Obama Wants Nigeria to Spearhead Good Governance in Africa

US President, Barack Obama

United States President Barack Obama has called on Nigeria to help strengthen good governance in Africa.

Making the call while hosting President Goodluck Jonathan at the White House in Washington DC on Wednesday evening, the US President also congratulated the Nigerian leader on his inauguration for second term, and all Nigerians for the success of the April general elections.

A source at the meeting held behind closed doors told THISDAY that Obama said he hopes President Jonathan would use his new tenure "to diversify the Nigerian economy and strengthen democracy and good governance in Africa".

At the Wednesday parley, which was the second time Obama would be hosting Jonathan since he became Nigerian leader, the American President noted Nigeria's contributions to the fight against HIV/AIDS pandemic and specifically commended President Jonathan's remarks at the high-level meeting on HIV/AIDS covenend by the United Nations.

In his response, Jonathan was said to have conveyed Nigeria's appreciation to the US for the support provided before, during and after the April general elections.

"President Jonathan thanked US for supporting INEC and also showed Nigeria's appreciation for the various positive comments made by the United States on the outcome of our elections. He said that Nigeria is in a position to help strengtehn democracy on the continent and would not shy away from that responsibility", the source said.

Jonathan was also said to have noted the improved relations between the two countries, particularly the activities of the Nigeria-US Binational Commission, and called for a more vigorous implementation of its objectives.

THISDAY gathered that Jonathan also thanked President Obama for the donation of a US warship to the Nigerian Navy last month and said the ship, which had now been named NNS Thunder, would not only improve Nigeria's defence capabilities, but would also help ensure the security of the Gulf of Guinea.

Jonathan was accompanied to the White House by the Nigerian Ambassador to US, Prof Adebowale Adefuye, National Security Adviser, Gen. Owoeye Azazi, Director of National Intelligence Agency (NIA), Olaniyi Oladeji, Permanent Secretary, Foreign Affairs Ministry, Amb. Martin Uhomoibhi, and Principal Secretary to the President, Hassan Tukur.

On the US team were Assistant Secretary, Bureau of African Affairs, Amb. Johnnie Carson, and US Ambassador to Nigeria, Terence P. McCulley, among others.

FG Mulls Amnesty for Boko Haram Members

Vice President, Namadi Sambo


Worried by the growing insecurity in the North-east geo-political zone of the country as a result of the activities of members of the Islamic fundamentalist group, Boko Haram, the Federal Government Thursday perfected a two-prong approach to restore peace in the area.
The government’s template for peace contains what it calls “stick and carrot” approach as enunciated by President Goodluck Jonathan in New York on Wednesday. This involves an amnesty package for the group as well as strengthening security in the area to end the on-going blood-letting in the zone.
As a first step towards that, a security meeting, presided over by Vice-President Namadi Sambo to perfect the template for the amnesty was held Thursday at the Presidential Villa, Abuja.
The meeting was attended by the Chief of Defence Staff, Air Chief Marshal Oluseyi Petinrin; Chief of Army Staff, Lt-Gen. Azubuike Ihejirika; Chief of Air Staff, Air Marshal Mohammed Dikko Umar; and Borno State Commissioner of Police,  M. D Abubakar; while the Chief of Naval Staff and Inspector General of Police were represented.
Although details of the package are still subject to review, Borno State Governor Kashim Shettima, who was at Thursday’s meeting, said:  "For those that are ready to lay down their arms, the president was very emphatic yesterday (Wednesday) in New York when he said we were going to apply the carrot and stick approach. For those that are willing to lay down their arms, I believe the Federal Government and the state government will be very magnanimous. This is an agenda the state government has been championing since we came to power."
To set the ball rolling, THISDAY gathered that the government will reinvigorate its intelligence gathering method to be able to nip in the bud further incidence of bombings in the area.
“This is in tandem of the commitment of Jonathan on the matter to the international community in New York. He had promised to check the activities of the group,  so the security chiefs had to work ahead of time so that they would have a template on how to address the matter before the return of the president to the country,” a source told THISDAY.
The service chiefs, it was also gathered, decided to concentrate more on intelligence gathering before offering a chance to the group to surrender their arms and have pardon in the mode of the amnesty programme declared in the Niger Delta.
Shettima further confirmed that the parley centred on the Boko Haram threats and attacks and stated the readiness of the Federal Government to contain the group.
"Actually, we came to have discussions with the vice-president and other security chiefs on security challenges we are facing in Borno State. We had fruitful discussions  and we cross-coordinated our ideas on how to address those pending issues and the vice-president has pledged full Federal Government support towards nipping in the bud, once and for all, the Boko Haram insurrection in the North-east," he said.
He could however not say if more troops would be deployed but added that Boko Haram would soon be a thing of the past.
The governor insisted that the Boko Haram issue was a political problem but pointed out that it was still premature to be definite on certain decisions about the menace though he expects to open a line of dialogue with the group to enable them to establish their grievances before the government will know how to approach it.
"Let’s open the line of dialogue, know their grievances and see how we can address them but the line of dialogue is very much open. Boko Haram, I wish to reiterate, is a political problem and a political problem always needs a political solution.
“Meanwhile, we cannot talk to them from a position of weakness, we have to talk to them from a position of strength and the Federal Government has pledged all the support needed for us to restore peace and tranquillity to Borno State and for the state to restore its lost glory as the home of peace," he explained.
Shettima however did not respond to the allegation that he was politicising the Boko Haram issue as he would not want to legitimise the contemptuous position of his opponents, who he alleged easily launch into diatribe against him.
In a related development, abductors of the five corps members in Ikwerre Local Government area of Rivers State have demanded a ransom of N100 million.
It was learnt Thursday that the corps members, four females and one male, were kidnapped during their mandatory Community Development Services (CDS) in Omademe on Tuesday afternoon.
An official of NYSC in the council, who pleaded anonymity, disclosed that the kidnappers had contacted the families of their victims and made the outrageous demand. The official also said
the abductors contacted the inspector of the NYSC in the area, making similar demands as a condition for the release of the corps members.
“The kidnappers have called and they are asking for N100 million as ransom. They are saying that N20 million must be paid for each of the corps members.
“They were even telling us to pay the money without delay, that delay is dangerous. I do not understand the meaning of that language, but I pray that nothing should happen to the ‘corpers’,” the sourced said.
The state NYSC Coordinator, Mrs. Esther Chimele-Wogbo, however, denied any knowledge of such demand, saying she was yet to receive such information from any of her member of staff.
“I cannot confirm if they are asking for ransom because we are yet to establish contact with them,” the director explained.
She did not rule out the possibility that the kidnappers had contacted the families of their victims.
Spokesman of the state Police Command, Ben Ugwuegbulam, did not pick calls repeatedly put across to his telephone by THISDAY.

‘New CBN Directive’ll Salvage the Economy’

 CBN Governor, Sanusi Lamido Sanusi

Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi’s declaration, which put withdrawal limit at N150, 000 for bank customers, has been described as a step towards revamping the banking industry and by extension, the economy.

This was the unanimous viewpoint of expert stakeholders who spoke at a press conference, organised to herald the 11th International Exhibition tagged ‘Card, ATM and Mobile Expo Africa’ taking place in Lagos  next week.

The Chief Executive Officer, Intermark, a consulting firm and organiser of the exhibition, Mr. Adeyinka Adedigba; Head of Cards, Diamond Bank, Mr. Robert Giles; and the Chief Executive Officer of Secure ID, Mrs. Kofo Akinkugbe; all agreed that the CBN’s directive would help the public and banking institutions align with the global standard on card usage.

Speaking on what informed the exhibition, Adedigba said it would be an intensive forum to sensitise the public on the need to embrace the electronic payment system in the drive towards a cashless society. He also pointed out that the event was strategically organised to ensure public access to information as far as electronic payment was concerned.

Speaking further, he noted that the forum would go a long way in resolving issues associated with electronic payment as different international speakers would be on hand to grace the sessions.

Similarly, the Head of Cards, Diamond Bank, Mr. Robert Giles, while commenting on the initiative described the forthcoming event as a watershed .which may likely aid awareness on cards and electronic payments in Nigeria,  adding that it is a way of demystifying ATM Channels for the greater benefit of the public.

FAAN Earns N12bn from Multi-designation of Foreign Airlines

FAAN MD, Richard Aisuedeogun

The Federal Airports Authority of Nigeria (FAAN) has recorded about N12 billion from the multi-designation of foreign airlines to the four major airports in the country. The figure is about 70 per cent of the agency’s revenue.

Although domestic airlines complain that designating foreign airlines to different airports in the country hurt their business, FAAN is counting on foreign airlines’ operations for their revenue.

Inside source told THISDAY that an airline like British Airways, which operates from Abuja and Lagos airports, pay landing and parking fees at the two airports. It was gathered   that  its passengers also pay passenger service charge (PSC) to the agency.

It is the same with Air France that operates from Lagos and Port Harcourt and also Lufthansa which operates from Port Harcourt, Abuja and Lagos.

Many other airlines operate from Kano, Abuja and Lagos, a situation, which according to sources is a welcome development to FAAN as it would want more foreign airlines to operate from Nigeria to boost its revenue.

Reacting to the argument that multi-designation of airlines hurt the domestic air transport market, the source said that domestic airlines have not been proactive, adding that even those that carry out international operations are doing so because there is no national carrier.

The source pointed out that domestic carriers do not want to explore other routes; rather they only operate already established routes like Lagos, Abuja, Port Harcourt, Enugu, Kano and Calabar.

The source said that the airlines over compete on these routes and therefore make marginal profits, adding that there are other routes that could even offer more profits than the bigger airports.

The source insists that domestic airlines would not complain that foreign airlines are taking away their business if they were proactive in their routes development. He explained that this was because besides the four major airports that the international carriers operate in, there are others that could be highly profitable to the airlines.

“There are less busy routes that could be more profitable. An airline can deploy smaller aircraft from Uyo to Port Harcourt, Port Harcourt to Kano, Port Harcourt to Sokoto, Maiduguri to Yola and so on.”

The source noted that a lot of people go to Lagos to connect flights to their final destinations, like a traveller who wants to go to Uyo from Maiduguri would have to come to Lagos first and then connect Lagos to Uyo flight.

“Many people move from smaller airports to bigger airports but there are not always flights for these airports. One major airport should be developed in every region of the country so that flights could emanate from these airports to other airports in other parts of the country. Some airlines few years ago were good at operating into those smaller airports and bringing passengers to the big airports, but this did not continue.”

The source also said that if domestic passengers’ needs are met in terms of taking them to their destinations instead of travellers going to where they will get their airlines, the domestic operators will have enough passengers and not grumble about the operations of foreign airlines.

2011 Poll: INEC Confirms Voter Apathy, Says Only 35% Participated

Prof. Attahiru Jega, INEC Chairman

Independent National Electoral Commission (INEC) Thursday expressed concern at the level of voter apathy in last April’s  general election, saying the situation calls for serious concern.

The electoral body disclosed that only about 35 percent  of the 70 million voters participated in the election which it said is not good enough.

This is notwithstanding that the election produced the President, about 26 state Governors and hundreds of legislators for federal and state assemblies

According to figures released by the commission at a workshop in Abuja,  only about 35 per cent of the over 70 million registered voters participated in the elections.

Speaking  at the event Thursday, Chairman of the Commission, Prof. Attahiru Jega   who described the workshop as part of the commission’s effort “to extend the frontiers of citizenship and widen the scope of participation in elections and governance processes,” noted that the low participation of Nigerians in the polls is a clear indication of  political apathy in Nigeria.

 Jega who was represented by one of the National Commissioners in the commission and Chair of the Board of INEC’s Electoral Institute, Prof. Lai Olurode, noted; “There exists voter’s apathy in Nigeria and this is no longer contentious. Voters’ turnout in the just concluded general elections had provided a scientific and empirical evidence of the existence of voter’s apathy and non-challance of sections of the electorate  in elections.”

“The National Assembly elections, the Presidential election and the Gubernatorial and those of the State Assembly elections conducted in April showed that voters’ turnout hovered around 35%. This ugly scenario has implications for popular participation and governance.

“We, as a commission, are determined to enlarge participation in the election processes as a well cherished means of aggregating preferences. This is, because, an apathetic citizenry contribute to wastage of investments/committed to procuring sensitive election materials as well as money spent on voters’ education activities and election personnel remuneration.”

In the research report commissioned by INEC and undertaken by the Friedrich Ebert Stiftung Foundation, lack of transparent elections, election violence and politicians’ non-committal to their campaign promises were identified as major reasons for voters’ apathy in the country.

Task Force Freezes New Power Projects

 Nuhu Way, former Minister of State for Power

Determined to reduce the cost of the on-going reforms in the power sector, the Presidential Task Force on Power (PTFP) has suspended the award of new contracts, staff promotions, transfers and all actions that could increase the cost of business in the sector, THISDAY has learnt.

It was however learnt that the task force has approved the regularisation of the casual staff of the Power Holding Company of Nigeria (PHCN) to fill up what it called “critical vacancies” in the industry.

But such regularisation, according to the task force, should be communicated to the Bureau of Public Enterprises (BPE) so that the associated costs could be captured in BPE’s calculations for the valuation of the assets of the ailing power utility giant.

In a letter with reference number PTFP/PHCN/005/ Vol. 1/59 addressed to the Managing Director of PHCN, Mr Hussein Labo, and obtained by THISDAY, the Chairman of PTPF, Professor Bart Nnaji, said the measure was part of the mandate of the task force to ensure financial discipline and efficient management principles in the implementation of the reform process.

“Some of the actions to be guarded against during the period include award of new salaries; promotions; staff transfers; award of postponable contracts and commencement of new projects that may not add visible value to the business of electric power supply in the country. Generally, any action that may unduly increase the cost of business and by extension, the cost of the reform programme should be avoided,” he said.

Nnaji however directed that based on the decision agreed on at the meeting of the stakeholders at the PTPF Conference Room on April 27, 2011, the management of PHCN should regularise the employment of casual staff to fill up critical positions in the sector.

The issue of non-regularisation of about 5,000 work force had pitted electricity workers under the aegis of the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC) against the Federal Government.

On the current status of the task force, Nnaji told THISDAY on telephone Thursday that PTPF was still working and had not been dissolved by President Goodluck Jonathan.

“The president didn’t say that the task force has been dissolved; he didn’t make such pronouncement,” he said.

Defending the position of the task force, one of its members told THISDAY that there was no point awarding new contracts on assets that had been slated for sale, as this could affect the market value of the assets.

“When you ask investors to submit bids for an asset, you don’t award new contracts on the asset as this could increase its cost. This is the standard practice in the bid process,” he said.

A top official of PHCN also told the newspaper that casualization of the workforce was not a PHCN policy but a temporary arrangement necessitated by the embargo placed by the past military administrations on recruitment in the public sector for 15 years.

“What we have had over those years had been ad hoc, unsynchronised and uncoordinated efforts at getting our jobs done. You know the nature of our industry; it is not an industry that can wait for one day or for a period of time for you to energise. For instance, if you build a sub-station today and you energise it, you must put an operator there immediately. So, for such reasons, an industry like ours – the power sector, cannot wait,” he said.

He disclosed that the defunct National Electric Power Authority (NEPA) first embarked on the recruitment of casual staff in 1992/1993, when it wanted to carry out a nationwide enumeration of its customers.

“It was supposed to be effective within a period of time and those recruited specifically for that purpose discharged. A lot of youth corps members were brought in at that time to do the job, but somehow, they were kept on; they were recycled and sent from one location to the other. Today, much more to our discomfort, many of them are still in the system as casual workers,” he said.

PDP Moves to Zone National Secretary Position to S’West

Haliru Muhammed, PDP Acting National Chairman

By Chuks Okocha in Abuja

The Peoples Democratic Party (PDP) is moving fast to ensure that the election of Hon. Aminu Tambuwal and Hon. Emeka Ihedioha as Speaker and Deputy Speaker of the House of Representatives respectively does not affect the zoning formula in the party. 

The office of the national secretary of the party, originally zoned to the South-south, may now go to the South-west geo-political zone.

It is however confirmed that the office of the national chairman of the party remains zoned to the North-east despite the clamour by South-west chieftains of the party that they should be compensated with the office of the national chairman.

According to a top source in the National Working Committee (NWC), though PDP was still consulting with the various organs of the party to take a final decision on the violation of the zoning arrangement, the decision to re-zone the office of the national secretary of the party to the South-west is meant to assuage the zone that what happened on the floor of the House of Representatives was beyond the control of the PDP.

“By the agreement reached at the expanded national caucus of our great party, the office of the national secretary currently occupied by North-central was zoned to the South-south zone, but with the recent development, it is wise to re-zone it to the South-west.

“This is the position being contemplated for now. This is because the party is proactive and reacting to the mood of the nation. The speaker and his deputy have apologised and the Acting National Chairman, Dr. Mohammed Harilu Bello, on behalf of the party, has accepted their apology and the president while in the United States said that the South-west and the North-east would be compensated.

“It is in this line of thought that the party will move for the re-zoning of the office of the national secretary to the South-west. We are also aware of some agitations by the South-west that they would prefer the office of the national chairman of the party to be zoned to them. But I can tell you that it is not politically expedient for the PDP to have both the president of the country who is the leader of the party and the national chairman coming from the South. So, the move at this moment is proactive to prevent further damage. Consultations are still on. The chairman of the PDP Board of Trustees is still in the South-west and held by the former President, Olusegun Obasanjo,” the source explained.

Meanwhile, a former national chairmanship aspirant of PDP, Chief Sunny Iroche from Abia State, has said the recent scenario that played out in the House of Representatives on the election of the speaker and deputy speaker, in defiance of the party’s zoning formula, implies that zoning is dead in the party.

In a statement, Iroche said: “The emergence of Hon. Tambuwal has put the final nail in the coffin of zoning.  I am an advocate of equity, good governance and for the emergence of the available best candidate for any political or economic office in the land, as long as the person is a Nigerian in good standing.”

According to Iroche, “It is not equitable to have the office of the speaker zoned to a political region with only five members in the House. This is against a zone like the South-east which overwhelmingly voted for the Peoples Democratic Party. It is gratifying that the South-east produced the Secretary to the Government of the Federation, but is this enough political compensation for the region that voted massively for the PDP? If you look at the composition of government today, you will see an inequitable distribution of office, vice-president, Senate president and speaker all from the old Northern bloc.”

He therefore advocated that the office of the national chairman of the party be thrown open.

Tambuwal Creates Five Committees

 

Aminu Tambuwal, House Speaker



Barely 24 hours after the House of Representatives elected a new speaker and deputy speaker, five special committees have been set up to guide the chamber in laying a solid foundation for the next four years.

The House has also adjourned for two weeks to give the management of the National Assembly enough time to prepare the offices and chamber facilities preparatory to full commencement of legislative activities. The Green Chamber will resume plenary on Tuesday, June 28, 2011.

Speaker of the House of Representatives, Hon. Aminu Tambuwal , announced these Tuesday after an executive session which lasted over two hours. Tambuwal said that the lawmakers at the close door session resolved to constitute a Rules Review Committee, a Selection Committee, a Welfare Committee, an Adhoc Committee on Media and Public Relations as well as an Adhoc Committee on the Review of the Code of Conduct of members of the House.

The Rules Review Committee, according to Tambuwal, will be made up of 12 members, while the Selection Committee will comprise of a member each from every state of the federation and the Federal Capital Territory .

Similarly, the Adhoc Committee on Media and Public Relations will be made up of seven members while the Welfare Committee will be made up of one member per state and the Federal Capital Territory.

However the composition of the Adhoc Committee on the Review of Code of Conduct was not stated.

Before dissolving into the executive session, the House had resolved to mandate the Clerk of the National Assembly to convey to the President, Commander- in- Chief of the Armed Forces of the Federal Republic of Nigeria, the Senate of the Federal Republic of Nigeria as well as the Secretary to the Government of the Federation “ that a quorum of the House has assembled” and that Hon. Aminu Tambuwal (Kebbe/Tambuwal Federal Constituency, Sokoto State has been elected Speaker of the House of Representatives and that Hon. Chukwuemeka Ihedioha (Aboh Mbaise/Ngor Okpala Federal Constituency, Imo State has been elected the Deputy Speaker of the House of Representatives.

Meanwhile all members of the National Assembly are Wednesday expected to participate in an interactive session with some selected agencies of government to brief the legislators on the roles of these agencies and their expectations of the legislature. The agencies include National Planning Commission; Revenue Mobilization, Allocation and Fiscal Commission; Budget Office of the Federation; Office of the Accountant General of the Federation and Office of the Auditor General of the Federation. Others include Code of Conduct Bureau; Independent Corrupt Practices and Other Related Offences; Economic and Financial Crimes Commission and Institute for Peace and Conflict Resolution.

Tension in Rescued Banks over Liquidation Threat

CBN Head Office, Abuja

Anxiety has continued to sweep through some of the Central Bank of Nigeria (CBN) rescued banks since the threat by the apex bank to liquidate any of the banks that fails to recapitalise by September 30.

THISDAY investigation in some of the banks showed that the workers who discussed the development in hushed tones, were becoming apprehensive over the security of their jobs.

Governor of the Central Bank of Nigeria (CBN) had informed THISDAY that liquidating the banks that fail to recapitalise before the deadline will be the last option. The apex bank had also said it will withdraw its interbank guarantee by September 30, if the banks fail to recapitalise.

Some workers of the affected banks, who spoke with THISDAY on conditions of anonymity, also disclosed that they have been receiving enquiries from customers on the position of the banks. The official argued that the pronouncement by the apex bank may trigger panic in the affected banks.

“Most of the customers are nervous about what would become of their funds in the bank if we fail to meet the September deadline,” a bank official, who pleaded anonymity, said.

The bailed-out banks include: Afribank Nigeria Plc, Bank PHB Plc, FinBank Plc, Intercontinental Bank Plc, Oceanic Bank International Plc, Spring Bank Plc and Union Bank of Nigeria Plc.

While Intercontinental Bank Plc has signed a Memorandum of Understanding (MoU) with Access Bank Plc, it was recently reported Afribank Plc had jettisoned the working agreement it signed with Vine Capital Limited.

But, the MoU signed between FinBank Plc and First City Monument Plc as well as that of Union Bank and Africa Capital Alliance are currently been challenged in court.

Responding to the development, Banking Analyst, Renaissance Capital, Mr. Adesoji Solanke, insisted that the liquidation option being considered by the apex bank will create economic, social and banking-specific issues for the banking industry as well the economy at large, despite the opportunities it presents for the clean banks.

Solanke added: “It throws up a multitude of issues, especially from the systemically important banks – job losses, infrastructure decay, reduced customer confidence in the sector etc., which are soft but real issues that would take time to bed down. Nevertheless, we believe the Nigerian banking system is stronger today post-CBN intervention, and clearly the sector is consolidating. The big are getting bigger, the small are going niche or setting themselves up for future acquisitions, while few may fall on the way side.”

THISDAY checks also showed that the fear over the continuous existence of the bank also affected the share performance of the banks on the Nigerian Stock Exchange (NSE) last week.

Imaging, Oceanic Bank which stood at N1.76 per share last Tuesday, have so far dropped significantly by 18 per cent in five trading sessions to N1.45 per share on Monday. Similarly, a price of N1.09 per share since May 17, slumped to N1.04 per share on Monday, due to panic by investors. Bank PHB also dropped 13 per cent to close at N1.01 per share on Monday, from N1.16 last week Tuesday.

Cleared Cheques Hit N1.9tn Value

 CBN Governor, Sanusi Lamido Sanusi

Following the ongoing reforms in the Nigerian payment system by the Central Bank of Nigeria (CBN), the total worth of cheques cleared by banks in the country rose by 8 per cent to N1.954 trillion in May.

The figure represented an increase by N145 billion compared with the N1.809 trillion recorded in the month of April, the Managing Director and Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane has said.

The CBN had said its priority is to reform Nigeria's payments system which presently remains largely cash-based. Part of this is the plan by the regulator to introduce mobile payment scheme in the country. The apex bank had also announced a policy that seeks to limit the daily cash withdrawal and lodgment in the country.

Rewane disclosed this in a report at his monthly economic news and views presented at the Lagos Business School (LBS), executive breakfast meeting tagged: “Nigeria’s Make or Break,” a copy of which was made to THISDAY Tuesday. He also revealed that the retail sector of the Nigerian economy enjoyed significant increase in cashless transactions which according to him also climbed from 9 per cent in 2010 to 12 per cent in the first quarter of this year.

The report also said that forex demand decreased by 10.5 per cent from $2.8 billion in April to $2.5 billion in May

“Total Baker Hughes oil rig count dropped from 14 in March to 13 in April. The retail sector has experienced an increase in walk in traffic and sales. This can be attributed to post election spending and optimism. Supermarket operators have grown product base to attract middle class as the industry enjoyed annual growth rate of 10 per cent. But the formal retail sector remains hugely untapped,” he added.

Commenting on the real estate sector, Rewane argued that price discovery mechanism remains faulty in the sector, adding that high brow properties in Ikoyi, Victoria Island and Lekki axis, are seriously experiencing high vacancy factor and decreasing values

According to the financial market experts, middle and low end properties are on the other hand, experiencing increased values and low vacancy factors experience

Stock Market: Analysts Predict Another Bull Run

Stockbrokers on the trading floor of NSE

Analysts in the Nigerian capital market have predicted that the stock market may witness another bull run in the market as investors’ confidence become stronger, following the inauguration of the national assembly.

In their review of the capital market, analysts at Cowry Assets Limited stated that, “This week, we anticipate a dominance of the bulls as investors confidence grows on the heel of successful completion of the political transition programme with the inauguration of the National Assembly.”

Equities investors had last week responded positively to the successful inauguration of President Goodluck Jonathan by increasing their naira votes on stocks.

Fears that further hike in interest rates in a bid to curtail growing inflation following political spending has since varnished as bargain hunters take position on speculation of return of hedge fund managers.

Cowry assets also called on investors to take a long term approach in their investment plan pointing out sectors with gain opportunities.

According to Cowry Assets, “Investors should maintain a medium-to-long term view of the market and should watch out for opportunities in the Banking, Conglomerates, Food & Beverages and Petroleum sub-sectors.”

The equities market closed last week on a positive note compared with the previous week’s poor performance. The NSE benchmark All-Share Index (NSE ASI) gained 0.52 per cent to close at 25,963.50 points compared with the previous week’s appreciation of 0.15 per cent to close at 25,829.75 points. The year-to-date return of the ASI stood at 4.82 per cent.

Also, the NSE- 30 Index appreciated by 12.70 points or 1.10 per cent to close at 1,162.64. The previous week, the ASI and the NSE-30 Indices appreciated by 0.15 per cent and 0.74 per cent, respectively.

However, only two of the four sectoral indices appreciated during the week compared with one that so appreciated during the preceding week. While the NSE Insurance Index went up by 0.07 points or 0.05 per cent to close at 169.66, the NSE Oil & Gas Index grew by 3.71 points or 1.11 per cent to close at 335.73.

Conversely, the NSE Food & Beverage Index depreciated by 0.17 points or 0.02 per cent to close at 849.23 while the NSE Banking Index declined by 0.89 points or 0.22 per cent to close at 395.89.

Meanwhile, the Over-the Counter (OTC) bond market of the Nigerian Stock Exchange (NSE) has continued to suffer massive depreciation as bond holders take profits and move their funds to the money market.

Trading statistics made available to news men by the NSE showed that the OTC recorded a turnover of 103.3 million units worth N86.38 billion exchanged in 841 deals, in contrast to a total of 138.2 million units valued at N123.05 billion exchanged in 1092 deals during the previous week.

The most active bond (measured by turnover volume) was the 4.00 per cent FGN April 2015 (7th FGN Bond 2015 Series 2) with a traded volume of 35.48 million units valued at N26.31 billion in 312 deals.

Diezani: Why We Gave Oil Blocks to NPDC

Diezani Alison-Madueke, former Petroleum Resources Minister



Former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has explained why three oil blocks were assigned to Nigerian Petroleum Develop-ment Company (NPDC), the oil exploration and production arm of the Nigerian National Petroleum Corporation (NNPC).

Denying reports that the oil mining licences – OMLs 4, 38, and 41 – were improperly and illegally assigned to international oil and gas company, Seven Energy International Limited, through its Nigerian subsidiary Septa Energy Nigeria Limited, without open bidding, she said the facts of the matter have been jumbled up “as no sale of oil blocks took place at all”.

According to her, the oil blocks remain assets of the Federal Government and only if they are to be sold is an open bidding held, according to the rules guiding such transactions.

Explaining the origin of the transactions, she said Shell Petroleum Development Company (SPDC) had decided to transfer ownership and operatorship of the three oil blocks to a consortium of two Nigerian companies and their international partner.

The Anglo Dutch company was the operator of the licences under a joint venture between NNPC (55 per cent); Royal Dutch Shell (30 per cent); Total Exploration & Production Nigeria Limited (10 per cent); and Nigeria Agip Oil Company (5 per cent).

The agreement signed by Shell with the buying companies covered its 30 per cent interest in OMLs 4, 38 and 41, covering approximately 2,650 square kilometres in the north-western Niger Delta.

Crude oil production in the area includes about 30 wells with a production capacity of approximately 50,000 barrels of oil equivalent per day.

However, according to Alison-Madueke, Shell did not have the right to transfer operatorship to the companies.

“By the law, once you divest of a block, as a multinational, the operatorship automatically reverts to the government through NNPC and it is the prerogative of the NNPC to now assign that operatorship as it deems fit on behalf of the Federal Government of Nigeria,” she said.

In an interview with THISDAY Board of Editors in Abuja Tuesday, Alison-Madueke said: “Last year, NPDC used to do 40,000 barrels a day. We sat down with the management and asked them to prepare a strategic growth plan for NPDC, which they did. According to the growth plan, if we followed it in terms of moving assets or assigning certain assets to NPDC, over the next four years or so, by 2015, NPDC should move from a company that was producing approximately 40,000bpd when we came in last year, to one that will be producing about 265,000bpd per day and at which point they would be able to rub shoulders with the Petrobras (of Brazil) and the Petronas (of Malaysia) of this world.

“The first issue I had was the OML 119, in which Agip had a service management contract with a Nigerian indigenous partner, and they now wanted to actually take the block... we went through all kinds of issues, and finally, with the support of the President, I was able to move 119 to NPDC. And in this period now, it has meant that NPDC has gone from 40,000 barrels to a company that is producing almost 100,000 because of that assignment.

“So we looked at others. Of course the Seplat/Shell issue had already come up, so we quickly looked at 438 and 441, and again there were choices for us to assign to NPDC. I have no idea how the story was turned 360 degrees and how I am now said to have sold it to the very people I had to fight before we could get the blocks assigned to NPDC. There are hosts of people looking for the blocks. There always are, it is no secret, but we stood our ground and we signed the consent to assign those three to NPDC. Of course, the media reports are now turning the story around.”

Asked why the three oil blocks were not sold through open bid, she said there is a difference between selling and assigning a block.

She explained: “If we were selling the blocks, of course there would have been an open bid. But these blocks were NNPC assets whose operatorship was only being transferred from Shell, the JV operator, to NPDC, which is a subsidiary of the NNPC. You don’t bid when you are assigning. First of all, it is owned by NNPC; it is the 55 per cent that is already owned by NNPC going by the law. NNPC and the government can decide to sell it in the open market or assign it, for the right reasons. So when you are assigning it, it is simply a matter of convening. Of course there are various things to sign, it is under the minister’s prerogative to do that, and that is exactly what we did.”

She said what transpired between NPDC and Seven Energy after the assigning of the oil blocks was “merely a transactional agreement, and it was a funding agreement... there was nothing else in that transaction at all. The assets are intact and they still belong to Nigeria”.

The reports had said the three oil blocks were sold outright “secretly, improperly and illegally”.

It is believed that oil majors who are not happy with the empowerment of indigenous companies as well as some marketers who believe they are not getting enough fuel import contracts are behind the media campaign aimed at stopping Alison-Madueke from being re-appointed minister.

However, she said she was unshaken, maintaining that “if it is the will of God that I be re-appointed, I will be re-appointed... I am not worried at all by all the orchestrated media attacks and banalities.”

Pandemonium as Explosions Kill 10

Hafiz Ringim, Police IG


There was pandemonium in Maiduguri, the Borno State capital, Tuesday as multiple explosions, which rocked the city, led to the death of 10 people. The explosions, which made the people to flee the capital city, were believed to have been detonated by the Islamic fundamentalist group, Boko Haram.

While the explosions went on simultaneously, several gunshots were heard in some parts of the ancient town.

Although the Borno State Police Command, which confirmed the incidents, claimed that only five persons died in the explosions, eyewitnesses said 10 persons were killed.

In one of the explosions, THISDAY gathered that three members of the sect lost their lives when the bomb they tried to detonate at a Catholic church, St. Patrick Church, accidentally went off.

The members of the group had last week attempted to bomb the church, but only a part of it was affected by the explosion. All this happened barely 24 hours after a prominent Islamic cleric, Sheik Ibrahim Biu, was shot dead in his house in Biu town, a distance of 187km from Maiduguri, by suspected members of the same group.

Also, Gwange Police Divisional Headquarters, the Dandal Police Divisional Headquarters, as well as parts of St Patrick Church were destroyed by the explosions.

The explosions went off shortly after the state Governor Kashim Shettima visited and addressed the state House of Assembly, from where he later paid an inspection visit to the Baga Motor Park, as well as the Musa Usman State Secretariat, a stone’s throw from St. Patrick Catholic Church, and the water treatment plant, all within the state capital.

THISDAY source said gunmen believed to be members of Boko Haram invaded the Gwange Police Divisional headquarters and threw several bombs into the station and after the explosions; the assailants, who stood back, engaged the policemen at the police station in gun battle.

It was also gathered that the police shot and killed three of the gunmen, while two passers-by were killed by stray bullets.

A source at the Accident and Emergency Ward of the University of Maiduguri Teaching Hospital confirmed that at about 2:30pm yesterday, five corpses were brought to the hospital. He also said 14 critically injured persons were rushed to the hospital from the Gwange Divisional Police Station.

Apart from the explosions at the Gwange Police Station, another blast was reported to have gone off in a blue Honda Accord car, which was suspected to be carrying some explosive devices, right in front of the gate of St Patrick Church.

Three occupants of the car, believed to be members of Boko Haram sect, were burnt to ashes while two passers-by were also killed as a result of the explosion.

A police man on guard at the St. Patrick Church, who pleaded anonymity, said three persons, including the assailants in the car, died instantly, while others were injured.

He added that the bomb in the car went off shortly after another one was thrown from the car at the church building which resulted in damaging parts of the fence and the roofing of a building within the church premises.

Eyewitnesses said the impact of the bomb that exploded at St Patrick Church, which was situated right opposite the Musa Usman Secretariat, shook the secretariat building and shattered the windows of the offices. Workers of the church were said to have fled the premises.

Details of the explosion that occurred at the Dandal Police Divisional headquarters were sketchy as at press time, but the police station building was defaced when THISDAY visited the premises.

The Police Public Relations Officer, ASP Lawan Abdullahi, said despite the casualties, the day had been “a day of victory for the police because we have gunned down three of the Boko Haram members”.

He added that one AK 47 rifle was recovered from the attackers at the Gwange police station.

Major roads in the town, especially those leading to the scene of the incidents and the Government House have been cordoned off as the streets were deserted.

PDP Rejects Tambuwal, Insists Zoning Is Intact

Haliru Muhammed, PDP Acting National Chairman

A day after President Goodluck Jonathan congratulated Hon. Aminu Tambuwal (from the North-west) and Hon. Emeka Ihedioha (South-east) on their election as House Speaker and Deputy Speaker respectively, the Peoples Democratic Party (PDP) has promised to take “appropriate action” over House’s defiance of the party’s zoning formula.

The party, after an emergency National Working Committee (NWC) meeting, said it would not congratulate the duo as the positions were zoned to the South-west and North-east respectively.

Rather, the PDP said the zoning arrangement announced by the party after the April elections remained intact, reassuring members of the party that the NWC was still consulting and would come out with a position soon.

But former military leader, Gen. Ibrahim Babangida,

obviously rejoicing over the "rebellion" in the House, said the members had displayed "courage" against the party's leadership.

At the emergency NWC meeting summoned by the Acting National Chairman of the party, Dr. Mohammed Harilu Bello, at the party’s national secretariat, PDP lamented the election of the speaker and his deputy against the zoning arrangement.

After the three-hour meeting, the party came out with a statement signed by its National Publicity Secretary, Prof. Ahmed Alkali, saying: “The National Working Committee of the Peoples Democratic Party (PDP) notes with great concern the unfolding developments in the House of Representatives especially the outcome of the election of principal officers on Monday, 6th June 2011.

“While the party believes in, and indeed encourages the exercise of freedom of choice for all Nigerians including members of the National Assembly, it is important to reiterate that the principle of zoning is still an integral part of the PDP Constitution.”

According to the statement, “The idea of zoning is a well thought-out philosophy for national stability and integration. It is the only guarantee that every segment of Nigeria enjoys a sense of belonging by being represented in all the decision-making organs of the government of Nigeria.

“Consequently, prior to the election of principal officers that took place in the Senate and the House of Representatives on the 6th of June 2011, the NWC in collaboration with other decision-making bodies of our party made spirited efforts to build a consensus around the zoning formula. The NWC is currently consulting other organs of the party to re-assess the entire scenario and will come up with an appropriate policy in due course.”

When newsmen asked Alkali why had the PDP not congratulated the Speaker and the Deputy Speaker, he said: “PDP will not congratulate them because they violated the party decision on zoning.”

He said at the appropriate time, PDP would make its position known.

According to another NWC member who spoke to some newsmen, “what happened is against the spirit of party cohesion and supremacy and it would not be allowed to stand.”

He said President Jonathan was currently outside Nigeria that once he returned and necessary consultation made, the party would come out with a position to address the anti-party activities in the House of Representatives.

“At the moment, the errant children are on their own,” he said. The emergency NWC meeting continues Wednesday.

Meanwhile, in a statement signed by his spokesman, Kassim Afegbua, Babangida said: “From my retirement abode, I feel excited about the bold and courageous step taken by the National Assembly (Upper and Lower Houses) through a show of independence for electing their leaderships - Senator David Mark as Senate President for continuity of robust Senate policies and Hon. Aminu Waziri-Tambuwal as Honourable Speaker.”

Specifically, Babangida, in the statement titled the Triumph of Reason, said: “The lower House must be commended for putting the Federal Constitution above partisan interest in the election of the Speaker, putting to an end, month-long scheming and manipulation.

“The bold moves of the Federal House of Representatives will further strengthen our democratic structures and entrench a culture of separation of powers with its manifest checks and balances for a people-driven democracy.

“It is a wakeup call and the earlier the polity allowed this culture of separation of powers to flourish, the better it would be for participatory democracy. I therefore, congratulate both leadership of the National Assembly for being true representatives of the people. Well done. I salute your courage."

The former military president, who assured the leadership of the National Assembly of his support, said: “Let me assure the leadership of the National Assembly of my unflinching support. I will be ready at all times to offer my advice in whatever little way for the sustenance of democracy, rule of law and stability of the system.

“The example that the Federal House has shown would go a long way to eliminate culture of impunity and executive interference into the internal operations and workings of the legislature. It will promote sound debate and robust interaction amongst the Lawmakers for the overall interest of the country.

“I have no doubt in (my) mind about the capability of Honourable Speaker Aminu Waziri-Tambuwal, to discharging his legislative duties with his irrepressible Deputy, Hon. Emeka Ihedioha. This combination will no doubt give Nigerians true and positive representation in the art of law making and stability of democracy.”

Babangida is believed to be one of the brains behind the candidature of Tambuwal in order to get back at President Goodluck Jonathan for contesting in the April elections despite the zoning formula of the party which would have favoured the North.