Wednesday 28th September 2016

FG, States’ Revenue to Dip Further as NNPC Seeks to Use Royalties,Taxes to Fund JVs Chineme Okafor in Abuja In a move certain to raise eyebrows reminiscent of the outcry over the proposal on the sale of the country’s strategic oil and gas assets, the Nigerian National

Petroleum Corporation (NNPC) has said that it is working on new modalities that would allow it to fund its joint venture (JV) cash call obligations in the future, as well as pay off the arrears on the JVs from oil and gas

royalties and taxes.

It said under the planned model, such payments would be deducted through a first line charge, implying that this will leave less funds to the three tiers of government to share.

It disclosed this yesterday in a statement from its Group General Manager, Public Affairs, Mallam Garuba Deen Muhammad in Abuja.

NNPC quoted its Group Managing Director (GMD), Dr. Maikanti Baru, as speaking

on the new modalities at a one-day working visit to the National Petroleum Investment Management Services (NAPIMS), a corporate service unit (CSU) of the NNPC responsible for the management of the

federal government’s oil and gas portfolios in the upstream sector.

Baru said that the current JV payment structure requires an urgent review, noting that Continued on page 8

Senate Starts Probe of Enelamah, MTN’s Alleged Illicit Repatriation of $14bn… Page 10 Wednesday 28 September, 2016 Vol 21. No 7826. Price: N250

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Obasanjo: FG Needs to Spend Less, Earn More, Borrow Way out of Recession Backs asset sale through IPOs as Senate rejects proposal

Omololu Ogunmade in Abuja andSheriff Balogun inAbeokuta

Former President Olusegun Obasanjo yesterday made a number of recommendations to

the federal government as the surest way of getting out of the current economic downturn, saying that the government needs to spend less, earn more, and borrow its way out of the

recession.

Obasanjo spoke in Abeokuta, the Ogun State capital, yesterday at the National Council on Finance and Economic Development

(NACOFED) conference with the theme: “Enhancing Revenue Generation and Obtaining Best Value for Money in Expenditure”.

The former president said:

“We are spending more than what we earn, so we must borrow as quickly as possible.

Let us meet with those who can lend us under reasonable interests rates.”

He said that what the country was witnessing was not unexpected, adding: “I foresaw it two years go. So let Continued on page 8

Edo Decides: All Set as Security Agencies Deploy 26,900 Personnel Accreditation, voting to take place simultaneously, says INEC APC, PDP continue to trade accusations over plot to rig poll Electoral body: Falsifying results not possible Iyobosa Uwugiaren, Onyebuchi Ezigbo in Abuja and Adibe Emenyonu in Benin City

STRENGTHS

STRENGTHS

As registered voters head to the polls in Edo State today to elect a new governor, a total of 26,900 army and police personnel have been deployed statewide to ensure adequate security before, during and after the election.

A breakdown showed that the army will deploy 1,900 officers and soldiers while the police have moved 25,000 of its personnel in the state for the election.

In addition, two drones are to be deployed in each of the three senatorial districts and six gunboats in the riverine areas.

WEAKNESSES

WEAKNESSES

Continued on page 8

Has the backing of federal, state and ruling party machinery Deep pockets to prosecute the election Better grasp of economic issues due to his financial sector background and having superintended the state’s economy for eight years

APC candidate, Godwin Obaseki

Seen as a political novice tied to Adams Oshiomhole’s apron strings Could suffer a backlash from a disenchanted and hungry electorate over the economic recession and APC’s mixed performance at the federal level

A grassroots politician and deeply rooted in Edo politics Has experience in governance having held the post of chief of staff and SSG to former Governor Lucky Igbinedion Served in Igbinedion’s government widely considered to have underperformed Limited war chest

PDP candidate, Osagie Ize-Iyamu

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PAGE EIGHT EDO DECIDES: ALL SET AS SECURITY AGENCIES DEPLOY 26,900 PERSONNEL The Commander, 4 Brigade of the Nigerian Army, BrigadierGeneral Benbela Raji, disclosed this yesterday while briefing journalists shortly after a combined security meeting with the Independent National Electoral Commission (INEC) and other sister agencies in Benin City, the Edo State capital.

He explained that no military personnel would be found at either the voting or collation centres, but would cordon off adjoining routes to the polling units to ensure that criminals or people who want to foment trouble are not allowed into those areas.

“The Nigerian Army is there to play a supportive role to the security agencies. Should there be issues or security challenges beyond the control of the security agencies, the military will, of course, be activated to take care of such situations,” he said.

In a separate briefing, the Inspector-General of Police (IG), Ibrahim Idris, stated that the enforcement of the restriction of movement in and

out of the state commenced at midnight yesterday and the deployment of 25,000 personnel of the Nigeria Police Force.

Idris, who spoke through the Deputy Inspector General of Police in charge of Operations, Joshak Habila, said the restriction would include a lock down of all highways in the state and inner-city streets, adding that the police would also conduct “semi-temporary checks” on vehicles and persons plying such roads.

“I want members of the public to know that at 1 a.m. on September 28, the highways, the in-ways and the out-roads, leading in and out of Edo will be locked down,” he said.

The IG explained that the crime-mapping of flash points was being done to ensure adequate policing and arrest of electoral offenders.

He also explained that in addition to the provision of 25,000 personnel and patrol vehicles for the poll, the air wing of the police had also deployed helicopters to provide aerial surveillance in the three

senatorial zones in the state.

“As I speak to you, we have a large number of men from the special anti-robbery squad, men from the police mobile force, tactical operations squad and men from the force intelligence bureau who are here.

“They have their vehicles.

From now, they will go into the three senatorial districts and carry out aggressive patrols and look out for would-be troublemakers, some of whom we have already captured their behaviour when we did what we call crime analysis.

“We have shared information with other security agencies and we are ready to make sure that we do not allow anybody to truncate the system,” he explained.

On its part, the Independent National Electoral Commission (INEC) said that it had organised several enlightenment, sensitisation meetings for political parties, security agencies, civil society organisations and other stakeholders on the governorship election.

Alhaji Muhammed Leky, INEC’s National Commissioner, South-south, said that there would be accreditation and casting of votes simultaneously, which according to him, is a departure from the past of having separate times for accreditation and voting.

He disclosed that there are 1,915,105 registered voters in Edo State, 2,627 polling units, and 4,011 polling points.

The commissioner said it had moved all the sensitive electoral materials to all the 18 local government offices of the commission in the state and held last minute briefings with election operation officers (EOPs) and election supervisors.

Under the aegis of Nigerian Civil Society Organisations’ Situation Room, no fewer than 70 CSOs have also relocated to Benin City to monitor the governorship election.

Clement Nwankwo, the convener of the Situation Room, said that they were watching with keen interest to see the level of compliance on the part of INEC.

Nwankwo, who declined to disclose the number of its personnel that will be monitoring the exercise, said that their areas of interest would include early distribution and deployment of personnel by INEC; timely opening of poll units; knowledge of procedures by personnel; voting procedures particularly the efficacy of Smart Card Readers; and the collation process, which according to him, “has always been a concern for the Situation Room”.

He said while the Situation Room welcomed INEC’s guidelines on simultaneous accreditation and voting, it was the constitutional rights of voters to stay back and ensure that their votes count.

APC, PDP Trade Accusations However, the two main parties expected to lock horns in the election — the ruling All Progressives Congress (APC) and the opposition Peoples Democratic Party

(PDP) — continued to trade accusations yesterday over the alleged connivance of some officials of INEC to interfere with the exercise.

Specifically, the PDP accused the state government and the electoral umpire of allegedly inducing INEC supervisors to compromise the outcome of the poll in nine out of the 18 local government areas in the state.

The state Publicity Secretary of PDP, Chris Nehikhare, who spoke to journalists in Benin, said that the party had received information of the alleged distribution of N2 million by a senior staff of INEC to the supervisors on behalf of the state government.

Nehikhare, who also alleged that the results of the affected areas had already “been written” for announcement later today, vowed that the party and its supporters would resist with “the last drop of their blood" any attempt to switch election results.

He said: “It has come to Continued on page 9

OBASANJO: NIGERIA NEEDS TO SPEND LESS, EARN MORE, BORROW WAY OUT OF RECESSION us find out the things we can do without, we should instill discipline to cut spending. Also, when we have inflation, it affects everything including local production.”

He observed that the major problem with Nigeria stemmed from the fact that the country spends more than it earns and had not been able to save for the “rainy day”.

He, however, pointed out that funds could be sourced from outside the country and advised Nigeria to approach its allies that could lend to the country under reasonable terms.

He warned, however, that no nation would part with its funds without observing that the federal government was taking practical steps to institute critical reforms, saying that Nigeria must encourage production to earn more and broaden its revenue base.

He said since the nation was not in control of oil prices, it needed to diversify the economy and concentrate on the things it could control.

Obasanjo, who also spoke on the need to develop agriculture, frowned at policies which had turned the nation into a dumping ground for other countries’ products.

The former president, however, endorsed the proposal on the sale of Nigeria’s strategic national assets in order to get out of the current economic hardship.

According to him, the Nigerian National Petroleum Corporation (NNPC) was run as a personal fiefdom and even the Central Bank of Nigeria (CBN) was run in the same manner, saying: “They (government officials) write notes to the central bank to release funds anytime they need it. But we cannot run the country this way.

“We started NNPC about the same time Norway started Statoil and look at where we are. I said it this morning, two institutions that were not tampered with badly or not tampered with at all in the

last six years, is the Nigerian Liquefied Natural Gas (NLNG) company.

“The second one are the pension funds which is going to hit N6 trillion and has captured only 7 million people out of over 20 million wage earners, if we can even double that, you imagine what that can be.”

Continuing, he added: “I see no reason why 49% of NNPC cannot be privatised; don’t give it out to cabals, friends, relations or kith and kin, let it go public so that even my driver can buy 10% of NNPC and if there is a limit to the shares any individual or any corporate organisation can buy, there is nothing wrong with that.

“If this happens, NNPC will then be run like NLNG. NLNG is doing wonderfully well and NNPC was doing very well until we started running it not the way it should be run and if it was run properly in the past, who says it cannot be run that same way in future, so we must prevent recurrence.

“Many people think selling is a bad thing. But I disagree, as you will be restructuring the sector, that is all it is, you’re reorganising the sector.

“You talk of assets that are not doing well, no, if you have to earn money to get yourself out of the situation you are in, you can even sell good assets.

So the only thing to sort out is how to go about selling them?

“What worries many Nigerians is their focus on what happened in the past.

I wouldn’t be particular, but there are concerns that we sold things before and after that we got ‘K’ leg (local parlance for complications).

“But this one should not have ‘K’ leg because it will be on the stock exchange, you will buy and they will assess how much should be sold.

“May be they want to privatise the ports, I don’t know, but these are things we can look at and get people. The only fear the people would entertain is the ‘mago mago’ (local parlance for fraud), but

if there is no mago mago and it is transparent, then there are some advantages to this.”

Obasanjo, however, cautioned that when funds are raised from the asset sales, the manner they are spent and managed by government is just as important.

Senate Rejects Asset Sale But as Obasanjo threw his weight behind proponents of the sale of the country’s national assets, the Senate yesterday unanimously rejected the proposal and called on President Muhammadu Buhari to, as a matter of urgency, send an Economic Stimulus Bill to the National Assembly.

The bill, according to the senators, should contain provisions such as a fiscal stimulus package, investment plans and incentives designed to pull the country out of the current recession.

The resolution was the fallout of the adoption of the report of a six-man ad hoc committee set up last week by the Senate to collate all suggestions made by senators during a two-day debate on the state of the economy and mandated to come up with recommendations to be sent to the presidency on the way out of the recession.

In rejecting the calls for the sale of assets, the Senate warned against disposing of of the nation’s collective heritage.

“Being a sensitive issue, it should be approached from a commitment to protecting the common patrimony of Nigerians by preventing the assets from falling into the hands of sharks, assets strippers and canibalisers while also guarding against the fuelling of further inequities in the society and polity,” it said.

The Senate also resolved to summon the Financial Reporting Council of Nigeria (FRCN) to appear before it and brief it on the true state of the economy.

Other resolutions made by

the Senate included a constant meeting of fiscal and monetary authorities for harmonisation of all policies by the executive, particularly the consideration of lower interest rates for genuine investors as well as medium and small-scale farmers and agribusiness processors.

It also advised the federal government to engage in meaningful and inclusive dialogue with aggrieved Niger Delta militants with a view to averting the escalation of the unrest in the region and simultaneously ensure the protection of Nigeria’s oil and gas assets to facilitate increase in oil production and boost revenue therefrom.

The Senate also advised the president to urgently appoint a Senior Special Assistant with the mandate to lead a team to coordinate government’s engagement with all stakeholders in the Niger Delta, emphasising that the team should include senators from the zone.

It also tasked the president to immediately reconstitute the board of the Central Bank of Nigeria (CBN) and other critical agencies so that their operations comply with the enabling laws.

To ensure that Nigeria saves for “the rainy day”, the Senate also resolved to amend Section 162 of the constitution to pave the way for robust savings by the federation as against the current trend which allows all revenue to be shared among the three tiers of government.

The senators also want the section amended to empower the president to first of all save a prescribed amount of money before sharing the rest with the states, saying the present clause in the constitution does not encourage savings.

The Senate also resolved that its suggestions on the way out of the recession should be personally delivered to the president by Senate President Bukola Saraki.

In his remarks after passing the resolutions, Saraki lauded the decisions, describing the

Senate's action as democracy in action.

Having adopted the suggestions, the upper legislative chamber yesterday adjourned plenary to Thursday because Saraki and his deputy, Ike Ekweremadu, are billed to

appear in court where they are standing trial for alleged forgery of the Senate Standing Orders.

The adjournment became imperative because only Saraki and Ekweremadu can preside over the Senate.

FG, STATES’ REVENUE TO DIP FURTHER AS NNPC SEEKS TO USE ROYALTIES, TAXES TO FUND JVS the new model being proposed by the NNPC would enable it plough back its profits and grow the oil and gas business in the upstream for the benefit of all stakeholders.

According to the statement, he urged the management and staff of NAPIMS to carry out their assignments with professional integrity by benchmarking their operations with global best practices.

He also disclosed that the 12-key business focus areas of the NNPC under his watch were targeted at rejuvenating the entire business operations of the corporation to enable it deliver on its core mandate to all its stakeholders.

He described NAPIMS as a strategic CSU and asked for maximum support from its staff to enable NNPC meet its set goals in the short, medium and long-term.

The statement also said the Group General Manager of NAPIMS, Mr. Dafe Sajebor, who was represented by the General Manager, Production Sharing Contract, Mr. James Jock, in his remarks, assured Baru that NAPIMS would work towards the efficient management of all JVs and production sharing contracts, even in the face of dwindling crude oil prices and incessant pipeline vandalism.

Baru, in a separate meeting, also promised to reposition the National Engineering and Technical Company (NETCO) into the engineering, procurement and construction company of choice.

He made this commitment during the maiden town hall

meeting with the management and staff of NETCO at its headquarters in Lagos.

He said NETCO, as a strategic business unit (SBU), had over the years delivered profits to NNPC. He assured his audience that NETCO would continue to play the pivotal role of providing in-house professional engineering services to all the autonomous business units (ABUs) of the corporation and other clients.

The Managing Director of NETCO, Siky Aliyu, noted in the statement that NETCO was challenged by low patronage by some ABUs of NNPC and the international oil companies (IOCs).

Aliyu however said the company was determined to harness all opportunities in the oil and gas project portfolios in order to keep reporting a positive bottom-line.

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T H I S D AY • WEDNESDAY SEPTEMBER 28, 2016

STARTERS

Hillary Clinton Wins First Round of US Presidential Debate Zacheaus Somorin with agency report Hillary Clinton was considered the winner of Monday night’s presidential debate by 62% of voters who tuned in to watch, while just 27% said they thought Donald Trump had the better night, according to a CNN/ORC Poll of voters who watched the debate. That drubbing was similar to Mitt Romney’s dominant performance over President Barack Obama in the first 2012 presidential debate.

Voters who watched said Clinton expressed her views more clearly than Trump and had a better understanding of the issues by a margin of more than 2-to-1. Clinton also was seen as having done a better job addressing concerns voters might have about her potential presidency by a 57% to 35% margin, and as the stronger leader by a 56% to 39% margin.

The gap was smaller on which candidate appeared more sincere and authentic, though still broke in Clinton's favour, with 53% saying she was more sincere vs. 40% who felt Trump did better on that score. Trump topped Clinton 56% to 33% as the debater who spent more time attacking their opponent.

Although the survey suggested debate watchers were more apt to describe themselves as Democrats than the overall pool of voters, even independents who watched considered Clinton the winner, 54% vs. 33% who thought Trump did the best job in the debate. And the survey suggested Clinton outperformed the expectations of those who watched.

While pre-debate interviews indicated these watchers expected Clinton to win by a 26-point margin that grew to 35 points in the post-debate survey.

About half in the poll said the debate did not have an effect on their voting plans, 47% said it didn’t make a difference, but those who said they

NEWS Senate Starts Probe of

Enelamah, MTN’s Alleged Illicit Repatriation of $14bn The Senate yesterday opened the probe into the alleged fraudulent repatriation of $13.92 billion from Nigeria by the Minister ofTrade, Industry and Investment…

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EDITORIAL Enforcing The Speed Limiters Come this Saturday October 1, the Federal Road Safety Corps (FRSC) will commence the enforcement of the speed limiters on commercial vehicles nationwide.

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Clinton

Trump

were moved by it tilted in Clinton’s direction, 34% said the debate made them more apt to vote for Clinton, 18% more likely to back Trump.

On the issues, voters who watched broadly said Clinton would do a better job handling foreign policy, 62% to 35%, and most thought she would be the better candidate to handle terrorism, 54% to 43% who preferred Trump. But on the economy, the split was much closer, with 51% saying they favoured Clinton’s approach vs. 47% who preferred Trump.

Most debate watchers came away from Monday’s face-off with doubts about Trump’s ability to handle the presidency. Overall, 55% said they didn’t think Trump would be able to handle the job of president, 43% said they thought he would. Among political independents who watched the debate, it was a near-even split, 50% said he can handle it, 49% said that he can’t.

And voters who watched were more apt to see Trump’s attacks on Clinton as

unfair than they were to see her critiques that way. About two-thirds of debate viewers, 67%, said Clinton’s critiques of Trump were fair, while just 51% said the same of Trump.

Assessments of Trump’s attacks on Clinton were sharply split by gender, with 58% of men seeing them as fair compared with 44% of women who watched on Monday. There was almost no gender divide in perceptions of whether Clinton’s attacks were fair.

The CNN/ORC post-debate poll includes interviews with 521 registered voters who watched the September 26 debate. Results among debate-watchers have a margin of sampling error of plus or minus 4.5 percentage points.

Respondents were originally interviewed as part of a September 23-25 telephone survey of a random sample of Americans, and indicated they planned to watch the debate and would be willing to be re-interviewed when it was over.

EDO DECIDES: ALL SET AS SECURITY AGENCIES DEPLOY 26,900 PERSONNEL our attention that INEC and the state government have seriously compromised the election that is going to take place tomorrow (today). People involved in this conspiracy are those that have leaked this information to the PDP and for us to act very fast.

“She (INEC staff) has been sharing N2 million to supervisors in at least nine local government areas of Edo State.

“What they have done is that they have written results for the nine local government areas on behalf of the APC. These results are being held by the supervisors and the collation officers at a point, where they plan to switch the results with the real ones at the local government level once the election is done.”

Similarly, the acting National Pubilicity Secretary of the PDP, Mr. Dayo Adeyeye, alleged yesterday that it had uncovered a plot by members of the APC and INEC to manipulate the election results.

The party said the alleged plan included the distribution of fake results sheets to polling units in different areas of the state; the use of local government collation officers to write fictitious results on real results sheets of some local government areas; and the use of thugs brought into the state from outside to harass and intimidate the citizens of Edo State.

Other aspects of the plot, according to the PDP, include the use of security agencies to arrest, harass and intimidate members and supporters of the PDP, and to provide security cover for members of the APC to execute their nefarious plot.

Adeyeye called on INEC to ensure that its staff abide by the provisions of the Electoral Act. “We are aware that President Muhammadu Buhari has warned the

Two-Minute Briefing

INEC chairman in private to ensure a free, fair and credible process in Edo State.

“We are also aware that the president has also warned the relevant security agencies to ensure the preservation of the peace in the state during the election.

“Despite these warnings, we have uncovered several plots by members of the APC and staff of INEC to manipulate the election results.

“It is important to sound this note of warning again to INEC and APC that the Edo people are united in their determination to vehemently resist any attempt to manipulate the electoral process.

“We urge INEC to ensure that its staff abide by the provisions of the Electoral Act as well as its Electoral Manual and Guidelines.

“We urge the relevant stakeholders to allow the Edo people to freely elect the leader they desire for the next four years and to allow the will of the people to prevail,” he said.

But in its reaction, the state Chairman of APC, Anselm Ojezua, described the claim as a figment of the imagination of the PDP. “That is a figment of their imagination.

They have lost the election already. I am the state chairman of APC. I have been in my home area for three days. So what time did I have to go and bribe INEC officials?

“If anything at all, it is the PDP people that know the INEC officials. After all, most of these INEC officials were employed during the PDP administration. We have trained our agents and they are determined to be very vigilant.

“The truth is that all the plans by PDP to create havoc in Edo State have virtually failed. All the efforts they have made to manipulate the process have also failed.

They can now see that there is nothing other than the true transparent process that will give us results in this election,” he said.

INEC Dismisses Allegations However, INEC yesterday dismissed the claims by PDP of the plot to rig the Edo governorship election, saying it was “totally impossible”.

The commission’s Deputy Director in charge of Voter Education and Publicity, Nick Dazang, said the allegation made by the PDP of possible connivance with the APC to declare fake results does not arise.

Dazang, who spoke to THISDAY, assured all the contestants that the electoral process was going to be transparent, free and fair.

“I want to say that the idea of faking the result does not arise because once the results are declared at every point, party agents are in a position to challenge them, because they can follow the thread, it is as simple as that.

“In line with the existing template, when we finish announcing results at the polling units, party agents will accompany the results to the collation centre at the ward level and from this level the agents can also follow it to the local government area collation centre.

“From the local government collation level, it will now move to the final collation point at the state collation centre. So these processes can be tracked and are transparent.

“It is not only the party agents that are tracking the process, the various election monitoring groups are also going to monitor the process. Once the outcome at the state collation centre is at variance with what we have declared at the other levels we will take action,” he said.

POLITICS Now That Bello’s Battle is Over With last week’s Supreme Court judgment, which upheld the mandate of the Kogi State Governor, AlhajiYahaya Bello, it is time all hands must be on deck for good governance, writesYekini Jimoh Page 18

FEATURES A War Chest against Maritime

Crimes Daji Sani writes that the American University of Nigeria inYola, has used the ‘Technology Enhanced Literacy for All’ project to train thousands of children in the insurgency ravaged North-east Page 20

CRIME&PUNISHMENT ISHMENT Plateau Government, UNICEF Vow to End Child Rape Plateau State Government and UNICEF have resolved to end incessant rape cases against children in the state, noting that over 103 cases of rape have been recorded in the state and most of them were against children.

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CITYSTRINGS The Route March

Chiemelie Ezeobi writes that to test personnel fit for military duties, to foster espiritYinka Olatunbosun reports on a rare find at Fountain Fields, Ikeja where wood de corps…

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INTERNATIONAL ICC to Rule on Damage of Timbuktu Shrine International war crimes judges are to rule in the case of a former Islamist rebel who pleaded guilty to wrecking holy shrines during Mali’s 2012 conflict and apologized for the damage he cause…

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SPORTS FX Scarcity Threatens Nigeria’s

Mission to Zambia NFF is in a fix as it is struggling with preparations for the Super Eagles’ visit to Zambia next weekend for the 2018World Cup qualifier because of scarcity of foreign exchange.

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WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

NEWS

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

Senate Starts Probe of Enelamah, MTN’s Alleged Illicit Repatriation of $14bn

Omololu Ogunmade in Abuja The Senate yesterday opened the probe into the alleged fraudulent

repatriation of $13.92 billion from Nigeria by the Minister of Trade, Industry and Investment, Dr. Okechukwu Enelamah, in collusion

Army Confirms Boko Haram Attacks on BornoVillages Says no presence of terrorists any longer Senator Iroegbu in Abuja The Nigerian Army has confirmed fresh attacks by suspected members of Boko Haram terrorists against some villages in Borno State.

The Director of Army Public Relations (DAPR), Col. Sani Usman, said the terrorists, while scavenging for food at about 5a.m. yesterday, attacked Kwang village and vigilantes from Dagu (which is about four kilometres from Kwang).

Usman however, said the security forces responded and repelled the terrorists’ attack.

During the fire fight that ensued, he said one of the vigilantes sustained gunshot injuries on his hand and was evacuated to General Hospital Uba while the terrorists fled with gun shot wounds.

“Troops were eventually dispatched to the area with clear orders to pursue and deal with the terrorists. They are still exploiting,” he stated.

In a related development, Usman said some suspected remnants of

Boko Haram terrorists at about 4.35p.m. of same day, attacked Boftari, which is about 15 kilometres from Chibok town.

He said on receiving the information, troops from Operation Lafiya Dole stationed in Forward Operation Base Chibok, mobilised to the area.

“The troops encountered Boko Haram terrorists ambush site shortly before Kuburmbula village. They quickly cleared the ambush and proceeded to Boftari,” he added.

He also said the terrorists had set some houses on fire and fled before the troops arrive but have been able put out the fire and are currently on the hunt for the terrorists.

“It is imperative to state that contrary to rumours flying around some media reports, no life was lost,” Usman clarified.

He also insisted that there was no presence of the terrorists in any of the villages talk less of hoisting flags as alleged.

He assured that the troops have continued to maintain high level of vigilance.

with MTN Nigeria Limited, without authorisation.

According to the Senate, MTN, in collaboration with the minister, exploited the porous Nigerian financial system by illegally moving the money out of the country.

It said MTN smartly beat the Nigeria’s financial regulatory laws by failing to obtain a certificate of capital importation, which would have authorised it to move capital into Nigeria from its South African bankers, Standard Chartered Bank, as authorised by the law within 24 hours.

The Senate further disclosed that MTN was incorporated in Nigeria in 2000 as a private liability company and eventually obtained its operating licence with the sum of $284,906,275.89 on February 6, 2001 but failed to bring capital into Nigeria as required, adding that when it eventually moved in $117.6 billion between 2001 and 2003, it did so in three tranches.

It described this action as a sheer violation of the law authorising capital importation within 24 hours.

Moving the motion during the plenary, Senator Dino Melaye gave the breakdown of how the money was repatriated through four banks, which he named as Stanbic IBTC - $4.87 billion; Standard

Chartered Bank - $5.72 billion; Citi Bank - $2.98 billion and Diamond Bank - $0.35 billion, pointing out that the repatriation was done in violation of Memorandum 22 of the Foreign Exchange (Monitoring & Miscellaneous) Act, 1995.

He said: “The Senate notes with serious concern the repatriation of $13.92 billion illegally out of Nigeria

by Mobile Telecommunication Network (MTN) Limited through its bankers between 2006 and 2016.

“The Senate is aware that MTN was incorporated in Nigeria as a private limited liability company on the 8th of November 2000, obtaining its operating licence with $284,906,275.89 on February, 2001.

“The Senate observes that MTN did not request for certificate of capital importation from its bankers, Standard Chartered Bank, within the regulatory period of 24 hours of the inflow.

“It observes also that the CBN was not notified of this inflow by Standard Chartered Bank within 48 hours of receipt and conversion of the proceeds to naira as required by regulations.

“The Senate further observes that the sum of $117.68 billion was also brought in by MTN between 2001 and 2003 in three different tranches.

“The Senate is concerned that

since inception, MTN sought the collaboration of influential and unpatriotic Nigerians to assist them in looting our external reserves.”

He accused Enelamah, whom he described as the owner of CELTELCOM and operates in Mauritius, of claiming to have invested in MTN on February6, 2008 and consequently obtaining a certificate of capital importation and closing the same investment the same day after receiving dollar payments, which Melaye alleged the minister repatriated to New York on the same day.

“It is alarming that the Minister of Trade, Industry and Investment, Dr. Okechukwu Enelamah, owner of CELTELCOM Investment Limited with address at No. 608, St. James Denis Street, Port Lewis Mauritius purpotedly claimed to invest in MTN on 7th February 2008, got a certificate of capital importation and filled From A on the same date (7th February 2008) closed his investment in Nigeria after receiving dollar payment for repatriation to New York on the same day,” he said.

Melaye also alleged that some Nigerians, including the Chairman of Diamond Bank, Pascal Dozie, Ahmed Dasuki, Gbenga Oyebode, Babatunde Folawiyo, Enelamah,

Mohammed Sanni Bello and Victor Odili, of operating a Special Purpose Vehicles (SPVs) outside the country but got “shareholders loan and their repayment to the extent of repatriation of proceeds of dividends back to MTN International South Africa through the entities and operators of SPVs were brought on board as directors of MTN Nigeria”.

Melaye then proceeded to list the authorised processes of repatriating funds which he said were all violated by MTN and Enelamah.

Among them is that the authorised dealer through which the foreign currency or capital for the investment referred to in sub-section 1 of this section is imported shall, within 24 hours of the importation, issue a certificate of capital importation to the investor and shall within 48 hours thereafter, make returns to the CBN giving such information as the central bank may from time to time require.

Having made his presentation, the Senate mandated its Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation into the matter and report its findings back to the Senate.

Shell: Fire Forced Closure of Bonny Pipeline Shell has said fire has forced it to close a key oil pipeline feeding Nigeria’s strategic Bonny Export Terminal, which militants attacked last week.

The ongoing challenges, according to Associated Press (AP) are losing oil multinationals billions of dollars in what used to be Africa’s biggest petroleum producer.

SBM Intelligence risk analysts estimate that renewed militant attacks, low oil prices and weak refinery margins have cost Dutch-

British Shell and United States-based Chevron and ExxonMobil $7.1 billion in the first half of the year, representing about 70 per cent of earnings.

Shell spokesman, Precious Okolobo, said the Trans Niger Pipeline was shut down Monday to investigate a fire.

Shell has refused to comment on reports that militants bombed its Bonny crude pipeline Friday, crippling exports days after they resumed following months of repairs from a May bomb attack.

WEF Seeks Partnership for IT ANOTHER TALKSHOP ON THE NIGERIAN ECONOMY L-R: Minister of Finance, Mrs. Kemi Adeosun; Gombe State Governor, Alhaji Ibrahim Dakwambo; Ogun State Governor, Senator Ibikunle Growth in Nigeria Amosun; and former President Olusegun Obasanjo, at the National Council on Finance and Economic Development (NACOFED) conference, The World Economic Forum (WEF) and CWG Plc, Africa’s largest IT Integration Company are to partner on boosting the African IT sector and give opportunity for growth.

This formed part of an interactive session when a delegation of the World Economic Forum went on a familiarisation tour of the CWG Plc facilities at the company’s corporate headquarters in Lagos recently.

WEF delegates, Associate Director and Head of Africa membership, Ms. Jesmane Boggenpoel and Assamoi, Community Lead Business Engagement, Africa, Mr. Bertrand were at CWG on the invitation of the founder, Austin Okere, for an interactive session at CWG headquarters.

CWG highlighted its offerings to the public and private sector that are positioned to enable growth across Africa since its inception in 1992.

According to Agada, CWG is desirous of WEF’s support in promoting and grooming IT solutions and services in Africa.

He particularly mentioned the Nigerian Research and Education Network (NgREN) phase 2, which is being rolled out again, saying it will enable growth of capacity, especially among the youths. He also mentioned that Government support is needed for the offtake of some of our solutions, particularly in improving CWG IGR - Internally Generated Revenue initiatives.

in Abeokuta...yesterday

Confusion as Naira Slumps to N452/$ on Parallel Market Obinna Chima The naira continued to plummet on the parallel FX market yesterday as it fell to N452 to the dollar, lower than the N445 to the dollar from the previous day as demand for the greenback continued to outweigh supply.

The spot rate of the naira also fell on the interbank FX market to N312 to the dollar, compared with the N308 from the previous day.

Some currency analysts blamed the performance of the naira on

the parallel market on the activities of currency speculators.

“The situation is gradually getting out of control. For me, you can’t give what you don’t have. Nigeria’s dollar receipts has dropped significantly and the Central Bank of Nigeria (CBN) does not manufacture dollar, it earns dollar. And our dollar receipts have reduced significantly.

So, we are in a dilemma.

“Another factor responsible for what is happening on the parallel market is that a lot of importers

involved in the importation of those 41 items that were banned are also sourcing for FX to import those items for the normal end of year sales, “a currency analyst who pleaded annonymous said.

He, however expressed optimism that once the central bank finalise its arrangement for Travelex to be selling dollars directly to bureau de change operators (BDCs), normalcy might be restored in the market.

The President, Association of Bureau De Change Operators of

Nigeria (ABCON), Mr. Aminu Gwadabe, had argued that the current rate of the naira on the parallel market was not a true reflection of the value of the currency. He also attributed the development to the activities of speculators.

According to him, the situation in the parallel market was being driven by speculators taking advantage of the poor implementation of the CBN policy requiring banks to sell dollars to bureau de change operators.

WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

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Obasanjo: Pension Funds Sacrosanct, Warns against Risky Innovations Says he warned against depleting reserves before ‘rainy day’ Buhari: Backlog of pension arrears being addressed

James Emejo in Abuja Former President, Chief Olusegun Obasanjo, yesterday said though he is excited over the successes so far recorded in the Nigerian pension industry, further innovations must be undertaken with caution.

He said pension assets are sacrosanct and must be preserved “no matter what we do.”

Speaking in Abuja at the opening of the third edition of the World Pension Summit Africa Special with the theme: ‘Pension Innovations: The Africa Perspective,’ he said any further innovations must put the security and sustainability of funds into consideration and ensure that the critical issue of trust is not compromised.

The former president said: “I like innovation but innovation must be with caution; we can’t be too adventurous.” He said pensioners must have access to their money whenever they needed it.

Speaking on ‘Global Trends and Developments Impacting Africa,’ he expressed satisfaction that the pension reforms he helped to initiate during his time in office now had almost N6 trillion in assets with about 7 million registered employees in the system.

Obasanjo said future innovation in the industry should be centered on how to capture more salary earners into the pension scheme and explore the huge potentials in the informal sector of the economy, particularly those who would be engaging in self-employment at this time of recession.

He said pension asset managers should ‘think outside the box’ and borrow a leaf from other climes where pension assets had been effectively deployed to bridge infrastructure gaps.

Specifically, he said pension funds should be creatively utilised to provide housing for all Nigerians as well as construct roads.

He further advised against the dilution of pensions laws on the alter on innovation. He said it would have been heartless on his part, if he did nothing to reform the pension system, having seen that those who had sacrificed for the country particularly in the military and elsewhere, had nothing to fall back on.

Also yesterday, the former president recounted the developments which may have led the country into the current economic woes, stressing that he warned against spending of the nation’s savings against the rainy day but was ignored, adding that now that the rainy day had come, there’s nothing left to be spent.

Meanwhile, President Muhammadu Buhari has promised that his administration is currently addressing inherited outstanding pension liabilities of the federal government within the scarce resources available to it.

Speaking while declaring the pension summit open, he said pension matters occupied a strategic place not only as a vital component of social security but also as a vehicle for nation building.

He said the federal government

Ikpeazu, Ogah Oppose Otti’s Application to Join Appeal on Abia Governorship Tussle Tobi Soniyi in Abuja

Abia State Governor, Dr. Okezie Victor Ikpeazu, and the man seeking to remove him from the office, Dr. Samson Ogah, yesterday opposed the bid by the governorship candidate of the All Progressives Grand Alliance (APGA), Alex Otti, to join the legal action on the Abia State governorship seat now pending at the Supreme Court.

The two politicians on the platform of the Peoples Democratic Party (PDP) informed the court that an attempt by Otti to be included in the legal tussle would breach the law since he had no legal right to justify his application to join the appeal.

Opposing Otti’s application, Ikpeazu, through his counsel, Chief Wole Olanipekun (SAN), objected to hearing of the appeal filed by Otti on the grounds that the Court of Appeal in Abuja had on August 18 shut him out and refusing his application to be a party.

Olanipekun told the court presided over by Justice Ibrahim Tanko Mohammed that the Appeal Court which, on August 18 rejected the joinder application, had given judgment in the substantive matter and that since Otti was not in the substantive matter, he had no right of appeal to be joined in the matter again.

The counsel argued that no order

was made against him (Otti) and as such, he had no business dabbling into the matter.

Dr. Alex Izinyon (SAN) who stood for Ogah, also objected to the application of the appellant (Otti) to be joined in the matter.

Izinyon argued that the request for joinder by Otti had come to a final end in the court of appeal where he was disallowed from joining the substantive suit.

Otti through his counsel, Chief Patrick Ikwueto (SAN) had sought to move his motion for joinder for the APGA governorship candidate in the 2015 governorship election to be brought into the dispute.

After arguments from Olanipekun, Izinyon and Ikwueto, Justice Mohammed ordered the senior lawyers to file their briefs of arguments and make same available to the court within 14 days.

Justice Mohammed ruled that the court would fix a date for hearing of the matter as soon as the briefs of arguments have been filed.

Meanwhile, the court granted Ogah’s application for leave to amend his notice of appeal.

Olanikpekun and other lawyers did not object to the application, prompting Justice Mohammed to grant the application.

Justice Tanko said with the granting of the leave to the appellant, a new date would be communicated to parties for hearing of the matter.

had established the Contributory Pension Scheme (CPS) in 2004 due to its advantages including its sustainability component.

Represented by the Head of the Civil Service of the Federation, Ms. Winifred Ekanem Oyo-Ita, Buhari said the CPS has eliminated incentive for corruption and shown the ability to generate investible long term funds that drive economic development.

He said within 12 years of its implementation, the CPS has to a large extent, stabilised the country’s pension administration system.

The president said: “Before the reform, Nigeria had large pension liabilities in trillions of naira but now the CPS has generated over N5.83 trillion of pension assets as at June 30, 2016, which are invested in various sectors of the Nigerian economy.”

He, further expressed delight

that Pencom is currently working to extend the net to cover the informal sector under the micro pension scheme. Buhari said the commission had been asked to step up its enforcement drive to ensure full compliance by public and private sector institutions in line with the enabling law.

However, co-founder of the World Pension Summit (WPS), Mr. Eric Eggink, said efforts should be made to utilise the advancement mobile technology to significantly boost pension participation.

He said products like micro pension as well as providing online access to pension products-and any innovation that lowers the threshold to accommodate players in the informal sector would be a great boost to the growth of the sector.

However, he noted that the issues of cyber crime and internet speed

may constitute defining factors to the success of online pension.

Also, Chief Executive, WPS, Mr. Chris Battaglia said there’s need to put pension assets work, especially at a period of high cost of funds, occasioned by tightening of monetary policy.

The Director General, National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, said Africa’s infrastructure deficit which she put at $93 billion annually could be addressed by a coordinated, multifaceted approach to development and the integration of domestic funding sources particularly pension funds and foreign institutional investors.

She said part of the summit expectations would be to brainstorm on ideas and experiences on innovative practices in pensions and social security to advance

the African agenda of addressing economic and social challenges.

According to her:”Then again, cutting-edge Infrastructure is critical for economic growth and social progress. Extant indices show that Africa’s infrastructure remains by far the most deficient and costly among developing countries. In many cities, the challenge of urbanisation and the need for modern infrastructure is already evident. One-third of urban residents in Sub-Saharan Africa are located in 36 cities, each with more than one million inhabitants.

“The United Nations estimated that by 2025, the population in Lagos and Kinshasha would reach 18.9 million and 14.5 million, respectively.

To put this in context, it would be the equivalent of combining the current populations of London, Berlin and Madrid, which stand at 15.42 million based on 2015 population.”

DIVIDEND OF DEMOCRACY IN ACTION

R-L: Rivers State Governor, Nyesom Ezenwo Wike; former Governor of Jigawa State,Alhaji Sule Lamido; Deputy Governor, Rivers State, Dr. Ipalibo Harry Banigo, during the inauguration of the Ozuoba-Rumosi road in Obio/ Akpor Local Government Area of the state...yesterday

Supreme Court to Rule on Suits against Ayade, Tambuwal on December 9 Tobi Soniyi in Abuja A five-man panel of the apex court, led by Justice Olabode RhodesVivour has adjourned to December 9 for judgment in an appeal filed

by Mr. Joe Agi, SAN, a People Democratic Party (PDP) aspirant in the 2015 governorship primary who is challenging the emergence of Governor Ben Ayade as the party’s candidate.

While adopting his client’s written brief yesterday, Agi’s counsel, N. P. Ibegbunam urged the court to uphold his client’s appeal against Ayade.

He said his client had since realised that Ayade gave false information about his age, and had thereby contravened the provision of the PDP guideline, which is supported by Section 177 of the Constitution.

“We are urging the court to apply the provisions of Articles 14(b) and 15(2) of the PDP Guideline which disqualify the 3rd respondent (Ayade),” he said.

When asked what law firm he belonged, Ibegbunam said he was a counsel in the firm of Ferdinand Orbih and Co. The court asked the question after Ayade’s lawyer, Chief Wole Olanipekun (SAN) drew the attention of the court to the fact that the brief was settled

by Ferdinand Orbih and not Ibegbunam.

Agi, a member of the party and a governorship aspirant of the party is challenging Ayade’s qualification to contest the election on the platform of the PDP having allegedly made false claims about his age.

He alleged among others, that Ayade gave three birth dates - 1966, 1968 and 1969, a development he said contravened the provisions of Articles 14(b) and 15(2) of the PDP Electoral Guideline, the Electoral Act and by extension, the Constitution.

Justice Adamu Kafarati of the Federal High Court, Abuja

and the Court of Appeal, Abuja division dismissed Agi’s case on the grounds that he failed to prove the allegation and that the discrepancies in Ayade’s age resulted from his aides’ errors, prompting Agi to appeal to the Supreme Court.

Earlier, Agi’s lawyer, Ken Njemanze (SAN) had urged the court to uphold his client’s appeal and set aside the concurrent findings of the trial court and the Court of Appeal. Also, the apex court will on December 9, 2016 deliver judgment in an appeal challenging the propriety of nomination of Governor Aminu Waziri Tambuwal by the All Progressives Congress (APC) for the 2015 gubernatorial election in the state.

The court will among others, determine whether Tambuwal was nominated in compliance with provisions of the Electoral Act 2010 and the APC 2014 Guidelines for the nomination of candidates for

elective offices.

Specifically, the court will determine the issue of swapping of delegates list at the primary election of the APC said to have been conducted on December 4, 2014 at Giginya Stadium in Sokoto.

Justice Bode Rhodes Vivour who presided over a session of the court in the matter yesterday fixed the appeal for judgment after submissions by various parties in the appeal.

Two appellants, Alhaji Umaru Dahiru and Mr. Aliyu Abubakar Sanyinna, who were governorship aspirants on the APC platform in the 2015 general election filed the appeal.

In their brief of arguments filed by Professor Awa Kalu (SAN), the two appellants pleaded with the apex court to reverse the decision of the Court of Appeal which held that their suit had become an academic exercise by virtue of the election of Tambuwal in the April 11, 2015 governorship poll.

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WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

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Foundation Flags Off Application Process for Scholarships on Governance and Leadership Initiates debate on obstacles to public sector participation in Africa The Africa Initiative for Governance (AIG), a foundation set up to bridge the knowledge gaps in governance in African countries, has announced the commencement of the process for applications for its 2017 scholarships for a Master degree in Public Policy at the renowned Blavatnik School of Government, United Kingdom.

The announcement came ahead of the AIG’s inaugural meeting of its Panel of Advisers which would discuss on obstacles to public sector participation in Africa in Lagos tomorrow. The event will take place at the AIG’s office in Ikoyi According to statement issued by its founders last Monday, from 2017, the AIG would fund five scholarships each year as part of a new five-year partnership with the renowned Blavatnik School of Government, the UK’s first school of government, at the University of Oxford which is based on the shared purpose of building good governance and public leadership.

The AIG is an initiative of Aigboje Aig-Imoukhuede, former Managing Director of Access Bank; his wife, Ofovwe Aig-Imoukhuede, and Herbert Wigwe, the incumbent Managing Director of the bank.

In an interview with THISDAY in Lagos recently, AigImoukhuede, who is the AIG’s Chairman, elaborated on the ultimate goal of thegroup saying:

“Essentially, my goal is that in the next 10 to 15 years, through the intervention... we will bring as many as 200 individuals into the public service, men and women, people of strongest intellect who have had great exposure intellectually in a formal academic setting as scholars. So I am not looking at creating academicians, we are looking at creating public servants. And so we create the scholars, we create cohorts of these scholars; you can call them the core of those who will work in the public sector in 15 to 20 years time. We will not stop there, at some point in time, we will have a stock, maybe the core will grow to a thousand.”

According to the statement issued by the founders, “The AIG is a foundation established in recognition of the fact that Africa’s poor record of public sector governance is a critical factor preventing the continent from achieving its true potential.

The initiative brings together proven private sector innovation, leadership and funding into a private-public partnership to attract, inspire and support future leaders of Africa’s public sector. The AIG believes that the high-calibre individuals trained at the Blavatnik School will drive best practice standards of governance across Africa, ensuring sustainable economic growth and social justice.”

The AIG scholarships,

according to the statement, would have an initial focus on candidates from Nigeria and Ghana, allowing the students to study for a Master degree in Public Policy alongside classmates from across the globe. The scholarships will be available to those who can demonstrate academic excellence, proven leadership and commitment to public service, who intend to return to the public sector in Africa after completing their studies.

Along with the scholarship scheme would be an academic fellowship scheme.

The AIG Visiting Fellowship would also be available from 2017, open to candidates who can demonstrate an outstanding contribution to public policy that has yielded meaningful

impact on the public good, and commitment to public service in their country, region and globally.

The fellowship is open to senior officials or practitioners working in or with government and who are resident in West Africa.

Aig-Imoukhuede also added: “The AIG Scholarship and Fellowship initiatives are scalable interventions aimed at tackling Africa’s intractable challenge of poor public sector leadership. I am confident that our partnership with Oxford University’s prestigious Blavatnik School will become fertile ground for growing future statesmen and women who will change the African continent for good. I encourage anyone who believes that they fit the profile for these

scholarships and fellowships to apply.”

Professor Ngaire Woods, Dean of the Blavatnik School of Government, said: “We are deeply grateful to the Africa Initiative for Governance for partnering with us. The Blavatnik School of Government shares with the AIG a clear purpose – to transform government through effective leadership and better governance.

The shared programme will enable excellent West African scholars from all backgrounds to study for an MPP and will also bring senior practitioners from the region to the School as AIG Visiting Fellows – providing opportunities to help drive transformational public sector leadership across the African continent.”

The AIG Panel of Advisors is

made up of eminent personalities selected from across West Africa and will act as the selection panel for the award of scholarships and fellowships, as well as mentors to successful applicants. The Panel will also meet regularly to debate the challenges that Africa’s public sector faces and to conceive and propose solutions with long term impact. The panel is made up of former President Olusegun Obasanjo, Dr EnaseOkonedo, Dean of the Lagos Business School, Alhaji Abubakar .B. Mahmoud (SAN); Managing Partner, Dikko and Mahmoud and Mr. Ernest ChukwudiEbi. Others are Mr. Segun Adeniyi, Mrs. Yemisi Ayeni and Mr. Ken Ofori-Atta, Co-Founder and Executive Chairman of Databank, Ghana.

Saudi Arabia Dashes Hopes for OPEC Deal in Algeria Ejiofor Alike with agency reports Saudi Arabia yesterday dashed the hopes that the Organisation of Petroleum Exporting Countries (OPEC) could reach an agreement to reduce crude oil production in Algeria today as the differences between the kingdom and rival Iran remained unresolved.

Saudi Arabia had offered to reduce its output if Iran agreed to freeze production, a shift in Riyadh’s position as the kingdom had previously refused to discuss output cuts.

But Iranian Oil Minister ,Bijan Zanganeh, had yesterday stated that expectations should be modest.

However, yesterday’s position of Saudi Arabia’s Energy Minister showed that his kingdom and Iran remained too far apart.

“This is a consultative meeting ... We will consult with everyone else, we will hear the views, we will hear the secretariat of OPEC and also hear from consumers,” Reuters quoted Saudi Energy Minister, Khalid al-Falih, as telling journalists yesterday.

OPEC will hold informal talks today and its members are also meeting non-OPEC producers such as Russia on the sidelines of the International Energy Forum, which groups producers and consumers.

Oil prices have more than

halved from 2014 levels due to oversupply, prompting OPEC producers and rival Russia to seek a market rebalancing that would boost revenues from oil exports and help their crippled budgets.

The predominant idea since early 2016 among producers has been to agree to freeze output levels, although market watchers have said such a move would fail to reduce unwanted barrels.

Russian Energy Minister, Alexander Novak, was due to meet Zanganeh yesterday in what sources said was a new attempt to persuade Tehran to play ball.

Falih also said he was optimistic about the oil market although rebalancing was taking longer than expected.

“The market is trending in the right direction, slower than what we had hoped for a few months ago but the fundamentals are moving in the right direction.”

“From that aspect we are feeling good about the market and I think the rebalancing is here but taking (longer) than what we had hoped,” Falih told journalists.

He said record global stocks of oil had started to decline, adding: “How fast will it take place, it also depends on the production agreement. If there is a consensus on one in the next few months, Saudi Arabia will be with the consensus view.”

80 HEARTY CHEERS

R-L: Celebrant, Mrs. Bola Kuforiji Olubi; founder, First City Monument Bank (FCMB), Chief Michael Subomi Balogun; former Governor of Anambra State, Mr. Peter Obi; and former Governor of Ogun State, Mr. Gbenga Daniel, during the 80th birthday church service of Mrs. Olubi at the All Saints Anglican Church,Yaba,Lagos....yesterday KolawoleAlli

Bill Advocating State Police Passes Second Reading House wants local production of army, paramilitary uniforms Damilola Oyedele in Abuja The House of Representatives yesterday passed through second reading, a bill seeking to allow for the establishment of state police as a way to ensure effective community policing in Nigeria.

The bill titled: ‘A bill for an act to alter the Constitution of the Federal Republic of Nigeria, 1999 to provide for the establishment of state police and to ensure effective community policing in Nigeria; and for other related matters,’ was sponsored

by Hon. Awoleye Abiodun Dada (Oyo APC).

Awoleye said the current security situation in the country calls for a reconsideration of the structure of the Nigeria Police.

Contributing to the debate, Hon. Kayode Oladele (Ogun

APC) argued that the notion that a state police would be abused by politicians is no longer tenable in contemporary Nigeria.

“We say it would be abused, is it not being abused in the current federal system? ...The current structure is colonial and that police should be decentralised is not a political issue,” Kayode said.

He added that the manner of transfer of police officers from one base to another does not allow for adequate comprehension of the areas they are posted to therefore jeopardising investigations.

“Each state would be able to determine the number of police needed in the state,” he said and added that community policing would enhance police relationship with communities.

The amendment was referred to the special ad hoc committee on constitution review.

In another development, the House has mandated its Committee on Defence to ensure that uniforms and other apparels of the Nigerian army, navy, air force, customs, immigration, police, civil defence, prisons and fire service are produced and procured locally.

The House noted that the N4.3billion budget for uniforms and apparels would benefit local industries and boost the economy.

The resolution followed a motion of urgent national importance sponsored by Hon. Ossy Prestige (Abia APGA) who noted that local industries have the ability to produce the quality of apparels required for

the agencies.

“The role of the government in ensuring the sustainable growth of indigenous cloths manufacturing industries cannot be over-emphasised.

The government must put in place palliative measures to ensure that the industry is empowered and an enabling environment should be created to aid the growth of the industry,” Prestige said.

He however cautioned that only licenced manufacturers should produce the uniforms.

“Concerned that in this era of economic meltdown, this administration’s policy of foreign currency conservation cannot be achieved if we continue patronising the foreign market and trading in foreign currency,” the lawmaker added.

WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

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NEWS

Remuneration for CJN, Other Judicial Officers hit N33.47bn Annually The Chief Justice of Nigeria (CJN), federal judicial officers, and state judicial officers have in the last one year guzzled a total sum of N33.47 billion as emoluments and other allowances, checks by the Economic Confidential has revealed.

The report obtained and computed by the economic intelligence magazine showed the annual salaries, regular and non-regular allowances of 934 judicial officers in the country, including the CJN. These include: vehicle maintenance and fuel, personal assistants, domestic staff, entertainment and utilities allowances. Others are: hardship allowance, outfit and newspapers allowances respectively.

A careful observation of the report showed that the CJN has an annual salary of N3.36 million and like the president of

the country, to be provided with vehicle maintenance and fueling, domestic staff, entertainment, utilities and newspapers.

Furthermore, the CJN has 25 per cent of his annual basic salary reserved for personal assistant and outfit each or its equivalent of N840,993.13 respectively an half of his annual salary as hardship allowance which amounts to N1,681,986.25.

However, accommodation and furniture will be provided for the CJN, while annual leave, severance gratuity and vehicle loan which is optional will be 10 per cent, 300 per cent and 400 per cent respectively.

His duty tour allowance within Nigeria is settled at N50,000 per night, while that of overseas or estacode amounts to $2000.00 per night.

Justices of the Supreme Court and the President of the

Buhari Meets Dogara, Tambuwal Tobi Soniyi inAbuja President Muhammadu Buhari yesterday met with the Speaker of the House of Representatives, Hon. Yakubu Dogara and the Sokoto State Governor, Aminu Tambuwal at the State House, Aso Rock Villa.

The meeting held behind closed doors. Both the Speaker and the Sokoto State Governor would not talk to journalists after they emerged from the meeting.

The president’s media aides have also not said anything about the meeting.

Fashola: FG Working to Address Forex Challenges of Electricity Operators Chineme Okafor in Abuja The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said the federal government is aware of the liquidity challenges of operators in Nigeria’s electricity market and is working hard to address them.

Fashola said yesterday at a power forum in Lagos that the government knew operators were going through tough times with the country’s volatile foreign exchange rates, as well as debts owed them by government’s Ministeries, Departments and Agencies (MDAs).

He stated that the Nigerian Bulk Electricity Trading Company (NBET) is working to provide more liquidity for the sector.

THISDAY had recently reported a fresh N180 billion financial package being negotiated by the NBET with the Central Bank of Nigeria (CBN) for the power sector.

A text of Fashola’s speech at the forum where he made these disclosures was provided by his senior communications aide, Mr. Hakeem Bello, to THISDAY inAbuja.

“One of the challenges that currently the afflicts the sector is the liquidity issue. I can say categorically that Government is aware of these issues ranging from the volatile foreign exchange rates to MDA debts, to collection losses,” said Fashola.

He however stated that resolving the current liquidity challenges of the power sector requires that all operators in the value chain, not only the government, act with a common commitment, transparency and candour.

He said: “As I said at my inception of duty tour, we will pay all properly verified debts and we

have started working with ministries and departments to ascertain the actual quantum of debts, with a view to solving them. The bulk trader, NBET is working to raise funds to provide financial security for the sector.

“What we need is full disclosure from all operators in and open manner to assist us ascertain that the debts are legitimate so that we can take the next steps. What we do not need is a media war between operators about who is the cause of the problem.”

He also gave reasons why the government might not be in a hurry to privatise the Transmission Company of Nigeria (TCN) which has now reverted to its management afterManitoba’s four-yearmanagement contract in the TCN ended in July 2016.

“Let me say that to the best of my knowledge, India, SouthAfrica, Brazil, Mexico and China have privatised their power sector and none of them privatised all the three generation, transmission and distribution at the same time. Best practice has been to privatise two and leave one; and there is no rule about which one to privatise or leave.

“That said, subject to what the Government-in-Council may decide, my personal view is that while we are in a transition of making the best of the privatisation of generation and distribution, it is sensible to wait for those sectors to stabilise, achieve efficiency and service delivery before even contemplating privatisation of transmission, if at all we are so disposed,” he said.

The minister added: “My position appears reinforced by the liquidity issues we are talking about and the current ability of government to at least fund some of its transmission projects.”

Court of Appeal have the same annual salary of N2.47 million each, while justice of the Court of Appeal, Chief Judge of Federal High Court, Chief Judge of the FCT, judges of the Federal High Court, President of the National Industrial Court, Grand Khadi of the FCT Sharia Court of Appeal, President FCT Customary Court of Appeal, Chief Judge of states, Grand Khadi state Sharia Court of Appeal and President ,state Customary Court of Appeal all have N1.99 million each a annual salary.

Furthermore, the judges of the Federal High Court, National Industrial Court, FCT High Court,

State High Courts, FCT Sharia Court of Appeal, FCT Customary Court of Appeal, Khadi state Sharia Court of Appeal and state Customary Court of Appeal all have N1.80 million each as annual salary.

All the judges in the country apart from the CJN, have 75 per cent of their annual salaries as vehicle maintenance and fuelling, 25 per cent for personal assistant, 50 per cent as hardship allowance, 75 per cent for domestic staff, 45 per cent for entertainment. Others are: 30 per cent of their annual salaries as for utilities, 25 per cent for outfit and 15 per cent for newspapers.

As for non-regular allowances,

except the CJN, all judges have 200 per cent for accommodation once a year, 300 per cent of annual salary for furniture, 10 per cent for annual leave, 300 per cent as severance gratuity and 400 per cent for vehicle loan which is however optional.

All the justices of the Supreme Court and President of the Court of Appeal are entitled to N35,000.00 as duty tour allowance per night within the country, while their estacode is $1300 per night when they travel out of the country.

Also, justices of the Court of Appeal, Chief Judge of Federal High Court, Chief Judge of the

FCT, judge of the Federal High Court, President of the National Industrial Court, Grand Khadi of the FCT Sharia Court of Appeal, President FCT Customary Court of Appeal, Chief Judge of states, Grand Khadi state Sharia Court of Appeal and President state Customary Court of Appeal all have N30,000 as duty tour allowances each within the country and $1,100 as estacode.

Other judges outside the above are entitled to N25,000 as duty tour allowances per night within the country and $800 for estacode when they travel out of the country per night.

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T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

COMMENT

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

RESTRUCTURING NIGERIA

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The country should be restructured on the basis of true fiscal federalism, writes Sonnie Ekwowusi

s Nigeria marks another independence anniversary amid uncertainties, confusion and bourgeoning poverty as a result of the biting recession, I think it is apposite to reflect on the urgency of the much-vaunted political and economic restructuring of Nigeria to make it livable for all. In his book, “Ethnic Politics in Kenya and Nigeria,” Godfrey Mwakikagile, a prominent Tanzanian scholar, writer and specialist in African studies, writes that Nigerian federation since the 1940s was plagued by a political imbalance in favour of Northern Nigeria. Chief Anthony Enahoro later reiterated this deep-seated political imbalance which placed one of the regions (Northern Region) as the dominant region. And that the Nigerian Civil War was a true test of the viability of a true federal structure not only for Nigeria but for other African countries. The author states that theoretically Nigeria today is a federation that is composed of 36 states but in practice Nigeria doesn’t function like a federation.

The fact remains that the deep-seated political, economic, social and cultural imbalances plaguing the Nigerian enterprise right from Nigeria’s independence in 1960 or even before have engaged the attention of both successive Nigerian governments and the Nigerian people. For example, all the Constitutional Conferences that were held in Nigeria from the 1957 Conference, 1994/1995 Constitutional Conference, 2005 National Political Reform to the 214 Constitutional Conference were all geared towards addressing and remedying these imbalances. Even former military Head of State Yakubu Gowon is now favourably disposed to restructuring of Nigeria. Labour and Employment Minister Chris Ngige says the Buhari government is not averse to restructuring. In the last one month, Nigerians across the different political divide have come to readily agree that except a proper re-structuring of the country is immediately carried out, the impoverishment of the Nigerian people and imperilling of their businesses and economic ventures will continue unabated. Just last Friday at the Tunji Braithwaite Foundation Symposium held in Lagos the voices calling for restructuring of Nigeria once again sounded. The theme of the symposium was: “Nigeria in Crisis: The imperative of a new Socio-economic Order in a Restructured Nigerian State. Speaker after speaker drummed in the point which the late Dr. Tunji Braithwaite had consistently advocated that unless Nigeria is restructured on the basis of true fiscal federalism, devolution of power on the principles of resource control and derivation, Nigeria can hardly come out of the woods.

In order words, all have accepted the imperative of political and economic restructuring of Nigeria. Restructuring of a country is not synonymous with secession and separatism. Rather, it is a cure for

RESTRUCTURING OF A COUNTRY IS NOT SYNONYMOUS WITH SECESSION AND SEPARATISM. RATHER, IT IS A CURE FOR SECESSIONIST AND SEPARATIST MOVEMENTS IN NIGERIA

secessionist and separatist movements in Nigeria. If you don’t want Biafra and Niger Delta’s militancy, then enthrone commutative justice. Those who play with the phrases “peaceful co-existence” and “unity of Nigeria is not negotiable” often forget that peace and unity grow from the crannies of justice. Justice comes first. You cannot illegally confiscate what belongs to me by virtue of justice and at the same time be preaching to me that I should embrace peace and unity. If you want peace and unity in Nigeria, adorn the breastplate of transparency and impartiality in the discharge of your duty. Remedy the lopsided political appointments in the country which are the causes of the secessionist and separatist movements.

Run an all-inclusive government. Like Caesar’s’ wife, live above board. Don’t tell me you are fighting corruption when corruption oozes out from your very nose.

Human beings can be so selfish and self-centered. For example, when the present Nigerian political adventurers were out of political power, they were beating the drums of war and clamouring for secession. One of them even threatened to personally draw blood.

Now after grabbing political power, the same crop of politicians who previously were calling for Armageddon have enclosed themselves in their own cocoons, refusing to listen to or accede to anything they think will upset their newly-found revelry. They have turned their back on the electorate.

But the truth of the matter is that nothing earthly is constant.

No condition, as first President of Nigeria, Dr. Nnamdi Azikiwe told us, is permanent. Change is constant. Restructuring, Abubakar Atiku tells us, is inevitable. Restructuring of Nigeria is not a singsong of the opposition. Neither is it a singsong of those who have lost out in the sharing of political spoils. It is not the clamour of the enemies of government either. Abubakar Atiku says it is something inevitable.

Therefore the Buhari government should set forth in earnest to restructure the country. What political and economic restructuring should the Buhari government immediately carry out? Speakers at Dr. Tunji Braithwaite Foundation Symposium and many Nigerians advocate that Nigeria be restructured on the basis of true fiscal federalism, devolution of power on the principles of resource control and derivation. In his incisive article entitled: “A case for political and economic restructuring of Nigeria” (THISDAY, August, 2016) Lagos State Commissioner for Energy and Mineral Resources Olawale Oluwo urges the federal government to avoid wastes, scrap or merge the existing federal structures especially the ministries; divest itself of some unwarranted administrative responsibilities and devolve more responsibilities to the federal

THE LITTLE THINGS THAT MATTER

Johannes Tobi Wojuola writes the essence of the change campaign is to do what is right Make Nigeria a better place through your positive, patriotic and right actions is the call.

You will never change your life until you change something you do daily.

-John Maxwell

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y friend hosted a symposium two weeks ago, and she asked me to be the MC. It was a first time request, so I reluctantly agreed. After giving my consent, I quickly asked about time and promptness of the event. She put the starting time at 9am, conceding all the same to the Nigerian factor on timing; the African time. I struggled to wake up as the sounds of raindrops held me back to my bed. Nonetheless, I was ready before 8:30am. But as a Nigerian, I called Debbie to ask if they had started and if people had started coming. Debbie’s reply was expected; “no, not yet, just one or two people”. It was an opportunity for me to do one or two things, targeting 10 am for my arrival. I got to the venue at about 10:45am as the event barely kicked off.

Debbie whispered, some people were here by 9am. I was shocked. Were they foreigners?

The notion of the ‘African Time’ is wrong. And we have allowed the aberration become acceptable almost to the point of culture. Timeliness is one of those things that matters greatly. The average event in Nigeria starts at best 30 minutes, some times an hour after the scheduled time.

Both the attendees and the organisers are guilty.

In most cases the organiser have in mind that his attendees would come late, so he sets the time for 9am with intent to start off at 10am. The attendees too know full well that their fellow Nigerians would not be there till 10 am. Guilty, most of us are. The culture of poor timing has

held Nigeria down for quite a while. And in my reflection, I concluded that the trend must change.

Change must begin with me!

Launched barely two weeks ago, the Change Begins With Me for me is long overdue. Some argue that the timing was not apt, and have consequently tossed the message and its pith; but better late than never. Launched in the high tide of events facing the country, the timing couldn’t have been better for me: Nigeria’s economy just got into a recession; the questions of restructuring and secession are being aggressively pushed; there is frustration around due to the hike in commodity prices; sectional divisions here and there. If anything would kick start getting us out of this fix, it is a positive mindset from every Nigerian towards Nigeria. There is the need for every Nigerian to see the vital role they must play in the wide spectrum of events. Society works like the human body – once every part is playing its role rightly, it would function properly.

I have read comments where some persons advocated that the Change Begins With Me campaign should start from the government, and its officials. The proponents of this argument seem to have missed the point. Change Begins With Me does not exclude the government or its officials.

During the launch of the campaign, Alhaji Lai Mohammed, the Minister of Information, stood on the queue while he waited to sign-in to enter the venue like every other participant. Some may say he did that for the cameras. My reply: can we all live and act for the cameras? And in the long run, get used to doing things the proper way?

Pretending to be ‘kind’, and after so much of the pretense, you indeed become ‘kind’.

Government officials at whatever level are part of the society – before becoming officials. They

were extracted from the same society and still remain a part of it. Change begins with them, too.

I have made it a personal habit never to beat the traffic light, no matter how late I am, or what the time of the day it is. Many are guilty of honoring traffic lights more as rainbows and passing them without any regard for what they stand for. These are the things every Nigerian must do for change.

The simple and little things matter. Honesty in all our affairs is germane. Tell the truth at all times and damn the consequences. Courtesy is important on this: a mind to genuinely say sorry; a cheerful thank you; a respectful phrase; please – they do not cost much but they matter in many ways.

Patriotism: respect for the country, in all that we do; regard for our national symbols and for security agents. Being ambassadors of the country in every way and wherever we are; are equally important.

Give what is due: pay for services rendered; say thank you – again; take the line, don’t shunt in a queue – at ATM’s, banking halls, in schools, at offices or wherever – it costs little, but it matters.

If anything has deprived Nigerians some goods, it is the little regard by many for the value of ‘honesty’. Indeed it is dishonesty and knavery that have caused leakages, costing Nigeria trillions of naira. The product of little regard for honesty are the bad roads we see, the derelict public hospitals around us – where equipment had been transferred for private use, or even never supplied; the dilapidated public schools lacking in infrastructure, and starved of lecturers and teachers who are either not in class or are not giving their best while in: cheating the system, in other words. The dishonest conduct of many

– leaders not excluded - has caused us greatly. If change must have meaning to every Nigerian, eschewing all forms of dishonesty should be a starting point.

Be your brother’s keeper: in all our conducts, have one another at heart. While we take decisions and act, let us think of the domino effect of our actions: what would be the outcome? Who would be affected by my action or inaction?

Every Nigerian must matter – not just to their families or friends who know them, but to every other, because like us, they too are Nigerians.

Take for instance the devastation and ruin being perpetrated by the Niger Delta Avengers. While they seem to be passing their message through wanton destruction of government assets, in the bid to call government’s attention to their plight, their acts have brought about widespread damage and harm not just to the larger economy and polity, but also, and importantly the environment they live in. Pipeline-bombings by the militants have caused monumental degradation to the farmlands and water bodies of the people of that region. At the end, everybody pays the price.

Change begins with me is not asking the Nigerian people to build roads, hospitals, schools or provide other social infrastructure for themselves, at least not directly. Its message is clear: change the little things that you do that have created chaos and made development almost impossible. Make Nigeria a better place through your positive, patriotic and right actions is the call.

The compound effect of the many little things that matter would give us the change that we clamour for – at least while President Buhari does his part, too.

Wojuola, a lawyer and member of the Abuja Global Shapers Hub, an initiative of the

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T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

EDITORIAL ENFORCING THE SPEED LIMITERS

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Speed limiters will help to address some of the challenges posed by speed-induced accidents

ome this Saturday, October 1, the Federal Road Safety Corps (FRSC) will commence the enforcement of the speed limiters on commercial vehicles nationwide. This follows several months of interactive sessions with stakeholders in the transport sector and the endorsement of the relevant committees of the National Assembly. While we hope that the introduction of speed limiters will help to address some of the challenges posed by speed-induced road traffic crashes in the country, we urge the FRSC authorities to intensify its efforts to ensure safety for the Nigerian road users.

As we have argued on this page, the relationship between speed and injury severity is particularly critical for vulnerable road users such as pedestrians and cyclists. For example, pedestrians have been shown to have a 90 per cent chance of survival when struck by a car travelling at 30km/hr or below, but less than zero per cent chance of surviving an impact at 45km/ hr. Pedestrians have almost no chance of surviving an impact of 80km/ INSTALLING SPEED hr. What this means LIMITING DEVICE WILL is that controlling HELP IN SLOWING DOWN vehicle speed can VEHICLES, REDUCE THE prevent crashes and NUMBER OF COLLISIONS can reduce the impact AND MITIGATE THE when they do occur, SEVERITY OF THOSE THAT lessening the severity of injuries sustained DO OCCUR by the victims.

In some low and middle income countries, speed is estimated to be the main contributory factor in about 50 per cent of all crashes. Excessive speeding decreases driver’s response time in an emergency and may increase the risk of a crash. It equally reduces his ability to manoeuvre safely on the road, extends the distance necessary to stop a vehicle. This is because, the higher the speed of a vehicle, the shorter the time a driver has to stop and avoid a crash. Speed also contributes to the severity of the impact when a collision does occur. For car occupants in a crash with

Letters to the Editor

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an impact speed of 80km/hr, the likelihood of death is 20 times what it would have been at an impact speed of 30km/hr.

For instance, the use of speed limiters in many countries, especially in Europe, dates back to February 1992 when a council directive required speed limiters to be fitted in certain categories of vehicles. By November, 2002, the European Parliament and the council directive extended the range of vehicles to be fitted, while in January 2007, it was extended to more categories of vehicles. Within Africa, Tanzania and Kenya followed suit in 2003, while Uganda in 2004, Zambia in 2006 and Ontario and Quebec took their turns in 2009.

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T H I S DAY

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

EDITOR-IN-CHIEF/CHAIRMAN NDUKA OBAIGBENA GROUP EXECUTIVE DIRECTORS ENIOlA BEllO, KAYODE KOMOlAfE, ISRAEl IWEGBU, EMMANUEl EfENI, IJEOMA NWOGWUGWU GROUP FINANCE DIRECTOR OlUfEMI ABOROWA DIVISIONAL DIRECTORS PETER IWEGBU, fIDElIS ElEMA, MBAYIlAN ANDOAKA, ANThONY OGEDENGBE DEPUTY DIVISIONAL DIRECTOR OJOGUN VICTOR DANBOYI SNR. ASSOCIATE DIRECTOR ERIC OJEh ASSOCIATE DIRECTORS hENRY NWAChOKOR, SAhEED ADEYEMO CONTROLLERS ABIMBOlA TAIWO, UChENNA DIBIAGWU, NDUKA MOSERI GENERAL MANAGER PATRICK EIMIUhI GROUP HEAD fEMI TOlUfAShE ART DIRECTOR OChI OGBUAKU II DIRECTOR, PRINTING PRODUCTION ChUKS ONWUDINJO TO SEND EMAIL: first name.surname@thisdaylive.com

t a recent session with major stakeholders in the transport sector, the Corps Marshal and Chief Executive of the Federal Road Safety Corps (FRSC), Mr. Boboye Oyeyemi identified excessive speed as accounting for most of the road traffic crashes across the country. Boboye’s presentation also grouped loss of control, tyre burst and dangerous driving which are directly linked to excessive speeding, as major contributive factors to road crashes recorded within the same period thus pointing to speed limit violation as a predominant challenge to collective efforts to stem the tide of avoidable crashes on the highways.

Incidentally, the issue of speed has been identified by the World Health Organisation (WHO) as a key risk factor in road traffic injuries, influencing both the risk of a crash as well as the severity of the injuries that result from crashes. In fact,the WHO and the Global Road Safety Partnership, in its publication, “Speed Management: a Road Safety Manual for Decision Makers and Practitioners” recommended that speed limits be introduced in every country as part of the global strategy to cut down road fatalities.

As the nation’s lead agency for road safety management and traffic administration, the FRSC believes that installing speed limiting device will help in slowing down vehicles, reduce the number of collisions and mitigate the severity of those that do occur.

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

BELLO AND THE FCT ADMINISTRATION

ith the hullaballoo occasioned by the recent declaration of the Nigerian economy as being in recession, a lot of people appeared to have become disillusioned about the change mantra of the All Progressives Congress-led federal government and the workings of its institutions like the Federal Capital Territory. Add this to the morbid mindsets for which everything APC or President Buhari is a no-no and you will find yourself dealing with very bizarre cynicism. Be that as it may, and recalling that truth remains incontrovertible no matter how it is shredded, I daresay unequivocally that the FCT under Alhaji Musa Bello is working! Those who expect to see the usual propagandist bang of the olden days certainly would be disillusioned by the calculated beeps of the present times. For one who has been able to breach the wall of prejudice, hatred and bitterness, it is more than obvious that the present leadership of the FCT has recorded remarkable milestones. However, for the benefit of doubt, it is not out of place to draw our attention to some faint idea of the size of the distance already travelled by this new leadership and the direction to which it is facing. It is such an irony how people who do not know about a thing and have no desire to know could attempt to pass judgment.

Abuja, the Nigerian capital city was envisioned as a new capital city that will be liveable, comfortable, healthy and naturally rich for urban development. Therefore a minister who is worth his onions would focus efforts on influencing contexts in which the dreams and aspirations that underpinned the evolution of Abuja as the Nigerian capital city could be realised. Unlike previous ministers of the FCT, Alhaji Mohammed Musa Bello came on board as Minister of the FCT at a time when the city was quite vulnerable as a result of over-stretched infrastructure that needed

urgent replacement, a workforce whose morale was lowered by wanton negligence and poor conditions of service, a treasury depleted from reckless financial exercises and corruption, a general lack of institutional ethics and values, and a staggering economic disequilibrium.

The minister is a man noted for his consistency of character, dedication and integrity. Many have ascribed mellow wisdom to him and that is just as well since the man has proved that in his uncanny juggling of nuances and pragmatism so far in guiding the city to the path of redemption.

This administration has identified a responsible and forward-looking fiscal management well-conduced to a strategic deployment of resources to meet the present and future needs of the city. Ensuring high environmental standard is paramount to the strategic development of the FCT and the minister has ensured this objective remains one of high priority, in addition to ensuring that the workforce is motivated for achievement. This posturing of the minister was recently underscored by the unprecedented bailout of N1.6 billion granted to the area councils in the FCT for the payment of staff salary arrears and other related benefits. The minister who has made great showing of his ambition to strengthen the area councils for an inclusive effort towards moving the FCT ahead on a sustainable course of growth has demonstrated that he understands well that when it is time to actually prioritise our priorities and optimise social outcomes for the people within the available resources. With much focus on infrastructural development and people’s well being, the minister certainly assuredly knows what is critical at this material time.

The minister’s planned launch of community development scheme is a major milestone of the FCT admninstration. Bello dropped the hint recently while inaugurating a borehole project executed by some corps members serving in the FCT as part of their community development efforts. In a

reaction to the corps members’ progressive gestures, the minister restated the commitment of the FCT Administration to opening up the development of rural areas with basic and adequate facilities to make life a lot easier for the rural dwellers. In a bid to re-echo the change begins with me campaign of the PMB administration, the minister who believes that the people themselves must take ownership and be involved in government for an effective tackling of the myriads of social, economic and political challenges confronting the nation called communities to come together to initiate projects, for government’s partnership.

Another promising initiative of the present FCTA is the ambitious plan to build 400 units of houses every year to close the housing deficit and provide affordable accommodation for its workforce. This is a direct impact project which if implemented could go a long way in alleviating the housing needs of the FCT residents. This project has been provided for with a substantial amount of money in the FCT 2016 statutory budget, thus guaranteeing immediate takeoff. The minister’s humane nature was once again laid bare during the launch of the programme. He had remarked that “before I was appointed minister, I had the impression that everybody in the FCTA was also a landlord. But to my surprise, I realised that a number of the staff, particularly those in the middle level and junior cadre, do not own property in the city. Some of them have worked here for so many years, processing land applications, processing files, giving approvals, providing services, but they have been tenants in this city. Some of them never had the opportunity of occupying the houses that were sold some years back.”

This is a rare gesture of empathy and genuine concern for the workers of the FCT whose cooperation and commitment the Minister recognises as a critical success factor.

Jamila Musa, Abuja

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T H I S D AY WEDNESDAY SEPTEMBER 28, 2016

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T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

MIDWEEKPOLITICS

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

THE NEWSMAKER

Now That Bello’s Battle is Over With last week’s Supreme Court judgment, which upheld the mandate of the Kogi State Governor, Alhaji Yahaya Bello, it is time all hands must be on deck for good governance, writes Yekini Jimoh

K

ogi State was created in 1991 and in such a short while, she has had interesting democratic evolution. Her first democratic election held in December of same year between the late Dr. Steven Makoju Achema and the late Abubakar Audu. Audu won and despite the pressure, Achema did not challenge the outcome.

In 2003, another election held and former Governor Ibrahim Idris won. Audu too accepted defeat in good fate.

In 2007, Audu was excluded from the race and he challenged it. The election was annulled and a rerun ordered. A rerun election was conducted and Idris was re-elected. But this time, Audu challenged it and went all the way to the apex court but lost. When it was another bout of election in 2011, Alhaji Jibrin Isah Echocho won the primaries of Peoples Democratic Party (PDP), but Idris had tenure elongation in lieu of the rerun that would later stagger the state’s election calendar. By this action, however, Echocho’s mandate was scuttled for Captain Idris Wada.

Echocho challenged the outcome and also went all the way through to the apex court but lost. In 2015, Audu returned to the turf and was coasting home to victory when death knocked at his door. He died leaving behind a constitutional crisis. There was a lacuna and his running mate, Hon. James Faleke and former Governor Wada challenged the outcome of the election, with the Independent National Electoral Commission (INEC) joined in the suit. But Bello who was appointed to replace Audu won.

Certainly, the long period of litigation had taken its toll on governance in the state and the expectations are high despite the inclement economic situation across the country. This is why people think there should be no time-wasting for Governor Bello except to get down to brass tacks and give all that he promised during the “leftover campaign”.

Speaking to THISDAY, Sunday Saki, an indigene of the state said the fact remained that “our common wealth has been expended on litigation, while governance has suffered in the last 10 years. Now that the case has been decided as expected, we have a chance to get things right.

If we fail it means that our seriousness is in

Kogi State, no doubt, needs some radical socioeconomic interventions rooted in the urgency of immediacy and in the immediacy of urgency. Infrastructure, institutional projects and salaries, amongst other critical areas, need the swiftest attention. The governor, many would expect, should woo his foes to his camp especially those that belong to the Audu/Faleke camp in collective interest

Political Notes

Is Orji Hallucinating?

Bello...let the work begin

doubt.”

Kogi State, no doubt, needs some radical socioeconomic interventions rooted in the urgency of immediacy and in the immediacy of urgency.

Infrastructure, institutional projects and salaries, amongst other critical areas, need the swiftest attention. The governor, many would expect, should woo his foes to his camp especially those that belong to the Audu/Faleke camp in collective interest.

The governor had from day one, anchored his emergence on divine mandate. That, perhaps, has been vindicated and his office validated by judicial fiat. Since practically everyone believes in God’s supremacy, and the collective beliefs not vitiated by politics and whimsical interests, the people of Kogi should rally round him for utmost discharge of his promises for the state.

Former Governor Wada, for instance, has resolved to offer support to Governor Bello.

According to his Media consultant, the Chief Communications Manager, Mr. Phrank Shaibu, “We have resolved to do our best in whatever way possible to offer support to Governor Yahaya Bello for the uplift of Kogi State.

“Without doubt, we shall serve as the polished metal for the compunction of government with the quality of opposition we will provide in the days ahead but it is our prayer that Governor Yahaya Bello and his aides will appreciate our advice and proposals in the overall interest of the Kogi people”.

According to him, the decision of the apex court brought to an end, a long drawn legal battle, not because he just wanted a second term in office at all cost but to serve as a historic denunciation and a befitting dirge for electoral fraud.

But Faleke, on his part, said he had no regrets challenging the decision to declare the election inconclusive as the step was taken in good faith to protect the interest of the over 240,000 electorate that voted for the Audu/Faleke ticket in that election. He said it would amount to a betrayal of the sacred trust of the people, who reposed implicit confidence in the Audu/Faleke ticket not to have defended the sanctity of their votes up to the apex court.

“But let it be stated here that we have no regrets challenging the declaration of our election as inconclusive by the Independent National Electoral Commission (INEC). What we did was to defend the votes cast for Audu/Faleke by the over 240,000 electorate on November

21, 2015.”

Some other cross-section of the people, who spoke with THISDAY, said the outcome of the judgment was a welcome development.

A former acting governor of the state, Chief Clarence Olafemi, said now that the judgment was over, the governor should reconcile with the aggrieved members of All Progressives Congress (APC).

The APC chieftain said the governor needed to sit straight now and avoid anything that would bring him down, stressing that many people were left outside, and he needed to allow those genuine people come into the train.

Olafemi, who is also a member of APC’s Board of Trustees (BOT) however advised the governor to dissolve his cabinet and bring in those that have the capacity to work with him. He also mentioned that the governor should embark on massive development across the state and accommodate Audu/Faleke’s group into his administration. Also speaking, deputy chairman of the PDP, Chief Samuel Abenemi, said the party has accepted the verdict but advised the governor to see himself as a governor of all segments in the state. He urged him to employed quick approach that would bring succor to the people of the state, pointing out that the party has asked his members to be law-abiding and support the present administration, even as it awaits the reason for which the Supreme Court gave its verdict.

Spokesperson of PDP in the state, Mr. Bode Ogunmola while speaking with THISDAY said they had nothing against the governor but should increase his capacity to learn quickly and improve on good governance, which he noted had been lacking in last eight months.

Although the opposition, both within and outside the APC had exhausted their options by pushing the litigation through to the apex court, the judgment thereof has also left them completely helpless, hence their somewhat contrite approach to the Bello mandate.

But whatever might have informed their transformation homily to the governor, going forward, they had a point. The break is over and Bello must fasten his seat belt and get cracking. There would not be excuses on no account when the day of reckoning comes.

This is why his approach must be inclusive and without bitterness. It is only he can be more than a conqueror.

Former Abia State Governor and Senator representing Abia Central, recently slumped into the abyss, when he tried, although resentfully, to rewrite history. He said his predecessor did not make him governor. Really? It is good to disagree in politics. Indeed, politics is about conflicts and resolution. But the kind of disagreement that stands truth on its head is both dishonourable and not dignifying.

What happened? A chieftain of the Peoples Democratic Party (PDP) in the state, Chief Uche Akwukwuegbu, otherwise known as Bawas, had hosted a political gathering, where Kalu was surprisingly the star guest. Bawas seized the occasion to apologise to the former governor for how their people treated him having made their son, Orji a governor.

Kalu, on his part, said he had since forgiven his successor and had moved on but promised never to have anything to do with him again.

Of course, Orji felt the urge to respond and in a statement by his media adviser, Mr. Don Norman Obinna, said pointedly that Kalu was not the person who made him governor but God. Except for a few instances where the Bible recorded that God personally showed up albeit in different forms, to people or spoke to them, He had never physically come down to execute anything on earth. It had always been through people. So, in identifying with his story, yes, God made him Governor but who did God use?

Except otherwise hallucinating, Orji just exhibited sheer dishonesty and the spirit of ingratitude. Such a spirit is not of good leadership and perhaps, Orji has never come across as one.

He should learn to be grateful and no matter how hard he tries to stand truth on its head, Kalu made him governor, against all odds and in a most difficult and unpredictable circumstance. He’d better get off that high chair and be true to type.

A Defective Campaign against Ize-Iyamu Edo State’s most talked about governorship election is today and all things being equal, a winner will emerge latest tomorrow evening or by Friday morning after all the counting and collation must have been concluded. Suffice it to admit that it is one election, whose campaigns come across as one of the dirtiest in recent time, in the bid to outdo one another.

But one thing has been mischievously untoward in the rhetoric so far. The attempt to tie the PDP candidate, Mr. Osagie Ise-Iyamu to the party’s inglorious past is too cheap and evidently defeatist. It is true that Ize-Iyamu was at different times, Chief of Staff and Secretary to the State Government, where he discharged the responsibilities of those offices as demanded of him. But how was he directly responsible for the misdemeanor of the executive?

The same Ize-Iyamu was good enough to cofacilitate Governor Adams Oshiomhole’s emergence as governor and even led his re-election campaign. Then, no one remembered he worked with former Governor Lucky Igbinedion. But now that he wants to be his own governor, everyone in the ruling party realises he was of the PDP stock and directly connected to the Igbinedions. It is nothing but defeatist. It shows he is the man to beat and that the election is probably his to lose.

When Igbinedion was governor, one of the closest persons to him was Oshiomhole and not just that, he was said to have benefitted immensely from that friendship. But that didn’t matter when he wanted to be governor and no one remembered this for a fact.

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

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T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

ONTHEWATCH

MIDWEEKPOLITICS

Nasarawa’s 2019 Succession Politics Although 2019 is some two years and a few months away, the prelude to the succession battle in the state has begun in earnest, writes Adams Abonu

I

n what appears to be the realignment of forces ahead of the 2019 general election in Nasarawa State, the political ante in the state is gradually rising.

While it is agreeable that the next electoral circle is still many months away, political players have continued to show their dexterity for making deals while those perceived to be politically ambitious have not relented in their bids.

THISDAY investigations indicate that several factors would be considered in the run up to 2019 viz-a-viz the power of incumbency of the ruling All Progressives Congress (APC), the demographic agitations and the prospects of opposition parties in the state forming a common front to give the ruling party a run for its money.

Nasarawa’s Brief Political History Since the creation of the state on October 1, 1996, by the late General Sani Abacha junta, the state has produced three governors in the persons of Dr. Abdullahi Adamu, now a senior senator, who served the state from May 1999 to May 2007; Alhaji Aliyu Akwe Doma, who served a term in office between May 2007 and May 2011 after he was defeated by the incumbent, Alhaji Umaru Tanko Al-Makura.

Both Governors Adamu and Doma served on the platform of the Peoples Democratic Party (PDP) while serving Governor Al-Makura was elected on the platform of the Congress for Progressive Change (CPC) before joining others in the merger that brought about the APC in 2014, after which he was reelected.

While Senator Adamu is of the Nasarawa West Senatorial Zone (the Keffi extraction), both former Governor Doma and incumbent Al-Makura are from the southern senatorial zone (the Lafia extraction) leaving the Akwanga zone – the Northern senatorial zone – agitating that one of their own be allowed a fair share of the gubernatorial pie.

Instructively, Senator Solomon Ewuga fiercely contested against Governor Abdullahi Adamu in 1999 and again in 2003. Labaran Maku, was variously commissioner and Deputy governor under Adamu also contested against Doma in 2007 and Al-Makura in 2015. Both Ewuga and Maku are from the Akwanga Extraction.

The Battle Towards 2019 Basically, the issues that would dominate the 2019 governorship election in 2019 are “rightful” agitations for power rotation by the Akwanga zone, the socio-economic reality prevailing in the state at the time of the election and the capacity of the ruling party to expectedly use the incumbency weight available to convince the electorate on why they should still support the party at that level.

Likely contenders from Akwanga If the prevailing political architecture in the state favours the aspiration of the northern zone, the most visible politicians from the zone in the persons of Senator Solomon Ewuga and Mr. Labaran Maku would be most likely the frontline contenders,” according to Luka Bala, a grassroots politician interviewed by THISDAY in Akwanga.

Bala added that “both (Senator) Ewuga and the former minister Maku have the needed political clout and experience to be governor of a state in dire need of development like Nasarawa. Both of them are strong politicians with reasonable following and their supporters must prevail on them to contest.

“But for many of us from the zone, Maku is our likely collective choice as he is seen more as the champion of the masses and the people will rally around him. Maku has been seen as much closer to the people. All our people will have a say in this issue when the time comes.”

Senator Ewuga was a deputy governor to then Governor Adamu between 1999 and 2002 and represented the Northern zone in the senate between 2007 and 2011. Maku rose through the political ranks from being a student union leader in the University of Jos in the 80s to serving as commissioner in various ministries before becoming deputy to Senator Adamu in 2003. The renowned

Almakura...can he dictate the pace

journalist was later to be appointed Minister of Information by former President Goodluck Jonathan.

APC’s Incumbency and 2019 Equation The power of incumbency in the ruling APC political arsenal is an added advantage to the party’s chances in who succeeds Governor Al-Makura in 2019. The ranks of the party

If the prevailing political architecture in the state favours the aspiration of the northern zone, the most visible politicians from the zone in the persons of Senator Solomon Ewuga and Mr. Labaran Maku would be most likely the frontline contenders,”according to Luka Bala, a grassroots politician interviewed by THISDAY in Akwanga

enlarged recently with the defection of notable political leaders like Senator Abubakar Sodangi and others with their followers and this portends some good for APC. However, a possible clash of interest might put the party in precarious circumstances giving rooms for opposition parties’ incursion.

“Ta’al (as Governor Al-makura is popularly known in the state) is likely going to anoint a candidate and this might not be the choice of the majority of supporters of APC. He is a man, who claims his own right in political leadership in this state and the likelihood of his choosing one of his surrogates for the position of governor is very high.

“But the party structure is under the control of Senator Abdullahi Adamu, whom many view as the father of Nasarawa State and many people today are still in APC because of the former governor’s sense of carrying everyone along.

“With Al-Makura’s administration perceived to be lacklustre and with burning issues like grazing reserves coming up, Al-Maura could be the undoing of our party in Nasarawa State.

“If Al-Makura wishes to make Ta’al’s wish to see APC in Government House come 2019, he must allow Senator Adamu rally the people for the party to succeed,” a source within the APC, who prefers anonymity owing to the “sensitive” nature of the subject told this reporter.

Senator Adamu enjoys wide political patronage in the state and is perceived as the moral conscience of the political leadership of the state.

How the Opposition Parties Stand The two major opposition parties in Nasarawa

State – APGA and PDP –have unequal chances in the race towards 2019. While the PDP has a sizeable proportion of elected positions like two serving senators, 3 members of the House of Representatives and six members of the State House of Assembly from its fold, it remains to be seen how the party would manage the various in-house squabbles that tend to make joke of her chances.

“To us in Nasarawa State, APGA is the only opposition party in this state as it has been the party that continuously called attention to issues of development. PDP cannot seem to manage their relative advantage and APGA has been seen as the party of choice for those disenchanted with Al-Makura’s performance in APC. “Let me also mention that there are sizeable Igbos in the state especially in the Karu area, who are very sympathetic to APGA and could greatly influence the outcome of coming elections in Nasarawa,” Ademu Loko, who was candidate for House of Representatives in the 2015 election, said.

Many people in the state are of the opinion that for the opposition to triumph in 2019, they should rally around the political capital of Labaran Maku, who enjoys wider political reckoning especially within the Eggon nationality that is in the majority across the state.

The Choice Before Nasarawa For the people of the state reputed to be “Home of Solid Minerals,” the choice to elect a governor, who would bring on board, the standard of governance set by Senator Adamu, known as the “Nagari Standard” is before them as Nigerians watch to see how they make this choice.

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016 WEDNESDAY, SEPTEMBER 14, 2016, • T H I S D AY

20 20

FEATURES

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

AUN to Children inCrimes N’East A WarGives ChestHope against Maritime

Daji Sani writes thatwrites the American of Nigeria in Yola, has the Chiemelie Ezeobi on the University Nigerian Navy's acquisition of used 60 gunboats, to ‘Technology for All’ project to train thousands children inpipeline the boost its warEnhanced chest to Literacy tackle maritime criminalities, especiallyofmilitancy, insurgency and ravaged North-east vandalism piracy on the nation's waterways

W

ith over 3,000 creeks and inland waterways in Nigeria, some of which had remained unpatrolled and out of reach to the security forces, it was unavoidable that crime would foster in such areas. An example that readily comes to mind is the cartel of vandals that had taken over such creeks in Arepo, Ishawo, Awawa and Igando, in both Lagos and Ogun States. As the military forces were wiping out the vandals, they were going in deeper into the creeks and mangroves, where the navy's patrol boats find difficult to access. Their reign of terror lasted for decades until the recent Operation Awatse, an Hausa word for 'Scatter' was launched.

Again, it took the intervention of the airforce air power to destroy the camps and enclaves of the vandals, who had hitherto held the area hostage. This was because the creeks were designed in such a way that was inaccessible to bigger gunboats owned by the navy. Most of the creeks can only be accessed using smaller dugout boats and canoes, hence the need for the navy to up its game.

Not tosection be forgotten is the various unaccessed Demonstration of the gunboatsin Yola..

A cross of IDP children and pupils who participated in the TELA programme creeks that dot the Niger Delta region, which had fostered the issue of militancy that Nigeria is presently battling to curb.

It was as a result of these challenges that the Nigerian Navy recently took delivery of 39 extra newly produced gunboats and the second indigenous Seaward Defence Boat (SDB) built locally by the Nigerian Navy (NN), to fight militancy and other maritime criminalities. Aside the boats, the navy also inaugurated 45 operational vehicles to be shared amongst commands and units of the NN, to aid operational efficiency.

The acquired maritime platforms include 30 Epenal boats, three Wave Riders, six Arrow Heads, as well as NN pride, NNS KARADUWA, a 28.9 meters SDB, fabricated and built indigenously by personnel of the navy. These 39 were to back up the former ones inaugurated earlier this year, summing it up to 60 new gunboats in the fleet of the navy to effectively deal with the scourge of oil theft, sea robbery and piracy.

Security experts said the navy would require a minimum of 40 of these classes of boats on patrol everyday in order to dominate the vast expanse of the nation's territorial waters especially in the current emerging security challenges in the maritime domain. Though the boats are Professor Jacob Udo-Udo of AUN small, their small natureJacob is what is (middle), needed toHajiya Nafisa Ado, flanked by the pupils gain access to the creeks and its fast nature is another plus. They are designed to undertake and all Colleges of discussing Education inthe the state Thesecurity education in the interdiction, North-east such taskssystem as maritime Onyenokwe (standing), with girls to attend series of meetings to mark the of the country has suffered grave damage anti-smuggling, anti-illegal bunkering and end of the first quarter of ‘Technology because of the Boko Haram’s incessant atsea robbery.

Enhanced Victoria LiteracyIsland, for All’ (TELA) project tacks and unrelenting poverty in the region. Dockyard, Lagos.

Given the and are weather, part of activities mark the Children in their thousands, particularly those clement The Preview of the Inauguration the event also was to held under World Day. displaced from their homes and families In line with naval tradition, every new boat is the clearLiteracy blue skies with canopies as shade.

However manywas of them suggested that by the violence have nobefore school attend inaugurated and dedicated it istodeployed The event, which anchored by the Comand teachers to attend (AOR). to them. to its no Area of Responsibility Thus, on mand Information Officer of Western Naval Apart from the devastation brought about Command, Lieutenant Commander Chinwe that fateful Wednesday, all roads led to Naval by insurgency, stakeholders have also raised Umar, was kick started by the arrival of the the alarm that the astronomical growth in special guest of honour, the Minister of Defence the population of Nigeria is another serious (MOD), Mansur Dan-Ali who inspected the threat to education if something is not done quarter guard mounted in his honour. urgently to address the challenges which Afterwards, the entourage moved to the jetty they described as more deadlier than Boko of the navy dockyard where NDL Admiral Haram.

Superintendent showed the guests the processes Stakeholders in the education sector involved in constructing the SDB. Then the Chief within and outside the North-east region of Naval Staff, Vice Admiral Ibok Ette-Ibas and beyond recently converged at the made his welcome remarks before the act of American University of Nigeria (AUN), Yola, dedication of the boats by the chaplain and the the capital of Adamawa State, to deliberate Imam, Lieutenant Commander NI Dakwo and on workable measures to adopt to redeem Lieutenant Commander RK Rumah, respectively. the situation.

Then the MOD formally inaugurated the The stakeholders were drawn from School boats before dovetailing into his remarks. The of Legal Studies, Adamawa State University entire guests then moved to the jetty for a brief Adamawa State Universal Basic Education demonstration by the boats. After that, the guests (ADSUBEB), Ministry of Education, Christian embarked on several boats for a five-minute Association of Nigeria (CAN), Muslim journey across the water to Nigerian Navy Ship Council, traditional rulers, USAID, AUN (NNS) Beecroft parade ground in Apapa for

The boats are fitted with appropriate weapons. They also benefitted from a better antiballistic protection...

I am hopeful that the boats being launched today would further boost the ongoing patrol efforts in the various rivers and creeks of the country

AUN has brought laughter to the faces of many hopeless people who were displaced by the insurgency, it has also given out scholarship to some IDPs and donated a lot of relief materials to IDPs and over 22,000 children have benefitted from its TELA project

in addressing these challenges, the government should look beyond the conventional classroom setting which according to them, theinauguration infrastructural in most of Nigeria the of facilities the 45 vehicles. schools are notoccasion enoughwere to contain all the At the August the Minister of population of children seeking enrollment and Defence, Mansur Dan-Ali, who was represented those forced out Secretary, of schools by the of insurgency. by the Permanent Ministry Defence, Representative of Sheni; USAID, Hajiya Nafisa Ambassador Danjuma Chief of Defence Ado, whileGeneral speaking at anOlonisakin; event organised by Staff (CDS), Gabriel the Chief to mark the World Literacy Day,Ibas; said ofAUN the Naval Staff, Vice Admiral Ibok Ette children with no education, no prospects, no the Flag Officer Commanding, Western Naval hope makeRear easyAdmiral targets Fergusson for terrorist recruiters Command, Bobai, who andthe other criminals. all hands must was chief host forTherefore the occasion. beAlso on deck to were save the Chief situation from getting present of Training and out of control.

Operations (CTOP), Rear Admiral Adeniyi According to her, theTraining AUN has become Osinowo; the FOC Naval Command a rally point stakeholders and state (NAVTRAC), Rearfor Admiral Ifeola Mohammed; government, adding that Naval the ‘Technology the Admiral Superintendent, Dockyard Enhanced Literacy for Adetokunbo All’ project funded Limited, Rear Admiral Lateef

by USAID has theofcapacity to Commodore address the Akintola; the Director Information, challenges in the region Chris Ezekobe;ofAireducation Officer Commanding (AOC),if adequate attention is given to theAir project Nigeria Air Force Logistics Command, Vice by the Sani Nigerian government.

Marshal Ahmed, who represented the Chief AdoStaff, wasAir optimistic theAbubakar; TELA project of Air Marshalthat Sadiq the General Officer Commanding (GOC), championed by the AUN will 81 goDivision a long Headquarters, Major General Isidore whoof way not only at improving the Edet, quality represented Chief Army Staff, Lieutenant education,the but alsoof by educating a large Tukur Buratai; the Assistant Inspector General number of children at a time than class room of Police,because Zone 2, of AIG Abdulmajid Ali, whois setting how the programme

designed.

Apart from expressing satisfaction on the methodology used by AUN in handling the project,theAdo also lauded content represented Inspector Generalthe of Police, of theIdris; curriculum adding that it Nigerian was well Ibrahim Lagos Commandant of the researched and Defence developed.

She commended Security and Civil Corps (NSCDC), Mr. the university’s professors coming Tajudeen Balogun, amongst otherfor senior officers.up with such learning materials which she said within a shortest The Navy's Pridetime children who were exposed the material easily.

Althoughtoother gunboats can wereread inaugurated that of thethe duration thatAdo samewho day, explained the focal point day wasof theNN TELA project months that the pride, which was is the1228.9 metersnoted Seaward because of (SDB), the impact theNavy programme has Defence Boat Nigerian Ship (NNS) created among children of theindigenous state, the KARADUWA, which is the second AUN has askedafter for NNS moreAndoni. three months to boat built locally, get more stakeholders and rich itindividuals Therefore, during the inauguration, was with to and be involved projectmoved with the aim joy pride that in thethe entourage to the to expand the to other states. jetty to inspect theprogramme nation's second indigenous Quality Assurance but The well Director improved of boat.

Thus, the entourageof Adamawa State Universal Basic Education moved to jetty of the navy dockyard where (ADSUBEB), Mallam Saidushowed Komsari, the NDL Admiral Superintendent the said guests TELA project was anineye opener tothe theSDB. state the processes involved constructing government thebysociety as he extolled Crafted withand pride the Nigerian Navy the institution for bringing development engineers and architects, it's inspired by the Riverto the state her SDB, activities its host Town Class,following as is the first NNSin Andoni, incommunity. line with NNS Yola and NNS Brass. It was inaugurated after NNSthat Andoni was Komsari four who years acknowledged the World inaugurated in 2012.

Literacy Day has never been celebrated in Given thethis Cabotage Act, the NNS KARADUstyle like year’s celebration, said that

21

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

fEATuRES

Pupils of Wuro Hausa Primary School ,Yola, who participated in after school programme of TELA

The AUN family

TELA programmes have made it possible to celebrate the World Literacy Day at the same time across the over 423 learning centres identified for the programmes in the 21 local government areas including the Internally Displaced Persons (IDPs) camps.

“Within a shortest period of time the TELA programmes have exposed our short comings and I am going to do memo on this effect to the state government to see how we can help children who have no access to education read and have knowledge of numeracy skills,” Komsari said.

He said he believed that quality and access to education should be extended to all adding that the programmes is very effective and it has been tested. He appealed that Technical Working Group be formed to sustain the programme.

The Paramount Ruler, The Lamido of Adamawa, Dr. Mohammedu Barkindo Musdafa, said the institution has lived up to its name as a development university following its activities in the North-east.

“AUN has brought laughter to the faces of many hopeless people who were displaced by the insurgency, it has also given out scholarship to some IDPs and donated a lot of relief materials to IDPs and over 22,000 children have benefitted from its TELA project.”

Over 2,500 beneficiaries mainly children were brought to AUN to test their reading capacities before stakeholders and the students did excellently well

The Lamido called on Nigerians especially the people to always live peacefully with one another because God did not make mistake at creating and bring us to coexist together.

Mr. Liman Audu, Grant Administrator, Office of the President of AUN, said TELA project implemented by the AUN was funded

by USAID to reach over 20,000 mainly out of school children aged 6-17 years old across 21 local government areas of the state through well prepared and broadcast radio lessons to enhance literacy and numeracy twice each week for 30 weeks.

Audu said the institution has collaborated with the Adamawa State government from the inception of the project and have trained all the quality assurance staff of the Adamawa State Universal Basic Education (ADSUBEB) across 21 local government area as facilitators in the over 423 identified learning centres.

“Our monitoring team goes for follow-up visits to be sure that right thing is done,” he added.

According to him, the radio lessons are

supplemented with face-to-face instruction using tablet computers installed with apps, elearning resources and video learning content in English and local languages. He added that where schools are still functioning at some level, there are after school tutoring using tablets to further to compliment radio instruction as well as reading camp to promote reading.

Audu said the TELA project has four components, the radio instruction target of 20,000 vulnerable, at risk, orphaned and IDP children within communities, while the afterschool tutoring is implemented in four selected primary schools close to AUN and 100 AUN students who had enrolled in community development (CDS) classes are used as tutors.

He said the third component is Feed and Read, 100 almajiris are feed one meal per a day for seven days per week and two hours of literacy and numeracy instruction, three times per week and the last component is Reading Camps using intensive literacy coaching for five days using storybooks, workbooks, e-books and apps on tablet computers for at least 1,500 children and follow-up activities such as distribution of reading materials in English and Hausa languages.

For sustainability, the institution has trained stakeholders from colleges of education and the Adamawa State University and it said it had involved the state government from the beginning and have been using qualified and trained staff of ADSUBUB as facilitators in all the learning centres identified, while AUN plays the monitoring and evaluation roles.

AUN also provided security for children to make sure they are safe back home and also check the pupils to make sure that none is recruited by the insurgents to detonate bombs at the centres especially the one at AUN’s premises. AUN has given scholarships to some of these children who are displaced.

Professor Jacob Udo-Udo Jacob of AUN, who is one of the facilitators at the one day workshop convened at the e-library of the institution to showcase before stakeholders of the successes of the TELA projects within one year of its existence in Adamawa State.

Jacob said the TELA programmes were not just designed for reading and numeracy only it was designed to increase the desire for learning in children such as the use of storybooks written by AUN students contenting names of actors that the children are familiar with.

He further explained that for the radio lessons they were designed in forms of songs and drama to improve the reading skills in children.

Jacob said after evaluating the project from when they started till the time it is supposed to elapse, beneficiaries who couldn’t read at the inception of the programmes could read and even do some basic calculations in numeracy as he added that their target was 50 per cent but they got over 50 per cent in all the components of the TELA project.

Also speaking, Professor Grace Malgwi, a professor of English at AUN, said the goal of TELA is to fortify academic foundation of the children where they are taught foundation skills on literacy and numeracy .

She said they were taught phonetics in English Language which aid the children to start reading themselves within the shortest period of time adding that the reason why pupils at the Nigerian public find it difficult to read is because they are not exposed to various type of sounds in English.

A cross section of beneficiaries who spoke to THISDAY at AUN, said they can now read and do some mathematical calculations following their exposure to literacy and numeracy. They expressed joy and satisfaction saying they could read and write now. Parents also expressed joy and satisfaction over TELA programmes which they said have given their children hope of a bright future.

One of them who identified himself as Mallam Musa, said they couldn’t send their children to school again because they were ravaged by the insurgency and flee for their lives. “Thank God for AUN and the former Vice Presendent Atiku Abubakar for establishing the institution, it has helped us.”

Over 2,500 beneficiaries mainly children were brought to AUN to test their reading capacities before stakeholders and the students did excellently well.

T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

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IMAGESOFYESTERDAY

L-R; Executive Producer, 76. and MD/CEO Adonis Production, Adonijah Owiriwa; Regional Director MNET West, Wangi Mba-Uzoukwu and Executive Producer, 76 and Founder, Princewill’s Trust, Prince Tonye T.J.T Princewill .at the World Premiere of 76 held in Toronto...recently.

L-R: Executive Director, African Health, Empowerment and Advancement Foundation (AHEAF) Mrs. Solape Iyoho; Permanent Secretary, Ministry of Economic Planning and Budget, Ekiti State, Mr. Olusesan Alabi; Regional Programme Officer, UK-AID, Mrs. Margaret Fagboyo; Chief Responsibility Officer, (CRO), Mothergold Consulting, Dr. Sina Fagbenro-Byron; and CRO, Penyl Consult, Mr. Bunmi Oyeleye, during the 2nd Regional Conference on the Role of Private Sector in Building Social and Economic Resilience in South West Nigeria, in Ado-Ekiti...recently

.L-R: Director, Technical Standard and Network Integrity Nigeria Communications Commission (NCC), Engr. Ubale Maska; Executive Vice Chairman/CEO, NCC, Prof. Umar Garba Danbatta, and Director, Public Affairs, NCC, Mr. Tony Ojobo, during media interaction at the NCC headquarters in Abuja..recently … enock reuben

L-R: A partivipant, Esther Odunlami and the MD Sesema PR, Tampiri Irimagha-Akemu at the Corporate Communications Interactive Forum (CCIF) organised by Sesema PR in Lagos....recently

Group Photo Editor: Abiodun Ajala

L-R; Lagos State Commissioner for Civil Service Commission, Hon. Taolat Wasiu; Lagos State Commissioner for Energy and Mineral Resources Mr. Wale Oluwo ; and a Staff, Mr. Felix Ikpe, during the commissioning of C &S Church Road, Odo-Egiri, in Eredo Local Council Development Area, as part of the 114 road projects

by Lagos State government, in Epe Lagos…recentlyy kola olasupo

L-R: General Manager, DStv Media Sales, Nigeria, Kholeka Maringa; Chief Commercial Officer, DStv Media Sales, Fahmeeda Cassim-Surtee; CEO, APCON, Alhaji Bello Kankarofi and Director, DStv Media Sales, Africa, Cheryl Van-Rensburg, during the DStv Media Sales Primary Research Information and DStv Viewership Pattern, at Protea Hotel, Ikeja GRA, Lagos....recently kola olasupo

L-R: Executive Manager, Stakeholder Relations, Nestle Nigeria Plc, Mrs. Marie Owoniyi; Ogun state Commissioner for Education, Science and Technology, Mrs. Modupe Mujota; Marketing Manager, Nestle Water, Mrs. Gloria Nwbuike and Director, Social Mobilization, Ogun state Universal Basic Education Board (SUBEB), Mrs. Omotunde Egunjobi, during a press conference on the Launch of Nestle Nigeria Water Education for Teachers (Wet) Projects in Abeokuta, Ogun state...recently

L-R: Minister of State for Aviation, Senator Hadi Sirika, Director General, Nigerian Civil Aviation Authority (NCAA), Capt Muktar Usman; Commissioner, Accident Investigation Bureau (AIB), Dr. Felix Abali, and representative of Managing Director, Federal Airport Authority of Nigeria (FAAN), Mr. Ikechi Uko, during an interactive session between the major stakeholders in the aviation sector on Improved Aviation Industry in Nigeria, held at Protea Hote,l GRA Ikeja Lagos…recently kola olasupo

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T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

BUSINESSWORLD R A T E S NIBOR OVERNIGHT 1-MONTH

A S

NIBOR

29.4167% 20.7904%

A T

3-MONTH 6-MONTH

Group Business Editor Chika Amanze-Nwachuku

Email chika.amanzenwachukwu@thisdaylive.com 08033294157

S E P T E M B E R

21.4458% 24.7096%

NITTY 1-MONTH 2-MONTH 3-MONTH

15.8218% 15.8678% 16.2693%

2 3 ,

6-MONTH 9-MONTH 12-MONTH

2 0 1 6

19.3764% 20.5132% 22.4006%

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

Quick Takes Lagos Begins Talks on 2017 Budget

The Ministry of Economic Planning and Budget is set to commence the yearly Bilateral Discussions with all Ministries, Department and Agencies towards the preparation of the year 2017 Budget. It is targeted at considering the proposals of MDA’s, review same, prioritise and agree on proposed programmes and projects in relation to the expected revenue of government.

The state’s Commissioner for Economic Planning and Budget, Mr. Akinyemi Ashade disclosed this. He reiterated that the Lagos government had chosen the key policy of running a “People’s Budget,” saying it is aimed at ensuring Lagos Works for all no matter the age, gender, tribe or status.

Thus, in fulfilment of this pledge to achieve an all inclusive 2017 budget, a consultative forum was earlier held in the three Senatorial Districts of the state namely; East, Central and West with the same purpose of considering and inputting the developmental proposals of citizens.

He further explained that the bilateral discussion would be based on the nine classification of functions of government (COFOG) lines namely general public service, public order and safety, economic affairs, social protection, education, housing and community amenities, health, environmental protection and recreation, religion and culture.

ECONOMY ON THEIR MINDS

L-R: President, African Development Bank, Akinwumi Adesina; President Muhammadu Buhari and Minister of Finance, Kemi Adeosun during the ADB boss visit to the Presidential Villa, Abuja…recently

Survey Reveals Increase in Credit in Third Quarter Obinna Chima The third quarter (Q3) 2016 “Credit Conditions Survey Report” has revealed increase in secured and unsecured credit availability to households, small businesses and corporate entities, compared with the previous quarter.

The report by the Central Bank of Nigeria (CBN) also showed that spread on overall secured and unsecured lending to households widened in Q3, 2016 and was expected to remain widened in the next quarter.

It stated that lenders also reported that households’ demand for house purchase lending, unsecured credit card lending and unsecured overdraft/personal loans all

ECONOMY increased in Q3, 2016 and were expected to increase in the next quarter.

According to the report, the demand for corporate lending in Q3, 2016 increased across all firm sizes and was expected to increase further in the next quarter. Corporate loans performance to all businesses deteriorated in Q3, 2016.

In addition, the report showed that in Q3 2016 relative to the previous quarter, lenders reported an increase in the availability of secured credit to households.

“Lenders noted that brighter economic outlook and changing appetite for risk were major factors behind the

increase. The availability of secured credit was however expected to decrease in the next quarter with the banks’ “market share objectives” as the major contributory factor.

“Due to lenders stance on tightening the credit scoring criteria in Q3 2016 there was a decline in the proportion of loan applications approved in the quarter. Though lenders expect the credit scoring criteria to remain tightened in the next quarter, they expect the proportion of households’ loan applications approved in Q4 2016 to increase.

“Maximum Loan to Value (LTV) ratios remained flat in the current and next quarter. Lenders expressed their unwillingness to lend at low LTV ratios (75% or

less) in both the current and next quarters. Similarly, they expressed unwillingness to lend at high LTV (more than 75%) in the current quarter and the next quarter (Question 10). The average credit quality on new secured lending improved in Q3 2016 and was expected to improve further in Q4 2016.

“Lenders reported that the overall spreads on secured lending rates to households relative to MPR widened in Q3 2016 and was expected to further widen in the next quarter. Widened spreads were reported for prime, buy to let and other lending in Q3 2016 and were expected to widen further in the next quarter,” it added.

Continued on page24

Value of Global Mergers and Acquisitions Declines by 27% to $1.8trn Goddy Egene The value of global mergers and acquisition (M&A) has declined by 27.4 per cent to $1.8trillion between January and August 2016, according to data obtained

by THISDAY on Monday. The data contained in the Global Merger Report showed that value of M &A was $2.5 trillion between January and August 2015.

However, is has declined by 27.4 per cent this year. Monthly analysis of the data indicated that the value fell by 34.7 per cent to 946 deals worth $182.2 billion, the lowest value since August 2013.

Private equity was less active on the buyout side in August

CAPITAL MARKET 2016 with only 138 deals worth $18.9 billion, down 51.3 per cent by value compared to the same period last year (199 deals worth $38.9 billion).

“Exits, on the other hand, were relatively stable with 138 deals worth $42.3 billion, a slight 1.1% decrease compared to August 2015 ($42.8 billion).

Energy, Mining & Utilities (EMU) was the most active sector in August, contributing 15.8 per cent to the total global market share with 84 deals worth $28.8 billion, despite a 28.1 per cent drop compared to August 2015 ($40 billion),” Mergermarket intelligence

said.

M&A activity targeting the Middle East & Africa region during August stood at 24 deals, worth $2.8 billion, showing a decline of 10.9 per cent compared to August 2015 when 30 deals, worth $3.1 billion was recorded. The highest valued inbound deal saw Singaporebased investment firm Yangon Investment acquiring a 52.3 per cent stake in Israeli insurance firm The Phoenix Holdings, for a total of $518 million.

In Africa, despite an overall decline in deals targeting the rest of the world, South Africa continues to dominate the region’s outbound M&A activity, accounting for a 39.2 per cent share in total outbound

deal value. This figure has decreased 12.3 per cent by value to $5.9 billion in 2016, down from US$6.7bn during the same period of 2015. The deal volume, however, has increased by six to reach 21 deals to date in 2016.

According to Mergermarket intelligence, while cash-rich South African companies will continue to eye opportunities for diversification and exposure to hard currencies, many will wait to see how the British exit from the European Union (EU) could impact European growth prospects.

The continent has been one of the favoured deal destinations Continued on page 24

Group Launches Baking Equipment

The Flour Milling Association of Nigeria has inaugurated baking equipment worth over N8 million at its baking school in Lagos which is operated in partnership with Yaba College of Technology.

Since inception in 2007, the baking school has trained over 320 bakers in nine streams.

Speaking at the baking equipment inauguration event, Vice Chairman, FMAN and Managing Director, Honeywell Flour Mills Plc, Mr. Olanrewaju Jaiyeola said: “It is our pleasure to come together on a day like this to further demonstrate our collective resolve to support the growth of small scale enterprises in the baking industry through the commissioning of new baking equipment. We believe that these new equipment which include 36KVA oven, dough mixer, cake mixer, dough proofer, deep fryer amongst others will further support the training of bakers in collaboration with Yaba College of Technology.”

Also, the Group Managing Director, Flour Mills of Nigeria. Mr. Paul Gbededo, said the flour milling industry is only second to agriculture in terms of employment generation with over 450,000 bakeries across the country and a long value chain of beneficiaries.

FMAN, according to him, is proud to be working with the government in the areas of research towards local wheat growing which will subsequently lead to local wheat sufficiency. He further urged government to “actively support the industry through improvement in infrastructure, and power supply amongst others.”

CHI Limited Rewards More Customers

With the consumer at the heart of its operations, Chi Limited, one of Nigeria’s market leader in fruit juices and Beverages recently rewarded more of its consumers through various initiatives in the digital social networking space.

Active across all the leading social media platforms like Facebook, Twitter and Instagram, CHI Limited recently concluded a series of social media contest such as ‘My 100% Achievement Contest’ and ‘Tea Side of Life Promo’ for Chivita 100% fruit juice and Chi Ice Tea respectively.

Other promos included Hollandia Yoghurt’s ‘Colours of Goodness Contest’, Chi Happy Hour ‘Burst of Refreshment Dance Contest’, Chi Exotic ‘My Exotic Weekend Promo’ and Chivita Active ‘Vegetable fruit Mix Promo’.According to a statement, to stand a chance of winning in the various social media contest, consumers had to like the brand’s page on Facebook and follow it on Instagram and Twitter. Entries were to be made through the social media platforms. From the submissions, entries were selected and final winners emerged from the overall number of likes and points each of the selected entries received.

“Our goal is to unlock the economic potential of the non-oil sector so as to achieve sustainable inclusive growth that will ensure Nigerians become more productive, thereby reducing poverty” Minister of Budget and National Plannin)

Senator Udoma Udo Udoma

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BUSINESSWORLD SURVEY REVEALS INCREASE IN CREDIT IN THIRD QUARTER Households demand for lending for house purchase increased in Q3 2016 and was expected to further increase in the next quarter. Of the total demand, increase in households demand for prime, buy to let and other lending were reported, but were expected to decrease in the next quarter except demand for prime lending.

Households demand for consumer loans, mortgage/ remortgaging and small businesses rose in Q3 2016 and were expected to rise further in Q4 2016. Secured loan performance, as measured by default rates worsened in Q3 2016 and but was expected to improve in Q4 2016. Loss given default deteriorated in the current quarter but was expected to improve in the next quarter.

Also, the availability of unsecured credit provided to households rose in the current quarter and was expected to further rise in the next quarter.

Lenders reported increased appetite for risk and banks’ market share objectives as factors that contributed to the increase in Q3 2016.

Due to Lenders’ resolve to tighten the credit scoring criteria for total unsecured loan applications in Q3 2016, the proportion of approved total loan applications for households decreased in the quarter.

VALUE OF GLOBAL MERGERS AND ACQUISITIONS DECLINES BY 27% TO $1.8TRN for South African growth due to similar time zones, relatively cheap debt and exposure to hard currency.

Domestic activity remained strong throughout 2016, with 118 deals worth $32.1 billion, representing a 192.9 per cent rise in deal value compared to the same period in 2015 ($11.0 billion in 175 deals).

The transaction between South African firms Redefine Income Fund and The Pivotal Fund, valued at $756 million, was the largest deal targeting the region in August.

NEWS

‘Give Us Technology, Not Finished Goods’, Ortom Tells Chinese Investors James Emejo in Abuja Benue State Governor, Mr. Samuel Ortom has urged Chinese investors to establish manufacturing plants in Nigeria and transfer technology to Nigerians to help fast track the development of the economy as well as bolster the friendly relations between both countries.

He said in as much as the Nigeria is willing to do business with China, the former should “give us the technology, we are not interested in importing finished goods from China.”

Speaking in Abuja at the Nigeria-China Investment Forum/Celebration of 45th Anniversary of Diplomatic Relations between the two countries, Ortom said: “Today, Nigeria is living off China from clothing to foods to spare parts-almost everything. That’s not helpful to the economy of Nigeria and not helpful to the friendliness of the country of Nigeria and that of China.”

Represented by the Deputy Governor of Benue State, Mr. Benson Abounu, the governor said: “We are interested in China coming here to establish a good productive base in order to help the economy of Nigeria and also the economy of China.”

He added: “The government of Benue State like other governments would now make it very easy to do business and that’s the most important thing.

We will provide land and make sure you get title to land within a month so that we can fast track the development of this country.”

It however, emerged that China had so far invested a total of over $2.5 billion in the nation’s economy particularly in areas of petroleum, solid minerals, telecommunications, broadcasting, construction materials and agriculture.

This was disclosed by the Charge d’Affairs of Chinese Embassy in Nigeria, Qin Jian adding that Nigeria remained China’s premium engineering contract market, third largest export market as we’ll as fourth major trading partner one of the major destinations of Chinese investment in Africa.

He said: “We have witnessed frequent high-level exchange

between the two sides and the political, mutual trust has been enhanced continuously, President Muhammadu Buhari has paid a successful state visit to China in April this year and during the visit, the leaders of our two countries exchanged in-depth views on bilateral relations and issues of common interest were reached while the new direction of future development of China-Nigeria strategic partnership was charted.”

He also said that the bilateral trade volume between the two countries from January to July this year stood at $6.46 billion which represented 7.6 percent of the total trade volume between

China and Africa and 36.4 percent of total trade volume between china and ECOWAS. Jian said: “In the area of people -to-people exchange, the bonds are also becoming closer as time goes on, according to my knowledge, several Nigerian people, especially, the young ones who are very enthusiastic in leaning Chinese language have been given the privileges to come to china to learn the language successfully., we have successfully too, invited over 100 African Ambassadors to china where we introduced them to top Chinese businessmen, all these are paying off today as the mutual cooperation in getting

stronger by the day.”

According to him, the Chinese government will continue to promote infrastructure development in Nigeria and the rest of Africa.

Nonetheless, in his presentation, the Governor of Katsina State, Aminu Bello Masari said that in line with the present government agenda, the Federal and State governments had come to realise and accept the necessity for the diversification from mono economy which had led to over or near total dependence on oil whose revenue income has now turned out to be insufficient and unsustainable.

ENHANCING ADMINISTRATION OF JUSTICE

L-R: Executive Directors of Asset Management Corporation of Nigeria (AMCON), Dr. Eberechukwu Uneze and Mr. Kola Ayeye; Managing Director/Chief Executive Officer of AMCON, Mr. Ahmed Kuru; Chief Judge of the Federal High Court, Justice Ibrahim Auta; and another Executive Director of AMCON, Mr. Aminu Ismail at the just concluded Judges Forum of the Federal High Court, which held in Abuja … recently

Nigeria to Save $5bn Annually from Growing Capacity in Welding Dele Ogbodo in Abuja The Ministry of Science Technology and Nigerian Institute of Welders (NIW) have pledged to build local capacity in the welding industry to replace foreign welders from Philippines and the Far East countries whose annual repatriation was put at $5billion.

Making the disclosure during a courtesy call by members of the Nigerian Institute of Welders (NIW), led by its President, Dr.

Solomon Edebiri, in Abuja, the Minister of Science Technology, Mr. Ogbonnaya Onu, said NBRRI will collaborate with the institute to build the much needed skills in that sector to gradually take over from both the foreigners and expatriates in the sector.

While underscoring, the importance of welding to Nigeria’s economic development, he said: “Welding technology is very important in all aspects of our economic life in fabrication,

manufacturing and construction.

“You cannot have an aircraft industry without welding; you cannot have satellite technology and without welding cars cannot be on the road.

“You can see that welding is important to building vessels and communications mast, ships and vessels.”

According to him, if the country had in the past looked inward by manufacturing many of the things that are imported today, the country would have

been creating large pool of jobs and wealth for its citizens, added that this will further assist in strengthening the economy out of its present state.

The minister said: “It is the responsibility of the ministry to support the institute, we shall collaborate with them and I commend them for the work that they are doing for the nation and everything that is necessary to make sure that we now build the capacity to have enough Welders that can help

in the construction, fabrication and manufacturing sectors of the country.”

On foreigners’ domineering presence in the sensitive sector, he stressed, though the welding technology is not as simple or easy as some people think take it, because of the high level of advance and precision coupled with the quality that is required like in building aircraft, communications mast and satellites development.

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 (Capital Market)

EGM Trading Platform Facilitates Access to Global Markets Goddy Egene Retail and institutional traders and investors in the Nigerian finance space, who have for long craved for an indigenous platform that can provide world class functionality with numerous benefits now have the opportunity following the introduction of the Eagle The Global Markets(EGM) propriety trading platform.

The EGM platform facilitates fast order execution with a depth of analytical tools, to access over 3000 assets, in categories that include equities, commodities, forex and

spot metals. According to the Chief Executive Officer (CEO) of EGM, Mr. Gbite Oduneye, the company is here to stay and holds the interest of Nigerian traders at heart. He said EGM is offering the highest levels of transparency, ease of transacting and most importantly constant innovation that will lead to client development.

“The company has succeeded in eradicating the bureaucracy in trading global markets in the sense that it doesn’t have to put pressure on the foreign exchange (FX) because all global market trades through its platform are done in Naira. It gives more

value to the Naira because more people will have to look for it to trade global markets,” he said.

Oduneye disclosed that within just three months in Nigeria, EGM has over 600 active trading clients that qualified to trade on their platform. . “About 50 percent of trading applications were declined because we are ensuring we do the right things –including Know Your Customer and other regulatory checks because in the long run, it will pay-off. The reason for all necessary check on trading applications is for us to ensure best practice. This is what most of our competitors have not

done,” Oduneye said..

He added that among others, the advantages of the EGM platform include: include: two platforms (one web based with no need for downloads); customizable ECN based accounts; Naira platform that eliminates need for currency conversion in deposits and withdrawals; competitive spreads; analysis support (trade of the day); platform support (Webinars every Friday); trading support through weekly classes,; convenient and fast deposit and withdrawal process; IOS and Android apps for mobile trading; dedicated account managers; industry

leading education modules; easy access to promotions and market analysis via social media and experienced staff; and PAN African brand with focus on developing African traders.

Oduneye also assured potential clients that global industry standards would be applied in the client onboarding process, adding that the advent of EGM sets a milestone, standing as the first Pan-African brand to offer such an opportunity to Nigerian clients who previously, had to face the hassles of operating a United State dollar denominated account, in other to access even less attractive markets.

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BUSINESSWORLD

EQUITIES WATCH

Guinness’ First Loss in 30 Years

Stiff competition, among other factors, saw leading brewer, Guinness Nigeria Plc recording a loss for the first time in 30 years for the year ended June 30, 2016, writes Goddy Egene

Guinness factory

Investors in the Nigerian stock market who invest for dividend cannot ignore Guinness Nigeria Plc. The brewing giant is one of the regular dividend payers in the market, delighting shareholders with dividend payment. However, the challenging operating environment has recently affected the level of dividend received by the shareholders as a result of declining profitability. Since 2010, the dividend received by shareholders of Guinness Nigeria has maintained a steady decline.

The shareholders are set to receive the lowest dividend of 50 kobo per share for the year ended June 30, 2016, following a loss recorded by the company for the first time in 30 years.

Financial results Guinness Nigeria Plc last week reported a loss before tax of N2.347 billion and loss after tax of N2.0 billion, compared with profit before tax of N10.795 billion and profit after tax of N7.79 billion in respectively in 2015.

Details of the audited results of the company indicated that turnover fell by 14 per cent from N118.49 billion in 2015 to N101.973 billion in 2016. The company was able to reduce cost of sale from N63.5 billion to N60.1 billion.

Similarly, marketing and distribution expenses was reduced from N27.1 billion to N24.88 billion despite the high inflation that characterised the period. Administrative expenses rose marginally from N12.9 billion to N13billion. The company ended the year with an operating profit of N4.415 billion, down from N15.667 billion. Net financing cost rose by 38 per cent from N4.872 billion to N6.763 billion.

Consequently, Guinness Nigeria posted loss before tax of N2.347 billion and loss after tax of N2.0 billion.

Company explains performance Speaking on the results, Managing Director/ Chief Executive Officer, Guinness Nigeria Plc, Mr. Peter Ndegwa, said that the combination of a tough economic environment and challenges with naira devaluation had a significant impact on Guinness Nigeria’s overall performance.

Guinness MD, Ndegwa Ndegwa

“Our performance this year was impacted by two major factors, one being the very tough economic challenges around consumer spending, driving consumer preferences towards value brands across the sector, the other, and more significant factor being the effect of foreign exchange policy and the devaluation of the Naira. When you take out the impact of the latter, our underlying performance for the year was broadly in line with the prior year in spite of the pressure on the top line,” he said.

Speaking in the same vein, Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage, said: “Despite the continued deterioration in the operating environment, the Board is pleased to note that our core brands of Guinness Foreign Extra Stout and Malta Guinness are in growth and we now have a strong participation in the growing value segment of the market through Satzenbrau and Dubic. We have also started to see early signs that our decisions to acquire the distribution rights in Nigeria to the International Premium Spirits brands of Diageo and to invest in local

capacity for spirits manufacturing are the right ones for the business.”

In January 2016, Guinness Nigeria acquired the distribution rights for Diageo, its parent company’s International Premium Spirits (IPS) like Johnnie Walker, Ciroc and Baileys in Nigeria.

Also in the course of the financial year, the company acquired the rights to distribute brands from India’s United Spirits Ltd (USL) for brands like McDowell’s whisky.

Explaining further, Ndegwa said: “Following the acquisition of distribution rights for IPS and USL brands, we are the first and only total beverage alcohol (TBA) business in Nigeria offering the widest range of drinks - from adult premium non-alcoholic drinks (APNADS) to lager, stout, mainstream spirits and IPS. This puts us in a great position to continue to offer consumers quality brands, giving them a choice at every category and price point.

According to him, innovation continues to be a strong platform for the company.

“We have a highly successful track record with about 60 per cent of our beer and nonalcoholic business now comprised of innovation products launched in the past four years. So innovation continues to be one of our competitive advantages in this market and we have a strong innovation pipeline into full of 2018. Despite the economic headwinds, we continue to be deeply committed to doing business the right way being guided by our Code of Business Conduct ensuring that we engage, in the right way, with everyone that comes into contact with our company,” he said.

Analysts’ assessment Looking at the fourth quarter (Q4) numbers of the company, analysts at FBN Quest said the losses were significantly worse than their expectations.

“As such, we have cut our earnings estimates over the next two years by 88 per cent on average.

However, beyond 2019E, we believe that the company should start to show some signs of recovery on the back of its import substitution strategies and enhanced focus on the spirits

business. As such, despite increasing our risk free rate assumption by 200 basis points to 14.5 per cent, we have trimmed our price target by -8 per cent to N80.12. Despite the recent sell-off, we still find the shares relatively expensive.

From current levels, they show a downside potential of -14 per cent to our N80.12 price target. As such, we retain our underperform rating,” they said.

According to the analysts, the results were weak across all key headline items. Although a combination of factors including a -4 per cent decline in sales to N32.4 billion, a gross margin contraction of -939bps to 35.7 per cent and a six per cent rise in operation expenditure all contributed to the pre-tax loss, a 3.1x spike in net interest expense was the major driver.

“Owing to a tax rebate, the after-tax loss narrowed to -N2.9billion. Sequentially, sales grew by 64 per cent q/q due to seasonality. The pretax and post-tax losses compare with the -N449 million and –N309 million delivered in Q3 2016,” they said.

FX challenges to weigh on outlook FBN Quest explained that Guinness’ Q4 2016 numbers were weighed down by gross margin contractions and a significant rise in finance charges, adding that both negatives resulted from forex challenges.

“We estimate that the company imports over 60 per cent of its raw materials. Guinness reported a forex translation loss of N3.5 billion in 2016. We believe the bulk of the loss was due to the company’s decision to take a loan of $26 million in the last quarter. Given the company’s significant reliance on imported raw materials and the naira having weakened further since June, we have been conservative on both the gross margin and interest expense lines in the very near term. We see a glimmer of hope in the company’s strategy to increase its focus on the spirits business, which ordinarily should attract higher margins than the mainstream beer segment,” they said.

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BUSINESSWORLD

INTERVIEW

Adeosun: Our Focus is to Get the The Minister of Finance, Mrs. Kemi Adeosun, in an interview with journalists in Abuja, unfolded the various stimulus measures by the fiscal authorities to pull the economy out of recession.

She emphatically stated that massive spending on capital projects, fixing infrastructure, housing and environmental problems are key strategies to enhance inclusive economic growth. Excerpts: Now that the Monetary Policy Committee of the Central Bank of Nigeria has decided to retain the interest rate, what are the options available to the fiscal authorities to stem the recession?

We are looking at a range of options and one of the biggest issues for us was the cost of borrowing because government is the biggest borrower.

So what we said from the beginning was that we will look for cheaper borrowing to bring down our cost of borrowing. Currently, it’s cheaper to borrow internationally than borrow locally. So what we are looking at and we are working with the Debt Management Office to try and refinance existing debts into external to get lower interest rate and to structure it over the medium term. That will reduce the cost of our debt service and increase the amount of money available for capital, which is really our focus to get the economy moving out of recession.

The strategy for getting us out of recession is to spend on capital projects and that is our priority.

The country has been trying to get loans from the IMF/World Bank, China Export-Import Bank and other external sources but little or no result has come from that endeavour. Is Nigeria no longer attractive to foreign creditors?

Adeosun

Those loans have a very long process. If you remember, at the last Federal Executive Council meeting, we got the borrowing plan approved and that has to be approved by the National Assembly and once it’s approved by the National Assembly we can begin to access those loans. That was why we rushed it at FEC very quickly and now it’s with the National Assembly and once they finish their oversight functions we will be able to draw down on some of those facilities.

We are looking at a range of options and one of the biggest issues for us was the cost of borrowing because government is the biggest borrower.

So what we said from the beginning was that we will look for cheaper borrowing to bring down our cost of borrowing

When will the funds from the loan start coming in?

African Development Bank President is coming on Monday and I’m sure he will give us an update on where we are on that one. The China EXIM is in process at the moment especially for the rail. Some of the China EXIM loans are currently running like the airport project but the big one is the rail one and that is the one we are hoping will come in before the end of the year. And then the Eurobond; we are just finalising the appointments of the parties and we are confident that we will close that one before the end of the year. We are confident on the Eurobond because we already had commitments even before we open the offer. They can see we are serious. We went to London and the feedback was positive and we are confident we will get that money. So it’s not an indication that Nigeria is not attractive. Nigeria is very and extremely attractive.

What are the measures to attract investors into Nigeria considering the fact that we are now in a recession when people are unwilling to come?

One thing we need to understand in Nigeria is that majority of the investments in Nigeria are by Nigerians. If I can’t persuade you to invest, then I cannot persuade a foreigner to invest. So our focus is let’s get the environ-

ment right. Once the environment is right and there is an opportunity to make profit, foreign investors will come but the most important thing is what is that environment and those things that investors want to see in order for them to invest both Nigerian and foreign investors.

Sometimes we focus more on foreign investors and ignore the people that are really putting money in Nigeria.

We need to sort out the infrastructures.

That is what investors have been saying is a limiting factor; the corruption because people get frustrated by going from one ministry to another trying to get a permit and afterward they will just say let’s forget it and these are the things we are trying to do so we can have an environment where business can flow.

What has been the impact of the capital vote released so far?

The second N350billion has just gone out and so we have to wait for that impact.

But the first one we are quite satisfied with what has happened because many of these contractors have not been paid since 2012.

So when we did the first one, they were not sure of us if we are going to sustain the releases and so the second one for us is far more significant and a lot of them came and said we haven’t been paid since

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BUSINESSWORLD

INTERVIEW

Economy Out of Recession We are working with the Debt Management Office to try and refinance existing debts into external to get lower interest rate and to structure it over the medium term that is in areas where land is abundant but in areas where land is not abundant, we have to do flats in high-rise buildings.

This is one of the things that will drive us out of recession because for every house you build, you create about seven jobs-builder, plumber, carpenter and the rest.

The other thing we are doing is that we recognise diaspora remittances, which is about $20billion and a lot of that money come into families and if your brother or sister wants to help you, then let him help you to buy house. If you can help me buy a house, then I will be free of my problems and that is the innovative way to recognise the power of diaspora and the way our family operates.

So we already have sites in Delta, Nasarawa, Abuja , Lagos, Ogun and Oyo and within the next three or four weeks, the developers will move to site and you will see that this is a reality for Nigerians and it will be a fulfillment of one of the promises of this government and it will really address the cost of building for many Nigerians.

In Nigeria, we have the lowest rate of mortgage penetration, which is 0.3 per cent of GDP, Kenya is 1.2 per cent and Zimbabwe is 1.5 per cent and South Africa is 5 per cent. So we don’t have mortgages at all in Nigerian.

Won’t the National Housing Fund clash with the roles of the Nigerian Mortgage Refinancing Company?

The NMRC finances mortgages after the Primary Mortgage Bank has created the mortgage.

The problem we had was that there were no mortgages being created and so NMRC had nothing to refinance. What we have done is to fill that missing gap. You have to have a mass housing programme to create mortgages.

That is how countries that have developed did it and that is why when you walk down the street of London, all the houses are the same because they were built with government support. If you go down the street of Nigeria, every house is different and a country as big as Nigeria needs mass housing.

2012 and the tendency is to hold on to that money rather than working.

But now, we have done the second one and I think that confidence in government ability to meet up to its obligation is being restored. So I’m sure that with this second release, you are going to see a whole lot of activity on our roads, rail and those big infrastructure projects.

Another area of infrastructure which was approved by the National Economic Council is our housing fund and that for us is one of the most radical changes that this government wants to bring. We’ve looked at what are the things that are problems to the Nigeria workforce apart from road, power. For the average man on the street, after food, is housing and it’s the thing that is sucking away people’s income and making cost of living very high.

You pay rent a year in advance and that one is like a burden and that is because rent is so high, you can’t afford to save to buy your own house. It’s never done like that in developed countries. In any other developed country, you pay for your house little by little over 20 years.

So NEC approved a programme, which is the family home fund and this is affordable housing. What is going to happen is that

we’ve raised a fund and we are starting with N500billion but we are hoping to get to N1trillion and what that fund will do is it’s a financing solution for housing.

We’ve looked at the reasons why Nigerians cannot afford to buy their houses little by little like in other countries and the problems are high cost of land, no infrastructure, and high cost of financing as high as 22 per cent for

Once the environment is right and there is an opportunity to make profit, foreign investors will come but the most important thing is what is that environment and those things that investors want to see in order for them to invest both Nigerian and foreign investors

the developer and by the time the developer finishes building the house, you can’t afford it. And on the mortgage side, when you tell somebody to come and do mortgage and you are charging him 22 per cent, he can’t pay.

So we’ve come up with solutions to intervene.

One, the fund will provide funds to the real estate developers to develop affordable standard housing and not the house where you still have to go and sink your own borehole and do your own transformer. It will have power, running water, drainage in the estate that we will create, the roads in the estates would be tarred.

The houses start from N2.5million and it will go to a ceiling of N18million but 40per cent of the houses will be N7million or less because that is what our assessment shows that the average man can afford. So you put down 10 per cent and pay the balance over 20 years at single digit of 9.99 per cent rate of interest.

We ‘ve presented that to the governors and we are trying to do 100,000 houses next year and rise to about 400,000 a year because our housing deficit is 17 million and it increases every year by 900,000.

So if you can put down 10 per cent and have a salary and have Retirement Savings Account, you move in and will be paying monthly. The smallest house of N2.5million is like a studio and

Another challenge is that houses are expensive which has to do with high cost of building. Is there anything being done in that direction?

One of the things the governors will be doing is to provide the land while we provide the infrastructure because land and infrastructure is about 40 per cent of the cost of the house.

Secondly, by building en masse, the cost goes down and so we’ve done a lot of work around how we bring down the cost of houses by doing mass housing.

We are also using modern building techniques rather than so much concrete so that we can provide housing at an affordable price and it has to be standard.

It is quite easy to build these houses but another thing is the issue of corruption.

What measures have you put in place to ensure that those who are connected do not come through the back door to take these houses at the end of the day?

These are affordable houses for Nigerians and it’s going to be linked to Bank Verification Number; it’s one house per person and so you cannot buy the house and rent it to somebody.

We are also having this cooperative structure and for us that is the strongest group of comContinued on page 28

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T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

BUSINESSWORLD

INTERVIEW

ADEOSUN: OUR FOCUS IS TO GET THE ECONOMY OUT OF RECESSION

The other thing we are doing is that we recognise diaspora remittances, which is about $20billion and a lot of that money comes into families and if your brother or sister wants to help you, then let him help you to buy house munity in Nigeria and they will be the ones managing wastes, security and others. We’ve been to Kenya and we’ve studied it and it was successful. So we think by using BVN, it will be difficult for anyone to come and hijack it because you can’t have two BVNs. The annual meetings of the IMF/World Bank will hold in Washington DC next month, what agenda will you be taking there and what in concrete terms do you expect to bring back to Nigeria from the meetings?

We talk to the world bank and IMF every day and I think we will be telling them what plans we have for the Nigerian economy and how we see the Nigerian economy going forward, which and we are committed to inclusive growth and we are confident around the plan that we are pursuing and we are willing for them to support us. They are already supporting us in fairness to them, heavily in so many areas such as education, polio and rebuilding of the North East. They are very supportive for this country and we want to continue to deepen the relationship so that we can get concessional funding that we need forthese projects and giving them the assurance that the reforms we arepursuing are working.

The administration said the release of capital funds would be tied to performance. So far you have released about N770billion. How do you measure performance in this case?

The budget has been split from finance.

The monitoring is in theMinistry of Budget and Planning and they have actuallydone some monitoring. Those that made request for funding, budget andplanning have gone there and see that based on the last one, you have not achieved the milestone because before we release monies, thepermanent secretary actually signed off based on the milestone they are to achieve.In some cases, people have excusable delay of waiting for the public procurement and we said fine, you don’t need more money because you have not actually used the one that was given to you. So I think that monitoring actually kept everyone on their toes. This money actually belong to all of us and so we do not just give them without it

Some stakeholders have also argued that the benefits of a memorandum of understanding (MoU) between the Nigerian Navy and NIMASA have not been well maximised

Adeosun

being tied to something and the more we continue to do that and improve,people will be able to see what government is spending money on.

The diversification agenda of the government has been seen by some people as mere rhetoric. How soon are we going to start seeing action in the area of diversification?

The economy is already diversified to an extent because oil is only nine per cent of the GDP. 91 per cent is real estate, services, banking, telecoms and so on. The problem is that government relies on that nine per cent, which is oil for its revenue and so the issue is not whether the economy is diversified but we don’t want to rely on oil as our source of revenue.

Why are those other areas of the GDP not contributing more to the GDP? Real estate is about eight per cent of our GDP and so what does real estate contribute to government revenue, that is what we want to belooking at. Are there leakages there, are there taxes they are supposedto be paying and they are not paying? Are they paying to some agencies and the money is not coming in.

For those areas that have potential that are yet to take off, thereare some things we need to put in place such as infrastructure. Take agriculture for example, if you go to Benue for example, you will seeoranges rotten and that is money. And the problem is how to get thoseoranges from there to where to export or process into orange juicesince we don’t have the infrastructure and that is the missing link inany economy.

The other problem is power. Even if you have those oranges and youwant to process them, you are handicapped because there is no powerand as such you cannot compete.

And that is why we looked at the economy and say if we can fixinfrastructure, different areas of the economy will be moving and assoon as we can do that consistently, you will see great progress. It’sa very difficult time but we have to do it.

There have been divergent opinions on the sale of some of the national assets,

considering the fact that some of the ones previously sold have not been properly managed. Why sell these assets when wecould generate money from other sources?

I think there a lot of assets that are being considered. There aresome unused assets that are just lying idle and people have come and said these things you are not using, can we lease it from you? I thinkwhen you are looking for money, some things that government is sittingon, we don’t have money to do it and so it makes sense for me tounlock those things as it will bring money to the economy at these difficult times so that we can move forward.

I don’t think we have gotten to the stage where we say it’s this orthat asset. I think the conversation now is should we just

The economy is already diversified to an extent because oil is only nine per cent of the GDP. 91 per cent is real estate, services, banking, telecoms and so on. The problem is that government relies on that nine per cent, which is oil for its revenue and so the issue is not whether the economy is diversified but we don’t want to rely on oil as our source of revenue

keep continue borrowing or now that things have gotten to thisstage we should start to dislodge some underutilised assets and it’s not exclusive to us. Saudi Arabia is selling some of its oil assets.So if you sell an asset and use it to finance another asset, which is going to give you more, then I don’t have problem with that.

Which one is more profitable? Leasing it for a while and then youstill have it or outright sale.

It depends on which one. There are some assets that you can lease andthere are some which you may need to divest. The investor will needto look at the risk and pricing accordingly. We can sell to theNigerian people or the pension fund and you can also list these assetson the stock exchange. So there are different type of sale Is the sale of assets likely going to reduce the amount of money thegovernment would be borrowing?

Yes, the deal is we’ve done a medium term expenditure framework anddebt strategy and we feel that the infrastructure challenges that we face are so serious and the kind of money that we need, we chantborrow because when you have an accumulated deficit, you need to lookfor the money that will sustain what you are doing for the next threeto four years.

So that is what we are looking at and having a morestrategic approach so that over time, we will borrow less and which ofcourse is good in the long run.

Can we be out of recession in this quarter?

I don’t want to predict when we will get out of recession but let metell you that we would get into growth and that is how you get out ofrecession because of the stimulus that we are providing and it maytake long than we would like but we would definitely going to get outof it. We are already seeing some positive signs around agricultureand solid minerals and with what we are trying to do in other sectors,I’m sure we will get out of it.

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T H I S D AY • FRIDAY, SEPTEMBER 23, 2016

BUSINESSWORLD

ANALYSIS

Economic Recession: All Eyes on DMO Goddy Egene reckons that as Nigeria prepares to borrow and inject more funds into the economy in order to move out of recession, the Debt Management Office has the onerous task to ensure this succeeds

Osinbajo

It is now official that the Nigerian economy is in recession and the federal government is in dire need for solutions to salvage the economy.

Last week, President Muhammadu Buhari and his team met with economic experts and private sector operators as part of efforts to discuss steps being taken to get the economy out of recession.

At the end of the meeting, one obvious thing that came out was that the government must spend to get out of the current bad economic situation.

Need to borrow more In the 2016 budget, the federal government had intended to borrow N1.8 trillion from both domestic and foreign markets to finance the deficit in the over N6trillion earmarked to run the country this year. The dwindling oil revenue has compelled the government to significantly rely on borrowing to fund the budget. Hence the government had intended to borrow about N1.8 trillion from both domestic and foreign markets to fund the deficit. However, with the recession, it has become obvious that more money would be borrowed, a development economic experts and government officials have confirmed.

Speaking on how to come out of the recession, the Managing Director/Chief Executive Officer of Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, said for the federal government to overcome the economic recession, it must borrow and sell assets to raise funds that would be injected into the economy.

According to him, since there is a fall in oil revenue, the government has to increase the deficit plan for 2016.

“The government must inject funds into the system and the executive is fully engaged because they kwon they cannot hide they have to deal with the problem. And given the fall in oil revenue, you have to increase the deficit plan for the recovery. You must borrow and President Muhammadu Buhari has said we will borrow at least $5 billion externally. We must sell some assets because when you are in this kind of situation, you have to sell some assets,” Rewane said.

Government confirms more borrowing The Minister of Budget and National Planning, Senator Udoma Udo Udoma last Friday

Nwankwo

confirmed that government would borrow more in foreign currency, disclosing that between $10 to $15 billion is being targeted.

“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.

According to him, 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 N1trillion 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.”

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

Before Udoma’s disclosure, the Minister of Finance, Mrs. Kemi Adeosun had said the executive council had approved a three-year rolling external borrowing plan.

According to her, the loans would come from agencies such as the World Bank, African Development Bank, China Exim Bank, and other development agencies like the Japanese International Cooperation Agency (JICA).

She said the plan to borrow externally was in line with government’s strategy to focus on concessional debts, low cost loans particularly from multi-lateral agencies, noting that the loans would be applied to develop strategic sectors which government believed would help revive the economy.

She said the power sector would receive a significant amount of the loan to take care of projects militating against efficient power generation.“The largest beneficiary of our borrowing is agriculture because it is equally strategic and we have programmes by the minister, some of which he inherited and is going to restructure and reform and some are new to the ministry. ” Adeosun emphasised that the economy must be diversified, saying, “there are too many of us to keep on relying on oil. We can all see what happened at the output data of the oil and gas sector. What’s happening in the Niger Delta has dragged down the GDP of the entire economy. We’re too dependent on oil. We have to invest in capital projects.”

Onus on DMO Having realised the need to borrow more, all eyes are now on the Debt Management Office (DMO), which has the mandate to borrow on behalf of the government and ensures efficient management of the country’s debts.

Although there have been some criticism by some stakeholders on the level of the country’s debts in recent times, some other stakeholders have said what the government actually needs is borrowing for capital expenditure and productive purposes as against for recurrent expenditure in the past.The Director General of DMO, Dr. Abraham Nwankwo had that at below 20 per cent debt-to-gross domestic ratio, Nigeria is very much still in the comfort zone to borrow more.

Also, another expert who believes Nigerian can still borrow for productive purposes is Mr.

Odlim Enwegbara, a development economist.

Comparing the debt-to-GDP ratio of some countries, Enwegbara said Japan’s stands at 224 per cent; Italy’s at 128.50 per cent; the United States at 107 per cent; France’s at 95 per cent; the United Kingdom’s at 89.80 per cent; South Africa 44 per cent; India’s 66 per cent; Brazil’s 60.8 per cent; Kenya’s 50 per cent; Ghana’s 67.50 per cent.

“With Nigeria at 17 per cent, the country has the opportunity to raise funds that are projects specific to fast-track the infrastructural development of the nation,” Enwegbara.

However, one big question that many would want to be answered is the capacity of DMO to successfully raise the funds that are needed to move the country out of the economic recession.

A financial market analyst, Femi Adelaja said given the track record of DMO and the commitment of the management of staff of the agency, raising the funds would not be a big problem.

“What I think we should be talking about is the efficient utilization of the funds by the government so that we won’t repeat the mistakes of the past where funds were diverted from the original purposes for which they were borrowed,” Adelaja said.

DMO’s track record Having resuscitated the domestic bond market, DMO has also facilitated access to the international capital market (ICM) for Nigerian corporate players and government. That journey to the ICM began in 2011 when DMO issued $500 million Sovereign Eurobond in 2011. This was followed with $1 billion dual-tranche Eurobonds in July 2013, thus creating benchmarks for corporate borrowers. In 2014, DMO issued FGN Bonds in Global Depository Note (GDN) format for the first time aimed at diversifying the investor base and attract foreign investors to the domestic securities market.

By December the country is expected to return to the ICM to begin the foreign capital raising exercise. Some analysts have expressed confidence that with the track record of the Nwankwo-led DMO, the economic potential, and the commitment of the government to return Nigeria back to its leading position in Africa, the country will have a successful capital raising exercise.

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T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

BUSINESSWORLD

INSURANCE

FBN Insurance Boss Highlights Opportunities in Non -Oil Sector Stories by Ebere Nwoji Huge business opportunities exist for the insurance sector in the non- oil sector of the economy in the light of current economic downturn largely brought about by the plummeting oil prices.

This observation was made by the Managing Director/Chief Executive Officer, FBN Insurance

Limited, Mr. Val Ojumah.

Ojumah, who spoke at the professional forum of the Chartered Insurance Institute of Nigeria (CIIN) held in Abeokuta, Ogun State, noted that the crash in crude oil prices is not a new phenomenon as it tends to happen at least once in a decade.

“Just as in the 80s, crude oil prices have declined from 2014

to 2016 triggering sustained fall in Nigeria’s GDP growth over the same period.

He said other economic indices too have shown the same decline”, adding that Nigerians must note that economies usually go through a boom-gloom-recovery-boom cycle.

He also said insurance professionals must highlight

key trends in each phase for strategic planning purposes if they want to remain profitable and relevant in their line of business.

Ojumah, in his presentation at the forum titled, Non-Oil Sector and Opportunities for Insurance, highlighted three critical strategic imperatives that are important for the survival and sustained growth of the

industry.

These, according to him include product innovation, refocused distribution strategy and improved service delivery.

According to him, any practitioner worth his competence must make these three a core of his strategy.

He added that execution may vary from company to company but that the basics are pretty

the same.

He said tough times require smarter and more consumerfocused strategies, charging insurance operators to innovate or miss out.

Re-evaluate your distribution strategy or remain stuck in yesterday. Improve your services or lose out to competition.

The choice is yours,” Ojumah concluded.

SA Insurance, Life Assurance Secure NAICOM, Shareholders’ Nod for Merger The boards of SA Insurance Plc and SA Life Assurance Limited have secured the approval of the companies’ shareholders to go ahead with their merger plan.

SA Insurance has also secured a “no objection order” of the industry regulator, the National Insurance Commission (NAICOM) for the merger.

This was the major fallout of the separate court-ordered meetings, which the two companies convened recently in Lagos where their respective shareholders voted in favour of the merger plan.

At the separate meetings, Mr. Bode Akinboye, Chievf Executive Officer, SA Insurance Plc and Mr. Bolaji Oladipo, Managing Director, SA Life Assurance Limited, respectively explained the strategic derivable values from the merger to the shareholders, noting that joint strength from the process will ensure a much stronger performance and returns to the companies’ owners.

According to Akinboye, the merger plan was deliberate and strategic decision by the boards of both companies to form a frontline composite insurance company which will play a leading business role in the nation’s insurance sector with an ultimate goal of making the company a most preferred place to invest in.He further told the owners of the company that the corporate action was being taken with a focus on delivering superior returns to them, providing much higher level of satisfactory service to the company’s clients and to save cost of operations.

On his part, Oladipo assured SA Life’s shareholders that “the composite company to emerge will continue to build on the success of the transaction in the months to come, providing more innovative products and

delivering on its promises to clients,” noting that “with the combined professional and result-oriented workforce of the two companies involved, the composite company was sure of achieving its set merger goals.”

While lending his voice to the need for the merger during the court-ordered meeting convened by SA Insurance Plc, Timothy Olufemi, President, Renaisssance Shareholders’ Association, told his fellow shareholders that the move by the board was commendable and timely, noting that going by the prevailing difficult conditions under which the nation’s insurance companies have continued to operate, the best alternative to ensuring shareholders have better values for their investments was the merger option.

He urged the board to further look at dropping off any unprofitable investment and products and concentrate instead on what had formed the two companies’ areas of advantage with a view to reaping the effect of the merger decision.The merger issue was later put to an electronic vote moderated by Sefton Fross Law firm in the presence of representatives of the relevant regulators with the result indicating shareholders’ full approval for the merger scheme.It could be recalled that to give the merger plan the necessary regulatory backing, the management of SA Insurance had much earlier applied for and secured a “no objection consent” from its regulator, the National Insurance Commission, NAICOM and in line with market procedures and pursuant to Rule 228 (ii) of the Investment and Securities Act 1999, the Management had also notified the Securities and Exchange Commission.

COURTESY VISIT

L – R: Finance Director, Cadbury Nigeria Plc, Yimika Adeboye; Chief Executive Officer, The Nigerian Stock Exchange (NSE), Oscar Onyema; Managing Director, Cadbury Nigeria, Roy Naaman; Chief Counsel/Company Secretary, and Head, Domestic Primary Markets, NSE, Tony Ibeziako, during a courtesy visit to Cadbury Nigeria Plc inLagos…recently

Odeyemi Tasks CAMCONIA Members on Marketing Insurance The Chairman, Association of Corporate Affairs and Communication Managers of member companies of Nigeria Insurers Association (CAMCONIA) Dr. Tunde Odeyemi, has urged members of the association, who constitute mouth piece and image makers of insurance institutions in Nigeria, to brace up to the challenge of unbundling the potential and benefits of insurance profession to the Nigerian populace through incisive and clear communication method.

Odeyemi, who tasked the association at the 2016 edition of its annual retreat held in Abeokuta, Ogun State, recently noted that the Nigerian Insurance Industry has been bedeviled by low penetration problem caused by cultural beliefs, lack of trust and ignorance on the

part of the insuring public.

“It is no longer news that the Nigerian insurance industry has been bedeviled by low penetration occasioned by multifarious reasons bordering mainly on unfriendly cultural beliefs; lack of trust in the practitioners, lack of insurance education and unfriendly economic environment, among others.

He said: “Unfortunately, these reasons have remained the bane of insurance in the last five decades and it is responsible for the abysmal contribution of the industry to the nation’s Gross Domestic Product.”

Odeyemi, who is also the Corporate Communications Manager of Staco Insurance Plc, regretted that in spite of the catalytic role of insurance to national economies of progressive countries, the industry has

continued to find itself in the back waters of development.

He said coincidently, these same reasons are the core tasks of communication within the boundaries of the association’s portfolio as Corporate Affairs and Communication Managers.

“It then means that we as public relations or communications practitioners, as the case may be, need to brace up to unbundle the potentials and benefits of insurance more clearly to the Nigerian populace.

He noted that rumour, half-truths and unbelief thrive in an environment where communication is lacking, adding that the annual retreat among other reasons was meant to deliberately enhance the members of the association’s own personal knowledge, power and reputation management skills.

He said this would in turn translate in the members’ better service delivery, leading to an improved insurance industry.

He noted that it is the task of the industry operators and professionals in the contemporary times to continually train and re-train themselves in order to catch up with the trend of the times adding that it is a delusion for any professional to remain stagnant in changing world and expect to make impact.According to him, the retreat has becomes pertinent and there is no better time to champion the discourse on the impact of PR on Insurance and Risk Management than now, given the recessive state of the national economy and the need to accentuate the value of insurance to reflating the economy than now.

Royal Exchange Group Grosses N10.79bn Premium in 2015 Royal Exchange Group said it grossed premium income of N10.79 billion in 2015.

The Company’s chairman Kenneth Odogwu, disclosed this recently at the firm’s annual general meeting (AGM) in Lagos.

He said the result showed an increase of 14 per cent from the company’s performance last year

noting the company recorded N9.43 billion gross premium in 2014.He said the firm’s net premium income peaked at N8.08 billion, profit/loss for the period (N1.29 billion) and total assets stood at N 26.53 billion.

According to him, the firm’s net claims rose N3.04 billion, as against N2.43 billion recorded

in 2014, while underwriting expenses decreased by four per cent from N2.74 billion in 2014 to N2.64 billion last year.

Also, management expenses stood at N3.27 billion as against N3.09 billion in the previous year, adding that an increase in reserve of N1.2 billion was made by the group for the insurance

and investment liabilities of the the life subsidiary within the period under review.

A shareholder of the company, Gbenga Idowu, commending the company’s result for the period under review, congratulated the board for a job well done and for enabling the subsidiaries to make profits.

He also commended the firm for looking into the future through investment in information technology that would help drive its operations.

Another shareholder Chief T .O Adegboyega urged the firm to intensify efforts in growing its investment income.

He Lauded the board for

controlling its expenses and called on the management to pay attention to directors allowances and the consultancy fees.

Nona Awo, also a shareholder, lauded the firm for its donations and urged the management to consider merging the life and non life firms to improve profitability.

T H I S D AY WEDNESDAY SEPTEMBER 28, 2016

RE: TARABA APC CALLS FOR GOVERNOR ISHAKU’S RESIGNATION

Infact, societies that have progressed overtime owe period of economic recession should be commended such attainment of growth and development largely because most states of the Federation are instead to constructive criticisms from well-meaning citizens. owing workers several months of salary arrears.

However, this is not what is happening in Taraba State where we have a reservoir of mischief The government is not surprise that Ardo who is a failed makers who are bent on creating an unhealthy accountant in the service of Taraba State Government atmosphere to undermine the present administration. some years ago, could make sweeping and unsubstantiated allegations with no facts and figures to buttress or This brings us to a publication in the Leadership Newspaper dated 27th September, 2016 with the caption “Taraba APC justify such claims as captured in the Newspaper.

calls for Governor Ishaku’s resignation” which is predicated If truly Hassan Ardo who has not work doing now, on falsehood, parochial interest and criminality credited meant well for the state, he should learn how best to to the state chairman of the party, one Alhaji Hassan Ardo. contribute towards the progress of the state rather than Earnestly, before considering the issues raised by bothering Tarabans who are now enjoying the dividends Ardo in the publication, it should be placed on record of democracy from the present administration under that the APC Chairman is a man who is suffering from DDI with sentiments along political or religious lines. frustration for his inability to deliver his party at the 2015 general elections in Taraba State. He must be outside This is chairman that cannot visit his hometown due to lack of the country not to know that Taraba State doesn’t owe popularity. Again, the APC chairman is condemning moves salaries. The happiness last can attest. And let him visit other states to hear their stories of salary payment! by the Executive and the legislative arms of government to reduce the tenure of local government council chairmen Emphatically, when a man like Ardo is calling on the to two years argued that two years was inadequate.

Governor who is rated 6th in the country for good performance in terms of development based on policies This argument by Ardo is baseless because any council and programmes that touched the lives of the people, it chairman who knows his onions can work wonders in one shows clearly that Ardo is ,only suffering from frustration year not even two years for the good of his or her people.

To say the least, such a pronouncement from Ardo is a blatant lie, mischievous and a shout of a drowning man who doesn’t want to be rescued by the man who is saddled with such a responsibility in Taraba State.

In Taraba State, the state government and the legislators have critically synergized by taking far reaching decisions to improve the lots of the people. There is no civil servant that is not paid in the state and the local governments If we can take a cursory look at the antecedents of except where measures are being put in place to block the Executive Governor of Taraba State, Arc. Darius salary leakages which had led to the over blotted staff Dickson Ishaku, people that mattered and those strength, leading to the ever increasing salary bills. who care to know will agree with me that DDI is Ardo Hassan who served and retired as an accountant an accomplished businessman/technocrat with well-known establishments across the country. is believed to be part of the perpetration of the salary leakages hence, his desire to stop the present Sometimes, the folly display by the likes of Ardo encouraged government from correcting and stopping the illegality. us to comment on their personalities. Therefore, it should Yes, the conduit pipe where Ardo was criminally be on record now and subsequently, that Ardo is a failed civil benefitting from is no longer there hence his insinuations. servant/businessman who left service due to his behaviour On teachers and local government staff, recently the and lack where to hold unto except in the APC for little or government paid staff of the local governments two months complete absence of knowledge about his past antecedents. after the biometric screening exercise and as such, Ardo The present administration in Taraba State under the able has no reason whatsoever to say the workers are not paid. leadership of Arc. Darius Ishaku has not only ensured steady I am calling on Ardo to always do his homework by being progress in terms of provision of basic infrastructures, objective if truly he wants to serve the interest of the people but had succeeded in a great measure in repositioning the state that was hitherto considered as unlawful due of Taraba State devoid of sentiments. He should also note to the myriad of security challenges that had bedeviled that Taraba State of yesterday is not the Taraba State of today. it in the past. Besides the aforementioned, DDI has also The government of Arc. Darius Dickson Ishaku is on course taken it as a point of duty and commitment to continually and is not prepared to give listening ears to distractors and the put smiles on the faces of civil servants by paying their likes of Ardo who are interested in the pull down syndrome. salaries as at when due, contrary to insinuations by Hassan Ardo that salaries are not been paid in the state. Ahmed Suleiman Karim is a Public Affairs Analyst with the DDI Rescue Watch Team based in Jalingo.

The magnanimity of Ishaku especially during this

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T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

EDUCATION Recession: Schools Offer Incentives, Seek Govt’s Support for Parents In view of the difficulties encountered by parents in providing quality education for their children amidst the country’s harsh economic situation, Funmi Ogundare and Esther Akintade examine some of the palliative measures adopted by schools to support them

Nigerian children deserve quality education despite economic hardship

The current economic recession in the country is affecting every sector including education; its attendant impact is the high cost of living. As a result, most private schools had to increase their tuition fees with the rise in exchange rate to sustain the payment of teachers’ salary for quality service delivery, as well as their welfare which is seen as an integral part of their core values. The prices of textbooks and other stationeries have also increased.

Already, many parents with children in schools are battling with unpaid salaries, half salaries, companies whose accounts have been blocked, retrenchments, higher fuel and transport charges, among others, while some parents that can no longer sustain the school fees they were paying as at the last academic session, have been forced to withdraw their children from private schools to public schools.

During THISDAY’s recent visit to the Lagos State Ministry of Education, an official confirmed that many parents have been coming to the ministry to seek transfer for their children, adding that transfers into public schools were conducted between July and August for junior secondary two (JS2) and senior secondary one (SS1) students to give them ample time.

He said for the transfer to be effected, parents must have applied and written a letter through the permanent secretary, and they must show evidence that their children had sat for and passed the Basic Education Certificate Examination (BECE) for those going from JS3 to SS1.

The Assistant Director, Public Affairs of the ministry, Mr. Adesegun Ogundeji, said the application and submission of forms for transfer closed this month, while attributing the mass transfer of students from private to public to schools to an increased confidence in public schools.

“There is increased confidence in our public schools which is responsible for parents wanting to put their children there, it shows we have been witnessing a lot of success. There has been

an increase in teacher/student ratio, serious commitment on the part of the teachers, as well as an improvement in infrastructure.”

He said parents do not need to gamble with the lives of their children. “We have children from public schools who are doing quite well; so many of them are also becoming one-day governor and others are also representing the state in international competitions.”

Some parents who were desperate to have their children placed in public schools even after the expiration of the application for transfer told THISDAY that the reasons for withdrawing their children from private schools range from their inability to sustain the fees they were paying before, loss of jobs, to relocation from their former places of abode due to the harsh economic condition.

A parent, Mr. Fatai Animashaun, who wants his children to be placed in JS1 and SS1, said he could no longer pay the N25,000 he was paying as tuition fee in a private school, adding that he had approached an official of the ministry who promised to help him out.

Another parent, Mr. Linus Mba, who came all the way from Abia State to secure a transfer for his child was told at the ministry that the state no longer does inter-state transfers.

He walked away dejected and disappointed.

While some parents expressed worry that some private schools capitalise on the economic downturn to increase school fees, others who can afford the school fees for their children are concerned about the cost of textbooks, saying that some schools are being deceptive about the whole thing.

Mr. Olawale Oshimiofa said some private schools claimed not to increase the school fees but tripled the cost of the books. “A child in basic three paying as much as N30,000 plus for books, which way Nigeria?”

Mrs. Felicia Odiahi, a trader said the situation in the country has made her to withdraw her son from an expensive school to a less expensive one.

“After enrolling my child in the new school I realised that there is nothing special

in expensive schools, most of them use the same syllabus.”

She advised parents not to worry over their children’s education in this hard time, saying that enrolling them in a less expensive private or even a public school is not a bad idea and that all they need to do is conduct an investigation about the school, environment and curriculum.

Nevertheless, some pricey private schools are offering discounts, installment payment of fees, as well as constant communication to help parents out of the doldrums, while other low income private schools under the umbrella of the Association for Formidable Educational Development (AFED) are appealing to the government to give loans to their schools to aid their improvement.

The Director of Little Saints Montessori Schools, Ilupeju, Mrs. Bukky Fadayomi, said though there is no increase in tuition fees in her school, parents are allowed to pay two or three times before the end of the term, unlike before when they could only pay once.

She said the school also gives discounts of 10 per cent to parents who come with two or three children.

The Principal of Christhill College, Amuwo Odofin, Lagos, Mr. Olaide Salako, said his school also provides incentives such as 20 per cent off tuition on the youngest child out of three; 50 per cent off tuition on the youngest of four; tuition-free off for the youngest of more than four children.

“We also give 10 per cent on tuition of every referred student. The same also applies to referral from three.”

A parent, Mr. Bosun Banjoko opined that installment payments of school fees are reasonable but that some private schools are a bit rigid on that.

Another, Mrs. Olufunke Ajala stressed the need for constant communication with parents, as well as a reassessment of its expenditure.

The Director of Supreme Education Foundation (SEF), Magodo, Mrs. Nike Adamolekun said: “Just the thoughts of how we are going

to cope is freezing. We need extra wits, luck, courage and direction from above. It is tough but God will get the tough going. Just stay focused on your priorities and leave the rest.”

The President of AFED, Mrs. Esther Ifejola, regretted that parents are forced to withdraw their children from its schools because some are not fully registered and may be clamped down, adding that the government should try and encourage them by way of loans to enhance investment.

“Government is not encouraging us in anyway especially the Buhari administration; they are jeopardising our efforts and parents are not happy about it. Economically we are very poor, we need a lot of finance to improve on what we are doing.”

She added that the government is not also helping matters, saying that it entertained Bridge Schools which charge the same amount of fees AFED schools are charging to further frustrate their efforts.

“Bridge Schools is owned by a British woman and charge the same amount with us. They bring in sophisticated gadgets to enhance teaching and learning for the pupils, but for us to be able to access those gadgets, it is a challenge. The modern teaching is very expensive, that is why we are calling on the government to assist us so that we have access to loans.”

She expressed her readiness to go round the AFED schools this session to inform its members about the need to get approval and also ensure training for their teachers, adding that the moves will make parents bring back their children to its schools.

The Principal of Christ the Ultimate International School, Ago, Okota, Mr. John Agugo, said though his school is also facing the same challenge, it has a good rapport with parents and plans to hold a Parent Teacher Association (PTA) meeting to discuss with them.

He added that the prices of textbooks and uniforms have been reduced to lessen the financial burden on parents.

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EDUCATION

UK Group: Parents Still Send Children to Foreign Schools despite Forex Scarcity Senator Iroegbu in Abuja The United Kingdom (UK) pre-university school, Abbey DLD Group of Colleges has disclosed that Nigerian parents still strive to send their children and wards to schools abroad despite the current forex restrictions.

The Students Admissions Manager for UK’s Abbey DLD Group of Colleges in Africa, Mr. Muazu Jalaluddeen, who disclosed this during a media briefing in Abuja, said the UK has an international reputation for the quality of its education system and the qualifications offered by British schools,

colleges and universities are recognised globally as hallmarks of excellence and distinction.

To this end, he said there are still many wealthy Nigerian parents who are prepared to pay for quality education for their children, adding that one of the biggest legacies parents can leave to their children is quality education such as the one offered by Abbey DLD Group of Colleges, a set of pre-university schools that prepare students for admissions into some of UK’s prestigious universities.

He stated that Abbey DLD’s Nigerian students come from the country’s wealthy and successful

families and it is expected that the fall in the naira will increase the cost.

“But we expect it to have minimal impact on the number of Nigerian admissions over the long-term. Due to our success at securing top university places we are still recruiting excellent students from Nigeria.”

“Definitely, the forex is affecting the whole system because the parents now pay more to train and educate their children abroad. But as you know the greatest legacy you can give to your children is education and that is why parents still send their children abroad for studies.”

Jalaluddeen stressed that foreign education should be exempted from currency restrictions to ensure that Nigerian families are not penalised for wanting the best international education for their children.

He also noted that Nigerian students are some of the brightest in the world and have excelled in most of the schools they were admitted, urging the government not to deny the parents the opportunity to enroll their children in some of the best universities.

To ease the difficulties created by the forex regime, he said the group has devised a payment plan that will help parents send

their children to the universities of their choice.

“We have devised a payment method to help ease the pains and difficulties caused by the current forex regime and the first is to encourage them make payment in advance and a spread payment plan in installment basis. We also give parents some percentage discount on the payment.”

Jalaluddeen revealed that most Nigerian students often complete their secondary education with an O’Level which is not the same as the required A’Level needed to gain entry into UK universities.

He said their schools includ-

ing Oxford, Cambridge, University College London (UCL) and Imperial College London, regularly feature in the world’s top 10 and employers around the world look favourably upon UK graduates.

“Our courses include comprehensive GCSE, A’Level Programmes and a number of international foundation programmes,” he said, adding that going to pre-university schools in the UK such as Abbey DLD allows Nigerian students to “acclimatise” and achieve the grades they need to outdo other international students competing for places at top UK universities.

Lagos to Clampdown on Unapproved Schools from 2017 From the next academic session, the Lagos State Government has said it will no longer allow any school to operate in the state without approval.

The Deputy Governor, Dr. Oluranti Adebule, who disclosed this at the third quarter stakeholders’ forum with the theme ‘Entrenching Best Practices’ held recently, said the government is not comfortable with the discovery that over 15,000 private schools are operating in the state and only 4,556 are approved and registered, adding that about two-third of private schools are operating illegally in the state.

She said government’s attempt to capture all schools, irrespective of their approval status was frustrated as most unregistered schools failed to take advantage of the opportunity and easier procedure put in place by the ministry of education.

“The government was neither deterred nor frustrated, rather it will in the course of time engage with the various associations on the way forward.”

A total of 119 school proprietors received their letters of approval at the programme.

Adebule congratulated the proprietors and recalled that 114 private schools got their provisional approval letters in April.

She said as an enabler and regulator, government has reviewed and streamlined the school registration processes by ensuring that registration is time-bound and the procedure and processes for the establishment of private schools are transparent.

According to her, no nation or society can develop better than the quality of human capital, adding that the foundation of quality human capital is the primary and secondary learning institutions.

She said the forum was aimed at demonstrating avowed commitment to continuously evolving inclusive education sector development strategies

for the state, while calling on private school proprietors to collaborate with the state to consolidate energies, integrate their thoughts and work as a team.

The deputy governor, who also kicked off the school census for private schools, said government as a responsible facilitator seeks to ensure that all children have access to quality learning environment, as well as establish effective regulatory policies that will make quality education possible and sustainable.

“Part of the tools required to perform our task as a regulator is accurate and precise data which the proposed school census was intended to provide for the education sector,” she said while seeking the support and cooperation of the proprietors to ensure the success of the exercise.

The Permanent Secretary, Ministry of Education, Mr. Adesina Odeyemi, warned all school proprietors in the state to be wary of fraudsters around the town parading themselves as education officers.

He implored individuals and associations not to offer gratification or bribe to any official as no official is mandated to fine or collect dues from any proprietor.

He stressed that whatever is due as legitimate fund for government should be paid directly to the coffers of the state rather than by proxy, while appealing to the proprietors to seek advice from the ministry when they are not sure of what to do.He said the ministry is ready to take up issues bothering on extortion, over-zealousness or any other vice on the part of its personnel, while soliciting the support of all stakeholders to promote and ensure that values are upheld and standards maintained in the sector, especially in this era of economic recession.

“Parents must have value for money and the learners to be properly groomed.”

EMPOWERING YOUTHS

The Group Head, Communications, UBA Plc, Mr. Charles Aigbe (fifth left) and Managing Director, UBA Foundation, Ms. Ijeoma Aso (fifth right), with some secondary school students during the launch of the 2016 annual UBA Foundation National Essay Competition for secondary schools, held at the UBA House in Lagos… recently

Children’s Education, Devt My Priority, Says First Lady Nosa Enobhayisobo and Oluwatosin Komolafe in Abuja The first lady, Mrs. Aisha Buhari, has described children’s development and education as one of the major focus of her projects.

Mrs. Buhari, who was represented by the wife of the Vice-President, Mrs. Dolapo Osinbajo, stated this at the inauguration of the Defence, Police Officers’ Wives Association (DEPOWA) Daycare, Nursery and Primary School in Abuja.While highlighting

the importance of education, she said it would help define the future of Nigeria.

“The focus today is our precious children and their education. These are two issues very close to my heart. It gives me great joy when I heard the progress of the project in ensuring quality education for our children and I thank you all for your contribution and sacrifices that is being unveiled today.

“Knowing the ladies that make up this association and how great their service chiefs that have given them the wings

to fly and supported them, I am assured that the education in this school is not limited to academics only, but extends to much more.”

According to the first lady, the culture of excellence among the military, the patriotism and national building that the armed forces are laying would be part of the education imparted in children in the school.

Mrs. Buhari said the speed of completion of the project suggests focus, dedication and diligence, saying, “these are values that appear to be at the

very heart of DEPOWA and I believe these same values are passed on to their children in the school.

“From the bowels of this school, I pray it would precede exceptional Nigerian children, trained and nurtured on the importance of these values.”

In her remarks, the President of DEPOWA, Mrs. Omobolanle Olonisakin, said the school project was in line with one of her aims and objectives to render assistance to the barracks community and its environs.

Katsina Needs 13,000 Teachers, Says Masari Ibrahim Shuaibu in Katsina To meet the required standard in education, the Katsina State Government has said it requires 13,000 qualified teachers for primary and secondary schools in the state.

Governor Aminu Bello Masari, who disclosed this shortly after inspecting the ongoing renovation and upgrading work at the

Government Science Secondary School, Batagarawa, said already government has approved the recruitment of 1,900 teachers mainly in science subjects.

He said it is the intention of his administration to achieve 50 students per class in schools across the state and promised that each classroom would be provide with furniture to create the required conducive

atmosphere for learning in them.

Masari was conducted round by the Director of Building with the state Science and Technical Education Board, Gambo Mashi and the Principal, Umar Lema, where he inspected the construction of additional three dormitories and one additional block of classrooms.

At the Family Support School in the state capital, the governor

also inspected the ongoing state-of-the-art laboratories structures, examination hall and the drainage under construction at the school.

The Project Supervisor, Nakano Lawal and the contractor KSK, who conducted the governor round told him that the new examination hall can accommodate 300 students at a time.

She sa tional cla of the ne school w the begi Oloni

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T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

EDUCATION

CAS on Importance of Education, to Reduce Poverty Senator Iroegbu and Nosa Enobhayisobo in Abuja

The Chief of Air Staff, Air Marshal Sadique Abubakar, has said education is the only way to build a wealthy, sustainable income and lift millions out of poverty in Nigeria.

Abubakar stated this at the inauguration of the Air Force Girls Comprehensive School (AFGCS), Nigerian Air Force (NAF) Base, Abuja.

Quoting late Nelson Madela, he said “education is the most powerful weapon, which you can use to change the world.”

According to him, “the long-term economic, social and personal gains from education are proven and need no further emphasis. Education impacts skills and competences that is central to human development and enhanced quality of life, bringing wide range of benefits to both individuals and societies.

“For us in the Nigerian Air Force, the provision of quality education for families and wards of personnel has been an invaluable tool for the motivation of

officers and men for higher performance, commitment to duty and effective service delivery.”

Abubakar added that the idea of the project was from the Nigerian Air Force Officers’ Wives Association (NAFOWA), but NAF’s involvement was because NAFOWA could not handle it and needed assistance.

He stressed that girl-child education is a crucial antidote to terrorism and being recruited by terrorist groups like Boko Haram in the north-east.

“In considering this school for girls’ education, various thoughts came to mind. Firstly, there was the need to enhance the welfare of personnel which is a key driver of vision. More importantly, our experience in fighting insurgency in the north east indicates the exploitation of the girl-child by insurgents due to low literacy level.

“At present, birth rate statistics show that 65 per cent of births are girls only, 35 per cent are boys. Interestingly, the death rate statistics shows the male death rate to be 60 per

cent while the female rate is put at 40 percent.”

Abubakar added that “records show that accident claims more male than female due to the struggle for survival. In spite of nature’s gift to women, it is documented by most state ministries of education that the enrollment of girls’ secondary schools is below 45 per cent.

“In the period of 2013 to 2014, the completion rate of girls in most states was low. This statistics is further supported by the results of the West African Examination Council within the same period.

“For instance, in 2011 out of a total of 688,516 girls that sat for the examination, only 226,804 got five credits. Similarly in 2012, about 747,553 girls sat for the examination and only 310,822 were successful. The result of the 2016 WAEC result is not any better.”

He said the NAF has also planned to build more schools in future “as our modest contribution to the president’s effort at enhancing girl-child education in Nigeria and to

further strengthen the belief that when you educate a woman, you educate a generation.”

The air chief said the new secondary school will reduce social vices related to the girlchild. “Today we officially open the doors of this school to female students, shielding them from societal vices. It has often been said that when you open the door of a school, you close the door of a prison.”

In his remarks, the Minister of Education, Mallam Adamu Adamu, said every Nigerian child has the right to education.

Adamu, who was represented by the Permanent Secretary, Federal Ministry of Education, Mrs. Folasade Yemi-Esan, said education is a fundamental related human right, adding that education and development are related and inseparable.

“It is in recognition of this importance that I will agree with the CAS, that education is the most important instrument of change.

Education will continue to rank high and remain an integral factor in our country’s

ALL FOR QUALITY EDUCATION

L-R: The Managing Director, Resourcery Plc, Mr. Tani Fafunwa; a member of the House of Representative, Honourable Mojeed Alabi; and the Deputy Vice-Chancellor (Management and Services), University of Lagos, Prof Duro Oni, at the 2016 annual Fafunwa Educational Foundation conference in Lagos... recently

Firm Partners LASTVEB to Empower Technical Funmi Ogundare

Tr a n t o u c h aid the funding of addi-International assrooms and inaugurationLimited has conewly completed secondarycluded plans to was a major problem athold a Technical inning of the project. Student Entreisakin recalled that thepreneurial and Empowerment Conference (TECHSEEC) as part of efforts to bridge the skills gap among youths and boost the employability of students of technical colleges in Lagos State.

Speaking at the signing of a Memorandum of Understanding (MoU) with the Lagos State Technical and Vocational Education Board (LASTVEB), the Managing Director of the or-

ganisation, Mr. Collins Uwadia, said the one-day programme would hold in November 19 for final year students of the technical colleges, adding that they would be trained for a period of three to six months depending on the courses they applied for.

“The programme is designed in such a way that they must be able to come up and showcase their creativity and at the end of the day get rewarded for it. We are going to train the students and make funding available for research and development.”

The acting Executive Secretary of the board, Mr. Olaolu Oguntuyi, said with the partnership, Trantouch would also be training about 6,000 of its students on an annual basis.

“The training will be for a period of three to six months after their examination in conjunction with SLOT, Metrosoft and G-Connect in the areas of GSM repair, graphic design, basic computing, business writing, customer relationship management and social media engagements.”

Oguntuyi, who highlighted the impact of the private sector on education, said since technical and vocational education is capital intensive, no success can be achieved without their input.

He added that the students would undergo training in attitude, character traits, team work, communication, among others, saying that these are the soft skills needed to make them globally competitive.

“This programme will be the first of its kind to be hosted in Lagos and at the end of the day, it will change the mindset of students going into vocational education. If other states are doing the same thing, the issue of employability will be a thing of the past. We need to keep ourselves abreast of latest technology.”

The Chief Executive Officer of Rhoda Michaels Fashion Academy, Mrs. Rhoda Agbeyo, who promised to partner the organization, said it is imperative for Nigerians to embrace vocational education. She said the skills set missing in youths and graduates could be gotten from vocations.

“We have the problem of unemployment in the country,

A Teacher’s Diary

Kehinde Omoru

Nigeria is ‘Deeply Cut’ Presently, Nigeria is deeply cut by Hepatitis B. There is reliable literature revealing that Nigeria is significantly riddled by the Hepatitis B virus.

Daily we as a nation continue to pass down this virus via some of our communal practices and lifestyle choices. The World Health Organisation (WHO) has warned that Hepatitis B’s prevalence is highest in SubSaharan Africa and East Asia.

Furthermore, WHO informs that five per cent-10 per cent of the adult population is chronically infected.On a health promotional and enlightenment drive, I present to you ‘Deeply Cut’- a movie that enacts the prevailing nature of Hepatitis B among us. Deeply Cut is currently showing in all Genesis Cinemas across Nigeria until October 6, 2016. Deeply Cut stars famous Nigerian Nollywood artists like: Eniola Badmus, Kiki Omeili, Funky Malam, Efe Henry, Ashionye Racca, Judith Audu and Lord Frank.

Approximately half of all hepatitis is caused by viruses.

Therefore we say that the individual has viral hepatitis and classify its different forms as Hepatitis A, B, C, D, E, and possibly G. However, Hepatitis A, B and C are the most common forms of viral hepatitis. In clinical settings, these forms are abbreviated as HAV, HBV, HCV for hepatitis A, B and C respectively.

During the first few weeks after the liver has been infected with the virus, that is the acute phase of the infection, some individuals may experience

no symptom of illness at all. In addition to this, during the acute phase, their body’s defenses may even successfully fight the virus and clear it from their body. On the other hand, where the individual falls sick, in the acute stage of the infection, the symptoms expressed include: fatigue, fever, poor appetite, nausea and jaundice.

For many years hepatitis B and C viruses may continue to replicate and gain ground as a ‘resident infection’ in the liver. The non-suspecting individual experiences mild and non-specific symptoms or no discomfort at all. In this chronic phase, the virus gradually damages liver functions, scars it (cirrhosis) until it eventually causes liver failure or liver cancer. As in the acute phase, the symptoms experienced in the chronic phase of hepatitis A, B and C, include: fatigue, nausea, poor appetite, stomach pains, fever, dark urine, light colored stools and yellow skin and eyes- jaundice.

Viral hepatitis is infectious and therefore preventable. As with most infectious diseases, avoiding an exposure to the viruses is the best preventative measure. Excellent infection control measures also curb the spread of the viruses. Vaccines are also available for the prevention of hepatitis A and B. Medication is also available to slow down liver damage. Consult your health service provider if you are experiencing the symptoms described above.

Omoru writes from the UK

NIM Honours JABU VC, Others The Nigerian Institute of Management has honoured the Vice-Chancellor, Joseph Ayo Babalola University, Prof.

Sola Fajana; Chief of Naval Staff, Vice-Admiral Ibok-Ete Ekwe Ibas; Director, Human Resources Management Department, Tertiary Education Trust Fund (TETFund), Alhaji Aminu Anans with the fellowship of the institute.

The fellowship was recently conferred on them at the 2016 Awards, Fellows and Spouses’ Day Luncheon Organised by the institute in Lagos recently.

The luncheon tagged ‘Rebranding the Nigerian Professional from Goodness to Greatness’ was in recognition of the crucial roles that the inductees had played as prime drivers of management values, standards and professionalism in Nigeria.

In his remarks, the President and Chairman of Council, Prof.

Munzali Jibril, enjoined the awardees to continue to be good

ambassadors of the institute in all their endeavours.

He also urged them to remember that the status of fellowship of the institute is sacred and holds no compromise.

Fajana, who was recognised for his wealth of experience, achievements and service to the country, the institute, and the academic environment, secured the highest award of the institute as a testament of his professionalism and recognition of his contributions to humanity.

Speaking on behalf of the recipients, the university don said the award is a call to higher service to the institute, the management profession and the country.

He said the recipients will continue to contribute their talents, time and treasures towards generating desirable ideals that will further impact on the Nigerian society.

T H I S D AY • WEDNESDAY, SEPTEMBER 28 2016

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EDUCATION

‘Private Sector Participation in Education is Essential’ Mr. Adolphus Abraham is the Group Head, Education of Sterling Bank Plc. In this interview with Uchechukwu Nnaike, he highlighted the various challenges in the country’s education sector and the bank’s efforts to remedy the situation How would you describe the current state of education in Nigeria and what do you consider the major challenges facing the sector?

To put it succinctly, I would say that the industry is decrepit and at the same time emerging. Decrepit when you consider the challenges, but emerging when you look at private participation and the volume of investment being made.

The challenges facing the education sector are complex and humongous. I will like to start by emphasising the challenges of dearth of infrastructure. There are also the challenges of systemic decay of values, dearth of manpower, obsolete learning methodology, unnecessary bottlenecks for new entrants, misplaced priority on the part of industry players, lack of continuity and consistency of sector policy, weak regulation and control, extinction of skills training for players and weak financial system to adequately support the sector.

Indeed, government should increase the budgetary allocation to the sector to enable it attain the 26 per cent set by UNESCO. Budgetary allocation to the education sector has increased over the years but at a decreasing rate. What do I mean? Take budgetary allocation to education between 2010 till date for instance.

In 2010, the budget was N234 billion, N306 billion in 2011, but in 2014 and 2015 it jumped to N493 billion and N492 billion respectively.

These figures seem interesting but when you compare them to the budget size, you will be shocked to see that we contribute less to education on a yearly basis. In 2014, allocation to education accounted for 10 per cent of the total budget, while in 2015 it dropped to 6.2 per cent due to the disproportionate income in budget allocated to the sector.

So what is the way out?

Beyond government, there is need for urgent intervention in the education sector by the private sector operators because government cannot do it alone. This is why we have decided as a bank to focus on the sector. Sterling Bank’s intervention in the sector will help to ameliorate some of the challenges faced. Over the years, youth unemployment has remained one of the daunting challenges in Nigeria, as recent statistics show that over 25 million youths in the country are unemployed. This abysmal statistics is linked to, among others, the issue of employability as even where jobs abound, the lack of competence to handle them arises. This problem can be attributed to the declining quality of education in the country. This necessitated our foray into education as we too suffered the lack of employable graduates. We hope to aid the reduction of unemployment in white collar jobs and also contribute to developing businesses for Nigerians.

I would also urge that capacity building be given adequate and conscious effort by concerned parties, be it teachers, administrators, owners, regulators etc. to develop themselves; imbibe the right attitude and paradigm shift in their value system. There is also the problem of service delivery which I should have mentioned earlier.

Stakeholders should be conscious of the manner with which they deliver service and the quality.

Customers in this sphere are open to alternatives, both locally and internationally to satisfy their educational appetite. Consumers of educational facilities should also hold administrators accountable and demand quality. These days, vibrant Parent Teacher Associations (PTA) are springing up, getting involved and active in the manner their institution of interest is run.

What doesn’t get measured they say doesn’t get done. So providers of educational facilities should be held accountable for their product.

Recently your bank set up the ‘One Education Desk’ why did you venture into this business despite the enormous challenges?

The involvement of Sterling Bank in the education sector is very strategic. Strategic in the sense that our position is based on the outcome of various research conducted by the bank to determine the state of education in

Established a functional e-library in College of Education, Ikere-Ekiti. It cost almost N100 million, but our joy is that the academic community in the school appreciates it and are putting the library to optimal use. We look forward to replicating this in select tertiary institutions.

Supported our customers in the construction of hostel accommodation for schools on a build, operate and transfer basis. This model helps eliminate the huge interest burden that would have arisen should the exposure be a direct lending especially during a recession.

Supported the Internally Displayed Persons camp in Jos with various educational and financial resources.

In collaboration with our content and hardware partners- Cenfores and Intels, we trained school owners and their teachers in Abuja, under the umbrella of NAPPS, on practicable ways of using ICT to improve the quality of education to reduce operating cost.

Abraham

the country and areas that require immediate intervention. There are two sides to education, the academic side and the business side. Most often, we concentrate on the academic side at the expense of the business. Our idea is to use the business orientation to drive the quality and delivery of academics. We have designed models to achieve this. It is not straitjacket.

Every project has its own solution and this is driven by a thorough understanding of the problem or issue. Understanding the problem and adopting the appropriate solution is where we have strength as a bank.

Let me say here that the federal and state governments are doing their best to improve the sector. But government by its structure does not have the capacity to achieve the desired result. Don’t forget that government has a lot of other things to attend to. So it is our intention to introduce a unique model to support the various educational institutions including government in the country to drive the quality and delivery of academics.

What do you have to offer the sector?

What we bring to the table is the combination of tactics and strategy on one hand with finance on the other hand. What we want to achieve for now is to make necessary impact by focusing on technology, content and personnel/ participants in the sector.

It is worth noting that Sterling Bank is the first and only bank to publish two books on financial literacy for kids and teenagers. These were distributed free to the kids nationwide during the Global Financial Literacy Week two years ago. The second edition of the books was distributed to the children during last year’s Financial Literacy Week and also this year all over the country. There is need for institutions to promote financial literacy among students which would provide the foundation to understand the use and management of money to ensure the child’s long-term financial security and equip them with the ability to make informed and effective financial judgments.

This is what we are doing at the bank. We take each group, either students or teachers and provide solutions that make their lives richer.

Secondly, to help education providers manage cost and quality, we have built partnerships

with technology providers for the sector. These partners are equipped to provide educational content, payment system, inventory management, security management etc. at lower costs than the schools are currently spending.

Lastly, we have not left out the value chain.

We are also determined to support publishers, bookshops, importers of educational materials, contractors, consultants to educational outfits to mention a few. Our package for the industry is holistic.

What specifically have you achieved so far?

The One Education Group is less than two years old. We have had to run a pilot to fully understand the business and the responsibility expected of us. So in the few months of existence we can conveniently outline our achievements: Adopted a public school for mentoring and infrastructural upgrade. We are going to be doing this annually. Every year, we will adopt a school. This year it was Ireti High School in Ikoyi and we have trained their teachers on financial literacy and the renovation of their home economics laboratory is currently ongoing.

Established Financial Literacy Clubs in schools for free. Combined population of students is in excess of 10,000 children. We are signing on more schools come September 2016 as we build capacity of the trainers. Currently, all resources are sourced in-house.

Deployed school management system and payment gateway for free to schools. We shall deploy more as we receive applications.

The benefit of a web pay system cannot be overemphasised. They range from completeness and accountability of collections to proper documentation and quality service delivery in schools. It cost so much to deploy but we are giving it to schools for free.

Sponsored mathematics competition organised

by Caleb Group of Schools.

Partnered with one of our technical service providers to train over 1,000 children during the last summer break on coding and computer skills.

Published over 10,000 copies of financial literacy books. They include ‘My Little Money’ and FUND books. They were all developed in-house and distributed to schools.

With the resumption of schools nationwide, what package do you have for students, their parents, schools and their staff?

Schools resumption in September is very important to us hence we developed what we call ‘Back to School’ pack. This pack provides for all parties in the educational ecosystem. I will quickly say that for the schools, we have decided to finance them against their collections.

This is expected to give them quick, short and simple access to financing for those that will be looking to prepare their school for the next session; deployment of Eduportal and Payment Gateway which is expected to assist them in the collection and monitoring of fees, textbooks and other education material finance.

We have accomplished this by entering into strategic partnership with notable publishers and book vendors.

The idea is for schools to have access to the books of their choice and have the option of determining how and when to pay. The teachers are not left out. There will be training for teachers and school owners during this summer. We also have all types of financing offerings which include training finance meant to help them pay their fees for any training in any part of the world.

Our package for the students is not exhaustive. This summer, we have trained over 1,000 students aged between eight and 15 on computer coding and robotics. This is a reward for I-CAN Save accounts opened with the bank.

For the parents, they can approach us to finance the payment of school fees for their children and wards. For the students in higher institutions, they will be exposed to what we call career fairs on resumption. It is expected to give students opportunity for internship and employment. As we speak, we have quite a number of students across our network spending between six months and one year of internship. They are all products of our career fair.

What should we expect from the bank in the next two years and what is likely going to be your position in education financing in the next five years?

In the next two years, we expect to expand our footprints in the education sector with more collaboration with stakeholders in the sector from pre-primary to tertiary levels and the regulatory bodies. We want to boost infrastructural support and empower teachers and students.

Our aim is to be the partner bank for two out of every three educational institutions/ stakeholders you come across. This includes students, schools, teachers, administrators, regulators and funding agencies. More specifically, we want to take the front row in the education discourse in this country. We want to initiate, advocate and influence policies in the sector and we also want to be a reference in education finance in the country.

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T WEDNESDAY, H I S D AY • WEDNESDAY, SEPTEMBER SEPTEMBER 14, 2016, • T28, H I S2016 D AY

CITYSTRINGS

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

The Route March A Different Kind of Carpentry

Chiemelie Ezeobi writes that to test personnel fit for military duties, to foster espirit Yinka Olatunbosun reports on a rare findcommand’s at Fountain Fields, Ikeja where wood de corps, as well as to deter criminality in the area of responsibility, work isn’tof just work personnel thehard Naval Training Command and its sister agencies went on a route march in Lagos

The route march in action

The carpenters at work

A

good-spirited gathering of architects inside Ikoyi recently led this reporter to a state-of-the-art carpentry workshop in Oregun where carpenters have kissed tools like chisel, saw, pry bars and hammer, goodbye. It began as a light-hearted conversation over cocktails and the manager, Fountain Fields, Harry Eta-Besong, clad in well-tailored jacket introduced himself as a carpenter. Naturally, the warped image of a non-lucrative blue-colour job came to mind.

As though that was not surprising enough, the distinguished-looking CEO, Kayode Oduwole, adorned in regal traditional attire, seemed to enjoy the surprised expression on the reporter’s face more than the content of his transparent glass cup.

“You should come to our workshop,’’ said Oduwole, sensing the curiosity in this reporter as regards the nature of wood work they peddle that make them look so polished.

Last week, the overdue visit was paid to the workshop that is equipped with high-power machinery to perform tasks in carpentry.

Oduwole, a retired architect, spends his day time supervising the work of his employees who work from eight to five with a compulsory one hour break. He learnt a while ago not to neglect that oversight function to anyone.

Precisely in 2008, he shut down the facility and only reopened five years ago.

“We had some internal problems and we had The FOC with flanked bywood his menand paint,’’ he began. issues the “The manager then began to compromise

U

ndoubtedly, in the face of current security challenges in the country, the need to keep personnel fit for operation cannot be overemphasised.

This is why fitness and mental alertness are among the critical elements of the Chief of Naval Staff, Vice Admiral Ibok Ette Ibas’ policy thrust.

Thus, to ensure that its personnel are fit to carry out their military duties, especially in the face of insurgency and militancy bedevilling the North-east and Southern part of the country, the Nigerian Navy (NN) recently conducted

on standards. I am an architect and I was in active practice then. I was just doing this out of passion. But he decided to be unfaithful.

I care about my integrity a lot. I shut down the facility in December 2008 and paid off all salaries and allowances. So in 2011, I began to research into how doors are produced in

They use this machine to make keyholes so that they are neat. We don’t use chisels. This is the wood molder- it can be used to carve wood. This one is used to measure the thickness of the wood for the desirable size to be achieved. This one cuts wood into various lengths.

That is the edge binder.

We use it to seal up wood edges to make them look neat

a physical fitness test on its officers and men in Lagos.

A firm believer in leadership by example, the 10km route march that started from the naval base in Apapa to Costain Roundabout and back, was led by the Flag Officer Commanding, Rear Admiral Ifeola Mohammed.

The 10km march, which was targeted at keeping personnel fit for military duties, was held in the Lagos Area of Responsibility (AOR) and it was a prelude to show the level of preparedness of the navy and was targeted at keeping personnel fit for military duties, fostering espirit

other climes,’’ he recounted.

In his research, he toured a wood work factory in Turkey and recorded a short video which he showed to this reporter.

“The machine they had there could only make the normal doors. But our machines can make longer doors. I went there to learn how these things are done. You see how that door edge is made. We decide to lift that edge to protect the door. We also place honey comb in the door carcass and add reinforcement to it. They don’t do that. They only place the honey comb in the carcass,’’ he said.

With protective masks fastened around the neck, he motioned to this reporter to follow him on a tour of the facility. No carpenter was sweating; the floor was clean except for a pile of wood scrapings that was heaped at the corner towards the exit door. Oduwole explained how each machine works over the noise from the compressor.

“They use this machine to make keyholes so that they are neat. We don’t use chisels.

This is the wood molder- it can be used to carve wood. This one is used to measure the thickness of the wood for the desirable size to be achieved. This one cuts wood into various lengths. That is the edge binder. We use it to seal up wood edges to make them look neat,’’ Oduwole said as he walked towards a pile of fresh wood.

There are woods for making kitchen cabinet and it is rarely imported by carpenters because of its high cost.

“The door vent allows for ventilation.

de corps and providing an avenue as well as to deter criminalities in the command’s area of responsibility.

It is with this in mind that the Nigerian Navy usually organises the one-day route march every quarter aimed at raising the level of physical fitness of personnel.

This route march, which is the third quarter route march in the navy’s calendar, was carried out by officers and ratings of the command in Lagos area with the objective being to give confidence to the Nigerian public on the preparedness of the navy in securing the territorial domain of the

Instead of hammer and nail, this is what we use. Touch it,’’ he said, as this frightened reporter-guest jumped at the startling sound of a device used instead of a hammer that works literarily like a stapler. When asked if there is any hammer in the workshop, Oduwole smiled as he explained why the facility has ruled out old tools.

“We have but we don’t base our operations on such tools. We have a mechanised system. We try to simplify the work as much as possible,’’ he said.

He showed the different sizes of the honey comb to this reporter and the photo-journalist who squatted in front of the fountain of saw dust to take some shots.

“The only thing we obtain here in Nigeria is the wood,’’ he continued. “The South-west has the largest deposit of wood in Nigeria.

We have the products and the quality that can compete with international standards. We have the capacity to make 96 doors in one day.

“We have produced doors for a college in Abuja in 2013. Then we had some people who were suggesting that they should have imported Chinese doors. But they gave us the contract and we executed it. I never met the school owner until recently. And when he found out that we made their doors at the school he was really happy. ‘We are enjoying those doors,’’ he said.

Inevitably, they have specialised at making doors, including well-fortified security doors one of which he invited this reporter to lift. It was the best answer to the question of why they

armed forces, thus enforcing the fact that the NN is prepared physically to support government in all the endeavours; security-wise, that might be thrust on the navy.

The March Imagine hundreds of uniformed men marching along the streets of Lagos. It was a sight to behold as the personnel walked in pairs of five in different squads in an orderly manner. Led by the Special Boat Services (SBS), followed by the ratings squad and then that of the officers, the route march was truly a spellbinding moment.

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

37

CITYSTRINGS building route march as related to internal security operations.

The personnel had first assembled as early as 6am at the Nigerian Navy Ship (NNS) Quorra parade ground, located inside NAVTRAC, Apapa, Lagos, before they walked as far as Costain under bridge and back again to the base.

To sustain the momentum of the walk, the personnel chanted morale-inducing songs from the take off point at 6am till they all later rendezvoused back at the parade ground of NNS Quorra at exactly 8.05am.

When the troops of NAVTRAC and elements of the NSCDC, DSS, Police and FRSC got to the parade found, the physical training instructor took the exercise group through several exercises to warm up and iron out any kinks in their muscles.

One of the highlights of the march were the elements of the SBS, who took to chanting their creed, before the entire personnel of the command gave three hearty cheers to the FOC by removing their head dressing before the general salute fanfare.

The FOC’s Address After the exercise routines, the FOC NAVTRAC, Rear Admiral Ifeola Mohammed, mounted the podium to address. He said, “This is the third Quarter Route March and it’s a show of selfless service and willingness to desire continuation and offer credible service to the Federal Republic of Nigeria.

“I congratulate you for turning out cheerfully to do us proud. Route marches are organised in Nigeria as a show of our commitment to continuously defend the territorial integrity of Nigeria as a a means of reassuring the general public that we are willing and ready to defend them at any point in times of either peace, insurgency and situations of war.

“Throughout the route march, everyone conducted themselves well. There was no molestation of civilians. I saw women with children who tried to cut through the ranks but the internal security and personnel merely told them to leave.”

Addressing the under-training officers and ratings he said, “Within the last three months, the Chief of Naval Staff, Vice Admiral Ibok Ette-Ibas, has redoubled all efforts to see to the issues of accommodation, renovation of buildings and construction of new ones are already taking place all over Nigeria.

“The CNS has put in place 100 compressed buildings and they have been completed and furnished. Again, new structures are springing up in Navy Town, Ojo, and virtually all the commands have one new project or the other.

“This comes at a huge cost to the Nigerian Navy. It is because of the determination of the Navy Headquarters to leave a legacy and the necessary resources and tools you need to work with. The CNS went ahead to construct 60 Epenal boats, which has been inaugurated and deployed.

“Our newly built tugboat Nigerian Navy Ship (NNS) Ugwu and the second indigenous built NNS Karaduwa and the one still expected from China, as well as the arrow heads and wave riders inaugurated is for you to protect the territorial domains of the Federal Republic of Nigeria. We are ready to give you the training and experience you need to set the rightful skill and knowledge for you to perform in the field as young officers and ratings.”

He charged them to, as a matter of necessity when they finish training and have been imbued with confidence and “when you get to the field and see what’s wrong, don’t join them, rather by strength of character, show them that you just passed through training at NAVTRAC. “Through deliberate introspection, generate your own motivation and don’t join up in the

The Navy band in action

Elements of the Special Boat Services

R-L: Commodore Sola Adebayo; NNS QUORRA Training Captain, Livingstone Izu and the Flag Officer Commanding, Naval Training Command, Rear Admiral Ifeola Mohammed and others, at the third quarter route march

It was a show of solidarity and camaraderie. I didn’t see any of them drop. They were even cheerful to the end of the route march, especially the women

grumbling because if you do, you will end up sad and frustrated.”

On interagency collaboration exhibited during the walk he said, “It was a show of solidarity and carmaderie. I didn’t see any of them drop.

They were even cheerful to the end of the route march, especially the women.”

While lauding the press he said, “The press turned out for the exercise and they were dressed appropriately. We cherish the support you give to us by publicising our activities so that Nigerians

will know we are not sleeping.”

Since capitalisation is currently ongoing in the force, even with the best equipment if they do not have a well-honed personnel, it’s simply stating the obvious to note that they would not be able to deliver on their mandate.

Given that, the aim of walk, which was to ensure that they are physically available to match the sophisticated equipment that has been acquired for the NN, was a step in the right direction.

At the end of the exercise, the objectives of ensuring fit personnel was not just achieved, but also civilians who joined the exercise were better off for it.

The route march also signaled to the onlookers and motorists in the area of the readiness of the navy to battle co tempera challenges, just as it passed a strong message to the residents of Ijora and its environs, thus reminding them of the nearness of the navy to respond to their distress calls.

38

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

BUSINESS/MONEYGUIDE

Experts Harp on Reform of Nigeri’s Tax System Chinazor Megbolu In order to boost tax administration in Nigeria, experts have stressed the need for critical reforms of the country’s tax system as well as its profession.

They made this remark during the 2nd Chief David Ajibola Olorunleke Birthday Lecture organised by the Chartered Institute of Taxation of Nigeria (CITN) held in Lagos at the weekend. The guest lecturer, Dr. Mark Abana, while speaking on the theme: “Professionalisation of Tax Administration in Nigeria, a Case for Critical Reforms,” pointed out that though, the National Tax Policy was being reviewed, unless there was a modern, competent and efficient tax administrative framework, the policies and laws might be in vain.

“The key is implementa-

tion and the political will to ensure the implementation. It requires the implementation of effective and transparent tax administration at all three tiers of government, “he said.

Abana also observed that a number of recommendations had been made over the years by different reform groups but stressed the next critical reform towards professionalising tax administration in the country have only one recurring decimal known as implementation.

He, however, noted that walking the talk rather than talking the talk requires the focused and unflinching support of all tiers of government.

“Tax professionalisation requires clear communication of the rules and guidance to the taxpayers, effective interactive with taxpayer stakeholder groups to harmonise the tax

burden and drive voluntary compliance, “he said.

On the roles of the CITN, Abana averred that the organisation has over the years during its annual Tax Conferences called for the professionalisation of tax administration among other reforms needed.

“Other reforms called for by the CITN include, amending and updating tax laws, policy and practice and increasing the transparency and accountability of tax administration for the benefit of both the nation and taxpayers, “Abana said.

Meanwhile, the President and Chairman of Council, CITN, Mrs. Olateju Somorin in her remarks hinted that the CITN Act came into being in order to bring together under one body of professionals engaged as tax administrators and practitioners.

Broad street

Wema Partners Bank of Uganda Wema Bank has disclosed that it recently, hosted some staff of Uganda’s apex bank; The Bank of Uganda (BoU), on a week-long knowledge and skills sharing session on balanced score card and performance management.

Speaking on the BoU’s decision to visit Wema Bank, Mrs Agnes Kamya Kijjambu, who led the delegation from Uganda, said the Bank of Uganda decided to partner with Wema Bank after an extensive research.

“While making our findings, Wema Bank was recommended

to us by the Balanced Scorecard Institute, Washington. The Institute assured us that Wema Bank is one of the leaders in the Nigerian banking industry in terms of best practices in strategy and performance management,” said Kijjambu.

A statement from the bank explained that Wema Bank’s Performance Management System was overhauled in 2013 with the adoption of the Balanced Scorecard methodology, in partnership with Balanced Scorecard West Africa.

This, it said was in line with the bank’s Project LEAP growth

strategy that seeks to propel it to be a leading player within the retail and digital banking landscape.

“The Balanced Scorecard approach has led to improved effectiveness and productivity of staff, which has helped the bank to continue its steady growth.

The bank closed the second quarter with an increase of 15.2 per cent in interest income to N20.16 billion and a rise of 21.6 per cent in non-interest income to N4.11 billion. Profit before tax rose by 11 per cent to N1.3 billion when compared to the first half of last year.

Ecobank Re-launches Foundation Ecobank has announced the re-launch of its foundation, the Ecobank Foundation, with a new strategy and focus.

The new strategy was presented in Canada, on the side-lines of the Global Fund’s Fifth Replenishment conference held recently.

According to a statement, health, education and financial inclusion are the three key areas of the Ecobank Foundation’s renewed vision. Working with partners across the African continent, the bank said it is set to enhance the lives of communities across Africa.

Ecobank Group Chief Executive Officer, Ade

Ayeyemi said: “Ecobank’s founding fathers established a Pan-African bank to support Africa’s transformation. We are committed to financial inclusion to extend financial services to Africa’s low-income segments, including the unbanked. We are re-launching the Ecobank Foundation to accelerate efforts towards this transformation.”

Also, Ecobank Foundation’s Chief Executive Officer, Julie Essiam said: “The African private sector is the continent’s engine of growth. The Foundation will leverage Ecobank’s considerable strengths and resources as a financial institution to empower and improve the

lives of Africans now and in the future.”

The Ecobank Foundation aims to become the go-to partner for organisations interested in the transformation of Africa.

It stated that the Foundation has renewed its partnerships with the Global Fund to Fight AIDS, Tuberculosis and Malaria for a further three years.

Programmes supported by the Global Fund partnership have put 9.2 million people on antiretroviral treatment for HIV, provided 15.1 million people with TB treatment and distributed 659 million mosquito nets to protect families from malaria.

ACCA Accredits Babcock University Following its signing of a memorandum of understanding with Babcock University, the Association of Certified Chartered Accountants (ACCA) has announced that the institution has emerged as the first ACCA accredited private university in Nigeria.

It said another major milestone was achieved when ACCA Nigeria certified Babcock University as an ACCA Accredited Institution. Prior to the official presentation the ACCA delegation led by Country Manager ACCA Nigeria; Toyin Ademola met with the Head of the Accounting Department, Professor Ishola Rufus Akinkoye to discuss possible areas of support by ACCA to the growth of the department. During

the discussions, Akinkoye said the university had obtained the buy-in of the university’s Parents Consultative Forum and added that parents were excited at the incorporation of ACCA into the accounting curriculum.

He assured the team that Babcock University was committed to working with ACCA to build the departments’ syllabus and ensuring that students are getting quality tuition to guarantee their success.

On its part, the ACCA committed to upgrading the accounting departmental library as part of its effort to support the students.

The Head of Education and Development, ACCA, Jonathan Mbewe, who was present at the

meeting, spoke about ACCA’s willingness to support the university towards achieving Gold ALP status. He expressed his gladness that the department was eager to begin providing ACCA tuition and stated that the university currently meets the criteria to start the journey to becoming an ALP. He added that ACCA aims to build capacity for the university internally and proposed engaging the lecturers of the university who were interested in becoming ACCA certified to offer them differentiated support to enable their success via the Tutor Excellence Program; which may not require academics to sit and pass ACCA exams in order to begin teaching the qualification.

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

MARCH 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

Stanbic SIBond

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

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

OPEC DAILY BASKET PRICE AS AT, MONDAY, 26 SEPT 2016 The price of OPEC basket of fourteen crudes stood at $42.16 a barrel on Monday, compared with $42.89 the previous Friday, 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

39

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

Nigeria’s top 50 stocks based on market fundamentals

27-Sep-16

26-Sep-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

01 Dangote Cement Plc

182.50

182.50

0.00%

3,109,892,601,412.50

9.56

19.09

5.74

4.38%

4.57

02 Nigerian Breweries Plc

145.03

145.00

0.02%

1,149,957,501,786.64

4.50

32.26

3.84

2.48%

7.06

03 Guaranty Trust Bank Plc

24.99

25.09

-0.40%

735,485,168,807.76

4.20

5.95

2.05

7.08%

1.62

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

15.60

15.45

0.97%

489,785,303,061.60

3.10

5.03

1.17

11.54%

0.79

06 Lafarge Africa Plc

56.00

56.00

0.00%

255,074,501,360.00

-6.71

-8.35

1.15

5.36%

1.82

07 Ecobank Transnational Incorporated

11.51

11.50

0.09%

211,203,334,484.65

0.23

50.10

0.39

5.39%

0.35

08 Forte Oil Plc.

160.15

161.00

-0.53%

208,592,348,645.45

4.22

37.95

1.41

2.15%

4.86

09 Seplat Petroleum Dev. Co. Ltd

326.00

326.00

0.00%

180,379,162,038.00 -14.43

-22.59

1.93

4.88%

0.48

10 Unilever Nigeria Plc

45.52

45.52

0.00%

172,215,645,300.00

0.46

98.44

2.83

0.11%

19.33

11 Stanbic IBTC Holdings Plc

16.75

16.95

-1.18%

167,500,000,000.00

2.04

8.22

1.42

0.60%

1.49

12 Presco Plc

41.00

45.00

-8.89%

162,789,558,845.00

0.54

76.44

2.34

3.17%

3.98

13 Access Bank Plc

5.53

5.58

-0.90%

159,971,683,119.43

2.56

2.16

0.47

9.95%

0.37

14 United Bank for Africa Plc

4.18

4.16

0.48%

151,648,420,025.96

1.66

2.52

0.48

14.35%

0.37

15 Guinness Nig Plc

97.64

93.00

4.99%

147,034,922,676.32

-1.34

-72.94

1.44

3.28%

3.53

16 FBN Holdings Plc

3.17

3.20

-0.94%

113,788,078,150.64

0.30

10.40

0.23

4.73%

0.19

17 Total Nigeria Plc

299.25

299.25

0.00%

101,601,909,722.25

31.13

9.61

0.42

4.68%

4.81

18 7-Up Bottling Comp. Plc

142.50

144.55

-1.42%

91,284,126,727.50

3.75

38.02

1.02

1.54%

3.54

19 Dangote Sugar Refinery Plc

6.40

6.40

0.00%

76,800,000,000.00

1.05

6.09

0.64

7.81%

1.29

20 International Breweries Plc

20.00

19.85

0.76%

65,884,985,600.00

0.17

114.65

2.64

1.25%

5.34

179.55

179.55

0.00%

64,744,879,292.10

17.69

10.15

0.78

4.01%

3.77

5.32

5.59

-4.83%

64,024,172,516.08

-3.46

-1.54

0.34

14.10%

0.46

23 Flour Mills Nig. Plc

22.00

21.04

4.56%

57,733,218,114.00

6.81

3.23

0.15

9.09%

0.58

24 Julius Berger Nig. Plc

39.00

39.00

0.00%

51,480,000,000.00

0.24

161.09

0.50

3.85%

2.29

1.05

1.05

0.00%

40,657,047,296.25

-0.37

-2.81

0.90

0.00%

0.53

26 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

27 Okomu Oil Palm Plc

38.00

38.00

0.00%

36,248,580,000.00

4.60

8.27

2.95

0.26%

2.33

28 Cadbury Nigeria Plc

16.69

16.53

0.97%

31,347,192,047.60

0.83

20.21

1.14

7.79%

2.52

29 Sterling Bank Plc

1.04

1.05

-0.95%

29,942,034,851.04

0.31

3.37

0.28

8.65%

0.36

30 Diamond Bank Plc

1.20

1.20

0.00%

27,792,466,761.60

0.11

10.88

0.13

0.00%

0.12

31 Wema Bank Plc

0.69

0.66

4.55%

26,616,381,595.89

0.06

10.94

0.54

0.00%

0.56

32 Fidelity Bank Plc

0.90

0.90

0.00%

26,066,327,122.80

0.39

2.31

0.18

17.78%

0.14

33 Custodian And Allied Insurance Plc

4.04

4.00

1.00%

23,762,731,347.80

0.76

5.32

0.71

3.47%

0.85

34 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

35 Cap Plc

33.00

33.00

0.00%

23,100,000,000.00

2.36

13.99

3.33

3.48%

15.82

36 Mansard Insurance Plc

2.05

2.05

0.00%

21,525,000,000.00

0.27

7.55

1.12

2.44%

1.02

37 National Salt Co. Nig. Plc

8.00

8.01

-0.12%

21,195,507,024.00

0.89

9.03

1.17

6.88%

3.07

38 FCMB Group Plc

1.07

1.03

3.88%

21,188,900,535.67

0.61

1.75

0.13

9.35%

0.12

39 PZ Cussons Nigeria Plc

20.70

20.70

0.00%

20,700,000,000.00

4.14

5.00

1.56

0.48%

0.62

40 Honeywell Flour Mill Plc

1.33

1.33

0.00%

10,547,162,885.14

-0.40

-3.29

0.22

12.03%

0.64

41 Continental Reinsurance Plc

1.01

0.98

3.06%

10,476,471,755.12

0.33

3.07

0.51

11.88%

0.54

42 Skye Bank Plc

0.65

0.66

-1.52%

9,022,195,916.50

-2.93

-0.22

0.06

46.15%

0.09

43 Unity Bank Plc

0.73

0.70

4.29%

8,533,216,697.66

0.54

1.35

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

3.74

3.40

10.00%

6,428,124,981.30

-0.05

-71.73

1.91

18.72%

0.18

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

3.24

3.24

0.00%

5,262,468,750.00

0.15

21.01

0.66

6.17%

0.85

49 AIICO Insurance Plc

0.61

0.62

-1.61%

4,227,424,732.80

0.26

2.34

0.13

8.20%

0.45

50 Fidson Healthcare Plc

1.60

1.55

3.23%

2,400,000,000.00

0.31

5.22

0.35

3.13%

0.38

04 Nestle Nigeria Plc

21 Mobil Oil Nig Plc 22 Oando Plc

25 Transnational Corporation Of Nigeria Plc

TOTAL

9,134,318,453,354.85

TOTAL MARKET CAP

9,703,643,742,610.50

% OF MARKET CAP Annotation - MA* = Simple Moving Average

94.13%

Table 1 Market Statistics Mkt Indicators

Open 26-Sep-16

NSE All Share Index NSE Market Cap (N'Trillion) Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Close 27-Sep-16

Change %

28,263.16 9.71

28,248.86 9.70

-0.05% -0.05%

117.43 9.14

117.31 9.13

-0.10% -0.10%

Table 3 Top 5 Gainers Stock

Open Close Change 26-Sep-16 27-Sep-16 %

UACN Property Development Co. Limited Guinness Nig Plc Flour Mills Nig. Plc Wema Bank Plc Unity Bank Plc

3.40 93.00 21.04 0.66 0.70

3.74 10.00% 97.64 22.00 0.69 0.73

4.99% 4.56% 4.55% 4.29%

Table 4 Top 5 Losers Stock

Open Close Change 26-Sep-16 27-Sep-16 %

Presco Plc Oando Plc AIICO Insurance Plc Skye Bank Plc 7-Up Bottling Comp. Plc

45.00 5.59 0.62 0.66 144.55

41.00 5.32 0.61 0.65 142.50

-8.89% -4.83% -1.61% -1.52% -1.42%

NSE ASI closes negative with a meagre 0.05% Market pulse on the Nigerian Stock Exchange (NSE) today – Tuesday, September 27th, 2016 was bearish as the stock market dropped slightly into the red zone. This was despite highlighted positive performances from the NSE Sub sectors: Banking, Insurance and Consumer Goods (Save Oil & Gas).

Trading activities increased in volume as 294.91 million shares worth of N1.41 billion in 3,142 deals exchanged hands today. This is an increase from the 249.77 million shares worth of N1.96 billion in 3,170 deals which exchanged on Monday. Topping in volume terms was Livestock Feeds 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 negative with a diffident 0.05% (-14.30) decrease to close at 28,248.86 from 28,263.16 the previous trading day. Market Capitalization depreciated in tandem to N9.70 trillion from N9.71 trillion of prior trading day.

Similarly, the Thisday BGL 50 Index followed suit with an decrease of 0.10% to close at 117.31 from 117.43 recorded at the end of the previous trading day, while its market capitalization stood at N9.13 trillion from N9.14 trillion of the previous trading day.

A total number of 18 stocks gained on the bourse today while 20 stocks declined, 61 leaving stocks unchanged. UACN Property Development Co. Limited emerged as the day’s toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 10.00% to close at N3.74 per share. It was followed

by Guinness Nig Plc with a gain of 4.99% to close at N97.64 per share. Others on the gainers list include: Flour Mills Nig. Plc, Wema Bank Plc and Unity Bank Plc; while on the decliners’ list, Presco Plc led with a loss of 8.89% to close at N41.00 per share. It was followed by Oando Plc with a loss of 4.83% to close at N5.32 per share. Others on the decliners list include: AIICO Insurance Plc, Skye Bank Plc and 7-Up Bottling Comp. 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

40

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

MARKET NEWS

NSE All-Share Index Falls Marginally as Profit taking Sets in

Goddy Egene and Nosa Alekhuogie

Profit taking in oil and gas stocks led to a negative close at the stock market yesterday as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell marginally by 0.05 per cent to 28,248.86. Specifically, Conoil Plc, which recorded an unprecedented rise due to an impressive 2015 full year and 2016 half year results, went

down by 7.0 per cent to be at N36.00. Similarly, Oando Plc shed 4.8 per cent to close at N5.32. Conoil Plc had appreciated by 97 per cent within seven trading days due to impressive results. The stock, which was N21.59 before the full year results were released on September 9, soared to close at N42.60 per share last week.

“I am not surprised at the way the stock is rising given the better-than-expected perfor-

T H E MAIN BOARD

DEALS

MARKET PRICE

mance despite the challenging operating environment. But I think profit taking may set in soon as some investors may want to lock part of the gains recorded by the stock,” a stockbroker, Mr. Ayo Oguntayo said. The company had posted a profit before tax of N3.448 billion for the year ended December 31, 2015, up by 125 per cent fromN1.532 billion in 2014. Conoil followed the full year performance with

N I G E R I A N QUANTITY TRADED

STO C K

VALUE TRADED ( N )

Daily Summary as of 22/02/2016 Printed 22/02/2016 14:36:10.010

Daily Summary (Bonds) No Debt Trading Activity Daily Summary (Equities) Activity Summary on Board EQTY AGRICULTURE Crop Production OKOMU OIL PALM PLC. PRESCO PLC Crop Production Totals Livestock/Animal Specialties LIVESTOCK FEEDS PLC. Livestock/Animal Specialties Totals AGRICULTURE Totals CONGLOMERATES Diversified Industries A.G. LEVENTIS NIGERIA PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. Diversified Industries Totals CONGLOMERATES Totals CONSTRUCTION/REAL ESTATE Infrastructure/Heavy Construction JULIUS BERGER NIG. PLC. Infrastructure/Heavy Construction Totals Real Estate Development UACN PROPERTY DEVELOPMENT CO. LIMITED Real Estate Development Totals CONSTRUCTION/REAL ESTATE Totals CONSUMER GOODS Beverages--Brewers/Distillers CHAMPION BREW. PLC. GUINNESS NIG PLC INTERNATIONAL BREWERIES PLC. NIGERIAN BREW. PLC. Beverages--Brewers/Distillers Totals Beverages--Non-Alcoholic 7-UP BOTTLING COMP. PLC. Beverages--Non-Alcoholic Totals Food Products DANGOTE SUGAR REFINERY PLC FLOUR MILLS NIG. PLC. HONEYWELL FLOUR MILL PLC NASCON ALLIED INDUSTRIES PLC N NIG. FLOUR MILLS PLC. TIGER BRANDED CONSUMER GOODS PLC Food Products Totals Food Products--Diversified CADBURY NIGERIA PLC. NESTLE NIGERIA PLC. Food Products--Diversified Totals Household Durables VITAFOAM NIG PLC. Household Durables Totals Personal/Household Products P Z CUSSONS NIGERIA PLC. UNILEVER NIGERIA PLC. Personal/Household Products Totals CONSUMER GOODS Totals FINANCIAL SERVICES Banking ACCESS BANK PLC. DIAMOND BANK PLC ECOBANK TRANSNATIONAL INCORPORATED FIDELITY BANK PLC GUARANTY TRUST BANK PLC. SKYE BANK PLC STERLING BANK PLC. UNITED BANK FOR AFRICA PLC UNION BANK NIG.PLC. UNITY BANK PLC WEMA BANK PLC. Banking Totals Insurance Carriers, Brokers and Services AIICO INSURANCE PLC. CONTINENTAL REINSURANCE PLC CONSOLIDATED HALLMARK INSURANCE PLC LASACO ASSURANCE PLC. AXAMANSARD INSURANCE PLC N.E.M INSURANCE CO (NIG) PLC. UNITY KAPITAL ASSURANCE PLC WAPIC INSURANCE PLC Insurance Carriers, Brokers and Services Totals Micro-Finance Banks NPF MICROFINANCE BANK PLC Micro-Finance Banks Totals Other Financial Institutions AFRICA PRUDENTIAL REGISTRARS PLC CUSTODIAN AND ALLIED PLC FCMB GROUP PLC. STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC Other Financial Institutions Totals FINANCIAL SERVICES Totals HEALTHCARE Pharmaceuticals FIDSON HEALTHCARE PLC

similarly impressive results for the half year ended June 30, 2016. Conoil Plc grew its profit before tax by 196 per cent to N1.566 billion, from N548 million in 2015, while profit after tax rose by 190 per cent to N1.04 billion.

Due to the profit taking, the Oil & Gas Index emerged the sole decliner, shedding 0.9 per cent. The NSE Insurance Index gained 0.4 per cent on the back of price appreciation in Law

6 6 12

30.00 34.00

12,629 11,640 24,269

374,530.15 421,345.20 795,875.35

19 19 31

1.25

1,078,511 1,078,511 1,102,780

1,358,964.30 1,358,964.30 2,154,839.65

5 68 13 86 86

0.77 1.13 20.47

33,500 6,740,423 65,995 6,839,918 6,839,918

25,070.00 7,635,453.96 1,344,425.15 9,004,949.11 9,004,949.11

13 13

41.50

31,970 31,970

1,409,214.78 1,409,214.78

5 5 18

5.20

28,901 28,901 60,871

154,716.48 154,716.48 1,563,931.26

6 24 7 98 135

2.85 118.85 20.00 99.00

190,900 53,000 15,200 429,541 688,641

528,079.00 6,201,924.95 293,757.00 42,728,789.84 49,752,550.79

9 9

168.50

166,476 166,476

28,285,937.95 28,285,937.95

54 38 6 12 1 29 140

5.61 19.00 1.37 6.86 6.65 1.27

2,120,306 314,421 40,000 119,863 433 3,285,739,119 3,288,334,142

11,610,520.13 5,953,792.96 55,716.00 842,442.48 2,736.56 4,074,348,894.07 4,092,814,102.20

11 54 65

17.86 700.00

18,825 98,360 117,185

329,518.50 68,567,962.00 68,897,480.50

11 11

4.46

99,050 99,050

420,455.00 420,455.00

13 21 34 394

21.90 28.00

36,887 133,117 170,004 3,289,575,498

820,034.75 3,737,067.92 4,557,102.67 4,244,727,629.11

82 51 21 25 200 41 16 147 11 15 67 676

4.10 1.49 15.60 1.21 16.70 1.07 1.76 2.95 5.30 0.63 0.98

3,962,506 2,163,396 278,470 790,900 4,847,312 1,969,858 1,204,932 8,586,418 39,752 501,617 5,920,564 30,265,725

16,210,255.82 3,314,106.88 4,136,459.40 958,864.34 80,963,793.44 2,115,552.11 2,087,767.85 25,302,954.71 205,645.40 316,018.71 5,813,502.17 141,424,920.83

14 8 2 3 7 10 1 1 46

0.80 0.90 0.50 0.50 2.06 0.76 0.50 0.50

200,107 276,500 5,004,000 1,000,000 351,540 327,285 37,708,135 10 44,867,577

160,838.67 251,350.00 2,502,000.00 500,000.00 720,728.80 245,325.31 18,854,067.50 5.00 23,234,315.28

1 1

1.08

4,760 4,760

4,950.40 4,950.40

31 7 105 7 20 170 893

2.46 4.00 0.85 14.15 1.31

1,149,464 27,041 31,257,120 38,035 708,255 33,179,915 108,317,977

2,830,722.84 104,002.06 26,613,309.20 537,985.34 931,556.31 31,017,575.75 195,681,762.26

27

2.69

614,065

1,572,223.05

Union & Rock Insurance Plc (+7.0 per cent) and Continental Insurance Plc (+3.1 per cent).

The NSE Consumer Goods index followed suit, up 0.3 per cent due to bargain-hunting in Guinness (+5.0 per cent) and Flour Mills of Nigeria Plc (+4.6per cent). Also, the NSE Banking Index rebounded from a 3-day losing streak to gain 0.1 per cent on account of Wema Bank Plc (+4.5 per cent) and Zenith Bank Plc (+0.9 per cent).

Meanwhile, the total volume of stocks traded was 294.90 million shares valued at N1.413 billion 3,142 deals yesterday.

The most actively traded sectors were: Financial Services (139.71 million shares), Agriculture (105.36 million shares ) and Consumer Goods (25.87 million shares) while the three most actively traded stocks were: Livestock Feeds (104.59 million), FCMB (43.92) million and United Bank for Africa Plc.

E XC H A N G E

MAIN BOARD GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC Pharmaceuticals Totals HEALTHCARE Totals ICT IT Services TRIPPLE GEE AND COMPANY PLC. IT Services Totals ICT Totals INDUSTRIAL GOODS Building Materials ASHAKA CEM PLC BERGER PAINTS PLC CAP PLC CEMENT CO. OF NORTH.NIG. PLC PORTLAND PAINTS & PRODUCTS NIGERIA PLC LAFARGE AFRICA PLC. Building Materials Totals Electronic and Electrical Products CUTIX PLC. Electronic and Electrical Products Totals Packaging/Containers BETA GLASS CO PLC. Packaging/Containers Totals INDUSTRIAL GOODS Totals OIL AND GAS Energy Equipment and Services JAPAUL OIL & MARITIME SERVICES PLC Energy Equipment and Services Totals Integrated Oil and Gas Services OANDO PLC Integrated Oil and Gas Services Totals Petroleum and Petroleum Products Distributors CONOIL PLC ETERNA PLC. FORTE OIL PLC. MOBIL OIL NIG PLC. TOTAL NIGERIA PLC. Petroleum and Petroleum Products Distributors Totals Exploration and Production SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD Exploration and Production Totals OIL AND GAS Totals SERVICES Automobile/Auto Part Retailers R T BRISCOE PLC. Automobile/Auto Part Retailers Totals Courier/Freight/Delivery RED STAR EXPRESS PLC Courier/Freight/Delivery Totals Printing/Publishing LEARN AFRICA PLC Printing/Publishing Totals Transport-Related Services AIRLINE SERVICES AND LOGISTICS PLC NIGERIAN AVIATION HANDLING COMPANY PLC Transport-Related Services Totals Support and Logistics CAVERTON OFFSHORE SUPPORT GRP PLC Support and Logistics Totals SERVICES Totals EQTY Board Totals Daily Summary (Equities) Activity Summary on Board ASeM CONSUMER GOODS Food Products MCNICHOLS PLC Food Products Totals CONSUMER GOODS Totals ASeM Board Totals Daily Summary (Equities) Activity Summary on Board PREMIUM FINANCIAL SERVICES Banking ZENITH INTERNATIONAL BANK PLC Banking Totals Other Financial Institutions FBN HOLDINGS PLC Other Financial Institutions Totals FINANCIAL SERVICES Totals INDUSTRIAL GOODS Building Materials DANGOTE CEMENT PLC Building Materials Totals INDUSTRIAL GOODS Totals PREMIUM Board Totals Equity Activity Totals

DEALS

MARKET PRICE

QUANTITY TRADED

VALUE TRADED ( N)

32 4 6 69 69

25.33 0.94 0.69

551,998 16,020 597,000 1,779,083 1,779,083

13,903,164.18 15,299.40 412,110.00 15,902,796.63 15,902,796.63

1 1 1

1.69

500 500 500

805.00 805.00 805.00

16 9 4 6 10 31 76

24.00 9.30 35.78 8.62 3.36 80.50

110,727 40,229 26,700 142,300 299,900 14,373,223 14,993,079

2,707,053.97 362,501.29 992,680.00 1,227,076.00 966,480.00 1,157,057,077.16 1,163,312,868.42

6 6

1.51

134,500 134,500

204,240.00 204,240.00

5 5 87

50.00

24,529 24,529 15,152,108

1,165,135.50 1,165,135.50 1,164,682,243.92

2 2

0.50

24,262 24,262

12,131.00 12,131.00

90 90

3.47

3,827,573 3,827,573

13,288,632.05 13,288,632.05

21 7 8 21 7 64

18.34 1.84 342.00 150.00 145.00

81,125 100,300 20,300 16,295 13,699 231,719

1,505,034.50 182,832.00 6,595,470.00 2,396,080.60 1,959,692.96 12,639,110.06

33 33 189

318.00

389,934 389,934 4,473,488

124,037,602.56 124,037,602.56 149,977,475.67

1 1

0.50

941 941

470.50 470.50

5 5

3.80

32,870 32,870

127,756.40 127,756.40

13 13

0.89

624,500 624,500

538,430.00 538,430.00

1 22 23

2.29 4.00

4,588 251,094 255,682

10,001.84 1,001,583.80 1,011,585.64

1 1 43 1,811

1.68

10,000 10,000 923,993 3,428,226,216

16,000.00 16,000.00 1,694,242.54 5,785,390,675.15

2 2 2 2

1.21

270,464 270,464 270,464 270,464

327,261.44 327,261.44 327,261.44 327,261.44

306 306

11.45

13,929,679 13,929,679

159,605,439.23 159,605,439.23

278 278 584

3.74

10,438,552 10,438,552 24,368,231

39,515,087.18 39,515,087.18 199,120,526.41

35 35 35 619 2,432

139.83

38,770 38,770 38,770 24,407,001 3,452,903,681

5,304,666.00 5,304,666.00 5,304,666.00 204,425,192.41 5,990,143,129.00

2 2 2 2 2 10 10 10

2,330.00 2.33 6.02 11.09 18.07

3,000 20 20 20 15 3,075 3,075 3,075

6,986,000.00 46.70 120.20 221.80 270.65 6,986,659.35 6,986,659.35 6,986,659.35

Daily Summary (ETP) Exchange Traded Fund Name NEWGOLD EXCHANGE TRADED FUND (ETF) VETIVA BANKING ETF VETIVA CONSUMER GOODS ETF VETIVA GRIFFIN 30 ETF VETIVA INDUSTRIAL ETF Exchange Traded Fund Totals ETF Board Totals ETP Activity Totals

41

T H I S D AY • WEDNESDAY, SEPTEMBER 28, 2016

MARKET NEWS

Taking Advantage of Managed Funds in Nigeria (3) Goddy Egene Mutual funds also offer the advantage of liquidity and flexibility. One thing is for investors to buy a stock another thing is to sell that stock whenever they want to. However, mutual funds offer the advantage of the liquidity or flexibility investors always crave for.

Selling the mutual fund investment is easy and they can also be bought back any time. The prices

to buy and sell are quoted in the open market but dealing is exclusively with the fund managers.

Another advantage of mutual funds is comparatively lower transactions cost. Some statutory charges are fixed irrespective of the volume of transactions and mutual funds have an advantage of dealing in volume. And with their large pool of investment capital, mutual funds are in a position to negotiate for

A Mutual fund (Unit Trust) is an investment vehicle managed by a SEC (Securities and Exchange Commission) registered Fund Manager.

Investors with similar objectives buy units of the Fund so that the Fund Manager can buy securities that willl generate their desired return.

An ETF (Exchange Traded Fund) is a type of fund which owns the assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. Investors can buy these ‘shares’ on the

lower transaction costs.

One of the highly experienced stockbrokers and Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike once said mutual funds investing is an option that investors who are looking forward to reducing their risks should consider.

He explained that retail investors are more likely to benefit from mutual funds because it gives investors the room to mitigate their losses

floor of the Nigerian Stock Exchange.

A REIT (Real Estate Investment Trust) is an investment vehicle that allows both small and large investors to part-own real estate ventures (eg.

Offices, Houses, Hospitals) in proportion to their investments. The assets are divided into shares that are traded on the Nigerian Stock Exchange.

GUIDE TO DATA: Date: All fund prices are quoted in Naira as at 26-Sep-2016, unless otherwise stated.

to some extent.

Madubuike, who is also the Managing Director of Compass Investments and Securities Limited, said: “Of course, it is not as if the investor would not encounter any losses, the good thing is that the losses would be reduced to a large extent, because his risks are diversified. When you invest in mutual funds, you invest in a pool of investment, which means it is not in any specific stocks. The fact is that these funds have to be spread

outside the capital market.”

Speaking in the same vein, another stockbroker and MD of Highcap Securities Limited, Mr. David Adonri, said mutual funds are most ideal for retail investors who are unable to select or manage their financial assets, and hence, require expertise provided by funds.

According to him, the type of funds ideal for various investors depends on their risk appetite.

“Mutual funds are in

varieties depending on their investment goals, which then determine the underlying assets, if equities are down, risk-averse investors can actually take defensive positions in fixed income securities and mutual funds with high composition of fixed income securities. However, risk-tolerant investors, who can interpret changing scenarios in the equities market, can take advantage of falling prices to strike good fortunes,” Adonri said.

Offer price: The price at which units of a trust or ETF are bought by investors.

Bid Price: The price at which Investors redeem (sell) units of a trust or ETF. Yield/Total Return: Denotes the total return an investor would have earned on his investment. Money Market Funds report Yield while others report Year- to-date Total Return.

NAV: Is value per share of the real estate assets held by a REIT on a specific date.

DAILY PRICE LIST FOR MUTUAL FUNDS, REITS and ETFS MUTUAL FUNDS / UNIT TRUSTS AFRINVEST ASSET MANAGEMENT LTD Web: www.afrinvest.com; Tel: +234 1 270 1680 Fund Name Bid Price Afrinvest Equity Fund 125.71 Nigeria International Debt Fund 215.61 ALTERNATIVE CAPITAL PARTNERS LTD Web: www.acapng.com, Tel: +234 1 291 2406, +234 1 291 2868 Fund Name Bid Price ACAP Canary Growth Fund 0.68 AIICO CAPITAL LTD Web: www.aiicocapital.com, Tel: +234-1-279 2930 Ext-2205 Fund Name Bid Price AIICO Money Market Fund ARM INVESTMENT MANAGERS LTD Web: www.arm.com.ng; Tel: 0700 CALLARM (0700 225 5276) Fund Name ARM Aggressive Growth Fund ARM Discovery Fund ARM Ethical Fund ARM Money Market Fund AXA MANSARD INVESTMENTS LTD Web: www.axamansard.com; Tel: +2341-4488482 Fund Name AXA Mansard Equity Market Fund AXA Mansard Money Market Fund CHAPELHILL DENHAM LTD Web: www.chapelhilldenham.com, Tel: +234 461 0691 Fund Name Nigeria Global Investment Fund Paramount Equity Fund Women's Investment Fund FBN CAPITAL ASSET MANAGEMENT LTD Web: www.fbnquest.com; Tel: +234-81 0082 0082 Fund Name FBN Fixed Income Fund FBN Heritage Fund FBN Money Market Fund FBN Nigeria Eurobond (USD) Fund - Institutional FBN Nigeria Eurobond (USD) Fund - Retail FBN Nigeria Smart Beta Equity Fund FIRST CITY ASSET MANAGEMENT LTD Web: www.fcamltd.com; Tel: +234 1 462 2596 Fund Name Legacy Equity Fund Legacy Short Maturity (NGN) Fund FSDH ASSET MANAGEMENT LTD Web: www.fsdhaml.com; Tel: 01-270 4884-5; 01-280 9740-1 Fund Name Coral Growth Fund

100.00

aaml@afrinvest.com Offer Price Yield / T-Rtn 126.24 12.47% 216.32 7.69% info@acapng.com Offer Price Yield / T-Rtn 0.68 9.81% ammf@aiicocapital.com Offer Price

Yield / T-Rtn

100.00

13.92%

enquiries@arminvestmentcenter.com Bid Price 12.96 295.66 22.99

Offer Price 13.36 304.58 23.69

Yield / T-Rtn 6.39% 5.78% 4.29%

1.00

1.00

11.61%

investmentcare@axamansard.com Bid Price 101.30

Offer Price 101.93

Yield / T-Rtn 1.61%

1.00 1.00 11.13% investmentmanagement@chapelhilldenham.com Bid Price 2.08 9.41

Offer Price 2.13 9.65

Yield / T-Rtn 2.18% -4.51%

82.34

84.45

1.52%

invest@fbnquest.com Bid Price 1,102.85 115.00 100.00 $104.93 $104.87 112.73

Offer Price 1,103.93 115.52 100.00 $105.70 $105.64

Yield / T-Rtn 1.92% 5.75% 10.20% 5.32% 5.25%

114.24

13.49%

fcamhelpdesk@fcmb.com Bid Price 0.95 2.49

Offer Price Yield / T-Rtn 0.97 5.49% 2.49 7.15% coralfunds@fsdhgroup.com

Bid Price 2,242.55

Offer Price 2,270.93

Coral Income Fund 2,026.26 INVESTMENT ONE FUNDS MANAGEMENT LTD Web: www.investment-one.com; Tel: +234 812 992 1045,+234 1 448 8888 Fund Name Bid Price

Yield / T-Rtn 3.13%

2,026.26 7.13% enquiries@investment-one.com Offer Price

Yield / T-Rtn

Vantage Guaranteed Income Fund

1.00

1.00

11.14%

Vantage Balanced Fund

1.64

1.66

0.55%

LOTUS CAPITAL LTD fincon@lotuscapitallimited.com Web: www.lotuscapitallimited.com; Tel: +234 1-291 4626 / +234 1-291 4624 Fund Name Bid Price Offer Price Yield / T-Rtn Lotus Halal Investment Fund 1.00 1.02 12.38% Lotus Halal Fixed Income Fund 979.70 979.70 -2.03% MERISTEM WEALTH MANAGEMENT LTD info@meristemwealth.com Web: www.meristemwealth.com ; Tel: +234 1-4488260 Fund Name Bid Price Offer Price Yield / T-Rtn Meristem Equity Market Fund 10.04 10.13 2.66% Meristem Money Market Fund 10.00 10.00 12.69% PAC ASSET MANAGEMENT LTD info@pacassetmanagement.com Web: www.pacassetmanagement.com/mutualfunds; Tel: +234 1 271 8632 Fund Name Bid Price Offer Price Yield / T-Rtn PACAM Balanced Fund 1.02 1.04 -2.83% SCM CAPITAL LIMITED info@scmcapitalng.com Web: www.scmcapitalng.com; Tel: +234 1-280 2226,+234 1- 280 2227 Fund Name Bid Price Offer Price Yield / T-Rtn Sterling Capital Frontier Fund 107.56 108.57 5.71% SFS CAPITAL NIGERIA LTD investments@sfsnigeria.com Web: www.sfsnigeria.com, Tel: +234 (01) 2801400 Fund Name Bid Price Offer Price Yield / T-Rtn SFS Fixed Income Fund 1.21 1.21 7.31% STANBIC IBTC ASSET MANAGEMENT LTD assetmanagement@stanbicibtc.com Web: www.stanbicibtcassetmanagement.com; Tel: +234 1 280 1266; 0700 MUTUALFUNDS Fund Name Bid Price Offer Price Yield / T-Rtn Stanbic IBTC Balanced Fund 1,816.78 1,828.20 8.21% Stanbic IBTC Bond Fund 150.42 150.42 2.27% Stanbic IBTC Ethical Fund 0.82 0.83 10.00% Stanbic IBTC Guaranteed Investment Fund 178.39 178.39 5.13% Stanbic IBTC Iman Fund 139.65 141.36 3.19% Stanbic IBTC Money Market Fund 100.00 100.00 14.14% Stanbic IBTC Nigerian Equity Fund 7,891.85 7,996.98 9.80% UNITED CAPITAL ASSET MANAGEMENT LTD unitedcapitalplcgroup.com Web: www.unitedcapitalplcgroup.com; Tel: +234 803 306 2887 Fund Name Bid Price Offer Price Yield / T-Rtn United Capital Balanced Fund 1.17 1.18 9.95% United Capital Bond Fund 1.26 1.26 17.04% United Capital Equity Fund 0.77 0.79 3.48% United Capital Money Market Fund 1.00 1.00 13.00% ZENITH ASSETS MANAGEMENT LTD info@zenith-funds.com Web: www.zenith-funds.com; Tel: +234 1-2784219 Fund Name Bid Price Offer Price Yield / T-Rtn Zenith Equity Fund 9.97 10.15 4.40% Zenith Ethical Fund 11.53 11.64 0.56% Zenith Income Fund 16.40 16.40 2.26%

REITS

NAV Per Share

Yield / T-Rtn

11.43 121.92

2.69% 5.24%

Bid Price

Offer Price

Yield / T-Rtn

9.17 80.37

9.27 81.89

-4.26% -3.43%

Fund Name FSDH UPDC Real Estate Investment Fund SFS Skye Shelter Fund

EXCHANGE TRADED FUNDS

Fund Name Lotus Halal Equity Exchange Traded Fund Stanbic IBTC ETF 30 Fund

VETIVA FUND MANAGERS LTD Web: www.vetiva.com; Tel: +234 1 453 0697

Fund Name Vetiva Banking Exchange Traded Fund Vetiva Consumer Goods Exchange Traded Fund Vetiva Griffin 30 Exchange Traded Fund Vetiva Industrial Goods Exchange Traded Fund Vetiva S&P Nigeria Sovereign Bond Exchange Traded Fund

funds@vetiva.com Bid Price

Offer Price

Yield / T-Rtn

2.80 7.36 12.80 18.42 -

2.84 7.44 12.94 18.62 -

21.03% 15.09% 2.14% -4.09% -

The value of investments and the income from them may fall as well as rise. Past performance is a guide and not an indication of future returns. Fund prices published in this edition are also available on each fund manager’s website and FMAN’s website at www.fman.com.ng. Fund prices are supplied by the operator of the relevant fund and are published for information purposes only.

42

WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

INTERNATIONAL ICC to Rule on Damage of Timbuktu Shrine

email:foreigndesk@thisdaylive.com

International war crimes judges are to rule in the case of a former Islamist rebel who pleaded guilty to wrecking holy shrines during Mali’s 2012 conflict and apologized for the damage he cause in Timbuktu. It is the first case at the International Criminal Court focusing on cultural destruction as a war crime.

During a two-day trial in August Ahmad al-Faqi al-Mahdi asked for forgiveness and said he had been swept up in an “evil wave” by al Qaeda and the Ansar Dine Islamist groups that briefly seized control of the ancient sites.

As part of a plea agreement the prosecution and the defense requested a sentence of between 9 and 11 years in prison. However, the judges are free to ignore the recommendation and hand down a sentence of up to 30 years.

Mahdi has admitted to charges

of involvement in the destruction of historic mausoleums in the North African city. Prosecutors say he led a group of religious police using pick-axes and crowbars to destroy nine mausoleums and the door of a mosque, and at times took part himself.

Most of the sites dated from Mali’s 14th-century golden age as a trading hub and center of Sufi Islam, a branch of the religion seen as idolatrous by some hardline Muslim groups. During the trial, prosecutor Fatou Bensouda compared the attacks to Islamic State’s smashing of monuments in the Syrian city of Palmyra and the 2001 destruction of the Afghan Bamiyan Buddha statues by the Taliban.

If convicted, Mahdi, who estimates his age at 45, would be the first defendant to be found guilty

of Islamist-related charges by the global court. Since the ICC began operating in 2002, prosecutors have

indicted 39 individuals, including Ugandan rebel leader Joseph Kony, Sudanese President Omar al-Bashir,

Kenyan President Uhuru Kenyatta, late Libyan leader Muammar Gaddafi and Ivorian President

Laurent Gbagbo. The court has handed down three convictions and acquitted one defendant.

Charlotte Protesters Demand Mayor’s Resignation Dozens of protesters took their fight for racial equality in policing to the heart of Charlotte’s power structure on Monday, demanding the resignations of the mayor, police chief, and lawmakers in the wake of the police slaying of a black man.

Residents and activists, many of whom have participated in street demonstrations every day since the death of Keith Scott on Tuesday, spoke at a packed city council meeting of frustrations with racial discrimination in the North Carolina city of about 792,800 residents.

Many speakers said city officials were responsible for ensuring police officers treat everyone fairly, and called on Mayor Jennifer Roberts, CharlotteMecklenburg Police Chief Kerr Putney, and members of the city council to resign.

“If you can’t do your job, let’s find someone who can,” said Darcel Chandler, an attorney. “We can’t choose who we want the laws to apply to.” The death of Scott, a 43-year-old father of seven, in Charlotte, and Terence Crutcher in Oklahoma, were

the latest cases to raise questions about racial bias in U.S. law enforcement and stoke a national debate on policing ahead of the U.S. presidential election in November.

Police slayings in cities such as New York, Baltimore, Chicago and Ferguson, Missouri, have triggered more than two years of largely peaceful protests punctuated by days of rioting, and given rise to the anti-racism Black Lives Matter movement.

In Charlotte, Mayor Roberts repeatedly called for decorum during three hours of public comments on Monday evening, as speakers went over their sanctioned time-limits, chants of justice erupted from the crowd, and, in one case, a woman called the mayor part of Satan’s family.

“We want to hear what you have to say,” Mayor Roberts told the crowd. “We care very much about hearing you.” Several speakers said delaying the release of footage collected from police cameras at the scene of the incident sowed more mistrust of law enforcement among the black community.

PRESIDENTIAL HANDSHAKE

DonaldTrumpshakeshandswithHillaryClintonattheconclusionoftheirdebate..Mondaynighta

Egypt to Host 3rd Session of the 4th Term of the African Parliament Alex Enumah in Abuja The 3rd session of the 4th legislative term of the African Parliament will be held at Sharm El-Sheik from 9th to 19th of October 2016, a statement from the Embassy of The Arab Republic of Egypt has disclosed.

The statement signed by Ahmed Maher of the Press and Public Unit of the Embassy in Abuja, stated that the country hosted the first conference of an African summit in 1964 and since then has continued to play significant roles in the successes of the African Union.

“Recently this year Egypt hosted

two big African events. First was a two-day African Forum which was held in January. More than 1,200 delegates, including some head of states and dozens of African ministers and senior trade and investment officials were in attendance. “The second was in March where Ministers and leaders from Africa convened in Sharm El-Sheikh for a collaborative effort against terrorism”, the statement read in part Maher also disclosed that Egypt will be hosting Speakers of key world parliaments on the 9th , as parts of activities lined up for the

celebration of the 150th Anniversary of the inception of parliamentary life in Egypt. In attendance would be Speakers from the Russian, American, European, Chinese and Japanese parliaments as well as Speakers of the Arab parliaments and Heads of the international, Arab and African parliamentary unions.

The Egyptian President, Abdel-Fattah El-Sisi, Prime Minister Sherif Ismail and Egypt’s 596 MPs are also expected to grace the occasion while both President El-Sisi and Speaker Ali Abdel-Aal will deliver speeches

at the event which will then be followed by a short documentary film on Egypt’s 150-year-old parliamentary life.

According to Maher, the history of Egypt’s parliament, which he said is the first in the Arab, African and Middle East regions, dates back to 22nd October 1866 when the 75-MP Council of Consultative Deputies (Maglis Shura Al-Nuwab) was formed.

He added that the Council, which was inaugurated during the era of Khedive Ismail (1863-1879), has undergone various transformations over the years.

US Sanctions Chinese Firm Linked to North Korea’s 32 Injured as another Typhoon Nuclear Program Hits Taiwan

Strong wind and rain lashed Taiwan yesterday as the third typhoon to hit the island this month made landfall, injuring more than 30 people, ripping signs off buildings and knocking down trees.

Most schools and offices were shut and the north-south bullet train suspended services as Typhoon Megi, packing winds of well over 160 kph (100 mph), roared in from the Pacific and hit eastern Taiwan.

At least 32 people were injured and more than 5,300 evacuated, the government’s Central Emergency Operation Center said, while more than 950,000 households had lost power, according to the main power supplier, Taiwan Power Co. Taiwan’s financial markets were closed because of the storm. Television footage showed people, who ignored warnings to stay indoors, scurrying along

city streets clutching umbrellas to try to fend off the rain, which grew heavier as the storm approached.

Bus and subway services were mostly suspended in the capital, Taipei, while hundreds of international flights were canceled.

Jen Li-yu, an official with the Central Weather Bureau, said the storm would lose strength after it made landfall though flooding and strong winds would continue.

The typhoon is expected to move across Taiwan and head into the Taiwan Strait and on towards China on Wednesday. This month, super Typhoon Meranti killed 28 people in China and Taiwan and cut power to more than a million homes.

Typhoons are common in the region at this time of year, picking up strength as they cross warm Pacific waters and bringing fierce wind and rain when they reach land.

The United States said on Monday it had sanctioned a Chinese industrial machinery and equipment wholesaler, a new step in tightening the financial noose around North Korea’s nuclear program after its fifth nuclear test this month.

The U.S. Treasury said it was sanctioning Dandong Hongxiang Industrial Development Co (DHID) and four of its executives, including the firm’s founder, Ma Xiaohong, under U.S. regulations targeting proliferators of weapons of mass destruction.

It accused the firm of acting on behalf of North Korea’s Korea Kwangson Banking Corp (KKBC), which has been under U.S. and U.N. sanctions for supporting proliferation of such weapons.

The U.S. Department of Justice said it had filed criminal charges against the Chinese firm and the executives for using front companies to evade sanctions on North Korea’s nuclear weapons and ballistic missile programs.

The charges accuse the firm and the individuals of conspir-

ing to violate sanctions rules and engaging in international money laundering. The Justice Department said bank accounts associated with the firm and front companies received hundreds of millions of dollars that transited through the United States. “Today’s action exposes a key illicit network supporting North Korea’s weapons proliferation,” Adam Szubin, the Treasury Department’s acting under secretary for terrorism and financial intelligence, said in a statement.

“DHID and its employees sought to evade U.S. and U.N. sanctions, facilitating access to the U.S. financial system by a designated entity.” The announcement came after the White House said last week that President Barack Obama and Chinese Premier Li Keqiang agreed in New York on Sept. 20 to step up cooperation in the U.N. Security Council and in law-enforcement channels after North Korea’s latest and largest nuclear test on Sept. 9. China’s Foreign Ministry said last week Hongxiang was under investigation following the provisions of U.N.

resolution 2270, which imposed tighter sanctions on North Korea in March.

Chinese embassy spokeswoman Fang Hong said Hongxiang Industrial Development Co was being investigated for “illegal behavior” and “economic crimes.”

She said China had a “clear and consistent” position of opposing North Korea’s development of nuclear weapons. “We have been earnestly and faithfully implementing Security Council resolutions related to (North Korea) in their entirety and fulfilling our international obligations in nonproliferation export controls,” she said.

On Monday, South Korea’s JoongAng Daily newspaper reported that China was investigating a top official of the KKBC at its branch in the Chinese border city of Dandong.

South Korea said on Tuesday it “highly valued” Washington’s action against the Chinese firm.

“By exposing the risks of trade with North Korea, we expect this measure to raise the alarm

for individuals and entities in third countries as well as China that are trading with North Korea,” South Korea’s foreign ministry said in a statement. While China is North Korea’s sole major ally, it disapproves of its nuclear and missile programs and was angered by its latest nuclear test. Beijing has said it will work within the U.N. to formulate a necessary response, but questions remain as to whether it is willing to agree tough enough steps to force North Korea to abandon nuclear weapons.

Discussions are under way on a possible new U.N. sanctions resolution and the senior U.S. diplomat for Asia said on Friday he was confident an agreement would be reached before long, imposing further sanctions and tightening existing ones.

Daniel Russel, the U.S. assistant secretary of state for East Asia, said the aims would include preventing North Korea’s abuse of international infrastructure, including banking and shipping, to further its nuclear program.

WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

43

NEWSEXTRA

Buhari Welcomes Indian Business Delegation’s Plans to Invest $5bn in Nigeria Nigeria, India sign MoU on diplomatic issues, prisoners swap, visa Tobi Soniyi in Abuja President Muhammadu Buhari yesterday in Abuja welcomed plans by an Indian Business delegation to Nigeria to invest $5 billion in the Nigerian economy.

A statement by his Senior Special Assistant to the President on Media and Publicity, Garba Shehu, said Buhari spoke while receiving the Indian Vice President, Mohammad Hamid Ansari, at the State House.

The statement said the business

delegation that accompanied the Indian Vice President promised to invest $5 billion in addition to $10 billion already invested in the Nigerian economy.

Buhari said Nigeria would emulate the Asian country’s agricultural model and capacity to feed its 1 billion population, and also export to other countries, describing the country as “sustainable and prosperous.’’

He said Nigeria would continue to expand its relationship with India in the areas of health, education,

Lamido: APC Has Embarrassed Nigeria by Failure in Leadership Calls on governors to emulate Wike Ernest Chinwo inPort Harcourt Former Jigawa State Governor, Dr. Sule Lamido, has said the All Progressives Congress (APC) has embarrassed Nigerian both locally and internationally by failing to provide adequate leadership since taking over power at the federal level.

He also called on governors, especially those elected on the platform of the APC, to emulate Rivers State Governor, Nyesom Wike, in leadership and project execution and stop using economic recession as excuse for their failures.

This came as the Rivers State Governor, Nyesom Wike, said leaders should stop using recession as an excuse for failure to deliver on their campaign promises.

Both leaders spoke yesterday in Port Harcourt during the inauguration of the reconstructed Ozuoba-Rumuosi Road in Obio/ Akpor Local Government Area.

Lamido specifically advised the leadership of the APC at all levels to learn the art and science of leadership and projects delivery from Wike.

Lamido, who unveiled the road, said the leadership of the

APC is learning on the job after their electoral victory, pointing out that they have embarrassed Nigeria internationally through their failure to work for Nigerians.

He said: “Only PDP governors are working. We in PDP care and we are concerned. If we are given a responsibility, we discharge it creditably. Governor Wike has done very well. I extend the gratitude of the entire PDP family to Governor Wike for his performance.”

He said APC cannot work for Nigerians because the party lacks the capacity for pro-people governance; they only grabbed power for the sake of it and not for service.

The former governor called on Nigerians to build understanding amongst themselves for the promotion of unity, peace and prosperity.

In his remarks, Rivers State Governor, Nyesom Wike, said: “Whether there is economic recession or not, I will always fulfil my campaign promises to the people of the state.

“The people have played their part by voting us. Therefore, we have a responsibility to work for our people. They don’t deserve excuses.”

Abdulmumin Accuses House of Contempt of Court Damilola Oyedele in Abuja The former Chairman of the House Committee on Appropriation, Hon. Jibrin Abdulmumin, has described the investigation of the Committee on Ethics and Privileges as a contempt of court.

The committee last week was mandated to investigate allegations of breaches of privileges of members of the House, and sundry acts of misconduct, against the Kano lawmaker.

The recommended punishment is a minimum of six months suspension. It is expected to submit its report today. Abdulmumin however shunned the committee’s hearing, saying he cannot be guaranteed fair trial.

Briefing journalists yesterday after plenary where he made a brief appearance, Abdulmumin said his lawyers had written to the Speaker, urging the suspension

of the hearing.

“The most important thing is that this matter is already before a court of law. The speaker also entered appearance on the case, and the matter now becomes subjudice. If any action is taken, it will amount to contempt of court,” he said.

“The privileges of lawmakers do not confer immunity on them to be exposed on issues of fraud and corruption. If a member of the House decides to expose corruption, it can’t amount to a breach of privilege,” Abdulmumin added.

Abdulmumin, following his removal, had accused the Speaker of the House, Yakubu Dogara, Deputy Speaker, Yussuff Sulaimon Lasun, Chief Whip, Alhassan Ado Doguwa, Minority Whip, Leo Ogor, and nine chairmen of standing committees of making senseless insertions into the 2016 budget and corrupt practices.

agriculture, technology and trade.

Buhari said Nigeria had over the years benefited from the cooperation of the Asian country in trade and investment, agriculture, technology and the fight against terrorism.

The president noted that Nigeria would continue to support the reform of the United Nations Security Council, pointing out that it was unfair on the rest of the world for five countries to exercise power of ‘‘yes or no’’ in the UN. In his remarks, the Indian Vice President said his country, which is the leading buyer of Nigeria’s crude oil, would increase its purchase of the commodity in addition to natural gas.

According to him, the relationship between Nigeria and India is near perfect as both countries ‘‘have nothing to quarrel about.’’

Meanwhile, Nigeria and India have signed a Memorandum of Understanding (MoU) on Product Standardisation and a Letter of Intent to conclude agreements on a number of diplomatic issues including customs cooperation,

prisoner transfer, renewable energy and visa issues.

A statement issued by the Senior Special Assistant to the Vice President on Media and Publicity, Mr. Laolu Akande, said Nigeria’s Minister of State for Industry, Trade and Investment, Mrs. Aishat Abubakar, signed the MoU for Nigeria while India’s Minister of State for Finance, Mr. Arjun Ram Meghwal signed for his country.

For the Letter of Intent, the Indian Ambassador Mr. B.N. Reddy signed for his country, while the Permanent Secretary, Foreign Affairs Ministry, Mr. Sola Enikanolaye signed for Nigeria.

Several ministers from Nigeria attended the bilateral meeting alongside the Indian delegation that included members of parliament.

Also, yesterday, Nigeria and India agreed to re activate the Nigeria-India Joint Commission earlier set up to foster deepened relationship and expanded economic interaction between the two countries.

The decision to reactivate the joint commission was the highlight of the

bilateral meeting held yesterday at the Presidential Villa between the visiting Indian Vice President, M. Hamid Ansari and Nigeria’s Vice President, Professor Yemi Osinbajo.

The Nigeria-India Joint Commission was set up in 1979.

It was revived during former President Olusegun Obasanjo’s administration. It met last about five years ago.

The Indian Vice President said the “Joint Commission should be reactivated within the shortest possible time,” a call that was promptly consented to by Osinbajo who in reply said, “we agree that the commission which met last five years ago be reactivated.”

Osinbajo said the commission would provide a veritable way forward to work out the different areas of collaboration discussed at the close-door bilateral talks.

Issued discussed ranged from economic relations, peace and security, consular matters and regional and international issues.

Osinbajo stated that both countries should also focus on the outcome of the 3rd India-Africa

Summit held last year.

He said that Nigeria would take an active part in the elaboration of the programme of action.

He also called for the setting up of a joint implementation committee to pursue the commitments of that summit.

Observing that India has recorded “remarkable advancement,” in science and technology, including in space research, Osinbajo added that Nigeria was committed to playing a more active role in the evolution of the International Solar Alliance launched by the Indian government last year with a view to benefiting from its operations for Nigeria’s own quest for alternative sources of energy.

In his own remarks, the Indian Vice President, who is also the head of the country’s upper legislative chamber-Rajya Sabha- (also known as the Council of States) said he was delighted to be in the “beautiful city of Abuja and congratulated the country on last year’s free and fair elections.

HOW TO REFORM BUDGETARY PROCESS

L-R: Sokoto State Governor, Aminu Waziri Tambuwal; Deputy Senate President, Ike Ekwerenmadu; Publisher, Abuja Inquirer, Dan Akpovwa; and Speaker, House of Representatives, Yakubu Dogara, at a summit on reforming the budgetary process in Abuja...Monday

Magu: The Uncertainty of Acting Capacity Spurs Urgency to Do More Calls for support of anti-graft war Senator Iroegbu in Abuja The Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, has said the uncertainty of his appointment in acting capacity has spurred him to work harder and exceed target within the shortest possible period.

Magu stated this in Abuja while speaking at a one-day workshop on ‘Reporting of Economic Crimes,’ where he encouraged all Nigerians, especially journalists to join hands with the commission in its fight against corruption.

While responding to a question by one of the resource persons and former Director General of the Nigerian Television Authority (NTA), Mr. Tony Iredia, the EFCC

boss said his acting position does not deter him from doing his job but serves as an extra motivation to work round the clock.

He said: “No, no, no, it rather tells me to do more, I feel like let me do this. You never can tell tomorrow the fact that I’m acting gives me more determination, you never know, when I’m there (confirmed) I’ll crush it or fight it.

“That’s why sometimes I put EFCC on 24 hours basis so that we can do what we can within the available time (of acting capacity); I think I have more determination to clear the ground as much as we can.”

Concerning the allegations and recent media war against him, Magu called for support and

constructive criticisms He said: “I prefer to hear the wrong ones (criticism), I don’t expect to be pampered, when I am wrong, tell me.”

According to him, constructive criticism would help him to perform better towards meeting the goals, objectives and targets of the anti-graft agency “It is easier for you to correct my wrong doings so I want to hear the wrongs so that we can correct them, there’s nothing like perfection.

“The evil of corruption affects everybody so it is our duty to put our house in order,” he said.

Magu called for synergy, cooperation and inputs from all members of the society to ensure

that the war against corruption is successful “We have work together, we all are stakeholders in the fight against corruption, and we must and let’s put more efforts and move the country forward.

“The country is so big for each and every one of us to play great roles in Nigeria.

“It is not only for us (EFCC) as we cannot claim monopoly of knowledge of fighting corruption, everybody is a stakeholder, if we work together, we are going to record tremendous success,” he added. The EFCC boss however, lamented that the fight to ensure zero tolerance for corruption in the country is proving difficult because “not all Nigerians believe corruption is wrong.

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WEDNESDAY SEPTEMBER 28, 2016 • T H I S D AY

NEWSEXTRA

Senate Accuses INEC of Conducting Illegal Operations Warns of looming danger in aviation sector

Omololu Ogunmade in Abuja The Senate yesterday expressed concern over the operations of the Independent National Electoral Commission (INEC) and alleged that the commission had been illegally conducting elections since last year.

Also yesterday, the Senate warned of looming crisis in the aviation sector as a result of economic crisis in the country which it said had left the sector “gasping for survival.” It said the situation portended grave danger to air safety in Nigeria.

The parliament according to a motion moved by the Deputy Senate President, Senator Ike Ekweremadu, said whereas a reliable, effective and credible electoral commission was a symbol of viable and promising democracy, the same could not be said of the Professor Mahmood Yakubu-led INEC. According to Ekweremadu, the current composition of INEC is illegal, bearing in mind that at least 20 states of the federation have no resident electoral commissioners in violation of Section 14(2) of the Third Schedule of the 1999 Constitution (as amended).

Ekweremadu who further said INEC could not function optimally without its full composition, lamented what it described as the illegal postponement of elections ordered by Election Petitions’ Tribunals and courts of law in violation of the Section 76 of the 1999 Constitution. He said the act constituted a grave danger to democracy.

He also described as worrisome the habit of inconclusive elections which he said had crept into the

lexicon of Nigeria’s electoral system, describing it as worrisome, whimsical, a wrong signal and bad omen which he said could not be overlooked.

He also regretted that the output of few elections conducted since Mahmood came on board as INEC chairman had been worrisome to the citizenry, a situation which he said would spell doom for the 2019 general election.

He also said the spate of inconclusive elections had deprived both the Senate and some members of state houses of assembly of their full membership and also denying millions of Nigerians their rights of representation in such chambers in violation of Section 14(2) of the constitution.

The Senate therefore called on President Muhammadu Buhari to immediately make appointments to fill vacant offices in INEC and simultaneously provide the commission with with full capacity to conduct conclusive elections.

While asking INEC to immediately conclude rerun elections in required places across the country, the Senate mandated its INEC Committee to conduct a public hearing to review the performance of the commission in the last one year with a view to ascertaining factors causing grave decline in the nation’s electoral system.

Supporting the motion, Senator Enyinnaya Abaribe (Abia South) lamented that for over one year, Anambra Central had not had a representative in the Senate following INEC’s indefinite suspension of election in the district.

AIESEC Alumni Nigeria Holds Omolayole Lecture Series AIESEC Alumni Nigeria has concluded preparations towards the Omolayole Management Lecture series which has been in existence for over 31 years.

The lecture, according the organisers, will be held tomorrow in honor of Dr. Michael Omolayole, a pioneer president of Chartered Institute of Personnel Management Nigeria (CIPM) from 1968 to 1970, a former Chairman/ Managing Director, Lever Brothers Nigeria Plc now Unilever Nigeria Plc; former Presidential Advisory Committee member and Chairman/Director (past and present) of numerous multinational companies to address contemporary socio-economic issues of national and international concern.

In the statement made available

to THISDAY yesterday, “This year, Chartered Institute of Personnel Management, Nigeria (CIPM) will host the Lecture, with the theme: ‘Made-in-Nigeria: Vehicle for the Diversification of the economy’, and will have in attendance guest speaker, Mr. Waheed A. Olagunju, who is the acting Managing Director, Bank of Industry (BoI) with guests from diverse sectors of the economy including CEOs of multinationals, financial institutions, SMEs, social entrepreneurs, non-governmental organisations.”

The statement added that the event would take place at the Academy Inn and multipurpose Halls, Plot 6, Lateef Jakande Road, Agidingbi, Lagos on September29, 2016, from 3p.m. prompt.

Osezua Omoifo Passes on The family of Omoifo has announced the painful exit of their father, brother, uncle and grand father, Mr. Osezua Stephen Omoifo.

The family in a statement issued to THISDAY is inviting friends and well-wishers to the burial ceremony scheduled to take place in Ubiaja, Edo State.

According to the family, on October 4 by 6p.m. will be for service of songs at his residence, 10A Tiwo Street, off Agunlejika Street, Ijeshatedo, Surulere Lagos,

while his body departs Lagos for Omoifo family compound in Eguare Ubiaja, Esan South East Local Government Area of Edo State on October 6, 2016.

“On October 7 by 12noon, the funeral mass will hold at St Benedict Catholic Church, Ubiaja while entertainment of guests follows immediately at Omoifo family compound, Eguare, Ubiaja in Edo State. Sunday, October 9, by 9a.m. will be thanksgiving mass at St Benedict Catholic Church Ubiaja.

He also said the trend was the same in Rivers State as he queried the audacity of INEC to unilaterally breach the law of the land. Abaribe further said the danger of conducting elections under illegal circumstances was that aggrieved candidates could go to court to seek illegal declaration of such results.

The Senate also lamented that after INEC had spent billions of naira on elections, it would turn

around to declare such elections inconclusive only to spend huge sums of money to conduct another election.

In his remark, Senate President Bukola Saraki said the importance of free, fair and conclusive elections could not be emphasised, insisting that it was time the nation came to the end of inconclusive elections.

In his own motion, entitled: ‘Looming Crises in the Nigerian Aviation Industry,’ Senator

Samuel Anyanwu (Imo East), said the economic crisis rocking the sector is “almost forcing some domestic airline operators out of busines and this consequently results in loss of jobs, thereby subjecting many more Nigerians and their families to intense hardship.”

Anyanwu recalled a recent statement credited to the Minister of Aviation, Senator Hadi Sirika, that the entire aviation sector was

collapsing, regretting that there were no functional roads to serve as alternatives to flying. “The Senate is aware of the potential dangers on Nigerian roads and any eventual closure of the air services will spell doom to the economy...” he added.

He added that the precarious situation in which airline operators function would not only discourage air travellers but would also serve as “a disincentive to foreign investors and tourism development.”

PREACHING RELIGIOUS TOLERANCE

Executive Director, Nigerian Interfaith Action Association, Bishop Sunday Onuoha (left), and Sultan of Sokoto, Muhammadu Sa’ad Abubakar III, during the inter-religion conference organised by KAICIID International Dialogue Centre in Abuja ....yesterday …Enock Reuben

Galaxy Note 7: Samsung Announces Voluntary Exchange Package for Nigerian Customers James Emejo in Abuja Samsung Electronics West Africa Limited has complied with the ultimatum given to it by the Consumer Protection Council (CPC), which required it to give a status report on the global recall of Galaxy Note 7 phone in Nigeria following reports of explosion of dozens of the device while charging.

The company, which disclosed that the device was yet to be launched in Nigeria, also announced its readiness to provide voluntary exchange to consumers, who may have purchased it elsewhere in the world and brought it into Nigeria.

According to the status report made available to CPC, “Customers who already have Galaxy Note 7 phones, Samsung will voluntarily exchange their current device with a new one over the coming weeks, adding that “customers who have this device should submit it to Samsung authorised service centre in Nigeria and it would be replaced.

The company further disclosed that though the device was yet to be launched in Nigeria, “we are aware that some persons may have obtained it in one way or another.”

It said the company was currently conducting a thorough inspection with its suppliers to identify possible affected batteries

in the market.

Samsung said: “We wish to advise that we have received instructions from Samsung Head Office in Seoul, South Korea, that a voluntary exchange of the Samsung Galaxy Note 7 phone would need to be conducted.”

The company said though the incidents associated with the defective battery of the device were yet to be reported to have occurred in the country, “we are working closely with our partners to ensure the exchange experience is convenient and as efficient as possible.”

In a statement by CPC spokesman, Mr. Abiodun Obimuyiwa, Samsung also said it would fully cooperate with the recommendations of the Council as customer safety is their greatest priority.

Following reports of explosion of dozens of Samsung Galaxy Note 7 phone while charging, CPC issued a seven-day ultimatum to Samsung Electronics West Africa Limited to provide information on the full status of its compliance with the global directive of Samsung on the recall of the device.

The Council also demanded Samsung to furnish it with other measures the company may have taken to safeguard the safety and interest of Nigerian consumers.

Use of Military Force Will not End Boko Haram, N’Delta Militancy, Onaiyekan, Sultan Tell FG Paul Obi in Abuja The Catholic Archbishop of Abuja Metropolitan See, John Cardinal Onaiyekan, and the Sultan of Sokoto, Muhammed Sa’ad Abubakar III, yesterday said the use of military force by the federal government will not solve the problems posed by Boko Haram and Niger Delta militants in the North-east and the South-south parts of the country respectively.

The duo stated this at the National Inter-faith Dialogue Meeting organised by IPCR and International Dialogue Centre (KAICIID) in collaboration with the Interfaith Media Centre (IMC) in Abuja yesterday.

They stressed that using force to solve a problem has never worked in any parts of the world, therefore calling on the government to dialogue with the groups to restore peace in the country.

While speaking, Onaiyekan urged the government to stop seeing anyone with a link with the sect as terrorist. Such people, he said, should be encouraged to talk to members of the Boko Haram sect.

He said: “We have heard about Boko Haram; we have heard about the Niger Delta militancy and other places, and it probably seems to be taken for granted that all we need is better arms, better trained soldiers and we shall solve the problem.

“I am afraid it has never worked that way anywhere in the world. At some point, after the soldiers have finished their job, human beings must seat around the table and talk.

There is nobody who cannot be talked with because everybody is a human being-the child of a mother and maybe the sweetheart of a woman.

“Our own Boko Haram has not taken 52 years. We are only talking of three, four years. Surely, it is not too late to move seriously in line of dialogue.

That does not mean impunity. That does not mean that nobody cares about the atrocities committed.

“What it means is that no matter the atrocities, it is always possible for human beings to see one another as brothers and sisters.”

The Archbishop of Abuja said government should be prepared to dialogue with everybody. “Very often the military reaction or response can prepare the way for a fruitful dialogue but you must keep dialogue constantly in mind.

“My fear is that we are not thinking of dialogue now. Things can go hand in hand. The federal government should put in a little bit effort, resources and more interest in getting dialogue going.

“If you take Boko Haram for example, I have always said the government should encourage Muslims who want to talk to them to do so instead of seeing anybody who has link with Boko Haram as terrorist.”

WEDNESDAY AUGUST 28, 2016 • T H I S D AY

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CRIME&PUNISHMENT Plateau Government, UNICEFVow to End Child Rape Seriki Adinoyi in Jos Plateau State Government and United Nations Children’s Fund (UNICEF) have resolved to end incessant rape cases against children in the state, noting that over 103 cases of rape have been recorded in the state and most of them were against children.

The state Commissioner of Women Affairs and Social Development, Mrs. Rufina Gurumyen, yesterday noted that her ministry was working hard to ensure justice was done in the reported cases.

The commissioner stated this in Jos while briefing newsmen on the plan of the state government to

launch the campaign on violence against children slated for Thursday.

Also, UNICEF has lamented that about six of every ten children in the country suffer various forms of violence: physical, emotional or sexual, before the age of 18.

UNICEF communication officer, media and external relations, Mr. Samuel Kaalu, also disclosed this yesterday during in a one-day media orientation with the media in Jos. He said it was against the backdrop that violence against children was progressively deteriorating that the Fund and Plateau state ministry of Women Affairs and Social Development

has organised a one-day media orientation on “Violence Against Children” and to organise a campaign to end it.

Kaalu however noted that Nigeria has responded positively to the challenge being the first in West Africa and eight in the World to have risen up to conduct such survey. He also said Plateau State ranks the first in the North and fourth in Nigeria to key into federal government’s fight in violence against children.

Noting that these acts of violence are more in schools, Kaalu urged the Ministry of Education to partner UNICEF in the fight. “It affects their brain, their overall health and

performance in schools.”

He said Child Protection System Strengthening (CPSS); a strategy to proactively tackle this violence was needed in order to reduce menace, adding that Plateau state already has a legal framework on this, but implementation was still a great challenge.

According to Kaalu, the orientation/ethical training was to sensitise the media as well as enhance their skills on reportage of children’s issues as part of the overall effort to raise awareness to end violence against children in Plateau State, given that the role of the media in helping to end the violence.

In Brief Former Nigerian Naval ChiefArraigned for Alleged Corruption

The Economic and Financial Crimes Commission (EFCC) yesterday arraigned a former Chief of Naval Staff, Usman Jibrin, before a court in Abuja on corruption charges. Jibrin, a retired vice admiral, was arraigned alongside two others: Bala Mshelia and Shehu Ahmadu, both retired rear admirals. They were arraigned before Justice A. Umar of the FCT High Court in Maitama, Abuja on a four-count charge of criminal conspiracy. They were docked alongside Habour Bay International Limited. The former senior naval officers according to Premium Times, are accused of buying a house worth N600 million from the account of Naval Engineering Services. The purchase was not captured in the budget. Instead, the documentation of transfer of ownership of the property was done such that a private company owned by Jibrin’s family became the buyer. The defendants pleaded not guilty when the charges were read to them. In view of their plea, counsel to EFCC, Abdullah Faruk, asked the court for a date for commencement of trial. However, Y. C. Maikyau, representing the first and fourth accused, through an oral application made pursuant to Section 36(5) of the Nigerian Constitution, sought for the bail of his clients. Maikyau told the court that the defendants had been enjoying administrative bail granted them by the EFCC and had never breached any of its terms. The counsel said that though he had earlier filed and served the prosecution with a formal bail application, he felt the need to move an oral application subject to the discretion of the court. Counsel representing second and third accused relied on the same arguments in seeking bail for their clients. In response, Mr. Faruk told the court that, he was served the notice Tuesday morning and asked for time to enable him respond appropriately. After listening to the submissions of counsel on both sides, the judge adjourned to today for bail application hearing.

Convicted Terrorist on Fake Voters’ Register, Alleges Oshiomhole

ROYAL BEREAVEMENT

Kogi State Governor, Yahaya Bello (left), and Senator Smart Adeyemi, at the burial of Obaro of Kabba, Michael Folorunsho Olobayo in Kabba in Kogi State....recently

Appeal Court Overturns Atuche’s Acquittal A special panel of the Court of Appeal in Lagos yesterday allowed the appeal filed by the Economic and Financial Crimes Commission (EFCC) against the judgment of a Lagos High Court sitting in Ikeja which discharged the former Managing Director of defunct Bank PHB, Francis Atuche, of the N25.7 billion theft charges preferred against him.

The trial judge, Justice Lateef Lawal-Akapo, had in his judgment delivered on June 22, 2015 upheld the submissions of the defence team including Chief Anthony Idigbe (SAN) and Sylvia Ogwemoh (SAN) that the court lacked jurisdiction to entertain the suit and that the prosecution’s case lacked merit.

Also discharged of the theft charge were Atuche’s wife, Elizabeth and a former Chief Financial Officer of the bank, Ugo Anyanwu.

But the appellate court in its judgment delivered by Justice Gana Mshelia (Mrs) set aside the judgment and order the Chief Judge of Lagos State to reassign the case to another judge for retrial.

Justice Msheila in her lead judgment held that the trial judge erred in law by holding that it was bound on the principle of stare decisis by the decision in Okey Nwosu vs Federal Republic of Nigeria and Akingbola vs Federal Republic of Nigeria.

The appellate court further held

that the lower court erred when it struck out counts 1 to 24 and 26 in the amended information against the third defendant.

Justice Lawal-Akapo had held: “I find no merit in the prosecution’s application, it is hereby dismissed.

The defendants application dated November 27, 2013 succeeds and I hereby make the following orders: “The criminal charge in this suit is hereby struck out and the accused persons namely; Francis Atuche, Elizabeth Atuche and Ugo Anyawu are discharged. The complainant’s notice of plenary objection dated December 3, 2013 is hereby dismissed”, Justice Lawal-Akapo had declared.

But the EFCC in its appeal filed by its counsel, Kemi Pinheiro (SAN), sought an order of the Court of Appeal setting aside the order of Justice Lawal-Akapo striking out the counts contained in the amended information dated June 1, 2011.

Other reliefs sought by the EFCC included an order allowing its appeal and an order directing a continuation of trial and defence before Justice Lateefa Okunnu of the High Court of Lagos State sitting in Ikeja.

The EFCC which based its appeal on five grounds, told the court that the learned trial judge erred in law by proceeding to strike out the entirety of the amended information when by the unambiguous and

plain provisions of Section 252(3) of the Constitution, no exclusive criminal jurisdiction is conferred on the Federal High Court (at least to the exclusion of the Lagos High Court) on the matters provided for under Section 251(1).

The commission contended that it was wrong for the court to strike out counts 1 to 24 and

26 in the amended information against the third defendant when the order of the Court of Appeal against which he claimed the lower court assumed jurisdiction over the charge was in respect of the appeals initiated by the first and second appellants only stressing that the third defendant was not a party to it.

Governor Adams Oshiomhole of Edo State has alerted the public to the existence of a fake voters’ register in the state, which has the portrait of a convicted terrorist, Umar Farouk Abdulmutallab, popularly referred to as the “Underwear Bomber” ahead of the governorship election taking place today in the state. Speaking during a visit to him by the United States Consul General in Lagos, Mr. F John Bray, Oshiomhole said he was shocked to see the portrait of the ‘Underwear bomber’ in the fake register, but with a Benin name. Abdulmutallab was convicted of attempting to detonate explosives hidden in his underwear on board an airline from Amsterdam to Detroit, Michigan, US, on December 25, 2009. The governor who raised concern about the duplication of the voter’s register by the Independent National Electoral Commission (INEC) said: “The foundation for credible election is the voters’ register. Once the voters’ register is manipulated, then you have problems. Right now, we have evidence of two versions of voters’ register – the one they have officially distributed and the one that some elements within the ICT in INEC have also produced in Abuja. And what they have done in the past, which we hear they want to re-enact again, is that they will display one voters’ register which is reasonably accurate, there are still some flaws but let me say it is about 85 per cent accurate, they also have a fake one which they intend to bring and spring a surprise in certain locations where they believe that they have no chance, and when the voters go there and you find a voters’ register different from the one that they know, there will be confusion in those voting centres. At the end, you may end up having people arguing which could lead to violence. We will show you those samples between the one that we know and the one we have gotten through our intelligence, and I want to give a copy to the embassy so that you can see it and study it. That, for me, is the only thing I am worried about. If INEC has two versions of voters’ register and they display one officially, then we have a problem.”

Navy Reads Riot Act to Impersonators, Lagos CJ Sets Free 20 Awaiting Begins Crackdown on Illegal Groups Trial Inmates in Niger Delta Senator Iroegbu in Abuja The Nigerian Navy has vowed to deal decisively with the reoccurring incidence of impersonation of service personnel by criminal elements and illegal groups particularly in the coastal states of the Niger Delta.

The Naval Director of Information (DINFO), Commodore Christian Ezekobe, stated yesterday that while the service has taken measures to checkmate the activities of the imposters, their continuous activities have greatly tainted the good image of the Nigerian Navy.

Ezekobe disclosed that the pseudo organisations that go by the names; Nigerian Merchant Navy, Merchant Naval Force and Nigerian Sea Scout among others have

sprung up, deceived and recruited unsuspecting civilians, dressed up in Nigerian Navy uniforms and parading themselves as personnel.

“In this year alone, about 16 persons have been arrested with the most recent been the case of one Mr. Sunday Livinus Anaefo who was arrested while on illegal escort duties along Ibafon-Victoria Island axis in Lagos. Also one Mr. Ukaegbu Lucky was arrested at Agbara general area of Ogun State for posing as a Nigerian Navy personnel,” he said.

The naval spokesman noted that in a recent raid conducted by operatives of the Nigerian Navy in Badagry area, the camp of one illegal group that goes by the name Merchant Naval Force was discovered and dismantled.

Lagos State Chief Judge, Justice Olufunmilayo Atilade yesterday, granted freedom to 20 inmates of the Ikoyi prison as part of activities marking the beginning of the 2016/2017 legal year. The chief judge, who was accompanied to the prison by senior members of the judiciary, including judges and the Chief Registrar, admonished the freed inmates to be of good behaviour. She said a total of 104 names of inmates were submitted by the Prison De-congestion Committee headed by Justice Oluwatoyin Ipaye for consideration, out of which only 20 are worthy. According to Justice Atilade, the visit which was aimed at prison de-congestion in the state is in the exercise of her powers backed by the Criminal Justice (Release from Custody), Special Provisions Act, Cap C40 2004 Laws of the Federation. “A number of factors have contributed to the large number of awaiting trial inmates. These include ongoing investigations by police, the time lapse between the issuance of the DPP’ s advice and filing of the case in court, operational delays such as transportation from prison to court and lack of legal representation. “Been informed by the prison officials of the offences for which you have been in prison for a period longer than three months, I pronounce. “Pursuant to the provisions of Sections 1(1) of the Criminal Justice (Release from Custody) Act, 2007 as well as section 35 of the 1999 Constitution, you are all hereby released from custody this 27th day of September, 2016.

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WEDNESDAY, september 28, 2016 • T H I S D AY

WEDNESDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

2 0 1 8 W O R L D C U P Q UA L I F I E R

FX Scarcity Threatens Nigeria’s Mission to Zambia Rohr replaces injured Balogun with Agbo

Olawale Ajimotokan in Abuja The Nigeria Football Federation (NFF) is in a fix as it is struggling with preparations for the Super Eagles’ visit to Zambia next weekend for the 2018 World Cup qualifier because of scarcity of foreign exchange.

After failing to qualify for the Africa Cup of Nations next year in Gabon, Nigeria will be pitching to be at the World Cup and salvage its reputation as a continental soccer powerhouse.

THISDAY scooped last night that the high aspiration could be imperiled by the inability of the federation to source for dollars to prosecute the match.

The Super Eagles are expected to travel by a chartered flight to Ndola, for a showdown with Zambia on October 9 in one of the opening fixtures in Group B. A reliable NFF source disclosed last night that aside other obligations, the executive committee was still banking on the Ministry of Sports to provide money to charter a flight to Ndola.

THISDAY also learnt last night that travel agencies were also declining to issue flight tickets to the foreign-based players invited by coach Gernot Rohr, stemming from the federation’s failure to redeem outstanding debts on tickets previously issued.

Rohr, who will be overseeing his second match as the national coach, invited 20 players who ply their trades in Europe for

the confrontation against the Cooper Bullets.

Though NFF did not pay a bonus to the players following their victory against Tanzania in Uyo last month, in an African Cup of Nations match deemed ‘’a dead rubber’’, officials led by the President Amaju Pinnick, are unsure of how to shop for bonus, given the free fall of the naira in the parallel market.

An official, who pleaded not to be named, predicted an unfolding crisis in Ndola in view of the foreign exchange scarcity caused by global decline in price of oil.

The dollars exchanged for N450 to the Naira yesterday in the parallel market, a rate which NFF claimed it making a mess of its operation as its projection was made at the rate of N200 to a dollar for the season.

Meanwhile, Rohr has replaced injured defender Leon Balogun with Uche Henry Agbo. FSV Mainz 05 of Germany centre-back Balogun, who shone in the 2017 Africa Cup of Nations qualifier against Tanzania in Uyo earlier this month, was named in Nigeria’s 23-man roster for the big match before copping an injury.

Granada FC of Spain’s Agbo has already been contacted by Rohr and his invitation letter sent to his club by the NFF. He will join the other players who are expected to start arriving at the Bolton White Hotel and Apartments, Abuja on Sunday.

F E D E R AT I O N C U P

Crown Ambushes FC IfeanyiUbah in Kaduna Promotion-chasing Crown FC of Ogbomosho has two big games within a few days as the Osun team confronts NPFL side FC IfeanyiUbah in the first semi final of the 2016 men’s Federation Cup competition today.

Giant-killers Crown turned back NPFL title-chasing Enugu Rangers among other big conquests on its way to the last four, and would fear no foe when the whistle sounds for hostilities to commence at the Ahmadu Bello Stadium, Kaduna this afternoon.

On its part, the Anambra Warriors are also chasing a continental ticket, hoping to fly Nigeria’s flag in either the CAF Champions League or CAF Confederation Cup next year.

Ifeanyiubah is currently third on the NPFL table and has a final game away to MFM FC in Lagos on Sunday.

Crown also is playing away in its final match of the season to Bendel Insurance of Benin, and will be hoping to gain confidence

from the semi final battle ahead of the match in Benin City on Saturday.

Meanwhile, FC IfeanyiUbah’s goalkeeper Ikechukwu Ezenwa has hinted that the Nnewi club will not take Crown FC for granted the clash in Kaduna.

“We will not underrate Crown because they have proved to be a very good team after they sent packing teams like Rangers, Wikki and Niger Tornadoes,” said Ezenwa.

“We are fully prepared for the match in Kaduna.”

The Super Eagles goalkeeper has recovered from an injury he suffered in Sunday’s league game at home against Enyimba.

The second semi final of the men’s Federation Cup will hold at the Lekan Salami Stadium, Ibadan on Sunday, October 9 between Enyimba FC and Nasarawa United.

The eventual cup winners will represent Nigeria in next year’s CAF Confederation Cup.

Head of Chancery, Nigerian Embassy in Jordan, Abdulhamid Aminu and Ernest Orogun, the Communications Officer, surrounded by Flamingoes and NFF officials on arrival in Amman … Tuesday morning

U-17 Women’s World Cup: Flamingoes Land in Jordan The delegation of Nigeria’s Under-17 Women National Team, Flamingoes, flew into Jordan on Tuesday morning aboard an Emirates Airline flight from Dubai.

The contingent had flown out of Abuja aboard another Emirates Airline flight on Monday night.

The 32-member delegation comprising of 21 players, 9 Officials, NFF Assistant Technical Director, Abdulrafiu Yusuf and

Head of Women Football, Ruth David were on board the same Emirates Airline flight from Dubai with Group C opponents, Korea Democratic People’s Republic. The airplane landed at the Queen Alia International Airport, Amman at 9.25a.m Jordan time on Tuesday.

The Nigeria delegation was received by the Head of Chancery, Nigerian Embassy, Abdulhamid Aminu and Ernest Orogun, the

Communications Officer, as well as members of the Local Organising Committee of the 5th FIFA Under-17 Women’s World Cup. The players and officials later left for Le Royal Hotels and Resorts, Amman where they are lodged.

The Flamingoes will resume training today. The three-time quarter finalists will play their opener against Brazil on Nigeria’s Independence Day

(1st October) by 4pm Jordan time (2pm Nigeria), before games against England and Korea DPR at the Amman International Stadium.

It is worthy of note that only 22 seconds were on the clock at New Zealand 2008 when Nigeria’s Soo Adekwagh scored not only the fastest goal in the history of the FIFA Under-17 Women’s World Cup, but in any FIFA women’s competition.

Holmes, Olagbegi Shine at Lagos Country Club Tennis Festival Matt Holmes defeated Kola Sofola 6-1, 7-5 to emerge Men’s Singles ‘A’ champion as the 2016 Lagos Country Club Tennis Festival came to a colourful end at the weekend.

Omatsola Abati posted a 6-3, 6-1 win over Olukayode Ifeajika to clinch the Men’s Singles ‘B’ title of the three weeks tournament sponsored by Etisalat.

Holmes, the in-form player of the club however had to content

with second position in the doubles as his partnership with Chijioke Agbo lost 1-6, 6-4, 4-6, to Prince Adejoro Olateru-Olagbegi and Tony Unuavworho in the last match of the tournament which was watched by Club President, Kayode Moradeyo, Wale Osomo, the immediate past president, Etisalat officials among others.

The women’s doubles title was won by Tosin Osikoya and Dolapo

Holmes who defeated Lola Aluko andAyo Odiah 6-1, 3-6, 10-7 while the veteran’s doubles was won by Sani/ Obed beat Olagbegi and Akinhanmi.

Nathaniel Aluko beat Tobi Ayoola 9-11,10-1,10-3 to win the under 8 (Red Ball) while Mosisienemo Gabriel defeated Sewa Teluwo 10-1, 10-3 to win the girl’s title. Toluwase Dele-Oshiga topped Fisayo Ariyo 10-4, 10-7 for the under 9 (Orange Ball).

Serena Teluwo edged Olamide Aluko 5-4, 4-2 for the girls under 12 crown just as Filippo Trombi outplayed Ayorinde Gabriel 4-0, 4-0 in the boy’s category.

Kareem Kareem won the boy’s under 18 by beating Gideon Aluko while Isaac Attah and Michael Osho took the senior and junior ball boys titles at the expense of Innocent Joseph and Emmanuel Bassey respectively.

Nigeria Cup 2016: Caddies’ Event Winner, Ganiyu, Bags Pro Sponsorship 100 golfers to storm Ilorin for ‘October Fest’ KunleAdewaleinLagosand HammedShittuinIlorin It was jubilation all through the golf section of Ikoyi Club on Monday as the 2016 Nigeria Cup Committee offers to sponsor Adesanya Ganiyu for professional trainee programme for emerging the best among over 150 others who took part in the caddie event in the ongoing 20th edition of the Nigeria Cup. The offer was the first of its kind in the history of the competition.

Speaking at the closing ceremony of the Caddies’ event on Monday, Chairman 2016 Organising Committee, Bayo Alli, said; “The

idea was to encourage the boys and show them that there is always reward for hard work. We believe that the gesture will go a long way to helping the caddie get more serious in whatever they do.

“We are doing this to show that we support the caddies, we appreciate the role they play in the golfing community and we will continue to support and encourage them’, Bayo Alli, said Adesanya grossed 84-over 18-holes to come tops in the caddies’ event.

The Nigeria Independence Anniversary celebration continues at the golf section with a special independence kitty today while

the pros will take their turn on the course on Thursday.

The tournament is a Pro-Am and will feature professional golfers playing alongside their amateur counterpart.

Meanwhile, about 100 golfers across the 36 states of the federation have concluded arrangements to storm Ilorin Golf Club from Friday Sept. 30, for a one-day 18 holes tournament tagged ‘October Fest.’

The club’s Captain, Mr. Layi Maliki, listed golfers from Mic-Com Golf and Country Club, Ada, Kadariko Golf Club Kainji, Minna Cantonment Golf Club, Ibadan Golf Club and Ogbomoso Recreation

Club amongst those to compete for honours in the invitational competition.

Maliki explained that the competition will have players compete for honours in different categories in the amateur rank while the professionals have handsome prize money at stake for them.

The Ilorin Club captain added that event will tee off with a welcome cocktail party for participants on Friday at 7:00 p.m while golfers will take to course on Saturday, Oct. 1,starting from 7:00a.m. He disclosed that the club’s Hole One will be rededicated to late Dr. Olusola Saraki.

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WEDNESDAYSPORTS

CHAMPIONS LEAGUE

Late Schuerrle Strike Denies Real Madrid Victory Leicester wins first Champions League home match

Borussia Dortmund’s Andre Schuerrle came off the bench to snatch a late goal and earn a deserved point as they twice came from behind to draw 2-2 with UEFA Champions League holders Real Madrid in a compelling Group F encounter last night.

The Germany international lashed high into the net from close range to level in the 87th minute after Raphael Varane had restored Real’s advantage in the 68th.

The France defender’s goal made up for an earlier slip that allowed Pierre-Emerick Aubameyang to cancel out Cristiano Ronaldo’s 17th minute opener towards the end of the first half.

Dortmund and Real each have four points with the Germans top on goal difference, while Sporting Lisbon are third on three points after beating visitors Legia Warsaw 2-0.

In England, Leicester beat Porto

in their first home Champions League game to maintain the winning start to their first season in Europe’s premier club competition.

Islam Slimani, who had a prolific scoring record against Porto with his former club Sporting Lisbon, headed the only goal from a Riyad Mahrez cross.

Porto substitute Jesus Corona hit the post, but the Foxes held on.

Leicester lead Group F by two points from second-placed FC Copenhagen, who they meet on 18 October.

Slimani, a deadline-day signing for a Leicester club record £29m, tormented Porto so much during his time with Sporting that he earned the nickname “the Dragon Slayer”.

In three previous matches in 2016 alone, the Algeria international had netted five times.

Here, he met the teasing, curling cross of the excellent Mahrez,

diving towards the ball at the back post to head past a reluctant Iker Casillas.

It is his third goal in four games for the Foxes, all of which have been scored with his head.

RESULTS

Monaco 1- 1 Leverkusen Leicester 1-0 FC Porto Copenhagen 4 -0 Brugge D’Zagreb 0 –4 Juventus CSKA 0- 1 Tottenham Dortmund 2–2 R’Madrid S’Lisbon 2 – 0 L’ Warsaw Sevilla 1- 0 Lyon

TODAY

Napoli v Benfica Ludogorets v PSG FC Rostov v PSV Celtic v Man City B’ M’gladbach v Barca Besiktas v D’Kyiv Atletico v B’Munich Arsenal V FC Basel

Borussia Dortmund celebrating the equalising goal by Andre Schurrle in the 2-2 draw with Real Madrid… last night

Bayern Out to Settle Allardyce Nabbed in Undercover Sting, Steps Spanish Score in Madrid Down as England Manager After three consecutive semifinal defeats against Spanish clubs in the UEFA Champions League, Bayern Munich head to Atletico Madrid for today’s group match with a point to prove.

“We want to show that we can do better than in the last few semifinals.

We certainly have a score to settle there,” said Bayern forward Thomas Mueller before the team jetted off to Madrid.

After the highs of beating Borussia Dortmund in the 2013 Champions League final came

Bayern’s lows of semifinal exits to Real Madrid, Barcelona and then Atletico in each of the last three seasons under Pep Guardiola.

Atletico has won 25 of its last 30 home European games making the Estadio Vicente Calderon something of a cauldron.

Last season’s semifinal exit at the hands of Diego Simeone’s Atletico was particularly painful for Bayern, who won the return leg 2-1 in Munich after losing 1-0 in Madrid as the Spanish side reached the final on away goals.

Sam Allardyce has left his position as England manager by mutual consent after just one game in charge of the national team.

Allardyce was filmed advising undercover journalists on how to circumvent rules against thirdparty ownership, according to UK’s Daily Telegraph.

Video accompanying the report shows Allardyce meeting twice with journalists posing as representatives of a Far East agency who were interested in bypassing rules from the Football

Association and FIFA. “You can still get around it. I mean, obviously, the big money’s here,” Allardyce fondly called ‘Big Sam’ said on the video, while also calling the regulations “ridiculous.”

A statement from the FA read: “The FA can confirm that Sam Allardyce has left his position as England manager. Allardyce’s conduct, as reported today (yesterday), was inappropriate of the England manager.

“He accepts he made a significant error of judgment

and has apologised. However, due to the serious nature of his actions, The FA and Allardyce have mutually agreed to terminate his contract with immediate effect.

“This is not a decision that was taken lightly but The FA’s priority is to protect the wider interests of the game and maintain the highest standards of conduct in football.

The manager of the England men’s senior team is a position which must demonstrate strong leadership and show respect for the integrity of the game at all times.”

BACK PAGE – POSTSCRIPT

Sam Allardyce

WAZIRI ADIO

RECESSION AS OPPORTUNITY FOR REVERSING RESOURCE CURSE a point. However, by the time oil prices fell just below $100 in September 2014, we were on the way to distress district, close to the dark place we were just 30 years earlier. It is important to underscore this again: when oil was selling for $20 per barrel we got by but when it started selling for a little below $100, it was another season for weeping and gnashing of teeth, with most states and even the federal government struggling to pay salaries. What happened with the two episodes is that we got deluded into thinking high prices would last forever, we stretched public finances to breaking point, and we saved little for the rainy day.

But there is a third episode: oil prices tumbled from a high of $147 in June 2008 to $38 in December 2008. Yes, the dip was short. But we survived that slump largely because we had reserves in excess of $60 billion, which tied us over that bust time. Interestingly, the savings were largely accumulated at a period when oil never rose above $70 per barrel, when our oil supply was constrained on account of militancy in the Niger Delta and when $12 billion was paid to get debt forgiveness.

But crude oil per barrel sold for

an average of $77.38 in 2010, $107.46 in 2011, $109.45 in 2012, and $105.87 in 2013. However, by the time oil prices slipped to yearly average of $96.29 in 2014 and $49.49 in 2015, we did not have the kind of cover we had six years earlier not just because we didn’t save enough but also because we had also over exposed ourselves, as will be illustrated shortly.

If the time between the first and the third episodes is long enough to induce amnesia, the space between 2008 and the onset of the current slide in oil prices is short enough to remind us of the risk we are constantly exposed to. But we failed to learn.

Another known risk that turns natural resources to curses is that resource-rich countries are prone to corruption, low levels of accountability, and high incidence of profligacy.

Because of the nature of resource rents, it is easier for those in authority in extractive economies (as opposed to tax economies) to corner and capture public resources and expend them anyhow. Beyond the predisposition to graft and the wastefulness, resource rents concentrate and consolidate public resources in a few

hands, nurture a ruling elite more interested in private gains than the common good, foster a rentier, patronage, and predatory political ethos, fuel intense competition for power, conflicts, poverty and inequality, inverse the relations between citizens (the principals) and those in authority (the agents), and distort the interaction between state and society. All these conduce to opaque and unaccountable management of the revenues from natural resources. Even before the ongoing revelations and probes, reports by the Nigeria Extractive Industries Transparency Initiative (NEITI) had provided more than ample evidence of the mind-boggling mismanagement of Nigeria’s main source of revenue.

The other well known risk that resource-rich countries are exposed to is a dependency condition called the Dutch Disease. It manifests this way: massive inflows of foreign exchange on account of the high price of a natural resource raise the comparative value of the local currency and turn the economy into a high-cost one.

This means that other sectors, like manufacturing and services, that the country can earn

foreign exchange from become uncompetitive and are crowded out; and imports also become cheaper, eventually knocking off local industry. A double but dangerous dependency is thus created: the country depends solely on the natural resource for foreign exchange; and depends on imports for almost all its needs. While consistently high prices will mask the trouble, onset of low prices will burst the bubble. This is where, sadly, Nigeria has found itself today.

The 1,851% increase in the price of oil between 1972 and 1980 infected us with the Dutch Disease, so much so that we depend on crude oil for 85% of government revenues and about 95% of exports. And we import almost everything, including, shamefully, refined petroleum products (which constitute about 40% of forex demands.)

This composite picture should show why Nigeria is in trouble today: little savings from a long boom time, and a 75% plunge in the price of a product that accounts for more than 80% of government revenues and foreign exchange in a country where so much revolves around government and in an import-dependent economy; fall in monthly forex

earnings from $3.2 billion to about $400 million sometime this year; decline in oil production from 2.2 million bpd to a little over 1 million bpd; and the growth in monthly import bill from N148.3 billion in 2005 to N917.6 billion in 2015 (519% increase). While it can be validly argued that recession could still have been averted, the oil and dollar dependence created a downward spiral: fall in the value of the naira, cost-push inflation (since most things including industrial inputs are imported), drop in disposable incomes, which is compounded by the fact that most states are owing salaries, and the resultant negative impact on demand and ultimately on production. True, oil and gas sector now accounts for only 9% of our GDP, but our unhealthy dependence on it for government revenues and foreign exchange imbues the sector with a disproportionate heft. This we need to fix in a systematic and sustainable way.

We can easily spend our way out of this recession or bump up production in high growth areas. Oil prices and production may even rise again, making the get-out-of-recession task easier.

But all these will not cure us of the oil curse. Hopefully, the

present pain will permanently bury doubts about the need for a robust stabilisation fund and the imperative of strengthening transparency and accountability mechanisms like NEITI. But we also need to permanently puncture the lie that we are a rich country just because we have oil. It is a trite fact that the wealth of nations is not buried under the soil. Countries become rich when their people and their companies produce value-adding, highly-sought, cutting-edge goods and services.

But beyond fixing the defective structure of our economy, we also need to reinvent our politics.

A governance model that is defined by extraction, sharing and consumption surely cannot lead to development. And by the way, development doesn’t happen: it is created. Rahm’s Rule should thus be our article of faith: “you never want to let a serious crisis to go to waste.”

The crisis of this recession has thrown a massive opportunity our way, the opportunity for a total reset. It will be a shame if, again, we fail to seize this chance to heal our country.

• Adio is the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI)

Wednesday September 28, 2016

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Price: N250

MISSILE

Senate to President Buhari

“The body language of Mr President must change. His body language discourages investment” – From the Senate communiqué after the deliberation on the economic challenges facing the country with a view to recommending appropriate measures.

ABRAHAMNWANKWO GUEST COLUMNIST

Is Nigeria’s External Debt of Investment Grade?

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s Nigeria reforms, restructures and strategises towards pulling back the economy unto a path of inclusive and sustainable growth, it is useful to pay detailed attention to the sectors and subsectors. This is because while summary pictures succeed in showing the prevailing conditions, the secrets to the various pieces of the solution lie in the details. That is, appropriate disaggregation is good for effective diagnostics, analytics and strategics, as well as for understanding investor calculus.

In respect of Nigeria’s public debt, it is important conceptually and practically, to recognise that the domestic and external components are conditioned and governed by dynamics that are considerably different. Indeed, it is pertinent to note that in spite of the drastic drop in the country’s foreign exchange earnings, following the oil price shock since mid-2014, the external debt liability hardly constitutes a source of vulnerability.

A review of the sources of strength in Nigeria’s external debt profile, shows that as of June ending 2016, external debt accounted for only 18.33% of the country’s total debt stock of about N16 trillion (US$61 billion) – compared to the optimal target of 40% established in the country’s medium term Debt Management Strategy (2016-2019).

Moreover, within that very small external debt, concessional debt (with average interest rate of about 1.25% per annum and average tenor of about 40 years) accounted for about 80% of the total. Similarly, the ratio of the external debt to the GDP was only about 2.24% as at end-June, 2016 – compared to the internationally defined

Minister of Finance Kemi Adeosun threshold for external debt, of 40% for the applicable peer group. Correspondingly, the external debt service accounted for an insignificant proportion of the total public debt service expenditure: The annual external debt service expenditure for the last five years was always less than 6.5% of the total public debt service outlay.

These features reflect the strategic stance taken after the exits from the Paris and London Club debts in 2005 and 2006 respectively. Nigeria deliberately decided to develop and depend more on the domestic bond market as a reliable alternative source of borrowing by the government. This was to avoid compelled dependence on external sources.

Returning to policy and market indicators as shown in the table, we need to evaluate the ability

WAZIRIADIO POSTSCRIPT

of the country to service its external debt as and when due. The capacity to service external debt is defined in terms of the cover provided by export earnings of the borrower. It is evident that external debt stock is currently about 23% of the export earnings, whereas the applicable threshold is 150%: this means that the indicator is seven times stronger than it needs to be. Similarly, the external debt service is currently about 0.74% of total export earnings, compared to the applicable threshold of 20%: this means that this liquidity indicator is 27 times stronger than what is required to guarantee that the external debt can be serviced as and when due. In addition, there is an administrative safeguard: since 2005, Nigeria’s prudential public debt management practice has been that debt service charge is the topmost item in the sequence of the line of expenditures in the budget. Only very few other developing economies could boast of such a healthy and attractive external debt condition.

Therefore, taken by itself, Nigeria’s external debt is uniquely of top investment grade. Empirically, this position is well supported by investors and the markets. That is why in spite of global economic, financial and foreign exchange tribulations, as well as local structural challenges which have manifested since mid-2014, Nigeria’s Eurobonds have continued to trade creditably at stable low yields relative to the weight of the challenges and compared to other countries’ Eurobonds.

For example, Nigeria’s 10-year Eurobond (2013-2023), which traded at an average yield of about 6.945% for 2015 and at 8.680% for January 2016, has been trading at a daily yield of between 6.147% and 6.571% so far throughout the month

of September 2016. Similarly, the current yields on both the 2013 – 2018, five-year Eurobond and the 2011-2021, 10-year Eurobond are lower than their January 2016 figures by about 280 basis points and 215 basis points, respectively. In summary, Nigeria’s Eurobonds are substantially in greater demand and are more highly priced than they were about a year ago.

But what do these market statistics show? One, they show that after the initial distraction and exhibition of historically-ingrained pessimistic tendency, investors and the markets have had to realign to the reality that Nigeria’s external debt is, indeed, of a top-class grade – it is adequately insulated from shocks, even deep ones.

Two, they show that investors are confident that Nigeria has the capacity to move, and is moving, from economic downturn to turnaround and prosperity – in spite of initial glitches.

Three, they show that no matter how much the speculative invasion unleashed against Nigeria’s economy by unimaginative and analytically-static credit rating and news agencies, the boundless investment opportunities, market resilience and positive dynamics of ongoing reforms, which characterise Nigeria’s economy, are well-known to, and usefully digested by, real investors – local and foreign.

Four, and finally, they show that investors have substantial appetite for new Eurobond issues from Nigeria – an appetite which, in spite of acknowledged alternative investment destinations, only Nigeria can satisfy.

• Dr. Nwankwo is the Director-General of the Debt Management Office, Nigeria

waziri.adio@thisdaylive.com

Recession as Opportunity for Reversing Resource Curse

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nd, sadly, it came to pass. It is well predicted that most countries blessed with natural resources, even in the best of times, perform worse economically than countries not so endowed; and that, when times are tough, countries that are dependent on natural resources come to an assured grief. There is a popular name for this strange but common condition: resource curse. It sounds metaphysical, it seems counter-intuitive even, but it is a position supported by enough evidence. And there can’t be better evidence than this: a Nigeria that is in the choke-hold of economic recession right after 15 years of consistently high oil prices, with over N70 trillion of oil revenues earned by the federation.

A recession might be a dramatic inflection point, but the brutal fact is that our country has never really been in sound economic health. A long spell of rising oil prices in much of our over four-decade addiction to oil had put us on a permanent high, masked the hollowness of

our economic well-being, blind-sighted us to the dangers dancing in plain sight, and induced a costly work-avoidance in our leaders. Now that we are at this terrible pass, it will be tempting to just focus all our energy at getting growth back to positive zone. Without a doubt, getting out of recession should be the first order business.

But doing only that will show us up, again, as a people eternally incapable of learning. This should be the time to finally wean ourselves of the unhealthy dependence on crude oil for most of our exports and government revenues; a time to reset the foundations of our economy and even of our politics; a time to get a permanent cure for what deeply ails us.

Clearly, natural resources do not come embedded with supernatural curses, as the positive experiences of Norway, UAE, Malaysia and Botswana have shown. But it is also clear how natural resources end up as blights, and not blessings, just as it is clear what to do to reverse the curse. So the problem is not lack of knowledge. The problem

is that resource-endowed countries either do not do enough to prevent the sad prophecy from fulfilling itself or do not do enough to ‘cure the curse’ after it has manifested. And these countries fail to take both preventive and curative measures because countries blessed with natural resources are prone to certain risks and disposed to certain choices that create delusions, dependencies and distortions, which inexorably turn natural resources to impeders, rather than enablers, of development.

One known risk is that the prices of natural resources fluctuate. This creates revenue instability for countries that depend on resource rents to fund their budgets. Since this is known, the sensible thing would be for such countries to save enough when the prices are up as insurance against when the prices are down, and to use the windfall to create other more stable streams of income and to invest in the productive capacities of their people. But most resource-dependent countries rarely do that, as a surge of easy money induces the delusion of everlasting riches. Such countries

get unreasonably high when prices of their natural resources are high and set themselves up for an inevitable fall when prices inevitably tumble.

Three episodes in four decades of our history provide good illustration. In 1972, a barrel of crude oil sold for a yearly average of $1.82. By 1974, oil price leapt to $11 per barrel, then to $29.19 in 1979, and then to $35.52 in 1980. But by the time the price of oil marginally dropped to $29.04 in 1983, our economy was already in trouble. It is important to look at the figures again: we were not in trouble when oil was $1.82 in 1972, but we were in a deep mess 11 years later when oil was $29.04.

A second episode: at the outset of democracy in 1999, oil sold for less than $20 per barrel (in actual fact, our Brent sold for a monthly average of $15.23 in May 1999) . In the 15 years between 1999 and 2014, oil prices rose steadily (except for 2008/2009), soaring to almost $150 per barrel at Continued on page 47

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