Archive for nigeriang

Pressure on naira tests Nigerian central bank

Pressure on naira tests Nigerian central bank

The Nigerian central bank looks set to win a showdown with the foreign
exchange market as it resists pressure for major depreciation of the naira
ahead of national elections.

Businesses and rich Nigerians are going long on dollars to hedge against the
risk of any prolonged political upheaval or security problems due to the April
9 presidential vote, in which President Goodluck Jonathan faces a determined
challenge from his main rival, ex-military ruler Muhammadu Buhari.

A downtrend in Nigeria’s foreign exchange reserves has added to the market’s
jitters. The International Monetary Fund warned last month that the naira could
become subject to “intense speculation” if the reserves continued to
fall, and recommended greater exchange rate flexibility.

But central bank governor Lamido Sanusi, who has won international praise
for his clean-up of Nigeria’s debt-ridden banking system, insists the naira is
flexible enough.

He has repeatedly said a stable exchange rate is key to maintaining investor
confidence, and told Reuters two weeks ago that devaluing the naira would increase
Nigeria’s import bill and fuel inflation.

Some clever maneouvering by the central bank in the market, and a recent
improvement in the foreign exchange reserves, now suggest it will probably
succeed in keeping the naira in a corridor of plus or minus 3 percent around
150 to the dollar, as it has been doing for over a year.

“We remain confident in the sustainability of the 150 level despite the
current naira weakness, notably given the country’s favourable external
fundamentals, the tightening in monetary conditions and, to a lesser
extent…the nearly flat spending outlook implied by this year’s budget,”
said Samir Gadio, emerging markets strategist at Standard Bank.

Weakness

The naira edged down to trade around 156.90 against the dollar on Thursday,
its lowest level in about 18 months, compared to 155.10 at the start of the
week and 153.40 around two weeks ago.

Dollar supplies from the central bank at its
bi-weekly auctions have slowed the decline but have not been large enough to
halt it. Traders say strong dollar demand from companies with unconfirmed
letters of credit, payments on foreign credit cards and large foreign exchange
purchases by bureaux de change are eating up dollar supplies in the interbank
market.

“I see the naira going up to 158 depending on whether the central bank
is willing to defend it,” said a treasury executive at a multinational
consumer goods firm.

The executive said a rate of 160 would affect his company’s operations.
“Anything above 155 naira would be a worry and anything above 160 naira,
we would have to put contingency measures in place like forward
contracts,” he said.

“Any increase in forex charges would be added to our bottom line and
reduce our profits, and it’s got the potential to increase our prices and
affect our operations.”

A senior commercial banker, noting the shallowness of the foreign exchange
market meant a single large deal could shift the rate significantly, said
Nigeria’s reserves were a concern. Their decline over the past year, despite
rising oil prices, has raised questions among some analysts about the quality
of the government’s economic management.

“Reserves of $37 billion would not anchor the currency in the event of
a concerted market drive against the naira,” the banker said.

Fiscal policy is another concern for investors. The Senate on Wednesday
passed a 4.972 trillion naira 2011 budget, increasing spending plans from
Jonathan’s initial proposal three months ago. Over half of the planned spending
is recurrent, meaning Nigeria is spending more on keeping government running
than on badly needed new infrastructure and development projects.

A Nigerian government bond auction on Thursday suggested some investor
disquiet about fiscal policy and the currency. Five-year paper was sold at a
marginal rate of 12 percent, up from 11 percent last month, and three-year
paper at 10.50 percent against 9.25 percent.

Support

Nevertheless, the treasury executive at the
multinational, and many analysts, said they expected the naira to recover to
normal levels after next month’s elections to the presidency, parliament and
state governorships.

Nigeria only emerged from military rule just over a decade ago, and all of
its elections since then have been marred by rigging and intimidation. But this
has not seriously threatened stability at a national level and Jonathan remains
the favourite to win, though the opposition is hoping to force a run-off vote.

Recently there has been good news on the foreign reserves; they rebounded to
$36.4 billion on March 8, up 10 percent from the end of February, though they
remained well down from $42 billion a year ago, according to the central bank.

The government has attributed reserves’ decline in the past year to
counter-cyclical spending during an economic downturn, the defence of the
naira, seed capital for a planned sovereign wealth fund, and financing for
infrastructure projects.

Those explanations do not fully satisfy everyone, but authorities insist
that with oil output and prices rising, reserves will build up once again.

And the central bank has taken some clever administrative steps to reduce
pressure on the naira. It has asked banks buying foreign exchange at its
auctions to submit lists of customers for which the purchases are occurring, to
verify the demand is for commerce rather than for speculation.

It also plans to start selling short-tenored forex forward contracts from
next Wednesday as part of efforts to smooth demand and help businesses hedge
their currency risk. This could reduce the threat of panicky sales of naira.

Razia Khan, economist for Africa at Standard Chartered Bank, said the
current naira corridor might conceivably be shifted, but only carefully and
gradually.

“We all believe that the mid-point is around 150 but there is nothing
to stop the central bank adjusting it up gradually in response to high
demand…and then maybe allowing it to go down again when conditions allow.

“Do we think that they are about to announce a big devaluation in the
naira? No. But do we think the recently announced spending plans are going to
create more pressure on the currency? Yes.”

REUTERS

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Bank budgets $40m to support Nigerian products

Bank budgets $40m to support Nigerian products

The Nigeria Export Import (NEXIM) Bank plans to spend about $40
million (N6 billion) within the next two years to support potential buyers of
Nigerian products in order to boost the country’s export market.

Managing director and chief executive, Roberts Orya, told
reporters in Abuja on Wednesday that the aim is to make Nigerian products more
competitive within the sub region.

“As part of our mandate to facilitate and promote Nigeria’s
trade, NEXIM has engaged consultants in the region to develop a sea-link
project, which is expected to culminate in the establishment of a company to be
owned by investors from all ECOWAS sub-region, to facilitate sea transportation
of goods across the region,” Mr. Orya said.

Potentials and opportunities

According to him, the bank has set an ambitious target on how to
deepen cross border trade and payment system within the Economic Community of
West African States (ECOWAS) sub-region and Africa, to make it the traditional
market for exporters, as is the practice in most EXIM (Export Import) banks
around the world.

“What we have in the ECOWAS or the Central African region is a
non-traditional market, which nobody wants to go and do business, while we
allow other countries’ EXIM banks to take advantage of the huge potentials and
opportunities.

“If trade in the sub-region is deepened, it will help create
jobs and halt capital flight within the region, while every benefit that go
with deepening of trade would come to the region,” he said.

In order to discontinue the current scenario of huge non
performing loans among its clients, he said the institution has resolved to
follow stringent conditions in approving fresh facilities to prospective
beneficiaries.

Out of a total portfolio of over N10 billion recorded in its
books as non-performing loans to various groups since 2009, the bank has been
able to recover less than N1billion.

Tackling non performing
loans

“Loan recovery is usually a challenge in Nigeria. As at August
2009, the total amount of non-performing loans that had 100 per cent provision,
based on the grading of the prudential guidelines, was only N10.03 bilion.
NEXIM was able to recover about N540 million that year; less than N300 million
was recovered between January and December last year,” Mr. Orya said.

A special remedial management department, he said, has been
established charged with the responsibility of following up on customers on a
daily basis to help reduce the high level of non-performing loans, while
stricter conditions are to be adopted in approving future loans facilities.

“We have decided to carry on this transformation, knowing that
going forward, any credit to be created must be of good quality. Apart from the
one per cent general provision that the prudential guidelines require the bank
to make, we do not want to create any bad loans. We have taken time to
establish the pillars necessary to ensure that the bank does not go the same
way in the next two to three years, in terms of bad loans.

“We have learnt from our mistakes. We must ensure that any money
that is given is judiciously used. Any exporter that is not prepared to comply
with our conditions would not be attended to, as there are no political loans
in NEXIM. Any project that the bank must support must be bankable and viable.
Such projects must not only be able to pay back itself, but must also be seen
by all that the capacity is there to do so,” he declared.

He said the bank would henceforth be more concerned with its
ability to generate more foreign exchange for the country as well as facilitate
jobs creation, pointing out that only businesses with healthy balance sheets as
well as those with proven capacity to make sufficient returns to their
shareholders and those in a position to approach the international capital
market to raise money and have good relationships with other EXIM banks around
the world enjoy its patronage.

According to him, Nigeria, with a population of over 150
million, is well-placed to control the political and economic advantages within
the ECOWAS sub-region, pointing out that NEXIM, as Nigeria’s trade policy bank,
is poised to take up the challenge.

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VEXED IN THE CITY: It’s all about who you know

VEXED IN THE CITY: It’s all about who you know

All my life, I’ve always known the right people. My parents got
married on the backdrop of belonging to the right social class; it seemed the
sensible thing to do as a union of that nature would lead to mergers that would
be talked about for years to come. When I came about, even I was talked about
as well – the press dubbed me all kinds of names like ‘‘Prince to the Empire”
and “Heir Apparent”. And, for as long as I can remember, I’ve only always hung
out with the right crowd. Take the current Attorney General for example; we
were in the same crèche.

Till date, my mates back in school often wonder how I made it
through. I was never in class that much; I usually found the lectures a little
boring. My holidays were at least a month longer, as special offers in Paris
and London were not easy to come by and I did not want to waste an opportunity.
I often told a few of my friends that making good grades was not a function of
what you knew but who you knew. A lot of them never quite understood, but some
did. Small wonder “we” came out with good grades.

A trip back to my school for an alumni fundraiser revealed that
the best graduating student in my class was now a lecturer in the same school.
I met a few more who had promising prospects while we were in school, but who
had come in hope that they would find a friend from back in the day that would
be willing to help them at least get a job.

To all who wondered as to how I had become the MD of a blue chip
organisation in such a short time, I simply reminded them, “It’s not what but
who you know”. After the alumni meeting, I made a mental note not to attend
such meetings. The phone calls and e-mails I got afterwards reminding me of my
promise to “help” made me change my contact details. By the way, those worth
staying in touch with knew where to find me. Business life has its own
attendant problems as well. In the club, over drinks and cigars, my competitors
wonder how I’ve been raking in a lot of juicy contracts in the industry.

I hear a lot of rumours
making the rounds, including suggestions that I made night calls to a
synagogue. I take huge swigs of my drink and long drawn puffs on my cigar with
a huge grin on my face. I soak up the pleasure of having them revere me as
being more successful than they are – my body mass seems to increase. I sigh
heavily and remark in low tones, “It’s all about who you know!” Many years have
gone by and I am still on top of my game. I know just about everyone that is
worth knowing.

My sisters also have a firm understanding of this all-too
important fact of life. One of them is married to the country’s ambassador to
France. Recently, she apparently screwed up a chat with some senators after she
was nominated for an ambassadorial post. How does an ambassador-to-be not know
her country’s national anthem? Nonetheless, she has received the nod. Why? We
know the right people. My other sister is married to a former governor and very
influential man. She is on her way to the Senate.

Many have questioned her
suitability. But, who cares about such little details when you know the right
people. At any rate, those complaining are just doing so because they are not
the ones being considered.

I have heard a lot of so-called crusaders question this way of
life. They rant about what effects this will have on our society. They ponder
the future of our children and generations unborn. They are at a loss as to why
we do not appreciate people with abilities, who can actually carry out the job
at hand. My answer is simple. Why worry about generations still unborn?

The rate at which the world is going, they may never make it –
take a look at Japan. And, personally, I have no problems with people who are
actually intelligent or skilled; I hire them. As to why they do not get to the
top, that is entirely their fault. They paid too much attention to building
their intellectual capacities and other abilities, and left the most important
of all to suffer; they did not build on the people they know. So, you see, it
really is simple. It’s not what you know, but the people you know that matters.

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FORENSIC FORCE: What does Shekarau want?

FORENSIC FORCE: What does Shekarau want?

If one week is a long time in politics, eight years is certainly
an eternity. Eight years ago, Ibrahim Shekarau, the current governor of Kano
State, was a classroom teacher, having been demoted from the rank of Permanent
Secretary. Politically, he was unknown. He had no money, no contacts and no
prospects. But by a lucky turn of fate, events conspired to make him governor
of Nigeria’s most populous state.

The sympathy that followed the former principal’s demotion by
then governor, Rabiu Musa Kwanwkaso, propelled Governor Shekarau to the
limelight, but the support of Muhammadu Buhari, then candidate of the All
Nigeria Peoples Party, guaranteed Mr. Shekarau’s victory at the governorship
elections, by a substantial margin of votes. It was the most spectacular, and
maybe only, defeat of an incumbent PDP governor without litigation.

In the perverse way we have of measuring performance in office,
those who are benefitting directly or indirectly from Mr Shekarau will swear to
high heavens that he is one of the best governors ever, in the history of Kano.
Those who lost out in the power game or are not getting financial handouts from
the governor will tell you he has become embroiled in deceit and double-speak.
To them, the humble mallam now has a haughty manner.

Beyond dispensing government largesse as a philosophy of
government unique to Nigeria, what are the impact of policies and programmes on
the society? What will Mr Shekarau be remembered for? In the history of Kano,
late governors Audu Bako and Abubakar Rimi stand out prominently for the
lasting and unforgettable impact they had on the state. But when a leader
leaves no imprints – neither in terms of philosophy nor material legacies, he
might as well not have existed.

Naturally, Mr Shekarau’s cronies will produce long lists of
things the governor has achieved in office. Mr. Shekarau himself likes to
repeat at every opportunity that he has brought peace to Kano and can do the
same for Nigeria. Let us commend him for that. Governance in Nigeria is so
mundane and unimaginative that a governor who is able to maintain relative
peace in his state suddenly thinks he should be president. It provided comic
relief, watching an overdressed Shekarau trying very hard on BBC Hardtalk to
justify why he thinks he qualifies to be president. Though a little more
convincing than Goodluck Jonathan’s forgettable experience with Christine
Amampour on CNN, overall, the interview came across as a charade.

Today, Mr. Shekarau is running for president. Try not to laugh,
but does he really believe it himself? Is he expecting the kind of miracle that
projected him from an unknown, underfunded candidate to governor eight years
ago? Is he expecting that by a similar kind of miracle, he will become
President of the Federal Republic of Nigeria come May 29, 2011? Then he has to
be prepared to lose his faith in the power of miracles. In the Kano of 2003, it
was a straight fight between himself and Mr. Kwankwaso. General Buhari’s
popularity ensured his victory. Today, the level of political sophistication
and voter awareness has changed. Having ridden on Buhari’s back to the
governorship, he now feels sufficiently grown up to challenge the General. Many
people believe he is acting out a PDP script to dilute Buhari’s numbers.

Of all presidential candidates, President Jonathan is first in
terms of media visibility, structure and elite support. In terms of raw appeal
among the masses and the under-privileged, Buhari is by far the most popular
candidate. In appealing to an indeterminate middle class, Ribadu is in charge.
To throw in a mix of clowns and charlatans, Dele Momodu and Chris Okotie hold
sway. And when talking about candidates with ideas, but without a realistic
platform, Pat Utomi is king. In this regard, what is Shekarau’s primary
constituency? Whose vote does he want to attract? And what is the electoral
value of selecting John Oyegun as his running mate?

One of the dangers of political office and power is that people
lose touch with reality. Another danger is that people are often afraid of
speaking truth to power, especially the unpalatable variety. Mr Shekarau has a
retinue of very intelligent advisers and aides. Obviously, none of them has had
the courage to tell him the real truth, bitter as it may be. The miracle of
2003 will not happen again. The leading candidates – Jonathan, Buhari and
Ribadu will not crumble as Kwankwaso did.

Is it worth spending so much time, energy and resources just to earn the
title ‘former presidential candidate’?

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EXCUSE ME: The great debater has come

EXCUSE ME: The great debater has come

Whooha! Here comes
Egberi Papa 1 of Nigeria- who goes there! Who say you are afraid to
come out and dish explosive blows to your opponents or answer questions
asked by mere mortals? Do they know who you are; do they know the kind
of clay God Himself moulded you from? You are not timber or calibre in
Nigerian politics; you are the solid rock that breaks backs with rock
solid silence. Those who dare to stare directly in your eyes melt away
like ice cream in the sun. Those who stand in your path to the inner
chambers disappear – poof, like a grain of salt dropped in Yenagoa
waters, like government money in politicians’ hands.

Whooha! Who said he
won’t participate in this debate? Since when did the elephant fear
stepping on twigs? A fisher man is never afraid to drink gari with
bonga fish and the tall iroko does not frighten the blue-testicle
monkey. Give it up for our great debater! (Thunderous applause)

Who goes there –
get out of the way, our great debater has surfaced like an ancient
masquerade; let women tighten their wrappers and men adjust their
trousers. The one with a billion and one umbrellas covering his head
has arrived. Our great ruler whose name women yearn to name their
children after has arrived. Whooha! Look at that beautiful round hat
and the basket full of promises, running over like the Psalmist’s cup.
You can’t hoodwink him with your big English; he is not easily swayed.
Let’s clap louder, please, it takes a meek leader to tell his people,
“Good afternoon ladies and gentlemen, panel of judges, accurate time
keeper, presenter and my co-debaters. I am here to convince you not
confuse you that I am …” Who can frighten him to do what he is wont to
do – does what a man carry in his pocket frighten him?

I say bring them
on, Egberi Papa is ready for them all. Ask your questions and he will
dismember them, for all that think he is afraid to face the policeman
and even the General in a public debate. Do you think the great debater
picked his PhD from Efurun Junction on his way to Abuja? Do you think
the A-talk-and-do of Nigeria politics is a moi-moi man who will catch
cold because of ordinary debate? I say, who goes there! Egberi Papa,
show them you are the man – show them that nothing can stop you from
talking about what you are not going to do if elected.

Whooha! I say clear
the path for the mighty one who has found the time to climb down from
the mountain top to come banter with ordinary citizens.
Cha-cha-cha-cha-cha! He is finally here now. All the people who thought
he was too proud or afraid to face the cameras and dish it out to the
people, he is here now. Bring your questions in buckets and drums.
Bring them in billions like INEC budget. I say bring them, the
questions that are hot like explosives. He is ready for them all; today
he will show you that he is capable of your predicted incapability.

Where are those
broom and pen carrying debaters? The umbrella man has arrived in the
arena. Come out and let’s duel! Our champion debater has one question
for you all: since when did pens and brooms have more national billions
than the umbrella? I repeat my question: who uses bare hands to bail
water from a sinking boat? Answer me this simple question: when you go
to a chief’s palace, do you see men covering his head with broom and
pen or with umbrella? Knockout! Whooha and we have not even started yet.

Rope-a-dope of
Nigeria politics! Fly like a bee and sting like a butterfly. Crank up
that music, boys, it is not every day His Excellency whose patience can
set the country reeling, has time to come and be debating about crucial
national issue and revealing his dreams to us. Today, he will show you
that he is the only one that can convert years of mini-watts to minutes
of mega-watts!

I say where is the
microphone? The promises he has for us are so hot we can no longer
wait… this mic will soon catch fire! Step back, I say step back – don’t
say we did not warn you. Don’t say we did not tell you that when he
finally decides to talk to you people, TV will blow-out like knockout.
What? Are you people ready at all? I say the one you have been waiting
for is here and ready to debate and you are telling me to hold on one
second while you fill the generator with diesel? Your Excellency,
kindly mount the rostrum, please. And does anyone have a flash light
there please? You cannot leave us in this darkness like this. Somebody
do something.

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Hurricane Bouazizi

Hurricane Bouazizi

Self-immolation has always been a bizarre way of
ending one’s life or as a means of self-purification, but Mohammed Bouazizi’s
will remain with us for generations. Feeling quite hopeless after he was
stopped from selling groceries on the streets of the Tunisian town of Sid
Bouzid, the young Tunisian’s suicide by fire ignited the popular revolution
that is ravaging the Mediterranean coast of Africa. “Egypt will never be the
same again,” Barack Obama said, but beyond that, the world itself will never be
the same again.

The question is: must governments humiliate their
people with socio-political yokes to the extent of self-immolation before they
listen? The repercussions of Bouazizi’s act are many, ranging from the vacuum
created by the resignation of heads of governments in both Tunisia and Egypt to
Arab-Israeli relations. Already, there are copycats re-enacting the Bouazizi
effect, setting themselves alight to spark up revolutions in their countries.
That has resulted in adjustments by governments in Jordan, Algeria and a
renunciation not to contest future elections from the veteran leader of Yemen,
Ali Abdallah Saleh.

And so the hurricane continues. There are
widespread concerns in the West that those Muslim extremists represented by The
Muslim Brotherhood in Egypt will seize upon the opportunity of Hosni Mubarak’s
resignation to launch an Iran-like, conservative theocracy. Mr. Mubarak has
always capitalized on America and its allies’ fears to warn of the instability
that would result if he was forced to leave too soon. The same kind of fear that
Suharto of Indonesia capitalized on to stay in power while facing popular
revolt, before eventually vacating office in 1998. Indonesia, to this day, in
spite of its being the most populated Islamic country on the planet, has not
been taken over by the Islamists that Suharto warned of. The Muslim Brotherhood
in Egypt, though categorized by the U.S. as a terrorist organization, has
declared times without number that it renounced violence decades ago. But its
rhetoric on certain issues, like the Palestinian/Israeli, conflict says
otherwise, and regularly keeps potential allies from western democracies from
changing their minds.

What is remaining for the brave people of both
Egypt and Tunisia is to show the whole world that they can take their own
destinies into their hands and make something of them. Anything other than that
and the sacrifices of people like Bouazizi will have been in vain. The toppling
of unpopular regimes should not be the excuse for the ascendancy of other
dictators waiting in the wings. Mubarak’s only vice-president in history, Omar
Suleiman, may have seen a possibility of this happening when he ended the
speech announcing his boss’ resignation with the words: “May God help
everyone.”

Talking about divine help brings me back home to
Nigeria, where people are oppressed by leaders who sometimes hide under the
garb of religion, or pretending to be religious. The people’s wishes are not
heard even when they are audibly saying “No!” via the ballot box. Like
President Ben Ali, his wife Lela and her family who bask in untold wealth while
their fellow countrymen were being denied their legal means of livelihood on
the streets, Nigerian leaders are only serious when issues concerning their pay
cheques are on the table.

Numerous comparisons can be drawn from the
happenings in North Africa to what Nigerians are experiencing in the hands of
those who claim to care about them. The lessons from these sister African
countries are glaring to the discerning leader: power rests with the people.
Though it is with you now, it is transient. They can take it back when they are
determined to. True of all hurricanes, they begin from a different country at
tremendous speeds, destroying anything on their way, not recognizing boundaries
until they are done. Untypical of this hurricane coming from the North is that
it is named after a man.

Barau Emmanuel writes from
Kaduna

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Untitled

Untitled

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Your turn, Mr President

Your turn, Mr President

The Senate has
joined the House of Representatives in passing the Freedom of
Information Bill, which makes access to information the right of all
Nigerians. And though the Senate President, David Mark, warned that his
chamber would be passing a watered down version, the bill is in many
essentials like the one passed by the lower House. In the end, none of
the versions is exactly what we wished for, and this is not just
because they changed the name to Right of Information Bill.

The bill excludes
economic and defence matters from the areas to which the public might
have full access. The government shall refuse access to “(a) trade
secret, financial, commercial or technical information that belongs to
the government that has substantial economic value or is likely to have
substantial value; and (c) proposal and bids for any contract, grants
or agreement, including information which if it were disclosed would
frustrate procurement or give an advantage to any person.”

It is difficult to
understand how the lawmakers arrived at the conclusion that Nigerians
have no right to know exactly how the money budgeted annually is spent,
who and who are getting the contracts, what the parameters for
allocating resources are. It is equally sad that the legislators have
thrown a blanket over military spending, at the very least suggesting
that the army is above scrutiny.

Yes, we wish the
bill has not placed those inexplicable caveats but there is little we
can do now. Yet what we have is not so bad. It is a bill that
substantially gives citizens the right to investigate public officials,
to hold government to account. As stated in the preamble, “Every
citizen of the Federal Republic of Nigeria has a legally enforceable
right to, and shall, on application, be given access to any record
under the control of a government or public institution.” In effect,
the so-called civil service rule that practically makes it a crime to
give out any information, and covers up great crimes in the name of
procedure, has now become moribund.

It would be naive
for anyone to assume that with the passage of the bill, things will
automatically change and government would become more transparent.
Decades of hiding secrets, and a mindset that considers anyone who
seeks information about government activity a troublemaker, cannot be
easily changed. It will take time for public officials to finally
realise that they are there at our behest, that it is their obligation
to explain every action they take in the course of their official
duties. But like everything, the grounds will begin to shift gradually,
and more information will get into public domain.

The recent
publication of the WikiLeaks cables on Nigeria by this paper shows more
clearly how our public officials operate in secret, the base instincts
that motivate them. It also shows how the same people, who consider it
beneath contempt to tell Nigerians how their country is run, grovel
before foreign ambassadors, eager to divulge the most sordid details.
In the end, they all come out looking tainted, and their profiles by
the American ambassadors are universally derogatory. It’s a humbling
picture.

We can only hope
that with the passage of the FOI bill, the citizens of this country
will get to know what their elected leaders and other public officers
are doing – before the Americans do. The law also places a burden on
the media to use any information they get responsibly. It behoves
journalists, who are probably the major beneficiaries of this bill, to
use the opportunity wisely so that the next time our laws are reviewed,
those restrictive clauses will be expunged.

As the chambers
conclude plans to harmonise the versions of the bill, it will soon be
left for Goodluck Jonathan to give his assent so that the law can
become operative. One of his predecessors, Olusegun Obasanjo, failed to
do that in 2007 when the bill was first passed by the Assembly.

But there is every indication that President Jonathan will sign it.
He has done very few things to commend him to the critical mind that
one cannot see him throwing away this historic opportunity. It is not
only good politics for him to sign as we go into elections; it is also
good policy.

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BRAND MATTERS: Social media and its importance to brands

BRAND MATTERS: Social media and its importance to brands

I read a news
report in the media recently about Toyosi Akerele, the founder of
R.I.S.E, a youth development organisation. She was quoted as saying her
organisation can mobilise about 60 million youth.

I gave her comment
serious thought and was beside myself imagining how it could happen.
However, it is possible, as R.I.S.E network has been a veritable
platform for youth networking. The organisation utilises social media
as a potent tool to reach out to millions of youth out there and has
achieved huge success through this platform.

Social media has
become an integral part of our daily existence. With consumers getting
more sophisticated, companies should begin to refocus their marketing
strategies. It is actually the ‘in’ thing and has definitely come to
stay.

Companies now use
social media, such as blogs and community sites, to market their
brands. Popular social sites such as Linked In, Facebook, Twitter,
Flickr, and You Tube have more than five million visitors daily. In
Nigeria, bellanaija.com, Naijapal, Linda Ikeji, and others have become
veritable channels of engagement.

Promoting brands
using these sites is very attractive and will definitely reach the
target audience. This is due to the huge amount of human traffic that
passes through the sites on a consistent basis. Social media helps
brands maintain a consistent and constant presence in the lives of
consumers, bridging the gap between the two.

This platform is
also attractive to brands, as it is a low cost investment when compared
to other available options. Conventional methods of advertising cost a
lot more, while effectiveness and reach are achieved with social media,
which guarantees consumer attention and loyalty to brands. Social media
fosters a two-way communication and builds meaningful connections with
the target audience companies intend to reach.

It also promotes
the word-of mouth concept which drives visibility for brands. When more
people tell good stories about a brand, it helps build goodwill and
brand acceptability. Companies, through their brands, can make lasting
impact on consumers through the adept use of social media marketing.
Brand advocates are created through the influence of this platform.
Through networking, some causes are promoted online in order to
mobilise support and enlist others.

For instance, on
Facebook, a group is created to advance a particular issue and within
the twinkle of an eye, thousands of people sign up for such.

Imagine if a group
on ‘Good Health is in Our Hands’ campaign of Dettol is created online.
It will massively drive visibility for the brand through its key
messages on why we need to have maximum protection against germs. The
brand will have advocates that will ultimately become consumers.

However, in
adopting social media, there should be a strategic plan to communicate
the brand offerings. This is important in order to maximise the
enormous potentials and leverage that social media offers. The brand
should be properly defined in clear and concise language.

The core target
segment should be identified, while opportunities for the brand are
also explored. A content and engagement strategy that appeals to the
identified needs of the target audience is important.

It is also key to
listen and observe the trend of online conversations. It is not just
enough for a brand to adopt social media marketing. This is because
each target segment has something that appeals to it than the others.

Observation will
enable companies measure the impact of usage of social media. There
should be a tangible reason for doing so. It is one thing to have fans,
but the fans should be turned to consumers and advocates.

The importance of
having the right message cannot be underestimated in social media. This
is because of its effective role in reaching a dynamic audience. Brands
should paint realistic pictures of what they stand for in the
marketplace. There should be a linkage between brand promise and
consumer satisfaction. Social media helps in spreading the good sides
of a brand only when the consumer experience is exciting.

Social media indeed brings new opportunities which should be
leveraged for impact. It helps companies learn how to achieve results.
It also builds brand loyalty and followership. This creates an online
community of brand loyalists and enthusiasts who have had an exciting
experience with the brand.

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OIL POLITICS: Sobering risks on the nuclear power plant

OIL POLITICS: Sobering risks on the nuclear power plant

Splitting the atom
was a major technological feat for humankind. Releasing energy from it
for electricity production was yet another major step towards
supporting the unfolding path of civilisation.

The worst memories
of the deliberate unleashing of the power of a nuclear device remain
the exploding of atomic bombs over Japanese towns of Hiroshima and
Nagasaki in 1945, towards the end of the Second World War.

In terms of nuclear
accidents of monumental disaster, the 1986 Chernobyl disaster in
Ukraine (then in the former Soviet Union) has no match. Many deaths and
severe health problems followed this accident. The radioactivity that
accompanied the Chernobyl accident was several times higher than what
was unleashed by the atomic bombs dropped on Japan during the Second
World War.

The radiation
spread as far as Belarus, Russia, Ukraine, and parts of France and
Italy. The Chernobyl accident was adjudged to have resulted from human
error, including design defects. It was also accompanied by a series of
attempts to cover up the impacts, as well as a shrouding of the
exploded reactors in defective concrete.

Today, the world is
alarmed by the massive impacts of the 8.9 or 9.0 magnitude earthquake
that struck off the coast of Honshu Island in Japan. The combined
effect of the earthquake and the ensuing tsunami has astonished a
watching world, brought great misery to the people of Japan, and raised
a huge question mark about how prepared we can ever be for natural
disasters.

Everyone accepts
that Japan is well equipped and prepared to handle earthquakes, with
building codes and other emergency infrastructure set to deal with such
happenstance. What has added a new twist to the current situation is
the impact that the earthquake and tsunami has had on Japan’s nuclear
power plants.

An explosion at the
Daiichi plant near Fukushima on March 12 raised anxieties. The
explosion blew off the upper exterior walls of the plant. The standby
diesel generator that would have pumped water to cool the plant failed
one hour after the earthquake struck, leading to the overheating of the
water and resulting in the explosion.

The authorities
announced that the reactor core of the plant was safe, and that there
wasn’t a huge radiation leak. Nevertheless, over 100, 000 people had to
be moved, owing to fears of radiation impacts. The evacuation zone
stretched over 20 kilometres radius of the plant. Over the next few
days, the radiation kept below acceptable official levels, although
anxiety levels remained high.

A more severe
explosion early on March 15 raised radiation levels, increasing fears
that the containment vessel of reactor 2 had been damaged. The
evacuation of emergency workers from the power plant signified the
possibility of a nuclear catastrophe.

The nuclear game is
getting a link to soccer in Brazil where there are plans to bring a new
nuclear power plant on stream, early enough to provide electricity for
the 2014 FIFA World Cup fiesta the country would then be hosting. The
country already runs two nuclear power plants that came into use in
1985 and 2000, meeting 50 per cent of the electricity needs of the
state of Rio de Janeiro. Environmental concerns are being addressed
through pledges to adhere to rules. But pledges are not so reassuring
in these matters.

Closer home in
Africa, the drive towards nuclear power is gathering momentum. South
Africa already invests huge sums in this mode of energy generation and
produces 5 per cent of its electricity from nuclear plants. Uranium
rich countries such as Namibia believe that this is a way to boost
economic development. There have even been talks of the possibility of
building floating nuclear plants off the coast of Namibia.

Although Namibia is
not earthquake prone, this does not sound like an exciting or safe way
to go. Apart from the risks involved in operating nuclear power plants,
it is not quite clear to whom the country plans to export the surplus
electricity that would be generated by this plant. One could venture to
say that floating nuclear plants would be dynamic power generators and
may be moved closer to export markets, possibly as far away as energy
starved Nigeria.

The incident from
Japan also underscores the need to move away from mega power
infrastructures that depend on extensive distribution grids. It
suggests that nations should invest in the development of renewable
energy sources from abundant solar, wind, and other resources, rather
than embark on high-risk technologies that we cannot quite control.

It is also a time
to realise the viability of localised energy provision on the basis of
energy autonomy for discrete zones and communities. This would be
cheaper to deliver and ensures better energy supply, including during
crisis situations.

Considering
Nigeria’s emergency response preparedness and capacities in simple
areas like fires, oil spills, and industrial accidents, as well as the
quality of maintenance of our hydropower and other plants, venturing
into the nuclear power arena here is nothing short of courting
disaster.

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