Monday 19th September 2016

Elumelu to Clinton,Trump: Africa Needs More US Engagement in Trade, Investment Obinna Chima Chairman of Heirs Holdings,

Mr. Tony Elumelu, yesterday appealed to the leading candidates in the United States presidential election — Democratic Party’s Hilary

Clinton and Republican Party’s Donald Trump — to retain the prevailing US-Africa policy, saying it was adequate and would only need to be expanded and scaled up.

“On US-Africa policy, some things don’t need

to change,” he told his audience as the keynote speaker at the US Senator Chris Coon’s Opportunity Africa Conference 2016 in Delaware, adding: “What they need is to be expanded and scaled up. In other

words, we need more US engagement in Africa through mutually beneficial trade and investment.”

He said this would be his and 200 other US and African political and business leaders, including President

Obama and over 30 African presidents’ focus during next week’s US-Africa Business Forum in New York.

“We would discuss how to strengthen mutually beneficial economic ties between the African and American

peoples," the chairman of Heirs Holdings said.

Elumelu, who spoke on the theme, entrepreneurship, is one of Africa’s leading entrepreneurs, who is Continued on page 9

PDP Crisis: Sheriff Lists Conditions for Peace, Says Party Constitution is Supreme… Page 9 Monday 19 September, 2016 Vol 21. No 7816. Price: N250

www.thisdaylive.com TR

UT H

& RE A S O

N

Recession: The Worst is Over, Says Emefiele In a sign of recovery, $1bn capital inflow recorded in two months CBN Restates need for partial sale of oil assets to boost reserves, reflate economy Chika Amanze-Nwachuku As Nigerians grapple with the worst economic crisis to befall the country in more than two decades, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has assured the public that the economic recession will soon be over, given the strategic measures being put in place by the monetary and fiscal authorities to turn the economy around.

Continued on page 9

“I repeat, the worst is over, Nigeria’s economy is on the path of recovery and growth. If you are a bystander, you are losing… join the train now before it leaves you.”

– CBN Governor

…$66bn Spent On Bureau de Change in 11 years Chika Amanze-Nwachuku The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has disclosed that the central bank frittered away a whopping $66 billion over

an 11-year period funding Bureau de Change (BDC) operators, blaming this as one of the several policies that led to the erosion of Nigeria’s foreign reserves and is partly to blame for the economic crisis in the

country today.

Speaking to journalists at the weekend, Emefiele recalled that in September 2008, Nigeria’s foreign reserves stood at $62 billion Continued on page 10

Ibori Raises Allegations of Corruption against British Police… Page 59

Emefiele

2

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

3

4

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

5

6

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

7

8

MONDAY SEPTEMBER 19, 2016 T H I S D AY

9

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

PAGE NINE

PDP Crisis: Sheriff Lists Conditions for Peace, Says Party Constitution is Supreme Bolaji Adebiyi and Onyebuchi Ezigbo Factional National Chairman of the Peoples Democratic Party, Senator Modu Sheriff, said at the weekend that he was open to reconciliation with the Senator Ahmed Makarfi-led Caretaker Committee of the party, explaining, however, that he would only accept resolutions that were in conformity with the constitution of the party.

“I am open to reconciliation.

But whatever we are going to do must be grounded in the constitution of the party,” he told Thisday in an exclusive interview in Abuja.

The PDP has been immersed in crisis since the botched May 22, 2016 National Convention of the party, where the party practically broke into two distinct factions with Sheriff insisting that he remained

the national chairman of the party, and refusing to recognise the Makarfi Committee.

Another convention slated for August 17, 2016 in Port Harcourt also failed as a deluge of conflicting court orders deepened the division within the party.

Two reconciliation committees, the Board of Trustees’ Prof. Jerry Ganaled Committee and the Governor Seriake Dicksonled Committee instituted by the National Executive Committee of the party, have been unable to resolve the logjam as both factions dug in their positions endangering the chances of the party in the forthcoming governorship elections in Edo and Ondo States.

But Sheriff told Thisday that his insistence on the due processes laid down by the party’s constitution for

leadership succession was in the best interest of the PDP, saying that the crisis arose from the refusal of some leaders to respect party rules and regulations.

“The problem is that they are used to doing things the way they like. They can elect a national chairman today and throw him away like toilet paper tomorrow,” he said, explaining that he was poised to put an end to the impunity in the party.

Saying that the party must be rescued from a handful of people, who felt they owned the PDP, and returned to the members, Sheriff said his mission was to reposition the PDP to a winning electoral machine, contending that this was only possible if party members were given a sense of ownership by the leaders respecting their rights as equal stakeholders.

Specifically on the way out

when a chairman resigns, the NEC would appoint another person from the zone of the former chairman to act, pending the election of a substantive chairman. As long as there is no elective chairman I remain the National Chairman,” he

argued.

He said he did not foreclose accommodating the Makarfi faction, preferring, however, to deal more with the Governor Dickson-led reconciliation committee, which he said had shown more integrity in the handling of the crisis.

According to him: “Dickson Committee was the one officially appointed by the party and that is the one I have confidence in. It is a standing committee of the party. We made him a chairman and it was made by everybody then, we didn’t foresee that we were going to have problems. He was elected in NEC as chairman of reconciliation committee.

So that has mandate, he has authority from the party to bring reconciliation. Leaders of the party can also do this but I won’t accept anyone who has soiled his hands.”

with Africa.

“So when you meet, write, call and email your political candidates and representatives and the elected president in November, tell them that when it comes to Africa, you want more.

And by more, I mean more engagements, more positively impactful policies and more development and commercial investment in Africa," Elumelu said.

Closing his address at the eventful conference, Elumelu said: "I am an

unashamed optimist and I believe that working together, in shared purpose, which is what Africapitalism is about, we can help usher in economic transformation that will ensure Africa is a critical player in the 21st century global economy."

“There was a time in this country when we survived on revenues from groundnut pyramids in the northern part of the country. There was a time when this country survived on revenue from cocoa that was being produced and exported to the extent that the tallest building at the time, Cocoa House, was built with revenues from the export of cocoa.

“There was a time when this country survived on revenues generated from the production and export of palm oil and palm oil products from the mid-western and south-eastern parts of the country.

“At that time, I’m talking about the 50s and the 60s, Nigeria was the largest producer and exporter of palm produce in the world.

Unfortunately, we abandoned it because we found oil. I wish what we did at that time was to ensure that we held strongly to our potential in agricultural sector.

“If we had held strongly to our potential in the agricultural sector and in the same vein, held strongly to the potential that we have because we found oil, our story will be different today,” he said.

Citing Norway, one country that saved for the rain day, he said: “Norway is a country with a population of less than five million people. It produces and exports fish today, but it also produces crude oil to the extent that today it has one of the highest investments in its sovereign wealth fund (SWF).”

According to him, Norway

has $873 billion in its SWF, adding: “But the country also takes very seriously its fish production to the extent that it survives on an annual basis from revenues it generates from the export of fish.

“What does the country do with revenues from crude, it invests it at any given time.

And when the country wants to make use of the fund, it only uses it for infrastructure development. That is a country that has planned for its people. But unfortunately, we didn’t plan this way for our people, and that is why we are where we are today.”

puncture their supply in the market on demand for FX in the spot market and so that they could do their business without fretting over the exchange rate.

“These are some of the actions we’ve taken and today I must say it is successful, but it is important to also speak on how we got here.”

of the logjam, he said he was ready to team up with the Makarfi faction to organise another convention in Abuja provided that his position as the national chairman would not be compromised.

“I think we have to reconstitute the convention committee properly and put in place a zoning committee that is based on the principles laid down by the party constitution, which does not recognise caretaker committee at the national level,” he said.

Told that this might not be acceptable to the Makarfi faction, Sheriff insisted that only the National Executive Committee could constitute the committees and that if the provisions of the constitution were followed he remained the only national chairman that could summon the meeting of the NEC for this purpose.

“The constitution says

Sheriff

ELUMELU TO CLINTON, TRUMP: AFRICA NEEDS MORE US ENGAGEMENT IN TRADE, INVESTMENT dedicating time and money to create a new generation of African business women and men, committing $100 million of his own money to the laudable project.

According to him, “If we give our people the economic tools to thrive and

living standards increase, the political challenges that Africa face can be tackled and fundamental positive change can be assured.”

He, therefore, called on the next US president to work in shared purpose with Africans on

implementing innovative solutions to the complex but surmountable challenges in Africa.

He challenged the American electorate to impress it on their candidates and the eventual president to engage more

RECESSION: THE WORST IS OVER, SAYS EMEFIELE Speaking in Lagos during an interactive session with journalists at the weekend, Emefiele emphatically stated that the “worst is over”, adding that the Nigerian economy was already on the path of recovery.

The governor equally reiterated his call for the federal government to partially sell some of its oil joint venture assets, saying that the proceeds raised from the sale would go a long way in boosting Nigeria’s foreign reserves and reflating the economy through infrastructure projects.

Emefiele also expressed optimism that the liberalisation of the foreign exchange (FX) market was starting to pay off, revealing that the country had recorded $1 billion capital inflows from foreign investors since the market took off almost three months ago.

Low Commodity Prices to Blame He blamed the country’s economic crisis on the global crisis, “which has seen commodity prices dropping in recent times as well as the geopolitical tensions all around the world”.

This notwithstanding, the CBN governor was optimistic that the Nigerian economy would rebound by the fourth quarter of this year, as the monetary and fiscal authorities had put adequate measures in place to stimulate and reflate the

economy.

“We are already in the valley, the only direction is go up to the hill and government is doing everything possible to move up the hill as quickly as possible,” he said.

Emefiele declared: “I’m optimistic that with the action taken by the government, the monetary and fiscal authorities, by the fourth quarter, you will see the evidence that we have started to move up north, in the direction of the hill and out of the recession.

“I repeat, the worst is over, Nigeria’s economy is on the path of recovery and growth. If you are a bystander, you are losing by being a bystander, join the train now before it leaves you.”

The CBN governor, who expressed concern over the hardship Nigerians are contending with owing to the economic downturn, noted that aside from the collapse of commodity prices and geopolitical tensions, some of the actions that the US Federal Reserve Bank took, following the mortgage crisis of 2009, have had an adverse impact on emerging and frontier markets such as Nigeria.

“I must apologise when you said people are suffering, I must apologise that this is happening to our people, but I must confess that what is happening today is as a result of a global crisis; a global crisis in the sense that we’ve seen commodity

prices dropping, we’ve seen geopolitical tensions all around the world. Here, we are talking about political tensions between Russia, Ukraine and the US and EU staying on one side and watching; political tensions between Saudi Arabia and Iran, trying to play their game.

“Of course, the US Fed, following the mortgage crisis of 2009 took a couple of actions, which given the size of the US economy in the world, have had an impact, both positive and negative on emerging and frontier markets which is where Nigeria unfortunately stands today,” he said.

On how Nigeria plunged into her worst recession in decades, Emefiele blamed this on the country’s overdependence on oil receipts, the desire for imported products and the absence of a proper economic planning by successive governments.

Diversification is Key He pointed out that prior to the discovery of oil, agriculture was the livewire of the Nigerian economy and expressed regrets that Nigerians abandoned agriculture.

“I think that when you want to address the question of how did we get here (recession), it is important to go back into the history to remind ourselves that there was a time in this country when we survived only on revenues from agriculture produce.

FX Liberalisation Yielding Results The CBN governor added that the liberalisation of the FX market was starting to pay off despite the depreciation of the naira, disclosing that the new FX regime had attracted close to $1 billion inflows into the market in almost three months.

He said: “I must say at this time that we are somewhat happy that it is paying off because in two and a half months, we’ve seen at least close to $1 billion coming in as inflows into the market.

“And the reason this has happened over these two and a half to three months was because other than just liberalise the market, we brought into the market the OTC Futures market – a market that provides opportunity to reduce the volatility in the FX market so that people will not

‘We Must Spend Our Way Out of Recession’ Responding to concerns that some of the actions taken by the government have been insufficient to address the current situation, Emefiele explained that during recessions countries spend their way out of the crisis to stimulate their economies.

“Basically, what you would do is to spend your way out of the recession and we have not stopped talking about the fact that we need to spend our way out of the recession. I will tell you what has happened and what specific actions we have taken to take us out of this situation: the budget like you know was approved in May 2016 and of course by that time we had started to see signs that the economy was contracting.

“Unfortunately, the procurement process is such a long one in the public service, and you dare not breach the rules on the procurement process. I will give you an example, when you start a procurement process for an item, what happens is that Continued on page 10

10

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

PAGE TEN RECESSION: THE WORST IS OVER, SAYS EMEFIELE you first advertise in the newspapers calling for bids; that process takes 12 weeks, which is three months.

“Imagine starting a procurement process in say May or June, you will agree with me that by now, you will be opening the bids, now when you open the bids and see the numbers, you begin to negotiate prices, after that you go to the Bureau for Public Procurement (BPP), may be after that you go to Federal Executive Council (FEC) to get approval and that takes another six months.

“What all this means is that we must shorten this process, but shortening this process means that we need to have an emergency spending bill, which I am aware is ready before the National Assembly for approval. What that does is to remove all the bottlenecks that are involved in the process of procurement so that government will spend the money to stimulate the economy.

“Unfortunately, at the time the budget was being approved, we started also to see a reduction in revenues, we started to see the Niger Delta Avengers agitating and I must confess to you that at this time the revenue from oil exports is down to less than $500 million on a monthly basis from a peak of $3.5 billion sometime in 2015,” he said.

“On our side in CBN, what have we done when we found out that there was a likelihood this was going to happen, we started to advise that there was the need for spending. In March, we reduced the CRR from 30 per cent to 25 per cent and we told the banks; and this was despite the fact that inflation had also started to rise astronomically beyond our target.

“However, we said this cash we are giving you, about N1 trillion, we asked the banks to channel this money to agriculture and the manufacturing sector, as the reduction in CRR will help

to moderate interest rates and also improve industrial capacity that will moderate inflation.

“But I must confess unfortunately, this didn’t happen and because it didn’t happen, during the subsequent MPC meetings we said okay, we will reduce CRR again and by reducing CRR, what we want the banks to do is that we will not give them cash, but asked them to find primary agriculture projects or new manufacturing project, and send them to us in CBN, so we will disburse those funds to the banks and they in turn can loan this money at nine per cent to the relevant sector.

“Again, I must confess that till date, the result has not been very encouraging.

That is the reason the CBN continues to remain determined to ensuring that its intervention funds go directly to agriculture, either for its Anchor Borrowers’ Programme or its intervention to the micro, small and medium enterprises (MSME) some of the N220 billion would kick in a more aggressive manner to ensure that there is injection of liquidity that will help spur industrial and agricultural capacity.

“Part of what has been projected in 2016 is that one million market women will benefit from loans at subsidised rates, which will come from micro small and medium enterprise loans.”

Emefiele further revealed that the CBN was also in discussions with the fiscal authorities, especially the Office of the Vice-President that handles social spending, to see to it that “we put this in place as soon as possible so that market women across the country can get this loan at subsidised prices”.

“These are some of the actions we have taken and I’m optimistic that going forward, you are going to see more action that will stimulate the economy and turn around the

country again,” he stressed.

Partial Sale of Oil Assets Emefiele stressed that the monetary and fiscal authorities were working round the clock to reflate the economy, but reiterated his stance over a year ago that the federal government should consider selling some of its interests in the joint venture oil assets in order to grow reserves and invest in infrastructure.

He said: “We need more revenue, we need more money to come in not just in naira, but we also need more money in dollars and you will recall that in April 2015, even before this government came on board at the end of May 2015, I had in an interview with Financial Times of London, recommended that there was the need for the government to consider the sale of some of its investment in the oil and gas sector, particularly in NNPC and NLNG at that time.

“At that time close to around May, the price of oil was between $70 and $75 per barrel and I had actually consulted some experts, and they told me that if we sold between 15 and 20 per cent of our holdings in the oil and gas sector, we could have realised between $30 billion and $40 billion.

“Unfortunately, the market has gotten soft now, but I’m still optimistic that we could get between $10 billion and $15 billion, and if we get that kind of liquidity, it will help to stimulate and assist in turning the country's economy around.

“That proposal is still on the table, because after I made that recommendation, a couple of colleagues in the cabinet continue to talk about it that if we take that option, we will realise some inflow of foreign currency that we can really use to kick start or stimulate the economy.”

Between Growth and Curbing Inflation On the implication of increased spending given the current inflation rate of 17.6 per cent, Emefiele explained that the central bank would exercise caution so that excessive spending does not result in skyrocketing inflation.

“You can imagine that in December, the inflation rate was just above 9 per cent but below 10 per cent. However, between March and now, it has risen to 17.6 per cent.

“That is the reason the CBN considers its mandate of price stability as a core function, and that was why at the last monetary policy committee meeting, the MPC members were trying to weigh the balance between growth and inflation and we said if we allow inflation to grow at a rate that is astronomical and uncontrollable, it could be a problem and that was why we decided at that meeting to adjust the rate a little.

“But by the primary reason why we altered the rate in an upward direction was to see to whether we could see an increase in foreign investor flows.

“We did that to achieve a higher yield for growth and we adjusted it to encourage foreign investors and that is why I’m saying that I’m happy that the flows have started to come and we would try to see how to maintain the balance by seeing to it that the flows continue to come because when they come, you will get the dollars that we need to fund manufacturing and agriculture activities which in turn will help to moderate inflation.

“However we’ve heard a lot of criticism, and many have asked why should the MPC be pushing up the rate when it is supposed to pursue growth. But the objective we are very keen to achieve, and we trying as much as possible to achieve some balance, is whereby we attain growth

… $66BN SPENT ON BUREAU DE CHANGE IN 11 YEARS when crude prices peaked at $147 per barrel, noting however that rather than save the money or invest it in infrastructure and industry for wealth creation, previous governments embarked on frivolous spending, disclosing that in 11 years, Nigeria spent $66 billion funding BDC

TOP GAINERS NGN NGN % CONOIL 2.95 31.84 10.2 ASL 0.10 2.10 5.0 JOHNHOLT 0.03 0.66 4.7 PZ 0.85 19.50 4.5 UNITYBANK 0.03 0.70 4.8 TOP LOSERS NGN NGN % PORTPAINT 0.08 1.52 5.0 UNIONBANK 0.22 4.26 4.9 FIDSON 0.08 1.61 4.7 AIICO 0.03 0.62 4.6 NEM 0.03 0.81 3.5 HPE Nestle Nig Plc ₦826.00 Volume: 228.934 million shares Value: N2.109 billion Deals: 3,617 As at 16/09/16 See details on Page 37

operators.

He said: “In September 2008, Nigeria’s foreign reserves stood at $62 billion. But what did we do with $62 billion at a time crude price was in excess of $120 per barrel?

“What we could have done was to save the money, if we couldn’t save the money, invest it in infrastructure and industry that will create productivity and wealth for our people.

“Instead, the central bank at that time went about licensing Class A, Class B and Class C bureau de change operators.

For Class A BDCs, the central bank was allocating $1 million per week, for Class B, the CBN was allocating $750,000 per week and for class C BDCs, the central bank was allocating $500,000 per week. The CBN was among one of the few central banks in the world allocating dollar cash for BDC operations.”

He revealed that between 2005 and January 2016 when it was stopped, the CBN had disbursed $66 billion to fund the cash operations of BDCs

in Nigeria.

“What that meant was that in 11 years, we spent $66 billion funding the operations of BDCs which came to an average of $6 billion a year.

If we had thought of other ways to utilise our reserve, especially in 2008 when our reserves were as high as $62 billion, certainly we will not be where we are today,” said the visibly agitated Emefiele.

The CBN boss, who recalled his worst experience as the chief executive of Zenith Bank Plc and how he was punished for not participating in funding of BDC operations, said: “We had a situation where at that time, as the MD of Zenith Bank, there was a deputy governor of the central bank that would call to query me as to why I was not coming to the central bank to collect dollar cash to sell to BDCs. “I was informed that some people in Port Harcourt, Lagos and Kano were calling to complain that Zenith Bank was not selling dollar cash to BDCs, but of course the bank did not see any serious

need to sell dollar cash for BDC operations at that time.

So that was what we did with part of the $62 billion foreign reserves.

“Between 2009 and 2014, you remember in 2009 when we had the crisis, when it started with the Lehman Brothers collapse, America pumped a lot of money to stimulate its economy and as a result of that, money flowed into emerging markets including Nigeria.

“At that time again, Nigeria removed all forms of captive controls to encourage the flow of capital into Nigeria.

So what happened during that time was that for five straight years, we saw crude prices at above $105 per barrel on the average for five straight years.

“In that period, we also saw flow of capital into emerging markets including Nigeria.

So we should have at that time built our reserves but we did not, and these were some of the actions they took at the central bank that got us where we are today.”

and avoid a situation whereby you have too much money chasing too few goods, then you push up inflation.

“That is why we are trying to boost industrial capacity.

In Nigeria today, one major item that can boost industrial capacity is availability of FX and the only way you can ensure availability of FX is to take the action that we took to improve yields, since we have adjusted the currency so as to bring the foreign investors in.

“But we will see, going forward we will look at ways to allow some liquidity in the system in order to moderate interest rates and improve lending. Those are the kind of activities you will see going forward,” he said.

The TSA was Necessary On suggestion that the government should have a rethink on the Treasury Single Account (TSA) to reflate the economy, the CBN boss said the TSA was a programme that several governments in the past had attempted, but lacked the will to fully implement it.

He praised President Muhammadu Buhari for implementing the TSA to stem what he described as “colossal waste” of government funds.

He clarified: “It is for the government to give its agencies its money to put in the banks and those banks do not pay anything in interest to the government; at best if they paid may be at one or two per cent.

“But at the same time, when government wants to borrow money by selling treasury bills, government still goes to these banks and they pass this same liquidity to government at 12, 13 and 14 per cent. That is a colossal waste of resources on the part of the government.

“So when people say the TSA is sitting in the CBN and that is what is causing the crunch, it is not true because when the government wanted to withdraw the TSA, the CBN looked for its own way to release some funds into the system. For instance the CRR was reduced, so I do not agree that the TSA is a major issue here.”

Structural Adjustments Not Delayed Reacting to concerns over the delay by the federal government on making the necessary structural adjustments that might have warded off the recession in the country, Emefiele said it was unfair to blame the current economic situation on the delay in taking the necessary actions.

“It is also unfair to blame this government for not taking decisions on the necessary structural adjustments. And I will tell you this, normally when there is an adjustment worldwide those adjustments would be followed by structural reforms.

“In 1984, there was a government that said everybody should go to the farm, but you know crude prices went up and everyone abandoned the

Green Revolution, everybody abandoned this and that is why we are saying now, yes the adjustments are going on – the adjustment in currency market is going on – but there is also the need for us to ensure we follow through on structural reforms that will lead to the diversification of the economy.

“For instance, we have somebody who has decided to invest in a refinery, 650,00 barrel per day refinery; we are lucky that the same person has decided to invest in petrochemicals, we are lucky that this same person is investing in fertiliser, and these three projects alone are gulping not less than $11 billion.

“And I repeat, these three projects will take not less than 35 per cent of our import bill.

However, by 2018 when the projects start production, we will stop the importation of these products and we will be able to conserve our reserves because the demand for these will reduce,” he said.

On the issue of the peg on the price of petrol, which the governor was reminded that the government was again failing to address adequately and could lead to fuel queues that trigger higher prices and further impoverish Nigerians, he acknowledged that the pricing of petrol was something that the government and the citizens are very passionate about.

“We found out that because (oil) marketers could not access FX, they stopped importing petroleum products and NNPC was saddled with the responsibility of importing products, then of course, it became so bad that we began to see queues and it was embarrassing to our citizens.

“Rather than buy fuel at N86, people were buying fuel at different prices, some of them were buying at N150, some were buying at N200 in different parts of the country and people began to agitate, and that was why the government approved the increase of the pump price from N86 to N145, because the marketers said if it were possible for them to get FX at N280 to a dollar they would import,” he recalled.

Emefiele added that at the moment, oil marketers had reached an agreement with international oil companies and NNPC to buy FX at between N300 and N305 to the dollar, noting that the marketers’ margin in the pricing template of petrol was sufficient for any FX adjustment within the range agreed with marketers of petroleum products.

On the gap between the official FX rate and the parallel market rate, he said the monetary policy committee, which is in charge of exchange rate management, would not look at the rate at the parallel market as a basis to determine the exchange rate of the naira.

He also warned that it was illegal to patronise the parallel market, insisting it amounted to encouraging capital flight.

T H I S D AY MONDAY SEPTEMBER 19, 2016

11

12

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

NEWS

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

Salaries Worth N2.29bn Paid to Buhari, Osinbajo and Others The substantial cuts in the salaries of both President Muhammadu Buhari and Vice-President Professor Yemi Osinbajo earlier announced when the duo came to office last year may be nothing to write home about as both of them including cabinet ministers and other political appointees pocketed the sum of N2.295 billion as official salaries and

allowances in the last one year, Economic Confidential has gathered.

The development is coming at a time the federal government kick-started a national orientation campaign premised on the “Change Begins with me.”

In the report obtained by the economic intelligence magazine which showed the official

Dangote: I Need 38 Visas to Move Around Africa Billionaire businessman, Aliko Dangote, has advised African leaders to give incentives to investors and make intra-Africa travel easy.

He said this while revealing that despite the size of his group and investments on the continent, he needs 38 visas to travel across Africa.

The richest African said adequate steps must be taken to address the issue in order for the continent to have a blossoming economy.

“Our leaders must give incentives. For example, little things like visa issuance. You go to a country that is looking for investment, that particular country will give you a run around just to get a visa,” he said in an interview with CNBC Africa.

“You have to know somebody who is big in that country to call

somebody. They are giving you visas as if it is a favour.

“Somebody like me, despite the size of our group, I need 38 visas to move around Africa. Yes, I’ve heard that they are going to do the (African) passport, but you can see that there is still a little bit of resistance from other African leaders.

“Even countries like Rwanda and co, that say no visas for Africans, they are still having problems getting visas into other African countries, despite saying no need for visas for Africans coming in. They say, just come, we would give you on arrival.”

Dangote, according to the News Agency of Nigeria (NAN), said intra-Africa trade is still very much on the downside, stating that Nigeria imports flour from Europe, whereas, the flour was exported to Europe from Kenya and Ethiopia.

FG: Why We are Still Detaining Shiite Leader, El-Zakzaky The federal government has given a reason for the continued detention of the leader of the Islamic Movement of Nigeria (IMN) otherwise known as Shiite, Ibrahim El-Zakzaky.

Speaking during a press briefing at the UN secretariat in New York, the Minister of Foreign Affairs, Geoffrey Onyeama, said the Muhammadu Buhari administration is not willing to disrupt the process of inquiry initiated by the Kaduna State Government and has decided to allow the full process of the law prevail in the case.

The Kaduna State Government recently released the report of the panel its set up to investigate the clash which led to the massacre of over 300 members of the Shiite group by soldiers.

Onyeama while responding to a question by an online news portal, Premium Times, said the federal government would study the report.

“Government will study it, the Attorney General of Federation will look at the report and whatever measure needs to be taken will be taken,” he said.

Over 300 members of the IMN were killed between December 12 and 14 after the army accused them of blocking a major highway and plotting

to kill the Chief of Army Staff, Lt.General Tukur Buratai.

Hundreds of members of the sect including its leader, El-Zakzaky, and his wife, were subsequently arrested.

For several weeks, El-Zakzaky was prevented from seeing anyone including his doctors, lawyers or family members.

On April 5, the Islamic cleric’s lawyer who was finally allowed to see him, confirmed public rumours that the army had damaged El-Zakzaky’s eye.

“As a result of the brutal attack, El-Zakzaky lost his left eye while doctors are currently battling to save the right one,” his lawyer, Femi Falana, said.

Onyeama stated that the IMN leader was getting the required medical attention.

“He (El-Zakzaky) is getting all the medical attention he requires.

This I can say with certainty,” the minister said.

A Federal High Court in Abuja in July denied an application for bail by El-Zakzaky.

According to the court, ElZakzaky and his lawyers failed to seek the leave of the court to hear the application during the vacation period.

The Shiite massacre has been condemned by local and international groups including Amnesty International.

remunerations of the president, vice-president, cabinet ministers, Secretary to the Government of the Federation (SGF) and the Head of Service of the Federation among other chief executives, are in tandem with the approval of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).

The packages include: annual salaries, accommodation, vehicle maintenance/fuel, personal assistant, house maintenance, domestic staff, entertainment and utilities allowances.

Other allowances are: constituency allowance, hardship allowance, newspapers and monitoring allowances.

A critical examination of the report indicated that Mr. President has an annual basic salary of N3.51million, vice-president N3.03million, while ministers, SGF, Head of Service and chairmen of boards of statutory agencies

maintenance and estacode.

Meanwhile other appointees including ministers, advisers, permanent secretaries and INEC resident commissioners are entitled to 200 per cent of their annual basic salary for accommodation; 300 per cent for furniture; 75 per cent for Vehicle maintenance and fuel; 25 per cent for personal assistant; 75 per cent for domestic staff; 45 per cent for entertainment; 30 per cent for utilities; 15 per cent for newspapers, and 20 per cent for monitoring.

While president and vicepresident duty tours and estacode will be provided by government, other officers have fixed rates. The estacode allowance per day for minister, SGF, Head of Service and chairmen of board is $1,000 per night on foreign trip, member of constitutional bodies $900 per night, special adviser and speech writer $800 per night

have N2.02million respectively.

As for members of constitutional bodies, special advisers, speech writers, directors general, Accountant General of the Federation, permanent secretaries, CEOs of agencies and INEC Resident Electoral Commissioners each have an annual basic salary of N1.9 million.

The report showed that only the president and the vice-president in the executive arm of government enjoy the hardship allowances of 50 per cent each of their annual basic salaries; 250 per cent as constituency allowances and enjoy other perks to be provided (TBP) by government.

These benefits to be provided to the two leaders include, but not limited to the following: accommodation, furniture, domestic staff, personal assistants, utilities newspapers, vehicles, entertainment,

while permanent secretary, Director General and INEC Electoral Commissioner take $600 per night each on foreign trips.

Further checks revealed that an average Nigerian worker with a minimum wage of N18,000 a month will have to work for more than four years before earning the utility allowance for ministers. Unless the remuneration package is reviewed downward for the political appointees and upward for the civil servants the executives will continue to enjoy the current salaries and allowances.

RMAFC determines and fixes the remuneration packages of public and political office holders, while the National Salaries, Wages and Income Commission fixes the salaries and allowances of civil servants in Nigeria.

OFFICIAL REMUNERATION PACKAGES FOR FEDERAL EXECUTIVE OFFICERS IN NIGERIA FEDERAL EXECUTIVE: OFFICIAL SALARY AND ALLOWANCES OF FEDERAL EXECUTIVE OFFICERS OF FEDERAL REPUBLIC OF NIGERIA FEDERAL EXECUTIVE Annual Basic Vehicle Personal Salary Maintenance 75% 01 President

House

Domestic Entertain Utilities Staff ment

25%

75%

45%

30%

3,514,705. 00

TBP

TBP

NA

TBP

TBP

TBP

02 Vice President

3,031,572 50

TBP

TBP

NA

TBP

TBP

TBP

03 Minister/SGF/ HOS/Chair

2,026,400. 00

1,519,800.00

1,957, 580. 00

1,468,185.00

1,942,875. 00

1,457, 156 .25

1,925,865.00

1,444,398 .75

1,925,865. 00

1,444,398 .75

1,519, 800.

00 1,468, 185.

00 1,457,1 56. 25 1,444, 398.

75 1,444, 398.

75

911,88 0.00 880, 91 1.00 874,29 3.75 866,6 3 9.25 866,63 9.25

607,9 20.00 587,2 74 .00 582,8 62 .50 577,7 59 .50 577,7 59 .50

04 05 06 07

Constitutional Body Member Special Advisers, Spch writers Perm Sec/ DG, AGFs/ Chief Exec. Of MDAs INEC Resident Electoral Comm

506,600.

00 489,395.

00 485,7 18.

75 481,466.

25 481,4 66.

25

NA NA NA NA NA

Consti Hardship uency Allowance Allowance 250%

50%

8,786,7 62.50 7,578,9 31.25

1,757,3 52.50 1,515,7 86.25

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Annual

15% TBP TBP 303,96 0.00 293,6 3 7.00 291,4 3 1.25 288,87 9.75 288,87 9.75

Monthly Emolument

20% 14,058,8 20.00 12,126,2 NA 90.00 405,2 7,801, 64 80.0 0 391,5 7,536, 68 16.0 0 3.00 7,091, 49 NA 3.75 385,1 7,414, 58 73.00 0.25 385,1 7,414, 73.00 580.25 NA

1,171,5 68.33 1,010, 524.17 650,1 36.67 628,05 6.92 590,9 57.81 617,8 81.69 617,8 81.69

Table by the Economic Confidential www.economicconfidential.com

NON-REGULAR ALLOWANCES FOR OFFICERS OF FEDERAL EXECUTIVE ARM FEDERAL EXECUTIVE

Annual Basic Salary

Vehicle Maintenance

Personal Assistant

House Maintenance

Domestic Staff

Entertainment

200%

300%

10%

300%

400%

Utilities

Constiuency Allowance

01 President

3,514,705.00

TBP

TBP

351,470.50

10,544,115.00

14,058,820.00

TBP

TBP

02 Vice President

3,031,572.50

TBP

TBP

303,157.25

9,094,717.50

12,126,290.00

TBP

TBP

03 Minister/SGF/HOS/Chairmen

2,026,400.00

4,052,800.00

6,079,200.00

202,640.00

6,079,200.00

8,105,600.00

N35,000.00

$1,000

04 Member of constitutional Bodies

1,957,580.00

3,915,160.00

5,872,740.00

195,758.00

5,872,740.00

7,830,320.00

N35,000.00

$900

05 Special Adviser, Speech writers

1,942,875.00

3,885,750.00

5,828,625.00

194,287.50

5,828,625.00

7,771,500.00

N25,000.00

$800

Sec/ /CEO Govt 06 DG,AGFs/Perm Parastatals, Coy, Agency/ Resident Electoral 07 INEC Commissioner

1,925,865.00

3,851,730.00

5,777,595.00

192,586.50

5,777,595.00

7,703,460.00

N20,000.00

$600

1,925,865.00

3,851,730.00

5,777,595.00

192,586.50

5,777,595.00

7,703,460.00

N20,000.00

$600

Table by the Economic Confidential www.economicconfidential.com

Supreme Court Judgment: Tension in Kogi as Police Build up Security Yekini Jimoh in Lokoja As the people of Kogi State await the Supreme Court judgment tomorrow over the governorship election, the state police command has beefed up security to avoid any crisis in the state.

Security agencies comprising the Nigeria Police, Department State Services (DSS), Nigeria Security and Civil Defence Corps (NSCDC) and Nigeria Army have been mobilised to ensure adequate security

ahead of the judgment.

Political stakeholders from all the parties involved in the suit, including the state Governor, Alhaji Yahaya Bello, are presently in Abuja.

Meanwhile, the state governor has said he is sure of victory tomorrow.

The governor who spoke through his Special Adviser on Media and Strategy, Mallam Abdulmalik Abdulkareem, said he was not disturbed, adding that he would triumph when the apex court delivers

its judgment tomorrow.

“We are not shaken; we know that the rule of law will take its course, and God willing, we are set to make legal record that will become a precedent. The Nigerian legal system is developing and we are happy that our case is adding impetus to the Nigerian judiciary,” he said.

According to him, the governor’s camp was not in any way jittery over the judgment as no different issue had been raised by the

appellants.

Also speaking, the immediate past Governor of the state, Captain Idris Wada, said he had always had belief in the judiciary, particularly the Supreme Court.

Speaking through his Special Adviser on Media and Strategy, Mr. Jacob Edi, the ex-governor said: “We expect to win the case; we have always had confidence in the judiciary and we kept

Cont’d on Pg 60

T H I S D AY MONDAY SEPTEMBER 19, 2016

13

14

T H I S D AY • THURSDAY SEPTEMBER 19, 2016

COMMENT

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

LESSONS FROM THE WILD

H

Adams Oshiomole’s administration is committed to the people, writes John Mayaki

ave we been here before? I know it feels as if virtual reality – politics, election, campaigns and governance – good or bad among others, constitute a change with precedent– negative or positive. But we’ve actually been through an extra-ordinary rapid transition like this before in history, both as a nation and in Edo State – a transition we can learn a lot from.

We’ve heard, “No Vacancy” in Osadebey Avenue – this was when Chief Tony Anenih had teeth to bite. We also overheard, “when a child fails exams, he or she must be allowed to repeat”. This was the sermon according to St. Gabriel, the Esama of Benin on why his son, Chief Lucky Igbinedion should have a second tenure.

In 1999 and 2003, there were transitions – so also in 2007. We had another during 2012 and just around the corner, we are about to experience another.

Although in those days, there are certain awkward orders, the ones with no right of reply – in fact, a cough could earn you suspension or expulsion from the party, when these ‘revered orders’ were handed down from ‘above’ – but all these are vanishing in recent times – the ones such as, “Anenih say!” “Leader say!” among other threatening ‘commandments’ from the “leader’s bedroom”.

Campaign of calumny – Oh yes! This is the season – not new. What about intimidation – “We are in power!” “We have federal might!”

“We control INEC and security apparatus!” All these you hear when the umbrella party resided in Abuja – this time around, to your tents O Israel – INEC is his own man.

Little wonder, we read headlines such as, “I made Oshiomhole Governor - Ize-Iyamu”. Just the other day, Chief Tom Ikimi said, “Oshiomhole knelt down to beg me to become Governor….” and all those trash – we’ve been here before! The man who would win the election must just win, irrespective of the drumbeats from Ikimi, Ize-Iyamu, Dan Orbih and their co-travellers.

There are lessons we can draw from the period 2007 -2016, when Edo State made series of great leaps forward, propelled by Comrade Adams Aliyu Oshiomhole with a clear-headed-visionary Godwin Obaseki in the boardroom - who reshaped governance, politics, mentoring, and leadership.

Oshiomhole, who provided the trigger for our renaissance; our age of political discovery in Edo State, democratised leadership and opened up governance but did not only demystify it; he made the people to embrace popular participation, and mass movement, just as incentives to be literate, which include social infrastructure, among others.

OSHIOMHOLE DEMOCRATISED LEADERSHIP AND OPENED UP GOVERNANCE BUT DID NOT ONLY DEMYSTIFY IT; HE MADE THE PEOPLE TO EMBRACE POPULAR PARTICIPATION

How we, the citizens guide these achievements from eroding remains yet-to-be seen because events unfolding from the opposition typifies one – a party and its chieftains who kept running from pillar to post, just to escape judgment for the avalanche of their past by employing the instrument of blackmail and outlandish propaganda to confuse the electorate.

Now, unlike then, Oshiomhole has shown that good governance is possible, and therefore, amplifying the voices of those who felt they have been injured in the upheaval. Then unlike now, politicians failed to keep up with rapid change, and popular trust deeply eroded.

However, now, unlike then, this is the best moment in history to be alive – human health care facilities, education and literacy infrastructure, quadrupled business friendly environment resulting to massive industrialisation, road construction, employment, fiscal responsibility, transparency among others which are the flourishing elements of good governance.

Then, unlike now, when inequality grew and the masses felt worse off - they held us, not only by the fist but at the jugular and castrated our collective patrimony – socio-economic life being fundamentally dislocated, as sizeable majority of the electorate no longer find them needed to drive the governance process as against the immense improvements we are experiencing in terms of choices and accelerating innovations which distributed wealth across a larger spectrum across the state.

Now, I am sure the Peoples Democratic Party felt-left-behind – politically, even more so, economically, they resorted to sermons of change-the-change.

Trust, the All Progressives Congress is never moved by the PDP crawler’s activities – we’ve been here before. The party is focusing on the people; the vast majority with constant innovations of how to better their lots than handful-ancient-fellows who refuse to quit the stage.

Oshiomhole knows that more risk taking is required when things change more rapidly, both for workers and businesses. Government’s duty is to strengthen the safety nets and infrastructure so that individuals and companies can be as daring – in terms of learning, adapting and investing in themselves, as they need to be.

In finishing times like this – Oshiomholexit – we are not carried away. We are more, not less, engaged with vast majority of the people because the threats posed by the achievements of this administration by yester-years men, will not be doused by withdrawing the owners – the people. www.johnmayaki.com

THE ROAD TO VENEZUELA

W

hen I ventilated the idea of doing an article with the above title to draw the attention of the country to the danger lurking ahead of us and how if we are not careful we would be headed to the well-advertised Venezuela situation whose most prominent aspect is citizens queuing on long lines, sometimes overnight for some basic consumer items, one of the members of a WhatsApp group to which I belong raised objections to note that I should instead write on how to avoid the Venezuela situation. The point about this article is not to display masochistic tendency of wishing that the situation in Nigeria becomes like Venezuela but to draw urgent attention to the fact that from the trend of economic development that it is quite discernible that the most ugly and often advertised aspect of shortages of essential consumer goods is not farfetched in Nigeria. It happened in the past in the early 80s when, following the precipitous and massive crash in the price of oil, the country found itself short of badly needed foreign exchange to continue with importation to assuage its appetite for the unbridled consumption of foreign products and services. And therefore product rationing became imperative and for some of us we had to leverage on the access we had with the store managers to obtain some of these basic items without having to go through the excruciating and humiliating stress of queuing to obtain them.

But the similarity of the Nigerian situation to the Venezuelan one goes beyond the inglorious situation of unjustifiable scarcity of basic consumer items to the fact that like Nigeria, Venezuela is an oil exporting country which has very little local production capacity but also massively imports its requirements from overseas therefore denying the country the opportunity to grow local capacity, create employment that is now at a premium and overall facilitate the attainment of the rapid development of the country. Venezuela is reputed to have the largest proven reserve of fossil oil in the world. As the oil market nosedived an ability to import was abridged, the country resorted to all manner of capital rationing with attempt

Boniface Chizea argues the need to implement the 2016 budget

made to peg the rate of exchange. Again like the Nigeria situation a vibrant parallel (black?) market developed and the differential in rate between the official and the parallel market rate was, wait for it 10 times! So we are lucky in Nigeria that we still talk of the differential in the Nigeria situation in percentage terms and the rate of inflation in Venezuela both on the occasion in the early 80s and now went beyond 100 per cent. Inflation rate of the order of 17 per cent in Nigeria is as biting, talk more of inflation of the order of 100 per cent.

It must be difficult to operate under such situation!

With the situation in Nigeria as it is today there is hardly any aspect of our life that has not witnessed price increase and in reality these increases are across the board.

But the point of this article is to rally us around the consensus that we must all work to ensure that the Venezuela situation does not happen to us because the size of our problems is at least four times that of Venezuela. The population of Venezuela is currently around 35 million people while in Nigeria the population is around 180 million.

The Nigeria situation becomes worrisome because this recession did not creep on us like a thief at night. For most of us who engage in the public space of trading in ideas and have been privileged enough to have varied platforms to air our views, we warned continuously that we have to adopt expansionary fiscal posture to boost activities with a view to avoiding the looming contraction which has now happened upon us and so when Budget 2016 was under consideration we seized each and every opportunity to canvass for an expansionary budget and when an unprecedented budget of over N6 trillion was announced with a deficit of over N2 trillion we celebrated that fact but since then what has happened? Even in the last quarter of the budget year we are still discussing approval to borrow from where which should have been all concluded by now. So the warning we wish to sound now is that if we do not buckle down to brass tacks and get down to action the Venezuela example would be a child’s play particularly as there is remote possibility of oil prices increasing up to 100 dollars per barrel which has often been the saving grace when we will again forget all and

resort to business as usual until the next round of oil price crash. America discovery of shale oil is most certainly a game changer as the rigs that have gone dormant would be rapidly activated as prices reach a certain threshold and beyond when it makes economic sense to begin to explore other marginal field. So rebound of oil price will no longer come to the rescue in the foreseeable future!

What I intend to do going forward is to highlight some of the practical things we need to do and in the process to eschew generalisations such as ‘we would get ourselves out of recession by diversifying the economy and embracing solid minerals and agriculture.’ I think that the first thing is that we must make efforts to implement Budget 2016 as approved including executing the borrowing plans included in the budget. It is not adequate to regale us with the claim that we have made capital releases of N400 billion compared with budget estimate in this respect of N1.8 trillion which represented 30 per cent of the budget in the last quarter of the fiscal year.

We must hasten action with growing the tax revenue as it is a known fact that Nigeria has one of the lowest tax to GDP ratio at 7.8 amongst our peer countries and even relative to advanced countries of the world. We must however aim to do so by broadening the tax net to include those in the informal sector who are currently not paying any taxes and every effort must be made to make our tax administration progressive by ensuring that those better able to pay tax do so. One recalls that the immediate past administration outlined some luxury tax items it was going to pursue including tax on property of certain threshold value in the Federal Capital Territory.

But the tendency is to disconnect from the activities of the immediately past administration so nobody ever remembers all of that anymore and it is not only in this connection but also most prominently in agriculture where the immediate past administration spearheaded some technological driven innovation such as the electronic wallet.

Since the commencement of this administration with the inauguration of its road map for agriculture there has been no mention of such laudable innovative achievements which for us to make

desired progress we should have leveraged on.

If we implement the social programmes in Budget 2016 it would most certainly give a boost to economic activities. We included N500 billion in the budget to create graduate teacher employment, provide meal a day at school, and undertake conditional cash transfers to a select number of our jobless compatriots. It was just the other day that one heard the Presidential assistant in this respect Mariam Uwais making some comments to highlight the commencement of the social programme included in the budget and even then it is yet not clear if we are not only paying lip service.

We should ask ourselves some soul searching questions regarding the effectiveness of the Treasury Single Account in our present predicament of the pressing need to pump money into the system.

To my mind it is anomalous to sanitise such a humongous sum of money in excess of N3 trillion at the Central Bank creating illiquidity amongst the banks and in the process undermining their ability to create badly needed credit. We must prioritise to my mind growing this economy over and above the imperatives to fight corruption which remains a journey and can never be a destination.

I doubt if we are in a position to end the insurrection at the Niger Delta by waging a war. The lessons of experience would recommend that we embrace dialogue. But ending the insurrection at the Niger Delta is a veritable strategy for impacting on the recession particularly if we factor into consideration the extent of loss in revenue which this insurrection has caused the country.

We must devise a strategy to pay workers their salaries. It has been reported that about 28 states in the country are delinquent in this respect. What is even more worrisome is that some oil producing states that enjoy addition revenue flow from the derivation allocation are also caught in this trap.

In this respect we must clear the back log of payments due to workers and pensioners and pay off all public sector debtors. I have argued that we must find the money to make this payment if we are interested at jump starting the termination of the ravaging recession even if we have to resort to ways and means financing.

Dr. Chizea is a management consultant

15

T H I S D AY ˾ THURSDAY SEPTEMBER 19, 2016

EDITORIAL THE FAILING AIRLINE INDUSTRY

T

Government should come to the aid of the domestic airlines

o say that the airline business is going through a distressing period in our country today is to state the obvious. But to the extent that critical stakeholders in the industry know the consequences of cessation of operations by domestic airlines, it is important that there be a quick intervention from the relevant authorities to prevent the total collapse of the vital sector.

As things stand today, Nigerians do not have good alternatives to air travel with most of the roads in dilapidated conditions aside other challenges associated with land travels in the country. Besides, no other means of transport can be as fast as travelling by air, which is perhaps the only choice for top government officials, businessmen and women whose tight schedule of duty cannot afford long hours of road travels.

However, there are now palpable fears that the downturn in the nation’s economy may force more airlines out of business. First, it was the Aero Contractors which stopped scheduled services a fortnight ago. The First Nation OVER 40 PER CENT OF Airways later anOPERATIONAL COST OF nounced it would AN AIRLINE IS SPENT ON suspend services until AVIATION FUEL. TODAY September 15 when its THAT PRODUCT SELLS AT aircraft would return N220 PER LITRE BECAUSE from maintenance IT IS IMPORTED. A YEAR checks overseas. As AGO, IT WAS SELLING FOR air travellers were HALF THAT COST lamenting about low capacity and limited choices, Nigeria’s biggest carrier, Arik Air stopped operation for16 hours last Tuesday. Although it has since resumed operations, these incidents, taken together, are augury of what is befalling the industry. Therefore, if the present economic downturn continues, there may not be domestic travel anymore as the airlines would have gone under.

The major problem is easy to understand. Domestic carriers are threatened by the low value of the naira.

Everything about the aircraft is imported - from the

Letters to the Editor

T

equipment itself to maintenance, technical personnel, spare parts, training and others. Most Nigerian airlines have expatriate personnel that they pay in dollars. So in a situation where over N400 is exchanging for $1, it is difficult for Nigerian airlines that sell tickets in naira to raise enough funds to maintain their aircraft and pay for the services in dollars. Besides, over 40 per cent of operational cost of an airline is spent on aviation fuel. Today that product sells at N220 per litre because it is imported. A year ago, it was selling for half that cost.

M 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 NATIONí 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: rst name.surname@thisdaylive.com

eanwhile, even though the cost of operation is rising, airlines have not increased fares to reflect the change because many Nigerians have low disposable income, which continues to deplete as recession bites harder.

But there are actions government can take to rejuvenate the airlines and these include the local refining of aviation fuel, which will drastically bring down the price of the product. Because the product is imported currently the price is determined by the exchange rate. But if government dedicates, for example, Warri refinery, which has the facilities to refine aviation fuel, Nigerian airlines would spend less on that commodity.

Government should also review the charges paid by airlines. Airlines pay five per cent of their ticket sales to the Nigeria Civil Aviation Authority (NCAA), they pay for passenger service charge, landing and parking to the Federal Airports Authority of Nigeria (FAAN) and they pay enroute and navigational charges to the Nigeria Airspace Management Agency (NAMA).

Aviation is a catalyst to economic development and that explains why many governments support their airlines through subsidy, waivers, etc. The Nigerian government does not give any incentive to domestic airlines. Rather, they pay comparatively exorbitant charges, even when successful airlines all over the world are known to make marginal profits. Although running airlines is a private business, because of the role they play in the economy, government cannot continue to look the other way while they are increasingly distressed.

TO OUR READERS Letters in response to speci c 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 (950≠ 1000 words). They should be sent to opinion@thisdaylive.com along with the email address and phone numbers of the writer.

FOSTERING INTERSTATE SOCIO-ECONOMIC UNION IN NIGERIA

he bedrock of a strategy that can productively engage the world’s population in assuming responsibility for its collective destiny must be the consciousness of the oneness of humankind. This can come in the form of the adversarial structure of civil government or in a non-antagonistic competitive spirit for economic prosperity, being the mainspring of human interaction.

Currently, Israel continues to help the United States deal with traditional security threats. The two countries share intelligence on terrorism, nuclear proliferation as well as Middle East politics. Israel’s military experiences have shaped the United States’ approach to counterterrorism and homeland security. The two governments work together to develop sophisticated military technology.

The U.S.-Israeli alliance has paved way for the two countries to cooperate on far more than just traditional security issues. So today, Israeli civilian technological innovations are helping the United States maintain its economic competitiveness, promote sustainable development and address a range of non-military security challenges. So, the bilateral relationship is based on steadily increasing security and economic interests and not just shared values.

In our clime, building on seemingly inter-state bilateral relationship for economic prosperity in some key areas is very key and would engender an all-round transformation of the country, reduce incidence of migration basically because of the perceived prosperity of one state to the other.

In Nigeria, there is no single state that is not blessed in terms of nature’s gifts. This makes all states in the country indispensable to the

other, thereby underscoring the need for social and economic integration the more.

Consequently, it is vital that each state taps into the aspect of maximising its potential and nature’s gift for economic upturn to fill the vacuum left by others. For example, some states are blessed with large expanse of land and are agriculturally viable, some gifted in oil and commerce while others are aquatically blessed. Some others are rich in human resources.

Presently, Lagos State is leveraging more on the prospects of interstate bilateral relationship with the aim of expanding the prosperity of the state while also boosting the revenue of other states. Lagos is Nigeria’s economic focal point, generating a significant portion of the country’s GDP. Most commercial and financial businesses are carried out in the central business district situated in the state. Lagos is where most of the country’s commercial banks, financial institutions, and major corporations are headquartered.

Currently, in Nigeria, there are renewed calls for government to diversify the economy. Indeed, many are clamouring for the resuscitation of our ailing agricultural sector as well as other non-oil sectors.

Recently, Minister of Finance, Mrs. Kemi Adeosun charged state governments to explore available sources of revenue generation in their states to avoid over dependence on the federal government.

Thus, in the midst of its perceived prosperity, Lagos is still inventing new sources of wealth. Despite recent discovery of oil in the state, the state government is still not relenting in its drive to make the state a haven for investors.

Presently, three of such moves are noticeable. First is partnership

with the Kebbi State Government in commodity value chain production like rice, wheat, groundnut, sorghum and livestock. Second is partnership with Niger State Government for the development of agricultural commodity value chain. Third is the acquisition of lands in some states for agricultural purposes.

Economic growth and development, no doubt, accelerates technological innovation and human capital development. But a growing number of studies and research works have proven that geographical proximity, cultural diversity, political affiliations among other factors also play key roles in economic growth and infrastructural transformation.

When considering the gains of proximity with Lagos State, no state in the country stands a better chance of tapping into the prosperity of Lagos than Ogun State. Regrettably, Ogun State, over the years, is yet to adequately explore the benefits of its proximity to the Centre of Excellence, share from its cultural dexterity and language and above all, maximise the gains of the APC’s broom revolution as a way of making the entire process of economic integration seamlessly achievable. Ogun State occupies a unique position in the economic and geographical map of the country with its GDP contribution to the nation’s economy put at US $10,470 making it the 9th highest contributor of Nigeria’s GDP. Specifically, the neighbouring towns to Lagos from Berger end of the metropolis, Sango and its environs along Lagos-Old-Abeokuta road often referred to as ‘New Lagos’ because of their proximity to Lagos are worst hit in terms of underdevelopment.

Ayo Afuwape, Ministry of Information & Strategy, Alausa, Lagos

16

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

POLITICS

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

T H E M O N D AY D I S C O U R S E

Before Ondo APC Destroys Itself

As the Appeal Panel set up to review complaints in the September 3 gubernatorial Primary of the All Progressives Congress in Ondo State is set to submit its report, the fear that doomsday awaits the party unless the crisis is resolved in earnest, pervades the atmosphere, writes James Sowole

W

ith the initial conceding of defeat by the anointed aspirant in the Saturday September 3, 2016 gubernatorial primary election of the All Progressives Congress (APC) of Ondo State, by Dr. Olusegun Abraham, everyone had thought the stage was already set for the November 26 battle between the winner of the exercise, Mr. Rotimi Akeredolu (SAN) and the candidate of the Peoples Democratic Party (PDP), Mr. Eyitayo Jegede, also a Senior Advocate of Nigeria (SAN). A majority of observers had already tagged the election: ‘The Battle of SANs’ Those who gave into that mindset by Abraham, who scored 635 as against the 669 votes polled

by Akeredolu in a keenly contested election that involved 24 aspirants, may not be totally wrong because the winner (Akeredolu) was the only top contender that openly confronted and condemned one of the national leaders of the APC, Senator Bola Ahmed Tinubu, for allegedly endorsing the first runner up (Abraham) few weeks to the primary election.

During the controversies that ensued preparatory to the primary election and which led to the postponement of the exercise twice, Akeredolu vehemently opposed Tinubu’s action on pages of major national newspapers and the airwaves were awash daily with messages from him, condemning any attempt to foist a candidate on the party in Ondo State.

The senior advocate, who in one of the interviews boasted that he would win the primary election, declared that Tinubu would be shocked by the time he hears the results of the election. Truly, all that Akeredolu needed to bring his prediction to reality was the 34 votes that he scored above his closest rival.

Series of reports that preceded the voting proper pointed to the fact that top aspirants were desperate to outwit one another, using all manners of tactics to attract delegates. No doubt money was believed to have exchanged hands in the horse-trading that followed and all the major contenders were involved in this practice. But in attracting the delegates, it was one thing to get the money to be distributed and another thing was to even get the delegates to buy into their candidacy.

In order not to be caught napping, top contenders were alleged to have ‘kidnapped’ delegates and lodged them in hotels within and outside the state for days to keep them away from their opponents. Still not sure of their commitment, aspirants were further alleged to have made delegates to swear to an oath before they were given money. All these were pre- voting events, which no aspirant could own up to and which the electoral committee was not concerned about.

Thus, to everybody in the main hall of the Ondo State International Event Centre, The Dome and those that watched the voting proper live on Nigeria Television Authority (NTA) and TV Continental, the exercise supervised by a team led by the Jigawa State Governor, Alhaji Badaru Abubakar, could conveniently pass the transparency test. This reason may have been responsible for the initial action of the first runner up, Abraham, who on Sunday conceded defeat and commended the leader of the electoral team for a job well done.

“My special regards and admiration for Alhaji Badaru Abubakar, the Governor of Jigawa state and his team, for their sterling quality and integrity in conducting the APC governorship primary in Ondo state,” he said.

Continuing, he added: “I also thank my teeming supporters for showing maximum solidarity throughout the campaign till now.

I am not unaware of the pain you feel right now – with so much fervor – you all took our message of industrialising Ondo State to every nook and cranny. I pray that our God will bring the much-needed prosperity we seek to Ondo state in earnest.

“I will not turn my back to my loving people of Ondo. I will continue to contribute my quota to the development of our state in any way God directs. The APC is a party consistently determined to bring prosperity and good

Akeredolu...the man who shocked his ‘enemies’

governance to the people of Nigeria, and I will ever remain loyal to our party and its ideals and principles,”Abraham stated.

But the bubble burst when the APC Central

To think that all the aspirants had with them, a list of the delegates ahead of the exercise showed a degree of transparency that is alien to the APC and its affiliates in the past. When placed sideby-side with the process that produced Governor Akinwunmi Ambode of Lagos in 2015, then, the Ondo APC would be commended for a good job.

Not one candidate knew who the delegates were in Lagos in 2015 and yet, they all led to the exercise as if they had some magic to perform. What with the result? It was a sweeping landslide

Senatorial Chairman, Mr. Adegbooyega Adedipe announced his resignation from his position and later became one of the three signatories in a petition alleging irregularities in the list of delegates from Ondo East and Ondo West Local Governments. Other signatories which apparently revealed the position Chief Olusola Oke, who came third with 583 votes in the primary are the Chairman of the APC in Ondo East, Mr. Akintunde Samuel and Mr. Adeola Ademulegun for Ondo West.

In the petition, the aggrieved APC Leaders called for outright cancellation of the Saturday primaries to pave the way for fresh exercise that would reflect true reality of the election.

“A strange delegate list was introduced on the night of the election after everybody has gone to sleep only for us to wake up in the morning of the election to see a massively corrupted delegate list. Names of 47 per cent of the delegates in Ondo East were either deleted or substituted with people, who are unknown to the party as executive members. Some of the injected names are not even aware of the development and so did not come for the primary election.

“We wrote a petition to the primary Election Committee Chairman on the morning of the election and it reiterated that only people that had been voting in previous primaries would be allowed to vote with a promise to stand down the voting process for Ondo East and West Local Government Areas. We were shocked that the committee never honoured the pledge.

“In all, a total number of 64 names were injected into the delegate list. The names were unknown to the party. For instance, somebody who never contested any election and some even unknown to the party suddenly became ward chairmen in wards four, six, two and seven of Ondo East Local Government. Our total valid delegates are 135 out of which 64 were disenfranchised, meaning 47 of the delegates

on the unlawful list were illicit voters.

“The absence of many legitimate voters paved the way for ‘See and Buy’ voters that were eventually used to further corrupt the process. Many voters were recruited from the road side including okada riders, bread-sellers, street hawkers and others, who were not party members but just loitering around the venue of the primary election.”

The aggrieved APC members maintained that they were not against the beneficiary of the alleged fraud, but that of the fraudulent process that produced manipulated result. They urged the Appeal Committee to order the use of the same premises for accreditation as the voting centre during the re-run primaries to avoid the repeat of the situation, where ‘compromised’ security agents loaded non-delegates to voting centre and gave them delegate tags.”

The allegation of the APC leaders was supported by a woman and two men, who on TV Continental confessed that they were not delegates but given money to vote during the primary.

Thus, towing the path of Oke, Abraham, who had earlier conceded defeat made a recant and rejected the results of the election in a statement signed by the Director-General of his campaign organisation, Olu Adegbooro. He alleged that the delegates list for the election was doctored and injected with non-executive members of the party.

Abraham specifically pointed out that the process leading to the primary election was manipulated and compromised, saying “the outcome of the election is “unacceptable”, considering the plethora of staggering facts of anomalies that have since emerged to the demerit of the exercise”.

The statement further read in part: “It is no longer news that as a true democrat, imbued with CONT’D ON NEXT PAGE

17

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

POLITICS/ THE MONDAY DISCOURSE E K I T I G R A Z I N G L A W : T H E W AY T O G O

Governor Badaru (middle) explaining that the exercise was free and fair

the best spirit of sportsmanship, I congratulated Mr. Rotimi Akeredolu, who purportedly emerged as the candidate of the All Progressives Congress in the September 3rd gubernatorial primary election in Ondo State in the face of palpable disbelief and surprise on the outcome of the primary election by my numerous supporters.

“The news, however, is that sordid and staggering facts have since emerged on how the process leading to the primary election was manipulated and compromised. It is now beyond doubt that the delegate list used on the day of the primary election was doctored and strangely injected with a mind-blowing number of delegates that are neither executive members of our party nor statutory delegates.

To say the least, the manipulation of the delegate list, highly skewed accreditation process and the entire processes leading to the conduct of the primary election has cast the darkest stain on the result of the primary election held on the 3rd September, 2016.

“Against this background, coupled with the change and integrity that our party preaches and practices and having widely consulted with my numerous supporters, I have reached the hour of decision to fall back on the internal mechanism of our great party to seek redress so that the end of justice will be served and more importantly, our democracy may endure.

“To this end, the outcome of the September 3rd APC governorship primaries in Ondo State is unacceptable and I hereby appeal against same. The allegations that have sadly pelted the supposedly free and fair Saturday exercise, where 24 aspirants battled to nick the party’s ticket, include but not limited to delegates list tampering, fake delegates incursion, disenfranchising of rightful delegates and smuggling of illegal ballot papers into ballot count,” he said Similarly, the lawmaker representing Ondo North Senatorial District, Senator Ajayi Boroffice, called for the cancellation of the results of the exercise. Boroffice, who polled 471 votes and came fourth in the election, said he was informed that those who were not delegates voted in the election.

He expressed this position in his Oka country home during a reception rally organised for him by the lawmakers representing Akoko South West/South East federal constituency, Babatunde Kolawole, who also said the election was characterised with malpractices.

He said, “Before the conclusion of the election, I kept hearing the rumour that the delegate list had been infiltrated and doctored. That there were even some people, who were not accredited, and who were not even delegates but were given tags and induced to come and vote and this has been substantiated. This is unfortunate. I am in support of total cancellation of the election.

The election should be cancelled while a fresh election should hold,” Borrofice said.

The senator, however, pledged to remain in the party by working towards ensuring that the party wins the governorship election, even if the result of the election is not cancelled. “I am a loyal party man. I had the opportunity to leave the party in 2012 but I didn’t. I was one of the three people that remained then, among the aspirants. I am not in this party to be a governor. I am in this progressive party

to help build Nigeria and if I don’t become governor, another person will be governor, as long as the process is free, fair and credible,” Boroffice stated.

Two other aspirants, Senator Tayo Alasoadura of Ondo Central Senatorial District and a legal practitioner, Dr. Tunji Abayomi had congratulated Akeredolu for winning the primary election of the party.

Alasooadura said the exercise that produced the party’s candidate was credible and transparent urging other aspirants to support him so that the party can go on to win the November 26 governorship poll and send the PDP packing from the Government House.

Abayomi, who faulted the petitions written against the return of Akeredolu in an interview, said the alleged error on the delegates’ list used for the primary had nothing to do with the victory of the winner of the election. The aspirant insisted that the primary was free, fair and transparent, adding that Akeredolu deserved the victory. He noted that if there was a problem with the delegates’ list, it must been caused by the party at the state level.

“If there is a problem with the delegates’ list, it has absolutely nothing to do with the victory of Akeredolu. It is possible that there is a problem with the list but that problem is unintended. It is not by Akeredolu. But if it is intended, it will be the party itself in Ondo State because the party structure in Ondo State was not favourably disposed to Akeredolu and they already have their own candidate.

My view is that providence appeared to have worked against the intention of the party in Ondo State because they intended to favour a certain aspirant,” he said.

Anxiety has however gripped the party

Therefore, the foul-crying about the process that just produced Akeredolu is misplaced, selfish, undemocratic and completely unprogressive.

It shows the tendency of a defective leadership, which throws out everything each time a particular concern does not go its way. This is where the intervention of the collective is crucial before the greed of a few lands everyone in bigger crisis. Time is not on its side and party leadership must step in intelligently to stem the looming disaster

stakeholders as the Appeal Panel set up to look into various complaints emanating from the exercise and headed by Mrs. Helen Benbager from Benue State is set to submit its report.

There were even allegations that some leaders of the party were already working to ensure that the report favoured a particular interest.

Though the committee was yet to make its report public, membership of the party were already divided into two broad sections and had been circulating rumour to favour their sides respectively.

While a section of the party members were already circulating that the return of Akeredolu had been affirmed, the other said the panel had recommended that the entire results should not be jettisoned but that rerun election would hold for delegates in Ondo East and Ondo West since complaints were mainly on the delegates from the two local governments.

Speaking, the Chairman of the Elders Forum of the party, Senator Olorunnimbe Farukanmi said it was a pity that the reported allegations arose after some aspirants had congratulated Akeredolu describing it as very saddening.

Farukanmi, who said it had been established that the two sides can never be pleased at the same time when the report of the panel is released, said leadership of the party should sit back and find an amicable resolution to the matter so that the party can win the gubernatorial election, which is the ultimate.

“Wherever it goes, the APC is in crisis unless the two sides agree to work together. The stakeholders must find a way to settle the matter because the election is very critical,” he said.

Another chieftain of the party, who did not want to be mentioned, said the party was already doomed in the state if the results of the primary were tampered with. He said the time was no longer there for the party to conduct another primary election.

The chieftain said if the APC, which the people were already looking to for a rescue from the years of misrule in the state is still grappling with issues of primary almost three weeks after the PDP candidate had been meeting various interests groups for votes.

“It is unfortunate that the party has defeated itself. Unless we resolve this matter in time, all of us would be losers because the PDP is already in the field to take advantage of the situation,” he warned.

Abayomi, who also contested for the ticket of the party said if the results of the primary was annulled, it would have a negative effect on the party and the people because it would confer unnecessary uncertainty on the process. He said the decision would lead to disappointment and general apathy on the voter, that were already yearning for positive change.

“If the primary is cancelled and another one conducted, the results of the new exercise would not be acceptable to the losers,” he said.

Publicity Secretary of the party in the state, Omo’Oba Abayomi Adesanya, also warned that if the governorship primary of the party was nullified as being canvassed by some people, the party would lose the November election, stating that such action would lead to unending crisis in the party.

“Cancelling the Ondo State governorship primary held on September 3 will not be in the

best interest of the party in the state. I want those, who are clamouring for its cancelation to know that such step will lead to disunity, acrimony and unending crisis that will derail the party from winning the November 26 governorship election,” he said.

Adesanya advised all the aggrieved aspirants to embrace dialogue in the interest of the party and the teeming supporters of the party in the state.

“The aspirants are leaders in Ondo State and we hold them in high esteem. They have the rights to ponder on the primary but we should not throw away the baby with the birth water.

“I want to appeal to the aspirants in the interest of the party and the people of Ondo State, who had contributed to the development of the party, to sheath their swords and allow the party to move on. The present crisis should be seen as a disagreement between twins, which we will get over soon.

“We are confident that APC will win the governorship election because the party is the only alternative to the ruling party in the state and the people of Ondo State are eagerly yawning for the emergence of an APC government in the state,” he said.

Although it is expected that after every such exercise, there are the aggrieved persons, who would for one reason or the other, reject the outcome of the exercise, the thing with Ondo APC’s debacle, especially the argument being canvassed in support of a cancellation of the results belies logic. Granted, there might have been some sort of manipulations, of course from all the concerns, the result of the exercise has not shown that a particular concern was overtly favoured. Instead, it showed an election that was keenly contested with everyone struggling to outdo one another with paltry votes as edge.

The unfortunate thing about the Ondo exercise or the very reason there is so much going on against the emergence of Akeredolu was because the grounds had been prepared for a particular candidate to emerge against all odds, but the result favoured someone else.

QED! In other words, because the expectation of some people was not met since they are subtly laying ownership to the party, the process was flawed, else, it must be their way.

To think that all the aspirants had with them, a list of the delegates ahead of the exercise showed a degree of transparency that is alien to the APC and its affiliates in the past. When placed side-by-side with the process that produced Governor Akinwunmi Ambode of Lagos in 2015, then, the Ondo APC would be commended for a good job. Not one candidate knew who the delegates were in Lagos in 2015 and yet, they all led to the exercise as if they had some magic to perform. What with the result? It was a sweeping landslide.

Therefore, the foul-crying about the process that just produced Akeredolu is misplaced, selfish, undemocratic and completely unprogressive. It shows the tendency of a defective leadership, which throws out everything each time a particular concern does not go its way. This is where the intervention of the collective is crucial before the greed of a few lands everyone in bigger crisis. Time is not on its side and party leadership must step in intelligently to stem the looming disaster.

18

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

POLITICS/ PERSPECTIVE

The Good the Bad and the APC Less than 24 months in government, the All Progressives Congress now suffers serious credibility crisis, writes Magnus Onyibe

S

ome of us would remember the popular movie that featured the iconic Hollywood star, Clint Eastwood titled: The Good, The Bad and The Ugly? For the purpose of appraising the state of the nation today, I would like to characterise Nigerians as the GOOD; the former ruling party, Peoples Democratic Party (PDP) as the BAD; and the new ruling party, All Progressive Party (APC) as tending towards being the UGLY, unless it mends its ways urgently.

The justification for tagging the APC with the toga of UGLY is derived from the fact that traditionally, the romance between Nigerian voters and their elected leaders lasts beyond 24 months before it goes awry, but the fact that APC’s deposits in the goodwill bank of Nigerians got rapidly depleted less than 100 days of being in office, before it started being pummeled online by the same people, who heralded the party into power, spells doom and justifies the appellation – ugly.

In the light of the foregoing, the very pertinent question to ask is: why is it that the good people of Nigeria after being ruled for 16 years by the PDP (1999-2015) until it was defeated by the APC on March 28th 2015, seem to have been consigned once again by some terrestrial forces into remaining in the throes of leadership miasma, which hallmarked the immediate past administration?

The simple answer to that question is that there is no terrestrial power hamstringing Nigeria. Rather, the new ruling party is yet to phantom how to deal with the demon of high expectations from Nigerian voters, which it created by over-promising during her campaign to upstage the PDP and under-delivering.

That much was discussed in my previous article titled APC: Campaigned in Poetry and Governing in Prose, which was widely published in online platforms and mainstream media.

As we may recall, when the APC rode into Aso Rock on May 29, 2015 with change as its battle cry, expectations were high but the new government has been on the saddle of leadership for all of sixteen months, yet it has so far not exhibited any superlative leadership tendencies, leaving most Nigerians highly disappointed.

Those who share the opinion above, buttress their position with the argument that if in sixteen months of being at the helm of affairs – about a quarter of a four year tenure – the party has failed to show signs of its capacity to deliver on its promise to reverse the misfortune that our country has been mired in, since the return to multiparty democracy in 1999, then it is unlikely to make change happen in the remaining period of the four years tenure.

The above assertion is validated by the old saying amongst sailors: “Red sky at night, sailors delight; red sky in the morning, sailors warning”.

In other words, the morning reflects the evening. With the APC displaying Red sky in their political morning, there is cause for the palpable apprehension about the future.

The aforementioned sentiment is underscored by the palpable sense of resentment in the political firmament that one can almost touch physically, owing to the hardship apparently being inflicted on the people by the ruling party hence the APC brand is now looking ugly.

Arising from the scenario above, the same Nigerians, who paved the way for the triumphal entry of the APC into Aso Rock as the ruling party with Muhamadu Buhari as president and Lai Mohamed as minister of information, have been expressing disdain and disgust towards the leadership on online media platforms for failing to provide the change that was promised voters, who awarded APC votes of about 14 million and above PDP’s estimated to be nearly 12 million votes in the last general election.

Some of the rage being spewed online may be base and banal but they are reflective of the resentment of the masses towards the APC and the current Nigerian leadership, which is basically the reason the party is looking ugly.

Although the claims in some of the posts are not grounded in any technicalities and therefore spurious to the discerning eyes, yet they are doing the APC colossal damage

Buhari...change is deteriorating

because they appear to be logically correct to the ordinary folks on the streets. That should give the establishment concern enough to warrant correction of the misinformation via concerted efforts.

But instead of addressing such present and immediate concern/danger, what Nigerians are being regaled with is the new campaign ‘Change Begins with Me’ which the information and culture minister, Lai Mohammed is promoting and which just got launched by president Buhari. To say the least, the campaign is ‘breaking’ at a most inauspicious time because at this critical moment of seeming aimless drift of the ship of state owing to lack of clear policy direction of government, Nigerians are looking for the leader, who would truly drive change.

The electorate had seen that leadership ability and capacity in Buhari hence he was voted into office as president on March 28 2015, but the same voters are now highly disappointed because under Buhari’s watch, performance has fallen short of the high expectations. Rather than change her tact by taking the leadership role more frontally and altruistically, APC is trying to shift the responsibility for change to Nigerians via the latest campaign which is obnoxious.

That is contrary to the party’s promise during its campaign to unseat PDP and in my reckoning it amounts to abdication of responsibility by the ruling party, which appear to have in her DNA the inelegant characteristic of blaming others, apart from its self, for the nation’s current misfortunes.

As a song star once put it, “Every generation blames the one before”, but for how long such art of living in denial can be sustained is a different kettle of fish.

Obviously, the APC does not appear to know when to draw the line.

Some of the main tipping points or headwinds against the wave of popular momentum that swept the APC into power is (a) the lack of tolerance or aversion to dissent by the authorities which is undemocratic (b) lack of inclusiveness which is anti-federal character principle embedded in Nigerian constitution and (c) sluggishness in policy formulation and implementation manifesting as leadership paralysis.

In the light of the foregoing, the earlier the government in power realised that Nigeria is practicing democracy, whose functionality is predicated on freedom of speech, freedom of association and right to express displeasure in civilised manners at government officials, the better for the ruling party in particular and the nation as a whole. Nothing sustains followership in politics or loyalty in business better than keeping promises that were made.

When a leader carries the followers along as the president has started doing lately through his recent humble appeal to Nigerians during the Muslim celebrations by seeking their understanding and patience in this period of socioeconomic tumult, all hands would be on deck to paddle the

sinking canoe to the shore, but if the devil may-care-attitude of the past persists, I see perdition for APC in the hands of voters.

Considering the hunger inspired angst in the nation, the postponed Edo State gubernatorial election holding in about a fortnight and the Ondo state governorship election also in the horizon may turn out to be foretaste of what might happen to the APC in the general election in 2019.

Without discountenancing other factors that may be partly responsible for the parlous state of our economy, which indicates that Nigeria is racing against time as she is competing against 54 African countries and about 200 other countries globally, the speed to remedy the economic situation should be more priority in policy making and implementation for the progress of society, growth of the culture of democracy and lifting out from poverty trap, a critical mass of long suffering Nigerians.

In other words, the president’s fight against corruption is good but priority should be given to combating poverty and restoring hope in Nigerians that all hope is not lost. To further put things in better perspectives, let’s recall some of the major policies so far enunciated by APC led administration in the past sixteen, 16 months with a view to highlighting how the policies have helped or hurt the people in the polity that they were meant to salvage.

In terms of cause and effect, has the massacre of El Zarzaky followers by Nigerian army and his incarceration bridged the Shiite-Sunni divide in Nigeria?

In my considered opinion, the answer is, no.

Instead, the El Zazarkky issue has accentuated the perennial religious crisis which was hitherto at low ebb. Similarly, has putting Nnamdi Kalu, the radio Biafra promoter in dungeon prevented the formation and proliferation of the movement for the Independence of the People of Biafra (IPOB) even after the military allegedly killed many protesters agitating for the creation of Biafra? Rather, it has created more awareness for the proBiafra movement, which has now mutated into two – MEND and IPOB. What about the withdrawal or withholding of payment of stipends to former Niger Delta militants offered through an amnesty package instituted by the late President Umaru Yar’Adua that guaranteed the steady supply of oil for export from the treasure trove of the nation?

From an erstwhile volatile region which had become relatively peaceful following the amnesty gesture sustained by the last administration, thus enabling the production of nearly 2 million barrels of crude oil per day barely 24 months ago, the Niger delta is now in conflagration, and the authorities and Nigerians have literarily been watching our oil assets engulfed in inferno.

Each time I hear the affable Vice-President Yemi Osinbajo lament that about one million barrels of crude oil is being lost everyday due to militancy in the oil rich Niger Delta, I ask why the authorities did not have the foresight of feeling the pulse of the Niger Delta people or reviewing the previous Niger Delta policies with a view to finding out how and why they were formulated before deciding to send out the mixed messages about whether amnesty is being called off or rejigged which I believe is the crux of the crisis in the treasure trove of the nation.

As a result of the aforementioned negligence, the precious oil which should have been fetching our country the much needed dollar to shore up CBN’s fast depleting forex reserve that could have improved the Naira exchange rate and bring succor to the hapless Nigerian workers, that have been contending with backlog of salaries payment, are in flames, as Avengers and a host of other new crop of militants carry out their threat of bringing the Nigerian economy and by implication, the establishment to its knees.

How about the devaluation of the Naira, which has seen Naira trading at over N400/$1? Did the foot-dragging by the authorities in Aso Rock and CBN dilute the effect of the policy resulting in the impairment of the anticipated outcome?

And has none activation of social safety net for the masses, who are being negatively

imparted by the long sought policy of fuel subsidy removal and the associated inflation not left bitter taste in the mouth of millions of Nigerians, whose minimum wage of N18,000 cannot purchase a 50kg bag of Dangote rice, which now sells for at least N22,000?

As if to worsen the horror, it is now being reported in the media that the special adviser to the president on poverty alleviation, Mrs. Mariam Uwais has recently indicated that the much vaunted N500 billion Naira appropriated in budget 2016 as palliative funds for the provision of lunch boxes for school pupils and payment of N5,000 as stipends to the aged and nonemployed indigent Nigerians, is now under threat of not being implementable owing to paucity of funds, which is forcing a policy review.

Without further equivocation, and for more clarity, aside from the plummeting global price of oil which accounts for estimated 90% of Nigeria’s forex income, it is also the cessation or suspension of the amnesty initiative that is responsible for the return to violence and the vandalism of oil/ gas installations in the oil producing region, which has inflicted the following three jeopardies on the nation.

One, the shortage of gas to fire electricity plants resulting in the drop of power supply to a mere 2-3 megawatts from the high of 5,000 at inception of this administration, virtually leaving Nigerians in darkness and hampering productivity in industries that are now operating below capacity.

Two, the dwindling foreign exchange income as oil production has dropped drastically from the 2.2 mbpd allotted by OPEC to an appalling level of 1.5 million bpd which is also partly accountable for the (three) inability of 27 of 36 states in Nigerian federation to pay civil servants salaries as allocation from federations accounts to states is now at its lowest since the return to party politics and presidential system of Government some 17 years ago.

What can be worse than the fact that soon after the inauguration of the present administration on May 29, last year, instead of articulating dynamic plans on how Nigerians may be rescued from the pangs of hunger and starvation which poor leadership over the years reflected in the mismanagement of the nation’s enormous resources foisted on them, the new government at inception started engaging in self-adulation about the socalled ‘body language’ and the ‘new Sherriff in town’ appellation for the leader of the Government, President Buhari based on nothing, but vain glory.

Thereafter, the next priority item on the APC agenda has been fighting corruption, which the new regime has vigorously fought with great success since inauguration, but apart from the ‘feel good’ factor, has the relentless anti-corruption war really alleviated poverty? That’s the question that the masses are asking and to which they deserve answer.

It beats me hollow that our leaders don’t see the virtues inherent in conducting opinion polls to feel the pulse of citizens in order to tailor their policies towards addressing their needs.

This is evident by the fact that 16 months after assuming office, because of the glib talks, fanning of ego and genuflection around the presidency, which have no basis in sound leadership, the president’s image built on falsehood has now collapsed like a pack of cards.

From the foregoing, it needs no restatement that it is government’s lack of clear cut policy direction which has become the hallmark of governance in the new dispensation, that are the initial culprits or building blocks that crystallised into the wave of disillusionment that have now reached very high crescendo.

Having exercised and exhibited their anger on online platforms via sarcasm reflected in numerous cartoons that should have offered a food for thought for our leaders and trigger a rethink of their policies, the rage of angry Nigerians voters seem to have transited into real life arena as demonstrated by a recent incident of naming a dog Buhari in Sango-Ota, Ogun State.

See concluding part on www.thisdaylive.com

T H I S D AY MONDAY SEPTEMBER 19, 2016

19

20

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

FEATURES Understanding Boko Haram Recruitment

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

The recent research findings by Mercy Corps and Ford Foundation in some Northeastern states have shown how gifts, gratification and the promise of protection fuel recruitment of community members into Boko Haram. Martins Ifijeh reports

“I

am Boko Haram. I will bomb this school.” These were the words written by a primary three pupil on the wall of his community primary school in Borno State. He is looking forward to growing up and becoming like some select members of his community who exude ‘power’, have relative economic upgrade and have the ability to convert other people’s properties to theirs, including having young girls as gratification. He wants to grow up a Boko Haram member.

This, and many more reasons, prompted Mercy Corps, an international humanitarian organisation and the Ford Foundation to embark on a yearlong research to ascertain what fuels the recruitment of community members, youths especially, into becoming tools for destabilisation and destruction, as well as why some communities support the sect’s activities secretly in the North-eastern part of the country, especially in Borno State and its neighbours where its activities were prominent in recent years.

With the help of locals, who were hired as research assistants, Mercy Corps and its research team went into several communities inhabited by members of the sect, as well as friends and relatives of the sect, and then spoke to former Boko Haram members and the youths who resisted joining the organisation to ascertain their motives for joining the sect or why they resisted joining, respectively.

Their findings- with the presence of poverty, lack of economic and social presence in most communities, and the belief by many that their communities lacked government presence, Boko Haram presented a lifeline, offering economic ambition to attract or coerce youths by offering financial assistance for young people to grow their businesses, while also offering protection to those sympathetic to their cause.

For some, Boko Haram invested as high as one million naira into their cattle rearing business or farming, while for others, as low as ten thousand naira, motor bikes or even sewing machines were distributed, and in return, they were either made to participate in the sects’ activities or made to provide other forms of support, including provision of intelligence to the group and logistics. For those who rejected the offers, they lived at the mercy of the deadly insurgents who did not spare some of them.

The lead researcher of the project and a civil society practitioner, Ballama Mustafa, said while most of those interviewed, who received financial support from Boko Haram, would have loved to stick to government and be law abiding citizens, they declared that they received Boko Haram’s offers because they did not see any other viable option for growing their businesses, adding that gifts, loans without interests, and a host of other subtle and attractive approaches from the insurgents became a motivation for most of them who eventually joined the sect, adding that, of the 74 community members interviewed, 45 received financial or other types of support from Boko Haram, while seven respondents outrightly rejected gifts or gratification from them.

Giving a detailed analysis of the report, Mustafa said in a bid to understand the motive behind youth participation in Boko Haram activities, the research team sought out different strategies on how to get infor-

Suspected Boko Haram members mation from the members and communities themselves, adding that, they had to work with research assistants, who were members of the communities, known to Boko Haram members and were trusted by the different respondents interviewed, hence the success recorded from getting information needed to complete the research.

“When we started the research, we were not sure if Boko Haram members will be willing to talk to us, but as we went deeper

For some, Boko Haram invested as high as one million naira into their cattle rearing business or farming, while for others, as low as ten thousand naira, motor bikes or even sewing machines were distributed, and in return, they were either made to participate in the sects’ activities or made to provide other forms of support, including provision of intelligence to the group and logistics

into the project, we discovered they were more than willing to talk. They earned the trust of our research assistants and ours, and they opened up.”

According to him, “for many community members, their financial ambition and needs either attract or make them vulnerable to Boko Haram’s financial service offerings, as they viewed the services as promising opportunity to get ahead or as an essential strategy for keeping their livelihood on tract.

“For instance, a male respondent explained how he was complaining to a friend that he wanted a job so he could better provide for his parents. The friend then liaised with Boko Haram leaders who secured a motor cycle for him. Same was the story of another male youth who used the financing from the sect to open a brick laying business, and in return worked for the sect,” noting that all 45 respondents who got financial or other forms of support from Boko Haram agreed that it was their motivation for joining the sect or indirectly supporting them.

Lack of access to government’s social and economic programmes fueling sect’s recruitment He said of those interviewed, majority were first approached by Boko Haram, while a few made the initiative to get funding from the group, adding that, most respondents reported that they took support not out of belief in Boko Haram’s ideology or to support the organisation’s activities, but because they did not see an alternative to access cash or credit. “Almost all the recipients said that government’s support was preferable, but that

these services were not attainable without political connections or bribes,” he explained.

He said while some respondents said they were unaware of existing government programmes and services capable of supporting their services, others who were in the know said they believed such services cannot be accessible by them, adding that such programmes could only be for the wealthy and well connected.

Boko Haram’s support as a bait for recruitment Explaining that the financial support by the insurgents have been used for both recruitment and to gain community support, he said some respondents noted that those who benefitted from the financial support were asked to drop out of Nigerian formal education system so as to embrace the ideology of the sect.

“Some of the women given support were also forced to marry male Boko Haram combatants, while the group also forced government employees who benefitted from their support to quit their jobs because the group had declared government activities at any level to be haram,” Mustafa added.

The Lead Researcher also added that another key finding was that Boko Haram could demand services related to recipient’s particular type of business in exchange for support.

“For instance, Boko Haram used achaba (private motor cycle taxi) drivers who had received financial support from the group, as messengers, delivering letters between cities and communities. Also, respondents operating larger scale trading, especially those involved in the transport of goods and services between cities, were offered informal

21

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

FEATURES loans or the possibility of participating in a joint venture in exchange for carrying Boko Haram members from one city to another or for smuggling goods.

“In another example, Boko Haram kidnapped a female business woman’s family and used her store to hide weapons and ammunitions.

They provided her with both money and goods to keep business operating as a front, but her family remained in captivity, compelling her to comply with Boko Haram’s demands.

“In the most extreme case, as our first study showed, Boko Haram demanded that one of the beneficiaries of its financial support participates in the group’s military activities.

He was given boots and a gun, but he ran away to avoid joining. The group later took over his house,” he added.

He said most of the financial support to community members and potential combatants came during or before 2009 when the group became violent, adding that, when people started noticing the violent dimension of the group, respondents increasingly became hesitant to accept the assistance out of fear. “Rather than accepting assistance, some residents who became pressured to become affiliated with the group fled their communities, leaving behind their businesses.

Others accepted money, but did not spend in case they were asked for it later.”

In addition to purely transactional demands by the group, he said Boko Haram often accompanied financial services with persuasive tactics intended to garner more widespread support. “Also, there were communities that showed gratitude to the group, thereby exposing government deficiencies in providing for communities.

“Many of those who received financial support from the group later understood there were no particular condition attached to the assistance, as conditions were either fluid and unpredictable. Demands and conditions could come at anytime and without warning, and in some cases, it may be a year after the financial support had been given.”

While many got everything Boko Haram promised them, including finance and protection, the Director of Conflict Management, Mercy Corps, Rebecca Wolfe, said Boko Haram also broke its promises on a number of occasions.

“For instance, one male recipient described how Boko Haram protected his shop for a time, but later burnt it down during massive attack,” the director noted.

According to her, while nearly three quarters of the respondents knew that the financial incentives came from Boko Haram, in some cases, recipients believed they were receiving financial support from a friend or an acquaintance unaffiliated with the group.

“Sometimes, Boko Haram approached individuals through a friend or neighbour, with an offer of investment in their business. An example was that of a young woman who was receiving zakat, the Arabic term for giving to the less privileged, considered a religious obligation in Islam. However, she was later told she had to marry someone from Boko Haram in exchange for the money.

Recommendations from the research Wolfe said from the several respondents, it was clear that Boko Haram took advantage of the deep dissatisfaction with governance and provided economic support to increase its recruits and improve standing in the communities.

She explained that the group’s financial and in-kind support to community members achieved two objectives simultaneously. “First, by providing an alternative set of services for community members, it highlighted government and private sector deficiencies.

Second, it provided an immediate pathway for people to get ahead by offering ways for them to expand their businesses.

She said ultimately, the lack of perceived alternatives made residents of the North-east vulnerable to Boko Haram’s financial schemes, adding that while money itself was not the singular driving factor in participation in Boko Haram, the perceived lack of financial options provided opportunities for the group, even if only for a limited time, to juxtapose perceived government’s inability to deliver services with a movement willing to support those looking for a way ahead.

She said in the light of the findings, the recommendations will largely focus on addressing the governance gaps at the root of

L-R: Civil Society Practitioner, Borno State, Ballama Mustafa; Monitoring, Evaluation and Learning Manager, Mercy Corps, Claire Ugo-Ike; Programme Officer, Ford Foundation, Dabesaki Mac-Ikemenjima and Director, Conflict Management, Mercy Corps, Rebecca Wolfe, during the presentation of the Research on Boko Haram Recruitment Strategies in Lagos ...recently

Suspected Boko Haram members Boko Haram’s rise.

“Government, private sector and civil society actors should first find out what the youths in these areas need to get ahead in life, whether it is financial capital, in-kind support, skills and training or a combination, and government and all stakeholders should

Some of the women given support were also forced to marry male Boko Haram combatants, while the group also forced government employees who benefitted from their support to quit their jobs because the group had declared government activities at any level to be haram

be ready to provide programmes that would increase economic opportunities for them, as this could serve as a useful model.

“Civil society and development partners can provide additional alternatives for the informal sector. These could include business services, informal access to financial programmes, and employment skill for the vulnerable. Any civil society initiative should complement government efforts, not supplant them,” she added.

She called on government to increase accessibility and transparency to its economic programmes, adding that the public perception that government economic development programmes were only available to the elite few creates a receptive audience for Boko Haram’s anti-government messages.

“Additionally, applications for these programmes should be made transparent and the government should ensure programme administrators are held accountable for fair selection practise,” she explained.

She also advised the government to create platforms to warn community members about Boko Haram financial schemes. “Because of the sensitivities of speaking about affiliation with the group and because of a lack of communication channels, youth and other

community members often have little access to information about the risks they face.

“Another thing that can be done is for the expansion of the role of the civil society in developing the economic sector of the North-east. Their role and the accountability of government programmes is crucial to ensuring that growth is inclusive and that government policies and programmes target at-risk groups,” he explained.

Meanwhile, the Programme Officer, Ford Foundation, Dabesaki Mac-Ikemenjima, noted that the research found the causes of the recruitment of individuals, adding that when the recommendations were followed strictly, they would help in curbing the uprising in the region.

He said: “It is partly because they lack economic resources, because they are excluded from political discussions, and also because their education system is weak.

On whether some of the recommendations made would help in solving the issue of Boko Haram insurgency in Nigeria, he said since the recommendations focus on economic livelihood for young people in the region, if integrated with economic and social support, it would be useful in addressing the challenge of youth involvement in the insurgency.

22

IMAGES

T H I S D AY • MONDAY, septeMber 19, 2016

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

Rasheed Salawu, CWG Plc Emergent Business Director(left), receiving CWG’s ‘ICT Conglomerate of the Year’ award presented by Mr. Emmanuel Ekuwem, EVC of Teledom Group at the Africa Digital Awards (ADA) 2016 in Lagos...recently

L-R: Secretary, Economic and Financial Crimes Commission (EFCC), Emmanuel Aremu; Corps Marshall, Federal Road Safety Commission (FRSC), Mr. Boboye Oyeyemi; and EFCC Chairman, Ibrahim Magu, during Magu’s visit to Oyeyemi in Abuja...recently

L-R: Maintenance Manager, Firstnation Airways, Mr. Ferudun Ozdemir; Deputy Cabin Services, Mrs. Barbara DanAsemah; and Director, Flight Operations, Capt. Chimara Imediegwu, at a media chart with aviation journalists in Lagos...recently KOLAWOLE ALLI

R-L;; Lagos State Governor, Mr. Akinwunmi Ambode, with winners of entrepreneur category, Biogas Production, Sarumi Oluwafemi; Dada Samuel; and Country Senior Partner, PricewaterCooper (PWC) Nigeria, Mr. Uyi Akpata, during the Ready Set Work Initiative of the Lagos State Government graduation ceremony in Victoria Island, Lagos...recently

L-R: Director General, iCare Foundation, Deen Sanwoola; representative, Ikorodu Federal Constituency and Founder, iCare Foundation, Hon. Babajimi Benson; Event & Sponsorship Manager, Joyce Onyegbula; and Head, Sustainability & Corporate Brand, Lafarge Africa Plc, Temitope Oguntokun; during a school renovation project at the Anglican Nursery and Primary School, Oke-Oyinbo, Ikorodu, Lagos...recently

L-R: VP, FBN Capital Asset Management, Laura Fisayo-Kolawole (left), receiving the Best Managed Funds Award (Equity Based and Money Market Funds) from Uyi Akpata, Senior Partner, PWC, at the 2016 BusinessDay Banking Awards in Lagos...recently

Osun State Governor, Mr. Rauf Aregbesola (right), presenting a gift to the acting Vice-Chancellor Obafemi Awolowo University, Prof. Anthony Elujoba, during the vice-chancellor’s courtesy visit to the governor in Osogbo...recently

L-R: Secretary General, Nigeria Gas Association, Mr Adebola Martins; President NGA, Mr. Bolaji Osunsanya; Group Executive Director and Chief Operating Officer, Gas and Power Directorate, Nigerian National Petroleum Corporation, Mr Saidu Mohammed; and Group Managing Director (GMD), NNPC, Dr. Maikati Baru, during a courtesy call by the Nigerian Gas Association executives to the GMD of NNPC in Abuja...recently

23

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD R A T E S

NIBOR OVERNIGHT 1-MONTH

29.4167 20.7904

A S 3-MONTH 6-MONTH

A T 21.4458 24.7096

Group Business Editor Chika Amanze-Nwachuku Email chika.amanzenwachukwu@thisdaylive.com 08033294157

S E P T E M B E R

1 5

6-MONTH 9-MONTH 12-MONTH

19.3764 20.5132 22.4006

NITTY 1-MONTH 2-MONTH 3-MONTH

15.8218 15.8678 16.2693

,

2 0 1 6

EXCHANGE RATE N308.69 / 1 US DOLLAR* *AS AT LAST FRIDAY

Quick Takes MTN Rewards Smartphone Users with Data Bonus

AIRTEL TOUCHING LIVES

L-R: Director, Corporate Communications & CSR, Airtel Nigeria, Emeka Oparah; Publisher, Business Day Newspaper, Mr. Frank Aigbogun; Managing Director/Chief Executive Officer, Airtel Nigeria, Mr. Segun Ogunsanya; Founder, Brilla FM, Mr. Larry lzamoje; and Managing Director, CMC Connect, Mr. Badejo Okusanya at the unveiling of Airtel Touching Lives Season 3 in Lagos…recently.

ABIODUN AJALA

Aviation Insurance: Arik Air Risks Being Grounded Ebere Nwoji

Arik Air, the airline giant whose operations was suspended last Tuesday on account of its inability to normalise its insurance papers with the Nigerian Civil Aviation Authority ( NCAA), is currently facing fresh risk of being grounded on October 12, 2016 as the company is yet to fully comply with insurance requirements of the NCAA and the National Insurance Commission( NAICOM).

Investigations by THISDAY over the weekend on the insurance status of the airline revealed that NAICOM, the regulatory authority for insurance industry, only granted assurance approval in principle to Arik Air for one month effective 13th September, 2016. This followed the request for approval submitted by the insurer

AVIATION on Friday, September 9, 2016.

The airline last week suspended its flight operations in order to avoid breaching the provisions of the Montreal Convention 1999, which specified mandatory adequate insurance covering of liability of any airline while in international flight operations.

Though the airline was said to have been permitted to resume operations a day after the suspension by the NCAA, latest information from NAICOM indicated that airline will, in less than one month, face risk of being grounded if it fails to upgrade its current insurance status.

Public Affairs Manager, NCAA, Mr. Sam Adurogboye, in an SMS response to THISDAY ‘s

enquiries on the insurance status of the airline and reason for the brief suspension said:”Arik has to put its operates on hold pending the normalisation of its insurance papers with NCAA. That was done yesterday(Wednesday) and normal services restored since yesterday. I want to categorically confirm to you that insurance policy for all the aircraft in the fleet of Arik are now fully validated and in order. This is the much I can confirm to you.

No airline will be allowed to fly any aircraft without valid insurance. Aviation insurance is a serious issue, violation is viewed seriously.”

The Communications Manager of the Arik Air, Mr Ola Adebanji, had explained that the disruption was temporary, pending approval of aircraft documentation related to

insurance renewal.

He said: “This situation is likely to continue for the next few days until such time that the NAICOM approves a waiver on a priority basis for the new insurance company to renew the policy.”

But from its end, NAICOM said the airline has not fully complied with its stringent insurance requirements but that it only granted it one month’s grace approval in principle.

The Montreal Convention is a multilateral treaty adopted by a diplomatic meeting of International Civil Aviation Organisation (ICAO) member states in 1999. It emphasises safety precautions including insurance in aviation industry.

Explaining the role NAICOM played in resolving the hiccups Continued on page 24

Analysts Point Ways out of Economic Recession Goddy Egene As the federal government intensifies efforts to move the economy out of recession, experts at FSDH Research, have identified some measures the government can take to fast-track the recovery process.

FSDH Research, in its monthly Economic and Financial Market Outlook report for September obtained at the weekend, said one of the ways out is for government at all levels to pay the salaries of their workers.

“We recommend that government should borrow money to achieve this. This will increase the public debt in the short-term but it will also help to increase spending power, and lower

ECONOMY firms’ inventories of finished goods. Consequently, the firms would employ more factors of production and pump money into the economy. In addition, there would be an increase in profits of firms, from which government can realise higher revenue in the form of taxes in the medium-to-long term,” the experts said.

They also suggested an increase in civil servants access to loans, saying the current purchasing power of civil servants has been depressed with the current rising inflation rate.

“Government can partner some Nigerian banks or Central

Bank of Nigeria (CBN) to extend loans to civil servants to boost consumption. Government will guarantee the loans and deduct monthly repayment at source.

This will achieve the same result as the strategy one above,” they said.

Another suggestion is for the government to partner foreign development financial institutions and foreign real estate development firms. According to them, these financial institutions should be encouraged and attracted to invest in the real estate sector in Nigeria to provide low income housing estates for workers.

“Government should also involve the local real estate firms in this exercise. The government should also provide lands while

it provides funds through the development partners. Mortgage loans should be provided to civil servants to buy houses.

The government should use the Nigeria Mortgage Refinance Company (NMRC) in conjunction with the deposit money banks and mortgage banks to distribute the loans.

Doing this will mean both the supply side and demand side are adequately taken care of. The strategy will generate activities in the real estate, manufacturing, construction and finance sectors of the Nigerian economy. These sectors are also labour intensive and generate employment opportunities, with the capacity to increase the revenues of both the Continued on page 24

MTN Nigeria has launched a campaign that rewards its subscribers with 100 per cent data bonus on any data purchased over a period of six months.

The campaign tagged ‘Drop Dat Kpalasa’ is aimed at deepening internet penetration in the country as well as improving the lifestyle of customers across the country.

With the campaign, potential and existing MTN subscribers can enjoy the offer by purchasing any smartphone device of their choice wherever they reside in Nigeria and once they subscribe to any data plan on the MTN network, they get a 100 per cent data bonus for six months.

Commenting on the launch of the smartphone upgrade campaign, the General Manager, Consumer Marketing, Richard Iweanoge emphasised the need for every Nigerian to work and live smart using their Smartphone devices.

“Smartphones can ease the daily routine of all our customers nationwide. The use of a smartphone enhances our lives in diverse ways. This ranges from communicating with friends, family, and coworkers to constant internet access, music streaming, watching videos on the go, taking pictures, gaming, getting health tips and much more,” Iweanoge said.

He added that while a large percentage of Nigerians are not accessing internet services owing to non- data enabled devices in use, this campaign will inspire more Nigerians to use smartphones and be rewarded with 100 per cent data bonus for a period of six months.

Arik Denies Hosting Workers’ Unions

The management of Arik Air has denied hosting aviation unions when airline workers joined the unions.

The airline said while it was not against the unionisation of its workforce, it has not in a way supported or discouraged such and therefore denounced the report that inauguration of the executive members took place in the airline’s facility.

Last week the three leading industry unions, the National Union of Air Transport Emplyees (NUATE) the Air Transport Service Senior Staff Association of Nigeria (ATSSSAN) and National Association of Aircraft Pilots and Engineers (NAAPE) claimed they inaugurated their executive members in Arik Air. The report indicated that the ceremony took place at the airline’s headquarters at the Murtala Muhammed Airport (MMA) Lagos. But Arik Air’s management said such event did not take place in any of its facilities.

Rotary Donates Wheel Chairs to FAAN

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Saleh Dunoma, has taken delivery of 13 wheel chairs donated by the Rotary Club of Falomo.

At the presentation ceremony held at the domestic wing of the Murtala Muhammed Airport, Lagos at the weekend, the Dunoma, who was represented by the authority’s director of maintenance and engineering, Olufemi Ogunode thanked the club for the laudable gesture.

Speaking further, he noted that FAAN would continue to partner private organisations and well-meaning Nigerians who are committed to the advancement of quality service delivery at the nation’s airports.

Dunoma noted that FAAN will continue to ensure the provision of quality services to air travellers and other airport users at all times.

The President of Rotary Club, Falomo, Rotarian, Orji Ajah in his brief remarks, noted that as part of the club’s philantropic culture and their core value of lending support to less priviledge, it decided to complement the vision of FAAN to continually render efficient services to air travellers and other airport users.

This, he said, motivated the need to donate these wheel chairs to improve the ease of facilitation of passengers with disabilities.

“We are targeting to raise about $10billion to $15 billion. We are looking for this because what we need to charge this economy is foreign currency.

Foreign currency shortage is largely responsible for were we are today” Minister of Budget and National Planning,

Udoma Udo Udoma

24

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD AVIATION INSURANCE: ARIK AIR RISKS BEING GROUNDED

associated with the Arik Air insurance, a top official of the commission told THISDAY that the approval in principle granted to the airline was for one month with effect from 13th September, 2016.

According to him, “NAICOM granted assurance approval in principle on Arik Air Insurance for one month effective 13th September, 2016. This followed the request for approval submitted by the insurer on Friday, September 9, 2016.”

The commission had before now expressed worry on nonchalant attitude of airline operators over their insurances, lamenting that where they insure, they prefer to insure abroad despite the local content law of the federal government.

The commission, had through its ‘no premium no cover’ policy implemented January 1, 2013 warned the insuring public to ensure that their insurances are up to date and that renewal of any expired contract be done without delay, insisting that any insurance contracted not fully paid for before a risk occurred will attract no compensation and any insured who fails to renew his policy contract at the expiration of the previous agreement should consider himself not under any insurance cover.

ANALYSTS POINT WAY OUT OF ECONOMIC RECESSION

federal and state governments,” they said.

The FSDH Research analysts added that the government should concession major highway and railway lines in Nigeria to both local and foreign private sector investors.

“We have argued that there is a need for the federal government to involve the private sector to develop the transport network. This will create jobs and also attract foreign capital into the sector and other related manufacturing sector of the Nigerian economy. We believe the above measures with the revolution going on in the agro-allied processing activities, and with partnering the private sector to improve infrastructure, Nigeria will be out of the recession faster than expected,” they asserted.

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 (AgriBusiness)

NEWS

Aviation Workers Reinforce Opposition to Concession Chinedu Eze Despite the decay of airport infrastructure, aviation workers still oppose planned concession of major airports in the country.

Aviation workers, under the National Union of Air Transport Employees (NUATE) in a communique issued at the weekend condemned the plan by the federal government to concession airport facilities.

Realising its inability to continue to provide fund for airport infrastructure development and considering the level of decay of facilities at the airports in the country, the federal government decided to concession major airports in order to attract private sector funds.

But workers still oppose this plan, insisting that the airports should not be concessioned.

In the communique signed by the General Secretary of NUATE, Olayinka Abioye, the workers said they condemn “in most unmistakable terms, the plot by the Honourable Minister State Aviation, to concession four Nigerian Airports considered as cash cows of the entire 22 operating airports in the country; without recourse to extant rules, due process, social dialogue with stakeholders and other extant agencies connected with civil aviation in and out of Nigeria.”

According to the comunique, the national executive council (NEC) of NUATE has therefore, called for immediate stoppage of the concession of Nigerian airports, to avoid industrial crisis that may arise as the government has failed to

carry along stakeholders on the concession programme.

NUATE also frowned on the failure of the Nigeria Civil Aviation Authority (NCAA) to embark on manpower training, noting that human development is part of the core duties of the regulatory authority.

“The NEC in-session condemns most profoundly the continued failure of NCAA management to enhance and engender human capital development through routine trainings and recurrent retraining of its personnel which has become paramount in the discharge of their responsibilities to airline operations and inspections.

NEC hereby demands that all

approved trainings (both local and international) be reinstated and commenced within one month, as the union will have no alternative than take this matter to higher authorities,” NUATE said.

However, NCAA has said that it still carries out training but due to paucity of funds it has discontinued overseas training and decided that most of the training should be done locally.

NUATE noted also that NCAA has been unable to find accommodation for its staff at the Port Harcourt International Airport.

“It was established that workers on duty each day had to rotate sitting in the available

Following the successful establishment of its N30 Billion Commercial Paper (CP) Programme on 23 August 2016,FSDH Merchant Bank Limited has launched its debut commercial paper issuance to raise up to N15 billion in the Nigerian money market with the issuance of a Series 1, 90-day and Series 2, 269-day commercial paper.

The commercial paper offers were open to investors on August 24 and closed on August 29 2016 with subscription levels of over N17 billion.

However, the bank elected to allot N14.98 billion to investors across both series, in line with its initial target amount.

The bank, in a statement, said the commercial paper programme will afford it periodic access to the money market for short term funding as and when required.

It added that the funds raised from the now concluded Series 1 and 2 issuance will be applied by the bank for its general banking asset and liability management purposes including replacement of maturing wholesale liabilities.

International Air Transport Association (IATA), while we also condemn casualisation in the two companies which is inimical to safety and security of the aviation system.”

The union also observed the unacceptable situation of workers in SAHCOL and directed that appropriate mechanism be put in place to bring the management of SAHCOL to the table for review of its conditions of service, failing which, applicable labour action should follow.

The union also condemned the ill treatment given to retired workers of the Nigeria Airspace Management Agency (NAMA).

DISCUSSING STATISTICAL DATA

L – R: Director, Monetary Policy, Central Bank of Nigeria, Mr. Moses Tule; Director, Technology and Science Education, Federal Ministry of Education Mrs. Tina Eyaru; President, Nigerian Statistical Association, Dr. Mohammed Tumala and Special Adviser on Special Duties to Kogi State Governor Hon. Adaidu Akoh during the 40th annual national conference of Nigerian Statistical Association in Abuja…recently.

FSDH Merchant Bank Establishes N30bn Commercial Paper Programme Eromosele Abiodun

waiting office space, while some had to malinger around waiting for a chair or table to work,” the union said.

The union also condemned what it described as unethical and unhealthy rivalry between the Nigerian Aviation Handling Company (NAHCO) and Skyways Aviation Handling Company (SAHCOL) and said: “We hereby call for the immediate intervention of the NCAA to stem the unacceptable development, calling for stakeholders meeting between these bodies and streamline a functional pricing template acceptable to parties in conjunction with applicable rules or guiding principles of the

“The FSDH CP Programme is the first ever to be established by a merchant bank in Nigeria under the new guidelines on CP from the Central Bank of Nigeria, published in 2009.There was strong retail and institutional investor (including pension funds, asset managers, insurance companies, trustees and high net worth individuals) participation in the offer. This demonstrates confidence in the FSDH brand as evidenced by the acceptance of the issues in the market by the diverse categories of investors to whom the securities were distributed, “ said the Managing Director of FSDH, Mr. Rilwan Belo-Osagie.

While speaking at the signing ceremony in Lagos, Belo-Osagie had said: “We are very pleased with the establishment of this CP programme for FSDH and the dedication and support of the advisors in making this a success. FSDH was very active in the commercial paper market prior to 2009and the establishment of this CP programme serves as an opportunity for the Bank to restate its presence and significance in the money market and participate in the development and deepening

of commercial paper market under the new regulations”.

He added, “FSDH provides a one-stop shop for financial services in Nigeria as it offers corporate and investment banking and wealth management services to its clientele. Its service offerings include asset management, fixed income and foreign currency trading, equities trading, wealth management, corporate banking and other investment banking services which it offers through the Bank and its three independently managed subsidiaries: FSDH Asset Management Limited, FSDH Securities Limited and PAL Pensions Limited.”

The notes, Belo-Osagie added, will be quoted on the FMDQ OTC Securities Exchange platform to facilitate active secondary trading of the commercial papers.

Arrangers on this transaction include FSDH Merchant Bank Limited (via its investment banking unit), Stanbic IBTC Capital Limited (a member of Standard Bank Group)and United Capital Limited while FSDH Merchant Bank Limited acted as the issuing, calculation and paying agent.

AMCON Takes Over Assets of CityScape Goddy Egene The Federal High Court Lagos Division has granted interim orders in favour of Asset Management Corporation of Nigeria (AMCON) to take over the assets of Cityscape International Limited, a major player in the real estate sector of the Nigerian economy. AMCON has since appointed Mr. Anire Kanyi as Receiver to Cityscape.

The company said in a statement that Justice A.M. Anka, the presiding judge while granting the order on the application of counsel to AMCON, restrained Mr. Akinwale Akinmusire who is the managing director/chief executive officer of Cityscape from challenging, interfering with or otherwise obstructing or frustrating the receiver appointed by AMCON over the assets of the company.

The Cityscape’s indebtedness to AMCON is put at about N6billion.

The Court also mandated the receiver to take over and preserve all the assets of Cityscape including the property situated at Buena Vista Estate, Lafiaji Town, Lekki, Lagos State and measuring 25.52 hectares being assets covered by Deed of Legal Mortgage dated December 2009 and registered as No. 12 at page 12 in Volume 2014 at the Land Registry, Ikeja (Mortgaged and charged for a loan granted to Cityscape International Limited and guaranteed by Akinmusire.

The presiding judge said the

order was pursuant to section 34, 35 and 48 of the Assets Management Corporation of Nigeria Act 2010, section 6 of the Asset Management Corporation of Nigeria (Amendment) Act 2015 and the Deed of Appointment pending the determination of the Motion on Notice filed along with the motion.

The order also restrained Cityscape, Akinmusire, Cityscape directors, shareholders, agents, servants, employees and or privies howsoever named or any other person acting under their authority from interfering with or otherwise obstructing the receiver in the course of his duties as Receiver over all the assets of Cityscape including the aforementioned property situated at Buena Vista Estate, Lafiaji Town, Lekki, Lagos State.

Justice Anka, however, ordered all banks and financial institutions, the Central Bank of Nigeria (CBN), agencies, institutions and organisations having custody of Cityscape’s fund to furnish the receiver or his office the details of any sums standing to the credit of Cityscape within seven days of being furnished with the order.

All 400 obligors of AMCON are said to account for more than N4.5 trillion, which is approximately 80 per cent of the total outstanding loan balance of the corporation’s over 12,000 accounts with obligors that have failed to fulfill their obligations over time despite obvious efforts of the corporation.

25

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

MARKET REPORT

Year-to-date Decline Reduces as Stock Market Gains 1.0% in Three Days Goddy Egene and Nosa Alekhuogie

Consumer Goods Index and NSE Insurance Index appreciated 0.4 per cent and 0.3 per cent respectively.

While gain in Unilever (+6.8 per cent) propelled the consumer goods indicator, NEM Insurance (+3.7 per cent) was responsible for the upswing in the insurance sector gauge.

The market appreciated for the third consecutive day on Friday as the NSE ASI went up by 0.48 per cent to close at 27,858.48 points, bolstered by gains recorded in the share prices of Dangote Cement, Nigerian Breweries, Unilever, GTBank and Nestle Nigeria.

Positive sentiments by investors propelled demand for mid cap stocks leading to a growth of 1.04 per cent in the Nigerian Stock Exchange (NSE) All-Share Index last week. Although it was a three-day trading week as the federal government declared Monday and Tuesday as public holiday to mark the Eid-el-Kabir celebration, investors were bullish throughout the week. Consequently, the ASI closed higher at 27,858.48 thereby reducing the year-to-date decline to 2.7 per cent.

Market capitalisation added N96.5 billion to close at N9.570 trillion.

Similarly, all other indices finished higher during the week, with the exception of the NSE Banking Index, and the NSE Insurance Index that depreciated by 0.92 per cent and 1.04 per cent respectively while the NSE ASeM Index closed flat.

The NSE Consumer Goods Index led the sector gainers, rising by 2.3 per cent due to gains in Unilever (+14.2 per cent) and Nigerian Breweries Plc (+2.3 per cent). The NSE Oil & Gas Index closed 1.0per cent on account of sustained buy sentiment in Conoil Plc (+33.8 per cent) as well as Total Nigeria Plc (+3.7 per cent) and Oando Plc (+2.0 per cent). In similar vein, the NSE Industrial Goods Index rose 1.0 per cent on the back of price decline

by Dangote Cement Plc (+1.8 per cent).

Daily Performance Summary Investors gained N22billion on Wednesday being the first day trading resumed for the week. The market opened for only three days as Monday and Tuesday were declared public holiday. When trading resumed on Tuesday, the Nigerian Stock Exchange (NSE) All-Share Index rose by 0.23 per cent to close at 27,642.13, while market capitalisation added N22.2billion to be at N9.5 trillion.

The performance on that day trimmed the year-to-date decline to 3.49 per cent. The positive close was propelled by price gains recorded by Dangote Cement Plc, Stanbic IBTC, Unilever, Lafarge Africa and Flour Mills of Nigeria Plc among others.

However, Conoil Plc led the overall price gainers’ chart as investors continued to react to the impressive 2015 full year results of the petroleum products marketing firm.

The stock appreciated by 10.1 per cent to close at N26.21 per share, trailed by Unilever Nigeria Plc with 4.9 per cent. Conoil Plc posted a growth of over 176 per cent in profit after tax to N2.308 billion for 2015, up from N834 million in 2014. Based on the improved bottom-line, the directors recommended a dividend of 300 kobo per share, up from 100 kobo in 2014.

Conoil attributed the improved performance to efficient management of resources, effective cost control policy, as well as reaping from its huge investment in the expansion and upgrade of its facilities.

“For us, the downstream sector remains fundamentally attractive and viable today and the future. With our clarity of direction and focus, our company’s long-term success is assured. We will sustain this improved performance and vigorously pursue our aspiration to remain the nation’s leading petroleum products marketer and one of the most profitable quoted companies,” the company said.

In terms of sectoral performance, the NSE Industrial Goods Index led with 0.5 per cent, trailed by the NSE

Market turnover Market turnover was 611.527 million shares worth N5.495 billion were traded in 9,650 deals last week, compared with 1.183 billion shares valued at N10.300 billion the previous week in 16,522 deals. However, the Financial Services Industry remained the most active with 517.964 million shares valued at N2.933 billion traded in 5,931 deals. The sector contributed 84.70 per cent and 53.37 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 30.470 million shares worth N1.488 billion in 1,561 deals. The third place was occupied by the Conglomerates Industry with a turnover of 27.836 million shares worth N55.012 million in 395 deals.

Also traded during the week were a total of 945 units of Exchange Traded Products (ETPs) valued at N9,541.90 executed in 18 deals, compared with a total of 943 units valued at N1.357 million transacted the preceding week in 28 deals.

A total of 1,700 units of Federal Government Bonds valued at N1.591 million were traded in two deals compared to a total of 9,140 units of Federal Government Bonds valued at N9.198 million transacted the previous week in six deals.

Consumer Goods Index with a gain of 0.3 per cent just as the NSE Oil and Gas Index inched up marginally rose 0.01 per cent. Conversely, the NSE Banking Sector Index closed negative, down 0.7 per cent, while the NSE Insurance Index shed 0.4 per cent.

The bulls extended their dominance of the market on Thursday with the NSE ASI rising by .30 per cent to close at 27,725.40, while market capitalisation went up by N28.6 billion to close at N9.5 trillion. The growth recorded in the share prices of Dangote Cement, Stanbic IBTC, Unilever, Lafarge Africa and Access Bank contributed to the appreciation in the NSE ASI. Market activity on that day was mixed as volume traded improved 9.9 per cent to settle at 200.3 million units while value traded fell 10.7 per cent to close at N1.6 billion.

A further analysis of the day’s trading showed that the banking sector index was the lone loser. The NSE Banking Index fell by 0.8 per cent on account of sell pressure in Guaranty Trust Bank Plc (-1.9 per cent) and United Bank for Africa Plc (-1.6 per cent). On the other hand, the NSE Oil & Gas Index (+1.2 per cent) led the list of gainers on the back of improved buy interest in Conoil Plc(+10.2 per cent) and Total Nigeria Plc (+3.7 per cent).

The NSE Industrial Goods Index

appreciated by 0.5 per cent, driven by gains in CAP Plc (+2.7 per cent)

TOP TEN BROKERS(BY VALUE)

and Dangote Cement Plc (+0.9 per cent). In a similar vein, the NSE

AS AT LAST FRIDAY

BROKER STANBIC IBTC STOCKBROKERS LIMITED EFCP LIMITED A.R.M SECURITIES LIMITED - BRD RENCAP SECURITIES (NIG) LIMITED

VALUE

% VALUE

2,516,168,721.43

22.86

1,527,939,733.30

13.88

975,993,606.35 759,719,818.59

8.87 6.90

SECURITIES AFRICA FINANCIAL LIMITED -BRD

458,726,433.70

4.17

CORDROS CAPITAL LIMITED - BRD FBN SECURITIES LIMITED GTI SECURITIES LIMITED - BRD

329,455,443.92 321,725,225.70 309,250,487.23

2.99 2.92 2.81

CHAPEL HILL DENHAM SECURITIES LTD - BRD CSL STOCKBROKERS LIMITED

TOP TEN BROKERS

(BY VOLUME)

BROKER FBN SECURITIES LIMITED STANBIC IBTC STOCKBROKERS LIMITED

287,333,120.41

2.61

263,443,240.43 7,749,755,831.06

2.39 70.40

AS LAST FRIDAY VOLUME %VOLUME 104,337,357

8.53

101,821,613

8.33

RENCAP SECURITIES (NIG) LIMITED

98,516,825

8.05

EFCP LIMITED REWARD INVESTMENT AND SERVICES LIMITED

87,622,770 83,948,631

7.16 6.86

51,252,113

4.19

AFRICAN ALLIANCE STOCKBROKERS LTD MORGAN CAPITAL SECURITIES LIMITED

50,964,553

4.17

APEL ASSET LIMITED - BRD

44,342,358

3.63

CARDINALSTONE SECURITIES LIMITED

42,265,663

3.46

A.R.M SECURITIES LIMITED - BRD

39,674,882

3.24

704,746,765

57.62

Gainers and losers Meanwhile, 34 equities appreciated in price last week, higher than 24 equities of the previous week.

Conversely, 26 equities depreciated in price, lower than 38 equities of the previous week, while one 120 equities remained unchanged higher than 118 equities recorded in the preceding week.

Conoil Plc led the price gainers, rising by 33.8 per cent, trailed by Unilever Nigeria Plc with 14.2 per cent. African Prudential Registrations Plc garnered 13.7 per cent, just as Cutix Plc and International Breweries Plc rose by 5.5 per cent and 5.2 per cent in that order.

Other top price losers included: Airline Services and Logistics Plc(5.0 per cent); Pharma-Deko Plc(4.9 per cent); John Holt Plc (4.7 per cent); A.G Leventis Nigeria Plc(4.6 per cent); and PZ Cussons Nigeria Plc (4.5 per cent).

On the contrary, Neimeth International Pharmaceuticals Plc led the price losers with 8.4 per cent. AIICO Insurance Plc followed with 7.4 per cent, while Transcorp Plc shed 7.1 per cent. United Bank for Africa Plc and FCMBN Group Plc fell by 6.8 per cent and 6.5 in that order.

Other major losers were: Portland Paints and Products Nigeria Plc (5.0 per cent); Fidson Healthcare Plc (4.7 per cent); Transnationwide Express Plc (4.6 per cent) Wema Bank Plc (4.5 per cent) and Union Bank of Nigeria Plc (4.2 per cent.

26

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

INSIDE BROAD STREET

A view of Lagos financial district

AKINWUNMI IBRAHIM

Business Expectation Survey Reveals Mixed Outlook Obinna Chima At 51.1 index points the third quarter Business Expectation Survey (BES) for the third quarter (Q3) of 2016, showed positive outlook in the volume of business activities.

This reflected higher prospects for employment in the next quarter, as the employment index stood at 29.7 points.

The third quarter BES released by the Central Bank of Nigeria (CBN) recently, also revealed that the employment outlook index by sector, showed that the services sector (11.9 per cent) had higher prospects for creating jobs, followed by the wholesale/ retail trade (8.2 per cent), industrial (5.1 per cent) and construction (4.4 per cent) sectors.

On the analysis of businesses with expansion plans by sector in the next quarter, the services sector indicated higher disposition for expansion with an index of 59.2 points.

Similarly, construction, wholesale/retail trade, and industrial firms indicated expansion plans for Q4, 2016 with indices of 57.4, 54.9 and 46.2 points, respectively.

The respondent firms identified insufficient power supply (69.1 index points), financial problems (58.2 index points), unfavourable economic climate (51.4 index points), high interest rates (51.0 index points), competition (41.3 index points), insufficient demand (40.2 index points) and unclear economic laws (39.6 index points) as the major factors constraining business activity in the current quarter.

Majority of the respondent firms expected the naira to depreciate in the current quarter and appreciate in the next quarter, as the confidence indices stood at –26.1 and 0.4 points for the current and next quarter.

The Q3, 2016 BES was conducted during the period August 1st to 13th, 2016. A total of 1,950 firms were surveyed nationwide,

MARKET INDICATOR drawn from the updated survey frames of both the CBN and the National Bureau of Statistics (NBS).

The survey produced a response rate of 99.1 per cent in the quarter under review Respondents were drawn from the industrial, construction, wholesale/retail trade and services sectors. The services sector is made up of financial intermediation, hotels and restaurants, renting and business activities and community and socials Services.

The distribution of firms by sector showed that services sector constituted the highest number of respondents (35.4 per cent), followed by wholesale/retail (26.0 per cent), industrial (25.3 per cent) and construction (13.2 per cent).

A breakdown of the respondents by type of businesses showed that 15.4 per cent were import-oriented, 1.9 per cent were exportoriented, 9.0 per cent were both import– and export-oriented, and 73.7 per cent were neither import- nor export-oriented.

The distribution of firms by employment size showed that small size firms constituted 79.5 per cent of responses, medium size firms 14.8 per cent, and large size firms 5.6 per cent.

The overall confidence index (CI)3, which stood at –24.1 points in Q3 2016, indicated respondent firms’ pessimism on the macro economy, however at 35.1 points, the overall CI points to greater confidence on the macro economy in the next quarter. The pessimistic outlook of respondents in the current quarter was driven by the opinion of respondents from industrial (-9.8 points), wholesale/retail trade (-6.8 points), services (-4.2 points) and construction (-3.3 points ) sectors. Conversely,

the expected drivers for the optimism on the macro economy in the next quarter are services (14.8 points), wholesale/retail trade (10.8 points), construction (5.2 points) and industrial (4.3 points) sectors.

The drivers (by type of business) of the pessimism on the macro economy in the current quarter were “neither importer nor exporter” (-14.3 per cent), followed by “importer” (-6.3 per cent) and ‘both importer & exporter” (-3.4 per cent) (Table 2 Section 23).

The drivers (by size of business) of the pessimism on the macro economy in the current quarter were the small (-19.3 per cent), medium (-2.7 per cent) and large (-2.0 per cent).

The respondents’ confidence index on own operations was less optimistic across all sectors in the current quarter than it was in the corresponding quarter of 2015. The confidence indices of industrial, wholesale/ retail trade, construction, and services sectors stood at –24.3, -15.6, -13.3 and –3.1 in Q3, 2016 as compared to their levels of 8.1, 11.9, 0.4 and 16.2 in the corresponding quarter of 2015, respectively.

In addition, the financial condition index in the current quarter stood at -13.1 per cent and was driven by the industrial (-6.2 points), wholesale/retail trade (-4.1 points) construction (-1.8 points) and services (-1.1 points) sectors.

Respondents’ pessimism in the volume of total order and internal liquidity positions, dampened the volume of their business activities in the current quarter. Similarly, respondents pessimism on access to credit, further lessened their internal liquidity positions in the review quarter.

The capacity utilisation index stood at –7.8 in the current quarter as compared to 18.1 in Q3, 2015.

At –7.8 points, the average capacity utilisation

index (CUI) in Q3, 2016 dipped by 25.9 points when compared with the 18.1 points achieved a year earlier. Respondent firms expected inflation rate to rise in both the current quarter and the next quarter, with confidence indices of 29.2 and 2.5 points for the current and next quarter, respectively Similarly, respondent firms expect the borrowing rate to rise in the current quarter and decline in the next quarter as the confidence indices stood at 19.5 and 4.8 points, respectively.

Since the implementation of the flexible exchange rate regime, the naira has depreciated about 35 per cent on the interbank, from N199.00/$1 to N308/$1 on Friday.

The adoption of a single interbank market was expected to reduce the frequency of interventions by the central bank in the foreign exchange market. However, as a result of minimal participation by autonomous players at the interbank, the CBN has had to carry out interventions at a higher frequency (than pre-flexible FX regime) in a bid to clear rising FX demands and contain the pressured exchange rate at the interbank.

The impact of these interventions on the external reserves is evident as gross external reserves has declined from $26.4 billion (as at 23rd June 2016) to $24.9 billion (as at 14th September 2016).

“The importance of the return of foreign capital cannot be overemphasized, as the constant FX intervention coupled with the impact of lower global oil prices and supply disruptions on oil earnings will continue to pressure the external reserves. Furthermore, the liquidity constraint at the interbank continues to pressure rates at the parallel market as the Naira has depreciated to a low of N425/$1,” analysts at Afrinvest West Africa stated.

Wema Bank Osolo Way, off Airport Road, Ajao Estate, Lagos Nume Ekeghe Situated on the commercial/industrial axis of Ajao Estate, along the way to the international airport, looking at the exterior of this branch, one would think it is a big branch, but inside the hall is very small compared to its exterior.

Also, this branch has parking constraints

INSIDE BANKING HALL and the security guards on duty on the day this observation was carried out, did nothing to assist customers. They were equally very rude and nonchalant.

There were three customer service person-

nel seated at left from the entrance and two tellers straight ahead attending to all banking transactions.

At the time of this observation, some of the lights inside the banking hall were not working, thereby making customers to carry out their transactions in a slightly dark environment. It was also not very tidy.

But the customer services personnel were

good. They were very polite and performed their duties in professional manner.

However, the tellers were slow and as a result, queues started building up because of influx of customers into this branch.

Customer service was commendable but the management of Wema Bank is advised to improve on the bank’s service delivery and to also provide enough parking spaces for customer.

27

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

INTERVIEW

Sirika: We are Regulating Airlines Activities on Daily Basis The Minister of State for Aviation, Senator Hadi Sirika spoke to journalists on plans to rejuvenate the industry. He said airlines are regulated on daily basis to ensure their aircraft are airworthy. He also stated that Aero Contractors would not be allowed to go under. Chinedu Eze brings the excerpts. fuel markets. We discussed extensively and we have reached some very good conclusions.

The intent of the stakeholders forum in Abuja was to show the direction which we are heading and for us to be so appropriately guided by the end users and stakeholders within the industry.

It was a document that we prepared to see whether we are in sync and we are thinking together. And it was thoroughly examined and accepted and not a single item was rejected from the list, all the things that we said we would do were agreed on and nobody thought that the direction we are going was wrong.

Concession or privatisation of Airports I am most delighted to be among you today for many reasons. The reason number one is the importance of the press or media in general cannot be over emphasised. We have seen the capacity and what it can do to change the umbrella and bring the broom because that is exactly what happened. They reported the transition as it is and the people decided. So wherever you have a very vibrant media, I think 60 percent of your problems are solved. If your intention and intents are known and actions are followed and your actions are reflected you can be rest assured that you would carry those that you are leading along.

Most of the problems we have are lack of information. Just the other week some branches of the aviation union were all over the country protesting against our decision to concession the airports. I am very, very sure that its lack of information, because I could see from the reports or from even their letter of protest and so on a mix up what the concession is and what the privatisation or outright sale of assets is.

So if we had interacted before now the press would have done the job for me, would have put things in perspective for people to be to make decision and also do the right choices.

So for me you are extremely important.

If you go to our airports the state at which they are is terrible and there are efforts to make it better. It is only the media that can sell ideas to people and they swallow it. They are masters of language, they have better delivery; they understand the listeners both people watching them and those reading them. So they know how to mold their opinions and they know how to put it through. So long as the public understand them.

So my appeal to you my friends is, please, I am attempting to sell our idea, in attempting to balance your story, please endeavor to do what you are good at, investigative journalism and try as much as possible to dig down into the route of the matter, balance it, break it out and throw it into the world. You would have achieved two things, one: by the time they buy your paper or they watch your TV or they listen to your radio or your blog or wherever you sell your ideas and they read and they find it is factual, they will get glued to you and the brand will stay for a very, very long time even when there are options.

Re-election of ICAO President, Aliu So it is my intention to continue to do this interaction between Ministry and the stakeholders, to tell them our vision, and to help us reason together so that we can make adjustments as we progress. And the end result will be of benefit to the people. The next time we are going to do this stakeholders’ meeting, it was initially agreed for some time in September arising from the last one that we did, but September is looking to me a bit difficult in view of the International Civil Aviation Organisation (ICAO) Council and General Assembly meeting that is coming, where Nigeria is participating. I would like to use this opportunity to appeal to you that it is a very important event for the country, Nigeria because a Nigerian, DrOlumuyiwa Bernard Aliu, the current President of ICAO Council is going to be re-elected. I have travelled round the world to campaign for the upcoming elections.

And here is the significance, in this day and age of aviation with all the security and safety challenges the entire world from America to China, from South Africa to Iceland, they have all trusted Nigeria and its citizens to give Aliu the president of the ICAO council.

National Carrier and Maintenance Facility The question of the National carrier came up. This is national carrier we plan to establish is not as we thought it will be, it is not that the government will put its money and create the national carrier. It is going to be fully private sector driven, it will go through all the processes and establish a very strong, viable carrier that will fly the flag of Nigeria and attain the status that it deserves. Also we thought that some of the impediments to the growth and development of aviation would be addressed if we established a full-fledged private sector driven Maintenance Repair and Overhaul (MRO) centre. We made a case for it, we discussed the pros and the cons and we saw how really important it is. I also want to say that government will encourage people to invest in the sector so that they can provide service to the planned national carrier.

Sirika He is the sitting president now and he is coming up for election for a second time. Nigeria itself also is in the part two ICAO Council as member and it is extremely very important, because there are only part one, part two and part three. In Africa there are three countries, Nigeria, Egypt and South Africa in the part two.

And of course there are other great aviation nations within the continent of Africa including of course Ethiopia, Morocco etcetera and yet Nigeria has the opportunity to be one of the three that are going to defend the status of the title for membership for part two.

So September stakeholders’ conference doesn’t look too good, if we can do it in September we may let you know otherwise we will put a new date. And we please crave your indulgence to be there so that all of the questions that I am getting online, sometimes through text messages, sometimes through some programs that I would watch either on TV stations or radio. Those questions may necessarily not

arise; you will be the ones to answer those questions on our behalf.

Interacting with Stakeholders When we interact with stakeholders and when we carry out our retreat with the league of airport and aviation correspondents, I am sure some of those questions will be asked and you will help us to enlighten the society and the country in general. So I would like to say that I am very glad to meet you. So I think it is extremely important that we continue to meet and interact periodically so that we can together improve this industry.

We have met with unions within the industrythe Air Transport Service Senior Staff Association (ATSSSAN), the National Association of Aircraft Pilots and Engineers (NAAPE), the National Union of Air Transport Employees (NUATE) and others. We also met with the management of Asset Management Corporation of Nigeria (AMCON) and then we also met with the aviation

Aircraft leasing Everybody is in agreement that the inability of Nigerian airlines to lease equipment, whether the airplane or the aircraft or the spares, engines and so on is a huge hindrance to the growth and development of aviation in Nigeria. So if you have a leasing company that can do that it will further help the growth of the industry. If you also have an airplane that is flying around here, Boeing B737 or whatever kind of airplane is, you have to do the maintenance and you have to go to Europe, the cost of ferrying the aircraft out there and bringing it back and the cost of maintenance in hard currency would be such a huge factor for growth. So we think that if we should have leasing company established within our country or within our sub continent or region, the MRO will go a long way. And we thought of trying to create through concession of our airports, not privatisation but concessioning the airports beginning with the major four airports. And then also add on to the big four some maybe about six that are dedicated to perishable terminals for export. This will help us to also grow aviation business in Nigeria.

In all of these, we are very conscious of what Nigeria is as a country. You know more than I do that Nigeria is a 170 million people with 923, 678 square meters of land and it is serving the West Africa market. West Africa itself is 400 million people with Central Africa, if you add the numbers is about 600 million people.

And these 600 million people are twice the size of US and it is half the size of India. It is a very interesting market for transportation, we understand that and there is total absence of a very strong carrier within this region. There is total absence of any Maintenance Repair and Overhaul centre, there is not a single leasing company that I can remember etc. so we think that we are in the right direction, we think that we are in the good market, we think that we have the potentials and the advantage to locate CONTINUED ON NEXT PAGE

28

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

INTERVIEW

SIRIKA: WE ARE REGULATING AIRLINES ACTIVITIES ON DAILY BASIS precisely on Friday (September 2), I arrived Lagos in transit to Abuja and I remember the Managing Director of Aero sent me a text that he is having some engagement with the unions, so I decided to go there and see how he is doing and I was more than lucky to see some of my colleagues in Aero and I had a one-on-one with them. On getting there I was confronted with about 300 people protesting and jumping and saying that AMON must go. So I listened to them and I promised them that I would go and discuss the issue with the management of Aero and AMCON and then discuss also with the Ministry and come back to further discuss with them and find a solution.

I did meet with the management of Aero Contractors and I also met with the unions, but I was not able to meet with AMCON. So we met, we understood ourselves, we saw where the problems are coming from, we can almost look at the solutions and we agreed that they should give me some time to reach out to AMCON after which we will come back and take a position. I think it is at that level that I should come to the press because I don’t want to preempt what we have started. But on the general, I am of the belief that the problems the airlines are having are of different kind within them but they are not insurmountable, they are issues that can be dealt with, they are issues that can be resolved and most of them have proven to be so.

Quite a number of them are still strong to continue but of course we have commenced our standing activity in regulating these airlines on a daily basis. It is my intention to discuss what we have done so far in the next stakeholders meeting regarding the status of our airline. But under our oath we can only hope that nothing should come our way that we will not be able to surmount and wish and pray that anything that is within our wisdom and that we can reach we will do to save and safeguard the industry.

Like I said during the stakeholders meeting I am not a person that will allow aviation to die for many reasons: I don’t know of any other trade but transportation. I have my two sons studying right now in the industry; most of my colleagues and their children are in the industry.

these thing within our country.

Passenger growth That being the case, we cannot grow when our airports are in their present states. You can’t create a hub out of MurtalaMuhammed airport or NnamdiAzikiwe Airport the way they are or Port Harcourt or Kano. Because some of the recent wide body high capacity airplanes that are flying around the world, the Airbus A380 and the newer version of Boeing B777 are just too sophisticated and too large to be handled by our airport at the moment the way they are. And because the atmosphere within these airports is not anything to write home about and they are not the ideal, it is extremely difficult for us to attract passengers to create the necessary hub.

Today we are doing 15 million passengers per annum, we believe with the right things in place, Nigeria has the potential of doing 70 to 100 million passengers within five years, easy. I remember when I used to go to UK frequently, I don’t go with British Airways, I go with KLM and the only reason was because I wanted to transit through Schiphol airport in Amsterdam with a fantastic duty free, with Spa and restaurants and with an environment that you would not want to go away from. I always make sure that I have some reserve change for me to come and meander around that beautiful airport to pick one or two items and come home. People always thought that why would I want to go and transit and come home when if you enter BA within seven hours you are in Lagos. The answer is because I enjoyed the environment; and research has shown that about 40 percent of the passengers like to transit through fantastic airports. Dubai is a classical example; the duty free in Dubai is $1.2 billion and people like to go through Dubai as a hub and most of them are not ending their journey in Dubai, they are only passing through.

Concession But here you pass through our airports it is only cigarettes and liquor you will see. So we must be able to develop these airports, but then we don’t have the money to do so. Government no longer has money to put into these public properties. And as social democrats we are not also willing to sell or privatise these entities, we will not, we want to retain them. We are jealous of the facilities so we don’t want to let them go. So the only option we have is to concession the airports. And the way I put it in the simplest form is you having your house, a bungalow of three rooms and one boys’ quarter sitting on a 7, 000 square meters in Ikoyi, we used to have them. And somebody walks up to you and says he is going to be paying you N300, 000 a month for you to give it to him, promising to construct a 14-storey building, 28 flats and also build a small room for you and your wife where you be staying and that every month he will be giving you some change in your pocket and that after 20 years all those flats will be yours. I don’t see anybody that will reject that. That is concessioning your land. I have a personal experience, my very close friend, late YinkaAdetona had a small parcel of land and somebody offered to put up 14-storey, 28 flats and I asked him if this is a good idea for 25 years that it is too long.

Now just before he died, the 25 years got to an end, he collected his property and took a vacation for two weeks to go and think of what to do with his property first.

His children are now enjoying the property now. Imaging if he had refused, and said he would not temper with it. That is the same way some people are thinking, they will say we cannot concession the airport, we have concession other things what have we gotten from it, so let the terminal remain as it is. And tomorrow you will call the minister and say the airport is too hurt, the air condition is not working. You compare it with Terminal 5 of Heathrow airport in London, but government of the United Kingdome did not put its money in Terminal 5. The money is simply not there.

So what is concession? In 24 months you can get a brand new huge terminal that can take 50 million people with a new runway, with all the additives, with shopping malls there, with cinemas, with Spa, gym, everything. We have seen it and it is done in 24 months and people will transit nicely, you will attract all of the traffic. Imagine yields from 15 million

Sirika passengers from Nigeria and Lagos alone will be doing 50 million passengers movement. Those 50 million if you give them $1,000 to spend how much is that? We will concession.

Attracting investment We went to Ethiopia a few weeks after I became a Minister. In a room of this size within the Ethiopian Airlines complex, what did they do? They assemble wires for Boeing. They will buy the wires somewhere and every other thing and they just join them together and assemble those wires. Year one they made $100 and they are only 15 of them on shift in a small room like this. And as at the time we went they produced 40,000 wires with no single default and these wires go into the Boeing aircraft.

All the wires that Boeing uses are produced in Ethiopia. We are twice the size of Ethiopia, they have no oil, we have oil. The resources we have they don’t have but they are now trying to use knowledge-based economy to beat us. So if we can establish these kinds of things we can make the money. For me I don’t like to think about oil, I want to conserve my environment, I like to think of other ways of making money and sure, aviation is a moneyspinner but you have to get it right. You have to do the things that are correct, so you have to be able to establish that MRO. I know of a shop that is doing only B737 and they posted a profit of $20 million. And today if you want to go to Ethiopia to maintain your aircraft, they will give you a long list, you might probably be number 31 and you have to wait. It is a shame that we cannot maintain anything here in Nigeria, so we will do these things but it is all private sector- driven.

Thanks to Aliu, the ICAO Council President.

I mentioned to him that part of the problem of aviation in Nigeria is management. For example, the Nigeria College of Aviation Technology (NCAT), Zaria from 1964 when it was established till today has not gone beyond production of basic licensing for pilots, engineers, air traffic controllers and so on. Even fire service, you know we have to send our

people to Cameroon for training, but like I said, not any more, they will begin to do it in Zaira. We will establish our own here. Now we need to produce aviation managers, we need to produce aviation scientist, people we can sit down and even design aircraft. The fact that you have engineers or pilots does not mean that you are a good aviation manager.

So we need to have an aviation university that we can produce people that will manage the future of the industry. And we are partnering with ICAO and some others to establish that university for us. And all of these are not grandiose; they are things that are achievable.

Don’t forget that I am a politician; I will like to say that within the Buhari government that these are achievable. These projects that are conceived can be finished within four years maximum. I think I have captured the major ones there are quite a number of things we discussed in Abuja on that day and we are tracking it and we are making progress. We are aligning with the various laws and Acts of the National Assembly to proceed.

So next time we are going to do the stakeholders meeting we will invite all of you and give you the progress report of where we are and what we aim to achieve.

Aero and other domestic carriers There are quite a number of reasons as to why some of these airlines are finding it difficult to operate. I have not met with the airline today. The only ones I met, as an airline is Aero Contractors. And it is work in progress.

What happened in Aero Contractors is that they were having some kind of internal problems and that the management at the time took a lot of loans from banks and AMCON came to buy that loan and eventually AMCON own more that majority of Aero Contractors, so I think they got the permission to go in there and takeover and put a receiver and after that they changed and put a management staff there to try to hold on for a while. And then it kept going down and that is where we are at the moment. A couple of days ago, I think

Nigeria Airways Workers’ Pension Among the things we discussed at the stakeholders meeting in Abuja was the question of Nigerian Airways pension. Already a position is being taken by government, I assured them that day that we are computing and putting the paper work together, we are approaching government to give it attention it deserves. So that is work in progress, so they will soon smile by God’s grace. We hope that we should be able to find the necessary funding. It is a huge amount of money but the government is compassionate and I have no doubt that government will make effort to do something in that regard.

Fate of Aero Contractors On whether what is happening to Aero will happen to other airlines, I don’t think it is a business modern decision, I don’t think so I think the businesses are different in terms of consumption and in terms of how it is being run. So I think it is something very different, it is not something that is unique; it is not something common to other airlines. There is no commonality in the problems, so I think other airlines will survive.

And regarding the assurance of nobody will lose his job, I said the primary purpose why I am appointed as a Minister and also the purpose for which the government of this nature, the APC government in power which is social democratic in nature, we don’t want people lose jobs, it is not our intent. The purpose of the government and the purpose of me being Minster is to create, sustain, maintain, nurse and develop businesses for them to be able to continue to provide the service needed and to employ our people. So I think it is very clear, we will do everything possible to first save the airlines as much as we can. Saving the airline means saving the job therefrom. In the process of saving the airlines, like I said to you, I need to finish and talk with AMCON before I can come out with the clarity of what we intend to do. But for sure and be rest assured that we are here to serve the people, to protect jobs, to create some more and then to develop and enhance businesses.

29

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

NEWS

Study Highlights What Air Travellers in Nigeria Prefer Chinedu Eze A study on 2015 Aviation Trends conducted by Forsa Institute for Social Research and Statistical Analysis, one of the leading German market research and opinion polling companies, has revealed and insight about the wishes of air travellers in Nigeria.

The 2015 Aviation Trends was conducted in seven countries including Germany, United Kingdom, United States, Japan, United Arab Emirate (UAE), South Africa and Nigeria.

Commissioned by Turkish Airlines, the study showed that 99 per cent of Nigerian air travellers are cautious about the safety standard of airlines when booking a mid- or long-haul flight.

The study also showed that first-class support- before, during and after the flight is essential for the success of any airline.

Out of the number of people surveyed for travel behaviour in Nigeria, 42 per cent have not travelled by plane at all in the last two years, 21 per cent have taken one or two flights, 19 per cent travelled by plane three to four times while 17 per cent have taken flights more frequently. Also 61 per cent of those surveyed indicated that they had travelled shorthaul in the past two years, while 21 per cent had taken medium-haul flights, and 32 per cent chose a long-haul flight.

Interestingly, in passenger satisfaction delays, the report revealed that 25 per cent of those surveyed were not affected by delay in the past two years. Only 12 per cent of affected travellers were very satisfied or satisfied, while a significant number of 65 per cent were less satisfied or dissatisfied.

The survey further showed that 46 per cent of the airline customers will feel very safe with a two person rule in the cockpit, 35 per cent would like a member of the police or security personnel on board of the aircraft, while 65 per cent would appreciate the possibility for air traffic controllers on the ground to intervene with what is happening in the cockpit.

The study also revealed that before flying, 84 per cent of passengers book their flights themselves online, and that 54 per cent of all the passengers surveyed who booked their flights online make use of comparison sites for price consideration, easy and clear selection of departure and arrival airport and flight times, additional information about the travel destination as well as integrated booking options.

An airline’s reputation is a crucial aspect and this regard here 99 per cent

of all those interviewed indicated that an airline’s safety record is important for them. This figure is even higher for travellers flying more frequently, and that 100 per cent believed that airline’s safety record is important or very important.

According to the report, 92 per cent of Nigerian travellers also appreciated established good services on board in economy class that will make them to feel comfortable.

The report also touched the positions of air passengers during the flight. Accordingly, it states that 45 per cent are opposed to the use of mobile phone call on board.

The main argument against phone calls is safety reason with 90 per cent, followed by disturbances with only 51 per cent. However, 43 per cent of travellers would appreciate permission to make mobile phone calls during a flight only if the fee is within their power.

Other passengers also desire a seating comfort and good entertainment.

For instance, 98 per cent of the passenger wants to have a friendly, attentive and accessible staff. Apart from this, 97 per cent also wants a clean cabin and lavatory while 93 per cent also prefers wider seat spacing including economy class.

Similarly, 87 per cent wants a screen panel in the back of the front seat, and the percentage increased to 93 per cent, 94 per cent for those who travel frequently or long haul. In the area of menu, airlines have to take into consideration difference among the passengers. For 82 per cent, the choice of several menu options is important.

Also, 59 per cent would like to have a vegetarian menu, while having the choice to get meatless meals is equally important among 59 per cent to 58 per cent female and male travellers respectively.

Comfort is not only limited to food, 76 per cent of the airline passengers like the possibility to obtain additional cover and pillows when requested. 72 per cent air traveller wants free onboard headphones while 63 per cent of those surveyed like to have a multilingual range of newspapers and magazines to read. This is about nine per cent increase in comparison to the previous year.

In the after flying segment, the report shows that air travellers highly cherish airline support and good services. In the cases of lost luggage, 69 per cent of those surveyed did not experience lost luggage in the last two years. The report states that out of 31 per cent of those who lost luggage, 13 per cent were satisfied or very satisfied with the service of the airline, while 18% were less satisfied or dissatisfied. Apart

from this, out of 30 per cent of all surveyed passengers that had to face damage to their luggage, only eight per cent were satisfied or very satisfied with the service of the airline, while 22 per cent were less satisfied or dissatisfied. Interestingly, 70 per cent of the passenger did not experience any damage to their luggage.

In the event of luggage going missing, passengers consider it absolutely essential to have an information desk in the luggage reclaim area.

The study shows that after touching down, 95 per cent of all passengers surveyed believe there should be appropriate information about waiting time for entry or Customs clearance, while 93 per cent are interested in notes about custom regulations.

Not only this, the report showed that 89 per cent also opined that there should be speedy entry for disabled passengers with small children. Also, 88 per cent wish to have information about how long it takes to get from the gate to the baggage reclaim. 88 per cent consider free assistance with reclaiming luggage from the conveyor belt.

Report shows that 95 per cent wish to get information about the latest exchange rates. It also reveals that 90 per cent of the passengers find it important or very important to be informed about options for onward travel by taxi or public transport shortly before landing. While 86 per cent want a pick-up by a pre-booked taxi or transport service delivery in the arrival hall. Also, 77 per cent believe it is important or very important to be given assistance by an employee of the car hire with where they have booked a car.

About the future of air travel, the study also reveals that 68 per cent Nigerian air travellers wish to use the internet during flight, 67 per cent wants more seating space and more comfortable seats, 43 per cent would like to have a sleeping compartment on long-haul flights.

Other findings show that 29 per cent surveyed like to have massage seat, almost the same in every age class. 16 per cent of the surveyed prefers bar and the percentage of the male people is much higher in comparison to the female travellers which stand at (21 per cent vs 5 per cent). Also 23 per cent of the surveyed passengers would appreciate having shower during flight.

According to Dr. Temel Kotil, CEO, Turhish Airlines, this study “will contribute to creating more diversification and innovation within the Nigerian Aviation business.”

30

MONDAY SEPTEMBER 19, 2016 T H I S D AY

31

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

NEWS

Forum Seeks Deeper Collaboration in Telecoms Industry Regulation Stories by Emma Okonji Information and Communications Technology (ICT) stakeholders have stressed the need for deeper collaboration and understanding among telecommunications operators, industry regulator and the three tiers of government, in order to address the issues of overregulation in the telecoms sector.

The stakeholders, who spoke at a forum in Lagos at the weekend, organised by Nigeria Information Technology Reporters’ Association (NITRA), and sponsored by Airtel Nigeria, said the collaboration was of essence so as to improve on service quality in the telecoms sector and to also boost subscribers’ interest.

The stakeholders expressed their displeasure over the incessant closure of Base Transceiver Stations (BTS), otherwise known as base stations, by some government agencies across federal, state and local governments, in an attempt to regulate the telecoms industry, which already has NCC as its regulator. They said such closure of BTS adversely affects free flow of communication, since subscribers connected to such BTS would be completely shut out of the communication link, thereby making it impossible for them to make calls with their mobile phones.

Counting the gains of the telecoms industry and its contribution to the country’s GDP, which is put at N1.58 trillion as at June 2016, amounting to 9.8 per cent contribution to GDP,

the stakeholders said there was need to protect the telecoms sector from collapse that could emanate from over-regulation and multiple taxation.

Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, who was represented by the Director, Public Affairs at NCC, Mr. Tony Ojobo, said as a regulator, NCC would strive to create accessible and affordable telecommunications services across the country.

Danbatta, however said: “We do also agree that some sister agencies tend to be over zealous in trying to help us do our job and in the process, create unnecessary difficulties for our telecoms operators. However, this is being addressed at the various levels of government and I can promise that the story will be much better very soon.”

Director, Legal and Regulatory Affairs/Company Secretary, Airtel Nigeria, Mr. Shola Adeyemi, in his presentation, said there was need for stronger collaboration of relevant stakeholders, to address cases of multiple-taxation in order to ensure that service quality is improved upon for the ultimate benefit of subscribers and the country.

Keynote speaker, the General Manager, Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA), Mr. Babajide Odekunle, who was represented by the Head, Commercial at LASIMRA, Mr. Adekunle Adeyinka, said the agency was established in 2004 under the Laws of Lagos State

No 23 Volume 37, in order to ensure a one stop agency for all issues regarding utility infrastructure ranging from water, gas, power and telecommunications.

“This mandate ranges from conception, project management, development and maintenance of all such infrastructure in order to ensure orderly urban development,” Odekunle said. He insisted that the agency would not do anything to stifle the growth of the telecoms sector that is contributing so much to GDP, aside enriching live styles of people and creating job opportunities.

“LASIMRA has been a fore runner in promoting ease of doing business in Lagos State as issues of over regulation or multiplicity of taxes, levies and charges are completely eliminated,” Odekunle added.

Chairman of the stakeholders forum, who doubled as the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, called for caution in regulating the telecoms industry, in order to avoid the same challenges that forced many businesses and companies out of business.

According to him, “While under regulation will lead the chaos and high security risks, over regulation will limit the use and application of dynamics of modern technology and also limit access to global trade and knowledge. We must continue to debate these issues in order to guarantee the sustainability of our technology development.”

Zinox Boss Refutes Claims of Contract Fraud The Chairman of Zinox Group, Mr. Leo Stan Ekeh, has denied claims that his company was involved in a contract fraud deal involving N170 million as published by an online newspaper , insisting that it was blackmail.

The newspaper had on Thursday last week, published that Ekeh and four others were quizzed by the Economic and Financial Crimes Commission (EFCC), over alleged N170 million contract fraud, carried out by his company, but when contacted, the EFCC said there was nothing of such.

In a swift reaction to the publication, Ekeh said the publication was malicious and untrue, regarding it as blackmail.

According to Ekeh, “Our attention has been drawn to an on-going campaign of calumny by serial blackmailer, Mr. Benjamin Joseph, an indigene of Enugu State and purported owner of an Ibadan-based Technology Company, Citadel Oracle Concept, against the Chairman, Zinox Group, Leo Stan Ekeh which he has taken to the domain of an online news media after other online and print media houses who confirmed his story as false refused to publish in a matter concerning a subject of criminal proceeding against him.”

He said contrary to his longdrawn campaign of calumny, threats to life and series of blackmail attempts against me, Joseph was charged to court by the Police for false information on Charge Number CR/216/16 before the FCT High Court, Abuja after forensic evidence showed that a Board Resolution bearing his signature which he claimed to have been forged was actually his.

In a statement signed by the Head, Corporate Communications at Zinox Group, Mr. Gideon Ayogu, the company said: “Mr. Joseph had never met with our Chairman, Leo Stan Ekeh nor transacted any business with Zinox Telecoms or Zinox Technologies Ltd. Our Chairman has also never met him in person or even spoken with him on the phone. If Joseph has any evidence of such meeting let him make it public. Mr. Joseph is only bent on spreading falsehood and spurious allegations in a bid to blackmail our Chairman to call him for negotiations to stop the blackmail.”

“The truth is that the complaint arose from a business transaction between Citadel Oracle Concept Limited, Mr. Joseph’s company, their appointed staff/representatives, Princess Kama and Chief Igbokwe, when they won a

contract for the supply of HP laptops to the Federal Inland Revenue Service (FIRS). Having no funds to execute the contract, his appointed staff/ agents approached one of our sister companies, Technology Distributions to supply them the laptops on credit pending payment by FIRS. “In view of previous bad experience and in order to avoid exposing the business to bad loans, it is our normal business practice that if a client is taking products on credit for onward contractual supply to a customer, staff of Technology Distributions would have to be signatories to an account opened for the purpose of disbursement of funds as regards the contract.

This is the only security for the laptops supplied on credit. This was how our staff, Mr. Chris Eze Ozims and Mrs. Shade Oyebode became signatories to the account.”

According to Ayogu, immediately the contract was executed and payment effected by the FIRS, Technology Distributions simply deducted the pre-agreed invoice sum of the laptops and had its staff resign as signatories to the said account. This was the same procedure/process applied to other customers who had similar contract with FIRS for the supply of similar HP laptops at same time.

32

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

BUSINESSWORLD

NEWS

NITDA to Discuss Africa Investment Forum for Gitex 2016 Emma Okonji The National Information Technology Development Agency (NITDA) is firming up preparations for the Africa Investment Forum (AIF) in its engagements with major drivers of Nigeria’s technology sector in Lagos, the country’s commercial hub.

Expected to lead testimonials on Nigeria’s investment climate are: Chairman of Zinox Group, Chief Leo Stan Ekeh, , Founder/CEO, Systemspecs, Mr. John Tani Obaro; Founder/ CEO of Precise Financial Systems, Yele Okeremi, and Founder/CEO, Signal Alliance, Mr. Collins Onuegbu. Others are Founder/CEO, Omatek Computers Plc, Mrs. Florence Seriki; CEO, Rack Centre, Mr. Ayotunde Coker and , the Deputy Governor of Plateau State, Prof. Sonni Gwanle Tyoden, who is a delegation to share investment potential of the state. Also expected are testimonials on the Africa investment scene from the continent’s leading lights in Kenya, Ghana, Gambia, Egypt, and Sierra Leone, among others.

NITDA is co-managing the AIF with the Dubai World Trade Centre (DWTC) as part of major conference highlights around the major themes of this year’s Gitex Technology

Show scheduled to hold at the World Trade Centre in Dubai from 16th -20th October 2016.

The AIF will focus on technology investments and how the continent could leverage on increasing value to GDP of ICT in most developing economies.

Speakers across different verticals will be speaking on ICT diffusion across different sectors that include education, cybersecurity, startups, retail, energy, healthcare, and finance.

More than 20 African countries are expected to participate and provide groundwork for driving further investments in the ICT sector of the participating countries.

The acting Director General of the NITDA, Dr. Vincent Olatunji, said in Lagos that “Nigeria offers some of the continent’s brightest spot for technology investments.

Despite the current recession, the opportunities of investment and the returns on investment (RoI) remain huge.”

“Your company and many others embody a strong testimony of how the Nigerian economy is supportive of private sector investments. You are a strong testimony to the outside world that businesses are thriving solidly here. No amount of pictures or words can make a better case than your own testimony as an operator that Nigeria is an

investment friendly haven,” said Olatunji while engaging the Ekeh inside the Zinox factory in Lagos.

Earlier during a similar facility tour of Omatek factory and the corporate headquarters of Systemspecs also in Lagos, Olatunji had reiterated NITDA’s commitment to promoting indigenous entrepreneurs.

His words: “The ICT sector is no longer marginal in Nigeria and many African countries.

Investment in ICT has in the last decade become profound in both social and economic terms. In the context of the ‘information economy,’ Africa has gained significantly as ICT virtually drives a huge portion of national economies.”

In response at the Omatek factory, Seriki said: “We consider ourselves partners to government and believe the country potential for growth is still largely untapped and there’s plenty of room for more investments and investors.”

In addition to bringing together major economic and technology influencers from across the continent; the Africa Investment Forum in Dubai will help to further boost the investment value of most of the startups coming in from Africa and participating in this year’s Global Startup Movement at Gitex. Nigeria through the NITDA is promoting 16 startups.

Private Equity Investing in Africa Loses Shine Major private equity firms have seen a number of top management departures in Africa, individuals familiar with the matter told Reuters, as the funds grapple with investments hurt by a weak economy.

United States firm Carlyle , Standard Chartered and emerging market-focused Actis have all seen a change of top executives at their Africa funds, according to these six individuals.

Once seen as a beacon of growth, private equity firms expanded their business in the region just before the financial crash. A weak economy and falling currencies have now taken the gloss off a decade of ‘Africa rising’ optimism.

Some investments by these companies have struggled in the downturn. The changes at these groups, which pool the money of pension funds and international investors to buy, say, a stake in local companies, bring this decline into focus.

Carlyle’s Africa chief, Marlon Chigwende, confirmed that he had left. His departure in August followed a number of unsuccessful buyouts, including in Nigeria’s struggling Diamond Bank, two sources familiar with the matter said.

Chigwende told Reuters that investments had done well while he was in charge and that he was now setting up his own fund. Carlyle did not comment on the reasons for his departure.

The Africa chief for Actis, John van Wyk, is also due to leave, two sources familiar with the matter said, asking to remain anonymous because of the sensitivity of the matter.

Van Wyk did not respond to a request for comment.

The company’s global private equity head Peter Schmid, a veteran of African fund management, said he too would be leaving the group.

An Actis spokesman declined to comment.

Standard Chartered is parting ways with its Africa head, Peter Baird, as part of a plan to reduce its Africa team from 11 members to five, two industry sources said.

Standard Chartered’s private equity head, Joe Stevens, confirmed that the team was being “streamlined” but said it was not linked to performance.

A confidential investor prospectus, seen by Reuters, shows that Chigwende and two fund managers leaving Standard Chartered, Adrian Smith and Mayowa Ayodele, are planning to launch Arkana Partners, a new African private equity firm.

Smith and Ayodele declined to comment.

The changes come as a slump in oil has hit Africa hard, pushing countries such as South Africa, Nigeria and Angola into or close to recession and sending their currencies tumbling.

This change of fortune is

reflected in the private equity sector.

African private equity deals fell to $2.5 billion last year, compared with $8.1 billion in 2014, and fundraising is expected to drop this year, the African Private Equity and Venture Capital Association said.

Many of the hardest hit investments have been in Nigeria, where subdued oil prices have pushed Africa’s most populous country and biggest economy into recession.

That has seen the supply of dollars dry up and the local Naira currency weaken, cutting the value of foreign investments in the country.

Standard Chartered’s investments include Nigeria’s Union Bank (UBN.LG), which has halved in value this year.

Both Actis and Carlyle have suffered significant losses from stakes in Nigeria’s Diamond Bank Actis invested $134 million in Diamond Bank in 2007 and sold its stake in 2014 for an undisclosed amount, during which time the shares fell around 60 per cent.

Diamond’s Bank stock has slumped a further 90 percent in dollar terms since Carlyle invested $147 million in 2014.

Diamond Bank has been hammered by a shrinking economy, a plunging currency and acute foreign exchange shortages, all a consequence of the slump in the oil price.

T H I S D AY MONDAY SEPTEMBER 19, 2016

33

34

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

35

36

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

BUSINESS/MONEYGUIDE

Udoma: FG Desirous of Deepening other Sources of Forex Earnings Obinna Chima The federal government has expressed its resolve to deepen other sources of foreign exchange earnings in the country in other to boost non-oil activities.

The Minister of Budget and National Planning, Senator Udoma Udo Udoma, said this during an interview on Channels television on Friday.

“That is the problem we have and when we have alternative sources of foreign currency, we can then support manufacturing and anything else. Also we must promote export and reduce demand for foreign currency and increase supply.

“We are targeting to raise about $10 to $15 billion. We are looking for this because what we need to charge this economy is foreign currency.

Foreign currency shortage is largely responsible for were we are today. So we have to look for foreign currency and we have a plan already. We have a prepared bill because we want to fast track some of these processes in order to get the money,” he explained.

He revealed that the government has been able to spend one quarter of what it had intended to spend on capital projects, adding that the country recorded a N1 trillion loss in the first half of the year due to the unrest in the Niger Delta.

Udoma said: “The 2016 budget as far as the recurrent expenditure has been fully implemented. The emoluments have been paid in full. We have released all the money so that nobody at the federal level is being owed. All salaries have been released.

“We have also met all debt service in full. With regards to overheads, we have not met that in full, but we are almost there. The problem is capital expenditure. In the capital budget we planned to spend about N1.8 trillion but we have only spent about N400 billion.”

Shedding more light on the low implementation of the budget, he said: “In the first six months of the year, the revenue performance was N1 trillion less than we projected.

So given that rate, it means that at the end of the year,

it would be N2 trillion less.

There is no economy that can manage that without moving into where we are today.”

“The reason we are in a recession, I need people to understand that it has to do firstly with the oil price. But the oil price alone would not have put us in a recession. It went down from $110 to $30 per barrel in the first quarter but it has now gone up a bit to the 40s. We had anticipated that in the budget we had projected a price of $38.

“And at $38 we would have generated revenue and enough foreign currency to keep the economy on a fairly even kill and then next year we would start to grow. The performance this year would be flat then next year we would start to grow.”

When asked if there are specific policies to improve manufacturing sector in the country, he said: “The key thing is that for 30 to 40 years, we have been working with a structurally imbalanced economy. And this situation even if we resolve it, it would occur again unless we do a mental change.”

FCMB Partners Lagos onYouth Development In line with its commitment to continually empower youths, the First City Monument Bank (FCMB) Limited has partnered the Lagos State Government in empowering final year students in tertiary institutions within the state through the ‘Ready Set Work’ initiative.

The programme, which is an entrepreneurship and employability initiative of the Lagos State Ministry of Education was aimed at engaging final year students within the State to better equip the students with the critical skills and know how necessary to become employable and employers of labour themselves.

The initiative was borne out of the urgent need to further bridge the gap between skills and quality of graduates being produced annually and the

available jobs in the labour market.

Speaking at the graduation ceremony of the 2016 pioneer class of the ‘Ready set Work’ initiative, the Governor of Lagos State, Mr. Akinwunmi Ambode congratulated the graduates of the programme for their tenacity and zeal in engaging and successfully completing the programme.

He stated that the government under his administration had proactively instituted the programme to enable fresh graduates become job creators and value adding employees.

He also stated that the initiative also afforded successful students internship placement in prominent corporate organisations and links with major investors within the state as he urged students to avail themselves of this golden opportunity.

Also Speaking at the event, the Divisional Head, Human Resources and Strategy of First City Monument Bank (FCMB), Felicia Obozuwa, stated that: “FCMB is very proud to be part of the ‘Ready Set Work’ initiative as it is in line with the bank’s commitment and vision to continually empower and impact the lives of youths and undergraduates within the state through such worthy Initiative.”

She commended Lagos state for engaging in such worthy initiative.

“For us at FCMB, we will continue to provide resources necessary in ensuring that graduates and youths within the state and country at large are better empowered to contribute their quota in developing the state for today, tomorrow and the future” she added.

Udoma

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

JUNE 2016 Broad Money (M2)

21,684,965.22

-- Narrow Money (M1)

9,125,933.16

---- Currency Outside Banks

1,379,187.93

---- Demand Deposits

7,746,745.22

-- Quasi Money

12,559,032.07

Net Foreign Assets (NFA)

7,105,663.47

Net Domestic Assets(NDA)

14,579,301.76

-- Net Domestic Credit (NDC)

24,318,143.03

---- Credit to Government (Net)

2,893,190.01

---- Memo: Credit to Govt. (Net) less FMA

5,004,677.26

---- Memo: Fed. and Mirror Accounts (FMA)

-2,111,487.25

---- Credit to Private Sector (CPS)

21,424,953.01

--Other Assets Net

-9,738,841.27

Reserve Money (Base Money)

5,370,199.87

--Currency in Circulation

1,684,725.89

--Banks Reserves

3,685,473.98 • 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

Rosabon Offers Collateral-free Loan at 2.5%

Stanbic SIBond

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Nume Ekeghe

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

Nigeria’s financial services provider, Rosabon has announced the disbursement of N1.8billion in personal loans to its existing and potential clients.

The loan facility would be made available to both their new and existing clients for as low as 2.5 per cent.

According to a statement, the personal loans, which could be obtained without guarantor or collateral will see qualified individuals obtain as much as N3million to pay back in six or eight months.

However, to qualify, the individual must be more than twenty-one years of age and not more than 58 years. He/she must also be in paid employment, have a salary, pension account or tax identification.

Once an individual is

qualified by meeting the terms and conditions, loans can be accessed within 48 hours or less following documentation.

The Managing Director/ Chief Executive Officer of Rosabon Financial Services, Chukwuma Ochonogor said: “As a company, we have remained committed to driving access to financial services over the past two decades. This is no different from what we have been doing in respect to our commitment as one of Nigeria’s foremost financial service provider.

“More so, providing access to personal loans at this time has become even more imperative as a result of the current economic circumstance. It is no longer news that we are in a recession and that has serious implications for disposable incomes especially for most households. So this scheme

is geared towards providing Nigerians the financial liquidity they need to meet their financial needs at very friendly and ridiculously low interest rates.”

Also speaking, Head of Marketing, Chidimma Onyeokoro said: “At Rosabon, providing people’s financial needs remains our goal. We understand what the economy is at the moment which means that there is limited cash circulating in the economy.

But this does not mean that people should put their lives on hold. And that is why we are offering people these loans at these low rates.

“Over the past twenty-three years, this is what Rosabon has remained committed to, driving access to finance, helping people meet their financial obligations without going bankrupt, thereby touching lives in a very sustainable manner.”

ARM Money Market Fund

13.1030 (Yield % ) • Monetary Policy Rate - 13%

OPEC DAILY BASKET PRICE AS AT 16 SEPTEMBER 2016 The price of OPEC basket of fourteen crudes stood at $41.67 a barrel on Thursday, compared with $42.56 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

37

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

MARKET NEWS

Conoil Grows Profit to N1.6 Billion in Six Months Goddy Egene and Nosa Alekhuogie Conoil Plc last Friday released its half year (H1) financial results ended June 30, 2016, maintaining the positive performance recorded for the 2015 financial year. According to the results filed with the Nigerian Stock Exchange (NSE), Conoil Plc posted revenue of N39.514billion,

down by eight per cent from N43 billion in the corresponding period of 2015. Profit before tax rose by 196 per cent to N1.566billion, from N548million, while profit after tax grew by 190 per cent to N1.04billion, compared with earnings per share also rose from 52 kobo to 150 kobo, representing an increase of 190 per cent.

The company attributed the

T H E

results to innovative means of manufacturing and distributing products.

“The result shows that we outperformed our previous year both in the top-line and should exceed our bottom-line performance at the current run-rate.

The impressive performance followed the company’s innovative means of manufacturing and distributing products, huge

N I G E R I A N

financial investments in developing high-performance products and in the provision of services that matched and surpassed international standards,” the company said.

The performance surpassed the expectations of analysts given the volatility in the downstream sector of the oil industry and the nation’s economy.

Given the improved H1

STO C K

performance, capital market analysts are of the view that Conoil would end up with a higher dividend pay-out for its shareholders at the end of the current financial year.

After posting impressive results in 2015, the directors of Conoil Plc recommended a dividend N2.08 billion, translating to the 300 kobo per share on every 50 kobo ordinary

E XC H A N G E

share, compared with to 100 kobo paid in 2014.

The stock market has been reacting positively to the company’s 2015 financial performance, increasing demand for the equity of the petroleum products marketing firm. The increased demand has led to a capital appreciation of about 34 per cent in the last two weeks.

38

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

CITYSTRINGS

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

Fulani herdsmen take over FCT, Abuja

FCT and the Challenges of Cattle Grazing, Development What does it take to administer a fast growing Federal Capital Territory, Abuja, at this time of economic recession? Iyobosa Uwugiaren examines the challenges

S

ome critical minds asked recently when President Muhammadu Buhari would appoint the Minister of the Federal Capital Territory.

Mischievous question, some will say. But, it came at a time when many residents of the city were beginning to entertain fears over the suspected activities of the Fulani herdsmen whose businesses were sending frightening signals to residents. And many had asked if the nation’s seat of power had been converted into a “Federal Cattle Territory.”

To be sure, until recently, herdsmen had virtually taken over the major highways in Abuja, including residential areas and gardens; and ostensibly bolstered by the failure of the appropriate authorities to apply the big stick, the herdsmen had started making inroads into Aso Villa and around the business area of the FCT. Stunned residents and motorists were daily harassed and assaulted by the uncontrollable herdsmen. And like a resident said recently, they took over the city of Abuja like an “army of occupation.” During busy working hours, they obstructed the major highways and sometimes, attacked pedestrians, and with cow muck littering the roads.

Apart from the disgusting activities of the herdsmen, residents had started to express serious concerns about the environmental sanitation in a territory of 250 square kilometres- a city that many Nigerians and other residents feel very proud of.

Consequently, many residents had challenged the Minister of FCT, Muhammad Musa Bello, to rise up to the responsibilities of his plum office.

But then, could the minister be facing any challenge, especially at this period of economic recession? What is really going on?

At a forum organised recently by the FCT Chapter of the Nigeria Union of Journalists (NUJ), the minister admitted inheriting a city that had been “well-conceived, well-planned with first class infrastructure” that had grown rapidly over the last 30 years- growing at a rate of 20 per cent per annum, more than any other city in Africa.

“We met a city where facilities are grossly overstretched because they were meant to cater for a very much lower population than what we have now. Of course, we met a city where the planning and the concept initially envisaged by the founding fathers were gradually being eroded and being bypassed,” the minister stated.

“We met a city that was developing towards some level of chaos; chaos in service delivery, chaos in traffic management and some level of chaotic development in terms of buildings,

Until recently, herdsmen had virtually taken over the major highways in Abuja, including residential areas and gardens; and ostensibly bolstered by the failure of the appropriate authorities to apply the big stick, the herdsmen had started making inroads into Aso Villa and around the business area of the FCT

infrastructure and social facilities,’’ he added.

The minister added that he met a city where a number of the contractors had stopped work, laid off staff and abandoned projects and a city that was grappling with the general insecurity that was pervading some parts of the country.

However, he said that with an administrative structure that is one of the best in Nigeria, manned by “professionals of all callings”, people who were the first crop of civil servants that inhabited the city, he had been working assiduously with his colleagues to rise up to the challenges enveloping the city.

“First and foremost, we tried to encourage the contractors to come back to site. From the record, throughout 2015, there were no capital releases to the Ministry of the FCT until in December of 2015. So, basically, for 11 months, no payments were made,’’ the minister said. ‘’So, what we did was to first and foremost request for the extension of the budget by additional three months, so that we would be able to mobilise all available resources to pay the contractors. That’s why you will notice during the last few months, some semblance of construction activities have returned to the city.”

He added that construction of the roads is on-going, saying the essential part of the liability, especially for the smaller sized companies, were paid and encouraged to continue to provide the services that they were providing.

He continued: “We noticed also some improvements in the sanitation in the city.

While of course I will acknowledge that we are not there yet, but definitely, there have been some improvements and I think it is to the credit of my colleagues in the various departments that have done their work and also our ability to have paid the service contractors to be able to do as required.”

To be sure, the minister recently directed the

Abuja Environmental Protection Board (AEPB) and the FCT Task Team on Environment to, as a matter of urgency, get rid of herdsmen still grazing in the FCT. He described the act of grazing in the city centre as a “bizarre situation” and directed the two bodies to find a way of dealing with the situation.

He equally directed them to stop hawkers using pedestrian bridges in the territory for their commercial activities. The directives came as the minister also ordered any principal of government schools in Abuja who fails to achieve 50 per cent success in the 2017 WASSCE and NECO examination to honourably resign or risk being sacked.

Speaking at a meeting with school principals in the territory, the minister said that the 30 per cent success recorded in the 2016 WAEC and NECO in FCT schools was no longer acceptable. The minister, who was represented at the meeting by the FCT Permanent Secretary, Dr. Babatope Ajakaiye, insisted that either the students achieve at least 50 per cent in the next examination or the principals of the affected schools would be penalised.

The minister warned that the FCT Administration would no longer accept excuses of poor infrastructure or inadequate teachers being given as reasons for the poor performance, insisting that school principals must do everything possible to ensure that the situation changed.

He said that it was unthinkable that the FCT, with the largest concentration of elites and which should be setting the pace for other states in terms of academic performance, was churning out mere 30 per cent success in very critical examinations as WAEC and NECO. “My mission is not to come and make you sad but the situation is bad and you know it, and we are ready to tackle it. But you must be up and doing too and that is why I said I must call all the principals and talk to you to do the

39

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

CITYSTRINGS

Minister of FCT, Muhammad Musa Bello

Apart from the disgusting activities of the herdsmen, residents had started to express serious concerns about the environmental sanitation in a territory of 250 square kilometres- a city that many Nigerians and other residents feel very proud of.

Consequently, many residents had challenged the Minister of FCT, Muhammad Musa Bello, to rise up to the responsibilities of his plum office

right things. That is what this administration is about,’’ Bello added.

“We are ready to put the right things in place. We are ready to work for Nigeria. But we want people that will join us to do this.

That is why when you come to FCT today, it is not business as usual, and we want to send that message down to our institutions.”

Bello, who also visited a pedestrian bridge in Ludge recently, warned that hawking and other related activities were not acceptable on the pedestrian bridges across the territory, and called for stern enforcement. He told the AEPB and the taskforce team that his administration was not prepared to take excuses anymore on why the bridges were being used for illegal activities.

His reasons: “These expressways are the gateway into the Federal Capital City and the seat of power of the Federal Republic of Nigeria, and therefore everything must be done to keep Abuja clean from all environmental nuisances in line with the vision of its founding fathers.”

The whole idea, according to the minister, was to wake up the city to go back to what it used to be, saying he had to do that against the backdrop of serious funding challenges, which is making his administration prioritise its objectives and obligations and above all, appreciate the need to be prudent managers of resources. ‘’This is the Abuja that we have seen and of course we spend most of the time in the city because when you go to battle, you have to choose your battle line. If you say you have to go in all fronts, you can’t do anything and that’s why we decided to concentrate on the city centre itself and gradually expand to reach out to the Area Councils and the satellite towns,’’

Cattle at the Federal Secretariat, Abuja

FCT, Abuja...a sight to behold

he further stated.

“And I am happy this is now very visible because we have a crop of very dedicated young men and women manning the Area Councils, starting from Abaji, Kwali, Gwagwalada, Kuje, AMAC and Bwari.”

The minister said his administration had also been working hard to rid the city of nuisances: street trading, street begging and some of the things that are not supposed to be seen in a city of FCT standard.

According to him, “Particularly, most of you would have noticed on Ahmadu Bello Way as you drive close to Apo, that road is now much freer because all those institutions that decided to change the entrances of their properties and premises against what was originally planned were compelled to reverse to what it was because that is a very important artery into the city that is meant to be free at all times.”

Asked what he has done or doing to strengthen institutions in the FCT, the minister said that his action would not manifest itself immediately.

For instance, he said that his administration had tried to instil the rule of law in what is done in all the offices and all the agencies of the FCT, saying this is something people cannot feel or see physically, but very fundamental if an efficient city and an efficient community and society must be administered in line with the rule of law.

“As I mentioned to you, Abuja is the only city in the entire federation that is a creation of law. So, for every activity, there is a law guiding it. But where we got it wrong over the years was when we jettisoned these things and then we weakened the institutions,” he told THISDAY. “So, what we have been trying to revive and we will continue to do, is to strengthen these institutions to give the technocrats and the specialists in these institutions the confidence to be able to say no to any political appointee when things are being done wrongly.

“Or else, year in year out, ministers will

come and go and at the end of the day, we always cry and fall back and reflect on the fact that things are being done wrongly.”

Bello said his vision as FCT Minister is to have a day when the minister or the Permanent Secretary of FCT would tell his/her Director to give him a piece of land in a beautiful valley and he will say no.

“A lot of people will tell you that we have been very prudent with managing finances and that is how it’s supposed to be. Every naira should work 100 per cent, not 10 per cent or 20 per cent. These are some of the things that are invisible that we are working towards in the administration, which of course will take time to manifest,” he further told THISDAY. On what is being done to ease doing business in Abuja, the minister said that for example, a lot of building plans are now being approved on time. He said that even if they are not going to be approved, at least, within a certain period of time, a person is being informed as to why his/her plan is not being approved.

He continue: “These are all the ways we are trying to enhance how business of government is done because at the end of the day, government is really to provide services and as a nation, especially in the FCT, we want to key into this Federal Government’s focus and objective of trying to make Nigeria move 20 points up on the World Bank index of doing business.

And I think we can do that by improving on all our processes and that’s what we are trying to do.”

He promised that his administration would complete the Abuja Light Rail project, which is 70 per cent done and has very critical components that include the rolling stocks, the locomotives, the signalling system and the entire management structure that will run the system.

According to the minister, “There is also the all-important Apo-Karshi Road, which we are working on, and which if completed will bring relief to motorists coming into the city from the Nyanya-Mararaba axis. These are all in progress and we do hope to complete all.

“Abuja has enormous water reservoir. The water treatment plant at the lower Usuma Dam has been projected to meet the needs of this city even at the rate of 20 per cent growth for the next 10 years. The water is there, but as it is now, from our analysis, less than 60 per cent of the city gets water.

“We are working to complete the critical infrastructure linking the various tanks constructed and under construction in the network of the city. So, for us, that’s a very important project that of course was commenced many years ago and has been on-going, but we intend to complete that.”

The easy-going minister reminded the people that they are in the regime of “change”, saying that a lot of things they were used to in the past in running public institutions, the policies, the paraphernalia and all related issues, had never worked.

He said, “When I arrive for public engagements or appointments on time, people applaud me. But for me, it is not an issue. For me, 12 is 12 and that’s why if you check my public outings, I always go there in time.

“On a few occasions, the protocol people will tell me, sir you better stay at home, they are not ready. But I say no I will go there and by the time you go there on time, everybody knows you will come on time and everybody goes on time.”

Tasking the FCT’s residents, the minister said that most of them had left the protection of the territory in the hands of government alone, saying every citizen of Abuja should have a passion for the city.

“I’m saying so because the rate of vandalisation of public assets and properties in this city is amazing and certain criminal activities, quite frankly are just unique to us Nigerians,” he said.

The minister added that traffic lights, streetlights and electric cables are being vandalised, while the new Abuja light rail system under construction had also faced vandalism. These are all fundamental issues that a minister of the FCT cannot handle alone,” he said.

40

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

41

42

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

43

44

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

45

46

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

47

48

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

49

50

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

51

52

MONDAY SEPTEMBER 19, 2016 T H I S D AY

53

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

Nigeria’s top 50 stocks based on market fundamentals

16-Sep-16

15-Sep-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

Table 1 Market Statistics Mkt Indicators

01 Dangote Cement Plc

176.06

176.00

0.03%

3,000,151,733,724.30

9.56

18.41

5.54

4.54%

4.41

02 Nigerian Breweries Plc

145.00

141.63

2.38%

1,149,719,628,760.00

4.50

32.25

3.84

2.48%

7.06

03 Guaranty Trust Bank Plc

27.05

26.50

2.08%

796,113,398,009.20

4.20

6.44

2.22

6.54%

1.76

826.00

825.00

0.12%

654,734,064,152.00

19.41

42.56

3.95

3.51%

18.61

05 Zenith Bank Plc

14.50

14.53

-0.21%

455,249,159,897.00

3.10

4.68

1.09

12.41%

0.73

06 Lafarge Africa Plc

Table 3 Top 5 Gainers

56.00

56.05

-0.09%

255,074,501,360.00

-6.71

-8.35

1.15

5.36%

1.82

Stock

07 Ecobank Transnational Incorporated

11.50

11.50

0.00%

211,019,838,972.50

0.23

50.05

0.39

5.39%

0.35

08 Forte Oil Plc.

161.01

165.00

-2.42%

209,712,482,394.03

4.22

38.15

1.42

2.14%

4.89

09 Seplat Petroleum Dev. Co. Ltd

326.00

325.00

0.31%

180,379,162,038.00 -14.43

-22.59

1.93

4.88%

0.48

10 Presco Plc

45.00

45.00

0.00%

178,671,467,025.00

0.54

83.90

2.57

2.89%

4.37

11 Unilever Nigeria Plc

46.00

45.15

1.88%

174,031,627,500.00

0.46

99.48

2.86

0.11%

19.54

5.56

5.57

-0.18%

160,839,522,268.36

2.56

2.17

0.47

9.89%

0.38

13 Stanbic IBTC Holdings Plc

15.50

15.50

0.00%

155,000,000,000.00

2.04

7.61

1.31

0.65%

1.38

14 United Bank for Africa Plc

4.20

4.21

-0.24%

152,374,010,552.40

1.66

2.53

0.48

14.29%

0.37

15 Guinness Nig Plc

100.01

100.00

0.01%

150,603,877,681.88

3.70

27.05

1.33

0.00%

3.39

16 FBN Holdings Plc

2.95

3.01

-1.99%

105,891,113,736.40

0.30

9.68

0.21

5.08%

0.17

17 7-Up Bottling Comp. Plc

146.45

146.45

0.00%

93,814,458,661.35

3.75

39.07

1.05

1.50%

3.64

18 Total Nigeria Plc

250.00

250.00

0.00%

84,880,459,250.00

31.13

8.03

0.35

5.60%

4.02

19 Dangote Sugar Refinery Plc

6.58

6.40

2.81%

78,960,000,000.00

1.05

6.26

0.66

7.60%

1.33

20 International Breweries Plc

20.00

19.30

3.63%

65,884,985,600.00

0.17

114.65

2.64

1.25%

5.34

5.10

5.06

0.79%

61,376,556,359.40

-3.46

-1.47

0.33

14.71%

0.44

170.00

170.06

-0.04%

61,301,194,540.00

17.69

9.61

0.74

4.24%

3.57

23 Julius Berger Nig. Plc

39.44

39.44

0.00%

52,060,800,000.00

0.24

162.91

0.50

3.80%

2.32

24 Flour Mills Nig. Plc

19.09

19.09

0.00%

50,096,687,899.83

6.81

2.80

0.13

10.48%

0.50

25 U A C N Plc

21.00

21.00

0.00%

40,338,152,127.00

2.44

8.61

0.56

4.76%

0.55

04 Nestle Nigeria Plc

12 Access Bank Plc

21 Oando Plc 22 Mobil Oil Nig Plc

26 Transnational Corporation Of Nigeria Plc

1.04

1.07

-2.80%

40,269,837,322.00

-0.37

-2.79

0.89

0.00%

0.53

36.00

36.00

0.00%

34,340,760,000.00

4.60

7.83

2.79

0.28%

2.21

28 Sterling Bank Plc

1.01

1.01

0.00%

29,078,322,307.26

0.31

3.27

0.28

8.91%

0.35

29 Diamond Bank Plc

1.15

1.15

0.00%

26,634,447,313.20

0.11

10.42

0.13

0.00%

0.12

30 Cadbury Nigeria Plc

13.80

13.80

0.00%

25,919,188,152.00

0.83

16.71

0.94

9.42%

2.08

31 Fidelity Bank Plc

0.89

0.88

1.14%

25,776,701,265.88

0.39

2.28

0.18

17.98%

0.14

32 Wema Bank Plc

0.63

0.63

0.00%

24,301,913,631.03

0.06

9.99

0.49

0.00%

0.52

33 Glaxo Smithkline Consumer Nig. Plc

19.60

19.60

0.00%

23,439,179,164.80

-2.54

-7.72

0.80

1.53%

2.57

34 Custodian And Allied Insurance Plc

3.94

3.95

-0.25%

23,174,544,928.30

0.76

5.19

0.69

3.55%

0.83

33.00

32.78

0.67%

23,100,000,000.00

2.36

13.99

3.33

3.48%

15.82

36 National Salt Co. Nig. Plc

8.20

8.10

1.23%

21,725,394,699.60

0.89

9.26

1.20

6.71%

3.15

37 Mansard Insurance Plc

2.05

2.08

-1.44%

21,525,000,000.00

0.27

7.55

1.12

2.44%

1.02

38 FCMB Group Plc

1.00

1.00

0.00%

19,802,710,781.00

0.61

1.63

0.12

10.00%

0.11

39 PZ Cussons Nigeria Plc

19.50

18.65

4.56%

19,500,000,000.00

4.14

4.71

1.47

0.51%

0.58

40 Honeywell Flour Mill Plc

1.41

1.35

4.44%

11,181,578,697.78

-0.40

-3.49

0.23

11.35%

0.68

41 Continental Reinsurance Plc

0.97

1.00

-3.00%

10,061,561,982.64

0.33

2.95

0.49

12.37%

0.52

42 Skye Bank Plc

0.63

0.63

0.00%

8,744,589,888.30

-2.93

-0.21

0.05

47.62%

0.08

43 Unity Bank Plc

0.70

0.67

4.48%

8,182,536,559.40

0.54

1.29

0.13

0.00%

0.10

44 Cement Co. Of North.Nig. Plc

6.00

6.00

0.00%

7,540,066,596.00

0.44

13.54

0.68

1.67%

0.70

45 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,126.00

0.11

4.62

0.88

6.00%

0.43

46 UACN Property Development Co. Limited

3.40

3.40

0.00%

5,843,749,983.00

-0.05

-65.21

1.73

20.59%

0.16

47 Resort Savings & Loans Plc

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

48 Nigerian Aviation Handling Company Plc

3.18

3.18

0.00%

5,165,015,625.00

0.15

20.62

0.64

6.29%

0.83

49 AIICO Insurance Plc

0.62

0.65

-4.62%

4,296,726,777.60

0.26

2.38

0.13

8.06%

0.45

50 Fidson Healthcare Plc

1.61

1.69

-4.73%

2,415,000,000.00

0.31

5.25

0.36

3.11%

0.38

27 Okomu Oil Palm Plc

35 Cap Plc

TOTAL

9,012,653,943,511.44

TOTAL MARKET CAP

9,569,547,429,473.33

% OF MARKET CAP Annotation - MA* = Simple Moving Average

94.18%

NSE All Share Index NSE Market Cap (N'Trillion) Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Open 15-Sep-16

Close 16-Sep-16

Change %

27,725.40 9.52

27,858.48 9.57

0.48% 0.48%

115.18 8.97

115.75 9.01

0.50% 0.50%

Open Close Change % 15-Sep-16 16-Sep-16

PZ Cussons Nigeria Plc Unity Bank Plc Honeywell Flour Mill Plc International Breweries Plc Dangote Sugar Refinery Plc

18.65 0.67 1.35 19.30 6.40

19.50 0.70 1.41 20.00 6.58

4.56% 4.48% 4.44% 3.63% 2.81%

Table 4 Top 5 Losers Stock

Open Close Change % 15-Sep-16 16-Sep-16

Fidson Healthcare Plc AIICO Insurance Plc Continental Reinsurance Plc Transnational Corporation Of Nigeria Plc Forte Oil Plc.

1.69 0.65 1.00 1.07

1.61 0.62 0.97 1.04

-4.73% -4.62% -3.00% -2.80%

165.00

161.01

-2.42%

Market records 6-day gaining streak as ASI gains 0.50% Market pulse on the Nigerian Stock Exchange (NSE) today – Friday, September 16th, 2016 ended on a positive note as the market maintained an unhurried northward trend. This was further highlighted by positive performances from the NSE Sub sectors: Banking and Consumer Goods (Save Insurance and Oil & Gas). Trading activities increased in volume as 228.93 million shares worth N2.11 billion in 3,617 deals exchanged hands today.

This is an increase from the 200.29 million shares worth N1.60 billion in 3,257 deals which exchanged on Thursday. Topping in volume terms was FBN Holdings Plc, FCMB Group Plc and United Bank for Africa Plc while Guaranty Trust Bank Plc and Nigerian Breweries Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed positive with a 0.48% (+133.08) increase to close at 27,858.48 from 27,725.40 the previous trading day. Market Capitalization appreciated in tandem to N9.57 trillion from N9.52 trillion of prior trading day. Similarly, the Thisday BGL 50 Index followed suit with an increase of 0.50% to close at 115.75from 115.18 recorded at the end of the previous trading day, while its market capitalization stood at N9.01 trillion from N8.97 trillion of the previous trading day.

A total number of 25 stocks gained on the bourse today while 16 stocks declined, 58 leaving stocks unchanged. PZ Cussons Nigeria Plc emerged as the day’s toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 4.56% to close at N19.50 per share. It was followed

by Unity Bank Plc with a gain of 4.48% to close at N0.70 per share. Others on the gainers list include: Honeywell Flour Mill Plc, International Breweries Plc and Dangote Sugar Refinery Plc, while on the decliners’ list; Fidson Healthcare Plc led with a loss of 4.73% to close at N1.61 per share. It was followed by AIICO Insurance Plc with a loss of 4.62% to close at N0.62 per share. Others on the decliners list include: Continental Reinsurance Plc, Transnational Corporation Of Nigeria Plc and Forte Oil Plc.

REQUIRED DISCLOSURE This report has been prepared by BGL Plc. BGL Plc does and seeks to do business with companies covered in its research reports. As a result, the firm may have a conflict of interest that could affect the objectivity of this report. Investors should use this report as one of many other factors in making their investment decisions.

For more details go to www.thisdaylive.com

54

MONDAY SEPTEMBER 19, 2016 T H I S D AY

T H I S D AY MONDAY SEPTEMBER 19, 2016

55

56

MONDAY SEPTEMBER 19, 2016 T H I S D AY

57

MONDAY SEPTEMBER 19, 2016 • T H I S D AY

INTERNATIONAL 29 Injured in New York ‘Intentional’ Explosion

email:foreigndesk@thisdaylive.com

An explosion rocked the bustling Chelsea district of Manhattan on Saturday night, injuring at least 29 people in what authorities described as a deliberate, criminal act, while saying investigators had found no evidence of a“terror connection.”

New York City Mayor Bill de Blasio and other city officials said investigators had ruled out a gas leak as the cause of the blast, but they stopped short of calling it a bombing and declined to specify precisely what they believed may have triggered the explosion. Neha Jain, 24, who lives in the neighborhood, said she was sitting at home watching a movie when she heard a huge boom and everything shook.

“Pictures on my wall fell, the window curtain came flying as if there was a big gush of wind,”she told Reuters.“Then we could smell smoke. We went downstairs to see what happened, and firemen immediately told us to go back.”

Police said a sweep of the neighborhood following the blast had turned up a possible “secondary device” four blocks away consisting of a pressure cooker with wires attached to it and connected to a cell phone.

Residents living nearby were advised to stay away from windows facing the street as a precaution, and the item was later

safely moved to a police firing range for further examination, officer Christopher Pisano said.

As of Sunday morning, police were still seeking to determine whether the item was an explosive and had not detonated it, said NewYork police Lieutenant Thomas Antonetti.

Pressure cookers packed with explosives and detonated with timing devices were used by two Massachusetts brothers in the 2013 Boston Marathon bombing that killed three people and wounded more than 260.

The latest blast came less than a week after law enforcement agencies around the country were on heightened alert for the 15th anniversary of the Sept.

11, 2001, airline-hijacking attacks that killed nearly 3,000 Americans in New York, Washington and Pennsylvania.

Remaining circumspect about the exact nature of the explosion in Chelsea, De Blasio said early indications were that it was “an intentional act.”He added that the site of the blast, outside on a major thoroughfare in the fashionable West Side Manhattan neighborhood, was being treated as a crime scene.

“There is no evidence at this point of a terror connection,” the mayor said at a news conference about three hours after the blast.

“There is no specific and credible

threat against New York City at this point in time from any terror organization.”

The mayor also said investigators did not believe there was any link to a pipe bomb that exploded earlier on Saturday in the New Jersey beach town of Seaside Park. No injuries were reported in that blast, from a device planted in a plastic trash can along the route of a charity foot race.

But a U.S. official said that a Joint Terrorism Task Force, an interagency group of federal, state and local officials, was called to investigate the Chelsea blast, suggesting authorities have not ruled out the possibility of a terror connection.

A joint task force also took the lead in investigating the New Jersey incident. A law enforcement official told Reuters an initial investigation suggested the Chelsea explosion occurred in a dumpster. CNN cited law enforcement sources as saying they believed an improvised explosive device caused the blast.

President Barack Obama, attending a congressional dinner in Washington,“has been apprised of the explosion in NewYork City, the cause of which remains under investigation,” a White House official said.

58

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

NEWSXTRA

Markets Watch CBN for Direction as MPC Meets Obinna Chima

As the Central Bank of Nigeria (CBN) commences its 252nd Monetary Policy Committee (MPC) meeting today, investors would been looking up to the committee for favourable rate decisions that would spur investments as well as stimulate the country’s ailing economy.

The two-day meeting which would be the fifth to be held this year, holds in Abuja and members of the committee would determine whether or not to adjust upward or downward, the benchmark Monetary Policy Rate (MPR), which was raised to 14 per cent from 12 per cent, and the Cash Reserve Ratio (CRR) and Liquidity Ratio (LR) which were both retained at 22.50 per cent and 30 per cent respectively.

The Nigerian economy is in recession. The National Bureau of Statistics (NBS) recently revealed that the country’s gross domestic

product (GDP) contracted by 2.06 per cent in the second quarter of 2016, compared to the negative growth of 0.36 per cent recorded in the first quarter of 2016.

The country’s external reserves stood at $24.880 billion as at last Thursday. The National Bureau of Statistics (NBS) last week revealed that the Consumer Price Index (CPI) increased to 17.6 per cent (yearon-year) in August, from the 17.1 per cent recorded in July.

Also, national unemployment rate rose to 13.3 per cent in the second quarter of 2016, from 12.1 in the first quarter of 2016.

Since the CBN introduced a flexible exchange rate regime to allow the currency to trade freely on the interbank forex market, dollar liquidity has remained a challenge. Owing to this, the central bank has remained the major supplier of forex in the market. The naira closed at N425 to the dollar on the parallel market on

Falana Faults NBA’s Campaign to Strip EFCC of Prosecutorial Powers Gboyega Akinsanmi

A human rights lawyer, Mr. Femi Falana, yesterday faulted a proposal by the leadership of the Nigeria Bar Association (NBA) that Economic and Financial Crimes Commission (EFCC) should be stripped of its prosecutorial powers.

Falana, a Senior Advocate of Nigeria (SAN), also lamented the regressive approach of the state and local governments to the fight against corruption and corrupt people in the country.

He rejected the proposal in a statement he personally signed, arguing that the campaign “to have the EFCC divested of its prosecutorial powers is essentially designed to weaken it.”

At its 56th annual general conference held in Port-Harcourt, Rivers State, between August 21 and 26, the NBA President, Mr. Abubakar Balarabe Mahmoud, had demanded that the EFCC be stripped of prosecutorial powers and limited to investigation.

Rather than allowing the antigraft commission to prosecute cases it investigated, the NBA president had canvassed the establishment of an independent prosecution agency to prosecute cases investigated by the EFCC. In a statement he issued yesterday, however, Falana x-rayed diverse battles waged to weaken the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the EFCC by some members of the NBA. In Nigeria, he acknowledged that the federal and state ministries of justice “prosecute cases which have been investigated by the Nigeria Police. But in the prosecution of such cases, it is always a herculean task to secure the attendance of police prosecutors as they may have been transferred when they are required to give evidence

in criminal courts.”

He said many cases “are usually struck out for want of diligent prosecution. Based on the frustrations encountered by various ministries of justice, the parliament decided to warehouse the investigation and prosecution departments of several government agencies including the EFCC. “Since the EFCC has secured more convictions than the other agencies which combine investigative and prosecutorial powers, the campaign to have it divested of prosecutorial powers is essentially designed to weaken it,” the human rights lawyer explained.

He, however, argued that the campaign to strip the EFCC of its prosecutorial power would have been extended “to other agencies clothed with powers to investigate and prosecute criminal cases like the ICPC, Nigeria Police, the armed forces, EFCC, National Food and Drugs Administration Commission, National Agency for the Prohibition of Trafficking in Persons, Nigeria Customs Service, Federal Road Safety Commission, National Deposit Insurance Corporation and Nigeria Drug Law Enforcement Agency.”

He, therefore, noted that the renewed campaign against the EFCC “is not unconnected with its temerity to charge some senior counsel to court for alleged corrupt practices. In a demonstration of solidarity, the NBA has mobilised scores of lawyers to defend the accused persons.”

He lamented the regressive approach of the state and local governments to the fight against corruption and corrupt leaders, noting that the federal, state and local governments “have joint responsibility to fight the menace of corruption and abuse of office.”

Friday, while on the interbank forex market, the spot rate of the naira closed at N308.69 to the dollar on Friday.

In the same vein, Standard & Poor’s (S&P), one of the world’s leading index providers and independent credit ratings has downgraded Nigeria’s rating further from ‘B+’ to ‘B/B’. The agency stated in its latest rating on the country that Nigeria’s economy had weakened more than expected owing to a restrictive foreign exchange regime, a marked contraction in oil production, and delayed fiscal stimulus.

The Organisation of the Petroleum Exporting Countries (OPEC) asserted that the trend of the past years’ moderate global growth was likely to continue in both 2016 and 2017. The OPEC Oil Market Report for September 2016 therefore revised down its 2016 global growth forecast to 2.9 per cent, from three per cent in the previous assessment.

Therefore, considering these economic data, analysts at FSDH Merchant Bank Limited,

anticipated that the MPC members would resolve to hold rates.

They held the opinion that the current economic recession does not support an increase in rates, adding that instead it supports rate cut to boost output.

“On the other hand, the rising inflation rate and weak currency do not support rate cut but a rate increase. However, given the stagflation the country faces at the moment, maintaining rates at the current level may be the best option.

“We expect the MPC to continue to use the open market operations (OMO) to influence yields to achieve positive real yields on fixed income securities. The weak global economic growth outlook portends a downward pressure on oil prices, which will mean additional pressure on the value of the naira. Thus, a tight monetary policy is an appropriate response to mitigate the negative impact on the Nigerian economy,” FSDH Merchant Bank analysts stated.

Also, Afrinvest West Africa Limited pointed out that with economic growth faltering, inflation spiking, forex rates diverging and increasing downside risk to financial stability, the challenge before monetary policy continues to be how to achieve a balancing act amongst competing policy objectives.

Afrinvest added: “Whilst we believe the current recessionary shock conventionally calls for a more accommodative fiscal and monetary policy alongside structural reforms to jumpstart growth, we think the MPC will likely not take this path given that fiscal, forex liquidity and terms of trade realities are constraining policy options.

“Also, by tightening at the last meeting, the MPC Crossed a Rubicon and to backtrack yet again will jeopardise efforts at ensuring policy consistency and restoring credibility. Thus, we expect the MPC to maintain status quo on policy rates and wait on impacts of fiscal stimulus, talks on reaching a détente with Niger-Delta

militants and full implementation of recent forex reforms.”

Also, commenting on the move by the federal government to raise $1 billion from Eurobonds by mid-December and also borrow externally, Johannesburg-based sub-Saharan Africa Economist at Renaissance Capital (RenCap), Yvonne Mhango stated in a note at the weekend, that she expect the impact of the foreign loans on the country’s FX reserves (and by implication the naira) to be very small, probably negligible. However, she expects its impact on the government’s capital expenditure spending, and by implication growth, to be more meaningful.

In addition, the presidency announced earlier this month that it had approved plans to borrow externally and the plan was awaiting parliamentary approval. The government plans to borrow from the World Bank, the African Development Bank, Japan International Co-operation Agency, and Export-Import Bank of China.

WELCOME SIR

R-L: President Muhammadu Buhari; Governor of Zamfara State, Abubakar Yari; and his counterpart from Lagos State Akinwunmi Ambode, as the president arrived New York ahead of the 71st Session of the United Nations General Assembly (UNGA 71)...yesterday

NAF Jets Bombard Boko Haram Locations in Northern Borno Troops rescue 43 persons, recover 300 cows from terrorists in Mafa Senator Iroegbu in Abuja The Nigerian Air Force (NAF) has in continuation of its efforts in clearing up the remnants of the Boko Haram terrorists, conducted several air strikes at suspected terrorists’ locations on the outskirts of Tumbin Gini and Tumbin Kayewa northern part of Borno State.

The Director of Public Relations and Information (DOPRI), Group Captain Ayodele Famuyiwa, in a statement yesterday, said the air strikes on Friday, September 16, 2016, were as a result of ground based intelligence and successive Intelligence Surveillance Reconnaissance reports obtained from several missions flown by NAF

platforms.

Famuyiwa noted that in the video released by the NAF, some of the terrorists could be seen at one of the rendezvous where they were believed to be holding a high-level meeting when NAF jets were scrambled to hit the locations.

He disclosed that a post-strike battle damage assessment of the strikes revealed that the rendezvous was badly damaged with many casualties while those far from the vicinity could be seen scrambling to safety.

The DOPRI listed the aircrafts involved in the air strikes as the NAF F-7Ni and the Alpha jets.

“The air offensive of the NAF have continued to deny the terrorists any hiding place

and room for maneuver.

“This has enabled unhindered advance by the surface forces as part of the ongoing Operation GAMA AIKI,” he said.

Famuyiwa also recalled that the NAF had, in an earlier operation successfully conducted air strikes on BHT Camps at Tumbin Rego on August 26 which led to the death of many high ranking members of the group.

In a relatd development, the Director of Army Public Relations (DAPR), Col. Sani Usman, has also said the military rescued 43 abducted persons and recovered 500 cows from fleeing Boko Haram terrorists in Mafa in Borno State.

He stated that the military operation occurred yesterday

morning after eight suspected Boko Haram terrorists abducted some cattle rearers and livestock at gunpoint at Dalakalari general area, Mafa Local Government Area.

Usman disclosed that “some well meaning people informed the military who swung into action and pursued the terrorists.”

He said the terrorists sensing danger, ran and abandoned the livestock just before Panamri village and ran away.

“The troops were able to rescue 43 persons and 500 cows taken by the terrorists,” he stated.

Usman also said that the victims and the recovered cows have been handed over to the local authorities.

59

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

NEWSXTRA

Ibori Raises Allegations of Corruption against British Police Seeks independent probe Onyebuchi Ezigbo in Abuja The embattled former Governor of Delta State, Chief James Onaneife Ibori, has said there are revelations exposing some of the British police officers handling his case of engaging in corrupt practices and abuse of court processes.

He said the revelations showed that some of the police officers handling his prosecution engaged in corruption and abusage of the British court process such as disclosure rules guiding British court procedures.

In a statement issued yesterday by Head of James Ibori’s Media Office, Tony Eluemunor, the former governor who is seeking to quash his prison sentence in Britain, said the British National Crime Agency (NCA) has confirmed the allegations.

He that police officers, working within the elite Department for International Development funded Police Unit working with prosecutions were corrupt and had withheld substantial material from the defence teams.

“In a dramatic turn of events, the British National Crime Agency (NCA) has confirmed that Police officers, working within the elite Department for International Development funded Police Unit at the heart of the Ibori

and linked prosecutions were corrupt and had withheld substantial material from the defence teams,” Ibori’s aide said.

Eluemunor said it had become necessary for the Media Office to correct the wrong interpretation given to last week’s statement from the NCA, but which was misunderstood

by Nigerian media to mean that Ibori’s conviction was upheld by an Appeal Court.

Accordingly, some television stations had from last Friday through Saturday published the lie that a British court had upheld Ibori’s conviction.

“The NCA report simply confirmed explosive revelations of corruption and abusage of the British court process by the Prosecution Service, such as disclosure of rules guiding British court procedures. The report is a damning and fatal indictment on the prosecution of the Ibori and linked cases.

“The report however strangely concluded that the police officers’ corruption in the case and their withholding of material from the defence do not undermine the safety of the convictions. This surprising finding is at odds with the primary findings and so will now be tested to its fullest in the British courts.

“The question was whether there were malicious cover-ups and if the courts were misled; and the reports said yes, there

were. Thus, at best, the report is another cover-up for an earlier cover up, and an attempt at media manipulation. But the Crown Prosecution Service cannot fundamentally determine whether the conviction is safe or doomed; only the courts can so determine.

“Also, an independent investigation will be called to determine and document the police corruption and lack of due process levels for posterity.

“The two fundamental developments in relation to corruption and the withholding of material represent a tremendous victory for Bhadresh Gohil, Ibori’s former lawyer, who has long maintained police corruption and misconduct at the heart of these prosecutions. Gohil has taken the matter before the Appeal Courts,” he said.

Eluemunor added in his statement that even the report did not exonerate Detective Sergeant John McDonald, the officer at the heart of the Ibori investigation, from corrupt payments allegations.

He said: “The case demonstrates the truly shocking

behaviour of the British Crown Prosecution Service. Despite the over whelming evidence of corruption by British anticorruption officers, it continues to prosecute James Ibori and others when it now has in its possession evidence as to the source of his funds. It is believed that Ms. Saunders’s position is now untenable.

As the Director of Public Prosecutions, she has engineered a shocking cover-up.”

He further said surprisingly, the September 16, 2016 BBC report written by the Home Editor, Mark Easton, and entitled: ‘New evidence Supports Cover-up Claims in Ibori Case’ is totally different from what appeared in the Nigerian media.

Quoting the BBC report, Eluemunor said: “Claims that Scotland Yard and the Crown Prosecution Service (CPS) covered up evidence of police corruption in a high-profile money-laundering case have been given new weight after the discovery of a substantial number of documents suggesting an officer did take bribes.

“The previously undisclosed material came to light after the Director of Public Prosecutions, Alison Saunders, demanded a review into the conviction of, Ibori.

“The internal investigation followed allegations by defence lawyers that prosecutors had ‘willfully misled’ judges about the existence of evidence that could support corruption claims.

Now defence solicitors are being sent previously unseen documents discovered during the review.”

In a statement the CPS reveals how “the review team found material to support the assertion that a police officer received payment in return for information.”

“The review team has now concluded that this material should have been disclosed to the defence and the process of disclosure to relevant parties is under way.

“Prosecutors had previously denied there was any undisclosed material to support the corruption allegations and the admission that considerable documentation exists and should have been

handed over, represents an embarrassing climb-down for the CPS. “Questions about the safety of the convictions emerged after a bundle of documents was sent to the authorities purporting to show that police had accepted bribes from private detectives hired

by Mr Ibori.

Ibori’s solicitor, Bhadresh Gohil, had sent the documents anonymously while he was in prison. He protests his innocence and claims he is a whistleblower exposing possible police corruption.

It was alleged that the officer heading the DfID-funded unit, DS John McDonald, received payments in return for providing information to Ibori about the case. He has always denied any wrongdoing.

The allegations were investigated by Scotland Yard’s Directorate of Professional Standards (DPS), which identified “no misconduct” and concluded the documents were forgeries.

Mr Gohil was subsequently charged with attempting to pervert the course of justice.

Budget Padding: SERAP Asks Court to Compel EFCC to Prosecute Dogara, Others As the National Assembly resumes tomorrow, a civil society organisation, Socio-Economic Rights and Accountability Project (SERAP), has asked the Federal High Court in Abuja for an order to compel the Economic and Financial Crimes Commission (EFCC) to investigate and prosecute allegations of budget padding and abuse of office levelled against the Speaker of the House of Representatives, Yakubu Dogara, as well as the Deputy Speaker, Yussuff Lasun; the Minority Leader, Leo Ogor; and the Chief Whip, Hassan Ado Doguwa.

The suit with number FHC/ABJ/CS/733/16 dated September 15, 2016, was filed on behalf of SERAP by its lawyer, Mr. Femi Falana (SAN).

It was filed pursuant to Order 34, Rules 1 (1) (A); 2, Rule 3 (1) and (2) (A), (B) and (C) of the Federal High Court Rules, 2009 and the inherent jurisdiction of the court.

SERAP argued that the suit was borne out of the fact that it is the statutory responsibility of the EFCC to investigate and prosecute financial crimes in Nigeria.

It stated that unless the reliefs it is seeking are granted, the EFCC would not investigate Dogara and other principal

officers of the House for grave financial and economic crimes.

It averred that the matter is presently generating a lot of public concern and discourse and is presently in the front burner of national discourse thus germane to Nigerians.

The rights group said by the nature of the case, it ought to be heard urgently, adding that it would be in the interest of justice to hear thematter expeditiously.

“Dogara, Lasun, Ogor, and Ado are not immune from investigation under the 1999 Constitution, even though the Speaker has been talking tough, saying that the EFCC cannot investigate him.

“By virtue of Section 6 of the EFCC Act, 2004, the EFCC is statutorily empowered to investigate and prosecute economic and financial crimes committed in Nigeria. The EFCC has failed, and or refused to investigate allegations of budget padding and abuse of office levelled against Lasun, Ogor, and Doguwa.

“By a letter dated July 26, 2016, and signed by SERAP’s Executive Director, Adetokunbo Mumuni, the group requested the EFCC to investigate allegations of budget padding and abuse of office levelled against the affected officers.'

75 HEARTY CHEERS

Speaker, House of Representatives, Hon. Yakubu Dogara (fourth left), cutting the birthday cake with the celebrant, Chief Alani Bankole (middle); with him are : Hon. Oluwole Oke (first left), Hon. Prestige Ossy (second left), Hon. Chuchu Onyema (third left), Hon. Mikky Kazzim (first right), Hon. John Agbonayinma (second right), Hon. Ballah Umar (third right) and former Speaker, House of Representatives, Hon. Dimeji Bankole (fourth right) during the 75th birthday celebration of former Speaker’s father in Abeokuta, Ogun State...weekend

Ex-militants Give 21-day Ultimatum over Unpaid Contract Fees Say refusal to pay N’Delta youths fuelling violence Emmanuel Addeh in Yenagoa Some ex-militants who accepted the federal government’s amnesty deal in 2009, have accused oil servicing firms operating in the Niger Delta of fuelling violence by their refusal to pay huge sums owed contractors and by extension numerous jobless youths in the region.

The group, which described its members as ‘ freedom fighters, in a petition to the National Security Adviser (NSA), MajGen. Babagana Monguno (rtd), yesterday stated that the situation was causing restiveness among the youths.

The Iduwini Volunteer Force (IVF) in the letter copied other

security agencies, therefore issued a three-week ultimatum to the management of one of the companies, owners of OML 88, Oriri Oil Field, to pay the contractors so they could settle their debts to the affected exmilitants.

“We have discovered very sadly and with utmost disbelief that the unending crisis in the Niger Delta areas can easily be traceable to the ungodly activities of these companies.

“Even local concerns who use their huge wealth and resources to fan the ember of violence and intimidate other indigenous contractors who render services to them,” it said in the letter signed by ‘Commander’ Johnson Biboye.

The ex-militants added that

having transmuted into a volunteer force, it would ensure that all forms of injustices meted on Niger Delta youths would not be tolerated.

“As our name implies, we have used our little resources and wide contacts within the Niger Delta area in helping to ensure that peace returns to the oil/gas region once again.

“It is in one of such moves that we discovered that an indigenous oil servicing firm with Exploration and Production License for OML 88, Oriri Oil Field, engaged the services of more than 12 indigenous contractors with a debt profile of over $10million and deliberately refused to pay them,” it added.

According to the IVF, “This

unconscionable and wicked act was meted out to these contractors despite the successful and qualitative execution of various projects.”

It added: “90 per cent of the workforce of these companies are not only indigenes of Niger Delta but as of today have been drafted into supporting nefarious activities that are adding to the insecurity in the Niger Delta region.

“We took this upon ourselves to make a case for these indigenous contractors, who have suffered deliberate frustration, believing that if they are paid, some of the young men who are now foot soldiers of several militant groups will have no cause to continue with such unholy alliance.”

60

MONDAY, SEPTEMBER 19, 2016 • T H I S D AY

NEWSXTRA

CPC Issues Ultimatum to Samsung over Recall of Galaxy Note 7 James Emejo in Abuja Following reports of explosion of dozens of Samsung Galaxy Note 7 while charging, the

Consumer Protection Council (CPC) has issued a sevenday ultimatum to Samsung Electronics West Africa Limited to provide information on the

Marriott International Debuts in Nigeria with Renaissance Hotel

The global luxury brand in hotel management, Marriot, will make its debut in sub-Saharan Africa next month with the grand opening of Renaissance Lagos Ikeja Hotel located at the Ikeja GRA, Lagos State.

The hotel, which is the first Marriot Hotel in sub-Africa, according to a statement, is an embodiment of luxury, high taste, class and safety displayed from the gate through the reception to the exquisite rooms.

In a rare feat, it also boasts of eight conference rooms of different capacities ranging from 10 to 500 comfortable seats.

Apart from the 155 tastefully furnished rooms of varying classes on nine floors, the hotel also boasts of boutique, all day dining restaurant; specialty steakhouse and outdoor terrace, spa, pool deck and events place among others.

The glamour of the assortment of marble-like

finishing on the floors and walls combined with a unique carport at the entrance will make lodging irresistible for guests, according to a Director of Projects of Avalon International, owners of the hotel, Mr. Ahmed Tajudeen.

He added that the suspended glass floor and glass bridge at the reception area is to create a unique class for a hotel that is first of its kind in Africa.

With an underground car park, security within the premises is reinforced starting with electronically controlled bollards at the gate, at the car park entrance and body scanners at the entrance to the reception area.

According to Tajudeen, the date for the opening ceremony of the hotel, strategically located on Isaac John street in the Ikeja GRA, scheduled for October, 2016 will be announced in the coming days.

full status of its compliance with the global directive of Samsung on the recall of the defective mobile phone.

CPC’s ultimatum, which came on the heels of recent global recall of the product following its defective battery, also demanded Samsung Electronics to furnish it with other measures the company may have taken to safeguard the safety and interest of the Nigerian consumer.

The council, in a letter to the company dated September 14, 2016, signed by its Director General, Mrs. Dupe Atoki, said “the attention of the council has been drawn to media reports indicating that the lithium-ion batteries for Samsung Galaxy Note 7 are prone to catching fire.”

The agency’s letter stated further that “the said faulty batteries have reportedly caused the phone to explode in 35

separate incidents, sometimes bursting into flames, damaging property and leaking dangerous chemicals.”

She expressed concern that “some Nigerian consumers may already have purchased the Samsung Galaxy Note 7 for personal or other uses.

She said:”You are, therefore, directed to, within seven days of the receipt of this letter, furnish the Council with information on the full status of your compliance with the global directive of Samsung to recall the Samsung Galaxy Note 7 forthwith, including other measures you may have taken to safeguard the safety and interest of Nigerian consumers in this respect.”

Atoki, further advised Nigerian consumers who may have purchased the Samsung Galaxy Note 7 to, as an interim measure, stop using the phone

forthwith.

According to her:”while awaiting the response of Samsung Electronics West Africa Limited in order to determine the number of affected consumers in Nigeria, there is an urgent need to avert whatever dangers that may be associated with the use of the Samsung Galaxy Note 7 in Nigeria.”

She added that in line with international best practices, the company should immediately issue a recall notice giving Nigerian consumers adequate information on the procedure for recall and the appropriate compensation being offered.

In a statement by CPC spokesman, Mr. Abioun Obimuyiwa, she urged the company to ensure that affected consumers either get a free replacement from Samsung, or a refund of their money, where necessary.

The Director General explained that Samsung had announced in the United States that consumers with Samsung Galaxy Note 7 can check whether or not their phones are affected and eligible for recall by entering the IMEI or serial number of their phone in a space provided on Samsung website, www.samsung.com/ us/note/recall/, saying that Nigerian consumers can avail themselves of that facility.

CPC is the apex consumer protection agency of the Federal Government of Nigeria established by the CPC Act Cap 25, LFN 2004 to, among others, educate Nigerian consumers, remove hazardous products from the market, provide redress to consumer complaints and ban the sale of products which do not comply with safety or health regulations.

Ooni to Chair YUF First Memorial Lecture The Ooni of Ife, Oba Adeyeye Ogunwusi, will be the special guest of honour at the first memorial lecture series of the Yoruba Unity Forum (YUF) organised in honour of the founding Chairperson, late Dr. Hannah Awolowo, at Chief Obafemi Awolowo Foundation Secretariat, 15, Lanre Awolokun Street, Gbagada Estate Phase II, Lagos State on September

20 by 10a.m. According to a statement signed and issued by the Secretary General of YUF, Senator Anthony Adefuye, “The lecture which is titled: ‘Eternal Sustenance of the Yoruba Language and Culture,’ will be delivered by Prof. Adebisi Afolayan under the auspices of the current Chairman of the forum, Rev. Bishop Gbonigi.”

SUPREME COURT JUDGMENT: TENSION IN KOGI AS POLICE BUILD UP SECURITY advancing to the last stage, so that is why we are at the Supreme Court. The judiciary is the ultimate hope for the common man.

“The framers of the constitution are aware that at every stage of the case, newer interpretations will come up.

We believe that the Supreme Court will look deeper into the case, particularly with the minority judgment.

“Whatever decision taken will deepen democracy as the case is novel; it will be a landmark judgment because we have confidence in the independence of the Supreme Court.”

However, the state Police Commissioner has warned that anybody who takes the law into his hand after the Supreme Court judgment would be dealt with accordingly.

The state Police Commissioner, Abdullahi Chafe, gave the warning while

speaking with THISDAY at the weekend on the preparation of the command as the Supreme Court delivers it judgment tomorrow.

He stressed that intelligent report reaching the command disclosed that some miscreant were planning to create crisis after the judgment.

According to the Commissioner of Police, his command was fully ready to deal with whoever disobeys the law, stressing that there will be no kind of public celebration by anybody or groups after the court judgment.

He also warned all political parties to caution their supporters against anything inimical to the growth and development of the state, stressing that Kogi State is greater than anybody.

“Police will not waste time in dealing with law breakers within the constitutional requirement,” he said.

KEEP THE AWARDS COMING

L-R: Acting Head, Transaction and Electronic Banking, Diamond Bank Plc, Sam Aneke; Head, Corporate Communications, Chioma Afe; Head, Business Development, Chizoma Okoli; Deputy Managing Director, Caroline Anyanwu; and Chief Financial Officer, Chiugo Ndubuisi, at the BUSINESSDAY Banking Award 2016 held in Lagos....recently

IPOB Declares Sit-at-home on Sept 23 David-Chyddy Eleke in Awka The Indigenous People of Biafra (IPOB) has set aside September 23, 2016 for its members worldwide to protest the continued detention of their leader, Nnamdi Kanu, and for the freedom of Biafra people.

A statement sent to THISDAY in Awka, Anambra State and signed by its Publicity Secretary, Emma Powerful, stated that protest is expected to hold worldwide, while areas declared to be Biafra land would only

observe a sit-at-home protest.

“The IPOB worldwide protest will take place in all the countries across the globe except in Biafra land and Nigeria where church services will be held.

“Every IPOB member and other Biafrans living in Nigeria and Biafra land will stay in their homes on that day.

“We also ask that all markets, schools, Banks, transport companies and manufacturing companies to close on same day in solidarity with the

overall objectives of the Biafra restoration process irrespective of your persuasion or affiliation.

“Again, we call on Okada riders, Keke drivers, Bus drivers, Luxurious bus Owners and drivers, The Nine Loaders (911 drivers and Owners) the National Union of Road Transport Workers (NURTW) and National Association of Transport Owners (NATO) are advised to withdraw their vehicles from the road on that day in solidarity with IPOB worldwide for the release our

leader, Kanu and for the total liberation of Biafra people,” the statement read.

The group also advised all its members and others to switch off their communication devices especially mobile phones on that day from 8a.m. to 4p.m. in solidarity.

This the group said would let the world know including communication companies, that Biafrans are serious towards the release of their leader, Kanu and the restoration of its sovereignty.

61

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

IMAGES

F

uneral service for foremost industrialist and community leader in Ikoro Ekiti, late High Chief Joshua Akanbi, the Eisaba of Ikoro Ekiti, was held on Saturday at the St. Michael’s Anglican Church, Ikoro Ekiti. Here are faces of personalities that graced the occasion

L-R: Former Deputy Governor of ekiti State, Prof. Modupe Adelabu; Chairman Nigerian ports Authority, Mr. Adesoye and wife

Mr. and Mrs. Runsewe

Wives of the Deceased

Children of the Deceased during thanksgiving

Mr Kayode Ojo (2nd right) and other deceased’s Children during church service

Former Ekiti State Governor, Otunba Niyi Adebayo

Pastor and Mrs. Adekunle Ojo

Retired Bishop of Akure Anglican Diocese, Most Reverend Michael Ipinmoye

High Chief and Mrs Adebomi Adeyeye at the event

Cross Section of Ikoro Ekiti High Chiefs

62

MONDAY SEPTEMBER 19, 2016 T H I S D AY

63

T H I S D AY • MONDAY, SEPTEMBER 19, 2016

MONDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

Ekweremadu Salutes Paralympic Contingent, Says Ability is in Mind As first batch of paralympians arrive Omololu Ogunmade in Abuja The Deputy Senate President, Senator Ike Ekweremadu, yesterday described the Nigerian contingent to the Rio Paralympics in Brazil as true heroes, whom he said gave their best to their fatherland.

He said with 12 medals, including two gold medals, and some world record-breaking performance, the team had not only put up its best performance ever by any Nigerian contingent to the paralympics, but had also shown that ability was in the mind.

Ekweremadu, in his congratulatory message to Team Nigeria signed by his Special Adviser, Media, Uche Anichukwu, called on other Nigerian athletes and national teams to emulate the exceptional spirit exhibited by the Paralympians.

He said: “I salute Team Nigeria for their patriotism and the sheer willpower exhibited. This will no doubt lift the spirit of the nation at this difficulty time. It is my hope that their compatriots who will fly the Nigerian flag at future competitions will imbibe their determination, for they have shown that ability is in the mind.It is also my hope that we learn the lesson as a nation to give everyone and every constituent part the opportunity to contribute to national development.”

While calling on both the federal government and Nigerians to accord the team a heroic reception and accordingly reward them, Ekweremadu reiterated the need for drastic and urgent steps to reposition the nation’s sports sector. He also emphasised the need to revive school sporting competitions with a view to grooming future champions.

In a related development the

MEDAL TABLE COUNTRIES China

G S B 107 81 51

Great Britain

64 39 44

Ukraine

41 37 39

United States

40 44 31

(17)Nigeria

8

2 2

first batch of athletes to the 2016 Paralympic Games in Rio returned to the country yesterday.

They were received by senior staff of the Ministry of Youth and Sports, members of the Supporters club, the sporting press, well wishers and family members.

At a brief reception held at the Nnamdi Azikwe International Airport, Abuja, the Acting Permanent Secretary and Director Enterprises Mr. Luka Jonathan Mangset thanked the athletes for representing and making Nigeria proud at the Paralympics.

Speaking on behalf of the Minister, Barrister Solomon Dalung, the acting Permanent Secretary promised that a bigger reception will be held for the team when all other members of Team Nigeria to the games return.

“On behalf of Mr President, Vice President and the Honorable Minister of Youth and Sports, the Permanent Secretary and all good people of Nigeria, I welcome you back to Nigeria.

We are celebrating you now because you have done this country proud. History was made with your glorious and victorious outing to the Rio 2016 Paralympics.

EPL RESULTS

Watford 3-1 Man Utd Palace 4-1 Stoke S’hampton 1-0 Swansea Tottenham 1-0 Sunderland

Lagos Organises Capacity Training in Basketball As part of efforts to teach the basics of coaching cum techniques of the game, the Lagos State Basketball Association (LSBA) is organising a four-day workshop from October 25 to 28 for coaches in schools and academies.

The training is staged in collaboration with Dynaspro with the aim of training the existing developmental Coaches as well as identifies new ones by evaluating their capability to handle children at their sensitive and formative ages.

For the chairman of LSBA, Babs Ogunade, Dynaspro would be partnering, while the association would provide technical and managerial support for the partnership.

“The LSBBA is saddled with the responsibility of developing the game in Lagos across gender lines.

The clinics and trainings we have had speaks for itself,

we are however not averse to partnerships and collaboration in improving capacity. We welcome inputs and partnerships from any well-meaning group, and in this case Dynaspro to partner and inject capacity building across all lines in the quest to teach and improve the game of basketball in Lagos State,” Ogunade said.

According to the Chief Executive Officer (CEO) of Dynaspro, Oluseyi Oyebode, among the objectives are; to ensure those saddle/to be saddled with the responsibility of impacting fundamental skills/ knowledge are trained, tested and certified.

He added that there would be appraisal for trainers in both theory and practical, while certificates and license would be issued to those that are successful based on the results.

Kehinde Paul celebrating his Men’s 72kg powerlifting gold feat in RIo

NPFL: Celebrations at the Cathedral as Rangers Reclaim Top Spot Bobby Clement netted twice in each half of the Match Day 36 fixture at the Nnamdi Azikiwe Stadium to return the Coal City club to the summit of the Nigeria Professional Football League (NPFL) log after rivals, Rivers United went down to a Christopher Waziri goal in Bauchi against Wikki Tourists.

As though there has been a premonition of what the Flying Antelopes will turn the season into, the Nnamdi Azikiwe Stadium was renamed the Cathedral at the start of the season and ‘worshipers’ have been trooping in like never seen since the shine went off the Rangers all white outfit. But Coach Imama Ampakabo and his young squad seem to have the right kind of

vim to return the sheen.

Sunshine Stars started the match in Enugu perhaps with an intent to curtail their hosts and they did just that for most of the first half until the last quarter when lanky Bobby Clement made his physical attributes count. Rangers thus climbed to 57 points, one point ahead of former leaders, Rivers United.

The ball bubbled inside the Akure Gunners box on the 37th minute and Clement pounced to score, picking his spot to put the Flying Antelopes ahead. Sunshine Stars looked like they switched plans from their defensive intent to offensive when they mounted pressure for the equalizer and on the 41st minute, Orji Kalu

handled the ball inside the box for a penalty. Dele Olorundare stepped forward but his effort was saved by goalkeeper Nana Bonsu.

Eight minutes after, Clement’s physique came in handy when he rose highest to head home a Chuka Egbuchulam cross. The rains poured down but Rangers held on for a win that may indeed be the turning point in their quest to break a 32-year title drought.

In Bauchi, Coach Stanley Eguma saw his match plan to take a point out of Bauchi succeed until the last 10 minutes. Festus Umana lifted the ball high across the Rivers United goal area and it was knocked down

by Abubakar Lawal for Waziri to finish and gift all three points to the

Bauchi Tourists that now moved two places up to the third position on 54 points.

FC IfeanyiUbah saw their unbeaten run stopped by a brace from Yaya Soumaila in Makurdi where Lobi Stars snatched all three points after Ismaila Gata pulled the Anambra Warriors level on 52nd minute from the penalty spot. Soumaila had put Lobi ahead, finishing off a Kingsley Eduwo assist on the 32nd minute and with the fans growing restive after Gata’s equalizer, the attacker popped up to restore the lead 18 minutes from regulation time. Lobi overtook Sunshine Stars to the fifth place with 52 points behind FC IfeanyiUbah that stepped down from 3rd place on 53 points.

17th NNPC/Chevron Tennis Clinic Ends in Grand Style After three weeks of training, the 2016 NNPC/Chevron Junior Tennis Clinic came to an exciting end last Saturday at the Lagos Lawn Tennis Club, Onikan with all the budding stars feeling fulfilled and set to hit the stardom in few years to come.

In an elaborate ceremony attended by tennis players, coaches, fans and top officials of the joint venture partner and sponsor, Chevron Nigeria Limited, the 100 players, who participated in the programme, gave the fans a great display of skills they gained during the programme before they

were rewarded with quality gift items by the sponsor.

Addressing the players after the event, the General Manager, Government and Public Affairs of Chevron Nigeria Limited, Deji Haastrup said the oil firm was impressed with the players performance and attitude during the clinic, coordinated by a former Chairman of the Nigeria Cricket Association, Chris Enahoro.

While acknowledging the support of the various organisations and individual, who have jointly contributed to the success of the tennis programme, Mr. Haastrup

commended Enahoro for talent discovery project which he hopes in the next few years will transform into star players in the next few years.

From day-one, the high high turn-out of players to the clinic, was a sort of excitement to the the Chevron official who are encouraged with the programmed and promised to continue with the project.

Mr. Haastrup however challenged the participants to improve on the foundation that has been laid for them at the NNPC/ Chevron Tennis Clinic.

“In the course of the three weeks that the clinic has lasted, the selected kids have been tutored in various aspects of the game by carefully selected expert trainers, some of whom have played the game at professional level.

“I can therefore say that the participants have been exposed to the necessary basics of tennis, upon which they can build on. I like to congratulate the participants, who have been privileged to be part of this year’s edition. I believe that they will continue to improve on the foundation that has been laid at this clinic”, added Haastrup.

Danjuma Wins LGAN Championship, Berths Uganda Open Olawale Ajimotokan in Abuja Rachael Danjuma from Jaji Golf Club, will headline the Uganda Ladies Open Championship next month following her victory at the Ladies Golfers Association of Nigeria (LGAN) Northern Zonal Championship held in Abuja over the weekend.

Danjuma shot 169 gross (78, 81) over 36 holes to beat Amina Wilfred by five strokes over the sun-baked GEJ Golf Club,

Nigerian Air Force Base, Abuja.

The victory earned both ladies return flight tickets as Nigeria’s representatives to Kampala, where the Uganda Ladies Open will hold.

Maryam Abdulsalam from Kaduna Golf Club returned 180 for third position while Blessing Obaje from Otukpo wound up with 183 to place fourth.

About 88 lady golfers from the northern zone, featured and were joined by their teeming colleagues from the eastern zone

as playing guests.

Zillah Dabbason from Kaduna Golf Club took honours in the nett category with 138, while Stella Musa from IBB Club, Abuja carded 141 nett to edge M. Dzaan from Makurdi Golf Club, on count back, for second position.

Adaugo Martins ensured a podium finish for the host club, on the back of her 71 which fetched her the Best Net victory in the 29-36 handicap flight category. Tina Udoh won the Veteran category with 178

nett over 36 holes.

The Inter-Club Matchplay Championship title went to Jaji Golf Club, Kaduna with a team score of 138 nett, while Otukpo Golf Club came second wth 149 nett.

The Chairman Board of Trustees, IBB International Golf and Country Club, Gen Ibrahim Haruna, performed the ceremonial tee off, while Plateau State Governor Simon Lalong, was one of the gentlemen golfers that played as guests on the second day of the tournament.

Monday September 19, 2016

TR

UT H

& RE A S O

N

Price: N250

MISSILE FG to PDP

“While the PDP was emasculating Nigeria on all fronts, including social, economic and political, the rapacious party was deceiving Nigerians by giving them the illusion of growth and prosperity. Instead of showing remorse and rebuilding itself to a strong opposition party, the PDP has continued to blame the successor Buhari administration which is left to clear their mess.” – The federal government berating the Peoples Democratic Party (PDP) for daring to ask President Muhammadu Buhari to quit over his poor handling of the economy.

ALEXOTTI OUTSIDE THE BOX

alex.otti@thisdaylive.com

Still On the Diversification of the Economy “In preparing for battle, I have always found that plans are useless but planning is indispensable” Dwight Eisenhower

I

n my last column, I attempted to draw attention to the importance of diversifying our understanding of the diversification of the economy beyond commodities to less tangible but more important assets of our nation. These could be summarised under education, talent, entrepreneurship, intellectual property and skills. I concluded by arguing that most modern economies leveraged knowledge to leapfrog to development, even when they have commodities like us.

As our point of departure today, it will be safe to state that harnessing knowledge requires rigorous planning. Some people will be quick to interject that we have had plans in the past that did not yield the desired results. We had the first to the fourth national development plans and a few rolling plans thereafter. While I acknowledge the existence of these plans, I hasten to add just like Eisenhower that such beautifully crafted documents do not have any relationship with what we are discussing. We are interested in the process of thinking through and agreeing what we want to be, how we intend to get there, what we require to get there, who would be useful in our journey, when we have to get there, how to know when we get there and what to do if things change in the process of our journey. Effective planning does not make room for not getting there nor what to do if we don’t. This is because failure does not have a place in effective planning and by the time you find out that you failed, it would probably have become too late. There is a favourite saying that if you do not know where you are going, any road takes you there. Planning helps us to know where we are going and the route to get there.

The first question of where we want to be requires a lot of original thinking, given that no two countries are the same. This is the major job of leadership. Any entity that does not have leaders who can articulate the vision of that entity is doomed. This is where we should actually start the restructuring of our country from. If you look at the developed countries, you will notice that it is all about the vision of the leadership. The good thing about good vision is that it outlasts the visioner.

For our country, a good place to start will be to ensure that we maximise the capabilities and ingenuities of our people. A lot of people make the mistake of placing capital above people and when capital takes flight as it is wont to do, confusion sets in. Marxian economics, even though seems to have fallen on bad times with the collapse of USSR and other socialist countries, have some theories that are still very relevant up till today. One of them is the place of labour in the extraction of surplus value. Surplus value is also known as profit. Marxians insist that surplus value comes from labour and they have been able to demonstrate it mathematically. Simply put, they point out that if the three factors of production are land, capital and labour, the only way a combination of the three factors can produce more goods than the original inputs is that one or more of the factors yield much more than what was employed in the production process. Since land is a natural occurrence and there is no way land can be increased and capital is also fixed naturally, it is only labour that can transform itself and account for profit, depending on energy and time employed. One angle to look at it from is that the essence of government is the good of the people. So, government must be interested in anything that creates jobs for its people. The other angle is that there is no invention anywhere in the world that was not created by people. Viable businesses insist that their most valuable resource is their people. If we agree with this theory, it then follows that as a country we must invest in our people to encourage them to use their talents for the benefit of the country. The most important encouragement you can give a people is neither food nor money, even though those are necessary. I believe it is education. Education liberates the mind, exposes people and sparks off their ability to think and create value. A few weeks ago, we hosted Mark Zuckerberg in this country. Beyond everything, one thing that I believe helped his talent is education. He benefited from very good education at Harvard University.

We must rethink the quality and quantity of education available to our people in Nigeria. One doesn’t take for

President Muhammadu Buhari granted, the fact that with the entrance of the private sector in education, there is a little bit of improvement, but that improvement pales into insignificance if one appreciates our current position assessment. If we look at the position of our universities, alongside other universities in the world, it will amaze not a few people that no Nigerian university made it amongst the first 600 in the league. If not for the University of Ibadan that rescued us, by placing number 11, no other Nigerian university made it to the list of the top 20 universities in Africa. When you look at enrollment, we are also in the very low category. With this kind of scorecard, how do we expect great performance from our graduates? However, we have very happy stories of some of our citizens excelling in spite of our inability to make our universities citadels of excellence.

We must sit back and draw up a clear roadmap of where we want our education to be. We must give ourselves targets. An example is to seriously decide that in four years which will coincide with the life of an administration, not less than five of our universities must be rated amongst the best 10 universities in Africa and 100 in the world.

We will then proceed with a clear planning of human resource, research and development, enrollment, faculty, curricular and most importantly funding to ensure flawless execution. We will then identify very capable and experienced hands to handle this project. In doing this, it would not matter where the hands come from even if we have to hire foreigners. We may also drill down further to identifying areas of research and development that we want each of the five universities to focus on. Just like India chose to specialise in modern Medicine and Information Technology, we may decide to add music and movie technology, taking those two, which our people have done well in, without help from government. We may also add modern textile manufacturing technology, modern designing of clothes, shoes and leather works and automobile manufacturing as part of the preferred areas of specialisation.

To complement the universities, we may, as part of our planning, designate certain locations as Medical, Information technology, Music, Movie, Textile, Leather, and Automobile Villages or hubs. To give effect to the designation, the government will acquire very large expanse of land, build state of the art facilities, and install machines and all necessary infrastructure to attract interested participants to those locations. Huge industrial parks would be built in those locations to enable shared services and encourage start-ups. Generous incentives like for example tax holidays and protective tariffs would be introduced to encourage and attract businesses to the locations.

Management of the locations could be outsourced to the private sector and done in such a way as to encourage them to keep reasonable margins to ensure proper maintenance of the facilities, while maintaining the town and gown relationship with the universities. The government should have at the back of its mind, the original intention of the project which is not necessarily to make money but to encourage talents and entrepreneurship and reduce unemployment while diversifying the economy in a more enduring manner.

In four years, the planning government would have achieved a more respectable and well-funded educational

system, created and encouraged talent, created jobs and jump-started local production. This can be replicated every four years by successive governments. I must tell doubters that this is not rocket science. It is this same country where arms and ammunition were produced during the civil war.

A lot of arms are still being produced illegally in different parts of the country today. Crude oil is being illegally refined locally by people who may not have seen the four walls of a tertiary institution. A young man in Aba in 2014, built a generator from a disused Mercedes 911 engine. A man built a car, with very rough edges and rudimentary technology elsewhere recently. Imagine what will happen if government gets interested in some of these innovations and decides to put its balance sheet behind these local geniuses instead of the futile search for foreign investors.

The Facebook King spoke about the energy in Lagos.

He was impressed with our boys and girls that are into software development and programming. Can’t we organise them and make laws that protect them and their intellectual property? Can’t we do better with copyright laws to protect our musicians and artistes in Nollywood? Can’t we build huge modern facilities in Lagos for instance and make it difficult for people to shoot films in other parts of West Africa and make money? Can’t we invest massively in roads, rail, power, and airports to ensure that we reduce the cost of doing business in Nigeria to encourage our people with ideas and skills to deploy those into products where they can make money and subsequently pay taxes to government? Don’t we think that would be a natural attraction to foreign investors rather than the frequent trips by our leaders to look for them? Have we wondered how a 1 per cent improvement in security would reduce capital flight and improve productivity? What about the very beautiful scenery littered across the length and breadth of the country? How have our planning looked at our tourist sites in Obudu, Idanre, Mambila, Yankari, Lokoja and the likes, not just to upgrade them to points of attraction, but make them accessible and secure so that we can begin to make money off them?

Do we realise that it is the responsibility of government to ensure that jobs are created for its populace? What is government’s target unemployment rate? How is planning being handled to bring down unemployment rate from close

to the present 40 per cent to a manageable number? Recently, we watched the second largest domestic airline close shop and send thousands of people home. Should government let this happen given that beyond the job loses, the suffering of the flying public would multiply? Does government through planning know how many aircraft we need to safely move people around the country? How come no one spoke about bailout funds for Aero Contractors, which by the way is now owned by AMCON? When the US government bailed out auto manufacturers in 2009, it was not because US President Barack Obama liked the faces of those companies. It was to save jobs and save the economy. Less than six years after, all of them have turned the corner and refunded all the bailout funds given to them with interest. Obama could have ignored them like we ignored Aero and the undertakers could have come in and thousands of jobs could have disappeared.

Suffice it to say that development does not happen by accident. It has to be properly planned and flawlessly executed.

Flowing from some of the areas we have identified, which by the way is not exhaustive, it is clear that our planning would be led by the president and the chief visioner of the country assisted by a team of well trained and experienced experts. The main beneficiaries should be the private sector who would join when the objective conditions have been created. It is fallacious to expect the private sector to lead planning. It has never happened and will never happen. The private sector will support the government who is expected not only to show the light, but to fund it and regulate it.

Government must then support the private sector to create jobs. That is the logic of stimulus spending. Government pumps money into the system to get the private sector to create jobs. Once people have jobs, demand will be stimulated because workers, paid workers I mean, will spend money to buy goods which in turn will get more businesses to produce to meet the increasing demand and by so doing create more jobs. Taxes will flow both from businesses and the employed population and the tempo of economic activity will increase and recession will give way to economic growth.

In our diversification journey, we must spend time to articulate what we want to achieve and ensure that we do what we agreed. Planning without action is futile just like action without planning is fatal.

Printed and Published in Lagos by Leaders & Company 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