How I ‘died’ and came back,by Patience Jonathan

From Isa Abdulsalami (Jos), Ali Garba (Bauchi) and Njadvara Musa (Maiduguri)(With agency report)

GUNMEN on the prowl inthe northern part of the

country at the weekend kid-napped seven foreign work-ers and killed a guard.The police authorities con-

firmed the development yes-terday. Two Lebanese, anItalian and a Greek have beenconfirmed by their govern-ments to be among thoseseized in the attack late Satur-day on a Setraco constructionsite in the town of Jama’are inBauchi State.Bauchi, among the states innorthern Nigeria where BokoHaramhas carried out repeat-ed attacks, saw two separategun attacks earlier Saturday,but it was not clear if thegroup was behind the week-end violence.“From the report we have re-ceived, the hostages are sevenin all. They include fourLebanese, an Italian, a Britonand a Greek,” Bauchi State po-lice spokesman Hassan Auyosaid.There has been no confirma-tion that a Briton was amongthose kidnapped or that the

IT was an open admission of asecret that was kept from thepublic until yesterday as thewife of the President, Dame Pa-tience Jonathan, finally ownedup on her health situation.She disclosed that she was inGermany for medical treat-ment, telling worshippers atthe Aso Rock Chapel, Presiden-tial Villa, Abuja, that she actu-ally died but “God woke me upafter seven days.”

Mrs. Jonathan confirmed thatshe went through about nineoperations within one month,adding that even some of heraides gave her up for dead.Some of the aides, she lament-ed, not only leaked the rumourof her death, but also sold offsome of her personal items.

Mrs. Jonathan, who did notspeak on the details of the ill-ness, explained that “it was notan easy experience for me. I ac-tually died. I passed out formore than a week. My intes-tine and tummy were opened.I am not Lazarus. But my expe-rience was similar to his. My

doctors said all hope was lost.It was God himself in His infi-nite mercy that said I wouldreturn to Nigeria. God wokeme up after seven days.“I remember when Chief

(Olusegun) Obasanjo was thePresident of the country. I wasclose to his late wife, Stella. We

worshipped together in this(Aso Rock) chapel. It was apainful moment for me thattime when she died and herbody was brought here. Thatwas how my body would havebeen brought here.“I know that some people

somehow rumoured that I wasdead. They are people that Itrust and rely on. To them, I wasdead and I would never return

to the country alive. Some ofthem even sold my things off. Iwon’t say everything here. It isthe Lord’s doing that I re-turned alive. When God saysyes, nobody can say no.“People are always afraid ofoperation (surgery) but in myown case, while my travail last-ed, I was begging for it(surgery) after the third opera-tion because I was going to thetheatre everyday. It was Godwho saw me through. I did

DISTURBED by a possible ve-to of the 2013 budget by

the National Assembly, thePresidency has directed theAttorney-General of the Fed-eration (AGF) to furnish itwith legal advice on the provi-sion of the constitution onthe application of veto power.This came as the House of

Representatives said at theweekend that the ultimatepower to define the actualand final size of the country’sbudget was with the NationalAssembly.

Speaking through the Chair-man of its Committee on Ap-propriation, John Eno, at theweekend, the House ruled outthe possibility of taking thePresidency to the SupremeCourt on the 2013 budget bill. Also, the Presidency yesterdayexplained its position on someof the contentious issues inthe budget which have de-layed its signing. These issuesinclude constituency projectsinjected into the budget by thelegislators and the reduction

in the personnel estimatessubmitted by the Executive.At a press conference in Abujaat the weekend, the Chief Eco-nomic Adviser to the Presi-dent, Dr. Nwanze Okeidegbe,said that in the interim, the Ex-ecutive and Legislative armshad reached an understand-ing on how governmentwould continue to functionpending the resolution of thecontentious issues and subse-quent signing into law of thebudget bill by the President.

He spoke on some of the con-tentious areas: “ I want to startby stressing that PresidentGoodluck Jonathan wants tosign the 2013 budget as soon aspossible if our discussionswith the National Assemblylead to a resolution of certainkey issues. Remember that theExecutive submitted thebudget to the NASS in October2012. Nigerians were very hap-py about this because it was arefreshing difference from thedelays we had got used to. We

worked very hard to achievethis. So, we definitely wantbudget implementation to be-gin as soon as possible so thatNigerians can start enjoyingthe many benefits in the budg-et“The NASS returned the budg-et in December 2012. Upon re-view by the Executive, somegrey areas were identified andneeded to be resolved. Sincethen, we have been working inpartnership with the NASS toresolve the issues around thebudget. The President wantsthe issues resolved in a man-ner that will protect the best

interest of the Nigerian peo-ple. He supports a collabora-tive approach in thediscussions with the NationalAssembly.“We don’t want the currentsituation surrounding thebudget to degenerate into animpasse because Nigerianswant results not disagree-ments. That is why we haveasked the Attorney-General ofthe Federation to furnish uswith legal advice on the con-stitutionality of a veto and itsapplication.

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TheGuardianwww.ngrguardiannews.com

Conscience, Nurtured by TruthMonday, February 18, 2013 N150Vol. 29, No. 12,471

Presidency seeks AGF’s advice on right of veto by lawmakers• Reps insist on ultimate powers over budgetFrom Azimazi Momoh Jimoh

and Mathias Okwe, Abuja

From Madu Onuorah and TsokarKarls, Abuja

Pastor Ayo Oristejafor (left) praying for President Goodluck Jonathan (third left), wife, Patience (second right) and children, during Patience’s thanksgiving service at the State House, Abuja…yesterday. PHOTO: PHILIP OJISUA

Gunmen kidnap sevenforeigners, kill guard

• Undergoes nine surgeries abroad

Why APGA cannot join APC, by Obi - Page 5

2 NEWS THE GUARDIAN, Monday, February 18, 2013

Patience Jonathan undergoes nine surgeries eight or nine operations with-in one month. It was not aneasy one.“The day I came back, I said

God I have nothing to say. I of-fer myself to you. I will be do-ing things that will touch thelives of the less-privileged. Godgave me second chance be-cause I reached there. He knewI have not completed the as-signments He gave me, thatwas why I was sent back.”President Goodluck Jonathansaid that the recovery of hiswife from the undisclosed “life-threatening illness” would putan end to the mystery of deathof a leader or spouse at the seatof power in Aso Rock.Jonathan, who spoke at the

Reps insist on ultimate powers over budget“There is an issue on con-

stituency projects which is onthe table and discussion is stillongoing and it is very difficultto give a definite answer onthe matter when discussionsare on-going but we are mak-ing progress in reaching un-derstanding andaccommodation on the issueson the table.“The overhead as passed by

the National Assembly is high-er than was submitted by theExecutive and again, we arehaving discussion andprogress is being made butnot fully resolved. On capitalvotes, there were some re-allo-cations. Some went up andsome went down and somewere removed, thus making itdifficult to implement. As a re-sult of that, we have pointedout those areas and both theNational Assembly and the Ex-ecutive are discussing with aview to resolving them.“There were differences in

what the Executive submittedin the votes for personnel andwhat came back from the Na-tional Assembly as the voteswere cut down. This has re-mained unresolved. It wouldbe difficult to pay salaries withthe personnel votes theypassed and this may lead to in-dustrial challenges. But as Isaid, we have been in discus-sion on it,” Nwanze said fur-ther.Insisting on the powers of thelawmakers over the budget,Eno said: “This issue has comeup before. The fact is that theparliament or the National As-sembly does not have any rea-son whatsoever to go to courtto seek interpretation. Wehave no doubt as to what ourpowers are. The Executive armis the arm of government thatdoubts those powers.“Under the late Yar’Adua, wegot to this point when he ac-tually tried to request that wego jointly to approach theSupreme Court for interpreta-tion. I remember then thatour answer was that theSupreme Court would not en-tertain that kind of thing.Somebody will need to... Oneparty will need to go to court.Two of us cannot go like that.Look, the issues are clear; theconstitution that says that ifMr. President does not assent,that the document can be-come law not requiring the as-sent of Mr. President anymore.What it means simply is thatthe final power rests with theNational Assembly.” Stressing further the powers

of the parliament over thebudget, the lawmakers said: “Ithink that what the House islacking really is the will towant to do what it should do. Ithink that it has to do with thelingering argument on whohas the powers over the budg-et. Whether it is the Executive,whether it is the National As-sembly. And until this is re-solved, perhaps this budgetrow will keep lingering on and

on.”He, however, dismissed as

false, reports that the leader-ship of the National Assemblyused his committee to padthe 2013 budget to realizeenough money for membersto fund their 2015 electioncampaigns.“Let me thank you very wellfor that question because itallows me to say whether aschairman of appropriation

committee of the House, theleadership has directed me toincrease the budget of anyMDA or not. At least I can speakfor myself even if I cannotspeak for any other chairmanof any committee. The talkabout the leadership direct-ing me to pad is not true be-cause I do not have suchpowers. Even if those powerswere there, I think for exam-ple, what we tried to do espe-

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number of Lebanese was four.“We are aware of reports and

are making enquiries with thelocal authorities,” the AgenceFrance Presse (AFP) quoted theBritain’s Foreign Office as say-ing. The Lebanese foreign ministrysaid two of its citizens wereamong those seized, while offi-cials in Athens and Rome con-firmed their citizens werekidnapped.

Bauchi’s police chief Mo-

hammed Ladan said a guardwas shot dead in the raid in Ja-ma’are, about 200 kilometres(125 miles) from the state cap-ital Bauchi city.Setraco Nigeria, a construc-

tion and civil engineeringcompany, is a subsidiary ofLebanese-owned Setraco In-ternational Holding group.

The Nigerian subsidiary,which was established in 1977,is currently working on ex-panding a major road innorthern Nigeria.The attack on the construc-

tion site came after the samegunmen were repelled whiletrying to storm a police sta-tion and a prison in the town,the police chief said.

Gunmen also launched a

kidnappers seize seven foreigners, kill guard in BauchiCONTINUED FROM PAGE 1

cially in the 2013 budget wouldhave made it impossible. Ihave already told you thatstanding committees becomesub-committees of appropria-tion committee during budg-et. “When the budget comes, wegive it to them to go and do.What they bring, the appropri-ation committee does nothave the powers to changethose budgets. Unless you are

saying that the leadership di-rects those standing commit-tees to do that padding. If it isme receiving that directive, Ido not have any power to padthe budget that has been sub-mitted to me by the standingcommittees. I do not have.Whatever becomes the budg-et is whatever the standingcommittees have done. So, theleadership that I find today,

thanksgiving and praise re-ception for the recovery of hiswife at the Banquet Hall, Presi-dential Villa, Abuja, expressedregret that insinuation of mys-tery of death at the Villa wasrife during his wife’s illness.The President expressed grat-itude to God for the life of Pa-tience, stating that “ifanything had happened, therewould have been different sto-ries from false prophets andmany other things would havefollowed. We all know we willall die but the best time to dieis not when you are servingyour nation. The story was thatone of us will die (President orFirst Lady), but today, we arecelebrating her. Her recoveryhas put an end to that belief. Iam not too good at celebra-

tions. But I think we have tothank God for keeping the lifeof my wife”.Jonathan used the opportuni-ty to caution against wordsand actions of Nigerians,which tend to divide the coun-try. “If you love this country,you will not talk about divi-sions. Even the little (crude) oilwe have is not enough to causedivision among us. This will bea particularly good year forNigeria. With what the SuperEagles have started, I believethings will start turningaround for our good.”It was the first admission ofthe extent of her illness.On her arrival from the med-ical treatment last October 17,Mrs. Jonathan claimed she didnot undergo any surgery at a

German hospital. She toldjournalists: “I don’t know thehospital they are even talkingabout, I did not do any tum-my tuck, my husband likesme the way I am.”Also at the service were theVice President, Namadi Sam-bo, Secretary to the Govern-ment of the FederationAnyim Pius Anyim, formerHead of State, Gen. YakubuGowon and state governors,widow of the late Head ofState, Maryam Abacha, wifeof former Head of State, Fati-ma Abubakar, wife of formerVice President, Titi Abubakar,members of the Federal Exec-utive Council, presidentialaides and top businessmen.Over 20 artistes also per-

formed at the ceremony.

Wives of former Heads of State, Maryam Abacha (left) and Fatima Abubakar, during the thanksgiving service at the State House, Abuja…yesterday. PHOTO: PHILIP OJISUA

similar attack on a police sta-tion in the town of Kafin Mada-ki, 40 kilometres (25 miles)from the state capital, trigger-ing a shootout, Ladan said,adding that “the attackers fledwithout causing any damage.”Boko Haram, a group blamedfor hundreds of deaths innorthern Nigeria since 2009,has claimed several attacks onpolice stations.Also, the Joint Task Force (JTF)in Yobe State has solicited thefull co-operation of residentsand other communities in thestate to end the Boko Haraminsurgency by providing“credible and useful” informa-tion on the hideouts of terror-ists and their activities. The solicitation for co-opera-

tion of residents was made yes-terday in a special letter by theJTF commander. The commander in the letter,

made available to reporters inDamaturu, said: “A time camewhen criminals and terroristsattempted to snatch this God-given freedom from you (resi-dents), but with theintervention and sacrifices ofJTF, relative peace and securityare now being experienced.This is however, not where wewant to be. We want Yobe Stateto return fully to her rightfulplace in the comity of states,where peace and securitythrives and you have the free-dom to undertake all lawful ac-tivities.”The security of lives and prop-

erty of residents, according toJTF spokesman, Lt. Lazarus Eli,can only be achieved whenresidents fully co-operatewith the security task force, byproviding “timely and usefulinformation and abide by laiddown rules and regulations.”The letter also reads in part:“Nobody has the right to de-prive your wife the right tohave her husband and yourchildren the right to havetheir loving father. Provide uswith information and we willstop them from achievingtheir evil plans. I am expectingyour calls on the followingtelephone numbers-07065066662, 07010482820,08098948202 and08098948158.”

THE GUARDIAN, Monday, February 18, 2013 3

4 NEWS THE GUARDIAN, Monday, February 18, 2013

FACTS on the alleged resig-nation of Ogun State At-

torney-General andCommissioner for Justice,Mr. Wemimo Ogunde, haveemerged. Ogunde, son of the late fa-

mous Theatre icon, HubertOgunde, was said to havethrown in the towel onWednesday February 6, 2013although Information andStrategy Commissioner, Al-haji Yusuph Olaniyonu, de-nied that he resigned.The Guardian learned that

the resignation was the cli-max of a series of disagree-ments between him andGovernor Ibikunle Amosunon issues bordering on the

commissioner’s profession-al responsibilities.A source said that on manyoccasions, Ogunde andAmosun had open disagree-ments over issues borderingon the former’s professionalcalling.But it climaxed on MondayFebruary 4 when he and thegovernor, according to thesource, had an open con-frontation over certain laws,which are being enforced inLagos “to be imported toOgun State.”The Guardianwas also toldthat attempts by the govern-ment to “farm out commer-cial and legislative drafting

jobs to ‘outsiders’ were al-ways frustrated by Ogundewho always insisted that theMinistry of Justice hasenough competent staffmembers to handle any gov-ernment job.”The source said that the gov-ernor had directed Ogundeto draft 13 of the Lagos lawsfor the Ogun State House ofAssembly’s approval so thatthe Abeokuta governmentcould enforce them.He mentioned such laws toinclude Land Use ChargeLaw, New Town DevelopmentLaw, Road Toll Law and Park-ing Scheme Law. But thesource said that the commis-

sioner had always arguedthat not all the laws in Lagoscould not be “importedwholesale to Ogun State be-cause the situations and envi-ronments in the two statesare different.“But the governor insisted

that the commissioner mustcarry out his directive,” saidthe source who stressed thatat the State Executive Councilmeeting on Tuesday February5, Amosun asked Ogunde ifhe had completed draftingthe said laws.

“He (Ogunde) stood hisground, arguing that not allthe said laws would be suit-able for the state,” the sourcestated.Ogunde was said to have ex-plained further that even

those laws that would be goodfor Ogun State, would needenough time to be properlydrafted since they affected thedestiny of human beings.

The source said thatOgunde’s answer did not godown well with Amosun “whobecame angry.”Ogunde was also said to havebecome enraged and whiletempers were still high, Amo-sun stormed out of the meet-ing. As soon as he left, Ogundealso packed his books andfiles and stormed out to thediscomfort of the other stateexecutive members.Ogunde was said to have sub-mitted his resignation letterthat Wednesday and left forLondon the following day(Thursday). The Guardian

confirmed this.The investigations showed

that the relationship betweenOgunde and Amosun had al-ways been unhealthy as theyhad “severally disagreed on is-sues.”Another source that spoke toThe Guardianbut also did notwant to be quoted said thatdue to the frosty relationshipbetween the duo, the Ministryof Justice was starved of fundsand the necessary facilities toenable him perform effective-ly.

Some lawyers who TheGuardian spoke to describedOgunde as a thorough bredprofessional.However, Olaniyonu told TheGuardian that Ogunde “hasnot resigned.”

Former Head of State, Gen. Yakubu Gowon (left), former Head of Interim National Government (ING), Ernest Shonekan and former Ghanaian President John Kufuor, during the First Lady, Pa-tience Jonathan’s thanksgiving service at the State House, Abuja… yesterday. HOTO: PHILIP OJISUA

Controversy trails alleged resignation of Ogun commissioner Ondo State Governor Olusegun Mimiko (left), his wife, Olukemi, and General Overseer, Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, during a ministration by Adeboyeon An Evening of Holy Ghost Rally at the Democracy Park in Akure…at the weekend.

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From Charles Coffie Gyamfi,Abeokuta • He hasn’t quit, says govt

check, I do not think that it isthat kind of leadership thatwould want to do so. And forme specifically, I do not havesuch directives. And I do nothave such powers to pad anycommittee’s budget becausesome members or some peo-ple in the leadership are al-ready thinking about 2015.Anybody who is saying so, Ibeg you, it is not true. Do notaccept it.”On the lawmakers’ penchantfor budgetary increase, Enostated that the National As-sembly simply attempted tohelp in moving funds to areasthey were most required sothat abandoned projectscould be attended to“If in the last three to five

years, some particular proj-ects have since been aban-doned, in their wisdom, ourstanding committees cantake some monies from otherareas of the budget bill andtry to make sure that they savethese particular projects fromtheir abandoned status. I donot think you are going to callthis ‘padding’ of budget.Rather, what has happened isthat work has been done onthe appropriation bill by dif-ferent sub-committees; theproduct of that has all beenbrought back to the appropri-ation committee, the appro-priation committee has beenable to make a bill out of itwhich has been passed by thetwo chambers of the NationalAssembly. And I do not thinkthat what has been done iswhat is not done within theconstitutional powers that Ithink the National Assemblyhas.”According to him, the cur-

rent members of the NationalAssembly deserve commen-dation from Nigerians be-cause they have observed thehighest level of discipline inbudget making more thanthe previous sessions of theassembly.“There is too much talk aboutraising the size of budgets.But let us not forget that if youcompare this seventh assem-bly to the previous assem-blies, I think we deserve somepraises in terms of our re-sponsible approach and disci-plined approach to thebudget. Prior to the seventhassembly, if you compare theaggregate expenditure fig-ures between what proposalsthe president came with andwhat eventually got out of theNational Assembly, the differ-ence will be at least N200 bil-lion. Beginning from 2012including 2013, the increase interms of size of budgets hashovered around N50 billion.”

Presidency seeksAGF’s advice on rightof veto by lawmakers

THE GUARDIAN, Monday, February 18, 2013 5

NewsWhy APGA cannot join APC, by ObiFrom Muyiwa Adeyemi (Ado Ekiti),Lawrence Njoku (Enugu), CharlesOgugbuaja (Owerri) and EzeochaNzeh (Abuja)

GOVERNOR Peter Obi ofAnambra State yesterday

said that the All ProgressivesGrand Alliance (APGA) wouldnot join the newly formed AllProgressives Congress (APC). While Obi declared this yes-terday, Governor KayodeFayemi of Ekiti State has ex-pressed optimism that theAPC would restore true feder-alism and encourage part-nership with various socialgroups and individuals.

Likewise, leaders of theCongress for ProgressiveChange (CPC) in Enugu Statehave vowed to ensure the re-

alisation of the objectives ofAPC, just as the APC, to con-solidate its gains, has ap-pointed the Imo StateGovernor, Rochas Okorocha,as its South-East co-ordina-tor.Obi, who assumed the role

of APGA national leader afterthe party’s caucus and stake-holders’ meeting at theweekend in Abuja, said theparty could not afford to loseits identity and logo in orderto be part of the new APC,adding that doing so wouldlead APGA into extinction.

However, he stated thatwhile the party was not in

any merger talks with anygroup, it would not stop anyof its members who in-tended to join the group,adding that it was all aboutpersonal decision.Nevertheless, he slammedthe involvement of SenatorAnnie Okonkwo in themerger deal on behalf ofAPGA. He insisted that as far as

APGA records were con-cerned, Okonkwo was notconsidered as member of theparty and should only nego-tiate the merger as an indi-vidual. According to Obi,Okorocha’s comments at the

merger meeting that therewere two groups in APGAwas said out of sheer senti-ment, as APGA is one and re-mains indivisible.Obi noted that joining the

merger would amount tothe party losing its identity,which he said would be con-trary to the ideals of its lateleader, Dim ChukwuemekaOdumegwu-Ojukwu, whonoted that it was better forthe Igbo to be a majority in aminority by sticking toAPGA, rather than joining amajority group where theywould lose their identity andremain unheard.For Fayemi, the new mega

party will not limit its mem-bership drive to its South

West members but willrather open its doors to otherprogressive platforms and in-terest groups outside themerger, as well as individualswho are willing to be part ofthe new arrangement aimedat rescuing the nation.Fayemi, who is the chair-

man of APC’s Contact andMobilisation Committee inthe South West, made the dis-closure in a statement in Ado-Ekiti yesterday, stating thatthe new party was commit-ted to the birth of a better na-tion. According to him, thebirth of APC at a timeNigerians are earnestlyyearning for accountable, re-sponsive and responsibleleadership is significant.

Controversy trails NDA admissions, spokesman denies alleged rot

Chairman of Dokita Editorial Board, Prof. Akin Omigbodun (left), University of Ilorin (UNILORIN) Medical students – Abdulkareem Ahmed, Ahmodu Sumaila, Efuntoye Ayodeji and Joge Olatobi – displayingthe trophy won by UNILORIN at the Fidson Health’s 7th biennial Prof. Olu Akinkugbe Inter-medical Schools Quiz Competition held at the Olabisi Onabanjo University Teaching Hospital, Shagamu, OgunState…at the weekend. PHOTO: OSENI YUSUF

From Hendrix Oliomogbe, Asaba

AN alarm has been raisedthat the rot in the

Nigerian educational sys-tem might gradually setinto the elite NigerianDefence Academy (NDA),Kaduna, if immediate stepsare not taken by the rele-vant authorities to arrestthe slide.A worried middle ranking

military officer, who for ob-vious reasons does not wanthis name in print, confidedthat the rate at which re-tired and serving militaryofficers and politicianslobby for their candidates tobe admitted into the institu-tion was alarming. However, the NDA Public

Relations Officer, Col.Abubukar Edun, dismissed

the allegation as baseless, say-ing that admission into theinstitution was very transpar-ent. Currently, the sourcesaid, a critical look at the stu-dent population of 1,500 willshow that over half of thecadets, who applied to betrained as officers of theNigerian Army, Navy and AirForce, were admitted basedon recommendations by

politicians and top militaryofficers. Unlike in the past when se-

lection was wholly based onmerit after an entrance ex-amination and a rigorousphysical test, the anonymousofficer lamented that cur-rently, over half of the cadetswere scions, friends and fam-ily members of politiciansand top military officers.

All the same, Edun ex-plained that all a potentialcadet needed to do was tobuy a form, adding that suchperson must write and passthe Joint Admissions andMatriculations Board (JAMB)examination and have a min-imum of five credits, includ-ing English andMathematics, before beingconsidered for admission’’.

NCCA plans fresh insurance scheme for travellersFrom Wole Shadare (Lagos) andNkechi Onyedika (Port-Harcourt)

TO reduce the hardship en-countered by families ofair crash victims and enablethem earn more than thestatutory $100, 000 compen-sation, the Nigeria CivilAviation Authority (NCAA) isplanning a fresh insurancescheme for prospective trav-ellers. In a related development,

Bellview Airlines yesterdayfaulted the findings of theAccident InvestigationBureau (AIB) on its 2005plane crash, accusing theagency of allowing internalpolitics and bias to distort its

16 feared killed inKano auto crash

AGHASTLY motor accident atDurbundai Village in Takai

council of Kano State hasclaimed about 16 lives.According to an eyewitness,the crash, which occurred atthe weekend, also left injuredanother seven persons, whoare now receiving treatmentat Rasheed Shekoni Hospitalin Dutse.

The eyewitness told TheGuardian that the two vehicles- a Toyota Siena and a Ford bus- which were coming from op-posite directions, had a headon collision and claimed thelives of 11passengers instantly.

Chairman of Birninkuducouncil, Alhaji Khali Ibrahim,confirmed the accident, say-ing: “Yes it is true, the victimswere on their way to TsangayaVillage in Albasu council ofKano State to attend a wed-ding when the accident oc-curred. 11 people died on thespot, three others died later inthe hospital same Saturdaywhile other two passed on yes-terday.”

Red Cross seeks aid forvulnerable groupsFrom Collins Olayinka, Abuja

THE InternationalCommittee of the Red Cross

(ICRC) yesterday marked its150th anniversary with a callon world leaders to ensure theprotection of rights of vulner-able groups in conflict situa-tions.In a statement in Abuja at theweekend, the group said thatat a time people were suffer-ing the agonies of war in Syria,Mali, the Democratic Republicof Congo and elsewhere, theICRC was more determinedthan ever to carry on with itshumanitarian mission.Commenting on the land-

mark anniversary, ICRCPresident, Peter Maurer, said:“This anniversary provides uswith an opportunity to lookcritically at our past, and alsoto develop awareness of thestrengths that have helped usin our activities carried out formillions of victims of armedconflict and other violence’’.

CD elects new executives, flays state of nationBy Tunde Akinola

THE Campaign forDemocracy (CD) has called

on Nigerians to join their col-lective interests as changeagents across Nigeria to riseagainst the deplorable situa-tion in the country and stopthe impending disaster loom-ing over nation.According to a communique

signed by its President, Dr. JoeOkei-Odumakin, after its con-vention over the weekend, CD,after “exhaustive” deliberationon the state of the nation, saidNigeria used to be at par on de-velopmental indices withcountries like China, but it is to-day fairing worse.

According to CD, Nigeria,which poses as the sixth largestproducer of oil in the world,now harbours a large chunk ofthe poorest people on earthwith over 70 per cent of its pop-ulation living in abject poverty,while unemployment is at alltime high, with youth unem-ployment at over 60 million.

interpretation of the materialfacts of the accident. Meanwhile, in a way to end

speculations on the actualcauses of air crashes, theNCAA and some airline opera-tors have acquired theAutomated FlightInformation ReportingSystem (AFIRS).

Also, the Minister ofInformation, Mr. LabaranMaku, has deplored the slowpace of work at the PortHarcourt InternationalAirport and urged the con-tractor, Inter-BauConstruction, to expedite ac-

tion on the project and ensureits delivery by April 2013.Maku made the call when thedelegation of the NationalGood Governance tour in-spected the airport project yes-terday in Port Harcourt. Helamented that the project,which ought to be delivered byDecember 2012, has been ex-tended to April 2013, and calledon the contractor to completeit on time in order to amelio-rate the hardship faced by trav-ellers using the airport.

The insurance scheme, re-garded as no-fault insurancescheme, would allow prospec-

tive travellers to accumulateor buy more insurance fromairlines. This is totally differ-ent from the normal claimspaid to passengers in theevent of an accident. Speakingto reporters in Lagos at theweekend, the NCAA Director-General, Dr. Harold Demuren,said the planned scheme wasalready on in Europe and theUnited States, describing it asthe best way to go.Demuren disclosed that the

accruable funds would bemanaged separately by theCentral Bank of Nigeria (CBN),with input from the Ministerof Aviation. Demuren ex-plained that though money

would not buy back lives, hebelieves that the $100, 000compensation was very mea-gre.There are indications that inthe event of an accident, vic-tim’s family could be paid asmuch as $300, 000 depend-ing on the consistency of thedeceased in raking up morepremiums. On the absence ofstandard aircraft mainte-nance hangars in the country,the NCAA chief charged theFederal Airports Authority ofNigeria (FAAN) to make landavailable to airline operators,who were willing to buildhangars, and encourage themto do so.

• Bellview faults AIB’s report on crash

Fayemi, CPC list gains of mergerFrom John Akubo, Dutse

THE GUARDIAN, Monday, February 18, 20136 NEWS

Release Ladoja’s, Alao-Akala’s loot, ACN tells EFCCFrom Iyabo Lawal, Ibadan

OYO State chapter of theAction Congress of Nigeria

(ACN) yesterday said the deci-sion of the state governmentto ask the Economic andFinancial Crimes Commission(EFCC) to release the moneyallegedly stolen by formerGovernor Rashidi Ladoja andhis successor, Adebayo Alao-Akala, currently being tried bythe commission, was toensure that the developmen-tal projects being carried outby its administration were notstalled by paucity of funds.Speaking against the back-

drop of allegations of witch-hunting by loyalists of the for-mer governors, the ACN,through its PublicitySecretary, Dauda Kolawole,said in order to ensure thatthe on-going projects werenot stalled, government hadto look within to ensure thatall monies belonging to thepeople, wherever they weretrapped, were collected andduly spent on the people ofthe state.On claims that Governor

Abiola Ajimobi was deliberate-ly attacking Ladoja, who

allegedly helped him to sta-bilise his government,Kolawole said: “The ExecutiveCouncil,which made that reso-lution has two Accord Party(AP) commissioners, an ActionAlliance (AA) and ACN commis-sioners, former PeoplesDemocratic Party (PDP) mem-bers and many technocrats. So,it could not have been targetedat any individual but the issueconcerned, repatriating OyoState money, so as to enable itto be expended on the peopleof the state from where themoney was taken in the firstinstance. It is a matter thattranscends individuals.”On the allegation that the

removal of the Accord Partycaretaker chairman of Ona-AraLocal Council was political, theACN said no governor in thehistory of Oyo State haddemonstrated as much politi-cal tolerance and accommoda-tion of the others as Ajimobi ashe has in his cabinet formerPDP stalwarts, Action Allianceas commissioners, specialadvisers, members of the vari-ous boards and Accord Party

members as caretaker councilchairmen.“The governor has done whatevery noble gentleman will do.This man deserves kudos andnot invectives from AccordParty men,” said the ACN.It recalled that when Ladojawas governor, during the localcouncil election of 2003, oneDr. Joshua Akintaro of theAlliance for Democracy (AD)won the chairmanship seat inIbarapa-East Local Council inspite of the political fraud per-petrated by the PDP govern-ment of Ladoja.It said that not only was

Akintaro not sworn in alongwith others, even when theelection tribunal and theAppeal Court affirmed him asthe duly elected chairman, ittook his predecessor duringhis 11 month in office, to haveAkintaro sworn in.On the demolition of illegalstructures going on in thestate capital, the ACN saidLadoja and his AP loyalists donot have the moral right tocondemn the government.“We have challenged Ladoja

in an earlier release to denythat he demolished a churchand a construction compa-ny’s office on Ring Road,demolished shops at OritaAperin-Elekuro, Orita Aperin-Adesola, Orita Aperin-Adekileand Academy Under Bridgeroads. What this means is thathe desired the now highly-applauded Ajimobi’s urbanrenewal effort but lacked thepolitical will to implement it.Meanwhile, the ACN has crit-icised the Peoples DemocraticParty (PDP) for blaming thealleged marginalisation ofthe Yoruba by the GoodluckJonathan administration onthe ACN, saying the PDP hasnothing but total contemptfor the Yoruba in particularand Nigerians in general.Reacting to the allegation bypresidential spokesman, Dr.Doyin Okupe, that the“Yoruba people in the ACNconspired against theYoruba” to scuttle the elec-tion of a Yoruba as HouseSpeaker, the party’s NationalPublicity Secretary, Alhaji LaiMohammed, said in a state-

ment issued in Lagos yester-day: “If the PDP had indeedwanted a Yoruba as Speaker,the party should either havewon enough seats in theSouth-West or used its majori-ty in the House to pushthrough its anointed candi-date. Failure to ensure theelection of its candidate is areflection of the insincerity ofthe PDP about the zoning ofthe post to Yoruba and thegross indiscipline in the partyof tattered umbrella.“In any case, the last optionopen to the PDP would havebeen to support any otherYoruba for the post acrossparty lines. We the ACN havevery capable members in theHouse to serve as Speaker. Butthe truth is that the rulingparty wants a PDP member,not a Yoruba, for the post.”He added: “Therefore, we arenot surprised that the PDP eas-ily acquiesced to the defeat ofits Yoruba candidate for thepost of Speaker of the House.The PDP zoning formula is piv-oted on convenience ratherthan principle. After all, thezoning was easily jettisoned topave the way for Jonathan tocontest as President.”

Nigerian hospitals have weak emergency departments, study revealsBy Chukwuma Muanya

PATIENTS in dire need ofemergency medical care inNigeria have slim chances ofsurvival since most emer-gency departments (EDs) inNigerian hospitals lack tech-nological and humanresources to save lives. A new study by United Statesand Nigerian researcherspublished in EMJ On-line Firstconcluded: “Although EDlocation and layout in Abujado not differ greatly from thatin a typical United States (U.S.)city, ED utilisation was lowerand fewer resources andcapabilities were available. “The lack of technological

and human resources raise

Bishops at a procession during the opening of the First Plenary Session of the Catholic Bishops’ Conference of Nigeria in Abuja…yesterday PHOTO: NAN

From Alemmma-Ozioruva Aliu,Benin City

Ugolor alleges threatto life

AS the House ofRepresentatives pre-

pares for its meeting withthe State Security Service(SSS) and the AttorneyGeneral of the Federationover the killing of thePrincipal Private Secretaryto Governor AdamsOshiomhole of Edo State,Olaitan Oyerinde, theExecutive Director of theAfrican Network forEnvironment andEconomic Justice (ANEEJ),Rev. David Ugolor, at theweekend alleged threat tohis life.Ugolor said he was being

trailed by unknown carsand getting feelers that hehas been targeted for assas-sination.

He was arrested anddetained in police andprison custody for 41 daysbefore the state Director ofPublic Prosecutionsabsolved him of any com-plicity in the killing ofOyerinde, who was his closefriend. He was with the lateOlaitan a few hours beforehe was killed.

From Terhemba Daka, Abuja

FCT earmarks N500mfor SURE-P

THE Federal Capital Territory(FCT) Administration says ithas earmarked the sum ofN500 million from SURE-P toprovide palliatives to take careof those to be affected by thenew transport policy in the ter-ritory.

FCT Minister, BalaMohammed, spoke in Abujawhile receiving the report ofthe Ministerial Committee onthe Implementation of Mini-Bus Feeder Routes and TrafficRegulations in his office.The minister, who adopted allthe recommendations of thecommittee, immediately liftedthe suspension earlierdeclared for the implementa-tion of routes delineation forhigh capacity buses, mini-buses, taxis and the Keke-Napepbut with a grace period ofthree weeks.He said the three weeks’ graceis to give room for further pub-licity and adjustments.He explained that the admin-istration was not implement-ing the new land transport pol-icy to inflict pains on com-muters, but that the decisionwas taken in the overall inter-est of the country and in partic-ular, residents of the territory.He restated the commitmentof the FCT Administration tosustain the Abuja Mass TransitPolicy, particularly as it strivesto implement the FederalGovernment’s transformationagenda in the area of trans-portation.

‘Ibadan Dry Port to becompleted soon’

OYO State Commissioner forTrade, Investment and

Cooperatives, Mr. BayoOlagbenro, has said theIbadan Inland ContainerDepot currently under con-struction will soon be com-pleted by the FederalGovernment.Olagbenro, in a statement

issued in Ibadan at the week-end, also said the project,located at Erunmu, in the statecapital, has been upgradedfrom Inland Container Depotto the level of a dry port toensure better performancewhen it eventually takes off.He said work has resumed

again at the port, with the put-ting in place of such facilitiesas roads, administrativeblocks and the construction ofstacking area for goods com-ing in and going out of theport.While expressing the FederalGovernment’s commitmentto the quick completion of theport, the commissioner saidhe met recently with officialsof the Federal Ministry ofTransport, adding that theygave their words that effortswere on to put all the neces-sary facilities in place.One of them is the extensionof the rail line from ErunmuRailway Station to the port toensure easy movement ofgoods to and from the place.Olagbenro also said that a

broad-based committee com-prising all stakeholders hadbeen put together by theFederal Ministry of Transportto fast-track the take off of theproject.

Tinubu’s book launchpostponedTHE committee for thelaunch of a book: Financialwater from an empty well, co-authored by Asiwaju BolaAhmed Tinubu and BrianBrown, has announced post-ponement of the book launch. The event, which was earlierbilled for Thursday, February21, will now hold on March 7 atthe Civic Centre, VictoriaIsland, Lagos at 11 a.m.

questions about what criticaltechnologies are needed inresource-limited settings andwhether Nigeria should con-sider training emergencymedicine physicians to meetits workforce needs.”EDs are the basic units of

international emergencymedicine but often differ infundamental features.According to the researchersfrom the Department ofEmergency Medicine,Brigham and Women’sHospital, Boston,Massachusetts andDepartment of EmergencyMedicine, MassachusettsGeneral Hospital, Boston,Massachusetts, United States;Department of OperationsResearch, Population Council,Abuja; and Department ofHealth Policy, Diadem

Consults, Abuja, led by Dr.George Eluwa, all EDs open 24hours per day, seven days perweek to the general publicwere surveyed using thenational ED inventories sur-vey instrument. ED workers were asked aboutED characteristics with refer-ence to calendar year 2008.Results of the study show 24EDs participated (83 per centresponse). All were located inhospitals, which ranged insize from six to 250 beds. Themajority (92 per cent CI 73 percent to 100 per cent) had acontiguous layout with med-ical and surgical care provid-ed in one area. All EDs saw both adults andchildren, with a median of1,500 annual visits. Almosthalf of respondents thoughttheir EDs operated under

capacity, none thought thattheir EDs were over capacity.Only four per cent of EDs sur-veyed had dedicated CT scan-ners, 25 per cent had cardiacmonitoring and none hadnegative-pressure rooms.There was wide variation inthe types of emergencies thatwere identified as being treat-able 24 hour per day, sevendays per week; theseappeared to correlate with EDconsultants availability.On the surface, EDs in Abujaappear to resemble many EDsin the United States. The largemajority has a contiguouslayout with medical and sur-gical emergencies seen in onearea. Most are independentdepartments in their ownright, while others functionunder the auspices of thedepartments of medicine or

surgery.However, Abuja EDs differ

significantly from UnitedStates EDs in several majorways. First, visit volumes arevery low for the individualEDs. This is consistent withthe finding that almost half ofthe respondents characterisetheir EDs as under capacityand none as over capacity.Moreover, it is not only theindividual EDs that have lowvisit volumes: a rough calcula-tion based on the median of1,500 visits per hospital yields54 EDs’ visits per 1,000 popu-lation. The same metric in theUnited States is 415, an almosteight-fold difference in utili-sation. This measure is simi-larly many times less than inother developed countriessuch as the United Kingdomand Australia.

Party faults PDP over Yoruba marginalisation

THE GUARDIAN, Monday, February 18, 2013 NEWS 7

Former Military Administrator, Osun State, General Leo Ajiborisha (rtd) (left); former Governor of Ogun State, Aremo Olusegun Osoba and his wife, Derin, duringthe burial ceremony of Onimole of Lagos, Chief Kayode Adesina Onimole in Lagos at the weekend

Leaders in Europe laud move for Igbo unityFrom Leo Sobechi, Abakaliki

IGBO leaders in Europehave commended NjikoIgbo, a socio-political organ-isation of South East people,working for the unity oftheir kinsmen towards actu-alising Nigerian presidentof Igbo extraction in 2015.

At their recent meetingheld in Luxemburg, Prof.Onwuka Obioha, who gavethe keynote address,advised Ndigbo to cometogether and eschew witch-hunting and other recrimi-nations against themselves,noting that the best way forNdigbo to actualise thedream of 2015 presidency isto support the vision ofNjiko Igbo.In a statement signed by

the 10-man delegates inEurope and read by the Co-ordinator, Dr. Basil Okeke,shortly after the meeting,the Igbo leaders endorsedNjiko Igbo for its ideology ofIgbo unity and commendedformer Governor of AbiaState, Orji Uzor Kalu, for thewisdom and foresight thatgave birth to Njiko Igbo.Part of the statement read:

“We advise Ndigbo to rallyround and support Dr. OrjiUzor Kalu, whom we believeis the true Igbo leader of ourtime. Being an Igbo leader isnot by wealth but by thelevel of sacrifices made inorder to protect the inter-ests of Ndigbo.

“Constructive criticismshould be welcomed in this21st century but not when itis detrimental to theprogress of one’s ideology.”

Expressing believe thatIgbo presidency in 2015 isreal, the leaders assuredthat “we shall all worktogether to achieve thisgreat task.”

The representatives ofNjiko Igbo in UK urged allIgbo leaders to continue topressure Kalu to leadNdigbo in 2015 since,according to them, “statis-tics have proved that he hasthe qualities and the spiritof unity.” Meanwhile, the National

Organising Secretary ofOhanaeze Youth Council,Mazi Okechukwu Isiguzorohas expressed dismay at thealleged misunderstandingbetween Kalu and GovernorTheodore Orji, urging Kaluto comport himself as astatesman in his utterancesabout the current adminis-tration in Abia State.

The group also said thealleged controversies trail-ing Kalu’s claim that he hasrejoined the People’sDemocratic Party (PDP) asone of the founding fathersare enough evidence that heis not wanted in the party.

Edo ACN denies substituting candidatesfor council pollsFrom Alemma-Ozioruva Aliu, Benin City

THE Edo State chapter of theAction Congress of Nigeria(ACN) has denied substitut-ing councillorship candi-dates in some local govern-ment councils ahead of theApril 20 election. The party said it had rather

ensured that foisting of coun-cillorship candidates bysome few persons in somecouncils and wards withoutinvolving the entire leader-ship structure in the affectedareas were corrected.

This position of the partycame on heels of denial oftension in the leadership ofthe party in Ososo communi-ty in Akoko-Edo LocalGovernment over reportednomination of AannenaJemitola as commissionernominee from the council.On the reported sacking of

the party’s state secretariatlast Friday by irate youths,who alleged substitution ofcouncillorship lists in Oredoand Egor councils, the stateChairman of the ACN,Thomas Okosun deniedgoing into hiding when thefracas broke out, adding thatthe party leadership rejectedlists of councilors that weresubmitted without the inputof all the leaders of the partyin some wards.

ECOWAS parliamenthails peace process inG’BissauFrom John-Abba Ogbodo, Abuja

SPEAKER of the Parliamentof the Economic

Community of West AfricanStates (ECOWAS), Senator IkeEkweremadu has describedthe peace and democracyrebuilding process in GuineaBissau as satisfactory andcommendable.According to a statement

issued by his Media Adviser,Uche Anichukwu, in Abuja atthe weekend, Ekweremadumade the declaration at ameeting with the InterimPresident of Guinea Bissau,Manuel Serifo Nhamadjo inBissau, during a workingvisit by the ECOWASParliament, to assess theprogress of the peace anddemocratisation process inthe country.

“My impression beforecoming on this mission wasthat there was general inse-curity in Guinea Bissau andthat people were finding itdifficult to move around,that there is tension inGuinea Bissau.“However, I am going back

with a different impression,which is that of a countrythat has finally found peace,and that ECOWAS has doneextremely well in GuineaBissau,” the speaker said.He appealed to the people

of Guinea Bissau to supportthe transition programme,work together as a people,and with ECOWAS, to resolveoutstanding issues. “TheECOWAS Parliament andindeed ECOWAS will contin-ue to support the people ofGuinea Bissau to resolve alltheir problems and help thecountry achieve her poten-tial,” he stressed.Ekweremadu, who is also

the deputy president of theNigerian Senate, had earlieraddressed members of theNational Parliament ofGuinea Bissau in plenary,commending them for“standing firm for democra-cy when it mattered most.”

Pensions team denies misusing funds

THE Pensions Reform TaskTeam (PRTT) has described

the allegation of misappro-priation of pension fundsmade against it as baselessand untrue.

According to the PRTT,“these spurious allegationsare the product of Etuk - GayaSenate Pension ProbeCommittee, who bitterlyhates the Pension Task Teamwith an intense emotion.”

But the Nigeria LabourCongress (NLC) has laudedthe Senate for insisting thatthe embattled Chairman ofthe PRTT, AlhajiAbdulrasheed Maina, bemade accountable for hisdeeds, noting that the singu-lar action has really shownthat the nation’s democracyhas come an age.In a statement recently, the

PRTT spokesman, HassanSalihu said, “there are noestablished facts to supportall these allegations. Thus,the distinguished SenatePension Probe Committeehas grossly misinformed andmisled the entire Senate with

From Saxone Akhaine, Kaduna andYetunde Ebosele, Lagos

a fictitious report muddledup with a multitude ofnaked, untrue and mislead-ing unjustifiable conclusionsagainst the Pension ReformTask Team.

“It is important forNigerians to equally knowthat since the inaugurationof the Pension Team in June2010 to date, the NationalAssembly has never appro-priated one naira for thePension Reform Task Team inits Appropriation Acts of2010, 2011, 2012 and 2013.

Where and how could thePension Team have misap-propriated funds when noth-ing has been appropriated toit by the National Assembly?

“The Task Team is not astatutory body. Thus, thehead of Service has the exclu-sive rights for expenditurecontrol of his office. All finan-cial or material engagementsof the Task Team are subjectof approvals from the head ofCivil Service of theFederation. There is no peri-od when the chairman of thePension Task Team,who is anordinary ‘assistant director’

became the head of CivilService of the Federation.“Hence, the Pension Team

emphatically states that ithas no power of approval ofone naira over the pensionoffices that it has so far struc-tured. Pension Task Team hasnot yet been provided opera-tional budget neither has itany bank account to date.” According to the statement,

“the Task Team only dealswith papers work to com-pute pensioners’ entitle-ments, after which it thensend it to head of Service forapproval. Nigerians shouldnote that the Team is not incustody of recovered funds,the recoveries are executedby Anti-graft agency whereapplicable.”NLC, however, insisted that

President GoodluckJonathan should properlyguard the nation’s assets andresources from the hands oflooters at the corridors ofpower.In a statement issued by its

Vice President, Comrade IssaAremu in Kaduna at theweekend, NLC said, “we com-mend the principled stand of

Vendors threaten protest over alleged harassment by Oyo officialsTHE Association ofNewspaper Vendors in Oyo

State has threatened toembark on protest, begin-ning from today, over allegedarrest, harassment and intim-idation of its members byagents of the state govern-ment.According to a statement by

the association’s Chairmanand Secretary, OlalekanAhmed and Tunde Abimbolarespectively, the harassmentof vendors has been on sinceDecember 2012. They allegedthat several efforts by the

From Iyabo Lawal, Ibadan association to curtail themenace had proved abortive.

The association’s officialssaid several steps to make thegovernment see reasons andmake its agencies stop theharassment and intimida-tion had been largely thwart-ed by some overzealous offi-cials in the Governor AbiolaAjimobi’s administration.

The group particularlyaccused officials supervisingthe environmental arm ofYES-O of inciting them to con-fiscate and arrest vendors forselling newspapers at majorhighways in Ibadan, the state

capital.Among the steps the group

had taken was the meeting itheld with the Commissionerfor Environment, LowoObisesan and the SpecialAdviser to the Governor onMedia, Dr. Festus Adedayo,where the association wassaid to have been assured byObisesan and Adedayo thatthey would call their YES-Omen to order.

The association lamentedthat in spite of the assuranceat the meeting, the harass-ment of vendors has not abat-ed, describing the trend as

the Senate under the leader-ship of David Mark on thePRTT chairman accused ofcomplicity in illegal diver-sion of almost a trillion nairapension funds meant forpensioners in the country.

“By rightly insisting thatMaina be made accountablefor his deeds, Nigeria’s legis-lature (even at the risk ofbeing blackmailed) hasproven to a ‘useful organ’ ofpublic opinion, as well as,‘the nation’s committee’ forhandling public grievances.Constant legislative check onthe executive impunity hastruly made Nigeria’s demo-cratic process come of age.There is no hiding place forpension scammers.”Aremu explained that the

insistence of 107 senators onPolice enforcement of thewarrant of arrest on Mainashows that there is no hidingplace for scavengers of thenation’s pension assets.

“Woes unto all those, whocriminally inflict pains andagony on retired workingmen and women by lootingtheir legitimate claims,” NLCsaid.

unfortunate. “We were accompanied to

that meeting by some seniormanagement staff of anational daily. It was at thatmeeting that it was discov-ered that the governor wasnot aware of the plight of thevendors.

“To our greatest surprise,the governor’s convoy waspassing through Gate area onThursday February 14 around2.00pm and some officialswithin the governor’s convoystopped and seized all thenewspapersdisplayed for saleby our vendors.

“It is our belief that theaction could not have beentaking place without theknowledge of GovernorAjimobi,” the vendors said.

Their statement reads inpart: “It our belief that news-papers and magazines salecannot be carried out off thestreets or inside our houses,and since all efforts to makethe Oyo State government seereasons with us have provedabortive, we have no optionthan to withdraw our ven-dors from the streets andembark on strike until the sit-uation improves.”

NLC lauds Senate’s move against Maina

8 NEWS

Lagos PDP scores Fashola low on performance

LAGOS State chapter of thePeoples Democratic Party(PDP) has described theGovernor BabatundeFashola-led Action Congressof Nigeria (ACN) governmentas a failure.�� A statement by spokesmanof the party, Mr. Taofeek Gani,yesterday described the on-going project tour of Fasholaas a manipulation, which wasaimed at justifying the verybogus claim of 89 per centbudget success in 2012. The PDP accused Fashola ofdoing more of propagandaover his claimed achieve-ments than the reality onground, asserting that the so-called project tour is a cha-rade and the budget success

as claimed by ACN onlyexposed the desperation ofthe ACN government to forcemediocrity into the state.�� “We are indeed not com-fortable to allow the ACNgovernment to continue torun a propagandists govern-ment. Especially becauseLagos is fast moving awayfrom ‘Centre of Excellence’ to‘Centre of Mediocrity’.Imagine the on-going cha-rade being referred to asproject tour and the claimthat this administrationattained 89 per cent budgetsuccess in the Year 2012.Honestly, this is deceitful,fraudulent and deliberatelymeant to fake performance.” ���� Gani said the PDP is partic-ularly surprised that Fasholacan boldly lay claim to such

THE Lagos Division of theCourt of Appeal on Fridaysaid it would on April 8 hearthe appeal filed by formergovernor of Oyo State,Rasheed Ladoja, seeking toquash his prosecution by theEconomic and FinancialCrimes Commission (EFCC)over corruption and fraudcharges.Presiding judge, Justice

Chima Nweze, fixed the dateon Friday, on the groundsthat the case ought to havebeen listed for hearing ofappeal, instead of for hearingof motion as wrongly listedby the court registrar, sincethe appeal was ripe for hear-ing.The court then adjourned

the case to April 8 for hearingof the appeal.The EFCC had re-arraignedthe accused before JusticeRamat Mohammed of theFederal High Court inNovember 2008. Ladoja wasre-arraigned alongside one ofhis former aides, WaheedAkanbi, on an amended 10-count charge of allegedmoney laundering in thetune of N4.7 billion throughthe account of HeritageApartments Ltd at GuarantyTrust Bank.The accused had both plead-ed not guilty to the charge.The appellant’s counsel,

Chief Wole Olanipekun (SAN),had raised an objection to thecharge against the accused,asking the trial court toquash same on the groundsthat the charge levied againsthim were vague and did notlink him with the commis-sion of any crime to warranthis arraignment.But the EFCC counsel, Mr.

Festus Keyamo, in responseargued that the objectionraised by defence counsel wasbelated, as the accused hadalready been arraigned on thecharge and his plea taken.Keyamo argued that such

objection ought to have beenraised immediately after hisarraignment or before takinghis plea, and not when trialhad commenced mid-way.Justice Mohammed agreed

with Keyamo and held in hisruling that objection to adefect in a charge can only bemade on the day of arraign-ment when the applicant istaking his plea and not after-wards.He held that any of such

objections on the framing ofcharges against Ladoja by theEFCC could not, therefore,succeed. He also held that itwas too late to object to thecharge when the accused hadalready taken his plea.The judge also ruled that theproof of evidence placedbefore the court by the EFCChad links with the chargespreferred against Ladoja andthat a prima facie case hadbeen disclosed against him.He, therefore, quashed all themotions filed against theEFCC to quash the charge andordered trial of the accused.As a result of this ruling,

Olanipekun filed an appeal tothe Court of Appeal in 2010,seeking an order to quash thecharge preferred against theaccused.He contends in his notice ofappeal that the proof of evi-dence placed before the courtby the prosecution had nonexus with the charge anddoes not disclose any primafacie case against the accused.

bogus success when his gov-ernment has continuouslyplunged the state into localand foreign debts of overN900 billion, even when thestate realises over N40 bil-lion monthly as internallygenerated revenue (IGR) andhas collected over N16 tril-lion from the FederalGovernment since 1999. ���� “Notwithstanding thesemonies, the few major proj-ects being flaunted on thetour are not directly linkedto the said budget but actual-ly on contributions of pri-vate investors, philanthro-pists, concessionaires,Federal Government andcommunity associations.��Such projects include: theLekki-Epe Expressway, BRT,light rail, rehabilitation ofOshodi-Oke road, modernmarkets. ���� “We wonder how the gov-ernment could have award-ed performance success toitself when it has actuallyfailed to address its promisesto Lagosians such as: the 4thMainland Bridge, rehabilita-tion of Isheri-Oke-Afa road,provision of qualitative andaffordable education, afford-able housing, payment ofN18,000 minimum wage,provision of employment,potable water, qualitativeand affordable health servic-es, affordable markets,among others.�� “The party believes thatthese prevalent deficienciesin the state indeed manifestin the number of factoriesproducing cachet water, pri-vate hospitals, hoodlums,street traders, traffic jams allover the state”. ���� PDP, however, rated anybudget year of Lagos underformer Governor BolaTinubu and Fashola as notexceeding 45 per cent andchallenges the governmentto a live-debate “we have ourdata and thus convinced thatunder Governors Tinubuand Fashola, Lagos has neverattained over 45 per cent suc-cess in its budget implemen-tation. We challenge them toa project tour where repre-sentatives of NUJ, Labour,students’ leadership, opposi-tion parties, NGOs, civil soci-ety organisations, amongothers, will partake. ��As amatter of fact, we shallacknowledge and do a publicapology if our claim iswrong.”

Catholic Church still inCAN, say Onaiyekan,Kaigama

AGAINST the backdrop ofinsinuations that theCatholic Church has pulledout of Christian Associationof Nigeria (CAN), thePresident of CatholicBishops’ Conference ofNigeria (CBCN), BishopIgnatus Kaigama and theArchbishop of Abuja Diocese,Cardinal John Onaiyekan,have reiterated the commit-ment of the church toChristian unity.Kaigama, while delivering

his presidential address atthe take-off of the PlenaryMeeting of the CBCN yester-day in Abuja, said their callfor dialogue on some nation-al CAN issues must not bemisconstrued for ulteriormotives.He stated: “Those who

screamed the headline‘Catholic Church pulls out ofCAN’, were not expressingour views and those who,without finding out the truthof the matter made weightyand indicting statementsagainst the Catholic Church,need to exercise restraint andprudence in the future”.

Kaigama cautionedChristians against allowingmedia headlines to trivalisefundamental Christianissues, thereby settingChristians against one anoth-er.

From Joke Falaju, Abuja

Kwara ACN warns govtover danger of floods

KWARA Action Congress ofNigeria (ACN) governor-ship candidate in the 2011polls, Mohammed DeleBelgore (SAN), yesterdaycalled on the Kwara State gov-ernment to, “as a matter ofurgency, take concrete stepsto avoid another floodingacross the state.” Belgore said the governmenthas not taken “any serious,concrete and aggressivemeasures” to prevent a recur-rence of the 2012 flooding,which claimed lives anddestroyed property and farm-lands in many parts of thestate.“As another rainy season

beckons, we call on relevantauthorities in Kwara State, toas a matter of urgency, takeconcrete steps to avoid anoth-er flooding across the state,”Belgore said in a statement byhis media aide, Rafiu Ajakaye.

From Abiodun Fagbemi, Ilorin

Aregbesola urges religious tolerance, tours U.S.

TO promote his drive tobecome a model for sus-tainable socio-economicdevelopment, Osun StateGovernor Rauf Aregbesolawill from today begin a week-long working visit to theUnited States of America.According to the Director,

Bureau of Communicationsand Strategy, Office of theGovernor, Mr. SemiuOkanlawon, the governor willuse the occasion to advancehis innovation and economicdevelopment efforts in meet-ings with Harvard KennedySchool, other academic insti-tutions and potentialinvestors.Okanlawon also said the gov-ernor’s itinerary includes sev-eral speaking engagementsin Boston, Pittsburgh andWashington DC, among oth-ers, showcasing the achieve-ments and opportunities inOsun as an investment desti-nation in Nigeria.

By Tunde Akinola

Court to hearLadoja’s appealApril 8By Joseph Onyekwere

From John-Abba Ogbodo (Abuja)and Seye Olumide (Lagos)

President General, Middle-Belt Youth Congress, Abuka Onalo Oma-Baba (left); Publicity Secretary, Nigeria People’sCentenary Group, Mr. Adewale Adeoye; the Deputy Convener, Lanrewaju Suraj and South-South Co-chairman,Werinipre Digifa, during a press briefing by the centenary group to announce the summit marking the 100 years ofamalgamation at Femi Falana Chamber in Lagos…at the weekend

THE GUARDIAN, Monday, February 18, 2013

• Party lauds Jonathan over roads

THE GUARDIAN, Monday, February 18, 2013 9

WorldReportPakistanis mourn, protestafter bomb kills 81 Deadly blast targetShiite neighborhoods inIraq

PAKISTANIS rose yesterdayin protest across the coun-

try, demanding protectionfor Shiite Muslims after abomb blast targeting theminority community killed 81people, the latest in a series ofbloody sectarian attacks inthe country, a report byAgence France Presse (AFP)indicated.

A banned militant group,Lashkar-e-Jhangvi (LeJ),claimed responsibility forSaturday’s attack – as it did forthe snooker hall bombingand a February 1 attack on aShiite mosque in northwestPakistan that killed 24.

There was anger and frustra-tion among Shiites at theapparent inability or unwill-ingness of the authorities totackle the LeJ.

Activists said the failure ofthe judiciary to prosecute sec-tarian killers allows them tooperate with impunity.

According to agency reports,the bomb containing nearly atonne of explosives, hidden ina water tanker, tore through acrowded market in Hazaratown, a Shiite-dominated areaon the edge of Quetta, the cap-ital of southwesternBaluchistan province, onSaturday evening.

This was also followed yes-terday by a spate of bombs

explosion in Baghdad, whichkilled no fewer than 21 peopleand wounding 125 others,police said.

The Cable News Network(CNN) claimed that the blasts –six car bombs and three road-side explosions – mainly tar-getted outdoor markets inShiite neighborhoods, quot-ing Baghdad police as saying.

Overall violence hasdropped significantly in Iraqsince the peak of sectarian vio-lence, between 2005 and

Experts warn over emergence of Egypt’syouth anarchist groups

Germantown Quakershold first formal protestagainst slavery inEnglish America

THE first organised protestagainst slavery in the

Americas was held in 1688 byfour Pennsylvania Quakersfrom Germantown Meetingunder the care of Abington(often called Dublin) monthlymeeting.

Gerret Hendericks, Derick upde Graeff, Francis DaniellPastorius, and Abraham upden Graef organised theprotest and presented theiropposition to slavery and thetrafficking of human beings atthe monthly meeting atDublin in Philadelphia.

In the document, theQuakers use a golden rule toargue against such inhumanetreatment of their fellow manregardless of the colour oftheir skin. “We shall doe to allmen licke as we will be doneourselves; macking no differ-ence of what generation,descent or colour they are,”the rule stated.

Seeing the injustices of theslave trade, they courageouslytook a stand against slaverybased on their religious andmoral beliefs.

ANALYSTS have warned thatthe emergence of violent

youth groups in Egypt andpossibly their rising frequencyon camera are likely to createmore social troubles and fur-ther hinder the nation’smarch to stability, Xinhua stat-ed.

The Black Bloc, a new anar-chist group, along with otherundeclared Egypt’s youthgroups, are getting addicted tovandalism to express theiropinions, press the govern-ment to respond to theirdemands, while claiming thatthey are protecting protestersagainst the MuslimBrotherhood (MB) and securi-ty forces’ oppressing practices.

“Violence VS violence,” theBlack Bloc wrote on itsFacebook page. The groupmade its first appearance inthe second anniversary of theJanuary 25, 2011 “revolution,”by setting ablaze four busesbelonging to the MB near theiconic Tahrir Square in the cap-ital, Cairo.

Masked and dressed in blackfrom head to toe, members ofthe bloc resort to the “black-ism” ideology based on chaot-ic and anarchic actions, saidSamir Ghatas, chief of Cairo-based Maqdes Centre forPolitical Studies.

As for Mamdouh Attyah, astrategic expert, the youthgroups are not merely “groupsor pages on the internet,” theyare resisting the administra-tion by resorting to violence to“protect the citizens’ rights” inreality.

Attyah said although itsmembers are enjoying enthu-siastic youth soul, they lack theweapons and funding thatmight help in building groupswith organisational structureor militias. 

Syrian rebels on offensive, oppositionflays Hezbollah

SYRIAN rebels pressed onwith the “battle of the air-

ports” in the north yesterday,attacking three key facilitiesas the main opposition blocaccused staunch Damascusally, Hezbollah, of “militaryintervention” in the country.

This came as United Nations(UN) and Arab peace envoy,Lakhdar Brahimi, urged back-ing for an opposition offer fortalks with the regime ofBashar al-Assad after UNrights chief, Navi Pillay, calledfor international actionagainst the Syrian president.

Pillay urged that some sortof international action betaken against Assad and he beinvestigated for “crimesagainst humanity and warcrimes.”

“We urge that action betaken immediately. If there isdoubt or hesitation, it isbecause people are assessingthe value of military interven-tion in places like Libya, Syriaand Afghanistan,” Pillay toldBritain’s Channel 4 television.

On the ground, troops par-ried fierce rebel attacks nearAleppo airport, the adjacentNayrab military airbase andKwiyres airbase east of Aleppocity overnight, the SyrianObservatory for HumanRights said.

The insurgents launchedtheir offensive against air-ports in the north on February12, and have since seized Al-Jarrah military airport andBase 80, which was taskedwith securing Aleppo’s civil-ian airport.

Tanzania destroys 3,000illegal weaponsAUTHORITIES in Tanzania

at the weekend reportedlydestroyed over 3,000 illegalfirearms, in an operationaimed at curbing crime inthe East African region.

A report by Xinhua claimedthat the country’s VicePresident Mohamed GharibBilal witnessed the burningof 3,181 illegal firearms atUkonga Prisons’ grounds onthe outskirts of Dar esSalaam, the east Africancountry’s commercial capi-tal.

Bilal said the destroyedfirearms were used by peopleto commit armed robberieswithin the East African mem-ber countries of Tanzania,Kenya, Uganda, Burundi andRwanda.

He said most of the armedrobberies occur on bordersamong the East African part-ner states, adding that it wasestimated that there were500,000 illegal firearms inthe region.

He said 200,000 illegalfirearms have already beensurrendered and destroyedin the east African regionsince the operation beganlast year.

Late last year, Tanzanianpolice authoritiesannounced a three- monthgrace period for people pos-sessing unlicenced firearmsin the country to surrenderthem to district commission-ers, ward executive officers,regional and district policeofficers or to any police sta-tion.

African-American History:February 18, 1688

Pope asks church, faithful to ‘renew’ as thousands flock to prayers AS tens of thousands of pil-

grims and touristsattended his penultimateAngelus prayers, PopeBenedict XVI has called onthe church and its faithful to“renew themselves.”

From his window overlook-ing St Peter’s Square,Benedict said: “The Churchcalls on all its members torenew themselves... whichconstitutes a fight, a spiritu-al battle, because the evil

spirit wants us to deviatefrom the road towards God.”

Families with young chil-dren, pensioners and nunspacked into the square inthe sunshine and said theyhad come to pay theirrespects to the pope, maketheir goodbyes or share in ahistoric event ahead of the85-year old’s resignation.

Groups of scouts held upbanners reading “We haveloved you so much!” and

2007. Yet such attacks contin-ue as the 10-year anniversaryof the U.S-led invasion of Iraqnears next month.

The U.S. Embassy in Baghdadcondemned the attacks.

Recent attacks in Shiite areashave spread fear among Iraqisthat sectarian warfare mayravage the country again.

Moreso, Sunnis havedemanded that the Shiite-ledgovernment stop what theycall second-class treatment ofIraq’s Sunni community.

However, mourners gath-ered yesterday in Pakistan aspeople sifted through therubble of the explosion,many weeping as they discov-ered limbs and pieces of fleshtorn apart by the blast, whichwounded 178 people.

A witness, Zainab Bibi, 38,said the carnage was “like theday of judgment had come”.

“Initially I could not see any-thing because of a thick cloudof dust but I could hear loudscreaming,” she told AFP.

Pakistani Shiite Muslims women protest Saturday’s bomb attack in Quetta as the death toll from the devastat-ing bomb attack on Shiite Muslims in southwest Pakistan rose to 81…yesterday. PHOTO: AFP

“We will be with you...always” and said they want-ed to show Benedict that hisshock decision to standdown on February 28 hadnot shaken their faith inhim.

“He has done it for thegood of the Church, and willkeep serving us. He is retir-ing to pray — and God knowswe need his prayers!” saidGermana Blaiotta.

A serene-looking Benedict

waved to the crowds andthanked them for turningout in such large numbers,calling it a “sign of affectionand spiritual closeness”, asthe onlookers called out“viva il papa” (long live thepope).

Benedict’s brother said inan interview with Spanishnewspaper ABC publishedyesterday that the pontiffwas seeking greater tranquil-ity with his retirement.

Top regional official says Darfur needs N6b for economic recovery ABOUT 10 years after an

insurrection began inSudan’s war-ravaged Darfur,the region’s top official,Eltigani Seisi, yesterdayclaimed that the area needs anestimated $6 billion for eco-nomic recovery, appealing forinternational support.

Seisi made the comments inan interview with AgenceFrance Presse (AFP) ahead ofan April 7-8 donors’ conferencein Qatar.

But analysts are sceptical thatmajor funds will be forthcom-ing.

“If the international commu-nity refrains from providingsupport, then how could webe able to stabilise the situa-tion on the ground?

“And how could the people of

Darfur have dividends forpeace?” “ Seisi queried.

The United Nations SecretaryGeneral Ban Ki-moon report-ed in January that a 2011armistice deal, signed in Doha,has yet to bring “concretepeace dividends” for Darfur’sneediest.

Also, the UN said 1.4 millionstill live in camps for peopledisplaced by fighting.

“I am increasingly concernedthat this lack of meaningfulprogress will erode the confi-dence of the people of Darfur

and the international commu-nity in the Doha document,”Ban said.

He called it “particularlyregrettable” that provisionsfor the voluntary return of thedisplaced, the disbanding ofmilitia, and reconstructionand development have notbeen implemented.

Sudan’s government signedthe peace deal with an allianceof rebel splinter factions butmajor insurgents rejected it.

The rebellion, by groupscomplaining about an imbal-

ance of power and wealth inthe country, has been com-pounded by inter-Arab vio-lence, banditry and tribal fight-ing.

Seisi heads the DarfurRegional Authority set up toimplement the Doha agree-ment.

He said the Khartoum gov-ernment, after delays, has nowtransferred an initial contribu-tion of about $200 million for areconstruction and develop-ment fund. Seisi had earlierdescribed the payment as“absolutely necessary” to per-suade other contributors.

Sudan’s economy has strug-gled after losing about half itsfiscal revenues when SouthSudan separated in 2011 withmost of the united country’soil production.

If the international community refrains from pro-viding support, then how could we be able to sta-bilise the situation on the ground? And how couldthe people of Darfur have dividends for peace?

10 THE GUARDIAN, Monday, February 18, 2013

Politics

Adamu

Okwu Umeh

WHAT is your outlook on the merger ofsome political parties and the formation

of the All Progressive Congress (APC)?This merger will bring progress democrati-cally to this country. The truth of the matter isthat we are all from different political partiesbut the reality is that all the other parties needto come together. We have come together tobring true democracy because the situationwhere one party dominates the political spaceis not good for democracy. We have cometogether to confront the monster, which is thePeoples Democratic Party (PDP).Some members of the PDP like the governor ofAdamawa State, Sule Lamido have describedthe merger as mere propaganda that will notstand the test of time…Lamido should not speak on this. In the firstplace, it is Lamido who said that nobodyshould confront President Goodluck Jonathanbecause he is an incumbent President yet hegoes about campaigning to be the President.Has he forgotten that Jonathan is an incum-bent President? The PDP is a conglomerationof many strange bedfellows. When the PDPwas formed people came from different par-ties. Lamido was part of the Social DemocraticParty (SDP), Adamu Ciroma who was in thethen National party of Nigeria (NPN) all joinedto form PDP. What is wrong in some of theother parties coming together to confrontPDP? For me there is nothing like propaganda;time will tell. We are trying to bring about realchecks and balances so that there will be truedemocracy, so that no party become an octo-pus. We want to avoid a situation where peo-ple will sit in their rooms and write electionresults.The other parties tried it in 2011 but failed.Why would now be different? Well the difference between those other

attempts and this very one is that those otherones were arrangements of convenience forelection purposes but this is an arrangementfor the survival of democracy; it is an arrange-ment to make sure that people should have analternative, another solid party in this coun-try. We are already working even though the

Rochas Okorocha was at the meeting withanother senator from Anambra State. The partyI am sure will clear things at the appropriatetime.Will you trust the Independent NationalElectoral Commission (INEC) this time around?We are aiming for a free and fair election in thenew party. The INEC has promised to use thebiometric system for the next election. TheINEC chairman Prof Attahiru Jega was givenover N100 billion to procure the equipment forthe biometric system but during the electionthose item were not used. We are going to insiston one-man, one-vote in this election.Despite the merger, what do you make of thecrises in all the parties including PDP, is it agood omen for 2015?Of course it is. Politics is all about interests; per-sonal or group so of course, the struggle in anyparties is part of politicking. On the long runthe people will decide whether the interest thateach party puts forward is acceptable to thepeople; all we want is for people to have theopportunity to vote for whomever they want.We have nothing against the PDP except thatwe want free and fair election. If they win fairlywe will concede defeat and if they are defeatedthey should concede so that there will bedemocracy and good governance. Our point isthat the people will have the opportunity todecide who governs them.Were you surprised when the PDP congratulat-ed the new party after the merger wasannounced?I think it is a good omen for the PDP to have

accepted the need for a party that can checkwhat they are doing. We also commend themfor doing that and it is for the collective interestof our country because it belongs to all of us.When it comes to Nigeria it is all of us and justnot PDP or CPC. We have nothing personalagainst the PDP; it is just the differences of opin-ion. We don’t agree with how they perceive thecountry should be governed and how we per-ceive it. They know that without other credibleparties there will be anarchy. It could get to astage where the masses will view everything asconspiracy of the elite and there could bechaos. We are all one and we should subsume our

personal interest when it clashes with that ofthe nation. Some people are surprised seeingPresident Jonathan and Maj.-Gen.Muhammadu Buhari at the flag-off of the cente-nary celebrations. Why should they be? There isnothing personal between Buhari andGoodluck; it is just differences in opinion. It isgood Buhari was at the ceremony because itwas about Nigeria and not just about PresidentGoodluck or PDP.

the Action Congress of Nigeria (ACN) and theCPC to merge but it did not work…There was not enough time then. It was justabout two months to the election and the CPCwas barely six months trying to align withACN. Time is very important and we thankGod that we have time now.Has Governor Lamido declared his politicalambition?We have all seen his campaign vehicles,

posters and car stickers. The State House ofAssembly has also endorsed him, so what arewe saying about an official campaign? It is anopen secret.What of the dissenting voice from the AllProgressive Grand Alliance (APGA)?In the first place the Imo State Governor

next election is still two years away. I don’tbelieve in the excuse that the earlier attemptsfailed but this time around there is enoughtime and the hypocrites should return to PDP.But those who are serious are in the majorityand we will get there.Do you share the fears that the quest for thepresidential ticket may yet divide the otherparties?Well it is part of politics. Is the PDP not fight-ing now between Atiku Abubakar, Lamido,Jonathan and the governors like BabangidaAliyu and others who want to get the ticket ofPDP? There is nothing wrong when people in anew party try to vie for positions. In the longrun it will unite us.In the 2011 election there was an attempt for

Former lawmaker and governorshipcandidate on the platform ofCongress of Progressive Change(CPC) Farouk Adamu Aliyu spokewith JOHN AKUBO in Dutse on theedge the merger will offer the par-ties coming together. Excerpts

Why this new merger is different, by Adamu

APGA appoints Okwu as interim National ChairmanTHE leadership of the AllProgressives Grand Alliance,

(APGA) might have taken the firstconcrete step aimed at resolvingits leadership crisis by opting outof further litigation and pickingthe former chairman of the pro-scribed Citizen Popular party(CPP), as its acting national chair-man. The development is sequel to thesacking of the Sir Victor Umeh-ledNational Executive Committee byan Enugu High Court. Okwu’s appointment is a neces-

sary step into reconstituting a newNational Executive Committee(NEC).An Enugu High Court, presided

over by the Chief Judge of the state,Justice Innocent Umezuruike lastweek declared the 2011 nationalconvention that re-elected theVictor Umeh led NEC as illegal,insisting that the conventionbreached Article 18 of the party’sconstitution. Umezuruike there-fore asked members of the party totake steps to hold a fresh national

convention that will lead to theelection of a new NEC.Rising from a national caucus andstakeholders meeting of the partyat the weekend in Abuja, the partystated that it has reviewed thecourt judgment and concludedthat it would abide by the judg-ment and not embark on anyappeal.A member of the party’s Board ofTrustees, (BoT), Tim Menakaya,who read the communiqué at theend of the meeting stated that thecaucus elected Okwu, whorejoined APGA in November lastyear after the IndependentNational Electoral Commission,(INEC) delisted his party, the CPP.Okwu was elected through amajority vote of the stakeholderspresent at the meeting. Okwu wasalso a foundation NationalWorking Committee (NWC) mem-ber of APGA before he was expelledin 2005 alongside the foundingnational chairman, Chief ChekwasOkorie.Menakaya announced the deci-

sion to reabsorb all other mem-

bers of the sacked NWC and NECmembers under Umeh as mem-bers of the interim committee,including Sanni Shinkafi who wasappointed the acting national sec-retary. He stressed that they willremain in office, pending the con-duct of a national convention.

The new NEC, which was noted toserve on interim capacity, was man-dated to conduct all congressesand national convention of theparty on or before April 30.In attendance at the meeting werethe Anambra State Governor, PeterObi, his deputy, Emeka Sibeudu,

former minister of informationand the party’s senatorial candi-date for Anambra Central Districtin the last election, Prof. DoraAkunyili and some national assem-bly members from the party. Meanwhile, Menakaya, the only

surviving member of the APGABoard of Trustees, was appointed asthe acting chairman of the Board,while members of other zoneswere instructed to nominate atleast two members to the BoT.Okwu disclosed that he bowed topressure to return to APGA, andthat he was prepared to restore thelost glory and hope in the party asits acting national chairman.“I am prepared to deliver this chal-lenge and duty. Since 2002, I havebeen playing a role in Nigerian pol-itics in terms of both party andinterparty activities. I want to bringthese roles here to reposition APGA.I have come back to my politicalbase. Part of my mandate is recon-ciliation and I intend to reach outto everybody down to my formerchairman, Okorie. We should allexpect a new look APGA soon.”

From Ezeocha Nzeh, Abuja

THE GUARDIAN, Monday, February 18, 2013 11

TheMetroSectionTHE GUARDIAN, Monday, February 18, 201312

‘

’Shade Okoya bags chieftaincy title

Alams Barovbe passes on

Social Media Week begins today

WIFE of Chief Akanni Okoya,Chief (Mrs.) Shade Okoya,

will tomorrow be conferredwith a chieftaincy title ofAjisewa of Oke Ona, Egba King-dom, by Oba Adedapo Teju-osho, Karunwi III, OranmiyanOsile Oke Ona Egba. This confer-ment is part of activities tomark the 75thbirthday anniver-sary of Oba Tejuosho.A statement by Bimbo Okoya-Urey says: “ The Iwuye cere-mony will hold at the The Osile,Oke Ona, Egba, Sapon, Ago –Oko, Abeokuta, Ogun Statefrom noonwhile a thanksgiv-ing service holds at the Cathe-dral of St. James African Church,Idi Ape, Ago-Oko, Abeokuta,Ogun State at 10.00a.m. tomor-row, February 19, 2013”

ACTIVITIES to mark the first So-cial Media Week (SMW)begin today and will end on Fri-day.It will feature the conferences,presentations, and workshopsand participants will enjoywhat promises to be one of themost unique features of theevent, SMW Lagos Live series.The SMW Lagos Live series ispartnering with the biggest la-bels in the music industry to en-tertain participants at MACESHub, Terra Kulture, Victoria Is-land. Participants will bethrilled by the Now Muzik/Hy-pertek starring 2Face Idibia,Timi Dakolo, J Martins amongothers.“I just want to thank our part-ners and all the hot artistes whowill grace the event,” says Execu-tive Producer, SMW Live Series,Tola Odunsi.

THE new Comptroller General of the Nigeria Im-migration Service (NIS), Mr. Rilwan Musa, haspledged to hasten the establishment of anotherImmigration passport offce in Lagos.The NIS boss, who was in Lagos on a fact-findingvisit, said the new passport office would be readynext week since the two passports offices alreadyin existence were always overcrowded with appli-cants. The new additional passport office would be lo-cated at Alausa, the seat of Lagos State govern-ment.“We should be opening a new passport office inLagos. We are aware of the challenges applicantsface so the new them. We are still installing thenecessary gadgets and equipment that wouldmake things run smoothly in the place,” he said.The Comptroller-General, who toured major Im-migration formations in Lagos, said he was im-

pressed with the performance of the Ikoyi Pass-ports Office.“ I was impressed when I visited the Ikoyi Pass-ports Office. They are a bit organized but not tothe standard we want. FESTAC Passports Office istrying but it is lacking behind compared to Ikoyi.We have come a long way on the e-passportscheme, we commenced the scheme in 2007, butyou have to agree with me that Nigeria is a pecu-liar country. We have a situation whereby someNigerians will not loose their passports and willcome to Immigration office to say they lost theirpassports.“ That is the reason we are applying the stringentmeasure of ensuring that those who loose theirpassports come to Abuja to apply for a new one.We don’t say people should come to Abuja just be-cause we want them to come to Abuja, but be-cause we have an agreement with the British HighCommission to ensure that those who complainabout the loss of their passports are really gen-

Immigration to establish more passport offices in Lagos

APATRIOT, philanthropist, hu-manist and astute politician,Chief Alams Barovbe, haspassed on at the age of 76 .He was in a vehicle involved inan accident on his way to Asaba,the Delta State capital on Janu-ary 22, 2013, according to a state-ment by the head of theBarovbe family, Chief JohnsonBarovbe.“Chief Alams Barovbe wasrushed to the Federal MedicalCentre, Asaba and later to theDelta State Specialist Hospital,Oghara, where he died on Janu-ary 28.”He was robed Okakuro (Chief) ofAgbon in Ethiope East LocalCouncil of Delta State by the lateParamount Ruler, Ogunrimer-ime, Okpara I of Agbon King-dom.

uine. “ The Immigration boss noted that the Service hassent some of its men on training at Gwoza, BornoState in line with the transformation agenda ofPresident Jonathan in order to be equipped withmeasures in tackling the present security chal-lenges.Musa, a member of the National Institute, wasappointed the acting Comptroller-General of Im-migration Service by President Jonathan a fewweeks ago. He took over from Mrs. Rose Uzoma,who has proceeded on pre-retirement leave. Theappointment took effect from January15, 2013.Before his appointment, Musa was the DeputyComptroller General, Human Resources Direc-torate. He was also the Assistant Comptroller General incharge of Zone ‘B’ Kaduna, ‘E’ Owerri and ‘F’Ibadan at various times. Musa has served at the Passport Directorate atthe Service Headquarters. He holds a Masters De-

IBy Odita Sunday

Briefs

Barovbe

The late Dauda

Okoya

IN its determination to en-sure effective public watersupply in the state from thepublic mains, the Delta Stategovernment has set up a 14-member committee on infra-structure and water supply inthe state. The committee isheaded by Mr. HarrisonDafiovor.The Commissioner for WaterResources Development, Dr.Chris Oghenechovwen, dur-ing the inauguration,lamented that the state gov-

ernment had invested im-mensely in water infrastruc-ture but was yet to getcorresponding returns forthe benefit of the public.According to him, the com-mittee was set up to addressthe problems associated withpublic power supply and toregularly monitor the stategovernment’s water projectsbeing handled by the min-istry and make reports; tovisit water pumping stationsregularly to find out its stateof functionality with a view to

Delta sets up 14-man committee on water, infrastructureFrom Hendrix Oliomogbe, Asaba

Killed by STF…over driver’s naughtiness

THE Special Task Force (STF),Oper-ation Safe Haven, incredibly, ad-

mitted its men shot and killed apassenger and wounded its driveryesterday in Jos, one of Nigeria’sflash points. .Addressing a press conference at

the STF Headquarters in Jos, STFSpokesman, Captain Salisu IbrahimMustapha, said that at about11.30a.m. yesterday, “an unfortu-nate incident happened where apersonnel of the Special Task Forceon duty shot a driver of an Opel Vec-tra with registration numberEW336AA (Lagos), Mr. Salisu Musaand a passenger, Mr. Wadley Dauda(a member of staff of the Universityof Jos Security Department).“Preliminary investigation con-

ducted revealed that the soldier at-tempted to stop the driver whotook one way while approachinghis guard location at Green ParkNASCO Headquarters, Jos.“However, the driver failed to stop

and instead tried to forcefully ma-noeuvre his way out despite the sol-dier’s instructions for him to stop.The driver’s action was suspicious.

Consequently, the soldier cockedand released a shot, which piercedthrough the left shoulder of thedriver and unfortunately, hit Mr.

Wagley Dauda on his chest.”According to Captain

Mustapha, the victims were imme-diately evacuated to Jos UniversityTeaching Hospital for treatment bypersonnel of the Task Force. “How-ever, Mr. Wadley died in the theatrewhile receiving medical attention.Meanwhile, the soldier is undercustody undergoing investiga-tion.”

Captain Mustapha expressedworry about the incident. “The incident is worrisome and un-fortunate considering the circum-stances, which led to it. It was anact of lawlessness exhibited by thedriver, who tried to escape and notsubject himself for search to a se-curity agent on duty.“The Special Task Force wishes to

use this opportunity to call on thegood citizens of the Plateau to al-ways cooperate with securityagents at various duty locations.These men are deployed to main-tain law and order and therefore,need our cooperation to do so. Byso doing, collectively we shall re-store Plateau to its original and di-vine status as “Home of Peace andTourism.”Mustapha emphasized that the

soldier of the STF is under investi-gation to know whether the soldierkept to the rules of engagementwhen the soldier did what he didand whether he exhausted all av-enues before firing.He also explained that personnel

of the STF, at times, had to followone way during “emergencies” inorder to meet the needs of theemergencies. He tried to hold thedriver culpable because he refusedto stop when ordered by the sol-dier, exonerating the soldier, as hedid not know what he (the driver)was conveying when he refused tostop.

ensuring restoration of serv-ices where there had beenbreakdown as well as prop-erly document water supplyand sanitation facilities aswell as operational records inthe various pumping sta-tions.Oghenechovwen also saidthat the committee would re-view al project designs andspecification proposals in theministry, including the sub-missions of consultants, to at-tain uniformity of standardand to advise management as

appropriate.He added that the commit-tee would also collate allwater schemes facilitated bythe intervention agencies asthe Niger Delta DevelopmentCommission (NDDC), the Mil-lennium Development Goals(MDGs), the Delta State OilProducing Areas Develop-ment Commission (DES-OPADEC) and River BasinDevelopment Authorities, forpossible take- over by the ap-propriate parastatals of theministry, as well as do regu-

lar surveillance of pipelines.The Commissioner assuredthe committee of the supportof the ministry to enable it toeffectively exercise its man-date.Dafiovor pledged that thecommittee would meet theexpectation of the govern-ment.He commended the govern-ment for finding them wor-thy to serve on the committee, but sought for the ceaselesssupport of the ministry to en-able it succeed.

The driver failed to stopand instead tried to force-fully manoeuvre his wayout, despite the soldier’sinstructions for him to stop.The driver’s action wassuspicious. Consequently,the soldier cocked and re-leased a shot, whichpierced through the leftshoulder of the driver andunfortunately, hit Mr. Wa-gley Dauda on his chest

From Isa Abdulsalami; Jos

THE GUARDIAN, Monday, February 18, 2013 METRO 13

Winners emerge in TasteeSplash Love Promo

Baptist College begins10th Ministers’ Conference

WINNERS have emergedin the grand raffle draw

of Tastee Splash Some LovePromo, which was held onSaturday at the Tastee FriedChicken’s (TFC) headquar-ters in Victoria Island, Lagos. The star prize winner, Mr.Egbinola Olalekan Raufuwith ticket No. 1315, won freemeals and drinks for a cou-ple for one year in any TFCoutlet of his choice. The sec-ond prize winner, Mr. RomeoOrughor, Ticket No. 2054,was given free birthday par-ties for himself and his wife,as well as entertainment for20 of his friends.The third prizewinner, Mr.Ibrahim, went home withN50, 000 for each of the cou-ple.The Human Resources Man-ager, Mr. Akin Akinwunmi,said it was the tradition ofTFC to reward its loyal cus-tomers, adding “ This Valen-tine Splash Promo startedseven years ago, and the firmhas not defaulted in keepingto its promises to its teemingcustomers.”Raufu thanked TFC for itskind gesture but added, “ Myboss sent me to buy food atTFC. I am an auxiliary staffwith the CBN decided to putnor the promo and now Ihave won. Thank you TFC.”

Phillips dies at 85

ELDER Moses AdekunleAbiola Phillips has diedat the age of 85. He was de-vout Christian and a churchleader.A statement by Mr.Tokunbo Abiola Phillips, onbehalf of the family, says: “Aservice of songs holds onWednesday, February 20, athis residence, No. 20, BelloStreet, off Ojekunle Street,Papa Ajao, Lagos at 5.00p.m.A Christian wake holds onThursday, February 21, atthe same venue at 4.00p.m.He will be buried on Friday,February 22, at his resi-dence, No. 12, IkeoluwaStreet, opposite Solad Hos-pital, Baruwa, Ipaja, after afuneral service at 9.00a.m.He is survived by his wife,children and grand chil-dren.

THE 10th ministers’ confer-

ence of Baptist College ofTheology begins tomorrowto Friday at the Baptist Col-lege of Theology permanentsite Agbowa Ikosi.The Rector, Dr. Emiola Nihin-lola, said the theme of thisyear’s conference is, “The Pas-tor and Christian Missions. He added that the confer-ence “is a platform to equipand provide spiritual em-powerment for pastors toprepare them for the chal-lenges in ministry.”Ministering are Rev. Steve

Briefs Photonews

THERE was pandemoniumon Thursday at the prem-ises of Federal Teaching Hos-pital, Abakaliki; when apolice officer went berserkand beat up a medical doc-tor. He even released tear-gas canisters directly on thephysician’s face for al-legedly asking his pregnantwife probing questions,which the officer said vio-lated “Islamic tradition.”Meanwhile, the NigerianMedical Association (NMA),and the Association of Resi-dent Doctors (ARD) of thehospital, have called on thepolice authorities to dismissthe aberrant officer fromservice, stressing that noth-ing short of that could re-store their confidence toserve the people.Eyewitnesses told reportershow the police officer, an As-sistant Superintendent ofPolice (ASP), descended onthe medical doctor after hiswife complained that thedoctor, Dr. ChukwujekwuOkafor, was “raising issueswhich do not lie within thecontemplation of Islamic re-ligion.”“The angry police mancame alone and single hand-edly started beating up thedoctor. The doctor did notknow what was troublingthe man until the police of-ficer asked him why he wastalking to his wife. Thewoman came in for treat-ment and you know doctorsask questions to ascertainwhat medicine to prescribebut the police officerclaimed that the doctor wasnot supposed to talk to hiswife because ‘she is a

moslem woman,” a sourcenarrated.In a bid to arrest the uglydevelopment, Chairman,Medical Advisory Council,(CMAC) of the hospital, Dr.Chinedu Nwigwe, pleadedwith incensed medical doc-tors and staffers of the in-stitution not to take lawsinto their hands, assuringthem that the law musttake its due course on thematter.Reviewing the case, Dr.Nwigwe disclosed that thepolice officer, after makingseveral calls to his wife,came into the hospital andmet the doctor talking tothe wife, adding that hav-ing confirmed the doctor’sidentity through theCMAC’s office, went back tothe ward.“He felt aggravated thatsince he is a Muslim, andhis wife also a Muslim, no-body should talk to her. Heused tear gas on the doctor.He assaulted the doctorphysically. The doctor wasbrought to my office. Youcan see the police officers,the ACP here, and I musttell you that the hospitalwill not take this matterlightly. We are appealing toall of you that two wrongscannot make a right. Let usallow the judicial officersto carry out their duties.”When contacted, the Presi-dent, Association of Resi-dent Doctors, (ARD) FethaChapter, Dr. Oti Kennedy,expressed dismay at thebarbaric action of the po-lice officer, lamenting thatthe condition of thewounded doctor was dis-couraging and dehumaniz-ing.

Police officer assaultsmedical doctor for interviewing hisMoslem wifeFrom Leo Sobechi, Abakaliki

Permanent Secretary, Lagos State Ministry of Science & Technology, Nike Animashaun (left), State Commissionerfor Science Technology for Science & Technology, Adebiyi Mabadeje and his Education counterpart. YinkaOladunjoye, at the closing ceremony of Lagos State Ministry of Science & Technology (LASSTECH) Week ... at theweekend. PHOTO: FEMI ADEBESIN-KUTI

Phillips

Iriekpen-Oratokhai

Managing Director Tastee Fried Chicken (TFC), Mrs Pamela Olayinka Adedayo (left), star prize winner in The TasteeSplash Some Love Valentine promo, Egbinola Olalekan Raufu and Executive Director (TFC), Olubunmi Adedayo duringthe prize presentation... at the weekend.

Asiwaju Oluyemi Ogunyomi (middle) , Deputy Clerk, House of Representatives, Muyiwa Adejokun (second right) andother guests during the funeral ceremony of Pa Reuben Ogunyomi in Ugbo, Ilaje, Ondo State...on Saturday

Seinde Fadeni (left), his wife, Mrs. Ebun Fadeni (right) and former Housing Minister, Mrs. Mobolaji Osomo duringcelebrations to mark Seinde’s 50th birthday in Ikoyi, Lagos...yesterday

PHOTO: SUNDAY AKINLOLU

THE burial rites for Mrs.Bosede Iriekpen-Ora-tokhai, (nee Obilebo) whodied on January 2, 2012 at theage of 72, begin on Friday,February 22, 2013 with alying-in-state at her resi-dence, 20B, Eme Road Uhon-umora-Ora from 4-6pm, andService of Songs 6-8pm.Funeral service holds on

Saturday at St. Peter’s Angli-can Church , Uhonumora-Ora from 9am -noonfollowed by interment.Reception takes place at

Owere Primary School play-

Iriekpen-Oratokhai, 72, for burial

THE Chief Whip of PlateauState House of Assemblyand member representingKanke State Constituency,Timothy Golu, has donatedan electric-powered bore-hole to the Church of Christin Nigeria (COCIN) RayfieldJos.Speaking at the commis-sioning /dedication of theborehole at the weekend,the Deputy Governor ofPlateau State, AmbassadorIgnatius Longjan, de-scribed the lawmaker as vi-brant, dynamic, visionaryand focused leader, who isalways committed to allevi-ating the suffering of hispeople.The Deputy Governor alsochallenged other lawmak-ers and well-to-do individu-als to emulate the kind

gesture of the Chief Whipby providing succour to thepeople in their immediatecommunities, stressingthat access to clean waterand hygiene would defi-nitely improve on thehealth condition of the peo-ple.In the same vein, the StateCommissioner for WaterResources, Mallam IdiWaziri, commended thelawmaker for the initiative.He enjoined others to part-ner with the Plateau StateGovernment so that thestate could achieve its Mil-lennium DevelopmentGoals (MDGs) target ofwater for all by 2015.The Chief Whip said apartfrom providing water forhis spiritual constituency,he has also sunk boreholesfor the constituency he isrepresenting.

Plateau lawmaker donates borehole to COCIN

ground, Uhonumora-Ora,Edo State.

From: Isa Abdulsalami; Jos

Editorial

14 THE GUARDIAN, Monday, February 18, 2013

Super Eagles’ AFCON victory

LETTERS

Conscience is an open wound; only truth can heal it. Uthman dan Fodio 1754-1816

Glo is unfair to meSIR: In law, it takes two to

make a contract – the offer-or and the offeree. If an offeris made, there must be anacceptance. The GLO networkbreaches this principle inrespect of the Teen Jokes thatare frequently sent to me. Mycell phone number is08055604081.

There was no time that I evercontracted for Teen Jokes. Iam not interested in thejokes. First, the jokes aretime-wasting and as dry asthe dust. As much as N100 isdeducted from my usually-

lean account. This is unfair tome as a customer. This morn-ing, February 6, 2013, Ireceived this message: “Dearcustomer, your subscriptionof Teen Jokes at 8888 – hasbeen successfully renewed.You have been charged N100”.

Each time, I try to reject it bytext message. But, instead ofallowing the reply of rejectionto sail through, it is blockedby the network, thus givingthe false impression that Ihave accepted its renewal. Iam not interested in TeenJokes. For my disinterest, I vis-

ited Ikorodu office of GLO tocomplain, but the lady at thecounter was unable to sendmy text message through. GLOcannot compel me to pur-chase unwanted products orservices.

Through this medium, I amappealing to GLO to, pleasedesist from involving me in acontract, which is devoid ofacceptance. It is fraudulentand so, illegal. The NigerianCommunication Commissionmust step in, please.• Victor Oshisada,Lagos.

FOUNDER: ALEX U. IBRU (1945 – 2011)

THE crowning of the Super Eagles as the latest African football kingsat the 2013 edition of the continental tournament in South Africa

typifies the acclaimed resilience of the Nigerian spirit. It is a virtue thatfound a rebirth with some unlikely heroes who exhibited patriotism,discipline, hard work, perseverance, tenacity of purpose and faith inthemselves. It is true that the country could have achieved more insports in the decades past. But it is equally heartening that the soccerambassadors rose to surmount the challenges that had subdued thecountry’s potential, to re-enact the Nigerian qualities. Although a newvista has opened for progress, it is not necessarily because footballadministrators or political leaders have provided atmosphere con-ducive to optimal performance for the footballers. The Super Eagles’victory was achieved in spite of that failure. The greater lesson, there-fore, is for sports administrators to wake up to their responsibility, andbuild on the strong character exhibited by the Super Eagles players.

The Super Eagles’ triumph broke a 19-year jinx after the team’s lastvictory in Tunisia (1994), and this is significant in many ways. It cameagainst the backdrop of scepticism and cynicism of fans about thecapacity of the players, the coaching crew and their preparedness todo battle against more cohesive opponents. The usual lack of focus ofNigerian Football Federation (NFF) also gave little hope of success.

However, victory was sweet for millions of Nigerians who haveyearned for a happy occasion amid the prevailing cheerless politicaland socio-economic clime. The occasion proved again that sports isone of the country’s foremost unifying factors, providing hope for abrighter future; and making a statement that the citizens are willingto identify with the country if the leadership plays its role appropriate-ly.

Not surprisingly, many actors in football administration seized theoccasion to blow muted trumpets and seek undeserved credit fromthe Super Eagles successful outing. The country is certainly in direneed of men of character who can stand up for the people at all times.The Super Eagles’ victory is therefore a lesson in the abundant possibil-ities for change and development in the country. It only needs a rejuve-nated leadership spirit to enable it present its best men in every sector,and achieve optimum results. The present euphoria apart, what isneeded now is an institutionalised culture of excellence in the country.

The Super Eagles’ victory should serve as a springboard to rebrandNigeria globally because football has a special significance as a tool fornation-building. Nigeria truly needs football in particular, to achievegreatness. But the anticipated turn-around cannot occur in critical sec-tors without attitudinal change. Over the years, football administra-tors have been consumed by selfish ambitions and pursuit of pecu-niary ends. In the event, not only was football and footballers left tosuffer, but the nation was repeatedly robbed of the good feeling thatvictory brings, and the chance to forge a stronger national cohesion.This alone is sufficient incentive for government to pay more attentionto sports as a whole, and football in particular.

Coach Stephen Keshi deserves the entire accolade he has enjoyed forhis team’s feat. He has proved that indigenous coaches are not inferiorto foreign ones. He should, however, aspire to improve in global con-text. The NFF should continue to support him and take the controversyabout his purported resignation as an opportunity to redress past mis-takes and ensure that Keshi (or any other coach) functions withoutencumbrances.

Team member, Victor Moses, who defied all odds to play for his coun-try remains a metaphor for Nigeria’s greatness. He, along with othermembers of the team, particularly players in the local league, need tobe further encouraged to remain relevant for future glory.

However, reward for sportsmen and women should be structured ina way that is sustainable. A positive reinforcement is required. And forthe country to maintain a minimum level of success, adequateresources, commensurate with the target must be committed tohuman and material resources.

More important, administrators should strive to make sports fund-ing private-sector driven instead of the current heavy reliance on gov-ernment for support. Private sector involvement in sports encouragesproductivity and accountability, and this mechanism remains pivotalfor sustaining greatness.

On an epidemic of greed SIR: I could conjecture that

there is a correlationbetween the increasingaccess to satellite televisionand the epidemic of greedwe  are witnessing today inNigeria.

Just with the press of a but-ton or the click of a switchwe can instantly bring theglitz and glamour ofHollywood, Mumbai,Shanghai and Dubai into sit-ting rooms with the resultthat television might bemaking a lot of Nigeriansdissatisfied with their lives.  

Television fed Nigeriansdream of owning theclothes, cars, private jets andmansions they see not onlyon satellite  TV but also in

glossy magazines.  Thesemake many Nigerians recep-tive to the gospel of prosper-ity to the effect that con-sumerism has become thenew religion. Various brandsof goods are now to be wor-shipped as gods, so muchthat 140,000 Nigerians wereon “pilgrimage” to the shop-ping districts of London in2012. The new evangelists arethe advertising men, thesales men and brand con-sultants.

Today in Nigeria, peoplesteal money they do notneed simply because theyseem to have a child’s con-ception of happiness. To achild, more sweets meanmore happiness.   We expect

something better fromadults.

Scientific studies suggestthat it is our interaction withour friends and family thatmake us happy, not the size ofour bank accounts. A richman could feel lonely andunhappy in his mansion if hehas no friends to visit him orto appreciate him. We have allheard the phrase “The richalso cry” but the typical capi-talist would say: “it is better tobe rich and unhappy  than tobe poor and happy”.

As the author Carol Grahamputs it, “we live in a world ofhappy peasants and miser-able millionaires”.• Augustine Togonu-Bickersteth,London, England.

TheGuardianConscience, Nurtured by Truth

BUSINESS 15THE GUARDIAN, Monday, February 18, 2013

BusinessBusiness Interview P62

Shale oil production to boost globaleconomy by $2.7trSHALE oil production could

boost the world economy byas much as $2.7 trillion by 2035,while reducing global oilprices by up to 40 per cent,according to a new report byPricewaterhouseCoopers(PwC).

The report said that the oil,extracted through hydraulicfracturing, or “fracking,” couldadd as much as 3.7 percent to

global growth, the equivalentof adding an economy aboutthe size of the United Kingdom(UK) to the world, by 2035.

Experts in the oil and gasindustry are of the view thatNigeria may lose its place in theinternational scene if drasticmeasures are not put in placeto utilise the country’s gasresources, in view of the grow-ing demand for shale gas in theinternational markets.

Industry experts therefore

...Court upholds CITN’s mandateto regulate tax

THE Court of Appeal, LagosDivision, at the weekend,

upheld the March 12, 2007,Justice Lateefat Okunnu’sruling of the Lagos HighCourt, granting CharteredInstitute of Taxation ofNigeria (CITN), the power toregulate tax administrationin the country.   

The ruling was sequel toan appeal by the Institute ofChartered Accountants ofNigeria (ICAN), challengingthe verdict of the lowercourt, which granted themandate of tax administra-tion in the country to CITN.

Briefing newsmen of the

ruling in Lagos, thePresident, CITN, John Jegedeexplained that CITN hadapproached the Lagos HighCourt in 2005 in the case ofCITN (Claimant) vs. ICAN(Defendant) to determinewhether by virtue of the Actsestablishing ICAN and CITN,the then Claimant was notthe only body vested withpower to regulate the taxa-tion profession in Nigeriaand whether members ofICAN who had not regis-tered with CITN can practicetaxation or hold themselvesout as tax practitioners inNigeria.

urged Nigeria and other oilexporting countries to beginthe process of diversifying theirrespective economies to facethe challenge being posed bythe shale oil production poten-tial in the United States.

Meanwhile, the NigerianNational PetroleumCorporation (NNPC) hasallayed fear of possible threat ofshale oil production in someparts of the world to Nigeria’scrude oil export.

NNPC believed that the coun-try could always seek othermarkets for its crude oil if theUnited States refuses to importNigerian crude oil due to theirrecent exploitation of Shale gas.

A report released by PwCrecently, stated that the extrasupply could reach up to 12 percent of global oil production, or14 million barrels a day, andpush global oil prices down by

Nigeria’s big market critical for shipping services, growth, says Andersen

CONTINUED ON PAGE 16

CONTINUED ON PAGE 16

Bi-Courtney floors ministry, FAAN incourt over airport terminalTHE coast is now clear for the

eventual take-over of theGeneral Aviation Terminal(GAT) of the MurtalaMuhammed Airport by Bi-Courtney Aviation ServicesLimited, following the deci-sion of the Federal High Court,Abuja, which struck out thesuit filed by the Ministry ofAviation   and the FederalAirports Authority of Nigeria(FAAN) over the concession ofthe terminal.

The court, presided over byJustice A.R. Mohammed, in ajudgment delivered on Friday,described the suit by the min-istry and the Federal (FAAN asan abuse of the process of thecourt.

According to a copy of the rul-ing made available to themedia, Justice Mohammedheld that the issues canvassedby the plaintiffs (aviation min-istry and FAAN) had been con-clusively determined byJustice J. Chikere of the FederalHigh Court in Suit No:FHC/ABJ/CJ/50/2009.

The court noted that the deci-sion of Justice Chikere in theprevious suit, which was insti-tuted by Bi-Courtney AviationServices Limited (BASL), wasbinding on all agencies of theFederal Government.

Quoting aspects of JusticeChikere’s judgment, to justifyits ruling, the court stated:“The parties named in theRelief 7 are agents/agencies ofthe Federal Government. Theyare agents/agencies of anamed principal that is theFederal Government. Anyorder against the known prin-cipal binds the agents/agen-cies. The agents/agencies sta-tioned and operating at all air-ports terminal in Lagos Statecould not have operated with-out the support or approval ofthe Federal Government. “They are therefore restrained,prevented or prohibited fromoperating scheduled flights inand out of Lagos State fromany airport terminal other

than MMA2 or an airport ter-minal owned/operated by theplaintiff during the concessionperiod as stipulated in theAgreement.”

Justice Mohammed furtherheld that the issues raised inthe suit by the ministry andFAAN had equally been settledby the Court of Appeal, noting:“that was also held by theCourt of Appeal that by impli-cation, the FederalGovernment and its agencieshave their interest adequatelyrepresented by the Attorney-General of the Federation,being the Chief Law Officer ofthe Federation. It was furtherheld by the Court of Appealthat as an agency of the FederalGovernment, the second plain-tiff’s (FAAN) interest cannot bedifferent from that of theFederal Government.”

While reacting to the judg-ment, Bi-Courtney Limited(BCL), in a statement by itsspokesman, Dipo Kehinde, yes-terday, stated, “these decisionshave cleared the path for Bi-Courtney to take over theGeneral Aviation Terminal,which was recently renovatedby the Federal Government ofNigeria and commissioned onOctober 22, 2012”.

Bi-Courtney further noted

By Wole Shadare

By Adeyemi Adepetun

By Roseline Okere

that the GAT “was declared anintegral part of the MMA2 con-cession by the decision of theFederal High Court in 2009”. Kehinde noted that in a des-perate move to prevent thehanding over of the premisesto Bi-Courtney Limited, fourappeals had been filed and lostby the Attorney General of theFederation, Ojemaie Holdings

(Landlord to Arik Air), NUATEand ATSSAN (Trade Unionsunder the Ministry ofAviation) and FAAN.

The statement affirmed “itremains a monumentalembarrassment and a flagrantdisregard for the Rule of Lawthat the GAT was built by theMinistry of Aviation, whenthere was a clear restraining

order against the FederalGovernment of Nigeria on theconstruction of the terminal. Itis also a serious dent to the

image of the FederalGovernment as a promoter ofthe Rule of Law that an inno-cent company such as Bi-Courtney Limited could bedeprived of the fruits of itslabour by an obstinate refusalby the aviation ministry tocomply with simple and clearterms of an agreement”.

For quite some time now,both FAAN and Bi-Courtneyhad bickered over claims andcounter claims of who ownsthe area.While the aviation agency con-tinued to claim that it did notcede the ownership and man-agement of the GAT of theMurtala Muhammed Airport,Ikeja, to Bi- Courtney AviationServices Limited, the conces-sionaire of the privateTerminal 2, Bi-Courtney relieson agreement it signed in 2007that allows it to add the GAT toits area of operations to recoupits heavy investment.

Wale BabalakinStella Oduah, Aviation Minister

BUSINESS16

Court upholds CITN’s mandate to regulate tax

THE GUARDIAN, Monday, February 18, 2013

CONTINUED FROM PAGE 15

CONTINUED FROM PAGE 15

THE Over –The –Counter (OTC)market for FGN  bonds, last

week  recorded a turnover of4.249 billion shares worthN23.177 billion in 39,391 deals,were  transacted  this week,higher than a total of 3.572 bil-lion shares valued at N24.692billion, exchanged   in 39,321deals during the precedingweek.At the close of transactions lastweek, the financial services sec-tor continued  its dominanceas  the most active during theweek, contributing  76.53percent,  61.87percent,  60.51percent  to the total  equityturnover volume,  value andnumber of trades respectivelyin 3.252 billion shares valued atN14.339 billion exchangedhands by investors in 23,835deals. Specifically,   Unity Bank Plcfrom the Banking subsector,International Energy

Insurance Company Plc andSovereign Trust Insurance Plcof  Insurance Carriers, Brokersand Services  subsector of  thefinancial services sub-sectorwas the most active during theweek  when measured byturnover volume, as trading inthe shares of the three equitiesaccounted for  888.7 millionshares worth N700.6 millionin  2,634 deals.This represents 27.33per centand 20.92per cent of  theturnover volume recorded bythe sector and total turnoverfor the week, respectively.Further analysis of lastweek   transactions showedthat the Conglomerates sub-sector followed with a totalturnover volume of  363.5 mil-lion shares worth N964.6 mil-lion in 2,053  deals.Similar to the previous week,volume in the sector was boost-ed   by the shares ofTransnational Corporation ofNigeria Plc with a turnover vol-

ume of 355.1million shares val-ued at N698.5 million in 1,610deals.  Also traded during the weekwere 339 units of NewGoldExchange Traded Funds (ETFs)valued atN854,813, exchanged   in sixdeals in contrast to a total of539 units valued at N1.3 milliontransacted last week in fourdeals. In addition, 6,460 units of FGNbonds valued at N7.970 millionwere traded during the week in21deals.However, there were no trans-

actions in the State/LocalGovernment Bonds andCorporate Bonds/Debenturessectors.The NSE All/Share Index  depre-ciated  by  55.04  points or0.1per cent to close on Friday at33,258.45 while  market capital-ization of  the  listed equitiesdepreciated by  0.1 per cent toclose at  N10.643 trillion.

Three of the NSE sectorialindices  Bloomberg NSE 30,Bloomberg NSE ConsumerGoods and Bloomberg NSEBanking depreciated  by3.81per cent, 3.22per cent  and4.40per cent respectively,while Bloomberg   NSEInsurance, Bloomberg NSEOil/Gas and NSE Lotus II appre-ciated by  4.19per cent,  1.22per

cent  and  6.03per cent,  respec-tively.  

A review of the equity pricemovements last week indicat-ed that 51 equities gained while42 others recorded pricedeclines. 104 equitiesremained constant. Whencompared with the precedingweek, 73 equities gained while18 recorded price declines.

Gombe State N20 Billion FixedRate Bond (Series 1) 2012/2019,under  the N30 Billion DebtIssuance Programme wasadmitted on the Daily OfficialList  of the Exchange  on  11thFebruary, 2013 while supple-mentary Listing   of3,064,686,154 ordinary shareswere added to the paid-upshare capital of CrusaderNigeria Plc on February 15, 2013.

Jegede said the JusticeOkunnu`s rulling had in2007, among othersdeclared that:  that taxationwas legally recognised inNigeria as a profession sepa-rate and distinct from theaccountancy profession;that the Claimant was vestedwith power to regulate andcontrol the practice of taxa-tion in all its ramifications to

the exclusion of theDefendant and any otherprofessional body or insti-tute in Nigeria; that it wasillegal for any member of theDefendant who is not amember of the Claimant topractise, or hold him out aspractising, as a tax adminis-trator or tax practitioner for,or in expectation of, areward in Nigeria.According to Jegede, otherdeclaration in that sequenceincludes; that it was unlaw-ful for the Defendant to fore-stall or impede theClaimant’s efforts to regu-late tax practice and that anorder of perpetual injunc-tion was made restrainingmembers of the Defendantwho are not members of theClaimant from practising,representing, or holdingthemselves out as tax admin-istrators or practitioners inviolation of the CharteredInstitute of Taxation ofNigeria Act No. 76 of 1992,Cap. C10 of the Laws of theFederation of Nigeria, 2004.

Not satisfied with the deci-sion of Okunnu, J., the CITNboss said ICAN filed anappeal in Appeal No.CA/L/673/07 at the Court ofAppeal, Lagos Division andthat the appeal was decided

on Friday, February 15, 2013. He said the Court of Appeal

in its judgment upheld the1st, 2nd and 5th reliefsgranted by the court, whilesetting aside the 3rd and4th reliefs earlier grantedin favour of CITN.

“We are happy with theoutcome of the appeal asthe Court of Appeal hasrestated: That taxation is aseparate and distinct pro-fession from accountancyin Nigeria.

“That CITN is the only pro-fessional body vested withpower to regulate and con-trol taxation in all its rami-fications to the exclusion ofICAN and any other profes-sional body in Nigeria.

“That only members ofCITN can present or holdout themselves as tax prac-titioners and administra-tors”, he stated.

Jegede, who used the occa-sion to solicit for improvedtax administration inNigeria, said that, “despitethe outcome of this judg-ment, CITN will continue tomaintain its cordial rela-tionship with ICAN. CITNhopes that these sister insti-tutes would leverage onthis cordial relationship tothe benefit their members.”

Chief Economist at PwC andco-author of the report, JohnHawksworth, said: “Lowerglobal oil prices due toincreased shale oil supplycould have a major impact onthe future evolution of theworld economy by allowingmore output to be produced atthe same cost. These effectscould build up gradually asshale oil production rolls outacross the world to produce anestimated rise in global GDP ofaround 2.3 per cent -3.7 percent in 2035. “This would be roughly equiv-

alent to adding an economythe size of the UK to total glob-al GDP in that year. The PwCanalysis suggests that shale oilproduction has the potential

up to 40 per cent,PricewaterhouseCoopers said.

Shale oil, unconventional oil,produced from oil shale bypyrolysis, hydrogenation orthermal dissolution. Theseprocesses convert kerogen intosynthetic oil and gas, whichcan be used as a fuel or upgrad-ed to meet refinery feedstockspecifications.

The global impact of shale oilcould revolutionise the world’senergy markets over the nextcouple of decades, resulting insignificantly lower oil prices,shifts in Gross DomesticProduct, changing geopoliticsand new business models foroil and gas companies, accord-ing to new analysis from PwC.

to spread gradually from itscurrent US base, increasing toalmost 12 per cent of theworld’s total oil supply by 2035. Given the relative insensitivity

of oil demand to price changes,PwC scenario analysis suggeststhat oil price falls of as much as40 per cent could be needed by2035 to increase demand suffi-ciently to absorb this addition-al supply. However, the oilprice fall could be restricted toaround 25 per cent ifOrganisation of PetroleumExporting Countries (OPEC)reduced its output in responseto offset part of the rise in shaleoil output.

The report stressed the needfor governments in current netoil importing countries with

Investors stake N23.1 billion in FGN bondsBy Helen Oji

potential shale oil resources tounderstand the likely eco-nomic payback from creatingpolicies to encourage exploita-tion of shale oil, balancingthese against alternative localand national environmentalobjectives.

It stated: “Governments incountries reliant on conven-tional oil exports will need toadjust to lower revenue flowsin the long run and/or developtheir own unconventionalresources, including shale oiland gas. Shale oil (togetherwith shale gas) could influ-ence the dynamics of geopoli-tics as it increases energy inde-pendence for countries suchas the US and China andreduces the influence of OPEC.

NNPC allays threat to Nigeria’s oil, gas export

THE GUARDIAN, Monday, February 18, 2013 17

BUSINESS18

Dangote seeks improved investment profile for AfricaTHE  President and Chief

Executive of DangoteGroup, Alhaji Aliko Dangotehas urged developed coun-

tries to promote invest-ments in Africa rather thanproviding aids for the conti-nent, arguing that through

investment in the real sec-tor the region can achievereal growth and develop-ment.

Dangote, who was speak-ing at a recent event inLagos, added that Africanbusinessmen shouldincrease the tempo of theirinvestments across the con-tinent to spur growth anddevelopment in Africa.

Africa, he insisted, will bebetter developed throughinvestments by Africans.

He explained that mostpeople do not seem to knowmuch about Africa, but haveonly a notion of the conti-nent that is based on histo-ry or hearsay.

He enjoined the Westernnations not to “give anymore aid to Africa” but topartner with businessesthere and invest.

According to him,“investors will make more

money and it’s better foreveryone, and the conti-nent will experience realgrowth and development”

Dangote, who has invest-ments in about 14 Africancountries, acknowledgedthat business risks exist inAfrica but cannot posemuch impediment toinvestments

He said: “Before, there wasthe risk that governmentsmight nationalise assetsbut now we have invest-ment agreements in thecountry that says if it doesget nationalized, they’llhave to pay us”.

Dangote argued that fewpeople know much aboutAfrica and instead rely onhistorical information or

THE GUARDIAN, Monday, February 18, 2013

Before, there was the risk that governmentsmight nationalise assets but now we have invest-ment agreements in the country that says if itdoes get nationalized, they’ll have to pay us

Raises investment in Zambia to $800m

hearsay for its facts. “I amnot saying it is as good aselsewhere but investmentin the continent comes withalmost the highest ROI inthe world.

“In Zambia for instance, itused to be that Zambianshad to hold 51 per cent ofany business operating inthe nation. Today, the lawhas changed.”

Meanwhile, DangoteCement is set to open anoth-er $400 million cementplant in Zambia in 2014,bringing its total invest-ment in the country to $800million.

According to sources fromthe group “the opening of theDangote Ndola plant, whichis situated in Masaiti, willmake Dangote the biggestcement producer in the coun-try producing 3000 tonnesper day.

“The local cement produc-tion scenario will never be thesame again with the comingof Dangote, which has nowentered the Zambian market.Plans to open another 1.5 mil-lion tonne year capacity plantin the capital city after thecompletion of the Ndolaplant in 2014 have reachedan advanced stage.”

Executive Director, Service Bank, Enterprise Bank Limited, Mr. Aminu Ismail; Managing Director/Chief Executive Officer,Mallam Ahmed Kuru; Executive Director, Enterprise  Risk Management, Mrs. Louisa Olaloku and the Executive Director,Corporate and Investment Banking, Mr. Niyi Adebayo, at the Bank’s Media Interactive Section, at the weekend in Lagos.

BUSINESS 19

Honeywell Flour Mills postsN33b turnover in nine months

HONEyWELL Flour Mills Plc,has posted a turnover of

N33 billion for the nine-monthperiod ended 31st December,2012 from sales of its con-sumer brands includingHoneywell Semolina, WheatMeal, Noodles, Spaghetti,Macaroni, and SuperfineFlour.

Specifically, the company’sunaudited results for the nine-month period ended 31stDecember, 2012 showed a rev-enue growth of 18per cent overthe N27.9 billion achieved inthe comparative period of 2011.

According to a statementfrom the company, HoneywellFlourmill also recorded aProfit Before Tax (PBT) of N2.54billion within the same peri-od, adding that the companyexperienced strong growth inall its product categories with-in the period, as itsManagement was able toensure that resources wereprudently managed.

It noted that the companyhas continued to invest heavi-ly in marketing to support itsbrands and this investmenthas in the short term had ananticipated impact on mar-gins.

“The high wheat prices at theinternational commoditymarkets and increased mar-keting spend impacted PBTgrowth. As a consequence, PBTonly grew by 1% from N2.52 bil-lion.  We expect this toimprove in subsequent peri-od.

“Honeywell Flour will sustainits investments in marketingas the Company has seen andcontinues to see the benefits of

the marketing as evidenced inits high turnover growth rate.”

It added that the company,  inthe last quarter of 2012, com-pleted its capacity expansionproject, taking its installedmilling capacity from1,610MT/day to 2,600MT/daywith the installation of state-of-the-art production facilitiesat its Tin Can Port, Apapa loca-tion. 

“With the coming on streamof this, additional productioncapacity for its Flour, Semolinaand Wheat Meal brandsincreased considerably.Revenue is expected toincrease considerably in thenext quarter.”

The Company had in itsrecent capital investmentsincreased its total assets by 32per cent, from N45.4 billion asat 31st December, 2011 to N60billion as at 31st December,2012, adding that going for-ward, shareholders’ value willfurther appreciate significant-ly as the new 1,000MT/day millis expected to boost theCompany’s top- and bottom-line as it continues to satisfythe growing needs of its teem-ing customers and con-sumers.

Mr Babatunde Odunayo, theChief Executive Officer ofHoneywell Flour Mills Plc said,“we continue to appreciateour ever loyal customers whoare responsible for our consis-tent quarter-to-quarter solidperformance. We are glad thatour persistent focus on qualityas our unique selling proposi-tion has resonated well withour consumers, thereby result-ing in the 18% growth inturnover.

NCC, operators seek subscribers’ protection of telecoms infrastructure

FOR improved telecommu-nications services in the

country, the NigerianCommunicationsCommission and telecomsservice providers have calledon telecoms subscribers tojoin hands with the sector inensuring protection of tele-coms infrastructures locatedin their respective areas.

This appeal was made at theweekend at the 54th editionof Consumer OutreachProgramme of theCommision in Ikorodu, Lagoswith the theme ‘Protection ofTelecom Infrastructure.’

Speaking at the event attend-ed by residents and otherstakeholders in the Ikoroducommunity, ExecutiveCommissioner, StakeholdersManagement, NCC, Mr.Okechukwu Itanyi, said thetheme became imperative astelecoms infrastructures havea direct and indirect impacton the spread of telecom serv-ices to the nook and cranniesof the country as well as theQuality of Service being expe-rienced by the consumers.

Itanyi, who described tele-coms infrastructures as theblood that sustains the indus-try, stressed that without tele-coms infrastructure, therewould be no telecom service.He added that protection oftelecoms facilities in everylocality is a collective respon-sibility.

“It is our collective responsi-bility to protect these infra-structure from vandalism,stealing and any other abus-es. In fact, telecom infrastruc-tures should rank among thecritical infrastructure, whichshould enjoy priority atten-tion and protection in thecountry.

“On this basis, I wish toenjoin you as responsible citi-zens of this country to knowthat one of our obligations isto discourage unauthorisedusage and conversion to oth-er uses of anything called tele-com infrastructures,” he said.

Representatives of the tele-coms firms such as MTN, Glo,Airtel and Etisalat, whobemoaned the various dam-age hauled against their infra-structures at different locali-ties in the country in recenttime, also appealed to the sub-scribers on the need to sup-port the operators.

Meanwhile, telecoms sub-scribers have condemned arip-off by the operators,which sometimes deducttheir subscribers’ credit forcertain unsolicited ShortMessage Service sent to thesubscribers.

They also decried the poorcustomer attendance theyexperience, even as some oth-er subscribers raised the issueof poor services which NCCand the operators attributed,in part, to vandalism of theirinfrastructure which havenegative consequence on theservice delivery.

Only recently, MTN reportedthat some of its fibre cableswere damaged several loca-tions across the country.

In a statement released bythe mobile services provider,MTN Corporate ServicesExecutive, Wale Goodlucksaid that the company’s engi-neers were currently battlingto restore service quality toacceptable levels followingthe massive attack on thecompany’s extensive fibrenetwork.

Goodluck said the fibre net-works were damaged in sevendifferent areas: between PortHarcourt and Eket, Kano and

Zaria, Abuja and Akwanga,Asaba and Owerri, Ahoadaand Port Harcourt, Benin andOwo, and Ikeji and Owo.

Goodluck said: “To put mat-ters in perspective, MTN onaverage suffers more than 70fibre cuts in various locationsacross the country everymonth, but this is mostunusual in terms of thespread and the coordination.It is almost as if it is a deliber-ate act targeted at disruptingservice delivery.”

Goodluck concluded byappealing to the people ofNigeria.

“We have to again call onmembers of the public toassist by reporting any suspi-cious activity aroundtelecommunications installa-tions, which are criticalnational infrastructure. By sodoing, you will play your partin protecting your right togood services and the fullbenefits of the ICT revolu-tion.”

By Adeyemi Adepetun andBankole Orimisan

THE GUARDIAN, Monday, February 18, 2013

President of Dangote Group, Aliko Dangote (left); discussing with the Governor of Edo State, Comrade Adams AliyuOshiomole, during a recent visit by the Dangote team to Edo State.

By Helen Oji

THE GUARDIAN, Monday, February 18, 201320 INTERNATIONAL ECONOMY

GROUP of 20 finance chiefstook a harder line against

governments trying to influ-ence exchange rates as theysought to tame speculation ofa global currency war withoutsingling out Japan for criti-cism.Two days of talks between G-

20 finance ministers and cen-tral bankers ended in Moscowwith a pledge not to “targetour exchange rates for compet-itive purposes,” according to astatement handed to reporterstoday. That’s stronger thantheir stance three months agoand leaves Japan’s governmentunder pressure to stop pub-licly giving guidance on theyen’s value.

With the yen near its lowestlevel against the dollar since2010, policy makers areattempting to soothe con-cern that some countries aretrying to weaken exchangerates to spur growth throughexports. The risk is a 1930s-style spiral of devaluationsand protectionism if othercountries retaliate to safe-guard their own economies.“Currency wars are globally

suboptimal because if onecountry devalues its curren-cy, other countries can strikeback and everybody gets intoa vicious circle,” Reserve Bankof India Governor DuvvuriSubbarao told reporters inMoscow at the weekend.

The new commitment isprobably aimed at telling theJapanese that while they canstimulate their economy,they shouldn’t point to spe-cific yen levels as desirable,said Chris Turner, head of for-eign-exchange strategy atING Groep NV in London.While the currency may ini-tially climb next week it willsoon resume its slide toward100 per dollar from 93.50 asthe Bank of Japan keeps eas-ing policy, he said.“It makes it harder for the

Japanese to talk down theyen, but they will let theirpolicies do the talking,” saidTurner.Japan has faced suspicion

it’s trying to depreciate itscurrency, which lost aboutseven percent this year asPrime Minister Shinzo Abe,who took office in December,campaigns for looser mone-tary policy to end 15 years ofdeflation.Japanese officials in Moscowdenied driving down theircurrency, arguing its fall wasa byproduct — not a focus — oftheir effort to revive theworld’s third-largest econo-my.“The Bank of Japan’s meas-

ures have been and willremain targeted at achievinga robust economy throughstable prices,” Bank of JapanGovernor Masaaki Shirakawasaid today. The G-20 state-ment is “absolutely in thesame spirit as our monetarypolicy,” he said. FinanceMinister Taro Aso said astronger Japan would “have apositive impact on the globaleconomy.”

“There was no censure ofthe Japanese attitude, whichwas considered a policy todevelop its economy and notto intentionally devalue,”said Brazilian FinanceMinister Guido Mantega,who popularized the term“currency war” in 2010.

“Talk of currency wars isoverblown,” saidInternational Monetary FundManaging Director ChristineLagarde. “People did talkabout their currency wor-ries.”The Japanese defense echoescomments by U.S centralbankers, who have run intocriticism from emergingmarket officials such asMantega for embracing stim-ulus, which has then under-

mined the dollar andstrengthened other curren-cies.In a nod to such complaints,the G-20 members agreed tomonitor and minimize any“negative spillovers” and saidthat monetary policy shouldalways be aimed at domesticneeds, according to the state-ment.Developed nations should

“pay attention to the effectstheir monetary policies haveon external markets,”Chinese ViceFinance Minister ZhuGuangyao told the state-runXinhua news service fromMoscow.Federal Reserve Chairman

Ben S. Bernanke said yester-day in Moscow that the U.S.has deployed “domestic poli-cy tools to advance domesticobjectives,” adding that bol-stering the U.S. economy willsupport world growth.Unlike their American coun-terparts, Japanese officialsincluding Abe have com-mented publicly on theirexchange rate’s level, fanningspeculation that they wel-come its fall and that theyen’s weakness plays a part intheir recovery strategy.Japanese ruling-party law-

maker Kozo Yamamoto, whois close to Abe, said in a Feb. 14interview it would be “appro-priate” for the yen to trade atabout 95-100 to the dollar.Deputy Economy MinisterYasutoshi Nishimura said onJan. 24 that it wouldn’t be aproblem if the yen reached100.U.S. Treasury UndersecretaryLael Brainard used a speechin Moscow to criticize “loosetalk about currencies.”

The G-20 meeting finishedafter a week of volatility infinancial markets that startedwhen the Group of Seven richnations said on Feb. 12 that itsmembers won’t use policiesto “target exchange rates”and would focus on domesticneeds. Confusion then brokeout as G-7 officials bickeredover whether their first jointcomment on currencies since2011 implied irritation withJapan.The yen fell yesterday for thefirst time in four days as earlydrafts of the G-20 statementfailed to echo the G-7’s vow.Part of the pledge was addedfollowing all-night talks inthe Russian capital as theclub of the largest developedand emerging economiesalso reiterated they will move“more rapidly” toward mar-ket-determined exchangerates and “refrain from com-petitive devaluation.”The G-20 also said that whilethe risks to the world econo-my have receded, its growthremains too weak and unem-ployment is too high in manycountries. That requires morework to create a strongermonetary and economicunion in the euro area,resolve uncertainties sur-rounding the budgets of theU.S. and Japan and boostdomestic demand ineconomies with large tradesurpluses.Advanced nations accepted

the U.S.’s position by not set-ting new fiscal targets toreplace those they agreed onin 2010 and which many ofthem are on course to miss.They pledged instead todevelop “credible medium-term fiscal strategies.”

G-20 pledges not to target exchange rates to aid economy

China sees possibility of deal with EU on airline emissionsCHINA believes it can agreewith the European Union

on ways to limit airline emis-sions without relying on theemissions trading system,National Development andReform Commission vicechairman Xie Zhenhua said.

“We have lot of optionsbesides the emissions tradingsystem to achieve emission

targets in the aviation sector,”Xie said in an interview in thesouth Indian port city ofChennai. “For example, tosave energy, improve energyefficiency, to improve thelevel of management. All canwork together and the emis-sion trading system canhelp.”A United Nations meeting on

climate change in Warsaw atthe end of this year is impor-tant because it will lay thebasis for future negotiations,Xie said.“China will actively partici-

pate in the negotiation foremission reduction and wedo hope that through ourjoint efforts we can achieve aresult this year,” the official

THE GUARDIAN, Monday, February 18, 2013 21

InvestmentWatchPublished in association with

Investment Risks EvaluationINTRODUCTION

RISK and investment are inseparable fea-tures of wealth accumulation and manage-

ment, and while it is a well-known maxim that“the higher the risk in an investment, the high-er the potentials for greater returns”, it isimpossible to eliminate all risk in makinginvestment decisions, therefore understand-ing and managing risk is one of the mostimportant elements in financial education.In an earlier edition of INVESTMENT ONE edu-cation series “Managing Investment Risk”(please visit our website at www.investment-one.com to download a soft copy) publishedin the Guardian newspaper of 4th June,2012,we highlighted the principal features and therequisite knowledge, investors need to enablethem understand their risk appetite and pro-file towards putting in place a robust risk man-agement system.In this edition of the series, we shall x-ray sim-ple due diligence questions that every investormust ask and answer before making invest-ment decisions.Due Diligence TestIgnorance about investing is very expensiveand has made many to lose money. The onlycure is due diligence. Due diligence is aroadmap for existing and potential investorsin understanding whether a specific invest-ment will meet their investment horizon, risktolerance and investment strategy.Due diligence is a critical skill that separatesthe professional from the amateur investor. Itprovides a frame work for making intelligentand profitable investment decisions andaddresses the strategic function an invest-ment decision serves in a portfolio, the riskprofile for the investment, and how to man-age identified risk towards controlling poten-tial losses from going bad.Due diligence test safeguards amateurinvestors from making rash investment deci-sions induced by unverified facts or in theirbid to chase hot tips without seeking the opin-ion of expert counsellors.A wholesome investment risk evaluationinvolves thorough investigation into eachinvestment, broker or money manager beforesigning up. Every due diligence checklist mustanswer four basic questions which include:what is the investment risk profile? What arethe expected investments returns characteris-tics? Are the people behind the scene compe-tent and are they honest?Though, the risk profiles itemized below aredesigned to illustrate investing in stock, thesame principles can be applied to every assetclass in an investor’s portfolio. It is wiser todiversify away those risks that can be managed. Below are questions an investor must ask andreceive answers before making an investmentdecision:• How can money be lost in a particular invest-ment?This question buttresses the first law of invest-

ing; “Never lose money”. An investor mustfocus on the preservation of the capital invest-ed before considering the returns on the cap-ital invested. An investor cannot say he under-stands an investment until he learns about allthe ways money can be lost. The first step there-fore is to identify in advance all the major risksthat can lead to losses and then apply the sec-ond step of proactively managing the man-ageable risk.• Identify the risk profileAfter identifying how money can be lost, thenext step is to identify the risk profile andgroup them with recourse to the portfoliodesign and investment strategy and other riskvariables such as:• Market risk is associated with the day-to-daypotential for an investor to experience lossesin securities prices; it generally leads to adownturn in investor’s appetite for stockscausing an overall reduction in the valuationlevel of equities. This risk is manageablethrough a sell discipline, hedging, or bydiversifying into non- correlated marketssuch as real estate, commodities, cash, or inter-national equities rather than solely domesticequities.• Company specific: This risks include thingslike accounting scandals, lawsuits, corporate governance and misman-agement – anything unique to the companythat is not part of the industry. These risks aremanaged by diversifying among multiplecompanies. Mutual funds and exchange trad-ed funds are great examples of simple, costeffective tools to diversify away company spe-cific risk.• Investment style: The market will vary howit rewards or punishes different investmentstyles over time. For this reason, you shouldmanage this risk by not concentrating tooheavily in any one specific investment stylelike micro- cap, value, or growth.• Industry specific: The risks include a down-turn in demand for widgets, changes in con-sumer tastes, disruptive technology changes,and industry law changes. This risk is con-trolled by not concentrating your portfolio ina single industry.Create a controlled risk profileA requisite follow up after defining the riskprofile of an investment is to first quantifyprobable loss and design ways to manageaway whatever risks that can be eliminated,and second you must accept only investmentswhere the remaining uncontrolled risk pro-file does not overlap with other investmentsin your portfolio. The end result is a minimiza-tion of the total risk for the entire portfoliobecause it is composed of mostly uncorrelat-ed, managed-risk investments.An investor’s ability to manage risk is limitedonly by knowledge and creativity. The criticalpoint to understand is that each investmenthas unique risk management tools availablethat result from the unique characteristics of

the investment and the market it trades in.The hallmark of great investors is not juststrong positive returns, but consistent returnsthrough all market conditions. This can onlybe achieved by focusing on controlling lossesthrough a risk management discipline. Theobjective is to make money; so the game is nat-urally played by offensively looking for theprofit. By disciplining yourself to look for theloss, you will bring much needed balance tothe investment equation.• What is the exit strategy?Every investor must have a defined exit planbefore acquiring an investment because noinvestment will last forever. Times changesand so does an investor’s investment objec-tive. Besides the foregoing reasons, the reasonfor acquiring an investment can change i.e. aviolation of the term of the investment cancall for an exit without delay. By having a blue-print in place, it prevents the confusionbrought about by a hasty selling decision.It is important to define the assumptions andthe premises for entering into an investmentto allow an investor to prune his investmentto be congruent with the changes in time. Aninvestor can then conserve capital to ensurepreparation to invest in the next opportuni-ty.• How the investment will helpachieve portfolio objectives?The principal portfolio objective of mostinvestors is to maximize profit with minimumrisk and this can only be achieved by buildinga diversified portfolio of non-correlated, riskmanaged, high return investment strategiesthat capitalize on a competitive advantage inbusiness, real estate, and/or paper asset invest-ing.Besides having a portfolio objective, aninvestor must also have a personal objectiveanchored on values, special interest and skills.Though investment is a lifelong process, oneof the biggest obstacles to achieving successis the distractions caused by the many oppor-tunities that are advertised. The solution is tostreamline investment portfolio and adhereto one or two ways. It is important to note thatnobody should try to be a master of all invest-ment because diverse investment strategiessuit certain characteristics, interest, invest-ment goals, and risk tolerance quotient dueto the peculiarity of investors.• Does the investment make business sense?This point requires the application of com-mon sense to figure the missing link in a mar-ket. Investing is an art and science that mustultimately make good business sense, whichtranslates to mean that the earning, valuation,and returns on an investment must be in con-sonant with the competitive advantage pos-sessed by the underlying business.There is no valuation model in existence thatcan make business sense out of an inflatedprice model because above market returnsand excessive valuation can only be support-

Success in investing is founded on seasoned strategies and picking up your phone to seek the guidance of veritable financial advisermay just be the best decision an investor can make towards mitigating the pitfall those plaque investors in the quest to make informed financial decisions.

Join us next week Monday to learn more on what it takes to make well informed investment decisions.Kindly let us know if you have found this article useful. Please contact us at: enquiries@investment-one.com

ed if a significant competitive advantage cou-pled with barriers to entry for future competi-tors exist.The following are salient points to note to avoidfraudulent investment mania proposals:- Is the investment offering outrageous inter-est rates and guaranteeing theprincipal invested? Is the business idea backedby wordy and implausibleterms?- Is the business promoter going through theheadache to corner smallinvestors when a legitimate business can

attract all the capital with fewerphone calls at lower interest rates.- What is backing the exorbitant returns andguarantee of principal?• What is the Impact of the investment?The immediate impact of the investment onthe risk profile and portfolio objective of theinvestor is a principal determinant whetheran investment will be added or not. Only invest-ments that either lowers your portfolio risk orraises its returns should be added to aninvestor’s portfolio holding.Examples of assets with low or negative corre-lation to domestic stocks include commodi-ties, gold stocks, real estate, and certain alter-native investment classes like hedge funds.For investors intending to invest in mutual orhedge funds; they must conduct a comprehen-sive due diligence that must cover the fund’sdefined investment strategy, historicalreturns on funds invested, a documented snapshot of the funds, the classification of the assetsunder management, the fund’s terms anddetails, risk factors as well as valuation of thefund.Also, to facilitate a well-rounded understand-ing, investors are advised to read the fund’sprospectus, understand how a fund’s asset arevalued and how fees are charged and as wellconsult professional advisers in when indoubt.The essence of investment risk evaluation is toconduct a reasonable verification and take pre-cautionary measures to prevent foreseeablerisks. The key to this process starts with know-ing how and when to ask all the right ques-tions. An informed investor who is willing toimbibe investment knowledge remains thenemesis of con men. The recent spate of won-der banks defrauding investors is a clear exam-ple of absence of well conducted due diligencetest on the part of would be investors.We believe the cardinal questions highlightedherein will go a long way in ensuringa reduction in the incidence of investors beingdefrauded. It’s important that investors whocannot afford the time and exertion of con-ducting an investment risk valuation be it inequities, commodity, real estate or moneymarket must entrust their investment deci-sions to trusted and competent financial advis-ers who can partner with them to achieve theirinvestments plans.

Insurance firms list benefits ininvestment-linked coverINan effort to bring the benefits of insuranceto the door steps of majority of Nigerians,

underwriting companies have brought out anumber of investment-linked products to pro-mote insurance and saving culture of the peo-ple.For instance, some of the policies provided for

a return on the policyholders′ investmentwhile additional life assurance benefits ispayable to the dependants of the policyholderin the event of death within the policy term.Chieftains of some of the underwriting com-

panies told The Guardian that the aim was tocreate insurance awareness on the benefits andthe opportunity that are available in insuranceproducts to save money.The managing director, Aiico Insurance Plc,

David Sobanjo, the leading life underwritingfirm in the market, told journalist recently thatAiico Corporate Savings Plan was an invest-

ment policy that offered protection to theclients in addition to life assurance benefits. The policy provides a return on the holders

investment while additional life assurance ben-efit is payable to the dependants of the policy-holder in the event of death within the policyterm.He dislosed that the saving plan was suitable

for individuals, members of societies, coopera-tives and employees of organizations that wereeager to save through payroll deductions. According to him, the rural population and

others with seasonal incomes were eligible tosubscribe to the plan as long as they were deter-mined to invest part of their earnings to yieldgood returns and secure their financial future.Sobanjo, explained that the minimum policy

term was 10 years, adding that in order to makethe product affordable to majority of the popu-lace in the country, people can contribute aslow as N5,000 per month to participate in the

Insurance

Bankers committee lauds NAICmanagement

BANKERS’ Committee delegation hascommended Dr Tijjani Garba, theActing Managing Director of NAIC

for his “rational decision to dialogue”with the bankers over the pending courtcases instituted by the Corporation forthe failure of some banks to remit insur-ance premium for the N 200 billionAgric loan released to commercial bankssince 2009 by the Central Bank ofNigeria through its CommercialAgricultural Credit Scheme (CACS)

A two-man delegation of the Bankers’committee comprising of Mr. PaulEluhaiwe , Director DevelopmentFinance of the (CBN) and Mr. Jibril Aku,the Managing Director of Ecobank, wasat a scheduled meeting with the NAICManagement , where the team disclosedthat the Bankers’ Committee had decid-ed to reach out to the new Managementto persuade it to stand down the pend-ing litigation over the N 200 billionCACS premium payment, saying NAICshould rather look ahead at “the sus-tainable and tremendous opportuni-ties” henceforth available to the two par-ties.

Aku who pointedly advised NAIC toadopt a more robust and aggressivemarketing strategy with the view tomaking its products and services veryattractive to the banks and the insuring

public to buy into NAIC products, forthe purpose of optimizing the increas-ing insurance businesses the bankerswere offering .

He further argued that a sustained lit-igation was not in best interest of bothparties, as this would further harm theirbusiness and social relationships andtherefore call for mutual resolution ofthe dispute out of court, saying that “weshould both look into the future togeth-er, because it is in the long term interestfor us to work together”.

He added that NAIC must step- up itsprofile and strengthen its niche in themarketplace for more patronage andsustainable insurance business, particu-larly where the agricultural insurancemarket was already open to all insur-ance firms, giving options andincreased competitiveness by the newentrants in the agric insurance busi-ness.

Responding, Dr. Garba disclosed thatthe new Management was willing toshift its ground on the pending litiga-tion but prayed for more mutual andincreased business relationship withthe commercial Banks to enable NAIC tofeel compensated and therefore regainfrom the loss of premium arising fromthe non-payment by the banks over the

By Joshua Nse plan.In the event of the death of the policyholder

while the policy is in force, he said, his depen-dants will be entitled to a life assurance bene-fits of three times annual contribution subjectto a maximum of N2 million.In his remark, the Group Managing Director,

Mutual Benefits Assurance Plc, Akin Ogunbiyi,said during the company′s thanksgiving serv-ice in Lagos recently that the firm, most espe-cially in the life portfolio, has over 40 productsthat are investment linked, affordable andgives the people the opportunity to savemoney and protect their lives.

He said “Our mission is to transcend theexpectations of our customers for the satisfac-tion of their wealth protection needs throughthe provision of qualitative insurance and riskmanagement services thereby creating valuesfor all stakeholders.”According to him, “Our investments in trans-

portation in Lagos State alone created over athousand jobs. Our investment in MutualBenefits Homes and Properties with currentinvestment value of N3 billion In Ekiti, FederalCapital Territory (FCT), Kano, Kwara and Kogistates our current investment currently stoodat N600 million.”He said, “Creation of first of its kind Credit

Bond Policy for Bank of Infrastructure thatensures that transporters have access to thePublic Mass Transit Revolving Fund. Ourempowerment and value creation includesIrewolede Scheme, RETEAN Bus Scheme, ImoState Transport Scheme, Transport Scheme forNigerian Union of Teachers in (Kano, Jigawa,Taraba States), and Airport Car Hirer′sAssociation of Nigeria (Nationwide).Ogunbiyi said that the company was not just

taking risks but calculated risk based on strate-gic planning and credible partnership.

22 INSURANCE

yearsHe said NAIC had therefore,” in prin-

ciple agreed to forge ahead’ but must beassured of the Bankers’ commitment toincreasingly patronize NAIC in both theprimary and non primary agriculturalbusiness that the Banks could offer.

He lamented that NAIC had alreadylost colossal amount of money over thefailure of the Banks to remit the manda-tory insurance premium at source fromall the agricultural loans paid to farmersacross the country, praying that withthe huge expenses arising from thepending litigation, the Banks shouldshow both appreciation and commit-ment towards the Corporation over thepremium loss it had suffered.

Garba harped over the loss of coun-terpart funds as premium subsidy fromthe Federal and State Government aswell as the return on investments on theaccruable revenue from these subsidies.

The Managing Director thereforecalled for mutual and sustainable areasof partnership to enable both parties tocontribute meaningfully to the rapideconomic development of the nationand further stressed the need toenhance the drive towards actualizingTHE Agricultural TransformationAgenda of President Jonathan, throughadequate lending facilities and insur-

Regulators review modalitiesfor group life, annuity

THE National PensionCommission (PenCom)

and the National InsuranceCommission (NAICOM) helda joint workshop for thereview of guidelines ongroup life insurance policyand regulation on annuityunder the ContributoryPension Scheme (CPS).In his paper “An overview

of the guidelines on grouplife insurance policy”, SamChukwuka Onyeka, NAICOMsaid, the guidelines havebeen jointly issued byNAICOM and PENCOMunder the provision ofSection 9(3)of the PensionReform Act (PRA) 2004, toestablish uniform set ofrules and standards for theapplication of the provisionof the section.He explained that the gen-

eral requirements, the costof arranging life policy to beborne by the employer, lifepolicy is in addition to thecontributory pension asrequired, policy to be pur-chased from a Nigerian reg-istered life insurance com-pany, consortium of eligibleinsurers to be constitutedfor operational ease for FGNemployees, private sectoremployers at liberty toselect any approved insurerof their choice, employersare not allowed to selfinsure, and board ofenquiry in case of missingperson to be established byPENCOM pursuant toSection 6(1).

To qualify to provideemployee life insurancecover, an insurer must be inthe list of companieslicensed and approved byNAICOM to provide same,and must have met, mini-mum acceptable standardsfixed by PENCOM.

On regulation on annu-ity,Onyeka said, a retiringemployee has option to pur-chase life annuity or pro-grammed withdrawal or acombi nation of both. He

cannot be compelled byany person or entity tochoose between life annu-ity and programmed with-drawal.According to him, annuity

contract for the purpose ofthe regulation is life annu-ity for the life time of theretiree, once contract issealed, a retiree cannotchange from life annuity toprogrammed withdrawal,where a retiree chooses towithdraw a lump sumbefore purchasing annuity,the amount required topurchase annuity must firstbe determined before anysuch lump sum withdrawalcan be effected, amountproposed for purchase oflife annuity by retiree mustnot be less and 50 per centof his annual remunerationas at the date of his retire-ment as required by thePRA 2004, retiree canchange his insurer but notearlier than two years afterexecution of annuity con-tract, guaranteed periodmust not be less than 10years.

In her remark, the ActingDirector General, PenCom,Mrs Chinelo Anohu-Amazusaid that the essence of theworkshop was to providean avenue for all stakehold-ers to review the implemen-tation of the guidelines onlife insurance policy andthe regulation on annuitiesunder the CPS.

According to her, this iswith a view to exposingoperators to a better under-standing of the rudimentsof annuity and group lifeinsurance policy as well astheir responsibilities. It isalso aimed at addressingsome of the challengessuch as misinformation,reporting requirementsand other operationalissues encountered in thecourse of implementingthe guidelines, regulationwhich may warrant someamendments.

Managing Director, EcoBank Plc, Jibril Akku (left); Acting Managing Director, Nigerian Agricultural Insurance Corporation (NAIC), Tijjani Garba; and Director,Development Finance, CBN, Paul Eluhaiwe; during the Bankers’ Committee’s visit to NAIC House, Abuja, recently

THE GUARDIAN, Monday, February 18, 2013

INSURANCE 23THE GUARDIAN, Monday, February 18, 2013

Continental Re restatescommitment to CSRCONTINENTAl

Reinsurance   Plc, hasexpressed its commitment toimproving the lot of the lessprivileged in the societythrough Corporate SocialResponsibility.

In a statement on Friday, thefirm said this is in further-ance to its corporate commit-ment to giving back to hostcommunities.

The company got involvedin the house sponsorship pro-gramme of the SOS children’sVillage at Owu Ijebu in Ogunstate.

Consequently, the companyassumed the financialresponsibility for ten chil-dren ranging in ages fromthree to 14 years. This spon-sorship will take care of thehealth, educational and phys-ical needs, amongst others ofthe children on an annualbasis. The formal unveiling of

the sponsorship plaque washeld recently.

The Managing Director,Continental Re, Dr. FemiOyetunji, , stated that the visitto the SOS Village was part ofthe company’s way of givingmoral and financial supportto the children, because itwants them to have access toa bright future.

He added that ContinentalRe will continue to add valueto the society where it is oper-ating through corporatesocial responsibility. Heassured that the firm will con-tinue to be involved in initia-tives that would help to eradi-cate poverty in the societyand contribute to the socialand economic developmentof the country.

Representatives of the com-pany also paid a visit to thechildren during the last fes-tive season and donated vari-

ous items, including bever-ages, detergents, food amongother things to the children.

The Company noted that itis also involved in givingfinancial assistance to otherorganizations involved withthe care of hearing and sightimpaired children and othersocial care initiatives, notonly in Nigeria but also in itsother regional offices, locatedin Abidjan, Douala, andNairobi.

Some of the organizationsthat benefited from the finan-cial donations are; PacelliSchool for the Blind andPartially Sighted Children,lagos; Onikan Health Centre,lagos; Wesley School forHearing Impaired Children(1&2), lagos; NationalHandicap Carers Association,lagos; Foyer De l’enfance  SOSVillages, Abidjan; and KenyaRed Cross Tana Delta recon-

AllIED World AssuranceCompany Holdings, AG

(AWH) today reported a netloss of $41.1 million, or $1.17per diluted share, for thefourth quarter of 2012 com-pared to net income of $183.1million, or $4.63 per dilutedshare, for the fourth quarterof 2011.  Net income for theyear ended December 31,2012 was $493.0 million, or$13.30 per diluted share,compared to net income of$274.5 million, or $6.92 perdiluted share, for the yearended December 31, 2011.

The company reported anoperating loss of $55.4 mil-lion, or $1.58 per dilutedshare, for the fourth quarterof 2012 compared to operat-ing income of $94.7 million,or $2.40 per diluted share,for the fourth quarter of2011.  Operating income forthe year ended December 31,2012 was $202.7 million, or$5.47 per diluted share, com-pared to operating incomeof $183.7 million, or $4.63 perdiluted share, for the yearended December 31, 2011.

President and Chief

Executive Officer ScottCarmilani commented,“Allied World had a strongyear in 2012. WhileSuperstorm Sandy tem-pered our fourth quarterunderwriting results, westill generated $493 millionof net income for the fullyear, continuing to buildvalue for our shareholders.Our diluted book value pershare grew by over 15% in2012, to $92.59.  The compa-ny’s top line productiongrew by 20% to $2.3 billion ingross premiums written forthe year, and we were able toachieve targeted growth inall three of our business seg-ments.”

Carmilani added, “Ourcompany continues to capi-talize on our various bookvalue drivers including ourexpanded breadth anddiversity of underwritingplatforms, strong invest-ment acumen, responsible

reserving and capital man-agement flexibility.  I believethese strengths have AlliedWorld well positioned as wemove into 2013 and beyond.”

Gross premiums writtenwere $497.1 million in thefourth quarter of 2012, a19.3% increase compared to$416.5 million in the fourthquarter of 2011.  For the yearended December 31, 2012,gross premiums writtentotaled $2,329.3 million, a20.1% increase compared to$1,939.5 million for the yearended December 31, 2011.Net premiums written were$362.6 million in the fourthquarter of 2012, an 18.2%increase compared to $306.8million in the fourth quar-ter of 2011.  For the yearended December 31, 2012,net premiums writtentotaled $1,837.8 million, a19.8% increase compared to$1,533.8 million for the yearended December 31, 2011.   

Allied World reportsstrong full year results

THE GUARDIAN, Monday, February 18, 201324

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THE GUARDIAN, Monday, February 18, 201326

THE GUARDIAN, Monday, February 18, 2013 27

THE GUARDIAN, Monday, February 18, 201328

THE GUARDIAN, Monday, February 18, 2013

StockwatchIn association with Lead Capital

29

MAJOR equity markets aroundthe globe moved upwards as

their various indexes gained mar-ginal points. In our universe of sam-ple equity markets; the S & P 500and NASDAQ gained points by 0.54%and 0.90% respectively, while theDow Jones lost points by 0.03% at theend of last week. In Europe, The FTSE100, German Dax and France CAC 40all gained points by 1.01%, 1.72% and1.53% respectively. In the Asia/Pacificregion, Hangseng gained points by1.02%, while the BSE Sensex andNikkei 225 lost points by 0.42% and0.44% respectively. In Brazil, theBovespa lost points by 0.93% whileRussia’s RTS INDEX gained points by0.60%. On the local setting, NSE ASIclosed at 33,342.02 recording 0.37%

IN this week, the totalvolume appreciated by29.85% and value tradeddepreciated by 12.51%. Aturnover of 4.35 billionunits of shares valued atN21.82 billion was record-ed, in contrast to aturnover of 3.35 billionunits of shares worthN24.94 billion that wasrecorded in the previousweek.Volume this week wasdriven by activities in theshares of UNITYBNK,TRANSCORP, SOV-ERENINS, INTENEGINS,LASACO, UBCAP, ACCESS,UBA, WEMABANK and

DURING the period under review, fifty five (55)stocks recorded price appreciation comparedto sixty six (66) stocks that recorded price appre-ciation in the previous week, ROYALEX was firston the top gainers chart to close with 56.47%, fol-lowed by WEMABANK with 26.87%, RTBRISCOEwith 24.74%, JAPAULOIL with 24.36%, CORNERSTwith 23.21% and UNITYBNK with 22.09%. Othergainers in the top ten categories were DNMEYERwith 19.85%, EVANSMED with 19.64%, WAPIC with19.47% and NEIMETH with 19.42%.On the flip side, thirty three (33) stocks depreciat-ed in price last week compared to eighteen (18)that depreciated a week ago. FO led on the pricelosers’ table with 14.42%, followed by JOHNHOLTby 13.57%, ABCTRANS by 10.45%, LIVESTOCK by8.94%, REDSTAREX by 8.01%, HONYFLOUR by 7.27%,IKEJAHOTEL by 6.48%, SKYEBANK by 5.86%,

ANNOUNCEMENT

Stock Market Report for the week Friday, 8th February to Thursday 14th February, 2013

THE GUARDIAN, Monday, February 18, 201330 STOCKWATCH

COMPANY’S RESULT CONTINUE ON PAGE 51

Lead Capital Stock Valuation

THE GUARDIAN, Monday, October 22, 2012 31

An artistic impression of Eko Atlantic City...one of the projects making waves in Nigeria

Estate surveyors write Presidency on mapping, valuation of flood damaged assets

CONCERNED that theF e d e r a l

government  may be chas-ing shadows in its quest toameliorate the natural dis-aster that ravaged somestates recently, professionalestate surveyors are can-vassing for fresh steps,which would take cog-nizance of  accurate assess-ments of the issues anddamage to properties.

Coming under the aegis ofNigerian Institution ofEstate Surveyors and

Valuers (NIESV), the profes-sional body saddled withthe responsibility for landmanagement is urgentlyseeking collaboration

Homes & Property

The long term growth outlook for Africa appears bright, with large andrapidly emerging economies of Sub-Saharan Africa and, in particular,fast-growing cities such as Lagos, Luanda and Nairobi likely to beincreasingly the hotspots for investors in the real estate market.

Professional Practice

NIESV members are clamouring for a role in the government’s Presidential Committee onflood relief and rehabilitation; enumerating ways to cushion the effects of flood disasters onthe affected individuals and communities, especially as it pertains, compensation and valua-tions of flood damaged areas

ANEW report released lastweek says that demand

for high quality commercialand residential propertycontinues to grow acrossAfrica on the back of the con-tinent’s sustained strongeconomic growth and risingw e a l t h .

Africa is in the midst of aperiod of dynamic econom-ic expansion, having aver-aged GDP growth of morethan 5 per cent per annumover the last decade. Thisstrong growth is expected tocontinue and is creatingwealthier populations, par-ticularly in the largest andmost rapidly growing urbanc e n t r e s .According to Knight Frank’s

Africa Report 2013, Africa’s“mega-cities” such as Lagos,Nairobi, Accra, Lusaka andDar es Salaam are increas-ingly becoming the driversof its economic growth and,as a result, are attractinggrowing interest from occu-piers, developers andi n v e s t o r s .

In the retail sector, theincreasing wealth andsophistication of Africanconsumers is leading to ris-ing demand for modernretail formats and western-style shopping centres.

Countries such as Zambia,Ghana, Kenya and Nigeriahave seen a wave of retailconstruction activity inrecent years, which hasdelivered the first genera-tion of modern shoppingmalls to many major cities.

The construction of fur-ther, and larger, shoppingcentres can be expected, asdevelopers seek to meet thedemand for high qualityretail space from increasednumbers of internationalretailers entering Sub-

between the government,the Presidential flood com-mittee, the communities,international agencies andrelevant professional bod-ies to draw up a compre-hensive action plan for themanagement of the conse-quences of the flood disas-ter in the country.

In an eight-page memo-randum signed by NIESVPresident, Mr. Emeka Eleh,and National Secretary, Mr.Kunle Awolaja presented tothe Presidential Committee

CONTINUED ON PAGE 38

CONTINUED ON PAGE 47

Stories by Chinedum Uwaegbulam,Assistant Housing & EnvironmentEditor

Saharan markets and majorSouth African chains pursu-ing expansion plans else-where in the continent.

In the office sector, manykey African cities have

Nigeria, other African property markets poisedfor strong growthReal Estate

severe shortages of highquality space built to thespecifications expected byinternational companies.

This scarcity of supply hasled to extremely high rents

in some cities, particularlywhere there is strongdemand for office spacefrom international occu-piers from the oil and gass e c t o r .

Indeed, prime office rentsin Luanda and Lagos areamongst the highest in theworld. In Luanda, recentconstruction completionshave eased some of the pres-sure on the market andrents have become moreaffordable over the lasttwelve months but, even so,at U$150 per square metreper month, prime rentsremain well above the levels

seen in leading global officemarkets such as London,New York and Hong Kong.

Oil companies and thebanking sector are estab-lished sources of demandfor office space in Africa, butit is also noteworthy thatAfrican economies are diver-sifying and non-traditionalsectors are emerging.

Supreme Courtresolves intra-family battle over Lagos Island

Lagos, develop-er planBadagry’sHannah Garden

DisplacedBakassi indi-genes’ houses getApril completion

Page 47Page 33 Page 37

Goodluck Jonathan Emeka ElehAliko Dangote Olisa Agbakoba

THE GUARDIAN, Monday, February, 2013HOMES & PROPERTY32

FCTA raisespanel on Apo resettlement scheme

SET to resolve the Apo reset-tlement stalemate, the

Federal Capital TerritoryAdministration (FCTA) hasconstituted a committee sad-dled with the responsibilityto implement the ApoResettlement Scheme, partic-ularly the report of theMinisterial Committee onFacts Finding and the WayForward on the Scheme.Specifically, the FCTA had on

August 2, 2012 inauguratedthe Ministerial Committee toresolve the lingering ApoResettlement Dilemma.

Consequently, theCommittee submitted itsreport and recommenda-tions to the Administration

on December 13, 2012.The Minister of State for FCT,

Olajumoke Akinjide, whoinaugurated theImplementation Committeeon Apo Resettlement Scheme,said the Administration haddecided to immediately com-mence the process of imple-mentation having painstak-ingly studied the report of theFacts Finding Committee.The Minister advised mem-bers of the ImplementationCommittee on ApoResettlement Scheme to usetheir wealth of experience inachieving an acceptable andreliable implementation of

Urban Development

Professional Practice

From Terhemba Daka, Abuja

From Charles Ogugbuaja, Owerri

The newly established committee came as an intervention towards resolvingthe challenges hovering around Apo resettlement scheme, which has beenengender some sort of controversy

the scheme.“In implementing the reset-tlement of the Garki people,careful and innovative strate-gy must be employed in sucha manner that respects thedignity of the GarkiCommunity,” she added.

The ImplementationCommittee on ApoResettlement Scheme ischaired by the Director ofAdmin and Finance, AreaCouncil Services Secretariat,Alhaji Yusuf Tsaiyabu whilethe Special Assistant to theMinister of State onResettlement, Mr. BenedictOgenyi, acts as the secretary.

THE Nigerian Institutionof Estate Surveyors and

Valuers (NIESV) has com-menced tertiary school-based professional capacitytraining called MandatoryContinuing ProfessionalDevelopment (MCPD), for itswould-be members.

Declaring the event openat the Federal Polytechnic,Nekede, Owerri, Imo State,NIESV President, Mr. EmekaEleh, represented by theChairman, Abia State chap-ter of the institution,Romanus Osebo, noted thatthe decision was healthy for

the profession and thenation, adding that everystudent undertaking thecourse at any tertiary insti-tution was qualified to reg-ister with the body to carryout the programme side–by- side with fully regis-tered professionals in thefield.He said: “The year has blos-

somed beautifully as we aregathered today for the firstschool based MandatoryContinuing ProfessionalD e v e l o p m e n tSeminar/Workshop. As aprofession, we are interest-ed in grooming the youngones who we are all awareare the greater tomorrow

and future leaders of ourgreat country Nigeria. Weare equally interested inintegrating our studentsinto membership at the ear-liest stages.

Eleh commended theRector of the institution, Dr.Celestina Njoku for her sup-port to the association,stressing the need for the up–date in the profession. Headded that eminentresource persons werebrought in to deliver the lat-est technological innova-tions in the field.

Speaking, the Rector saidthere was need for womento show much interest inareas such as informatics,

engineering, among othersrather than men dominat-ing the fields.

Also speaking, the ImoState Chairman of the body,Hogan Achigbu, said thechapter was grateful withthe parent body for thechoice of the programme,stressing that the body hadbeen working with theRegistration board of theinstitution to enhance stan-dardsOthers who delivered lec-

tures included a Councilmember and formerSecretary of the institution,Mr. Rowland Abonta, PatOnukwuli, Azubuike Olaitanamong others.

Members are: Director ofUrban & Regional Planning,Alhaji Suleiman Abubakar(vice-chairman); Chairman ofAbuja Municipal AreaCouncil, Hon. Micah Jiba;Director of Security in FCT,Alhaji Bashir Mohammed;Director of Inspectorate,Planning and Management,Area Council ServicesSecretariat, Architect J.S.Kaura; Director of SatelliteTowns Development Agency,Alhaji Tukur Ibrahim Bakori;Director of DevelopmentControl, Mr. Yahaya Yusuf,and Director of Resettlement& Compensation, Mr. Francis

Okechukwu.Others include: Director ofLands in FCT, Alhaji MainasaraBabayo; Special Adviser(Lands) to the PermanentSecretary, Chief StevenAwoniyi; Special Assistant(Lands) to the Minister of FCT,Alhaji Hussaini Badeggi;Special Assistant (Legal) to theMinister of State for FCT, Mr.Festus Tsavsar; representativeof Public Building, Mr.Momoh Jimoh Ibrahim; rep-resentative of Department ofState Service, Mr. AdebowaleSanusi; Deputy Director ofMonitoring & Control,Resettlement Department,Alhaji Baba Kura Umar, andChairman of FCT Press Corps,Mr. Sam Ogbeifun.The minister also disclosedthat two representatives eachfrom His Royal Highness of Sa-Peyi Council and Garki YouthAssociation were alsoappointed to be part of theCommittee.Earlier, the Secretary of theCommittee, Mr. BenedictOgenyi, stated that theCommittee was establishedto implement the recommen-dations contained in theReport of the MinisterialCommittee on Facts Findingand the Way Forward on ApoResettlement Scheme.He listed the other terms ofreference of the committeeas:* to liaise with the Urban andRegional PlanningDepartment and ensure thatthe final design of GarkiVillage is prepared for imple-mentation in order to deter-mine the exact number ofhouses to be left within theintegrated area;* to consider complaints oromissions on allocations and

other related issues thatmight have been outstand-ing;* to effect immediate move-ment of the three communi-ties (Garki, Apo andAkpajenya) to the ApoResettlement site; and* any other matter that willassist the Administration inthe implementation of theResettlement Scheme.The Chairman of theImplementation Committeethanked the minister for hercommitment in resolving theApo Resettlement problemand assured her of the dedica-tion of members to deliver ofthe assignment.“We shall use our wealth ofexperience to accomplish thetask before us. We are com-mitted towards delivering onthe terms of reference,” hesaid.The original inhabitants ofGarki in the FCT, it will berecalled, had on January 20,2013, demanded the fullimplementation of the reportof the Ministerial Committeeon Apo Resettlement Schemeheaded by the SolicitorGeneral of the FCT, Mrs. HelenOloja. The Garki indigenes, whospoke through the Presidentof Garki Youth Association(GYA), Joel Yazegbe, urged theFCT Administration to ensurethat the full report was pub-lished and implementedimmediately.“We commend the FCTAdministration for setting upthe Ministerial Committee onApo Resettlement Scheme.This is the best attempt madeby the FCT Administration toonce and for all resolve theproblem, which has lingeredfor four years.

NIESV introduces mandatory professionaltraining in tertiary schools

33

CONTINUED ON PAGE 37

Lagos, developer plan Badagry’s Hannah Garden

PLANS to commence con-struction works on the

proposed Hannah’sGarden, a 260 housingunits estate, are on the topgear, as the developer lastweek revealed that theproject would kick-start bythe end of March 2013.The Hannah’s Garden

Estate is planned forGanyingbo area ofBadagry, Lagos State. The proposed mass hous-

ing project, to be executedby Messrs Xpress PropertyServices Ventures Limited(XPSVL), in collaborationwith the Lagos StateMinistry of Housing undera Private PublicPartnership (PPP) initia-tive, is to produce 260“affordable housing units’for the populace.The project, which its

Memorandum ofUnderstanding (MoU), wassigned by the two partieslast year is expected tocomplete between 12-24months. Hannah’s Gardenwill come in 2 and 3 bed-rooms, consisting of 18blocks of flats sitting onover five hectares of landopposite the Badagry

Beach in Ganyingbo,Badagry, Lagos state. Eachof the unit has a price tagof between N9 million andN10 million respectively.Speaking on the private

sector driven project,Managing Director of thefirm, Mr. Segun Alli, said,“It takes the land resourcesof Lagos State and mixes itwith the expertise of quali-fied property developerswith local financial capa-bilities to achieve afford-able mass housing.”The project, when com-

pleted, is to be equippedwith modern facilities andamenities such designatedplay area for children,sport and medical centers,intercom and internetfacilities, while the gardenwould be provided withfence and gates at thestrategic locations toensure a well secured envi-ronment.Besides, the estate would

be provided with powerand water supply, includ-ing tarred road networks.He said, “The desire topartner with a focused andpurposeful governmentlike that of Lagos Stateendeared me to getinvolved in this laudableeffort to make available

By Tunde Alao

The proposed Hannah Garden, Lagos

Prime Estates Projects

THE GUARDIAN, Monday, February 18, 2013

THE GUARDIAN, Monday, February 18, 201334 HOMES&PROPERTY

Housing

Propertygate jerks housing stock with N700mAlexandria Quarters

which is set for completionby May this year, is locatedin a serene part of San-gotedo, Lekki PeninsulaLagos, and is covered by aregistered title and natu-rally drained soil.According to him addi-tional amenities in the es-tate include dedicated substation, underground ca-bling, street lights, pavedroads and drains, miniwater works, extensivelandscape, recreation cen-tre, grocery store, securitywith CCTV cameras andmanaged quarters.Ajayi also added that the

firm is targeting projectsthat would cater for themiddle class earners evenas it put in place flexiblepayment option and salecredits to would-be home-owners.The Propertygate bosswhile adding that the chal-lenges of development areenormous stressed that allot still needs to be done ineasing land processing.“The vision of Property-gate is to become a globalreal estate developmentcompany, distinctive for su-perior value delivery to itscustomers, investors andemployees. We have deliv-ered some functional de-tached houses at CrownEstate, Lekki Peninsula,

By Tosin Fodeke

Spurred by the growing reputation of the Lekki area being one of thenations’ prime real estate corridors, an indigenous property devel-oper, has unveiled 31-unit private residential estate along that axis,to increase the nation’s housing stock.

RENEWED efforts at reviv-ing the housing dreams

of the popular Lagos resi-dential haven-Lekki penin-sular axis- looks to havebegun yielding fruit, as anindigenous property devel-oper, Propertygate Develop-ment and Investment Plc,has unveiled a private resi-dential estate along theaxis, which will assist in re-ducing the housing gap.The residential quarters,dubbed Alexandria Quar-ters by its promoters, is afully gated residential quar-ter comprising 31 eleganthomes made up varioushousing types. They in-clude; 10 terraced houses, 18apartments, six semi de-tached houses and a com-mercial block. The estatehas a close proximity withLagos Business School, FaraPark, Crown estate, GoldenPark among others.The house units come in

four major types- first the,elegant four bedroom semidetached houses with twoliving rooms and all en-suite bedrooms, classy fourbedroom terrace housewith two living rooms andall en-suite bedrooms,three bedroom apartmentswith inbuilt boys quartersand the commercial blockof houses with a grocerystore, gym and estate office.Chief Executive Officer of

the firm, Mr. AdetokunboAjayi explained to TheGuardian that the estate,

Lagos in continuation ofour stride in provision ofhomes for comfort and ele-gance. It delights us toknow that the people andthe community appreciateour projects as we haveachieved this feat based onthe commitment to serveour clients better.”With pricing for the hous-ing ranging from N31 mil-lion to N37 million, Ajayinoted that some apart-ment types will be offeredfor outright sale while oth-ers will be on rental basis.He added: “Real estate in-vestments in Nigeria hasovertime been described aspossessing good economicrisk-hedging characteris-tics and providing an ag-gregate turn overperformance than most al-ternative investments. Ini-tial perception paraded bycertain players in the prop-erty market in Nigeria, es-pecially in major cities wasthat property prices anddemand for propertieswould always be on the in-crease. However, the recenteconomic crunch hasproven otherwise exposinga lot of uninformed deci-sions which were weighedand found wanting.“It is, therefore, a non-de-

batable fact that whilehousing deficit is on the

geometric increase; thiscannot be a singular justifi-cation for committing bor-rowed funds, surplusprofit, hard-earned savingsinto property developmentand investments. Cautionhas to be taken in order notto be enlisted among thosewho got their fingersburnt. So many investors haveentered into pre-salearrangements, which neversaw the light of day whilesome developments werealready functionally andeconomically obsolete be-fore getting into the mar-ket.“Considering the huge

amount that is committedinto real estate investmentsand the level of risks associ-ated therewith, the needfor an appreciable level ofcertainty cannot be over-emphasised. This meansyou should never gamblewith your investment. Tobe a good investor, nevertie emotions to your invest-ments. The two are mutu-ally exclusive. Premisingyour investment decisionson seminars that are toogood to be true, engagingnon professionals or pro-fessionals who lack in-tegrity and necessaryexpertise are few examplesof ways investors gamblewith their money.”

Alexandria Quarters, Lekki, Lagos recently

THE GUARDIAN, Monday, February 18, 2013 35HOMES&PROPERTY

Professionals task govts on skill development for artisans Professional Practice

APPALLED by the dearthof technicians and arti-

sans in the constructionindustry, stakeholders inthe building sector of theeconomy have called onFederal, State and LocalGovernment authorities tourgently rise to tackle thedownward trend of thisgroup of people.

The professionals spokein Lagos last week duringthe Lagos State Technicaland Vocational Board(LASTVER) event, held inconjunction with MessrsMCS Consulting and aimedat campaigning for thedevelopment of skill acqui-sition programmes forNigerian youths, includingthose who are about to fin-ish secondary education,those already in technicalcolleges and other relatedinstitutions.

Sponsored by NigeriteNigeria Limited, the mainobjectives include; tostrategically intervene andrevive technical and voca-tional education byupgrading the quality,course content and infra-structure available tolearners, thereby attract-ing and raising a newbreed of workforce andcorrecting the poor publicperception of technicalskills acquisition.

It is also to supportregional and nationaldevelopment targets byproviding a huge pool ofwell trained and compe-tent workers for the labourmarket, stimulating entre-preneurship and wealthcreation, thereby, reducingunemployment and todirectly impact over thenext 10 years almost everysector of the economy longterm beginning from con-struction/housing sectors,power, oil and gas, amongothers.

With a theme: “Skill Up,An Industrial-BackedTechnical SkillsC o m p e t e n c yDevelopment,” MessrsAfolabi Imoukhuede, ofMCS Consulting, notedthat City and Guilds’ quali-fications have beendesigned to provide broadexposure to essential prac-tical work skills, thus, thiscertification enhances theefficiency and flexibility ofthe labour market; reducesskills bottleneck and easesworker’s absorption intothe economy; youth unem-ployment is drasticallyreduced “as work-readygraduates are immediatelyplaced in employment.”Besides, he noted that it

facilitates youth transfor-mation “as a result of there-training on employabili-ty, attitudinal, leadershipand entrepreneurshipskills.Lamenting, the National

President, NigerianInstitute of Builders(NIOB), Mr. Chuks Omeife,noted that the scarcity ofqualified personnel in thetechnical spheres of thenation’s development hasreached an alarming situa-tion.

According to Omeife,there is the need for thefederal government to for-mulate policy interventionand the necessary regulato-ry framework, capable ofaddressing the issue oftechnical education and its

sustainability.“Apart from putting

together the needed frame-work, sincerity and trans-parency by the governmentare required. This wouldallow private sector to part-ner with government in thedevelopmental pro-grammes for our highlyneeded technicians,” hesaid, adding that trainingof artisans should not betaken lightly.

Mr. Jimoh AremuOlutokun, from YabaCollege of technology,while admitting the impor-tance of training andretraining of Nigerianyouths in technical areas,noted that there was needfor the upgrading of theexisting technical colleges.Expressing his affection forthe initiative, Olutokuncondemned what hedescribed as “partial imple-mentation of 6-3-3-4 educa-tional system that, abinitio,designed to promote tech-nical education,” especiallyfor those who may havenatural talents and inclina-tion to take into vocationalstudies, apart from the con-ventional educational pur-suit.“It is a policy failure thatgovernments and schooladministrators refused toguide students that didn’tshow prospect in the con-ventional education to stopafter their JuniorSecondary School (JSS3), topursue vocation that suitsthem, but rather, they usu-ally proceed to SS3. This isin contrary to the spirit ofattaining technologicaldevelopment”.

President, Nigerian Institute of Quantity Surveyors (NIQS)  Mr Agele Alufoha(centre)i, Executive Director, Nigerite Limited, Mr. Toyin Gbede (left), Lagos StateCommissioner for Commerce and Industry, Mrs. Sola Oworu, and National President, Nigerian Institute of Building, Mr. Chucks Omeife at the unveiling of Skillup byLagos State Technical and Vocational Education Board (LASTVEB) and MCS Consulting Limited in Lagos, recently.  

The President, NigerianInstitution of QuantitySurveyors (NIQS), Mr. AgeleAlufohai, argued that eco-nomic dynamics of coun-tries such as China,Malaysia, India and Chile isbuilt on thousands of high-ly efficient small-scaleindustries that employmostly people with techni-cal and vocational skillsrather than graduates. Headded that: “The economysaves time and money.There is tremendous gainin producing, especially,when you have people whocan repair your cars, fixyour domestic apparatus,construct your homes,makes your furniture andother things professionally.In addition, when oil andgas firms have City andGuilds’ certified underwa-ter welders. All these saveNigeria’s foreignexchange”.

He charged governmentto compel big organisa-tions in the industry to set

up training schools as partof their corporate responsi-bilities, that they shouldemulate Nigerite.

The Marketing Director,Nigerite Nigeria Limited,Mr. Toyin Gbede, was of theview that it is high timethat development andretraining of technicianstake a centre stage inNigeria.“As part of our corporate

responsibilities, we hadselected some schoolswhere capacity develop-

ment is on-going. Theseinclude GovernmentCollege, Ikorodu, Universityof Lagos and Yaba College ofTechnology, where theArchitecture Departments’studios were refurbished.

Other schools that aremarked down for such ini-tiatives include theObafemi AwolowoUniversity, Ile-Ife, OsunState, Moshood AbiolaPolytechnic (MAUPOLY)Abeokuta, Ogun State andLagos State Polytechnic

(LASPOTEC).Earlier in her remark, the

Lagos State Commissionerfor Commerce andIndustry, Mrs. Sola Oworu,said Lagos is committed tothe development of voca-tional and technical educa-tion. “We are committed tothe development of techni-cal and vocational educa-tion in Lagos. We havemore than 300 registeredartisans in Lagos, and gov-ernment is given them thenecessary support”.

By Tunde Alao

The gathering believedthat there is the needfor the federal govern-ment to bring aboutpolicy intervention andthe necessary regula-tory framework, capa-ble of addressing thedeclines of techniciansand artisans in the con-struction industry

THE GUARDIAN, Monday, February 18, 201336 HOMES&PROPERTY

Roads Parts of the agency’splan in 2013, includethe possible rehabilita-tion of 1000 roads, fix-ing 100 manhole coversand 250 gratings andto construct drains inabout 17 locations innine local governmentsand local council devel-opment areas (LCDAs).

FERMA, LSPWCpartner on roadmaintenance

as regards federal roads.According to him, “unlikein the past when we werefaced with unfriendly fed-eral government’s agency,the present leadership ofFERMA shared the same vi-sion with us on how tomake Lagos roads potholefree, hence, the usefulnessof the collaboration.He further revealed that in2013, the agency has set foritself the target of workingon 1000 roads, to fix 100manhole covers and 250gratings and to constructdrains in about 17 locationin nine local governmentsand local council develop-ment areas (LCDAs).And to get this done, the

new asphalt plants in Imotaand Badagry are under way.The Imota plant that wouldbe installed in April, whencompleted, would have theproduce 120 tonnes per

hour, while the one in Bada-gry that is expected to be in-stalled before the end of 2ndquarter of 2013.

The Badagry plant is tocater for about 400 roads, inAmuwo Odofin, Ajeromi-Ifelodun, Ojo, Egna-Igandq,Badagry Township and partof Alimosho axis.Added to the asphalt plantare the procurement of threewheel loaders, two Tele- han-dler (fork lift), three pothole’spatch equipment, rollers, re-versible vibratory plate com-pactor tractors/bucket andone bulldozer.

Besides, Akintola hinted thatthe agency is to double itsnight operations capacity in2013. “With the delivery ofadditional five units offloodlight equipment, wewould double our night ac-tivities in 2013. This is a re-sult of our quest to workmore at night, given our sen-sitivity to the difficulty roadusers go through whenevermaintenance work is beingcarried out, especially, onvery busy roads”, said Akin-tola, adding that the adop-tion of outsourcecontractors is still main-

tained. The set of contractorshave been complimentingthe activities of the in-housemaintenance gangs, the ap-proach he said enabled theagency to reach many sub-urban communities.Other strategies include theexpansion of in-house gangsand what he called “contin-ued staff motivation”.The LSPWC boss, howeverlamented the issue of van-dalisation of manholes andgratings on the road. Thevandals have been constitut-ing nuisance to the activitiesof the agency in the recent

time, thus, forcing it to re-place the cast iron materialto recycle plastic materialmade out of composite resinfibre.“This initiative has actuallyworking well, since its intro-duction, because of its zeromarket value. This is unlikethe previous ones that couldbe converted to other use”.

The corporation’s helms-man, said 190 roads havebeen rehabilitated since thebeginning of 2013, addingthat Lagos would witness im-proved activities before theend of 2013.

By Tunde Alao

UNLIKE the past, signs ofbetter roads are ahead

are emerging as the LagosState Government and theFederal Road MaintenanceAgency (FERMA) are set tobreak a new frontier as theduo have agreed to work to-gether towards ensuringroad infrastructure in thestate is boosted.At least, the state govern-

ment through it PublicWorks Corporation (LSPWC)will now be aiding FERMA’sjob by selling asphalt to theFederal Government’sagency on discounted rate,courtesy of a directive byGovernor Babtunde Fashola.The gesture, The Guardianlearnt, it is to enable FERMAto respond effectively toroad maintenance needs, es-pecially, on the federal roadsin the state.As part if its plan, LSPWC,

currently proposes estab-lishment of asphalt plants inBadagry and Imota, ostensi-bly to further ease its task onroad maintenance. Speaking on the 2013 projectactivities of his organizationlast week, the ExecutiveChairman, LSPWC, Mr.Gbenga Akintola, noted thatif the synergy betweenLSPWC and FERMA contin-ues, it would be one majorway of bringing relief toLagos residents, especially,

Men of the LSPWC patching some bad portions of a road, recently

CONTINUED FROM PAGE 33

From Nkechi Onyedika, Calabar

HOMES&PROPERTY 37

Lagos, devel-oper planBadagry’sHannahGarden

Housing

THE GUARDIAN, Monday, February 18, 2013

the much needed masshousing to our people”,adding that this has alsocreated a platform toenable him deliver on hisexpertise and to be part ofthis much awaited hous-ing reform.

The Commissioner forHousing in Lagos, Mr.Bosun Jeje, while express-ing government’s satisfac-tion on the response of pri-vate investors to its hous-ing policy, noted that gen-uine developers have noth-ing to fear “as governmentwould do everything possi-ble to assist them realizetheir goals. “We share a vision of provi-sion of affordable housingto the teeming Lagos resi-dents. As such, every gen-uine investors and devel-opers should count on oursupport, that with sinceri-ty of purpose and trans-parency, this goal wouldbe collectively achieved.”

Displaced Bakassiindigenes’ houses getApril completion date

IN a renewed effort toprovide residential

accommodation for theBakassi community, theMinistry of Niger DeltaAffairs has set April 2013date for the completion of40 units in the Ikpiri-Ikamg Housing Estate.

The estate is being han-dled by 20 contractors,and each contractor isbeing paid N19million forthe construction of oneunit of two bedroom andone unit of three bedroomflat.

A Deputy Director in theministry, Mr. WilliamsAganga who spoke to theNational GoodGovernance Tour team,disclosed that the 40 hous-ing units are explainedthat the high cost of theproject was due to theswampy nature of the site,which required sand fill-ing,  and the scarcity ofbuilding materials in thearea, adding that the ideawas not to give the job toone contractor.

He  noted that the con-struction of the housesstarted in 2010 but wasdelayed due to scarcity offunds. “ The internal roadsare being constructed andthere will be independentwater supply for theestate. The estate will besecured since it wasdesigned for displacedpeople of Bakassi,” he said.

On how the ministryintends to allocate thehouses, Aganga said, “ Weare consulting with thestate and local govern-ment to find out themodalities for allocationof the houses.”

Also speaking, theChairman of Bakassi Local

Government, Mr. EkpoEkpo Bassey said that a sitehas been identified forBakkasi New TownDevelopment adding thatthe Local Government hasspent N30million on theconstruction of accessroad to the site with thehope that the Ministry ofNiger Delta Affairs wouldcommence the develop-ment of the site but tillnow, nothing has beend o n e .

He noted that 40 housingunit is grossly inadequateto cater for the huge num-ber of Bakassi people andcalled on the FederalGovernment to includethe development of theBakassi New Town in the2013 budget. Some of the housing units at the Ikpiri-Ikamg Housing Estate.

38 HOMES&PROPERTY THE GUARDIAN, Monday, February 18, 2013

CONTINUED FROM PAGE 31

Estate surveyors write Presidency on valuation of flood damaged assets

on flood relief and rehabili-tation, the estate surveyorsare seeking the following:ONE: Valuation and

Assessment of Damages:Estate surveyors expressedthe need for all tiers of gov-ernments to carryoutinventory, assessment andvaluation of all assets dam-aged by the flood. TWO: Assessment ofPossible Compensation forthe Affected Communities.They said that Section 17(3)g of the NigerianConstitution provides thatthe State should direct itspolicy towards ensuringthat provision is made forpublic assistance in deserv-ing cases or other condi-tions of need.“The government has

responsibility to compen-sate to a reasonable extent,damages/losses suffered byindividual citizens in theaffected communities. Theassessment of compensa-tion payable to the floodvictims are to be carriedout by members of our pro-fession who are the onlyexperts recognized by lawfor compensation assess-ment in Nigeria.” THREE: EnvironmentalImpact Assessment. NIESVsaid: “Our professionalbody in collaboration withother relevant professionalbodies, are to carryout EIAin all the communitiesafter the flood has recededto determine the impact ofthe flood on the environ-ment and the suitability ofthe areas for human activi-ties and livability.”

FOUR: Resettlement- Theinstitution called for per-manent resettlement cen-tres for the flood victims inthe affected states. They argued that the pres-ent temporary camps arenot suitable for human set-tlement and pose greathealth challenges to theflood victims who arecrammed in very small-restricted spaces. “Againthe pilot survey on theaccommodation and facili-ties requirements of theflood victims in the would-be resettlement centersneed to be established byour professional bodyurgently for prompt actionby the relevant authoritiesto alleviate the sufferings ofthe victims.”

In the documentaddressed to the commit-tees’ Chairman, Alhaji AlikoDangote and Mr. OlisaAgbakoba, the surveyorsare also seeking member-ship of the committee. “Theconstitution of the FederalGovernment high poweredcommittee on the FloodDisaster was a step in theright direction but themembership of the com-mittee should have includ-ed at least a member of themost relevant professionalbody on land matters,assessment of damages andenvironmental impactassessment which is TheNigerian Institution ofEstate Surveyors andValuers.“We recommend that a

senior member of our pro-fessional body, to be nomi-nated by the profession beco-opted into the presiden-

tial committee to guide itswork.” According to the institu-

tion, T the governmentshould as a matter of prior-ity commission a surveyand mapping of the coun-try for Natural DisasterManagement in view of thefact that earlier warningshave been recorded onearth tremors in someparts of the country vis-à-vis mining/explorationactivities all over thenation. “This will give thenation the opportunity ofplanning for preventionand reduction of futureoccurrences.”They further recommend-ed that all occupiers offlood plains and areas veryclose to the costal parts(waterfront) should be relo-cated and such structuresdemolished to avoid theimminent dangers in suchareas. “There should betotal prohibition of anyform of development at theflood planes in the coun-try.”NIESV also advised that

the requirement of provi-sion of standard drainagesand channelization of natu-ral water flow should be theminimum requirement forevery developmentapproval in every part ofthe country.

The document recom-mended the establishmentof a monitoring andenforcement agency on theenvironment for the pre-vention and reduction ofnatural disasters as well asthe review of NigerianEnvironmental laws withstiffer penalties for default-

THE GUARDIAN, Monday, February 18, 2013 39

THE GUARDIAN, Monday, February 18, 201340

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THE GUARDIAN, Monday, February 18, 201342

THE GUARDIAN, Monday, February 18, 2013 43HOMES&PROPERTY

UN HABITAT calls for global Urban Youth Fundapplications

MORE facts have emergedon the United Nations

Human SettlementsProgramme (UN-Habitat)call for applications inrespect of the OpportunitiesFund for Urban Youth-LedDevelopment, also known asthe Urban Youth Fund. The facility, which is in itsfifth year, was launched inNovember 2008 at thefourth session of the WorldUrban Youth Forum inNanjing, China. It providesgrants to projects led byyoung people aged 15-32years who are piloting inno-vative approaches toemployment, good urbangovernance, shelter andsecure tenure. Under thescheme, small developmentinitiatives are eligible forgrants of up to $25,000.These grants aim at promot-ing youth empowerment asthe solution for betterurban governance. Of the one billion slum

dwellers in the world today,it is estimated that morethan 70 per cent are underthe age of 30. Studies showthat though there are manyyouth-led initiatives inslums and squatter settle-ments around the worldthat require support in theirefforts to transform theircommunities, these youngpeople have few resourcesavailable to improve theirown living.Besides, globally, 85 per-

cent of the world’s youngpeople live in developingcountries. An increasingnumber of these young peo-ple are growing up in cities.In many cities on the Africancontinent, more than 70 percent of inhabitants areunder the age of 30. Youngpeople, especially girls andwomen, are also consideredthe most vulnerable tosocial problems caused byunemployment and pover-ty.

The UN-Habitat’s Urban

Youth Fund is conceivedwith the understanding thatthe youth are drivers forchange and it embraces thebelief that youth are a solu-tion for sustainable urbandevelopment. Applications for the grants,which opened at the week-end, will be received tillMonday April 15th 2013. TheFund is open to young peo-ple based in cities or townsfrom the developing worldtraditionally classifiedunder three regions, namelythe Africa Region, Asia andthe Pacific, as well as LatinAmerica and the CaribbeanRegions. Further details areavailable at the official site:www.unhabitat.org/youth-fund.Essentially, the aims of the

Urban Youth Fund are, to:� mobilise young people forbetter youth-related policyformulation.� help governments, non-governmental, civil societyand private-sector organiza-tions better understand andrespond to youth concerns.� support youth informationnetworks;� pilot and demonstrate newideas on employment, gov-ernance, adequate shelterand secure tenure;

� share and exchange bestpractices;� promote vocational train-ing and credit mechanismsfor entrepreneurship andemployment; and,� promote gender main-streaming in all urbanyouth matters. Applications submitted to

the Youth Fund are subject-ed to a thorough evaluationprocess to guarantee impar-tiality and equal treatmentof applicants. The processconsists of five steps: appli-cations are registered andgiven a unique referencenumber in the online data-base; applications are sub-jected to an eligibility checkto verify that they fulfill thebasic criteria required toreceive grants from thefund; eligible applicationsgo through a quality assess-ment and are scored on dif-ferent criteria related to thequality of the project pro-posal and the priorities andobjectives of the UrbanYouth Fund; the highestrated applications fromeach geographical regionare shortlisted; and, theSteering Committee of theFund reviews the shortlistedapplications and decides onwhich applications to

Competition approve. No fewer than 173 appli-

cants have received grantsunder the scheme since itwas established, with 63benefitting from the Fundsin 2009, 51 in 2010 and 59 in2011. To date, five projectsfrom Nigeria have partici-pated in the scheme, thehighest being in 2009 whenthree organizationsreceived funding. They areFriends of the Habitat for its

‘Sustainable YouthEmpowerment project’;Girls to mothers Initiative(G2MI) for the ‘Girls toMothers Project’ and, theSmallholders Foundation forits ‘Urban DevelopmentSecondary School Gardens.’ In 2010, the group Bright

Concept Initiatives (BCI) wassupported for its project on‘Creating an enabling envi-ronment for Youth ofGwandu LGA to attain self

and economic independ-ence,’ while in 2011, the LovePlanet Organization (LPO)was the single beneficiary.The Habitat Agenda, adopt-ed at the Habitat II summitin Istanbul in 1996, commitsgovernments and UN-HABI-TAT to work in partnershipwith youth and empowerthem to participate in deci-sion-making in order toimprove urban livelihoodsand develop sustainable

THE GUARDIAN, Monday, February 18, 201344

THE GUARDIAN, Monday, February 18, 2013 45HOMES&PROPERTY

Supreme Court resolves intra-family battle over Lagos Island property

FINALLY, the ownershipbattle over the primeLagos Island property,specifically located at No. 24Onisemo Street, Lagos, hasbeen laid to rest, courtesy ofa Supreme Court judgmentdelivered recently.The judgment was given ina case on appeal to theapex’s court by AlhajiGaniyu Iseogbekun,Modinat Bakare Isegbekun,Adiyatu Iseogbekun on onehand, Alhaji NurudeenKekere-Ekun, Alhaji R.A.Adewale, Alhaji RafiuAkinlade on the otheragainst Alhaji SikiruAdelakun and MadamKibitiyu Ajayi. While the for-mer were the first to thesixth appellants, the lasttwo were the respondents.In this appeal, the two setsof appellants failed to sus-tain their proof of owner-ship and consequently,Justice Aloma Mukhtar, inher lead judgment dis-missed the appeal as well asthe cross-appeal.This is a land matter, whichstarted in the High Court ofJustice Lagos State. Theplaintiffs in that courtclaimed that they are thesole owners of the land indispute,which is situate atNo. 24, Onisemo StreetLagos, because, according tothem, the original owner ofthe land in question is un-disputably Ajegun Bashuaof whom they are thedescendants’ Plaintiffs were survived by adaughter called HajiaSuwebatu Adufe, who wasin-turn survived by theplaintiffs. Hajia Suwebatuhad been proved to haveexercised many acts of pos-session on the land at vari-ous time and she at onetime, leased the propertyout and had collected rentsfrom her tenants until herdeath in 1981.After her death, the defen-dants instructed their coun-sel to write to the tenantsstopping them from paying

rents to the plaintiffs. It wasestablished that the defen-dants are now paradingthemselves as the owners ofthe property and collectingall the rents and benefits ofthe premises and it appearsthat the defendants havenow occupied, lawfully orunlawfully the land in dis-pute. Both parties in this matterput a lot of arguments,claims and counter-claimsin place.

In their writ of summonsthe plaintiffs claimed thefollowing reliefs:-a declaration that the hered-itaments situate at andknown as No 24, OnisemoStreet, Lagos is the familyproperty under YorubaNative Law and Custom ofthe descendants of AjegunBashua (Deceased)possession of such portionof the said hereditaments asare in the possession or con-trol of the defendants or any

of them.and an account of all rentsand profits collected by theDefendants from tenantsand the said hereditamentsand payments over the saidrents and profits to theplaintiffs annual rent valueis �50.00k”.Pleadings were exchangedand filed. After hearing thecase including the evidence,the trial court evaluated theevidence and its judgmentdid not, in any way, favour

any of the parties. While theclaims of the plaintiffs weredismissed and the counterclaim of the fouth - sixthdefendants were dismissed.Aggrieved by the decision

of the trial court, the plain-tiffs successfully appealedto the Court of Appeal,which entered judgment intheir favour though in part.In all, the appeal, wasallowed in favour of theplaintiffs and also dis-missed apparently in favourof the defendants.The defendants, now appel-lants appealed to the apex’scourt. The fourth - sixthdefendants were alsoaggrieved and also appealedto this court, and filed theircross-appeal.

Briefs were exchanged andfiled both counsel in theappeal adopted their briefs.The counsel on behalf oftheir respective clients for-mulated issues.Her lordship said the plain-tiffs had proved long posses-sion over a period of 30years, for they had estab-lished that their motherexercised various acts ofpossession over the proper-ty in dispute including leas-ing it out to strangers.“Whereas the above is theposition in this case, thefourth to sixthdefendants/cross-respon-dents have failed to estab-lish such possession, as theyhave not proved any act ofpossession, but ratherallowed the plaintiffs; moth-er to continue to exercisecontrol over the property.”She added: “Definitely, theappellants were not in pos-session and cannot expectan order of possession intheir favour. For the forego-ing reasoning, I answer thisissue in the negative andground, 2 of the cross-appeal to which it is relatedfails and it hereby dis-missed.”According to her: “the

cross-appeal has n meritand substance, and deservesto be dismissed. The cross-appeal is hereby dismissed.I assess costs at N50,000 infavour f each set of cross-respondents against thecross-appellants.”Endorsing the lead judg-

ment, Justice MuhammadMuntaka-Coomassie saidthough he initially had chal-lenge in grasping the factsof the case, the manner andreasons adduced by hislearned brother haveexplained it all.He submitted thus: “The

conclusion that the cross-appeal has no merit anddeserves to be dismissed iscorrect and I agree thatmust be dismissed. I too dis-miss the cross-appeal. Theappeal by the appellanttherefore fail same is herebydismissed in its entirety. Iendorse the order as tocosts.”

LitigationBy Emmanuel Badejo

Three different, though related claims had dogged the possessory right of aprime property pitching some families against one another, but the SupremeCourt of Nigeria recently decided the controversy, trailing No. 24 OnisemoStreet, Lagos Island, Lagos.

Aerial view of Lagos Island

THE GUARDIAN, Monday, February 18, 201346

THE GUARDIAN, Monday, February 18, 2013 47HOMES&PROPERTY

Nigeria, other African propertymarkets poised for strong growth

In the residential sector,the need for greater vol-umes of good quality hous-ing is reflected in a numberof ambitious new suburbsthat are either under con-struction or planned by pri-vate property developers onthe outskirts of existinglarge cities.

For instance, in Nigeria, theluxury residential sector inLagos continues to sufferfrom an oversupply of high-end properties built in theyears prior to the globalfinancial crisis. Despite this,rents and sales prices forhigh-end apartmentsremain elevated.

Apartments cost over US$1million in Lekki’s gatedcommunity and can be con-siderably more within Ikoyi.The prime residential mar-ket in Abuja is buoyant, andhas seen excellent growth.There is plenty of out-of-town residential construc-tion taking place in Abuja atmaster-planned schemessuch as UPDC’s Metro Cityand Adkan Services’ Sun City

According to the report,Headline rents in Nigeria’scommercial capital, Lagosremain among the  highestin the world, with achiev-able rents at above US$1,000per sq m per annum forsmaller spaces, althoughrents can be negotiateddown for larger require-ments. There remains only ahandful of existing build-ings able to provide highquality office spaces of morethan 1,000 sq m.

The pre-eminent multi-letbuilding is Churchgate II,which is in the process ofleasing rapidly now that ask-ing rents have been reviseddownwards to the US$850per sq m per annum mark.The availability of goodquality space is graduallyimproving, with severalGrade A schemes under con-struction. A potentially mar-ket-changing developmentis the huge Eko Atlantic Cityscheme, which will create anew city district on 9 sq kmof reclaimed land south ofthe current CBD, off VictoriaIsland. Office rents in theadministrative capital,Abuja, are a little belowLagos levels.

Retail activity in Nigeria’smajor cities appears to be onthe cusp of significantadvancement with theincreasingly rapid construc-tion and uptake of westernstyle retail and leisure malls.Ikeja City Mall in Lagos,anchored by the SouthAfrican retail giant Shoprite,has performed well sinceopening in December 2011.This is the second shoppingmall in  Lagos to be devel-oped by Actis, following thesuccessful Palms Mall on theedge of Lekki. There hasbeen little retail develop-ment historically in Abuja,apart from small centresgenerally located in office orresidential Towers AbujaMall in 2012.

In reaction to the report,the President, InternationalReal Estate Federation (FIAB-CI)-Africa Region, Mr. ChudiUbosi told The Guardian “ the

property market is recover-ing in Nigeria and Africa as awhole. Whether the recov-ery is such that a termstrong  can be used todescribe it is doubtful.

“Within my known param-eters I think that the recov-ery is fair. Access to funds isstill very poor, demand ishigh but availability ofmortgage facilities withinthe African continent is stillvery poor.

“Land titling problems con-tinue to militate againststrong demand of realestate.  Most Africaneconomies are still recover-ing from the global melt-down of 3/4 years ago andrecovery though on the wayis quite slow and deliberate.

“The stock markets ofthese countries are still trad-ing well below levels thatthey traded pre- meltdown. Iwould rather be cautious incategorizing the  demand asstrong. I still believe thatthough recovery is on theway, it is still very muted.”

The Executive Director,Africa Real Estate Society,Mr.  Akin Olawore said: “Theprojections are based onsocio- economic trend.About 65 per cent of Africanpopulation are in the work-ing age and all natural mate-rial resources on earth are atthe sub Saharan Africa andover 70 per net have notbeen exploited.”

Olawore noted that thechallenge is for the coun-tries within the sub SaharanAfrica, especially Nigeria tosustain the potential gold-mine through political sta-

CONTINUED FROM PAGE 31

THE GUARDIAN, Monday, February 18, 201348

Climate Change

Conservation

In the view of African climate change activists, developed countries must removerestrictions of intellectual property rights and pay full incremental costs of tech-nology transfer to protect developing countries.

IFC green bonds support projects to reduce greenhouse emissions—for exam-ple, by rehabilitating power plants and transmission facilities, installing solarand wind power, and providing funding for new technologies that result in sig-nificant reductions in emissions.

FOLLOWING the outcomes ofthe 18th Conference of

Parties of the UN FrameworkConvention on ClimateChange held in Doha, Qatar,last December, representativesof African civil society organi-sations (CSOs) and networks,meeting under the Pan AfricanClimate Justice Alliance, haveurged African governmentsnot to enter into climatechange deals that have disas-trous consequences for thecontinent.

In a declaration issued lastweek at the end of the three-day meeting, held at Kajiado inKenya’s Rift Valley Province,the civil society groups cau-tioned that “such blind dealswill condemn African peoplesto incineration and conflicts.”

The CSOs met to review andanalyse outcomes of the 18thConference of Parties of the UN

Framework Convention onClimate Change held in Doha,Qatar, last December.

They urged developed coun-tries to compensate Africa forthe full costs of harm by cli-mate change, which is largelyfuelled by high greenhouseemissions from industriesbased in the West.

Ahead of COP 18 last year, theAfrican civil society hadmobilised African govern-ments to demand that devel-oped countries cut emission byat least 40 percent below the1990 level by 2015 and 100 per-cent by 2050.

They called on industrialcountries to accept their histor-ical responsibilities, reconsidertheir position and recommitwithout further delay and con-

African climate change advocates cautiongovts against poor deals

d i t i o n s .In the declaration, a copy of

which was sent to PANA, therepresentatives of the CSOsagain called on the developedcountries to honour and deliv-er on their pledge of providingUS$ 100 billion every year until2 0 2 0 .

Further, they asked them toscale up pledges to fulfill theirobligation to provide ade-quate, new and additionalfunds as this amount is farfrom all estimates of climatefinance needed by developingcountries.

“We call for immediate estab-lishment of an independentprocess to conduct transpar-ent and consultative verifica-tion on developed countries’claim that they have successful-

ly delivered all Fast StartFinance of over US$ 30 billionto developing countries dur-ing 2010-2012 in accordancewith controversialCopenhagen Accord, whichmetamorphosed into CancunAgreement,” said the declara-tion.

In the view of African climatechange activists, developedcountries must remove restric-tions of intellectual propertyrights and pay full incremen-tal costs of technology transferto protect developing coun-t r i e s .

They oppose efforts to sellrather than transfer appropri-ate technologies, or tostrengthen rather than relaxintellectual property rights.

Currently, the developed

Drought...dried river bed, an act of climate change

The Environment

By Tosin Fodeke

countries are offering technol-ogy transfer to developedcountries at a cost.

But the CSO declaration saiddeveloped and developingcountries should support theadoption and development ofindigenous and locally inno-vated technology as well asensuring efficiency in technol-ogy transfer and deployment.

On agriculture, they urgedinclusion of gender equity andenhanced participation ofwomen, youth, indigenouspeople and marginalisedgroups in UNFCCC negotia-tions balancing the differencesfound in the North and Southr e s p e c t i v e l y .

In addition, they condemnedthe withdrawal of Canada,New Zealand, Russia and Japanfrom the second commitmentof the Kyoto protocol whichbegan in January 2013 and thecontinued refusal of UnitedStates to ratify the protocol.

in climate-related opportuni-t i e s .“IFC is ramping up its climate-

related investments becausethe private sector can play aleading role in addressing cli-mate change,” said JingdongHua, IFC VP and Treasurer.“Through its Green BondProgram, IFC enables large-scale investors to support proj-ects related to climate changein developing countries.”In FY12, IFC invested $1.6 billion

in climate-related invest-ments—more than 10 percent

of the institution’s overall com-mitments for the year. About70 percent of IFC’s investmentsin the power sector involvedenergy efficiency and renew-able energy.   By FY15, IFCexpects to double its climate-related investments to roughly$3 billion per year.

IFC Director of ClimateBusiness, Stephanie Miller said:“The IFC Green Bond Programsupports one of IFC’s strategicpriorities to develop and pro-mote innovative financialproducts that attract greater

investments to support renew-able energy, energy efficiency,and other climate-friendlyp r o j e c t s . ”

The bond received over-whelming support frominvestors focused on promot-ing socially responsible invest-ments. Some of the partici-pants in the bond include, 3MCompany, Blackrock, theCalifornia State Teachers’Retirement System (CalSTRS),Calvert Investments, EllomayCapital, Fjärde AP-fonden, FordMotor Company, Local

Government Super (LGS),Parnassus Investments, PraxisIntermediate Income Fund ,SSGA High Quality Green BondFund, TIAA-CREF, and theWashington State InvestmentBoard among others.

Manager of Environmental,Social and GovernanceResearch at ParnassusInvestments, Maria Kaminsaid: “The IFC Green Bond com-plements our responsibleinvestment strategies. Wefocus on incorporating envi-ronmental, social, and gover-nance analysis into our invest-ment research. By givinginvestors in the ParnassusFixed-Income Fund exposureto this unique bond, we canfurther support climate-relat-ed investments and receive a

AMEMBER of the World BankGroup, Internatonal

Finance Corporation (IFC) hasissued a $1 billion green bondthat will be used to support IFCclimate-friendly projects indeveloping countries. Thebond sets a precedent as thelargest green bond issue todate and was principally allo-cated to socially responsibleinvestment portfolios.

By making the three-yearbond a benchmark issue avail-able to investors globally, IFCaims to strengthen this grow-ing asset class. The bond, whichwas heavily oversubscribed,was sized to address thedemand from an increasingnumber of investors interested

IFC $1b green bond marks largest climate-friendly issuance

AS part of its green agenda,the Lagos state govern-

ment and a non-governmen-tal organization, LUFASI havesigned a Memorandum OfUnderstanding (MOU) for thedevelopment of a 20-hectaresland along Lekki Expresswayto serve as an urban forest andanimal rescue centre.

The centre, which construc-tion has already started islocated in the outskirts of Ajahalong the Lekki-Epe express-way and will serve as a plantand animal reserve, will alsoconsist of, a petting zoo, edu-cational centre, playgroundand animal hospital. 

Lagos Commissioner forAgriculture, Gbolahan Lawalexplained that the vision ofgovernment is to transformthe Lagos metropolis beforethe end of this decade into onethat will be recognized in theworld as a desirable place tolive and work with an attrac-tive business environment forinvestments.

“Critical to realizing thevision is ensuring that sustain-able development receives atleast similar attention as inother global mega cities thatcompete for businessinvestors. The global trendhints at ever-increasingemphasis on sustainabilityand ‘the green economy’,which translates into a needto ensure that economic,social and environmentaldevelopments are consideredin unison and grown in har-mony.” Said Lawal

President LUFASI DesmondMajekodunmi also explainedthat the vision of the rescuecenter in a nature reserve is toprovide a hub for care and vet-erinary treatment of aban-doned and maltreated ani-mals.

“ The location in the natureconservation area furtherallows it to serve as a hub foreducation in all matters relat-ing to sustainable develop-ment and being an eco-awareglobal citizen, whilst provid-ing Lagos with much neededgreen space and a recreationarea.

Lagos, groupsign MoU onurban forestpark

positive financial return”.The Head of Sustainability at

Local Government Super (LGS),Bill Hartnett said:   “LGS isproud to be the ultimateowner of part of this IFC Greenbond issuance. The greenbonds appeal to LGS on manyfronts. They are triple-A-ratednotes with competitive terms.They are financing much need-ed green infrastructure proj-ects globally.”

IFC green bonds support proj-ects to reduce greenhouseemissions—for example, byrehabilitating power plantsand transmission facilities,installing solar and windpower, and providing fundingfor new technologies thatresult in significant reductionsin emissions.

TheEnvironment

The Environment

Water

Climate Change

Conservation The consultations were vitally important as a contribution to the GlobalPlatform on Disaster Risk Reduction, which will take place in Geneva in May.The talks also took stock of achievements in implementing the existing agree-ment, the Hyogo Framework for Action

THE GUARDIAN, Monday, February 18, 2013 THE ENVIRONMENT

From Hendrix Oliomogbe, Asaba

From Joke Falaju, Abuja

every 10 days but who gets it?Does it get to the people whoneeded it most?” he noted. However, Jagtap urged allstakeholders to partner theagency to disseminate pre-dicted weather informationto the appropriate quarters.Minister of State forAgriculture and RuralDevelopment, Alhaji BukarTijani has said that theSeasonal Rainfall predictionprediction is significant toattaining food security in thecountry. he stated that theinformation is science-based,thus reliable to advise farm-ers on the appropriate plant-ing season.Tijani said, “The SRP isextremely relevant becausethey are scientific knowledgethat is based on weather pat-terns and necessary for foodsecurity.“The Prediction will helpthe Ministry to start our activ-ities early, advice farmersacross the nation of when toplant and what to plant. Itwill help us get prepared sothat we can get our food andhabitat secured to avoid what

49

IF information from an envi-ronmental expert in theUnited States of America isanything to go by, then theFederal Government couldgenerate as much as N400bil-lion from Seasonal RainfallPrediction (SRP).Dr. Shrikant Jagtap an envi-ronmental scientist, whogave the assertion in Abujaduring a two-day technicalconference on Application ofmeteorological informationon weather disaster, riskreduction and socio-econom-ic planning, said “if everyfarmer in every field inNigeria uses SRP, the govern-ment can generate overN400billion annually”He stressed the need toensure that precise weatherinformation gets to farmerspromptly, adding that theexpected benefit would notbe achieved if the rainfall pre-diction is implementedthereafter.In his presentation titled:

Improving AgriculturalProduction using Agro-Meteorological InformationJagtap urged the agency toprovide regular weather pre-diction compared to the pre-diction made once a year.Jagtap emphasised the needto make weather informa-tion available to farmers andother stakeholders whoneeded it most, adding thatrainfall prediction by theNigerian MeteorologicalAgency (NIMET) is a step outof many processes.“We must get the informa-tion into the hand of peoplewho needs to use it. For exam-ple, a crop farmer applies fer-tiliser only ones, planted onlyones but his crops are affect-ed daily by the weather so it’sneither the planting nor fer-tiliser application that iswrong but they don’t dowhat is right as far as theweather is concerned.“NIMET should go beyondone seasonal rainfall predic-tion which is done inFebruary by giving regularinformation. They do haveagro bulletins which come

Africa stakes out position on post-2015 development agenda

THE fourth Africa RegionalPlatform was concluded atthe weekend with a detailedset of commitments and rec-ommendations on the com-plex challenges Africa facesdue to surging economicgrowth, rapid urbanization,climate change and a widerange of natural hazards

Representatives of 40African States gathered forthe 4th Africa RegionalPlatform on Disaster RiskReduction to discuss Africa’sposition on a new globalframework for disaster riskreduction amidst continuingconcern over the ravages ofclimate change, drought,floods, heat waves, wildfiresand other natural hazards.Figures released by CRED

and UNISDR, the UN Office forDisaster Risk Reduction,showed that 18 million peo-ple were affected by drought

opportunity now to influ-ence investment in disasterrisk reduction and to influ-ence considerably the out-come of the WorldConference on Disaster RiskReduction in 2015In an unusual measure, five

of Africa’s Regional EconomicCommunities (ECOWAS,ECCAS, SADC, IGAD, EAC) metin Arusha to discuss the chal-lenges and to develop a jointposition on the new globalframework for disaster riskreduction which will beagreed at the WorldConference on Disaster RiskReduction hosted by Japan in2015. Africa’s experience ofimplementing the existing

last year and 8.8 million wereaffected by floods across sub-Saharan Africa. Economiclosses from 147 recorded dis-asters over the last two yearswere $1.3 billion.It is almost ten years since

Africa first agreed on aregional strategy for disasterrisk reduction. There havebeen striking successes atreducing the impact of majordisaster events such as thecurrent floods inMozambique and the threat-ened major drought last yearon the Horn of Africa butextreme weather events con-tinue to remind us of Africa’svulnerability and exposure tonatural hazards. Africa has an

happened during the flood-ing last year.” He said government is part-nering with the media tospread the SRP to the grass-roots, adding that the predic-tion will assist farmers toknow what to plant, when toplant and the variety of cropto plantHe noted that the FederalGovernment (FG) is capableof adding N400 billion intoits coffer if the SRP is wellimplementedAn expert from theUniversity of Ibadan, Mrs.Ibidun Adelekan said the SRPcan be used to inform deci-sions for food distributionand enhance food security.In her lecture titledM a i n s t r e a m i n gMeteorological Informationinto National DevelopmentPlanning, she informed thatclimate forecast will empow-er poor farmers for bettermanagement of risks if theSRP is adequately disseminat-ed.According to her, climatebased early warning aid epi-demic detection and control

A flood affected community in Nigeria...recently

Govt can rake in N400b from rainfallprediction, says expert

Delta gets committeeon water supply

DETERMINED to ensureeffective public water

supply in the state, the DeltaGovernment has establisheda 14-member committee oninfrastructure and watersupply.The committee was set up toaddress the problems associ-ated with public power sup-ply in the state. The mandateincludes regular monitoringof government’s water proj-ects and visits of water -pumping stations to find outtheir state of functionality,among others.At the inauguration of the

Mr. Harrison Dafiovor’sheaded committee in Asabaon last week, theCommissioner for WaterResources Development, Dr.Chris Oghenechovwen,lamented that the state gov-ernment had investedimmensely in water infra-structure but was yet to getcorresponding returns forthe benefit of the public.

“To ensure that this anom-aly is corrected, the commit-tee would review all projectdesigns and specificationproposals in the ministry,including the submissionsof consultants, to attain uni-formity of standard and toadvise management asappropriate”, saidOghnenechovwen.He also added that the com-mittee would also collate allwater schemes facilitated bythe intervention agenciessuch as the Niger DeltaDevelopment Commission(NDDC), the MillenniumDevelopment Goals (MDGs),the Delta State Oil ProducingAreas DevelopmentCommission (DESOPADEC)and River BasinDevelopment Authorities,for possible take- over by theappropriate department ofthe ministry.

Dafiovor, who is theDirector of Water Supply inthe Water ResourcesDevelopment, pledged thatthe committee would meetthe expectation of the gov-ernment.

Hyogo Framework for Action,the first global action plan forreducing disasters, was wide-ly debated during these threedays.UNISDR Chief and the UN

Special Representative forDisaster Risk Reduction,Margareta Wahlström, said:“Africa’s economic growth isbringing opportunities andnew investment. It has thehighest rate of urbanizationin the world. Half of Africa’spopulation will live in citiesand towns by 2050.Investment decisions, whichare being made, now willdetermine the future of disas-ter risk across the continent.Wahlstrom congratulated

U.S. risks financial exposurefrom climate change, GAO

the participants from 40countries across Africa fortheir contribution to shapingthe international frameworkfor disaster risk reduction,which will follow on from thecurrent Hyogo Frameworkfor Action (HFA), whichexpires in 2015. Ms. Wahlström said: “This

Regional Platform has shownthat disaster risk reduction iscentre stage for all Africancountries and is essential tobuilding resilience to disas-ters as we debate the post-2015 development agendaand the future of the HFA. “The will to mitigate the

impact of disasters is evidentacross the continent from theongoing detailed risk profil-ing of every district inEthiopia to the successfulearly warning systems whichMozambique demonstratedin recent weeks as floodwaters engulfed large parts ofthe country.

“The trend in Africa now is toemphasize work at commu-nity level and to tackle riskfrom the ground up. There isa clear message that humani-tarian response and develop-ment actors must integratetheir actions and make betteruse of scarce resources toensure their actions are com-plementary and respondingto long-term communityneeds. This shift to buildingresilience deserves donorsupport. I am also greatlyencouraged by the participa-tion of the private sector, themedia and youth representa-tives in the Platform.” Africa’s governments and

Regional EconomicCommunities will also bereporting on their progressin implementing the HyogoFramework for Action at theGlobal Platform for DisasterRisk Reduction in May thisyear, hosted by UNISDR inGeneva.

THE United States is at highrisk of financial exposurefrom climate change, theGovernment AccountabilityOffice (GAO) said, two days afterPresident Barack Obama vowedto tackle the issue with or with-out Congress’ help.For the first time, the non-parti-san congressional watchdogadded fiscal exposure from cli-mate change to its “High RiskList” of measures the federalgovernment needs to fix.“Climate change is a complex,crosscutting issue that posesrisks to many environmentaland economic systems - includ-ing agriculture, infrastructure,ecosystems, and human health -and presents a significant finan-cial risk to the federal govern-ment,” the agency said.There are now 30 programs

and operations the GAO consid-ers at high risk for waste, fraud,abuse and mismanagement, orthat need broad-based transfor-mation, from the managementof federal oil and gas resourcesto enforcement of tax laws.“GAO added this area becausethe federal government is not

well positioned to address thefiscal exposure presented by cli-mate change and needs a gov-ernment-wide strategicapproach with strong leader-ship to manage related risks,”the agency said in a statement.The government owns exten-sive infrastructure, includingmilitary bases; insures propertythrough the National FloodInsurance Program; and pro-vides aid to victims of naturaldisasters, making it especiallyvulnerable to the impact of cli-mate change, GAO said.Climate change, believed by

many to be spurred by humanactivities that release heat-trap-ping greenhouse gases into theatmosphere, has been linked tomore extreme weather, sea levelrise that can make storm surgesmore damaging, and worsen-ing heat waves, wildfires anddroughts.In addition to the risk from cli-mate change, GAO also warnedof potential gaps in environ-mental satellite data starting assoon as 2014, which could makeweather forecasts and warningsfor hurricanes, storm surgesand floods less accurate andtimely.

THE GUARDIAN, Monday, February 18, 201350

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COMPANY’S RESULT CONTINUE FROM PAGE 30

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INTRODUCTION

IN a bid to support government at all levels toaddress the many infrastructural deficits

bedeviling the country, especially in the areas ofhousing, agriculture and roads, the Securitiesand Exchange Commission (SEC) last week con-cluded a three-day capacity building workshopon securitization for some of its workforce. Theworkshop was also intended to spadework theimminent introduction of Securitization in thebasket of products available in the Nigerian cap-ital market in line with the product diversifica-tion objective of the ongoing reform agendawhich the current leadership of the SEC is lead-ing in the Nigerian capital markets. The productdiversification objective intends to give breadthand depth by widening the choices available tothe investor on the Nigerian bourse.SECURITIZATION DEFINED Securitization is thefinancial practice of pooling various types ofcontractual debt such as residential mortgages,commercial mortgages, auto loans or creditcard debt obligations and selling said consoli-dated debt as bonds, pass-through securities, orCollateralized mortgage obligation (CMOs), tovarious investors. The principal and interest onthe debt, underlying the security, is paid back tothe various investors regularly. Securitiesbacked by mortgage receivables are called mort-gage-backed securities (MBS), while thosebacked by other types of receivables are asset-backed securities (ABS). Securitization hasevolved from its tentative beginnings in the late1970s to an estimated outstanding of $10.24 tril-lion in the United States and $2.25 trillion inEurope as of the 2nd quarter of 2008. In 2007,ABS issuance amounted to $3.455 trillion in theUS and $652 billion in Europe. WBS (WholeBusiness Securitization) arrangements firstappeared in the United Kingdom in the 1990s,and became common in variousCommonwealth legal systems where seniorcreditors of an insolvent business effectivelygain the right to control the company. HISTORY OF SECURITIZATIONExamples of securitization can be found at leastas far back as the 18th century. Among the earlyexamples of mortgage-backed securities in theUnited States were the farm railroad mortgagebonds of the mid-19th century which con-tributed to the panic of 1857. In February 1970,the U.S. Department of Housing and UrbanDevelopment created the first modern residen-tial mortgage-backed security. The GovernmentNational Mortgage Association (GNMA or GinnieMae) sold securities backed by a portfolio ofmortgage loans.Modern securitization took off in the late 1990sor early 2000s, thanks to the innovative struc-tures implemented across the asset classes, suchas UK Mortgage Master Trusts (concept import-ed from the US Credit Cards), Insurance-backedtransaction (such as the ones implemented bythe insurance securitization guru EmmanuelIssanchou) or even more esoteric asset classes(for example securitization of lottery receiv-ables). As the result of the credit crunch precipi-tated by the subprime mortgage crisis the mar-ket for bonds backed by securitized loans wasvery weak in 2008 unless the bonds were guar-anteed by a federally backed agency. As a resultinterest rates are rising for loans that were previ-ously securitized such as home mortgages, stu-dent loans, auto loans and commercial mort-gages.STRUCTUREAccording to Professor Phillip R. Wood (supra),in a classic securitization, an originator (typical-ly a bank or a corporate entity) sells receivablesto a third party special purpose vehicle (“SPV”).The SPV is formed as a legally independent enti-ty from the originator. The SPV then borrowsmoney through a bond or note issuance tofinance the purchase price and repays the bor-rowing out of the proceeds of receivablesbought by it. The SPV then grants security to theinvestors over the receivables to secure the bor-rowing. The notes issued pursuant to a securiti-zation are typically rated by an external ratingagency. Professor Wood argues that the tradi-tional securitization is essentially a sophisticat-ed form of factoring or discounting of debts.However, we question this description in thelight of the development of exotic variants ofsecuritization.In the course of securitization, assets which areordinarily not marketable are converted to mar-ketable securities, which could take the form ofcollateralized debt obligations, asset-backedsecurities, residential mortgage-backed securi-ties, etc. Upon securitization of assets, suchassets may be removed from the originator’sbooks and the purchase proceeds may then beused by the originator for other purposesincluding granting of new set of loans. Otherhybrid structures of securitization have beenutilized in structured financing transactions

the requirement to record derivatives at fairvalue on the balance sheet. There is also a gener-ally accepted principle that, where derivativesare being used as a hedge against underlyingassets or liabilities, accounting adjustments arerequired to ensure that the gain/loss on thehedged instrument is recognized in the incomestatement on a similar basis as the underlyingassets and liabilities. Earnings: Securitization makes it possible torecord an earnings bounce without any realaddition to the firm. When a securitization takesplace, there often is a "true sale" that takes placebetween the Originator (the parent company)and the SPE. This sale has to be for the marketvalue of the underlying assets for the "true sale"to stick and thus this sale is reflected on the par-ent company's balance sheet, which will boostearnings for that quarter by the amount of thesale. While not illegal in any respect, this doesdistort the true earnings of the parent company.Admissibility: Future cash flows may not get fullcredit in a company's accounts (life insurancecompanies, for example, may not always get fullcredit for future surpluses in their regulatorybalance sheet), and a securitization effectivelyturns an admissible future surplus flow into anadmissible immediate cash asset.Liquidity: Future cash flows may simply be bal-ance sheet items which currently are not avail-able for spending, whereas once the book hasbeen securitized, the cash would be available forimmediate spending or investment. This alsocreates a reinvestment book which may well beat better rates.DISADVANTAGES TO ISSUERMay reduce portfolio quality: If the AAA risks, forexample, are being securitized out, this wouldleave a materially worse quality of residual risk.Costs: Securitizations are expensive due to man-agement and system costs, legal fees, underwrit-ing fees, rating fees and ongoing administra-tion. An allowance for unforeseen costs is usual-ly essential in securitizations, especially if it is anatypical securitization.Size limitations: Securitizations often requirelarge scale structuring, and thus may not becost-efficient for small and medium transac-tions.Risks: Since securitization is a structured trans-action, it may include par structures as well ascredit enhancements that are subject to risks ofimpairment, such as prepayment, as well ascredit loss, especially for structures where thereare some retained strips.ADVANTAGES TO INVESTORSOpportunity to potentially earn a higher rate ofreturn (on a risk-adjusted basis)Opportunity to invest in a specific pool of highquality assets: Due to the stringent require-ments for corporations (for example) to attainhigh ratings, there is a dearth of highly ratedentities that exist. Securitizations, however,allow for the creation of large quantities of AAA,AA or A rated bonds, and risk averse institutionalinvestors, or investors that are required to investin only highly rated assets, have access to a larg-er pool of investment options.Portfolio diversification:Depending on the secu-ritization, hedge funds as well as other institu-tional investors tend to like investing in bondscreated through securitizations because theymay be uncorrelated to their other bonds andsecurities.Isolation of credit risk from the parent entity:Since the assets that are securitized are isolated(at least in theory) from the assets of the origi-nating entity, under securitization it may be pos-sible for the securitization to receive a highercredit rating than the "parent," because theunderlying risks are different. For example, asmall bank may be considered more risky thanthe mortgage loans it makes to its customers;were the mortgage loans to remain with thebank, the borrowers may effectively be payinghigher interest (or, just as likely, the bank wouldbe paying higher interest to its creditors, andhence less profitable).RISKS TO INVESTORSLiquidity riskCredit/default: Default risk is generally accepted

as a borrower’s inability to meet interest pay-ment obligations on time.[20] For ABS, defaultmay occur when maintenance obligations on theunderlying collateral are not sufficiently met asdetailed in its prospectus. A key indicator of a par-ticular security’s default risk is its credit rating.Different tranches within the ABS are rated differ-ently, with senior classes of most issues receivingthe highest rating, and subordinated classesreceiving correspondingly lower credit rat-ings.[16] Almost all mortgages, including reversemortgages, and student loans, are now insuredby the government, meaning that taxpayers areon the hook for any of these loans that go badeven if the asset is massively over-inflated. Inother words, there are no limits or curbs on over-spending, or the liabilities to taxpayers.However, the credit crisis of 2007–2008 hasexposed a potential flaw in the securitizationprocess – loan originators retain no residual riskfor the loans they make, but collect substantialfees on loan issuance and securitization, whichdoesn't encourage improvement of underwrit-ing standards.Event riskPrepayment/reinvestment/early amortization:The majority of revolving ABS are subject to somedegree of early amortization risk. The risk stemsfrom specific early amortization events or payoutevents that cause the security to be paid off pre-maturely. Typically, payout events include insuf-ficient payments from the underlying borrowers,insufficient excess spread, a rise in the defaultrate on the underlying loans above a specifiedlevel, a decrease in credit enhancements below aspecific level, and bankruptcy on the part of thesponsor or servicer. Currency interest rate fluctuations: Like all fixedincome securities, the prices of fixed rate ABSmove in response to changes in interest rates.Fluctuations in interest rates affect floating rateABS prices less than fixed rate securities, as theindex against which the ABS rate adjusts willreflect interest rate changes in the economy.Furthermore, interest rate changes may affectthe prepayment rates on underlying loans thatback some types of ABS, which can affect yields.Home equity loans tend to be the most sensitiveto changes in interest rates, while auto loans, stu-dent loans, and credit cards are generally less sen-sitive to interest rates.WHAT CAN BE SECURITISEDIt is pertinent to state that almost any asset can besecuritized. Typical asset classes include:(a) Bank loans;(b) Oil and gas receivables;(c) Auto and consumer loans;(d) Residential mortgage loans;(e) Future flows including remittance flows to orfrom MTOs;(f) Diversified Payment Rights; and(g) Trade receivables.KEY TRANSACTION DOCUMENTATIONThe documentation requirements will dependon the transaction structure ultimately chosenby the mandated lead arrangers in consultationwith the originator. In relation to a securitizationof future flows involving remittance flows froman MTO, key transaction documentation mayinclude the Facility Agreement, SecurityAgreement, Deposit Account Control Agreementand Charge over Accounts.CONCLUSIONCorporate entities in emerging markets stronglydesire access to cheaper funding options.Securitization is one of such funding mecha-nisms that has been explored and has proved tobe immensely beneficial to both the investinginstitutions and originators alike. However, thesevere disruption in the international financialmarkets occasioned by the Eurozone debt crisisas well as an increasingly competitive environ-ment compel international financial institutionsto look to emerging markets for profitableopportunities that will enable them generateoptimal returns whilst maintaining acceptablecapital adequacy and liquidity ratios in the lightof the reforms to securitization activity proposedby the Basel III framework. It is hoped that otherNigerian banks and corporates with future flowsthat can be securitized, especially remittanceflows and trade receivables, will do likewise.

Sec Prepares To Introduce Securitization On The Nigerian Stock Exchange

including the securitization of DiversifiedPayment Rights and a remittance-backed directloan structure that is a hybrid between a securiti-zation and an unsecured loan, both examples offuture flow transactions. These writers haverecently advised on a transaction in which thelatter structure was adopted.Basically, this structure involves the securitiza-tion of future flow receivables in the form ofremittance flows generated by the borrower ororiginator in the course of its business opera-tions. A future flow securitization typicallyinvolves a company obtaining financing securedby future receivables expected to be generatedthrough a specific line of its business. Under thetransaction in question, a leading mid-tierNigerian bank, had obtained a US$150 Millionremittance-backed syndicated amortizing termloan facility arranged by three internationalbanks including Standard Bank Plc.

The facility is secured and is to be repaid by afuture flow of dollar-denominated remittancesby way of reimbursement rights accruing to theNigerian bank from an MTO.There was also a recent residential mortgage-backed securities transaction involving aNigerian issuer, FMBN SPV Issuer Limited(“FMBN”), which issued N6 Billion worth of notesby way of a private placement under the secondseries of its N100 Billion Residential Mortgage-backed Securities Programme. The transactionwas fully guaranteed by the Federal Governmentof Nigeria and was sponsored by the FederalMortgage Bank of Nigeria (“FMBN”).MOTIVES FOR SECURITIZATIONADVANTAGES TO ISSUERReduces Funding Costs: Through securitization,a company rated BB but with AAA worthy cashflow would be able to borrow at possibly AAArates. This is the number one reason to securitizea cash flow and can have tremendous impacts onborrowing costs. The difference between BB debtand AAA debt can be multiple hundreds of basispoints. For example, Moody's downgraded FordMotor Credit's rating in January 2002, but seniorautomobile backed securities, issued by FordMotor Credit in January 2002 and April 2002,continue to be rated AAA because of the strengthof the underlying collateral and other creditenhancements.Reduces asset-liability mismatch: "Dependingon the structure chosen, securitization can offerperfect matched funding by eliminating fundingexposure in terms of both duration and pricingbasis. Essentially, in most banks and financecompanies, the liability book or the funding isfrom borrowings. This often comes at a high cost.Securitization allows such banks and financecompanies to create a self-funded asset book.Lower capital requirements: Some firms, due tolegal, regulatory, or other reasons, have a limit orrange that their leverage is allowed to be. By secu-ritizing some of their assets, which qualifies as asale for accounting purposes, these firms will beable to remove assets from their balance sheetswhile maintaining the "earning power" of theassets.[18]Locking in profits: For a given block of business,the total profits have not yet emerged and thusremain uncertain. Once the block has been secu-ritized, the level of profits has now been locked infor that company, thus the risk of profit notemerging, or the benefit of super-profits, hasnow been passed on.Transfer risks (credit, liquidity, prepayment, rein-vestment, asset concentration): Securitizationmakes it possible to transfer risks from an entitythat does not want to bear it, to one that does.Two good examples of this are catastrophe bondsand Entertainment Securitizations. Similarly, bysecuritizing a block of business (thereby lockingin a degree of profits), the company has effective-ly freed up its balance to go out and write moreprofitable business.Off balance sheet: Derivatives of many types havein the past been referred to as "off-balance-sheet."This term implies that the use of derivatives hasno balance sheet impact. While there are differ-ences among the various accounting standardsinternationally, there is a general trend towards

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BusinessInterview

Maersk Shiiping Line was reported to be devel-oping biofuel as alternative to petroleum fuel.At what stage of the development of this criticaloperation input is the company now?

WE make the environment an important ele-ment in the way we operate in the whole

group. As for Maersk Line, we have been leadingthe way in things, like eliminating sulphorfrom exhaust, and we are also very active inreducing fuel consumption. So, we had madeplans since 2008 to reduce our fuel consump-tion. CO2 emissions by 25 per cent before 2020.Actually we have plan to have our emission ofCO2 cut by 40 per cent from 2007 to 2020, thatis the plan. So we are very active on the environ-mental side.

Nigeria is a country, which grows over yearswith huge population, so there are a lot ofopportunities and we are expected to continueboth import and export. Nigeria also has a num-ber of natural resources. First is oil, agricultureproducts, public utilities among others, so bothimport and export potentials in Nigeria is verysignificant. How much is your company planning to investin the proposed badagry port?It is actually the APM Terminals, which is anoth-er part of the group that is doing that. But weare in Badagry, since what we are proposing isin full course, we have been proposing, but weneed to go together with other companies sincewe are not a specialist. You know we are run-ning a refinery or handling bulk cargoes, so, wewant to line up with other specialist, because itis a big investment.

We need to build a very expensive brick walltowards the ocean, and that mean that the com-panies that will do other part of the project alsoneed to be partners to finance it.

It is a little bit too early to announce the cost ofthe project, but we believe that the first phasewill be about 1 billion dollars just to do thebreak-water and the first facilities. But this amulti-billion dollar project, when it is fully

developed.The World Bank is locating a deep-sea port, nottoo far away from Badagry, do you see that as athreat to your new project?I think there are lots of projects across Nigeriaand across West Africa, in a very large scale, butI believe the team of companies behindBadagry is a very strong team and we have allthe resources to do this, basically without get-ting external financing. So we can guaranteethat the project will be carried through.The demand for shipping services is decliningglobally, according to UNCTAD’s recent reporton maritime. How has this affected yourgroup’s desire  for new building in oder toincrease your fleet?We are satisfied with our current order bookand have no immediate plans to place neworders. We have ordered the largest, most effi-cient ships in the world, because they will makeus even more competitive by lowering our unitcost and sustaining our carbon leadership posi-tion. Even with the launch of new vessels, we will notadd capacity into the market beyond the mar-ket growth forecast.

We have tools available to adjust our network,which we can leverage to ensure that we do notcreate overcapacity in the market; slow steam-ing, idling and slippage.

Maersk group has been doing business inNigeria for a long time. Do you think Nigeria isthere in the global competitive business, espe-cially shipping?

In terms of the number of shipping lines call-ing in and out of Nigeria, we can say business isvery competitive. What we are trying to do is toinvest more in the country. Maersk line is a lead-ing shipping company calling in Nigeria. Wehave almost 30 per cent of the market share andwe are very pleased with that. I think we offergood product, quicker service and good clear-ing in and out of the terminal.In what way has the group been contributing

to the socio-economic advancement of the

vessels on West African shipping route someyears ago, what informed that decision andwhat effect has that deployment on shippingbusiness along the route so far?

The vessels you talked about are the WAFMAXvessels.

The expansion of the West African marketsand the strategic location combined with infra-structure bottlenecks were major reasons forintroduction of the WAFMAX vessels. The ves-sels with their greater capacity and energy effi-ciency support our ambition and extend ourcommitment to this important growth market.

Once a market served entirely small ‘feeder’vessels operating from hubs like Algeciras,Spain, the 4,500 TEU WAFMAX vessels were pur-pose-built to provide Maersk Line’s Asian cus-tomers with direct services to West Africanports. The ships are 250 metres long with adraught of 13.5 metres, the maximum sizeallowable in West African ports. Some of thevessels are equipped with onboard cranes toenable calls at ports without standing cranes.

The growth of the African market, combinedwith physical infrastructure not developing atthe same speed, has created a demand for shipswith special designs that are able to match themaximum capacity of the ports. 

The WAFMAX has enabled Maersk Line to sus-tain and maintain its market leadership posi-tion. What are your investment plans in Nigeria inthe next few years, especially as a member ofthe group is in control of most lucrative portterminals in the country?We have invested over $200 million in modern-izing and upgrading the Apapa terminal. Weare making additional USD135 million invest-ment in the expansion of the Apapa terminaland more opportunities may turn up in com-ing years.

The additional $135 million investment is formodernization and upgrading of the terminalwhich includes terminal yard redevelopmentand expansion, new staff amenities and cus-tomer service building, acquisition of morecontainer handling equipment, implementa-tion of new terminal operating systems and anew Customs container inspection facility.

The yard redevelopment and expansion is tothe enable Apapa terminal increase capacity tocope with increased volume till 2016.

The project will include development of newcontainer stacking areas such as the oldSunshine Oil and Dangote Cement areas, which

immediate environment where it is operating,especially Nigeria?What we are doing now is for the whole of WestAfrica because the ships sails to more that onecountry. We are introducing a series of 22 largevessels to make call to West African ports, takingup to 4500 containers per ship. They have start-ed calling at Apapa and we want to make themto be able to call at other ports in Nigeria. So thisis a major step forward and a commitment of atotal of $3 billion to the west coast of Africantrade. So we are quite excited about this.

On the terminal side, of course, we are commit-ting, with ground breaking ceremony at Apapaterminal, we are going to expand the capacityfrom 700,000 TEUS to 1.2m TEUS per year.Of course, the Nigerian import and export arenot growing so strong enough, but we thinkthey will resume a rise and we think this expan-sion will carry us into 2017. Do you think Nigeria has the potential tobecome a hub of shipping activities in the WestAfrican sub-region?To have a big port, you need to have the market.So Onne is never going to be a really big port butthere is need for big port in West Africa. But webelieve that when the Apapa and other portscome to full utilization in 2017, we should have alarge merger port coming into operations. Weare proposing to government, discussing withthem to initiative the need for such a project inarea of Badagry.

You need somewhat between $1 and $3 billionto build a really big port. In Apapa, we have sofar invested $200 million and by the time wewill finish the phase we just started today, wewould have invested $350 million.What are those things to be put in place for thedevelopment of a hub port in Nigeria? First and foremost, there has to be, ofcourse, themarket, there have to be shipping lines that arewilling to use the port because they think it isgood for logistic and reduces cost. So, above all,it has to be very effective in the way it operatefor lower operational cost.

Second, it has to be a natural place where it islogical for big vessels to call, load and off loadinto smaller container vessles that will take thecargoes to their final destination.

There is no enough opportunity to developApapa port into a terminal port because it is avery congested area, it does not have a lot ofdraught and it is not a complete efficient placein term of access. Maersk shipping line planned to deploy bigger

Andersen

Nils Andersen is the Chief Executive Officer of the Danish BusinessConglomerate, AP Moller-Maersk group.He was in Nigeria a few days ago and spoke with DAVID OGAHon howNigeria can become the hub of maritime activities in West and Central Africaand how deficiency of infrastructure combined with growing market hascaused a huge demand for shipping services. Excerpts.

Nigeria’s big market critical for shipping

THE GUARDIAN, Monday, February 18, 2013 63

were part of the original Apapa concession, butnot handed over to APM Terminals until recently.

The project will also convert the terminal to fullRTG (yard crane) operations, and includes pur-chase of many items of container handlingequipment, a new customer service building,new employee amenities buildings as well asoffice for Customs, and a new Customs containerinspection area. The project will also includestate of the art terminal control systems includ-ing a satellite-based container positioning sys-tem.

The growth in container volumes will requireadditional capacity beyond 2016 and that is whywe are embarking on the Badagry green-fieldport project. What are those things that are peculiar to Nigeriain business that you don’t find in other countrieswhere your presence is prominent?The combination of significant energy resources,a large population and a growing middle-classwith buying power is a very strong combination.How comfortable is it for a member of yourgroup to be operating a terminal in Apapa whenthe concession agreement between it and thegovernment is not backed up by any knownNigerian law?To the best of our knowledge, our agreement isbacked up by legislation. The Nigerian Ports Authority (NPA) Act empow-ers it to involve private companies in its opera-tions. So that law covers the concession pro-gramme carried out in 2006 and which APMTerminals participated in. Can you relate some of your good or bad experi-ence since you started operating in Nigeria?We are happy to operate in Nigeria and con-tribute to the growth of its economy. We haveenjoyed good collaboration with the govern-ment, partners and our customers. There istremendous growth in the Nigerian economy.APM Terminals Apapa has solved congestionissues, which had significant cost to the Nigerianeconomy. We have promoted trade, growth andtransparency to the benefit of our business andthe local community.

We use Apapa as a best-practice example inother parts of the world.Further development of the infrastructure suchas roads and rail are needed but I know also thatthe government is working towards these. What is the significance of the ground breakingceremony that you performed at the terminaltoday?The groundbreaking ceremony is to flag off finalphase of redevelopment and expansion of theApapa container terminal. It will make the termi-nal the largest and most modern terminal inWest Africa with a capacity of 1.2 million TEU peryear.

It will benefit the people working in the termi-nal, who will have better, safer conditions, it willbe good for the environment, because pollutionwill be reduced, and it will further enableNigerian business to import and export goodsand products.

Apapa has already for years promoted trade anddevelopment and attracted customers, making itthe busiest terminal in West Africa. This is anoth-er important step in this exciting journey.

Many efficiency measures and modernisationshave been carried through in recent years, liftingthe productivity and developing safety and trans-parency, so much so that we use it as a best-prac-tice example for terminals in other markets. Wehope and believe that Apapa will continue to be aterminal we can all be proud of.

The expansion shows that the Nigerian econo-my is still growing and has potential for moregrowth. A more efficient and larger terminal willbe good for Maersk, for the Nigerian economyand for the Customs officials. Container volume to Nigeria was low last year.APM Terminals Apapa could not even meet itsprojected volume of 700,000 TEUs, but despitethis you’re planning to develop a new port inBadagry. Don’t you think this will lead to overca-pacity?No, not necessarily. The growth in volume is solidand new capacity will be needed in the mediumterm. With the current rate of container volumegrowth, the ports in Lagos will be out of capacityby 2016. Why exactly are you developing Badagry port?APM Terminals is currently one of the largest portand terminal operators in Africa, and in WestAfrica in particular, where APM Terminals GlobalTerminal Network include nine facilities in eightWest African nations, including Apapa Container

Terminal, and West Africa Container Terminalin Onne, Nigeria.

APM Terminals Apapa, which assumed opera-tions at Lagos’ Apapa Container Terminal in2006 is now the busiest container terminal inWest Africa, handling 600,000 TEUs in 2011with throughput for 2012 projected at 720,000TEUs.

Nigeria’s container volume, which totaled 1.4million TEUs last year will outstrip existingport capacity by 2017. At present, about 85 per-cent of all Nigerian non-oil cargo passesthrough the port of Lagos. Over the next three decades, Nigerian annualcontainer traffic is expected to grow to 10 mil-lion TEUs.

The Badagry Mega-Port project fits well intoAPM Terminals’ strategy of infrastructuredevelopment in targeted high-growth mar-kets. The Badagry port project fits well into our strat-egy and competencies. When Badagry is devel-oped, we will have three ports to call with WAF-MAX, which will reduce waiting time forimporters and exporters as well as pollution.

We are very pleased with the support thisproject has received from authorities and keystakeholders. The business case is good for allparties. How much are you planning to invest  inthe Badagry port project?It is too early for us to comment on investmentamounts. Currently, we are working with thestate and federal government on the permis-sion process with a goal of opening the firstphase of the project in 2016.It is a huge project with the first phase – theconstruction of the breakwaters costing over abillion dollars. You’re in  oil and gas business  elsewhere. Isthere a possibility that Maersk Oil will do samein Nigeria in the near future?We continue to look for investments opportu-nities within the energy sector, especiallyaround oil service, supply and towage-safetyvessels. Oil exploration can’t be ruled out com-pletely but we already have made sizeable oildiscoveries in Angola and Norway, which willhave strong focus in coming years, so I doubt ifwe will invest in oil in Nigeria in the foresee-able future.You met with President Jonathan in Abuja yes-terday. It was not the first time you met withthe President. Do you think his administrationis creating  the right policies for economicdevelopment?President Goodluck Jonathan is leading thecountry in the right direction. He has an Economic Management Team that iscomposed of knowledgeable individuals and Ibelieve the Nigerian economy will continue togrow under his leadership.

President Jonathan told us that his adminis-tration was working hard to diversify andexpand the Nigerian economy. And I think thatis commendable. We have also assured Mr.President and the good people of Nigeria ofour contributions to the growth of the econo-my.

Africa has become increasingly important toour group and it has potential for much more.Nigeria, as the second largest economy on thecontinent, is important to us.

The region’s needs and our offers and ourservices are a perfect match

We will continue to support Nigeria’s growthby enabling trade, making transport more effi-cient and investing in developing local talent. We have a significant presence and long-term

commitment in the country and have mademajor investments here. We strive to be a com-pany, which can be trusted to deliver what wepromise. Containerized trade between Africancountries has is significant potential – forAfrican business, for the environment and forus. Containerised intra-African trade makes uparound five per cent of the total trade whereasIntra-American trade is 48 per cent and Intra-Europe is at 72 per cent. APM Terminals is alsoresearching into how to connect the ports onthe coast with hinterland markets for land-locked countries. Our investment in WAFMAXvessels which I talked about earlier is $2.1 bil-lion with the last sets of vessels scheduled fordelivery in 2013.

Nigeria will, along with other growth mar-kets, be a driver for future global growth. It isrich in natural resources, not least in agricul-ture and oil and gas.

There is no enough opportunity to develop Apapa port into a terminal portbecause it is a congested area, it does not have enough draught and it is notan efficient place in term of access.

The expansion shows that the Nigerian economy is still growing and haspotential for more growth. A more efficient and larger terminal will be goodfor Maersk, for the Nigerian economy and for the Customs officials.

services’ growth, says Andersen

Andersen

THE GUARDIAN, Monday, June 6, 201164 THE GUARDIAN, Monday, February 18, 2013

TaxWatch

ACCORDING to Interna-tional Financial Report-

ing Standards, certainattributes are necessary toensure that information pro-vided in financial reports isuseful to its users. Thesequalitative characteristicsare: ease of understanding;relevance; comparabilityand reliability. For any infor-mation to be considered asreliable certain attributesmust be present includingfaithful representation, sub-stance over form and com-pleteness. These attributesare applicable to all forms ofinformation whether in theprivate or public sector andregardless of the intendedusers. The Federal Inland RevenueService (FIRS) recently re-ported that it has closed the2012 fiscal year with a totalcollection of N5.007 trillion(N4.628 trillion in 2011). Thiswas described as the highestcumulative tax collected inthe history of the FIRS whichis significantly higher thanthe budget of N3.635 trillion.This of course looks like agood performance based on“what was” but the questionis - do we know what “couldhave been”?Out of the total collection

N1.806 trillion came fromnon-oil taxes (N1.557 trillionin 2011) which means oiltaxes contributed N3.201 tril-lion or circa 64%. Given thatthe FIRS collected N4.628 tril-lion in 2011, how come thetotal budget for 2012 was re-duced by a whopping N1 tril-lion to N3.635 trillion?Although a budget is simplya plan but it must be suffi-ciently challenging to driveperformance. It appears weeither do not fully appreciatethe principles of budgetingor we deliberately ignorethem to set targets that weare almost guaranteed to ex-ceed. Take Capital Gains Tax(CGT) for example, based onthe information available onthe FIRS website the budgetfor 2012 was a paltry N2.8 bil-lion while a sum of N8.9 bil-lion was collected. Going bythe budget, with CGT at 10% itmeans the federal govern-ment expected a total tax-able capital gains of N28billion for the whole year forall chargeable transactionsby all corporate entities andresidents of the FCT. Thislooks to me like a possiblegain from the sale of a singleproperty in one of the majorcities like Lagos or Abuja. Notsure if this is reconciled withany information from theland registry and disclosuresin annual reports.Compared to the conserva-tive 2012 budget for all taxesthe actual collection is a ster-ling performance of N1.372trillion or 38% over budget.On the other hand, if youcompare this against the col-lection for 2011, it is only amarginal increase of N369billion or 8% which includesthe windfall from oil. It willbe more appropriate to setthe budget at an appropriatelevel which may be revisedduring the year based on anysignificant changes to thebudget assumptions such aschanges in crude oil price.This way we will be able todistinguish real perform-ance from accidental occur-rence.

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Tax authorities must provide useful reports about their performances

... the UK tax authority(HMRC) publishes a

monthly bulletin of thelatest receipts figuresshowing historical re-ceipts for all taxes on a

monthly and annual basiswith appropriate com-mentary. Some of thecommentaries include

the quantified impact ofchanges in tax rates, ad-justments for tax credits

payable to companies, in-crease in oil price and

specific economic condi-tions whether favourable

or not.

’

‘Given that the FIRS col-lected N4.628 trillion in2011, how come the totalbudget for 2012 was re-duced by a whopping N1trillion to N3.635 trillion?Although a budget is sim-ply a plan it must be suffi-

ciently challenging todrive performance.

’

‘ Many states such asLagos collected a lot fromtax audit in past years butunfortunately they expect

this to continue. Onceyou finish plucking thelow hanging fruits, you

must be prepared toclimb the tree if you want

more.

’

‘

Beyond the 5 trillion Naira revenue collection

Once you finish plucking thelow hanging fruits, you mustbe prepared to climb the treeif you want more.

Other revenue agencies likethe Nigeria Custom Service,Postal Service, State IRS, andother agencies should also dothe same. The report by thetax authorities should con-tain information about howmuch they have paid as com-missions to various agents. Itis true that we have come along way but the fact is thatwe still have a long roadahead to travel. If we takeonly one step forward whenwe could have taken a giantstride then we lose the op-portunity to maximise ourpotential.

Further analysis shows thatcompared with the N715.4 bil-lion collected in 2011, Compa-nies Income Tax (CIT)returned N847.5 billion in2012. On the surface this ap-pears commendable butthere is no sufficient infor-mation to conclude. The ad-ditional value required fromthe tax report is in the area ofuseful information regardingthe factors or reasons for anincrease or a decrease in taxcollection. For instance, theUK tax authority (HMRC) pub-lishes a monthly bulletin ofthe latest receipts figuresshowing historical receiptsfor all taxes on a monthly andannual basis with appropri-ate commentary. Some of thecommentaries in the January2013 bulletin include thequantified impact of changesin tax rates, adjustments fortax credits payable to compa-nies, increase in oil pricewhich impacted on the re-lated tax revenue such as VAT,and specific economic condi-tions whether favourable or

not.If we put this in perspective,

the FIRS should be telling usabout the impact of changesin the tax laws, revenue for-gone due to tax waivers andother incentives granted dur-ing the year, impact of ex-change difference, VATrefunds due to taxpayers andtax credits including out-standing withholding taxcredit notes, unutilised capi-tal allowances, tax losses, andso on. The current perform-ance system within the FIRSmay encourage sub-optimalbehaviours if refunds due totaxpayers are not removedfrom collections made byeach tax office to ensure afaithful representation. The impact on the economy

of incentives should alwaysbe quantified. For instancewe should be able to statehow much of VAT income wehave given up due to exemp-tion on basic food items. VATrevenue is an indication ofeconomic activities so the in-formation is useful for plan-ning. Changes in revenue

should be explained – is it dueto industry specific issuessuch as the significant loanloss provisions which theCBN asked banks to make afew years back. Do we knowhow much we generate fromSMEs and the informal sec-tor? What we should cele-brate is increase in voluntarycompliance rather than themere fact that actual collec-tion exceeded budget.The pattern of tax collection

should also be reflected in thetax budget. In 2002, the bud-geted CIT collection was N201billion for Quarter 2 while ac-tual collection was N289 bil-lion. In Quarter 4 the budgetwas the same at N201 billionwhile the actual was N156 bil-lion. This does not appearright since majority of com-panies have December 31year-end date and will be fil-ing their returns in June, onewould expect the CIT budgetfor the second quarter to bemore than in any other quar-ter. In view of the above, the con-clusion of the FIRS regardingthe tax collection for 2012stating that - "This perform-ance reflects the Service’s un-wavering commitment to itsvision of making taxation thepivot of national develop-ment" may have to be revis-ited.

Beyond the numbers wemust also ensure that we areencouraging the right atti-tude and professional behav-iour with the tax authority.Other performance bench-marks such as how long ittakes to collect WHT creditnotes should be regularly re-ported. Self assessment orvoluntary compliance levelshould be regularly meas-ured as reflected by tax audittake as a percentage of totalcollection from year to year. Itis an indictment on the tax-man as much as it is on thetaxpayers if collections fromtax audit keep on increasingfrom one year to another.Many states such as Lagos col-lected a lot from tax audit inpast years but unfortunatelythey expect this to continue.

TheGuardianConscience, Nurtured by Truth

Oil & GasWeeklyTHE GUARDIAN, Monday, February 18, 2013 65

in association with

THE Ministry of Petroleum Resources and theNigerian National Petroleum Corporation (NNPC)

are to answer questions on the management of fundsgenerated from penalties imposed on internationaland indigenous oil companies that still flare gas intheir operations. NOGintelligence gathered that Senate has written toboth government entities asking for explanationsfrom them. According to reliable sources, theChairman, Senate Committee on Gas Resources, Mrs.Nkechi Nwogu said that the Senate was particularlyinterested in knowing how much has accrued to gov-ernment from such penalties and where the moneywas being paid to. According to the source, she said, "We just wrote to

the NNPC and the Ministry. The letters were signed onThursday last week. We want to know how much hasbeen received as dividends and where the money isbeing paid into.""As a committee, it is our responsibility to find out

because we feel the truth should be known toNigerians."The fine was introduced by the government as a way

of stopping or reducing to the barest minimum, cas-es of gas flaring in the production fields of most oilfirms, especially the International Oil Companies(IOCs), who are now forced by this action to developand work on programmes to address the menace ofgas flaring to a globally acceptable standard.The recent call by the Senate, an industry source told

NOGintelligence, may not be unconnected with therevelations last year by the Nuhu Ribadu ledPetroleum Revenue Special Task Force that none ofthe oil companies operating in Nigeria had paid anypenalty into government coffers for gas flaring sincethe beginning of the year.The source who pleaded anonymity said: "As part of

its oversight function I think the Senate is taking thebull by the horn with the decision to quiz NNPC andthe Ministry of Petroleum Resources on the where-abouts of monies expected to have been made fromfines paid by the IOCs for gas flaring. I think it is a fallout of the damning revelation by Nuhu Ribadu lastyear that the oil companies were not paying any penal-ties to the coffers of the government."But when contacted on phone as regard the develop-ment, an official of the ministry feigned ignorance ofsuch letter but however said if it is true there was noth-ing strange about getting an invitation from theSenate for clarification on a particular issue.When pressed further on the veracity of the claim by

Nuhu Ribadu that the oil companies were not payinginto the coffers of the government, he declined to com-ment.It is believed that the country suffers an annual finan-

cial loss of around US $2.5 billion as a result of gas flar-ing. The nation currently routinely flares between 1.3billion cubic feet and 1.4 billion cubic feet of gas a day.The country's annual gas flare is put to about 460 bil-lion standard cubic feet out of the 187 trillion (SCF) ofproven gas reserves and 600 trillion SCF of unprovengas reserves. Environmentalists find it particularlyworrisome that the country remains inactive over gasflaring despite the regulations.Under the Associated Gas Re-Injection Act 1979, flar-ing was prohibited under environmental regulationsas from 1st January 1984, unless a ministerial consenthas been lawfully issued and conditions are compliedwith. Under section 3 of the Act, consent could onlybe issued if the Minister was satisfied that the utiliza-tion or reinjection was not appropriate or feasible ina particular field or fields. The Minister was empow-ered to require the companies to pay a penalty for con-tinued flaring. The penalty of 2 kobo per mmscf intro-duced as from 1st January 1984 has repeatedly beenincreased. Following the unveiling of the Nigerian GasMaster Plan 2008, the National Domestic Gas Pricing& Supply Regulations were brought in, under whichnew projects have to be designed without any gas flar-ing. The penalty for flaring was also increased to $3.50

UPSTREAM NEWS

FINANCIAL NEWS

DOWNSTREAM NEWS

Remi Aiyela,Editor-in-Chief

editor@NOGintelligence.comwww.NOGintelligence.com

REGULATORY NEWS

NNPC, Petroleum Ministry In 'Hot Seat' Over Gas Flaring Fund

NNPC Approves Erha North Phase II Project

DPR Seals 23 Petrol StationsIn Abuja, Kogi

ExxonMobil's Force Majeure On SomeQua Iboe Exports

OPEC Daily Basket Price Still Riding High

THE price of Organization of the PetroleumExporting Countries (OPEC) basket of twelve

crudes stood at $114.67 a barrel on Thursday, com-pared with $114.94 the previous day, according toOPEC Secretariat calculations.Introduced on 16 June 2005, the new OPEC ReferenceBasket is currently made up of the following: SaharanBlend (Algeria), Girassol (Angola), Oriente (Ecuador),

OPEC's Lifts 2013 Demand Forecast INthe latest OPEC report, the organization lifted its

2013 oil demand growth forecast to 840,000 bar-rels a day, an increase of 80,000 barrels a day com-pared with an earlier estimate. OPEC cited signs ofeconomic recovery and colder weather for thedemand increase, with the bulk of higher consump-tion coming from China. OPEC's monthly report was "mildly supportive, fea-

turing a minor upward revision to demand," but pro-duction of 30.32 million barrels per day was still abovethe projected 2013 call on OPEC crude of 29.78 mil-lion barrels per day, said Tim Evans, energy futuresanalyst at Citi Futures, in a note. That implies a sur-plus of around 540,000 barrels per day for the yearas a whole "unless OPEC trims production further,"said Evans. The price of OPEC basket of twelve crudes rose to

$114.94 on Wednesday following the release of thereport. At the same time the previous week, the OPECbasket price stood at $112.68.

"Oil prices look to be gaining strength from thedemand-side of the equation, as OPEC raised itsdemand forecast and macroeconomic sentimentturned somewhat more upbeat," said Matthew Parry,senior oil-market analyst at the International EnergyAgency (IEA).He however warned traders to remain cautious as

ERHA North Phase II project just got a boost as theapproval for the award of three engineering, pro-

curement and construction (EPC) contracts for theproject was granted to ESSO Exploration andProduction Nigeria Limited (EEPNL), operator of OilMining Lease 133, by the Nigerian National PetroleumCorporation (NNPC).Disclosing this in a statement, the NNPC General

Manager, Public & Government Affairs, Paul Arinze,said the EPC awards represent significant milestonesin the development of Erha North Phase II and demon-strate continued cooperation between NNPC andEEPNL to grow the business and support the Nigeriangovernment in meeting national goals.He said the contracts were in line with Erha NorthPhase II project objectives, which include significantnational content contributions, to bring direct andindirect benefits to the Nigerian economy throughproject spending and employment.The multi-billion dollar project and others like it

under joint ventures with the International OilCompanies (IOCs) had earlier witnessed a review fromNNPC who took a second look at the high cost esti-mates of the projects in a bid to shore up the FederalGovernment's take from the oil fields.After being previously accused by the IOCs of drag-ging its feet, NNPC responded that it would not bestampeded into abandoning its firmly establishedprocess of contract award by what it termed calculat-ed media blackmail ostensibly by the (IOCs) and oth-er interested parties.The Corporation, in a statement noted that while theindustry concern is normally expected in the processleading to the award of major oil and gas projects, ithas an established procedure of contract and projectapproval which includes the conduct of economicanalyses to establish project viability and federal gov-ernment's take from investments in the upstream sec-

EXXON last week warned customers of supply dis-ruptions from the nation's largest oil stream, Qua

Iboe due to pipeline damage. Not long before, Shellhad announced that gas supplies to one of the world'slargest Liquefied Natural Gas, LNG terminals wouldbe delayed, also due to pipeline damage.With all the disruptions to supply experienced last

year by International Oil Companies (IOCs) this fur-ther dents the reputation as a reliable energy suppli-er at a time when demand for Nigeria's crude importsis falling in the United States and Asia has an increas-ing choice of suppliers. Nigeria's oil has been highly sought after for decadesby the United States because it is easy to refine intogasoline, but the world's biggest economy is increas-ingly serving its fuel needs domestically.Asian buyers have a far greater choice of oil produc-

ers in Africa than a few years ago, especially from WestAfrican neighbour Angola, which often providesChina with more oil than Nigeria.The latest force majeure declarations follow a raft of

problems at the end of last year when four oil majors- Shell, Exxon, Total and Eni - announced outages dueto rampant oil theft and the worst floods Nigeria hasseen in 50 years.Analysts estimate that in the last year oil theft and

pipeline vandalisation cost Nigeria up to $7 billion inrevenue out of its 2 million barrel per day crude exportbusiness.Exxon said that despite declaring the force majeure

- an inability to fulfil contracts due to unexpectedevents - on Qua Iboe exports, which can reach 400,000bpd, it continued to produce benchmark grade andthe export terminal was open. An eight day delay oncargoes is expected.Exxon only lifted a three-week long force majeure onQua Iboe in December, which was caused by floodingand oil spills, which locals said is still being cleanedup.

Oil theft is a major problem in the winding creeksand waterways of the Niger Delta, where it is easy toconceal boats and illegal refineries in the dense man-groves. Nigeria estimates around 150,000 bpd isstolen, much of it sold abroad according to commen-tators.

FRENCH oil giant, Total has reported that it lost 3per cent of its global hydrocarbon production in

2012 to the flooding that ravaged many parts of theNiger Delta and the Elgin gas leak incident in theUnited Kingdom's North Sea.In its fourth quarter and full year 2012 results, whichwas released recently, Total also stated that its hydro-carbon production in 2012 was 2,300,000 barrels ofoil equivalent per day, representing a decrease of twoper cent, compared to 2011.

Total also partly blamed the gas leak at its Ibewa gasfield in Ogba/Ndoni/Egbema Local Government Area(ONELGA) of Rivers State for its decline in productionin 2012.Focusing on the good news, Global Chief ExecutiveOfficer of Total, Mr. Christophe de Margerie notedthat in 2012, the company delivered solid perform-ance, with a net income of 12 billion euros and rein-forced its strong financial position."The environment remain favourable upstream

with Brent prices above $110 per barrel and, in thedownstream, refining margins benefited from atemporary rebound at mid-year," he said.Total however noted that it would spend more than

80 per cent of its $28 billion organic investmentbudget for 2013 on its upstream activities. The Frenchmajor said it expected to achieve production growthtargets of 3 per cent per year, on average, through to2015.Total is also targeting 3 million barrels of oil equiv-

alent per day (boepd) by 2017. According to theFrench multinational, the production growthshould be fuelled by the extension of Oil Mining Lease(OML) 58 in Nigeria as well as its 2012 start ups andits anticipated 2013 start ups in Gabon, Angola LNG,Kashagan in Kazakhstan.

THEDepartment of Petroleum Resources (DPR) hasshut about 23 petrol stations in Abuja and Kogi,

due to their alleged involvement in "sharp practices".In a media statement on Wednesday, the depart-

ment said in the course of its recent routine surveil-lance and inspection of petrol stations under itsAbuja zone, it sealed three petrol stations in BenueState.The Deputy Director, Public Affairs, Belema Osibodusaid in the statement that, Prime Power and AptroNigeria Limited were sealed for six months for thesale of adulterated diesel, whilst Mitano NigeriaLimited, was sealed for one month for under-deliv-ery of Premium Motor Spirit.An additional 20 petrol stations within Lokoja and

other parts of Kogi State found operating withoutlicences, according to her, were also sealed.She said: "Since this exercises, 10 of the petrol sta-

tions have come to regularize their licences with theDPR. The essence is to ensure that all operators arelicensed to operate within the law."Also, following a recent exercise in Idah and Ayingbain Kogi State respectively, Total Nigeria Plc, OandoPlc, Sylet Nigeria Limited, Yaman Nigeria Limited,NEGS Nigeria Limited, Alfa Allied Nigeria Limited, DuMuktar Petroleum and Asta Petroleum Limited, werefound to be engaged in product diversion, sellingabove approved price and operating withoutlicence".She added that in line with the agency's mandate tomaintain standards and eliminate sharp practices inthe downstream sector of the petroleum industry,DPR would continue to engage in the surveillance ofpetrol stations and ensure the full sanction of any ofthem found to be involved in sharp practices.

Falcon Petroleum Targets Ghana ForGas Distribution

Total Lost 3% Global Output toNigerian Flooding

FALCON Petroleum Limited, one of the leadingindigenous oil companies with a franchise to dis-

tribute natural gas to industries and bulk energyusers in Ikorodu, Lagos has concluded arrangementsto extend distribution of the product to Ghana.The Managing Director of the company, Prof JosephEzigbo made this known at an event for the pipeline'shost communities in Ikorodu. He also revealed thatthey are looking to expand to Ghana. "We are not onlyhoping to invest in Nigeria we are also looking atGhana. At the moment we are working with our part-ners in Ghana to supply gas to the West African coun-try. We are interested in building a gasification plantin Ghana to supply gas to industries in that country,"he said.Though Ghana is already getting gas from Nigeria

through the West Africa Gas pipeline Company(WAGPCo), this is not enough for the country at themoment.

On the other plans of the company, Ezigbo said:"Falcon Petroleum has grown substantially. We areconsolidating on pumping gas to industries. We arealso increasing our capacity. At the moment the com-pany is building a 12-inch gas pipeline. This willincrease the gas supply as well as gas coming intoour system. This will also increase the ability of cus-tomers to be connected to our gas supply grid.""We have gone into assembly and manufacturing

of equipment which is used in the country's oil andgas sector. We have entered into partnership with acompany in India to operate a company in Nigeriato fabricate gas stations," he explained."We hope to complete the first phase by March thisyear. We are also trying to expand to other areas ofthe country because whether we believe it or not,industries depend on gas and the industrial revolu-tion will not just be within the western region butall over the country."He also praised the Ikorodu community for provid-ing a friendly environment for the company's oper-ations.

Local Content: Expatriate Workers ToScale Biometric Exercise HurdleAS part of the local content agenda, expatriates

working in the Nigerian oil and gas industry willnow be required to undertake biometric registrationas part of the conditions they must fulfill before theirorganisations can secure expatriate quota approvalsfrom the Board.

This directive which was handed down by theNigerian Content Development and MonitoringBoard (NCDMB) is to capture details of all foreignersworking for operating and service companies inNigeria on the electronic platform - Nigerian ContentJoint Qualification System, (NOJICJQS) - being oper-ated by the Board.The Executive Secretary of Board, Ernest Nwapa, stat-ed this in Lagos at the Addax Executive BusinessSeminar on Nigerian Content disclosing that theexercise will start in the first quarter of 2013.He noted that the registration will help the board

evaluate the skills of the expatriates and confirm thatsuch skills are not available locally in the industry. Itwill also assist the board to electronically track thenumbers of expatriates in the industry, their lengthof stay, compliance with provided succession plansand expected date of exit.At the completion of the biometric registration, he

said each expatriate will get a unique card, which heor she will produce whenever the monitoring teamfrom the Board come for periodic verification.Nwapa added that Section 33 of the Niger Oil and

Gas Content Development Act (NOGICD) Act man-dates operators to apply and receive the approval ofthe Board before making any application for expa-triate quota to the Ministry of Internal Affairs or anyother agency of the Federal Government.Among other conditions, the Board requires com-

panies seeking to get expatriate quota approvals fortheir operations in the oil and gas industry to firstadvertise the positions to Nigerians through nation-al and international media outfits.Other new initiatives of the Board endorsed by its

Governing Council, which is chaired by thePetroleum Minister, Mrs. Deziani Alison-Madueke,include the planned establishment of industrialparks in every oil producing state in partnership withState governments. This will stimulate the participa-tion of the communities in the local supply chainand provide a direct platform for collaboration withoriginal equipment manufacturers (OEMs), whichare now required to manufacture a minimum pro-portion of components in Nigeria.He said the Board will collaborate with major oper-

ators, service companies and the relevant state gov-ernments to build the industrial parks, which willsupport operations of the industry and help achieveservice efficiency through shared services.

Iran Heavy (Islamic Republic of Iran), Basra Light(Iraq), Kuwait Export (Kuwait), Es Sider (Libya), BonnyLight (Nigeria), Qatar Marine (Qatar), Arab Light

THE GUARDIAN, Monday, February 18, 201366

By Charles Iyore

67THE GUARDIAN, Monday, February 18, 2013

By Ogunnaike Adesola

ACCORDING to Wikipedia, the free encyclopedia, monopolyexists when a specific person or enterprise is the only sup-

plier of a particular commodity. Monopolies are characterisedby a lack of economic competition to produce the good or serv-ice and a lack of viable substitute goods. Monopolies typicallymaximize their profit by producing fewer goods and sellingthem at higher prices than would be the case for perfect com-petition. Excess profit and profit maximization are two of themajor hallmarks of monopoly.Because monopoly is retrogressive, that is why virtually all

countries of the world have embraced competitive marketeconomy, which gives consumers alternatives, pass laws thatdiscourage monopoly and open their economies up to com-petition, regulated by the forces of demand and supply. In acompetitive market economy the consumers are the kings,rather than the dictatorship of a monopolistic enterprise.Back home, many state created monopoly companies have

crashed or moribund, in the face of competition, NITEL, Nige-ria Airways, Nigeria Railway Corporation, NEPA/PHCH just tomention a few have gone in the face of competition. We couldstill remember what we were paying to secure a NITEL 090 mo-bile line before the advent of alternatives in MTN, GLO, etc. andhow much we are paying today, to secure a GSM line. We knowhow efficient railway services are in abroad and even in Africancountries that have opened their railway business to compe-tition. One of the striking features of all countries of the world mak-ing progress, whether developing or developed is non-mo-nopoly of power by a political party. They recognised thatmonopoly of power by a political party breed corruption, in-competence, nepotism and misrule, as it is tantamount to ab-solute power and absolute power, corrupts absolutely. Theyhave viable alternative political parties and elections are notrigged by party in power. Rigging to perpetuate a party inpower is the worst corruption. It is rape and robbery, robbing

the electorate of their sovereign power, to transfer their poweralbeit temporarily, to those they want to govern them. Between 1999 and now, since we started this democratic ex-

periment, power has changed from one political party to theother, three times in the USA. In 1999 it was the DemocraticParty (Bill Clinton) that was in power, then Republican Party(George Bush) took over and four years ago, the powerchanged hands again to the Democratic Party (BarackObama). Between same period, power has changed from oneparty to the other, two times in Britain, Germany, France, Is-rael and even Ghana. Ghana is developing today and is thetoast of the whole world because of their ability to transferpower successfully from one party to the other.When a president is elected, he would make at least 3,000 ap-pointments of people who will run the government with him,virtually all of them from his party, as ministers, advisers, sen-ior special assistants, special assistant, permanent secretary,heads of departments of government, board of directors ofover 400 federal agencies. Some of the Federal Governmentagencies are much bigger than most states in terms of theavailable money, for example, NNPC, NPA, etc. If a presidenthas very good intentions but elected under a wrong party,then he is going to be held hostage by his party political job-bers. A tree under our presidential system of government cannever make a forest. Party is bigger and stronger than an in-dividual. An individual has a party manifestoes to implementand during electioneering has made commitments to a lot ofparty members.The PDP would have been in power by 2015 for 16 good years

of our life. This is almost two decades. The question for us Nige-rians is, are we Nigerians better off today than we were in 1999under military dictatorship. Nigeria crude oil was selling forless than 10 U.S. dollars in 1999 as against the consistentlymore than $100 under PDP-led governments since 1999. PDPis PDP, whether Obasanjo, Yar’Adua or Jonathan governments,they are all PDP members. Tony Anenih, Ahmadu Alli, Ba-manga Tukur, Jerry Gana, Bode George just to mention a few

have been regular faces since 1999. Nigeria has been ruled byone and same set of people since 1999 and if we keep on doingsame thing, same way, all the time, we should not expect a dif-ferent result. Should Nigeria in terms of development andprogress be queuing behind Ghana in Africa? We deserve togrow, we deserve good infrastructure, security, welfare andgovernments’ people by men of integrity, who will make thiscountry to command respect she deserves among the comityof nations.It is in the light of the above that the formation of APC is a

welcome development to at least give us Nigerians a viable al-ternative to choose from. Nigeria is on the move and with thisformation, I believe God really love this country because peo-ple are already disillusioned and almost helpless. It is a hugerelief, a positive development in our democratic experiment.Nigeria is gradually moving to a respected country in the

comity of nations where only competent and visionary peoplewill be thrown up as leaders, where politicians will not be mak-ing their children and wives emergency billionaires overnight,where probity and accountability will be the watched word.Indeed Nigeria is arriving.The over 160 million Nigerians would be the king in a com-

petitive democracy with viable alternatives for us the elec-torate to choose, in determining who govern us, like how wehave viable alternatives in MTN, Glo, Airtel and Etisalat now.We would become the beautiful bride to be wooed, not to belied to, not to be raped and killed, not to be exploited and notto be taken advantage of. The difference is ably demonstratedby the fact that MTN was charging above N10,000 for their SIMcard and told us that Nigeria was not ripe for per secondbilling before Glo came two years later and crashed the SIMcard price to one naira at a time and introduce per secondbilling immediately it launched its network. MTN was forcedto adjust their prices and billing method otherwise theywould have closed shop to the ravaging viable alternatives ofconsumers Glo.• Adesola wrote from Adesola19671993@yahoo.com

Political parties as competitive tools

OpinionPerspectives in economic management FISCAL cliff in the United States, fears of a dou-

ble dip recession in the UK, increasing un-certainty and possible exit from the EU inGreece, – global leaders are facing economicchallenges everywhere, some observers say ona scale never seen before. That may be true, butwhat matters is their ability to overcome. Management is a key leadership skill, exer-

cised as long-term strategic vision and dis-played regularly, on demand, in tacticalavoidance or confrontation. (Picking yourfights).The quality of leadership is highly influenced

by the leader’s view of issues, which in turn, de-termine the type of solution he provides for thechallenges before him. Bureaucracies in theiradvisory capacities, aid leaders in coming to in-formed judgment and views of events. They arehis palette of colours, but he must produce thefinal picture. Now let’s look at some views in the economy

and how they might be shaping events.The view from the Central BankThe Central Bank as an institution under Mal-

lam Sanusi Lamido Sanusi has been trying tomeet the objectives of inclusiveness, sustain-ability and setting the direction of preferrednational economic growth. If these objectivesare achieved, equity would have been servedand the restiveness associated with economicexclusion removed, or greatly reduced. The apex bank has been trying to achieve

these objectives by doing the following:• Reducing the number of real assets held onthe books of banks or deposit takers, to onlythose required as supporting critical assets.This is with a view to ensuring that they allo-cate aggregated savings, efficiently and are nottempted to direct them in support of the othertraded assets which they hold, and as a conse-quence manipulate asset pricing (bubbling).This should naturally keep them out of troubleand help them focus on the far more reward-ing charter pursuit, of catalysing and support-ing real sector growth in the economy.• Intervention in certain preferred areas of eco-nomic growth, hopefully in co-ordinated ef-forts with other institutions of government toimprove the efficiency and effectiveness of as-set allocation, as well as, to achieve sustainableeconomic growth (i.e. one which principally

does not limit the choices of future genera-tions). There remain, however, issues in execution,

arising mainly from inaction or the lagging ofactivities by other government institutions, aswell as, internal weaknesses in the centralbanking machinery. The anxiety of the institution, on which we

can generally say that the jury is out, is as towhether their incisions on the ailing economyare those of a surgeon or a butcher, andwhether or not, the sweet ether of fiscal indis-cipline elsewhere, will not put out the patient,long before the procedure is over.The view from the governmentThe government in its overall declarations

and aspirations also seeks to defend the pub-lic good, over narrow private interests; itshould in its actions ensure equity, inclusionand sustainable economic growth. Its actionshowever, may be out of synch with her statedobjectives if: • She creates jobs for the boys as a way ofachieving inclusion; • her borrowing could limit the choices of fu-ture generations and makes it more difficultfor them to compete; • issued debt instruments (bonds) are sopriced (without a good discovery mechanism)as to make access to domestic capital with toohigh a hurdle for profitable production, or • her activities are perceived as not transpar-ent. The government has in its pursuit of due

process in government business, the publica-tion of allocations in its budget spendingrounds, and her readiness to remain in dia-logue with interest groups, demonstrated agood measure of transparency. The size of gov-ernment, however, leaves a lot to be desired, es-pecially when output remains low. The use ofdebt instruments at both the federal and statelevels have not been sufficiently imaginative,often crowding out private businesses bor-rowing from the financial markets. These actions or inactions can send confus-

ing signals to the financial markets andweaken central bank instrument controls. Theresult is that the whole process generates mo-tion without movement in the economy.The capital markets in the mixThe capital markets should provide third

party platforms for forming capital, especially

for big ticket transactions, both for privateand public sector led economic initiatives. These opportunities, which may arise be-

tween the legislative appropriation cycles(budgeting) enable the economy to take ad-vantage of spare capacities (supply and de-mand) as they become available around theworld, in markets where we hold strong com-petitive advantage. This is one of the reasonswhy the capital market is regarded as the en-gine of growth in an economy.The capital markets however, would seem tohave been drained of all confidence, so muchso that whatever good assets are available, arebeing picked up by discerning foreign port-folio investors. This slow but steady shift of thecontrol of critical assets to foreign handscould, in crisis, undermine the economy.Lessons from elsewhere

As national economic management go,those are the critical views that will determineeconomic direction. All other views will bemostly driven by profit motives and instinctsof survival.One of the most notable economic turn-

arounds that needs close examination here isthe Thatcher changes to the UK economy. Iran into Professor Allan Walters (of blessedmemory) in the bowels of Heathrow terminal4, on one of his many trips between Britainand the U.S., all by himself and totally unas-suming. This was the man who pushed forderegulation and privatisation, which was,basically moving assets to where they wouldbe more productive rather than being in po-sitions of perpetual value decline, where theyhad to be propped-up by public funds.Tony Blair continued in the same vein, usingconcept focus groups, to achieve careful assetswaps and create a society at ease with itself.This silent revolution, helped re-build urbancapacity, and make the countryside more pro-ductive, as well as, bring about such levels ofinclusion and sudden self realisation, in a waythat the shocks of the plagues and the manyviolent revolutions could not. Elected governments have enormous pow-

ers, but leaders must have advisers who knowthe difference between a palette of hues andone of contrasting colours, if they are to offerthem useful advice for making beautiful pic-tures.What can we do now?

In the play of philosophy, politics and econom-ics, it is clear: • that Nigerian ethnic entities are not at war withthemselves, even if feelings remain raw; • that the political process is progressively dy-namic, even if far from acceptable.This means that we need to quickly improve theeconomic arrangements otherwise issues of tribeand tongue will continue to find divisive expres-sions in our polity.We must push the reset button, first by re-dis-

tributing assets in such a manner that many par-ticipants in the domestic production processhave a bargaining chip. That would require us tocarefully build urban capacity through renewal,making the countryside more productive, as wellas, aligning our small and medium-scale sectorswith established industrial demand. As it is now, many assets remain where they are

underperforming, or not performing, which maybe impeding the economy. It’s a bit like a humanmalformation with a heavy head and dispropor-tionate limbs attached in the wrong places, mak-ing movement and co-ordination, difficult if notimpossible. (There lies the rub of the co-ordinat-ing minister). If we refuse to build urban capac-ity, we would have to contend with urban sprawlsand the crime havens that come with them.If we refuse to make our countryside productive,we would continue to see increasing ruralpoverty and ease the recruitment process for pri-vate armies, by disgruntled members of our soci-ety, or destabilizing interests from elsewhere. Only a clear rural/urban agenda will develop theeconomic production linkages, good enough forthe banks to support, otherwise they will con-tinue on the easy and safe path of supporting theimportation of finished goods, in the quiet satis-faction that money is at least being circulated. The urban eddies created by that approach, will

make it difficult to price credit (interest rates) aritual which continues to ignore the need for abalance between encouraging savings and sup-porting real sector production, but instead is per-formed only to satisfy urban trade and exchange. The central bank is by such default, being forcedto serve as the reserve board of the urban elite.These issues all require multi-disciplinary ap-proach, and may not be resolved using narrowsingle subject analysis. In my view, we require an-alysts with a good understanding of free markets.• Iyore is principal partner, Dion & Associates Lim-ited.

THE GUARDIAN, Monday, February 18, 2013

military deterrent that has kept at bay, an assort-ment of both regional and extra-regional traduc-ers and detractors. At the same time of building defence capability,Iran has developed the critical infrastructure forsocio-economic development. Currently, Iranproduces 60,000 megawatts of electricity, whichnot only sufficiently covers the country but ex-tend to neighbours like Iraq, Turkey and Syria. Inan era of a intense sanction regime orchestratedby the western powers, a country of less domesticcapability would have long buckled or fallen toabysmal level of distress like Zimbabwe when shewas brought under a lesser sanction regime bythe west.

The Iranian revolutionary momentum hasfaced down a considerable amount of pressureand the recent offer of bilateral talks by the U.S.Vice President, Mr. Joe Biden on the issue of Iran’snuclear programme represent a pragmatic ac-knowledgement that Tehran can neither bebrow-beaten by threats of military strikes nor theever-tightening sanctions that are continuouslyrolled out to bludgeon the Islamic Republic.From a common sense, Iran’s military capabilityand effective deterrence constitute the solid in-frastructure of its national defence and thereforedabbling into a costly nuclear weapon, both dif-ficult to procure and even more tasking to main-tain would have been foolish. Yet the West,adorning the toga of the “international commu-nity”, persists and even escalates in its punitivesanction regime against Tehran. Mohammed El-Baradei, the Egyptian-born former director-gen-eral of the United Nations unclear watchdog(IAEA) described in his brilliant memoirs, “Theage of deception” how the West manipulated itsways to regime change in Iraq, using the phan-tom weapons of mass destruction programme

(WMD) as a pretence. It is no doubt that thepunitive sanctions targeted at Iran are largelyideological than on any intent to keep the re-gion nuclear weapons free. Ironically, the only known but undeclared nu-clear state in the region is the one soundingalarmist and paranoia about Iran’s nuclear pro-gramme. Its foremost patron, the United Stateslooks the other way while its favourite regionalclient sits atop the deadly weapon. Behind theveil of Iran’s alleged nuclear hoopla, the West in-tended to distract from Iran’s solid and land-mark achievements in several areas of humanendeavour. Iran is painted in several media out-lets of the West as a paranoid dictatorship, starv-ing and denying its people, basic rights toachieve a nuclear status state with intent todestabilise the region and the world. This is farfrom the truth.Last year, the International Monetary Fund

(IMF), a western dominated financial institutionissued a rare report on Iran, where it praised thedynamism and sustainable growth the countryhas achieved. In the past 34 years, since its Is-lamic revolution, Iran has achieved consider-able measure of political stability and hasevolved stable institution. Iran’s parliament, theMajils is one of the most vigorous and debatingchamber in the world. All political office hold-ers, including the president are routinely grilledby the parliament on all issues of governanceand administration. No other country in the re-gion has as much a rigorous democraticprocess, including credible electoral process asIran, Israel and perhaps Palestine. Egypt is thenewest but still a fragile democracy in the re-gion with a competitive political process. Yet theWest and especially the United States of Amer-ica is not willing to come to terms with Iran’s po-

litical milestone in achieving a competitive dem-ocratic process. Beyond its domestic capacity, capability and ef-

ficiency, Iran has become a key player in the re-gion and the rest of the world. In the raging Syrianconflict, fuelled by an obsession of the West to ef-fect a regime change in Damascus, Iran has putforward a five-point constructive proposal to endthe nearly two-year conflict, which includes acomprehensive national dialogue and interna-tionally supervised election. Fixated on militaryvictory to achieve regime change in Damascus,the West and its Syrian client, the so-called SyrianNational Coalition, and its terror wing, Free Syr-ian Army, has ignored Tehran’s initiative. How-ever, a new reality might be revealing itself to thepatron as a leading opposition figure was re-ported to have muted the prospects of dialogueto end the conflict. Earlier and even without much credit to its ef-

fort, Tehran played a pivotal role in ending the oc-cupation of western forces in the neighbouringIraq. Beyond its region, Iran’s global outreach hasbeen significant and naturally arouses indigna-tion from Washington and Brussels. Both inAfrica and South America, Iran’s active involve-ment and co-operation continue to meet withstrong western disapproval. However, Tehran hasno doubt notched up, a considerable diplomaticsuccess, in spite of evident obstacles. Its energeticpresident, Mr. Ahmadinejad continues to travelacross the world and has only, a few days agolanded in Cairo, Egypt to confer with PresidentMorsi and the rest of the leadership. At 34, Iran has withstood serious and existentialchallenges and has emerged through it all,stronger, well-focused, self-reliant and with a con-siderable global influence. • Onunaiju is a journalist based in Abuja.

THE Islamic Republic of Iran has not only sur-vived against all overwhelming odds, in-

cluding an imposed eight-year war and abattery of western sanctions, but has prosperedand thrived. In addition to breakthrough onhigh technology and scientific advances, it hasdeveloped a democratic process throughwhich universally acknowledged free, fair andcredible elections are held for every level of po-litical office, including the highest politicalpost, the presidency. In the region, Iran has been a key player after

its Islamic revolution that turned a once un-abashed surrogate of western imperialism to abastion of militant resistance. From Iran’s suc-cessful resistance to the regional conspiracyand western instigated counter-revolution or-chestrated through the Iraq’s imposed war, thecountry rapidly developed an indigenous de-fence industry, after it was subjected to rigor-ously implemented arms embargo. Today, Iranis a key player in the global defence industryand has built a sufficiently defence capabilitythat deters prospective aggressors, which arenot short in supply. The Israeli over-hyped self-indulged right to militarily strike at Iran, at anytime of its choice is largely restrained by Israel’sreasoned appreciation of the obvious conse-quences of such reckless action than the over-rated influence of Washington to restrain her.After all, when Washington barked at the Is-raelis for its increased settlement building inthe Palestinian West Bank, the Jewish State re-sponded by expanding the settlement. Iran, since its revolution, tapping enormouslyfrom the creative and imaginative content of Is-lamic thought has built for itself a sufficient

Iran’s story of revolution and innovation By Charles Onunaiju

tration and management go beyond interest, enthusiasm and pas-sion but expertise and professionalism, and academic training.The era of mediocrity, patronage and god-fatherism must be overand gone forever in our sports development.Sports intellectuals are dangerously ignored, sidelined and rele-gated in our national sports discourse. These intellectuals fromthe university must be allowed to be seen and heard if our sportsis to develop. Sports issues and discourse in Nigeria to a large ex-tent should be intellectually based as opposed to mainly runningcommentaries and offering opinions and views, which is the casewith enthusiasts. The time has indeed come for Nigeria to explorethe enormous resources of these sports experts, professionals andintellectuals that abound in the country to discuss and researchinto the various facet of preparation for the Olympics.Sports enthusiasts should not take the place of sports intellectu-als who should constitute the enlightened base of the society asfar as the Olympics and indeed sports generally are concerned. Theintellectuals are capable of proffering meaningful and workablesolutions to our diverse challenges in the Olympics based on theirin-depth knowledge, rigorous, critical analysis and research find-ings. Honestly speaking, well researched, intellectually deep, in-formed and erudite sports exposition is seriously lacking in oursports developmental efforts. Any nation that undermines her in-tellectual class is bound to fail in her national development andthe Olympics is no exception.The modern approach to Olympic Games training is team work

that is scientific. It entails both physical and psychological testing,training and preparation. The physical training involves an exer-cise physiologist working on and improving the physical fitnesslevel of the athletes. The fitness level includes cardio respiratoryendurance, muscular endurance, balance, strength, power andagility for optimal performance.The psychological preparation on the other hand is to assist the

athlete to cope with the constantly unstable environment of aprestigious, stressful intensely competitive and big event such asthe Olympics. The psychological training and preparation can beprovided by an exercise (sports) psychologist (not a pure psychol-ogist) who is to work on the psyche of the athletes. This will makethe athletes cope and adapt easily to the constantly changingOlympic games environment. No matter the physical skill, abilityand capability of the athlete or the competence of the coach, theathlete will not be able to fulfill his/her potential if he or she psy-chologically ill-prepared. This is because what is in the head of theathlete goes a long way in influencing his/her performance.The scientific training also involves nutritionist, medical doctors,physiotherapist, nurses and professionally and academically train-ing sports administrators. Adequate and balanced diet is essentialin the training and preparation of Olympic athletes for optimalperformance. Good nutrition helps in body growth, maintenance,repair, reproduction and energy production. Consequently, a nu-tritionist must be part of the training and preparation for theOlympics.

Selection of athletes to represent Nigeria at the Olympics isequally important. The selection should not be based on thequota system. The best, irrespective of religion or tribe, should beselected purely on merit. Since the nation is not going on a jam-boree, those selected must meet the minimum Olympics quali-fying performance standard before sending them out toparticipate in the games. Considering the fact that a hugeamount of money is being spent on executing the Olympics, Nige-ria cannot afford to continue sending athletes to the games with-out commensurate success. Olympic medal hopefuls must begiven competitive opportunities and exposure. This is achievablethrough financing of national and international sports competi-tions. The financing will be in the form of making money avail-able for travel and accommodation allowances. With this, theathletes are guaranteed a long sustained training as well as com-petitive exposure.Athletes should also be financed while training for and partici-

pating in international competitions. This will allow the Olympicmedal hopefuls to continue with their careers while training in-tensively. On the other hand, student athletes with medal po-tential should be given funds for extra coaching and schoolingexpenses.Apart from funds, student athletes could be given scholarships

and opportunity to take part in competitions. The scholarship isespecially essential for our foreign-based student athletes to havethe opportunity of continuing with their academic work. In ad-dition, the scholarship will help curb the practice whereby ourforeign-based medal potential Olympic athletes’ running acrossEurope and America trying to make money. Our sports should bedeveloped and centered on the schools especially the tertiary in-stitutions. As students, they are still young, energetic, strong, mo-tivated and above all committed to sports.Most national coaches in Nigeria are not well trained. Active andsuccessful participation in sports does not qualify one as a pro-fessional coach. Coaching has become highly technical, scientific,academic and professional. It has therefore become imperativethat our Olympic games coaches must be properly trained toachieve the desired results. As a matter of policy, they should pos-sess the Grade A coaching licence to handle Olympic athletes.They should also possess special knowledge and competence incounseling to guarantee the understanding of athletes, as a wayof dealing effectively with them. There is therefore the need to im-prove our Olympic coaches through attendance at advancedcoaching and refresher courses both locally and internationallyto enhance their technical competence and sports knowledge.Also important is our preparation for the Olympics is that thereshould be no government delegation. This delegation is a dis-traction to the athletes and should be abolished. There is no short cut to winning medals at the Olympics but

hard work, hard cash, early preparation and little prayer.• Onifade is a Professor of Sports Administration and Psychology, La-gos State University, Ojo, Lagos.

THE poor performance of Nigeria in the last Olympics has madeit imperative to examine and re-examine how best to train and

prepare our athletes for the games.It is no longer enough to participate only in the Olympics but

win medals in an honourable manner. This is because success inthe Olympics is a veritable way by which a country can assert andrebrand itself. At the London 2012 Olympics, Nigeria ended thegames with no medals, following a similar dismal performance atthe Moscow ’80, Seoul ’88 and Beijing 2000 Olympics.The so-called giant of Africa failed woefully yet smaller African

nations like Ethiopia, Kenya and Uganda made Africa proud at theLondon games. Indeed, a decent performance at the Olympicsgames is not a function of a large population but of thorough, ef-ficient, disciplined and scientific preparation of athletes. What’smore, athletes that are Nigerians won medals at the Olympicgames for other countries like U.S.A, U.K. and Canada because theyhave changed their nationality. This goes to show that we are def-initely doing something wrong as far as our Olympic gamespreparation is concerned. In Nigeria’s 60 years of Olympic games participation since we

debuted at the 1952 Helsinki, Finland games, the country has wononly three Gold medals. This is definitely not desirable. We needto get our act together as to how best to prepare for the Olympicgames.Success at the Olympic games in terms of medals won or bril-

liance of efforts would come not by fluke, sheer luck, mere chanceor the hasty so-called intensive training and fire brigade plan-ning. The success will only come through hard work, adequatepreparation, meticulous, scientific planning and training.Many reasons have been given for the country’s poor perform-

ance at the London 2012 Olympics. They range from inadequatepreparation, abandonment of school sports programmes to in-adequate sports facilities. Others are poor funding, poor coach-ing and lack of adequate teaching of physical education inschools to lay a good foundation for the acquisition of sportsskills. Indeed, some of these are the actual factors militatingagainst our good outing in the Olympics.There is no doubt that sports talents abound in this country butwe have not been harnessing them right. It takes an average ofabout 3-4 years of intensive, consistent, committed and motivatedtraining to nurture and prepare an Olympic gold medalist. It willserve us no good if we only gather our athletes together a coupleof weeks to the games in the name of preparation. That way, a verypoor outing is guaranteed.Leaders in sports should be those with enviable achievements

and crack track record in sports. The administrators should bethose with proven integrity and clout that are genuinely inter-ested in sports. In addition, there is the need for requisite trainingin and deep knowledge of sports for these professionals. Theymust also possess university degrees in sports. Sports adminis-

Olympics: Beyond the release of fundsBy Ademola Onifade

Opinion68

Media69THE GUARDIAN, Monday, February 18, 2013

Issue

LAST Wednesday, Nigeria joined the rest of theworld to celebrate the second anniversary of

World Radio Day. While the Secretary General ofthe United Nations, Ban Ki-moon, emphasised inhis commemoration message the need to use theoccasion to “tune the world to the frequency ofpeace, development and human rights for all,” theDirector General of UNESCO, Irina Bokova, laudedthe pervasiveness, affordability and accessibilityprofile of radio, essentially as a medium “that cancarry any message to any place at any time – evenwithout electricity.”In Nigeria however, the anniversary was explored

to strengthen the campaign for the establishmentof community radio across the country.

Specifically, the Nigeria Community RadioCoalition (NCRC) and its partners – the Institute forMedia and Society (IMS), Media Rights Agenda(MRA) and the International Press Centre (IPC) –used the occasion to call on the FederalGovernment and the National Assembly to facili-tate an enabling environment for unfettered radiobroadcasting in the country as a way of strength-ening democratic development and people’s par-ticipation in governance.

In a statement jointly signed by Akin Akingbulufor NCRC, Edetaen Ojo for MRA, Lanre Arogundadefor IPC and Lere Oyeniyi for IMS, government’sattention was drawn to the continued delay in theoperationalisation of community radio, the lack ofpublic involvement in the process leading to theWhite Paper on the Report of the PresidentialAdvisory Committee on Transition from Analogueto Digital Broadcasting, and the absence of consti-tutional backing for independent broadcasting inNigeria.

“It is now almost three years since October 2010,when President Goodluck Jonathan announced apresidential approval for the licensing of commu-nity radio stations across the country and accord-ingly delegated his powers under the Constitutionto issue broadcast licences to the NationalBroadcasting Commission (NBC), the statutoryregulator for the broadcast sector. 

“It is worrisome that three years on, there is stillno indication of the implementation of thisimportant directive despite the apparent impor-tance of community radio in giving voice to themasses, including the rural and urban poor, toparticipate in governance and contribute to devel-opmental efforts of governments in their commu-nities,” the groups decried.

The UN scribe noted further: “Since its inventionmore than 100 years ago, radio has sparked theimagination, opened doors for change, and servedas a channel for life-saving information. Radioentertains, educates and informs. It promotesdemocratic expression and influences ideas.

“From short-wave to FM to satellite transmission– radio connects people wherever they are. In con-flict situations and times of crisis, radio is a lifelinefor vulnerable communities.

“Radio is both valuable and cost-effective.  Fromday one, the United Nations has been using radioto reach the peoples of the world. UN Radio shedslight on all issues on the United Nations agenda –from sustainable development, to the protectionof children, to peacekeeping and conflict preven-tion. “We are proud of our rich history of radio produc-

tion in many languages, and the innovative wayswe use radio to inform and serve the world,” Ki-moon asserted.

On her part, Bokova was also enthralled by thetransformation radio has impacted on “the waywe communicate” in addition to remaining at theforefront of the 21st century.

She traced the genesis of its declaration: “On 18December, 2012, the United Nations GeneralAssembly endorsed the 2011 resolution adopted bythe UNESCO General Conference, proclaiming 13February as World Radio Day, the day UnitedNations Radio was established in 1946.”

The birth of radio in the 19th century, Bokova

stressed, “ushered in the era of modern communi-cation. The world has changed dramatically sincethen, but radio has hardly aged a day. It remainswidely accessible, relatively cheap and very simpleto use. It is still the medium that can carry anymessage to any place at any time – even withoutelectricity. In situations of conflict and natural dis-aster, shortwave radio provides a lifeline of infor-mation that can save lives.”

UNESCO Chief also underscored the adaptabilityof radio, embracing “the digital revolution toexpand its power and reach. Across the world, thecost of broadcasting is decreasing and the num-ber of radio stations is increasing. Citizen journal-ists and community media are using online radiostations to give voices to those who are rarelyheard. More than ever, radio remains a force forsocial change, by sharing knowledge and provid-ing a platform for inclusive debate.“In a world changing quickly, UNESCO is commit-

ted to harnessing the full power of radio to buildbridges of understanding between peoples, toshare information as widely as possible and todeepen respect for human rights and fundamen-tal freedoms, especially freedom of expression.This is essential for good governance, open soci-eties and sustainable development, Bokova sub-mitted.

The day came into being on November 3, 2011,when the 36th General Conference of UNESCOapproved the proclamation that February 13 ofevery year should be observed as World RadioDay,  following a proposal at the session 187 ofUNESCO’s Executive Board in September 2011.   

While the NCRC and its partners pledged to con-tinue to identify with the aspirations, which moti-vated the proclamation of February 13 as WorldRadio Day, to raise awareness about the impor-tance of radio, facilitate access to informationthrough radio and enhance networking amongbroadcasters,” they pointedly asked PresidentJonathan “to take urgent steps to ensure that rele-

vant government institutions and agencies giveeffect to his directive while the NBC should with-out further delay proceed with the issuance ofcommunity radio licenses.”

On the digital transition, they noted: “It hascome to our attention that the FederalGovernment has issued a White Paper on thereport of the 22-member Presidential AdvisoryCommittee on Transition from Analogue toDigital Broadcasting in Nigeria. The committeewas set up and inaugurated on October 13, 2008and submitted its report in June 2009.

“It should be recalled that the late PresidentUmaru Yar’Adua had, as far back as December2007, approved the transition from analogue todigital terrestrial broadcasting in Nigeria, withan effective date of June 17, 2012, in line with theInternational Telecommunications Union (ITU)resolutions on the issue.  It was to give effect tothis that the Presidential Advisory Committee onTransition from Analogue to DigitalBroadcasting in Nigeria was set up and inaugu-rated on October 13, 2008. 

“We observe however that the FederalGovernment has not made public the WhitePaper on the report although it has proceeded toset up an implementation committee. “The report of the Committee itself was not sub-

jected to public discussions by critical stakehold-ers. It is our firm view that this is not the bestapproach in dealing with a matter of such publicimportance in a democratic setting. In the cir-cumstance, we hereby call on the government tomake the White Paper public and open it up fordiscussions and consultations among stakehold-ers in line with democratic norms and practices.”

Canvassing Constitutional backing for what thegroups tagged ‘Independent Broadcasting’, theyasserted that the on-going review of the 1999 con-stitution should be explored “to strengthen therole of the broadcast sector in national develop-ment.” 

The current regulatory environment for broad-casting in Nigeria, they argued, “continues to fallfar short of international standards, particularlywith regards to the lack of independence of theregulator.”

They therefore urged the National Assembly andother stakeholders “to take advantage of the con-stitution review process by supporting theamendments proposed by the Media Network onthe Review of the 1999 Constitution comprisingthe IMS, MRA, IPC, and other bodies including theNigeria Union of Journalists (NUJ), the NigerianGuild of Editors (NGE), the Nigeria Association ofWomen Journalists (NAWOJ). 

The proposed amendments include the need forthe regulatory body in charge of broadcasting tobe listed as one of the Federal Executive Bodiesrecognised in Section 153 and under the ThirdSchedule to the 1999 Constitution.

“This is due to the critical role the broadcast reg-ulator plays as an essential tool in aiding the devel-opment of the country’s democracy throughensuring the effective development and regula-tion of the nation’s airwaves, which remains themost critical source of information for the gener-ality of the citizenry. Making the broadcast regula-tor one of the Federal Executive Bodies in theConstitution would also guarantee adequatefunding for its operations,” the groups explained.

And in order to ensure that the broadcast regula-tor is fully independent of government, it is sub-mitted further that, “all members of its governingbody should be appointed by the NationalAssembly after open public hearings, and theyshould be accountable to the National Assembly.

“The overbearing presence of government offi-cials in the governing body of the broadcast regu-lator should be curtailed by removing representa-tion for the State Security Service (SSS) and theFederal Ministry of Information from the mem-bership of its governing body.

“The process of appointing representatives of thedifferent interests groups that constitute the gov-erning body of the broadcast regulator shouldinclude a requirement for consultations to beheld with the various stakeholders in each of thenamed sub-sectors of the Nigerian society whenselecting their representatives for appointment tothe governing body.”

By Kabir Alabi Garba

Global focus on peace, local campaign for community radio

World Radio Day…

Stakeholders in the media used the occasion of the World Radio Day to call on theFederal Government and the National Assembly to facilitate an enabling environmentfor unfettered radio broadcasting in the country as a way of strengthening democrat-ic development and people’s participation in governance.

Ban Ki-moon DG of UNESCO, Irina Bokova President Jonathan

Information Minister, Labaran Maku Akin Akingbulu of NCRC DG of NBC, Yomi Bolarinwa

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74

SportsTHE GUARDIAN, Monday, February 18, 2013

I have 50 players in the Eagles

AT every given opportunity SuperEagles coach will readily tell

anyone who cares to  listen thatNigeria is a great country thatshould be at the forefront of everyevent, especially sports. The coach,who as a player was the captain ofthe senior national team for 14years, is of the opinion that giventhe right environment and oppor-tunity, Nigerians would rule everycompetition they go into no matterthe rating of the opposition.

Keshi has every right to flaunt

Nigeria’s potential and the inher-ent greatness because he just led agroup of young Nigerians to winthe African Nations Cup in SouthAfrica, a feat his compatriotsthought was impossible evenbefore the first ball was kicked.

Now, savouring the euphoria ofhis achievement, Keshi says thatthe battle is just half won.According to the former Togo and

Mali national teams’ coach,Nigeria’s victory in South Africa isjust the beginning of the country’s

Since he led Nigeria to win its third African Nations Cup title in the just concluded South Africa2013 edition of the competition, Stephen Okechukwu Keshi has been the toast of all Nigerians,including those critics, who never gave his team any chance of success at the continental fiesta. Now a Commander Order of the Niger (CON), a honour bestowed on him by the Federal

Government, Keshi has already started looking ahead to the challenges ahead, including the FIFAConfederation Cup, which holds in June in Brazil, the World Cup qualifier against Kenya and theAfrican Nations Championship qualifier against perennial foes, Cote d’Ivoire, which also comesup in June, among other competitions. Fielding questions from journalists during the TomTom Editor’s Round Table held over the week-

end in Lagos, Keshi talked about the just concluded Nations Cup and his plans for the future ofthe Super Eagles. CHRISTIAN OKPARA reports.

march to the summit of worldfootball.

Keshi said: “We are still buildingthe team and by God’s grace wewill get the team of our dreamvery soon.”

He added: “After the last game inSouth Africa, I sat down with mycoaches to list some other playerswe need to give the chance tocome into the squad.“I have a list of 50 players I can call

upon at any time, but we needpatience and support from every-

body. Martins, Osaze, Anichebeand others are still relevant in theteam; they will get their chance toplay unless they choose to stayaway.”

The coach went to South Africawith 17 debutants in a team of 23players, a decision, which, accord-ing to him, has been justified bythe team’s achievement at theNations Cup.

Going forward, Keshi said hewould look for more young play-ers, no matter where they arebased, to fortify his team.

“I made my debut for the Eaglesin 1979 in Rabat against Morocco. Iwas then 17 years and somemonths old. It was a friendly whenwe were preparing for the 1980

Nations Cup. I had some youngcolleagues like Sylvanus Okpalla,Henry Nwosu, among others. Wewere just fresh from school.“So, it doesn’t matter how old you

are. It depends on your intelli-gence. If you are good enough toplay for me, I will pick you; it is assimple as that.

“I wasn’t afraid to go to the com-petition with 17 debutants,because I looked at what theycould bring to the team.“When I was in Togo, I used young

players, some didn’t even haveclubs, but I gave them that selfbelief. I didn’t look at the players’pedigree; rather I took players thatcould fight for the team and workfor the collective good. That is

I couldn’t understand how a team I captained for 14 yearshad suddenly become so weak that people will start callingthe players super chicken. But I must tell you the boys wereawesome. They rose to the challenge because they werehurt; they were angry and they wanted to prove the doubterswrong

Keshi. PHOTO: FEMI ADEBESIN-KUTI.

75THE GUARDIAN, Monday, February 18, 2013

what I am doing with the Eagles.”The coach believes Nigeria has thepotential to become truly greatagain in football if the right ele-ments get together to work for thecollective good. To him, the SuperEagles would only succeed whenthe football federation, the govern-ment and the fans come togetherto support the team.He also says the players must beready to work hard to maintain themomentum “because hard work isthe basic ingredient for success.” According to Keshi, “The players

must realise that there is no senti-ment in football. You either workhard to succeed or stay by the sideand watch others take the glory.“I am lucky I had an awesome

bunch of players to choose from inSouth Africa. That was why whenFegor Ogude was suspended, wegave Onazi the chance and heimpressed so much that we couldno longer drop him. “The same thing happened whenYobo was injured and we gaveOmeruo the chance. We have sucha good squad such that when wedecided to play Mba, instead ofIgiebor, the boy played so well thatwe could not drop him. That wasthe same thing with Emenike andIkechukwu Uche. It is good for usthat we have players that can stepin and prove their worth.”Reminiscing on the team’s cam-

paign at the 2013 Nations Cup,Keshi describes the Super Eagles’last group game against Ethiopiaas the team’s most difficult gamein South Africa.“The game against Cote d’Ivoire

was purely tactical, with a lot ofdiscipline required to subduethem. But we were faced with thechoice of either beating Ethiopiaor leaving the competition.“We were cautious in the game

and only relaxed when we got thefirst goal late in the game.“After the group games, we wentback to the drawing board to cor-rect the lapses we noticed in thematches. That was why we movedforward and got better as the com-petition progressed.”Keshi says the technical crew

spent three days to plan the strate-gy for the Cote d’Ivoire game,adding: “We analysed their playersand their team and found out thateven though they had good play-ers, they did not play like a team. “So, we fashioned a plan that

ensured that Kalou, Yaya Toureand Gervinho had no time on theball. That was why they could notget the ball to Drogba, and as suchthe great Drogba became uselessin the game.” Keshi also disclosed that the

‘Super Chicken’ moniker given tothe team also gingered the playersto prove they were better thanwhat people thought.He said: “I couldn’t understand

how a team I captained for 14 yearshas suddenly become so weak thatpeople will start calling the playerssuper chicken. But I must tell youthe boys were awesome. They roseto the challenge because they werehurt; they were angry and theywanted to prove the doubterswrong.“Another factor was the attitude

of some of our officials before theCote d’Ivoire game. Nobodybelieved in us even to the extentthat the team secretaryapproached the players to find outtheir destination after the Coted’Ivoire game, because he wantedto book flights for them.“He thought the Cote d’Ivoire

game would be our last and hewanted to book flights for theteam out of South Africa. Thatangered the players and they toldhim to leave them alone, becausethey were sure of beating Coted’Ivoire.” After beating Cote d’Ivoire, Keshibecame confident that no other

team could stop the Super Eaglesfrom winning the championship.But he admitted that he was a bitapprehensive when first roundfoes, Burkina Faso, defeated Ghanato qualify for the final againstNigeria.“We played the same team and

conceded a last minute equaliser,so we were cautious, but still confi-dent. “When it was a few minutes to theend of the game and we were lead-ing by 1-0, I was tensed, but I toldthe boys that it was almost overand they should try to kill thegame. “After the game, we were over-

whelmed with emotions when itdawned on us that we haveachieved what our people havebeen clamouring for. “But I must say that we celebratedthe victory over Cote d’Ivoire as if itwas the final. In the last game wecelebrated too, but it was not asemotional as the time we beat Coted’Ivoire. We went into the gameagainst Burkina Faso confidentthat we would beat them.”The Super Eagles has the penchantof conceding late goals duringimportant matches, a habit thatnearly cost it dearly during theNations Cup in South Africa. This isone of the issues Keshi has prom-ised to tackle when the team recon-venes.According to the coach: “When

you start a game, the first five min-utes is crucial. You have to be fullyconcentrated or your opponentwill damage you in that period.“Five minutes to the end of the

first half is also very crucialbecause it is close to the break peri-od and there is the tendency torelax, so also is the first five min-utes in the second half. We conced-ed a goal against Cote d’Ivoire inthe first five minutes of the secondhalf because we lost concentration.“It is something we are working

on. It has to do with mental disci-pline; if you are disciplined, youwill not concede goals in theseperiods because you are alert.”Speaking on the African Nations

Championship (CHAN), for whichNigeria has not qualified since itsinception, Keshi says the problemis with the official attitude to thecompetition. The competition is for home-

based players and Keshi believesNigeria has the players to domi-nate the championship.He added: “I think we have not

qualified for CHAN since its incep-tion because we have not taken itseriously. We need to identify thehome-based players and trainthem to get ready for the chal-lenges. We will ensure we preparewell for our qualifier against Coted’Ivoire before we go to Brazil forthe Confederations Cup.”Keshi expects every Nigerian to

support his team at all timesbecause that is the only way tobuild confidence in the team.“I cannot assure Nigerians that wewill not lose any game, but I wantto assure them that we will be pre-pared for every game. We will winsome and lose some, but we areprepared to learn from everygame,” he surmised.

of my dream, says KeshiI made my debut for the Eagles in 1979 in Rabat against Morocco.I was then 17 years and some months old. It was a friendly whenwe were preparing for the 1980 Nations Cup. I had some youngcolleagues like Sylvanus Okpalla, Henry Nwosu, among others.We were just fresh from school. So, it doesn’t matter how old youare. It depends on your intelligence. If you are good enough toplay for me I will pick you; it is as simple as that.

Another factor was the attitude of some of our officials beforethe Cote d’Ivoire game. Nobody believed in us even to the extentthat the team secretary approached the players to find out theirdestination after the Cote d’Ivoire game because he wanted tobook flights for them. He thought the Cote d’Ivoire game wouldbe our last and he wanted to book flights for the team out ofSouth Africa. That angered the players and they told him to leavethem alone because they were sure of beating Cote d’Ivoire.” Super Eagles stars, Azubuike Egwuekwe (left), Sunday Mba, Chigozie Agbim, Godfrey Oboabona and Fegor Ogude when Tom Tom hosted

the victorious team in Lagos…over the weekend. PHOTO: FEMI ADEBESIN-KUTI.

Elderson Echiejile (left), Godfrey Oboabona and Kenneth Omeruo (right) try to stop Cote d’Ivoire’s Didier Drogba when the Super Eaglesconfronted the Elephants in the quarterfinal of the just concluded African Nations Cup. PHOTO: AFP.

76 THE GUARDIAN, Monday, February 18, 2013

Ochei Wheelchair basketballchampionship dunks off todayTHE second edition of the

Sir Victor OcheiWheelchair BasketballChampionship will dunk offtoday at the NationalStadium, Lagos with threeWest African countries inattendance, will end on the23 of this month.The three countries, accord-

ing to the technical director,Wheelchair BasketballFederation of Nigeria,(WBFN), Tamuna Adoki areTogo, Benin Republic andGhana.

While speaking on theforthcoming championship,

which is expected to attractwheelchair Basketball teamsfrom all states of the federa-tion, Adoki disclosed thatthe foreign participatingcountries were expected toarrive yesterday while thepre-match meeting for allteams hold Monday at theIndoor Sports Hall.

The WBFN technical direc-tor stated that the followingstates have confirmed theirparticipation at the champi-onship, which attracts N5million prize money.   Lagos,Oyo, Ondo, Delta, Ogun,Bayelsa, Edo, Rivers, Imo,Kwara, Niger  and Kaduna,

Total Promotionsdeniesdemanding N1.5b for NPL

Delta terminates contract for Stephen Keshi Stadium

BROADCAST partner of theNigeria Premier League

(NPL), Total Promotions, hasdenied demanding N1.5 bil-lion from Globacom as condi-tion for relinquishing theNigeria Premier League (NPL)title right to the telecommu-nications outfit.

In a release from TotalPromotions signed by Funke Akinrele, the companystressed that it demandedfrom Glo N250 million for anoutright buy-out as the custo-dian of the title right in thelast two years.

“We did not demand N1.5million from Globacom,”Akindele said in the release.

“What we told Glo is thatTotal Promotions would havemade N1.5 billion in televi-sion activation if MTN hadbeen allowed to sponsor theleague. How they arrived atthat N1.5 billion figure is partof their agenda to call dog abad name so that they canhang it. But it will neverwork. Nigerians are tooenlightened to be hood-winked by the Interim body.“We are not a charity organi-

DELTA State governmenthas terminated the con-

tract for the Asaba TownshipStadium, which has beennamed after Super Eagles’

zation. We got the title rightbecause we are in businessand we won’t have to fold upbecause we demanded for abuy-out, which is the normeverywhere in the world. Wewant to stress that at no timedid Total Promotionsdemand for N1.5 billion, nei-ther did we go back on ourconcession to pass the TitleRight to Glo. But the snag wasthe inability to work out anagreeable term.”

Meanwhile, the clubs own-ers have rejected the attemptby the Interim body torename the NPL as NigeriaProfessional League whilealso kicking against anabridged 2012/13 league sea-son.

The Clubs owners met onFriday and threatened to boy-cott any abridged version ofthe league in whatever nameit may be called.

The season is expected totake off on March 9 with theoriental battle betweenRangers of Enugu andEnyimba of Aba as the starmatch.

Chelsea stroll in replay, Aguero double lifts Man City

Leeds United’s English defender, Lee Peltier (left) vies with Manchester City’s Argentine striker, Carlos Tevez duringthe fifth round English FA Cup match at the Etihad Stadium in Manchester yesterday. PHOTO: AFP

THE Premier League’s big-hitters restored some nor-

mality to the FA Cup yester-day with holders Chelseacrushing third tier Brentford4-0 in a fourth round replaywhile Manchester City alsodismissed Leeds United 4-0 ina fifth round tie.

Midfielder Frank Lampardscored his 199th goal forChelsea who put four second-half goals past Brentford atStamford Bridge. Juan Mata,Oscar and captain John Terryalso netted as securedChelsea a fifth round clash atChampionship (second divi-

sion) Middlesbrough onFebruary 27.

Argentine Sergio Agueroscored twice for 2011 winnersManchester City who easedinto the quarter-finals with aconfident display that wasthe complete opposite fromtheir abject surrender in a 3-1Premier League defeat atSouthampton last weekend.

Yaya Toure’s superblyworked early goal set City ontheir way againstChampionship side Leedsand Aguero added a secondfrom the penalty spot. CarlosTevez bundled in a third soon

Tom Tom redeems N13.4mpromise to Super Eagles

MEMBERS of the SuperEagles were all smiles on

Saturday when officials ofCadbury Plc., makers of TomTom, the official candy of thenational teams, presentedcheques totaling N13.4 mil-lion to the team as rewardfor their African Nations Cupvictory.

The Tom Tom largesseincludes $10,000 to the MostValuable Player (MVP),

$12,000 for the team’s shotson target and N10 million forwinning the competition.

At a reception organised byTomTom in honour of theAfrican champions in Lagos,team coach, Stephen Keshisaid, “It is appropriate tothank TomTom for all it hasbeen doing for Nigerian foot-ball. Its effort has been agreat motivation for us. If wehave brands like TomTombehind us, our football will

after halftime and Agueroadded a fourth after 74 min-utes.

Manchester United hostReading at Old Traffordtoday.Three second-tier sidesreached the last eight onSaturday, includingBlackburn Rovers whostunned 10-times winnersArsenal with a 1-0 victory atthe Emirates.Everton, sixth in the Premier

League, were taken to areplay after conceding a stop-page-time goal in a 2-2 drawat third-tier strugglers

By Adeyinka Adedipe

Lobi Stars’ Ezekiel Bassey and Tony Okpotu modeling the team’s new jerseysduring the unveiling of the new attires by OWU Sportswear... at the weekend.

Managing Director/CEO, Cadbury West Africa, Emil Moskofian, presenting a cheque of N10 million to Super Eagles’Chief Coach, Stephen Keshi, as appreciation for the team’s victorious outing during the Nations’ Cup at TomTom’sreception for the Super Eagles in Lagos at the weekend. PHOTO: FEMI ADEBESIN-KUTI

adding that, ‘’there is roomfor more states to register forthe championship today inorder to encourage moreparticipation of states andclubs and I am optimisticthat many more will regis-ter’’.

The winner of the champi-onship will go home with N2million, while the secondplace team gets N1.5 millionand the third placed teampocket N1million while theremaining N500,000 wouldbe shared among the bestbehaved team, best player,best dressed team, amongothers.

keep moving forward and wewill continue to makeNigerians proud.

“Wherever we go, TomTomwill be there because weknow now that it cares forour football, the Super Eaglesand their performance. Bythe grace of God, my teamwill go places.”

Also speaking at the recep-tion, the General Secretary ofthe Nigeria FootballFederation (NFF), BarristerMusa Ahmadu, applaudedTomTom for the support ithas been giving the nationalteams.

“They have stuck with thenational teams, particularlythe Super Eagles throughthick and thin, even when alot of people didn’t believethey would deliver. Theyhave also stuck with the NFFand they have soothed ournerves and make us tobreathe better. We appreci-ate the sponsorship relation-ship between Cadbury’sTomTom and NFF and Ibelieve it will go higher fromhere,” Ahmadu said.

Managing Director ofCadbury West Africa, EmilMoskofian, while presentingthe team with the prizes,commended it for makingover 170 million Nigeriansproud with their achieve-ment, and assured the teamof TomTom’s continuoussupport.

By Christian Okpara

coach, Stephen Keshi.Governor Emmanuel

Uduaghan, who announcedthis at the Asaba MannerPrayer and Anointing Service,

said that he had directed thatthe contract be re-awardedand completed within sixmonths time.

Uduaghan explained thatthe contract was terminatedto ensure the speedy comple-tion of the stadium to avoidthe project becoming a whiteelephant one.

The governor promised thathe would complete all on-going projects and gaveassurance that there wouldbe no abandoned projects inthe state before he handedover in 2015.  

His words: “l have told Godthat l am not going to leaveany abandoned project inthis state.  We have been hav-ing challenges with the con-tractors in charge of this sta-dium. It was about becomingan abandoned project butthis will not happen, becauseit will be completed soon.”

He invited the founder ofOur Daily Manna Devotional,who officiated at the AsabaManna Prayer and AnointingService, Dr. ChrisKwakpovwe, to pray againstthe spiritual inhibitionstalling the progress of theproject.

Uduaghan regretted that alot of people were hingingthe slow progress of work atthe stadium on what theycalled the cemetery issueattached to the location ofthe project and thereforeenjoined the man of God toinvoke the spirit of God onthe stadium site to neutraliseany negative spiritual inhibi-tion.

“ It is impossible to pleaseeverybody. I am not perfect, lhave my weaknesses andinadequacies. So instead ofcriticising me pray to God togive me the capacity to dowhat is proper and good forthe generality of Deltans sothat we can move our state

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Monday, February 18, 2013TheGuardianConscience, Nurtured by Truth

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GAINING political autonomy or inde-pendence is expensive, as can be empir-

ically extracted from the pages of world his-tory. In every sense, history of the world is ahistory of wars and conflicts fought byhumanity for political freedom and againstpolitical oppression and subjugation.In recent times, the wars of freedom

fought respectively in the south-westernSudanese region of Darfur (now officiallypart of the Republic of Southern Sudan),and Libya provide useful insight into thereal cost (value) of freedom - for a people tohave their political destiny in their ownhands. The two conflicts are typical exam-ples of what it can cost to engage in bel-ligerence to secure political emancipation.The Darfur crisis: For a better part of its his-tory as a sovereign state, the North Africancountry, Sudan, was engulfed in civil strife.For this reason, when the people of Darfurrevolted against the central government in2003, the international community read itas another round of the ceaseless meta-morphosis of violence for which Sudan wasknown. Little did the world know then thatthe country was on the last lap of its fatefuljourney to bifurcation.The basis of the uprising, according to theinsurgents, was the “long years of neglectof Darfur,” which is home to a substantialshare of that country’s vaults of oil wealth.The Darfur people were not allowed fullparticipation in the affairs of their country,under the control of the Islamic north inKhartoum. Darfur was denied all forms ofmeaningful development as the oil basketof Sudan.The revolt was to set afoot a grievous eth-nic cleansing agenda orchestrated by thegovernment of President Omar al-Bashir.The armed Arab militants, who were gov-ernment-sponsored, known locally asJanjaweeds (which literally means“demons on horsebacks”) engaged in mas-sive killing, maiming and assault onwomen of Darfur. Officially describing theDarfur genocide in 2008, the UNHCR saidsome 350,000 Darfur men, women andchildren had been killed in the conflict. Thecommission also drew the world’s atten-tion to the over 2.5 million people who hadbeen displaced at the height of the crisis.Aerial footages on cable news showed therampaging Janjaweeds setting housesablaze, after the Sudanese Air Force hadstrafed villages and towns. Darfur was ablot on a continent constantly in search ofpeace and stability to consolidate the gainsmade in democratic governance, educa-tion and the MDGs. The mission of the Arab-controlled government was to ultimatelyIslamise Darfur communities, which aremainly Christians, by wiping out all males,including day-old male babies. To accom-plish this mission, the Janjaweeds threwmale babies into burning houses in com-munities they had sacked, but sparedfemale babies in the hope of raising a newgeneration of Arab children in Darfur.However, after so much bloodshed and

destruction, Khartoum and the dissident

for granted and paid the ultimate price.However, he did so at a very great cost to theLibyan nation.Another important lesson is that the will ofthe people is the cornerstone of legitimategovernance. To put it differently, a govern-ment that enjoys the support and goodwillof the people is the “true government of, byand for the people.” This is why the will ofthe people must be respected at all times topreserve government’s legitimacy.Leaders in Nigeria and elsewhere in the

world should realise that change is the onlyconcept or phenomenon that is constantand, therefore, inevitable in the affairs ofmen. While humans have a transient exis-tence in the present order of creation onearth, human institutions like governmentoutlive them. This is why no leader is in truesense indispensable to the existence or sur-vival of a nation. When an aggrieved peoplerise up in arms against their leadership, it isa clarion call on that leadership that its timeis up and that they no longer need its servic-es. More often than not, when the flood of

change surges, leaders who can’t manage itget swept away from their seat of power. TheLibyan experience in particular is a perfectlaboratory experimentation that has provedthe hypothesis valid, that when a people arepushed to the wall, it is natural that theyfight back in their collective subjugation.Gaddafi’s fist of iron rule in Libya enduredfor 42 years, and when Libyans said enoughwas enough, he didn’t blink and what fol-lowed is now history - he ended up makinghimself a past tense in Libyan affairs.Furthermore, social injustice and leader-

ship exclusivity, as we saw in the Darfur case,can trigger revolutions whose destructivepower can consume a nation. The best betfor leaders is to correlate every segment ofsociety and give everyone a true sense ofbelonging by way of consultation and con-sensus building, creating equal opportuni-ties for all and access to state resources,social justice, physical developmentthrough social infrastructure and appoint-ments, among others. This is the foundationfor forging a united, virile and strongnation.It is high time Nigerian leaders offered self-less service to their country by making thedesired sacrifices that would help catapultthe country higher on the vault of develop-ment. It is beyond any argument thatGaddafi’s Libya was a welfare state, yet thatpolitical order was toppled in what becameknown as the Libyan revolution. If a revolution of that scale can engulf thatwelfare North African country, where thestate provided free education and accom-modation, among others, to its citizens,what is the guarantee that it can’t happen inseemingly docile countries, includingNigeria, with the rampant economic painsand hardship being faced by the commonman in the midst of stupendous oil and gaswealth that is controlled by a few to thedetriment of millions?• Mr. Dennis wrote from Lagos

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E-mail letters@ngrguardiannews.com; www.ngrguardiannews.com(ISSN NO 0189-5125)Editor:MARTINS OLOJA . ABC

The cost of freedom in Libyaand Darfur: Lessons for Nigeria

By Dennis Alemu

leaders eventually entered an armistice inNairobi, Kenya, which cleared the path for areferendum to decide the political futureof Darfur and the entire Southern Sudan.The referendum was conducted in January2011. With over 98 per cent voting in favourof independence, the Republic of SouthernSudan was born on July 9, 2011. Africa’syoungest state leaves behind a dark chap-ter of history that is steeped in violence,criminal neglect and underdevelopment,gross violations of human rights andbloodshed.The Libyan Revolution: The story of the

Libyan insurgency is all too familiar andwell narrated. In much of the Arab world,the conspicuous political landmark is thatof a chronology of decades of one-man rulewithout accountability to the people. Inthose climes, there is no fixed term ofoffice, only a leader’s longevity and/ordeath that determines his stay in power.The leaders there exercise absolute politi-cal and religious authority that is rooted inIslamic theocracy. This offers them thepolitical franchise to run their countriesaccording to their personal caprices andtheir actions largely go unchallenged. Libya was a quintessential example of

countries in this unique “political comity”and Col. Muammar Gaddafi was the “land-lord of the nation” in that political order.The Libyan uprising, which began inFebruary 2011, was seen globally as derivingfrom the Arab Spring and it culminated inthe ouster and death of Gaddafi. At least35,000 Libyans died in the war thatdragged for eight months. What initially

began as street protests against the 42-yearold regime of Gaddafi snowballed into afull-scale civil war that left the country’spolitical economy in tatters.Tripoli’s air-borne bombardments of

unarmed protesters provoked worldwideanger, forcing the United Nations to passResolution 1973, which mandated NATOand its allies to cripple Libyan air defences.A no-fly zone was declared and enforced bythe UN through NATO. European powersconsisting of France, Britain, Spain andGermany led the decisive offensive to liber-ate Libya.Besides the prohibitive human cost the

Libyan people incurred in the insurgency,the country’s critical infrastructure suf-fered severe setback. NATO SecretaryGeneral, Anders Fogh Rasmussen, at one ofhis press briefings, declared that theLibyan people had had enough suffering,death and destruction because of the con-flict. He declared: “The Gaddafi regime isclearly crumbling. The sooner Gaddafirealizes that he cannot win the battleagainst his own people, the better - so thatthe Libyan people can be spared furtherbloodshed and suffering.” He advised the former leader, Gaddafi, tospare his people further suffering by step-ping down from power. His plea fell ondeaf ears, as Gaddafi didn’t until insurgentfighters killed him in November 2011. It isinstructive that there are many lessons tobe learnt from the Libya and Darfur crises.First, leaders should not take the peoplethey lead for granted in anything. Gaddafitook his fellow countrymen and women

The basis of the uprising, according to theinsurgents, was the ‘long years of neglectof Darfur,’ which is home to a substantialshare of that country’s vaults of oil wealth.The Darfur people were not allowed fullparticipation in the affairs of their country,under the control of the Islamic north inKhartoum. The revolt was to set afoot agrievous ethnic cleansing agenda. Thearmed Arab militants, who were govern-ment-sponsored, known locally asJanjaweeds (which literally meansdemons on horsebacks), engaged in mas-sive killing, maiming and assault on womenof Darfur. Aerial footages on cable newsshowed the rampaging Janjaweeds settinghouses ablaze, after the Sudanese AirForce had strafed villages and towns. Themission of the Arab-controlled governmentwas to ultimately Islamise Darfur commu-nities, which are mainly Christians, by wip-ing out all males, including day-old malebabies.

First, leaders should not take the peoplethey lead for granted in anything. Anotherimportant lesson is that the will of the peo-ple is the cornerstone of legitimate gover-nance. To put it differently, a governmentthat enjoys the support and goodwill of thepeople is the ‘true government of, by andfor the people.’ More often than not, whenthe flood of change surges, leaders whocan’t manage it get swept away from theirseat of power. Social injustice and leader-ship exclusivity, as we saw in the Darfurcase, can trigger revolutions whosedestructive power can consume a nation.The best bet for leaders is to correlateevery segment of society and give every-one a true sense of belonging by way ofconsultation and consensus building, cre-ating equal opportunities for all andaccess to state resources, social justice,physical development through social infra-structure and appointments, among oth-ers. This is the foundation for forging aunited, virile and strong nation.

Euphoria, as South Sudanese celebrate their independence to end decades of denial and programmed annihilation.But their victory did not come cheap – no, not with the numberless male infants who were roasted by the government-sponsored armed Arab militants, Janjaweeds, to ensure the ultimate ethnic cleansing of the Dafur people.