TUESDAY 11TH SEPTEMBER 2018 by THISDAY Newspapers Ltd

MTN Sues AGF, CBN over Tax Arrears, Funds Repatriation Group CEO: We will overcome challenges in Nigeria Emma Okonji in Durban, South Africa MTN Nigeria has dragged the Attorney General of the Federation (AGF) and the

Central Bank of Nigeria (CBN) before the Federal High Court to challenge a directive that the telecoms company should refund $8.134 billion to the bank as well as pay $2 billion

to the federal government in tax arrears. MTN Nigeria prayed the court to restrain the CBN and the AGF from taking further action in respect of

their directives. While the CBN accused MTN Nigeria of illegally repatriating the sum of $8.134 billion out of Nigeria between 2007 and 2015, the AGF also

accused the telecoms company of unpaid tax arrears of $2 billion within the same period. CBN Governor, Mr. Godwin Emefiele, had said the investigation into the

activities of MTN Nigeria spanned over a period of 30 months, on several issues and not just on the illegal capital Continued on page 6

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2019 Elections: A Close Contest, but PDP Will Win, Says The Economist HSBC: Buhari’s second term poses risk to economic devt Nume Ekeghe, Nosa Alekhuogie in Lagos and Adedayo Akinwale in Abuja The Economist Intelligence Unit (EIU), the research unit of

The Economist Magazine, has predicted that the opposition Peoples Democratic Party (PDP) will defeat the ruling All Progressives Congress (APC) candidate in the upcoming

2019 presidential election. EIU stated this in its latest country forecast overview on Nigeria that was obtained yesterday by THISDAY. The EIU, which gave

an array of reasons for its prediction, said even though it would be a close call, the opposition PDP would win the election. It predicted slowdown in

economic activities in Nigeria as politics takes centre stage. The Economist’s report came to light a day after the New Telegraph published another research report by

a multinational banking and financial services company, HSBC, which said a second term for President Continued on page 6

Intrigues in Lagos Race as Tinubu’s Mandate Group Backs Sanwonolu against Ambode Gboyega Akinsanmi A web of intrigues surfaced yesterday as Lagos State Governor, Mr. Akinwunmi Ambode, and two others, Mr. Jide Sanwonolu and Dr. Obafemi Hamzat, picked the governorship nomination forms for the All Progressives Congress (APC) ticket for the 2019 contest in the state. The three of them are known godsons of the party’s national leader, Senator Bola Tinubu, who, it has been variously speculated, has unresolved issues with Ambode. The initial information THISDAY had yesterday was that Ambode proceeded to Abuja to pick up his forms after getting signals from Tinubu that the coast was clear for him to make his move for a second term of office. But by last night, sources said, the tide had changed in an intricate political maneuver that threatens to leave the incumbent governor high

and dry. With the entrance of Sanwonolu and Hamzat into the race, a storm, THISDAY gathered, is about to hit the Lagos political firmament, and Tinubu might find himself in a complicated dilemma. According to a THISDAY source, the governor’s main opponent is being backed by the Mandate Group, his godfather’s associates, who felt slighted by his policies that had gravely injured their economic lifelines. In fact, one Ayilara, believed to be an inner caucus member of the Tinubu political machine, was said to have purchased the forms for Sanwonolu, using one of his office staff to pick the forms on his behalf. THISDAY gathered that leading members of the group mobilised all the party’s local government chairmen last night to Watercress Hotel, Ikeja, believed to be owned Continued on page 8

Local Firms’ Low Capacity Sustains Foreign Insurers’ Grip on Nigerian Airlines… Page6

INCUMBENT VS INSURGENT... Lagos State Governor Akinwunmi Ambode (left) and main challenger, Mr. Jide Sanwonolu, after collecting their All Progressives Congress governorship nomination forms... yesterday

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Local Firmsâ&#x20AC;&#x2122; Low Capacity Sustains Foreign Insurersâ&#x20AC;&#x2122; Grip on Nigerian Airlines Chinedu Eze and Ebere Nwoji Experts have identified low capacity and high premium as factors that have continued to compel Nigerian airline operators to seek insurance coverage abroad despite the federal governmentâ&#x20AC;&#x2122;s local content law and National Insurance Commissionâ&#x20AC;&#x2122;s (NAICOM) directive on aviation insurance in Nigeria. The situation thus, has positioned aviation insurance as a major channel for foreign exchange outflows. Some insurance and airline operators attributed the development to the high level of risk in Nigeria, compared to some other countries. Speaking in an interview with THISDAY on the matter, the CEO of Aero Contractors, Captain Ado Sanusi, said one of the reasons Nigerian airlines prefer to insure their aircraft with

foreign companies is because of capacity. He explained that the local insurance companies do not have the capacity and that is why it takes a bit longer time to pay claims when they come. According to Sanusi, the local market is not ripe to wholly and fully insure aircraft, saying there is no reason for indigenous insurance operators to attempt carrying risks they cannot handle. According to him, this explains why the local insurance companies re-insure risks with international companies so that the foreign companies that have the capacity could support them in carrying the risks. â&#x20AC;&#x153;You cannot insure your aircraft locally when you know that the local market does not have the capacity to carry the risk. â&#x20AC;&#x153;For example, if you buy your aircraft for $100 million

and you have three aircraft acquired at that price, which is $300 million, and you want to insure them locally, can the market carry the risk? â&#x20AC;&#x153;This is why airlines insure with international companies, not because we donâ&#x20AC;&#x2122;t want to insure with local insurers. If you insure outside, you are exposed to the Asian market, the European market and the US market and the risk is shared with re-insurers and when there is compensation, it would be easy to pay claims. This is a shared risk,â&#x20AC;? Sanusi said. He, however, commended the NAICOM, saying the decision to allow airlines insure part of the risk in Nigeria and the other part with foreign insurers was commendable. Presently, Nigerian airlines insure 30 per cent of the risk with local insurance company and 70 per cent with international insurance company.

But, Sanusi stressed the need for effective coordination by NAICOM, so that when compensation occurs, the local and international companies can work together in the payment of the compensation. â&#x20AC;&#x153;NAICOM says that you can insure a certain amount of the risk locally and insure the rest outside. This is commendable but there should be coordination between the local and the international market and this coordination should be enshrined in the regulatory framework of the commission,â&#x20AC;? Sanusi said. Commenting on this, aviation insurance expert and Managing Director Consolidated Hallmark Insurance, Eddie Efekoha, said Nigerian airline operators should stop benchmarking their premium rates with countries such as South Africa, the United Kingdom and other developed countries, arguing that safety culture in Nigera remains very

poor compared with those of other countries. Efekoha insisted that was no basis for comparison between Nigerian aviation insurance providers and their foreign counterparts because the level of risk exposures of both differs. According to him, countries' risks' exposure differ. â&#x20AC;&#x153;When we get our things right, the premium can reduce. Of course, size is an issue. You are generating a premium for instance that cannot buy one plane but like the likes of BA, their premium can buy three Planes. So size is an issue,â&#x20AC;? he explained. Continuing, Efekoha said, â&#x20AC;&#x153;you find out that we have multiplicity of problems when it comes to aviation insurance in Nigeria and you must take all of these into account in your rating.â&#x20AC;? On the issue of capacity, aviation insurance expert and

former Managing Director, Cornerstone Insurance, Jacob Erahbor, said business operators especially those in aviation and oil and gas sectors giving capacity as reason for taking their risks abroad were â&#x20AC;&#x153;just deceiving themselves.â&#x20AC;? He said, â&#x20AC;&#x153;This is so because insurance business by its nature is about risk sharing, therefore every operator that wants to do the business in a professional way must share the risks with other insurers.â&#x20AC;? He said even among foreign insurers whom Nigerian aviation, oil and gas sector operators prefer to give their businesses, do so through risk sharing. On his part, the Managing Director, Boof Africa Insurance Brokers, Olumide Fatagun, said there is a general poor attitude of Nigerian airline operators towards insurance premium payment.

differing directions by various powerful interest groups,â&#x20AC;? the report stated. â&#x20AC;&#x153;Fiscal expenditure will remain dominant by recurrent spending despite attempts to boost capital investments. Efforts to boost non-oil tax revenue will be constraint by weak bureaucratic capacity and low economic growth. Constrained by a crippling infrastructure deficit, economic growth will be well beneath level needed to boost job creation and increasing living standard. â&#x20AC;&#x153;Inflation will generally remain high over the forecast period (2018-2022) amid expansionary fiscal policy and high food prices stemming from government efforts to limit import and support local producers. â&#x20AC;&#x153;The authorities will continue to interfere in the foreign exchange market although the degree of interference should eventually lessen with higher oil prices supporting reserves and broad economic confidence slowly improving. The naira will nonetheless depreciate over 2019-21 and be broadly stable in 2022,â&#x20AC;? the report explained.

Furthermore, the EIU held the view that Nigeriaâ&#x20AC;&#x2122;s current account would record marginal gain over the forecasts period, saying pick-up in oil prices would be offset by recovering import demand. The difficult business environment will restrict the development of non-oil exports, it added. The report further pointed out that without a collective resolve, it would prove impossible to bring permanent peace to the large parts of Nigeria hit variously by an Islamist insurgency in the north, ethno-nationalism and piracy in the main oil-producing region and secessionism in the Biafra region, as well as inter-religious tensions and disputes over land access across the centre of the country. â&#x20AC;&#x153;It will prove hard to build a more effective security apparatus while also creating economic opportunities for local populations; poverty lies at the root of much of the instability. â&#x20AC;&#x153;Our central forecast is, however, that the 2019 elections will be completed without a widespread breakdown in stability with Nigeriaâ&#x20AC;&#x2122;s

democracy proving once again to be robust enough to endure. â&#x20AC;&#x153;However, we expect major unrest to continue in 2020-2022 as comprehensive solutions prove too complex and costly to implement in the medium term.â&#x20AC;? It noted that given the severe risks to stability, speculation over the threat of a military coup or a civil war was likely to surface periodically. It stated, â&#x20AC;&#x153;That these issues are part of the popular discourse highlights the seriousness of the challenges facing Nigeria, but we consider a widespread breakdown of security to be unlikely; the military is more professional and has been depoliticised since the junta stepped aside in 1999. â&#x20AC;&#x153;Meanwhile, there is little appetite outside more extremistsâ&#x20AC;&#x2122; agitators for a return to civil war, given memories of how disastrous the 1967-1970 conflict was for the country. â&#x20AC;&#x153;Nevertheless, as the countryâ&#x20AC;&#x2122;s leadership struggles to shift Nigeria onto a more sustainable and robust pat of economic development, the risks to stability will intensify as more and more Nigerians

being made and the processes that are being followed. â&#x20AC;&#x153;In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done yesterday. â&#x20AC;&#x153;MTN remains fully committed to Nigeria and remains resolute that the company has not committed any offences and will continue to defend its position vigorously. The company will continue engaging with the relevant authorities, and further information will be provided as and when available.â&#x20AC;? Meanwhile, the Group Chief Executive Officer of MTN, Mr. Rob Shutter, also said yesterday in South Africa, that the telecoms company would overcome its challenges in Nigeria, and move on with its telecoms business in the country, where it currently has 55 million subscribers out of its 220 million subscribers from 21 countries

where it operates. "In spite of our recent challenges in Nigeria, we will continue to invest in the Nigerian telecoms market and we will definitely find a way to overcome the financial challenges," Shutter said at the opening ceremony and press conference of this year's' International Telecommunication Union (ITU) World conference holding in Durban, South Africa. According to MTN Nigeria, it would continue to deny all charges related to the CBN and AGF allegations over illegal CCIs and unpaid taxes respectively. The four banks involved in the alleged violation of the extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995, and the Foreign Exchange Manual, 2006, were last week debited a total of N5.87 billion as fines.

2019 ELECTIONS: A CLOSE CONTEST, BUT PDP WILL WIN, SAYS THE ECONOMIST Muhammadu Buhari would gravely stunt the economic development of the country. Buhari is already preparing for a re-election in February 2019. A group, Nigeria Consolidation Ambassadors Network (NCAN) had last week purchased N45.5million nomination forms for the president who remained unchallenged as at yesterday. Collection of nomination forms closes today. The opposition PDP is also in the process of selecting its flag bearer. With 13 aspirants picking up the N12million presidential nomination forms, the Board of Trustees (BoT) of the party yesterday set up a 12-man committee to liaise with the contestants and work out the possibility of producing a consensus candidate from among them. The London-based magazine, which also anticipated a depreciation of the naira, said further in its assessment that Buhari was fast shedding support from within the APC with governors and lawmakers defecting to the opposition en

masse. â&#x20AC;&#x153;Intra-party politics would be chaotic ahead of the poll and we ultimately expect the incumbent to lose power,â&#x20AC;? it said. According to the magazine, â&#x20AC;&#x153;The 2019 elections will be a close contest between the ruling APC and the PDP. We expect the PDP presidential candidate to win, but for the next administration to flounder against the same problems as the incumbent one. â&#x20AC;&#x153;The next government is likely to be led by the PDP, the main opposition, potentially in a coalition with smaller parties, but instability will remain an insoluble challenge. â&#x20AC;&#x153;Internally, not all ambitious politicians from the APC who have defected will be rewarded with places in the next government; or if they are, it will mean that pre-existing grandees within the PDP will have been sidelined. â&#x20AC;&#x153;Whoever ends up feeling cheated will eventually turn on the new administration, as is happening to the APC now. There is also a unifying PDP presidential candidate, with around 16 aspirants competing

for the nomination. â&#x20AC;&#x153;A weak APC before the election and a troubled government thereafter implies that Nigeriaâ&#x20AC;&#x2122;s manifold security threats will continue to fester. â&#x20AC;&#x153;Parliamentary rifts will remain the main problem, and this applies no matter who is in charge, given competing priorities between representatives from different regions and the absence of a common ideology within parties.â&#x20AC;? Continuing, it noted that policy reforms, particularly in the vital oil industry would be slow as a result of division in the political elite between advocates of tough, unpopular market reforms and those who refer pandering to nationalistic and pro-subsidy interest groups. The latter group was likely to remain in the ascendancy, it added. According to the EIU, politicisation of economic policy would also slow reforms and at times actively decelerate economic growth. â&#x20AC;&#x153;The Central Bank of Nigeria will not act completely independently, and the overall policy agenda will be pulled in

Continued on page 8

MTN SUES AGF, CBN OVER TAX ARREARS, FUNDS REPATRIATION repatriation. The CBN governor had explained that the hammer on MTN Nigeria was clearly because they took liberty for licence in flouting Nigeriaâ&#x20AC;&#x2122;s foreign exchange laws in the manner of the funding of their equity investment into MTN and subsequent capital repatriation that resulted thereafter. â&#x20AC;&#x153;They brought in $402 million and said about $350 million of that was equity and the balance was loan, and they were issued Certificates of Capital Importation (CCIs) for the equity. They later reversed that position when they realised that the loans will not attract the kind of taxation equity investment will attract. â&#x20AC;&#x153;And they altered the structure of their funding in a clear violation of the spirit and intent of Nigeriaâ&#x20AC;&#x2122;s foreign exchange regulations,â&#x20AC;? he had explained.

Emefiele had insisted that MTN Nigeria manipulated the regulations for maximum profit and tax avoidance, without regards to the laws when they embarked on unauthorised conversion of loans to equity so as to game the system and exploit loopholes. Although MTN had denied any wrong doing in two different statements it released earlier, the telecoms company, yesterday, went to court to challenge the orders to pay such huge amount, in order to protect its assets in Nigeria and shareholder rights within the confines of the law. It explained in its latest statement, "In order to protect MTN Nigeria's assets and shareholder rights within the confines of the law, we have applied in the Federal High Court of Nigeria for injunctive relief restraining the CBN and the AGF from taking further action in respect of their orders,

while we continue to engage with the relevant authorities on these matters.â&#x20AC;? Commenting on the development, MTN Nigeria Corporate Relations Executive, Mr. Tobe Okigbo, said, â&#x20AC;&#x153;The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted. â&#x20AC;&#x153;They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes. "The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law. â&#x20AC;&#x153;With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations

TOP GAINERS NGN NGN % SUNUASSURANCE 0.02 0.22 10.0 UNIONDAC 0.02 0.29 7.4 HONEYWELL 0.08 1.52 5.5 UPL 0.08 2.00 4.1 MUTUALBENEFITS 0.01 0.28 3.7 TOP LOSERS NGN % NESTLE 145.00 1,355 9.6 FORTEOIL 1.95 19.05 9.2 REGENCY 0.02 0.21 8.7 JAPAUL 0.02 0.24 7.6 LAWUNION 0.04 0.50 7.4 HPE Nestle Nig Plc â&#x201A;Ś1,355.00 Volume: 137.625 million shares Value: N1.356 billion Deals: 3,104 As at yesterday 10/09/18 See details on Page 31

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NEWS

NPA: Warri Channel Dredging Contract Award Followed Due Process

Eromosele Abiodun

The Nigerian Ports Authority (NPA) yesterday denied allegation of fraud in the award of the $44.861million (N16.150 billion) Warri Channel dredging contract to Dredging International Services Nigeria (DISN) Limited. The NPA said in a statement that contrary to what is being fed to the public, the award of the contract was guided by provisions of the Public Procurement Act (PPA) in all its procurement processes. According to NPA, it did not violate the law in the Warri contract or any other contract. The NPA added that it had maintained a dignified silence on the allegations until now as a result of the confidence that all processes as enumerated in the PPA of 2004 were followed in the award of the contract. According to the NPA, â&#x20AC;&#x153;If indeed, the said entity had any valid grounds for protests,

the law courts, rather than newspapers, where they have continued to peddle lies against the authority, would be their recourse. In addition to that, all procurement by the authority is subject to the supervision/ approval of the Bureau of Public Procurement (BPP) and the authority received the necessary approvals before going ahead with the award of the contract for the dredging Warri Channel. â&#x20AC;&#x153;All arithmetic computations so done by the authority are in line with the PPA which so permits for the procuring entity to do such and consequent documentations of the computations were submitted to BPP for no objection which was obliged. The Authority, upon receipt of the petition alleging that Dredging International Nigeria Limited had been convicted by a law court in Switzerland, sought the legal counsel of the Office of the Attorney General of the Federation and requested

NPA MD, Hadiza Bala-Usman an investigation of the petition by the Economic and Financial Crimes Commission (EFCC).â&#x20AC;? It added, â&#x20AC;&#x153;In addition to this, although Dredging International Nigeria Limited provided us with a sworn affidavit in support of claims that they were different from the company that was so convicted, the authority engaged a legal practitioner who embarked on an independent investigation of the petition and

the claims of the company. â&#x20AC;&#x153;The investigation revealed that allegations that Messers Dredging International Services Nigeria Limited had been convicted in a law court in Switzerland for corrupt practices involving some officials of the Nigerian government including the NPA were incorrect. The company so convicted in the Swiss Court is Dredging Cyprus Ltd which is a co-subsidiary of DISN. The two companies have different legal personalities as so recognised by the provisions of the Companies and Allied Matters Act (CAMA), 2004. â&#x20AC;&#x153;The conviction of a subsidiary company indeed is not the conviction of all companies within a group of companies. In addition, none of the directors so convicted for complicity by the court in Switzerland is on the board of Dredging International Nigeria Limited. The result of these investigations was made available to the BPP.â&#x20AC;? Nevertheless, the NPA

said the BPP itself set up an independent investigation of the petition and came to the conclusion that the company was eligible to participate in the bidding process. â&#x20AC;&#x153;There have also been allegations of conflict of interest coming from the fact the Managing Director of the NPA alongside some of the Directors are on the board of Bonny Channel Company, a joint venture set up as a long term structure for the continuous management, maintenance and provision of navigational aids of the Bonny channel with some Directors of the awardee. But these directors are on the board of the BBC on the strength of their current appointment. The NPA is chair of this JV by virtue of its ownership of 60 per cent shareholding in the Special Purpose Vehicle (SPV) and our directors do not have any private interests in the company. â&#x20AC;&#x153;The other thing to say is that the company that has

continued to promote this extensive blackmail of the NPA is part of the consortium whose contract was terminated for having claimed to execute works of $34.6 million in the Calabar Channel out of which $12.5 million has been paid without evidence of work done. The Nigerian Government is currently in court with this consortium seeking for the refund of the authorityâ&#x20AC;&#x2122;s $12.5 million for work claimed to have been done without evidence,â&#x20AC;? it stated. The NPA urged Nigerians to disregard this attempt to drag it in the mud by an organisation, â&#x20AC;&#x153;which is surely still dazed by our audacity to terminate the Calabar Channel contract and take them to court for the refund of monies collected.â&#x20AC;? The NPA pledged its commitment to transparent operations for the ultimate benefit of the Nigerian economy and thank all Nigerians for their support.

INTRIGUES IN LAGOS RACE AS TINUBUâ&#x20AC;&#x2122;S MANDATE GROUP BACKS SANWONOLU AGAINST AMBODE by a former chief security officer to Tinubu, Mr. Tayo Ayinde, to fill Sanwonoluâ&#x20AC;&#x2122;s nomination forms, which submission closes tomorrow. The three-corner fight, said an insider of the Tinubu political machine, promises to be testy and could leave the political family worse off if not cautiously conducted. Sanwonolu, said to have been brought into politics by Tinubuâ&#x20AC;&#x2122;s former deputy, Mr. Femi Pedro, is believed to be favoured by the national leader. He came into public prominence as the political adviser to Pedro and graduated to commissioner for Establishment, Training and Pensions under Mr. Babatunde Fashola, serving only one term. He is currently the Managing Director, Lagos State Property Development Corporation (LSPDC). Hamzat is not new to the turf. He had played there before against the formidable, including Ambode. In the fight for the APC ticket for the 2015 contest, he came second, despite been dumped mid coast by the then incumbent, Mr. Babatunde Fashola, the current minister of

Power, Works and Housing, whom Hamzat now works for as a special adviser. He was Fasholaâ&#x20AC;&#x2122;s Commissioner for Works & Infrastructure and gave a good fight. Hamzat is not likely to be a push over, coming from the Abuja flank of the Lagos political divide that has delivered two gubernatorial elections to the party in the South-west, Ondo and Ekiti States. Lagos may well be their final push after Osun State governorship election that holds next week. Given that Hamzat belongs to the Abuja caucus that is known to be bent on clipping the wings of Tinubu, can the national leader cut his nose to spite his eyes? â&#x20AC;&#x153;That is the intrigue we are seeing playing out. We can only wait to see the end of it,â&#x20AC;? said one insider that craved anonymity. A close associate of Tinubu, however, told THISDAY last night that he might have no choice but to support Ambode because â&#x20AC;&#x153;he is a lesser evil,â&#x20AC;? Hamzat having challenged the authority of the national leader before, and showing little or no remorse by joining the Abuja group in a grand plan

to liquidate him politically. What is more, said the associate, Hamzat comes from an established political family with strong roots in Lagos grassroots politics. His father, Oba Olatunde Hamzat, is a strong political leader with wide contacts with grassroots leaders across the state. â&#x20AC;&#x153;He is now the monarch of Afowowa, a town in Ewekoro Local Government Area, Ogun State. That is the main reason Oba of Lagos, Oba Rilwan Akiolu, opposed Hamzat's aspiration in 2014. But the monarch still oils his political machinery in the state,â&#x20AC;? he said. â&#x20AC;&#x153;Tinubu has no choice than to support Ambode for several reasons I would not disclose now,â&#x20AC;? the associate stated Following some level of clearance from Tinubu yesterday morning, according to a source in the know, Ambode proceeded to Abuja, where he obtained the governorship nomination forms in company with the state Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem; Commissioner for Information & Strategy, Mr. Kehinde Bamigbetan; and Commissioner for Commerce,

Industry & Cooperatives, Mrs. Olayinka Oladujoye, among others. He returned to Lagos shortly and met with his cabinet and party officials during which he formally declared his intention for a second term of office. Leaders of the party in attendance included the Secretary to the State Government, Mr. Tunji Bello; Sen. Musiliu Obanikoro; Sen. Gbenga Ashafa, Sen. Ganiyu Solomon; members of the House of Assembly and all chairmen of the 20 Local Government Areas (LGAs) and 37 Local Council Development Areas (LCDAs). Ambode recalled how the journey began four years ago when he called on Lagosians to join him in a journey of selfless service to build a secure and prosperous state driven by a vibrant economy and supported by quality service, equity and justice. He said, â&#x20AC;&#x153;I have fulfilled my promises to you to make Lagos work for all. With your support, we have made Lagos a better place and changed the face of our state. I did not do it alone; we did it together, because you believed.â&#x20AC;?

According to the governor, â&#x20AC;&#x153;Lagos State has remained steadily prosperous because of your positive outlook. I urge you to always stay positive in your personal and communal lives. On my part, I will continue to aspire to do great things.â&#x20AC;? He thanked APC leaders for giving him the platform to contribute to the growth and development of Lagos State while appreciating party leaders and members in the state. He also thanked Lagos residents for supporting his administration. Though a lot had been achieved, Ambode noted that he was nonetheless not daunted or tired to achieve a lot more for the state. â&#x20AC;&#x153;In these three and a half years, I have seen visible proof that we can achieve unbelievable things when we all come together with no more than our belief in our dreams. We achieved because you believed. But there is still a lot more to be done,â&#x20AC;? he said, adding, â&#x20AC;&#x153;But I am not daunted. I am not tired. I am sure you feel the same way because we all envision a better Lagos, a Lagos of our dreams. I humbly call you again, to give me your support as I seek to continue

with your mandate to steer the affairs of our State. I ask you to believe again and together, letâ&#x20AC;&#x2122;s achieve more.â&#x20AC;? Also speaking, senator representing Lagos East Senatorial District, Senator Gbenga Ashafa, said Ambode had already been endorsed for a second term by Tinubu on account of his sterling performance in office. He said, "We are so proud to have Ambode as our governor. As the senator representing Lagos East Senatorial District, which produced him even though he is for the whole of Lagos State and Nigeria, we are saying we are very happy to endorse him Ambode) for a second term on the instruction of our leader.â&#x20AC;? The governorâ&#x20AC;&#x2122;s political future had been in abeyance as a result of speculated disagreements between him and his godfather, necessitating high level interventions by senior party stalwarts, including Vice President Yemi Osinbajo. But with the Mandate Group now massed behind Sanwonolu, it is most unlikely, said an authoritative source, that Tinubu would dare his political base to chest out for Ambode.

said that the committee would impress it on the aspirants, the dangers inherent in having such a large number of them in the race. He stressed that the committee would not compel any of the aspirants to withdraw from the race, but rather they would be persuaded to put the interest of the party above their personal interests and ambitions. Jibrin, who admitted that the present number of aspirants was complex, noted that there were fears that there could be disagreement among the contestants that could lead to major divisions after the primaries.

Chairman of the party, two national officers, as well as the leaders of the party in both chambers of the National Assembly. The forum, in a communiquĂŠ issued yesterday and signed by its Chairman and the Governor of Ekiti State, Mr. Ayodele Fayose, at the end of an emergency meeting it held between September 9 and 10, 2018 in Abuja, also condemned what it called the suspicious payment of N16 billion to Osun State purportedly from the Paris Club Refund, saying it believed that the money was meant to 'fund corrupt inducement of voters' in the forthcoming governorship election in Osun State scheduled for September 22, 2018. It decried alleged use of security agencies to perpetrate electoral fraud as it happened in Ekiti, Osun and Rivers State and urged the security agencies to be non-partisan in the performance of their duties in accordance with the provisions of the constitution.

2019 ELECTIONS: A CLOSE CONTEST, BUT PDP WILL WIN, SAYS THE ECONOMIST question what they have to lose from pushing for violent change.â&#x20AC;?

HSBC: Buhariâ&#x20AC;&#x2122;s Second Term Poses Risk to Economic Devt In its own report, put together by its Global Research Unit, entitled, â&#x20AC;&#x2DC;Nigeria, Papering over the Cracks,â&#x20AC;&#x2122; HSBC said Nigeriaâ&#x20AC;&#x2122;s current economic struggles look set to continue if Buhari wins a second term in office. According to the financial institution, although the presidentâ&#x20AC;&#x2122;s â&#x20AC;&#x153;approval ratings sit near all time lows,â&#x20AC;? a development, it said, â&#x20AC;&#x153;largely reflects the impact of Nigeriaâ&#x20AC;&#x2122;s painful recession in 2016-17 and the sustained economic hardship that has accompanied his presidency, including rapidly rising joblessness, and poverty,â&#x20AC;? the president will once again lead the APC into the 2019 elections. It, however, stated, â&#x20AC;&#x153;A second

term for Mr. Buhari raises the risk of limited economic progress and further fiscal deterioration, prolonging the stagnation of his first term, particularly if there is no move towards completing reform of the exchange rate system or fiscal adjustments that diversify government revenues away from oil.â&#x20AC;? The multinational banking group, which is Europeâ&#x20AC;&#x2122;s largest by total assets, noted that while higher oil prices have brightened Nigeriaâ&#x20AC;&#x2122;s macro outlook, boosting export earnings, improving the supply of foreign exchange, and supporting naira stability, the Buhari administration was yet to address the economyâ&#x20AC;&#x2122;s structural shortcomings. It said, â&#x20AC;&#x153;Economic growth remains sluggish and reliant on the rebound in oil output while the non-oil economy, which accounts for about 90 per cent of GDP, continues to languish with many service sectors still mired in contraction. â&#x20AC;&#x153;Joblessness continues to rise,

up almost three-fold in three years to 19 per cent in Q3 2017, pushing the number in poverty to 87 million. â&#x20AC;&#x153;Meanwhile, current account improvements may have pivoted on higher oil prices, but they also derive from on-going import restrictions and limited FX access for many sectors of the economy.â&#x20AC;?

PDP BoT Sets Up Committee to Pick Consensus Presidential Candidate Perhaps looking to make The Economist forecast real, the BoT of the PDP yesterday revealed that it had set up a 12-member committee to discuss with the party's 13 presidential aspirants, with the view to picking one of them as consensus candidate. Those in the race for the presidential ticket of the PDP are, former Vice President, Alhaji Atiku Abubakar; Sokoto State Governor, Mr. Aminu Tambuwal; Gombe

State Governor, Dr. Ibrahim Dankwambo; President of the Senate, Dr. Bukola Saraki; former Governor of Jigawa State, Alhaji Sule Lamido; former Governor of Kaduna State, Senator Ahmed Makarfi; and former Minister of Special Duties and Inter-governmental Affairs, Alhaji Tanimu Turaki (SAN). Others are: former President of the Senate, Senator David Mark; former Governor of Kano State, Senator Rabiu Kwankwaso; former Governor of Sokoto State, Alhaji Attahiru Bafarawa; former Plateau State Governor, Senator Jonah Jang; Mr. Stanley Osifo and Dr. Baba Datti Ahmed. The BoT had last week met in Abuja where they said they were working to ensure that they reduce the increasing number of presidential aspirants, but noted that they would not force any aspirant to step down. However, the Chairman of the BoT, Senator Walid Jibrin, in a text message to THISDAY

Governorsâ&#x20AC;&#x2122; Forum to Meet with Presidential Aspirants Also yesterday, the PDP Governors' Forum resolved to have an all-inclusive meeting with all the presidential aspirants, the National

T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

TUESDAY SEPTEMBER 11, 2018 ˾ T H I S D AY

NEWS

Group News Editor Ejiofor Alike Email Ejiofor.Alike@thisdaylive.com, 08066066268

Buhari Mourns as 15 Died, 50 Hospitalised in Nasarawa Fire Incident Omololu Ogunmade in Abuja and Emmanuel Ukumba in Laﬁa President Muhammadu Buhari last night condoled with the government and people of Nasarawa State over the tragic fire incident which started from a petrol station in Lafia, killing about 15 peaople and destroying vehicles and several shops. The president, according to a statement by his media aide, Mallam Garba Shehu, was briefed on the scale of destruction of lives and property during which he expressed grave concern over the high toll in the fire incident. He also said the president consoled the bereaved families and

appealed to the state and federal authorities as well as well-meaning persons in the state to ensure that the best medical assistance is provided for the injured. The statement added that the president wished “that this kind of tragedy never happens to any part of the country.” A gas explosion at a filling station, Natson Petroleum Nigeria Limited in Lafia left about 15 persons dead while over 50 others were severely burnt and rushed to some hospitals. The cause of the explosion, according a source around the filling station, was due to leakage of gas from one of the reservoirs, which caught the attention of two motorists.

It was gathered that when the drivers of the vehicles attempted to run away from impending danger, they collided and went up in flames. Consequently, nine vehicles, including two fuel tankers, eight motor cycles and three tricycles, were caught in the inferno and burnt down with their occupants. Meanwhile, the casualty unit of the Dalhatu Araf Specialist Hospital (DASH) in Lafia was littered with burnt bodies of the victims as medical personnel of the hospital battled to save their lives. This was even as sympathisers thronged to the hospital premises

to catch a glance of the horrific incident as victims of the inferno were conveyed in by officials of the Federal Road Safety Commission (FRSC). When THISDAY spoke to one of the sympathisers, Ibrahim Mushasha, at the entrance of the casualty unit of the DASH, he confirmed that over 50 severely burnt persons have been conveyed into the unit for urgent medication to save their lives, while others were rushed to some private hospitals in the state capital. “They were brought in unconsciously naked as their

bodies were burnt as they struggle in anguish. “However, we are yet to ascertain the number of those who died in the inferno as the dead bodies were still been counted. “Some of the victims were caught up in the inferno as they were plying the Lafia-Abuja road, especially students of the Nasarawa State Polytechnic, Lafia, who were on their way to school for lectures, as well as other persons travelling on that road as at the time of the gas explosion,” he said. A female medical worker attending to the victims at the

casualty unit of the hospital declined comment on the number of casualties so far conveyed into the casualty unit for treatment when THISDAY sought to know the number. She however said the immediate concern of officials of the hospital personnel was to save lives first. Also, a security officer from the Nigeria Security and Civil Defence Corps (NSCDC) on duty at the casualty unit declined comment that it was only personnel from the casualty unit that could talk to the media on that explosion and its consequences.

NEITI: FG Shared N3.95tn Revenue with States, LGs in 1Q 2018 Chineme Okafor in Abuja Within the first half of this year, the federal, states and local governments in Nigeria shared a total of N3.95 trillion from the Federation Account, the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed this yesterday. According to the NEITI in the latest edition of its Quarterly Review, the disbursements were made by the Federation Accounts Allocation Committee (FAAC), and they represented an increase of 41 per cent when compared to the N2.79 trillion disbursed in the first half of 2017. The disbursements, it added, equally represented a 95 per cent increase in the N2 trillion disbursed within the same period in 2016. The NEITI’s review provided highlights and in-depth analysis of disbursements by FAAC for the second quarter and the first half of 2018. In it, NEITI noted that the federal government got N1.65 trillion out of the money while the states received N1.38 trillion and local governments eventually got the least share of N795 billion. A statement signed by NEITI’s Director of Communications and Advocacy, Dr. Orji Ogbonnaya Orji, which was sent to THISDAY in Abuja also accompanied the review document. The statement explained that the disparity in the revenues received by each of the three tiers of government was based on the revenue sharing formula of the federation as stipulated in the constitution. However, the Quarterly Review stated that the lowest monthly figure of N635.6 billion disbursed in the first half of 2018 was N121.4 billion higher than the highest monthly figure of N514.2 billion disbursed in the first half of 2017 and N218 billion higher than the highest monthly figure N417billion for 2016. The review thus explained: “These figures clearly indicate that revenue accruing to the federation in the first half of 2018 completely outstripped revenues in the previous two years.” It further disclosed that

total FAAC disbursements in the second quarter of this year was 46 per cent higher than the figure for the same period in 2017, and 127 per cent higher than the figure for the same period in 2016. According to it, while N2 trillion was shared in the second quarter of this year, N1.38 trillion was disbursed during the same period last year and only N886.38 billion was shared in the second quarter of 2016. “In fact, Q2, 2018 was the first time an amount in excess of N2 trillion was disbursed since Q3 2014. This is a run of 14 consecutive quarters of disbursements below N2 trillion,” the review document revealed. NEITI stated that the phenomenal increase of disbursements recorded in the second quarter of 2018 was the highest to the federation since the third quarter of 2014. It linked this development to the rise in crude oil prices and similar increase in oil production. In this regard, it explained: “Average oil price in 2016 was $43.5 per barrel, while in 2017, oil price averaged $54.2 per barrel. However, in the first six months of 2018, average oil price was $70.6 per barrel. “Thus, on the average, oil price increased by 62.2 per cent between 2016 and the first half of 2018. Total oil production in 2016 was 661.1 million barrels while the figure was 690 million barrels in 2017. “In 2016, average monthly oil production was 55.1 million barrels while it was 57.5 million barrels in 2017. For the first two months of 2018 for which data is available, average production was 59 million barrels.” Going further, the review stated that net FAAC disbursement to states during the period under consideration saw Delta and Osun States receiving the highest and lowest revenues respectively. It stated that “the highest receiving state was Delta State with N101.19 billion, while the lowest receiving state was Osun State with N10.24 billion. This implies that Delta State received 988 per cent more than Osun State received.”

YOU ARE WELCOME...

Nigerian Ambassador to Russia, Prof. Steve Ugba (right), welcoming the President of the Senate, Dr. Abubakar Bukola Saraki, during a Senate delegation’s arrival in Moscow ....yesterday.

APC Aspirants in Last-minute Rush to Beat Tomorrow’s Deadline Dariye allegedly seeks re-election from prison Ruling party rattled, says it won’t interfere with INEC SerikiAdinoyiinJosand OnyebuchiEzigboinAbuja The National Secretariat of the All Progressives Congress (APC) in Abuja was a beehive of activities yesterday as many aspirants of the party besieged the place to either purchase nomination forms or submit completed ones. This is coming as a former Governor of Plateau State and Senator representing Plateau Central in the National Assembly, Chief Joshua Chibi Dariye, who was recently convicted and jailed by an Abuja court for financial misappropriation, is now allegedly seeking re-election from prison in the 2019 general election. The alleged purchase of the APC’s nomination form by the jailed Dariye is said to have rattled the ruling party. The ruling party has, however, dismissed the allegation by the Peoples Democratic Party (PDP) that it has pocketed the Independent National Electoral Commission (INEC) head of the 2019 general election. Going by the APC’s extended deadline for the sales and submission

of nomination forms, the exercise will end on Tuesday. One of notable aspirants that came to purchase nomination forms yesterday was the Lagos State Governor, Akinwumi Ambode. Ambode arrived at the party secretariat at about noon and went straight to the office of the National Organising Secretary to pick his nomination form. Other governorship aspirants who had picked their forms were Attom Magira from Borno State; Zamfara Deputy Governor, Ibrahim Mohammed, and Mr. John Upan Odey Jnr who is contesting for the APC governorship ticket for Cross River State. Also yesterday, a former Inspector General of Police (IG), Suleiman Abba, joined the race for the Jigawa State Central senatorial district on the platform of the APC. He said those currently campaigning for state police in Nigeria are not sincere. Addressing journalists yesterday after he picked his nomination and Expression of Interest forms at the National Secretariat of the APC in Abuja, Abba said he

was in the race to bring quality representation for his constituents and contribute meaningfully to national development, adding that the country was not ripe for the state police. Meanwhile, Dariye, who was recently convicted and jailed by an Abuja court for financial misappropriation, is now allegedly seeking re-election from prison in the 2019 general election. A Federal Capital Territory High Court in Gudu, Abuja in June convicted and sentenced the former governor to 14 years imprisonment for diverting public funds worth N1.126 billion. However, while still serving his term at Kuje prison, Dariye last Friday allegedly purchased the Senate nomination form for re-election on the All Progressives Congress (APC) platform sources revealed. Pictures of the purchased and filled forms were displayed online last Sunday evening affirming that the convicted Senator was ready to run for a third term in the Senate, while still serving his jail term. The Senator’s kinsman, Shadrach

Kopmuk, who published the photos of the form on Facebook, wrote: “Just to notify all teeming supporters of our amiable Senator Chief (Dr) Joshua C. Dariye, that the people’s senator has purchased and filled the APC nominations and declaration of interest to contest in the forthcoming APC primary election and 2019 general election to represent the good people of Plateau Central in the ninth assembly.” Other sources said Dariye has commenced processes for the appeal of his sentence, and might be let off the hook. “If he hadn’t considered an appeal, his seat would have been declared vacant, but it can’t be because with the appeal, the case is still undecided,” one of the sources added. If he becomes successful, Dariye might be the first Nigerian politician to contest elections from the prison. If he wins the election, he will be the first Plateau Senator to serve three tenures. Meanwhile the report of alleged purchase of nomination form by Dariye has become a source of worry to the APC.

T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

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T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

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COMMENT

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

SURVIVAL OF THE LESS FIT

There is need to chart a new course to stem the collapse of the manufacturing sector, writes Ajibike Onajin

ust recently, one of the biggest players in the manufacturing sector, Procter & Gamble Nigeria closed its $300m plant at Agbara in Ogun State just a year after it was opened amid fanfare by Vice- President Yemi Osinbajo, ostensibly to showcase some measure of success in governmentâ&#x20AC;&#x2122;s policy to grow the non-oil sector. The company tried to downplay the disaster as a restructuring of its operations but P&G, which manufactures household goods including soap and diapers, had become the latest victim of the inclement economic environment that has defined the Muhammadu Buhari administration in its three plus years in power. Not long ago, PZ Cussons (the UK-based consumer goods giant), released a statement to the UK stock market that blamed its significant profit drop to low liquidity in the economy. The company posited â&#x20AC;&#x2DC;macro-conditions in Nigeria have resulted in a sharp decline in Africa profits for the year and, hence, a disappointing result for the group.â&#x20AC;&#x2122; Indeed some 272 manufacturing and other plants have gone belly up in 2016 alone, under Buhari, who came into office on the back of promises to boost the economy and create jobs. While this government has made a habit of blaming the nationâ&#x20AC;&#x2122;s woes on mismanagement by the past administration, it has come short of injecting fresh ideas on how to revamp the economy and position it to create the very jobs it has promised. On the contrary, jobs are disappearing by the day, with many companies closing or trimming their workforce just to stay afloat. Perhaps the most critical factor responsible for this was the foreign exchange shock that hit corporate entities two years ago when government adjusted the rate sharply downwards ostensibly to protect our external reserves following the collapse of oil prices. However, in a country where manufacturers are largely dependent on imported raw materials and machinery, stakeholders have criticised the refusal of government to adjust import tariffs to accommodate the higher cost of inputs. The result has been much tougher times for manufacturers which hold the key to the elusive industrialisation and associated benefits of job creation, increased purchasing power and eventual recovery and growth. For an economy still yet to recover fully from recession, the golden standard would be for government to supply fiscal incentives or reliefs for the real sector. In this case, it has been the opposite, apparently fixated on boosting revenues, it held on to a punitive tariff regime and indeed introduced new excise duties in the food

INVESTORS ARE MOVING OUT AND LOOKING OUTSIDE NIGERIA. ANDELA, A SOFTWARE DEVELOPMENT FIRM, PARTLY FUNDED BY FACEBOOK FOUNDER, MARK ZUCKERBERG IS LOOKING TOWARDS EAST AFRICA FOR MORE INVESTMENTS AND NEW DEVELOPERS DESPITE ZUCKâ&#x20AC;&#x2122;S HIGH PROFILE VISIT TO THE LAGOS CAMPUS LAST YEAR

and beverages sector, which has seen companies such as Nigerian Breweries reporting profit declines in the second quarter of this year. Key economic stakeholders such as the Lagos Chamber of Commerce and Industry (LCCI) did not see the sense in the approved amendment to the excise duty rates for alcoholic beverages, spirits and tobacco and the plan to extend it to several other basic items. LCCI Director General, Mr. Muda Yusuf, posited that such moves would further aggravate the poverty situation in a country where 60 per cent still live below the poverty line and undermine the general welfare of citizens. Already, data from the Manufacturers Association of Nigeria point to weak recovery in that sector as output grew by 0.14 per cent in the fourth quarter of 2017 up from -2.54 per cent recorded in the corresponding quarter of 2016. Manufacturers are still grappling with the same problems of capital, logistics problems, bad port access roads and transportation networks. Many have not recovered from the currency depreciation of the past two years, which has kept operational expenses beyond control, forced them to raise prices and created room for the influx of all sorts of cheap alternatives form China and the rest of the world. For manufacturers, this has been reflected in a rise in inventory a confirmation of lower purchasing power that portends even more job losses, and lower private sector capacity to create jobs. MAN data, showed that membersâ&#x20AC;&#x2122; inventory - unsold goods totaled N321.12 billion in 2017 against N90.43 billion recorded in 2016; thus, indicating N230.77 billion or 255.19 per cent increase over the period. Yet, more taxes are being imposed on local firms. Beyond the fiscal issues are the larger concerns of growing insecurity across the country and effects on the agric and other sectors as well as foreign investments. The Central Bank of Nigeria warned recently that Nigerians should prepare for higher food prices as a result of lower yield from the agric sector where widespread violence have cut back farming activity. The net effect would be a reversal of the gains made in moderating inflation, which has declined for the past 15 months consecutively and higher cost for companies, which utilise local raw materials from the agric sector. Onajin wrote from Lagos

IBRAHIM BABANGIDAâ&#x20AC;&#x2122;S LEGACIES

Emmanuel Yawe argues that the former military president left worthy legacies

ice-President Yemi Osinbajo last Sunday took a swipe at past governments in Nigeria accusing them of draining huge funds with little or no investment in infrastructure. Specifically, he accused the IBB/ Abacha administration, the Obasanjo/Yarâ&#x20AC;&#x2122; Adua governments and the Jonathan administration of this gross dereliction of responsibility. It has become the trade mark of this government to hold past governments responsible for all ills in society even where empirical evidence shows otherwise. Three years after the government was voted into power, its top officials by their pronouncements give an impression that they are still on a campaign trail. One wonders whether they believe they were elected to govern or discredit previous governments - endlessly. I do not hold brief for the Obasanjo/Yarâ&#x20AC;&#x2122;Adua or the Jonathan government. My intention below is to give facts and figures as they concern the IBB administration. All through the years Ibrahim Babangida was president of Nigeria, (1985-1993) the cost of oil which was, and still is, the main foreign exchange earner for Nigeria never went beyond $50 per barrel per month on the average. Despite this, the government was able to initiate and execute laudable projects which are there for all to see. If not for blind prejudice, Prof. Osinbajo should have known that it was Babangida who moved the seat of government from Lagos to Abuja in 1991, a project which had been on the drawing board through successive governments since the first pronouncement on it was made by General Murtala Muhammed in 1976. In Lagos where Osinbajo served as a Commissioner for Justice and Attorney General for eight years, Babangida left a legacy of infrastructure, the most spectacular of which is the Third Mainland Bridge which had been on the drawing board of successive governments and which he completed and launched. Before this, he carried out a comprehensive rehabilitation of Eko Bridge. Apart from the Presidential Villa which serves as the residential and office complex for the president and his vice, President Babangida provided the basic infrastructure that made Abuja begin to function as Nigeriaâ&#x20AC;&#x2122;s capital. It is either

that the vice-president is poorly briefed or his memory has failed him. He ought to at least know which government built his office complex and that of his principal. The infrastructure that Babangida provided for Abuja are just too numerous to mention in the space any newspaper will be willing to give. We can only mention the Supreme Court Complex; the Federal Secretariat; Apo Legislators Quarters; ECOWAS Secretariat Headquarters Abuja; the International Conference Centre, Abuja; Abuja International Airport Phases 1 and 11, Central Bank and the NNPC Headquarters Abuja; Nigeria Security Printing and Minting Company (The Mint) complex, Abuja. Other projects worth mentioning in Abuja include the National Intelligence Headquarters; State Security Services Headquarters; provision of infrastructure in Jabi and Gudu Districts; Abuja Central Areas Phases 1 and 11; Asokoro and Asokoro South West Extension 1 and 11; Maitama and Wuse General Hospitals; Asokoro, Kubwa and Abuja Municipal Water Supply Schemes; Federal Mortgage Bank Headquarters; the National Women Centre, etc. These and many more infrastructure provided during the IBB years were responsible for making Abuja a reality. Additionally, we can count an endless list of landmark elements of economic structures put in place by the IBB administration. These have survived to this day (with a handful of them merely rechristened) and they constitute a stable foundation for future governments to place their building blocks on. It was the Babangida administration which for the first time in the countryâ&#x20AC;&#x2122;s history, gave Nigeria a structure and legal framework for managing its relationship with its oil company partners and the opportunity for accelerated technology acquisition by Nigerians in the upstream sector. On coming to office in 1985, the Babangida government quickly made the final investment decision that same year on the plastics industry raw materials, generating Phase 1 Petrochemical Industries, which for long had remained on the drawing boards with past generation of

bureaucrats. Construction quickly commenced and the project was completed and inaugurated in 1988. The major component industries are: the Polypropylene Plants, Ekpan and the Carbon Black Industry both in Warri, Delta State; the Linear Alkyl Benzene Industry and the completion of the Kaduna Liquefied Petroleum Gas (LPG) both in Kaduna. In 1988, the government created NPDC, along with other subsidiary companies of NNPC to â&#x20AC;&#x153;take over the major functions of oil exploration and production responsibilities of the NNPC and was initially endowed with ten concessions.â&#x20AC;? Three years later in consonance with the indigenization policy, a substantial number of indigenous companies were allocated acreages and provided with special incentives in order to give Nigerians first-hand experience in oil exploration and production. The NPDC executed its first major exploration task in Abura Field located in OML (open mining license), which it bought over from the former owners: TENECO, MOBIL and SUNRAY in 1990. It became a success story and by the next year, it was producing 3,000 barrels of crude oil per day without any assistance from any expatriate company. The Abura feat was followed up in 1990 by NPDC successfully drilling Credo â&#x20AC;&#x201C; 9 well, boosting its production capacity to 10,000 barrels per day in 1992. In the gas sub sectors, the Babangida administration recorded two major achievements - the laying of the foundation stone of the Oso Condensate Project in Eket which has a 500 million barrels recoverable barrels daily production of 100,000 barrels and the successful construction of the Nigeria LNG at Bonny. The government also completed and inaugurated the Escravos to Lagos pipeline and achieved the experiment on the gas-powered car. It was the Babangida administration that created the institutional framework for resolving the environmental pollution and other problems created in the Niger Delta by oil exploration. The Oil Minerals Producing Areas Development Commission (OMPADEC), the most notable official response to the crisis and contradictions of

the Niger Delta was established by Babangidaâ&#x20AC;&#x2122;s government in 1992. It was later rechristened NDDC in 2000. In the area of higher education, the Babangida government among others established the University of Abuja, Federal Universities of Agriculture in Makurdi and Abeukuta, Federal Universities of Technology at Bauchi and Yola, four technical Colleges of Education at Asaba, Bichi, Omoku and Potiskum, built and transformed the former Anambra State University of Technology Awka. The movement of Ahmadu Bello University Teaching Hospital to its permanent site in Shika was initiated by him and substantial work done by his government. I can also list a few out of the many uncountable road projects, carried out by President Babangidaâ&#x20AC;&#x2122;s government: The dualization of Kano- Zaria- Kaduna road; dualization of Kaduna-Abuja road; dualization of Ibadan-Ife road Oyo/Osun States; dualization of WarriBenin road, Delta State; Nembe-Brass Road, Kolo-Nembe Road, Yenagoa-Kala Road all in Bayelsa; Bori-Bonny Road, Port HarcourtDegema-Buguma Road, all in Rivers State; Otukpo-Oju Road, Benue State; Bali-Jambari Road and Access Road to Gembu-Mambilla Plateau, Taraba State; Mokwa-Tegina Road Niger State; Lafia-Doma Road Nasarawa State; Rehabilitation of Calabar-Ikamga-Abag road, etc. All these and more infrastructure were provided by the Babangida administration when it was in office between 1985 and1993. Still, vice- president Osinbajo says the IBB/Abacha administration (1990-1998) realized $199.8billion with no infrastructure to show for it. This is rather strange. In his haste to castigate the IBB/Abacha years, Osinbajo does not even spare his boss, President Muhammadu Buhari. It is on record that General Abacha as the Head of State between 1994 and 1998 set up the Petroleum Trust Fund with General Buhari (rtd.) as Executive Chairman. The mandate of the fund was to provide the infrastructure that Osinbajo is yelling about today. Emmanuel Yawe, former Managing Director of Gongola Press Ltd., wrote from Abuja

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EDITORIAL THE CORRUPTION CONUNDRUM The Carnegie report provides lessons on the war against corruption

recent report of the Carnegie Endowment for International Peace singled out corruption as the most important obstacle preventing Nigeria from achieving its enormous potential. Titled â&#x20AC;&#x153;A New Taxonomy for Corruption in Nigeriaâ&#x20AC;?, the report said that corruption weakens the social contract between the government and the people, stymies development and causes billions of dollars to be stolen every year from the countryâ&#x20AC;&#x2122;s economy. What is particularly worrying is that this abuse is not only at all levels of government, it has been extended to virtually all critical institutions in the country, including those in the private sector. What is particularly instructive about the report is the claim that members of both the ruling All Progressives Congress (APC) and the main opposition Peoples Democratic Party (PDP) use political power to steal public resources. â&#x20AC;&#x153;Both are almost identically structured, non-ideological organisations. Both rely on misappropriated public funds to ďŹ nance election campaigns. Neither values internal party democracy, allowing money and high-level interference to corrupt candidate selection A WAR AGAINST processes,â&#x20AC;? the report said. CORRUPTION THAT Given the revelation IS GUIDED ONLY BY that the line between A BLANKET NOTION APC and PDP is very OF NAMING AND thin, this report should SHAMING OPPOSITION change the partisan POLITICIANS WILL manner of ďŹ ghting ULTIMATELY EXHAUST corruption by this administration if any ITS AMMUNITION AND appreciable progress RECORD EPHEMERAL is to be made. Just SUCCESS recently, the Economic and Financial Crimes Commission (EFCC) froze the accounts of two states â&#x20AC;&#x201C; Benue and Akwa Ibom based on what many believe to be partisan political considerations. It took a public outcry before the restrictions on the accounts of both states were lifted. The accounts of the Benue State government were obviously put on ice because the State Governor Samuel Ortom defected from the APC to the PDP.

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Why, many wondered, didnâ&#x20AC;&#x2122;t EFCC vet the stateâ&#x20AC;&#x2122;s security votes when Ortom was in the APC? And why did Akwa Ibom come under the searchlights immediately Godswill Akpabio, Senate (PDP) minority leader and former governor of the state defected to the APC? Why is it that EFCC is only interested in states controlled by the opposition, such that it would gloat after the PDP candidate was defeated by the APC candidate in Ekiti State after the June election? As we have said on this page severally, there is a world of difference between ďŹ ghting corruption and peddling sensational information with political motives. The drama and media showmanship that Nigerians have over the years witnessed in the name of ďŹ ghting graft will worsen corruption in the future. Yet, it is a given that where leadership misdeeds anticipate no consequences, democratic governance can only abide by rules made by autocrats and enforced by a rogue judiciary. We have at different times challenged the current administration that ďŹ ghting corruption requires some underlying doctrines that will inform the battle plans with the overall objective of carrying the people along. But with a campaign that has no foundation in public morality or ethical good governance beyond empty propaganda, ďŹ ghting corruption has been reduced to the arrest of some opposition politicians and telling tales. What the operatives of this administration ignore is the link between distortion of values and abuse of, or general disregard for, extant rules. Yet once rules are ignored, all templates lose their validity, submitting to collusions and arbitrary exercise of discretion that is nothing but grand corruption that has become very pervasive in the country, regardless of what ofďŹ cials are saying. Indeed, as we have consistently argued, a war against corruption that is guided only by a blanket notion of naming and shaming opposition politicians will ultimately exhaust its ammunition and record ephemeral success. Fighting corruption in an environment such as ours goes beyond the sensational arrest of persons to putting in place structures that will lead to trials and convictions of those that are guilty without tarnishing the reputation of innocent citizens.

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

JOHN MCCAIN: THE MAVERICK THAT MADE SENSE

ohn McCain, maverick politician extraodinaire. What direct relevance does the life and death of this quintessential American hero have for our fatherland, Nigeria? Senator John McCain lived a life of unalloyed service to his nation. As a naval officer during the senseless war of Vietnam, just about the only war the US have ever lost so woefully, he spent five excruciating years in Vietnam as a prisoner, when his fighter jet was shot down. His career in the navy should not have come as a surprise being a son and a grandson of highly celebrated US Navy admirals. His father and grandfather enjoy the distinguished honour of being the first father and son to attain the rank of four-star admiral. Even while on his death bed, awaiting the call which inevitably beckons on every mortal, John McCain turned his ever sapping energy to â&#x20AC;&#x153;put pen to paperâ&#x20AC;?. He expressed just how privileged he had been to serve his country for over 60 years. Privileged to fight for his people both in the time of war and in the time of peace. He then made an instructive reference to the fallibility of man when he admitted he had also made some mistakes. Unlike how we often perceive such gestures on this side of the world, such a confession does not in the slightest diminish us or portray us as weak but only serves to remind us of the great heights we can attain in life in spite of our shortcomings; and not because we donâ&#x20AC;&#x2122;t have any. Ironically, here lies our strength. In his farewell letter to a grateful nation, he went on to admonish just how he felt his great nation should move forward, even when it was painfully obvious he would

neither see nor share in the benefit his advice may eventually result in. Such was his love for his country. His primary concern was not if the tens of properties and sundry assets his position as a distinguished Senator had â&#x20AC;&#x153;affordedâ&#x20AC;? him to acquire will suffice for his children and multiple generations of McCains yet unborn, even at the detriment of equally deserving countrymen. His burning desire was always to see his country, already arguably the greatest nation, occupying such a uniquely dominant space in the greatest time in history, fulfill its potential. This great patriot painstakingly prepared even the most minute detail of his final farewell rites, putting partisan politics aside by requesting that both the Republican leader(his political party) and the Democratic leader in the Senate, jointly lay the wreath on his coffin, hereby breaking with past protocol. Republican Senate leader, Senator Mitch McConnell, while delivering his most moving speech at the memorial service in honour of Senator McCain held at Capitol Hill, revealed the very essence of the man when he said, â&#x20AC;&#x153;depending on the issue, you knew John would either be your staunchest ally or your most stubborn opponent.â&#x20AC;? What does this tell us? He fought on issues and he was guided by his jealously protected principles. His moral compass dictated which side of the argument he would perch on. He didnâ&#x20AC;&#x2122;t allow himself to be imprisoned by a primitive self-serving sense of party loyalty. No â&#x20AC;&#x153;family affairâ&#x20AC;? for him but as should be the attitude of any true

servant, let alone representative of the people, he perpetually recognised his responsibility to put the interest of the people first; not himself, not his party. Resulting in his monicker, the maverick, he would vehemently disagree with his own party if he felt it was in the best interest of his nation to do so. No, the issues were never once reported to border on how to ensure the purportedly gargantuan take home pay of National Assembly members remain a national secret; even when the economy was on a free fall, resulting in the nation quite unabashedly boasting of the largest number of extreme poor of any country in the world now. At least as was told us by Mrs Theresa May, the British Prime Minister during her recent visit to Nigeria. Quite remarkably, 87 million Nigerians out of a total population of 198 million now live on less than $1.25 a day. At todayâ&#x20AC;&#x2122;s rate of exchange, that amounts to roughly N450 per day or even more poignantly, less than N14,000 per month. Still N4000 shy of the stipulated national minimum wage, a minimum that most state governments are still struggling to pay. John McCain was not foolish enough to argue about hiding any such information as any Tom, Dick or Harry in the US has unfettered access to such information by simply employing the services of Google via their smart phone. As we should. His joy? Only to serve the best interest of the people. Oladapo Akande, Lagos

T H I S D AY Ë¾ Í¯Í¯Ë&#x153; Í°Í®Í¯Í¶

T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

T H I S D AY Ëž ÍŻÍŻË&#x153; Í°ÍŽÍŻÍś

FEATURES Bridging the Metering Gap

Group Features Editor: Chiemelie Ezeobi Email chiemelie.ezeobi@thisdaylive.com, 07010510430

Ikeja Electric Plc has accelerated the distribution of prepaid metres in various areas under its jurisdiction, reports Rebecca Ejifoma

or decades, estimated billing had been the practice across Nigeria, until the recent power reform trends which saw, among other changes, the rollout of prepaid meters for better metering of electricity consumption. However, despite the introduction of the new metres, it has been hard for many electricity consumers to access them. The accessibility problem has been a major bane of the new system. While some areas enjoy the gains of the prepaid meter, which is pay-as-you-go, others are not so fortunate, as they are made to pay bills that are estimated, which are often hiked beyond their monthly consumption. It was in a bid to bridge this disparity in metering that Ikeja Electric Plc (IE) initiated an aggressive metering drive in their areas of responsibility. Contrary to claims that there is a deliberate hoarding of meters, the Distribution Company (Disco) says the distribution of prepaid meters even allows them room for remote data access and vending, which in turn contributes significantly to the energy conservation advocacy of IE. Also reputed to be largely tamper-proof, the meters also help them deal with recurrent cases of illegal meter bypass, energy theft and other illegal issues that have plagued them with regard to older and less secure meters that rely on estimated billing.

Promise Kept In line with the promise to carry out aggressive metering, over 85,000 meters were billed to be installed in the first roll out phase, which will take place concurrently across the six Business Units in IEâ&#x20AC;&#x2122;s coverage area. However, the roll out is different from the MAPS roll out agenda under the Nigerian Electricity Regulatory Commission (NERC) Meter Asset Provision Regulation Approval by the federal government, set to commence towards the end of the year. From Apata to Oguntolu, Shipeolu, Bailey Streets and environs in Shomolu area, as well as Lasisi-Oshoja and Ore-Ofe streets in Idimu, among several other areas, have all tasted of the metering project. In July this year, IE commenced the distribution of single and three phase prepaid meters across its network. This was in fulfilment of its promise to ensure that its customers are metered, thereby reducing the incidence of estimated billing. Thus, the first batch of meters was delivered by Mojec International Ltd, MBH Power and Beacon Power Services Ltd. Some of the residents metered commended the process. According to them, it has not just put an end to estimated billing, it has also minimised disagreement between the power firm and the people in the communities, and encouraged energy efficiency.

L-R: Chairman, Association of Shomolu Printers Cooperative, Chief Mark Anthony; Business Manager Shomolu Business Unit of Ikeja Electric, Engr. Basanya TaoďŹ k; CDC Chairman Shomolu, Oduguwa Adedapo, and Head Power Allocation Team Ikeja Electric, Adewale Atobatele, during an engagement with Shomolu CDC/CDA executive and Association of printers executives on the deployment of meters to Shomolu communities and environs in Lagos

exercise across its network, customers of IE have commended the leading electricity distribution company for redeeming its promise to bridge the metering gap, while also expressing delight at the improvement in power supply within its area of coverage. Chairman of Shomolu Community Development Committee (CDC), Mr. Oduguwa Adedapo, made the commendation during a recent on-the-site visit by IE to Shomolu. According to Adedapo, IE has embarked on massive deployment of meters to Shomolu and its environs. He said the exercise was a laudable achievement. He further urged IE to ensure that all houses in the area were provided with prepaid meters. Adedapo said, â&#x20AC;&#x153;While commending the company, I also want to advise the company to ensure that migration of customers to the prepayment metering is made a lot easier by looking into the contentious issues relating to outstanding electricity bills. This will enable customers migrate immediately to recharge after exhausting the initial token in the meter." In a similar vein, the president of Co-operative Society of the Association

Metering Process Given that the distribution of metre is free, an installation cost may however apply. In one of their stakeholders summit, Head, I.E. Corporate Communications, Felix Ofulue, had explained that customers would receive meters in line with a schedule of distribution that was feeder based, after they had filled out the application form which is available at any IEâ&#x20AC;&#x2122;s offices and the official website at www.ikejaelectric.com. According to him, once the customer's application have been approved, their locations surveyed, the next thing is to carry out relevant technical assessments before the technical partners overseeing each specific location will handle installation of the meters.

Commendation In reaction to the on-going metering

Prepaid meter, the way to go

of Printers in Shomolu, Chief Babajide Mark Anthony, expressed joy at the new development and confirmed that the association was ready to cooperate with IE to ensure smooth operation. He advised the Disco to fast-track the installation of meters and also attend to minor complaints in time in order to build more trust and instil confidence in the customers.

Equality in Roll-out Plan

Ikeja Electric will sustain the metering exercise in an equitable manner such that all category of customers in its network that are yet to be metered, will deďŹ nitely beneďŹ t from the roll out plan

IEâ&#x20AC;&#x2122;s Head of Corporate Communications, Felix Ofulue, reiterated the Discoâ&#x20AC;&#x2122;s position that it will sustain the metering exercise in an equitable manner such that all categories of customers in IEâ&#x20AC;&#x2122;s network that are yet to be metered will definitely benefit from the roll out plan.

Asset Compromise However, the company spokesman expressed concern about the trend of asset compromise being witnessed in some of the areas that have already been metered. According to him, â&#x20AC;&#x153;Our records reveal that a lot of customers who were recently metered, especially in Shomolu and environs, have not vended or purchased units on their meters, several weeks after exhausting the initial token. Typically, this

is the process that should follow after the complimentary units on the prepaid meter have been exhausted. This is a worrisome." He called on metered customers to resist the urge to bypass meters, saying they should rather manage their energy consumption prudently. He also warned that IE would apply the authorised sanctions against any customer who engaged in the act of meter bypassing.

Dialogue Responding to comments relating to improved supply across its network coverage area, Ofulue pointed out that IE customers will continue to experience improvements in supply. But he pleaded with customers to ensure that they settle their bills promptly. He called on customers who had queries about their bills to adopt dialogue, rather than aggression as a resolution channel, so all disputes could be settled amicably. Ofulue advised customers to channel their complaints concerning metering through customercare@ikejaelectric.com, or call IE Customer Care Hotlines: 01 7000250, 01-4483900, 07000225543 for immediate intervention.

T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

WEEKLY PULL-OUT

11.09.2018

‘OUR CRIMINAL JUSTICE SYSTEM LACKS COORDINATION’

Dr. Uju Agomoh Ag

2/DASHBOARD

11.09.2018

Appeal Dismissed for Want of Diligent Prosecution: Finality of PAGE 4

Flood: Submerged Kogi High Court to be Relocated Kogi Chief Judge PAGE 5

Ubani: NBA Requires a lot of Reforms to Run Eﬃciently PAGE 5

QUOTABLES ‘We have an illegitimate instrument, being passed off as the Constitution of Nigeria.’ – Professor Akin Oyebode, Professor of International Law & Jurisprudence

SERAP Holds Public Hearing on Using FOI Act to Curb Corruption in Health, Education, Water Sectors, today PAGE 6

‘Policing of the country, cannot be done centrally. Nigeria is too big, to have the Police regulated from Abuja. Every State, every Local Government, every Institution, will have to be part and parcel of the policing of the country. There is no Federation in the world, where you have only one Central Police Force.’ – Femi Falana, SAN, Human Rights Lawyer and Activist

‘A Good Lawyer Marries Technology, and Thinks outside the Box’ PAGE 6

COLUMNISTS DR. MIKE OZEKHOME, SAN, OFR, FCIARB, PH.D, LL.D Constitutional Democracy, means a system of government, in which political and governmental power, is deﬁned, limited and shared by a grundnorm called the Constitution, which provides inbuilt checks and balances. This column seeks to ﬁercely discuss constitutional, legal and political issues, with a view to strengthening, deepening and widening the plenitude and amplitude of democracy and good governance, without fear or favour. The writer of this column, Dr. Mike Ozekhome, SAN, is a Constitutional Lawyer, Human Rights Activist, Pro-Democracy Campaigner, Notary Public and Motivational Speaker. He co-founded the Civil Liberties Organisation (CLO), Nigeria's pioneer human rights league, on October 15,1987, the Universal Defenders of Democracy (UDD), in 1992, and with Chief Gani Fawehinmi and others in 1998, the Joint Action Committee of Nigeria (JACON), to push out the military. In his early days, he lectured at the University of Ife. Dr. Ozekhome is an author of many books. He is also a Special Counsel at the International Criminal Court (ICC), at The Hague.

ABUBAKAR D. SANI Abubakar D. Sani holds a Bachelors degree from the University of Maiduguri, and has been in active private legal practice since he was called to the Nigerian Bar in 1987. He is the Principal of Abubakar D. Sani & Co., which has ofﬁces in Abuja and Kano. " INSIGHT" aims to unravel, analyse and proffer solutions to numerous anomalies in Nigerian law and practice, particularly statutes, vis-a-vis the Constitution, International Treaties and Conventions to which Nigeria is a signatory, Judicial Precedent and other relevant statutes and issues.

ONIKEPO BRAITHWAITE EDITOR JUDE IGBANOI DEPUTY EDITOR AKINWALE AKINTUNDE REPORTER TUNDE BUSARI GROUP HEAD OCHI OGBUAKU II ART DIRECTOR

Still Far from a Country

few days ago, I had a telephone conversation with a younger friend of mine. We were talking about the most popularly and hotly debated topic in Nigeria today, that is, the state of the nation. We were discussing the recently cancelled elections, in Rivers State. He told me that the day of the election, the Police put their Estate on lock down, and prevented them from going out to cast their votes. How could this be? In a democracy? In many countries, if election day falls on a working day, people go to work as usual. Why should Nigeria be any different? Talk less of making us victims of false imprisonment, on election day! I expressed my frustration about that and a lot of other things, and said “I don’t know what is happening in this country”, to which my friend responded, “Do we have a country?” Good question. Origins of a Country The origins/formation of a country, usually starts from tribes/clans choosing to live together, developing into villages and towns, and now in modern times, cities; all within an identifiable geographical space delineated by boundaries, with people living under the same or similar rules. Today, apart from the fact that it is only outside of our country that we identify ourselves as Nigerians, to distinguish ourselves from say Gambians or Ghanaians, within our country, more so than ever before, we identify ourselves by our tribes – Itsekiri, Efik and so on. My point? It is becoming patently obvious by each passing moment, that over 100 years after the amalgamation of the Southern and Northern Protectorates of Nigeria and the Colony of Lagos in 1914, we have not really risen above the origins of the formation of a country. We are still at the

initial stages, or rather we have reverted to the initial stages. Nigeria: A Failed State? As many have asserted, is the failure of Nigeria as a united, successful nation, due to the fact that the key elements required in the formation of a country, that is, the desire, the choice to live together, was absent and lacking in the first place, since we were thrust upon each other, because the British sought to make governance of the Protectorates easier, and not because we actually decided to become one? Or, is this just an expired excuse for failure? Or, is it because, subsequently, as a result of the bad rule which successive governments have subjected us to (present company included), that the result is the retrogression that prevails today? Or is it a combination of all? Today, most of the signs that Nigeria may be well on its way to being a failed State, are apparent. Even if we do not fully qualify to be called a failed State, Nigeria is certainly a dysfunctional, fragile/crisis State. We have weak and failing institutions, little or no public services, very poor infrastructure, internal violence in several parts of the country, for example, the herdsmen crisis in Benue State, and the Boko Haram insurgency in the North East, failure to take advantage of the huge economic potential that the country has, condemnation of most Nigerians to a life of abject poverty (so much so that, many Nigerians are so poor, that they qualify to receive the paltry N5,000, that is, about £10 or $13 a month stipend, ‘government’s benevolence’ for poverty alleviation), steady decline in the standard of living, selfish and greedy elite, political shenanigans, unprecedented levels of corruption, tribalism, nepotism, no law and order (chaos and near anarchy), poor security, unprotected boundaries (for government to claim that those responsible for the herdsmen

Lord Frederick Lugard, Governor-General of Nigeria 1914-1918

crisis are foreigners, is an admittance that it cannot protect our boundaries from marauding outsiders), a government that has little or no respect for the rule of law, different types of constitutional crisis, to mention but a few. Whether the amalgamation was forced or willing, my conclusion is that, all our successive governments could have made a better go of it. The good news however, is, all is not lost! But, time is of the essence, if we do not want this country to sink deeper into the abyss of failure, from which it may be impossible to ascend and be salvaged from. 1999 Constitution: A Military Document The extant Constitution, the 1999 Constitution of the Federal Republic of Nigeria (as amended) (the 1999 Constitution), is certainly not “WE, THE PEOPLE of the Federal Republic of Nigeria; HAVING firmly and solemnly resolved....”, as stated in the preamble to the Constitution. As we all know, the 1999 Constitution is a creation of the military, and not a ‘consensus ad idem’ (meeting of the minds) of the people. It is a somewhat, skewed document. The first step to placing our country on the right path, would be to replace the 1999 Constitution, or at the very least, subject it to some rigorous amendments, especially those aspects of it, which in recent times, have been shown to be very obviously inadequate. The truth of the matter is that, the National Assembly needs to be more up and doing in this regard, as it seems somewhat oblivious of the fact that, it has a monumental role to play in this exercise of rebuilding Nigeria. Take for example, Chapter 2 of the 1999 Constitution, which provides for the Fundamental Objectives and Directive Principles of State Policy, what I might describe as being akin to the elements that determine the formation of a country and how to live together in peace, equality, harmony and progress; it is not exactly justiciable. So, how do you ensure that all the principles of equity, equality, freedom, justice, good government and the welfare of all persons “for the purpose of consolidating the unity of our people”, as stated in the preamble to the Constitution, obtain in Nigeria? By making the Chapter justiciable directly, and not by a Lawyer having to practice some form of legal technicality trickery or brilliance, to surmount the obstacles! That way, there will be accountability to the people by government, and instead of people complaining about things, yielding no positive results from their complaints, they will have a legitimate means to seek redress. During the regime of the despotic General Sani Abacha, the six geopolitical zones were created. The Northern Zone has more States than the Southern Zone. Specifically, while the North West Zone has seven States, other Zones have six States, except the South East Zone which has five. This is an example of inequality; it gives the North West a clear advantage over the other Zones, which is in itself, contrary to the spirit of several provisions of the 1999 Constitution. Unfortunately, Section 8(1) of the Constitution makes it not just an uphill task, but almost impossible, to create a new State (for those who may feel the need to catch up with the seven State Zone), as you need practically everybody in Nigeria to pass a resolution in that regard, when this was not the process that was adopted, when the other States were created (this is not to say, that I think Nigeria needs more States). Essentially, the military did pretty much as it pleased, whether equitable or otherwise. To then imagine that, in a democracy which can only thrive on fairness and justice, we could proceed to build an egalitarian society on such a faulty, inequitable foundation/Constitution, is not just ridiculous, but delusional! Though the blame for this particular issue cannot be placed squarely at the feet of this present government, as this situation existed long before its time, it has gone over and beyond itself, to engender more bitterness that has arisen from this state of affairs, in our people - the very antithesis of building a popular, dispassionate and unprejudiced society. Again, where Section 17(2)(a) of the 1999 Constitution provides that all citizens shall have equality of rights, this government has all but made it clear that, high ranking members of the ruling All Progressives Congress (APC), government officials, and people from certain tribes and of certain religions, may

ONIKEPO BRAITHWAITE

THE ADVOCATE onikepo.braithwaite@thisdaylive.com onikepob@yahoo.com

“TODAY, MOST OF THE SIGNS THAT NIGERIA MAY BE WELL ON ITS WAY TO BEING A FAILED STATE, ARE APPARENT. EVEN IF WE DO NOT FULLY QUALIFY TO BE CALLED A FAILED STATE, NIGERIA IS CERTAINLY A DYSFUNCTIONAL, FRAGILE/CRISIS STATE” have more rights than other Nigerians. The Way Forward The only way forward, to rebuild and transform Nigeria, is good leadership; a leadership that is prepared to make good choices, in the interest of the country as a whole, not as a part. Aside from redrawing our Constitution in a way that captures the desires of majority of Nigerians, Government needs to build strong institutions that transcend tribalism, nepotism and other useless sentiments, which are nothing more than a recipe for mediocrity, failure and disaster. Government needs to be decentralised. It is no secret that, some Governors are rarely in their States, governing. Instead, they have taken up residence in Abuja, with their ‘begging bowls’ and boot-licking, to curry favour with the Presidency, since the money is disbursed from the nation’s capital. How else do you explain a Governor, whose State has consistently topped the list of States that owe workers’ salaries, paying N45 million for the President’s nomination form? Whether or not the Governor chooses to hide behind some organisation, who claimed to have paid for the form! President Buhari came in on three major campaign promises - security, economy and fighting/eradicating corruption - key elements that produce a strong State, if properly tackled. How well has the Administration fared so far? In the area of security, using a country like Afghanistan, a failed State under the Taliban, which harboured Al Quaeda, Nigeria stands accused by many including Amnesty International, of condoning the herdsmen and their killings, going as far as calling the killings ethnic cleansing and genocide. According to Learned Senior Advocate of Nigeria, Robert Clarke, corruption has not diminished since this Administration took over. Even though he asserts that no other government has fought corruption as much as this one, many beg to differ, claiming that the fight is largely ineffective and selective. The economy remains weak, with an unprecedented decline in the standard of living, and a high level of hunger and suffering, for a vast majority of Nigerians. It’s time for government, to re-strategise!

4/LAW REPORT

11.09.2018

Appeal Dismissed for Want of Diligent Prosecution: Finality of

Facts n March, 2013, the Appellants appealed against the judgement of the Court of Appeal delivered on 29th January, 2013. The Record of Appeal was compiled and transmitted to the Supreme Court. The appeal was duly entered in December 2013, a period of nine (9) months in contravention of the provisions of Order 7 Rule 4(1) of the Supreme Court Rules, 1985 (as amended), which enjoins the Registrar of the Court of Appeal to compile and transmit records, within a period of not more than six months from the date of filing the Notice of Appeal. By the extant Rules of the Supreme Court, the Appellants were duty bound to file their Brief of Argument within ten (10) weeks of receipt of the Record of Appeal i.e. 15th March, 2014. The Appellants however, neither filed their Brief(s) of Argument as expected, nor applied for extension of time to do so. Thus, on 18th February, 2015, the Supreme Court sitting in Chambers, suo motu dismissed the appeal for want of diligent prosecution under Order 6 Rule 3(2) of its Rules of Court. After a period of two years and three months following the dismissal of the appeal, precisely on 10th May, 2017, the Appellants filed the present application, seeking inter alia, an Order setting aside the decision of the Court dismissing the appeal; an Order restoring the appeal; and an Order for extension of time to file and serve the Appellants’ Brief of Argument, as well as a deeming Order. In the alternative, they sought the Trinity Prayer, for extension of time to seek leave to appeal, leave to appeal the judgement of the Court of Appeal, and extension of time to appeal the said judgement. Issues for Determination 1. Whether the Supreme Court has jurisdiction to set aside its own judgement, given on grounds of lack of diligent prosecution of appeal. 2. Assuming the Supreme Court has jurisdiction, whether this is an appropriate case, in which the discretion should be exercised in favour of the Appellants. 3. In the alternative, whether this Court has power to grant the trinity prayers sought by the Applicants, as alternative reliefs. Arguments Counsel for the Appellants considered the Order of the Supreme Court dismissing the appeal for want of diligent prosecution pursuant to Order 6 Rule 3(2) of the Supreme Court Rules, as a “Default Judgementn”, given against them for their failure to take a procedural step (filing of Brief of Argument). Relying on the authority of U.T.C. v PAMOTEI (1989) LPELR-3276(SC), he opined that it was not a judgement on the merits given that the legal rights of the parties, either in law or on the facts, were not determined. Counsel submitted that the effect of such Order of Dismissal which was not on the merits is considered in law to be “a mere striking out”. PANALPINA WORLD TRANSPORT NIG. LTD. v J.B. OLANDEEN & ORS. (2010) 4 CLRN 150. Counsel submitted further that, an Order regarded not to be on the merits, is liable to be set aside on the authorities of MOHAMMED V. v HUSSEINI (1998) 14 NWLR (Pt. 584) 108; EDE v MBA (2011) 18 NWLR (Pt. 1278) 236 at 277. It was also the case of the Appellants that, there was no application to the Supreme Court to exercise its powers to dismiss the appeal for want of diligent prosecution, on grounds of failure to file the Appellants’ Brief of Argument within the time allowed by the Rules of Court. Implicit in the position of the Appellants, was the fact that the Supreme Court suo motu dismissed the appeal, without affording the Appellants a hearing before making such decision. Courts Judgement and Rationale Deciding the first issue for determination, the Supreme Court reiterated the importance of adherence to Rules of Court thus - Rules of Court are statutory instruments, deriving their legitimacy and efﬁcacy directly from the Constitution. They are to be obeyed; when they are ﬂouted, the Court cannot remain passive and helpless. It must sanction the non-compliant party, otherwise the purpose of its enactment will be defeated. The party who fails to obey the Rules of Court, must bear the consequences of his failures. OWNERS OF “MV ARABELLA v N.A.I.C. (2008) 4 SC (Pt. 2) 189. The Supreme Court Rules was made by the Chief Justice of Nigeria, pursuant to Section 236 of the 1999 Constitution. Therefore, where some provisions such as Order 6 Rule 5 thereof, set the period for filing briefs as succinct statement of the party’s argument in the appeal; it serves dual

Hon. Ejembi Eko, JSC

In the Supreme Court of Nigeria Holden at Abuja On Friday, the 11th day of May, 2018 Before Their Lordships Olabode Rhodes-Vivour Olukayode Ariwoola Musa Dattijo Muhammad John Inyang Okoro Amiru Sanusi Amina Adamu Augie Ejembi Eko Justices, Supreme Court SC.763/2013 Between 1. Securities and Exchange Commission 2. Administrative Proceedings Committee of the Securities and Exchange Commission 3. Amos I. Azi (Secretary Administrative Proceedings Committee) ..........Appellants/Applicants And Christopher Okeke ............Respondent (Lead Judgement delivered by Hon. Ejembi Eko, JSC)

“.... AN APPEAL DISMISSED AS IN THIS INSTANCE, CANNOT BE RELISTED OR RESTORED TO THE CAUSE LIST. THE ORDER DISMISSING AN APPEAL FOR FAILURE TO FILE BRIEF OF ARGUMENT, IS AN ORDER ON THE MERITS, AND THE SUPREME COURT BY A DINT OF ORDER 6 RULE 16, SUPREME COURT RULES, 1985 (AS AMENDED), CANNOT REVIEW ITS OWN JUDGEMENT OR ORDER, EXCEPT UNDER THE “SLIP RULE” OR UNDER ITS INHERENT POWERS TO SET ASIDE ITS JUDGEMENT OR ORDER, THAT IS MANIFESTLY A NULLITY”

purpose in the appeal – an opportunity to present argument in the appeal, as well as setting a time for the presentation of the argument in the appeal. Section 36(1) of the Constitution of the Federal Republic of Nigeria, 1999 prescribes that a party in litigation be given fair hearing, which includes an opportunity to present his case within a reasonable time. “For Courts of law, time is very important. Because litigants go to Court expecting quick results from fair and expeditious determination of their disputes, so it is imperative for the Court to be in control of time and to manage it prudently, for the purpose of determination of matters before them within a reasonable time.” BRITISH AMERICAN TOBACCO (INVESTMENT) LTD v A-G OGUN STATE (2011) LPELR-3891(CA) per IKYEGH, JCA. The Court addressed the implicit allegation by the Appellants of denial of fair hearing, stating that Order 6 Rule 5(1) enjoins the Appellant to file its brief within ten weeks of receipt of the Record of Appeal. The Record was transmitted on 31st December, 2013 and the Appellant had up to 15th March, 2014 to file its Brief of Argument, but it failed to do so until the appeal was dismissed on 18th February, 2015. A party who has been afforded an opportunity to present a succinct statement of his argument in the appeal, but who fails to utilise the opportunity, cannot be heard to complain that he was denied his right to fair hearing. OBA JACOB OYEYIPO & ANOR. v CHIEF J.O. OYINLOYE (1987) 1 NWLR (Pt. 50) 356. On the nature and effect of the Order made by the Supreme Court when it dismissed the appeal for want of diligent prosecution, Their Lordships held that Order 6 Rule 3(2) of the Supreme Court Rules, provides sanction against an Appellant who failed, neglected or refused to file his Brief of Argument within 10 weeks of receipt of the Record of Appeal as provided for in Order 6 Rule 5(1). The sanction under this provision is distinct from that provided for under Order 6 Rule 9, which gives the Respondent an opportunity to apply to the Court for the appeal to be struck out where the Appellant fails to file and serve his brief within the time stipulated in Rule 5. Order 6 Rule 3(2) deals with a completely different situation, where the initiative is taken by the Court itself. This provision relates to where the Appellant is in default, and neither party makes any move, the Court may dismiss the appeal for want of prosecution. The Court will normally take the initiative where the appeal has become dormant and the parties have lost interest in it, and there is need to decongest the cause list of such deadwoods. Further, where an appeal is dismissed under Rule 3(2) of Order 6, the Supreme Court does not have jurisdiction to set aside that Order and restore the appeal to the cause list. CHIME v UDE (1996) 7 NWLR (Pt. 461) 379. By the extant Rules of the Supreme Court, an appeal dismissed as in this instance, cannot be relisted or restored to the cause list. The Order dismissing an appeal for failure to ﬁle Brief of Argument, is an Order on the merits and the Supreme Court by a dint of Order 6 Rule 16, Supreme Court Rules, 1985 (as amended), cannot review its own Judgement or Order, except under the “Slip Rule” or under its inherent powers to set aside its Judgement or Order that is manifestly a nullity - ALLI v AYINDE (2010), All FWLR, (Pt. 540) 1315. It follows that the submission of the Appellants that the judgement was not on the merits, but a procedural step which can be set aside, does not address the effect of Order 6 Rule 3(2) vis-à-vis Order 8 Rule 16 of the Supreme Court Rules, which provides for instances when an Order of the Court can be varied. The Appellants did not bring the present application under the “Slip Rule” or any of the exceptions, for variation under Order 8 Rule 16. It is also not the prayer of the Appellants that the Court should exercise its inherent powers to set aside the Oder for being a nullity, made ultra vires or without jurisdiction. MENAKAYA v MENAKAYA (2001) 16 NWLR (Pt. 738) 203. Based on the foregoing, Their Lordships reasoned that there was no cause shown to grant the application sought by the Appellants. Application Refused. Representation: Fidelis Oditah, QC, SAN with Onyeka Enunwa, Esq. for the Applicants Olumide Akinnimi, Esq. with Oluwaseun Senawa, Esq. and T.B. Daniel-Kalio, Esq.. for the Respondent. Reported by Optimum Publishers Limited (Publishers of Nigerian Monthly Law Reports (NMLR))

11.09.2018

NEWS/5

Kogi CJ Inaugurates Committee on Criminal Justice Yekini Jimoh in Lokoja

State High Court at Koton-Karfe Kogi State ﬂooded by River Niger

Flood: Submerged Kogi High Court to be Relocated - Kogi Chief Judge Yekini Jimoh in Lokoja The Chief Judge of Kogi State, Honourable Justice Nasir Ajanah, has said that the submerged Koton-Karfe High Court Complex, will to be relocated to avoid the perennial flooding and the attendant challenges in administration of justice. He made this known, during on the spot assessment of the extent of damage on the submerged complex. He said the relocation was the only viable alternative, to arrest the perennial breaks in the administration of criminal justice in the area. "The busiest prison yard in the State is located in this

town. So, it is important that we relocate the court, from here to another location within the town. "That is the most important thing to do now, because this is a very busy place", he said. Ajanah said the cost of putting up a new complex for the High Court and the Chief Magistrate Court in Koton-Karfe, would be included in the State supplementary budget, and hoped that it would be approved and released. At the Palace of the Ohimege of Koton-Karfe, Alhaji Abdulrazaq IsahKoto, the Chief Judge reiterated the need to relocate

the court, and appealed to the traditional ruler to allocate another plot of land, for the construction of a new complex. He said that it was the community that allocated the land for the submerged complex, without knowing that the area was prone to flood. Responding, the paramount ruler expressed the community's regrets over the unfortunate hiccups arising from the natural disaster, and promised that land would be sought and allocated within the next one week. Isah-Koto however, appealed to the Chief Judge

to establish smaller courts, especially around the new Medium Security Prison in the area, to take care of litigation arising from the riverine communities. The Registrar of the Court, Mr Aliyu Musa, while speaking with newsmen on the matter, said the staff resumed work Monday Morning, September 3, to meet a flooded complex. Musa said though the flood had been a recurring perennial phenomenon from 2012, weakening the seven-year old structure on a yearly basis, this year's onslaught was higher and more devastating.

The Chief Judge of Kogi State, Honourable Justice Nasir Ajanah, recently inaugurated a Committee for the Administration of Criminal Justice Law (ACJL) in the State. The inauguration of the ACJL, took place at the High Court Complex in Lokoja. He noted that, he had earlier hinted stakeholders of the constitution of the Committee in their previous meetings. According to the Chief Judge, the enactment of the Kogi State Administration of Criminal Justice Law of 2017, has brought about a change in the dynamics of criminal justice administration in the State. Justice Ajanah stressed that, the overriding influence of the law, is to promote efficient management of the promotion of criminal justice institution, speedy dispensation of

Ubani: NBA Requires a lot of Reforms to Run Efﬁciently Akinwale Akintunde The Immediate Past 2nd Vice President of the Nigerian Bar Association (NBA), Mr. Monday Ubani, has said that the

A2J and Avocats Sans Frontières File Suit Challenging Constitutionality of the Mandatory Death Penalty Jude Igbanoi Access to Justice (A2J) and Avocats Sans Frontières France (Lawyers Without Borders France), have filed a public interest lawsuit against the Attorney-General of the Federation, challenging the constitutionality of the mandatory death penalty. In the Originating Summons, they are asking the High Court of the Federal Capital Territory, to determine whether Section 1(2) of Robbery and Firearms Act, is consistent with the 1999 Constitution. The provision prescribes the mandatory death penalty, for armed robbery. A2J and Avocats Sans Frontières France, will contend that the provision, broadly speaking, violates due process safeguards in the Constitution. Mandatory death penalty provisions, account for most death sentences in Nigeria. In the locus classicus case of Unuoha Kalu v The State, the Supreme Court

upheld the constitutionality of the death penalty in Nigeria, having found that the right to life is not absolute under the Nigerian Constitution. In this lawsuit, however, the Plaintiffs want the court to clarify when a judicial decision to impose the death penalty may be considered unconstitutional, or when a law that requires the imposition of the penalty may be deemed unconstitutional. These questions were neither raised nor determined in the Kalu case. If they succeed, the lawsuit would prompt a review of sentencing jurisprudence in Nigeria, and, as regards the use of the death penalty, annul mandatory death penalty provisions. The Plaintiffs hope that this case, will give courts a greater role in determining when the death penalty can be imposed for capital offences. But, beyond that, however, the lawsuit could expand our jurisprudence, on the degree to which punishment can be allowed to invade

constitutionally protected fundamental rights in Nigeria. This would be an important watershed in Nigeria, one that the Plaintiffs hope would make punishments more sensitive to distinctions in offence gravity, and moral blameworthiness. Generally, there is need for sentencing reforms in Nigeria, and this lawsuit may be one step in that direction. Penalty has evolved, in a manner that fails to ensure relative proportionality within the same, or between different genres of crime. Under the Robbery and Firearms Act, for example, an armed robber will be sentenced to death for holding a lethal weapon during or immediately after a heist, even if he did not “use” it. The Judge lacks discretion, to vary the sentence. Under Terrorism (Prevention) Act as amended, however, the maximum penalty that a Judge can impose for committing, facilitating,

assisting or inciting terrorist acts, is a death sentence. The Judge has the discretion, to impose a lesser sentence, depending on the circumstances. Although both laws deal with crimes that have similar potentially fatal consequences, their approaches to penal severity, are considerably different. The difference becomes exacerbated, when it is considered that murdering an internationally protected person attracts a life sentence, under the Terrorism Act. Under the Criminal or Penal Code, murder attracts the death sentence. There are other instances of inconsistencies, in how our criminal law approaches sentencing. Take for example, criminal misappropriation and theft. Both are crimes against property, but the privileged or whitecollared thief who misappropriates billions of public funds, gets a maximum two-year sentence under the Penal Code, while the petty

justice, protection of the society from crime, and protection of the rights and interests of suspects, defenders and victims. “It’s expedient and imperative, to ensure that criminal matters are speedily dealt with, to drastically reduce and decongest the prisons. "It’s to also ensure that, persons awaiting trials and not detained in prison custody, a quarterly report should reach the Governor to keep him abreast about the development towards improved criminal justice delivery in the State”, Ajanah maintained. The Committee members include Justice Ajanah, Chief Judge, Chairman, Justice H.A. Olusiyi, H.E. Yusuf, L.N. Animoku, and ACP Johnson Ademola, representative of the Police. Others are Gankon Stephen, Prison Controller, Siaka Odege, Chairman Okene NBA, Leonard Obiji, Christiana Adejumo, Chairperson, FIDA.

thief gets a maximum five-year sentence, for stealing under the same Code. These differences, engender wide inequalities in sentencing. Punishments are either too severe or too lenient, and do not always fit the crime. Nigeria needs to overhaul its sentencing system. For Access to Justice and Avocats Sans Frontières France, the lawsuit is one frontier in addressing these inequalities. It represents an effort to promote “justice” in the sentencing system, so that sentences do not continue to reproduce and mirror the social and legal injustices that have led to the commission of many of the crimes, in the first place.A Human Rights Advocacy Group, Access to Justice(A2J), has joined numerous other Nigerians, to fault the statement by President Muhammadu Buhari, subordinating rule of law to national security.

Bar Association with over 120 branches all over the country, is a complex institution and requires a lot of reforms to run it efficiently. Ubani said presently, the NBA Constitution has made it the President and the General Secretary's Affairs, and where you have these two persons as wrong individuals; the body will be in a total mess. He disclosed this, in his bowing out message titled, ‘Ubani and Others Bow Out of Office in NBA’. Ubani, who is also the former Chairman of NBA Ikeja, stressed the need for a total reform in the Association. “NBA with over 120 branches all over the country, is a complex institution, and requires a lot of reforms to run it efficiently. “Presently the constitution of NBA has made it the President and the General Secretary's affairs, and where you have these two persons as wrong individuals, the Body will be in a total mess. “Having observed these lapses, I will push for a total reform, especially with the new opportunity now given to to the membership, to look into the constitution in a comprehensive manner. “The first intervention every member should be interested in, in order to save the Association, CONTINUED ON PAGE 6

CON

11.09.2018

SERAP Holds Public Hearing on Using FOI Act to Curb Corruption in Health, Education, Water Sectors, today Akinwale Akintunde Socio-Economic Rights and Accountability Project (SERAP), will today hold a public hearing on building the capacity of Citizens, on the use of the Freedom of

Information Act in Promoting Transparency and Accountability in the Health, Education and Water Sectors. According to a statement signed by Adewale Timothy, Deputy Director of the Human Rights Advocacy Group, the

public hearing holding is expected to bring together anti-corruption agencies, Lawyers, and other stakeholders and residents, who are directly or indirectly affected by bad delivery of services in the Health, Education and Water

Lagos High Court Resumes from Long Vacation Akinwale Akintunde

The High Court of Lagos State will resume tomorrow, September 12, from the year’s long vacation, which commenced on June 16, 2018. The commencement was made

known via a notice signed by the Chief Judge of the State, and published in the State’s High Court premises. According to the notice, pursuant to the relevant laws, some vacation Judges were however, appointed to

handle certain urgent cases during the vacation period, in the judicial divisions of Ikeja and Lagos, respectively. With the end of vacation, the 2018/2019 session commences tomorrow, September 12, 2018.

UBANI: NBA REQUIRES A LOT OF REFORMS TO RUN EFFICIENTLY CONTINUED FROM PAGE 5 is the Electoral Process. The present procedure is faulty, and susceptible to manipulation and fraud. 2016 and 2018 elections have produced multiple cases in court, and no matter how we want to rationalise it or vilify those who have gone to court to seek redress, the present electoral system is faulty, and

needs urgent review and redress from the leadership and membership. Our constitution prescribes E-Voting and not I-Voting. “There is a difference between Electronic Voting and Internet Voting, which is the one we have employed two times, with its attendant hitches

and terrible glitches. I will post an article below on the difference between the two. “I thank God the Almighty for all the travelling mercies and protection for all the two years I was in the office, and we pray that the new leadership will take the Bar to another higher and better level”, he added.

Sectors in Nigeria. The Public Hearing, which will hold at the CITIHEIGHT Hotel, Opebi Sheraton, is also aimed at sensitising participants on how they can deploy the veritable tool of the Freedom of Information Act, in promoting transparency and accountability in these Sectors in Nigeria. Expected stakeholders include the Trade Unions, Market Women, Taxi Drivers Association, Student Associations, Landlord Associations, Artisans, Hawkers without weight and measuring instruments, Spare parts dealers, and Vulcanisers, and other Nigerian citizens and residents. SERAP is a non-profit, nonpartisan, legal and advocacy organisation, devoted to promoting transparency, accountability and respect for socio-economic rights in Nigeria. SERAP received the Wole Soyinka Anti-Corruption Defender Award, in 2014. It has also been nominated for, the UN Civil Society Award and Ford Foundation’s Jubilee Transparency Award. SERAP serves as one of two Sub-Saharan African civil society representatives on the UNCAC Coalition, a global anticorruption network of over 310 civil society organisations (CSOs), in over 100 countries.

Legal Personality of the Week Onyekachi Joseph Umah

‘A Good Lawyer Marries Technology, and Thinks outside the Box’ My name is Onyekachi Joseph Umah. I am a husband, private legal practitioner and arbitrator, with experience in intellectual property, transaction and regulation advisory, corporate, commercial, investment law and energy law, as well as litigation and arbitration arising from them. I am member of the Chartered Institute of Arbitrators (UK) and a Certified Conflict Management Practitioner. Amongst others, I have a certificate in Law of Contract from a program of Harvard University, a certificate in International Environmental Negotiation from United Nations Institute for Training and Research, Geneva, and recently, a certificate in Conflict Management from United States Institute of Peace, Washington, D.C., as well as a Master of Laws degree from University of Jos. I am the Managing Partner of law firm; Bezaleel Chambers International, and the founding President of a law awareness platform known as LearnNigerianLaws.com, which promotes awareness and understanding of laws of Nigeria (#SabiLaw) and offers free daily law tips (#DailyLawTips) across Nigeria. I am the convener of the Sabi Law Lecture Series (#SabiLawLectures), through which I travel around Nigeria delivering free law awareness lectures, and increasing access to legal information. I have written over fifty articles on law, with a desire to enlighten the public. I am presently serving as the Assistant Secretary of the NBA Capital Bar, Abuja after serving as Chairman of Young Lawyers Forum. I am a member of the Rotary Club of Abuja, Metro (RCAM), District 9125. I reside in Abuja with my awesome wife and an energetic boerboel dog. I like basketball and I play martial art (taekwando). Have you had any challenges in your career as a Lawyer, and if so, what were the main challenges? Yes, I have had challenges in my career as a lawyer. Upon graduation and my call to the Nigerian bar, people felt I was just too young

to me over criminal investigation. The new client had an invitation from State Security Services (SSS), and engaged my services to defend him. When we got to the command of SSS, I represented my client very well, but it was obvious the operatives of SSS were not comfortable with my presence. In swift swing, I was threatened by operatives of SSS to exit their office, or be beaten up and shot in the presence of my client. As I opposed them, tension grew and my client got scared, to the extent he pleaded I exit the Command .

Onyekachi Joseph Umah

to be a Lawyer. I recall going for a meeting to see a certain General Overseer of a popular church in Abuja, on behalf of a learned senior; the General Overseer just couldn’t believe I was already a Lawyer. Well, when I finished my presentation, the General Overseer immediately called my senior and poured a lot of accolades on me, and also mentioned that I looked too young and have no beard. Another challenge was getting briefs. I kept asking a lot of senior Lawyers how to get clients and retain them within the Rules of Professional Conduct, since such was never taught in the Law School and University faculties. Then, there was very little legal materials on the internet, and that caused limited access to legal information and delay in research. What was your worst day as a Lawyer? I once had a client I defended well in a civil suit, who recommended a new client

What was your most memorable experience as a Lawyer? I have a lot. In 2016, aside my law practice, I started promoting awareness on laws and rights of Nigerians via LearnNigerianlaws. com and the #SabiLawLectureSeries. In one of my lectures on August 2017, I spoke to the Catholic Women Organisation on legal marriage in Nigeria as it affects their unions, spouses, children and inheritance. When the light of understanding came to them, their expression of joy was unprecedented, and their appreciation knew no bounds. It was an awesome experience speaking to very elderly women, enlightening and empowering them and their families, through my law awareness program. Who has been most inﬂuential in your life? I have learnt a lot from a lot of great men starting from my father; Dr. Fidelis N. Umah. He taught me to read, question status quo, and have an unending quest for knowledge. As a practicing medical doctor, he still squeezed out time to teach me English, Mathematics, Writing, Sciences and even Latin, ahead of my mates in school. He was a perfect gentleman with high morals, and his lifestyle was my first school. Why did you become a Lawyer? I was that boy that talked too much, with a

high sense of on the spot creativity. I narrated movies I never watched to my classmates, and they would listen with rapt attention for as long as my mouth was open. So, literature was part of me, and my quest to know my rights and read the Constitution of Nigeria as a student, got me closer to law. I became a Lawyer, to know my rights and duties, protect them, then defend and enlighten others on same. What would be your advice to anyone wanting a career in Law? Law is for hard and smart workers. If you don’t have passion for listening, logic, reading, writing and patience for details, then a career in law is not for you. If you want to graduate and immediately own a Lamborghini, close from work by 4pm everyday, stay away from books on weekends and wear every thing that trends, then kindly stay away from a career in law. A career in law needs your time, attention, good health, supportive spouse, patience, hard work, smart work, networking, good leadership, persistency, creativity, international exposure and high ethics. If you must be a Lawyer, be a good one, have quest for knowledge, marry technology, and think outside the box, to create a niche for yourself. If you had not become a Lawyer, what career would you have chosen? Unfortunately, I cannot imagine any other profession other than law practice. Well, thinking about this now that I am answering this question, maybe I would have become an Entertainer, because of my love for creativity and literature. Where do you see yourself in ten years? My passion aside defending and advising clients, is to increase access to legal information through promotion of awareness on laws, rights and duties of Nigerians. I see myself helping more Nigerians to understand their rights, demand for justice everywhere, as well as avoid disputes and promote peaceful co-existence.

11.09.2018

GONE TOO SOON

The BODY OF SENIOR ADVOCATES OF NIGERIA (RIVERS STATE CHAPTER) regret to announce the sudden demise of

EMMANUEL CHINWENWO AGUMA, SAN, KSC. J.P., who was one of us, and until his death, the Honourable Attorney-General and Commissioner of Justice, Rivers State. /L ^PSS MVYL]LY IL YLTLTILYLK HZ VUL VM [OL Ã&#x201E;ULZ[ ([[VYUL`Z .LULYHS VM 9P]LYZ :[H[L /L ^HZ \YIHUL forthright, bold, outspoken, brilliant and hardworking. He was also a former Secretary and Chairman respectively, of the Nigerian Bar Association, Port Harcourt Branch. Our respected and revered Attorney-General & Commissioner of Justice, The Honourable Emmanuel Chinwenwo Aguma, SAN, KSC., Goodnight and Rest in Peace, Learned Silk. May God Almighty bless you, Amen. t 0 $ + 0,0$)" .'3 4"/ %4434 + 1

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11.09.2018

Dr. Uju Agomoh PHOTOS: Godwin Omoigui

‘Our Criminal Justice System Lacks Coordination’ Nigeria is on record, as one of the countries with the worst penal institutions in the world. Statistics over the years, have shown that, the nation’s prisons are not only overcrowded with inmates incarcerated in the most deplorable conditions, Nigeria also has an extremely high number of awaiting trial inmates. Interventions from civil society organisations and legal aid institutions, have been poorly funded and inadequate. But, the Executive Director of Prisoners’ Rehabilitation and Welfare Action (PRAWA), Dr. Uju Agomoh, has in the past 24 years, struggled in her quest to see Nigerian prison inmates, exist in more humane conditions, and come out from conﬁnement, reformed. She told Onikepo Braithwaite and Jude Igbanoi last Friday, amongst other things, about her passion, which is to see Nigerian prisons decongested, the death penalty abolished, and why, come 2019, she wishes to represent her constituency in the House of Representatives

ou are the President of the Africa Chapter of the International Corrections and Prisons Association (ICPA). Not much is known about ICPA. Kindly, shed more light on the Association and its activities and relevance. The ICPA is a global association for correctional practitioners from the public, private and voluntary sectors. Its mission is to promote and share ethical and effective correctional practices to enhance public safety and healthier communities world-wide. ICPA is an innovative, learning platform which enhances international and inter-agency co-operation. It actively promotes policies and standards for humane and effective correctional policies and practices, assisting in their development and implementation. For us in ICPA, we

believe that imprisonment is a last resort, and support the development of alternative sanctions and community corrections. We also believe in the capacity for positive change in individuals, their dignity and the duty to protect

“THE VISION OF PRAWA, IS TO PROMOTE A HUMANE AND SECURE SOCIETY THAT CORRECTS AND EMPOWERS, TO PREVENT CRIME, VIOLENCE AND TORTURE”

their rights. ICPA annually hosts a major international conference, and regional events for prison and correctional professionals. These provide opportunity for heads of prisons and other correctional practitioners in various countries including Nigeria and other African countries, to share experiences on effective correctional practices. Also, ICPA has collaborated and formed agreements with partner organisations for standards-setting in both Africa (the Abuja Declaration) and in Latin America (the Barbados Declaration). We have pledged to work together with the United Nations Department of Peacekeeping in a concerted manner, to address the many challenges facing prison systems, particularly in developing and post-conflict environments (the UNDPKO Declaration). The Association also works towards the improvement of professionalism, through its Correctional Leadership Academy and Staff Training initiatives. Its work focuses on Prisons, Community Corrections, Architecture and Planning,

11.09.2018 “NO. NO LIFE CAN EQUATE ANOTHER. TAKING THE OFFENDERS LIVES, WILL NOT BRING BACK THE VICTIMS LIVES”

Technology Solutions, Training & Development, Research and Healthcare. In recognising achievements, ICPA’s annual Correctional Excellence Awards gives special recognition to our distinguished colleagues in the field for their work, towards advancing professional corrections. One of ICPA’s achievements, is its ability to bring unique conferences and events, to every part of the world. Through the years, our Association has organised over twenty international and regional events, gathering together thousands of correctional professionals to participate in an inclusive, safe and secure forum, for the exchange of ideas, technology and best practices. Our annual conference attracts attendees from over 70 countries, with around 450 delegates representing a broad geographical area, and from a multitude of backgrounds and sectors. This provides a platform to share, collaborate and learn with others, as well as gain global recognition as a leader in corrections, present one’s work to a forum of global experts and professionals, network within the largest international corrections community, showcase best correctional practices and products worldwide, and create business opportunities and contacts. You are the Founder/Executive Director of Prisoners Rehabilitation and Welfare Action (PRAWA). What sparked off your interest in prisons? What exactly does PRAWA do? I founded PRAWA at the age of 24, precisely on 16th Dec, 1994. What led to this, was the observation I made from a study I carried out during my NYSC. I served with the Nigeria Police Force, Ondo State Command. During this period, I carried out a study on detainees and prisoners in the police cells and prisons in the State.

COVER/9 The finding of this research, clearly showed me that there is need for urgent, holistic and sustainable interventions in prisons and detention centres, and indeed on the justice and security sector in Nigeria. The vision of PRAWA, is to promote a humane and secure society, that corrects and empowers to prevent crime, violence and torture. Its programme focus, is on the following areas: security and justice sector reforms; social development and rehabilitation, and research and documentation. In actualising its mandate, PRAWA utilises the following strategies: Training and Capacity Bruilding; Research and Policy Advocacy; Human Rights Monitoring; Rehabilitation, Care and Support Services as well as Community Justice initiatives. PRAWA runs programme interventions in Nigeria, and many other African countries. It has four offices in Nigeria, and liaison offices in Kenya, Rwanda, Zambia, Burundi, and Democratic Republic of Congo. In Nigeria its offices are located in Lagos, Enugu, Abuja and Kano. The organisation has been granted an observer status, by the African Commission on Human and Peoples Rights. Its work has led to the engagement of over 1000 full time, part time, and volunteer staff. It has designed and implemented 79 projects to date, which include the training of over 100,000 prison, police and other justice and security sector officers, provision of rehabilitation and support services to prisoners, ex-prisoners, youth-at-risks, torture victims and their families, and development of over 40 resource materials and other publications. This includes human rights training manuals for prison officers, Nigeria Police Human Rights Training Manual, Nigeria Police Human Rights Trainers Guide, Human Rights Training Manual for Nigeria Police Special Armed Robbery Squad (SARS) and Mobile Police Unit. Some of the flagship projects of PRAWA include, Establishment of National Clearing House for Pro Bono Legal Services; Prison Decongestion and Redress Scheme; Torture Documentation and Redress Scheme; Crime Prevention and Community Development Scheme; Development of the National Legal Aid Strategy spanning 2017 to 2022, to mention but a few. Nigerian Prisons are famous for extreme overcrowding, appalling and highly unsanitary conditions, disease, and grossly inadequate medical facilities. In fact, the Minister of Interior was once quoted to have said

that, anyone who is incarcerated in a Nigerian Prison would most likely emerge as an animal. Can you corroborate his assertion? What is the reason for this sad state of affairs? The challenges faced by the Prison Service, is traceable to the following: High number of pre-trial awaiting trial persons, and long duration of pre-trial detention; poor attitude of policy makers and the general public,S to prison and justice sector related issues; arbitrary arrest and detention by the police and other law enforcement agencies, poor investigation skills, lack of adequate forensic equipment; lack of coordination among justice sector institutions, as well as poor emphasis on prevention of crime, rehabilitation and reintegration of offenders. There is over-utilisation of imprisonment for almost all cases of offending behaviour, including minor offences. It is not unusual to find an accused spending several months and years in prison, for stealing a tuber of yam or a goat. In May this year, PRAWA Pro bono lawyers and paralegals in Lagos, were able to facilitate the release of a young man detained in Ikoyi prison for more than 6 months for stealing of a bottle of eva wine worth less than N1,500. Thus, the cost of his feeding, etc will be on the State, in addition to the possibility of learning of more criminal behaviour from serious offenders. In some of our past interviews, some State Government officials have stated that there’s not much the States can do to improve prison conditions, since prisons are Federal Government institutions. Does this really stop States from doing their own bit to improve conditions, or in reality, can they find ways to assist if they so desire? The law does not stop the States, from contributing towards improving the conditions of prisons within their respective States. Recently, PRAWA and the Nigerian Prison Service conducted a Prison Survey and one of the findings of that survey, is that a very high proportion of the prisoners (over 80 percent) are residents of the States where the prisons are located, prior to their incarceration. Most of them, will also return to that State upon their release from prison. In the interest of community safety and prevention of reoffending behaviours in these States, it will be good for the respective States to assist as well. The same also goes for the various local governments and communities, in the State. There are examples of assistance given by some States to the Prison Service; in Akwa Ibom State, the State Government constructed and equipped a prison for the Service. Ebonyi State Government is currently constructing a building for the Service. Lagos State Security Trust Fund, donated some vehicles for transportation of prisoners. There are also other few States that have assisted as well. However, these are very few; more States need to assist as well. The fact that the prison is on the Exclusive Legislative List in the Nigerian Constitution, should not deter States from assisting. Secondly, States should take concrete steps, to ensure that their agencies including their respective State Judiciary, Ministry of Justice, Environmental and Traffic Agencies, do not contribute to influx of persons/ detainees into the prisons. This can also be achieved through decriminalisation; of petty/minor offences. Nigeria has ratified the United Nations OPCAT, by which we have agreed to international inspections of our places of detention by the UN Sub-Committee on the Prevention of Torture (SPT). We would imagine that detention centres include prisons. How then, have we been able to get away with having some of the worst prison facilities in the world, comparable only to extremely horrible places like Sabaneta in Venezuela and Antanimora Prison in Madagascar? Nigeria has ratified both the United Nations Convention on Torture, Cruel, Inhuman and Degrading Treatment or Punishment (UNCAT), and the Optional Protocol to the United Nations Convention on Torture, Cruel, Inhuman and Degrading Treatment or Punishment (OPCAT). However, in reality, many of the provisions of both UNCAT and OPCAT, are not effectively observed. The prison is a detention centre, just as there are over 15 other institutions in the country with detention centres. All these, should benefit from the provisions of both of these instruments. There is need for, effective internal and external oversight monitoring mechanisms. There is need to have a centralised database of all persons in detention, in all places of detention in Nigeria, and human rights training of law enforcement agencies, as contained in the Recommendations to Nigeria during 2013 Universal Periodic Review of Nigeria. There is also the need to ensure the independence, full and effective functioning of the National Preventive Mechanisms, in line with the provision of OPCAT, proper resourcing of these mechanisms, etc. Why, in your view, is there this perceptibly high level of recidivism in Nigerian prisons? Does that mean that we do not have effective rehabilitative facilities in our Prisons? What can be done about this? We need to conduct proper risks and needs assessment of all persons in prison custody, upon their arrival in prison. The outcome of this assessment, should guide the design of the treatment regime for each prisoner, proper classification of every prisoner according to their risks and needs, as well as nature of offence; segregation of first offenders and minor offenders from recidivists (habitual offenders, CONTINUED ON PAGE 10

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‘OUR CRIMINAL JUSTICE SYSTEM LACKS COORDINATION’ hardened criminals); proper classification of each prison, according to the nature of the offenders/prisoners detained therein. This should guide the security requirements, facilities and regime of each of these prisons, as well as the type of inmates to be detained in the facility. Other measures are: Increased support towards rehabilitative programmes and facilities in prisons, including the quality and scope of the educational and vocational training,full functional psychological units, spiritual counselling and training in good social skills, including life planning skills, alternative to violence skills, anger management, etc; Effective community reintegration programmes aimed at prevention of reoffending behaviour, aimed at addressing the factors that led to the initial offending behaviour - these will include addressing problems of unemployment, peer pressure, drug abuse, accommodation needs, etc., and the use of relevant professionals to provide necessary follow-up and support for ex-prisoners and their families, such as aftercare, probation, parole officers, and reduction of the stimga against ex-prison inmates, as stigmatisation is indeed, the second prison, and it makes it difficult for the ex-prisoner to effectively reintegrate into the community and live a normal life. Do you believe in the death penalty? Is it an effective deterrent against the commission of the crimes it seeks to punish? No. No life can equate another. Taking the offenders lives, will not bring back the victims lives. Secondly, empirically, death penalty has not been found to be an effective deterrent. Statistics have shown that, the frequency and severity of the offence have not been reduced, when such offences were made to be capital offences. Countries without death penalty, have not fared worse than those with death penalty, with respect to specific offences that attract death sentence in these countries. Thirdly, any error is irreparable. With the quality of our investigative skills, use of torture in eliciting confessional statements, it can be imagined the rate of accuracy of most convictions in Nigeria. Even in more developed climes, some DNA evidence, have proved some sentenced to death innocent of the crimes they were sentenced for. How is it that some young offenders end up in adult prisons? Are there no facilities like borstals for young offenders? How is the issue of prisoners with mental health issues, handled by the authorities? There are borstal facilities in Kaduna, Ilorin and Abeokuta. These are surely not enough. All the existing borstal facilities, are for males. There is currently none for women. Many States have also not established remand homes and approved schools for juveniles and young offenders, in line with the provision of the Child Rights Act and the applicable Child Rights Laws. Juveniles and young offenders, are still found in adult prisons because of the fact that in many States, there are no facilities for young offenders. To have them detained in adult prisons, their ages are oftentimes exaggerated in the warrant. To address this problem, the proposed new amendments to the Prison Act by both the Senate and the House of Representatives, have made several provisions regarding this, including safeguards to prevent the detention of young offenders in adult prisons, and the establishment of young offenders facilities in all States of the Federation. On the treatment of mentally ill persons, the Lunacy Law is still being used. The detention of the so-called civil and criminal lunatics and their treatment, leaves much to be desired. Again, this is one of the issues the proposed amendments to the Prison Act addresses. For example, the proposed amendment includes the establishment of a Mental Health Review Board in all States of the Federation, to be constituted by relevant professions including psychiatrists and psychologists, and with the mandate to promptly review all cases of mentally ill persons in the prisons. One major problem that has been identiﬁed in Nigerian Prisons, is that indigent prison inmates do not really have access to free legal services. Also, the Legal Aid Council of Nigeria, is

CONTINUED FROM PAGE 9

handicapped in this regard. How can this issue be addressed, especially as it would be one effective means of Prison decongestion? The simple answer to this question, is to have the full and effective implementation of the Legal Aid Act 2011 and the National Legal Aid Strategy of 2017 to 2022. There is need, for proper resourcing of the Legal Aid Council of Nigeria. The Legal Aid Act 2011 provides for the establishment of a Legal Aid Fund, but this is yet to be implemented by the government. We need proper coordination of all legal aid providers in Nigeria, including the Legal Aid Council of Nigeria, State Ministries of Justice Legal Aid Support, such as the Office of Public Defender and civil society organisations, including NGOs and Faith Based Organisations (FBOs) providing pro bono legal services. PRAWA, in partnership with the Legal Aid Council of Nigeria (LACON), and Nigerian Bar Association (NBA) with the support of Justice for All (J4A), developed the National Clearing House Database of Pro Bono Legal Services Providers. To actualise the full benefits of this initiative, all pro bono legal service providers should register with the Legal Aid Council of Nigeria (LACON), and provide up-to-date information on those they are providing service for. Also, information on all detainees in prisons and other detention centres requiring free legal aid services, should be provided to LACON. This information should be used by LACON to identify legal aid needs and gaps, as well as ensure that these are attended to by available pro bono lawyers and paralegals registered with them. How would you assess the current state of Nigeria’s criminal justice system? It still needs much work. The Nigerian Criminal Justice System lacks proper coordination, including intra, inter and multi agencies coordination. Given the long duration it takes for cases to be completed, the number of pre-trial detainees, the length of their stay in custody, the rate of conviction and the recidivism rate, it is obvious that we need to do more as a nation. Despite this sad tale, there are some bright lights. This can be seen in some pilot or demonstration (small scale) interventions that need to be replicated and scaled up. We have the Administration of Criminal Justice Act;

“GIVEN THE LONG DURATION IT TAKES FOR CASES TO BE COMPLETED, THE NUMBER OF PRE-TRIAL DETAINEES, THE LENGTH OF THEIR STAY IN CUSTODY, THE RATE OF CONVICTION, AND THE RECIDIVISM RATE, IT IS OBVIOUS THAT WE NEED TO DO MORE AS A NATION” many States now have the Administration of Criminal Justice Laws. We also have other laws, such as the Child Rights Act, Violence Against Persons (Prohibition) Act 2015 and the Torture Prohibition Act. A comprehensive amendment of the Prison Act – as being proposed by the National Assembly - will positively advance and transform it into the Prisons and Correctional Services. The Police Act, is also being amended. We need to ensure the full and effective implementation of these laws, to begin to feel its benefits on the administration of criminal justice in Nigeria. The Nigerian Bar Association recently honoured you with a prestigious award, for your outstanding work in criminal justice reform. What does the award mean to you? I am indeed, delighted at this recognition. I thank God for it. I dedicate it to the Almighty God, and to the many victims of crimes, to the men and women locked up in the many prisons and detention centres in the country and in other countries, and indeed, to criminal justice professionals who have dedicated their time, skills and

resources, to contribute to the reform of the Nigerian justice system. I especially thank my husband and children, as well as the Board and Management of PRAWA and my other colleagues at PRAWA, who supported and assisted me in my work. You aspire to be elected into the House of Representatives. As a Lawyer, what would be your contribution in the area of law reforms? I am contesting for the post of Federal House of Representatives for Ikwuano/ Umuahia Federal Constituency, in Abia State. I am committed to contributing to legislative excellence, aimed at ensuring that good laws are made that will impact positively on the people, and that all necessary steps – including appropriate budgetary allocations and oversight processes – are carried out to facilitate effective implementation of laws and policies, in the interest of the people. I am coming out to contest, truly, for the service of the people. Some of the issues I will focus my legislative agenda on, include, making laws that aim at achieving the following: Promote enabling environment for social development and job creation to thrive; utilising technology, innovations, industry to effectively drive the economy; provide a strong and comprehensive focus on the youth, in a way that addresses their needs and encourages their full and positive contributions to the society; empower women through strengthening, supporting and acknowledging their contributions in the economic, social and political sphere; promoting the voice and active participation of women in all spheres; ensuring the protection of women against violence and marginalisation; promote effective and sustainable Security and Justice Sector reforms; support institutions, agencies and interventions under this sector, to enhance their efficiency, quality of service delivery, compliance with human rights standards, and prevention of crime and offending behaviour; support and drive infrastructural development aimed at improving the quality of life of the citizens; support the welfare of the elderly, persons with physical and mental disabilities, as well as other vulnerable groups; promote access to quality education in safe environment, and promote laws that ensure accessible, affordable, and quality health care services for the citizens, including those in rural areas.

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TALKING CONSTITUTIONAL DEMOCRACY DR. MIKE OZEKHOME, SAN, OFR, FCIARB, PH.D, LL.D

SMS only to 08098898888

Has President Buhari Breached Provisions of the Electoral Act? Provisions of the Electoral Act ection 90(1) of the Electoral Act, specifically gives INEC the power to limit the amount of money or assets an individual can contribute to a political party. The section provides as follows: “The Commission shall have power to place limitation on the amount of money or other assets, which an individual or group of persons can contribute to a political party”. The above section, deals with limitation of contribution to political parties, but, not to a candidate. Consequently, the power to limit contribution to Political parties, rests squarely with INEC. The Act, in addition to the above power, goes further in Section 91(9) and (10) respectively, to prohibit and criminalise donation of up-to one million naira by an individual or a group to a candidate. Various punishments are provided, for such a compromised candidate by Section 91(10), ranging from 3 months imprisonment and N100, 000 fine or (both), to 12 months imprisonment and N 1 Million or (both). In the case of an individual or any other entity who donates more than N1, 000,000 to any candidate of a political party, Section 91(11) criminalises this by imposing punishments ranging from 9 months imprisonment or N500, 000 fine (or both), to such an individual or entity.

Donation to a Candidate However, the important issue to be analysed here, is the use of the phrase “donation to a candidate”. Looking at the recent political happenings in the country, whereby some CSOs, individuals, associations and other interest groups came together to purchase nomination forms for some interested individuals who intend to contest for their party primaries, can that really be seen as a donation within the context of the Electoral Act? Specifically, can the purchase of the nomination and expression of interest form for N 45 million by a group of persons for President Muhammadu Buhari, for example, or for PDP’s Atiku Abubakar for N12 million, be regarded as a breach of the Electoral Act of 2010? I think not. Black’s Law Dictionary, 8th Edition, defines a “donation” to mean “a gift, especially to a charity”. It also defines the word “purchase” to mean “the act or an instance of buying”. Looking at the above definitions, can it be said that the N 45 million with which a group purchased PMB’s nomination form was really “donated” to President Buhari himself, who is an interested contestant, or that the form was “purchased” for him? For me, the act of these individuals or groups that purchased the form for PMB or for Atiku, merely deals with “purchase of nomination and expression of interest form” and not “donation” to an aspirant. Buhari is not yet a candidate. He is not even yet an aspirant, as I shall show anon, through a plethora of case law. He is just an interested party, intending to be an aspirant. The form itself, is a mere nomination and expression of interest form. Difference between Candidate and Aspirant What then is the difference between a “candidate” and an “aspirant”, since Buhari merely expressed an intention to be an aspirant, and has not yet graduated

President Muhammadu Buhari

to the lofty level of being a candidate? Nigerian courts have a warehoused corpus of jurisprudence, on these issues. A critical look at the following definitions will clarify some of the above critical issues. In MOHAMMED & ANOR. v ORIAKU (2008) LPELR-4499(CA), it was held, as regards the meaning of a “candidate”, thus: "The petitioner or its candidate, obviously means a party or its candidate; there is no atom of ambiguity in that. A candidate of a party, is as defined by Section 32(1) of the Electoral Act which reads, "every political party shall not later than 120 days before the date appointed for a general election under the provision of this Act, submit to the Commission in the prescribed form list of the candidates the party proposes at the elections. Candidates refer to those sponsored by the party, at the election. Per Adekeye, J.C.A. (Pp. 31-32, paras. F-A)” Similarly, in PPA & ANOR v SARAKI & ORS (2007) LPELR-8072(CA), the definition of the terms ''candidate' and "election", came up. The Court of Appeal, with great lucidity, held as follows: "The Act however, does not go on to define the scope of the terms 'candidate' and "election". By the Chambers 21st Dictionary Revised Edition, 2006, 'Candidate' is defined as "Someone who is competing with others for a job, prize, parliamentary seat, etc," while Black's Law Dictionary, 7th Edition defines 'Election' as "The process of selecting a person to occupy a position or office, usually a public office." If that is accepted, then the 'candidate in an election' referred to both in sections 144(1) and 145(1)(d), is a person who has competed with others in the process of selecting a person to occupy a public office. Per Sankey, J.C.A. (P. 75, paras. A-D)”.

“FOR NOW, PRESIDENT BUHARI, OR ATIKU, OR ANY OTHER INTENDING ASPIRANT OF ANY OF THE POLITICAL PARTIES (INCLUDING THE OVER 15 OF PDP), WHO HAS HIS NOMINATION FORM PURCHASED FOR HIM, COMMITS NO OFFENCE KNOWN TO THE ELECTORAL ACT OR THE NIGERIAN CONSTITUTION”

On the definition of the words “aspirant”, see the case of: PDP & ANOR v SYLVA & ORS, where it was held: "An aspirant is a person with a strong desire to achieve a position of importance, or to win a competition. Indeed, Section 87 (1) of the Electoral Act States that: "A political party seeking to nominate candidates for elections under this Act, shall hold primaries for aspirants to all elective posts." From the above, it is clear that an aspirant is a person who contested the primaries. An aspirant is, thus, a candidate in the primaries. Per Rhodes-Vivour, J.S.C. (P. 37, Paras. B-D)”. This means that it is when a person actually participates in the primaries, that he can even be called an aspirant. The reverse of this is that, all other persons merely seeking to participate in the primaries, are not yet aspirants. They may just be described as interested persons, intending to be aspirants. As a necessary corollary, a candidate is a person who has contested primaries as an aspirant, won the primaries, and is now participating or contesting in the general elections with candidates from other political parties. In EZE v UGWUEZE & ORS (2014) LPELR22481(CA), the Court of Appeal also dilated on this concept, thus: ''The Apex Court in PDP v Sylva (Supra) at page 126, defined aspirant thus:- (a) An aspirant is a person with a strong desire to achieve a position of importance, or to win a competition. (b)An spirant is a person who contested the primaries. (c) An aspirant is a candidate in the primaries. Section 156 of the Electoral Act, also defined aspirant as a person who aspires or seeks or strives, to contest an election to a political office. It is obvious from the above definition, that obtaining nomination form, being screened and cleared provisionally and other pre-primary steps as argued by counsel, do not combine to make a member of a political party an aspirant within the meaning of Section 87(9) of the Electoral Act. It is the participation in the contest/selection, that confirms the status.'' Per Mshelia, J.C.A (Pp. 29-30, paras. E-C)”. From the litany of cases analysed above, it is crystal clear that, for someone to graduate from position of an “aspirant” to that of a “candidate” to a political office, the person must first pass through three stages: (1). the stage of being a mere “interested person seeking to be an aspirant”. That is why the form purchase, is a mere “nomination and expression of interest form”. (2). the stage of being an “aspirant”. (3). the stage of being a “candidate” who actually contests election against candidates from other political parties. Indeed, from the case of EZE v UGWUEZE & ORS (Supra) the mere act of obtaining a nomination and expression of interest form, being screened and cleared provisionally and other pre-primary steps, do not combine to make a member of a political party an aspirant, within the meaning of Section 87(9) (which deals with nomination of candidates by political parties) of the Electoral Act. PMB can thus, be said not to even be an aspirant yet. It is his actual participation in the contest or selection during the primaries of APC fixed for September 20, 2018, that will confirm his status as an aspirant. If he wins at the primaries, whether through real contest, or by mere affirmation (of course, the latter is truer), then he becomes a candidate. That is when the provisions of Sections 91 (9), (10) & (11), are fully activated, as regards how much can be contributed towards his election. For now, President Buhari, or Atiku, or any other intending aspirant of any of the political parties (including the over 15 of PDP), who has his nomination form purchased for him, commits no offence known to the Electoral Act or the Nigerian Constitution. Na so I see am o! From my very little knowledge of the law. Finito. Shikena. Opoo. Otitan. Ogwusigo. Dr Mike A. A. Ozekhome, SAN, OFR, FCIArb, Ph.D, LL.D., Constitutional Lawyer and Human Right’s Activist

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INSIGHT ABUBAKAR D. SANI

xL4sure@yahoo.com

As Malami and Banks Turn Tax Collectors . . .

Introduction n a quiet revolution of sorts, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN, has reportedly written letters to some blue-chip companies, in which he demanded the repayment of billions of naira, purportedly due to the Federal Government as tax arrears. The most high-profile of the alleged defaulters is mobile phone giant, MTN, which was surcharged in the sum of N2 billion. This development is coming on the heels of the recent appointment by the Federal Inland Revenue Service (FIRS), of some banks as tax “collecting agents” in respect of account holders in such banks. The banks were reportedly directed to issue so-called “Post No Debit” orders on such accounts, “pending the further directives” from the FIRS. Bureau De Change operators appear to be the first casualties of this directive, as their umbrella Association has publicly criticised it. The obvious questions are, whether both interventions are valid. When did the AGF become a tax collector, or was that not the purpose of his letters? Are those letters within his constitutional remit? Can a tax authority properly delegate the function of tax collection under the law? If so, are banks statutorily recognised to be so authorised? Lets’ find out. The AGF - Tax Collector or Tax Law Enforcer? There is no precedent – at least, none that I’m aware of - for Malami’s letters. That does not, by itself, make it wrong, of course. But, what are the limits of his powers under the law? Do those powers include or justify demanding the payment of tax? The office of the AGF, is a creature of the Constitution (Section 150 thereof). His powers are spelt out in Section 174(1) therein as simply “to institute, undertake, takeover, continue/ discontinue” criminal proceedings: See AKINGBOLA v FRN (2012) 9NWLR pt. 1306 pg. 511. However, nowhere in the Constitution (or any other law that I am aware of), do they include demanding the payment of tax - unless his letters can reasonably be construed as incidental or necessary for the exercise of his said prosecutorial powers within the contemplation of Section 10 of the Interpretation Act. Are they? If they are not, then they are clearly ultra vires under the said constitutional provisions, as expressio unius est exclusio alterius: P.C.H.S. v MIGFO (2012) All FWLR pt. 642 pg. 1615 @ 1643. In other words, in that event, Mr. Malami’s letters would be invalid and void, but not otherwise. Banks as Tax Collectors The directive of the FIRS which reportedly appointed banks as tax collectors, is far more worrisome as it has widespread implications not just for bank customers, but for the general public. The affected accounts were reportedly suspended pursuant to Section 31 of the FIRS Act, Section 49 of the Companies Income Tax Act (CITA) and Section 50 of the Personal Income Tax Act (PITA). Accordingly, those provisions deserve close scrutiny. Section 49 of CITA

provides that “The Board may by notice in writing appoint any person to be the agent of any company and the person so declared the agent shall be the agent of such company for the purposes of this Act, and may be required to pay any tax which is or will be payable by the company from any monies which may be held by him for or due by or to become due by him to the company whose agent he has been declared to be, and in default of such payment, the tax shall be recovered from him”. Similar provisions are contained in Section 50 of PITA and Section 31 of the FIRS Act. It is curious that, a law will empower the State to deprive a person of his or her property on account of a supposed debt without due process, i.e., extrajudicially. However, Section 44(1) & (2)(a) of the 1999 Constitution appear to justify the directive. It provides, inter alia, that: "No moveable property or any interest in an immovable property shall be taken possession of compulsorily and no right over or interest in any such property shall be acquired compulsorily in any part of Nigeria except in the manner and for the purposes prescribed by a law ... Nothing in subsection (1) of this section shall be construed as affecting any general law for the imposition or enforcement of any tax, rate or duty" Can this provision be interpreted to mean that, an account holder can be deprived of his or her funds to settle a presumed tax liability which has not been determined by a court of law?. I believe that a dispassionate examination of other relevant provisions of those laws, as well as the 1999 Constitution would show that, indeed, tax should only be recovered through judicial process. This takes us to the relevant statutory provisions for recovering tax through litigation. These include Section 78(1) of PITA, which provides that “Income tax may be sued for and recovered in a court of competent jurisdiction by the relevant tax authority in its official name with full costs of the action from the person charged therewith as a debt due to the Government of the Federation or to the relevant tax authority”. Similar provisions are made, inter alia, by Section 87(1) of CITA. Like all expropriatory statutes, tax laws are supposed to be construed strictly against the acquiring authority and sympathetically in favour of the citizen: AFOLABI v GOVERNOR OF OYO STATE (1965) 2 NWLR pt. 9 pg. 734 @ 753H. Notwithstanding the seeming fiat granted by Section 44(2)(a) of the Constitution, I believe the said directive and its supposed legislative bases are inconsistent with the right of fair hearing guaranteed under Section 36(1) & (2) of the 1999 Constitution. This provision entitles a person whose civil rights and obligations are in issue, to fair hearing within a reasonable time by a court or other tribunal. It is settled that, statutes should be considered as a whole, in that related provisions should be construed together: BELLO v THE STATE (1986) 17 NSCC pt. II pg. 1257 @ 1285. In this regard, I believe that Sections 59(2) (a) & 70(2) of PITA and CITA, respectively, violate the constitutional guarantee of fair hearing. They provide

Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN

that an assessment of tax payable “shall not be impeached or affected by reason of a mistake therein as to: (i) the name of a taxable person; (ii) the description of his income; or (iii) the amount of any income tax charged or shown to be payable”. If an assessment of tax liability cannot be impeached under any circumstances, it simply means that that determination is final and conclusive. Thus, a Post No Debit order on a bank account, ipso facto, peremptorily deprives the account holder of the funds therein FOR GOOD. I submit that, this evidently makes the aforesaid provisions – and thus, the Post No Debit Directive – unconstitutional. This is all the more so, because, by virtue of Item 7 of the Concurrent Legislative List of the Constitution, the National Assembly can only empower State Governments or their parastatals – not banks - to collect tax. This is buttressed by Section 2 of the Taxes and Levies (Approved List for Collection) Act, as amended, which provides, inter alia, that “notwithstanding anything contained in any enactment, no person other than an appropriate tax authority shall assess or collect on behalf of the Government, any tax or levy”. Conclusion The conclusion of the tax amnesty offered by the Voluntary Assets Income Declaration Scheme (VAIDS), has apparently given the authorities an opportunity to intervene through the AGF’s said letters as well as hitherto untested ‘direct debit’ tax recovery legislations. Both are fraught with difficulty. As for the former, unless his letters are a prelude to possible initiation by the AGF of criminal proceedings to recover tax, they are simply untenable. As far as the latter is concerned, there is something distinctly unsettling about a unilateral and peremptory confiscation by Government, of the funds of a citizen, on the basis of an extra-judicial determination that he/she is a tax defaulter.

“THE POST NO DEBIT ORDER, NEGATES THE FUNDAMENTAL RIGHT OF FAIR HEARING UNDER THE CONSTITUTION. ANYONE ACCUSED OF NON-PAYMENT OF TAX, SHOULD BE CHARGED TO COURT, AND NO HUSHHUSH ADMINISTRATIVE DETERMINATION OF HIS LIABILITY IS PERMISSIBLE”

This is because non-payment of tax is a crime: Sections 92 & 94 of CITA and PITA, respectively. Under the Constitution, anyone accused of committing a crime, is presumed innocent until proven guilty – Section 36(5). Section 44(2)(a) of the Constitution, is not an exception to this rule, and it has never been. The Post No Debit Order, negates the fundamental right of fair hearing under the Constitution. Anyone accused of non- payment of tax should be charged to court, and no hush-hush administrative determination of his liability is permissible: ADIGUN v ATT- GEN. OF OYO STATE (1987) 1 NWLR pt. 53 pg. 645 @ 678. Much as prompt payment of tax is a civic duty, its recovery ought not to be a pretext to ride rough-shod over civil liberties, particularly the rights of fair hearing and to property.

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Impact of the Recent Actions of Government Against MTN Nigeria on Investor Conﬁdence This article by Michael Dedon, aims to critically examine the implications of the actions of the Nigerian Government under customary international law, as it pertains to protection and security for foreign investments, under which category MTN Nigeria falls

Allegations and Fines he Central Bank of Nigeria (‘CBN’) recently indicted MTN Nigeria, alleging that it collaborated with Standard Chartered Bank Nigeria, Citibank, Stanbic IBTC Bank and Diamond Bank Plc, to illegally repatriate $8.134 billion between 2007 and 2015 from Nigeria to its parent company in Johannesburg, South Africa. As a consequence of the said indictment, the CBN slammed a fine of N5.87 billion on the four banks, over flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006. In line with the fine on the banks, the CBN also directed MTN Nigeria to immediately refund $8,134,312,397.63 it alleged was illegally repatriated by the telecoms company, to the coffers of the CBN. MTN’s Response MTN Nigeria denied the allegation, insisting that the apex bank vetted and approved the transactions in question. In a statement (widely circulated by the news media) by MTN Nigeria, it was stated that “No dividends have been declared or paid by MTN Nigeria, other than pursuant to CCIs issued by our bankers and within the approval of the CBN as required by law”. Stanbic IBTC’s Response In its official response to the CBN, Stanbic IBTC Bank described the conclusions reached by the regulator, as based on “factually incorrect premises”. It reminded the CBN of the outcome of its findings on the same issue, following a special examination that was conducted in March this year. The finding reportedly cleared the bank of any wrongdoing, claiming that its actions were in line with extant rules and regulations. The other banks have also issued statements in similar vein, to that of Stanbic IBTC Bank. Attorney-General of the Federation Almost concurrently with the

Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN

said CBN’s action, the office of the Attorney-General of the Federation (‘AGF’) also wrote to MTN Nigeria, demanding the company should pay circulated by the news media $2bn as tax arrears on imported equipment, and unpaid VAT on payments made to suppliers. This was conveyed in a letter signed by Mr Abubakar Malami, SAN (the AGF), which was circulated by the news media. In the said letter, the AGF notified MTN that his office made a high-level calculation, that revealed that MTN Nigeria should have paid approximately $2bn in taxes for importation of foreign equipment and unpaid VAT on payments made to foreign suppliers, over the last 10 years. However, MTN Nigeria, in reaction, said that an initial assessment of the period indicated that total payments made to the tax authorities with regard to the foreign imports and payments amounted to $700m, adding that, it had fully settled all

“THE STATE’S RESPONSIBILITY, EXTENDS TO ACTIONS PERPETRATED BY ITS ORGANS. THE APPLICABILITY OF A TREATY PROVISION ON PROTECTION AND SECURITY TO DIRECT ATTACKS ON THE INVESTOR’S PERSON AND PROPERTY BY ORGANS OF THE HOST STATE, IS BEYOND DOUBT....IT IS HOPED THAT, THE NIGERIAN GOVERNMENT WILL NOT LEARN TO ITS COST, THAT IF YOU ARE NOT NICE TO FDI, IT UPS STICKS AND FINDS A NEW PLACE TO LIVE”

Executive Chairman, MTN, Phuthuma Nhleko

taxes on the imports under scrutiny. Possible Ruin of MTN As a direct consequence of the actions by the CBN and the AGF, the shares of the MTN Group plunged by 25 per cent to a nine-year low of R86.50 (South African Rand). Also, the much anticipated MTN Nigeria initial public offerings (‘IPO’), which was an initiative to absorb the hit of the Nigeria Communications Commission (‘NCC’) fine earlier paid by the telecoms giant, has been put on hold. There is no doubt that, the said actions against MTN Nigeria have had a negative consequence on its brand, and also threatens its corporate existence in Nigeria, as the company may go under, if the Nigerian Government insists that all the imposed fines and demands on the company are complied with, without an opportunity for a review or negotiations. It is noteworthy that, the value of the current claims by the Nigerian government at R150 billion, outstrip the total value of all the shares in MTN listed on the Johannesburg Stock Exchange in South Africa. As it is, MTN Nigeria may be wondering that even if it succeeds in convincing the Nigerian authorities, that they had the permission it claims it was given to move $8.1 billion in dividends out of the country and even if it manages to prove that its tax affairs are in order despite a $2 billion demand from the Nigerian Government, its investors will constantly be wondering where the next brickbats will be coming from. This is bad for investors’ confidence. The actions of the Nigerian Government, may look like a shake down to the South

African investors of MTN Nigeria. This article is not to apportion blame or say who is right and wrong, as between the Nigeria Government and MTN Nigeria. Rather, it is to highlight the impact of the actions taken by the Nigerian Government on investor(s) confidence, bilateral relations with South Africa, and the obligations of the Nigerian Government to foreign investors operating in the Nigerian economy. Duty of State to Protect Foreign Investors International investment law, is designed to promote and protect the activities of private foreign investors, like MTN Nigeria and three of the four sanctioned banks. Globally, foreign investment is regulated by a Bilateral Investment Treaty (‘BIT’) between two countries desirous of trade, or a regional treaty, such as the Economic Communities of West African States (‘ECOWAS’) or the North American Free Trade Agreement (‘NAFTA’). The basic international law governing treaties and their interpretation and application, is the Vienna Convention on the Law of Treaties. Like contracts, treaties bind the State parties who have consented to them. Under international law, State actors assume certain responsibilities, to respect treaties and protect foreign investments. Under the International Law Commission on State Responsibility, it is provided as follows: “Article 4: Conduct of organs of a State CONTINUED ON PAGE 15

11.09.2018

THE LIGHTER SIDE/15

LEGAL HUMOUR

We Hold Your Brief JUDE IGBANOI jude.igbanoi@thisdaylive.com Dear Counsel, I have been reading your column every Tuesday, and I am very impressed with the legal advice given. Please, I need your legal advice on this matter. I am a unit holder of 5,000 units in one of the Banks in Nigeria. In 2015, this Bank paid me my distribution at the rate of 0.08k per unit. However, the 2017 Financial Statement I received contained the following statement ‘....proposed distribution per unit N5.38 (2017) and 5.35 (2009).....’ This is found on page 3. On page 5 it stated ‘The Fund Manager proposed that a dividend of N5.38 per unit will be paid to members.’ I want to believe the same amount of N5.35 was made in the 2015 financial statement for unit holders. (No financial statement was sent to me that year.) I also understand that to mean that in 2015 N5.35 per unit was supposedly paid. Then, why was I paid N0.08 per unit? What am I to do? I feel short changed. Do I have a case? Mr. Ade, Oshogbo

Dear Mr. Ade, You do have a very good case. But from all indications, it appears that there was a typographical or clerical error in the preparation of your 2015 statement. The first step that you need to take, is to lodge a complaint with the Bank’s Registrars, through your Stock Broker. This error must be stated clearly. Attach a copy of the slip indicating the amount you received, for the 2015 financial year. If you did not acquire your shares through a Stock Broker, then engage a Chartered Accountant or a Lawyer, to do this for you. They will take the necessary steps, to rectify this anomaly. But if you are unable to resolve this through this means, my advice is that your Lawyer should file and maintain an action in court against the Bank, to ensure that you get what is rightly accruable to you.

A Lawyer and his Czechoslovakian friend, were camping in a backwoods section of Maine. Early one morning, the two went out to pick berries for their morning breakfast. As they went around the berry patch, gathering blueberries and raspberries in tremendous quantities, along came two huge bears a male and a female. The Lawyer, seeing the two bears, immediately dashed for cover. His friend, though, wasn't so lucky, and the male bear reached him and swallowed him whole. The Lawyer ran back to his Mercedes, tore into town as fast has he could, and got the local backwoods Sheriff. The Sheriff grabbed his shotgun and dashed back to the berry patch with the Lawyer. Sure enough, the two bears were still there. "He's in THAT one!" cried the Lawyer, pointing to the male, while visions of lawsuits from his friend's family danced in his head. He just had to save his friend. The Sheriff looked at the bears, and without batting an eye, levelled his gun, took careful aim, and shot the female. "Whatdidja do that for!" exclaimed the Lawyer, "I said he was in the other!" "Exactly," replied the sheriff. "Would you believe a Lawyer who told you the Czech was in the male?" ˾˾˾ An Old Chinese proverb... "It is better to enter the mouth of a tiger, than a court of law”.

IMPACT OF THE RECENT ACTIONS OF GOVERNMENT AGAINST MTN NIGERIA ON INVESTOR CONFIDENCE CONTINUED FROM PAGE 14 1. The conduct of any State organ shall be considered an act of that State under international law, whether the organ exercises legislative, executive, judicial or any other functions, whatever position it holds in the organisation of the State, and whatever its character as an organ of the central government or a territorial unit of the State. 2. An organ includes any person or entity which has that status in accordance with the internal law of the State.” Most investment treaties, contain provisions granting full protection and security for foreign investments. The wording of these clauses suggest that, the host State is under an obligation to take active measures to protect foreign investment from adverse effects. The host State’s duty, is not restricted to preventing damaging acts by private actors. The State’s responsibility, extends to actions perpetrated by its organs. The applicability of a treaty provision on protection and security to direct attacks on the investor’s person and property by organs of the host State, is beyond doubt. In Biwater Gauff v Tanzania (Award, 24 July 2008), the Tribunal said: “The Arbitral Tribunal also does not consider that the ‘full security’ standard is limited to a State’s failure to prevent actions by third parties, but also extends to actions by organs and representatives of the State itself.” In Azurix Corp. v The Argentine Republic (Award, 14 July 2006) the Tribunal confirmed that ‘full protection and security may be breached, even if no physical violence or damage occurs’. The Tribunal said: “The cases referred to above, show that full protection and security was understood to go beyond protection and security ensured by the police. It is not only a matter of physical security; the stability afforded by a secure investment environment, is as important from an investor’s point of view. The Tribunal is aware that, in recent free trade agreements signed by the United States, for instance, with Uruguay, full protection and security is understood to be limited to the level

of police protection required under customary international law. However, when the terms ‘protection and security’ are qualified by ‘full’ and no other adjective or explanation, they extend, in their ordinary meaning, the content of this standard beyond physical security.” The two cases summarised above indicate that, unjustified coercive measures taken by organs of the host State against the investor and his property, constitute violations of the “protection and security” standard, if they prejudice the investor to a material degree. Juxtaposing the above restatement of the law on foreign investment to the situation at hand, MTN Nigeria can legally make a claim against the Nigerian Government for State actions which threaten its investment, or for damages resulting therefrom, if it transpires that the actions of the Nigerian Government were unjustified. The said actions may also impact on Nigeria South Africa bilateral relations. Since the inception of democratic rule in Nigeria, South Africa and Nigeria have had encouraging bilateral economic relations. Since then, South Africa has emerged among the top investors in many sectors of the Nigerian economy. South African companies' presence is visible in the Nigerian economy, especially in areas such as telecommunications, engineering, banking, retail, hospitality, property development, construction and tourism, to mention a few. In 1999, the South African and Nigerian governments signed bilateral agreements on trade and investment, and established the South AfricaNigeria Bi-National Commission. These agreements amongst other things, aimed to increase the amount of trade and investment between South Africa and Nigeria. The signing of these agreements witnessed inter-alia (a) improved trade relations between South Africa and Nigeria and (b) South African corporations as big players in the Nigerian economy. Sequel to the signing of the bilateral agreements, the volume of trade between South Africa and Nigeria increased from 1999. Prior to 1999, trade between the two countries was

minimal. In 1994, South Africa exported US$8.1 million worth of products to Nigeria; while it imported US$3.1 million worth of commodities from Nigeria. With the signing of the South Africa-Nigeria Bilateral Trade Agreement, the situation changed. By 2005, South Africa was exporting goods to the value of R3.4 billion to Nigeria and importing R4.2 billion worth of commodities from Nigeria. There are an estimated over 120 South African companies doing business in Nigeria, of which the single largest investor is MTN. Its entrance into the Nigerian market came by way of the first telecommunications auction process in Africa, in January, 2001. At that time MTN’s entrance into the Nigerian market, was the company’s single biggest investment outside South Africa. South African companies are also heavily involved in Nigeria's media and entertainment sector. DSTV, as a major force in the television industry, accounts for 90% of the viewers that watch satellite TV in Nigeria between 2005 and 2009. This has seen DSTV growing into the sixth largest company, listed on the Lagos Stock Exchange. It is hoped that the South African Government and its Nigerian counterpart, can find a middle ground to have this MTN Nigeria (which also affects another South African owned company, Stanbic IBTC Bank) issue amicably resolved, so that bilateral relations between Nigeria and South Africa are not negatively impacted. This also goes for the affected banks. It is recommended that, the Nigerian Government soft pedals and be more amenable to amicable settlement, so that wrong signals are not sent to potential investors at a time that FDI is at a low, and the rate of unemployment very high. It is hoped that, the Nigerian Government will not learn to its cost, that if you are not nice to FDI, it ups sticks and finds a new place to live. Michael O. Dedon, Managing Associate, Giwa-Osagie & Co., Lagos

T H I S D AY Ë¾ Í¯Í¯Ë&#x153; Í°Í®Í¯Í¶

T H I S D AY ˾ SEPTEMBER 11, 2018

BUSINESSWORLD R A T E S MONEY MARKET OBB OVERNIGHT

A S

A T

REPO 3.42 % 2.83 %

CALL 1-MONTH 3-MONTH

2.83% 5.86 % 6.44%

Group Business Editor Obinna Chima Email obinna.chima@thisdaylive.com 08024557078, 08091152219

S E P T E M B E R S & P INDEX INDEX LEVEL 1-DAY MONTH-TO-DATE

344.15% 0.03% -0.24%

7 , 2 0 1 8

S & P INDEX 1/4 TO DATE YEAR TO DATE

-2.84% 4.46%

EXCHANGE RATE N305.901US DOLLAR* ̩

Quick Takes Clickatell Empowers WhatsApp Banking

BUSINESS MEETING

L – R: Lord Mayor of the City of London, Charles Bowman; Chief Executive Oﬃcer, Nigerian Stock Exchange(NSE), Oscar N. Onyema; Chief Executive Oﬃcer, London Stock Exchange Group, David Schwimmer and President, NSE, Abimbola Ogunbanjo, during a business networking meeting hosted by the British High Commission in Lagos… recently

Barkindo: Why OPEC’s Alliance with Non-members Have Been Successful Stories by Chineme Okafor in Abuja The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr. Mohammad Sanusi Barkindo, has explained why the alliance the cartel entered with non-members of OPEC led by the Russian Federation to rebalance the prices of crude oil has remained successful. Barkindo, said while receiving the ‘Africa Oil Man of the Year’ award recently in Cape Town, South Africa, that a lot of people expected the alliance to falter but the decision of the coalition to adopt a fair, timely and transparent goal had seen it overcome the speculations and

ENERGY delivered on its objectives. “We interpret this award as recognition of the teamwork, dedication and selflessness of a remarkable group of countries: namely, the ‘Declaration of Cooperation’ strategic partners. “Working with the statesmen, leaders and representatives of the OPEC member countries and the non-OPEC producing countries has been the honour of lifetime. Thankfully, our tireless efforts have borne fruit and our industry is in a much healthier place than it was two years ago,” said Barkindo in his speech THISDAY obtained in Abuja. Going further, he explained that the perception of OPEC have

since undergone a profound transformation in the last two years with the ‘Declaration of Cooperation.’ He added that this has also caused a great transformation for OPEC and the oil industry. According to him: “It is no coincidence that this has occurred at the same time as an intensification of OPEC’s engagement with Africa. African membership of both OPEC and the ‘Declaration of Cooperation’ strategic partnership has increased, and other African partners engage with us across a broad range of fronts, including through their attendance at the OPEC/Non-OPEC ministerial meetings. “I think one of the most important reasons why the

‘Declaration of Cooperation’ has been successful is because at its heart, it has a fair, timely and transparent goal which can be articulated in four simple words: sustainable oil market stability. “Our means for attaining that goal can be summarised in a similarly straight-forward manner: voluntary cooperation among nations.” He described the approach as being good and encouraged African oil producing countries to consider joining the OPEC in its efforts to work in the interests of producers and consumers, as well as the global economy. Speaking on the speculations raised about its alliance to rebalContinued on page 22

NNPC Turns to China for Expertise in Oilfield Development The Nigerian National Petroleum Corporation (NNPC) has said it is considering going into a partnership with the China National Offshore Oil Corporation (CNOOC), to develop its expertise in oilfield services. CNOOC, a global leader and China’s largest producer of offshore crude oil and natural gas, is the third-largest NOC in China, after the China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (SINOPEC). ¬¬¬¬¬It also stated that the partnership would boost its expertise in the field of oil and gas research and development, adding that it has signed a Memorandum of Understanding (MoU) in that regards with the CNOOC in China.

ENERGY A statement from the corporation’s Group General Manager Public Affairs, Mr. Ndu Ughamadu, recently in Abuja, stated the MoU was signed by the NNPC on the sidelines of the just concluded Forum for China-Africa Cooperation (FOCAC) Summit. It quoted the Group Managing Director of NNPC, Dr. Maikanti Baru, to have said that the MoU marked a milestone in NNPC’s aspiration to transit from an integrated oil and gas company to an energy company. Baru explained that under the agreement, the two corporations would collaborate to get technical expertise required to provide

oilfield services, including operatorship of oilfield assets in Nigeria and beyond. The collaboration, he added, would also reinforce NNPC’s desire to partner with strategic investors to develop strategies for continuous cooperation that will be economically profitable to both parties. The NNPC, he noted would equally see a significant upgrade of its research and development division laboratories in Port Harcourt through the new agreement. “Our aim is to complement the federal government’s determination to meet the growing energy demands and diversify the economy away from reliance on carbon-based fuels,” said Baru.

He explained the collaboration between the two parties would yield the desired outcomes and further cement the established relations between Nigeria and China. Asides oilfield services and research and development, Baru, also noted that renewable energy and biofuels production were another focus area the NNPC was keen to collaborate with CNOOC. He said: “I am looking forward to further collaborating with your organisation towards establishing biofuels refineries in Nigeria and power generation using renewable energy sources.” According to him, the NNPC had identified CNOOC as one Continued on page 22

Clickatell, an authorised WhatsApp Business Solution provider has announced that United Bank for Africa (UBA) will be going live with the bank’s Chat Banking solution – Leo on WhatsApp. With this, customers can now conduct their banking activities in a secure and convenient manner, by communicating with their bank in a verified WhatsApp chat. This capability, was made possible through Clickatell Transact’s .Control platform integrated with the WhatsApp Business API. According to a statement, the .Control platform for Chat Banking allows banks to roll out commonly used banking activities like checking balances, money transfer and purchasing digital products and services across popular communication channels like USSD and now WhatsApp. The platform offers flexibility, reliability, fraud and risk management for banks and a convenient on demand banking capability for consumers wherever they are. Nigeria is recognised as ground zero for global financial inclusion with a rapid accelerating move from the informal economy to the formal sector. The EFInA Access to Financial Services 2016 Survey, had revealed that 48.6 per cent or 46.9 million Nigerians, of the adult population are now formally served by banks or similar. “The introduction of Chat Banking from Clickatell is accelerating the banking adoption curve by eliminating the business and operational overhead required to roll out convenience banking across popular communication channels and in different countries. “The ground-breaking banking platform launches in Nigeria with UBA. Consumers will be able to conduct their banking activities on WhatsApp and USSD with additional channels slated for 2019.

Lagos to Host Beer Festival

Lagos State is set to host the second edition of the Nigeria Beer Festival, between September 25 to October 1, 2018. As part of the efforts to achieve a seamless flow of event, the state government is collaborating with beer brewers in the country and their counterparts across the globe, to create excitement during the week-long fiesta that will climax with the Independence Day Mega Concert to commemorate Nigeria’s independence. The festival, which promises to propagate responsible drinking among drinking-age (which is 18 years and above) consumers at all its touch points, will be held at the Waterfront Bar Beach grounds, Eko Atlantic to give it a carnival atmosphere. Nigeria beer industry has continued to grow, with the recent investment of over $250 million by International Breweries Plc, a member of ABInBev. The investment was seen as capable of launching the company as a serious contender which will likely control a larger chunk of the market share in the future.The company, which could not participate in the Beer Festival last year, is however set for a big outing this year. Other companies that graced the event last year included brewing giant, Nigerian Breweries Plc and Guinness Nigeria Plc. Others included Campari and lots of entertainment providers.

Ecobank Announces Winners

Nala, Virtual Identity and Wallet.ng dazzle have been adjudged the three winners of the competition Ecobank fintech challenge. All 11 finalists were officially inducted into the Ecobank Fintech Fellowship programme to explore commercial partnerships with the pan-African banking giant. The winners of the 2018 Ecobank Fintech Challenge were announced at a ceremony held in Lome, Togo recently. Nala, from Tanzania, beat the 10 other finalists to emerge as the overall winner of the competition. Virtual Identity from South Africa and Wallet.ng from Nigeria were the first and second runners up.They won cash prizes worth US$10,0000, $7,000 and US$5,000 respectively. Nala, based in Tanzania, is a mobile money application that works offline, without an internet connection. Nala provides a unified user experience in which multiple financial services can be connected on one application. It can host multiple SIMs, enabing users to manage their spending and take control of their finances. The second placed Virtual Identity is an innovative platform designed to disrupt traditional customer onboarding for banks. The process is fully digital, creating a virtual video conferencing link between the agent and the customer.

“If you do not file your returns and you are in constant default, we use turnover as a basis of estimating your tax liability. For example, if your turnover is N100 million, we assume that 20 per cent of that is profit and we tax that at 30 per cent”

Executive Chairman, FIRS, Mr. Babatunde Fowler

T H I S D AY Ëž ÍŻÍŻË&#x153; Í°ÍŽÍŻÍś

BUSINESSWORLD BARKINDO: WHY OPECâ&#x20AC;&#x2122;S ALLIANCE WITH NONMEMBERS HAVE BEEN SUCCESSFUL

ance the oil market, he said: â&#x20AC;&#x153;When we began the Declaration of Cooperation journey in 2016, many doubted that we could achieve our goals. The health of the industry was such that some thought oil market stability would remain elusive forever. â&#x20AC;&#x153;However, throughout our endeavours, we were inspired by the eloquent words of one of this magnificent nationâ&#x20AC;&#x2122;s greatest leaders and our personal hero, Nelson Mandela. â&#x20AC;&#x153;Madiba constantly reminded us during these dark days of the downturn: A winner is a dreamer who never gives up. â&#x20AC;&#x153;Looking to the future, OPEC will never cease to advocate for cooperation, collaboration and fraternity among nations as the best solutions to overcoming challenges, for as the old African proverb teaches us: If you want to go fast, go alone. If you want to go far, go together.â&#x20AC;? NNPC TURNS TO CHINA FOR EXPERTISE IN OILFIELD DEVELOPMENT

of the leading national oil companies making giant strides in the global oil and gas industry, especially in ultra-deep offshore oil exploration. Similarly, CNOOCâ&#x20AC;&#x2122;s Executive Vice Chairman, who signed the MoU on behalf of his corporation, Mr. Fang Zhi, said in the statement, that the development was a milestone for both companies. Zhi, explained: â&#x20AC;&#x153;With this new chapter opening in the history of CNOOCâ&#x20AC;&#x2122;s co-operation with the NNPC, we hope to witness many more future collaborations that will be beneficial to both parties.â&#x20AC;? The statement also quoted the chairman of CNOOC, Mr. Yang Hua, to have said that the firm considered Nigeria as a very strong partner, adding that over $14 billion had been invested by it in Nigeria so far. He noted this was the largest single investment in any country by the Chinese oil giant, and observed that with about 160 oil and gas fields being developed as well as over 200 offshore platforms globally, CNOOC could help Nigeria develop its abundant hydrocarbon resources.

Group Business Editor

Obinna Chima

NEWS

FrieslandCampina to Invest â&#x201A;Ź23m in Local Milk Production Stories by Jonathan Eze Royal FrieslandCampina has announced its decision to invest 23 million euros in local milk production as part of its Dairy Development Programme (DDP) in Nigeria. The companyâ&#x20AC;&#x2122;s chief executive officer, Hein Schumacher disclosed this. Schumacher made the statement in Abuja when he led a delegation on a courtesy visit to Vice President Yemi Osinbajo, at the Presidential Villa. The delegation included the President, Consumer Dairy, Royal FrieslandCampina, The Netherlands, Roel van Neerbos; Managing Director, FrieslandCampina WAMCO Nigeria, Ben Langat; Netherlands Ambassador to Nigeria, Robert Petri; Chairman, FrieslandCampina WAMCO Nigeria, Jacobs Ajekigbe; and Corporate Affairs Director, FrieslandCampina WAMCO, Ore Famurewa. C o m m e n d i n g FrieslandCampina WAMCO for initiating the DDP and thus encouraging other investors to embrace backward integration in the sector, Osinbajo, spoke about the need to develop a robust plan to improve local production across the country. He said: â&#x20AC;&#x153;The plan of extending the dairy development programme to other states is extremely important. I think that backward integration is crucial. My worry is the lack of incentives for

backward integration.â&#x20AC;? Speaking to journalists at the State House afterwards, Schumacher explained: â&#x20AC;&#x153;The Vice President asked us to continue to invest in local dairy farming to increase local production of milk and we are fully aligned with his request. We will take forward the programmes we have been running and expand them. â&#x20AC;&#x153;We are investing around 23 million euros in our evaporated milk and ready-

to-drink milk factory in order to provide fresh milk for the Nigerian consumer. FrieslandCampina WAMCO has been successful with dairy development in recent years and milk yield is improvingâ&#x20AC;? Schumacher said. Highlighting the milestones of the DDP, Langat explained that, â&#x20AC;&#x153;four model farms with crossbreed cows have been established to improve local milk collection across its five milk collection centres.â&#x20AC;?

â&#x20AC;&#x153;Our Company is fully committed to working with local farmers to grow local milk production and ultimately ensure that Nigerians continue to benefit from the nutritious content of milk.â&#x20AC;? Langat added: â&#x20AC;&#x153;Working with 3,500 dairy farmers in over 90 farming communities in Oyo State, we are already providing the required knowledge transfer and sustainable livelihoods for communities. We plan

to transform additional 500 pastoralists to settled dairy farmers under the DDP model. â&#x20AC;&#x153;Already over 100,000 people have been positively impacted around these communities. Osinbajo, however assured the company of the federal governmentâ&#x20AC;&#x2122;s readiness to support it to actualise set business objectives while urging for better synergy between the public and private sectors.

SUPPORTING INNOVATION

L-R: Managing Director, South-south Innovation Hub, Oluwatobi Gege and Edo State Focal Person, National Social Investment Programme, Osayuwamen Oladeselu, at the Innovation Hub, in Benin, Edo State...recently

SON Harmonises Standards to Boost Honey Production The Standards Organisation of Nigeria (SON) in conjunction with the African Organisation for Standardisation (ARSO), has harmonised standards to boost honey production in Nigeria as well as in Africa. The agency pointed out the need for African countries to trade more with each other, maintaining that honey producers must adhere strictly to standards in a bid to meet expectations of consumers at the global market, while also producing quality products for the domestic market. The Director General, SON, Osita Aboloma, at a technical meeting in Lagos recently, said Nigerian honey is one of the best in the world because of its organic nature and highly sought after. He pointed out that according to report put together by officials of the Federal Ministry of Agriculture and

Rural Development, Nigerian Export Promotion Council and apiculture (beekeeping) experts, Nigeria spends about $2 billion annually importing honey and consumes about 400,000 tonnes of honey annually but produces less than 10 per cent of its total consumption. â&#x20AC;&#x153;ARSO is harmonising standards on honey. We are bringing standards from different countries to have one standard for Africa as far as honey is concerned. â&#x20AC;&#x153;We noticed that people are not producing honey the way it should be done. We notice that honey producers are not bold enough to sell their products outside the shores of the country because they have not been able to meet the minimum requirements of the standards. â&#x20AC;&#x153;With this harmonisation coming up and the standards that will come out of this

document, we will help honey producers to use standards to get it right and be able to have their products exported to the international market. The essence of this harmonisation project is to boost intra African trade and outside the continent,â&#x20AC;? the SON boss said. He added that the review of standard for honey became imperative because of the low yields from local farmers due to primitive methods of farming. â&#x20AC;&#x153;This means that national food production is less than national food consumption, which by implication swells the national import bill by staggering figures to billions of dollars,â&#x20AC;? he said. The SON boss, represented by the Director, Standards, SON, Chinyere Egwuonwu, explained that there are lots of benefits for honey producers to adopt standards for producing honey as it would give

them the confidence to export their products with the right channel, stressing that and by so doing, it would boost the productivity and volumes of honey produced and exported. He said SON had developed standards for rice to ensure that the right seeds are planted, saying that the standards body has also gone ahead to develop a code of practice along the rice value chain from planting to harvesting, transporting and packaging of rice. He pointed out that developing standards for agriculture, was key to IITAâ&#x20AC;&#x2122;s programmes in ensuring that Nigerians and Africans get quality staple crops for improved nourishment. He said: â&#x20AC;&#x153;We have taken these standards to the grass root through pictorial materials, because standards are technical documents, so we had to break it down to pictorials where they can use to identify the steps to

produce their goods to meet international standards. â&#x20AC;&#x153;SON is available for anyone especially the SMEs to grow, we are partners in progress and we have put facilities in place to help them grow and survive in this harsh business environment. We have also gone ahead to subsidise so many of our activities.â&#x20AC;? He also urged small and medium scale enterprises to apply standards in their activities to grow their businesses, saying that plans were on the way to work with Agricultural Development People (ADPs) in various states to take standardisation to the grass roots. â&#x20AC;&#x153;We must do things right to move ahead from where we are. As SMEs they must use our standards to grow their businesses, we have State offices across the country to provide technical assistance to SMEs to make them competitive,â&#x20AC;? he said.

Capital Market Editor

Goddy Egene

AgriBusiness/Industry Editor

Jonathan Eze

Comms/e-Business Editor

Emma Okonji

Senior Correspondent

Raheem Akingbolu (Advertising) Correspondents

Chinedu Eze (Aviation) Linda Eroke (Labour) Eromosele Abiodun (Cap Mkt) Ejiofor Alike (Energy) James Emejo (Nationâ&#x20AC;&#x2122;s Capital) Chineme Okafor (Energy) Ebere Nworji (Insurance) Reporters

Nume Ekeghe (Money Market) Nosa Alekhuogie (e-Business

50,000 EEDC Customers Get Meters in Eight Months The Enugu Electricity Distribution Company (EEDC) has reiterated its commitment to meter its customers, saying that it is in its best interest to do so. This was made known to journalists in Enugu by the Head of Communications, EEDC, Mr. Emeka Ezeh. Ezeh said that between January and August 2018, the company has metered about

50,000 electricity consumers across its franchise area with prepaid meters, bringing the total number of its prepaid customers to about 190,000. â&#x20AC;&#x153;Our metering department is working assiduously to meter as many customers as possible. We have committed both human and financial resources to ensure the success of

this project. â&#x20AC;&#x153;It is an aspect of our operation which we believe so much in; and these meters as well as its installation are delivered to our customers at no cost,â&#x20AC;? he said. Ezeh appealed to customers to be patient and also appreciate the efforts made in the provision of meters,

stressing that metering is a process, and there is no way all customers can be metered at the same time. â&#x20AC;&#x153;With the wide metering gap which we inherited, all we ask for is patience and understanding from our customersâ&#x20AC;?. Metering is our commitment and we are on course. â&#x20AC;&#x153;Another area where we

are experience challenge is in the area of meter bypass. We appeal to those customers bypassing their meter to desist from such, as it impacts negatively in our operation. â&#x20AC;&#x153;There is a high prevalence of meter bypass within our network and that is a source of concern for us as a business,â&#x20AC;? he said.

T H I S D AY ˾ SEPTEMBER 11, 2018

BUSINESSWORLD

BeyondtheBeat CHIKA AMANZE-NWACHUKU

Tel: 08033294157, 08057161321 Email: chika.amanzenwachukwu@thisdaylive.com

Oil Sector and Buhari’s Sky-scraping Campaign Promises It is no longer news that the key to winning elections the world over is to make tall promises. Politicians promise to cure virtually all the ills of the society during their electioneering campaigns- abolish corruption, bring about vast improvements in the economy, boost electricity, revamp education sector, address infrastructure and employment problems but oftentimes renege in their promises. Nigerian politicians are also guilty of this. They make lofty campaign promises but fail to ensure that such promises are redeemed. President Muhammadu Buhari had exploited the sentiments of Nigerians who were taken in by his tall promises during the 2015 presidential election and had voted for him. His campaign, which ran on a ‘CHANGE’ mantra promised a clear list of things to get done over his four year tenure. Buhari had vowed to make Nigeria corruption-free, solve the long-running electricity problems, create employment opportunities, reform the oil and gas sector, address the huge infrastructure gap, boost the economy etc, but he has failed to redeem his campaign promises. Amid criticisms from all quarters that the Buhari-led government has failed Nigerians woefully, the President has pronounced himself happy with the achievement recorded by his administration. Also, loads of his administration officials often give the impression that Buhari has made giant strides in his more than three years in office. The truth is that the gap between Buhari’s lofty promises and actual policies that will deliver on these promises is large and growing and this is gradually weakening the institution of the presidency itself. Buhari’s government, which came into power in May, 2015 has been disastrous parade of broken promises to Nigerians. Instances abound in which his lofty proclamations and promises have not been matched by his actions. A number of such broken campaign promises are captured here:

N3.8 trillion, an indication that the situation has gone from bad to worse. The United Kingdom-funded nongovernmental organisation (NGO) said the estimated financial value of what Nigeria lost through crude oil theft, sabotage and pipeline vandalism in the region, during the period, was higher than the N189.4 billion being the combined allocations to the health and education sectors in the 2018 federal budget. NNRC, which provides policy options to guide government and societies in their use of natural resources to ensure maximum and sustainable returns for citizens, noted that the amount translates to a mere 8.4 per cent of the estimated value of losses from oil theft in 2016 and 2017 alone.

him by the Senate, citing certain provisions he was not comfortable with. President Buhari’s refusal to sign the bill into law has continued to attract criticisms from different quarters, with many positing that his action was capable of bringing his administration “to its knees” since oil is still the mainstay of the economy. Buhari had also vowed to revamp Nigeria’s four refineries to optimum capacity in order to scale down the rate of importation of refined petroleum products. But to this day, the refineries are still comatose and Nigeria still imports almost all her petroleum products from other countries, with attendant huge costs. In June, NNPC’s Chief Operating Officer (COO), Upstream, Alhaji Bello Rabiu had disclosed that Nigeria “is the only member country in the Organisation of Petroleum

Oil Sector Reform On assumption of office in May, 2015, President Buhari had vowed that his administration would undertake far-reaching reforms to ensure accountability and transparency in Nigeria’s oil and gas industry. He had promised to expedite the passage of the much-delayed Petroleum Industry Bill (PIB) to shore up oil production and boost national income from oil sales. This commitment had been reiterated in the federal government’s short and mediumterm priorities to grow Nigeria’s oil & gas industry 2015–2019, meaning that the bill ought to have been passed in the first quarter of 2017. The Senate had to split the PIB, which has been in the works for about 12 years into four parts for expeditious consideration and passage. The Petroleum Industry Governance Bill (PIGB) is first in a series of the proposed bills that constitute the legal framework for the petroleum sector reform of the federal government. The three other bills that are currently undergoing various legislative processes at the National Assembly are the Petroleum Industry Administrative Bill (PIAB), the Petroleum Industry Fiscal Bill (PIFB) and the Petroleum Host Community Bill (PHCB). Activities in the oil and gas sector had been at very low ebb owing to the delay in the PIB passage. So, Nigerians had hoped that assenting to the bill would substantially address the uncertainties that had resulted in loss of revenues, absence of investment and monumental corruption in the industry. But the president has reneged on this promise as he recently withheld his assent to the PIGB, months after it was transmitted to

It is also worthy of note that the Buhari-led government failed to conduct oil licensing round to raise revenue for the country and grow oil production and reserve. Also, marginal oil ﬁeld bid rounds was delayed because Buhari, being the substantive petroleum minister, needed to give approval for the exercise before it could take place. The uncertainties in the oil and gas industry owing to the delay in the passage of the PIB and the lack of incentives from the federal government, led to the unprecedented drop in investment in oil and gas projects in recent years

Buhari Exporting Countries (OPEC) that still imports petrol”. He described as shameful, a situation where Nigeria, Africa’s top oil producer, depends on petrol imports to meet daily needs. Rabiu said that Nigeria imports as much as one million tonnes of PMS every month, ranking it the largest importer of PMS in the world. President Buhari had also promised to modernise the corrupt-ridden Nigerian National Petroleum Corporation (NNPC) and make it ‘the national energy champion’. But for the removal of Dr. Ibe Kachikwu (now Minister of State for Petroleum) and his replacement with Buhari’s man, Maikanti Baru, no meaningful achievement had taken place in the corporation since Buhari came into power. The only thing Baru knows how to do best is to set unrealistic sundry targets. Besides, Buhari had pledged to make the oil industry and Nigeria one of the world’s leading/cutting edge centres for clean oil and gas technology; to fully develop the oil sector’s capacity to absorb more Nigerian new graduates in the labour market; enforce the master plan for oil companies to end gas flaring and put an end to air pollution and damages the communities and people’s health. Nigerians are witnesses that these ambitious promises have not been fulfilled till date. It is also worthy of note that the Buhari-led government failed to conduct oil licensing round to raise revenue for the country and grow oil production and reserve. Also, marginal oil field bid rounds was delayed because Buhari, being the substantive petroleum minister, needed to give approval for the exercise before it could take place. The uncertainties in the oil and gas industry owing to the delay in the passage of the PIB and the lack of incentives from the federal government, led to the unprecedented drop in investment in oil and gas projects in recent years. Also, no new oil finds have been recorded since Buhari assumed office, reflecting a slowdown in exploration activities by oil firms. Consequently, Nigeria’s oil reserves have continued to decline. Crude Oil Theft Crude oil theft in Nigeria has continued unabated since Buhari came into power. It was gathered that hundreds of thousands of barrels of Nigeria’s crude are stolen on a daily basis. A recent report on crude oil theft in Nigeria, released by the Nigeria Natural Resource Charter (NNRC), put the average loss between 2016 and 2017 at approximately

Perennial Low Electricity Supply The Nigeria’s electricity industry is still bedevilled by a plethora of challenges, which have hampered regular power supply to homes and businesses. Amidst the low levels of electricity supply, electricity distribution companies have continued to issue outrageously high levels of estimated electricity bills to customers, while Babatunde Fashola, who supervises the power sector and investors are busy passing buck. Even with generation dropping below 4,000MW despite the rains, Fashola claims that the Buhari administration has made tremendous progress in electricity generation and distribution. The low electricity supply in the country even got worse in the first quarter of 2018 as cumulative power supply reduced to 114,556 MW in the first quarter of 2018, as against 144,054.92MW recorded in the last quarter of 2017. Data from the power generation fact sheet of the Presidential Task Force on power showed that a whopping N37.88 billion was also lost in the first quarter of 2018, as against N38.94 billion recorded in the last quarter of 2017, while gas constraints stood at N55.66 billion as against N32.51 billion within the period under review respectively. Checks also revealed that many startups have gone into extinction in the last three years due to power shortages. Infrastructural Deﬁcit Aside the power shortages, housing problems, lack of proper water and sanitation infrastructure etc are making Nigerian states unlivable. Inefficiencies in transport logistics such as roads, ports and rail transport have remained major hindrances to Nigeria’s economic development. In fact, the deplorable state of Nigerian roads can best be described as national shame. The bridges are crumbling, the health and education sectors are poorly funded; public schools are not getting the needed maintenance funding. All of these are eliciting concerns that huge funds allocated to these sectors in the annual budgets were diverted into private pockets despite Buhari’s promise to make Nigeria corrupt-free. Porous Borders The inability of one of Buhari’s right-hand man, Hameed Ali, the Comptroller-General of Nigeria Customs Service (NCS), to effectively man the borders, has resulted in the influx of small arms and light weapons into Nigeria from other countries. Owing to heightened corruption and institutional laxity, Nigeria has now become the dumping ground for illicit weapons and substandard goods. Transnational crimes - drug trafficking, money laundering, arms and human trafficking, all of which are combining with several other factors to undermine the nation’s security, are the fallout of a weak government.

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BUSINESSWORLD

ENERGY

Resetting the Electricity Market for Improved Performance With the failure of the federal government and the private investors to fulfil their respective obligations in the performance agreement they signed during the power privatisation in 2013, it has become imperative for both parties to reset the electricity market as the initial five-year agreement lapses in November 2018, Ejiofor Alike reports The protracted electric power sector reform which commenced in 2001 was successfully concluded with the hand-over of the power assets to private investors on November 1, 2013. But before the federal government transferred the ownership of the distribution and generation assets to the investors, both parties had signed a performance agreement, which stipulates the obligations of each party within a five-year period, ending November 2018. The power agreement contains the obligations of the federal government in the areas of enthroning market-reflective tariff regime, supply of gas to power generating companies and payment of subsidy to the investors. On the part of the investors, the owners of the distribution assets are required to allocate specific amount of money yearly to upgrade the assets and provide meters to customers. The generation companies are also required to ensure that their machines are up and running such that with the declaration of the Transition Electricity Market (TEM) and the activation of all the vesting contracts agreements, the Gencos will pay for any gas which the Nigerian National Petroleum Corporation (NNPC) is ready to supply but their machines are not in good conditions to take. Also, if the machines of the Gencos are in good conditions to take gas but the NNPC are unable to supply the gas, the federal government is required to pay the Gencos for the power, which the machines should have generated with their available capacity. Under the performance agreement, the federal government agreed to enthrone a cost-reflective tariff regime, pay N100 billion subsidy and hand over the assets to the private investors with clean balance sheets so that they can deliver adequate and sustainable power to customers. On the part of the companies, they are obligated to invest a specific amount yearly to upgrade the assets, reduce commercial and technical losses, install a specific number of meters yearly to ensure that all customers have meters by the end of the first five years. However, five years after the agreement was signed, the federal government has failed to make enough gas available, pay subsidy and enthrone the agreed cost-reflective regime. With the selling price of electricity lower than the actual cost price, the investors are running at huge financial deficits, while some Discos resorted to outrageous estimated billing to meet the running costs. The failure of the federal government to fulfil its obligations under the performance agreement has fuelled serious liquidity crisis in the power sector, which hampered the capacity of the distribution and generation companies to meet their obligations. Even when the Gencos managed to generate power in the face of the challenges, the federal government only pays them a fraction of their monthly invoices because even the World Bank partial guarantee has not guaranteed regular payment to the Gencos. While some Discos approached the banks for credit facilities to boost their assets, they have failed to provide meters as agreed in the performance agreement. It is estimated that the banks are exposed to the tune of over N1 trillion to the power sector. Liquidity Crisis/Inadequate Tariffs A key function of the Nigerian Electricity Regulatory Commission (NERC) as contained in section 32(d) of the Electricity Power Sector Reform (EPSR) Act 2005, is to ensure that the prices charged by licensees are fair to customers and sufficient to allow the licensees to finance their activities and to allow for reasonable earnings for efficient operation. It was in pursuant of this mandate that the authority vested in NERC that the commission established a methodology for regulating electricity prices called the Multi-Year Tariff Order. The MYTO provides a 15-year tariff path for the Nigerian Electricity Industry with minor

reviews each year to reflect changes in a limited number of parameters, such as inflation and gas prices. The MYTO made provision for major reviews every five years, when all inputs are reviewed with stakeholders. The current MYTO, the first, came into effect November 2013. It is a common knowledge that in this first five years under the MYTO, NERC has not implemented the cost reflective tariff as envisaged under the arrangement. â&#x20AC;&#x153;it is unfortunate that five years is coming to a close with NERC yet to implement the key clauses of the five years performance agreement the federal government signed with the DISCOs,â&#x20AC;? an official of a Disco said. The three key areas which have been ignored by the federal government are the cost-reflective tariff regime, a clean debt-free book which Discos

Under the performance agreement, the federal government agreed to enthrone a cost-reďŹ&#x201A;ective tariff regime, pay N100 billion subsidy and hand over the assets to the private investors with clean balance sheets so that they can deliver adequate and sustainable power to customers

were supposed to have inherited in 2013 and the N100 billion annual subventions for two years to bridge the gap between what consumers pay and the actual cost of electricity. Up till this time, the Discos are still being forced to sell their product at an average retail price of N32 per kilowatt hour, for a product that should sell for more than an average retail price of N80 per kilowatt hour. While the federal government has forced the Discos to sell power below the market price, some Discos have resorted to sell at black market price, far higher than the market price, in the form of estimated billing. The implication of this gross underfunding and other fall-outs such as interest charges, electricity marketing stabilisation fund, and historical debts such that as at now the total shortfall in the sector is to the tune of N1.35 trillion and still growing. The current situation is unsustainable and as the first five-year agreement lapses this year, the government needs to come in decisively through NERC by resetting the market and starting afresh. It is obvious that the government has not fulfilled its own side of the bargain, and this has made the other members of the value chain to fail in their obligations. So, it is futile and of no use resorting to blame game. â&#x20AC;&#x153;The only way the distribution end of the value chain can work as envisaged, and by extension, ensure that all other members of the value chain operate effectively and efficiently is for the government to start afresh with the Discos, clean the debt books and commence the implementation of the cost reflective tariff as enunciated in the MYTO,â&#x20AC;? said an official of the Transmission Company of Nigeria (TCN, who spoke to journalists in Lagos. The way out and solution to the power sector underfunding and the Discosâ&#x20AC;&#x2122; current handicap, according to the official who pleaded for anonymity is the immediate commencement of the implementation of the Power Sector Recovery Programme (PSRP) as this is the only panacea to tackling the crisis in the power sector. The PSRP envisions that the market shortfall

will be addressed through an annual federal government budget that will include provisions for fully funding historical and future sector deficit from 2017 to 2021; as well as through the establishment of cost reflective tariffs across the board over the next five years and sooner a bilateral willing buyer/willing seller for premium customers; The market shortfall can also be addressed through the payment assurance facility to be established by the Central Bank of Nigeria (CBN), to support NBET, and other such funding initiatives by the World Bank Group on the one hand, and IFC and MIGA, on the other, up to $2.5billion and $2.7billion respectively. From all indications, it is not in doubt that the 11 electricity distribution companies that invested about N11 trillion to buy the Power Holding Company of Nigeria, (PHCN), distribution assets in 2013 are today in deep crisis owing to acute shortage of funds to invest in infrastructure and expand their operation. Providing prepaid meters for millions of customers has become a big challenge and the entire value chain is crippled by poor funding. Energy experts have suggested that the way forward is to reset the market through cost reflective tariff and not bringing in new investors. â&#x20AC;&#x153;Contemplating bringing in new set of investors now is a wrong-headed approach. In any case, no investor will be willing to commit funds to a business where he cannot charge a cost reflective pricing. The problem is not with the DISCOs investors per se, even though one is suggesting that they are saints. â&#x20AC;&#x153;The problem, however, is with the government and its refusal to live up to its billings. Let the government start afresh, inject funds, allow cost reflective tariff and play by the rules, you will see how investors will be competing to have a foothold in the sector within the first year. It is the only way to go,â&#x20AC;? said an investment analyst. Indeed, as the five-year Performance Agreement which the 11 Discos signed with the federal government lapses, November this year, it has become imperative for the federal government to reset the market and commence a new set of Agreements with the investors, if the nation is desirous of a stable and efficient power sector.

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BUSINESSWORLD

ENERGY

Assessing NBETâ&#x20AC;&#x2122;s N701bn Intervention Chineme Okafor assesses the impact of the Nigerian Bulk Electricity Trading Plc intervention in the power sector Since February 2015, when the Transition Electricity Market (TEM) was introduced in Nigeriaâ&#x20AC;&#x2122;s privatised electricity market, the revenue remittance performance of the electricity Discos saddled with the task of taking electricity to homes and offices in the country and collecting monies from such transactions has reportedly continued to decline on. On several occasions, participants in the power market had to call out the Discos to improve their financial obligations to them, yet the Discosâ&#x20AC;&#x2122; responses to such calls have not improved. This then means the portion of the invoices the Discos pay to the NBET for the energy delivered to them have continued to decline such that the percentage revenue remittance to the NBET by them has remained highly different from the percentage collections they receive from their customers. To better understand the situation, market participants affected by the development explained that the behavior of the Discos posed a threat to the growth and sustainability of the countryâ&#x20AC;&#x2122;s electricity industry. They equally noted the situation worsened in the third quarter of 2016, when a decline in electricity generation levels was noticed and it became obvious the sector was heading for a bad direction. By the estimate of the Nigerian Electricity Regulatory Commission (NERC) in its â&#x20AC;&#x2DC;First Quarter 2018 Nigeria Electricity Supply Industry Performanceâ&#x20AC;&#x2122;, the Discos within the stated period failed to remit a total of N112 billion to the NBET and Market Operator (MO) of the sector in the first quarter of 2018. NERC explained in the latest that the Discos did not remit N97 billion and N15 billion respectively to the Nigerian Bulk Electricity Trading Plc (NBET) and the MO during the period under review. It added that out of the N137 billion invoiced amount to the power firms by the NBET for power sold to them, the Discos only remitted N40 billion, leaving a balance of N97 billion. They also in same quarter, remitted only about N11 billion to the MO out of the N26 billion invoiced amount they got from the MO, leaving a balance of N15 billion. However, the NERC document did not contain other outstanding debts of the Discos to the NBET or the market which is in huge sums and yet to be paid. NBETâ&#x20AC;&#x2122;s Intervention As a systems settlement administrator in the power market, the NBET whose functions does not only include to ensure efficient and transparent settlement of invoices in the market, but also to ensure effective tracking, monitoring and reporting of what was settled, was quick to respond to the situation. From THISDAYâ&#x20AC;&#x2122;s earlier investigations and report of how the financial facility came to be, the management of NBET made inquiries into the possible causes of the declining power generation levels, and then found out that the gas suppliers for three thermal plants in the eastern axis were not going to supply gas for generation because they were being owed huge debt by their customers â&#x20AC;&#x201C; the power Gencos. Following from this discovery, the NBET engaged with the parties involved and then realised the gas suppliers were not receiving payments in tandem with the market performance. The team subsequently swung into action to salvage the situation and prevented a possible collapse of the power sector given that a potential loss of about 1000 megawatts (MW) of electricity from the Gencos was at stake then. Several sessions were held by the NBET and parties involved on the issue to come up with possible solutions that could support the market, prevent national blackout and ensure steady electricity supply. Eventually, it was decided that a loan to support payment for power production was needed at least to help the NBET support the Gencos for the next two years to

Fashola meet its obligations as a systems settlement administration. The outcome from these sessions was the development of the N701.9 billion payment assurance facility. Perhaps, as sort of a stop-gap measure to enable NBET meet its obligations, it was also learnt that the NBET would use the period the facility will last to continue to discuss and explore other considerations for long-term sustainability of the market. Even though it is not an arbitrary amount loaned to NBET by the Central Bank of Nigeria (CBN), the sum was arrived at by considering the historical performance of the countryâ&#x20AC;&#x2122;s electricity market and making a forecast for the two years period, which was between January 2017 and December 2018. The NBET team also designed an implementation plan that will ensure the facility will sustain steady supply of electricity to the national grid by ensuring generation

The NBET which is the manager and administrator of Nigeriaâ&#x20AC;&#x2122;s electricity revenue pool, then assumed management and implementation of the N701.9 billion facility. It amongst other clariďŹ cations on the loan, explained that like all ďŹ nancial loans, it was expected to be paid back to the CBN with interests

companies across the country were considered in its implementation - including hydro plants, and ensuring that monies meant for the gas suppliers was paid directly to them. It also made provisions for operations and maintenance costs of generating plants in the country. Having done this, the NBET then approached the federal government to pitch for a loan to enable it meet its obligation and guarantee minimum payment levels, and this was on March 1, March 2017, approved by the Federal Executive Council (FEC). The FEC according to reports, approved that the NBET borrow the total sum of N701.9 billion from the CBN as a bridge finance to meet its obligations to Gencos for metered electricity they will inject from January 2017 till December 2018. Analysts in their review of the efforts then, told THISDAY that the N701.9 billion facility as a loan to the NBET was an urgent response to avert the gradual loss of generation capacity due to under payments resulting from declining Discos remittance to NBET. It was also learnt the N701.9 billion would be disbursed over a two-year period, and repayable over a 10-year tenor with a two-year moratorium. It also considered that the Discos would ramp up payments they make to NBET within these periods, and noted that the Discos would progressively ramp up payments from an average industry performance of about 30 to 80 per cent by December 2018 because it was the responsibility of the Discos to improve collection efficiency and remittance over the period as they continued to receive steady electricity supply. Administering the Facility When the approval of the N701.9 billion facility was gotten, the NBET reportedly consulted with industry players and market participants including the Gencos and Discos, as well as investors alike, to inform; explain and promote understanding of the facility in the market. This, according to the NBET then was

to ensure the operational effectiveness and success of the payment assurance scheme. It was equally reported that the Discos at one of the sessions made commitments to improve their financial remittances to the NBET and support the payment assurance facility to succeed. The NBET which is the manager and administrator of Nigeriaâ&#x20AC;&#x2122;s electricity revenue pool, then assumed management and implementation of the N701.9 billion facility. It amongst other clarifications on the loan, explained that like all financial loans, it was expected to be paid back to the CBN with interests. How the market has fared with the 701.9 billion According to the NBET, and indeed the Minister of Power, Works and Housing, the N701.9 billion facility has so far ensured that Gencos produce electricity to the national grid despite the odds. It has also ensured that the Gencos continue to receive payment from NBET on metered electricity to enable them to meet their obligations to gas supplies, lenders and also to off-set their operations and maintenance costs. Although the Gencos have complained about their operational difficulties in the market, details of the facility administration which THISDAY obtained indicated the NBET has ensured 80 per cent payment of generation invoices including 90 per cent payment of gas invoices from January 2017 to May 2018 under the facility. Under a very tight market condition, one in which the Discosâ&#x20AC;&#x2122; remittances have remained abysmally low, the facility has however kept the Gencos in operation and gas suppliers in production. However, experts feel this was unhealthy for the market. They pointed to the poor revenue remittance records of the Discos as a reason to believe the countryâ&#x20AC;&#x2122;s electricity market may have been in shambles had the NBET not initiated the payment assurance facility. They said for instance that in December 2017, records from the NBET disclosed that the remittance performances of the Discos dropped to an all-time low of 8.33 per cent, as against the 100 per cent they were supposed to do. The same records explained then that five Discos, comprising Ikeja, Kano, Kaduna, Yola, and Jos, did not remit any money to the NBET, and that it got just N4.47 billion out of the N50.21 billion December invoice it sent to the Discos. Similarly, the NBET in that report indicated that while the total financial shortfall for the month was N49.766 billion, it still paid the Gencos up to 80 per cent of their invoices with support from the N701.9 billion facility. Again, in January 2018, the NBET records showed that just four of the Discos - Abuja; Enugu; Jos; and Yola - paid parts of their invoices to it. It said then that out of N44.85 billion invoice it sent to the Discos in January, only N6.08 billion was received from the four Discos while seven others paid nothing. The remittance for January, it noted, represented 13.58 per cent of the invoice. In view of this, analysts suggested that the proactive, efficient and transparent approach NBET initiated to secure and manage the N701.9 billion facility was good for the survival of the industry, but warned the situations that led to its initiation were still lurking around. They pointed out for instance, that the Discos have not improved on their remittances to the market, neither has the government ensured the conditions of the market have improved. Specifically, they stated that while the NBET may have shown some good capabilities and suitability in managing such performance-based loan for the sector, the best approach to sustain the countryâ&#x20AC;&#x2122;s power market would be to ensure every player, especially the Discos, commit and undertake their operations in accordance with the dictates of the TEM. In addition, they warned that the countryâ&#x20AC;&#x2122;s power sector could still face severe trouble if the payment assurance elapses without the Discosâ&#x20AC;&#x2122; remittance getting better than they are at the moment.

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EROTON E & P COMPANY LIMITED Operator of the OML18 Asset

RC1137060

TENDER OPPORTUNITY FOR PROVISION OF DRILLING AND WORKOVER FISHING SERVICES IN OML 18 (EEP17-0065) NipeX Tender Number: 1000003199 1. Introduction EROTON E&P Company Limited; the operator of NNPC/Eroton JV invites interested and reputable contractors with suitable equipment and relevant experience to tender for the provision of drilling and workover fishing services in OML 18. The Company plans to initiate a field development programme in OML 18 which will necessitate drilling and completion of thirty-six new and workover wells within a three-year period (2018-2021).

2. Scope of Work The Service includes the provision of personnel and equipment required for the execution of drilling and workover fishing services aboard a drilling rig (and/or any other potential unit) operating in OML18 swamp Nigeria, for field development or any other additional Permit Area in which COMPANY has the right to conduct petroleum operations within Nigeria. The contractor shall be responsible for the provision of the following: t 'JTIJOH 5PPMT GPS DBTFE BOE 0QFO IPMF ĂśTIJOH PQFSBUJPOT JODMVEJOH CVU OPU MJNJUFE to, Reverse circulating junk baskets, lead impression blocks, wash pipes, external and internal mechanical and hydraulic cutters, fishing jars and accelerators, bumpers jars, knuckle joints, ditch magnets, rotary mills, section mills, Bowen overshots, overshot extensions and guides, packer retrieving tools, grapples, casing, drill pipe and wireline spears, screw in subs, box taps, taper taps and washover shoes. t 'JTIJOH 5PPMT GPS w w UVCJOH TJ[FT w w ESJMM QJQF w w)FW 8BUF ESJMM QJQFT w w ESJMM DPMMBST BOE w w DBTJOH t 1SPWJTJPO PG FYQFSJFODFE ĂśTIJOH QFSTPOOFM NBUFSJBMT TFSWJDFT FRVJQNFOU BOE spares t 4BGF LFFQJOH PG FRVJQNFOU BOE SFMBUFE NBUFSJBMT PO UIF 3JH BOE CBDL MPBEJOH UP Base. The contract duration shall be for a period of two (2) firm years plus one (1) year optional extension.

3. Mandatory Requirements t

t t t t

5P CF FMJHJCMF GPS UIJT UFOEFS FYFSDJTF JOUFSFTUFE DPOUSBDUPST BSF SFRVJSFE UP CF QSF qualified in the 3.04.11 Fishing services category of the NipeX Joint Qualification (NJQS) Database. All successfully pre-qualified suppliers in this category will receive Invitation to Technical Tender (ITT). 5P EFUFSNJOF JG ZPV BSF QSF RVBMJĂśFE BOE WJFX UIF QSPEVDU TFSWJDF DBUFHPSZ ZPV are listed for: Open http://vendors.nipexjqs.com and access NJQS with your log in details. Click on Products/Services Status tab to view your status and product codes. *G ZPV BSF OPU MJTUFE JO B QSPEVDU TFSWJDF DBUFHPSZ ZPV BSF SFHJTUFSFE XJUI %13 UP do business, contact NipeX office at 8, Bayo Kuku Street, Ikoyi Lagos with your DPR certificate as evidence for verification and necessary update. 5P JOJUJBUF UIF +24 QSF RVBMJĂśDBUJPO QSPDFTT BDDFTT XXX OJQFY OH DPN DMJDL PO services tab followed by NJQS registration. 5P CF FMJHJCMF BMM UFOEFSFST NVTU DPNQMZ XJUI UIF SFRVJSFNFOUT PG UIF /JHFSJBO 0JM and Gas Industry Content Development Act, 2010. Non compliance shall result in disqualification from bidding for this opportunity.

4. Closing Date t

0OMZ 5FOEFSFST XIP BSF SFHJTUFSFE XJUI /+24 1SPEVDU DBUFHPSZ (3.04.11 Fishing services) as at October 02, 2018 being the advert close date shall be invited to submit Technical Bids.

order to achieve the minimum target as set out in the requirements of the NOGICD Act 2010 (80% Man-hour; Other Drilling Services) GPS UIJT QSPKFDU 8IFSF JO country capacity is inadequate, propose innovations to bridge the gap " QMBO PG IPX JU JOUFOET UP HJWF ĂśSTU DPOTJEFSBUJPO UP NBUFSJBMT NBOVGBDUVSFE BT well as assembled goods of Nigerian origin which shall include a breakdown of all NBUFSJBMT BOE DPOTVNBCMFT UP CF VUJMJ[FE BOE JEFOUJGZJOH UIPTF UIBU BSF GPVOE MPDBMMZ finished products and materials that will be procured from Nigerian manufacturing and assembly plants, finished goods that order can be placed from outside Nigeria UISPVHI /JHFSJBO BVUIPSJ[FE WFOEPST BOE BDDSFEJUFE BHFOUT BOE UIPTF UIBU XPVME be directly imported %FUBJMT PG UIF DPNQBOZ T DPSQPSBUF PSHBOJ[BUJPOT PWFSBMM IVNBO SFTPVSDFT structure (management, supervisors, senior and junior skilled officers, etc.), identifying positions manned/occupied by Nigerian nationals with evidence of type of employment in-country and identifying the positions manned/occupied by other nationals 8IFSF UIF CJEEJOH FOUJUZ MBDLT DBQBDJUZ HFOVJOF BMMJBODFT XJUI PUIFS /JHFSJBO companies or multinational companies for the purpose of technology transfer shall be encouraged. The alliance/joint venture shall be executed with binding Memorandum of Agreement (MOA) signed by chief executives of both entities stating clear work-share ratio among the parties and time frame for growth or transfer to be achieved. " EFUBJMFE EFTDSJQUJPO PG UIF MPDBUJPO PG JO DPVOUSZ DPNNJUUFE GBDJMJUJFT BOE infrastructure (assets, equipment, technical office, and administrative space, storage, etc.) in Nigeria to support this contract. 5FOEFSFST UP TVCNJU B EFUBJMFE USBJOJOH QMBO XIJDI TIBMM QSPWJEF TVTUBJOBCMF USBJOJOH and development (including certification as applicable) for Nigerians in line with UIF )VNBO $BQBDJUZ %FWFMPQNFOU *OJUJBUJWF (VJEFMJOF PG UIF /JHFSJBO $POUFOU Development and Monitoring Boardâ&#x20AC;&#x2122;s (NCDMB). The training plan will include contract-specific training and estimated man-hours. Tenderer is required to submit MOA with Oil and Gas Trainers Association of Nigeria (OGTAN) trainers to support UIFJS USBJOJOH QMBO XIJDI TIBMM CF PG UIF QSPKFDU .BO IPVST PS PG UIF UPUBM contract sum. 1SPWJEF FWJEFODF UP TIPX UIBU B NJOJNVN PG PG UIF FRVJQNFOU UP CF EFQMPZFE for the work is owned by the Nigerian subsidiary if international or multinational company is working through the Nigerian subsidiary including equipment list (Tenderer to provide verifiable evidence (purchase receipt, bill of sale, etc.) of ownership of equipment in executing this contract. 1SPWJEF FWJEFODF PG BQQSPWFE /JHFSJBO $POUFOU &RVJQNFOU $FSUJĂśDBUF PS TUBUVT PG the application submitted to NCDMB for the certificate for the procurement of all equipment, systems and packages to be supplied on the contract (where applicable). 8IFSF 5FOEFSFS JOUFOET UP VTF TVCDPOUSBDUPS T TVQQMJFS T 5FOEFSFS TIBMM QSPWJEF same information for the nominated supplier(s)/sub-contractor(s). 10. Detailed specific programmes in place to transfer technology and skills to Nigerian businesses 11. Provide evidence of completed registration on NCDMB NOGICD JQS portal. Note: Land and Swamp operations are exclusively for Nigerian indigenous service DPNQBOJFT UIBU IBWF B NJOJNVN PG FRVJUZ TIBSFIPMEJOH

6. Additional information t t t

5. Nigerian Content Bidders are to note that they will be requested during the technical tender to give full details of their relevant strategy to ensure that they fully comply with provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. Consequently, biddersâ&#x20AC;&#x2122; submissions shall be evaluated strictly with the minimum evaluation criteria EFĂśOFE JO A5IF "DU 'BJMVSF UP NFFU UIF /JHFSJBO $POUFOU SFRVJSFNFOUT JT B â&#x20AC;&#x153;FATAL FLAW.â&#x20AC;? In line with the above, Tenderers responding to this advertisement are required to submit the following in compliance with the Nigerian Content Act, 2010: 1. Demonstrate that the entity is a Nigerian-registered/owned company. Submission PG DFSUJĂśFE USVF DPQJFT PG $"$ GPSNT PS JUT FRVJWBMFOU $"$ etc.) including company memorandum & article of association and other evidence of entityâ&#x20AC;&#x2122;s incorporation, shareholding & ownership structure in Nigeria. %FWFMPQ B /JHFSJBO $POUFOU 1MBO UIBU EFNPOTUSBUFT UIF GVMM VUJMJ[BUJPO PG /JHFSJBO labour and services with detailed description of role, work scope and man-hours in

t t t

*OUFSFTUFE TVQQMJFST NVTU CF QSF RVBMJĂśFE GPS UIJT QSPEVDU TFSWJDF DBUFHPSZ JO /+24 'VMM UFOEFSJOH QSPDFEVSF XJMM CF QSPWJEFE POMZ UP DPOUSBDUPST UIBU IBWF CFFO successfully pre-qualified in NJQS. 5IJT BEWFSUJTFNFOU TIBMM OFJUIFS CF DPOTUSVFE BT BO *OWJUBUJPO UP 5FOEFS *55 OPS a commitment on the part of EROTON to award a contract to any supplier and/or associated companies, subcontractors or agents. 5IJT BEWFSUJTFNFOU TIBMM OPU FOUJUMF QSF RVBMJĂśFE DPNQBOJFT UP NBLF BOZ DMBJNT whatsoever and/ or seek any indemnity from EROTON and/ or its partners by virtue of such companies having been pre-qualified in NJQS. "MM DPTUT JODVSSFE JO SFHJTUFSJOH BOE QSF RVBMJGZJOH GPS UIJT BOE PUIFS QSPEVDUT services categories in NJQS shall be borne solely by suppliers. 4VQQMJFST UIBU BSF QSF RVBMJĂśFE GPS UIJT QSPEVDU TFSWJDF DBUFHPSZ JO /+24 NVTU ensure that the name and contact details (physical address, email address and telephone numbers) of their company and authorised/responsible personnel is up to date in their company profile in the NJQS data base. &3050/ TIBMM DPNNVOJDBUF POMZ XJUI UIF BVUIPSJTFE SFTQPOTJCMF QFSTPOOFM PG QSF qualified companies and not through unauthorised individuals or agents.

Please visit NipeX portal at www.nipex-ng.com for this advert and other information

T H I S D AY หพ TUESDAY SEPTEMBER 11, 2018

EROTON E & P COMPANY LIMITED Operator of the OML18 Asset

RC1137060

TENDER OPPORTUNITY FOR PROVISION OF DRILL STEM TEST AND TUBING CONVEYED PERFORATION SERVICES IN OML 18 (EEP17-0061) NipeX Tender Number: 1000003197 1. Introduction EROTON E&P Company Limited; the operator of NNPC/Eroton JV invites interested and reputable contractors with suitable equipment and relevant experience to tender for the provision of Drill Stem Test and Tubing Conveyed Perforation services in OML 18. The Company plans to initiate a field development programme in OML 18 which will necessitate drilling and completion of thirty-six new and workover wells within a threeyear period (2018-2021).

2. Scope of Work The Service includes the provision of personnel and equipment required for the execution of Drill Stem Test and Tubing Conveyed Perforation services aboard a drilling rig (and/or any other potential unit) operating in OML18 swamp Nigeria, for field development or any other additional Permit Area in which COMPANY has the right to conduct petroleum operations within Nigeria. The contractor shall be responsible for the provision of the following: t %45 5$1 FRVJQNFOU UP QFSGPSN XFMM UFTU TFSWJDFT XIJMF DBQUVSJOH RVBMJUZ EBUB TVDI as bottom-hole pressures and temperatures. t 1FSTPOOFM NBUFSJBMT DPOTVNBCMFT BOE TQBSFT t 3FBM UJNF SFQPSUJOH The contract duration shall be for a period of two (2) firm years plus one (1) year optional extension.

3. Mandatory Requirements t

t t

5P CF FMJHJCMF GPS UIJT UFOEFS FYFSDJTF JOUFSFTUFE DPOUSBDUPST BSF SFRVJSFE UP CF pre-qualified in the 3.04.26 Drill Stem Testing services category of the NipeX Joint Qualification (NJQS) Database. All successfully pre-qualified suppliers in this category will receive Invitation to Technical Tender (ITT). 5P EFUFSNJOF JG ZPV BSF QSF RVBMJรถFE BOE WJFX UIF QSPEVDU TFSWJDF DBUFHPSZ ZPV are listed for: Open http://vendors.nipexjqs.com and access NJQS with your log in details. Click on Products/Services Status tab to view your status and product codes. *G ZPV BSF OPU MJTUFE JO B QSPEVDU TFSWJDF DBUFHPSZ ZPV BSF SFHJTUFSFE XJUI %13 UP do business, contact NipeX office at 8, Bayo Kuku Street, Ikoyi Lagos with your DPR certificate as evidence for verification and necessary update. 5P JOJUJBUF UIF +24 QSF RVBMJรถDBUJPO QSPDFTT BDDFTT XXX OJQFY OH DPN DMJDL PO services tab followed by NJQS registration. 5P CF FMJHJCMF BMM UFOEFSFST NVTU DPNQMZ XJUI UIF SFRVJSFNFOUT PG UIF /JHFSJBO 0JM and Gas Industry Content Development Act, 2010. Non compliance shall result in disqualification from bidding for this opportunity.

4. Closing Date t

0OMZ 5FOEFSFST XIP BSF SFHJTUFSFE XJUI /+24 1SPEVDU DBUFHPSZ (3.04.26 Drill Stem Testing services) as at October 02, 2018 being the advert close date shall be invited to submit Technical Bids.

" QMBO PG IPX JU JOUFOET UP HJWF รถSTU DPOTJEFSBUJPO UP NBUFSJBMT NBOVGBDUVSFE BT well as assembled goods of Nigerian origin which shall include a breakdown of all NBUFSJBMT BOE DPOTVNBCMFT UP CF VUJMJ[FE BOE JEFOUJGZJOH UIPTF UIBU BSF GPVOE MPDBMMZ finished products and materials that will be procured from Nigerian manufacturing and assembly plants, finished goods that order can be placed from outside Nigeria UISPVHI /JHFSJBO BVUIPSJ[FE WFOEPST BOE BDDSFEJUFE BHFOUT BOE UIPTF UIBU XPVME be directly imported %FUBJMT PG UIF DPNQBOZ T DPSQPSBUF PSHBOJ[BUJPOT PWFSBMM IVNBO SFTPVSDFT structure (management, supervisors, senior and junior skilled officers, etc.), identifying positions manned/occupied by Nigerian nationals with evidence of type of employment in-country and identifying the positions manned/occupied by other nationals 8IFSF UIF CJEEJOH FOUJUZ MBDLT DBQBDJUZ HFOVJOF BMMJBODFT XJUI PUIFS /JHFSJBO companies or multinational companies for the purpose of technology transfer shall be encouraged. The alliance/joint venture shall be executed with binding Memorandum of Agreement (MOA) signed by chief executives of both entities stating clear work-share ratio among the parties and time frame for growth or transfer to be achieved. " EFUBJMFE EFTDSJQUJPO PG UIF MPDBUJPO PG JO DPVOUSZ DPNNJUUFE GBDJMJUJFT BOE infrastructure (assets, equipment, technical office, and administrative space, storage, etc.) in Nigeria to support this contract. 5FOEFSFST UP TVCNJU B EFUBJMFE USBJOJOH QMBO XIJDI TIBMM QSPWJEF TVTUBJOBCMF USBJOJOH and development (including certification as applicable) for Nigerians in line with UIF )VNBO $BQBDJUZ %FWFMPQNFOU *OJUJBUJWF (VJEFMJOF PG UIF /JHFSJBO $POUFOU Development and Monitoring Boardโ s (NCDMB). The training plan will include contract-specific training and estimated man-hours. Tenderer is required to submit MOA with Oil and Gas Trainers Association of Nigeria (OGTAN) trainers to support UIFJS USBJOJOH QMBO XIJDI TIBMM CF PG UIF QSPKFDU .BO IPVST PS PG UIF UPUBM contract sum. 1SPWJEF FWJEFODF UP TIPX UIBU B NJOJNVN PG PG UIF FRVJQNFOU UP CF EFQMPZFE for the work is owned by the Nigerian subsidiary if international or multinational company is working through the Nigerian subsidiary including equipment list (Tenderer to provide verifiable evidence (purchase receipt, bill of sale, etc.) of ownership of equipment in executing this contract. 1SPWJEF FWJEFODF PG BQQSPWFE /JHFSJBO $POUFOU &RVJQNFOU $FSUJรถDBUF PS TUBUVT PG the application submitted to NCDMB for the certificate for the procurement of all equipment, systems and packages to be supplied on the contract (where applicable). 8IFSF 5FOEFSFS JOUFOET UP VTF TVCDPOUSBDUPS T TVQQMJFS T 5FOEFSFS TIBMM QSPWJEF same information for the nominated supplier(s)/sub-contractor(s). 10. Detailed specific programmes in place to transfer technology and skills to Nigerian businesses 11. Provide evidence of completed registration on NCDMB NOGICD JQS portal. Note: Land and Swamp operations are exclusively for Nigerian indigenous service DPNQBOJFT UIBU IBWF B NJOJNVN PG FRVJUZ TIBSFIPMEJOH

6. Additional information t t

5. Nigerian Content Bidders are to note that they will be requested during the technical tender to give full details of their relevant strategy to ensure that they fully comply with provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. Consequently, biddersโ submissions shall be evaluated strictly with the minimum evaluation criteria EFรถOFE JO A5IF "DU 'BJMVSF UP NFFU UIF /JHFSJBO $POUFOU SFRVJSFNFOUT JT B โ FATAL FLAW.โ In line with the above, Tenderers responding to this advertisement are required to submit the following in compliance with the Nigerian Content Act, 2010: 1. Demonstrate that the entity is a Nigerian-registered/owned company. Submission PG DFSUJรถFE USVF DPQJFT PG $"$ GPSNT PS JUT FRVJWBMFOU $"$ etc.) including company memorandum & article of association and other evidence of entityโ s incorporation, shareholding & ownership structure in Nigeria. %FWFMPQ B /JHFSJBO $POUFOU 1MBO UIBU EFNPOTUSBUFT UIF GVMM VUJMJ[BUJPO PG /JHFSJBO labour and services with detailed description of role, work scope and man-hours in order to achieve the minimum target as set out in the requirements of the NOGICD Act 2010 (90% Man-hour; Perforation Services) GPS UIJT QSPKFDU 8IFSF JO DPVOUSZ capacity is inadequate, propose innovations to bridge the gap

t t

*OUFSFTUFE TVQQMJFST NVTU CF QSF RVBMJรถFE GPS UIJT QSPEVDU TFSWJDF DBUFHPSZ JO /+24 'VMM UFOEFSJOH QSPDFEVSF XJMM CF QSPWJEFE POMZ UP DPOUSBDUPST UIBU IBWF CFFO successfully pre-qualified in NJQS. 5IJT BEWFSUJTFNFOU TIBMM OFJUIFS CF DPOTUSVFE BT BO *OWJUBUJPO UP 5FOEFS *55 OPS a commitment on the part of EROTON to award a contract to any supplier and/or associated companies, subcontractors or agents. 5IJT BEWFSUJTFNFOU TIBMM OPU FOUJUMF QSF RVBMJรถFE DPNQBOJFT UP NBLF BOZ DMBJNT whatsoever and/ or seek any indemnity from EROTON and/ or its partners by virtue of such companies having been pre-qualified in NJQS. "MM DPTUT JODVSSFE JO SFHJTUFSJOH BOE QSF RVBMJGZJOH GPS UIJT BOE PUIFS QSPEVDUT services categories in NJQS shall be borne solely by suppliers. 4VQQMJFST UIBU BSF QSF RVBMJรถFE GPS UIJT QSPEVDU TFSWJDF DBUFHPSZ JO /+24 NVTU ensure that the name and contact details (physical address, email address and telephone numbers) of their company and authorised/responsible personnel is up to date in their company profile in the NJQS data base. &3050/ TIBMM DPNNVOJDBUF POMZ XJUI UIF BVUIPSJTFE SFTQPOTJCMF QFSTPOOFM PG QSF qualified companies and not through unauthorised individuals or agents.

Please visit NipeX portal at www.nipex-ng.com for this advert and other information

T H I S D AY Ëž ÍŻÍŻË&#x153; Í°ÍŽÍŻÍś

EROTON E & P COMPANY LIMITED Operator of the OML18 Asset

RC1137060

TENDER OPPORTUNITY FOR PROVISION OF S-90 HYDRAULIC HAMMER AND SERVICES IN OML 18 (EEP17-0023) NipeX Tender Number: 1000003296 1. Introduction EROTON E&P Company Limited; the operator of NNPC/Eroton JV invites interested and reputable contractors with suitable equipment and relevant experience to tender for the QSPWJTJPO PG IZESBVMJD IBNNFS BOE TFSWJDFT JO 0.- 5IF $PNQBOZ QMBOT UP JOJUJBUF B field development programme in OML 18 which will necessitate drilling and completion of thirty-six new and workover wells within a three-year period (2018-2021).

2. Scope of Work The scope includes the provision of personnel and equipment required for the execution of hydraulic hammer and services for Eroton wells in OML18 swamp Nigeria or any other additional Permit Area in which COMPANY has the right to conduct petroleum operations within Nigeria. The contractor shall be responsible for the provision of the following: t 4 )ZESBVMJD IBNNFS PS FRVJWBMFOU t 1FSTPOOFM NBUFSJBMT DPOTVNBCMFT BOE TQBSFT BOE SVOOJOH UPPMT GPS ESJWJOH w w drive pipes t 3FBM UJNF SFQPSUJOH The contract duration shall be for a period of two (2) firm years plus one (1) year optional extension.

3. Mandatory Requirements t

t t t t

5P CF FMJHJCMF GPS UIJT UFOEFS FYFSDJTF JOUFSFTUFE DPOUSBDUPST BSF SFRVJSFE UP CF pre-qualified in the 3.04.02 Conductor Piling Services category of the NipeX Joint Qualification (NJQS) Database. All successfully pre-qualified suppliers in this category will receive Invitation to Technical Tender (ITT). 5P EFUFSNJOF JG ZPV BSF QSF RVBMJĂśFE BOE WJFX UIF QSPEVDU TFSWJDF DBUFHPSZ ZPV are listed for: Open http://vendors.nipexjqs.com and access NJQS with your log in details. Click on Products/Services Status tab to view your status and product codes. *G ZPV BSF OPU MJTUFE JO B QSPEVDU TFSWJDF DBUFHPSZ ZPV BSF SFHJTUFSFE XJUI %13 UP do business, contact NipeX office at 8, Bayo Kuku Street, Ikoyi Lagos with your DPR certificate as evidence for verification and necessary update. 5P JOJUJBUF UIF +24 QSF RVBMJĂśDBUJPO QSPDFTT BDDFTT XXX OJQFY OH DPN DMJDL PO services tab followed by NJQS registration. 5P CF FMJHJCMF BMM UFOEFSFST NVTU DPNQMZ XJUI UIF SFRVJSFNFOUT PG UIF /JHFSJBO 0JM and Gas Industry Content Development Act, 2010. Non compliance shall result in disqualification from bidding for this opportunity.

4. Closing Date t

0OMZ 5FOEFSFST XIP BSF SFHJTUFSFE XJUI /+24 1SPEVDU DBUFHPSZ (3.04.02 Conductor Piling services) as at October 02, 2018 being the advert close date shall be invited to submit Technical Bids.

5. Nigerian Content

UISPVHI /JHFSJBO BVUIPSJ[FE WFOEPST BOE BDDSFEJUFE BHFOUT BOE UIPTF UIBU XPVME be directly imported %FUBJMT PG UIF DPNQBOZ T DPSQPSBUF PSHBOJ[BUJPOT PWFSBMM IVNBO SFTPVSDFT TUSVDUVSF (management, supervisors, senior and junior skilled officers, etc.), identifying positions manned/occupied by Nigerian nationals with evidence of type of employment in-country and identifying the positions manned/occupied by other nationals 8IFSF UIF CJEEJOH FOUJUZ MBDLT DBQBDJUZ HFOVJOF BMMJBODFT XJUI PUIFS /JHFSJBO companies or multinational companies for the purpose of technology transfer shall be encouraged. The alliance/joint venture shall be executed with binding Memorandum of Agreement (MOA) signed by chief executives of both entities stating clear work-share ratio among the parties and time frame for growth or transfer to be achieved. " EFUBJMFE EFTDSJQUJPO PG UIF MPDBUJPO PG JO DPVOUSZ DPNNJUUFE GBDJMJUJFT BOE infrastructure (assets, equipment, technical office, and administrative space, storage, etc.) in Nigeria to support this contract. 5FOEFSFST UP TVCNJU B EFUBJMFE USBJOJOH QMBO XIJDI TIBMM QSPWJEF TVTUBJOBCMF USBJOJOH and development (including certification as applicable) for Nigerians in line with UIF )VNBO $BQBDJUZ %FWFMPQNFOU *OJUJBUJWF (VJEFMJOF PG UIF /JHFSJBO $POUFOU Development and Monitoring Boardâ&#x20AC;&#x2122;s (NCDMB). The training plan will include contract-specific training and estimated man-hours. Tenderer is required to submit MOA with Oil and Gas Trainers Association of Nigeria (OGTAN) trainers to support UIFJS USBJOJOH QMBO XIJDI TIBMM CF PG UIF QSPKFDU .BO IPVST PS PG UIF UPUBM contract sum. 1SPWJEF FWJEFODF UP TIPX UIBU B NJOJNVN PG PG UIF FRVJQNFOU UP CF EFQMPZFE for the work is owned by the Nigerian subsidiary if international or multinational company is working through the Nigerian subsidiary including equipment list (Tenderer to provide verifiable evidence (purchase receipt, bill of sale, etc.) of ownership of equipment in executing this contract. 1SPWJEF FWJEFODF PG BQQSPWFE /JHFSJBO $POUFOU &RVJQNFOU $FSUJĂśDBUF PS TUBUVT PG the application submitted to NCDMB for the certificate for the procurement of all equipment, systems and packages to be supplied on the contract (where applicable). 8IFSF 5FOEFSFS JOUFOET UP VTF TVCDPOUSBDUPS T TVQQMJFS T 5FOEFSFS TIBMM QSPWJEF same information for the nominated supplier(s)/sub-contractor(s). 10. All bidders for a project/contract/service with a completion period of 12 months or more are required to submit as part of the Nigerian Content requirement, a signed Memorandum of Agreement (MOA) between it and one of the research and development (R&D) Clusters established by the Nigerian Content Development and Monitoring Board (NCDMB). The MOA shall be relevant to the project and shall indicate how the bidder intends to use the relevant R&D Clusters during project FYFDVUJPOw 11. Detailed specific programmes in place to transfer technology and skills to Nigerian businesses 12. Provide evidence of completed registration on NCDMB NOGICD JQS portal. Note: Land and Swamp operations are exclusively for Nigerian indigenous service DPNQBOJFT UIBU IBWF B NJOJNVN PG FRVJUZ TIBSFIPMEJOH

Bidders are to note that they will be requested during the technical tender to give full details of their relevant strategy to ensure that they fully comply with provisions of the 6. Additional information Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. Consequently, t *OUFSFTUFE TVQQMJFST NVTU CF QSF RVBMJĂśFE GPS UIJT QSPEVDU TFSWJDF DBUFHPSZ JO /+24 biddersâ&#x20AC;&#x2122; submissions shall be evaluated strictly with the minimum evaluation criteria EFĂśOFE JO A5IF "DU 'BJMVSF UP NFFU UIF /JHFSJBO $POUFOU SFRVJSFNFOUT JT B â&#x20AC;&#x153;FATAL FLAW.â&#x20AC;? t 'VMM UFOEFSJOH QSPDFEVSF XJMM CF QSPWJEFE POMZ UP DPOUSBDUPST UIBU IBWF CFFO successfully pre-qualified in NJQS. In line with the above, Tenderers responding to this advertisement are required to submit the following in compliance with the Nigerian Content Act, 2010: t 5IJT BEWFSUJTFNFOU TIBMM OFJUIFS CF DPOTUSVFE BT BO *OWJUBUJPO UP 5FOEFS *55 OPS a commitment on the part of EROTON to award a contract to any supplier and/or 1. Demonstrate that the entity is a Nigerian-registered/owned company. Submission associated companies, subcontractors or agents. PG DFSUJĂśFE USVF DPQJFT PG $"$ GPSNT PS JUT FRVJWBMFOU $"$ etc.) including company memorandum & article of association and other evidence t 5IJT BEWFSUJTFNFOU TIBMM OPU FOUJUMF QSF RVBMJĂśFE DPNQBOJFT UP NBLF BOZ DMBJNT of entityâ&#x20AC;&#x2122;s incorporation, shareholding & ownership structure in Nigeria. whatsoever and/ or seek any indemnity from EROTON and/ or its partners by virtue of such companies having been pre-qualified in NJQS. %FWFMPQ B /JHFSJBO $POUFOU 1MBO UIBU EFNPOTUSBUFT UIF GVMM VUJMJ[BUJPO PG /JHFSJBO labour and services with detailed description of role, work scope and man-hours in t "MM DPTUT JODVSSFE JO SFHJTUFSJOH BOE QSF RVBMJGZJOH GPS UIJT BOE PUIFS QSPEVDUT order to achieve the minimum target as set out in the requirements of the NOGICD services categories in NJQS shall be borne solely by suppliers. Act 2010 (80% Man-hour; Other Drilling Services) GPS UIJT QSPKFDU 8IFSF JO t 4VQQMJFST UIBU BSF QSF RVBMJĂśFE GPS UIJT QSPEVDU TFSWJDF DBUFHPSZ JO /+24 NVTU country capacity is inadequate, propose innovations to bridge the gap ensure that the name and contact details (physical address, email address and " QMBO PG IPX JU JOUFOET UP HJWF ĂśSTU DPOTJEFSBUJPO UP NBUFSJBMT NBOVGBDUVSFE BT telephone numbers) of their company and authorised/responsible personnel is up well as assembled goods of Nigerian origin which shall include a breakdown of all to date in their company profile in the NJQS data base. NBUFSJBMT BOE DPOTVNBCMFT UP CF VUJMJ[FE BOE JEFOUJGZJOH UIPTF UIBU BSF GPVOE MPDBMMZ t &3050/ TIBMM DPNNVOJDBUF POMZ XJUI UIF BVUIPSJTFE SFTQPOTJCMF QFSTPOOFM PG QSF finished products and materials that will be procured from Nigerian manufacturing qualified companies and not through unauthorised individuals or agents. and assembly plants, finished goods that order can be placed from outside Nigeria

Please visit NipeX portal at www.nipex-ng.com for this advert and other information

T H I S D AY หพ TUESDAY SEPTEMBER 11, 2018

EROTON E & P COMPANY LIMITED Operator of the OML18 Asset

RC1137060

TENDER OPPORTUNITY FOR PROVISION OF WELL COMPLETION EQUIPMENT AND SERVICES IN OML 18 (EEP17-0059) NipeX Tender Number: 1000003186 1. Introduction EROTON E&P Company Limited; the operator of NNPC/Eroton JV invites interested and reputable contractors with suitable equipment and relevant experience to tender for the provision of completion equipment and services in OML 18. The Company plans to initiate a field development programme in OML 18 which will necessitate drilling and completion of thirty-six new and workover wells within a three-year period (2018-2021).

2. Scope of Work The Service includes the provision of personnel and equipment required for the execution of completion equipment and services aboard a drilling rig (and/or any other potential unit) operating in OML18 swamp Nigeria or any other additional Permit Area in which COMPANY has the right to conduct petroleum operations within Nigeria. The contractor shall be responsible for the provision of the following: t $PNQMFUJPO FRVJQNFOU BOE TFSWJDFT t 1FSTPOOFM NBUFSJBMT DPOTVNBCMFT BOE TQBSFT t 3FBM UJNF SFQPSUJOH The contract duration shall be for a period of two (2) firm years plus one (1) year optional extension.

3. Mandatory Requirements t

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5P CF FMJHJCMF GPS UIJT UFOEFS FYFSDJTF JOUFSFTUFE DPOUSBDUPST BSF SFRVJSFE UP CF pre-qualified in the 3.04.17 Well Completion Services category of the NipeX Joint Qualification (NJQS) Database. All successfully pre-qualified suppliers in this category will receive Invitation to Technical Tender (ITT). 5P EFUFSNJOF JG ZPV BSF QSF RVBMJรถFE BOE WJFX UIF QSPEVDU TFSWJDF DBUFHPSZ ZPV are listed for: Open http://vendors.nipexjqs.com and access NJQS with your log in details. Click on Products/Services Status tab to view your status and product codes. *G ZPV BSF OPU MJTUFE JO B QSPEVDU TFSWJDF DBUFHPSZ ZPV BSF SFHJTUFSFE XJUI %13 UP do business, contact NipeX office at 8, Bayo Kuku Street, Ikoyi Lagos with your DPR certificate as evidence for verification and necessary update. 5P JOJUJBUF UIF +24 QSF RVBMJรถDBUJPO QSPDFTT BDDFTT XXX OJQFY OH DPN DMJDL PO services tab followed by NJQS registration. 5P CF FMJHJCMF BMM UFOEFSFST NVTU DPNQMZ XJUI UIF SFRVJSFNFOUT PG UIF /JHFSJBO 0JM and Gas Industry Content Development Act, 2010. Non compliance shall result in disqualification from bidding for this opportunity.

4. Closing Date t

0OMZ 5FOEFSFST XIP BSF SFHJTUFSFE XJUI /+24 1SPEVDU DBUFHPSZ (3.04.17 Well Completion services) as at October 02, 2018 being the advert close date shall be invited to submit Technical Bids.

NBUFSJBMT BOE DPOTVNBCMFT UP CF VUJMJ[FE BOE JEFOUJGZJOH UIPTF UIBU BSF GPVOE MPDBMMZ finished products and materials that will be procured from Nigerian manufacturing and assembly plants, finished goods that order can be placed from outside Nigeria UISPVHI /JHFSJBO BVUIPSJ[FE WFOEPST BOE BDDSFEJUFE BHFOUT BOE UIPTF UIBU XPVME be directly imported %FUBJMT PG UIF DPNQBOZ T DPSQPSBUF PSHBOJ[BUJPOT PWFSBMM IVNBO SFTPVSDFT TUSVDUVSF (management, supervisors, senior and junior skilled officers, etc.), identifying positions manned/occupied by Nigerian nationals with evidence of type of employment in-country and identifying the positions manned/occupied by other nationals 8IFSF UIF CJEEJOH FOUJUZ MBDLT DBQBDJUZ HFOVJOF BMMJBODFT XJUI PUIFS /JHFSJBO companies or multinational companies for the purpose of technology transfer shall be encouraged. The alliance/joint venture shall be executed with binding Memorandum of Agreement (MOA) signed by chief executives of both entities stating clear work-share ratio among the parties and time frame for growth or transfer to be achieved. " EFUBJMFE EFTDSJQUJPO PG UIF MPDBUJPO PG JO DPVOUSZ DPNNJUUFE GBDJMJUJFT BOE infrastructure (assets, equipment, technical office, and administrative space, storage, etc.) in Nigeria to support this contract. 5FOEFSFST UP TVCNJU B EFUBJMFE USBJOJOH QMBO XIJDI TIBMM QSPWJEF TVTUBJOBCMF USBJOJOH and development (including certification as applicable) for Nigerians in line with UIF )VNBO $BQBDJUZ %FWFMPQNFOU *OJUJBUJWF (VJEFMJOF PG UIF /JHFSJBO $POUFOU Development and Monitoring Boardโ s (NCDMB). The training plan will include contract-specific training and estimated man-hours. Tenderer is required to submit MOA with Oil and Gas Trainers Association of Nigeria (OGTAN) trainers to support UIFJS USBJOJOH QMBO XIJDI TIBMM CF PG UIF QSPKFDU .BO IPVST PS PG UIF UPUBM contract sum. 1SPWJEF FWJEFODF UP TIPX UIBU B NJOJNVN PG PG UIF FRVJQNFOU UP CF EFQMPZFE for the work is owned by the Nigerian subsidiary if international or multinational company is working through the Nigerian subsidiary including equipment list (Tenderer to provide verifiable evidence (purchase receipt, bill of sale, etc.) of ownership of equipment in executing this contract. 1SPWJEF FWJEFODF PG BQQSPWFE /JHFSJBO $POUFOU &RVJQNFOU $FSUJรถDBUF PS TUBUVT PG the application submitted to NCDMB for the certificate for the procurement of all equipment, systems and packages to be supplied on the contract (where applicable). 8IFSF 5FOEFSFS JOUFOET UP VTF TVCDPOUSBDUPS T TVQQMJFS T 5FOEFSFS TIBMM QSPWJEF same information for the nominated supplier(s)/sub-contractor(s). 10. Detailed specific programmes in place to transfer technology and skills to Nigerian businesses 11. Provide evidence of completed registration on NCDMB NOGICD JQS portal. Note: Land and Swamp operations are exclusively for Nigerian indigenous service DPNQBOJFT UIBU IBWF B NJOJNVN PG FRVJUZ TIBSFIPMEJOH

6. Additional information 5. Nigerian Content Bidders are to note that they will be requested during the technical tender to give full details of their relevant strategy to ensure that they fully comply with provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. Consequently, biddersโ submissions shall be evaluated strictly with the minimum evaluation criteria EFรถOFE JO A5IF "DU 'BJMVSF UP NFFU UIF /JHFSJBO $POUFOU SFRVJSFNFOUT JT B โ FATAL FLAW.โ In line with the above, Tenderers responding to this advertisement are required to submit the following in compliance with the Nigerian Content Act, 2010: 1. Demonstrate that the entity is a Nigerian-registered/owned company. Submission PG DFSUJรถFE USVF DPQJFT PG $"$ GPSNT PS JUT FRVJWBMFOU $"$ etc.) including company memorandum & article of association and other evidence of entityโ s incorporation, shareholding & ownership structure in Nigeria. %FWFMPQ B /JHFSJBO $POUFOU 1MBO UIBU EFNPOTUSBUFT UIF GVMM VUJMJ[BUJPO PG /JHFSJBO labour and services with detailed description of role, work scope and man-hours in order to achieve the minimum target as set out in the requirements of the NOGICD Act 2010 (80% Spend; Well Completion Services) GPS UIJT QSPKFDU 8IFSF JO DPVOUSZ capacity is inadequate, propose innovations to bridge the gap " QMBO PG IPX JU JOUFOET UP HJWF รถSTU DPOTJEFSBUJPO UP NBUFSJBMT NBOVGBDUVSFE BT well as assembled goods of Nigerian origin which shall include a breakdown of all

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Please visit NipeX portal at www.nipex-ng.com for this advert and other information

T H I S D AY Ëž SEPTEMBER 11, 2018

BUSINESS/MONEYGUIDE

CPC, NCC Probe Consumer Abuses in Telecoms Sector James Emejo Ă&#x201C;Ă&#x2DC; Ă&#x152;Ă&#x;Ă&#x201D;Ă&#x2039; The Consumer Protection Council (CPC) and the Nigerian Telecommunications Commission (NCC) yesterday announced the commencement of a joint regulatory inquiry into consumer issues in the telecommunication industry. The inquiry, which is in partnership with relevant security agencies came amid account of incessant and continuing dissatisfaction and complaints by consumers. It was also partly in response to a resolution of the Senate of the National Assembly requiring investigation and remedial measures of vital service issues and grievances by consumers. â&#x20AC;&#x153;Both NCC and CPC intend to keep abreast of this important

issue to ensure enhanced operations and customer satisfaction,â&#x20AC;? both said in a joint statement issued after a meeting yesterday. They stated that the move was consistent and complimentary to the Federal Governmentâ&#x20AC;&#x2122;s commitment to Ease of Doing Business and the Economic Recovery and growth Plan which prioritises people and firm. The investigation was expected to cover service quality, service issues such as call masking, unsolicited subscriptions, difficulty with unsubscribing to billed value added services, and transparency in billing with respect to clarity, data roll over, disclosures about real consumption, deductions for value added services and other key telecommunications services.

The expected outcomes are better services, more transparent charges and increased customer service responsiveness by telecommunications operators, they assured. The statement added that both NCC and CPC have assembled a team of skilled operatives to discharge this assignment and look forward to the cooperation of consumers, operators and other stakeholders, particularly with providing information as may be, and when necessary that could be relevant to the subjects of the inquiry â&#x20AC;&#x153;This is the right thing to do. It promotes regulatory collaboration and all round protection. It also ensures regulatory clarity and eliminates possible multiple regulatory approaches to similar issues.

Suleiman: Economic Inclusion More Fundamental Than Financial Inclusion Nume Ekeghe The Managing Director and Chief Executive Officer of Sterling Bank Plc, Mr. Abubakar Suleiman while speaking at the just-concluded Nigeria Bar Association (NBA) annual general conference in Abuja, said non-interest banking will provide lawyers with huge opportunities in the near future as it is currently one of the fastest growing financial products in the world. Suleiman gave the advice while contributing to a panel discussion on â&#x20AC;&#x2DC;Financial Inclusion and Wealth Managementâ&#x20AC;&#x2122; saying lawyers have a role to play in ensuring financial inclusion for their clients. He added that non-interest banking was backed by the law because every single transaction is treated as a separate contract as opposed to the practice in conventional finance where a single contract covers the total transaction.

According to him, â&#x20AC;&#x153;Every single transaction in non-interest banking is a separate contract as opposed to conventional finance where thereâ&#x20AC;&#x2122;s actually a single contract that runs through your total transaction.â&#x20AC;? He, however, debunked the notion that deposit money banks often prefer to focus on professionals and the educated rather than the poor in rural areas, saying decisions in the banking sector are largely dictated by the dynamics of the market system. He said: â&#x20AC;&#x153;I think the joke is on all of us. I donâ&#x20AC;&#x2122;t see any law firm in the villages either. The beauty of running a market system is that people will offer their services in places where theyâ&#x20AC;&#x2122;ll pay for it. â&#x20AC;&#x153;I desire to see everybody being able to pay for all the services, but the reality is that you need to create the capacity and affordability. People have to be able to afford the services

before the private sector can provide it. â&#x20AC;&#x153;And thatâ&#x20AC;&#x2122;s why economic inclusion is far more fundamental than financial inclusion. Once these people become economically included, financial inclusion will automatically follow.â&#x20AC;? He added that there are social programmes in place to improve financial inclusion of rural dwellers which are not profit-led. He said banks in Nigeria recently committed to as many as two million free telephone handsets for distribution to the poorest people so that they can become not just financially included but also have access to telecom services. According to him, Sterling Bank alone is providing 200,000 phones to people in the villages at no cost. â&#x20AC;&#x153;So, the social programme will take care of that, but the commercial programme will always follow the money,â&#x20AC;? he said.

Standard Chartered Pledges Sustained Adherence to Regulations Standard Chartered Bank Nigeria Limited yesterday has promised to continue to conduct its and remain committed to carrying on our business in compliance with all relevant laws and regulations. The bank stated this in a statement yesterday. Standard Chartered Bank Nigeria Limited recently received a letter from the Central Bank of Nigeria imposing sanctions on the bank for alleged breaches of foreign exchange regulations in connection with certain foreign currency remittances. The bank was thereafter debited the said sum. The transactions, some of which date back to 2001, were

in respect of foreign currency remittances backed by Certificates of Capital Importation (CCIs) issued in favour of our client, MTN Nigeria Communications Limited. The bank had responsed to the CBN on the said infractions and had refuted allegations of any wrongdoing.â&#x20AC;? It added: â&#x20AC;&#x153;As in all countries where the Bank operates, Standard Chartered Bank Nigeria Limited remains committed to ensuring that all its processes and procedures adhere to the highest levels of corporate governance, controls and compliance with applicable laws of the jurisdiction.â&#x20AC;?

Speaking on the matter, its Head, Corporate Affairs, Brand and Marketing, Nigeria, Dayo Aderugbo said: â&#x20AC;&#x153;I would like to reiterate to our stakeholders that in Nigeria, as in all countries where Standard Chartered operates, we conduct, and remain committed to carrying on our business in compliance with all relevant laws and regulations. â&#x20AC;&#x153;The board and management of the bank hereby use this opportunity to advise its valued clients that the action of the Central Bank of Nigeria (CBN) does not impact their ability to engage with the Bank for their personal, business and corporate transactions.â&#x20AC;?

Firm Launches Technology to Boost Agric Hamid Ayodeji Wells Hosa Green House Farms has launched a Hydroponic Technology, a method of growing plants in controlled environments, using mineral nutrients in water and no soil. The technology is created from different systems integrated by irrigation, fertilisation and pest

control, to obtain increase in the plants growth and nutrients, as compared with traditional open field methods. The firm explained that the technology had been positioned to help revolutionise the tomato industry in Nigeria and impact the entire agricultural sector of the nation. The chief executive of Wells Hosa Farm, Captain

Hosa Okunbor, said this in a speech he delivered in Benin. â&#x20AC;&#x153;Also, it aims at satisfying both domestic and export demand of horticultural products and increasing non-oil exports in the international market which will change the situation of agriculture in Nigeria whilst immensely diversifying our economy.

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

MARCH 2018 Broad Money (M2)

24,303,049.86

-- Narrow Money (M1)

10,912,604.10

---- Currency Outside Banks

1,668,378.21

---- Demand Deposits

9,244,225.90

-- Quasi Money

13,390,445.76

Net Foreign Assets (NFA)

15,619,134.18

Net Domestic Assets(NDA)

8,683,915.68

-- Net Domestic Credit (NDC)

26,267,136.53

---- Credit to Government (Net)

3,823,345.45

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

5,433,209.43

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

-1,609,863.98

---- Credit to Private Sector (CPS)

22,443,791.08

--Other Assets Net

-17,583,220.85

Reserve Money (Base Money)

6,746,646.49

--Currency in Circulation

1,668,378.21

--Banks Reserves

4,357,551.58 Ëž Ă&#x2122;Ă&#x;Ă&#x153;Ă?Ă? Ě&#x2039;

Money Market Indicators (in Percentage) Month

March 2018

Inter-Bank Call Rate

15.16

Minimum Rediscount Rate (MRR) Monetary Policy Rate (MPR)

14.00

Treasury Bill Rate

11.84

Savings Deposit Rate

4.07

1 Month Deposit Rate

8.82

3 Months Deposit Rate

9.72

6 Months Deposit Rate

10.93

12 Months Deposit Rate

10.21

Prime Lending rate

17.35

Maximum Lending Rate

31.55

Ëž Ă&#x2122;Ă&#x2DC;Ă?Ă&#x17E;Ă&#x2039;Ă&#x153;ĂŁ Ă&#x2122;Ă&#x2013;Ă&#x201C;Ă?ĂŁ Ă&#x2039;Ă&#x17E;Ă? Ě&#x2039; ÍŻÍąĎą

OPEC DAILY BASKET PRICE AS AT FRIDAY SEPTEMBER 7, 2018

The price of OPEC basket of ďŹ fteen crudes stood at $74.17 a barrel on Friday, compared with $74.51 the previous day, according to OPEC Secretariat calculations. The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Oriente (Ecuador), ZaďŹ ro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela) SOURCE: OPEC headquarters, Vienna

T H I S D AY ˾ SEPTEMBER 11, 2018

MARKET NEWS

Persistent Bear Run Pushes Nigerian Stock Market to 15-Month Low Goddy Egene The Nigerian equities market slumped to 15-month low yesterday on continuing bear run with the Nigerian Stock Exchange All-Share Index (NSE ASI) falling 1.25 per cent to close at 33,611.69, while market capitalisation shed N155.6 billion to close at N12.27 trillion. The market had lost 2.3 per cent last week in line with the persistent bearish trend.

Although some analysts had said the current trend was not necessarily a true reflection of the fundamentals of companies, adding that opportunities still remain in the market. However, investors appear not to be taking advantage of those opportunities, hence the persistent slide in the market, which has worsened the yearto-date decline to 12.1 per cent. Some market analysts said investors should trade cautiously

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in the short to medium term, as selloffs are likely to persist, amidst the brewing political uncertainty, and the absence of a one-off positive trigger. “However, stable macroeconomic fundamentals remain supportive of long term gains,” they said. Others noted that they envisage a negative close to the market this week due to continued sell offs, in the absence of any significant market information to sway the

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market the other way. In all, 21 stocks depreciated compared with 11 others that depreciated. Nestle Nigeria Plc led the price losers with 9.6 per cent trailed by Forte Oil Plc with 9.2 per cent, while Regency Alliance Insurance Plc with 8.7 per cent. Other top price losers included: Japaul Oil and Maritime Services Plc(7.6 per cent); Law Union and Rock Insurance Plc(7.4 per cent); NEM Insurance Plc

T R A D E D MAIN BOARD

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(6.9 per cent); Continental Reinsurance Plc (6.2 per cent) Sovereign Trust Insurance Plc (4.0 per cent) and Wema Bank Plc (3.5 per cent). On the positive side, SUNU Assurance Plc led the price gainers with 10 per cent, trailed by Union Diagnostic and Clinical Services Plc (7.4 per cent); Honeywell Flour Mills Plc (5.5 per cent) and University Press Plc (4.1 per cent) and Mutual Benefits Assurance Plc (3.7

O F

per cent). Meanwhile, activity level weakened as volume and value traded declined 11.8 per cent and 35.5 per cent to 137.6 million shares and N1.4 billion respectively. Diamond Bank (30.1 million shares), UBA (16.7 million shares ) and GTBank (11.2 million shares ) were top traded by volume while GTBank (N390.9 million), Nigerian Breweries (N218.8 million) and Zenith Bank (N136.6 million) were top traded by value.

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TUESDAY SEPTEMBER 11, 2018 ˾ T H I S D AY

NEWSEXTRA

Rivers APC Faction Adopts Direct Primaries

Ondo APC to conduct parallel primary elections Gombe faction raises the alarm Crisis looms in Edo chapter Ernest Chinwo in Port Harcourt, Segun Awofadeji in Gombe, James Sowole in Akure A faction of the All Progressives Congress (APC) in Rivers State yesterday adopted the use of direct primaries in selecting candidates for the party in the 2019 general election in the state. However, the fear of a parallel primary election to elect candidates of the APC in Ondo State ahead of the 2019 general election was heightened yesterday as members of the party opposed to the indirect primary method adopted by the state branch of the party started obtaining nomination and Expression of Interest forms from the executive of a faction of the party in the state. This is coming as the APC Stakeholders’ Forum in Gombe State has warned that the party stands the risk of facing its worst defeat if indirect primaries are adopted for the selection of the party’s candidates for the 2019 elections.

Also, impending implosion would likely rock the Edo State chapter of the ruling party if the state party leadership flouts the directive of the National Executive Committee (NEC). In a communique issued at the end of a meeting of the expanded State Executive Committee (SEC) of the faction, the party said direct primaries would afford its members the opportunity to participate in the process of electing persons that would fly the party’s flag in the forthcoming general election. The position of the faction, which is loyal to the Senator representing Rivers South East senatorial district in the National Assembly and governorship aspirant, Senator Magnus Abe, is in contrast to the position of the faction loyal to Minister of Transportation, Hon. Chibuike Amaechi, which has favoured indirect primaries. The communiqué, which was signed by the factional acting Chairman, Prince Peter Odike, said

the decision was in consonance with the APC’s position and desire to make the elections in 2019 and beyond reflective of the will and aspiration of the people. In a related development, the fear of a parallel primary election to elect candidates of the APC in Ondo State ahead of the 2019 general election was heightened yesterday as members of the party opposed to the indirect primary method adopted by the state branch of the party started obtaining nomination and Expression of Interest forms from the executive of a faction of the party in the state. One of those opposed to indirect primary election and a serving member of the House of Representatives , Hon. Kolawole Babatunde, was presented his form by the parallel Chairman of the party in the state, Mr. Idowu Otetubi. Otetubi, who described himself as the authentic chairman of the

APC in the state, said the party allowed aspirants to obtain their forms either at the state secretariat or at the national secretariat. Otetubi said he was the chairman that emerged from the properly-constituted congress of the party. Meanwhile, the APC Stakeholders’ Forum in Gombe State has warned that the party stands the risk of facing its worst defeat if indirect primaries are adopted for the selection of the party’s candidates for the 2019 elections. Addressing a press conference to protest the planned indirect primaries yesterday, Secretary of the Forum, Abdul-Ghaniyu Bello, said the failure of the party to win the governorship election in 2015 would be a child’s play should the party go ahead to impose the unpopular indirect method on its members. The forum added that despite the fact that Gombe State is being

governed by a Peoples Democratic Party (PDP) government, the state is largely an APC state even before the 2015 elections. The Forum secretary stated that after the conduct of the governorship primaries in 2015, the party members became deeply divided, resulting in its defeat at the polls few months later. In a related development, impending implosion would likely rock the Edo State chapter of the ruling party if the state party leadership flout the directive of the National Executive Committee (NEC). The crisis, THISDAY learnt, might emanate from the insistent of the party caucus in the state to conduct consensus primaries against the desire of the other members of the party who are of the opinion that the directives of party NEC on direct or indirect primaries must be adhered to. This has divided the party into two - those who are in

favour of NEC’s directives and the party leadership who has concluded arrangements to adopt consensus. Speaking to journalists in Benin City, capital of Edo State, a senatorial aspirant, Chief Francis Inegbineki, said it is direct primaries or nothing else. Inegbineki, who is aspiring for Edo Central senatorial district, seat in the Senate, said with direct primaries, a popular candidate would emerge unlike consensus that would bring out a puppet of a selected few leaders. Also, the former member, representing Ovia federal constituency from 2011 to 2015 who is aspiring to return, Hon. Isaac Osahon, has also kicked against consensus. He advised that since the party NEC has directed the use of direct or indirect primaries, the party leadership at the state level should abide by it in order not to cause crisis in the state.

Saraki Demands Transparent PDP Presidential Primaries North Central youths back his presidential bid Yekini Jimoh in Lokoja Senate President and Peoples Democratic Party (PDP) presidential aspirant, Dr. Bukola Saraki, has called on the leadership of the party to conduct transparent primaries to pick its presidential standard bearer for the 2019 elections. This is coming as the North Central youths of the main opposition party have endorsed Saraki for the next presidential election in 2019. Saraki, who made the call yesterday shortly after submitting the Expression of Interest and nomination forms to run for the office of the president on the platform of the PDP also ruled out a consensus option, saying it is not an issue for the 12 aspirants. The former Governor of Kwara State also noted that Nigerian youths want a president who in 2019 will address the challenge of unemployment, even as he urged the electorate not to make the mistake of electing a leader incapable of providing answer to the national question. He said: “I don’t think the consensus thing is an issue before us because we are trying to make ensure that there is internal democracy in the system and a very credible primaries. “What is important is that at the end of the day, we have something that is rancour-free. What I can tell you is that we are working together because we are still part of one family. I believe at the end of the day, we will have a process that whoever emerges will be supported by all of us. “For us to grow this country, to have the teeming youths who are unemployed and create opportunities for them, Nigerians have come to understand that to do this, you must know how to do it. You cannot give what you don’t have. You can only give what you have.

“And the teeming youths are saying it is time for them to put in place someone who has the energy, youthfulness, capacity, capability and the knowledge to drive them to the future. It is through this that we can secure the future. It is through this that on the continent of Africa and comity of nations, Nigeria will stand high yet again.” He promised to unite the party by providing purposeful leadership that will make Nigerians proud of their country. Saraki was accompanied to the PDP headquarters by his long-term political associate, Alhaji Abubakar Kawu Baraje; Director General, Saraki Presidential Campaign Council, Honourable Mohammed Wakil; former presidential aide, Dr. Doyin Okupe; the lawmaker representing Kogi West, Senator Dino Melaye, among others Meanwhile, the North Central youths of PDP have endorsed Saraki, for the next presidential election in 2019. The chairman of the parliament of the PDP youth leaders of the zone, Stephen Onoji, who made this known yesterday in Lokoja, said Saraki had paid his dues and is fit to govern the country. Apart from this, the youths said it was time the North Central zone of Nigeria is given to produce the president of the countyr several years after its independence. He noted that the Senate president with his experience as two terms governor of Kwara State, Senate president and his leadership quality was capable of returning Nigeria to the path to greatness and bring hope to the people of the country. According, to him, the country, was tired of “analogue president,” saying Nigeria needed a millenium-compliant leader that would freely interact with his colleagues and the people through technology.

IT’S NICE MEETING YOU...

President Cyril Ramaphosa of South Africa (left), being welcomed to the Nigeria Pavilion by Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, at the International Telecommunications Union (ITU) Telecom World 2018, Durban, South Africa....yesterday

Forbes Ranks Rwanda, S’Africa over Nigeria on Investor Protection Forbes has ranked Nigeria third best in Africa in terms of “investor protection.” Rwanda and South Africa were rated above Nigeria on the African continent. A total of 153 countries were surveyed. The American business magazine made this known in its Index of Best Countries for Business Report released last Friday. The report, according

to TheCable, said in the period under review, Nigeria experienced positive economic growth driven by its agriculture, telecommunications and services sector. In the overall ranking, Nigeria was ranked as 115th best country to do business in the world. The rankings were based on 15 different factors including property rights, innovation, taxes, technology, corruption,

freedom (personal, trade and monetary), red tape and investor protection. Cumulatively, South Africa was ranked 48th while Rwanda scored 79th on the index for best country to do business. Listing key indices used in its computation, the report said Nigeria’s GDP as of December 2017 was $405 billion while GDP growth was -1.6 percent in the period under review.

Unemployment and inflation rate was put at 13.4 per cent and 15.7 per cent respectively. In the country profile, the report said even though Nigeria had experienced economic diversification and strong growth, it has not translated into a significant decline in poverty levels, with over 62 per cent of the country’s 170 million people still living in extreme poverty.

Malami Confirms 70% of Prisoners Awaiting Trial Alex Enumah in Abuja The Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami (SAN), has decried a situation where inmates awaiting trial constitute 70 percent of prison population in the country. Malami, who called for

an urgent action against the development, also lamented that most of the inmates belong to the younger population of the country and are being held because they cannot afford the meagre amount for their bail. He was speaking during the Presidential Committee on Prisons Reform and

Decongestion’s visit to BirninKebbi Prisons in Kebbi State. While disclosing that the committee will pay for the fines of some inmates and also conduct a review of cases of inmates awaiting trials for more than five years in the select priority prisons, the AGF stressed that Nigeria cannot

continue to overlook the need for non-custodial measures in the judicial system. According to him, “It was distressing to note that many of the released inmates were aged between 18 and 25 and were convicted of crimes from stealing onions to stealing mobile/ television sets.

TUESDAY SEPTEMBER 11, 2018 ˾ T H I S D AY

NEWSEXTRA

LADOL Terminates Agreement with Foreign Partner Nseobong Okon-Ekong A few weeks after the Vice President, Professor Yemi Osinbajo (SAN) visited and commended LADOL for recording giant strides in the Egina Floating Production Storage Offloading (FPSO) unit, which was built by Samsung Heavy Industries (SHI), in conjunction with LADOL, LADOL has terminated its agreements with the foreign partner, SHI, due to alleged

untoward activities, including contractual and ethical breaches. The foremost logistics company and operator of the Free Zone within the Apapa Port terminated its partnership with SHI, on the Egina FPSO project, the largest of its kind in sub-Saharan Africa, accusing the Korean company of derailing it through its activities, over a number of years. LADOL accused SHI of consistently engaging in unacceptable violations of Nigerian

laws and regulations, in what can be described as connivance with Nigerian officials. LADOL also accused SHI of undercutting it by withholding crucial information on their joint operations, in addition to flagrant disregard for the Nigerian workers and industry regulators. LADOL, according to its Managing Director, Dr. Amy Jadesimi, had refrained from taking action against SHI until now, as it weighed the national

Boko Haram: Marshy Terrain, Poor Weather Stall Military Operations KingsleyNwezehinAbuja Marshy terrain and poor weather conditions have stalled military operations in the north-east as the military battles terrorist group, Boko Haram. But the Nigerian Airforce said fighter aircraft and gunships attacked locations of the terrorists at the fringes of Lake Chad and Sambisa Forest yesterday. The air interdiction missions tagged “Operation Thunder Strike 2”, is part of the joint military taskforce, Operation Lafiya Dole. There has been a back and forth movement in the war between ground troops and the insurgents resulting in the territorial claims and capture of military bases and equipment by the insurgents even though the Nigerian Army insists it had recaptured lost grounds. The army denied it lost more than 46 soldiers to the insurgents last week while the airforce maintained that air strikes were hitting targets. THISDAY checks revealed that the marshy nature of the fringes of Lake Chad and the surrounding environment has made troop movement difficult. Tanks are said to have been regularly mired at critical times thus giving room to quick advances by the insurgents, some of whom are more familiar with the terrain than the military forces. Poor weather conditions are also said to be making accurate air strikes

Lamido will Step down for Me, Says Atiku Former Vice President, Atiku Abubakar, yesterday said he is sure that a fellow presidential aspirant, Sule Lamido, would step down for him. Abubakar stated this at the PDP headquarters in Dutse, Jigawa State when he met party leaders in the course of his campaign tour. He said he believed Lamido would concede the ticket to him because the former governor is his younger brother and shares the same political ideology with him. He based his prediction on the scenario in the aborted Third Republic when the Yar’Adua brothers initially sought the tickets of the defunct Social Democratic Party (SDP). The late Shehu, who was the elder, was running for president while the late Umaru sought the ticket of the same party for governorship of Katsina State.

difficult when fighter planes move in for air interdictions. The weather situation have slowed down the response time at critical moments. But the Nigerian Airforce said in spite of the operational challenges, air strikes had significantly reduced attack on troops. Reacting to the development, Airforce spokesman Air commodore Ibikunle Daramola, said airfocrce jets had repeatedly pounded terrorist targets. “I agree that this is rainy reason and the terrain is extremely marshy causing a lot of problems for the ground troops. Except for weather issues, the airforce has pounded their targets. When you undertake such operations, it takes time for the effect to be felt. “This is a systematic operation. The army has regrouped and positioned troops in the right places”, he said. The fighter planes, the airforce said, hit targets at Kollaram on the Lake Chad Green fringes as well as Bula Korege within Sambisa Forest. “The attack at Kollaram was conducted with Human Intelligence reports, that led to the identification

of a Boko Haram hideout within the settlement. “Accordingly, the Air Task Force detailed a fighter aircraft to attack the insurgents’ hideout which was destroyed while many terrorists were killed. “Further air missions had also observed significant presence of the insurgents in the middle of Bula Korege on the fringes of Sambisa Forest, with several buildings identified as locations where some of their leaders reportedly resided. “Consequently, Nigerian Air Force (NAF) Alpha Jet aircraft and 2 helicopter gunships were detailed to carry out air interdiction at the location. “The attacks by the fighter jets destroyed about 12 dwellings of the insurgents and several solar panels in the area of interest. A few survivors were seen fleeing the area and appropriately engaged by the Mi-35M helicopter gunships. “The NAF will sustain the momentum of the operation with a view to decimating the remnants of the insurgents”, a statement from the Airforce said.

interest and avoided any action that could have disrupted the multi-billion dollar Egina FSPO project, which has now been concluded. In order to seek redress and protect its investment, LADOL has instituted legal proceedings against SHI, by recently filling a suit with number: FHC/L/ CS/1459/2018, at the Federal High Court, Lagos. When Contacted, SHI denied the allegations. A top Nigerian official of the company insisted that, “SHI did not violate the Nigerian content law.” The SHI official also claimed that the company had also filed a lawsuit to challenge LADOL’’s refusal to renew its operating licence. A catalogue of the illegal activities and practices of the SHI in the country, as raised in the LADOL suit, include violations of the procedures of the Nigerian Customs Service, and those of the Nigerian Immigration; breaches of regulations of the Nigerian Content Development and Monitoring Board (NCDMB) and refusal to remit statutory tariffs to the federal government – despite several demands from the Nigerian Export Processing Zone Authority. However, in a four-page termination letter issued to the Korean firm by Global Resource Management Limited, a

subsidiary of LADOL and dated September 4, which was sighted by THISDAY, the Nigerian company accused SHI of bypassing it to work directly with the Nigerian Ports Authority (NPA); NCDMB and other government regulatory agencies. It was based on these grounds that LADOL said it has terminated the partnership, alleging that SHI’s actions violate the agreement both companies signed in 2014. In the suit filed by LADOL, it also accused SHI of habitually breaching Nigerian contract laws by persistently refusing to comply with rules and regulations of the LADOL Free Zone area. SHI was accused of blatantly repudiating major contractual terms in the agreements signed with the logistics company, and concealed funds provided for in the Head Contract from its local content partner, LADOL. Moreover, SHI was said to have excluded LADOL from the operations, as a way of refusing to transfer technology, one of the crucial agreements in its contract, whilst demanding huge unconscionable variations from their client (the Total/NNPC Joint Venture), and hence deviations from its obligations to the Nigerian people. All these, SHI carried out, while sponsoring media attacks on notable government agencies

and giving the false impression of the country as operating in an environment not conducive to doing business. A number of civil society groups, such as Nigerian Young Professionals Forum and Connected Development, had alleged that there was contrived process in the award of the Egina FPSO project contract to SHI. These groups have observed that the award process was not only highly fraudulent but the project itself had involved massive disregard for local content laws, whilst indicating that the project and its variation costs were highly bloated. They therefore called that SHI be sanctioned in view of the local laws that have been violated, alongside the economic sabotage involved in the manner that the Egina FPSO project had been deliberately frustrated. A letter to President Muhammadu Buhari signed by the two groups reads in part, “As events have unfolded over the years…it is clear that the Samsung Heavy Industries (SHI’s) engineering, procurement and construction of the Egina FPSO has been a sham calculated to massively defraud the Nigerian commonwealth, undermine the extant laws and signal corporate corruption of monumental proportions in the highest corridors.

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T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

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Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com 0811 181 3083 SMS ONLY

NPFL Champions Lobi Stars, MFM Crash Out of Aiteo Cup Rivers United through to Round of 32 Duro Ikhazuagbe The usual drama associated with FA Cups around the world continued yesterday as 2018 Nigeria Professional Football League (NPFL) champions, Lobi Stars of Makurdi, was sent out of the Round of 64 stage of the AITEO Federation Cup. Lobi is to represent Nigeria in next seasonâ&#x20AC;&#x2122;s CAF Champions League after being declared winners of the 2018 NPFL season with over a dozen matches left to be played. Amateur clubside, Standard FC stopped Lobi from dreaming of a double this season when after a 1-1 result in regulation time, the Kaduna team triumphed 3-2 on penalty shootout. Interestingly, it was Standard that took the lead in the first half before the NPFL champions rallied to even score in the second stanza. The drama of topflight teams crashing did not stop with Lobi. Lagos church team, MFM FC, also exited the competition in shootout. Second-tier Bet9ja Nigeria National League team, Sokoto United defeated Coach Fidelis Ilechukwu and his NPFL campaigners 4-3 in the ensuing penalty kicks after regulation time ended goalless. However, it was not all bad news for NPFL teams as River United who struggled to escape drop to the lower league in the 2017 season crushed a hapless Gusau XI 6-0 to progress to the Round of 32 at the Lafia City

Bernad Ovoke scored four goals yesterday to qualify Rivers United for the Round of 32 of the Aiteo Federation Cup

Stadium in Nasarawa State capital. Bernard Ovoke was in fine form scoring four times as Rivers United totally annihilated Gusau Eleven. Frederick Obomate and Malachy Ohawume contributed the other two goals for the Rivers State own team. In another game whose

second half was concluded yesterday morning, Kwara United defeated Ogun All Stars FC 3-1 to progress to the Round of 32 also. Earlier on Sunday, Shooting Stars Sports Club of Ibadan, Heartland Football Club of Owerri and Bendel Insurance FC of Benin City all crashed

out of the competition. Shooting lost to Supreme Court while the Naze Millionaires were caged by Confine FC. Insurance lost to Remo Stars Feeder team. However, Cup holders Akwa United moved into next round of the competition with a comprehensive 7-0 drubbing of amateur club, Hope

Pinnick Heads FIFA/CAF Normalisation Team to Ghana President of the Nigeria Football Federation (NFF) who also doubles as CAFâ&#x20AC;&#x2122;s Vice President, Amaju Melvin Pinnick has been selected to lead FIFA/CAF Normalisation team to Ghana Ghanaâ&#x20AC;&#x2122;s football has been in near crisis situation after former President and CAF Vice President, Kwesi Nyantakyi was forced to step down from the posts after been implicated in a bribe taking filmed by controversial Ghanaian journalist Anas. Attempts by the government to dissolve GFA and conduct fresh elections was opposed by FIFA and a compromise has been reached with a Normalisation

Committee to be put in place to run GFA until the present tenure expires. THISDAY learnt that Pinnick was handed a letter from FIFA yesterday to proceed to Accra in company with three others in order to install the committee. FIFAâ&#x20AC;&#x2122;s General Secretary Fatma Samoura signed Pinnickâ&#x20AC;&#x2122;s letter to lead the delegationto Ghana. Others on the entourage include; the Director, Member Associations of the Confederation of African Football Veron Mosengo Omba and Mr Nicola Luca who is the Manager Member Associations are part of the team headed by the Nigeria FA boss. In August the government

of Ghana sent a delegation to Zurich and met with officials of FIFA, comprising its President, Gianni Infantino, Samoura. Both parties agreed to a road map to reform Ghana football after the sting operation which implicated several FA members, Referee and even some other top shots in the countryâ&#x20AC;&#x2122;s sports sector. The agreement ended nearly nine weeks of uncertainty about the governmentâ&#x20AC;&#x2122;s planned action to clean up the game in the county and ban threat from FIFA over the governmentâ&#x20AC;&#x2122;s intervention. Similar ban threat was also hanging over Nigeria until the government responded

adequately through the office of the then Acting President, Prof Yemi Osinbajo in spite of the position personally taken by Nigeriaâ&#x20AC;&#x2122;s Sports Minister Solomon Dalung. When the government and FIFA met in Zurich during the period both sides agreed the withdrawal of a legal suit to dissolve the Ghana Football Association and the establishment of a normalisation committee to oversee the reforms. The normalisation committee is to be established to replace GFA Executive Committee headed by Nyantakyi whose members were forced to leave office following the corruption scandal.

Mane, Salah Only Africans on Fifpro World XI List Senegalâ&#x20AC;&#x2122;s Sadio Mane and Mohamed Salah of Egypt are the only Africans on the 55-man shortlist for the Fifpro World XI. Englandâ&#x20AC;&#x2122;s Kyle Walker, Kieran Trippier and Harry Kane are also named on the long list alongside seven members of Franceâ&#x20AC;&#x2122;s World Cup-winning team. Liverpoolâ&#x20AC;&#x2122;s Virgil van Dijk and Dejan Lovren were also included for the first time. Walesâ&#x20AC;&#x2122; Gareth Bale misses out, and there also no Scottish or Northern Irish players on

the list. The list was compiled from the votes of 25,000 footballers from 65 countries. Players were asked to pick one goalkeeper, four defenders, three midfielders and three attackers who excelled in the 2017-18 season. Tottenham striker Kane won the Golden Boot as leading scorer as England reached the World Cup semi-finals. The French World Cup winners are Antoine Griezmann,

Nâ&#x20AC;&#x2122;Golo Kante, Kylian Mbappe, Benjamin Pavard, Paul Pogba, Samuel Umtiti and Raphael Varane. Real Madridâ&#x20AC;&#x2122;s entire starting XI from their Champions League win against Liverpool in May made the list, including Cristiano Ronaldo, who joined Juventus in the summer, while new goalkeeper Thibaut Courtois, who signed from Chelsea, is also included. But Bale, who scored twice for Real in the final, did not

make the cut. Premier League champions Manchester City have three players included in David Silva, Kevin de Bruyne and Walker. Manchester United have Pogba, David de Gea, Nemanja Matic and Romelu Lukaku, while Evertonâ&#x20AC;&#x2122;s new Colombian centre-back Yerry Mina is among the 55 names. The final XI will be revealed during the Best FIFA Football Awards in London on 24 September.

of Glory in their round of 64 tie. In Port Harcourt, Akwa United showed their form as they completely outclassed Hope of Glory with Aniekeme Asuquo grabbing a hat-trick while the duo of Victor Mbaoma and Ezekiel Bassey scored a brace apiece. Shooting Stars lost 5-4 on

penalties to fellow Bet9ja Nigeria National League side, Supreme Court in Benin. The game ended in a 0-0 draw after 90 minutes. Nationwide League one side, Cofine FC created one of the biggest upsets of the round by edging out Heartland 4-2 on penalties after the game finished 1-1 at regulation time.

Organisers Unveil Judges for First-ever Africa Freestyle Football Championship The Organisers of the forthcoming Africa Freestyle Football Championship, Feet and Tricks International, have unveiled the umpires for the first-ever African Championship. Already, Feet and Tricks International has assured participants, stakeholders and ardent followers of the sport, that the first ever Championship in Africa scheduled to take place between September 13th and15th at the Balmoral Convention Centre, Federal Palace Hotel in Lagos will be one to remember for a long time. At the weekend, three reputable judges were named for the competition billed to attract the best freestylers on the continent and beyond. They are Tobias Brandal Busaet from Norway, Gautier Fayolle from France and Szymon Maciej Skalski. They will be joined by Daniel Wood World, the Co-founder of World Freestyle Football Association (WFFA), the umpire body, in addition to other members of the WFFA including Lukas Skoda, the Director of Operations. Busaet is one of the strongest lower body focused freestylers in the world. He was the Norwegian freestyle champion in 2014 and 2015 and emerged the

European freestyle champion in 2015. He was also the Super ball world open runner up in 2014 and 2016. Jean-Marie AndrĂŠ is the master of musicality and variety of tricks. When it comes to Freestyle Football routines, there is no one better around the whole world. He proves it being multiple world champion in Routine and Double routine categories. The French man won Super ball world open routine between 2012 and 2016. Skalski is one from the strongest battle freestylers raised from the strongest scene in Poland. Szymo is part of worldwide events for more than five years and every time he participated, he reached top positions. He emerged polish champion in 2016. Wood has worked in the past 10 years to advocate corporate social opportunity in sport. His work marries the corporate world with the community and this has been achieved with professional footballers, street footballers and social influencers, FIFA World Cups (South Africa and Brasil), UEFA Champions League, EA Games, Adidas, Bridgestone, Castrol and Red Bull to name a few.

T H I S D AY Ë¾ TUESDAY SEPTEMBER 11, 2018

Tuesday September 11, 2018

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Price: N250

MISSILE Ekpenyong to Akapabio

“I am happy that generally, people know Akpabio to be an uncommon liar; he cannot continue to fool everybody all the times with his lies” – A former Deputy Governor of Akwa Ibom State, Dr Chris Ekpenyong, threatening to unleash damning records of Godswill Akpabio’s secret deals if he continued in his campaign of calumny against him.

TUESDAY WITH REUBENABATI abati1990@gmail.com

2019: A Brief Manual of Nigerian Politics

he political primaries are scheduled to hold between this month and the next and definitely by the end of October 2018, the hustling and jostling in Nigeria’s political arena would have begun in full earnest. The elections will be held in February 2019. For the benefit of any outsider who may never have witnessed Nigeria’s general elections, the type that is ahead, I offer in this brief note, a description of what to expect, what is already happening in the context of the character, content and style of Nigerian politics, what will happen and what may happen after the elections. Note this: Very few Nigerian politicians would easily admit that they are in pursuit of their own vaulting ambition, with an eye on profitable return on investment. They are likely to tell you that they are in the race, because they have been approached by members of their community, or certain interest groups to seek elective office, to seek another term, because they are so good, so indispensable that either the constituency or the people will have problems should they decline. “My people asked me to do this…” is a common refrain in Nigerian politics. To cite a familiar example, President Muhammadu Buhari has been told that there is no “alternative” to him in this country of about 200 million people, by the people who surround him. And he believes them! For years, we have therefore had too many unwilling candidates who were pushed into public office, not because they had anything to offer but because other people found them useful. There are others who are in politics and who actually go on to win elections just because they have an influential parent, a powerful Godfather, or a sellable family name, or enough war-chest to buy everyone that is available for purchase in the electoral value-chain. In the majority however, you will find those who will claim that they are responding to a Divine call. They have been told by a pastor (especially a General Overseer of one of these miracle-dispensing churches) or an imam (sorry a Sheik in Mali, Senegal, Niger, Guinea Bissau, and in-country, a Sheik in Ilorin, Osogbo, Bauchi, Maiduguri). They all rely on these pastors or imams or the covenants that they enter into in fraternities and cults. Election season is boom-time for these Nigerian spiritualists and the others our politicians consult overseas. A Nigerian election is not only a door-die battle on the physical plane, it is spiritual war. It is time for the spiritualists to eat. And they have started by telling their clients that they are the anointed ones of God. I am not making this up. These merchants of electoral victory are on the internet, especially You Tube, using technology to dispense the gospel. They claim to know who will be the next President or that next Governor or lawmaker; they manage to give only such vague hints that would draw the politicians to their doorsteps. If the politician is a newcomer to the game, there are consultants who claim to know the best pastors and imams, and in case you have not noticed, this is that type of season when prayer mountains, night vigils and special prayer rooms have become extra-ordinarily busy. Every election season, sacrifices are offered – someone who should know has said that there are more cases of kidnapping whenever Nigeria goes to the polls – human beings are offered as sacrifices to all kinds of small gods. It is all about money and power. The

Buhari spiritualists are bound to remain in charge before, during and after the elections. Spiritualists dictate the manner of governance and politics in more ways than you can ever imagine. If you disagree, please argue with the paper you are holding or your laptop or ipad, or phone. One spiritualist somewhere in Anambra state recently reported that he was attacked and his car and his body were riddled with bullets. He came out of that encounter unscathed. According to him, the bullets could not penetrate his body. In the Nigeria that I know, and given the season that we are in, that was an excellent marketing strategy. You may not believe the man of God, but he will receive visitations from hundreds of politicians and their thugs who devote substantial time and attention to the search for spiritual fortification. In this same country, one famous politician used to go about with a live tortoise strapped around his neck, nestling comfortably under his agbada! We are in the age and season of bullet-proof, miracle-seeking politicians. Money. This is an important part of the game. The extant Electoral Act (2010) in Nigeria is very specific about campaign finance and the exact amount that a politician is allowed to spend to seek particular offices, the source of the money, the exact amount that can be contributed by entities or individuals to campaigns and the general role of money in Nigerian elections. The law states that a presidential candidate can only spend a maximum amount of N1 billion, a governorship candidate, N200 million, a senatorial candidate, N40 million, House of Representatives candidate, N20 million, State House of Assembly, N10 million, chairman of local government, N10 million, and councillorship, N1 million. Campaign finance regulations are the most abused in Nigerian elections. The aspirants and candidates do what they like, the regulatory authorities look the other way, before, during and after elections. It is all about money on all sides. Election time is an opportunity for every one involved in the election value-chain to make money. There are some candidates who will be honest enough to say that they sold their houses and vehicles and shares and other possessions to be able to get involved in the process. But there are others who will disclose that they are so broke they have had to take bank loans. And there are others who will claim that they had to go cap in hand to their friends and associates to help them out with funds. There is something

common to them all: they incur debts ahead of the election. Should they be lucky enough to win, they have to settle the IOUs that brought them to power. This is the root of corruption in Nigeria that has not yet been addressed. If persons are allowed to violate the electoral law on campaign finance, and get away with it, they will do worse. The rule of law is violated; personal interest is allowed to pre-dominate. We have just such a case before us right now. The President of Nigeria, Muhammadu Buhari is reportedly so cash-strapped he cannot afford to pay the N45 million required for the purchase of the Expression of Interest Form and Nomination Form for the presidential election in his party, the All Progressives Congress (APC). In 2014, he reportedly took a bank loan to busy the same forms. Nobody has told us whether he has paid off that loan or not, but this time around, one entity has stepped in to buy the forms on the President’s behalf. This is clearly in violation of the Electoral Act, subsection 91(9) thereof. Some kind of solipsistic interpretation has been given by APC lawyers but it is not the duty of lawyers to interpret the law so they might as well just keep quiet. I don’t also want to get into that moral argument about whether or not President Buhari should accept the forms. If nobody invokes the law, and tests it, he will collect those forms and nothing will happen. And there are perhaps others like him at other levels, who may collect favours and gifts far in excess of what the law allows. The law is an ass; it doesn’t behave like one except you refuse to push it. The law on campaign finance in Nigeria is dead anyway because the entire process is monetized. If you are a Nigerian politician, and you want to be something as small as a councillor (a friend tells me that Councillors are big but I don’t believe him), you will need to find money to start feeding the community, months before the primaries or the election, you have to show up at naming, wedding and funeral ceremonies, pay school fees, hospital bills, send lawyers to police stations to help sort out matters ranging from robbery to wife battery. Every day, in your house, a cow must be slaughtered and food must be provided for every one that walks through the gate. You also have to buy motorcycles, bicycles and help fund the acquisition of third or fourth wives. A man who seeks elective office in Nigeria is a victim, to tell the truth. When his constituents deliver triplets, he is the one that will be called the father of the triplets even if he didn’t enjoy the sweaty, ha-oh- yes! - yes-oh-yes!- you-want-tokill-somebody- privileges that led to the surplus harvest. And he is expected to pick up the bills. The Nigerian politician needs thugs, also known as able-bodied-men. Because violence is prevalent and we are beginning to see the signs, every major Nigerian politician builds up his or her squad of thugs, who are conveniently labelled supporters. Their requirements are minimal. They need smoke, instruments and money and they are ready to do whatever it takes to protect their master. To understand Nigerian politics, please find out the meaning of “smoke and instruments” and the role that they play in our context. The Nigerian politician also must look the part. He has to dress well. He must surround himself with a beautiful wife or wives. When the wives are not available, the girls around him must meet certain expectations and the electorate will yell: Oga sir! The Nigerian electorate are children

of illusions: they tend to believe what they see. When they are disappointed later, they complain that politicians are bad people. They always forget that they caused the problem in the first place. They sell their stomachs before election day, they sell their votes on election day and they sell their conscience after the election. And the politicians exploit all the shortcomings. Nigeria continues to fail, because the first thing the politician does is to seek returns on his investments: he wants all the money he has spent on thugs, parties and girls back. The last thing he remembers is his duty to the people. The people, as far as he is concerned have collected their own returns upfront. He wouldn’t need them until he needs their votes again. I have given this broad portrait to paint a picture of where Nigerian politics is, and to all aspiring office seekers, including the experienced ones, I offer the following simple instructions, cynically, but we must together respect what the facts say: 1. To win elections in Nigeria, you need spiritualists, thugs and money 2. You need thugs and spiritualists because your life is not safe. You can get killed by assassins, sent by your opponents who also want the same position. 3. You need money because that is what it is all about. Once you declare your interest in politics, every one around you is likely to believe that you have saved some money aside, or stolen some money, or you have rich Godfathers who have given you money, and you are stupid enough to throw it around, and that only a gambler goes into politics. They want their own share of what you have. 4. You need the spiritualists because your opponents, believe it or not, will take your name everywhere to their own spiritualists and their minimum objective is to destroy you, or well, stop you. 5. Don’t ever make the mistake of eating outside. Important political figures in Nigeria do not eat outside. They pretend to be fasting. If you see any Nigerian politician, eating and talking anyhow at a public forum, ignore him, he is not yet ready. He is planning to move from depression mode to suicide. 6. The law says thugs are not allowed. The tradition is that every politician has a small team of able-bodied men. The state security agencies can’t protect you. Get your own men, and get lawyers too. Lawyers want to chop too. They will help you protect the thugs. 7. If you can help it, keep your wives and children out of the fray. Your opponents will make them an issue if you throw them into the game. 8. Beware of the consultants. Many of them will come to you. They know everything. They worked with that Governor and that Senator and they know everything about the media and the field of politics. Just be careful. Politics is about strategy but half the strategists out there are fake. 9. By all means, pray. Pray hard. You may not win, but if you are alive, you may try again. And don’t be squeamish about this: in Brazil, one imbecile called Adelio Bispo de Oliveira put a knife through a Presidential aspirant’s stomach and nearly killed him. In Nigeria, the situation could have been worse. Seek to be a winner, not a martyr. 10. Like the Boys’ Scout, be prepared… This is my advice to you: my short manual on Nigerian politics. There is a longer version where this came from.

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