Sep 23, 2013

Nigeria’s widest circulating newspaper

Lagosians spend N36b on parties •Fashola unveils survey

NEW S NEWS

Page 8

Foreign Poet, 58 others die in Kenya attack P58 Sports My goal special, says Mikel P24 Business Textile Industry still in turmoil P2 www.thenationonlineng.net

VOL. 8, NO. 2615 MONDAY, SEPTEMBER 23, 2013

TR UTH IN DEFENCE OF FREEDOM TRUTH

N150.00

‘N850b saved in downstream oil sector’

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HE Federal Government saved N850 billion last year in the downstream sector of the oil and gas sub-sector, Minister of Petroleum Resources Mrs. Diezani Alison-Madueke said at the weekend.

The savings, according to a statement by the ministry, include N467.20 billion obtained from the

By Our Reporter

N32 per litre mark-up in petrol pump price of January 2012 and the N142.30 billion savings from the N20 million litres per day reductions in national consumption of Premium Motor Spirits (PMS).

The Minister said: “Inspite of these savings, we have also been able to maintain

stability of products supply, while putting in place, stringent regulatory conditions which would make it difficult for dubious marketers to short-change the system”.

She added that “the Federal Government has done extremely well in halting fuel subsidy scams in the country, and as such, our efforts at transparency and accountability are beginning to

yield positive results.”

According to her what motivated the paradigm shift in the reforms is the decision of the government to address the pervasive malpractices in the oil and gas sector.

She listed the reform initiatives to include: capacitybuilding for the Departments and Agencies under the Ministry of Petroleum Continued on page 4

•BOKO HARAM KILLS THREE POLICEMEN IN KANO AS BORNO DEATH TOLL HITS 147 P56

Governor hides Jonathan’s one term pact document G-7 governors to boycott Oct. 7 meeting with President

Southsouth governor ‘keeping agreement’

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From Yusuf Alli, Abuja

PPONENTS of President Goodluck Jonathan’s yet unannounced bid for another term may have lost a vital weapon of their case.

The one term agreement document the President allegedly signed with the 23 Peoples Democratic Party (PDP) governors is missing.

It was learnt that the agreement was kept with a Southsouth governor, who is now claiming ignorance of where it is kept.

Some governors, especially the aggrieved PDP G-7 governors, have urged the President to stick to the one term pact he allegedly signed in 2011. Dr. Jonathan denies he ever agreed to do just one term.

Leading the agitation for compliance with one term agreement is Niger State Governor Babangida Aliyu.

At the peace talks on PDP crisis in the Presidential Villa, the President pointedly accused Aliyu of stoking the fire ravaging the party.

Neither those for Jonathan nor those against him have the one term agreement paper, The Nation has learnt.

It was learnt that when the agreement was signed, most of the governors were not eager to have a copy.

But the paper was allegedly given to a Southsouth governor to keep as a reminder to Jonathan that his zone was in custody of the pact.

It was gathered that since the row over another term broke out, the governor has refused to release the paper.

The governor denies being in custody of the paper.

The said governor is fully behind the second term project with confidence since the pact is in his care.

A top source said: “No doubt, there was an agreement but it was not circulated to all the

Continued on page 4

From Yomi Odunuga and Gbade Ogunwale Abuja

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EACE seems so far from the Peoples Democratic Party (PDP).

The Group of Seven (G-7) governors and the Baraje-led faction may boycott the October 7 meeting with President Goddluck Jonathan and his supporters.

Both parties agreed to meet on October 7 at the last session on September 16.

The meeting also agreed that both parties must avoid making inflammatory statements.

The communiqué of the meeting was read by Niger State Governor Babangida Aliyu with whom were President Jonathan and the other governors .

But yesterday a source close to the G-7 governors said they could have honoured the meeting in deference to the President but for his close aides’ continuous umbrage against members of the New PDP, thereby giving the impression that the President and the Alhaji Bamanga Tukur-led faction are prepared for a fight to the finish in the “battle for the soul of the party”.

The source said it would •FIT AS A FIDDLE: Gen. Muhammadu Buhari (right) and Asiwaju Bola Tinubu arriving at the Euston Train Station Platform. London to board the Virgin train to Manchester for the inauguration of the Democratic Progressive Movement (DPM) in Manchester, United Kingdom (UK)...at the weekend. See another photograph on page 56.

be insulting for PDP National Chairman Bamanga Tukur,

Continued on page 4

•SPORTS P23 •CEO P28 •JOBS P37 •POLITICS P43 •MOTORING P45

THE NATION MONDAY, SEPTEMBER 23, 2013

2

NEWS

Why BoI’s

•From left: Ekiti State Governor Kayode Fayemi, President, Public Relations Consultants Association of Nigeria (PRCAN) Chido Nwakanma, President, Association of Advertising Agencies of Nigeria (AAAN) Bunmi Oke, Prof Emevwo Biakollo and President, Nigerian Guild of Editors (NGE), Femi Adesina, during PRCAN’s annual gold medal lecture in Lagos... at the PHOTO: ABIODUN WILLIAMS weekend.

Contrary to the claims that the ailing textile industry is on the road to recovery, Assistant Editor ADEKUNLE YUSUF, who visited some troubled textile factories, reports that there is a high way to go for the industry.

A •Niger State Governor Babangida Aliyu (left) greeting Prof Victoria Ezenwa (right) of the Federal University of Technology, Minna during a re-orientation workshop for Niger State students at the UK Bello Arts Theatre in Minna ...at the weekend. With them is Commissioner for Tertiary Education Dr Mohammed Bashar Nuhu.

• From right: One-time Lagos State Commissioner for Finance Wale Edun, Tomas Ussher, Halifa Ibrahim and Tobi Edun displaying the Dangote polo tournament cup at the 2013 Kano International Polo Tournament in Kano... yesterday.

SEE STORY ON PAGE 24

•From left: Representative of the Director-General, Standards Organisation of Nigeria (SON), Mrs Oluremi Ayeni, Mazi Sam Ohuabunwa and the Presiding Bishop of The Redeemed Evangelical Mission (TREM), Dr Mike Okonkwo, during a conference tagged Breeding Leader for Empowerment and National Transformation (BLENT), at the TREM Headquarters in Gbagada, Lagos... yesterday.

PHOTO: MUYIWA HASSAN

T a cursory glance, the ailing textile industry appears on a steady but slow walk from a recession to a rebound. In a way, this glad tiding should call for celebration among the teeming Nigerians who lost their jobs to the collapse of the subsector. At least, that is the sweet music being played for the public by some stakeholders in the industry, especially government officials. The expectation cannot be less. With a N100 billion textile revitalisation lifeline, which scores of comatose textile firms have benefited from in terms of soft loans administered by the Bank of Industry (BoI) at single digit interest rate, there is optimism that the industry, which formerly employed the highest number of hands within the manufacturing sector, will be stirred into buoyancy it lost many years ago.

BoI’s Managing Director Ms Evelyn Oputu wants Nigerians to believe that the beleaguered textile industry will start witnessing a rebirth soon. After supervising the disbursement of the textile revival fund to about 50 textile firms, Ms Oputu indeed has enough justifications for her optimism. To avoid fraud, the BoI worked with each beneficiary to deploy the lifeline into servicing whatever the beneficiary claimed as his or her utmost need.

While stating that about 60 percent of the N100 billion has been disbursed to some beneficiaries, she exuded confidence that the lifeline is already yielding results, including recreating 25,000 jobs and raising some textile factories from the dead. “The Nigerian textile industry is bouncing back and will soon explode.

“Nigeria, like other African countries, is facing infrastructure deficit. By the time we completely address the challenges of infrastructure like power and transportation, you will see the rate at which we will be moving. The railways have started, and we are also addressing power. So, in a no distant future, we will start seeing the small and medium enterprises fully back in place and moving.”

Also recently, a picture of rosiness was painted by the Minister of Industry, Trade and Investment Olusegun Aganga, who said the fund has given the textile industry a new lease of life. According to the minister, the collapsed subsector is no longer on crutches, as the revival

‘

In those good days, we employed between 250,000 and 300,000 workers but now we have less than 25,000 workers in the industry. Before, we had factories in Onitsha, Asaba, and Aba. As at today, we have no factories in those places again.

Like what we have in Port Harcourt now where a member is producing propylene bags. In Aba, we have somebody producing mosquito net, T-shirts and all the rest of that. That is all that we have from that part of the country, so it is bad as that

‘

fund has helped revamp many companies in the industry, raising the capacity utilisation in the subsector from 29 percent to 52 percent.

Aganga said: “Besides the cement industry, the textile industry has been revamped through the Bank of Industry-managed Cotton, Textile and Garment (CTG) Industry Revival Fund Scheme that disbursed loans to about 50 textile companies at six percent interest rate. Recent findings show an encouraging impact as figures from the Manufacturers Association of Nigeria (MAN) reveal that some ailing textile mills have been revitalised, leading to 8,070 jobs being secured and 5,000 ones created.”

However, beyond the façade of empty optimism and scanty impact of the fund lies an industry that is still gasping for breath, as it is

THE NATION MONDAY, SEPTEMBER 23, 2013

3

NEWS

N100b can’t revive textile industry

•Inside Adhama Textile and Garment, Kano

•Supertex Textile, Kaduna: fast becoming a forest

PHOTOS: ADEKUNLE YUSUF

•Ms Oputu: her bank’s efforts not achieving much

‘Textile industry needs protection not lifeline’

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Saidu Adhama, founder and Chief Executive Officer (CEO), Adhama Textile and Garment Industry Limited in Kano, speaks on how the textile industry can be revived by protecting local manufacturers from their foreign counterparts. He believes a lifeline is not what the industry needs to recover from recession. ADEKUNLE YUSUF met him in Kano

HAT is the state of the textile industry?

There is a big vacuum but the government has been doing been its best to address the issue to the best of my understanding. But there is still a lot to be done. It is a collapsed sector. Cotton is a job creator and an empowerment commodity. Starting from its planting to the time you take your cloth to your washman, it is a source of livelihood. By the time you make cotton one of the major commodities that government should have strategic policy on, then you certainly have no reason to have any poor individual in this country; everybody will live within the acceptable level of livelihood because everybody will be busy doing something. For instance, one basic need of humanity, that 90 per cent of humanity needs which is essential to dressing is pant. Going by our population in this country, which is 150 million, from a day old to the adult, given the poverty level of Nigerians, give each Nigerian 3 pieces of pant per annum, that will mean 150 million by 3 pieces. That is 450million pieces of pant. And if a baby is born today after 90 days, that baby will outgrow those three pieces of pants used at birth, but we still say let the baby use it for 1 year. And today no industry in Nigeria has and is using the capacity to produce 150 million pants per annum today.

What has been done to address the challenges?

We had a retreat in Abuja with the Minister of Trade and Investment and I asked him the question that which factory is producing 1 million pieces of pants for Nigerians today. The answer was negative and the market for 450 million pieces of pants for Nigerians, not even counting our neighbouring countries is there. But, who owns those markets? The Asians and the Middle East because Nigerians prefer that these items are brought from Dubai, India, Singapore and China.

What is your take on the World Trade Organisation (WTO) agreement?

How can someone who cannot vote and be voted for according to our con-

stitution just appear one day and takeover our market, all in the name of open market? Why not apply the same principle of open market to our electoral system? It is only in Nigeria that people vote and lose the control of their markets all in the name of World Trade Organisation (WTO) agreement. What has been the benefit of the agreement since we signed the WTO? It has always been disadvantages. It is time we checked how far we have come and what are the benefits to the economy. The government is investing money and I am one of the beneficiaries of the revival fund of Bank of Industry. I bought all the machines in my industry; yet I can’t employ people.

I have the capacity to employ 1200 Nigerians but now I am able to employ only 24. I am also faced with the challenge of training people because we have lost all our skilled workers.

But, at the end of the day, someone is being allowed to bring in what 1200 people can produce and take to the market through Niger or Lagos or Chad. And there is every day importation of finished goods. A few weeks

back, the Chinese traders had a meeting with our government and our representative in the sector and they said they have made a turnover on finished goods to the tune of $4 billion in Kano in just six months. That was during the offseason when there was no Christmas, Sallah or any period of celebration and this market is meant for the Nigerian textile industry, tailor, and farmers. So, the government is not even benefiting. So, if the Chinese can make $4 billion offseason, what will happen during the on-season when we have celebration? And he went unchallenged.

Which means that we have the market?

The market is there; it is just the protection of manufacturers that is missing because they believe that WTO and deregulation have been put in place.

We are yet to know which one is superior: Is it the WTO, deregulation policy, liberalisation policy or the constitution? To the best of my knowledge, the WTO agreement says any signatory has the right to protect its home-based industry and Nigeria is a

signatory. There are some countries you will visit that they will tell you that that business is strictly for that country and should not be imported. But it is not like that in Nigeria. We are the ones who voted in all these politicians, yet because of this WTO, they are voting us out of business.

We heard that with the textile intervention fund, there is a new lease of f life for the textile industry. Are there grey areas?

At the initial stage, we told government that it has to be a complete circle and there should be no vacuum in the revival effort. If you want to revive a patient, you have to give him full dosage of treatment. But, the gap we have now is the market. We are now at a stage of production, we have modernised. Those of us who have accessed the textile revival fund, if we produce now, there is no market for us. I produce T-shirts here and the production cost for my T-shirt is N230.

The retail sale of it in the Chinese and Indian market is N130 to N150 in Kano market, far lower than the production cost here in Kano using my own generator, water, paying the workers and training the workers. I need profit to pay my wages and repay my loans, but the retail sales of the same quality or even less is N120 and the highest quality is sold for N180. How can I compete? The government has to stop the smuggling and the dumping of foreign materials.

What is the interest rate on the intervention fund?

It is lesser than 10 per cent for between 6 to 8 years. And that is small because for a reviving sector, it is meant to be about 12 years considering the challenges we are facing. For one and a half years, I could not open the factory because of the violence. If you check around, you will find out that most textile factories have closed

steeped in monumental decay that can condemn it into outright extinction. The situation report in most of the textile firms is not impressive, as most textile firms in the North

and South are still moribund; only a few exist on skeletal operations.

What then informs the optimism of Aganga and Ms Oputu? According to textile manufacturers who spoke

with The Nation, it is either government officials underestimated the rot in the subsector or they are deliberately playing politics with it for political ends. The situation, as in-

vestigations reveal, portrays a textile industry that is still in the throes of neglect. Sadly, this precarious situation is the same for both textile firms that accessed the fund and

FACTS AND FIGURES N100b 25,000 300,000 N5.6tr BoI’s cash Jobs said to meant to revive have been the industry saved by the revival efforts

1200

The number of workers Adhama Textile should employ

24

The number of workers Adhama is forced to employ

The number of people the industry used to employ

What AMCON spent to rescue three banks

$4b

0%

What Chinese textile traders made in Kano in six months

The interest rate textile manufacturers want BoI to take on revival cash

•Adhama

down in northern states. In the past, they used to employ people per shift, and they have 24 hours, but it is now completely closed, though BoI is trying to revive them after about ten years of collapse.

The Indians and the Chinese are even bringing in caps; they don’t want our tailors to work. Even the singlet that most people wear is not made here; they are imported, even though we have the machines that can be used to produce them. I have 35 years of experience in the business. If you give me money to buy machines and raw materials and you don’t give me an equal opportunity in the market, then where is the help? If we Nigerians say we should not be in isolation, I once made a suggestion during a retreat to help revive the textile industry, which the then Vice-President Atiku Abubakar attended. I suggested that maybe we should also allow Nigerian customs and army to compete with the Chinese, Indian or British or American customs and soldiers. I don’t think that will be fair of us. There was a big silence; the Vice President just shook his head. Then, why is our government and legislators opening we in the private sector to undue competition?

We cannot compete with the manufacturers in India, China, Europe because we don’t have the infrastructure on the ground. those that did not; for what they seem to have received from government is a lifeline without the muchneeded rescue, leaving the industry as vulnerable as ever. Here is how.

4

THE NATION MONDAY, SEPTEMBER 23, 2013

NEWS ‘N850b saved in downstream oil sector’ Continued from page 1

•President Goodluck Jonathan being recieved by Nigerian Permanent Representative at the United Nations, Prof. Joy Ogwu; on his arrival in New York for the 68th session of the UN General Assembly in New York…yesterday. With them are: his wife, Dame Patience (right) Nigeria’s Ambassador to the United States, Prof. Ade Adefuye (left) and Supervising Minister of Foreign Affairs, Prof. Viola Onwuliri.

PHOTO: NAN

G-7 governors to boycott Oct. 7 meeting with President Continued from page 1

who was never recognised as leader of the party to give directive to Rivers State Governor Rotimi Amaechi who is a strong voice in the party from its inception.

He cautioned against any situation that may push members of the new PDP to declare support for the All Progressives Peoples Congress (APC) noting that doing so may lead to complete annihilation of the party in the country.

He said: “For now, nothing has changed. We had initially agreed to honour the October 7 meeting with the President out of courtesy. But it’s obvious that some power drunk persons have not been able to caution their aides against making inflammatory statements that may jeopardise the peace effort.

“As things stand today, we are

M

collective in our decision to boycott the October 7 Aso Rock meeting. What are we going to discuss when some of the close aides of the President have said that they are ready for fight to the finish? I think they are toying with this matter and they will soon realise that this is no longer a joke.

“Maybe, by next year, when it dawns on them that the President cannot win the election with all the battles going on, they may come to the table. But that will be too late. I pray they don’t push us to join the APC or any other party. If that happens, then we can say a goodbye to the PDP as a ruling party in Nigeria.

“When people say we don’t have the majority, I always laugh. How could anyone say that when we already have a majority in the House of Representatives? We already have more than 200 on our side and I

know others are waiting to join.

Even in the Senate, efforts are on to get a majority or, at least, twothirds of the members on the side of the new PDP. Let’s see how Tukur and those backing him will sustain the tempo of the noise they are making.

“When people say Tukur has written a letter to Governor Amaechi to tender a letter of apology, I laugh. Who is Tukur to write to a governor for an apology? In the first place, is Tukur the recognised chairman of the party and what authority does he have to make such a questionable demand? It is all a lie. The Rivers governor has not seen any letter and if he sees any, I can tell you that he would ignore it. In fact, they should push any of the aggrieved governors to point of turning this into a personal battle. I doubt if they can bear the consequences of such a possibility.”

The Baraje-led New PDP urged the President to return diplomatic passports allegedly withdrawn from Senate President David Mark and House Speaker Aminu Tambuwal.

The party was reacting to reports that diplomatic passports of leaders and some members of the National Assembly may have been withdrawn on the directive of the Presidency.

In a statement issued by the faction’s National Publicity Secretary, Chukwuemeka Eze yesterday, the party attributed the action to a fallout of the warm reception given members of the PDP breakaway group when they visited the National Assembly last week.

The statement said: “The implication is that whenever they travel abroad, the 109 Senators and 360 members of the House of Representatives would no Continued on page 57

Resources, restoring credibility in the process of products supply and distribution, conduct of a prequalification exercise for traders/suppliers initiated in the form of technical audit of suppliers of PMS into the Nigerian market.

Other measures include the conduct of monthly and midquarter Import Performance Review Meetings with stakeholders and resolution of marketers’ complaints through effective mediation, thereby stemming the erosion of marketer’s confidence in fuel importation regime with its attendant payment uncertainties occasioned by budget approval delays, among others, and in the process, ensuring seamless product supply to Nigerians.

Said the minister: “Over N50billion of private investment was realised in the downstream sub–sector supply and distribution infrastructure in 2012, employing thousands of Nigerians and contributing to our economic growth. Such a

staggering net-flow of investment has also led to the rolling out of private mega-filling stations across the country renewed investment in modern vessels and IT-driven depots all along the coastal areas of the country from Lagos to Calabar’.

The Minister said, the Pipeline and Products Marketing Company (PPMC), a subsidiary of Nigerian National Petroleum Corporation (NNPC), has completed the repair of the Port-Harcourt -Aba, Warri-Benin and Jos-Gombe pipeline networks to ensure pumping of products to the depots in those areas. But has also commenced the process of upgrading some of its rehabilitated depots from analogue to digital loading meters.

The digital upgrade has been completed in Warri, Aba and Calabar Depots while work is ongoing for similar upgrade in the eighteen other depots across the country.

Some of the rehabilitated deContinued on page 57

Governor hides Jonathan’s one-term pact document Continued from page 1

then 23 PDP governors. But a copy was kept with a Southsouth governor for strategic reasons.

“When the issue came up recently among some PDP governors, no one could produce a copy.

“I think the Presidency was aware of where the pact was kept and that is why it has been confidently denying any pact.”

Responding to a question, the source added: “If the pact cannot be produced and the court does not allow the New PDP to exist, the Kawu Baraje faction of PDP may either team up with the All Progressives Congress or Accord Party as the last option.

“But the G-7 governors and

New PDP may form a coalition with the APC to ease out Jonathan in 2015.

“People of like minds are already putting heads together on how to effect change in 2015.”

A Northern governor confirmed last night that the “agreement is with a Southsouth governor”.

The Niger State governor had on Liberty Radio in Kaduna early this year alleged that Jonathan entered into a oneterm pact with PDP governors He said: “I recall that at the time he was going to declare for the 2011 election, all the PDP governors were brought together to ensure that we were all in the same frame of mind.

“And I recall that some of us Continued on page 57

Abuja killings: Security agents comb Apo

ORE soldiers and operatives of the State Security Service (SSS) have been deployed on Gudu hills in a fresh combing of the Apo Legislative Quarters, Abuja for terrorism suspects.

The combing was said to be part of the ongoing investigation of how Boko Haram leaders allegedly infiltrated the ranks of over 200 migrant and menial workers living in a twin-duplex around the Gudu Hills.

Nine of the migrant workers were killed and 16 others injured in the raid of the hideout last Friday.

The Deputy Director, Public Affairs of the State Security Service (SSS), Marilyn Ogar (msi) yesterday said the agency was standing by its claim that the twin-duplex was raided following evidence of Boko Haram members in the place.

She said contrary to the outrage greeting the action, the SSS respected the rule of engagement in storming the place.

Vehicles and people moving in and out of Sabo Barkin Zuwo Street (including those of our

T

JNI laments sorry state of the nation

HE Muslim umbrella body in the north, Jama’atu Nasril Islam (JNI) yesterday lamented the sorry state of security in the country.

The Secretary General of the Muslim body, Dr Khalid Abubakar Aliyu, said in a statement that after achieving some level of peace in parts of the North, innocent lives were again lost in attacks.

Aliyu condemned the killing of some alleged Boko Haram members by security agents in Abuja and urged the government to investigate the incident.

The statement reads: “Jama’atu Nasril Islam (JNI) received with shock and bewilderment the cruel and senseless killings/ attacks on innocent people at Apo in Abuja (FCT), Benisheikh, in Borno State, Wase, in Plateau State, Kafanchan in Kaduna State and also various attacks in Nasarawa and From Yusuf Alli, Abuja

correspondents) were thoroughly searched by soldiers.

A top security source said: “In spite of the raid on Friday morning, investigation is still ongoing.

We have some suspects in detention who are still interacting with

From Tony Akowe, Kaduna

Taraba States.

“It is quite unfortunate, regrettable and condemnable that, after witnessing relative peace in some of these states in recent time, these unfortunate recurring massacres are coming up within 72 hours concurrently, claiming many lives.

“JNI laments this sorry state of affairs in the strongest terms, for the nation seems to be extricating into nihilism, leading to multiple loss of innocent lives, the repercussion of which may not be good for the nation in the nearest future. Hence, the situation calls for Allah’s guidance and intervention.

“A critical overview of these repeated acts of absurdity clearly depicts to the discerned, that the manner in which the SSS Spokesperson handles reportage of security issues

us.

“We are combing the area — in line with clues at our disposal that Boko Haram leaders actually infiltrated the rank and file of those living in the twin-duplex.

“We have been receiving uncomplimentary comments from

needs serious introspection, because the spokesperson concludes matters before investigation.

“The case of the Nasarawa State man found with dynamite in Radio House is still fresh in the memory, as Nigerians are appreciably learned and cannot be taken for a ride. Therefore, the spokesperson should be called to order.

“It is most likely as reported by the media that the Apo victims were not Boko Haram members as claimed by the spokesperson.

“More amazing also is the news going round that the military were said to be overwhelmed by insurgents and driven away prior to the Benisheikh attacks. Hence, the use of the military regalia by the insurgents.

This act calls for sober reflection, if it is con-

some highly-placed Nigerians but as security agencies, we knew the weight of information we had before we struck.”

Also, the SSS said it was standing by its statement on Friday that its operatives actually clashed with Boko Haram elements in Gudu.

Continued on page 57

It insisted that it respected the rule of engagement in carrying out its raid of the twin-duplex.

The Deputy Director, Public Affairs of the State Security Service (SSS), Marilyn Ogar (msi), who spoke with our correspondent, said: “We stand by our Continued on page 57

•Ogar

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THE NATION MONDAY, SEPTEMBER 23, 2013

5

NEWS

Why BoI’s N100b can’t revive textile industry ‘

Industry, still a swan song

A

LTHOUGH Adhama Tex tile and Garment Industry Limited, located in the ancient city of Kano, is fortunate to have benefited from the revival fund, everything around the company evinces a tale of an empire that has fallen from grace. Right from its entrance, telltale signs of a glorious past are as palpable as the surf on the beach. While its premises are yet to be taken over by weeds like many others in the vicinity, the aura inside the ailing textile firm is bound to leave visitors with an unmistaken message that it has seen better times. At every turn in the sprawling edifice, rusty tools, dusty furniture as well as disused machines assail the eyes, as the ageing facility struggles to bounce back to life it once enjoyed. At the height of its buoyancy, Adhama’s staff strength rose to 335 from a modest 19 hands at inception in 1978 before recession set in, leaving its fortune plummeted.

However, the textile revival initiative by the Federal Government has made Adhama richer by a few new machines, more modern than its old stock. Somehow, this generosity of government has also catapulted the embattled firm to a position to provide gainful employment to 24 Nigerians. But, the bad news is that both the old and new machines in the factory are practically lying fallow, gathering dust as a result of low patronage. This has forced the 34-year-old factory, which used to load at least one truck of textiles to Aba and Onitsha daily, to barely survive on skeletal operations.

“The government is investing money and I am one of the beneficiaries of the revival fund of Bank of Industry. I bought all the machines in my industry, yet I can’t employ people. I have the capacity to employ 1200 Nigerians but now I am able to employ only 24. I am also faced with the challenge of training people because we have lost all our skilled workers,” said Saidu Dattijo Adhama, founder of Adhama Textile and Garment Industry Limited.

But, Adhama is obviously not alone in this grace-to-grass story. In fact, the tragedy of its fall pales when compared with more debilitating fate that has befallen many of its neighbours, many of which have since packed up due to inclement economic climate.

While the ailing Adhama still operates at less than ten percent of its installed capacity, Gaskiya Textile Mill, sited within the same estate in Kano, cannot afford such a luxury, for it is long dead and buried, remaining only its carcasses and large premises that have yielded space to overgrown weeds. Now, the company that once enjoyed a huge reputation for churning out fabric materials of exotic quality has been torn into smithereens, having to battle litigation issues with its former employees who claimed it unilaterally shut down operations without settling their outstanding salaries and allowances. In a suit instituted against the management of the firm, the National Industrial Court ordered it to pay N128.3 million to its former workers and the National Union of Textile, Garment, and Tailoring Workers of Nigeria (NUTGTWN) as gratuity and union dues. By this judgment in April 2013, the industrial court, presided over by Justice F. L. Kola-Olalere, merely upheld the 2010 ruling by the Industrial Arbitration Panel, which had earlier said the management of the company was wrong in unilaterally closing shop in 2005 without paying the entitlements of its disengaged workers.

That is just a tip of the iceberg.

While Gaskiya is no longer able to produce clothes for Nigerians, it burdens them with migraines, as its premises housing dilapidated buildings have since become a sanctuary for criminals and religious extremists

The companies that got the revival fund have merely bought themselves more time. They will come back to the same thing. The fund is a good idea, but when that scheme was created, it came with a lot of promises •Umar

•Kaduna Textile: An empire in ruins

who terrorise the populace, maiming and killing innocent souls. Unfortunately, things do not fare better in the neighbouring Kaduna, capital of Kaduna State, which is home to a huge concentration of textile companies that used to produce top quality textile materials for the country and many parts of West Africa at some point. Here, all the textile companies that formerly employed about 300, 000 hands are practically dead, except two that still run skeletal operations.

One of the big players in the sector back in the good old days is Kaduna Textile Limited (KTL), owned jointly by all the 19 northern states. Established in 1957 by the late premier of the defunct Northern Region, Sir Ahmadu Bello, KTL was a beehive of activities in its apogee, with over 9000 workers on its pay roll before it was hit by a wave of recession that gripped the industry, forcing it to close shop in 2002.

Today, the expansive building of KTL is desolate, while gigantic machines in the premises have decomposed, with reptiles and domestic animals having become the new landlords in a once flourishing manufacturing company.

Now, instead of giving employment to thousands of Nigerians, KTL has plummeted to become a source of headache to residents of Makera and Kakuri areas of Kaduna where it is located, as hoodlums that have found a safe abode in the moribund company now terrorise the neighborhood.

Although entreaties to the 19 northern governors have yielded the constitution of a five-governor committee, headed by Governor Abdulfattah Ahmed of Kwara State, to explore the modality for reviving the factory, the woes of former workers continue to worsen. And as if to sound a death knell on the company, a criminal gang known among the locals as “KTL thieves” is busy making illegal fortune from vandalising and looting its property since the closure of the textile company.

Since their closure in September 2003, workers in both Northex and Finetex Limited have also gone up in arms against their employers over unpaid salaries and terminal benefits, amounting to N305, 653,887 as gratuities, N63, 433,190 as outstanding salaries, and N7.6million as outstanding union dues. After legal fireworks that lasted more than eight years, a out-of-court settlement seemed to be yielding fruits as principal shareholders of the two firms, especially Alhaji Aminu Dantata, have started paying the N250 million agreed on in installment. It was also gathered that the two firms may roll out their plans for revival any moment from now.

The fate of textile firms in Lagos is not any better. Although some operate on far below their installed capacity, many of the big industry players have bowed out of the fabrics business; they have either leased their premises to other con-

cerns or divested to other interests.

For instance, Aswani Textile has leased its premises on the Oshodi Apapa Expressway in Lagos to Chellarams Plc, makers of full cream instant milk- Real Milk; Churchgate leased its premises to a church. Afprint has divested into manufacturing of edible oil, cars and IT gadget merchandise; Enpee Industries Plc has become a packaging industry. Others have turned their attention to manufacturing of household items, such as soaps and detergents. Today, if information is sketchy as to how and whether these firms intend to come back into textile business, there is no disputing the fact that there is no textile firm in the country that is operating at full installed capacity.

A catalogue of woes

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N time past, the country’s tex tile industry was hailed by all and sundry as the single largest employers of labour in the manufacturing sector, earning it the sobriquet of the pride of an emerging nation. At the height of the industry’s influence, especially in the late seventies and eighties before the military forced the pungent pills of the ruinous Structural Adjustment Programme (SAP) down the throats of Nigerians, findings show that functional textile mills in the country numbered above 200. Jointly, they employed about ten percent of the population. Not only was the nation inching towards attaining its dream of being able to clothe its citizens, the industry that has now been reduced to a shadow of its old ebullient self once accounted for an estimated 60 per cent of the textile capacity in West Africa. In those days, the giants of the industry, such as United Nigerian Textile Company, Aswani Textile, Afprint Nigeria Plc and many more, were bubbling with life and production, churning out acceptable fabrics of international standard.

Pronto, fakes started to infiltrate the Nigerian markets due to porosity of the nation’s borders, setting the industry on a spiral decline that is yet to be fully addressed.

Over the years, especially in the last one decade and a half, the fortunes of this important industry have continued to plummet while stakeholders keep mouthing ideas as how best to salvage it from total extinction staring the subsector in the face. According to employers in the nation’s beleaguered textile industry, what has brought about their tales of woes is a long list of problems: smuggled textiles particularly from Asian countries have exerted excruciating pressure on local production and currently account for over 85 per cent of the market share; obsolete equipment which the revival fund is helping to address; unbridled importation, that allows for dumping of highly subsidised alternatives into the Nigerian market; counterfeiting of Nigerian textile

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PHOTOS: ADEKUNLE YUSUF

products; dearth of technical manpower; inconsistency in government policies and perennial electricity outages which the Federal Government has not been able to solve over the years. According to Suleiman Umar, managing director and chief executive officer of Tofa Textile Limited, Kano, all the above factors have combined to snuff life out of the industry.

“The industry is in serious problems.

If you factor in the decline it has witnessed over the years, the industry is almost nonexistent compared to the past. The existing companies are operating below installed capacity, while some even produce seasonally.

Before, the focus of government was on the manufacturing sector. But now, it is on foreign direct investment. They make statements that the economy is growing, but when you go down to the real manufacturing sector, it is not. The problem of multiple taxation is there. If you move your textile materials say from Kano to Lagos, every state on the way will ask for one tax or the other. By the time you get to Lagos, your production cost has increased significantly,” Umar, whose company is into manufacturing of blanket, complained.

While assessing the impact of the revival fund on the industry, Umar and Adhama are of the view that patronage, not lifeline, is what the manufacturers require to be in business. According to them, many of their colleagues who have accessed the revival lifeline have since come to the realisation that production without patronage is meaningless, if not a recipe for further disaster that may plunge the industry into more chaos.

He said: “The companies that got the revival fund have merely bought themselves more time. They will come back to the same thing. The fund is a good idea, but when that scheme was created, it came with a lot of promises. They said money will be given, but there will also be other incentives like tax holiday and so on.

There were promises of zero duty on your goods that are coming and so on. They banned importation of textiles at that time, but that ban has been lifted without putting in place any incentive for the local industries. Because all these things involve many ministries, there are always inconsistencies on the part of government.

Maybe there is lack of agreement between the ministries, one does its own and the other does its own, which is always counterproductive.”

Jaiyeola Olarenwaju, director general, Nigeria Textile Manufacturers Association, said the fortunes of the industry have not really improved much, except that the rate of closures and redundancies has gone down lately. “Currently, the level of closure has gone down drastically and the idea of retrenchment, redundancies are not very common now as it used to be,” he said, adding that the association has less than 30 members now.

Ibrahim Igomu, national chairman, Textile Manufacturers Association, echoed a similar view, saying the revival fund cannot lift the industry from its current state unless other problems affecting patronage of local textiles are addressed.

Jaiyeola said: “In those good days, we employed between 250,000 and 300,000 workers but now we have less than 25,000 workers in the industry.

We had factories in Onitsha, Asaba, and Aba. As at today, we have no factories in those places again. Like what we have in Port Harcourt now where a member is producing propylene bags. In Aba, we have somebody producing mosquito net, T-shirts and all the rest of that. That is all that we have from that part of the country; so it is bad as that.”

The industry after the lifeline, says Mrs Ghada Sulaiman, Managing Director of African Textiles, Kano, is still enmeshed in challenges, which she sttibuted to unchecked invasion of foreign textile materials.

“The industry is down and it needs more than just the effort (lifeline) to get back on stream. We are not capable of printing competitive materials that can compete with foreign materials that often come cheaper. The operating environment has not put us in a situation to compete well,” she said.

OWEVER, Isa Aremu, the General-Secretary, Na tional Union of Textile, Garment and Tailoring Workers, commended the BoI and government for the intervention effort in the sector, noting that though it came late, it was better as many firms had been revived.

“When the textile industry was still vibrant, a single firm could generate about 10,000 jobs. However, due to the intervention fund, we have been able to revive some firms.

There is a need for an accelerated growth in the sector and this can be achieved through increased funding to the sector. A drop in interest rates for the real sector will foster its growth. I believe we can work towards a zero per cent interest rate if we set our mind towards it,” he said.

He said while 58 companies are managing N100 billion textile revival fund, AMCON has spent about N5.6 trillion on rescued banks, stating that same gesture could be replicated in the real sector if the desired growth and employment generation is to be achieved. He, therefore, urged the BoI to increase the tenure rate for loans sought by firms in the real sector in order to aid attractiveness of the loans to the companies and foster development.

Unless and until all these areas are addressed, stakeholders say it is apparent that there is a long hill to climb before local textile manufacturers can beam with easy smiles that the glorious days are back.

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THE NATION MONDAY SEPTEMBER 23, 2013

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NEWS Air traffic controllers threaten to withdraw services •Domestic airlines owe NAMA, NCAA, others

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By Kelvin Osa Okunbor

EMBERS of the Nigerian Air Traffic Controllers’ Association (NATCA) have threatened to withdraw air traffic advisory services to domestic airlines, if they failed to remit their outstanding Ticket and Cargo Sales Charge (TSC) to four aviation agencies, which would enable them meet their statutory safety obligations.

They listed the agencies as the Nigeria Airspace Management Agency (NAMA), the Nigeria Civil Aviation Authority (NCAA), the Nigeria Meteorological Agency (NIMET) and the Nigerian College of Aviation Technology (NCAT).

NATCA urged the Federal Government to call the erring domestic operators to order, saying a further delay in remitting the outstanding ticket and cargo sales charge would force it to withhold its services.

In a statement by Victor Eyaru and Banji Olawole, NATCA’s President and General Secretary, the air traffic controllers said the domestic airlines’ indebtedness to various aviation agencies had crippled the funding of their facilities and operations.

NATCA said it was worried by the looming danger to air safety, following the non-remittance of the TSC, which has run into billions of naira collected on behalf of aviation agencies.

The association explained that the domestic airlines’ huge debts to the organisations have impacted negatively on their safety functions.

The agencies, NATCA said, require huge funds to buy and maintain operational equipment and train its manpower to attain optimal performance.

It said: “It is therefore imperative that non remittance of this fund by domestic airlines would jeopardize the ability of the agencies to finance their safety critical functions. This is unsafe to air navigation within the Nigerian airspace and calls for serious actions”

Investors to inject $1.8b into Discos, says BPE

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From John Ofikhenua, Abuja

HE Director-General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki, has said investors would inject $1.8 billion into the power distribution companies (discos) when private investors take them over.

Dikki said the investment would cover, among others, metering, new customer connections and network expansion, reduction in number of customer interruptions as well as health, safety and environmental practices.

A statement by BPE’s Head, Public Communications, Mr. Chigbo Anichebe, quoted Dikki as speaking in Abuja on the development.

On the implications of the National Integrated Power Project (NIPP) to power transactions, Dikki said the private sector showed a strong will to participate in the generation and distribution sectors of the electricity industry.

The BPE chief explained why the Federal Government decided to engage a Management Contractor for the Transmission Company of Nigeria (TCN).

The statement noted that in a presentation, titled: The Status of PHCN Transaction and Implications for the NIPP, Dikki said there is need to place TCN on the path of best practice, reliability and selfsustenance.

He said this would ensure predictability and security of the transmission system, which informed government’s decision.

The BPE chief predicated the decision on the belief that the management contractor would bring in invaluable experience for the sector’s development, provide clear targets and incentives, build capacity of TCN workers to prepare them for future roles, among others.

Reps’ Committee warns EFCC, others for stalling corruption probe

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ASUU insists NUC should be scrapped •Bishops seek resolution to ASUU-Fed Govt face-off

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HE Academic Staff Union of Universities (ASUU) yesterday reiterated its call for the scrapping or an overhaul of the National Universities Commission (NUC).

The union restated its stand in a statement by the Chairman of its University of Ibadan (UI) chapter, Dr. Olusegun Ajiboye.

ASUU urged the National Assembly to probe the activities of NUC, adding that the commission has failed to reposition the nation’s universities as shown by the NEEDS Assessment Report carried out by genuine academics.

The statement said this contradicted NUC’s accreditation exercises.

The union said the NUC accreditation exercises, which gave a “controversial” clean bill of health to most universities in the country, were the result of what it called a mago-mago (unethical) accreditation.

The union said in accountable climes, the NUC chief would have resigned, following the revelations in the NEEDS As-

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HE Vice Chancellor of Ahmadu Bello University (ABU), Zaria, Prof Abdullahi Mustapha, has urged intending pilgrims to this year’s Hajj to pray for Allah’s intervention in the ongoing feud between the Federal Government and members of the Academic Staff Union of Universities (ASUU).

“I want to use this opportunity of Hajj to appeal to all Nigerians, especially those embarking on this highly spiritual mission to the holy land, to pray to the Almighty Allah for the country’s unity, sustainable peace and immediate resolution of the Federal Government-ASUU dispute,” Prof Mustapha said.

The vice chancellor, in a statement by his spokesman, Mallam Waziri Isa Gwantu, expressed concerns over the lingering dispute.

He said the face-off is threatening to ground the universities and the entire education sector.

The academic noted that the non-resolution of the dispute may affect Nigeria’s image in the perception of international education community.

Prof Mustapha said if the dispute was not resolved within the shortest time, to save the universities from further degeneration, the nation may witness another unfortunate phase of mass exodus of the few intellectuals in the system to other countries in search of alternatives.

From Oseheye Okwuofu, Ibadan and Yusufu Aminu Idegu, Jos

sessment Report.

ASUU stressed that the ongoing strike was total.

The union said it could not be fooled again with “promissory notes” of the Federal Government, which has never worked.

The statement, titled: Where

Okojie Got It Wrong, said NUC’s Executive Secretary, Prof Julius Okojie, cannot absolve himself of the rot in the university system because he has allegedly been regulating quantity instead of ensuring quality delivery.

Prof. Okojie, last Thursday, absolved the commission of any accreditation misdeed.

He said ASUU members were to blame for the develop-

ment.

But Ajiboye described the statement credited to the NUC chief as “careless”.

He alleged that Prof Okojie was using his friends for the accreditation.

The university lecturer said the success of the 2011 elections could be attributed to the patriotic zeal and contributions of the ASUU leadership.

According to him, it was through the ASUU leadership that the election was freer than most of the past polls.

He said: “ASUU cannot be blamed for NUC’s mago-mago accreditations. Rather than blame the union, Prof Okojie should take full responsibility for all the deeds in the NUC, including the work and accreditations...

“Nigerians should be proud of ASUU in its efforts at repositioning public universities. One of these major efforts is the NEEDS Assessment document.

This was a product of a rigorous academic exercise carried out by dependable and credible members of our union. Unlike the numerous faulty accreditation reports, which had given these universities a clean bill of health, the NEEDS Assessment Report stands out as a classical document of reference detailing the rot and decay in public universities in Nigeria.

•From left: Vice Chairman, Stallion NMN, Harisa Vaskiani; Chairman, Sunil Vaswani, President Mike Whifseld and General Manager Exports, Jim Dando, at an event to promote Nissan Motors in Nigeria in Lagos...at the weekend.

PHOTO: ABIODUN WILLIAMS

Court to hear contempt suit Sept 30

From Victor Oluwasegun and Dele Anofi, Abuja

HE Economic and Financial Crimes Commission (EFCC) and the Nigerian Customs Service (NCS) have deliberately refused to be investigated, the House of Representatives Committee on Drugs, Narcotics ad Financial Crimes has said.

It noted that the refusal has hampered investigation into how much has been recovered in assets from persons and organisations arrested and convicted of drug-related and financial crimes.

Its Chairman, Adams Jagaba, said the House was inundated with complaints from the public on the need to know the assets the commission has seized.

He said this made it compelling for the committee to find out the status of the assets the commission has seized and recovered since 2003.

The committee also accused the Office of the Accountant-General of the Federation (OAGF) as well as Estate Derivates of slowing down investigations.

Jagaba, in a statement yesterday, noted that the EFCC has used its powers, contained in Sections 20, 21, 22, 24, 25, 26 and 34 of the EFCC Act 2004, as amended, to seize and forfeit the assets and property of arrested and convicted persons and organisations.

He said the committee was not acting on its own but was mandated by the House.

The chairman said his committee has been fair to all parties, though some of them had not been cooperative.

Jagaba said: “By a resolution of the House on February 28, the Committee on Drugs, Narcotics ad Financial Crimes was mandated to carry out an investigation on the status of all assets seized and recovered by the EFCC since inception and report back to the House within four weeks.

ABU VC seeks divine intervention

From Eric Ikhilae, Abuja

•Jonathan

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FEDERAL High Court in Abuja will, on September 30, hear an application seeking to join President Goodluck Jonathan, nine other key members of the Peoples Democratic Party (PDP) and the party in a contempt suit pending before the court.

Our correspondent obtained a copy of the hearing notices, which were served on the parties last week by the court’s officials.

The President and the other PDP chieftains are cited as alleged contemnors in an application filed by a firm, Bedding Holdings Limited (BHL).

The PDP bigwigs and their party are accused to have illegally used the patented ballot boxes for the party’s last special convention without the consent of the company, the patent owner.

The application, filed on September 9, was re-filed last week to include other major actors in the PDP’s special convention held in Abuja on Au-

gust 31.

The application seeks an order joining Dr Jonathan and 10 others in “the contempt proceedings already commenced by the plaintiff/applicant”.

Those sought to be joined include the Vice President Namadi Sambo; Senate President David Mark; House of Representatives Speaker Aminu Tambuwal; the PDP and its Chairman Bamanga Tukur.

Also to be joined are: the Chairman, PDP’s Board of Trustees, Anthony Anenih; Edo State Governor Emmanuel Uduaghan, who acted as Chairman, PDP Essential Electoral Materials Committee; and the Chairman, Police Service Commission, Mike Okiro, who served as Chairman, PDP Special National Convention Sub-Committee on Security and the party.

77 killed in Pakistani church blast

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BLAST at a Protestant church in northwest Pakistan killed 77 people and wounded more than 120, a local official

said.

The attack took place at the All Saints Church of Pakistan, in the violence-plagued city of Peshawar, about 120 kilometers (75 miles) from the country’s capital, Islamabad.

Two attackers struck right as services concluded, according to the Peshawar Diocese.

“Suicide bombers entered the church compound from the main gate and blew themselves up in the midst of the people,” a statement posted on the diocese website read.

Choir members and children attending

Sunday school are among the dead, they said.

The outside of the church was peppered with debris, and crowds of men and rescue officials covered in blood.

Christians make up less than three per cent of the population in the South Asian nation of 193 million.

No group immediately claimed responsibility for Sunday’s attack.

Prime Minister Nawaz Sharif condemned the attack and in a statement said he was praying for the recovery of those injured.

Sharif said terrorists have “no religion” and that targeting innocents is against Islam.

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THE NATION MONDAY, SEPTEMBER 23, 2013

NEWS

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Afenifere endorses Fayemi for second term

PAN-Yoruba group, the Afenifere Renewal Group (ARG), has scored Ekiti State Governor Kayode Fayemi high in performance.

It said the governor implemented good policies and improved the standard of living.

ARG said judging by the report of its Governance Assessment Committee, Fayemi deserved a second term to continue his people-oriented policies.

Speaking with reporters in Ado-Ekiti, the state capital, ARG Chairman Wale Oshun urged Ekiti residents to vote massively for Fayemi in next year’s governorship election, saying the governor “holds the key to Ekiti’s future peace and prosperity”.

Oshun said: “The ARG committee believes another term in office for Fayemi can only mean continuity of his blazing governance, based on globally accepted principles of democracy and participatory governance.

This will bring global reckoning and prosperity to Ekiti people.”

From Sulaiman Salawudeen, Ado-Ekiti

Chairman of the ARG Governance Assessment Committee and former Super Eagles’ Captain, Chief Segun Odegbami, said the panel was set up on May 19 to assess the performances of Fayemi and his Osun State counterpart, Rauf Aregbesola.

He said Fayemi’s performance was assessed in education, healthcare, wealth creation, infrastructure, civil service, governance, regional integration and water supply.

Odegbami said on infrastructure, the Fayemi administration had rehabilitated and built almost 1,100 kilometers of the 1,334 kilometers federal and state roads in Ekiti.

He described Ekiti as “one state in Nigeria where all the intra-city roads are passable without a bumpy ride”, adding that the Fayemi administration had inaugurated several rural and urban electrification projects.

Odegbami described the in-

•Lists governor’s achievements vestment in the Ikogosi Warm Spring Resort as “transformational”, saying the tourist centre is believed to be one of the best in the country.

He said besides paying West African School Certificate Examination (WASSCE) fees and reducing tuition in state-owned tertiary institutions, the panel was impressed by the massive renovation of public secondary schools and distribution if 41,555 laptops to teachers and pupils.

Odegbami said the investment in teachers’ welfare and training and other initiatives in the education sector earned Fayemi the award of SAMSUNG Governor of the Year for Education.

He said the provision of free health services to the vulnerable segment of the population has made healthcare accessible to the people and the ongoing renovation of General Hospitals “is a commendable effort toward lifting the health sec-

tor”.

Odegbami said the administration’s initiatives in the health sector led to 40 per cent increase in antenatal attendance and reduction of the infant mortality rate from 420 per 100,000 in 2010 to 135 per 100,000 in 2012.

He said vigorous pursuit of empowerment programmes

has helped the Fayemi administration’s wealth creation initiatives in agriculture, especially in cocoa and cassava production.

Odegbami said the establishment of skill acquisition centres, volunteer corps and the Youth Commercial Agriculture Development (YCAD) has led to the training of over 5,000 unemployed school leavers while 11,000 indigenes

have benefited from job creation and empowerment schemes.

He said the payment of N5,000 monthly to over 20,000 senior citizens was unprecedented in Nigeria.

Odegbami said Fayemi had increased the state’s Internally Generated Revenue (IGR) from N109 million to N600 million.

He hailed the governor for judicious use of state funds.

Edun hails Ikoyi-Obalende LCDA

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EADER of the All Progressives Congress (APC) in Ikoyi/Obalende Local Council Development Area (LCDA) of Lagos State Mr. Olawale Edun has praised the council’s Vice-Chairman, Mr. Olanrewaju Lanpejo, for empowering youths.

He spoke at the training of youths in the council on Information Technology.

Edun, who was the guest of honour, said the training would equip youths to solve future challenges.

By Innocent Amomoh

The one time Lagos State commissioner of Finance said one of the traits of good governance is the enjoyment of the dividends of democracy at the grassroots.

Lanpejo said the training was organised by the Lamp of God Foundation in partnership with the SpendWaiz Limited.

Lanpejo, who is the chief executive officer of the foundation, said over 200 youths will undergo six months training on network marketing.

He said at the end of the programme, participants would be given N5 million loan each, in three tranches, to start their own businesses.

The loan would be repaid in 60 months. The programme will provide online tutorial for secondary school pupils.

Lanpejo said 300 farmers, artisans and traders would be given with monthly allowances.

SpendWaiz Limited CEO Femi Akomolede said the platform is an extra learning platform for secondary school pupils.

Oyo, UPDC to rebuild govt quarters

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•Senator Oluremi Tinubu (middle) chatting with the Secretary to the Lagos State Government, Dr. Idiat Adebule (left), at the eighth-day prayer for Dr. Adebule’s mother, Alhaja Asia Alape-Idowu-Esho, at L.A Primary School, Iba, Lagos....yesterday.

With them is former Lagos State Deputy Governor Princess Sarah Sosan.

PHOTO: OMOSEHIN MOSES

PenCom: Lagos issues N18.9b retirement bond

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HE National Pension Commission (PenCom) has said Lagos State has fully implemented the Contributory Pension Scheme (CPS).

It said Lagos issued N18.9 billion retirement benefit bonds to its workers.

PenCom’s Acting DirectorGeneral Mrs. Chinelo AnohuAmazu broke the news at the weekend in Lagos.

She said Southwest states were playing a lead role in caring for pensioners and preparing for retirement.

Mrs. Anohu-Amazu said bonds issued by Lagos State

By Omobola Tolu-Kusimo

had been fully redeemed and proceeds paid into the employees’ individual Retirement Savings Account (RSA), adding that as at last month, 2,242 employees had retired under the scheme.

She said Lagos had implemented the CPS with 45,730 employees registered and pension contributions of N46.5 billion remitted as at July.

Mrs. Anohu-Amazu said Ogun State had registered 24,902 employees and remitted N10.9 billion as pension contributions. She said N3 billion

had been remitted into the Retirement Benefits Bond Redemption Fund Account held at the Central Bank of Nigeria (CBN).

Ogun is yet to implement the Group Life Insurance policy for workers.

Osun has registered 45,106, remitted N4.15 billion pension contributions and N1.9 billion into the Retirement Benefits Bond Redemption Fund Account.

It is yet to renew the Group Life Insurance Policy in 2013 and has not evaluated the accrued pension rights of employees.

Mrs. Anohu-Amazu said: “Ekiti State has registered 37,676 employees and conducted an actuarial valuation to determine pension liabilities under the old scheme and put in place Group Life Insurance Policy for its employees. It is yet to remit pension contributions into employees’ RSA with PFAs.” She said Ondo State had only drafted a bill while Oyo State enacted the law in January, 2010, but was yet to implement the CPS. She urged states that have not fully implemented the CPS to do so.

Seven Ibadan communities urge INEC to create polling centres

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ESIDENTS of seven communities in Ibadan, the Oyo State capital, at the weekend urged the Independent National Electoral Commission (INEC) to create polling centres in their areas.

The communities, which are all in Ido Local Government Area, have a population of over 15,000 people.

The residents said many of them did not register or vote during the 2011 elections because there were no polling centres in the communities.

Speaking at the inaugura-

From Oseheye Okwuofu, Ibadan

tion of a new executive of the Ifesowapo Group of Seven (G7) Community Development Association, Akuru, Ibadan, the association’s Chairman, Prince Adeyemi Adetoye, said despite the strategic location and population of the communities, they had no polling centre.

Adetoye said some residents had to trek for over five kilometres to get to the nearest polling centres during the last election.

He said: “For the people to discharge their civic responsibilities, the government must provide needed infrastructure, such as polling centres, hospitals, police stations, good roads etc. It is really sad that all of these were not provided. INEC must provide polling centres, so that the people can vote.

Many were disenfranchised during the last general election and we do not want such to repeat itself. So, we are calling on the government to rise up to its duty to the citizens.

“Our roads, from Yidi, off

Elebu Road, through EletaDada Shopping Complex; Sanusi Street–Olusetan; Circular Road in Orire Estate; from D Rovans off Elebu, through Olusetan Ajila and Asanpa Oluwo should be constructed to boost economic activities.”

Adetoye said the communities need a health centre and are willing to provide land to the government for it.

He hailed the urban renewal and transformation programmes of the Governor Abiola Ajimobi administration and Ido council chairman.

HE Oyo State government has partnered UPDC Plc, a subsidiary of UAC Nigeria, to rebuild government residential quarters in Ibadan, the state capital, into luxury apartments under a Public Private Partnership (PPP) arrangement.

Forty-five housing units in Quarters 790, 791, 792 and 793, covering 2.035 hectares on Oba Biladu III Road, Agodi GRA, will be developed in two phases.

The first phase will cover 26 housing units and the second 19. The project is to be completed in 12 months.

Commissioner for Information and Orientation Taiwo Otegbeye told reporters at the week-end that on completion, the project would generate about N2.535 billion revenue.

He said GRAs across the state would also be redeveloped.

Otegbeye said each apartment would be equipped with modern facilities, such as fire detection and fire fighting equipment, imported fully-fitted kitchens, fire and burglary alarm system, digital satellite TV system, external CCTV system, luxury sanitary wares, en-suite rooms, marble floors, decently paved walkways and a green environment, among others.

He said the government had amended the State Road Traffic Management Authority Law 2009 to include the establishment of a Director of Motor Vehicle Administration, adding that, henceforth, traffic offenders would be tried at magistrate’s courts.

Osun bans military clubs in schools

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From Adesoji Adeniyi, Osogbo

HE Osun State government has banned military clubs and training in public secondary schools.

In a statement, the Secretary to the State Government (SSS), Alhaji Moshood Adeoti, said the ban became imperative because the Army complained that some cadets, dressed in army green uniforms, were involved in criminal activities.

The National Cadets Corps was established in 1961 to train secondary school pupils on minor regimental activities.

Hawkins, ex-minister for conference

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By Precious Igbonwelundu

NITED States (U.S.) Ambassador to Nigeria Jeffery Hawkins, former Health Minister Prince Adeluyi Adelusi, Kenya’s High Commissioner Tom Amolo and Director of the Lagos Business School (LBS) Prof. Pat Utomi will speak on Friday at a leadership conference organised by a group, the Great Alpha, at the Eko Hotels.

The conference, themed: “Effective leadership: An imperative to national development”, is part of activities marking the group’s 50th anniversary.

The Great Alpha is an assemblage of both alumni and students of the University of Nigeria, Nsukka (UNN), who have exhibited excellence in academics and character.

Police warn vehicle owners

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HE Ogun State Police Command has warned owners of accidented and abandoned vehicles parked at Owode Egba Division to remove them or lose them to the public through auction after 14 days of this publication.

They are Toyota Hiace bus marked AX149KRD; Mercedez Benz AA300GGE; Faragon Volkswagen unregistered; Leyland Truck XA433JUT; Leyland Truck XH165EPE; Mack truck XM33AKD; Mercedez Benz 200 AM501AKD; Toyota car AA674SMK; Mercedez Benz unregistered; Escudo Jeep V.6 AP224LSD; Nissan AR232FKY and Mitsuibishi Lancer AQ166FFA. Also 37 motorcycles of all brands with three scraps.

Also, in Lagos Command, Owutu and Ojodu Divisions BMW 320 BC568FKJ; Honda AE29KTG; Volkwagen XF936LND; Volkwagen BB144FKJ; Nissan Primera FP177EKY and Volkwagen Golf XB474WDE

THE NATION MONDAY, SEPTEMBER 23, 2013

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NEWS Group urges EFCC to probe Ondo council official

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GROUP, the Ondo Elders and Youths Amalgamated Forum (OEYAF), at the weekend, urged the Economic and Financial Crimes Commission (EFCC) and other anti-graft agencies to investigate allegations of financial impropriety levelled against a local government director.

In a petition signed by its Coordinator, Mr. Samuel Fanibe, and Secretary Joel Memuletiwon, the group urged the commission to probe the alleged financial scam perpetrated by the official in all the councils he had worked.

OEYAF said: “The need for your commission to beam its searchlight on the financial scandal committed by the director, who is one of the presidential candidates of the National Union of Local Government Employees (NULGE), became imperative in view of his ambition.

“It is pertinent to remind your commission that the official was one of the nine

From Damisi Ojo, Akure

senior workers in local government councils, who attempted to defraud the state, in collaboration with senior officers of the Ministry of Local Government and Chieftaincy Affairs, of N650 million through last years’ leave bonus.

“He has been involved in various alleged frauds in all the councils he had worked. He has acquired assets worth several millions of naira. He has three sprawling hotels at IkareAkoko, Owo and Ore. “He also has four hostels at Akungba-Akoko and three around the Federal University of Technology, Akure (FUTA). He has 14 houses rented out in various locations in Akure.

“He also has over N150 million in various bank accounts with fictitious names. We urge the EFCC to probe the official and pledge to provide it with documents and other materials that will further expose him.”

Ekiti gets enlarged SUBEB board

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KITI State Deputy Governor Prof. Modupe Adelabu has inaugurated an enlarged State Universal Basic Education Board (SUBEB).

The board includes representatives of the Nigeria Union of Teachers (NUT); Parent/Teacher Association (PTA); Association of Primary School Headteachers of Nigeria; and ministries of Justice; Education, Science and Technology.

The deputy governor said the enlarged board would to promote efficiency in the administration of basic education.

•Ogun State Governor Ibikunle Amosun flanked by Mr. Kayode Ademolake (right) and the representative of a contractor during an inspection of ongoing work on the Ijebu-Ode flyover...at the weekend.

Fashola urges youths to be self-reliant

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AGOS State Governor Babatunde Fashola at the weekend said Lagosians spend over N36 billion on parties annually.

Fashola spoke at the fourth edition of the Lagos Ignite Enterprise and Employability project, a youth empowerment programme organised by the government and the Afterschool Graduate Development Centre (AGDC).

He said the figure was arrived at after a thorough study of the Lagos party life in five local government areas, including Agege, Mushin, Ifako-Ijaiye and Ikeja.

Fashola said the government discovered that about N3 billion was spent on 1,555 parties in the councils annually.

Urging youths to tap into the investment opportunities

•Lagosians spend N36b on parties •’Nigerian market unexploited’

By Miriam Ekene-Okoro

by providing goods and services for such occasions, he said: “We did a study between last October and November in Agege, Mushin, IfakoIjaiye, Ikeja and another local government. We studied Thursday, Friday and Saturday nights, three days every week for four weeks, which was 12 nights.

“In 12 nights, 1,555 parties were held in those local governments. About N1.2 billion was spent on drinks, food and other engagements during such parties. When we disaggregated them, we saw how

much went to DJ, MC, food and drinks.”

The governor said clothes worn at such parties, popularly called Aso-ebi, cost, at least, N1.2 billion monthly, saying the market is huge and should be tapped into.

Urging youths to look beyond white collar jobs, Fashola explained the huge opportunities in refuse collection and provision of rest rooms at events.

He said: “Some people have become very smart. They saw the money in refuse. They are PSP operators today and they employ people, own trucks and get loans from banks

from carting away refuse.

Some of us say refuse is dirty but they will tell you another story. The way we choose to manage our refuse is a cultural problem and that is what Europeans have done differently.

“The market is still very big and if you can envision it, you can do it. The possibilities in the Nigerian market have not been fully exploited. It is for you to decide whether you want to get your hands dirty like the late Otunba Gadaffi of DMT toilets or you want to sit in your house and tell yourself that well, you have just finished school and you do not want to rumple your tie, so you are looking for a job. The solution to unemployment in Nigeria is in three simple words: “Made in Nigeria”.”

ICT critical to growth, says Aregbesola

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T was a weekend of multiple laurels for Osun State Governor Rauf Aregbesola as he clinched three awards for his innovation in Information Communication Technology (ICT), education and governance.

On Saturday, Osun was awarded the Best ICT State for 2013.

The Opon Imo (tablet of knowledge) introduced by the Aregbesola administration, was awarded Africa’s Most Innovative Telecoms Product of the Year by the Nigerian Telecoms Development at the Incubator Events Centre.

Aregbesola and his Katsina State counterpart, Alhaji Shehu Shema, got the Social Responsibility awards of The SERAs at its Seventh Annual Award, held at the Shell Hall of the MUSON Centre in Onikan, Lagos.

In his acceptance speech, Aregbesola said without ICT,

it would have been difficult for his administration to provide text books for the over 150, 000 pupils in public schools.

He said it would cost N4.5 billion annually to provide three text books for 150,000 pupils.

Aregbesola said the Opon Imo, which contains textbooks on all subjects, cost the government N250 million for the 150,000 pupils.

The governor said ICT is the future of today’s world and people must begin to make the best use of it, adding that young people should be exposed to the infinite potentials of ICT. He said: “I have always tried not to miss an opportunity to apply it wherever and whenever I can to improve my situation and that of the people around me. Since I became governor in 2010, I gave an important place to ICT in the

way government is run.

“One of the first areas of ICT deployment was revenue reform. Our administration discarded the old payment system and tax administration, which were fraught with leakages and loopholes that were exploited to divert revenue from the state’s coffers.

“The result was instant and stunning. Our monthly Internally-Generated Revenue (IGR) jumped by 100 per cent from N300 million to N600million in less than one year.

“We have consolidated on our public finance reforms by deploying an ICT-driven revenue and taxation management system – The Osun State Government Electronic Banking System of Revenue Cycle Management (OSSG-EBSRCM). This system allows for online Direct Bank Lodgment System (DBLS) of revenue.”

Forum advocates national conference

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GROUP, the Yoruba Unity Forum, has supported calls for a national conference, saying it will facilitate solutions to the nation’s problems.

In a statement by its Secretary General, Senator Tony Adefuye, the group said: “The crisis pervading very important aspects of our national life should be of utmost concern to all patriotic Nigerians because it portends danger and unimaginable consequences for the country, if not addressed.

“For example, the insecurity in the North, which was originally confined to the Northeast, has spread to parts of Northwest and North-central states. Our public universities have remained shut for over two months without any planned date to resolve the contentious issues raised by the Academic Staff Union of Universities (ASUU). The factionalisation in the ruling party has become a threat to peace and security in some states. Labour unions and the National Assembly are at log-

gerheads over the proposed removal of the national minimum wage from the exclusive legislative list.

“Solutions to these issues can only be found through a national dialogue. It is against this background that we hail Senate President David Mark for speaking the minds of Nigerians, when he called for a national dialogue while welcoming senators back from vacation.

“This call, coming from the third highest political office holder in the country, cannot be wished away or ignored. As the country moves towards the precipice, the Yoruba Unity Forum has come to the conclusion that our rescue lies only in the convocation of a national conference, which shall provide an unfettered platform for Nigerians to negotiate and agree on the terms of living together on the basis of mutual respect and trust.”

The forum urged President Goodluck Jonathan to convene a national conference not later than December.

THE NATION MONDAY SEPTEMBER 23, 2013

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CITYBEATS

Ikoyi Club begins celebration today

By Innocent Amomoh

PRESIDENT Goodluck Jonathan is expected to flag off the 75th year anniversary celebration of the Ikoyi Club 1938 which begins today in Lagos.

The Vice Chairman of the club, who doubles as the Chairman of the Anniversary Sub-Committee, Yomi Orenuga, said the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, would deliver the Anniversary Lecture titled, "An Enduring legacy."

He added: "The 75th anniversary represents the celebration of a gift that has endured - our club, our values and our pride. The Club was born through a merger of European Club and Lagos Golf Club.

Through careful nurturing and the breaking down of artificial boundaries of segregation, the club, which started as an assembly of largely expatriates, civil servants and members of the business community, has blossomed into a study in inter-racial and inter-ethnic relations."

Among the events lined up for the celebration are: health talk, Elders' Day, Cultural Evening, Children's Party, Disco Evening for the junior members and Jazz music.

The events will end on Sunday with a variety show and presentation of prizes.

"Ikoyi Club 1938 consists of men and women of different ethnic origins, nations and diverse callings in top echelons of their organisations. We occupy 456 acres of land and providing recreation facilities for about 10,000 members with eight sporting sections including swimming, golf, tennis, table-tennis, squash, badminton and others," Orekoya said.

Miss Agriculture unveiled

By Daniel Popoola

PREPARATIONS to stage Miss Agriculture Beauty Pageant are in full swing, the organiser of the event, Aplus Global Entertainment, has said.

The National President of the Performing Musicians Association of Nigeria (PMAN), Hajia Amina Dangaji, said screening had been scheduled to take place later in the month in Abuja and Makurdi for North Central; Calabar, Port Harcourt and Benin for SouthSouth; Enugu and Owerri for SouthEast, and Akure, Ibadan and Lagos for the South West.

The star prize is a brand new customised car and modeling contract, while the first and second runners-up will go home with consolation prices.

A co-organiser, Jerry Nwachukwu, said: "Our mission is parading on the finest women and will crown one of them as The Face of Miss Agriculture who will be saddled with the responsibility of promoting and marketing the agricultural virtues of the organising company, both nationally and internationally."

The winner, he said, will be Nigeria's representative on the world stage of the Miss Agriculture contest in the United States of America. "Our target is to use the platform of the pageant to renew our hope, create a new face for our nation and rekindle our spirit and belief that although Nigeria is walking at the moment through the valleys of pains and discomfort, surely this moment shall pass away someday," he added.

Church holds crusade THE Mountain of Fire and Miracles Ministry (MFM), Otun Zonal Headquarters, Otun-Akute, Ogun State, will between September 27 and 29, hold a three-day deliverance crusade. Its theme is: Destroying Satanic Embargo and takes place 5 pm daily on Otun open field, Abule.

By Miriam Ekene-Okoro

THE NATION MONDAY, SEPTEMBER 23, 2013 CITYBEATS LINE: 08023247888

Man loses N8m to fake cleric

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HOUGH Isiaka Yusufu Adeleke holds an Ordinary National Diploma (OND) certificate in Business Administration from the Kwara State Polytechnic, Offa, he seems not believe in toiling for a living.

His desire to get rich quick, which led him into swindling people under the guise of being a Muslim cleric, has landed him in police custody.

His clients, according to sources, are people with various problems who seek his prayers for solutions. They include: People in dire need of quick money; those who want their money doubled; barren women; desperate visa applicants and Green Card seekers.

It was gathered that his victims paid between N200,000 and N400,000 for his services.

Luck ran against him recently when he attempted to defraud one of his friends of 50,000 dollars under the guise of attempting to "double" the money for him.

Adeleke was arrested by operatives of the Special Fraud Unit (SFU) of the Nigeria Police following a petition sent to the Commissioner of Police, Mr Tunde Ogunsakin, by the victim.

The victim alleged that sometime in March, he took a loan facility of N8million in dollars, with the intention to buy a truck to facilitate his business.

SFU's spokesperson, Ngozi

By Jude Isiguzo

Isintume-Agu, a Deputy Superintendent (DSP), said: "Having trust in the clergyman, who was said to be his childhood friend, he approached him for prayer and blessing for business success. The suspect commended his wisdom and instructed that he should bring the money for seven-day special prayers to Allah.

"The complainant obeyed as instructed and gave the N8million to the so-called Alfa, only to come back after seven days to discover that the Alfa had relocated to Ilorin and switched off all his contact phone numbers.

The complainant further stated that the Alfa, under the pretence of selling a Lexus 300 car imported from USA to him, obtained additional N1.5million and later registered the said vehicle in his (Adeleke's) name.

He alleged that the total money he took from him is N9.5 million and that the suspect used his money to build a four-bedroom flat and bought two cars (Mercedes Benz/Toyota Camry) within five months."

Ilorin, Kwara State-born Adeleke, 34, who is married with two wives and four children, has been arrested and police say he has made a useful statement.

Adeleke confessed that he tricked his friend into believing

Abortion is evil, says Catholic bishop

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Terry G, Wadada for talent hunt

that he could double the money, adding that he instructed that the money be put in a "spiritual box" in the victim's room, but unknown to him, he (Adeleke) had a spare key to the box.

The suspect also admitted that he used part of the money to buy cars and complete his building project in Ilorin, while he shared the balance among his accomplices - fellow fake Alfas based in Ila-Orangun, Osun State.

He sought forgiveness and promised to refund the money.

On how he took the money from the box inside the suspect's room, Adeleke said: "I went to his house and he was outside resting. After discussing with him for some minutes, I went inside. I was still talking with him from there until I got into the room where the

•Adeleke

money was kept. I opened the box and took the money."

Adeleke claimed that a few days after he took the money from the box, the victim came to him and complained that the box was disturbing him. He said he advised him to throw the box into a big river, adding that he made him to believe that the money was still inside the box when it was thrown into the river.

Isintume-Agu said investigation is ongoing, adding that the suspect would be arraigned in court soon.

Ogunsakin, therefore, advised the public to be careful when seeking spiritual help from religious clerics, describing many of them as wolves in sheep's clothing.

Lagos moves against illegal lottery operators

By Dada Aladelokun, Assitant Editor

HE Catholic Archbishop of Lagos, Most Rev. Dr. Alfred Adewale Martins, has restated the opposition of the Catholic Church to abortion. The cleric, who spoke at the 2013 edition of the Annual Vigil on Reparation for Abortion held at the Lagos Archdiocesan Marian Shrine, St. Agnes Catholic Church, Maryland, Lagos, declared that the right of man to life comes from God and it is inalienable.

Martins said: "I consider it a serious duty for parents and those in charge of teaching young people to communicate to them the gravity of ending a human life for any reason whatsoever and the irreparable harm done to the innocent who is put to death through abortion.

"It is a credit to our country that to date, the civil society and political authorities have withstood the mounting pressure to legalise abortion. Our country's laws recognise the right of the unborn to

‘I was still talking with him from there until I got into the room where the money was kept. I opened the box and took the money’

•Archbishop Martins

live and be born. Yet, we must remain alert to the threats to overturn this situation by proponents of abortion who disseminate incomplete information".

At the event which was jointly organised by the Knights of Saint Mulumba (KSM), Lagos Metropolitan Council and the Marriage, Family and Human Life Unit of the Catholic Archdiocese of Lagos, the Keynote Speaker, Rev. Fr. James Olubiyi, noted that only chaste living can permanently reduce the rising number of abortions and foster respect for the human dignity of all men, women, children and the unborn.

HE Lagos State Government has vowed to clamp down on illegal lottery operators in the state, adding that government would prosecute any person or group caught in the act.

The General Manager/Chief Executive Officer, Lagos State Lotteries Board, Lanre Gbajabiamila, gave the warning at the 2013 Stakeholders’ Summit - The Gaming Business: Expanding the Reach and Generational Imperatives - held at the Protea Hotel, Ikeja.

He stressed that all operators of lottery and gaming willing to do business in the state must first register with the lottery board to legalise their operations.

"There is no hiding place for illegal lottery operators. They should come to the board to legalise their operations. We need to work handin-hand with them and we must get illegal operators out of businesses," he stated.

The Special Adviser to the Governor on Taxation and Revenue, Bola Shodipo, said lots of potentials abound in the gaming industry waiting to be harnessed, saying that during the last Olympics held in London, millions of pounds were made through gaming.

By Miriam Ekene-Okoro

He said: "There are lots of revenue accruable in the industry, but today in Nigeria, we are still scratching it in the head. It is an employmentgeneration industry; it gives money to the government in form of taxes. It is a billion-naira-spinning industry.

"The industry is not alien to us; it is just that we are not organised. We are here today is to jaw-jaw and learn from people that have the wealth of experience and see how we can put them together for the benefit of all.

"Everyone has a tendency to do whatever he or she wants if there is no law. The best thing to do is to create enabling law to regulate the industry which we have done. We have created an agency to be responsible for this and the agency is the lottery board. We need to benchmark ourselves with the greatest operators in the industry."

Shodipo said if lottery operators failed to operate under set laws, "we may suspend, revoke license or prosecute them."

Guest speaker and Managing Director, Turfsport, South Africa, Gail Petrie, said operators must operate with proper business principles that enhance transparency.

By Ovwe Medeme

MAVEEBEST Link, in conjunction with Great Tower of God Ministry, is putting together a three-day talent hunt show aimed at discovering and honing the talent of budding artistes in various entertainment fields including comedy, choreography, rap battles, dance, disc jockey skills and singing.

According to the organisers, the hunt, which is targeted at young people, features guest artistes like Terry G, Brown Bread, Prince Wadada, Citizen Glory, Cindy, King Jahwin, Princess Stella, Heleno and Aita Bonny.

The event begins with a three-day rally slated for September 26 and 27, while the grand finale takes place at First Africa Church Mission, Iju Ishaga.

• From right: Chairman of All Progressives Congress (APC), Lagos State, Chief Oladele Ajomale; Commissioner for Tourism and Inter-governmental Relations, Mr Bosun Holloway, and the Managing Director, Nars Ltd, Apapa Amusement Park Concessionaire, Mr Ibrahim Heidel, during the contract signing of the project

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THE NATION MONDAY, SEPTEMBER 23, 2013 CITYBEATS LINE: 08023247888

Suspect allegedly buys 80 stolen cars •'Swindles' accommodation seekers A MAN, who allegedly specialises in buying stolen cars and duping accommodation seekers, has been arrested by the police.

Kayode Haruna, 40, is accused also of being the sponsor of a deadly armed robbery gang that specialises in robbing smugglers of their money and fairly used (tokunbo) vehicles at the border.

He was tracked down by operatives of the Special AntiRobbery Squad (SARS), Lagos State Police Command, at his construction site near Ojo Military Cantonment on July 15 at about 3.10 pm while supervising his workmen.

The police, it was learnt, had been on his trail over cases of armed robbery, car snatching and fraud.

Haruna was said to have gone into hiding after allegedly buying and selling over 80 stolen fairly used

By Ebele Boniface

cars and used 80 per cent of the money to invest in building houses.

The police said most of the houses he built were put up for rent, but most prospective tenants got no apartment as he spent their money on new buildings in other parts of Lagos.

A source said the suspect went on break when most of his gang members were either arrested and sent to prison or died in gun duels with the police.

Haruna was tracked down when SARS operatives led by Abba Kyari, a Superintendent (SP) arrested a person who bought a blood-stained stolen Toyota Camry car marked MUS438AG and he was traced as the seller. A Highlander Sports Utility

Vehicle (SUV) marked SMK 112 AR was also recovered from Haruna.

Haruna, who said he hailed from Itawure village, Ilorin, Kwara State, is married and has four children. He claimed to have studied Building Engineering at the Yaba College of Technology, Lagos.

He said: "I am here because I bought stolen vehicles. The cars and jeeps I bought are not up to 80 as police are making people to believe. The stolen cars I bought are 30 - about 15 cars and 15 SUVs. I like Toyota Corolla, Toyota Camry and Highlander cars because one can easily get interested buyers. I like tokunbo cars and jeeps because I can easily lie to prospective buyers that they were vehicles seized by Customs men."

On how he secured papers for the vehicles, Haruna mentioned Mr

CITYBEATS

Uba who he did not identify further and said each car's particulars cost him N20, 000. "If they (robbers) get vehicles, they call me on phone to meet them in a hotel at Mowe Ibafo, Mile 12 or Egbeda. I would pay before carrying the vehicles.

At times, I bought Muscle Camry for N1 million and sell for about N1.5 million, while market price is N2 million. I sold Muscle Camry to a Bale at Shasha, but the car was blood-stained. I also sold one car to Mr Kunle, my regular customer," he said, adding: "I bought my Toyota Envelope car for N1.2 million from a genuine car dealer to avoid police embarrassment."

Confessing to the alleged accommodation fraud, he said: "I can rent one flat to 10 people without stress."

If released, Haruna would like to change because he wants "to make heaven."

•Haruna

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THE NATION MONDAY, SEPTEMBER 23, 2013

NEWS

Jonathan, Obama to meet in New York

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RESIDENT Goodluck Jonathan who arrived in New York early yesterday ahead of the 68th session of the United Nations General Assembly (UNGA) will meet United States President Barack Obama today.

The 2015 election, the energy sector and Boko Haram crisis in Nigeria will top the agenda of the meeting.

Jonathan was received by the supervising Minister of Foreign Affairs, Prof. Viola Onwuliri, the Nigerian Permanent Representative to the UN, Prof. Joy Ogwu and the Nigerian Ambassador to the United States (U.S.), Prof. Ade Adefuye.

Dr Jonathan was later received at the city centre by the Minister of State for Works and the supervising Minister, National Planning Commission, Alhaji Bashir Yuguda, the Minister of Agriculture, Mr Akinwumi Adesina and Ondo State Governor Olusegun Mimiko.

He is expected to hold five bilateral meetings that will cover the EU, Slovenia, Sri Lanka, Lebanon, and Trinidad and Tobago.

President Jonathan will be among the four world leaders and the first African leader to address the UN General Assembly.

He will speak after the leaders of Brazil, U.S. and Turkey.

After the President’s address, Yuguda will chair the side event, organised by the Leading Group of Innovative Financing for Development, a global body which has 63 member-nations and several international non-governmental organisations (NGOs).

2015: ‘APC bringing change to Nigeria’ From Osemwengie Ben Ogbemudia, Benin

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OUSE of Representatives’ Minority Whip Samson Osagie has urged Nigerians to defend the change coming to the nation through the 2015 presidential election.

The All Progressives Congress (APC) chieftain spoke at the 60th birthday of the Political Adviser to Edo State Governor, Chief Charles Idahosa, in Benin, the Edo State capital.

He said: “Nigeria needs change and APC is the symbol of change.

And we are hoping and working hard to ensure that in 2015, the much-needed change will come our way and Nigerians will be better for it.”

The birthday anniversary, which began with a church service at St. Peter’s Anglican Church, Benin City, was attended by Edo State Deputy Governor Pius Odubu; the Iyase of Benin Kingdom, Chief Sam Igbe; Senator Ehigie Uzamere, Samson Osagie, Rasaq Bello-Osagie, Edo State House of Assembly Speaker Uyi Igbe.

Aba South teachers protest over N5.8m pension fraud

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EACHERS in Aba South Local Government Area of Abia State have appealed to the national leadership of the Nigerian Union of Teachers (NUT) to intervene in the crisis between the local government and the state union.

Over 200 teachers in Aba, at the weekend,protested an alleged fraud in the N5.8m Teachers’ Retirement Scheme (TRS) contributory fund.

The teachers are also angry over the suspension of their chairman by the state caretaker committee chairman, appointed by NUT. They threatened to go on strike, if their demands were not met the national body.

Their leader, simply identified as Rose, said teachers have been contributing N500 from their monthly pay since 2002.

She said in 2010, at their quadrennial conference in Abia, delegates increasead the

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HE Federal Government has said 80 per cent of foreign registered private jets flying in Nigeria are engaged in “illegal” operations.

The government said such jets do not pay the relevant taxes and charges to aviation agencies, including the Nigeria Civil Aviation Authority (NCAA).

A data released by the Federal Airports Authority of Nigeria (FAAN) showed that of the 139 private jets operating in Nigeria, 87 were registered overseas while 52 were registered locally.

FAAN’s General Manager, Corporate Communications, Mr Yakubu Dati said the gov-

By Kelvin Osa Okunbor

ernment was worried about the increasing number of foreign registered aircraft used as private jets.

Dati noted that when an aircraft is registered overseas, it is assumed that it is visiting Nigeria.

He said this exempts it from paying relevant taxes and charges, including import duty, which is denying government of relevant revenue.

Dati said private jet owners should desist from such illegal operations to enable the government harness the huge revenue potential from commercial charter jets.

He said the government would sanction owners of such private jets, adding that their practice was at variance with the new civil aviation regulation.

The FAAN’s spokesman said Nigerians who own foreign registered private jets siphon over $10 billion annually from the country to pay foreign cockpit crew, charges and taxes.

According to him, Nigeria loses $15 billion yearly to such operators.

He said the money includes charges paid by chartered aircraft, adding that the operators illegally deploy the aircraft when they are not being use in the country.

Ex-Rep condemns National Assembly over PDP crisis

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FORMER member of the House of Representatives, Chief Uche Igwesi, has berated the National Assembly’s leadership role in the Peoples Democratic Party (PDP) crisis.

He noted that the National Assembly leadership erred by allowing the Kawu Baraje-led faction into the complex, which led to a rowdy session at the House.

The former House member said the National Assembly was created for national discourse and not for party politics.

In a statement, Igwesi de-

scribed the visit of the Barajeled faction as a “complete distraction from legislative business”.

He noted that since the National Assembly was made up of various parties, issues pertaining to any party should not be entertained on the floor of a multi- party legislative house.

Igwesi wondered why the Baraje-led faction would go to the National Assembly after a truce was believed to have been brokered with the Presidency.

He warned the faction to de-

sist from being used to further destabilise the party.

The former Leader of the Enugu State House of Assembly attributed the crisis in the ruling party to the struggle for power in 2015.

According to him, only God can choose leaders.

The former lawmaker urged the various factions to sheathe their swords and re-unite as a family.

Igwesi attributed the crisis in the PDP to the struggle for power in 2015, adding that power and other promotions are divine matters.

He advised politicians to play

the game with decorum and allow God to choose their leaders.

The politician urged the warring PDP groups to sheathe their swords and re-unite.

Igwesi hoped the PDP would come out of the crisis stronger and more united.

He said the PDP was used to crises and would resolve the present crisis.

According to him, the President should not lose focus or be distracted from his transformation agenda but to see the criticisms against him challenges that should spur him to serves the nation better.

•The protesting teachers wing of the NUT, which was responsible for the payment.

“Instead of paying the excesss, the state wing suspended her from office.”

The teachers, while urging the national body to wade into the matter, wondered why an appointed caretaker chair-

man should suspend an elected chairman.

The protesters also alleged that on August 12, 2013, the director of Finance, on behalf of the executive chairman of Abia State Universal Basic Education Board (ASUBEB), ordered the state wing of

NUT to refund the excess deduction from the salaries of teachers in Aba South.

The State Caretaker Chairman Chief Enoch Omeoga said his office just got to know about the teachers’ claims and needed time to ascertain their claims.

He assured that the teachers would be paid in full if their claims are genuine.

On the suspension of the Aba South chair of NUT, he said it was a directive from the national body, and not the state, as alleged by the teachers.

By Seun Akioye

Summit urges Southeast integration From Chris Oji, Enugu

Nnaji, who was the keynote speaker.

Participants urged the Southeast governments to arrest insecurity and devise strategies for security management as a pre-requisite to sustainable integration.

The summit called for support from the private sector, corporate organisations and governments to consider the media as an ally in the formation and execution of policies tailored towards the region’s integration.

Participants called for more media ownership by the people of the region.

Anambra poll: ‘Crisis won’t stop APGA’s victory’

HE crisis rocking the All Progressives Grand Alliance (APGA) will not stop the party from winning the election, a governorship hopeful, Dr. Chike Obidigbo, said yesterday in Awka.

He said impunity still dogs Nigeria’s democracy, despite assurances by the President, the Judiciary and the Inde-

Dati said: “These operators also abstain from paying import duties, five per cent VAT charges and also five per cent charges to the NCAA. Folowing such illegal operations by private jet owners, the NCAA has been mandated to slam a fine of $3,000 on every operation carried out by private jet on illegal services.

“The aircraft pilots and engineers must be foreigners whose licences are registered in that country the aircraft is registered. This means no Nigerian is operating any of these 87 aircraft as pilot; no Nigerian engineer can be employed to maintain the aircraft...”

From Sunny Nwankwo, Aba

amount increased the to N1,000, which was implemented byAba South and Isiala Ngwa North.

She, however, said as a result of the crisis in the state NUT, a caretaker committee was set up to manage its affairs.

The group leader noted that the amount was reverted to N500 by the caretaker committee, and despite representations to the national body Aba South had not received any refund from the excess deduction.

“Trouble broke out when some of us, who were due for retirement, went to collect the TRS money and they were paid based on the N500 contribution although N1,000 was deducted from September 2010 to September 2011.

“The irregularity was reported to our chairman, Mrs. Hope Ubani-Ukoma, who took up the matter with the state

EADERS of the Southeast states have agreed on regional integration for greater prosperity.

They regretted that the Southeast, which once set the pace for the economic integration of states in Nigeria, has lost this advantage to others, and canvassed a return to the region’s past glory.

The agreements were reached at the weekend at the second Nigeria Union of Journalists (NUJ) Southeast Media Summit in Enugu.

The summit drew participants from the region and beyond, including former minister for Power Prof. Barth

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‘80% foreign private jets’ operations ‘illegal’

From Nwanosike Onu, Awka

pendent National Electoral Commission (INEC) on a free and fair process.

Obidigbo’s reaction, followed the ruling of the Federal High Court in Awka, which recognised Willie Obiano as the APGA candidate for the

election.

He said: “The promise of credible, free and fair election by President Goodluck Jonathan has gingered in some citizens the desire to take part once again in elections.”

“However, it is regrettable that some of the negative practices associated with our electoral system

are still noticeable.

“Impunity is still a major challenge to the deepening of our democracy.

“We, however, urge our supporters to remain committed to APGA .

“Together, we shall rescue the party from mercantile operators and apostles of political wickedness.”

Obidigbo said.

•Ume

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MO State Governor Rochas Okorocha has appointed Mr. ChukwumaMachukwu Ume as the attor-

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Okorocha appoints Justice Commissioner

ney-general and commissioner for Justice.

Ume, a Senior Advocate of Nigeria (SAN), was a commissioner in the Judicial Service Commission.

He has authored books including: The Sentinel of Justice.

Ume will be decorated with the rank of Senior Advocate of Nigeria, today by the Chief Justice Justice Aloma Mukhtar. He has since assumed duty.

Anambra gets 30 ambulances

NAMBRA State has got 30 new ambulances.

Receiving the vehicles at the Governor’s Lodge at the weekend, the Commissioner for Health Dr. Lawrence Ikeakor said the ambulances had the full compliments of any modern hospital, as prescribed by the World Health Organisation.

He said the ambulances were purchased by the government for distribution to selected hospitals, public and missionary-owned, adding that the gesture represents the final push by Governor Peter Obi to achieve the Millenniun Development Goals.

THE NATION MONDAY SEPTEMBER 23, 2013

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COMMENTARY FROM OTHER LANDS

EDITORIALS

Where water is gold

Jonathan at NYSE

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• As the President rings the closing bell, he should remember the NSE back home

ATER today, President Goodluck Jonathan will step on the dais at the New York Stock Exchange (NYSE) to ring the closing bell. Although, he will be making history as the first Nigerian leader to play that role, he merely joins the long list of celebrities, show business personalities and other global leaders that have rung either the opening or closing bell at the world’s most prestigious trading floor.

Call it – if you may – a lifetime achievement for the Jonathan Presidency; too good to miss would be apt to describe the fleeting moment of that hyped appearance on the global stage. If merely for the extensive media coverage, not least the opportunity afforded the leader of the most populous African nation to deliver his message to, first, the Wall Street, and then the Main Street all around the world, the platform would still have been important by any standard.

That, however, is where the paradox lies. For much as the administration is wont to tout the outing as an achievement, it is hard to see any tangible benefits to the country or the economy, particularly as the world now has better tools to rely upon for market intelligence than the one-off marketing event of an appearance at the headquarters of global capitalism. It seems to us that the NYSE is, on balance, the ultimate beneficiary of the well-staged event through the opportunity afforded it to showcase the depth of their market and the vast accomplishments of the operators. The latter point is better appreciated in the background of

the growing pressure on some companies to get listed on foreign bourses.

The point is: we see no big deal in President Jonathan ringing the NYSE closing bell or the opening bell for that matter; that other global icons have made appearance at the bourse does not make it any more so. We understand the penchant by the Federal Government to begin its charity abroad; it is all part of the craving, or worse – the fetish – for foreign endorsements. The world surely knows the Nigerian economy better than the whitewash presented at such highoctane affairs.

Be that as it may, we can only use today’s occasion to remind the President and his team that the NYSE did not happen by accident. That it has evolved with time, maturing in the process and now to the point of transforming into a powerful magnet – drawing stars and leaders – is because of the abiding faith of the American investor in the promise of capitalism, and the strong institution put in place by the US government to regulate its operations. The bedrock is of course technology and innovation which not only power but deliver the competitive advantage to the US economy.

The story of the Nigeria Stock Exchange (NSE) of course presents an intriguing tale of the absurd. After the market hit the bottom in 2009, the nation’s expectation was of a revamped regulator – the Security and Exchange Commission (SEC) – primed to clear the mess. None of this has happened more than three years after. Instead, the team brought in

by the Federal Government to clear the mess did not come without courting its own share of controversies, which later snowballed into the extraordinary measure of defunding SEC by the National Assembly. Today’s event in New York should, hopefully, remind President Jonathan of that unfinished job of getting SEC’s appropriation restored.

We continue to make the point that any discussion on the state of the capital market without establishing its direct linkage with the overall economy would remain superficial. One lesson from the 2009 capital market bust-up must be in the understanding that both must go paripassu. The summary is that President Jonathan will do a far better job of fixing the critical enablers of the economy than the endless jamborees being staged in the name of courting foreign investors.

‘Today’s event in New York should, hopefully, remind President Jonathan of that unfinished job of getting SEC’s appropriation restored. We continue to make the point that any discussion on the state of the capital market without establishing its direct linkage with the overall economy would remain superficial’

To the rescue?

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•SA’s Famous Brands’ acquisition of 49% stake in Mr Biggs throws up exciting prospects in the fast foods business, but...

HE news that South Africa’s Famous Brands, a quick service and casual dining restaurant franchisor, is taking a 49 percent stake in Nigeria’s UAC Restaurants (UACR), which brand, Mr. Biggs, is the doyen in Nigeria’s fast food sub-sector, is both sweet and sour.

Sweet, because the new synergy may well hand Mr. Biggs, pioneers in the eatery sector boasting some 155 franchised restaurants in Nigeria and Ghana, a redemptive value. Mr. Biggs may be the largest food franchise brand in Africa outside South Africa and could well daily sell some 25,000 pieces of chicken in its eateries, but it appears it has been losing space to smaller and more nimble competition, despite pioneering business in that sector.

And sour because, for the umpteenth time, Nigerian businesses’ ability to sus-

‘ The news that South Africa’s Famous Brands ... is taking a 49 percent stake in Nigeria’s UAC Restaurants (UACR), which brand, Mr. Biggs, is the doyen in Nigeria’s fast food sub-sector, is both sweet and sour. Sweet, because the new synergy may well hand Mr. Biggs ... a redemptive value ... And sour because, for the umpteenth time, Nigerian businesses’ ability to sustain success in the long run, even when they manage niche products, is being called to question.

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tain success in the long run, even when they manage niche products, is being called to question. Just like indigenised conglomerates that went to seeds and had to be reacquired by their original foreign owners, Mr. Biggs would appear far from where it is supposed to be, the way it took the market by storm in its early days. If, therefore, Famous Brands’ partnership will give the brand a new lease of life, then it is smart business move.

Kevin Hedderwick, Famous Brands’ chief executive is upbeat about the deal, stating the mutual benefits for both parties: “UACR will be vending in a formidable brand (Mr. Biggs), local expertise and existing franchisees, as well as nationwide distribution network and Lagos-based manufacturing infrastructure,” he said. “In exchange, Famous Brands will add value to the business through our expertise in managing intellectual property, growing brands and optimising supply chain operations and efficiencies.”

On the other hand, Larry Ettah, managing director of UACN, parent company of UACR, seems to admit tough competition, talking of an influx, in the Nigerian market, of foreign and local quick service restaurant brands, insisting however that the new deal was predicated on changing demographics, which expects the middle class to increase from 30 percent of the Nigerian population (2009) to 35 percent in 2015. A good proportion of this target market is the young population, according to Mr. Ettah, with an average age of 18.

From the point of inter-African trade, the Mr. Biggs-Famous Brands business

collaboration is a cheerful prospect. For one, Mr. Biggs would need Famous Brands’ (owners of South Africa’s well known chains like Steers, Debonairs Pizza, Wimpy & Bean) brand building expertise and managerial acumen.

Though the arrangement is not quite clear, it would appear Famous Brands would manage Mr. Biggs eateries while UACN maintains the controlling shares of 51 percent in the business. For another, it would give the sagging brand a new lease of life. That is good for both parties, as well as for the consumers, assured of better service, as a result of fiercer competition.

But the down side is – and this is not just business nationalism – even more foreign interests are raiding the economy. That is not such a bad thing.

If they bring in new capital, that means they see in the Nigerian economy long term prospects, which should gladden the heart of Nigerians. But if they freely bring in capital, it is only fair that they freely repatriate their profit. Still, measures must be put in place to ensure that this very legitimate endeavour does not result in capital flight, at the slightest excuse.

Iconic Nigerian brands must also up their acts. If South Africans can invest heavily in Nigeria’s hotel and hospitality industry, and now the fast food eatery business, there is nothing stopping Nigerian brands too from being competitive enough to invest in other countries and repatriate their profit home.

That is the only way the much abused concept of globalisation would make sense.

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OME rare good news has offset the usual grim predictions about the planet’s dwindling natural resources. Kenya, one of Africa’s most important countries, has uncovered a potentially huge new water source. Now comes the challenge of managing it fairly and transparently.

The discovery, announced last week by Kenya and the United Nations, involves five aquifers in impoverished Turkana County that could mean a more secure future for the country as a whole. Of Kenya’s 41 million people, an estimated 17 million lack access to safe drinking water and 28 million are without adequate sanitation. The new underground sources, estimated to hold at least 66 trillion gallons, could be used for drinking, irrigating crops and watering livestock.

The project shows what can be done when responsible authorities work together. Identifying the aquifers was a joint effort of the Kenyan government and Unesco, with financial support from Japan, a major donor of international development assistance. Advanced satellite equipment and expertise from Radar Technologies International helped provide technical breakthroughs. Radar Technologies, a natural resources exploration concern, has confirmed two of the five aquifers through drilling, but further exploration at the other three sites is needed before experts can determine more precisely how much water exists and what it will take to extract it.

Kenya’s task is to figure out, with United Nations help, how to protect these supplies and tap them in ways that ensure they last for generations. Management needs to be fair and open, with clear limits on how much water can be extracted, how often and by whom. This may not be easy in a country with a history of corruption, and where the president and deputy president are facing trial by the International Criminal Court for crimes against humanity stemming from the 2007 presidential election.

Water scarcity is a huge problem globally, fueling competition among states, regions and tribes and sometimes leading to bloodshed. The Organization for Economic Cooperation and Development has estimated that by 2030 nearly half the world’s population will live in areas with severe water stress.

Kenya’s remarkable good fortune is a ray of hope in this otherwise gloomy picture.

– New York Times TRUTH IN DEFENCE OF FREEDOM Managing Director/Editor-in-Chief Victor Ifijeh

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THE NATION MONDAY, SEPTEMBER 23, 2013

CARTOON & LETTERS

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IR: I recently visited Toronto, Canada.On our way from the airport, I engaged my host in a discussion about the country in general. These are some of the insights: First was the deliberate plan of the Canadian government to discourage excessive wealth acquisition. How is it done? I probed.

Due to the transparency in the system, all monies earned are traceable. Therefore, the more money you make, the more the tax you pay. This made a lot of sense to me.

Wealth can easily be spread and too much affluence will not reside with few as we have in Nigeria.

As each day progressed, I learnt new things. I discovered that their housing system was well structured; my host enlightened me on their mortgage system. One deposits about 30% of the house value

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President Jonathan must hear this!

with interest rate of not more than 5% with credit receivable after five years. What that means is that you could sell the house after five years and use the credit to buy a bigger house if one desires. I discovered that cars are leased to buyers at interest free loan payable within 78 months.

I also learnt that people pay heavy tax but enjoy the value in the provisions of good road, free health care and education. There is legis-

lation for students to attend schools within a geographical axis they reside. The road network was super.

All roads tarred to the inner streets.

I was informed that routes are reconstructed if they observe too much traffic. Obedience to traffic law is sacrosanct as heavy penalties are paid or licence may be withdrawn. Water and electricity were working without any hitch.

On farming, we visited a family friend for barbecue dinner and

guess what, the corn we ate were all fresh and sweet from the farm nearby. When we were going to the beach about two hours drive from town, I saw farmlands running into miles operated by professional resident farmers who live on the farm with all good things of life. When we went to an eatery for lunch, I request to use the gents or toilet, the guy was lost until I explained further. He said, you mean ‘washroom’? You don’t say you want to

ASUU strike and FG’s war on education

IR: It is now about three months that the Academic Staff Union of Universities (ASUU) has been on strike, yet the government has refused to listen to the union. Rather than engage in good faith negotiations, the government has resorted to scare and diversionary tactics, calling the union’s bluff, and asking the striking lecturers to return to the classrooms. We believe that such diversionary methods smack of nothing but cheap blackmail.

It is instructive that while the government has refused to fully honour the 2009 commitments it made with ASUU, the government within the same given period had increased by almost 950% the emoluments of the at least 17,000 elected and appointed public officials at both the states and federal levels. These few individuals in a nation of 162.5million people earn over N1.4trillion, which is more than a third of the national budget.

By the same token, ASUU has not been quite focused and strategic in

waging this struggle. The union hasn’t been able to put the issues where they are hence the misconception that the struggle is all about the N92billion arrears in allowances owed members of the union. The real issue is government consistent refusal, year in, year out, to follow through on the release of funds for research and development of the universities.

Virtually, all of the public universities are in dire need of facilities, which includes buildings, technology tools, laboratories, science and engineering equipments, lecture theatres, libraries (especially digital libraries), constant electricity supply, et cetera. The government since the 2009 agreement owes the public universities N400billion arrears in funding for research and development.

There is also the question of how ASUU arrived at the N92billion arrears in allowances the government supposedly owed, for it is the management of the universities that can truly determine what the government owed and not ASUU,

because ASUU is not part of the management. Indeed, our investigations reveal that not all academic staff are entitled to the money in question; the money is meant only for some category of staff that work outside teaching, such as Heads of Departments, Supervisors of Masters and PHD students, Course Advisers and Exam Officers.

It is a sad truth that our government is yet to realise the importance of education in national development. A country that wishes to develop cannot do so without recognising the place of education and if this government really wants to make a difference, then it must radically begin to revolutionise its values and re-order its priority in so far as education is concerned.

In today’s world, to compete effectively and integrate successfully into the global economy, education must be given the top priority it deserves. Nations all over the world including neighbouring West African countries are fast re-

alising this, and Nigeria must be no different. This government has the rare opportunity to show that the security and welfare of the Nigerian people is its primary concern.

In the same vein, we call on ASUU to refocus the trajectory of the struggle by looking beyond the strike option, because if the only tool you have in your toolkit is a hammer, you would keep treating every issue as a nail. ASUU must adopt other strategies if it genuinely intends to win this struggle, and the union could begin to consider other options as marches, freedom-rides, Sit-ins and Campouts. Imagine what could have been achieved, for instance, if the union had staged strategic marches in six key cities of the nation, including Abuja and then, capped it all, with a Sit-in, at the Education Ministry and at the National Assembly Complex for just two to three weeks!

• Eneruvie Enakoko Conscience Reports, Lagos

use the gents (for men) or ladies (for women).

The few days spent in Canada set me thinking about the real essence of leadership and why our own leaders don’t see all these when they travel or refuse to implement them in our nation.

On my way back to Nigeria, the problem started from the airport as the Federal Airport Authority of Nigeria (FAAN) officials could not set bars for passengers to queue on a straight line. With the air conditioners not working, there was chaos. Anyway, we grumbled our way through immigration and waited again endlessly for our baggage to roll out of the conveyor belt. The custom men too harassed what is left of the tolerance in some of us.

By the time I got to Lagos-Ibadan expressway, the road I left bad a few weeks ago had gone worse due to rain and usage. I thought the contract for this road was awarded.

Couldn’t the contractor patch the bad portions and reduce traffic on this road? On getting home, there was no light, we had to start the generator to first pump water and enjoy electricity hence polluting the environment. I was seriously depressed and felt like selling all I have acquired and relocate.

As I was reflecting on my predicament, my friend who accompanied me from the airport said “ Agagu is dead”. Without much thought, two things about him flashed through my memory. What will Nigerians and people of Ondo State remember him for when he was minister for power and steel and governor?

Life truly is vanity. Agagu is gone but our President is still alive and can make the necessary change. This 2015 distraction is too much. It looks like a deliberate ploy for him to fail. Obasanjo gave us GSM, President Jonathan should give us light.

Remember, all you have is today.

Tomorrow is in God’s hand.

• Ayodele Kupoluyi Ogun State

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THE NATION MONDAY, SEPTEMBER 23, 2013

COMMENTS

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WROTE the article below several years ago on issues in the ruling People’s Democratic Party (PDP) during the chairmanship of Col. Ahmadu Ali (rtd) under the General Olusegun Obasanjo (rtd) government. For 14 years, the party has been ruling and reigning – sinking democracy and the peace and progress of the nation- all in desperation of holding on to power.

With what happened then and the ongoing destabilising crisis in the party, has the Bamanga Tukur leadership under President Goodluck Jonathan’s claimed transformation administration learnt any lesson? Has anything changed that can bring needed change to the society? Will an untransformed political party ever be able to transform a diverse nation?

This is why I’m re-publishing this un-edited piece: The People Democratic Party (PDP) is a rapidly unfolding disaster, enmeshed so deeply in internal contradictions such that, sooner than later, a major implosion will rip apart the massive but rickety political contraption. With the way things are going, it hardly can be otherwise.

The party has been so much militarized and robotized that even its civilian officials are now no more than political marionettes.

PDP emerged primarily to clinch power, not necessarily as a political party to further the course of democracy. Those who flocked into it did so mainly because they wanted to be part of the party in power at the centre. There was little or nothing about shared principle and philosophy or ideological compatibility. The basis of the foundation was more of sheer opportunism.

Then of course, the preponderance of retired military officers in the fold was a sure ill-omen of the eventual disaster awaiting the assemblage as a political party. Everything about the military is anathema to democracy. Unlike democracy, the military do not operate by consensus; rather, the military see politics as an adventure.

Hence, all their interventions in the nation’s governance have meant reversals of the good fortunes of the people.

This is to say that military’s adventures into Nigeria’s politics has been more of a curse than blessing; it has meant social dislocation and economic retrogression; it has also stunted the nation’s political evolution.

For this reason, the anarchistic tendency manifesting today in the nation’s body politic is so much in line with the

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S a form of greeting, the question was intriguing. Whenever Frank Olusola Macaulay asked, “How are you, today?” he laid an unmistakable stress on the word, “today.” That was his way of highlighting the reality of a new day, different from past days, filled with fresh possibilities. The greeting carried a spiritual import, saying to the recipient that the new day brought new grace, new hope, new strength, and new ideas, which could spark a new song and new joy. This unshakable conviction about the constant flux, conveyed through his emphasis on “today”, is a lesson for me.

This was the man who, in the 1970’s, took my younger brother, Olaolu, and I to see the old Lagos Prison in Broad Street, just before it was demolished, and asked us to write essays on our experience, promising to reward the better writer. We were in secondary school, and it was an eye-opener for us.

He earnestly believed that he would attain age 85, and always maintained that his faith was Biblesupported. “Ask, and you shall receive”, was his mantra whenever anyone questioned his projection of certainty about how long he would live. He celebrated every birthday by reminding his family and others of how many years he supposedly had left. But he died at age 83 on August 22, which was 24 days before his 84th birthday on September 16th.

Macaulay was born in Lagos in 1929. His grandfather, Frank Gurney Venn Macaulay, who raised him, was the younger brother of Herbert Macaulay, the famous Nigerian nationalist. He straddled the country’s colonial and post-colonial

‘His parting shot, from his notes, would be this quotation: “How do you beautify the Earth? You do this by the Good Thought, which comes from you, by the assistance you give your brother-man to rise materially and spiritually, and by the assistance you give other life than man to be more beautiful than you met it’

PDP’S garrison mentality military pollution rather than a necessary strain of a learning process. The ruling PDP has been so much militarized and automated that even its civilian officials are now no more than political marionettes.

It was little wonder then when the party’s National Chairman, Ahmadu Ali, a retired colonel, was only able to see the orchestrated political disruption in Oyo State in the light of his inflexible Zombie background. For him, the state was no more than a military garrison, where the rule is that of command-and-obey, - right or wrong. To stretch his reasoning, the elected Governor Rashidi Ladoja should have been taking orders from a political jobber in the cloak of a godfather called Alhaji Lamidi Adedibu.

More than anything, it is Ali’s kind of mentality that has been the bane of PDP’s politics – the very sort that is pushing it to the fast perilous lane of combustion and self-immolation.

Over time, the military has proven to be more adept at ravaging than constructing. So, when the reins of a political party in power is hijacked by those who are dictators by training and orientation, it amounts to sheer tomfoolery expecting to see anything different from the bastardization going on in the nation today. The mentality of the barracks is never one of civility that the people can identify and associate with; it is that of alienation, so strange to the common aspiration and the common good.

It therefore seems to suit the strategy of the military architects of the present dispensation – which was never intended to endure this long in the first instance, to evaluate nonentities and brigands that could easily become handy agents of disruption. Therefore, the emergence of political traders in the like of Chris Uba and Lamidi Adedibu, masquerading as godfathers, perfectly fits the garrison concepts of today’s politics.

To think that the same political terrain that once paraded an Obafemi Awolowo, deep and adept; a Malam Aminu Kano, honest and committed; an Nnamdi Azikiwe, first rate nationalist, has now yielded to political boneheads and bandits – smugly traversing the landscape! In civilized clime, godfatherism thrives as tolerable necessities to help further ideals and dreams for the overall betterment of society. The rich and the influential desirous of leaving positive footprints encourage, nurture and support the political ambitions of shared visions, without the principal motive of selfaggrandizement and personal enrichment! But here, the garrison mentality of the PDP has merely succeeded in throwing up anti-heroes and ego trippers.

It is the same mentality that has been pushing a party chieftain like Olabode George, a retired naval Commodore who bragged before the 2003 general elections that the PDP would capture the South-west. And truly, when the PDP caterpillar

rolled into action, it proved that winning an election was not in its political lexicon; it lived to its boast by capturing all ‘capturable’ states – largely by foul means.

2003 would go down as a year terrible political gale blew off electoral fairness and decency and enthroned mediocrity across the land. It, for instance, foisted an Ayo Fa(Oluwa)yose – an embodiment of brute force and rough tackles, on the hapless people of my Ekiti State. Well-heeled in the garrison philosophy, the bulky bully has had to dispense with two Deputy Governors in barely two years in office.

The same mentality encouraged Uba to unleash a region of terror on Anambra State, as soldiers recently did in Lagos when it invaded and torched the Surulere Police Station, Ojuelegba. For a man who made the sate ungovernable for its elected government, the PDP’s reward was to elevate him to the Board of Trustees. After all, it is in the nature of the barracks to harbour bulldozers which are unleashed to crush opponents.

It is also the same mentality that is currently at play in Ibadan where the unapologetic thug called Adedibu is the toast of the PDP hierarchy - including the presidency, openly hailed as the strongman of Oyo State politics when in fact he should be serving time in a cage. Both Uba and Adedibu see the money meant for the development of their respective states more as war booties that should be shared out to them in line with pre-election covenants they entered into. Their militarized party too, of course, sees nothing wrong in such demands – even when they are patently in sharp contradictions to the often-mouthed war on corruption.

‘It is also the same mentality that is currently at play in Ibadan where the unapologetic thug called Adedibu is the toast of the PDP hierarchy - including the presidency, openly hailed as the strongman of Oyo State politics when in fact he should be serving time in a cage.

Both Uba and Adedibu see the money meant for the development of their respective states more as war booties that should be shared out to them in line with pre-election covenants they entered into’

‘How are you, today?’

By Femi Macaulay eras and was, therefore, at a vantage to make comparisons. In this context, he often expressed his admiration of the English and wished that postIndependence Nigeria would not only sustain the positive developmental standards of the colonialists, but also improve on them.

He was born to a devout Christian family with a rich history of missionary work; his great grandfather was Rev. Thomas Babington Macaulay, founder and first principal of the CMS Grammar School, Lagos, the oldest secondary school in Nigeria, started in 1859; and his great grandmother, Abigail Macaulay, was the daughter of Rt. Rev. Samuel Ajayi Crowther, the acclaimed first African Bishop of the Church of England, and the first to translate the Bible into Yoruba.

This family background inspired Macaulay throughout his lifetime. He was proud of his roots and heritage without being pompous. His sense of family was exemplary, and he was passionate about the Crowther/Macaulay Descendants’ Union and its motto, “In Unity we stand, divided we fall.” He served enthusiastically as Secretary of the group for many years, and technically retained the position until his exit. He was always aware of the location of family members and their contact details, and was generally relied upon to play a linking role whenever there was a need for family gathering.

After his education in Lagos, he had a stint at Taylor Woodrow Company, before joining Shell in 1958. Two years later, in 1960, he married Eleanor Bodunrin Macaulay (nee Williams), his lifelong other half. It was at Shell that he bloomed, and he retired at a Senior Supervisory level after 30 years at the company. He was honoured with a long-service award during his career at Shell. As a Shell pensioner, he was a keen unofficial ambassador and projected a positive image of the company.

Macaulay placed a premium on education, and made sacrifices to ensure that his five children got a good education. He provided a stimulating home

environment for informal learning, and made it easy for his household and, even outsiders, to keep abreast of the news by consistently ensuring a supply of newspapers and magazines. He also kept a useful library.

He was quality-conscious without being showy, and exuded contentment. This aspect of his personality was informed by a deep spirituality beyond the formal structures of organised religion.

He regarded every man and woman as a brother or sister with whom he shared a common humanity, and was a loyal friend to those he bonded with.

“Life is interesting, and we are here to learn,” he often said. He had admirable sartorial polish, and was generally regarded as a gentleman.

He loved church music and, at different stages, he was a band member and played the Euphonium at the Salvation Army Lagos Central Corps; and choir member at the First Baptist Church, Lagos. His tenor voice was a delight to listen to when he sang, and in his latter years he participated in the activities of a Sierra Leonean singing band in Lagos.

There was an adventurous side to him, and he was interested in sports, especially boxing, swimming and soccer. Natural medicine fascinated him, and he was constantly trying out various nature-based preparations. He was equally fascinated by the lives that Nature has, and kept pets such as dogs, cats, rabbits and birds; he also liked to tend plants, and took pleasure in gardening.

His parting shot, from his notes, would be this quotation: “How do you beautify the Earth? You do this by the Good Thought, which comes from you, by the assistance you give your brother-man to rise materially and spiritually, and by the assistance you give other life than man to be more beautiful than you met it – IN SHORT, SERVICE TO MANKIND IN LOVE.” Baba Femi, I came through you; and I will always appreciate how you raised me. I owe you a debt of gratitude for your love, care and guidance. Peace to you, on the other side. Daddy, how are you, today?

• Macaulay is on the editorial board of The Nation

THE NATION MONDAY, SEPTEMBER 23 , 2013

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COMMENTS

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EFORE the disclaimer by the Baraje faction of the Peoples Democratic Party, PDP of speculated agreement with President Goodluck Jonathan, events had pointed at that grim direction despite claims from supporters of the president. Early indication came when the Tukur-led executive set up a caretaker committee for the Kano State chapter of the party. If there were some agreement, the Baraje faction would have been taken into confidence on the matter or it would have pended till the resumption of talks presumably in the first week of October.

But Tukur went ahead even as both factions are still embroiled in power struggle over the soul of the party. Of course, the Kano state government did not waste time to denounce it citing the party constitution that has no room for such contraption. The other signal which also came in quick succession was the visit by the Baraje group to the leadership of both chambers of the National Assembly to brief them on their grievances.

During both visits, the group tabled all the issues they hitherto purportedly reached agreement with the president including the demand that he should not be allowed to go for another term. To underscore the deadlock this time around, they referred to the purported ambition of Jonathan to run in 2015 as a third term agenda.

The purport of this terminology should not be lost on any discerning person. If anything, it underscores how hard the mind of the group has stiffened on that project and their irrevocable commitment to oppose it with their last blood. Their new disposition may have been fallout of speculations that the president pointedly told them he never told anybody he will not run for another term.

This could have been extrapolated as clear indication that Jonathan has made up his mind to run. And it could be logically so deduced.

‘It is gladdening that President Jonathan and Mark are buying into this visionary and futuristic idea. What is required now is for the necessary machinery to be set in motion for the immediate convocation of the conference’

T

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

Now, Mark has spoken The third term coinage has therefore left no one in doubt as to the sequence of events to follow.

Their engagement with the Senate President, David Mark was orderly. Mark never left them with any shred of doubt that he stood for a united PDP. But their encounter with the speaker of the House of Representatives turned out rowdy. There was fracas as the antiand pro-Baraje factions engaged each other in shouting bout and subsequent fisticuffs. The battle line was very clear and indicated very glaringly that harder times await the nation as the crises within the ruling party plays out in the days ahead.

Before the visit, Mark had succinctly captured the mood of the nation when he said at the reconvening of the Senate that he has seen the imperative for a national conference. According to him, steps should be taken to convene a national conference of ethnic nationalities to confront the “perceived or alleged structural distortions which have bred discontent and alienation in some quarters”. Such a conference in the thinking of the senate president could find accommodation in extant provisions of the constitution that guarantee freedom of expression and association.

Mark however put forward two caveats. The first is that it will be unconstitutional to clothe such a conference with constituent or sovereign powers. The other is that discussions on dismembering the country should be a no-go area. These aside, Mark believes every other question should be open for discussions as the resolutions of the ethnic nationalities called under the auspices of the federal government will carry tremendous weight.

HE more the merrier goes an age-long adage.

However, considered from the context of population, or in the sphere of population density, it is indeed a farce. It masks differences (be it religion, cultural, ethnic, or sheer multitude of people)

By Nigeriaism, we mean the nationhood of the entity called Nigeria and the history behind the nation.

Patriotism on the other hand is devoted love, support, and defence of one’s country – national loyalty. The concept of patriotism can best be captured or can be conjured better in expressing it as ‘Nigerianism’.

Since the amalgamation, has Nigeria showed any sign of being a nation? Has the country made any progress in sorting herself out on the way forward of becoming a country? Have the peoples of the country accepted one another truly?

The answers to the following puzzles will not be in the affirmative. The current system is just a farce. The Nigerian leaders and proponents of one united, harmonious Nigeria are deluding themselves; this delusion comes from the erroneous belief that “the more the merrier” or what in Igbo Language is called igwebuike –the higher the number, the stronger we become or simply crowd is strength.

This was why Nigeria got her independence in 1960.

H i st o ri c a l l y , N i g er i a l i k e G h a n a w as t o h av e h e r independence in 1957 but it was extended to 1960 because the northern part of Nigeria was not ready for selfgovernment and the southern Nigerian had to wait for their northern brothers. Why did the south wait? The only answer is Igwebuike.

Furthermore, the hypothesis that was given by the likes of late Dr Nnamdi Azikiwe was that Nigeria has to be one in order to dominate in Africa. They were successful in waiting, merging, having independence together and becoming the most populated country in Africa. But did they dominate Africa? Yes, Nigeria is the most populous country in Africa – and so what?

In fact, instead of the country to be merrier owing to her population, the country is even suffering the ignominy of a criminally large population. Worse still, the country has failed incredibly in her pursuit of dominance at both the regional (Africa) and global stage.

The other disheartening issue is that Nigerians have failed to appreciate the marriage. There is no respect among ethnic groups; hatred, stereotyping, and ethnic bias are a common sight in the country. We identify ourselves as “Ibo”, “Hausa” or “Yoruba” before Nigeria.

Our actions, body language all point to the fact that we have not accepted like we say, “the other tribe or ethnic group”. The proponents of one Nigeria are afraid of going against the grain of public opinion but like any other concept, we have to engage in rational discourse.

No doubt, the senate president’s backing for the convocation of a national conference of Nigeria’s estimated 390 ethnic nationalities is a very positive development for the country. It is also in line with the feelings of those who had before now, seen the conference as the only way out of the multifarious challenges facing the country. These challenges have been so much so that doubts have been expressed on the capacity of the country to withstand recurring systemic stress. Things are not helped by prediction from the United States of America, US that Nigeria might go the way of a failed state come 2015.

Though this predication had been roundly denounced in official quarters, events as 2015 inches nearer, show increasing signals that we may be in for a self-fulfilling prophecy.

In order to stave off the prospects of this looming danger, several well meaning Nigerians and interest groups have recommended the convocation of the conference.

But the greatest opposition to that idea had come from the National Assembly basking on the powers which the1999 constitution appeared to have conferred on it.

Now Mark has spoken, it would appear that a major stumbling block to the imperative of a national conference has given way.

He believes that the National Assembly though constitutionally not bound by the resolutions of such a conference, will be hard put to ignore them in the current constitution amendment process. In effect, Mark would want the conference to go hand in hand with the ongoing constitution amendment process. He would want the Nigerian people to come up with resolutions on how

they desire the nation’s affairs to be conducted.

When such resolutions have been crystallized, the National Assembly will then incorporate them as part of the ground norms for running this country. That could be a way out provided the resolutions of the nationalities will not be subjected to another round of debate by the lawmakers. This may not be as simplistic as has been presented. All the same, the key thing is the admission that we need to sit down and discuss issues affecting the constituent units.

The issue of structure and composition should pose no serious problem when it is understood that the overall goal is to save the country from going asunder. This objective weighs more than anything else. No sacrifice will be too much in its pursuit. In the same vein, fears on the possible fallouts of a sovereign or constituent variant can be taken care of, if all are genuinely committed to the overall unity and progress of the country. After all, the National Assembly derives its powers from the people and cannot possibly be above the ultimate sovereign power- the people.

Signals emanating from sections of the country, increasingly speak of an increasing pull towards centrifugalism. And at the root of these are increasing feelings of alienation, marginalization and the inability of the central government to equitably cater for the component units. There are also several structural and systemic distortions that have stood on the way of the citizens realizing their potentials to the fullest. They are loaded with frightening prospects for system collapse and failure. It is more profitable to address than allow them weigh down the country.

It is gladdening that President Jonathan and Mark are buying into this visionary and futuristic idea. What is required now is for the necessary machinery to be set in motion for the immediate convocation of the conference.

It is possible. All obstacles that have been raised are human including aspects of the constitution. Being human issues, they can be redirected to serve humanity better.

But, we need to hear the position of the factional PDP led by Baraje on the propriety of a national conference. We also need to hear from the Arewa Consultative Forum, Northern Elders Forum and others that have been vocal on power shift. This will help sift those genuinely for the peace, progress and stability of this country and others seeking power to perpetuate the glaring inequities of the decadent order that has led to this pass.

Nigeriaism, patriotism and development

By Uwalak Temple With poverty looming over us, hatred, and bad-mouthing showing up perpetually, it is obligatory that we explore and obviate this problem. But what has caused this problem to linger is the fact that people are afraid of the consequences of pointing out the way forward. And the way forward is to divide Nigeria into different countries, or practice confederalism or resource control federalism –some call it true federalism.

A divided Nigeria will accelerate development. The current system is an embarrassment to federalism. The quasi-federalism we operate now has killed the cardinal attribute that describe Nigerians. It has ended competition, hard work and passion for the development of the country. It enthroned parasitism, where states sit idly by and wait for the central government to dish out the monthly allocation from the resources of other states.

This parasitic system buoyed some state leaders to kill any zeal of creativity in revenue generation. It is an act unbecoming of a federal state. And in effect, it destroyed the competitive nature of the regional setting, killed the focus and vision of the regional actors. All these forced the country to retrogress as well as eroding any form of patriotism that the citizens must have imbibed.

The hypothesis of this piece is that a divided Nigeria will expedite development. This view may seem radical, pessimistic and unpatriotic. The closest that Nigeria can go to development will be either to divide, or practice confederal, or the true federal system.

Another salient flaw in this system is the bloated nature of the system. Because we see the country as a cake, that must have informed our irrational system that suck the nation dry. The executive arm is bloated, the legislative arm bloated and criminally ineffective. The emoluments of those in government are heavy load to the resources of the country. It is like having a six year old baby carry one hundred kg of load. The load from these criminal salaries of those in government is suppressing any development that will come to the country.

So, how can dividing, or practicing a confederal system or true federalism-a system which gives the state power to control her resources, help develop Nigeria? We will evoke the concept of another Ibo saying, “NkembuNkem”, nkeanyibunkeanyi”-my own is my

own and our own is our own. This will allow the distinctive countries-that will come out of Nigeria, states – in case of confederalism or true federalism to see to the development of their place. The people and their leaders, we assume, will have a shared sense of duty and committed to developing their place. They will do this by reducing cost, by being sincere- they will eradicate or reduce corruption and wear a thinking cap on how to develop their country or state. And the people on the other hand will be patriotic, obedient and participate in causes of development. We view the success of the regional setting in the early 60s as a sequel of this concept of “nkembunkem”- my own is my own.

Nigeriaism has failed so far to stimulate development in Nigeria. It also has failed woefully to integrate the peoples of Nigeria; thereby, acting as a fertile ground for ethnic bias, parasitic attitude, lack of patriotism, bitterness and hatred. Like we have hypothesized, for Nigeria to develop, there should be a sense of ‘my own’ on the part of leadership and followership. And this can only come by dividing the country or practicing a confederal or true federal system.

The magic is that it will give the power of development to states, regions etc. this singular act will bring a sense of shared duty in the regions or states.

In essence, for Nigeria to move forward, she has to try a new style other than being stuck on this unworkable one.

•Temple is a doctoral student at the University of Canberra, Australia.

‘A divided Nigeria will accelerate development. The current system is an embarrassment to federalism. The quasi-federalism we operate now has killed the cardinal attribute that describe Nigerians. It has ended competition, hard work and passion for the development’

THE NATION MONDAY SEPTEMBER 23, 2013

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THE NATION MONDAY, SEPTEMBER 23, 2013

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

THE CEO

JOBS

‘Nigerian Content Act is a blessing’ -P. 28 News Briefing Banks’ lending to agric may increase to 7%, says CBN BANKS’ lending to agriculture sector is expected to rise from the 3.5 per cent to seven per cent in the next decade, Central Bank of Nigeria (CBN) Deputy Governor, Financial System Stability, Dr Kingsley Moghalu, has said.

- Page 26

‘High cost affects internet service’ THE Nigeria Internet Group (NIG) has blamed the unpalatable end-user experience of data services (internet) on the prohibitive cost of bandwidth.

- Page 26

‘Contributors to own homes soon’ ARE you a contributor or retiree under the Contributory Pension Scheme (CPS) of the Pension Reform Act, 2004, living in the Southwest?

- Page 35 DATA STREAM COMMODITY PRICES Oil -$107/barrel Cocoa-$2,686.35/metric ton Coffee - ¢132.70/pound Cotton - ¢95.17pound Gold -$1,800/troy ounce Rubber -¢159.21pound MARKET CAPITALISATIONS NSE

-N12.1 trillion

JSE

-Z5.112trillion

NYSE

-$10.84 trillion

LSE

-£61.67 trillion RATES

Inflation

-8.4%

Treasury Bills

-7.08%

Maximum lending -22.42% Prime lending

-15.87%

Savings rate

-2%

91-day NTB

-15%

Time Deposit

-5.49%

MPR

-12%

Foreign Reserve $46.9b FOREX CFA

-0.2958

EUR

-206.9

£

-242.1

$

-156

¥

-1.9179

SDR

-238

RIYAL

-40.472

We want a SONCAP programme that would serve its purpose; a programme that would be dynamic, where all the identified loopholes would be effectively plugged thereby making it difficult for the plaque of substandard products to continue to dominate the Nigerian business space.

-Dr Joseph Odumodu, DG, SON

Wanted: Insurance actuaries - Pg 37

Controversy trails Fed Govt’s N15b grant to BoA T HERE is controvesy over the status of the N15billion the Federal Government advanced to the Bank of Agriculture (BoA) for on-lending to farmers, The Nation has learnt.

Vice President Namadi Sambo had said the Federal Government has extended a N15 billion grant to the BoA to lend at a single-digit to farmers for this year’s farming season.

But a source said no such grant has been released by the government, saying what the Vice President referred to was the

From Nduka Chiejina (Asst. Editor), Abuja

recapitalisation fund injected into BoA. The source, who asked that his identity be veiled, said as civil servants, they are not in a position to contradict the Vice President on such a sensitive issue.

He denied the existence of the grant, insisting that what Sambo was referring to was the recapitalisation fund, “but we cannot say the Vice

15m children engage in child labour, says ILO

A

BOUT 15 million un der-aged Nigerian children are engaged in child labour, the International Labour Organisation (ILO), has said.

Its Technical Adviser, Mr Krishna Kukkikate, said the figure is out of the 48 million, which engaged in child labour, in sub-Sahara Africa.

Kukkikate, told The Nation in Lagos, that while child labour continues to decline globally, it keeps increasing in Nigeria and other African countries.

He said about 215 million children are engaged in child labour globally, while 115million out of the 215 million are involved in hazardous work. However, Asia and Pacific figures have been reduced by 96 million, while Latin America’s is down by 10 million, stressing that in the case of Nigeria and other sub-Saharan African countries, the figures keep increasing.

He cited persistence poverty increase in the population, cultural and religion practices and illiteracy as some of the challenges causing child labour.

He said about eight million of the child labourers are males, while about seven million are females, adding that they fall within the five- and 14year-old bracket.

Kukkikate said the vulnerable children work in the homes of a third party or employer, carrying out tasks, such as hawking, farming, cleaning, ironing, cooking, gardening, looking after other children and caring for the elderly.

He said they are vulnerable to physical, psychological and sexual violence and abusive working conditions, while they are

By Toba Agboola

often isolated from their families, hidden from the public eye and become highly dependent on their employers. Besides, they are also mostly sexually exploited and abused, he said.

His words: “The situation of many child domestic workers, not only constitutes a serious violation of child rights, but remains an obstacle to the achievement of many national and international development objectives.

There are worsening situation of child labour in Nigeria just as in other African countries.

“Child labour is a general problem in Nigeria and Africa. There are some countries in Africa where one out of four children, are in child labour and many of those are in child domestic work. We find this in mining, agriculture. When you try to remove child labour from one area, they tend to go to another area, and domestic workers fall into one of those.

The ILO chief explained that most of its actions are area specific, and when you are addressing child labour, you are addressing it in all its different forms.

It is in very extreme situation in some countries, and there has been some very good progress in others, he said.

He called for concerted and joint action at the national and international levels to eliminate child labour in domestic work.

“We need a robust legal framework to clearly identify, prevent and eliminate child labour in domestic work, and to provide decent working conditions to adolescents where they can legally work,” he said.

President is wrong, but what he said is not as presented.”

At the closing of the 19th Nigerian Economic Summit (NES) in Abuja, Sambo had said the government was aware of the problems farmers faced, such as access to financing and the high interest rate charged by banks, adding that to solve them, the Federal Government had to take steps to remove the bottlenecks in the agricultural sector to allow for growth and development.

He described these policy initiatives as short-term measures, saying the government was putting in place mechanisms to facilitate long-term access to credit to farmers.

In February, this year, the Federal Government okayed N15 billion to recapitalise

the BoA. Earlier, the BoA had received N30billion of the N50billion approved share capital in about 13 installments, since the merger of its legacy institutions in 2000.

Also last week, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi OkonjoIweala, boasted that the Federal Government had paid civil servants their September salary.

However, days after, investigations revealed that civil servants have not been paid. Many civil servants said they were paid their August salary in the first week of September.

• Sambo

In addition, the monthly Federation Account Allocation Committee (FAAC) meeting for August allocation, from where September salaries would be paid, did not hold on Thursday as planned, but is now scheduled for today.

‘He denied the existence of the grant, insisting that what Sambo was referring to, was the ‘recapitalisation fund, “but we cannot say the Vice President is wrong but what he said is not as presented’

THE NATION MONDAY, SEPTEMBER 23, 2013

26

BUSINESS NEWS Flight Schedule

‘$5b lost to oil theft’

MONDAY - FRIDAY LAGOS – ABUJA Departure Arrival 1. Aero 06.50 08.10 2. Associated 07.00 09.30 3. Air Nigeria 07.00 08.20 4. IRS 07.00 08.20 7. Arik 07.15 08.15 7. Chanchangi 07.15 9. Air Nigeria 08.15 09.35 10. Aero 08.45 10.05 11. Arik 09.15 10.15 12. Chanchangi 10.00 11.00 13. IRS 11.15 12.35 14. Aero 12.20 13.30 15. Air Nigeria 13.25 14.45 16. Chanchangi 13.30 14.30 17. Arik 13.45 14.45 18. IRS 14.00 15.20 19. Aero 14.10 15.30 20. Air Nigeria 14.50 16.10 21. Chanchangi 15.30 16.30 22. Arik 15.50 16.50 23. Aero 16.00 17.20 24. IRS 16.30 17.50 25. Arik 16.50 17.50 26. Chanchangi 17.30 18.30 27. Air Nigeria 17.35 18.55 29. Air Nigeria (T/TH) 18.30 19.50 20. Arik 18.45 19.45 31. Aero 19.20 20.40

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LAGOS – BENIN Arik 07.30 Associated 08.30 Aero 10.50 Arik 11.45 Associated 13.00 Aero 14.25 Arik 15.30 Associated 16.00 Arik Aero Arik Aero

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LAGOS – CALABAR 07.30 11.20 12.50 16.00 LAGOS – JOS 10.55 11.15

LAGOS – KADUNA Aero 08.00 Chanchangi 10.00 Arik 10.00 Arik 15.10

08.30 09.10 11.50 12.45 13.40 15.20 16.30 16.40 08.50 12.40 14.10 17.20 12.15 12.45 09.10 11.00 11.10 16.20

LAGOS – PORT HARCOURT (CIVIL) 1. Aero 07.15 08.35 2. Arik 07.15 08.35 3. Arik 09.00 10.20 4. Aero 10.50 12.30 5. Arik 11.40 13.00 6. Air Nigeria 12.00 13.10 7. IRS 13.30 15.00 8. Arik 14.00 15.20 9. Air Nigeria 16.00 17.10 10 Arik 16.10 17.30 11. Aero 16.15 17.30 12. Arik 17.10 18.30 1.

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LAGOS – KANO Air Nigeria 07.10 IRS 08.00 Arik 12.20 IRS 14.00 IRS 18.15

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LAGOS – MAIDUGURI 1. IRS 11.15 13.15 2. Arik 15.50 18.00 LAGOS – ILORIN 1. Overland 07.15 2. Arik (M/T/TH/F) 17.30

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LAGOS – ABUJA SAT/SUN Arik 7.15; 10.20; 2.20; 5.20pm – 7.30; 9.15; 10.20; 2.20; 4.50; 6.45 Aero 07.30; 09.35; 13.10; 14.50; 20.20 – 07.30; 09.35; 13.10; 14.50; 20.20 Air Nigeria 08.15; 14.30; 17.15; 18.30 – 08.15; 13.30; 14.30; 17.15; 18.30

By Akinola Ajibade with Agency Report

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• From left: Divisional Head, Corporate & Investment Banking, Keystone Bank, Omotayo Ajani; Chairman/CEO E. Ekesons Bros Nigeria Limited, Chief Eugene Ojukwu; President and founder, Cheloa Consulting Group, Dr. Randall S. Cheloha; Executive Director, Corporate, Investment and International Banking, Keystone Bank, Dr. Shehu K. Muhammad, and Executive Chairman, QMC Nigeria Limited, AbdulHakeem Adelaja Amao, at the International Succession Planning Programme by Michael Stevens Consulting in Lagos.

Banks’ lending to agric may increase to 7%, says CBN B ANKS’ lending to agriculture sector is expected to rise from the 3.5 per cent to seven per cent in the next decade, Central Bank of Nigeria (CBN) Deputy Governor, Financial System Stability, Dr Kingsley Moghalu, has said.

He made this known at the weekend on the sidelines of the end of the Euromoney conference in Lagos.

Moghalu said the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) initiative has boosted agricultural lending.

By Collins Nweze

He said the level of attention the subsector is getting is a reflection of a new thinking that it holds key to the economic growth and development.

Data from the CBN indicate that NIRSAL introduced in July last year, is determined to grow loans to the sector to four per cent of banks’ total loans, from the average of 1.5 per cent in

2009.

The NIRSAL guarantees up to 75 per cent of bank loans to the sector.

The initiative, which is the brainchild of the CBN, the Bankers’ Committee and the Federal Ministry of Agriculture and Rural Development (FMARD), seeks to create incentives and catalyse processes that will encourage the growth of formal credit, direct and indirect, for the agriculture value chain. This, the CBN said is key in driving wealth creation among value chain participants.

‘High cost affects internet service quality’

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HE Nigeria Internet Group (NIG) has blamed the unpal atable end-user experience of data services (internet) on the prohibitive cost of bandwidth.

This is despite the landing of Glo1, MainOne West African Cable System (WACS) funded by MTN, and dormant capacities in NigComSat R and SAT 3 in which the moribund NITEL is a major stakeholder.

NIG President, Bayo Banjo said the cost of bandwidth is too expensive for the average internet user, adding that this has led to the frustration users face after subscribing to one plan from their service providers or internet service providers (ISPs).

He said this development has led to ISPs not living up to their promises, adding that this explains why it takes so long for internet pages to load, or never loads at all.

“The reason people experience frustration when using the internet is because the cost of bandwidth is too high. We have to bring down the price of bandwidth. Bandwidth

By Lucas Ajanaku

is too expensive in this country.

So what the companies are doing is that they buy bandwidth and share. The average Nigerian cannot afford the punitive cost of bandwidth, so that is the cause of the slow internet speed,” Banjo, who is also the chief executive officer of Disc Communication, said.

He said the solution to the problem is to crash the cost of bandwidth, urging the Federal Government to step in and subsidise the cost so that when it becomes ubiquitous, the benefits arising from the economy of scale will be fully tapped.

He said to get good bandwidth, there’s need to bring the cost down. “What I told the government is that they should bring down the cost of bandwidth. The Federal Government should subsidise the cost of bandwidth so that when the customer base becomes large, when the ordinary man on the street also begins to browse, there will be economies

of scale that will bring down the price,” he said.

According to him, the Chief Executive Officer of MainOne Cable Company, Ms Funke Opeke, has assured that when uptake volumes cross a certain threshold, she will be willing to reduce the cost of bandwidth.

“Somebody has to take the flak.

Even MainOne CEO, Funke Opeke, had assured that if she has certain amount of volume, she can bring bandwidth cost down to $25 per month for one megabyte which is about N2,000 for a whole megabyte but she needs that volume.

“So, what firms like Mobitel, Spectranet (and others) are doing is that they say they are giving you one megabyte at N10000 per month but the truth is that it is really not one meg. They are sharing bandwidth. That is why sometimes it goes so slow that you cannot open a page, sometimes it break alltogether. So, the Federal Government has a big role to play in this matter,” he added.

PwC chief advocates tax reforms to aid economic RICEwaterhouseCoopers He called for the establishment of growth (PwC) Nigeria has called on a specific committee of the Na-

P

the government to overhaul the country’s tax system to ensure that taxes are used to bring about sustainable economic growth.

The Country Leader for PwC Nigeria and Regional Senior Partner, West Africa, Ken Igbokwe, made the call in a paper, titled: Hallmarks of a good tax system he presented at the launch of the Nigeria Leadership Initiative’s (NLI) White Papers Volume 2.

He observed that taxes should be raised to meet social needs, develop infrastructure and influence economic decisions without discouraging investments or stifling growth.

He argued that sensible tax re-

forms would pave the way to a sustainable economic growth in the country.

PwC Partner and Head of Tax, Taiwo Oyedele, said the task of governments in meeting these requirements is not easy, particularly in the economic circumstances, adding that what is important is ensuring that the tax system encourages, and not discourages, business growth.

He pointed out that the most important aspect of achieving a good tax system is having the right legal framework in place, and called on the legislative arms of government to consciously make laws that are clear and easy to understand.

tional and State Assemblies on Tax Matters; and empowering the Joint Tax Board to enforce compliance with tax laws, rather than merely acting in an advisory capacity.

Oyedele defined a good tax system as one that has a clear purpose – strategic, coherent, efficient, fair and transparent – and urged the three arms of government to carry out their respective roles in building a good tax system.

He tasked the executive arm of government to ensure an efficient tax administration. “The tax authorities must treat taxpayers as customers, trusting them but verifying the information provided within appropriate benchmarks.”

IGERIA is losing about $5billion yearly to oil theft, a newswire report has said.

The report said stolen oil worth billions of dollars is sold yearly on the international market, adding that much of the proceeds are laundered in world financial centres such as Britain and the United States.

It said an investigation carried out by London-based Chatham House revealed that an estimated 100,000 bpd was stolen from pipelines in the first quarter of this year, excluding the unknown quantities from stolen export terminals.

The theft amounts to around five per cent of Nigeria’s two million bpd production, as well as having a wider impact since oil companies are often forced to shut down pipelines due to damage caused by thieves.

It said the country produces 400,000 bpd below its capacity, mainly due to theft and pipeline closures.

The report said: ”Nigerian crude oil is being stolen on an industrial scale. Proceeds are laundered through world financial centers and used to buy assets in and outside Nigeria,” said the 70-page report, titled: “Nigeria’s Criminal Crude”.

“Thieves have many ways to disguise funds ... including cash smuggling, delayed deposits, use of middlemen, shell companies and tax havens, bribery of bank officials, cycling cash through legitimate businesses and cash purchases of luxury goods.”

It named the US, Britain, Dubai, Indonesia, India, Singapore and Switzerland as likely money-laundering hotspots, and the United States, Brazil, China, Thailand, Indonesia and the Balkans as the most likely destination for stolen oil.

According to the report, Chatham House report suggested violence associated with the theft is less than supposed, although the armed gangs involved have destabilized the oilproducing Niger Delta in the last decade.

Group holds awards Nov. 9

T

O promote quality among businesses, Elite Business Africa Network is holding its maiden awards called on November 9 at the Civic Centre, Victoria Island, Mr Uchenna Achunine its Member and Chief Operating Officer, Centre for Values in Leadership (CVL) has said.

Speaking at a briefing in Lagos, he said the aim of awards known asNigeria Elite Business Awards (NEBA) is to provide a neutral platform for businesses and their managers.

Mr Achunine said EBAN is an African focused business-oriented initiative developed to propagate professionalism, innovation, adherence to corporate governance, probity, excellence and global best practices across Africa.

“EBAN organises premium award events that reward excellence among the most elite businesses operating in Africa. The awards focus on recognising outstanding corporate behavior within the award year with the hope of helping institutionalise commitment to excellence and innovation in Africa’s corporate environment,” said Achunine.

THE NATION MONDAY, SEPTEMBER 23, 2013

27

THE CEO

‘Nigerian Content Act is a blessing’ • Omogbemi

PHOTO: ABIODUN WILLIAM

The Chairman, Chief Executive Officer, Gibles Oil and Energy Group Limited, Prince Blessing Omogbemi, is a beneficiary of the Nigerian Content initiative. In this interview with Deputy Business Editor SIMEON EBULU and Assistant Editor EMEKA UGWUANYI, he explains how the law has helped his business to grow.

W

HAT is your assessment of the Nigerian Content Act? The Act is very good because most of the provisions are geared toward promoting indigenous capacity development. Section 47 of the Act says that the operators should set up manufacturing factories to produce some of the ancillary equipment such as nuts and bolts, among others in-country and invest in facilities, so the wealth spent on importation of these items should be retained in Nigeria. Unemployment is a major challenge to the country and without the establishment of factories here in the country, we cannot eliminate or reduce unemployment.The Act helps both the international oil companies (IOCs) and the indigenous companies in the oil and gas industry because it created opportunity to manage the industry within. It helps the government to be focused as well as Nigerians willing to do business the right way. It gives the indigenous firms opportunity because if not for the Act, I wouldn’t be doing a job in Escravos GasTo-Liquid (EGTL). It will promote the local community contractors, all the indigenous companies financially and socially but one

thing will happen. We have to be prepared.

The vision we have is not just for our company but also to leverage individual potential at community and national levels. It is the Nigerian Content Act that will give us the room to operate but we have to think about equipment acquisition, and yards.

Most of the fabrication jobs are carried in South Korea. If these jobs are continued to be done overseas, when will Nigerians take over? I believe this is transition period and Nigerians should competently take their rightful place in the industry. It should be a

gradual process but we have to be prepared in terms of financial capability, right personnel and good facilities.

Which other multinational company has boosted Nigerian Content?

I will continue to mention Chevron because 90 per cent of the jobs my company has done came from Chevron, while Addax is about five per cent and the remaining from Nigerian National Petroleum Corporation (NNPC).

What are the contracts Chevron gave your company?

‘The Content Act helps both the international oil companies (IOCs) and the indigenous companies in the oil and gas industry because it created opportunity to manage the industry within. It helps the government to be focused as well as Nigerians willing to do business the right way. It gives the indigenous firms opportunity’

In 2005, we got our first contract from Chevron, which was double-jointing of floating pipeline. It was in Warri and I used a fabrication yard in Warri to do it. Another one is the EGTL project, which involved painting and sand-blasting jobs, re-factory and supply of labour. We are also looking at another one that we are still working on, which we will partner with our partner in China.

We are proposing the construction of a factory in Ogun State. We are still talking with the Ogun State Government and they said the land is ready. The factory will manufacture bolts and nuts and we will partner with the state government on the project as well as our Chinese partners. We also have plans to go into agricultural project, where we will do poultry farming and plantation. We are talking with Chevron on that project because the company has a foundation called PING Foundation, which plays in the agricultural sector, to see how they can support us. We are talking the officials PING Foundation and have promised to talk to Diamond and Fidelity Banks to finance the agricultural project. We have already acquired •Continued on page 28

THE NATION MONDAY, SEPTEMBER 23, 2013

28

THE CEO

‘Nigerian Content Act is a blessing’ •Continued from page 27

two acres of land in Ogun State for the project within the area Olokola LNG project is situated. We have not concluded on the discussion, by the time we conclude, I will give update on the level of their support.

How much has your company earned from the contracts secured from Chevron?

I cannot really talk about the amount but I can say that the business I have done with them since 2000 to 2013, has been very profitable. There was no record of loss but profit.

You mentioned agriculture and you play in oil and gas, what is the relationship between the two?

The PING Foundation is just to help the people in Niger Delta region and because Chevron operates in the region, the company explores areas where it can help the people, look at what they lack or what will benefit them and see how it can provide these things. The company encourages development of small and medium scale enterprises (SMEs) through the foundation. It is a body just the way I have the Perfect Care Foundation in order to take of the people where it operates. I think, it is just to take care of the people it works in their land and also to empower them.

Should we say that the initiatives

by Chevron and other IOCs by extension are part of measures to curb or eliminate militant activities in the region?

I think it is part of it and it is the way forward because if everybody is busy nobody will be willing to be involved in militant activity.

Chevron believes that the best way to help, engage and empower the people in the region is not by giving them money but by teaching them how to make the money on their own. The company doesn’t want the people to engage in fraudulent activities and the best way to handle the issue is to set up the PING Foundation. The foundation takes care of those willing to do business or vocational activities male and female alike because the major occupation of the people in the region is fishing and farming.

Can you throw more light on the agriculture project and in which areas will your firm to be involved?

The areas the foundation supports include poultry and cassava farming. It is also looking at marine activities such as vessels acquisition.

The jobs you did for Chevron and Addax, how did they translate to job and wealth creation for Nigerians?

I may not be able to say exactly but on the EGTL project not less than 10,000 Nigerians, including engineers, welders and contractors, among others, worked on it, which shows that Chevron is concerned about Nigerians and I can say it is a major promoter of Nigerians in job creation.

There may be other indigenous firms that want to do contracts with international oil companies but dont know how to go about it. How did you become Chevron’s contractor?

What I was doing for Chevron before 2000 was supply of fish, shrimps and prawns, among others to Nigerian caterers who cook for the company. At a point, I thought I have to upscale my business. I proposed to build a cold room at Awoye in Ilaje where Chevron has a facility because suppliers didn’t have cold rooms then.

The cold room could have been built within the shortest period but the crisis between the Ijaw and the Ilaje in 1998 stalled the cold room business. We have finished constructing the structure but couldn’t continue with the business because of the crisis. I decided not

• Omogbemi

• Omogbemi

• Omogbemi

PHOTOS: ABIODUN WILLIAM

‘Playing in the downstream sector has been part of our initial plan and vision. We don’t want to put all our eggs in one basket.

We cannot concentrate only on the upstream. The emergence of shale oil and gas, according reports, will have negative impact on the country’s upstream sector; therefore, we want to diversify into other sectors. We also look at our role models such as Mr Aliko Dangote and Chief Mike Adenuga. They are into different sectors of the economy and that is the way we want Gibles Group to go’ to continue with fish business and veered into construction in 2000, registered Gibles Group with CAC and in the same year registered as a contractor with Chevron.

How do you source your funds?

Our projects are financed by local banks. Our first project was financed by Intercontinental Bank now Access Bank. The funds for the

EGTL project were sourced from First Bank. Chevron gave us 30 per cent mobilisation and the remaining 70 per cent came from First Bank. We used the contract paper and some properties as collateral to get the loan.

Gibles Group has six subsidiaries including oil and gas, marine and logistics and hospitality,

among others, do you have a technical partner either foreign or local or do you operate a one-man show?

We believe in partnership because it works. I don’t subscribe to family business that one manages with your wife and son because of you people are not resourceful and don’t have ideas, the

company will just die. We don’t want that. Based on our vision, we have many things we want to do and we cannot do it with one company. Gibles is into engineering services including blasting and painting, fabrication, manufacturing, procurement and equipment leasing. But Vital Oil Limited is for downstream. Our downstream operation will come on stream next week. We will be marketing premium motor spirit (petrol), automotive gas oil (diesel) and dual purpose kerosene. We will start our marketing and distribution outlets in Lagos where we will move on to other parts of the country.

What informed your desire to play in the downstream sector?

Playing in the downstream sector has been part of our initial plan and vision. We don’t want to put all our eggs in one basket. We cannot concentrate only on the upstream. The emergence of shale oil and gas, according reports, will have negative impact on the country’s upstream sector; therefore, we want to diversify into other sectors. We also look at our role models such as Mr Aliko Dangote and Chief Mike Adenuga. They are into different sectors of the economy and that is the way we want Gibles Group to go.

What is your budget for Vital Oil in the short term?

We are working banks and I don’t want to disclose exactly our budget but it will not be less than N150 million for a start. We want to start with distribution of AGO (diesel) and renting of filling stations. We don’t want to start construction of new filling stations immediately. We want to rent filling stations for at least a year. We are talking with depot owners for products purchase. We have already paid for four trucks that will carry the products. We have also concluded training for the personnel that would do the job. These preparations delayed our taking the final investment decision (FID). The downstream marketing is a profitable business but one has to be very prudent in running it.

We will finance 25 per cent of the cost while banks will do the remaining.

Are you looking at vessel acquisition and importation of petroleum products in future?

We are just dealers because we haven’t got licence to carry out the business you are talking about but we are working on it. One of the products codes registered with NIPEX includes vessel acquisition under the marine logistics. We have secured certificates from NIMASA and NPA. What is your take on deregulation of the downstream sector?

Deregulation is good but the government should assist operators in the downstream because the cost of funds (securing loans is high). Government should see how to come in and make banks’ interest rates come down.

What are your challenges?

The most challenging area is securing funds to finance projects because if you go to the banks they ark you will bring all manner of collaterals, get this and that. If not because I have assets in Lagos and other places, it would be difficult for me to secure loans from banks.

Another challenge is in the area of skills development. Government should find way of making Nigerians to be trained to be able to take over from the IOCs. Many locals lack skill and expertise and are very lazy. Nigerians should set up requisite training centres to train Nigerians.

THE NATION MONDAY, SEPTEMBER 23, 2013

29

DUE DILIGENCE

S

Seven-Up: Tasting better

EVEN-UP Bottling Company (7-Up) Plc rode on the back of improved cost management and significant deleverage to improve its overall performance outlook in the year.

While sales growth remained in single digit, increased cost efficiency optimised the bottom-line performance with double-digit growth in pre and post tax profits. Audited report and accounts of the soft-drink company for the year ended March 31, 2013 showed that sales increased by 7.1 per cent but higher margins pushed profit before tax up by 27.5 per cent. Profit after tax rose by 70.3 per cent, underlining the increase in basic earnings per share from N2.62 in 2012 to N4.46 in 2013.

The improved bottom-line performance enabled the company to increase cash payout by 10 per cent just as its net assets value rose by 22 per cent. The prospects for future dividend payment was stronger with a dividend cover of 2.0 times in 2013 as against 1.3 times in 2012. Both actual and underlying profit and loss indicators showed appreciable improvement in the profitability of the company.

Seven-Up’s profit and loss performance was also congruent with improvement in its balance sheet. With larger equity funds, lower financial leverage and increased liquidity, the balance sheet was stronger in 2013 compared with the previous year.

However, the company’s financing structure and general balance sheet position remained susceptible. While the debt-to-equity ratio improved by 51 percentage points, it remains substantially high at about 118 per cent. The company still wriggles with negative working capital and vulnerable liquidity coverage.

Financing structure Seven-Up’s financing structure improved in 2013. The proportion of equity funds to total assets improved from 21.3 per cent in 2012 to 24.5 per cent in 2013. The company’s debt-to-equity ratio also reduced from 168.9 per cent in 2012 to 117.8 per cent in 2013.

Long-term liabilities/total assets ratio improved from 17.5 per cent to 21.3 per cent while the proportion of current liabilities to total assets stood at 54.2 per cent in

By Taofik Salako Capital Market Editor

2013 as against 61.2 per cent in 2012.

Total assets had inched up by 5.9 per cent from N48.49 billion to N51.37 billion. Current assets stood at N15.50 billion, 3.3 per cent above N15.01 billion recorded in 2012. Long-term assets had increased by 7.2 per cent from N33.48 billion to N35.87 billion. Total liabilities closed almost flat at N38.79 billion as against N38.18 billion.

Bank loans dropped by about 15 per cent from N17.41 billion to N14.82 billion. While the paid up capital remained unchanged at N320 million, shareholders’ funds rose by 22 per cent from N10.31 billion to N12.58 billion.

Efficiency Seven-Up reined in costs and increased staff productivity, creating modest margin that further improved profitability. Average number of employees increased to 3,701 persons in 2013 as against 3,643 persons in 2012. Total staff costs meanwhile increased from N7.437 billion to N8.388 billion, implying an average cost per head of N2.27 billion in 2013 as against N2.04 billion in 2012. Average contribution of each employee to pre-tax profit improved from N0.70 million to N0.88 million.

The wide disparity between average cost per head and average pre-tax profit per head underlined the top-heavy nature of the staff costs structure, where nearly half of the employees earn around N1 million per annum. Total cost of business, excluding interest expense, improved marginally to 91.3 per cent in 2013 as against 92.1 per cent in 2012.

Profitability Actual profit and loss items and underlying profitability indices showed improved performance in the year under review. Group turnover rose by 7.1 per cent from N59.86 billion to N64.09 billion.

Cost of sales moderated at N41.12 billion as against N38.54 billion.

Gross profit rose by 7.3 per cent from N21.333 billion to N22.89 billion. Total operating expenses stood at N17.41 billion, 5.0 per cent above N16.58 billion recorded in the previous year. While non-core

business income rose by about 25 per cent from N57 million to N72 million, interest expense was almost flat at N2.29 billion in 2013 as against N2.25 billion in 2012.

With these, profit before tax increased by 27.5 per cent from N2.56 billion to N3.26 billion. With about 54 per cent reduction in tax expenses, profit after tax jumped by 70 per cent from N1.68 billion to N2.86 billion.

Beyond the surface, the intrinsic profit-making capacity of the company improved in 2013. While gross profit margin inched up from 35.6 per cent to 35.7 per cent, the improvement was evident in pre-tax profit margin which rose from 4.3 per cent to 5.1 per cent.

Underlying returns were also better with return on total assets of 6.4 per cent in 2013 as against 5.3 per cent in 2012. Return on equity also rose from 16.3 per cent to 22.7 per cent.

On Per share basis, basic earnings per share improved from N2.62 to N4.46. The board of the company has recommended increase in cash dividends to N1.41 billion compared with N1.28 billion distributed for the 2012 business year. This implies a dividend per share of N2.20 in 2013 as against N2 in 2012. Notwithstanding the increase in cash payout, dividend cover increased from 1.3 times to twice. Net assets per share also increased by 22 per cent from N16.09 to N19.63.

Analyst’s opinion The performance of 7-Up in 2013 is commendable. It has managed its constrained top-line efficiently. The emerging balance sheet restructuring, though still tenuous, supports the overall performance outlook.

However, it needs to further enliven the top-line and create wider room for profitability, there is a limit to the extent it can use cost management to manage slow sales without adversely affecting the long-term performance of the company. Besides, 7-Up needs to aggressively improve on its balance sheet restructuring.

Emerging reports indicate the company is on track to achieving some of these key targets. Interim report for the first quarter ended

•MD Seven Up Bottling Company Sunil Sawhney

June 30, 2013 showed considerable improvement in actual and underlying profitability. Average pre-tax profit margin improved to 10.1 per cent in 2013 as against 6.05 per cent recorded in comparable period of 2012. Turnover rose by 15.2 per cent from N15.42 billion to N17.77 billion. Gross profit grew by 23.5 per cent to N6.93 billion as against N5.61 billion in corresponding period of 2012. Profit before tax jumped by 93 per cent from N933.04 million to N1.80 billion. After taxes, net profit doubled from N713.87 million to N1.47 billion.

The emerging outlook is impressive; 7-Up needs to sustain the momentum; growing the top-line while optimising the midline cost management to deliver better returns to shareholders.

Liquidity The company’s liquidity position improved during the period, although it generally remained weak and susceptible. Current ratio, which relates current assets to current liabilities, improved from 0.51 times to 0.56 times. While working capital remained negative, the quantum improved during the period. The proportion of working capital to total sales stood at -19.3 per cent in 2013 as against -24.5 per cent in 2012. Debtor/ creditor ratio closed 2013 at 8.9 per cent compared with 6.6 per cent in 2012.

Governance and structures Incorporated in 1959, 7-Up derived its name from its unique flagship brand-7-Up soft drink. A leading fast moving consumer good (FMCG) company, 72012 Up is the 12 months manufacturer and Nigerian franchise holder for sev59,864 eral global 59,864 soft drinks in38,538 cluding Pepsi 21,326 and Mirinda.

16,578 Its other 57 2,248 Fiscal Year Ended March 31 2,559 1,678 262 Financing structure 1,281 Equity funds/Total assets 200 Long-term liabilities/Total assets 1,609 Current liabilities/Total assets Debt/Equity ratio

Fiscal Year Ended March 31 Nmillion

2013 12 months

% change

Profit and Loss Statement Main Business Segment Total turnover Cost of sales Gross profit Operating expenses Interest and other incomes Finance expenses Pre-tax profit(loss) Post-tax profit (loss) Basic earnings per share(kobo) Gross dividend Cash dividend per share (kobo) Net Assets per share (kobo)

64,089 64,089 41,120 22,889 17,408 72 2,290 3,263 2,857 446 1,409 220 1,963

7.1 7.1 6.7 7.3 5.0 24.9 1.9 27.5 70.3 70.2 10.0 10.0 22.0

35,452 35,874 341 15,496 51,370

7.1 7.2 29.2 3.3 5.9

33,108 33,480 264 15,005 48,486

3,832 14,823 27,862 10,930 38,792

-3.6 -14.9 -6.1 28.5 1.6

3,974 17,414 29,670 8,508 38,178

320 12,578

0.0 22.0

320 10,308

Balance Sheet Assets: Fixed assets Total long term assets Trade debtors Current assets Total assets Liabilities: Trade creditors Bank loans Current liabilities Long-term liabilities Total liabilities Equity Funds Share capital Total Equity Funds

popular brands include Teem Lemon, Mountain Dew and aquafina. Its shares were listed on the Nigerian Stock Exchange (NSE) in 1959. It stands alone as the only publicly quoted soft-drink company in Nigeria. Affelka S A is the majority core investor in 7-Up with total equity stake of 72.97 per cent.

The board and management remained unchanged during the year. Faysal El-Khalil still chairs the board while Mr Sunil Sawhney leads the executive management team as managing director and chief executive. The company broadly complies with extant codes of corporate governance and best practices.

2013 %

2012 %

24.5 21.3 54.2 117.8

21.3 17.5 61.2 168.9

Profitability Gross profit margin Pre-tax profit margin Return on total assets Return on equity Dividend cover (times)

35.7 5.1 6.4 22.7 2.0

35.6 4.3 5.3 16.3 1.3

Efficiency Pre-tax profit per employee (Nm) Staff cost per employee (Nm) Cost of sales, operating exp/Turnover

0.88 2.27 91.3

0.70 2.04 92.1

Liquidity Current ratio Working capital/Turnover Debtors/Creditors

0.56 -19.3 8.9

0.51 -24.5 6.6

THE NATION MONDAY, SEPTEMBER 23, 2013

30

EQUITIES NIGERIAN STOCK EXCHANGE

Investors swoop on Unity Bank, penny stocks

DAILY SUMMARY AS AT 13-09-13

I

NVESTORS appeared to be factoring immediate to short-term prospects of emerging low-priced stocks into their valuations as significant increase in open buy orders for low-priced stocks highlighted the renewed recovery at the stock market.

Against the background of foreign investors' interests in Unity Bank Plc, investors appeared to be scrambling for the shares of the banking sector's lowest-priced stock.

Unity Bank recorded the second highest capital appreciation at the stock market last week with a gain of 32 per cent to close at 66 kobo.

Market analysts said the strong rally by Unity Bank might not be unconnected with the reports of expressions of interests in the bank by some foreign investors. Three major investors, Lagos-based Verod Capital Management, Development Partners International (DPI), a United Kingdombased firm; and Bank of Africa, an intercontinental banking and investment conglomerate were said to be prospecting investments in Unity Bank.

DPI, which was established in London in 2007, was reported to have indicated willingness to make a commitment of up to $200 million in Unity Bank plc. DPI currently manages a $400 million private investment fund and is in the process of raising a further $500 million in investment funds.

With an investment portfolio cutting across several sectors pan-Africa, there is high level optimism among finance analysts that DPI's entry into Nigeria's banking industry through Unity Bank will redefine the retail market segment and hike the stakes in terms of competition.

•Power business boosts Transcorp's prospects

By Taofik Salako

One of DPI's most recent equity investments was the 67 per cent equity stake in Mansard Insurance, now Nigeria's third largest insurance companies.

Verod Capital Management has also indicated interest in investing as much as $160 million in Unity Bank. Verod, which is focused on acquiring majority or minority equity stakes in businesses with strong market position, free cash flow potential and substantial value creation through growth and operational improvement, was said to have considered Unity Bank as a good investment choice.

Market analysts said investors saw strong potential in Unity Bank, which had opened the week at its nominal price of 50 kobo per share.

Analysts said although there were concerns about liquidity for low-priced stocks, otherwise known as penny stocks, investors were enticed by the substantial capital gains that could follow the realisation of some of the emerging deals on low-priced stocks.

The impending take-over of the Ugheli Power Plant by Transnational Corporation of Nigeria (Transcorp) Plc also boosted investors' valuations of the conglomerate. Transcorp was the most active stock during the week, a bullish rally that saw its share price rising by 11.11 per cent to N1.50.

Thomas Wyatt topped the gainers' list, in percentage terms, with a gain of 33.33 per cent to close at 96 kobo. Airline Services Logistics rose by 15.22 per cent to N3.86.

Transnationwide Express, which has outlined a business development plan, rose by 15.04 per cent to N1.30. International Energy Insurance's share price appreciated by 14.29 per cent to 72.

UAC of Nigeria rode on the back of sale of 49 per cent equity stake in its fast food restaurant business-UAC Restaurants Limited, to a South African firm-Famous Brands Limited to record the highest gain by a large-cap stock during the week. UACN's share price improved by 11.54 per cent to N60.80.

Late price rallies moderated streak of losses that dominated the week, leaving the market with a modest weekon-week return of 0.25 per cent.

The All Share Index (ASI), the common index that tracks all equities on the NSE, closed at 36,188.72 points as against its week's opening index of 36,098.07. Aggregate market capitalisation of all equities increased from its value on board of N11.494 trillion to close the week at N11.527 trillion. The NSE 30 Index inched up by 0.31 per cent, underlining the gains by some highly capitalised stocks.

Total turnover stood at 1.51 billion shares worth N12.06 billion in 24,983 deals. The financial services sector contributed 1.11 billion shares valued at N6.65 billion in 13,369 deals; representing about 73 per cent of total turnover volume for the week. The conglomerates sector, which was largely driven by Transcorp, placed second on the activity chart with a turnover of 224.98 million shares worth N810.38 million in 1,300 deals.

The trio of Transcorp, Wapic Insurance Plc and Diamond Bank Plc accounted for 563.97 million shares worth N1.47 billion in 1,303 deals, contributing 37 per cent of market's volume.

DAILY SUMMARY AS AT 13-09-13

THE NATION MONDAY, SEPTEMBER 23, 2013

31

MONEY LINK EDC confab on SMEs funding coming

Banks review liquidity positions over CBN policies

D

EPOSIT Money Banks (DMBs) are currently re-assessing their liquidity positions on exposures to Central Bank of Nigeria (CBN’s) Standing Lending Facility (SLF) window and repurchase transactions, The Nation has learnt.

This becomes necessary following recent policy changes by the CBN such as the increase to 50 per cent in the Cash Reserve Requirement (CRR) for public sector deposits, reduction of banks’ NetOpen Position Limit (NOPL) to one per cent and reduction in time to use forex purchased from the Wholesale Dutch Auction System (WDAS) to 48 hours. The policy changes will be positive for the naira.

The SLF, given at 14 per cent to banks

Stories by Collins Nweze

by the CBN, is an overnight credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value.

Confirming this development, Currencies Analyst at Ecobank Nigeria, Olakunle Ezun said the lenders are taking the step to help them (DMBs) manage liquidity and ensure balance sheet stability.

However, he warned the moves could be counter-productive in the longer term by undermining market confidence, which in turn could destabilise market development.

According to him, the policies remain positive so long as it supports the naira

and reveals the health and soundness of the banking system by clarifying banks’ liquidity levels in the short term.

“Removing some banks’ access to the SLF could reveal illiquidity, highlighting reliance on short term official funding that cannot be sourced from the interbank market. However, a bank accessing the SLF window as an alternative to interbank funding does not suggest it is experiencing liquidity constraint,” he said.

He said the CBN intervention in forex market has helped stabilise the naira around N162 to a dollar adding that the liquidity management efforts are aimed at tightening restrictions on banks’ sources of funding, and has significantly tightened the interbank money market.

•CBN Governor, Sanusi Lamido Sanusi

of growth potential. They are West Africa which include Nigeria and Ghana; East Africa- Kenya, Uganda, Rwanda and Tanzania and Southern Africa namely, South Africa, Angola, Mozambique, Zimbabwe and Zambia.

Nigeria, the second largest economy in Africa, had an integration score of 40.6 at the end of 2012 on the Visa Africa Integration Index, improving from 37.7 at the start of 2011. The gain reflects greater regional integration; though Nigeria’s

global integration has remained static over the same period.

Professor Adrian Saville, Visiting Professor of Economics at the Gordon Institute of Business Science (GIBS) in Johannesburg said that Africa is still the least integrated region in the world, but there are signs of change. “While improving off a modest base, the countries that make up the Index have undergone positive structural transformation over the past decade.

E

Visa inaugurates African Integration Index

V

ISA in Nigeria has launched its Africa Integration Index that measures the degree of economic integration within key trade corridors of sub-Saharan Africa, namely West Africa, East Africa and Southern Africa.

The report, jointly produced by the African Development Bank, the World Bank and the World Economic Forum, said closer regional integration would be crucial in addressing underlying weaknesses in Africa’s long-term competitiveness and ensuring that the continent delivers on its massive growth promise.

Country Manager for Visa in West Africa, Ade Ashaye said during the launch in Lagos that there is growing evidence that supports the argument that those cross-border interactions and openness drive economic growth and socio-economic advancement.

“Our objective is to construct an index for a number of selected sub-Saharan African countries to measure their global and regional integration

based on recent data. We want to better understand Africa to help unleash the enormous growth potential in electronic payments on the continent, now the heart of the developing world,” he said.

He added that the Visa Africa Integration Index is particularly relevant given the release of the Africa Competitiveness Report 2013 earlier this year.

The study offers a detailed analysis of key country clusters in sub-Saharan Africa, revealing strengths and areas

Access Bank mulls support for education

A

CCESS Bank has announced the introduction of an innovative solution to support the education sector in the country.

Speaking at the September Power Breakfast Series in Lagos, the bank’s Executive Director, Business Banking Division, Obeahon Ohiwerei said the lender designed the innovative financial solution with consideration for the dynamics of school business.

He said the solution is comprehensive and will cater for specific needs of the various schools within the sector – primary, secondary and tertiary institutions as well as the constituents of the value-chain, which include teachers, suppliers, parents and other critical stakeholders.

He informed the operators, particularly private school proprietors and other promoters that the forum re-

mains an interactive one for Small and Medium Scale Enterprises (SMEs) and entrepreneurs. According to him, “the monthly Power Breakfast Series is the Bank’s way of integrating our SMEs customers with innovative financial solutions. Today, we are engaging operators in the education sector to proffer solutions that will address most of the challenges facing the sector.”

FGN BONDS

DATA BANK

Tenor

Amount N

Rate %

M/Date

3-Year 5-Year 5-Year

35m 35m 35m

11.039 12.23 13.19

19-05-2014 18-05-2016 19-05-2016

WHOLESALE DUTCH AUCTION SYSTEM Amount Amount Offered ($) Demanded ($) 350m 150m 350m 138m 350m 113m

MANAGED FUNDS Initial Current Quotation Price Market N8250.00 5495.33 N1000.00 N552.20

NIDF NESF

Price Loss 2754.67 447.80

INTERBANK RATES 7.9-10% 10-11%

PRIMARY MARKET AUCTION (T-BILLS) Tenor 91-Day 182-Day 1-Year

Amount 30m 46.7m 50m

Rate % 10.96 9.62 12.34

Date 28-04-2012 “ 14-04-2012

GAINERS AS AT 13-09-13

SYMBOL UNITYBNK OANDO IPWA THOMASWY INTENEGINS UACN NAHCO CCNN PZ UBA

O/PRICE 0.60 10.00 0.75 0.88 0.66 56.10 5.99 8.54 35.00 7.30

C/PRICE 0.66 11.00 0.82 0.96 0.72 60.80 6.38 9.09 37.00 7.70

CHANGE 0.06 1.00 0.07 0.08 0.06 4.70 0.39 0.55 2.00 0.40

O/PRICE 7.40 0.84 1.20 0.55 1.39 3.88 2.82 114.50 157.00 1.45

C/PRICE 6.66 0.76 1.10 0.51 1.30 3.66 2.68 110.00 151.35 1.41

CHANGE 0.74 0.08 0.10 0.04 0.09 0.22 0.14 4.50 5.65 0.04

Exchange Rate (N) 155.2 155.8 155.7

Date 2-7-12 27-6-12 22-6-12

CAPITAL MARKET INDEX

NGN USD NGN GBP NGN EUR NIGERIA INTER BANK (S/N) (S/N) Bureau de Change (S/N) Parallel Market

Year Start Offer

Current Before

C u r r e n t CUV Start After %

147.6000 239.4810 212.4997

149.7100 244.0123 207.9023

150.7100 245.6422 209.2910

-2.11 -2.57 -1.51

149.7450

154.0000

154.3000

-3.04

152.0000

153.0000

155.5000

-2.30

153.0000

154.0000

156.0000

-1.96

DISCOUNT WINDOW Feb. ’11

July ’11

MPR

6.50%

6.50%

12%

Standing Lending Rate ,, Deposit Rate ,, Liquidity Ratio Cash Return Rate Inflation Rate

8.50% 4.50% 25.00% 1.00% 12.10%

8.50% 4.50% 25.00% 2.00% 12.10%

9.50% 5.50% 30.00% 2.00% 11.8%

July ’12

NIBOR Tenor 7 Days 30 Days 60 Days 150 Days

NSE CAP Index

27-10-11 N6.5236tr 20,607.37

Rate (Previous) 4 Mar, 2012 9.0417 9.6667 11.2917 12.1250

Rate (Currency) 6, Mar, 2012 10.17% 11.46% 11.96% 12.54%

Movement

28-10-11 N6.617tr 20,903.16

% Change -1.44% -1.44%

MEMORANDUM QUOTATIONS Name

LOSERS AS AT 13-09-13

SYMBOL JOSBREW ABCTRANS COSTAIN ROYALEX TRANSEXPR FCMB ETERNA MOBIL TOTAL CUSTODYINS

Amount Sold ($) 150m 138m 113m

EXHANGE RATE 6-03-12 Currency

OBB Rate Call Rate

NTERPRISE Development Centre (EDC) of Pan African University Small and Medium Scale Enterprises (SMEs) annual conference meant to support the subsector to fill funding gap will be holding in Lagos on Wednesday.

In a statement, the EDC said it will partner with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Lagos Chamber of Commerce and Industry (LCCI) and Heritage Bank to ensure that the vent is a success.

It said the theme of this year’s event is ‘Models, Markets, MoneyPositioning Your Organisation.’

Group Head, SME, Heritage Bank said the lender is sponsoring the conference as part of its commitment to helping SMEs build the capacity needed to grow their business. He said that the sponsorship is also to create opportunities for more SME operators to know and access the various SME funding support services of Heritage Bank.

“We want to help SMEs grow but we also realise that in addition to money, they need knowledge. You can give money to somebody but how does he manage the money?

They also need knowledge in other areas like human resource, marketing, information technology, and how to put these things together to form a structure.

“So our partnering with EDC is on the training, and to reach a larger set of people. They have a lot of alumnus, thousands of people they have trained. So that is how we will reach them, because they already have a structure, they have passed through the training. So we are saying that those who already have a structure, should come and take money from us,” he said.

Offer Price

Bid Price

ARM AGGRESSIVE GROWTH 9.17 9.08 KAKAWA GUARANTEED 1.00 1.00 STANBIC IBTC GUARANTE INVE 141.19 140.70 AFRINVEST W.A. EQUITY FUND 153.18 152.58 LOTUS CAPITAL HALAL 0.80 0.78 BGL SAPPHIRE FUND 1.16 1.16 BGL NUBIAN FUND 1.18 1.16 FBN MONEY MARKET FUND 100.00 100.00 FBN FIXED INCOME FUND 1,000.00 1,000.00 NIGERIA INTERNATIONAL DEB. 1,824.63 1,820.08 PARAMOUNT EQUITY FUND 13.64 12.97 CONTINENTAL UNIT TRUST 1.39 1.33 CENTRE-POINT UNIT TRUST 1.87 1.80 STANBIC IBTC NIG EQUITY 11,004.94 10,680.29 • ARM AGGRESSIVE • KAKAWA GUARANTEED • STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUNDARM AGGRESSIVE • OPEN BUY BACK

Bank P/Court

Previous 04 July, 2012

Current 07, Aug, 2012

8.5000 8.0833

8.5000 8.0833

Movement

THE NATION MONDAY, SEPTEMBER 23, 2013

32

ISSUES

•One of the housing schemes between the Federal Government and the states

Housing: Kudos, knocks for Pepple

Opinions differ on the peformance of the former Minister of Lands, Housing and Urban Development, Ms Ammal Pepple. While some applaud her, others dissent, writes SEYI ODEWALE

Continued on page 33

THE NATION MONDAY, SEPTEMBER 23, 2013

33

ISSUES

Housing: kudos, knocks for Pepple Continued from page 32

W

HEN on Wednesday, September 11, 2013, the former Minister of Land, Housing and Urban Development, Ms Ammal Pepple, was booted out along side eight of her colleagues, the built environment and construction industry was jolted.

To the professionals in the sector, she was doing her best within the limited resources at her disposal.

The Minister of Information, while announcing her exit, said President Goodluck Jonathan "has studied the way his government has worked, he has set targets for the next two years and what he is doing is to adjust his cabinet to realise the objectives of his transformation agenda. That is exactly the reason he has come out with these changes at this time".

But the change, particularly in the leadership of the ministry, where Ms.People held sway, was making some strides. Two reasons were allegedly given for the sack.

First was that they were fired for poor performance, while the second, was political.

Pepple's ministry, observers said, could not have been classified as one of those ministries that did not perform, going by what she met on ground when she assumed office.

According to them, most of who are professionals in the built environment and the construction industry, she worked assiduously to chart a proper cause for the ministry. The encouragement she gave to the idea of Public-Private Partnership (PPP) in the built environment, they argued, was beneficial to the private sector, the public and the citizens. Many housing schemes were done, which ordinarily could have been delayed if private partnership had not been encouraged to participate.

They listed some of her major achievements to include the formulation of the National Housing and Urban Development Policies; having prototype housing Schemes at Asaba, Kuje and Lagos for 1,932 beneficiaries; helping to access Estate Development Loans from Federal Mortgage Bank for 30,930 beneficiaries; establishment of Primary Mortgage Institutions for 1284 beneficiaries; Public-Private Partnership (Contractor Finance Initiative) for 103,602 beneficiaries; provision of planned settlements and model cities with basic services; establishment of a factory to produce light gauge steel and provision of social and affordable housing scheme.

No fewer than 24,188 housing units construction, it was learnt, was on-going. The PPP unit of the Ministry alone, has engaged 89 developers to build 17,267 houses on a total expanse of 889 hectares.

Her housing policy introduced a new element of social housing, thus making every citizen to count. Houses would not be for the rich, or the low income earner, but for the poorest of the poor. It emphasises the type of housing that will ensure that Nigerians will have a shelter.

Specifically, her housing policy was to address the deficit of 17 million housing units, which requires that at least, additional 720,000 housing units per annum be built, not only to replenish decaying housing stock, but to meet rising demand and avert a further housing crisis by 2020.

According to the National Transformation Agenda (2011-2015) of President Jonathan, N60 trillion is required to provide 17 million housing units at N3.5 million per unit to bridge the gap.

The sector, she believed, has the capacity to reduce crimes and other vices in the society, as young men who would have

•Pepple

• Awobodu

• Ajayi

• Akinola

been lured into crimes are taken off the streets and engaged. "The housing sector has the capacity to reduce crime rates, insurrection, militancy, terrorism and substantially address wealth distribution and security problems, while our cities are centres of economic growth and centres for commerce and wealth creation, and for the promotion of healthy living environments," she reasoned.

The policy, endorsed by the Federal Executive Council on June 19, 2012, replaced the 1991 Housing Policy as well as the Urban Development policy Initiated in 1997.

The policy came after a painstaking consultation with all the stakeholders, including the organised Private Sector, the Civil Society and National Economic

Council.

Other achievements, according to them, include the eestablishment of Mortgage Origination Standards and Training Institutions to manage risk, using best practices; participatory slum upgrading and the establishment of School of Architectural and Building Technician Scheme, Kuje, whose hostels and admin blocks have been completed. The school is being upgraded to training of artisans in the construction industry.

She was instrumental to the opening of loan window by the FMBN using co-operative structures to expand mortgage financing to the non-salaried informal sector and the development of a joint working program with the Cities Alliance

‘

We went to the ministry severally, after promises were made to us. We have been on it for the past 10 years, yet nothing has been done. The last time we were at her Ministry, we were told that our letter had been referred to the Director of Legal Services. We have even involved Justice Oguntade, the retired justice of the Supreme Court. We only hope that the person President Jonathan would appoint would have time to see to our plight

’

(World Bank Group) to undertake a comprehensive survey on housing that will assess and identify data gaps in the sector Assessing Pepple's tenure in Lagos, a builder and President, Building Collapse Prevention League (BCPL) Mr Kunle Awobodu, said her tenure, was a blessing to the construction industry.

"She was a blessing to the industry, especially with her support for the National Building Code that was revised shortly before her sack. The code, for long, has been the albatross of the sector for some time.

“People just build anyhow without any recourse to the laws governing building, and when this happened, what do we have? Building collapse. Of course, you can see the number of lives lost to haphazard way of doing business in the built environment and the sector at large. But with the code in place and the confidence that both the National Assembly and the states' Houses of Assembly would endorse it, you will see that she will go down in history as someone whose contributions and support for the code help in saving lives that could have been wasted if the code was not in place," Awobodu said.

Her exit, Awobodu added, should not affect strides made in the provision of affordable housing units to the generality of the people.

"The policy, I want to implore, should not end with her departure from the ministry. Though, there are still much to be done in that regards, nevertheless, more houses should be built as a matter of priority to soothe the pains of lack of shelters to those in the cities and possibly, urban setting, to mitigate rural-urban migration," he said.

But some landlords dispossessed of their land in Aboru Housing Scheme, Lagos were indifferent by her exit. Their allocations, which were on 'site and services' scheme, were taken from them and they are yet to restore them Their argument is that she did not do the needful about their plight while in office. The plight arose from the take up of their allocations by the government after being duly assigned to them by the government.

"We went to the ministry severally, after promises were made to us. We have been on it for the past 10 years, yet nothing has been done. The last time we were at her Ministry, we were told that our letter had been referred to the Director of Legal Services of the ministry. We have even involved Justice Oguntade, the retired justice of the Supreme Court. We only hope that the person President Jonathan would appoint would have time to see to our plight," their President, Olusegun Akinola, said.

A real estate developer, Adetokunbo Ajayi of Propertygate Development and Investment Plc, viewed Pepple's efforts at re-enacting mortgage financing scheme, which according to him, has hitherto, been bogged with many problems, as positive steps taken by her ministry. ‘’I hope anyone coming to replace her would follow this diligently and ensure that there is no derailment from that course,’’ he said.

Ms. Pepple, who was born on June 16, 1949 to the Perekule Royal House in Grand Bonny Island in Rivers State, started her career as a lecturer in Political Science at the Rivers State College of Education, Port Harcourt.

She served as Deputy Secretary, Constituent Assembly, Federal Republic of Nigeria; Secretary National Assembly Provisional Office Abuja; Clerk Designate, Senate, National Assembly, and Clerk of Senate, National Assembly.

She was an Administrative Secretary, Social Democratic Party, Rivers State and Sole Administrator, United Nigeria Congress Party. Ms. Pepple also served as Permanent Secretary in the Ministries of Transport, Information and National Orientation, Petroleum Resources, Commerce, Agriculture and Water Resources, and Finance. She was also at the Federal Civil Service Commission.

In 2008, she served as the Head of Service of the Federation. She was a Director of Zenith Bank Plc between June 23, 2010 and July 2011. She was a Director of Oando Plc between January 31, 2010 and July 22, 2011.

34

THE NATION MONDAY, SEPTEMBER 23, 2013

INSURANCE

‘Rising unemployment affecting insurance growth’ Over the years, the insurance industry has been bedevilled with a myriad of problems that have hindered its growth. OMOBOLA TOLU-KUSIMO reports that rising unemployment continues to pose challenge to the industry.

W

HEN he spoke recently about the unemployment situation in the country, everybody listened to him.

The Team Leader, World Bank, and representative of World Bank Country representative, Prof Foluso Okunmadewa, said unemployment rate in Nigeria now stands at 22 per cent. Of this figure, youth unemployment accounts for 38 per cent.

He urged the Federal Government to solve the problem, saying that the youth holds the key to growing the economy.

The World Bank chief warned that achieving the set goals of Vision 20:2020 may remain a wishful thinking if youth unemployment is not checked, adding that 15 to 35-year olds account for close to 60 per cent of the country’s population.

For the insurance industry that has been struggling to survive, this is not good news as people who are not employed cannot contemplate buying any insurance product.

Regulator of the risk-bearing industry, the National Insurance Commission (NAICOM) said the fortunes of the industry and that of the economy will witness a boost if majority of the citizens take one form of insurance cover or the other.

According to figures from the regulator, only 800,000 adults have insurance policies.

NAICOM Commissioner, Fola Daniel believes the level of insurance penetration must be increased significantly such that majority of the people would have one form of insurance cover or the other for the nation’s economy to grow as expected.

He said based on studies carried out by

• Daniel Stories by Omobola Tolu-Kusimo

NAICOM, the country will attain rapid and sustained economic growth if the insurance sector’s penetration is deepened.

But experts in the industry have said the penetration of insurance in the country is essentially tied to availability of disposable income.

Former President of the Chartered Insurance Institute of Nigeria (CIIN), Mr. WoleAdetimehin said the state of the economy does not encourage people to buy insurance policies.

• Adetimehin

He said going by the record of the World Bank, it is time the government began to pay more attention to its policies and projects on creating jobs in the country.

He said: “If the records to the World Bank are true, the government of the day needs to look at ways to reduce the rating.

“For any economy to grow, there is the need for an enabling environment. We have to reduce the rate of unemployment. When people can get jobs, insurance will sell at micro level because this will stimulate the demand for products and services in general terms.

“These are factors that will impact on the

industry. If we go by the transformation agenda of the administration of NAICOM, there should to be growth but it still need to be worked upon. NAICOM is doing a lot to grow the fortunes of the industry so it can contribute significantly to the nation’s GDP. It has embarked on sensitising the operators to embrace micro insurance. But a lot needs to be done in terms of revamping the economy.”

Speaking about the current state of the insurance industry, Deputy Governor, Central Bank of Nigeria (CBN), Mr. Tunde Lemo said one major challenge confronting the sector is its very low level of penetration and patronage.

According to the CBN chief, non-life insurance penetration stood around one-half per cent or only one-seventh of the average penetration of the Organisation for Economic Cooperation and Development (OECD) countries in 2010 while life insurance penetration is even lower at around 0.2 per cent.

Lemo said: “The comparison remains the same when a better measurement of insurance utilisation is used, which takes into consideration dependence on the economic development of the country as well as the benchmark insurance penetration against the world insurance penetration average (BMIP) for the non-life sector.

“The Nigerian BMIP value indicates that the insurance industry is underdeveloped with only 43 per cent of the world average insurance penetration at the Nigerian 2010 GDP per capital level, placing Nigeria at the bottom of comparable countries, such as Angola, Ghana, Kenya, Morocco and South Africa, with the exception of Egypt.”

Insurers record high cash flow, says NAICOM

C

OMMISSIONER for Insurance, National Insurance Comission (NAICOM), Mr. Fola Daniel has revealed that the on-going implementation of the ‘No premium, no cover’ law which started on January 1, this year has significantly improved the cash flow of insurance institutions in the country.

The NAICOM boss gave this hint at thesensitisation workshop for stakeholders, in new Karu, Nasarawa State. A channel he said is expected to raise public awareness on the key initiatives of the commission aimed at further opening up the market, and by extension increasing the sector’s contributions to the Gross Domestic Product (GDP) of the nation.

He said it is expected that this positive turn of events would impact on the capacity of operators to settle claims promptly,

thus removing a major sore point in the relationship of insurance consumers and service providers.

Daniel stressed that the commission had to implement the law on ‘No premium, no cover’ law in order to put a stop to the vexed issue of delayed or non-payment of insurance premium by the insured.

Section 50 (1) of the Insurance Act 2003 stipulates that the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless the premium is paid in advance.

He explained that invariably, it presupposes that no insurance cover shall be granted by any insurance company without having received the premium.

Daniel said the insurance sector has great potentials for massive growth.

“You will agree with me that the population and size of the country, if adequately harnessed, give an added advantage to the insurance industry to further develop its market,” he said.

He noted that the various initiatives put in place by the Commission in recent times were all geared towards turning round the fortunes of the sector.

He said to ensure adequate understanding and build capacity among the stakeholders, NAICOM has resolved to conduct a series of workshops and seminars for stakeholders adding that the sensitisation programme in Nasarawa was among the workshops and seminars earmarked to inform and educate stakeholders towards the attainment of mutually beneficial relationship between organisations.

“The insurance industry has witnessed

tremendous changes in recent times owing to the new reforms embarked upon by NAICOM. “These reforms include the introduction of Risk Based Supervision, migration to International Financial Reporting Standard (IFRS) from the Nigerian Generally Accepted Accounting Principles (NGAAP); Market Conduct Reforms, Claims Settlement Reforms, Financial Inclusion and others, all geared towards developing the industry and improving the general perception about insurance.”

According to him, these reforms were in line with government’s Vision 20:2020 of deepening insurance penetration to become the insurance industry of choice among the emerging markets in terms of capacity, safety, transparency and efficiency.

STI settles N944m claims in six months

S

OVEREIGN Trust Insurance (STI) Plc said it has paid a total of N944.5 million as claims to its customers across the country in the last half of the year.

The breakdown of the amount paid so far shows that N351million was settled as claims in the first quarter of the year while N593million was paid in the second quarter of the year.

Managing Director fo the firm, Mr Wale Onaolapo, who disclosed this, said the claims portfolio of the firm in the first half of the year

comprise energy claims settled at N401.6million.

He said while motor insurance claims peaked at N218.4million, fire insurance claims got N83.8million. He said a total of N128.5million was settled as claims under the general accident insurance. Marine insurance claims amounted to N100.4million while engineering insurance claims totalled N11.7million.

Onaolapo reiterated the commitment of the company to prompt claims settlement adding that it is the only way the company can gener-

ate more confidence from its customers and the insuring public at large.

He said: “Whenever the need arises to settle claims, STI does not see it as doing the customer a favour, rather, we are concerned about making the customer delighted with our seamless claims process which ultimately will lead to customer satisfaction.

“We are only fulfilling our part of the agreement made at the point of picking up the business that all genuine claims will be settled as and when due.”

• Onaolapo

Life insurance is financial Prozac

O

WNERS of life insurance report their being more fulfilled and optimistic in their lives compared to those without life insurance coverage, according to findings from the Keep Good Report, a survey given to more than 2,000 Americans and sponsored by New York Life.

The survey explored people’s attitudes and expectations and touched on how they cultivate goodness through work and life balance, personal finance and relationships. It was conducted by Mathew Greenwald & Associates, a public opinion and market research company.

People who own life insurance are optimistic. According to the survey, life insurance owners were significantly more optimistic than nonowners. Those with coverage were happier, reported a better quality of life and also felt their

quality of life is better than it was five years ago.

•42 per cent of life insurance owners are very happy with their lives vs. 32 per cent of nonowners.

•64 per cent feel their quality of life is better than the average American vs. 51 per cent of non-owners.

•43 per cent say are on track in terms of living life as a good person vs. only 37 per cent of non-owners.

“We know from other research that life insurance ownership generally reveals a more financially prepared person, but the interesting twist here is that this financial preparedness also permeates to a person’s positive outlook and feeling of overall goodness in their lives,” says Brian Perlman, partner at Mathew Greenwald & Associates and a psychologist.

It’s not just about money While 92 per cent of those surveyed felt having enough money to protect the family against life’s uncertainties is important to living life as a good person and 91 per cent said being selfsufficient in retirement is important to living life as a good person, obviously there are other factors that play a role in optimism.

Perlman explains life insurance isn’t just about a pot of money you’re going to give to your kids, but it’s also the idea that you’ve taken care of them. It provides peace of mind and allows you to focus on other things, leading to contentment and optimism.

Aaron Nicklay, an agent for Farmers Insurance in Bloomington, Minn., says, “I’ve found

that the majority of my clients misunderstand the cost of life insurance, and once they realise how cheaply they can acquire it and how well it works into a monthly or annual budget, they are relieved that they aren’t going to have to make a choice between sacrificing something they want and doing what they know is right.”

The best-laid plans People typically buy life insurance when they are married and have kids.

“I think, overall, people with families are happier,” says LiranHirschkorn, an independent agent and founder of ChooseTerm.com. “In addition, people who buy life insurance are also responsible.

• Culled from insure.com

THE NATION MONDAY, SEPTEMBER 23, 2013

35

P ENSION

Contributors to own homes soon, says PenCom A

RE you a contributor or retiree under the Contributory Pension Scheme (CPS) of the Pension Reform Act, 2004, living in the Southwest?

If your answer is yes, this is good news for you.

If the plans of the National Pension Commission (PenCom) sails through, contributors under Contributory Pension Scheme (CPS) may soon to utilise part of their Retirement Savings Account (RSA) to part-finance the acquisition of lowcost houses in their states.

Speaking at the opening ceremony of the Southwest Zonal Office of PenCom over the weekend, Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu said the commission is exploring the possibility of allowing contributors to utilise their RSA balances to part-finance the acquisition of low-cost houses as part of ongoing efforts at enhancing contributors’ satisfaction.

She stated that the commission expects that when they eventually come on stream, these facilities will be made vailable to states that have

• Inaugurates new zonal office in Lagos Stories by OmobolaTolu-Kusimo

fully implemented the scheme.

Meanwhile, PenCom has decentralised the activities of the commission by opening a zonal office in Lagos State to cater for the needs of contributors and retirees in the geo-political zone of Ekiti, Lagos, Ogun, Ondo, Osun and Oyo states.

By this action, she said the commission is seeking to reduce the need for contributors and retirees to travel from various parts of the country to Abuja to access the agency’s services.

According to her, the presence of PenCom in the zone would facilitate closer interaction states’ pension offices by assisting them to comply with the CPS. Mrs Anohu-Amazu said the choice of Lagos to host the Southwest zonal office stemmed not

only from its pre-eminent position as the economic nerve centre of the country but was also justified by its record of being one of the pioneers in implementation of the CPS, having enacted its law in 2007.

She enjoined stakeholders to avail themselves of the commission’s services by visiting the office to make enquiries, lodge complaints, and seek enlightenment on the CPS noting that the SouthWest Zonal Office has a mandate to effectively extend services to all the six states of the zone.

According to her, the commission has also reviewed its Investment Regulations with a view to facilitating the investment of pension funds towards reducing the huge infrastructure gap in the country.

She said: “Already several states

in the federation have so far benefitted from the pool of funds towards reducing the huge infrastructure gap in the country. It is also worthy to mention that several states have also benefitted from the pool of funds generated by the CPS through the issuance of development bonds.

“The establishment of Zonal Offices in all the six geo-political zones of the country is in a bid to decentralise its activities and bring it closer to the contributors and retirees. This is also due to our renewed focus on efficient service delivery.”

According to her, the commission remains steadfast in the implementation of the CPS, adding that within the few years of its existence, some modest achievements have been realised.

“Foremost among such achievements is the consistent payment of retirement benefits to employees who retired under the scheme in 2007 without the characteristic bottlenecks experienced in the past,” she said.

•From left: Ogun State Governor, Ibikunle Amosun; Chairman, Senate Committee on Establishment and Public Services, Dr. Aloysius Akpan Etok; Lagos State Governor, Babatunde Fashola and Mrs Anohu-Amazu during the event.

‘Pension bill will be ready soon’ HAIRMAN, Senate Committee on Establishment and Public Services, Senator Dr. Aloysius Akpan Etok, has disclosed that Pension Reform Bill on the floor of the National Assembly will soon be passed into law.

According to him, the bill which scaled through Second Reading in May this year, is at the final stage.

The bill seeks to repeal the Pension Reform Act (No.2) 2004 and Enact the Pension Reform Act 2013 to make ‘Provision for Contributory Pension Scheme.’

Major highlights of the Pension Reform Act, 2004 are that the scheme would be contributory and fully funded, mandatory for organisations in the private sector

C

with five staff and above, investment of pension contributions in safe but high yielding ventures that would increase faster than the rate of inflation and exchange rate deterioration to ensure enhanced pension package on retirement.

It is to provide for full pension rights in the event of dismissal and the deposits in the Retirement Savings Account cannot be deducted by employers for any financial obligations.

Leading debate on the proposed law, Senate Majority Leader, Senator Victor Ndoma Egba said lawmakers were living witnesses to recent events relating to the management of pension funds in the country.

He identified the following inad-

equacies of the extant law: Non remittance of pension contributions to the Pension Fund Administrators by Ministries, Departments and Agencies (MDAs); delay in payment and sometimes non-payment of gratuities to pension retirees; under-payment of retirement benefits; withdrawal of some security agencies from the scheme and corruption, misappropriation, embezzlement of the pension funds.

Senator Egba noted that even the Pension Reform Task Team set up to bring some sanity to the system worsened the plight of the pensioners.

The lawmaker disclosed that the thrust of the bill is to overhaul the entire structure and the scheme of

pension administration in the country including, the establishment of a uniform set of rules, regulations and standards for the administration and payment of retirement benefits for the public service in all tiers of government and the private sector.

Others are making provisions for the smooth operations of the contributory pension scheme; ensuring that every worker receives their retirement benefits as and when due.

He disclosed that the monthly contribution rate of the scheme is to be reviewed upward from 15 per cent to 20 per cent of the employee’s monthly income, with the employer contributing 12 per cent while the employee contributes eight per cent.

Consolidated Hallmark wins web award

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ONSOLIDATED Hallmark Insurance (CHI) Plc has emerged winner of the Best Web Site Content in the insurance category of the Web Jurist Annual Awards.

Phillips Consulting Limited announced the company’s prize recently The award is coming on the heels of CHI’s earlier emergence as overall winner in the insurance category during the Version 10.0.

According to the organisers, “Web-Jurist is the result of research conducted into website best practices and effectiveness.

It aims to identify the strengths and weaknesses of websites, as a business platform in the digital world, and also to determine the extent to which a website, being a tool in a company’s e-business initiative, is successful in achieving the essence of its e-business strategy.”

Metrics for the ratings of insurance companies’ websites analyses the aesthetics, technical aspect, website content, and their e-financial services. Other aspects considered were the performance and accessibility of the sites.

CHI’s emergence as a consecutive winner in Versions 10.0 and 11.0 of the prestigious awards attests to the continued determination by the organisation to ensure optimal functionality of its e-pay-

ment portals, including the main website and a dedicated website for motor insurance transactions www.motorthirdpartyonline.com which it pioneered in the insurance industry in 2008.

Various customers of CHI Plc have continually taken advantage of the seamless transaction portals and the additional platform provided across Zenith Bank counters nationwide, for obtaining their motor insurance.

What you need to know about the new pension scheme

By Linda Diokpa

T

HE new pension scheme is contributory, fully funded, privately third party custody of the funds and assets based on individual accounts. It ensures that everyone who has worked receives his or her retirement benefits as and when due. It covers employees in the Public Service of the Federation, the Federal Capital Territory and the Private Sector of the economy.

The pensioners, employees who have three years or less to retire and the categories of persons covered by the provisions of section 291 of the 1999 Constitution of the Federal Republic of Nigeria are exempted from the new pension scheme. Any employee with more than three years to retire comes under the new pension scheme.

The new pension scheme is mandatory for all categories of employers and employees covered under the Pension Reform Act. There is no merger of private sector pension with that of the Public Sector pension since the sources of funding are not the same.

However, both are now being regulated under same rules and regulations. The main objectives of the Pension Reform Act 2004 are as follows: • To ensure that every person who worked in either the Public Service of the Federation, Federal Capital Territory or Private Sector receives his or her retirement benefits as and when due.

• To assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age and • To establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory and Private Sector.

This is different from the old pension scheme because most of the old pension schemes are not fully funded. Therefore, upon retirement, there were no ready funds to pay the pensioners.

The new pension scheme is fully funded. Money is contributed into individual employee’s Retirement Savings Account [RSA] and when he or she retires, there will be money in his or her RSA to pay his or her pension.

Private sector pension schemes will be allowed to continue provided if there is evidence to show that the pension scheme is fully funded at all times, any shortfall made up within 90 days, pension fund assets are segregated from the assets of the employer/company, the pension fund assets are held by a licensed Custodian and the scheme is specifically approved by the National Pension Commission (PenCom).

An employee shall make monthly contributions of a minimum of 7.5 per cent of the total of his or monthly emoluments [that is, monthly basic salary, transport allowance and housing allowance] into the RSA. The employer also shall contribute a minimum of 7.5 per cent of the employee’s monthly emoluments towards the retirement benefits of the employee.

However, an employer can make all the contributions on behalf of the employee without making any deduction from the employee’s salary except that such contribution by the employer shall not be less than 15 per cent of the monthly emoluments of the employee.

Your contributions are just savings out of your emoluments towards your old age and the employer’s contribution will only increase such savings.

Pension contributions are paid directly to the PFC to be held on the order of the PFA. A fully funded pension scheme exists where pension funds and assets match pension liabilities at any given time.

36

THE NATION MONDAY, SEPTEMBER 23 , 2013

EQUITIES WATCH

Email: taofad2000@yahoo.co.uk

Osun State Commissioner for Finance, Economic Planning and Budget, Dr. Adewale Bolorunduro in this interview with ADESOJI ADENIYI speaks on bonds and project financing through the capital market by the Rauf Aregbesola administration.

‘It makes sense to issue bond for developmental projects’

I

T is common knowledge that the Aregbesola administration took N30 billion bond from the Capital Market to finance public programmes. Why is this necessary?

All governments borrow, and they must.

This is because the type of responsibilities a government shoulders are things that cannot wait and things which need far more money than the government realises within the given space of time. Borrowing, however, must be controlled, for anything without control a means of mindless destruction. But as far as a state within Nigeria is concerned, borrowing is strictly regulated by the Central Bank of Nigeria as well as the Federal Ministry of Finance. The level of borrowing permitted to a state is relative to its monthly federal allocation, its Internally Generated Revenue, the size of its existing debt portfolio among other indicators of financial health.

Government borrowing is premised on the time-tested model that if credit is sourced to finance the right things like infrastructures and development of human capital, the environment is being fertilised for productivity.

Once such productivity is well nurtured, it matures into a stable economy with negligible unemployment and a robust base for revenue generation through taxes. This will in turn lead to a painless liquidation of existing indebtedness. Borrowing, therefore, is not the problem but the purposes of the loan. There are other details of the structure of the loan, its rate, term and moratorium etc.

I can assure you that the approach of the State Government of Osun under Governor Rauf Aregbesola to borrowing has followed a very carefully calibrated professional order.

We have remained mindful of all of our moral obligations to society as well as the public perception of our actions. We have taken the pains not to borrow on conditions that will hurt the state both now and in the future. In fact, all our borrowings are framed to make things easier for the future generations.

You will recall that at the inception of this administration it met an N18 billion term loan that threatened to asphyxiate the state. The structure of the loan meant an across-thecounter interest rate in the range of N650 million a month. At that time, the state’s IGR was about N300 million and monthly allocation from the centre stood at about N2.5 billion: all this for a state with a salary bill of N2 billion. When you do the arithmetic, it becomes clear that a loan of this nature will kill the state slowly. To add, the loan was to develop six stadiums across the state. Stadiums will not add economic value, except you are hosting the Olympics and the like. This was a strong enough trouble for us that we had to source a fresh credit line with favorable terms to liquidate that N18 billion debt as quickly as we can. The difference in the interest rates and other terms of the credit line meant a lot of savings for the state. The N30 billion we raised from the capital market was with terms far more public-friendly than the commercial bank short-term loan that was originally taken by the previous administration. All details of the bond are transparent and the information is in public domain as the records are kept by the Securities and Exchange Commission (SEC).

One last crucial reason a government borrows is to hedge against inflation. A road project costing N15 billion will cost N20 in the next two years. It only makes sense to hedge against such trends so long as the interest rate on the loan is below the calculated inflation rate.

Why must Osun be the first state in Nigeria to issue out Islamic bond which some people believe will only enslave the state to some Islamic investors?

We are not signing any agreement with any Islamic personality or Islamic organisation, be it local or foreign. We are not enslaving the state in any way through the issuance of this bond. Sukuk is like any other conventional bond with the only difference being its attraction of additional investors who will not support interest borrowing and vanity projects. Investors are welcome as a matter of open business without reference to their religious background.

The Sukuk is a fund not supervised or administered with Islamic system of laws or liturgy. Moreover, it is regulated in the strictest terms by SEC, on the same general principles by which other regular bonds are administered. Let us note that SEC is headed

by Arumeh Otteh, a Christian. It is very important to point out the nature of the regulations establishing the Sukuk under the laws of Nigeria as a secular state. When a person invests in the Sukuk, he becomes a bondholder, not a lender of cash. What he has in the fund is not cash but investment. SEC is directly responsible for managing the relationship between the bondholders and the state government. In other words, investors have no means of relating directly with the state government to initiate a conventional lender-borrower relationship. They must go through the SEC, following established guidelines that have weeded off sentiments that could in any form coerce or put pressures on the borrower or impose obligations that can upset the social order. All these measures have been taken by the SEC in formulating the guiding laws issuance of bonds so that the danger of a sour and oppressive borrower-lender relationship developing is not given a chance, to begin with. As for our being the first state, I think it is simply that someone has to be the first. It has its downside being the first in some instances, but perhaps, it is the reluctance to have to face the fire of this type of scrutiny that have made other states draw back hitherto. Professionally speaking, however, obtaining clearance from regulatory authorities to raise a bond is not a walk in the park. It is an undertaking that passes the camel through the eye of the needle. The balance sheet of the applicant

state is carefully combed in a process that takes about a year. Not many states can pass that stringent test of transparency and proven financial health.

Why haven’t states such as Zamfara and others in the north taken this step of Islamic financing options?

I believe it might substantially have to do with reasons I earlier on mentioned.

By implication is Osun now an Islamic state for being the first to adopt this method of financing option, more so, when you consider the Sharia jurisprudence and Islamic value system that may apply to this?

For a fact, the Sukuk bond is not administrated under an Islamic jurisprudence. SEC is the sole regulator of the Sukuk bond which it administrates under the secular laws of the Federal Republic.

Is this not a step toward the establishment of Sharia system of jurisprudence in Osun State?

From the public or your perspective I can understand this concern. Any Christian who is aware of the professional character of this funding system is bound to have justifiable fears and we recognised this all along as a government. We recognise the other side of the coin furthermore, namely, the inordinate triumphalism that some Muslims may harbor that the Islamic religion is being institutionalised or enhanced by actions of government. I wish to restate that the only way the Sukuk has to do with the Islamic religion – the only way it partakes from faith – is its non-interest nature and the fact that it cannot be used to fund enterprises that are related to prostitution and alcohol, marijuana or other vanities. I appreciate the fact that non-interest lending actually started with the Israelites of the Biblical times who were divinely instructed not to give loans to their countrymen on interest. This was categorically declared an unfair practice. With this in mind, non-interest banking really has not affronted the conscience of a Christian. It has not imposed a value on him that is contrary to his faith. The Sukuk bond will not smuggle in any type of jurisprudence alien to the one presently operating in the state of Osun or into any aspect of the administration. I reiterate that there is no bilateral agreement to tie us to any Islamic societies (local or foreign), be it the Islamic Development Bank or any of the others.

How does the Sukuk operate?

It is clear that you have an informed position on the faith-based funding in question.

Nevertheless, I could still point out one or two things that could align your position with mine on this matter. You indicated the

‘Government borrowing is premised on the time-tested model that if credit is sourced to finance the right things such as infrastructure and development of human capital, the environment is being fertilised for productivity’

•Dr Bolorunduro

PHOTO: ADESOJI ADENIYI

impression that the investor sets up and owns the asset the customer (in this case, the state government) requires (takes on a lease, in fact).

This idea is inaccurate if the investor is seen as the cash-lender, or even the bondholder who has direct dealing with the lessee, the state government. The funds we speak about are pooled under a Special Purpose Vehicle (SPV) that is owned by the state government.

The SPV is the owner of the assets. The SPV is owned by the state government and is subject to federal regulations under the supervision of the SEC. This SPV is not to be headed

by Islamic clerics but by professionals who are not required to be Muslims to qualify or be considered for the job.

The customer (the state government) hires the assets from the investor over an agreed period. This is not quite so. The state government or customer hires the assets from the Special Purpose Vehicle which is owned by the state. The investor acquires the title (i.e. ownership documents) to the asset and leases it to the customer. It is the SPV that holds the title to the assets.

At no time does the title to the assets pass to the customer, nor is it expected to pass.

Not so, again. The title to the assets is held by the state-owned SPV. The investor holds only the right to be repaid principal and returns upon maturity of the bond.

I concede that in general, your questions reflect what must be the fears of all non-Muslims who are stakeholders in the state of Osun. We have the responsibility to answer their questions and assuage their fears. This has also highlighted the fact that even the SEC needs to do more to enlighten the public on these matters given the sensitivity of religion in our country. We will continue to bear in mind the need not to make Christians feel ignored or entrapped in this matter. But as Christian banker, I can assure you that with the level of care taken both at national and state levels, Christians can be rest assured that their faith will not be assailed in the matter of the Sukuk and they will not be discriminated against in any way. The product of the bond will be used for the overall development of the state and we will all be better off at the end.

Agusto rates Mainstreet Bank high on strong fundamentals

A

GUSTO & Company Limited, a leading rating agency, has assigned an investment grade rating of “Bbb-” to Mainstreet Bank in its 2013 Bank Rating Report, validating the strong fundamentals of the bank.

The rating agency attributed the impressive rating to the Mainstreet Banks’ improved market position, experienced management, strong liquidity profile, adequate capitalization, and implicit support of the Asset Management Company of Nigeria (AMCON).

According to the report, the “Triple B-” rating score assigned to the bank means that Mainstreet Bank is a financial institution of satisfactory financial condition and has adequate capacity to meet its obligations as and when they fall due. The rating agency gives

the bank a “stable” outlook.

Mainstreet Bank’s impressive rating was based on its very strong liquidity ratio of 146 per cent as at 2012 year-end, which was almost five times above the 30 per cent regulatory minimum. Efficiency and profitability ratios of the bank improved tremendously, with cost to income ratio at 58 per cent lower than the industry average of 66 per cent. Net Earnings improved to N46.7 billion in December 2012 as against N12.4billion December in 2011 among other indices.

The reviewed report of the bank’s audited report for the year ended December 31, 2012 by the rating agency noted that Mainstreet Bank’s capital risk weighted assets ratio of 88.75 per cent was almost nine times higher than regulatory minimum of 10 per cent.

The rating agency noted that the weighted assets ratio provides adequate capital buffer for the bank’s current operations and it is expected to remain so in the short term.

“Given plans for loan growth by the bank, ability to sustain this low level of non-performing loans clearly indicates that Mainstreet’s Asset quality is satisfactory,” Agusto.

Commenting on the ratings, Group Managing Director, Mainstreet Bank Limited, Faith Tuedor-Matthews, said the positive ratings were as a result of solid recovery in earnings, following deliberate management decision to clean up the inherited legacy bank’s balance sheet, as well as the sustained improvement recorded by the bank’s operations across its branches.

According to her, the investment grade rating score is a strong indication of the positive impact of the bank’s business turnaround and growth repositioning.

“The recent upgrade of our banking software, equally attests to our collective drive and steadfastness in claiming a leadership position in the industry. Mainstreet Bank is now more committed to provide innovative banking services, promote trade and investment, and agriculture as well as render excellent customer service to customers,” Tuedor-Matthews said.

It would be recalled that Mainstreet Bank was recently adjudged as the bank with the highest intervention funding in the Federal Government Growth Enhancement Support Scheme Agricultural Scheme (GESS).

JOBS THE NATION

Website:- http://www.thenationonlineng.com

THE NATION MONDAY, SEPTEMBER 23, 2013

37

Wanted: Insurance actuaries Actuaries play a vital role in insurance. Their unique skills aid many high-level strategic decisions by large companies and even government. But these professionals are few in Nigeria and it shows in the quality of insurance business. Now, insurers want to up the ante by going for more actuaries to boost their business.

OMOBOLA TOLU-KUSIMO reports.

W

ITHOUT insurance, it would be difficult for people to deal with unexpected situations. These are car and plane crashes and natural disasters. Insurance companies factor the likelihood of these events into the premium they charge. In case of any eventuality, the premium enable them to cover their customers.

The first thing that an actuary does is to figure out how much risk is involved in a particular customer. If a person is deemed too risky, then the actuary rec-

ommends that he should not be insured.

Though actuaries play an important role in the industry, a few people understand what they do.

An actuary determines the statistical odds of an occurrence. In the industry, knowing the odds of an event happening are important to ascertain the right for price for a policy and to determine the proper allocation of assets.

The primary goal of an actuary is to help the company develop prices for products.

For example, if a person wants to buy a life

policy, the actuary uses information on the person to determine when the person is likely to die.

While this may not sound pleasant, it is important for the company to know when this event may occur. Using this information, the company determines how much it must charge for the policy to ensure a profitable transaction. Actuaries may also determine good investments for company funds.

Actuaries conduct the development of mortality, morbidity and related

demographic tables, market entry analysis, analysis of market opportunities and start-ups. They also identify key success factors, international accounting standards, financial analysis, asset liability manangement, enterprise risk management strategies, financial modelling, forecasting, economic capital and use of reassurance in capital management.

They are also needed for mergers and •Continued on page 38

THE NATION MONDAY, SEPTEMBER 23, 2013

38

JOBS

Wanted: Insurance actuaries •Continued from page 37

acquisitions, valuation of business and independent actuarial opinions. They assist in due diligence and play key roles in post transaction implementation and conversion activities, financial reporting, statutory valuation, embedded and appraisal value calculations.

Other services rendered by actuaries are on life assurance, product development, pricing and exposure analysis, traditional life and health insurance products, variable life and annuity products, critical illness products, disability income products and other health products, retirement-related accumulations and payout products and takaful products, among others.

Actuaries can make the difference in today’s financial world. It is an effort to explain why the use of actuarial knowledge, techniques and expertise could have helped avoid or at least mitigate the effects of the recent financial crisis.

Experts note that actuary skills are in great demand throughout the world and across a broad range of sectors.

Actuaries need a strong background in Mathematics and general business. Usually, actuaries earn a degree in Mathematics, Statistics or Actuarial Science, or a businessrelated field such as Finance, Economics or Business.

Furthermore, many students go for internship to gain experience in the profession before gradution.

Being an actuary is ranked the seventh best job in the United Kingdom (UK) by the recruitment website, Adzuna. High pay, low stress and strong levels of job security pushed it towards the top of the list of over 2,000 jobs examined.

The study puts an actuarial career six places lower than a similar US survey, published earlier this year, where it took the top spot.

Salaries for actuaries average £56,000 a year, Adzuna said. The study used a methodology that takes into account 25 criteria including earning potential, working conditions, competitiveness, unemployment rates and job security.

In the United States (US), being an actuary is ranked the best job by recruitment website CareerCast.com.

The firm’s 2013 Jobs Rated Report ranks being an actuary one place higher than the same study published last year, when soft-

• Fola Daniel

• Femi-Oyetunji

ware engineer took the top spot. The report, which is in its 25th year, ranks occupations using a methodology which takes into account working environment, income, the potential for a sector to grow, income outlook and stress.

Software engineer moved down from first to third in the league table, with biomedical engineer taking second place. The top five was completed by audiologist in fourth place and financial planner in fifth. At the other end of the table, newspaper journalist was ranked the worst job, ahead of lumberjack, enlisted military personnel and actor.

President-elect of the Institute and Faculty of Actuaries in the United Kingdom David Hare in the report said the results of this

survey provide further evidence of the great opportunities for career satisfaction and advancement in pursuing a career as an actuary.

“Actuaries’ skills are in great demand throughout the world and across a broad range of industry sectors,” he said.

In a world awash withnatural and manmade risks, the profession is booming, says Tony Lee, publisher of CareerCast.com.

According to him, “there’s a severe shortage of actuaries,” so wages are rising.

In Nigeria, these is a dearth of actuaries, thereby making the accuracy of pricing of product doubtful. Added to this is bad investments of insurance funds. The insurers also make avoidable mistakes that consume

‘The number of actuarial firms in the country is too small and it is a big challenge. Although the actuarial scientists in Nigeria are coming up with initiatives to develop that part of our business need, we are going to set up our own actuary department soon’

company profits.

The University of Lagos (UNILAG) alone, offers actuarial science as a course. A few private universities are, however, offering actuarial science.

Things are changing as insurers are now being forced to comply with the code, conduct and ethics of the business globally.

The Nation learnt that the National Insurance Commission (NAICOM) does not have an actuary department and only consults actuaries when it needs their services.

NAICOM’s spokesman Rasaaq Salami notes that there is a lack of actuaries in the market, adding that the commission has been encouraging institutions to embrace actuaries.

There are prospects in being an actuary and the services of actuaries are crucial to the existence of the industry, he added.

An actuary, who does not want his name mentioned, said the commission and chieftains have not done anything about the dearth of actuaries, wondering if NAICOM is really bothered about the future of the industry.

He said an actuary degree in Nigeria is not acceptable for exemptions in professional examinations written abroad.

“At the moment, the situation is so bad because there is no institute of actuary in the country. All professional examinations are written abroad by Nigerians who desire to be a professional actuary.

“Our profession can offer so much, yet it is understood by a few people and appreciated by even fewer. I strongly believe that actuaries could be instrumental in helping many financial institutions avoid serious mishaps and help them grow,” he said.

Managing Director, NICON Insurance Plc Emmanuel Jegede said there are only two good actuaries in the country, adding that it has become a challenge for the industry.

He said:“We do not have many of them and we have to do actuarial valuation for life and non-life aspects of our business.

“It has also created delays for insurance companies in meetting the deadline of submission of their International Financial Reporting Standard (IFRS) financial report.”

Managing Director, Niger Insurance Plc Kola Adedeji said: “It is the first time we have to do a full blown financial result on IFRS and we are also faced with the problem of lack of good actuaries in the country.

“For us, it is a bigger problem because as a composite insurance company that operates general and life businesses, we are required by the IFRS to produce two actuarial valuations for the two businesses.

Before now, we were only required to do valuation for general business.”

Managing Director, Cornerstone Insurance Plc, Mr. Ganiyu Musa, says there is a need for more actuaries, noting: “The number of actuarial firms in the country is too small and it is a big challenge. Although the actuarial scientists in Nigeria are coming up with initiatives to develop that part of our business need, we are going to set up our own actuary department soon.

CAREER MANAGEMENT

Secrets to writing winning cover/application letter

Y

OU know the truth about cover letters? You don’t?

Don’t worry, here is it: I’ve read hundreds and hundreds of cover letters. Or, rather, I’ve looked at hundreds and hundreds of cover letters. How many have I actually read? Or more accurately, how many have I read to the end?

Less than 10 out of every hundred!

Most people do not take the time to make the letter worth reading.

In addition to ones with serious type-o problems and red flag formatting, there are some simple things that stop me in my tracks.

These include sending me entertainment cover letters addressed to someone else or referencing a job somewhere else and sending me a generic cover letter that could have been written by pretty much anyone for any job on the planet. (The job I have available seems like a great opportunity and you are a hard worker? Wow.) Okay, but beyond these, there

By Olu Oyeniran

are four things you can do to make sure the recruiter/hiring manager/ executive gets through your letter and eagerly moves on to your resume:

Mention someone I know If you can find a personal connection to the person doing the hiring, that is a huge plus. It always wakes me up to see, “Your friend so-and-so has great things to say about the company and thinks I might fit in well.” Have you ever heard that everybody is within six persons from you.

Maybe you don’t know who is doing to hiring, but you met the head of the company once – or saw him speak at an event. Or, you are friends with a former employee.

(Just make sure she left on good terms and has good things to say about you). Drop those names in the first line.

Tell me why you want to work for the company Every employer, rightly or wrongly, now expect you to demonstrate some knowledge about their company.” It tells them you have gain some knowledge of the company, even if it’s just knowledge you gained after you read about the opening online. So if you don’t already have something to say, Google the company name and get the latest news.

After you’ve dropped the names we talked about in Item #1, say something current about the company, “I understand you just promoted four executives, one of whom started at the company as an intern. I think that says a lot about an organisation.”

Be interesting & personal (in a relevant way) If the job requires organisational

skills, tell me when you were eight, you cleaned out your mom’s garage in a single day while they were at work. If it’s a advertising department job, tell me that you can remember the trailer and poster of probably every movie you’ve ever seen, even if the movie was terrible.

If it’s an agent trainee job, tell me that you’ve known you what you wanted to do since kindergarten, when you traded Pokemon cards with classmates until you had the best collection of rare Pokemon cards in the whole school. You get the idea. Engage me, be memorable, and keep my brain awake.

Sell yourself In addition to something personal and memorable, you also want to sell yourself in a targeted way for the job I am filling. Choose two or three qualifications or qualities I am looking for and very, very briefly identify matching experi-

ence or qualities you have.

If I need someone with strong written communications skills and familiarity with reality television, include, “In my job at UTA, I became the go-to person for two things among my peers: editing drafts of correspondence they were working on for their bosses and giving them background on every reality TV show from ‘Real World, Season One’ through ‘Amazing Race: Unfinished Business.”

If you follow those four tips, you will not only get me to the end of the letter, but you’ll also prove yourself to be a smart, savvy, hardworking individual who I should definitely consider for the job.

Congratulations!

•Oyeniran is Lead Consultant, EkiniConsult & Associates. He can be reached on Jobsearchhow.com.ng Tel 08083843230 (SMS Only).

THE NATION MONDAY, SEPTEMBER 23, 2013

39

EMPOWERMENT CLINIC with

Achieving corporate growth through innovative management What actually gave my friend the competitive edge was innovative management.

Analysis

GOKE ILESANMI

A

FRIEND of mine told me that some years back, a competitor invited him to a birthday party. Midway into the celebration, he (the competitor) just called him to one side and started begging him to tell him the magical or fetishistic secret of his business success as his (my friend’s) business had been the most successful among the competitors’. My friend said he told the man he never had any fetish power but only combined prayer with effective business management. But the competitor kept begging him, promising that he would never reveal the secret to anyone if assisted.

Expectedly, my friend felt embarrassed by the man’s disbelief. I told him not to worry himself over this.

Why? It is human nature. If you are a very brilliant student, classmates may say you are using some magical power to achieve exceptional brilliance. If you are very financially rich, people around may say you have done money ritual.

Innovative management is a management concept being embraced in the corporate world today. It is all about deploying creativity to stay ahead of competition.

In short, growth, which signifies productivity and can lead to profitability, can only be effectively achieved and driven through innovation. “Every organisation – not just business – needs one core competence: innovation,” educates Peter Drucker, the business management expert. Innovation borders on conversion of new knowledge into new products and services. It is about increasing productivity, creating value, thereby growing your business. Success in business does not come from feeling comfortable.

With many markets getting more competitive due to new competitors from global markets, those who innovate best will win now and always. Vadim Kotelnikov, founder, Ten3 Business e-Coach – Inspiration and Innovation Unlimited! corroborates this by saying to remain competitive, today’s companies need to do more than simply deliver products or services that are better or cheaper than those of their rivals. They must also add features, improve performance, and reduce prices more quickly. They must be faster to launch new lines. To grow, they may need to create entirely new markets and develop venture strategies.

Reinforcement

Innovative management is the

backbone of organisational success. Conventional management skills are no longer effective in today’s fast-developing world.

There is a demand for managerial creativity, and this has naturally brought about innovative management solutions. Vijay K Shett, a management expert says innovative management involves intelligent management, interactive scheduling, effective communication channels, etc. Product line management is part of the innovative management which allows for effective management of software products that are independent but are related to each other.

It allows for introduction of new ideas, processes or products, adds Shett.

It is a reality that only companies that can consistently bring imaginative, value-added new products, services and value propositions to the market will survive and grow in a rapidlychanging economy. Robert Tucker, author of “Driving Growth through Innovation” says most companies today are frustrated by their inability to turn ideas into profitable realities.

Their “innovation process” is almost an oxymoron, a contradiction.

Related development In a related development, one of the commonest complaints senior executives have regarding disruptive innovation is its seemingly snail-like speed. Scott Anthony, author of “The Little Black Book of Innovation” wonders why it takes us forever to pursue ideas that promise to create new markets when the world seems to be innovating at a fast speed.

Anthony adds that this frustration is compounded by the fact that the usual levers senior executives use to get things to go faster, e.g., creating tight deadlines, flooding the project with resources, checking in more frequently, etc., do not seem to work, and in many cases cause teams working on disruptive ideas to actually go slower.

The reason is that even though tight deadlines, frequent check-ins, and additional resources can help to accelerate execution of a strategic plan, achieving success in disruption first requires development of a strategic plan that can be executed. It is therefore not surprising that Steve Blank, an innovation-thought leader says a start-up is a temporary organisation searching for a scalable business model. Speeding up the search for a strategy is very different from executing the strategy. To achieve success in your organisation, you need to design and implement an enterprise-wide innovation strategy.

Addition Beyond designing and implementing an enterprise-wide innovation strategy in your organisation, you also need to gain the competitive edge by discovering and fulfilling unmet customer needs; creating a system to ensure good ideas do not get lost and discovering product, process and strategy ideas that have the potential to become massive breakthroughs. According to Tucker, you will also learn how sell ideas internally and externally; overcome obstacles to achieve success in the marketplace; and involve everyone in the idea-to-implementation process.

Innovative management leads to growth. Growth in revenue and net earnings brings about many wonderful and positive things to companies and their people. Apart from jealousy, growth attracts admiration and respect from peers, competitors, stakeholders, etc., in your industry. Growth also allows you to empower your host community in the form of executing social projects. A majority of firms today are growing, but the problem is that they are not growing fast enough to keep up with today’s shareholder values and tomorrow’s shareholder expectations.

Final empowerment Creative and influential leadership, they say, is the foundation of all great companies. Today’s corporate leaders face a challenge because they must innovate so that the reservoir of new growth opportunities will not become empty tomorrow. Corporate leaders must create a culture of performance based on innovative ideas.

Christopher Meyer, author of “Relentless Growth” says the question for leaders today is not if culture is important for success but how culture can drive successful innovation.

In short, corporate leaders must embrace innovative management style today so that their organisations can stay ahead of competition for enduring growth and empowerment.

PS: For those making inquiries about our Public Speaking, Business Presentation and Professional Writing Skills programme, please visit the website indicated on this page for details. Till we meet on Wednesday.

WORKPLACE MATTERS Final information on good CV and job opportunities

L

AST week, we discussed chronological and functional types of CV. This week, we will discuss the third and final type called Combined chronological functional CV.

Combined chronological functional CV A combined CV includes elements of both the chronological and functional formats. It may be a shorter chronology of job descriptions preceded by a short “Skills and Accomplishments” section (or with a longer Summary including a skills list or a list of “qualifications”); or, it may be a standard functional CV with the accomplishments under headings of different jobs held. There are obvious advantages to this combined approach. It maximises the advantages of both kinds of CVs, avoiding potential disadvantages of either type. One disadvantage is that this tends to be a longer CV.

Guidelines for a better CV presentation Your CV should be visually enticing. It should be simple and clean. It should be very easy-to-read, un-crowded and balanced. Include as much white space between every two sections of writing as possible.

The sections of writing should not be longer than six lines.

Make maximum use of italics, capital letters, bullets, boldface, and underlining, with uniformity and consistency. Employ to-

By Goke Ilesanmi

tal parallelism or uniformity in design decisions. For instance, if a full-stop is at the end of one job’s date, a period should be at the end of all jobs’ dates; if a degree is in boldface, all degrees should be in boldface.

Remember to think of the CV as an advertisement. Make sure it is error-free. That is, no typographical or spelling errors. No grammatical or punctuation errors. No factual errors. All the basic, expected information is included. A CV must have the following key information: your name, address, and phone number (immediately identifiable and at the very top of the first page), a listing of all jobs held since beginning your career, in reverse chronological order, educational degrees including the highest degree received, in reverse chronological order. Additionally, targeted information will of course accompany this. Much of the information people commonly put on a CV can be omitted but these pieces of information are mandatory.

Target A CV should be targeted towards your goal, to the ideal next step in your career. Highlight your strengths and de-emphasise your weaknesses. Focus on whatever is most impressive. Make careful and strategic choices as to how to organise, order and convey your skills and background. Make liberal use of words. For every skill,

ability or accomplishment described, use the most active and accurate verb you can think of.

Keep sentences as short and direct as possible. Eliminate any extraneous information and any repetition. Do not use four examples when one or two are okay. Say what you want to say in the most direct words possible, instead of trying to impress with bigger words or more complex sentences. You also need to vary long sentences, if necessary, with short and punchy sentences. It is better to employ phrases rather than full sentences when phrases are possible, and start sentences with verbs, eliminating pronouns, e.g. I, You, He, She, They, etc.

Addition Vary words, do not repeat a verb or adjective in the same paragraph. Use commas liberally, to clarify meaning and make reading easier. Remain consistent in writing decisions, for example, the use of abbreviations and capitalisation. As far as CV length is concerned, everyone freely offers advice on what it should be. Some say a CV should always be one page, while others say a CV can be as many pages as you want long if you can sustain the prospective employer’s reading interest for so long, and at the same time create excitement that makes him or her pick up his or her phone and call you for an interview. However, it is better not to follow length rules blindly.

Instead, do what works. Sometimes, it is appropriate to have

a three-page CV. But, unless your life has been filled with a wide variety of extraordinary achievements, make your CV short.

Length of consulting CV In a consulting CV, you are expected to dig everything as deep as you possibly can. If you are selling your own consulting service, make it sizzle, just like any other CV. Additionally, include a little more detail, such as a list of well-known clients, powerful quotes from former clients about how fantastic you are, etc. If you are seeking a job with a consulting firm that will be packaging you along with others as part of a proposal, include everything that makes up your intellectual strength and profile. You can include a full list of publications, skills, assignments, other experience, and every bit of educational achievements you can, that have something to do with your work. The philosophy here is: the more the better. CVs can be written using either the first- or the third-person verb tense.

Use whichever you choose consistently. Verb tenses are varied and based on accurate reporting. If the accomplishment is completed, it should be past tense. If the task is still underway, it should be present tense. If the skill is something which has been used and will continue to be used, use present tense. A way of “smoothing out” transitions is to use the present perfect tense. Be sure

the telephone number on the CV will, without exception, be answered by a person or an answering machine. I am sure you do not want to miss an interview just because of lack of response when you are called on phone. Include e-mail and fax numbers, if you have them.

Choosing references Before you choose a person as one of your references, you need to seek his or her consent.

It is very risky to take this for granted. Equally ask whoever volunteers to be your reference about the address and phone number he or she wants you to use for him or her. Thank a reference for the time spared with you in your meeting and for agreeing to act as your reference.

Make sure you keep in touch with him or her constantly even after securing the job.

Concluded. Till we meet on Wednesday.

•GOKE ILESANMI, Managing Consultant/CEO of Gokmar Communication Consulting, is an International Platinum Columnist, Certified Public Speaker/MC, Communication Specialist, Motivational Speaker and Career Management Coach. He is also a Book Reviewer, Biographer and Editorial Consultant.

Tel: 08055068773; 08187499425 E m a i l : gokeiles2010@gmail.com W e b s i t e : www.gokeilesanmi.com

THE NATION MONDAY, SEPTEMBER 23, 2013

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Taxation Change in accounting date: Tax implication

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IFFERENT and sometimes challenging business decisions can force companies to change their accounting dates.

Sometimes regulatory pronouncements such as that issued to banks post consolidation to have a uniform year end was anevent which saw all banks in one fell swoop change their different accounting dates to December. While some companies have adopted calendar years, some others use fiscal years, which method is adopted is subject to tax implications. Whereas in the US the Internal Revenue Service (IRS) must give permission for companies to change their accounting dates especially to tackle tax avoidance, and may take as much as 10 years to effect another change in some cases,it is not yet so in Nigeria, an area which should be addressed.

However, a lot of companies still do not know that there are tax implications to change of dates in their accounting period beyond the approval they get from their shareholders to do so. The FIRS being aware of different methods applied by tax consultants and tax officers in the treatment of changes in accounting dates, with each method yielding different results in under-assessment or incorrect assessments levied on taxpayersissued a circular in February 2006 as a guide to officers who have responsibility for filing and assessment duties, and those who may be required, as a matter of duty to carry out preliminary reviews on tax returns submitted by companies as well as officers vested with audit responsibilities, who from time to time will come across cases of change in accounting dates in the course of their audit assignment.

Changes in Accounting Dates There are a number of reasons why a business may wish to change its accounting date and these reasons may include: i) The need to synchronise the accounting date of a subsidiary with that of the holding company. ii) The convenience of stock taking at a particular period of the year. iii) A business may take over the operation of another and as a result wish to change the accounting date of the company taken over to that of its own.

Where a change in accounting date takes place, be it a sole trader, partnership or a limited liability company, the provisions of section 29(4) of the CAP 21 LFN of 2004 will apply. The Act provides that the Tax Authorities have the power to decide the basis of computing the tax liability for the year in which the change occurs and the two following years of assessment.

As should be expected, the tax official will base his decision on the best advantage to the tax authority. It is important to note that the three relevant years to be considered are: i) The assessment year in which the accounting date becomes different from the date of the earlier years. This is known as the year when the change occurred. ii) The next two years of assessment following that in which the change occurred.

In practice, calculations are made on both the old and new dates. The greater of these two aggregates will be the likely choice of the revenue authority.

iii) Computing assessable profit for the three relevant years based on the old accounting date (on preceding year basis). iv) Computing assessable profit for the three relevant years based on the new accounting date (on preceding year basis). v) Adding up the assessable profits for the three years in (iii) and (iv) above separately. vi) Selecting the higher of the two profits added up in (v) above.

Illustrations Example 1 Julius Blake Nigeria Limited has been in business for many years. It has for a long time prepared its annual accounts up to April 30. In 1996, it decided to change its accounting date to 31st October. Available figures showed its adjusted profits as follows: N (No. of Months) • Acting Executive Chairman, FIRS, Alhaji Kabir Mohammed Mashi

‘Where a change in accounting date takes place, be it a sole trader, partnership or a limited liability company, the provisions of section 29(4) of the CAP 21 LFN of 2004 will apply. The Act provides that the Tax Authorities have the power to decide the basis of computing the tax liability for the year in which the change occurs and the two following years of assessment’

By Frank Obaro

Years involved in Tax Computations Whenever a request for a change of accounting date has been approved, the company making the change shall be assessed to tax through a special process of determining the basis of assessment.

This process requires computations for three relevant years. Where the year of cessation is involved (ultimate year) in these three relevant years, the request for a change shall not be approved. However, where the year immediately before the year of cessation (penultimate year) is involved in these three relevant years, the request may be approved by the FIRS, depending on other evidences before it.

Assessment Procedure on Change of Accounting Date For an on-going business, current assessment is based on preceding year basis. But whenever there is a change of accounting date, a normal accounting period may not have ended in the year of change. This is so because when there is a change of accounting date, it is either that an account is prepared for more than twelve months to the new accounting date or even less than twelve months to the new accounting year end. The FIRS will often adopt the following procedures to determine the assessments for the three relevant years: i) Identifying the first year in which the business has failed to make up the accounts to its usual accounting date. ii) Identifying the two years immediately following the year of failure.

Year ended Period ended Year ended Year ended

30/4/1995 450,000 31/10/1996 830,000 31/10/1997 590,000 31/10/1998 600,000

12 18 12 12

You are required to compute the correct assessments for all the relevant years in the light of the change in accounting date.

Solution Julius Blake Nigeria Limited Computation of Assessment

Note: The last account submitted before the change was April 30, 1995. Therefore, the year of change is 1996. The three relevant years are therefore 1996, 1997 and 1998. a) Original Assessments (Based on old Accounting date of April 30) Year of Assessment Basis Period Assessment 1996 P:Y.B(1/5/94-30/4/95) N450,000 1997 1/5/95 – 30/4/9512/ 18 x 830,000 N553,333 1998 1/5/96 – 30/4/97 (6/18 x 830,000) + (6/12 x 590,000) N571,667 b) Assessment Based on October 31 Year of Assessment.Basis Period Assessment 1996 1/11/94 – 31/10/95 (1/11/94-30/4/95) + (1/5/95-31/10/95) (6/12 x 450,000) + 6/ 18 x 830,000) N501,667 1997 P.Y.B. to 31/10/961/11/95 – 31/10/96 12/18 x 830,000 N553,333 1998 P.Y.B. to 31/10/97 N590,000 c) Summary of Assessments Year Old date of new date of April 30 October 31 N N 1996 450,000 501,667 1997 553,333 553,333 1998 571,667 590,000 1,575,000 1,645,000 Conclusion The revenue will choose to raise assessments on the basis of the new accounting date as it results in greater assessment.

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THE NATION MONDAY SEPTEMBER 23, 2013

POLITICS

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MONDAY, SEPTEMBER 23, 2013

THE NATION

E-mail:- politics@thenationonlineng.net

Last week, Senate President David Mark threw his weight behind the call for a national conference to address the many ills plaguing the country. AUGUSTINE AVWODE and MUSA ODOSHIMOKHE examine its feasibility before 2015.

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Is national conference feasible before 2015?

OR The Patriots, a group of eminent Nigerians, a national conference to address Nigeria’s socio-economic and political problems, should hold before 2015. This was their position when they visited President Goodluck Jonathan in August. The group was led by its chairman, Prof. Ben Nwabueze, (SAN).

Briefing reporters after the meeting, Nwabueze said, “We talked about the transformation of this country. Its entire economy, the entire polity and the entire society would need to be transformed. We believe that the way to achieve that objective is through a national conference, a national conference of ethnic nationalities in this country.

“We need to bring these nationalities around a conference table, to discuss how we are going to live together as one country in peace, in stability, in security with the aim of achieving national unity. As of today, we are not a nation yet; we are a state. So, that is the gist of what we put forward to Mr. President and that this conference should be conveyed as a matter of priority as soon as possible, in any event, before 2015 general elections.”

The President’s response was reassuring. He said he was concerned about finding a workable platform for a national dialogue that will reinforce the ties that bind the country’s many ethnic nationalities together.

He pointed out that the National Assembly has a major role to play in any process that will lead to such a dialogue. “The limitation we have is that the constitution appears to have given that responsibility to the National Assembly. I have also been discussing the matter with the leadership of the National Assembly. We want a situation where everyone will key into the process and agree on the way forward”, President Jonathan said.

In a way, Jonathan tactically passed the ball into the court of the National Assembly. Therefore, when Senate President, David Mark endorsed the call for a national conference in the country, it was a piece of cheering news to many.

According to Mark, “We live in very precarious times, and in a world increasingly made fluid and toxic by strange ideologies and violent tendencies, all of which presently conspire to question the very idea of the nation state. But that is not to say that the nation should, like the proverbial ostrich, continue to bury its head in the sand and refuse to confront the perceived or alleged structural distortions which have bred discontentment and alienation in some quarters.

“This sense of discontentment and alienation has fueled extremism, apathy and even predictions of catastrophe for our dear nation. A conference of Nigeria’s ethnic nationalities, called to foster frank and open discussions of the national question, can certainly find accommodation in the extant provisions of the 1999 Constitution which guarantee freedom of expression, and of association”, Mark declared.

2015 target not feasible Howver, the question is whether such a conference is feasible or not before the 2015 general election as suggested by the Patriots. While many people have applauded the position taken by Mark, they have, however, said the 2015 target is not feasible and that it might even cause more dislocation in the polity. In fact, to politicians

• Dr Jonathan

•Ahamba

in the opposition camp, the endorsement of a national conference by Mark at this point in time is simply a diversionary tactic.

Speaking to The Nation last Friday, Executive Director, Human Rights Monitor, Chief Festus Okoye said the prevailing insecurity in the country, crises in some of the political parties and the fact that elections are slated for 2015, all combined to make it practically impossible.

“A national conference before 2015 is not possible. The present insecurity challenges, which the country is facing in the Northeast and Northwest zones of the country is an obstacle.

“Again, apart from the issues of kidnapping and armed robbery in the Southeast and South-south regions, there are crises in some parties. Most importantly, elections are approaching, which are slated for 2015. We don’t want a situation where politicians will hijack the process to further their own interests.

“In the final analysis, both the objective and subjective conditions for a national conference are not available now. For me, I would rather call for a systematic completion of the review of the constitution, before anything is done in respect of a national conference ”, he said.

Former Governor of Edo State Chief John Oyegun agreed with Okoye. He called for the ‘salvaging’ of the country first, before embarking on a national conference.

“It is our idea; we have been calling for it. But just now, or before 2015

• Mark

•Momoh

is not feasible. What I want us to do first, is salvage the country from the hand of those who have kept us down in the last 14 years. When we have rescued Nigeria, then, we can now tell Nigerians that we all need to sit down and talk. The atmosphere now is too tense for any meaningful dialogue. We are on the verge of salvaging Nigeria, we have to salvage the country first, we don’t want this diversionary thing, and we will not be taken in by this approach. When we have the power to call a meaningful national conference, we will do it. But first, it is the soul of the country that must be salvaged”.

Legal luminary and chieftain of the All Progressives Congress (APC), Chief Mike Ahamba, described the 2015 target, as advocated by the Patriot as a “grave mistake”. He pointed out that there is no law in place which empowers the National Assembly to facilitate such a conference to be attended by people other than members of the National Assembly”.

He referred the Senate and House of Representatives to what happened in 1977, when a law was enacted, and which led to the setting up of a Constituent Assembly. It was that Constituent Assembly, he pointed out, that produced the 1979 Constitution.

“If we target a particular date, say, 2015, we will be making a grave mistake. There must be an enabling law, first. The members are going to come from outside the National Assembly, and if that is the case; then, there must be a law like that of 1977. It formed

•Nwabueze

‘A national conference before 2015 is not possible.

The present insecurity challenges, which the country is facing in the Northeast and Northwest zones of the country is an obstacle. Besides the issues of kidnapping and armed robbery in the Southeast and South-south regions, there are in some parties. Most importantly, elections are approaching, which are slated for 2015’ the basis of the Constituent Assembly which produced the 1979 Constitution.

“All these things are contained in the memo that I submitted to the National Assembly in respect of the constitution review some time ago. It is when that has been done, that we can now fix a time and approach it slowly. Not set a target that it must be before 2015”, Ahamba said.

Apart from the issue of a targeted date, which is said to be inauspicious; the whole idea of a national conference does not sound quite logical to others. Former Minister of Police Affairs and now chieftain of the APC, Dr Ibrahim Lame is simply not enthusiastic about the idea of a national conference. He told The Nation that, those proposing a national conference, are yet to define exactly what they mean and what they want. He said the nation’s problems won’t be solved through a conference. “My qualm is that nobody has defined exactly what they mean by national conference; nobody has told us anything about what they mean, what they want to achieve and who will go. So, I don’t understand them, and I am sure many people also don’t understand what they are talking about. Look, I acknowledge the fact that Nigeria has problems, yes, but we don’t have to necessarily go through a national conference to solve these problems. I don’t think a conference in itself, is a panacea to Nigeria’s problems”.

Dr. Lame offered a different route

out of the country’s problems. He said what the country needs is ‘doing the right thing’ by following the rule of law. he added thatNigeria must establish proper leadership recruitment system.

“What I think Nigeria can do is establish the rule of law and follow it religiously; make sure that leaders are accountable to the people and establish a process that will ensure a proper recruitment of future leaders. What we need is capacity building and capacity utilization. Once that is done, all this talk of a conference will be unnecessary. What I see is a ploy by the proponent s of the national conference to create job for their hangerson, their friends, cronies and siphon the resources of this country for their personal use”, he said.

However, others expressed optimism about the workability of the 2015 target date. One of such people is former Minister of Information Prince Tony Momoh. He told The Nation that it is possible to have the conference.

“The major issue is political. When you address political problem, the economic problem is automatically solved. If you have a particular arrangement, where one man dictates what happens, then there will be problems. There was a time we had three regions, Nigeria worked. Then we have four, 12, 19, 21, 30 and now, we have 36.

“People are still calling for the creation of more states. The more you split up Nigeria, the more you spend money on running the country. The less you have, the less it becomes burdensome. Everywhere in the world, development is part of democracy. In Nigeria, we put democracy ahead of development; that will not work.

There is the need to meet to discuss what is needed to grow Nigeria.

Former President Olusegun Obasanjo tried it in 2005, but instead of moving in that direction, they were working at extending his tenure. So, they could not achieve that, they did everything possible to nail the process.

“We must all recognize the need to spend less money running Nigeria than we are doing now. We spend more than 80 per cent of our money running Nigeria, which is recurrent expenditure. We should not spend up to 20 per cent running Nigeria. The other 80 per cent should be for development. Government is for the security and welfare of the people.

“We can do this between now and the 2015 election. And what we should go for is the parliamentary system, not presidential. We should equally go for part time parliamentary legislature, and not full time. If we have the political will, it can be done before 2015”.

Similarly, Senator Femi Lanlehin agreed with Momoh. He said: “the conference can hold before 2015 because it is all about how to run the country. In doing this, all shades of opinion must be considered. All nationalities must be involved, the positions they take would have to be considered and then passed through the National Assembly.

“We can have a national conference, if the people are serious about it. For instance, the conference can even look at the modus of transition. I think if we are serious about having a conference, from now to 2015, it can be done”, Lanlehin said.

However, whether the age long call for a conference to discuss the national question will take place now or later, only time can tell.

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MOTORING

Kewalram to increase stakes in auto centres

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EWALRAM Chanrai Group, the authorised distributor of Mitsubish, FUSO and Foton brands of automobiles, has promised to increase its stakes in auto centres.

The firm’s decision was hinged on its belief that Nigeria holds the ace for future global automobiles development.

The group has set aside millions of naira to refurbish the after sales service segment at all its workshops across major cities in the country.

Chanrai Nigeria Limited Executive Director Raju Sawlani, while briefing motoring reporters, promised customers the company’s desire to meet their demands.

Sawlani said the company’s spare parts divisions is worth N500 million.

The service centres, he said, are to ensure the availability of genuine spare parts of its brands.

He stated that the company has been importing automobiles into

Stories by Tajudeen Adebanjo

Nigeria since 1989, adding that turning things around now was in line with the group’s profile to strengthen the service centres.

“We have an enduring and rewarding relationship with the world leader in automobile. We offer after-sales services with established sophisticated service workshops in major cities which are equipped with the latest diagnostic and repair system including a wide access premises and reception for customer’s comfort. In addition, genuine spare parts are readily available,” he said.

Sawlani said the company is planning to diversify its auto business beyond Nigeria, with Kenya chosen as the liason branch for its auto plant in Africa.

Going beyond Nigeria, he said, was strategic for the group as it plans to ensure that it opens major branches in the continent.

He explained that the company

•One of the centres

would consolidate by enhancing its brands in terms of sales, quality spare parts and rigorous marketing.

The history of the Kewalram Chanrai Group dates back to 1860.

It was established in India as a trading house dealing in textiles.

The firm has over the years become a multi-national conglom-

FERMA acquires 12 labs, trains managers

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•A cross section of participants at the Auto Tyre Safety Day held at Oshodi, Lagos.

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Ford introduces new product

ORD of Europe is set to launch a new exclusive product and ownership experience in Europe called Vignale.

Ford’s initial vision for Vignale, the Ford Mondeo Vignale Concept, features unique design elements, high quality craftsmanship, exclusive specification and advanced technologies.

According to Ford President of Europe, Middle East and Africa, Stephen Odell, the Vignale represents the highest expression of the Ford brand in Europe from both a product and an ownership experience perspective.

“The Ford Mondeo Vignale Concept showcases the features that customers tell us they want in terms of styling and quality, ad-

J

UST this week, I learnt that the Nigeria Police will start the implementation of the new digital Biometric Central Motor Registration (BCMR) from September 16, 2013. The Control of Crime and Terrorism are among the objectives of the new BCMR. As good as the objectives are, I want to quickly take Nigerians, particularly the Nigeria Police Force down the memory lane.

Firstly, when the National Identity Card was announced, it was considered to be a laudable venture but as at today, many people could not get their National Identity Card till now and there is no commendable Central and/or Regional database as promised. The best use for the National Identity Card is for identification in Banks after wasting billions of naira on the project.

Secondly, the on-going new Plate

vanced technology and exclusivity,” he said.

The Vignale also features quilted trim, chrome lower mouldings, leather armrests, and exclusive seating with “Vignale” detailing and high-quality, soft-touch leather that extends to the steering wheel, instrument panel, centre console, door top-rolls and centre arm-rest. Embossed scuff plates and luxury floor-mats enhance an ambience that combines traditional coach-building with contemporary design and material trends.

Ford SYNC with MyFord Touch in-car connectivity system will enable integration of smartphones and deliver wi-fi capability, while new-generation adaptive LED

headlamps enhance visibility and vision.

The Vignale is also inspired by exclusive services from beyond the world of automotive. These include VIP air-travel services that offer chauffeuring, dedicated check-in and security and clubhouse access; and exclusive banking and credit card services with dedicated relationship managers, reward points, concierge services and partner brands such as hotel chains, restaurants and entertainment venues.

“Ford Vignale premium services will meet the needs of the customer for whom time is the ultimate luxury,” said Gaetano Thorel, Marketing vice president, Ford of Europe

erate, operating in over 35 countries with more than 10,000 trained staff.

HE Federal Roads Maintenance Agency (FERMA) has acquired 12 quality assurance laboratories to ensure materials used in its roads maintenance works comply with set standards.

The facilities which comprise eight fixed and four mobile laboratories are distributed in the agency’s 12 Operational zones nationwide.

FERMA’s Managing Director/ Chief Executive Officer, Mr Gabriel Amuchi said this in Abuja while declaring open a four-day training for officials - the laboratories in the North Central (I) Operational Zone.

Represented Mr Hassan Ibrahim, Executive Director Planning and Engineering Services, Amuchi said that over time, the agency relied on contractors’ laboratories and

those of other construction companies to conduct necessary tests, adding that such an arrangement did not augur well for credible quality assurance, since the agency had no control over the facilities and testing processes.

Noting that the planning and procurement of the laboratories and sites was tasking and involved substantial commitment of resources, Amuchi urged the trainees to seize the opportunity provided in the training to gain new technical skills that would go a long way in enhancing their career as engineers and technicians.

With this training, he said, they would be equipped to supervise any engineering project anywhere in the world.

Hyundai donates car to ambassador

H

YUNDAI Motors Nigeria has donated a brand new 2013 Hyundai Accent car to winner of this year’s 2013 Miss West Africa Nigeria – Queen Globe beauty contest that took place at the Grand Hotel, Asaba Delta State.

Hyundai Motors Nigeria Limited Head, Sales and Marketing Mr Jatin Nadkarni, who presented the car keys to Miss Olumiluwa Yemi, winner, Miss Globe contest said: “Hyundai was inspired by the standard of the contest which drew contestants from different parts of the country.”

He described Hyundai as a uniquely designed brand for the

young-at-heart and with exclusive adroitness, poise, elegance and boldness archetypal with world class beauty pageants.

“We, are indeed, excited to be part of this contest – not because we are keen on selling our cars but because of the passion and commitment of our youths towards improving the society they live in,” he said.

Chief Executive Officer Real Point West African Limited Prince Vincent Odinigwe the Hyundai authorised dealership in Warri, Delta State said: “We are proud to be associated with the youths particularly because of their potential as leaders of tomorrow.

SAFE DRIVING

The Police Central Registration Number and Driver Licence scheme is another case study. Before the commencement of the new Driver Licence Scheme, Nigerians were promised by the Federal Road Safety Corps that before the expiration of the three months of the Temporary Driver Licence being issued, the real Driver Licence will be ready.

Alas! As at today, there are some people that have been holding the temporary Driver Licence for about one year now, spending thousands of naira to follow up whether the real Driver licence is ready to no avail.

The main problem with most government agencies is that we are always in a rush to start projects with the income generation taking priority attention without taking into consideration the other factors that can

militate against the successful implementation of the project.

It is written in the Holy Book that if a person wants to build a house, he should first of all calculate the cost so that he will not have to suffer shame of starting without completing the building. The reverse is usually the case in Nigeria. What justification does the Federal road Safety Commission and the other parties to the Issuance of the new Driver Licence have to commence the arrest of the people that have not yet commenced the processing of the new Driver Licence or Plate Number when they were the cause of the delay in the issuance. Do they think that everyone in Nigeria has the time to queue at the licensing and capturing centres for hours to process a document that

should take less than 30 minutes under an organised system? It is part of the human relations principles to learn how to accept our faults and also take responsibilities. How about the high level of corruption and compromise in the system?

Now that the Police Force is planning to start the implementation of the new digital BCMR, or set ultimatum, they should please answer the following questions and take all the necessary steps to address the issues so that they will not go the same way of generating income without providing the required services to the satisfaction of Nigerians and nonNigerians alike.

•Knowing the number of vehicles in Nigeria which runs to millions, particularly in Lagos and Abuja, how

Jide Owatunmise Registrar / Chief Executive, Professional Driving and Safety Academy

many registration and capturing centres have they established and equipped with adequate human and material resources to avoid wasting peoples' time and resources?

•To be continued next week

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USEFUL PHONE NUMBERS ON ANY EMERGENCY Council endorsed the useful phone numbers submitted by the security agents in case of any emergency on the metropolitan Roads. Accordingly, the public may easily contact KAROTA for: Breakdown of Vehicle(s), Traffic Congestion, Accidents, and Illegal/Wrong Parking on – 08091626747. Similarly, the State Police Command could be contacted on – 08032419754, 08123821575. In addition, the State Fire Service can also be contacted on – 07051246833, 08191778888.

116TH KANO STATE EXECUTIVE COUNCIL MEETING

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ince inception, Governor Rabiu Musa Kwankwaso has not only established himself as one of the most vocal, progressive and dynamic Governor of Kano State but is now a person of great political influence in the country. His second coming as an elected Governor of one of the most populous and vibrant States has exposed a personality that is committed to serving not only his constituency but also the nation in general. His stands on development and national policies show a remarkable degree of consistency thereby portraying a man of great energy and sincerity of purpose.

He is never afraid of controversy when he is sure that his stand is for the betterment of Nigeria. While some leaders shy away from speaking up, Governor Kwankwaso is never cowed by the size of the challenges for a cause that is just. He is a leading propagator for a more just democratic system, revenue allocation formula and the transformation of the nation's economy. His statements on or off stage offer radical propositions thereby laying bare the problems and solutions for a better nation. His views are clear, recognizable, purposeful and are now influencing the political landscape of the nation.

In fact, since inception his administration has been translating a program of action that has made Kano a shining example for other States as no sector is left out without being transformed for the better, from Education, Health, Youths empowerment, Agriculture or Revenue Generation. With this, the State is changing, as the citizens now believe in their Government because of its sincerity and prudence in the management of resources. Thus, a new political and economic thinking appears based on the recognition of realities on the ground. The people are becoming more optimistic and supportive to the Government because of what it is able to deliver. His approach to governance is realistic because he understands the nature, needs and aspirations of his people. It is becoming clear that this administration is firmly set on course to make history through developmental policies.

The following decisions and approvals given for the execution of development projects and implementation of policies was presided over by Governor Eng. Rabiu Musa Kwankwaso today Wednesday 18th September, 2013 (13th Zhul - Qiddah, 1434 AH). This is the 116th sitting of the Executive Council meeting. At the meeting, eight (8) MDAs submitted forty-four (44) memoranda for deliberation by Council of which twenty-nine (29) were approved for execution with an expenditure of One Billion, Three Hundred and Twenty Seven Million, One Hundred and Fifty Seven Thousand, One Hundred and Seventy Nine Naira, Ninety Seven Kobo (N1,327,157,179.97) covering eighteen (18) projects. Thus: 1. MINISTRY OF WORKS, HOUSING AND TRANSPORT Thirteen (13) memoranda were submitted for deliberation by the Ministry of Works, Housing and Transport. Ten (10) of them were approved for execution as follows: a. Request for Funds to Enable the Repair of Washed - Out/Eroded Portion/Section along Panda Albasu Road, Albasu LGCA:The Honorable Commissioner, Ministry of Works, Housing and Transport tacitly alerted Council of washed-out/eroded portion/section along Panda - Albasu Road, which cuts off the road disconnecting the Rural Communities in the area from the main road.

Reportedly, a team of Engineers from the Ministry of Works, Housing and Transport were directed to visit the site and assess the problem. The assignment was promptly and expertly carried out leading to the preparation of a vetted/provisional BEME to the tune of N69,044,493.46, which was requested for release by Council to tackle the problem.

The concern of the present administration to rehabilitate and construct road networks within the State to ease commuting for socio-economic purpose prompted Council to approve the release of the sum of N69,044,493.46 to the Ministry of Works, Housing and Transport to facilitate the repairs of the washed - out/eroded portion/section along Panda - Albasu Road, Albasu LGCA. b. Memorandum on the Need and Request for Funds to Enable the Reconstruction of Three (3) Collapsed Culverts along Sumaila, Saya Saya - Kibiya - Rano Road:Three (3) collapsed culverts that limit and seriously disturb movement of people and vehicles along Sumaila, Saya Saya-Kibiya-Rano road were reported to Council for deliberation. Details on the scope of works required for the reconstruction of the failed culverts were presented along with a request for the release of the sum of N40,443,372.38 for the purpose.

Concerted appraisal of the request prompted Council to approve release of the requested sum of N40,443,372.38 to the Ministry of Works, Housing and Transport to enable the reconstruction of the collapsed culverts along the stated road so as to ease movement in the area. c. Request for Funds to Enable the Renovation/Repairs of Gani - Dagora Road in Sumaila LGCA:The contents of the memorandum stated the deteriorating condition of the Gani - Dagora road Sumaila LGCA. A team of Engineers from the Ministry of Works, Housing and Transport visited the site for assessment of the situation and prepared Bill of Quantities to the tune of N73,832,230.83 to enable the execution of the project.

The significance of the project to the laudable policy of the present administration to provide the infrastructure required for use by the citizens was considered by Council. Council approved the release of the sum of N73,832,230.83 to the Ministry of Works, Housing and Transport to enable the execution of the renovation project. However, the funding should be on 50% : 50% basis between the State and Sumaila Local Government. Thus, the State Government and Sumaila Local Government will contribute the sum of N36,916,115.42 each. d. Request for Funds for the Installation of New Streetlights Along Sharada Road from Kofar Dan' Agundi Junction to Sheikh Ja'afar Road Junction, Totaling a Distance of 7.0KM:The policy of the present administration of providing Streetlights along major streets in the metropolis has been receiving support and appreciation from the citizenry. Kano metropolis is being transformed into a modern city with such a provision. As with other major roads, the road cited above was identified as requiring such an important public utility with dual purposes of beautification and provision of security along the road at night. Consequently, the Task Force Committee on Installation/Repairs/ Reactivation of Street and Traffic Control Lights presented a BEME for the project to the tune of N157,301,671.40, which was requested for release by Council.

Council noted, considered and approved the release of the requested sum of N157,301,671.40 to the Ministry of Works, Housing and Transport to enable the Task Force Committee on Installation/ Repairs/Reactivation of Street and Traffic Control Lights execute the project stated above in view of its significance to the Community in the area. e. Request for Funds to Enable the Construction of Hawan Ganji - Badari - Kadare Road in Gwarzo Local Government Council Area:The inhabitants of Hawan Ganji, Kara, Lahadin Kara, Sabon Layin Kara, Badari and Kadare villages and the surrounding area in Gwarzo LGCA are faced with serious problems related to transportation.

Being predominantly farmers, people in the area find it difficult to transport farm produce and other vitally required commodities to and from the area due to the deplorable condition of the existing gravel road. Details on the unbearable condition of the road were presented to Council for consideration along with the scope of works required for the project estimated to the tune of N461,874,928.14, which was requested for release to enable the execution of the highly required project. Council approved the expenditure. f. Request for Funds to Enable the Construction of the Proposed Office Complex for the Nigerian Security and Civil Defence Corps (NSCDS) Kano State Command at Kwankwasiyya City, Zaria Road:The contents of this memorandum proposed the establishment of a befitting Office Complex for the Nigerian Security and Civil Defence Corps (NSCDS), State Command at Kwankwasiyya City, along Zaria road to harness security and ensure protection of lives and properties of the citizenry in the State.

Consequently, the Ministry of Works, Housing and Transport presented estimate for the project to the

tune of N59,270,593.78 and requested approval for its release by Council.

Council noted, considered and approved the release of the requested sum of N59,270,593.78 to the State Ministry of Works, Housing and Transport to enable the execution of the project. g. Request for Funds to Enable the Execution of Renovation Works at Dan' Dawaki Police Station Situated at Shahuci, Durumin Iya in Yakasai Qtrs:Upgrading/improving the dilapidated physical structure of the Police Station situated at the location mentioned above is paramount due to the vitally required security services provided by the Nigeria Police in the

Rabi’u Musa Kwankawaso

area. As such, the Ministry of Works, Housing and Transport prepared an estimate for the project to the tune of N15,581,115.28 and requested for its release to enable the execution of the project.

Cognizant of the role played by the Nigeria Police in the provision of security and enforcement of Law and Order in our Society, Council approved the release of the requested sum of N15,581,115.28 to the Ministry of Works, Housing and Transport to enable the execution of the renovation works at Sha'huci, Durumin Iya in Yakasai Quarters. h. Presentation of Progress Report on the Activities of the Task Force Committee on the Installation/ Repairs/Reactivation of Street and Traffic Control Lights:The Committee quoted above is responsible for the execution of all projects related to the provision of Street and Traffic Control Lights in the State. Progress of its activities was highlighted in the contents of this memorandum. Thus:

SN

Name of Road

i.

Gwarzo Road

Distance

% Completion

Contract Sum

(Kabuga to BUK New Site)

7.230KM

20%

N161,104,716.30

ii.

Sheikh Ja’afar Road

4.250KM

30%

N95,709,249.70

iii.

Independence Road (Eldorado 3.500KM

60%

N81,899,875.60

3.500KM

90%

N77,700,387.90

3.800KM

20%

N78,504,463.40

Junction to Dakata Bus Stop) iv.

Zoo Road to Sheka to Medille, Sabuwar Gandu, Tukuntawa

v.

Suleiman Crescent to Badawa Bus Stop to Ring Road

Council appreciatively acknowledged the presentation urging the Committee to speed up work without compromising quality. i. Request for Funds to Facilitate the Construction of the Proposed New Juma'at Congregational Prayer Mosques at Amana and Bandirawo Cities:The contents of this memorandum abundantly substantiated need for the construction of befitting Juma'at Congregational Prayer Mosques at the newly established Amana and Bandirawo Cities. The sum of N130,574,234.70 estimated for the project was requested for release to enable the State Ministry of Works, Housing and Transport facilitate execution of the project. The project was considered relevant as Council approved as requested. j. Request for Funds to Enable the Construction of Additional 100 2 - Bedroom Prototype Housing Units for the Resettlement of More Flood Victims at Token Village in Warawa LGCA:The memorandum reminded Council of this administration's commitment towards the reconstruction of washout houses by last year's flood disaster with a view of resettling the victims. Already, 100 housing units were completed and distributed to the victims of Token Village by the Government. This brings us to the basis of this memorandum. After the distribution of those constructed, the need to construct more units to accommodate more victims in the community becomes imperative. Consequently, the Ministry of Works, Housing and Transport conducted feasibility survey for the construction of additional 100 units of the houses on 100 plots at Token area, Warawa Local Government Area at the sum of N753, 341.40 per unit. The sum of N75, 334,140.00 was requested and approved for release by Council to the State Ministry of Works, Housing and Transport to enable the execution of the project for citizens affected by last year's flood.

2. MINISTRY OF HEALTH Memorandum on the Need and Request for Funds to Conduct Training of 2,200 Traditional Birth Attendants (TBAs) on Maternal and Child Healthcare in Kano State:The Honorable Commissioner, Ministry of Health amply substantiated the need for the training of Traditional Birth Attendants on maternity and Child Healthcare through the contents of this memorandum.

Principally, the training is proposed for the Facilitators and Traditional Birth Attendants (TBAs) of the 44 LGCAs. 2,200 are expected to attend the training program with each Local Government Council sending 50 participants. Five (5) main aims of the training were presented to Council for consideration, which include: o To provide the TBAs with basic knowledge on HIV modes of transmission and applicable prevention; o To strengthen the TBAs capacity to provide Referrals and serve as treatment supporters; o To strengthen the TBAs skill and knowledge in identifying and referring of risk cases to the nearest Health Facilities; o To enhance Community mobilization and participation in maternal and child health related issues and mother to child elimination of HIV/AIDS; and o To reduce maternal and child morbidity and mortality by 10% from the current 157/1,000 live births by the end of 2013.

Details on the financial requirements estimated to the tune of N53,994,420.00 was presented to Council for consideration and approval for release to enable the conduct of the training. The request was approved.

3. OFFICE OF THE SECRETARY TO THE STATE GOVERNMENT Eight (8) among the fourteen (14) memoranda submitted on behalf of some MDAs for deliberation by Council from the Office of the Secretary to the State Government were approved for execution. Thus: a. Memorandum on the Need and Request for Funds to Purchase an Extra Piece of Land Attached to Ta'adibul Aulad Girls' Islamic Secondary School Situated in Adakawa Quarters for its Expansion:The contents of this memorandum is an appeal from the Management of the School on the need for expansion in order to provide additional facilities to cope with the increased enrolment and decongest the over populated classrooms in compliance with State Government's policy of accommodating Sixty (60) or less number of students per Classroom. The school is a voluntary Organization.

The appeal was based on the following reasons:

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THE NATION MONDAY SEPTEMBER 23, 2013 o The School is the only Girls' Secondary School situated around the Dala Ward of Dala LGCA; and o Shortage of Classrooms compelled accommodating an average of 115 students per classroom.

Council was informed that the Ministry of Land and Physical Planning had inspected the proposed site for expansion in December, 2012 and valued it (land) at N6,973,000.00.

More details were presented for consideration by Council along with the request for the magnanimous approval granted for the release of the sum of N6,973,000.00 to enable execution of the stated purpose.

Considering the laudable policy of the present administration to provide qualitatively in the positive transformation of education in all ramifications, Council approved the release of the sum of N6,973,000.00 for the land and its donation to Ta'adibul Aulad Girls' Islamic Secondary School to facilitate the expansion of the School. Nevertheless, Council directed Dala LGCA to take up and finance the project. b. Request for Funds for the Conduct of Registration Exercise of 1000 Co - operative Societies in the State:The contents of this memorandum presented the request cited above for consideration by Council on behalf of the State Ministry of Commerce, Industry, Co - operatives and Tourism. The Secretary to the State Government politely referred Council to its resolution as contained in Executive Council Extract NO. SSCA/CA/EX/15/1/95 of 30th July, 2013 for the registration of 1000 Co-operative Societies in the State towards the enhancement of socio-economic development.

The issue was that Council granted approval for a Concession for a waiver of the revenue to be realized from the registration of 1000 Co-operative Societies at the rate of N15,000.00 each totaling N15,000,000.00.

However, the Ministry of Commerce, Industry, Co- operative and Tourism requested for the release of the sum of N5,000,000.00 by Council for the conduct of the registration exercise at the rate of N5,000.00 per each of the 1000 prospective Co - operative Societies. Council deliberated on the contents and approved the requested sum of N5,000,000.00 to the State Ministry of Commerce, Industry, Cooperatives and Tourism to conduct the registration exercise for 1000 Co-operative Societies in the State. e. Request for Funds for the Establishment of a Joint Security Committee to Tackle the Problem of Drug Abuse and Illicit Trafficking in Kano State:This memorandum submitted the need for the setting up of a Joint Committee to Tackle the Problem of Drug Abuse and Illicit Trafficking in the State. This Committee will comprise representatives from the SSS, Police, NDLEA, Hisbah, Immigration, Custom, NAFDAC and NSCDC. The main aim of the Committee is to reclaim the 'notorious drug joint' in the State within a year through motorized patrol of all entry and exit points to intercept illicit substances on transit. Composition of membership and credence of the Committee cited above were presented to Council for consideration along with the following requests: i. Granting of approval to procure and allocate five (5) units of Toyota Hilux van at the cost of N6,950,000.00 each totaling 5 x N6,950,000.00 = N34,750,000.00. ii. Granting of approval for the release of trimmed down sum of N10,700,000.00 to cater for effective conduct of activities of the Committee.

Considering credibility of the request, Council approved the release of the requested aggregated sum of N45,450,000.00 to the Office of the Secretary to the State Government to facilitate the purposes stated (i. and ii.). f. Presentation of Report on Pharmaceutical activities in Kano State Vis -a- Vis the Closure of the Illegal Drug Markets:This administration's open stand against illegal dispensing of drug in the State is well known. In fact, since inception, this Government understands that drug abuse and illegal dispensing of drug are problems that must be tackled head-on. The consequence of drug abuse is becoming alarming. The most productive sector of the society, the youths are becoming the most vulnerable. No responsible Government worth its name could fold its arms and watch its citizen being destroyed by unscrupulous elements in the name of being businessmen. Beyond the personal health issues and the devastating effects of drug abuse through illegal dispensing, hundreds of youths are becoming nuisance to the society. This explains the reason behind the submission of this memorandum. The contents of this memorandum notified Council that according to statistic of NDLEA, Kano State has the highest prevalence of drug abuse while Abubakar Sabon-Gari Market remain the source of the supply of fake drug in addition to notably abused drugs, such as Tramadol, Fortwin and Codeine. In addition, the memorandum stated that all Drugs dealers inside Abubakar Rimi Market are operating in violation of the rules and guidelines governing pharmacy practice. Council deliberated on the problems of illegal marketing of drugs, which was the source of drug abuse in the society and approved the following prayers: i. Making all required arrangements for the final nailing of the drug business inside the Abubakar Rimi Market by Government. ii. Approve full implementation of the National Drug Distribution Guidelines in Kano State.

Council appreciatively acknowledged the presentation and granted approval for the execution of the two prayers submitted on the Pharmaceutical activities in Kano State Vis - a - Vis the closure of the illegal drug markets. h. Request for Funds to Support the Bereaved Family of Late Inspector Zula Ahmad of the Nigerian Police:A token sum of N500,000.00 was approved to the Office of the Secretary to the State Government for onward release to the bereaved family of Late Inspector Zula Ahmad; an Officer of the Nigeria Police who died as a result of wounds from gunshots while in active service. Council commiserates with the bereaved family of the deceased Officer.

4. MINISTRY OF SPECIAL DUTIES Presentation of Report from the State Executive Council Committee on the Screening and Selection of 156 Candidates for the 502 Post - Graduates Scholarship Program:The Honorable Commissioner, Ministry of Special Duties, in his mandated capacity as Chairman of the Committee cited above submitted a list of 249 Kano State Indigenous Candidates screened for the 502 Post Graduates Scholarship Program endorsed by the Honorable Commissioner, Ministry of Higher Education. However, the Committee was subsequently directed to select 156 candidates from the endorsed screened list. This was done for sponsorship to study overseas due to begin their courses in October. Council appreciatively acknowledged the presentation and approved the adoption of the list of 156 selected candidates according to the details presented.

5. MINISTRY OF AGRICULTURE AND NATURAL RESOURCES Presentation of Request for Approval to Commence and Release funds for Conducting the Ninth (9th) Batch Training at Poultry Institute Tukwui:The contents of this memorandum informed Council that the eighth (8th) batch training at the Poultry Institute Tukwui has been successfully completed and deservedly blessed by Governor Engr. Rabi'u Musa Kwankwaso, FNSE with a pledge to increase the number of DOC Pullets to each participant from 10 - 50 Units.

Consequent to this pledge, the cost estimates for the ninth (9th) batch training has been revised upwards to the sum of N62,832,640.00, which was requested for release by Council to the Ministry of Agriculture and Natural Resources to enable the conduct of the stated training.

Relevance of the request to the empowerment policy of the present administration prompted Council to approve the release of the requested sum of N62,832,640.00 to the Ministry of Agriculture and Natural Resources to enable the conduct of the ninth (9th) batch training at the Poultry Institute Tukwui.

6. OFFICE OF THE DEPUTY GOVERNOR/HONORABLE COMMISSIONER, MINISTRY FOR LOCAL GOVERNMENTS This Office submitted six (6) memoranda for deliberation by Council. Only two (2) of them were approved for execution. Thus: a. Presentation of Report on the Distribution of Kits to Local Birth Attendants and Conduct of Workshop for IMOS, District Heads and Local Birth Attendants:The Deputy Governor/Hon. Commissioner, Ministry for Local Governments presented four (4) emphatic highlights on the issues quoted above which yielded the forwarding of the following five (5) prayers for consideration and approval by Council i. Conduct of a workshop for the IMOs, District Heads and PHC Coordinators of the 44 LGCAs to avail enlightenment on recording all births at home. ii. Conduct of a workshop on same (as i.) to be undertaken at ward and village Head levels and Ungozomas. iii. That the procured/available 500 delivery kits be distributed to 500 ungozomas from the 44 LGCAs of the State with Tsanyawa, Doguwa, Kunchi, Rogo and T/Wada LGCAs to have 22 ungozomas respectively to benefit, while the remaining 39 LGCAs to have 10 respective ungozomas to benefit from each. iv. Direct the State CRC to select the ungozomas from the 44 LGCAs according to the specification in (ii.) above. v. That the Deputy Governor/Honorable Commissioner, Ministry for Local Governments to forward a convenient date for the occasion (iii.) above.

Council appreciatively acknowledged the presentation and granted approval for the execution of all the five prayers forwarded and directed the Ministry for Local Governments to work in liaison with the State Ministry of Health on the five approved prayers.

53 7. MINISTRY OF ENVIRONMENT Presentation of Uses of Jatropha Curcus and Eucalyptus Plant to Fight Desertification and Concurrently Alleviate Poverty:The Honorable Commissioner, Ministry of Environment professionally intimated Council on the attributes of the two (2) plants named above, through contents of this memorandum. Appropriate details were presented to Council for consideration, which informed forwarding the following prayers: o Government to consider using the two (2) plants for the stated purposes. o Government to consider enacting a team of professionals to visit NARTICT in Zaria and Jaja Farms in Hamdullahi, Albasu LGCA to appraise performance of the two (2) plants and advise Government on the utilization.

Council appreciated the presentation.

8. OFFICE OF THE HEAD OF CIVIL SERVICE All the five (5) memoranda submitted for deliberation by Council from the Office of the Head of Civil Service were approved for execution as follows: a. Presentation of a Request for Audience with Governor Engr. Rabi'u Musa Kwankwaso, FNSE Forwarded by Representatives of the 77 Staff of the National Identity Management Commission (NIMC) Dismissed from Service:The contents of the memorandum informed Council of the dismissal of 77 staff who are indigenes of Kano State by the National Identity Management Commission. The Office of the Head of Civil Service complied with directives issued to confer with the 77 Staff on 28th March, 2013. The dismissed officers expressed their grievances and sought for the intervention of the State Government over their plight.

In depth study of the matter led to numerous pathetic discoveries/findings of which seven (7) points were presented as summarized highlights for consideration by Council buttressed by seven (7) notations climaxed by two (2) alternative options forwarded for consideration any of which could be approved for execution by Council. Thus: o Option A The Kano State Executive Council Chaired by Governor Engr. Rabi'u Musa Kwankwaso, FNSE may consider sanctioning a letter of appeal to the Honourable Minister of Interior requesting for his intervention to prevail on NIMC to re - consider the case of the 77 dismissed Staff so as to pave way for their re instatement. o Option B Extend a "token" assistance to enable them hire the services of competent solicitors to fight their case before a Court of Law especially since all appeals for their re - instatement proved abortive.

Council acknowledged the presentation with concern and directed the Office of the Head of Civil Service to appropriately handle the issue administratively and duly submit report on outcome for consideration. b. Request for Funds to Enable the Conduct of a 2 - Day Re - Orientation Workshop Aimed at Improving the Capacity of Registry Staff Across the State Civil Service:Office of the Head of Civil Service intimated Council, through the contents of this memorandum that, the proposed workshop targets two (2) personnel from each MDA (open and secret registry). Details on the objectives of the workshop were presented to Council for consideration.

Essentially, papers to be presented/discussed by Resource Persons at the workshop will cover issues to do with the following: i. Expose participants to the overall functions of a typical registry in an MDA. ii. Emphasize highlights on the methodology/procedure of ensuring effective handling/processing of mails and record keeping. iii. Presentation of appropriate procedures/categories of filing systems; and iv. Introducing participants to the application of ITC into the registry for improved performance as part of E-Governance drive.

Essentially, ten (10) items required for conducting the workshop were presented along with their cost implications to Council for consideration. An estimated cost of N1,688,500.00 was implied and requested for release by Council to enable the successful conduct of the vitally required workshop.

Council considered the workshop as required and timely and approved the release of the requested sum of N1,688,500.00 to the Office of the Head of Civil Service to enable the conduct of the workshop. c. Request for Funds to Enable the Provision of Uniforms for Junior Staff on GL 01 - 07 Under the Office of the Head of Civil Service:The contents of this memorandum requested for the release of funds to provide uniforms to 105 Junior Staff working in the Office of the Kano State Head of Civil Service comprising Messengers, Drivers, Generator Operators, Cleaners, Security Personnel, Gardeners and Electricians. The Head of Civil Service adjudged it expedient to provide working uniforms for them for easy identification, dignity of their labor and improvement of productivity. Details on the financial requirements to the aggregate sum of N2,536,740.00 were presented for consideration and granting approval for release.

Council noted, considered and approved the release of the requested sum of N2,536,740.00 to the Office of the Head of Civil Service to enable the provision of working uniforms to the 105 Junior Staff working in the Office of the Head of Civil Service according to the details presented. d. Presentation of the Request for Funds to Sponsor Nominated Kano State Government Officials to Attend the 3rd National Workshop on Enhancing Leadership, Good Governance and Effective Service Delivery in Public Service (3rd - 7th November, 2013) at ASCON, Badagry, Lagos:Continuous training and retraining In - Service is among the requirements for efficient productivity for employees in any organization especially governmental where the need for versatility is paramount as things/requirements are dynamic in accordance to time.

The incumbent administration in Kano State under the capable leadership of the second incumbency of Governor Engr. Rabi'u Musa Kwankwaso, FNSE has never relented in providing access to timely and required professional training for staff in the Service of Government.

As such, Office of the Head of Civil Service nominated five (5) Government Officials to attend the National Workshop mentioned above. They include: i. Director, Manpower Office of the Head of Civil Service ii. Director, Special Assignment KARMA iii. Director, AGS KSSSMB iv. Director, AGS REMASAB v. Director, Programs ARTV Details of the financial implications to the tune of N1,125,000.00 were presented to Council for consideration and granting approval for release. Council approved the expenditure. e. Presentation of Brief Regarding Proposal to Conduct a Workshop for SERVICOM Desk/Nodal Officers for all MDAs in Kano State:Council recalled that the Office of the Secretary to the State Government submitted this memorandum and the Head of Civil Service was directed to reappraise its contents thereof and re - present for consideration.

The assignment was executed as the Office of the Head of Service recommended the proposition for the holding of a workshop for Servicom Desk Officers. Setting up Servicom Desk officers in MDAs is an initiative of the present administration being part of the overall "Governance Reform" process for which support is usually granted. Council directed the State Nodal Officer of SERVICOM to package requirements for the take - off of the project/workshop for consideration.

UPDATE ON ACTIVITIES OF THE 116TH EXCO SITTING 1. PASSING OUT PARADE AND CONVOCATION CEREMONY OF THE 60TH REGULAR COURSE CADETS OF THE NIGERIAN DEFENCE ACADEMY Council delightfully acknowledged the recent passing out parade and oath taking ceremony of 60th Regular Course Cadets of the Nigerian Defence Academy, which took place on Saturday 14th September, 2013 at the Nigerian Defence Academy premises in Kaduna State. Out of the 129 graduates five (5) of them were from Kano State: two (2) Army, two (2) Navy and one (1) Air force. Council congratulated them and urged them to be hardworking and disciplined in discharging their duties.

2. PRESENTATION OF AWARDS Council noted with appreciation the two (2) awards given to the State Government by the Central Bank of Nigeria, which are commendations that certify the State's success in the e-payment process being implemented for the payment of staff salary and contractors.

3. 2014 BUDGET CALL CIRCULAR Council noted the usual support by the State Ministry of Planning and Budget towards annual arrangement for proposed programs and projects in the State. Today, Council directed the Ministry to release 'Call Circulars' to all MDAs for the 2014 fiscal year and urged them to ensure timely completion of the proposal, which should focus on the completion of the on-going projects.

Signed: Hon. Commissioner, Ministry of Information, Internal Affairs, Youth, Sports andCulture

54

THE NATION MONDAY SEPTEMBER 23, 2013

THE NATION MONDAY, SEPTEMBER 23, 2013

NEWS Senator raises alarm over landslide in Akwa Ibom

T

HE lawmaker representing Akwa Ibom North-East, Senator Ita Enang, has raised the alarm over the 13 feet deep gullies running through the Calabar/ Itu Highway (from Enen Atai, Ikot Akpan Itam) in Akwa Ibom State.

Enang, while inspecting the preliminary intervention by the Federal Road Maintenance Agency (FERMA) on the road, said unless the federal and state governments take urgent steps to repair the deep gullies, a disaster that can lead to deaths may occur.

The lawmaker said the intervention undertaken by Raycon Engineering Ltd, which is for laterite to be poured into the ravine-like gullies on both sides of the road, may not meet the help the people, who ply

From Kazeem Ibrahym, Uyo

the road, require.

Senator Enang, who went into the jungle to see the level of damage, told reporters that the road would require reconstruction to avoid deaths.

He said: “I have just spoken with the managing director of FERMA. I told him that it was good Raycon was given the task of filling up the gully created by the erosion. But this gully that runs through the stretch of this road requires more than just filling-up.

“The people, who ply this road, do not even know that there is nothing underneath holding this road. The sand has been washed away with the possibility of a landslide of a greater dimension.”

Enang went on: “As part of my responsibilities to my peo-

55

ple and being part of the government, when I saw this disaster waiting to happen, I informed FERMA about it and visited their office.

This made them to commission Raycon to do this job. It’s a good step, but we need more than this. In fact, we need the diversion of this road.

“I know our governor has a large heart, loves his people and would not want any life to be lost on this road. I plead with him to engage the Federal Government on the dangerous state of this road with a view to beginning its reconstruction. We know that with his influence in national politics, this is possible.”

The site engineer, Ukeme Udoette, said the present state of the road is dangerous to motorists.

He said the pouring of laterite into the gullies is only a temporary intervention, adding that what is required is a reconstruction.

Kidnapped accountant freed

S

ECURITY operatives in Akwa Ibom State have rescued Mrs. Eno Umoren, an accountant with Ibom Power Company Limited.

She was rescued from gunmen suspected to be kidnappers seven days after her abduction.

Mrs. Umoren, an indigene of Mkpat Enin Local Government, was kidnapped last Saturday when returning from church in front of her home in Ikot Abasi.

Mrs. Umoren, who spoke with reporters at the Nigerian Navy Base, NNS Jubilee, in Ikot Abasi, said: “I was returning from church on Saturday when I was abducted

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Parties argue over INEC’s poll date From Okungbowa Aiwerie, Asaba

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OLITICIANS at the weekend argued over the October 5 proposed date for election to fill the Delta Central seat.

The seat became vacant following the death of Senator Pius Ehwerido on June 30.

An agreement was tentatively reached following insistence by the Independent National Electoral Commission (INEC) that only its headquarters would ratify the decisions reached at a stakeholders’ forum organised by INEC in Ughelli, Delta State.

The Vice Chairman, All Progressives Congress (APC), South/South zone, Mr. Tom Ikimi, initially rejected the proposed date, saying October 26 would be ideal.

From Okungbowa Aiwerie, Asaba

al unrest.

It viewed with dismay that “the recent National Minimum Wage as adopted by the Delta State Government is not being fully implemented”.

The JNC praised the government for “prompt/regular payment of workers’ salaries and infrastructural development ongoing.”

Investigation showed that N7.6 billion would be needed to pay 1,872 retirees from Jan-

F

uary last year to December.

It was also learnt that another N1.8 billion would be needed to clear government’s indebtedness to retirees, who are due for retirement between September and December.

The Nation gathered that the amount deducted by government from the salaries of civil servants, but not paid to their Pension Fund Administrators (PFA), stood at N2.7 billion from May 2012 to February 2013.

‘Southsouth ‘ll fight for Jonathan in 2015’

ORMER Rivers State governor, Sir Celestine Omehia, has said the South-South people would support President Goodluck Jonathan in 2015.

He said it would be disrespectful and unreasonable for any region to think of taking power from the South-South in 2015.

The former governor spoke yesterday during a visit by one of his political forma-

From Precious Dikewoha, Port Harcourt

tions, the Rivers State Redemption Vanguard, in his home resident in Port Harcourt.

He said the South-South had paid its dues by supporting other regions to grab power, adding that it would be an act of betrayal for any part of the country to refuse to support the South-South in 2015.

in front of my home and driven to an unknown destination.

“My face was covered. I didn’t see anybody, but I heard voices. They made calls. This morning I was rescued and brought here. I stayed in the kidnappers’ den for one week.”

The victim’s husband, Akan Umoren, said after the abduction, the kidnappers demanded N30 million, the family negotiated and it was reduced to N25 million.

The Commander of the Nigerian Navy in Ikot Abasi, NN Jubilee, Commodore

Isaac Ogbole, said Mrs. Umoren’s release was made possible through a synergy with other security operatives.

He said nobody was arrested as the kidnappers bolted when the security operatives stormed their hideout.

The Chairman of Ikot Abasi Local Government, Ufot UdoInyang, hailed the security operatives for ensuring the release of the victim.

He said: “I am grateful to the security agencies. When I heard about the abduction of this woman, I was sad. This is the first time we are experiencing this incident. I have advised youths in Ikot Abasi to abstain from crimes.”

N100b for free health care in Rivers

Civil servants threaten strike in Delta

HE National Public Service Negotiating Council (NPSNC), Delta State Council, has described the contributory pension’s scheme “as a monumental failure”.

It threatened industrial disharmony should the Delta State government fail to meet its demands.

In a communiqué issued at the weekend by its Joint Negotiating Council (JNC), it urged “the government to address the issues raised between now and October 31, to avoid industrial disharmony.”

It accused the government of failure to pay its counterpart contributions to workers as well as retirement benefits to retirees from 2012 to date.

The communiqué, signed by the chairman, Goodluck Ofobruku and secretary, Lucky Edewor, reads: “In view of the foregoing, JNC is no longer comfortable with government’s fragrant disregard for workers’ welfare and therefore demands the following: Immediate release/payment of outstanding government 10 per cent contribution to workers’ Retirement Savings Account and immediate payment of retirement benefits of retirees in the state from 2012 to date.”

It accused government of refusal to meet its leadership in the last five years to discuss issues that can cause industri-

From Kazeem Ibrahym, Uyo

•Amaechi

G

OVERNOR Chibuike Rotimi Amaechi of Rivers State has

pumped N100 billion into health care, Commissioner for Health, Dr Sampson Parker, has said.

He spoke at the weekend an event organised at the Braithwaite Memorial Hospital, Port Harcourt to appreciate ophthalmologists (eye specialists) from US-based Hospitals for Humanity, who performed successful surgeries with eyesight restored to over 200 glaucoma and cataract patients, in collaboration with the Rivers

PDP sweeps 12 councils in poll

T

HE Peoples Democratic Party (PDP) won in 12 of the 18 local governments in the election held in Cross River State at the weekend.

The party was returned unopposed in the local governments in the chairmanship and councillorship elections, the Chairman of the Cross River State Independent Electoral Commission (CROSIEC), Mr. Patrick Otu, said yesterday.

The councils are Abi, Akamkpa, Akpabuyo, Bakassi, Bekkwarra, Biase, CalabarSouth, Etung, Ikom, Obubra, Odukpani and Ogoja.

However, in Biase, the councillorship election at

From Nicholas Kalu, Calabar

Adim ward was postponed till September 28, Otu said.

This is the only ward in the local government where there will be a contest, as the All Progressives Grand Alliance has a candidate there.

Otu said the election was postponed because they sensed a possible outbreak of violence.

He said the poll had to be shifted to a “special” day so that there would be adequate security.

He said the results in the remaining local governments would be made available as soon as they were brought in.

State Government.

Dr. Parker said Governor Amaechi released almost N100 billion into the health care delivery, describing him as having a kind heart.

He thanked God for making Amaechi the governor, adding that he had spent the state’s funds for the people’s benefits.

The ophthalmologists from Hospitals for Humanity, were in Rivers State in partnership with the Amaechi administration to treat glaucoma and cataract eye patients.

The founder and team leader of Hospitals for Humanity, Dr. Segun Ajayi, said they were able to carry out eye surgeries on 200 patients with support from the workers at the Braithwaite Memorial Hospital (BMH).

The Head of Department of Ophthalmology at BMH, Dr. Godswill Pepple, represented by Dr. Godswill Nathaniel, said it was a new beginning in eye care service delivery in the state.

CHANGE OF NAME NWOGU

I FORMERLY MISS IJEOMA PERPETUA NWOGU NOW WISH TO BE KNOWN AND ADDRESSED AS MRS IJEOMA PERPETUA OKOLOJI. ALL FORMER DOCUMENTS REMAIN VALID, GENERAL pub. take note.

56

THE NATION MONDAY SEPTEMBER 23, 2013

NEWS •All Progressives Congress leaders (APC) Gen. Muhammadu Buhari (second left) and Asiwaju Bola Tinubu (third left); Mallam Garba, (left); Lord Mayor of Manchester (fourth right) and others at the inauguration of the Democratic Progressive Movement (DPM) in Manchester, UK...at the weekend.

PDP wins Jigawa by-election

T

From Ahmed Rufa’I, Dutse

HE Peoples Democratic Party’s (PDP’s) candidate, Alhaji Murtala M. Abubakar, has been declared the winner of last Saturday’s by-election into Ringim Constituency in the Jigawa State House of Assembly.

Announcing the result, the Independent National Electoral Commission (INEC), through its Chief Returning Officer, Malam Sani Hussaini Kazaure, said Alhaji Abubakar won the election with 22,430 votes, defeating his opponent from the All Progressives Congress (APC), Alhaji Aminu Sule Sankara, who got 11, 536 votes.

The chief returning officer said the election was conducted in 11 wards, which comprised 157 polling units.

But an APC chieftain and a former member of the House of Representatives, Faruk Adamu Aliyu Nasiru, condemned the election. He said it was not free and fair, adding that violence marred it in many polling units.

A combined team of soldiers and police at the weekend arrested the eldest son of a senator from the state for alleged electoral fraud. Police chief Kabiru Mohammed confirmed the arrest.

PUBLIC NOTICE CITIZENSHIP INTEGRITY INITIATIVE This is to inform the General Public that the above named Organization has applied to the Corporate Affairs Commission, for registration under Part C of the Company and Allied Matters Act 1990.

THE TRUSTEES ARE; 1.ADEWALE TAIWO OLATUNJI CHAIRMAN 2.NOJIU ABIODUN DABIRI 3.OLUSINA RAFIU SOFOLA (SAN) 4.ABIODUN OGUNSANYA 5.ADEWUNMI ADEDEJI OGUNSANYA 6.PAUL OLUSEGUN OMOTOLANI DACOSTA 7.OLUFEMI OLUFELA ANIKULAPO-KUTI 8.MOSHOOD OLAYIWOLA OLATUNJI GENERAL SECRETARY THE AIMS AND OBJECTIVES ARE; 1.To educate, sensitise Teens and Youths on Corruption 2.To provide a platform to report anonymously corruption practice and to provide a platform for discussing best solutions 3.To organize training, workshops, events and programmes that promote skills Any objection to the registration should be forwarded to the Registrar General,Corporate Affairs Commission,Plot 420 Tigris Crescent, Aguiyi Ironsi Street, Maitama, Abuja within 28 days of this publication.

Signed: GENERAL SECRETARY

Boko Haram kills three policemen in Kano

T

HE death toll in suspected Boko Haram’s latest attack at Benisheik in Borno State has risen to 142.

During the attack, the suspected insurgents dressed as soldiers, mounted checkpoints and shot travellers on a highway.

“We recovered 55 bodies on Wednesday and 87 on Thursday,” Abdulaziz Kolomi, an official of the Environmental Protection Agency in Borno State, told AFP. The previous casualty fig-

•Borno death toll hits 142 From Kolade Adeyemi, Kano

ure was 87.

The insurgents, suspected to be Boko Haram members, also torched buildings.

The motive behind the assault was not clear, but suspected Boko Haram members have carried out reprisals on residents over the emergence of vigilance groups, which were formed to assist the military.

Residents said the attackers targeted people from Borno State, allowing other people to go scot-free.

Benisheik was also a scene of clashes on September 8 between suspected Boko Haram gunmen and members of vigilance groups.

Suspected Boko Haram members last night shot dead three policemen in Kano, it was learnt.

The incident happened around 9:40 pm at Kabuga

quarters in the ancient city of Kano.

Kano, which has been relatively peaceful, was yesterday reawakened to the insurgents’onslaught.

Information were sketchy, but sources said the Boko Haram members stormed a particular spot where the policemen were keeping vigil.

The terrorists shot and killed them before escaping.

Residents confirmed the killings. Police spokesman Mogaji Majia said he was aware of the killings, but had not been officially briefed.

Akume: APC’s door open to new PDP senators

S

ENATE Minority Leader Senator George Akume has assured members of the new Peoples Democratic Party (nPDP) in the upper chamber that the door of the All Progressives Congress (APC) is open to them.

Akume said this in an interview after a caucus meeting of the APC senators in Abuja at the weekend.

He also said the meeting was informed by the need for opposition lawmakers to map out their legislative agenda to ensure robust and vibrant opposition in the upper chamber.

The Benue State-born lawmaker said if the 22 senators, who formed the bulk of the new PDP in the Senate, decided to join APC, they would be accommodated.

He described the new PDP

T

From: Onyedi Ojiabor,

Assistant Editor and Sanni Onogu, Abuja

senators as a group of “great, courageous, bold and imaginative” lawmakers.

On why the meeting became necessary, he said: “We met to renew faith in this new development; to congratulate our leaders for this spectacular achievement in recorded history.

“In the past, parties in this country strove for alliances, but this is the first time that we are into a full-blown merger arrangement and agreement. We spoke at length and what is very basic is our legislative agenda.

“We think it is very important because Nigerians are interested in knowing what the opposition has for them.

“Nigerians want to see a

difference in the way and manner the affairs of our country are managed.

“Nigerians are interested in a vibrant, purposeful and meaningful opposition and we are fully prepared to do exactly that.

“So we as a family, we are here as people, who are recreating hope for our nation.

“This nation has lost hope, but we want to plead with Nigerians that tomorrow will be better than today.”

On whether there are plans to change the leadership of the Senate in view of the emergence of the new PDP, he said: “What I know as a fact is that there have been some structural and institutional changes in the PDP and this may lead to some form of realignment at all levels of governance.”

Akume added: “I do not know about any change of leadership agenda. I am not aware of that. I don’t know and I must confess that I am not aware of that.

“All I can say is that what is happening in the PDP is not new. It has happened to other political parties before.

“Basically, they deserve commendation not condemnation.”

Asked whether the APC will forge political ties with the new PDP senators in the Senate, he said “I don’t know.

It depends on the way the new PDP is moving. It is always in the nature of politics that alliances are forged as appropriate and they are intended to advance the cause of justice, development, peace, territorial integrity and stability of the polity.

‘Kwara not neglecting Christians’

Kwara State Governor Abdulfatah Ahmed has denied neglecting Christians.

The Christian Association of Nigeria ( CAN), Kwara State chapter, accused the government of lopsided appointments at all levels in favour of Muslims.

The body consequently demanded fair representation at all levels from the state government or it would boycott its membership of the Religious Committee.

Speaking during this month’s edition of a monthly radio programme, The Governor Explains, Governor Ahmed said political appointments and patronages have never been based on religion “and shall never be.

From Adekunle Jimoh, Ilorin

He said appointment of political office holders in the state has always been purely on local government basis. “It will be perilous to give political patronages on religion basis, especially as we try to evolve a nation out of a heterogeneous country like Nigeria.”

Advising Kwarans not to allow themselves to be dragged into any religious crisis, the governor said all appointments in the state had inputs from the various local governments as the focus of government is to run an inclusive administration that accommodates all, irrespective of religion or ethnic affiliations.

Speaking on road construction, the governor

promised to complete all ongoing constructions and rehabilitations across the three senatorial districts and appealed to the Federal Government to speedily intervene in the Ilorin/Jebbah, Ajasse/Erin-Ile roads to enhance the economic activities of the people.

On water projects, Governor Ahmed said while his government spends N10 million monthly to sink boreholes across the state, contractor handling the water reticulation project in the state capital will soon get back to site.

The governor, who also confirmed that the five general hospitals in Omu-Aran, Share, Offa, Kaiama and Ilorin will be ready for inauguration by the end of November, assured the peo-

•Ahmed

ple that “another five will be renovated to modern standard with qualified medical personnel as part of our determination to bring health services to the doorsteps of the people.”

Governor Ahmed thanked the people for their unalloyed support and trust and appealed for understanding to enable his administration deliver more on its electoral promises.

THE NATION MONDAY, SEPTEMBER 23, 2013

57

NEWS G-7 governors to boycott Oct. 7 meeting with President Continued from page 4

longer enjoy the special privileges the blue-coloured passport confers on its holder, meaning that they can be arrested like ordinary citizens.

“This directive, if eventually carried out, would only end up unnecessarily overheating the polity. Those encouraging the President in this direction are actually his true enemies as it is not wise to incur the wrath of these great Nigerians knowing the implications for him politically”.

The faction pleaded with Dr. Jonathan to consider the consequences of working against the legislators who have stood by him all these years and even introduced the ‘doctrine of necessity’ that brought him to power against the wish of the cabal that sought to exploit the illness of the late President Umaru Musa Yar’Adua, to rule by proxy.

The Baraje faction also called on Jonathan to reinstate his Special Adviser on National Assembly, Senator Joy Emodi, who was relieved of her appointment on Friday.

The faction alleged that Emodi was sacked because she voiced her objection to financial inducement of members of the National Assembly for the purpose of impeaching their leaders.

“If this is true, we hereby demand her immediate reinstatement. For Senator Emodi to be bold enough to tell Mr. President the implication of such a corrupt inducement of the lawmakers, should earn her commendation rather than a sack. “ Instead of sacking such a forthright and patriotic Amazon, the President should sack those hawks around him planning to ridicule him by encouraging him to embark on acts capable of making him very unpopular

Abuja killings: security agents comb Apo Continued from page 4

•Aliyu

amongst his supporters and followers”, the statement added.

Rather, Baraje called for the sack of Aviation Minister, Princess Stella Oduah, for abandoning work on the remodeling of the Port Harcourt International Airport.

The faction alleged that the minister’s action was informed by the ongoing political friction between the President and the Rivers State Governor.

“We plead with you, Mr. President, not to embark upon any further act or impunity that will endanger the peace and unity of our troubled nation”, the faction said.

‘N850b saved in downstream oil sector’

Continued from page 4

pots such as Gombe, Makurdi and Minna, the minister noted, had been out of service for over 10 years, until they were rehabilitated to ensure uninterrupted supply of fuel and to boost employment.

Mrs. Alison-Madueke said the government had promoted and popularised gas, a major future product in Nigeria, reContinued from page 4

said given the circumstances of the death of President Umaru Yar’Adua and given the PDP zoning arrangement, it was expected that the North was to

sulting in the drastic increase of the nation’s LPG consumption to 250,000mf, from 100,000mf in 2011.

“The need to get the gas sector to drive growth in all sectors of the economy especially the agricultural sector, necessitated the excision of some key areas of the Gas Master Plan from the PIB for accelerated implementation under the Gas

Revolution Agenda. She added that the programme had begun to yield dividends with plans for the establishment of a number of new fertilizer plants at advanced stage. The landmark pioneering efforts of NIPCO in Benin for LPG and CNG; the Oando and Technoil popularisation of small gas cylinders for low income earners are all good examples.

produce the President for a given number of years.

“I recall that at that discussion, it was agreed that Jonathan would serve only one term of four years and we all signed the agreement. Even

when Jonathan went to Kampala, in Uganda, he also said he was going to serve a single term. “I think we are all gentlemen enough; so when the time comes, we will all come together and see what is the

press statement. We are not paid to kill innocent Nigerians, we have obligation to protect them.

“We got necessary information and moved in line with our mandate to protect lives and property. If we had waited for these people to wreak havoc, the same set of people criticising us will say the security agencies have gone to sleep.

“We arrested some suspects who openly confessed that they are Boko Haram members and admitted that the duplex was where they used to meet.

“As far as this war on terrorism is concerned, how many times have we gone to uncompleted buildings? We had basis to be at the affected duplex based on cogent security reports.

Why have not entered any uncompleted building elsewhere?

“We have never gone to the streets harassing people. Of what benefit will it be to the SSS to be killing Nigerians? We respected the rule of engagement as far as Friday operation was concerned. Going by the rule of

engagement, we do not shoot unless we are shot at.

“When we have to carry out an operation, we use the element of surprise in order to get results.

We could not have informed those in the uncompleted building that we were coming to raid them.

On the claim by some of the victims that they were innocent, Ogar said: “There is never a time you interrogate an armed robber that he would confess being part of a robbery operation.”

She asked Nigerians for support if the nation wants to win the war against terrorism.

Ogar added: “If we want to rid the nation of terrorism or evil, we must be able to sacrifice our comfort. We should not be whipping up unnecessary sentiments on criminal issues.

“When an incident happened in Boston, the United States, people cooperated to arrest the perpetrators. Without the cooperation of Nigerians, we cannot succeed.”

But a Senator, Alhaji Dangana Ndayako said the Federal Gov-

ernment must conduct independent probe in spite of the claim of the SSS. He said: “The government should not allow this type of thing to happen again. Everybody who is used to Abuja knows that all these uncompleted houses are occupied by those who work for the rich who cannot provide accommodation for them. The rich know where they live.

“Yet, the security agencies trailed these migrant workers and classified them as Boko Haram. This is unbecoming.

“The National Assembly should put its house in order and probe this incident. The Executive has failed Nigerians, the Legislature and the Judiciary must save the situation.

“It is most unfortunate today that we cannot hold our government responsible in any way.

“Nobody is doubting that there is Boko Haram but the security agencies must get to the root of terrorism and address it but not by killing innocent citizens.”

JNI laments sorry state of the nation

Continued from page 4

firmed to be true. And it tells Nigerians the sorry state of the security operatives in Nigeria.

“As always, the JNI calls on all concerned to fear God in their dealings and put a stop to spilling of blood for no just cause.

Governor hides Jonathan’s one-term pact document

right thing to do.”

The Special Adviser to the President on Political Matters, Ahmed Gulak, had insisted that there was no time Jonathan entered into a single-term pact.

He said, “Rather than insist-

“2015 is two years ahead, but regrettably, on frequent basis, innocent souls are being maimed, killed or massacred for no reason. Therefore, the JNI calls on the Muslim Ummah to rise above the tide by engaging in supplications to Allah, the Most High to bring to an end ing on an agreement that does not exist – since anybody can contest for the highest office in the land, those who are so interested should declare their interest and contest.”

these acts of barbarism.

“JNI calls on the Federal Government and the respective State Governments concerned to constitute a Commission of Enquiry over these matters. We however send our condolences to all the affected State Governments and their good people.

“JNI however reiterates its earlier call that rules of engagement should be professionally employed by the Nigerian Army, the Police, SSS and other security agencies in curbing insurgencies, so as to reduce collateral damages recorded in such types of upheavals”.

THE NATION MONDAY, SEPTEMBER 23, 2013

58

T

From Westphalia To United Nations: Whither The Peace?

HE Peace of Westphalia in 1648 bequeathed unto humanity a pragmatic mechanism notably and decidedly guaranteeing sovereignty, suzerainty and dependence of nation-states over some others. In other words, the evolution of modern states came out of this umbrage that crystallize into a formation of what we now recognize as the Balance-of-Power. Ever gone for the most part were feudalism and the rule of religion in the affairs of men.

The Greco-Roman democratic ethos was established by the way of market square exchange of logical ideas for the betterment of the common good, within a particular geographical space; be it local state or national..

For once it repudiated feudalism as a way of illogical governance while at the same time established an open playing field for all concerned in approximating their Godgiven normative appurtenances.

Within this prismatic and quagmire schema lay the human tendency to falter and attend to hubristic inclinations. People and nationalities differ and unfortunately suffer in

adjusting to this new found norm.

We now live in a conflictual world, where power: military and or economic rule supreme.

Westphalia was supposed to establish a systemic delineation of systems of appropriating governance from the self-acclaim arrogance and hereditary voyeur of feudalism to a more subtle, civil and orderly succession of municipalities and civil governance.

We are now at this threshold because we find ourselves unfortunately in a yet unending warfare in Syria.

We in this column do not advocate unnecessary military solution as the be- it and end- it- all solution to the Syrian war within, and indeed for any domestic military incursion in any country for that matter.

We are just disturbed that by the day, the human causality in Syria, keeps growing not to talk of internally and outside disposed population now in the millions wallowing in abject poverty and privation in Jordan. Turkey, Lebanon and other neighbouring lands.

At the end of the day, we

The Syrian crisis will not be the first nor the last of United Nations's many tests of global resolves. After all, we have had other thorny international issues with various major players exerting somewhat influences to the consternation of the whole civilised but uncanning world are stuck in the exigencies of the international wherewithal that is supposed to checkmate our excesses as actors in the intriguing theater of international conflagration and cooperation.

The League of Nations encapsulated out of the travails of World War 1 and was supposed to placate the outcomes and syllogisms of the inadequacies of a world that was desperately in search and in need of a potent peace.

Yet another war, was

trusted on humanity as in World War II and which now was proclaimed as the war that will end all wars.

With the victory of the Allied Forces, a rebirth. came in the wake of retooling , reconstruction and operational reawakening of a new international body, so we thought.

The idea of the 5 BIG BOYS was a means of putting some checks on how this new body is supposed to check-mate each other to the betterment of the weaker nations. So 1945 welcomed the United Nations.

Anyway, we are reviewing this now and here because of the human travails and continued human decimation in Syria. This will not be the end of human suffering as we know it in modern times but it just boggles the mind as the electric eclecticism and murderous dimension that the war within in Syria has taken in recent times vis-à-vis its contemporaneousness in the Middle Eastern and Northern African nations quest for a governmental rebirth.

We are worried about the latter day interventionist modalities of the United Nations in troubled spots in most parts of the world.; its

Global Focus DAYO FAKUADE, Foreign Editor sms 08134230367

daborgu@gmail.com effectiveness and non in placating what start in most cases as a domestic quest for power sharing and later as a perspicuity in monolithic economic aggrandizement by a mostly dictatorial ruling cabal. We are worried about the half-heartedness of the super-powers in matters that affect their pecuniary interest as compared to the global interests of wider international significance.

We are worried about a latent resurgence of decadeslong resurgence of a cold-war that bodes no one any good; curiously now through the back door of mercantilism, espionage and e-terrorism.

The Syrian crisis will not be the first nor the last of United Nations's many tests of global resolves. After all, we have had other thorny international issues with various major players exerting somewhat influences to the consternation of the whole civilised but uncanning world.

World War II was supposed to be the war that ends all wars. That was 1945 and the international community still struggles with one concatenation of conflagration or the other from the Middle East to the Philippines and generally to

no end of the global and ideological divide. Iraq, after the war of liberation, so be it called, is witnessing a postwar sectarian murderous carnage of unimaginable proportions.

Even, unproven terrains like Philippines is lightening up while the almost forgotten Al-Shabbab is now snaking up to fresh venomous impetuosity not only in its traditional base of Somalia but now in the entire East African terrain.

Now we are struggling with Russia and China characteristically using their veto power in this ongoing differentiation with Syria.

Hey, Russia can as well tell us that Israel perfunctorily violates United Nations resolutions with impunity with United States' support but all these do not add up to what the United Nations' ethos stands up for in the upliftment of peace in the international arena.

So, the big question is whither the peace that was supposed to be upheld from 1648 to 2013?

We will continue to tinker with this and other matters as we have no other globe than we now do. Keep the peace and see you next week.

FOREIGN NEWS

President’s nephew, Ghanaian author, Jonathan condemns attack 57 others killed in Kenya terror attack P

P

RESIDENT Uhuru Kenyatta said his nephew was among the 59 people confirmed killed in an ongoing siege at the Westgate shopping mall in Nairobi.

Kenyatta, who was elected in March, told reporters at a news conference that his nephew and the nephew's fiancée had been confirmed among the dead.

"These are young lovely people I personally knew and loved," he said, promising retribution against the "cowardly" attackers.

Kenyatta did not identify his nephew further, but local reports gave his name as Mbugua and that of his fiancée as Wahito. There were also reports that the president's older sister was at the Westgate mall at the time but escaped.

Also killed was the celebrated Ghanaian writer Kofi Awoonor, who was in the Kenya capital for the Storymoja Hay literary festival. Awoonor was not due to speak at the festival that day so went shopping with his son, who was reportedly shot and injured.

The previous evening Awoonor, who was also an academic and formerly Ghana's ambassador to Brazil, Cuba and the United Nations, had dinner with one of Kenya's leading conservationists, Paula Kahumbu. The pair discussed Kenya and its problems, she said: "He was disappointed that Kenyans did not feel that Kenyans were in control of our fate."

Three British nationals were also among the confirmed dead, with the Foreign Office warning that this figure was likely to increase. Officials did not name

them, but said next of kin had been told. David Cameron called the assault, claimed by the Somali Islamist group alShabaab, "an absolutely sickening and despicable attack of appalling brutality". He added: "Because the situation is ongoing we should prepare ourselves for further bad news.

Our thoughts also should be with the Kenyan government and the Kenyan people at this time."

Nationals from seven other countries were confirmed as dead, among them Annemarie Desloges, who served in Canada's high commission to Kenya. Another Canadian died.

The one American confirmed as dead was the wife of a man working for the US Agency for International Development, US officials said.

India's foreign ministry said two of its nationals died, while two French women were killed, according to President François Holland. The Dutch foreign minister, Frans Timmermans, a 33-year-old Dutch woman died.

Also killed were a 38-year-old Chinese woman and one South African.

The Kenyan military remained in a tense standoff with Islamic extremists yesterday, as the toll rose to 59 dead, including children, and 175 wounded in the attack.

Multiple barrages of gunfire erupted Sunday morning from inside the building where hostages are being held by militants. The radicals attacked the mall Saturday and remained inside throughout the night.

"The priority is to save as many lives as possible," Joseph

Lenku said, reassuring the families of the hostages in the upscale Westgate mall. Kenyan forces have already rescued about 1,000 people, he said.

Somalia's al-Qaida-linked rebel group, al-Shabab, claimed responsibility for the attack in which they used grenades and assault rifles and specifically targeted non-Muslims.

British Foreign Secretary William Hague said late Saturday that his government had sent a rapid deployment team to Kenya to help. Britons had undoubtedly been caught up in the "callous and cowardly and brutal" assault at the Westgate mall, said Hague.

The United Nations Security

F

Council condemned the attacks and "expressed their solidarity with the people and Government of Kenya" in a statement.

There was some good news on Sunday, as Kenyan media reported that several people in hiding in the mall escaped to safety, suggesting that not everyone who is still inside is being held by al-Shabab.

Cecile Ndwiga said she had been hiding under a car in the basement parking garage.

"I called my husband to ask the soldiers to come and rescue me. Because I couldn't just walk out anyhow. The shootout was all over here - left, right- just gun shots," she said.

RESIDENT Goodluck Jonathan yesterday condemned the loss of lives resulting from terrorists attack in Nairobi, Kenya In a statement by his Special Adviser on Media and Publicity, Dr. Reuben Abati, the President extended condolences to President Uhuru Kenyatta and all Kenyans over the shocking loss of lives.

"President Jonathan and Nigeria join the rest of the world in condemning the atrocious, callous and abominable attack on defenceless Kenyans and foreign nationals at the Westgate Shopping Mall in the Kenyan capital," the statement by Presidential Spokesman Reuben Abati said.

"The President assures President Kenyatta and the people of Kenya of Nigeria's

From Augustine Ehikioya, Abuja

sympathy and full solidarity as they grapple with the consequences of the attack and strive to end the terrorist siege" "President Jonathan further assures them that in keeping with the spirit of recent agreements for enhanced bilateral cooperation between Nigeria and Kenya, the Federal Government will give all possible support and assistance to Kenya in its efforts to contain the scourge of terrorism and avoid a recurrence of yesterday's heinous attack on Nairobi", it stated "He prays that God Almighty will comfort all those who lost loved ones in the attack and grant the injured speedy recovery." It stated

The man Kofi Awoonor

OR Professor Kofi Awoonor, Ghanaian poet and prolific author, it is death in the shopping mall. Born on March 13, 1935, the renowned literary prodigy and diplomat died after sustaining serious injuries in the stomach during the bloody attack at the Westgate shopping mall on Saturday, September 21, in Nairobi, Kenya.

The shopping center where he met his untimely death was the scene of a fierce terrorist attack, which Al- Shabaab, an extremist group, unleashed on the east African country last Saturday. He was in Nairobi as a participant in the Storymoja Hay Festival, a four-day celebration of writing, thinking and storytelling, before violence claimed his

By Adekunle Yusuf

life on the day he was billed to perform and showcase his skills. His death has since thrown Ghana and indeed the entire literary universe into mourning mood.

Awoonor, who was educated at the University of Ghana and University of London, was an academic that enjoyed a reputation as an author whose works richly combined the poetic tradition of his native Ewe people and the contemporary and religious symbolism to depict Africa during decolonization. In his 78 years on earth, the trajectory of his career crisscrossed many fields. At a point, his career took him to the University of Ghana where he taught African literature.

While at the University of Ghana, he wrote his debut literary work, Rediscovery and Other Poems, in 1964, basing it on oral African poetry. He also managed the Ghana Film Corporation and founded the Ghana Play House, among other accomplishments.

At the University of London, where he studied literature, Awoonor wrote several radio plays for the British Broadcasting Corporation, BBC, before plying his trade in the United States, US, in the early 1070s, where he also taught in some universities.

While in the US, he wrote This Earth, My Brother (1971), a cross between a novel and a poem, and Night of My Blood (1971), before returning to Ghana in 1975 as head of English Department at the Uni-

•Awoonor

versity of Cape Coast.

As a writer, Awoonor used most of his poems to explore his roots and the impact of foreign rule on Africa. But he soon landed in trouble when he was arrested for allegedly helping a soldier accused of trying to unseat the military government to bolt out of Ghana, spending time in prison without any trial.

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SPORT EXTRA

•Siasia

F

ORMER Super Eagles’ Chief Coach, Samson Siasia has tipped Chelsea midfielder Mikel Obi to sclore more goals for his Club and the Eagles only if he continues to find himself in the right position to hit the ball into the net.

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Siasia: Mikel’ll score Ikhana quits coaching N more goals if...

From Segun Ogunjimi, Abuja Siasia who gave Mikel the chance to break into limelight by featuring him in the Flying Eagles Class of 2005, that won silver at the U-20 World Cup in Holland and the midfielder eventually emerged the second best player of the tournament behind the Most Valuable Player, Lionel Messi ,argued that nobody should be blamed for Mikel’s

lack of goal instinct, while playing for club and country adding that the player must at all time try to find a space for himself in the attack in order to get the goals.

The former International, however, commended Mikel for making efforts at goal, while encouraging him to do more by practising this technique which according to him will make him a more accomplished midfielder.

Imo Heartland Flickers lift IEI Super League in Port Harcourt

I

MO Heartland Flickers are the new champions of the IEI Hockey Super League after they defeated favourites Delta Queens 1-0 in the final played Saturday at the Adokiye Amiesimaka Stadium in Port Harcourt.

Chioma Ekweremadu's first half strike ensured that the Imo State reps won the prestigious club Cup competition sponsored by the International Energy Insurance(IEI).

Head coach of the Imo Heartland Flickers, Jude Nze told NationSport that he was happy that his wards did Imo State proud by winning the competition despite stiff resistant from Delta Queens.

Nze was also glad that his players avenged the 1-3 loss

•Pip Delta Queens 1-0 •Rivers grabs third place From Tunde Liadi,Owerri

suffered to the same side at hockey pitch of the Otunba Dipo Dina Stadium,Ijebu Ode during the National League's Atlantic Conference play-off decided between September 4 and 8.

"I am happy to win the trophy.

I am grateful to the inspirational support from the Imo government. We have made the state proud and we hope to do the same during the African Club Female Championship slated for Accra, Ghana later in the year.

"We shall go back home going straight to resume training after

few days break. We want to do well during the competition in Ghana," Nze told NationSport.

Meanwhile, Hosts Rivers beat Edo 1-0 to emerge as third best in the female category of the just concluded IEI Super League held in Port Harcourt.

Rivers had lost a keenly contested semi final tie to Imo Heartland Flickers by the same scoreline after extra time on Thursday. They scuttled the opportunity to grab one of the two slots to African Club Championships tentatively fixed for Accra, Ghana later in the year.

“Firstly I am happy for Mikel to have broken the jinx of scoring for his club Chelsea and I hope this will propel him to get in more goals for his Club and Nigeria too”, Siasia told NationSport.

The former Eagles’ boss also offered this advice to Mikel “There is no doubting the fact that Mikel is a talented footballer who has the quality to be a super star in football but he must continue to work hard and try as much as possible to join the attack. If he continues to find himself in good position to score and take his chances he could get in couple of goals for Chelsea and Nigeria”, Siasia told NationSport yesterday from IITA (International Institute of Tropical Agriculture), Ibadan where he is handling a youth football project.

ASARAWA UNITED coach, Kadiri Ikhana has stated that he is through with coaching once his tenure at the Lafia-based side is completed at the end of the season.

Striker Victor Namo scored from the penalty spot to level score for his side in the 42nd minute after the home side took the lead in the 33rd minute through top scorer, Mfon Udoh.

“I won’t be coaching any other club side in future, I think the younger coaches can take it up from where I stopped.

“Right now I’m not even coaching Nasarawa United but offering consultancy service to the side which runs out at the end of the season, so I won’t be available for any club next season.

“I told Nasarawa people that their darling club won’t go on relegation but remain in the Premier League and five matches to go I think we’re almost there confirming a

•Ikhana spot in the elite league.

“The team not only played very well today (Sunday) to deserve a point but they’re steadily improving with each game which is heart-warming to me right now.

“They ably deserved the point they picked at Akwa United, I think the point will serve as morale booster in the side next home game against 3SC,” said the former Enyimba coach to supersport.com.

The point at Akwa United has upped Nasarawa United total earning to 43 from a possible 99.

World scrabble chairman lauds Nigeria on Akpabio classics

G

ODSWILL AKPABIO International Scrabble Classics has been adjudged as the best Scrabble competition in the world, so says the Chairman of the World English Language Scrabble Players Association ( WESPA ) Mr Elie Dangoor.

In a Goodwill message addressed to the President of the Nigeria Scrabble Federation Chief Toke Aka and sent to the organisers of the Classics which enters its 7th year this Wednesday

ADVERT

in Uyo, Mr Elie Dangoor described the Classics as “prestigious.”

“The big names that are slated for this event is testimony to the stature it carries in the scrabble world. The icing on the cake is the rapprochement between the top players and the officials in charge of our beloved game in Nigeria “ he wrote.

He added that “….things are always best when every one works together, and it is important for everyone to

recognise the commitment and dedication it has taken both officials and players to bring scrabble to such great heights in Nigeria and the wider African continent. It takes two to tango and that is not less true here than anywhere else.”

The Scrabble big gun who is looking forward to his Uyo visit, ended his goodwill message by thanking Governor Godswill Akpabio “…….for keeping Scrabble in his heart and long may this continue” He prayed.

TODAY IN THE NATION

MONDAY, SEPTEMBER 23, 2013 TRUTH IN DEFENCE OF FREEDOM

VOL 8 NO 2,615

‘It is also the same mentality that is currently at play in Ibadan where the unapologetic thug called Adedibu is the toast of the PDP hierarchy - including the presidency, openly hailed as the strongman of Oyo State politics...’

SOJI OMOTUNDE

C OMMENT & D EB ATE EBA

T

HE governors were right, and the governors were not so right. They said Ngozi Okonjo-Iweala, the dame of the economy, should resign. The reason?

Nigeria’s business of Naira and kobo – well, who talks of kobo these days except on paper? - has spun out of control. Now, as the debate rang through the economic and political corridors, I saw a big elephant, a beautiful, bespectacled, often defiant elephant.

Her name is Diezani Alison-Madueke, the minister of Petroleum who would not brook a minister of state because, as an elephant, she would choke any competition out of the room and out of oil. That was why I chuckled as the governors, especially Rivers State Governor, the right honourable Rotimi Amaechi, called for the head of the dame.

When she was appointed minister of Finance, her boss Goodluck Jonathan felt, as the other elephant in the administration, Okonjo-Iweala should not be hemmed in by finance. So, he designated her, without legislative backing, the coordinating minister of the Economy. I learned that so besotted was the dame about the title that she hardly honoured any petition or request that did not invest her with that grandiloquent honour.

So, whenever anyone had a trouble with the economy, we pointed straight at the person in charge, presumably. So when the governors like the hard-charging Amaechi threw the bait, the ego of the dame of the economy could not escape.

But further investigation would show that the woman holds that position more as a cipher than in reality. That is where the first elephant in the room, the elegant one, was ignored. Alison-Madueke, who speaks to any audience with a bored, superior air of a peacock, has escaped the jibe, except for the accusation pelted at her by some politicians.

Okonjo-Iweala coordinates the economy only in part. She coordinates such areas as Customs, NIMASA, immigration, FIIRs, agriculture, power, etc. To that extent, we can say that she is a coordinating minister of the economy. But she is an outsider with regards to the jugular of the economy. That is, oil. She does not control the oil revenue.

That was the point the Delta State Governor, Dr. Emmanuel Uduaghan, made when he said all eyes should point to the pot of the Nigerian economy, that is, the NNPC. Now, Okonjo-Iweala responded to the charge for her to resign with some hauteur, echoing her former boss Obasanjo’s words: I dey kampe. I don’t think the governors who called for her to resign expected her to cave in. They knew that the woman, a sure foot in Jonathan’s administration, would not stir at the gloomy predictions of her adversaries.

So, what concerns this column is why does the coordinating minister of the Economy not own up to her limitations in the system.

Why would she not admit that, powerful as

RIPPLES ECONOMY DOING WELL SAYS OKONJO-IWEALA

Definitely, It’s doing VERY WELL...on the PAGES of NEWSPAPERS

SAM OMATSEYE

IN TOUCH

intouchsam@yahoo.com 08054501081(sms only) •NMMA Columnist of the Year

Who is the boss?

•Iweala

•Madueke

‘It is quite clear that the economy is divided into two orbits. Okonjo-Iweala holds sway in one while Madueke rules the roost in the other. But whose empire is bigger?’ she is, she has another woman even more assertive and defiant, and who enjoys better favours from the boss? Why would she not admit that, the elegant Alison-Madueke, whose office was accused of jetting around the world on a N2 billion bill, coordinates the economy more than the coordinator of the economy?

The office is important, but the person can

overwhelm the office or the office can swallow the person. In this instance, the office has half-swallowed Okonjo-Iweala. As for the elegant peacock of the oil ministry, the office is smaller than the woman who occupies it.

The thing about the oil minister that riles those who oppose her derives from her royal pretensions. Was she not the one who stopped at Ore not many years ago and wept

HARDBALL

“T

HE country that would unravel must necessarily suffer from little masked men toying with long rifles.” That is no divine injunction or a line from Machiavelli, it is a Hardball original and you may go ahead and quote it dear reader! Of course you would not be surprised I made such cast-in-bronze assertion if you are any circumspect about what has transpired in our harried polity in the past weeks. Samplers: An Archbishop was abducted in Port Harcourt, Rivers State; a prominent lawyer was snatched in Benin City, Edo State; some folks in Nasarawa State called Ombatse have been giving our security operatives sleepless nights and last Thursday, September 19, somebody by the name Kelvin who sojourns in the creeks of the Niger Delta has raised an ‘army’ against the State and has gone ahead to give us all a 60-day ultimatum. And you still think our dear country is not unraveling?

The Kelvin’s (his surname is Ibruvwe) ultimatum galled Hardball to no end. Not because of the ugly sight of rebellion he and his miserable gang presented. Did you see the Kelvin story on the front page of this paper last Thursday? It was a bold, albeit sad picture of hooded men in army camouflage uniform totting AK47 rifles. It was a gaudy terror posse complete with charms and amulets meant to scare the hell out of

at the plebian sore, the purulent series of death traps, gullies, pot holes and craters that became routine thoroughfares of fatal destiny for the poor?

Can we reconcile that lachrymose lady with the bespectacled, bored, superior, powerful supervisor of the fluid that holds the Nigerian vein? Jesus Christ walked on water while His disciples watched. Madueke catwalks on oil while most of us slip. We can call her the supermodel of the economy.

Fashion critics have noted that upscale models in the top runways of the world execute their catwalks with often serious mien. They hardly light up. The upper crust hold in their joy, they do not fall for little excitements. They have seen too many joys, too many triumphs, so much so that they have to manufacture joys and triumphs in order to gratify their own pride. So, as sociologist Thorstein Veblen notes, they create their own artificial joys. That is why we have golf, polo, country clubs, etc.

The low-brow model cannot but be excited so she smiles. She abides in the natural, and smiles and giggles sweeten the ambience of the poor. Alison-Madueke often loves the world of the ascetic face of the well-heeled.

So, how can we imagine her fix an appointment to see Okonjo-Iweala in order to brief her as the superior officer? Can anyone imagine Okonjo-Iweala summon AlisonMadueke?

It is quite clear that the economy is divided into two orbits. Okonjo-Iweala holds sway in one while Madueke rules the roost in the other. But whose empire is bigger? Of course, Madueke’s. The NNPC reports to her, and she in turn reports to the president. We can see that there is no coordination in the economy.

I wonder why the governors did not call for her to resign, although I would want both to quit, for neither of their stewardships helps us. But what is at stake at the moment is that the state governments have not had allocations in the past few months. A depleted state purse will mean many civil servants across the country, including the oilrich ones, may have problems paying their salaries. Is another strike looming? Governor Amaechi complained last week about his inability to execute major contracts as he has had to rely on internally generated revenue since July.

So, what is happening to the NNPC? If the Central Bank of Nigeria says it received $4 billion, why would NNPC report $700 million. That is why Governor Uduaghan shone his spotlight on that humungous pot.

•Hardball is not the opinion of the columnist featured above

The Kelvin ultimatum mere mortals like you and I. But Hardball was not in the least impressed. Such duplicitous bandits have been with the world from the beginning of time. They are merely seeking to have an undue advantage over everyone else in the quest for the ‘good’ life.

What impressed me about the Kelvin challenge is that his group seemingly took its photograph in front of a mass of villagers, mainly women, children, young boys and girls who looked thoroughly enamoured of the scene. It was as if to say, thank god for giving us our own militants too to protect us and ‘shoot-out’ our rights for us from Abuja. And to confirm Hardball’s grim concern, on page 2 of the newspaper under reference, an elderly woman, obviously a grand mother from Kelvin’s Kokori community, Ethiope East Local Government Area (LGA) who spoke with correspondents was quoted as saying: “We thank God for using our son, Kelvin to fight for our course (sic). He and his group are fighting for what is just, equitable and legitimate. Therefore he should not be given a bad name.”

Unless this is some kind of subterfuge hatched by desperate politicians, this Kelvin’s affair should worry President Goodluck Jonathan, it should afford all the security

chiefs a loss of face. Kelvin is reportedly a well-known kidnapping kingpin. From his ignominious trade, he has metamorphosed into what he calls Liberation Movement for the Urhobo People (LIMUP). His liberation rhetoric is well-known and surely, wellworn: his community Kokori in spite of being oil laden and having produced oil for about 50 years, is still very impoverished.

He therefore gives government 60 days to build factories, provide amenities and give jobs to the youths or all the installations kokori hosts would be blown to pieces.

What will President Jonathan do now that the country is going pieces under his watch?

Our leaders in the last few decades (Jonathan inclusive) simply refused to lead but preferring to ride on the gravy train the country has now reached a point of no return. Our LGAs have been left forlorn and bereft of governance for so long. Any group of bandits numbering just a dozen with half a dozen rifles can easily overrun any portion of our countryside. And such groups are multiplying across the country. Can President Jonathan put his foot down and reclaim the country from hoodlums or will he continue to wring his hands and dole out more amnesty ‘bribe’?

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