Pension Task Force inN127m mess

...towards a better life for the people VOL. 25: NO. 61617

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ONLINE | www.vanguardngr.com

MONDAY, MAY 7, 2012

Pension Task Force in N127m mess •Auditor General queries chairman

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N150

JTF raids terrorists hideout,•P 6 kills 4

2— Vanguard, MONDAY, MAY

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7, 2012

Vanguard, MONDAY, MAY 7, 2012—3

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4—Vanguard, MONDAY, MAY

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Vanguard, MOND AY, MA Y 7, 2012—5 MONDA MAY

POCKET CARTOON

Pension Task Force in N127m mess

By EMMA UJAH, Abuja Bureau Chief

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HE controversy over the multi-billion naira pension scam, weekend, took a new dimension as the Office of the Auditor-General of the Federation, OAuGF, queried the Pension Task Force Team Chairman, Mr. Abdulrasheed Maina and directed him to refund N127, 085, 880 to the treasury.

The directive to refund the said amount followed what the OAuGF said were irregular payments to members of the team who participated in the Diaspora Biometric capturing exercise.

In a memo with reference number OAuGF/LISD/ POL.PEN/VOL.1/15 and dated March 9, 2012, the OAuGF said it discovered that several millions of naira was paid to the officers as estacode and other allowances for the purpose of travelling abroad for the exercise but that those officers did not travel.

The memo, signed by the Director, Legislature, Judiciary and Security Agencies, Mrs. F.N Anyanwu, said: “58 of the 70 officers who had been paid estacode allowances and other related allowances totaling N127, 085, 880.00 for official trips to Ghana, South Africa, United States

of America and the United Kingdom did not produce their travel documents such as passports and visas to confirm that they embarked on the assignment for which they were paid.”

The Office said further: “On enquiry, one of the officers, Mr. Adeyemi, confirmed his failure to embark on the official assignment and was yet to refund a total sum of N2, 895, 600 paid to him for the trip”.

No payment vouchers raised The OAuGF also said there were no payment vouchers raised for the payments, “contrary to Financial Regulations 601 which states that ‘all payment entries in the cashbook shall be vouched for on one of the prescribed treasury forms and under no circumstances shall a cheque be raised or cash be paid for services which a voucher has not been raised.”

It said that the Police Pension Office failed to produce through the Task Team the relevant documents like payment vouchers, cashbooks, passports, visas or biometric reports relating to New York, Atlanta, and the UK, adding: “This practice contravened the principles of

LIFEWORDS

BY PASTOR ITUAH

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IFE has its rules, study the law of life.

The biggest fallacy of most fallen men is: •Either they do not know these rules or laws •Misinterprets or misunderstand the rules •Misapply the rules One of the rules of life is the law of gravity. If you jump you can only end up down. Because you don’t know the rules does not mean the results will be different, it therefore means before you begin to live, you have to study the laws.

TAKE HEART

BY ELLA RANDLE

“We truly live in amazing times but there’s a lot of bad news going around. The mistake people make is assuming that what is on the news is all the news there is. Not true. There are plenty of amazing, wonderful, positive things going on if we’ll just watch for them. True heroes refuse to be simply swept along with the tide of pessimism.

Instead, they see opportunities, bolster hope, and provide vision.”—Bill Mansel.

Doreen Virtues conveys a message of love in her writings that allows one bring forth their creative impulses to go beyond limits and these nuggets of truth makes you really reflect deep from within your inner light, in one of her writings she says your opinion of yourself is often filtered through your own ego or someone else’s. Yet this part of the self is afraid of light so it only detects the shadows, and if you view yourself through this lens you’ll only see and view a state of awareness that lacks light. It really doesn’t matter what others think of you as your spiritual truth can’t be changed by anyone’s opinion.

Today, see yourself through the eyes of divine love, perceive your higher truth and divinity.

transparency, probity and accountability and, therefore, the total sum of N127, 085, 880 paid to the listed officers be returned to the federal government coffers.”

The OAuGF also directed Mr. Maina to recover another N3.788 million paid to five persons who were not assigned for the Police Biometric exercise.

The list of the affected persons included: Ateb Godwin, Anatasia Daniel, Ibrahim Abdulkarim, Faith Ubong and Okonyi, E. D. It was observed in the memo that there were no documented retirees in the Diaspora recorded in the Police Pension Office to warrant the trip and that in some cases, payments were made three weeks before memos were raised and approvals granted.

The OAuGF memo had an attachment of the report of the team that visited Ghana which admitted that it did not capture any Nigerian police retiree as there were no such persons resident in Ghana .

“It was established that there was no retired (Nigerian) police officer in Ghana” the report said. It was signed by four members of the team: Abraham S. O.; Adeyemo, J.A; Luke I and Mrs Gimba Rakiyat.

Mr. Maina whose team has recovered an estimated N180 billion from the Police Pension and the Head of Service Pension Officers and for which several retired and serving

servants have been dragged before the courts, has consistently said that corruption has been fighting him since he exposed the monumental corruption in the pension system.

He was, however, not available to react to the AGF query and the directive to return N127 million to the treasury as his phone was switched off.

Olaitan: Former US Ambassador, Ihonvbere, Edebiri flay killing

By SIMON EBEGBULEM

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ENIN CITYFORMER United States Ambassador to Nigeria, Dr. Walter Carrington, the governorship candidate of All Nigeria Peoples Party, ANPP, in Edo State, Chief Solomon Edebiri and former Special Adviser to the President, Prof. Julius Ihonvbere, yesterday, joined other Nigerians in condemning the murder of the Principal Private Secretary to Edo State Governor, Mr Olaitan Oyerinde at his Benin City, residence last Friday.

In a letter to Governor Adams Oshiomhole, which was jointly signed by his wife, Arese, the Carringtons said: “We are greatly saddened and shocked to learn of the assassination of your trusted Private Secretary,

NPAN condemns attacks on media houses Continues from Page 64 NPAN said it “views the attacks and the threats of more attacks as an assault on the freedom of expression and free speech and resolves that the press will not be intimidated or cowed in the discharge of its constitutional responsibility”.

The communique signed by its Executive Secretary, Mr Feyi Smith stated: •That the NPAN expresses its solidarity with the affected media houses and extends its most profound condolences to families of the victims •That the NPAN is seriously concerned about the worsening state of insecurity in the country and urges the government of the Federal Republic of Nigeria to take every necessary action to

give meaning and expression to its basic constitutional responsibility of protecting life and property •That in the light of the deteriorating security situation in the country, the NPAN has resolved to engage with the leadership of the security agencies to find solutions and to explore new ideas for resolving the challenges of insecurity facing all of us •That the media and all well-meaning Nigerians should continue to do all they can to pull the nation back from the brink by promoting national healing, understanding, accountability and justice •Finally, we thank the people of Nigeria and the international community for their solidarity, support and fortitude.

Olaitan Oyerinde. Whenever we interacted with him, we found him to be most helpful and kind.

“The most important basic of human rights are those of life, liberty and the pursuit of happiness.

Olaitan has been cruelly deprived of all three. We send our deepest condolences to you, his grieving family, colleagues and friends.”

The candidate of a coalition of progressive political parties running on the platform of ANPP, ahead the July 14, 2012 governorship election in the state, Chief Solomon Edebiri, has condoled Governor Oshiomhole and the family of Oyerinde.

Chief Edebiri called on

security agencies to fish out Oyerinde’s killers and bring them to book, adding: “The news came to us with shock. Our heart bleeds for the family of Mr. Oyerinde, the diseased and victim, and it shows the breakdown of security in the country, including Edo State.”

On his part, Prof.Ihonvbere, who described the killing as barbaric and wicked, said: “we are both members of Campaign for Democracy and worked very closely. I knew him quite well, he was very efficient and loyal democrat. It is sad that Edo State is flooded with enemies of democracy, but they will not win because darkness can never over come light.”

6—VANGUARD, MONDAY, MAY 7, 2012

Disillusion among Nigerians fuelling 2015 debate — ACN

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From left: Professor Ruqayyatu Ahmed Rufai, Education Minister; Chief Olusegun Obasanjo and Governor Sule Lamido of Jigawa State during the 20th convocation/awards ceremony of Federal University of Agriculture, Abeokuta, weekend. Photo: WUMI AKINOLA.

JTF raids militants hideout in Kano, kills four zAs Southern CAN urges FG to halt menace of terrorism

BY SAM EYOBOKA, ABDULSALAM MUHAMMAD & OLAYINKA LATONA

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ANO——THE Joint Military Taskforce and an Islamic were locked in a gun duel, yesterday, in Hotoro quarters of Kano municipality and in the process, four members of the sect were killed while many of them were arrested.

Hotoro residents were forced to stay indoors for hours, yesterday morning when a gunfight between JTF and suspected gunmen triggered pandemonium in a city that witnessed the worst church attack last week.

Residents who spoke with Vanguard on condition of anonymity said they could hear sporadic gunshots and explosions that lasted a couple of hours.

“We have practically given up hope for life due to confusion and intensity of sporadic gunshots and explosions that appeared nearer but we give glory to Allah,” a resident said.

JTF spokesman, Ikediche Iweha, told Vanguard on phone that the operation was successful, adding that “there was no casualty on the side of the security forces.”

Iweha, however, failed to clarify the number of arrests made and items recovered, saying: “What should constitute news to you guys is that we raided a hideout used by extremists this morning, four were killed

while many were arrested.”

Normalcy had since returned to the area as shop owners were seen opening for business.

Southern CAN urges FG to halt menace of terrorism Meanwhile, peeved by the unrelenting spate of terrorist bombings, killing of innocent Christians and destruction of property in different parts of the country, Christians from the 17 states of the South recently expressed concern and urged the Federal Government to take decisive measures to halt the menace of terrorism that is currently threatening the unity of the country.

The group under the aegis of Southern CAN also used the occasion to alert Nigerians that “it is becoming increasingly difficult to restrain individuals and families who are bereaved of their loved ones from thinking of revenge. The only answer to this situation is for the government to protect the people and save us from anarchy.”

In a statement by the president and secretary of Southern CAN, Most Rev. Nicholas Okoh and Dr. Joseph Ajujunwa, the umbrella body of Christians drawn from the 17 southern states of the federation, noted with dismay the recent attack carried out at ThisDay newspaper office in Abuja;the church inside

Bayero University, Kano; Church of Christ in Nigeria (COCIN) in Muna, Maiduguri and the attack on the convoy of the Taraba State Commissioner of Police.

While consoling families of all those murdered and sympathizing with those who sustained injuries, Southern CAN particularly expressed concern about the attack on the church at Bayero University, Kano Campus, “because reports indicate that majority of those killed, including the two professors are Christians from Kogi State in North Central zone of the country.

“This is unacceptable to Christians from the Southern part of the country. That the gunmen walked past several mosques on the campus and singled out the church for this dastardly act has reinforced our belief that there is an agenda by those who carried out these acts to exterminate Christians in the North and Islamise the country.”

The Southern CAN, therefore, called on governors of the 17 southern states, all political leaders, all grades of traditional rulers, Muslim leaders and all people of goodwill to join hands with the Federal Government to solve this menace that is threatening our national unity.

It said: “No section of our society, whether Christian, Muslim, atheists or adherents of other religions

should sit on the fence and watch this evil grow with the erroneous belief that it is far from them, it is a real threat to all. We are being dragged into a situation where we may ask Christian parents of Southern extraction to relocate their children or wards from universities and other tertiary institutions in the North to the Southern part of the country for safety of their lives.”

AGOS — THE Action Congress of Nigeria, ACN, has said the recordsetting mediocre performance of the Jonathan Administration and its policy inconsistencies, more than anything else, are fuelling the ongoing debate on whether or not the President will seek reelection in 2015.

Reacting to a presidency statement over the "growing furore in political circles and the media" over the President’s alleged ambition for 2015, the party said in a statement in Lagos, yesterday, by its National Publicity Secretary, Alhaji Lai Mohammed, that a government that fails to perform has created a conducive atmosphere for rumours that will inevitably overheat the polity.

According to the statement, "Mr. President, we in the ACN are not bothered about whether or not you plan to run in 2015.

What concerns us now is how to alleviate the collective suffering of the Nigerian people, who have experienced more pain than gain in one year of your administration, and have yet to reap the fruits of democracy almost 15 years of the country’s return to constitutional order under your party’s watch.

"If we must be frank, this

Alleged N6.5bn fraud: Sylva appears in court tomorrow

BY IKECHUKWU NNOCHIRI

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BUJA — THE embat tled former governor of Bayelsa State, Timipre Sylva, will tomorrow, appear before the Abuja Division of the Federal High Court to answer to a sixcount criminal charge preferred against him by the Economic and Financial Crimes Commission, EFCC. The anti-graft agency had in a suit it entered before the court on February 24, accused the ex-governor of pilfering about N6.5 billion from the state treasury while he was in office, saying the said fraud was perfected between October 2009 and February 2010.

Following allegation that the erstwhile governor deliberately thwarted efforts to serve him with a copy of the charge against him, the trial court presided by Justice

Adamu Bello, on April 2, granted EFCC leave to paste the court processes at the front gate of his house in Abuja.

Besides, the court ordered the accused person to appear before it tomorrow or risk being declared wanted.

While granting an exparte application filed by the prosecuting counsel, Mr Festus Keyamo, Justice Bello directed that a copy of the charge be pasted at 3. River Niger Street, Maitama District, Abuja, which EFCC identified as the choice abode of the governor who it said was on the run.

Mr. Oghenovo Otemu who moved the application for substituted service, lamented that spirited efforts by the agency to trace the whereabouts of the former governor with a view to furnishing him with the charge against him, proved herculean.

past one year has been like four for Nigerians who have been subjected to untold hardship and the effects of a catalogue of bad and inconsistent policies. As governance takes the back seat and meaningless politicking becomes the order of the day, many wish the four years of your administration will just pass by fast to give them the opportunity to make a better choice of leadership. This is what is driving the 2015 debate,’’ it said.

ACN reminded the President that his administration started off on a wobbly note, when it flew a satanic kite on tenure elongation that backfired and quickly eroded what many called the goodwill that ushered him into Aso Rock.

Nigeria urged to show commitment on child lead poisoning

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AGOS — HIGHLEVEL Nigerian government participation is needed at an upcoming international conference to make progress in ending a lead poisoning epidemic among children in Zamfara State, Human Rights Watch (HRW) said yesterday.

The international conference, in Abuja, the Nigerian capital, on May 9 and 10, 2012, will include representatives from the World Health Organisation, WHO; bilateral donor agencies and nongovernmental organisations. It will focus on the mass lead poisoning in Zamfara State, one of the worst such crises in modern history.

“The Nigerian government needs to act now to help thousands of children in Zamfara exposed to lead who are at risk of death or long-term disability,” said Babatunde Olugboji, deputy programme director at Human Rights Watch. “The government should come to the conference ready to commit to concrete steps and a specific timeline to ensure that the rights of these children to health and to life are protected.”

VANGUARD, MONDAY, MAY 7, 2012 — 7

Suspicious men storms Daily Trust’s publisher’s residence in Abuja

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Managing Director and Chief Executive Officer, Fidelity Bank Plc, Mr. Reginald Ihejiahi, receiving award for the fifth position in “The Great Places To Work” survey from Executive Director, Lagos and South West bank, Fidelity Bank, Mr. IK Mbagwu.

Some Northern elders shielding Boko Haram members, sponsors —Northern Christians zCall for restructuring of Nigeria into six regions

BY LUKA BINNIYAT

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ADUNA — THE Northern States Christians Elders’ Forum, NOSCEF, weekend, accused some Northern Muslim elders of shielding Muslim terrorists and their sponsors.

The forum also called for the restructuring of Nigeria into six regions as a way of maintaining the unity of the country.

On the N5 billion appropriated for the building of Almajiri Primary Schools in the North, NOSCEF said it also wanted N5 billion appropriated for Christian Mission Schools as a way of ensuring that government was not favouring Muslims over Christians.

These were contained in a communiqué issued in Kaduna and signed by its Chairman, Evangelist Mathew Owojaiye and Engr. Iliya Yusuf, Secretary at the end of the meeting of its states and national executives.

According to the communique, “the meeting noted the deterioration of security especially in the north eastern sector of Nigeria and now encroaching into the middle belt.

“Alarming still is the incessant and deliberate attacks, bombings and shootings of innocent Christians even at their places of worship, that is, churches in Kano, Plateau, Borno, Bauchi, Abuja and Gombe.

“The reason Christians do not retaliate is not because we are cowards but because that will be a sin.

It is unfair to go and attack, kill or maim people that are

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innocent, that may not even know the attackers or may even hate what the attackers are doing. What offence did the worshippers in the churches commit against the sect?

“We had given the Federal Government of Nigeria time to retrain their security forces on how to tackle terrorism. Our patience is running out. We are hereby blaming the Federal Government for any woes visited on us.

True Federalism “We are hereby calling for National Conference. We need to restructure Nigeria.

We want the six geopolitical zones to become regions with a little alteration here and there according to the wishes of the people.

“Each zone will manage its resources and pay tax to the Federal Government as it was in 1960 and 63 constitutions. The Federal Government will take off its hands from education, agriculture, water resources, industries, mineral resources, research and technology, health, power generation, women affairs, youths and sports, works and housing.

“The Federal Government will be solely in charge of Defence, Foreign Affairs, Customs and Aviation.

Almajiri schools “We Christians in the northern states welcome the idea of the Federal Government helping almajiri schools in the present set

up. We view almajiri schools as Muslim mission schools.

We Christians also have our mission schools. There is only one main difference.

The Muslim almajiri schools teach only Islamic studies while the Christian mission schools teach Christian religious studies and include secular subjects like physics, chemistry, biology which schools in Saudi Arabia, Egypt, Iran, Iraq also teach.

“The Federal Government has released N5 billion to the Muslims, we congratulate the Minister of Education for that.

“We, however, remind Mr. President that the Christians are waiting for their own N5 billion. We remind Mr. President that the constitution forbids him favouring one religion above the other."

APAPA-OSHODI EXPRESSWAY:

Govt rules out extension of ultimatum

BY OLASUNKANMI AKONI

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AGOS — THE Lagos State Government has ruled out any plan to extend the 72-hour ultimatum given to tanker and other related articulated vehicle drivers operating along Oshodi-Apapa Expressway to remove their vehicles or face wrath of the law. The ultimatum expired few hours ago.

Worried by the incessant traffic gridlock along the axis and its determination to address the situation, Lagos State Government, last Wednesday, issued a fresh four-day ultimatum to the drivers as well as owners of vehicles parked illegally to remove them from road side.

The fresh ultimatum which has the backing of the Federal Government came

on the heels of an inspection carried out by Governor Babatunde Fashola last week in Apapa area during which he discovered high level of degradation and nuisance being perpetrated by the tanker and trailer drivers in the area.

Late Wednesday evening, the state government convened an emergency meeting with major stakeholders that included National Union of Petroleum and Natural Gas Workers, NUPENG; Petroleum Tanker Drivers, PTD; Road Transport Employers Association of Nigeria, RTEAN, tank farm operators among others and warned that if by midnight of yesterday, owners of the trucks failed to remove them, the government would impound the vehicles and prosecute offenders accordingly.

BUJA — THREE sus picious men in their late thirties, last Friday, stormed the Abuja residence of the Chairman and Chief Executive Officer of Media Trust Limited, publishers of Daily Trust titles, Malam Kabiru Yusuf, threatening the security guard to open the gates for them.

Chief Security Officer (CSO) of Media Trust, Colonel Muktari Garba (rtd), in his testimony, yesterday, said the three suspicious men went to the residence of the publisher around 10 a.m. last Friday, trying to confirm from the security guard on duty, Mr. Agada, whether the house “was the one that belongs to the chief executive of one of the newspapers in Abuja.”

According to the CSO, “when the guard said no, the men who came in an ash posh Honda Civic Coupe, with number plate BL 927 RBC changed their story. They told the guard that the house was actually put off for sale and they were potential buyers who were there to inspect it; therefore he should open the gates for them to get into the compound.

The guard said further that when he refused to open the gates for them, an argument ensued

among them and one of them said: “it is the house, so let us just go.” The other one said “let us stay and see if we can inspect the compound,” the guard said.

According to the guard, the men are likely to be from Igbo ethnic group, “because when they were arguing among themselves, they were speaking in Igbo language and I got all what they were saying because I can speak Igbo.”

Colonel Garba (rtd) said the men went to the house at a time when there was virtually nobody around “except the unarmed private guard, cleaners, among other house maids. The children have left for school and their parent also left for work.”

The CSO said the motives of the people became suspicious because “there was no any sign pasted in the property to indicate that it was for sale. Also, the men were not accompanied by any of the purported estate agent.”

He said: “In fact, when the chairman contacted the landlord to find out whether he actually put the property for sale, the landlord was embarrassed beyond comment.”

He said the matter had since been reported to the relevant authorities.

New number plate, catalyst to combat terrorism —SSS DG

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BUJA — DIREC TOR-GENERAL of the State Security Services, Mr. Ekpeyong Itah, has described the new number plate project as a catalyst in the collective push to combat terrorism and other national security challenges facing the country.

Speaking during an advocacy visit by Wolrd Bank road safety consultants, Itah expressed his delight with the World Bank initiative of integrating safety components on road rehabilitation and construction in Nigeria as it would add value to traffic enforcement and proper identification of vehicle owners, across the country.

The Director-General said these innovations had made Nigeria an investment destination which would no doubt provide the potentials

for socio-economic development.

Earlier in his presentation, the FRSC Corps Marshal and Chief Executive, Osita Chidoka said the World Bank consultants were in Nigeria for a review of the FRSC enforcement capacity, in line with the World Bank Safe corridor project which seeks to infuse road safety components into road construction and rehabilitation in Nigeria.

Also speaking, the World Bank Consultant, Minze Beuving, expressed his delight at the level of data collation and management by the FRSC and road infrastructure in the FCT but urged the Federal Government to re-double efforts in the area of traffic enforcement bordering on speed limit and use of safety helmet.

8—Vanguard, MONDAY, MAY 7, 2012

Briefly

Obanikoro

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AGOS—AFTER calling 37 witnesses and tendering exhibits to back his case, Peoples’ Democratic Party’s, PDP, chairmanship candidate in Ikoyi/Obalende Local Council Development Area, Lagos State, in the October 22, 2011 council election, Mr. Babajide Obanikoro, has closed his case.

Obanikoro urged the Local Government Election Petitions Tribunal sitting in Lagos to nullify the victory of Adewale Adeniji of Action Congress of Nigeria, who was declared winner of the election by Lagos State Independent Electoral Commission, LASEIC. The petitioner, maintained that the result declared by LASIEC was not a true reflection of the results that were collated at various polling units and wards in the council.

Obanikoro also want the tribunal to declare that the announcement of Adeniji as the winner of the election by LASIEC was irregular, illegal, null and void and of no effect.

He was also want the tribunal to compel the electoral body to present him with the Certificate of Return as the validlyelected chairman of the council.

NAMA

BY DANIEL ETEGHE

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AGOS—NIGERIAN A i r s p a c e Management Agency, NAMA, yesterday, said it would soon complete the automation of the Aeronautical information Service, AIS, Department, following the arrival of equipment for the exercise.

Addressing newsmen on the World AIS Day celebration, National President of Aeronautical Information Service of Nigeria, AISAN, Mr. Paul Igene, noted that antenna for seven airports across the country had arrived the country.

Igene said NAMA management under Mr. Nnamdi Udoh had assured of the full automation of the system, beginning with the Murtala Muhammed International Airport, Lagos. He said: “With AIS automation, it will make the job easier for us and it will be real time information.”

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Lagos Assembly invites doctors, commissioner to end strike

BY OLASUNKANMI AKONI & MONSUR OLOWOOPEJO

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KEJA—LAGOS State House of Assembly has invited representatives of the striking doctors in the state's public health institutions and the Commissioner for Health Dr. Jide Idris, to appear before it today, as part of efforts to resolve the

impasse between the parties.

It will be recalled that doctors in public hospitals in Lagos under the aegis of Medical Guild had embarked on an indefinite strike, following disagreement between them and the state government.

Several lives had been lost to the ongoing strike,

as the doctors are not on their duty posts to attend to the sick.

Meanwhile, Governor Babatunde Fashola has appealed to Lagos residents to be calm, assuring that a lasting solution was in sight.

He said: “Let me apologise to all Lagosians suffering from this situation that we find

ourselves. Since 2002, government has work to improve conditions under which doctors and nurses work in the hospitals, theatre clinics and even the school of nursing.

“Hospitals don’t save lives, it is people who do so and I assure you that we will end this strike soon.''

However, placard-

carrying protesters, led by one Mr. Sesan Sobande, stormed the Lagos State House of Assembly, weekend, calling on the lawmakers to intervene and find immediate end to the doctors' strike in the interest of the suffering masses.

Speaker of the House of Assembly, Mr. Adeyemi Ikuforiji, who was initially prevented from entering the Assembly Complex by the protesters, who barricaded the entrance, promised to resolve the impasse between the parties by today, saying that the House had stepped in to find a solution.

Bi-Courtney loses in court

BY BARTHOLOMEW MADUKWE

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CELEBRATION:From left,Otunba Gani Adams, the celebrant; Otunba Fatai Olusoga, Special Adviser on Education to the Lagos State Governor and Mr. Gani Balogun, at the Odua Peoples' Congress'leader's 42nd birthday celebration in Ikeja, yesterday. PHOTO: Shola Oyelese.

Police flagoff biometric registration of automobiles

BY EVELYN USMAN

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AGOS—THE Nigeria Police, weekend, said it had concluded plans to create a data base for all vehicles, motorcycles and tricycles in the country with a view to checkmating criminal activities being perpetrated with such and also to facilitate easy apprehension of their users.

Against this backdrop, the police will today flag off the biometric registration of automobiles, during which all vehicles, motorcycles and tricycles are expected to be registered.

Apart from checkmating crime, the new scheme, code-named ‘Police Biometric Central Motor Registry, Police BCMR,' according to the Force Information Technology Officer, Mr. Ayotunde Omodehinde, would also end the era of policemen standing on the road, demanding vehicles particulars.

He said: “Police BCMR is a technological means

of attaching automobile owners’ special and unique biological traits as well as personal data to their vehicles for easy identification, authentication, protection and crime control. It operates on a smart card

and hand-held card reader with a speciallydeveloped enterprise solution for the centralisation and validation of vehicle documents.

“Its functions include : incident reporting,

vehicle-owner document expiring notification, crime watch list, forensic analysis, vehicle tracking and demobilisation, authentic means of identification among others.”

Firm appeals court order on use of Honeywell as name

BY INNOCENT ANABA

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A G O S — HONEYWELL Automation and Control Solution West Africa Limited, the Nigerian affiliate of Honeywell International Inc, has appealed against a Federal High Court, Lagos, order which restrained it from using Honeywell as part of its company name.

Justice Mohammed Liman of the lower court, had, in his ruling in a suit

by Chief Obafemi Otudeko’s Honeywell Group Limited, restrained Honeywell Automation from using Honeywell as part of its name.

The lower court had earlier granted an ex-

parte order in favour of Otudeko’s Honeywell, and later granted an interlocutory injunction against Honeywell Automation.

But, Honeywell Automation, in the appeal against the ruling, argued that Justice Liman erred in law by granting the reliefs sought by Honeywell Group in the substantive suit at the interlocutory stage, thereby denying the appellant (Honeywell Automation) fair hearing.

H o n e y w e l l Automation’s counsel, Mr. Yussuf Kadiri, argued in the appeal that Justice Liman erred in law when he held that the appellant was unable to show why the interlocutory

injunction should not be made, adding that his client’s legal right could only be determined upon full trial, and not at the interlocutory stage.

AGOS—A Lagos High Court has dismissed an application

by Bi-Courtney Limited, seeking for an extension of time, within which to comply with the payment of a N721 million judgment sum in favour of Aso Savings and Loans Plc. Bi-Courtney had secured a N500 million credit facility from Aso Savings in July 2009, with an agreed interest rate of 24 per cent per annum, while its property on Plot 70, Alexander Avenue, Ikoyi, Lagos, was used as security for the loan.

Aso Savings, through its counsel, had dragged BiCourtney to court for refusing to liquidate its indebtedness.

Bi-Courtney was pay the judgment sum in five installments, according to the agreement. Aso Savings argued that rather than paying at the agreed dates, Bi-Courtney returned to the court later with a motion seeking to enlarge time to comply with the judgment.

In her ruling, Justice Morenike Obadina held that Bi-Courtney ’s application was not only unmeritorious, but also frivolous.

Group urges joint effort in tackling environmental abuse

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AGOS—DISTURBED by the seeming environmental degradations in the country, a nongovernment organisation, Centre for Peace and Environmental Justice, CEPEJ, has called for collaborative effort against environmental abuse.

Making the call in Lagos at the inauguration of the Local Organising Committee for Tours and

Summit, scheduled to hold in Lagos in September, the National Coordinator and Chief Executive Officer of CEPEJ, Mr. Sheriff Mulade, said the summit, tagged ‘Lagos 2012’ has become imperative to replicate the Lagos State Government’s modest achievements on environment in different parts of the country.

VANGUARD, MON DAY, MAY 7, 2012—9

OLU OF WARRI'S 25TH ANNIVERSARY THANKSGIVING SERVICE Activities marking the Silver Jubilee celebration of His Royal Majesty, Ogiame Atuwatse II (CON), the Olu of Warri Kingdom, climaxed yesterday with a Special Thanksgiving Service attended by the creme de la creme of the society. AKPOKONA OMAFUAIRE captured the event.

From right, Delta State Deputy Governor, Professor Amos Utuama, Mr. Macauley Ovuzorie, Secretary to the State Government, and others.

His Majesty, Ogiame Atuwatse II, Olu of Warri, Prince Atuwatse (third right) with Her Majesty, Olori Atuwatse, Queen of Warri Kingdom and Itsekiri Chiefs at the event.

H R M Owahwa II,Okobaro (King) of Ughievwen Kingdom.

Mr. Mofe Edema, former Chairman, Warri South Local Government, and others at the service.

Members of Eminent Ladies Club of Warri at the event.

His Royal Majesty, Ogiame Atuwatse II, Olu of Warri Kingdom, and Chief Brown Omene, watching a lawn tennis competition, organised as part of activities marking his Silver Jubilee Coronation, weekend.

A cross-section of Warri women at the service.

Some Delta State commissioners at the anniversary thanksgiving service.

Agura Ladies Social Club of Warri.

10—Vanguard, MONDAY, MAY 7, 2012

Ijaw youths commend Aginighan

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CONDOLENCE VISIT: Governor Babatunde Fashola of Lagos State (right); Governor Adams Oshiomhole of Edo State (left); Governor Abiola Ajimobi of Oyo State and Governor Kayode Fayemi of Ekiti State (back row), during a condolence visit of ACN governors to Governor Oshiomhole, yesterday, over the killing of his Principal Private Secretary, Comrade Olaitan Oyerinde and the death, in a motor accident, of three journalists attached to Edo State Government House.

Oyerinde: IG offers N10m for information on assassins

BY SIMON EBEGBULEM & ALBERT AKPOR ENIN—ACTING Inspector-General of Police, Mr. Muhammed Abubakar, has offered N10 million reward to anyone with information that will lead to the arrest of the killers of Mr. Olaitan Oyerinde, Principal Secretary to Governor Adams Oshiomhole of Edo State.

Oyerinde was killed on May 4, by unknown gunmen.

Meanwhile, the Force Criminal Investigation Department, FCID, Force Headquarters, Abuja, has taken over the investigation into the murder of Oyerinde, with a mandate from Abubakar, to unearth perpetrators of the dastardly act.

Already the Deputy Inspector-General of Police DIG -in- charge of the de-

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partment, Mr. Peter Gana, was in Benin, yesterday, to get first hand information on the tragic incident. He was also said to have visited the scene of the crime, which was the deceased’s Second Ugbor GRA residence.

Announcing the N10 million reward in Benin

City, Mr. Gana, vowed that no stone would be left unturned to get Oyerinde's killers.

He said he was in Benin to complement the efforts of the state police command.

According to him, “We have opened three telephone lines for the public to assist in the inves-

Ikot Akpan Udo crisis: Royal father charges A-Ibom gov U YO—THE Akwa Ibom State Governor, Obong Godswill Akpabio, was, yesterday, urged to rebuild Ikot Akpan Udo community in Ikot Abasi Local Government Area, which was destroyed by the Amazaba Andonis of Eastern Obolo Local Government Area during their attack on the community four years ago.

Acting village head of Ikot Akpan Udo, Chief Oscar Abel, who made the appeal, said his citizens had become mendicants in several villages where they were scattered and continued to live as refugees.

Abel said the government should also delineate the Akpan Udo River which rises at Ikot Ekpang in Mkpatenin

Dickson revokes N42bn Nembe-Brass Council meeting in road contract Yenagoa.

BY SAMUEL OYADONGHA

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E N A G O A — BAYELSA State governor, Mr. Seriake Dickson, has ordered the revocation of the NembeBrass road project worth N42 billion being handled

by Moreno Construction Company, citing incompetence and lack of technical capacity as major

tigations. The governor of Edo State, Mr. Adams Oshiomhole has offered a N10 million reward to anyone with information that can lead to the arrest of those responsible for the death of the governor’s aide.”

He assured people of the state that the Police would do its best to guarantee the safety of lives of the citizenry.

reasons for the decision.

The governor also terminated the Tombia-Etegwe Road contract, linking the university town of Amassoma and the multi-billion naira Shell Petroleum Development Company SPDC Gbaran-Ubie Gas Gathering Plant to mainland Yenagoa.

The decision to revoke the road projects was taken at the State Executive

One of the contractors, Moreno, handling the Nembe-Brass Road project had allegedly received N6.8 billion from the state government with nothing tangible on ground to justify the huge sum of money collected.

The other contractor, Enerco, handling the Etegwe-Tombia Road project, was awarded the contract in 2007 as a joint venture between Shell and Bayelsa State Government.

Local Government Area and courses through Ikot Akpan Udo, Iso Otoyo and Isong Mfon to the Atlantic Ocean, as boundary line between Ikot Abasi and Eastern Obolo councils, noting that his people would never share neighbourhood with the Amazaba Andonis.

The village head said that every settlement on the right bank of the Akpan Udo river should belong to Ikot Abasi council, while settlements on the left bank of the river, after Akpabom, including Ememen, Otunene and Emereoke should belong to the Eastern Obolo council, stressing that this was the only way to achieve peace in the area.

Abel urged the governor to provide cottage industries and educational facilities to offer employment and training to youths of the conurbation.

JAW Youth Develop ment Association, IYDA, has congratulated Pastor P. Z. Aginighan on his nomination as one of the 50 Distinguished Nigerians to be honoured by Vanguard Media Limited, publishers of Vanguard Newspapers.

IYDA, in a statement by the National President and the Publicity Secretary, Daniel Amassoma and Fiyebo Eperetei respectively, described Aginighan as a man with uncompromising attributes.

It said: “Ijaw youths are proud of your dexterity, resilience and other

uncompromising attributes which you have imbibed over the years.

We also salute your expertise and variety of competence you brought to bear on your job as the Executive Director and later Acting Managing Director of Niger Delta Development Commission, NDDC. “We want to use this medium to say that we are proud of you and we urge you to continue to be a shinning example not only to Ijaw youths but to entire Nigerian youths, in your contributions to the growth and development of the country.”

Safety, health workers warned against hazards new hazards which are

BY FESTUS AHON

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G H E L L I — CHAIRMAN, Delta State branch of the Nigerian Institute of Safety Professionals, Chief Anthony Odibo, has warned safety and health workers against the hazards being created by green jobs in the country.

Odibo, who gave the warning in a chat with newsmen to mark the World Day for Safety and Health Workers, said:“The green jobs have created

unknown to the ordinary workers. Because of this, there is now the need to seek the advice of trained Occupational Safety and Health professionals, who have the potential to assess the hazards and give advice to stem it.

“While these jobs are meant to help improve the environment, revitalise the economy and create new employment opportunities, one of the greatest risks is that, in the haste to create these new jobs in large numbers, little attention is paid to their quality."

Vanguard, MONDAY, MAY 7, 2012—11

Doctor, pharmacist docked for rape in Edo

BY GABRIEL ENOGHOLASE

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CONVOCATION: From left: Vice Chancellor, Rivers State University of Science and Technology, Prof. Barineme Fakae; Rivers State Governor and Visitor to the University, Mr. Chibuike Amaechi; Pro-Chancellor of the University, Justtice Adolphus Karibi-Whyte and former Foreign Affairs Minister, Odein Ajumogobia, who got an honorary doctorate degree in law, at the 24th convocation of the University in Port Harcourt, weekend.

Olu’s 25th coronation anniversary ends with fanfare zHis reign has witnessed unity, peace, progress—Rev. Meduoye

BY EMMA ARUBI

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ARRI—THE week-long silver jubilee coronation anniversary of His Majesty, Ogiame Atuwatse II, the Olu of Warri, came to a successful end, weekend, with a thanks giving service at the Foursquare Gospel Church, Aghofen, Warri, amidst fanfare.

This came as the royal father conferred another chieftaincy title on a former Military Administrator of Delta State, Air Commodore Ibrahim Kefas (rtd), after a colourful regatta. Kefas is now Abejutwaja of Warri Kingdom, alias Asamaigho.

Speaking at the service, General Overseer of the Foursquare Gospel Church in Nigeria, Rev.

Felix Meduoye, said the Olu’s regime had witnessed tremendous achievement for Iwereland.

He said: “Going down memory lane, we cannot but give glory to God and appreciate the progressive path the Lord has taken the monarch in life. Iwere Kingdom has witnessed unity, peace

and progressive development since you (Olu) came on board,” adding that God really loves the Olu and his people.

He called on President Goodluck Jonathan to urgently tackle the problems of insecurity, power supply and poverty to give Nigerians some sense of hope and rescue them from the iron grip

Uduaghan clears air on cost of Asaba Airport runway expansion

BY KENNETH EHIGIATOR

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OVERNOR Em manuel Uduaghan of Delta State, has said the decision to level the hills and sandfill valleys at Asaba International Airport, to make way for extension of the runway

was based on the requirement of the regulatory agency, Nigerian Civil Aviation Authority, NCAA, for the airport to accommodate bigger aircraft.

The governor urged critics of the runway extension, valued at over N7.4 billion, to seek clar-

Amaechi reaffirms commitment to quality education

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IVERS State Gov ernor, Mr. Chibuike Amaechi, has said that his administration was ready to fully support all state academic institutions to provide quality education.

Governor Amaechi, at the 24th convocation of Rivers State University of Science and Technology, Port Harcourt, weekend, said his administration would continue to strive to provide a conducive atmosphere that would

of fear and hunger.

The thanksgiving service was attended by a cross section of traditional rulers from across the state and the state deputy governor, Prof. Amos Utuama, who represented Governor Emmanuel Uduaghan. The Deputy Governor read the First Lesson taken from the Book of Psalms 21: 1-13.

enhance academic excellence.

He said: “Let me reiterate the commitment of Rivers State Government to provide a conducive teaching and learning environment in the face of competing needs, but in return, government would expect the highest teaching standards and vigorous research that are the hallmarks of great institutions. We reassure you of our determination to sanitise our

educational sector and make our institutions of learning world class and envy of all.”

Promising his government's commitment to expedite action on both the Senate and Faculty of Law buildings of the University, Governor Amaechi lauded the school’s management for its visionary leadership, especially in breaking the jinx of non-accreditation of courses.

ification on the project as the topography in the area allocated for the airport required intense leveling of a hill as well as filling up of a river valley close to the airport.

Uduaghan, who spoke in an interview with reporters after assessment of work at the runway extension site, said contract for the leveling of the hilly part of the airport runway was awarded in 2011, not necessarily for the purpose of the recently concluded South-South Summit hosted in the state.

He explained that rather than tear the project apart through uninformed criticism, critics should see the airport as an infrastructure that could accelerate the development of the state, especially with state’s quest to diversify its economy from oil revenue.

ENIN—TWO med ical personnel attached to the Federal Government’s Irrua Specialist Hospital, Irrua, Edo State, have been arraigned before an Ekpoma Magistrate Court for allegedly raping a 25year-old woman, after allegedly injecting her with a substance.

The accused persons, Dr. Ndukwe Kalu, a Pharmacist and Eriyo Omoregie, a medical doctor, were accused of raping and assaulting the woman, at Ebhokhuala Quarters of Ekpoma, Esan West Local Government Area of Edo State.

Police prosecutor, Mr. Nicholas Ogbadu, told the court that the accused persons conspired among themselves to rape, raped and assaulted the woman in breach of section 355 of the Criminal Code of the defunct Bendel State, also applicable in Edo State.

The victim while narrating her ordeal before the court, alleged that Dr.

Omoregie lured her to his abode at Ebhoakhuala on February 29, 2012 with a promise to help her secure a job at the teaching hospital.

Oblivious of his intention, she told the court that she went to his house with an application letter as requested by the medical doctor, whom she had worked for in the past.

She added that in the process of delivering the letter, Dr. Kalu emerged from one of the rooms in the house and held her hands, during which time Dr. Omoregie injected her with a substance, adding that having succeeded in weakening her, Dr. Kalu allegedly raped her.

She also alleged that she sustain bruises on her face during the initial struggle, as they tried to cover her mouth to prevent her from screaming.

The accused persons pleaded not guilty to the charge, while the trial magistrate adjourned the case till May 30, 2012 for further hearing.

Airhiavebre to Oshiomhole: Stop your campaign of calumny

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DO State Peoples Democratic Party, PDP, governorship candidate in the July 14 election, Maj. Gen. Charles Airhiavbere (rtd), has called on his Action Congress of Nigeria, ACN, opponent, Governor Adams Oshiomhole, to refrain from campaign of calumny and adopt issues-based and knowledge-driven campaign.

Airhiavbere, weekend, at a rally in Ikpoba-Okha Local Government Area of the state, where over 1,000 members of ACN, Labour Party and other nonaligned groups declared support for his forthcoming governorship election, said: “The electioneering, as far as the PDP is concerned and from what you have seen, is going to be issues-based, knowledgedriven and will be wellresearched and delivered. Those who live in glass houses should not throw stones.”

Airhiavbere said the movement of people in large numbers to the PDP was an indication that the transformation train had taken off from the station for the promised land.

He challenged Oshiomhole to tell Edo people what he still has to offer after marginalising some local government areas in the state, adding, “I tell the people that there is a transformation agenda that we have come to implement when we step in the saddle on November 12, 2012, consequent upon our being elected.”

Odele passes on

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RANT Odele of the Oguaja Cottage fame is dead.

A statement by the family said Odele, a philanthropist and prominent son of Koko, died on April 28 after a brief illness. He will be buried on May 26.

He is survived by a widow, children, brothers, and sisters.

Late Grant Odele

12—Vanguard, MONDAY, MAY 7, 2012

Relocation of markets: We informed tr ader trader aderss — Abia govt

Enugu dep gov laments high rate of unemployment

BY TONY EDIKE

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NUGU—ENUGU State Deputy Governor, Chief Sunday Onyebuchi, said the high rate of unemployment in the country was constituting the biggest challenge to governments at various l e v e l s .

He lamented that the high rate of unemployment was fueling social and economic problems in the country and urged agencies charged with the mandate of creating jobs to work harder to reduce the scourge.

He commended the National Directorate of Employment, NDE, for its achievements in job c r e a t i o n .

The deputy governor made the remarks when he held talks with coordinator of NDE, Mr. Nnamdi A s o m u g h a .

The NDE coordinator was in Government House Enugu to brief the deputy governor on the activities of the directorate in Enugu S t a t e .

Onyebuchi said Enugu state government was executing key projects in the state, with a view to creating the enabling environment for development and job creation.

Ebonyi approves N88m for refuse trucks

BY PETER OKUTU

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BAKALIKI— EBONYI State government weekend has approved N88 million for the procurement of garbage equipment for effective environmental sanitation of the state.

The equipment include two trucks, three swing arm trucks and garbage bins.

Commissioner for Environment, Dr. Paul Okorie, stated this while briefing newsmen on some of the measures put in place by the government to keep the state clean.

According to him, these equipment would not only strengthen operations of the Ministry of Environment and its parastatals, Ebonyi State Environmental Protection Agency, EBSEPA, but also ensure better coverage of Abakaliki and its environs during sanitation exercises.

BY ANAYO OKOLI

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VISIT—Mr. Rufus Adewumi, Deputy Corps Commander, Zonal Public Education Officer RS2, FRSC, Lagos (2nd left); Mr. Ademola Lawal, Assistant Corps Marshal, Zonal Commanding Officer, FRSC, RS2 Lagos, Lagos and Ogun,(4th left), Mr. Victor Gotevbe, Administration Manager Vanguard Newspaper, (5th right); Mr. Hassan Balogun, Deputy Administration Manager Vanguard Newspaper, (3rd right); and others, during the Assistant Corps Marshal, Zonal Commanding Officer, Federal Road Safety Corps, FRSC, RS2 Lagos, (Lagos and Ogun] visit to Vanguard Newspaper in Apapa, Lagos.

Photo: Bunmi Azeez.

Abandoned dam: FG asked to recover N289m paid to contractors

BY TONY EDIKE

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NUGU—FEDERAL Government has been called upon to recover the N289 million mobilization fee paid to contractors handling the construction of N2.5 billion Adada dam and water treatment plant in Enugu State which was allegedly abandoned since last year.

The project, located at Adada River and Obimo in Nsukka local government Area of Enugu State, had been completely abandoned.

The project, which ground breaking was performed on June 20, last year has not moved beyond the site clearing, though grasses had overtaken the entire area cleared earlier, it was reliably gathered.

The Chairman, Senate Committee on Works and Senator representing Enugu North at the National Assembly, Chief Ayogu Eze, had earlier petitioned the Minister of Water Resources, Serah Ochekpe, demanding revocation of the contract.

Chairmen of three Local Government Areas, namely, Cornell Onwubuyi (Uzo-Uwani), Festus Ozoemene (Igbo-Etiti) and Tony Ugwu (Nsukka local council), at a joint briefing weekend, demanded the immediate arrest and prosecution of the contractor, Messrs Rudo Nigeria Ltd, for reportedly “holding the money for one year without executing the p r o j e c t ” .

They said the Federal

Government should revoke the contract, recover the mobilization fee paid and hand the project to another efficient and competent firm.

Chairman of Uzo-Uwani local government area,

Onwubuyi said the abandoned contract had generated a lot of tension within the area since the people of the area wanted it executed.

He said: “But sadly, after

one year, the project has not been executed.” He added that the project was a very technical one in such a way that any mistake in handling it would spell doom for our people".

MUAHIA – ABIA State government has said it carried along traders being relocated to new places. The government explained that the traders were in the picture right from the relocation the markets.

Special Adviser to Governor Theodore Orji on Project Monitoring, Sir Pat Mgbemena, who disclosed this, said the pockets of protests from some disgruntled few were expected.

He insisted that government took the traders into confidence before the relocation commenced.

There had been protests from some traders who resisted the relocation plan of the government.

Imagie, ex-Ajaokuta MD dies

Substandard products: SON seals E four warehouses in Onitsha

BY VINCENT UJUMADU

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W KA—THE S t a n d a r d s Organization of Nigeria, SON, has sealed four warehouses containing alleged substandard products worth about N250 million at the Bridgehead market in the commercial city of Onitsha.

The warehouses which allegedly belong to one Chief James Umezurike and Mr Cosmas Nwoye are located at the carpenters’ tools section of the market.

SON said they were allegedly coupling substandard chains of other products and selling them to the public as Carlton Chain Saws.

A team of police officers accompanied SON officials during the raid on the warehouses and the case has been transferred to the police headquarters in Awka for further investigation.

Vice Chairman of Tools and Allied Products Dealers Association, TAPDA, of Bridgehead Market Onitsha, Chief Sylvester Ahanonu, who witnessed

the sealing of the warehouses, commended SON for the action, noting that the issue of fake and substandard products had drastically affected traders

and importers generally. It was the second time in one month that SON sealed warehouses with fake Carlton Chain Saws worth several millions of naira.

Uba vs Nzeribe: Fresh legal battle begins

BY VINCENT UJUMADU

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WKA—ANOTHER legal battle for Anambra South senatorial zone has begun, as the senator representing the district, Senator Andy Uba, weekend visited the National and State Assemblies Election Tribunal in Awka where he signed documents filed by his lawyers in connection with the petition by Chief Chuma Nzeribe of All Progressives Grand Alliance, APGA, challenging his victory.

The former presidential aide, who won the rerun election on the platform of the Peoples Democratic Party, PDP, was accompanied on the visit by a team of lawyers and his supporters.

Officials of the election petition tribunal, who received the senator and his team, explained that the signing of the documents in their presence was in keeping with the provisions of the Electoral Act as amended.

Reacting after signing the documents, Uba said: “We went through this exercise before and to me, this is wasting tax payers’ money and distracting me at the senate.

“There should be an end to this so that one can concentrate in doing the work he was elected to do for his constituents.

“We won the election in April, 2011 and when we had settled down to work, the court nullified the election and my opponent was even awarded more than what he prayed for.

NGR Stanley Ogbuchukwumalu Imagie, 66, is dead.

Imagie, who was a former Acting Managing Director and Chief Executive Officer of Ajaokuta Steel Company, died after a brief illness in Lokoja.

He was a fellow and member of several professional bodies such as The Institute of Engineers, India, Fellow Nigerian Society of Engineers, Member of the Association of Iron and Steel Engineers (USA), Member of the Council of Registered Engineers of Nigeria (COREN) and Fellow Institute of Chattered Economist (FCE) among others.

A statement by his first son, Elochukwu Imagie stated that he would be buried on May 10, 2012, at his residence, No. 5 Inosi Onira Street (Behind Zik’s residence) in Onitsha.

zLate Engr Imagie

Vanguard, MONDAY, MAY 7, 2012—13

AGM—Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu (Middle); President /CEO, Transcorp Plc, Mr. Obinna Ufudo (left); and Company Secretary, Christopher Ezeafulukwe (right), during the 6th Annual General Meeting of the Company in Abuja, weekend.

Robber obberss kill SSS of offf icial, shoot another in Enugu zPolice blame spate of attacks on cult clashes

BY TONY EDIKE

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NUGU—AN official of the State Security Service, SSS, in Enugu, Mr. Petrus Onwu, was shot dead by a four-man armed robbery gang operating on two motorcycles along Ogui road in Enugu metropolis, w e e k e n d .

The gang had earlier robbed a meat shop located at the old Artisan market where they shot a female sales girl, one Miss Philomena Udealor, on the leg and carted away an unspecified amount of money from the shop.

Vanguard learnt that the robbers, who were armed with sophisticated weapons, were said to be fleeing from the market when they saw the SSS officer driving in a Mercedes Benz car with his wife and children in the opposite direction and one of them shot him in the h e a d .

The state police command, however, blamed rising wave of violent crimes in Enugu on activities of cult members who were on a revenge mission, after recent bloody clashes that claimed several lives.

The state Police Public Relations Officer, Mr. Ebereb Amaraizu, who confirmed the incident in a statement yesterday, said the command had commenced investigations into the alleged cult activities and clashes that resulted in armed robbery and murder weekend.

He said: ”On May 4, 2012, men suspected to be cultists had allegedly struck twice on different locations with a motorcycle poparlarly known as Okada, wounding one Philomena

C M Y K

Udealor, a sales girl with one meat shop located at Artisan market, dispossessing her of the daily proceeds made on that day.

“As they sited police patrol vehicle on distress call to the scene, the hoodlums fired sporadically and fled. One man later identified as Petrus Onwu, a staff of State Security Services, was also hit with a bullet on his head as he was driving with his wife in a Mercedez Benz 230E

with registration no BS138 KJA along Ogui road during the said incident,” the police spokesman said.

He said the SSS staff, who was immediately rushed to Annunciation Hospital Emene, was later confirmed dead by the doctor and his corpse was deposited at the hospital’s mortuary for post mortem examination, while Philomena Udealor with gunshot wound who was admitted at Parklane Hospital, Enugu, is said to be responding to treatment.

Fourth-tier policy: Okorocha sacks NULGE officials zAs Imo NLC drags him to IAP

BY CHIDI NKWOPARA

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W E R R I — GOVERNOR Rochas Okorocha of Imo State has ordered dismissal of officials of the Nigerian Union of Local Government Employees, NULGE, in Ehime Mbano local council area of the state for resisting deployment to his fourthtier of government.

Okorocha has equally warned that he would not hesitate to dismiss any worker that refuses posting to the controversial fourthtier government.

This came as the state branch of Nigeria Labour Congress, NLC, dragged the governor to the Industrial Arbitration Panel over “the controversial policies of his administration as it affects workers”.

Okorocha, who read the riot act during a meeting

with political office holders, also warned that the same fate awaited any person or group of persons inciting others in whatever guise against embracing the fourth-tier policy.

“Any civil servant that refuses posting will be summarily dismissed from service, including those that may hide under labour unionism to frustrate the smooth take-off of the fourth tier government in the rural communities,” Okorocha warned.

Meanwhile, the Industrial Arbitration Panel has had its first sitting but the state government was neither represented at the sitting nor wrote to explain its absence.

The State NLC Secretary, Comrade Augustine Chilakpu, promised that labour would exhaust all options in industrial dispute negotiations before going for the last option.

14—Vanguard, MONDAY, MAY 7, 2012

FG to regulate conferment of chieftaincy

HMO promises better health care

BY CALEB AYANSINA

BY VICTOR AHIUMAYOUNG

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BUJA—FEDERAL Government, weekend, said it will soon roll out requirements for the award of chieftaincy titles by traditional rulers. It also unveiled the logo, Do it right— Transform Nigeria, with a view to instill honesty and integrity in Nigerians.

Director-General of National Orientation Agency, NOA, Mr. Mike Omeri, who disclosed this in Abuja, weekend, said there should be an honest way of conferring award on those that really deserved it to motivate people.

He said it was completely out of the way to honour people because of money rather than hard work.

Omeri, who stated this at a press conference on Do it right – Transform Nigeria campaign in Abuja, called for the adoption of the second stanza of the national anthem as national prayer in all public functions to promote common creed and the cause of a people united.

PPPRA sanctions Swiss oil coy

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BUJA—IN its determination to entrench transparency and accountability in the downstream sector, the Petroleum Products Pricing Regulatory Agency, PPPRA, has sanctioned NIMEX Petroleum Ltd, an oil trading company from Switzerland over refusal to submit important documents on its operations in Nigeria.

The Executive Secretary of the PPPRA, Mr. Reginald Stanley, confirmed the sanction in an interview with newsmen in Abuja, yesterday.

It will be recalled that Stanley, last November, vowed to enthrone a regime of transparency in the downstream sector, warning petroleum marketers “to shape up or ship out of the industry.”

He said NIMEX was sanctioned for failing to provide documents relating to its shuttle vessels, which loaded from the mother vessel as well as its documentation on the cumulative load-outs.

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ANNIVERSARY: From left— Prof. Wole Soyinka, Governor Rotimi Amechi of Rivers State and Chief Ajibola Ogunsola, during the 20th anniversary of Tanus Communications Limited and Taurus Books Limited dinner in Lagos. PHOTO: Bunmi Azeez.

Rainstorm kills 18, destroys 500 homes in Zamfara

BY SAMINU IBRAHIM

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U S A U — RAINSTORM wrecked havoc in Zamfara State, weekend, killing no

fewer than 18 persons and destroying about 500 houses in Maradun, Kaura Namoda and Gusau local government areas of the state.

Vanguard gathered that

the storm that started at 9pm when residents had retired into their homes was followed by heavy rainfall that lasted for one hour.

Those who lost their lives in Maradun, according to

IITA warns against cassava exportation K

UBWA(FCT)—THE International Institute for Tropical Agriculture, IITA, has warned Nigeria against cassava export, saying the country would not get full value from the export.

IITA Station Manager, Mr. Olusegun Adunoye, made this known to newsmen in Kubwa, a

satellite town in Abuja, yesterday.

Adunoye said: “If Nigeria exports its cassava, it will only be refined and sold back to us at exorbitant prices.

We should not export our cassava. Instead, we should encourage other countries that need cassava to come and open industry in Nigeria.

“We would not get value for our effort once we start exporting cassava. There must be processing and value addition in Africa,” he added.

The station manager said the world had turned Africa to a farm where raw materials came from, describing the development as perpetual enslavement.

Yuguda blames religious, political crises on media hype

BY HENRY UMORU

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B U J A — GOVERNOR Mallam Isa Yuguda of Bauchi State has said the state had never had major incident of insecurity since 2009.

He also said what obtained was media hypes about attacks which never existed, adding that Bauchi State chapter of Peoples Democratic Party, PDP, was intact, contrary to reports in some quarters that members of the party were divided.

Speaking at the Wadata Plaza, Abuja, when he led

a delegation of the state chapter of PDP on a visit to the party’s National Chairman, Alhaji Bamanga Tukur, Yuguda said: “We are one family.

We have enjoyed relative peace in our state in the zone and since 2009 we have never had a major incidence of insecurity except media hypes about attacks here and there, which never existed.

“Politically, the entire Bauchi State today is PDP. The opposition tried to wreck havoc during the presidential elections and other elections but today have remained silent.”

On why he was at the

party ’s national secretariat, Mallam Yuguda said: “We are here not only to pay a courtesy visit on you and members of the executive, but to wish you well and to pray for you and confirm to you and assure you that our loyalty to you as our party chairman is unalloyed.”

The governor, who called for unity among Nigerians, advised the nation’s leaders not to discriminate against any Nigerian because of either his tribal extraction or the religion he confessed, adding that anything to the contrary will take such person to hell.

Zamfara State Emergency Management Agency, ZEMA, included: Rabi Yar ’jangebe, Mallama Halima, Saadatu, Aisha Yarkandare and Sirajo Garba. 10 persons were also reportedly killed in Kaura Namoda, while one person reportedly died in Gusau.

Vanguard further gathered that apart from Maradun town, several houses were damaged at Dosara, Gidan Kano, Bakyasuwa and Danbazza, all in Maardun Local Government Area.

The state has, therefore, constituted a 17-man committee to identify those affected and also assess the extent of damage by the storm.

The deputy governor, Alhaji Ibrahim Wakala who disclosed this yesterday while donating N1 million to the victims of the storm in the area on behalf of the state government, explained that the committee was expected to recommend long term solutions and further assistance to the victims.

The committee has Samaila Aliyu Maradun and Lawali Na Malam as chairman and secretary, respectively.

Wakala said the committee will collaborate with officials of the National Emergency Management Agency, NEMA; Zamfara Emergency Management Agency, ZEMA, and Maradun Emirate Council in its assignment. He added that the state government would soon provide relief materials and foodstuff to families in all affected areas of the state.

B U J A — PROHEALTH Health Management Organisation, ProHealth, HMO, a subsidiary of Nigeria Social Insurance Trust Fund, NSITF, has announced its resolve to provide quality health care services to Nigerians.

Chairman ProHealth HMO limited, Dr. Richard Uche who spoke in Abuja, said that despite the robust and fertile prospect of health insurance schemes, Nigerians were yet to take advantage of the programme.

Speaking during the Annual General Meeting of the company, Uche said National Health Insurance Schemes, NHIS, statistics showed that only about 8 per cent of the Nigerian population had a form of health insurance.

He said: “The understanding and concept of health insurance is yet to be embraced by Nigerian populace.

“The average Nigerian feels threatened by concept of health insurance and prefers his comfort zone: the out of pocket expenditure for healthcare services. This has made marketing health insurance a daunting task.”

Nigerians urged to imbibe cultural values

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ANAGING Director of Inter Press, Lagos, Chief Francis Aghedo, has urged Nigerians not to lose sight of the country ’s abundant and diversified culture.

Aghedo, whose organisation published the recently launched book, The Glorious Reign Of Omo N’Oba Erediuawa, told newsmen in Lagos that this will assist in the moral reorientation of the society.

He said: “We have been able to meet the needs of Nigerians in every area of human endeavour. With erudite scholars and prolific writers on our stable, we have blazed the trail in broadening knowledge and academic frontiers of Nigerians.”

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Vanguard, MONDAY, MAY 7, 2012 — 15

Leaders mortgaged Nigerian youths' future— Lamido

BY DAUD OLATUNJI

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B E O K U TA — GOVERNOR of Jigawa State, Sule Lamido, weekend, expressed fears over the degenerating security situation in the country and blamed the nation’s leaders for the high rate of poverty and insecurity that have placed a burden of woes on the younger generation.

Lamido, who spoke after he received a doctorate degree in Agriculture (Honoris Causa) at the Federal University of Agriculture, Abeokuta, during the institution’s 20th convocation ceremony, said the situation had compounded the poverty level amongst the people.

He said, “I think we need to ponder. If only we can ponder and interrogate ourselves what have we done wrong? If only we can individually resolve to do right, may be things will

be better. Shouldn’t our young graduands and the generation before them be optimistic of a better future for us and our children? If others can rise above their limitations why not us?

Shouldn’t we all seize our destiny in our hands?

“As we are gathered here as leaders, why don’t we do some reflections? In our

younger days as we were growing and being developed, the care and support we got from our parents, communities, religious leaders and institutions of government all combined to make us what we are today. Are we improving or even giving the same support to today’s children?

“If we cannot improve, the least we can do is to maintain the same standard. But criminally, we cannot even do that.

We only need to look around to discover our failures. And yet we are leaders— leadership is the missing link in today ’s contemporary Nigeria.”

Taraba signs N10bn roads project

BY EMMANUEL AZIKEN

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ARABA State Government is to construct four kilometres of roads in each of the 16 local government area headquarters in the state.

In a statement, Mr. Emmanuel Bello, Commissioner for Information, said the construction work would to be handled

by PW and the state-owned construction company, Taraba Road Construction

and Maintenance Agency, TARCMA. According to him, the N10 billion-construction work would be split between PW and TARCMA according to the senatorial zones.

Bello said: “The duration of the contract is 18 months and 20 per cent mobilisation is already handed out to the contractors.

“While TARCMA would handle six councils in the northern zone of the state, PW would take care of the

10 councils in the central and southern zones.”

Delta community demands replacement of SPDC contractor

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major oil and gas producing community in Warri North Local Government Area of Delta State, Opuama, has protested to Shell Petroleum Development Company, SPDC, and demanded for the immediate removal and replacement of a community contractor (names withheld), for throwing the town into darkness for the past four years.

Leaders of the community and aggrieved youths, claimed that the community had been in total darkness in the past four years despite the availability of an electricity generating plant provided

by SPDC in 2007.

According to a statement by the chairman of the community,Chief Johnbull Adaun, a representative of the Elders Council, Chief Egware Loboh, and a representative of the youths, Mr. Okotie Tunemi, the community lamented that SPDC provided the town with an electricity plant in 2007, and it was handed over to the said contractor to run and provide electricity to the town 24 hours of the day.

They said the contractor refused to supply the community with electricity.

ICAN accreditation team visits Ife Poly

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HE Polytechnic, Ile-Ife, Osun State, has played host to the accreditation team of the Institute of Chartered Accountant of Nigeria, ICAN, which paid a 4-day visit to the school’s accountancy department to ascertain the admission procedure, entry qualification, staffing,

library, among others.

According to the leader of the team, Dr. John Enahoro, the visit was not for fault-finding, but to ensure that quality and basic curriculum were strictly observed.

While commending the efforts of the management of the polytechnic in

providing facilities, Enahoro said the Department of Accountancy was going to benefit from ICAN, and that the door was opened to other departments. He added that ICAN was ready to work with the Polytechnic towards achieving its goals.

16 — Vanguard, MONDAY, MAY 7, 2012 CONTENDERS for disintegrating Nigeria are increasing. What is uncertain is along what lines they want a split of the country that was moulded 98 years ago.

Professor Ango Abdullahi, former Vice Chancellor of Ahmadu Bello University, Zaria, has lent his voice to calls for urgent consideration of “likely disintegration.”

“Until the correct things are done, we cannot ignore these facts or we continue to pretend as our leaders that this is a passing phase.

The question of a likely disintegration is not a too distant future,” Abdullahi told an Abuja gathering that included Aminu Tambuwal, Speaker of the House of Representatives, former Head of State Gen. Muhammadu Buhari, former Senate President Ken Nnamani former Minister of Defence, Gen. Theophilus Danjuma, former Governor of Lagos State Asiwaju Bola Ahmed Tinubu, and former Minister of the Federal Capital Territory, Gen Jeremiah Useni.

The two-pronged thesis for the call was that the 1914 amalgamation was a fundamental mistake and that India, Pakistan, Bangladesh and Sudan, where the British made the same

Nigeria – Mistake Since When? mistake, corrected it by separating. Must we follow their examples if it worked for them?

Abdullahi was guest speaker at the 50th birthday celebration of newspaper publisher Sam Nda-Isaiah. The rest of the session was taken up by blame shifting, blame sharing, name calling, without individuals admitting their roles in where Nigeria is.

What part did 1914 play in the quality education and attendant privileges Abdullahi and his generation had? Is 1914 responsible for insecurity in Nigeria? How did 1914 make millions of children – the leaders of tomorrow – street urchins? Surely, a country with some of the world’s best professors of agriculture

is unable to feed itself because of 1914. What laws have been passed since 1999 that resulted in improvements in the lives of Nigerians?

Matters are more depressing when Gen. Danjuma, a key player in Nigerian affairs joins the debate. “ Let us not deceive ourselves, the chief security officer of a state is the governor. Where are our Northern governors? Borno is a failed state Jigawa is almost a failed state. Kano is threatening to be a failed state,” Danjuma preached. Who was he trying to deceive? Can governors who do not command a single policeman be the chief security officer of anything? Which state has not failed?

Clearly, most of the calls for disintegration of Nigeria are rooted in frustration at the loss of relevance in the power calculations. Those keen on improving the condition of the ordinary Nigerian would find spaces in people-oriented constitutional amendments that will make the people the major factor in our politics. Today, they are not.

If managing Nigeria is challenging, disintegrating it would be more so.

OPINION

BY IBIPOBONG UDOM

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N the next couple of days, Governor Godswill Obot Akpabio will be receiving the garlands of honour as the Silverbird Governor of the Year. This award comes barely a week after the uncommon transformer was awarded the City People Governor of the year at its 15th edition which held at the Tafawa Balewa Square, Lagos, a development that further lends credence to the redefinition of governance which Akpabio has brought to bear in the state and the nation as a whole.

His ascension to the seat of power in the state could be said to be a great blessing to the state, with several achievements already recorded in the areas of education, health, agriculture, infrastructure and so on, making second to none in the entire South-South region, if not Nigeria.

For instance, Akwa Ibom State now has a standard airport which the Governor is already working on its Maintenance, Repair and Overhaul, MRO; an electronic library and the Tropicana Entertainment Centre, a great source of tourist attraction, among others, due to the Governor's passion to the transformation of the state.

Apart from these, Governor Akpabio's achievements in the aspects of road construction have been enormous. According to the Commissioner of Information and Communication, Mr Aniekan Umanah: "The state government has completed over 250 federal and state roads

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Akwa Ibom: Maintaining development momentum spanning 950 kilometers", highlighting the Governor's dedication to turning the state into a fair haven for investors.

Also of great importance is the Governor's insightful leadership in bringing about tremendous changes to the human development sector of the state, with his unbridled commitment to education as exemplified in his free compulsory education programme for primary and secondary school students and a sound empowerment programme for youths and women.

As a testimony to Chief Akpabio's strides in human development, the nobel laureate, Professor Wole Soyinka, recently commended him, citing the training of Akwa Ibom youths in specialised field of aviation and the compulsory free education programme to children of primary and secondary school age.

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ver since his first term in office, Governor Akpabio's efforts have not been bereft of recognitions and commendations; so Prof Soyinka has only joined a league of people and institutions such as the Central Bank of Nigeria, that have indicated Akwa Ibom's model of governance as a standard for other states to follow. The state was

selected as the best state in the country for 2011 for its strides in women empowerment.

Having achieved all these feats with his transformation team comprising commissioners, special advisers, special assistants and so on, many people would expect a bit of complacency.

However, Chief Akpabio, who has never been known to rest on his oars when the development of the state is at stake, has continued to reiterate his passion to maintain the momentum of development, especially with the government's aim of turning the state to an industrialised state and the economy hub in the gulf of guinea. The industrialisation agenda is very keen on the governor's mind in this second term in office.

Although he gave everyone a jolt when he dissolved his cabinet, he later showed that such step was in the interest of the state.

While swearing in the 20 new commissioners and special advisers recently, he established why his transformation agenda has been successful so far, and that is, there is zero tolerance for corruption.

Akpabio, unlike many politicians, would not forget the promise he made to his people while seeking their votes and it would suffice why his people call him the Promise Keeper and if the momentum of development is really maintained in the state, Akwa Ibom will in no time become a cynosure of all eyes in the country. *Mr. Udom, a commemtator on national issues, wrote from Abuja.

MAY 7, 2012

Eurobonds expose Nigerian banks to foreign exchange risk

By MICHAEL EBOH & NKIRUKA NNOROM HE Eurobond capital raising exercise by some Nigerian banks makes the industry vulnerable to foreign exchange risk, say financial experts.

“By issuing foreign currency denominated debt instruments, Nigerian banks are exposing themselves to foreign exchange risk,” Mr. David Adonri, Chief Executive Officer, Lambeth Trust & Investment Company Limited told Financial Vanguard.

“Despite the fact that foreign bonds offer lower rates, it is not devoid of risk.

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These banks are going to be faced with foreign exchange risk over the life of the bonds when issued,” said Mr. Jide Nwaogwugwu, Head, Research, Dunn Loren Merrifield Limited.

The experts are of the view that the capital raising exercise will put the Nigerian economy at risk, as it exposes the banks to foreign exchange risk and other risks associated with external borrowings.

However, they said the decision by the banks to raise funds from the international financial market is not a pointer to the fact that the banks have problems, but a reflection of the strength and credibility of the institutions.

A number of Nigerian banks have announced plans to shore up their capital base by seeking funds from the international financial market and multilateral institutions.

Skye Bank had, a couple of weeks ago, raised $100 million (N16 billion) from a multilateral institution at a floating coupon rate of 6.3 per cent for seven years.

Chief Executive Officer/Managing Director, Skye Bank, Mr. Kehinde Durosinmi-Etti, said the bond issuance programme is aimed at boosting the bank’s capital base, adding that the exercise will add about two per cent to its capital adequacy ratio.

While also announcing its interest to

raise foreign denominated bonds, Diamond Bank said it would seek the approval of its shareholders at its next annual general meeting, to raise $200 million (N32 billion). The bank said it would target strategic investors including the subsidiary of the World Bank, the International Finance Corporation, IFC. According to reports, other banks that have already raised funds or indicated interest to access the international financial market for bonds issuance programmes are Guaranty Trust Bank (GTB) Plc, United Bank for Africa Plc and First Bank of Nigeria Plc. A couple of years ago, a number of Nigerian firms having transactions with the international financial market had their profits eroded following the devaluation of the naira. Prominent among the companies are Flour Mills Nigeria Plc, which in recorded foreign exchange loss of N6.2 billion, while its subsidiary, Nigerian Bags ManuContinues on page 18

174.85

-0.95

2,282.00

-25.00

20.85

+0.20

113.20 98.52

-2.88 -4.02

CURRENCY BUYING CENTRAL SELLING

*From left: Chief of Staff/Head, Corporate Division, The Nigerian Stock Exchange (NSE), Mr. Bola Adeeko; Executive Director/Chief Risk Officer, First Bank of Nigeria Plc, Mrs. Remi Odunlami; Executive Director, Market Operations and Technology, NSE, Mr. Adeolu Bajomo and Group Managing Director, First Bank of Nigeria Plc, Mr. Bisi Onasanya at the First Bank of Nigeria "Facts Behind the Figures' presentation on the floor of the NSE, weekend, in Lagos.

CFA KRONER EURO POUNDS RIYAL SDR FRANC DOLLAR WAUA YEN RENMINBI

0.2929 0.3029 0.3129 27.2936 27.3818 27.47 203.0283 203.6845 204.3407 250.1808 250.9894 251.798 41.25 41.3834 41.5167 239.1353 239.9082 240.6811 168.9418 169.4879 170.0339 154.7 155.2 155.7 239.3295 240.1031 240.8766 1.9234 1.9296 1.9358 24.5325 24.6122 24.6919

CBN Exchange rate as at 04/05/2012 C M Y K

18 — Vanguard, MONDAY, MAY 7, 2012

Cover Story

Developing Entrepreneurial Spirit in Nigeria Part 2

*From left: Compliance Officer, Stanbic IBTC Pension Managers Limited, Idu Okwuosa, Head, Research and Corporate Strategy Department, PENCOM, Umaru Farouk Aminu; Chairman, Pension Fund Operators Association of Nigeria, Dave Uduanu, Managing Partner, Brandzone Consulting LLC, Chizor Malize; Head, Inspection and Investigation Unit, PENCOM, Peter Aghahowa at the Media Interactive Session organised by Brandzone Consulting LLC recently in Lagos.

Eurobonds expose Nigerian banks to foreign exchange risk Continues from page 17 facturing Company Plc, BAGCO, recorded a loss of N246 million in respect of a foreign currency denominated facility.

Telecommunication firm, Starcomms Plc, also had its profit eroded, with unrealised foreign exchange losses among other factors accounting for its N1.1 billion loss before taxation.

The quest to raise funds from the international market, according to analysts, is as a result of the collapse of the Nigerian capital market and the prevailing high interest rates in the bond market.

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r. David Adonri, Chief Executive Officer, Lambeth Trust & Investment Company Limited, said that by issuing foreign currency denominated debt instruments, Nigerian banks are exposing themselves to foreign exchange risk. He expressed skepticism about the ability and preparedness of the banks to manage the risks associated with seeking funding from the international market.

He said: “By issuing foreign currency denominated debt, Nigerian banks are exposing themselves to foreign exchange risk. There are benefits attendant to issuing foreign debt but because repayment is in foreign currency, it is suited for enterprises that earn substantial portion of their income in hard currenC M Y K

cy.

“If exchange rate stability is assured, the banks can actually make fortunes by just using the cheap foreign debt to finance the high-yielding domestic debt the government is insatiably issuing.”

Continuing, Adonri, stated, “More foreign denominated bonds would reduce the current excessive pressure on the domestic debt market with positive impact on interest rate.”

He argued that it will encourage foreign investment flow to equities, as a result of hard currency inflow that will ultimately strengthen the naira.

“Any foreign currency denominated corporate bond issued by a local company imposes exchange rate risk on the issuer. However, due to the high cost of issuing debt in Nigeria, there is justification for a local issuer to take advantage of the lower interest rates prevalent in the international capital market,” he said.

According to him, the quest was in consistent with normal banking business, saying, “Most of the banks are issuing the foreign bonds to finance domestic infrastructure development with potentials for profitable returns. This type of capital aggregation and subsequent inter-mediation by banks is consistent with the normal course of banking business,” he maintained.

He, however, said: “It would be a positive development for

the economy if exchange rate stability is maintained so that the exchange rate risk is minimized.”

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n his own view, Mr. Jide Nwaogwugwu, Head, Research, Dunn Loren Merrifield Limited, argued that despite the fact that foreign bonds offer lower rates, there are risks involved. According to him, these banks are going to be faced with foreign exchange risk over the life of the bonds when issued. “In the long run, it is not in the best interest of the economy.

However, we should continue our call on the regulatory body, the Monetary Policy Committee, MPC, to look into the downward review of the Monetary Policy Rate (MPR) which currently stands at 12.00 per cent,” he noted.

Nwaogwugwu also added that the banks need funds to increase their capital base and fund their various planned pan-African expansion, noting, however, that ideally, the money would have been sourced locally through the issuance of domestic bonds.

According to him, the current high interest regime, however, makes sourcing funds locally less appealing as it translates into raising money at rates ranging from 18 per cent to 20 per cent. “This has led to a quest to issue foreign bonds at lower rates ranging from 5.50 per cent 8.00 per cent given that the Continues on page 42

these and other objectives have since been frustrated is the huge difference between policy and execution, a problem of developing nations in general. In Nigeria, it is a key concern area because of its close relation to another national catastrophe: rampant bureaucratic corruption. The state of Nigerian corruption is so insidious that it comes with its own name – prebendalism, essentially defined as mass misappropriation of public assets by bureaucratic and political agents. International aid agencies owe much of the failure of Nigeria’s economic and poverty alleviation initiatives to an intractable bureaucracy that has steadily resisted efficient and fair practices.

Creating an aggregate socio-economic environment that is conducive to enterprise

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T the administrative level, Nigeria needs radical changes in fiscal, monetary and industrial policies to both promote new enterprises and aid existing ones. The bulk of the problem is the impaired access for small and medium enterprises to capital markets.

To improve this situation, lawmakers have made it mandatory for commercial banks operating in Nigeria to keep aside 10 per cent of pre-tax profits for equity investment in small businesses.

While it was a reasonably sensible move, it failed to meet avowed targets because the rate of actual disbursement was significantly lower than expected. In the context of cultivating a wholesome entrepreneurial spirit, policy changes can often be superficial unless followed through with flexible implementation and constant monitoring. An effective revamp of Nigerian financial policy initiatives must focus on three key objectives: Enhanced regulatory mechanisms to oversee micro-financing operations. · Increased capacity and motivation for financial aid to small businesses. · Improved coordination between various government, private sector and donor agencies.

Engineering a country-wide entrepreneurial spirit also calls for simultaneous and massive social restructuring, in a way that correctly reflects Nigeria’s historical imperatives and the poverty that blights both its urban and rural landscapes. Even though the country earned an estimated $600 billion in oil revenue in the last half century, it’s GDP per capita of $1,418 ranks among the lowest in the world. Added to that are deep-set symptoms of rural illiteracy and gender inequality, both of which are proving acutely detrimental to sustainable enterprise development.

The Nigerian Economic Policy for 1999-2003 envisaged far reaching promises on universal basic education, adult literacy and a slew of related programmes aimed at leapfrogging in order to short circuit the longer span of development.” Part of the reason

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Even though the country earned an estimated $600 billion in oil revenue in the last half century, it’s GDP per capita of $1,418 ranks among the lowest in the world

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development in the fullest sense, through fiscal, monetary and industrial policy changes. Removing conditions that create high business costs by addressing systemic deficiencies in terms of infrastructure, policy and implementation. · Attracting local private sector finance and equity with the specific objective of creating a mass base of viable small businesses. · Revamping the education sector to provide vocational, administrative and skill development training to rural and urban youths. · Maintaining political stability and building social consensus to ensure broad-based success of macroeconomic policies.

Vanguard, MONDAY, MAY 7, 2012 — 19

Administrative and budgetary independence of Central Bank of Nigeria are most vulnerable to outside influence. A central bank would be operating under imminent danger (as under the sword of Damocles) if it depends on government for funding or waits for government/legislative approval for its financial needs.

This point is best illustrated by the recent banking crisis in Nigeria in which the CBN promptly intervened in a manner that did not rock the boat. It is clear to everyone that if the CBN had waited for parliamentary debate on its lender of last resort function before injecting money into the distressed banks, there would have certainly been a run on the system even before parliament would finish debate. Even the banks that were not in grave condition would have been affected. Depositors would lose

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Introduction Central Bank of Nigeria (CBN), like most others, has the core mandate of maintaining price stability and ensuring a non-inflationary growth. It also has the responsibility to ensure a sound and stable financial system in addition to other developmental functions. These mandates and functions are peculiar to central banks all over the world, and no other institution performs such functions.

These special responsibilities are enormous and have continued to pose increasing challenges to central banks, largely because developments in the domestic and international economies create more intricacies and complexities in the financial systems and the art of central banking. Indeed, the current trend of globalisation exemplified by economic and monetary unions has increased the challenges to central banking. The effective discharge of these responsibilities requires that central banks be independent in the true sense of it, that is, shielded from political interferences, have administrative independence and instrument autonomy. In this short write- up, we present issues in the administrative autonomy and budgetary independence of central banks, highlight empirical evidence on the performance of central banks vis-à-vis independence and autonomy and country experiences. We urge against making the Governor of the central bank subservient to a politically appointed Board Chairman as well as excluding deputy governors who are executive directors as board members as these are against international best practices. We also urge against subjection of CBN budget to the National Assembly, if the operations/effectiveness of the CBN are not to be encumbered.

Issues In Central Bank Independence The global trend for efficient and effective central banking, is, a truly independent central bank with both operational and financial independence.

Financial independence involves four aspects namely; the right to determine its own budget; the application of central bank-specific accounting rules; clear provisions on the distribution of profits; and clearly defined financial liability for supervisory authorities. These are particularly relevant especially in not-well-developed political systems where central banks

this can be achieved has become critical. There is also a widespread agreement that the most important institutional arrangement in this respect is the delegation of monetary policy to a truly independent central bank and this is predicated on the causal link between monetary policy autonomy and inflation.

In the last couple of years, there has been growing evidence that central banks, which operate outside government control, have performed better in achieving their primary mandate. Such evidence include empirical investigations by: Rogoff (1985), Persson and Tabellini (1990), Cukierman (1992), Alesina and Gatti (1995), Walsh (1995), Waller and Walsh (1996), among others. Each of these works

The effective discharge of these responsibilities requires that central banks be independent in the true sense of it, that is, shielded from political interferences, have administrative independence and instrument autonomy

their money on a scale that has never been seen. Also, usually, if bankers know in advance that insolvent banks will be closed— and that lobbying to keep them open will fail, they will behave more prudently, thereby reducing the likelihood of a banking crisis.

Central bank independence has been an age long issue. As early as 1824, David Ricardo in a paper on the establishment of a national bank had advocated full independence for central banks. Similarly, Keynes in a testimony before the 1913 Royal Commission into an Indian central bank said: “it would be desirable to preserve unimpaired authority in the executive officers of the bank whose duty it would be to take a broad and not always commercial view of policy.”

Of recent, there has been a consensus in theoretical and empirical literature on the one hand and among both academic economists and central bankers on the other, that achieving and maintaining long-run price stability is the unique goal of monetary policy and this appears to be a panacea for reducing inflation. It then follows that institutional arrangement through which

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concluded that central bank independence is very important to achieve price stability. In the specific study by Cukierman, in which financial independence of central banks was investigated, 16 out of the 23 central banks surveyed determined their budget. Besides the fact that monetary delegation leads to lower basic inflation, other motivations for central bank independence are lower inflation variability and higher and more stable economic growth.

In addition, there are three other basic arguments that underlie the causal link between independent central bank and low inflation. Central bankers are exposed to strong political pressures to adopt lax monetary policies due to budgetary and seigniorage considerations. An independent central bank will be less subject to short-term political influences, thus, is better able to commit to long-term policies for promoting price stability. The Sargent Wallace argument says that in a situation of fiscal dominance, monetary authorities will sooner or later be compelled to monetize the budget deficit, ultimately generating inflation. A strong

and independent central bank can force the government to take measures to reduce the deficit or the volume of outstanding debt. This calls for financial independence. The time inconsistency argument is the major contribution by Rogoff (1985). Very often, monetary policy-making under the influence of politicians tends to focus too much on short- term considerations, which easily lead to temporary, nonsustainable outcomes (where such outcome is positive) at the expense of sustained economic growth. Politicians all over the world appear to have come to appreciate these issues and decided to remove the temptation to pursue short- term gains and make their central banks independent. Indeed, the literature has outlined that one of the solutions to the problem of time inconsistency is the delegation of monetary policy to an independent authority with a longer time horizon and a greater preference for price stability.

Moreover, a long held view, which has received rigorous analysis (Cukierman, 1986) in recent years, is that central bank independence raises policy credibility and transparency and dampens inflation expectations.

Furthermore, in the area of governance of central banks, the global practice has been and still is that the chief executive officer of the central bank chairs the Board of Directors and the Executive Directors are members of the Board of Directors. This is the practice in most countries.

Country Experiences Central banks of several countries including the US, the UK, Europe, Brazil etc., and African countries such as South Africa, Ghana, Kenya, Botswana etc., determine their budget. Some country experiences, as provided in the respective legal instruments of the central banks are listed in the attached Table.

In the most recent regional integration of a wide scale, the European Union (EU), a key element in the European Monetary Union was the formation of an independent supra-national central bank. Indeed, the EU’s view on central bank independence is defined by the provisions of Article 107 of the Maastricht Treaty: “when exercising the powers and carrying out the tasks and duties conferred upon them by this Treaty and the Statute of the ESCB, neither the ECB, nor a national central bank, nor any member of their decision-mak-

ing bodies shall seek or take instructions from Community institutions or bodies, from any Government of a member State or any other body. The Community institutions and bodies and the governments of the Member States undertake to respect this principle and not to seek to influence the members of the decisionmaking bodies of the ECB and the national central banks in the performance of their tasks”.

In addition, many of the transitional economies of Eastern Europe have adopted reforms aimed at making their central banks more independent. Furthermore, the traditional practice of central bank governor presiding over the board of directors that include all the executive directors subsists across the globe including regional banking institutions such as the European Central Bank (see appendix II).

The CBN Case The Central Bank of Nigeria has had a chequered history of autonomy since its inception in 1958, varying between autonomy and control. In the 1958 Act, the CBN was granted a measure of autonomy, which was gradually eroded until 1991 when the autonomy was restored. The erosion of the bank’s autonomy between the years coincided with military interventions in politics in Nigeria. Again, the autonomy was gradually eroded until 1999 when administrative and instrument autonomy were granted to the bank, to shield it from political pressures in the implementation of policy. From the inception of the bank, the administrative structure has been that the Governor of the CBN presided over the Board of Directors and Executive Directors or Deputy Governors had always been on the Board. This arrangement had ensured easier, smoother and faster implementation of monetary and financial policies.

Nigeria is a driving force in the WAMZ project. The establishment of the West African Central Bank (WACB) and the eventual take off of the Eco currency in 2015 is a very important step in the process of economic integration in the sub-region. The WACB will most likely operate in the manner of the ECB and will thus, be an independent supranational central bank along with the national central banks of member countries. This implies that any legislations or institutional arrangements in any of the member countries against central bank autonomy and budgetary independence will be a clog in the wheel of the monetary integration.

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20 — Vanguard, MONDAY,

MAY 7, 2012

News BRIEFS AES to host Gowon, Jonathan others at 4th conference

By PROVIDENCE OBUH ORMER Head of State, General Yakubu Gowon is to Chair the fourth Annual Conference of the Academy for Entrepreneurial Studies (AES) with President Goodluck Jonathan, who is the chief guest of honour, among seven serving governors, ministers, Ambassadors, Academia, Industries Chieftains, and a host of others.

The conference with the theme; “Strong Systems: A necessity for Building a virile Nation” is scheduled to hold on the 22 May, 2012.

“AES holds the conference yearly as an avenue to generating ideas that are germane to solving critical elements of the National development questions.”

In statement made available to Vanguard, the Academy stated that the Former president, Chief Olusegun Obasanjo, the Governor of Lagos State, Mr. Babatunde Raji Fashola and President of the Academy, Dr. Ausbeth Ajagu would deal with the topic.

According to the statement, “It is an initiative of scholars from the public and organized private sector.”

There would be goodwill messages from ambassadors and the seven serving governors who would be in attendance.

However, AES is a leading entrepreneurship, research, training and development institution in Nigeria.

It organizes an annual conference with the objectives of defining a new course for the country’s growth and development, through practical solutions to realizing Nigeria’s dream of becoming one of the top 20 economies in the world by the year 2020.

“At the end of the conference, a communiqué is forwarded to the Federal Government for consideration and possible implementation,” the Academy said.

IFC, MasterCard Foundation partner to improve financial services for Africans FC, a member of the World Bank Group, and The MasterCard Foundation today launched a partnership to increase access to financial services for an estimated 5.3 million people in Sub-Saharan Africa. Building on recent economic momentum and stability in many African economies, the project will create new

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opportunities for economically disadvantaged people to expand businesses, gain access to cost-effective financial services, and manage risk.

Through this new $37.4 million partnership, IFC and The MasterCard Foundation will help microfinance banks expand more rapidly and develop new products and cost-ef-

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fective delivery channels, while expanding coverage in new, often hard-to-reach locations. The project will also help providers to deliver low-cost mobile financial services to low-income customers.

“Disadvantaged people derive real benefits from having more control over their finances, and our partnership with

Registrar, AES Nigeria, Mr. Paul Umukoro, presenting a plaque of appreciation to the Commercial Counselor of the United States’ Embassy, Mrs. Rebecca Armand, while the President of the AES Excellence Club’s Governing Council, Dr. Ausbeth Ajagu, MFR, F.AES looks on.

Inflation: Nigerians should not sacrifice milk consumption -Wamco boss

By BABAJIDE KOMOLAFE IGERIANS should not sacrifice milk for the consumption of other goods in order to adjust to the decline in spending power due to rising inflation, says Mr. Bob Steetskamp, Managing Director/Chief Executive FrieslandCampina WAMCO. “Milk is the food with highest nutrient density. So if you have less money to spend buy milk “, he said.

FrieslandCampina WAMCO recorded 16 per cent growth in net sales, which rose to N104.9 billion for the year December 31st 2011, from N90.3 billion in 2010. The company also recorded profit before tax (PBT) of N13.9 billion, and profit after taxation (PAT) of N9.9 billion. Consequently, the company paid a dividend of N20.31 per share to shareholders at the 39th annual general meeting

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(AGM) held recently in Lagos Addressing journalists at the post AGM luncheon of the company, Steetskamp said that the reduction in fuel subsidy has reduced the spending power of the Nigerian household by about 10 per cent. He said this reduction should however not make households to sacrifice milk for the consumption of other goods.

“The major challenge is the buying power for the Nigerian household. When you look at January, on a year-onyear basis, food inflation is between 25 to 30 percent and that makes the food more expensive for Nigeria consumers. If you look at the effect of the reduction of fuel subsidy and that now has reduced the spending of Nigerian consumers by about 10 percents.

When you look at the balance year on year, a Nigeria consumer has 25 percent less spending power on foods.

Now, you that about two third of the population lives on less

than $1 per day. Now if you have only 200 naira to spend a day on food, then you have to be critical, then you have to make a selection and that would depend on how bullish is your need to have milk in that basket. So we have to to motivate Nigerian consumers to make milk a higher priority. Milk is the food with highest nutrient density. So if you have less money to spend buy milk . Therefore, we launch just few weeks ago this ‘Drink More Milk’ campaign, to motivate Nigerian consumers to drink milk everyday because it is very good for their nutrient.

He said FrieslandCampina WAMCO, as the leading manufacturer in the Nigerian dairy market is fully committed to the development of local milk production capacity in Nigeria. “Currently, the Company buys fresh milk from Shonga dairies in Kwara State and Fulani farmers in various communities in Oyo State for part of its production, the

IFC will help bring responsible financial services to a significant number of people in Sub-Saharan Africa,” said Reeta Roy, President and CEO of The MasterCard Foundation. “As we scale institutions and support new mobile financial service opportunities, this partnership will also create knowledge that will be invaluable in promoting greater financial inclusion.”

The MasterCard Foundation has become a major player in the field of microfinance, particularly in Sub-Saharan Africa, having forged partnerships worth more than $230 million since its inception in 2006. To date, these partnerships have helped provide financial services to over a million people, and provided another two million with access to financial education.

The MasterCard Foundation partnership is IFC’s largest with a private foundation.

“This partnership leverages IFC’s global expertise, local knowledge, and client networks to promote greater financial inclusion,” said Nena Stoiljkovic, IFC Vice President for Business Advisory Services. “It will help IFC clients do more for low-income customers in Africa.” Since its first microfinance investment in 1997, IFC’s involvement in microfinance has steadily increased, and IFC is now one of the top three global investors in microfinance.

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s of June 2011, IFC had directly committed over $1.2 billion in investments to microfinance projects globally, with more than 150 financial institutions in over 60 countries.

IFC invested early in mobile financial services, supporting pioneers such as WIZZIT in South Africa, and providing advisory support to MTN in Nigeria and Airtel in Madagascar. IFC’s portfolio includes six investments with dedicated e-payment service providers, and investments with financial intermediaries and mobile network operators offering mobile wallets.

IFC’s microfinance and mobile financial services programs in Sub-Saharan Africa have received support from the African Development Bank, Austrian Development Bank, the Swiss State Secretariat for Economic Affairs (SECO), and the governments of Austria, Denmark, Japan, Luxembourg, and the Netherlands.

Vanguard, MONDAY, MAY 7, 2012 — 21

News MBRELLA body for glo bal Trade unions, International Trade Union Confederation, ITUC, has called on governments to assume their responsibilities and create decent, sustainable jobs and stand up for the rights of people at work.

ITUC represents 175 million workers in 153 countries and territories and has 308 national affiliates including Nigeria Labour Congress, NLC and Trade Union Congress of Nigeria, TUC. In a May Day message, ITUC Secretary General Sharan Burrow spoke of the need to respond to the challenges of climate change in a way that has a real, demonstrable impact on carbon emissions, creates green jobs, and strengthens social sustainability.

According to the statement “We call for Global regulation of financial markets to reduce their dominant role in the global economy and restore them as a support for productive investment to meet social needs; A broad range of urgent actions for jobs and recovery, including a focus on youth unemployment, in order to create good, secure employment; Employment measures, including enhanced education and training, which will ensure the long-term generation of good, sustainable jobs; a central element of the fight against inequality and poverty; Responses to the challenges of climate change in a way that has a real, demonstrable impact on carbon emissions, creates green jobs, and strengthens social sustainability; Fair taxes that raise greater revenue from upper income groups and corpora-

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BRIEFS Egypt’s c.bank keeps key interest rates steady

Chief Client Officer GTAssur Plc. Tosin Runsewe (left) presented the most valuable player of the tournament award to Endurance Ofem of BRF cricket Club. At the 5th GTAssur T/20 cricket tournament 2012.

Global unions charge govts on decent, sustainable jobs

By VICTOR AHIUMA-YOUNG tions, fight tax fraud and evasion, close loopholes and crack down on tax havens and a Financial Transaction Tax to inhibit rapid financial transactions” “We demand making financial markets more stable and less dangerous, while generating essential revenue; Full respect for trade union rights and the promotion of strong

systems of collective bargaining and social dialogue to help build fairness and democracy.

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ore comprehensive so cial protection including through the creation of a global social protection floor supported by adequate funding; Guarantees of rights to such basic needs as food, water, housing, health, and education; Opposition to austerity measures and the maintenance of government capaci-

ty, so that they can govern effectively, deliver effective services, and be relevant and credible - including with respect to measures to influence and affect the direction of the economy; and Sustained investment in quality public services, and, especially, in quality education services, as an important means to overcome the crisis, but also as a way to build democratic societies in which people have the opportunity to live healthy, rewarding and satisfying lives.”

Inadequate funding frustrates Maritime Academy

By PROVIDENCE OBUH

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NADEQUATE funding has become a barrier to the development of the Maritime Academy (MAN) Oron, Akwa Ibom State, says Rector of the institution, Mr. Joshua Okpo.

This is attributed to an increase in the number of cadets/student admitted into the Academy.

Okpo lamented while giving an address at the Passing out Parade of cadets/student of the Academy, saying “the major challenge confronting this Academy is funding. Our vision and drive for rapid development of this school so as to bring out its best is often slowed by inadequate funding.”

Continued, he explained that with the increased intake

GYPT’S central bank kept its benchmark overnight deposit and lending rates steady, warning that although economic growth was feeble, there was a risk that inflation might accelerate.

The bank’s Monetary Policy Committee (MPC) left its lending rate unchanged at 10.25 per cent and the deposit rate at 9.25 per cent after its regular meeting, it said on its website. Gross domestic product grew by only 0.3 per cent in the final quarter of 2011 after similarly weak second and third quarters and a 4.3 per cent contraction in the first, the MPC said.

“The re-emergence of local supply bottlenecks and distortions in the distribution channels, as well as the probability of a rebound in international food prices pose upside risks to the inflation outlook,” the MPC said. Urban consumer price inflation, the most closely watched indicator of prices, eased slightly to nine per cent year-on-year in March from 9.2 per cent in February.

Core annual inflation, which strips out subsidised goods and volatile items including fruit and vegetables, quickened to 8.68 per cent in the year to March from 7.3 per cent in February.

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of the regular National Diploma, Higher National Diploma, Post Graduate Diploma and various short courses, the available facilities are obviously being stretched.

Despite effort by the Minister of Transport for better funding of the Academy, representations have been made to the National Assembly through its committee on Transport on the need to improve the financial status particularly in the area of budgetary allocation, he explained.

He implored Nigerian Maritime Administration and Safety Agency (NIMASA) to improve on the agency act 2007, which provides that the agency remits to the Academy at least five per cent of its generated revenue annually.

“Helping us to access fund to buy a vessel under the NI-

MASA can help this Academy. We are calling on the private sector stakeholders like the oil companies, marine surveyors’ outfits, boat yards, seaport terminal operators, shipping lines, crewing agents and many others who operate in Nigeria to contribute to the funding of this Academy.”

Alluding the relevance of the Academy, which can not be overemphasized, he said, continuity consistency and commitment are the three things propelling the Academy to attain the enviable maritime training institution.

He stated further that with Nigeria’s generation of over 70 per cent of the cargo in West Africa, it should be the provider of over 50 per cent of the workforce on board vessels.

However, he said the eulo-

gy that Nigeria is the giant of Africa, places on her, the challenge of building its national institutions and assets to commensurate with the status, disclosing that MAN had intensified the drive to be ranked among the two best Maritime Academies in Africa and among the top ten in the world by the year 2020.

“Beyond making Nigeria a product of skilled maritime workforce, we are striving to commence exporting manpower in this strategic area of global commerce and filling the existing gaps that propelled the government to initiate and pursue a National Seafarers’ Development Programme (NSDP) under which youths drawn from various states of the federation are taken abroad for maritime training,” he said.

Brent oil steady above $116; set for steepest weekly fall since December

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RENT crude rose above 116 per barrel on Friday with the benchmarks weekly fall since December due to concerns over the health of the global economy and easing supply disruption fears.

The jobs data will help investors gauge the outlook for oil demand growth in the world’s biggest economy amid renewed concerns the country’s recovery may be faltering.

Businesses outside the farm sector are expected to have added 170,000 jobs last month, according to a Media survey.

Brent crude gained five cents to 116.13 dollars a barrel. U.S. crude gained three cents to 102.57 dollars, after ending about 2.5 per cent lower.

“What we are seeing today is prices trading in a tight span, in a holding pattern, ahead of the jobs data,” said Victor Shum, senior partner at oil consultancy Purvin & Gertz. C M Y K

22 — Vanguard, MONDAY,

MAY 7, 2012

Tax Issues

Envoy seeks review of trade relations between Nigeria and Senegal UTGOING Nigeria am bassador to Senegal, Mr. Mathew Adole, has called for a review of trade agreement between both countries for improved economic relations.

Adole made the call on Friday in Dakar at the extra-ordinary summit of the Head of States and Governments of ECOWAS member countries.

President Goodluck Jonathan was in Dakar on Thursday to attend the summit which deliberated on the political crises in Mali and Guinea Bissau.

The president has since returned to Nigeria. Adole said that the level of informal trade between Nigeria and Senegal was much higher than that of the formal and recorded trade.

He said there was the need to review the trend within the framework of the existing binational commission of both countries.

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Niger govt approves N822m for projects in 274 wards OV. Babangida Aliyu of Niger State has approved the release of N822 million for the execution of projects in 274 wards in the state. Aliyu told the chairmen and officials of the Ward Development Committees in Minna that each of the wards would be allocated N3 million. He promised to release more money to any ward that displayed exceptional commitment in the execution of the projects.

Aliyu said the programme was initiated in 2008 to address the problem of infrastructure at the community level, adding that the government has reserved N2.8 billion for the project.

The governor said each ward committee would meet to determine the projects to execute.

He said the government had set up a monitoring committee made up of Commissioners and Special Advisers, to assess the utilisation of the fund allocated to each ward.

Aliyu said the government had spent over N3 billion on the execution of more than 4, 000 projects under the ward development programme.

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National Tax policy guidelines and rules forms were not pursued under any policy direction and, in some cases, were carried out in an uncoordinated manner.

This informed the decision of the Study and Working Groups (referred to above) that there should be a National Tax Policy that would provide a direction for Nigeria’s tax system and establish a framework that all stakeholders would subscribe to and to which they would be held accountable. It is in line with this, that the National Tax Policy is set out below.

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HE National Tax Policy seeks to provide a set of guidelines, rules and modus operand! that would regulate Nigeria’s tax system and provide a basis for tax legislation and tax administration in Nigeria. The Policy is an initiative of the Federal Government of Nigeria which is being driven by the Federal Ministry of Finance on the basis of the report from a Study Group in July 2003. The Study Group was inaugurated on 6th August, 2002 to examine the tax system and make appropriate recommendations towards entrenching a better tax policy and improved tax administration in the country.

In January 2004, a private sector-driven Working Group was constituted to review the recommendations of the Study Group. Both groups (The Study and Working) addressed macro and micro issues in tax policy and administration, Among the macro issues discussed were the drafting of a National Tax Policy, Taxation and Federalism, Tax Incentives and Tax Administration generally.

Their recommendations were further reviewed and commented upon by various stakeholders.

The reasons for reform and the decision to develop a National Tax Policy could therefore be traced back to the structure of the existing tax system and some of its inherent problems such as: the increased demand to grow internally generated revenue, which has led to the exercise of the powers of taxation to the detriment of the taxpayers who suffer multiple taxation and bear a higher tax burden than anticipated; insufficient information available to taxpayers on tax compliance requirements, which created uncertainty and room for leakages in the tax system; multiple taxation by Government at all levels, which impacted negatively on the I n vestment climate in Nigeria.

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limination of multiple taxation is therefore of major concern at all levels of Government; lack of accountability for tax revenue and its expenditure; lack of clarity on taxation powers of each level of Government / encroachment on the powers of one level / State by another; lack of skilled manpower and inadequate funding, which led to the delegation of powers of revenue officials to third par-

•Ifueko Omoigui-Okauru

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Definition of Taxation and Revenue and the Importance

These and other problems plaguing Nigeria’s tax system have not been adequately tackled for many years.

One of the reasons for this was Government’s heavy reliance on revenues derived from oil, as a result of which little or no attention had been given to revenue from other sources, such as taxation.

ties, thereby creating uncertainty in the tax system and increasing the cost of tax compliance; use of aggressive and unorthodox methods fortax collection; the non refund of excess taxes to tax payers, due to the lack of an efficient system arid funds; the nonreview of tax legislation, which had led to obsolete laws, that do not reflect Nigeria’s current realities; and the lack of a specific policy direction for tax matters in Nigeria and the absence of laid down procedural guidelines for the operation of the various tax authorities.

These and other problems plaguing Nigeria’s tax system have not been adequately tackled for many years. One of the reasons for this was Government’s heavy reliance on revenues derived from oil, as a result of which little or no attention had been given to revenue from other sources, such as taxation. However, there is now a renewed commitment by the Federal Government to diversify the economy by growing the non-oil tax revenue in order to develop a stable and sustainable revenue source to finance developmental projects.

Following from the above, it is evident that the tax system required reform. Although there had been several reforms in the past, these re-

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of Taxation in Revenue Generation The National Tax Policy is a document, which is essentially about taxation and other ancillary matters connected with taxation. It is therefore a proper premise to begin with a discussion on what constitutes taxation and distinguish it from revenue, while situating its role in the context of revenue generation.

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axation is basically the process of collecting taxes within a particular location.

In this regard, tax has been defined as “a monetary charge imposed by the Government on persons, entities, transactions or properties to yield revenue”. It has also been defined as ‘the enforced proportional contributions from persons and property, levied by the State by virtue of its sovereignty for the support of Government and for all public needs”.

Taxes may also be defined as a “pecuniary burden laid upon individuals or property to support government expenditure. A tax “is not a voluntary payment or donation, but an enforced/compulsory contribution, exacted pursuant to legislative authority” and is “any contribution imposed by government”, whether under the name of duty, custom excise, levy or other name. Taxes are therefore a financial

charge or levy imposed upon an individual or legal entity by a State or a component of the State. Atax is usually a monetary charge on a person’s or entity’s income, property or transaction and is usually collected by a defined authority at the Federal and State Level.

Taxes may be direct or indirect and may be imposed on individual basis, on entities, on assets and on transactional basis. In Nigeria, taxes are imposed on the following bases: On Individuals —Personal Income Tax - imposed on the income of all Nigeria citizens or residents who derive income in Nigeria and outside Nigeria ——Development Levy - a flat charge imposed on every taxable person typically within a State On Companies (Corporate Entities) * Companies Income Tax imposed on the profits of all corporate entities who are registered in Nigeria or derive income from Nigeria, other than those engaged in petroleum operations * Petroleum Profits Tax - imposed on the profits of all corporate entities registered in Nigeria or who derive income from oil and gas operations in Nigeria * Education Tax - imposed on all corporate entities registered in Nigeria * echnology Levy - imposed on selected corporate entities (telecommunication companies, internet service providers, pension managers, banks, insurance companies and other financial institutions within a specified turnover range) in Nigeria to support nationwide development of technology infrastructure and capacity On Transactions * Value Added Tax - imposed on the net sales value of non-exempt, qualifying goods and services in Nigeria * Capital Gains Tax - imposed on capital gains derived from sale or disposal of chargeable assets. * Stamp Duty - imposed on instruments executed by individuals and corporate entities in Nigeria * Excise Duty - imposed on the manufacture of specified goods within the Government territory collected by the Nigeria Customs Service * Import Duty - imposed on the import of goods into the Government territory collected by the Nigeria Customs Service * Export Duty - imposed on the export of goods outside the Government territory collected by the Nigeria Customs Service.

Vanguard, MONDAY, MAY 7, 2012 — 23

Money Guide

Taxation will assist govt’s transformation agenda — CITN

By BABAJIDE KOMOLAFE

Chairman, NURTW, Ondo State, Chief Oladutele Obayoriade (aka. Die the Matter), Ondo State Governor, Dr Olusegun Mimiko, Deputy Governor, Alhaji Alli Olanusi, Deji of Akure, Oba Adebiyi Adesida, Commissioner for Transport, Nicholas Tofowomo and Permanent Secretary, General Admin, Governor’s Office, Dare Aragbaye at the inauguration of the 290 Vehicles for intra and inter-city transit and free ride for students, in Akure on Wednesday. is needful in helping the economy to grow, and revenue realised will equally boost the national revenue base.

He disclosed that that tax incentives remain the driving

tool for attracting FDI. According to him, FDI incentives include low corporate and income tax rates, tax holidays, preferential tariffs, special economic zones, investment financial subsidies, re-

at the media presentation of the payment solution to Lagos City Polytechnic, in Lagos last week.

According to him, the online solution is designed and developed to address payment and disbursement apprehensions being expressed by individuals, organizations and educational institutions such as Lagos City Polytechnic at this period of the CBN’s cashless policy.

The solution saves time, reduces administrative costs and ensures immediate credit of fund. The payment solution came at a time most Nigerians, especially corporate organizations and schools need such a payment solution in order to overcome teething e-payment challenges, as it complements the CBN’s directive on cashless economy

location and expatriation subsidies, job training and employment subsidies, infrastructure subsidies and research and development support.

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Cashless Lagos: Upperlink launches PayChoice e-payment solution O

NGOING efforts to re duce cash payment in the country received a boost as Upperlink Limited launched PayChoice, an electronic payment solution designed to engineer fast and unambiguous electronic disbursement and collection of cash.

Upperlink Limited is an incorporated software development firm with specialization in internet applications and database management.

“PayChoice is an enterprise suite of payments and collections solution specifically built to address challenges being experienced by large corporate organizations, small and medium enterprise (SMEs), educational institutions and other business entities to process outward and inward payments”, said Segun Akano, Managing Director/Chief Executive Officer, Upperlink

Divesity needed to tackle modern business problems — ACCA INANCE teams in business need to embrace diversity if they are to tackle modern business problems, according to a new report by ACCA (the Association of Chartered Certified Accountants). The report, ‘Building a better business through finance diversity’ identifies five key steps for businesses to take to harness diversity within their finance teams to give them a cutting edge in a competitive business world.

‘Diversity is a word often thrown around in business without much thought,’ says Jamie Lyon, ACCA’s head of corporate sector. ‘It’s too often seen as a presentational device: what does our company look like, is the question that’s asked.

Diversity isn’t about that at all. Our research shows that the top companies take a broader perspective.

Diversity’s about how their companies think, how their processes work, and how they manage their human capital.

It’s about getting the most out of your business, taking advantage of creative tension, making sure that the way you do business doesn’t miss out on the talent you have.

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FFICIENT and reliable tax system will assist government in realizing its transformation agenda in key sectors of the economy, said the Chartered Institute of Taxation of Nigeria (CITN).

“Taxation has a way of complementing government revenue drive, and making more resources available to provide social amenities for the people”, said Chukwuemeka Eze , Chairman, Publicity Committee of the Institute.

Speaking on the relevance of taxation in terms of revenue generation ahead of the 14th Annual Tax Conference of the Institute holding at NICON this week in Abuja, the tax expert and lawyer said that funds realised from taxation can be deployed into key sectors of the economy like power, agriculture, the real sector and creation of jobs to reduce growing unemployment rate in the country.

He said resources from taxation will complement oil revenue, to solve critical problems confronting the country.

According to him, an efficient and reliable tax policy will also encourage foreign direct investment (FDI) which

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while aiding organizational efficiencies.

“PayChoice is an upgrade of the company’s flagship collection solution – BranchCollect, and unlike BranchCollect, which was developed for cash collections at bank branches, PayChoice is integrated to work with Interswitch’s Quickteller and on all channels such as ATM’s, Point of Sale (PoS) and the web thereby making it a convenient platform for payments and collections, he said”.

He further informed that the solution is customizable to meet organizations’ specific needs and it interfaces with all Nigerian banks through available switches.

The solution seamlessly integrates with organizations’ in-house Enterprise Resource Planning System (ERPS) and institutional portals.

ze said Nigeria has enough incentives in place to attract foreign investors and there are laws in place to ensure the country benefited from these investments and attendant taxes accruing to the relevant government agencies.

Besides, availability of a skilled workforce, qualitative education and infrastructure also attract FDI. ”FDI, in common with all investment, is driven by prospective rates of return.

However, the quality of power, road, rail, air and port infrastructure, economic growth rates and effective tax system are the main policydriven factors in attracting FDI,” he said.

Speaking on the annual tax conference, he said the conference will be declared open

by President Goodluck Jonathan, and it will bring under one roof tax policy makers, tax administrators, tax consultants, tax academicians, and taxpayers; with participants coming from Nigeria, Ghana, Senegal, Cote d’lvoire, Kenya, South Africa, U.S.A., U.K., among other countries.

Enterprise Bank will deliver quality service — Chairman HAIRMAN of Enterprise Bank Limited (EBL), Emeka Onwuka has reassured customers of the bank all over the country that the mandate of the current Board and Management is to continually deliver quality service to all s t a k e h o l d e r s .

Onwuka, who paid glowing tribute to the customers while speaking as Chief Host at the first Customer Forum with the Board and Management of EBL at the Ballroom of Oriental Hotel in Victoria Island, Lagos, said the present leadership of the bank has every reason to listen to every customer’s complaint, advice or suggestion because these will help to make the bank improve on its service delivery.

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24 — Vanguard, MONDAY, MAY 7, 2012

Money Guide BRIEFS AfDB holds Syndications and Co-financiers Meeting

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HE African Development Bank (AfDB) recently held its inaugural Annual Syndications and Cofinanciers meeting in London.

The event was intended to broaden and deepen the pool of AfDB’s co-financing partners for private sector operations, primarily among commercial investors, but also other development financial institutions and export credit agencies.

Over 120 delegates attended.

Speakers and panelists included senior AfDB management and representatives of major institutions active in Africa.

Sessions covered: market trends; future opportunities for investment and co-financing; regional, economic and political developments in the continent; and a number of more specific topics, from sustainable energy to risk management products.

Participants exchanged views on how official and commercial investors can best work together to increase investment into the continent. A consensus emerged on the opportunities and benefits of both sets of investors working together and the need for the AfDB and other DFIs to facilitate the “crowding-in” of commercial investors in frontier markets.

Nextzon marks seven years supporting businesses EXTZON Business Serv ices Limited, a leading enterprise building company that assists individuals and companies alike build and transform their businesses for phenomenal success has concluded plans to mark its seventh anniversary. The Chief Executive Officer and Managing Director, Mr. Macauley Atasie, who made the disclosure in a statement in Lagos said that part of the activities lined up to celebrate the occasion includes: Breakfast Session/Seminar, Annual General Meeting/Cocktail and Visit to the Orphanage.

Overwhelmed with the company’s performance over the years, Atasie explained that Nextzon has successfully set up businesses in various sectors of the aggregate economy; stressing that the company has a philosophy and business model that enables it say YES to viable start-up ideas coming from professionals from different walks of life.

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The Chief Economic Adviser to the President, (CEAP) , Dr. Nwanze Okidegbe addressed a press conference on Friday in Abuja. Pic shows the Dr. Okidegbe, 2nd right, with his team of Special Assistants, Dr. kingsley Obiora (1st right), Dr Eric Ogunleye ( left), Dr. Ogho Otit (2nd left).

Reforms necessary to tackle unemployment, poverty — Chief Economic Adviser

By BABAJIDE KOMOLAFE HERE is need for eco nomic reforms to tackle the problems of unemployment and poverty in the country says Dr. Nwanze Okidegbe, Chief Economic Adviser to the President.

Speaking at a press conference in Abuja on Friday, he said that while the economic fundamentals of the country are very strong there are the problems of unemployment and poverty. He however, expressed optimism that these problems can be significantly reduced with the right economic reform measures. He said the federal government in recognition of this is implementing various reforms to reduce unemployment and the country’s poverty rate.

He said, “I can tell you that the economic fundamentals of Nigeria are sound. Since 2004 the economy has been growing averaging about seven per cent. Our foreign exchange reserve is going up. Our debt burden is very manageable, better than that of most countries in the world. Inflation rate is about 11 to 12 per cent depending on what you use. If you use year-on-year, it is about 12 per cent, if you use the past 11 months and it is tilting down. Our foreign exchange rate is relatively stable.

In fact in 211 our economy grew by 7.3 per cent, which is

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the third highest in the world.

So if you look at these fundamentals, you will say our economy is doing very well.

But that does not mean we don’t have challenges. We do have challenges. One of our biggest challenges is unemployment. Mr. President is very concerned about this. He told me that he is not concerned about the per cent age our economy grows, but he is concerned about making sure that every Nigeria that wants to work is has a job. So unemployment is a major challenge.

As you know, every year about 1.8 Million Nigerians enter the job market and the economic is creating jobs but it is not

enough to ensure that every Nigeria has a job.

And the other challenge we face is poverty. One would expect that given the rate our economy is growing and given that we are still an agrarian society because about 42 per cent of our GDP is agriculture and agriculture is growing at about 5.0 per cent and our population is growing at about 3.0 per cent. One would expect that given those kind of data, our poverty rate would be going down. But it has not happened that way and Mr. President is concerned about making sure that our poverty rate goes down” He said the federal govern-

ment is already working to address the problem of unemployment and poverty.

“But to do that reforms are needed and these reforms are ongoing. The aim of these reforms is to provide an enabling environment for the private sector because the private sector creates more sustainable jobs. So whether it is ‘ease of doing business’, because Nigeria has not fared well in the past, there are reforms to make sure that it is easier for businesses to set shop or exit id they want to exit. We recognized that power is important in the economic mix and a lot of work is being done to make sure we significantly fit power.”

Unity Bank complies with IFRS, improves performance NITY Bank Plc has achieved full compliance with International Financial Reporting Standards (IFRS) in line with regulatory requirements.

The standards were adopted in the preparation of the bank’s 2012 first quarter unaudited accounts just submitted to The Nigerian Stock Exchange.

The IFRS are a set of internationally applicable accounting standards designed to make financial statements from different jurisdictions uniform and comparable. Nigerian banks and quoted com-

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panies are required to migrate to IFRS reporting effective January 1, 2012.

In its first quarter financial statements prepared in line with IFRS, Unity Bank Plc declared a Profit Before Tax (PBT) of N2.3 billion as against a forecast of N1.6 billion earlier released to the Nigeria Stock Exchange.

This represents an annualized PBT of N9.2 billion compared to the N7.1 billion for the full year to December 2011 based on IFRS. Consistent with its overall objective of significantly increasing its market share in

a highly competitive industry, Unity Bank Plc also grew its balance sheet by 2% as shown in its 2012 first quarter results just released to the Nigeria Stock Exchange.

Customers’ continued and growing confidence in the brand is manifest in the growth in customer’s deposits from N266 billion at the end of 2011 to N271 billion as at March 31, 2012. Loans and advances grew from N121 billion to N145 billion within the same period representing 20 per cent

Vanguard, MONDAY, MAY 7, 2012 — 25

Capital Market

First Bank to list holding company by second half 2012 … Posts 26% growth in gross earnings

By PETER EGWUATU, MICHAEL EBOH & NKIRUKA NNOROM

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IRST Bank of Nigeria (FBN) Plc , has disclosed plans to list its holding company, FBN Holdings, on the Nigerian Stock Exchange, NSE, by the second half of 2012 after getting approval

from regulatory authorities and shareholders, just as it recorded a 26 per cent growth in gross earnings for the financial year ended December 31, 2011.

Speaking at the presentation of the facts behind its figures on the NSE, Managing Director of the bank, Mr. Bisi Onasanya, said the company is

considering canceling the shares of its subsidiaries and transferring it to the holding company which will subsequently be listed on the Exchange.

He however, assured that this will be done in accordance with the necessary rules and regulation, after securing the clearance of the regulato-

From left: Ms. Nena Stoiljkovic, Vice President, Business Advisory, International Finance Corporation (IFC) and Mr. Olusegun Aina, First Vice President, Chartered Institute of Bankers of Nigeria (CIBN) at the signing of an agreement between the IFC and CIBN to improve corporate governance capacity in Nigeria, in Lagos.

2012: Access Bank to deliver improved profitability, dividend — Report

By MICHAEL EBOH OLLOWING the conclu sion of the acquisition of Intercontinental Bank, a significant improvement is expected in Access Bank Plc’s bottom line and return to investors in the 2012 financial year, according to a report by Vetiva Capital Management.

Vetiva, in its analysis of banks’ performance for the 2011 financial year, said Access Bank’s N8.994 billion dividend payout for 2011, is a pointer to the fact that the bank’s shareholders are already reaping the benefits of the recent industry reform, adding that the shareholders should expect greater benefits in the years ahead. According to the report made available to Vanguard, this trend of generous reward to shareholders is bound to improve consistently judging by the bank’s earning capacity which has placed it in a strate-

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gic position among its peers.

The report further stated that Access Bank’s earnings capacity was driven significantly by its pricing. “Specifically, Access Bank with an estimated asset yield of 11.2 per cent dwarfs GTBank and Zenith which post 10.7 per cent and nine per cent yields on their respective interest earning assets,” it stated.

Continuing, the report declared, “Access Bank earned N11.2 on every N100 interest earning asset booked on its balance sheet, which represents a distant gap to GTBank and Zenith Bank’s feat of N10.7 and N9.0 respectively.

“Beyond the core income source, Access Bank is renowned for its treasury operations, whilst refocusing its commercial banking business to build a sustainable annuity income base, which is expected to impact its profitability.”

The report stated that Access Bank’s enlarged balance sheet

and increased customer base as a result of its acquisition of Intercontinental Bank would further strengthen its treasury business. The report further stated that three of the banks analysed — Access, GTBank and Zenith Bank, demonstrated agility and resilience to shocks, adding that the banks are built to last as they posses the key attributes; right people, focus on unique goals and discipline which keep them consistently ahead of the industry.

“This view,” the report said, “is further strengthened by the fact that the capital buffer of these Banks under review should take them through the downturn in the market. With risk weighted Capital Adequacy Ratio (CAR) of 25 per cent, Access, GT Bank and Zenith can comfortably grow their risk assets by 20 per cent under our base case scenario over the next couple of years, without seasoned equity."

ry authorities, while ensuring that it satisfies all the necessary conditions.

According to Onasanya, “ In deference to Central Bank of Nigeria’s, CBN, policy that banks should divest from their non-core banking operations, First Bank will off load First Registrars and some other subsidiaries, while a holding company will be formed and all the existing subsidiaries, including First Bank, will become a subsidiary of that company.

He said the listing of the holding company will pave way for the delisting of First Bank Nigeria Plc. Onasanya disclosed that the bank’s shareholders will get equal proportion of their shares in the holding company when it is listed, while ensuring that the delisting will be conducted in a manner that is transparent and fair to the existing shareholders of First Bank.

“This will present a better deal for our shareholders, especially as they will get equal proportion of their shares in the new holding company,” he noted Onasany further stated that the new structure will give shareholders the opportunity to own stakes in a bigger company, having a number of subsidiaries.”

He said the bank is poised to deliver consistent and good returns to investors and other stakeholders.

While commenting on the financial performance for 2011, the First Bank boss said, “ The bank recorded 27.6 per cent growth in gross earnings to N296.3 billion as against N232.1 billion in 2010; 45.6 per cent growth in operating income to N259.2 billion as against N178.1billion in 2010 ; Non-interest income contribution of 25.6 per cent as against 24.3 per cent in December 2010; 93 per cent growth in profit before tax and exceptional item to N65.6 billion as against N34 billion in 2010; 48 per cent growth in profit before tax to N50.1billion as against N33.8billion in 2010; Cost to income ratio: 56.8 per cent from 67.0 per cent in 2010.”

Other performance indicators show: After tax ROAE 13.0 per cent from 9.6 per cent in 2010; After tax ROAA 1.8 per cent as against 1.4 per cent in 2010; Earning Per Share( EPS) was N1.40 as against N0.95 in 2010; Net interest margin: stood at 8.0 per cent from 6.1 per cent in 2010.

BRIEFS Nestlé Nigeria records 113% Q1 profit

By CHINEDU IBEABUCHI

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ESTLÉ Nigeria Plc said it recorded N7.349 billion Profit before Income Tax in the first quarter of 2012, revealing an impressive 113 per cent increment as against N 3.455 billion in the same period of last year.

In a statement by its Corporate Communications and Public Affairs Manager, Dr. Samuel Adenekan, the provisional and unaudited results announced by the company shows that revenue grew by 41 per cent to N 28.674 billion compared to N 20.383 billion in the corresponding period of 2011.

Gross Profit rose by 42 per cent from N 11, 997 billion in contrast to N 8.419 billion recorded in 2011. While Profit for the period jumped by 140 per cent to N 6.173 billion from N 2.571 billion in 2011.

Commenting on the results, the Board of Directors of the company described the Revenue and Profit development in first quarter as exceptional and in line with management expectations.

GSK rejects idea of buying AstraZeneca RITAIN’S biggest drug maker GlaxoSmithKline has no interest in buying smaller rival AstraZeneca, GSK’s chief executive said in response to a shareholder question at the company’s annual meeting.

AstraZeneca, Britain’s second-biggest drugmaker, has suffered repeated drug development setbacks, stoking fears about its long-term prospects as its existing top-selling medicines go off patent and it has few obvious replacements.

The company’s future is in flux, given the early departure of CEO David Brennan from June 1, leading some analysts to speculate it might become a takeover target.

Merging the two Britishbased firms could, in theory, generate big cost savings.

But GSK CEO Andrew Witty told investors that buying a big company such as AstraZeneca would be “very distracting” at a time when GSK’s own pipeline of experimental drugs enters a potentially rich period.

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26 —Vanguard, MONDAY, MAY 7, 2012

Capital Market Analysis

Facebook hopes to raise more than $10bn in IPO

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ACEBOOK Inc plans to raise more than $10 billion this month in Silicon Valley’s largest-ever IPO, a source familiar with the IPO told Reuters.

The world’s largest social network is pricing its initial public offering at a range with a midpoint of $31.50 per share, seeking a valuation of more than $85 billion, a second source said.

The mammoth IPO will be priced in the high-$20s to mid$30s a share, a range expected to be announced later on Thursday when the company releases its latest prospectus, one of the sources said.

The Wall Street Journal earlier reported the IPO’s pricing range, citing sources as saying that at that range, the world’s largest social network would have a valuation of between $85 billion and $95 billion.

Facebook, which plans to list its stock on Nasdaq under the ticker “FB”, will begin meeting with investors on Monday to promote a massive offering eclipsing Google Inc’s 2004 coming-out party.

Troubled Faisal Bank up for sale

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AISAL Private Bank, struggling since the collapse of property schemes in the Gulf and beyond, is up for sale after failing to raise enough money to meet the Swiss regulator’s minimum capital requirements, its chief executive said on Thursday.

Chief Executive Mark Koch told Reuters the Genevabased bank, which called itself the first Islamic private bank, is talking to three potential suitors.

Faisal’s parent, Bahrainbased Ithmaar Bank ITHMR.BH, will be selling part or all of its stake, he said.

“We have had to seek a new shareholder to take a majority position, and have identified several interested parties over the last five months,” Koch told Reuters.

He said the group was in advanced negotiations with two financial institutions from the Gulf and one from Britain.

Faisal Private Bank was one of a group of institutions that initially thrived on up front payments from investors.

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HE ongoing probe of the near collapse of the Nigerian cap ital market by the House of Representatives ad hoc committee, last week, took a dramatic turn as controversies ensued on issues that bothered on the three acquired banks by Asset Management Corporation of Nigeria (AMCON), and the composition of the corporation’s board members.

The three banks that were taken over by AMCON are former Afribank Nigeria Plc, Bank PHB Plc and Springbank Plc. The probe session that took place last week, Wednesday, came after the committee had failed to complete the probe within the seven days period given to it by the House of Representatives.

The committee had earlier postponed hearing for the second consecutive time after it had earlier invited former Central Bank f Nigeria (CBN) Governor, Professor Charles Soludo, embattled former Group Managing Director, (GMD) of defunct Intercontinental Bank Plc, Mr. Erastus Akingbola and former convicted GMD of defunct Oceanic Bank Plc, Mrs. Cecilia Ibru to appear before it unfailingly on April 20, 2012.

It will be recalled that the committee was given one week to complete the hearing and report its findings and recommendation to the House of Representatives.

The Chairman of the ad hoc committee, Hon. Ibrahim El-Sudi, on arriving at the hearing room, last week, Monday, said the opening prayer and called off the hearing, having earlier suspended scheduled hearing the penultimate week.

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The stakeholders, operators and regulators who came for the hearing was disappointed when the postponement were announced.

El-Sudi while postponing the sitting till Wednesday May 02, 2012, said the sickness of his father had led to non communication between him and Channels Television.

Continuing he said, “It will be unwise to hold the hearing, without live coverage by the accredited television house.

Ladies and gentlemen, we have in the house, the Managing Director of Asset Management Corporation of Nigeria (AMCON), Director General of Securities and Exchange Commission (SEC), CEO of Nigerian Stock Exchange (NSE) and all other stakeholders in the capital market. We have Managing Directors of various banks and Deputy Governor of CBN.

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istinguished ladies and gentlemen, we have the movers and shakers in the capital market all here. But unfortunately, last week, I had to cut short my schedule for those of you that were here, to attend my sick father, thank God he is recovering. Basically, we are supposed to be covered live by Channels Television, but unfortunately because I was not around, there was breakdown in communication and they are unable to cover us live today.”

On the controversies over alleged nationalisation of banks, there was a disagreement on the status of three of the eight recapitalised banks, whose licences the CBN revoked in 2011 and were renamed by the Asset Management Company of Nigeria as Enterprise Bank (formerly

•CBN Governor, Sanusi Lamido Sanusi

Capital market probe: Committee, CBN disagree over nationalisation of banks

By PETER EGWUATU Bank PHB), Keystone (Spring Bank) and Mainstreet (Afribank). The CBN Deputy Governor, Dr. Kingsley Moghalu, claimed that the three banks were not “nationalised” as widely believed.

The committee, however, disagreed and insisted that by the nature of their acquisition by the CBN, AMCON and the Federal Ministry of Finance, they were now the property of the Federal Government.

According to the committee, “The entire board members of AMCON are appointed by the CBN who is supposed to be regulating. You will just be regulating yourself.

Meanwhile, Dr. Kingsley Moghalu, Deputy Governor, Financial System Stability, who represented the Governor of CBN, Mallam Lamido Sanusi, argued that the term, “nationalised,” still did not apply to the banks because their boards were intact, while there were private individuals among the directors. Nationalisation of these banks will occur if the public treasury was taken to bailout these institutions.

According to him, “No tax payer money was involved in bailing out the banks. On the institutions you have talked

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BRIEFS

According to the committee, “The entire board members of AMCON are appointed by the CBN who is supposed to be regulating. You will just be regulating yourself.

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about, the number of board members has worked extensively responsibly in supervising the management of AMCON. It is the result from these institutions that was taken over that matter.”

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lso at the hearing, the apex bank admitted that it ought to have paid more attention to the banking sector which before the crash of the capital market in 2008 had contributed about 70 percent of the capital market capitalization. He blamed other regulatory institutions — namely Securities and Exchange Commission (SEC) and Nigerian

Stock Exchange (NSE) for the worrisome state of the capital market. He told the committee that the insider abuses had an impact on the capital market because the banking sector controlled over 60 per cent of the stocks as of 2008.

Giving the details of the crisis, Moghalu said , “ Spring Bank Plc, for instance, had 85 per cent non-performing loans; while FinBank Plc’s non-performing loan was 47.5 per cent Also Bank PHB Plc had 40.8 per cent non-performing loan; Oceanic Bank International Plc, 44.35 per cent; Afribank Plc, 47 per cent; Intercontinental Bank Plc, 48 per cent; and Equitorial Trust Bank Limited, 57 per cent.

“The banks were already on life-support before the CBN intervened in 2009. A strategy used by the banks to deceive investors in the capital market was to buy back their own shares, using depositors’ money.” He cited the case of Afribank, which he said engaged three brokerage firms to buy back its shares, “using 1,258 fictitious subscribers.”

“So, we had a situation whereby 66 per cent of the bank’s offer was non-existent, but they used depositors’ funds,” he added.

Similarly, Moghalu said Intercontinental Bank bought back 3.4 billion units of its shares.

Vanguard, MONDAY, MAY 7, 2012 — 27

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28 —Vanguard, MONDAY, MAY 7, 2012

Cash-Less Lagos the event of litigation. Moreover, a recent research by The Ponemon Institute and Symantec conducted in 2010 indicated that the average organizational cost of a single data breach has increased to $7.2 million, costing companies an average of $214 per compromised record.

Integrity: In a cash-lite society, many companies will have to rely on electronic payment solutions whereby they are able to credit third party accounts (e.g. suppliers, contractors, etc.) belonging to business partners from their offices. In some cases, adequate controls like segregation of duties have not been built into the new payment mode and such transactions are left to be done by a dedicated computer operator. An intentional or accidental alteration of a supplier’s bank account number in the supplier’s master file containing several suppliers’ details may lead to the operator crediting an “unknown supplier” with a significant portion of the company’s shareholders value during the monthly payment run. In addition, lack of proper reviews and segregation of duties may lead to a company losing funds at the click of a button just as my friend gave away his cash accidentally.

BRIEF Banks, IT firms ready for cashless Lagos Fair CTIVITIES are in high gear for the Cash-less Lagos Fair being organized by BusinessWorld Newspaper in close collaboration with the Central Bank of Nigeria (CBN).The CBN-driven Cash-less Policy which has been the talk of the country in the last several months is aimed at reducing the level of cash transactions in the economy and encouraging the migration towards alternative electronic payment methods.

The event which begins on Wednesday, May 9 and end on Friday ,May 11, will have Dr Lamido Sanusi Lamido, Governor Central Bank of Nigeria (CBN) as Special Guest while Professor Anya O Anya will function as Chairman of the occasion. The event which will take place at the Lagos Television ground, Agidingbi, Ikeja will be attended by numerous visitors who would want to have first hand drill from bankers and ICT experts.Friday , the last day of the event has been tagged schools day and has been fully booked by many schools.

This will bring Nigeria to international standard of electronic banking and other financial transactions and will also help to reduce the incidence of fraud and physical heist of cash associated with carrying large amounts of cash around.

BusinessWorld investigations reveal that most of the banks and other financial institutions in the country which have bought into the policy are now in high level of activities to participate in the Fair.

Indications have emerged that banks and IT firms are fully prepared to come and showcase their physical readiness to start implementing the cash-less as soon as the green light is given by the Central Bank. Investigations reveal that banks, other financial institutions and IT firms are coming to the Fair to display and demonstrate the application of sophisticated Point of Sales gadgets, among others, which they have already acquired in readiness for the take-off of the cash-less policy.

For instance, First Bank, Access Bank, Fidelity Bank, Zenith Bank, First Bank, MTN, StanbicIBTC, Standard Chartered Bank, Skye Bank, Sterling Bank, Diamond Bank, Guaranty Trust Bank are among the institutions that have fully booked their stands as major sponsors and participants.

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vailability: Many organizations across the globe usually base the performance of the CEO on the increase in shareholder value achieved within the organization’s financial year. This basis for evaluation usually results to the CEO focusing primarily on bloating the organization’s shareholders’ value. In achieving this, the company’s resources are then directed towards gaining competitive advantage, aggressive marketing, package and company-product promotions and the likes.

Surprisingly, many CEOs are yet to understand the holistic picture that an increase in shareholders’ value is driven by competitive advantage which in turn drives customer retention and acquisition.

Customer acquisition and retention usually depends on trust which is a result of service quality and availability. The availability of services crucially depends on the continuous availability of Information and Information Systems.

For instance, you visit some stores or companies in Nigeria today and you are told that the POS link is down. A customer wants to pick up his goods after crediting a

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•Lagos Governor Babatunde Raji Fashol

Cashless Society – Why CEOs should pay more attention to information security few weeks ago, my friend wanted to credit my bank account with 18,000 Naira via internet banking but he mistakenly transferred 180,000 Naira.

When he got the SMS alert for this transaction, he immediately called me and requested that I should help reverse the overage and apologized for the error. I replied that I had already given thanks to God for the overage and since I cannot reverse my thanksgiving, he should forget about it.

Beyond the joke, we can imagine the consequences of a company committing such an error, and the possibility of fraudulent initiatives enjoying its full course; In our new „Cashless Society , stories like the one above are likely to abound!

A “cashless society” is a policy that minimizes the use of cash by providing alternative channels for executing financial transactions. The name of this policy was changed to Cash-Lite policy by the Bankers Committee towards the end of 2011 to correct the impression that Nigerians would completely stop using cash to transact businesses.

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By TOPE S. ALADENUSI

As more organizations include smartphones and tabloids into their corporate environment, they stand a risk of unauthorized disclosure of confidential information and high susceptibility to external attacks and insider threat.

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However, despite the change in the policy name, the associated risks are yet to change and organizations must pay adequate attention to this.

For CEOs that have the overall responsibility for the corporate governance in most organizations, the firm link between current CEO priorities and Information security cannot be overemphasized. As more companies depend on information technology (IT) to conduct their businesses, it is becoming obvious that there can be no corporate governance without IT governance, and information security is a bulwark of IT governance in a cash-lite society.

There are three core areas of

information security: Confidentiality; (ensures there are no unauthorized disclosures of a company’s information), Integrity; (ensures that information is reliable and prevents unauthorized alteration) and Availability; (ensures that systems are up and running when needed).

Let’s cite examples of these three core areas to illustrate why CEOs should pay more attention to information security in a cash-lite society: onfidentiality: Since most of the financial transactions in a cash-lite society occur in electronic form, there is a greater propensity for confidential information to be stored and transmitted electronically.

As more organizations include smartphones and tabloids into their corporate environment, they stand a risk of unauthorized disclosure of confidential information and high susceptibility to external attacks and insider threat.

An unauthorized disclosure of such electronic information may violate certain agreements reached with business partners and customers and has the potential to negatively affect their loyalty or erode part of a company’s shareholders value in

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company’s account online, and he is told by the customer service officer that his payment cannot be immediately verified due to issues with internet connectivity. As minor as all these availability excuses may sound, they can negatively affect a company’s bottom line.

Clearly, the era of CEOs interpreting information security as an incurred cost in running the business may be inconsistent with a cash-lite economy.

An up-to-date information security program should be put in place to provide competitive advantage by achieving customer retention and acquisition, which is the keystone to the business ability to yield revenue. This may include having and implementing a risk-based information security strategy; performing an end-to-end review and reengineering of the company’s processes to align with the new cash-lite policy; ensuring agreements with third parties and payment processors are reviewed and appropriate covers exist for the company; ensuring continuous security monitoring as threat landscape changes every day in a cash-lite society.

CEOs should begin to view information security not only as a core asset in business but also as a crucial business enabler. Not viewing information security in this manner may impede the ability to develop their organization to its full potential in a cash-lite society. * Aladenusi is an Information Security specialist at Akintola Williams Deloitte and can be reached at taladenusi@deloitte.com.

Vanguard, MONDAY, MAY 7, 2012 — 29

30 — Vanguard, MONDAY, MAY 7, 2012

Insurance BRIEFS Weather insurance losses approach $2bn in April

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ON Benfield, the global reinsurance intermediary and capital advisor of Aon plc has released the latest edition of its Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during April.

Published by Impact Forecasting, the firm’s catastrophe model development center of excellence, the report reveals that a series of severe weather events across central and southern sections of the United States caused upwards of USD1 billion in insured losses. Economic losses were even higher.

During the month’s most notable outbreak, multiple central states sustained widespread tornado, hail and wind damage. At least 94 tornado touchdowns were recorded during a 72-hour stretch. In Kansas, an EF-3 tornado just outside the city of Wichita affected at least 777 homes and 165 businesses. Additional tornado damage occurred in southwest Iowa and northwest Oklahoma, killing at least six people. Total insured losses from the outbreak were expected to reach into the hundreds of millions of dollars.

Client’s boyfriend denies he knew of dementia in annuity case

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HE boyfriend of a client at the center of annuity agent Glenn Neasham’s case claimed he did not know the client had dementia even though an investigator’s report showed he admitted knowing — just months after an annuity sale that led to Neasham’s theft conviction.

Neasham was convicted of felony theft from an elder in California court in October for selling an Allianz MasterDex 10 indexed annuity to an 83year-old woman said to have been diagnosed with dementia in 2003.

The prosecutor said Neasham knew about the client’s disorder but Neasham said he did not see any signs of it in two meetings with her. Two of his assistants also testified that they did not see any indications of dementia. The prosecutor, Rachel Abelson, admitted that she did not prove in court that Neasham knew about the dementia.

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NAICOM gets tougher on terrorism financing, money laundering Stories by ROSEMARY ONUOHA HE National Insurance Commission, NAICOM, has mandated insurance, reinsurance and broking firms to regularly organise Anti Money Laundering/Combating Financial Terrorism, AML/CFT training for their staff and all facilitators for such trainings must be duly approved by NAICOM. Failure to get NAICOMs approval before engaging any facilitator for AML/CFT training will henceforth attract sanctions for any defaulting company.

Assistant Director (Inspectorate), Head AML/CFT Unit of NAICOM, Mr. Sam Onyeka, said this at the 2012 AML/ CFT workshop for compliance and internal audit officers of insurance, reinsurance and CEOs of insurance, broking firms in Nigeria last week which was organised by NAICOM. Onyeka said “Companies are required to submit AML/ CFT employee training program to the Commission and Nigerian Financial Intelligence Unit, NFIU, not later than the 31st December every financial year against the next year. The aim of this requirement is to enable the Commission and NFIU conduct analyses of the submitted training plan and determine their suitability or otherwise and to direct rectification as may be appropriate.”

Onyeka said the move became necessary because many insurance operators choose to engage facilitators that lack basic knowledge on insurance.

According to Onyeka, companies are required to institute and maintain regular training for employees and to take appropriate measures from time to time to expose their employees whose duties include the handling of relevant aspects of the insurance business to the company’s procedures for verifying clients as well as training them in the recognition and handling of transactions carried out by, or on behalf of, any person who is, or appears to be, engaged in money laundering or terrorist financing.

The timing, coverage and content of the employee training programme, according to Onyeka, will vary from institution to institution, depending on the size, nature of serv-

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ice and products, customer base, global reach and resources.

His words “Training should, therefore, be tailored to meet perceived needs of the organisation. A comprehensive training plan should cover the following staff: compliance officers, new staff-as part of the orientation program for those posted to the front office, operations staff, especially underwriting, accounting reinsurance and claims, internal control/audit staff, managers as well as any other category

of staff as may be deemed necessary”.

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nyeka said that the awareness raising and training should cover not only the need to know the true identity of the policyholder, but also, where business relationship is being established, stating “There is need to know enough about the type of business activities expected in relation to the policyholder at the outset, to know what might constitute suspicious transaction at a future

date, and the circumstance that would give rise to reasonable grounds for suspicion.”

Onyeka added that policyholder identification otherwise called “Know Your Customer (Policyholder) requirement is probably the most important requirement and underpins all anti-money laundering procedures and that companies are required to obtain satisfactory evidence of identity of all proposers while the evidence must be satisfactory from both objective and subjective standpoints.

President of Sierra Leone, Bai Koroma, shaking hands with immediate past president of WAICA, Mr F.K. Lawal,while Mr Biola Ekundayo, MD WAICA (left) and Secretary General Willie Coker looks on.

Investor, NCRIB disagree on operational licence R. Koya Olateru-Olag begi has appealed to the Nigerian Council of registered Insurance Brokers, NCRIB, to avail foreign investors more opportunity to come into the Nigerian broking market.

According to Olateru-Olagbegi, there are a lot of Nigerians and foreigners abroad who want to come into the country to do business but some bureaucratic bottlenecks do not allow them.

Olateru-Olagbegi, who said that he has been practicing as an insurance broker in Atlanta, Georgia for over 20 years even as he is the first Nigerian that started insurance brokerage there, stated that allowing genuine investors who have practiced abroad for a long time to come and do business in the country will help in building the economy of the country.

While revealing his ordeal in the process of trying to estab-

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lish a broking firm in the country, Olateru-Olagbegi said “I have a plan to start an insurance broking firm in the last ten years, but the Nigerian insurance brokerage system has not been favourable to Americans. For one reason or the other they don’t want us to come in. And the reason according to them is that they don’t know how to evaluate American education compared to London and India which they are familiar with.”

Olateru-Olagbegi alleged that the NCRIB has been sitting on his folder for the past ten years and even when the matter was taken to the National Insurance Commission, NAICOM, they were referred back to NCRIB. Olateru-Olagbegi who said that he is trying to come into the Nigerian insurance sector to share knowledge with Nigerians said “I have been to

NCRIB so many times and they have held my file for a long time. I have been to their seminars, workshops and even attended everything they have done. But for one reason or the other, they said that it is the Chartered Insurance Institute of Nigeria, CIIN that will certify if I am qualified.”

He said that he has provided all necessary information to check if he is really qualified but for one reason or the other the NCRIB choose to do things the way they are doing.

Having waited so long, Olateru-Olagbegi said that his next line of action is to buy into an existing broking firm.

According to Olateru-Olagbegi, there is no level playing field for Nigerian Americans to come in and do business in the country, adding “There has been a lot of Indians who have been approved since I sent in my application. I don’t think it is fair.

Vanguard, MONDAY,

MAY 7, 2012 — 31

Insurance

How disciplined are insurers to run a tariff free market? count cover requirements and group distribution in gender, income, age and occupation.

Managing Director of FBN Life Assurance, Mr. Val Ojumah, also said that rating should not be controlled, adding, “I do not believe that I need to team up with anybody to control rating it is not in the best interest of the consumer.

Tariffs have long died in the international market. We shouldn’t be regulating commissions and tariffs.”

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ANY insurance opera tors are calling for a free pricing market, but are they disciplined enough to uphold professionalism, ROSEMARY ONUOHA writes.

The new era Mr. Annur Sekar, Chairman/ Managing Director New India Assurance Co. Ltd, which is the parent body of Prestige Assurance Plc, said that India operated a tariff regime for a long time, meaning that prices were fixed by a controlling body. But in 1998, the tariff regime was abolished and free pricing was introduced into

The way forward

•Ladipo Ajayi

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RISK pricing in the Nigerian insurance industry has always been a controversial issue. While some operators believe that rates should be regulated, others are of the opinion that there should be free pricing of risks to suit the peculiarity of the client at any point in time.

Speaking in favour of rate fixing, Managing Director of Custodian & Allied Insurance Plc, Mr. Wole Oshin, in whose tenure the agreement was signed, said that the agreement represents the modest efforts by the NIA leadership to enthrone professionalism, sound ethics and best practices in the conduct of insurance business.

Managing Director of Consolidated Hallmark Insurance Plc, Mr. Eddie Efekoha, said that tariff regime is imperative because the industry is in dire need of change adding “To curtail all the confusion that arose over the years, Naicom should define what adequate premium is and is not.”

According to him the ‘no premium no cover’ dictum is open ended as such defaulters can get away with anything.

NIA Chairman, Mr. Olusola Ladipo-Ajayi, stated that tariff regime is relevant in building a virile insurance industry. In his words “We are the ones that put up this market agreement by ourselves and we are the ones that signed the agreement voluntarily so the implementation should not be difficult because it is our own regulation made by ourselves for ourselves and to be implemented by ourselves.”

The need to capture as much as possible a larger market share have made operators to be at each others throat coupled with every form of unethical practice both from within and outside the industry.

Since underwriters refused the tariff system, they can not just afford not to pay genuine claims when the need arises

the Indian market. According to him, Nigeria should do the same.

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nother person who be lieves that tariffs should not be regulated is the Managing Director of Anchor Insurance Plc, Mr. Ademayowa Adeduro. For Adeduro, underwriters should remain dynamic in their product pricing.

He stated that he would be ready to accept any business that appeals to his company even if every other underwriter rejects such business.

He said “Some insurance companies charge high premium rates because of the huge management expenses that they are saddled with. For an insurance firm like Anchor that runs a relatively low management expenses, we can afford to price products lower than a company that runs a very long management chain.

What matters most is that an insurance firm remains in

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business and gives returns to investors rather than remaining rigid and in the long run fail to give returns to its investors.”

Also agreeing that tariffs should not be regulated is the Managing Director of Sovereign Trust Insurance Plc, STI, Mr. Wale Onaolapo who said that there is no specific rate for all risks and that his company will price risks as they come. According to him, clients all have their peculiarities as such one standard cannot be applied to everybody.

Onaolapo reiterated that the insurance industry need to do a deeper study of the sociological make up of a client and what kind of product can suit which particular people.

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or Managing Director of UBA Metropolitan Life Insurance, Jacques Coetzer, underwriters should underwrite each piece of business individually taking into ac-

Following the failure of the market agreement, it has become obvious that the tariff regime has subtly been abolished. However, a general consensus by both operators and stakeholders alike is that underwriters must pay all genuine claims irrespective of amount of premium charged on the risk.

For Coetzer, underwriters must take deliberate decision not to get involved in such sharp practices that have been the bane of the industry all along.

Ojumah, on his part stated that insurance operators must discharge their duties with utmost professionalism while the regulator must ensure that genuine claims are paid by operators irrespective of the rate charged. He said “If we need to grow this business of insurance there are things we need to do as operators, and there are things we need to do as regulators. If an insurance company wants to pay 30 per cent commission or charge a risk at a discount, all the regulator has to ensure is that it pays that commission it says it is going to pay and make sure that it has enough reserve to cover the business, otherwise it should close shop.”

For Olusola Ladipo-Ajayi, NIA Chairman, since underwriters refused the tariff system, they can not just afford not to pay genuine claims when the need arises. He said “If underwriters like, let them give free policies. If they like, when somebody comes to their office, they should give them free policy but seal it to make it valid, then give them money rather than take money from them. They are free to do whatever they like. But when the chips are down and there is claim, they cannot escape.

Because when your customer brings you to our complaint bureau, you have to do whatever the complaint bureau says.”

BRIEFS Justices meet to vote on health care case HILE Americans have to wait until June, Supreme Court justices will know the likely outcome of the historic health care case by the time they go home this weekend.

After hearing arguments this week, the justices will vote Friday morning on the fate of President Barack Obama’s health care overhaul, the core of which mandates that Americans must have health insurance.

In the weeks after this meeting, individual votes can change as the justices read each other’s draft opinions and dissents.

But Friday’s vote will be followed by the assignment of a single justice to write a majority opinion, or in a case this complex, perhaps two or more justices will tackle different issues. That’s where the hard work begins, with the clock ticking toward the end of the court’s session in early summer.

The late William Rehnquist, who was chief justice for nearly 19 years, has written that the court’s conference “is not a bull session in which off-the-cuff reactions are traded.” Instead, he said, votes are cast, one by one in order of seniority.

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Drier conditions expected as La Nina recedes

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HE La Nina weather pat tern responsible for much of the increased rainfall in eastern Australia over the past two years is over, according to the Bureau of Meteorology.

It says La Nina conditions are no longer present in either the Pacific Ocean or the atmosphere, and conditions have returned to neutral.

“The 2011/12 La Nina began last spring, and played a key role in prolonged wet conditions for eastern Australian throughout summer and into early autumn,” the bureau says.

This resulted in southeast Australia recording its wettest seven-day period in history, while the combined effect of two back-to-back La Nina events over 2010/11 and 2011/12 contributed to Australia’s wettest two-year period on record. The bureau’s Manager of Climate Prediction Services, Andrew Watkins, says the tropical wet season will still continue until the end of April with the possibility of tropical cyclones and further heavy rain.

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Vanguard, MONDAY, MAY 7, 2012 — 35

Mortgage Finance BRIEFS US mortgage rates fall to new record lows VERAGE rates for 30-year and 15-year fixed mortgages in the US fell to new record lows last week.

Mortgage buyer Freddie Mac said that the average interest rate on 30-year loans fell to 3.84 percent, lowest since long-term mortgages began in the 1950s. That’s below the previous record of 3.87 percent in February. The 15-year mortgage, a popular option for refinancing, dropped to 3.07 percent, also a record. The previous record of 3.11 percent was hit three weeks ago.

Cheaper mortgage rates haven’t done much to boost home sales. Rates have been below 4 percent for all but one week since early December.

Yet sales of both previously occupied homes and new homes fell in March. Analysts suspect some of that weakness reflected a warm winter, which pulled sales into January and February that would normally occur later, in the spring buying season.

Still, many potential buyers can’t qualify for loans or afford higher down payments required by banks. Home prices in many cities continue to fall, making those that can afford to buy uneasy about entering the market.

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•Architectural masterpiece

Lagos develops new PPP framework to boost housing Stories by YINKA KOLAWOLE AGOS State government has developed a new framework aimed at enhancing Private-Public- Participation (PPP) in the development of affordable housing in the state.

Special Adviser to the Governor on Housing, Mr. Jimoh Ajao, disclosed this while highlighting the achievement of the Fashola administration in the area of housing development.

According to him, “the new framework is to ensure that there is progress in the quest for making accommodation available and affordable to the middle and low income brackets.”

He explained that the PPP arrangement is geared towards removing bottlenecks, thereby, strengthening private sector participation in housing delivery process. Under the arrangement, he noted, that the government will provide the land for the project, while the developer injects their funds to build the houses. He added that the profit made by government from the partnership would be invested in the Lagos HOMS project to fund construction of social housing scheme.

Ajao said new housing schemes being developed across the state are targeted at middle and low-income earners, under the state’s Lagos

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HOMS Scheme. He said approval has been given for construction of more low cost housing estates in the state to address the challenge of housing deficit especially among the lower income earners in the society. He declared that government decided to partner with the private sector in housing delivery in order to increase the number of housing delivery in the state. He said the ministry has developed a template for appraising interested private developers as well as facilitating necessary sign-off from relevant ministries and government agencies on behalf

of these developers.

Ajao noted that the scheme was initially planned to commence with existing stock of houses provided by the Ministry of Housing, “but to ensure that it is sustainable and homogeneous, prototype building was designed to be replicated all over the state and ensure provision of more houses to sustain it.”

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he housing projects, ac cording to Ajao, include 192 units of 1, 2, 3-bedroom apartments located in Igbogbo area of Ikorodu, near the existing Oba Adeboruwa Housing

Estate, Igbogbo, Ikorodu; Gbagada Phase 2B, where six blocks of 72 different units are being cited, while another 72 units of 1, 2, 3-bedroom apartments is being located in Ikeja.

Similar house types are being planned in Iloro, in Agege and Rotimi Sotomiwa area of Ikorodu. He said the Igbogbo scheme was awarded last month and work has commenced, while the Gbagada Phase 2B was awarded in December 2011 and the 72 units Ikeja scheme was also awarded last month.

LCCI urges use of local technology in housing delivery AGOS Chamber of Com merce and Industry (LCCI) has called on professionals in the housing sector to promote the use of local technology in the development of housing in the country.

Mr Goodie Ibru, President, LCCI, made the call at the th opening ceremony of the 12 edition of the Lagos Housing Fair with the theme: “Indigenous Technology and Housing Delivery” in Lagos. “There is a hidden potential in housing and the fair provides a veritable platform to discuss it.Housing professionals should find local based tech-

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nology as it can deliver modest and cheaper houses and make mass housing a reality,” he said.

Represented by Mr Remi Bello, Deputy President of the chamber, Ibru remarked that housing was very crucial to Lagos State as an emerging mega city. He however noted that the organised private sector has not been finding it easy with the town planning authority in the state in view of many levies being imposed on the operators.

In his remarks at the occasion, President, Association of Professional Bodies of Nigeria (APBN), Mr Segun Ajan-

lekoko, said that theme of the fair captured the need to work together to achieve the common goal of mass housing.

Represented by Mr Tunde Adebayo, Executive Secretary of APBN, he said that the promotion of indigenous technology in housing delivery was a way of promoting unity in the country.

Mrs Tinu Aina-Badejo, Permanent Secretary, Lagos State Radio Service, co-organisers of the Fair, said that the 2012 edition of the event was aimed at directing the nation’s attention to promoting homemade technologies.

Fitch rates Consumers Energy’s mortgage bonds ITCH Ratings has assigned an ‘A-’ rating to Consumers Energy ’s $375 million issuance of 2.85 percent first mortgage bonds due 2022.

Proceeds from the offering will be used primarily to redeem a portion of the $375 million aggregate principal amount of 5.375 percent first mortgage bonds, due 2013.

The new notes rank equally in right of payment with existing senior secured obligations of Consumers Energy. The Rating Outlook is Stable.

Stable Outlook Fitch’s rating of Consumers Energy reflects a constructive regulatory environment in Michigan.

Utility rate orders are determined within 12-months of filing, utilize forward test years, allow for returns moderately higher than the national average, and include mechanisms designed to facilitate the timely recovery of fuel costs and non-fuel costs.

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36 —Vanguard, MONDAY, MAY 7, 2012

Mortgage Finance BRIEFS PMI plans N5bn capital base N line with planned reforms in the mortgage sector, a primary mortgage institution (PMI) has commenced moves to shore up its shareholders’ fund to N5 billion.

Managing Director, Intercontinental Homes Savings and Loans Plc, Mr. Adeniyi Akinlusi, said at its third annual general meeting held in Lagos, recently, that the mortgage bank is retooling, and refitting to ensure it can play effectively in the post-consolidation era of the sector.

“We have mortgage banks that can play the national franchise at N5 billion and we those who are limited to the state at N2.5billion capital base. For Intercontinental Homes, the direction is clear for us. With a N4.5 billion shareholders’ fund, the only logical approach is for us to make it up to N5 billion. We are working on all options, which include making up the funds from profit from our operations from this year or combination with another mortgage bank. The board and shareholders can also agree on rights issue. In terms of operation, we will focus more on mortgage banking.

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House prices in UK dips in April

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OUSE prices in the UK are in slow decline, new figures from the Nationwide building society suggest.

Its latest monthly survey says prices dropped by 0.2 percent in April, leaving them 0.9 percent down on a year ago.

The Nationwide said prices had fallen four times in the past five months to leave the average price at £164,134.

Figures from the Bank of England suggest that the brief rise in mortgage lending at the start of the year had now come to an end. The Land Registry for England and Wales also said house prices had dropped slightly in March. It said they fell by 0.6 percent during the month, which also left them 0.6 percent down from a year ago.

Robert Gardner, the Nationwide’s chief economist, warned that the next few months were unlikely to see a revival of either sales or prices.

“Much of the recent softness in measures of housing market activity and house prices is likely to relate to the expiry of the stamp duty holiday in late March.

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US mortgage giant posts $1.2bn loss in Q1 ORTGAGE giant Freddie Mac posted a loss of $1.2 billion for its operations in the first quarter of 2012, compared with a net loss of $929 million in the same period in 2011.

The mortgage bank is requesting $19 million in additional federal aid after posting the loss, which is less than the $146 million that Freddie received from the government for the fourth quarter of 2011. The company received $7.6 billion for all of 2011 and $13 billion for all of 2010.

It would be recalled that the US government rescued Freddie Mac and Fannie Mae in September 2008 after massive losses on risky mortgages threatened to bankrupt them. US taxpayers have spent roughly $170 billion to rescue the two mortgage giants, the costliest bailout of the 2008 financial crisis. It could cost about $200 billion more to support the companies through 2014 after subtracting dividend payments, according to the US government.

The first-quarter net loss takes into account $1.8 billion in dividend payments that Freddie made to the government, its primary shareholder. Fannie and Freddie are required to pay 10 percent dividends on the government money they receive.

In some past quarters, Freddie hasn’t asked for any government aid. But the $19 million it is requesting for the first quarter this year is the smallest request it has ever made. Freddie has paid more to the government in dividends than it has taken in aid in the last five quarters, the company said.

About a third of the company’s holdings are home loans issued between 2005 and 2008, which accounted for 88 percent of its losses in the first quarter. Freddie said those loans are becoming a smaller proportion of its portfolio, and that over time that should have a positive impact on its finances.

Freddie and Fannie own or guarantee about half of all US mortgages, or nearly 31 million home loans, which are worth more than $5 trillion.

Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year.

Freddie CEO Charles E. Haldeman Jr. noted that an

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effort is underway to streamline the company. “We have also stayed focused on maintaining the flow of funds to the market and preventing foreclosures. In the first quarter, we helped over 577,000 families own or rent their home, adding more quality loans to our portfolio,” he said in a statement.

The housing market has slowly begun to improve, but

has a long way to go before it’s healthy.

Many homeowners are still defaulting on their mortgages.

Unemployment remains high at 8.2 percent.

Fannie and Freddie buy home loans from banks and other lenders, package them into bonds with a guarantee against default, and then sell them to investors around the world. When property values

drop, more homeowners default, either because they are unable to afford the payments or because they owe more than the property is worth. Because of the guarantees, Fannie and Freddie must cover the losses.

Pressure continues on the government to eliminate Fannie and Freddie and reduce taxpayers’ exposure to risk.

•Mansion under construction

Nigeria’s housing demand rises by 20% annually – World Bank

By YINKA KOLAWOLE OUSING demand in major Nigerian cities such as Lagos, Kano, Abuja and Port Harcourt is growing at the rate of 20 percent annually.

Dr. Michael Wong, Senior Private Sector Development Specialist at the World Bank, made this disclosure at the recently concluded 6th Lagos Economic Summit tagged, “Ehingbeti 2012”.

In his presentation on ‘Housing and Urban Renewal: Developing a Model for a Sustainable City’, he traced the cause of housing crisis in cities to urbanisation, which is currently growing across Africa at the rate of 40 percent, and 48 percent in Nigeria – the highest in sub-Saharan Africa.

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Wong however noted that if properly harnessed, urbanisation can serve as positive catalyst for development, which can be a gateway to national development.

He said all over the world, cities have emerged as the key nodes in globalised economy, serving as the gateways to national economies. “Analytically, there is a strong causal connection between urbanisation and economic development. No country has grown to middle income without urbanising; none has grown to high income without vibrant cities,” he said.

The World Bank official revealed that 4 million houses are needed annually in Africa, with 720,000 needed in Nigeria, 60 per cent of which are required in Lagos.

He however noted the

challenges inherent in the urban development in the developing nation to include infrastructure, water supply, transportation, waste disposal, water pollution, inadequate schools, hospitals and other related amenities.

Other problems he considered inimical to housing supply include nonavailability of developerfinance, planning and building regulation, cost of infrastructure, and access to land, among others.

He advised that Lagos State government should stimulate investment in infrastructure by providing funding solution for lenders by linking them with the capital markets, adding that government should also leverage on private capital through public private partnership (PPP) initiatives.

Vanguard, MONDAY, MAY 7, 2012 — 37

Aviation Aviation sector still an infant industry in Nigeria, says Aligbe ANAGING Director, Belujane Konzult, Mr. Chris Aligbe has affirmed that the aviation sector in Nigeria is still an infant industry that is suffering from what he called 'congelitant infantilism.'

Speaking to newsmen during an interactive session at the Murtala Muhammed Airport Lagos, Aligbe,who is a former Director, Corporate Affairs of the defunct Nigeria Airways, stressed that even though the aviation industry has being in existence since 1958, it still looks like an infant industry.

“When you look at the airline sub-sector, it is in a terrible situation, it hasn’t stabilized.

So you can say that the aviation sector even though it has been created for a long time since 1958, down till now, it still looks like it is an infant industry, it is suffering from what is called congelitant infantilism” “It has never grown, every time, it is behaving like an infant, like a toddler that has to be groomed with all its airlines struggling to survive” he

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affirmed.

Mr. Aligbe however pointed out that it was only one airline that Nigerians could boost of as a country which was Arik Air stressing that Arik Air was the only flag carrier that was recognized and rated amongst other airlines in the West African Sub-region and in Europe.

“If you look at the airline subsector, what is happening is that the only airline today that Nigerians can say gives us some recognition outside this country is Arik Air because of the equipment that they have.

So we can simply say that there is a Nigerian flag carrier that represents us out there” “Take away Arik Air, which other airline can we beat our chest and say this is our airline, in Africa, in the continent, it is only Arik Air that is rated amongst other airlines, amongst ten airlines, Arik Air is the only one” Aligbe stressed.

L-R: Trade Account Manager (Ikoyi/VI/Lekki/VGC), British Airways Nigeria, Mrs. Erdoo Oshoma; Trade Sales Manager, British Airways Nigeria, Mr. Ademola Sanya; staff of Peacock Travels & Tours and winner of British Airways Club World ticket, Ms Emem Godswill, and Trade Account Manager (Lagos Island), BA Nigeria, Ms Ehi Edache during a trade workshop orgainsed by the airline for travel agents in the country at Sheraton Hotel & Towers, Ikeja today Thursday April 3.

Stakeholders flay FG on aviation roadmap Stories By Daniel Eteghe, with agency reports TAKEHOLDERS in the aviation industry have collectively flayed the aviation roadmap introduced by the Federal Government through the Ministry of Aviation.

Many of the stakeholders who claimed that they were not involved in putting the document together pointed out that the document was invalid as the calibre of professionals that drew it could not be vouched for just as the roadmap only portend to handle some aspect of the industry without following the master plan of the airport.

They noted that the roadmap which shows the remodeling work of fingers D and E of the Murtala Muhammed International Airport (MMIA) Lagos lacks credibility as it ought to have followed the master plan which was required that work should begin from fingers A, B, C before going into D and E. Speaking at the 18th LAAC seminar in Lagos with the theme: “Evolving a Roadmap for Transformation of the Air Transport Sector in Nigeria” Managing Director of Sabre Travel Network, West Africa, a United States-based airline Global Distribution System, Mr. Gbenga Olowo affirmed that the roadmap could not specifically stipulate what the aviation industry needs at the moment adding that the remodeling work was not the right thing to do as passengers were been inconvenienced unnecessarily.

“The remodeling that we are doing, I pity those doing that job because there is no alternative, what we should have done is to use canopy for our offices while the renovation work is going on. We did that in Liberia during the war, Bellview airline was flying there in the open fields. So we can use canopy for the airport and in six months time that airport will be ready”. “I want to ask the government, how come we are remodeling fingers D and E, what is happening to the master plan. Why didn’t they start with the master plan A, B, C, get that completed in two years before going into D and E? Are we renovating the car parks both at International and GAT ground zero, does it include that in the remodeling work”

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Olowo asked.

According to him “The so called remodeling is not the answer at all, all our airports are below standards, the passengers are been inconvenienced and you ask them to move away all because you are doing ties. I pass through Air France in Paris every time, whenever there is a renovation work, that part of the airport is cut off, you just see blanket, you don’t know what is going on their and in another three months when you pass that part of the airport, you will marvel with the kind of work that they would have done”.

He however noted that if aviation will drive the economy of the country then the government has to think in the right direction, stressing that the roadmap should be made available to stakeholders in the industry for them to analyze it and put in their own input in order to key into the concept and the vision of the honourable minister of aviation, Princes Stella Oduah.

“We need those documents from the office of the Minister and the DG, those consultants, let them give us the documents so that we can analyze and understand the concept and the vision of the roadmap. I want to see the pattern of the roadmap and see how many passengers are flying now, how many aircraft we have, how many employees these airlines have. This is the kind of data that we should sit down and say what aviation in Nigeria is going to be in the year 2050”

38 — Vanguard, MONDAY, MAY 7, 2012

Agric

FG gives N276bn loans to 5m farmers in 2012

By JIMOH BABATUNDE, with agency reports HE Federal Govern ment is committing N276 billion, secured as loans from commercial banks, to reach five million farmers this year, the Minister of Agriculture and Rural Development, Dr Akinwunmi Adesina, has said. Adesina said this at Orin-Ekiti in IdoOsi Local Government Area of Ekiti State at the launch of “Youth in Commercial Agribusiness” as well as the inauguration of the 2012 Agriculture Session in Ekiti State.

“We have completed the database of farmers, which we will continue to upgrade, so that we can have steady information on farmers in order to put a final stop to the huge corruption in the system of distributing fertilisers.

“In the past, only 11 percent of the farmers get fer-

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tiliser procured by the Federal Government and sold to farmers through the various state governments.

“That means that some 89 per cent of farmers never get the fertilisers.

What we have found out is that the system was so corrupt, inefficient and displaces the private sector.”

Adesina said that President Goodluck Jonathan had directed the ministry to commence meaningful partnership programmes with all states in order to boost employment of youths through agriculture. The minister said the Federal Government had stopped the sale of fertilisers to farmers through intermediaries to stop corruption in the exercise.

According to him, the government has adopted

another means through which the commodity would reach the real farmers.

“What we have designed as a second option is that henceforth, we will be using direct mobile phones, called EWallet to target real farmers and reach them with their fertiliser without involving the third party.”

Adesina explained that the new system would be rolled out across the country, beginning from this planting season.

While commending Ekiti State Governor, Dr. Kayode Fayemi for the Youths in Agriculture initiative from which 2000 youths will benefit from its first phase, the minister said there is no sector that can create jobs faster than the agricultural sector. Adesina decried the attitude of treating agriculture like a development programme: “To unlock the potential of

agriculture to create jobs, we must engage the energy, dynamism and entrepreneurship of the youth. We are no longer treating agriculture as a development program.

We are treating agriculture as a business. Our goal is to make Nigeria an agriculturally industrialisedeconomy.

“Subsistence agriculture is not able to feed a

nation. What is needed is commercial agriculture, which can be done by small, medium and large scale farmers. We must modernise, to be able to attract the youth into agriculture. We must expand the level of use of tractors in the country. The country does not have more than 20,000 whereas about 300, 000 tractors are needed.”

Earlier, Gov. Kayode

Fayemi said the thrust of the youth in Agriculture programme was to commercialise farming and promote mechanisation for generation of employment and improved revenue.

He said that 58,000 peasant farmers had being registered in the state while the youth farming programme would provide additional 20,000 jobs.

Bjorn Stauch, Head of Private Banking, Standard Chartered Bank; Richard Howarth, Executive Director, Private Banking, Standard Chartered Bank; Catherine Fisher, Senior Director, Private Banking, SCB and Atedo Peterside, during an Art exhibition sponsored by Standard Chartered bank in Lagos. Photo

by Lamidi Bamidele.

Kano to allocate free farmland to women

By ABDULSALAM MUHAMMAD, Kano ANO state Govern ment is to allocate free farmland to interested Women farmers at Kadawa irrigation site for all year round farming.

The Commissioner of Agriculture, Hajiya Baraka Sani told a gathering of rural women in Nasarawa local Government that the measure was adopted to boost food security in the state.

Hajiya Baraka Sani revealed that the state Government has also secured strategic partnership with some Commercial Banks that will grant facilities to women farmers to enable them contribute meaningfully to the economy.

Baraka Sani noted that no meaningful development could be achieved on areas of sustainable economy without full participation of women, stressing that Kwankwaso administration real-

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ized this too well and is striving to fix the vacuum.

Baraka Sani said that the women empowerment programme that accommodate over 44 000 women across the state was past of holistic approach at addressing poverty among rural

women, adding that the ultimate goal is to give women a level playing field for their contribution.

She stated that women group will be given necessary support to realize their set goal adding that the second phase of the women empowerment programme will soon kick off to cover the second set of beneficiaries’.

Sokoto farmers to smile home with 296,000 bags of fertilisers

By ABDALLAH EL-KUREBE OKOTO state gov ernment is set to procure 296,000 bags of assorted fertilisers from the Federal Government for the 2012 farming season, Commissioner for Agriculture, Dr. Jabbi Kilgori has disclosed.

Kilgori, who spoke in Sokoto weekend, said that the fertilisers will be bought under the newly introduced electronical-

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ly enabled system, called “e-wallet voucher system using GSM.” According to him, the consignments would comprise of 148,000 bags each of NPK and Urea brands of the commodity.

“We will buy each bag of the commodity at N 5,500 while both the Federal and sokoto state governments will provide a 25 percent subsidy each on each bag of the commodity,” Kilgori explained.

Vanguard, MONDAY, MAY 7 2012 — 39

Another banking crisis coming up – 2 “

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hen Sanusi took over, he proceeded to dismantle the Soludo legacy. And although, there is no indication he intends to erect a monument, he will all the same. The crisis might occur before he goes to Kano for the coronation. It is brewing with a fury known only to beer Brewmasters.

Most banking crises start from one incident, a breach of the rules and regulations, in one bank which benefits a few

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*CBN Head Office at Abuja

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HOSE who go in for banking must accept the consequences, because if there were no consequences, everybody would go in for banking”.

Charles Dickens, 1812-1870 If anyone had asked Sanusi Lamido Sanusi three years ago his choice between becoming the Emir of Kano and the Governor of Central Bank; he would have chosen the former.

But like Prince Charles of Britain, whose mother, Queen Elizabeth II, has reigned since 1952, and is still going strong, Lamido too must wait indefinitely to pursue his ultimate ambition – which does not include being remembered as a great banker. Banking was just something to do while waiting.

That was why, unlike his predecessor, he did not lobby much for the job; instead the job came looking for him. That might have explained his distractions and his aloofness bordering on arrogance.

Soludo plotted his own ascendancy to the Central Bank of Nigeria. First, as Chief Economic Adviser to the President, he was the lead author of the National Economic Empowerment and Development Strategies, NEEDS I; which was full of tantalising projections about where Nigeria would be by 2010. But, tucked in that document was the key point – Nigeria would not get there with all the weak banks then operating. And the only person to do the job must be an outsider.

For too long insiders, meaning former Managing Directors of commercial banks have been promoted to the post. That idea must have been drummed into Obasanjo’s ears – who eventually caved in and when Chief Joseph Sanusi, ex-First Bank Managing Director left, Soludo became the logical choice. He wanted to leave a legacy; unfortunately, what he left was not quite what he had in mind.

ment to report deposits of one million or more into an individual account. Yet virtually all the banks conspired with old and new customers to launder stolen pension funds belonging to millions of individuals. Even with the rather lenient penalties attached to these offences, the banks face billions of naira in penalties directly; and billions more in claims from affected groups indirectly. In these cases we are not talking about a few individuals but a systemic and pervasive violation of the laws. The bankers who have appeared at public hearings have sounded like people interested in passing the buck and running for the border than people certain of their innocence. Heads, again will roll.

Most banking crises start from one incident, a breach of the rules and regulations, in one bank which benefits a few people; gets copied by other banks or is repeated by the same bank until it becomes routine.

people; gets copied by other banks or is repeated by the same bank until it becomes routine. The current case involving the former Managing Director of the defunct Intercontinental Bank, Plc and the former governor of Kwara State is one of the two examples which will be examined today to round up this warning. As stated last week, if the allegations are proved beyond reasonable doubt, the the Governor of the Central Bank must bear a significant portion of the blame for appointing someone whose track record had been revealed as questionable in the past.

At the moment the focus is on one allegation pertaining to granting waivers to Senator Saraki’s firms under questionable circumstances and releasing the securities for the loan prematurely; thereby leaving

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the bank holding to thin air for its exposure – N9 to 11 billion worth of it. One can only pray it is not true; for the sake of Mr Alabi; more for the sake of Senator Saraki and for the sake of the Nigerian banking sector.

That incident raises several questions to which this writer already has some answers. The first is, was that the only loan handled in this manner? If not, how many more loans are involved? For those who might not grasp the implications of those questions, let me quickly explain. Intercontinental Bank had since merged with Access Bank and unfortunately the existing bank might have, inadvertently, inherited more toxic loans from Intercontinental. Two closely linked aphorisms serve as our guide here. The first says, “Appetite grows with eating”. The second was provided by the only elect-

ed President Nigeria never had, late Chief M.K.O. Abiola.

He said, “No man stands all day in the rain for nothing”.

These questions are pertinent, not just in the Intercontinental case but with all banks existing at the moment.

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he next question is for the Central Bank to answer.

Are there no guidelines which must be followed before a bank can grant this magnitude of a waiver? If, yes, were they followed and did CBN examiners to the bank check these? If not, how could the examiners have missed this huge write off?

The more you look, the more it can be seen that the CBN was somehow derelict in its duties and its responsibilities to the shareholders of the bank who had no say in the appointment of the Managing Directors.

And, if it was careless in one case how can the stakeholders in the banking sector have confidence that this is an isolated case. Information reaching me suggests it is not.

When we turn to the pension scandal, one is appalled and the heart melts. Here the rules and regulations guiding deposits by individuals, as well as opening of accounts are so clear that no banker can claim ignorance of them. There is the “Know Your Customer” principle and the mandatory require-

anusi, this time, should not be allowed to singlehandedly appoint new Chief Executive Officers to replace those who might be implicated.

The obvious question; to which there is also an obvious answer is: why did so many bankers risk their careers and the fortunes of their banks by engaging in widespread money laundering? The answer is “they were desperate”. Both individually and as banks people had become desperate.

Retrenchment occurs every day sending hundreds of bankers into the job market and an uncertain future. Most, on account of loans taken, would depart with very little. Under the circumstances, it was easy to bend the rules, collaborate with pension fund thieves and hope to put away something for the future.

Diminished job security is one reason for the collective violation of banking rules and regulations. The negative variances between projected revenue and profits also act as catalysts to law breaking. When deposit targets are not being met, bank managers become vulnerable to dubious deals.

Most succumb hoping that the violations can be concealed through a combination of other deals with CBN staff, creative accounting and complaisant auditors. Some of the tell-tale signs are there when depositors spend long hours at branches trying to withdraw money. Also, when your bank “fails” to clear local cheques deposited within three working days, or out of state cheques for almost a week, into your account – especially on weekends — you should suspect deliberate delay by the bank.

Or when salaries paid into your account “have not been processed”. Invariably, it is not just a few customers; it is every customer who is subjected to “go slow” treatment.

40 — Vanguard, MONDAY, MAY 7, 2012

Vanguard, MONDAY, MAY 7, 2012 — 41

42 — Vanguard, MONDAY, MAY 7, 2012

Cover Story

Eurobonds expose Nigerian banks to foreign exchange risk Continues from page 18 FGN Eurobond which serves as a

benchmark for Nigerian corporates is trading at circa 5.00 per cent.”

Mr. Wale Abe, Executive Secretary/Chief Executive Officer, Financial Markets Dealers Association, FMDA, said despite the risks involved, international fund raising does not signpost any bad news, neither does it tell anything about the state of those banks.

According to him, a bank is to raise liabilities through a combination of instruments —short-term and long-term. “Deposits are usually short or long-term liabilities by way of long-term borrowings using instruments like public offers and debt instruments like bonds. Indeed, if the banks succeed, it is to tell you that the investors have confidence not just in Nigerian banks but the economy in general, because the banks must pass certain quality ratings to make them attractive enough. International investments are based on credible and transparent standards and ratings.

For any bank to think of it therefore, it must have what it takes to qualify it to approach the international debt market,” he said. reacting, Mr. Tola A lso Odukoya, Vice-President, Investment Research at Dunn Loren Merrifield, said: “I do not believe that raising finance from international markets via eurobonds suggests that the banks have problems.

In my opinion, the opposite is the case. This is because raising capital from international investors requires more disclosures and rigorous analysis of the issuer, including a credit rating by any of the global rating agencies.

“Therefore, I doubt if any weak institution will be able to successfully raise funding from the international financial markets, rather it is the relatively strong ones that can execute this successfully. Beyond this, you will recall that the two banks that have successfully raised funds via Eurobonds- First Bank and GTB - are two of the top five banks in Nigeria.

However, the trend could also be an indication of the effects of the prevailing high domestic interest rate, which is a strong disincentive to potential issuers of long-term debt,” he said.

Sourcing funds from the international market, according to Mr. Oluseye Adetunmbi, Chief Responsibility Officer, Value Investing Nigeria Limited, should not be seen as a symptom of unhealthiness in Nigerian banks. “Soludo’s intervention has since addressed the issue of health of Nigerian banks. It is either an actual seeking of funds to meet an increasing domestic business needs of the banks or for the purpose of broadening the scope of the banks’ operations on the international fron-

tiers.

“Remember that the kind of bond window being explored is a structured international bank.

To venture exploring raising capital in the first instance is a sign of strength. If these Nigerian banks are not healthy, they won’t be looking at international bond market that will do due diligence on the issuer before exposing their market to such investment."

Commenting further, Adonri said from available data, the banking industry is in good health, adding that their risk assets are now generally centered on high-yielding gilt edged government securities.

“There are also emerging opportunities in the economy that the banks can finance with longer tenor funds. The potentials of infrastructure finance are currently begging to be exploited profitably. Due to collapse of equities primary market and the high cost of issuing long- term domestic debt, it is cheaper for Nigerian banks to access longterm funds from the international capital market,” he stated.

For Mr. Johnson Chukwu, Managing Director/CEO, Cowry Assets Management Limited, the major cause of the new quest by banks to float Eurobonds is lack of depth of the Nigeria capital market. He explained that the 'haircut' the local banks suffered in the assets they sold to Asset Management Corporation of Nigeria, AMCON, may have affected their liquidity position and their ability to create risk assets, saying that by raising bonds from the international market, the banks would be reflating their balance sheet and repositioning for new business opportunities in the power and infrastructure sectors.

Chukwu maintained that since the major institutional investors in the capital market local banks and Pension Fund Administrators (PFAs)- are averse to banks’ bonds, interested issuers prefer to use the foreign market to meet funding needs. “Presently, the major institutional investors in the Nigerian fixed income market are the banks and the Pension Fund Administrators. While banks may not be keen on investing in other banks' bonds, the PFAs currently prefer FGN bonds, which are giving them yields of more than 15 per cent. This leaves the banks that intend to issue bonds to look for alternative markets to raise funds,” he stressed.

Vanguard, MONDAY, MAY 7, 2012 — 43

vicahiyoung@yahoo.com 08033348923

Appointment & Promotion

CNN appoints Duthiers Nigeria correspondent ABLE News Network, C CNN, has named Vladimir Duthiers as its international correspondent in Nigeria.

Duthiers will join CNN’s contingent of Africa-based correspondents across the continent, as the network reaffirms its commitment to Nigeria.

CNN currently has key bureau in Lagos, Nairobi and Johannesburg; all headed by bureau Chief, Kim Norgaard - as well as three weekly programmes on CNN International focused on the continent: Marketplace Africa, Inside Africa and African Voices.

Parisa Khosravi, Senior Vice President for CNN Worldwide in charge of International Newsgathering, said: “Vladimir’s passion for journalism, impressive business background and his knack as a natural storyteller make him a fantastic choice to cover such a vibrant country and region.”

Duthiers joined CNN in 2009 as part of Christiane Amanpour’s original news programme, Amanpour. He most recently served as an associate producer for Anderson Cooper 360°.

When an earthquake shook Haiti in January 2010, Duthiers was among the first journalists to arrive in Port-au-Prince. He spent several weeks on the ground field producing for CNN – including the AC360° team – which went on to win two Emmy awards for its coverage of the quake.

Earlier this year, Duthiers was on the scene as the Occupy Nigeria movement exploded onto the streets of Lagos.

His reporting put the focus on the economic struggles of or-

dinary Nigerians and the tensions surrounding recent attacks by the Islamist terror group, Boko Haram.

Duthiers, who is fluent in French and Haitian Creole, has taken an unusual route to a career in journalism.

Prior to joining CNN, he spent nearly 20 years in the financial services industry, travelling extensively around the world for clientele in 21 countries.

Duthiers holds a B.A. in Political Science from the University of Rhode Island and an M.S. from Columbia University’s Graduate School of Journalism.

A group picture of the 20 Nigerian youths trained at SAMSUNG HEAVY INDUSTRIES YARD, Geoje, South Korea shortly after arriving at Murtala Muhammed international Airport, Lagos.

FG confirms 9,000 PHCN causal workers HE Federal Government has confirmed 9,000 out of 11,000 causal workers in Power Holding Company of Nigeria, PHCN, across the country.

Federal Capital Territory, FCT Abuja, Chapter Chairman of National Union of Electricity Employees, NUEE, Mr. Wisdom Nwachukwu, disclosed this in Abuja.

He explained that the workers concerned had received their letters of appointment and gave an assurance that the remaining workers would be confirmed soon. Nwachukwu said that government had also agreed to pay the 50 per cent increment in leave grants to PHCN staff.

He said that the arrears of 2012 of such entitlement had been finalised and sent to the banks for payment.

He said that two months arrears of the 50 per cent in respect of November 2011 and March 2012 salary owed the

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workers “have been paid to the bank”.

He commended the Minister of Power, Professor Barth Nnaji, for making the payment a reality.

Nwachukwu called on the government to follow the Hassan Sumonu-led committee

recommendations on the settlement of the benefits of the workers before winding down PHCN. The Sumonu-led committee had suggested that all arrears of entitlements of the workers should be paid before the winding down of the company.

Law firm appoints new partner L AW firm of Olisa Agba koba and Associates (OA&A) has appointed Mr. Chijioke Emeka a partner, litigation in the law firm.

A statement from the law firm said “ In order to further its corporate objectives of delivering quality legal services to a wide spectrum of clients on the core values of excellence, commitment, integrity, service and dedication, Olisa Agbakoba & Associates

has decided to add a new Partner to its management team.”

Chijioke Emeka, until his recent appointment, was a senior associate and head, litigation at OA&A. His appointment took effect from February 9, 2012.

Mr. Emeka, a seasoned litigator, has practiced law in different courts around Nigeria.

He read law at Nnamdi Azikiwe University, Awka and the Nigerian Law School Abuja, before his call to the Nigerian Bar and has

encouraged the investors, industrialists, academics and students with the amassing success story of the group.

His achievements have been replicated in various Entrepreneurship Development Centres and Business Schools in Nigeria, US, Tanzania, Kenya, among other countries.

Presenting the award to Austin Okere, Senator Gbenga Obadara – Chairman – Senate committee on Privatization, commended the outstanding job done by the awardee, in his words “ We are proud of you and you have indeed portrayed Ni-

geria’s image positively globally. Austin Okere is the Managing Director/CEO of Computer Warehouse Group Limited, one of the fastest growing ICT companies in Africa.

He graduated from the University of Lagos in 1986 with B.Sc. (second upper division) in Computer Sciences, and also an Executive MBA from the International Graduate School of Management (IESE), Spain, after a preparatory period at the Lagos Business School, 1998. He founded Computer Warehouse Group Limited in September, 1992.

Okere gets TAP award ECHOLOGY Africa, or T ganizers of Titans of Tech Award, has honoured Chief Executive Officer of Computer Warehouse Group, CWG, Mr. Austin Kwesi Okere, with the award of ‘Technology Africa Personality of the Year 2012".

The annual award recognizes those believe to be making real difference by their contributions either directly or indirectly in increasing African contents in ICT products and services in the emerging market.

Okere is said to have contributed immensely to the growth of ICT in the coun-

try, especially in Information and Communications Technology (ICT), Hardware, Software, Internet, IT Education, IT Security and Telecommunications, and was recognized in that capacity

by Technology Africa.

In 2008, the Columbia Business School carried out an assessment on CWG where Okere was honored and invited to teach at the Columbia Business School in 2010. Recently, there was also an invitation from The Massachusetts Institute of Technology (Legatum Center for Development and Entrepreneurship), where he

In his speech, the National President of NUEE, Mr Mansur Musa, condemned the high level of corruption in the country. Musa commended the National Assembly for its efforts e to expose corruption, especially in the oil and gas sector

12 years’ post-call experience.

Young and dynamic, his core practice areas include election petitions, commercial and insolvency Law, maritime law and constitutional Law. He has a passion for human rights, constitutionalism, law reform and development through Public Interest Litigation. Emeka is also regular guest on television programmes where he discusses law and makes contribution to wide range of national issues.

He has written several articles in newspapers and is also published in academic journals. He is a member of the Nigerian Bar Association and the International Bar Association.

•Chijioke

44 — Vanguard, MONDAY, MAY 7, 2012

ICT

How MTN telecom mast tears two government agencies apart •Highlights over-regulation scourge •Attracts public outcry •NASS promises to wade in

By PRINCE OSUAGWU ARING any quick intervention by the federal government, Nigeria may soon lose the fastest growing telecom economy toga, under the heat being generated by the over regulation of the telecommunications industry.

Half way into the first decade of telecom revolution in Nigeria, the country became Africa’s fastest growing telecom market, overtaking South Africa which dominated

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Africa’s share in the global market.

But this record is seriously under threat by the in-fighting between government agencies over the right to regulate industry operators. The danger of this development is the hydra headed monsters— multi regulation and multi taxation, which it fosters in the sector.

Pennultimate week, a light drama unfolded in Abuja between the Nigerian Communications Commission, NCC and its counterpart in the en-

vironmental ministry, the National Environmental Standards and Regulatory Enforcement Agency, NESREA, where the duo canceled each other over a base station belonging to MTN. The base station was shut by NESREA a couple of weeks back, with the agency announcing that the site did not meet setback requirements for a base station.

The following week, the official regulator of the sector visited the site in question and opened it, stating that it was wrong of NESREA to have shut

it without any recourse to NCC. The officials of NCC said the base station met its requirements stipulated for base stations.

NESREA officials were to later return to the site to reseal it a couple of days later, claiming that NCC opened the facility without lawful authority.

The Director, Inspection and Enforcement of NESREA, Mrs. Ronke Soyombo, who led NESREA team of Inspection and Enforcement team to reseal the premises, insisted that the base station

•Bone of contention: Telecom mast would remain shut for allegedly violating environmental laws and falling short of the 10 metres set back from a residential area prescribed by the agency.

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he official stated that MTN would pay a fine of N5 million for the alleged default, and a daily fine of N50, 000 for as long as the operator failed to comply.

She told the press that in addition, the agency would press charges against MTN “for acting outside the confines of the law and also for illegally removing a seal which was put by NESREA. That is a criminal offence against the Federal Republic of Nigeria.”

As at the time of writing this report, NCC was yet to respond. But industry professionals who spoke to Vanguard however expressed dismay at the development, saying it may stunt the growth of the industry.

How many regulators for telecom?

For instance, Mr Maxwell Onoja, a telecom expert said that “there can only be one regulator in an industry. Where you have multiple bodies controlling an industry, such industry is doomed.

“It is the duty of the industry regulator to set standards, which is what the NCC has done by prescribing certain requirements that operators must follow before setting up base stations. If NESREA has an issue with that, the proper thing to do is to

reach out to NCC and resolve the differences.

You cannot victimise an operator for complying with the standards set by the body statutorily empowered to regulate that industry. That is simply not fair and doesn’t make sense either,” he added.

Subscribers lament Just like Onoja advocated government's intervention in order to forestall the untold hardship the situation could create for subscribers who get their telecom feed from the site, many subscribers in Abuja are already complaining. An Abujabased subscriber who identified herself as Jane Asuquo, cried that “right now, making calls in certain areas in Abuja is very difficult, Apparently the base stations are not enough and we should be looking at how to increase the number of base stations, instead of shutting down the existing ones. I think the Federal Government needs to step in and spell out the policy on who can set the standards to be followed by the operators,” she submitted.

Multiple regulation, taxation Meanwhile the Chairman of Association of Licensed Telecom Operators in Nigeria, ALTON, Engr Gbenga Adebayo has consistently condemned the tendency for government agencies to prey on telecom operators. According to him, “what happens when you Continues on page 45

Vanguard, MONDAY, MAY 7, 2012 — 45

ICT Continues from page 44 want to build a site is that you must go to about ten agencies of government to get approval. This is down to the issue of multiple taxation by local, state and federal governments” he said.

For him, this is a scourge and it is slowing down the pace of growth in the sector and making it difficult for the sector to surmount the quality of service challenge. He said that until a law is passed against shutting down of base stations, there will continue to be poor quality of service and other challenges.

NASS to wade in owever, Deputy Sen ate President Ike Ek weremmadu, last week, promised that the National Assembly would wade into the matter. He also bemoaned what he described as inter-agency regulatory overlap/multiple regulation and said the menace has left Nigerians short-changed even as it brews confusion and bad blood among the regulatory agencies. Ekweremmadu spoke in Lagos at the Beacons of ICT award organised by Communications Week newspaper. He promised that the National Assembly would wade into the matter before it undermines the success recorded so far in the sector.

According to him, “Indeed such issues as the one happening between NCC and NESREA should not arise and should be checked. You can be rest assured that the National Assembly is taking note of this and other challenges and will continue to provide the necessary legislative framework to strengthen the Nigerian ICT industry”.

History of NCC, NESREA fight over telecom mast But the struggle between NCC and NESREA over who would regulate the operators is not new. Roughly two years ago, NCC and NESREA clashed over the issue of who ought to police and regulate erection of telecommunications masts in the telecommunications sector.

The clash was an offshoot of the decommissioning by NESREA of a telecom mast belonging to Globacom for allegedly violating environmental regulations. The mast, located within OAU Quarters, Maitama, Abuja boosted the operator’s signal strength around Maitama and its environs and was reportedly erected following complaints of poor quality of service in Abuja and particularly in that area.

NESREA however stated that the erection of the mast was in contravention of the procedure laid down for such a structure.

It therefore shut down the base station without any recourse to

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•Not a smiling matter: Dr Eugene Juwah, NCC EVC

•Minister of Environment, Hadiza Ibrahim Mailafia

How MTN telecom mast tears two government agencies apart

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he position of NESREA, at the meeting through its DG, Dr. Ngeri Benebo, was that the agency had a mandate to ensure that all necessary Environmental Impact Assessment was carried out before any masts were erected in any part of the country.

“We are not against any telecommunications company.

Our mandate is to ensure that every base station has its En-

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the NCC, the official regulator of the sector.

The acting Executive Vice Chairman of the commission at the time, Dr. Bashir Gwandu, did not take the matter lightly and publicly criticised NESREA ,warning that multiple regulation of the telecom sector would compound the problems of the sector.

The then Minister of Environment, Mr. John Odey was to later wade in with a view to finding a common ground between the two government agencies. A meeting was called to deliberate on the issue of telecom masts and their impact on the environment. At the meeting held inside the conference room of the Ministry of Environment, Abuja, Gwandu argued that Nigeria could not have acceptable quality of service in the telecommunications sector if impediments were placed on the efforts of operators to roll out service. He stressed particularly that the gains of the past years could be frittered away if multiple regulation was allowed to take root as it would scare investors away from the sector.

H o w e v e r , NESREA is not the only agency of government which lays claim to the right to ‘regulate’ an aspect of Nigeria’s blossoming telecommunications.

There are a dozen others, including local and state governments, seeking to lord it over operators in the telecom sector.

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vironmental Impact Assessment.” she told the meeting.

While some amicable resolution was achieved at the meeting, the underlying issues subsisted and have since then, kept surfacing from time to time. Indeed, only a few weeks after that peace meeting, two base stations of MTN in Abuja were shut down by NESREA, without any warrant, according to the operator. The subscribers covered by the affected base station and its environs were plunged into severe service difficulties.

Zain and Visafone were soon the next targets, as their base stations in various parts of the country, were also shut down

by NESREA, prompting the umbrella body of the operators, the Association of Licensed Operators of Nigeria (ALTON) to step in, warning of the dire consequences of the new trend.

Other agencies too want a share

However, NESREA is not the only agency of government which lays claim to the right to ‘regulate’ an aspect of Nigeria’s blossoming telecom . There are a dozen others, including local and state governments, seeking to lord it over operators in the telecom sector. To show they mean business, they proceed to shut down base stations or otherwise disable the services of the operators in various parts of the country, complicating the quality of service challenge.

Only a few days ago, Lagos State government announced the formation of a new body called Urban Furniture Regulatory Unit, which the state is empowering to regulate masts and towers in Lagos. This is after its earlier plans of using Lagos State Infrastructure and Maintenance Regulatory Agency (LASIMRA) to do so were rebuffed by ALTON, using court pronouncements In Osun State, a local authority sometime ago moved in on MTN’s base station in Osogbo, sealing it off for what allegedly non-payment of the state’s Land Use Clearance Fees. The fees were for all the operator’s base stations in the state capital.

In Ebonyi State, MTN’s backbone and hub site was sealed in May 2010 by the Ebonyi State Environmental Protection Agency for what the agency called non-payment of Environmental Impact Assessment; Monitoring, Sanitation, Effluent Discharge and Environmental Support Fees for seven years, that is, from 2003.

More recently, the operator’s four base transceiver stations in Imo State were sealed by officials of the State Ministry of Petroleum and Environmental Audit Report.

In July 2010, five Airtel base transceiver stations (BTS) located in Umuahia, Abia State, were closed by the state’s Task Force for reasons of non-payment of N19 million, allegedly for Tower Premises Registration and Renewal fees.

In April 2011, the Abuja Municipal Management Council (AMMC) slammed MTN with a bill of N257 million for what it called annual charge and thereafter,made spirited efforts to shut down the operator’s base stations.

Airtel on its part was slammed with a bill of N262.4 million by the Imo State Environmental Transformation Commission (ENTRACO). The bill was dubbed Pest/Vector Control Fees and Fumigation Charges for the years 2008-2011.

In Ondo State, the operators also got a raw deal as the state’s Signage and Advertisement Agency slammed them with various bills for what it called ‘network identification signages’ hoisted at their BTS sites in the state.

These have always attracted serious public outcry. If one could aggregate the views of relevant stakeholders on these developments, it paints a suicidal picture on the country’s economic health, if the government trifles with a sector that contributes over seven percent to the country’s Gross Domestic Product (GDP).

46 — Vanguard, MONDAY, MAY 7, 2012

Media & Advertising BRIEFS Cashless Policy: Legend promo rewards winners with ATM card

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VEN as the Central Bank of Nigerian continues in its quest towards consolidating the cashless policy, Nigeria Breweries Legend Extra Stout’s ‘Real Deal’ promo seems to be already promoting the policy through the Legend Extra Stout Real Deal promo.

Launched recently, the promo will see consumers of the brand walking away with several fantastic prizes. A cash prize of N5,000 will be won by 2,100 people. In a renewed move, the cash will however not exchange hands. Lucky cash prize winners will be handed ATM cards, already pre-loaded with N5,000.

According to Mr. Funso Ayeni, Senior Brand Manager Legend, Nigerian Breweries Plc, the brand resolved to explore the cashless route to enable consumers claim their money with ease. He said: “We put the safety of the consumers as well as proprietors of our designated redemption centres into consideration, hence, the decision to use the cards. So the redemption centres do not need to keep cash in stock, except what they use for their businesses.

Guinness celebrates Diageo brands

By ITORO UDOFIA UINNESS Nigeria Plc hosted its Brand Passion event to give media the opportunity to experience some of Diageo’s brands in Nigeria.

Diageo is the parent company of Giuinness world over with collection of beverage alcohol brands across spirits, beer and wine. These brands include Johnnie Walker, Crown Royal, J&B, Windsor etc.

The event was designed as an exciting avenue to provide guests with the different creative ways that the brands can be enjoyed responsibly.

Speaking at the event, Ngozi Ife Anene Corporate Communications Manager Guinness Nigeria said the Brand Passion event is an opportunity to formally inform the media of the relationship between Guinness Nigeria and Diageo, and enable them experience the Diageo Brands in Nigeria, stating that Guinness Nigeria is a Diageo company.

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HE MTN entrepreneurial seminar has come and gone, but it has left an indelible mark on our eroded family system which brings to fore the biblical saying, ‘train a child in the way he should go, and when he is old, he won’t depart from it’. Accordingly, a well trained child is a great asset for national development, thus Nation building starts at home. This was part of the messages from Dr. Farrah Gray.

Over the years, an anatomy of the Nigerian structure reveals an absolute social decadence and gross erosion of our value-system. The country moved swiftly from institutionalizing corruption to the internationalization of the menace to society-corruption. Materialism and love for money now replaced the hitherto deeprooted social values and existentialism. Materialism has eaten deep into the fabric of the society not because Nigerians are the poorest but because our minds are traumatized by the ignoble effects of greed, avarice and easy virtues, while the thrust of power is vested in a person rather than the people. So also immorality rules the roost in the Nigeria system and credibility of conduct both at public and private levels are at its lowest ebb.

Moral Crises; Based on these crooking infiltrations into the fiber of the Nigerian society, the moral crises had also tendered a lack of appreciation of the core value systems that make a society achieve efficiency, progress

From left; Mr. Bimbo Ashiru, Ogun State Commissioner for Commerce and Industry,and Mr. Thabo Mabe Managing Director, Unilever Nigeria Plc chatting during the celebration of OMO’s golden jubilee in Lagos.

Family value, tool for economic transformation — Gray Stories by PRINCEWILL EKWUJURU and accuracy in public service, transparency and justice in governance. All of these started happening mostly as a result of negligence on the part of the family to imbibe in their children core family values which should later make them great assets to national

development.

The social fabric and nucleus of the society is held together by the standards of morality that we maintain and practice. Values are our personal set of beliefs about what is important, unimportant, right, wrong, good and bad.

In other words, values are a kind of map in our minds of how things are or should be.

Just as a map is not the terri-

OOH Audit: Posterlok to provide transparency, integrity- Brandlife MD S the first digital market ing conference takes place in Nigeria, Brandlife Limited has taken a step further by bringing Posterlok, into the Out-of-Home advertising industry that will bring transparency and integrity in the audit of OOH across Nigeria.

Brandlife’s Posterlok is a web based application designed to assist in monitoring (audit) and reporting of OOH advertisements.

According to the providers of the service, Posterlok will provide transparency and integrity in the audit of OOH. At the unveiling of the platform in Lagos, Julius Agenmonmen, Managing Director/ Chief Executive Officer of Brandlife Limited, said, “we witness the birthing of a cutting edge innovation for OOH monitoring. Prior to our com-

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ing into the media monitoring space, OOH monitoring in Nigeria has been a manual, laborious exercise for all the stakeholders.

From the monitoring agencies, to the media agencies and then the clients. Today, Brandlife Ltd has successfully harnessed the best of different technologies to develop Posterlok. Posterlok is a proprietary technology specifically developed for our company.”

With the Posterlok technology, Agenmonmen said “we are able to deliver a quicker turn around in the cycles of audit. This is made possible by our mobile technology.

Today, we are able to carry out a daily, weekly, monthly audit as never been done before in this market.”

“Posterlok guarantees that you will not need to spend

hours or days trying to make sense of big fat reports from your current agencies. With our system, there will be no report to send to you. You can at your convenience, either in the comfort of your office, or while on the go, access the portal and generate compliance reports as you need.

Posterlok has been optimised for mobile devices. You can view your sites on mobile devices on the go. Generating reports is as quick as clicking the mouse. You can be rest assured that you will be through with one cycle’s audit in about 15 minutes,” he said.

Another key feature worth talking about is the depth of competitive analysis possible with this solution. Posterlok has unique tools which allow for easy view of clients sites along with their competitors.

tory, values are only our perception of the principles of nature that govern our lives or the universe, not the principles themselves. These values are usually handed over from generation to generation, given children the structure and boundaries in which to function and thrive.

How family value help mode life; Citing an example of how family values help mode the life of an individual, a case in point is the that of Dr Farrah Gray, who despite growing up in the sidewalk and poor household in Chicago, US; a high profile gangster environment, he defied the odds to become one of America’s biggest assets of all time. How did he manage to pull himself up and turn his situation to the success he is today? Gray explained during the seminar that, he was handed over great family values, rare assets most people don’t have now. His grandmother saw to it that he learnt the lessons and blessings of integrity, honesty, sincerity, hard work, patience, resilience and all of that. “I am so spiritual that even I can’t put anything in my mouth without praying.

These where some of the things, I was taught. One of my publications failed because it was going to compromise my integrity. Because it was popular among the youths, the tobacco and alcoholic companies wanted to advertise on it. But I wouldn’t buy into it because of my belief,” he commented.

Vanguard, MONDAY, MAY 7, 2012 — 47

Media & Advertising

Insecurity negatively affecting OOH advertising business — OAAN President Stories by PRINCEWILL EKWUJURU

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HE president of the Outdoor Advertisers Association of Nigeria (OAAN), Mr. Charles Chijide has bemoaned the present state of insecurity in the country, describing it as a big disincentive to businesses, especially the of Outdoor of Home (OOH) advertising.

Addressing the media on the just ended Annual General Meeting of the association, held in Lagos on May 3&4,2012, the OAAN boss stressed that members of the association were losing heavily as a result of the insecurity in the northern part of the country.

He noted that investors and brand owners were increasingly losing interests in making use of billboards in those vulnerable parts of the country, a development he said had continued to result in huge revenue loss for members.

His words, “Investors are now very scared to use the billboards in these violent prone areas. As a result, quite a substantial number of billboards are going vacant. If this continues, some of our members may be pushed out of business,” he said.

He however noted that the leadership of the association, in the past one year, had been able to bring some calmness into the sector, by employing dialogue in re-

solving crisis between stakeholders in the sector.

‘For instance, we’ve been able to establish a better working relationship between members and various regulators in the sector.

Now, no regulator would just pull down our members’ billboards without first reaching out to us,’

he noted.

Chijide expressed the association’s resolve to take outdoor advertising to the next level by going digital.

‘Through that, we would be able to empower locations, lighten up the environment and, in consequence, fight crime,’ he added.

The outdoor advertising boss also disclosed that a bye-election would he held at the forthcoming AGM to fill some of the vacant posts that were not filled at the last 2011 Annual General Meeting when the association’s elections were held.

Centre; President of the Institute of Planning Nigeria (IPN), Dr. McCarthy Ijiebor and Director General, Centre for Management Development (CMD), Dr. K.K Usman (3rd & 4th from left, front row); Prof.

Peter Egbon, Deputy President IPN; Dan Akhilele, Director of Administration IPN; Ilias Abdulkadir, IPN Registrar with the CMD team during a recent courtesy call to CMD, Magodo, Lagos.

Growth of telephony, strong platform for increased information — First Lady

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IRST Lady, Patience Jonathan has said that the growth of telephony in Nigeria has provided a strong platform for increased information dissemination on health challenges, as Airtel Networks Limited is commended for providing toll free National Call Centre to the National Agency for Control of AIDS (NACA).

Dame Jonathan, accompanied by the wife of the Vice President, Hajiya Amina Sambo and the First Ladies of Rivers and Bayelsa States, among others, observed that the growth of subscriber base of telecoms firms in Nigeria provides a strong platform for using telephony to drive health awareness.

She stated: “I believe that the establishment of this National Call

…commends Airtel Centre will go a long way in strengthening our national response to HIV/AIDS, as is the case in other countries of the world, such as South Africa, the Philipines and India, who have used help lines and Call Centres successfully in the fight against the HIV/AIDS pandemic. “ Mr. Rajan Swaroop, Airtel Chief Executive Officer made the commitment at the formal commissioning of the NACA National Call Contact Centre in Abuja. Airtel is providing the backbone for the NACA National Contact Call Centre. Mr. Femi Oyewole, Regional

Director, North of Airtel, represented Swaroop.

Recalling that the Airtel partnership with NACA began in 2005, the Airtel Chief Executive affirmed, “As far as this partnership is concerned, we are totally committed to ensuring the success of the National Call Contact Centre.

It is our role to ensure effective public enlightenment and education through firm commitment in scaling up existing efforts and concrete partnerships that will help millions of Nigerians access better information and referrals to service provision in healthcare

delivery.

“At Airtel, we will also work with the NACA to send short messages concerning the deadly scourge to our subscribers nationwide.”

Swaroop lamented the sentinel survey 2011 results that show higher prevalence of HIV in some rural areas compared with urban areas. He called for more effort by telecoms firms to enhance the fight against the scourge by enabling provision of information to citizens particularly in rural areas.

“I would like to use this medium to call on other GSM operators to dedicate toll free lines for their subscribers to experience the opportunity provided by NACA”, he stated.

BRIEF Advertisers will get value from Emerald — Sevenseries

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M Holdings, owners of Sevenseries Limited producers of Emerald, a new TV drama Series has counted the value advertisers will benefit from the programme.

Mr. Oladapo Ojo, Group Managing Director of DM Holdings, the owners of SevenSeries Limited, said that the quality of production, the ingenuity of the script, the brilliance of the cast and the expected massive viewership will go a long way in, not only meeting, but also exceeding, the expectations of prospective advertisers.

He said: “What we have set out to do is to deliver the best drama series on any Nigerian television station. For this reason we are not benchmarking the output against anything ever seen in Nigeria. Our desire is to make Emerald a worldclass. That is the vision behind this massive project, which is expected to have a cast of about a 100 artistes.

“Our expectation is that prospective sponsors and advertisers will find Emerald irresistible because we are confident of what we are putting together. From the script to the experienced technical crew and the mix of both experienced and budding artistes, expected to grace the project, we are sure Emerald will be a run-away success that will command huge viewership. I believe advertisers can take advantage of its popularity to reach their target audience.”

The audition for the project recently took place in Port Harcourt, Abuja and Lagos with a huge turn-out of budding artistes. The technical crew, which comprises a combination of both local and foreign experts, had a tough time sieving through the enthusiastic crowd.

Speaking on the project’s postaudition activities, Ojo said the technical crew was in the process of finalizing the choice of successful artistes for various roles, adding that the names these successful stars will be announced very soon.

Emerald is set to give Nigerians a truly world-class TV drama series with international flavour as well as a platform for training and retraining Nigerians in the art of making globally acceptable TV drama series.

48 — Vanguard, MONDAY, MAY 7, 2012

on Wednesday passed through second reading at the House of Representatives.

The bill provides for the appointment of a person, other than the CBN Governor, as the chairman, and the exclusion of the deputy governors and directors as members of the bank’s Board of Directors.

It also seeks to divest the board of the power to consider and approve the annual budget of the bank.

The bill, according to its sponsors, will enhance transparency and entrench the principle of checks and balances in the administration and operations of the CBN.” (Bill to Amend CBN Act Passes Second Reading, Punch 3/5/2012, pg. 24).

The preceding report can only be indicative that members of the Lower House are not particularly enamoured by what they consider to be excessive powers of the apex bank under the CBN Act 2007. The sought amendment coming just five years after the Act is possibly indicative that the preceding legislature may not have done a thorough job.

However, some critics may suggest that the amendment was a way of clipping the ‘flippant’ wings of the Central Bank Governor, who has so far successfully stonewalled their probing inquiries by taking cover behind the existing provisions of the Act; besides, Lamido Sanusi hardly misses an opportunity to decry the excessive consumption pattern of Members of the National Assembly. Whatever maybe the true motive of Members of the House, one thing is clear, appointment of an external Chairman and Board is not a guarantee for good governance.

The list of failed government parastatals with external boards and non-executive directors is endless!

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f course, the amended or ganisational structure would provide some critical checks and balances in a disciplined environment, where appointments are based on merit rather than on ethnic or religious consideration or political patronage. Indeed, the moribund and drainpipe public enterprises that dot our landscape are sufficient testimonies of the effectiveness of non-executive directors and chairmen.

This is not to say that the CBN’s current operating structure and service delivery is of best practice standard. In order to make a fair assessment of its performance, it would be appropriate to identify what the core mandate of the CBN is.

Indeed, a brief published on the internet by the Legal Services Division of the apex bank describes the objects of the bank as contained in Section 2 of the CBN Act 2007 as follows: “The object of price stability has now been distinctly included in the core mandate of the bank.

The putrid mess also in CBN! This is informed by the fact that the core function of every Central Bank is the maintenance of price stability. It should be noted that macroeconomic stability is essential for growth and development in any economy. Macroeconomic stability is itself a function of price stability which is the ability of the Central Bank to moderate inflation, attain stable interest and exchange rates and create a conducive investment climate for long term growth and development. In order to achieve and maintain this objective, however, it is imperative to keep a close watch on government spending as persistently huge budget deficits tend to lead to volatility in prices, which in turn negatively impacts the standard of living.

The price stability objective will

,

to amend the Cen “ of Nigeria Act AtralbillBank

bringing succor to our people in the implementation of its mandate.

“The dysfunctional state of the banking sector before the advent of the present Governor is possibly conclusive evidence that the CBN not only knowingly failed woefully in its role of regulation and supervision of banks, but also missed the achievement of its prime objective of price stability in the economy by a very wide margin; this failure was in spite of the fortuitous ‘excess’ foreign revenue that should have primed us for success!

“In the light of the foregoing, one must recognize the adept propaganda machinery of the CBN in the last five years, such that while we progressively descended into the pits of poverty as a nation, most Nigeri-

The amended organisational structure would provide some critical checks and balances in a disciplined environment, where appointments are based on merit rather than on ethnic or religious consideration or political patronage.

therefore enable the CBN to adopt the necessary measures, in collaboration with the fiscal authorities, to control the rate of inflation.”

So, in the light of the above self-established standard, how well, we may ask, has the CBN done? We will answer the above question with an excerpt from the series “The Putrid Mess Also in CBN”, which was first published in this column in 2009 (see www.lesleba.com).

“Increasingly more Nigerians look back in nostalgia at the good old days when a medium size loaf of bread cost 10kobo and primary, secondary and even university education in some states were free! Nigeria is now catalogued amongst the poorest nations in the world inexplicably at a time when we earned more foreign revenue than ever before! The government readily admits that over 50% of our population are jobless, and that almost four million youths are thrown into the pool of Unemployed every year! The current minimum wage of N18,000 buys much less than the N250 paid in the 1980s. Obviously, something is fundamentally wrong as these wide price and wage variations cannot be classified as consonant with the CBN prime objective of price stability in the economy and may, indeed, be regarded as prima facie evidence of the failure of CBN in

brief quoted above is defined “as a function of price stability, which is, the ability of a Central Bank to moderate inflation, attain stable interest and exchange rates and create a conducive investment climate for long term growth and development”.

“Inflation impacts negatively on all income earners and consequently adversely affects our standard of living. In growthfocused economies, inflation is regarded as intolerably high if it approaches 3%, and this may be contrasted with consistently double-digit inflation in Nigeria over the last two decades!

Lending rates for commerce and industry in progressive economies hardly exceeds 9%; check Japan’s less than 1% against the 25%+ for such loans in Nigeria. Exchange rates in successful economies recognize the simple laws of demand and supply; in other words, a country’s exchange rate would be stronger in the face of rapidly increasing foreign revenue, especially if its imports values remain largely unchanged or indeed fall. Contrast this with the naira experience, which has suffered tremendous downward pressure in spite of quadrupling foreign income over the years! A graphic example is the naira rate of N80=$1 in 1996 when our total foreign reserves of $4bn provided imports cover for just four months, as against our foreign reserves of over $60bn providing over 36 months imports cover in 20078, yet our naira fell to N140=$1 by the end of that year! Indeed, our current reserves of just below $40bn still provides us with possibly 15 months imports cover, but the naira is still falling and is presently just below N160=$1!

“What we may ask is the impact of these anomalies to economic growth. Well, to start with, serious economies recognize the role of interest rate as a driver of economic development. They recognize that in-

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ans saw the evil machinations of the CBN from a benevolent perspective!

“However, we may ask, how did the CBN get it so wrong with such a costly price to our wellbeing?

T

he answer to this has been canvassed in this column in several articles over the last eight years, and we have maintained unflinchingly that the failure of CBN’s monetary policy framework and the consequent adverse impact on our fortunes as a nation is the bank’s gross mismanagement of money supply! Macroeconomic stability, according to the CBN

Omoh Gabriel Babajide Komolafe Clara Nwachukwu Peter Egwuatu Yinka Kolawole Favour Nnabugwu Godwin Oritse Godfrey Bivbere Yemi Adeoye Oscarline Onwuemenyi Franklin Alli Michael Eboh Amaka Abayomi Ebele Orakpo Ifeyinwa Obi

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vestors and entrepreneurs will refrain from initiating expansion or indeed an industrial concept if the cost of borrowing is prohibitive.

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loan taken at over 20% would almost double in three years, possibly even before the project for which the loan is taken is fully operational. Reduced investment means fewer jobs, and fewer jobs mean less income, not only as tax revenue to government, but also as a depletion of total disposable income in the economy.

This in turn creates an impediment for the survival of existing industries, which depend on a larger base of disposable income. With interest rates above 20%, it is not surprising that we have over 20% of Nigerians unemployed and, we are inevitably now reaping the reward of increasing insecurity.

“The unfortunate inverse relationship between the naira and our foreign reserves is also responsible for the collapse of industries and depletion in the purchasing power of the naira.

Indeed, if our exchange rate mechanism recognizes the laws of demand and supply, fuel prices will fall, deregulation will become possible with all the attendant advantages and industrial raw materials will fall in prices, and price stability with increasing employment will be maintained in the economy!”

Banking supervision and regulation may well be described as Central bank’s secondary role, although, by its nature, it attracts more public attention than the role of maintaining price stability! However, the topsy-turvy nature of the banking subsector in the last 12 years has brought severe deprivations to millions of Nigerians.

Consequently, public perception of CBN’s role in the banking subsector is that of an economically destructive cronyism rather than that of a custodian and enforcer of banking best practices. In spite of the usual boastful assurances of wellbeing by CBN Governors in the past, the banks have always systematically faltered with much collateral distress to millions of Nigerians. It was thus a paradox in May 2012, for Kingsley Moghalu, Deputy Governor Financial Systems Stability, to decry manipulation by stakeholders as the cause of near collapse of capital market at the ongoing House of Representatives Ad-hoc Committee.

Next week, we will take a closer look at what most critics would describe as utmost negligence in CBN’s supervision and control of the money market.

SAVE THE NAIRA, SAVE NIGERIANS! C M Y K

Vanguard, MONDAY, MAY 7, 2012—49

an administration that permitted the sponsorship of protesters in support of Diezani and Oniwon?

If this is the real mindset of the regime, then efforts will be made to paper over the subsidy probe and the offenders will go unpunished. And where will that leave our country and our economy?

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Economy from bad to worse The economy has gone from bad to worse, with our domestic and foreign debts climbing higher and higher in spite of the rising income we reap from our national primary economic product, crude oil. Jonathan hired some of the supposedly best hands available in the areas of finance and the economy (Dr. Ngozi OkonjoIweala), agriculture (Dr. Akinwunmi Adesina), power and steel (Prof Barth Nnaji) and investment and trade (Dr. Olusegun Aganga). No impact has been noticed. In fact, our fortunes in the power sector have dwindled since Nnaji took over, with empty excuses as our daily staple.

GEJ also hired some of the supposedly best hands in security and counter-terrorism. These include the over-decorated General Andrew Owoye Azazi (National Security Adviser) and Lt General Sarkin Yakin Bello, his assistant on counter-terrorism, yet

Before the anti-GEJ marches begin Islamists have continued to widen the scope of their attacks on innocent Nigerians all over Northern Nigeria, with no sign of abatement. What we hear from GEJ, the Minister of Defence Alhaji Haliru Bello and the spokesperson of the State Security Services, Marilyn Ogar, is that the terrorists would “soon” be overcome.

Apart from the perceived inability of the Jonathan government to curtail terrorism and protect the lives and property of Nigerians, corruption has ballooned in this dispensation perhaps more than at any other time in our history. The subsidy probes have unearthed a new kind of corruption. It is no longer ten per cent “kickbacks” for which regimes were toppled in the past.

It has gone beyond inflation of contract sums and deposit of people’s money in banks for personal gain. It is now bigger than creating ghost workers and pensioners. The subsidy probes revealed the new dimension whereby people were given papers to go and collect billions of naira, JUST LIKE THAT! For that, the government and people of Nigeria were milked to the tune of over 2.3 trillion Naira in 2011 alone.

The massive fraud was perpetrated in within the agencies of the Ministry of Petroleum Resources, with another supposedly “best hand”, Mrs. Diezani Alison-Madueke in charge! This lady, who is never short in tons of sibilant grammar, has transferred her serial incompetence which was noticed when she presided over the Federal Ministry of Transport to

those who are determined to finish what is left of the economy.

This resolve became even more urgent when the Political Adviser to President Jonathan, Alhaji Gullak Ali, discredited the subsidy probe, describing it as “lacking credibility”. This was in President Goodluck Jonathan

Gen. Andrew Owoye Azazi, National Security Adviser

Petroleum after a stint in Solid Minerals; her major strong point being that, apart from being from a favoured tribe, she is also highly connected to the ruling families.

Just as the shock of these corruption disclosures started sinking in and Nigerians started asking for action against the looters of our treasury, we started seeing groups of rag-tag youth protesting in the streets of Port Harcourt and Abuja asking us to leave Diezani and the Managing Director of the nest of corruption, the Nigerian National Petroleum Corporation (NNPC), Mr. Austin Oniwon, alone! It was at this point that I decided that the real Nigerians must march to reclaim their country from the hands of

Dr.Ngozi Okonjo-Iweala), Finance Minister

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HEN the petrol subsidy strike took place in January this year I was one of those initially opposed to it. Apart from the fact that I take the activities of some nongovernmental organisations (NGO’s) with a pinch of salt because they are sponsored agents, I am a genuine believer in deregulation, especially of the petroleum downstream. My mind became locked against the protests, especially the ones at the Gani Fawehinmi Square in Lagos, for reasons to be discussed later.

However, I must confess that the protest did produce a very useful outcome in the overall interest of the nation: it spurred the House of Representatives into action. The House suspended its holiday, convened on a Sunday and before long, the petrol subsidy probes were born. Based on the mindbending scale of corruption exposed in the probe, I am now looking forward to the impending street protests being proposed by civil society, but subject to terms and conditions that will shortly be discussed.

First of all, let me summarise my reasons for believing that a wakeup strike on the President Goodluck Jonathan regime is now a matter of utmost national importance. It now one year after Jonathan was sworn in following his election. It is equally two years since he assumed full powers as president of Nigeria and two and a half years since he started calling the shots in the absence of then ailing President Umaru Musa Yar’ Adua.

The question is: what has changed? What has been the GEJ impetus? Almost everybody is now saying perhaps we made a huge mistake in giving him our support, though the opposition parties, especially the Action Congress of Nigeria (ACN) and the Congress for Progressive Change (CPC) did not give us better options.

Prepare for the civil society marches That is why we must prepare for the civil society marches.

However, there is a caveat emptor. Some vested political interests are already getting set to hijack the protest. The Pastor Tunde Bakare-led so-called Save Nigeria Group (SNG), which is now the rabble-rousing platform of the CPC, has served notice that they would organise a march within two weeks unless government acts on the subsidy probe report. In January, it was the fouling of the petrol subsidy strikes organised by Labour that eventually foiled the protests, simply because the CPC and ACN in Lagos coalesced to hijack the Ojota protests, calling for “regime change”. They tried to get through “regime change” what they failed to get at the polls of 2011.

The CPC and ACN must restrict themselves to their democratic roles as parties in opposition and allow Labour and civil society to continue to organise the people

Jonathan hired some of the supposedly best hands available in the areas of finance and the economy (Dr. Ngozi OkonjoIweala), agriculture (Dr. Akinwunmi Adesina), power and steel (Prof Barth Nnaji) and investment and trade (Dr. Olusegun Aganga). No impact has been noticed

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total contrast to the President’s pledge to implement the recommendations of the probe ensuring there would be no sacred cows. I am left to wonder whether Ali’s kite is not the real posture of

whenever necessary (as it is now) to give the government a piece of their minds. Any attempt by politicians to hijack this event must be resisted. Let politicians keep out of these protests!

this nature (as doctors are used to seeing sick people die) that they no longer feel anything? I hope the University, which prides itself as an institution that trains entrepreneurs giving its students the competitive edge, does live up to its billing.

Otti shares similar achievement traits with Governor Amaechi, who also graduated with him from the same University in 1998.

While one became a governor the other became the chief executive of one of the nation’s stablest banks.

That relationship, which remained unbroken over the years, was confirmed with a banquet in honour of Otti at the Government House later that evening.

With this in mind, the graduating students should take heart in the fact that though the job situation out there is bleak, there are still quite a number of people surging ahead in spite of the odds.

‘Everything is turning around…'

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ENULTIMATE Saturday, I joined other friends and well wishers of Mazi Alex Otti, the Group Managing Director of Diamond Bank Plc as he received a Doctor of Science Degree (Honoris Causa) conferred on him by the University of Port Harcourt.

I was overcome with sadness when the bandstand started singing the stirring gospel song: I can see everything turning around for my good, and the over five thousand graduands, young men and women, joined in a joyful chorus and dancing, obviously claiming that prophecy for themselves. And yet they were about to be let go into a world full of despair, joblessness and hopelessness.

From the sheltered care and financial support of their parents and guardians, these youth would henceforth lose the right to ask for pocket or upkeep money. Currently, Nigeria has 117 universities, and most of them will be similarly graduating thousands of students into a labour market that has very little space for newcomers.

I wondered whether the same feeling that was going through me was going through the Minister of Education, Professor Ruqqayatu Rufai and Mr. Nyesom Wike, her counter part Minister of State, as well as the Governor, Chibuike Amaechi? Or, perhaps, these government officials are so used to scenes of

Otti is a rare testimonial to this. A First Class graduate of Economics and Best Graduating Student/ Valedictorian of UNIPORT in 1988, Otti is the first and only alumnus of the University to be conferred with its honorary degree, apart from also having recently completed his tenure as a member of the University’s Governing Council.

50 — Vanguard, MONDAY, MAY 7, 2012

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HE endorsement of Governor Adams Oshiomhole as the Bini candidate by the Palace of the Oba of Benin, last week, must have left a pill, too bitter to swallow, in the mouth of the PDP candidate, Charles Airhiavbere and his supporters because it has completely rubbished the plans of his leader, Chief Tony Anenih and Mr Dan Orbih, the state party chairman who influenced his emergence as the PDP flagbearer.

What is baffling is that the handwriting had been on the wall for a long time, but Anenih, Orbih, Airhiavbere and others in the PDP had ignored it.

Last year, during a thank you visit to the Royal Majesty after the victory of the ACN candidates in the National Assembly election of Saturday, April 9, the royal father had said: “In 2012 when you go for re-election, all these your people will make sure that you come back again.

“They must all work together to bring you in again. Thank you your excellency for what you are doing in Benin City and for this ‘thank you’ visit”.

Again, the royal father, who rarely speaks but whose words carry a lot of weight in the country and outside the country had, during another visit to him by ACN stalwarts who paid him a courtesy visit, told the party delegation that:

“You are all praying for Oshiomhole to come back in 2012.

We are also hoping that he comes back and I and my chiefs say you will come back and complete unfinished projects”.

However, the Oba is not alone in his support for Oshiomhole, many other royal fathers across the state had at one time or the other thrown their support behind the ComradeGovernor.

Royal fathers normally prefer to speak in parables, but this time, they chose to speak plainly so that their message will not be confused by those who may find their parables too difficult to decipher.

From Edo South to Edo Central to Edo North, the royal fathers' message is the same: “We want Oshiomhole to return in 2012 to complete the good works he has begun”.

The Eidenojie of Uromi, Zaiki Anslem Ehizojie minced no words too when he openly declared support for Oshiomhole. Speaking during one of the campaign visits to his palace, he said: “Your Excellency, I refer to you as an accomplished son of Uromi. We are very proud of you, we are very proud of your developmental efforts. I pray for you always that God in his infinite mercies will continue to protect and guide you so that you will deliver a total dividend of democracy.

“When you visited me in 2007 for campaign and I passionately

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appealed to you that when you eventually become Governor you should not forget Uromi and you should not say Uromi has been in the mainstream of Nigerian politics, for that reason you won’t bother yourself about them. I am very sure that Uromi people all over the world are proud of the projects that you have attracted to Uromiland. Your Excellency, if someone says you have not put gold on the streets of Uromi, he should not be taken seriously, that person should be ignored. Because if what one government could not achieve in ten years, in only two years you are doing it, then we should thank God for giving you to Edo State. I want to assure Your Excellency that myself and the people of Uromi will continue to support you and we will vote en masse for you”.

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ust as the Uromi royal father gave his unflinching endorsement, so did his brother royal father, the Onojie of Igueben who told the Governor during a visit that “ we have absolute confidence in your government.

A serial killer on rampage

BY ABIMBOLA THOMAS & TAIWO ALAKA

H

E is lethal, he is dangerous, he is very vicious. His name Pedro perhaps is his nom de guerre; others call him Mr. K. His presence in Iba Housing Estate sends shivers down the spines of residents. At such times parents call in their wards in hushed tones: “Pedro is in the Estate who will be his next victim?” He is ably assisted by two equally vicious ones called Sunnypa and Teeboy. This is the gang that daily terrorises Iba Housing Estate. Their presence in the Estate means one or more murders and family grief. Residents scurry into safety anytime they sight him and Sunnypa. At such times with the arrogant air of an emperor, he waves, assuring them in Yoruba language: “Mi o ba ti yin wa sibi” (I am not here for you). But such times are rare.

For four years, there has hardly been any murder in the estate without the names of these criminal psychopaths allegedly associated with it. The Police at Ojo have their names in their wanted persons list. In spite of this, Pedro and his gang continue to strike and disappear. He lies low for a while until he could no longer resist his thirst for blood. He shows up to slake it and disappears again. Years of killing has numbed his senses. He casually calls blood red wine and victims, suppliers. Iba Housing Estate is his farm.

Residents are like “lambs led to the slaughter without voice”. Victims are buried quietly by their parents without even bothering to complain to Police since Pedro appears invisible to arrest. The most they do is to relocate out of the estate. In broad day light, Indian hemp smoking youths are found stopping buses and robbing passengers of their belongings.

When Pedro goes on his killing spree either in the estate or the environs, it is

usually accompanied with so much bravado.

On his return trip from such exercise, he and his gang would rob anybody or shops in sight.

Last year a CMO member of St. Augustine’s Catholic Church, Iba, Mr. Okogwu (not real name) had his son murdered allegedly by the notorious Pedro.

He used a decoy to get the son from his home and got him shot in broad day light at about 11am. All who saw him said he calmly mounted his motorbike and got away leisurely. The devastated Okogwu family buried their son and relocated out of the estate. Statistics has it that there has been no less than 10 murders in the estate in the last five years. Parents of victims are too scared to bother about police investigation.

Recently, an Austria-based Nigerian was murdered at 2pm at Iba Housing Estate.

The victim, Mr. Onome, son of a businessman, was with a friend in front of a kiosk when three boys on two motorbikes stopped to rob them of their handsets and money. Getting no money from Onome, one of them stabbed him through the ribs.

His friend who they also wanted to kill escaped. The three assailants escaped in two motorbikes leaving Onome in a pool of his blood. He was rushed to a nearby hospital where he died before help could reach him. Those who saw the incident alleged that two of the assailants were Pedro and Sunnypa with Teeboy in toe. We understand the case was reported at Panti and Ojo Police stations.

The late Mr. Onome who lived in Vienna was in Nigeria to effect his marriage. His wife returned alone leaving him to sort out his re-entry visa. He was preparing to leave for Vienna in the week he was murdered.

He died leaving behind a devastated wife, parents and siblings. Our effort to reach his parents was turned down as they were still in shock and deep grief and possibly too scared to talk. Neigbhours of the parents

Your Excellency, achievements speak loud for you. In 2012 for your re-election, we believe that if you continue at this rate, what we are hearing and witnessing in Lagos will be a child’s play and these achievements will continue to live and speak after your tenure.

So we urge you to continue in that stead. We are grateful, we are happy for the roads being constructed in our local government: The Udo-Igueben road; Ewohinmi-Igueben road; a secondary school here is going on; however, we are asking that more of such model schools be established in this local government because we are a young local government and will want to catch up with others. I tell my people that the ComradeGovernor is equal to the task of developing the Local Government because we associate our Governor with successes.

“We heard that you have awarded the contract for erosion control in Benin. We all have our children in Benin, so we are fully part of that programme and we support you because we know that if Benin is taken care of as you told us in the past, then you’ll have little to do in our local government and other local governments. As the traditional ruler, I know that you have the support of Igueben Local Government already because your projects are already speaking for you. We thank you and pray that you’ll continue to work as you have been working.”

For the Onojie of Ekpoma, Abumere II, the message remains the same. He said: “I want to use this opportunity to thank you very much for the kind of heart you have.

To get a leader is always very difficult, but when you get one you’ll know. I know several

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BY SAMUEL EGUAIKHIDE

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Oba’s endorsement of Oshiomhole and Airhiavbere’s dilemma

From Edo South to Edo Central to Edo North, the royal fathers' message is the same: “We want Oshiomhole to return in 2012 to complete the good works he has begun”

The estate is a hotbed for gang fights; unless the Police gets hard on the operation of these gangs, they should be prepared for more murders; the estate deserves a full fledged police station

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testified to their humility and kindness and wondered why such calamity should befall such kind hearted people. It is sad that families continue to be thrown into grief because of a notorious criminal who the police cannot arrest. As long as Pedro and his gangs continue to remain invisible, many more families will continue to grieve.

We were told that Pedro in blood soaked dress ran to the house of an Area Mama called Maale- where he hid and washed his clothes after allegedly killing Onome on the January 23. Pedro’s father died a few years ago broken-hearted from all the troubles he gave him. His mother lives alone at Iba. We learnt that he was thrown out of school after the school authorities could not cope with his criminal tendencies.

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ince the killing, he has temporarily relocated to Cotonou possibly to network with other gangs there. But we believe it would not be long before he gets hungry and thirsty for blood. Police will have to do more before the gang strikes again. Meanwhile, Iba Housing Estate has been quiet since Onome’s death. Pedro, Sunnypa and Teeboy have not been seen in the estate since the incident.

Even as Onome’s parents and siblings declined to talk to us, we still succeeded in mixing up with the mourners at the cemetery where Onome was buried. For them, they were ready to bury their son and

occasions that I met with you. If you will remember, I always tell you that I appreciate you because it’s very rare to get a leader like you. I know that this success is also a contribution of the party leaders and the people that are working with you. You are somebody who says something and does it. I will appeal to you, Nigeria is for all of us, your voice might not be loud enough but I want you to continue to talk. A lot of people are watching, they know the right thing, everybody knows the truth, but I pray that God will one day raise up people who are like you that will deliver the people from poverty. You are mentioning the things you have done in Ekpoma, Esan West, but you did not mention everything, you just mentioned only a few of them. You don’t need to mention the transformers because you brought transformers in many places, everywhere.

“On two occasions you came here and some communities were asking for transformers and you promised them transformers and immediately it was delivered and those communities are very happy today. The borehole you sunk, thank God that water is coming out now. The impression they gave us was that it's very impossible to get water in Ekpoma, but we thank God that water is coming out and I know this will go a long way to help us. I want you to know that you are the Governor of Edo State.

We will give you all the support to make you succeed because I have seen the kind of man that you are.

You are somebody, what Esan call Akhuamen".

Mr. Eguaikhide, a commentator on national issues, wrote from Ekpoma, Edo State.

move on. And this is the very attitude that has kept this evil to thrive. O! what an emotional and pathetic scene as the young widow struggled to break loose and plunge into the grave. A copious flow of tears from everybody as we watched her thrashing on the ground and calling on God to avenge the death of her husband. We understand the marriage was only three weeks in consummation. The wife has since returned to Vienna blank and empty. One can never wish this for one's daughter!

In investigating the killings in the estate and to do this report, we have had to smoke Indian hemp with the gangs in the Housing Estate for two months almost to a point of addiction. On two occasions, we planned operations with them but deliberately aborted the implementation under the pretext that the Police had become aware of our plans.

The very strange thing is that the Police is totally helpless in tracking Pedro and his gang down with the excuse that it does not know them. One thing in the gang's favour is the fear they have successfully instilled in the area. Everybody talks about them in hushed tones, looking across his/her shoulders. This was our observation while researching this story. None of the parents of the victims we tracked was ready to talk to us, including those that have relocated from the estate.

Pedro is the Nigerian version of unibomber, Mr. Theodore John Kaczynski, the American serial killer who killed for many years and remained elusive until he was arrested, tried and jailed for life without parole.

To come nearer home, Pedro is a reincarnation of the late Lawrence Anini, the robbery kingpin in Edo State in the '80s.

The Estate is a hotbed for gang fights.

Unless the Police gets hard on the operation of these gangs, they should be prepared for more murders. The estate deserves a full fledged police station. The killings must stop but they cannot stop without a conscious effort by the government. *Messr. Thomas & Alaka, public affairs commentators, wrote from Lagos.

Vanguard, MONDAY, MAY 7, 2012 —51

H

I READERS! Dicta offered to go pick our cousin, Kate, up at the airport on the Friday she was returning to Lagos from the East.

“Why would you want to do that?” I asked, eyeing her with some suspicion. Even though she had asked me to forgive Kate for her indiscretions because it was Lent, I queried her motive.

Besides, she’s a workaholic who hates being away from her desk.

“Just so you can rest a bit, sister.

You’ve been looking a bit worn out lately. It must be the stress of the job. It’s so hectic. Don’t worry about me. It’s okay for me to go meet sister Kate. Work can wait.”

“But I can send the driver if I’m too busy to go to the airport, Dicta.

I do appreciate very much your kind offer, but I don’t want you to go upset Kate in any way with a confrontation.” “Sister, it would be a justified confrontation. It was a despicable thing that she did to you and also to uncle Seb?” Plot on Kate's conscience “She’s our guest, and our cousin, so we have to treat her decently, Dicta dear. And come to think of it, you told me just a few days ago, that I should let her know that I’m aware that she’s been after Seb all these years, but that I should then tell her that I forgive her. That way, you said she would feel humiliated and would be thoroughly ashamed of her actions. Now, you’re saying you want to go tell her her sins yourself.

Why?” “When I’ve stirred up her conscience on our way from the airport, she would feel remorseful and be grateful for your decision to forgive her. If you were to bring up the topic yourself first, you know how sister Kate is; she could ask you ‘so what?’ How would you handle that? You know how cocky she can be when accused of anything she’s guilty of.”

“I would punch her nose, if she’s cocky with me. She knows me well.

LIFE WITH TREENA KWENTA

- the funloving, but hardworking single parent

Lying in wait! telephone every day since she left.

She told me she met a friend in Onitsha, and that they were going sight-seeing in Abuja. I don’t know what that means. Probably, she’s met a guy she likes.”

“I see. We spoke on telephone too, but she never confided those details to me. That’s strange.”

“But sister, you know that she and I are friends. She says I make her feel young. I guess we won’t be friends any longer, after what I’m going to tell her. That doesn’t bother me. If not checked, she’s going to hurt you or uncle Seb again in future. That would be an affront to this arm of the family.

She should know that you have people to speak up for you, since you like playing ‘the lady’. As for me, I revel in playing dirty, just like auntie Tayo.”

“Hm! Okay, just be careful Dicta dear. Mum and dad, not to mention our brothers, would be quite cross with us both if you disrespect her.”

“I assure you, I won’t, sister. I’m not in my profession for nothing.

We’re taught how to handle all categories of people. We can rough up people without leaving any noticeable bruises.”

I looked at Dicta. Did those words come from my baby sister?

When she left, I gave instructions to nanny about meals for Kate, and the guest room.

“Madam, is she coming back here?” asked nanny with some

,

Two hours later, Michel rang to say that nanny wants him to tell me that Kate had brought a man along with her, and it appears he was going to stay at my place as well

She knows I too can play the area girl when necessary.”

“But sister, you’ve just said we shouldn’t upset her in any way.

Sister, she’s your guest, so, you can tread softly with her. I don’t have such restrictions. I’m mature enough now to handle the situation in a responsible way.

She shouldn’t be allowed to get away with insulting you, on top of all the nonsense she had done.

Leave things to me. I’ll go straight from home to the airport. She said she’ll be on the first flight from Abuja.”

“Abuja? She’s no business in Abuja. She went to Enugu and Onitsha, not Abuja.”

“Well, she ended up there, and that’s where she’s coming from this morning.”

“How did you know all this, anyway?”

“Sister, you’ve forgotten that she calls me her ‘Pet!’ We’’ve been on

,

malice.

“Of course she is. Aren’t her things in our guest room?”

“They are. I thought, now that her offence is in the open, she wouldn’t want to come stay with us. She should feel ashamed of herself. Frankly, madam, I don’t feel like cooking for her or looking after her. There would be some hurt in my heart all along while doing things for her. The priest says that’s a sin. I went for confession last week. If she returns here, it means I will sin again. I don’t like that.”

“I understand, nanny, but she doesn’t know that I know yet, so, it would be strange if we treat her like an outcast when she returns.

Now, be your good self and let’s do the right thing. She has only a few days more here before she returns to her base abroad. Let’s do our best. I’ll leave for work soon.

Dicta will pick Kate up at the

airport and then come drop her here.”

“Madam! Sisi Dicta is picking up mama Raheem? Hm! God help us! I hope this house will still be standing in the evening.”

I brushed nanny snide remark aside, got into the car and the

driver raced off to the office. There was so much to do.

Kate’s flight must have come in late because it was well past lunch time when Dicta, who also works in Apapa some streets away from me, passed by my office to tell me she had dropped Kate at my place.

“Thank you so much, Dicta dear.

I have so much work to do here that it would have been terrible if I had had to go meet Kate at the airport. Hope all went well.”

“Perfect, sister. Perfect. I must go report at my post. Good jobs are not exactly floating around just now, so, one must not neglect the one at hand. See ya!”

Kate's unannounced visit Two hours later, Michel rang to say that nanny wants him to tell me that Kate had brought a man along with her, and it appears he was going to stay at my place as well.

I was stunned. What had Kate done that for? To work me up?

She may be Nigerian, but she’s lived in a western culture long enough to know that it isn’t the done thing to show up unannounced in anybody ’s house, let alone bring along another unannounced guest.

“Madam, shall I go tell the man that there’s no place for him there?” Michel asked.

“Hey! Michel, you can’t do that!

I can’t pluck up the courage to say that to my cousin’s friend, let alone you who doesn’t live there.”

“What are we to do about it, madam? We don’t know the man.

He may be a criminal. Nanny sounded distressed when she rang me, so, I went to take a look at him.”

“What does he look like?”

“Well, he looked normal, and was decently dressed, but I didn’t like the way he was entertaining himself in your house. He went to to help himself with drinks from the cabinet. I was shocked.

Madam Kate didn’t seem to mind.

They were both chatting cosily and laughing all the time I was there.

Just as a warning, I told Madam Kate that oga said I should start spending the nights there. She asked me why. I told her that that’s what oga wants. The man asked her who I was referring to, and she told him that it was her inlaw.”

“What did the man say to that?”

“Nothing. He carried on drinking and he told nanny to go bring him more snacks. It was like he owns the place.” “Dicta passed by here after dropping Kate. She didn’t mention that she brought a man from Onitsha, or Abuja – wherever she was coming from.

Look, Michel, thank you for your concern. It could be that the man is our relative. I’ll deal with the

matter when I return home. I’ll ring up Dicta to find out what she knows about it.”

“Alright madam. Shall I be coming to spend the nights there until Madam Kate and/or the man leaves? Oga doesn’t think you and nanny should be left alone if the man has to stay.”

“Er, when you say, ‘oga’, Michel, do you mean Milwan’s dad? Does he know about the man?”

“Ah, nanny and I decided that he should know at once. If we didn’t and anything bad happens there, he would blame us. He also told me to ring up uncle Joe so that he would be aware what’s going on at your place. Left to me I think the man should be asked to leave, madam. I don’t know w h y Madam K a t e brought h i m .

Where’s he going to sleep there, anyway?

One can’t ask him to stay in the rooms at the back.

What if he gets out a gun in the dead of the night, shoots the dog and the guard a n d breaks in?”

“Michel!

G o d forbid that! Also I don’t

have anything worth stealing.”

“But he wouldn’t know that, would he? Anyway, uncle Joe said he would look in in the evening, much later. After their evening service.” “He would know how to handle the matter, Michel.

Thanks a lot. I must get back to my work now. I’’ll send you a recharge card. This is a long call.”

“Thank you, madam, but oga left money for our recharge cards so that we could call him regularly.

Bye, madam.”

I tried to get Dicta on telephone, but couldn’t. I pushed the matter aside and concentrated on my work. I’ll pick it up later when I’m through with the day’s work.

D

icta rang as I was leaving the office. I asked her who Kate had brought.

“She introduced him as ‘Dean’, a business man one of her cousins introduced to her in Onitsha. They went to spend a night in Abuja, ‘sight-seeing’ she said. You should see how they were acting lovey-dovey in the car, like teenagers. He’s very goodlooking, anyway, and decently dressed. Must be in his fifties.

Looks civilized and cultured too.

But he looks like a sponger. I won’t be surprised to hear that sister Kate bankrolled their trip to Abuja, and down to Lagos.”

“Why do you say that?”

“Just a haunch I got. I’m never wrong in these things. He looks like a woman-user to me.”

I laughed. “Is that what such type is called these days?”

“Just a word I coined, sister. Er, I couldn’t discuss that matter, obviously. Brother Joe said he would talk to sister Kate. He’s coming to your place tonight. The man’s dishy and charming, sister.

It’s easy for ladies to fall for him.

Sister Kate certainly has.”

“I see. Have you?”

“Oh no! He’s too old for me, and not my type. Besides, I’m happily married.”

We joked some more, and rang off. I was curious to see this charmer that my cousin just had to bring with her.

Tara.

52—Vanguard, MONDAY,

MAY 7, 2012

2015: So what’s on Jonathan’s mind?

THE presidency claims the politics of 2015 is not on its mind. So what then has been occupying the mind of the President?

BY EMMANUEL AZIKEN, POLITICAL EDITOR

I

C M Y K

President's priority ffirming the President’s commitment to governance, Dr. Abati his spokesman said:“The President’s sole preoccupation as the nation moves towards the first anniversary of his administration on May 29, 2012 is to continue to give effective and purposeful leadership that will steer Nigeria towards overcoming its immediate security and developmental challenges.

“Nothing could be farther from President Jonathan’s mind at this point in time than the 2015 elections. The President has definitely not directed or authorized any individual or group to launch any campaign on his behalf.”

The Arewa Consultative Forum, ACF in its reaction to the presidency statement noted thus: “President Jonathan told the world that four years is enough for a President to make a difference in the life of a nation; and that any leader who cannot do that is most unlikely to do so if given more years,” the ACF’s national publicity secretary, Anthony A.Z. Sani told Vanguard.

Noting why the President should be taken for his words Sani said: ‘’I see no reasons why people are eager to doubt the President’s words of honour. In any case, this is time for governance and not for politics,” Sani added. The Action Congress of Nigeria, ACN in its own reaction said it was not bothered whether Dr. Jonathan would contest the 2015 contest or not, but rather concerned about the state of governance.

ACN not bothered: In a statement issued by Alhaji Lai Mohammed, the party’s national publicity secretary the party said: “Mr. President, we in the ACN are not bothered about whether or not you plan to run in 2015.

What concerns us now is how to alleviate the collective suffering of the Nigerian people, who have experienced more pain than gain in one year of your administration, and have yet to reap the fruits of democracy almost 15 years of the country’s return to constitutional order Continues on page 53

A

*President Jonathan was bent on wresting power from Jonathan at that time.

After the success of the 2011 it was not difficult for those around the palace of power to set their eyes on 2015.

P

resident Jonathan’s adopted political father, Chief Edwin Clark has since after the last election repeatedly given vent to the eligibility of the President to seek a second term in office.

Speaking during a ceremony in Lagos last month where Presidential Adviser, Kingsley Kuku was honoured as Maritime Man of the Year, he said: “Even though I do not want to talk about 2015 now because the time is still far, the North should know that only Nigerians have the power to stop anyone from becoming president. If Jonathan wants to run today, the North cannot stop him because apart from the fact that he has the right to run, the

,

F not 2015, then what could be on the mind of President Goodluck Jonathan?

That was the unfolding scenario at the weekend after a terse presidency statement denouncing what it claimed as distractions arising from the debate on the President’s alleged bid for re-election in 2015.

In the statement issued on his behalf by his Special Adviser on Media, Dr. Rueben Abati the President denounced the mounting speculation concerning his political future saying that he was presently focused on solving the present challenges facing the country.

“For the avoidance of any doubt whatsoever, President Jonathan wishes to reiterate that his primary concern and the focus of all his efforts now, just about a year into the four-year tenure for which he was elected in April 2011, is to deliver on his promise of positive national transformation,” Dr. Abati said in the statement.

The presidential declaration follows insinuations of an alleged pledge made by President Jonathan ahead of the last presidential election where he was quoted to have claimed that he would not contest the 2015 election if elected in 2011.

The president’s pledge has, however, turned into a matter of controversy as those close to him have claimed that no such declaration was made. Rather, associates claim that the President’s statement was misinterpreted.

2015 not in my mind — Jonathan Addressing the Nigerian community in Addis Ababa during a visit to Ethiopia just before the April 2011 presidential election, the President had said:“If I’m voted into power, within the next four years, the issue of power will become a thing of the past. Four years are enough for anyone in power to make significant improvement and if I can’t improve on power within this period, it then means I cannot do anything, even if I am there for the next four years.”

Remarkably, the President did not disclaim the interpretation given to his Addis Ababa declaration at that time. Doing so it is believed would have been rather politically imprudent given the challenge from the Mallam Adamu Ciroma led Northern Political Leaders Forum, which

month.

Dr. Mohammed was a commissioner at the Oil Minerals Areas Producing and Development Commission, OMPADEC where Dr. Jonathan worked as a director before his advent into the political terrain.

Dr. Mohammed and his group had pledged some weeks ago that they would go to court to obtain a legal restraint against the President contesting in 2015 on the basis that he would have completed his second term in 2015. The hullabaloo over the President’s intention was apparently what the presidential statement sought to address.

If Jonathan wants to run today, the North cannot stop him because apart from the fact that he has the right to run, the North should equally know that they are not born to rule over others in the country

North should equally know that they are not born to rule over others in the country.”

The assertions by Clark and some other associates of the President may have prompted the Dr. Junaid Mohammed led Northern group of professionals and politicians to accuse the President of seeking what it claimed is a third term in 2015.

The group has claimed that the President is now serving his second term as it counted the President’s succession of President having served a full year as President and some months in acting capacity as his

,

first term.

Dr. Mohammed, one of the leading northern hotheads has been quoted as saying that the President was bent on contesting the 2015 presidential election.

“As far as I am concerned, there is no need deceiving ourselves.

I believe President Goodluck Jonathan whom I knew since he was a director under me has every intention to contest the 2015 presidential election, even if it means throwing the country into civil war or other forms of civil disobedience or confusion or catastrophe,” he was quoted as telling a national newspaper last

Vanguard, MONDAY, MAY 7, 2012 — 53

Aregbesola optimistic over gold discovery

Rural communities, NGOs partner Ondo on devt

BY DAYO JOHNSON

G

A

KURE—ONDO State Government weekend unfolded plans to involve residents of rural communities in its projects to be embarked upon in government’s development efforts.

The Special Assistant to the Governor on Community Development and Non-Governmental Organisations, NGO, matters, Mrs. Bolanle Olafunmiloye, who disclosed this in Akure noted that government would collaborate with the various civil society groups in the state to achieve a successful implementation of such programmes.

She said the essence of the joint effort between the government and the civil society sector was to ensure that the direct beneficiaries determine the projects they wanted and play active roles in the funding and management after execution.

Olafunmiloye noted that

... as Osun sponsors 98 medical students to Ukraine

BY GBENGA OLARINOYE

O

SUN State Government is set to sponsor 98 Clinical Students of the College of Medicine of the Osun State University, UNIOSUN, to complete their medical studies in the Karazin University in Ukraine on scholarship.

The programme, expected to last for two years, would cost the government not less than N146 million for the training.

Governor Rauf Aregbesola disclosed this in Osogbo, weekend during a meeting with the Concerned Parents of Medical Students in UNIOSUN, saying that the government would foot all the bills that would be required for the two years programme abroad.

The students, who were in their year three, four and five were said to have been stagnated in their studies for the past three years and could not continue their training because of non-accredited teaching hospital at UNIOSUN.

LAUNCH: From left— Mr. Fred Chiazor, Chairman Fortification Alliance of Nigeria; Mrs Sinmidele Onabajo, Deputy Director, representing NAFDAC DG; Mr. Chris Isokpunwu, Head Nutrition, Federal Ministry of Health; Mr. Guy Kellaway, Category Business Manager, Cucinary Nestle, and Dr. Samuel Adenekan, Corporate Communication & Public Affairs Manager, at the official presentation of the first Nigerian seasoning cube to be fortified with iron, MAGGI Cube, by Nestle Nigeria Plc in Lagos. PHOTO: Joe Akintola, Photo Editor.

Tension as Oyo monarch faults Ajimobi's deposition order

BY OLA AJAYI

I

B A D A N — APPREHENSION has engulfed Ago Oja community in the old Oyo province after the Baale installed by the former Governor Adebayo AlaoAkala, Alhaji Ganiyu Busari, purportedly removed from office by Governor Abiola Ajimobi, weekend, rejected his deposition and described the governor’s action as usurpation of the function of the judiciary.

Though the state government said it had acted on two separate court orders that nullified the installation of the chief, Busari claimed he was not aware of any court order and also denied receipt of any letter terminating his rulership as Oloja of Ago Oja. Speaking through his counsel, Biodun AbdulRaheem, the chief said: “As of 12.00pm today (yesterday) being 6th of May, 2012, no letter bearing the description of the one referred to has been served on our client or in any way brought to his attention.”

But Vanguard gathered that the letter of deposition was signed by the state Commissioner for Local Government and Chieftaincy Matters, Mr. Peter Odetomi.

Ajimobi, through the commissioner said that Alhaji Busari must comply with an extant judgment restraining him from parading himself as a traditional ruler and vacate the official residence of Ashipa Oyo. The directive was contained in a letter marked

CB141\38\7T1\131, dated May 4, 2012 and directed to the Chairman, Atiba Local Government for immediate action.

According to the letter “the state government hereby directs that Alhaji Ganiyu Ajiboye Busari should cease from parading himself as Baale/ Alago of Ajo-Oja at least pending the determination of his appeal and should vacate the palace meant for Ashipa.”

Justice Olu Akinola (rtd) had on July 31, 2007 ruled that the title of Ago Oja never existed in history, and so Chief Busari should stop parading himself as such.

But while the appeal by Baale is still pending, another Judge, Akinteye on May 7, 2008 in the suit marked HOY/31/2007 granted an “interlocutory injunction restraining both parties from setting any machinery in motion for the

selection, nomination, appointment, recognition or for any person to hold himself out as a candidate or holder of Ashipa of Oyo chieftaincy title, pending the final determination of this case.”

The installation of the Baale in the domain of the Alaafin of Oyo, Oba Lamidi Adeyemi had generated ripples between the monarch and the former governor.

It was believed then that Otunba Alao-Akala created the title to reduce the influence of the Alaafin of Oyo in his domain.

Dissatisfied with his installation as Oloja of Ago Oja, Oba Adeyemi challenged the action of the ex-governor in the State High Court and the ruler was ordered by Justices O.A. Akinola and J. A Fabiyi in their rulings marked HOG/14/2006 and CA/1/M267/07 to vacate

the seat as they said “the creation, appointment and installation of Baale Ago Oja were illegal, unconstitutional null and void.”

However, Otunba AlaoAkala, probably due to political differences between him and the monarch, refused to obey the court rulings until he vacated the government house. Oba Adeyemi then filed another suit that the court should commit the then out-going Governor, Alao-Akala and his then Commissioner for Justice, Mr. Ladi Abdusalam and Alago Oja to prison custody for allegedly refusing to obey the two separate court orders.

In a suit no. HOY462006, Justice Olu S. Akinola, had ruled that the title of Baale Ago-Oja does not exist in Atiba Local Government and ordered that Ganiyu Ajiboye Busari should stop parading himself as such.

OVERNOR Rauf Aregbesola of Osun State weekend assured the people of the state of better days ahead as he received the reports of the discovery of gold in its primary form in the state, even as the state would spend N300 million on the construction of Hydro Power Station, at Ikeji-Ile in Oriade Local Government Council Area of the state.

The Governor spoke during the presentation of the report on exploration of acquired mineral licenses in the state by the Director General, Geological Survey Agency, Abuja at the Executive Chamber of the Governor ’s Office in Osogbo. Aregbesola said the result of what the agency had done on the discovery of gold in its primary form, would not only benefit the present generation in Osun, but generation yet unborn in the state, SouthWest region and the country at large.

Meantime, the state is to spend the sum of N300 million on the construction of Hydro Power Station, at Ikeji-Ile in Oriade Local Government Council Area of the state.

Commissioner for Regional Integration and Special Duties, Mr. Bashiru Ajibola, announced while addressing journalists after the state Executive Council meeting in Osogbo.

The Commissioner noted that at the completion of the project, it would generate enough electricity for the Ijesa-axis for a start.

Ajibola pointed out that N180 million had been paid out of the entire amount required and work had commenced in earnest.

ACN blames insecurity on FG

BY OLA AJAYI

I

BADAN—ACTION Congress of Nigeria, ACN, weekend said terrorists’ insurgency in the northern part of the country assumed dangerous dimension because it was badly managed by the President Goodluck J o n a t h a n - l e d administration.

The party spoke through its National Publicity Secretar y, Alhaji Lai Mohammed during the presentation

of relief materials by Afro media Plc to Governor Abiola Ajimobi for victims of last year flood disaster.

He said, if the confrontation of the group which started as a local dispute occasioned by alleged marginalization, was properly handled, it would not have reached this unmanageable level, arguing that unless President Goodluck Jonathan opened negotiation with the group, peace may

continue to elude the country.

Earlier, Gover nor Ajimobi said the state had begun massive rehabilitation and construction of roads to prevent another occurrence of last year flood disaster which killed hundreds of people.

He said no fewer than 192 roads were being rehabilitated and constructed in the state and noted that drainages blocked for several years without

attention were being cleared to allow easy flow of water.

Speaking earlier, the Group Managing Director and Chief executive Officer of Afro Media Plc, Mr. Akin Ire Olapade, said his company was sad when they heard about the devastating flood disaster.

Others that were in the team were directors of the company, Alhaji Gobi Mohammed, Mr. Nwachukwu, Mr. Dele Aina and Mr. Williams.

54 — Vanguard, MONDAY,

MAY 7, 2012

‘Yes, I slept with my daughter but didn’t impregnate her’

By ALBERT AKPOR

D

ESCRIBE it with whatever adjective; incest, abomination , absurdity etc, one thing is clear: for a father to conceive in whatever guise, strip her daughter naked and sleep with her, the same daughter who is a product of his semen is nothing short of insanity.

In fact, this man (points at him) is a goat. I think if there is anywhere worse than hell, not the Nigerian prisons, that is where this man deserves to go.;” remarked an unnamed angry woman police Sergeant.

Staring into space as if lost in thought while betraying emotions, Mr. Peter Okeke a 60 year old Orlu, Imo state born security guard portrayed a vivid picture of the biblical defenceless lamb led to the slaughter; as policemen , women and even visitors to the command rained curses on him for his abominable deed which on the long run claimed the life of his eighteen year old daughter, Adaobi. All he could do at the commencement of this interview was beg for forgiveness. “I want everybody, even government to forgive me.

I know what I have done is bad, but to err is human and to forgive, divine. She was my daughter and I loved her until her death. I did not know what came over me the first day I slept with her. I think it was alcohol.” he lamented.

Investigation revealed that

Peter Okeke heavy with a baby for him. This did not go down well with Lucky who was said to have recalled to her girl friend that they never had it bare together; not even once since they started dating. To satisfy all righteousness however, a blood test was conducted. And the result vindicated Mr. Lucky and of course, left Adaobi with

,

On that day, I took three bottles of beer and two shots of local gin called Ogogoro. So when I came in, I just removed my clothes

Mr. Okeke the father of six, first had canal knowledge of her daughter when she was 13 and had been sleeping with her until late last year when the girl became pregnant. However, in between time, Adaobi was said to have picked a boy friend simply identified as Lucky and both of them were constantly seen together at Oha village, a suburb along Sapele road Benin city, the Edo state capital.

The lid was however, blown open after Adaobi announced to her lover -boy that she was

,

no other alternative than to confess the reality to her mother who had at the time, abandoned her matrimonial home for her Osu village for an unknown reason. It was therefore, obvious that Mr Peter Okeke was responsible for Miss Adaobi Okeke’s pregnancy!

The abominable act was reported at his home town and Mr. Okeke was invited to cleans the land but refused to appear before the elders of his community.

Nine months later, Adoabi

delivered a bouncing baby boy but died of jaundice shortly afterwards. Again, Mr. Okeke compounded his sin by secretly burying the baby all alone without consulting his kinsmen. Months after, Adaobi also fell ill and died. But an attempt to have her secretly buried without informing anybody, not even neighbors led to the invitation of detectives from the Homicide department of the Edo state command.

Giving an insight to how he committed the act, a sober looking Okeke said, “Look at me, do I look like a criminal? The girl in question was my daughter and I loved her until her death. I wanted her to go to school but she opted for hair -dressing. I am ashamed of what happened. Yes, I agreed I slept with her when she was 13 and that was because their mother abandoned me .

But I can swear by any thing that I was not responsible for her pregnancy. Until her death, she had a boy friend simply called Lucky, that boy is responsible for her pregnancy.

When she told me that she was pregnant I asked who was responsible and she confessed to me that it was the same Lucky.

But since then, Lucky stopped seeing her. Even when she put to bed, I invited him but he refused to show up. I did the same when she died. It was like I was in a world of my own.

When the matter of my affair with her was reported in my village, I could not go because I did not have enough money to travel. I slept with her when she was 13 and even that period I did not find it difficult penetrating her which means she had been doing it. On that day, I took three bottles of beer and two shots of local gin called Ogogoro. So when I came in, I just removed my clothes and started f—king her. Adaobi was one of my six children until her death.

I think the police is angry because I wanted to secretly bury her not because I slept with her. All I am

pleading for is forgiveness; I am sorry.”

What the law says The offence of incest has no clear cut definition in the Nigerian laws but falls under offences against morality in the Criminal Code Act Cap 77, Laws of the federation of Nigeria 1990. Section 214 of the criminal coded defines offences against morality as: (a) Any person who has canal knowledge of any person against the order of nation, or (b) has canal knowledge of animal, or (c) permits a male person to have canal knowledge of him or her against the order of nature; is guilty of a felony and is liable to imprisonment for fourteen years.

T

he term “against order of nature” therefore, refers to either a father having sex with his daughter, a mother have sex with her son, a sister having sex with her brother, etc etc provided this is done to the extent of incongruity to the order of nature.

In the case of Mr. Peter Okeke apart from being guilty of having sex against order of nature, may also be charged with rape, which under section 3 5 8 carries l i f e imprisonment with or without canning; because he was the first t o forcefully h a v e canal knowledge of her daughter while at age 13.

Again, he may also be charged under section 329 of t h e criminal c o d e w i t h concealment of birth a n d secret disposition of the d e a d body as h e

admitted burying the dead baby secretly all alone; which made him guilty of misdemeanor and liable to two years imprisonment..

What psychologist says A clinical psychologist with t h e Psychiatric hospital, Yaba Lagos, Maymunah Kadiri says causes of incest is multifactorial. According to her, “First the mental and psychological state of the person would have to be examined to determine whether he showed any remorse for what he did. Is he an alcoholic, is he into substance use?, did he show any sign that what he did is spiritually and culturally wrong? If he is an alcoholic, what was the degree of alcohol consumed and what was his intent? that is; having ruled out any underlining medical condition. We shall also consider whether he suffers from personality disorder, where is his wife? And then we also consider psycho-social problem If his economic status is not good enough, he might find solace in alcohol and of course, do things against the social order. So like I said, incest could occur as a result of multi-factorial problems.”

Vanguard, MOND AY, MA Y 7, 2012 — 55 MONDA MAY

NAFDAC impounds fake sugar R

STORIES BY EVELYN USMAN

ECENTLY, the National Agency for Food and Drug Administration and Control, NAFDAC, alerted Nigerians on the proliferation of fake St Louis sugar in the markets. The sugar which was said to have been smuggled from Cotonou had been consumed by a number of unsuspecting Nigerians without the slightest knowledge of the hazard it represents.

Following this startling discovery, the agency intensified its surveillance and with the collaboration of Milan Nigeria company which has the sole distributorship of the product in Nigeria, a raid was carried on some markets where the sugar was to be sold.

The raids carried out in Igando, Mushin, Ikotun, Ketu, Ikorodu, and Boundary markets led to the arrests of several traders with the cartons of the fake sugar. The affected shops were conse-

the product from circulation.

And from the number of markets we have raided so far, the end is in sight”, assuring that the agency would spread its dragnet to other states with a view to ensuring that the fake sugar was flushed out of Nigerian markets, considering the side effects on consumers health.

For easy identification of NAFDAC certified St Louis sugar, he advised Nigerians to always look out for the eye logo which represents the presence of Vitamin A and NAFDAC number. He added that “the original St Louis sugar is called cube sugar while the fake has the inscription pure sugar on it. The fake one has no vitamin A on it.

Consumers are therefore advised to look out for this traits and also report any shop which sells the fake to us because the inherent danger is that when it is not certified it means it is not from the reg-

,

The raids carried out in Igando, Mushin, Ikotun, Ketu, Ikorodu, and Boundary markets led to the arrests of several traders with cartons of the fake sugar

quently sealed, an action the agency said was to serve as deterrent to others.

The agency’s surveillance team, during the raids, discovered that the fake brand of sugar was smuggled into the country in the guise of the popular brand of sugar. A member of the team who spoke in anonymously hinted that the agency had been doing all within its might to check activities of the importers, lamenting, however, that smugglers kept taking the products to other markets in the country.

The raid according to him, “is the end product of an intensive surveillance of the market and for now we are concerned on how to mop up

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,

istered company.

That is why we keep urging consumers to look for goods that are NAFDAC certified because it means we have tested the products and have found it worthy of consumption for users and the same applies to St. Louis Sugar which has been fortified and certified by NAFDAC. Nigerians should desist from buying any St. Louis sugar from Cotonou that is not certified by

*Some of the seized cartons of the fake sugar NAFDAC because the Cotonou imported sugar is dangerous to health and has a side effect upon human consumption. NAFDAC is also trailing the smugglers from Cotonou for prosecution”.

The Chief Security Officer, Milan Nigeria, Mr. Fidelis

Agholor, hinted that the raid was carried out following a tip- off, assuring that it would be a continuous process until the distributors got the message .

He disclosed that the first raid was carried out in Okeiran and Ebute-Ero markets as

a result of which the distributors shifted base to other markets. The arrested traders as gathered, would be charged to court and the seized goods destroyed.

56 — V anguard, MOND AY, MA Y 7, 2012 Vanguard, MONDA MAY

Syria holds parliamentary polls today I

N Syria, elections for the 250 member parliament will be held today.

Syrian Government says today’s vote will be a sign of its willingness to carry out democratic reforms. The main opposition Syrian national Council has called upon the Syrians to boycott the elections.

They have dismissed the elections as yet another attempt by President Bashar Assad to hold on to power.

Syria goes to polls on Monday at a time when a fragile ceasefire is yet to hold ground in the country. This will be the first multi party elections in the country after the new constitution ended

the monopoly of Baath party and allowed the political parties to contest elections. Nine parties have been created, and seven have candidates vying for a parliamentary seat. Pro-regime parties led by the Baath Party are represented the National

Russian police, protesters clash at anti-Putin rally

R

USSIAN riot police clashed with demonstrators Sunday as an estimated 20,000 people protested on the eve of Vladimir Putin’s inauguration for a third presidential

Greek austerity parties’slump in poll’

E

XIT polls show Greece’s two main austerity parties have suffered major losses in parliamentary elections.

The surveys, reported minutes after polls closed Sunday, showed the conservative New Democracy party — the leading vote- getter — carrying 17 to 20 percent of the vote, down from 33.5 percent in 2009 polls. The polls showed the socialist PASOK party carrying between 14 and 17 percent.

Both parties have said they will press the European Union, the International Monetary Fund and the European Central Bank to ease austerity requirements imposed on Athens’ debtridden government in

return for a more than $300 billion bailout. But many Greeks blame the parties for leading the nation in its debt crisis with widespread mismanagement.

N official speaking from Niger, a top United Nations official on Sunday appealed to the international community to provide the resources needed to help millions in crisis in the Sahel region of West Africa, warning that the situation is critical and there is no time to lose.

“This is one that the international community cannot and must not ignore,” said the Executive Director of the World Food Programme

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term.

Helmeted officers beat protesters with batons and hauled away dozens after skirmishes broke out between the two sides near a bridge leading across the Moscow river to the Kremlin.

Those detained include three key leaders in the protest movement against Putin - Alexei Navalny, Boris Nemtsov and Sergei Udaltsov. Officials say at least four officers were injured.

Putin has been Russia’s prime minister since relinquishing the presidency in 2008.

Netanyahu calls for polls in Israel

I

SRAELI Prime Minister Benjamin Netanyahu has called for an early general election in four months’ time.

The vote is expected to take place in September, a year before he is required by law to seek a new mandate.

Mr Netanyahu leads a centre-right coalition which includes his own

UN wants urgent funds for Sahel region

U

Progressive Front.

A total of 7,195 candidates are in the fray for 250 seats. In Homs province, the country’s industrial hub and home to 2.3 million people, more than 450 candidates are vying for 23 seats.

(WFP), Ertharin Cousin, in a telephone interview from Niger ’s capital, Niamey.

Likud, and the Labour party of Ehud Barak.

Mr Netanyahu has been prime minister since 2009. Opinion polls suggest that he is by some distance the most popular politician in Israel.

He told a meeting of party workers in Tel Aviv that he didn’t want “a year and a half of political instability accompanied by blackmail and populism”.

After listing the accomplishments of his government, he said he would like to lead a broadly based coalition after the election.

I’m ‘absolutely comfortable’ with gay marriage — US VP

U

S Vice President Joe Biden on Sunday said that’s he’s “absolutely comfortable” with married same-sex couples being granted the same rights as heterosexual pairs.

“I am absolutely comfortable with the fact

that men marrying men, women marrying women, and heterosexual men and women marrying another are entitled to the same exact rights, all the civil rights, all the civil liberties,” he told NBC’s David Gregory on “Meet the Press.”

Vanguard, MONDAY, MAY 7, 2012—57

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58 — V anguard, MOND AY, MA Y 7, 2012 Vanguard, MONDA MAY

French Polls: Hollande floors Sarkozy F

R A N Ç O I S Hollande has won power in France, turning the tide on a rightwards and xenophobic lurch in European politics and vowing to transform Europe’s handling of the economic crisis by fighting back against German-led austerity measures.

The 57-year-old rural MP and self-styled Mr Normal, a moderate social-democrat from the centre of the Socialist party, is France’s first leftwing president in almost 20 years. Projections from early counts, released by French TV, put his score at 51.90%.

His emphatic victory is a boost to the left in a continent that has gradually swung right since the economic crisis broke four years ago.

Nicolas Sarkozy, defeated after one term in

office, became the 11th European leader to be swept from power since the economic crisis in 2008. But the defeat of the most unpopular French president ever to run for re-election was not simply the result of the global financial crisis or eurozone debt turmoil. It was also down to the intense public dislike of the man seen as “President of the Rich” who had swept to victory

in 2007 with a huge mandate to change France.

The majority of French people felt he had failed to deliver his promises, and he was criticised for his ostentation display of wealth, favouring the rich and leaving behind him over 2.8 million unemployed. Political analysts said antiSarkozyism had become a cultural phenomenon in France.

•Hollande casting his vote yesterday

Francois Hollande, next French president

F

RANCOIS Hollande, France’s next president according to early estimates - is an experienced political organiser who has, nonetheless, never held national government office.

He is regarded by many as an affable moderate whose quiet some might say dull manner contrasts sharply with the intensity and glamour of conservative President Nicolas Sarkozy whom he faced in the second-round runoff on 6 May. However, the modest image of this man who until recently preferred to travel to work on a scooter conceals, his supporters would argue, a steely determination to lead his country.

To take the party ticket in 2012, he had to prevail in a gruelling primary election which put both his political and private life to the test.

One of the more dramatic moments of that contest came when fellow contender Segolene Royal - his estranged partner of nearly three decades and mother of his four children - publicly endorsed his bid.

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Party career Mr Hollande was born the son of a doctor on 12 August 1954 in the northwestern city of Rouen.

He attended the ENA administration school, where he met Ms Royal, and another elite institution, Sciences Po. Having been active in student politics, he joined the Socialist party in 1979 and played a junior role as an economic adviser in the Mitterrand presidency.

An MP since 1988, he represents a constituency in the south central region of Correze.

He succeeded Lionel Jospin as party leader in 1997, a post he retained for more than a decade.

In 2008, amid acrimony over the defeat of Ms Royal by Mr Sarkozy at the previous year ’s presidential election, he stood down.

It later emerged he had been having an affair with journalist Valerie Trierweiler. He has been with Ms Trierweiler, a political reporter with current affairs magazine Paris Match, ever since.

The friction between Mr Hollande and Ms Royal long embarrassed the party but in May 2011 a scandal of a different magnitude threatened to

engulf it, when new favourite Dominique Strauss-Kahn was arrested in New York on attempted rape charges, later dropped.

In the ensuing months, many began to see Mr Hollande as the best available bet for 2012.

Statesman?

Some proof of his wider appeal is that he enjoys the unlikely honour of having been praised by former conservative President Jacques Chirac.

Mr Chirac described him in his memoirs as a “true statesman” capable of crossing party lines.

The remark was perceived by some as a slight on Mr Sarkozy, whom Mr Chirac openly mocked in his book.

However, Mr Hollande is generally viewed as a moderate. “I don’t want a hard left,” he said during a debate with Martine Aubry, his main rival for the socialist presidential nomination.

“We’re just coming out of five years of a brutal presidency. Should we have a divisive candidacy? I don’t want that. We need a solid left.”

Ms Aubry is being tipped for the role of prime minister as he wins.

Vanguard, MONDAY, MAY 7, 2012—59

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60 — Vanguard, MONDAY, MAY 7, 2012

T

……Now that the leagues are ending

,

HE story of Stephen Keshi and the Super Ea gles can be better told next month. EARLY NEXT MONTH. It is the story of non qualification for the Nations Cup and the sacking of Samson Siasia. It is the story of the over reliance on foreign based stars for our national teams and their dwindling fortunes in recent times.

The employment of Stephen Keshi was therefore to address these anomalies, including the building of a strong domestic squad that will bridge and attempt to address the problems caused by the foreign armada.

So far, there is a consensus that the Keshi experiment that has received the full backing of the Nigerian Football Federation is worth our while. This was evidenced by the showing put up against the Indomitable Pharaohs of Egypt in Dubai.

Before then, we had a Nations Cup qualifier against Rwanda and Coach Keshi went for the expected mix, inviting some of the foreign based players. Either by omission or commission, he decided to give more starting places to the foreign players and the result was not a favourable one.

While a lot of Nigerians called for the head of the foreign based stars, some called for caution, arguing and rightly too that the boys from Europe did not benefit the proper orientation going into that match. That they did not have enough time to train as a team with their locally based colleagues and that even jet lag militated against them.

Since then, the Keshi team has evolved ( The Egypt friendly ) prompting a lot of people to also suggest that we may not even need the foreign based any more, and that if we do, not in an appreciable number.

I belong to the latter, that we still need some of our players plying their wares abroad, but only quality please.

How can we invite players for the Super Eagles today without a Victor Moses in the line up? Can we afford to call the buff of Vincent Enyeama, Oduamadi , Uche brothers and Ahmed Musa?

My argument is simple, that we need a good mix

So far, there is a consensus that the Keshi experiment that has received the full backing of the NFF is worth our while

,

and now that the European leagues are ending ( Some have ended ) this is the time to bring everyone we are interested in home and start working on them.

Next month we have two crucial world cup qualifiers and if for one reason or the other we could not include these players in the Peru trip, then we must look for a way to integrate them BEFORE the world cup matches that will be held FIRST WEEK IN JUNE. It is for this same reason that I did write last week that now that we are busy searching for natural grass for our matches, has Keshi told us the percentage of foreign based players that will likely be in the starting line up? I say this because majority of our domestic players play on artificial turf and

we may be arming the enemy if we provide them with a condusive playing surface. ( Natural grass ) Let me also repeat what I said here last week, that we should not politicize the choice of venue, lest it comes back to haunt us like Kano did. In choosing a venue we should look beyond invitations by the chief executives of the states.

In Abeokuta last Saturday, I showed Barrister Green ( Technical Committee Chairman of the NFF ) proof that FIFA has already designated match officials, venues and time for the matches. They are still waiting for Nigeria. Pray we do not choose a venue that does not meet the standards of CAF, not to talk of FIFA as rejection in the last minute could spell doom for us. Emotions should be jettisoned.

The secretary general of the NFF just back from a FIFA workshop in Cairo is in a better position to appreciate the dos and donts as regards match venue, from functional dressing rooms to water, security installations ( Two metre cordon as secondary crowd barrier outside the stadium ) etc.

The sooner we put this issue to rest, the better.

Adieu Goal King I join hundreds of ball followers world wide in mourning the death of arguably Nigeria’s greatest footballer, using goals as a barometer to measure greatness.

Before his death, Rashidi Yekini disappeared from our radar giving room to speculations as to the problem with him. Nigerians waited and prayed as journalist failed to unravel the mystery surrounding his hermit like disposition.

Today, it has taken his mother to tell us what the problem of his son was. A sad story.

Thanks Yekini, we will forever cherish fond memories of your sojourn on the green fields of world football, advantage Nigeria.

Fare thee well.

See you next week.

Five most memorable moments of Yekini L

IKE a colossus, Rashidi Yekini bestrode the football world with an aura that many of his contemporaries wished they could attain.

Goal.com presents some of the most memorable highlights in the career of Nigerian legend who passed away in unsung circumstances on May 4.

5 Portuguese top scorer award Being among the early batch of Nigerian players to make the transition to Europe, Yekini found a home at Vitoria Setubal (club logo pictured), a mid-level Portuguese Primeira Liga side, where he played for four years, 19901994. In his third season, Yekini became the fourth African since Eusebio, Angolan Vata and compatriot Richard Owubokiri to win the award for highest goals scored in a Portuguese top flight season.

With 21 goals scored in the 1993-94 season for

lowly Setubal, Yekini took home the prestigious Bola de Prata trophy given out by O Bola newspaper since 1934. It was the first highest scorer title for Setubal since Francisco Rodrigues did the double between 1943 and 45.

4 Enduring national goals record Yekini played with such great focus that he scored 37 international goals for the Super Eagles in just 58 appearances. He got an average of 0.64 goals per game. Since his last game for the Eagles in 1998, that record has yet to be breached.

Yekini struck off Odegbami’s record by the time he won his 37th international cap with a hat trick against Ethiopia in a 6-0 thumping at the National Stadium, Lagos on July 27, 1993.

He would go on to raise the bar a notch higher with 37 goals before he played his last for the Nigerian team in 1998.

Yekini was never

without his talismanic goal scoring instincts 3 African player of the year 1993 Yekini set a precedent for Nigerian football when he won the Caf African footballer of the year award in 1993. He became the first Nigerian to win the title. It was a feat achieved playing in Portugal, away from the French league that had dominated the awards for most of the preceding years.

2. Iconic World Cup goal celebration One of the most enduring goal celebrations ever seen at the World Cup happened on the night of June 21, 1994 when the big striker scored what was Nigeria’s first ever goal at the World Cup finals against Bulgaria. The Super Eagles had qualified for the Mundial, their first appearance on the big stage, courtesy of goals from Yekini. He scored eight goals in the qualification series to ensure Nigeria’s flag was fi-

•Yekini nally flown at USA ’94, the biggest World Cup at the time.

As if fate was rewarding him for all of his previous efforts, he latched on to a cross from Finidi George to score what looked like an easy goal by his own standards. As it dawned on him that he had scored the first ever goal for Nigeria at the World Cup, Yekini ran into the goal post, grabbed the net, and

shook it endlessly while screaming to the high heavens.

1 African champions in 1994 Perhaps the greatest ever achievement of Rashidi Yekini’s career was when he won the Africa Cup of Nations title with Nigeria in 1994.

Playing in Tunisia under Clemens Westerhof at his fifth Afcon tournament, Yekini scored

five goals to win the top scorer’s award and also help propel the team to victory. It must be noted that Yekini won the Afcon title as a reigning African player of the year. No reigning player of the year has won the Afcon trophy since he did it in ’94, what with the pressure that comes with the spotlight. It is a burden that I have always secretly referred to as the Yekini syndrome.

Vanguard, MONDAY, MAY 7, 2012—61

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62 — Vanguard, MONDAY, MAY 7, 2012

Day Yekini refused to play against Eagles — Kalu E

ULOGIES continue to trail legendary Rashidi Yekini even as former Abia state governor Dr. Orji Uzor Kalu Weekend prayed the Federal government to honour him as a star who once refused to play against the Eagles in a 1994 friendly with Portuguese side Vitoria Setubal.

According to Kalu,”It was a pre-USA ’94 World Cup friendly. Yekini’s side listed him against the national team.He backed out.I remember his exact words.’It is possible at club level,but I would not do it against Eagles.I will not try it.I’d prefer to watch instead of playing against my country’.That is enough to honour this hero.

Of course,Yekini had tormented Iwuanyanwu Nationale in the 1990 CAF Champions’ Cup against Africa Sports of Cote D’ivoire.The game was moved from Abidjan to Seguela and club President Simplice Zinsou promised the Nigerian the equivalent of Twenty Four Thousand Naira[N24,000] for every goal scored against his countrymen.

“Yekini struck in the 18th minute,it took Ifeanyi Aghenu’s last minute effort for the Naze Boys to draw level.In the Benin second leg,Yekini did it again,in the 18th to cancel Thompson Oliha’s goal.Nationale were lucky to win 3-2,”Kalu disclosed.

The ex-governor could not come to terms with talks about the man’s mental state.However,he pleaded with Sports minister Bolaji Abdullahi to use more than ‘Kwara con-

nection’ in bringing President Goodluck Jonathan to recognise Yekini even in death.

“As a footballer,Yekini was a party freak.He said it himself,loved rice with

friend Ade took him to coach Muniru Sule of UNTL Kaduna.In 1984, he joined Shooting Stars alongside Sola Akinsola,Daniel Abdulahi,Kayode Aina and Olu Kalejaye.Yekini also played for Abiola Babes.

to him and he never returned home.

“I heard that Yekini died on Friday and I did not believe it. I told myself it could only be an-

other Yekini until Saturday morning when I read the newspapers that I really believed,” said Michael.

UNDYING SPIRIT . . . Former Super Eagles goal poacher Rasheed Yekini tries to outwit Zambian defence during the 1994 African Cup of nation in Tunisia.

Yekini

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Ring Road Ibadan against his will last month.

“I have confirmed beyond any doubt that Yekini was forcefully taken away from his house, he was hand and leg chained and eventually he died,” said Mohammed.

“He has resisted several attempts to take him away and on one such occasion in 2010 the police commissioner in Oyo State Adisa Gbolatan warned that no one should try to take him away by force because Yekini goes beyond a family issue as he is a

Liverpool coach for Greensprings Kanu Football camp

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fried plantains,played basketball,dotted on his siblings Akeem and Sumaila,was a good swimmer and after marriage,was fond of his wife Patience whom he renamed Maryam,”Kalu

added.

Born to Yekini and Sikiratu Balogun, October 23 1964,young Rashidi helped his glazier dad even as pupil of ABS school Kaduna.He would later train as a car painter.Active soccer began in 1981 when his

HE Head coach of the Under-16 team of Liver pool Football Club of England, Gary Lewis and other tacticians have been confirmed for the first annual Greensprings Kanu Football Camp scheduled for July this year. The camp is the brainchild of Greensprings School, Lagos in collaboration with Super Eagles former captain, Nwankwo Kanu with support from the West Africa School Sports Union (WASSU).

Lewis, who works full time at Liverpool, will be joined by compatriot, Nigel Deeley, England Under-17 coach and a UEFA Grade A Licensed coach will be part of the coaching crew expected at the camp.

national hero.

“The commissioner warned then that should any mental examination of the player be conducted, it has to be in the presence of the police as well as government representatives.”

Mohammed added: “I’m ever willing to cooperate with the authorities to really know the circumstances that led to his death. At least, I owe Yekini this because besides being my client, he was my brother and friend.”

Politician and businessman Kunle Michael, who lives close to the departed Eagles star, said the player was forcefully taken away on Easter Day, April 8, by some people very close

ANCHESTER City are on the verge of Premier League glory after Yaya Toure’s second-half brace gave them a 2-0 win at Newcastle on Sunday.

The Ivory Coast international struck twice in the final 20 minutes of a pulsating contest to secure three

BY ANAYO OKOLI. Umuahia

THE Governor of Abia State, Chief Theodore Orji has condoled with the family of ace footballer late Rashidi Yekini over the death of the prolific footballer.

Rashidi Yekini died last Friday after suffering from protracted depression and was buried Saturday in his home Ira in Kwara state.

Governor Orji in condolence message described the footballer ’s death as “shocking”.

Orji who spoke through his Chief Press Secretary, Ugochukwu Emezue, noted that late Rashidi Yekini was one of the finest footballers ever produced by this country.

According to him Nigeria will never have another Yekini “ whose dexterity on the field of play and the ability to score goals from impossible angles remained an enigma”.

Going down memory lane, Governor Orji recalled with nostalgia how Rashidi Yekini broke the world record by being the first Nigerian to score in the World Cup for the Super Eagles in their maiden outing at the world football stage against Bulgaria in the United State of America in 1994.

Governor Orji said that the 1993 African Footballer of the Year would be remembered for his dedication, patriotism and humility in his playing days.

Toro mourns Yekini •Late Yekini

Yaya's brace puts City on brink

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Gov. Orji condoles with Rashidi Yekini family

precious points and send City into next Sunday’s final-day clash at home to QPR in pole position to claim their first title in 44 years.

City’s last triumph in 1968 came courtesy of a 43 win at St James’ Park, and Sunday’s victory could prove almost as pivotal.

However, it remained in doubt right until the final stages as the Magpies fought to keep alive their dreams of Champions League qualification.

It was not until Toure blasted a 70th-minute shot past goalkeeper Tim Krul that City got their noses in front.

F

ORMER Secretary General of the Nigeria Football Association, Alhaji Ahmed Sani Toro has condoled the family of late Nigeria football icon, Rashidi Yekini who passed on Friday, May 4.

In a terse condolence note Toro said, “I wish to,on behalf of myself and family, condole with the family and the entire football family on the death of Rashidi Yekini, ex-international.”

Vanguard, MONDAY, MAY 7, 2012—63

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VANGUARD, MONDAY, MAY 7, 2012

Vitoria Setubal to honour Yekini

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NPAN condemns attacks on media houses

ASHIDI Yekini’s Portuguese club Vitoria Setubal will pay their last respect to the fallen star in their final game against Benfica.

The 48-year-old Yekini died Friday in Nigeria.

Yekini enjoyed his best spell at a European club

at Vitoria Setubal. He scored 90 goals in 108 appearances for the modest Portuguese club between 1990 and 1994.

According to the former Nigeria youth international Terna Suswam, who now features for Vitoria Setubal, the club

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HE Executive Committee of the Newspaper Proprietors Association of Nigeria has condemned in the strongest terms, the attacks on ThisDay newspapers in Abuja; a n d T h i s D a y, S u n and The Moment newspapers in Kadun a o n T h u r s d a y, April 26, 2012 by a group often referred to as Boko Haram and its threat of more attacks on other media houses.

In a communique issued at the end of its emergency meeting in Abuja on Saturday, May 5, 2012 which deliberated on the bombing of the newspaper houses,

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Premier League

From left: Publisher Vanguard Newspaper,Mr. Sam Amuka; General Secretary, Newspapers Proprietors Association of Nigeria, NPAN, Mrs. Comfort Obi; former Presiden, NPAN, Alhaji Ismaila Isa; Chairman /Editor in Chief This Day Newspapers, Mr. Nduka Obaigbena; Chairman, Daily Trust Newspaper, Mr. Kabir Yusuf; during the visit of members of NPAN to the bombed This Day Office in Abuja,Saturday.

Yekini’s death hits sour note ••Lawyer cries foul

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ASHIDI Yekini’s lawyer and neighTODAY'S

plan to honour Yekini by wearing black arm bands and observing a minute silence.

“The players wish to honour Yekini by sporting black arm bands and observing a minute’s silence in our next game against Benfica next week Sunday,” said Suswam.

“This is also our last match of the season but the management will have to approve it.”

“Yekini was a legend at Setubal and the news of his death has really shocked everyone here.

All the papers here reported it and peopleter he was allegedly taken away from his house at Oni and Sons around

bours have asked for a probe into the circumstances leading to the death of

PUZZLES

the ex-World Cup star.

Nigeria all-time leading scorer Yekini died on Friday and he was buried the following day in his home FRIDAY'S

ANSWERS

town of Iraa in Kwara State.

However, Yekini’s lawyer Jubril Mohammed as well as several of the player’s neighbours told

Newcastle 0 Man City 2 Aston Villa 1 Tottenham 1 Bolton 2 West Brom 2 Fulham 2 Sunderland 1 QPR. 1 Stoke 0 Wolves 0 Everton 0 Man Utd 2 Swansea 0

Italian Serie A

MTNFootball.com that there is more than meets the eye as regards the shock demise of Yekini af Continues on page 62

Siena Atalanta Bologna Novara Palermo Udinese

0 0 2 3 4 2

Parma Lazio Napoli Cesena Chievo Genoa

2 2 0 0 4 0

QUICK CROSSWORD

ACROSS 1 Handwriting (6) 5 Blackleg (5) 8 Flashlight (5) 9 Message (3) 10 Animal (4) 11 Ceremony (4) 12 Frequency (5) 13 Unjust (6) 16 Expensive (4) 18 Discharge (4) 20 Fixed (3) 22 Obscure (3) 23 Immerse (3) 24 Broad (4) 25 Paradise (4) 28 Part (6) 30 Undress (5) 33 Deadened (4) 34 Hill (3) 35 Crawl (5) 36 Observe (4) 37 Scoffed (6)

DOWN 1 Cover (6) 2 Snubbed (8) 3 Pale (6) 4 Ratified (9) 5 Twisted (7) 6 Feature (4) 7 Ale (4) 8 Also (3) 14 Re-interpreted (9) 15 Tear (3) 17 Help (3) 19 Dispense (8) 20 Mouthful (3) 21 Consistency (7) 26 Chew (6) 27 Dreaded (6) 29 Scheme (4) 30 Denomination (4) 31 Whelp (3)

FRIDAY'S SOLUTIONS ACROSS: 1, Robust 5, Studio 9, Haste 10, Sandal 11, Elicit 12, Model 14, Ewer 17, Nap 18, Pole 20, Rider 22, Beret 23, Collier 24, Scout 26, Diced 29, Tear 30, Pet 32, Lore 33, Cider 35, Triple 36, Nudist 37, Acted 38, Exhume 39, Tended.

How to Play Sudoku

THE VIGILANTE

DOWN: 1, Roster 2, Banned 3, Sham 4, Talon 5, Steep 6, Tell 7, Doctor 8, Outlet 13, Dallied 15, Wince 16, Recur 18, Peril 19, Lever 21, Rot 22, Bed 24, Statue 25, Oafish 27, Copied 28, Dented 30, Piece 31, Tenet 33, Clam 34, Rude

e-mail: rowolove@yahoo.co.uk

Place a number (1-9) in each blank cell. (No line can have two of the same number).

Each row (nine lines from left to right), column, (also nine lines from top to bottom) and 3 X 3 block within a bold block (nine blocks) contains number from 1 through 9. This means that no number can appear twice in any block, column or row.

No mathematics is involved – no adding, subtraction, division or multiplication, just plain logic and your imagination.

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