropped the ball into the path of Ake - on-loan from Chelsea - who prodded home his first Premier League goal. However, replays showed that Bogdan may have had both hands on the ball at the time of Ake’s strike. Watford then made it 20 when Troy Deeney played an excellent ball

•CELEBRATION...Super Sand Eagles’ players celebrate after their victory against England

FCMB excites fans as COPA Lagos ends

IRST City Monument Bank (FCMB) Limited has restated its commitment to support initiatives geared towards youths, sports and overall national development. The assurance was given by the Group Managing Director/Chief Executive of the Bank, Mr. Ladi Balogun, during the closing ceremony of this year ’s COPA Lagos Beach Soccer tournament on December 20, 2015. The tournament, organised by Kinetic Sports Limited and sponsored by the financial institution for the fifth consecutive year, took place from December 18 to 20, 2015 at Eko Atlantic Beach, Victoria Island, Lagos. Defending Champ-ions, Cote d’Ivoire won the trophy yesterday. The tournament featured the national beach soccer

NIKE brings quality products to Nigerian athletes

OP kits manufacturing outfit, NIKE, is out to take care of women and professional athletes as the body opened a new outlet on Friday in Lekki. NIKE General Manager, Mike Brown, said during the inauguration of the new outlet at Lekki Mall that the outfit was all out to satisfy the needs of customers. Brown said it was important to increase the level of women kits from 20 per cent to 50 percent in all parts of the world. “We have the same objective all over our outlets globally. The prices are the same and the quality are also the same. What you see in New York, South Africa, Cairo and the UK are the same with what we have in Lagos and all over Nigeria. We want to get closer to the people and after our study, we realised we should boost the kits for female outlets

Ighalo through to Ighalo, who muscled off Martin Skrtel and fired the ball into the bottom-right corner of Bogdan’s goal - his 27th league goal of 2015. With five minutes remaining, Deeney fed the ball through to substitute Behrami, and the Swiss international composed himself and delivered a super ball onto the head of the inform Ighalo, who nodded past a sprawling Bogdan to secure an excellent win.

all over the world,” Brown said. The NIKE outfit at the Palms Mall has various segments for customers. They are tagged “To Run,” ‘’To Live” and “To Train.” The ones for running and training are for athletes to pick for various degrees of their

professional needs while the ones tagged “To live” are casual wears. NIKE Brand Manager, Jumoke Adekunle, also noted that the outlet in Ikeja Mall would soon be upgraded to the standard of the new one in Lekki. Adekunle stressed that NIKE was not new in

Nigeria but only decided recently to get closer to its consumers worldwide. “We are not bothered about counterfeits but we always appeal to our customers to buy products from designated outlets and not just anywhere,” she said.

teams of Nigeria, England, Cote D’ivoire and Lebanon. The Beach soccer teams of Barcelona Football Club of Spain, Kano Pillars, Shooting Stars Sports Club and Pepsi Academy; all of Nigeria, also participated in the highly colourful and entertaining 3-day soccer fiesta. Koblan Assouan was voted as the Most Valuable Player of the tournament. According to Mr. Balogun, the Bank’s interventions in the area of sports are aimed at developing the minds, body and abilities of the populace, especially youths, to contribute significantly to the growth of the country. Apart from the excitement which FCMB built around the football matches, the Bank also treated guests and customers that attended the fiesta to a VIP treatment at its hospitality lounge. Guests and spectators were also provided with opportunity to experience the unique banking services of FCMB as the sales team of the Bank was on ground to showcase its array of valued-added products and services.

Court restrains Gabros from interfering with FC Ifeanyiubah By Jude Opara, Abuja

S the confusion over the acquisition of defunct Gabros Utd FC of Nnewi by business mogul, Chief Ifeanyi Ubah continues, a High Court of the Federal Capital Territory (FCT) last Friday restrained Chief Gabriel Chukwuma from interfering with the operations of FC Ifeanyi Ubah as a football club and its participation in the elite Nigeria Professional Football League (NPFL). Remember that Chief Gabriel Chukwuma who sold Gabros Utd as well as its stadium to Chief Ifeanyi Ubah recently claimed that he has retaken possession of the club and was making arrangements to take part in the forthcoming 2015/ 16 football season. The court presided over by Justice Valentine Ashi had restrained Chief Chukwuma, his agents, servants, privies by whatever name called and howsoever described from interfering, impeding,

obstructing or otherwise disturbing the plaintiffs (Dr Ubah and FC Ifeanyi Ubah) in their exclusive use of the Club’s football stadium pending the hearing and determination of the substantive suit. The petitioners had through their Counsel Babalola Akinwunmi asked the Court for an order restraining the defendant, Chief Chukwuma from interfering with or impeding with their rights to operate as a football

club and to participate in the Nigerian football league or other relevant football activities within or outside Nigeria pending the hearing and determination of the suit. They equally sought for an interlocutory order restraining the defendant, his agents, servants, privies and whatsoever from interfering, impeding, obstructing or otherwise disturbing the plaintiffs in the exclusive use of the club’s stadium pending the hearing and

•Ifeanyi Ubah determination of the suit. The court has fixed definite hearing on the substantive suit for March 1st, 2016.

Gov. Ambode doubles Gov’s Cup Tennis prize money By John Egbokhan

N a ground-breaking move, the Lagos State Governor, Akinwunmi Ambode has increased the prize money of Governor’s Cup Futures I and II by twice its previous amount. Disclosing this during the closing ceremony of tournament at the Lagos Lawn Tennis Club,

Onikan, Governor Ambode said that it was in line with his administration’s objective to engender players’ development and put Lagos in the international limelight all year round. Currently, the men’s tournament, which comes with hospitality is a $15, 000 event while the women’s, without hospitality is $25, 000.

Both run for two weeks, making it an $80, 000 tournament. When increased, it comes to $160, 000. This is the first time that the tournament, which served off in 2000, will be witnessing a significant rise in prize money and the attendant upgrading to an ATP event, which will both be implemented in next year’s edition.

62 — Vanguard, MONDAY, DECEMBER 21, 2015

Barca win Club World Cup B

ARCELONA end 2015 with five trophies as goals from Lionel Messi and Luis Suarez delivered a 3-0 victory over River Plate in the Club World Cup on Sunday. The Copa Libertadores holders failed to keep La Blaugrana at bay for too much longer, although they initially had goalkeeper Marcelo Barovero to thank after he somehow denied Messi from point-blank range and tipped a free kick from his countryman wide. However, the custodian could do nothing about Barca’s opener as Dani Alves’ hanging cross was knocked down by Neymar

in the box for Messi, who then allowed the ball to roll across him, before volleying a finish home for his third goal in as many Club World Cup finals. The restart saw Barca take control of the game, scoring their second just nine minutes in as Sergio Busquets visionary through ball released Suarez, who made no mistake about his finish, which he squeezed through Baroveros legs. The victory was then sealed with little over 20 minutes remaining as Neymar proceeded to win his duel with Gabriel Mercado, bending a pinpoint cross onto the head of Suarez, who effortlessly guided his header home.

EP Guardiola will leave Bayern Munich at the end of the season to be replaced by Carlo Ancelotti, club CEO KarlHeinz Rummenigge has confirmed. The former Barcelona manager’s deal expires at the end of the campaign after two and a half seasons in which he has led the Bavarian giants to two Bundesliga titles and consecutive Champions League semi-finals. Ancelotti’s new deal will last three years and comes after he spent a year on sabbatical following his sacking by Real Madrid last summer. Rummenigge told Bild: “We are grateful to Guardiola for everything he has given our club and hope that we will celebrate many successes this season.

Pogba: Juve made mistakes against Carpi

AUL Pogba concedes Juventus “made life difficult for ourselves” in the tense 3-2 victory over Carpi. “We are all very happy for the fundamental and deserved victory, even if we made life difficult for ourselves at the end,” Pogba told Sky Sport Italia. “That must absolutely not happen again. Now we have a break for Christmas, but when we get back on the field we must do it with humility and the awareness we’ve done nothing yet. It is still a very long journey. “Who do I dedicate the goal to? Myself, as I am aware that I can give more to help the team win another Scudetto.” S

Pogba

Ancelotti to replace Guardiola at Bayern

Suarez

Madrid record la decima against Vallecano R

EAL Madrid capitalised on two early red cards to hit double digits in a 10-2 annihilation of Rayo Vallecano in La Liga yesterday. Madrid took the lead inside just three minutes as Danilo finished off a sweeping counterattack, but they were soon shellshocked, when former Wigan Athletic defender Antonio Amaya powered home a free header past Keylor Navas. Lightning then struck twice, Jozabed taking advantage of yet more dismal Madrid defender with another header. Rayo were dreaming, having lost their last 14 meetings with Los Blancos, but they would throw it all away. The turning point came when Tito was shown a straight red card for a terrible lunge on Kroos, which risked breaking the midfielder ’s leg, and Gareth Bale promptly flung himself onto the end of Danilo’s cross for the equaliser. Rayo’s afternoon then went from bad to worse as Raul Baena was given his marching orders for a second bookable offence on Sergio Ramos after he appeared to pull back the defender in the box. Up stepped Cristiano Ronaldo, who converted the penalty.

Guardiola

Ancelotti “With Ancelotti we again will have a very successful coach for FC Bayern.” Ancelotti added: “I am very honoured that I will be coach of the great club FC Bayern from next season.”

Hiddink to bring Drogba back to Chelsea

Hiddink (l) and Drogba

Bale (c) jumps to head the ball against Valncano

UUS Hiddink has confirmed that he would like club legendDidier Drogba to join him in the Chelsea backroom staff. Hiddink, 69, will be in the dugout for the Boxing Day match against in-form Watford after agreeing to return to Chelsea for a second spell as an interim manager. Drogba was one of the

key men at the club during Hiddink’s first spell in 2009, when Chelsea recovered from a disastrous start to the season to qualify for the Champions League and win the FA Cup. “I’d be happy to have him here,” Hiddink said. “At the moment he is still attached to his contract in Canada. But it is intended that he’s involved.”

Foreigners rule Gov’s Cup Futures II By John Egbokhan

HE final matches of the Governor ’s Cup Lagos Tennis Futures II were played weekend with two foreigners, Antal Van Der Duim of

Holland and Conny Perrin of Switzerland winning the men’s and women’s singles titles respectively. Perrin defeated Tadeja Majeric in three thrilling

sets, 6-3, 4-6, 7-6 to lift the women’s crown, while Van Der Duim won a repeat of Futures 3 quarter final match, defeating Zimbabwe’s Takanyi Garangaga 6-3, 7-6 to land the title.

In the media exhibition game played earlier in the day, Fred Edoreh, chairman of Lagos SWAN, defeated Ganiyu Salman of Nigeria Tribune in straight set of 6-1, 6-3.

Vanguard, MONDAY, DECEMBER 21 , 2015 — 63

C M Y K

Vanguard, MONDAY, DECEMBER 21, 2015

Barca win Club 2 .6 P — World Cup Real Madrid blow-out Rayo Vallecano 10-2 .62 —P

Club Kings...Barcelona forward Andres Iniesta, forward Lionel Messi, forward Neymar and forward Luis Suarez celebrates with his team-mates around the FIFA Club World Cup trophy on the podium of the Club World Cup football tournament final in Yokohama. Photo AFP •Ighalo •Bale

Bayern confirm Guardiola’s .61 exit, welcomes Ancelotti —P

Ighalo sinks Liverpool O

DION Ighalo scored twice as Watford recorded a comfortable 3-0 victory over Liverpool at Vicarage Road yesterday.

Nathan Ake made the most of an Adam Bogdan howler to open the scoring at Vicarage Road, before Ighalo doubled Watford’s lead

after just 15 minutes. The Nigerian striker then doubled his tally for the game after nodding in Valon Behrami’s superb cross,

leaving Watford just one point off the Champions League places. With just three minutes

Continues on Page 61

•Ancelotti

•Guardiola

QUICK CR OSS WORD CROSS OSSWORD

T OD AY'S PUZZLE ODA

FRI DAY'S ANS WERS FRID ANSWERS

ACROSS 1 Perspire (5) 2 Lunge (6) 8 Penitent «5) 10 Middle (6) 11 Poke (4) 14 Consuming (6) 15 Discussed (7) 18 Through (3) 19 Barrier (3) 21 Adroit (4) 23 Dissuade (5) 24 Network (4) 27 Lair (3) 29 Summit (3) 31 Swung (7) 32 Lent (6) 34 Departed (4) 35 Amatory (6) 38 Tree (5) 39 Fiery (6) 40 Coin (5)

DOWN 2 Sorrow (3) 3 Wrong (6) 4 Hill (3) (5) Sort (4) 6 Rebelled (6) 7 Objective (6) 9 Ebbed (7) 12 Knock (3) 13 Dreadful (4) 16 Relax (4) 17 Old-fashioned (5) 20 Threatened (7) 22 Repute (4) 24 Pester (6) 25 Deer (4) 26 Venerate (6) 28 Disregard (6) 30 Enclosure (3) 33 Deceased (4) 36 Material (3) 37 Tavern (3)

YESTERDAY'S SOLUTIONS ACROSS: 1, Select 5, Void 8, Organ 9, Rob 10. Nude 11, Clan 12, Essay 13, Abroad 16, Sign 18, Cram 20, Ate 22, Lot 23, Yen 24, Pier 25, Item 28, Divert 30. Screw 32, Root 33, Near 34, Van 35, Fence 36, Load 37, Bridge.

DOWN: 1, Spread 2, Liberate 3, Canvas 4, Presented 5, Vacancy 6, Only 7, Dune 8, Ode 14, Diligence 15, Man 17, Got 19, Reserved 20, Aim 21, Erected 26, Mirror 27, Stance 29, Oral 30, Sofa 31, Wee.

How to Play Sudoku

lace a number (1-9) in each blank cell. (No line can have two of the same number). Each row (nine lines from left to right), column, (also nine lines from top to bottom) and 3 X 3 block within a bold block (nine blocks) contains number from 1 through 9. This means that no number can appear twice in any block, column or row. No mathematics is involved – no adding, subtraction, division or multiplication, just plain logic and your imagination. Printed and Published by VANGUARD MEDIA LIMITED, Vanguard Avenue, Kirikiri Canal, P.M.B.1007, Apapa. Phone: Newsroom: 018773962. Deputy Editor: 01-4548355. Advert Dept Hotline: 014544821. Abuja Advert Hotline: 09-2921024. E-mail: editor@vanguardngr.com, news@vanguardngr.com, letters@vanguardngr.com. Advert:advertproduction@yahoo.com Website: www.vanguardngr.com (ISSN 0794-652X) Editor: MIDENO BAYAGBON. Phone: 01-7742861, All correspondence to P.M.B. 1007, Apapa Lagos.

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