Tuesday 23rd August 2016

Ibru Family Dispute, Other Reasons Force Sun Int’l out of Nigeria Davidson Iriekpen with agency report The dispute among members of the Ibru family over the ownership of Federal Palace Hotel in Victoria Island, Lagos, was one of the reasons cited by the South Africa’s hotel

and gaming group, Sun International, for pulling out of Nigeria.

Reuters reported yesterday that Sun International was the latest South African business to exit Nigeria because of weak economic growth and clashes with regulators and

shareholders.

In January, the Economic and Financial Crimes Commission (EFCC) launched a probe into Sun International’s initial investment in Tourist Company of Nigeria (TCN), which owns and operates the five-star Federal Palace Hotel

in Lagos.

TCN was founded by the scion of the Ibru clan, Chief Michael Ibru, and his younger brothers – Alex and Goodie Ibru.

Sun International then bought a 49-per-cent stake of the Nigerian Stock Exchange

(NSE)-listed TCN in 2006, becoming the largest single shareholder in the company.

In recent years, however, Sun has been drawn into a dispute between the family of the late Mr. Alex Ibru, who also founded The Guardian Newspapers, and his younger

brother, Goodie, who was the Chairman of Ikeja Hotels Plc – owner of Sheraton Hotels and Towers in Lagos and Abuja – before he was forced out by its shareholders two years ago.

Continued on page 8

MEND Accepts NDA's Ceasefire, Kicks against Clark's Involvement in Peace Negotiations...

Page 10

Tuesday 23 August, 2016 Vol 21. No 7788. Price: N250

www.thisdaylive.com TR

UT H

& RE A S O

N

CBN Directs Banks to Allocate 60% of FX Sales to Manufacturers ABCON asks central bank to outsource weekly dollar sales to BDCs Oversupply, Nigeria’s ceasefire trigger fall in oil prices

Ejiofor Alike and Obinna Chima with agency report Desirous of stimulating economic activities in the country, the Central Bank

of Nigeria (CBN) yesterday directed commercial banks and other authorised dealers in the foreign exchange (FX) market to ensure that they channel 60 per cent of total

FX purchases from all sources (interbank inclusive) to end users strictly for the purpose of importation of raw materials, plant and machinery.

The central bank said it

took the decision following its review of returns on the disbursement of FX and observed that a negligible proportion of FX sales were being channelled towards the

importation of raw materials for the manufacturing sector.

The CBN gave the directive in a circular signed by its acting Director, Trade and Exchange Department, Mr.

W.D. Gotring. The letter dated August 22, 2016, was posted on the central bank’s website.

It said: “Following the Continued on page 6

DSS Nabs Alleged Mastermind of Yobe Secondary School Killings Uncovers Boko Haram plot to bomb Kogi, Edo States Arrests other key terrorists, criminal gangs Terror sect kills 10, abducts 13 near Chibok

Senator Iroegbu in Abuja with agency report

The spiritual leader of Boko Haram and alleged mastermind of the 2013 terror attack on Government Secondary School, Mamudo in Yobe State has been captured, the Department of State Service (DSS) announced yesterday.

A statement signed by its spokesman, Tony Opuiyo, said Mudaisiru Jibrin, the spiritual leader of the Islamist

sect, was arrested in Kano on August 17, three years after he allegedly coordinated the killing of 42 people, mostly students and teachers, of the secondary school.

The operation was in furtherance of ongoing tactical and counter-terrorism operations to degrade the capabilities of criminal gangs and syndicates in their hideouts across the federation, Continued on page 6

Eight Burnt to Death in Gusau for Alleged Blasphemy... Page 6

UNENDING TEARS FOR THEIR DAUGHTERS

Co-convener of the Bring Back Our Girls (BBOG) group, Mrs. Oby Ezekwesili (right), consoling one of the mothers of the kidnapped Chibok schoolgirls, Mrs. Mary Abama, during the protest march by the group to the Presidential Villa… yesterday.

The march was truncated by security forces deployed by the government to stop the group from gaining access to the Three Arms Zone in Abuja, where the State House is located

2

TUESDAY AUGUST 23, 2016 T H I S D AY

T H I S D AY TUESDAY AUGUST 23, 2016

3

4

TUESDAY AUGUST 23, 2016 T H I S D AY

T H I S D AY TUESDAY AUGUST 23, 2016

5

6

TUESDAY, AUGUST 23, 2016 • T H I S D AY

PAGE SIX

Eight Burnt to Death in Gusau for Alleged Blasphemy Ibrahim Shuaibu in Gusau No fewer than eight persons have been burnt to death by a mob in Abdu Gusau Polytechnic, Talata Mafara in Zamfara State after a student of the college was alleged to have committed

blasphemy against Prophet Muhammad.

The incident occurred yesterday when a male student was alleged to have committed blasphemy during an exchange of words with his friend, a Muslim adherent, which caused

tension in the school.

After the altercation, the student was said to have fled to a house to hide, but the mob tracked him down and gained access to the house, following which they set the house ablaze along with seven other persons in the

building.

The police in Zamfara confirmed the incident and immediately imposed an indefinite curfew on the town in a bid to restore peace.

The Police spokesman in the state, Shehu Muhammad, a Deputy Superintendent of

Police (DSP), in a statement yesterday, sternly warned any person or group of persons found violating the curfew, adding that such persons would be arrested and prosecuted.

The police also called on religious leaders in the state

to counsel their adherents to embrace peace and eschew violence of any kind for peaceful coexistence to thrive.

The management of the polytechnic was said to have immediately closed down the institution to forestall further violence.

US oil rig count and increased Chinese exports.

While Iraq’s plan to increase exports of Kirkuk crude by 150,000 barrels per day this week from northern fields weighed on prices, the weekend’s announcement by the Niger Delta Avengers that it was ready for ceasefire and dialogue with the federal government also raised expectations of oversupply in the international market.

A prolonged ceasefire by the Avengers will potentially lead to the recovery of over 700,000 barrels per day that was shut in due to the attacks on oil facilities by the militant group, thus adding to the oversupply in the market.

Minister of State for Petroleum, Dr. Ibe Kachikwu, said recently that Nigeria would require an additional 900,000 barrels per day to achieve the 2016 production target.

A stronger dollar was also said to have fuelled the price drop, as the currency rose yesterday against other major currencies on increased expectations that the US Fed could raise interest rates this year.

A stronger dollar makes oil, which is priced in dollars, more expensive for buyers using other currencies, reducing demand.

With the expectations of oversupply weighing on the prices, the global benchmark, Brent crude yesterday was down $1.34, or 2.6 per cent, at $49.54 a barrel, after hitting

a two-month high of $51.22 on Friday.

US West Texas Intermediate (WTI) crude’s most active contract, October, fell $1.28, or 2.5 per cent to $48.32 a barrel, after hitting a six-week high of $49.60 on Friday.

Reuters reported that China’s July diesel and gasoline exports soared 181.8 per cent and 145.2 per cent respectively, from the same month last year, putting pressure on refined product margins.

Citing data from the oil service firm, Baker Hughes, the Wall Street Journal also reported that the number of rigs drilling for oil in the US has risen for eight straight weeks.

According to the data, US oil output has fallen for more than a year after companies sharply cut spending on new drilling, but higher oil prices in recent months have prompted some companies to put new rigs to work.

US producers added 32 new rigs in shale-oil regions in August, which could add 200,000 barrels a day of new supply, according to an analyst at SEB Markets.

Oil rallied with few stops over the past two weeks, going from a bear to bull market as it reversed a loss of over 20 per cent in early August on speculation that Saudi Arabia and the rest of the Organisation of Petroleum Exporting Countries (OPEC) will agree to a production freeze with non-OPEC members.

Benjamin Emomotemi and his accomplices, namely, Gabriel Ambrose, Godbless Taliboth Mattias, Blessing Sunday, Simeon Blessing Sunday, Edet Effiong Asanagasi and Rose Williams.

It said the suspects were part of a kidnap ring which masterminded the abduction of one Mr. Rufus AKV on May 31, 2016, and Senator Patrick Ani on July 6, 2016, in Cross River State.

DSS urged the public to remain vigilant to developments in their immediate environment, and support the security and law enforcement agencies with critical information on suspicious persons and groups for the sustenance of relative peace across the country.

But as the DSS rolled out its list of accomplishments in recent months, it did not stop Boko Haram from killing yet another 10 persons and abduction 13 others from a village near Chibok in Borno State, locals told APF yesterday.

Armed jihadists on motorcycles invaded Kubrrivu at dawn last Saturday, firing on the residents as they were sleeping and looted and burnt homes before fleeing into the bush with 13 women and children seized from the village.

“The Boko Haram attackers

rode on four motorcycles, three on each, and opened fire on the village as residents slept,” said Luka Damina, a resident of nearby Kautikeri village where Kubrrivu residents fled to for safety following the attack.

“They burnt down the whole village after looting food supplies and livestock and taking away women and children,” Damina said.

CBN DIRECTS BANKS TO ALLOCATE 60% OF FX SALES TO MANUFACTURERS review of returns on the disbursement of foreign exchange to end users, it has been observed that a negligible proportion of foreign exchange sales are being channelled towards the importation of raw materials for the manufacturing sector.

“Against this background and in order to address the observed imbalance, authorised dealers are hereby directed to henceforth dedicate 60 per cent of total foreign exchange purchases from all sources (interbank inclusive) to end users strictly for the purpose of importation of raw materials, plant and machinery.

“The balance of 40 per cent should be used to meet other trade obligations, visible and invisible transactions. For the avoidance of doubt, authorised dealers are to continue to publish weekly sales of FX to end users in the national newspapers and to render statutory returns on same to the CBN promptly. Please ensure compliance accordingly, until otherwise advised.”

The President of the Manufacturers Association of Nigeria (MAN), Frank Jacobs, recently voiced concerns that the FX scarcity and rising cost of funds had sent manufacturing output plunging to below 20 per cent.

But with the directive, analysts said yesterday that manufacturers would be able to get a substantial part of their FX requirements met.

One market observer lauded the CBN for the directive,

adding: “The CBN with this directive has prioritised the real sector so that industries can bring in their raw materials, machines and equipment without having to wait for the banks for weeks and months on end to smile their way.

“This means that the banks and authorised dealers will be required to seek out and prioritise their customers who need to bring in raw materials, plant and machinery for production and not the other way round.

“This is bound to have a positive impact on productivity in the manufacturing sector and hopefully will lead to a drop in the prices of goods that they produce.”

In a related development, the President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, has said most banks were yet to comply with the CBN’s directive that they sell $50,000 from diaspora remittances to bureau de change (BDC) operators on a weekly basis.

In a statement yesterday, the ABCON boss said only 10 per cent of BDCs from the Lagos market had accessed dollars from banks since the CBN gave the directive nearly three weeks ago.

The banks that have complied include First Bank of Nigeria Limited, Ecobank Nigeria Plc, Fidelity Bank Plc, United Bank for Africa Plc, Unity Bank Plc, Diamond Bank Plc, Zenith Bank Plc and Stanbic IBTC Bank.

Gwadabe further disclosed that BDCs in Port Harcourt, Kano, Abuja, Onitsha, Maiduguri, Benin and Enugu were yet to buy dollars from banks.

He said the BDCs had been selling dollars between N345 and N355 to dollar, far above the interbank rate, because of the shortfall in supply.

The banks, he added, are supposed to sell to the BDCs on the same day within the week, but failed to do so.

“Instead of staggering the payment, the banks should sell to the BDCs on the same week day, so that the impact will be felt in the market.

“We also want the CBN to license new International Money Transfer Operators (IMTOs) to deepen the market.

“Our members across the country have funded their accounts two weeks ago but the banks are not selling to them. The BDCs that met the CBN’s policy guidelines on the disbursement and were cleared by the banks have still not received a dime from the banks,” he said.

Gwadabe called on the CBN to outsource the dollar distribution role to an independent distributor since the banks have failed in their assigned role.

“I think the banks are compromising the policy and CBN’s directive on the matter.

And like I said earlier, since the banks are not co-operating, I expect the CBN to take that role from them and assign it to a reputable independent

distributor,” he said.

The CBN had directed authorised dealers that are agents of approved IMTOs to sell foreign currency accruing from inward money remittances to licensed BDCs. The spot rate of the naira appreciated on the interbank FX market to N308.73 to the dollar yesterday, as against the N316.55 at which it closed last Friday.

The gains made by the naira on the interbank market yesterday were attributed to dollar sales by the central bank to some banks. Traders said the central bank selectively sold dollars to commercial lenders just before the market closed.

The central bank remains the major supplier of dollar in the market and has been selling the greenback almost daily to boost liquidity as the naira continues to search for an equilibrium price.

The CBN ditched its 16-month-old peg on the naira last June and introduced a flexible exchange rate regime to allow the currency to trade freely on the interbank market.

However, on the parallel market, the naira closed at N396 to the dollar yesterday, slightly stronger than the N396.55 to the dollar as of Friday last week.

Meanwhile, Nigeria’s search for an end to its dollar shortage woes dimmed yesterday, when oil prices fell more than two per cent from last week’s high, following expectations of more crude shipments from Iraq and Nigeria, coupled with rising

DSS NABS ALLEGED MASTERMIND OF YOBE SECONDARY SCHOOL KILLINGS the DSS said.

The DSS said Jibrin was arrested in the Yankaba neighbourhood in Kano, where he was operating as a spiritual leader for a new Boko Haram sleeper cell.

“Similarly, on 8th July, 2016, at Kinkinau area in Unguwar Mu’azu of Kaduna metropolis, the Service arrested one Mukhtar Tijani, a notorious Boko Haram fighter and three of his accomplices namely, Isiaku Salihu, Abdullahi Isah and Hindu Isah,” the DSS said.

The four suspects were apprehended while perfecting arrangements for major coordinated attacks on selected targets and locations in Kaduna State, the security agency added.

It also disclosed that on 12th August 2016, at Auchi in Edo State, three members of the Ansaru terrorist group hibernating in Kogi State were apprehende.

“Usman Abdullahi, Abdulmumuni Sadio and Ahmad Salihu were arrested while making arrangements to launch attacks on some selected targets in Edo and Kogi States, before escaping to join ISIS in Libya,” it said.

The DSS also announced the apprehension of one Aikhoje Moses, a suspected criminal

who allegedly threatened violence against some foreign diplomats and missions in the country.

DSS said: “Following threat messages against some members of the diplomatic corps in Abuja and Lagos, the DSS responded and subsequently apprehended one Aikhoje Moses on August 19, 2016, at Azagha by-pass off the Benin–Asaba expressway in Edo State.”

It revealed that before his arrest, Moses had threatened the diplomatic community in Nigeria, particularly the consular-generals of Switzerland and Denmark and their embassies in Nigeria, warning them to leave the country.

In addition, DSS said it apprehended cattle rustlers in Zamfara State, stating: “Following recurring attacks by cattle rustlers in Zamfara State, the Service conducted a series of operations in collaboration with the military to degrade the criminal network of one ‘Buhari General’ in the state.

“Sequel to these operations, the DSS arrested one Abdullahi Haruna, aka Douglas, a bread seller, on August 13, 2016, at Hayin Buba area in Gusau Local Council Area of Zamfara State.

“Haruna was intercepted

while using the cover of his petty business to monitor security bases and the movement of security agents in the state in a bid to facilitate counter-attacks on security personnel deployed to the state.

“Also, on August 12, 2016, at Aliero town in Aliero Local Government Area of Kebbi State, one Hussaini Alhaji Sule, aka Yellow, was apprehended by the DSS. “His arrest was facilitated by an earlier operation of July 29, 2016, when one Hafizu Sani, a spy and criminal associate of ‘Buhari General’, was apprehended by the DSS. “Prior to his arrest, Sani was also spying on the movements of security agents in Zamfara State. Sani, in concert with other elements, had been terrorising local communities in Kaduna, Katsina and Zamfara States respectively, engaging in cattle rustling and kidnap activities.”

Also, following the spate of gruesome murders and kidnappings in Benue State, DSS said that on August 8, 2016, it arrested one Terfa Jirgba and two of his accomplices, namely Terzungee Kwaghaondo and Mathias Aende, at Badagry Street, off Esther Aka road in Makurdi, Benue State.

“Jirgba is an active ally and gang member of Terwase

Agwaza, aka Ghana, a notorious kidnapper who runs a kidnapping and criminal network in the state.

“In a follow-up operation, one Terungwa Abur was trailed to Port Harcourt in Rivers State.

He was eventually arrested on August 16, 2016. Abur is the second-in-command to Agwaza and a key member of the kidnapping gang of Agwaza which operates from Benue State.

“He acts as a courier for the gang and was the negotiator of the N4 million ransom paid to the gang for the release of an Indian staff of Dangote Cement Company, Yander-Gboko, who were kidnapped on July 29, 2016, in Markudi.

“He also participated in the killing of one Ortin in Gboko Township on August 1, 2016.”

DSS stressed that the arrests of criminal masterminds in Benue and other adjourning states will continue until these criminal gangs are routed and made to face justice.

The security agency also stated that the DSS, in its move to address the activities of various criminal syndicates that have in recent months terrorised residents of Calabar and some parts of Akwa Ibom State, had on August 15, 2016, in Oron council area, apprehended one

Continued on page 8

TOP GAINERS NGN NGN TRANSCORP 0.08 1.13 UBA 0.24 4.60 ETERNA 0.13 2.83 AIICO 0.03 0.66 ACCESS 0.26 5.86 TOP LOSERS NGN NGN SEVEN-UP 5.28 109.17 LIVESTOCK 0.04 0.89 DANGFLOUR 0.15 4.00 FCMB 0.04 1.23 ETI 0.31 11.19 HPE Nestle Nig Plc N835.00 Volume: 216.174 million shares Value: N2.825 billion Deals: 3,316 As at yesterday 22/08/16 See details on Page 39

% 7.6 5.5 4.8 4.7 4.6 % 4.6 4.3 3.6 3.1 2.7

T H I S D AY TUESDAY AUGUST 23, 2016

7

8

T H I S D AY • TUESDAY, AUGUST 23, 2016

NEWS

BBOG Asks Buhari to Negotiate with Boko Haram for Release of Chibok Girls Security operatives bar group from Aso Rock, Chibok community expresses regret for voting for president

Tobi Soniyi in Abuja The Bring Back Our Girls (BBOG) group has called on President Muhammadu Buhari to hasten the trial of those indicted by the arms procurement probe panel, even as it urged him to negotiate with Boko Haram terrorists for the release of the kidnapped Chibok secondary schoolgirls.

The group, which spoke in Abuja yesterday while embarking on a protest to press the president to double his efforts in rescuing the girls, also asked the president to set up a “special desk” to fast track the trial of the suspects in the diversion of arms procurement funds.

BBOG spokesperson, Aisha Yesufu, while addressing protesters at the main access road to the Three Arms Zone in Abuja called on the president to direct the Attorney General of the Federation (AGF) and anti-graft agencies to set up the desk.

She said the desk would among other things provide regular updates on the trials of those indicted in the arms probe so that Nigerians would understand the progress made so far.

She said: “There are two other issues of deep concern to our movement. First, what we consider a slow, ineffectual response to the tragedy in the internally displaced persons’ camps in the North-east and the prosecution of corrupt cases associated with the counterinsurgency war of government.

“In the light of the revelation of diversion of funds, which should have early in the crises helped to avert this disaster, we call for a deliberate hastening of the trials and conviction of guilty persons within the legal provisions. This is the only way we can bring justice to our fellow citizens whose human and materials loses cannot even begin to be estimated.

“We reject any suspension of the trials without reaching a logical conclusion.”

The group also called on the president, to as a matter of urgency, take decisions for the immediate rescue of the remaining 218 girls, using the following options: military operations, negotiations with the terrorists, and a combination of both.

“With all the information available, the president must pursue the lowest risk option of the three,” the group said.

It called for an address by the president on the rescue plan for the Chibok girls, not later than today.

The BBOG also demanded that government sets up a Chibok rescue operation monitoring team made up of representatives of the federal government, parents of the Chibok girls, KADA community where Chibok village is located and#BringBackOurGirls group.

It said it was necessary for the government to immediately preside over a national emergency on the North-east conference to articulate a cohesive response plan to the humanitarian crisis and designate a special envoy responsible for the inter-agency collaborative work required.

The group also called on government to mobilise the private and public sectors, as well as the international community towards addressing the humanitarian crisis caused by the Boko Haram menace in the North-east.

“It is unacceptable that continuous calls for the humanitarian community and relief organisations for a deliberate and urgent response to the catastrophic humanitarian crisis in the North-east have so far met utter silence.

“Mr. President, no leader in the 21st century should be silent in the face of imminent death for what has been estimated at about 500,000 of our citizens,

A Bring Bank Our Girls protester in Abuja… yesterday especially with the images and abundance of evidence of this possibility,” the group said.

Esther Yakubu, the mother of Maida Yakubu, the young lady who was recently seen speaking in the proof-of-life video released by Boko Haram, said the family of the abducted girls were tired of seeing videos of their daughters in the hands of terrorists.

She called for an end to what she described as the denial of their fundamental rights by government and the media.

However, security operatives drawn from the Nigeria Police Force, the Nigeria Security and Civil Defence Corps (NSCDC) and the Department of State Services (DSS) barred the group from gaining access to the Three Arms Zone where the Presidential Villa is located.

As part of the group’s 14-day

campaign to pressurise the government to intensify efforts to rescue the girls taken away from their school on April 14, 2014, the group had planned a protest to the Presidential Villa.

However, a massive blockade of the road to the Three Arms zone ensured that the protesters could not get to the villa.

The protest was jointly led by Oby Ezekwesili and Yesufu while the police detachment was led by a chief superintendent of police (CPS), Mr. Chuks Obasi.

Ezekwesili and Obasi got involved in a shouting match when the police officer insisted that the protesters would not be allowed to cross the human barricade created by the security operatives.

In the course of the confrontation, Ezekwesili told the security operatives that the

group was on a peaceful protest.

She said: “For many years, we have been advocating, we have never engaged in anarchy.”

She also warned the leader of the police team to stop pointing his fingers at her while addressing her.

Replying, Obasi said: “Well, I have my mandate and my mandate is to ensure that the protest match does not assume a violent dimension.”

Some members of the group who spoke expressed dissatisfaction with the way the Buhari-led administration was handling the kidnapped Chibok girls’ case.

A member of the group who is also from Chibok community, Hoses Tsambido, said the BBOG group had voted for the All Progressives Congress (APC) in 2015, as against its previous votes for the Peoples Democratic

Party (PDP) in 2011.

He said: “We were promised that the president would visit Sambisa after becoming president. We were also told that within two weeks our girls would be rescued.

“But over one year now, there is no tangible statement about our girls. The presidency has stated, instead, that it is confused.

“They told us that our girls seen in the latest video was merely an arrangement. No one has spoken to the family of any of the Chibok girls since the last video was released by the terrorists. We regret our votes.

We regret it.”

The BBOG group said the Buhari administration no longer had any valid excuse for not rescuing the girls.

“No more excuses,” they shouted.

Nigerian troops recaptured swathes of territory from the Islamists in a series of military successes against them.

Boko Haram, which seeks to impose strict Islamic law

in northern Nigeria, has been blamed for some 20,000 deaths and displacing more than 2.6 million people since 2009.

The audacious mass kidnapping of 276 schoolgirls

from Chibok in April 2014 provoked global outrage and brought unprecedented attention to Boko Haram’s brutal tactics.

A total of 218 girls are still missing.

clothing retailer Woolworths and Tiger Brands, which sold its loss-making Nigerian arm to Dangote Industries.

Nigeria is suffering its worst economic crisis in decades as a slump in oil revenues hammers public finances and the naira.

The central bank governor has said recession is likely.

Analysts said Sun International’s dispute with fellow investors was at least as important in its decision to leave.

“They are in a way stuck in a problematic arrangement on the property and it’s been very difficult for them to create value there. It certainly makes sense for them to reduce exposure to Nigeria,” said Avior Capital Markets analyst De Wet Schutte.

“Nigeria is a difficult place to build a business.”

CEO Graeme Stephens said the exit could take a year or two, and the company was no longer committed to expanding in Africa.

“We’ve been strategically exiting Africa for a couple of years and what was left was Nigeria. We’re not looking anywhere else in Africa,” Stephens told Reuters, adding that the company would focus on growing its Latin America business.

In June, Sun said it was disposing its remaining minority interests in Zambia, Botswana, Namibia, Lesotho and Swaziland to Minor International Public Company.

Shares in Sun International

were down 0.47 per cent by 1139 GMT on the Johannesburg Stock Exchange (JSE).

Reporting its results, the company said poor economic conditions in South Africa resulted in revenue growth at casinos of only 0.8 per cent to 7 billion rand ($515 million).

“In South Africa, the economic environment remains a serious concern. We do not anticipate any meaningful growth in gaming revenue until there is a recovery in the economy and renewed consumer confidence,” Stephens said.

The South African Reserve Bank expects the economy to flat-line this year, due to a drought and falling commodity prices.

DSS NABS ALLEGED MASTERMIND OF YOBE SECONDARY SCHOOL KILLINGS Ayuba Alamson, a community elder in Chibok, some 20 kilometres away, confirmed the attack, saying 13 people were abducted in the raid.

“After killing 10 people and burning the entire village, the gunmen made away with 13 people, including seven women, five boys and a girl,” Alamson said.

In 2014, Kubrrivu was burnt down in a deadly Boko Haram raid which forced residents to flee.

A year later, they returned and rebuilt their homes after

IBRU FAMILY DISPUTE, OTHER REASONS FORCE SUN INT’L OUT OF NIGERIA In a lawsuit filed in 2012

by Alex Ibru’s widow, Mrs. Maiden Ibru, who is currently the Publisher of The Guardian, she sought for the winding up of the Federal Palace Hotel.

Mrs. Ibru, who filed the petition on behalf of Omamo Investment Corporation, wanted the hotel wound up over a N2 billion debt.

According to the petition, she stated that TCN borrowed various sums: US$7.1 million, N610 million, N381 million and N19 million, between 2003 and 2004 which had not been paid back despite repeated demands for repayment.

She also alleged that the company was insolvent, had failed beyond resuscitation, lacked sufficient assets to

meet its liabilities, and did not have the capacity to meet the conditions for which it was incorporated and had suffered a total erosion of capital.

Based on the averments, Omamo prayed the court to appoint a provisional liquidator in the person of the President of the Institute of Chartered Accountants of Nigeria (ICAN) to supervise the winding up of the company.

The lawsuit continued in the courts until Goodie Ibru’s forced ouster by the shareholders of Ikeja Hotels.

His removal, which was later upheld by a Federal High Court in Lagos, was also spearheaded

by Mrs. Maiden Ibru.

Sun International, which also reported yesterday a 20-per-cent

fall in diluted adjusted headline earnings per share (AHEPS) to 628 cents for the year to June, said the Federal Palace Hotel had been hit by slow economic growth, low oil prices, the threat from militant group, Boko Haram and a weakening naira.

“The board has decided to exit Nigeria and steps will be taken to achieve this in a manner that does not erode further value,” the company said in a statement yesterday.

“Continued setbacks in Nigeria as well as the ongoing shareholder dispute have frustrated all attempts to develop and improve the property,” it added.

Sun International’s decision to exit Nigeria followed food and

T H I S D AY TUESDAY AUGUST 23, 2016

9

10

TUESDAY AUGUST 23, 2016 • T H I S D AY

NEWS

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

MEND Accepts NDA’s Ceasefire, Kicks against Clark’s Involvement in Peace Negotiations More militants quit N’Delta creeks, list conditions for peace New group: We are not part of cessation of hostilities

Emmanuel Addeh in Yenagoa and Sylvester Idowu in Warri The Movement for the Emancipation of the Niger Delta (MEND) yesterday said though it welcomed the recent decision by the Niger Delta Avengers (NDA) to ceasefire and dialogue with the federal government, it would effectively pull out of the peace process if elder statesman, Chief Edwin Clark, agrees to lead negotiations.

The group said instead, its Aaron Team 2 Dialogue team led by exminister, Mr. Odein Ajumogobia, should spearhead the talks with the government, and advised Clark to “respect” himself.

Describing the NDA as criminals, MEND in a statement by its spokesman, Jomo Gbomo, stated that accepting the offer by the NDA would give the impression that the Niger Delta is polarised.

According to the group, if Clark bows to pressure to accept to lead the Niger Delta negotiating team, it would confirm insinuations that he (Clark), has always been the mastermind behind the NDA. “The NDA’s decision to name a separate dialogue team headed

by Clark was hasty, premature and capable of sending wrong signals to the federal government that the Niger Delta region is polarised and therefore incapable of speaking with a single voice under a single umbrella body.

“We reasonably believe that the NDA, Clark, Governor Ifeanyi Okowa and others who attended the August 19, 2016, Niger, Delta Coastal States’ stakeholders’ meeting jointly convened by Clark and Okowa, knew well that the MEND AaronTeam 2 Dialogue, Peace and Development Initiative headed by Ajumogobia was inaugurated by MEND on June 12, 2016.

“We also reasonably believe that these earlier-mentioned persons and stakeholders are aware that the federal government has been

engaged in preliminary talks with MEND with a view to resolving the current Niger Delta crisis, as duly confirmed by no less a person than President Muhammadu Buhari.

“As a matter of fact, MEND has so far been able to secure some very critical concessions from the federal government in the ongoing talks.

“The final phase of the talks shall, however, be concluded by the MEND Aaron Team led by Ajumogobia.

“In the light of these developments, we want to believe that Clark shall respect himself as an elder statesman by refraining from accepting to lead a so-called “NDA delegation” to non-existent talks with the federal government,” the ex-militants group stated.

It added: “If Clark accepted such an appointment, then Nigerians and the international community shall be left with no other option than to believe that truly, he was the mastermind and evil genius of the spate of NDA attacks on oil installations which have greatly contributed to destabilise the current administration, blighted Nigeria’s oil production capacity and thereby, caused economic hardship on innocent Nigerians.

“It is imperative to emphasise that the Federal Government of Nigeria must not set a precedent of dialogue with criminals. If, on the contrary, the federal government chooses to hold a separate dialogue with the NDA team led by Clark, MEND shall immediately disband the AaronTeam 2 and pull out of the ongoing talks.

“We insist that the NDA, their patrons, sponsors, supporters and sympathizers are criminals and haters of the current administration (as revealed by the Reformed Niger Delta Avengers - RNDA) who must publicly renounce all forms of hostility against Nigeria. Once this is done, MEND shall embrace the NDA and their co-travellers.

“At almost 90 years of age, we believe that Clark cannot reasonably stand the rigours associated with

Reporters Barred from Covering Kerry’sVisit Tobi Soniyi in Abuja Ahead of the visit by the United States of America’s Secretary of State, Mr. John Kerry, the presidency has said journalists will not be allowed to cover the visit.

Only photographers and videographers would be allowed to cover Kerry’s arrival as well as the bilateral meeting between him and his host, President Muhammadu Buhari.

According to a media advisory issued yesterday, Buhari would receive Kerry at the State House at 3p.m. today.

Kerry would also meet with some governors from the Northeast region.

“The Secretary of State will not grant any press interview

after the meeting,” the advisory read.

A statement issued by the US Department of State said Kerry would travel to Sokoto, and Abuja on August 23 and 24.

The statement noted that: “He will meet with President Buhari to discuss counterterrorism efforts, the Nigerian economy, the fight against corruption and human rights issues. In Sokoto, he will deliver a speech on the importance of resilient communities and religious tolerance in countering violent extremism. In Abuja, the Secretary will meet with a group of adolescent girls working to change community perceptions that devalue the role of girls in the society. He will also meet with northern governors and religious leaders.”

COURTESY VISIT TO THE VILLA

L-R: Regional Director, Africa, Duke of Edinburgh’s International Award, Edwin K. Kiman; Sectary General, Duke of Edinburgh’s International Award, John May; Vice President Prof. Yemi Osinbajo (SAN); National Director, Duke of Edinburgh’s International Award, Toyin Edu; and Chairman Board of Trustee, Olawale Edun, during a courtesy visit at the Presidential Villa...yesterday dialogue and negotiation of the Niger Delta question.

“Clark must not head every civil society initiative in the Niger Delta.

Following his appointment by NDA (assuming he decided to accept it), we expected Clark to lead his team to pledge allegiance to the MEND Aaron Team which is patiently waiting on the sidelines to meet President Buhari in the next couple of days to chart a course for the beleaguered region” Meanwhile, militants in the region continued to embrace peace yesterday, following the lead by the Niger Delta Avengers (NDA), which for over seven months held the nation hostage with the destruction of oil and gas infrastructure in the oil-rich region.

Aside the NDA which in deference to some leaders of the region led by Clark, accepted a ceasefire last Saturday, the Reformed Egbesu Fraternities comprising Egbesu Boys of the Niger Delta, Egbesu Red Water Lions and Egbesu Mightier Fraternity have also announced a 60-day armistice.

Joining the horde yesterday, another group of fighters, the Iduwini Volunteer Force (IVF), which operates from Bayelsa State, noted that it was quitting the creeks temporarily to give the federal government a chance to meet the demands made by the militants.

“The leadership of the Iduwini Volunteer Force (IVF), rose from a crucial stakeholders meeting with all its unit commanders and zonal commanders to review the security situation in the Niger Delta vis-a-vis the attacks on oil and gas installations in the oil-rich region of the Niger Delta.

“The meeting which started early on August 21, 2016, lasted till the early hours of August 22, 2016 in one of our creek locations.

“And we deliberated extensively

on the current security situation in the Niger Delta, the efforts of notable leaders to seek peace and dialogue in resolving the crisis,” the group led by Commander Johnson Biboye noted.

While commending the role played by the elders in the region, the group warned that any attempt to politicise or derail the peace process would be met with stiff resistance.

The group added that it also discussed very elaborately, the federal government’s desire to ensure that peace prevails in the Niger Delta region and have decided to key into the process.

While lamenting the neglect of oil-producing communities in the Niger Delta region, the group said the Iduwini Kingdom of Ekeremor Local Government Area of Bayelsa State, remains one of the greatest oil/gas bearing kingdoms in Nigeria.

However, sign that there is no end in sight to the resolution of the Niger Delta crisis emerged yesterday when a new militant group, the Niger Delta Greenland Justice Mandate (NDGJM), said it was not part of the cessation of hostilities as announced by the NDA. The group in a statement signed by its spokesman, Aldo Agbalaja, said it would continue to carry out more deadly attacks until the right thing is done.

It berated Clark, noting that he was part of the rot plaguing the Niger Delta region, as they described last Friday’s stakeholders meeting organised by him as a charade.

NDGJM, which is also an emerging destructive group, said it was still carrying on with its campaign against Nigeria’s oil and gas interest until the federal government does the right thing for the people of the region.

On last Friday’s stakeholders meeting convened by Clark, the militant group maintained that he never had the mandate to hold the meeting or speak on behalf of the region but only for his ethnic group.

“He does not have the mandate to convene a meeting or speak on behalf of the Niger Delta, the Niger Delta Greenland Justice Mandate is not in support of that so-called stakeholders’ meeting, which by the way was populated by the same gang of breast-pocket politicians who in the six to seven years of Goodluck Jonathan’s presidency, ruled with him, looted the nation and raped the Niger Delta.

“We see that meeting in Warri last Friday as an attempt by this same gang led by Clark, to creep back into national relevance and continue with the looting spree that supposedly ended with Jonathan’s regime,” it added.

The militant group further said: “We are neither moved by the stage-playing in name of the call for ceasefire by the Warri gang last Friday nor by the acting up that followed in the supposed ceasefire declaration by the NDA. “As a matter of fact, the people who called for truce were the same set of people who put the Avengers together in the first place, therefore the hypocrisy of these people is becoming glaring to the world by the day.

“We also know that the charade called ceasefire is in the bid to collect more money from both the federal government and oil companies to be shared between the founders and the boys of the Avengers.

“We hereby serve a notice that the so-called truce called by Clark and others is not recognised by NDGJM as we do not see Clark as the leader of all Niger Delta, but of only the Ijaw nation.”

It maintained that it would still

continue its attack on Nigeria’s oil and gas facilities until the federal government does the right thing for the people of the region, insisting that only a credibly convened meeting will make it stop hostilities against oil facilities.

“We are serving a notice that NDGJM is still carrying on with this campaign against Nigeria’s oil and gas interest until the federal government does right by our people.

“Like we said in our previous message, only a credibly convened conference of Niger Delta stakeholders, made up of real, grassroots representative from the six core Niger Delta states, not breast-pocket rogues, who are merely looking for more avenues to sleaze and looting, can dialogue on behalf of the region and get a real deal out for our people, and those are the kind of representatives that the Niger Delta people can trust with their mandate.

“Therefore, President Muhammadu Buhari should take note, stop wasting your time with these people, they are not serving the interest of the Niger Delta and they cannot stop the current campaign. They can only withdraw their boys, the Avengers, from action, but not the genuine campaigners for a better Niger Delta,” it added.

NDGJM said it was aware of a group (NDDCG), led by the Amanyanabo of Twon Brass, Alfred Diete-Spiff, which has the involvement of some international agencies, and advised the federal government to build on that group for peace to reign and not that of the Clark group.

“Enough of these buccaneers in the name of leaders of the region, our people from both the upland and the creeks deserve a better deal, not the Avengers kind of deal.

TUESDAY AUGUST 23, 2016 • T H I S D AY

11

NEWS

Senators Reject Buhari’s Emergency Powers Bill, Say It’ll Turn Him into a Tyrant Omololu Ogunmade in Abuja The move by President Muhammadu Buhari to secure emergency powers aimed at addressing the nation’s economic crisis may not see the light of the day, as senators yesterday rejected the proposed bill, saying Buhari was seeking to transform himself into a tyrant and would foist a dictatorship on the nation.

The bill entitled, “Emergency Economy Stabilisation Bill 2016”, will be sent to the National Assembly by the president upon resumption from its summer vacation and after the Eid el Kabir holidays.

However, given the reaction of some senators to the proposed emergency powers being sought

by Buhari through the bill, the legislation may be thrown out.

Several senators, who spoke to

CAS: 300 Boko Haram Killed in Air Raids Micheal Olubody in Maiduguri The Chief of Air Staff (CAS), Air Marshal Sadiq Abubakar, yesterday disclosed that about 300 members of the Boko Haram sect were killed in an air operation undertaken in last few days.

Abubakar made this disclosure while addressing men of the Nigerian Air Force involved in anti-insurgency operations in the North-east in Maiduguri when together with the Borno State Governor, Alhaji Kashim Shettima, they inaugurated an emergency hospital and borehole for internally displaced persons in Bama.

He said the service now has the capacity to attack at any time, both day and night, and that the insurgents have no more hiding place. Addressing the troops, Abubakar said: “I cannot but say thank you, I am very happy to note that since August 16 to now, you undertook extensive air operation and on account of that we are able to deal with this terrorists trying to make life difficult for our people.”

He added that: “I want to say from the briefing that I received from the air component commander that I am satisfied with what you have done. I am satisfy with the outcome of the air operation.

“Of particular note is the operation you conducted on the 19th of this month, it was a night operation and we were very lucky to deal with these guys (insurgents) who had en-massed somewhere and were planning to go out to attack a target.

We are very happy to note that about 300 of them will not be available to commit any evil again.” He said the only way other insurgents will not suffer the same fate is for them to come out and surrender.

Sadiq said: “We have for once deal with them and we want to urge others in their own interest to surrender their rifles and their weapons and come out to hand

over themselves and face justice that is the only thing that will safe them. I want to urge you guys to continue this intensive air operations and continue to make it impossible for them to come out to kill innocent Nigerians.”

He told the officers: “We are very happy with the progress you have recorded and I want to assure you also that the Air Force will continue to provide for your needs and we will try as much as possible to build your capacity in the area of training, we will try to address aircraft maintenance challenges so that whenever you fly, you fly with the best of airplanes.

“We also want to assure you that we will provide for your welfare needs especially in the area of accommodation, medical needs and then the needs of your family that are there in different barracks across the country.”

He assured them: “So much is still going to be committed to see that you have the best, to whom much is given much is expected, I am very happy with the progress you have made, the fact that you were able to conduct this night operation has sent a very clear signal to Boko Haram that if they want to continue to live they must come out in their own interest, drop their riffles and face justice.

“If they do not do that, we make sure we get them wherever they hide, with the kind of capacity we have now they have no hiding place.

I want to thank you once more and want to tell you to maintain the tempo of this air operation, we will provide you with all that is needed to conduct your operation.”

The Chief of Air Staff requested the unit in Maiduguri to continue to support the IDP camps both in Maiduguri and in Bama.

He said “there is no way you will succeed in fighting counterinsurgency without the support of the community where you are fighting and this is why we introduce this strategy of winning hearts and minds.”

CCT Fixes New Dates for Saraki, Orubebe’s Trials Tobi Soniyi in Abuja

The Code of Conduct Tribunal has fixed September 21 for judgment in the case of nondeclaration of asset against former Minister for Niger Delta Affairs, Mr. Godswill Orubebe.

A statement by the CCT’s Head of Press and Public Relations, Mr. Ibraheem AlHassan, said the tribunal has also announced a date, October 5, for ruling on an application filed by the Senate President,

Dr. Bukola Saraki, who is also standing trial for alleged nondeclaration of assets.

Saraki, in the application is asking the CCT Chairman, Danladi Umar, to excuse himself from the trial on the ground of alleged bias.

While the tribunal had concluded hearing in the case against Orubebe, the trial of the senate president had been marred by various adjournments and the filing of many applications.

THISDAY yesterday, vehemently kicked against it, adding that it was “dead on arrival”.

According to the senators, who did not want to be named, some of the provisions in the bill were unnecessary, describing it as nothing more than a subtle way of avoiding counterpart funding by the Buhari administration.

According to them, if the bill is passed as proposed, the president will gradually transform himself into a dictator and draw Nigeria back to the path of military rule, which it exited 17 years ago.

They said without the so-called emergency powers at his disposal, Buhari has continued to trample on the powers of the legislature, explaining that if given further powers, he would more or less reduce the National Assembly

to a rubber stamp like the kinds of legislature that exist in China and Russia.

Accordingly, the senators who spoke to THISDAY vowed to kill the bill before Buhari kills the entire legislature and by extension, the nation’s traumatised democracy.

An unnamed government official had disclosed to reporters at the weekend that Buhari would seek emergency powers from the National Assembly to push his planned stimulus for the economy.

The objectives of the bill will include shoring up the value of the naira, job creation, boosting foreign exchange reserves, reviving the manufacturing sector, and improving power supply.

The quest for emergency powers by the executive is the initiative of the economic team headed

by Vice-President Yemi Osinbajo, which has been saddled with the responsibility of reviewing various policies in the country and their effects on the economy.

The economic team examined the state of the nation and concluded that there was urgent need to take some drastic decisions that the nation’s extant laws do not provide for.

This assumption by the team was predicated on the belief that the recession might last longer than expected and Nigerians would not get the desired respite, which is the goal of this government.

As provided in the bill, the president is seeking unfettered powers to set aside some extant laws and simultaneously be empowered to come up with an economic recovery initiative

within the next one year.

Among others, the bill also seeks to empower Buhari to abridge the procurement process with a view to guaranteeing stimulus spending on critical sectors of the economy; make orders to favour local contractors/suppliers in contract awards; abridge the process of sale or lease of government assets to generate revenue; and allow virement of budgetary allocations to projects that are urgent, without a recourse to the National Assembly.

It also seeks to amend laws such as the Universal Basic Education Commission (UBEC) Act, so that states that cannot access their cash trapped in the commission’s accounts as a result of their inability to meet the counterpart funding can do so.

HERE’S THE WINNER

L-R:Chairman,PeoplesDemocraticParty(PDP)GubernatorialPrimaryElectionPanelforOndoStateandBayelsaStateGovernor,SeriakeDickson;winner oftheelection,Mr.EyitayoJegede(SAN);and OndoStateGovernor,Dr.OlusegunMimiko,duringPDPgubernatorialprimaryelectioninAkure....yesterday

UN to Probe Alleged Diversion of Funds for North-east Humanitarian Assistance Paul Obi and Alex Enumah in Abuja Following several complains against the diversion of funds and resources such as food items for Internally Displayed Persons (IDPs) caught up by the Boko Haram insurgency, the United Nations (UN) yesterday said it will investigate the matter where there were cases of diversion of funds.

The UN assured that it would probe alleged cases of diversion of funds meant to provide humanitarian assistance to victims of terrorism and IDPs in the North-east of Nigeria currently being ravaged by hunger and malnutrition occasioned by the Boko Haram insurgency.

There have allegaations of increasing cases of diversion of food stuffs and other resources, with government and UN agencies unable to stop the menace.

United Nations Assistant Secretary-General and Regional Humanitarian Coordinator for the Sahel, Mr. Toby Lanzer, while

addressing journalists in Abuja on his recent visit to some communities in Borno State assured of the UN’s readiness to look into the matter and find possible solutions.

Responding to the question of alleged diversion of funds in the North-east, Lanzer said such allegation, “is not representing what we are. If we have details of cases of this diversion we would definitely look into it.”

While commending both the federal government and the Borno State government on their efforts towards “ameliorating the plights of victims of insurgency in the country despite the drop in oil production which he says is down by 60 per cent; the envoy called for more collaborated assistance from other international agencies and governments, adding that the rebuilding of the region is not something that can be tackled be a single government.

“There is no question that much more needs to be done in Bama, and indeed in other key towns of Adamawa, Borno and Yobe States,

and more broadly across the entire Lake Chad Basin.

“The scale of the crisis in the region is staggering: nine million people need emergency relief; 4.5 million people are severely food insecure; 2.5 million people have been forced from homes,” he said.

Lanzer contended that out of the $279 million required to address the humanitarian crisis, only about $182 million has been released, making a paltry 36 per cent of the total funding needed to tackle the challenges.

He remarked that there has been considerable improvement in some areas, particularly Bama, when compared to his earlier visit in April this year.

According to him, Bama is now, not just under the control of the Nigerian authorities and now safe and stable but schools and clinics had reopened and attending to the needs of the people.

He added that aid agencies had also stepped up their engagement.

For example, the World Food Programme is providing rations for more than15,000 people and

the International Organisation for Migration and the UN’s refugee agency have supported families to build hundreds of all-weather shelters.

The Assistant Secretary-General however expressed optimism that following the change of leadership in the UN team more and direct assistance would reach the people.

He identified “poverty and climate change as the root cause of insurgency in the North-east and called on the Nigeria government, development and environmental organisations to synergise efforts in addressing the issues.

Apart from the humanitarian concerns to the UN, Lanzer disclosed that the re-emergence of polio was another thing is of great concern to the agency.

He expressed disappointment over the incident, describing it as a huge setback both to Nigeria and the UN. While stating that the UN was close to declaring Nigeria a polio-free nation following the absence of the disease in the last two years.

12

TUESDAY AUGUST 23, 2016 T H I S D AY

T H I S D AY TUESDAY AUGUST 23, 2016

13

14

T H I S D AY • TUESDAY, AUGUST 23, 2016

COMMENT

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

BUHARI AND THE NIGER DELTA CHALLENGE

M

Godwin Etakibuebu commends the president for opting to dialogue with the militants

y dear President, permit me to speak to you directly through this open letter for many reasons. Some of those reasons are well known regimented official rudiments which exclude some good people, with genuine advice, from reaching you. I am a basically in this class Sir. Suffice for you to know that addressing you through an open letter, like the case at hand, is not out of disrespect for your person and high office, but out of the exigency of “reaching you any how” because of the urgency the issue of the Niger Delta militancy presents.

It will be only proper to commence this discussion by appreciating you for rescinding your earlier hard stance of total military confrontation against the Niger Delta militants, now more known as Niger Delta Avengers [NDA], to a platform of negotiation or dialogue. This action of yours Sir, is a sign of great strength rather than weakness as some might see it. It is because you have chosen this approach that l am willing to advise you on the fastest way of reaching those that can make authentic negotiation and resolution of the crisis possible.

Take note of one fact Sir, that since the issue of dialogue and negotiation was presented by your person, voices of discord and discouragement have been raised more from your side of the divide - voices that are not complimentary to your stand of peaceful negotiation. For instance, your Vice- President’s opinion on the approach to peace in the Niger Delta, through dialogue, is slightly different and if his opinion is to be adhered to on the challenge at hand, doom is most likely to be the outcome. Ditto those who advised you immediately you were sworn in as president to cancel the Maritime University at Okerenkoko in Delta State, stoppage of the construction of what would have been the largest and best Shipyard in Africa, stoppage of the Amnesty Programme; amongst whom, unfortunately, was Rotimi Amaechi [former Governor of Rivers State and the DirectorGeneral of your campaign organisation].

These people meant trouble and evil for you at that time, and this you did not know, Mr President. They paved your path to success in governance with thorns and hazard – a trap you fell for when you made some policy statements contrary to the collective sensitivity of all those from the South/South geo-political zone. It was at this point that the battle line was drawn. This analysis also revealed the stupidity of a comment recently made by one of the leading opinion leaders from the North, who concluded that “the Avengers of the Niger Delta have nothing to avenge”. That conclusion could have only emanated from a shallow and perfidious mind, of someone who lacked qualitative sense of history. These boys, the Avengers, have much and everything

YOU HAVE DONE THE BEST AS ‘TALKING AND DIALOGUING’ IS THE BEST WAY OF AVOIDING COLLATERAL DAMAGE TO THE COUNTRY’S ECONOMY

to avenge. Yes, they have everything to avenge if pushed to the blink.

Sir, you have done the best as “talking and dialoguing” is the best way of avoiding collateral damage to the country’s economy, damage to the geographical ecological zone of the South/South [if military hostility ensured] and unnecessary destruction to both human lives and property.

Sir, let me place on record that present events in that region did not begin with the Avengers. The Avenger era is just another phase going by another name of a battle that started even before Nigeria came into existence in 1914.

You will recall that Major Temple, the Lt. Governor of the Northern Protectorate, suggested in 1912 “an autonomous six geo-political structures for both Protectorates of the North and South”. His was a call for a fiscally federated arrangement to be anchored on resource control of the then suggested federating units, while same was expected to pay royalty to the anticipated government at the centre.

The agitation, since that proposal of 1912, has not abated till date. Instead, it continued through the Harold Dappa Biriye’s 1959 formation of the Niger Delta Congress, to the Isaac Daka Boro’s declaration of a republic which lasted for only 12 days; before he was arrested, jailed and later released

by General Yakubu Gowon into a war of unification until he died on May 6, 1968, in battle. The same agitation was brought to the front burner by Ken Saro-Wiwa, the Ogoni environmentalist but the late head of state, General Sani Abacha and machinery of the Nigerian state murdered him on November 10, 1995. The Kaiama [the Izon home town of Isaac Adaka Boro in Bayelsa State] declaration of 1998 became a more fundamental structure of the same struggle until the Union of Niger Delta [UND] issued its communiqué on March 24, 2000. The struggle, by the formation of the UND, took the agitation beyond the Izon [erroneously called Ijaw] nationality enclave into encompassing the wider “geographical Niger Delta” region. I called it “geographical Niger Delta” because the nebulously packaged structure in the name of Niger Delta by Olusegun Obasanjo, for the purpose of forming the Niger Delta Development Commission, which includes Abia, Imo and Ogun States, remains an abnormality to the original Niger Delta region as captured by the Nigerian geographical map.

However the point being made here is that there may be different names at different times like New Era Movement, Niger Delta Youths Movement, MEND or even Niger Delta Avengers, but it is one war with various fronts. It has the same spirit, the same source of inspiration and the same ancestral backing force, and shall remain the same generational call to duty.

Etakibuebu, a veteran journalist, wrote from Lagos

A DISARMING APPROACH

N

The Rivers State government takes aim at well-meaning development, writes Simeon Nwakaudu

obody who has an open mind comes to Rivers State without falling in love with Governor Nyesom Wike’s superlative performance.

Even the diehard opposition politician in the state finds solace in political gossip, as the issue of development has been squarely addressed.

The other day, the editors endorsed the governor’s projects after they embarked on a project tour. This time, it was the Attorney General and Minister of Justice of Rwanda, Mr Busingye Johnston.

As a lawyer and administrator from a country that has been recreated, the Rwandan Justice Minister understands the rudiments of transformational leadership.

He is not a Nigerian politician, hence he cannot be accused of taking sides with the governor or his party.

In the last 14 months, Governor Wike has engaged in the most profound construction and reconstruction of infrastructure ever witnessed in the country. This is better appreciated when the condition he met Rivers State in May, 2015 is taken into consideration. From unpaid salaries for months to several abandoned projects down to sluggish economic activities which he inherited, Governor Wike has given life to all segments of Rivers State. He has made passion of growth and development.

As you drive into Rivers State from the airport or through the roads or waterways, you will discover a different Rivers State.

He is a resident governor in sharp contrast with the immediate past governor who resided in Lagos and airport lounges from where he frittered away the state’s resources, while the people mourned their fate. Under Governor Wike, the situation has changed: it is Rivers first. That is why the state is now host to international and national events.

To the Attorney General and Minister of the Republic of Rwanda, Mr. Busingye Johnston, Rivers State Governor, Nyesom Ezenwo Wike deserved commendation for embarking on meaningful development projects in the state. Mr Johnston said: “I am glad to report that what I have seen so far testifies that massive development is taking place in Rivers State “. He noted that on his way from the Port Harcourt airport, he saw several ongoing developmental projects, pointing out that such projects were what African states needed at the moment.

The Rwandan Minister of Justice said that the time has come for Africans to work towards building the continent so that the further generations would live more meaningfully. Also, the Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN) commended Governor Wike for his outstanding contributions to the development of the bar in Nigeria.

In his remarks, Abubakar Malami noted that Governor Wike has exhibited a higher sense of commitment to the development of the Nigerian Bar Association. He praised the governor for his contributions to the bar headquarters in Abuja which led to the

naming of one of the floors for Rivers. He said: “Your contribution to the development of the bar is remarkable. We are here to register our appreciation of what you have been doing for the bar”.

These two justice ministers bared their minds when they visited Governor Wike at the Government House, Port Harcourt.

Responding, Governor Nyesom Wike assured both ministers of justice that his commitment to the development of Nigeria and Rivers State was borne out of the desire to improve the living condition of the people. The governor said all African leaders must work together to lift the continent from the dark corners of underdevelopment for the sake of the future generations.

He called for the respect of the rule of law as all leaders engage in governance. Wike reiterated his commitment to the unity of the country, stressing that all his efforts are geared towards the sustenance of Nigeria and her economy. He said: “We believe that this country must be united. It doesn’t matter the political party we belong to, this country is one”. Governor Wike commended Abubakar Malami for showing maturity by paying him a courtesy visit. He pointed out that as leader of the bar in Nigeria, the Attorney General has proved that he has the spirit of accommodation. He said that the visit of the Attorney General of the Federal Republic of Rwanda has further proved the growing acceptance of Rivers State as a home of peace and an international destination of choice, despite the negative

propaganda by the opposition in the state.

Today, everyone wants to work with Rivers State and in Rivers State. Those who started the sponsorship of propaganda against the state have now realised the futility of their actions. With the several national and international conferences, hundreds of thousands are coming over to Rivers State and instead of witnessing violence, they have witnessed unprecedented development.

Rather than criticise the government and people of Rivers State based on the false information from the opposition, those who have visited have joined the expanding team of those who appreciate the governor for delivering on good governance.

It was also on Saturday, August 20, 2016, that the President of the Nigerian Bar Association (NBA) Augustine Alegeh (SAN) commended Governor Wike for his outstanding delivery of pro-people projects.

His commendation was inspired by his launching of the Dr Peter Odili Road in Port Harcourt, constructed by Julius Berger Plc. At the event, Governor Wike assured that he would never allow politics get in the way of the delivery of projects that would empower the people.

For Wike, every commendation is a challenge to take his performance to a higher level. Therefore, the Rivers people should continue to expect better performance from their governor.

Nwakaudu is Special Assistant to the Rivers State Governor on Electronic Media

15

T H I S D AY • TUESDAY, AUGUST 23, 2016

EDITORIAL THE DEATH OF CITIZEN NUNUGWO The death of Desmond Nunugwo should be investigated

T

he recent death in the custody of the Economic and Financial Crimes Commission (EFCC) of Mr. Desmond Nunugwo, Chief Protocol Officer to the Minister of State for Defence, has once again brought to the fore the issue of the rights of the accused under the Nigerian law. Nunugwo reportedly died within six hours after his arrest by operatives of the EFCC last June. His wife, Susanne, said the EFCC called her to come and bail her husband “while he was already in the mortuary”. Nothing could be more callous.

According to the EFCC, Nunugwo was arrested because he fraudulently obtained N91 million from an acquaintance after tricking her into believing that he had high networth business associates in Dubai.

But that was only an allegation for which the man was never convicted before his curious death. It is all the more sad that he would never be able to defend himself of this allegation. Therefore, it is important that there be a thorough investigaGOVERNMENT SHOULD tion, especially since TAKE CONCRETE STEPS this is another case TO OVERHAUL THE in the long list of COUNTRY’S CRIMINAL people dying in what JUSTICE AND PRISON is supposed to be SYSTEM protective custody in our country.

Indeed, it should worry the authorities that far too many people are dying in detention. Just recently, two suspects reportedly died in EFCC custody and up till today, there is no information about the cause of their death. A few months ago, a young man was also alleged to have been tortured to death by the Directorate of State Security (DSS) at their Shangisha detention facility in Lagos. At about the same period, the Sokoto State Command of the Nigeria Security and

Letters to the Editor

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

Civil Defence Corps (NSCDC) set up a committee to unravel the “mystery” behind the death in its custody of a 38-year-old suspect, Jamilu Abdullahi. The report of that committee is yet to be made public.

In particular, armed robbery and kidnap suspects are arrested and paraded at crowded press conferences addressed by police commissioners. After the “media trial”, there were reports that some of these suspects are extra-judicially executed and secretly buried in mass graves. Such suspects are usually reported to have died during shoot-out with the police anti-robbery squads or while attempting to escape from custody. But the unofficial justification is usually that if the suspects were charged to court they may be released and then turn round to kill the police personnel who arrested them!

Against the background that even condemned prisoners are still entitled to their fundamental rights, as the court decided in the case of Peter Nemi V Attorney-General of Lagos State, we demand that the security agencies to end the culture of impunity and human rights abuses. More importantly, the authorities must overhaul the country’s criminal justice system with the aim of ameliorating the inhumane conditions under which awaiting trial detainees and criminal suspects are detained.

It is all the more important because some of the deaths witnessed in recent times were attributed to overcrowding, prolonged pre-trial detention and inadequate medical attention. But our laws are clear on issue of deaths in custody. They require thorough investigation. We insist that from now on, the result of such investigations, including autopsies, must be placed in the public domain. In addition, government should take concrete steps to overhaul the country’s criminal justice and prison system. It is time to ensure that persons taken into custody do not necessarily end up in the mortuary. And the best way to begin is to ascertain the circumstances under which Nunugwo died after spending only six hours with the EFCC.

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.

NIGERIA AND THE QUEST FOR CHANGE Today, Nigeria is where it ought not to be, in terms of national development, its human and material resources, vast arable landmass, and effable weather condition. For all our human and material resources, our country has remained stuck in the mud of underdevelopment. Incredibly, countries that are less-endowed have out-paced Nigeria, economically and technologically. Didn’t Malaysia borrow its first palm seedlings from Nigeria? And India got its political sovereignty 13 years earlier than Nigeria.

But now these Asian countries are more technologically and economically advanced than Nigeria. Sadly, well-heeled Nigerians visit India for minor medical treatment as our health sector is comatose. And we import goods from them, too.

But, why is underdevelopment our lot as a nation? The reason is not far-fetched. Chinua Achebe, the inimitable novelist of world acclaim, diagnosed Nigeria as having leadership problem. No countries can grow above the dreams and visions of their political leaders. It is a known fact that bad political leadership is the bane of Nigeria. As Nigeria has not got it right, politically, development has continued to elude us. Our political leaders, who were beneficiaries of our culture of imposition of leaders on the populace, could not transform our country when they held sway. Alhaji Tafawa Balewa, Alhaji

Shehu Shagari, Chief Olusegun Obansanjo, and Dr Goodluck Jonathan frittered away the opportunities offered to them to better our lot and make Nigeria an economically prosperous and technologically advanced country.

More so, military interventions in our politics had stalled our progress. It was General Ibrahim Babangida (rtd.) that entrenched corruption in Nigeria. Sani Abachi, the kleptomaniac with sanguinary proclivities, stole Nigeria blind. Thankfully, since the dawn of the fourth republic in 1999, Nigeria has been enjoying uninterrupted political leadership. In the past 17 years, one civilian administration has handed political power to another without the country descending into a fratricidal civil war. It is a milestone in our national history considering our troubled past.

But excluding achieving smooth transition from one civilian government to another, Nigeria has not achieved much in diverse areas of national development. Our political history is a sad tale of civil war, ethnic strife and hatred, religious conflicts, promises, expectations, dashed hopes, and unrealised dreams. So during the electioneering for the last general election, millions of Nigerians who were disenchanted with Dr Goodluck Jonathan’s and clueless political leadership supported Muhammadu Buhari’s political ambition. He contested the presidential elec-

tion on the platform of the All Progressives Congress, a coalition of many political parties.

The APC’s mantra of change resonated with us. And today, Muhammadu Buhari is our president. He rode to victory in that election on the coattails of his Spartan lifestyle and famed aversion and dislike for corruption.

More than one year since this political administration came into power, the change he promised to bring in our country has continued to elude us. Now, it has dawned on us that it takes more than a leader’s zero tolerance for corruption for a country to achieve national development. It took him eon period to assemble an executive team. Yet his cabinet is not peopled by the best technocrats which Nigeria can offer. Some of the ministers in his cabinet are tired and recycled politicians who as corrupt as Goodluck Jonathan’s ministers.

They’re square pages in round holes. Others are political neophytes and jobbers whose deeds and utterances bring shame to us.

I would like us to think about Mr. Dalung, the sports minister, who dresses in a ludicrous manner with his beret worn at a jaunty angle. Since he became the minister of sports, he has continued to stumble in his deeds and speeches. He cannot get his act together.

Among the pack of ministers, he sticks out like a sore thumb. In the education sector, an educationist and professor is subordinated to a person whose area of specialty is not

educational administration. As to the education sector, do they think through their suggestions and proposals before making them national educational policies? Are the abolition of post-UTME and the hike in the school fees of unity schools not ill-conceived?

And owing to the dip in the global oil prices, Nigeria’s economy has gone into recession. At no other period in our national history had Nigerians suffered as they’re suffering now. Millions of Nigerians are scavenging in the dumpsites for morsels of bread to eat. Can’t our economic team think out palliative measures and implement them in order to reduce the economic hardship currently obtaining in Nigeria? Or the president should re-jig the economic team and inject new blood into it in order that it will perform better. If the economic hardship continues unabated in our country, anger may well up in our bosoms. And this may lead to revolt or revolution in Nigeria. The Arab spring is still fresh on our minds.

Is the president not aware that economic hardship in Nigeria and that the alienation or exclusion of a section of the country from his cabinet are some factors that fuel the Boko Haram terrorism, IPOB agitation for statehood, and the militancy in the Niger-Delta region?

So it is imperative for him to fix our economy.

Chiedu Uche Okoye, Uruowulu-Obosi Anambra State

16

T H I S D AY • TUESDAY, AUGUST 23, 2016

POLITICS

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

EXECUTIVE BRIEFING

NHRC: Where is the Fair Hearing?

What kind of body indicts or recommends people for prosecution without fair hearing? This was one question many of those indicted for electoral of fences are asking the National Human Rights Commission. Davidson Iriekpen writes

F

ormer Governor of Edo State, Professor Oserheimen Osunbor, last week, reacted angrily to the report of the National Human Rights Commission (NHRC) to the Attorney General of the Federation (AGF) recommending him and 65 others for prosecution for electoral offences. He challenged the commission to state the electoral offence and violence he committed.

Osunbor was declared winner of the Edo State governorship election in 2007 by the Independent National Electoral Commission (INEC) and consequently sworn in as governor before he was sacked from office by the Court of Appeal in Benin City in 2008. The court ordered that Adams Oshiomhole be sworn in as the rightful winner of that election. However, like it did in 2014, the NHRC penultimate week, released a report under its ‘Electoral Accountability Project/End Electoral Impunity Project’ in which it indicted the professor of law and 65 others, including organisations and security personnel as having committed electoral crimes in 2007 and 2011 general election.

In making the recommendations, the commission said it was exercising its power under Section 6 (1) of the NHRC Act 1995 as amended. The recommendations followed the council’s consideration of an independent review of evidence of gross violations of rights to participate in government.

In a covering letter to the recommendations to the AGF, the council said the purpose of recommending those who had committed criminal offences during elections was to address impunity. The letter, which was signed by the Executive Secretary of the commission, Professor Bem Angwe read in part: “The main objective being to address impunity by ensuring that individuals and groups indicted for various electoral offences are brought to justice to serve as deterrent, to uphold sanctity of the ballot and to ensure greater respect for democratic values amongst citizens.”

But Osunbor, a lawyer and professor, however challenged the NHRC to disclose the part of the judgments of the Edo State Election Petitions Tribunal and the Court of Appeal, where he was

It is interesting to note that there is nowhere in the Electoral Act that the power to prosecute anybody for electoral offences is outsourced to the NHRC. If INEC and the tribunals fail to do their duties properly, why should the NHRC think it could help when it knew that at the end of the day, it would be deemed as lacking the locus standi or described as busy body by the court?

Malami...the rule of law on trial

adjudged or said to have personally committed any offence.

In a statement he issued last week, Osunbor questioned the integrity of the commission and how it arrived at the recommendation without giving him the opportunity to defend himself.

He wondered how the NHRC arrived at its conclusion, saying it was a monumental tragedy on the part of the commission, which deals with human rights to degenerate into a willing tool for the violation of the human rights of law-abiding citizens. The former governor and two-time senator urged Nigerians to rise up against the commission in order to ensure that it does not become a behemoth that tramples on their rights with impunity. He equally noted that the commission acted recklessly or mischievously to tarnish his name and defame his character.

“If you read the judgment, my name was not mentioned that I committed any offence.

There were people specifically mentioned in the judgment. Somebody is using them against me and I know the person. I have challenged them to tell me the offence I committed. They said they are depending on the court judgment. Was I the only person removed by the tribunal? They should tell the world what offence I committed,” the former governor insisted.

He said when the report was published in 2014, he wrote a letter dated April 22, 2014 and addressed “to the NHRC Executive Secretary, Angwe, requesting among others, to disclose to me the specific electoral offence or offences I committed. I did not imagine that it will be difficult for the commission to do this given the fact that electoral offences are well set out in the Electoral Act. In his reply, the executive

secretary claimed that the Commission based its recommendation on the judgment of the Election Petition tribunal that nullified my election as governor of Edo State,” he explained.

Osunbor noted that the commission’s letter failed “to answer the question of what electoral offences I committed given the fact that neither the Election Petition Tribunal nor the Court of Appeal ever indicted me for any wrongdoing whatsoever, electoral offence inclusive.”

Dissatisfied with the response, the former governor said he commenced legal action against the Commission to quash the report, restrain them for further damaging his name and claiming damages.

According to him, the case “is still pending in court, a fact known to the executive secretary and the commission, yet they carry on wrongfully as if the commission is superior to and knows better than courts of law.” He added that the commission never confronted him with any allegation of commission of an offence neither did they invite him for any interrogation to afford him the opportunity to defend himself as guaranteed under the 1999 Constitution.

He therefore reprimanded Angwe, who is also a professor of law for heading a human rights commission with many lawyers and wantonly trampling on the rights of other Nigerians without considering the damage they are inflicting on them.

“For the commission to come up more than two years later to again announce my indictment by them for the commission of electoral violence or any other offence is to say the least in contempt of court and a display of naked impunity. The judgments of the election petition

tribunal and the Court of Appeal which nullified my election after cancelling votes scored by my party and some scored by the petitioners as well, did not indict me for any offence. The Court of Appeal judgment is reported in (2009) 4 NWLR (Pt 1132) 607.

“Throughout the judgment, nobody accused me or alleged that I committed any offence during the election and so the issue of my indictment by the tribunal did not even arise. For a body set up to protect the human rights of citizens to brazenly and maliciously engage in repeated violation of my rights is most unfortunate. My heart grieves for my country that our human rights commission headed by a professor of law and with many lawyers working with him should so wantonly trample on the rights of others without care about the damage they so inflict on the innocent,” he said He further stated: “It is inconceivable that the NHRC is ignorant of this law. The commission must disclose the part of the judgments of the election petition tribunal and the Court of Appeal, where I was adjudged or said to have personally committed any offence, or authorised the commission of any offence. The NHRC must tell the world what offence or offences Osunbor committed to warrant its recommendation to the AGF for his prosecution.

“It would be a monumental tragedy for Nigeria if our human rights commission degenerates into and becomes a willing tool for the violation of the human rights of law-abiding citizens.

We all owe it a duty to ensure that the NHRC does not become a Behemoth that tramples with impunity on the rights of citizens,” he said.

Osunbor argued that even if the commission assumed that it “indicted” him because his election as governor was nullified by the election tribunal and Court of Appeal due to the wrongdoing or criminal acts of others, it cannot possibly be ignorant of the law on this matter.

He cited the decision of the Court of Appeal in case of Falae vs Obasanjo to counter whatever indictment the Court of Appeal that nullified his election and which the NHRC relied on. He said it was inconceivable that a human rights commission was ignorant of the law.

In the case, Justice George Oguntade while delivering judgment in the petition filed by Chief Chief Olu Falae of All Peoples Party (APP) urging the election tribunal to nullify the election of Chief Olusegun Obasanjo of the PDP on the grounds that he (Obasanjo) committed electoral offences dismissed the prayers.

“The law is that even if a political party engaged in criminal activities, which would disqualify a candidate, it cannot affect the candidate unless it is shown that the candidate authorised or ratified the offending conduct. A candidate’s liability to have his election voided under the doctrine of election agency is distinct from and wider than liability under the criminal law…,” Apart from Osunbor, who has totally rejected the recommendations of the NHRC, many of those equally affected as well as observers have also expressed reservations, wondering what manner of a rights commission would indict or recommend people for prosecution without at least hearing from them. They also wondered where the commission derived the powers to recommend people for prosecution.

Section 149 of the Electoral Act 2010 and 2011 clearly put the power in the hands of INEC. For instance, the section states that INEC shall consider any recommendation made to it by a tribunal with respect to the prosecution by it on any person for the offence disclosed in any election petition.

NOTE: Interested readers should continue in the online edition on www.thisdaylive.com

17

T H I S D AY • TUESDAY, AUGUST 23, 2016

POLITICS

Bizarre Politics of Oil and Gas

The corruption in the oil and gas sector, sadly, is accentuated by ethnic politics. Goke Omisore writes

I

find some things very strange to understand in this country but equally very interesting and amusing – on a serious note. Our culture of arrogance grew steeply in the oil boom days to this oil doom day’s wealth. Now that it is vanishing under our nose the filtered arrogance of very few negligible men amongst of us is palpable. I am sure you must have run into one or two, may be a few, with a degree of haughtiness, who were flexing financial muscles. I am in the oil and gas industry. That says it all before the bubble collapsed, after thorough exhaustion.

However, it is undeniably fair that few men in this industry of oil and gas took deregulation and local contents to enviable heights of patriotism to them all. I doff my hat. They are the proud hope of greater tomorrow of Nigeria. But the rogues amongst of them must be demystified for who they truly are and their mission that has emptied our treasury must not go unpunished.

If you had enjoyed or profited from their day light robbery or better stated, criminal loots of our nation’s resources, I call that collateral or accidental windfall. It went around fairly well before the bubble burst. They wrecked our economy recklessly. Usually dressed to the nines, clean like a whistle, clean head shaved and diligently manicured gentlemen but often arrogant with audacious swaggers; they were cloaked in stolen doctored fuel subsidy.

The briefcase merchants of oil and gas – they held the nation spellbound in every sphere of our lives for years Where art thou vanished crooks? USDollar @ 400+ to one – left battered Naira waning in value while our economy is anorexic. Some people should be recalled for judgment day, I reasoned.

The local content law enacted with the best of intentions is to strengthen our collective interest of economic empowerment. Now, see how it has been thoroughly rubbished beyond the dreams and hope of a nation’s right of participation in growing and the sustainability of her own wealth and resources – our commonwealth frittered away by few men, with impunity. Give Nigerians an inch; they are capable of stretching it into a mile long on a negative note. They will bastardise it; unsalvageable by the Pope while we are prayerfully waiting for Jesus and hardly recognised by the wisdom that informed the enactment in the first place.

Get the best lawyers to decree or draft any law, ingenious Nigerians will riddle it with loopholes. What a species of homoserpient are we? And when it comes to such bazaar, it is often a well-orchestrated all Nigerians bazaar affairs. The Hausa man often led in his towering, Onilegogoro cap of admission into the corridor of power, breaking grounds with his preferred cousins often in AGIP (Any Government In Power”). Let us break up to make up a true fiscal federated union, where honesty reigns censored and legality affirmed. And please, let us stop this game of deceit and disillusionment.

The unwholesome activities most often powered

by WAZOBIA: Hausa man; his Igbo buccaneers, accompanied with his crooked Yoruba geniuses but often not the best educated only but in fact, truants and vagabonds thrive in such daring adventures. Then “We are all Nigerians; our great Nation; Keep Nigeria One.” They are wont to say, gleefully.

Give me a break. They are all usually in collaborations and well-coordinated criminal game of: The more you look, the less you see.

They move in and thoroughly devour and relish such kills with the ferocity of a well-coordinated Herds of Tigers feasting on their prey. Nigerians, take a deem view of the estates, this flawed amalgamation has a free for looting treasures.

It has always been a crooked country from foundations.

Before you know it, carcasses of their spoils will be littering our nation’s memories and our economy limping in retrogressions and regrets; porous and spongy, captured by a few, treating all of us with sadistic disdain in their wanton unrestrained greed. No, 419 is too petty a crime to situate their status nor their souls. Please, don’t insult their trade. Preferably, treasonable ruins of a nation hopelessly in economic bondage, is more like it.

Not greasy kids’ stuff of petty thefts. They hate

Buhari...looking in the right direction

earning money; they revel in making monies in all currencies – preferred customers of all Banks.

Then often belated, government will be running a feverish fire brigade emergency approach to reproach – long gone folks! Often, when the deeds have been markedly done, I beg, call in the US marines but I guess J.J Rawlings will be cheaper in cedes. Who is fooling who? They have the nation’s institutions thoroughly wired up in collusions, but averse in guilt; bed-ridden in debt and economic paralysis.

I dare President Muhammadu Buhari to do justice. We are in full support. Anything short of citizens’ revolution in this instance, is unpatriotic and a subjugation of the rest of us. In Saudi Arabia, I guess a stolen barrel of oil will earn you decapitation. In Nigeria, applause is considered more befitting of your new arrival status. If you are caught with ship loads of empty vessel, a national honour to boost is often your reward

The oil and gas guys that raped this nation blind, you can smell them at a good distance away by the aroma of their designer perfumes.

They reek of elegance and panache and you could scrape stolen wealth off their dubious foreheads as they ride down or walk down majestically in our so called classy social gatherings in our halls of shame, gloating, floating and glittering on our crater potholed roads (I am sure they expect apologies for damaging their wonders on wheels on such less dignified roads!) what it can do to their state of the arts glittering wheels – gloating unashamedly; unabashedly. guilt-ridden? No, perished the thought. You must be very jealous and envious to think so. In their weird minds, they are very hard-working, they claimed and their Man of God is in attestation and consonance. Damn, you mere mortals. Who are you to think otherwise when such men are often slated for Canonisation in knighthood?

They drive, sorry, they are often cruising around, particularly going nowhere, savouring the air of arrivals in utter lawlessness, anchored on stolen wealth. In local palance, that is best described or appraised as a success story to the admiration of the teaming maddening crowd – ignorant, docile, indifferent or helpless masses, whose tax payers’ kerosene subsidies of the poor serves adequately well to satiate and empower their gluttony and other variants of avarice mutating in highly contagious virus on our youths’ minds that are highly susceptible.

They manipulate the industry shamelessly through all sorts of banker’s instruments and magic papers, not sparing their lawyers expertise.

They are Messiahs, doling out often generously for the wrong reasons on Ego-tripping, uncharitable, unprintable charities in pittance from their deep vaults of stolen monies. Our nation’s cultures and values stand forever, I repeat, forever altered!

In Nigeria’s oil and gas industries or slaughterhouses, fingers are not equal, neither are the hangers, though an all-comers game. From the most educated to the itinerant illiterates, please bow for the oil and gas barons and the grand master bunkerers – the gurus. Don’t underrate the wiz kids; the lords of the creeks and crevices of the oil rich Delta sanctuaries of the black

gold – the Tompolos and Dukubos armed with moral piety of ownership.

Their claims to me seem legitimate in the face of wholesale sponsored state frauds, a large local governments’ sharing of our commonwealth. Who is going to bell the fat cat?

From their well-suited chauffeur-driven wheels to private hangers of few jets and the state of the arts Chateaur –French word for mansion or castle – eloquently distinguishes men from the little boys in oil and gas, often spoiling their friends and nuclear family in digital glittering yachts – customised – in this land of pure water sachets-drinking nation, a privileged luxury drink of some professors.

Our shameful institutions from our apex bank, CBN to all shades of other banks; NNPC and her subsidiaries of subterfuges and foreign oil companies and foreigners all took us to the cleaners in a no-holds-barred scavenging of a nation. They bent our backs and now forced us on our knees. Today, we are gasping for economic breath – anorexic and toxic. I think all culprits should be brought to book and they should lose all their ill-gotten wealth.

I dare President Muhammadu Buhari to do justice. We are in full support. Anything short of citizens’ revolution in this instance, is unpatriotic and a subjugation of the rest of us. In Saudi Arabia, I guess a stolen barrel of oil will earn you decapitation. In Nigeria, applause is considered more befitting of your new arrival status. If you are caught with ship loads of empty vessel, a national honour to boost is often your reward.

You are our economic Saints – certified home grown snubs in this banana republic.

If the superfluous world and the magic words of oil and gas, sounds confounding to you like magic, you are not alone but let me ease your fatigue of such high class “Science fiction” industry, powered by the ingenious of a few in just three words of petroleum products: PMS, diesel and kerosene. That’s what the fraud is all about, folks. How come the whole nation gets fooled by a few amongst of us for so damn too long and ruinous, yet, we all did nothing, nothing and nothing. I humbly submit.

-Omisore wrote from Lagos

18

TUESDAY, AUGUST 23, 2016 • T H I S D AY

FEATURES

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

Generation Next

On the occasion of International Youth Day 2016, Chineme Okafor, through Maryam’s story, examines Nigeria’s road to 2030 and what role any youth like her can play in eradicating poverty and attaining sustainable development she explained.

If Maryam fails to meet up with the early morning demands of sachet water from people taking their breakfasts, she could forfeit a huge portion of what would complete her meal ticket for that day.

But apart from losing out on that early morning sales and its bounties, the young lady who wears a chocolate complexioned skin over a slim moderate height physique also risks routine clampdown and detention by ambitious wardens of the city’s environmental protection agency.

She said: “Sometimes we get caught by task force, they once caught me and took me to a rehabilitation camp located in an orphanage. I was there for three weeks, I was there and then by God’s grace the day they were going to free people I was released, after I was released then I came back home and sat doing nothing, but then I realised that there was nothing I was going to do, I have to continue selling the pure water, so I continued with selling pure water.”

According to her, the wardens resume their enforcement of government’s ban on street trading from 10am every day; and she has to be smart to beat them to their game like all street hawkers in Abuja.

She said the uncertainty is almost palpable, and the danger endless. She will often ‘fly’

Maryam selling sachet water to keep her family

I

sell pure water, which is what I use to feed my family. I started selling it when I was in Lagos, in Malu Bridge that is where I sold it in Lagos before I moved back to Abuja and continued,” said Maryam.

“I leave home by six in the morning because of those who eat in the morning, and I come back around 5.30pm,” she added.

Maryam said she would have preferred to engage in any other economic activities to make a living but Nigeria has very limited jobs or access to economic opportunities for young people like her.

“If it was my own wish I would want to be selling shoes, veils, wrappers, I really want this if I can get it,” she added.

Her story lends credence to a 2012 survey of the National Bureau of Statistics which stated that unemployment amongst Nigeria’s young people between ages 15 and 35 was 54 per cent. This group was about 70 million when the survey was conducted.

The survey showed that young people were hugely shut out from economic activi-

ties and opportunities in Nigeria. Today in 2016, four years after, the situation has not really changed because the numbers from indications may have spiked, making it obvious that the economic energies of people like Maryam are left untapped through a broken-down system that invests little or nothing in building the capacity of its youths to play a leading role in ensuring poverty eradication and achieving sustainable development through sustainable consumption and production.

This is more especially so when the youth in question does not have any access to the structures of formal education. Maryam depicts such.

“I once went for training. I learnt knitting, using machine, when I was doing it, unfortunately the woman’s husband died, so I stopped going there, then my father said since I wasn’t going to school that I should go and learn sewing in a man’s shop I agreed, and you know some men always want you to be naughty with them so after observing him and I discovered

he was like that I decided to leave his shop,” she said.

So, left with little or no built capacity to generate a productive livelihood, youths like Maryam are condemned to hard choices.

Maryam took one of these hard choices, daily she has to make a 14 kilometre trip from her home in Karmo, a poor suburb in Nigeria’s hugely affluent federal capital city, Abuja, to Wuse Market in the city centre where she sells sachet water to thirsty people.

“I take public transport and I drop at Berger, and carry water from there, there is a woman’s shop (a wholesaler), she stays there, I enter her house first and she makes me sweep, mop and other little things in the house, before giving me pure water, if I buy N200 worth she gives me N300 worth because of those little things I do for her and she also gives me food to eat then I leave Berger to that bus stop after bridge and sell it there. If it finishes fine, if it doesn’t finish then I go to Wuse, from there I go to a filling station at Berger,”

Even though Nigeria has a national youth policy 2009 with a five-year action plan - 2009 to 2015 centered on providing a wide range of vocational skills; flexible employment opportunities; decent working conditions; and life skills to guarantee gainful employment and sustainable livelihood for her young people, its implementation has largely not attracted the government’s attention, this suggests that Maryam, like other young Nigerians are not considered relevant to Nigeria’s economic development

19

• T H I S D AY TUESDAY, AUGUST 23, 2016

FEATURES One of the key findings of the British Council survey in 2010 was that by 2030, Nigeria’s youth, not her oil will be her most valuable resource. It however added that the country risks a huge economic catastrophe with her failure to rapidly improve the capacity of this young people to deeply participate in all aspects of her economic development

Maryam selling sachet water on very busy roads in Abuja

Maryam is determined to work and earn a living but there are no jobs

Early to rise, early to work, Maryam begins her day

with the environmental wardens in hot pursuit most times throwing away everything on her head, or ‘roast’ if caught by them.

Dressed in a matching yellow and blue patterned traditional skirt and blouse fabric with a matching black veil over her shoulders

when she met THISDAY for this interaction, Maryam told a story that related with most of Nigeria’s young people, her words laced

with discontent for the Nigerian system.

The meeting with her was brokered by the Centre for Media Information and Narrative Development (MIND), an NGO which works with a small select team of community documentary journalists including THISDAY, to embed in and report the everyday lives of ordinary citizens living in the suburbs of Abuja. The team seeks to strengthen the voices of groups who rarely have a chance to air their views in public - mostly women and girls During most of her conversation with THISDAY, Maryam calmly clunked her slim fingers on the desk as if to drive home her point. She is inherently endowed with a strong and expressive personality. Calmly she disclosed that she is responsible for raising a nine-year-old son named Abba, whom she got from a rape incident, and who even though his father accepts paternity but has refused to take responsibility for his upkeep.

She told the paper that whenever she was up and about, she thought about nothing but surviving through the challenges that stood between her and the N500 needed every day to keep her family alive “Honestly, we just manage because it is better than staying at home. If you stay at home, you will just waste your time gossiping. It is better you go out and do business.”

Even though Nigeria has a national youth policy 2009 with a five-year action plan - 2009 to 2015 - centered on providing a wide range of vocational skills; flexible employment opportunities; decent working conditions; and life skills to guarantee gainful employment and sustainable livelihood for her young people, its implementation has largely not attracted the government’s attention, this suggests that Maryam, like other young Nigerians are not considered relevant to Nigeria’s economic development.

While the deviations in making this plan work persist, the options available to active young people like Maryam to access economic opportunities are increasingly shrinking. This equally indicates that in line with findings from a survey conducted by the British Council in Nigeria, the country may not be ready to benefit from the values her young people should bring into her economy by 2030 when their population would have become dominant in the country.

One of the key findings of the British Council survey in 2010 was that by 2030, Nigeria’s youth, not her oil will be her most valuable resource. It however added that the country risks a huge economic catastrophe with her failure to rapidly improve the capacity of this young people to deeply participate in all aspects of her economic development.

20

IMAGES

Vice President, Mobile Commerce, Airtel Nigeria, Femi Oshinlaja (right) and acting British Deputy High Commissioner to Nigeria, Ahmed Bashir during the cocktail reception for the International Award for Young People in Nigeria held at Nike Art Gallery, Lekki, Lagos...recently

T H I S D AY • TUESDAY, AUGUST 23, 2016

Photo Editor Abiodun Ajala Email abiodun.ajala@thisdaylive.com

L-R: Group Head, Banking / Microfinance, Letshego Holdings Ltd, Mr. Tom Kocsis; acting Managing Director, Mr. John Ologe; and Group Managing Director, Mr. Chris Low, at the unveiling of the Letshego Microfinance Bank / media conference in Lagos... recently ETOP UKUTT

L-R: Programme Director, Classic fm 97.3, Mr. Chukwuma Aligwekwe; Medical Director, Pathcare Medical Limited, Dr. Pamela Ajayi; Finance Director, Megalectrics Limited, Mr. Okwui Ubosi; Director, Pathcare, Dr. Richard Ajayi and Manager, Megalectrics, Mr. Ikenna Ubosi, during the doctors on air annual free medical mission to the general public, in Alimosho,

Manager, Public Affairs Department, NCDMB, Mr. Ejiro Dortie; Executive Director Services, NETCO, Mrs. Bola Ashafa; Executive Secretary, NCDMB, Engr. Daziba Obah; Director, Monitoring and Evaluation, NCDMB, Engr. Adelana Akintunde; Managing Director, NETCO, Engr. Siky Aliyu; Project Manager, QPDUP (MIPs), Engr. Alexander Kavercin and Executive Director, Operations, NETCO, Engr. Mustapha Yakubu during a visit by the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) to NETCO in

L: R: Commercial Director, Pfizer Nigeria and East Africa Region, Yinka Subair; Medical Director, Pfizer Nigeria and East Africa Region, Dr Kodjo Soroh; His Highness, Oba of Lagos, Oba Rilwan Akiolu;and Director Corporate Affairs, Pfizer Nigeria and East Africa Region, Margaret Olele; during the courtesy visit by Pfizer team to Oba’s Palace in Lagos....recently : ETOP UKUTT

L-R: Health Safety and environment Manager,SIFAX Port and Cargo Handling Services Ltd. Mr. Emmanuel Ogbor; General Manager, SIFAX Shipping, Mr. Henry Ajoh; Managing Director, SIFAX Group, Mr. John Jenkins; acting Managing Director, SIFAX Port and Cargo Holding Services, Mr. Mohammed Bulangu and the Transport Manager, Mr. Sogo Faola, at the SIFAX Group Vehicle Importation Service Launch in partnership with Hyundai Glovis and AES, in Lagos...recently SUNDAY ADIGUN

L-R: Provincial St Joseph the Worker, Province of Nigeria and Ghana, Rev Father Charles Ukwe; celebrant, Stephen Lucas; and Pastor, St. Dominic Cathollic Church, Yaba, Father Felix Onenheghie, during a media presentation on the send forth of Stephen Lucas’s 57 years of service in Nigeria by St Dominic Catholic Church Yaba in Lagos...recently.

L-R: Chief Executive Officer, Standard Alliance Insurance Plc, Mr. Bode Akinboye; Chairman, Mr. Johnson Chukwu and the Company Secretary, Mrs. Uruemu-Esiri Oghen, during the 20th Annual General Meeting of the Company in Lagos...recently SUNDAY ADIGUN

21

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD NIBOR OVERNIGHT 1-MONTH

R A T E S 17.4417 16.7724

3-MONTH 6-MONTH

A S 17.6079 19.8254

A T

NITTY 1-MONTH 2-MONTH 3-MONTH

Group Business Editor ChikaAmanze-Nwachuku Email: chika.amanzenwachukwu@thisdaylive.com 08033294157, 08057161321

A U G U S T 15.7532 16.0348 22.408

1 9 ,

6-MONTH 9-MONTH 12-MONTH

18.1773 18.9773 21.3886

2 0 1 6

EXCHANGE RATE N316.55/1 USDOLLAR* *AS AT LAST FRIDAY

Quick Takes SPDC Empowers Ogoni Youths

ENHANCING TAX COMPLIANCE

L-R: Partner, Tax and Regulatory, Deloitte, Mr. Yomi Olugbenro; Chief Executive Officer, Deloitte Nigeria, Mr. Fatai Folarin; Partner, Tax and Regulatory, Deloitte, Mr. Oluseye Arowolo; Zonal Vice Prsident, Nigerian Association of Small and Medium Enterprises (NASME), Mr. Jemi Alade; President, NASME, Prince Dengunagboade; and Team Lead, Enhancing Nigerian Advocacy for better Business Enviroment (ENABLE), Mr. Kevin Conray, during public presentation of tax advocacy paper aimed at micro, small and medium enterprises in Nigeria

by Deloitte held in Lagos ... recently ETOP UKUTT

Omotowa: How Nigeria, Six Other Oil Producers Failed to Save for Rainy Day Stories by Ejiofor Alike The outgoing Managing Director and Chief Executive Officer of Nigeria LNG Limited, Mr. Babs Omotowa has stated that Nigeria and six other crude oil producing countries suffered most severe consequences of the slump in crude oil price because they failed to save for the rainy day during the period of oil boom.

Speaking at a recent conference organised by energy reporters in Lagos, Omotowa, who identified the six other countries to include Russia, Venezuela, Norway, Iran, Iraq and Libya,

ENERGY said these countries did not save in the Sovereign Wealth Funds unlike many Arab nations.

He argued that while many of the stable Arab nations had started sovereign funds many years ago as a way to save for the raining days and diversify their economy, the oil boom of the 1970’s inflated the standard of living in oil producing nations, such as Nigeria.

According to him, Nigeria seemed to have abandoned everything else because of oil and also created expectations that could be fulfilled only by a

continued flow of petro dollars.

He said as the global industry had seen booms and busts from an average of $14 oil price in 1986 and $91 in 2008, it was not strange when oil price began a free fall in 2014 from $120 per barrel to today’s $44 per barrel.

Speaking on the nations with the most visible results from low oil prices regime, Omotowa said that the Nigerian currency, for instance, was “at its lowest level against the dollar, driving up food prices, making it difficult to pay salaries, causing companies to fold up or retrench workers, raising inflation levels”.

In Russia, Omotowa said

the rubble was haemorrhaging, driving up price of food, and pilling pressure on debt servicing. He said Venezuela was in such a mess that it had shortages of toilet paper. Debt default is a real possibility, he said.

According to him, with Iran, Iraq and Libya relying almost entirely on oil for their export earnings and domestic budgets, the turmoil in the region has affected oil production, while Norway has warned of a “severe downturn.”

“State-owned producers Continued on page 24

Fashola: Nigeria Loses 3,000MW of Electricity to Forcados Attack Decries quest for ‘lion share’ by Nigerians The Minister of Power, Works and Housing, Mr. Babatunde Fashola has stated that the country is losing about 3,000 megawatts of electricity to the attack on the Forcados subsea pipeline by Niger Delta militants.

Fashola has also decried what he described as the furore about which part of the country gets the lion share of projects, stressing that every road, every bridge, every streetlight, every pipeline is a shared national asset that belongs to each and every single Nigerian.

The Minister told energy reporters at a recent confer-

ENERGY ence they organised in Lagos that not long after the attack on Forcados pipeline, power generation dropped to about 2,000MW from 5,074MW. Fashola, who was represented by the acting Managing Director of Niger Delta Power Holding Company, Mr. Chiedu Ugbo, however argued that even at the 5,074 in February, the country was still short of where it ought to be as a nation. “In the short period between when we started work in November 2015 and February of this year, our generating capacity rose to

5,074 MW, the highest we have ever generated as a nation,” he said. The minister stated that in the 63 years of government monopoly between 1950 and 2013, the country’s maximum generation was 4000MW. He said the solution was that the needed more power, adding that it is the basis of the first phase of his road map – Incremental Power.

Fashola argued that it is not gas alone that will allow the country to achieve incremental power, stressing that gas is only one solution amongst many other underutilised solutions.

According to him, the

3000MW-capacity Mambila Power Station, for example, is likely to be the government’s most defining in the road to incremental power.

He noted that one of the things that struck him during the budget process was the furore about which part of the country got “the lion share” or how many roads were being built in the North or how many bridges were in the South.

Fashola insisted that those conversations were unworthy of the country’s collective national Continued on page 24

Shell Petroleum Development Company of Nigeria Limited (SPDC) has offered youths in Ogoniland another chance to start their own businesses through the second LiveWIRE programme being implemented by the company.

This follows the training of 105 Ogoni youths in the first tranche in 2014/2015. Already, more than 100 youths from the four local government areas in Ogoni -- Khana, Gokana, Tai and Eleme -- have submitted business ideas for the 2016 edition in response to newspaper advertisements.

“The LiveWIRE programme for Ogoni youths is a targeted initiative and is part of efforts to encourage youths in the area to take up viable and legitimate means of livelihood,” said General Manager, External Relations, Igo Weli. “The 2011 UNEP Report on Ogoniland had recommended programmes aimed at supporting youths for alternative means of livelihood so they can stay away from crude oil theft and illegal oil refining activities. We’re happy that the youths are enthusiastic about the opportunities we’re offering them through LiveWIRE.” The flagship youth enterprise development programme aims to reach young people aged 18-35 to start their own businesses through the provision of training and finance.

The three-month training covers welding and fabrication, electrical installation, food preparation and culinary arts, information technology, fashion and beauty care, carpentry and joinery and hairdressing and beauty therapy. The trainees will be provided starter packs at the end of the session to start their own businesses. Equipped with the skills and packs, some 78 graduates of the premier LiveWIRE session have started their own businesses and also created jobs.

US Oil Drillers Add Rigs

US drillers last week added oil rigs for an eighth consecutive week, the longest recovery streak in the rig count in over two years, as crude prices rebounded toward the key $50-a-barrel mark that makes the return to the well pad viable.

Drillers added 10 oil rigs in week to Aug. 19, bringing the total rig count to 406, compared with 674 a year ago, energy services firm Baker Hughes Inc said on Friday.

The oil rig count has risen by 76 since the week ended July 1, the most weekly additions in a row since April 2014, after US crude prices touched $50.

Energy companies kept adding rigs despite prices dipping below $40 earlier this month but analysts have revised down rig count growth forecasts.

Crude futures, however, have surged nearly $10 a barrel, or more than 20 percent, in just over two weeks on speculation that Saudi Arabia and other key members of the Organization of the Petroleum Exporting Countries will agree next month to a production freeze deal with non-OPEC members led

by Russia.

On Friday, US crude hovered at $48 a barrel, versus its 2016 peak of $51.67.

Court Acquits Lawyer over BP Spill

A prominent Texas lawyer was acquitted on of charges he made up thousands of fake clients to sue BP Plc for damages that the oil company caused in the 2010 Gulf of Mexico spill, court records show.

Mikal Watts was among five defendants found not guilty by a Mississippi federal jury of charges related to an alleged scheme to defraud a program set up by BP to compensate people who suffered economic losses from the spill. Two other defendants were found guilty.

The US Department of Justice had accused the defendants of submitting claims on behalf of more than 40,000 people who had not agreed to be represented by Watts’ firm, or else were identified with stolen or bogus Social Security numbers and other personal information.

“We have heard all those promises with each new government but we have scarcely seen the promises fulfilled” Minister of Power, Works and Housing, Mr. Babatunde Fashola

22

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD OMOTOWA: HOW NIGERIA, SIX OTHER OIL PRODUCERS FAILED TO SAVE FOR RAINY DAY

witnessed plunging prices poking holes in state budgets with wider ripple effects on the ability of such countries to tackle structural challenges including infrastructure and socio-economic issues,” Omotowa said. In Nigeria, Omotowa, however identified Lagos and Anambra States as the two well managed states that can survive assuming the statutory allocation is not forthcoming because of low oil price.

He identified the case of Anambra State where salaries are being paid as at when due, and the export of organic vegetables to the United States and the UK made headlines earlier this year as an example of prudent management of resources even without being tagged as an oil-producing state.

“At a point, these fiscal buffers created by Anambra State totalled at least N75 billon, a clear departure from the norm with its peers,” he added.

Omotowa noted that Lagos State’s Internally Generated Revenue (IGR), which was N600 million monthly in 1999, grew to N100 billion in the first quarter of 2016.

FASHOLA: NIGERIA LOSES 3,000MW OF ELECTRICITY TO FORCADOS ATTACK

responsibility.

“Let us be very clear; every road, every bridge, every streetlight, every pipeline is a shared national asset. They belong to each and every single one of us. If a Kano-Maiduguri road is riddled with potholes and adds hours to your journey time, will this not affect commuters who use it irrespective of where they come from? If the Lagos-Ibadan road is not pliable does it not affect the ability of consumers to receive petrol from the Atlas Cove, the Tank farms and other storage points in Lagos that supply other parts of the country?

When a pipeline is vandalised in Sapele, those in Ajaokuta, those in Geregu and beyond will feel the impact,” Fashola explained.

Group Business Editor

Chika Amanze-Nwachuku AgriBusiness/Industry Editor

Crusoe Osagie

Comms/e-Business Editor

Emma Okonji

Capital Market Editor

Goddy Egene

Senior Correspondent

Raheem Akingbolu (Advertising) Correspondents

Chinedu Eze (Aviation) Linda Eroke (Labour) Eromosele Abiodun (Maritime) Ejiofor Alike (Energy) James Emejo (Nation’s Capital) Obinna Chima (Money Mkt) Reporters

Nume Ekeghe (Money Market) Nosa Alekhuogie (Cap Mkt)

NEWS

Midcom Announces $50m Investment, Creates over 5,000 jobs Midcom Group has announced a $50million retail expansion, growing its Mstore brand from 300 outlets, to 1,300 in 2018 and over 2,000 outlets by 2020, which will make Mstore the largest mobile and electronics retailer in Africa and create over 5,000 jobs.

Midcom operates across 17 countries in Africa, the Middle East and Asia in a variety of industries including telecommunications, consumer electronics, dairy, education, commercial and residential real estate and Forex.

Mstore currently has a presence across Kenya, Tanzania, Uganda, Rwanda, Nigeria, Ghana and Togo and expansion will see the store increase its presence in these markets and enter new countries, including Chad, Ivory Coast and Senegal.

Midcom Group’s Managing Director, Akash Kumar said in a statement at the weekend that his company had been operating across the continent for over 14 years in an array of industries.

According to him, these industries complement one another by allowing the company to successfully apply the group’s combined knowledge and expertise of African markets and sectors to the continued growth of its brands.

“The expansion of Mstore is the latest realisation of that growth strategy, which we believe any other international organisation moving into these markets would struggle to replicate. By starting small, with 300 locations, we’ve used our knowledge of the markets to apply a strategy

that will make us the largest mobile and electronics retailer on the continent.

The expansion of Mstore will support another of our businesses, FERO, our recently launched line of mobile phones, by providing full sales and technical support to FERO customers across our markets. This type of on-the-ground support is a service no other mobile operator in Africa is able to offer,” Kumar explained.

Midcom Group’s new FERO

range of mobile phones are designed specifically for African markets, offering 16 models, from entry-level feature phones through to sophisticated premium smartphones targeting the top end of the market.

“We are operating retail outlets in prime locations to provide the best experience to our customers, who are now able to enjoy the ease of buying global leading devices in their region with manufacturer warranty. It is

a win-win situation for the consumer, our partners and the group,” Kumar added.

All Mstores are strategically located at prime locations in major cities across Africa and are equipped with state-ofthe-art infrastructure and IT tools to manage operations, along with well-trained experts providing customers with knowledge and technical expertise. Each store provides strategic and prominent positions for all brands to display their units. Brand promoters

are also present in these stores to provide detailed guidance to customers.

Mstore also provides technical support for customers facing issues with their devices, including a 48-hour turnaround time guarantee to resolve customer issues.

MStore generates its loyalty by providing advanced after sales services to satisfy customer needs, including free screen repairs for consumers when the product has been purchased from Mstore.

PROMOTING SAVINGS CULTURE

L-R: Chairman, Promo Committee/Regional Bank Head, Apapa, Obaro Odeghe; Executive Director, Shared Services & Products, Chijioke Ugochukwu; Deputy Managing Director, Balarabe Mohammed; Executive Director, Corporate Bank, Adeyeye Adepegba, all of Fidelity Bank at the unveil of the ‘Get Alert In Millions’ savings promo held at the Bank’s head office in Lagos…recently

NNPC to Focus on Redevelopment of Cross River, Skipper Seil of Dubai Sign Pact on Power Abandoned Oil Fields Requires $600m JV cash calls monthly

Ejiofor Alike The Nigerian National Petroleum Corporation (NNPC) has said that it will redevelop abandoned oil fields as part of the efforts to ramp up the country’s production and shore up federal government’s revenue.

NNPC also requires an average of $600million as joint venture (JV) cash calls every month.

Speaking at the recent 2016 conference organised in Lagos by energy correspondents, the Group Managing Director of NNPC, Dr. Maikanti Baru said extending the frontiers by diversifying the production mix and terrain was another strategy the corporation would pursue.

“We will encourage oil exploration and development in new areas, redevelop abandoned fields and ensure full utilisation of existing production acreages. The incremental production will help shore up government revenue,” he said.

Baru argued that given the low oil price, sustainable returns need to be maintained.

To achieve this objective,

the NNPC boss said the corporation was working on cost-saving measures that would ensure safe and profitable operations of the assets, while guaranteeing adequate margin for both the government and investors.

“Initiatives such as service sharing for clustered assets, standardisation of operating framework and contracts, resource pooling and reducing contract cycle time will be pursued.

To diversify the source of government revenue and capture value across the entire value chain, we will aggressively pursue domestic refining to take advantage of improved refining margin during period of low oil prices. To address the current sub-optimal performance of the domestic refineries, a new rehabilitation strategy, which includes the rehabilitation of all refineries, modification of the refinery business model and governance structures that tie capital investment performance to actual refinery output,” Baru explained.

Baru noted that the huge drop in revenue earnings as a result of the slump in oil

price poses a grave danger to the funding of the budget, stressing that the major challenge is securing the crude volumes to a level that ensures the delivery of the revenue target given that the price of oil is internationally determined.

He said the government was working to resolve the security issues so that the corporation could guarantee the volumes.

Baru said the $600 million monthly joint venture cash calls required by the NNPC had imposed huge funding challenges, adding that the corporation cannot deliver volumes without adequate funding of the oil and gas industry.

“With average JV cash call requirement of about $600 million a month, and coupled with flat budget levels over the past years, leading to underfunding of the industry.

The underfunding has stymied production growth; therefore managing the funding issues is our most immediate challenge and transparent innovative financing approaches are being reviewed to address these funding shortfalls,” Baru added.

In furtherance of his resolve to ensure 24-hour power supply in the state, particularly in Calabar, the Cross River state government has signed a pact with a Dubai based fitm, Skipper Seil, to provide a 100kva solar lighting generating system.

Also signed was an agreement for a 26 megawatts gas power turbine at the Tinapa Business and Leisure Resort, as well as the training of trainers in the Institute of Technology and Management, Ugep.

At the agreement signing ceremony held at the Governor Ben Ayade’s office in Calabar, President of the firm, Mr. Jitender Sachdeva gave the assurance that his firm will commence construction in about two months.

“We will work very hard, fine tune all the activities and try to be on ground after the PPA in December. I want to assure you that the plant in Tinapa for 26 megawatts will give a boost to electricity and will be completed in 18 months’ time,” Sachdeva said.

He said his firm chose to invest in the state due to the investment friendly policies of the Ayade-led administration and the fact that the state is peaceful and safe.

On the Institute of Technol-

ogy and Management, Ugep, the President, Skipper Seil group disclosed that “in addition to our Corporate Social Responsibilities (CSR), we have sent our team for the study of the technical Institute here in the state, and I can, with pride say, we are going to associate with your state in education as the Institute is now fully geared to start.”

Sachdeva expressed confidence in the zeal and doggedness of Governor Ayade, whom he described as “one of the few governors in Nigeria today who are paying salaries on time, “adding that “your projects are moving, your garment factory has been completed and I see you getting energy all the time even in the night and morning.”

Responding, Governor Ayade disclosed that the 100kvm solar power intervention will serve as a grid for industrial zones across the 18 LGAs in the state.

According to him, “solar power is a new way to go, because it is one way of reducing carbon emission to the atmosphere. It also creates new job opportunities for young people who are now interested in going into solar energy.”

23

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD

ENERGY

Rethinking NNPC’s Oil Search in the North Having frittered away billions of naira of state funds in the search for crude oil in the north, the federal government should adopt the successful models used in the Niger Delta, Anambra and Dahomey Basins by incentivising oil companies to embark on exploratory activities in new frontiers. Ejiofor Alike reports

T

he Niger Delta, which largely dominates the oil-rich Gulf of Guinea, did not join the league of other oil-producing regions in the United Kingdom’s North Sea, United States’ Gulf of Mexico and the Middle East’s Persian Gulf through the efforts of the federal government or the Nigerian National Petroleum Corporation (NNPC).

It was the private sector-led initiative that catapulted the Niger Delta to its current influential position in the global energy dynamics.

The NNPC, which started as the Nigerian National Oil Corporation (NNOC), established by Decree No. 18 of 1971 before the NNPC Decree of 1977 was promulgated, did not initiate the search for crude oil in Nigeria.

Exploratory activities in the country reportedly started in Araromi and Okitipupa areas of the old western region by a German company, Nigerian Bitumen Corporation in 1908, even though there was no discovery before the company’s activities were halted by the First World War in 1914.

Shell D’Arcy, a consortium owned by Royal Dutch Shell and British Petroleum, took over the exploration activities in 1937.

In 1938, the British colonial masters awarded the sole concessionary rights or exploration license to prospect for oil in the whole of Nigeria in 1938 to the Shell-led consortium.

In other words, the whole land in Nigeria became Shell’s oil block.

Shell’s efforts, which were interrupted by the Second World War in 1945, later resumed in 1947 and with an investment outlay estimated at about N30 million spread over nearly two decades, Shell discovered crude oil in commercial quantities at Oloibiri area of Bayelsa State in 1956.

After it discovered oil in 1956, the company’s license area, which initially covered the whole country, was restricted to only 40,000 squares miles in 1957.

The company recorded first shipment of oil from the Oloibiri fields in 1958, after ramping up production at average of 5,100barrels of crude oil per day.

Shell’s success attracted other multinational oil companies from the United States, Italy and France to join the exploration efforts in the country.

Discoveries in new basins Apart from the prolific Niger Delta, the efforts of the private sector led by Orient Petroleum Resources had also paid off in Anambra Basin with the discovery of about 30 trillion cubic feet of gas and one billion barrels of crude oil, according to the initial estimates by the Department of Petroleum Resources (DPR).

Some of the confirmed wells were discovered at Oroma-Etiti in Anambra West and Otuocha in Anambra East council areas of the state.

Seven Energy’s Oil Prospecting Leases (OPLs) 905, 907 and 917 are also located in the Anambra basin and these fields contain existing seismic evaluations and undeveloped gas discoveries.

Already, Orient Petroleum Resources is building a refinery in in Anambra to refine part of the crude oil into petroleum products.

Following the hydrocarbon discovery in the Anambra Basin, former President Goodluck Jonathan had on August 30, 2012 declared the state the 10th oil bearing state in the country.

Former President Jonathan had while inaugurating the Orient Petroleum’s Anambra River Production Facility in Aguleri-Otu, in Anambra East Local Government Area, said the discovery of oil in the area had catapulted Anambra into the league of oil-producing states such as Akwa Ibom, Cross River, Rivers, Bayelsa, Abia, Imo, Ondo, Delta and Edo. Very recently, private sector-led efforts also catapulted Lagos State into the league of oilproducing states when Yinka Folawiyo Petroleum led other private investors to strike oil in Dahomey Basin after 25 years of exploration, without the NNPC contributing a dime.

After spending 25 years exploring for hydro-

Buhari carbon resources off the coast of Lagos, Yinka Folawiyo Petroleum, in partnership with Panoro Energy ASA and First Hydrocarbon Nigeria (FHN) Limited, among others, made Lagos to join the league of oil and gas producing states in the country.

Crude oil production commenced from the Aje oil field located in Oil Mining Lease (OML) 113, offshore Lagos, on May 3, 2016.

Also of great significance was the disclosure that the oil field holds untapped reserves of about 650 billion cubic feet (bcf), although this is less than the 30 trillion cubic feet of untapped reserves in Anambra Basin.

Aje is expected to peak at 12,000 barrels of oil per day, and the flow rates would also increase as more wells are drilled on the field.

Located in the extreme western part offshore Nigeria, adjacent to the Benin border in the Dahomey Basin, the field is situated in water depths ranging from 100 to 1,500 metres, about 24 kilometres from the coast.

The Aje partnership, which was formed in August 2013, is made up of private sector players - Yinka Folawiyo Petroleum (operator), New AGE (African Global Energy), FHN, Energy Equity Resources (EER), Panoro, and Jacka Resources, with no financial contribution from the NNPC or the federal government.

‘Political’ search for oil in Chad Basin Having used the private sector to successfully explore and discover crude oil in the Niger Delta, Anambra and Dahomey Basins, it is increasingly strange that the federal government through the NNPC has continued to fritter away billions of Naira of state funds in what is regarded as political, rather than economic search for crude oil in the Chad Basin.

President Muhammadu Buhari recently directed the NNPC to also extend the search to Benue Trough.

In geological parlance, the Benue Trough is a major geological formation underlying a large part of the country, extending about 1,000 kilometres North-East from the Bight of Benin to Lake Chad.

Before this latest directive, President Buhari had directed the corporation to speed up its prospect for oil in the Chad Basin and Kolmani River, following the reported discovery of hydrocarbons by Shell in the area.

“Very close home, we have exploration activities on the Frontier Basin, that is, in the Chad; and there are some areas close to the

Baru Kolmani River where Shell has made indicative discovery of hydrocarbons and Mr. President has directed me to go into that area to further explore the magnitude and prospects of those finds,” NNPC’s Group Managing Director, Dr. Maikanti Baru had told a Benue State Government delegation in his office.

In line with the directive, Baru said the corporation would reinvigorate its frontier exploration and collaborate with the Northern Nigeria Development Company that is holding Block 809 where some of the finds had been found.

Though the search for oil and gas in the north is a welcome development, the use of state funds is a misplaced priority and many oil industry stakeholders, including the Ijaw Youth Council and the Urhobo Monitoring and Development Group had reportedly faulted this exercise.

Most oil and gas industry players believe that the NNPC had resumed exploratory activities in the Basin for political reasons, after its initial efforts that led to the drilling of 23 abandoned exploratory wells failed. NNPC has over the years lost millions of dollars in its search for crude oil in the Chad Basin, without any strong indications that the efforts would yield positive results. Six of the 23 wells were said to be located few kilometres north of the palace of the late Shehu of Borno, Alhaji Mustapha Umar El-Kanemi in Gajiganna.

The renewed search is hinged on the fact that oil was discovered in bordering regions of Chad, Niger and Cameroon.

But a geologist with one of the International Oil Companies (IOCs) had told THISDAY that the search for oil in the Chad Basin would not yield any positive results, as “the basin is too young to contain hydrocarbons”.

“Chad Basin is too young to contain hydrocarbons. The basin is deeper in Chad Republic but very shallow in the Nigerian side. It does not have the required temperature and pressure to form oil because it is shallow. That is why all the exploration work there is done by the NNPC because no oil company will go there to waste money. The government knows that but the NNPC has to remain there because of politics,” he said.

The acquisition of 3-Dimensional seismic data, which was being carried out by the NNPC was said to have been disrupted by the Boko Haram insurgency at the project site at Kukawa near Lake Chad.

Statistics obtained by THISDAY showed that the NNPC had acquired 370 square kilometres of seismic data between January and May 2010 with a target to achieve 530 square kilometres

by December 31, 2010 before activities were interrupted.

The total volume earmarked for acquisition at the Chad Basin operations of the NNPC was 3,550 square kilometres under a 12-phased programme, the statistics revealed.

Of the 12 phased 3D seismic data acquisition programme, Phase 5 covering 252 Square Kilometres had been concluded.

Under Phase 1 to Phase 5, a total of 1,437 Square Kilometres of seismic data has been acquired with 1,096 Square Kilometres of seismic data duly processed and ready for interpretation.

Though the seismic data acquisition under Phase 6 covering 266 Square kilometres was supposed to have commenced at the project site at Kukawa near Lake Chad, the Boko Haram insurgency had hampered the efforts.

The corporation had engaged Chinese investors, who discovered oil in the neighbouring Niger and Chad in the crude exploration in the Chad and Sokoto basins.

NNPC’s New Frontier Exploration Division had also worked in consultation with a renowned Geophysicist and Consultant to the United Nations, Prof. Deborah Ajakaiye who led a team of Nigerian and foreign Geologists/Geophysicists in the search for hydrocarbon deposit in the Nigerian Frontier Inland Sedimentary Basins (NFISB). The search also covers extensive inquest in the entire Nigerian Frontier Sedimentary Basins which includes- the Anambra, Bida , Dahomey , Gongola /Yola and the Sokoto Basins alongside the Middle/Lower Benue Trough.

It is the wish of every Nigerian for oil to be found in all the states of the Federation but this is clearly impossible.

The government should not waste resources in the politicisation of the search for oil in every nook and crannies of the country.

If it is a worthwhile business venture, the private sector should be incentivised to lead the exploratory efforts in the new frontiers.

In line with the theory of comparative advantage, the federal government should partner states with high deposits of solid mineral resources on how to exploit these resources.

Since oil cannot be found everywhere, states with solid minerals can operate on a business model to be self-sufficient and financially independent of the federal government’s allocations.

24

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD

ENERGY

Bulk Trader Empowers Gencos to Access Discos’ Letters of Credit Stories by Chineme Okafor in Abuja The Nigerian Bulk Electricity Trading Plc (NBET), better known as the Bulk Trader, has assigned to the electricity generation companies (Gencos), the right to drawdown payments for power supplied but not paid for by electricity distribution companies (Discos) from the Letter of Credits they lodged as payment guarantees with their banks.

NBET said it had payment guarantees from bankers of eight Discos, and had devised a new structure which vested on the Gencos, the rights to directly demand for payment from the bankers when Discos defaulted in their remittances

to it for them.

The Bulk Trader explained that the strategy was informed by the poor revenue remittance performances of the Discos, as well as their reported disregard for market rules governing the country’s electricity market.

Recently, the Discos’ remittances have largely fallen to an average of 40 per cent, due largely to drop in power supply and low revenue collections.

This situation has however impacted heavily on the operations of the Gencos who also raised the alarm that debts owed them on power supplied was gradually choking them out of operation. Six of the nation’s privatised Gencos in a recent statement signalled their intention to shut down operations on accounts of an

outstanding N145.475 billion debt owed to them. The Gencos are Egbin; Trancorp Ugheli; Sapele; Geregu; Kainji/Jebba and Shiroro.

However, NBET’s Acting Managing Director, Mr. Waziri Bintube told THISDAY in an interview that the agency had worked out a new structure to enable the Gencos make direct payment demands from banks where the Discos lodged their letters of credit on its behalf.

The letters of credit serve as payment guarantee for energies generated by the

Gencos, bought by NBET and sold to Discos. It is a form of financial security on power sold to Discos.

“When we are buying power, the main source of payment is remittance from the Discos. They also give us letters of credit from their banks, and it is like a guarantee from their bank to say should they fail to pay us, their banks will pay us. “Out of the 11 Discos, about eight have given us that guarantee and it is just that we have not called on them because we are

very sensitive to the impact it might have on the banking industry but we have formed a structure and assigned our rights on those guarantees to the Gencos who can now call their banks and make them pay if the Discos fail,” said Bintube.

He confirmed the Gencos were largely affected by the poor remittances from the Discos, and that assigning rights over the Discos’ payment guarantee to them was part of efforts to keep them working.

Bintube further explained: “So, there are three levels of

the waterfall, first is the cash collections from the consumers which the Discos are supposed to pay and if they fail, there is the LCs from their banks and then third level is the World Bank partial risk guarantee, though, it is not all the Gencos that have it, but what it does for the Gencos that have it is that if NBET and the Discos fail to pay them, then the World Bank through that structure pays them and that is why it is called partial risk guarantee and not full but kicks in when the need arise.”

IPMAN Plans to Crash Prices of Petrol, Kerosene The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said it plans to crash the pump prices of petrol and kerosene in the country as soon as the Central Bank of Nigeria (CBN) and the federal government fulfill their strategies to buoy the naira against the dollar and also deliver cargoes of kerosene into the country.

A faction of IPMAN led

by Mr. Chinedu Okoronkwo disclosed recently in Abuja that federal government has placed order to import huge cargoes of kerosene into the country. The association said it has received assurances from the government that its members will receive good quantities of the supply when the cargoes arrive.

The association said this would also come without any of its members paying bribes to anyone or government officials before getting their allocations delivered to them.

IPMAN’s Board of Trustees (BOT) chairman, Alhaji Sharif Abubakar Usman said this when the eastern zonal executive of the association was recently inaugurated in Abuja.

His assertions were further buttressed by IPMAN’s President, Okoronkwo who explained that the CBN’s planned increase of access to foreign exchange (forex) would lead to a fall in the pump prices of petroleum products.

He added that the association will take advantage of that opening to sell at affordable prices to Nigerians at its filling stations across the country.

“Very soon, the products DPK and AGO will be in circulation under the leadership of Elder Chinedu Okoronkwo. Those that are not aware they are aware now. Sooner or later but I cannot say today or tomorrow but very soon AGO will arrive. DPK will arrive this country under the leadership of Okoronkwo.

“These products we got them from the federal government and it is in large quantity. Not small quantity that you will say is five or 10 metric tons. No, it is more than that and it will go round. Everybody will get his own share,” Usman said He further told its members at the meeting that kerosene which is currently scarce in the country will soon be circulated

sufficiently to them.

He noted that upon arrival, no member will be required to lobby or bribe to secure their allocations.

“And when it arrives each and every one of us will get allocations. Sit down where you are. You don’t have to bother yourselves because it is time to fight corruption “We agree with that and we are in support of the federal government. I say sit where you are that you don’t have to come to Abuja to give bribe looking for allocation of two or three trucks of product. Go to your depots manager, go to your zonal chairman, you will get it, you don’t have to waste time going to Lagos or Abuja for the product,” he added.

Similarly, in his response as to how much the kerosene will sell at their filling stations, Okoronkwo said, “it will be lesser than what the NNPC retail outlets will be selling.”

Asked whether the prices of petroleum products will go up as recently speculated in some quarters, Okoronkwo said CBN’s expected intervention will culminate in the appreciation of the naira against the dollar.

He also stated that upon that, importers and marketers will take advantage of the opening to import products and sell at prices lesser than what it is today.

“Right now, you are aware that some Bureau De-Change have qualified to get the forex.

And very soon there will be forex in the system, where people can now leverage.

“And if we have enough forex which means the price at which people are getting it now will drop.

And it will now impact in every other business, and I think we should be following the trend. Very soon the CBN will release dollar and that will make the naira to appreciate and crash the dollar.

“For marketers, importers and manufacturers everything will begin to rejuvenate again.

IPMAN will also leverage on this window to ensure that our products come at a price that members of this country will enjoy, at a price that will not be what it is right now,” Okoronkwo explained.

SIGNED AND SEALED

Cross River State Governor, Professor Ben Ayade (left), exchanging the Memorandum of Understanding (MoU) with the President of Skipper Seil Group of Company, Mr. Jitender Sachdeva in Government House, Calabar…recently

IPMAN Solicits NPF’s Assistance in Protecting Oil Facilities

Fashola: Exorbitant Tariff Hampers Coal Power Development

Dele Ogbodo and Maryann Abin in Abuja

The Minister of Power, Works and Housing, Mr. Babatunde Fashola has given reasons why investment decisions on the development and deployment of coal power generation into Nigeria’s energy mix has largely slowed down. Fashola revealed that there was a significant gap in the retail tariff proposed for coal as against the current tariff approved for gas and hydro power generation in the Multi Year Tariff Order (MYTO) of the Nigerian Electricity Regulatory Commission (NERC).

He said promoters of coal power wanted their tariff set at N36 per kilowatts hour (kwh), that is, N12 above the current N24/kwh average tariff used in the MYTO. The MYTO tariff is also under contention by consumers as being quite high.

He disclosed this at a recent meeting with the Acting Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Hajiya Ladi Katagum in Abuja. The outcome of their discussion was contained in a statement from his senior aide on communication, Mr. Hakeem Bello.

Fashola said, it was at the tariff determination stage that the government felt the need to protect consumers against such high price per kwh of electricity from coal, hence,

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has solicited the assistance of the Nigeria Police Force (NPF), in putting a stop the vandalism of oil installations, pipeline vandalism and diversion of petroleum products.

The Deputy Commissioner of Police (DCP), Donald Awunah, the Force Public Relations Officer (FPRO), made the disclosure in Abuja.

According to the statement, the Chairman of the Board of Trustees (BOT), Alhaji Aminu Abdulkadir, commended the acting Inspector General of Police (IGP), Mr. Ibrahim Kpotum Idris, and his management team on his new initiatives aimed at repositioning the NPF to international standard.

While lauding the IGP, on crime control across the country, he pledged that IPMAN will continue to partner the Nigeria Police Force in its efforts at reducing crime across the country.

He however informed that it is glaring to know that the lingering crisis that affected the stability of the association was resolved through the intervention of the Ministry of

Petroleum Resources and other stakeholders.

He said: “I assure you of IPMAN’s collaboration to check the activities of pipeline and oil installations vandals, illegal bunkering and diversion of petroleum products.

Also in a remark, the President of IPMAN, Chief Obasi Lawson commended the IGP and Nigeria Police Force for its giant strides in curbing crimes and criminality.

He promised to bring his experience to bear in checkmating crimes associated with pipeline vandalism.

In his response, Idris while appreciating the visit and thanked the management of IPMAN for the courtesy call.

The IGP expressed determination to implement core values in policing with accountability and responsibility throughout the country.

He assured the association that pipeline vandalism across the country will be accordingly tackled through deployment of strategic intelligence at oil installation sites and pipelines across the country.

The statement added that the IGP acknowledged the efforts of the BOT Chairman and his team in resolving the internal crisis within the association amicably.

the delay in concluding any deal on coal power.

According to him, power Purchase Agreement is what really leads to power generation as it enables the investor to get credit from the bank.

“If you don’t have that agreement you won’t do a power project. And if your business plan and tariff plan is high, we won’t sign because we have an obligation to consumers; to give them power on a competitive basis, a fairly low price basis that enables the investor to recover his money and make profit but not to profiteer,” Fashola said.

He said: “It is at that PPA level that government protects consumers. That is where we protect consumers that you cannot go and throw any kind of tariff on them.”

The minister said the Nigerian Bulk Electricity Trading Plc (NBET) was not ready to approve a tariff set by coal power investors and which was well beyond the target set in the industry, hence, the deadlock in further negotiations.

“They wanted to set their tariff for coal power at 18 cents per kilowatt hour. Now if you multiply that with N200, assuming that was the exchange rate, you would be getting about N36 well over and above the contentious N24 tariff.

25

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD

INTERVIEW

Wali: Our N500bn Stimulation Facility will Provide Funding Opportunities to Exporters In this interview, the acting Managing Director, NEXIM Bank, Mr. Bashir Wali provides insight on the newly launched N500billion Export Stimulation Facility for Nigerian exporters and the rediscounting/re-financing facility. Excerpts: Tell us what NEXIM Bank is all about The Nigerian Export Import Bank, with the acronym NEXIM is a government development finance institution. It is an export credit agency established and wholly owned by the government and its mandate is to diversify the external sector of the Nigerian economy by opening of the non-oil export sector. The bank, in doing this, provides market information and export advisory services as well as lending facilities for entrepreneurs in the export sector of the economy. In doing this, we encourage diversification and foreign exchange earnings from the non-oil export sector.

Can you give us a sense of the current and potential non-oil export market in Nigeria?

Nigeria is a blessed country, in so many respects.

We have resources both in the agricultural and solid mineral sectors. From the National Bureau of Statistics, the total non-oil exports earnings of Nigeria in 2015 amounts to $5.9 Billion with an average of $6.18 Billion over the past 5 years. The fact is that these are the official figures. In terms of informal trade, what we have is much higher. The annual information estimates in terms of informal trades from the Nigerian Export Promotions Council ranges between $12 billion to $14 billion annually. You can well imagine the potential in the non-oil export sector if properly harnessed.

How do we increase these numbers in the non-oil export market? What are those key factors that the non-oil exporter should consider before taking their decisions about financing?

For any entrepreneur, the first and basic requirement is that you should know what you are getting yourself into and what area you are investing in. Once you have done your study and have considered the pros and cons, the opportunities and the challenges, then you need to have a platform.

That platform could be in the form of an incorporated company where shareholders will jointly participate by having investments or you can have a cooperative; especially for SMEs based on their size.

The cooperative will provide for a proper synergy as well as the platform where you can have collateral security which is one of the major challenges entrepreneurs in the SME sector face. Then of course you need to have a proper business plan, a feasibility survey and a report.

The next step is to link up with an export owner or a have a firm contract with an off-taker for the goods or products you are intending to export. Furthermore, ensure that you conform and keep to the standards, both in terms of quality, in terms of packaging and keep to time in terms of delivery. The most important aspect in a business relationship is integrity and credibility.

What has been the major challenge with exporters who visit NEXIM Bank for this facility?

The major challenge for Nigerian entrepreneurs is the issue of process. Entrepreneurs in Nigerian and in other parts of the world are impatient to get going and only a few have the resilience to go through due process.

Documentation for exports take time and is pains-taking. The processes in terms of meeting up to quality standards and control, in terms of packaging, in terms of having collateral backing for the funding support required all take time. Due diligence and KYC requirements, both locally and externally, take time. I think patience is one of the key issues that we have to bear with.

What are the main objectives behind the

Wali Export Stimulation Facility of N500 billion?

The Export Stimulation Facility of N500 billion (ESF) was launched by the Central Bank of Nigeria. It is an initiative that is aimed at incentivizing and encouraging entrepreneurs in the export sector to boost the foreign exchange earnings of the country from the non-oil export sector. The access to funding of the export sector of the community has been placed to about 0.4% of the total domestic private sector loans. This has underscored the need and urgency to come out with an incentive scheme that will give encouragement and

For any given credit request, the first and cardinal thing is to look at the individual or the company applying.

Credibility and integrity are the primary considerations. One has to have credibility before you can be fit for consideration for any facility

access to funding and funding opportunities to entrepreneurs in the export sector; hence the N500 billion lifeline.

What are the documentation requirements for the ESF? The CBN in collaboration with NEXIM has tried to simplify the processes and shorten the waiting time. One of the attributes of the ESF is the direct link with the commercial bank, because the whole process is initiated by an entrepreneur with his own commercial bank.

It is the commercial Banks that appraises and analyses the request. Once they find that it meets the requirement and that it is an exportable commodity with market good market up-take, they will process and recommend the facility for approval by the CBN through NEXIM Bank.

NEXIM Bank will evaluate and make an input and pass a recommendation to the CBN for approval. From the time NEXIM receives this recommendation from the commercial bank to the time of final approval by the CBN is a period of 20 days. This underscores the importance which the CBN and the Federal Government places to the regeneration of the export sector. We believe that within this short span of time, any committed entrepreneur will be able to meet the documentation requirement and will be able to draw down and start business.

Is there a maximum limit for this facility?

For an individual entrepreneur, or incorporated company, or a registered business name or even an individual person, the maximum limit is N5 billion. I have used this in the generic sense of the word. Of course if you are looking for N5 billion as an individual, you have to be able to go through the rigors of evaluation.

How does the Rediscounting/Re-financing Facility of N50 billion (RRF) work?

The Rediscounting/Re-financing Facility is a window given to commercial banks to refinance

or rediscount existing risk obligations they have already granted to their customers. It is a window that is meant to provide liquid funds for risk assets that have been created and to give opportunity for creation of other risk assets by these commercial banks; thus broadening the scope and application of these funds. It provides concessionary interest rates. Incidentally, both the ESF and the RRF are at discounted interest rates to give encouragement to the non-oil export sector.

What does the NEXIM look into before recommending an individual for a loan?

For any given credit request, the first and cardinal thing is to look at the individual or the company applying. Credibility and integrity are the primary considerations. One has to have credibility before you can be fit for consideration for any facility. Secondly, you have to consider the objective of the loan. Is it a profitable venture? If funding support is given to a given customer, will he profit by it? In the process of profiting by it, will the lender also profit by it? For the lender to profit it could be in a variety of ways.

For a development finance institution or for a government that is intervening in a given sector, satisfaction and benefit will be by way of developing that sector. For a commercial banking enterprise or for a business man who is investing for profit, it is the return he will get on the money that he has invested.

For the given customer who is undertaking a particular venture, it is the return that he will get on his investment in terms of time, in terms of money and in terms of commitment that matters. At the end of the day, if all of these indices meet, of course you take collateral as a fallback position. It is a fallback position but it is a regulatory requirement for lending in Nigeria. Any financial institution that is lending money must lend, but with security.

You have to consider the adequacy of the backup collateral that is provided.

26

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD

INDUSTRY

Nigeria’s Economy Sinks Deeper With capacity utilisation in the manufacturing sector crashing below 20 per cent, Crusoe Osagie reviews the challenges of the ailing economy and the government’s strategy to restore stability Hopefully, the President Muhammadu Buhari-led government might have realised that it will no longer cut it to simply dismiss the outcry of Nigerians over grinding poverty caused by a contracting economy by simply blaming its predecessor of corruption and looting.

Analysts say the punch line is spent and is no longer acceptable.

The hungry man just wants food, he is not interested in any blame game; the unemployed person needs a job; the homeless needs shelter; people challenged in their health need adequate medical care and so on.

To underscore the depth of the economic crisis in which the country currently finds itself, manufacturers last week announced that the continued decline of capacity utilisation in the country posed a major threat to the already ailing real sector of the economy, resulting in massive job losses.

For an economy whose managers have repeatedly touted the term economic diversification from hydrocarbon to the real sector as the salvation plan, an announcement that capacity utilisation has dropped to an abysmal level is a severe emergency.

Production Decline The Chairman, Manufacturers Association of Nigeria (MAN), Apapa Branch, Mr. Babatunde Odunayo, last week explained that the manufacturing sector recorded a 20-per-cent drop in capacity utilisation at the end of the second quarter of 2016, stressing that the sector currently operates under 20 per cent of its capacity.

He blamed the decline primarily on the scarcity of foreign exchange for raw materials replenishme nt and the declining purchasing power of consumers in the country.

Managing Director of Cradle Peak, a small scale packaging materials manufacturing company in Ogun State, Mr. Ikponmwosa Obano, corroborated the declaration made by the MAN executive, saying that his company has faced tremendous challenges sourcing raw materials to keep his machines running.

Meanwhile, Odunayo said apart from the scarcity of forex and declining disposable income, the manufacturing sector was also challenged by long-standing negative factors that are yet to be addressed, including inadequate municipal power supply and poor access road networks.

Odunayo said the theme of the forum: “Nigerian manufacturing sector in a time of economic crises; survival strategies” was apt, considering the current ‘tsunami’ blowing across the country, adding that it was the most challenging economic storm the nation had ever experienced.

He added that the reason behind this economic downturn began with the mismanagement of the windfall that was gained from exceptionally high oil prices between 2010 and 2014, saying that the government at that time did not cultivate the culture of savings.

“As soon as oil prices came crashing down, the country became exposed. The challenge now remains how to manage the aftermath of the oil price drop and its resultant 70 per cent drop in revenue earnings for the country.

The Buhari-led administration is faced with this challenge,” he said.

He noted the efforts by the current administration aimed at revamping the economy, saying that the federal government’s plan for a $1 billion Euro bond for capital projects was a welcome idea. According to him, the most critical of objectives of the present administration was premised on policy, governance and security, including ensuring a stable and predictable currency exchange rate.

Furthermore he said the exchange rate must be supported from two sources such as flexibility and support from direct foreign investment and inflows into the country.

He also called for external borrowing to shore up the naira in order to support poorly funded government businesses through funds injection into the forex market.

Buhari According to him, this would stabilise employment, drive infrastructure development, develop, and prepare grounds for non-oil export development through appropriate investments.

He added that many companies now declare huge exchange rate losses, pointing out that these losses already run into hundreds of billions of naira with many manufacturing outfits closing down.

Odunayo said Nigeria’s gross domestic product (GDP) had declined from a robust $568.5 billion in 2014 to $481.07 billion in 2015, stressing that for the first time since 2010, Nigeria has suffered a drop in its GDP with a year-on-year decline of -15.3 per cent in 2015.

“This decline may continue unless dollar funds can be injected to support private and public sector needs,” he said.

He added: “The greatest challenge facing Nigeria at the moment is low productivity.

According to a recent CBN report for the second quarter of 2016, industrial production stood at near zero. It reduced to as low as 6.4 per cent in the second quarter of 2016.

“Whereas revitalised industrial production seems to be the single most potent solution to the current economic recession in Nigeria.”

FG’s Effort In the midst of all the challenges, the federal government is proposing varied remedies, which do not seem to have yielded much benefit at the moment although there is still some time to test the effectiveness of the interventions.

Recently, the Vice President, Professor Yemi Osinbajo, unveiled the plan of the government to stimulate the nation’s economy, which was officially announced to have slid into recession about a month ago.

Osinbajo said part to the plan to get the economy back on the path of growth would involve steps to immediately reduce fiscal imbalances and forex volatility, as well as lower interest rates and increase lending to the real sector.

He noted that the government expects that the new initiative to jump start the economy and return it to rapid growth.

He explained that other tasks to be given immediate priority included boosting dollar liquidity, curbing inflation and increasing Foreign Direct Investments (FDIs) by sustaining enabling policies aimed at boosting Public Private Partnerships (PPPs).

Okechukwu Enelamah According to him, another urgent step to be taken by government was a structured collaborative engagements with the private sector to deepen the nation’s diversification efforts to create jobs directly and indirectly and alleviate poverty in the country.

The Vice President who spoke during a presidential dialogue session organised by the Lagos Chamber of Commerce and Industry (LCCI), added: “ These challenges are significant, but the opportunities to get it right are even more significant. For us, the focus is steadfastness and consistency to achieve economic growth.

The government is committed to engaging the private sector in line with what is considered best practices.”

He said the nation’s Gross Domestic Product ( GDP) declined from 6.3 per cent in 2014 to 2.15 per cent in 2015, saying that as at first quarter in 2016, GDP stood at -0.36 per cent.

According to him, the FDI as at first quarter in 2015 stood at $395 million, declined to $175 million in the first quarter of 2016, maintaining that values of equities also declined.

The vice president pointed out that as at May 2016, market capitalisation stood to about $48 billion, down from $84 billion recorded in 2014, while inflation is now about 16.5 per cent.

He said to tackle these challenges, the federal government undertook some specific interventions reflected in the 2016 budget, noting that to safeguard jobs and prevent further increases in unemployment, the present administration priortised attention to assisting states and local governments in paying of salaries of workers.

He added that the deregulation of the downstream petroleum sector was also an important policy decision, stressing that the immediate impact led to the increased availability of Premium Motor Spirit (PMS) throughout the country which he said has been achieved at the price of N145 per litre as against the N200 per litre being paid in most parts of the country prior ro deregulation.

He stressed that the deregulation also led to the reduction of daily demand for PMS from 1600 trucks to 850 trucks per day, saving about N1.4 trillion on subsidy payments thereby conserving budget resources and reducing demand for foreign exchange.

Osinbajo said apart from waiting for the Dangote refinery with a capacity of 650,000 barrels per day, the government is also working on fixing the existing refineries.

“Hopefully, we expect that by the end of

2017, most of the refineries will be functioning to some reasonable capacity,” he said.

He also commended the new flexible exchange rate policy of the Central Bank of Nigeria ( CBN), expressing hopes that the foreign exchange will stabilise, confidence will be restored and increase in the supply of foreign exchange.

Osinbajo noted that the present administration pledged to keep capital spending in the budget at a minimum of 30 per cent, saying that it is a target the federal government is determined to keep because capital spending encourages FDIs. “We have already made capital releases of N332 billion which is more than the entire amount of capital released last year with another N100 billion set to be released in the next few days,” he said.

The Vice President pointed out that the main sectors for which the funds have been released include power, works and housing, defence, transportation and agriculture.

He added that one of the areas the present administration has brought change is in public financial management which has consequential effect of saving jobs, stressing that the ongoing implementation of the Integrated Payroll Personal Information System (IPPIS) is bringing about a monthly savings of N8 billion, while the creation of the efficiency unit in the ministry of finance is projected to save N14 billion in the 2016 fiscal year alone LCCI Comments The president, LCCI, Dr. Nike Akande, in her contribution, stated that the short-term outlook of the economic indicators for Nigeria were not looking bright, saying the major trigger of the economic downturn was the collapse of oil price.

She said the situation calls for adjustments by all stakeholders in the economy, expressing confidence that Nigeria will get over the current recession sooner than later.

She explained that the Nigerian economy had strong fundamentals, stating that “resources are enormous, the domestic market is large and the people are resourceful and enterprising.

Akande however noted that Nigeria needs the right mix of policies to achieve the desired outcomes. She added: “We acknowledge some policy choices the present administration has adopted to promote economic diversification, stabilise the foreign exchange market and ensure sustainable supply of petroleum products.”

27

T H I S D AY • TUESDAY, AUGUST 23, 2016

BUSINESSWORLD

INDUSTRY

SON, Customs Partner to Reduce Inflow of Substandard Products Crusoe Osagie The Standard Organisation of Nigeria (SON) and the Nigeria Customs Service (NCS) have concluded arrangements to fight importation of substandard products into the country.

SON and NCS entered into the collaboration, during the visit of the acting Director General of the organisation, Dr. Paul Angya to the Zonal Coordinator of Zone ‘C’ Port Harcourt, of the Customs,

Assistant Comptroller General of Customs, Azarema Abdulkadir at Area 1, Port Harcourt, Rivers State.

Angya decried the influx of substandard goods in the country and the danger they portended, stressing that people could only live a healthy life, if there were quality goods in circulation.

The SON Director General called for the establishment of system that could support SON to flag red alert to nonconfor-

mity and substandard products in the ports and borders, pointing out that failure to address the upsurge headlong, would be detrimental to the economy of the country.

He said the nation was fighting another form of war, which was substandard products, emphasising that SON would need the support of an institution like the Customs in “fighting the war.”

Angya stated: “Our mandate and what we do is very

important for people living quality and fulfilled life. People can only live a quality life if there are quality goods. Our job affects people’s lives. That is why we need collaboration from the Customs because they are the first point of call on importation.

“Now, is a very challenging time in our history and we must lay emphasis on standards. Which area can we say is removed from the incidences of substandard

EXCHANGING VIEWS

L-R: Executive Director, Finance & Strategy, Sterling Bank Plc, Mr. Abubakar Suleiman; Head of News, Nigeria Television Authority, Mr. Ademola Adeoye and Managing Director and Chief Executive, Cowry Assets Management Limited, Mr. Johnson Chukwu after a live show on NTA in Lagos …recently

NACETEM, MOMTAN Sign MoU on Capacity Devt for Autotechnicians Dele Ogbodo in Abuja The National Centre for Technology Management (NACETEM), an agency under the Ministry of Science and Technology, and the MotorMechs and Technicians of Nigeria (MOMTAN), have signed a Memorandum of Understanding (MoU) for the training of auto technicians across the country.

At the signing ceremony in Abuja, the Director General of NACETEM, Prof. Okechukwu Ukwuoma, said the MoU will bring into fore a cooperative relationship geared towards addressing auto technology challenges that individuals cannot handle. He said: “Today, this agreement will providing the solution and process in which the parties will collectively address that cannot be addressed individually thereby provide the most promising path, to advance capacities and capabilities building and consultancy services in science technology and innovation. According to Ukwuoma, the Centre though based at the University of Ife, Osun State, is an agency of the Federal Ministry of Science and Technology vested with training and development of middle level manpower, policy research in science technology and innovation (STI).

The DG commended MOMTAN for its efforts in the signing ceremony. “I’m happy that today has come and I know that the implementation of the

various training programme for the mechanics will be successful.

“NACETEM is a technology training centre for middle level manpower because we deal with mechanical actions”, he said He said the time has come for the country’s auto sector to embrace digital solution in solving challenges facing repairs of cars, adding: “Today the world is going digital and that is going to be our first module in the training programme.”

According to him, if technicians are not trained, it means they will be left behind because most motors and cars now are going digital and not manual, adding that they will need to know how to use computer to analyze problems in autos.

“So they need education in that area ax they cannot give what they don’t have. Today areas of guess work should be minimized in cars.

“This MoU will also be a joint effort for corporate organisations to come in and also help in sponsorship of their programmes.

Here at NACETEM to do the training and certification for them as this will minimise the use of guess in faulty cars and motors. In his remark, the Chairman of MOMTAN, Sulaiman Oseni, expressed happiness that the MoU will enrich and add value to the capacity of the technicians in auto-engineering.

Oseni said: “We have informed ourselves that we

want the partnership to deal essentially with training of mechanics and technicians.

“We found out that there are people that doesn’t recognise their social responsibility, some recognises it but doesn’t perform it.

“So on the side of government which is NACETEM and the public which is auto mechanics and technicians, we want to partner to begin to demand for this social responsibilities of groups of MDAs to be offered to our members.”

T-Mart Membersihp-Based Shopping Mall Opens in Lagos Shoppers and Store owners in Lagos are in for exciting news as T-Mart Wholesale Store, a renowned membership-based wholesale Shopping mall opened in Lekki area of Lagos on Saturday, August 20th 2016.

This is the first of its kind in Lagos, and will be followed by many more outlets across the major urban Cities in Nigeria over the next few years.

T-MART’s MD, Mr. Berthran Ugeh explained that the company is the first ever membership-based wholesale shopping mall in Nigeria. He added that the store will offer value in the form of best prices and quality they can trust since it gets supplied directly from FMCG manufacturers all over the world.

Ugeh maintained that shoppers now have the option of avoiding trolling shops in the open market on terrible weather days as they can now shop in a controlled environment or have their items delivered to them.

According to him, the opening is supported by Fidelity Bank and the store offers a one-stop shop by providing all household items from packaged foods, beauty and personal care, beverages and snacks, alcoholic and non-alcoholic drinks, soft drinks, hygiene and home care in one place.

The membership types available are: Business Basic, Business Plus, Business Platinum, Individual, Family and Individual Platinum. The benefits, according to Ugeh, include lowest prices, quality, delivery, one-stop shop and many more. T-Mart is a wholly owned subsidiary of Tendy Nigeria Limited, a premier distribution company for the FMCG and Agribusiness sector, founded over 30 years ago.

T-Mart’s increasing and sustainable success, aligned with the anticipation of a market shift will become the face of the wholesale sector in Nigeria.

goods? Substandard products have outrun the economy of the country. They have wrecked havoc on the nation’s economy.

“If we do not sanitise the country of substandard goods, all efforts for diversification of the nation’s economy will fail.

Until we clean up the country of substandard products, our economy has not started. We, as a nation, have not started.

“We are in another type of war. These substandard products are seriously attacking our economy. Until we address the upsurge, we would make no headway”, SON boss lamented.

Angya disclosed that the organisation had shut down the Electronic Professional Clearance Certificate (EPCC) platform, so that people bringing goods into Nigeria conformed to SONCAP regime.

“So, for us to succeed, we need the cooperation of Customs as the landlords of the ports. They are first point of contact, when products land.

So, we need their support, we need their manpower and their expertise. Customs have been assisting us in the past; but, we are asking them to give us more.

The problem is there. It has not gone away. We need additional support from them to be able to curb the influx of substandard products in the

country”, the DG appealed.

Responding, the Zonal Coordinator, Zone C, Port Harcourt, Assistant Comptroller General of Customs, Abdulkadir, noted that the DG of SON touched salient issues affecting the nation, admitting that there was need to work together as government agencies.

Abdulkadir stated: “We share the pains of the blames you are getting. The most important way to control and address it is by collaboration between SON and Customs.

It is our responsibility to assist them in the fight against substandard goods.

“No one organisation can achieve effectively without the cooperation of relevant agencies.

SON has the responsibility of checking importation of substandard products. But, they are not in total control of the movement of the products. That has to do with the Customs, and I believe the essence of the visit is for collaboration.

“We have noted their problems and the NCS is prepared to cooperate with them to fight those challenges. We have been partnering for long; but, fraud is always ahead of control. That is why we are now using ICT to track the areas that encourage fraud and importation of substandard goods,” Abdulkadir stated.

NIM Conference Harps on Entrepreneurship Devt Crusoe Osagie The Nigerian Institute of Management (NIM), Ikeja Chapter’s annual members’ week, which ended at the weekend harped on the need to empower the nation’s teeming unemployed youths with requisite skills to transform into viable businesses.

According to a statement issued to THISDAY by the institute, its annual conference, tagged “Challenges in the Nigerian Economy: Change and the anti-corruption fight”, also targeted developing capacity building and providing a forum for robust exchange of entrepreneurial and managerial ideas to drive entrepreneurship in the country. A youth empowerment and skills acquisition programme where proficient and experienced trainers were present to facilitate and train participants who were both NIM and non-NIM members were featured.

“Nigerians especially the youths took advantage of this opportunity and learnt practical skills which can translate to viable businesses afterwards,” the report stated.

There was also be a business lecture where the theme of the event was exhaustively discussed, at the event that was graced by a seasoned economist and manager per excellence, Dr. Biodun Adedipe, who also doubled as the guest speaker for the forum.

“During the occasion, professional managers reviewed key economic issues and made practical recommendations for

sustainable growth,” NIM said.

NIM further stated that in present times, with growing recognition that fiscal responsibility is the key to individual and national growth, there is need to examine the anti-corruption and change concepts which are hallmarks of the present administration.

“It is opined that everything rises and falls on leadership.

Hence, the essence of leadership was surveyed in the light of recent developments in the country. Professional managers exchanged ideas and proffered pragmatic antidotes to present economic challenges,” NIM added.

The institute added that the role and relevance of professional managers in nation building was discussed intensively, saying no organisation or nation can advance without proper management.

“It is therefore imperative that Nigerian Institute of Management must continually debate on topical economic issues and participate professionally in the sustenance of a stable nation. We thereupon consider the theme for the 2016 NIM Ikeja Members’ Week very apt,” the institute said.

The statement gathered that in addition, the youth empowerment programme was principally to furnish young Nigerians with relevant skills with which to earn a living, noting that rather than perpetually seeking jobs when unemployment rates are soaring, these vocational abilities can be deployed for building successful businesses; hence producing more entrepreneurs.

28

T H I S D AY • TUESDAY, AUGUST 23, 2016

PROPERTY & ENVIRONMENT Prototype of Premiere Apartments The real estate market in Nigeria is not in recession, says Peter Coker, the Managing Director of PREVIS, a special purpose vehicle of James Cubitt Developments. He insists that prospective investors and property up-takers are suspicious of the dubious claims of some developers. Bennett Oghifo reports

T

he Nigerian property market has experienced a slowdown in recent times, obviously because of the cashcrunch in the economy, and this is compelling prospective buyers and investors to take a second look at the proposals shunned out by developers, said the Managing Director of PREVIS, Mr. Peter Coker.

PREVIS is a special purpose vehicle of James Cubitt Developments’ that was formed recently to deliver a quality stock of Real Estate properties to the Nigerian working professional and mid-sized companies, according to Coker.

“The low uptake we are seeing on many properties now is not indicative of slowing demand. People have simply had enough of false developers and their false claims,” Coker said, while introducing the new company.

The situation...

Coker said, “The demand for home ownership in Nigeria far outstrips supply. With the national housing deficit currently pegged at 17,000,000, it is little wonder that developers are springing up everywhere with all sorts of schemes.”

He said given that there is no real barrier to setting up a development company and no agreed standard for what it takes to be a developer in Nigeria, the market is currently highly fragmented, and gets worse as you go from the premium to the mid-market and to low income housing.

“With such a high deficit and no proper guideline for developers, the government is constantly

Premiere Apartments

playing catchup and is not sufficiently staffed to enforce building approvals and standards.

“So many people have lost money and even lives as they have been subjected to various schemes from unseasoned and unprofessional developers.”

He said in recent times, however, reputable construction and development companies have begun to take an interest in the middle income housing market, and are helping to set standards for the delivery of housing to this segment.

“One of such companies is James Cubitt Developments, which recently formed a special purpose vehicle named PREVIS.” He said, “PREVIS is coming to the real estate market with Premiere Apartments and Residences in Lekki and a Builder’s Mall at Ikota, all in Lagos.

“PREVIS is making sense of property ownership by focusing on ease of access to quality lifestyle homes,” said Peter Coker, the Managing Director of PREVIS.

“The number one consideration when acquiring real estate is not how cheap it is but its potential as a store of value. If you build a cheap house that collapses within a year or two, you lose value; if the house is no longer tenantable within five years, you lose both income and value,” he further explained.

“Unfortunately, this is what we have been witnessing in the mid-market.” He said being a member of James Cubitt companies is Nigeria, PREVIS enjoys a heritage of 60 years in Nigerian Real Estate and brings that experience to bear on the home delivery value chain.

The company, he said aims to set new standards of housing delivery, from design to development, fit outs and facility management. Their developments would be offered on flexible payment plans that will disrupt current models in the Nigerian Real Estate Market.

“Our Pay Rent – Own Property product has been called ‘too good to be true’, says Tolulope Olorundero, the Communications and Media Relations Manager for PREVIS Developments.

“The product will help first time home owners to become property owners in well designed and managed estates by simply paying their rent.

People will be in a position to acquire any property in our schemes by paying rent with no large upfront payment requirements and no hidden charges. We are true developers and have no interest in owning the properties and earning rent. We aim to grow fast and become central to the Nigerian real estate story.”

CMB-Vertikal to Combine Speed, Efficiency in Housing Development, Road Construction The Federal Government’s desire to increase the nation’s housing stock significantly within a short time will receive a boost with the entrance of CMB-Vertikal construction company into the nation’s landscape.

CMB-Vertikal is a wholly Nigerian company that evolved recently through very strong partnership between CMB Building Maintenance & Investment Co., Limited and Vertikal Sp. z o.o. Poland.

The new company is set to become the number one construction company in Nigeria, said the Chief Executive Officer, Mr. Kelechukwu Mbagwu in Lagos, recently. He said there was need for collaboration between local and foreign companies for better performance and for capacity building, stating that the days of one-stop-shop housing development companies were over.

Mbagwu said, “We are talking to what the minister wants, which is infrastructural development which will in fact create the enabling environment that we are talking about. And then mass production at speed that is not yet possible with us.”

The new company, he said would have various departments, stating that CMB-Vertikal would take over construction operations from CMB. “CMB-Vertikal will be like our contractors and, of course, they will still get their own jobs. An Oyster Management Company is coming to be; it’s an independent company with its managing director, to handle the entire maintenance portfolio. “So, we won’t be playing that role either; the security arm is Steel Guardian. The parent company, CMB will be able to concentrate on getting the jobs and ensure continued progression.”

On the positioning of CMB-Vertikal in the nation’s construction industry, Mbagwu said, “Pure development will always have placed us within the first three top companies but with increased capacity in construction, our aim is to be number one. Give us a few years of this collaboration, a few years of proving to the Europeans that there is a lot of business, a lot of potential and there is a lot of good to come

out of the partnership in Nigeria; I think we will be number one when the kind of resources that the Polish company has assured us that they have and proven to have is deployed in the country. I don’t think there is an organisation here that can currently match us. What we want to make sure we do is to encourage them to concentrate resources here and then you’ll see an explosion like never before.

“In the next five year, I see us much bigger than Julius Berger. I see us as the biggest in the country and I see us starting to expand our business and, our tentacles going into other African countries.” He said they would engage in road construction because “That’s one of the key things we want to do. Vertikal is truly very strong in that area in Poland.”

He said CMB used to build and sell off-plan but that it would not do so again since “the one-stop-shop has served its purpose; It has been wonderful for us; it has brought us this far; we have delivered a lot but when we view the global problem and especially what has been highlighted in the past two years of economic stagnation, we realised that these baby steps are not going to get us anywhere. If we want to be able to change anything, then we need the kind of capacity that, right now, we just don’t have and that is why we are importing it; you need to develop it yourself or bring it from outside. We realised that developing it ourselves is going to be very tedious and the model that gave birth to CMB growth is getting to be outdated by a proliferation of ‘cowboys’ who have come into the industry. But, we have looked at everything and have seen that it is not quite achieving its purpose.”

He explained that if there was economic downturn like was being experienced in the last two years it could actually go crashing.

Mbagwu said he always tries to be the best at what he does. “If we run CMB as a construction company, can we be the best management company in the business- no, because our concentration will never be total but we have

Mbagwu

capable hands, dedicated professionals, who will take the ball and run, and I believe that those issues could be handled.”

He said he naively believed at the beginning that if people see something good, then they will tap in; the majority will tap in but there’s a determined minority that won’t and will do everything to practically frustrate you. I do not subscribe to conflict between you and your client because it doesn’t help business, but I do subscribe to professionalism and highly focused individuals trying to do what they know best; that’s why we are doing this collaboration.

The Chief Executive Officer of Vertikal Sp. z o.o. Poland, Mr. Blazej Binienda said, “We are very pleased with the cooperation with CMB Nigeria. We are very keen to create a strong, modern company, providing high quality performance, and acting in accordance with

Nigerian, European and international quality standards.”

He said due to the large distances between projects in different parts of the country, they would rely on the use of the latest communication technologies. “We would like to introduce an effective system of organisation in construction, quality management, meet stringent safety conditions and ensure environmental friendliness. Our goal is to create buildings that will be distinguished by attention to quality and durability, so as to get the best product on the market in its price range.

“We believe that the Board of CMB has made a great choice in joining forces with a company from Poland. I have already mentioned that we have the highest skills and quality in Europe, but due to the fact that we are a dynamically developing country, our costs are much lower than in Western Europe, so we can offer very competitive services.” He said, “We’re looking for long term cooperation on the Nigerian market and plan to expand to all of West Africa in the perspective of many years of development.

We know that we can only obtain the highest quality through our employees. We want to carry out technical training, especially in specialized construction techniques for local staff, with whom we aim to share our experience.”

He thanked the Management Board of CMB for their openness to cooperation and development, adding that he would like to see them work together not only in West Africa, but also start working with the Nigerian company in Europe.

Binienda said his company has been present on the construction market since 1982. “We have been active in the design and construction of buildings and infrastructure both in Poland as well as abroad.”

He said over the last thirty years, Poland have seen tremendous changes, both in its political make up and in its development. “Due to the fact that we are a dynamically developing country, in the context of the EU, we are aggressively expanding our infrastructure.

29

T H I S D AY • TUESDAY, AUGUST 23, 2016

PROPERTY & ENVIRONMENT

Lagos Assures Residents on Novare to Open N31.5Bn Shopping Mall in Lagos Flood Control Fadekemi Ajakaiye The Lagos State Government has assured residents that it is doing everything possible to ensure that the reports of flooding in other parts of the country and the adverse weather predictions by the Nigeria Meteorological Agency (NiMET) and the Nigeria Hydrological Service Agency (NIHSA) do not impact negatively on the State.

The Commissioner for the Environment, Dr. Babatunde Adejare stated this during a media briefing on Year 2016 Seasonal Rainfall Predictions and its Socio-Economic Implications for Lagos State at the weekend.

The Nigeria Meteorological Agency and Nigeria Hydrological Service Agency, in their 2016 Annual Flood Outlook released recently had warned that this year’s flooding would be higher than that of 2015. The predictions indicated that coastal cities like Lagos will experience “flooding, sea-level rise and tidal surges.” The Agency named Ogun- Osun as one of the River Basins in the country which will experience flooding, urging the communities in the adjoining plains to keep safe distances.

Adejare disclosed that the predictions of the Agencies are valuable as vital weather and early warning tools for planners, decision makers and operators of the various sectors and businesses that may be impacted by the annual rainfall, if not well managed.

Re-assuring Lagosians on the issue of floods, especially in a coastal area like Lagos, the Commissioner said that it is natural that, “sometimes when it rains, we are likely to have flashfloods on our roads as normal occurrences all over the world. As long as the drains are clean, we should be assured that, in a matter of time, the flash flood will disappear.”

According to him, it is only when flood remains on the roads for days that we can report that the place is flooded.

It must be noted that, anytime the Lagoon level rises, it will “lock up” our drainage channels and until it recedes, there will be no discharge. Occurrences like these also cause backflows, resorting to flooding. But as soon as the Lagoon recedes, all the generated storm water will immediately discharge and our roads will be free.

He disclosed, “The longestablished synergy and partnership with Ogun-Osun River Basin Authority have moderated mutual control and monitoring of the steady and systematic release of water from Oyan and Ikere Gorge Dams by the Authority. This is a mutual relationship which we cherish and we shall continue to sustain. The low-lying Agiliti, Agboyi, Itowolo and Ajegunle communities in Lagos State are also being closely monitored with respect to the likelihood of Ogun River flooding.” The Ogun River is particularly monitored to ensure that the threshold or maximum level of 3.0 m above sea level is not achieved before the alarm of flooding is raised, Adejare said.

Giving the forecast for some parts of the state, the Com-

missioner also revealed that “Forecast for Ikeja, Ikorodu, Ikotun, IyanaIpaja, Kosofe, Marina, Ojo,Oshodi, Somolu, Surulere, Yaba and Lagos Island confirmed that onset date ranges between March 28th April 1st, while the season ending is predicted to range between December 2nd -5th 2016.

Lagos State shall experience a rainy season of 248-253 days; the Maximum Annual Rainfall is predicted to be 1,857mm.”

According to him, the State has since last year embarked on massive clearing and dredging of primary and secondary channels /collectors in the State, expansion of existing drainage channels, in order to contain more storm water, lining of many earth channels, to ensure flow efficiency, strengthening of Resident Engineers/Drainage Maintenance Officers to oversee drainage matters in all our Local Government Areas/LCDA’s across the State and regular Monitoring and oversights of storm water.

Adejare appealed to Lagosians to desist from acts that can lead to flooding, indiscriminate dumping of refuse in unauthorised places, clogging drains with silt or construction materials, erecting structures within and around drainage Right of Way and setbacks. According to him, “Lagosians are advised to report cases of blockages, dumping of waste into canals and other unauthorised places to our Resident Engineers.

The Commissioner revealed that the Motto of government this year is “Sustainability of a flood-free environment,” adding, “Irrespective of the Seasonal Rainfall Prediction (SRP), we are preparing for the worst scenarios. He declared that, with the help of Almighty God and support of our people, no disaster shall visit us in Lagos. And we shall always keep to the promise of reducing incidences of flood to the barest minimum.”

Adejare advised Lagosians who reside along flood plains, coastal and low-lying wetland areas near major rivers e.g.

Ikorodu, Owode, Iwaya, Makoko, Badia, Ijora, Isaalu, Pota, Shibiri etc, to always be on the alert and be ready to relocate, when the need arises. He maintained that government shall, as usual, notify such residents at the appropriate time. He also urged motorists to observe prescribed speed limits during the rainy reason, to avoid loss of lives and property.

The Commissioner remarked that government has ensured that its officials are available to attend to Lagosians. “Our Drainage Engineers will be “on ground” and be available in all our 57 Local Governments and Council Development Areas to attend to all our needs, during and after the rainy season. Their names, phone numbers and email addresses will once again be made available to members of the public, both in the print and electronic media, as well as on the state’s website.”

According to him, ‘complaints can be forwarded to Mr Olufemi Ajenifuja on the Ministry’s emergency lines -09095555580 and 09055555878”.

Fadekemi Ajakaiye Novare Real Estate Africa has said its Novare Lekki mall in Lagos, Nigeria city, is scheduled to open this week.

According to the Chairman of the group, Professor Fabian Ajogwu, SAN, The Novare Lekki Mall is driven by foreign direct investment (FDI) valued at over $83 million (R1.245 billion) that is N31.5Billion, and is funded by a mixture of equity and debt financing. With 22,000 square meters of gross lettable area, it will be the largest mall in Africa’s most populous city.

Interestingly, the Foundation Stone laying ceremony of the Novare Lekki Mall was done by the Honourable Minister of Power, Works and Housing, Mr. Babatunde Raji-Fashola, SAN, while he served as the Governor of Lagos State in October 2014. The Mall is to be officially opened by His Excellency, Mr. Akinwunmi

Ambode, the Governor of Lagos State.

The Centre Manager of the Novare Lekki Mall, Mr. Johan Blom, who represented of the managing director of the Novare Real Estate Africa said, the Mall is a world class shopping complex with state of the art facilities and exquisite architecture built to the highest international standards and set to be one of the largest retail shopping malls in West Africa.

With Shoprite and Game as anchor tenants, the mall has close to 100 shops, including restaurants and five Genesis Deluxe Cinemas, as well as 1,000 parking bays. Other tenants will include Adidas, HealthPlus, Pep, MTN, Tantalizers, Swatch, Levi’s, Spur, Nike and Stanbic IBTC Bank.

Also speaking at the media briefing, Engineer Peter Bamkole, a director of the company, noted that the relevance of this project

Novare shopping mall, Lekki, Lagos

T-Mart Membersihp-based Shopping Mall Opens in Lagos Shoppers and store owners in Lagos are in for exciting news as T-Mart Wholesale Store, a renowned membership-based wholesale Shopping mall opens in Lekki area of Lagos on Saturday, August 20th 2016.

This is the first of its kind in Lagos, and will be followed by many more outlets across the major urban Cities in Nigeria over the next few years.

Mr Berthran Ugeh, T-MART’s Managing Director, explained that the company is the first ever membership-based wholesale shopping mall in Nigeria. He added that the store will offer value in the form of best prices and quality they can trust since it gets supplied directly from FMCG manufacturers all over the world. Ugeh maintained that shoppers now have the option of avoiding trolling shops in the open market on terrible weather

days as they can now shop in a controlled environment or have their items delivered to them.

According to him, the opening is supported by Fidelity Bank and the store offers a one-stop shop by providing all household items from packaged foods, beauty and personal care, beverages and snacks, alcoholic and non-alcoholic drinks, soft drinks, hygiene and home care in one place. The membership types available are: Business Basic, Business Plus, Business Platinum, Individual, Family and Individual Platinum. The benefits, according to Ugeh, include lowest prices, quality, delivery, one-stop shop and many more. T-Mart is a wholly owned subsidiary of Tendy Nigeria Limited, a premier distribution company for the FMCG and Agribusiness sector, founded over 30 years ago.

transcends financial value, from the development stage until the date that it becomes operational, it will empower over 5,000 (Five Thousand Nigerians) with direct and in direct employment.The centre is easily accessible from the Lekki-Epe Expressway and it is expected that many of Novare Lekki’s customers will come from new housing estates in the Lekki Peninsula area.

The primary retail node for the area, the mall is situated near to the Pan Atlantic University, Lagos Business School and Lakowe Lakes Golf and Country Estate.

According to the Managing Director/CEO, Mr. Jan Van Zyl, “That the Novare Lekki Mall is completed on time and within budget is testimony to our team’s ability to successfully undertake retail and commercial property developments in Nigeria and elsewhere in sub-Saharan Africa.

Novare Lekki Mall incorporates the latest elements in modern shopping centre design and aims to provide visitors with state-of-the-art facilities in a user-friendly, safe and pleasant environment.”

Novare Lekki Mall is a development of the Novare Africa Property Funds, which has a mandate to develop and manage modern retail and commercial facilities across sub-Saharan Africa.

Novare Fund Manager manages the Novare Africa Property Fund I and II, domiciled in Mauritius as foreign investors into Nigeria.

Novare Africa Property Fund II, which includes an investment in Novare Lekki, announced its final close at the end of June 2016, having raised $350 million (R5.25 billion) for investment in a portfolio of new developments in, amongst others, Nigeria, Zambia and Mozambique.

30

T H I S D AY • TUESDAY, AUGUST 23, 2016

PROPERTY NEWS

Umahi Suspends LG Commissioner disbands Empowerment Committee Governor of Ebonyi State, Engr.

David Umahi has suspended the Commissioner for Local Government and Chieftaincy Matters/Rural Development, Barr. Samuel Okoronkwo.

Although Umahi did not clearly state the reason for his action, it was learnt it had to do with the lopsided selection of youths in the state for the Industrial Training Fund programme.

It was also gathered that Umahi, who directed that the most senior officer in the ministry should take over from Okoronkwo later on Friday evening asked the

Permanent Secretary, Ministry of Finance, Dr. Ignatius Unah, to take charge. The most senior officer in the Local Government Ministry will consequently assist the permanent secretary.

The governor, who announced the suspension while declaring open the ITF programme in Abakaliki, also disbanded the state’s Committee on Employment.

A statement by the Chief Press Secretary to the Governor, Emma Anya quoted Umahi as saying “The Commissioner for Local Government is hereby suspended from office effective from now. And the highest

office , a civil servant, should take over and be attending Exco until further notice.

“This administration from day one has been built on the principle of justice, equity and fairness. In some of our programmes, we do equality of Local Governments. But in this kind of empowerment, we do equality of wards, so what I expected to see here would have been for them to borrow a leaf from what we are doing to empower abou 3,000 of our women and youths.

“We are doing this and everybody is happy. We are

called to build Ebonyi State where nobody will say I am from North or South or Central. I think we are succeeding.Anybody that is going to take us back to the dark ages will be resisted.”

Umahi however stressed that his administration was poised to develop the capacity of the youth to become self- reliant.

He called on the youth of Ebonyi who are jobless in other parts of the country to return home and find something meaningful to do under his government’s youth-oriented programmes.

His words, “Every Ebonyi youth in other parts of the country especially Lagos should please come back home; we are ready to create jobs for them.

“A day is coming when nobody will be willing to seek political office because of the current reality. One day, there will be no kobo from the Federation Account so it high time we started thinking outside the box.”

The governor said his administration would create over 100,000 jobs for the youth and women especially in the agriculture sector

He said the state now focused mainly on mechanised system of farming because “agriculture without technology is death.”

Governor Umahi however promised the trainees of financial assistance to enable them set up their businesses after acquiring necessary skills from the programme Earlier, the ITF Area Manager (Enugu and Ebonyi states), Mrs Linda Egbonu, said the programme was organised to develop the mindset of the youth in areas of entrepreneurship and skill acquisition.

AfDB’s Corporate, Social ResponsibilityPerformance Improves in 2016 Vigeo Eiris, one of the world’s leading Corporate and Social Responsibility (CSR) rating agencies, has completed its biennial assessment of the African Development Bank (AfDB) and found the Bank’s overall CSR performance as advanced in absolute terms, a one notch upgrade from the previous rating of robust.

Officials of the Bank said in a statement that AfDB was given a score of 63 out of 100 possible points, a 10-point increase from the previous rating, and is ranked third within its peer group, which, since the last rating review, has expanded from eight to 10 multilateral development banks.

The rating and accompanying scores mark a significant improvement in Vigeo Eiris’ assessment of AfDB’s CSR performance, reflecting an ever-increasing focus and attention dedicated to all environmental, social and governance (ESG) related matters at the Bank.

According to Vigeo Eiris, “AfDB displays a homogenous approach

to the management of its ESG impacts, achieving an advanced performance in all three pillars (environment, social and governance).

The institution’s Environmental strategy pillar addresses the material issues related to its business operations, and environmental and climate safeguards are implemented.

As for the Governance pillar, ESG issues appear to be integrated in the governance strategy with material ESG issues discussed at board meetings and the related risks covered by internal controls.

As regards the Social pillar, AfDB discloses extensive measures to foster consultation of Stakeholders in its projects and thematic policies.

In addition, tools have been set up to monitor the achievement of its development goals in its member countries.”

AfDB saw improvements in five out of six CSR categories, including the Environment, Human Rights, Community Involvement, Business Behavior and Corporate Governance.

Ondo Begins Rehabilitation of Township Roads James Sowole in Akure The Ondo State Government, through the State Agency for Road Maintenance and Construction (OSARMCO), has embarked on the rehabilitation of bad portions on 80 township roads in the three senatorial districts of the state.

The Chairman of OSARMCO, Mr. Kehinde Osikoya, who disclosed the plan of government at a strategic take-off meeting with heads of various rehabilitation team, said the decision was taken to address traffic challenges on some roads in the state.

Osikoya explained that all structures and processes have been put in place to ensure that results were achieved from the efforts of government.

The chairman said the agency had earlier carried out repair on 97 roads in the

state, expressing confidence that the current target would also be achieved.

Osinkoya advised the engineers to brace up and deliver the projects as scheduled.

He noted that monitoring and evaluation would be carried out to ensure that jobs were executed to specifications.

He added that the massive rehabilitation efforts would involve minor, major and even special projects, stressing that stakeholders have been put on standby to achieve results.

Also speaking, the General Manager, OSARMCO, Mr. Ayodele Ojo charged the heads of the teams to show more commitment towards the projects, emphasising that the agency was determined to continue to prove that public service institutions could be effective in the execution of government policies.

Julius Berger men rehabilitating Apapa-Ijora Bridge

EHORECON Partners, NBTE on Curriculum Development Determined to move the profession of Environmental Health forward, the Environmental Health Officers Registration Council of Nigeria has embarked on curriculum review for Environmental Health in order to bring it at par with other professions in the country.

Speaking at the opening ceremony of the review meeting of the curriculum for Environmental Health profession in Abuja recently, the Registrar, Environmental Health Officers Registration Council of Nigeria, Mr. Dominic Abonyi stated that the review was necessary to harmonise the curriculum in line with universities and higher technology training, both at the regional and national bodies.

On the benefit the nation stands to derive from this programme, the Registrar opined that the harmonisation was to sharpen environmental health practitioner’s skill and bring them in line with the national purview and guideline of the education Ministry.

He said, “This harmonisation of environmental health curriculum would further enhance our trainability

elsewhere in terms of further educational and professional training.”

Abonyi said at the end of the day, a Technician in Nigeria in environmental health would possess similar skill and competence comparable to another Technician’s in another ministry or industry.

He said the same thing applies to technologies, adding that it was a win-win situation.

“We have closed in on Technician training; we have closed in on University training and on the rest of the professional training. So, Nigeria stands to benefit from a more focused dexterous and result-oriented Environmental Health from this review.”

The Registrar, however, commended the National Board for Technical Education (NBTE) for always being ready to accept the Council since its inception.

Earlier, the Executive Secretary, National Board for Technical Education (NBTE), Dr. Mas’udu Adamu Kazaure expressed the Board’s sincere appreciation to the Environmental Health Officer Registration Council of Nigeria “for spearheading the workshop and for partner-

ing with NBTE towards the Technological advancement of our great nation, Nigeria.”

Mas’udu revealed that curricula on Health, which included that of ND/HND Environmental Health Technology Programmes were developed 18-20 years ago and that with rapid technological advancement they had long become obsolete and required urgent review in order for them to meet the requirements spelt out for that purpose.

The Executive Secretary, who was represented at the event by Director, Monotechnic Programme, Mrs. Helen Oduntan stated that the workshop for Environmental Health Technology programmes marked the commencement of the first step to the Board’s process of Quality Assurance which would follow up with resource inspection and accreditation visit to ensure effective implementation of the curricula.

Plateau Signs MoU with Developer to Build 11,188 Housing Units Seriki Adinoyi in Jos. Plateau state government has signed a Memorandum of Understanding (MOU) with six developers to build 11,188 Housing units for citizens of the state.

The MOU was signed by the Commissioner of Housing and Urban Development in the state, Arch Samuel Galadima on behalf of the state government.

The developer is expected to deliver in 60 months.

Galadima said that this was the beginning of good and people-oriented projects that would happen under the Rescue Administration of Governor Simon Lalong.

He said “Gov Lalong is committed to delivering affordable housing scheme to the people of the state. “ Galadima said that different classes of residential buildings would be developed, assuring that there would be no preferential treatment in allocating the houses.

31

T H I S D AY • TUESDAY, AUGUST 23, 2016

PROPERTY NEWS

The Dynamics of Architecture MontrealProtocol:ViennaTalksPaveWayforAgreement in Contemporary Society on Phasing Down HFCs Charles Maduka Shelter is next to Food, with water, in the order of the basic necessities of life. However, recent classification included sanitation, education and healthcare. According to Wikipedia, ‘The evolution of architecture traces changes in traditions, regions and over-arching stylistic trends and dates. The saying goes that,’ the only thing that is constant in life is change’ is suitable in this context. Architecture is life and it changes in response to the forces of style, technology, economy, beliefs and values. When compared with fashion it is never static but continues to evolve in response to tastes and trends. The famous British contemporary architect, Sir Norman Robert Foster described architecture as an ‘Expression of Value’. Though architecture has a generally accepted description architects and artists had at various times however, used buildings to express their individual values and beliefs. According to Walter Gropius, one of the pioneers of the profession, ‘There is no finality in architecture, only continuous change’.

Furthermore, architecture cuts across borders but varies in the perceptions of designers.

In the year 2012, the prestigious pritzker architecture award was won by a Chinese architect named Wan Shu. He is the

first Chinese citizen to win the award .Wan Shu is arguably the greatest Chinese architect. His style of architecture combines traditional materials with modern design, pushing against the norms of the current Chinese architectural practices.

However, in 2014, a Japanese architect, Shigeru Ban was named the year’s laureate of the Pritzker Architecture Prize.

Though best known for such projects as the Cardboard Cathedral in New Zealand and the Pompidou Metz in France, the world acknowledges his pioneering use of cardboard in disaster relief projects. His cardboard architecture had touched many lives by providing a quick, low cost, recyclable and protective shelter for people who had been displaced. His cardboard architecture option expresses a new dimension in the dynamics of architecture. It also emphasizes the fact that the basic function of architecture is to protect man from the harsh realities of weather. The chairman of the 2014 Pritzker architecture award, Peter Palumbo described Shigeru Ban as a man of profound knowledge of his subject with emphasis on cutting- edge materials and technology, total curiosity and commitment, endless innovation, an infallible eye and an acute sensibility.

Last year, Parties agreed to reach an agreement in 2016 on cutting down hydrofluorocarbons (HFCs), which are the fastest growing greenhouse gases in many countries.

Used as replacements for ozone-depleting substances, HFCs are used in refrigeration, air conditioning, insulation, aerosols, solvents and fire protection products. Successful talks in Vienna could lead to an agreement when the Parties meet in Kigali, Rwanda, in October 2016. Such an agreement will help establish an early, clear and ambitious schedule to phase down HFCs, improve appliance energy efficiency, and quickly arrest warming.

Nearly 178 countries to date have signed the Paris Agreement and 19 have ratified it.

The international community recognises the urgency to take immediate measures to prevent global warming passing the 1.5ºC threshold.

The talks in Vienna will set the stage for an agreement on the amendment to the Montreal Protocol to phasedown HFCs and presents the earliest opportunity for the international community to unite once again on another landmark environmental pact to protect the climate.

A rapid phasedown of HFCs could prevent more than 100 billion tonnes of CO2-e from entering the atmosphere over the next several decades and avoid 0.5°C warming by the end of the century. There are four proposals to the Montreal Protocol to phase down HFCs

(from the North American countries, the European Union, India and the Island States.)

There is strong political will to take these talks forward demonstrated by the several high-level ministers who will be present in Vienna.

In 1987, the Montreal Protocol was formed to address the depletion of the ozone layer from chlorofluorocarbons (CFCs) and other ozone-depleting substances. The success of that agreement, which has put the ozone layer on the path to recovery by 2065, calls for a repeat.

Civil society expectations from this meeting: The talks in Vienna should set the tone for an agreement that will ensure an ambitious phase-down schedule for both

developed and developing countries.

Developed countries need to lead on setting an ambitious phase-down schedule of HFCs so as to commercialise climate-friendly alternatives, make them competitive and build confidence for developing countries to transition.

Developed countries need to provide adequate funding and technology transfer under the Montreal Protocol’s Multilateral Fund to enable developing countries to remain on track with their phase-down schedule.

Additional fast start funding should be made available to developing countries to achieve energy efficiency gains including by improving the design of equipment using alternatives to HFCs.

Maduka, an Architect, writes from Lagos

National Bio-Safety Seeks Collaboration with EHORECON on Pollution Control Fadekemi Ajakaiye Concerned by the growing food poisoning and diseases in the country, the Registrar of the Environmental Health Officers Registration Council of Nigeria (EHORECON), Dominic Abonyi has revealed that Environmental Health Officers will always ensure the pursuit of food safety through non-contamination or pollution.

The Registrar stated this when the Chief Executive Officer of the National Bio-safety Agency paid him a courtesy visit in Abuja, recently.

According to Abonyi, the Council has great interest in bio-technological approach to disease prevention and control, adding that in as much as National Bio-safety could help people in food production and help people in vaccine production also in health, then, “the Council can derive benefit in rolling back all the diseases that are scourging man through environmental insults.”

He opined that the primary mandate of the Council is to determine who could be called an environmental health practitioner and that the Council keeps a register of practitioners and facilitate training and certification of such individuals and also monitors the practice and regulates it for

the betterment of man.

Earlier, the Chief Executive Officer, National Bio-safety Agency, Mr. Rufus Ebegba said theirs was to ensure that the practice of modern bio-technology does not have adverse impact on the conservation and sustainable use of biological diversity.

According to the Bio-safety boss, when looking at the issue of environment “it is to ensure that genetically modified organisms do not become super organism and are not created to distract the environment by applying the ecosystem.”

He explained that the role of the Agency was to regulate and ensure that the law was complied with, to this regard, and by extension, the law and the Act has created an enabling environment for Nigerian scientist to use bio-technology to improve the agricultural sector and also to produce raw materials for industrial purposes. It also enables the medical field to also get novel materials that can be used to enhance the medical field to produce drugs like the insulin, being used for diabetes.

Ebegba, however, revealed that the same process could also be used to develop plants that could be kept to ameliorate the impact of climate change and to also produce plants that could survive in drought-prone areas.

Sales Manager, Julius Berger AFP Furniture Production, Uche Uzoewulu; Head, Public Relations, Julius Berger Nigeria Plc., Moses Duku; Public Relations Julius Berger Nigeria Plc., Martin Affah; and presenter, Abuja Housing Show

OPICAdvisesProspectiveBuyersofLandtoConductChecks Estate practitioners, industrialists and other prospective buyers of landed properties in Ogun State have been advised to always conduct proper checks before committing funds and developing the property.

The Special Adviser/Managing Director, Ogun State Investment Corporation (OPIC), Mr. Babajide Odusolu gave the advice while on an inspection of OPIC Estate, Agbara/Igbesa where massive encroachment were discovered at the boundaries of OPIC’s Estate.

Odusolu said only proper title checks could promote safe, secure, genuine land purchase and building approvals.

The Managing Director ordered OPIC surveyors and managers to regularly conduct inspection patrols and keep surveillance of OPIC lands.

He enjoined staff to be on the alert to promptly prevent encroachment.

In line with this directive, OPIC Management had worked out an efficient supervisory method that would ensure effective security of OPIC investments and opportunities, and also to streamline sales of

OPIC land application forms to members of the public to guard against abuse, illegal allocation and encroachments of diverse nature.

OPIC is thus undertaking ratification exercise on punitive terms alone, he said. “Anyone who genuinely proves to have unwittingly purchased land from illegal land grabbers would be required to ratify such, paying a penal rate of 25% premium on OPIC’s prevailing rates.”

In addition, OPIC is introducing a registry for building material suppliers on its Estates to have proper monitoring.

On the development of illegal structures at OPIC’s Agbara Estate, Odusolu directed the enforcement team of the organisation to embark on a full scale demolition exercise of all structures illegally built on lands in OPIC Estate, Agbara/ Igbesa.

The team had previously marked for demolition, structures built on such illegally acquired lands and others flouting the Corporation’s allocation and planning regulations.

The Managing Director gave

this order during an official tour of OPIC Estate, Agbara/ Igbesa where he inspected area 1 (Jubilee Park/residential area), Areas 2 and 3, and the Agbara – Ijanikin Lagoon link.

He condemned the activities of illegal occupants/ private estates, block making industries and illegal trailer parks, which are considered as serious sources of revenue leakages and economic sabotage in the State. “Purchasing government lands from ‘land grabbers and speculators’ is economic sabotage. One of the cases investigated revealed that a suspect who ought to have paid N400 million to the Government coffers chose to patronize the fraudsters, paying just 10 per cent of what was due to the State.”

He lamented that despite the efforts made via the mass media to warn and educate the public and the ’land grabbers’ to desist from encroaching on government lands they were adamant. He however stressed that victims of illegally acquired land and structures who might be found to have acquired the land unknowingly will be

accommodated on punitive terms but those found to have intentionally opted to defraud the government will be apprehended, and handed over to the law enforcement agents for prosecution.

In another development, occupants who were on the land for one form of economic activity or another had been advised to approach OPIC for registration to avoid confiscation of properties, production materials and eventual prosecution. According to him, those who refuse to register their economic activities, while on the lands would also be treated as economic saboteurs.

Commenting on the activities of these saboteurs, The General Manager, OPIC, Mrs. Ibiyemi Adesoye condemned the activities of the ‘land grabbers’, saying “they would break into the Government land, laying out the land for acquisition and sell at very, very low prices, hoping to do ratification on properties that could have been allocated to genuine buyers who had gone through all the processes of securing the land from the Government.”

32

TUESDAY AUGUST 23, 2016 T H I S D AY

T H I S D AY TUESDAY AUGUST 23, 2016

33

34

TUESDAY AUGUST 23, 2016 T H I S D AY

TUESDAY AUGUST23, 2016 • T H I S D AY

35

INTERNATIONAL

email:foreigndesk@thisdaylive.com

Kerry Seeks Progress in Deploying New UN Troops to South Sudan The United States Secretary of State, John Kerry, said yesterday that he and regional states were committed to giving momentum to the planned deployment of extra United Nations’ troops to South Sudan and said the country’s leaders needed to recommit to a peace deal.

Fierce fighting in the capital, Juba, last month has raised fears that the five-year-old nation could slide back into civil war. It prompted the United Nations to authorize the deployment of 4,000 additional U.N. troops to bolster a U.N. mission there.

“We need to move forward with the deployment of a regional protection force,” Kerry told a news conference in Nairobi after talks with foreign ministers from Kenya and other African states that had focused on South Sudan and Somalia’s reconstruction.

Kerry said regional states, which have pushed for sending the new troops to help South Sudan’s 12,000-strong U.N. mission UNMISS, had agreed on “the immediate implementation process” of meetings and steps to “guarantee some momentum builds up.”

About two years of conflict that pitted troops loyal to President Salva Kiir against those of his former deputy Riek Machar was supposed to have ended with a peace deal last year. But fighting persisted and flared again last month in Juba.

After the latest violence, Machar,

who had returned to the capital in April to resume his post as vice president, withdrew again to the bush and was picked up this month by U.N. peacekeepers in Democratic Republic of Congo with a leg injury.

Kiir has again sacked him and appointed a new vice president.

Kerry said it was up to South Sudan’s leaders, political parties and neighbors to work out “what is best or not best with respect to Machar”, but all sides had to stop fighting.

“We urged all the parties to recommit in word and deed to the full implementation of the peace agreement,” Kerry said.

Kenyan Foreign Minister Amina Mohamed, speaking at the same news conference, said the new U.N. force should be deployed “sooner rather than later” but said it could be sent gradually.

South Sudan’s government initially said it would not cooperate with the new U.N. troops which will be under the command of the 12,000-strong UNMISS mission. But since then it has said it was still considering its position.

“We have not rejected it or accepted it. The sovereignty of the people of South Sudan will be decided by the parliament,” South Sudan’s presidential spokesman Ateny Wek Ateny said.

World powers and regional states have struggled to find leverage over

South Sudan’s warring factions despite U.S. and European sanctions on some military leaders and African threats of punitive actions.

South Sudan secured its independence in 2011, but by December 2013 the longtime political rivalry between Kiir, an ethnic Dinka, and Machar, a Nuer, had led to civil conflict that often followed ethnic lines.

The fighting has killed thousands of people and driven more than 2 million people from their homes, with many of them fleeing to neighboring states.

Kerry, who pledged new humanitarian aid to South Sudan worth $138 million, said the new U.N. troop contingent was “not an intervention force” but would protect civilians and support those working to ensure peace prevailed.

In the latest flare-up in July, Washington was particularly concerned by an attack on a Juba hotel by uniformed men who killed a U.S.-funded journalist and raped civilians, including aid workers.

The U.N. has launched an investigation into accusations U.N. peacekeepers in Juba failed to respond properly to the attack.

South Sudanese government officials say that just because the perpetrators were in uniform did not mean they were either under the command of the government or the opposition

US, South Korea Begin Joint Drills amid Tension The United States and South Korea kicked off annual military exercises yesterday, prompting warnings of retaliation from the North, as already-heightened tension on the peninsula has been inflamed by the defection of a Pyongyang diplomat.

North Korea has become further isolated after a January nuclear test, its fourth, and the launch of a long-range rocket in February brought tightened U.N. Security Council sanctions that Pyongyang defied with several ballistic missile launches.

About 25,000 U.S. troops are joining in the Ulchi Freedom Guardian exercise, which runs until September 2. The U.S.-led U.N. Command Military Armistice Commission said it notified the North Korean army the exercises were “non-provocative” in nature.

The North calls the exercises preparations for invasion, and

early on Monday threatened a pre-emptive nuclear strike.

North Korea frequently makes such threats.

“From this moment, the first-strike combined units of the Korean People’s Army keep themselves fully ready to mount a preemptive retaliatory strike at all enemy attack groups involved in Ulji Freedom Guardian,” a KPA spokesman said in a statement carried by the North’s state-run KCNA news agency.

“The nuclear warmongers should bear in mind that if they show the slightest sign of aggression, it would turn the stronghold of provocation into a heap of ashes through a Korean-style preemptive nuclear strike.”

Last week, South Korea announced that Thae Yong Ho, the North’s deputy ambassador in London, had defected and arrived

in the South with his family, in an embarrassing blow to the regime of North Korean leader Kim Jong Un. High-level defections pointed to cracks in the Kim regime, South Korean President Park Geun-hye said on Monday.

“Recently even North Korea’s elite group is collapsing, followed by key figures defecting to foreign countries, showing a sign of serious cracks, with chances of shaking the regime further,” she told a National Security Council meeting.

Thae’s defection followed the flight to Seoul this year of 12 waitresses from a North Korean restaurant in China.

Also yesterday, North Korea’s Red Cross sent a letter to its South Korean counterpart asking for the women to be sent back, saying they had been kidnapped by the South, according to KCNA. South Korea denies they were kidnapped.

“Russian Use of Iranian Air Base for Syrian Strikes over for Now” Russia has stopped using an Iranian air base for strikes in Syria, Iran’s foreign ministry announced yesterday, bringing an abrupt halt to an unprecedented deployment that was criticized both by the White House and some Iranian lawmakers.

Last week long-range Russian Tupolev-22M3 bombers and Sukhoi-34 fighter bombers used Nojeh air base, near the city of Hamadan, in north-west Iran to launch air strikes against armed groups in Syria.

It was the first time a foreign power used an Iranian base since World War Two. Russia and Iran are both providing crucial military support to President Bashar alAssad against rebels and jihadi fighters in Syria’s five-year-old conflict.

Some Iranian lawmakers called the move a breach of Iran’s constitution which forbids “the establishment of any kind of foreign military base in Iran, even for peaceful purposes”.

Iranian Defence Minister

Hossein Dehghan dismissed that criticism but also chided Moscow for publicizing the move, describing it as showing off and a “betrayal of trust.”

“We have not given any military base to the Russians and they are not here to stay,” Dehghan was quoted as saying by the Fars news agency late on Sunday.

He said there was “no written agreement” between the two countries and the “operational cooperation” was temporary and limited to refueling.

36

TUESDAY AUGUST 23, 2016 T H I S D AY

T H I S D AY TUESDAY AUGUST 23, 2016

37

38

T H I S D AY •TUESDAY, AUGUST 23, 2016

BUSINESS/MONEYGUIDE

FG Wants Increased Islamic Bank Financing for Nigeria, Others Ndubuisi Francis in Abuja The federal government has asked for the scaling up of Islamic Development Bank’s (IDB’s) concessional resource and increased overall financing to Nigeria and other Africa member countries of the bank.

The government said the proposal was in recognition of IDB’s increasing role, and urged it to leverage on its Triple “A” rating to continue mobilising resources from the market for the benefit of member countries.

Speaking at the inauguration of the IDB Country Gateway Office (CGO) in Abuja yesterday, the Minister of Finance, Mrs. Kemi Adeosun, said amid the challenges faced by emerging economies, including Nigeria, are potential and immense opportunities.

“Nigeria looks forward to a stronger engagement anchored in its development aspirations.

The Federal Government of Nigeria under the Muhammadu Buhari administration is working hard to diversify the economy of Nigeria, which has been reflected in the 2016 budget.

“I call on IDB to use its experience in mobilising resources, as it has done in other countries, to support the government in its drive to diversify the economy.

“With the situation in the

Northeast region of Nigeria, I call on the IDB Group to work with development partners in operationalising the Recovery and Peace Building Assessment and the implementation of the recently constituted June 2016 Buhari Plan for the Revitalisation of the Northeast Region.

“This entails addressing aspects of interventions relating to peace building, stability and social cohesion; support critical productive infrastructure and service delivery; and provide capacity building and program management support in national, state and local government institutions, she said Notwithstanding what she described as IDB’s significant contributions in the past, the minister pointed out that Nigeria requires far more resources to enable it address the challenges she outlined. .”It is in this regard that we urge the IDB, along with the Arab Coordination Group and the private sector from IDB member states to lend greater support to Nigeria,” Adeosun said.

Adeosun stated that Nigeria made history when it joined the IDB in June 2005 as the 56th member country, adding that it was making another history by physically setting up an office in the Federal Capital territory, Abuja.

“The inauguration of this office is an important milestone in the relationship between Nigeria and the Islamic Development Bank, for several reasons: It will strengthen the cooperation and the cordial relationship between Nigeria and the IDB Group, “It will bring the IDB Group closer to the people and to appreciate the challenges faced by ordinary Nigerians, and collaborate with the federal government of Nigeria in executing projects that will improve the living standard of our people,” she added.

The minister added that the bank’s presence in Nigeria would add to the pool of development partners with field presence in the country, stressing that the international standing of the bank along with other multilateral development banks can help mobilise additional resources for the development of the country, “I am aware that, the management of the IDB Group agreed to establish a Country Gateway Office (CGO) on the premise that value addition to Nigeria will certainly increase by being close to the member countries. Physical presence and a closer and frequent interaction will also increase the knowledge of IDB Group about the challenges faced by Nigeria.

CBN Reads Riot Act on Utilisation of ‘Free Funds’ Capacity deficit, a major challenge in W’Africa, Says Emefiele Obinna Chima The Central Bank of Nigeria (CBN) yesterday stated that it noticed that some authorised dealers in the FX market have continued to buy and sell FX referred to as “free funds” despite the provision of an earlier circular that warned against that.

Against the background, it stressed that dealing on FX without appropriate documentation, which includes “relevant entries, blotters, physical documents and non-disclosure to the regulatory authorities is a breach of extant regulations.”

The apex regulator therefore reiterated that as provided in the laws and regulations governing dealings in FX, authorised dealers “shall not sell foreign exchange without appropriate documentation and disclosure to the regulatory authorities irrespective of the source of such funds.”

“Accordingly, authorised dealers shall deal in eligible transactions only and not to engage in any foreign exchange

transactions on terms inconsistent with the extant laws and/or regulations,” the CBN stated in a circular posted on its website last night.

Meanwhile, the CBN Governor, Mr. Godwin Emefiele has stressed the need to develop capacity in financial institutions in the West Africa sub-region.

The CBN Governor made this call in a keynote address at the 20th anniversary of the establishment of the West African Institute for Financial and Economic Management (WAIFEM) held in Lagos yesterday. Emefiele, who was represented by the Deputy Governor (Economic Policy), CBN, Dr. Sarah Alade, noted that the dearth of the required capacity in the continent inhibits efforts in implementing strategies and policies as well as in achieving their desired development outcomes.

He cited the Africa Capacity Report 2015, which stated that weak capacity in various dimensions was still a problem in the continent.

“Twenty years after WAIFEM

was established, the mandate remains as relevant as ever.

We must continue to support WAIFEM to remain as relevant as ever. We must continue to support WAIFEM to remain true to the aspirations of the founders.

“Our next step is to ensure that WAIFEM now becomes the training and capacity building institution of ECOWAS. I know the process has started, but we need to fast track it to avail the entire ECOWAS countries opportunity to benefit from WAIFEM’s capacity building programme,” he added.

He described WAIFEM as a foremost institution in the West African sub-region, saying that the status was achieved through the hard work and dedication of its management and staff.

“It is gratifying to note that through several independent evaluations commissioned by donors, the board and other partners, WAIFEM’s programmes have been found to be effective, efficient and relevant to social and economic development in Africa,” he added.

StanChart Cuts African Private Equity Team as Economies Struggle Nume Ekeghe with agency report The head of Standard Chartered’s African fund, which has $800 million invested, is set to leave the bank as it trims its private equity team on the continent, its global head of private equity said on Monday.

Peter Baird, who was appointed in 2011 and has 20 years experience in private equity and investment banking, will be replaced by Ronald Tamale, a former Goldman Sachs analyst, CEO of Standard Chartered

Private Equity Joe Stevens told Reuters. Baird declined to comment. It was not clear if he quit or was removed.

African economies have struggled over the last year with lower commodity prices, rising government debt and weakening currencies.

Many of Standard Chartered’s investments are in Nigeria, where subdued oil prices have pushed Africa’s biggest economy to the brink of recession and banks have wrestled with acute foreign exchange shortages.

Head of Standard Chartered’s West Africa private equity business, Yemi Osindero, is also leaving the bank, along with his colleague Nana Dankwa, to start an independent African fund, a Standard Chartered private equity source told Reuters.

Stevens said there would now be eight Africa specialists working on its private equity business.

However, two private equity sources close to Standard Chartered’s fund said there would be five staff working directly on the Africa private equity team.

Adeosun

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 - 14%

OPEC DAILY BASKET PRICE AS AT FRIDAY 19, AUGUST 2016 The price of OPEC basket of fourteen crudes stood at $46.82 a barrel on Friday, compared with $46.50 the previous day, according to OPEC Secretariat calculations.

The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela) SOURCE: OPEC headquarters, Vienna

T H I S D AY •TUESDAY, AUGUST 23, 2016

39

MARKET NEWS

Investors Gain N56 Billion as Market Sustains Bullish Trend Goddy Egene and Nosa Alekhuogie Trading at the stock market resumed on a positive note yesterday as the bulls sustained their hold on the market. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 0.58 per cent to close at 27,812.06. Similarly, the market capitalisation added

N55.5billion to close higher at N9.55 trillion.

The market had rebounded last week on bargaining hunting and reactions to the impressive results declared by Guaranty Trust Bank Plc and Access Bank Plc for the half year ended June 30, 2016.

And yesterday’s bullish session was partly influenced by continued positive sentiments by investors in the banking

stocks. The NSE Banking Index appreciated by 1.28 per cent, lifted by gains recorded

by Access Bank (+4.6 per cent) and GTBank (+1.58 per cent).

Apart from recording improved performance both banks announced interim dividend of 25 kobo apiece for H1.

GTBank grew its profit before tax (PBT) by 45 per cent from N63.1 billion to N91.38 billion, while Access Bank Plc’s PBT

rose by 28 per cent from N39 billion to N50 billion.

Commenting on the results, the Managing Director/Chief Executive Officer of GTBank Segun Agbaje, said: “Going into the year, we knew it would be a challenging year and we prepared for it by focusing on effective management of the balance sheet and adapting our business model to changing market variables. The quality

of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period.”

On his part, the Group Managing Director/Chief Executive Officer of Access Bank, Mr. Herbert Wigwe said: the performance continues to be resilient in the face of a challenging macroeconomic environment, which has been further exacerbated by

double-digit inflation, amidst an untimely devaluation.

“The results underscore our continued ability to grow sustainably whilst effectively adapting to a challenging operating landscape.”

He explained that during the period, the bank grew its retail market share, leveraging innovation and technology to create lifestyle products and enhance customer experience.

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

40

TUESDAY AUGUST 23, 2016 T H I S D AY

T H I S D AY TUESDAY AUGUST 23, 2016

41

42

TUESDAY AUGUST 23, 2016 T H I S D AY

TUESDAY AUGUST 23, 2016 • T H I S D AY

43

NEWSEXTRA

Power: TCN Rolls out $7.5bn Five-year Network Upgrade Plan Says distribution is sector’s weakest link Manitoba’s four years contract cost govt $34m Chineme Okafor in Abuja The Transmission Company of Nigeria (TCN) yesterday rolled out plans for the implementation of a five-year upgrade of Nigeria’s electricity transmission network from its present 5,500 megawatts (MW) wheeling capacity to 11,500MW by 2020.

TCN disclosed that the five -year plan would cost it $7.5 billion, adding that the huge funding will be sourced mainly from a mix of the federal government’s annual budgetary appropriation to it, concessionary loans and grants from multilateral financial

and aids institutions as well as contractor-financing model.The acting Managing Director of TCN, Abubakar Tambuwal Atiku, disclosed this to journalists at a press briefing in Abuja.

He was supported by TCN’s Executive Director, Finance and Accounts, Mr. Sonny Iroche; its Executive Director, System Operations, Musa Gumel, and Tom Uwah who manages the Transmission Service Provider (TSP) department at the briefing.

The four had recently taken over the management of the company after government ended its business relationship with Canadian

NHRC Asks NLC to Suspend Nasarawa Rally Tobi Soniyi in Abuja The National Human Rights Commission (NHRC) has issued an advisory calling the Nigerian Labour Congress (NLC) to suspend its planned to protest the shooting and killing of some Nasarawa State workers by police in the course of meeting with the Governor of Nasarawa State.

The commission, in the advisory also called on the Nasarawa State Government to suspend forthwith the implementation of the reduction in the workers’ salary pending the completion of the investigation of the complaints already submitted to the commission.

NHRC said it issued the advisory in line with its responsibilities conferred on it under Section 5(o) of the NHRC Act, 1995 (as amended), which empowers the commission to “on its own initiative…. report on actions that should be taken by the federal, state or local government to comply with the provisions of any relevant international human rights instruments.”

The commission said it received a complaint dated August 3 from the office of the president of the NLC alleging shooting and killing of some Nasarawa State workers by police in the course of meeting

with the Governor of Nasarawa State.

It also said investigation into the complaint was on going and advised both the NLC and the Nasarawa State Government to maintain the status quo pending the completion of the investigation.

The commission said it had come to its notice that NLC planned to hold a rally in Lafia, the Nasarawa State capital and other places to protest against the Nasarawa State Government on the August 23, 2016.

Although, the commission admitted that the right to assemble freely and to protest or demonstrate peacefully was a human right guaranteed by Sections 39-40 of the 1999 Constitution and Articles 9-11 of the African charter on Human and Peoples’ Rights, which is domestic law in Nigeria, it nevertheless asked NLC to suspend the rally.

It said: “Whereas there is need to forestall a recurrence of such incident during the planned rally which, though well within the right of the organised labour (and indeed any other citizen at that) to hold or participate in, could still go awry when members of the congress participating in the rally becomes uncontrollable, or are infiltrated by other elements with ulterior motives.

Adelabu ‘Penkelemesi’ House Turned to Monument in Ibadan Ademola Babalola in Ibadan The house of the late Ibadan politician, Sir Adegoke Adelabu (a.k.a. Penkelemesi, a slogan in Yoruba parlance meaning ‘peculiar mess’), has been turned to a monument named ‘African Centre of Intellectualism.’

The Chairman of the Adegoke Adelabu Foundation, Lekan Alabi, disclosed this yesterday while addressing journalists in Ibadan, saying that the one-storey building located at Oke Oluokun area of Ibadan, the Oyo State capital, would be unveiled on September 3 to mark the late politician’s posthumous 101st birthday.

Alabi said the house, originally named ‘Taj Mahal’ by the late politician, is being remodelled to serve as a monument for tourists, researchers and other users seeking enrichment of knowledge and preservation of Adelabu’s ideals.

He added that the house has the potential of becoming a world tourist destination for the learning of Adelabu’s great ideas and ideals.

The Secretary of the Adegoke Adelabu Foundation, Mr Yinka Adelabu, while reviewing his book, Africa in Evolution, a book on the late politician’s political thoughts, said the ideas are still practical solutions to the problems Nigeria is facing today.

The two-part book, contains the late politician’s thoughts on how Nigeria can gain independence, educational development, economic planning, agriculture as well as unity among the ethnic groups, among others.

Adelabu was born on September 3, 1915. He became the first indigenous manager at the United African Company (UAC) at the age of 21 years. He later went into politics and became one of Nigeria’s most colourful politicians.

Manitoba Hydro International which managed TCN for four years on a contractual basis.

Atiku also said out of the N50 billion the company requested from the government in the 2016 budget, N30 billion was approved for it while N9 billion has been allocated so far, but it is still not within its account.

“We hope to increase our capacity to 7500MW with the completion of 31 projects by the end of 2017; TCN has mapped out strategies to boost its capacity to 8200MW by the end of 2018, this we intend to achieve with the completion of eight new projects in 2018.

“In the realisation of 10,000MW as envisaged in 2019, our five-year expansion plan has 66 projects to be completed, leading to a total wheeling capacity of 11,500MW by 2019. The plan has also been carefully developed with the aim of realising stable power supply by 2020,” said Atiku.

He gave a breakdown of how the company hopes to raise funds for this, saying: “The ongoing and new projects cannot be realised without

adequate financial resources; TCN therefore anticipates that the federal government, as the sole owner of the company, will facilitate funding of the various projects.

“Apart from the government appropriation, TCN is also supported through funding agencies like AfDB, ADB, World Bank and special funds from the Eurobond, China-Exim Bank and JICA. “Expected funding in terms of concessionary loans and grants from these agencies is put at $3.4 billion; federal government is expected to bring in about $1.5 billion for the five year period, while the proposed investor-financing initiatives by TCN is expected to contribute about $2.6 billion, this makes an estimated total funding requirement of $7.5 billion for the five-year expansion plan.”

Atiku said the TCN had moved away from its past history of incompetence and was focused on ensuring that there is no stranded power from the generation companies. He added that going forward; stability of the grid would be guaranteed without system collapse under all circumstances.

“We intend to achieve this by

changing our operational ways of conducting business along two major business practices of Transmission Service Provider and Independent System Operator. These two entities are to be empowered financially and administratively to deliver on our mandate.

“TSP is to focus on expansion and upgrade of TCN assets; ISO will provide the interface between the power generators and distributors by ensuring optimum dispatch of electricity. It will also be responsible for overseeing the market operations,” he noted.

While responding to questions about the integrity and capacity of his team, Atiku said they were carefully selected in 2012 to understudy Manitoba and are now equal to the task of managing TCN in a cost efficient manner.

According to him, “My management team has the support of the entire workforce of the TCN who shares the belief that only Nigerians can make Nigeria great, not foreign expatriates whose interest is their gains.”

He stated that all outstanding

contracts entered with Manitoba for TCN by stakeholders would remain valid and enforced in line with agreed contractual obligations.

The TUC boss also disclosed that the government in its four years engagement of Manitoba, committed $34 million to the contract. He explained that concessionary loans offered to TCN by the likes of the World Bank were still intact and not withdrawn. He equally took a swipe at stakeholders in the country’s power sector who have labeled it as the weakest link in the value chain, saying it was the electricity distribution companies (Discos) and not TCN that is the sector’s weakest link.

“We don’t share the belief that we are the weakest link. So far, we have been able to take generated power to the Discos which still reject powers and load-shed their customers.

“Load rejection is still happening and the Discos know that. We know those that still reject loads because the System Operator monitors on a 24 hour basis, and we can tell the Disco that does that,” he said to buttress his claims.

CASSON CONFERENCE

L-R: Wife of the Governor of Ogun State, Mrs. Olufunso Amosun; wife of the former Governor of Lagos State, Senator Oluremi Tinubu; and former Vice Chancellor,UniversityofLagos,Prof.OyeIbidapo-Obe,attheCASSON41stinternationalconferenceattheuniversity....yesterday

Ondo Guber Poll: Ex-Attorney General, Jegede, Emerges PDP Candidate James Sowole in Akure The immediate past AttorneyGeneral and Commissioner for Justice of Ondo State, Mr. Eyitayo Jegede (SAN), was yesterday elected as the Peoples Democratic Party (PDP) candidate for the November 26 gubernatorial election in the state.

Jegede scored 760 votes to defeat his only opponent, Hon. Saka Lawal, who scored 22 votes.

The primary election held amidst tight security at the state International Event Centre, The Dome, Akure, was supervised by a team from the PDP National Secretariat led by the Governor of Bayelsa State, Mr. Seriake Dickson.

The primary was perceived by some people as the first round of the exercise by the party ahead of the gubernatorial election as the Ali Modu Sheriff faction of party has scheduled its own primary exercise

for next week.

Though, 840 delegates made up of 609 elected ad hoc delegates of three from each of the 203 wards, 29 state executive council and other automatic delegates from the 18 local government areas of the state were expected to vote, 782 votes were cast. The primary election was supervised by a team of the Independent National Electoral Commission (INEC) led by the Administrative Secretary, Kabir Omosanya.

All officials and stakeholders described the exercise as free, fair and credible and in line with the Electoral Act. In an interview, the INEC Administrative Secretary said the exercise conformed with the laid down rules of the exercise.

Omosanya said the commission did not receive any injunction barring it from supervising the primary.

He said there was no directive yet from the INEC headquarters for them to monitor another gubernatorial primary for the party in the state.

In his acceptance speech, the PDP candidate, Jegede, said there was no winner and no loser in the exercise, saying they were all members of the same family. Jegede promised to open the door for genuine reconciliation with aggrieved members of the party.

The candidate said Mimiko had laid good foundation for him to build on, adding that the job had just started.

Also speaking, the runners up, Saka Lawal, promised to join hands with Jegede to ensure that the PDP wins the November 26 election.

While commending the delegates for their behaviour, Lawal said he would not leave the party for any other party adding that winning the

November election is the ultimate.

The Chairman of the Electoral Committee, Seriake Dickson commended the delegates for being orderly and peaceful throughout the period that the exercise lasted.

Dickson expressed hope that the people of the state would repeat what happened in Bayelsa State in Ondo State during the forthcoming election by mobilising electorate to vote for the PDP. In his closing remark, the state Governor, Dr. Olusegun Mimiko, said the end of the primary election was the beginning of the real work.

Mimiko said the primary was the beginning of the road to the PDP’s victory for the November election urging all members to go back home and work for the party.

“Go back to your neighbourhood, go to your local governments and go to your wards and preach Jegede and PDP to them,” he said.

44

TUESDAY AUGUST 23, 2016 • T H I S D AY

NEWSEXTRA

100 INEC Staff under EFCC Probe, Says Yakubu

Onyebuchi Ezigbo in Abuja

The Chairman of the Independent National Electoral Commission (INEC), Professor Mahmood Yakubu, has said about one hundred staff of the commission are currently undergoing interrogation by the Economic and Financial Crimes Commission (EFCC)

for electoral offences.

He said based on investigation, the number of the commission’s staff facing interrogation has kept increasing by the day.

In a statement issued by the commission yesterday, Yakubu said the electoral body is cooperating with the EFCC, adding that any staff found culpable would be sacked from

FG Insists All Teachers Must Pass Professional Qualifying Examinations

the service of the commission.

“So far, over 100 staff of the INEC have been invited by the EFCC. At a point, we toyed with idea of speaking to the EFCC to see the weight of the evidence they have so that we can take administrative action against our staff but they are innocent until they are proven guilty. They have to be charged to the court but we have taken notice and we have a complete list,” he said.

The INEC chair was said to have disclosed this during his visit to the offices of four media houses in Lagos.

Yakubu called for the

establishment of the Electoral Offences Commission and Tribunal as prescribed by the Justice Mohammed Uwais and Ahmed Lemu Commissions, noted that inconclusive elections were brought about largely by violence.

He noted that the only way to put to rest this spectre of violence that continues to haunt Nigeria’s elections was to put in place a mechanism that will punish offenders, arguing that “there are people who believe that they can do anything and get away with it.”

Yakubu also spoke of moves by the commission to get the

federal government to appoint the remaining six national commissioners into the INEC’s board.

He expressed optimism that following representations made by the commission to the presidency, the outstanding six National Commissioners and 21 Resident Electoral Commissioners (RECs) would soon be appointed to replace those whose tenures have lapsed. He stressed that the prerogative of nominating or appointing the commissioners was that of the president.

On the specter of inconclusive elections in the country, Yakubu

said these were caused by violence and over voting, adding that the situation Yakubu were also being compounded by the recent evolution of two strong parties as opposed to the past where we had one mega party and smaller ones.

He traced the history of inconclusive elections to the 1979 presidential election and observed however, that inconclusive elections were not strange to our laws while emphasising that the commission under his watch was irrevocably determined to ensure that each vote counted.

PhD holders, professors also Paul Obi in Abuja The federal government yesterday said all teachers in the country must henceforth pass the Professional Qualifying Examination (PQE) before they can engage in teaching in any level of education in the country.

The move came on the heels of the federal government’ s decision to standardise the quality of teaching across all strata of education in Nigeria.

The Registrar and Chief Executive Officer (CEO), Teachers Registration Council of Nigeria (TRCN), Prof. Josiah Ajiboye, stated this in Abuja ahead of government’s plan to reform the teaching profession across board.

According to Ajiboye, the aim is to weed out quacks in the profession and as enthrone global standards.

He informed journalists that already, “the PQE was one of the main items captured in the TRCN 2016 budget. We can then have centres across the country in a controlled place and take the PQE. “Talking about PQE, do permit me to assure Nigerians that the council has put in place all that is needed for the successful re-introduction of professional qualifying examinations for teachers across the country.

“TRCN commenced the implementation of PQE for teachers in Nigeria in 2008 but halted the process in order to develop modules that are time-

tested and have the potential to withstand standardisation,” the new TRCN registrar said.

Ajiboye, while insisting that all teachers, including PhD holders and professors are expected to sit for the PQE, explained that “the PQE modules have been developed and test run on sample groups to ascertain the validity and authenticity of the test constructs.

“It serves as one of the best tools for assessing, admitting and licencing practitioners in any profession. This was confirmed by the maiden edition of the examination which revealed a lot about the professional deficiencies of the Nigerian teacher.

“It showed that majority of Nigerian teachers are outdated in their pedagogical skills and techniques. As such, it became evident that they needed urgent on-the-job training for necessary updates,” Ajiboye stated.

Also, TRCN Director of Professional Operations, Ibrahim Roni, maintained that the PQE is compulsory for all level of teachers in the country.

Roni told journalists that given that the examination would be mandatory to all teachers, once the examination kick start, it will be an offence to teach in the country with passing the PQE. He further stated that the council is expected to conduct the first set of the examination in December this year, while full implementation commence early next year.

Building Collapses in KanoVarsity, Five Persons Injured Ibrahim Shuaibu in Kano The Vice Chancellor of the Kano State University of Science and Technology (KUST) Wudil, Professor Shehu Alhaji Musa, has denied media reports that 20 person died when a building collapsed in the university.

He confirmed that only five persons sustained injuries in the incident.

“I can confirmed to you that no life was lost and only five persons who are not even students of the university sustained injuries.”

Addressing journalists in Kano yesterday, the vice chancellor said: “We have not recorded a single death causality in the incident, the university mobilised all its organs, including security operatives, to ensure the excavation of the

collapsed building.”

Shehu added: “It is part of the building that collapsed; as acknowledged that the building has problems and a committee have been setup to investigate.

He promised that the excavation was ongoing to ascertain what is there after the collapsed, adding that soon the excavation would be over. The vice-chancellor said no student of the university was involved in the incident, stating that those injured were workers at the project site.

However, an eyewitness told THISDAY that the building collapsed when workers were undergoing their routine works.

“We were standing nearby the building when we heard a loud sound. We later realised that it was a building that collapsed, he said.

SEEKING COOPERATION

Acting Managing Director/CEO, NEXIM Bank, Mr. Bashir M. Wali (left), and Bauchi State Governor, Alhaji Mohammed Abdullahi Abubakar, during a courtesy visit to the governor at the State Liaison Office in Abuja...yesterday

Anti-graft War Not Targeted at Opposition, FG Insists Igini wants govt to tackle economic problems Ernest Chinwo in Port Harcourt The federal government has said the current fight against corruption was not targeted at the main opposition party, the Peoples Democratic Party (PDP), as being peddled in some quarters.

This is as a former Resident Electoral Commissioner (REC) of Edo State, Mr. Mike Igini, called on the federal government to tackle the economic problems facing the country while fighting corruption.

The Attorney General of the Federation (AGF) and Minister of Justice, Mr. Abubakar Malami, said as far as the administration of President Muhammadu Buhari was concerned, there was no sacred cow in the anti-graft campaign.

Malami, who spoke yesterday in Port Harcourt at the ongoing 56th annual conference of the Nigerian Bar Association (NBA) with the theme ‘Democracy and Economic Development,’ said the federal government would not spare anybody suspected to be corrupt.

The minister pointed out that the fight against corruption was not targeted at any particular political party, adding that

nobody would be spared if found to be corrupt.

He stated that for anybody to be investigated and arrested, there must be a reasonable ground for suspicion of the commission of an offence bothering on corruption.

The AGF said: “On the issue of being lopsided in the fight against corruption, I think the question should be that is there any reasonable ground for suspicion of the commission of an offence. It is not about whether they (offenders) are PDP or APC. “As lawyers, you have at your disposal the Freedom of Information Act and the right to seek support for the prosecution of those suspected to have committed any offence.”

Malami also disclosed that the government was investigating some top civil servants suspected to be involved in corrupt practices.

He pointed out plans were underway for the amendment of the Electoral Act and added that a committee would soon be established to achieve the purpose.

Meanwhile, a former Edo State, REC, Mr. Mike Igini, has lamented the level of poverty in the country, and urged the

federal government to tackle the economic problems facing the country while fighting corruption.

Explaining that those elected into public office have only a year and five months to fulfill their promises to the electorate, Igini maintained that it will be difficult for elected office holders to achieve anything at the end of 2017.

According to him, “The belief and faith in democracy is on what it can achieve. All those elected into public offices have only one year, five months to perform. The truth is that 2018 is a campaign year while 2019 is for elections.

“So, they have till 2017 to fulfill their electoral promises.

Consequently, looking at what is available, one should look at the law and see how we can tackle our economic problems while also fighting corruption.”

In his remarks, a human right activist, Mr. Ken Asuwete, called on the federal government to address cases of human right abuses in the country.

Asuwete explained that the change mantra of the federal government should not be limited to only the recovery of stolen funds, adding that other area should be explored for government to fulfill its electoral promises to the people.

Tribune Editor, Ayanniyi Loses Mom The family of Mrs. Modupe Abiodun Ayanniyi, nee Oloko yesterday announced her demise. Aged 79, Ayanniyi died on Sunday, July 31, 2016. She would be buried September 30, 2016 at St. Davids Church, Kudeti, Ibadan Oyo State.

She is survived by children and grandchildren among whom is the Associate Editor, News, Nigerian

Tribune, Itinu Ayanniyi

Ayanniyi

TUESDAY AUGUST 23, 2016 • T H I S D AY

45

NEWSEXTRA

Edo Guber: Ize-Iyamu Raises the Alarm over Illegal Detention of PDP Members Davidson Iriekpen The Edo State Peoples Democratic Party (PDP) governorship candidate, Pastor Osagie Ize-Iyamu, has alerted the international community and the civil society groups on the use of the state Ministry of Justices and the security agencies to intimidate, harass and detain members of the party ahead of the September 10 governorship election.

He also warned against the rigging of the election, insisting that the consequence of manipulating the election in favour of the All Progressives Congress (APC) would be too grave to manage.

Ize-Iyamu stated this during his interactive session with members of the civil society coalition in Benin-City, the Edo State capital weekend. ‘’The worst is happening now in Edo State; the APC is using the state Ministry of Justice to oppress, intimidate and detain our people. I don’t know whether many of you know what played out recently in Ovia East Local Government Area? The trend has become very alarming,’’ the PDP candidate stated.

“Our boys are provoked by

thugs and miscreants of the APC and before you know it, the same thugs will invite the police and innocent people are arrested; they are denied bail and when the agitation for bail becomes very pronounced, the policemen will wash their hands off because they know there is nothing in it. They will say it is assault, and disturbance of peace. ‘’And as they get to the Magistrate Court, the Ministry of Justice will step in and say it is interested, And on their own, they will change the charge sheet and say the case is attempted murder - just to ensure that the Magistrate Court has no jurisdiction over the matter and the Magistrate Court has no option than to say since I have no jurisdiction, I detain you until the Director of Public Prosecution decides to handle the matter.’’

The candidate said many innocent PDP members are current languishing in many police stations, especially the Sapele Road Police Station, saying that their offence is because they were attacked by APC’s thugs, and later arrested by the police, while pasting posters.

He added: ‘’Funny enough, the youths are now in detention

because the Commissioner for Justice has decided to misuse his office by telling the police to put charges on the innocent PDP members, knowing that the Magistrate Court that has no jurisdiction, they will be forced to detain the innocent people.’’

Advising the international community and the civil society groups to speak out now, IzeIyamu reminded them that an injury to one is an injury to all, saying if the situation is allowed to continue, it would amount to inviting anarchy.

He said if the situation is not immediately checked, it would get to a stage where members of the PDP will no longer respect the police, and the people would begin to protect themselves.

Pastor Ize-Iyamu added: “I want to appeal to the international community and leaders of the

civil society group to call the Edo State government to order. The APC today came in when the PDP was in government at the federal level. If former President Goodluck Jonathan had decided to use INEC, police and other security agencies, I am sure the story will be different today. ‘’The Edo State Broadcasting Service, under the regulation of the National Broadcasting Commission (NBC) has a right to report me as a candidate in this election. But it has never done so.

The Nigeria Television Authority (NTA) on its own wrote me a letter, assigning a crew to me, because it is a regulation under the NBC.’’ Ize-Iyamu condemned the unprofessional conduct of the EBS, adding that the moment candidates emerge, all the candidates must be given

adequate coverage in line with the regulation of NBC. ‘’The EBS knows it, and the management wanted to do the right thing, but they are afraid.

Even when they carry my advert - jingo, they are called to Government House and warned never to try it again. It is that bad,’’ he further stated. ‘’Many civil servants call me in the middle of the night because they are afraid; even when by chance they meet me in public functions, it could get them dismissed from the public offices. What kind of state are we living in? Are we in a state of war? That people who got to power -- through our mandate have become despots, using the state apparatus to intimidate and oppress our people? ‘’I appeal to you to take a

walk to prisons and you will be amazed at the number of political prisoners that are there.

And they are boasting they will do more. And those who were arrested in Ovia North East and detained were told they could be released if only they will defect to APC, and the young boys said they will not, and so they are still in detention till today.’’

The PDP governorship candidate appealed to the international community and the civil society groups to rise up to the challenges, insisting that members of PDP are not weak but love peace because war is expensive. ‘’This election cannot be rigged.

We will defend our votes and our people’s mandate with our blood. And those who want to kill let them kill, but life/death is not in their hands,’’ he stated.

Firm Refutes Alleged Probe by EFCC A firm, NIX Technologies Limited, has refuted an allegation that it is being investigated along side former Governor of Plateau State, Jonah Jang, by the Economic and Financial Crimes Commission (EFCC) over alleged missing funds.

In a letter written by its solicitors, C.A Eiechie and Co., the firm claimed that contrary to a recent publication with the headline ‘EFCC Probe Jang over Alleged Missing Funds’, it was never involved in such missing funds or being probed

by EFCC. The which was signed by Christopher A Eichie, stated that the allegation was incorrect and meant to embarrass the firm.

“We wish to state categorically that all the allegations raised by your

reporter on the same publication are false and we aver that our client is not under investigation by the EFCC or any other security agency for that matter; our client was never paid twice for the same contract by the Plateau State Governor, past or present; our client was not a front company for the former Plateau State Governor “We also wish to inform you that since the said publication, the phones in our client’s corporate office have not known moments of respite, as people in Nigeria and abroad have been calling to know the veracity of the very damaging allegations. Our client is greatly disturbed by your said publication as it is bound to affect negatively its hard-earned corporate image.”

Gowon, Ajimobi Call for Attitudinal Change for Nigeria Former military head of state, General Yakubu Gowon (rtd) has said Nigeria should be restructured but not along ethnic or regional divides but as one indivisible entity.

Gowon who is also the convener of Nigeria Prays told Channels Television after the inter denominational prayer session, that he would not support any call to break away nor will he subscribe to any state or region given prominence at the detriment of other states or the country.

The elder statesmen added that the programme, Nigeria prays, is aimed at promoting unity and peace through fervent and result oriented prayers for the transformation of the nation and promotion of patriotism, transparency and responsible

governance.

In his remarks Governor Abiola Ajimobi who lauded the initiative urged Nigerians to walk the talk by demonstrating commitment and integrity in all they do.

He further noted that Nigeria is a praying nation but it was time the people start acting in tandem with prayers if change is desirous.

Gowon expressed confidence that all the problems facing Nigeria could be surmounted with prayers and hard work, adding that the country must be restructured but only as one indivisible entity where all states are strengthened to perform optimally.

All the ethnic groups in the country were represented at the event and prayers were offered for President Muhammadu Buhari and all political office holders in the country.

SIGNED AND SEALED

Cross River State Governor, Prof Ben Ayade (left), shortly after signing a Memorandum of Understanding (MoU) on Power and Education with a Dubai-based firm, Skipper Seil, represented by its President, Mr. Jitender Sachdeva, in Calabar....Sunday

Group Commends Immigration Boss for Structuring NIS

Gates: We Need Great Partnership with Nigerian Govt to Fight Polio

Sunday Okobi

Paul Obi in Abuja with agency reports

As President Muhammed Buhari intensifies the anti-corruption fight in the country’s public service, the Comptroller General of Nigerian Immigration Service (NIS), Muhammed Babandede, has been highly commended for establishing tough measures, standards and benchmarks to curtail corruption in the service.

The commendation was contained in a statement issued by the president of the Coalition of Civil Society and Media Executives for Policy Stability (COCMEP), Innocent Ebirim Okadigbo, in Abuja.

Ebirim, in the statement which was made available to THISDAY, expressed delight that abi nitio, Babandede read a riot act and made it sufficiently clear that with him as the CGI, it is no more business as usual in the service, and “true to his vowed commitment to curb corruption in NIS. He said the immigration boss had kicked against the ‘return system’

where junior officers compromise senior officers with proceeds of corruption; abolished lobbying and dollarisation of foreign postings.

The media group further lauded the NIS boss for the retrieval of diplomatic passports from former political office holders; issuance of ultimatum to passports officers to clear backlog of passport issues within 48 hours and to henceforth issue new passports within 72 hours.

COCMEP described the automation of the operations of NIS and the limiting of officers’ posting to a maximum of two years as good steps to curb corruption in the service.

The group president therefore urged all stakeholders particularly the media to rally round the new Immigration boss and to support him to ensure that his reforms, changes and anti-corruption measures are successful.

He further charged the entire men and officers of NIS to embrace the changes in the system and rid the service of past impunities for a better Nigeria.

Microsoft founder and cofounder of the Bill and Melinda Gates Foundation, Mr. Bill Gates, yesterday said the private sector needs partnership with the Nigerian government and other regional bodies in West Africa in order to fight Wild Polio Virus (WPV).

Gates stated this in an interview with Voice of America “Africa 54” programme monitored in Abuja.

Speaking against the backdrop of the recent new cases of polio in Borno State, he described the two incidents as disappointing, considering the enormous success recorded earlier in polio eradication.

“Our main challenge is that we have kids who the vaccinators have a tough time finding. Reaching the kids in an unsecure environment can be very complex.

“So we are going to need great partnerships with the governments in the region, particularly in Borno State,” Gates said.

He expressed optimism on the capability of Nigeria to defeat polio

despite the challenges of accessing the children in the most vulnerable areas for immunisation.

Gates further called for greater partnership with governments in the North-eastern region of Nigeria to tackle the situation.

Speaking on the accessibility to the endemic areas of the country despite the security challenges, Minister of Health, Prof. Isaac Adewole, said the troops are accompanying the health workers to the affected areas and children are being vaccinated; adding that the government has declared a polio emergency in the area.

Adewole who spoke at the just concluded WHO African Region Summit said the military medical teams had also joined in reaching the areas as well as collaborating on the on-going vaccination at the various Internally Displaced camps (IDPs).

The WHO also commended the capability of the Nigerian government to address the issue with a commitment to support the country in eradicating polio at the ongoing Regional Committee

46

TUESDAY AUGUST 23, 2016 • T H I S D AY

CRIME&PUNISHMENT

Saudi Authorities Release Alleged Nigerian Drug Traffickers Jamelah Sanda The Saudi Arabian government has released Nigerian pilgrims who were arrested for alleged drug trafficking even as it has intensified security checks on others.

The officer in charge of consular matters in Madinah, Abdurrahman Hassan Fullatah, who made the assertion in response to the alleged drug trafficking story, noted that the allegation was over exaggerated by a section of the media.

He said two of the arrested persons had been released while the third was still under investigation.

He added that the laws of the land do not grant access to the

culprit, even as the security cannot release details or information until investigations had been concluded.

He frowned at a situation where anything negative in connection to Nigeria is overblown by the media, even when the same checks and arrests are made in cases regarding other nationalities.

He however, urged Nigerian pilgrims coming into the kingdom to respect the laws of the land and not to come with contra-bounds in order to have smooth stay in the country.

The Madinah coordinator, Dr. Bello Muhammad Tambuwal, said reports on the arrest have been complied with, while efforts were still ongoing to follow up the case of the third person.

At the Jeddah and Madinah

International Airports, security officers dressed in common Saudi attires have mounted vigilance on the incoming passengers.

They pick out some of the passengers at random or by intelligence estimation for special screening and possible interrogation.

A Nigerian pilgrim who spoke to THISDAY on condition of anonymity, said five co-pilgrims including himself were cornered by three plain-clothed Saudi men at the airport when they had finished their processes with the Saudi immigration.

He said the Saudi men took their international passports one by one and asked them to follow them into a room by a corner.

“Inside there, they ask me: are you a soldier? I told them that I was not. One of them asked me: Can you shoot gun?

I said I cannot. They asked one of us: Do you know the sound kpakpakpakpa? The pilgrim told them he does not know. Apparently, he was scared. Then, they thoroughly searched us one by one physically and with a machine. After that, they gave us our passports and asked us to go. I was not happy with the experience because picking us out from a large crowd of pilgrims made me feel very shy and uncomfortable,” said the pilgrim who recounted his ordeal in a Nigerian local dialect.

In Brief Ogun LG Chairmanship Candidate’s Wife Kidnapped

The wife of the chairmanship candidate of All Progressives Congress (APC) in Ewekoro Local Government of Ogun State, Mrs. Kudirat Balogun, was kidnapped on Sunday night at her family home, Olomore in Abeokuta. It was gathered that the kidnappers arrived the family home around 8p.m. before Kudirat was taken away. Kehinde Balogun, 13-year-old son of the victim who witnessed the operation explained to journalists that the four kidnappers came into the family premises asking for their father. Kehinde said before his mother was kidnapped he was attending to the kidnappers without having knowledge that they were kidnappers until when guns were pointed at them.

He said the mother who was busy cooking ran into the hand of kidnappers, saying that his mother was taken to a parked Toyota car. He however, said he raised alarm in the neighbourhood, but efforts to trace the kidnappers proved abortive. The husband, Gafar said the case had been reported at the Lafenwa Police station, stating that the kidnappers were yet to contact the family.However, Ogun State Police Command Public Relations Officer, Abimbola Oyeyemi, who confirmed the story, said frantic efforts were ongoing to rescue the victim unhurt. He added that the Commissioner of Police has ordered anti-kidnapping unit to take over the case, stressing that investigations have commenced immediately on the matter.

Gunmen Kill Four Youths in Lagos

WE WANT REINSTATEMENT

Rhe sacked officials of the Nigeria Immigration Service on their fifth day of protest in Abuja....yesterday

Police Interrogate Gynaecologist over Sex-for-Treatment Allegations Dele Ogbodo in Abuja The Commissioner of Police, Federal Capital Territory (FCT), Mustafa Mohammed, yesterday interrogated a 47-year-old consultant gynaecologist, Dr. Kalu Nwachukwu, suspected to have demanded sex from female patients before treatment.

Briefing the media in Abuja, Mohammed also said the command had arrested more than 41 suspected kidnappers and car snatchers apprehend by the police following tip off from the public.

According to him, Isah Aliu, Labaran Abubakar and Abdullahi Ishaq, were suspected to be a syndicate that specialised in kidnapping and armed robbery.

He said the command had successfully cracked and arrested some of them, while other members of the syndicate are still at large, adding that among those arrested was a notorious car snatcher and leader of the gang who recruited the hoodlums and supplied them arms and ammunition to carry-out operations for him.

On the arrest of the gynecologist, the CP said: “Acting on report of the alleged unethical conduct of one Dr. Kalu Nwachukwu, a consultant gynecologist, who was reported to have been in the habit of taking undue advantage of his female patients who come to him for treatment police operatives attached to the command swung into action leading to the arrest of the suspect.”

Mohammed said Nwachukwu confessed to have had sexual affairs with some of his female patients who came to him for treatment or consultation in his office and other locations.

According to him, investigations also revealed that the suspect used drugs to induce his victims in order to have intercourse with them, thereby corroborating the allegations against him.

He said: “The FCT police command seizes this medium to advise members of the public to ensure they carryout thorough background check on the credibility of the doctors they intend to engage as their personal or family physician.”

Items recovered from the

suspects, according to the CP, included 13 motorcycles, six

handsets, television set, and nine wrist-watches.

Police Rescue 13 Children, 15 Adults Chained up in Lagos House Chiemelie Ezeobi The Lagos State Police Command at the weekend rescued 13 children and 15 adults chained and locked up by one Emmanuel Adeyemi, at the Oke-ira area of Ojodu, Lagos.

The state Commissioner of Police, Mr. Fatai Owoseni, acting on a tip off, had deployed operatives at the Area G Command Headquarters, to the scene.

Although the initial intelligence report was that a teenager was chained up in the house at Oyinbo Unity Estate, Olamidun Close,Yakoyo, Oke-Ira, Ojodu, subsequent search of the residence by the police revealed that 27 others apart from the 17-yearold Toba Adedoyin, who the police had gone to rescue.

Confirming the incident, the state Police Public Relations Officer, Dolapo Badmos, said: “The command received a report through Area ‘G’ Command Headquarters,

Ogba that a child was chained in a house at Oyinbo Unity Estate, Olamidun Close, Yakoyo, Oke-Ira, Ojodu.

“Consequently, a team of policemen was mobilised to the location, where a teenager, named Toba Adedoyin ‘m’ aged 17years was found in a room with chain, on his legs. “The victim was allegedly chained by one EmmanuelAdeyemi ‘m’ who claimed to be his father, in order to restrain him from going out.

“Further search of the premises led to the discovery of other people chained by the suspect.

“A total number of 28 persons, comprising, six adult male, nine adult female, seven female children and six male children were rescued and taken to protective custody.

“Suspect has been arrested and currently undergoing interrogation as the command is working assiduously to get the root of the occurrence.”

In what is suspected to be a reprisal attack, some gunmen alleged to be cultists, at the weekend, stormed Apapa Road and Otumara communities in Lagos Island, killing four youths in cold blood. When they stormed the Abule-Nla community on Apapa Road, they opened fire on the residents, killing three persons, while stabbed one Darlington Ogbu at Otumara community. It was gathered that Ogbu was drinking beer with his friends when the killers stormed Otumara community on two motorcycles and stabbed him to death. But at Apapa Road, the gang said to belong to the Kogbagidi boys group, opened fire on three youths identified as Samuel Olu, Junior and Taiye to death while other residents caught in the gunfire sustained gunshot wounds. Following the killings, suspected cultists stormed Lagos Mainland the next day to wreak havoc but they were prevented by vigilantes and a combined team of policemen.

Speaking on anonymity, one of the residents said: “Gunmen came in two Toyota Camry cars at Apapa Road and opened fire on the residents at Abule- Nla. The place they shot people is the base of the Kogbagidi boys. “The boys were relaxing when the gunmen stormed the area. Three youths died at the end of the shooting while other residents sustained gunshots wounds.

“We are suspecting that this is cult related. Various boys belonging to the Kogbagidi boys, the Otto boys, and the Fagbayimu Apapa Road boys also known as Skippo boys are involved in this supremacy fight. “The next day, some boys stormed the community in their large number to wreck havoc.

They came in buses, cars, Okada and they were brandishing dangerous weapons like cutlass, axe and guns. Some of them wore black T-shirts while others wore blue T-shirts and berets.

“Residents ran helter skelter to avoid being killed. It took the combined efforts of vigilantes group in Lagos Mainland, police men from the Iponri police station, Denton, Area C command and the State Criminal Investigation Department (SCID) to stop the mayhem they were about to cause.” Already, the police have arrested 30 suspected cultists over the planned mayhem and they are undergoing investigation at the Federal Special Anti-Robbery Squad (FSARS), Ikeja. Following the killings, the new traditional ruler of the Otumara community and Environs Baale Kehinde Kalejaiye Ilufemiloye 1, called for a peace and security meeting of all residents and stakeholders, where he expressed displeasure over the dastardly killings. Ilufemiloye urged parents and guardians to monitor their wards and children as he urged the government and the security operatives to increase security presence in Lagos Mainland. Also, the Secretary of the Vigilantee Group of Nigeria, Mr. Musbau Agbodimu, also condemned the killings, as he urged synergy between the security operatives to stem cultism and other criminal activities in the community.

Troops Clear Kidnappers Den in Bauchi

Troops of 33 Brigade, Nigerian Army, based on incessant reported cases of armed robberies and kidnappings in some parts of Bauchi State have embarked on fighting patrols to clear the state of such criminal elements. The troops carried out a fighting patrol on Sunday at Dutsen Mairama and around Dogon Ruwa settlement within Lame/Burra forest of Toro and Ningi Local Government Areas of the state. During the encounter, three armed kidnappers were killed and their camps were destroyed. The troops also recovered arms and ammunition including empty shells. A statement signed by the acting Director of Army Public Relations, Colonel Sani Kukasheka Usman, said the troops would continue to carry out such clearance operations in all known hideouts of kidnappers and armed bandits within Bauchi and other states to deny criminal elements freedom of action.

A

23.08.2016

WEEKLY PULL-OUT

‘REVENUE FROM THE MARITIME SECTOR CAN SURPASS EARNINGS FROM CRUDE OIL’

Mike Igbokwe SAN

2/DASHBOARD

23.08.2016

Proceedings Conducted Without Jurisdiction No Matter How Well Conducted, Are Null and Void PAGE 3

Lawyers, other Stakeholders Brainstorm on the Effective Use of ADR in Nigeria’s Tourism and Hospitality Sector PAGE 4

‘A Lawyer Must Develop the Requisite Patience and Skill Attendant to his Chosen Area of Law’ PAGE 5

Access to Quality Justice in Nigeria PAGE 6

Limits of Powers of the Legislature in the Budgetary Process

QUOTABLES ‘My heart bleeds for young lawyers in Nigeria who are facing profound survival issues. A lot cannot find a job and many who are in chambers are paid slave wages. These to me are the critical problems before the Bar and the legal profession.’

– Former Director-General of the Nigerian Law School (NLS), Professor Tahir Mamman SAN

PAGE 7

Developing a Liquidity Solution for the Nigerian Power Sector (Part 1) PAGE 12

COLUMNISTS SANDRA OKE Pearls of Law A pearl is revered for its purity, elegance and beauty. Similarly, Pearls of the law will address an assortment of legal issues ranging from trending matters to matters that will shape our future as lawyers. It will also consider the time-honoured principles and traditions of the law with a view to restoring the purity, elegance and beauty to the practice of law.

Sandra Oke is a graduate of the University of Lagos and obtained her LLM from Queen Mary University London and an MBA from Liverpool John Moores University. She is a Counsel at Norfolk Partners.

ADERINSOLA FAGBURE Aderinsola is a keen writer having written her first article which was published by the junior section of a national daily, at the age of five. She is a graduate of Igbinedion University Okada and has just completed a Master’s degree in Corporate Law at the University College London.

She is a member of the Nigerian Bar Association. Her column, “In black and white” discusses the need for innovation in the Nigerian legal scene particularly in the fields of Mergers and Acquisitions, Corporate Finance, Corporate Governance and Energy Law.

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

Proceedings Conducted Without Jurisdiction No Matter How Well Conducted, are Null and Void

I

t is trite that the effect of a Court assuming and exercising jurisdiction over a matter it has no jurisdiction to entertain, is that it acted ultra vires its jurisdiction and its proceedings and decision or order, no matter how well conducted and considered, are all null and void. The Court of Appeal in the instant Appeal held that the trial court had no jurisdiction to entertain the suit, struck out the suit, its decision and allowed the appeal.

Facts The Appellant (defendant at the trial court) and Respondent (plaintiff at the trial court) entered into a Contract for installation of major pipeline projects, EPCM -1 Offshore Pipeline and Platform Tie-Ins. A dispute arose between the parties over some terms or aspects of the contract, particularly as regards the issue of the alleged breach of the Recovery Plan Heads of Agreement. The Respondent alleged that the Appellant refused to issue the compensatory scope of work to the Respondent as agreed.

Article 30 of the said contract states that any dispute arising out of, or in connection with the contract, which is not resolved through “good faith negotiations” shall be settled by arbitration under the rules of the United Nations Commission on International Trade Law (“UNCITRAL”), by three arbitrators.

The Appellant and the Respondent could not amicably resolve their dispute through "good faith negotiations" and as a result of irreconcilable differences, the Appellant by a letter dated 20th October, 2011 wrote to the Respondent informing them that they had decided to refer the on-going dispute to Arbitration under Article 30 of the said contract.

The Appellant, in furtherance of proceeding with the arbitration, appointed an arbitrator, one Dr. Robert Gaitskell, QC. The Respondent, on their part insisted that it would not participate in the arbitral proceedings on the grounds that the conditions precedents to the commencement of the arbitration as enshrined in the contract agreement had not been met. The Appellant proceeded to write the Acting Secretary General of the Permanent Court of Arbitration at The Hague to constitute an appointing authority that would appoint an arbitrator for the Respondent.

The Respondent in a bid to stall the arbitral proceedings, instituted Suit No FHC/PH/CS/623/2011 and Suit No. FHC/PH/CS/644/2011, at the Federal High Court, Port Harcourt Judicial Division, Coram Hon. Justice Lambo Akanbi (“trial court”). The Respondent in the said suits, alleged breach of contract by the Appellant and sought an order prohibiting the convening of the arbitral proceedings. The Appellant in response to Suit No, FHC/PH/CS/644/2011 filed a Preliminary Objection (“PO”) on the ground that the Federal High Court had no jurisdiction in the matter.

They further contended that the Court could not prohibit arbitration and that the proper place to vent any lack of conditions precedent for the invocation of the arbitration clause was the arbitral tribunal. The trial court upheld the Appellant’s PO and struck out the suit on 29th February 2012. The Respondent being aggrieved with the decision appealed the said decision and subsequently withdrew the appeal.

Thereafter, the Respondent instituted another Suit No. FHC/PH/CS/203/2012 (“the subject matter of the appeal”) against the Appellant and its party appointed arbitrator. In the said suit the Respondent sought a number of declarations and injunctive orders to restrain the appellant "from howsoever proceeding or further proceeding with the proposed arbitration billed to take place in London, United Kingdom. The Respondent further sought an interpretation of the contract Agreement viz-a-viz the conduct of the parties and for the Court to ascertain whether or not the provisions of the said Article 30.2 have been complied with. The Court held that it had jurisdiction on the matter and granted the Respondent’s reliefs. The Court granted the Respondent’s reliefs.

The Appellant being aggrieved with the decision appealed to the Court of Appeal, Port Harcourt Judicial Division and raised the following issue for determination: “Whether or not the Federal High Court has jurisdiction to entertain the case whose subject-matter is a contract relating to and connected with mines and minerals, including oil fields, oil mining, geological surveys and natural gas?”

The court in resolving the issue decided to first determine an issue which was raised at the trial court by the appellant; “Whether the instant suit was not barred by issue estoppel by virtue of the ruling of the trial court in Suit No. FHC/PH/CS/644/2011, which struck out the suit seeking prohibition of the arbitration?”

On the aforementioned issue, the Appellant argued that the decision of the trial court (Coram Akanbi J) in Suit No.

of the Federal High Court. Thereafter they submitted that once it is shown that the contract falls squarely within the provisions of Section 261(1) (n) of the 1999 Constitution, it does not matter whether or not the claim emanating there from is for breach of contract, and further that the nature of the claim by the Plaintiff is immaterial once from the pleadings, the nature of the contract and the activities there under are clear and unambiguous. Based on this premise, they submitted that ONOURAH v KRPC is not relevant to the case.

In the Court of Appeal In the Port Harcourt Judicial Division Holden at Port Harcourt Before Their Lordships Ejembi Eko Bitrus G. Sanga Mohammed Lawal Garba Justices, Court of Appeal CA/PH/667/2013 Between Mobil Producing Nigeria Unlimited

.... Appellant

And Suffolk Petroleum Services Limited .......Respondent (Judgment Delivered by Ejembi Eko, JCA)

FHC/PH/CS/644/2011 in which the Appellant and the Respondent were both parties, raises the issue estoppel if not estoppel per rem judicatam, which in effect operates to estop the Respondent from subsequently re-litigating on the same issue against the Appellant herein. They relied on IKOTUN v OYEKANMI (2008) 10 NWLR [pt. 1094] 100 at 115 – 116.

The Respondent, in response, argued that Suit No. FHC/ PH/CS/644/2011 and the present Suit No. FHC/PH/ CS/203/2013 are different in content as well as the reliefs.

They further argued that both said suits are not the same and that while Suit No. FHC/PH/CS/644/2011 sought an order prohibiting the convening of the proceedings of the arbitral tribunal initiated by the Appellant, Suit No. FHC/PH/CS/203/2013 seeks declarations inter alia that the arbitral proceedings purportedly initiated by the Appellant was premature and incompetent, the conditions precedent for the commencement of the convening of the arbitral tribunal and the commencement of the arbitral proceedings having not been fulfilled.

Thereafter they submitted that the decision of Akanbi J touted as constituting issue estoppel was a mere obiter dictum. They further submitted that the successful preliminary objection of the Appellant at the trial court does not prevent the subsequent action being brought between the same parties over the same subject matter, as the order striking out the suit is dissimilar to an order dismissing the suit.

They relied on N.D.I.C. v OKEKE (2011) 6 NWLR [pt.

1244] 445 at 462- 463 (CA).

On the sole issue, the Appellant argued while relying on Section 7 (1) of the Federal High Court Act, Section 251(1) of the 1999 Constitution that the matter is one of simple contract which the Federal High Court lacks jurisdiction to adjudicate on. They relied on ONOURAH v K.R.P.C. LTD (supra); ADELEKAN v ECULINE NV (2006) 12 NWLR [pt 993] 33 at 52; PORTS & CARGO HANDLING SERVICES CO LTD. v MIGFO NIG LTD (2012) 18 NWLR [pt. 1333].

The Respondent, in response argued that the Federal High Court, by virtue of Section 251(1) (n) of the 1999 Constitution, has jurisdiction to entertain their claim. They further argued that in S.P.D.C. v ISIAH (2001) 11 NLWR [pt. 723] 168 at 178 – 180, the Supreme Court had put to rest the issue of jurisdiction in holding that “the construction, operation and maintenance of an oil pipeline by a holder of oil prospecting license is an act pertaining to mining operations” which falls within the exclusive jurisdiction

Court’s Rationale and Judgment With respect to the issue estoppel, the court stated that Section 12(1) of the Arbitration and Conciliation Act is clear and unambiguous that an arbitral tribunal is competent to rule on questions pertaining to its own jurisdiction and on any objections including the prematurity of the invocation of its jurisdiction. The Court further stated that the authoritative declaration by Akanbi J on 29th February 2012, that the proper forum to raise the issue whether the Arbitral Tribunal’s jurisdiction under the contract agreement had been properly or completely invoked is the arbitral tribunal remains extant and binding on the Respondent until set aside.

Thereafter the Court held that the decision culminating in the striking out order operates not only as being functus offcio, it also estops the party against whom the order was made from reopening the jurisdictional issue raised by the Appellant thereon, on the basis of Article 30 of the contract for as long as the decision subsists between the same parties in dispute over the said contract. The Court further held that the Respondent was consequently estopped from re-opening the same jurisdictional issue arising from Article 30 of the contract for re-litigation as they had done in Suit No. FHC/PH/CS/203/2012. Additionally, the Court in agreeing with the Appellant held that the trial court lacks the necessary jurisdiction to entertain the suit, and ought not to have assumed jurisdiction to entertain the cause or matter of the suit No. FHC/PH/CS/203/2012 and thereafter struck out the said suit including the decision and orders made therein.

On the sole issue, the court held that in SPDC v ISIAH, there was a direct oil spillage from an oil pipeline that was being repaired, upon it being dented following a tree that fell on it accidentally. The court further held that the oil spillage from the oil pipeline was a thing that was directly associated with, related to, arising from, or connected to mines, minerals including oil mining. The court thereafter held that SPDC v ISIAH is different from the case of SPDC v SIRPI-ALUSTEEL CONST. LTD, in which it was held that an action for breach of contract of service for the rehabilitation of the SPDC’s four crude oil storage tanks is an action for mere breach of contract, actionable at the State High Court and not the Federal High Court. Based on this premise, the Court held that the aforementioned case demonstrated that the purpose of a contract of service, and not its alleged breach, is not the determinant of the nature of the claim and it is trite that it is the claim or the nature of the Plaintiff’s claim that is relevant in considering the jurisdiction of the trial court.

Based on the aforementioned, the Court held that from the nature of the claims put up by the Respondent in the Suit No. FHC/PH/CS/203/2012, that the suit for breach of contract of service and/or interpretation of the provisions of the said contract is not one that falls within the jurisdiction of the Federal High Court vested expressly by Section 7 (1) of the Federal High Court Act and Section 251 (1) of the 1999 Constitution as amended. The Court further held that the effect of a court of record assuming and exercising jurisdiction over a matter it has no jurisdiction to entertain is that it acted ultra vires its jurisdiction and its proceedings and decision or order, no matter how well conducted and considered, are all null and void. The court relied on MADUKOLU v NKEMDILIM (1962) 2 SCNLR 341.

The Court thereafter stated that the Respondent, in filing Suit No. FHC/PH/203/2012 had an ulterior purpose, to use its pendency to arrest the arbitration proceedings as a ruse to justify the Respondent’s conduct of repudiating/ refusing its obligation under the arbitration clause.

The Court allowed the appeal, struck out Suit No. FHC/ PH/CS/203/2012 and its decision and thereafter awarded the Appellant cost in the sum of N300, 000.00.

For the Appellant: Mrs M.A. Essien SAN, Miss R.I. Omofuma, O.U. Ulasi Esq, Aham Eke Ejelam For the Respondent: R.E. Wanogho, Miss O.Osirim, Miss J.O. Nwadinobi, Miss O.Chanai Reported by Ibukunoluwa Omotorera Owa, Aluko & Oyebode, Lagos.

4/

23.08.2016

Magu: Frivolous Applications by Lawyers, Frustrating Corruption Fight

L-R: Chairman, Tourism and Hospitality Committee, Section on Business Law of the Nigerian Bar Association, Mr. Okey Egbuchu, Chief Executive Officer, Premium Sports Management Service/Sportspro Nigeria, Ms Nkechi Obi, President, Lagos Court of Arbitration, Mr. Yemi Candide-Johnson SAN and1st Vice President, Nigeria Football Federation, Mr. Seyi Akinwunmi at the Roundtable Series, organised

by Lagos Court of Arbitration held in Lagos last Thursday

Lawyers, other Stakeholders Brainstorm on the Effective Use of ADR in Nigeria’s Tourism and Hospitality Sector Stories by Akinwale Akintunde Based on the growing concerns over dispute management in the hospitality and tourism industry, the Lagos Court of Arbitration (LCA) last Thursday brought together business leaders, entrepreneurs, legal advisers, regulators and other stakeholders at a roundtable discussion on the effective use of Alternative Dispute Resolution (ADR) in Nigeria’s hospitality and tourism sector.

The event which is the continuation of the Lagos Court of Arbitration ADR industry Roundtable Series took place at the LCA office, International Centre for Arbitration and ADR, Lekki with the theme: “Rethinking Dispute Resolution in Nigeria’s Hospitality and Tourism Sector”.

Setting the tone for discussion at the event, the President of the Lagos Court of Arbitration, Mr. Yemi Candide-Johnson SAN stated that the hospitality, leisure and tourism industry is highly sensitive to economic and competitive conditions.

According to him, this is because, the market components required to maintain a successful tourism and hospitality industry are intensive in capital, management, marketing, personnel, energy, maintenance and technology.

The LCA President in his welcome address explained that most hospitality industry agreements particularly, hotel management agreements, franchise agreements, technical service agreements and license agreements, generally provide for the inclusion of an alternative dispute resolution (ADR) clause, yet it is not uncommon that these clauses are ignored when disputes arise.

"Evidently, Nigeria’s hospitality, tourism and leisure companies need to meet the challenges of today’s market by understanding and establishing strategies for effective dispute resolution management that will address consumer trends, economic conditions, technology, competition and concerns for public safety.

"One indication of Nigeria's readiness to address key challenges in the industry is the 2013 Judgement of the Supreme

Court in the case between the Federal Government vs Lagos State Government on Hotel Licensing and Regulation.

"In dismissing the Federal Government’s case, the Apex Court held that the Nigerian Tourism Development Corporation (NTDC) Act went beyond the powers of regulating “tourist traffic” granted to the Federal Government under the Exclusive Legislative List of the 1999 Constitution of the Federal Republic of Nigeria.

"The case effectively challenged the constitutionality of the NTDC’s powers to unilaterally regulate and control hotels and tourism in Nigeria. The Court, therefore, validated the respective laws of Lagos State namely the Lagos State Hotel Licensing Law 2003, the 2009 Hotel Occupancy and Restaurant Consumption Tax Law of Lagos State and the 2010 Hotel Licensing (Amendment) Law of Lagos State to regulate the Hotel and Tourism industry in Lagos State.

"As Nigeria’s foremost dispute resolution institution established to promote effective and efficient resolution of commercial disputes, the LCA seeks to work with the public and private sector to create a better system of resolving commercial disputes in the industry.

"Over the last decade, tourism spurred by foreign direct investment has evolved into a key economic driver for many destinations, promoting income growth and job creation in local economies. While global tourism has grown rapidly, the sector still holds tremendous future potential", Candide-Johnson noted.

Speaking on 'Why and How ADR is a Viable and Attractive Form of Dispute Resolution for Operators', Mr. Okey Egbuchu, Chairman, Tourism and Hospitality Committee of the NBA Section on Business Law asserted that Nigeria's progress as a nation depends largely on tourism because the sector is the largest employer of labour.

According to Egbuchu, Nigerian lawyers have refused to see the huge potential in the tourism sector.

He stated that many disputes which can be resolved through ADR mechanism especially, Negotiation, Mediation and Reconciliation abound in the sector.

He therefore appealed to lawyers to bring their wealth of knowledge and experience to explore the huge potential the tourism and hospitality industry provides.

Also speaking on 'A Perspective on Sport Tourism in Nigeria: Using ADR to Resolve Collegiate, Professional and Sports-Business Disputes', Mr. Seyi Akinwunmi, 1st Vice President of the Nigeria Football Federation (NFF) explained that sport tourism generally refers to the experience of travel to engage in or view sport-related activities.

Akinwunmi stated that at a time in Nigeria when there is a dire need for diversification from an oil dependent economy, Sport Tourism creates a viable alternative to the oil based sector because it will contribute to the economic, social, political, infrastructural and cultural development of the country if properly harnessed.

He noted that many countries have realised the benefits of sports and tourism, hence they bid to host mega sports event such as the Olympics Games and World Cup The NFF boss stated that sports tourism is quite unpopular in Nigeria due to many challenges faced with sport administration in the country, adding that chains of disputes which can put huge amounts of money, time, relationships, national pride and future economic gains at stake, can arise out of sports tourism.

Akinwunmi, who is a lawyer and a partner at Akinwunmi & Busari Legal Practitioners said traditionally, the main form of dispute resolution in sports is court-based legal proceedings, but that in many jurisdictions, ADR mechanisms have been embraced as means to circumvent the challenges associated with litigation.

While encouraging ADR for sports tourism disputes, he emphasised that "it is my personal view that ADR mechanisms can be institutionalised for sports related disputes in Nigeria if the following steps are followed: establishment

of a specialised sports related ADR centre, awareness and early referral by court.

"Sports disputes, generally speaking, lend themselves to settlement by various forms of ADR, because a speedy, flexible and relatively inexpensive dispute resolution process is required by the sports world - not least because of sporting deadlines and maintaining sporting relationships.

Presently in Nigeria, there is no functional ADR body specialised in sports-related disputes. I strongly recommend the establishment of such a body to facilitate sports tourism in Nigeria, so that Nigeria can rank among the countries that have gained tremendously in world sporting events", he added.

The roundtable discussions had Mrs. Folashade Ali, Principal Partner, Vatad Solicitors and Ms. Nkechi Obi, CEO, Premium Sports Management Service as sessions facilitators respectively.

The Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, has urged lawyers to desist from filing frivolous applications in court, adding that it is frustrating the fight against corruption.

Magu however warned some lawyers whom he described as 'rogue elements' frustrating the fight against corruption to desist from filing frivolous applications as the commission will no longer tolerate such.

The EFCC boss made this appeal in Lagos last Friday, at a public lecture organised by the National Association of Democratic Lawyers (NADL) with the theme 'The Role of Nigerian Lawyers in the Fight against Corruption'.

While praising legal practitioners for assisting the agency in their duties, Magu said the commission has had to confront corrupt lawyers.

"Your direct confrontation of the corruption monster through the instrumentality of the law is an inspiration to those of us in the enforcement of the law. However, in the course of confronting the monster, we constantly run up against a gang of rogue elements who are not only frustrating the work that we are doing but also give a terrible name to the Bar and Bench.

"The EFCC has no choice than to challenge senior lawyers who are perverting the cause of justice. We are resillient to weed out corrupt individuals be it in the judiciary or otherwise. There is no time now in Nigeria than to say Enough is Enough.

Under my watch, EFCC will come to the aid of shortchanged Nigerians and where there is impunity, EFCC will intervene", he added.

The Guest lecturer, Professor Bolaji Owasanoye said lawyers have a greater role to play in the fight against corruption.

He said the success of the fight against corruption depends on the cooperation of the Nigeria Bar Association. (NBA).

"The role of lawyers in the fight against corruption is well recognised. Like Ebola and cancer, corruption has eaten deep

into the country until President Muhammadu Buhari came on board. Recent revelations of mind boggling corruption emanating from the military arms contract has established the fact that the effect of corruption in Nigeria is not to be under estimated.

"If the fight against corruption fails, Nigeria has failed because if nothing changes, the legal profession will not survive.

"If lawyers fails to fight against corruption, they are not fighting government but the society", he said.

The chairman of the occasion, Mr. Femi Falana SAN said President Muhammadu Buhari must do more than declaring his assets but ensure his Ministers and other public office holders follow suit.

"It is important to say that no country can fight corruption without involvement of lawyers. unfortunately, many lawyers have been part of the problem we have to solve," he said.

Speaking on the issue of padding, Falana said the Speaker of House Representatives, Yakubu Dogara was wrong to have said padding is not a crime.

"Section 81 of the constitution says the President shall cause the budget to be prepared before the House not the National Assembly influencing the budget. Today I am not sure we have many lawyers of good conscience. We were hoping the NBA would do something about those lawyers who allow cases to go on for 15 years but since the NBA is busy making money, it is time for lawyers of good conscience to distance themselves."

Falana further said the President must ensure his cabinet members also declare their assets.

"We want to advise President Buhari that it is not enough to say he and his Vice have declared their assets but all the Ministers must also declare their assets. It is also not enough for the President to say he has stopped collecting double salary in the form of his pension, he must also get the legislators and the Ministers to do the same", he added.

New Law Report, Practice Digest Unveiled in Lagos "A well thought out addition to our legal ensemble and one that could not have come at a better time, when the alarming paucity of knowledge one notices in our courts nowadays is nearing endemic proportions". With these few words, Mrs. Hairat Aderinsola Balogun, a Life Bencher of the esteemed Body of Benchers welcomed the introduction of two new books, 'Judgments of Appeal Cases of Nigeria' and 'Practice Digest for Legal Practitioners' into Nigerian Legal literature.

The books, authored by two Lagos-based legal practitioners, Mr. Adeyinka Kotoye and Mr. Babatunde Adebayo with the aim of improving the quality of Lawyers’ briefs in the country, were presented to the public last week.

In his remarks, Chairman of the event, Dr. Muiz Banire SAN noted that the introduction of the Law Report is timely, especially at a period when many important decisions of the appellate court

are underreported in the country.

He lamented the dearth of documentation of events in the country, stressing that over a decade since the Ejigbo bomb blast in Lagos, there is no book or journal that gives a vivid account of the event.

He said Nigerians should embrace the documentation of events so that forthcoming generations will be aware of the accounts of what happened at various times in our society’s existence.

“The introduction of this Law Report is timely at the stage when important decisions of the Appellate Courts are underreported in the country, especially decisions that have to do with principles of law”, Banire said.

The books’ Reviewer, Kola Abiri, described them as well researched works, adding that the books will key into legal challenges confronting the nation at this stage.

Earlier, one of the authors and

the Editor-in-Chief of the Law Report, Kotoye explained that the Law Report is for cases from the Court of Appeal (all divisions) and the Supreme Court of Nigeria.

According to him, the two books are concise up to date statements of the law and contain almost three scores of relevant topics, including the Position of the Supreme Court as it relates to the Nigerian Bar Association Stamp and Seal, contains the Legal Practitioners Act Cap 1.11 2004, Rules of Professional conduct 2007 and a comprehensive index.

“These books, no doubt, will serve as a great quick reference tool for the practitioners and students of the law alike", Kotoye emphasised.

Other dignitaries at the book launch held at the Nigerian Bar Association (NBA) Ikeja Branch Secretariat included Hon. Justice Habeeb Abiru of the Court of Appeal, Kaduna Division, Hon. Justice W. Animahun of the Lagos High Court and Mr. Olalekan Yusuf SAN, former Chairman, NBA Ikeja.

23.08.2016

/5

The Limits of Legislative Powers - Should Criticism of a Legislative House Be Actionable Defamation?

Abubakar D. Sani

I

n comments widely reported in the media (see page 7 of the Punch Newspaper of Friday, August 12, 2016), the Speaker of the House of Representatives, Hon. Yakubu Dogara appeared to resort to mild scare tactics in order to deflect criticism of the House and himself for allegedly “padding” the 2016 Budget.

Mr. Speaker was reported as having “dismissed the efforts of the Economic and Financial Crimes Commission, the Police and the Independent Corrupt Practices and other related offences Commission to investigate the alleged padding”, and, to have added that: “It doesn’t make sense. They have forgotten about the Legislative House Powers and Privileges Act, Sections 24, 30 and others, which state that most of the things we do in the National Assembly are privileged. They cannot be grounds for any investigation into the procedures or proceedings against a member of Parliament; either the Speaker or the President of the Senate; once they are done in the exercise of their proper functions.”

By specifically referring to two clauses of the Legislative Houses Powers and Privileges Act, the Hon. Speaker - a lawyer – has clearly put them in issue and thereby invited comment, wittingly or otherwise, to his position. So what exactly, do those provisions of the law say? We shall review them seriatim, as follows:“24. Publication of certain statements and

writings an offence.

(1) Any person who(a) Publishes any statement, whether in writing or otherwise which falsely or scandalously defames a Legislative House or any Committee thereof; or (b) Publishes any writing reflecting on the character of the President or Speaker, as the case may be, of a Legislative House or the Chairman of a Committee of a Legislative House, in the conduct of his duty as such President, Speaker or Chairman; or (c) Publishes any writing containing a gross, willful or scandalous misrepresentation of the proceedings of a Legislative House or of the speech of any member of Legislative House, shall be guilty of an offence and shall be liable on conviction to a fine of two hundred naira or to imprisonment for twelve months, or to both such fine and imprisonment.

(2) In this section “publish”, in relation to any writing, means exhibiting in public or causing to be read or seen, or showing or delivering, or causing to be shown or delivered, with the intent that the writing may be read or seen by any person” “30.Courts not to exercise jurisdiction over acts of President, Speaker or Officer.

Neither the President or Speaker, as the case maybe, of a Legislative House, nor any officer of a legislative house shall be subject of the jurisdiction of any court in respect of the exercise of any power conferred on or vested in him by or under this Act or the Standing Orders of

the Legislative House, or by the Constitution.”

For reasons which I shall presently outline, I submit that both provisions are problematic, if not outrightly ultra vires the National Assembly and are, therefore, invalid. Starting with Section 24 of the Act, I submit that it can be equated to a legislative Sword of Damocles hanging over any one that dares to criticize the National (or a State House of) Assembly, even in good faith.

Indeed, it is no exaggeration to suggest that it harks back to the dark days of Decree No. 4 of 1984, enacted by the Military regime of then General (now President) Muhammadu Buhari.

For obvious reasons (given that the focus of this piece is Section 24 of the Act), we shall not allow Section 30 to detain us beyond observing, in passing, that it is inconsistent with Section 4(8) of the Constitution, which precludes the National Assembly or a State House of Assembly from enacting any law that ousts or purports to oust the jurisdiction of a court of law or of a judicial tribunal established by law.

With regard to Section 24 of the Act, I submit that it can only be valid to the extent, if any, with which it is consistent with either the 1999 Constitution or the African Charter on Human & Peoples’ Rights- more on this later. As for the Legislative Houses Powers and Privileges Act itself, a brief history is apposite. The Act was enacted in 1953, when Nigeria was still a British colony, sequel to the introduction, in 1951, of regional autonomy and regional legislative houses.

Accordingly, by virtue of Section 315 of the

1999 Constitution, the Act can only be effective to the extent that it’s subject matter is one in respect of which either the National or State Houses of Assembly are competent to legislate upon.

This requirement is satisfied by Item 47 of the Exclusive Legislative List of the Constitution which empowers the National Assembly to regulate it’s own powers as well as the privileges and immunities of it’s members.

A further critical test is that the Act - or any other piece of legislation apart from the Constitution - must not be inconsistent with the African Charter on Human & Peoples’ Rights as enshrined in the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act, 1981. This was laid down by the Court of Appeal in IGP vs ANPP (2007) 18 NWLR pt.1066 page 457 @ 500C, per Adekeye, JCA (as he then was). I submit that Section 24 of the Legislative House (Powers and Privileges) Act fails this particular test. This is because, in my view, those provisions of the Act are inconsistent with the right to equal protection of the law under Article 3(2) of the African Charter.

The Court of Appeal examined the scope of this right in N.N.P.C v FAWEHINMI (1998) 7 NWLR pt.559 page 598 @ 616. Before looking into that decision in greater detail, let us pause to refer to the definition of the right in BLACK’S LAW DICTIONARY, 8th edition, at page 577: “equal protection of the laws demands that laws will only be legitimate if they can be

CONTINUED ON PAGE 7

Legal Personality of the Week Sola Ephraim-Oluwanuga

‘A Lawyer Must Develop the Requisite Patience and Skill Attendant to his Chosen Area of Law’ I was called to the Nigerian Bar in 1986 after concluding my law degree at the University of Ife (now OAU). I have since acquired Masters in Law (UI Ibadan) and African Law (Institute of African Studies and Peace and Conflict Studies (UI Ibadan). I also have a certificate in Negotiation and Settlement Advocacy from the Strauss Institute of Dispute Resolution, Pepperdine University Malibu, CA USA. I am a Fellow and Tutor of the Chartered Institute of Arbitrators UK. I am an Arbitrator, mediator and a practising Lawyer.

I have also made forays into the Protection of Shareholders Rights as Chairman of Investors Association covering about Seven (7) states in the South west and Northern central part of the country. I have cognate experience in the Capital markets having served as shareholder activist; a judge or arbitrator in the market as a foundation member of Investments and Securities Tribunal (IST); a capital market solicitor.

I have been involved in several initiatives regarding the drafting of the code of Corporate Governance in Nigeria, Ghana and Kenya amongst others. I was a scholar of the International Corporate Governance Network ICGN (UK) and I was the Vice Chairman (Africa) of the International Bar Association (IBA) Section on Mediation.

In pursuance of my other interests, I am a Director and member of the Board of Trustees in Private Profit and Non for profit organisations. I have also served as Chairman and member of several audit committees in Public quoted companies. I am a member and Tutor of Institute of Directors among others. Finally, I am a member of the National Institute for Policy and Strategic Studies, Kuru Jos. Senior Executive course (SEC) 31, 2009.

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

Handling the various dilatory strategies in the court system for me is a challenge. It affects every aspect of the profession including the perception of clients who expect expeditious service. When they do not get it they are not happy. Attempts to explain to them that these things are not your fault are sometimes not understood.

Secondly, Reconnecting with the profession after

because it was a criminal matter. I still recall this interjection. I ended up defending the accused and got him off on a charge of armed robbery but that probably defined my practice area as I unconsciously tended towards commercial and corporate practice thereafter.

Another event that came to mind out of several is our award or decision of the IST in respect of Bonkolans case. This decision was in connection with cloned share certificates. It marked a watershed in the capital market and assisted in sanitising the market. I saw myself as well as other members of the tribunal, as crafting capital market jurisprudence in the sector. We went ahead to give a number of landmark decisions which formed the bedrock of the market and assisted in the legislation of the Investments and Securities Act 2007.

Sola Ephraim-Oluwanuga

service in Government as a member of the IST was a challenge. I had to change my mind set from the conservative and unassuming nature of an impartial arbiter to the aggressive and eye for an opportunity for brief required of a private legal practitioner.

What was your worst day as a lawyer?

The day I appeared against a colleague who was acting for himself. He was so emotional that he saw a number of steps and strategies adopted by me, as being against him personally.

He decided to cast aspersions on me. Even in my Defence, he alleged that I was unprofessional because as expected he did not agree with me.

The court took what he said with a pinch of salt.

But I felt very sad and unhappy. I therefore saw that in a case where you are personally involved it is better to engage independent counsel.

What was your most memorable experience?

I have had several. - When I took my first brief and was called from the village to hands-off

Who has been most influential in your life?

Several people have been influential in my life depending on the area of influence being contemplated. In my Capital Market/ Corporate Governance practice which later defined my area of focus and niche, I was influenced by Oba O. Otudeko CFR. He introduced me to the sector and actually mentored me. I recall all his tips and guidance with respect to the protection of the Rights of Nigerian Shareholders and the need for the institution of good Corporate Governance in corporate democracy. This direction lit up my foray into the law relating to Investments and Securities and accompanying progress made in the sector.

In Arbitration, I had my initial exposure from Late Justice Kayode Eso, who encouraged me to serve as a pupil in a few Arbitrations I witnessed him handling.

In Law practice, I was influenced to take a closer look when I did my Law office attachment at Rotimi Williams Chambers as a law school student and worked as an external junior associate observing Chief Afe Babalola SAN. His positive comments about me always spurred me on in the path of continuous professional growth. All these people contributed to my world view in this profession and I do appreciate their influence and celebrate them.

Why did you become a lawyer?

Law for me was a natural occurrence. I had one of the best result during the mock exam in the Art class in secondary school. I also had a Grade 1 Distinction in my WAEC Exam at C.M.S Grammar School, Lagos. Furthermore, I enjoyed defending the under-dog and promoting the rights of others.

This passion translated into my studying Law and in the early days of my practice ensured my promoting and defending Investors’ rights. Further still, I also had a brother and a brother – in- law who were lawyers and I was encouraged by them.

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

A person wanting a successful career in Law must have or develop a passion for the profession.

He has to define the areas of Law he wants to be specialised in as Law is now becoming so wide a profession that it admits of specialisation. The person must develop the requisite patience and skill attendant to his chosen area of Law. It is also good sense to associate with others to build a structure for economies of scale and ensure ones concentration on an area of professional interest.

If you had not become a lawyer, what would you have chosen?

If I had not become a lawyer I would possibly have become an Accountant as I had to terminate my pursuits of accountancy at Ogun State polytechnic where I was for a few months before the JAMB result was released. I also fancied Business administration.

Where do you see yourself in ten years?

In 10 years, I see myself concentrating on my chosen niche which is Arbitration. I should be among the top Arbitrators in the continent and entire world. I should be involved in a conglomerate of firms coming together where one is able to concentrate on an area of specialisation as opposed to general practice of Law. There are other things I would like to do which is not yet for public consumption. I trust God to help me as the Psalmist wrote; ' I look up to the hills from whence cometh my help, my help cometh from God’, who made heaven and earth.

6/

23.08.2016

Access to Quality Justice in Nigeria Fidelis Oditah

T

o many “Access to Justice in Nigeria” might seem oxymoronic. In Nigeria, the problem appears not to be access to justice. The problem is how to exit from justice!

A useful starting point might be to identify some of the key determinants of access to quality justice in any system. Without in any way implying that these are exhaustive, I would suggest the following: Existence of Rule of Law Clarity in the allocation and definition of jurisdiction of courts in a Federal system between Federal Courts and State courts Procedural fairness Quality of institutional capacity (including court staff and infrastructure) Speed with which disputes (civil and criminal) are resolved A reliable and effective appeal system that contains filters for selecting which appeals should go to the Supreme Court A robust regime for the award of adverse and wasted costs An effective judgment enforcement regime If some of these elements are not present, the system cannot be said to afford citizens and other litigants access to quality justice. In Nigeria, it is difficult to say whether there is access to quality justice. It is a notorious fact that in high profile criminal cases, Nigeria has struggled to enforce its criminal laws, which has undermined public confidence in the administration of criminal justice.

The Punch Newspaper Editorial of Monday, 30 November 2015 captured it all: “That lawyers and judges contrive to delay corruption trials, hinder recovery of looted funds and have lost public confidence is well known.

What is urgently required today is the initiation of reforms to identify and punish corrupt judges while building institutional capacity to eliminate the stench from the template.”

There is virtually no example of a politician or wealthy person who has been convicted of corruption in Nigeria. But we know many of them are very corrupt. Why is that?

We have outsourced the trial and conviction of our politicians to the British prosecuting authorities.

A few years ago, James Ibori was discharged and acquitted by a Judge sitting at the Federal High Court, Asaba Judicial Division without taking a plea. On the same information and evidence, James Ibori pleaded guilty before the British Courts without a trial and was sentenced. His solicitor, wife, mistress and sister were also jailed for fraud committed in Nigeria but laundered through the British banking system. Yet no Governor since 2003 has been tried, let alone convicted by a Nigerian court. Bode George that was tried and convicted by a Lagos High Court was acquitted by the Supreme Court. Why did that happen?

And why are some people clamouring for the removal of immunity for sitting Governors when we have shown little political will, prosecutorial or judicial capacity to try the former Governors that no longer enjoy immunity? The National Assembly is now also interested in providing immunity for its principal officers. How low can we fall as a nation?

In contrast with Nigerian courts that have surrendered their judicial powers to politicians, the UK courts have shown how a judiciary should function. The best example of the court’s trial of politicians is perhaps the Members of Parliament expense scam in relation to which a string of MPs have already been jailed following probes into their parliamentary expenses: Denis McShane, a former Labour Europe Minister, was sentenced to 6 months in December 2013 after admitting bogus expense claims amounting to nearly £13,000.

Jim Devine, the former Labour MP for Livingston, was jailed for 16 months in March 2011 for making false claims totalling £8,385 between 2008 and 2009.

In February 2011, Eric Illsley, the ex-Labour MP for Barnsley Central, was jailed for 12 months for dishonestly pocketing more than £14,000 by exaggerating claims relating to his second home in London.

You cannot fail to notice the amounts for which the 3 MPs were sent to jail, £8,385, £13,000 and £14,000 – none was up to N5 million!

Any decent society would be outraged by the

revelation that billions of dollars were stolen by those entrusted with custody of public funds. What about the Malabu scandal, where Government Ministers shared $1 billion paid by Shell as signature bonus, but which the officials recharacterised as settlement payment in respect of oil prospecting licence (OPL) 245?

What is happening in our courts is quite frankly catastrophic and tragic. Only courts of law are vested with the power to try and convict alleged criminals. The courts cannot allow themselves to become the weakest link in the fight against corruption.

Impediments to Quality Justice in Nigeria 1. Delay I have pointed out that the problem in Nigeria is not access to justice, but exit from justice Our civil and criminal justice systems operate at a speed chosen for the convenience of the legal practitioners and defendants (sometimes prosecutors and claimants), rather than for the convenience of the court or the ends of justice.

In practice, the problem is not the existence of useful procedural tools such as adjournments or preliminary objections. The problem is the deliberate abuse of the procedural tools.

It is not uncommon for legal practitioners to go to the court deliberately to seek adjournments, in some cases very late adjournments, for no particularly pressing reason. There does not seem to be any limit to the number of adjournments that may be obtained.

There appears to be few, if any, effective sanctions to ensure that a defendant in civil or criminal proceedings cannot delay and frustrate the proceedings.

2. Allocation of Jurisdiction between Federal and State High Courts Allocation and definition of jurisdiction between the Federal and the State court – section 251 of the 1999 Constitution and its statutory predecessor (section 230 of the 1979 Constitution) has perhaps generated the most litigation in Nigeria Accounts for a significant proportion of appeals Many cases go right up to the Supreme Court before that court decides which court has jurisdiction.

In many cases over 10 years would have elapsed and the applicable limitation period would have expired.

A case is therefore disposed of on jurisdiction and limitation without any regard to the merits Millions of naira are wasted in a fruitless excursion to the Supreme which are irrecoverable, even by the victorious party because our courts refuse to exercise their cost awarding power 3. Misuse of jurisdictional objections Jurisdiction is said to be a threshold issue Partial solution in proceedings begun by originating summons Partial solution in Order 29 of the Federal High Court Rules 2009 – must be raised within 21 days otherwise will be dealt with at the conclusion of trial Neither is effective because of the variety of possible jurisdictional objections and the menace of interlocutory appeals Problem in actions begun by writ Apparently cannot be waived or given by consent Perhaps the single biggest source of interlocutory appeals Does it serve the interest of justice?

4. Misuse of interlocutory appeals Distinction between interlocutory and final appeal The main instrument for the delay and stifling of criminal proceedings in Nigeria is the interlocutory appeal.

It is astonishing that virtually any issue can be taken literally all the way to the Supreme Court provided the appellant can formulate grounds of appeal based upon error of law, regardless of whether the points being appealed involve any public interest.

It is all too easy to dress up factual questions as questions of law.

But even if the law were to allow spurious interlocutory appeals, why should the criminal proceedings be stayed merely because an interlocutory appeal is pending?

The result is that there is a substantial backlog of pending appeals both in the Court of Appeal and the Supreme Court.

In addition to the backlog, our appellate judges do not have the luxury of a calm and considered reflection on the issues under appeal. Excessive workload compromises the quality of the appellate

judgments and the health of the appellate judges.

A recent example is the case of IKECHUKWU v FEDERAL REPUBLIC OF NIGERIA & 2 ORS (2015) 7 NWLR (Pt 1457) 1. In that case (which was commenced in 2011), the FCT High Court granted leave to the Independent Corrupt Practices and Other Related Crimes Commission (ICPC) to prefer charges against the appellant and the 2nd and 3rd respondents. On arraignment, the appellant raised a preliminary objection seeking an order of court to set aside the said leave and to quash the order and arraignment. The objection was based on the ground that the ICPC, being a delegate of prosecutorial powers from the Federal Government could not sub-delegate same to a private prosecutor. The trial court heard and dismissed the application, prompting the appellants to file an appeal. The appellant’s appeal was opposed by the first respondent on the ground that the notice of appeal was not personally signed by the appellant as required by the rules of court. This objection was upheld by the Court of Appeal.

The appellants appealed to the Supreme Court.

The Supreme Court was clearly unimpressed by the seeming ploy by appellant’s counsel to stall proceedings. While delivering the lead Judgement at 14E-G, Nweze JSC noted thus: “So, since 2011, that is for four whole years now, the appellant, through the disingenuous ploy of his counsel, has held up proceedings at the trial court relating to his alleged offences under the Corrupt Practices and Other Related Offences Act.” This view was echoed by Aka’ahs JSC at 24E-B where His Lordship noted that: “It is to be noted that the trial of the appellant is yet to commence. It should become abundantly clear even to the layman that the sole aim of this appeal is to stall and eventually frustrate the actual trial of the appellant. It is in the interest of both appellant and the wider society that his innocence of guilt is established as public confidence in the administration of criminal justice is eroded where those with means or the powerful erect legal bumps in the judicial process to delay justice.”

Section 306 ACJA may solve this problem.

It provides that: “An application for stay of proceedings in respect of a criminal matter before the court shall not be entertained.”

By reason of section 306, applications for stay of proceedings shall no longer be heard until judgment. Further, such applications can no longer operate to stall continuation of trial.

Section 306 has the potential to curb the misuse of interlocutory appeals to scuttle criminal trials.

Can solution be found through soft law, eg Practice Directions?

Attitude of Appellate Courts to interlocutory appeals 5. Obsession with procedure Nigerian law is excessively and destructively procedural – Nigerian civil and criminal justice system is beholden to procedure at the expense of the substance.

Our civil and criminal justice system is obsessed with form rather than substance.

Excessive focus on form over substance, eg if statute provides a particular way of doing a thing no other way is acceptable, signing of processes in the names of law firms, failure to use correct form, etc.

It is self-indulgent and does not serve the needs or interests of users of criminal justice system.

Over 70% of reported litigation is on procedure.

Produces technical, unmeritorious justice Judges fail to see the wood for the tree and see procedure as an end in itself even when no conceivable prejudice could or has been caused and there is no risk of miscarriage of justice.

If an “i” is not dotted and “t” crossed the proceedings are defective because a condition precedent to the assumption of jurisdiction has not been satisfied.

No matter how much time, energy and resources has been spent on the trial, it will be set aside.

A lot of the senior SANs whom high profile criminals patronise do not prepare for trial. They are specialist on procedure and procedural objections and scuttle criminal proceedings and swell the ranks of their clientele!

Solution – anti technicality provisions: effect of non-compliance with rules, eg Order 51 of the Federal High Court Rules 2009.

6. Defective system for the appointment

Chief Justice of Nigeria, Hon. Justice Mahmud Mohammed

of Judges Excessive lobbying for appointment to the Bench has meant that merit has been largely surrendered to patronage.

It is not unusual for Chief Judges of State High Courts to ask Governors for nomination of candidates for appointment as Judges.

Serving Judges lobby for promotion to the higher Bench.

Judges nurture unnecessary social relationships because they believe they need such relationships to progress on the Bench.

Senior Judges ask lower court Judges to throw cases as favour These make it all but impossible for the Judges to be independent or impartial.

What is required is a merit based and rigorous selection process.

8. Appeals Appellate courts perform registry function in open court Shows failure of administration Why can’t court staff contact counsel and ensure that case files are ready for argument before the date fixed for appeals Absence of filters for determining which decisions should be appealable. Should every decision be appealable Should permission be introduced in all civil cases and some criminal cases?

9. Costs in civil litigation Role of costs in civil litigation Incentives?

Basis for assessment Are costs awards realistic?

Wasted costs In any rational system of civil procedure, adverse costs orders are the principal deterrent against abuse of procedures.

In addition, the successful party should recover his costs (or a substantial proportion thereof) from the unsuccessful party.

The threat of adverse costs can induce parties to settle their proceedings either without recourse to the courts or without a trial.

Unfortunately, although our courts have powers to award costs, surprisingly they have exercised the powers almost without exception in a manner which not only encourages wasteful and irresponsible conduct of litigation, but also appears to penalise the successful party by awarding what can fairly be described as nominal costs.

The result is that quite often a successful party can only claim a pyrrhic victory. This calls into question the proper function of an award of adverse costs in civil litigation.

I believe that no matter how detailed our civil procedures rules are or become and no matter the spirit in which the rules are applied and administered, unless proper costs orders are made, we cannot achieve any appreciable improvement in our civil justice system.

There are two aspects of costs that I would like

CONTINUED ON PAGE 13

23.08.2016

/7

Limits of Powers of the Legislature in the Budgetary Process Somina Peter JohnBull

T

he topical issue in Nigeria today, is the allegation and bickering in the House of Representatives by the former Chairman of the House Committee on Appropriation, Dr. Abdulmumin Jubrin, that some principal officers of the House, padded or in his words “inserted” certain items into the 2016 budget. It would be recalled that the allegation of “padding” dogged the 2016 budget which resulted in the President not signing same and it was returned to the National Assembly, to be revised.

As expected, this allegation has elicited various comments and commentaries. Majority Leader of the Senate, Senator Ali Ndume, in a Press Release on the 28th of July, 2016 stated that the budget could not have been padded, as the Legislature has the powers to “add, subtract and adjust”.

This view seems to have adherents. There is however a contrary view.

The limits of powers of the Legislature over the budget was on the front-burner of Executive and Legislature’s interaction during the days of former President Yar’Adua, who once threatened to institute an action in Court. Unfortunately, this threat was not carried out and the non-resolution has contributed to the present impasse.

This present intervention, is to look through the pages of the Constitution in resolving the contending positions. We would not determine the substance of the allegation, as such a milder term, insertion would be preferred. Thus, we propose to examine, whether under the Constitution, the Legislature can insert items, into the budget proposal or estimate when same is laid before it. We shall utilise the provisions as applicable to the National Assembly, which is im pari with that of the State Houses of Assembly.

We shall however preface our contribution by restating some canons, which are relevant in the interpretation of the Constitution. The provisions of a constitution, like any other statute, should be read holistically and not in piece-meal. This ancient rule was first espoused in LINCOLN COLLEGE case (1595) 3 Co. Rep. 581. In enumerating, the twelve (12) rules of interpretation of the Constitution, the Supreme Court per Obaseki, JSC in AG BENDEL STATE v AG FEDERATION (1981) 12 NSCC 314, stated that any exercise of power must be traced to the Constitution. It is also relevant that certain fundamental principles underlying the Constitution, be respected in interpreting the Constitution. It is beyond doubt that the principle of Separation of Powers is part and parcel of the distribution of powers in Nigeria.

The Supreme Court in ADEYEMI v AG OYO STATE (1984) NSCC 397, held that implication of the doctrine of separation of powers means that neither the Legislature, the Executive, nor the Judiciary should exercise the whole or part

National Assembly in session

of the powers of another arm. In KADIYA v LAR (1983) 11 SC 209, Irikefe, JSC held thus; The doctrine of separation of powers is the bulwark or anchor on which the survival of this nation as a nation must depend. While each arm of Government must need respect the other arm in the interest of the smooth running of governmental machinery, such respect must never degenerate to the level of one arm being allowed to usurp or impinge on the exclusive domain of the other as spelt out in the Constitution It is against the backdrop of the above, that we shall examine the powers of the Legislature.

Powers of the Legislature Under the Constitution of the Federal Republic of Nigeria, 1999 (as amended), (hereinafter referred to as the 1999 Constitution), there are principally two (2) major powers donated to the Legislature.

The first is, the power to make law, which is contained in Section 4 of the 1999 Constitution and the second, is the power to approve proposal of expenditure from the Consolidated Revenue Account by the Executive.

Power to make law By the provisions of Section 4(2) of the 1999 Constitution, it is expressly stated that the National Assembly shall have power to make laws. The implication is that the National Assembly, would have the power to tinker, insert, add, delete or even modify any bill presented to it in furtherance of its powers to make laws. This is because, it is essentially the power of the Legislature to make the law.

However, we submit that this is only valid, with respect to making laws and does not extend to other powers which might be donated to the National Assembly by the Constitution.

Power to Approve Proposal of Expenditure The power of the National Assembly to approve proposal of expenditure by the Executive, is not

derived from the general powers of making law but is specifically donated by the Constitution in Sections 80 and 81 of the 1999 Constitution. To that end, it is submitted that the maxim expressed in latin thus, expressio unis est exclusion alterius, becomes applicable.

Thus, in the consideration of powers to approve expenditure, the general powers of the National Assembly, would be subjugated and the express provision of Section 81 of the 1999 Constitution would be the cynosure of all eyes. Section 80(2) of the 1999 Constitution reads thus; No moneys shall be withdrawn from the Consolidated Revenue Fund of the Federation except to meet expenditure that is charged upon the fund by this Constitution or where the issue of those moneys has been authorised by an Appropriation Act, Supplementary Appropriation Act or an Act passed in pursuance of section 81 of this Constitution. (emphasis supplied) It is instructive to note that the operative power of the National Assembly exercised, is to authorise and that is what the Appropriation Act or any other passed is limited to doing. Section 81 of the 1999 Constitution, states that it shall be the responsibility of the President to cause to be prepared and laid before the National Assembly, estimates of revenues and expenditure of the Federation for the following financial year.

While, it is settled law that explanatory notes of statutes are generally not considered as aids of interpretation, it is nonetheless permissible in considering the general purpose of the statute by resort to the explanatory, side or head notes in mind. So held the Courts in the cases of CHANDLER v. DPP (1964) AC 763 @ 789, STEPHEN v CRUCKFIEL RURAL DISTRICT COUNCIL (1960) 2 QB 373 @ 383, UWAIFO v. AG. BENDEL (1982) NSCC 221 per Idigbe, JSC @ 242. The explanatory note of Section 81 reads thus; “Authorisation of Expenditure from Consolidated Revenue Fund”

Thus, it is the President who shall prepare the expenditure. The power of preparing what should be the expenditure for the next financial year is not shared jointly with the National Assembly.

What the National Assembly does is merely to authorise, nothing more. To authorise cannot be extended to include “insertions unilaterally done by the National Assembly”. Sadly, the proponents of the view of the National Assembly as having power to make insertions, have not pointed to any constitutional stamp of approval justifying same. We have looked through the pages of the Constitution and cannot find any power.

The question that would then be asked is “quo warranto”?

To the extent that these insertions were not prepared and laid before the National Assembly by the President, it is our respectful view that they amount to usurpation of the powers of the President, which infringes the principle of separation of powers. As stated by Irikefe, JSC, separation of powers does not allow an arm of government, to impinge the powers of another.

We are not advocating that the National Assembly, is a mere rubber stamp. That is not the intendment of the Constitution. It is important to note that what the National Assembly can do is either to authorise or withhold authorisation. It is not to modify, alter, substitute or remake. That is not authorisation, it amounts to preparation, which is the function of the President. If there are duplications of items, in expenditure proposal, the National Assembly can authorise one and withhold authorisation for the other duplicated items. It is not the work of the legislature to remove the other duplicated items and insert new items into the Budget.

Some Legislators have contended that as representatives of the people, they are better placed to know the projects which would be beneficial to their constituents. This thought, with respect is flawed. In Nigeria, we do not practice Parliamentary System but a Presidential system. The powers of deciding projects which are captured as expenditure inure in the Executive.

Thus, the chief responsibility of the Legislator, is not to determine what project should be alloted to his constituency. The Legislator is representative of his constituency, in the formulation of laws and not in exercise of Executive powers, save to utilise the power of impeachment where there is abuse. The best a Legislator can do, is to leverage on his position to lobby the Executive, to include projects for his Constituency at the stage of preparing the budget estimate.

A Legislator, cannot wait for the President to prepare and lay a project before the National Assembly and then within the recesses of the hallowed chambers or in the conference rooms of the National Assembly, insert items of expenditure which were not prepared by the President. This would be contrary to the power to authorise and is ultra vires the Constitution.

Somina Peter Johnbull, is a lawyer based in Yenagoa and Partner at Somina & Gibson Associates.

THE LIMITS OF LEGISLATIVE POWERS– SHOULD CRITICISM OF A LEGISLATIVE HOUSE BE ACTIONABLE DEFAMATION? CONTINUED FROM PAGE 5 described as just and equal . . . equal protection guarantees that the government must treat a person or class of persons the same as it treats other persons or classes in like circumstances . . . equal protection means a legislation that discriminates must have a rational basis for doing so. And if the legislation affects a fundamental right or involves a suspect classification, it is unconstitutional unless it can withstand strict scrutiny” How, then, does Section 24 of the Legislative Houses (Powers and Privileges) Act violate the right to equal protection of the law? I submit that the answer to this question is in the dictum of the Court of Appeal in NNPC vs FAWEHINMI, supra, where it held, per Ayoola, JCA (as he then was), at page 615 of the report, thus: “Although Article 3 of the Charter appears general and absolute in its terms, the rights of equal protection of the law which it recognises must be understood as ‘equality among equals’ . . .

The guiding principle is that all persons similarly circumstanced shall be treated alike both in

privileges conferred and liabilities imposed . . . what it forbids is discrimination between persons who are similarly in similar circumstances. It does not forbid different treatment of unequals.

The rule rather is that ‘like should be treated alike and that unlike should be differently.”

It is elementary that by virtue of Sections 4, 5 and 6 of the Constitution, the Legislature is just one of three co-equal arms of Government, the other two being the Executive and the Judiciary.

No arm is superior to the other(s). In other words, they are all similarly circumstanced. To that extent, they must be treated alike, and it violates the right to equal protection of the law for any statute to confer a privilege or impose a liability on any of them to the exclusion of the other(s). I submit that this is precisely what the National Assembly has done (or is deemed to have done) vide Section 24 of the Legislative Houses (Powers and Privileges) Act. The reason is clear : none of the other two arms of government – the Judiciary nor the Executive – enjoys the privilege of exposing

its critics to penal sanctions by legislative fiat, except of course, the inherent powers of a court to punish for contempt, under Section 6(6)(a) of the Constitution. I am not aware that any member of the Executive, at any level, either the President, the Vice-President, Governors, Deputy-Governors or any of their subordinates, enjoys this privilege, simply for belonging to that arm.

That being the case, I submit that Section 24 of the Legislative Houses (Powers and Privileges) Act smacks of legislative arrogance, as it seeks to muzzle the right to Freedom of Speech and expression enshrined in Section 39 of the Constitution. Even though this right is not absolute (as it can be derogated from under Section 45(1) of the Constitution), I hasten to add that the circumstances for such derogation (‘the rights and freedoms of others, public safety, public order, public health’, etc.), do not exist in relation to Section 24 of the Legislative Houses (Powers and Privileges) Act. This is because, in my view, whatever rights Legislators may

attach to their reputation inures to them ex officio, i.e., by virtue of their status as such, which status (as members of one of the three arms of Government), they share co-equally with the members of the other two arms of government, as aforesaid.

Conclusion I submit that it is self-serving conceit for the National Assembly to shield itself from criticism in a way that violates the right to equal protection of the law under Article 3(2) of the African Charter on Human & Peoples Rights. To the extent that Sec. 24 of the Legislative Houses (Powers & Privileges) Act purports to do that, I submit that it is not reasonably justifiable in a democratic society as to be considered a derogation from the fundamental right to freedom of speech guaranteed under Section 39 of the 1999 Constitution. Accordingly, in my view, it is ultra vires, invalid, null and void.

Mr. Abubakar Sani, a constitutional lawyer writes from Kano.

8/COVER

23.08.2016

Mike Igbokwe SAN PHOTOS: Sunday Adigun

‘Revenue from the Maritime Sector Can Surpass Earnings from Crude Oil’ Unarguably, the Maritime Industry is a sector in the Nigerian economy with huge untapped potential.

However, it is challenged by poor infrastructure, inadequate funding, imprecise policies and several pending laws. Mr. Mike Igbokwe SAN, a maritime law expert has over the years championed the cause of bringing the Nigerian maritime sector up to international standards, despite these challenges.

In his discourse with May Agbamuche-Mbu and Tobi Soniyi, he addressed his appointment as Africa’s Regional Representative for the International Bar Association (IBA) Maritime and Transport Law Committee and explored his vision to ensure that the Cabotage Act which he worked on is reviewed.

T

he Maritime Industry is crucial to Nigeria’s economy, as an oil producing country which relies heavily on imported goods. In your opinion what steps can be taken by the government to unlock the potential in the sector to encourage

economic growth?

The maritime industry is crucial to the importdependent economy of oil producing Nigeria in that it provides the means for the transportation of passengers, exportation of crude oil, agricultural and

finished products, importation of raw materials, equipment, petroleum products, finished goods etc.

The maritime industry is also crucial to Nigeria’s economy because it facilitates trade and commerce, promotes tourism, creates employment opportunities, generates revenue and develops related economic activities and industries, maritime institutions and infrastructure, apart from national pride and defence and security. For emphasis, in these days of the drop in Nigeria’s revenue from crude oil, if well developed, the maritime industry is capable of generating trillions of US Dollars and Naira revenue for the Government through imports and export duties, registration fees on ship ownership and mortgages, taxes,

levies paid to its maritime Agencies apart from other contributions to gross domestic product.

In my opinion, the steps that can be taken by the Government to unlock the potential in the maritime sector to encourage economic growth should include creating the enabling environment for the indigenous shipping industry to develop and play its expected role in the economy. The government can do this in several ways but I would mention a few. The National Assembly should quickly pass all the Bills concerning the maritime industry which have been with it since the previous Administration. Some of these Bills are the National Transport Commission Bill, Ports and Harbours Bill, Cabotage Act (Amendment)

Bill and the Sea Carriage Bill.

The Government and its Agencies should implement to the letter, the provisions of the legislations on the maritime industry, the maritime Agencies and the supervising Ministry in particular should be allowed a free hand devoid of political interference (but subject to regular monitoring of performance), to perform their statutory duties and implement maritime laws which include the Cabotage Act, Nigerian Maritime Administration and Safety Agency (NIMASA) Act, Merchant Shipping Act. For instance, some of the statutory functions of NIMASA under its enabling Act enacted by the National Assembly in 2007 are to develop shipping and regulate

23.08.2016 "FOR EMPHASIS, IN THESE DAYS OF THE DROP IN NIGERIA’S REVENUE FROM CRUDE OIL, IF WELL DEVELOPED, THE MARITIME INDUSTRY IS CAPABLE OF GENERATING TRILLIONS OF US DOLLARS AND NAIRA REVENUE FOR THE GOVERNMENT THROUGH IMPORT AND EXPORT DUTIES, REGISTRATION FEES ON SHIP OWNERSHIP AND MORTGAGES, TAXES, LEVIES PAID TO ITS MARITIME AGENCIES APART FROM OTHER CONTRIBUTIONS TO GROSS DOMESTIC PRODUCT" merchant shipping and seafarers, develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure, to enforce and administer the provisions of the Cabotage Act, provide Maritime Security, establish and register, train and regulate maritime labour. The NIMASA Act also empowers the Hon. Minister of Transport on the recommendation of NIMASA, to grant ‘national carrier’ status to a shipping company with 60/40 Nigerian/foreign ownership, with headquarters in Nigeria, operating a vessel of not less than 5,000 gross tonnage on an international route (and not cabotage route), registered in Nigeria, with 100% Nigerian crew and 75% Nigerian shipboard officers. This will enable such a ‘national carrier’, shipping company to have exclusive rights to the carriage of export and import cargo belonging to the Federal, State and Local Governments and their Agencies and have the right to participate in the carriage of not less than 50% bulk dry cargo or liquid cargo and of cargo generated through technical assistance or international aid.

NIMASA shall determine an efficient strategy for the participation of national carriers in the carriage of crude oil and petroleum products to and from Nigeria. The NIMASA Act also created a Maritime Fund to be funded with not less than 25% of its revenue, to promote the development of indigenous shipping and shipping infrastructure in Nigeria the beneficiaries of which shall be Nigerians and Nigerian companies and give not less than 5% of its revenue to the Maritime Academy of Nigeria. Under the Cabotage Act, the Cabotage Vessel Financing Fund into which a surcharge of 2% of contract sum performed by any vessel engaged in cabotage is paid, had been created since 2003 to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in coastal trade and to be administered by NIMASA. I am of the view that the Legislature made all these provisions because it recognised that for any Nigerian shipowner to be interested in investing in the maritime industry and to thrive in it, there must amongst other things be availability of cargo, trained and competent seafarers and ship finance with low interest rates, and that there was a need for any ‘national carrier’ to participate in the carriage of crude and petroleum products to and from Nigeria under an efficient strategy determined by NIMASA which Nigerian shipping companies had for a long time been seeking to participate in. So, I am of the opinion that if the Government and its Agencies implement these and other provisions of our maritime laws relating to the growth of the Nigerian maritime industry, the potential in the sector can be unlocked to encourage economic growth.

Last year you were appointed as the International Bar Association’s Regional Representative for Africa. How does membership of the IBA enhance the practice of law in individual African Nations and what does your role entail?

Yes, last year I was appointed the Africa Regional Representative of the IBA’s Maritime and Transport Law Committee. As you know, the IBA established in 1947 is the global voice of the legal profession, comprising two groups (Legal Practice Division and Public and Professional Interest Division) covering all practice areas and professional interests giving its members access to immense up to date information resources and resource persons that are leading experts in their areas of legal practice. Therefore, the membership of the IBA enhances the practice of law in individual African Nations because amongst other things, it provides any African member of IBA unlimited access to information in different areas of legal practice especially those

COVER/9 with international bearing, provides opportunities to its members from individual African nations to update their knowledge and understanding of developments of law in other foreign jurisdictions, self-development and exchanges in legal knowledge in especially international law and the municipal laws of other jurisdictions which can influence legislative advocacy for the modernisation and updating of municipal laws in African countries and opportunities for international or global networking which provides personal contacts and friends that can be used where necessary to enhance knowledge, international peace and friendship and work for clients in other jurisdictions where the contacts are based. The experience garnered from IBA membership can also be useful in the development of local Bars in Africa. IBA also supports and develops national Bar associations, supports the right of lawyers to practise their profession without interference, human rights for lawyers and the independence of the judiciary.

You are aware that the current organisation of the Nigerian Bar Association into groups and Committees is modelled after the organisation of the IBA and this has made a lot of difference in our NBA in enhancing the practice of law in Nigeria.

The Maritime and Transport Law Committee is made up of top maritime law professionals who meet, create connections and discuss the most current legal issues and developments in maritime and transport law at the annual conferences of the IBA and its half-yearly seminars in different maritime cities. It cooperates with other organisations in the maritime law area such as Comite Maritime International, International Maritime Organisation Legal Council, and maritime law societies in different parts of the world for the unification of maritime and transport law. The gains of membership of this Committee include augmenting the knowledge of maritime and transport issues throughout the world; improving client’s advice and fellowship with maritime lawyers and acquaintance with other competent specialists. My role as its Africa Regional Representative entails working for and promoting the aims of the IBA and the Committee and these gains in Africa and encouraging African maritime and transport lawyers to join the Committee and IBA so as to benefit from these gains too and acting as the Committee’s ‘ambassador’ to African countries apart from representing Africa in the Committee to reflect its interests and situations. There is more information on IBA and its Committees at www. ibanet.org Stakeholders in the Maritime sector have expressed concerns over its current legal framework. Do you believe these concerns are justified especially in light of the systematic abuses of Environmental laws and the Coastal and Inland Shipping (Cabotage) Act 2003?

What is your assessment of the regulatory regime in the Maritime Sector?

I believe the concerns are justified to the extent that the maritime sector’s current legal framework is either out-of-date or insufficient or not fully implemented to enable it actualise it’s potential. Can you imagine that many years after the ports were concessioned, the intended legal framework for their regulation has not been enacted into an Act? I had stated earlier some of the maritime Bills that were not passed by the last National Assembly. You would recall that towards the tail end of the last National Assembly its Senate rushed the passing of about 300 Bills that one began to ask why it had to wait till the last minute to rush the passing of the Bills but

they are yet to be enacted into Acts today. Also, some vital maritime treaties which Nigeria had signed or ratified several years ago including the 1988 Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation and the Protocol of 2005 (which would have been used to counter piracy and armed robbery at sea that has been ravaging the maritime sector for long), are yet to be domesticated by the National Assembly. You know that I drafted the Piracy and Unlawful Acts and other related offences Bill with the technical assistance of the International Maritime Organisation for NIMASA and inputs of maritime stakeholders at public hearings in Lagos and Port Harcourt, but it is yet to be enacted into an Act. It must be noted that the maritime sector is not a local sector and that it is heavily affected by international law and treaties. I wish that members of the All Progressives Congress in the National Assembly and the Peoples Democratic Party at its national and local levels would quickly overcome or put aside their internal wrangling and settle down to law-making business that would lead to the quick passing of these Bills in order to facilitate the development of the maritime sector and its role in the Nigeria’s economy and help President Buhari to move that sector and this country forward. Therefore, my assessment of the regulatory regime in the maritime sector is that it is insufficient and out of date in some areas and requires urgent updating and enactment of the pending Bills and full implementation of the current Acts without political interference.

You were part of the team that worked on the enactment of the Cabotage Act 2003.

In practice certain sections of the Act such as the provisions concerning waivers has greatly subverted its primary objective of encouraging Nigerians to participate effectively in the maritime sector. What is your overall assessment of the Act? Before concluding that the waiver provisions of the Cabotage Act have greatly subverted its primary objective of encouraging Nigerians to participate effectively in the maritime sector (which I do not agree with but I disagree with the implementation of the waiver provisions), it is necessary to understand why there are waiver provisions in the Act. At the time of choosing between the liberal and rigid cabotage principles, it was realised from the cabotage report I did for the then National Maritime Authority (now NIMASA) that caused me to visit Malaysia to study its liberal cabotage policy, that Nigeria could not beneficially implement the rigid cabotage policy whereby only ships wholly owned and wholly manned by Nigerians and built in Nigeria

"THE NATIONAL ASSEMBLY SHOULD QUICKLY PASS ALL THE BILLS CONCERNING THE MARITIME INDUSTRY WHICH HAVE BEEN WITH IT SINCE THE PREVIOUS ADMINISTRATION. SOME OF THESE BILLS ARE THE NATIONAL TRANSPORT COMMISSION BILL, PORTS AND HARBOURS BILL, CABOTAGE ACT (AMENDMENT) BILL AND THE SEA CARRIAGE BILL"

could take part in cabotage trade. It was also appreciated that if the rigid cabotage policy was enacted, Nigeria could be shooting itself in its legs especially in the oil and gas sector (the mainstay of its economy) where some of the ships operating there are not fully owned, fully manned by Nigerians or (cannot be) constructed in Nigeria. In fact, there were those who were of the view that the Cabotage Act should not be passed because Nigerians did not have the capacity to meet the requirements of a rigid cabotage regime. So, the liberal cabotage regime allowing waivers was opted for and enacted so as to allow foreign-owned vessels where there is no vessel wholly-owned by Nigerians that is suitable and available to provide the services or perform the activity, allow foreign seafarers where there is no qualified Nigerian officer or crew for a specified position and allow a foreign-built vessel where there is no Nigerian shipbuilding company with capacity to build the particular type and size of the vessel specified in the application for waivers.

However, the Cabotage Act and the Ministerial Guidelines on the Implementation of the Act, allow the Minister to renew the grant waivers of any of the 3 of (the 4) conditions of 100% Nigerian ownership, manning and local construction of the vessels after one year subject to proof of improved level of compliance with the requirements of the Cabotage Act on manning, ownership and shipbuilding requirements. As stated in a chapter (Cabotage Bill: Reasons for Ministerial Waivers) in my book titled ‘Nigerian Cabotage Policy and Law: The Case and Advocacy’, the waivers were to ensure that there were no vacuums created by the application of the cabotage regime under the Cabotage Act on account of a lack of local capacity and technology to build, own and man cabotage vessels that will engage in activities or provide the services which will be available due to the restriction of foreign owned and foreign built vessels and foreign seafarers because such a vacuum would be counter-productive and have adverse effect on the development of the maritime sector and the economy. So, the waiver provisions being conditional and limited to one year though renewable, are not permanent but meant to be temporarily allowed as Nigerians build and or acquire the capacity and capability to fill the vacuum in the ownership, manning and construction of vessels. The Cabotage Act has a lot of provisions giving incentives to Nigerians to participate effectively in the maritime sector.

In my overall assessment of the Caboatge Act, I would like to borrow a part of what I wrote in the chapter of my book on cabotage titled ‘The New Cabotage Act-Its intended Effect on the Local Shipping Industry’. I had written that it instituted a “liberal protectionist maritime industry; for the protection or resuscitation of the local shipping industry from death or incapacitation due to the domination of carriages from point to point within Nigerian waters and unhealthy competition by the highly subsidised foreign vessels. In this regard, the Act sees the local shipping industry as a strategic industry which being in its ‘infant’ stage of development and not being in control of indigenous shipping operations, navigation and ship ownership, in the interest of Nigeria’s economy and national security, requires some guidance, conducive environment and protection from foreign competition so as to be nurtured into maturity and given room to develop through its acquisition and building of the necessary capacities to become sufficiently commercially viable and strong and viable. Thus, the local shipping industry will be able to control and become very strong in domestic shipping before venturing into regional or international shipping where it will then be able to withstand competition from the highly subsidized foreign ships in international shipping.” Even though the benefits of the Act are yet to be fully realised by the Nigerian maritime sector due to some factors including political interference, a lack of manpower and political will and determination to implement the provisions to the letter, the Act is still the right step in the right direction of development the indigenous ownership, crewing and building of ships and the local shipping industry as a whole. In two papers I delivered previously on the assessments of the Act after 3 and 5 years of its operation, I had maintained the same position.

The Cabotage Act was passed, among many other reasons, to ensure Nigerian participation in the Maritime industry. Today, over a decade on that objective is yet to be practically realised given the limited participation locally or internationally should there be a new policy approach to the Maritime industry?

No, I do not think that the objective of the Act is yet to be practically realised but I would say

CONTINUED ON PAGE 10

10/COVER

23.08.2016

‘REVENUE FROM THE MARITIME SECTOR CAN SURPASS EARNINGS FROM CRUDE OIL’

CONTINUED FROM PAGE 9

"SOME VITAL MARITIME TREATIES WHICH NIGERIA HAD SIGNED OR RATIFIED SEVERAL YEARS AGO, INCLUDING THE 1988 CONVENTION FOR THE SUPPRESSION OF UNLAWFUL ACTS AGAINST THE SAFETY OF MARITIME NAVIGATION AND THE PROTOCOL TO IT OF 2005 (WHICH WOULD HAVE BEEN USED TO COUNTER PIRACY AND ARMED ROBBERY AT SEA THAT HAS BEEN RAVAGING THE MARITIME SECTOR FOR LONG), ARE YET TO BE DOMESTICATED

BY THE NATIONAL ASSEMBLY" that its objectives are yet to be fully realised. I also do not think that the solution to realising the objectives of the Act is to have a new approach to the maritime industry. Rather, it is by discovering why such a well-thought out Act has not fully impacted the local maritime industry and change and remove those reasons. I had mentioned some of the reasons as including political interference, a lack of manpower and political will and determination to implement its provisions to the letter. At the recent Seminar of our Nigerian Maritime Law Association we were informed that the Cabotage Vessel Financing Fund was intact. I am of the view that the Fund should immediately be disbursed to eligible Nigerian shipowners that have met the requirements of the Act and the Regulations so that Nigerian tonnage and shipping would benefit and grow. If after its full implementation, the maritime sector does not fully benefit and acquire the missing or insufficient availability, capacity and qualification, I would be the first person to ask for its repeal for failing Nigerians.

In assessing the Maritime industry’s regulatory regime it is inevitable that the Nigerian Maritime Administration and Safety Agency (NIMASA)’s progress in that regard comes into view. There is an opinion, in light of the Agency’s recent history, that it has grown too big to manage transparently and efficiently.

Do you share that opinion?

No. I do not share that opinion. The legislative intention behind creating NIMASA and giving it the roles it is playing were well thought out and in line with current best global practices so that maritime policy formulation and execution are streamlined for quicker, clearer, more focussed, cost-saving, effective maritime safety and administration and duplications and overlapping functions of maritime Agencies avoided. NIMASA today and as you can see from Section 1(2) of the NIMASA Act, 2007 is the result of the merger of the former National Maritime Authority and the former Joint Maritime Labour Industrial Council (JOMALIC), the abolition of the Office of the Government Inspector of Shipping and the transfer of his functions and powers to NIMASA in order to create a single maritime safety and administration agency as advocated by me in my paper titled: “The Proposed Merger of JOMALIC With NMA for a New Maritime Safety Administration: Advantages to the Nigerian Maritime Industry”.

See it at www.mikeigbokwe.com. In that paper I had advocated for and shown the advantages of the merger as including consolidating our maritime laws, eliminating duplication and multiplicity of agencies and functions, eliminating or reducing administrative costs and waste, updating the empowerment of agencies to strengthen the enforcement of maritime safety and environmental pollution regulations and laws, enhancing unity for stronger and more efficient enforcement of maritime pollution and safety laws and making Nigeria fully IMO-compliant. I had also argued that similar Agencies existed in the USA, Singapore, UK and Denmark. So, NIMASA is not, and has not grown, too big to be managed efficiently and transparently. In line with my paper, the National Assembly has given statutory regulatory, safety and administrative functions and powers in respect of the maritime industry to NIMASA in its Act, Merchant Shipping Act and Cabotage Act etc that no other maritime Government Agency has.

We should not draw the hands of the clock backward by splitting its functions and powers amongst several Agencies because of the opinions of some that it has grown too big to be managed

efficiently and transparently because of its recent history. A focussed, committed and determined leadership of NIMASA which I have seen in its current Director-General, and the elimination of political interference in the performance of NIMASA’s statutory functions and powers, are amongst the factors needed to cause NIMASA to perform its statutory functions and powers efficiently and effectively.

How should the Nigerian Maritime Administration and Safety Agency (NIMASA) ensure that the regulation of the Maritime industry is advanced in the same way as commercial innovations within the industry?

I think some of the ways NIMASA can ensure that the regulation of the maritime industry is as advanced as commercial innovations within the industry should be the avoidance of bureaucratic bottlenecks in the way it does business or performs its functions, the deployment and usage of technology, trained and motivated staff, the modernisation of its Ships Registry to make it attractive to registration. I learnt recently that one of the reasons why the Nigeria LNG Limited is yet to register its vessels in the Nigerian Ship Registry despite being owned 49% by NNPC, is that NIMASA has not updated the Ship Registry despite the support given to it by Nigeria NLG Limited. Whatever is delaying the updating of its Ship Registry to make it attractive to shipowners should be immediately removed because through ship registration, the much-needed revenue would also come into Government coffers. It should encourage regular training and updating of knowledge by its staff. It should also avoid ineptitude, corruption, bureaucracy, inefficiency, customer-unfriendly and unpatriotic practices and use experienced maritime experts to help it in bridging and supplementing gaps where it lacks relevant personnel to quickly accomplish its statutory functions.

An important feature of the Cabotage Act is the Cabotage Vessel Financing Fund which is supposed to have been in operation since 2008. However, indigenous ship owners have not been able to gain access to these funds and only few applications for funding have been approved. What can be done to improve accessibility to finance for indigenous ship owners?

I understand that indigenous ship owners have not been able to gain access to the Fund and only few applications for funding have been approved but not disbursed. In my view, what can be done to improve accessibility to finance for indigenous shipowners are the immediate efficient and proper implementation and disbursement of the Cabotage Vessel Financing Fund and the Maritime Fund which are creatures of statutes that are long overdue for implementation and disbursement in order to develop indigenous shipping and shipping infrastructure. The Central Bank of Nigeria should also create a Maritime Intervention Fund like it did for the aviation industry recently, in order to make room for long-term loans with single digit interest rates that indigenous shipowners would have access to so as to avoid the high interest laden ship finance from other financial institutions that often send Nigerian shipowners out of business. It is not out of place for the Government to subsidise the long-term loans or provide guarantees for the loans that shipowners should access in line with what obtains in other shipping nations to enable their nationals invest in shipping and compete internationally.

Maritime and Admiralty matters fall under the jurisdiction of the Federal High Court by virtue of Section 251 of the 1999 Constitution.

It appears that the Federal High Court is overburdened due to the number of items under the Federal High Court’s exclusive jurisdiction. Do you think there is a good case for creating an exclusive maritime court?

There is no doubt that since the Federal High Court was conferred with unlimited jurisdiction under section 251 of the 1999 Constitution, the subject-matters over which it exercises civil and criminal jurisdictions have increased. In order to quicken the administration of justice and bring justice nearer to the people, the Federal High Court has been established in a majority if not all States of the Federation including the Federal Capital Territory but this has not fully solved the problem of congestion and delayed justice delivery. It is a universal principle that admiralty matters should be given accelerated hearing and determination because they usually involve heavy commercial interests and money but in practice, despite the front-loading procedure introduced by the Admiralty Jurisdiction Procedure Rules, 2011, accelerated determination of disputes is yet to be achieved by the Federal High Court in admiralty matters. This situation does not give Nigeria a good image internationally and does not encourage direct foreign investment.

I am of the view that all the stakeholders including the Judges, the Court (Registrar/clerk), lawyers, parties, witnesses and even the Government contribute to court congestion and each of them is responsible one way or the other for or contribute to the delayed determination of admiralty matters.

Therefore, creating an exclusive maritime court would be addressing one or two of the causes of delayed determination of admiralty matters. I will advise that in addition to creating an exclusive maritime court or designating exclusive Maritime Judges to hear and determine only admiralty matters, more experienced lawyers should be appointed Judges of the Federal High Court, fixed timelines (as in arbitration matters and election petitions) of not more than 6 months from the date of commencement of admiralty matters, should be set for the hearing and determination of admiralty matters in such a way that adjournments would not be allowed any of the parties or caused by the Court once trial has commenced. In addition to this, admiralty matters should be added to the list of matters which enjoy fast-track hearing and determination under the Practice Directions of the Federal High Court and the Court of Appeal and the Supreme Court should also follow suit.

Also in this area of law, there is an argument for the admission of experienced legal practitioners as Judges in order to increase practice knowledge and depth of Maritime industry experience on the Bench. Do you think this would be a useful course of action?

Yes, but I will add that the legal practitioners appointed as Judges should be educated and experienced in maritime law. This is because maritime law is technical and wide and requires special education and experience to be properly appreciated and applied. Lawyers that are trained and experienced in maritime law will on being appointed Judges of the Federal High Court appreciate maritime matters better without learning it on the Bench and their training and experience would facilitate their understanding of proper and quicker resolution of the issues in those admiralty cases. When they are elevated to the Court of Appeal and Supreme Court, they will also go

with their education and experience.

All Nigerian Ports were concessioned some 10 years ago allowing the private sector to participate in the running of the ports. However some maritime experts have observed that challenges, such as high port charges and undue delays in cargo clearance still persist.

In your view what is the way forward in the administration of our ports?

Under the port concession regime, the port authority that has pecuniary interest in the concessioned ports was unable or reluctant to fully regulate the port concessionaires or their tariffs so as not to adversely affect its economic or pecuniary interests and income. This is one of the flaws of the port concession regime that the current regime of Port Economic Regulator has changed to the satisfaction of many Nigerian shippers. There have also been complaints by shippers that multinational shipping conferences or lines and terminal operators have been imposing unsubstantiated surcharges and terminal handling charges for services not provided to make up for dwindling freight and other income which has caused Nigerian shippers to divert their imports to neighbouring ports due to high costs of ports services in Nigerian ports. However, by the Nigerian Shippers’ Council (Port Economic Regulator) Order 2015, Nigerian Shippers’ Council was appointed the interim economic regulator for Nigerian ports and mandated to inter alia regulate Nigerian Ports’ Concession agreements, regulate tariffs, rates, charges and other related economic services at Nigerian ports and monitor all matters relating to the cost, standard and quality of services rendered by the regulated services providers including Nigerian Ports Authority and seaport terminal operators. This is one of the proper ways forward in the administration of the ports in that it separates ports ownership from ports management and from ports economic regulation and takes away the conflict of interest of the Nigerian Ports Authority. I believe that the high and unsubstantiated and unapproved port charges and undue delays in cargo clearance are now being addressed by the Nigerian Shippers’ Council which has set up inter alia the Port Service Support Portal and Standard Operating Policy to check them but because sea terminal operators have taken the Nigerian Shippers’ Council to court, thus the matter is now sub judice, I am unable to comment further on same.

The Buhari administration introduced a new Forex policy which allows the exchange rate to be determined by market forces. In your view what impact is this policy having on the maritime sector?

In economics, when market forces determine the price of any product, it’s price is determined by its supply and its demand, in such a way that when it’s demand outstrips it’s supply, it’s price goes up and vice versa. Due to the fact that Nigeria has been an import-dependent country, with a single foreign currency revenue generation product for a long time (which the Buhari regime is trying to change by diversifying) and importers (manufacturers and businessmen) depend on foreign currency to purchase and import their raw materials, equipment and finished goods, the moment the supply of foreign currency was lower (due to the fall in revenue from crude oil resulting from an oil glut causing oil prices to fall globally and reduced oil exports due to militancy) the demand for foreign currency, the exchange rate went up.

Some of the consequences are that there has not been enough foreign currency available for importers to buy their imports and the funds of importers could now only buy half of what such funds used to buy due to the increased exchange rate. The Central Bank of Nigeria also excluded 41 items from access to official foreign exchange directing their importers to source their foreign exchange from the black market and other non-official sources. Some of the immediate effects are that fewer raw materials, equipment and finished goods are now being imported than before and the cargo being handled by the ports have drastically reduced. The reduced imports has multiplier effects such as reduced revenue to the ports and Nigeria Customs Service, reduced income to freight forwarders and clearing agents, reduced cargo insurance premiums to insurance companies and of course reduced income and taxes from companies involved in clearing and forwarding. Also, reduced imports have led to low demand for trucks the owners of which are now struggling to be in business and reduced cargo being handled by bonded terminal operators thereby triggering unemployment. Reduced imported items means less supply of imported

CONTINUED ON PAGE 11

23.08.2016

COVER/11

‘REVENUE FROM THE MARITIME SECTOR CAN SURPASS EARNINGS FROM CRUDE OIL’ goods and increased demand, resulting in an imported inflation of the prices of the goods to the ultimate consumers.

Insecurity on Nigerian waterways has become a common state of affairs, Pirates and Militant groups negotiate the waterways at will and continue to pose a continuing risk to commercial shippers. The incidence of violence, robbery and kidnapping are on the rise but there seems to be no clear strategy to solve, not just these immediate problems, but their inherent causes of disillusioned youths and feelings of resentment in the Niger Delta region. How do we turn the situation around?

For the purpose of suggesting solutions, I would like to separate pirates and armed robbers or unlawful actors at sea who through maritime violence, robbery, ship hijacking, crew kidnapping in port areas, territorial waters, high seas (shoot, threaten, injure crew members, steal ships and crew cash, provisions and damage ships and navigational equipment), from (Niger Delta) militants who due to disillusionment and resentment destroy crude oil and gas pipelines and installations with explosives, disrupt exploration and exportation of crude oil and gas, even though they both involve and affect maritime security and safety. When the causes of a problem are known and removed, the problem is solved. It has been argued that these problems are due to Youth restiveness resulting from underdevelopment, unemployment of the Youths who could not farm or fish because of the degradation of their environment by oil pollution, agitation for self-determination and control of resources in the Niger Delta etc. The current militancy is not new because it was very rampant during the regimes of President Yar’Adua and when President Jonathan was Acting President but it resurfaced after President Buhari took over power. I think that applying the same strategy that Presidents Yar’Adua and Jonathan used to solve the Niger Delta militancy in the past would help in solving it now. The Government should also negotiate with the militant groups just like it is negotiating with Boko Haram with a view to amicably removing the causes of the militancy so that there can be peace and progress in the region. The military option should not be used because war never solves the problem but peace enables us solve disputes amicably. To reduce if not eliminate Youth restiveness in the Niger Delta, Government should provide infrastructure, jobs, education through schools, skills acquisition centres, electricity, pipe-borne water, health care hospitals. The sponsors of the Petroleum Industry Bill, the Government and the National Assembly should quickly enact the long-awaited and long-overdue Petroleum Industry Bill that would facilitate the development of infrastructure, creation of jobs, oil pollution prevention and control, and promote a sense of belonging and say in the oil and gas sector by the Niger Deltans etc, whilst not neglecting the interests of other stakeholders in the oil and gas industry. The Federal Government along with the Federal Ministry of Niger Delta Affairs and the Amnesty Programme Coordinator and the Governors of the States in the Niger Delta should work together to accomplish these targets. They have done certain things but they have to do more.

Piracy being an international crime should be dealt with through the domestication of the relevant treaties. I had told you earlier about the Bill on Piracy and Unlawful Acts at Sea for the domestication of the SUA Conventions and UNCLOS on piracy which I drafted at the instance of NIMASA with inputs from IMO and other stakeholders. That Bill should be enacted into an Act by the National Assembly to provide a legal framework for the enforcement of the provisions of those treaties and to deter piracy and unlawful acts. Until the Bill is enacted, pirates and unlawful actors at sea will not be deterred but will continue to ravage and create havoc to ships and shipping and when arrested cannot be successfully prosecuted, convicted or fined under the current inadequate and archaic laws. I had written two papers on these areas titled ‘Recent Developments in Nigerian Maritime Law & Practice: Piracy and Unlawful Act at Sea’ delivered at the Maritime Seminar for Judges in 2012 and ‘Maritime Security Issues in Nigeria’ presented at the International Maritime Conference of the IBA in Connecticut, USA IN 2010. (See www.mikeigbokwe.com) where I had canvassed solutions that I think are still relevant today.

Time is of the essence in commercial agreements and more so in the Maritime industry. When litigation is involved however, the effect of delays are often greatly damaging to commercial concerns and the cost of time lost is often greater than the damages to be recovered. Arbitration awards are binding and enforceable by Nigerian Courts, and in comparison they appear to offer faster resolution of disputes. What do you see as the effect of Alternate Dispute Resolution mediums such as Arbitration on Maritime Litigation?

There is still a debate as to whether arbitration is an alternative dispute resolution (ADR) method or a hybrid between ADR and litigation. You are totally right that time is of the essence in com-

"IT IS A UNIVERSAL PRINCIPLE THAT ADMIRALTY MATTERS SHOULD BE GIVEN ACCELERATED HEARING AND DETERMINATION BECAUSE THEY USUALLY INVOLVE HEAVY COMMERCIAL INTERESTS AND MONEY BUT IN PRACTICE, DESPITE THE FRONT-LOADING PROCEDURE INTRODUCED

BY THE ADMIRALTY JURISDICTION PROCEDURE RULES, 2011, ACCELERATED DETERMINATION OF DISPUTES IS YET TO BE ACHIEVED BY THE FEDERAL HIGH COURT IN ADMIRALTY MATTERS"

"THE CABOTAGE ACT HAS A LOT OF PROVISIONS GIVING INCENTIVES TO NIGERIANS TO PARTICIPATE EFFECTIVELY IN THE MARITIME SECTOR" mercial agreements and the resolution of commercial disputes especially maritime disputes and also right about your impression about litigation. Due to the high costs, delayed determination, publicity and hostile nature of litigation in commercial dispute resolution, arbitration and ADR (by mediation, negotiation or conciliation) has been growing in importance and usage in the resolution of commercial disputes. Some of the advantages that arbitration has over litigation in the determination of commercial disputes are that it is less expensive and less time consuming, private and confidential in hearing, allows ‘party autonomy’ in choosing the substantive law, rules of procedure, it has finality and enforceability and recognition and allows for the use of experts as arbitrators which helps in resolving technical and complex issues in the dispute.

In my view, the main effect of arbitration on maritime litigation is that due to the advantages that arbitration has over litigation, parties to maritime contracts would want arbitration clauses to be inserted into their contracts for faster resolution of maritime disputes that may arise which would consequently reduce the number of maritime commercial disputes being resolved through litigation. This would no doubt reduce the maritime matters being filed in the Federal High Court for determination that would have given lawyers and Judges maritime disputes and maritime law experience. It is a warning to maritime Judges, maritime lawyers and their clients to support the quick hearing and determination of maritime litigation so that litigation would not totally lose out to arbitration in that area. However, in a paper titled ‘The Growing Importance of Arbitration in the Resolution of Commercial Disputes in Nigeria’ which I delivered at the 2016 Annual Conference of the Chartered Institute of Arbitrators in July, 2016, I had also warned that stakeholders in arbitration should be careful and continue to ensure that delayed determination and enforcement of Awards, high costs of arbitration, publicity due to challenges of Awards in courts, do not lead parties to ADR and reduce their use of, and the practice of, arbitration.

With the opportunity Arbitration provides to the Private Sector and especially Maritime stakeholders in the resolution of commercial disputes, do you think Nigeria can take advantage of Arbitration’s regional character to become a favourable forum for maritime arbitration in Africa?

Yes, I think so. I say so because there is a growing importance, awareness and use of arbitration in Nigeria through arbitration books, training and Seminars by Arbitration Institutions and Universities in Nigeria and due to the demerits of litigation in quickly resolving commercial disputes. Moreover, until a few days ago, Nigeria was the biggest (but now the 2nd biggest) economy in Africa and the most populous country in Africa. Nigerian courts encourage resort to arbitration where there is an arbitration clause in any contract in respect of which a dispute has arisen and now some State High Courts have rules allowing references of litigation to ADR for resolution. There are provisions in the Court of Appeal Rules allowing references of qualified appeals to mediation or ADR. I understand that the Supreme Court is in the process of amending its rules to allow mediation for the resolution of certain appeals. I believe that these uses of ADR has been helping and will continue to help in decongesting our trial and appellate courts.

The General Council of the Nigerian Bar in encouraging lawyers’ use of ADR, has made it a breach of the Rules of Professional Conduct in the Legal Profession for a lawyer to fail or neglect to inform his client of the option of ADR mechanisms before resorting to or continuing litigation on behalf of his client. There

CONTINUED FROM PAGE 10 is also a growing number of arbitration institutions and professional associations including the Regional Centre for International Commercial Arbitration, Lagos Court of Arbitration with state of the art facilities comparable to those abroad and the Chartered Institute of Arbitrators, Maritime Arbitrators Association of Nigeria that are training users and practitioners of arbitration and arbitrators and promoting arbitration and ADR. There is an increase in commercial activities and availability of experienced arbitrators in Nigeria. I believe these are all good reasons for Nigeria to become a favourable forum for maritime arbitration in Africa.

The Nigerian National Shipping Line (NNSL) wound-up in 1995, but is reported to possibly make a return under the current Ministry of Transport. Going by the history of the NNSL do you think we are ready to manage a shipping line?

Well, I was at the meeting which the Hon. Minister of Transportation held on 4th August, 2016 in Eko Hotel, Lagos with members of the Nigerian Shipowners Association to discuss the ‘National Carrier’. I got the impression from the meeting that the Government wanted to galvanise interested shipowners to invest in a shipping company that would qualify as ‘national carrier’ for deep sea shipping and own 60% of the shares whilst a foreign technical partner would own 40% of the shares. The Hon. Minister assured that the national carrier would start from lifting the Ministry’s cargo but the Government would not hold shares in it, it’s plan being just to facilitate and create an enabling environment for, the ‘national carrier’.

However, after the discussions, it appeared to me that there were three different positions. First, there were those who felt that since the Government was not interested in holding any shares (even as little as 10%), it should not drive or influence the process and the board appointment but should provide the conducive atmosphere for the private sector to drive it. Then the 2nd group was made up of those who wanted to approach the idea with caution because they were not sure that there would not be an overbearing Government interference or that the lessons of the past from NNSL had been learnt and would be avoided. This group also felt that the cargo promised by the Minister would not be for the long term but for the short-term as long as the re-construction of railways and airports lasted. They were also of the view that the technical partner is only experienced in containerised shipping for which there is not enough outward-bound cargo, whereas there is silence on how the ‘national carrier ‘should carry Nigerian crude oil and gas which should be the main target for lucrative shipping. It is also this group’s position that due to the expensive dry docking charges by shipyards in Nigeria if the ‘national carrier’s’ shipyard is not built for repairs of its fleet, the technical partners would under the guise of sending the fleet abroad for repairs siphon its income in hard currency, to the detriment of the owners. The 3rd group comprised those fully in support of the Hon. Minister’s plan and who believe that from the high sense of determination and doggedness of the Minister who had set up different Committees to review and advise him on the ‘national carrier’, his plans should be fully supported. They also believe that no previous Minister of Transport since 2007 had thought it fit to pursue vigorously the establishment of the ‘national carrier’ like the current Hon. Minister.

To me, a strong and well-managed ‘national carrier’ would be something our nation would be proud of as it will fly our national flag overseas, provide space for sea training and experience to our cadets, compete with foreign ships and reduce freights on exports and imports, create employment opportunities, carry export and import cargo belonging to the Federal State and Local Governments and their Agencies and have the right to participate in the carriage of not less than 50% bulk dry cargo or liquid cargo and of cargo generated through technical assistance or international aid and crude and petroleum products, generate revenue (also in foreign currency) and during any emergency or crisis when foreign ships would refuse to come to Nigerian ports, would be available to carry our imports and exports and support the Armed Forces. I am also of the view that since the Nigerian shipowners or their various associations involved in wrangling had not come up with a better alternative to the Hon. Minister’s plans on the ‘national carrier’ (previous Ministers did not come this far), his plans for the establishment of the ‘national carrier’, about 9 years after its legal framework was established by the NIMASA Act, 2007; should be supported. Let us just start and build now a ‘national carrier’ rather than wait indefinitely for when it will take off. If we do not start now, what are the chances that we would ever start and when and who would start a ‘national carrier’ and get the statutory cargo reserved for national carriers? A journey of a 100 miles is made by taking the first step in the right direction.

I also see through the establishment of a ‘national carrier’ as the Hon. Minister plans, an opportunity for indigenous shipowners who are currently divided, to be united under one umbrella in the ‘national carrier’ for a common goal and interest that would be used in developing shipping in Nigeria rather than dissipating efforts and resources in internal purposeless wrangling.

However, we must learn from and avoid the mistakes of the past and the bad experiences of NNSL’s failure but I do not think that failing once should stop one from trying again to pass a test until he gets it right. President Buhari would not have become our President in 2015 if after failing thrice in 2003, 2007, 2011 to win the presidential elections, he stopped trying to win. We should also put into consideration the concerns of those who are opposed to and those who want to ‘sit down look’ with respect to, the method of building, and, the ‘national carrier’ and address and allay those fears so as to take along as many shipowners as are interested. The ships in the fleet of the ‘national carrier’ should be diversified to take advantage of the types of cargo available in Nigeria namely, oil and LNG tankers, dry bulk and general cargo ships and incorruptible, diligent, focussed persons with cognitive experience in technical and commercial shipping should be hired to run such a national carrier with set targets.

12/

23.08.2016

Developing a Liquidity Solution for the Nigerian Power Sector (Part 1) Olayemi Anyanechi

R

ecently, a full page advert was placed in several Nigerian newspapers by six electricity generation companies (Gencos), warning of an impending shut down of their operations due to an outstanding N145.7 billion debt owed to them for power generated so far.

Collectively, these Gencos, including the three hydro stations, account for almost 65% of Nigeria’s entire available generation capacity today. The balance of 35% is from the IPPs – Shell Afam, Ibom Power and Agip Okpai, as well as a few of the completed NIPP power plants that still have gas to generate power. Both the IPPs and the NIPPs are owed huge sums as well for power generated till date. For instance, the NIPPs alone are owed over N90billion.

Besides being owed huge debts, the Gencos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today. Then there is the issue of the Niger Delta Avengers and other militant groups operating in the Niger Delta, which has severely constrained gas supply. Gencos are not the only parties being owed in the power sector; TCN as well as gas suppliers are also owed huge sums for transmission services and gas supplied to the power sector.

How Did We Get Here?

To understand the genesis of the revenue shortfall crisis, one must understand the structure of the power sector value chain from gas production to electricity distribution. The diagram below depicts the gas-to-power value chain and the various market participants.

As the diagram depicts, while electricity flows in one direction from the generating companies, the revenues to pay all market participants in the electricity value chain flow in the opposite direction and comes from the electricity consumers paying their electricity bills to the Discos. Thus, one Disco’s inability to fully pay for power sold to it for whatever reason will create a revenue shortfall across the entire power sector value chain.

Therefore, the crisis in the power sector is as a result of persistent revenue shortfalls arising from the inability of Discos to pay fully for electricity generated by Gencos since the conclusion of the privatisation of the PHCN successor companies in 2013. From the last data released by NBET, average payment by Discos to NBET for power is less than 29% of the total market invoice.

The inability of Discos to pay their market invoices (hence that of NBET to pay Gencos) in full can be attributed to a combination of the following factors: • High distribution and non-distribution losses across the distribution and transmission value chain; • Inadequate generation capacity as a result of poor gas supply (arising mainly from vandalism of oil & gas infrastructure), limited transmission infrastructure and lack of new generation capacity.

Total available generation capacity since February 2016, fluctuates between 1,900 MW to 3,000 MW, which is less than half of the 7,000 MW projected in the MYTO 2016 in setting the retail electricity tariffs.

• Lack of cost reflective electricity tariffs and arising customer resistance to the new electricity tariffs introduced in February 2016.

• Low collection efficiency and a corresponding lack of significant investment by Discos in metering customers to improve their collection efficiencies.

• Huge debt owed to Discos by MDAs, State and Local Governments.

Data from distribution loss studies recently conducted by Discos and provided to NERC show that average aggregate distribution and non-distribution losses across all Discos are in excess of 50%. To put it in layman’s perspective, more than 50% of power generated is theoretically lost, stolen or simply not paid for. No industry in whatever sector can sustain these high revenue losses and still be expected to stay afloat as a going concern without any form of intervention.

The Role of Government in the Power Sector Revenue shortfalls are typical in a transitional electricity market. In a nascent, transitional electricity market like the Nigerian electricity market, government’s role is overarching and critical to the stability of the market and also in stimulating investments in the sector. Government’s roles include putting in place cost reflective tariffs, ensuring the activation and effectiveness of contracts in the electricity market and adequate regulations that enforce the sanctity of such contracts.

In our view, Government’s predominant role is to create market confidence and ensure the viability and credit worthiness of the power sector particularly during the transitional phase of the market.

In the design of the current power sector model in 2005, revenue inadequacy (revenue shortfalls) was anticipated by the designers due to the high ATC&C losses in the entire value chain. The shortfall between actual revenues collected and expected revenues was to be funded by the Federal Government via monthly subsidies.

In a notice of the proposed rulemaking on transitional trading arrangement and financial settlement system published by NERC in the Financial Standard newspaper of Thursday, July 31st, 2008, NERC stated as follows: “…Given the revenue inadequacy which will now be funded by the subsidy in the first three years of the MYTO, the shortfall between the obligated payment and actual revenues collected, will be met by the Government on a monthly basis beginning from July 1st, 2008….”

In addition to monthly subsidies, it was anticipated that the Government will provide and also arrange guarantees either locally or from the World Bank to meet systemic or market risks such as regulatory risks, gas supply risks, revenue risks, etc.

Today, the Federal Government has been unable to provide subsidies to fund the shortfall thus far due to budgetary constraints. Market participants across the entire value chain are faced with both systemic and market risks without the anticipated Government subsidies, Guarantees or World Bank PRG as envisaged under the transitional trading arrangement by NERC. We must quickly add, however, that the use of subsidies is not a sustainable means to fund the revenue shortfall and should not be contemplated.

Under the transitional electricity market, Government plays a big role in the electricity market through the Bulk Electricity Trader. The Bulk Trader is an entity set up to ensure bankability of the electricity market by ensuring that revenue shortfall by a Disco do not affect Gencos and other market operators in the electricity value chain.

What is the Bulk Trader?

The Nigerian Bulk Electricity Trading Plc (NBET), popularly called the Bulk Trader, is a creation of the Electric Power Sector Reform Act (EPSRA) and was incorporated on July 29, 2010 to carry out, under license from NERC, the bulk purchase and resale of electricity contemplated by the EPSRA (http://nbet.com.ng/about-nbet/who-we-are/).

NBET’s key role is to generate market confidence through well-negotiated and well aligned contracts with fair risk allocation that protects market participants from credit risks and systemic risks. In the absence of bi-lateral contracts between Gencos and Discos, NBET is designed to act as a credible and credit worthy off-taker of power to be procured from Gencos under effective Power Purchase Agreements (PPA) and sell the power to Discos, with the objective of protecting Gencos from Disco payment risks and de-risking the power sector.

In his statement on the inauguration of NBET Board in 2011, the former President Goodluck Ebele Jonathan expressed his confidence that NBET will faithfully execute its mandate of serving as a bulwark against the potential payment default by distribution companies until they become financially strong to directly enter into power purchase agreement on bilateral basis.

Without doubt, NBET’s primary aim is to act as a backstop the kind of payment default we now see endangering the entire electricity value chain.

NBET has a capitalisation by the Federal Government of Nigeria in excess of $800 Million.

In the event of revenue shortfalls from Discos, the Bulk Trader is expected to use its capitalization to bridge the revenue shortfall and ensure Gencos and other market participants are paid in full for power generated.

For NBET to be successful in its mandate to bridge revenue shortfalls in the power sector, it must have enough capital to meet its payment obligations to Gencos in a sustainable manner.

This, in reality means that its payment obligations to Gencos under effective PPAs needs to be fully guaranteed by the Federal Government.

Will There Be Any Improvement in the Revenue Shortfalls Soon?

Currently, monthly revenue shortfalls in the electricity value chain are in excess of N20billion and will rise further once electricity tariffs are adjusted upwards to reflect the effects of the floating of the Naira (particularly on the price of natural gas) and rising inflation. Naira devaluation and inflation are direct pass through costs to electricity customers.

With the current state of the Nigerian economy, we can expect that monthly revenue shortfall to Gencos and other market participants will cross the N30billion mark by the end of August, 2016.

Unfortunately, the revenue shortfall situation may likely not improve anytime soon except the following actions are taken: • The issues surrounding the implementation of the recent tariff increase are fully addressed by the Regulator and the Courts; • Discos aggressively address their losses and become more efficient in their collections through metering; • MDAs, State and Local Governments are able to pay their indebtedness to Discos; • The federal government successfully deals with, and puts an end to the issue of militancy and pipeline vandalism in the Niger Delta.

• The CBN continues its disbursement from the its Nigerian Electricity Market Stabilisation Facility (NEMSF), being provided to service providers in the power value chain to address shortfalls in power sector revenues, settle legacy gas debts and shortfalls in revenue and to hasten the advent of a contract-based electricity market.

Notwithstanding the above, without any equivocation, there will still be revenue shortfalls (hence payment risks) across the entire power sector value chain for the next 3 – 5 years due to the huge transmission and distribution losses in the power sector, possible occurrence of Availability Events under the PPA (weak transmission infrastructure and gas constraints), foreign exchange uncertainties arising from the floating of the Naira, potential tariff rate shocks and a weak economy.

Unfortunately, NBET’s current capitalisation, which is in excess of $800m is not sufficient to address current payment defaults by Discos beyond 8-12 months at current shortfall levels. NBET’s

Minister for Power, Works and Housing, Babatunde Fashola SAN

ability, to continue to serve its primary goal in meeting these revenue shortfalls as and when they occur is most imperative for the survival of our transitional power sector.

Addressing the Revenue Shortfalls in the Power Sector A sustainable way to address the revenue shortfalls and credit risk in the power sector is to put in place a liquidity and payment support structure that would: (i) Support NBET’s payment obligations to Gencos under respective PPAs, which in turn, would enable Gencos meet their payment obligations to their Gas Suppliers under respective GSAs; (ii) Settle outstanding debts to Gencos and their Gas Suppliers; (iii) Cover anticipated revenue shortfalls which threaten the stability and sustainability of the power sector; (iv) Guarantee full payment to other market participants (Gencos, TCN, Market Operator and Gas Suppliers); (v) Provide re-investible funds for Discos to fund their capital programs to reduce distribution losses and improve collection; (vi) Provide market confidence to investors in the power sector The proposed liquidity and payment support mechanism is for NBET, as the Bulk Trader of electricity, to fully bear existing and future revenue shortfalls and payment risks to the market during the transitional electricity market until such a time that Discos significantly improve their revenue collection and become more efficient in their operations.

The NBET Bond Program – A Local PRG & Liquidity Solution NBET’s liquidity and payment support mechanism can be structured as a medium-term notes issuance program by NBET (NBET MTN Program), with an embedded partial risk guarantee from the CBN. Medium-term notes (MTNs) are debt instruments usually issued under a program that allows the issuer to offer its MTNs to investors from time to time without producing extensive legal documentation at the time of each issuance of notes, thus offering the issuer and investors more flexibility to the issuer and investor both in terms of structure and documentation.

Under the NBET MTN Program, NBET will issue tranches of debt instruments with tenors not less than 10 years, to fund existing and future revenue shortfalls.

This is not a new solution, as we understand that NBET has in fact commenced the structuring of a bond program to enhance its capitalisation.

Unfortunately, the House of Representatives, in its wisdom, have put the implementation of the bond program on hold.

The advantage of the NBET bond program is that it unlocks sustainable long term funding from the Capital Markets (particularly Pension Funds and Institutional Investors) rather than the use of subsidies and intervention funds such as the N213billion CBN intervention, which are not sustainable in the long term.

In the second part of this article, we shall put out our ideas on the structuring of the NBET

CONTINUED ON PAGE 13

23.08.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

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

Dear Counsel, Your advice would be appreciated on this issue.

My 13 year-old marriage is being threatened.

Before I got married, I took my time to ensure that I fulfilled every requirement, including all the traditional arrangements. Unfortunately my wife could not conceive in the first 11 years of our marriage and I was under pressure from my family.

I had a relationship with my younger sister’s friend who later had a baby for me. My wife eventually had our first baby in 2010 and we are expecting our second baby in four months.

The lady who had a child for me and her parents have been putting my family under pressure to pay her dowry with a condition that I will have access to my son. I told my father I would never consider it. Initially he appeared satisfied with my decision, but he eventually succumbed to their pressure and is now asking me to give him permission to pay the dowry on my behalf. According to my father he does not want to have a ‘questionable’ grandchild, especially as he is still alive.

My siblings are aware of this development and they are secretly advising me against it.

R. E., Abuja.

Dear Mr. R.E., I would advise that you tread this path with utmost caution. This is because of the obvious legal implications.

I know this is not an uncommon scenario in Nigeria and most cultures accept, condone and even in some circumstances encourage it.

Although you did not expressly mention it in your letter, I would like to believe that you married your wife in church or at the Marriage Registry. If that is the case, then I will have you know that it is illegal to marry another wife, even if you do it under Native Law and Custom like your father is encouraging you to do.

The Marital Causes Act and the Marriage Act makes it illegal to do so. Under the Marriage Act Cap M16, Section 47 provides ‘Whoever, having contracted marriage under this Act, or any modification or re-enactment thereof, or under any enactment repealed by this Act, during the continuance of such marriage contracts a marriage in accordance with customary law, shall be liable to imprisonment for five years.’

ACCESS TO QUALITY JUSTICE IN NIGERIA

CONTINUED FROM PAGE 6

to deal with. The first is the discretion to award costs and the basis for the assessment of costs – standard taxation or taxation on an indemnity basis; the second is the power to award wasted costs against the legal practitioner.

The Judge has a discretion whether costs should be payable by one party to another and, if so, the amount of such costs, and when they should be paid. Although costs are always in the discretion of the Judge, the normal rule is that the successful party is prima facie entitled to his costs, but the court may make a different order or even no order as to costs.

In determining the incidence and quantum of costs, the Judge will normally take into account the conduct of all the parties, whether a party has succeeded on part of his case, even if he has not been wholly successful, and any binding offer for settlement made by one party.

In evaluating the conduct of the parties, the Judge will be primarily concerned with their conduct during the proceedings, including whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue, the manner in which a party has pursued or defended his case or a particular allegation or issue, and whether the plaintiff who has succeeded in his claim, in whole or in part, exaggerated his claim.

The significance of these factors is that the Judge should make a genuine effort to assess the costs of the successful party and not take the easy way out by awarding nominal costs and taking refuge in his discretion regarding costs. The assessment should normally be on a standard basis under which the successful party would get about two-thirds of his reasonably incurred

costs. In exceptional cases, assessment on an indemnity basis may be appropriate.

In Nigeria, however, costs awarded are usually very small.

They cannot possibly cover the real costs of a single step in the proceedings, let alone the costs of issuing proceedings and taking the proceedings to trial. The practice is the same both in the High Courts and in the appellate courts. It is not clear why it is so.

12 years ago, in a paper presented by Dr Ogowewo on 20 February 2004 on the occasion of Justice Ayoola’s retirement he collected and presented data which showed that in the 1970s and 1980s our courts awarded over N300,000 in some case, which was then equivalent to US$300,000! No court can do that today. Why? As regards wasted costs orders, I believe that the time has come for our judges to order legal practitioners to pay wasted costs, if they have conducted themselves or the proceedings in a manner which falls below proper professional standards. Hostile wasted costs orders are exceptional and the power to make such costs orders should be exercised very sparingly. But even with such caveats, there must be circumstances where such orders would plainly be appropriate. I believe that such orders would help to raise the overall standard of legal practice, which would be good for the legal practitioners and our civil justice system.

Sanction erring lawyers especially senior lawyers including imposing wasted costs. As regards wasted costs orders, I believe that the time has come for our judges to order legal practitioners to pay wasted costs, if they have conducted themselves or the proceedings in a manner that falls below proper professional standards. Hostile wasted costs orders are exceptional and the

DEVELOPING A LIQUIDITY SOLUTION FOR THE NIGERIAN POWER SECTOR CONTINUED FROM PAGE 12 MTN and embedded PRG. Conclusion Revenue shortfalls, credit risks and gas supply constraints in the power sector under a transitional electricity market is to be, and was anticipated. However, resolving the revenue shortfalls has proved a bit of a challenge, and a long-term and sustainable solution will take time and significant investments by the private operators and the Government. However, Government, through NBET, must stand ready to firmly assure investors across the power value chain and the banks who are behind these investors that such investments in the power sector will be fully recoverable.

As it stands, without the deployment of NBET’s US$800 million capitalisation to meet the revenue shortfalls, as well as the full disbursement of the N213 billion CBN facility to the power sector, Gencos as well as their gas suppliers, may have no other option but to shut down operations and plunge Nigeria into darkness.

Even at that, such an intervention will be temporary relief only.

Without an NBET MTN Program as proposed, or any form of long-term funding intervention by the Federal Government, the power sector may well be heading for a total collapse.

Olayemi Anyanechi is the Managing Partner of Sefton Fross, a law firm based in Lagos. She specialises in Banking and Finance as well as Energy and Natural resources law.

Had a Long Day In Court?

A New Yorker was forced to take a day off from work to appear for a minor traffic summons. He grew increasingly restless as he waited hour after endless hour for his case to be heard. When his name was called late in the afternoon, he stood before the judge, only to hear that court would be adjourned for the rest of the afternoon and he would have to return the next day.

“WHAT FOR ” he snapped at the judge.

The Judge, equally irked by his tedious day and the sharp query, roared out loud, “Twenty dollars, contempt of court! That’s why!”

Then, noticing the man checking his wallet, the judge relented: “That’s all right. You don’t have to pay now.”

The guy replied, “I know – I’m just seeing if I have enough for 2 more words!”

Newly Discovered Evidence Lawyer: “Judge, I wish to appeal my client’s case on the basis of newly discovered evidence.”

Judge: “And what is the nature of the new evidence?”

Lawyer: “Judge, I discovered that my client still has $500 left.”

power to make such costs orders should be exercised very sparingly.

But even with such caveats, there must be circumstances where such orders would plainly be appropriate. I believe that such orders would help to raise the overall standard of legal practice, which would be good for the legal practitioners and our criminal justice system.

10. Funding of courts Better funding and resources of the judiciary Notwithstanding the billions of dollars wasted in Nigeria on public administration, the judiciary is the least funded of the three arms of government.

In some cases remand prisoners remain in custody for periods often exceeding the maximum sentence which can be imposed in the event that they are convicted. Criminal trials are repeatedly adjourned, often because the accused has not been brought to court – the broken down “Black Maria” problem – or because witnesses for the State have not turned up. There is apparently no system for reimbursing witnesses their travel costs. Given these and other resource issues, it is unfair to criticise the courts for failure to dispose of criminal matters expeditiously.

Pay Judges better than they are paid now, instead of wasting our scarce resources on inflated remuneration for Federal, State and Local Government lawmakers.

Make Judges declare their assets periodically and prosecute corrupt judges, not just retiring them with full benefits Provide judicial assistants Automatic recording of court proceedings In assessing our judiciary, we must always bear in mind that judges, like all human beings, are subject to passions, prejudices, ambitions and fears. As Judge Jerome Frank of the United States Court of Appeals said in Re J P Linahan, 138 F 2d 650 at 652-653 (1943), it is a “myth that merely by putting on a robe and taking the oath of office as a judge, a man ceases to be human and strips himself of all predilections, becomes a passionless thinking machine.” Our judges perform extremely difficult tasks daily and have many contributions to make to our nascent democracy. And they should feel pride in what they do, who they do it for, and how they do it, despite the reality of their fears and the tensions and challenges which they face daily. They will be best assisted in their role if we, the public, were to appreciate their limitations.

To mystify the judiciary is unfairly to create expectations which Judges cannot possibly satisfy.

Professor Oditah QC, SAN practices in Lagos, Abuja and London.

14/

23.08.2016

IN BLACK AND WHITE ADERINSOLA FAGBURE

afagbure@yahoo.com

Stewardship in Tough Times

F

lipping through the local newspapers is not exactly the most pleasurable activity to engage in, in recent times. The Nigerian economic team appears somewhat overwhelmed by the state of the Nigerian economy, with inflation and stagnation being experienced simultaneously. It is no news that these are not the best of times. Even the common man on the street knows that things are hard. In spite of it all, I tend to share the optimism expressed by the Finance Minister, Mrs. Kemi Adeosun that we would eventually get out of the recession. The purpose of this piece however is not to discuss the current economic situation, but to suggest ways to boost the nation’s industrial competitiveness and promote the growth of multinational and indigenous companies through engagement.

Corporate governance and transparency must therefore be enhanced possibly through shareholder engagement.

Nigeria can learn from the Japanese example which saw a Stewardship Code being born out of a need to promote corporate accountability with a view to revamping the country’s economy.

Extensive stakeholder engagement engendered the establishment of the stewardship code which laid down principles for a wide range of institutional investors to appropriately discharge their responsibilities. The United Kingdom is another jurisdiction where institutional shareholders play an important role in Corporate Governance through the 2010 Stewardship Code.

It is important to mention that the UK boasts the most detailed initiative to date to develop a code which puts increased responsibilities on the investor and investee communities. Other jurisdictions such as France and the Netherlands have also adopted this model. By and large, the essence of a Stewardship Code is to advance shareholder surveillance of companies which is viewed by many as the missing control that led to the global financial crisis.

There are a number of arguments in favour of institutional investment and consequently a Stewardship Code. The tougher the economy

gets, the harder it is for people to save and subsequently invest. The collective investment concept provides a less capital intensive approach to investing, as small players can own a slice of cake instead of nothing at all. Institutional investors can broadly be classified into asset managers and asset owners. The former group of shareholders are entrusted to manage funds and invest in companies on behalf of others. The asset owners on the other hand include pension fund businesses and insurance companies which invest their excess funds in a bid to improve the bottom line. Nigeria’s pension funds are fast growing with the National Pension Commission (PENCOM) putting the asset pool made up of contributors’ funds, and managed by Pension Fund Administrators (PFAs), at about N5.3 trillion as at February 22nd 2016. These funds must be invested and it is not unfounded to believe that a huge percentage will be invested in shares, stocks and bonds.

I am a proponent of the school of thought that views law as a tool for social engineering.

This means that legislations can be drafted to bring order to society. Nigeria has over the years borrowed many of its laws from the UK because of the similarities in legal systems. I disapprove of a wholesale copy and paste approach to legal drafting, and therefore feel

that our country can craft a Stewardship Code which takes the peculiarities of the system into account. Public companies in our economy must continue to be accountable to their stakeholders, particularly shareholders with large holdings.

It is important at this point to commend the Financial Reporting Council for the initiative exhibited in putting together a holistic corporate governance code which seeks to promote corporate accountability, though still in the draft form and considered to contain some controversial clauses. A legislation on stewardship will no doubt complement various sectional efforts and as such should be seen as the icing on the cake. The call for better engagement between investors and investee companies should however not be seen as an all-encompassing solution to the challenges facing Nigerian public companies.

Stewardship aims to promote the long term success of companies in such a way that the providers of capital get value for their money. In publicly listed companies the responsibility for stewardship is shared between the board and the investors. Board excesses cannot be curbed where investor apathy exists.

It has been said that without the necessary push, shareholders may look the other way,

particularly at the individual level. Consequently, a Code assists institutional investors better to exercise their stewardship responsibilities, which in turn gives force to the “comply or explain” system.

For investors, stewardship should be more than just voting. Activities may include monitoring and engaging with companies on matters such as strategy, performance, risk, capital structure, and corporate governance. Culture, remuneration and board effectiveness should also not be overlooked.

It will be interesting to find out what sacrifices are being made by the board and management of public companies in the face of dwindling returns to shareholders. Importantly, it must be mentioned that compliance with the Code does not constitute an invitation to manage the affairs of a company or preclude a decision to sell a holding, where this is considered to be in the best interest of clients or beneficiaries.

The role of existing investor groups such as the National Association of Shareholders may be better captured through legislation. The worrisome state of the Nigerian economy more than justifies the philosophy of the survival of the fittest. From production to sales, all effort must be made to optimise resources. Governance must be seen as being at the heart of the success of entrepreneurship, if the Nigerian capital market is to remain attractive.

Intellectual Property Rights within the Context of Online Media Olaoluwa Oni

T

he reality of intellectual property rights is one of the few joys that make the often lonely life of a creative worth living. Because intellectual property rights exist and are recognised, authors like Wole Soyinka, Chinua Achebe and Chimamanda Adichie can make a living off their writing and in return, be encouraged to churn out more works for the pleasure of their readers. Also, the dominance of the internet and growing popularity of personal blogs and social media means that more and more people have the opportunity to dabble into creative ventures and acquire intellectual property rights. It also means that opportunities abound for infringement either by design, negligence or ignorance- on these rights.

Intellectual property rights typically vest on all products or outcomes of creative venture and are traditionally categorised into “Copyright”, “Trademarks” and “Patent and Design” protection. The key consideration is that the person applying for the protection or enforcement of

an intellectual property right must be able to show that the product or service was developed through his/her own creative venture and does not closely resemble something that is already in existence.

There is a general understanding of, acceptance of and respect for intellectual property rights that vest on Trademarks (which is why we would be suspicious of any brand of soft drinks that adopts the Coca-Cola Trademarks) and patents and designs (such as technological inventions).

With Copyright protection however, especially of literary and artistic works, it appears that a culture of impunity for rights has become the norm.

The Nigerian Copyright Act identifies six categories of works that will qualify for copyright protection: Literary Works, Musical Works, Artistic Works, Cinematograph Films, Sound Recordings and Broadcasts. Of these categories, perhaps Literary Works (articles, stories, poems, etc) and artistic works (pictures, photographs, paintings etc) are the most violated of intellectual property rights. These violations are aided along by globalisation brought about by the internet, blogosphere and gossip/entertainment blog genre.

With traditional print media, it is usually easier to identify instances of copyright violations and quantify in financial value, the amount of damages caused by the infringement. The question usually turns to the number of sales made, the amount for which the item was sold, the number of persons the item was sold to; properly calculable data. However, violations that occur in traditional print media can usually only be redressed through damages; which makes for a tricky situation where the infringement occurred inadvertently.

Conversely, with online publication, the extent and amount of damages brought about by an infringement is usually incalculable and is almost always instantaneously expansive. It is however usually more remediable where the violation has occurred inadvertently. But first, let us understand the context of a copyright violation.

Plagiarism Plagiarism is the generic tag used to identify instances of violations of copyright.

It covers instances from the use of an idea without acknowledgement and credit to the

acknowledged use of another person’s work, so extensively that it forms the major part of one’s work (colloquially known as “copy and paste”).

In this regard, where a person takes a line from the work of another author and uses it in his/ her own without acknowledgement, such an act will qualify as violation. Also, where an author formulates an entire chapter of his book from text borrowed from another author, that act would also constitute an infringement on copyright, with or without acknowledgement. At all relevant times, the test to determine whether a work is infringing is the answer to the question: “Has the author exerted enough effort into the work as to make the product a unique expression of his/her own thoughts findings and conclusions?” If the answer to the question is no, then the author of the infringing work is deemed to have plagiarised the work of the original author whose text has been “borrowed”.

As earlier indicated, the effect of plagiarism is usually easier to quantify financially within the context of traditional print media. However, the nuances of online media make the financial

CONTINUED ON PAGE 15

23.08.2016

/15

PEARLS OF LAW SANDRA OKE

sandra.oke@norfolk-partners.com

Counterfeiting in the Fashion Industry

A

lexander Wang was awarded $90 Million dollars in damages for a cybersquatting and counterfeit case last week. This was the court’s ruling against 45 defendants operating 459 domain names and as fate might have it, the defendants did not appear in court. A default judgment was awarded in his favour including $90 Million in damages, he was also granted ownership of 459 domain names that were offering counterfeit goods for sale or using the Alexander Wang brand name for their websites such as cheapalexanderwangbags.com, these websites are so similar to the actual Alexander Wang website and are likely to cause confusion in the minds of customers looking for authentic Alexander Wang goods. Although Alexander Wang can heave a sigh of relief for obtaining this ruling, it would be difficult to enforce because it is a default judgment, secondly, these websites are usually registered under false names and it is almost impossible to trace the owners of the domain names. A spokesperson for the brand has acknowledged these facts in his statement to the press, he explained that “The court system regularly awards very large amounts for the symbolic significance, as a means of deterring other individuals and parties. In other words, Alexander Wang is unlikely to receive $90 million," The scourge of counterfeiting has also been experienced by other top luxury brands such as Louboutin, Louis Vuitton, Coach and Chanel. In 2012, the US Customs and Border protection destroyed 20,457 pairs of Louboutin at the Los Angeles/ Long Beach Sea Port. The fake shoes were imported in five different shipments from China but the shoes are actually manufactured in Italy. Similarly, Louboutin sued a China Town Landlord for permitting the sale of counterfeit goods at seven different locations.

Counterfeit goods have an adverse impact on the luxury goods market. A study by the European Union revealed that 10% of all fashion related products are counterfeit which results in an approximate total of $28.5 million dollars in losses. This percentage is on the increase due to the presence of online channels which make tracing fraudsters very challenging, this leads one to consider the topical issue of counterfeiting in the luxury fashion Industry.

The existence of counterfeit goods is a well-known fact, very often one who comes across these goods find that they are being sold online or instore at extremely ridiculous prices. One might even be curious to actually find out why individuals still purchase these goods in spite of their questionable origin and the answer that readily comes to mind is the fact people view these prices as deals and they are more concerned about getting a bargain and not overly concerned about the authenticity or the origin of the goods they purchase.

Experts in the fashion industry exploring the high

incidence of counterfeiting have discovered that the availability of a variety of products released by different brands, to stay relevant and the innate desire of customers to purchase new trends at a budget price, is the perfect breeding ground for counterfeiters.

Luxury brands have responded to counterfeiting by fighting the counterfeit supply chain from the manufacturers, wholesalers, retail operators and website owners, as well as distributors in the markets. Some designers have introduced litigation campaigns to reduce this such as Alexander Wang in the above scenario. Coach in 2009, started an anti-counterfeit campaign called “Operation Turnlock” which is a civil litigation strategy. Coach has sued about 700 counterfeiters, these lawsuits are primarily against vendors as direct infringers and flea market operators as “hosting sites”. As part of this operation it initiated a suit against Swap Shop Inc. for the sum of 5.5 million.

The US Immigration and Customs Enforcement raided the shop and seized the counterfeit products. Coach also sent cease and desist letters to Swap Shop stating that the flea market was deliberately allowing vendors to sell counterfeit Coach products. Afterwards, Coach brought an action against Swap Shop in March 2013 before the US District Court for the Southern District of Florida claiming that the flea market vendors had engaged in copyright and trademark infringement and dilution. It further stated that Swap Shop was liable for contributory and vicarious copyright and trademark infringement and dilution. As part of its reliefs, Coach demanded for injunctive relief and damages between $1,000 and $2 million for each violation.

Other anti-counterfeiting measures introduced by companies

INTELLECTUAL PROPERTY RIGHTS WITHIN THE CONTEXT OF ONLINE MEDIA considerations a little trickier to identify. To understand the difficulty in assessing damages, it is important to understand how money is made from online publication.

Making Money from Online Media.

Traffic. Traffic. Traffic. There may be the occasional commission, advertisement/endorsement or sale arrangement. But, the major source of income of people who publish their writing online and run a personal or professional blog is the traffic generated by visitors to their sites.

There is a direct relationship between the number of visitors to a site and the amount of income generated by the site. Even the capacity of a website or personal blog to generate income is dependent on the amount of visitors to the site. As such, it is an infringement to use the content of a website in a way that prevents visitors from coming on to a site.

The drive to generate as much traffic as possible and therefore make as much money as possible is usually motivation for authors who publish their work online. So say for example, I run a personal blog and I understand that the number of articles I publish daily would affect my monthly income. It is only natural that I would publish as many articles as I can to attract as many visitors as possible to my site. Of course, the nuances are more complicated than the number of articles published.

I also need to ensure the nature, format and subject matter of the posts published are such that people would be interested in reading them. This takes a lot of work. There are also considerations about publicity and visibility; putting in work to ensure that people are aware of your posts and visit your site.

include registering their trade mark with worldwide customs and adding anti-counterfeiting labels to their products.

The measures adopted by these global luxury brands are laudable and in the very near future Nigerian fashion designers have to adopt measures to protect their goods from counterfeiting locally and internationally. Nigeria seems to be a good market for the sale of fake products.

According to a survey on “pharmaceuticals, luxury goods, software and computer hardware, audio and visual sector, motor vehicle spare parts, food and beverages”, the volume of counterfeit goods in Nigeria is about 60 – 80 per cent.

Apart from harming the local economy counterfeiting stifles the growth of locally-made goods.

In Nigeria, counterfeiting is tackled through laws these are the TRIPS Agreement; and Paris Convention for the Protection of Industrial Property. The TRIPS agreement aims to address the gaps in international Intellectual property enforcement by introducing border control measures. It allows manufacturers or intellectual property right holders who reasonably suspect the importation or exportation of pirated/counterfeited versions of their works, to make applications to the appropriate authorities (administrative or judicial) for the seizure of such counterfeits at the borders by customs officials.

Regulatory agencies also combat counterfeiting, these include the National Agency for Food and Drug Administration and Control (NAFDAC), Nigerian Customs Service (NCS), Standards Organization of Nigeria and the Nigerian Copyright Commission.

The Nigerian Customs Service has an “Enforcement, Investigation, Inspection, and Intelligence” department which amongst others coordinates all anti-smuggling measures at the international borders. The Customs Service also carries out specific campaigns to address counterfeiting. In 2010, the Presidential Task Force for 100% Inspection was established to prevent the importation of smuggled goods and ensure the complete inspection of all consignments selected for physical examination. This task force intensified inspections on consignments with more tendencies to default, than on every shipment. The NCS further established an independent unit- the Customs Intelligence Unit (CIU) – with trained officials which is responsible for obtaining and gathering information necessary to combat counterfeiting and piracy.

Conclusion Notwithstanding the measures enumerated above, it is sad to note that the sale of counterfeit products including luxury goods is still flourishing in Nigeria. To effectively combat counterfeiting, companies should develop an exhaustive strategy to protect their intellectual property rights which should include developing a framework to monitor infringement, protecting their rights by registration and engaging Intellectual property lawyers. The Nigerian Customs Service also has to ensure it effectively monitors imports, boosts capacity and promotes the integrity of its officers.

CONTINUED FROM PAGE 14

For less established blogs and websites, this aspect of publicity and visibility is vital, tricky and tedious. Now imagine after exerting the effort to write, publish and publicise a post someone else (organisation, person or website) strategises and makes a business off of stealing your material and traffic.

That act is plagiarism within the context of online media.

Plagiarism within the Context of Online Media Any action that is designed to take advantage of the traffic (and eventually income) generated by an online publication and divert such traffic to another site other than the source of the post is plagiarism. It is even worse when the plagiarist acts to prevent the source from generating any income from the material published. As illustration, let us use a very typical example.

Website A, which is a smaller and relatively unknown platform, publishes an article with the potential for viral readership. Website B which is a popular platform happens upon the post and lifts the entire content of the post and publishes it on its own website with or without acknowledgement. The natural progression of events is that the post would go viral but all traffic would be generated to Website B and even if Website A is acknowledged as the author of the post, it would generate no income from its publication. Website B on the other hand would probably generate so much income that it would be able to afford accommodation in one of the most expensive real estate locations in the world; by doing no work.

Plagiarism as Theft Plagiarism involves reproducing the content of another person’s

work without the consent of the author of the work and in such a way as to deprive the author of legitimate earnings from the work.

An understandably justifiable way to approach plagiarism is to treat it as theft- theft of earnings. The online plagiarist enjoys the financial benefit of intellectual labor for doing no work at all. Or at the most, doing work that is remarkably similar to the “work” done by robbers when they stake out their victims to determine against whom to strike!

How Not to Be a Plagiarist Plagiarism, especially of online media content is so easy to avoid that the theft really should not be left to go unpunished.

First, no website should publish the full content of a post of another website without due authorisation. At best, only a few sentences of the post should be published.

Secondly, any website referring to or borrowing content from another website must create an automatic backlink to the website of source. This ensures that the source website can generate traffic and income from its publication.

For the purpose of information, plagiarism (of online and traditional) content is actionable under the Nigerian legal system and a victim of intellectual heist can seek and obtain remedy in the courts through a creative reading of the Copyright Act and the Criminal Code.

Olaoluwa Oni is a student of the NYU School of law, He majors in intellectual Property, Media and Innovation law.

16/

23.08.2016

Reviewing Production Sharing Contracts for Gas Companies Olufola Wosu

new technologies on its own within a given time frame without external support.

G

Government Profits Government shares potential profits without having to make a direct investment.

as projects cover a wide range of activities, from upstream to midstream and downstream sectors.

These activities include exploration, development, production, transportation, importation and marketing of products.

Possibility of Risk The risk of not finding gas in commercial quantity is worth considering, the drop in the price of gas for International Gas companies and political risks of expropriation by host states, make the gas industry a bit risk intensive.

The nature of the Gas industry in Nigeria makes it a bit unattractive for commercial lenders to agree to finance such projects when they are embarked upon by smaller companies. Even when such financing is available, it comes with high interest rates such that default is not particularly uncommon.

Reluctance of Oil and Gas Companies to Explore for Gas Nigeria needs clear growth in critical areas of the gas sector such as exploration, production, processing, supply and distribution. Monetising natural gas would require fairly decent investments in infrastructure that address the five component areas of gas availability, affordability, deliverability, funding and legal and regulatory framework.

In this paper we will examine Production Sharing Contracts which have been used as a means of finance and risk management for exploration activities in the gas industry. It has been extensively used in the oil industry as an alternative means of financing exploration activities, most likely because such funds are not readily available through corporate lending due to the high risks involved in carrying out these activities.

Model PSC for Gas? The Senior Technical Adviser, Upstream and Gas, to the Minister of State for Petroleum Resources, Mr Gbite Adeniji, was quoted as having said that, “We are working hard on gas terms for PSC concessions.

We should consider gas development a matter of strategic importance. Therefore, we need to develop an appropriate legal and regulatory framework.”

It is this writers opinion that once the gas terms are ready, it may be in order to expect a model PSC for gas.

Model Gas Contracts Are Initial Negotiating Points.

“Model contracts” are the initial negotiating points from which the government and the Gas Company proceed in their journey towards a mutually beneficial Gas PSC contract. Consequently, negotiating Gas contracts requires acumen, knowledge, foresight and plenty of common sense as well.

Production Sharing Contract (PSC) In a PSC, the NNPC engages a competent contractor usually an International Oil Company (IOC) to drill for gas on NNPC’s wholly held acreage.

The contractor undertakes the initial exploration risks and recovers his costs if and when gas is discovered in commercial quantities and extracted.

History of Production Sharing Contracts Indonesia pioneered the first PSC in 1966 through Permina, the state oil company. The contract system was evolved due to the imbalance in the traditional concessionary system regarding Government-take.

Reviewing a PSC This analysis is based on publicly available information such as model PSC terms published in Nigeria and other countries’ petroleum legislation and websites.

In reviewing a PSC, it might be wise to use a basic checklist that covers issues like; who are the Parties to the contract? What exactly, is the subject of the PSC? What is the Description of contract area? What is the Duration of contract? What are the terms for Obligatory Exploration, Evaluation work and Declaration of Commercial Discovery?

What is the format for Production Sharing?

Demerits of PSCs: The Nigerian Experience Artificial Expenses The IOC may decide to slow down the pace of production, be wasteful or extravagant in its exploitation especially when the operator knows his expenses would be fully met by the sale of gas produced.

What is the Tax rate? Is there need for a Stabilisation Clause? Where is the venue for Settlement of Disputes? What is the preferred Choice of Law? Are the essential safety clauses properly worded?

What are the provisions for risk allocation and indemnity clauses?

Contract Review and Environmental Protection There is a possibility that basic contract review and negotiation can help stem the tide of pollution and environmental degradation by making sure we negotiate and include clauses that enact stringent conditions for environmental protection.

Contract terms are very important because they determine how much Nigeria as a producing country earns from it natural resources; and they can strengthen the regulatory power of government to enforce environmental, health and other standards, if standard legal and regulatory systems are not well established.

Agreed Damages Clause for Pollution Insert a clause stipulating the minimum fine for gas flared, especially after a certain period of grace.

Examples of Key Provisions in a PSC: Parties to the contract: The parties are usually the IOC and the national oil company (NOC).

Description of contract area: The contract area has to be delineated into blocks and authorised for Exploration and Production by the Federal Government. Questions arise: Will the existing OMLs which cover both oil and gas be split into two, what happens when the original holder of the OML is not interested in gas? Will the new OML cover either oil or gas? Is there legislative backing for any modification of the existing license regime?

Duration of contract: The PSC stipulates the validity period of the contract. The IOC is not allowed to exceed the contract period and must ensure that all commercial discoveries of gas are exploited within the contract period.

Work Commitment: The IOC must carry out exploration and evaluation work until a commercial discovery of gas is made. There is a Minimum Work Programme and Expenditure clause. This clause provides for the minimum operations and expenditure.

Management and Supervision of the operations: The Model PSC provides for a Management Committee to provide the direction in respect of all matters pertaining to the gas operations and work programs and budgets.

Funding of the Operations: The IOC/contractor in a PSC is responsible for funding the gas exploration work. The NOC’S exploration payment obligations are often “borne” by the IOC and repaid by the NOC out of production gas. In addition the IOC bears exploration risk if no gas is discovered.

National Interest Provisions/ local content: A PSC usually contains clauses to enhance or protect the national economic interest, by providing in some cases provisions relating to the transfer of technology, training of local employees and the exercise of a clear preference for local contractors.

This is in addition to the Local content legislation

already in force.

Production Sharing: The PSC provides for how the IOC/contractor will recover his costs, the allowable percentage of recovery and how production will be shared. Common items found in PSCs are royalty gas, cost (recovery) gas and profit gas.

Tax: The PSC states the taxes that the IOC/ contractor would be subjected to.

Stabilisation Clause: Modern stabilisation clauses tend towards mutual agreement before legislative changes that affect the contract are carried into effect. Where a state acts contrary to its stability guarantee in the PSC, such acts tend to justify the award of damages for contractual breaches.

Settlement of Disputes: Disputes between the parties arising from the PSC are settled by arbitration by an independent expert or, in the event there is no reconciliation, by arbitration, pursuant to the rules of the UNCITRAL Arbitration Rules.

Choice of Law: Parties are allowed to choose the law that would govern the contracts and any disputes that may arise. In choosing the law, the IOC/contractor tends towards general principles of international law which they are seemingly more familiar with.

The Umbrella Clause Might also be Useful This means that the contracting state is under interstate obligation to observe investment commitments, allowing the IOCs the right to resolve breaches of state contracts under international law by an international arbitration.

Abandonment/Decommissioning The PSC provides for a Decommissioning clause for each Development Area. This is quite commendable as the IOC is under obligation to properly clean up after gas operations.

Benefits of Production Sharing Contracts Control PSCs give the host government and its National Oil Company a high degree of control and participation, (well this is in comparison to the limited control given to a non-operator under a JOA).

Frees up Cash flow The funding arrangement is beneficial for an NOC participating in the project. The good thing is that even after production begins and the NOC is required to finance, the project payments are made from gas production rather than cash.

Reliance on the Technical Expertise of IOCs and Perhaps Tech Transfer A PSC allows government to rely extensively on the technical expertise of IOCs. However the Nigerian experience is that we have been unable to achieve technology transfer through the use of technology transfer clauses. A key issue often neglected with transfer of technology is how to construct a receptor to capture the transferred technology and ensure that it is fully internalised to enable it blossom and grow to create similar

Mild Sanctions PSCs are contracts. Violation of a legal statute is an offence, subject to legislatively approved sanctions and penalties while violating a contractual provision is less costly than the violation of a regulation because only in the case of a serious or material breach of contract is the termination of the agreement a possibility.

Minefield of Exceptional Situations Making contracts into law creates a legal infrastructure of exceptional situations; little possibility of developing a coherent and comprehensive legal system as can be seen in the medley of laws regulating oil and gas in Nigeria.

Less Exposure for Government Government generally has less knowledge about potential of the gas fields than the gas company, even when there are lengthy tech transfer clauses.

Governmental Conflict of Interest This occurs where government holds significant shares. It has to balance the desire for higher profits with the enforcement of environmental and other regulations and most times it succumbs to the desire for more profits at the expense of proper enforcement of the law.

Emergence of Social Normative Norms in Oil Pollution?

Lax enforcement of the law in the area of environmental degradation eventually results in whiplashes and hostility from the host communities targeted at the International Oil Company.

IP/Data Protection in the Gas Industry Gas monetisation is intensely Intellectual Property-centric, it is critical that gas companies get timely advice on IP issues in Gas. It is also critical that Nigeria begins to develop home grown gas technology protected by IP. The unique value proposition is that gas contracts are enforceable against the parties to the contract, but IP rights are negative rights, which are potentially enforceable against the whole world!

Research and operations in the gas industry constantly produce new pipelines, ideas, procedures, software, equipment and plenty of data, especially in areas bordering on pipeline integrity, gas leak detection systems and pipeline safety. This innovation has potentially transformed the oil and gas industry from a commodity market to a knowledge/ innovation/intellectual property-based industry.

In addition, the divestment of assets by oil and gas companies can lead to employee mobility - the kind of employee mobility that usually makes the loss of valuable data or even intellectual property more probable.

It may seem wise for gas companies to pay more attention towards protecting such IP and proprietary information - especially as it concerns former and disgruntled employees.

Conclusion Negotiating a Production Sharing Contract requires legal knowledge, foresight and common sense. The number of model clauses successfully incorporated in the final Production Sharing Contract depends largely upon negotiating power of the parties involved. Even so, the information contained in this piece will enlighten the Government and International Oil Company/contractor as to some possible alternatives and possibly foster frank discussion between the Government and the Oil Company prior to signing any agreements.

Olufola Wusu is a Commercial, Oil and Gas and I.P. Lawyer based in Lagos

47

T H I S D AY •TUESDAY AUGUST 23, 2016

TUESDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

Under-23Team to Get Warm Welcome on Arrival

Nigeria’s Under-23 team celebrating their bronze winning feat last Saturday in Brazil The Ministry of Youth and Sports and the Nigeria Football Federation (NFF) and the have concluded plans to give Nigeria U23 a suitable welcome when they return from Brazil.

The Nigerian team to the

games defeated Honduras 3-2 to win the 2016 Olympics men’s football bronze medal in Belo Horizonte on Saturday.

According to goal.com, coach Samson Siasia’s squad was received on arrival in Lagos yesterday night and would

ITTF Celebrates Quadri’s Feat at Rio Olympics The Rio 2016 Olympic Games has ended but the scintillating performance of Nigeria’s Aruna Quadri made one of the major highlights listed by the International Table Tennis Federation (ITTF).

In the Rio 2016 Wrap Up published at the weekend on the website of the world table tennis ruling body, Aruna was described as the Africa star of Rio. “The men’s singles event also featured fantastic performances from two players in particular: Hugo Calderano and Quadri Aruna. Calderano made full use of the home crowd advantage as the Brazilian negotiated the likes of Par Gerell and Tang Peng on his way to a round four finish,” ITTF said.

The body added: “Nigerian contestant Aruna Quadri caused arguably the biggest upsets in the category as the 27th seed beat Chuang Chih-Yuan (6th) and Timo Boll (10th) before eventually exiting to Ma Long in the last eight – becoming the first African to reach that stage of an Olympic Table Tennis competition.”

Quoting Quadri after the feat, “This is amazing, I don’t know what to say. My fans made me do this. Thank you for all the Brazilian spectators for their support. They gave me so much energy. This feels so good, it is a dream come true.”

Also, the women’s singles tournament at Rio 2016 saw China’s Ding Ning win her first ever Olympic singles gold medal, after her victory over the London 2012 champion Li

Xiaoxia (China). Both finalists brought their ‘A’ game as two of the world’s top competitors fought it out for the ultimate prize, but there could only be one winner and it was Ding who took it in the seventh game to seal the gold (11-9, 5-11, 14-12, 9-11, 8-11, 11-7, 11-7).

Sadly, Li Xiaoxia confirmed that Rio 2016 would be her final appearance for China, “It’s with pity to retire, but it’s for a better future.” Li added, “Life can’t be always sweet, and I’ll face my retirement with a smile. Thank you table tennis for everything that the sport has gave me.”

Ma Long stood victorious over fellow compatriot Zhang Jike in the Men’s Singles final, as China won their second Table Tennis gold medal of the Games.

With the top two seeds going head-to-head there was potential for a thrilling final, however, after edging the first end in deuce, Ma thundered past Zhang in the following three games to win the gold medal on his Olympic singles debut (14-12, 11-5, 11-4, 11-4).

Jun Mizutani played some of the best Table Tennis of his career at Rio 2016, and he did his country proud by becoming the first Japanese competitor to win a singles medal at an Olympic Games with his victory against Belarusian Vladimir Samsonov in the bronze medal match.

Two major achievements came from the Women’s Team category, as Germany won silver and Mima Ito won a team bronze with Japan.

be accorded with another in Abuja later tonight.

“Based on the directives of the minister of youths and sports, the Under-23 Team will be well received on arrival tonight (Monday night) in Lagos. The team

would be accorded another befitting reception on arrival at the Nnamdi Azikiwe Airport tonight ,” a top official in the ministry disclosed last night.

Meanwhile, coach Siasia confirmed the team’s arrival while appreciating his players

and technical crew for a job well-done.

“We are arriving tonight in Lagos via South African Airline,” he told Goal.

“We are anxious to get back home to meet our darling fans and families having stayed

away for months while preparing for the Rio Olympics.

“We are grateful to that we are not coming back to Nigeria empty handed. Kudos to the players, coaches and the other backroom staff of the team for a job well done.”

RUSSIA 2018 WORLD CUP

Enyeama, Emenike Reject S’Eagles Come-back Super Eagles coach Gernot Rohr has failed to convince Vincent Enyeama and Emmanuel Emenike to stage a comeback to international football.

Lille goalkeeper Enyeama quit the Eagles after a major falling out with then coach Sunday Oliseh last year, while striker Emenike cut short his international career soon after without any explanation.

Rohr has swung into action to ensure the Eagles are back flying again in time for 2018 World Cup qualifying campaign in October in Zambia.

A team official disclosed to Africanfootball.com that “Enyeama and Emenike have rejected an offer from the new Eagles coach to return to the team for the World Cup qualifiers.

“He was told before hand not to bother because the players have made up their mind not to represent the country, but he still went ahead and spoke to the two players and he got a big no.

“In the case of Enyeama, the coach argued he is one of the best goalkeepers in France and as such everything be done to get him back to the team.”

Emenike has rediscovered his form at Turkish club Fenerbache since loan spells in UAE and West Ham United last season.

In another development, the new Super Eagles gaffe will earn $47,000 a month.

This sum converted to local currency at the current exchange rate comes down to over N18m and it is a geometrical jump from the five million Naira Sunday Oliseh pocketed before he quit his post in February.

The Franco-German has signed a two-year contract, which is now believed will be bankrolled by an oil

company owned by Ifeanyi Ubah.

Officials have already argued that Rohr will be assisted by three others he has handpicked – an adviser, a fitness trainer and a video specialist.

The former Burkina Faso and Niger coach will be the one responsible for these assistants.

Rohr will be in charge of next month’s AFCON 2017 qualifier in Uyo against Tanzania, which will mainly serve as warm-up to Nigeria’s opening 2018 World Cup qualifier in Zambia on October 3.

Lagos Governor’s Cup Tennis Gets $100,000 Prize Boost Femi Solaja Inspite of scarcity of foreign exchange due to down turn in the country’s economy, organisers of annual Governor’s Cup Lagos Tennis Championship have increased the total prize money of the competition from $80,000 to $100,000.

The increment will take effect from the 16th edition which holds from 8-22 October, 2016 at the Lagos Lawn Tennis Club, Onikan.

Secretary General of Nigeria Tennis Federation (NTF) Gloria Ekwempu in a telephone interview last night confirmed that the

International Tennis Federation (ITF) has been notified about the increment, while the world tennis governing body has already indicated it on its website.

Since 2003 when the competition became an approved Pro Circuit of ITF, the total prize money has been 80,000 dollars with the men’s winners (singles and doubles) earning 30,000 dollars in the two legs event, while the women’s used to go home with 50,000 dollars. But this year, the men’s winners will take home the sum of 50,000 dollars, while the women prize money remain the same.

One of the reasons for the

increase in prize money is to attract to the competition higher ranked players across the world.

The tournament, which comprises of Futures 3 and 4,is being organised annually to celebrate the sitting governor in Lagos State since the administration of Asiwaju Bola Ahmed Tinubu. This year’s edition will be the second under the government of Mr Akinwunmi Ambode.

The Governor’s Cup Lagos Tennis Championship has over the years attracted over 400 players from more than 50 countries of the world at every edition.

Seventeen-year-old French

lady, Tessah Andrianjaftrimo and Aldin Setkic of Bosnia respectively won the women and men’s singles of the first leg of 15th edition held last year, while Dutchman Antal Van Der Duim and Conny Perrin of Switzerland respectively won the men and women’s singles of the second leg.

The Governor’s Cup has been sponsored over the years by FCMB and Etisalat Nigeria and others such as Deux Projects Ltd, Lagos State Internal Revenue Service, LIRS, CCECC, Julius Berger Plc, Naston Ltd, LASACO Plc. and a host of other private individuals.

Tuesday August 23, 2016

TR

UT H

& RE A S O

N

Price: N250

MISSILE Oladipo to Judiciary

“Although the undercurrents of the matter have been chronicled in a petition sent to the CJN and the National Judicial Council (NJC) for appropriate disciplinary action, it is disturbing that the same Justice Liman, who is the most senior and the Administrative Judge in the Port Harcourt Division of the court, has not relented in his questionable actions” – A former National Secretary of the Peoples Democratic Party, Prof. Wale Oladipo, decrying the judiciary following the many conflicting orders and judgments emanating from different divisions of the Federal High Court and the High Court of the Federal Capital Territory (FCT) as they relate to the leadership crisis in the PDP.

AMINUWAZIRITAMBUWAL GUEST COLUMNIST

As John Kerry Arrives Nigeria N

igeria, and particularly our state, Sokoto, will this week host the Secretary of State of the USA, John Kerry, on a two-day working visit.

Our August visitor is an important guest whose contributions to his country’s diplomatic engagement have received praise from many quarters. His commitment, and by extension that of President Barack Obama, to international cooperation and preservation of democracy, have fostered friendship and bolstered standards across the globe.

We are honoured that Secretary Kerry has not only decided to visit Sokoto, but has opted to speak to our young people on dangers posed by intolerance and violent extremism.

To start with, Nigeria’s relationship with the United States is a glorious one steeped in history and shared values. As President Buhari pointed out during his last trip to Washington, Nigeria values the special relationship it has with the US, and will work closely with it and other allies to develop governance initiatives whose aim is to ensure that Nigeria’s wealth benefits all its people. The election that brought the present administration to power has reaffirmed the confidence of all Nigerians in democracy as a system of government. Since coming to power in May 2015, concerted efforts have been put in place by the present administration to improve the competence and forthrightness of Nigerian institutions. More than at any moment in our recent history, we are setting credible ground rules for public officials and recovering stolen funds. At the same time, coordinated efforts are being taken to improve healthcare delivery, build critical infrastructure and enhance national integration.

Secretary Kerry will step into Sokoto at a time of renewed interest in the ideals and tenets of the pre-colonial Sokoto Caliphate. The world is now bedevilled by violent extremism whose perpetrators claim to be representing Islam; a religion universally adored for promoting virtues including sacredness of life, freedom of worship, respect for and protection of minorities, treatment of others with justice and kindness, among others. Here now come the lessons we can learn from Sokoto Caliphate.

Over 200 years since the establishment of the Caliphate, our people have become known for their religious tolerance, moderation and promotion of understanding among various faiths and ethnic groups especially in Nigeria.

Apparently, such disposition did not start overnight. The founders of the Caliphate made conscious efforts during their lifetimes to instill justice, peace, good neighbourliness and rule of law among its citizens. From its early years and until it evolved into a quasi-federal system of emirates with balanced responsibilities, a central function of the Caliphate leadership has been to try to mediate conflict, and ideally, preempt conflict before it undermines the integrity of the state. Huge success was achieved in that direction because the intelligence-gathering ability of those saddled with the responsibility of maintaining peace was utilised effectively.

In addition, the founder of the Caliphate, Usman Dan Fodio, his son Muhammadu Bello, brother Abdullahi (Gwandu), daughter Nana Asma’u and their key lieutenants, while known for their military skills, also promoted scholarship.

Each contributed books of poetry and texts on religion, politics, and history. They encouraged scholarship among members of the society.

Women empowerment and story of Nana Asma’u

The story of Nana Asma’u will provide deep insight into the position of women in contemporary Sokoto life over two centuries ago. As a respected community mobiliser, she joined her father, the revered Sheikh Danfodio, brother and uncle, in devoting significant time to chronicle histories, writing poetry, and Islamic studies. According to Wikipedia, she was well educated in the classics of the Arab and the Classical world, and well versed in four languages (Arabic, the Fula language, Hausa and Tamacheq Tuareg), Nana Asma’u had a public reputation as a leading scholar in the most influential Muslim state in West Africa, which gave her the opportunity to correspond broadly. She witnessed many of the wars of the Fulani War and wrote about her experiences in a prose narrative Wakar Gewaye “The Journey”.

As the Sokoto Caliphate began as a cultural and religious revolutionary movement, the writings of its leaders held a special place by which later generations, both rulers and ruled, could measure their society. She became a counselor to her brother when he took the Caliphate, and is recorded writing instructions to governors and debating with the scholars of foreign princes.

Amongst her over 60 surviving works written over 40 years, Nana Asma’u left behind a large body of poetry in Arabic, the Fula language and Hausa, all written in the Arabic script. Many of these are historical narratives, but they also include elegies, laments, and admonitions. Her poems of guidance became tools for teaching the founding principles of the Caliphate. Asma’u also collaborated closely with Sultan Bello, the second Caliph. Her works include and expand upon Danfodio’s strong emphasis on women leaders and women’s rights within the community ideals of the Sunnah and Islamic law.

Others of her surviving written works are related to Islamic education: for much of her adult life she was responsible for women’s religious education. Starting around 1830, she created a cadre of women teachers (jajis) who travelled throughout the Caliphate educating women in the students’ homes. In turn, each of these jajis in turn used Asma’u’s and other Sufi scholars writings, usually through recited mnemonics and poetry, to train corps of learned women, called the ’yan-taru, or those who congregate together, the sisterhood’. To each jaji she bestowed a malfa (a hat and traditional ceremonial symbol of office of the pagan Bori priestesses in Gobir) tied with a red turban.

The jajis became, thus, symbols of the new state, the new order, and of Islamic learning even outside women’s community. In part this educational project began as a way to integrate newly conquered pagan captives into a Muslim ruling class. It expanded, though, to include the poor and rural, training teachers who travelled across the sprawling Caliphate.

Contemporary legacy Asma’u’s continued legacy rests not just on her literary work and role in defining the values of the Sokoto state. Today in Northern Nigeria, Islamic women’s organisation, schools, and meeting halls are commonly named after her.

She re-entered the debate on the role of women

in Islam in the 20th century, as her legacy has been carried by Islamic scholars and immigrants to Europe and its academic debates. I have highlighted her role to dismiss the notion that women are denied basic rights in this part of the world. That is far from the truth. We are the first to admit that more needs to be done to improve impact and reverse negative statistics of women participation in socio-economic activities.

But Asma’u’s story clearly shows that with dedication and commitment, our women can reach the pinnacle of their chosen paths. Few months ago, Justice Aishatu Dahiru retired from the Bench after serving meritoriously for 20 years as the Chief Judge of Sokoto State. Just three weeks ago, Amina Yahaya, a 400 level student of English Language, became the first President of the Students Union Government of Usmanu Danfodio University, Sokoto, a feat so rare that women who have attained such heights in the North in the last 50 years can be counted on the finger tips.

As bequeathed to us by our founding fathers, Sokoto is committed strongly to increasing mutual understanding, keeping good relations with others, and working to keep our community and our nation safe. We believe the world can learn a lot from us in areas like communal harmony, religious understanding, and tolerance towards all faiths. To ensure continued peace

in our state, our government has aggregated the needs of our citizens and zeroed down on critical sectors like education, healthcare delivery, agriculture, development of infrastructure, job creation through development of small and medium scale enterprises, women and youth empowerment, development of solid mineral sector as well as implementing community development initiatives at the grassroots level.

We have declared a state of emergency in the education sector, and matched our words with action by allocating the highest percentage of funds in our 2016 budget to the sector. The 28 per cent we allocated is more than the percentage recommended by UNESCO. Through personal and community interactions, we have fostered relationships of trust not just with our citizens, but with peoples of other faiths and ethnic inclination. This level of trust helps contribute to human resource development and strengthening the foundation for nation-building.

We, the political and religious leadership under the leadership of Sultan Muhammad Sa’ad Abubakar III, have committed ourselves to contributing to the socio-economic development of our state, and to strengthen friendship and mutual understanding between all Nigerians irrespective of tongue or faith.

•Tambuwal is the Governor of Sokoto State

OBASANJO GREETS BABANGIDA AT 75

REMEMBER I TOLD YOU NOT TO TAKE SIDES WHEN THOSE TWO POLITICIANS WERE “FOOLING” AROUND!

I DIDN’T! …INSTEAD, I STOOD

BY AS THEIR SUPPORTERS WERE TAKING DIGS AT ONE ANOTHER AND MAKING A FOOL OF THEMSELVES! 23-08-16

Printed and Published in Lagos by THISDAY Newspapers Limited. Lagos: 35 Creek Road, Apapa, Lagos. Abuja: Plot 1, Sector Centre B, Jabi Business District, Solomon Lar Way, Jabi North East, Abuja .

All Correspondence to POBox 54749, Ikoyi, Lagos. EMAIL: editor@thisdaylive.com, info@thisdaylive.com. TELEPHONE Lagos: 0802 2924721-2, 08022924485. Abuja: Tel: 08155555292, 08155555929 24/7 ADVERTISING HOT LINES: 0811 181 3086, 0811 181 3087, 0811 181 3088, 0811 181 3089, 0811 181 3090. ENQUIRIES & BOOKING: adsbooking@thisdaylive.com