THE GUARDIAN
Post-SIM registration SMS fraud, poor GSM services mount
Wednesday, 16 November 2011 00:00 By Osigbesan Sultan Luqman and Adeyemi Adepetun News - National
We are working on challenges, say operators, NCC
AGAINST the robust opposition to it, hinged on the fact that the service providers had then taken up the challenge of registering all active Subscriber Identification Module (SIM), the last National Assembly granted N6 billion to the Nigerian Communications Commission (NCC) to register the nation’s 90 million (approximately 70 million when the SIM registration was launched) subscribers on the Global System of Mobile Communications networks in the country.
Appearing before the defunct House Committee on Communications in Abuja in July last year, Executive Commissioner, NCC, Bashir Gwandu, argued, quite convincingly, that the lack of subscriber identification database had far-reaching security implications and was being exploited by unscrupulous individuals to perpetrate crime and related illegal activities in the country.
But more than a year after and despite the capture of millions of subscribers’ personal information, including photographs and fingerprints, the much-touted benefits in terms of curtailing crimes committed through the use of the GSM networks appear far off in Nigeria.
Also, while the service providers continue to get more subscribers on their networks, stakeholders have expressed concern that the GSM firms pursue this end aggressively at the expense of quality services. Quite tellingly, it is no use calling the well-known Customer Care lines of some of these service providers as one would either be cut off after a short pre-recorded voicemail or treated to a repeated barrage of the networks’ audio advertisements and promotional jingles.
While there has been astronomical growth in active subscribers base on all the networks, operators are yet to match the growth in subscribers with adequate and timely response to customers’ complaints. According to some stakeholders in the sector, the reason for the lull in this area of customer service is that there is still a wide margin between the ratio of total subscribers in the country and the facilities put in place by the operators to solve speedily, customer complaints.
More worryingly is the sustained, even growing, use of the major networks to co-ordinate and execute crimes like kidnapping, advance fee fraud (419) and, of late, terrorism in the country. This, according to telecoms experts, ought not to be if providers have simply deactivated all unregistered SIMs in the country as the NCC had warned they would do post-SIM registration and harmonisation, as it could be conjectured that the lines being so abused are unregistered.
Investigations by The Guardian have also revealed that some of the service providers, for reasons best known to them, appear unco-operative in helping to solve crimes being committed using their networks by unmasking criminal elements through the captured subscribers’ data.
For instance, a fraudulent SMS message informing subscribers that they have won N2 million “in the on-going recharge and win promotion” is currently in circulation on the Airtel network, which asks recipients to call the service provider’s correct Customer Line, 111 or the phone number 08022008705. Recipients who called the second number are told to send recharge cards, their bank details or come to Wuse 2, Abuja, to redeem the prize.
The Guardian called the number and a husky, sleepy male voice confirmed that the promo was genuine. The Guardian also alerted an Airtel Customer Care Agent, who identified himself as Mojeed, to the obvious fraud, who proffered the stock response that subscribers should disregard such fraudulent SMS as Airtel does not inform winners of its promos “that way.” Mojeed claimed to have reported the alert to his superiors for prompt action but was evasive about using the SIMs database to track down the fraudster and promised to get back to The Guardian. Three weeks later, he has not.
In a recessed economy as ours, some are won’t to take the bait. Mr. Tajudeen Adele, an Airtel subscriber based in Lagos, said he got a text message that he had won N2 million in one of the network’s promos and that he should send N4,000 recharge cards so that it could be processed.
“Of course, I complied because I had actually participated in one of the promos. I played along and waited to get confirmation for what I won and nothing was heard since then. I called Airtel’s customer care line and no response. They were only singing hymns to my ear. I did that for close to a week and I got frustrated and eventually gave up the chase.”
Apparently aware of the fraudulent promo win message, Etisalat sent an SMS alerting its subscribers to it and dissociating the service provider from the scam.
Besides frequent cases of drop calls, unclear reception and wrong connections across networks, subscribers are also of late being “harassed” with unsolicited calls from strange numbers, which they lose their prepaid airtime to when they pick up the call. On Glo Mobile, the strange number is 4040 while on Airtel they are 547 or 5471030345 and 5473336467.
When The Guardian called Airtel’s Customer Service line to complain, a female official claimed the subscriber must have signed to the service, which is untrue in this case, and directed that he should de-subscribe by texting to a particular charge-free number, which also turned out to be a lie as N100 was promptly deducted from the subscriber’s airtime!
Eleven calls placed to the Glo Mobile Customer Care line over three weeks, with one of them lasting 30 minutes, were only either cut off after less than two minutes or went on endlessly with promo and advertising jingles playing on cue one after the other.
A Lagos-based Glo Mobile subscriber who bought the network’s N500 recharge card several weeks back and sent same to his mother in the village, could not also get Glo Customer Care till date to confirm the claim by a neighbour of his mother that “the card has been used by another subscriber.” The Glo card number in this case is 46873 09389 89097; serial number, 250614617512501; and batch number 1468071143216125.
A senior telecoms expert, who does not want his name in print and a subscriber of both MTN and Etisalat networks also claimed to have experienced a similar problem “without any response till today.”
Reacting, a senior official of Airtel, who prefers anonymity, disclosed that the network is awash complaints over fraudulent SMS on the network.
He added: “We have said times without number that if anybody wins any of our promos, we don’t send SMS to such people, rather we call them. There is a particular number we use in calling, which is 080219000000, anything outside this, is not from us.
“At different Telecoms Consumer Parliaments, we have stated that we don’t send text, but call winners with that number.
“On the issue of non-response on customer care line, I think that is not peculiar to us alone, but officially, I will say, it could have been network problem, because as I speak to you we have upgraded that facility seriously and we are still investing in that area.”
According to him, by the time the harmonisation of SIM is completed by the NCC, “I believe this country would be able to tackle the various security threats threatening the existence of Nigeria presently.”
General Manager, Corporate Affairs, MTN, Funmilayo Omogbenigun, said: “With respect to the issue of fraudulent text messages, MTN has continuously sensitised its subscribers through various media platforms, to be wary of texts or e-mails that request money or recharge cards in order to claim prizes purportedly won in promos or reward schemes.
“As a rule, MTN does not send text messages to winners of its promos/rewards neither does it demand consideration of any kind as a condition for claiming prizes. MTN contacts all winners of MTN promos or reward schemes via a voice call through our dedicated 180 customer service line. In addition, MTN routinely publishes the names of winners on the company’s corporate website and winners are usually invited to presentation ceremonies with the full complement of the media present, at accredited MTN offices or venues.”
She stressed that ”the registration of SIMs serves a number of useful purposes, including a deterrent to certain levels of criminal activity.”
In his reaction, NCC’s Head of Media and Spokesman, Mr. Rueben Muoka, said the commission had times without number told subscribers to desist from entertaining text messages they were aware they never participated in.
Muoka said: “It is difficult to stop such fraud because it can come in different ways beyond the networks, including Skype and others due to the hi-tech nature of the industry. This challenge is not limited to Nigeria. Subscribers should call their networks to confirm to avoid falling victims. Where the operator could not be reached, the NCC’s customer complaints lines, which are 08000myconsumer or 08000callncc, are toll free lines that subscribers can get faster response from. This, the commission had stressed at different telecoms consumer parliaments we have had.”
The NCC spokesman assured that the collected SIM data would be deployed to tackle current and future security challenges in the country.
According to him, “the harmonisation period presently had no end time in sight. This is necessary to ensure also that we register all eligible subscribers and we have reiterated it times without number that the benefits of this SIM registration far-outweigh the disadvantages. Aside using the SIM registration data to tackle the present security challenges in the country, it would also give us a platform to know the actual lines we have in this country and this, of course, will aid investments.
“The harmonisation period involves the cleanup of the data and proper documentation and anybody who failed to register would definitely be disconnected. Who knows, such a person might be planning evil, hence he refused to register his SIM. However, for now, nobody can give a definite date to end the harmonisation period. At the beginning, we have told the operators that they must send their data to us and presently that is what this harmonisation period is all about. There won’t be duplication of data; I can assure you that because we have mapped out strategies for a codified result.”
For added security measures, Gwandu recently disclosed that the NCC “plans to issue subsidy to telecommunications operators to install equipment on every mast and tower that could be used for triangulating between sites in order to identify real-geographical location of both GPS and None GPS-enabled mobile handsets.”
Gwandu stated that in addition to the triangulation project, all GPS-enabled handsets could also be tracked by low earth orbit satellites. He further stated that there are other equipment that could be deployed to tract and identify the locations of handsets being used to solicit for ransom.
According to him, “once ownership of numbers can be identified, handsets can be tracked, and their geographical location becomes identifiable, then any call made to solicit for ransom, for instance, will help to locate the kidnappers.”
In addition to this, he said, the NCC has initiated “a project that will block stolen handsets once they are reported as being stolen. The project will also be helpful in stopping criminals from using snatched handsets in perpetrating such act.”
In a recent interview, National President, National Association of Telecom Subscribers, Deolu Ogunbajo, while appraising customer care experience on the networks, said: “If there is any major excruciating experience being faced by subscribers in the country, aside the evidently intermittent poor quality of service still noticed on the networks, poor customer care attendance has remained a cankerworm in the operators’ quest of delivering the best of services in this part of the world.”
Also, in an interview with The Guardian, former President, Association of Telecoms Companies of Nigeria, Dr. Emmanuel Ekuwem, said subscribers who fell prey to fraudulent text messages should be asked “what competition they participated in that would have resulted in such a message? I detest this get-rich-quick syndrome. You want money for doing nothing! This is greed. Where is the money coming from? Who generated it? Subscribers should authenticate such ‘games’ with the operators and with the NCC.”
Ekuwem, one of the proponents of the SIM registration, said the exercise “when duly completed, would for sure check telecoms-based or telecom space-facilitated criminal activities like kidnapping, abduction, terrorism and 419, among others.”
He added: “Can you imagine the frustration of a police officer pleading on phone with kidnappers who are demanding ransom before releasing a victim? The phone SIM number used by the kidnappers could not be matched with a uniquely identified individual. This applies to militants, terrorists, those who make threat calls or send threat text messages to people. No country can progress that way.”
Inflation, unemployment rise as govt rolls out data on economy
Wednesday, 16 November 2011 00:00 By Ade Ogidan (Lagos), Oghogho Obayuwana, Mathias Okwe and Karls Tsokar (Abuja) News - National
1.8m joins labour market in Q3
CBN, W’Bank seek law on loan security
IF they really care, the development should translate to sleepless nights and grey hairs for the managers of the nation’s economy and their political overlords. The question is: Do they?
In any case, the National Bureau of Statistics yesterday said the rate of unemployment and inflation is on the rise in the country, even as the Gross National Product (GDP) warmed upward, albeit at snail’s speed, in the third Quarter (Q3) of 2011.
Statistician-General of the Federation, Yomi Kale, stated this in Abuja when he briefed the media on the latest GDP-related data findings, Composite Price Index (CPI), the inflationary trends and allied statistics.
Meanwhile, the quest of the Nigerian government to enthrone a regime of financial inclusion, which would guarantee access to credit to a large spectrum of Nigerians particularly in the rural areas where poverty is endemic has created the need for a law to securitize collaterals like movable assets and capital/money market instruments, the Central Bank of Nigeria (CBN) has said.
In essence, what the law seeks is to recognise such assets as security upon which financing institutions can depend to grant credits to applicants which is not the case at the moment.
Already, work on the Bill by the Financial Services Sector (FSS) 2020 Committee of the CBN with assistance from the World Bank-sponsored Micro, Small and Medium Enterprises (MSME) Project Team has gone far.
Speaking yesterday at the national stakeholders’ workshop in Abuja on the secured lending and securitisation, Governor, CBN, Lamido Sanusi, endorsed the development, pointing out that the proposed law will also set up a registry for secured claims against movables and chattel mortgages.
Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Ayoade Adeosun, assured that the Bill would be given accelerated treatment to create opportunities for Nigerians and avoid the unpleasant development currently ravaging the North African region.
And, in an ever-increasing intensity of engagement with the rest of the world, Nigeria now needs a clear Diaspora policy, which would among others, build on the $15 billion currently entering the country through remittances from abroad.
Besides, while it has become imperative to acknowledge the diversity of Diasporan interests and strategies, Nigeria would do well to also encourage Diasporan ownership of their initiatives and contributions.
These and other submissions were made yesterday in Abuja by the Minister of Foreign Affairs, Olugbenga Ashiru, while conferring with the House of Representatives committee on the Diaspora.
Kale said: “The unemployment rate...in the first half of 2011 increased to 23.9 per cent...This represents an increase of 1.8 million additional unemployed people between December 2010 and June 2011.”
The Bureau attributed the rise in the ranks of the nation’s unemployed to fresh entrants to the job market and worker layoffs across all sectors of the economy in the course of the year.
Stating that every employed Nigerian was economically responsible for three other citizens, Kale disclosed that Yobe, Zamfara and Niger states stayed atop the ignoble list of states with highest incidence of unemployment.
Yobe, which recently reeled under terrorist attack, tops the chart with 60.6 per cent of its employable population being unemployed. Zamfara followed with 42.6 per cent of the total employment population, while Niger has 39.7 per cent.
States in the South-West had the lowest index. Osun came in with the lowest figure of three per cent unemployment; Kwara, 7.1 per cent and Lagos 8.3 per cent.
Stressing that the inflationary trend is “slightly on the rise”, Kale said: “The biggest contributors to the rise in consumer inflation in the preceding month were high cost of kerosene and diesel”. Consumer inflation rose to 10.5 per cent year-on-year in October, up from 10.3 per cent in the previous month.
Kale also said the GDP has not risen from its 2010 point because of the decline in oil growth. He added: “Crude oil production, with its associated gas components, for example, fell to 2.49mbpd on average in Q3 2010 to 2.36mbpd on average in Q3 2011.”
While the non-oil sector grew by 8.81 per cent with contributions from agriculture, wholesale/retail trade, telecommunications, Manufacturing and Finance/Insurance sectors, the oil sector output however recorded a negative growth during the third quarter of 2011 arising from lower oil production.
The structure of the economy, according to the Bureau, remained the same, as the three major contributors to the economy, agriculture, petroleum products and wholesale and retail trade accounted for 76.2 per cent of the GDP.
On the performance of some sectors of the economy, Kale said that the Hotels and Restaurants sector employed more than 73,000 people in 2010, with an average monthly emolument of N34,544.
According to him, the total income attributable to foreign and domestic guests in the hotels in 2010 was N131.43 billion.
The Statistician-General disclosed further that the building and construction sector engaged 76,611 in 2010, with an average monthly emolument of N35,201.
Kale said that 1,414 people either lost or changed their jobs in the cement manufacturing sub-sector, while 7,160 people were engaged in the sub-sector in 2010, with a monthly emolument of N80,142.
However, the Statistician-General of the Federation said, “Nigeria has been able to climb up faster than most economies of the world despite not achieving double digits growth, as in the third quarter of the year. Only two countries - China and Estonia - out of 13 countries that have so far released their Q3, 2011 GDP, grew faster than Nigeria”.
Kale hinted that rebasing the GDP to a more recent year would help to better position the country’s GDP “to a more realistic status, given that the base year for calculation has been 1990, more than 20 years ago.”
At the House hearing yesterday, committee chairperson, Abike Dabiri-Erewa opened the session by underscoring the need for Nigeria to have a “constructive and documented” policy on the Diaspora.
Other members of the committee also wondered why the Federal Government was seemingly concentrating efforts at mobilising Diasporan response to Nigeria’s economic needs in western nations, to the detriment of the Middle East, Asia and even African nations like Sudan reputed to have eight million Nigerians.
Urging the Lower House to look into several burning issues like dual citizenship, Ashiru said: “If we want to recruit the best of talents, we should revisit the issue of dual citizenship, so that there are no discrimination between ‘home’ Nigerians and ‘Nigerians in the Diaspora.’ Collaboration must now be built with the Diaspora based on realistic objectives and strategies.”
20 feared killed in Ogun NURTW clash
Wednesday, 16 November 2011 00:00 By Osigbesan Sultan Luqman and Gbenga Akinfenwa (Lagos) Charles Coffie Gyamfi (Abeokuta) News - National
Amosun orders 30 APCs as banks close shops over robbery threats
NO fewer than 20 people were feared killed yesterday morning in Sango-Ota, Ogun State, as two opposing factions of the National Union of Road Transport Workers (NURTW) turned the boisterous town to a theatre of war over the control of the Sango Motor Parks.
Yesterday’s mayhem occurred barely three weeks after a similar incident in Ifo and Ijebu-Ode, which claimed the lives of six people, leading to the disbandment of the NURTW in Ijebu-Ode. A few days before then, there had been a similar clash between factions of the union in Ijebu-Igbo in which lives were also lost.
The Sango clash came just 24 hours after an Abeokuta State High Court struck out an application challenging the conduct of a proposed election by a faction of the union in the state.
Also, following last Thursday’s fatal robbery incidents at the Olabisi Onabanjo University (OOU), Ago Iwoye, Ogun State, and a deep-seated feeling of insecurity, banks in that university community and across major towns in Ijebu area of the state have shut their doors against their customers for three working days, starting last Friday.
The Guardian learnt that the banks took the step on the advice of the State Police Command.
According to a banker in Ijebu Ode who asked not to be named, “the police told us to shutdown our operations pending the time the Ijebu Bankers’ Forum would meet with Governor Ibikunle Amosun to discuss the security situation in the whole of Ijebu area, which is now under siege by armed robbers.”
The situation has created a huge cash crunch problem for residents of Ijebu-Ode, Ijebu-Igbo and Ago-Iwoye as their funds are trapped in the banks, whose ATMs have also ran dry.
Meanwhile, Amosun has pledged to wage “total war on armed bandits” in the state.
He made the pledge yesterday while receiving leaders of the Ijebu Bankers’ Forum in Abeokuta, the state capital.
Consequently, the governor has ordered 30 Armoured Personnel Carriers (APCs) to assist the police and other security operatives in combating armed banditry and other violent crimes in the state.
Ten of the APCs, according to a statement by Funmi Wakama, Senior Special Assistant (Media and Communication) to the governor, would soon arrive the state.
Amosun tasked security operatives in the state to be more active, stressing that the frequency of armed banditry in the state did “not speak well of the competence of the security men.”
Chairman, Ijebu Bankers’ Forum, Olusegun Olusoga, informed the governor of the security challenges facing their operations and appealed for government’s assistance.
Pandemonium broke out in Sango on Monday night when a faction of the union took steps to forcefully overthrow a faction of the NURTW in the town.
This met stiff resistance and clashes ensued all night, with sporadic gunshots.
Yesterday morning when the police doused the tension, 10 people have been killed. One of the victims’ remains were left under the Sango bridge, which is still under construction, in the pool of his own blood.
Scores of other people were seriously injured in the mayhem, including an employee of the construction giant, Julius Berger Plc, who was stabbed on the neck.
There were, however, conflicting figures of casualties as some said eight while others claimed the number had risen to 20.
When The Guardian visited the scene, commercial activities in the area was grounded, as shops were under lock and key. All the banks also locked out customers in the area.
Armed police personnel drafted to the scene frisked passersby who were ordered to raise their hands up as they passed on.
But despite the security beef-up, the fracas spread to the neighbouring Ogba Iyo in Ijoko, a suburb of Sango around 11.00 a.m. and residents of the area were forced to run for their lives.
When The Guardian visited the Sango Police Station to confirm the number of casualties, the Divisional Police Officer (DPO) was reportedly on the field to monitor the situation.
The State Police Public Relations Officer (PPRO), Muyiwa Adejobi, confirmed the incident.
He said: “There was a minor fracas in the morning and it was caused by NURTW members over the control of the motor park, but the command has drafted its men to the scene.
“We are even sending more men there; we are sending additional 40 men to that place. We are trying to make some arrests. We must arrest some people for peace to reign in that place. That is what the command is trying to do now.”
On the number of casualties, Adejobi said: “I don’t know the number of casualties. For now, I don’t have the exact number. Nobody can say somebody is dead; a medical doctor has to certify. The CP has not given us the exact figure. We have deployed APC. Everybody should go about their lawful business.”
The Guardian learnt that the incessant clashes by the NURTW factions could not be unconnected with an alleged failure of the union leaders to conduct an overdue election for new leaders for the group.
According to sources, the tenure of the current union leaders in the state had expired, “but they have refused to conduct election for new leaders.”
For this, some aggrieved members of the union went to court and Judge Peter Onamade of the State High Court, Abeokuta, ruled that the union leaders whose tenure had ended should give up their positions for the conduct of fresh election to elect new leaders.
Senate raises fresh security concern, to parley with security chiefs
Wednesday, 16 November 2011 00:00 From Madu Onuorah, John-Abba Ogbodo, Bridget Chiedu Onoche (Abuja), Laolu Akande (New York) and Njadvara Musa (Maiduguri) News - National
Nigeria tasks UN, others on terrorism
AGAIN, the security threat in the country has engaged the attention of the Senate with the chamber yesterday mandating its committees to work out modalities to address the problem.
The development came as Nigeria called on the United Nations and member-states to do more in the global fight against the menace.
As soon as the Senate resumed sitting yesterday, the President of the Senate, David Mark, called for an executive session.
The Guardian learnt that in the session, which lasted about two hours, Mark drew the attention of senators to the recent bombings in Borno and Yobe states where scores of people, including security men were killed.
Senators who spoke on the matter condemned the bombings and stressed the need for holistic action. The lawmakers noted that in view of the security challenges in the country, it has become imperative to have a session with the heads of security organisations in the country as well as the National Security Adviser (NSA), Gen. Andrew Owoye Azazi, to work out a fresh strategy that would tackle the problem.
Addressing a press conference at the end of the session, the Chairman of Senate Committee on Information, Media and Publicity, Eyinnaya Abaribe, said the meeting was devoted to security challenges in the country and some committees had been mandated to discuss with security chiefs.
It was also gathered that during the closed-door session, some senators, particularly those from the opposition parties, expressed anger over the inability of the executive arm to bring the security situation under control. Some of them were said to have gone to the extent of suggesting that a vote of no confidence be passed on the government but it took the intervention of Mark to calm frayed nerves.
It was resolved that while the Senate committees are meeting over the modality to adopt in tackling the situation, the leadership of the Senate should meet with the president with a view to working out the way forward.
At another forum yesterday, Mark said that the National Assembly was working on measures to approve new funding for the Nigerian military to enable it tackle effectively the challenges of insecurity in the country.
The Senate President also said that the current challenges had become a great financial burden to the military as most of the funds it is currently using to tackle the menace of insecurity, especially the war on terrorism, were not captured in this year’s budget as they were never envisioned when the current budget was being worked on.
Speaking at a three-day interactive session on civil-military relations organised by Army Headquarters Abuja, Mark said that the military’s participation in Internal Security Operations (ISOs) had necessitated a special budgetary arrangement in form of operational funds that will take care of extra-budgetary operations.
Decrying the state of the barracks, Mark, represented by the chairman of the Senate Committee on Defence/Army, George Sekibo, noted that military personnel who are trained to lay down their lives for the nation should be given adequate welfare for them to put up their best.
The UN in general is concerned that terrorists are still beating the system put in place since 2001 even though there are still areas of improvements.
Rising from a Security Council meeting that lasted into the late hours on Monday, Nigeria and other council members heard reports from UN committees charged with the enforcement of global anti and counter terrorism resolutions and sanctions.
Speaking on Nigeria’s behalf, Ambassador Raff Bukun-Olu Onemola said that the recent meetings and prior resolutions on the subject had produced “significant progress over the last decade.” According to him, “despite improvements, more needed to be done to, among other things, build new partnerships in and among regions of the world to defeat terrorism.”
Onemola, who is also the Deputy Permanent Representative of Nigeria to the UN, called on the UN committees “to expedite action on the implementation of resolution 1624 (2005),” which asked all states to cooperate to strengthen the security of their international borders by enhancing terrorist screening and passenger security procedures, with a view to preventing those terrorists from entering their territory.
Meanwhile, the Borno State Police Commissioner, Simeon Midenda, has stated that the multiple bomb blasts in Bulunkutu and Abaganaram wards of Maiduguri metropolis on Monday were to attract “attention and instigate” men of the Joint Task Force (JTF) by the Boko Haram armed sect in its continued serial attacks and killings.
Midenda spoke yesterday in Maiduguri on the blasts that went off simultaneously within three hours, including the time when the convoy of Governor Kashim Shettima was at the Maiduguri International Airport.
The Field Operation Officer of JTF, Col. Victor Ebhaleme, however, told The Guardian that it was a small canister of explosive device thrown at the airport road by suspected bombers, before the convoy of the governor passed the Bulunkutu blast site. He said no one has been reported killed or injured in the minor blast, as members of the JTF took positions in repelling the suspected bombers of Monday evening.
CJN faults plea bargain, injunctions against arrest
Wednesday, 16 November 2011 00:00 From Lemmy Ughegbe, Abuja News - National
Says both mess up anti-graft war
IN a no-holds-barred that has become customary of his public address since he ascended office as the Chief Justice of Nigeria (CJN), Justice Dahiru Musdapher, yesterday deplored the plea bargain facility offered to suspects standing trial for corrupt enrichment and sundry financial crimes by the Economic and Financial Crimes Commission (EFCC), saying it makes a mess of the war against corruption.
Justice Musdapher who described plea bargain as a novel concept, said it has a “dubious” origin aimed at shielding high profile crooks who rape public treasury by offering them soft landing.
Speaking at the fifth yearly conference of the Section on Legal Practice of the Nigerian Bar Association (NBA) in Abuja yesterday, the CJN, represented by Justice of the Supreme Court, Nwali Sylvester Ngwuta, declared the system of plea bargain as alien to Nigerian law - substantive or procedural.
“It was invented to provide soft landing to high profile criminals who loot the treasury entrusted to them. It is an obstacle to our fight against corruption; it should never again be mentioned in our jurisprudence,” he stated.
Plea bargain system became a prominent feature during the trial of former Inspector General of Police, Mr. Tafa Balogun and former Edo State governor, Chief Lucky Igbinedion, who were let off the hook by EFCC after some horse-trading that received the disapproval of most Nigerians.
He also said those who get court injunctions to restrain law enforcement agencies from arresting and prosecuting them, may just be guilty of the alleged offence brought against them.
He said: “The guilty are afraid and when a man who has abused the public trust reposed in him feels the heat of the approaching long arm of the law, he rushes to a judge with flexible conscience who makes him untouchable to the law enforcement agents. It is another obstacle to the struggle to uproot corruption in this country.”
Making a case for the review of some portions of the country’s criminal laws, Justice Musdapher said: “May I also draw your attention to our prisons where fellow human beings are reduced to the barest level of humanity. I think time is ripe to include a provision for suspended sentence in the criminal procedure code and criminal procedure law, after all, as Roscoe Pound said in his introduction to the Philosophy of Law (1922) ‘The law must be stable but it must not stand still.’”
On the on-going debate of holding charges, he noted that every legal practitioner is familiar with the term by which citizens are dumped in prison by a court, which lacks jurisdiction to try them.
“It is largely responsible for the congestion in prisons across the country. The state cannot incarcerate its citizens while scrambling for evidence to build a case against them, and if it has a case, it should take the accused to a court of competent jurisdiction. As often in the case when he is set free because he has no case to answer, he goes home in shame, a damaged man, without apology, without compensation,” he lamented.
Lawmakers lament non-payment of jumbo loans by agric bank
Wednesday, 16 November 2011 00:00 From Saxone Akhaine, Kaduna News - National
MEMBERS of the Senate Committee on Agriculture yesterday expressed concern over alleged non-payment by the Bank of Agriculture (BOA) of jumbo loans disbursed to politicians and other influential Nigerians, standing over N12 billion.
The legislators who were at the corporate office of BOA in Kaduna yesterday, as part of their oversight functions, pledged to ensure that the National Assembly do everything possible to recover the unpaid loans and also revolutionise the activities of the bank in order to redress the mounting problems of the agricultural sector in the country.
Speaking after a meeting with the management of BOA and members of the Senate Committee on Agriculture, the chairman, Emmanuel Bwacha, told journalists that “we as a committee are essentially charged with the responsibility of intervening, particularly legitimately where it becomes necessary,” pointing out that the level of indebtedness and unpaid loans recorded by the Bank of Agriculture is alarming and that something must be done to tackle the situation.
Bwacha argued: “One thing we have come to understand in the bank is that there is no sufficient stringent measures in place to ensure 100 per cent recovery of loans. Like any other commercial bank, this bank ought to operate or adopt measures in recovering loans.”
The Senate Committee chairman explained that some influential Nigerians took advantage of the lapses in the policies of the BOA in securing huge loans as farmers and never to repay, promising that the National Assembly would ensure that those who took the loans and did not pay back are brought to justice.
Besides, the Executive Director, Business Development of BOA, Alhaji Waziri Ahmadu, who received the Senate committee, said the bank has not been able to meet its challenges of granting farmers loans because of shortage of funds. According to him, the total application for loans stood at over N42 billion while the bank has been making frantic efforts to recover the unpaid loans of over N12 billion.
Ahmadu said: “The position of the bank has been like this over the last few years, and the bank has not invested adequately in loan recovery. It is true that some loans were given to influential people in the society and these loans have been looked upon as their share of the national cake, and no much effort was made in the past in recovery.
“Until today, we have about N12 billion standing out there as loans unpaid. This management sees this reserve of unpaid loans as money we should recover completely. But there are difficulties with a number of them. Some, you find out that when they were disbursed, they were not properly secured.”
He disclosed that the bank has resolved to prosecute those who have refused to pay back loans, pointing out that a good number of them were already in court.
“We are already in court with most of the people that had jumbo loans. In some cases, we have received judgment in our favour and there have been appeals too. As to those loans at the macro level, we are pursuing the strategy we can adopt to get them back,” he said. Some of the bank loans, he noted, “were granted to borrowers that are industries and were victims of Federal Government policies.”
“There is a company, for instance, that borrowed money from us and immediately after disbursement, the government changed its policy on agricultural import and the company suddenly found itself on the receiving end. That company owes us a lot of money,” Ahmadu noted.
Syrian opposition group seeks UN peacekeepers, meets Arab League
Wednesday, 16 November 2011 00:00 Editor News - World
A LEADING Syrian opposition group, Syrian National Council, has called for the introduction of United Nations (UN) peacekeepers in the country after talks with Russian government officials, according to the Russian news agency, Interfax.
The group chairman, Burhan Ghalioun, also urged Russia to demand Syrian President Bashar al-Assad's resignation, according to a report by the Cable News Network (CNN), after meeting with officials at the Russian Foreign Ministry.
Ghalioun, in a news conference held at Interfax's Moscow office, said that he was not asking for military intervention but rather "blue helmet" peacekeepers from the United Nations.
Meanwhile, the Arab League met opponents of al-Assad yesterday, a day after violence in his country claimed 69 more lives.
The league, which has voted to suspend Syria's membership from today, asked Syrian opposition groups to draw up their plans for a power transition, as a prelude to a wider gathering on Syria's future planned by the Cairo-based body.
"The Arab League will announce soon a date for a conference to include many of the Syrian opposition groups to discuss the ways and time needed to move to a transitional period," Abdel Basset Sedah, of the opposition Syrian National Council's executive office, told Reuters after meeting league officials.
After months of hesitation, the league decided on Saturday to discipline Syria for pursuing a violent crackdown on dissent instead of implementing an Arab peace initiative.
But it has stopped short of calling for Assad's departure or proposing any Libya-style foreign military intervention in Syria.
Hundreds of Syrians have been killed this month in one of the bloodiest periods of the revolt, inspired by uprisings which have overthrown leaders in Tunisia, Egypt and Libya.
Damascus says it is committed to the Arab peace initiative, which calls for a ceasefire and dialogue with the opposition.
Upset by its imminent suspension from the Arab League, it has requested an emergency Arab summit, but an influential Saudi-led bloc of six Gulf Arab states rejected the idea, which would need the support of 15 of the league's 22 members.
Arab ostracism is a particularly bitter blow for Assad, who has always seen himself as a champion of Arab unity.
The talks in Russia came a day after Jordan's King Abdullah said that he would step down if he were Bashar al-Assad, a statement observers interpreted as a call for the Syrian president to do just that.
"If Bashar has the interests of his country, he would step down, but he would also create an ability to reach out and start a new phase of Syrian political life," Abdullah told the BBC.
In Amman, Jordan, about 300 people assembled spontaneously after midnight yesteray in front of the Syrian embassy in support of King Abdallah's statement, one of the protesters said.
Many who gathered were Syrians living in Jordan, said protester Obaydah Amer.
A few hours after the Jordanian king's statement, Petra, the state-run news agency, said Abdullah's remarks "were not a direct call for the Syrian president to step down but he was, rather, responding to a question on what can a person in his position do."
Joining the chorus of criticism, UN Secretary-General Ban Ki-moon said during a visit to Bangladesh: "President Bashar should stop immediately the killing of his own people."
The United Nations says more than 3,500 people have been killed since protests against 41 years of Assad family rule began in March. The government blames armed gangs sponsored from abroad for killing at least 1,100 troops and police.
Russia, one of Syria's last few foreign friends, hosted talks with the Syrian National Council and urged it to hold a dialogue with Assad's government. The opposition group responded by pressing Moscow to join calls for the Syrian leader to quit, Russia's Interfax news agency reported.
Russia joined China last month to block a UN Security Council resolution that would have condemned Assad's crackdown, and has accused the West of discouraging dialogue in Syria.
Turkish Prime Minister Tayyip Erdogan, who had fostered close ties with Syria before this year's unrest, warned Assad that his government was on a "knife-edge" and demanded an apology for attacks on Turkey's diplomatic missions in Syria.
Syrian Foreign Minister Walid al-Moualem apologised on Monday for the attacks, which also targeted Saudi and French missions. But Erdogan said Turkey expected more contrition.
"Bashar, you are required to punish those who attacked the Turkish flag. We want the Syrian administration to not only respect the Turks in Turkey and the Turkish flag but also to respect their own people, we especially want this."
Erdogan has yet to unveil promised sanctions against Syria, but his country now hosts the main Syrian opposition and has given refuge to Syrian civilians and defecting soldiers.
While no sanctions have been announced, Turkey's energy minister suggested power supplies to Syria might be affected.
"Right now, we are supplying electricity there (Syria). If this course continues, we may have to review all of these decisions," Taner Yildiz told reporters.
Violence in Syria has not abated. Activists reported at least 69 deaths in southern Syria on Monday, most in clashes between loyalist troops and army deserters.
The Syrian Observatory for Human Rights said 34 soldiers and security men were killed in clashes with suspected army deserters who attacked military vehicles in the south.
Pain on Calabar-Itu-Aba Federal road
Tuesday, 15 November 2011 00:00 From Anietie Akpan, Calabar News - Metro
Forced to sleep by roadside, stranded motorists beg govt to repair neglected highway
NOT many Nigerians know, but the Calabar-Itu-Aba Highway has become one of the most degraded Federal roads in the country.
Commissioned about 36 years ago, the road has collapsed in several locations, the three worst being in Odukpani Local Council of Cross River State.
Motorists travelling on the road are sometimes forced to spend 24 hours or more to get to their destinations.
An Uyo-based banker, Mr. Etim Etim, who left Uyo on Friday for Calabar, joined hundreds of other motorists to sleep by the roadside.
An angry Etim told The Guardian: “Is there anything like government again? The tourism industry in Cross River is threatened. Do you know the number of man-hours wasted on this road? People who would have come to Calabar to do business cannot come and even those within Calabar cannot travel out to the neighbouring states of Akwa Ibom, Abia and Imo. How can you be talking of tourism and Calabar festival when the roads are bad? This is not a matter of Federal roads. The state government should rise to the occasion and mobilise contractors to the major bad spots in Odukpani for urgent repairs. I left for Calabar yesterday, a journey of about 75 minutes, but here I am, 24 hours later, all because of the bad road. The government is insensitive to the plight of the populace and is only in Nigeria that this kind of thing would happen and everyone goes to sleep. We pay tax, yet there is nothing to show for it”.
The hardship to motorists and the accompanying lamentations have increased these few days with the total obstruction of the route at the Odukpani axis, causing stranded commuters, especially market women and farmers, to lament their fate in tears.
A stranded businessman, Ifeanyi Okoro, who owns a shop at Marian Market, Calabar said: “Cross River State government should have intervened to save this road, whether Federal or not. It can thereafter apply for a refund. This all-important, but terrible road can cripple the economy of this state. Look at the farm produce in those trucks rotting away. How will those poor women who slaved to buy them recover from such huge losses?”
Etim Asuquo, a native of Unyanga in Akamkpa Council was also angry.
“The problem is the criminal negligence this road has suffered from state and Federal governments. What this road needs now is a total reconstruction but as a remedial measure, let them see how they can patch up the collapsed places.”
Another stranded commuter, Madam Ikwo Ekpenyong told The Guardian: “I have spent two days on this road with things I bought from the bush market. As I am talking to you, we are not even sure when we will leave this place with this type of traffic jam”.
Indeed, because of the deplorable state of the road, tankers, trucks, buses, cars in a desperate attempt to manouvre through, block the entire road at both the Odukpani and Akamkpa ends.
Driving into or out of Calabar through the route is almost impossible.
As a way out, many abandon their cars to ride on commercial motorcycles in order to beat the chaotic traffic.
Travellers from Uyo would stop at Awi Road, then trek across the bad spots to Odukpani Council Secretariat for another vehicle to convey them to Calabar.
Due to the poor state of the highway, trucks fall frequently and further worsen the situation as the road gets blocked.
However, the state Governor Liyel Imoke has admitted that one of the challenges affecting tourism in the state is the deplorable condition of Federal roads.
The governor has also taken the matter to the Presidency, pleading for the rehabilitation of Federal roads in Cross River to enable the state government meet its tourism development targets.
Stating his case to the Minister of Works and Housing, Mr. Mike Onolemenen in Abuja recently, Imoke said tourism couldn’t thrive with bad roads.
He explained that the strategic location of the state and its peculiar topography as well as its current emphasis on Tourism and Agricultural innovations was dependable on good roads infrastructure to succeed.
He was said to have painted a graphic picture of the deplorable state of Federal roads in the state, stressing
that it was critical that the state should partner with the Federal Ministry of Works in ensuring that within the overall masterplan, tourism is considered in addition to its huge agrarian economy for sustainable development.
The minister acknowledged the role of his Ministry to the successful running of the economy, disclosing that although President Goodluck Jonathan recently directed the Ministry of Works to look at the roads leading to Obudu Ranch Resort, proactive measures had also been put in place to carry the state along in the unfolding nationwide roads construction programme.
He revealed that an audit had already been carried out on Federal roads in the state and reiterated the commitment of the Ministry to ensure that Nigerians in the six geo-political zones drove in dual carriage ways to the Ranch Resort, saying that the dualization of the Aba-Ikot Ekpene-Owerri road would be the forerunner of the dual carriage that would lead to Calabar.
Inflation, unemployment rise as govt rolls out data on economy
Wednesday, 16 November 2011 00:00 By Ade Ogidan (Lagos), Oghogho Obayuwana, Mathias Okwe and Karls Tsokar (Abuja)
1.8m joins labour market in Q3
CBN, W’Bank seek law on loan security
IF they really care, the development should translate to sleepless nights and grey hairs for the managers of the nation’s economy and their political overlords. The question is: Do they?
In any case, the National Bureau of Statistics yesterday said the rate of unemployment and inflation is on the rise in the country, even as the Gross National Product (GDP) warmed upward, albeit at snail’s speed, in the third Quarter (Q3) of 2011.
Statistician-General of the Federation, Yomi Kale, stated this in Abuja when he briefed the media on the latest GDP-related data findings, Composite Price Index (CPI), the inflationary trends and allied statistics.
Meanwhile, the quest of the Nigerian government to enthrone a regime of financial inclusion, which would guarantee access to credit to a large spectrum of Nigerians particularly in the rural areas where poverty is endemic has created the need for a law to securitize collaterals like movable assets and capital/money market instruments, the Central Bank of Nigeria (CBN) has said.
In essence, what the law seeks is to recognise such assets as security upon which financing institutions can depend to grant credits to applicants which is not the case at the moment.
Already, work on the Bill by the Financial Services Sector (FSS) 2020 Committee of the CBN with assistance from the World Bank-sponsored Micro, Small and Medium Enterprises (MSME) Project Team has gone far.
Speaking yesterday at the national stakeholders’ workshop in Abuja on the secured lending and securitisation, Governor, CBN, Lamido Sanusi, endorsed the development, pointing out that the proposed law will also set up a registry for secured claims against movables and chattel mortgages.
Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Ayoade Adeosun, assured that the Bill would be given accelerated treatment to create opportunities for Nigerians and avoid the unpleasant development currently ravaging the North African region.
And, in an ever-increasing intensity of engagement with the rest of the world, Nigeria now needs a clear Diaspora policy, which would among others, build on the $15 billion currently entering the country through remittances from abroad.
Besides, while it has become imperative to acknowledge the diversity of Diasporan interests and strategies, Nigeria would do well to also encourage Diasporan ownership of their initiatives and contributions.
These and other submissions were made yesterday in Abuja by the Minister of Foreign Affairs, Olugbenga Ashiru, while conferring with the House of Representatives committee on the Diaspora.
Kale said: “The unemployment rate...in the first half of 2011 increased to 23.9 per cent...This represents an increase of 1.8 million additional unemployed people between December 2010 and June 2011.”
The Bureau attributed the rise in the ranks of the nation’s unemployed to fresh entrants to the job market and worker layoffs across all sectors of the economy in the course of the year.
Stating that every employed Nigerian was economically responsible for three other citizens, Kale disclosed that Yobe, Zamfara and Niger states stayed atop the ignoble list of states with highest incidence of unemployment.
Yobe, which recently reeled under terrorist attack, tops the chart with 60.6 per cent of its employable population being unemployed. Zamfara followed with 42.6 per cent of the total employment population, while Niger has 39.7 per cent.
States in the South-West had the lowest index. Osun came in with the lowest figure of three per cent unemployment; Kwara, 7.1 per cent and Lagos 8.3 per cent.
Stressing that the inflationary trend is “slightly on the rise”, Kale said: “The biggest contributors to the rise in consumer inflation in the preceding month were high cost of kerosene and diesel”. Consumer inflation rose to 10.5 per cent year-on-year in October, up from 10.3 per cent in the previous month.
Kale also said the GDP has not risen from its 2010 point because of the decline in oil growth. He added: “Crude oil production, with its associated gas components, for example, fell to 2.49mbpd on average in Q3 2010 to 2.36mbpd on average in Q3 2011.”
While the non-oil sector grew by 8.81 per cent with contributions from agriculture, wholesale/retail trade, telecommunications, Manufacturing and Finance/Insurance sectors, the oil sector output however recorded a negative growth during the third quarter of 2011 arising from lower oil production.
The structure of the economy, according to the Bureau, remained the same, as the three major contributors to the economy, agriculture, petroleum products and wholesale and retail trade accounted for 76.2 per cent of the GDP.
On the performance of some sectors of the economy, Kale said that the Hotels and Restaurants sector employed more than 73,000 people in 2010, with an average monthly emolument of N34,544.
According to him, the total income attributable to foreign and domestic guests in the hotels in 2010 was N131.43 billion.
The Statistician-General disclosed further that the building and construction sector engaged 76,611 in 2010, with an average monthly emolument of N35,201.
Kale said that 1,414 people either lost or changed their jobs in the cement manufacturing sub-sector, while 7,160 people were engaged in the sub-sector in 2010, with a monthly emolument of N80,142.
However, the Statistician-General of the Federation said, “Nigeria has been able to climb up faster than most economies of the world despite not achieving double digits growth, as in the third quarter of the year. Only two countries - China and Estonia - out of 13 countries that have so far released their Q3, 2011 GDP, grew faster than Nigeria”.
Kale hinted that rebasing the GDP to a more recent year would help to better position the country’s GDP “to a more realistic status, given that the base year for calculation has been 1990, more than 20 years ago.”
At the House hearing yesterday, committee chairperson, Abike Dabiri-Erewa opened the session by underscoring the need for Nigeria to have a “constructive and documented” policy on the Diaspora.
Other members of the committee also wondered why the Federal Government was seemingly concentrating efforts at mobilising Diasporan response to Nigeria’s economic needs in western nations, to the detriment of the Middle East, Asia and even African nations like Sudan reputed to have eight million Nigerians.
Urging the Lower House to look into several burning issues like dual citizenship, Ashiru said: “If we want to recruit the best of talents, we should revisit the issue of dual citizenship, so that there are no discrimination between ‘home’ Nigerians and ‘Nigerians in the Diaspora.’ Collaboration must now be built with the Diaspora based on realistic objectives and strategies.”
Reps meet airline body over aviation sector’s crises
Wednesday, 16 November 2011 00:00 By Wole Shadare Business Services - Business News
NCAA begins investigation on Air Nigeria’s grounding
IN what may not be unconnected with crises in the aviation industry, House of Representatives Committee on Aviation has invited Airline Operators of Nigeria (AON), umbrella body for Nigerian airlines for a meeting. The meeting takes place today at one of the meeting rooms of the House of Representatives.
Meanwhile, the Ministry of Aviation, the Nigerian Civil Aviation Authority (NCAA), top officials of Air Nigeria, members of the National Association of Aircraft Pilots and Engineers (NAAPE) are also meeting over the issues that lead to the grounding of Air Nigeria’s operations on Monday by the union.
In a letter written to all members of the group, dated November 14, 2011, Chairman of AON, Dr. Steve Mahonwu, noted they were yet to recieve the agenda for the meeting.
He urged the operators to arm themselves with various essentials of their operations.
The assistant scribe of the body, Alhaji Muhammed Tukur, said most likely to top agenda for the meeting is the controversy over the Bilateral Air Services Agreement (BASA) row between UK and Nigeria.
Many are divided over whether the Ministry of Aviation took the decision to penalise British Airways over matter that the airline had no input. .
While some applauded the ministry’s action, others were of the opinion that the ministry mixed up the issues of slots and BASA.
The AON had equally faulted a section of an advertorial by an airline which stated that the flag carrier should secure the 21 slots of the country’s BASA pending the entry on the London route by another Nigerian carrier.
The AON scribe argued that doing so makes it very difficult for a new entrant on the route to be allowed to share the frequencies from the airline that is keeping it for the country.
Tukur decried the messy situation he said is playing out, adding that there are more bigger problems for the industry in the future.
Spokesman for NCAA, Sam Adurogboye, told The Guardian that the minister summoned them to Abuja to know what actually went wrong in respect of the Air Nigeria space.
He explained that the authority had already set up a committee to look into the matter, by raising inspectors to investigate the matter.
According to Adurogboye, “it is the outcome of the committee that will inform action on the airline if found culpable.”
The NAAPE had grounded the airline’s entire operations, alleging that the engineers had no tools and spares to work with, including lack of manpower, poor pay package, delayed salary and interference in maintenance programmes by the chief executive among several allegations.
Nigeria’s development agenda and challenge of budget failures
Wednesday, 16 November 2011 00:00 BUKKY OLAJIDE Business Services - Money Watch
With less than nine years to 2020, the lingering challenge of parlous infrastructure appears to have worsened the state of the economy with perennial budget implementation failures. When will the country come out of the woods, as the race to another budget year hits home bend? BUKKY OLAJIDE examines the scenario, from the perspective of stakeholders.
THE decadent state of infrastructural facilities and lack of basic social amenities in the country are only symptomatic of budget failures.
Despite claims to fiscal prudence, the governments at all levels appear inept in actualising the basic tenets of budget implementation.
Consequently, the business environment remains unattractive to investors, with achievement of the Millennium Development Goals perching within the region of serious uncertainty.
For example, a country that seeks to be in the top 20 bracket in about eight years’ time still projects manufacturing to contribute only 4.6 per cent of the Gross Domestic Product in 2015.
A non-governmental organisation, Centre for Social Justice (CSJ), led by Eze Onyekpere, with support from CSJ’s Fiscal Governance Team (Ikechukwu Okoli and Victor Abel) did analysis on the 2012 to 2015 Medium Term Expenditure Framework (MTEF).
Their report reviews the terms of reference of the analysis and the methodology employed. It also places analysis in the context of previous reviews undertaken by CSJ for the enhancement of fiscal governance and the full realisation of the intendments of the Fiscal Responsibility Act.
The rationale for extending the MTEF beyond the three-year framework to four years was questioned. The timing of the preparation of the MTEF, its submission to the National Assembly (NASS) and the attendant impact on budget passage was reviewed.
The report also deals with the Macroeconomic Framework. It noted the fact that the targets on economic growth, inflation, interest rates, access to credit, external reserves and so on were missing but there was an attempt to cover these targets with an omnibus statement to the effect that the goal of low inflation, interest rates consistent with strong and sustained economic growth, a stable exchange rate reflective of real market conditions and a build-up in external reserves in the presence of high oil prices will be pursued.
The report observes that other macroeconomic indications provided were not in tandem with Vision 2020 and its First National Implementation Plan. This includes the sectoral composition of Gross Domestic Product (GDP), saying that the review of previous budget performance highlighted the poor implementation of capital budgets.
The group noted that the Revenue and Expenditure Framework showed a bias towards recurrent expenditure and the sources of funding the emergent deficit tilted towards domestic borrowing, which appeared to violate the provisions of the FRA.
Now, reviewing previous budget performance, the report said that the year 2010 witnessed a budget, an amended budget and two supplementary budgets with the following breakdown; recurrent (non-debt) expenditure of N2,669.01 billion; capital spending of N1764.69 billion; debt service of N542.38 billion and statutory transfers of N183.58 billion.
These represent 52 per cent, 34 per cent, 10 per cent and four per cent of aggregate expenditure respectively.
The revenue performance indicated higher than budgeted oil revenue (10 per cent). However, FGN share of oil revenue fell short by 6.95 per cent; aggregate share of VAT, CIT and Customs and Excise Duties fell short by 1.70 per cent. The hallmark of implementation was the travails of the capital budget, which utilised only N935.61 billion out of N1.765 billion.
The year 2011 also witnessed a budget and an amendment, bringing the aggregate expenditure to N4.485 billion detailed as follows; Debt Service of N495.1 billion; Personnel Cost of N1.503 billion; Overheads of N288.05 billion; Capital Expenditure of N1.148 billion; Pensions of N154.75 billion; Multi Year Tariff Order of N37 billion and other Service Wide Votes of N439.16 billion.
The percentage of capital budget in aggregate expenditure came down from 34 per cent in 2010 to 26 per cent in 2011. Oil revenues have so far met and exceeded targets but non-oil revenues have not met targets.
As if the reduced allocation to capital budget is not enough cause to worry, figures coming out from the First and Second Quarter 2011 Budget Implementation Report of the Budget Office of the Federation is worrisome, said the group. According to the report, as at June 30th 2011, the sum of N227.81 billion has been released, out of which N196.69 billion has been cash backed being 86.34 per cent of the released sum. Only N128.72 billion or 65.44 per cent of this sum has been utilised by Ministries, Department and Agencies (MDAs) as at June 30th.
Essentially, one would have expected the release, cash backing and utilisation of not less than N550 billion by the end of the second quarter. Thus, the sum so far utilised for capital expenditure, by June 2011 amounts to 11.21 per cent of the entire capital budget.
As at October 2011, the report from the Ministry of Finance indicates that 66 per cent of the capital budget has been approved for release while MDAs have utilised 57 per cent of the sum.
The Minister of State, Finance, Yerima Ngama stated that some MDAs failed to meet the conditions and financial regulations required for cash backing and as such could not secure the full amount of money approved to be released. In essence, 66 per cent of the sum of N1,148 billion amounts to N757.68 billion while the utilised 57 per cent of this sum comes up to N431.88 billion.
Essentially, what has been utilised is 37.62 per cent of the overall capital budget of N1.148 billion. This is too poor and cannot facilitate the realisation of Nigeria’s developmental goals.
The trend running between the two budgets is increasing oil production and revenue and poor capital budget implementation. While the first is positive for the development of the country, the second is negative for development.
Talking about the Monetary Policy Rate (MPR), which is currently at 12 per cent, thereby exceeding the implementation plans of six per cent over the medium term. The report said that with the MPR at 12 per cent, interest rates are high, thereby restricting the access of the private sector to credit needed to improve capacity utilisation in industries, expand production and create new jobs; it is important that the MTEF articulates the strategies for reviving access to credit to the real sector and encourage the financial system to perform its intermediation role at the least cost to the economy.
The need for this emphasised by available data which shows that credit to the private sector decreased from 1.92 per cent to 0.78 per cent between the third and fourth quarter of 2010. Year on year calculations as at December 2010 shows that credit to the private sector decreased by 4.92 per cent below the indicative benchmark of 31.54 per cent.
However, credit to government grew from 7.16 per cent to 7.28 per cent between the third and fourth quarter of 2010 and on a year basis, increased by 67.8 per cent. Accordingly, the full year Budget Implementation Report 2010 stated.
There is a projection on exchange rates, which puts the average naira dollar exchange rate at N153 throughout the period 2012-2015.
However, there is no analysis of how the MTEF arrived at that rate. Recent developments in the foreign exchange market have shown that this is not sustainable and the projection cannot be met.
The dollar currently exchanges at N154 at the official exchange rate while the black market rate is about N160 to the dollar.
“With our depleting foreign reserves, a depleted ECA, opposition by governors to the take off of the Sovereign Wealth Fund, import led economy and the unmitigated demand for the dollar, there is the likelihood of depreciation in the value o f the naira, which the CBN has even acknowledged,” said the report.
A new wave of ‘rash decisions’ in Nigeria’s aviation industry
Friday, 11 November 2011 00:00 By Wole Shadare Business Services - Business Travels
THE past one-week had been one of the most difficult periods for the Ministry of Aviation and British Airways.
Both are still embroiled in a very hot face-off over issues concerning Bilateral Air Services Agreement (BASA) and slot allocation for one of Nigerian’s flag carrier, Arik to land its Abuja-London flights in London Heathrow Airport.
This issue has torn friends apart. It has equally made people to research more on slots and BASA. It also calls to question the type of policies taken by policy formulators in the aviation sector in Nigeria.
There are commentators who felt that the government was right in the alleged hasty and rash decisions taken by the Ministry of Aviation to penalise BA over matters that concerns British authorities.
Others, however, carpeted the Minister of Aviation, Mrs. Stella Oduah-Ogiewonyi for her inability to have a fast- track understanding to grasp what aviation is all about. They equally berated her for her actions, which they said showed ignorance of the issues at stake.
Many claimed that while nationalistic blood flows in her vein, they reasoned that she over-reacted, explaining that the British Airways had at no time denied Arik landing rights at Heathrow as they tended to muddle up issue of slots and BASA. Many have also asked questions why slot arrangement was not introduced at the Lagos or Abuja airports: the answer is simple.
For busy airports, slots are not easy to come by, but for airports that lie fallow, slots are always readily available. The Airline Coordination Limited (ACL) on behalf of the British Airports Authority handles slot allocation in London. Slots may be bought directly from ACL or indirectly from their agents or those who already own slots. Naturally the secondary sellers sell at a higher rate.
British Airways we have come to know via the current debate also buy slots even in Heathrow like other airlines. Had Lagos had traffic as huge as Heathrow, the issue would become understandable. If it were, airlines like Lufthansa, BA, Virgin Atlantic, Air France, and Emirates could have said, “let us move to another international Airport” in Lagos to avoid paying huge sums for slots. People would still have gone to fly the airlines to their destinations.
There are more than three international airports in London alone apart from London Heathrow Airport. These are London Gatwick, London City Airport and Stanstead. Any of these airports could have served Arik’s Abuja-London operations. Infact, London city airport is closer to London than Heathrow airport and many big airlines, including BA operate out of the area to many cities in the United States.
BASA did not specify Heathrow but London. So, what is the cry over the matter and must one airline in the name of national interest bring down the whole roof? Whose national interest? But here in Lagos, there is only one international airport that has become relic and desperately crying for not “patch works” as disclosed by the new Managing Director of the Federal Airports Authority of Nigeria (FAAN), George Uriesi, but serious and total overhaul.
Owing to the high demand for London Heathrow slots, Airport Coordination Limited (ACL), an independent organisation that is responsible for slot allocation, scheduling facilitation and scheduling data collection, sells them. Slot allotments and auctions are therefore not the responsibility of the British Airports Authority, British Airways or the UK Department of Transport.
Looking at the scenerio objectively, Nigeria signed BASA with United Kingdom. The agreement entails that carriers from Britain: Virgin Atlantic and BA operate combine 21 frequencies to Lagos and Abuja, while Nigerian carriers wishing to operate to London were also entitled to the same number of flight right.
To break it down further. British Airways operates seven flights a week to Abuja and Lagos, accounting for 14 frequencies, while Virgin Atlantic operates to Lagos seven times a week, totalling 21 frequencies in all. How is it the fault of UK carriers if Nigerian airlines do not have the capacity to reciprocate? How does one atone for the sin of an uninterested player?
Aviation analyst, Olumide Ohunayo explained: “Our carriers should not only be willing but must demonstrate their ability to reciprocate our own side of the agreements by either operating directly or through a code share. Arik need to look inwards and address the perennial delayed departure and other operational lapses which ultimately affects arrival time, disrupt operational activities in slot constrained airports.”
For obvious reasons, no Nigerian carrier for now has the capacity to provide the type of first class services provided by these foreign carriers. The appalling services they provide on international routes are a matter for another day.
The Assistant Secretary General of Airline Operator of Nigeria (AON), Alhaji Muhammed Tukur said that he was shocked with the way the minister handled Arik’s complaints in a ministry where there were professionals who ought to advise on the right step to take, adding that the issue at hand had nothing to do with BASA, but that of slots allocation which he said was beyond British Airways as there was an independent agency handling that.
Tukur said that the minister ought to have referred the matter to the Nigerian Civil Aviation Authority (NCAA) that was the regulatory custodian of civil aviation matters and with technical experts already in place to handle, instead of creating and generating unnecessary controversies to the point of involving National Assembly members.
“Can you imagine a situation where BA or any other carrier in the United Kingdom taking Arik Air before the House of Commons or the House of the Lords over slots allocation. It can never happen. If the Department of Transportation (DoT) receives anything like that, you do not hear the Secretary of Transportation (an equivalent of our minister) coming to the public to make a fuss, but rather refer such to the UK CAA to handle,” he said.
Keshi’s Eagles get first win, beat Zambia 2-0
Wednesday, 16 November 2011 00:00 From Ezeocha Nzeh, Abuja Sport - Home
THE Uche brothers, Kalu and Ikechukwu, gave Nigeria’s new coach, Stephen Keshi, something to savour yesterday in Kaduna when they scored a goal each to lead the Super Eagles to a 2-0 defeat of Zambia.
Yesterday’s game against Zambia was Keshi’s second in charge of the Eagles and despite the flattering result, the former Togo coach must have been worried by the performance of his new charges.
In fact, Zambia had numerous opportunities to take the game, but poor finishing and some desperate defending by Super Eagles captain, Joseph Yobo, caused them the game.
The older of the Uche brothers, Kalu, got his goal just after nine minutes, when Fengor Ogude cut back a pass from speedster, Ahmed Musa, for the former Almeria of Spain star to finish.
Ikechukwu took the wind off the flying Chipolopolo’s sail in the dying minutes of the game to ease the tension on the Nigerian bench.
But the visiting Zambians, who controlled the midfield with TP Mazembe star, Rainford Kalaba in impressive form, have nothing to be ashamed off. Rather, they will continue their preparation for the 2012 Nations Cup assured that they have the boys to ruffle some feathers in Gabon/Equatorial Guinea.
At a time in the game, Zambia enjoyed 65 per cent of the possession as the Nigerian defence, which looked very confident and organised at the weekend against Botswana, was ran ragged by the nimble-footed Zambians for most part of this encounter.
Keshi gave Ugo Ukah and Nigerian league’s record goal scorer, Jude Aneke, their first starts for the Eagles.
Zambia would have equalised in the 37th minute when Kalaba’s shot from outside the box beat goalkeeper Vincent Enyeama in the 37th minute, but the ball also eluded the net to the relieve of the Kaduna fans.
Both teams made several changes in the second half, but it appeared the Zambians were the better with the substitutions with Clifford Mulenga, Isaac Chansa and James Chamanga joining the fray.
Chamanga, Chris Kotongo and the ever-lively Kalaba all had chances to draw Zambia level, but failed to do so.
Keshi’s Eagles get first win, beat Zambia 2-0
Wednesday, 16 November 2011 00:00 From Ezeocha Nzeh, Abuja Sport - Home
THE Uche brothers, Kalu and Ikechukwu, gave Nigeria’s new coach, Stephen Keshi, something to savour yesterday in Kaduna when they scored a goal each to lead the Super Eagles to a 2-0 defeat of Zambia.
Yesterday’s game against Zambia was Keshi’s second in charge of the Eagles and despite the flattering result, the former Togo coach must have been worried by the performance of his new charges.
In fact, Zambia had numerous opportunities to take the game, but poor finishing and some desperate defending by Super Eagles captain, Joseph Yobo, caused them the game.
The older of the Uche brothers, Kalu, got his goal just after nine minutes, when Fengor Ogude cut back a pass from speedster, Ahmed Musa, for the former Almeria of Spain star to finish.
Ikechukwu took the wind off the flying Chipolopolo’s sail in the dying minutes of the game to ease the tension on the Nigerian bench.
But the visiting Zambians, who controlled the midfield with TP Mazembe star, Rainford Kalaba in impressive form, have nothing to be ashamed off. Rather, they will continue their preparation for the 2012 Nations Cup assured that they have the boys to ruffle some feathers in Gabon/Equatorial Guinea.
At a time in the game, Zambia enjoyed 65 per cent of the possession as the Nigerian defence, which looked very confident and organised at the weekend against Botswana, was ran ragged by the nimble-footed Zambians for most part of this encounter.
Keshi gave Ugo Ukah and Nigerian league’s record goal scorer, Jude Aneke, their first starts for the Eagles.
Zambia would have equalised in the 37th minute when Kalaba’s shot from outside the box beat goalkeeper Vincent Enyeama in the 37th minute, but the ball also eluded the net to the relieve of the Kaduna fans.
Both teams made several changes in the second half, but it appeared the Zambians were the better with the substitutions with Clifford Mulenga, Isaac Chansa and James Chamanga joining the fray.
Chamanga, Chris Kotongo and the ever-lively Kalaba all had chances to draw Zambia level, but failed to do so.
Frazier was greater than ‘Rocky,’ says Jesse Jackson at Frazier’s burial
Wednesday, 16 November 2011 00:00 By Ayo Ositelu (with agency reports) Sport - Abroad
AFRICAN-AMERICAN Reverend Jesse L. Jackson, a Baptist minister, a renowned Civil Rights crusader and President of the Chicago-based PUSH (People United to Save Humanity), and one-time United States Democratic Presidential Election candidate, has called on the City of Philadelphia to honour their departed son, Joe Frazier by immortalizing the former world heavyweight champion’s name.
The legendary human rights campaigner, orator and former understudy and assistant to the Late Civil Rights campaign icon, Rev. Martin Luther King Jr, spoke at the funeral service of the Late Joe Frazier in a private funeral at the Enon Tabernacle Baptist Church in Philadelphia, where Frazier lived and practiced his trade (Boxing) despite having been born in Beaufort, South Carolina.
In a moving tribute, in which the man of God made a case for the City of Philadelphia to honour the legendary pugilist, he compared Frazier to a make-belief boxing movie legend, portrayed in such movies by star actor Sylvester Stallone, of whom there is a larger-than-life statue in the City.
“Frazier is bigger than Rocky, who is just an imaginary figure who never existed,” said Jackson. “Rocky never tasted his own blood. Rocky never faced Ken Norton. He never faced George Foreman. He never faced (Muhammad) Ali. He never faced Larry Holmes,” he added.
Continuing his glowing tributes on a man who made the City of Philadelphia famous in spite of the odds he faced while growing up in the ghetto and “projects”, Rev. Jackson said, “Joe paid real dues (unlike the Hollywood-made Rocky), and he is a guy who we can emulate because of his sense of family, an ordinary Joe, with extraordinary things.”
As many in the church tried unsuccessfully to fight back tears which welled in the faces of many friends, relations, and associates, Jackson continued in an emotion-laden but firm voice,” Smokin’ Joe remained our neighbour. He remained a church member. He remained a guy from the streets, so Philadelphia will honour itself by honouring him, and it’s better late than never.”
When Rev. Jesse Jackson was asked by reporters after the service how Frazier should be remembered, he replied: “As a great champion and a great humanitarian. A boxing champion because he won the gold medal, because he was the real world champion, which he did not inherit. He earned it.”
Despite the private nature of the burial ceremonies, the Church was packed full, and among those who attended to pay their last respect, included a host of boxing greats, like the legendary Muhammad Ali, with whom the climax of Frazier’s fighting career was intertwined. Others include Larry Holmes, and the quintessential boxing promoter, Don King, who screamed “I love Frazier!... I love Frazier!” as the casket containing the remains of the former world Boxing Heavyweight champion was leaving the Church for the burial grounds.
Another legendary boxing promoter, business magnate Donald Trump, actor Mickey Rourke, and “Iron” Mike Tyson, world Boxing Heavyweight champion (the youngest to win it and also the youngest to lose it), all sent videotaped messages of condolences.
Meanwhile, Frazier’s daughter, Renar Frazier-Martine, who is one of Frazier’s eleven children, said she would remember her dad “for always being there for his children, especially because when you have 11 kids, it’s hard. But he was always there for all of us, and the grandkids (24 of them) and family.”
During the service, Rev. Jackson, while making stirring remarks, asked fans to “stand and show your love” for Frazier.
Once during the 2-hour service, Muhammad, who has been unwell for quite some time, rose and vigorously clapped for his fallen friend. Wearing a dark suit and sunglasses, Ali held hands with close aids for support in and out of the church.
Frazier and Ali had squared off in a trio of legendary fights, including the “Thrilla in Manila” on October 1, 1975. Ali won that never-to-be-forgotten contest, calling it “the closest thing to dying that I know of.”
Frazier, who won an Olympic gold medal at the 1964 Tokyo Games, and later held the World Boxing Heavyweight crown from 1968-1973, may for ever be linked with Philadelphia, but he never forgot his roots in South Carolina. Friends say he built his strength stacking crates at the Coca-Cola plant and practiced his devastating left-hook on heavy bags stuffed with sand, rags, corncobs and moss on the family’s 10 acres of land.
Family friend John Trask said a service will be held this morning at Bethesda Christian Fellowship Temple on St. Helena Island with a public memorial service at noon (today) at Henry C. Chambers Waterfront Park in Beaufort, South Carolina.
Frazier died at 77.
One dies, 19 injured in Jigawa farmers, Fulani clash
Wednesday, 16 November 2011 00:00 From John Akubo, Dutse News - National
A CLASH between farmers and Fulani nomads in Kirikasama Local Council Area of Jigawa State has left one person dead while 19 others sustained various degrees of injuries.
The incident occurred at Matara at a time the government has taken some far-reaching measures such as demarcation of cattle routes, opening up grazing reserves and encouraging interactions between farmers and pastoralists to check clashes.
Lamido Saleh, a Fulani chief, told The Guardian that the farmers took measures to protect themselves against the perennial destruction of farmlands and attacks by the Fulani pastoralists.
He said the attempt to guard their farm produce was as a result of the inability of the security operatives manning the area to protect them from the attacks.
Wednesday, 16 November 2011 00:00 By Yetunde Oyegbami-Ojo News - National
THE yearly legal week of the Ikorodu chapter of the Nigerian Bar Association (NBA), which began last Thursday, ends on Friday, November 18.
It gives members a chance to give back to their community, identify the various problems ravaging the country and proffer lasting solutions.
Chairman of the association, Kazeem Adebanjo and Chairman of the Law Week Committee, Akin Duyilemi, at a press briefing held at the Bar Centre, Ikeja High Court, Lagos, condemned the structure of the polity at present, describing it as lopsided and called for a change to ensure that things are done correctly to prevent the disintegration of the country by 2015.
To prevent this, the association will reassess the nation’s democracy, which it describes as perilous in a bid to identify the teething problems and proffer solutions.
ACN backs govt on air service pact with Britain
Wednesday, 16 November 2011 00:00 Editor News - National
THE Federal Government’s insistence on full respect for the Bilateral Air Service Agreement (BASA) between the country and Britain drew support from the Action Congress of Nigeria (ACN) yesterday.
In a statement in Lagos yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, the party specifically hailed the way the issue had been handled by the Aviation Ministry, which responded to the shabby treatment meted out to Nigeria flag carrier, Arik Air, in Britain.
“If British airlines must fly to Nigeria unhindered, under the framework of the BASA between the two countries, then Nigerian airlines must fly to Britain without hindrance. Any move to the contrary is an attempt by one party to gain an unfair advantage over the other and must be resisted”, it said.
ACN added: “The explanation by the Minister of Aviation that the face-off between the two countries is more about respecting the spirit and letter of the BASA between them, than any other consideration, gladdens our hearts, as it shows that Nigerians, as well as the country’s corporate citizens, can be sure that their government will stand up to defend their rights when necessary.
“This is in consonance with what our party has always said: That the government must stoutly defend Nigerian citizens at home and abroad, to ensure that their dignity is not trampled upon anywhere. This is the only way our country and its citizens can stand tall in the comity of nations”.
The party said the government must not relent in its on-going efforts to ensure that Nigerian airlines flying into Britain were not shortchanged and also use the opportunity presented by the development to carry out a holistic review of the Bilateral Air Service Agreements entered into with other countries, with a view to ensuring full respect for such pacts.
It said at a time the Jonathan administration was “committing many unforced errors, to use a tennis parlance, due to poorly-conceived policies, the action of the Aviation Ministry represents what his government can achieve if it will only allow itself to be guided by the national interest”.
‘Ogun will be Nigeria’s agric hub’
Wednesday, 16 November 2011 00:00 Edior News - National
GOVERNOR Ibikunle Amosun of Ogun State has reiterated his administration’s determination to make the state a hub of agricultural produce.
“We have decided to go back to the basics and make agriculture our mainstay. Presently, we are clearing 1,000 hectares of land in each of the three senatorial districts in the state in partnership with private investors in order to take agriculture to the next level. We are poised to redefine agriculture in the state,” he said.
Speaking while receiving the Minister of Agriculture, Dr. Akinwunmi Ayo Adesina, in his Oke-Mosan office in Abeokuta, Amosun restated his government’s resolve to use agriculture to stimulate industrial revolution in the state, as was the case in the old Western Region.
“This is where we have the advantage. Agriculture means a lot to us in the state. We have the potential and we are willing to cooperate with appropriate authorities and strike genuine partnerships with private investors to create wealth and develop our state as a whole,” the governor added.
Earlier, the minister commended the governor for making agriculture a priority and putting in place good initiatives to facilitate development in the sector, saying “agriculture is very critical to the transformation agenda of Ogun State.”
Commission tasks SUBEBs on pupils with special needs
Wednesday, 16 November 2011 00:00 From Charles Akpeji, Jalingo News - National
THE Universal Basic Education Commission has decried the nonchalant attitude of some State Universal Basic Education Boards (SUBEBs) towards the provision of education for pupils with special needs.
Twenty-two of the 36 states of the federation were accused of refusing to access the special education funds that would have gone a long way to help pupils with special needs.
Piqued by this development, the Executive Secretary of the commission, Dr. Ahmed Modibbo Mohammed, admonished the affected States to as a matter of urgency take the right steps to provide the much-needed education for persons with special needs.
“The commission”, according to him, “is appealing to these SUBEBs to have a rethink because they have no reason whatsoever to shy away from accessing these funds for the children that need them to improve on their learning condition.”
He stressed the need for states that have successfully utilized their funds to proceed to invite the commission for verification in order to allow them access funds meant for the year 2011.
The observations were made yesterday by the UBEC boss, during the opening of the fourth quarterly meeting of the commission with the Executive Chairmen of SUBEBs nationwide in Jalingo, the capital of Taraba State.
Govt blames teachers for students’ failure in NECO, WAEC exams
Wednesday, 16 November 2011 00:00 From John Ogiji , Minna News - National
THE Ministry of Education has hinged the dismal performance of students at both the National Examination Council (NECO) and West African Examination Council (WAEC) examinations on the decline in the quality of teachers at the secondary school level.
Speaking in Minna yesterday at a three-day intensive workshop on item writing for junior secondary school teachers in the north central zone, the Permanent Secretary in the Ministry of Education, Prof. Nicholas Damachi said that the Ministry of Education had observed with dismay that the majority of teachers in public schools across the country did not possess the relevant competencies necessary for the implementation of continuous assessment, writing objectives and reliable and standardised test items.
“Most teachers in our schools are not grounded in the principles of test construction and a lot of teachers have poor knowledge of scoring and interpretation of test score and weak knowledge of last scores,” he said.
The permanent secretary who was represented by Mrs. Adeleye Ariba a deputy director in the ministry, pointed out that as a first step to address this ugly trend, the Ministry of Education had put this workshop in place to enable secondary school teachers nationwide to acquire skills in item writing in core subjects like mathematics , English and basic science.
Nicolas maintained that the workshop became necessary because the capacity building of teachers was one of the highest priorities on the agenda of government in the current reform in education.
He further disclosed that the aim of the workshop was among other things, to build the capacity of secondary school teachers and train them in item writing to improve the quality of assessment instrument in order to ensure a uniform standard nationwide.
Mimiko denies plan to dump LP for PDP
Wednesday, 16 November 2011 00:00 From Niyi Bello, Akure News - National
ONDO State Governor Olusegun Mimiko has debunked insinuations that he is preparing to decamp from his Labour Party (LP) and move to the People’s Democratic Party (PDP) which he defeated in the 2007 elections.
The governor is alleged to be planning to contest the 2013 governorship poll in the state on the platform of the PDP.
Speaking through Kayode Akinmade, the Ondo Commissioner for Information in Akure yesterday, Mimiko, who floated the LP in the wake of his dumping the PDP in 2003, said his dream was to nurture the LP to a party of great influence in the country.
In a statement the commissioner yesterday said there was no iota of truth in the rumour that Mimiko was planning to dump the LP, saying nothing could be farther from the truth as the governor had no plan of doing so.
Rather than defecting to the PDP, Akinmade said Mimiko would remain in LP and help to build it to a formidable party that would continue to deliver dividends of democracy to the citizenry.
“The governor will remain in Labour Party and build the party. Nigeria is operating federalism and the people of Ondo State reserve the right to join any party of their choice,” he said.
Akinmade continued: “Our decision to support President Goodluck Jonathan in the last general election was based purely on our conviction that he could represent the interest of Nigerians better than other contestants.
“We would continue our bottom-up approach strategy based on our caring-heart agenda to implement programmes and policies aimed at bridging the gap between the rich and the poor.
“Our commitment to the ongoing urban renewal and transformation of our local communities would make Ondo State not only a model for Nigeria but for the African continent.”
Akinmade therefore urged the people of the State and Nigerians in general to disregard the alleged bid by Mimiko to defect, noting that those who wanted to cause confusion using falsehood and propaganda were peddling the rumour.
EFCC arraigns U.S.-based Nigerian lawyer over fraud
Wednesday, 16 November 2011 00:00 aBy Joseph Onyekwere News - National
THE Economic and Financial Crimes Commission (EFCC) yesterday arraigned a United States-based Nigerian lawyer, Ephraim Emeka Ugwuonye, before Justice Christopher Balogun of Lagos High Court for allegedly stealing $94, 948 belonging to his client, Sola Adeyo.
Ugwuonye was arraigned on a two-count charge of stealing and fraudulent conversion of $94,948 property of Sola Adeyo while acting as his attorney.
The charge sheet stated that sometime in 2007 within the Lagos jurisdictional district, Ugwuonye allegedly received $94, 948 from Adeyo while acting as his private attorney and refused to give the money back to him.
The accused person was also accused of converting the money to his personal use contrary to Section 383 of the Criminal Code Laws of Lagos State, Nigeria.
Effort by the defence counsel, Mr. Bamidele Aturu, to move his bail application was rejected by Justice Balogun who said there were so many contending suits before him and so, would not hear the bail application.
Insisting on the bail of his client, Aturu informed the court that Ugwuonye has been in EFCC’s custody since October 24, 2011.
But EFCC counsel, Festus Afeiyodion urged the court to fix the suit for trial, adding that the commission had already filed an objection to the bail application.
In his ruling, Justice Balogun fixed hearing in the bail application for tomorrow while the substantive issue would be heard on January 24, 2012.
He ordered that Ugwuonye be remanded in EFCC’s custody. Ugwuonye is also facing a similar charge before a Federal High Court in Abuja for allegedly defrauding the Federal Government of Nigeria $1.550 million. The crime was committed in the United States.
Agents of the State Security Services (SSS) arrested Ugwuonye last month at the Murtala Muhammed International Airport in Lagos.
He had been on the “watch list” of EFCC after federal officials concluded that he had a case to answer in a series of real estate transactions with the Nigerian Embassy in Washington DC.
Indians to establish trauma centre in Benue
Wednesday, 16 November 2011 00:00 From Joseph Wantu, Makurdi News - National
DIRECTOR General of the National Agency for Food and Drug Administration and Control (NAFDAC), Dr. Paul Orhii, has disclosed that the proprietress of Primus Hospital in India plans to establish a trauma centre in Benue State.
He made the disclosure last Saturday while conducting the Chairperson of the hospital, Dr. Achla Dewan, round facilities at the Lessel General Hospital in Ushongo Local Council Area of the state.
Orhii and the visitor were accompanied by the Benue State Commissioner for Health and Human Services, Dr. Orduen Abunku.
“They’re interested in seeing how they can help us in Benue State. They are thinking about how they can set up a trauma centre. We decided to come and report to the Commissioner for Health in the state so that we can work out the way forward”, Orhii said.
He commended the commissioner for taking special interest in the Lessel General Hospital by posting qualified workers there, saying Primus Hospital is one of the premier hospitals located in the diplomatic centre of New Delhi, India, where many Nigerians go for medical tourism.
Speaking with journalists, Dr. Dewan stated that her hospital was exploring ways of assisting in the area of training.
On his part, Abunku disclosed that he was discussing with Dewan and Orhii on manpower development and equipment supply.
In her remarks, a medical doctor at the hospital, Dr. Amaka Onuekwusi, said: “Training would make us better qualified to offer better services”.
Wednesday, 16 November 2011 00:00 Editor News - National
Abayomi, others on prerogative of mercy panel
PRESIDENT Goodluck Ebele Jonathan has approved the appointment of Mr. Reginald Chika Stanley as the Executive Secretary of the Petroleum Products Pricing and Regulatory Agency (PPPRA).
Also, the president yesterday inaugurated the reconstituted Presidential Committee on the Prerogative of Mercy, reassuring Nigerians that his administration had initiated “a very rapid and robust process” to enhance the capacity of the country’s security forces to protect lives and property.
A member of the committee, Mr. Tunji Abayomi who responded to the President’s remarks, pledged their commitment to service.
Stanley, who is currently the Group General Manager in charge of the Nigerian National Petroleum Corporation’s New Business Development Division is to replace the incumbent Executive Secretary, Mr. Goody Chike Egbuji.
Mr. Osten Oluyemisi Olorunsola replaces Mr. Andrew Obaje as the Director of the Department of Petroleum Resources (DPR). Olorunsola is currently the Vice President (Gas) at Shell Upstream International.
Wednesday, 16 November 2011 00:00 By Chika Goodluck-Ogazi News - National
NATIONAL Association of Aircraft Pilots and Engineers (NAAPE) president, Isaac David Balami, yesterday said that the dispute that led to the grounding of Air Nigeria’s operations nationwide on Monday, has been resolved.
Speaking to journalists at the Murtala Muhammed Airport Lagos, Balami noted that the safety issue the association was talking about was on the welfare package of the workers, which cannot be ignored.
“Well all I have to say is that the issue between NAAPE and Air Nigeria has been resolved and their aircraft are now flying, they started flying today at about 9, 10 O’clock this morning,” he stressed.
He added that the Minister of Aviation, Princes Stella Oduah, had intervened in the matter, while the management of Air Nigeria had agreed to look into the issues with immediate effect.
Wednesday, 16 November 2011 00:00 Editor News - National
UNITED Bank for Africa (UBA) Plc has expanded its activities with the launching of a new savings promo through which customers win various cash prizes.
The “Lion King Savings Promo,” the sixth in the series of savings campaign embarked upon by the bank since the emergence of the consolidated UBA is open to existing and new customers. It will feature 23 Weekly draws, a Grand Draw and a Super Grand Draw with a total of 1,038 customers to be rewarded.
To qualify for the Lion King Promo Grand Draw, existing customers are to make a one-time minimum fresh deposit of N10,000.00 in their account or build it up gradually into an existing savings account for at least 30 days before each draw date.
For both new and old customers, all they need do is to make a one-time minimum fresh deposit of N25,000 and maintain same for a minimum of 30 days to qualify for both the Weekly Draw and the Grand Draws. The more a customer saves, the higher the chances of winning; every multiple of fresh N10,000 or N25,000 saved, increases the customer’s chances of winning. The promo will run for a period of six months with subsequent rollover option for another period of seven months, from June 1, 2012.
Wednesday, 16 November 2011 00:00 From Lawrence Njoku (Enugu) and Adeyinka Adedipe and Taiwo Gbadamosi (Benin-City) with agency report News - National
A STRIKE by Power Holding Company of Nigeria (PHCN) workers in some parts of the country has paralysed its operations.
THE Lagos/ Ogun Chapter of National Union of Electricity Employees (NUEE) yesterday said that its members decided to go on strike to protest the deployment of soldiers to PHCN facilities.
Chairman of the chapter, Mr Mbang Etukube told the News Agency of Nigeria (NAN) in an interview in Lagos that the protest would continue until the directive was reversed.
``This is another way of dealing with workers by engaging soldiers to take over PHCN facilities,” he alleged.
The Chief Executive Officer of Ikeja Electricity Distribution Zone, Mr Chris Akamnonu, said official notices should have been given to the management in the zones before the strike.
PHCN General Manager (Public Affairs), Mrs Efuru Igbo, however, said the workers in Abuja were not on strike.
Wednesday, 16 November 2011 00:00 From Iyabo Lawal, Ibadan News - National
THE Oyo State government yesterday ordered the streamlining of its over 118 accounts in the various banks across the state as part of effort to entrench a culture of transparency in its finances.
The Commissioner for Finance, Adedeji Adelabu who gave the directive during a meeting with regional heads of all the banks, said the government would no longer operate more than one type of bank account in all the banks and urged the financial institutions with government accounts to adhere strictly to the directive or forfeit such accounts.
Oil firm, community feud over teenager’s death
Wednesday, 16 November 2011 00:00 From Chido Okafor, Warri News - National
THE death of a teenage girl identified as Emuobonuviie in a pipeline pit belonging to the Nigeria Gas Company (NGC) at Jedo, near Warri, Delta State has pitched the community against the firm.
The girl said to be 13 years old was believed to have accidentally fallen into the pit and drowned. Her body was found 24 hours after she was declared missing by the parents.
However there are suspicions surrounding the death of the girl as unconfirmed sources said she might have been killed and deposited there by her assailants.
The NGC has promised to investigate the incident to unravel the circumstances that led to her death.
Jedo community residents said the girl died because of the poor safety record of the firm handling the job, arguing that the ditch was left unguarded and without safety warning.
Appeal Court to reconsider Chime’s bid for time extension
Wednesday, 16 November 2011 00:00 By Joseph Onyekwere News - National
GOVERNOR Sullivan Chime of Enugu State has got the nod of the Court of Appeal, Lagos to consider an extension of time within which to file his brief of argument in his appeal challenging the judgment of Justice Kazeem Alogba of a Lagos High Court.
The lower court had dismissed Chime’s suit against the Labour Party (LP) gubernatorial candidate in Enugu state, Chief Okechukwu Ezea and The Guardian newspapers.
The court resolved to consider in the Chambers, the request of seeking for enlargement of time.
At the resumed hearing of the appeal, the appellate court presided over by Justice Helen Ogunwumiju stated that since the appellant’s application for extension of time was not challenged by the respondent (Ezea), the court would consider it in chambers and communicate its decision to parties.
Chime had instituted N1.5 billion libel suit against his opponent in the 2007 gubernatorial election, Chief Ezea and The Guardian newspapers.
But, in his judgment, Justice Alogba dismissed the suit and awarded a cost of N100, 000 against the applicant (governor) in favour of the two defendants. The court also held that the actions of the defendants were not defamatory.
In his statement of claim filed by his counsel, Dr. Gbolahan Elias, Chime accused Ezea of addressing a press conference on or about August 11, 2007, attended by numerous representatives of the press in Abuja, where he allegedly accused Chime of wanting to kill him.
The governor averred that his personal and leadership reputation had been seriously damaged, adding that he had suffered considerable distress and embarrassment.
He, therefore, demanded N1billion as damages from Ezea and N500, 000 from The Guardian, being damages for alleged libel contained on page seven of the newspaper dated August 14, 2007.
The governor had to travel to Lagos on two different occasions to testify in the suit he filed before the Lagos High Court.
Under cross- examination by Ezea’s counsel, Dr. Joseph Nwobike (SAN), Chime informed the court that the hostility between him and Ezea was not because the defendant challenged his election as governor of Enugu State.
The governor stated that Ezea ceased to be his friend the moment he addressed the alleged press conference, adding that he had also deleted his telephone number.
However, Ezea, through Nwobike, contended that the alleged publications referred to by the claimant were not injurious, adding that the governor deliberately sponsored them.
He denied the allegations contained in the statement of claim, arguing that he did not utter or publish any defamatory material against the governor and that if at all the claimant was defamed, he caused defamatory material to be published against himself to score cheap political popularity.
Petroleum varsity workers protest alleged invasion by police, others
Wednesday, 16 November 2011 00:00 From Chido Okafor, Warri News - National
THERE may be no end yet to the crisis rocking the Federal University of Petroleum Resources (FUPRE), Effurun, Delta State as the Academic Staff Union of Universities (ASUU), Senior Staff Association of Nigerian Universities (SSANU) and Non Academic Staff Union (NASU) have protested what they called an invasion of the campus by armed youths and the police.
The school’s registrar, Dr L.O. Onwuka, who was sent on terminal leave by the Governing council, yesterday stormed the institution with police men to enforce an alleged directive from the Ministry of Education asking her to resume work.
Earlier on Monday, the university’s Vice Chancellor, Prof. Babatunde Alabi was alleged to have stormed the school with armed youths and military personnel to enforce the ministry’s directive.
When The Guardian visited the school yesterday, its administrative building was under lock and key.
The Federal Ministry of Education had in a letter dated November 10, 2011, allegedly signed by the acting Permanent Secretary, Mrs. K.M Lawal, reinstated Alabi, and Onwuka who had proceeded on accumulated leave as approved by the Governing Council of the University on October 18 , 2011.
The school’s ASUU’s Chairman and Secretary, Dr. Akpofure Rim Rukeh, and Dr. Duke Okoro, addressed journalists yesterday in Warri on the crisis . They said the school had been deserted following threats to life and property over the unlawful reinstatement of Alabi, who allegedly invaded the school premises with armed youth and police to force his way back to the office under the purported directive by the of Federal Ministry of Education.
Also, in a separate protest letter signed by the NASU’s Chairman and Secretary, Adidi Daniel and Yusu Ibrahim, they directed a work to rule action to ensure the safety of lives and property of their members.
They also vowed not to resume work until the Ministry of Education withdrew its alleged directive and asked Alabi to obey the decision of the Governing Council.
But in a chat with Onwuka yesterday, she said she resumed work only to discover the whole place locked up.
Nigeria, Britain shift grounds in BASA row
Wednesday, 16 November 2011 00:00 By Wole Shadare and Chika Goodluck-Ogazi (Lagos) and Joke Akanmu (Abuja) News - National
THE on-going high-level negotiation between the Federal Government and British Authorities over the review of the Bilateral Air Service Agreement (BASA), is yet to yield much dividends.
But the Nigerian government and the British Authorities yesterday reached a compromise with respect to the high fares charged by British Airways (BA) and associated regional imbalance in the airline’s operations.
Consequently, the airline made an offer of a 20 per cent reduction in the lowest Business Class fare between Nigeria and the United Kingdom (UK).
Meanwhile, The Nigerian Civil Aviation Authority (NCAA) has filed a report to the Ministry to compensate Nigerian passengers the sum of $235 million for what it described as unfair method of compensation.
In an 11-page report dated November 14, 2011, the NCAA stated: “After investigation spanning approximately half a year, British Airways and Virgin Atlantic Airways violated Nigerian law, exploited Nigerian consumers and have remained adamant about whether those consumers should be compensated”.
The report further stated that the airlines periodically increased passenger fuel surcharge against Nigerians.
According to a statement by Special Assistant on Media to the Minister of Aviation, Joe Obi, the two countries held high-level negotiations, which yesterday and this morning. These discussions “are still on-going.”
Obi said the Nigerian side considered British Airways’ offer to review the high fare and associated regional imbalance “insufficient” and that the discussions would continue, as “the Nigerian government is still very concerned about the regional price disparity.”
The statement read: “We still strongly believe that this regional imbalance should be dismantled. In other words, BA should offer the same or similar fares from Nigeria to the UK as is the case in any other equidistant destination within West Africa.
“The British authorities requested to be given an opportunity to carry out an independent study of the regional pricing disparity in the UK/Nigerian aviation market. We expect the conclusion of this study by the end of the year to facilitate a conclusion on the subject.”
He disclosed that with respect to slot at Heathrow airport, seven slots per week from Abuja have been secured for Arik Air at prevailing commercial rates.
Obi added: “As you are aware, the Federal Airports Authority of Nigeria(FAAN) is renovating and upgrading their airports. These efforts will require a review of current slot allocations and additional funding.
“Towards this end, FAAN is considering applying commercial slot rates for slots into Murtala Mohammed International Airport in the spirit of Bilateral Air Service Agreement.”
According to the statement, “the Nigerian flying public is advised to make wise choices about which airlines they fly as regards the pricing of their tickets”.
However, the Aviation Ministry of Aviation assured “Nigerians that their interests with regard to safety, security, comfort, service and affordability will remain our priority.”
Aviation Analyst, Olumide Ohunayo, said fuel surcharge was introduced by airlines across the world to cushion the effect of high cost of aviation fuel.
He said it was always difficult to prove that BA and Virgin Atlantic perpetrated a fraud on the flyers in Nigeria, stressing that the only way they could be penalized “is if the surcharges are beyond the $50 they are expected to charge.”
Assistant Secretary-General, Airline Operator of Nigeria (AON), Muhammed Tukur, said even on domestic routes, Nigerian airlines increased airfares and introduced fuel surcharge to cushion the effect of rising cost of aviation fuel.
Tukur lamented that the aviation sector in Nigeria was being put into serious crisis as a result of “policy somersault”, which he said “would not do the sector any good.”
Women protest against delay in passing bill on eliminating discrimination
Wednesday, 16 November 2011 00:00 From Ann Godwin, Port Harcourt News - National
WOMEN groups in Port Harcourt, the Rivers State capital under the aegis of Women Voices Network (WOVON), yesterday staged a protest over the delay in passing the Convention on the Elimination of Discrimination Against Women (CEDAW) Bill by the National Assembly.
They regretted that 32 years after Nigeria endorsed CEDAW, it has not been domesticated, saying it is a deliberate attempt by government to make women, even those in decision-making positions, to continue to face discrimination and relegated to the background.
“We see the delay in the passage of the CEDAW bill as a deliberate act by government. Government seems to lack the political will to ensure gender mainstreaming in all legislations and national policies,” they said.
Spokesperson of the protesters and Programme Director, Gender and Development Action, Mrs. Deborah Effiong, wondered why the Nigerian government ratified it if it cannot implement it.
“Nigeria is one of the 185 countries that have ratified the United Nations’ CEDAW. So, why did the Nigerian government ratify it if it knows it will not implement it,” she queried.
According to her, the CEDAW bill is to provide legal frame-work for equal participation of women in national issues when domesticated.
Stressing that the benefits of effective integration of women into the economy and partisan politics to contribute to national development remains a paramount issue, she, however, admitted that the lawmakers expressed reservation on some sections of the bill.
Although she praised the present administration for appointing women to some key ministerial positions, she lamented that women’s contributions within the Legislative and Executive arms of government still remain a minority view.
“WOVON is concerned that in spite of government’s efforts to create mechanisms for women’s political empowerment, women’s contributions are not prioritised, women’s voices still remain unheard, women continue to face limited access to power, resources and opportunities; women continue to face stereotypes; women are not considered for certain committees/offices,” she added.
The groups expressed disappointment over the step-down of CEDAW bill by the National Assembly after passing through the second and third readings respectively.
They further urged the government to develop and enhance women’s capacity in leadership and politics.
“We want government to implement laws that provide for women’s participation in politics and decision-making, reposition and empower gender machineries as critical structures for expanding space and opportunities for women in decision making,” they added.
PDP governorship aspirants disagree on Bayelsa ward congress
Wednesday, 16 November 2011 00:00 From Mohammed Abubakar, John-Abba Ogbodo (Abuja), Kelvin Ebiri (Port Harcourt) and Willie Etim (Yenagoa) News - National
Jonathan not behind crisis, says aide
‘Sylva not barred from leaving Yenagoa’
THE crisis in the Bayelsa State chapter of the Peoples Democratic Party (PDP) is deepening as five aspirants seeking the party’s ticket for the primaries this weekend have called for the cancellation of last Monday’s delegate election.
However, Seriake Dickson, who seemed favoured in the arrangement, had immediately after the delegate election called a selected press briefing, stating that the ward congress was peacefully conducted.
In an interview with reporters in Abuja yesterday, the Presidential Adviser on Political Affairs, Ahmed Ali Gulak, also denied that the President has any role in the crisis brewing in the Bayelsa PDP.
Besides, the Bayelsa State Governor, Timipre Sylva and the police, have denied an allegation that the governor was barred by security operatives from leaving his official residence in Yenagoa.
Chief Press Secretary to the Governor, Doifie Ola, said that the report, published in one of the dailies (not The Guardian), was a mere fiction aimed at misleading the public.
Ola, who spoke to The Guardian from Abuja, explained that the governor left Yenagoa on Monday for the federal capital without any incident.
According to him, the governor, who enjoys immunity under the 1999 Constitution of the Federal Republic of Nigeria, could never have been harassed or interrogated by any security personnel.
The Bayelsa State Police Public Relations Officer, Eguaveon Emokpae, expressed shock at the report.
“How can security personnel bar a sitting governor from leaving the Government House? How can that happen? I am not aware,” he said.
In a petition by five out of the seven cleared aspirants, they call on the National Working Committee of the party and President Goodluck Jonathan to immediately suspend Dickson and also disqualify him from contesting the election.
In a three-page petition, the five aspirants, namely Christopher Fullpower Enai, Boloubo Orufa, Austin Febo, Chief Francis Amaebi Doukpola and Fred Korobido Ekiyegha, are particularly unhappy that materials for the election were found with Seriake Dickson and at the Kpansia residence of one of his agents, Diekivie Ikiogha.
They also expressed regret and surprise at the level of corruption by public officers, saying those officials from Abuja only came to manipulate the election in favour of Dickson.
Lawmakers lament non-payment of jumbo loans by agric bank
Wednesday, 16 November 2011 00:00 From Saxone Akhaine, Kaduna News - National
MEMBERS of the Senate Committee on Agriculture yesterday expressed concern over alleged non-payment by the Bank of Agriculture (BOA) of jumbo loans disbursed to politicians and other influential Nigerians, standing over N12 billion.
The legislators who were at the corporate office of BOA in Kaduna yesterday, as part of their oversight functions, pledged to ensure that the National Assembly do everything possible to recover the unpaid loans and also revolutionise the activities of the bank in order to redress the mounting problems of the agricultural sector in the country.
Speaking after a meeting with the management of BOA and members of the Senate Committee on Agriculture, the chairman, Emmanuel Bwacha, told journalists that “we as a committee are essentially charged with the responsibility of intervening, particularly legitimately where it becomes necessary,” pointing out that the level of indebtedness and unpaid loans recorded by the Bank of Agriculture is alarming and that something must be done to tackle the situation.
Bwacha argued: “One thing we have come to understand in the bank is that there is no sufficient stringent measures in place to ensure 100 per cent recovery of loans. Like any other commercial bank, this bank ought to operate or adopt measures in recovering loans.”
The Senate Committee chairman explained that some influential Nigerians took advantage of the lapses in the policies of the BOA in securing huge loans as farmers and never to repay, promising that the National Assembly would ensure that those who took the loans and did not pay back are brought to justice.
Besides, the Executive Director, Business Development of BOA, Alhaji Waziri Ahmadu, who received the Senate committee, said the bank has not been able to meet its challenges of granting farmers loans because of shortage of funds. According to him, the total application for loans stood at over N42 billion while the bank has been making frantic efforts to recover the unpaid loans of over N12 billion.
Ahmadu said: “The position of the bank has been like this over the last few years, and the bank has not invested adequately in loan recovery. It is true that some loans were given to influential people in the society and these loans have been looked upon as their share of the national cake, and no much effort was made in the past in recovery.
“Until today, we have about N12 billion standing out there as loans unpaid. This management sees this reserve of unpaid loans as money we should recover completely. But there are difficulties with a number of them. Some, you find out that when they were disbursed, they were not properly secured.”
He disclosed that the bank has resolved to prosecute those who have refused to pay back loans, pointing out that a good number of them were already in court.
“We are already in court with most of the people that had jumbo loans. In some cases, we have received judgment in our favour and there have been appeals too. As to those loans at the macro level, we are pursuing the strategy we can adopt to get them back,” he said. Some of the bank loans, he noted, “were granted to borrowers that are industries and were victims of Federal Government policies.”
“There is a company, for instance, that borrowed money from us and immediately after disbursement, the government changed its policy on agricultural import and the company suddenly found itself on the receiving end. That company owes us a lot of money,” Ahmadu noted.
Tuesday, 15 November 2011 00:00 From Iyabo Lawal, Ibadan News - National
THE former Chief Judge (CJ) of Oyo State, Justice Timothy Ayorinde, has passed on. The eminent jurist died in Ibadan on Sunday at the age of 79.
According to one of his children, Chief Bolaji Ayorinde (SAN), the former public servant died during a brief illness.
The younger Ayorinde said burial arrangements would be announced by the family later.
While eulogising his father for a life well spent, the SAN and erstwhile Pro-Chancellor of the Ladoke Akintola University of Technology (LAUTECH), Ogbomoso, said: “Justice Ayorinde was my father, my friend and my mentor. I was devastated when he passed away. But I am thankful to God that he lived a fulfilled life. I am also grateful in that he achieved a lot in his lifetime as a family and a public person. We shall miss him a lot”.
Ebonyi to benefit from $21m Canadian lifeline
Tuesday, 15 November 2011 00:00 From Leo Sobechi, Abakaliki News - National
EBONYI is among the 13 states in the country to benefit from a $21 million lifeline for healthcare provided by the Canadian International Development Agency (CIDA) towards scaling down the increasing rate of maternal and child mortality and morbidity.
A CIDA official in Nigeria, Mr. Joseph Sebhatu, disclosed this when officials of the project implementation committee paid a courtesy visit to the wife of Ebonyi State Governor, Mrs. Josephine Elechi, at the Government House, Abakaliki.
Sebhatu disclosed that already, a national steering committee to be co-chaired by the Federal Ministry of Health and the Head of Development Corporation in CIDA has been set up.
According to him, benefiting states including Abia, Imo, Ebonyi, Lagos, Ogun, Benue, Akwa Ibom, Cross River, Kaduna, Kebbi, Sokoto, Borno, Gombe, Adamawa, Bauchi and the Federal Capital Territory (FCT) are members.
Unity Bank’s facility for BRT buses hits N981.1m
Wednesday, 16 November 2011 00:00 Editor Business Services - Business News
THE Managing Director of Unity Bank Plc, Mr. Ado Wanka recently said that the bank had financed the purchase of BRT buses to the tune of $6.3 million (N981.1 million).
Wanka said this during the celebration of Unity Bank Day at the ongoing 2011 Lagos Trade fair.
He said that the bank also provided another N215 million to ensure the buses were cleared from the port, registered, kitted and have parking spaces.
According to him, “in this way the bank was participating in the Lagos State Government’s efforts to make Lagos a Mega City.”
“Let me remind us of peculiar challenges of transportation in Lagos. Simply put, movement in Lagos can be tricky.
“That is why Unity Bank financed the purchase of 100 42 seater buses by HFZ Transport Services at a cost of $6, 330,000.
“Moreover, to ensure port clearance, proper vehicle registration, kitting and provision of parking spaces for the buses we also provided a further financial outlay of N251, 000,000.
“In this way, we are participating in the steps being taken by the administration of Governor Babatunde Fashola to reshape Lagos into a model city of the 21st century,” he said.
Wanka said that the bank would continue to partner with the government to transform Lagos positively, adding that that was demonstrated by its participation in collection of Internally Generated Revenue (IGR).
He said that the bank had 36 branches in Lagos and 18 in Kaduna parading latest Information Technology infrastructure, adding that that underscored the importance, which the bank attached to Lagos.
He said that the bank was the first to implement the Oracle 11g on Banks’ Application Software.
The managing director said that the bank’s latest products included Unity BetA, Unity PAYS, and Unity Holy Trip.
He added that Unity BetA, empowered small business and entrepreneurs to grow their businesses while Unity PAYS, provided customer opportunity to buy valuable assets like generator sets and machines.
He also said that Unity Holy Trip, provided opportunity for customer to save for pilgrimage and features BTA allowance and 50 per cent credit facility.
The President of Lagos Chamber of Commerce and Industry (LCCI), Mr. Femi Deru, commended the bank for having over 5, 000 people in its employment.
He said that this made them the largest employer of labour, adding that they should keep it up and work hard to meet its quest of being the highest capitalised bank in 2016.
Ford launches Focus 2012, new promo scheme
Wednesday, 16 November 2011 00:00 Editor Business Services - Business News
FORD Motor Company, a global automobile maker, has launched its Ford Focus 2012 in Nigeria.
The company also launched an initiative known as Ford Focus Relay Challenge to create awareness on the car, which was paraded as environment-friendly.
Speaking at the launch, the General Manager, BrisccoeFord, Oseme Oigiagbe, described the car as a green technology, given its environment-friendly, adding that “the feeling can only be experienced.”
According to a statement from the company, the 2012 Ford Focus engine has a powerful 2.0-liter fuel-efficient four-cylinder engine, with dual independent variable valve timing cam and direct fuel injection, which delivers 16-kilometre/L on highway, certified by the Environmental Protection Agency, among other immense and great features of the car.
The statement added that “the challenge is all about building excitement and spreading the word about the arrival of the all-new Ford Focus in Nigeria”.
The Managing Director of Exp Marketing Nigeria Limited, the organisers of the challenge, Wole Olagundoye, explained that the challenge started with 841 persons that registered, which was whittled down to eight persons after passing through various stages.
The eight persons that emerged included Ayodeji Anthony Oyinlola, a business development professional; Munachiso Ezenwa Okereke, a banker; Babatola Ademilua, an engineer’ Isioma Nkechinyem Okeleke, a media planner; Anabara Stanley Nnamdi, a logistics manager; Adefemi Adekunle Aladelua; and Mpi Elizabeth Azuka, educationist. These were grouped into four, through random selection that journalists participated in.
The final stage of the relay challenge will commence November 19 and run for four weekends, when the star prize winners of the cars will emerge.
Olagundoye said the challenge Give Your Friends a Ride; and Lagos Road Rally Challenge, which would mark the end of the challenge.
The public was therefore, encouraged to join any of the four groups at Facebook.com/FordNigeria, as there are prizes to be won by members of the public who participated in the challenge.
Engineers back govt’s road fund scheme
Wednesday, 16 November 2011 00:00 From Nkechi Onyedika, Abuja Business Services - Business News
THE nation’s engineers have endorsed the recent move by the Federal Government to establish a Road Fund, as another source to finance road maintenance in the country.
They also canvassed the establishment of road maintenance agency in each of the states.
In a statement at the just concluded ninth National Civil Engineering Conference, the Registrar, Council for the Regulation of Engineering in Nigeria (COREN), Felix Atume, stressed the need for the nation’s civil engineers to play a leading role in advising the authorities on infrastructural development projects from conception to actual implementation.
According to Atume, civil engineers, through Nigeria Institution of Civil Engineers, should take up the challenge of monitoring all civil engineering projects across the country, as well as reporting their findings to government at regular intervals.
He observed that the transformation agenda of the Federal Government would be achieved if critical infrastructure like water supply, adequate housing, efficient transportation system and good road network is provided for the citizenry.
Atume stated however, that these could only be realised through civil engineering and the engineers who are instrumental to the socio-economic development of any given nation.
The COREN Registrar also commended the Minister of Works, Mike Onolememen, for constituting a committee to carry out the desired reforms in the Road sector as practiced elsewhere in the world.
Atume expressed optimism that the proposed reform would go a long way in addressing the issue of road maintenance in the country, since all the conventional approaches to road management seem not to have produced the desired results.
IFAD tasks Nigeria, others on agric
Wednesday, 16 November 2011 00:00 Editor Business Services - Business News
THE International Fund for Agricultural Development (IFAD) has urged President Goodluck Jonathan and other Heads of State and Governments in West and Central Africa to
implement the 2003 Maputo Declaration.
The declaration was adopted by African leaders to boost agricultural development on the continent.
It urged the leaders to allocate 10 per cent of their national budgets to the agricultural sector in their respected countries.
The Head, Partnership and Resource Mobilisation of the United Nations agency, Mohamed Beavogui, made the call in Libreville, at the opening of the sixth IFAD Regional Forum.
The forum was organised jointly by IFAD and the Ministry of Agriculture, Livestock, Fisheries and Rural Development of the Republic of Gabon.
Beavogui, who is also the Senior Advisor to the IFAD President, Dr Kanayo Nwanze of Nigeria, said fulfilling the implementation was imperative as half of the population in the region depended on agriculture for their livelihood.
He traced the food crisis that occurred in 2007 and 2008 on the continent to the drastic decline in agricultural investment and financing, leading to increased food insecurity.
He said that with the world population hitting seven billion mark, massive agricultural investment was imperative and that global food production ought to be increased by 80 per cent to meet the needs of the estimated nine billion global population by 2050.
According to him, agriculture remains the best solution to resolve hunger in the region and the best source of employment to about 60 per cent of its population.
He called for innovative solutions to address the challenges impeding agricultural development in the region.
Beavogui also stressed the urgent need to improve the living standard of the rural population and to address the impact of climate change.
The UN agency representative further noted that in spite of the fact that women produced
about 60 per cent of the food, only 20 to 30 per cent of them had access to land.
He said that “whatever the size of a farm, it should be seen not just as a private economic activity but as business that progresses from production to processing, marketing and to commercial venture.
“The small farmers are part of the solution to poverty alleviation and agriculture opens the way to the creation of wealth.’’
The Gabonese Minister of Agriculture, Livestock, Fisheries and Rural Development, Raymond Sima, had declared the forum open.
He underscored the importance of making a proper diagnosis of the problem of agriculture in the region in order to find solutions to them.
Sima also stressed the need to ensure that people of the region had access to food as well as making agriculture contribute more to the GDP of countries in the region.
He said that agriculture was strategic in the development agenda of the Gabonese government and expressed its readiness to support the IFAD mandate of addressing the needs of the poor.
Theme of the forum is “Making Small Farms in West and Central Africa MoreProductive and Profitable.”
The five-day event attracted participants from all the countries in the region as well as the private sector, farmer organisations and development partners.
Reps meet airline body over aviation sector’s crises
Wednesday, 16 November 2011 00:00 By Wole Shadare Business Services - Business News
NCAA begins investigation on Air Nigeria’s grounding
IN what may not be unconnected with crises in the aviation industry, House of Representatives Committee on Aviation has invited Airline Operators of Nigeria (AON), umbrella body for Nigerian airlines for a meeting. The meeting takes place today at one of the meeting rooms of the House of Representatives.
Meanwhile, the Ministry of Aviation, the Nigerian Civil Aviation Authority (NCAA), top officials of Air Nigeria, members of the National Association of Aircraft Pilots and Engineers (NAAPE) are also meeting over the issues that lead to the grounding of Air Nigeria’s operations on Monday by the union.
In a letter written to all members of the group, dated November 14, 2011, Chairman of AON, Dr. Steve Mahonwu, noted they were yet to recieve the agenda for the meeting.
He urged the operators to arm themselves with various essentials of their operations.
The assistant scribe of the body, Alhaji Muhammed Tukur, said most likely to top agenda for the meeting is the controversy over the Bilateral Air Services Agreement (BASA) row between UK and Nigeria.
Many are divided over whether the Ministry of Aviation took the decision to penalise British Airways over matter that the airline had no input. .
While some applauded the ministry’s action, others were of the opinion that the ministry mixed up the issues of slots and BASA.
The AON had equally faulted a section of an advertorial by an airline which stated that the flag carrier should secure the 21 slots of the country’s BASA pending the entry on the London route by another Nigerian carrier.
The AON scribe argued that doing so makes it very difficult for a new entrant on the route to be allowed to share the frequencies from the airline that is keeping it for the country.
Tukur decried the messy situation he said is playing out, adding that there are more bigger problems for the industry in the future.
Spokesman for NCAA, Sam Adurogboye, told The Guardian that the minister summoned them to Abuja to know what actually went wrong in respect of the Air Nigeria space.
He explained that the authority had already set up a committee to look into the matter, by raising inspectors to investigate the matter.
According to Adurogboye, “it is the outcome of the committee that will inform action on the airline if found culpable.”
The NAAPE had grounded the airline’s entire operations, alleging that the engineers had no tools and spares to work with, including lack of manpower, poor pay package, delayed salary and interference in maintenance programmes by the chief executive among several allegations.
AGAT introduces aluminium products
Tuesday, 15 November 2011 00:00 By Roseline Okere Business Services - Business News
APEX Global Aluminium Technologies (AGAT) Limited, an indigenous aluminium manufacturing industry, was at the just concluded Lagos International Trade Fair with its array of products.
The company’s products exhibited at the fair include Aluminium Longspan Roofing sheets; Aluminium Step Tiles Roofing sheets; Sliding; projected and casement windows; Partitioning of profiles and fly/insect screen, Sliding, swing and hinge doors; Curtain walls; Ridges and angles; Gutter flashings; Facial claddings; Barge board and Mill finish Aluminium coils of various gauges.
Speaking with The Guardian at the trade fair arena, the Marketing Manager, Kayode Adegunwa, stated that the company has the capacity to meet the aluminium needs of its customers in Nigeria.
He stated: “We manufacture aluminium for residential, commercial and corporate use and we are directly responsible for many of the beautiful buildings you see around the country.
He disclosed that the Standards Organisation of Nigeria (SON) has awarded AGAT Limited a Certificate of Excellence in recognition of the quality of their Longspan Aluminium Roofing Sheets.
Adegunwa said that the company also specialises in roofing installation, aluminium colour coating services, importation and sales of aluminium coils and accessories, supply of equipment and plant as well as consultancy on aluminium engineering.
He disclosed that the company is in the process of establishing more plants in some states in Nigeria.
He identified inadequate power supply as one of the challenges facing the company.
Adegunwa noted: “We recognise the effort of the government towards solving electricity challenge in Nigeria. Once this problem is solved, we will be able to produce at a lower rate.”
How to sustain global travel industry’s growth, by forum
Tuesday, 15 November 2011 00:00 From Wole Shadare, London Business Services - Business News
THE travel industry needs to become more forward thinking if it is to survive the tests thrown at the future.
With the industry predicted to explode in numbers as the Chinese and Indian markets emerge, the industry is advised to be better prepared to cope with the numbers and protect the destinations.
Leo Hickman, journalist and author of ‘The Final Call’, which examined the trade’s attitudes to responsible tourism and sustainability, who was on the hot seat for World Responsible Tourism Day for this year’s WTM, the leading global event for the travel industry, gave the charge.
According to him, “I can’t emphasise enough how little evidence there is about what people are doing for the future. To me, that is indicative of an industry that totally lives in the present, it doesnt look to the future. It is incredibly short term thinking, to totally believe everything is going to be hunky dory”.
He explained that to sustain that growth, travel companies all have their responsibilities, adding that there were going to be some big decisions needed to be made.
“If the industry is to preserve itself, it has protect the people and the natural habitats in the destinations. The industry needs to be more honest with itself, there are some very potent examples of bad practice”.
He stated that of all the industries that he had studied, tourism, he said, “is the more guilty of green wash.
He equally said journalists had a role to play in asking more difficult questions of the travel industry to ensure it is doing everything it can to protect the very product it sells.
However, Hickman admitted this will be difficult in practice due to the expense in sending reporters on trips which means they are mostly paid for by the travel industry and which compromises the journalist’s objectivity.
“If you pick up any of the travel supplements, newspapers or travel magazines, it is simply advertorial. Because it is such an expensive business, the industry has to be the gatekeeper. You have to end this practice, otherwise you are not going to be impartial”.
In a related development, delegates for were told that governments need to do more to help the travel and tourism industry maximise its power to help the poorest people on the planet.
Fiona Jeffery, Reed Travel Exhibitions Director World Travel Market, told the 500 senior travel executives that attended the event on the opening day that travel and tourism, supported by governments, must strengthen their efforts; stressing that more need to actively get involved, not just pay lip service to something which is now deemed fashionable.
But she also acknowledged that companies need to balance profit against the values and principles of prudent corporate social responsibility.
According to her, malnutrition, poverty and a lack of clean drinking water form a vicious circle, in which children who survive their early years are denied the chance to educate themselves out of deprivation as a result of continued poverty and family needs.
“The (travel and tourism) industry is perhaps better placed than most to make a vital contribution in the fight against these complex issues,” Jeffery said.
The discussions scheduled for WTM’s World Responsible Tourism Day’s programme across three days would touched on “painful stuff” and that there was “no place for the niceties of life, for patting ourselves on the back.”
NDIC recovers N22b debts, seeks AMCON’s assistance on secured loans
Tuesday, 15 November 2011 00:00 By Bukky Olajide Business Services - Business News
THE Nigeria Deposit Insurance Corporation (NDIC) has made a cumulative debt recovery of N22.2 billion out of N179 billion for the banks in liquidation between 1994 and August 2011. It also recovered N8.3 million from the closed microfinance banks (MFBs).
The Managing Director, NDIC, Ibrahim Umaru made this disclosure while briefing newsmen on the activities of the corporation in Lagos at the weekend.
He lamented the pace of debt recovery, stressing that apart from appointing some debt collectors, there are discussions with Asset Management Corporation of Nigeria (AMCON) for the disposal of some secured debts of the closed banks.
According to Umaru, the cumulative insured deposits paid in the 35 banks in-liquidation stood at N3.3 billion out of N5.24 billion, representing about 63 per cent, also the cumulative liquidation dividend paid to the depositors and other claimants of the affected banks was N6.16 billion out of N16.85 billion, representing about 37 per cent, adding that 12 of the banks had declared a final dividend of 100 per cent of total deposits.
He disclosed that shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank, which were closed before 2006 had received liquidation dividends of N1.28 billion as at July this year, adding that the corporation has also paid about N20 million out of N804.35 million to depositors of Fortune Bank and N1 million out of N45.36 million for depositors of Triumph Bank, which were closed in 2006.
Umaru noted the NDIC had paid an aggregate sum of N2.02 billion to about 69,000 depositors of the 103 microfinance banks, which had their operating licenses revoked in September last year, stating that it represents about 41 per cent of total insured amount of about N4.94 billion.
The NDIC boss stated that the establishment of the corporation has generated the required stability and confidence through its activities, noting that the scheme is faced with many challenges, which include inability to recover liquidated banks’ loans through the courts, wrong public perception and weak corporate governance on the part of operators, among others.
Fidelity Bank receives ISO 27001 certificate
Tuesday, 15 November 2011 00:00 Editor Business Services - Business News
FIDELITY Bank Plc has formally been presented a certificate confirming that it has fulfilled the necessary requirements and has subsequently joined the only 10 companies in Africa whose information management system has become ISO 270001 compliant.
In a colourful ceremony where ISO 27001 certificate was presented to the bank at Eko Hotel Lagos, Theuns Kotze, Managing Director, British Standards Institute (Europe, Middle East and Africa) described Fidelity Bank as one of the best companies that have successfully carried out the process mapping and compliance tests that lead to the issuance of ISO 27001 certificate.
According to him, ISO 27001 is one of the most difficult International Organisation for Standardisation (ISO) certificates to attain, as there are not more than 5,000 ISO 27001 certified companies worldwide.
“There are 10 companies in all of Africa that have so far been ISO 27001 certified and less than 20 companies from both Africa and the Middle East. Fidelity Bank ranks among the best that has ever done the exercise in recent years”, Kotze declared, pointing out that it takes at least two years for companies to prepare themselves for the certification process.
“In the last two years of this exercise, Fidelity has not only gained knowledge but also the skills and competence in information management. Fidelity’s customers and business partners should be proud of this achievement”, Kotze observed.
Explaining the steps that led to the achievement, Reginald Ihejiahi, MD and CEO of Fidelity Bank Plc revealed that it was part of a strategic board decision taken over three years ago to adopt the Information Security Management System (ISMS).
Interswitch drives policy with promo, rewards customers
Tuesday, 15 November 2011 00:00 By Faith Oparaugo Business Services - Business News
TO SUPPORT the cashless policy of the Central Bank of Nigeria (CBN) and encourage Nigerians to adopt card as a means of payment, Interswitch has rewarded 14 customers at the on-going Verve Get and Win promo.
Speaking at the Interswitch Verve Get and Win promo in recently in Lagos, Director, Payment Solutions at Interswitch, Mr. Charles Ifedi, said that the promo is specifically designed to encourage and reward Nigerians who comply with the CBN cashless policy.
According to him, the promo as a means of encouraging existing and new cardholders to embrace the cashless culture prior to commencement of the policy.
He noted that the promo also provides a window of opportunity for existing Verve cardholders to participate in the draw.
“This is how it works: new cardholders request the Verve card at the bank and collect an instant gift. Once that is done, the cardholder should activate the new card in order to qualify for the draw. Existing Verve cardholders would need to carry out five transactions with their cards on ATMs, PoS, Web or mobile channels on the Interswitch network every two weeks in order to qualify for the draw.”
He explained that Verve cardholders could qualify for the draw either by activating a new card or by using an existing card to carry out five transactions every two weeks.
Interswitch drives policy with promo, rewards customers
Tuesday, 15 November 2011 00:00 By Faith Oparaugo Business Services - Business News
TO SUPPORT the cashless policy of the Central Bank of Nigeria (CBN) and encourage Nigerians to adopt card as a means of payment, Interswitch has rewarded 14 customers at the on-going Verve Get and Win promo.
Speaking at the Interswitch Verve Get and Win promo in recently in Lagos, Director, Payment Solutions at Interswitch, Mr. Charles Ifedi, said that the promo is specifically designed to encourage and reward Nigerians who comply with the CBN cashless policy.
According to him, the promo as a means of encouraging existing and new cardholders to embrace the cashless culture prior to commencement of the policy.
He noted that the promo also provides a window of opportunity for existing Verve cardholders to participate in the draw.
“This is how it works: new cardholders request the Verve card at the bank and collect an instant gift. Once that is done, the cardholder should activate the new card in order to qualify for the draw. Existing Verve cardholders would need to carry out five transactions with their cards on ATMs, PoS, Web or mobile channels on the Interswitch network every two weeks in order to qualify for the draw.”
He explained that Verve cardholders could qualify for the draw either by activating a new card or by using an existing card to carry out five transactions every two weeks.
Oyo to identify genuine cassava farmers ahead of FG’s package
Tuesday, 15 November 2011 00:00 Editor Business Services - Business News
AHEAD of the assistance from the Federal Government’s Cassava Revitalisation Programme, the Oyo State Government plans to identify genuine farmers of the crop, the News Agency of Nigeria (NAN) reports.
The state’s Chairman of the Cassava Growers Association (CGAN), Muyideen Adekunle, said on Thursday at Eleekara village near Oyo town that the identification exercise was based on the request from the association.
He said the association’s request was also to demonstrate its high level of commitment to supporting the Federal Government’s revitalisation initiative.
Adekunle said that CGAN would set up committees to liaise with state governments across the federation in order to identify genuine cassava farmers to benefit from the expected government assistance.
He also said that the association had its group farms in six locations in the state, adding that these were apart from those belonging to individual members.
Adekunle said six cassava plantations owned by the association and billed to be inspected by officials of the Oyo State Agricultural Development Programme (OYSADEP) were at Koomu, Ogbomoso, Fasola and Ilora while two were at Iseyin.
“We are ready to partner with the state government in ensuring that we meet its requirements and ensure that the cassava revitalisation programme of the Federal Government becomes a reality in Oyo State,’’ he said.
Adekunle further said that a total of 44 local cassava groups were in the state under the umbrella of CGAN, adding that the Federal Government had been assisting cassava growers in the South-West.
He pointed out that while Oyo had the highest number of cassava growers in the zone, it had not benefited much from government’s initiative to support cassava farmers.
Adekunle urged members of the association to support the current revitalisation programme.
He said: “Let us show commitment so that government will take us seriously and help us as we plan to go further by adding value through processing.
‘’An OYSADEP official invited to the meeting, Mr Simeon Adeniyi, assured the farmers of government’s support once the investigation was concluded.
Adeniyi said that the present administration in the state was sincere in its agricultural development programme.
He, however, said government would only give assistance to groups and not individual farmers.
Some of the members, who spoke at the occasion, expressed their readiness to cooperate with OYSADEP officials on government’s plan for the verification exercise.
Nigeria remains investment-friendly despite challenges, says Jonathan
Tuesday, 15 November 2011 00:00 Editor Business Services - Business News
PRESIDENT Goodluck Jonathan has assured the international community of a friendly investment environment in spite of the present security challenges in the country.
Jonathan, who gave the assurance on Thursday in Abuja at the 17th National Economic Summit, said the country remained the greatest investment destination.
He said the present security challenges in the country were temporary, adding that government would continue to tackle them.
``This is a temporary disenchantment, and as you know this is new to us, but we are doing everything possible to tackle it.
``Anybody who does not want to invest in Nigeria because of Boko Haram sect will regret it later.’’
Jonathan, who chaired the Presidential Debate section alongside some foreign investors, said terrorism was global issue and was not peculiar to Nigeria.
He said that in spite of its limited equipment, the State Security Services (SSS) had done very well, adding that many of the Boko Haram sect members had been arrested.
The president gave assurance that government would continue to provide basic infrastructure that would enable the security agencies to do their work better.
In his speech, Mr. Daniel Zelikwo, Global Head, JP Morgan International, said it was in the interest of investors to understand the situation in Nigeria.
He said that understanding the situation would go a long way in encouraging partnership with the Nigerian Government.
Zelikwo said Nigeria was not the only country that had security challenges, and urged the Federal Government to ensure that adequate measures were put in place to tackle the menace.
Also speaking, Alhaji Aliko Dangote, the president of the Dangote Group of Companies, said that in spite of security challenges, Nigeria remained an investment friendly destination.
He said that any investor that invested in Nigeria would not regret it, adding ``no country gives export incentive like Nigeria, and if I have $20 billion, I will invest it all in Nigeria’’.
Dangote said that three sectors - agriculture, petrochemical and mining had the potential to grow like the oil sector.
The theme of the summit is ``Attracting Foreign Direct Investment through Global Partnership’’.
Capitalisation challenge: Insurance firms hold merger talks
Tuesday, 15 November 2011 00:00 By Joshua Nse Business Services - Business News
THERE were indications that underwriting companies in the nation’s insurance industry have commenced discussions on mergers and acquisitions of entities as a remedy to the continuous diminution of the capital base of operating firms.
The measure may have been informed by plans of the National Insurance Commission (NAICOM), to axe undercapitalised companies in the industry.
The Guardian gathered at the weekend that the merger talks were necessitated by the market meltdown, particularly in the capital market, which was said to have wiped out the gains of the 2007 recapitalisation exercise in the insurance industry.
As a result, the capital base of a number of the existing underwriting entities had dropped below the regulated N3 billion for non-life business and N2 billion for life business.
For instance, the Chairman, Linkage Assurance Plc, Babatunde Fatayi-Williams, told shareholders of the company at the 17th yearly general meeting in Lagos yesterday that “as a result of the harsh and unfriendly economic and financial climate, your company has had to explore alternative means, initiated merger talks with a reputable insurance company for the purpose of building capacity, increasing market share and providing value for our shareholders.”
A leading industry chieftain who spoke on condition of anonymity, explained that equity losses in the capital market had eroded investors’ confidence, necessitated a drop in demand for insurance products by insuring public and pushed insurance stocks to their par value.
Regrettably, he lamented that the investment income of the underwriting firms running into billions of Naira were eroded, and the companies were yet to wriggle out of this challenge.
According to him, mergers and acquisitions are the only survival options for a number of existing insurance companies to take because the tough regulatory measures introduced by NAICOM two years ago demanding full disclosure, transparency and accountability from insurance entities also exposed the unethical practices that had been going on in the operation of insurance business in the country.
He said: “The new regulatory steps by the commission affected insurance institutions to the extent that nearly half of the underwriting companies cannot file their 2010 financial returns and accounts to NAICOM for approval.
“It is a fact that many of the existing companies are having serious financial problems as it affected capitalisation of their operations, and the option open for them is to merge their operations as an escape route for survival in the current reforms in the insurance industry.”
Obama to China: Behave like ‘grown up’ economy
Tuesday, 15 November 2011 00:00 Editor Business Services - Business News
PRESIDENT Barack Obama served notice on Sunday that the United States was fed up with China’s trade and currency practices as he turned up the heat on America’s biggest economic rival.
“Enough’s enough,” Obama said bluntly at a closing news conference of the Asia-Pacific Economic Cooperation (APEC) summit, where he scored a significant breakthrough in his push to create a pan-Pacific free trade zone and promote green technologies.
Using some of his toughest words yet against China, Obama, a day after face-to-face talks with President Hu Jintao, demanded that China stop “gaming” the international system and create a level playing field for U.S. and other foreign businesses.
“We’re going to continue to be firm that China operate by the same rules as everyone else,” Obama told reporters after hosting the 21-nation APEC summit in his native Honolulu. “We don’t want them taking advantage of the United States.”
China shot back that it refused to abide by international economic rules that it had no part in writing.
“First we have to know whose rules we are talking about,” Deputy Director-General at China’s Foreign Ministry, Pang Sen, said.
“If the rules are made collectively through agreement and China is a part of it, then China will abide by them. If rules are decided by one or even several countries, China does not have the obligation to abide by that.”
Even as Obama issued the veiled threat of further punitive action against China, it was unclear how much of his tough rhetoric was, at least in part, political posturing aimed at economically weary U.S. voters who will decide next November whether to give him a second term.
Obama insisted that China allow its currency to rise faster in value, saying it was being kept artificially low and was hurting American companies and jobs.
He said China, which often presents itself as a developing country, is now “grown up” and should act that way in global economic affairs.
The sharp words between the U.S. and China contrasted with the unified front that Asia-Pacific leaders sought to present with a pledge to bolster their economies.
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