Tuesday 28th June 2016

CBN Kicks off OTC FX Futures as Buhari Restates Opposition to Devaluation Oil marketers mull dialogue on special FX window

Tobi Soniyi in Abuja, Goddy Egene and Obinna Chima in Lagos Despite the plaudits Nigeria has received from the local and international business

community on the removal of its currency peg and attained recorded by the Central Bank of Nigeria (CBN) yesterday in the foreign exchange (FX) market when it became the pioneer seller

on the Naira-settled Over-theCounter (OTC) FX Futures contracts on the FMDQ OTC Securities Exchange, President Muhammadu Buhari doubled down on his opposition to the devaluation of the naira,

stating that he was yet to be persuaded by its proponents.

Unmindful of the impact his statement could have on the financial markets, Buhari while breaking the Ramadan fast with members of the business

community at the State House, Abuja, insisted that he did not see any benefit that the country would derive from devaluing the naira.

Buhari, last February at the opening session of the

Africa 2016: Business for Africa, Egypt and the World at Sharm El-Sheikh, Egypt, had said he was not in support of the devaluation of the naira, Continued on page 8

Buhari: Nigerians Suffering for Past Governments' Incompetence...

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Tuesday 28 June, 2016 Vol 21. No 7733. Price: N250

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I Remain Abia Governor, Says Ikpeazu as Court Removes Him

Tobi Soniyi, Alex Enumah in Abuja and Emmanuel Ugwu in Umuahia

BREAKING FAST WITH THE BILLIONAIRE’S CLUB

L-R: Chairman, Forte Oil Plc, Mr. Femi Otedola; Vice Chairperson, Famfa Oil, Mrs. Folorunsho Alakija; President Muhammadu Buhari; Chairman, United Bank for Africa (UBA) Plc, Mr. Tony Elumelu; President, Dangote Group, Alhaji Aliko Dangote; and Chairman, Zenith Bank Plc, Mr. Jim Ovia, when the president broke the Ramadan fast with businessmen and captains of industry at the State House, Abuja… yesterday state house

Abia State Governor, Dr. Okezie Ikpeazu, has assured the people of his state that he remains their governor and shall appeal the Federal High Court ruling, which yesterday set aside his election citing his non-qualification to contest the 2015 governorship election for tax evasion as reason for his sack.

Justice Okon Abang of the Federal High Court, Abuja, Continued on page 6

Saraki, Ekweremadu Warn Their Trial is Dangerous, Poses Threat to Democracy Senate president says he's ready to go to jail, Buhari controlled by cabal President is no one's stooge, presidency responds

Tobi Soniyi, Omololu Ogunmade and Alex Enumah in Abuja Following their arraignment at an Abuja High Court yesterday on allegations of forging the Senate Standing Orders, 2015, Senate President Bukola Saraki and his deputy,

Ike Ekweremadu, in separate emotionally-laden statements both declared their innocence and excoriated the executive for using the apparatus of the state to ride roughshod over the Senate over its choice of

leadership.

Others arraigned alongside the leaders of the Senate included a former Clerk of the National Assembly, Salisu Maikasuwa, and Deputy Clerk, Benedict Efeturi. All four were

granted bail under terms spelt out by the court.

Saraki, in a statement he personally signed, said he would fight the current battles confronting him to the end and would be glad to end up

in jail rather than surrender the leadership of the Senate to the “nefarious agenda of a few individuals”.

He also claimed that there was a government within the government of

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the Muhammadu Buhari's administration, which had seized the apparatus of executive powers to pursue their nefarious agenda.

But in a swift riposte, the presidency yesterday dismissed the Senate President’s Continued on page 6

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PAGE SIX SARAKI, EKWEREMADU WARN THEIR TRIAL IS DANGEROUS, POSES THREAT TO DEMOCRACY allegation, stating that to claim Buhari was anybody’s stooge “is not only ridiculous, but also preposterous”.

Saraki accused those behind his arraignment as enemies who want to desecrate the Senate and subvert democracy.

“I will remain true and committed to the responsibilities that my citizenship and my office impose on me. Without doubt, the highest of those responsibilities is the steadfast refusal to surrender to the subversion of our democracy and the desecration of the Senate.

“This is a cross I am prepared to carry. If yielding to the nefarious agenda of a few individuals who are bent on undermining our democracy and destabilising the federal government to satisfy their selfish interests is the alternative to losing my personal freedom, let the doors of jails be thrown open and I shall be a happy guest,” he said.

He proclaimed his innocence of the alleged forgery and described the charges as nothing but a violation of the principle of separation of powers as well as another desperate move in the persistent persecution of the Senate leadership.

Saraki described the action of the Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, who charged him and others to court over alleged forgery as misguided.

Justifying his claim that there was another government within the government of President Buhari, Saraki said the government had continued to chase the leaders of the Senate instead of addressing the myriad of crises confronting the nation.

“Today, we the leaders of the Nigerian Senate reiterate our innocence against the charges filed by the Attorney General of the Federal Government of Nigeria at the Federal Capital Territory (FCT) High Court on the allegations of forgery of

the Senate Standing Rules document.

“In our view, the charges filed by the Attorney General represent a violation of the principle of the separation of powers between the executive branch and the legislative branch as enshrined in our constitution.

“Furthermore, it is farcical to allege that a criminal act occurred during Senate procedural actions and the mere suggestion demonstrates a desperate overreach by the office of the Attorney General.

“These trumped up charges are only another phase in the relentless persecution of the leadership of the Senate.

“This misguided action by the Attorney General begs the question, how does this promote the public interest and benefit the nation? At a time when the whole of government should be working together to meet Nigeria’s many challenges, we are once again distracted by the executive branch’s inability to move beyond a leadership election among Senate peers. It was not an election of Senate peers and executive branch participants.

“Over the past year, the Senate has worked to foster good relations with the executive branch. It is in all of our collective interests to put aside divisions and get on with the nation’s business.

“We risk alienating and losing the support of the very people who have entrusted their national leaders to seek new and creative ways to promote a secure and prosperous Nigeria.

“As leaders and patriots, it is time to rise above partisanship and to move forward together.

“However, it has become clear that there is now a government within the government of President Buhari which has seized the apparatus of executive powers to pursue their nefarious agenda.

“This latest onslaught on the legislature represents a clear and present danger to the

democracy Nigerians fought hard to win and preserve.

The suit filed on behalf of the federal government suggests that perhaps some forces in the Federal Republic have not fully embraced the fact that the Senate’s rules and procedures govern how the legislative body adjudicates and resolves its own disputes.

“Let it be abundantly clear, both as a citizen and as a foremost legislator, I will continue to rise above all the persecution and distraction that have been visited on me.

“In the words of Martin Luther King Junior, ‘The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at a time of challenge and controversy’,” Saraki said.

In another statement, Ekweremadu advised those in power not to use the law as an instrument to “bludgeon innocent citizens into submitting to the untamed wishes and caprices of witch-hunters”.

Speaking after his arraignment yesterday, the Deputy Senate President expressed confidence that his trial would afford Nigerians to see clearly that the charges proferred against him were “nothing but meretricious thrash”, adding that democracy was not military rule.

He said: “For me, I find great comfort in the immortal words of late Dr. Nnamdi Azikiwe who said that ‘history will vindicate the just and the wicked will not go unpunished’.”

Insisting that his trial was political and could endanger democracy, he further added: “Let us make no mistake about this: it is not Senator Ike Ekweremadu or Senator Bukola Saraki or the other accused persons that are on trial; rather the hallowed democratic principles of the separation of powers, rule of law, the legislature, and indeed democracy itself are

on a ridiculous trial.

“Mere anarchy is unleashed upon the land, but our courage must not fall apart. No condition is permanent and nothing lasts forever.”

He stated that as a lawabiding citizen and a firm believer in the rule of law and all the rights and privileges it advertises, “it is only in my place not to commit a crime, but way out of my reach not to be accused of one, especially when the instruments of power become apparatuses for oppression of the innocent and voices of opposition”.

He added: “Indeed, I, in no way or fashion claim to be above the law, just that I believe that the law should not be used as an instrument to bludgeon innocent citizens into submitting to the untamed wishes and caprices of witchhunters.

“However, I put my trust in God, the court, and the overwhelming solidarity of the good people of Nigeria.

When the dust settles, Nigerians will see clearly that this charge is nothing but meretricious thrash. Time, occasions, and provocations like this will teach their own lessons.

“I hope that one chief lesson will be that democracy differs markedly from military rule and that public officers should never subvert the foundations of democracy by prioritising the rule of man over the rule of law.”

However, in reaction to Saraki’s allegation that there was a government within the administration, the president’s media aide, Mr. Femi Adesina, said the Senate President’s claim would have been worth its while if it had been backed with more information.

Adesina, in a statement, said: “If he had proceeded to identify those who constitute the ‘government within the government’, it would have taken the issue beyond the realm of fiction and mere conjecture.

“But as it stands, the allegation is not even worth the paper on which it was written, as anybody can wake from troubled sleep, and say anything.”

Adesina said it was within the constitutional powers of the AGF as the Chief Law Officer of state to determine who had infringed upon the law, and who had not.

He pointed out that: “Pretending to carry an imaginary cross is mere obfuscation, if indeed, a criminal act has been committed. But we leave the courts to judge.

“To claim that President Muhammadu Buhari is anybody’s stooge is not only ridiculous, but also preposterous. It is not in the character of our president.”

Earlier yesterday, Saraki, Ekweremadu, Maikasuwa and Efeturi were granted bail

by Justice Yusuf Halilu of an Abuja High Court.

They were arraigned on a two-count charge of forgery and conspiracy to commit forgery.

All the accused persons pleaded not guilty to the charges and were consequently admitted to bail while trial was adjourned to July 11.

The four defendants were put on trial by the federal government on the allegation of forging the Senate rules used on June 9 last year to conduct the elections through which Saraki and Ekwerenmadu emerged Senate President and Deputy Senate President, respectively.

Shortly after the charges were read to them, they pleaded not guilty, prompting their lawyers Mr. Ikechukwu Ezechukwu (SAN) for Maikasuwa, Mahmud Magaji (SAN) for Efeturi, Paul Erokoro (SAN) for Saraki and Joseph Daudu (SAN) for Ekwerenmadu, to move applications for bail for the defendants.

Justice Halilu, after taking arguments from the counsel, admitted all of them to bail with two sureties each who must be Nigerians, male or

female, and who must have landed properties either in Maitama, Asokoro, Wuse or Apo Legislative Quarters to be able to qualify to stand as sureties in the matter.

The judge, in his ruling, held that Sections 35 and 36 of the 1999 Constitution presumed the defendants innocent of the charges preferred against them and that it was normal and natural for them to be allowed on bail so as to prepare for their defence.

The judge took judicial notice of the positions of the defendants, adding that there was nothing by way of evidence to suggest that they would jump bail if allowed to go home.

Justice Halilu noted that the essence of bail was for the defendants, who were presumed innocent by law, to ensure their attendance in court throughout their trial and that the Administration of Criminal Justice Act (ACJA) also lends support for bail for any Nigerian accused of bailable offences as in the instant case.

The judge however said that in the event that any of the defendants is unable to comply with the bail conditions, they should be remanded in Kuje Prison pending the time they would meet the bail conditions.

By press time, Maikasuwa had complied with the bail conditions and had left the court premises.

The Senate President and his deputy obviously had no difficulties fulfilling the bail conditions, but chose to wait for the other accused persons to perfect their bail.

Earlier, counsel to the federal government, who is also the Director of Public Prosecutions of the Federation (DPPF), Mr. Mohammed Diri, had told the court that he had no opposition to Saraki’s bail on the grounds that he was the President of the Senate and did not want to cripple the activities of the

But in a swift reaction, the governor called on the people of Abia not to panic, saying he remained the state governor.

In a statement by his Chief Press Secretary, Mr. Enyinnaya Appolos, the governor called on residents of the state to remain calm over the judgment.

Ikpeazu, who said that he had faith in the judiciary and rule of law, added that he would appeal the ruling as he had instructed his lawyers to file an appeal immediately against the judgment removing him.

The governor stated that as an appointee of the Abia State Government from 2011 to 2014, when he served as the General Manager, Abia State Passengers Integrated Manifest and Safety Scheme (ASPIMSS), and first Deputy General Manager, Abia State Environmental Protection Agency (ASEPA), Aba and its environs respectively, and before his resignation in October 2014 to contest the governorship election in the state, within the period his taxes were deducted at source, and when he had need of his tax clearance in 2014, he applied to the Abia State Board of Internal Revenue, and was duly issued with his tax receipts for the period in question.

He maintained that he remained the governor of the state according to law and would await the final determination of the matter

by the appellate court.

In its reaction, the ruling PDP said that it was unfazed by the court judgment, adding that the ruling had changed nothing since it would be challenged.

Speaking in a phone interview, the state publicity secretary of PDP, Chief Don Ubani, said that the party strongly believed that Ikpeazu “is eminently qualified” to be governor, adding that the party would give him all the needed support to exhaust all available judicial processes to get justice.

However, an uneasy calm fell over the state following the judgment.

Meanwhile, the campaign office of Ogah burst into life as supporters thronged the premises located along Umuwaya Road, Umuahia, to celebrate the court judgment.

The administrative manager of the office, Wisdom Maduforo, said the judgment was long awaited, describing it as a “victory for democracy”.

Two members of the PDP had accused Ikpeazu of failing to pay personal income tax as and when due for the years 2010 and 2011 in line with Section 24(f) of the 1999 Constitution, which states that “it shall be the duty of every citizen to … declare his income honestly to appropriate and lawful agencies and pay his tax promptly”.

Subsequently, a lawsuit was instituted at the Federal High

Court, Abuja in December in 2014, by two individuals, Obasi Eke and Chukwuemeka Mba, who had asked the PDP and INEC to disqualify Ikpeazu from contesting the governorship election.

The plaintiffs contended that Ikpeazu was not fit and proper, having failed to pay his personal income tax for two years in line with the demands of the constitution.

They also asked for an order barring the PDP from presenting Ikpeazu as their candidate for governor in the 2015 election.

Continued on page 8

I REMAIN ABIA GOVERNOR, SAYS IKPEAZU AS COURT REMOVES HIM who delivered the judgment, also ordered the Independent National Electoral Commission (INEC) to issue a certificate of return to Uche Samson Ogah, a member of the Peoples Democratic Party (PDP), who contested the party’s primary that produced the governor.

Justice Abang gave the verdict in a ruling he delivered on a pre-election matter challenging the emergence of Ikpeazu as the standardbearer of the PDP in the 2015 gubernatorial election in Abia and ordered Ikpeazu to vacate the office immediately.

He said his judgment was based on the Supreme Court decision in the case of Obi v INEC and Amaechi v INEC. The judge held: “That to give effect to the judgment of this court, the plaintiff, Dr. Samson Ogah, the candidate of the PDP in the 2015 gubernatorial election in Abia, is the person entitled to the certificate of return in the election for the office of governor of Abia State of Nigeria in the election held in April 2015.

“It is hereby ordered that INEC, the third defendant, should immediately issue a certificate of return to the plaintiff, Dr. Samson Ogah, as governor of Abia State in the election held in 2015 and restore to him all the entitlements as the elected governor of Abia.

“Dr. Okezie Ikpeazu is hereby ordered to vacate office as governor of Abia

immediately relying on the decision of the Supreme Court in INEC vs Obi.” In the more than two-hour judgment, Justice Abang said the submission of a tax clearance certificate and income tax receipts by Ikpeazu was unknown to the law.

According to him, the 2011 tax clearance certificate and income tax receipts submitted to INEC before the 2014 PDP primary contained false information.

“Going by the second defendant’s appointment letter, as General Manager Abia Passenger Integrated Scheme, with effect from July 18, 2011 with the amount payable as salaries and entitlement clearly spelt out.

“Going by the second defendant’s appointment letter, the second defendant would have worked for Abia Passenger Integrated Scheme for five months, 12 days.

“The earnings of the second defendant, based on the letter of appointment by single calculation in 2011 for five months, 12 days is N493 or N546,669 if not assigned a government vehicle.

“The tax payment submitted by the second defendant didn’t reflect this figure,” he said.

The judge argued that the tax certificate indicated the gross earnings of the second defendant for 2011 to be N1.135 million and the income tax was assessed on this figure.

He disclosed further that

the date on the tax receipt filed by the second defendant was on a Saturday, adding that Saturday, even in Abia, is a public holiday.

The judge pointed out that Ikpeazu did not file his tax clearance in 2011, 2012 and 2013, and that all payments he made preceding the 2014 primary were made in one day and not as and when due.

In his view, he held that Ikpeazu perjured by lying under oath when he said that he had fulfilled all the requirements to contest the 2015 governorship election.

Based on these, the court ruled that Ikpeazu was not qualified to be the candidate of the PDP in the primary of 2014 and was also not qualified to be fielded as the candidate for the 2015 election.

Justice Abang said the plaintiff was the eligible or qualified candidate to contest as the candidate of the PDP for the 2015 election and his name should be forwarded to INEC as the PDP candidate.

He held that the second defendant did not win the PDP primary, as he was not eligible or qualified to contest and that it was the plaintiff that won.

The court further declared that Ikpeazu was guilty of tax evasion and was therefore unqualified to have contested the 2015 governorship election in the state.

The court also awarded N100,000 as costs in favour of the plaintiff.

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NEWS SARAKI, EKWEREMADU WARN THEIR TRIAL IS DANGEROUS, POSES THREAT TO DEMOCRACY

Senate.

Diri, however, vehemently opposed Ekwerenmadu, Maikasuwa and Efeturi’s bail on the grounds that they were likely to evade trial, having allegedly evaded the service of the charges preferred against them.

The prosecution told the court that if convicted, the three defendants were likely to be jailed for 14 years and that because of the gravity of the punishment, the court should be cautious in granting them bail.

Erokoro, while moving a bail application for Saraki, told the court that apart from the charges, Saraki’s name was never mentioned, either in the proof of evidence or in the police report, adding that he had not in any way been linked to the alleged offence of conspiracy and forgery.

Erokoro further argued that no attempt was made by the prosecution to serve Saraki with the charge in question as required by law and that Saraki has been standing trial before the Code of Conduct Tribunal (CCT) on other charges for almost a year and had never absented himself once at the tribunal.

He urged the court to grant Saraki bail on self-recognition or under liberal terms because as the Senate President, he was

too big to run away in order to evade trial.

However, Chief Daudu (SAN), who was representing Ekwerenmadu, urged the court to note that the DPPF had no objection to the other three defendants on the grounds that they were charged with the same offence as Saraki.

Daudu told the court that he understood the political language of the DPPF on Ekwerenmadu, adding however that “what is good for the goose is also good for the gander”.

He also dismissed the insinuation by the prosecution that the three other defendants evaded service of the summons, adding that there was no affidavit of evidence to that effect before the court and that the insinuation should be regarded as mere speculation.

Other lawyers argued along the same lines with Daudu in their submissions for the bail of their clients.

The trial attracted 30 senators, dozens of reporters and supporters from across the country.

Owing to the multitude that turned up for the arraignment, the courtroom was overcrowded as supporters and journalists struggled to follow the trial.

At some point, the judge was forced to adjourn so that the security personnel could empty

the courtroom of the crowd that had turned up.

Seeing that the senators who had accompanied Saraki and

Ekweremadu were not willing to budge, the police turned

on reporters asking them to leave the courtroom.

SENATE LEADERSHIP ON TRIAL

Deputy Senate President Ike Ekweremadu (in red and white cap) and Senate President Bukola Saraki (in white cap), surrounded by their lawyers, senators and policemen, when they were entering the High Court for their arraignment on allegations of forging the Senate Standing Orders, 2015, yesterday in Abuja

CBN KICKS OFF OTC FX FUTURES AS BUHARI RESTATES OPPOSITION TO DEVALUATION saying Nigeria, which is not an exporting nation, would be worst hit if the local currency was devalued.

Also in March, in Kenya, while addressing Nigerians in that country, he said he won’t “kill the naira”. The presidency had also issued statements denouncing devaluation.

However, the public was led to believe that the president had softened his stance, when he endorsed the CBN’s decision to introduce a flexible FX regime, which saw the naira fall by over 45 per cent on the spot market last week when the local currency was floated.

But at the breaking of the Ramadan fast dinner with the business executives yesterday, Buhari asked: “How much benefit have we derived from the naira devaluation in the past?

“I don’t like the returns I get from the CBN because that coupled with the demand that let us devalue the naria.

In August 1985 the naira was N1.30 to a dollar but now you need N300 or N350 to a dollar.

What do we derive from that?

“How much benefit can we derive from this ruthless devaluation of the naira? I’m not an economist, neither am I a businessman, but I fail to appreciate what the economic rational is.

“What has happened to us now is that we have maneuvered ourselves into a mono-economy which led to the collapse we are seeing now.”

The president told his audience that the responsibility was on their shoulders to help get the economy out of the woods and generate jobs for the unemployed.

“A lot of responsibilities now fall on your shoulders. You have a lot of investments, a lot of people you can employ.”

Buhari said as part of plans to diversify the economy, 13 states had been identified that could produce rice that would feed the nation in 18 months.

The president said it was disappointing that Nigeria imported things like tomato, rice and wheat, among others, that can be produced in the country.

Giving a vote of thanks

on behalf of the group, the Chairman of Unilever, Kola Jamodu pledged the support of the business community to the Buhari administration as it strives to take the Nigerian economy out of the woods.

He said: “We are with you as you strive to reposition the Nigerian economy. We are very much in support of your move to diversify the economy.

“I have the mandate of the group that we will give you all the support, because if the economy is in disarray, the private sector cannot survive.”

Among those who attended the dinner were the President of Dangote Group, Aliko Dangote; Chairman of United Bank for Africa (UBA) Plc, Tony Elumelu; Chairman of Forte Oil Plc, Femi Otedola; Chief Executive Officer of Oando Plc, Wale Tinubu; Chairman of Zenith Bank Plc, Jim Ovia; Chairman of Jaiz Bank, Umar Mutallab; and Vice Chairperson of Famfa Oil, Mrs, Folorunsho Alakija, among others.

Meanwhile, the CBN had in its guidelines for the OTC FX Futures trading stated that it would kick off the market by acting as the seller of OTC FX Futures contracts for defined tenors of 1-month, 2-months, 3-months, 6-months, 9-months, 12-months, 18-months and 24-months.

To this end, the CBN yesterday sold naira-settled OTC FX Futures contracts of non-standardised amounts for different tenors from one month through to 12 months which will settle on bespoke maturity dates, providing liquidity in the product that will enable corporate treasurers effectively and efficiently manage their FX risk.

At the end of trading yesterday, OTC FX Futures rates of N/$ July 2016 (1-month) stood at N279/$1; the N/$Aug 2016 (2-months) rate at N277/$1; N/$ September 2016 rate at N275/$1; October 2016 – N267/$1; November 2016 – N260/ $1; and December 2016 – N250/$1.

Also, the OTC FX Futures rate for January 2017 was N243/$1; February 2017 – N236/$1; April 2017 – N210/$1; May 2017 – N230/$1 and June

2017 at N225/$1.

The OTC FX Futures comes exactly one week after the twoway quote trading commenced in the FX market.

Speaking during the unveiling of the market, Managing Director/CEO of FMDQ, Mr. Bola Onadele, said the naira-settled OTC FX Futures product was a major milestone in the evolution of Nigerian financial markets.

“The futures market is an opportunity to transform risk into certainty - a major paradigm shift in the financial markets landscape.

This innovation provides opportunities for government, businesses, pension fund administrators, investors, individuals, etc., to hedge (not speculate), cope with exchange rate risk.

“It also affords the CBN a greater opportunity to manage exchange rate volatility, thus achieving greater market confidence, liquidity, improvement in business planning, job security, employment, better allocation of resources, global competitiveness of the Nigerian financial markets, and all in all, a thriving economy,” Onadele said.

In order to ensure credibility of the contracts, especially at maturity, the spot FX rate will be the FMDQ spot FX rate benchmark.

Onadele pointed out that the naira-settled OTC FX Futures product, whilst it is of tremendous benefit to Nigerian corporates, was equally of immense importance and advantage to, among others, the CBN, the Nigerian FX market, and the nation’s economy as a whole.

The OTC FX Futures market will serve to minimise the disequilibrium in the spot FX market and cause the rate to moderate; attract significant capital flows to the Nigerian fixed income and equity markets; and achieve exchange rate stability.

With this, there will be no need to front-load FX requirements, which puts immense pressure on and distorts the spot FX rate.

Also, corporate treasurers are

better able to make judgments on when to access the spot FX market, managing more effectively, their liquidity positions. It also makes it easier for dollar demand by end-users to be staggered appropriately, as there will be no requirement for panic-buying as end users are guaranteed a fixed rate for their FX needs when required.

CBN Governor, Mr. Godwin Emefiele, who was represented by his Special Adviser on Financial Markets, Mr. Emmanuel Ukeje, said the central bank remained steadfast in its purpose to position the Nigerian FX market to be competitive, transparent, liquid and diversified, thereby ensuring the requisite fundamentals that make for a thriving economy.

“The launch of the first Naira-settled OTC FX Futures contracts demonstrate this intent in a significant way, and I am honoured that the CBN is able to pave the way for what I believe will be an important innovation in Nigeria’s financial markets,” the CBN governor said.

On her part, FMDQ Chairman and CBN Deputy Governor (Economic Policy), Dr. Sarah Alade, said: “Today, the Nigeria’s financial market is celebrating a significant milestone, as the CBN launches its first set of OTC FX Futures quotes on the FMDQ OTC Securities Exchange.

“This innovative product will bring liquidity, transparency, price formation and diversification into the FX market, making the market globally competitive.

“FMDQ, the market organiser and the OTC FX Futures exchange, in collaboration with the CBN and other stakeholders, are adequately equipped to deliver the needed transformation in the Nigerian financial market.

“I am very proud to be part of these two institutions that made this day possible.”

The President, Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede, commended the CBN for the initiative, saying that it would enthrone transparency in the market.

“History has proven me right

that market-based systems are the most efficient in resource allocation. Platforms like this represent our future and Nigerian financial markets are taking a big leap,” the former Access Bank boss said.

Also, a board member of the FMDQ and Country Treasurer, Citibank, Mr. Bayo Adeyemo, said the OTC FX Futures would help improve confidence in the FX market.

“This would help improve the integrity of the market and minimise the risk of doing transactions. It means that as market participants, we would continue to improve and educate ourselves on developments in the market,” Adeyemo added.

On the interbank FX spot market, the naira closed at N281.49 to a dollar as the central bank continued to intervene in its bid to stabilise the market and attract FX liquidity. The market traded a total volume of $32 million before it closed.

On the parallel market, however, the naira closed at N351/$1, weaker than N345/$1 at which it sold on Saturday.

But as the CBN kicked off trading on the OTC FX Futures market, there were indications yesterday that petroleum marketers in the country may initiate discussions with it for the creation a special window to sell foreign exchange (FX) to them at the previous official rate of N197-199 to the dollar.

The move is to enable the oil marketers cover their open trade positions.

Another option being considered by the oil marketers is to meet the Finance Ministry to provide naira for them to buy FX at the prevailing rate.

Renaissance Capital Limited, a financial advisory firm, disclosed this in a report titled: “Nigerian Banks -Life after ’40” which was released yesterday.

According to the report, the sharp move to N280/$, implied FX differential losses for petroleum marketers, some of which, “we understand from our discussions with the banks, declined to be locked into forward contracts”.

As a result of this, the report anticipates non-performing loan

(NPL) pressure for banks, on the back of a weaker naira.

“Prior to the depreciation, the backlog of petroleum marketers’ FX demand was estimated by one of the banks at $2 billion; at a N285/$ exchange rate, this implies an FX loss of N170bn/$596 million. We think resolving this issue will be critical to help avoid another round of fuel queues and sharp impairment growth for the banks.

“In some cases, particularly for the larger operators, we could see the banks restructure the repayment terms over a longer period of time to allow the marketers to trade out their losses.

“For banks that have sizeable FX NPLs, depreciation could hurt their NPL ratios. Had they been holding the requisite provisions on these NPLs in naira, that would put significant pressure on their provisions and coverage ratios, as they need to set aside more naira to maintain coverage ratios at the pre-depreciation level.

“For the banks that held the provisions in dollars, these dollar provisions would naturally inflate at a weaker exchange rate, but the banks do not need to set aside real naira in order to maintain coverage ratios,” it added.

Based on feedback from management, the report pointed out that FBN Holdings and Diamond Bank have the highest proportion of their NPL books in foreign currency – at 56 per cent and 45-50 per cent, respectively – with Diamond Bank mentioning that it holds its provisions in naira.

These sizable FX NPLs, Rencap stated were a source of concern for them.

“But, unlike Diamond Bank, FBN Holdings has significant FX long positions that should help it to partly offset the impact of some of these asset quality challenges.

“While banks with a larger naira NPL book face less of a problem in this regard, we expect prudence to lead to an increase in collective impairments, as weak macro conditions put a strain on the performance of their loans,” it added.

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NEWS

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

Adeosun: Nigeria’s Economic Growth Rests on Financial Discipline, Others Says states have greater role to play in economic diversification

Ndubuisi Francis in Abuja The Minister of Finance, Mrs. Kemi Adeosun, yesterday said if Nigeria was to achieve sustainable economic growth, it needed a planned approach to financial discipline, targeted investment and economic diversification.

Adeosun also said state governments in the country have key roles to play in the country’s desire to diversify from being a mono-product economy. She stated at a Channels Television programme, The Sunrise, which THISDAY monitored in Abuja that the government had opted to build its economic plan for the country on financial discipline because of its longstanding mismanagement of resources.

“The government’s economic plan is strong on fiscal discipline because people know we need to get our country working. And to do that, we need to do three things: get the country’s spending in check with firm financial controls, raise money for targeted investment in much needed infrastructure and see us diversify the economy from a damaging dependence on oil,” Adeosun stated.

She said state governments have a key role in diversifying

Nigeria’s economy, adding: “We see the states as strong partners in diversifying our economy away from oil as well as getting Nigeria working again.

“This is one of the key drivers behind this administration’s fiscal sustainability plan with states. It is about improving accountability and transparency, increasing public revenue, effective expenditure, improving public financial management and managing debt sustainably.”

The minister described these measures as true reform which starts with discipline and ends with diversification of the economy.

She explained that there are 22 action points of reform which the government hopes to use to achieve key objectives which include improvement in accountability and transparency; increase in public revenue; rationalisation of public expenditure; improvement in public financial management and sustainable debt management.

Adeosun also said the financial system plan would take 18 months to fully become operational with key milestones to measure compliance.

“The objective is to ensure that states are set on a path towards fiscal sustainability

with a clear link between federal government funding and necessary reform.

“Monthly disbursements to each state will be conditional on compliance with pre-agreed FSP milestones. FSP reforms will take 18 months to fully implement, but there are key milestones within the period to measure compliance.

“The states have agreed and endorsed this approach. It is also a path to supporting and increasing productivity and diversification of states economies, such as in agriculture, increasing food security and opportunities for exports,” she added.

The minister equally said 35 states have applied to the federal government’s loan and are in the process of submitting the required documentation which are being reviewed.

According to her, there have been erroneous claims that only seven or five states have met the government’s conditions. She said this was factually wrong.

“Diversification of the economy will increase when each state starts to increase their Internally Generated Revenue (IGR); this will create local jobs and expand wealth within the states.

“The economic blueprint is about putting in place the financial pillars to enable states work effectively with the federal government, also as recipients of infrastructure investment.

“Getting this right will enable states to be critical economic drivers for prosperity and pillars of professional probity,” she stated.

The minister also spoke on the decision of her ministry

not to reinstate special bonus and overtime payments paid to civil servants in 2013 and 2014, saying: “This is part of the same clear goal which is to ensure fiscal discipline.

“We recognise the value of our staff and have made sure salaries are paid and we’ve worked hard to avoid redundancies. Although, I understand the disappointment some staff may have, any special payments wouldn’t be appropriate and there simply aren’t any provisions to pay out the N 1.2 billion. We need to return fiscal discipline not just to the Ministry of Finance but to every arm of government.

“Any delayed legitimate overtime payments will be paid. The Director of Finance Administration will address these and ensure that they

are paid. Staff will get what they are legally entitled to.” On the new foreign exchange policy, the minister said: “We are happy with the new FX policy, this was the missing link between monetary and fiscal policy and we are happy that it is now in place. It is supply and demand drivers.”

On policies to support large manufacturers, she stated that: “It is not about only one policy but a framework of policies to ensure competitiveness both for local consumption and for exports. This would include looking into tariffs, customs as well as power.”

She also confirmed that disbursements in YouWIN have commenced but there was a serious need to reform the YouWIN programme to suit present Nigeria.

Militants Attack Ogun Deputy Gov’s Convoy Sheriff Balogun in Abeokuta Suspected militants yesterday engaged the security detail attached to the Ogun State Deputy Governor, Mrs. Yetunde Onanuga, during her inspection visit to some border communities between Ogun and Lagos which were under attack by the same militants at the weekend.

The deputy governor was accompanied by some of her cabinet members with the aim of assuring the communities that included Imushin, Elepete and Igbo-Olomu, of the commitment of the state government to provide adequate security of lives and property.

While approaching Akoka Ebute area of Ibafo, in Obafemi-Owode Local Government Area, the situation took another dimension as the suspected militants opened fire on the security operatives that accompanied the deputy governor.

Following the readiness of the militants to further launch attacks, the delegation made a u-turn from the troubled area after the deputy governor had assured the residents of the government’s commitment to their safety.

In his reaction, the Secretary to the State Governor, Mr. Taiwo Adeoluwa, expressed concern over the deteriorating security situation in the affected communities.

He therefore called for urgent attention of the federal government’s assistance.

He said the exchange of gunfire between the security operatives and the daredevil criminals in broad daylight was regrettable.

Adeoluwa said: “It is a thing of regret that things have gone so bad in our country; at this level, the teams led by the deputy governor of the state were not able to have access to a part of our state. It means that without mincing words, the federal government needs to get involved in this.

“This is something that is beyond the capacity of the police. We need military task force like the one we have in Niger Delta; it’s necessary and desirable. As we can see in Elepete, Igbo-Olomu and Imagbon, nothing can be compared with the violence here in Ibafo.”

While speaking with journalists, the Baale of Akoka Ebute, Ibafo, Chief Folorunso Balogun, said the community had been deserted.

AN AUDIENCE WITH THE PRESIDENT

R-L: President Muhammadu Buhari, Global CEO of Unilever, Mr. Paul Polman, Managing Director, Unilever Nigeria, Mr. Yaw Nsarkoh; and Chairman, Unilever Nigeria, Igwe Nnameka Alfred Achebe, after an audience with the president at the Presidential Villa in Abuja...yesterday GodwiN omoiGui

Kachikwu in China, Shops for $50bn Investment for Oil and Gas Sector Signs $8.5bn ‘potential investment’ with NORINCO Chineme Okafor in Abuja with agency report Nigeria is looking toward China to raise about $50 billion to upgrade and build new oil and gas infrastructure, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who is currently in the Asian country to hold an investment roadshow, has said.

Kachikwu, in an interview he granted to Bloomberg yesterday, said he was in the country to attract investments that would help Nigeria bridge the infrastructure gap in her

upstream; midstream and downstream petroleum sectors.

He said already, he had signed a “potential investment” upstream deal worth $8.5 billion with China North Industries Corporation (NORINCO).

NORINCO from its official website, manufactures vehicles, machinery, optical-electronic products, oil field equipment, chemicals, light industrial products, explosives and blast materials, civil and military firearms and ammunition. It is also involved in domestic civil construction projects.

“Very positive interest. A lot

of the companies are responding positively. We just came out of signing a global $8.5 billion potential investment by one of the companies, NORINCO, in the upstream business in Nigeria,” Kachikwu stated this when asked about the response of investors to his business visit.

He added: “We are beginning the major roadshow this afternoon (yesterday). We are looking to raise about $40 to $50 billion which covers the infrastructural gap that we see in Nigeria, so the interest has been enormous.”

The minister, while justifying Nigeria’s decision to turn to China for such huge investment, stated that: “The reality is that countries like Nigeria haven’t really overtime invested in covering the infrastructural gap in the oil sector, whether it is in the downstream where the pipelines are issues or the refining facilities where the refineries are a challenge, or the gas and power area where there is need for a lot more massive investment to carry the gas to the point of power and get them to export potential.

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Makarfi: Prolonged Crisis May Affect PDP in 2019 Sheriff’s faction: Why we are holding fresh governorship primary in Edo Onyebuchi Ezigbo in Abuja and Adibe Emenyonu in Benin City The Chairman of the National Caretaker Committee of the Peoples Democratic Party (PDP), Senator Ahmed Makarfi, has warned that the lingering leadership crisis in the party could have negative impact on its electoral chances if not quickly addressed.

He said though the PDP can boast of a lot of potential and electoral value, allowing the intra-party dispute to fester would be detrimental to the fortunes of the party in 2019.

Speaking while receiving 24 state chairmen of the party in Abuja who came on a solidarity visit, Makarfi advised the former national chairman, Senator Ali Modu Sheriff, to embrace dialogue and not constitute an obstacle to the progress of the party.

“It is unfortunate what is happening but equally it is good in the sense that PDP is alive, PDP is potentially a party people love and is party like a government in waiting. If it is not worth anything nobody will struggle over it. But we must not over-stretch this fact for too long because this will be injurious to the party and can affect the fortunes of the party in the long run, not only in

our attempt to retain the states we have but also winning the states we lost and capturing power at the centre,” he said.

Makarfi said the caretaker committee was appointed to chat a way forward for the party and not to witch haunt anybody.

On the solidarity visit by state chairmen of the PDP, Makarfi said the party is still one family, adding that contrary to insinuations that his committee is pursuing an interest, none of the committee members have any plan to straying beyond their mandate.

He explained the absence of some state chairmen, saying that six of them could not come due genuine excuses while seven states were yet to conclude their congresses and as such have no valid state executive.

“We in the caretaker committee we are not here to witch hunt, we are not set up in order to go after anybody.

We are not set up in order to dissolving this or that. If there are problems we can sit down and resolve then we can sit down as a family and resolve it.

“We reject the insinuation that we are here for feather political interest. We are only here to facilitate peaceful reconciliation and to create a level playground and to

organise national convention.

“The problems that will be still there, after the national convention, those elected will have sufficient time to handle them. We believe that if we work together the issue will be handle peaceful. I am impressed by your tone of presentation as you did not malign anybody or use any disrespectful language,” he said. Speaking on behalf of 24 state chairmen of the PDP, the chairman of the party in the Federal Capital (FCT), Yusuf Suleeiman said they are solidly behind the national caretaker committee led by Makarfi.

He said the chairmen were using the opportunity to appeal to Sheriff and others with him to accept the decisions of the Port Harcourt convention of May 21.

“In view of the above, we as state chairmen wish to aver that the decisions of the may 21 convention on May 21. While we appreciate the enormous services and contributions of Sheriff during his tenure in office, we wish to appeal to him to accept the decisions of the Port Harcourt convention

of May 21, 2016 which was convened by NEC under his leadership, believing that other opportunities may arrived in the future for him to server the party in great capacity.”

The Secretary of the caretaker committee, Senator Ben Obi commended the state chairmen for their resolutions.

He assured them that the caretaker committee was interested and working for the return of the party as one family. According to him, the committee was not interested in contesting for any position during the next convention and is ready to make scarifies to ensure that peace returns to the PDP very soon with the election of substantive national officers.

About 24 state chairmen of PDP came on the visit including Paul A. Ekpo (Akwa Ibom), Kingsley Esiso (Delta), Hon. Cleophas Moses (Bayelsa), Chief Iyiolu Oyedapo (Kwara) John Ilodu Ngbede (Benue), Hamza Koshe Akuyam (Bauchi), Tanko Beji (Niger), Hon. Salisu Yusuf Majigiri (Katsina), Salihu Mahmoud

(Jigawa), Yomi Akinfemiwa (Ondo), Abdulraham Bobboi (Adamawa).

Others were Mr. S.O. Uhuntu (Kogi), Mr. G. Oguntuase, (Ekiti), Onyekadu Nnabuenyi (Ebonyi), Felix Hassan Hyat (Kaduna), Johnson Enuigbo (Abia), Hon. Augustine Nnamani (Enugu), Hon. Damiishi Tonson (Plateau) and Francis Orogu (Nassarawa).

Meanwhile, the chairman of the PDP governorship primary election panel for Edo State and governor of Ebonyi, Mr. Dave Umahi yesterday submitted the final report on the exercise to Makarfi.

Speaking while presenting his report, the Governor of Ebonyi State, David Umahi advised party leaders and members to continue to believe in the party.

He commended Makarfi for his mature handling of the issues.

However, the Sheriff-led faction of the PDP yesterday declared that it was going on with tomorrow’a governorship primaries of the party in the state, insisting that Pastor Osagie Ize-Iyamu emerged through

a caretaker committee that not backed by the constitution of the party.

Addressing journalists in Benin City, the newly inaugurated Caretaker Chairman of the party primary election and former chairman of the PDP in Ondo State, Ebenezer Alabi, disclosed that INEC would monitor the exercise.

Alibi, who was flanked

by Chief Edmund Zealiwe (Secretary) of the committee, asserted that the court rulings so far on the issue, gave Sheriff the powers to produce the authentic governorship candidate of the PDP in Edo State to avoid fielding a candidate who according to him, emerged “through an illegal Caretaker Committee led

by Makarfi.”

According to Alabi, “The leadership of our party under Sheriff, invoked section 31, sub section 2E of the constitution of the PDP by suspending the state executive members of the PDP in Edo State led by Chief Dan Orbih, for three months and appointing a seven-man committee to superintend the affairs of the PDP in Edo State.

Defence Minister: Buratai was Transparent about Dubai Properties Senator Iroegbu in Abuja The federal government has come in defence of the embattled Chief of Army Staff (COAS), Lt-Gen. Tukur Buratai, over his acquisition of properties in Dubai, United Arab Emirates (UAE), saying he was transparent about it.

The Minister of Defence, Brig-Gen. Muhammad Mansur Dan-Ali (rtd), gave this backing yesterday in a statement signed by his Principal General Staff Officer (PGSO), Brig-Gen. Mohammed Sani Ahmed.

Dan-Ali noted that the army chief did not hide the properties, as he declared them on more than one occasion to both the Nigerian Army and Code of Conduct Bureau (CCB).

“It is on record that Lt-Gen. Buratai has declared his assets as Commander of the MultiNational Joint Task Force and as Chief of Army Staff to the CCB. These facts are verifiable with the bureau,” he stressed.

The minister posited that the reports was deliberately released to embarrass and tarnish the image of Buratai with the ultimate aim of derailing the counter-terrorism and counterinsurgency operations in the North-east.

Dan-Ali noted that there were series of attempts in the past to soil the image of COAS by those he described

as “disgruntled and unpatriotic elements.”

He said: “The Ministry of Defence has observed with dismay the online media report of the involvement of the Chief of Army Staff and his family over ownership of property in Dubai.

“It is noteworthy that there has been series of concerted efforts in the past by the same medium and its cohorts to tarnish the image of the person of Lt-Gen. Tukur Buratai for the reason best known to them, which failed to achieve their desired ulterior motives.

“The ministry of Defence view this as an attempt by some unpatriotic and disgruntled elements to distract the leadership of the Nigerian Armed Forces from the successes of the war against terror particularly in the Northeast,” he added.

The minister said: “While appreciating the role of the media in nation building, I wishes to equally advise the media to exhibit high sense of professionalism in the discharge of their duties especially when it comes to security and defence related matters.”

He assured Nigerians that the federal government “will not harbour personalities with dubious character”, urging that “the online report should be disregarded in its entirety.”

STRATEGISING ON AFFORDABLE HOUSING

L-R: Head of Civil Service of the Federation (HoS), Mrs. Winifred Oyo-Ita Ekanem; Chairman, Urban Shelter, Alhaji Aliyu Ibrahim; and Minister of Power, Works and Housing, Mr. Babatunde Fashola, during the opening session of the Affordable Housing Summit 2016 organised by the ministry and German Development Cooperation in Abuja...yesterday

Nigerians Suffering for Past Governments’ Incompetence, Says Buhari Tobi Soniyi in Abuja President Muhammadu Buhari has said Nigeria is paying dearly for incompetence in managing the huge revenue that accrued from the sale of crude oil, particularly over the past decade, and for allowing the decay of critical infrastructure.

A statement issued by the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said the president spoke at the State House, Abuja, yesterday, while receiving the Global CEO of

Unilever, Mr. Paul Polman.

The president said his administration was working very hard to change the structure of the Nigerian economy battered by several years of mismanagement. ‘’We refused to save for the rainy day. Now the rain is beating us. No money, no savings, nothing. And we are thoroughly wet from the rains,” he said.

Buhari said Nigeria was paying the price for turning herself into a mono economy, but assured that the country would soon be able to feed

herself, and even export, with the current emphasis placed on agriculture.

He gave an assurance that the federal government would fast-track the implementation of strategies to ease doing business and attract more investors into Nigeria.

“We want to create jobs, and supporting manufacturing is one way to do it. As soon as we have stabilised our budget, I would personally be interested in the manufacturing sector, particularly in the generation of essential raw materials,” the president said.

The Chief Global CEO of Unilever said the conglomerate had been in Nigeria for 93 years, making it the oldest manufacturing concern in the country.

“Our products are more Nigerian than other Nigerian brands. Despite the economic downturn, there are opportunities to further advance our business here.

“The situation to invest and continue to invest here is very encouraging,” Polman said, adding that Unilever had invested about N15 billion in Nigeria in the past three years.

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Egbogah Urges Buhari to Incorporate NNPC’s Joint Ventures Ejiofor Alike The former Special Adviser to the late President Umaru Musa Yar’ Adua and former President Olusegun Obasanjo on Petroleum Matters, Dr. Emmanuel Egbogah, has urged President Muhammadu Buhari to approve the conversion of the existing Joint Ventures (JVs) between the Nigerian National Petroleum Corporation (NNPC) and the international oil companies (IOCs) into Incorporated Joint Ventures (IJVs) to solve the problem of federal government’s inability to provide cash calls for the JVs. THISDAY gathered that the initial Petroleum Industry Bill (PIB) submitted to the National Assembly by the President Yar’Adua administration had provided for the incorporation of the JVs to become IJVs. However, the IOCs had opposed the IJVs following concern that the NNPC, which controls the majority stake might run the incorporated companies.

But in a letter addressed to President Buhari, which was obtained by THISDAY, Egbogah insisted that only the conversion of the existing JVs to IJVs would solve the

funding challenge facing Nigeria’s oil and gas sector He noted that one of the biggest challenges facing Nigeria’s oil and gas industry has been that of funding.

“The international oil companies in the existing joint venture arrangements have consistently complained that government’s budgetary allocations for cash call purposes have often and chronically fallen short of requirements over the years, thus never permitting exploration and production developments to reach their real potential. This has negatively impacted capital expenditure requirements for increasing exploration and production levels from the existing Joint Venture fields, thus leaving the industry in a state of stagnation, thus preventing its full contribution to the national economy,” Egbogah explained.

The former presidential adviser further informed President Buhari that the cash call challenge prevented the country from attaining daily production and reserves targets of four million and 40 billion barrels, respectively by 2010.

According to him, as at January 2015 the NNPC was indebted to about $5

Osaze Osifo Foundation Splashes N1m on Six First Class Students The Osaze Osifo Educational Initiative (OOI) has presented N160,000 educational bursaries to six First Class students of the University of Lagos at its inaugural OOI Fellowship Awards, held at the Senate Chambers of the university.

The OOI is a not-for-profit organisation formed with the broad objective of nurturing young African talent by providing financial support and mentorship to African students in educational institutions across the world. The organisation was established in honour of the late Mr. Osaze Olugbemi Osifo, a firm advocate of the development of young talents and its impact on future leadership. Osaze was an alumnus of the University of Lagos and he passed away on February 29, 2012.

Through the OOI Fellowship Awards, top second year

students in engineering, social sciences and business administration faculties, stand a chance to be recognised as Fellows of the programme, to receive annual bursaries and assigned mentors for guidance and career mentorship.

In December 2015, the OOI Trust interviewed 12 finalists shortlisted from applications received from three faculties in the university, working in collaboration with the University Of Lagos’ Office of Advancement. The 6 Fellows who emerged from the highly competitive and rigorous selection process are Richard Chukkas-Prowess of the Department of Systems Engineering, Akindele Olaide of Psychology, Ismaila Mansur of Mass Communication and Fatimoju Adeshola, Isiaq Wasiu and Wahab Mustapha, the trio of which are from the Department of Economics.

billion in cash calls to its six joint venture partners –Shell, Chevron, Mobil, Total, Agip and Pan Ocean.

THISDAY however gathered that as at April 2016, NNPC’s indebtedness to the JV partners stood at $7 billion.

Egbogah noted that due to these cash call shortfalls from government, the oil and gas industry has resorted to rather expensive alternative funding (AF) approaches in financing some green field projects.

He argued that these AF approaches are short term and have not provided acceptable stable solution to the funding problem and cash call crises.

“Rather, the cash call shortfalls have steadily risen from a few hundred million to current $5 billion. JV funding is therefore an immediate challenge for which a long-term solution must be sought,” he added.

Citing Egypt, Oman and the Nigeria LNG Limited, which adopted IJVs, Egbogah insisted that a long-term solution should involve conversion of all JVs to IJVs, which can obtain loans and go to the capital market for funding.

“The IJV will be an entity incorporated under the laws of the Federal Republic of Nigeria, registered with the

Corporate Affairs Commission (CAC) of Nigeria and the incorporation process, including capitalisation and restructuring, will be carried out through negotiations with the respective international oil companies during the reform transition period,” he added.

He urged the president to ensure that all existing JVs are converted to IJVs so that they become operational no later than the 2018 budget cycle.

According to him, the realisation of the IJVs will bring to an end the perennial headache to government of funding its share of the oil and gas business through cash calls, as well as establish

more sound and profitable management of our economic resource.

Egbogah listed the benefits of IJVs to include the liberation of IJV from funding uncertainty; involvement of NNPC staff in all aspects of the operations; providing government with a better forecast of net revenue from oil and gas industry and ensuring more efficient operation by removing the layer of supervision done by NNPC as well as reducing cost of operations.

According to him, IJVs will also assure efficiency by tension created by staffing with shareholder employees.

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Shettima: NGOs Smiling to Bank on Agony of Displaced Persons FG declares health emergency in Borno James Emejo in Abuja The Borno State Governor, Kashim Shettima, has alleged that some non-governmental organisations (NGOs) are taking huge advantage of the pains of internally displaced persons (IDPs) in the state by defrauding foreign philanthropists under the pretense of trying to help victims of the Boko Haram insurgency.

Shettima stated this yesterday when he delivered a keynote address at a ‘High Level Emergency Roundtable on the Humanitarian Crisis’ in the state which was held at the Transcorp Hilton Hotel in Abuja with the attendance of Nigeria’s Minister of Health, Professor Isaac Folorunso Adewole; Permanent Secretary of the State House (the Presidency), heads of different organs of the United Nations and donor agencies including the European Union, the United States Agency for International Development (USAID), the British Department

for International Development (BDID) and other actors.

The meeting was convened

by Dr. Ayoade OlatunbosunAlakija, CEO of AOA Global, a humanitarian outfit working with the state government.

The governor spoke in support of the disclosure by the UN Humanitarian Coordinator for Nigeria, Mohammed Elmunir Safieldin, who said at the meeting that “most of the pictures of critically malnourished infants, children and some adults in circulation all over the social media since last week were those of victims recently rescued by the armed forces from Boko Haram fighters who held them hostage for years.”

Shettima alleged that some NGOs go in search of such victims and take their photographs which they share to the world, targeting unsuspecting philanthropists to part away with funds for the purpose of helping the displayed victims while the funds end up in private pockets.

“I need to open up here by saying that in the midst of credible organisations trying to help us in the state, we have seen occasional instances of some ‘business groups’ masquerading as NGOs smiling to the bank on the agony of our people.

“I do not mean to disrespect any sincere NGO but there are those I have seen, whose only interest is to go round thousands of IDPs and figure out ill and skinny looking infants, pose for the cameras with them and upload on the social media mainly to attract funding from concerned philanthropists abroad. I have seen one example where someone I wouldn’t mention simply

sent out horrible pictures of malnourished infants with a caption, DONATE. “I think these children, bad as their situation might be, deserve to be respected no matter how much we want to help them.

We must respect the dignity of post-conflict victims as much we desire to be respected as humans,” the governor said.

He also spoke about a statement issued by the Médecins Sans Frontières (MSM) otherwise called Doctors Without Borders, who said there was acute malnutrition at the IDP camp in Bama with large of scale of hundreds of deaths mostly of children.

Shettima said the MSF

didn’t put their statement in a proper context, a situation he said wasn’t quite helpful.

The meeting was dissolved into a technical session with the federal government promising an immediate health response in the state as announced by the Health Minister.

Meanwhile, the Minister of Health, Adewole, yesterday said there was currently a health emergency in the state requiring an immediate and rapid attention.

He said President Muhammadu Buhari had expressed concern over the deteriorating nutritional conditions in the state and further directed that a Rapid Response Team be as-

sembled to deal with the crisis which could claim as many as five children in every hour if not tackled.

“The kind of swift response being planned in order to address the nutritional challenges in the state would be similar to “what we did with Ebola,” the minister told THISDAY in an interview.

He added that a comprehensive plan detailing how to approach the crisis would be forwarded to the presidency soon. Adewole also said a plan that would address both moderate and severe malnutrition for about 6,000 affected children in the state was currently being developed.

INEC to Fix New Dates for Suspended Re-run Elections Why commission cannot monitor Sheriff’s primaries Onyebuchi Ezigbo in Abuja Baring any last minute change in its programme, the Independent National Electoral Commission (INEC) will on Thursday approve fresh dates for the re-run elections which it suspended due to violence, insecurity and logistic factors.

Reasons emerged yesterday why the commission had decided that its staff would not monitor another Edo State governorship primary being planned by the factional group of the Peoples Democratic Party (PDP) led by ousted National Chairman, Senator Ali Modu Sheriff.

THISDAY learnt that the commission had insisted that apart from court litigations, the Sheriff’s group did not meet the requirement of the mandatory 21-day notice to INEC before any primary election.

Regarding the outstanding re-run elections, INEC said it would review the reports of the situation in the affected states beginning from today.

INEC had pledged to conclude the suspended elections in Rivers, Imo, Kogi and Kano States not later than July 31, this year.

It said the conduct of the rerun elections would however depend on the outcome of consultations with stakeholders and security appraisals which it hopes would be concluded timeously.

THISDAY gathered yesterday from a source at the commission that decisions on the new

date for the re-run elections would be taken by Thursday after a series of meetings and consultations with stakeholders which begins today.

The INEC’s Director incharge of Voter Education and Publicity, Mr. Osaze-Uzzi, who spoke to THISDAY yesterday at the opening of a capacity training workshop for staff in the public affairs department, confirmed that INEC would meet with stakeholders to review the situation, adding the commission was ready to conclude the elections if there is conducive environment in those states.

Uzzi who spoke on the commission’s preparations for suspended re-run elections in Rivers, Imo and other states, Osaze-Uzzi said INEC is consulting with security agencies, political parties and their candidates, as well as other stakeholders on the issue.

“On our own part, INEC is prepared and ready in the areas of logistics, administrative and operational deployment to conduct the elections. But, there are factors outside INEC’s control such as conducive environment, that will determine whether INEC will go back to the states,’’ he said.

Speaking on the aim if the workshop, Deputy Director, Voter Education and Publicity of INEC, Mr. Nick Dazang, said the workshop was to review the communication strategies deployed during the 2015 general elections and improve on them ahead of 2019.

EMERGENCY MEETING

Borno State Governor, Alhaji Kashim Shettima (second right); Minister of Health, Prof. Isaac Adewole, and officlals of development agencies, at a high level emergency roundtable on the humanitarian crisis in Borno State in Abuja....yesterday

Court Strikes out Ecobank’s IPOB Mounts Campaign for Case against Honeywell Biafra Referendum Davidson Iriekpen Justice Jude Dagat of the Federal High Court in Lagos yesterday struck out the application filed

by Ecobank Nigeria Plc seeking to wind-up Honeywell and its sister company, Anchorage Leisures Limited, for abuse of court process.

Pending applications before the court include FHC/L/CS/1571/15 Ecobank v. Honeywell Group Limited and FHC/L/CS/1570/15 Ecobank v Anchorage Leisures Limited, which were the petitions for winding–up filed by Ecobank against Honeywell and Anchorage Leisures on October 16, 2015.

Ruling yesterday, Justice Dagat noted that a court faced with winding up application must first determine if the petition was brought in good faith.

According to him, Ecobank knew that Honeywell was challenging the alleged debt and had instituted a matter before Justice Mohammed

Idris of the same court, who had ruled that parties maintain status quo ante bellum.

Despite the orders, the court said Ecobank started its forum shopping by filing winding-up petitions instead of recovery of the alleged debt.

Honeywell said it had made payments to the tune of N3.5 billion as full and final payment pursuant to the agreement of July 22, 2014 by the parties.

Justice Dagat stated that since the matter pending before Justice Idris is premised on the same facts as the petition, there was an established abuse of the orders of Justice Idris regarding maintenance of status quo ante bellum. Justice Dagat further held that the matter before Justice Idris is first in time, therefore the subsequent petition by Ecobank constitutes an abuse of court process.

The court held that Ecobank’s petition was aimed at overreaching the powers of the Federal High Court in the suit before Justice Idris.

Emmanuel Ugwu in Umuahia With the successful outcome of the June 23 referendum which paved the way for Britain to withdraw its membership of the European Union (EU), the Indigenous People of Biafra (IPOB) at the weekend launched a campaign on Biafra referendum tagged BIAFREXIT. IPOB also launched a BIAFREXIT logo and urged the British government which wields enormous influence on the present Nigerian government to support Biafra referendum.

IPOB made the demand in a statement titled: ‘There must be BIAFREXIT in line with the just concluded BREXIT’ issued by its spokespersons, Mr. Emma Nmezu and Dr. Clifford Chukwuemeka Iroanya, saying that the British people have made their choice and it was now time to support the people of Biafra to do the same.

While congratulating the government and people of Britain for organising the BREXIT vote and also lauding the British government for respecting the wishes of her citizens, IPOB said it smacks of hypocrisy that the British Prime Minister, Mr. David Cameron that initiated the BREXIT vote has been propping up the Buhari‘s Government in their murderous acts of suppressing the quest by Biafrans to exit from Nigeria.

“This leaves Biafrans to ask if Cameron’s hypocrisy is because Biafrans are blacks and if black Africans are inferior to white British people?

“The British government has a historical aversion to the quest for self-determination for Biafra and supported Nigeria with every resource during the civil war.

“It is rather contemptuous attitude to the present agitation by pro-Biafra movements is a pointer that its policy on Biafra has not changed.”

T H I S D AY TUESDAY JUNE 28, 2016

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T H I S D AY • TUESDAY JUNE 28, 2016

COMMENT

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

POLITICS OF ELECTRICITY TARIFFS

I

The electricity distribution companies would do better if the entire value chain is good shape, argues Sony Anaeto

t would seem from the deliberate efforts of the Nigerian trade unions to lump the issue of new electricity tariffs approved for the electricity distribution companies (Discos) with the recent increase of fuel price to N145, that the unions have something to hide after all. This is because Nigerians are not as daft as the unions think. Indeed they now know better especially with the daily news of sabotage of oil and gas pipelines that the problem of irregular or zero electricity supply lies not with the discos. Instead it lies clearly with those that generate and transmit the electricity to the discos for onward delivery to the anxiously waiting and expectant Nigerian electricity consumers.

It is therefore unfortunate and mischievous of the unions in the power sector to vent their spleen on the discos as the culprit for poor electricity supply. The facts as the public now knows is that while the discos can be taken to task on slow metering and use of estimates, the same cannot be done on the main issue of lack of electricity and the existing poor power supply.

The obvious reason is that the discos do not exist in a vacuum but are at the receiving end of a value chain in electricity generation and transmission. It follows therefore that if the discos do not have kilowatts of electricity transmitted to them for distribution their distribution capacity is denuded, if not non-existent.

So how come the power industry trade unions, the protector of workers’ rights are deliberately portraying the discos as exploiting the Nigerian masses with the new tariffs and equating that with the highly explosive fuel price increase that the workers union had to call Nigerians out on strike, albeit unsuccessfully? Nigerians now know better and will not be led by the nose again by mischievous trade unions in any industry.

Nigerians know that the discos are owned by Nigerian investors who bought them with their hard-earned

THE DISCOS DO NOT EXIST IN A VACUUM BUT ARE AT THE RECEIVING END OF A VALUE CHAIN IN ELECTRICITY GENERATION AND TRANSMISSION

money and that the distribution function in electricity is capital intensive and highly expensive to deliver.

They know that if the discos deliver they will impact our economy for the better. Nigerians also know that electricity distribution is highly technical and it will take sometime for those who have invested in it to make any profit . We also know that as with the high prices which ushered in telecommunications when GSM phones came in, the high tariffs in electricity already approved for the discos by the regulator, the Nigerian Electricity Regulatory Commission, will also come down for our overall enjoyment and general satisfactory consumption of electricity.

It is therefore unnecessary for the power trade unions, in agitating for workers’ rights and benefits, make the tariffs approved for the discos the source of their discontent. The misleading picture of exploitation that the unions have painted of the discos on the new tariffs is simply not right. It is like giving the dog a bad name in order to hang it and that is not what the discos or the Nigerian electricity consumers deserve. Especially now that Nigerians are calling on government to stop vandalism of pipelines and tackle those involved generally.

To salvage its reputation from the failed strike on the new fuel price increase, the trade unions should refrain from lumping the protests on fuel price hike with the new electricity tariffs that NERC has approved for the discos. This is because Nigerians know that better days are ahead if the discos are allowed to function according to their legitimate mandate to deliver electricity to Nigerians and lift us out of perpetual darkness. The unions should channel their efforts at making Nigerians have electricity by asking government to galvanise its power generation and transmission capabilities to make the discos perform and deliver.

Anaeto wrote from Port Harcourt

WHERE ALEX OTTI GOT IT WRONG Joe Attueyi argues government should neither own nor run commercial enterprises

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n his latest piece in THISDAY which was essentially on leadership published on Monday, June 20, Dr Alex Otti opened a debate on Nigerian government’s ownership of purely commercial enterprises.

While his diagnosis of the problems could be considered spot-on, his conclusions are wrong. But before I share specific data, first let me share a real life story about the leadership of Nigerian public institutions and the reasons these institutions fail.

I have a senior friend who holds a PhD from one of the top universities in England and was working in the UK public education sector. He was head hunted by his state government to head the State’s Universal Basic Education Board (SUBEB).

While the pay was not comparative to what he earned in the UK, he felt that considering he had been trained on a scholarship by his state government, it was worth the sacrifice to come home in order to contribute his little quota.

With his education and experience, he went about restructuring the state SUBEB into a functional organisation. One of the changes he instituted was to streamline the book purchasing process from publishers and its distribution to state schools. He opened it to a competitive bidding process. The bid process went smoothly and the contract was awarded to the best bidder. Then he got a lesson in leadership of public enterprises in Nigeria. The CEO of the bid winner paid him a visit with a hefty kickback. He was taken aback. “You have already won the bid and I have signed the contract, why are you bringing me a bribe?” he asked.

My friend was then informed by this CEO that every bidder included a budget for such kickback. The kickback was a sort of insurance that they would at least be invited to next year’s bid. My friend reluctantly accepted the kickback, justifying it to himself that he never asked for a

bribe in the first place and that he ran a transparent process. The fact of the matter of course was that the kickback was higher than his annual salary. And once he had adjusted his standard of living to account for the kickback, he was actually anticipating next year’s kickback as part of his budgeted personal expenses!

That real life story is replicated in public institutions all over Nigeria. My senior friend could not have been better qualified as a leader of his institution.

He had the vision and the game-plan to make that vision a reality. Something else led to the organisational failure other than ‘poor leadership’. Another example: I started my working life in Nigerian National Petroleum Corporation so I have some first-hand knowledge of the institution and the quality of leaders it has had especially before the ‘one-year-one-GMD’ formula of recent years---Festus Marinho, Aret Adams, C.O. Oyibo, Funsho Kupolokun, et al. Those who worked with these gentlemen can attest that they would have made outstanding CEOs of any private sector organisation. That NNPC is what it is today is another indication that there is something other than leadership as the problem.

The fact of the matter is that publicly owned commercial enterprises fail in Nigeria primarily because of the nature of their ownership structure. We have more than 50 years of data point as proof that NO Nigerian government-owned commercial enterprise has ever proved sustainable. None! The most apparent example is NITEl/MTEL. When the President Olusegun Obasanjo administration decided to deregulate the telecom sector, our “economic patriots” went up in arms that he was about to give away our prime assets in NITEL including the very valuable assets of Nigeria Communications Satellite Ltd. In order to achieve his goals, President Obasanjo listened to these voices and

left NITEL alone. In fact, the federal government went ahead and gave a mobile telephony licence to NITEL free of charge while private sector players paid in excess of $250 million for their licenses.

Despite that quarter of a billion dollars bazaar to NITEL, its mobile telephone business is moribund. On the other hand, the private mobile telephone companies have all been successful—and most of their organisational leaders got their start in the business from NITEL! Surely, there is something other than leadership that made NITEL fail and continue to fail while the private telecom companies are succeeding.

The failure of Nigerian governmentowned commercial enterprises is entirely due to the structure of ownership and the mindset that is derived from that ownership structure. Most Nigerians, especially our leaders, believe that a publicly owned asset is a till box for meeting the personal needs of those currently in charge of that asset. If it is an airline, then there must be free tickets. If it is a refinery, there has to be allocation of petroleum products at below market prices. If it is a hotel, there must be free rooms and free food for some fat cats and hangers-on. Even if you supplant the current leadership with Bill Gates and Mike Zuckerberg, without changing the mindset arising from how we Nigerians view our publicly owned commercial enterprises then those companies would still be moribund.

I personally don’t believe in swimming against the tide. Public ownership of commercial enterprises does not work for Nigeria. Therefore, it is part of good leadership to accept that factor which you cannot change and make good use of those factors which you can affect. The focus of government in Nigeria must be on increasing regulatory capacity while leaving commercial enterprises to the private sector.

Interestingly, Dr Alex Otti is a (former)

banker, so the question is: Why doesn’t he advocate that Nigerian government invests and own commercial banks; after all, it is often argued that Nigeria is under-banked? He wouldn’t do that because those who remember the days of “tally number” will never wish that upon Nigeria again. It is the same with the refineries. There is nothing onerous, financially or operationally, about building refineries in Nigeria. The stumbling block has always been government policies (or their lack thereof). Every project is inevitably funded by a mixture of debt and equity. The equity provided by investors and the debt provided by banks and other financial institutions.

The questions are: Which investor will provide equity to support a project whose product’s price is controlled by the government? Which bank will provide debt to a project with a 24 -month cash flow time lag when it can lend the same money to fuel importers and turn around the loan with huge interest paid from “subsidy” in months? When the right policies are in place for the downstream sector of the Nigerian oil industry private sector built and managed refineries will dot the landscape. This writer is involved with one of such.

Finally I conclude by agreeing with Alex Otti that “government intervention is critical to development...in some cases, governments invest directly in the economy to provide basic infrastructure and to bridge the gap in areas that the private sector may not find very attractive. Such areas may include transport and other public utilities like pipe borne water, healthcare delivery and education.”

Outside of these exceptions, one should insist that Nigerian government stays as far away as possible from owning and running commercial enterprises.

Mr. Attueyi is Chief Executive Officer of a diversified indigenous energy group

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T H I S D AY TUESDAY JUNE28, 2016

EDITORIAL WHO NEEDS THE PEACE CORPS?

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Government should strengthen existing paramilitary outfits instead of establishing new ones

espite stiff opposition from several security agencies, especially the Nigeria Police and the Nigerian Security and Civil Defence Corps, the House of Representatives recently passed a bill to establish the Nigeria Peace Corps. The bill is now awaiting concurrence from the Senate where it has already passed second reading.

At a time of lean resources and against the background that there are already duplications in the functions of many of our security agencies, we do not see the wisdom in creating yet another cost centre of dubious national value.

The House, in adopting the report of its committee on interior, which recommended the establishment of the Nigeria Peace Corps, said the organisation would complement efforts of other security agencies and enhance youth empowerment. But the police and NSCDC have protested that legalising the Peace Corps, which has existed for 17 years, would create an unnecessary overlap of responsibilities.

Interestingly, the WHILE WE CONCEDE Interior Ministry under THAT THE LEVEL OF which it is expected to UNEMPLOYMENT IN THE be domiciled, is also COUNTRY REMAINS A BIG opposed to the idea of SOURCE OF CONCERN, institutionalising the THE ESTABLISHMENT Peace Corps. During OF PARAMILITARY the public hearing ORGANISATIONS IS on the bill sponsored NOT NECESSARILY THE

by Hon. Abdullahi ANSWER Umar Farouk, the legal adviser of the ministry, Mr. Adebola Odugbesan, put it succinctly: “The creation of the Nigeria Peace Corps is unnecessary considering the fact that its duties are vague. The corps functions as stated in the bill are already carried out by the Nigeria Police Force and other paramilitary organisations under the interior ministry.”

We share the position of the ministry as well as that of other stakeholders who worry about funding the corps at a time of national economic emergency. But justifying the

Letters to the Editor

need for institutionalising the Peace Corps, its Commandant General, Mr. Dickson Akoh, argued that its duties would include partnering with schools, secondary and tertiary, to curb examination malpractices and cultism.

He also said the corps would encourage volunteerism in the manner of the Peace Corps of America, and spelt out the manner of funding for the organisation, including government subventions. The most interesting reason however remains that it is aimed at providing employment for the increasing number of graduates who have remained unemployed and are therefore prone to crime.

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T H I S DAY

EDITOR IJEOMA NWOGWUGWU DEPUTY EDITORS BOLAJI ADEBIYI, JOSEPH USHIGIALE MANAGING DIRECTOR ENIOLA BELLO DEPUTY MANAGING DIRECTOR KAYODE KOMOLAFE CHAIRMAN EDITORIAL BOARD OLUSEGUN ADENIYI EDITOR NATION’S CAPITAL IYOBOSA UWUGIAREN

T H I S DAY N E W S PA P E R S L I M I T E D

EDITOR-IN-CHIEF/CHAIRMAN NDUKA OBAIGBENA GROUP EXECUTIVE DIRECTORS ENIOLA BELLO, KAYODE KOMOLAFE, ISRAEL IWEGBU, EMMANUEL EFENI, IJEOMA NWOGWUGWU GROUP FINANCE DIRECTOR OLUFEMI ABOROWA DIVISIONAL DIRECTORS PETER IWEGBU, FIDELIS ELEMA, MBAYILAN ANDOAKA, ANTHONY OGEDENGBE DEPUTY DIVISIONAL DIRECTOR OJOGUN VICTOR DANBOYI SNR. ASSOCIATE DIRECTOR ERIC OJEH ASSOCIATE DIRECTORS HENRY NWACHOKOR, SAHEED ADEYEMO CONTROLLERS ABIMBOLA TAIWO, UCHENNA DIBIAGWU, NDUKA MOSERI GENERAL MANAGER PATRICK EIMIUHI GROUP HEAD FEMI TOLUFASHE ART DIRECTOR OCHI OGBUAKU II DIRECTOR, PRINTING PRODUCTION CHUKS ONWUDINJO TO SEND EMAIL: first name.surname@thisdaylive.com

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

DRUG ABUSE AND ILLICIT DRUG TRAFFICKING

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rugs have been part of the human culture since the middle of the last century. Popularised in the 1960s by music and mass media, they invade all aspects of society.

It is estimated that 208 million people internationally consume illegal drugs out of which about 76.3 million struggle with alcohol use disorders contributing to 1.8 million deaths per year. In the 1980’s drug use and abuse became unprecedented problem of great concern to the global community which warrants the United Nations General Assembly in 1987 to designate June 26 of every year the International Day against Drug Abuse and Illicit Trafficking. This day serves as a reminder of the goals agreed to by member states of creating an international society free of drug abuse. It aims to raise awareness of the major problems that illicit drugs present to society and at the same time, remind youths and adults not to make the mistake of experimenting with drugs.

A drug is a substance used for medical purposes that changes the state or function of the body. On the other hand, drug abuse is a situation when drug is taken more than it is prescribed. It could be seen as the use of illicit drugs, or the abuse of prescription or over-the-counter drugs. It could further be defined as the deliberate use of chemical substances for reasons other than intended

hile we concede that the level of unemployment in the country remains a big source of concern, the establishment of paramilitary organisations is not necessarily the answer. The NSCDC itself started out under similar circumstances as a voluntary organisation before it received legal backing under President Olusegun Obasanjo. It already duplicates most of the functions of the police, and has now secured the right to bear light arms. Sadly, many of its personnel are gradually being enmeshed in the same vices the police have been associated with: extra-judicial killings, harassment of civilians and extortion, etc.

As things stand today, there are no indications that despite Akoh’s reassurance that the organisation is not interested in bearing arms, it would not begin agitation for same in the name of protecting its personnel once it becomes an official force. Yet, the questions remain: Is the National Assembly, in passing this bill, saying any individual, so inspired, should establish an organisation and seek government funding for it? Are there no other viable alternatives to reducing unemployment, such as enhancing legislation to create an environment that would encourage self-employment? What would the lawmakers do when in a few years a similar organisation comes before them to seek legal backing?

We hold the view that government should strengthen existing paramilitary outfits, rather than establish new ones. The idea behind the Nigeria Peace Corps does not make sense to us and we ask the National Assembly not to waste its time on the issue.

medical purposes and which results in physical, mental, emotional or social impairment of the user. World Health Organisation (WHO) defined substance abuse as “the harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs”.

Twenty-nine years after global declaration and effort at creating an international society free of drug abuse, the impact has not been encouraging. In Europe, recent studies among 15 and 16-year-olds suggest that use of marijuana varies from under 10% to over 40%, with the highest rates reported by teens in the Czech Republic (44%), followed by Ireland (39%), the UK (38%) and France (38%). In Spain and the United Kingdom, cocaine use among 15 to 16-year-olds is 4% to 6%. Cocaine use among young people has risen in Denmark, Italy, Spain, UK, Norway and France.

In Nigeria, even in the absence of statistics, observation of happenings on our streets will reveal that young people today are exposed earlier than ever to drugs. Substances such as alcohol, cannabis, amphetamines, among others, are now being taken frequently and in large quantities by our youth. School children now go to school with various types of drugs, ranging from local and refined alcohol, Indian hemp, ogogoro and their likes.

Rasak Musbau, Lagos State Ministry of Information and Strategy, Alausa, Lagos

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I CANNOT BE BRIBED

name and an account number of Diamond Bank were sent to me by someone who claimed to be an Inspector of Police but refused to disclose his name for security reason. He wanted me to deposit N100, 000 into the account to enable him include my name as a member of a task force that the federal government was planning to establish to assist in fishing out the bad eggs in the Nigeria Police Force.

However, the man in question told me that due to my writing and publications in the national dailies on the unbecoming activities of men of the Nigeria Police Force, some officers jointly nominated me to be one of the members of the task force. He said the people in charge were planning to remove my name and fix in someone else but if I could get N100, 000 to settle them, my name would be included.

But I told him in clear terms that I would never pay any money to any person or group in order to be chosen as a

member of any task force. He pleaded with me to pay the money in order to enable him use the money as evidence against the people who were demanding for it so that their integrity could be questioned and they would be replaced with better people that could do the job transparently, where my name could be included and my money would be refunded.

Before the call from the man in question, I had received a call from someone who did not even let me know who he was and where he was calling from, warning me to be careful that the policemen were planning to set me up and get me arrested for always writing against them. Could this be part of the policemen’s plan against me?

Before now, the police public relations officer, Benue State Command, called and accused me of being out to ridicule the police force because of my articles. He was very aggressive during the conversation with him on phone. Does that mean he is the one initiating the plans on how to set me up and get me arrested?

Awunah Pius Terwase, Mpape, Abuja

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WEEKLY PULL-OUT

‘ICC IS THE MOST TRUSTED ARBITRATION ARBITRA TRAT TRA ATION SYSTEM SYSTE SY YSTEM IN THE WORLD’

28.06.2016

Mrs. Dorothy Udeme Ufot SAN

2/DASHBOARD

28.06.2016

Self-Defence Will Only be a Successful and Complete Defence to a Charge of Murder Where the Accused Person Reacted Spontaneously to an Unprovoked Attack PAGE 3

Arbitration, Key to Foreign Investments, Says Osinbajo PAGE 4

Selection of Judges to Adjudicate on Special Crimes has been Concluded - Sagay PAGE 4

Group Condemns NYSC’s Imposition of Pre-Mobilisation Fees on Prospective Corps Members, Says It’s Illegal PAGE 4

The Late Honourable Justice Niki Tobi Through the Cases - A Tribute PAGE 5

QUOTABLES 'I don’t think any reasonable person should be demanding immunity for legislators. I don’t know anywhere else it is done. In fact, in some countries, even the President and Vice-President are not immune against corruption. Some Nigerians always want to do things in an absurd way. Nigerian public will rise against it. Every right thinking Nigerians should rise against it’.

– Chief Niyi Akintola SAN

‘The EFCC has the power to freeze the account of any person suspected to be involved in the commission of a crime. This power is not restricted to accounts of any person enjoying immunity be him a Governor or President’.

– Chief Emeka Ngige SAN

‘You Must be Ready to Pay the Price to Be Successful’ PAGE 5

The Legal Practitioner’s Stamp/Seal Policy and Legal Issues Arising Therein PAGE 6

Domestic Gas Supply - A Pipeline Dream?

PAGE 7

Transparency in Investor-State Dispute Settlement PAGE 11

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

LAW REPORT/3

Self-Defence Will Only be a Successful and Complete Defence to a Charge of Murder Where the Accused Person Reacted Spontaneously to an Unprovoked Attack

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he Law is settled that self-defence will only be a successful or complete defence to the charge of murder or manslaughter where the accused person reacted spontaneously to an unprovoked attack. The Supreme Court in the instant appeal dismissed the appeal and held that the appellant’s act in going to the deceased’s house where the fight took place, did not entitle him to the defence of self-defence to exonerate him from the conviction for the offence of manslaughter.

the appellant was in any danger or apprehension of death or grievous hurt as a result of the attack by the deceased.

He further submitted that since both the Court of Appeal and the trial court had rejected the defence of self defence raised by the Appellant, there were concurrent findings on the point which the Supreme Court ought not to disturb. He relied on AJAYI v THE STATE (2014) 10 ACLR 425 at 451 and ADEYEYE v THE STATE (2014) 10 ACLR 476 at 518.

Thereafter he contended that since the findings of the trial Court and the Court of Appeal are not perverse, the appeal should be dismissed.

FACTS On 2nd April 2002, the Appellant went to the house of Chief Monday Sedera (“the deceased”) to challenge the deceased in respect of an allegation of mismanagement of money given to the Appellant by the brother of the deceased. In the course of their argument, a fight ensued between the Appellant and the deceased. In the course of the fight, the Appellant stabbed the deceased with a knife, which later resulted in the death of the deceased. The fight was reported to the Oba and thereafter he instructed his orderly to invite the Appellant and the deceased to his palace.

The accused was subsequently charged for murder pursuant to Section 319(1) of the Criminal Code Cap 30 Vol. II of the Laws of Ondo State of Nigeria 1978 at the High Court of Ondo State, Okitipupa Judicial Division (“trial court”). During Trial, the prosecution called 7 witnesses and tendered 3 Exhibits .The case of the prosecution was that while the deceased and the orderly were on their way to the Oba’s palace the Appellant came from behind and stabbed the deceased. The Appellant gave evidence in his defence and also called one witness who was his younger brother. During trial, he sought to rely on self-defence as contained in his statement to the police and admitted as Exhibit ‘B’ and his own oral evidence.

In seeking to rely on the said defence, the Appellant admitted stabbing the deceased during the fight between him and the deceased. He thereafter claimed that the deceased and five of the deceased’s relatives attacked him, one of whom stabbed him with a knife, which he was subsequently able to retrieve.

He further stated that while he was trying to retaliate, the deceased’s relation who testified as the PW5 avoided the knife, which landed on the accused. In the course of trial, the prosecution failed to call the police orderly of the Oba who was present when the Appellant stabbed the deceased.

In its judgment delivered on 11th May 2006, the Trial Court relied on the evidence given by the prosecution that the Appellant stabbed the deceased from behind on the way to the Oba’s palace and rejected the Appellant’s defence of self defence. Thereafter, the trial court found the appellant guilty, convicted him for murder and sentenced him to death. The appellant being dissatisfied with the trial court’s judgment, appealed to the Court of Appeal, Akure Judicial Division. In the Judgment of the Court of Appeal delivered on 31st October, 2012, the Court of Appeal held that there were contradictions in the evidence of the prosecution as to where the stabbing actually took place. The Court of Appeal therefore relied on the Appellant’s evidence that the stabbing occurred in the course of the fight between the Appellant and the deceased.

Based on this fact, the Court of Appeal allowed the appeal but however held that the contradictions in the evidence of the prosecution were not fundamental to absolve the Appellant of the offence of manslaughter and substituted the conviction for murder with that of manslaughter and sentenced the Appellant to 15 years imprisonment.

The Appellant being dissatisfied with the judgment of the Court of Appeal appealed to the Supreme Court against his conviction and sentence for the offence of manslaughter. The Appellant in his brief of argument formulated the following two issues for determination: 1. Whether after finding that the prosecution's case at the trial Court was inconclusive and contradictory, the learned Justices of the Court of Appeal ought to have resolved the doubt thereby created in favour of the Appellant and discharge and acquit him rather than reduce his conviction from murder to manslaughter?

2. Whether from the evidence on record the Appellant is availed with the defence of self-defence and thereby was entitled to discharge and acquittal rather than conviction for manslaughter?"

The respondent adopted the issues for determination formulated in the Appellant’s brief of argument.

On issue one, the Appellant argued that the Court of Appeal was in error when it failed to resolve the doubt raised by the gaps it found in the prosecution's case in favour of the Appellant. The Appellant argued that the law is quite clear that where there is any inconsistency or contradiction on a material issue in the case of the prosecution, the doubt raised

COURT’S JUDGEMENT AND RATIONALE Issue One On Issue 1, the Court stated the conditions that must be satisfied to secure a conviction in murder pursuant to Section 319 (1) of the Criminal Code Cap 30 Vol II, of the laws of Ondo State of Nigeria 1978. Those conditions are that the deceased has died, that the death was caused by the accused and that the act or omission of the accused was intentional with the knowledge that death or grievous harm was its probable consequence. Thereafter the Court stated that in a charge of murder. the prosecution must prove beyond reasonable doubt that the act of the accused caused the death of the deceased and placed reliance on UGURU v THE STATE (2002) 9 NWLR (Pt. 771) 90. The Court further stated that from the evidence adduced by the prosecution through its 7 witnesses, and the 3 exhibits admitted in evidence (including the statement of the Appellant taken under caution by the police) the requirement of proof beyond reasonable doubt had been achieved in establishing that the deceased’s death was caused by the act of the Appellant stabbing him with a knife which caused injuries that later resulted in the deceased’s death.

Thereafter the Court proceeded to determine whether the circumstances under which the stabbing of the deceased by the Appellant took place disclosed the offence of murder as found by the trial court or manslaughter as found by the Court of Appeal. The court examined the evidence relied on by both courts and stated that the Court of Appeal was right in holding that the contradictions in the evidence of the prosecution were not fundamental to absolve the appellant of the offence of manslaughter. In addition, the Court stated that in the instant case where the stabbing took place in the course of a fight and in the night, the Court of Appeal was right in substituting the conviction of murder with that of manslaughter against the Appellant and sentencing him to 15 years imprisonment.

M. Mohammed, CJN

In The Supreme Court of Nigeria Holden at Abuja On Friday the 18th Day of March, 2016 Before Their Lordships Mahmud Mohammed Suleiman Galadima Olabode Rhodes-Vivour Nwali Sylvester Ngwuta Musa Dattijo Muhammad Justices, Supreme Court SC.104/2013 Between Adebiyi Famakinwa ............. Appellant And The State .......... Respondent Judgment Delivered By Mahmud Mohammed, CJN should be resolved in favour of the Appellant. He relied on STATE v DANJUMA (1997) 5 NWLR (PT.506) 512 at 528-529, OBl v THE STATE (1991) 7 NWLR (Pt. 513) 352 at 360 and IBEH v STATE (1997) 1 NWLR (Pt. 484) 632. He thereafter submitted that from the evidence on record, the Court of Appeal had found contradictions in the prosecution’s case, and because there was no other evidence from the prosecution to clarify these contradictions, the conviction of the Appellant for manslaughter should be discharged and the Court should allow the appeal and acquit the Appellant.

In response, the Respondent submitted that the doubt that was created in the prosecution’s case was because the prosecution did not resolve the question of where exactly the fight took place in the absence of the evidence of the police orderly to the Oba, who was said to be present when the Appellant stabbed the deceased. Relying on the case of ENAHORO v THE QUEEN (2007) 5 ACLR 403 at 427, the Respondent submitted that for contradictions in the evidence of the prosecution to lead to acquittal of an accused person, the contradictions must be fundamental. He thereafter contended that there was sufficient credible evidence adduced by the prosecution to support the conviction and sentence of the Appellant as substituted by the Court below and therefore urged the Court to dismiss the appeal.

On issue two, the Appellant argued that the defence of self-defence will avail an accused person who retaliated to an unprovoked attack in order to ward off the attack against him and to defend himself from further attack. He relied on UWAEKWEGBUNYA v THE STATE (2005) 23 WRN 1 AT 28 and § (1992) 1 NWLR (Pt. 217) 255. He thereafter, urged the Court to accept that he acted in self-defence and to discharge and acquit him.

The Respondent in response, submitted that both the trial Court and the Court of Appeal considered the defence of self-defence raised by the Appellant and came to the conclusion that there were no facts or evidence before the Court that suggested that

Issue Two In determining Issue 2, the Court restated the principle that the defence of self-defence, if successful, is a complete defence or answer to the charge of murder or manslaughter and relied on BARIDAM v THE STATE (1994) 1 NWLR (Pt.320) 262, KIM v THE STATE (1992) 4 NWLR (Pt.233) 17 at 49 and DURU v THE STATE (1993) 3 NWLR (Pt.28l) 283 at 291-292. The Court thereafter stated that self defence will only avail an accused person who reacted spontaneously to unprovoked attack in order to ward off the said attack against him and to defend himself from further attack. The Court relied on CHUKWU v THE STATE (1992) 1 NWLR (PT. 217) 255, DURU v THE STATE (1993) 3 NWLR (Pt. 281) 283 at 292 among a few other cases.

The Court then proceeded to apply the stated principles to the facts of the case and held that since the Appellant had gone to the house of the deceased where the fight took place, his conduct and action did not entitle him to the defence of self-defence. In addition, the Court stated that the Appellant was the aggressor and that he was not defending himself but fighting. The Court further stated that the rejection of the evidence of the Appellant on his attempt to rely on the defence of self defence by the trial court and the court of appeal are in agreement and this constitutes concurrent findings of the two courts which the Supreme Court will not ordinarily disturb and relied on MANAWA OGBODU v THE STATE (1981) 2 NWLR (Pt. 54) 20. Thereafter, the Court held that there were no exceptional reasons to interferer with the concurrent findings and dismissed the appeal for lacking in merit and thereafter affirmed the judgment of the Court of Appeal.

REPRESENTATION For the Appellant: Chinonye Edmund Obiagwu with her, Uzoma Aneto (Mrs.) For the Respondent: Dr. J.Y. Musa with Mrs. Adesola Adeyemi-Tuki (DPP Ondo State); Taiwo Olubodun – DDPP; M.O. Onyilokwu; Eko Ejembi lrko; J O. Musa and l.W. Zom. Reported by Oyinkansola Karunwi, Aluko & Oyebode, Lagos.

4/NEWS

28.06.2016

Group Condemns NYSC’s Imposition of Pre-Mobilisation Fees on Prospective Corps Members, Says It’s Illegal

L-R: Mr. Louis Mbanefo SAN, Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami SAN and President, ICC International Court of Arbitration Paris, Mr. Alexis Mourre at the 1st ICC Africa Regional Arbitration Conference held between June 19 and 21, 2016 at Eko Hotels & Suites, Lagos

Arbitration, Key to Foreign Investments, Says Osinbajo Stories by Akinwale Akintunde

The Vice President, Professor Yemi Osinbajo SAN has urged businessmen in Nigeria to embrace commercial arbitration for the desired speed in dispute resolution to attract international investors.

Professor Osinbajo SAN asserted that with a robust dispute resolution mechanism like Arbitration in place, the country will actualise her vision of becoming the next major destination for foreign direct investment.

The Vice President said this last week while declaring the 1st ICC Africa Regional Arbitration Conference open, it held between June 19 and 21, 2016 at Eko Hotels & Suites with the theme, “Arbitration and Africa: Prospects and Challenges”.

Osinbajo, was represented by the Minister of Justice and Attorney-General of the Federation, Mr Abubakar Malami SAN, who stated that the availability of dispute resolution mechanisms was a factor in all investors’ decisions.

He further stated that dispute resolution constituted a significant determinant of a country’s ranking in the ease of doing business, adding that disputes were common in the business environment.

“Every prudent society must design and constantly draw up processes through which disputes

could be resolved in an amicable manner.

“In the world of today, commercial arbitration is now recognised as a preferred method of resolving several commercial disputes.

“Arbitration is now seen as not only possessing the desired speed but also aggregating competency and often times, the relationship is tied to this process,” Osinbajo explained.

The Vice-President however, urged conference participants to take time to address the critical issues which would expand arbitration as a desired tool for dispute resolution in Nigeria.

The President, ICC Court of International Arbitration Paris, Mr. Alexis Mourre, commended Nigeria for hosting the first Africa Regional Arbitration Conference.

Mourre noted that with more engagements and interactions on arbitration, commercial practitioners would recognise arbitration; just like common law and civil laws.

According to Mourre, ICC was one of the institutions that adopted arbitration and 70 percent of the world’s arbitration come from the ICC. “Arbitration is booming in Africa. We hope that at the end of the conference, we will be seeing more arbitrators in Africa,” Mourre emphasised.

Earlier in her welcome address, the Chairperson, ICC Conference Planning Committee, Mrs. Dorothy Udeme Ufot SAN, stated

that the theme of the three-day conference, “Arbitration and Africa: Prospects and Challenges” was chosen by the Planning Committee because Africa is the next major destination for Foreign Direct Investments (FDIs).

She urged the international community to support Africa’s efforts to promote economic growth and investment.

Ufot asserted that “The investors are also interested in infrastructure, technology, agribusiness, consumer goods and manufacturing companies that would create sustained growth and create jobs and improved livelihood.”

“There is no way commercial disputes will not arise during these processes and the conference aims at setting the background for their resolution,’’ Ufot explained.

According to her, ICC Nigeria is an affiliate of the ICC Headquarters in Paris. ICC was established in 1919 in Paris, it is one of the largest business organisations in the world with over six million companies and chambers of commerce and business associates in more than 130 countries including Nigeria.

She mentioned that the conference had been taken all over the world, adding that Nigeria was grateful to host the First ICC Regional Conference.

Ufot also commended the President of ICC International for ensuring that the conference took place in Nigeria.

“All countries in Africa are

busy trying to attract foreign investments. You will agree with me that without international arbitration, there cannot be foreign investors. In any jurisdiction, arbitration is one of the viable components for attracting foreign investors,’’ she asserted.

Ufot, commended organisations that supported the Nigeria ICC Conference such as Globacom Ltd , Dangote Company, the NBA, the Nigerian Shippers’ Council, the Nigerian Ports Authority, among others.

The three-day conference attracted distinguished industry experts and Arbitrators specially selected from all over the world including resource persons across all sectors. The event also featured different sessions with lively discussions which addressed topical themes in arbitration.

Speakers at the event included President of the Nigerian Bar Association, Mr. Augustine Alegeh SAN, Chief Sena Anthony, Mr. Hassan Bello, Professor Paul Idornigie SAN, Tunde Ogunseitan, Ned Mojuetan, Kofi Mbiah, Rukia Baruti, Dr. Emilia Onyema, Jerome Finnis Sami Houerbi, Harry Matovu QC, Jimmy Kodo and Mr. Kamal Shah, among others.

Others in attendance included former Attorney General of the Federation and Minister of Justice, Chief Bayo Ojo SAN, Mrs. Funke Adekoya SAN, Chief Gabriel Olawoyin SAN and Mr. Gbenga Oyebode.

A human rights group, Citizens Advocacy Initiative for Accountability Leadership (CAIFAL) has condemned the imposition of a mandatory N3,000 call-up letter fee by National Youth Service Corps (NYSC) on prospective youth corps members, describing it as illegal and unconstitutional.

Addressing a press conference in Lagos last Wednesday, the group Chairman, Board of Trustees, Chief Abdullai Tony Dania and the Secretary, Mr. Babatunde Atobatele, alleged that NYSC in connivance with a private company, Sidmach Technologies Limited, charged a N3,000 fee to prospective corps members to print out their call-up letters before they are mobilised for the mandatory national youth service in clear contravention of its enabling laws.

CAIFAL however urged the Federal Government to urgently rescue the NYSC from the self-destructive path of the managers of the corps.

"There is no doubt that the NYSC, as it is today, needs urgent and immediate rescue from the self-destructive path the managers of this otherwise, lofty vision of our forefathers, have decided to toe", the group stated.

The human rights group also urged the Federal Government to make the fight against corruption all-inclusive by investigating the alleged violation of the NYSC Act by its officials.

“Since 2014, NYSC introduced the payment of N3,000 as fees paid by graduating Nigerian students popularly referred to as “Prospective Corps Members” (PCM), who are to be “mobilised”/“conscripted” into the one year “compulsory” and ‘mandatory’ service to their fatherland.

“The service by PCM is mandatory and compulsory.

It is a must that a PCM must be mobilised, he or She has no choice, as it is a criminal offence, under the NYSC Act, for a qualified Nigerian Youth to refuse to submit himself or herself for such mobilisation, except those exempted for been above the age limit of

30 years, and as provided in the NYSC Act. "It is also an offence for any Employer in Nigeria to employ any Nigerian Graduate who does not have the Certificate of National Service or exemption certificate, as the case may be.

“Based on the above, and by virtue of the provisions of Sections 1(1),(2)&(3)(c), 2(1) (particularly the proviso thereof), (2)&(3), 9(2), 13(1) of the National Youth Service Corps Act 1993, and Sections 6(1) and 315(1)(a)&(5)(a) of the 1999 Constitution, as amended, the inevitable conclusion is that the action of NYSC management since 2014 till date, (to charge Nigerian Young Graduates or PCM money, as a condition precedent for them to be mobilised to participate in the NYSC and to be re-deployed after been mobilised, without recourse to the enabling Act, and whereas the NYSC programme is a compulsory exercise and a scheme which gives the PCMs, no choice, as to whether they want to participate in the scheme or not, and which makes it a criminal offence under the NYSC Act 1993, if a graduate, who is not exempted, refused to be mobilised), is very wrong, improper, fraudulent, illegal, unlawful, unconstitutional, condemnable and conspicuously contradictory to the positive change and anti-corruption policies of the current Administration of President Muhammadu Buhari.

"The Management of the NYSC or any body in Nigeria for that matter cannot and ought not to charge money to mobilise Young Nigerian Graduates or the PCMs, without first amending the NYSC Act, which, statutorily requires the amendment of the Constitution of the FRN. So, the action of the Managers of the NYSC is a grave Constitutional infraction; and it is only proper that the NYSC stops or it is stopped from further collecting such money", the group stated.

CONTINUED ON PAGE 13

Selection of Judges to Adjudicate on Special Crimes has been Concluded - Sagay Chairman, Presidential Advisory Committee on Anti-corruption, Professor Itse Sagay SAN has announced that his committee has concluded plans for the selection of judges who will specifically adjudicate on special crimes such as financial crimes, kidnapping, cyber-crimes and drugs related offences.

Sagay disclosed this last Thursday, while speaking in Lagos as the Chairman of the the 2016 Lecture and Award Ceremony of the National Association of Judiciary Correspondents (NAJUC), Lagos chapter.

The lecture was themed ‘The Judiciary, Media, Anti-graft Agencies and the Fight Against

Corruption.”

The Professor of Law stated that the committee, a think tank, which provides guidance for anticorruption agencies has designed a new manual for prosecution towards achieving an effective and efficient prosecution.

“My committee has concluded the drawing up of the Special Crimes Act for judges who will be specifically selected to adjudicate special crimes such as financial crimes, kidnapping, cyber-crimes and drugs, Sagay further stated.”

He explained that the committee had made various reforms that would tremendously aid the speedy dispensation of justice of

high profile corruption cases in the country.

“We have created a new manual for prosecution of financial cases which will give prosecutors a step by step process for prosecution.

We have recommended that for effective prosecution, the prosecution should be made up of a team comprising of; an investigator, prosecutor and other lawyers.

“A series of workshops have been organised by the committee for 180 prosecutors across the country in which we brought in a number of experts to teach them how to draft charges to prevent the charges being faulted in court”, he further explained.

While debunking the notion that

President Muhammadu Buhari was personally involved in the fight against corruption, Sagay said contrary to speculation, the ongoing anti-corruption campaign was not a witch-hunt.

“I am involved in the anti-corruption struggle, I have never received a call from the President giving me instructions on anything, he has assigned responsibilities and he is facing the governance of the country which is what he was elected for.

“We regard corruption cases from the last administration as low hanging fruits because they are the most obvious and have the most impact in terms of resolution", he explained.

On the criticism that there is no change, Sagay said only those with perverse minds are asking where is the change.

"When you have leadership that is determined to eliminate evil and allow Nigerians to enjoy the resources.

"If this government had not come to power, the matter would have been worst. There is a hole and the hole is being fill.

"There is great hope for this country, let us encourage this government that we now have.

"The president is not controlling the fight, the president is not involved in the day to day work of the committee apart from occasional issue of report

to him. .

The guest Speaker, Chief Godwin Obla SAN, stated that the judiciary is very pivotal in the fight against corruption.

“The institutional role of the judiciary puts it on a pedestal as a tool for social engineering which is done through the instrumentality of the court system.

“The judiciary cannot remain soulless, it must connect with the values of the people in justice delivery.

“The adjudicatory system in Nigeria supports case law, the interpretation of statutes by judges have a role in effective justice delivery, he emphasised.”

28.06.2016

TRIBUTE/5

The Late Honourable Justice Niki Tobi Through the Cases - A Tribute Folabi Kuti

I

t is easily the case, without exaggerating the context, that there is a striking semblance between Hon. Justice Niki Tobi’s (of blessed memory) style of setting out his judgments and the flourish exhibited in the judgments of the world-acclaimed English Judge, Lord Denning M.R (also of blessed memory).

Denning was renowned for opening his judgments with an arresting lyrical prelude that seemed ‘aimed’ at catching the fancy of many a reader (lawyers and ‘unlearned’ alike) from the very first faint of ink, and hold him, at the edge of his seat, spell-bound to the very end - till the very resolution of all issues arising in the judgment.

Justice Niki Tobi also penned his judgments, introducing the ‘discourse’ in an engaging manner not commonly seen around these parts, and somewhat reminiscent of Denning’s lyrical opening in MILLER v JACKSON [1977], QB 966. The judgments (of Justice Tobi) always went in logical sequence from the opening to conclusion, so that the mind of the reader could follow the progress of the arguments with ease.

The facts, often as intertwined and engaging as the dispute before the court, were expressively told, engaging the reader’s rapt attention as he went along with a simple, lucid analysis of the minutest details. Take, for instance, his opening in ONAGORUWA v I.G.P [1991] 5 NWLR [Pt. 193] 593 CA: “The 1st appellant is a legal practitioner.

He has his practice at No.96 Lagos Street, Ebute-Metta, Lagos. Like most persons of his societal status, he has a bank account.

That Account Number is 4080. Like most legal practitioners, he has a separate

Clients’ Account. That Account Number is 4570. Similarly, like most law firms, the Law Firm of Chief G. Ayodele Onagoruwa and Co. has a Chambers Account. That Account No. is 4425. It would appear that the 1st appellant was at the material time, a legal practitioner in the Law Firm of Chief G. Ayodele Onagoruwa. So also is the 2nd appellant. As a matter of fact, they instituted the action which is the subject of the appeal “for themselves and on behalf of the Law Firm of Chief G. Ayodele Onagoruwa and Co.” “Let me now take the facts of the case.

In order to really appreciate the basis of the action in the lower court, it is necessary to go to the beginning of the matter. It all started between the 1st appellant and one Alhaja Tayibat Adeniyi. She was a former client of the Law Firm of Chief G. Ayodele Onagoruwa and Co. She lodged a complaint on 8th April, 1988 with the Lagos State Director of Public Prosecutions, who at the material time, was Mr. Abiodun Kessington. He is now a Judge of the High Court of Lagos State. In the complaint, Alhaja Adeniyi made allegations of fraud against the 1st appellant.”

In ADESANOYE v ADEWOLE [2006] 14 NWLR [Pt.1000] p242 at 260, Justice Tobi (JSC), in the opening paragraph, stated matter-of-factly: “The Osemawe of Ondo Chieftaincy Stool is the centre of this appeal. Sometimes in August 1991, the stool became vacant following the death of the occupant, His Royal Highness Oba Itiade Ade Kolurejo.

The common Nigerian expression is that he has gone to join his ancestors, and so let me use that expression too, although I do not know where the ancestral home is. It looks to me like a bandwagon expression as in paragraph 5 of the amended statement of claim and so I join the bandwagon. Nobody wants to say that an Oba is dead, just like that. To some, it is a taboo to say that.

That brought about the litigation. It is a

common occurrence in Nigeria, in contemporary times. We fight for chieftaincy stools, at times when we know as a matter of fact and tradition that we had not the fortune to be born into royalty. Nigerians have a way of pushing themselves to things that have some reputation and fame and these days one green area, if I may use that expression, for want of a better one, is the chieftaincy stool. This is one of such fights. It started in 1991, some fifteen years ago.“ Just as with Lord Denning’s, it is not only for the clarity of exposition in the prose that Justice Tobi’s judgments stand out. There is depth in the form expressed. His quality and training as a law teacher easily have a place in his judgments. Little wonder our law reports are dotted with fine imprints of His Lordship’s scholarly disposition and analytical rigour in the judgments he handed down. It was therefore not out of place when His Lordship’s brother Justices, citing with approval his scholarly contributions, often took time to commend ‘the erudite Scholar-Justice’ (per Denton-West JCA in MUSTAPHA v SUNTAI [2013] LPELR-22109 (CA), for the ‘industry in his researches …. unaided by submissions of counsel.’ (per. Ubaezonu JCA in NWOKEDI v. U.B.N. PLC. [1997] 8 NWLR [Pt.517] 407 at 422; as evident in his judgments, often delivered in “his usual picturesque language” (per Nzeako JCA in AWUDU v DANIEL [2005] 2 NWLR [Pt.909]199 at 222).

Some of the notable cases in which Justice Tobi wrote the leading judgment and brought his great learning to bear are: MOJEKWU v MOJEKWU [1997] 7 NWLR [Pt. 512] p.283 (in which the Court frowned at, and pronounced as unconstitutional any form of societal discrimination on grounds of sex); ODUTOLA v PAPERSACK [2006] NWLR [Pt. 1012] 470 (a most incisive,

The Late Hon. Justice Niki Tobi, JSC

and exhaustive analysis of the attendant legal incidents to ‘tenancy at will’); In RE: Olafisoye [2004] 1 SC [Pt. II] 1 ; A. G ABIA & 2 ORS v A.G FEDERATION & 33 ORS. [2007] 6 NWLR [Pt.1029] 200 (espousing on federalism); NEWSWATCH COMM. LTD v ATTA [2006] 12 NWLR [Pt.993] 144 (on the principle of fair hearing, and ‘arrest’ of judgment); and indeed, so many more. His concurring opinion in the several others he participated in, often helped to put in perspective the position in the lead. It is in this context that this writer is of the view that the seeming conflicting positions (of the apex court) in the 2 oft-cited decisions of the Supreme Court on ascertainment of jurisdiction of the Federal High Court with respect to disputes involving the federal government or any of its agencies – that is, NEPA v EDEGBERO (2002) 18 NWLR 798 79 and ONUORAH v KADUNA REFINCONTINUED ON PAGE 14

Legal Personality of the Week Sotonye Amachree

‘You Must be Ready to Pay the Price to Be Successful’

My Name is Sotonye Amachree (Mrs.), I am from Rivers State, Nigeria. I was called to the Bar in 2004, and I work as Counsel in the law firm, Ajumogobia & Okeke in the Litigation/ Corporate-Commercial departments of the firm.

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

I had challenges in my early years after I was called to the Bar. The challenges had to do with meeting the expectations other Judges and lawyers had of me. At this juncture, it is pertinent to state that my father, the Late Honourable Justice S.E Charles-Granville was sitting as a High Court Judge in Rivers State at the time I was called to the Bar. I started practice in the State and Federal High Courts in Port Harcourt, and as a young lawyer, I was still bearing my maiden name, which always got the attention of both the judges and counsel in court each time I announced my appearance.

Moving my first applications in court was quite interesting because I got the impression from the faces of my colleagues at the Bar, that the daughter of a judge was infallible when it came to legal matters, so it was a challenge living up to these expectations because like everyone else, the early years of a lawyer is the budding phase and a process which one must go through with some rough patches until you attain perfection.

The Judges in whose courts I had matters always gave me a second look each time I announced my appearance in court, and always asked if I

My worst day as a lawyer was the day I was in court to represent the claimant in a case, and I sat in court from morning till evening due to the congested cause list of the court. Finally, when the matter was called, the Defendant Counsel asked for an adjournment as he needed to catch a flight out of town, and all I got was cost from the court; but sadly, the whole day was gone with nothing achieved. So the fact that sometimes lawyers do not prepare adequately for their cases, and come up with excuses not to go on, leads to frustration and delays of several years before a matter is concluded in court.

Sotonye Amachree

was the daughter of their learned brother. In fact I recall how a Judge before whom I filed a Final Written Address years back, got in touch with my father after the proceedings to tell him that he was impressed with the content of my written address. I was really surprised when my father mentioned the court I had been to, the judge, and his opinion about my address.

So yes, managing the expectations of the bar and the bench, and striving to meet up with them I would say was my biggest challenge.

What was your worst day as a lawyer?

What was your most memorable experience?

I would say the day I sneaked into my father's court to observe proceedings in my early years, after I finished law school. In the middle of the proceedings, My Lord stopped and made an announcement that his daughter had just been called to the Bar, and he asked me to stand up for recognition; and all the lawyers at the Bar clapped and congratulated me on my call to the Bar. It was unexpected so I was a bit shy, but I felt good that he was proud of me.

Who has been most influential in your life?

The most influential person in my life was my Late Father, Hon. Justice S.E Charles- Granville.

Why did you become a lawyer?

I got exposed to the wig and gown very early in life, when I was still in primary school, seeing my father daily who had a very active and vibrant legal practice then, so it came to me naturally, that I wanted to be just like him because he was my role model. I also always had the impression that lawyers were brilliant people; we always just stand-out wherever we find ourselves. It is a noble profession indeed.

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

My advice to an aspiring legal practitioner is that you must be ready to pay the price to be successful. Commit your ways to God, be ready to acquire knowledge, acquire the litigation experience first for a few years even if you decide to specialise in other areas of law, develop yourself, be confident, knowing that there are no limitations to the height you can attain because the world is now a global village. You can be anything you want to be, anywhere in the world.

Where do you see yourself in ten years?

I never really thought about any other profession when I had to make that decision. However, if I had not become a lawyer, I would have probably become a Human Resources Practitioner and also taken up studies in International Relations.

Where do you see yourself in ten years?

In 10 years, I see myself becoming a renowned International Arbitrator.

6/

28.06.2016

The Legal Practitioner’s Stamp/Seal Policy and Legal Issues Arising Therein Somina Peter JohnBull

O

ne of the innovations of the Rules of Professional Conduct for Legal Practitioners, 2007 is the codification of the requirement that all processes filed by legal practitioners in Nigeria must have affixed on them, a stamp/seal. However, this has thrown up a number of legal issues which we seek to address in this article.

The requirement of affixing a stamp/seal, inter alia is to check the infiltration of quacks into the legal profession who in the absence of means of verification of their status as lawyers, have taken up the toga and responsibility of lawyers unknown to many members of the public and even members of the legal community. The damage caused by this set of people, eroded the confidence of the public in the competence of lawyers as a whole.

The provisions of Rule 10 of the Rules of Professional Conduct for Legal Practitioners 2007 (hereinafter referred to RPC) are germane and shall be reproduced hereunder thus; 1. A lawyer acting in his capacity as a legal practitioner, legal officer or adviser of any governmental department or Ministry or any Corporation, shall not sign or file a legal document unless there is affixed on any such document a seal and stamp approved by the Nigerian Bar Association.

2. For the purpose of this rule “Legal documents” shall include pleadings, affidavits, depositions, application, instruments, memoranda, reports, legal opinions or any similar documents.

3. If, without complying with the requirements of this rule a lawyer signs or files any legal documents as defined in sub-rule 2 of this rule, and in any of the capacities mentioned in sub-rule (2), the document so signed or filed shall be deemed not to have been properly signed or filed (Emphasis supplied) The stamp/seal policy was not enforced until a resolution was taken at the meeting of the National Executive Committee of the Nigerian Bar Association held on the 14th of November, 2014 at Uyo, Akwa Ibom State. The effective date of its implementation was supposed to be on the 1st of April, 2015. However, owing to logistics and the need to build consensus, the stamp/seal policy was heralded by a launch in a ceremony held on the 15th of April, 2015.

Who Can and When Is It Mandatory to Affix the Stamp/Seal?

By the provisions of Order 10(1) of the RPC, it is not every lawyer that is competent to affix the stamp/seal.

Thus lawyers, in salaried employment other than lawyers employed as legal officers in a Government department, as well as lawyers in default of payment of annual practising fees who are not entitled to act in the capacity of legal practitioners, legal officers or advisers cannot affix the stamp/seal on legal documents. We rely on the provisions of Order 8(1)-(5) and 9 of RPC. Thus, a lawyer who is under any form of encumbrance from practising is not competent to affix the stamp/seal Furthermore, the requirement for affixing the stamp/seal only becomes imperative when the lawyer is acting in his capacity as a legal practitioner.

Thus, a private letter by a lawyer to his ward in secondary school, is not required to have affixed on it a stamp/ seal. This is irrespective of the fact that Order 10(3) of RPC, defines legal

documents to include letters.

We therefore propose that the test which ought to be invoked to determine whether affixing the stamp/seal is mandatory is “whether, the lawyer is acting in his capacity as a legal practitioner in signing the document”. Applying this test, it is submitted that a letter by counsel requesting for an adjournment or applying for the certified true copy of documents, requires the affixing of a stamp/seal.

The definition of legal documents under Order 10(2) is not exhaustive, although we find it difficult to agree that affidavits and depositions, are legal documents in respect of which a stamp/seal ought to be affixed.

This is because, affidavits or depositions are not usually made by a lawyer acting in his capacity as legal practitioner. Where a lawyer deposes to an affidavit or deposition, he does so in his capacity as a witness simplicter. He would be required to be cross-examined as a normal witness in Court, if the need arises. We therefore think that the requirement for affixing a stamp/seal on an affidavit or deposition would only be required to prove the averment of a deponent as to his status as a lawyer. This assumption finds good company in the dictum of Onnoghen, JSC in YAKI v ABUBAKAR (2015) 10-11 SC (PT 1) 46@75 on the purpose of affixing stamp/seal thus; It follows, therefore, that the Provisions of the Rules of Professional Conduct, 2007 is directed at the Legal Practitioner to provide evidence of his qualification to practice law in Nigeria in addition to his name being in the roll at the Supreme Court of Nigeria Finally, it is further submitted that it is not every legal document that must be affixed with a stamp/seal. A document prepared by a litigant, himself does not require a stamp/seal. It is immaterial if the litigant is a lawyer.

This is because, the status of litigant/ legal practitioner has been obliterated in our legal jurisprudence by virtue of the provisions of Order 45(2) (b) of the RPC which provides thus; A lawyer shall not wear the Barrister’s or Senior Advocate’s robe(b) When conducting his own case as party to a legal proceeding in Court It is submitted that the above provision has repealed the decision of FAWEHINMI v NBA (NO 2) (1989) 2 NWLR (PT 105) 494@554. In the light of the above provision it is improper for litigants who conduct their cases themselves to robe and address the Court from the Bar. Consequence of Failure to Affix the Stamp/Seal on a Legal Document?

The first reported attempt to enforce

compliance with the stamp/seal after its launch at the Supreme Court was in the case of M.P.P v INEC, SC/665/2015 on the 12th of October, 2015 which resulted in the following ruling which was reproduced by Onnoghen JSC at page 73 of YARI v ABUBAKAR (supra) thus; The issue of the Bar stamp raised

by Dr. Ayeni is in a circular which has been issued by the Hon. Chief Justice of Nigeria to all Heads of Courts for the betterment of the Legal Practice in Nigeria. The circular has not metamorphosed into a Practice Direction. It cannot be a compulsory requirement for filing process in a court of law as of now. Section (sic) 10 of the Legal Practitioners Rules of Professional Conduct (supra) relied upon by Dr. Ayeni is directory and not mandatory in nature. Failure to affix the Nigerian Bar Association stamp cannot, in my view invalidate process filed in a court of law The reasoning of the Supreme Court in rejecting the contention in M.P.P v INEC (supra) that the stamp/seal was mandatory was premised on the fact that in its view, its mandatory implementation was premised on a circular issued by the Chief Justice of Nigeria and same could not be equated to a practice direction. Furthermore, by the Constitution, it is the heads of respective Courts that are imbued with the powers to issue practice directions.

However, on the 13th of November, 2015, the Supreme Court reconsidered its earlier position on the mandatory nature of the stamp/seal in the case of YARI v ABUBAKAR (supra), and held thus; The documents in question here purportedly signed and filed by a lawyer in his capacity as legal practitioner did not have on it ‘a seal and stamp approved by the Nigerian Bar Association’. The process so signed and filed is a legal process within the intendment of Rule 10(2) of the Rules. (Emphasis supplied) It is instructive to note that the Supreme Court per Onnoghen JSC, in that case held that the provisions of Order 10 of the RPC, did not require any administrative directive to make it enforceable, as it is a subsidiary legislation and has the force of law. We refer to pages 72-74 of the Report.

However, the decision of the Supreme Court was not free from ambiguity as lawyers differed on its legal effect, despite the conclusion of the Supreme Court that failure to affix a stamp/seal made the document voidable and not incompetent. Lawyers who argued that it was otherwise found refuge in partial reliance on the dictum of Ngwuta, JSC in YARI v ABUBAKAR (supra) wherein the

learned Justice held at page 69 of the Report that; It has been signed and filed but not properly so signed and filed for the reason that the condition precedent to its proper signing and filing has not been met.

These lawyers argued that in legal jurisprudence, the condition precedent affected the jurisdiction of a Court and thus, if failure to affix a stamp/seal is tantamount to not complying with the condition precedent, then the process is not voidable but void.

This must have influenced the contention of the Appellant’s Counsel that the petition of the respondent, which did not have a stamp/seal was incompetent in the case of NYESOM WIKE v DAKUKU PETERSIDE (2016) 7 NWLR (PT 1512) 574. However, the Supreme Court in the leading judgment at page 512 held on the failure to affix a stamp and seal thus; It is an irregularity that can be cured ‘by an application’ for extension of time and deeming order It is submitted that the failure to affix a stamp/seal is merely an irregularity and it is hoped that the decision of the Supreme Court in WIKE’s case has finally resolved the issue of the consequence that would attach to a document which does not have affixed on it, the stamp/seal.

Must Every Legal Document have Affixed on it, the Stamp/Seal?

There are two scenarios envisaged herein. By the provision of Order 10 of RPC, every legal document signed or filed by a lawyer in his capacity as a legal practitioner should have affixed on it the stamp/seal. A literal reading of it would mean that it is not just the document filed but also every legal document, which is signed by the lawyer. Under the “frontloading” practice, the writ of summons, statement of claim, list of documents, list of witnesses are legal documents which are also signed by a lawyer acting in his capacity as legal practitioner.

What would be the consequence, if the lawyer affixes the stamp/seal on only the writ of summons and omits to affix it on the statement of claim, list of documents and list of witnesses.

Are the documents, in respect of which there was an omission, irregular and should they be struck out if objection is raised?

The issue was decided by the High Court of Bayelsa State in the case of OYADIEGHA v BAYELSA SUBEB & ORS, YHC/56M/2014 (unreported) ruling delivered on the 21st of April, 2016 wherein the Court held thus; Now, once a court process is filed, every other document attached to that court process is viewed as being part of the same process and once a part is signed and sealed, the other processes attached to the original process are also deemed signed and sealed as they are attached to and form part of the first original process.

It is not enough to say that the Motion, Statement and written address is incompetent just because the stamp and seal was attached only on the Motion.

In my humble opinion the stamped document attached to the original process filed served the requirement of Rule 10 (1) of the Rules of Professional Conduct.

We salute the purposeful approach taken by the Court as in our view, same truly meets the demands of justice and prevents the use of the provision of the RPC, as a taskmaster.

CONTINUED ON PAGE 14

28.06.2016

/7

Domestic Gas Supply - A Pipeline Dream?

Sophie Ejegi

W

ithin the past five months, Nigeria has witnessed no fewer than 11 total collapses of its electricity supply system, plunging the country into darkness.

The perennial system collapse is often attributed to gas shortages to the various thermal power plants in the country. The shortage of gas is said to be borne out of pipeline vandalism but given the varying geographical locations of the power plants, it appears that vandalism may not be the sole cause, but rather, the unavailability of gas supply.

It is bewildering, that with an estimated 187 TCF proven gas reserves (the 9th largest globally), the country’s industrial growth is still stifled by lack of domestic gas supply. It is apparent that the current framework for domestic gas supply is not working and is by extension affecting the electricity supply industry. For any meaningful progress in either sector, there must be a new narrative on the frame work for domestic gas supply-one which takes cognisance of the fact that the lack of gas supply is a local issue which perhaps requires a local solution.

In setting the tone for this new narrative, there is need for an analysis and understanding of a number of issues in the gas sector including: ownership of gas resources, pricing of the resource and the security of supply of same, which might provide some perspective on how we move forward.

Ownership The vast number of laws passed at the advent of and subsequent to the discovery of oil in Nigeria, did not, and still do not, contemplate gas exploration and development. The primary focus of these laws has been, and continues to be, crude oil exploration and production with very little reference to gas. Reference to gas in these legislations relates to “Associated Gas”, gas produced in association with crude oil production. Consequently, the title and ownership of gas found in situ and or that is associated with crude oil production has rarely been an issue for debate. In light of the incessant blackouts however, questions as to the ownership of gas have come to the fore in determining the reasons for the lack of gas supply to the power plants.

For the purposes of determining the ownership of both gas in situ and associated gas produced as an incidence of crude oil production, the Constitution of the Federal Republic of Nigeria, 1999 provides under s.44(3) that “ the entire property and control of all minerals, mineral gas in and under or upon any land in Nigeria or in, under or upon the territorial waters and exclusive economic zone shall vest in the Government of the Federation and shall be managed in such manner as may be prescribed by the National Assembly”. Similarly s.1 (1) of the Petroleum Act vests the entire ownership and control of all petroleum resources in, under or upon any land in Nigeria (including lands under Nigeria’s Territorial waters, Continental Shelf and Exclusive Economic Zone) in the Federal Government of Nigeria. Petroleum is defined in the act to include gas.

Clearly, from the above, title and ownership of any gas in situ belongs to the Federal Government of Nigeria. Having determined the ownership of gas in situ and ascertained that there is no specific law for the exploration and production of same, the question then arises as to ownership of gas produced as an incidence of crude oil production.

For the purposes of crude oil exploration and production, s.

2 (1) of the Petroleum Act permits the Minister of Petroleum to grant Oil Prospecting Licences (OPLs) and Oil Mining Leases (OMLs) for the prospecting, searching, winning, working, carrying away and disposing of petroleum and for the purposes of ownership of these grants and the development of crude oil, the government enters into various contractual arrangements ranging from Joint Ventures to Production Sharing Contracts and Risk Service Contracts.

These arrangements are briefly described below: 1. Traditional joint ventures: The grantees of the licences/leases usually the Federal Government in the guise of NNPC and the International Oil Companies (“IOCs”) jointly own the interests in the entire real property for the duration of the licence. The supposition here is that the grantees –both NNPC and the IOC – jointly have title to any petroleum, including gas, prospected and won under the licence or lease..

2. Production Sharing Contract (PSC): The Federal Government, acting through the NNPC, enters into a contract with an exploration and production company under which the company acts as a contractor to the NNPC for the development of crude oil. The contractor utilises its own funds for the development and is repaid its costs plus profits from the crude oil produced.

Under this arrangement all the contractor owns is an equitable interest in any petroleum found with the legal title retained by NNPC. It therefore suffices to say, that the ownership of any associated gas under PSCs belong to the Federal Government.

This position is amplified in the provisions of all PSC contracts entered into with contractors which require the contractors upon

discovery of commercially viable quantities of gas, to submit proposals to NNPC for the commercial development of same and to enter into separate agreements for such development.

3. Risk Service Contracts: These are similar to Production Sharing Contracts to the extent only that the exploration and production company is a contractor to the Federal Government (NNPC) and provides all the funds and technical expertise required for the development of the asset. The contractor is repaid its investment either in cash or in kind as the NNPC under the arrangement retains the title and rights to the petroleum produced. All natural gas discovered by the Contractor under this arrangement belongs to the NNPC though with the prior permission of the NNPC, the contractor may use the associated gas produced as fuel in its crude oil production operations. Similar to the PSC, when there is a commercial discovery of gas, the contractor is to submit a proposal for the commercial development of same further reenforcing that the gas found belongs to the state.

4. Marginal Fields: The marginal fields programme was introduced to stimulate indigenous participation in the upstream oil and gas industry through the award of oil fields which IOCs found uneconomical to develop or left unattended for a period of 10 years or more and increase Nigeria’s production output. The original licencee and or Lessee (farmor) farmed out the fields within its licence and or lease area to an indigenous exploration and production company (farmee) and is paid a royalty on the production of oil and gas produced from the field. The ownership of any gas produced from such oil fields would reside in the farmee subject to any terms agreed under the governing farm in / farm out agreement.

Concluding from the above, save for arrangements under the PSC and Risk Service Contracts where any associated gas belongs solely to the Federal Government, the ownership of associated gas belongs either jointly as between the Federal Government and its Joint venture partners or to the grantees of either the discretionary awards of OPLs and or marginal field holders.

Whilst the above can be said to be conclusive, some provisions of extant petroleum laws and regulations appear to circumscribe the ownership of the gas. S.7 of the Petroleum Act for instance grants the Minister of Petroleum the right of pre-emption of all petroleum and petroleum products in the event of a national emergency or war. Given the persistent collapse of the electricity grid as a result of gas constraints, it would be an interesting notion if same was deemed a national emergency and this provision invoked so that gas from JV operations hitherto earmarked for export is dedicated to domestic use.

Similarly, Paragraph 34 of the first schedule to the Petroleum Act allows the Minister, in the interest of the public, to impose terms and conditions on a licencee or lessee as to special conditions applicable to any natural gas discovered, and such terms and conditions may include the right of the government to take associated gas produced free of cost at the flare or at an agreed cost and without the payment of royalty.

On the strength of this provision, and with the volume of gas flared (Nigeria is 2nd only to Russia ), can the government not set in motion a concessioning arrangement on a PPP basis for gas capturing at the flare and the treatment of the resource thereafter so that it is readily available to the power plants and other domestic uses?

Furthermore and perhaps stemming from the powers granted the Minister under paragraph 34 of the first schedule to the Petroleum Act, the National Gas Supply and Pricing Regulation was introduced which placed an obligation on every gas producer to allocate a portion of their gas production for the domestic gas market. Non-compliance with this obligation attracts penalties including prohibition of any gas meant for export. Whilst, to our knowledge, no gas exporter has been sanctioned, the enforcement

of this provision may guarantee the much needed gas supply.

Pricing It has also been posited that the unavailability of the resource can be attributed to the reluctance of the oil and gas companies particularly the IOCs to invest in gas development and related infrastructure due to the uneconomic price of gas in the domestic gas market. For this reason the IOCs prefer to invest in gas export oriented projects such as the NLNG as the export price of gas is seen as more attractive and guarantees return on their investment.

Under paragraph 34 of the first schedule of the Petroleum Act, an obligation is placed on a licensee or lessee producing gas to obtain the Federal Government’s approval as to which price the natural gas produced (not taken by government) is sold. It suffices to say that the price of gas in Nigeria is regulated from the wellhead and for oil and gas companies to embark on any gas utilisation project the price of the gas output must have been negotiated and agreed upon with the Federal Government. Given this regulated price of gas, most oil and gas companies are of the view that the price of gas in the domestic market is below cost for them to embark on gas utilisation projects.

To attract investment to the power and gas sectors, the government introduced, in 2008, the National Gas Supply and Pricing Regulations. The Regulation seeks to ensure the transition from a regulated gas pricing regime to a liberated free market system.

This transition is to introduce gradual gas price movements in strategic industries such as the power sector. In this regard, we have seen the regulated price of gas increase from $1.00per scmf in 2010 to $1.50 per scmf in 2011, $1.50 to $2.00 in 2013 and in 2014, the price was further increased from $2.00 to $2.50 with $0.80 for transportation. When juxtaposed with the spot price of gas on Henry Hub, which presently stands at $1.97 per scf, and the average price of gas for electricity in the US standing at $2.95 per scf, the arguments that the price for domestic gas supply is uneconomical do not quite hold firm. This is in addition to the fact that some Nigerian Independents such as Seven Energy and Seplat without access to cheap international funds have proved the uneconomic price theory wrong, given their recorded successes in domestic gas supply and gas infrastructure projects.

Security of supply The Federal Government again restated its plan to increase the electricity generation threshold to 10,000mw within three (3) years.

In the absence of a concerted renewable energy programme and an overhaul of the national grid, it would be a near impossible feat given the lack of critical infrastructure to transport gas (the cheapest and cleanest fossil fuel) to the various power plants.

The reasoning of IOCs and their continued insistence on export oriented gas projects might not be unconnected with the security of supply of the resource for their home nations.

If indeed this assertion is plausible, then perhaps the solution to this local problem lies with the local players such as Seplat, Pan Ocean and Seven Energy. The introduction of the Marginal Field model for gas exploration and development could serve as a catalyst to ensuring security of gas supply for the domestic market as gas fields which have hitherto been left unattended or deemed uneconomical can be licensed to indigenous companies for development. This would help accelerate gas exploration and development of gas supply infrastructure ensuring a new narrative for domestic gas supply.

A new narrative for the gas sector is most certainly required and must be driven by the indigenous oil and gas companies to ensure adequate domestic gas supply does not remain a pipeline dream.

Sophie Ejegi is Practice Manager at Advocaat Law.

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28.06.2016

Mrs. Dorothy Udeme Ufot SAN PHOTOS: Sunday Adigun

‘ICC is the Most Trusted Arbitration System in the World’ Last week Nigeria accomplished an unprecedented feat in the field of arbitration when it hosted the very first International Chamber of Commerce Regional Arbitration Conference in Africa. The ICC conference which held at the Eko Hotel and Suites had leading arbitrators from around the world in attendance, including ICC President, Mr. Alexis Mourre. May Agbamuche-Mbu, Jude Igbanoi and Tobi Soniyi sought the views of the Chairperson of the Organising Committee, Mrs. Dorothy Udeme Ufot SAN, C.Arb on the challenges of putting together such a world-class event amongst other pressing issues regarding the future of international arbitration in Africa.

T

he ICC chose Nigeria to be the first African country to host its Regional Arbitration Conference. What were the challenges of organising a conference of such magnitude?

No discussion about this conference or why the ICC chose Nigeria as the First African country to host its African Regional Conference on International Arbitration will be complete without first giving you the background of the International Chamber of Commerce, popularly referred to as the “ICC” and the background of the International Court of Arbitration of the ICC. The ICC is the world business organisation, a representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world.

The Mission of the ICC is to promote open international trade and investment and help businesses meet the challenges and opportunities of an increasingly integrated global economy.

As the voice of world business, the ICC’s conviction that trade is a powerful force for peace and prosperity dates back from the organisation’s origins early in the 20th century, when the small group of “far-sighted business leaders who founded the ICC called themselves “the Merchant of Peace””.

This small group of business leaders considered the ravaging effect of the 2nd world war and convinced themselves that world peace could be achieved through trade. Today the global network of the ICC comprises over 6 million companies, chambers of commerce and business associations in more than 130 countries.

The ICC has three main activities: rule setting, dispute resolution and policy advocacy.

Coming to dispute resolution and arbitration, you will agree with me that it is impossible to talk about business or investment without anticipating disputes. In this regard, the ICC provides other essential services, foremost among which is the ICC International Court of Arbitration, which is the world’s leading arbitral institution.

The ICC International Court of Arbitration is the most trusted system of arbitration in the world, with arbitration under its rules on the increase.

Since 2009 the ICC Court of Arbitration has received new cases at a rate of over 750 annually.

The ICC Court of Arbitration holds international arbitration Conferences annually in several regions of the world, and none has ever been held in the African Region.

As to why Nigeria was chosen to host the first ICC Africa Regional Arbitration Conference, Nigerian parties remain the most frequent users of ICC Arbitration in the region followed by South Africa.

In 2015 for instance, of the 801 cases filed with

the Court, involving a total of 2,283 parties, 18 of these were Nigerian parties followed by South Africa which recorded 15 parties in total in 2015.

There has been a steady increase in the number of Nigerian parties opting for ICC Arbitration in recent times, so the choice of Nigeria hosting this first ICC Arbitration Conference in the region was not a difficult decision for the ICC Headquarters in Paris.

The major challenge of organising a Conference of this magnitude was funding.

The ICC Nigeria National Committee is a

"THE ICC INTERNATIONAL COURT OF ARBITRATION IS THE MOST TRUSTED SYSTEM OF ARBITRATION IN THE WORLD, WITH ARBITRATION UNDER ITS RULES ON THE INCREASE. SINCE 2009 THE ICC COURT OF ARBITRATION HAS RECEIVED NEW CASES AT A RATE OF OVER 750 ANNUALLY"

non–profit organisation, so the ICC did not have the funds to organise such a huge conference.

When Nigeria won the slot to host this conference last year, the Nigerian economy was not this bad.

We were very optimistic that we will raise the funds from corporate organisations in Nigeria and the Law firms, relying on the global reputation of the ICC to sell the conference. Unfortunately, the Nigerian economy took a turn for the worse even before we started marketing the conference.

Because we had already made a commitment to Paris to host the conference, it became a reputational issue that the conference must go on.

A few corporate organisations came to our rescue. Globacom, the Grandmaster of Data in the telecommunications industry was our major sponsor. They believed in us and gave us incredible support both in cash and kind. You would have observed that Glo ran several full page ads in several national dailies to announce this Conference.

They held several meetings with key members of the Planning Committee advising on what steps we should take to make the conference a success.

The Glo team even traded their goodwill by going with us to negotiate costs with Eko Hotels & Suites, which made the costs of the venue of the conference affordable.

Glo was more than a sponsor for this event, they were truly our partner and we remain deeply grateful to the team, particularly their chairman,

28.06.2016 "AS TO WHY NIGERIA WAS CHOSEN TO HOST THE FIRST ICC AFRICA REGIONAL ARBITRATION CONFERENCE, NIGERIAN PARTIES REMAIN THE MOST FREQUENT USERS OF ICC ARBITRATION IN THE REGION FOLLOWED BY SOUTH AFRICA" Dr. Mike Adenuga, Jr., GCON, who agreed to sponsor this conference and remained committed to its success.

Next to Glo, were Dangote Cement PLC and Access Bank PLC. They both gave us considerable financial support.

As you know, I was recently appointed to the Board of Dangote Cement. We approached them to sponsor the event and they did. We are deeply grateful to the Chairman of Dangote Cement PLC, Alhaji Aliko Dangote, GCON, and Dr. Herbert Wigwe, Managing Director Access Bank PLC. Equally deserving of our gratitude are Mary Akpobome, Executive Director of Heritage Bank, John Momoh, Chairman & CEO of Channels TV, Mr. Hassan Bello, Executive Secretary & CEO of Nigerian Shippers' Council, Eko Hotels & Suites, SO&U Limited.

Our very deep gratitude goes to the President of the Nigerian Bar Association (NBA) Mr. Augustine Alegeh, SAN, FCIArb (UK), for the huge financial and moral support given to the Planning Committee. The members of the NBA in the Planning Committee were wonderful, they made a difference to the planning of the conference.

I am deeply grateful to the Chairman of ICC Nigeria, Mr. Babatunde Savage, our Chairman emeritus, Chief (Dr.) Olusegun Osunkeye, Vice Chairman Chief (Dr.) Raymond Ihyembe and Professor Gabriel Olawoyin, SAN, Chairman ICC Nigeria Commission On Arbitration & ADR for all their counsel and contributions to the success of this event.

We are grateful to the Vice President of the Federal Republic of Nigeria, Professor Yemi Osinbajo, SAN, GCON and the Attorney General of the Federation, Mallam Abubakar Malami, SAN for declaring the conference open.

I must thank my beloved husband, Mr. Udeme Ufot, MFR, specially for standing by me during the very difficult time of the planning of the conference.

He brought his experience to bear in his counsel, he ensured that I remained focused, he solicited assistance for the Planning Committee and worked with us remotely, vetting our budget and taking out items he considered “not must haves” and together with the Shippers’ Council donated buses and drivers for conveying our foreign speakers and delegates throughout the duration of the conference.

I personally cannot thank him enough for keeping me focused during this period.

I am also very grateful to all the sponsoring Law firms, too numerous to mention and to Senator Daisy Danjuma for her Sponsorship.

I am grateful to all the members of the Planning Committee for the incredible hard work they put in to ensure the success of this Conference.

It is very important to appreciate our sponsors, partners and supporters for this conference for the simple fact that this conference took place in a very depressed economy, yet it recorded a resounding success such that the President of the ICC Court of Arbitration, Mr. Alexis Mourre, who visited Nigeria for the first time wrote to congratulate us for “an outstanding event” saying that we have set the bar very high for next year.

Our sponsors made this happen and we are extremely grateful.

The theme of the conference was ‘Arbitration and Africa: Prospects and Challenges. ’ In your opinion what do you see as the challenges and prospects of Arbitration in Africa?

Africa is an attractive destination for Foreign Direct Investment (FDI), but until recently, not an attractive destination for the resolution of the disputes which arise from these investments.

However, recently, there has been a growing interest in African Arbitration. African lawyers and arbitrators are now clamouring for African countries to be nominated as seats for international arbitration.

Much more arbitrations are now being conducted in African countries such as Nigeria, Kenya and Tanzania to mention just a few.

This development no doubt has its prospects and its challenges.

One of the key prospects of Arbitration and Africa is the opportunity for African lawyers and arbitrators to gain practical experience in the art of arbitrating business disputes, bearing in mind that arbitration procedures are different from litigation

COVER/9 which we all are used to. Our lawyers and arbitrators also earn the fees associated with arbitration proceedings and our Courts get the opportunity to decide many issues that arise and are related to these proceedings, thereby contributing to the growth of the jurisprudence and precedents in the field of arbitration.

Countries such as the UK, USA, France and Switzerland are today referred to as arbitration friendly countries, because the decisions of their Courts in respect of arbitration in terms of the enforcement of arbitration agreements and awards have been tested to the highest levels of their Court systems and the outcome of any matter filed in these Courts are reasonably predictable, quite unlike what obtains in most African countries.

These are the prospects of the growing interest in African arbitration.

The challenges are however enormous, principal among which is the perception of corruption, the delays in the judiciary, lack of adequate infrastructure etc.

We must deal with these issues if African countries must graduate to becoming preferred destinations for international arbitration. This is what informed the theme of this conference. If Africa must be relevant in the scheme of things, particularly in terms of its enormous natural resources, often the subject matter of arbitration proceedings, then we must look ourselves in the face and tell ourselves the home truth by making efforts to deal decisively with these challenges.

There were a number of outstanding topics and exceptional speakers who attended the conference. What were the highlights of the conference?

This was a gathering of the world’s most experienced and renowned arbitrators and delegates. We had 60 speakers from all over the world. A truly stellar panel of speakers. They all came and not one of them was sponsored by the committee. They paid their fares and also paid for their accommodation.

The topics of discussions aimed at highlighting the challenges of arbitration in Africa, such as the Rising Costs of Arbitration, the Impact of the Judiciary on Arbitration in Sub-Saharan Africa, the Abuse of Process in International Arbitration and the Unwillingness of Counsel to Accept the Outcome of Arbitration.

We had 4 parallel industry sessions to discuss the challenges in these sectors: These were Arbitrating Construction Disputes, Arbitrating Energy Disputes, Arbitrating International Trade and Shipping Disputes, and Arbitrating Telecommunications Disputes. The discussions were intense and thought provoking and the speakers and delegates were extremely delighted to have been part of this epoch making event.

The ICC Nigeria, ICC Court of Arbitration and the NBA were organisers of the conference. What is the relationship between these organisations?

As I said earlier, the ICC is the World Business Organisation and it operates all over the world through a network of National Committees. The ICC only admits individual members in countries where there are no national committees.

The relationship between these organisations lies in the fact that the ICC International Court of Arbitration is one of the organs of the ICC. The ICC International Court of Arbitration is the world’s leading arbitral institution. “A truly global institution delivering high-quality services inspired by the core values of transparency, diversity and ethical excellence”.

ICC Nigeria, is an affiliate of the ICC in Paris and Co-organiser of the 1st ICC Africa Regional Conference on Arbitration, which took place in Lagos on 19th to 21st June, 2016.

Although one does not have to be a lawyer to

be an arbitrator, majority of arbitrators in Nigeria for instance are lawyers. The President of the NBA, Mr. Augustine Alegeh, SAN is an arbitrator. He is a Fellow of the Chartered Institute of Arbitrators, UK, as a renowned arbitrator himself, it was not difficult to convince the NBA President to support this event and the NBA gave us massive support which contributed in no small terms to the resounding success of the conference. So these three organisations pulled together to ensure the success of the conference.

One of the sub-thematic issues addressed at the conference, “Unwillingness of Counsel to Accept the Outcome of Arbitration in Sub-Saharan Africa Damaging the Brand” is very pertinent as parties often challenge arbitral awards in court. How was this theme tackled at the Conference?

This is part of the Challenges of arbitrating in Africa. Oftentimes parties challenge arbitral awards in court. This is a negation of the parties’ agreement to resolve their dispute by arbitration, the outcome of which is final and binding. Meaning that, once an award has been published, it should be complied with voluntarily, but this is not the case in most African cases. This issue had to be debated during this conference as one of the challenges of arbitrating in Africa.

There are several organisations offering Institutional Arbitration services such as the London Court of International Arbitration, Permanent Court of Arbitration and International Council for Commercial Arbitration (ICCA). What are the advantages of conducting Arbitration at the ICC? There are no doubt several arbitration institutions in the world providing arbitration services but the ICC stands out because of the scrutiny process which ICC awards are subjected to before publication. Prior to being approved, awards undergo scrutiny by the ICC Court, which may lay down modifications as to form, and draw the tribunal’s attention to points of substance. This ensures that ICC awards are hardly set aside by the Courts in almost all jurisdictions in the world. It is only the ICC Court that adopts this procedure and here lies the attraction for ICC arbitration.

The ICC International Court of Arbitration and the ICC Commission on Arbitration and ADR are organs of the ICC involved in dispute resolution in different capacities. Could you enlighten us on their functions?

While the ICC Court of arbitration administers ICC arbitrations taking place in different parts of the world and acts as appointing authority, where the parties have failed to appoint arbitrators, the ICC Commission on Arbitration and ADR is a forum for pooling ideas on issues relating to International Arbitration and other forms of dispute resolution. The ICC Commission on Arbitration,

"IF AFRICA MUST BE RELEVANT IN THE SCHEME OF THINGS, PARTICULARLY IN TERMS OF ITS ENORMOUS NATURAL RESOURCES, OFTEN THE SUBJECT MATTER OF ARBITRATION PROCEEDINGS, THEN WE MUST LOOK OURSELVES IN THE FACE AND TELL OURSELVES THE HOME TRUTH BY MAKING EFFORTS TO DEAL DECISIVELY WITH THESE CHALLENGES"

in Paris of which I am one of the 8 global vice presidents, among other responsibilities, drafts and amends ICC’s Arbitration, ADR, Expertise, Dispute Board and other forms of dispute resolution rules, provides reports, guidelines and best practices on a range of topics of current relevance to the world of International Dispute Resolution, with a view to improving ICC dispute resolution services. The Commission also creates a link among arbitrators, Counsel and users to enable ICC dispute resolution to respond effectively to the users’ needs.

Nigerians often prefer to conduct their Arbitration in other jurisdictions, even when most of the transactions resulting in the dispute took place in Nigeria. What are the possible reasons for this development?

This is also still part of the challenges of arbitrating in Nigeria and indeed Africa.

Many Nigerians do not trust the system, particularly the Court system, which sometimes intervenes unjustifiably in on-going arbitration proceedings by issuing anti-arbitration injunctions to restrain on-going arbitrations. They are also afraid of corruption etc, they claim. This is why this conference was extremely important and crucial at this time when there is evidently, a growing interest in African Arbitration. We discussed all these challenges at the conference, including the training of judges. We discussed the length of time that arbitration cases take in our courts and whether there is the need to create specialised courts for arbitration cases. The courts are key to the proper functioning of the arbitral system.

Court Support for arbitration is fundamental.

A viable system of resolving disputes by arbitration is one of the crucial factors which foreign investors consider before investing in a host country. So getting this right is of absolute importance. Very important, complex and high volume disputes are currently being resolved by arbitration in Nigeria and other African countries particularly in Construction and Oil & Gas. We must begin to hold these hearings in African countries to enable us test the system and make sure it works. This is the only way that we can change the mindset of the users of the process.

Since arbitration is strictly confidential, most parties are discouraged by the fact that arbitration proceedings do not form precedents and are not normally published as law reports, in sharp contrast to litigation.

Is there a way around this issue?

This is another area where ICC Arbitration Court is taking the lead. The ICC publishes its awards, although, unlike courtroom litigation, without the names of the parties involved in the proceedings.

It is a collection of ICC Arbitral Awards, the latest of which is the 2008-2011 Awards. It is published by Kluwer Law International. I use these collections of ICC Awards regularly when I am writing my awards, because nothing is new.

We are dealing with contracts gone bad. The issues repeat themselves in similar cases, so I use them as guides when I am writing my awards. Again, the publication of ICC awards sets the ICC Court of Arbitration apart from other institutions offering arbitration services.

The Privileges Committee has been prevailed

CONTINUED ON PAGE 10

10/COVER

28.06.2016

‘ICC IS THE MOST TRUSTED ARBITRATION SYSTEM IN THE WORLD’ upon over the years to accord arbitration proceedings, the status of concluded matters in court for the purpose of compiling cases for the award of Silk. Would you support this move?

I more than support the move to accord arbitration proceedings, the status of concluded matters in court for the purpose of compiling cases for the award of Silk.

Although I did not use any arbitration case as part of my cases when I applied for Silk, because I sit more as an arbitrator than as counsel in arbitration proceedings.

Many arbitration proceedings that I have been involved in around the world are very complex, if you take a typical complex Construction or Oil & Gas disputes as examples.

The documentation in most of these arbitrations are enormous, requiring excruciating hard work on the part of Counsel to wade through the documents, make sense out of them and present the client’s case before the arbitral tribunal. There is serious advocacy in arbitration. There is persuasion, just like you find in the courtroom. Do not forget that most arbitrators are lawyers, and some of them are retired judges who have their expectations from counsel appearing before them.

I sat in several complex and high volume Oil & Gas, LNG and dredging arbitration cases with the late Justice Kayode Eso. He was revered. You dare not appear before him as Counsel in an arbitration proceeding without being fully prepared to present your case. I believe that by the time a Counsel goes through such rigour, an award arising from such an arbitration hearing ought to be accorded the status of a final judgement of a court for the purpose of compiling cases for the award of Silk.

Steps however must be taken to ensure that the particular Counsel putting forward the award, was actually the Counsel that conducted the proceedings in respect of the arbitral award submitted.

The Privileges Committee can achieve this by requesting for some of the transcripts or the record of proceedings, which will definitely show that the particular Counsel conducted the proceedings. I also believe that there should be a mixture of both court judgments and arbitral awards for such an applicant to create a balance.

You are a Chartered Arbitrator and you have been admitted to the Chartered Institute of Arbitrators’ UK Panel of Chartered Arbitrators thereby becoming the youngest Nigerian to be granted such an honour by the institute. What are your comments on the career progression in Arbitration?

Yes, indeed. I qualified as a Chartered Arbitrator in 2003 having earlier qualified as a Fellow of the Chartered Institute of Arbitrators UK in 2000. At the time I qualified as a Chartered Arbitrator, I was the 2nd Nigerian female to so qualify and the 5th and youngest Nigerian to qualify as a Chartered Arbitrator at that time from the UK Chartered Institute which was at that time and still is the number one arbitration training institution in the world. I have made very rapid and impressive progress in International Arbitration. I have also worked excruciatingly hard to be where I am today in International Arbitration. The beginning was not easy at all. International Arbitration is a closed club, although it is opening up now. Being an African and a woman were big issues but I wasn’t deterred.

I must also acknowledge God’s Grace in my career progression in this field. I was blessed to meet Mr. Tony Canham, who later became the President of the Chartered Institute of Arbitrators UK, very early in my quest to become an accomplished international arbitrator. He believed in me and trained me. He is an Engineer by his primary profession and a renowned international arbitrator.

He trained me in Construction disputes, as an Engineer. Tony and his wife Valerie embraced me and I took the opportunity very seriously.

He was extremely supportive of my ambition to qualify as a Chartered Arbitrator. He continued his support after I became a Chartered Arbitrator.

He placed his hands publicly on my shoulders at International Conferences and invited me to share his table at dinner with his wife and other top foreign arbitrators during the institute’s annual conferences, thereby giving me a nod of approval.

His wife, colleagues and friends became my friends and before I knew what was going on, they had all started calling me by my first name. I have also kept my relationship with very many of them and made my own friends in the field, which was evident in the number of foreign arbitrators who readily accepted our invitation to speak at the conference.

I am truly indebted to Tony for all he has done and today we are great family friends.

As the fight against corruption reaches the global level, arbitrators are increasingly faced

with domestic and anti-corruption legislation.

What are your comments on the current ethical standards in International Arbitration?

For arbitration to continue to maintain its position as the preferred mechanism for the resolution of business and investment disputes, the process must be free of corrupt practices.

Corruption in any form or field of endeavour is bad. The global fight against corruption is a most welcome one and the arbitration industry and arbitrators must eschew corruption.

The ICC is doing a lot of work in the area of anti-corruption. One of the ICC Commissions is the Commission on Corporate Responsibility and Anti-Corruption.

The mandate of this Commission is to develop policy recommendations and practical tools from the global business perspective on corporate responsibility and fighting corruption. The ICC Institute of World Business Law has a publication titled “Arbitration, Money Laundering, Corruption and Fraud.”

Corruption is real and all hands must be on deck to fight this menace generally and in arbitration in particular.

To this end, the on-going fight against corruption and corrupt practices in Nigeria is a welcome development as corruption leads to poverty and underdevelopment.

The ICC introduced the Emergency Arbitrator procedure under its 2012 rules to provide urgent interim relief to parties before the constitution of the arbitral tribunal. Could you explain the benefits of this procedure to Arbitration practice?

The Emergency Arbitrator Procedure introduced under the 2012 ICC Rules of Arbitration is a welcome development in International Arbitration.

The procedure becomes relevant where a party to an arbitration requires urgent interim relief before the commencement of arbitration proceedings.

For example if the interim measures sought are designed to preserve the status quo, such as preventing a bond from being called or a ship from leaving the harbour. The advantage here is that settlement is more likely to be possible with the preservation of the Status Quo by way of an Emergency Arbitrator’s order.

The ICC reports that since 2012, more than 23 Emergency Arbitrator’s orders covering a broad range of jurisdictions and industry sectors have been received by the ICC. The system is working effectively abroad. You can imagine a ship carrying a Cargo of crude oil being prevented from departing the harbour by an Emergency Arbitrator order. I can assure you that there will be prompt settlement of the dispute because of the huge costs of the detention of the vessel with the cargo. It will be interesting to see how this process works in Africa.

Some Arbitration experts are of the view that the costs associated with domestic arbitration are increasing steadily, thereby deterring parties from referring their disputes to Arbitration. In your opinion is Arbitration more expensive than litigation? How can parties minimise the cost of arbitration proceedings?

This question must be answered within context.

What type of arbitration are we referring to? There is no doubt that the cost of arbitration is rising.

This was one of the hot topics at this conference.

There was a presentation of the ICC Commission Report on the “Decision On Costs In International Arbitration” by the Secretary General of the ICC Court of Arbitration, Mr. Andrea Carlevaris. There was also a debate on Costs: The Cost of Arbitration in Sub-Saharan Africa, particularly dealing with the perception of the rising cost of Arbitration.

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"IT IS VERY IMPORTANT TO APPRECIATE OUR SPONSORS, PARTNERS AND SUPPORTERS FOR THIS CONFERENCE FOR THE SIMPLE FACT THAT THIS CONFERENCE TOOK PLACE IN A VERY DEPRESSED ECONOMY, YET IT RECORDED A RESOUNDING SUCCESS SUCH THAT THE PRESIDENT OF THE ICC COURT OF ARBITRATION, MR. ALEXIS MOURRE, WHO VISITED NIGERIA FOR THE FIRST TIME WROTE TO CONGRATULATE US FOR “AN OUTSTANDING EVENT” AND THAT WE HAVE SET THE BAR VERY HIGH FOR NEXT YEAR" Since this discussion is about ICC, I can state authoritatively that the ICC is committed to ensuring that proceedings are conducted in an effective and cost effective manner. It is important to stress that from the statistics provided by the ICC, party costs (including lawyers’ fees and expenses, expenses related to witnesses and expert evidence and other costs incurred by the parties for the Arbitration) make up the bulk of the overall costs of the proceedings. Arbitrators’ fees and case administration account for a much smaller proportion of the overall costs of Arbitration.

The above notwithstanding, the ICC Commission on Arbitration has already done significant work to help keep party costs under control.

There have been calls for the amendment of the Arbitration and Conciliation Act 2004 to bring it in line with global best practices in Arbitration. Would you support this agitation?

What policies should the Government put in place to facilitate the growth of arbitration and ADR in Nigeria?

I fully support the agitation for the amendment of the Nigerian Arbitration Act, which has long passed its sell-by date. How can an Act which came into force in 1985 answer the contemporary questions which arise in International Arbitration.

This is clearly one of the critical challenges of Arbitrating in Nigeria. The Act is completely outdated for contemporary International or Domestic Arbitration practice.

To be attractive to foreign investors, the government of a host country must declare through its national legislation and other policy instruments a readiness to submit to international arbitration for the resolution of its investment disputes.

The Federal Government of Nigeria declared its readiness to submit to International Arbitration by ratifying the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958. Nigeria further declared its readiness to submit to International Arbitration by acceding to the World Bank Convention on the settlement of Investment Disputes 1965, the ICSID Convention and thereafter enacted the International Centre for the Settlement of Investment Disputes (Enforcement Act).

Several other statutes which provide for arbitration as the dispute resolution mechanism

in key sectors of the Nigerian economy include the Petroleum Act, the LNG Act, the Public Enterprises (Privatisation and Commercialisation) Act and the Nigerian Investment Promotion Commission Act. As further evidence of the Federal Government’s preparedness to embrace arbitration as a preferred dispute resolution mechanism in all domestic and international contracts through a circular issued by the Secretary to the Federal Government of Nigeria in 2004, directing that all international and domestic contracts involving ministries, parastatals and extra-ministerial agencies should contain arbitration clause.

It therefore appears to me that the Federal Government has put in place sufficient laws to facilitate the growth of Arbitration in Nigeria, except for the archaic arbitration legislation it lies in the hands of us practitioners to agitate for the reform of the Law. There is an ongoing debate regarding the impact of the New York Convention on developing economies. Some are of the view that it does more harm than good to these countries. What are your thoughts on this issue?

I do not agree with the view that the New York Convention does more harm than good to developing economies. The New York Convention is one of the World’s most progressive pieces of legislation that has influenced the growth of Arbitration all over the world.

As David Rivkin, current President of the International Bar Association, (IBA), himself a world renowned Arbitrator, once noted, the New York Convention is the “United Nations’ greatest achievement in private international law, whose practical effect has been to change the way in which business is conducted around the world”.

The New York Convention is the best thing that ever happened to Arbitration and international business. It obligates contracting parties to honour their obligation to resolve their business disputes by arbitration, having contracted that the arbitration award resulting from the arbitration proceedings will be final and binding on the parties. But for the New York Convention, the arbitration industry would have been extremely chaotic.

Foreign Arbitral Awards are readily recognised and enforced by the Courts of many countries all over the world today due to the New York Convention. Nigeria is a signatory to the New York Convention having ratified the convention in March, 1970. The New York Convention applies to Nigeria and forms part of our Arbitration and Conciliation Act. Only countries or parties who have no intention of honouring their contractual obligations to arbitrate and be bound by the outcome of the arbitration would criticise the New York Convention as being oppressive or unfavourable to developing economies.

You been involved in several complex Arbitrations in the oil and gas Industry representing major multinational oil companies. Could you elucidate on the nature of arbitration in the oil and gas Industry?

Different types of disputes, too numerous to mention, occur daily in the Oil & Gas industry such as disputes relating to production sharing contracts, Gas Sales and Purchase disputes, for example. As you know, the arbitration process is very confidential, and one is precluded from making public statements about the cases that one has been involved in. What I can say however is that most Oil & Gas disputes are often very huge and complex requiring the nomination of a knowledgeable and competent Arbitrator.

In recent years few female lawyers have attained the rank of SAN, last year only one female lawyer was awarded the rank of SAN. Could this be a fair representation of female lawyers in the legal profession?

The issue of the elevation of female lawyers to the rank of SAN cannot be predicated upon or viewed only from the perspective of being female.

I personally do not believe that things should be done for women simply because they are women or that standards should be lowered to accommodate women.

Women must obtain whatever they desire, not just SAN, through hard work and by merit.

Meeting the requirements for the attainment of the status of SAN is extremely challenging, as such, as many women who qualify for elevation to the prestigious rank should be admitted to the inner bar.

The number of women eventually conferred with the rank should be based on the number of women who apply and meet the requirements.

Meeting the requirements for SAN is very time consuming requiring a great deal of focus on the practice of law and the attainment of the requirements as contained in the guidelines for the award prevailing at the time of the application for elevation to the inner bar.

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Transparency in Investor-State Dispute Settlement Paul Obo Idornigie

T

Introduction

his paper intervenes in the area concerning Transparency in Investor-State Dispute Settlement.

My intervention is derived principally from four main instruments, namely, a. ICSID Arbitration Rules, 2006. b. UNCITRAL Arbitration

Rules, 2013. c. UNCITRAL Rules on Transparency in Treay-Based Investor-State Arbitration, 2014. d. UN Convention on Transparency in Treaty-Based Investor-State Arbitration, 2015 (“the Mauritius Convention”).

I must add that there are other regional instruments/arbitral decisions dealing with transparency in Investor-State Dispute Settlement (ISDS) and third party participation. However, these four instruments have substantially changed the landscape of investor- state dispute settlement.

I will briefly trace the evolution of investment treaties and examine the provisions of some of them – bilateral, regional and multilateral as well as the modern templates – Southern African Development Community (SADC) and UNCTAD Handbook. I will also examine Transparency – UNCTAD Series on Issues on International Investment Agreements (IIAs).

I will preface this intervention with some statistics: i. African States have entered into about 769 BITs. ii. The Purpose and contents of the BITs are generally the same – in terms of dispute resolution, they are ISDS. iii. 44 out of the 54 African States have signed and ratified the ICSID Convention; 4 have signed but not ratified, and 6 have neither signed nor ratified the Convention. iv. 29 out of the 44 have been involved in ICSID proceedings. v. The disputes usually arise from an investment contract, investment legislation or a BIT. vi. Africa accounts for 28% of the ICSID Members and 23% of ICSID proceedings, but African arbitrators and/or conciliators account for less than 1% of the appointments. vii. Egypt has the highest number of BITs in Africa (100), followed by Morocco (61), Tunisia (54), Algeria (46), South Africa (46), Mauritius (36), Libya (32), Zimbabwe (30). Nigeria is ranked 14 with 22 BITs. Thus Africa is a major player in this area.

Yet, the Africa region appears to be an object and not a subject of international law.

Evolution of Investment Treaties Under customary international law, disputes between nationals and host states were resolved through the use of force (the so-called ‘gunboat diplomacy’), consultations or diplomatic channels.

One major weakness of this method is that it has no default dispute resolution mechanism that would supplement those in the host state. With the 1965 Washington Convention and emergence of BITs, a dramatic shift took place. The Treaty of Friendship, Commerce and Navigation (FCN) is often cited as the precursor to modern investment treaties.

Most investment treaties provide for two distinct dispute settlement mechanisms: one for disputes between the contracting states and the other for disputes between a host state and an aggrieved foreign investor. Generally in BITS, the provisions on state-state arbitration is in relation to the application and interpretation of the BIT while in terms of dispute resolution arising from the investment, it is investor-state arbitration under the auspices of the 1965 Washington Convention or the ICC Arbitration Rules and the LCIA Arbitration Rules. The Southern African Development Community (SADC) Model BIT Template, 2012, now provides for actual resolution of the investment disputes under certain conditions in addition to the traditional role of confining state-state arbitration to the interpretation and application of the BIT'. One of such conditions is the exhaustion of local remedies.

Over the years, granting a private party the right to maintain an action against a sovereign state before an international tribunal has generated a lot of controversy. This is a revolutionary innovation that now seems to be largely taken for granted. Yet its uniqueness and power should not be overlooked. The field of international law, for example, contains no similar procedure.

Violations of trade law, even though they strike at the economic interests of private parties, are resolved directly and solely by states.

The World Trade Organisation (WTO) does not give a remedy to private persons injured by trade law violations. Modern investment treaties grant aggrieved investors the right to prosecute their claims independently, without regard to the concerns and interests of their home governments. The investors appoint private arbitrators to superintend over the affairs of a sovereign state. The proceedings are held privately and ICSID awards are not published unless with the consent of the parties.

Arbitral tribunals are known to have rendered substantial awards against host countries, the latest and largest ever is the sum of over $50 billion awarded against the Russian Federation in YUKOS UNIVERSAL LIMITED (ISLE OF MAN) v THE RUSSIAN FEDERATION PCA Case No AA 227, Final Award of 18 July, 2014. This arbitration was based on the Energy Charter Treaty, 1994 and conducted under the UNCITRAL Arbitration Rules, 1976.

The privacy of ICSID arbitration has raised concerns about transparency and third party participation in investor-state arbitration. The issue of transparency and third party participation as amicus curiae, especially by non-governmental organisations (NGOs), came to the fore in MATHANEX CORPORATION v USA, an investor-state arbitration under the North American Free Trade Agreement (NAFTA) Chapter 11 (1992). A decision similar to Methanex Case was made by another NAFTA Tribunal, in UNITED PARCEL SERVICE OF AMERICA INC v GOVERNMENT OF CANADA. In both cases, the Governments of Canada and the United States took positions favouring the filing of amicus curiae briefs or memorials by NGOs, while the Government of Mexico opposed such filings. It is noteworthy that all NAFTA Governments have now agreed to a policy of transparency with respect to NAFTA proceedings and regularly post NAFTA arbitration filings on the NAFTA website.

There are several other ICSID decisions on Non-Disputing Party Participation. However, I found PERO FORESTI, LAURA DE CARLI AND OTHERS v REPUBLIC OF SOUTH AFRICA very interesting. The petitioners sought three reliefs, namely, to file a written submission with the Tribunal regarding matters within the scope of the dispute, access to certain key arbitration documentation and permission to attend and present the key submissions at the oral hearings when they take place. In the alternative, the petitioners sought to attend and/or observe the oral hearings. The Tribunal granted the reliefs sought in the petition. However, the reference was discontinued. This is not to suggest that all such petitions are granted.

Another concern is the enforcement of ICSID awards. Article 54(1) of the ICSID Convention requires each ICSID member state to recognise an award rendered pursuant to the Convention as binding and enforce the pecuniary obligations imposed by that award within its territories as if it were a final judgment of a court in that state. Pursuant to these provisions, the Federal Government of Nigeria passed the International Centre for Settlement of Investments Disputes (Enforcement of Awards) Act designating the Supreme Court for the purpose of enforcing ICSID awards. The consequence of this is that a review of the award is not possible under ICSID. This was alluded to by Kaita Yannaca-Small thus: On the contrary, the ICSID Convention system prevents domestic courts from reviewing any of its decisions, and ICSID awards are therefore immune from challenges brought before national courts which may have a local bias or be subject to the influence of the host government. The ICSID Convention mechanism is self-contained, providing for internal control which includes provisions on the review of the awards.

Thus the only remedy available to an adverse award is annulment proceedings, which also have restrictive provisions. With all these challenges, Art 15 of the ICSID Arbitration Rules provide that proceedings shall take place in private and remain secret. Similarly Article 28(3) of the UNCITRAL Arbitration Rules provides that hearings shall be held in camera unless the parties agree otherwise. This is a sharp contrast to investment treaty awards under NAFTA, ECA, Canadian Commercial Arbitration Code and BITs conducted under UNCITRAL Arbitration Rules or commercial arbitration, which allow review of awards by the municipal courts.

The problems arising from resorting to arbitration, especially under the ICSID Convention, can be summarised as follows: a. Conflict of interest between the capital exporting and importing states – while the latter would like to control over their natural resources as provided in various instruments including the General Assembly Resolution of 1962 on Permanent Sovereignty over Natural Resources and Charter of Economic Rights and Duties of States, 1974 and resolution of disputes in national courts; the former prefer international tribunals and the right to protect their investments. b. The possibility of parallel proceedings and forum shopping arising from contract claims and treaty claims, especially the fact that there is no doctrine of judicial precedent or lis pendens in international arbitration. c. The conflict between municipal law and international law on the one hand and that of public law and private law on the other.

The exercise of sovereign rights is within the purview of municipal and international law, but commercial transactions between states with private individuals is regulated by private law.

Indeed the relationship between municipal and international law in this context is unsettled.

Absolute renvoi to municipal law runs afoul of the principle that international law governs the characterisation of an internationally wrongful act. d. The regulatory powers of states – environmental, development goals, labour and human rights - may be restricted by investment treaties. e. Corporate governance issues – Depending on the size and nature of an investment, investments ought to meet or exceed national and internationally accepted standard of corporate governance for the sector involved, in particular for transparency and accounting practices; investors should make available to the public any investment contract or agreement with the host state government(s) involved in the investment authorisation process, subject to the redaction of confidential information. Similarly, investors should publish all information relating to payments made to host state public authorities, including taxes, royalties, surcharges, fees and other payments, among others. f. Corporate social responsibility – in countries like Nigeria, there is no statutory provision on corporate social responsibility on a general scale other than provisions in corporate governance codes. The BIT ought to impose duties on the investors in this regard. g. Private nature of arbitral proceedings and the issue of parties to the proceedings.

Investor-state arbitration is generally between parties to the agreement without taking into account the interest of non-disputing parties and the public.

All these challenges/concerns have led to movement from mere disclosure of information by parties in the investment treaties to transparency in arbitral proceedings. More fundamentally, how do we balance the interests of the state, interest of the private investors and that of the public?

Transparency It is against this background that ‘transparency’ has become a major issue in investor-state arbitration. It is an evolving concept and its ramifications unsettled. An examination of the older BITs (UK Model Text of 2005, US 1994 and Model Dutch BIT [signed with Nigeria]) shows that there was no provision on transparency.

However, in the US Model BIT 2004, there is a provision on transparency. It is noteworthy that the provisions on transparency in the US

Professor Paul Obo Idornigie SAN

Model BIT 2012 are more detailed than that of 2004. It would seem, therefore, that since almost every country is now both capital importing as well as capital exporting, more disclosures are mandatory, or at least expected in the public interest.

Transparency can be seen from many perspectives – expressly providing for the rights of states to regulate, minimum standards for human rights, environment and labour, corporate social responsibility, and pursuit of development goals.

This also includes the publication of information by host States on any investment contracts or agreements with an investor involved in the investment authorisation process, subject to the redaction of confidential business information, and making available to the public all information relating to payments made to host state public authorities, including taxes, royalties, surcharges, fees and all other payments by the investors.

Another perspective is transparency of arbitral proceedings – notice of intent, notice of arbitration, pleadings, memorials, briefs, transcripts of proceedings, orders, awards and decisions of the tribunal to be made available to the public.

Similarly, hearings should be open to the public without prejudice to protected information.

In the case of ICSID arbitration, the level of confidentiality and transparency is determined by the agreement of the parties, the applicable treaty and the decisions of the Tribunals.

Examination of the transparency provisions in the Four Instruments a. ICSID Arbitration Rules, 2006 Rule 37(2) of the ICSID Arbitration Rules provides thus: (2) After consulting both parties, the Tribunal may allow a person or entity that is not a party to the dispute (in this Rule called the “non-disputing party”) to file a written submission with the Tribunal regarding a matter within the scope of the dispute.

In determining whether to allow such a filing, the Tribunal shall consider, among other things, the extent to which: (a) the non-disputing party submission would assist the Tribunal in the determination of a factual or legal issue related to the proceeding by bringing a perspective, particular knowledge or insight that is different from that of the disputing parties; (b) the non-disputing party submission would address a matter within the scope of the dispute; (c) the non-disputing party has a significant interest in the proceedings.

The Tribunal shall ensure that the non-disputing party submission does not disrupt the proceeding or unduly burden or unfairly prejudice either party, and both parties are given an opportunity to present their observations on the non-disputing party submission.

The ICSID Tribunals in BIWATER GAUFF (TANZANIA) LTD v TANZANIA AND SUEZ, SOCIEDAD GENERAL DE AGUAS DE BARCELONA SA and INTERAGUA SERVICIOS INTEGRALES DE AGUA SA v ARGENTINE REPUBLIC have allowed NGOs that met these requirements to participate in investment arbitrations as amici curiae. However, in AGUAS DEL TUNARI, S.A. v BOLIVIA,

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the Tribunal refused to allow NGOs to participate as amici on the ground that party consent was necessary, and the parties did not consent. b. UNCITRAL Arbitration Rules, 2013 The UNCITRAL Arbitration Rules, 2013 incorporates the UNCITRAL Rules on Transparency in Treaty-Based Investor-State Arbitration.

According to UNCITRAL: With the adoption of the UNCITRAL Rules on Transparency in Treaty-based Investor-State Arbitration (the "Rules on Transparency") in 2013, a new article 1, paragraph 4 was added to the text of the Arbitration Rules (as revised in 2010) to incorporate the Rules on Transparency for arbitration initiated pursuant to an investment treaty concluded on or after 1 April 2014. The new paragraph provides for utmost clarity in relation to the application of the Rules on Transparency in investor-State arbitration initiated under the UNCITRAL Arbitration Rules. In all other respects, the 2013 UNCITRAL Arbitration Rules remain unchanged from the 2010 revised version. c. UNCITRAL Rules on Transparency in Treaty-Based Investor-State Arbitration, 2014 The Rules comprise a set of procedural rules that provide for transparency and accessibility to the public of treaty-based investor-State arbitration. The Rules on Transparency are also available for use in investor-State arbitrations initiated under rules other than the UNCITRAL Arbitration Rules, and in ad hoc proceedings.

More specifically, i. Art 1 - Scope of Application – the Rules apply to investor-state arbitration initiated before and after 1 April, 2014. ii. Art 2 – Publication of information at the commencement of arbitral proceedings – notice of arbitration to the repository [Secretary General of the UN or an institution named by UNCITRAL] and repository to make public the information. iii. Art 3 – Publication of documents – notice of arbitration, the response to the notice, pleadings, written submissions, export reports and witness statements, etc. to be made available to the public. iv. Art 4 – Submission by a third party – after consultation with the disputing parties, the arbitral tribunal may allow a non-disputing party to file a submission. v. Art 6 – Hearings – except where there is a need to protect confidential information or the integrity of the arbitral process, hearings shall be in public. d. UN Convention on Transparency in Treaty-Based Investor-State Arbitration, 2015 The Convention is an instrument by which Parties to investment treaties concluded before 1 April 2014 may express their consent to apply the UNCITRAL Arbitration Rules on Transparency.

According to the United Nations Information Service: The Mauritius Convention on Transparency aims at providing States and regional economic integration organisations that so wish, an efficient mechanism for making the UNCITRAL Rules on Transparency in Treaty-based investor-State Arbitration (the "Rules on Transparency") applicable to investment treaties concluded before the Rules entered into force on 1 April 2014.

The Rules on Transparency provide a set of procedural rules that ensure transparency and public accessibility to treaty-based investor-State arbitration, the proceedings of which have traditionally been conducted behind closed doors.

Together with the Rules on Transparency, the Mauritius Convention on Transparency takes into account both the public interest in such arbitrations and the interest of the parties to resolve disputes in a fair and efficient manner. It is expected that the Convention will significantly contribute to enhancing transparency in investorState dispute resolutions. i. Art 2 – Application of the UNCITRAL Rules on Transparency – to any investor-state arbitration, whether or not initiated under the UNCITRAL Arbitration Rules, in which the respondent is a party or the claimant is a State that has not made a relevant reservation. Furthermore, the parties to the Convention agree that a claimant may not invoke a Most Favoured Nation (MFN) provision to seek to apply or avoid the application of the UNCITRAL Rules on Transparency under the Convention. ii. Art 3 – Reservations – a party may declare that it shall not apply the Convention to investorstate arbitration under a specific investment treaty identified by title and name of the contracting parties to that investment treaty, among others. iii. According to UNCITRAL: Together with the Rules on Transparency, the Convention takes into the account both

the public interest in such arbitration and the interest of the parties to resolve disputes in a fair and efficient manner. The Convention foresees the Secretary-General of the United Nations as performing the repository function, through the UNCITRAL secretariat.

Examination of the UNCTAD Handbook, 2012 The Handbook contains several provisions.

It is intended to provide practical and userfriendly information to negotiators of International Investments Agreements (IIAs) for the purpose of concluding agreements with national policy objectives. It addresses several areas, provides model clauses and gives a commentary on the said clauses. In the commentary, examples are shown from several jurisdictions. Standard clauses are provided in addition to the one on ‘transparency’.

Art 3.8 Transparency This provision establishes State transparency obligations. This provision has historically been drafted to enable the investor and its home State to become acquainted with the host State’s regulatory framework and the process of domestic rulemaking affecting investments.

Recent formulations have also included provisions regarding direct exchange of investment-related information between treaty Parties.

The traditional objective of this provision is to create for investors a more predictable institutional framework within the overall investment climate.

The common elements include: a) Making information publicly available i. Laws and regulations ii. Administrative procedures, administrative rulings, judicial decisions, and international agreements iii. Draft or proposed rules b) Exchange of information i. Intent to pro-actively exchange information ii. Obligation to respond to information requests c) Inserting words to expand or limit host State obligations d)Exclusion of State transparency obligations from investor-State arbitration.

Examination of the International Institute for Sustainable Development (IISD) Model International Agreement on Investment for Sustainable Development – Negotiators’ Handbook, 2006 The thrust of this instrument is to set a positive negotiating agenda for sustainable development.

The publication provides both the text of the model agreement and a commentary on each article. There are several provisions on anticorruption, corporate governance, corporate social responsibility, investor’s civil liability, maintenance of environmental, labour and human rights standards and publication of information. More specifically, Art 46 of the Handbook deals with transparency.

African countries are urged to use this IISD Negotiators’ Handbook.

Transparency – UNCTAD Series on Issues on International Investment Agreements (IIAs) According to UNCTAD: The aim of this paper is to update the first edition of UNCTAD's Pink Series paper on transparency. It seeks to examine (i) the way in which traditional transparency issues have been addressed in international investment agreements (IIAs) since 2004, (ii) the emergence of

investor responsibilities as a consideration within transparency issues, and (iii) the introduction of a transparency dimension into investor-State dispute settlement (ISDS). In analysing these issues, this paper outlines possible sustainable development implications of the different transparency-related formulations used in IIAs and points to some of the most progressive provisions that are appearing more frequently in investment instruments.

This study focused particularly on transparency in ISDS and the implications of this conceptual shift manifested in the dispute resolution context.

It also considers transparency concerns as a component of a more generalised interest in the impact of procedural matters in ISDS. A key issue is the appearance of transparency and public participation-related provisions in recent IIAs and the sustainable development implications of such approaches.

Examination of the SADC Template In a bid to enhance transparency, the SADC has developed a Template to assist in negotiating BITs. The Template provides for • Common Obligation against Corruption • Compliance with Domestic Law • Provision of Information • Environmental and Social Impact Assessment • Minimum Standards for Human Rights, Environment and Labour • Corporate Governance Standards • Investor Liability • Transparency of Contracts and Payments • Right of States to Regulate • Right to Pursue Development Goals • Transparency of Investment Information In the context of dispute settlement, Article 28, Part 5 of the Template deals with state-statedispute settlement while Article 29 deals with investor-state dispute settlement. As has been stated, quite unlike the provisions in other BITs were state-state dispute settlement essentially deals with the application and interpretation of the BIT, Article 28 of the Template contemplates state-state dispute in relation to interpretation and application of the BIT and claim for damages for alleged breach of the BIT on behalf of an investor or investment.

In consonance with the practice in Australia, South Africa, Brazil and Canada, Article 29 of Template contemplates an opting out of investor-state dispute settlement mechanism.

Article 29.14 provides for submissions by Non-Disputing State Party, Article 29.16 for Amicus Curiae Submissions and Article 29.17 for Transparency of Proceedings. Thus, under Article 29.17, the Notice of Intent, the Notice of Arbitration, pleadings, memorials, briefs, written submissions shall promptly be made available to the public and the non-disputing State Party.

African countries are enjoined to adopt the SADC Template in their negotiations.

Examination of Transatlantic Trade and Investment Partnership (TTIP) Officials from the European Union and the United States gathered in Brussels for the 12th round of negotiations over the Transatlantic Trade and Investment Partnership (TTIP) from February 22 to 26. Among the topics discussed in February was the investor–state dispute settlement (ISDS) mechanism. The EU is proposing an Investment Court System (ICS) composed of a standing tribunal and an

appeals mechanism. But the United States is not ready to abandon its long-standing ISDS model recently reproduced in the Trans-Pacific Partnership (TPP).

Due to jurisdictional challenges, it may be difficult to establish an investment court to preside over private transactions. In the public law realm, it is possible hence the standing Courts in the ICJ, EU, AU and ECOWAS. Other than dealing with colonial relationships only, African countries either at the sub-regional or regional levels should enter into partnerships like the TTIP or the TPP. The Impact on African Economies Having examined generally the issue of transparency in ISDS, what are the options open to Africa. Given our stage of development, it is strongly recommended that any dispute resolution mechanism adopted should take into account the following: - Exhaustion of Local Remedies as provided in the Indian BIT. - Akin to this is that disputes should be resolved by state courts/tribunals only.

- There should be movement from BIT to RITs or MITs at the sub-regional or regional levels as done in the ASEAN countries.

- Retention of ISDS with more disclosures in the BITs and transparency in arbitral proceedings - Adopting the US Model BIT 2012, where appropriate.

- Drafting of standard BITs or RITs or MITs. I am aware that Nigeria is drafting one which takes into account the issues canvassed in this paper.

- African countries are urged to adopt the UCITRAL Arbitration Rules, 2013 and the Mauritius Convention to allow for more transparency in investor-state arbitration.

Conclusion As long as there is conflict of interest in International Investment Law, the issue of transparency will remain unsettled. From the FCN to the modern BITs, we have produced some wines in new bottles. The capital-exporting and capital-importing countries should see themselves as partners in progress. Indeed, the boundaries between the two is becoming blurred. There is need therefore to constructively engage each other.

Every country should have a right to regulate, promote its developmental goals, observe international instruments and negotiate BITs instead of a template being foisted on a sovereign country.

African countries are urged to sign and ratify the Mauritius Convention on Transparency and ensure that the UNCITRAL Arbitration Rules 2013 are incorporated in their Arbitration Rules.

In passing, I would like to say that on the issue of state and sovereign immunity, we should draw a line between a sovereign act, properly so called and a commercial act. We should be guided by the nature and purpose of the transaction acta jure gestionis and acta jure imperii as provided in the UN Convention on Jurisdictional Immunities and Their Properties, 2004. The question is should it be restrictive or absolute immunity? It depends.

Being a Paper presented by Professor Paul Obo Idornigie, SAN, PhD, FCIS, C.Arb at the 1st ICC Africa Regional Arbitration Conference. Held in Lagos, Nigeria on 19 – 21 June, 2016.

28.06.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

We Hold Your Brief JUDE IGBANOI jude.igbanoi@thisdaylive.com

Dear Counsel, I am really angered by the attitude of some lawyers and I feel that bringing this unwholesome behavior to your notice, would help draw attention to these excesses by some of our colleagues.

I am currently representing a client in a civil case. The matter is in court and is being heard, but my opponent on the other side representing the claimant has on three occasions made unsavoury comments in newspapers and on television.

He has continued to malign my client, saying he is not a fit person to do business with, and that he has been defrauding whoever he transacts business with. The matter before the court does not border on any business transaction. It arose from a disagreement over his relationship with a female friend.

But the other counsel keeps uttering negative and abusive remarks about my client. My client is not a Nigerian and I am really bothered about the impression he is being given of our lawyers and our legal system.

When I tried to point this out in court, the Magistrate issued a mild admonition.

While I do not think it warrants my lodging a complaint at the NBA, what else do you think I should do?

Barth Ekiuwa Lagos

Dear Mr. Etiuwa, The legal profession is a noble and dignifying one.

But some lawyers have chosen to belittle or demean the profession in breach of their oath.

Let me remind you of the provisions of the Rules of Professional Conduct for Legal Practitioners, 2007 which expressly provide for a strict code of behaviour for all lawyers. For instance Section 33 provides that ‘A lawyer or law firm engaged in or associated with a civil action shall not, while litigation is anticipated or pending in the matter, make or participate in making any extra-judicial statement that is calculated to prejudice or interfere with, or is reasonably capable of prejudicing or interfering with, the fair trial of the matter of the judgment or sentence thereon.’

Other sections of the Rules like 46(1) and (2) and 47 also make similar provisions.

I would therefore advice that you write a very strong protest letter to the Magistrate and if possible read it in open court and ensure that you are heard on record.

Should this fail, I see no other option but for you to lodge a complaint to the local Branch of the NBA.

The Absentee Witness In a criminal case, the Defence counsel had just moved for continuance on the grounds that a Defence witness was not present in court. The rest follows: By the Court: Well why don't we call the list of witnesses and see who's here?

[The list of witnesses was called in open court and the supposedly "absent" witness answered "Present"] By the Defence Attorney: Your Honor, I move for continuance on the grounds of surprise. He promised me he wouldn’t be here.

The following are actual statements placed on insurance forms where the car's driver attempted to summarise the details of their accident in the fewest words possible Coming home I drove into the wrong house and collided with a tree I don't have.

The other car collided with mine without giving any warning of its intentions.

I thought the window was down, but I found out it was up when I put my head through it.

In my attempt to kill a fly, I drove into a telephone poll.

I had been shopping for plants all day and was on my way home. As I reached an intersection, a hedge sprang up, obscuring my vision and I did not see the other car.

I had been driving for 40 years when I fell asleep at the wheel and had an accident.

As I approached an intersection a sign suddenly appeared in a place where no stop sign had ever appeared before. I was unable to stop in time to avoid the accident.

Lawyers, Paralegals Urged on Suspects’ Rights Protection Yinka Olatunbosun With a view to reforming the justice sector in Nigeria, the Justice for All Programme (J4A) held a one-day workshop at Ikeja, Lagos to train lawyers and paralegals who are volunteers in the Lagos Legal Advice Scheme.

The scheme provides free legal advice and support while protecting legal entitlements and rights of persons in police custody. Currently, the scheme has been extended to nine police stations in the state, it aims to inspire public confidence, transparency and police accountability.

The workshop is the second of its kind. The morning session opened with the first presentation by the Executive Programmes Director, LEDAP, Adaobi Egboka on the theme, ‘’Detention, Detainee and Accountability Tools’’ which served as an eye-opener to the volunteers on

how to effectively appropriate the instrument of the law in seeking justice for suspects.

In the second presentation by human rights’ lawyer, Nathaniel Ngwu, the lawyers and paralegals were reminded about the conditions that they must examine while monitoring police stations which include the treatment of suspects, protection measures and other material conditions.

Amongst other tasks, monitors were urged to report on the conditions of the cell, access to food and medication, means of restraint of suspects, waste management, overcrowding, access to lawyers and suspect’s third party of his choice. In cases of alleged ill-treatment of suspects, the monitors are to gather relevant information such as the full identity of the person, the date and place where the allegation was observed and the detaining authorities.

In the last presentation by Chibogu Obinwa, the volunteers were encouraged to persist in the scheme in spite of the challenges because volunteering encourages civic responsibility and has a lot of long-term benefits.

Meanwhile, there had been reports of detention of suspects outside their cells in abandoned buildings where they are tortured by gunshots to extract confession for a crime under investigation. In addition, some DPOs have been difficult to deal with in the course of ensuring that rights of suspects are respected at their stations. The cheering news in the scheme came from the Mushin Police Station (Area D) where the DPO is reported to have become more receptive to suspects’ right protection.

The scheme is sponsored by the UK Department for International Development (DFID) with support from civil societies for effective policing services in accordance with international human rights standards.

GROUP CONDEMNS NYSC’S IMPOSITION OF PRE-MOBILISATION FEES ON PROSPECTIVE CORPS MEMBERS, SAYS IT’S ILLEGAL CONTINUED FROM PAGE 4 CAIFAL said NYSC should be made to account for the monies so far realised from the previous collections, and that the perpetrators should be punished according to the Law. “The Perpetrators of these fraudulent charges have claimed that the fees collecting project was a Public Private Partnership (PPP) arrangement. The question is: does that confer the right on them to abuse their offices and violate the Law setting up the NYSC, and even the Constitution?” it queried.

According to them, NYSC claimed to have entered into a Public Private Partnership arrangement that gave Sidmach 70% or 60% of the proceeds and the balance to

the NYSC, but added that no money has been remitted into the Federation Account or the NYSC Account.

“Our investigation also revealed that the Finance Department of the NYSC has vehemently denied the illegal collection of those fees and claimed ignorance of where the money so far realised was kept or how it was expended.

“This instant NYSC fraud is worse than the similar alleged scam cases, currently been prosecuted by the “new” EFCC. The service provider, Sidmach, claimed that only N1.3 Billion has so far been realised from the fees so far collected.

The NYSC declared that it mobilised between 300,000 and 350,000 Corps Members per year, which amounts to 700,000

for 2014-2015 batch, so, if the 2016 batch A is added thereto, that is about 800,000 to 900,000 Mobilised Corps Members, multiplied by N3,000 paid by each Participant, we have about N2.4 Billion Naira. Where is the Money?

“The N1,000 re-deployment fees collected from any of the Mobilised Corps Member, who want to be re-deployed, was not been taken into consideration when we arrived at the N2.4 billion stated above”, they stated.

While calling on security agencies to investigate the alleged fraud and prosecute the culprits, the group noted that such infractions are not limited to NYSC but are common in government ministries and agencies all over the country.

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28.06.2016

THE LEGAL PRACTITIONER’S STAMP/SEAL POLICY AND LEGAL ISSUES ARISING THEREIN

CONTINUED FROM PAGE 6 in this way: The well laid down position of the law is that when counsel is briefed to handle a case and he accepts the brief, he has authority to decide within his own knowledge of the law, how to conduct the case, and the client is bound by how the counsel conducts the case. The remedy open to the client if he is not satisfied with the counsel is to withdraw the brief or sue for professional negligence if that appears to be the case Thus, where an objection is raised, if the party defaults from making an application, he would bear the consequences. We rely on the case of YARI v ABUBAKAR (supra).

The second scenario, is where a lawyer in a suit has already affixed his stamp/seal should he still be required to affix same on other processes filed subsequently in that suit? Bearing in mind that the stamp/seal is to authenticate the status of the lawyer, which has been satisfied in the earlier process filed, should he be required to further authenticate his status in the same proceedings?

Our view is that affixing the stamp/ seal is not just to authenticate the status of a lawyer but also to give validity to the said process which in our view is the intendment of Order 10(3) of RPC, which states that; If, without complying with the requirements of this rule a lawyer signs or files any legal documents as defined in sub-rule 2 of this rule, and in any of the capacities mentioned in sub-rule (2), the document so signed or filed shall be deemed not to have been properly signed or filed (Emphasis supplied) Can a Lawyer “Borrow” and Affix the Stamp/Seal of another Lawyer Who Did not Sign the Legal Document?

In the case of OGBERE v ORUTALA & ORS, EHC/3/2016, the Notice of Preliminary Objection which was signed by counsel was affixed with the stamp/seal of another counsel listed in the team of lawyers who did not append his signature on the process.

In resolving this issue, the Court held thus; It is not a requirement of Rule 10 that the seal and stamp must be that which bears the name of the Legal Practitioner who signed the process. It suffices if the seal and stamp belong to any Legal Practitioner listed among those that represent the Party.

With greatest respect and without prejudice to the finality of the above decision barring appeal, by law we are authorised to critique in an appropriate forum, decisions of Court, albeit respectfully. So held the Supreme Court in the case of ADIGUN v. A.G. OYO STATE (No.2) (1987) 2 NWLR (Pt 56) 197@215 thus; The judgments of a court should not be treated with sacred sanctity, once it gets to the right critical forum We are afraid that the decision of the Court might sanction the practice of “borrowing” a stamp and seal which would in effect defeat the intendment of the RPC. This is because, it is the status of the lawyer who signs the process that is to be authenticated. The other lawyers whose names appear on the legal document, but who did not sign, are not required to authenticate their status as lawyers.

We hope the decision of the Court is further tested on appeal by the parties in the action.

NBA President, Augustine Alegeh SAN

When Should an Objection be Raised on the Failure/Omission to Affix a Stamp/Seal?

If a matter or process has been filed, when should an objection be taken on the failure to affix a stamp/seal? Some counsel are of the view that the omission, is a “dynamite” which should be raised at the earliest opportunity.

Others are of the view, that it should be raised at the terminal stage of the proceedings.

In the case of WIKE v PETERSIDE (supra) 512, the issue was raised at the Court of Appeal for the first time and the Supreme Court held that it was raised belatedly and acceding to the request would amount to enthroning technicality at the expense of substantial justice.

By legal prescription, a party who seeks to challenge an irregularity, has a duty to raise it at the earliest opportunity and before taking a fresh step. Otherwise, he would be deemed to have waived the irregularity and is thus foreclosed from challenging it. We rely on the cases of KWAA v KWAKWA 3 WACA 176, KATSINA LOCAL GOVERNMENT AUTHORITY v MAKUDAWA (1971) 7 NSCC

119, ODU'A INVESTMENT CO. LTD VS TALABI (1997) 10 NWLR (PT 523)1 By the decision in WIKE v PETERSIDE, the failure to affix a stamp/seal is an irregularity and should be raised timeously.

However, the fact that the failure to affix stamp/seal is an irregularity does not mean that in the event that an objection is taken at the earliest opportunity, the Court can look away and allow proceedings to continue in the interest of justice or on the ubiquitous legal policy that the sins of counsel should not be visited on the litigant.

This was the view of Peter-Odili, JSC in YARI v ABUBAKAR (supra)@109-110 wherein the learned Justice held thus: As to infringing the right of a litigant to appeal where the error or lapse of his counsel to stamp and affix his seal on a legal document it must be stated that the rights of a litigant who sought a legal practitioner is not open ended or rights outside the Laws of Practice and procedure or rules of court. This in line with what this court stated per RhodesVivour, JSC., in Ngere v Okuruket ‘XIV’ (2014) 15 SC (PT II) 1 at 31

THE LATE HONOURABLE JUSTICE NIKI TOBI THROUGH THE CASES - A TRIBUTE ING & PETROCHEMICAL CO. (2005) 6 NWLR (Pt. 921) 393, is best appreciated. Justice Tobi was privileged to have sat on both panels, and his concurring opinions in both decisions, said to be diametrically opposed to each other, offer an illuminating insight as to the ‘divergent’ positions taken in the lead, in the two cases. But that is another matter altogether, and outside the remit of this tribute.

Which inevitably brings to the fore what arguably were his ‘flaws’.

As with everything human, he was flawed a few times in his affecting erudition. One instance which readily comes to mind is his ‘patriotic zeal’ in calling for the Nigerian judiciary to adopt ‘home-grown jurisprudence’ (not His Lordship’s exact words). The story goes thus: Justice Tobi seemed to have ‘an axe to grind’ with ‘transmuting’ English rules and practice in interpreting Nigerian laws. Even as he

appreciated ‘our jurisprudence, as an off-shot of the common law tradition of England ‘ (ONAGORUWA v IGP, Supra at p.640) he wrote strongly against reliance on English authorities in at least two notable cases: CHIGBU v TONIMAS NIG. LTD [2006] 9 NWLR [Pt.984] 189 at 213 and CARRIBEAN TRADING & FIDELITY CORPORATION v NNPC [2002] 5 SC [Pt. 1] p.21. In CARRIBEAN TRADING v NNPC, Tobi JCA (as he then was) wrote in his characteristic flourish: “English is English. Nigerian is Nigerian. The English are English.

So also the Nigerians are Nigerians.

Theirs are theirs. Ours are ours. Theirs are not ours. Ours are not theirs. We cannot therefore continue to enjoy this borrowing spree or merry frolic at the detriment of our legal system.

We cannot continue to pay loyalty to our colonial past with such servility or servitude. After all, we are no more in

When the Failure to Affix the Stamp/Seal is not the Fault of the Lawyer?

What would be the effect, if the lawyer has applied for the stamp/ seal but this has not been provided, would that it make the legal document irregular? In the case of ADEWALE v ADEOLA (2015) LPELR-25972, this issue was resolved thus; The established fact that learned counsel for the appellant has applied for the issuance of the NBA approved seal or stamp to him, cannot qualify the process signed and filed by him in this appeal to be deemed as properly signed or filed. The provisions of Rule 10(1) of the Rules of Professional Conduct are very clear and unambiguous.

What it requires is that the seal or stamp be affixed on the process before it can be deemed as properly signed or filed. The submission of learned counsel for the appellant that he has applied for and is yet to be issued his seal or stamp suggests that he is explaining why the notice of appeal and the other processes signed by him do not bear his seal or stamp. Such a submission is not tenable in view of the clear requirement of Rule 10(1) of the Rules of Professional Conduct.

Putting the above decision in proper contextual perspective, it would seem that the counsel did not furnish any evidence of payment but merely made submissions that he has paid it is trite law, that submission of counsel is not a substitute for evidence. However, it is our considered opinion that if there is evidence to prove payment, then it would suffice and satisfy the provisions of Order 10 of the RPC. This is because, if a lawyer has satisfied every condition for the issuance of the stamp/seal but same has been held up due to administrative lapses or bottlenecks, the lawyer should not be the one to suffer.

Somina Peter JohnBull is a Partner at Somina & Gibson Associates, Yenagoa, Bayelsa State.

CONTINUED FROM PAGE 5

Slavery.”

On appeal to the Supreme Court, Ayoola JSC (with whom, Mohammed, Iguh, Katsina-Alu and Ejiwunmi JJSC concurred) pointed out the error in that nationalistic fervor: “Nigeria does not cease to be Nigeria because it has chosen a particular mode for ensuring the procedural completeness of its legal system, just as Nigerian does not cease to be Nigerian by choosing the English language, in which, incidentally, the learned Justice had flawlessly expressed himself, as the language of official communication. Our legal system draws much of its strength from being part of a common law system having its roots in the past while remaining organic. Our efforts should be directed to how best to build on the legacy of that great system of laws rather than to a denigration of the past we have built on and are building on. For my part, while this appeal will be dismissed, I

do not endorse the view of the court below in the passage last quoted from Tobi, JCA's judgment which will sentence our legal system to unnecessary parochialism”.

The gist of this writer’s piece being that Justice Tobi unreservedly reserved the right to be wrong, and human, in some of his well-articulated decisions.

Thankfully, these were few and far apart (if the fact that just a handful of his decisions were upturned on appeal, is any indicator), and do not in any way, and by no measure, detract from the merits, and substance of His Lordship, the Honourable Justice Niki Tobi’s immense contributions to the development of the law in this country.

In all, he was a judge’s judge. A brilliant mind, forthright Judge. May his beautiful soul rest in perfect peace.

Folabi Kuti is a Partner in the commercial law firm of Perchstone & Graeys.

28.06.2016

IMAGES/15

The 1st ICC Africa Regional Arbitration Conference was held last week from 19-21 June 2016 in Lagos. Here are some of the personalities who graced the cocktail party and conference. photos: Sunday Adigun

L-R: Chairman, International Chamber of Commerce Nigeria, Mr. Babatunde Savage, Professor Gabriel Olawoyin SAN, Chairperson, ICC Conference Planning Committee, Mrs. Dorothy Udeme Ufot SAN and President ICC International Court of Arbitration Paris, Mr. Alexis Mourre

Dr. Jacques Werner and former Attorney General of the Federation and Minister of Justice, Chief Bayo Ojo SAN

L-R: Mrs. Doyin Rhodes-Vivour, Dr. Wale Olawoyin SAN and Mrs. May Agbamuche-Mbu

L-R: Mr. Dada Thomas, Dr. Emilia Onyema and Mr. Babatunde Fagbohunlu SAN

Mr. Louis Mbanefo SAN and Mrs. Monica Mbanefo

Mrs. Funke Adekoya SAN and Dr. Mohamed Abdel

Professor Paul Idonigie SAN (left) and Hon. Justice Edward Torgbor

Chief Joe Kyari Gadzama SAN (left) and Chief Andrew Oru

Chief Sena Anthony

Mr. Osayaba Giwa Osagie and Virginie Colaiuta

Mr. Dele Oye (left) and Mr. Osaro Eghobamien SAN

Elizabeth Gore and Mr. Patrick Ikwuweto SAN

Mr. Anthony Idigbe SAN (left) and Mr. Raymond Ihyembe

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28.06.2016

Chairperson, ICC Conference Planning Committee, Mrs. Dorothy Udeme Ufot SAN and Mr. Francesco Bentivegna

Mr. Harry Matovu QC and Rukia Baruti

Hon. Justice Roli Harriman and Mr. Charles Ajuyah SAN

L-R: Mrs. Folashade Alli, Mrs. Funke Adekoya and Mrs. May Agbamuche-Mbu

NBA Executive Director, Mrs. Ifueko Alufohai and NBA General Secretary, Mazi Afam Osigwe

L-R: Mrs. Jean Chiazor-Anisere, Mrs. Morenike Obi-Farinde and Mrs. Sola Adegbonmire

Mr. Edward Luke

L-R: Mrs. Obosa Akpata, Mr. Mike Igbokwe SAN and Mr. Alex Mouka

Mrs. Dorothy Udeme Ufot SAN and Paula Hodges QC

Mr. Babajide Ogundipe (left) and Chief Bayo Ojo SAN

Mrs. Bioye Davies (left) and Mrs. Olubunmi Osuntuyi

Mr. Ayodele Akintunde (left) and Professor Taiwo Osipitan SAN

Bode Oteniya(left) and Miss Sandra Oke

Mr. Gbolahan Gbadamosi (left) and Mr. Chike Umunna

Deborah Chukwuedo (left) and Mrs. Chinwe Odigboegwu

Roseline Eshett

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T H I S D AY • TUESDAY, JUNE 28, 2016

POLITICS

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

EXECUTIVE BRIEFING

Edo APC’s Brewing Post-Primary Crisis One of the governorship hopefuls in the All Progressives Congress in Edo State, Mr. Kenneth Imansuagbon, is not happy with the outcome of the recent primary held by the party and seeks a review of the entire process. Shola Oyeyipo writes that it may not be uhuru yet for the ruling party in the state as the succession crisis may have begun afresh Osarheimen Osunbor (nine), Professor Frederick Amadausn (eight), Peter Esele (eight), Blessing Agbonmeire (five), Austin Emuan (four) and Mrs. Tina Agbarha (three) votes.

“However, going by some of the political undercurrents, the Edo State APC needs to find a way to quickly make good the words of its Publicity Secretary, Godwin Erhahon, who has assured the people that the party was working to reunite all rival groups that went into the primary to ensure victory for it at the governorship election proper.

This is because feelers coming from the aggrieved aspirants showed that, where the party damns the consequences and ignores them, even if it eventually wins the election, it would come at greater cost than going into the election without enemies from within.

Political Notes

The Clamour for Buhari’s Job Imansuagbon (second right), Chairman of the APC Appeal Committee, Hon. Opeyemi Bamidele (third from right) and other members of the panel

A

lthough there were ominous signs of possible post-primary election crisis in the Edo State chapter of the All Progressives Congress (APC), for some of the leaders of the party, however, it was best that the party remains one formidable force and supports the standard bearer, Mr. Godwin Obaseki to win the September 10 governorship election. Initially, after the party’s primary election, there was relative calm – though the deputy governor, Mr. Pius Odubu had stormed out of the venue of the primary, with the promise to reconcile aggrieved parties, it was easy to assume that the party would forge ahead.

But that was not the case last week when one of the leading aspirants in the just concluded APC primaries, Mr. Kenneth Imansuagbon insisted that the elections must be cancelled or else the ruling party stands to face the wrath of the electorate at the general election. He alleged that the exercise was scientifically manipulated in favour of the winner, Mr. Obaseki. Imansuagbon told THISDAY that watermark technology was deployed to rig the election, saying “There must be a forensic examination of the ballot papers. That is the only thing I can accept.”

According to the renowned philanthropist, “Where the party may not be willing to carry out a forensic analysis of the voting material, the election should be cancelled on the grounds that most of the other aspirants are not satisfied with the process.”

Reacting to statements credited to the likes of the Police Commissioner in the state, Mr. Chris Ezike, former State House of Assembly Speaker, Mr Thomas Okosun, one of the aspirants, Mr. Peter Esele and Governor Adams Oshiomhole that the election was free and fair, Imansuagbon said he had approached the Hon. Opeyemi Bamidele-led election appeal committee to reverse the election in the interest of APC. “No, it was not (free and fair). It was

scientifically and electronically manipulated.

Watermark technology was used to manipulate the election. You will not see it during the day. You will only see evaporated ink that will vanish in two minutes. One should ask why despite the fact that accreditation finished around 2pm, voting was delayed till around 7pm. Under the floodlight they had allocated the votes to Obaseki.

“We had heard that he was going about saying he was going to win with over 1600 votes, but I considered it mere rumour – that the margin of victory for anyone, who would win should not be more than 20 - 30. Even

A major bone of contention before the primaries was whether or not the outgoing Governor Oshiomhole would throw his weight behind Obaseki’s candidature and whether or not his support would enable him to clinch the party’s ticket. Indeed, when the party concluded the election, Obaseki, who was chairman of the Edo State Economic and Strategy Team, won

if Oshiohmole himself ran, he couldn’t have polled that much in an election that has the deputy governor, who also controls the party structure contesting. Even during my days in the Almighty PDP, where we had just a little above 700 delegates, I polled 210. How can someone say out of over 2800 delegates I polled just 247? How does that add up?” he asked.

He said talks about post-primary reconciliation is an exercise in futility as the only option is for the party to reverse the governorship primary or test the popularity of other aspirants at the general election, which could mean that some of the grumbling APC aspirants might be teaming up against Obaseki, who they see as enjoying some form of support from Governor Oshiomhole.

“We are not interested in reconciliation. We are approaching the Hon. Bamidele appeal committee. We are praying them to cancel the election and do a fresh primary. If they don’t do it, what will happen to the APC will be disastrous. If the appeal does not take our plea, then we will take our protest to the court of the people.

“When Anenih rigged me out in the Peoples Democratic Party, I told him he would lose and the party lost. So, the Bamidele committee should cancel the election on the grounds of immorality,” Imansuagbon insisted.

A major bone of contention before the primaries was whether or not the outgoing Governor Oshiomhole would throw his weight behind Obaseki’s candidature and whether or not his support would enable him to clinch the party’s ticket. Indeed, when the party concluded the election, Obaseki, who was chairman of the Edo State Economic and Strategy Team, won.

He polled 1, 618 votes to defeat Governor Adams Oshiomhole deputy, Pius Odubu, who scored 471. Imansuagbon polled 247, former Minister of State for Works, Chris Ogiemwonyi (137), Major General Charles Airhiavbere (rtd) (11), Emmanuel Arigbe-Osula (10), Professor

There is an undercurrent currently playing out among some political gladiators in the North ahead of 2019. The Peoples Democratic Party (PDP) will pick its presidential candidate from the North. The ruling All Progressives Congress (APC), may do likewise too. It is however not clear whether or not President Muhammadu Buhari will opt for a second term. But people are already scheming or are perceived to be scheming ahead of the 2019 presidential election and this is mostly prevalent in the North.

A few weeks back, a former Kano State governor and senator representing the Central district, Senator Rabiu Kwankwaso visited Lagos. His mission was reportedly to help some Northern victims of the recent Mile 12 clash.

He facilitated the release of some of them from police custody and provided them with financial supports to return to different parts of the North where they came from. But the high point of the visit was when he visited the Sarkin Hausa Agege.

He later met the Hausa community at Capitol Hotel, Capitol Road, Agege, Lagos, where he preached to his people to maintain peace with their host communities. His ecstatic crowd of supporters came out en mass and described him as very fit to be president in 2019.

But weeks later, Kwankwaso was asked to desist from playing the gambit of 2019 by portraying himself as a people’s man by the National President of Arewa Youth Consultative Forum (AYC), Alhaji Yerima Shettima, who said “Kwankwaso should stop playing the fake superman.”

Shettima said the lawmaker was in Lagos during his recent visit to Hausa victims of the Mile 12 clash, on popularisation visit ahead of 2019 rather than genuine concern for the people, noting that: “Let Kwankwaso know that he cannot use Lagos as the launch pad of his 2019 political designs and blind ambition that is clearly unrealistic.”

While no one can say for sure if there won’t be pressure on the incumbent to seek a second term, it becomes important to note that the battle for 2019 is going to start early, especially in view of the prevailing disenchantment in the land. Thus, Aso Rock may not be vacant as at today, certain forces are billed to compel its vacancy by next election as there would more of such activities in the lead up to the election.

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T H I S D AY • TUESDAY, JUNE 28, 2016

PERSPECTIVE

Federal Republic of Inequality Nigerians under President Muhammadu Buhari are not being treated equally and it’s an anathema to the nation’s professed unity, reckons Magnus Onyibe

T

he Federal Republic of Nigeria is the country we all call our own. Our country comprises about 250 tribes or ethnic nationalities with the main ones being Hausa/Fulani, Yoruba, Igbo, Kanuri, Ijaw, Nupe, Calabari, Tiv, Ijebu, lgara, Urhobo, jukun, Idoma, Fufulde, Ika Ibibio, Edo etc. In the inaugural speech of President Muhamadu Buhari on May 29, 2015, he was famously quoted as saying: “I belong to everyone, I belong to no one.”

That very welcoming and reassuring remark, which resonated very well with most Nigerians, became a quotable quote that featured in myriads of comments in the mainstream and online media, just as it also became a talking head in torrents of radio and television shows. The reason the quote was significant is quite simple.

In the run up to the 2015 general election, campaign rhetoric vaunting ethnic and regional sentiments were so rife that Nigeria became too polarised in such manner that the Hausa/Fulani in the northern parts of Nigeria were stacked behind, ex-military head of state, Muhammadu Buhari, who is from the Hausa/Fulani stock, while the lgbos, ljaws and other minority tribes in the South-east and South-south part of Nigeria queued up behind the then incumbent president, Goodluck Jonathan, who is ljaw, and one of their own.

The Yoruba in the South-west, who having had a shot at the presidency from 1999 to 2007, when ex-army general, Olusegun Obasanjo transited from prison to presidency, became the bride to be wooed by both the political forces from the north and South-south parts of Nigeria. In the end, the Yoruba aligned with the north through acceptance of the vice-president slot, which the acclaimed leader of the Yoruba, Bola Tinubu, former governor of Lagos State, conceded to a man of impeccable character, an evangelical pastor, his longtime ally and former attorney general of Lagos State, Yemi Osinbajo.

Prior to his success at the 2015 polls, President Buhari had tried and failed to successfully clinch the presidency in 2003, 2007 and 2011 but on each of those occasions that he lost, Buhari swept the votes in the core northern states like Katsina, Kebbi, Zamfara, Sokoto etcetera, sometimes garnering about 12 million votes.

Even with Yoruba’s vote in the kitty, Buhari still needed the votes from the South-east and South-south to fulfill the constitutional requirements that votes must be garnered from all parts of Nigeria for a candidate to be deemed to have won.

This is to ensure that a situation whereby a particular candidate from an ethnic group with superior numerical strength, does not ride into the presidency relying only on votes from his Kith and kin.

That’s how Rotimi Amaechi, former governor of Rivers State, the heart of South-south, now Minister of Transport and Rochas Okorocha, incumbent governor of Imo State, the ground zero of Igboland, became the game changers. With their support, substantial votes in Rivers and Imo States were brought into Buhari’s kitty that already had the Hausa/Fulani and Yoruba votes and the rest, as they say is history.

Politics is a game of strategy and democracy is also about numbers of people that politicians are able to swing to their side, which justifies the political dictum, majority carries the vote. In 2015, Buhari reached out and built bridges across many deserts and rainforests into Yorubaland as well as crossed many bridges and rivers into Igbo and lkwere/calabari mangroves and creeks and he reaped the reward of the hard work by becoming Nigeria’s number one citizen.

Now, it’s payback time. In politics as in business, settling IOUs is usually a very testy experience.

Buhari...in search of a national leader

In what many thought was a Freudian slip like the one famously made by British Prime Minister, David Cameroon about Nigeria being a ‘fantastically corrupt’ country, in the wake of the anti-corruption summit in London recently, President Buhari during an interactive session with some Nigerians and Americans on the sideline of his visit to the USA, stated that he could not be expected to treat the 95% who voted for him in the north equally with the less than 5% who voted in the South.

As expected in a multicultural multiethnic and multi-religious society, the comment got twisted and dissected with all manners of bias on online media platforms.

Unsurprisingly, many members of the elite commentariat also took the president up on the remark from the optics of the numerous ethnic and other primordial sentiments, and I thought the high level of condemnation would challenge the president to offer some clarifications but that was not the case.

With the public hue and cry about appointments so far made into executive positions, it would appear that the president is sticking to his guns – literarily – to reward mainly voters from his home base by skewing appointments in their favor. Check

In what many thought was a Freudian slip like the one famously made by British Prime Minister, David Cameroon about Nigeria being a ‘fantastically corrupt’ country, in the wake of the anti-corruption summit in London recently, President Buhari during an interactive session with some Nigerians and Americans on the sideline of his visit to the USA, stated that he could not be expected to treat the 95% who voted for him in the north equally with the less than 5% who voted in the South

out the list of appointments into sensitive and critical security, safety, intelligence and elections sector under the current regime making the rounds in the social media: (1)Inspector General of Police- North (2)Director General of Directorate of State Security Service, DSS- North (3)Chief of Army Staff- North (4)Chief of Naval staff - North (5)National Security Adviser, NSA- North (6) Chairman of Economic and Financial Crimes Commisdion, EFCC - North (7) Head of Immigration Service- North (8)Head of Customs Service-North (9) Head of Civil Defense Corps- North (10) Defense Minister- North (11)Controller of Prisons -North (12) Chairman of INEC - North Hitherto, even under military rule, the positions listed above were spread amongst people from the 250 ethnic nationalities earlier listed particularly amongst the three major groups, Hausa/Fulani, Yoruba and Igbo.

If the recent interview, claimed to have been granted Hausa service of the BBC is to be believed, the president is making a case that appointment of mostly close associates from his ethnic nationality into public offices in disregard of the provision by the Federal Character Commission is justified by the constitution, but is it?

In response to the allegation, below is a transcription of what the president is believed to have said on the radio programme: “If they will do justice to me, as an elected Nigerian president, let them look at the constitution (that) a Nigerian president works with; there are people who will closely work with me that don’t need to be taken to the senate”. The president is very correct on that count.

“If I select people whom I know quite well in my political party (with) whom we came all the way right from APP, CPC and APC, and have remained together in good or bad situations, the people I have confidence in and I can trust them with any post, will that amount to anything wrong?”

The snag here is that the men heading the security and strategic arms of government listed earlier are supposed to be professionals, not card carrying members of any political parties hence the last part of the president’s justification does not gel with the provision in the 1999 Nigerian constitution.

In any case, I suspect that the statement was made when he appointed Babachar David Lawal as secretary to the Federal government, even though it is now being presented as if it is in response to the recent appointments.

However, since the president did not specifically mention the section of the Nigerian constitution that empowers him to be tribalistic in appointments, he

must have obviously been misquoted by mischief makers, nevertheless, let’s take a cursory look at the act establishing the FCC, which is an entity constitutionally vested with the authority to ensure that a balance is maintained in appointments into federal government public and civil services amongst other functions.

Information on the website of the Federal Executive Body indicate that the Federal Character Commission was established by Act No 34 of 1996 to implement and enforce the Federal Character Principle of fairness and equity in distribution of public posts and socioeconomic infrastructure among the various federating units of the Federal Republic of Nigeria.

According to the provisions of 1999 Constitution in Sections 14 and 153, “The composition of Government of the Federation or any of its agencies and the conduct of its affairs shall be carried out in such manner as to reflect the Federal Character of Nigeria and the need to promote National unity and also command national loyalty, thereby ensuring that there shall be no predominance of persons from a few states or from a few ethnic or sectional groups in that government or in any agencies.”

From the law cited above, the grundnorm guiding the principle of federal character is clear. With the tension between the executive and the legislative arms of government, rearing its ugly head again, one can never tell what could become the ‘banana peel’ or Achilles’s heels of the president. I personally do not believe that there is a compliance desk presently in Aso Rock villa, otherwise these political ‘blind spots’ could have been spotted from afar and avoided by the president whom I believe listens.

Here is my evidence that President Buhari listens: During the campaign for the presidency, opponents dug up then presidential candidate, Buhari’s not too palatable record as a military dictator, who convicted journalists like Nduka Irabor and Tunde Thompson retrospectively and authorised the execution of drug offenders with similarly back dated laws when he was head of state.

In an article titled: “When A Public Mistake Requires An Old Fashioned Apology”, published on the back page of THISDAY newspaper and other mainstream and online media platforms, I suggested that as a leader, Buhari and his opponent, Goodluck Jonathan should apologise to Nigerians for their past mistakes. None of the candidates heeded the advice at the time, but when Buhari later met Tunde Thompson, he reportedly personally expressed his regret even though he defended his actions that time as being an inevitable decision that had to be made and did not admit guilt, which was fair enough.

Amongst other demonstrations of ability to be a listening leader, President Buhari, who initially resisted the removal of fuel subsidy, later acquiesced to it. He was also against devaluing the naira but our currency is now floating and he threatened to apply deadly force in dealing with Niger Delta militants, but he has similarly backed down, allowing the application of dialogue for peace to prevail. To me, these are some of the critical milestones that signify accommodation of other views, so I won’t join the list of critics classifying President Buhari as an autocratic leader.

-Onyibe, a development strategist and former commissioner in Delta State is an alumnus of Fletcher School of Law and Diplomacy, Tufts University, Massachusetts, USA NOTE: Interested readers should continue in the online edition on www.thisday.com

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TUESDAY, JUNE 28, 2016 • T H I S D AY

FEATURES

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

United against Cancer

Recently, captains of industry converged on Lagos House, Alausa, to mark the 53rd birthday of the state governor, Mr. Akinwunmi Ambode. Rather than celebrating the governor himself, the occasion was staged to launch a big war against cancer and other related killer diseases in the country. Gboyega Akinsanmi writes

Ambode and his wife, Bolanle (middle), NSE President, Mr. Aigboje Aig-Imoukhuede; members of CECP-Nigeria, Dr. Michael Omolayole; Convener, Mrs. Tutu Adeleke; Dr. Christopher Kolade; Publisher, Guardian Newspapers, Maiden Alex Ibru and Mrs. Kemi Nelson, at the anti-cancer campaign at Lagos House, Ikeja…recently

P

recisely on June 14, dignitaries walked into Lagos House, Alausa one after the other. One obvious reason that brought them together was to honour the state governor, Mr. Akinwunmi Ambode, who turned 53 on the same day. But little did they know that the occasion was designed to fight what former Nigerian High Commissioner to the United Kingdom, Dr. Christopher Kolade called a big war.

Initially, the concept of a big war was not perhaps clear to the dignitaries; neither did they categorically understand what it actually entailed to prosecute the war.

But the idea became quite obvious after the Committee Encouraging Corporate Philanthropy (CECP-Nigeria), a nongovernmental organisation, made a pitiful presentation on the disturbing scourge of cancer and other allied diseases in Nigeria.

Kolade, anchor of CECP-Nigeria, provided diverse reasons for the need to prosecute a big war against cancer. His reasons were founded on some empirical and statistical evidence, which showed the death records of different killer diseases globally. In 2014, according to a CECP-Nigeria report, cancer killed 8.2 million worldwide, which called for concern among the critical stakeholders.

When compared with other killer diseases worldwide, the report showed that cancer and its associated diseases killed far more than HIV/AIDS, tuberculosis and malaria put together. In 2014, as CECP-Nigeria presentation shows, only 1.2 million died of HIV/AIDS, 1.1 million to tuberculosis

and 438,000 to malaria. But cancer only killed 8.2 million within the same timeframe globally.

On the national scale, the report grimly painted a gory picture of Nigeria’s cancer status in terms of preparedness and infrastructure. It thus said over 100,000

Ambode’s passion to help stop the scourge explained why he chose to mark his birthday to campaign against cancer. But his anticancer campaign did not start when he became the governor. He actually started waging the big war against cancer just after he retired from the public service. But he gave it more prominence after he was sworn in as the 14th governor of the state

Nigerians “are diagnosed with cancer every year and about 80,000 die from the disease. The Nigerian cancer death ratio of 4 in 5 is one of the worst in the whole world. Cancer and the 10 related diseases kill more people than all other causes of death in Nigeria.”

But as the CECP-Nigeria presentation revealed, what was disheartening was the way people lost their lives to preventable death and suffering. It cited the example of cervical cancer which “is virtually 100 per cent preventable. Yet, it kills one woman every hour in Nigeria. Also, the survival rate for early-stage breast cancer is virtually 100 per cent. Yet, breast cancer now kills 40 Nigerians daily compared to 30 daily in 2008.”

Likewise, the report put survival rate for early-stage prostate cancer at100 per cent.

Despite the high chance of surviving the disease, the report disclosed that prostate cancer “kills 26 daily in Nigeria compared 14 daily in 2008. On this ground, Kolade came to a conclusion that cancer “is a big war that the private, social and public sectors should fight together to prevent untimely deaths and end untold sufferings.

By official records, Nigerians spend $200 million annually to seek treatment abroad. Similarly, corporate organisations in Nigeria expend a lot of funds on treating preventable cancers among their employees every year. This record explained why a member of CECP-Nigeria and Publisher of The Guardian,Mrs. Maiden Alex-Ibru said combating the scourge “should concern all public and private interests.”

But the failure to fight the scourge manfully is the reason about 240 still die of cancer daily in Nigeria, according to Alex-Ibru. So, given its grave implication for economy and humanity, Alex-Ibru said it was time for all interests “to pull resources together to prosecute the big war,” which she said, required the purchase of 37 mobile cancer centres (MCCs) for 36 states and Federal Capita Territory (FCT).

Across the banquet hall, the presentation on Nigeria’s cancer status sent fear into the spines of the dignitaries. This was evident in uneasy quietness that pervaded the entire venue after the status report was presented. It thus became clearer for the dignitaries that the fight against cancer should not be left in the hands of the government alone, and in response, commitments were made from different fronts.

In spite of commitments the dignitaries might have made privately, the cost of prosecuting the big war against cancer is undeniably enormous, according to a report by CECP-Nigeria. The report put the cost of procuring one MCC at $600,000, which it said, translated to N120 million at an official foreign exchange rate. By implication, it would cost $22.2 million (equivalent of N4.44 billion) to purchase 37 MCCs for each states of the federation and FCT. This burden propelled Ambode to galvanise captains of industry and philanthropists in the fight against cancer.

So, Ambode’s passion to help stop the scourge explained why he chose to

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TUESDAY, JUNE 28, 2016 • T H I S D AY

FEATURES

mark his birthday to campaign against cancer. But his anti-cancer campaign did not start when he became the governor.

He actually started waging the big war against cancer just after he retired from the public service. But he gave it more prominence after he was sworn in as the 14th governor of the state.

In 2015, for instance, Ambode kick-started the war against cancer, which he said, should concern every Nigerian. He then adopted a sensitisation approach designed to make people understand the large-scale threats the scourge posed to the economy and humanity at large. Good as it might be, the sensitisation was not sufficient. As Kolade said, the anti-cancer war requires a lot of funds and manpower. It was on this ground that Ambode said the war against cancer “is for every Nigerian to fight.”

The scourge should be arrested for one obvious reason, which the governor ascribed to its devastative effect on the society at large. He said nearly every one “is related directly or indirectly to one cancer victim or the other. Lives are lost globally daily to this scourge. We shall continue to support initiatives geared towards saving the lives of our people especially against cancer He explained diverse cancer intervention programmes the state government had initiated “to create regular cancer awareness and conduct free breastfeeding and cervicalcancerscreening for women.” Aside, he said medical and financial support “are also given to those who are diagnosed and require treatment. It is in recognition of the need for everyone to get involved.”

Ambode devoted his 53rd birthday to raise awareness in different circles. But for him, regular awareness alone is not enough if Nigeria’s cancer status report must be reversed. This compelled him to invite captains of industry from virtually all sectors to join him in what he called the big war against cancer. He said it “is a war that every Nigerian must join handhands together to wage together.”

Ambode unveiled a proposal to purchase three MCCs, which he said, would be stationed in each senatorial district in the state. He acknowledged the huge cost of each centre, though could be provided through a tripartite partnership of private, social and public sectors. Irrespective of what the cost might be, he said the MCCs “will go a long way to save millions from preventable suffering and death.”

He thus lamented the rate at which the terminal disease had claimed thousands of lives in recent times. In clear terms, Ambode said it was unacceptable, thereby calling for concerted efforts from all and sundry. But he pointed out that the war against cancer “is one that the government

Ambode being decorated as Patron of CECP-Nigeria by the Convener, Mrs. Tutu Adeleke (left) while Dr. Michael Omolayole (2nd left), wife of the Governor, Bolanle (2nd right) and member of CECP, Mrs. Kemi Nelson (right). at the anti-cancer campaign at Lagos House, Ikeja…recently

Ambode being presented with an award by the Convener of CECP-Nigeria, Mrs. Tutu Adeleke (left), during the anti-cancer campaign to mark Ambode’s 53rd birthday at Lagos House, Ikeja…recently

Lives are lost every day to cancer and this is unacceptable. This is why the Lagos State Government carries out public health programmes focused on cancer. I believe the state government alone cannot solve every problem. Every resident has a role to play. In my one year in office, I have come to realise that even with the best will in the world, government cannot do everything

cannot tackle alone, hence the need for Nigerians to extend their philanthropy towards the scourge.

“Lives are lost every day to cancer and this is unacceptable. This is why the Lagos State Government carries out public health programmes focused on cancer. I believe the state government alone cannot solve every problem. Every resident has a role to play. In my one year in office, I have come to realise that even with the best will in the world, government cannot do everything.”

Apart from the cost of funding the MCCs, Ambode cited another real challenge in the fight against cancer. He said the real challenge “is how to unite public, private and philanthropic sectors in building our state. Through this private sector initiative, I can play a role in helping to advance the big war against cancer for the well-being of not just the good people of Lagos State, but Nigerians at large.”

But the chance of achieving this goal is low with the generous support of all people of goodwill, according to the governor.

Without generous support, Ambode emphasised that the goal would not be reached and the opportunity “to save lives would be lost. Though the initial target was for one MCC in Lagos, having three centres in each of the senatorial districts in the state was a priority for him.

He therefore revealed the real reason he organised the anti-cancer luncheon to mark his 53rd birthday. He said the luncheon was “to raise funds for one MCC for Lagos.”

He thus challenged the dignitaries “to not only give towards the provision of one MCC, but towards the provision of three MCC. Each of these MCCs will serve each of the three senatorial districts in the state. One mobile centre may serve the state effectively due to the state’s huge population.”

If objectively pursued, Ambode argued that the intervention would help “to save millions of Nigerians from preventable death and untold sufferings.” He therefore pledged “to mobilise philanthropists and corporate organisations towards establishing one comprehensive cancer centre in Lagos

within the next three years, starting with making available a piece of land in any part of the state and facilitating speedy paper work.”

On these grounds, the governor strongly made one definite demand from dignitaries at the luncheon. It was a demand to fight cancer and other associated diseases aground. Even though June 14 is special to him, the governor said his anniversary “is not really a celebration, but a call to service. Against all odds; against all the things happening to the economy in the country; against the numbers; against the anxieties and the panic, we are still able to stand up and fight the scourge.”

Ambode emphasised the need for all people of good will “to gather together against the scourge. We must also decide to give back to humanity and society. We must equally work as one indivisible force to end preventable deaths and untold sufferings. That is symbolic for me. We must commend ourselves that all hope is not lost. There is more value to us and humanity in championing this course.”

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IMAGES

R-L: Abia State Governor, Okezie Ikpeazu; ADC to the governor, Emmanuel Nwakanma; and the state Commissioner of Police, Mr. Basen Dapiya Gwana, during the decoration of Nwakanma with his new rank of Superintendent of Police, in Umuahia...recently

T H I S D AY • TUESDAY, JUNE28, 2016

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

L-R: President, Lagos Court of Arbitration, Mr. Adeyemi Candide Johnson (SAN); member, Board of Directors, Mrs Funke Adekoya (SAN); and the guest lecturer, Justice Edward Torgbor, during the Alternative Dispute Resolution Speaker series of the Lagos Arbitration Court in Lagos...recently

L R: Chief Correspondent, The Nation Newspaper, Mr. Bisi Oladele; Chief Correspondent, Vanguard Newspaper, Mr. Ola Ajayi; and Principal, Vale College, Mr. Akande Obalojo, during a media tour of the school at Iyaganku, Ibadan...recently felix ademola

L-R: Principal, Girl Secondary School (Senior), Akwakuma, Lady Uzoho Okwuchi; Commissioner for Education, Science and Technology, Imo State, Mrs Gertrude Ego Oduka; Principal, Girls Secondary School (Junior), Mrs Okonkwo Ngozi; HRH Eze Charles Osuji, Eze Udo 11 of Akwakuma Autonomous Community and the Deputy Managing Director, Ecobank Nigeria, Tony Okpanachi, during the handover of borehole donated

by Ecobank to School, in Akwakuma, Owerri, lmo State...recently

L-R: Coordinator, Indomie Fans Club, Mrs. Faith Joshua; pupils of Great God Academy, Agbado, Ogun State; Group Public Relations Manager/Event, Dufil Prima Foods Plc, Mr. Tope Ashiwaju; and Marketing Director, Dufil Prima Food Plc, Mr. Girish Sharma, during the Indomie team-up winners’ selection in Lagos...recently etop ukutt

Principal, Olashore International School, Mr Derek Smith; guest speaker, Founder & CEO, The Chair Centre Group, Mrs Ibukun Awosika; and the Chairman, Board of Governors, Prince Abimbola Olashore, at the 2016 valedictory service of the Year 12 students at Illoko-Ijesa, Osun State...recently

L-R: Lagos State Governor, Mr. Akinwunmi Ambode; Head of Service, Mrs. Olabowale Ademola; Commissioner III, State Civil Service Commission, Hon. Wasiu Odeyemi and the winner, senior staff category award, Mr. Ayo Afuwape, during the public service day celebration, at Alausa, in Lagos...recently kola olasupo

L-R; Founder Linking Hands Foundation, Efe Farinre; Father of conjoined twins, Ayeni Samuel Olusegun; Public Relations & Communications Manager, Arik Air, Ola Adebanji; Associate Vice President ,Marketing and Communications, Arik Air, Jide Alade and Mother of the conjoined twins, Mrs. Ayeni Mary Abiodun during the visit of Arik Team to Lagos State University Teaching Hospital, Ikeja to present return tickets to New York to the parents to enable the twins to undergo surgery in an American hospital...recently

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T H I S D AY • TUESDAY, JUNE 28, 2016

BUSINESSWORLD NIBOR PRIME 1-MONTH

R A T E S LOAN

4.4583% 9.1071%

3-MONTH 3-MONTH

A S

A T

NITTY 1-MONTH 2-MONTH 3-MONTH

11.0102% 12.3790%

GroupBusinessEditorChikaAmanze-Nwachuku Emailchika.amanzenwachukwu@thisdaylive.com

08057161321, 08033294157

J U N E 6.9949% 7.2368% 8.0819%

1 0 ,

1-MONTH 9-MONTH 12-MONTH

9.2061% 9.5872% 10.5042%

2 0 1 6

EXCHANGE RATE N197/1US DOLLAR* *AS AT LAST FRIDAY

Quick Takes ‘Don’t Pay to Access Agric Loans’

The Federal Ministry of Agriculture and Rural Development (FMARD) has advised Nigerian farmers and associations not to pay any money to a person or group of persons for the purpose of accessing agricultural loans. The Ministry was reacting to an online publication in the Daily Trust Newspaper of Thursday, 23rd June, 2016, where it was reported that the APC Secretary (Bayelsa State) said that fraudsters had duped unsuspecting members of the public of various sums of money with the promise to help them obtain loans from the Federal Ministry of Agriculture and Rural Development. The Ministry said that it has not asked any person or group of persons to open any account with either the Agricultural Development Bank or Bank of Agriculture for the purpose of obtaining loans from FMARD, nor has it asked anyone to collect money from people for the same purpose. It therefore advised the general public and farmers to ignore such seemingly attractive proposals from fraudulent and unpatriotic individuals who may be going around deceiving farmers and prospective farmers.

‘London Still Natural HQ of TechnipFMC’

BRAINSTORMING ON BUSINESS LAW

L-R: Chairman, Sterling Bank Plc and outgoing Chairman of Nigerian Bar Association (NBA) Section on Business Law (NBA-SBL), Asue Ighodalo; past Chairman, NBA-SBL, Mr. Gbenga Oyebode and Minister of Finance, Kemi Adeosun at the Annual Business Law Conference sponsored by the Bank in Abuja …recently

NEITI: How DPR Undervalued NNPC’s 8 Oil Blocks Ejiofor Alike The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Mr. Waziri Adio has explained how the Department of Petroleum Resources (DPR) undervalued eight Oil Mining Leases (OMLs) belonging to the Nigerian National Petroleum Corporation (NNPC).

Speaking recently when he visited the Corporate Head Office of THISDAY in Lagos, Adio said DPR valued NNPC’s 55 per cent stake in the eight OMLs at $1.8 billion, while Shell, Total and Agip valued their 45 per cent stake in the

ENERGY eight OMLs at over $2 billion.

According to him, if DPR had used the same valuation, which Shell had used to value their 45 per cent stake, the value of the 55 per cent stake would have been much higher than the $1.8 billion.

As part of the divestment of their onshore assets, Shell, Total and Nigerian Agip Oil Company had divested their 45 per cent stake in OMLs - 4, 26, 30, 34, 38, 40, 41 and 42.

Shell Petroleum Development Company (SPDC) in 2010 opened the floodgates of assets sale by the International

Oil Companies (IOCs) when it announced the transfer of its 30 per cent interest in Oil Mining Leases (OMLs) 4, 38 and 41 to Seplat Petroleum Development Company Plc. Total with 10 per cent and Eni with five per cent subsequently sold their stakes in the three leases to Seplat, thus raising the operator’s equity to 45 per cent.

In 2011, Neconde Energy paid $585 million to Shell, Total and Eni to acquire their 45 per cent stake in OML 42.

Shoreline Energy Resources paid $850 million to Shell and its partners for their 45 per cent stake in OML 30; Eland Oil

paid $154 million for Shell, Total and Eni’s 45 per cent stake in OML 40; ND Western paid $600 million for OML 34; while First Hydrocarbon Nigeria, partly owned by Afren paid $98 million to acquire Shell’s 30 per cent interest in OML 26.

NNPC retained 55 per cent in the eight OMLs, which it later transferred to its producing arm, the Nigerian Petroleum Development Company (NPDC) between 2010 and 2011 at a cost of $1.8 billion.

“Eight assets that belong to the Federation – eight Oil Mining Leases (OMLs) were valued Continued on page 24

NERC Gives Discos Four Months to Provide Meters for Maximum Demand Consumers Chineme Okafor in Abuja The Nigerian Electricity Regulatory Commission (NERC) has given the 11 electricity distribution companies (Discos) in Nigeria a four-month deadline to provide meters to all the maximum demand (MD) consumers under their networks or face sanctions.

The commission said it was acting in line with the agreement it reached with the Discos on the metering conditions of the MD consumers, adding that failure of the Discos to comply with the decisions reached at their related meetings would attract severe penalties from

ENERGY December 1, 2016.

According to NERC, maximum demand electricity customers are categorised as those connected on the 11Kv (high tension wire) electricity lines, mostly with their dedicated transformers.

They include heavy users of electricity like commercial business plazas; small scale industries and others.

A statement from the commission in Abuja directed “Discos to provide meters for all maximum demand meter customers within their networks

not later than the last quarter of 2016 as agreed during the meeting it had with them on metering.”

The commission said its decision to sanction Discos that may default on its directive was sequel to the rising complaints from all categories of electricity customers over estimated bills they considered irreconcilable with the available power supply in the networks operated by the Discos.

It noted that while some of the maximum demand customers had indicated their willingness to key into its makeshift metering plan, the Credit Advance Payment for

Metering Initiative (CAPMI), which permits willing electricity customer to pay for meter by advancing money to Discos who then install meters to them within 45 days, the Discos have reportedly remained reluctant to accept their requests.

“The Commission frowned at Discos refusal to meter their maximum demand customers under the CAPMI. Customer who subscribes to CAPMI is refunded his money with interest through discounted electricity bills over a period of time.

“The Commission in its Continued on page 24

French oil services company Technip has said there was no reason for Britain’s exit from the European Union to impact its merger with FMC Technologies, including plans for London to be the legal headquarters of the new group. Technip announced an all-stock merger with U.S. rival FMC Technologies in May to create an oil services group with combined revenue of $20 billion. The new entity will have a complex structure, with three main headquarters, in Paris, Houston and London, where it will be domiciled. There is no reason why Brexit should impact the deal, a Technip spokeswoman said. “London is a natural place to put the new company. The operational organization on TechnipFMC is clear also and not London dependent,” Reuters quoted the spokeswoman to have said.

Germany Imposes Limits on Fracking

Germany imposed limits on fracking on Friday, dealing a blow to efforts to develop shale gas. Under legislation passed by its lower house of parliament, fracking will be banned in clay formations, which typically lie between 1,000 and 2,500 metres deep. Scientific test drilling will be allowed but only with the permission of the relevant state government and under the watch of independent experts. Fracking for deep-lying or “tight” gas typically 4,000 to 5,000 metres deep, which has been done for more than 30 years in Germany, will continue but under more stringent regulation.In tightening its rules on fracking Germany follows France, which has banned the practice, and the Netherlands, which last year introduced a moratorium on shale exploration until 2020.The German ban is indefinite but parliament will reassess it in 2021 under a compromise reached between the conservative Christian Democrats (CDU) and the left wing Social Democrats (SPD). Fracking involves blasting chemicals and water into rock formations to release trapped gas. Opponents cite the risk of triggering earthquakes and contaminating drinking water. Germany’s gas industry has warned restricting fracking could increase the country’s dependence on imported energy, much of which it imports from Russia.

Saudi Talks Oil Markets with US

Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman discussed global oil market conditions and efforts to maintain its stability with U.S. Energy Secretary Ernest Moniz, state news agency SPA reported. In a brief statement, SPA said the two men talked about “supporting joint efforts for the stability of the energy markets and providing energy to world markets in a sustainable manner.” It gave no further details.

Prince Mohammed, the son of King Salman, is on a visit to the United States aimed at restoring frayed relations with Washington and to promote an economic plan to reduce the kingdom’s dependence on oil revenues.

“If you notice that you are not making progressif you are retrogressing, you should worry. But what I’m trying to say is that a lot of progress has been made” Executive Secretary, Nigeria Extractive Industries Transparency Initiative, Waziri Adio

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BUSINESSWORLD NEITI: HOW DPR UNDERVALUED NNPC’S 8 OIL BLOCKS

at $1.8 billion. We believe those assets were undervalued but that is not the point. Out of the $1.8 billion, NPDC paid only $100 million. So, there is an outstanding of $1.7 billion,” Adio explained.

Adio further revealed that even the $100 million partpayment was made after two years, precisely in April 2014, while NPDC continued to enjoy the proceeds from the eight leases, without remitting any money to the government.

NEITI audit also discovered that NNPC assigned four OMLs - 60, 61, 62 and 63 from the Agip joint venture to NPDC in December 2012 but no amount had been paid on these four OMLs as at the conclusion of the 2013 audit, neither was the value of the consideration stated in the deed of assignment.

The reported further noted that the NNPC provided no justification for these transactions except that it was within the powers of the Minister of Petroleum to do so to support NPDC to develop capacity.

NERC GIVES DISCOS FOUR MONTHS TO PROVIDE METERS FOR MAXIMUM DEMAND CONSUMERS

directives observed that most of the Discos have refused to accept maximum demand customers under CAPMI scheme. Meanwhile, maximum demand customers are fewer in number than the other categories of customers and should have been easily dispense with by the Discos,” the statement added.

It also quoted its acting head, Dr. Anthony Akah who signed off the order as saying that “any customer who approaches your Disco for metering under CAPMI scheme must have their meters within CAPMI stipulated timeline of 45 days. The scheme remains as an option for customers but a compulsory requirement for Discos to implement when customer offers to contribute to metering through CAPMI.”

Group Business Editor

Chika Amanze-Nwachuku Maritime Editor

John Iwori

AgriBusiness/Industry Editor

Crusoe Osagie

Comms/e-Business Editor

Emma Okonji

Capital Market Editor

Goddy Egene

Senior Correspondent

Raheem Akingbolu (Advertising) Correspondents

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

Nume Ekeghe (Money Market) Nosa Alekhuogie (AgriBusiness)

NEWS

Manufacturers Expresses Concern over High Cost of Fund, Predict More Job Losses Crusoe Osagie The Manufacturers Association of Nigeria (MAN) has expressed concern over the high cost of fund available for the manufacturing sector, noting that the precarious state poses threat as more jobs would be lost if nothing is done to address the situation in the country.

Indeed, the sector has the capacity to employ thousands of unemployed youths with the right policies and enabling business environment from the federal government.

The president, MAN, Dr. Frank Jacobs, explained that the sector is going through a very difficult time, pointing out most manufacturers still have to depend on imports for their vital raw materials for production.

The MAN boss who was represented by the vice president, MAN, Mr. Isaac Agoye, at a business luncheon organised by the MAN Ikeja branch, tagged: Manufacturing in a Depressed Economy: The Way Forward said: ”We are going through a very difficult time and there has been a lot downsizing our work force, we are not happy downsizing our workforce but once things are beyond our control. Most of the manufacturers still import most of its vital raw materials into the country. We are trying to look inward to get some of our raw materials, but it is still not enough and even if we get them locally, they are expensive than the local ones.”

He added that: “With the issue of foreign exchange and

you are aware that some items that have been banned. The 41 items by the Central Bank of Nigeria (CBN) and the companies affected by this policy are not finding it easy which means that they cannot get the foreign exchange to get their raw materials which means they have to find another means which are most times very expensive, but the new steps the CBN is taking we believe that we will begin to see light at the

end of the tunnel.”

Furthermore, he said: “We are very resilient and we are determined because we know this is our country where other countries have experienced similar challenges in the past and they surmounted these challenges. I believe before the end of the year, something positive will happen in this country,” he said.

Also speaking at the event, an economist, Mr. Henry Boyo, said the manufacturing sector

should be the galvanising agent for investment expansion, economic diversification and employment of labour in Nigeria, but unfortunately, the sector has not been able to satisfactorily perform these roles because of government misguided government policies, saying that the government is expected to provide the enabling environment for such positive participation of the sector.

According to him, the way

forward to address these challenges is to bring down the cost of fund to 7per cent to provide manufacturers the opportunity to borrow at reasonable rates and also make the exchange rate stronger.

He said the 50per cent devaluation of the naira is going to send a lot of the industrialists and manufacturers packing, adding that the current inflation rate would constrict demand for locally produced goods in the country.

TOWARDS INDUSTRIAL EXPANSION

L-R: Special Adviser to Ogun State Governor on Commerce and Industry, Mrs. Funmi Ajayi; Chairman, Heavy Machinery Dealership Ltd. (HMD), Mr. Ghassan Yared; Executive Director, HMD, Mr. Mathew Khouri; Commissioner for Commerce and Industry, Bimbo Ashiru and a Permanent Secretary in the Ministry, Mrs. Modupe Bosede at the official opening of a company in Arepo Ogun State...recently

Fashola: Accurate National Census Needed to ‘Nigeria’sGasSectorWorth$55bn of Investment Opportunities’ Plan Power Supply Chineme Okafor in Abuja The Minister of Power, Works and Housing, Mr. Babatunde Fashola has said Nigeria needs a full audit of electricity consumers in the country, through a comprehensive national census exercise to be able to plan and deliver steady electricity to homes and industries.

He said it would be impossible to provide steady power supply without a data on the number of people requiring the utility, hence his recommendation that such exercise be instituted.

The minister stated in a statement by his senior media aide, Mr. Hakeem Bello in Abuja that such an audit would help to bring all consumers into the metering net of electricity distribution companies to enable them pay accurately for what they consume.

He, however, did not state if such exercise was being considered by the government but said if it was done, it would boost the finances of the power generating and distribution companies to deliver more power to homes and industries and also maintain their power

facilities.

According to the minister, the prospect of achieving uninterrupted power lay in the maintenance of sustained growth in the sector to match population increase. He also explained that proactive energy conservation in homes and offices; energy preservation by consumers as well as conservation of water and loss reduction in the sector were critical to achieving stable power supply.

Fashola noted that even if all other variables required for stable electricity were met, however, the hope of steady and uninterrupted power could only be assured if certain challenges facing the sector were solved.

One of the challenges he listed include, management of the expectation of the people to have power immediately after the sector’s privatisation because of the impression created that this would happen immediately after.

Other challenges include: agitations by various aggrieved groups that sometimes lead to attacks on power assets; vandalism of power assets; power theft and problems of payment of bills which he said

included assaults on Discos’ revenue collectors.

“Energy efficiency is critical at all stages even when we are trying to get incremental power at this stage when we have the capacity to produce about 5,000MW, assuming we have no gas issues. That 5,000MW can serve more than the people which it is currently serving if we conserve it,” he said.

Fashola said there were plans to produce sufficient power in the country, and listed the various power and ancillary projects being undertaken or completed across the country.

These include: the repair of gas turbines; and the strengthening of the transmission network to evacuate power and priming of the National Independent Power Project (NIPP) Gbarain plant to begin generation into the national grid.

Other power sources he said the country was targeting to increase supply includes: expanding the Qua Iboe station; completion of the 215MW Kaduna power plant; 40MW Kasimbilla; 39MW Dadin Kowa; and 300MW Azura plants.

Ejiofor Alike The President of Nigeria Gas Association (NGA), Mr. Bolaji Osunsanya has stated that the Nigeria’s gas sector has over $55 billion worth of investment opportunities, thus indicating great potentials for extremely growth in the economy and in key areas such as exploration and production, processing, supply, and distribution.

Speaking on the association’s 2016 Business Forum that will hold this week in Lagos, Osunsanya told journalists in Lagos at the weekend that turning natural gas into a profit-making venture would require huge investments in infrastructure to address the five component areas of gas availability, gas affordability, deliverability, funding, and legal and regulatory framework.

Osunsanya disclosed that at the beginning of 2016, the association held separate engagement sessions with the Senate and House Committees on Gas to present the association’s view on gas policy framework required to spur sector diversification, power generation, and subsequent economic growth.

He noted that the government and operators alike recognise that the first step is to provide a

legal and regulatory framework that will enable the removal of persistent obstacles.

To this end, he said the association had scheduled a follow-up roundtable with the Senate and House Committees on Gas for later in the year.

According to him, while the global debate about hydraulic fracturing for shale gas continues to grab the spotlight, closer to home, the discourse about the role of gas in Africa’s energy mix, particularly Nigeria, needs to continue.

“With this in mind, the NGA continues to probe at the current state of the natural gas industry in Nigeria in addition to evaluating the potential for its future development,” he said.

“Feedback from our members suggests that: There is significant interest in exploring for and/or developing a local natural gas industry in Nigeria; there will be wider environmental benefits for the country if that increased gas use displaces some elements of coal-fired energy generation; the Nigerian economy will benefit from gas developments through increased energy security; and increased availability of natural gas will enable Nigeria to maintain its drive in the gas-to-liquids sector,” he explained.

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Increasing Relevance of NEITI’s Audit Reports Ejiofor Alike writes on the increasing relevance of NEITI’s reports in enthroning good governance and accountability, as well as the need for the federal government to muster the political will to implement the agency’s recommendations After a careful analysis of the economic and political progress of countries in relation to the mineral resources available in such countries, political philosophers came up with the theory of resource curse to demonstrate that rather than being a blessing, abundance mineral resources represent a curse to countries.

However, most theorists believe resource curse is not universal but only applicable to third world countries in certain regions that are still at certain stages of their political and economic development.

Political scholars define resource curse, also known as the paradox of plenty, “as the paradox that countries with an abundance of natural resources such as oil, gas and minerals tend to have less economic growth, less democracy and worse economic development than countries with fewer natural resources”.

There is consensus among scholars that when a country abandons all other sectors of the economy and depends solely on a single industry or mineral resource, the country will suffer from resource curse.

With only one industry as the major focus of a country, there will be fierce competition among the few strong citizens and regions of the country for the control of that resources and the accrued revenue, thus fueling conflicts, corruption, bad governance and lack of respect for democratic ideals.

So, instead of using the country’s natural resources, such as oil, gas, metals and minerals, which belong to its citizens, for the benefits of the people, the revenue accruing from these resources tend to serve the interest of a few, who are able to grab the political power to control these resources.

Studies have shown that the top 10 countries ridden with corruption globally are very rich in mineral resources.

Also the top 10 crisis-prone countries have abundance mineral resources, which fueled the conflicts due to the competition among all the sections of the country for the control of the resources.

Having realised that poor natural resource governance often lead to corruption and conflict, there is an increased focus on more openness and public scrutiny of how wealth from a country’s extractive sector is used and managed to ensure that natural resources benefit all.

The Extractive Industries Transparency Initiative (EITI) is a global standard to promote transparent and accountable management of natural resources.

According to the global body, it seeks to strengthen government and company systems, inform public debate and promote understanding.

The organisation is supported by a coalition of government, companies, and civil society in each of the 49 implementing countries.

Nigeria as a compliant country, set up the Nigeria Extractive Industries Transparency Initiative (NEITI), which is mandated by law to promote transparency and accountability in the management of Nigeria’s oil, gas and mining revenues.

NEITI is a major component of the ongoing anti-corruption reform in Nigeria and the national version of the EITI, which is a global movement aimed at ensuring that extractive resources aid sustainable development.

NEITI was inaugurated in February 2004 by former President Olusegun Obasanjo when he set up the National Stakeholders Working Group (NSWG), under the then leadership of Mrs. Obiageli Ezekwesili.

The Minister of Solid Minerals, Dr. Kayode Fayemi is the current Chairman of the NSWG, which oversees the activities of NEITI with representatives of government, extractive companies and civil society.

The NEITI Act of 2007 mandates NEITI to promote due process and transparency in extractive revenues paid to and received by government as well ensure transparency and accountability in the application of extractive revenues.

The first audit report of NEITI uncovered

Fayemi over $46 million as missing money but in the latest report released in May 2016 for the 2013 audit, the figure of missing money has dropped below $500,000, and this represents a huge success for the organisation Highlights of 2013 NEITI audit report According to Fayemi, 49 oil and gas producing companies and 16 government agencies participated in the 2013 audit, which was released last month.

The report showed that the total crude oil production in 2013 was 800,488,000 barrels but the total volume of crude oil lifted through the different contract arrangements was 800,338,000 barrels. The difference of 150, 000 barrels was because not everything produced is always lifted.

The audit also showed that the total revenue flows to the Federation from all sources in 2013 was $58.07 billion, representing a decline of eight per cent when compared with the $62.9 billion realised in 2012. This decline was attributed to the drop in oil and gas sales following divestment of Federation equity in some OMLs, crude losses as a result of destruction of production facilities, pipeline vandalism, and crude oil theft.

According to the audit, some revenues that should have gone to the Federation in 2013 were not made or lost due to a number of reasons.

For instance, $8billion and N358.3billion were outstanding revenues from NNPC and its sub-units in 2013.

The sum of $5.966 billion and N20.4 billion were revenue losses to the Federation arising from the Offshore Processing Agreement, crude swap, crude theft etc.

Again, $599.98 million were uncovered as under-assessments/under-payments of petroleum profit taxes and royalties by oil and gas companies as a result of the use of different pricing methodology by the government and the companies because of absence a new fiscal regime.

NNPC acknowledged receipt of $1.289 billion as dividends, interest and loan repayment for 2013 from the NLNG but did not remit it to either the Federal Government or the Federation, thus bringing the total NLNG payments received by NNPC between 2005 and 2013 but not remitted

by NNPC to the Federal Government or the Federation to $12.9 billion.

Also, between 2010 and 2011, NNPC divested 55 per cent equity in eight OMLs from the Shell

Adio JV to its subsidiary, NPDC. The eight OMLs - 4, 26, 30, 34, 38, 40, 41 and 42 were valued by DPR at $1.8 billion, out which only $100 million was paid in April 2014, leaving a balance of $1.7 billion. The audit further discovered that NNPC assigned four OMLs - 60, 61, 62 and 63 from the NAOC JV to NPDC in December 2012 but no amount had been paid on these four OMLs as at the conclusion of the 2013 audit, neither was the value of the consideration stated in the deed of assignment.

The 2013 audit report also uncovered other infractions by the NNPC and the companies, which are not reflected in this analysis.

Response by companies As a demonstration of the effectiveness and success of NEITI in its 12 years of existence, the report noted significant improvement in the response by companies to NEITI audit process.

For instance, the reconciliation difference between what the companies paid and receipts by government agencies reduced from $46.976 million in 2012 to $492, 000 in 2013, representing 98 per cent fall is attributable to improved record keeping by the entities.

Also gas flaring penalty reduced from $24.58 million in 2012 to $18.475million in 2013, representing 25 per cent decrease due to reduced gas flaring and increased gas utilisation.

The report also noted that under assessments in royalty payments decreased from $465million (30 companies) in 2012 to $168.3 million (16 companies) in 2013, representing a decrease of 64 per cent.

Recommendations One of the key recommendations in the report was that the federal government should conduct a comprehensive investigation into the divestments of Federation assets by NNPC to NPDC. The report also recommended a scientific technology such as finger-printing to track Nigeria’s crude oil trade to check oil theft, while government is also requested to quickly resolve the issue of pricing methodology by enacting appropriate law to forestall under assessments of PPT/Royalty.

NEITI also recommended that the NNPC and its sub-units should refund outstanding payments to the federation, while gas should be invoiced in dollars, not Naira, to avoid exchange losses.

NNPC should discontinue alternative importation arrangements and limit itself to export of

crude and import of refined products; and also abide by Federal Government Financial Regulations and always comply with the 90-day credit period.

The report also seeks to abolish pioneer status granted to companies in the oil and gas sector, except a company is actually pioneering an aspect of the industry.

NEITI further recommended that the government should investigate the status of NLNG dividends; while the NNPC, DPR, FIRS, OAGF and CBN should prioritise fixing remedial issues identified in their operations.

Political will Despite the huge success recorded by NEITI in its 12 years of existence, the agency would have recorded much more achievements if the government had mustered the full political will to implement the reports over the years.

NEITI’s Executive Secretary, Mr. Waziri Adio told THISDAY editors at the company’s Corporate Head Office recently in Lagos that the country would require a political will to implement the various audit reports and recommendations of the organisation.

Adio argued that though the agency has not attained perfection, it has published audit reports to enable the Nigerian people ask questions about the management of their natural resources.

Adio noted that what the country requires is the political will to implement the reports, adding that nothing will be achieved when audit reports and recommendations are presented to a government that is not interested in making a change. He revealed that having conducted six audits in the oil and gas sector and four in solid minerals sector, NEITI has given Nigerians empirical data to hold government to account and solicited the cooperation of the media and the civil-society to ensure that everybody understands the issues in the agency’s reports.

“If you flash back to 2004, there was nothing to work with - no data to work with. You could only work with assumptions and companies because there was no empirical data done by an independent body that will tell you that this is the volume of oil lifted; this is the amount of money made; and this is money that was not remitted that should be remitted. So, a lot has happened in the last 12 years. At least, we have data to work with. We argue not on the Continued on page 26

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NEWS

ULO Boss Seeks Legislation to Compel Insurance Cover for Personnel James Emejo in Abuja

The Chief Executive, ULO Consultants Limited, Mr. Uche Okpuno has called on the government, particularly the National Assembly to promulgate a law to ensure that any working Nigerian is covered by insurance.

Speaking in Abuja while presenting a cheque of N1.2 million as benefit to Mr. Isede Williams, father of a deceased staff of the company, Wilson Kadiri, the ULO boss said personnel insurance cover should be made mandatory

with appropriate sanctions for non-compliance.

He said: “You see, every life is valuable and I think government should make it mandatory that working personnel are covered by insurance. “We have taken this initiative because we appreciate our staff, we appreciate the work they do for us and that’s why we’ve made it mandatory that once you are a staff of ULO, you are covered by insurance and maybe members of the National Assembly should promulgate a law where any working Nigerian is covered by insurance.”

Pays N1.2m to deceased staff family According to him, “We cover our cars by insurance, we cover our houses by insurance: are you telling me that cars are more valuable than human beings?”

On the company’s decision to pay benefits to the family of the deceased staff, he explained that it’s an established policy of the organisation to provide cover for every staff.

He said: “First of all, it’s very painful when you lose a loved one. To pain extends also to his place of work: he’s our staff and

so we have a company policy that all staff are insured.

“This is an avenue where we can reach out to those who sometimes have accidents even if they don’t die; some who are terminally ill-so that we can assist them to build a future.”

Continuing, he said: “The one you witnessed is a staff who worked in Asaba and he die in a car accident, not even on duty, because he had closed from work-but because he’s still our staff, the insur-

ance for all staff of ULO are covered, and then we made a case for insurance to bear the responsibility.”

He said the company will further work with the deceased family to ensure that the money was wisely invested in their own interest.

He said: “With what they have in their hands, we would send our HR (human resource) to help them monitor how to invest it.

“I am sure they may have never seen that volume of amount before. We are look-

ing at a staff who earns about N40,000 monthly and the family are given almost N1.3 million, so we would send our HR to monitor how they invest and guide them on how to invest and make maximum use of the money.”

However, responding to the company’s gesture, father of the deceased staff, Mr. Isede Williams told THISDAY: ”I didn’t expect the company will offer this support I pray the company will continue to progress. I am very grateful and may God be with them.”

Eko Disco Expresses Worry over Harassment by Soldiers Stories by Ejiofor Alike The Eko Electricity Distribution Company has raised the alarm over alleged constant harassment of its staff by soldiers in military barracks and other installations, saying that the act would not augur well for the promotion of civilian-military relations being championed by the military authorities.

The Managing Director and Chief Executive Officer of the company, Mr. Oladele Amoda said in Lagos that soldiers tagged their private and official quarters as military zones and harassed electricity workers that requested for the payment of bills for power consumed in such premises.

He further disclosed that the company was planning to install bulk prepaid meters in all military and other security agencies’ barracks within its operational territory.

Amoda said the installation of the prepaid meters would totally eliminate every form of controversy regarding the accuracy of electricity bills in the barracks Amoda further appealed to military personnel having either private or official quarters outside the barracks to pay for electricity consumed in such premises instead of tagging such premises as military zone and using that as an opportunity to harass and scare the company’s staff, while on their official duties.

He disclosed that the

company had to resort to disconnecting some military formations after all efforts to make them defray their huge debt to the company proved abortive, adding that the order to disconnect was only given after several letters and notices of intention to withdraw service were not responded to.

The company’s General Manager in charge of Corporate Communications, Mr. Godwin Idemudia quoted Amoda as expressing displeasure over the harassment of his company’s staff performing their legitimate duties by military personnel.

Amoda said all the Military formations within the company’s licence area were indebted to the company to the tune of N600 million with about 60 per cent of the debt being owed by the Army, while about 30 per cent and 10 per cent of the debt profile are respectively shared by the Navy and Airforce.

Amoda said molesting staff, who were performing their lawful duties would not augur well for the promotion of military-civil relations which the high echelon of the military has been canvassing in recent time.

Amoda noted that since the company pay for energy received from the grid, no segment of customers can be allowed not to pay as no business can thrive when services rendered are not paid for by its patrons.

PROMOTING AFRICA

L-R: Executive Creative Director, Insight Publicis, Chima Okenimkpe; Publisher, FAB Magazine, Familusi Babajide and Chief Operating Officer, Insight Publicis, Feyi Olubodun, during a session hosted by Insight Publicis on “Marketing to African Consumer” at the 2016 Cannes Lions Festival in France...recently

PH Disco Canvasses for Use of Energy-saving Bulbs The Port Harcourt Electricity Company (PHED) has charged electricity users within the company’s network to embrace the use of energy-saving bulbs and also put-off electrical appliances whenever they are not in use to reduce the cost of energy they use.

Speaking at a special customers’ engagement forum on energy management and electricity bulb exchange held recently in Ahoada, Rivers State, the Project Manager, Projects Management Office of PHED, Mr. Chijoke Okwuokwenye

identified the benefits of energy-saving bulbs.

According to him, energysaving bulbs provide better lighting, and are also environmentally friendly, stressing that the bulbs also come at less financial cost to users.

In her opening remarks, the Head, Glory City Main Integrated Business Centre, (IBC), Mrs Ngozi Manafa, who was one of the organisers of the programme, said PHED was committed to providing quality and reliable power to customers in her area of

coverage.

She added that the company was faced with huge challenge of losses due to a combination of reasons, including nonpayment by some customers.

Also speaking, the Manager, Corporate Communications, PHED, Mr. Jonah Iboma, stated that the company, as a responsible firm, would always create avenues for improved company-customers’ interactions. The President, Ahoada Youths Council, Mr. Kenneth Imo, expressed deep satisfaction with PHED for holding the

forum in Ahaoda despite the serious security challenges in the area. He called for more of such engagements to be held in the future.

The event, which was held in the Ahoada Community Town Hall, drew large attendance of men and women, especially youths of the community.

The programme was organised by Manafa, Iboma, and Okwuokwenye. At the end of the forum, PHED exchanged energy-saving for incandescent bulbs that customers brought to the event.

INCREASING RELEVANCE OF NEITI’S AUDIT REPORTS basis that we got perfection but that at least, people can now ask questions using the reports

by NEITI. People can use NEITI reports to ask questions. That is number one. Number two is that if you have noticed, a number of things have also changed overtime. May be, they have not changed as we want them. But I don’t want to believe that we are exactly where we were in 2004, in terms of evidence that the citizens can use. Yes, I will agree with you that may be, we need to engage more with citizens; may be; we need to engage more with policy makers to bring about the change. But let us also look at it this way,” he explained.

He identified the recent unbundling of the NNPC, the reform in the Corporation, the removal of petrol subsidy and the introduction of Treasury Single Account (TSA) as some of the recommendations of NEITI in its previous reports.

“There are two ways you can change the world. One way is through a revolution – people go to the streets or somebody overthrows the present order and introduces a new order.

The other way of changing the world is by increment – you make one progress, you build on it; you make another progress, you build on it. What I am trying to say is that in the last 12 years, a lot has happened in terms of people being more aware of what is going on and not relying only on NNPC to tell you what is going on.

That is number one. Number two is that from issues we have been talking overtime, there are certain things that are wrong in the way we manage our resources. Some of them are aggregating together to the extent that now, we are seeing some changes. Also some money that would not have been recovered is being recovered. But has NEITI failed? The answer

is No,” Adio said.

“What I am trying to say is that the work of changing the society is always work-in-progress.

The only thing is that if you notice that you are not making progress- if you are retrogressing, you should worry. But what I am trying to say is that a lot of progress has been made,” Adio added.

Adio recalled that even in the last general elections, the issue of implementing NEITI reports was a campaign issue, adding that if there was no NEITI, nobody would have talked about NEITI reports.

He insisted that the country must have the political will to implement the reports, adding that the report will not be relevant when the government in power is not interested in change.

“We need to have the political will. If you have a government – let me give you an example: NNPC divested 55 per cent of its assets to its

upstream subsidiary – the Nigerian Petroleum Development Company (NPDC) but the assets were not properly valued.

They were valued at $1.8 billion and they paid only $100 million and the rest of the money was not paid and they were benefitting from it.

So, if you raise such issue with a government that is interested in keeping it that way - if you have a government that is not interested in change- in making things work, then you are just wasting your time writing reports. So, what we need to do is to get the buy-in of the government,” Adio said.

He argued that the citizens should be on top of these issues and not regard them as NEITI issues because they border on the welfare of the people. NEITI has justified its existence but what is left is for the federal government to develop the needed political will to implement the agency’s reports.

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As Pipeline Breaks Threaten Nigeria’s Energy Security Chineme Okafor writes that the sabotage of critical oil and gas infrastructure by militants is compelling reason for the federal government to accelerate policies to diversify Nigeria’s electricity generation sources to ensure energy security

Niger Delta militants The Minister of Power, Works and Housing, Mr. Babatunde Fashola recently declared that the renewed militancy in the Niger Delta was taking a great toll on the country’s electricity system, and that Nigeria’s economy was being made to pay for this acts.

Describing it as an unwholesome act, the minister in a disappointing voice, which sounded quite overwhelmed by the development, stated that the government was being forced to think fast on expanding the country’s sources of electricity.

“Repeated acts of vandalism have rendered us vulnerable and we have to proactively move to overcome that one single source of supply,” he said.

He explained that developing new and existing sources other than gas could take time but would eventually pay off and guarantee security of energy for her.

“We have seen from events that started around February 14 this year, repeated acts of vandalism of our gas pipelines that render us clearly vulnerable to one source of fuel for our energy development.

“That has challenged us to develop options and alternatives like solar in particular, and of course, hydro power plants in more quantitative response. So, we will be accelerating work on projects like Gurara Hydro Power Plant – phases 1 and 2, work has started on Zungeru Hydro Power Plant.

“We will also be accelerating work on Mambila Power Plant, which will give us the biggest single electrification source over a period of seven years that it is estimated to have it concluded.

“So, for us, this is a journey of diversification, a journey of electricity security for Nigeria and it is a journey that will ensure that in future it will be impossible to hold this country to ransom by controlling any particular source of fuel for electricity” he stated.

He noted when he launched the Building Energy Efficiency Guideline (BEEG) for Nigeria, that sustained sabotage of the country’s petroleum pipeline in the Niger Delta by militant groups has rendered the country’s public electricity supply system extremely vulnerable.

“I have always asked myself, why should I damage an asset that serves me because I am angry? It is a matter of public ownership and

collective trust that anyone who tampers with it tampers with all of us and so no matter how angry you are, you must find another way to ventilate your anger, otherwise, it just doesn’t make sense to me,” he said in reference to the breaks.

According to the minister, because of such frequency in breakage of pipelines that feed gas to thermal power stations that produce more than 70 per cent of the country’s electricity, the federal government would be stepping up works on alternative supply sources like hydro, biomass, solar and wind.

He noted this effort would be more on accelerating works on several hydro power projects that have been on the drawing board, as well as other energy sources with the potential to minimise the impact that such cuts in gas supply exert on the country’s electricity sector.

He however did not rule out the fact that gas was about the most efficient energy source for Nigeria, but reiterated that unless new energy sources are brought to the grid, militants and other criminal elements could continue to hold the country at ransom with frequent pipeline breaks. The minister stated that in line with such plans to ensure energy security, Nigeria would soon concession about eight small hydro power plants to private operators to build and operate.

Expectedly, power generated from these SHPs may have to be domiciled in cluster zones around them, thus sidestepping high transmission and distribution losses, which are prevalent in the country’s electricity system.

He equally disclosed that works on other bigger hydro plants like the Zungeru, Kashimbila and Mambila would be accelerated.

For Zungeru, he said work had resumed on it after issues related to its unplanned interruption was settled.

Mambila, he said could take up to seven years to come on stream if work begins on it soon, it however stands to give the country up to 3050 megawatts (MW) of electricity.

As at today, Nigeria has an installed electricity capacity of 13,308MW but only about 3,000MW to 4,500MW of power is generated and transmitted to its homes and industries which suffer the impacts of the shortage.

Due more to unavailability of gas to power

turbines; pipeline breakdowns as it is today; water shortages in hydro dams up north; as well as systemic grid constraints from poor funding of transmission projects, the recent decision by the government to privatise the power sector has been questioned by its citizens.

A 2015 report by the Nigeria Energy Support Programme (NESP) indicated that altogether, up to 2700MW of power generation capabilities are regularly lost to gas constraints, as well as another 500MW to poor water management.

The NESP report also stated that several hundred megawatts of electricity are regularly lost due to line constraints.

As a support programme for the sector and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ), the NESP noted that there are opportunities the government should explore in on-grid renewable energy, energy efficiency and off-grid rural electrification to upgrade the country’s capacity.

Less talk, more action needed Already, Fashola has admitted that the government’s talk about expanding Nigeria’s electricity sources would need more work than talk. This in essence suggests he understands what it would require to achieve the goal.

As it stands, experts who spoke with THISDAY on this subject stated that the government’s plan can only be taken serious when it matches it with tenable acts.

They said for example that the Renewable Energy Master Plan (REMP) which was in 2005 drafted by the Energy Commission of Nigeria (ECN) and the United Nations Development Programme (UNDP) and reviewed in 2012 has not been articulated by the government as a potential tool for upgrading the immense contribution of the renewables to the country’s energy mix.

Although, the REMP was in May 2015 thought to have been replaced by the National Renewable Energy and Energy Efficiency Policy (NREEEP) which was approved by the Federal Executive Council (FEC).

According to them the REMP document

spells out in clear terms, Nigeria’s vision and strategies for increasing the role of renewable energy in the mix.

Specifically, the NESP report stated that the REMP does not precisely differentiate between on-grid and off-grid generation, but refers to integrating renewable energy into buildings, electricity grids and other distribution systems.

Industry experts state that government can begin by adopting the REMP which targets higher electrification rates, from 42 per cent in 2005 to 60 per cent in 2015 and 75 per cent by 2025.

The NESP report noted for example that the REMP has still not been signed off by the government or formulated into a law to govern renewable energy development in the country.

It added that once that happens, investors will have a clear path for drawing on the various financial incentives envisaged for renewable energy to grow its contribution to Nigeria’s power.

Because Fashola has also harped on the quantity of power that could come from solar if effectively deployed, experts think that he should take a deeper look at the REMP which laid out in details what the country can get from solar at every periods of the year.

They posited that for the government’s electricity diversification plan to work out well, it has to devise a structured support mechanism, which on one hand, creates an attractive investment climate for independent power producers, and on the other hand, ensures a prudent use of government funds in renewable energy projects.

The NESP report indicated in this regard that a competitive procurement system for utility-scale and a feed-in tariff for small-scale renewable energy seem to be the best approach in line with the current market order.

It also explained that the rural electrification sector was still awaiting government’s approval of the Rural Electrification Strategy and Plan.

The report further added that the operationalisation of the Rural Electrification Fund was as important as a coherent planning and regulatory framework needed to promote investments and streamline the actions of federal, state and private actors towards a mass roll-out of electrification projects to guarantee the country the kind of energy security it desires.

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T H I S D AY • TUESDAY, JUNE 28, 2016

BUSINESSWORLD

INDUSTRY

Imperatives of Standardisation to Economic Growth and Diversification

Crusoe Osagie posits that for Nigeria to experience actual economic growth and diversification, she must take crucial steps to make products that meet global standards and are competitive Nigeria has paid lip service to the diversification of her economy for years and seemingly got away with it, but not anymore.

In the last 14 months, Nigerians have seriously felt the pinch of a deflated economy where many players in the market grapple for the very little resources available.

The forex shortage that currently plagues the country is a typical example of the fall out of a crisis that has held the nation captive for the past few weeks and months.

After bowing to pressure, and implementing the flexible foreign exchange regime, Nigerians appear hoodwinked to think that their problem with forex shortage is over.

On the contrary however, it does not matter what the pundits and analysts think about the effectiveness or otherwise of the new CBN policy; one fact is unchanged and that is that the country remains a consumption nation, which produces nearly nothing for the export market excepts crude oil. Yet it imports nearly all that it consumes including nearly all its food and fuel.

So, it is just a matter of time before manufacturers and other players in the nation’s economy go cap in hand in search for scarce forex.

President of Dangote Group and perhaps the biggest industrialists in Africa, Aliko Dangote, recently said he first heard about the urgent need to diversify the Nigerian economy in the year 1979. He however noted that adequate steps were not taken to implement the lofty idea, leading to the current imbroglio after the price of crude oil plummeted recently.

Standardisation and Diversification Speaking of the urgent need to diversify the nation’s economy however, it cannot be a complete conversation without talking about the quality of products and standardisation.

The African Organisation for Standardisation (ARSO) last week said it has started new strategies to ensure standards in agricultural produce in Africa impact positively on the Africa economies.

A member of the ARSO Council and the acting Director-General, Standards Organisation of Nigeria (SON), Dr. Paul Angya, said the standardisation of produces would boost end-product competitiveness.

ARSO plans to deploy standards and strategies to boost agriculture in Africa, noting that the move was to ensure that African countries adhere and comply with global best standards to impact positively on African economies.

Angya noted that the Africa’s standards body intends to help African countries revolutionise its agricultural sector and also adopt new technologies to boost productivity.

He added that the development would help Africa to move away from reliance on food imports, to securing food supplies through rapid and sustainable increase in food production.

Angya reiterated that Africa’s year of quality infrastructure would be used to chart new priorities and strategies for agriculture, maintaining that with the new standardisation efforts, the input supply and product processing sectors would become more consolidated, concentrated and integrated.

According to him, contributions of the organisation in harmonising standards for fertilizers and agrochemicals for agricultural sector on harmonisation of standards are aimed to boost international trade, pointing out that there is a great improvement in African countries aligning with international standards to improve their market access and boost regional trade.

He said standards had become a tool in the fight for competitiveness and for creating barriers for regional trade while emphasising the need for African standards to be a benchmark against international standards.

According to him, Africa regional cooperation and deeper integration of services and standards will increase trade among Africa countries, saying

words, results from an ISO/IEC 17025: 2005 accredited laboratory in this situation from Nigeria eliminates the possibility of goods being denied access on the basis of inadequate conformity assessment.

Other contributions of good and acceptable laboratories to growth are as follows: • Institutionalisation of Laboratory Quality Management System Accreditation is beneficial to government and regulators and promotes Good Regulatory Practice (GRP). Process and activities are adequately managed resulting in an effective quality management system which is fundamental to assurance of consistency, credibility and validity of test results and services.

•Increased Quality of Operations: Accreditation improves organisational efficiency through the reduction of waste, time utilisation and streamlined management procedures.

Angya this is a given priority in ARSO. The SON boss noted that plans were also ongoing to ensure that membership of the body was increased to foster involvement of many regions in the intra-African trade.

“There is the need to strengthen Africa’s economic independence through standards and empower the continent to play its rightful role in the global economy.

“I wish to emphasise that global competition has become more intensified in terms of quality, price, supply chain management and dependability of delivery systems. Changing consumer preferences are changing producers’ responses to market signals. This has further reinforced the need to harmonise standards if we have to play in the global market,” he added.

He stressed that ARSO would be forging collaboration among national standard bodies, regional blocs, Pan African Quality Infrastructure bodies, the African Union and the United Nations Economic Commission for Africa (UNECA) to facilitate the chances of Africa to become a major player within the global market.

Angya explained that countries would only remain competitive when their companies and businesses are competitive.

Also speaking at the event, the Minister for Trade, Industry and Investment of the United Republic of Tanzania, Mr. Charles Mwijage, tasked ARSO to fast track the harmonisation process, saying it was long overdue and urged ARSO to develop concrete proposals in harmonising standards, adding that standards remained a key component of competitiveness.

“To be a part of a regional or global supply chain, the standards of a country remained a key.

“It is important at this stage to take the works of ARSO and technical bodies to the political level if harmonisation goals would be realised. International standards should also be part of African standards because there is no need to reinvent the wheel except developing the ones that are peculiar to the regions to increase the economies of scale,” he added.

ASRO Secretary General, Dr. Hermogene Nsengimana , noted that capacity building, women empowerment, value addition to agriculture produce and link to the African Union continental free trade areas were needed for Africa to have its global market share .

Nsengimana urged members to effectively explore other international standardisation partners to fast track industrialisation.

Standardisation and Economic Growth The SON, has appealed to all stakeholders

in the nation’s productive, manufacturing and export value chains to avail themselves of the agency’s Globally Certified Laboratories services to promote growth.

Recently, SON scored good points following the testing, accreditation and certification of its Food Technology Laboratories located in Lagos by the International Laboratory Accreditation Co-operation/American Laboratory Association.

This good news has a clear implication: it implies that once locally made agricultural produce and other agro-allied goods are tested and certified by the SON Food Technology Laboratories, they would automatically become globally accepted.

For a long time, Nigerian products have suffered rejections at the international market.

Again, we should know that what is not good for export is equally not good for local consumption. The laboratories will change the whole history of global market rejection of Nigeria’s exports.

According to agency officials, with the newly accredited laboratories, Nigeria is set to get results in terms of export promotion and high investment portfolio. The arrival of the SON’s Food Technology Laboratories indeed brings home the gospel of national economic diversification which the federal government has been propagating.

Internationally accredited laboratories open a window of opportunities for all and sundry- the government, SMEs, MSEs, producers, manufacturers, exporters, operators in the agro-allied sectors and several others.

Benefits of Labs Accreditation has become almost a de facto prerequisite to international trade. Lack of acceptable laboratory test data and certification across national borders has been identified as a significant barrier to trade. Accreditation of SON laboratories therefore provides assurance for trading partners that SON is competent to test export food products, especially for food contaminants. At the same time, compliance with the World Trade Organisation: Technical Barriers to Trade (WTO TBT) agreement thus overcoming trade barriers is assured. Section 6.1.1 of the TBT Agreements states in part that, “…verified compliance, for instance through accreditation, with relevant guides or recommendations issued by international standardising bodies shall be taken into account as an indication of adequate technical competence.” An accreditation system can provide importing countries with a cost efficient basis to be confident in the qualities of goods, and an assurance that they satisfy the technical standards of their own regulations. In other

•Accreditation as a Marketing Tool for Developing Countries.

Accreditation is internationally recognised as a reliable indicator of technical competence. National economies which have established an accreditation infrastructure are better positioned to build national and international confidence in the quality of products and services which they produce.

Increased consumer confidence, especially on an international scale is likely to aid national and regional economic growth.

•Customers’Preference. Laboratory accreditation confers national and internal recognition and promotes patronage and economic benefits to both SON and Nigeria. It gives assurance that test results are obtained using properly validated and calibrated systems by staff with the right expertise and therefore offers an easy means to customers in determining and choosing reliable analytical services.

•nstitution and Personnel Recognition: Laboratory accreditation confers high respectability both at the national and international levels as an indicator of technical competence.

It bestows self-confidence, esteem and prestige to SON and its laboratories services personnel.

• Cost Effectiveness: The process of laboratory accreditation is regulated and standardised according to international norms with common approaches and acceptability for test reports and certificates issued by accredited laboratories, thus preventing the repetition of tests and analyses between parties/countries and reducing costs.

Let us also quickly note that the SON laboratories services will provide a check list that would facilitate the development and accreditation of private laboratories across the country.

SON has since offered free certifications to Small and Medium Scale Enterprises, (SMEs) as part of the efforts to diversify the nation’s economy from oil to non-oil sectors. These SMEs/MSEs therefore owe it a duty not only to continue to identify, collaborate and synergise with SON, but also to make effective use of the agency’s laboratories. There is no need cutting corners in this business since SON now provides the leeway for the robust and continuous development of SMEs in Nigeria.

Also, there is the crucial need for the SMEs, and others to take advantage of the SON Food Laboratories by making their products available for testing at minimal cost, depending of course on, the time they would be ready to develop and have their own standard Laboratories. Nigeria is a big country with huge potentials; the approved SON Laboratories are just a stepping stone by the organisation to make its campaign of Made-in-Nigeria-for the –World, a huge success.

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T H I S D AY • TUESDAY, JUNE 28, 2016

BUSINESSWORLD

PERSPECTIVE

Electricity Supply: Beyond the Temporary Setbacks Uche Aneke When President Muhammadu Buhari assumed the mantle of leadership, a year ago, one of the promises he made to Nigerians, was tackling the malignant issue of poor electricity supply in Nigeria and bringing the situation up to the point of power availability and stability. Interestingly, at the beginning of his administration there was improved electricity supply across the country and Nigerians were happy and full of praises for the development.

Regrettably, the power situation suddenly took a nose dive to the extent that there were public outcry and disenchantment.

Public outcry not because the government had failed or reneged in its promise but because of man-made problems caused by vandalism and resurgence of attacks on critical oil and gas pipelines in the Niger Delta. This sudden development erased the first time ever record of 5074MW of power generation and distribution achieved by this government in the country.

Government is making effort to address the situation. However, the attacks on pipelines have had significant toll on the power generation capacity and distribution, reducing it to a little above 2000 MW; resulting to poor electricity supply across the country. In view of this, many questions have arisen from the general public, which require urgent answers.

One of the questions is the ability of the Federal Government to revitalize the power sector. The other question borders on the rationale behind the merging of the Ministry of Power with that of the Ministries of Works and Housing. Closely following this question, is why the appointment of Mr. Babatunde Fashola, a lawyer and Senior Advocate of Nigeria, not an Electrical Engineer, as the Minister of Power. The next question queries the continued life span of the privatization process in the power sector which ought to have been cancelled due to appalling performance by both the generation and the distribution companies. The questions are endless but the important thing is that these are genuine concerns from Nigerians who appear to have lost patience with the government in its determination to fulfil its promise of providing stable power supply to its people.

It is true that there has been epileptic power supply and that the GENCOs and the DISCOs to some extent have not lived up to the expectations of the public.

At the moment, there is a consensus of opinion that these two companies have not demonstrated enough ability to generate and distribute any extra power other than relying on the existing generation and

Fashola distribution infrastructures they inherited after the privatization. There are also instances of increase in the electricity tariff and Nigerians being forced to pay for electricity they did not consume due to estimated billings and non-provision of prepaid meters.

What is not true however, is the question being raised about the ability of government to revitalize the power sector. Clearly, the government of President Muhammadu Buhari has demonstrated its commitment to achieving this goal.

Aware of the enormous challenges that abound in the power sector, President Buhari appointed a seasoned technocrat, a former Governor of Lagos State, Babatunde Fashola, to head the sector and that of the Works and Housing. Mr. President cannot be faulted on this appointment.

Undoubtedly, Fashola has the mental and physical abilities to transform the sector. It does not matter whether he is an electrical engineer or not. Since he took over the headship of the power sector, he has shown clear leadership. First, he was able to attract a total of N99 billion Naira to the sector in this year’s budget. This money is dedicated to revamping the nation’s power sector. Already, 24 transmission projects

have been earmarked for execution in the 2016 budget. The same number will be undertaken in 2017 and then be expanded in 2018. The 2016 budget also captured more than 2,000 rural electricity projects for completion.

The Minister brought a novel approach to the sector by introducing a monthly sectoral meeting of operators in the power sector. It is on record that deliberations from these monthly meetings have helped to shape and resolve issues affecting the sector to the satisfaction of industry operators. Such issues revolve around safety in the Nigerian Electricity Supply Industry, gas supply and constraints, provision of prepaid meters, estimated billings by DisCos and handling of customer complaints etc. Not long ago, while delivering a lecture titled ‘Nigeria’s Electricity Challenge- A Road Map for Change’ the Minister expounded how he intends to boost power supply through a three pronged process: incremental power, stable power and uninterrupted power. He also facilitated the disbursement of fund by the Central Bank of Nigeria to Distribution companies which will enable them improve service delivery, upgrade their equipment, provide meters and resolve customer

complaints.

Being aware of the need for the country to seek and explore alternative power generating systems, the Minister is accelerating work on four hydro power plants in order to boost energy supply in the country. Speaking on this initiative, Fashola stated that government would increase work on Gurara hydro power plant phase one and phase two, Zungeru, Dadin Kowa and Mambilla power plants to solve energy problem. He justified his action thus “to us, this is a journey of diversification, a journey of electricity security for Nigeria, it is a journey that has already started and it is a journey that will ensure that in future, it will be impossible to hold this country to ransom by controlling any particular source of fuel for electricity”. In addition to this, government is pursuing an energy mix and energy preservation policy aimed at boosting power supply. As a follow up to this, government gave approval for 15 different solar projects to generate a combined capacity of 1,286MW. On why government has not cancelled or reversed the privatization in the power sector, Fashola believes that there is no need bemoaning the past and I agree with him because looking back, is the shortest route to failure. Supporting this position, a former American President, Lyndon B. Johnson, once said “Yesterday is not ours to recover, but tomorrow is ours to win or lose”. What is important which the Minister has done is to focus on the present; get the priorities right and move forward to revitalize the power sector.

The issue of epileptic power supply for now may continue until cessation of attacks on oil and gas installations takes place.

It may continue also until the options of alternative power generating systems embarked upon by the government are fully developed. Little wonder then that the Minister said “we have seen from events that started from around 14th February this year, repeated acts of vandalism on our gas pipelines and infrastructure that render us clearly vulnerable to one source of fuel for our energy development”.

For now, it takes a discerning mind to appreciate the efforts of the government to transform the power sector. This is even more difficult in the face of the present epileptic power supply which government is genuinely addressing. The fact remains that in no distant time, President Buhari and the Minister of Power will be applauded for taking bold steps in solving the electricity challenge in the country.

•Aneke, General Manager Public Affairs, Nigerian Electricity Management Services Agency Ucheaneke5@gmail.com

Solid Minerals Devt Critical for Economic Diversification, Says NACCIMA Crusoe Osagie The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has called for the urgent need to pay attention to solid minerals development in order to diversify the nation’s economic base.

The National President, NACCIMA, Dr. Bassey Edem, said the sector has the potential to increase its contribution to the nation’s economy to at least 5 per cent by the year 2017 and 10 per cent by the year 2020.

Edem during the chamber’s 56th annual conference in Jigawa State, tagged: “Diversification of the Nigerian Economy:

Solid Minerals in Focus”, said the National Bureau of Statistics (NBS), in 2014 revealed that the contribution of solid mineral sector to the Nigerian economy was just 1 per cent, noting that the sector also has the capability to create three million jobs both direct and indirect by the end of year 2017. “Towards this end, the National Policy on Solid Minerals ensures an orderly development of the mineral resources of the country by providing clear rules for the exploitation of the minerals and a clearly prescribed pattern of developments with roles of the different actors clearly defined,” he said.

He added: “Furthermore,

the Federal Government of Nigeria has identified seven strategic solid minerals to be prioritised and promoted for private sector participation and investment. They include: gold, coal, bitumen, limestone, iron ore, lead/zinc and barytes. It is my sincere hope that the outcome of the technical session of today, will kick-start the promotion of the solid minerals sector.”

He said the theme of this year’s conference expresses in very clear terms the need for diversification, proffers solid minerals as a viable option, and lays the foundation for exploitation of the opportunities that lie therein.

On the present administrations’ one year in office, the NACCIMA boss said the country has faced challenges such as the falling prices of crude oil, increased inflation, scarcity of foreign exchange, low generation of electric power supply, and increase in pump price of PMS, but stressed that in spite of these, the policy direction of the government has been clear; namely, consolidating government revenues, close loop-holes, eradicating corruption, investment in the development of infrastructure, promoting food sufficiency and local content development of raw materials in

manufacturing.

In his words, “As soon as you came into office, we in NACCIMA stated that we share in your vision to build a virile nation with a sustained growth and development in all areas of the economy where everyone would have equal opportunity to contribute his quota, and where justice and equity will reign. We reiterate this statement and assure you of NACCIMA’s unalloyed support at all times.

We firmly believe that the introduction of policies that promote free enterprise in the Nigerian economy will impact positively on the sustainable growth and development of

the economy.”

He commended the efforts of the President of the Jigawa Chamber of Commerce and Industry, Alhaji Shuaibu Haruna, the Council Members, Management and Staff of the Jigawa Chamber of Commerce and Industry, for the excellent arrangements they have made towards making the event a success.

“Equally worthy of mention are the efforts of our selfless and generous member chambers, corporate bodies and individuals who have continued to contribute morally and financially to build on the strong foundation laid by our founding fathers,” he added

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T H I S D AY • TUESDAY, JUNE 28, 2016

PROPERTY & ENVIRONMENT Apapa Residents Turn to FG to Stem Collapse of Commercial Property Market The steady decline in property values in Apapa, particularly in the commercial buy-to-let market, is beginning to set investors on hedge. While the residential market still looks good, very few non-maritime related businesses remain in Apapa presently. But the concerned residents of this once pristine enclave, principally those in the GRA, have resolved to dig in and weather the storm until they find succor from the government, writes Bennett Oghifo

A

papa is divided into a commercial section and a residential neighbourhood, and the serene Government Residential Area (GRA) is the prime property market.

Apapa residential market has promise; in fact, there has been a measure of stability in the face of the turmoil goods laden trucks and tankers cause in this part of Lagos which used to have guaranteed night-time economy. Until recently, people work and play in Apapa 24/7, all year round, but all that paled when the trucks moved in. Just when it was beginning to look like these trucks and tankers were thinning out from the roads and link bridges of Apapa, there emerged a resurgence that startled the residents, whose inner streets have also been taken over by these menacing machines.

The plea…

Some discerning investors in property are optimistic that the future is bright for the residential property market in Apapa, and have set up processes to deliver high-rise luxury residential towers. One of such is a foremost real estate development company, CMB Building Maintenance & Investment Company Limited that recently turned the sod to begin the development of a high-rise residential housing estate in Apapa GRA. Managing Director of CMB, Mr. Kelechukwu Mbagwu, said after the sod-turning ceremony that Apapa’s residential market has huge promise.

Regardless, the distraught residents of Apapa Government Reserved Area (AGRA), have called on all levels of government to quickly come to the aid of the ports city to prevent it from total collapse.

Businesses and residents suffer due to menace caused by trucks

They spoke through the General Manager of AGRA, Mr. Paul Odey. The Association lamented that 13 months into the government of All Peoples Congress (APC) in Federal, State and Local governments, the residents of Apapa are still left in the lurch to continue to suffer the menace of bad roads, unending traffic jam and the lawlessness of truck drivers.

Odey noted that the people who still reside in Apapa commute by boat to their destinations, condemning what he described as indifference on the part of various governments to the plights of the residence.

He noted that Apapa’s economy has virtually collapsed because of the activities of the truck drivers parking on the roads. He noted that it is not just Apapa’s economy that was prostrate, but that the entire nation’s economy was bleeding.

Ode said the truck drivers have frustrated every effort to relocate them from the roads.

He cited an instance where a company; FT Global Logistics Services Ltd came up with a proposal to take the trucks off the road.

Odey pointed out that “Apapa has not experienced any change at all. The access

roads are getting worse because you can only accessed Apapa through Apapa and Coconut bridges. The current Minister of Power, Works and Housing, Mr. Babatunde Fashola is familiar with our plight because he frequented Apapa while he was the governor of Lagos, though he could only come on Sundays because of the traffic situation.”

He added that “If one part of the body is bad, it would affect the other parts of the body. The access roads are in a terrible state, therefore the other infrastructure are collapsing. Why in the world would public money be spent to fixed roads only for individuals to damage them?

Are we running a country where you cannot even designate where trucks would park?”

He lamented that policemen and other security agents that ought to be doing more legitimate duties are directing traffic. The AGRA boss noted that the Truck Park opposite Tin Can Island that has been under construction since the days of the late President Umaru Yar’ Adua was still at phase one because of a dubious new bridge being constructed just beside the Liverpool bridge that connects Apapa with Tin Can Island.

Odey also said there were no street lights on the bridges that lead to Apapa, inspite of the fact that less important roads had.

In a telephone conversation with the Managing Director of TF Global Logistics Limited, Chief Chris Orode, he explained that his firm came up with three-pronged approach to curb traffic jam in the ports city. He said the first approach was to create an alternative parking lot, introduce an electronic authorization that would ensure that only trucks are on the roads at any given time.

Abuja Housing Show Promoter Commends Fashola on Proposed Low Income Housing

O

rganiser of the Abuja Housing Show Mr. Festus Adebayo has paid glowing tribute to the Minister of Power, Works and Housing Babatunde Fashola for his plans for affordable housing

in the country.

He said the annual show would support the ministry to meet whatever target it sets in affordable housing delivery.

A statement by Adebayo maintained that contrary to claims that Fashola was not favourably disposed to affordable housing provision, the minister was indeed working hard to make housing provision easy for those in the lower rung of the social ladder.

Adebayo, who is Chief Executive Officer (CEO) of Fesadeb Communications, producer of Housing Programme on AIT and Housing Time on Raypower, cited a presentation the minister made last Wednesday at the National Assembly as proof that the minister was working hard on the provision of affordable housing.

He said in a long interactive session with members of the House Committee on Housing in the National Assembly, Fashola unveiled plans for low cost housing across Nigeria.

Adebayo promised that the minister’s presentation would be deliberated upon during the forthcoming Abuja Housing Show. He

L-R; Past President, Nigerian Academy of Engineering, Dr, Edet Amana; in-coming President, Mrs. J.O. Maduka; outgoing president, Mr. R. l. Salawu; GMD, Arco Group Plc, Mr. Alfred Okoigun and his wife, Julie at the 2016 Academy Technology dinner/lecture in Lagos... recently ABIODUN AJALA

listed questions that Abuja Housing Show would seek answers to as; Do we have a

financing problem or is the problem really that we are not able to access financing sources

that are available?; How can we encourage more private investment and participation in affordable housing?; How can we increase the availability of mortgage financing, both construction loans and long-term mortgage financing?; What incentives do estate developers need to develop affordable homes for low income earners?; How can we establish rent-to-own scheme for Nigerian workers?; Is there any way the Federal Government can establish special intervention funds for housing?; How can we use the income and sales tax systems to encourage more affordable housing?; Any prospect for zero or low income earners?

And are we facing a systemic problem with housing affordability and, if so, what options are available to tackle this chronic problem?

The 10th Abuja Housing Show scheduled for 18th to 20th July, 2016 will look at how to expand access to affordable housing in Africa.

He said, “Already 10 countries and 200 indigenous companies have confirmed their participation.” Excited by the minister’s presentation, the organiser of Abuja Housing Show has reiterated call on investment in affordable housing stressing that it is an area with huge and untapped potential.

Adebayo particularly wants foreign particiContinued on page 34

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T H I S D AY • TUESDAY, JUNE 28, 2016

PROPERTY & ENVIRONMENT

FCTA to Build 400 Housing Units Annually From Olawale Ajimotokan in Abuja The Federal Capital Territory Administration (FCTA) has said it would tackle the accommodation deficit of its workforce by building 400 units of houses every year.

This assurance was made

by FCT Minister, Muhammad Musa Bello, at a parley with the Head of Service of the Federation Mrs. Winifred Ekanem Oyo-Ita on the broadening of partnership

on the Federal Integrated Staff Housing Scheme (FISH).

Bello said the FCT 2016 statutory budget has made provision for the project, which he reiterated would improve the welfare of the workers and boost the housing demand for federal capital city that is growing at the rate of 20 per cent annually.

He lamented the plight of middle and junior level officers who do not own properties in the city. “Before I was appointed Minister, I had the

impression that everybody in the FCTA was also a landlord. But to my surprise, I realized that a number of the staff, particularly those in the middle level and junior cadre do not own properties in the city. Some of them have worked here for so many years, processing land applications, processing files, giving approvals, providing services, but they have been tenants in this city. Some of them never had the opportunity of occupying the houses that

were sold some years back.”

Oyo-Ita lamented that accommodation had become a challenge for civil servants since 2001 as workers who could not benefit from the monetization policy in existence then, now either have to build houses at huge costs or are facing tenancy issues with landlords.

She stressed that FISH to be pursued at different ministerial platforms, will ease workers’ accommodation burden through private development.

Last week, the federal government signed a Memorandum of Understanding (MoU) with Shelter Habitat under a United Nations supervised scheme, to provide 10,000 units of affordable accommodation for public workers.

The HoS pleaded with the FCT Administration to support the scheme by allocating a piece of land for the development of the housing estate and other infrastructure paramount to the project.

Bello assured that he was

ready to support FISH objective, even if it means retrieving lands that were previously allocated to other government institutions.

While lamenting that pockets of houses were built in the past without proper linkage with the city centre in terms of access road, power lines, water lines and sewage, the minister said the FCTA has concluded plans to revamp its mass housing programme to make it more inclusive and responsive to the requirements of Nigerians, especially the civil servants.

Lafarge Africa Promises to Contribute to Nigeria’s Housing, Infrastructure Lafarge Africa Plc’s is poised to contribute to the nation’s socio-economic development through support for housing and infrastructure.

Chairman, Board of Directors of Lafarge Africa Plc., Mr. Mobolaji Balogun, stated this at the company’s Shareholders’ Forum, recently.

Balogun said “Lafarge Africa Plc., vision is ‘Building a stronger Nigeria safely, ethically and sustainably through innovative construction solutions’. This is clearly a commitment to contributing to the Nigerian economy in various ways such as more housing and infrastructure as well as strong initiatives in sustainable development. It also means building a stronger team in Nigeria with the responsibility to take our company to the highest levels of performance and success.”

The shareholders’ forum, he said was “an integral part of our interaction and collaboration with our shareholders, in recognition of your role as key stakeholders in our business.

“This forum provides an opportunity to give an update on the activities of the company and get your feedback as well as contributions on how we can continue to grow the business and make stronger contributions to the socio-economic development of Nigeria.”

Giving a brief on Lafarge, he said, “Our Company started production over 55 years ago and today, the business has grown significantly with giant strides made, thanks to the support of all stakeholders, particularly those of you seated in this room as well as the people you represent. In 2015, we continued to build on the successful completion of the Lafarge Africa asset consolida-

tion transaction through some strategic initiatives, including increasing our shareholding in Ashakacem to 82.46% via a Mandatory Tender Offer and acquisition of further stake in Unicem.” He said, “On-going till Friday July 1st 2016 is Ashakacem’s Voluntary Tender Offer, providing opportunity for the minorities to participate in a much larger growth platform, which Lafarge Africa represents. I encourage you and your members to accept the Tender, which in simple terms creates the immediate and direct advantage of moving from investors in AshakaCem with 1mtpa cement production capacity to Lafarge Africa with 12mtpa and an additional 2,5mtpa due for commissioning by the end of 2016. The consideration offered for the tender is quite favourable to shareholders of AshakaCem. “Last Thursday, your Company signed the largest ever dual series bond issuance by a corporate in Nigeria’s debt capital markets for N60billion.

The proceeds of the bond issuance, which was concluded following a book build, with the order book over-subscribed, will be used to part-refinance the debt of its wholly-owned subsidiary, UniCem. “The above and many more initiatives to build a value adding platform for all stakeholders and in particular, our shareholders would not have been possible without your full support. I therefore wish to thank and congratulate our shareholders, my colleagues on the Board of Directors as well as the Management of our great Company for their foresight and spirited efforts at positioning the organization for greater successes in the future.”

R-L Propertygate Development and Investment Plc’s Company Secretary, Miss Zainab Bakare; Managing Director/CEO, Mr. Adetokunbo Ajayi; Directors: Mr. Peter Folikwe; and Mr. Wole Ogungbola, at the 7th annual general meeting of Propertygate in Lagos… recently

Safetrust Declares N150.6m Profit Before Tax Safetrust Mortage Bank Limited has declared an impressive N150.6m profit before tax (PBT) for the financial year ended 2015 representing an increase of 41.8 percent on the figure for the previous financial year on the account audited by Messrs KPMG. The declaration was made by the Chairman of the Board of Directors, Mr. Akin O. Opeodu in an address issued at the Annual General Meeting (AGM) of the Mortgage Bank held at Eko Hotel & Suites, Lagos on the 7th day of June, 2016.

Also declared by Opeodu was gross earnings of N1.8billion and total assets which stood at N9billion the while the

shareholders’ funds stood at N2.8billion representing 1.52 percent growth over the previous financial year’s figure of N2.75billion. Following the impressive performance, the shareholders are to be rewarded with a good chunk of the profit, N84,337,500 as dividend at 5k per share.

Regarding the business outlook in the country, Opeodu said that, “we are continuously optimistic on the outlook of the 2016 financial year. Whilst business and customer confidence remain fragile, the level of activity and Government’s commitment to improving the real sector gives a base for the growth of the Nigerian

economy”. But he warned that the country needed “to brace up for likely shocks by developing the appropriate resilience to such risks”.

The Chairman also advised that, “to ensure a sustained economic uplift, the 2016 FGN Budget must be fully implemented”, positing that “lower interest rate regime should be put in place to support economic activities, reform our Governance structure, improve on the efficiencies of our labour market and simplify our process for doing business.”

To brace up for better performance in 2016, he stressed that Safetrust had taken steps to diversify the revenue base

while leveraging inherent opportunities in the outlook for continuous revenue growth. He maintained that the Mortgage Bank would also continue to strengthen its risk management capabilities to ensure effective mitigation of existing risk factors in their domestic operations.

Safetrust is managed by a 9-man Board of Directors that also has Mr. Yinka Adeola as Managing Director whose voluntary retirement was announced by the Chairman at the AGM while Mr. Akintayo Oloko, an Executive Director of the Bank was appointed by the Board as the new Managing Director.

ABUJA HOUSING SHOW PROMOTER COMMENDS FASHOLA ON PROPOSED LOW INCOME HOUSING pants in the 10th Abuja Housing Show to come with resources to invest in affordable housing saying, “President Muhammadu Buhari government has good plans for foreign investors.”

Participants from Turkey, China, Netherlands, UK, USA, Ghana, South Africa, Ireland, Kenya and Brazil have shown commitment to come.

The housing promoter maintained that Nigeria needs support from international financial organisations to re-engineer the mortgage system.

Minister of Power, Works and Housing Fashola is the Chief Host of the 10 Abuja Housing Show while the Minister of the Federal Capital Territory (FCT) Muhammad Bello is Guest of Honour. The opening ceremony will

feature participation of members of National Assembly where the issue of legislative barriers to Housing Development in Nigeria will be handled as Senator Osita Izunaso, National organising secretary of APC will be the Guest Speaker, while Senate President Bukola Saraki will be special Guest of honour.

He advised state Commissioners of Lands and Urban Development to use the forthcoming Abuja Housing Show to interact with professionals in all areas of housing/construction industry to get new ideas.

The Abuja Housing Show is an annual one stop-shop for real estate stakeholders presenting new products, innovative services and technology and it’s the largest in West

Africa. The theme of the event is “Expanding Access to Affordable Housing in Africa” and will be declared open by Vice President Yemi Osinbajo. Speakers from Spain, South Africa, USA, Gambia and Nigeria have been carefully selected to deliver lectures on diverse topics.

The major Guest speakers are: Hakeem Ogunniran MD of UPDC; Loren Zanin of Lafarge; the MD of Hydraform from South Africa, Mr Robert Plattner; MD of Global Green Built from Spain, Mr Alejandro Pons; Mr Mustapha Njie, MD/CEO TAF Homes, Gambia; Prof. Mustapha Zubairu, FUT Minna; and Prof. Charles Inyangete MD of NMRC. Other eminent speakers include, Richard Esin, acting MD of FMBN; Kunle Faleti, Mortgage

Consultant NHFP; Abiodun Oki, Special Adviser to the Minister of Power, Works and Housing; Surv. Ugochukwu Chime, President, Real Estate Developers Association of Nigeria; Prof. Mohammed Al-min, MD Federal Housing Authority; Sa’adiya Aminu, COO of Urban Shelter; Dr. Chii Akporji, Executive Director NMRC; and Sen. Osita Izunazo, National Organising Secretary APC. Adebayo said there would be lottery and award dinner to mark the 10th anniversary of the show and appreciate stakeholders for their efforts in the industry.

He said the star prize for the lottery is a vast piece of land to be won through a raffle draw.

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TUESDAY JUNE 28, 2016 • T H I S D AY

INTERNATIONAL

email:foreigndesk@thisdaylive.com

Italy Rescues over 3,300 Migrants I t a l i a n c o a s t g u a rd a n d n av y s h i p s re s c u e d ov e r 3 , 3 0 0 m i g ra n t s i n 2 6 separate operations in the M e d i t e r ra n e a n ov e r t h e weekend, a spokesperson for the Italian navy told Reuters.

The people were picked up from 25 dinghies and one boat, all north of t h e L i bya n c o a s t , t h e C o a s t G u a rd s a i d i n a s e p a ra t e s t a t e m e n t . T h e n av y s p o k e s p e r s o n s a i d one adult was found dead

and another four injured migrants were transported by helicopter to the nearest hospital, on the island of Lampedusa.

I t a l y i s o n t h e f ro n t l i n e o f E u ro p e ’s wo r s t immigration crisis since

O n F r i d ay s h i p c rew s rescued more than 2,000 people from overcrowded boats. Improved weather conditions in the Mediterranean encourage more migrants and their human smugglers

World War Two, with little sign of any slowdown in the flow of people coming from North Africa. About 60,000 boat migrants have been brought to Italy so f a r t h i s ye a r, a c c o rd i n g to the Interior Ministry.

t o a t t e m p t t h e c ro s s i n g despite the dangers involved. More than 3,700 migrants died in the Mediterranean last y e a r, a c c o r d i n g t o t h e I n t e r n a t i o n a l O rg a n i s a tion for Migration.

Political Crisis Deepens as Brexit Vote Hits Pound, Markets Britain’s vote to leave the European Union sent new shockwaves through financial markets yesterday, despite efforts by the country’s leaders to end the deep political and economic uncertainty unleashed by the decision.

Finance minister, George Osborne, said the British economy was strong enough to cope with the volatility caused

by Thursday’s referendum, the biggest blow since World War Two to the European goal of forging greater unity.

But the pound later sank to its lowest level against the U.S. for 31 years and British shares continued the fall that began last week when Britons confounded expectations by voting to end 43 years of EU membership.

Chinese Premier Li Keqiang said uncertainties over the global economy had heightened and called for a “united, stable EU,

and a stable, prosperous Britain”.

But with the ruling Conservatives looking for a new leader after Prime Minister David Cameron’s resignation on Friday and lawmakers from the opposition Labour party stepping up a rebellion against their leader, Britain sank deeper into political and economic turmoil.

“There’s no political leadership

in the UK right when markets need the reassurance of direction,” said Luke Hickmore of Aberdeen Asset Management, expressing the view of many in the City of London financial center.

Although Cameron is staying on until October as a caretaker, he refused to start formal moves immediately to pull Britain out

of the EU. This prompted many European leaders to demand quicker action by Britain, the EU’s second largest economy after Germany before the vote.

“France like Germany says Britain has voted for Brexit. It should be implemented quickly. We cannot remain in an uncertain and indefinite situation,”French finance minister Michel Sapin

said on France 2 television.

Guenther Oettinger, a German member of the EU’s executive European Commission, also issued a warning.“Every day of uncertainty prevents investors from putting their funds into Britain, and also other European markets,”he told Deutschlandfunk radio. “Cameron and his party will cause damage if they

wait until October.”

German Chancellor Angela Merkel has taken a softer line, underlining the need to continue a positive trade relationship with Britain, a big market for German carmakers and other manufacturers. But a Merkel ally, Volker Kauder, made clear the exit negotiations would not be easy.

A real deal on Economy

US Mourns Mandela Washington Fellow, John Paul Usman Alex Enumah in Abuja The United States Mission in Nigeria has expressed sadness over the sudden death of a Mandela Washington Fellow, Paul Ojaojogwu Usman, who died in an accident on Saturday while hiking near Virginia Polytechnic Institute and State University, where he was studying civic leadership as a 2016 Mandela Washington Fellow.

In a press statement issued by the embassy in Abuja, the mission extended its deepest condolences to John Paul’s family and friends over what it described as a tragic loss.

According to the statement, John Paul was a rising star, devoted to the causes of sustainable development, children’s rights, and peacebuilding in Nigeria.

“His selection to the Mandela Washington Fellowship was a tribute to his drive, talent, and dedication to making his country’s civil society even stronger”. The mission added that the deceased would be remembered as a great citizen ambassador of Nigeria.

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TUESDAY JUNE 28, 2016 T H I S D AY

JOB OPPORTUNITY Position: Communications Coordinator Location: Abuja Do you have excellent program management skills? Do you have the ability to set and manage systems for effective program delivery? V4C is seeking for a highly skilled program management specialist with experience in work planning, coordination and management. We are looking for a team player with good inter-personal communication skills that will work across various program areas to implement a highly innovative communications strategy.

requirements are fully captured within the web service provider contracts

Responsible for development and tracking of milestones, ensuring quality of deliverables

Ensuring regular and periodic interaction between web service sub-contractors and V4C outputs

Coordinate content schedule from V4C point and Matrix management responsibility for content producers based in Nigeria to ensure they are delivering to schedule and timelines,

Ensure regular three way communication between mobile service provider, V4C and content producers

Responsible for ensuring outputs 1, 2, 3 and 4 monitoring requirements are well articulated and communicated to web service providers

Responsible for ensuring all outputs review monthly reports and provide consolidated feedback

Ensure timely and adequate monitoring and reporting of web statistics, data and performance and dissemination of such information to relevant stakeholders

Role Purpose The purpose of the Communications Coordinator role is to support the communications team with effective planning to ensure high efficiency and quality delivery of tasks and activities. The role will interface with other program areas to ensure smooth coordination and interface with communications unit and also serve to coordinate the programs digital space across program Minimum Education and Experience outputs.

Managing and coordinating inter agency and inter Key Responsibilities: department programs 1. Work planning and scheduling

Client Relationship and management

Support the Communications lead to develop Use of program management tools and applications annual, quarterly and monthly plans and schedules

Understanding digital content development process by collating all regular output activity plans and

Developing and managing complex budgets reports from communications advisers

Contracts negotiation and management

Regularly check and confirm with other outputs that

Strong Inter-personal communications skills communications requirements are reflected in the

Excellent understanding of Nigeria and international plans of relevant streams of communication business management practices

Coordinate with all relevant Communications staff to Microsoft project management tools and ensure all intervention areas are captured in periodic applications plans and have agreed and realistic timelines Value for Money application

Support and work with the Communications lead to A graduate degree in management, business, or ensure all work plans are costed and adequate social sciences budget provisions are made by developing and 5 to 7years' experience working in any of; maintaining timelines, schedules and reviews of Advertising/Marketing Communications, Corporate activities with communications advisers to ensure planning and strategy, Relationship and client draft work plans are produced management

Support the communications lead to track deliverable timelines and pre-empt possible For detailed Job Description and Application, slippage and notify the communications lead and follow the link: FAM of such http://www.thepalladiumgroup.com/jobs

Responsible for ensuring coordination of all program areas around key campaign moments and events Before you start the application process, please have such as IWD, 16 days of activism, programme big ready your detailed CV and a tailored cover letter, which deliverables etc. The position holder will ensure responds directly to the job description, highlighting clear plans are outlined, responsibilities and roles relevant skills and experience making you most suitable are agreed, meetings and updates are coordinated person for the position. Only shortlisted applicants will be contacted for interview.

2. Digital coordination

Develop ToRs and support the Communications Closing date for all applications: Monday 11th July lead on budget negotiations and supervise contract 2016 implementation by checking if deliverables match For more information about V4C, please visit agreed milestones www.v4c-nigeria.com

Responsible for ensuring outputs 1,2 3 and 4

T H I S D AY TUESDAY JUNE 28, 2016

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T H I S D AY •TUESDAY, JUNE 28 , 2016

BUSINESS/MONEYGUIDE

Ecobank: No Plan to Close Down Our African Subsidiaries Nume Ekeghe Ecobank Transnational Incorported (ETI) has reiterated commitment to its existing network of countries, just as it refuted recent reports over its plan to close some non-profitable subsidiaries.

The bank said it does not have any plan to close any of its subsidiaries.A statement by its Group Head, Corporate Communications and spokesperson for the Group CEO Ecobank, Mr. Richard Uku, explained:

“Ecobank is currently reviewing its business model to ensure that it deploys products that are profitable in the countries where it operates. In so doing, we may decide to exit certain products from some markets, and may also close one or more branches in some countries in favour of technology. However, this does not in any way translate to the planned closure of any of our subsidiaries.

“The closure of any Ecobank subsidiary would require a thorough situation analysis

and approval by the Board of Directors and shareholders of Ecobank, and no such closures are envisaged at this time.

As the largest pan-African banking institution, we remain committed to our existing network of countries.”

Earlier this week, the Chairman Mr. Emmanuel Ikazoboh was quoted by some online publications to have said the business model whereby “we are just expanding and posting our flags (in different countries) has to be reconsidered.”

AFC, Firm Move to Boost Power in Africa Obinna Chima The Africa Finance Corporation (AFC) and Harith General Partners (Harith) have merged their power sector assets, expertise and experience to create a new energy entity combining both renewable and non-renewable power generating assets in Africa.

On a continent where more than 620 million people live without electricity, this partnership, according to the firms, was formed to lead the way in power generation, and the integrated management of power infrastructure assets to deliver the requisite base load generation capacity to drive and accelerate growth in African economies. The joint venture’s near term portfolio is expected to supply reliable energy to over 30 million people in at least 10 African countries and has a combined gross operational and under-construction capacity of 1,575 MW. The firms explained that the joint venture will merge the AFC’s interests in Cenpower,

owner of the Kpone Independent Power Project under construction in Ghana, and Cabeolica, a wind farm that provides 20 per cent of Cape Verde’s energy needs, with those of the Pan Africa Infrastructure Development Fund (PAIDF) which is managed

by Harith. These include the Azura Edo IPP in Nigeria, the Lake Turkana Wind Power in Kenya, Kelvin Power Station in South Africa and the Rabai Thermal project in Kenya. Collectively this portfolio represents some of the largest projects in Africa’s energy sector.

The new venture will be in a position to develop and finance projects through corporate finance transactions and project finance, significantly reducing the lead time to bringing power projects to fruition. It will also have the benefit of a team of dedicated advisers that bring a wealth of development and operational experience in the African power sector.

Commenting on the launch, AFC President/CEO, Andrew Alli said: “We are delighted to be announcing this partnership with Harith. Our new joint

venture will make an invaluable contribution to improving generation capacity in countries across the length and breadth of Africa and by working together we can deliver tangible benefit for Africans, switching their lights on and stimulating positive economic growth on the continent.

“Power is one of AFC’s priority sectors and we dedicate considerable time and resources to driving development here.

Our total investments in energy amount to over $350 million and we were the first private sector institution to hit our target under President Obama’s Power Africa initiative, with total direct investments of $269 million and $1.2 billion of mobilised third party investments,” CEO of Harith and Chairman of Aldwych, Tshepo Mahloele said the purpose of the proposed merger was to combine the assets of Aldwych and AFC so as to create an African power entity that will have substantial capital, sector specific experience, a critical mass of existing assets and a pipeline of credible power projects.

Flour Millers, Wheat Farmers Sign MoU The Flour Millers Association of Nigeria (FMAN) has signed a memorandum of understanding (MOU) with Wheat Farmers Association of Nigeria (WFAN) in a major collaborative effort to boost wheat production in Nigeria. The agreement was signed in Abuja recently.

According to a statement, the key intention of the MOU was a commitment by both parties to further develop agriculture in Nigeria through wheat production.

FMAN expressed a willingness to purchase all the wheat produced by WFAN at a guaranteed price of N140,000 per metric tonne for the 2015/2016 farming season. Members of WFAN in turn expressed their desire to sell all of their wheat to FMAN at the agreed price.

Signing the MOU on behalf of

FMAN were its Vice-Chairman, Mr. Lanre Jaiyeola, and Executive Secretary, Alhaji Olalekan Saliu; while WFAN was represented by Alhaji Farouk R. Mudi, and Mr. Batari M. Dauda, representing the Executive Chairman of WFAN, Malam Saleh Mohammed Salim. Also present at the signing ceremony were Senator Heineken Lokpobiri; Minister of State for Agriculture and Rural Development, among others.

Speaking at the occasion, Jaiyeola, who is also the Managing Director of Honeywell Flour Mills Plc said: “This event marks a milestone in the development and growth of the Nigerian wheat value chain and aligns with FMAN’s objectives to provide affordable and nutritious flour based foods to Nigerians in addition to

developing the wheat value chain and contributing to the growth of agriculture in Nigeria.

This initiative seeks to replicate the modest successes achieved in our intervention in the Cassava Value Chain where Nigeria is the number one producer of Cassava in the world.”

He also expressed gratitude to the Minister of Agriculture and Rural Development, Chief Audu Ogbeh; the Governor of Kebbi State, Senator Abubakar Atiku Bagudu and; the officials of the Lake Chad Research Institute for their support.

On the part of WFAN, Mudi assured Nigerians that with the support of FMAN and LCRI, the farmers were ready to mobilise and produce the required quantity of wheat to meet demand.

MTN Appoints New CFO MTN Nigeria has appointed Adekunle Awobodu as Chief Financial Officer (CFO). According to the company, Awobodu will take over from Ferdi Moolman, who was appointed as CEO of the company in December 2015.

MTN revealed that Awobodu will serve as MTN’s strategic financial business partner and

lead the organisation in facilitating decision-making through sound business insights and analysis that drives business improvement and performance. Awobodu has over 22 years’ of professional experience and international exposure in finance. He holds a Bachelor’s degree in Finance & Banking from the University of

Group CEO, ETI, Ade Adeyemi

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

MARCH 2016 Broad Money (M2)

20,470,436.00

-- Narrow Money (M1)

9,040,817.68

---- Currency Outside Banks

1,441,365.03

---- Demand Deposits

7,599,452.65

-- Quasi Money

11,429,618.32

Net Foreign Assets (NFA)

5,551,714.27

Net Domestic Assets(NDA)

14,918,721.73 22,664,815.74

-- Net Domestic Credit (NDC) ---- Credit to Government (Net)

3,782,578.01

---- Memo: Credit to Govt. (Net) less FMA

4,991,246.39

---- Memo: Fed. and Mirror Accounts (FMA)

-1,208,668.38

---- Credit to Private Sector (CPS)

18,882,237.7

--Other Assets Net

-7,746,094.02

Reserve Money (Base Money)

5,758,634.07

--Currency in Circulation

1,811,090.48

--Banks Reserves

3,383,756.72 • Source - CBN

MANAGED FUNDS Initial Price (N) Stanbic Balanced Fund

Buying Price(N)

Selling Price

1,660.29

1,685.29

Stanbic IBTC NEF

1,000.00

11,002.32

11,326.67.11

Stanbic SIBond

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

13.1030 (Yield % ) • Monetary Policy Rate - 13%

OPEC DAILY BASKET PRICE AS AT MONDAY 27, JUNE 2016 Lagos and a Masters’ degree in Finance from the University of Leicester, UK. Awobodu began his career in 1994 with Procter and Gamble (P&G) Nigeria. He joined MTN Nigeria’s Finance Division in February 2002 as Fixed Assets Manager and rose through the ranks, becoming the first Nigerian CFO of MTN Iran.

The price of OPEC basket of thirteen crudes stood at $44.88 a barrel on Friday, compared with $46.16 the previous day, according to OPEC Secretariat calculations.

The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

SOURCE: OPEC headquarters, Vienna

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T H I S D AY • TUESDAY, JUNE 28, 2016

Nigeria’s top 50 stocks based on market fundamentals

27-June-16 24-June-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

01 Dangote Cement Plc

192.11

200.20

-4.04%

3,273,651,877,574.55

10.64

18.81

6.94

4.00%

5.29

02 Nigerian Breweries Plc

144.00

145.00

-0.69%

1,141,790,527,872.00

5.37

27.01

4.16

2.48%

6.75

03 Nestle Nigeria Plc

855.00

855.00

0.00%

677,721,095,460.00

29.95

28.55

4.48

3.39%

17.83

04 Guaranty Trust Bank Plc

23.00

24.15

-4.76%

676,917,122,152.00

3.38

7.15

3.10

7.33%

1.72

05 Zenith Bank Plc

15.96

17.00

-6.12%

501,088,040,824.56

3.37

5.05

1.23

10.59%

0.90

06 Lafarge Africa Plc.

73.51

73.51

0.00%

334,830,832,053.10

5.93

12.40

1.25

4.08%

1.90

07 Ecobank Transnational Incorporated

16.30

16.74

-2.63%

299,097,684,804.50

1.39

12.02

0.60

3.70%

0.82

08 Forte Oil Plc.

190.00

200.00

-5.00%

247,471,409,570.00

4.45

44.96

2.09

1.73%

5.63

09 Seplat Petroleum Dev. Co. Ltd

331.60

348.97

-4.98%

183,477,699,790.80

23.48

14.86

1.71

4.56%

0.69

10 United Bank for Africa Plc

4.73

4.90

-3.47%

171,602,159,503.06

1.64

2.98

0.56

12.24%

0.53

11 Access Bank Plc

5.90

5.93

-0.51%

170,675,032,622.90

2.28

2.60

0.51

9.27%

0.47

12 Guinness Nig Plc

109.90

111.80

-1.70%

165,497,111,861.20

0.78

143.65

3.38

0.00%

3.77

16.15

17.00

-5.00%

161,500,000,000.00

2.04

8.35

1.44

0.59%

1.51

4.05

4.14

-2.17%

145,375,935,807.60

0.42

9.81

0.29

3.62%

0.26

15 Unilever Nigeria Plc.

33.00

33.00

0.00%

124,848,776,250.00

0.32

104.71

2.11

0.15%

15.60

16 P Z Cussons Nigeria Plc

22.65

21.58

4.96%

89,931,305,069.25

1.10

19.67

1.18

6.02%

2.04

17 7-Up Bottling Comp. Plc

140.00

140.00

0.00%

89,682,650,820.00

11.12

12.59

1.15

1.57%

3.74

18 Oando Plc

6.65

6.99

-4.86%

80,030,215,645.10

0.50

13.98

0.15

10.73%

0.53

19 Dangote Sugar Refinery Plc

6.55

6.89

-4.93%

78,600,000,000.00

0.96

7.17

0.82

7.26%

1.42

20 Transnational Corporation Of Nigeria Plc

1.99

2.00

-0.50%

77,054,784,875.75

0.05

38.12

1.90

0.00%

0.88

200.00

195.00

2.56%

67,904,367,400.00

11.92

16.36

0.32

7.18%

4.08

22 International Breweries Plc.

19.99

19.97

0.10%

65,852,043,107.20

0.64

31.24

3.56

1.25%

5.46

23 Julius Berger Nig. Plc.

46.20

44.00

5.00%

60,984,000,000.00

1.85

23.80

0.43

3.41%

2.39

169.00

169.00

0.00%

60,940,599,278.00

13.51

12.51

0.95

4.26%

3.97

25 Flour Mills Nig. Plc.

22.68

23.75

-4.51%

59,517,699,401.16

1.84

12.90

0.19

8.42%

0.61

26 Diamond Bank Plc

2.26

2.37

-4.64%

52,342,479,067.68

0.24

9.70

0.25

0.00%

0.26

13 Stanbic IBTC Holdings Plc 14 FBN Holdings Plc

21 Total Nigeria Plc

24 Mobil Oil Nig Plc.

27 Sterling Bank Plc

1.51

1.58

-4.43%

43,473,531,370.26

0.36

4.42

0.41

5.70%

0.48

19.99

19.66

1.68%

38,398,079,096.13

2.70

7.28

0.52

5.09%

0.51

1.27

1.33

-4.51%

36,782,483,828.84

0.48

2.77

0.26

12.03%

0.21

30 Presco Plc

36.50

36.50

0.00%

36,500,000,000.00

3.28

11.13

3.21

0.27%

1.63

31 Cadbury Nigeria Plc

18.00

18.00

0.00%

33,807,636,720.00

3.21

5.61

1.00

7.22%

3.27

32 FCMB Group Plc

1.66

1.68

-1.19%

32,872,499,896.46

0.24

6.99

0.22

5.95%

0.20

33 Wema Bank Plc.

0.78

0.79

-1.27%

30,088,083,543.18

0.06

13.09

0.66

0.00%

0.66

34 Okomu Oil Palm Plc

31.01

31.50

-1.56%

29,580,749,100.00

2.76

11.42

3.09

0.32%

2.49

35 Glaxo Smithkline Consumer Nig. Plc.

23.22

22.12

4.97%

27,768,252,051.36

0.81

27.41

0.86

1.36%

2.01

2.58

2.56

0.78%

27,090,000,000.00

0.16

16.17

1.62

1.95%

1.54

34.68

34.68

0.00%

24,276,000,000.00

2.49

13.96

3.44

3.32%

15.97

38 Custodian And Allied Insurance Plc

4.00

4.09

-2.20%

23,527,456,780.00

0.71

5.73

0.81

3.42%

0.92

39 National Salt Co. Nig. Plc

8.14

8.22

-0.97%

21,566,428,396.92

0.79

10.34

1.35

6.69%

3.07

40 Honeywell Flour Mill Plc

2.03

2.08

-2.40%

16,098,301,245.74

0.14

14.72

0.34

7.69%

0.77

41 Skye Bank Plc

1.08

1.10

-1.82%

14,990,725,522.80

0.85

1.29

0.11

27.27%

0.11

42 Unity Bank Plc

1.09

1.14

-4.39%

12,741,378,356.78

0.54

2.10

0.21

0.00%

0.15

43 Continental Reinsurance Plc

1.15

1.12

2.68%

11,928,655,958.80

0.21

5.42

0.59

10.71%

0.75

44 Cement Co. Of North.Nig. Plc

7.45

7.45

0.00%

9,362,249,356.70

0.96

7.79

0.72

1.34%

0.92

45 UACN Property Development Co. Limited

4.50

4.50

0.00%

7,734,374,977.50

1.81

2.49

0.69

15.56%

0.23

46 Nigerian Aviation Handling Company Plc

4.46

4.46

0.00%

7,244,015,625.00

0.33

13.47

0.85

4.48%

1.19

47 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,126.00

0.10

5.16

0.94

6.00%

0.45

48 Resort Savings & Loans Plc

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

49 AIICO Insurance Plc

0.74

0.77

-3.90%

5,128,351,315.20

0.28

2.79

0.16

6.49%

0.55

50 Fidson Healthcare Plc

2.44

2.22

9.91%

3,660,000,000.00

0.50

4.47

0.41

2.25%

0.53

28 U A C N Plc. 29 Fidelity Bank Plc

36 Mansard Insurance Plc 37 Cap Plc

TOTAL TOTAL MARKET CAP % OF MARKET CAP Annotation - MA* = Simple Moving Average

9,565,360,939,280.08 10,248,609,736,000.40 93.33%

Table 1 Market Statistics Mkt Indicators NSE All Share Index NSE Market Cap (N'Trillion) Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Open Close Change % 24-June-16 27-June-16 30,649.66 10.53

29,840.23 10.25

-2.64 -2.64

126.37 9.84

122.85 9.57

-2.79 -2.79

Table 3 Top 5 Gainers Stock

Open Close Change % 24-June-16 27-June-16

Fidson Healthcare Plc Julius Berger Nig. Plc. Glaxo Smithkline Consumer Nig. Plc. P Z Cussons Nigeria Plc Continental Reinsurance Plc

2.22 44.00 22.12

2.44 46.20 23.22

9.91 5.00 4.97

21.58 1.12

22.65 1.15

4.96 2.68

Table 4 Top 5 Losers Stock

Open Close Change % 24-June-16 27-June-16

Zenith Bank Plc Forte Oil Plc. Stanbic IBTC Holdings Plc Seplat Petroleum Dev. Co. Ltd Dangote Sugar Refinery Plc

17.00 200.00 17.00 348.97 6.89

15.96 190.00 16.15 331.60 6.55

-6.12 -5.00 -5.00 -4.98 -4.93

Market declines by 2.64% owing to profit taking Market pulse on the Nigerian Stock Exchange (NSE) today – Monday, June 27, 2016 closed bearish as the stock market closed red due to intense sell pressure. This was further highlighted by negative performances from all NSE Sub sectors: Banking, Insurance, Consumer Goods and Oil & Gas. Furthermore, trading activities decreased in volume as 375.22 million shares worth N4.03 billion in 4,229deals exchanged hands today.

This is a decrease from the 444.51 million shares worth N3.70 billion in 5,565 deals carried out on Friday. Topping in volume terms was Transnational Corporation Of Nigeria Plc, N.E.M Insurance Co. (Nig) Plc and Zenith Bank Plc while Guaranty Trust Bank Plc and Zenith Bank Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed negative with a 2.64% (-809.43) decrease to close at 29,840.23 from 30,649.66 the previous trading day. Market Capitalization appreciated in tandem to N10.25 trillion from N10.53 trillion of prior trading day. Similarly, the Thisday BGL 50 Index followed suit with a decrease of 2.79% to close at 122.85 from 126.37 recorded the previous trading day, while its market capitalization stood at N9.57 trillion from N9.84 trillion of the previous trading day.

A total number of 18 stocks gained on the bourse today while 40 stocks declined, 40 leaving stocks unchanged. Fidson Healthcare Plc emerged the week’s toast of investors as it again topped the Thisday BGL 50 Index gainers’ list with a gain of 9.91% to close at N2.44 per share. It was followed

by Julius Berger Nig. Plc with a gain of 5.00% to close at N2.22 per share. Others on the gainers list include: GlaxoSmithkline Consumer Nig. Plc, P Z Cussons Nigeria Plc and Continental Reinsurance Plc, while on the decliners’ list; Zenith Bank Plc led with a loss of 6.12% to close at N1.68 per share. It was followed by Forte Oil Plc with a loss of 5.00% to close at N190.00 per share. Others on the losers list include: Stanbic IBTC Holdings Plc, Seplat Petroleum Dev. Co. Ltd and Dangote Sugar Refinery Plc. REQUIRED DISCLOSURE This report has been prepared by BGL Plc. BGL Plc does and seeks to do business with companies covered in its research reports. As a result, the firm may have a conflict of interest that could affect the objectivity of this report. Investors should use this report as one of many other factors in making their investment decisions.

For more details go to www.thisdaylive.com

44

T H I S D AY •TUESDAY, JUNE 28 , 2016

MARKET NEWS

Champion Breweries Shares Soar on Merger Prospect Goddy Egene and Eromosele Abiodun Shares of Champion Breweries Plc have maintained a consistent appreciation at the stock market as investors take position ahead of possible merger with Nigerian Breweries Plc. The shares soared by 44.35 per cent last week alone, rising from N3.45 to N4.98. In all, the stock has jumped by 48 per cent

since the beginning of the year.

Some market analysts linked the renewed demand for Champion Breweries to possibility of its being merged with Nigerian Breweries.

Both companies have Heineken as their core investors and shareholders of Champion Breweries recently called on the core investors to merge the operations of the two firms.

According to them, merging

Champion Breweries with Nigerian Breweries would lead to better value creation for all stakeholders.

The shareholders said the on-going consolidation in the breweries sector has placed a multiple-entities strategy in disadvantage as major investors such as SABMiller and Diageo consolidate their operations in Nigeria to create critical mass that can drive turnover in the

increasingly competitive market.

Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, had said Heineken should, without delay, put arrangements in place to merge Champion Breweries with Nigerian Breweries in order to optimise the potential of the Akwa Ibom State-based company and bring benefits to minority retail shareholders.

Champion Breweries’ principal activities now consist of contract brewing services to Nigerian Breweries as well as brewing and packaging of Champion Lager Beer and non-alcoholic Champ Malta.

But Okezie noted that with the envisaged increased competition in the industry, Champion Breweries lacks the network and scale to stand alone, adding that the company

will do better with combination of its business with Nigerian Breweries.

Another shareholder, Mr. Anthony Omojola, a member of the Independent Shareholders Association of Nigeria (ISAN), said the merger of Champion Breweries with Nigerian Breweries will the best thing to happen as such will be in line with the global best practice when it comes to unlocking synergies.

DAILY STOCK MARKET REPORT T H E

N I G E R I A N

STO C K

E XC H A N G E

T H I S D AY TUESDAY JUNE 28, 2016

45

46

TUESDAYSPORTS

T H I S D AY ˾ TUESDAY JUNE 28, 2016

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

W O R L D C U P 2 0 1 8 Q UA L I F I E R S

Eagles Job: NFF Settles for Frenchman Paul Le Guen Duro Ikhazuagbe

The leadership of the Nigeria Football Federation (NFF) is believed to have settled for the choice of Frenchman, Paul Le Guen as the manager to lead the Super Eagles campaign to qualify for the next FIFA World Cup in Russia in two years time.

With the Russia2018 draws pitting Nigeria with Africa’s football power houses like Algeria, Cameroun and Zambia in Group B, THISDAY learnt at the weekend that the NFF leadership weighed all the options available from the coaches that applied for the job vacated by ex international, Sunday Oliseh, and concluded for the former Olympique Lyon and Cameroun coach.

A top level source at the Glass House in Abuja hinted that Le Guen appears to have a first hand knowledge of almost all top Nigerian professional players in Europe and is ready to roll

with them as soon as possible.

“He knows our players very well and how to use them. In our meeting with him earlier, Paul (Le Guen) demonstrated to us his capacity to turn around our football. We are also looking at reaping from his knowledge of both Cameroun where he coached the Indomitable Lions and Algeria who are desperate to have him,” revealed the top level official.

Le Guen, 52, who was sacked as Oman’s head coach after his side lost 2-1 to Turkmenistan on November 17 last year, is also believed to have agreed a three-year $50,000 per month deal to lead Eagles to the promise land in Russia.

Nobody at the Glass House was ready to speak on how the cash-strapped NFF was going to fund the contract as the Solomon Dalung led Federal Ministry of Youth and Sports has made it clear that hiring a foreign manager for Eagles

was not in their budget.

However, THISDAY checks revealed further that a top financial house with partnership with the NFF may have agreed to pick the bill even as there are fears that the bank’s magnanimity may cause bad blood within the rank and file

of coaches in the employment of the federation.

Apart from the Super Eagles, all the other coaches of the Under-23, Under-20 and Under-17 male teams are being owed various sums of money in wages. The story is the same with the coaches handling the

women’s teams from the Super Falcons to the Under-17 teams.

Other foreign managers also in fray to grab the job from Le Guen who also once coached Scottish side Rangers and PSG, include Felix Magath, Harry Redknapp, Henrique Calisto, Tom Saintfiet and the man

who gave Nigeria her first ever ticket to the World Cup in 1994, Dutchman Clemens Westerhof. Even Westerhof’s former assistant on the Eagles job, Jo Bonfrere is not left out in the race to handle the three-time African champions.

…Eagles to Play All Home Games in Abuja Olawale Ajimotokan in Abuja

The Super Eagles will play their World Cup 2018 home qualifying matches at the National Stadium, Abuja, THISDAY checks revealed last night.

The return will be the first time the national team will be playing at the nation’s capital since they defeated Sudan 3-1 on October 15, 2014, in an Africa Cup of Nations (Equatorial Guinea 2015) qualifier.

Nigeria is pitched in an onerous “Champions League’’ Group B made up of Algeria, Cameroun and Zambia- all former winners of the Africa Cup of Nationsfollowing last Friday’s draw in Cairo by CAF. The Eagles will begin their bid for a sixth World Cup slot, when they travel to Zambia on October 3 for the opening group encounter before they host the Indomitable Lions of Cameroun on September 2, 2017 at the National Stadium, Abuja.

THISDAY scooped that Sports Minister, Solomon Dalung, yesterday at a meeting with the NFF leadership, instructed that all three home fixtures be played in Abuja.

The basis of his directive is hinged on security in addition to

allowing many Nigerian spectators watch the fixtures in view of the profile of opposing teams.

Apart from that ‘Glasshouse’ is cautious of a poor decision of organising a match of high magnitude in a stadium with little capacity for large spectators.

The federation is still smarting from the consequences of the security breaches and poor crowd control that marred the Africa Cup of Nations qualifier between Nigeria and Egypt in Kaduna on March 25.

That shoddy arrangement where over 40,000 fans were packed into a stadium that could barely contain 15,000 spectators made CAF to impose a $5,000 fine on NFF, with a warning of stiffer sanctions in the event of a repeat in the future.

Eagles played all their Brazil 2014 home matches at the U.J. Esuene Stadium, Calabar, which has a limited space for only 20,000 spectators.

The National Stadium, built in 2003 for the All Africa Games same year, has a capacity for 60,000 and was the theatre when Nigeria realised her dream of qualifying for the first World Cup held on African soil at South Africa 2010.

Djokovic Unchanged at Top of ATP Rankings Novak Djokovic of Serbia tops an unchanged ATP ranking, leading 10 others in men’s rankings as he begins the defence of his Wimbledon title.

Djokovic, who beat Andy Murray in the French Open earlier this month, stays on 16,950 points, with Murray second on 8,915, the rankings released on Monday.

ATP top 10 as of June 27 (previous ranking in parenthesis): 1. (1) Novak Djokovic, Serbia, 16,950 points 2. (2) Andy Murray,

Britain, 8,915 3. (3) Roger Federer, Switzerland, 6,425 4. (4) Rafael Nadal, Spain, 5,335 5. (5) Stanislas Wawrinka, Switzerland, 5,035 6. (6) Kei Nishikori.

Japan, 4,155 7. (7) Milos Raonic, Canada, 3,175 8. (8) Dominic Thiem, Austria, 3,175 9. (9) Tomas Berdych, Czech Republic, 2,950 10.(10 Richard Gasquet, France, 2,905. (dpa/NAN) Meanwhile,Djokovic yesterday beat Briton James Ward 6-0 7-6 6-4 in the first round of Wimbledon.

Iceland players celebrating the famous 2≠ 1 victory against England last night

PHOTO AFP

Iceland ‘Freezes’ England from Euro2016 England suffered a humiliating exit from Euro 2016 yesterday as the Three Lions lost 2-1 to Iceland in Nice.

Skipper Wayne Rooney’s fifth-minute penalty after Raheem Sterling had been fouled gave England a dream start.

But within 83 seconds Ragnar Sigurdsson prodded the ball past Joe Hart after a long throw had

caused chaos.

And Hart was at fault in the 16th minute when allowed a shot from Kolbeinn Sigþórsson to trickle over the line.

England - as they had in their previous matches - dominated possession but failed to create any clear cut chances.

Rooney and Dele Alli had long-range shots but Sigurdsson

came close to extending Iceland’s lead with an overhead kick that Hart parried on 53 minutes.

Even the introduction of Jamie Vardy for Sterling midway through the second half failed to ignite England as they went down to one of the worst results in their history against the smallest country ever to qualify for the finals.

RESULTS

Italy 2-0 Spain England 1-2 Iceland Q’FINAL FIXTURES Poland Vs Portugal Wales Vs Belgium Germany Vs Italy France Vs Iceland

Anyasi Confident of Enyimba’s Messi Retires from Argentina Lionel Messi has retired from most, but I couldn’t get it, so I Victory against Sundowns international duty after missing in a think it’s over.

Femi Solaja Enyimba FC Chairman, Felix Anyasi-Agwu is confident that the Nigerian representative in the elite club competition has all it takes to getting the result against host, Mamelodi Sundowns of South Africa.

The two teams will battle tomorrow at the Lucas Moripe Stadium from 7pm Nigerian time with contrasting fortune from the opening Group B round of matches.

While Sundowns are aiming to pick the maximum points and sit atop the group following the expulsion of Entente Setif of Tunisia whom they were leading before the match was abandoned, former champions, Enyimba are hoping for a bounce back journey after losing at home to Zamalek on Match-day one in Port Harcourt.

“We are not under any pressure to play this match and the players are in the right frame of mind to get the result in South Africa on Wednesday,” Anyansi responded at the Murtala International Airport on Sunday night before the team’s departure.

“The loss in Port Harcourt was a major setback and we have used the domestic game after the loss to keep ourselves back on track and all hands are on deck to ensure that we get positive result from the match,” he remarked.

Enyimba were warmly received by the Nigerian community led by Ikechukwu Anyene at the O.R. Tambo International Airport, Johannesburg.

Later, they moved to Pretoria and had their first training session yesterday evening.

penalty shootout as Argentina lost a fourth major final in nine years.

“For me, the national team is over,”he said after defeat by Chile in the Copa America final. “I’ve done all I can. It hurts not to be a champion.”

Messi, 29, has won eight La Liga titles and four Champions Leagues with Spanish side Barcelona.

As well as losing two Copa America finals on penalties to Chile, Messi was in the Argentina side beaten 1-0 by Germany in the 2014 World Cup final.

The forward, who was been awarded the Ballon d’Or five times, was also on the losing side against Brazil in the 2007 Copa America final.

‘Mexit’ leaves Messi fans pleading for change of heart “It’s been four finals, I tried,” added Messi, who made his debut for Argentina in 2005 and has played 113 times for his country.

“It was the thing I wanted the

“I think there’s a lot of people who want this, who obviously are not satisfied, as we are not satisfied reaching a final and not winning it.

“It’s very hard, but the decision is taken. Now I will not try more and there will be no going back.”

Messi had scored five times at this year’s Copa America, including a superb free-kick in the semi-final win over hosts the USA. That goal made him his country’s record scorer with 55 goals, eclipsing the 54-goal mark of striker Gabriel Batistuta.

Argentina and Manchester United goalkeeper Sergio Romero said he hoped Messi would “reflect” on his decision and reconsider.

“I think he spoke while he was heated, because a beautiful opportunity escaped us,” said Romero.“I can’t imagine a national team without Messi.”

47

T H I S D AY TUESDAY JUNE 28, 2016

REQUEST FOR EXPRESSIONS OF INTEREST Federal Republic of Nigeria

Third National Urban Water Sector Reform Project Loan No./Credit No./ Grant No.: 5416-NG Consultancy Services for Supervision of Civil Works (Water Supply - Lot 2) Reference No.: PHWSS/IDA/C/QCBS/001 1. This invitation follows the General Procurement Notice (GPN) for this project that appeared in UNDB online, Issue No. AfDB 752-11-14 of 11th November, 2014 and on the World Bank External Website.

2 ORGANIZATION OF CONSULTANT

2. The Federal Government of Nigeria on behalf of Government of Rivers State of Nigeria has applied for financing from the World Bank toward the cost of the Third National Urban Water Sector Reform Project, and intends to apply part of the proceeds for consulting services.

2.2 Fields of operation relevant to the project

3. The consulting services (“the Services”) are Supervision of Civil Works (Water Supply) Lot 2 which includes site supervision, quality, time and cost controls for civil works (rehabilitation and new) in Port Harcourt, Rivers State. The Construction work is divided into packages as follows:

2.1 No. of years of firm's experience (of lead firm if a JV): 10 years min.

3 EXPERIENCE OF CONSULTANT 3.1 Similar Water & Sanitation Engineering and Civil Works Supervision consultancies and experience in the past 10 years: Minimum of 3 successfully completed projects with a works budget of at least USD3.0 million, working with the FIDIC Red Book as well as the African Development Bank and/or the World Bank.

3.2 Experience in similar conditions(Sub Saharan Africa): 1 consultancy minimum 3.3 Average annual value of relevant consultancies: USD500,000 4 Statement of Capability 5 Availability of appropriate staff 5. The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers , January 2011, Revised July 2014 (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interest.

Borrowers are under no obligation to shortlist any consultancy firm which expresses interest.

6. Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications.

7. A Consultant will be selected in accordance with the Quality- and CostBased Selection (QCBS) method set out in the Consultant Guidelines.

8. Further information can be obtained at the address below during office hours from Monday to Friday, between 8:00 to 16:00 Hours (Nigeria time).

4. The Executing Agency is the Port-Harcourt Water Corporation and implementation period of the consultancy assignment is three (3) years.

The Port-Harcourt Water Corporation now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services.

Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The short listing criteria are: 1 ELIGIBILITY (application is rejected outright, if any of the following is not satisfied) 1.1 Firm eligibility as per WB guidelines pursuant to paragraph 1.23(d) of the Consultant Guidelines referred to in Paragraph 6 1.2 Provision of relevant documents in REOI a. b. c. d.

Company profile/Brochures Legal Status/eligibility-company registration/audit report (last 3 years: Jan. 2013- Dec. 15) Description of Similar assignments/experience under similar conditions Staff information

9. Expressions of interest must be delivered in a written form (one hard original, five hard copies and a CD) to the address below by 16:00 Hours (Nigeria time) on the 12th July, 2016, and mention “EOI for the Third Urban Water Sector Reform and Port Harcourt Water Supply and Sanitation Project: Consultancy Services for Supervision of Civil Works – Package 2”.

Attn:

The Managing Director, Mr. Kenneth Anga Port Harcourt Water Corporation No. 6, Water Works Road Port Harcourt, Nigeria Tel: +234 (0) 809 990 6217; E-mail: mdphwc@gmail.com, projects@portharcourtwater.com

NOTE: Those interested parties who presented Expressions of Interest in response to a previous request for the services described herein, published in This Day and the Guardian on May 12 and Tide on 17 May should take note that the original Expressions of Interest will be considered.

However, those Consultants who wish to add more detail to their submission in line with this advert are encouraged to present a new EOI with a covering letter stating that a previous EOI was presented but should be disregarded.

Tuesday June 28, 2016

TR

UT H

& RE A S O

N

Price: N250

MISSILE IYC to Buhari

“The sort of engagement the IYC expects from the Federal Government is a holistic dialogue with stakeholders in the region with a view to finding a lasting solution to the root causes of militancy and other agitations, rather than engagement with a view to giving palliatives to present agitators without addressing the issues responsible for the recurring agitations, as was done in the past” – The Ijaw Youth Council (IYC) calling on President Muhammadu Buhari to back his appeals with action in making the Niger Delta militants halt hostilities.

EMMANUELEGBOGAH GUEST COLUMNIST

Incorporated Oil JVs as Better Funding Alternatives

O

ne of the biggest challenges of Nigeria’s oil and gas industry has been that of funding. The international oil companies (IOCs) in the existing joint venture arrangements have consistently complained that government’s budgetary allocations for cash call purposes have often and chronically fallen short of requirements over the years, thus never permitting exploration and production developments to reach their real potential. This has negatively impacted capital expenditure requirements for increasing exploration and production levels from the existing joint venture fields, thus leaving the industry in a state of stagnation, thus preventing its full contribution to the national economy. Pointedly, this cash call challenge has prevented the national targets of attaining daily production and reserves of four million and 40 billion barrels respectively by 2010 from being realised.

The monthly report on the operations and finances of the Nigerian National Petroleum Corporation (NNPC) for December 2015 has shown that the corporation channelled a total of $4.13 billion into funding its cash call obligations in the various joint venture operations with the IOCs operating in the country. At the close of the year, the joint venture funding has gulped more than 87 per cent of the total proceeds the NNPC made from its export crude oil and gas trade. And as at January 2015, the NNPC was indebted to about $5 billion in cash calls to its joint venture partners. The corporation has also faced consistent challenges meeting its funding obligations.

The NNPC currently maintains up to six joint venture agreements with different oil companies, as follows: NNPC/SHELL/ ELF/AGIP with an equity ratio of 55:30:10:5; NNPC/MOBIL – 60:40; NNPC/AGIP/ PHILIPS – 60:20:20; NNPC/ELF – 60:40; NNPC/CHEVRONTEXACO – 60:40; and NNPC/PANOCEAN – 60:40.

Under the JV arrangements, all parties contribute to funding oil exploration and production operations in the proportion of their JV equity holdings and receive crude oil produced earnings in the same ratio.

The joint venture cash call obligations arose as a result of Nigeria’s participation in the operations of existing multinational oil companies in the country. Before the joint venture era, Nigeria was only involved in the enforcement of the laws and regulations on petroleum and the collection of taxes therefrom.

However, starting in 1973, Nigeria, like other Organisation of Petrol Exporting Countries (OPEC) member countries, decided to take an active part in the exploitation of its oil and gas resources. This was done by Nigeria buying into existing oil and gas concessions of seven IOCs. The percentage of participation in the operations of each concession stands at about 60 per cent (except in the case of Shell where the government equity is 55 per cent, as shown above).

The relationship was governed by a participation agreement as well as a Joint Operating Agreement (JOA). Due to these cash call shortfalls from government, the industry has resorted to rather expensive alternative funding approaches in financing

of all joint ventures to Incorporated Joint Ventures (IJVs), which can obtain loans and/ or go to the capital market for funding.

We must convert now to incorporated joint ventures like PDO in Oman or NLNG already in operation in Nigeria.

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

Ownership Structure

Minister of State for Petroleum, Ibe Kachikwu some green field projects. These alternative funding approaches are short term and have not provided acceptable stable solution to the funding problem and cash call crises. Rather, the cash call shortfalls have steadily risen from a few hundred million to the current $5 billion. Joint venture funding is therefore an immediate challenge for which a long-term solution must be sought.

Solution to the joint venture problem will usher in the environment that will permit the exploration and production of oil and gas in Nigeria to attain their real development potential.

Solution to Joint Venture Funding A long-term solution should involve conversion

Before the joint venture era, Nigeria was only involved in the enforcement of the laws and regulations on petroleum and the collection of taxes therefrom. However, starting in 1973, Nigeria, like other Organisation of Petroleum Exporting Countries (OPEC) member countries, decided to take an active part in the exploitation of its oil and gas resources

The ownership (shareholding) will be held by: • National Oil Company of Nigeria (NOCN) on behalf of FGN • International Oil Companies (IOCs) in the current joint ventures (JVs) For example, for the SPDC JV the ownership on conversion will be: NOCN - 55%, Shell (SPDC) - 30%, Total -15% and Agip - 5%.

The IJV will have a board composition that reflects the ownership (shareholding) structure, and will be operator of the oil and gas operations in the licences awarded to it (with a designated operator), will have the rights to source funds from the capital market, will sell and keep the funds derived from cost oil and cost gas will transfer all other hydrocarbon produced to its shareholders, and employees will be seconded from shareholding companies.

It should be noted that positions will be allocated upon agreement to ensure technical and commercial competence of IJV and proportional control by shareholders. Very importantly, position allocation should allow NOCN to acquire required competences, and direct participation operation by NOCN staff will aid National Content Development implementation.

IJV Cost Oil • IJV budget agreed annually by board • Board secures shareholder support of budget • Board and shareholders approve oil price assumptions for each budget year and approve the cost oil allocation to IJV • Cost oil assumptions reviewed and adjusted in June of budget year

Assurance on Cost Oil • It is in the interest of shareholders that cost be kept to a minimum • IOC staff will aim to minimise Nigeria specific costs, and • NOCN staff will press to minimise expatriate and affiliate company costs • This tension will assure cost oil minimisation which is in the interest of all

Operations • Regulation of operations will be by the regulatory body (PIC) There should be no requirement for

supervision by NAPIMS • Contracts will be subjected to the IJV tender board review and recommendation made to the IJV board.

• Normal reporting of business performance and risk management to the board • Monthly reconciliation of cost oil and oil lifting.

Benefits of IJV Structure • Liberates IJV from funding uncertainty • NOCN staff will be integrally involved in all aspects of the operations.

• Provides government with a better forecast of net revenue from oil and gas industry • Permits more efficient operation by removing the layer of supervision done by NAPIMS as well as reducing cost of operations • Will assure efficiency by tension created by staffing with shareholder employees • Provides NOCN with direct access: • To control of operations through seconded employees (and as major shareholder) • To IOC technology and industry best practices processes • To patents developed during operations as this will belong to IJV • Allows IJV to shop globally for best-in-class technical expertise • Improves transparency of operations.

• Access to all information, both technical and commercial.

Returns to Government The IJV scenario was modelled and presented in the split of the barrel (attachment) that shows government take to stand at 78 per cent, a significantly robust return when viewed from zero cash call position of the government. It is a significantly better return when compared with the Year 2000 Production Sharing Contract return of 55 per cent.

In light of the above and in consideration of the pertinent funding cash call issues, a long term and stable permanent solution to the cash call problem is the formation of IJV commercial entities that can source its own funding from the capital market. The precedence for the success of such IJVs can be found in PDO Oman, Egypt and NLNG Nigeria.

Such IJVs will also afford NOCN the opportunities for developing competences as well as direct involvement in the management and control of the operations for superior net revenue delivery to government.

In light of the forgoing, the federal government should approve for all existing JVs to be converted to IJVs as soon as practically possible, and to become operational no later than the 2018 budget cycle.

The realisation of the IJVs will bring to an end the perennial headache to government of funding its share of the oil and gas business through cash calls. It will establish more sound and profitable management of our economic resource.

• Dr. Egbogah, a former Special Adviser Petroleum to former President Olusegun Obasanjo, wrote this letter to President Muhammadu Buhari on February 18, 2016

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