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Irregularities trail botched polls in Ebonyi

Irregularities trail botched polls in Ebonyi

Last Saturday’s
postponed National Assembly Election that was characterized by
irregularities, violence and non-availability of sensitive electoral
materials had recorded violence in some area councils of Ebonyi State
resulting in the killing of two agents of the ruling Peoples Democratic
Party (PDP) in Ezza South.

Sunday Nwani Egede,
a former councillor and Iruks Nwankwoegu, a PDP agent, were alleged to
have been killed by thugs believed to be loyal to the opposition All
Nigerian Peoples Party (ANPP).

The ANPP supporters
were said to have been provoked by the killing of six people perceived
to be opposed to the ruling PDP in the state.

A former local
government chairman in the area was said to have led irate mobs who
attacked and clubbed Mr. Egede to death. The suspect has been arrested
by the police.

Lazarus Obehi, the
chairman of Ezza South, the violence had “led to a state of insecurity
causing people to desert the pooling booths and run for their dear
lives. Many are afraid of being victim of police indiscriminate arrest.

“People of Ntezi
and Amuzu where we have three pooling units with eligible voter
numbering over 2000 have deserted their homes and ran into hiding for
insecurity. Instead of coming out to exercise their franchise and vote
to candidates of their choice, the sporadic shooting experienced early
hours of Friday and today (Saturday) have put people on their tolls.

“They are now scare to the marrows, they abandoned their houses and ram away for their dear lives”, Mr. Obehi said.

Ben Njoku, the
Electoral Officer of Ezza South who was met sorting electoral materials
at the council headquarters also lamented that “the development the
development has made party officials to be on my neck. They have
grumbled as if it was my fault”.

In Afikpo South
local government area, Cornelius Ani Sunday, the collection officer of
Amuro/Mgbom ward decried that some Youth Corps members and other ad-hoc
staff trained as presiding officers against seven pooling units in the
wars failed to turn up for undisclosed reasons.

He said; “Am not
authorized to recruit new people who are not trained in this
circumstance to replace the Corps members for the conduct of the
election. Look at the electoral materials meant for the pooling units
still here even as at 2.00pm”.

Snatched materials

At Akanto ward in
Amasiri, also in Afikpo South local government, electoral materials
meant for four polling units in the area were alleged to have been
snatched by thugs who claim INEC was yet to pay them the last
registration of voters exercise remuneration.

Paul Agha, the Coordinator, Amasiri Development Centre vowed to recover the snatched electoral materials.

“This is the
problem we found ourselves in, INEC had good plans for the election,
but the execution is poor, it has been marred by irregularities
nationwide.”

At Uburu in Ohaozara, the country home of both the ANPP National
chairman Ogbonnaya Onu and the PDP deputy gubernatorial candidate Dave
Umahi, suspected PDP supporters invaded the neighbourhood and family
compounds of ANPP state Assembly candidate and that of his counterpart
vying for the House of Representatives shooting sporadically. A female
student of the School of Nursing of the Presbyterian Joint Hospital,
Uburu, was shot during the violence.

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Opposition party accuses electoral officials of partisanship

Opposition party accuses electoral officials of partisanship

The decision to
shift the date of the elections by the Independent National Electoral
Commission (INEC) has been hailed by some political parties, which
described the move as a way of saving the country from further
embarrassment.

However, others
have insisted that INEC chairman, Attahiru Jega should resign his
appointment for allegedly embarrassing the nation. The electoral body
yesterday shifted by one week all the elections following the
cancellation of the National Assembly elections last Saturday over
shortage of election materials across the country.

The acting national
chairman of the Peoples Democratic Party (PDP), Haliru Bello Mohammed
hailed the decision to shift the polls and urged the party’s supporters
to remain calm. “We’ll continue to support INEC in delivering free,
fair and credible elections. We need it as it aligns with our political
objective of promoting and establishing political stability in the
country and fostering national integration,” Mr. Mohammed said. “Our
party stands to gain immensely in an atmosphere of free, fair and
credible elections. Therefore no sacrifice is too much for our party in
seeing our elections meet globally-acceptable standards.”

The Congress for
Progressive Change (CPC) said the postponement was a welcome decision
because it will enable INEC to sort out its logistical problems. The
national publicity secretary of the party, Rotimi Fashakin, however
regretted the cancellation of the polls. “We welcome the decision
because we believe it will give INEC enough time to sort out its
logistical nightmares. We believe that it will also help to have
credible polls. We’re ready to go into the polls on Saturday,” he told
NEXT in a telephone interview last night.

Mr. Fashakin
condemned calls for Mr Jega’s resignation, saying instead of that , all
Nigerians should resolve to assist him succeed in his assignment. He
recalled that the electoral bosshad in the past courageously stood on
the path of equity and fairness going by some decision he took.

The spokesman of
the All Nigeria Peoples Party (ANPP), Emma Eneukwu said the party has
been vindicated because it was the first to reject the Monday date
earlier fixed by INEC after the parliamentary elections had been
cancelled. He said the party had initially demanded that the elections
be held on the same day with the presidential election, but that it is
satisfied with the new dates.

“We had earlier
aligned ourselves with those aid that the National Assembly elections
should be held the same day with the presidential election the reason
being that it will not only save cost, it will ensure that the
elections are conducted freely and fairly,” Mr. Eneukwu said. “The
nation has taken time and resources to prepare for this election and so
it is important that that everything is done properly. Let’s not
hurriedly go into this exercise and forget that if it is not credible,
we have all wasted our time. Parties also need time to prepare again
given the cost of logistics and other things involved.”

The national
chairman of the Labour Party (LP), Dan Nwanayanwu also hailed the
decision to postpone the elections, insisting that it will restore the
confidence of the electorate in the process. Mr. Nwanyanwu said the
political parties told INEC in clear terms at a meeting yesterday in
Abuja that the Monday date earlier fixed for the parliamentary polls
was not feasible and that the new date will allow the commission to
resolve all the problems associated with the process. He advised Mr.
Jega to put all mechanism in place to reassure Nigerians that the
process will be credible so as to avoid apathy on the election day.

False steps

Meanwhile, the
Nigerian Peoples Congress (NPC), on Sunday, asked Mr. Jega to resign
his appointment following his inability to conduct last Saturday
elections, adding that it is the only way he can save his image and the
nation further embarrassment. “It has become necessary for the
Independent National Electoral Commission chairman, Attahiru Jega to
resign following his inability to conduct the National Assembly
elections last Saturday. This is the only way he can save his image and
save the nation further embarrassment,” the party said in a statement
by its national chairman, Ngozi Emioma.

The opposition
party recalled that only last Friday, the INEC boss had assured the
nation and the international community that the commission was ready
for the NASS elections only to announce that the elections had been
postponed due to late arrival of result sheets from Japan. The
cancellation, NPC said, is a national disaster that has once more
proved that Mr. Jega is not ready to conduct transparent polls.

According to the
party, it was wrong for the INEC chairman to unilaterally fix the
Monday date for the election without consulting the political parties.

“To unilaterally
fix Monday, April 4 for the NASS elections without consulting political
parties and other stakeholders shows that Jega is not serious,” the
party said.

The NPC warned the commission “not to take Nigerians for a ride,”
adding that the electoral boss has demoralised the electorate and the
country. “He had earlier made a number of false steps which we strongly
condemned and urged him to sit up and do the right thing. This time he
has ridiculed the national before the whole world. We urge him to
resign immediately.”

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‘Don’t disappoint us again’

‘Don’t disappoint us again’

Political leaders,
including the Ondo State Governor, Olusegun Mimiko have called on the
leadership of the Independent National Electoral Commission (INEC) not
to disappoint Nigerians when next it holds the rescheduled elections.

Mr. Mimiko, who
spoke in Ondo town, said the disappointment of last Saturday was morale
dampening. “A lot of activities and resources have been put into it. We
will wait. There is nothing anybody can do about that,” he said. “INEC
should go back to the drawing board and ensure that there won’t be any
excuse”.

The Former
Secretary to the Federation, Olu Falae commended the chairman of the
electoral body for his coming out to announce the postponement of the
election. He, however called for compensation for political parties
which he said must have lost fortunes due to the postponement of the
election. He said his party, The Socio Democratic Mega Party (SDMP),
disbursed about N5m to party agents across the country.

Joseph Sangosanya,
a civil society activist, said on Sunday in Jos that Mr. Jega’s
attitude had shown that ‘the era of impunity is over.’ “Since Jega can
come out to accept responsibility and publicly apologise to Nigerians,
it shows that the era of impunity is gradually coming to an end in this
country,” he said. “What Jega has done takes some level of humility and
this is just one of the proofs that our democracy is really working and
we should all support the process.” He said it is regrettable that the
Nigerian Security and Minting Company could not print the country’s
currencies and ballot papers. “For Nigeria, which prides itself as the
giant of Africa, to be printing ballot papers and currencies from
another country is a national security threat,” he said. “These are our
symbols of sovereignty and if these basic things are still being
printed outside at this age, how do we intend to defend ourselves
during war?”

Aniekan Akpan,
Chairman of ACN in the state, said INEC was out to cause confusion that
would possibly invalidate the votes in favour of the ruling party. He
pinned his argument on the basis that on the ballot paper, the two
parties of AC and ACN is represented with the same symbol of the broom;
whereas the AC has folded into ACN. “If you look at the ballot paper,
there are two parties, AC and ACN but AC has been transformed into ACN.
There is nothing as AC as a party. They have the same symbol of broom.
Now the question is during the ballot, which one will the electorate
vote? The reason is to create confusion,” he said.

Missing party logo

The Ogun State
Chapter of National Conscience Party {NCP} raised alarm that the
party’s logo is not in the ballot papers and this has to be fixed ahead
of the election.

The governorship
candidate of the party, Lanre Banjo, said the discovery was made when
he went to vote in his polling booth in Sagamu town, just before the
postponement of the National Assembly election.

He said the
development amounts to a setback for his party, which would not be
taken lightly. ‘‘I have just submitted a petition on this to the INEC
Resident Electoral Commissioner, and waiting for the next line of
action, all what I know is that we cannot afford not to participate in
the election, we would not accept lapses which will rob us off our
civic rights’, the party chieftain declared Similarly, a candidate of
the All Nigeria Peoples Party {ANPP}, Ayo Akanbi also raised alarm over
non-existence of the party logo in the ballot papers. ‘‘I have
complained to the electoral officers in Ota and also the leadership of
our party at the state level with assurance that the issue will be
taken up,’ he said.

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‘You cannot exclude people from party politics’

‘You cannot exclude people from party politics’

Dealing with politicians with controversial images

Anti-corruption fight is just one
out of several things I have done in my life. But I have done more than
that in my life. However, getting the chance to fight corruption, to
set up EFCC, I take it as one of the things I derive pride in. But
before that I was a lawyer, a prosecutor and member of an economic
management team. I did my job then, to the best of my ability. I left
it like that and I am a different person now. I am trying to get into
public service through elections. There is no other way to do it other
than to belong to a political party. I don’t want to belong to the PDP
because I know they are the problem of this country. My mission in
Action Congress of Nigeria is that I want to participate to re-build my
country. I am honest about it. We should never judge people on the
basis of what really happened before and say because we don’t trust you
or because of your character, you are excluded from Nigeria. We should
know that every one person would have something to contribute. At the
same time, it does not necessary mean that I am looking to work with
any bad person.

Nothing against Tinubu

I never prosecuted Tinubu, George
Akume, and all the other chieftains of my party. Ahmed Tinubu did not
do anything wrong at the time when I was there as EFCC boss, for me to
charge him to court. But because he fought PDP so badly, they want to
crucify him. In politics, you do not chose those who you can be with.
It has never happened anywhere in the world. There are politicians
today in Nigeria that I respect. Take, for example, Buhari. His own
campaign manager, Haruna, he put him in jail for three years. I worked
as an anti-corruption person in Nigeria. I know those who are corrupt.
I know those who stole money in our country. Secondly politics is about
people and should be all-inclusive. I don’t have the arrogance to feel
that any other person is less than me. I respect people and I recognize
people generally. It is their constitutional right to belong to a
political party. I cannot say just because I am a member of a political
party, I would therefore determine every single member of that
political party. It is humanly impossible. It is unconstitutional and
it is not right. If we continue to talk about others and all these
people you mentioned who are in my party, Ahmed Tinubu, Jolly Nyame,
George Akume, I think it is a little unfair to me. They have hammered
me on this man (Ahmed Tinubu0 and they could not get evidence and they
continue to shift the goalpost. I don’t know who they are going to
bring again very soon. Those impugning my political association with
some chieftains of the party, are carrying out a disservice to this
country because, for the first time, a chance will come to release
Nigerians from PDP’s bad governance, mismanagement and incompetence.

His apprehension about the elections

I’m worried about the behaviour
and attitude of PDP and they are bringing government agencies and
institutions to misuse them. The military should not allow it and
neither should the police allow themselves to be misused by the PDP
because they have no benefits out of it. PDP is desperate, we know that
INEC is resisting them. INEC for the first time is saying no, we are
not going to be used. I’m calling on the military to also say no, we
are not going to be used.

I am calling on the police to
stand on the side of Nigerians. Everybody including the military and
police must stand tall. Let Nigerians be the winners.

Financing his campaign

Campaign is about people. I don’t
go about throwing money like the PDP that spends over a billion every
day. These are monies supposedly meant for Nigerians, it is our own
money. Buhari has been running his campaign since 2002. Buhari is never
a rich person, but he has been funding his campaign. I’m not a rich
person and I am also doing the same thing. The same thing with Shagari
and the late Sardauna, Ahmed Bello. We have honest people who do not
have money but have been running their campaigns. And they have been
successful. Nuhu Ribadu has just entered in the continuation of that
tradition. Those who are using money to do what they like, go and ask
them.

His election plan

We would change our country and we
will relieve the country from the burden of mismanagement and
maladministration the PDP has lead us into. We will address the issue
of poverty, diversify the economy and convert it from oil dependence to
non-oil dependent economy that would create jobs for everyone who wants
to work.

My administration would reverse
this wastage that has taking place, where 75 percent of our money goes
into running of the government. We will cut that and put a lot of those
resources into growth and development, instead of just servicing the
government.

We will stop this nonsense that PDP brought to the country,
kidnapping, bombing, Boko Haram. They are all product of PDP, because
we did not know all that before. We will make Nigeria safe and secure.
Fortunately, It’s an area that I am fairly well grounded. I know
security and law enforcement. We will provide safety for our country
and we will never rest until we do those things. We are going to make
sure that we run a government that is transparent and accountable.

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ABUJA HEARTBEAT: Season of protest

ABUJA HEARTBEAT: Season of protest

To be or not to be?

That is the question that leaders the world over who have stayed more
than two decades in power must be asking themselves now, after the
avalanche of protests in the Arab world has crumbled otherwise
untouchable demi-gods. Of course, Muammar Gadaffi by now should know
that his days are numbered, not only in Libya but globally. He must be
beginning to realise that he is not invincible and so like the
unrepentant terrorist, is determined to take as many people as possible
with him.

During one of those
sessions where big issues are thrashed endlessly – sometimes leading to
disputes that will not benefit any of us, as the ‘big-big ogas’ being
argued about really do not care and do not know if we ‘small-small
people’ exist – somebody said, “If third term had succeeded, Nigerians
would have seized these worldwide protests as an opportunity to sweep
OBJ out”. Obasanjo did not succeed with that heinous plan and so we
really cannot say if my friend predicted correctly how Nigerians would
have reacted.

Everybody talked
about different protests taking place in their own domain and a good
friend of mine referred to a lady that could not recite the national
anthem but was still given the green light to go on being our
Ambassador without anybody protesting. I quickly cut in and talked
about the protest that is gathering momentum in the hushed voices of
entertainers.

Some comedians and
musicians asked me if entertainers could not file out and begin to
advocate for a Bank of Entertainment, where individuals involved could
go and access loans like is done in the Bank of Industry or Bank of
Agriculture.

One of the veterans
in the business complained about the bank he has been with for donkey
years refusing to give him a loan of just ₦300, 000 to prosecute a
small entertainment project that could employ about 10 youth monthly,
if actualised. They told him that the flow of cash in his account was
not consistent, so they could not give him the loan. He really was just
grumbling because if he takes up a placard who would listen to him?
Well, I have heard his cry that is why you are reading his protest.

The protest train
was passing by and everybody had to say something, so one woman talked
about how her children decided to protest by keeping quiet inside the
car for the rest of the journey home after school, when she went to
pick them up. After careful and very diplomatic insistence, she got the
youngest who was a five-year-old to talk and he said if their mummy
does not buy them ice cream from the sellers hanging around their
school gate, especially in this hot Abuja afternoon sun, like the
parents of their friends in class are wont to do, they would no longer
be chatting with her in the car on their way home from school.
According to my friend, “Dis kind of protest don wear face cap.”

The young lady said
she quickly had to put on her thinking cap in order to douse the
protest and kill that spirit once and for all. She said she told her
children that she has prepared their favourite meal at home as well as
restocked her fridge with their best fruit juice and she ended with
“all this ice-cream that is being sold on bicycles by these men by
their school gate are meant for the less privileged” adding that proper
food and juice meant for good children like them was waiting for at
home. All the placards on the faces of her children were dropped.

The protest ignited
under my nose was set upon me by the teachers in my children’s school
and whereas I was able to cleverly instruct my three children above
eight years, my little boy who just turned five came home asking
different questions at different intervals as the spirit gave him
remembrance.

“Daddy, how old are
you? What is your occupation? How much do you earn in a year? Do you
steal government money? Do you think I will still love you if you are
caught stealing government’s money? If I call you a thief, will you be
mad at me?” I wanted to make him know that indeed, I am already mad at
that teacher who put all these ideas in the mind of a little boy.

While I was trying
to protest to my wife about the little lad, the boy went to his school
bag and brought the written questions and they were his assignment for
the weekend. So are you going to answer the protesting boy or even the
teacher? Or are you not aware that the freedom of information bill has
scaled all huddles?

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‘Nigeria is capable of conducting credible elections’

‘Nigeria is capable of conducting credible elections’

President Goodluck Jonathan
yesterday said he is confident that Nigeria will conduct credible
elections despite the postponement of Saturday’s polls.

Mr Jonathan, who
addressed journalists in his home town, Otuoke, Bayelsa State, after
his inability to complete his accreditation due to non-availability of
officials of the Independent National Electoral Commission (INEC) and
voting materials, appealed to Nigerians to bear with the electoral body.

“If we must do
something, it is better to delay and do it well,” he said in reference
to INEC’s postponement of the National Assembly elections till Monday,
April 4.

Mr. Jonathan, who
commended the enthusiasm and commitment displayed by Nigerians who
trooped out and even travelled far to vote in spite of the
restrictions, pleaded with them to show understanding by enduring till
Monday.

“It is part of the
sacrifices required to conduct credible polls,” he said, saying he was
returning to Abuja but would get back to his village again to vote on
Monday.

On his part, Kano
State governor and presidential candidate of the All Nigeria Peoples
Party, Ibrahim Shekarau expressed shock with the postponement. He also
called on Nigerians not to relent but still come out on Monday to cast
their votes.

Former Lagos State
governor and opposition ACN leader, Bola Tinubu however called for the
resignation of President Goodluck Jonathan. Mr. Tinubu, blamed the
problem on alleged interference of Mr. Jonathan’s cronies and federal
government agencies in the activities of the electoral body.

“Nigerians have
the right to vote and be voted for, and if you fail to achieve that
goal, the federal government should resign, period,” he said.

Femi Falana, a
Lagos–based lawyer, described the postponement of the election as a
national disgrace. He said the postponement is a sign that the nation
is still underdeveloped. According to him, importing election material
from another country is embarrassing.

He also doubted whether INEC will be able to pull off the election on the rescheduled date.

The Labour Party
candidate for Ondo South Senatorial District, Boluwaji Kunlere,
yesterday said the postponement of the election was worse than the
annulment of the 1993 election.

Mr Kunlere, who
spoke in Okitipupa Council, said the action of INEC has killed the
morale of Nigerians who came out to vote, noting that only God would
save Nigeria because, according to him, huge resources had been
committed to the election.

Jega did no wrong

While expressing
slight disappointment at the postponement of the election, Project 2011
SwiftCount, a coalition of civil society organisations spoke out in
support of Mr. Jega.

“Project 2011
Swift Count are peeved that today’s election could not be completed as
planned. But we support INEC Chairman Attahiru Jega’s difficult and
courageous decision to postpone the election until Monday. We believe
the decision is in the best interest of the people of Nigeria”, the
group states in a statement. “This had to be a very difficult decision
and it should have been made earlier, but it is the right decision for
Nigeria in the circumstances.”

Civil Right
Congress, a socio-democracy group has also supported the postponement.
President of the group, Shehu Sani, said his group’s observations show
that the elections was marred by problems of late delivery of
materials.

“An election
cannot be credible until it is conclusive and all inclusive. The
announced cancellation of the elections by INEC Chairman is inevitable
but could have been avoided,” he said.

However, he said, it will affect the morale and enthusiasm of Nigerians toward the election.

The Movement for
Democratic Change (MDS) also described the postponement as a “bitter
pill for credible process”. In a statement issued yesterday, the group
noted that “the decision was the best, given the challenges faced by
the commission if the sanctity of the electoral process were to be
protected”.

Politicians in
Bauchi State have condemned the postponement of the elections. The
National Publicity Secretary of ANPP, Comrade Muhammed Sabo said it was
unfortunate that INEC cancelled the elections.

Mr Sabo, who is
also the ANPP Candidate for the House of Representatives for Bauchi
Federal Constituency, described the action by INEC as “disappointing,
embarrassing and strange not only to the country but the country’s
image abroad”.

He said that the
postponement of the elections raised serious and critical questions on
whether Mr. Jega is fully prepared, determined, transparent and
credible to conduct free and fair elections in the country.

In his reaction, Bashir Othman Tofa of the ANPP said, “The
government must, as a matter of urgency, institute a high-powered
commission of inquiry into this shameful outing of the INEC. Those
found responsible, no matter how highly placed, must suffer the
consequences. Is this the new INEC that will ensure credible elections?
Our hopes are misplaced and our confidence shattered.”

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Better late than flawed

Better late than flawed

Attahiru
Jega, the Chairman of the Independent National Electoral Commission is
receiving a lot of flak, and many will say rightfully so, for the
fiasco which unfolded on Saturday. He postponed the National Assembly
election because according to him, an “unanticipated emergency we have
experienced with late arrival of result sheets in many parts of the
country. The result sheets are central to the elections and their
integrity.’’

The electoral body
appears to have had serious logistic failures that meant voting
materials like ballot papers and score sheets didn’t reach their
destination on time. This is the official explanation. However, in
Nigeria nothing is ever that straight forward. Theories abound about
the real reasons for the postponement. They include a conspiracy theory
that suggests Mr. Jega is being sabotaged by his own staff who have
been ‘settled’ so he can be disgraced and forced to resign; to rumours
about governors who hijacked election materials forcing Mr. Jega to
first consider postponing election in a few states, and then nationwide
because it became clear that theft of electoral material was once more
widespread than INEC first realised.

There is also a
rumour that this is a ploy by incumbent President Goodluck Jonathan to
postpone elections to extend his tenure of office. Then there are those
who say that the President has no hand in the fiasco unfolding but will
get blamed anyway because that is the nature of things in this country.

It really shouldn’t
matter which of these stories we believe. Whether it is the official
version by INEC or the many other stories making the rounds. What is
clear is that Mr. Jega and INEC were certain that under the
circumstances they could not hold credible polls. So should they have
gone ahead and conducted the elections anyway? It is a tough question
and the decision to postpone was probably not taken lightly.

This is probably
one of the most anticipated election in Nigeria in recent times, an
election that has swallowed billions and billions of naira. This is an
umpire that has put his personal integrity on the line. A man who has
promised Nigerians in no uncertain terms that he will deliver the
fairest elections they have ever seen.

On the balance, it
would appear Mr. Jega and his team made the right decision. And there
can be no doubt that it was a bold and courageous move. It isn’t easy
to admit failure especially on such a national scale and for an
assignment of such importance. It might have been easier for Mr. Jega
to allow the elections to take place, flawed as the process was and try
to wiggle his way out of trouble later.

Whatever the issues
are that led to this debacle; it is hard to see how the electoral body
can fix them before tomorrow. Nonetheless, many Nigerians appear
prepared to give Mr. Jega and INEC the benefit of the doubt. So the
electoral body should be praying for a miracle because if they are
unable to give Nigerians the elections they want and deserve tomorrow,
many will be demanding for someone’s head and that would be right.

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Can Jega take us to the Promised Land?

Can Jega take us to the Promised Land?

“The office of the INEC chairman is a
mausoleum of reputations. Hope Jega’s has not begun the journey to
embalmment,” a Nigerian commentator said of Saturday’s election
postponement.

The news first came via an
Ibadan-based journalist. He informed his editors in Lagos, that a
source told him, that INEC will postpone the National Assembly
elections. One of the editors dismissed it outrightly, saying there
would have been a formal announcement and the commission cannot do
that, “it would be disastrous,” he concluded.

But the other editors started to work
the phones. And bit by bit, information kept trickling in that the
elections would be cancelled. First, it was some parts of the Federal
Capital Territory. Then, Niger, Edo, Plateau, Ekiti, Rivers, and Taraba
States.

Some minutes after noon, the INEC big
masquerade, Attahiru Jega, in a press briefing, confirmed what some
Nigerians had suspected. The elections, he said, have been postponed
till Monday, April 4, while offering his apologies and regrets.

The initial reports across the country
were basically that of lateness. Anxious voters all ready and waiting
to exercise their franchise, but INEC officials were not in sight. A
drive across Oshodi-Isolo local government area of Lagos State between
9 and 9:30am revealed committed voters and security agents waiting on
the commission. Young men played football to while away the time and
accreditation of voters did not commence on time.

Mr. Jega’s excuse was that result
sheets were not ready for the elections. “The reason for this is the
unanticipated emergency we have experienced with late arrival of result
sheets in many parts of the country. The result sheets are central to
the elections and their integrity. Accordingly, in many places, our
officials have not reported at the polling units, making it now
difficult to implement the Modified Open Ballot procedure that we have
adopted,” the chairman said.

Mr. Jega assumed office in July 2010
and by August, the Senate approved N87.7 billion for INEC under his
watch; a situation that had never been witnessed before in the country.
The money was meant for vehicles, collapsible ballot boxes, voter
register review, hotel accommodation for state INEC electoral
commissioners, and other items. Mercifully, a further request for N6.6
billion last February to complete the voters’ registration that was
extended by a week, was turned down by the National Assembly.

Questions, more questions

As Nigerians debate the propriety or
otherwise of this postponement, there are many questions that ought to
be answered. The country was shut down yesterday and if the elections
will hold tomorrow, who bears the cost of tomorrow’s economic
paralysis? How true is it that some state governors’ attempts to
manipulate the elections prompted the non-availability of the result
sheets, thereby forcing a postponement? Is it better to suffer
postponement than to have elections fraught with irregularities? Will
anybody bear the cost of this late delivery, after all the money the
exercise has gulped?

The political science professor came
to office with a lot of goodwill, as nearly all Nigerians admitted he
is one of the best, for the thankless job of elections’ chief umpire.
Moreover, he was part of an electoral reform panel headed by former
Chief Justice Mohammed Uwais and the INEC job offered him a vantage
position to correct some of the ills the panel identified. But while
some Nigerians are still willing to give him the benefit of the doubt,
as seen in their comments after the postponement, will tomorrow’s
elections not witness similar hiccups? Is the commission truly ready
for the elections?

Good and credible election used to be regarded as a fanciful
concept, something beyond the reach of successive electoral bodies in
our country; can Attahiru Jega take us to the Promised Land?

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Analysis of performance of banks in 2010

Analysis of performance of banks in 2010

A few more banks have released their 2010 year end results, some of which have fallen below the expectation of industry watchers. However, the trend that was common among the institutions was the drop in earnings, due largely to the reduction in lending. Through a mixture of cost-cutting strategies and efficiency in deploying assets, most of the firms still posted impressive profits.

Diamond Bank posted a profit-before-tax of N4.227 billion from a loss of N12.4 billion in 2009, while profit after tax rose to N1.33 billion from a loss of N8.17 billion in 2009.

However, gross earnings were down 16 percent to N91 billion for the 12 months period ended 31 December, 2010 (from N108 billion, 12 month period ended 31 December 2009). Net interest income was also down 16 percent to N49.0 billion (from N42.2 billion in 2009).

The bank’s total assets down 9 percent to N594.8billion (from N650.4 billion in 2009), total loans to customers down 5 percent toN312.2 billion (from N329.8 billion in 2009), while customer deposits were down by 15 percent N412.0 billion (from N482.0 billion in 2009).

‘Nightmarish’ performance

Some finance experts have however, expressed disappointment at the bank’s figures, saying it is “much worse than expected.”

“This result pales substantially when stacked against our forecasts. Although gross earnings were 7.7 percent ahead of our forecast of N84.5 billion, both Profit Before Tax (PBT) and Profit After Tax (PAT) overwhelmingly under performed our forecasts of N10.2 billion and N7.1 billion by 53.3 percent and 81.2 percent respectively. We are constrained to call this a really poor bottom line performance. The bank, expectably, did not propose any corporate actions in the wake of what is a nightmarish performance,” Afrinvest, a finance firm, said.

Industry watchers say the bank might have had to take a substantially larger impairment in the form of provision for bad loans, given the really poor margins on display as they do not expect such a ‘massive’ deterioration in operating margins.

The bank’s officials declined to speak on the figures when contacted by our reporter, saying its reaction would be based on a statement it issued on Tuesday.

In the statement, Uzoma Dozie, ED Corporate Banking, Diamond Bank, said: “In compliance with our enhanced risk management policies, the Corporate Banking unit continued to unwind positions carried over from the economic slowdown in 2009. This has enhanced liquidity and reduced NPLs. Provisions are starting to come back to normal levels as the economy returns to its pre-2008 growth path. This bodes well for the unit as we take up new opportunities arising from telecoms and government infrastructure spending in 2011.”

Robust credit growth

In a similar industry move, First City Monument Bank said its pre-tax profit rose to N9.02 billion in 2010 from N856.6 million the previous year, and declared a N0.35 dividend per share while gross earnings rose to N62.67 billion from 35.79 billion naira in 2009, according to a Reuters report.

“In our view, a good set of results from FCMB, with the tax benefit being the single reason for our earnings estimate miss. The 2010 NIM (net interest margin) squeeze (which is the difference between interest income and interest expense as a percentage of assets reflects broader sector trends, while robust credit growth and cost control are encouraging, we think. It is also good to see asset quality stabilising” Renaissance Capital, an investment bank, said.

Ecobank Transnational Inc. (ETI) the parent company of the pan-African banking group also made its report for the year ended 31st December 2010 public last week.

The bank’s report showed a 4.6 percent decline in gross earnings to $1.1bn from the $1.2bn recorded in 2009. Profit before tax (PBT) surged by 67.3 percent to $169.0m from $101.1m, while profit after tax (PAT) more than doubled to $131.8m, 104.1 percent higher than the $64.6m posted in 2009.

“Gross Earnings fell 9.7 percent short of our projected $1.3bn, while both PBT and PAT fell short of our forecasts of $170.6m and $131.9m by 0.9 percent and 0.1 percent respectively. This impressive performance is in line with expectations, as we anticipated a substantial reduction in its cost of risk due to the debt clean-up activities of AMCON on its Nigerian subsidiary that accounted for as much as 70.0 percent ($98.0m) of the 24.0 percent increase to $140.0m in group provisions.” Afrinvest said.

Stanbic IBTC’s gross earnings in its 2010 year end report declined by 5.1 percent (from N59.8 billion to N56.7 billion), while PBT and PAT grew by 30.8 percent (from N10.3 billion to N13.5 billion) and 16.2 percent (from N8.1billion to N9.5 billion) respectively, when measured against the corresponding period in 2009.

On this, Afrinvest stated that the bank’s gross earnings decline could be attributed to its aggressive growth play on the Nigerian market that may have seen it give up some yield on interest bearing assets.

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Nigerians prepare for another budget imbroglio

Nigerians prepare for another budget imbroglio

The country appears set for another budget showdown as the executive and the legislature resume their long standing disagreement over budget figures. Finance minister, Olusegun Aganga said last week that the 2011 appropriation bill passed by the Senate is not “implementable” due to the alterations carried out by the lawmakers.

The Senate last week passed a budget of N4.972 trillion, N752 billion higher than the initial figure of N4.22 trillion submitted by President Goodluck Jonathan to a joint session of the National Assembly in December. The appropriation passed by the Senate was predicated on a benchmark of $75 per barrel of crude up from the $64.7 projected by the executive and a crude oil production of 2.3 million barrels per day.

The National Assembly jacked up its allocations for capital and recurrent expenditure by 52.2 percent from N111.24 billion to N232.74 billion, while reducing amount earmarked for debt servicing from N542.3 billion to N445.09 billion.

Mr Aganga recently expressed concern over the volume of deficit and the level of borrowing that this would trigger.

“The 2011 budget is supposed to signal the beginning of fiscal consolidation, but we now have another expansionary budget which is unimplementable. If we are to build our economy on a solid foundation and avoid the boom and burst of the past, it is critical that we embrace discipline in the way we manage public finances. We cannot continue like this,” the minister said.

“If you adopt pro-cyclical fiscal policies then you go into boom and burst all the time so you need to have consistent robust fiscal policies that are relevant to your economy. The level of recurrent expenditure is unsustainable. Unless we deal with that we cannot deal with the problem of allocation to capital projects.” He said a huge budget deficit would translate to government resorting to domestic borrowing, a situation which experts say would further crowd out the private sector from the bond market. “It is one of the reasons why we say we have to look at it again. We need to reduce borrowing and we need to improve the quality and efficiency of spending,” he said.

However, while the minister was lamenting the workability of the budget, the National Assembly is insisting that the budget should be implemented the way it has been passed. Chairman, House of Representatives Committee on Finance, John Enoh, was quoted as saying that no budget that was unimplementable provided the government had the political will and its agencies the requisite capacity to implement its provisions.

“If Aganga is talking about the Federal Government implementing the budget 100 percent, then he may have a point. But which of the budgets passed in the last 10 years has been fully implemented by the executive? ,” he was quoted to have said.

Private sector joins the fray

While the battle rages, the organised private sector has taken sides, on the ground that the economy has been at the receiving end of poorly crafted budgets over the years. Frank Nweke, director general of the Nigerian Economic Summit Group said it was no longer acceptable for the national assembly to stifle the other sectors of the economy.

“This is not acceptable. We recognise that the private sector must speak up. If it is necessary to institute legal action to seek interpretation of the constitution of this country as to who has legal powers to appropriate fund and whether the legislature has the power to distort the budget as it does each year, it is something that we are prepared to take up,” he further said.

He is not alone on this as the Institute of Directors (IoD) of Nigeria is also prepared to challenge the issue in the court. Chike Nwanze, president of the Institute said it was time the legislators begin to put the entire country into consideration before tinkering with the budget. “If we have to institute legal action, we are ready to consider that option,” Mr Nwanze said.

Opeyemi Agbaje, lawyer and senior consultant at Resources and Trust Company Limited, a strategy and business advisory firm said it was better for the executive to have this confrontation with the National Assembly once and for all. “Under Obasanjo, this was a recurring problem but in the end Obasanjo chose to implement only those portions of the budget he found acceptable. Yar’adua basically always allowed the NASS to have its way, leading to huge fiscal expansion between 2007 and 2010.” According to him, the constitution allows the previous year’s recurrent budget to operate for six months (till June 2011) so that the operations of government can continue in the event of non-passage of the budget. “It may also be useful if the Supreme Court resolves the legal duties and roles of the executive vis-a-vis the legislature once and for all. Unfortunately the impasse will hold up capital expenditure proposals contained in the budget,” he said.

Constitutional crisis

However, Mr Aganga expressed fear about the ambiguity of certain aspects of the constitution. “We expect to have a dialogue because we all have to work together and usually it is resolved but the constitution in some areas is not clear on the roles and powers of the executive and legislature on this. If the executive decides not to sign the budget, then after 30 days, the legislature can actually hold a resolution and pass it. That is the constitution we have today.” With elections underway, deliberations on the budget may not hold under the current house leadership. A new legislative session may not commence until well after the swearing in on May 29. Under the current scenario, only a political solution may resolve this imminent logjam. What then is the way out?

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