Sunday, April 30, 2017
Edo: A tribunal’s curious definition of over-voting
By Nosa Omorodion
AFTER six months of competitive legalese and high drama with doses of comic relief, the Edo State Governorship Election Petition Tribunal on April 14, 2017, delivered judgment in the petition filed by Pastor Osagie Ize-Iyamu and the Peoples Democratic Party, PDP, challenging the declaration by INEC that Mr. Godwin Obaseki of the All Progressives Party, APC, won the 2016 Edo State Governorship Election. The respondents in the petition, were INEC, Obaseki and APC as first, second and third respondents, respectively.
The petitioners had anchored their petition on alleged electoral infractions namely: improper accreditation/non-accreditation and over-voting in the election that held on September 28, 2016, and which they submitted contravened the Electoral Act 2010 (as amended) and the 2016 INEC Election Manual – an official guide for the conduct of the election. And ultimately, they sought the leave of the Tribunal to declare Pastor Osagie Ize-Iyamu as the validly elected governor of Edo State in the election under contention.
It was not unexpected that the judgment would go either way of the petitioners or the respondents. But the manner in which it was delivered and the emergent presumptions upon which the judgment was based could be said to be novel and of questionable standard.
The Tribunal Panel of Judges chaired by the Kano State born Justice Ahmed Badamasi in his ruling, dismissed the petition on the grounds that it lacked merit, saying that the Petitioners had not addressed the issue of malpractice which they had canvassed at pre-trial. The Tribunal in a bid to justify itself, apparently indulged in the trivialisation of the weighty issues of electoral non compliance which the petitioners by right and by legal direction had adopted, having canvassed and listed same at pretrial, to pursue the reliefs sought.
The Tribunal while dismissing the petition averred that: (1) the issue of accreditation and manner of conducting it, is an administrative exercise which goes to no issue as a ground for challenging the conduct of the election; and (2) that the petitioners’ manner of proving their allegation of over-voting does not subsist on what constitutes over-voting in an election.
While many people have found the expressions of the Tribunal on these two critical elements of the petition doubtful, its definition of what constitutes over-voting, in particular, has thrown up a controversy within the legal circle and the court of public opinion. Indeed one could say the Tribunal has caused a semantic confusion which has left many wondering if over-voting in judicial lexicon is different from the literal meaning of the word or the contemplation of the extant law.
Quite vividly, the petitioners had gone the length to prove that the election was characterised by incidents of over-voting, and for which they sought appropriate remedy, by presenting before the Tribunal, certified true copies of the election units results sheets showing discrepancies that tended towards inflation of votes. They also presented ninety-one witnesses within the constraint of the fourteen days alloted them, to testify in their favour while adopting written depositions that were already before the Tribunal.
Furthermore, the petitioners had also caused the Tribunal to subpoena ballot papers used in four of the eighteen local government areas for a recount in a bid to justify their claim of over-voting. However, the recount exercise which the Tribunal permitted, could not be concluded before the time allocated to the petitioners for presentation of evidence elapsed. Nevertheless, the results of the recounted ballot papers in Etsako West, among others, exposed the fact that there was massive over-voting, such that the result of that area had virtually been illegally doubled. Whereas INEC declared a result of about 17,000 votes for Etsako West, only about 8000 ballot papers were found upon verification by the court ordered recount.
This was an ample evidence of reprehensible non compliance that characterised the election and which in spite of the inconclusive recount, was captured in the documentary evidence made available to the Tribunal in the form of certified true copies of results sheets and voters registers used for the election. The Tribunal which had by its order led to this revelation and kept a record of it made no mention of it in its judgment.
Interesting enough, while the Tribunal gave the impression that the witnesses called by the petitioners were not sufficient to justify their allegation, it made no issue of the fact that the 1st respondent, INEC failed to present any witness despite having been allocated ten days for its defence.
In a curious twist, however, while delivering judgment, Justice Ahmed Badamasi swept the incredible ballot paper revelations under the carpet by not giving judicial attention to the relevance of the documentary evidence before the Tribunal, which are the controversial result sheets, the result of the partial recount at the Tribunal and the chart of the contested polling units produced by the petitioners for the direction of the Tribunal.
Instead, the Tribunal launched into a weird definition of the concept of over-voting in order to shoot down the petition. Contrary to the commonly held opinion, Justice Ahmed Badamasi with his co-panelists, ruled that over-voting as contemplated by the Electoral Act, is a situation whereby the result declared for a polling unit of an election is more than the number of all the voters registered for that unit. This is obviously in stark contrast to the popular belief that over-voting is a situation whereby the votes recorded for a polling unit is more than the number of voters that had actually voted in a particular election.
The questions arising from the Tribunal’s rather queer assertion are: (1) How could the Tribunal’s idea of over-voting have been contemplated when it is basically illogical and without precedence for all registered voters in a polling unit to participate in the voting process? (2) How logical could the Tribunal have been when it is common knowledge that we have never had a more than sixty percent voter participation in the five general elections held since 1999? (3) Does it mean that in a unit where for instance we have 1000 registered voters, 250 voters were accredited and declared to have voted but 300 votes were recorded by the INEC officials, over-voting does not subsist? (4) Could the absent voters on the register be included in the number of persons that voted? These are questions, among others, that presently agitate the minds of Edo people while they await the judgment of the Appeal Court when the case shall have made its round of that superior court.
Meanwhile, the Tribunal’s ruling that the accreditation exercise is discretional and of no consequence to determining the credibility of the conduct of an election in Nigeria is another nagging issue that the people are eager to see the Appeal Court and, of course, the Supreme Court resolve. Of what value is the accreditation of voters if not to keep record of the actual number of voters that participated in the election?
The Tribunal by its judgment has served the Appellate Courts a delicate dish of definitions which run contrary to popular understanding. While the factors that may have influenced the Tribunal to redefine over-voting and the essence of voters’ accreditation remain a matter for speculation, it is expected that the Appeal Court, being availed of the facts of the petition and upon having reviewed the judgment of the inferior court against available evidences, will either concur or disagree with the Tribunal’s definitions and overall judgment. However, until then, the feeling that the Tribunal erred in its judgment just refuses to go away.
*Mr. Omorodion, a political analyst, wrote from Benin City, Edo State.
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Delta judiciary staff sentenced to death for killing flatmate’s wife
By Festus Ahon
UGHELLI—A 49-year-old judiciary staff in Delta State, Mr. Narebor Stephen Donbrapade, has been sentenced to death by hanging for stabbing his flatmate’s wife to death by a Delta State high court sitting in Ughelli.
The accused, who hails from Esama town in Bomadi Local Government Area, had on or about January 31, 2013, murdered one Stella Avwenayerhe by stabbing her on the chest at Otobo Street, Ughelli.
Donbrapade, who shared a three bedroom flat with the deceased’s husband, was said to have had a minor altercation with the victim after he walked on the rug in the sitting room without removing his shoes.
Annoyed that he was reprimanded by the deceased, the accused was said to have dashed into his room only to appear with a knife with which he stabbed Stella Avwenayerhe on the chest. She was confirmed dead by doctors at the Ughelli Central hospital, where she was rushed to by neighbours.
The accused, in his defense, pleaded not guilty to the one-count charge of murder, alleging that the victim was stabbed to death by some unidentified hoodlums in the area.
Delivering his judgment, Justice F. O. Ohwo found the accused guilty on the one-count charge preferred against him by the State Attorney-General through the Director of Public Prosecutions.
He held that the evidences of the four prosecution witnesses called by an Assistant Director in the Ministry of Justice, including the husband of the deceased, proved beyond all reasonable doubt the essential ingredients of the offence of murder against the accused.
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Investment bankers, analysts tango with Fitch over banks’ capital adequacy
….Analysts in divergent views
By Emeka Anaeto, Business Editor & Peter Egwuatu
A CONTROVERSY over capital adequacy amongst Nigerian banks may have ensued on the heels of claims by an international financial rating agency that most Nigerian banks are now undercapitalised following the persistent macroeconomic and currency challenges that characterized their operations since 2015.
Amidst mixed results in the full year 2016 and first quarter 2017 financial reports of banks turned in to the Nigerian Stock Exchange, NSE, world’s leading financial rating agency, Fitch Ratings, has indicated that the banks still have capital adequacy challenges.
The rating agency also indicated that for the full year ended December, 31 2016, most Nigerian banks under-provided for doubtful and substandard loans in other to remain within the regulatory capital adequacy ratio. But some Nigerian investment bankers would not agree with the global rating agency, saying the banks are in substantial compliance with the provisions of the Central Bank Of Nigeria’s Prudential Guidelines and regulations on loan loss provisioning.
Fitch verdict
In its verdict announced last week, Fitch said that while many of the banks failed to provide fully for bad loans, their earnings, especially tier-2 banks, were not strong enough to accommodate such full provision without going down below regulatory requirement for capital adequacy.
Fitch stated: “The latest round of results announced by Nigerian banks highlights capital weakness in the sector, with some mid-sized and small banks particularly vulnerable to deteriorating asset quality
“Headline capital adequacy ratios (CARs) are under severe pressure from inflated foreign-currency risk-weighted assets following last year’s devaluation of the Naira and increasing impaired loans as the economy struggles with lower oil prices.
“Several banks are not provisioning fully for their impaired loans, meaning that their underlying capital position is weaker than indicated by their CARs. Full provisioning would leave some banks close to the minimum regulatory requirement.
“We have analysed the sensitivity of selected banks’ CARs to 50% and 100% rises in their end-2016 impaired loans, assuming full provisioning. While most of the larger banks would still meet regulatory capital requirements, several others would fall short in one or both of the stresses.
“CARs have held up for most of the nine Fitch-rated Nigerian banks that have released 2016 results, helped by strong retained earnings on substantial revaluation gains and foreign-exchange trading income following the naira devaluation.
“However, we believe all banks’ ability to maintain CARs above the regulatory minimum will depend to a large extent on asset quality, which continues to face significant downward pressure given the highly volatile operating environment in Nigeria.”
Bankers, analysts disagree
But reacting to the claim of under-provision for bad loans, a financial analyst and head of research at FSDH Merchant Bank Limited, Mr Ayodele Akinwunmi told Vanguard that Nigerian banks have been compliant with the extant regulatory requirements on provision for bad loans.
He stated: “I think Nigerian banks make provision in line with the relevant regulations and the Central Bank of Nigeria, CBN, Prudential Guidelines. So it may not be appropriate to say that they underprovided.”
Also Managing Director of APT Securities & Funds Limited, a Lagos based investment house, echoed the views of Akinwunmi.
He stated: “I don’t believe in the view of Fitch, since our regulators such as NDIC (Nigerian Deposit Insurance Corporation) and CBN received banks’ reports and review their returns, particularly the NDIC that ensures that the depositors’ funds are protected.
“Probably Fitch is not aware of the restructuring that the CBN permitted banks to restructure with their clients. There were some Oil and Gas loans that CBN allowed for restructuringas in the case of Oando exposure to the banks and similarly to Etisalat which CBN discussed with the lenders.”
In his own comments on the Fitch Ratings verdict, Managing Director of Lambert Trust Limited, another Lagos based investment house, stated: “In providing for Non Performing Loans, NPLs Nigerian banks followed the CBN’s prudential guidelines So, I don’t believe they are under provided because the apex bank watches their financial reports.”
However, Mr Sewa Wusu, Head of Research and Investment Advisory at SCM Capital Limited, an arm of Sterling Bank Plc, took side with Fitch Ratings.
He stated: “I absolutely agree with the conclusion of Fitch Ratings. Before now most banks had actually taken huge provisions which have affected their profitability level and by extension the Capital Adequacy Ratio.
“I think it’s more appropriate to under-provide for bad loans at this time in order not to distort the regulatory threshold for Capital Adequacy Ratio (CAR).
“Most banks have to consider that measure to under-provide in order not to create another round of pressure on their CAR. The current environment is not really conducive to raise fresh capital, either through tier-1 or tier-2 capital. So most banks may not be able to bear such risk at this time.”
Explaining the circumstances of the some of the banks, Sola Oni, a stockbroker and managing director of Sofunix Investcom Limited, stated: “The regulatory provision for NPL (Non-performing Loans) is maximum of five per cent of the total loan. Sometime last year, it was revealed that many banks in Nigeria had exceeded to the point of over 12 per cent.
“Although the CBN admitted that few banks were able to be at the threshold of five per cent, the key issue is that macroeconomic headwinds have made it near impossible for any bank in Nigeria to operate NPL below five percent.
“Fitch Rating should weigh the appraisal of the Nigeria’s banking sector within the context of the structure of operating environment. Recession is an ill wind.”
CBN’s position
Amidst the controversy Central Bank of Nigeria, CBN, has painted a mixed picture of the situation as at end 2016. According to the apex bank, key financial soundness indicators showed a decline in asset quality as the ratio of non-performing loans (NPLs) to gross loans deteriorated in the second half of 2016 by 2.3 percentage points, compared with the levels at end-June 2016.
In its Financial Stability Report for the second half of 2016, CBN stated: “Capital adequacy indicators declined marginally, but remained above the regulatory thresholds. A solvency stress test of the banking industry at end-December 2016 showed that the resilience of banks to moderate and severe shocks deteriorated marginally during the review period.
“Although the sector is more exposed to credit concentration and default risks, there were no significant systemic threats.
“The result of examinations conducted in the review period confirmed the resilience and soundness of banks in the face of daunting challenges. Other regulatory activities of the Bank included the issuance of a guideline on Recovery and Resolution Plans for domestic systemically important banks and the guidance notes on the implementation of IFRS 9.
Deterioration in asset quality
“Commercial banks in Nigeria experienced deterioration in assets quality at end-December 2016. The ratio of non-performing loans (NPLs) to gross loans deteriorated in the second half of 2016 by 2.3 and 8.7 percentage points to 14.0 per cent at end-December 2016 compared with the levels at end-June 2016 and end-December 2015, respectively. The deterioration in asset quality was largely attributed to the rising inflationary trend, negative GDP growth, and the depreciation of the naira.
“The ratio of regulatory capital to risk weighted assets decreased by 0.8 percentage point to 13.9 per cent at end-December 2016, compared to 14.7 per cent at end-June 2016. Similarly, the ratio of Tier-1 capital to risk weighted assets declined by 0.9 percentage point to 12.9 per cent at end December 2016 from 13.8 per cent at end-June 2016. Despite the marginal decrease, the ratios remained above the Basel minimum threshold.
“The ratio of non-performing loans net of provision to capital for the industry increased to 38.4 per cent at end-December 2016 from 28.4 per cent at end-June 2016.”
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University as domain of Sadducees and Philistines
By Owei Lakemfa
THE Covenant University, Sango Ota, is like most of the private universities established by religious missions, one of the costliest in the country. A former student, Mr. Vmamh Lonngji Felix who sued the university for wrongful expulsion, told the court that in less than four years, his parents spent over N10 million as fees and basic upkeep. Yet, the seeds of these universities were sowed, nurtured and harvested with the tithes and offerings of the poor, working and lower middle classes who due to the high fees, have little or no chance of sending their children to such universities.
Some of the rich who can afford the high fees of Covenant University are complaining about the administration turning the school into a military garrison where little or no initiative can be taken by staff and students, and the latter deprived of their basic freedom. The latest is last Wednesday’s suspension of some 200 students for between four weeks and one year. Their offence was, committing the grievous sin of failing to attend an Easter Youth Programme on campus.
Some of the victims who claimed they got tired of attending morning and afternoon services while preparing for examinations, said they were stopped from writing their examinations as part of the punishment. A number of the victims are final year students scheduled to graduate within ten weeks.
The university’s Head of Corporate Communications, Mr. Emmanuel Igban, justified the suspension on the basis that church services are compulsory for the students: “Chapel attendance is mandatory for all students. A student is expected to attend chapel; either the Tuesday or Thursday Chapel service and all other programmes as directed by the Chaplaincy and University Management. Provision is made for signing of attendance and students are expected to be on their seats at least 15 minutes prior to service. Excuse from chapel requires permission from the office of the Dean of Student Affairs. Absence from chapel and Sunday services and other university Assembly (services) attract penalty ranging from letter of warning, suspension to advice to withdraw.”
First, it is unacceptable that parents would be made to pay for an extra semester or session not because their wards failed or rioted, but for failing to attend a non-academic function. Secondly, such antiquated rules are not part of the Joint Admission and Matriculation Board condition for university admission nor are they in any of the rules of the regulatory National Universities Commission, NUC. If during accreditation, the Covenant University had presented such antediluvian rules before the NUC, I am sure it would not have been registered because they are a rape on the Nigerian constitution which guarantees freedom of belief and worship without interference.
Not all the students in a Nigerian university must be Christians, and whatever religion they belong to, they cannot be forced to practice. There must be no compulsion in belief or religion. In any case, a student like any other human being can decide to change his religion. He can proselytize or even become an atheist. Religion cannot be the basis to discipline an undergraduate, at least not in a secular state. If a church wants to create a theocracy, it cannot be by running a secular university. Are the Sadducees and Pharisees in Covenant University going to hold the students accountable before God; didn’t the Holy Bible warn that it is not all those who shout ‘Lord! Lord!! Lord!!! that will enter the Kingdom of God?
A university is neither a monastery nor a church; it is a universe of ideas. It derives from the Latin, universitas magistrorum et scholarium, or “community of teachers and scholars.” It is the citadel or pinnacle of learning, study and research. That is why it is also referred to as the Ivory Tower. So, a university is a place where everything and anything can be interrogated.
Some might argue that students who do not accept the theocratic proclivities of a Chancellor, can go to other universities. This will be standing logic on its head; it is the Chancellor that has the option of not establishing a university if he cannot abide by the country’s constitution or respect the fundamental rights of Nigerians. I would not have made these arguments if the institution were a seminary, but anybody who opts to establish a university, cannot run it like a theological centre. Even in seminaries, I know that critical reasoning and philosophy, are core subjects, so a university like Covenant cannot claim that its core value is “instilling the fear of God”.
A Vice Chancellor who suspends students for not attending a religious programme, is not an academic and cannot be an intellectual. Intellectualism entails critical reasoning and thorough research; it requires the development, application and utilisation of the intellect, and not a collapse into mysticism and spiritualism. This will not be the first time the university will engage in such arbitrariness; in 2012, 126 students were suspended for failing to attend a ‘Departure Service’.
But the school has been emboldened because the NUC tolerated such rules in the university including banning secular music and possession of ‘unholy’ films and home video! It also does not appear to have taken disciplinary actions against the university for widespread complaints that it forces students to submit themselves to all sorts of medical examinations including pregnancy tests. Also, there is no record of NUC action against the Covenant University for ‘making-up’ marks.
In one case, due to alteration of marks, a student (names withheld) who should have had a Third Class reportedly graduated with a Second Class Upper Degree. The practice was so widespread that a lecturer in the Mass Communication Department, Dr. Omojola, allegedly petitioned against the culture in his department which led to the replacement of the Head of Department. However, after a session, the former Head was reinstated and the practice became endemic. In the Chemistry Department, a student who scored 5 percent – which is an outright failure – allegedly had his marks jacked up to 45 percent to enable him pass.
Although the university a few years ago set up a panel headed by Deputy Vice Chancellor (Administration) Taiwo Abioye, a Professor of Stylistics and Applied Linguistics, to examine the worse cases of mark alteration, there is no certainty that this unholy practice has stopped.
Which brings me to a basic point; even where a university claims series of awards and gets itself listed in some nebulous ranking of universities, it does not mean it is a university. The NUC and the Federal Ministry of Education have the duty to call the Covenant University to order and ensure that it runs as a proper university respecting academic freedom, culture and truthfulness.
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Making and unmaking of a “small” President
By Ochereome Nnanna
A NEW book by a Thisday Newspaper Editor and former presidential spokesman, Olusegun Adeniyi, has already started knocking the heads of those who ruled us for the past nineteen years together. Entitled (in typical fashion): Against the Run of Play: How an Incumbent President Was Defeated in Nigeria, the book has predictably returned former President Olusegun Obasanjo to an old hobby: Goodluck Jonathan bashing.
Obasanjo is well known for his life of ironies, pretences and contradictions. It was during his tenure that members of the National Assembly were reportedly routinely bribed to either remove or enthrone candidates of his choice as Senate President or Speaker or even to amend the constitution to enable him to obtain a third term. On one occasion, bags of old naira notes allegedly deployed for such inglorious venture by the Presidency were spilt on the floor of the House of Reps. Yet, Obasanjo regularly calls legislators “thieves”. He engages them in exchanges of insults on the issue of corruption.
An indication of how low Obasanjo and National Assembly members have gone in denigrating each other is seen in a famous episode when a former Speaker of the House of Representatives, Hon. Umar Ghali Na’Abba, whom Obasanjo unsuccessfully fought to unseat reportedly told him to his face: “Mr President, if you want to see the problem of Nigeria, look into the mirror. You will see him there”. Some say Obasanjo has not forgiven the fact that his third term agenda was frustrated by the Senate on 16th May 2006.
Perhaps excited by what he saw in Adeniyi’s book, Obasanjo has come out with a salvo against former President Jonathan. Vanguard front page headline of Thursday 27th April 2017 captured it thus: “Jonathan, from the beginning, was too small for the Presidency”. Sometimes, Obasanjo’s contradictory postures can quite easily pass for deliberate obfuscation to ensure that those who do not understand the substance of an issue would be misled to see him in a positive light he does not really deserve. That is why, in spite of everything, Obasanjo still commands attention and he still has his diehard admirers.
Obasanjo is at his best as a “confusionist” when it comes to the subject of Goodluck Jonathan. You will remember the number of poisonous open letters he wrote to the then President Jonathan in January 2014 which were strangely countered by those of his own daughter, Senator Iyabo Obasanjo, who openly disowned him as her father. Also, recall the drama when he publicly destroyed his Peoples Democratic Party, PDP, membership card in February 2015.
Obasanjo was overjoyed when Jonathan lost his re-election bid in 2015 and he (Obasanjo) drifted to the side of his old political foe, newly elected President Muhammadu Buhari. The same Obasanjo, in January 2017, shocked Nigerians when Jonathan visited him in his hometown in Ibogun, Ogun State. He heaped praises on Jonathan for his “exemplary leadership”. Barely three months after that, he now says that Jonathan was too “small” to be President of Nigeria! Talk about speaking from both sides of the mouth!
I have a question: who produced Goodluck Jonathan as the President of Nigeria? I also have the answer: Olusegun Obasanjo, the Balogun of Owu.
When Obasanjo failed to secure his third term bid in 2006, he settled for his Plans “B” and “C”. The then Rivers State Governor, Dr. Peter Odili, had felt that Obasanjo would support his presidential ambition because he (Odili) had adequately demonstrated his unalloyed loyalty during their eight years as political partners. Odili had toured the country, and even the North appeared favourably disposed to him.
At the last minute, Odili was dropped and Obasanjo settled for the return of the presidency to the North. But he chose a terminally sick Governor Umaru Yar’Adua (knowing his health condition) as the presidential candidate of the then ruling party, the PDP. He also picked Jonathan, who was running for Governor of Bayelsa, as Yar’ Adua’s running mate.
I remember the day both of them were presented on television in Aso Villa almost the way the Police parades criminals. A sweaty Jonathan looked diffident and confused, like a conscript. It was clear that Yar’Adua, who had wanted to return to the classroom as a lecturer, was also dragged into the presidential race by Obasanjo; and he was not the one who chose his running mate by himself.
Later events led many people to believe that Obasanjo knew that Yar’Adua was terminally ill. Some said he wanted to punish the North for spearheading the failure of his tenure extension bid by selecting someone who would not live long while joining him with a fit but perceived timid running mate whom he (Obasanjo) would be able to manipulate as the self-styled Life Leader of PDP. This speculation seemed to be validated by Obasanjo’s subsequent actions.
As Yar’ Adua’s health problems worsened, he was flown unconscious to a Saudi elite hospital in December 2009 after 31 months in power. Because Yar’Adua did not properly transmit power to his Deputy as the constitution demands, Vice President Jonathan was initially shut out of power by the wife of President Yar’Adua, Turai, and the famous “Katsina cabal” of the President. The heat which the political impasse generated in the country led the Senate under David Mark to invoke the “doctrine of necessity” to make Jonathan Acting President, which allowed him to lead effectively.
Apparently, from nowhere, Obasanjo, who had been sidelined by Yar’Adua both in the Party and his government, surfaced and became a promoter for Jonathan’s full empowerment as President. Obviously, his supposed Plan “C” was on course! Even after Jonathan’s 6th May 2010 emergence as President upon Yar’ Adua’s death, Obasanjo openly urged him to run for President on his own steam in 2011.
Things went awry between Jonathan and Obasanjo when it because obvious once again (just as with Yar’ Adua) that he was not allowed to remain as the leader of the PDP, a post which the constitution reserves for an incumbent President. In fact, Obasanjo’s position as the Chairman, Board of Trustees of the PDP was threatened as many stakeholders in the Party wanted him out. It was with great reluctance that he eventually resigned as the BOT Chair in April 2012 and served notice that he would no longer be politically active.
Obasanjo merely went back to the drawing board to prepare for war against Jonathan, particularly as he noticed a gradual swell of the political ferment that would eventually oust Jonathan. The quarrel between Jonathan’s wife, Dame Patience, and the Governor of Rivers State, Chibuike Amaechi became a Jonathan versus Amaechi political shootout. Amaechi was a vocal and activist Chairman of the Governors’ Forum, a post from which he mobilised rebellion against the President within the Party.
Meanwhile, the North’s quest to recapture power had become a regional mania, and Muhammadu Buhari, who had lost three previous presidential elections, had become their messianic arrowhead. Anti-Jonathan conspiracies sprouted all over, and the return of Boko Haram as a murderous Islamist terror outfit shellacked the entire North, with the obvious support of sections of the Arewa political elite. As the opposition groups negotiated towards a merger and the PDP was disintegrating internally, Obasanjo homed into the confusion and started his barrage of vitriolic anti-Jonathan letters.
In the second part of this article coming next Thursday, we will look into what makes Obasanjo describe Dr Goodluck Jonathan as being “too small” to be Nigeria’s President, even though he (Obasanjo) was the one who single-handedly foisted him on Nigerians.
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Constitution review: House c’ttee endorses independent candidacy
By Emman Ovuakporie
ABUJA —THERE is a ray of hope for independent candidates in the 2019 polls as the House of Representatives Special Ad-hoc Committee on the review of the 1999 constitution has approved independent candidacy for elections in Nigeria.
This development was the outcome of the retreat organised by the Policy and Legal Advocacy Centre, PLAC, for members of the committee in Abuja, weekend.
After a robust debate on the clause contained in the amendment of the Electoral Act, members agreed that there was need to test independent candidacy in the political space to reduce the imposition of candidates by political parties
Addressing members after the retreat, Deputy Speaker of the House of Representatives, Sulaimon Lasun Yussuff, who is the chairman of the committee, promised that the National Assembly would give Nigerians an enviable constitution.
The chairman stated that the bill would be considered at plenary to have members’ inputs and further subject the clause to a robust debate
The retreat was concluded last Saturday with an appeal from the chairman to members to take the final stage of the amendment process more serious, so the National Assembly could give Nigerians a new constitution.
He said after the retreat, there would be need for the members of the committee to meet the Senate Committee on the Review of the 1999 Constitution to harmonize “our positions.”
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Sule Lamido to Remain in Our Custody for Further Investigation – Kano Police
Mr
Kayode Aderanti, the Assistant Inspector General of Police in charge of
Zone 1, Kano, says the arrested former Jigawa State Governor, Alhaji
Sule Lamido, would remain in their custody for further investigation.Aderanti, who, spoke through the Public Relations Officer, Zone 1,
DSP Sambo Sokoto disclosed this while briefing newsmen in Kano on
Sunday.According to him, the former Governor ‘honourably’ presented himself
before the Police after an invitation was sent to him to answer
questions.“The invitation was as a result of a complaint we received from the
Jigawa State Government on April 27, following an inciting statements
alleged to have been made on a local radio by Lamido.“The Jigawa State Government alleged that the former Governor called
on his supporters in the state to stop the conduct of the upcoming local
council polls in the state by all means,” he said.According to him, the statement made by Lamido was capable of breaching the Public peace.He said it is a public offence which is contrary to section 114 of the Penal code of Nigeria.He said as soon as the investigation was completed, Lamido would be charged to court for appropriate prosecution.Why I Decided Not to Declare My Assets While In Office – Jonathan
Jonathan said: “It is not the President declaring his assets that
will end Boko Haram and whether I am criticised from head to toe I will
not declare my assets publicly; it is not right; I did not even want to
declare my assets as VP but was forced by the then President Umaru Musa
Yar’Adua.“The law is clear. A public officer should declare his asset, and if
there are issues, then the relevant agencies would have a basis to
assess whether you have amassed wealth or not.Pressed further to make public his assets in the spirit of the
anti-corruption war and moral basis, the book quotes Jonathan as saying,
“I don’t give a damn about it. The law is clear about it and so, making
it public is not issue and I will not play into the hands of people. I
have nothing to hide.“I declared under Yar Ádua because he did it, but it is not proper;
it is not the president declaring assets that will change the country,”
he insisted.The book noted, “By refusing to make public his assets declaration, Jonathan easily played into the hands of the opposition that had started to define him as a corrupt leader.“That characterisation hounded him throughout his tenure and would become a major campaign point in 2015.“But if there was any corruption scandal that did incalculable damage to the credibility of his government, it was the mismanagement of the fuel subsidy funds,” the book noted.It went further: “And with that, critical stakeholders, including organised labour unions and civil society groups-responded with anger and condemnation, vowing to challenge the Federal Government by calling for a nationwide strike.”
Is CBN defending the Naira or Dollar?
‘By Henry Boyo
AS I speak to you, our external reserves stand above $31bn and that provides us with enough fire power to be able to defend the Naira” Godwin Emefiele (CBN Governor, April 25, 2017). However, the question is: Is the CBN actually defending the Naira? This question is examined in the above title, which was first published in Punch and Vanguard Newspapers on January 12, 2015. Please read on:
“Evidently, the serial devaluation of the Naira from stronger than N1=$1 to an abysmal low of about N70=$1 at that time, was probably, the most significant instigator of the oppressive economic challenges induced by the IMF imposed Structural Adjustment Programme(SAP). Nigeria’s once pulsating industrial base soon became almost silent, with increasing idle capacity, which threw many Nigerians into a famished job market. Worse still, those lucky Nigerians who were still employed, regrettably earned wages which were reduced to ‘peanuts’ value by the suffocating Naira devaluation; inevitably, the ‘check out’ syndrome became fashionable, as well heeled professionals, and technocrats sought greener pastures abroad in order to maintain their accustomed lifestyles. Sadly, the impact of the near fatal blows from SAP has truncated our development till this day, and we have since become listed as one of the world’s poorest nations.
Curiously, exceptionally high crude prices, at $140/barrel, and the attendant bountiful dollar reserves accumulated thereafter, did not redeem our economy or improve our social welfare. Inexplicably, increasing dollar reserves, and extended payments cover for our imports, continued to foster weaker Naira exchange rates, such that one is forced to wonder if less reserves would actually stimulate a stronger Naira!
Well, reduced revenue from crude oil prices falling below $60/barrel, since then has undeniably clearly constituted another major onslaught on the Naira exchange rate and our economic progress.
Thus, in our quest for a socially and industrially supportive exchange rate, we find ourselves in a bizarre twist of “heads you lose, tails I win”. Indeed, as with SAP, IMF has curiously also been in the forefront of the Vanguard for further Naira devaluation; the embedded role of IMF technocrats in the management of our economy also fostered the unfortunate notion, despite our best ever foreign reserves and extended imports payments cover, that the Naira is overvalued! Regrettably, government economic blueprints such as NEEDS were predicated on the obtuse mindset, that inspite of the fortuitously bountiful reserves, a stronger Naira and growth cannot evolve without first diversifying the economy.
Well, today, the Naira exchange rate is close to the N180=$1 projected to induce economic diversification and growth in the NEEDS blueprint, but clearly, supportive inflation, cost of borrowing and exchange rate stability are sadly still unattainable. Certainly, no economy can succeed when the real sector is expected to access loanable funds at over 20% while consumer demand remains severely constrained with annual inflation rates of 8-12%, with Naira exchange rate also depreciating, despite increasing revenue and extended payments cover, or indeed where a government readily pays over N600bn interest on loans that are simply sterilized from use despite the acute shortage of cheap funds to drive real sector growth.
Sadly, CBN and our Economic Management Teams have never been able to construct the appropriate foundation which supports low cost of funds (3-6%), low inflation rate (1-3%) and a liberalised forex market to drive the elusive quest for economic diversification.
Nonetheless, politicians, critics, and the public are once again singing the chorus of diversification, and as usual, still labour under the illusion that we will get to El Dorado by simply throwing billions of Naira at various economic sub-sectors. Indeed, in an economy with a burdensome abiding problem of stupendously surplus Naira, these huge intervention funds regrettably only make things worse as they simply compound the problem of eternally surplus Naira when expended; ultimately, the intervention funds instigate another kind of government intervention, which makes it necessary for government to increase its rate of borrowing to mop up increasingly surplus Naira with excruciating and destabilising interest rate which crowd out the real sector from loanable funds with adverse consequences for inflation, economic growth and job creation.
Clearly, the inexplicable burden of eternally surplus Naira is actually the major obstacle in the path of achieving those supportive indices which are required to grow and diversify the economy; eternally surplus Naira is clearly also responsible for weaker Naira exchange rates, as excess Naira becomes regularly pitched against CBN’s rationed dollar auctions which invariably create a market imbalance in favour of the dollar!
Clearly, Nigerians do not interrogate the process with which CBN consolidates it’s so called “own reserves”! Furthermore, CBN’s strategy of creating fresh Naira values whenever it substitutes Naira allocations for dollar derived revenue, undeniably induces the spectre of surplus cash in the economy; furthermore, the presence of such eternally surplus Naira ultimately also protects the dollar market value against the Naira; consequently, CBN ironically becomes a greater defender of dollar rather than the Naira exchange rate!
Thus, the higher the dollar revenue (from high crude prices and output) the greater also would be the fresh supply of Naira that CBN would create and place in the economy as substitute allocations to the actual dollar income.
Thus, whenever we celebrate CBN’s rising dollar reserves, we must recognise that the accumulation of such reserves, unfortunately, ultimately precipitates an increasing spread of surplus Naira or excess liquidity in the money market; sadly, the greater the Naira liquidity the harsher and more counter-productive also, would ultimately be CBN’s monetary control measures to reduce Naira supply, to restrain lending and contain inflation despite the adverse economic consequences of these measures.
It seems farcical from the preceding narrative that the same CBN whose monetary measures actually intimidate and pulverise the Naira in the forex market can also be so wrongly, favourably perceived as defending the Naira with its reserves!
Thus, it is ironical that the CBN which instigates a market disequilibrium in favour of the dollar when it substitutes fresh Naira values for dollar denominated revenue, now turns round in apparent defence of the Naira exchange rate to increasingly auction some of the dollars earlier captured when it unilaterally set the Naira exchange rate and subsequently suffocated the money market with surplus Naira values as allocations; unfortunately such Naira liquidity invariably precipitate weaker Naira exchange rates when pitched against the rationed auctions from the cache of dollars the Apex Bank earlier substituted with Naira allocations.
Surely, the adoption of dollar certificates for allocations of dollar denominated revenue will eliminate or critically reduce the burden of excess Naira liquidity and therefore give the Naira a fighting chance against the dollar in the forex market.”
Save the Naira, Save Nigerians!!
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The $289m special vote for nia was economic sabotage
“Having power destroys the sanity of the powerful. It allows their irrationalities to leave the sphere of dream and come to the real world.” Saul Bellow. (VANGUARD BOOK OF QUOTATIONS, VBQ, p 195).
FOR any economist worthy of the name it must have appeared like fiction or fairy tales. Who would have thought that a President of any nation, even a Banana Republic, said to be a Ph.D holder would in one day sign off N289 million to a security outfit without authority from the National Assembly, NASS, and have the funds withdrawn illegally from a government agency? Saul Bellow has pointed to how power destroys the sanity of most people. But, power allied with stupidity amounts to a double curse on the people led by such individuals. As German philosopher Frederick Von Schiller, 1759-1805 (VBQ p 235) has advised us “Against stupidity [of the leaders] the gods themselves struggle in vain.”
Let us place the $289 million in its true perspective starting with the timing. By February 2015, the price of crude oil globally was already heading for the basement at under $60 per barrel from the zenith of $118 in 2013. External Reserve was being rapidly depleted; Excess Crude Account, had plummeted from over $115 billion in early 2011 to under $3 billion in early 2015. The monthly allocation to states was dropping rapidly such that by February 2015, when the $289 million was ordered released to the National Intelligence Agency, NIA, for reasons still to be disclosed, the situation was as summarized below in a column published on these pages in March 2015. Please read on.
“One does not need to be an economist to understand the points being made here. A sound understanding of elementary school arithmetic will be sufficient. If a state owed its staff three or four months salary, by December 2014, when the average price of crude was over ninety dollars ($90) per barrel, how would it be able to pay now that the January 2015 price is fifty-seven dollars ($57) and falling?
Furthermore, except for July, the revenue from crude oil in 2014 fell below budget every month. By October, it was as low as 45 per cent of budget and went steadily down till December. The Federal Government had augmented the revenue by drawing down the Excess Crude Account, ECA, until it came down to $4.5 billion in October – when $2 billion was again peeled off to help all the tiers of government. At the moment, there is little money left in the ECA to cushion the impact of dwindling oil revenue. In 2015 there will be no ECA cushion.
Obviously, the economy faced harsh times and all other sectors were forced to adjust thei expenditures downwards – except the NIA. The N13 billion given to the security agency in one transfer was more than what the six poorest states received that month and far more than what all the universities got. The Federal Government was even borrowing money at exorbitant rates to pay salaries and the foreign exchange market was poorly funded resulting in higher rates than what would have been the case.
Readers can recollect how all that was required to start rolling back exchange rates from N520/$1 to N380/$1 in March this year was the release of $380 million to appreciate the damage to the economy in February 2015 of withdrawing $289 million from circulation and just warehousing it.
The motives for the release are also as questionable as the quantum of foreign exchange involved. With only three months to the end of the first term, and re-election not assured, observers should wonder why so much money was taken out of circulation at once. What sort of imminent threat was the nation facing that would have called for such massive expenditure on security alone at a time when other national needs were in crying need of funds? Who initiated the request? Surely, such huge expenditure for anything outside statutory allocations would have to be justified by pointing to possible calamity. What was it?
Even if there was a valid reason the funds should not ordinarily have been taken directly from an agency of government which collected revenue for all the three tiers – Federal, States and Local Governments. To that extent the states and local governments were cheated by the Presidency and the NIA. They spent funds which did not belong to them and which had not been appropriated by the National Assembly.
With the benefit of hindsight and the little we have been told about the disbursement of the funds, it turns out that no single item was actually urgent. Building staff quarters for NIA personnel was not an urgent need which could not have been captured in the 2015 budget or even in a revised budget. The fact that as much as $43 million of the funds were still found intact two years after in a flat rented by the wife of the DG-NIA proves conclusively that public funds were handled like private assets? Were the DG’s wife and family allowed access into the flat at will? Who ensured that they also had no direct access to the money kept there?
Finally, who kept the records of expenditure to ensure they were made for the legitimate needs of government. That the NIA carried out clandestine operations is no reason why its accounts cannot be audited to ensure that the operatives are not lining their pockets with public funds. Foreign exchange which should have been in circulation promoting economic growth was simply packed away to the detriment of all Nigerians. That was economic sabotage; not security operations.
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Nigerians face tough foes as Tombim Futures 1 serves off
By John Egbokhan
It promises to be a bumper harvest of tennis action in Nigeria for the next five weeks as the Tombim Tennis Futures 1 serves off today in Abuja, with seven Nigerians competing in the singles draw of 32.
Nigeria’s top player, Sylvester Emmanuel (1160) faces a tough duel against world no 311 from Italy, Aessandro Bega, who is the seed of he computer point-awarding tournament.
Emmanuel Idoko, a wild card entrant, confronts second seed Canadian, Brayden Schnur, who is the world number 308.
Another Nigerian, Clifford Enosoregbe has a date with British qualifier, Joe Cooper even as Emmanuel Emeruwa faces seventh seed, Benjamin Lock of Zimbabwe
Also bidding to reach the second round, home boy, Imeh Ubon must navigate past Mark Fynn of Zimbabwe while Thomas Otu is on a collision course with compatriot Henry Atseye.
The Tombim Open is the first of the three ITF Futures billed for Nigeria to be followed by the Dayak Championship and the GSL Open which are also holding this May.
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Anioma cultural festival glitters with royalty
No fewer than 30 traditional rulers were among the large gathering of Anioma people that witnessed the 14th edition of Anioma Cultural Festival at Anglican Girls Grammar School, Asaba, Delta State.
Organised by the Organisation for the Advancement of Anioma Culture, OFAAC, the culture umbrella body of Anioma people, this year’s fiesta lived up to its billing as the biggest festival in the state.
About 117 musical, dance and drama troupes from across the nine local government areas that make up Delta North senatorial district otherwise known as Anioma nation, graced the occasion.
This year’s fiesta, was not only a carnival, as has been the tradition, it was also a championship for the active promotion of Anioma culture.
OFAAC gave financial awards to three overall best performers from various categories.
This year, the heavyweight performers did not disappoint. Defending champions, Ayolo Troupe, an eclectic, mixed, youth dance troupe from Igbuzo retained the best overall performing group.
The performances of the competing troupes were adjudged under seven categories and each group winner, runner up and second runner-up went home with mouth watering prizes.
OFAAC also awarded big money prizes to three overall best performers from the various categories. This year, the heavyweight performers did not disappoint. Defending champions, Ayolo Troupe, an eclectic, mixed, youth dance troupe from Igbuzo retained the best overall performing group.
Otu Chukwu Anyi Ri Mma, the well-costumed, energetic women’s dance ensemble, from Agbor-Obi were first runners-up while Onu Anioma, the war dance group from Owa Alero bagged the prize for the third overall best performers.
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UNILAG student brought to us dead – LUTH
By Dayo Adesulu
LAGOS—Miss Ariyibi Ayomide, a 100 Level student of the Department of Business Administration, University of Lagos, UNILAG, who allegedly drank poison, was brought to Lagos University Teaching Hospital, LUTH, dead, a top management staff of the hospital confirmed to Vanguard, yesterday.
The staff said: “She was brought in dead and that makes it a coroner’s case. Only the coroner can confirm the cause of death after the protocol of an autopsy. Until such confirmation, it remains suspected suicide.”
<div class=”storify”><iframe src=”//storify.com/Adekunle2/sniper-pesticide/embed?border=false” width=”100%” height=”750″ frameborder=”no”></iframe><script src=”//storify.com/Adekunle2/sniper-pesticide.js?border=false”></script><noscript>[<a href=”//storify.com/Adekunle2/sniper-pesticide” target=”_blank”>View the story “Student drinks Sniper pesticide, kills self ” on Storify</a>]</noscript></div>
The story, which went viral on social media, has it that Ayomide, last Thursday, was accused of theft by her roommates at the Amina Hostel, UNILAG, which she denied. But when her bags were searched, the missing items, according to reports, were found.
The roomates booed and called her names, which made Ayomide to call her mother, who reportedly went to the hostel the following day (Friday) to settle the issue. Her mother paid for the items, which the roommates valued at N2,000.
<div class=”storify”><iframe src=”//storify.com/Adekunle2/sniper-pesticide/embed?border=false” width=”100%” height=”750″ frameborder=”no”></iframe><script src=”//storify.com/Adekunle2/sniper-pesticide.js?border=false”></script><noscript>[<a href=”//storify.com/Adekunle2/sniper-pesticide” target=”_blank”>View the story “Student drinks Sniper pesticide, kills self ” on Storify</a>]</noscript></div>
Ayomide then followed her mother home, with the roommates still booing her.
On getting home, her mother, who is said to be a UNILAG staff, came back to her duty post, leaving Ayomide alone at home.
When she returned in the evening, she met Ayomide in pains. In her dying state, Ayomide pointed at the empty container of a poisonous substance.
The mother rushed her to LUTH, where she was confirmed dead.
Meanwhile, a staff of UNILAG, who does not want his name in print, confirmed the incident, adding that Ayomide was indeed accused of theft by her roommates and eventually confirmed dead at LUTH.
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Why Bayelsa LGs still owe salaries —Commissioner
By Samuel Oyadongha & Emem Idio
YENAGOA—BAYELSA State Commissioner for Local Government Administration, Pastor Agatha Goma, weekend, explained that the local government indebtedness to workers despite receiving the bailout and Paris Club funds from the Federal Government, was because they were used to offset some backlog of workers and teachers’ salaries at the council level.
According to the commissioner, the councils’ huge wage bills coupled with the steady drop in allocation from the Federation Account had caused the councils not to meet up with their financial obligations to council workers and teachers.
Flanked by the Caretaker Committee Chairmen of Ogbia and Brass Local Government Areas, Mr. Ogbianko Egain and Mr. Bello Bina, Pastor Goma said: “We are aware that there have been several releases by the Federal Government to buffer the dwindling resources in the country and hence even at the local governments, such resources have been given.
“We can recall that since we came into office in 2016, one of such resources to buffer the bills of councils was the bailout funds.”
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AMCON parley AMPs over 12,000 bad loan accounts
ASSET Management Corporation of Nigeria (AMCON) has said that it will ensure the success of the Asset Management Partners (AMP) programme.
AMPs are consortiums with specialist skills required to ensure recovery and debt resolution; banking, legal, valuation and accounting. They began operations in May 2016 working together with AMCON to resolve the over six thousand accounts with loan balances of N100million and below.
Speaking in Abuja during feedback session with the AMPs organised to cross-fertilise ideas on the way forward, Managing Director/Chief Executive Officer, AMCON, Mr. Ahmed Kuru called on the AMPs to take the assignment seriously as those that performed creditably well stand the chance of having their portfolio increased in the second batch.
Kuru said the gathering was necessary because it enables AMCON listen to the AMPs and understand the possible challenges they faced in the recovery mandate assigned them.
He reassured the AMPs that AMCON will continue to provide them with the necessary support to ensure the objective of the initiative is achieved. To do that however, he said there was need for all participating AMPs to be open-minded. He also encouraged them to feel free to point out areas they think AMCON should improve on; or even provide support to enable them carry out their assignments better.
Kuru urged them to put in their best towards achieving the deliverables of the AMP initiative and promised that AMCON has incentives to the consortiums that would perform very well.
AMCON said it came up with the ingenious idea of collaborating with AMPs because it became necessary last year given the fact that the Corporation has a total loan portfolio of over twelve thousand loans of various sizes and sectors that are still lingering seven years after AMCON was established. This number compared to AMCON’s staff strength of approximately three hundred, it was obvious AMCON surely needs a strategic approach to improve coverage and results.
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How 2-week-old baby’s cry exposed child trafficker
By Ugochukwu Alaribe
ABA—Police in Aba, Abia State, have rescued a two-week-old baby from a suspected child trafficker, identified as Gift, at Uratta Junction, along the Enugu-Port Harcourt Expressway.
Police sources told Vanguard that Gift, who hails from Gokana, Rivers State, was arrested when she could not explain how she came about the two-week-old baby she was travelling with.
The baby’s incessant cries was said to have aroused the curiosity of policemen, who accosted Gift. On interrogation, she confessed that she was not the biological mother of the baby, but that one Mr. Ntue, from Gokana, handed over the baby to her for upkeep.
Abia State Commissioner of Police, Mr. Leye Oyebade, said the suspect connived with the said Ntue, now at large, and stole the baby from her biological mother and warned nursing mothers to be conscious about the security of their babies.
Oyebade disclosed that the baby has been handed over to a motherless babies’ home in Aba for care, while efforts are ongoing to re-unite her with her biological mother.
He added that police have launched efforts to apprehend the fleeing accomplice, Ntue, and urged members of the public not to hesitate to volunteer useful information that may lead to his arrest.
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IMPORT DUTY: Custom officers storm Berger-yard auto mart
By Godfrey Bivbere
lagos—Men of the Federal Operations Unit, FOU Zone A, the anti-smuggling arm of the Nigeria Customs Service, NCS, have laid siege on the popular Berger-yard auto mart for three days since last Thursday, in search of vehicles suspected to have been shipped into the country without payment or under payment of duty.
The officers, who were accompanied by Army officers of the OP MESA outfit, went to one of the 26 parks to take away three vehicles said to have been cleared without duty payment.
However, the dealer, Kenneth Ezerube and his assistants refused to allow the cars to be taken away until the President of United Berger Motor Dealers Association, UBMDA, Chief Metche Nnadiekwe stepped in asking that the cars be taken to his office.
However, there was disagreement over the Customs officers visit. While Nnadiekwe claimed it was a routine Ezerube, said that the officers were invited by the President to intimidate him over his refusal to make a N35 million contribution.
Responding to the allegation, Nnadiekwe said the Association was actually collecting money to take care of its legal cases and other pressing issues and that Mr. Ezerube had not been contributing to the upkeep of the Association over the years. He was however silent on the N35 million contribution.
The Public Relations Officers of FOU Zone “A”, Jerry Attah, when contacted said the officers were actually there on official duty because there have been petitions of duty evasion or half payments.
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Awojide takes over from Olutola as head of Apostolic Church
lagos—Worried by the controversy surrounding the health condition of President Muhammadu Buhari, National President, the Apostolic Church Nigeria, Gabriel Olutola, has expressed need for Nigerians to pray for the President and other public officers in order to achieve success in their task.
Olutola, who made the appeal during a media briefing on his retirement and announcement of his successor, Pastor Segun Awojide, in Ketu, Lagos, yesterday, said the current state of the country required every public officeholder to rededicate themselves to God’s principles if they intend to be successful.
The cleric stated that the President needs God’s direction to pilot the country’s affairs to achieve permanent victory against insurgents, take the country out of recession and other challenges.
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SERAP to WORLD BANK: Provide more info on Abacha loot or…
By Abdulwahab Abdulah
Socio-Economic Rights and Accountability Project (SERAP) has vowed to pursue appropriate international and national legal actions to ensure transparency and accountability on the projects executed by government with recovered funds from the late General Sani Abacha’s alleged loot.
This was in response to a letter from the World Bank, where it disclosed that it could not provide additional facts on the projects executed with recovered stolen public funds by the late General Sani Abacha.
“SERAP hopes that the World Bank would act as requested. However, take notice that should the Bank fail and/or neglect to take the steps recommended, the Registered Trustees of SERAP would pursue appropriate international and national legal actions to ensure transparency and accountability in this matter.” it stated.
SERAP has petitioned the world body last year requesting that it should provide detailed information regarding how the government utilised the funds released from the seized looted funds recovered from the late Head of State’s foreign accounts.
The World Bank has told Socio-Economic Rights and Accountability Project (SERAP) that it “cannot locate any additional information “
In a statement by its deputy executive director, Timothy Adewale, SERAP requested the World Bank to among other things unravel : “Why 2 rather 8 health centers were completed as disclosed by the report produced by the Bank. The location of the 2 completed projects should be disclosed. If it is true that 174 health centres were built with the Abacha loot and commissioned by the government and to disclose the locations of the centres.”
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18 bag first class as Atta Igala becomes Chancellor at FUOYE
By Rotimi Ojomoyela
Ado-Ekiti—Eighteen graduands at the weekend, bagged first class honours at the maiden convocation of the Federal University, Oye Ekiti, FUOYE.
Speaking on the occasion, graced by eminent personalities from far and near, the Vice Chancellor, Prof. Kayode Soremekun said he would strive to make the university become not only a model but also a self sustaining institution of learning.
He said the university, which was established barely six years ago, was currently rated by the National Universities Commission as the 14th best among the over 100 universities in the country.
Meantime, a prominent traditional ruler, the Attah of Igala, HRM Michael Ameh Idakwo, has appealed to President Muhammadu Buhari to increase the budgetary allocation to tertiary institutions in the country.
The President, Council of Kogi State traditional Chiefs, who also contended that the ongoing economic recession crippling the country should not be used as an excuse not to fund university education, stressed that the universities, as training grounds for the future leaders, should not be starved of funds, saying attempt to do this will derail the country and jeopardize its future.
The monarch spoke during the maiden convocation ceremony of FUOYE, where he was installed as the Chancellor of the university.
He was also decorated with the honorary Doctor of Science of the university.
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Amend Constitution to guarantee LG autonomy — Prof Akande
Ibadan—A former Chief of Staff to Governor Abiola Ajimobi of Oyo State and Visiting Professor of Political Science at Igbinedion University, Okada, Edo State, Adeolu Akande, has advocated local government autonomy as the panacea to the problem of local government administration in the country.
Akande, who was a guest on a television programme monitored in Ibadan, Oyo State capital, at the weekend, said local governments in the country have failed to achieve the objective of grassroots development because of three factors.
He listed the factors as lack of autonomy, lack of direct financial allocation from the federation account and failure to elect local government councils, explaining that the three factors boil down to the issue of local government autonomy.
“Local government councils will be accountable to their people if they are elected. Caretaker committees are only accountable to their appointing autorities,” he said, explaining that it is when a government is accountable to the people that it is motivated to perform to the expectation of the people.
He said the failure to make direct financial allocation to local councils also inhibit their performance.
”The Joint State-Local government account system denies local councils the opportunity to determine projects that are relevant to their people. The situation where state governments award uniform projects for all local government areas is a negation of the principle of grassroots development that undergirds the creation of local councils as third tier of government,” he said.
He advised that the Joint State-Local Government account should be abolished while administrative guidelines are stipulated for the payment of teachers and other workers’ salaries as first line charge on local government accounts.
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Address salary shortfall in varsities, ASUU urges FG
By Ola Ajayi
Ibadan—THE Academic Staff Union of Universities, ASUU, University of Ibadan Chapter, has advised the Federal Government to find lasting solution to the continued shortfall of personnel in universities across the country.
The union, through its Chairman, Dr Deji Omole, said in a statement in Ibadan that the present administration has adopted “Maradona style” in meeting the agreements signed with the union in 2009 and 2013.
According to Omole, while the student to lecturer ratio keeps increasing, and science laboratories are nothing to write home about, lecturers are still expected to teach students with poor facilities to produce globally competitive graduates.
He spoke further that most university lecturers now face hard times due to fractional payment of salaries and unpaid allowances.
Due to lack of attention in the universities, the union expressed fear that the country may suffer another brain drain as conditions of service for Nigerian academics are nothing to write home about even when placed in the context of Africa and not European universities.
Omole noted that ”If lecturers’ welfare and salaries are paid in full with adequate world class teaching facilities, lecturers in our universities will be able to compete globally.’’
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Leadership tussle splits ex-militants’ camp in Ondo
By Dayo Johnson
Akure—LEADERSHIP tussle has torn apart ex-militants known as Gwama Boys in the Ilaje oil-rich community in Ondo State.
This has led to the dissolution of the executive committee of the group by a faction and inauguration of a parallel executive.
The group is made up of ex-agitators, created to defend and protect the interest of Ilaje youths in the state.
A faction of the group had earlier issued a statement recognizing one Taiwo Ikuesan as the new chairman of the group but spokesman of the executive led by Metelewawon Kaffy in a statement weekend, insisted that Aganyebi Kosieda remains the authentic chairman of the association.
Kaffy, after the group’s emergency meeting held at Igbokoda faulted the election conducted by some members, where a new executive committee was inaugurated, saying the members are causing disaffection within the association
But the newly executive said the former executive members were sacked following a number of issues over the years.
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Investment bankers, analysts tango with Fitch over banks’ capital adequacy
….Analysts in divergent views
By Emeka Anaeto, Business Editor & Peter Egwuatu
A CONTROVERSY over capital adequacy amongst Nigerian banks may have ensued on the heels of claims by an international financial rating agency that most Nigerian banks are now undercapitalised following the persistent macroeconomic and currency challenges that characterized their operations since 2015.
Amidst mixed results in the full year 2016 and first quarter 2017 financial reports of banks turned in to the Nigerian Stock Exchange, NSE, world’s leading financial rating agency, Fitch Ratings, has indicated that the banks still have capital adequacy challenges.
The rating agency also indicated that for the full year ended December, 31 2016, most Nigerian banks under-provided for doubtful and substandard loans in other to remain within the regulatory capital adequacy ratio. But some Nigerian investment bankers would not agree with the global rating agency, saying the banks are in substantial compliance with the provisions of the Central Bank Of Nigeria’s Prudential Guidelines and regulations on loan loss provisioning.
Fitch verdict
In its verdict announced last week, Fitch said that while many of the banks failed to provide fully for bad loans, their earnings, especially tier-2 banks, were not strong enough to accommodate such full provision without going down below regulatory requirement for capital adequacy.
Fitch stated: “The latest round of results announced by Nigerian banks highlights capital weakness in the sector, with some mid-sized and small banks particularly vulnerable to deteriorating asset quality
“Headline capital adequacy ratios (CARs) are under severe pressure from inflated foreign-currency risk-weighted assets following last year’s devaluation of the Naira and increasing impaired loans as the economy struggles with lower oil prices.
“Several banks are not provisioning fully for their impaired loans, meaning that their underlying capital position is weaker than indicated by their CARs. Full provisioning would leave some banks close to the minimum regulatory requirement.
“We have analysed the sensitivity of selected banks’ CARs to 50% and 100% rises in their end-2016 impaired loans, assuming full provisioning. While most of the larger banks would still meet regulatory capital requirements, several others would fall short in one or both of the stresses.
“CARs have held up for most of the nine Fitch-rated Nigerian banks that have released 2016 results, helped by strong retained earnings on substantial revaluation gains and foreign-exchange trading income following the naira devaluation.
“However, we believe all banks’ ability to maintain CARs above the regulatory minimum will depend to a large extent on asset quality, which continues to face significant downward pressure given the highly volatile operating environment in Nigeria.”
Bankers, analysts disagree
But reacting to the claim of under-provision for bad loans, a financial analyst and head of research at FSDH Merchant Bank Limited, Mr Ayodele Akinwunmi told Vanguard that Nigerian banks have been compliant with the extant regulatory requirements on provision for bad loans.
He stated: “I think Nigerian banks make provision in line with the relevant regulations and the Central Bank of Nigeria, CBN, Prudential Guidelines. So it may not be appropriate to say that they underprovided.”
Also Managing Director of APT Securities & Funds Limited, a Lagos based investment house, echoed the views of Akinwunmi.
He stated: “I don’t believe in the view of Fitch, since our regulators such as NDIC (Nigerian Deposit Insurance Corporation) and CBN received banks’ reports and review their returns, particularly the NDIC that ensures that the depositors’ funds are protected.
“Probably Fitch is not aware of the restructuring that the CBN permitted banks to restructure with their clients. There were some Oil and Gas loans that CBN allowed for restructuringas in the case of Oando exposure to the banks and similarly to Etisalat which CBN discussed with the lenders.”
In his own comments on the Fitch Ratings verdict, Managing Director of Lambert Trust Limited, another Lagos based investment house, stated: “In providing for Non Performing Loans, NPLs Nigerian banks followed the CBN’s prudential guidelines So, I don’t believe they are under provided because the apex bank watches their financial reports.”
However, Mr Sewa Wusu, Head of Research and Investment Advisory at SCM Capital Limited, an arm of Sterling Bank Plc, took side with Fitch Ratings.
He stated: “I absolutely agree with the conclusion of Fitch Ratings. Before now most banks had actually taken huge provisions which have affected their profitability level and by extension the Capital Adequacy Ratio.
“I think it’s more appropriate to under-provide for bad loans at this time in order not to distort the regulatory threshold for Capital Adequacy Ratio (CAR).
“Most banks have to consider that measure to under-provide in order not to create another round of pressure on their CAR. The current environment is not really conducive to raise fresh capital, either through tier-1 or tier-2 capital. So most banks may not be able to bear such risk at this time.”
Explaining the circumstances of the some of the banks, Sola Oni, a stockbroker and managing director of Sofunix Investcom Limited, stated: “The regulatory provision for NPL (Non-performing Loans) is maximum of five per cent of the total loan. Sometime last year, it was revealed that many banks in Nigeria had exceeded to the point of over 12 per cent.
“Although the CBN admitted that few banks were able to be at the threshold of five per cent, the key issue is that macroeconomic headwinds have made it near impossible for any bank in Nigeria to operate NPL below five percent.
“Fitch Rating should weigh the appraisal of the Nigeria’s banking sector within the context of the structure of operating environment. Recession is an ill wind.”
CBN’s position
Amidst the controversy Central Bank of Nigeria, CBN, has painted a mixed picture of the situation as at end 2016. According to the apex bank, key financial soundness indicators showed a decline in asset quality as the ratio of non-performing loans (NPLs) to gross loans deteriorated in the second half of 2016 by 2.3 percentage points, compared with the levels at end-June 2016.
In its Financial Stability Report for the second half of 2016, CBN stated: “Capital adequacy indicators declined marginally, but remained above the regulatory thresholds. A solvency stress test of the banking industry at end-December 2016 showed that the resilience of banks to moderate and severe shocks deteriorated marginally during the review period.
“Although the sector is more exposed to credit concentration and default risks, there were no significant systemic threats.
“The result of examinations conducted in the review period confirmed the resilience and soundness of banks in the face of daunting challenges. Other regulatory activities of the Bank included the issuance of a guideline on Recovery and Resolution Plans for domestic systemically important banks and the guidance notes on the implementation of IFRS 9.
Deterioration in asset quality
“Commercial banks in Nigeria experienced deterioration in assets quality at end-December 2016. The ratio of non-performing loans (NPLs) to gross loans deteriorated in the second half of 2016 by 2.3 and 8.7 percentage points to 14.0 per cent at end-December 2016 compared with the levels at end-June 2016 and end-December 2015, respectively. The deterioration in asset quality was largely attributed to the rising inflationary trend, negative GDP growth, and the depreciation of the naira.
“The ratio of regulatory capital to risk weighted assets decreased by 0.8 percentage point to 13.9 per cent at end-December 2016, compared to 14.7 per cent at end-June 2016. Similarly, the ratio of Tier-1 capital to risk weighted assets declined by 0.9 percentage point to 12.9 per cent at end December 2016 from 13.8 per cent at end-June 2016. Despite the marginal decrease, the ratios remained above the Basel minimum threshold.
“The ratio of non-performing loans net of provision to capital for the industry increased to 38.4 per cent at end-December 2016 from 28.4 per cent at end-June 2016.”
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Equities gain N197bn on impressive Q1 earning reports
…Exporters FX window to boost inflow from foreign investors
By Nkiruka Nnorom
THE negative sentiment that prevailed in the equities market penultimate week was halted last week as investors took position in the market in reaction to the impressive quarter one,Q1 results released by most of the companies.
Also, the Exporters’ Foreign Exchange, FX window introduced by the Central Bank of Nigeria, CBN, resulted in renewed optimism in equities as the window is expected to boost inflow from foreign investors in the future.
Analysts Expectation:
Analysts from Cowry Assets stated: “We expect some profit-taking in the coming week but we have a positive short-term perspective for equities.”
Analysts from Cordros Research said “ Dangote Cement’s result is impressive, with Earnings Before Interest Tax, Depreciation, and Amortisation, EBITDA consistent with management optimistic outlook. We look for positive investor reaction. Our estimates are under review.”
Meanwhile, the market capitalisation of listed equities rose by N197 billion or 2.26 per cent to close at N8.013 trillion from N8.716 trillion, representing 2.2 per cent increase.
Also, the All Share Index, ASI, rose by 2.26 per cent from 25,189.37 points to 25,756.51 points.
The positive sentiment spread across the entire sectors as all the other sectorial indices closed higher with the exception the NSE insurance, NSE consumer goods that depreciated by 0.17 per cent and 0.05 per cent respectively.
The banking sector recorded the highest return of 6.11 per cent driven by gains in Stanbic IBTC Holdings Plc, which rose by 28.24 per cent. The industrial goods sectors followed with 4.77 per cent week-on-week return on the back of recorded the highest return of Askaka Cement Plc and Lafarge Africa, which went up by 15.61 per cent and 10.70 per cent respectively, while the oil and gas sector went up by 1.99 per cent.
Volume, value traded
Investors staked N9.67 billion on 1.333 billion shares during the week in 16,300 deals, in contrast to a total of 896.748 million shares valued at N5.918 billion that exchanged hands in 11,185 deals in the previous week. The financial services sector, measured by turnover volume led the activity chart with 960.307million shares valued at N6.098 billion exchanged by investors in 9,675 deals; thus contributing 72.03 per cent and 63.06 per cent to the total equity turnover volume and value respectively.
The conglomerates sector followed with 154.404 million shares worth N330.132 million in 896 deals. The third place was occupied by oil and gas sector with a turnover of 60.285 million shares worth N896.174 million in 1,379 deals. Trading on the shares of Access Bank Plc, Transnational Corporation of Nigeria Plc and Fidelity Bank Plc, measured by volume, accounted for 489.178 million shares worth N1.731 billion in 1,665 deals, contributing 36.69 per cent and 17.90 per cent to the total equity turnover volume and value respectively.
Bonds
Investors traded 4,705 units of Federal Government Bonds valued at N3.934 million in 4 deals, compared with a total of 1,311 units valued at N1.346 million transacted the previous week in seven deals
ETPs
Also traded during the week were a total of 533 units of Exchange Traded Products (ETPs) valued at N32,204.30 executed in 15 deal compared with a total of 100 units valued at N6,799.00 transacted last week in one deal.
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Constitution review: House c’ttee endorses independent candidacy
By Emman Ovuakporie
ABUJA —THERE is a ray of hope for independent candidates in the 2019 polls as the House of Representatives Special Ad-hoc Committee on the review of the 1999 constitution has approved independent candidacy for elections in Nigeria.
This development was the outcome of the retreat organised by the Policy and Legal Advocacy Centre, PLAC, for members of the committee in Abuja, weekend.
After a robust debate on the clause contained in the amendment of the Electoral Act, members agreed that there was need to test independent candidacy in the political space to reduce the imposition of candidates by political parties
Addressing members after the retreat, Deputy Speaker of the House of Representatives, Sulaimon Lasun Yussuff, who is the chairman of the committee, promised that the National Assembly would give Nigerians an enviable constitution.
The chairman stated that the bill would be considered at plenary to have members’ inputs and further subject the clause to a robust debate
The retreat was concluded last Saturday with an appeal from the chairman to members to take the final stage of the amendment process more serious, so the National Assembly could give Nigerians a new constitution.
He said after the retreat, there would be need for the members of the committee to meet the Senate Committee on the Review of the 1999 Constitution to harmonize “our positions.”
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Dangote’s pan African investment increases revenue by 74%
SALES recorded by Dangote Cement plants across Africa have significantly impacted on the revenue of the company for the first quarter ended on March 31, 2017 by 74 per cent to a whopping N208.2 billion.
Chief Executive officer of Dangote Cement, Onne van der Weijde, who revealed this over the weekend while presenting the company’s first quarter results to the Nigerian Stock Exchange (NSE), also stated that the company’s earnings per share for the first quarter increased by up 36.2 per cent cent to ¦ 4.25.
According to him: “Dangote Cement produced record financial results in the first three months of 2017. Despite lower Group volumes, we delivered significantly higher revenues and EBITDA after realigning prices late in 2016. Our new pricing strategy meant every tonne worked harder for us in Nigeria, delivering 78.4 per cent more EBITDA per tonne than the same quarter last year.
We have now begun sourcing a significant amount of coal from Nigerian mines owned by our parent, Dangote Industries, and this has not only helped us to improve margins but also reduced our need for imported coal and the foreign currency needed to buy it.
Our Pan-African operations performed strongly, increasing sales volumes by 21.0 per cent and revenues by 74.2 per cent. Pan-African operations now contribute nearly 28 per cent of Group revenues and we are pleased to report a good start for our new import facility in Sierra Leone. We will begin operations in Congo in the coming weeks, further consolidating our position as Sub-Saharan Africa’s leading supplier of cement.”
It would be recalled that the Federal Government (FG) recently lauded Dangote Cement for its efforts in making the country to be self-sufficient in cement production. FG confirmed that Nigeria has attained self-sufficiency in the production of cement and is now an exporter of the commodity, ascribing the feat to Dangote Cement which spearheaded the “backward integration policy” introduced by the government.
The Minister for Solid Minerals Development, Kayode Fayemi, who led a government team to the Dangote Cement plants in Ibese, Ogun State, said the government was happy with the leadership role played by Dangote Cement in executing the backward integration policy in the cement industry.
The minister said it is a success story that Nigeria, which few years ago imported over 60 per cent of her cement needs, now can produce to meet local demands and still export to other nations.
The Minister said: “As you all know, as the Federal government moves to diversify the economy away from oil, two areas the government is focusing on are agriculture and solid minerals, this is why we are embarking on tour of mining operations across the country to know the challenges they face and what could be done to tackle those challenges.
“What Dangote is doing is marvellous. We need to commend them. The way they led the backward integration policy to turn around our fortunes in the cement industry. I am delighted to see the development here bigger than what I saw the last time. And we are looking at how we can replicate the successes in the cement industry in other non-oil sectors of our economy.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta( million metric tons per annum) capacity across Africa, a fully integrated quarry-to-customer producer with production capacity of 29.25Mta in Nigeria.
Its Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines.
The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta.
The Gboko plant in Benue state has 4Mta. The company plans to build new factories in Ogun State (3-6Mta) and Edo State (6.0Mta).
In addition, it has invested several billion dollars to build manufacturing plants and import/grinding terminals across Africa. Our operations are in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.0Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.7Mta import), South Africa (3.3Mta), Tanzania (3.0Mta), and Zambia (1.5Mta).
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Senate’s version of PIB won’t stand – Reps
..Move to probe job losses, tax compliance in telecoms sector
By Emman Ovuakporie & Johnbosco Agbakwuru
ABUJA —THERE are indications that the Senate and the House of Representatives are working at cross-purposes on the passage of the Petroleum Industry Bill, PIB, pending in both chambers.
Though the Senate said recently it would soon pass the PIB into law, the House is yet to commence work on the Bill, which it passed in the last session.
This is even as the House has commenced a probe of telecommunications to determine whether there were irregularities in the employment status and conditions of Nigerians at home and abroad, with special attention on job losses, non-remittance of tax deductions and lopsided expatriate representation.
It was gathered that the oil industry bill in the Senate is silent on how to make the entire sector transparent, fuelling suspicion that some of the elements from the north that frustrated its passage in the 7th Senate are not relenting from having their way seeing the kind of PIB they want passed into law.
Senate’s version not detailed
But Minority Leader of the House of Representatives, Leo Ogor, said the Senate’s version would not stand since it lacks the necessary ingredients required to make it function well and address the challenges in the sector and oil communities.
Ogor, who represents Isoko Federal constituency of Delta State, said: “PIB has a lot of issues at the moment, you have the Senate’s version, you have the House of Representatives’ version, you have another version which came from the ministry.
“If I am not wrong, we will probably be going to look at three different things entirely. There should be some level of consolidation.”
Job losses, tax compliance in telecoms sector
Meanwhile, the House has also commenced an investigation of telecommunications companies in the country to determine whether there are irregularities in the employment and working conditions of Nigerians at home and abroad.
Speaker of the House, Yakubu Dogara, stated while inaugurating the committee, that all corporate entities in the country must operate within the laws of the land.
Dogara, who was represented by the Deputy Majority Whip, Pally Iriase, APC, Owan East/West Federal Constituency of Edo State, said,to this end, the House has inaugurated an adhoc committee to this effect.
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