Inflation Rises to 12.4%, Defies CBN Restrictive Measures

CBN Governor, Sanusi Lamido Sanusi

Despite various stringent monetary tightening measures implemented by the Central Bank of Nigeria (CBN) to tame inflationary pressure in the country, the general price level of goods and services have continued to rise.

The inflation report released by the National Bureau of Statistics (NBS), a copy of which was made available to THISDAY Thursday, revealed that the composite Consumer Price Index (CPI), which is used to gauge inflation level in the country, rose to 12.4 per cent in May 2011. The latest CPI figure was higher than 11.3 per cent recorded in April, even as it represented a 0.91 percent increase when compared with the preceding month’s figure.

Worried by rising inflationary pressure in the country, the Monetary Policy Committee (MPC), which is chaired by the CBN Governor, Mallam Sanusi Lamido Sanusi, had surprisingly raised the Monetary Policy Rate (MPR) from 7.5 per cent, to 8 per cent at its last meeting. The Committee which also lifted the Cash Reserve Requirement (CRR) had expressed its desire to battle inflation which has stubbornly remained at double digits, to single digit rate.

Most analysts attributed the hike in inflation to the rise in price of some household items, building materials and rents. They specifically pointed out that the high cost in kerosene and diesel contributed to the significant rise recorded in the CPI.

The NBS report added: “The urban ‘All Items’ monthly index rose by 0.2 percent while the corresponding rural index rose by 1.5 percent when compared with the preceding month. The year-on-year average consumer price level as at May 2011 for Urban and Rural dwellers rose by 11.5 and 13 percent respectively.

“Thepercentage change in the average composite CPI for the twelve-month period ending May 2011 over the average of the CPI for the previous twelve-month period was 12.6 per cent. This was slightly lower than the figure for the preceding month. The average monthly food prices declined by 0.3 percent in May 2011 compared with April 2011 figure. The level of the Composite Food Index (CFI) was higher than the corresponding level a year ago by 12.2 percent.”

In a related development, in line with its position that only permit by the Department for Petroleum Resources (DPR) will be allowed for the importation of petroleum products, the CBN has taken steps to enforce the policy. The apex bank has scheduled a meeting for all operators to be held in Lagos on Tuesday.

Accordingto a notice to all operators signed by the CBN Director, Trade and Exchange Department, Mr. Batari Musa, a copy of which was posted on its website, “representation to the meeting from each bank shall be a maximum of two staff that must be from Trade Services and International Operations Departments.”

Union Bank Posts N118bn Profit

Group Managing Director, Union Bank Plc, Mrs Funke Osibodu

The management of Union Bank Plc Thursday said  the rescued bank recorded a profit after tax (PAT) of N118 billion for the year ended December 31, 2010, as against the loss after tax of N281 billion it posted in the previous year.

A statement from the bank also showed that it achieved a profit before tax of N47.4 billion in the year under review, compared with a loss after tax of N286.1billion in December, 2009.

The bank attributed the significant increase in its PAT to deferred tax credit as a result of huge losses sustained in the previous year

The statement which also cited a copy of the bank’s audited results released to the Nigerian Stock Exchange (NSE) Thursday, showed that the Union Bank Group, recorded a PAT of N106.5billion for the period under review, indicating a recovery from a loss after tax of N281.3billion posted in 2009.

It further disclosed that the Group recorded gross earnings of N130.4billion, while the Bank accounted for N114billion of the total earnings, signifying that the Group was able to grow its businesses during the review period.

It added: “As a result of the cost-cutting measures adopted by management, the bank's operating expenses reduced once annualized and adjusted for exceptional items from N61 billion for 9 months of 2009 to N64.2 billion for 12 months of 2010.

The strategy of the Bank towards improving the quality of its risk assets and improving liquidity paid off as the group reduced its non-performing loans significantly largely through sales of such loans to the Assets Management Corporation of Nigeria (AMCON).”

Commenting on the performance, Group Managing Director and Chief Executive, Union Bank Plc, Mrs Funke Osibodu, was also quoted to have attributed the feat to the major progress recorded in recoveries, the credit from the AMCON and other recoveries and write backs pursued and executed vigorously by the management.

The Union Bank boss also stated that the profit level was driven by improved operating efficiency, reduction in administrative overheads, among other costs.

Osibodu emphasised that the Bank’s Management would deliver on its promise to completely recapitalise the bank before the expiration of the September 30, 2010 deadline stipulated by the Central Bank of Nigeria (CBN).

The 16/6 Blast: More Questions than Answers

Prince Adetokunbo kayode, Former Defence Minister

The bomb blast at the Police Headquarters, has, more than anything else, exposed the vulnerability of the Nigerian public to the hunting
malaise of bombings, a new wave of the growing terrorist act in the country. If the Nigeria Police headquarters can become vulnerable to terrorist attacks, then the populace is at best at the mercy of the latest marauders in town.

But the attack itself, shocking as it is, throws up several questions. The theory of Trailing the IG — one of the explanations to the attack is that the attacker on whom the bomb eventually exploded, had trailed the Inspector General’s convoy from the city, right into the premises of the Police Headquarters. So the question is: how can an IG who often moves in a convoy of at least five vehicles be trailed by assailants without the security or back-up vehicles noticing or raising the alarm?

Crashing into the Convoy — How could such an unknown and unidentified driver not only  drive so closely to the IG’s convoy, but also be
allowed to gatecrash without being demobilised by the platoon of arms-bearing members of the convoy? What happened to the skill of defensive driving as should be found among drivers of such VIPs? NSA’s Claim — Last Monday, an advertorial that ran in The Guardian
Newspaper, which was a reaction to an editorial comment of THISDAY on security issues in the country, had while protesting the assertion
that “the intelligence gathering ability of the national security services of the country has collapsed”,  claimed that, “on June 3,2011,an attempt by a Police officer to bomb the 7th floor of the police headquarters was uncovered and thwarted.”

 So if 13 days ago, such an attempt was made, should it not have triggered greater surveillance and alertness within the force, especially at the vortex of the nation’s security organ? Identity Details — Until the advertorial, the news of a suicide bomber in the Police Force had not been  publicised.  

So what is the identity of the said police officer? What are the highpoints of the statement obtained from him? And even now, what are the registration details of the car used for the bomb attack? No Security Detectors at the Police HQ? —Because the background story of what really happened is yet scant, it is difficult to understand how the Police Headquarters will not have gadgets and equipment that can be used to detect dangerous weapons like guns, bombs etc.

If there are no detectors, why? If there are, how come this bomber was not detected? No Rapid Response Squad? — Preliminary reports have said about 73 cars were razed in the bomb-induced inferno. 73 cars! Does the Police Headquarters not have any fire fighting engine? That  73 cars got burnt only shows that the response level to disaster is slow, even at the Police Headquarters.

Suicide Bombers now in Town? This is perhaps the most worrisome matter arising in this incident. Yes, bomb blasts are gradually becoming part of our story line as a country, but not suicide bombers.  That a man will accept to die, just to wreak maximum havoc on the rest of
humanity reminds us of the orgy of violence in places some countries.

The Suicide Bomber is Finally Here...

Hafiz Ringim, Police IG

Three days ago, the Inspector General of Police, Mr. Hafiz Ringim,

said the days of Boko Haram were over. He spoke too soon. His own days were almost over Thursday as the fundamentalist group came for him, only missing him narrowly.

A suspected suicide bomber carried out the attack. Then in Damboa, Borno State, four children were killed by a bomb. Boko Haram has claimed responsibility for the attacks and has warned of more to come.

Their days are far from over. Apparently.

Suspected Sabotage Cuts Oil Export by 300,000bpd

Vice Presiden, Namadi Sambo

Nigeria’s crude oil export has suffered a major setback as Shell Petroleum Development Company (SPDC) has declared force majeure on about 300,000 barrels per day Bonny Light loadings for June and July 2011.

Before the latest incident, Nigeria’s crude oil export was 2.4 million barrels daily, while she was also exporting 200,000 barrels of condensate per day.

The declaration of force majeure, which frees the oil giant from all contractual obligations to its customers due to unforeseen circumstances, followed what it called “production cutbacks” caused by leaks and fires on the company’s Trans Niger Pipeline (TNP).

The company did not disclose the volume of crude oil affected by the force majeure, but according to the earlier loading schedules, 10 cargoes of Bonny Light of about 950,000 barrels each were shipped in May 2011, totalling over 300,000 barrels of crude per day.

However, following the operational problems Shell was said to have experienced at the 400,000 barrels per day capacity Bonny Export Terminal, the company had planned to revise exports of Bonny Light for June and July to eight and nine cargoes respectively, translating to over 250,000 barrels per day.

THISDAY, however, could not confirm if the loadings were eventually revised as scheduled.

But confirming the latest development in a statement yesterday, Corporate Media Relations Manager of Shell, Mr Tony Okonedo, attributed the force majeure, which came into effect on “June 13, 2011”, to last week’s fire on the company’s TNP.

According to him, joint investigation visits comprising government agencies, communities and SPDC found that the incidents were caused by hacksaw cuts which indicate third party interference and activities of unknown persons.

“The leaks have been repaired leading to resumption of production on June 12. The TNP which transports production from SPDC and third parties in its Eastern operations to Bonny Terminal, was affected by leaks and five separate fire incidents on both the 24’ and 28’ lines in Bodo, Bera, Biera and Mogho all in Ogoni land, on June 9. SPDC immediately shut the lines, mobilised its pipelines response and fire fighting teams and extinguished the fires by June 11,” Okonedo said.

He also confirmed that the production deferment over the period had affected the loading programme at Bonny Export Terminal, adding that the company would advise customers of a revised schedule.  

Reacting to the incident, the Vice-President HSE, Infrastructure & Logistics, Shell Sub Saharan Africa, Babs Omotowa, said the leaks and fires were indication of a worrying trend not only on the TNP but also on the company’s facilities in other places.

“Sadly, the trend is continuing unabated. At end April, we recorded more than 35 sabotage spills. SPDC is continuing to upgrade facilities, replace pipelines and improve oil spill response systems. But no matter how much we improve our performance, until the activities of oil thieves and illegal refiners are brought to an end, the vast majority of oil spills in the Niger Delta will continue,” Omotowa said.

Kerosene: Independent Marketers Give Conditions for Ending Scarcity

Consumers Queuing to buy kerosene

Independent petroleum marketers under aegis of Jetty and Tank Farm Owners Association of Nigeria (JEPTFON) and Depot and Petroleum Products Marketers Association (DAPPMA) have rejected the revised guidelines on the handling and distribution of Dual Purpose Kerosene (DPK), saying it was not with the consent of its members.

The Nigerian National Petroleum Corporation (NNPC) last week met with members of Major Oil Marketers Association (MOMAN) to take a stand on how to end the lingering kerosene scarcity within 10 days.

It was resolved at the meeting that imported kerosene would be discharged into  depots of members of Major Oil Marketers Association of Nigeria (MOMAN) for onward distribution and sale in their various outlets across the country within the next 10 days. The listed marketers include Mobil, Conoil, Total, AP, MRS Oil and Oando Plc.

But rising from a closed door meeting on Friday,  the independent marketers declared that any attempt to restrict distribution of the product to MOMAN members only “will be a disaster” as according to them, the excluded stakeholders control about 80 percent of infrastructure for efficient reception, storage and distribution of petroleum products across the country.

They insisted that the scarcity was largely due to bottleneck in supply and distribution caused by the NNPC, the sole importer of DPK into the country.

According to them, the revised guidelines were drawn up without the input of all stakeholders as it was a meeting strictly between NNPC and MOMAN “to deliberate exclusion of other stakeholders”.

While noting that the new guidelines were drawn to give undue advantage to MOMAN, the aggrieved marketers said the development will further exacerbate the scarcity of the DPK across the nation rather than abet the situation.

They also submitted that the revised guidelines were drawn up without the input of all stakeholders as it was a meeting strictly between NNPC and Major Oil Marketers Association of Nigeria (MOMAN) to deliberate exclusion of other stakeholders.

The marketers also noted that distribution of DPK for decades has been largely through the “DPR licensed peddlers and surface tank resellers who buy from depots and not filling stations”.

They aggrieved marketers declared: “That any attempt to restrict distribution of DPK to MOMAN members only will be a disaster because other excluded stakeholders control about 80 percent of infrastructure for efficient reception, storage and distribution of petroleum products”,

“We therefore reject these new guidelines and request that the GMD NNPC should immediately convene a meeting of all stakeholders to stipulate guidelines that will genuinely address the problems of supply and distribution of DPK across the nation and in the interest of the common man”, they added. 

Horror, as Assailant Sets Nursing Mother, Her 3 Kids Ablaze

Hafis Ringim, Police IG

By Christopher Isiguzo in Enugu and Muhammad Bello in Port Harcourt

Thick dark cloud pervaded the sleepy community of Achara-Unuhu in Abakaliki Local Government area of Ebonyi State Monday following the death of a nursing mother with three of her children in a strange fire outbreak that gutted their residence while they were asleep. 

The incident, which the deceased’s co-wife is said to be a suspect, also consumed all domestic animals within the compound. 

Only the victim, Mrs. Chinyere Ogbonna Nwaokpuru, and her suckling baby were said to have died instantly in the inferno, while her two other kids who were rushed to the hospital following serious injuries they sustained, died shortly after. 

But for the timely intervention of security personnel, the unfortunate development nearly culminated in a communal feud between Izzi and Ezza people, as the victim was said to be from a neighbouring Ezza but married as second wife to an Achara-Unuhu man of Izzi clan. 

The state Police Public Relations Officer (PPRO), Mr John Eluu, an assistant superintendent of police (ASP), confirmed the incident and said the command would ensure that whoever that is responsible for the incident is apprehended and made to face the full weight of the law. 

THISDAY checks revealed that the victim and her three kids had gone to bed, hale and hearty the previous night after taking their meal, but an unknown person sneaked into her room at about 4:00am and set them ablaze. 

The yet-to-be identified arsonist was said to have bathed the victims and their house with fuel before setting the building on fire. This made it impossible for the deceased and her children to exit their apartment when the fire was raging. 

The husband of the two women was said to be residing in Anambra State, but his mother living in a building next to the house where the victims were burnt, told newsmen that she heard her late daughter-in-law shout: “Jesus.” 

She said this made her to wake up and when she did, she saw that the door to the house was already covered in smoke. 

“I was in my room in the night when I heard someone shouting Jesus; I quickly rushed out to see what was happening though before then smoke has engulfed the whole place but I managed to see someone running out from the room where the deceased were lying but the person was a woman,” she said. 

Sources said there had been no love lost between the two wives apparently because of the inability of the senior wife, Ijeoma, to have children. 

Ijeoma was said to have opposed her husband when he was planning to bring in Chinyere as second wife. She could not be reached as at the time of filing this report. 

It was further gathered that she had been threatening to deal with the husband for taking a second wife in spite of her opposition to the plan. 

Nwaokpuru and the first wife are indigenes of Izzi, whereas the deceased came from Ezza and for the past three years since she got married to the family, she had witnessed no peace until her untimely death. 

Insider sources further disclosed that it was only three weeks ago that the traditional marriage rites were performed on the deceased even as the husband was yet to do same for the first wife. 

The mother-in-law told reporters that the first wife started behaving strangely after the traditional rites on the second wife and started sleeping outside the compound only to return every morning. 

When the police, SSS, civil defence and other related security agents in the state invaded the place and made an attempt to carry away the deceased and the infant baby, they were resisted by an angry mob from Ezza community who overpowered them and started setting ablaze all the houses in the compound and even threatened to kill some of the journalists who attempted taking the photograph of the scene. 

Reacting to the incident, the Coordinator of Abakaliki Development Centre, Mrs. Franca Okpo, said she was still asleep when one of her aides called to alert her of the tragedy.

Okpo added that she immediately arrived the scene to see both members of Ezza and Izzi communities milling over the place and had to alert the Divisional Police Officer in charge of Izzi divisional police command who sent his men to avert skirmishes.

In a related development, the Borno State Police Command has confirmed four persons were killed on Sunday by suspected Boko Haram militants at a drinking joint in Bulumkutu, Maiduguri.

The command’s Public Relations Officer, Malam Lawal Abdullahi, told the News Agency of Nigeria (NAN) in Maiduguri yesterday that the suspected militants invaded the joint while the victims were drinking.

“They raided the joint and shot the victims who were busy drinking.

“All the victims died even after some were rushed to the University of Maiduguri Teaching Hospital (UMTH) for help,'' Abdullahi said.

He added that the militants successfully carried out the attack because it was not properly secured by the owner.

“The area is purely residential and the owner illegally converted the place to a beer parlour without properly registering the place.

“If the place had been properly registered, there would have been the presence of security agents to safeguard it, especially in the face of the security challenges facing the state,'' Abdullahi said. 

NAN reports that the attack came a few hours after the militants gave the Borno State government conditions to be met before any dialogue could take place.

Part of the conditions, which were contained in a letter released to newsmen in Maiduguri, included an unconditional release of its members in police and prison custody.

“We are demanding for the immediate prosecution of all those who were involved in the killing of our leader, late Mohammed Yusuf, who was captured alive by the military after the 2009 crisis in Maiduguri,” the letter said.

The sect also called for the investigation of an alleged poisoning of its members awaiting trial by officials of the Nigeria Prison Service (NPS) in Maiduguri.

It also called on the Federal Government to release the report of the Gen. Sarki Muktar-led committee of enquiry into the human rights abuses by security agents during the 2009 crisis.

The sect also urged the government to work towards implementing the Sharia Islamic code in all states with majority Muslim population in Nigeria.

“We will not enter any agreement with the government except those conditions are met,” it said.

The state Governor Kashim Shettima had on assumption of office called on the sect to discuss with his administration to end the killings.

Meanwhile, at least two Ogoni youths, Mr Goteh Keenam and Mr Dambani have been killed by riot policemen in an attempt to effect their arrest during a protest against the purported relocation of a cantonment in Zor-Sogho village in Khana Local Government area, the Movement for Survival of Ogoni People (MOSOP) has said. 

A third youth, Mr Job Nkpai, who was said to be the mastermind of the crisis, lost his life when his kinsmen got provoked by the action of the police and reacted spontaneously. 

The incident took place on Sunday when the villagers were resisting the alleged sale of a large parcel of their farmland for a so-called Port Harcourt military cantonment relocation project without their consent.   

MOSOP in a statement signed by its spokesperson, Bari-ara Kpakalap, condemned the action of the police.

It accused the police of using excessive force, and called on the Rivers State government to immediately investigate the matter with a view to bringing the perpetrators to justice.

UNICEF Pledges $4.3bn for Children

Ban Ki Moon, UN Sec. Gen

UNICEF is to inject about $4.3 billion for the funding of children health across the globe. The fund Executive Director Anthony Lake,  who spoke at the GAVI pledging conference in Copenhagen , Denmark, noted that  the funds will help in redoubling the effort of agencies so as to improve on the health of children globally.

He said: “The outcome of this pledging conference is tremendous news as it will save  million of lives of the most threatened children in the hardest to reach part of the world.”

UNICEF, a member of GAVI , supplies about 60 per cent of the world’s children vaccines, purchasing close to 2.53 billion doses of traditional and new vaccines put at $750 million

Meanwhile, as the world celebrates Blood Donors Day, a group, Voluntary Blood Donors Club of Nigeria (VBDCN) yesterday in Abuja urged President Goodluck Jonathan to put more effort in ensuring that attention and awareness on blood nation is created.

In a statement made available to THISDAY, the group said  the country must put in place standard facilities in order for Nigerians to stop multiplication  of Transfusion Transmission Infectious diseases such as HIV/AIDS, Hepatitis B, Hepatitis C and Syphilis so that blood recipients will have more life after getting the blood.

The statement signed by the club Chief Executive Officer (CEO) Obeta Uchejeso stated that “It is no longer news that many up till now are still infected after blood transfusion especially in remote areas and where the standard practices of blood transfusion are not yet practiced. The fears of window period are another monster of our time and no wonder the safe live styles such as safe sex, abstinence from sharing of blood and blood products and drugs are highly advocated.”

The group further called on the president to emulate the past president, Chief Olusegun Obasanjo in the aspect of blood safety which he demonstrated when he donated blood on the 12th May, 2005 during the commissioning of the blood donation apex body in Nigeria .