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Spaces for Change-S4C Volume 6 | January – February 2013 | Nigeria | West Africa A Newsletter of Spaces for Youth Development and Social Change

In This Issue:

from the editor’s desk Happy New Year!

OSLEAP Kicks off

We should perhaps, rename January and February, the Months of PIB! Over the next two months, we will dedicate time, energy and resources on stakeholder mobilization, legislative engagement and intense campaign for the passage of the Petroleum Industry Bill (PIB). The activities we have lined up for implementation in these two months are very important because they will largely determine the direction of the organization’s future work in this field of advocacy and also, help to consolidate several months of online conferences and web-based facilitations around the much-needed oil sector reforms.

Taking Environmental Protection and Community Participation More Seriously

What is a Host Community?

Along these lines, an in-depth research work and policy analysis of the PIB provisions relating to community participation and the environment has already begun. The production of another booklet containing concise answers to frequently asked questions (FAQs) about the PIB is currently underway. The policy briefs and reports generated from the above activities will lead to the production of extensive publicly available data on the Bill. They will further add to the growing list of oil and gas and energy-focused resource materials on S4C E:Library (http://issuu.com/spaces.for.change/docs/ ) where a wide range of online users have unrestrained access to materials, reports, analytical papers and documentation on the PIB. Our E:Library will continue to offer a rich repository for policy makers, the media, non-governmental organizations, community associations, with the aim of bolstering their capacity to contribute to making the Bill’s legislative processes more robust and effective. We will capitalize on the organization’s strong online presence on the social media to disseminate these publications and expand the reach of our target audiences. While the last year was indeed, exciting for us in all aspects, the many research and public advocacy activities lined up for the year are just the beginning of our expansion plan. In short, we are sure that the future is even brighter than we can ever imagine. May it be celebrated! Happy reading! Victoria Ohaeri Executive Director

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Towards Greater Community Participation in the Oil and Gas Industry

Should Artisanal Refining be Legalized: Young Nigerians Speak Glimmering Hope for Justice in a Gruesome Murder Case

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OSLEAP KICKS OFF Spaces for Change (S4C) has commenced the implementation of the Oil Sector Legislative and Accountability Project (OSLEAP), with support from Open Society Initiative for West Africa (OSIWA).The overall goal of this project is to create inclusive spaces for major stakeholders to engage on issues affecting the environment and community participation in the new draft of the Petroleum Industry Bill (PIB). Mainly through research, advocacy, community education and legislative engagement, the project will implement a range of strategic activities aimed at mobilizing and organizing the voice of key stakeholders, especially oil producing communities in the Niger Delta to actively participate, engage and monitor the legislative processes preceding the passage of the Bill. To begin with, S4C will facilitate consultative meetings with the civil society and key players in both the environment sector and the oil and gas industry to introduce the project to them, and secure their commitment to support the range of proposed activities lined up for implementation. To embed collaborative problem problem-solving and best practice-remodeling in programming, the project will support networking activities between relevant actors working on oil sector transparency and environmental justice issues to ensure the project coalesces, contributes to, and draws from other official and civil society interventions on the PIB. A PIB Advocacy Working Group will be constituted to provide necessary energy and competence to drive the advocacy for the passage of the Bill, and to particularly ensure that that major demands by oil producing communities and other stakeholders for environmental protection and community participation are adequately addressed in the new PIB. Members of the Working Group will mainly be enlisted from among the participants at these deliberative engagements. This Group will monitor, review and recommend actions throughout the legislative processes. It will make contacts where necessary to important actors in the Parliament and other non-state actors working on the PIB. Coordinating the implementation of this project is S4C‟s highly-experienced staff comprising lawyers, policy analysts and environmentalists. They will be assisted by a team of consultants, researchers, including a host of offline and online youth volunteers drawn from its fast-growing online network of over 2,500 members. In addition to S4C‟s strong online presence, the project will further benefit from S4C‟s track record in policy analysis, crowd sourcing data, stakeholder engagement and proficient usage of internet-based tools. “The project’s goal of increasing the participation of oil producing communities in the oil and gas sector, as well as promoting environmental sustainability in the areas where oil exploration and production take place, is one remarkable aspect of this project, which we are proud of”, says Atim Ekemini Uba, S4C „s legal advisor. PIB: Taking Environmental Protection and Community Participation More Seriously January 2013 marked the beginning of a robust research and analytical study on the Petroleum Industry Bill‟s (PIB‟s) provisions on community participation and the environment. The detailed analytical study forms part of Spaces for Change‟s (S4C‟s) broader efforts to generate extensively publicly available data that will facilitate informed debate amongst a broad range of agents – advocates, legislators, representatives of the oil and gas industry, different tiers of government, regulators, non-governmental organizations, oil

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producing communities and other stakeholders – towards making the Bill‟s legislative processes more robust and effective. Preparations began with a rigorous desk review involving a team of researchers – lawyers, engineers, energy analysts and community advocates. This first stream involved examining a variety of legal standards, policy frameworks and guidelines relating to resource management, community participation and the environment (CPE) provisions in the PIB. Secondary literature was also taken into account within a comprehensive assessment on the context and nature of the development interventions designed to address aspects of the environmental challenges faced by oil-producing communities in Nigeria. Sources included media reports, independent research publications, books, and government documents. The second stream sought to engage a wider spectrum of contributors from diverse professional backgrounds, the civil society and industry experts. To this end, social media, crowd-sourcing and webbased communication tools were employed to generate reflections and encourage collective input. An econference held on the Saturday, July 14, 2012, led by five industry experts comprising oil policy analysts, multinational representatives, a labour leader and environmental justice advocates unpacked a variety of pressing environmental concerns and transparency issues affecting the PIB. The conference had a global reach, with participation recorded mainly from 11 countries across six continents: Nigeria, United Kingdom, United States, Russia, Austria, Germany, Canada, Cyprus, Ukraine, France, Malaysia and Ghana. Despite being among the world‟s top oil producers, Nigeria‟s oil and gas industry has been plagued by institutionalized corruption, corporate impunity, and grave environmental and humanitarian devastations. At the root of the rot in Nigeria‟s oil industry is the absence of a coherent legal and policy framework for holding operators accountable and for addressing serious violations of environmental standards, forcing aggrieved persons and communities to resort to extra-legal and violent confrontations. The Niger Delta, home to Nigeria‟s mineral oil resources and abundant gas reserves, remains one of the poorest and least-developed parts of the country. Local communities suffer from oppressive levels of poverty, infrastructural decay, and environmental degradation, which have in turn precipitated rising ethnic tensions and escalating violence among competing militia groups. Constant oil spills, gas flares, blow-outs and leaks affect networked water bodies with spiraling effects on the local ecosystem. If passed into law, the PIB could improve governance of the environment and strengthen the structure for community participation in the oil and gas industry. The new reform bill lays out basic provisions to check unsafe operations, ensure land remediation and compensation to oil producing communities affected by oil industry operations. The paucity of reliable analytical and statistical data and the inability to use available data optimally to enhance the quality of legislative deliberations stalled a major legislative attempt to have the PIB passed in 2009. So beyond analyzing and critically reviewing specific provisions that could potentially undermine

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community participation and environment protection, S4C‟s research evaluates their coherence with global best practices and standards on environmental sustainability and participatory development, while recommending actions for further legislative engagement Strengthening these critical provisions is of utmost importance to secure maximum support for the proposed reforms and avoid unwanted consequences that stifle productivity, economic growth and social cohesion. When concluded, the study will also offer a rich resource book for training community and youth leaders to manage information, communicate and conduct negotiations on issues of concern to their communities. What is a Host Community? Several provisions of the Petroleum Industry Bill (PIB) make reference to host communities, especially 116 – 118, establishing the Petroleum Host Community Fund (PHC) Fund. However, there is no clear definition of the highly loaded term, “host community”. The interpretative section of the Bill (S. 362) provides little or no real guidance on the definition of “host communities”, nor does it indicate which groups or settlements qualify for this status and the criteria for that selection. What, then, is a host community? Who and who should benefit from the 10 per cent of all oil and gas earnings reserved for the oil producing areas through the Petroleum Host Community Fund (PHC) created by the new oil regime? What features should a community have to earn the title of a “host community”? In what way(s) would the Fund benefit the host communities? It was on the above premise that Spaces for Change (S4C), with support from the Open Society Initiative for West Africa (OSIWA) organized a Stakeholders‟ Roundtable on January 22, 2013 to forge mutuality in the exploration of answers to the identified gaps in the oil reform bill. The roundtable offered important feedback and contributions from oil and gas experts, civil society leaders, legal practitioners, media executives, former senior executives of international oil companies and representatives of oil-producing communities. According to S4C‟s executive director, Victoria Ibezim-Ohaeri, “the initiative was convened with the hope that the proffered recommendations would enrich the parliamentary debate and decisions affecting host communities”. Parliamentary deliberations on the PIB reveal that the PHC Fund and other provisions related to community development and environmental sustainability have been subjects of intense controversy among Nigerian lawmakers. Leading the opposition to the PHC Fund‟s establishment are northern lawmakers who insist the Niger Delta is already benefitting from a plethora of similarly-crafted initiatives aimed at facilitating the rapid and sustainable development of the region. Largely described as unfair, critics allege “an additional 10 per cent for oil producing states was one revenue stream too many as such states already enjoyed seven other special sources”. Therefore, introducing one more initiative – the PHC Fund – will confer undue economic advantage on oil producing states, predominantly in the Niger Delta region, to the detriment of other underdeveloped, less-endowed states in Nigeria. In strong disagreement with the typically northern position on the PHC Fund, an energy expert, Dr. Bala Zaka, and long-term employee for oil majors (including Shell) asked rhetorically, “If they oppose PHC Fund today, what would they do if oil is discovered in Borno and Sokoto tomorrow? Would they ask for the amendment of the PIB? Or start a new agitation against regional marginalization?” The respondent was of the opinion that the PIB is not about giving money to the Niger Delta, but about opening up the economy to

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opportunities that will benefit all the regions and all Nigerians. Emphasizing the link between community participation and security stability in industry operations, he argued that “the current PIB cannot become a law without selfless sacrifices, shifting of grounds, tolerant and accommodation of uncoordinated logics and sometimes, disgusting philosophies”. As the second presentation by an oil and gas legal analyst, Ikechukwu Ikeji elucidated, expunction of the PHC Fund will only breed further discontent and a feeling of marginalization – possibly leading to otherwise avoidable conflicts. The recent calls for the Fund to be expunged from the Bill have not been accompanied by an accurate analysis of the social, economic and environmental realities prevailing at source communities. In effect, “the PHC Fund should be retained considering the level of devastation endured by oil-bearing communities”. The third paper presentation by Celestine Akpobari, Programme Coordinator of Social Development Integrated Centre (Social Action), Port Harcourt, Rivers State detailed the woes of oil-bearing communities in the Niger Delta region where people reportedly drink water coated with as much as 8cm of oil. Most water wells are polluted. In Ogoni land for instance, the only light source in most of the Niger Delta communities at night are gas flares from oil installation sites nearby. Poor enforcement of regulatory standards has paved way for corporate impunity to flourish, as oil multinational companies operating in the region unceasingly act with scant regard for environmental safety and sustainability. One such oil major, the Shell Petroleum Development Company (SPDC)85 has been accused of devastating the ecosystem of the delta upon which Ogoni farmers and fishermen depend, through a combination of oil spills, forest clearance for pipelines and the burning of gas from oilwells known as gas flares. The continuing mismanagement of resources, coupled with the lack of effective processes for resolving the political, economic and security problems fuel doubts that the 10 percent reserved for oil-producing areas will ever trickle down to the devastated poor communities, but would rather provide a conduit pipe for thieving politicians to fatten their already-exploding bank accounts. Not only that, the PHC Fund, as currently constituted would pave way for a fratricidal war in the Niger Delta90. Much of the unrest operates on a logic that is already inseparable from how oil wealth is shared in the region. Unless the Fund‟s structure is better clarified and loopholes for embezzling funds are plugged, any new initiative designed for the benefit of Niger Delta communities could as well be a total waste of time. Restructuring of the Fund could take the form of a trust fund that empowers the oil producing communities as opposed to one that presents a fertile ground for more intense hostilities between communities. One way for the Fund to achieve the goal of empowerment is by turning into an Equity Participation Fund that allows named “host communities” to draw from or take revolving loans from the Fund for specific social and economic development projects. Despite the flurry of sharply-contrasting opinions and stimulating discussions about the PHC Fund, participants agreed on one basic fact: communities deserve a special attention – at least for the sake of the raw deal endured as a direct result of oil exploration and production activities. The structure and character of the attention granted to communities still needs to be worked out. In unison, participants rejected the discretionary powers of the president to grant oil licenses, recommending that that provision should be expunged from the bill. Likewise, the discretionary-permit granting for gas flares by the Petroleum Minister was roundly rejected, and recommended for expunction. There was not a single person in the room that did not agree that the powers of the minister under the PIB required review. Uncontrolled decision-making power is often prone to misuse and abuse, mainly because it is impossible to see into how decisions are

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arrived at and also disguises accountability. A strategic and sustained awareness creation on the PIB, including the sensitization of oil-producing communities about specific provisions of the Bill that would potentially impact on their welfare was another resolution that received overwhelming support by participants. A PIB Campaign Working Group, comprised of civil society leaders, industry experts, researchers, community advocates, policy analysts and media representatives, was constituted during the discussions, with a mandate to begin the groundwork and map out a strategy for driving a cohesive multi-stakeholder advocacy on the CPE provisions of the PIB. Going forward, the Working Group will work together to implement the roundtable resolutions, primarily driven to monitor, review and recommend advocacy actions throughout the legislative process. Towards Greater Community Participation in the Oil and Gas Industry For decades, the top-down administration of the oil sector has perpetuated social stratification and insecurity, undermining social cohesion, especially in oil producing communities. Recognizing that no safety net can fully replace the legitimacy and security provided by the inclusion of the critical voices of women, the youth and local communities in natural resource management, Spaces for Change (S4C) convened another stakeholder consultative forum in Port Harcourt, Rivers State to begin the process of building sustainable consensus for realizing greater community participation and environmental protection in the Petroleum Industry Bill (PIB). The event was held on February 25, 2013. Participants comprising mainly of civil society leaders, media executives, youth and women organizations and representatives of oil producing communities in the Niger Delta discussed in great detail, the critical provisions of the PIB that could potentially improve the regionâ€&#x;s quest for community participation and environment justice. Exclusion, poverty and environmental degradation in the Niger Delta region in particular, have persisted for decades due to the lack of adequate data and information on the basis of which oil-impacted communities and local advocates can meaningfully engage and negotiate issues that affect them. S4Câ€&#x;s latest draft report: PIB RESOURCE HANDBOOK containing an analysis of the provisions of PIB relating to community participation and environmental protection was presented to participants at the meeting. The draft report provoked robust discussions, critical reflections and thought-provoking questions mainly around the Bill participatory processes, the administrative structure of the Petroleum Host Community Fund (PHC) Fund, and the Billâ€&#x;s compatibility with other national legislations.

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At a community sensitization exercise held the following day, the draft report was presented to members of eight oil producing communities in Bori, Ogoni, Rivers State, Niger Delta, to seek their inputs into the report and cross-match research findings with experiences of oil producing communities. Thirty eight community representatives comprising traditional rulers, youth and women leaders learned about the key provisions of the Bill that they could rely on to effectively report and obtain compensation for oil pollution and the resulting environmental damage. After the two-day deliberations, the following observations and recommendations topped the list of priority issues: The sustainable development of oil producing communities – which the PHC Fund seeks to achieve – is dependent on the extent of community participation in the design and execution of the Fund‟s purposes. To this end, a community governance structure was widely preferred as the most appropriate administrative model for the management of the PHC Fund. An example of such model is the Community Equity Fund, developed by Oxfam and adopted by African governments for the solid minerals sector. The National Assembly is further urged to consider the creation of a community-based fund management structure, called the Community Development Board, to manage the PHC Fund. The proposed Community Development Board will serve as an independent body, without prescriptive interference from government agencies, state governors and traditional institutions, whose members are appointed for a fixed tenure by different interest groups – women, youth, traditional rulers, elders‟ council within oil producing communities. To check multiplicity of duties, the PIB should recognize the roles of important agencies like the National Oil Spill Detection and Remediation Agency (NOSDRA), responsible for cleaning up of oil spills and environmental remediation. Accordingly, the management of the remediation fund created by section 203 of the PIB should be vested on NOSDRA, as opposed to the Upstream Petroleum Inspectorate (UPI). This will not only guarantee the UPI‟s and NOSDRA‟s independence and effectiveness, but also, inject more clarity in institutional obligations and regulatory functionality in the oil industry. Under S. 148, the Bill should confer oil producing communities “a right of participation” in recognition of their economic disadvantage and decades of environmental despoliation in the region. Noting that the 30 percent shares of the National Oil Company (NOC) will be listed on the Nigerian Stock Exchange, demands by oil producing communities for an opportunity to convert their lands used for oil production as equity shares in the NOC should be considered as a strategy for promoting community participation in oil industry operations. Free, prior and informed consent of oil producing communities must be sought and obtained by oil companies and licensed operators before the commencement of oil production. Provisions requiring operators to hold due consultations to identify the needs of the community people is imperative, and should be recognized as part of the obligations of licensee, lessee and contractors set out in S. 292 of the PIB.

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Should artisanal refining be legalized? Young Nigerians speak! Crude oil theft is a booming trade in Nigeria‟s oil-rich region, the Niger Delta. With constantly high unemployment rates forcing local youths to take up this occupation, the region has consequently witnessed the massive proliferation of artisanal refining sites where stolen crude is locally stored and “refined”. The profusion of such illegal sites, particularly the employment opportunities they offer teeming unemployed youths continue to propel questions regarding the legitimacy or otherwise of artisanal refining. While calls have been made urging the government to consider the possibility of legalizing the trade to make room for better regulation, studies have also shown that the trade poses great risk of self-harm, including the longer-term health effects of ingestion, absorption and inhalation of hydrocarbons. As the Nuhu Ribaduled Petroleum Revenue Special Task Force revealed, mixing highly unstable stolen condensate with kerosene, diesel and petrol damages automobiles and generators, and causes frequent explosions. These may have killed several hundred Nigerians over the past decade. On January 23, 2013, Nigeria‟s president was a guest on the international television station, CNN, anchored by Christianne Amapour. Crude oil theft in Nigeria was one issue that dominated the CNN interview discussions. That interview propelled debates across diverse social media sites, including Spaces for Change‟s Discussion Room on Facebook. Should artisanal refining be legalized in Nigeria? Excerpts of responses by Nigerian youth are reproduced below: Shola Adebowale: The illegal refineries should not be hastily condemned. That was the secret of the industrial revolution in Britain. The British merchants learnt from peasant artisans in Asia, Arabian Peninsula and Africa and perfected it. One problem stalling growth in Africa is that its people are not well disposed to progressive ideas. The Cluster Bomb is one of the most devastating and dreadful bombs in history. It was so dreadful that the United Nations (U.N) once put an embargo on its usage in war and armed conflicts. What many people don‟t know is that that bomb can be locally produced in Nigeria. It was first produced and christened 'Ogbunigwe' during the civil war. Today, that knowledge has not been effectively transferred from one generation to another. That same logic applies to artisanal refining. Benjamin Adelaja Adekunle: Necessity is always the mother of invention. What is going on the creeks may not be up to international standards, but the products are in use in many local communities across the Delta. While it is true that illegal refining is associated with environmental pollution, enquiry should be made into how to improve artisanal refining methods. Chetaala Ilo: The major setback in curbing artisanal refining is that crude oil is fluid, volatile and seamless, having no chassis number or special form of identification. Once it leaves the point of theft and is handed over by the "thieves" to an equipped trader, then it becomes a standardized global commodity which anybody with the necessary funds can buy. The stolen crude essentially ends up at an oil refinery and at the point the cargo leaves the hands of whoever sold it "from the ground", then it becomes a legitimate tradable commodity.

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Fortune God'sSon Alfred: Illegal refineries in the Niger Delta have for long, abandoned the firewood and boiling pot method. Today's illegal refineries have passed that crude stage and now employ more modern refining techniques. Instead of scrapping local refining methods, the Nigerian state can learn a thing or two from those illegal refiners. Da Thinka: The argument that artisanal refining contributes to local economy is a lie peddled by the leaders of the Niger Delta region. These illegal refineries churn out substandard products that wreck car engines and cause kerosene explosions. They cause more harm than good. The condensates produced at the illegal refining sites might be light, but too heavy for automobile engines) thereby damaging cars that use them. Why do you think countries all over the world spend billions to build refineries?? They should have just gotten drums and firewood to “cook” and “boil” crude at different temperatures. Every refinery has various units, including fluid catalytic units which are broken down to premium products. The products range from premium motor spirit, associated gas oil or airline turbine kero or aviation petrol, diesel and kerosene. Who wants to fly in an aircraft with aviation petrol produced from one of our illegal boiling units? Glimmering hope for justice in a gruesome murder case A legal advice issued by the Lagos State Directorate of Public Prosecutions (DPP) has established a prima facie case of murder against Mr. Adeola Agborin contrary to Section 221 of the Criminal Laws of Lagos State 2011. Consistent with its commitment to reducing violence against women using the judicial mechanisms of accountability, Spaces for Change (S4C) offered free legal representation to 60 year old Mrs. Elizabeth Farimade, whose 34 year old fashion designer daughter, Martha Farimade, was murdered by her jealous boyfriend, Adeola Agborin on January 6, 2012. The death certificate and autopsy revealed that the deceased died of asphyxia and fracture-dislocation of the cervical vertebrae. The issuance of the Legal Advice came on the heels of sustained advocacy and the diligent monitoring roles played by S4C‟s legal team, which include several court appearances at Yaba Magistrate court beginning from March 2012 and the tireless checkup on the progress made at the DPP‟s office. Aware of the routine administrative delays in Nigeria‟s criminal justice system, compounded by the serious human and material resource constraints which limit progress in the investigation and prosecution of complex crimes, S4C realized that providing free legal advisory services and court representation were not just enough. So in addition to visiting the crime scene to gather independent on-the-spot evidence of crime, S4C‟s legal team liaised with the Homicide Section at the State Criminal Investigation Department, Panti Lagos to share information and to get a fuller grasp of the findings surrounding the murder. When the case file was remitted to the Lagos State DPP‟s office, S4C‟s legal team continuously followed up, through letters and meetings with the state law officers, to ensure an early issuance of the Legal Advice in the matter. As succinctly stated in the legal advice, facts revealed that Adeola Agborin, the deceased‟s boyfriend, in his confessional statement admitted that he committed the crime and he is bound by the provision of Section 29 of the Evidence Act 2011. Driven by sheer jealousy, Mr. Agborin, suspected that the deceased was dating someone else. After he allegedly killed her on the night of January 6, 2012, he put her in a wheel barrow, covered her up with refuse, and then dumped her body at a gutter beside her house in the early hours of the morning. Violence against women is a global phenomenon as old as human history. Likewise, in Nigeria, violence against women in public and private spaces is widespread, having no

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age limit or cultural barrier. “Beyond the desire to obtain favourable verdicts in lawsuits initiated on behalf of affected women, S4C will continue to employ litigation as part of broader remedial and preventive strategy for reducing violence against women”, says, Victoria Ibezim-Ohaeri, S4C‟s executive director.

Prepared by: Spaces for Change Headquarters: 3A Oduyemi Street, 1st Floor Opposite Ikeja Local Government Secretariat Anifowoshe, Ikeja Lagos Nigeria Email: Website: Blog: E:Library: Facebook: Flickr:

spacesforchange.s4c@gmail.com; info@spacesforchange.org www.spacesforchange.org www.spacesforchange.blogspot.com http://issuu.com/spaces.for.change/docs/ http://www.facebook.com/groups/spacesforchange/ http://www.flickr.com/photos/spacesforchange/

Twitter: @spaces4change Telephone: +234.1.8921097 +234.81.84339156 © February 2013 Spaces for Youth Development and Social Change (Spaces for Change) All rights reserved. This book is copyrighted and so no part of it may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, electrostatic, magnetic tape, photocopying, recording or otherwise, without the prior written permission of the copyright owner.

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January - February 2013 Newsletter  

This newsletter covers activities and programs implemented by Spaces for Change between January and February 2013

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