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DANFO CHRONICLES: ‘One hundred percent increase’

DANFO CHRONICLES: ‘One hundred percent increase’

As we approached a dubious police post, the conductor sighed.

“Should I give them, or do you prefer to do it yourself?” he asked the driver.

“Relax,” said the driver.

Something about the
word worried the conductor – enough to make him bring his head back
into the bus. He searched the driver’s face and did not seem to like
what he saw. “Look, just give them their 50 naira,” he said a little
urgently. “They will only waste our time otherwise.”

“I say leave them
to me,” said the driver, “No be everything be money.” The conductor’s
mouth opened but no words came out, so he closed it again.

The police officer
approached the conductor with a broad smile. The conductor nodded
towards the driver and the policeman stopped smiling and stopped
walking.

“How far?” asked
the driver jocularly. “See, we just start work now-now. This na our
first trip today. Make I go come back. I go see you later.”

He started to drive
away when the policeman suddenly screamed, “Stop him! Stop him!” and
another officer materialised from nowhere and placed his body in front
of our vehicle.

“Park,” he barked, gun raised. There was a collective groan in the bus.

“Just give am
money, make we go,” said a woman behind the driver. But it was too
late. The police officers had remembered their duty.

“Driver, come open your boot,” said one. The driver tried to placate him, gone was the braggadocio.

“Officer,” he said, “Come. Look. See my hand.” The police officers refused to “see”.

“My friend, will you come down?!” shouted the other one. “Who be your mate? You think say na play we come play here?”

The driver turned
off the ignition. The school boy sitting beside me who had been
listening to music on his phone and nodding to the beat, removed his
earphones. “Wazup?” he asked no one in particular and as no one paid
him any heed, he returned to his music.

“The driver was too
stubborn,” said a frail-looking man with a feathery voice. “The
conductor told him what to do but he wanted to show sense. Na God know
when we go leave here today.”

The driver glared
at him and got out of the bus, accosted by the police officers who
followed him to the boot. We could hear him pleading, but they were
adamant.

“When somebody wan
help una, una no dey know,” sneered one of the cops. Inside the bus,
the conductor shook his head, still amazed at the attitude of his
driver.

“Now they will not take anything less than N200,” he said sadly.

For a while we
continued to hear the conversation: the driver’s voice falling as the
policemen raised theirs. The boot was never opened. There was a lull
and the driver came back in, muttering about people who like to reap
where they did not sow.

“Na today you know
that one?” said one of the men sitting in front. “You should have just
given him the money as usual instead of wasting our time.”

At that point, the
driver could not take it any longer. “Was it his money?” he asked.
“‘Give him money, give him money’. You give me money to keep for him?
Nonsense.”

“Driver, I beg let’s go,” said somebody at the back. “We have already wasted enough time here.”

The driver hissed
and drove on. After a while, the conductor asked, gently in Yoruba,
“How much did they collect eventually then?”

The driver took his
time changing gears, and then replied: “Those thieves collected 200
naira. But it will never again be well with them or with their
children’s children. The bastards.”

The boy with the earphones took them out and looked at me.

“That’s 100 percent increase,” he said. Of course, I didn’t know what he was talking about.

“What is 100 percent?” I asked him.

“I heard everything,” he replied. “Instead of 50 naira, he ended up paying 200.”

I looked at him. “So you think that is 100 percent?”

He looked a bit confused and put his earphones back in. Standards have indeed gone south.

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Egyptians defy curfew, call for Mubarak to go

Egyptians defy curfew, call for Mubarak to go

Thousands of angry Egyptians defied a curfew on Saturday for the second day
in a row and stayed on the streets to push their demand that President Hosni
Mubarak resign.

The army had warned that anyone who remained on the streets after 4 p.m.
(1400 GMT) would be in danger, but as the deadline passed, protests continued
in central Cairo and the port city of Alexandria, witnesses said.

Soldiers took no immediate action. They seemed relaxed and some protesters
chatted with troops mounted on armoured vehicles, the witnesses said.

On the fifth day of unprecedented protests against Mubarak’s 30-year-rule,
it looked increasingly as if the army held the key to the nation’s future.

The president ordered troops and tanks into Cairo and other cities overnight
and imposed a curfew in a bid to quell unrest in which dozens of people were
killed.

In an effort to appease the protesters, he dismissed his cabinet and said he
would listen to demands for reform.

The protesters, many of them young urban poor or students, are enraged over
endemic poverty, corruption and unemployment as well as the lack of democracy
in the most populous Arab nation. They pledged to press on with protests until
Mubarak quits.

The unrest, which follows the overthrow of Tunisian strongman Zine
al-Abidine Ben Ali two weeks ago in a popular uprising, has sent shock waves
through the Middle East, where other autocratic rulers may face similar
challenges.

Several thousand people flocked to central Cairo’s Tahrir Square on
Saturday, waving Egyptian flags and pumping their arms in the air in unison.
“The people demand the president be put on trial,” they chanted.

Troops made no attempt to break up the
demonstration and protesters encouraged them to support their cause.

The scene contrasted with Friday, when police fired teargas and rubber
bullets and protesters hurled stones in running battles.

While the police are generally feared as an instrument of repression, the
army is seen as a national institution.

Army is key

One Middle East expert, Rosemary Hollis, of London’s City University, told
Reuters the army had to decide whether it stood with Mubarak or the people.

“It’s one of those moments where as with the fall of communism in
Eastern Europe they can come down to individual lieutenants and soldiers to
decide whether they fire on the crowd or not.”

In Alexandria, police used teargas and live ammunition against demonstrators
earlier on Saturday.

Al Jazeera TV reported police opened fire on protesters trying to storm the
Interior Ministry in Cairo, killing three, but the report could not be
confirmed.

According to a Reuters tally, at least 74 people have been killed during the
week although there was no official figure. Medical sources said at least 1,030
people were injured in Cairo.

Government buildings, including the ruling
party headquarters, still blazed on Saturday morning after being set alight by
demonstrators who targeted symbols of Mubarak’s rule

As well as Cairo and Alexandria, clashes have also occurred in Suez, site of
the strategically important canal.

“We are not demanding a change of cabinet, we want them all to leave,
Mubarak before anyone else,” said Saad Mohammed, a 45-year-old welder in
Tahrir Square.

Mubarak, a key U.S. ally, has held power since the 1981 assassination of President
Anwar Sadat by Islamist soldiers and his government still rules with emergency
laws.

He promised to address Egyptians’ grievances in a television address on
Friday but made clear he intended to stay in power.

So far, the protest movement seems to have no clear leader or organisation
even if Mubarak did wish to open a dialogue.

Prominent activist Mohamed ElBaradei, a Nobel Peace Laureate for his work
with the U.N. nuclear agency, returned to Egypt from Europe to join the
protests. But many Egyptians feel he has not spent enough time in the country.

In an interview with France 24 television, ElBaradei said Mubarak should
step down and begin a transition of power.

“There is a consensus in Egypt in every part of society that this is a
regime that is a dictatorship, that has failed to deliver on economic, social,
and political fronts,” he said.

The Muslim Brotherhood, an Islamist
opposition group, has also stayed in the background, although several of its
senior officials have been rounded up. The government has accused it of
planning to exploit the protests.

The deployment of army troops to back up the police showed that Mubarak
still has the support of the military, the country’s most powerful force. But
any change of sentiment among the generals could seal his fate.

Mocking Mubarak

Protesters in Tahrir Square mocked Mubarak’s sacking of his cabinet as an
empty gesture.

Mahmoud Mohammed Imam, a 26-year-old taxi-driver, said: “All he said
was empty promises and lies. He appointed a new government of thieves, one
thief goes and one thief comes to loot the country.”

“This is the revolution of the people who are hungry, this is the
revolution of the people who have no money against those with a lot of
money.”

The final straw appeared to be the prospect of elections due to be held in
September. Until now few had doubted that Mubarak would remain in control or
bring in a successor in the shape of his 47-year-old son Gamal.

It also poses a dilemma for the United States. Mubarak, 82, has been a close
ally of Washington and beneficiary of U.S. aid for decades, justifying his
autocratic rule in part by citing a danger of Islamist militancy.

Egypt plays an important role in Middle East peacemaking and was the first
Arab nation to sign a peace treaty with Israel.

U.S. President Barack Obama said he had
spoken to Mubarak shortly after his speech on Friday and urged him to make good
on his promises of reform. U.S. officials made clear that $1.5 billion in aid
was at stake.

The European Union and other foreign governments appealed to Mubarak to show
restraint and listen to the demands of the people but stopped short of
suggesting he should quit. Saudi Arabia’s King Abdallah expressed his support
for him.

Britain, Germany and other countries advised their nationals against travel
to the main cities hit, a development that would harm Egypt’s tourist industry,
a mainstay of the economy.

Banks will be shut on Sunday as “a precaution”, Central Bank
Governor Hisham Ramez told Reuters.

The stock market, whose benchmark index tumbled 16 percent in two days, will
also be closed on Sunday. The Egyptian pound fell to six-year lows.

REUTERS

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Where have all the billions gone?

Where have all the billions gone?

The debate on Nigeria’s debt debacle
appears an endless cycle. Available statistics on the spiralling
figures do not add up with reasons adduced in government circles. While
government claims the various loans, both domestic and foreign, were to
facilitate the provision of basic socio-economic infrastructure that
would make for qualitative living standard for the people, Nigerians do
not seem to feel the impact, except in the huge repayment baggage they
have to bear.

Poor in riches

As the world’s
sixth highest exporter of oil and gas, it is natural to expect that
Nigeria should have no business with poverty. Between 1999 and 2009,
Nigeria earned about $200.34billion (about N30.051trillion) from
exportation of about 4.56 billion barrels of crude oil.

The recent United
Nations Development Programme’s (UNDP) Human Development Report (HDR)
for 2010 ranks the country among the poorest among the developing
economies, along with Chad, Vietnam and Yemen, with less than $1,500
per capita income, based on the 2007 World Bank country income
classification.

Though the
country’s life expectancy ratio for last year nudged a marginal
improvement from 46.9 years to 48, the human development index (HDI)
leaves Nigeria stranded in the 158th position out of 182 countries
included in the quality of life ranking. This leaves her behind such
less natural resource-endowed countries like Swaziland, Angola,
Madagascar, Kenya, Ghana, Cameroon, Djibouti, Lesotho and Uganda.

Depleted Excess crude revenue

Accumulated revenue
in the Excess Crude Account (ECA) as at 2008, with an average crude oil
benchmark price of $108 per barrel, was N1,728.48 billion, according to
the Office of the Accountant General of the Federation’s (OAGF)
records. This excluded the sum of over N706.03billion earned from
payments for petroleum profit tax (PPT) and N247.56billion for
royalties by multinational joint venture oil companies. As at December
2009, the account had been depleted to less than N72.74billion.

As at December last
year, Minister of State for Finance, Yawaba Lawan-Wabi, said the
balance in the ECA is about $3million, after the Federation Accounts
Allocation Committee (FAAC) held a secret emergency meeting in the
twilight of last month to disburse $1billion (about N150billion) to the
three tiers of government.

But, it appears the
more government earned money over the years, the more it is sinking
deeper into the cesspit of debt, though without much to show for it, in
terms of a corresponding impact in the quality of life of the people.

(Please see the fact boxes) DMO justifies

The Debt Management
Office (DMO) allays the fears of Nigerians about the continued clime of
the country’s debt profile, claiming the size of the domestic debt
stock reflects largely the cumulative effect of financing of the
country’s deficit budgets over the year, apart from investments in
public sector capital expenditure needs.

“The increases are
accounted for by different sets of factors, reflecting a shift towards
market-based funding of government deficits, borrowing for
developmental purposes and on-lending to institutions such as Nigerian
Agricultural and Rural Development Bank (NARDB), Bank of Industry (BOI)
and the Federal Mortgage Bank of Nigeria (FMBN),” the DMO explained in
its National Debt Management Framework (2008-2012) publication.

Director General,
DMO, Abraham Nwankwo, said last Tuesday in Abuja that the country’s
domestic debt profile is growing as a result of a deliberate policy by
government to focus more attention on raising funding for its
activities and services from domestic sources, rather than relying on
external sources.

“It was deliberate
for government to depend more on domestic sources, rather than
external, so that we develop other aspects of our economy, including
the bond market, the habit of long time savings and investment as well
as developing the skills by our local entrepreneurs. Nigeria now has
the capability to manage various bond markets,” he said.

Where are all the billions?

A senior lecturer,
Department of Economics, University of Calabar, Desmond Ukut, said “in
as much as it is a common practice for most developing countries to
take advantage of some of the concessionary facilities from such
international lending organisations as the Word Bank, African
Development Bank (ADB), International Monetary fund (IMF) and other
such organisations for developmental purposes, Nigeria appears to be an
exception.”

Mr Ukut said
successive governments, both military and civilian, have run the
country into debt under the pretext of utilising such loans to provide
basic amenities that would cater for the good life of the people only
for them to divert same into private pockets.

“The country is
replete with abandoned projects for which past governments collected
loans to execute, only for successor administrations to abandon them on
grounds that the money had been diverted by their predecessors,” he
noted.

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BRAND MATTERS:The good side of competition

BRAND MATTERS:The good side of competition

The current
scenario playing out in the telecomm sector is a welcome development
for consumers. This is because the companies have for a long time
exploited consumers, who have been forced to part with their hard
earned money without getting the commensurate service delivery.

The recent slash in internet tariff and call rates are evidence of the intense competition among the telecomm companies.

To verify the claim
of poor service delivery, all you need do is to attempt to call the
customer care line of any network. You will meet frustration without
your enquiries being attended to. This has been the agony and painful
experience that consumers have had to cope with all these years. But I
believe with the stiff competition going on, telecom companies should
have a rethink and reposition their services for maximum impact.

I remember vividly
the statement credited to a former CEO of MTN who said per seconds
billing was not possible in Nigeria. He went further to say that as at
then, it would take five years for per seconds billing to happen in
Nigeria. It was immediately after this that Globacom crashed the call
rates and introduced per seconds billing in the country.

Through this,
consumers heaved a huge sigh of relief as this marked a dramatic change
in the telecomm industry. Globacom challenged the status quo to become
a formidable threat to competition then and it clearly won the heart of
Nigerians.

Competition is one
that is very critical to the survival of any industry. It needs to be
emphasised that never again will consumers be exploited for no just
cause. I have seen cases where consumers have dumped the sim cards of a
network for another.

The major issue
that informed this write-up is the 35 per cent and 40 per cent
reduction in the cost of internet connection. The telecomm companies
also reduced the tariff on Blackberry. The tariff reduction also
applies to the cost of voice call services.

The competition between the telecomm companies has been more pronounced as they outwit one another to win consumer loyalty.

One glaring fact
that should not be overlooked is that consumers now have a better
choice to abandon any network that does not serve their interest
better. The situation can no longer continue like this as the telecomm
companies should brace up for the challenges ahead.

Like I mentioned
last week, I foresee a consumer revolution sooner than expected. This
is due to the fact that despite the population of Nigeria and the size
of the market, there is no price advantage. Some other smaller African
countries pay less for telecomm tariffs.

Further tariff reduction is needed

I believe that just
like the recent crash in internet tariff and call voice rates, one of
the telecomm companies should take a bold step and embark on further
reduction in tariffs. This will send others napping while its gains the
upper hand in the market. This was the strategy adopted by Globacom on
the per seconds billing.

Without intense
competition, brands will not have a rethink of their strategy in line
with market realities. It places so much burden on the telecomm brands
to either feel the pulse of consumers or face the dire consequences.
Competition keeps brands on their toes, as any brand that slow paces
with the needs and aspirations of consumers will suffer in the market
place.

What is most
painful is that telecomm companies focus more on the profit without the
value and service quality. Despite all the huge profits being declared,
the interests of consumers are not adequately taken care of.

This is also a
wake-up call to telecomm consumers to be ready to challenge the
exploitation they suffer. Consumers can also utilise the competition as
a springboard to showcase the distinctive features of a network over
the other.

Whenever telecomm
companies are not responsive, consumers have the right to protest and
fight for their rights. The present competition can only be meaningful
when there is a strong focus on value and service delivery.

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Agency restricts movement at airports

Agency restricts movement at airports

As part of measures
aimed at enhancing the level of security across airports in the
country, the Nigerian Civil Aviation Authority, on Thursday, announced
the restriction of non-travellers within and around airports.

The directive,
which is a fallout of Wednesdcay’s rumoured bomb scare at the Murtala
Muhammed International Airport, Lagos, was made public by the director
general of the authority, Harold Demuren, at the agency’s headquarters
in Lagos. According to Mr Demuren, the directive was in accordance with
Part 17, Regulation 83 of the Nigerian Civil Aviation Regulations, and
Section 13.7 of the National Civil Aviation Security Programme. “I
hereby direct that the following additional security measures should be
implemented immediately in order to forestall any threats and incidents
at the nation’s airports: Use of hand-held metal detector and explosive
detection system at the airport entrances and gates; restriction, as
much as possible, the movement of non-travelling public around and
within the terminal building; and adequate advanced information
concerning inbound cargoes meant for the nation’s airports must be
received prior to the arrival of the cargo,” he said.

Russia’s experience

The speculations of
a possible bomb explosion at the Lagos international airport followed
the recent bomb blast at Moscow airport that led to the demise of 35
persons. The rumour at the Lagos airport prompted airports users and
passengers to become suspicious of one another at the airport on
Wednesday. “In addition, passengers should be informed that they may
experience possible delay as they pass through our security checks and
are, therefore, advised to arrive at the airport at least three hours
before their flights,” said Mr Demuren. “This directive shall take
effect from 27th January 2011 and shall be in force until further
notice.”

Early this month, the Nigerian Police and other law enforcement
agents at the airport swung into action by effecting stringent security
checks on motorists moving in and out of the airport. Days later, the
Nigerian Civil Aviation Authority carried out a security meeting with
various organisations and intelligence outfits in a bid to ensure
safety across Nigerian airports. The screening and security meetings
were as a result of the bombings recorded across Nigeria and
preparations for the forthcoming general elections.

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Small scale enterprises meet CBN conditions

Small scale enterprises meet CBN conditions

Only two small
scale enterprises in Bauchi State have met the CBN guidelines for its
intervention loans to operators in the sector, an official has said.

The chairman of the
National Association of Small Scale Industries, Tijjani Jallaba, on
Thursday, named the two enterprises as Gambo Marafa and Baba Buba,
adding that Fatima Idris Enterprises was in the final stage to qualify
for the loan.

“If you see what is
encompassed in the scheme, you will realise that the CBN has introduced
a good programme that will help to transform small scale businesses
into profitable ventures,” Mr. Jallaba said.

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Donor agencies urged to support farmers

Donor agencies urged to support farmers

The Ebonyi State
commissioner for agriculture and natural resources, Emmanuel Echiegu,
has urged donor agencies to focus attention on programmes that directly
address the needs of farmers.

Mr. Echiegu made the call in an interview with the News Agency of Nigeria in Abakaliki on Wednesday.

“Most of the funds approved by these agencies for agricultural
endeavours are channeled into administration, capacity building, and
training of agricultural personnel, instead of actualising the needs of
farmers,” he said.

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Ivorien farmers see cocoa smuggling on the rise

Ivorien farmers see cocoa smuggling on the rise

More cocoa beans
are being smuggled from Ivory Coast to Ghana, farmers told Reuters on
Thursday, as exporters halt shipments from the world’s top grower and
global prices hit a one-year high.

Top exporters are
complying with presidential claimant Alassane Ouattara’s call for a ban
on exports, in a bid to starve incumbent Laurent Gbagbo of revenues.

Mr. Gbagbo has
refused to quit despite United Nations-certified results of a November
28 poll showing rival, Alassane Ouattara, won.

While the overall
amount of contraband cocoa crossing into Ivory Coast’s eastern
neighbour was hard to establish, farmers in border regions cited
evidence of increased activity.

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C&K wins licence for Cameroon diamond mine

C&K wins licence for Cameroon diamond mine

Cameroon awarded a
diamond mining licence to South Korea’s C&K Mining, requiring the
company to begin development of its Mobilong concession within a year,
according to state television on Thursday.

The Mobilong
concession has probable reserves of 736 million carats of gem quality
and industrial diamonds that could make the Central African state a
leading world diamond exporter, according to drilling results.

C&K signed a
mining convention for the deposit with Cameroon in July 2010, setting
out duties and obligations of both parties and paving the way for a
licence. C&K Mining is a joint venture between Cameroon and South
Korea, which holds the majority share.

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Tullow acquires interest in a Centric Kenya block

Tullow acquires interest in a Centric Kenya block

East Africa-focused
exploration firm, Centric Energy, said it had completed an agreement to
farm out to Tullow Oil Plc a 50 per cent interest in Centric’s Block
10BA in north-western Kenya.

The deal brings to
four the number of farm-in agreements that London-listed Tullow has
closed this week after acquiring 50 per cent states in another two
Kenyan blocks and an Ethiopian exploration area.

Tullow paid $961,000 in historic costs and will finance 80 per cent of future expenditures to a limit of $30 million.

Kenya has yet to discover any commercial oil deposits, but interest in its exploration blocks has grown.

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