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Electoral body to redeploy officials before polls

Electoral body to redeploy officials before polls

The Independent
National Electoral Commission has announced that an undisclosed number
of key officials will be redeployed before elections, as political
parties mounted calls for the transfer of resident electoral
commissioners, repeatedly blamed for past electoral malpractices.

Attahiru Jega, the
chairman of the commission was literally pressed by many political
parties yesterday to give a definitive position on the matter which the
commission has evaded in the past. He said “necessary redeployments”
will be made before polls, a veiled remark believed to be a reference
to the resident electoral commissioners and the electoral officers at
the states and local government levels respectively, who have come
under fire for allegedly being the main force behind Nigeria’s past
woeful elections.

“We have serious
allegations,” he said. “We will do necessary redeployments before
elections. But we must do it in a way that will not be disruptive but
will restore public confidence.” Mr Jega’s comment came after political
parties, at a meeting yesterday, insisted that the officers be moved
from their current stations. “These are the people who don’t release
enough materials for a particular area and these are the same people
who release materials more than what is needed at a particular area,”
said Chudi Chukwuani, the chairman of the National Democratic Party.

Discretionary powers

Even with the new
measures taken by the commission ahead of the elections next week, many
of the parties say there were still discretions allowed the key
officials which could be easily abused. An example is the ballot
papers, which despite being customized to each voting center, will have
excess copies sent to the resident electoral commissioners and the
electoral officers. One fear was that such supplements are often sent
to specific areas, where they might be in excess and might lead to
multiple voting and ballot box stuffing. “The RECs and the Eos, you
have to do something about them,” said Victor Umeh, the chairman of the
All Progressive Grand Alliance.

Mr Jega said
initially that the comments may be mere allegations and that the
commission can only act where there are evidences. “The commission is
doing everything possible for the RECs to do their jobs without
partiality or partisanship,” he said. “We will deal with it on case by
case basis if there are evidences. Where it becomes necessary for us to
move the EOs or the RECs, we are very committed to doing that.”

But faced with several concerns on the redeployments, the chairman
said the officials will be moved were necessary before elections,
confirming speculations the transfers may be suspended for the final
days before elections.

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Journalists suspend coverage of commission

Journalists suspend coverage of commission

Journalists in Osun
State, yesterday, suspended coverage of the activities of the
Independent National Electoral Commission (INEC) in the state following
the assault on the state correspondent of the Leadership Newspaper,
Sefiu Ayanbimpe, by the state’s Resident Electoral Commissioner, Rufus
Akeju, at the premises of the commission in Osogbo.

The state council
of the Nigerian Union of Journalists has asked Mr Akeju to tender a
public apology to the victim and the union. The union also called for
the immediate removal of Mr Akeju and asked the police and other law
enforcement agents to investigate the physical attack on Mr Ayanbimpe
in the cause of his professional duty. The union, in a statement signed
by Gbenga Faturoti and Tunji Omofoye, Chairman and Secretary its
Correspondents Chapel respectively, described the action of Mr Akeju as
a gross violation of the codes of conduct and ethics of the commission.

The attack

Mr Ayanbimpe was
working on a petition sent by the state chapter of the Conference of
Nigeria Political Parties (CNPP) to President Goodluck Jonathan,
alleging that Mr Akeju was close to the Action Congress of Nigeria
(ACN) leader, Bola Tinubu. The petition also alleged that Mr Akeju
collected the sum of N25 million from the state government during the
last voters registration exercise, saying that he may not be an
unbiased umpire in the conduct of the April elections.

When the Leadership
reporter sought his reaction on the said allegations on telephone, Mr
Akeju allegedly asked him to come directly to his office. On sighting
him, Mr Akeju was reported to have thrown decorum to the wind and
beaten the reporter to a state of coma before he handed him over to men
of the State Security Services (SSS) who later detained him for several
hours.

Barbaric act

Mr Akeju refused to
offer any explanation for his action when reporters went to his office
after the assault. The union said Mr Akeju was in the habit of
harassing journalists who were carrying out their duties, adding that
he did a similar thing to the state correspondent of Punch Newspaper,
Tunde Odesola, whom he threatened to chase out of the state.

“We wish to state
clearly that for beating a journalist in the cause of performing his
legitimate duty, the action of the Osun REC, Rufus Akeju, was nothing
short of barbaric and uncivilized,” stated the union. “Akeju has been
so reckless and he is not fit to hold a sensitive position of
authority. We hereby call on the Chairman of INEC, Attahiru Jega, to
immediately remove Akeju as Osun REC in order to give room for smooth
relationship between the press and the commission. Failure to remove
Akeju will certainly incur the wrath of all journalists in the state,
numbering over 500, on the commission.”

Mr Ayanbimpe, who was still on hospital bed at a private hospital in
Osogbo as at the time of this report, said he had petitioned the state
Commissioner of Police, Olusegun Solomon, on the matter.

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‘It is not your duty to protect ballot boxes’

‘It is not your duty to protect ballot boxes’

The Director
General of the National Youth Service Corps (NYSC), Maharazu Tsiga has
cautioned corps members not to get involved in the protection of ballot
boxes. Mr Tsiga, who visited corps members at the Wailo NYSC
Orientation Camp in Bauchi State, said: “It is not your duty to protect
ballot boxes, it is the duty of the security agents around. So, please
do not try to protect any ballot box in order not to endanger your
lives. Do what you are asked to based on the schedules given to you and
leave the rest to the people saddled with such responsibilities.” The
NYSC boss added that all steps have been taken to ensure that lives and
property of corps members are protected. “Specifically, all the
Commissioners of Police in the country have been directed to provide
adequate security cover to all the corps members that will be used for
the conduct of the general elections. All you need to do is to
cooperate with them and follow all security tips given to you.” He
emphasised. He added that special mobile numbers of people to be
contacted in times of emergency or security threats will be made
available to the corps members as they leave the camp. He advised them
to be security conscious.

Government’s resolve

Mr Tsiga also said
government has decided that corps members will not be posted to
communities that are known to be hostile to them. He said such
communities must sign undertakings with the security agents before the
government will reconsider them.

On their welfare,
Mr Tsiga announced that the allowance of the corps members has been
increased. He however, did not disclose the new allowance. He said
allowance is fairly reasonable, considering the present economic
situation in the country and urged them to be prudent in their
spending. “You are Nigeria, the future of this country rests on your
shoulders, so please do your best and leave the rest for God so that
your enemies will be put to shame, I can see a bright future for you
all as the sky will be your starting point and not your limit,” he said.

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‘No more display of voters’ register’

‘No more display of voters’ register’

The Resident
Electoral Commissioner of the Independent National Electoral Commission
in Oyo State, Ayo Adakeja, on Wednesday, ruled out the possibility of
displaying the of names of eligible voters in the state for a second
time.

Opposition parties,
particularly the Action Congress of Nigeria and Accord Party, have
called for a fresh display of the register to ascertain whether last
Saturday’s recovery of three Direct Data Capturing (DDC) machines of
the commission in an hotel in the state capital has affected the
integrity of the register.

A senior staff of
the commission and three members of the Peoples Democratic Party (PDP)
were, on Saturday, caught with the election materials.

Both the state’s
chapter of the ACN and Rashidi Ladoja, governorship candidate of the
Accord Party, have since called for fresh public display of the
register. They alleged that the incident showed the registers of 27
local governments out of the 33 in the state have been tampered with.

Olufemi Lanlehim,
the senatorial candidate of the ACN for Oyo Central, also condemned the
development, describing it as an attempt by the commission to
compromise the elections.

No breach in register

However, the
elections boss in the state, Mr. Adakeja, during a press briefing in
Ibadan yesterday, allayed the fears of the politicians, saying the
incident did not affect the register.

“On the issue of
tampering with voters’ register of 27 local government areas, I want to
state unequivocally that nothing of such happened,” he said.

“This allegation is
nothing but a figment of the imagination of the authors. Electronic
copies of the registration conducted here in Oyo State are already
deposited with the national headquarters of the commission. No name can
be added and none can be subtracted. We are not nursing fear of data
loss due to tampering. The officer involved in this unfortunate
incident is still with the police for necessary investigations.”

He, however,
assured that the commission will make the copies of the final register
available to political parties in Abuja before the elections, adding
that the party leaderships will make them available to states chapters.

He also spoke on the readiness of the commission for the polls.

“INEC is fully
prepared for the elections as it has already taken the delivery of some
of the materials to be used for the polls,” he said.

“Some of the National Youth Service Corps (NYSC) to be used as ad-hoc staff are currently undergoing training.”

Commenting on the
allegation that he had collected N20 million bribe from the state’s
governor, Adebayo Alao-Akala, to influence the election, the state INEC
boss, said ‘My clear response to this is the saying that comments are
free while facts are sacred”.

“The commission has
the mandate to conduct free, fair and credible elections,” he said. “We
are assuring the people of the state that it will do exactly that.”

The national
headquarters of INEC, on Tuesday seconded a director from Ibadan to
take over the ICT department of the state office following the arrest
of the INEC staff over the incident.

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Pfizer victims set for another test

Pfizer victims set for another test

Members of the Trovan Victims Forum in Kano State have finally resolved to submit themselves to a Pfizer-sponsored DNA test.

The resolution by
the Mustapha Maisikeli-led forum, that was initially opposed to the DNA
test, came after the withdrawal of a suit they instituted against
Pfizer last year. The Executive Secretary of the trust fund, David
Odiwo, made this known at a press conference in Kano yesterday, after a
meeting with Pfizer representatives and officials of the Kano State
government.

Aliyu Umar, the Kano State Attorney-General and Commissioner for Justice, stood in for the the state government.

Mr Odiwo said that
the victims are now ready to subject themselves to due process. He said
that in the next two weeks a team of experts from America will arrive
to resume the DNA exercise aborted due to court injunction engendered
by litigation. According to him, there are well over 600 people who
collected forms, but in reality the victims are 200, hence the conduct
of DNA test to ascertain true claimants.

Mr Odiwo assured that immediately after the DNA test, results will
be announced and payment of compensation will commence, explaining that
the healthcare centre located at Dawakin-Kudu area is expected to
operate autonomous, just like the one in Uganda is being run. He
explained that the essence of running the health care centre was aimed
at attracting funds and sponsorship from foreign donors.

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‘Party primaries were massively rigged’

‘Party primaries were massively rigged’

The recently
concluded primary elections, which produced candidates representing the
various political parties for the April general elections, were
severally manipulated and massively rigged, the Edo State residence
electoral commissioner, Rose Obuoforibo, said yesterday in Benin City.

Speaking at an
interactive session with party leaders yesterday, she stated that
though the electoral body was an observer to the primaries, some of
them were already concluded with pre-determined results written before
its officials could arrive at the venue of the primaries.

Mrs. Obuoforibo,
however, said that since it was an observer to the primary elections,
it lacked the power to indict those involved in perpetrating electoral
malpractice, since primary election was a political party affair,

“We, however, made reports of our observations to the appropriate quarters,” she said.

She also explained
the procedures involved in the Modified Open Ballot System, which INEC
has adopted for the April election, pointing out that in polling units
where the number of votes exceeds the total number of accredited
voters, result would be cancelled and fresh election conducted.

Adequate monitoring

She revealed that
the electoral body would make use of surveillance cameras during the
April election to capture events at each voting centre, including the
activities of unscrupulous elements who might be bent on discrediting
the elections.

“Some 21 political
parties would be participating in the elections in Edo State, which has
2629 polling units and 192 collation centres,” she said.

The Edo electoral
official further stated that training of ad-hoc staff was in progress,
adding that machineries have been put in place to meet the shortfall in
staffing due to inadequate number of youth corps members.

Stressing that the
commission was doing everything within its power to correct the lapses
in past elections, Mrs. Obuoforibo called for the support of political
leaders to ensure free, fair and credible polls.

The interaction,
which featured question and answer session, was attended by
representatives of various securities agencies, politicians, civil
society groups, and the media.

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Finance group to invest N112.5b in Union Bank

Finance group to invest N112.5b in Union Bank

Union Bank has signed a memorandum of Agreement (MOA) with the African Capital Alliance Consortium (ACA Consortium ) to invest N112.5 billion ($750 million) in the bank. This is sequel to the earlier announcement that the bank had entered into negotiation with a core investor.

A release from the bank signed by its spokesperson, Francis Barde, added that the MOA will in the main, provide a framework for the process by which the bank will be recapitalised.

“However, the entire process will be subject to the approval of the bank’s shareholders, the Central Bank of Nigeria (CBN), the Securities and Exchange Commission, the Nigerian Stock Exchange, and the Federal High Court,” Mr. Barde further said.

The ACA Consortium is a group of institutional investors led by African Capital Alliance (ACA), a leading independent private equity firm investing in West Africa, principally in Nigeria and Gulf of Guinea.

The ACA Consortium was founded in 1997 with a mission to build Africa’s premier private equity investment firm by mobilising capital, technology, and management resources from local and international sources to unlock Africa’s private sector potential.

The ACA Consortium, which will invest as Union Global Partners Limited, consists of ACA B-Holding Limited, (comprising an ACA managed fund, FMO Netherlands, an international development financial institution, and other co-investors), TRG Management LLP, The Keffi GroupVIII LLC (comprising the Keffi group and other United States-based institutional investors), ABC Holdings Limited (Bank of Botswana) and the Discovery Group.

Status enhancement

The bank said its recapitalisation by the ACA Consortium will enhance its liquidity, corporate governance, and capital adequacy and restore its strong competitive position.

Union Bank is among the banks rescued in 2009 by the CBN, and the chief executive officers sacked. The regulator then injected about N120 billion to save the bank from imminent collapse.

At a meeting held with shareholders in October, the various interest groups in Union Bank agreed that the management should pursue its recapitalisation plans in order to restore the bank to its prime position in the Nigerian banking industry. They agreed that the new core investor should have been in existence for years, with known financial pedigree and global clout that will give the bank leverage in the industry.

“The forum also suggested that the board and management should involve credible shareholders with substantial holdings to be part of the engagement processes with interested investors,” according to a statement signed by Mr. Barde.

This capital injection is so far the most outstanding progress in the effort of the Central Bank of Nigeria to get new core investors for the rescued banks.

Apart from Afribank, which announced the signing of memorandum of understanding (MoU) recently, none of the five other rescued banks have disclosed progress in its agreement with new core investors.

The other banks namely Oceanic Bank, Intercontinental Bank, Bank PHB, Spring Bank, Finbank, Equitorial Trust Bank are yet to announce appreciable success.

Aggrieved shareholders of Bank PHB last week secured a court injunction against the planned sale of the bank to Habib Bank of Pakistan.

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Central Bank to curb currency speculation

Central Bank to curb currency speculation

As part of efforts to reduce pressure on the naira, the Central Bank of Nigeria (CBN) will today commence the sale of foreign exchange forwards. The sale was supposed to have commenced last Tuesday but had to be postponed due to the introduction of reserve averaging, which was introduced on March 9.

A statement by Mohammed Abdullahi, CBN spokesperson, while explaining the development on the reserve averaging, said, “Being new to the Deposit Money Banks, they require some time to fully digest it.”

A currency forwards market allows traders to lock in the price at which an entity can buy or sell a currency on a future date. In currency forward contracts, the contract holders are obligated to buy or sell the currency at a specified price, at a specified quantity, and on a specified future date. These contracts cannot be transferred.

Market is ready for it

Akinsowon Dawodu, president of the Financial Market Dealers Association (FMDA), believes it is a good idea, if only the CBN can pull it off successfully.

“Consumers are keen and will be glad to have hedging options. The market is ready for it and I think it will depend on its implementation,” Mr. Dawodu said.

He said the efficiency will determine its outcome, going forward. “The effect should reduce some of the panic buying that sometimes arises in the foreign exchange market and in so doing, it will relieve some of the occasional periodic pressure that the naira finds itself under. In the long run, it should help achieve the aim of exchange rate stability,” he added.

He said the introduction would give customers options to hedge against foreign currency exposure, “which should translate to healthier economic activities and better planning on the part of customers.”

According to guidelines recently released in January by the CBN on forwards trading, all hedge transactions with the customers must be backed by trade (visible and invisible) transactions.

“The maximum tenor allowed for foreign exchange forwards and by implication foreign exchange swaps and cross-currency Interest Rate Swaps is now extended to five (5) years. Authorised Dealers may seek specific approval for longer tenors,” the guideline stated.

According to Mr. Dawodu, the swap option will be useful for corporates, as a five-year requirement would allow market to hedge their exposures further into the future. “In practical use would be for a customer who needs a five-year dollar loan but has naira. He could swap his naira for dollar and pay interest, which will be set every quarter over the period,” he further said.

Razia Khan, regional head of Research, Africa, Global Research at Standard Chartered Bank in London, said the huge spending ahead of the elections next month has been a factor in the strength of demand for foreign exchange.

“For now, we do not expect sustained tightening beyond that level, but much depends on how easily demand for foreign exchange is,” Ms. Khan said.

According to the CBN guideline, all foreign exchange forwards bought from the CBN are not transferable in the inter-bank market while authorised dealers are expected to bid on behalf of their customers. This is in order to discourage round tripping.

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Exchange strengthens penalties for errant firm

Exchange strengthens penalties for errant firm

To strengthen its existing rules, the council of the Nigerian Stock Exchange (NSE) has approved “certain penalties” for dealing with members who violate market rules governing their operations.

The NSE, in a circular to all member firms said, “At its meeting held on 16th March, 2011, the Council of the Exchange approved certain penalties for breach of the Rules and Regulations Governing Dealing Members (Rules).”

The Exchange said it has presented “an exposure draft of the recommended penalties” to market dealers for comments and contributions from last Friday to the 25th of March, adding that “implementation of the recommended penalties will take effect after a review of all comments and contributions.”

Some of the recommended penalties in the draft include issues on unauthorised sale securities, verification of shares in connivance with another, misappropriation of funds, third party transactions, and maintenance of clients’ accounts.

Others include issues on appointment of a compliance officer, rendition of financial statements, and extension of time for submission of annual financial statements.

Sale of fake securities

On the issue of unauthorised sale securities, the NSE said:

“In no circumstances shall a dealing member that sells securities without the authorisation of the owner be permitted to keep any benefits accruing from such sales, including but not limited to bonuses, rights, cash dividends, capital appreciation, and any profit whatsoever.”

It added that a dealing member that sells securities without the authorisation of the owner shall “be required to buy back the securities; and where the sale transaction is N5 million and below in value, be liable to pay a fine of N100,000 and N5,000 for every day from the day of the unauthorised sale until the day the dealing member completes buying back the shares for the owner.

“Or where the sale transaction is above N5 million in value or the dealing member had engaged in such unauthorised sale of securities on a previous occasion, shall have its dealing licence withdrawn by the Council of the Exchange and shall in addition pay a fine of N100,000 and N5,000 for every day from the day of the unauthorised sale until the day the dealing member completes buying back the shares for the owner.”

However, it said that “no dealing member shall have its licence withdrawn unless the Disciplinary Committee of Council has made a finding that the dealing member engaged in the unauthorised sale of securities and has made a recommendation to Council that the licence should be so withdrawn, provided always that during the pendency of any investigative or disciplinary proceedings, the Dealing Member shall be suspended from trading.”

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Strong oil prices trigger fear of fiscal indiscipline.

Strong oil prices trigger fear of fiscal indiscipline.

Analysts have warned against financial indiscipline in the corridors of power. Speaking against the backdrop of the increase of the benchmark for oil price in the budget last week, they cautioned against fiscal indiscipline.

According to Yvonne Mhango, an analyst at Renaissance Capital, an investment bank, “Strong oil price may lead to fiscal indiscipline. The Senate passed a N4.972 trillion 2011 budget on 16 March 2011, which is almost 20 per cent bigger than that proposed in December 2010. Strengthening fiscal revenue, owing to a high oil price, and the fear that when new governors enter office they will spend aggressively, have raised concerns about loose fiscal policy post-elections, which would be inflationary.”

“This conjecture all depends on how fiscally responsible the president-elect turns out to be. Nevertheless, as fiscal management tends to be less disciplined when revenue flows are buoyant, the risk to inflation is real, which suggests monetary policy should be tightened,” Ms. Mhango added.

The Senate passed the 2011 budget with a total projected spending of N4.97 trillion ($31.87 billion) on March 16, which is almost 20 per cent bigger than the proposed budget in December 2010.

This increase comes on the back of the stronger oil price, which led the Senate to pass the budget at a higher benchmark price of $75 per barrel (bbl), compared with $65/bbl initially.

Fall in windfall oil savings

Apart from the expected rise in inordinate spending, the increase in the benchmark oil price will also reduce the amount of funds that would otherwise have been saved from the strong oil price the nation is presently enjoying. Excesses of the oil windfall are supposed to have been channelled to the nation’s excess crude oil account and help boost the nation’s reserves.

Afrinvest, an investment and finance analysis firm, said the increase in oil price benchmark to $75.0 compared to the proposed figure of $65.0 while maintaining a production level of 2.3mbpd, implies that the rise in total spending is predicated on the bullish outlook for oil.

“This also suggests that windfall oil savings may be lower than proposed, with impact on the potential sources of funds for the Sovereign Wealth Fund,” the firm stated in a report titled ‘Nigeria’s 2011 Budget Figures’.

However, despite the expected increase in fiscal deficit, experts believe the major concern still lies in the economy’s vulnerability to oil price shocks as government revenue continues to be hinged on petro-dollar inflows.

The budget

The approved budget shows a 17.9 per cent increase compared to the proposed budget, but a 5.3 per cent reduction compared to the total approved spending of N5.25 trillion ($33.67 billionn, including supplementary appropriation) for the 2010 fiscal year.

The budget allocates 31.4 per cent of total spending to capital expenditure, lower than 37.9 per cent for 2010, while the share of recurrent expenditure was higher than 62.1 per cent in the 2010.

Compared to the initial proposed figures, the approved budget shows a 55.4 per cent increase in capital expenditure and marginal reduction of 0.6 per cent in recurrent spending. However, there was a marked decrease of 21.6 per cent in capital spending, compared to 2010.

In terms of expenditure mix, the approved budget allocates 31.4 per cent of total spending to capital expenditure, higher than the initial proposed 23.8 per cent but lower than 37.9 per cent for 2010, while the share of recurrent expenditure was moved downwards from the proposed 76.2 per cent to 68.6 per cent, but higher than 62.1 per cent in the 2010.

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