Archive for nigeriang

Tinubu calls for true federalism

Tinubu calls for true federalism

Former governor of Lagos state, Bola Ahmed Tinubu yesterday in
Osogbo, Osun state restated his call for true federalism as the only panacea to
the nation’s political and economic problems. Speaking at the official
unveiling of the coat of arms of the government of Osun state and its flag, Mr.
Tinubu stated that the only path to economic growth was for the country to
return to a federal system of government.

“For this country to return to the path of progress, honour and
economic buoyancy; there is need for us to return to true federalism,” he said.
“This will allow every federating unit in the country to develop at its pace.”

The ACN leader urged the people of the state to give the
governor, Rauf Aregbesola, maximum support in his efforts at restoring the
state to the path of honour and economic independence.

“It’s about time for us the progressives in this country to
translate the country’s potentials into reality,” he said. “Let us show that we
can turn around the country for the benefit of all of us.”

The state governor, while unveiling the new coat of arms for
the state tagged “Ipinle Omoluabi” at a programme to commemorate the rebranding
of the state, called on the people to return to the old golden era and put the
interest of the state above theirs. He explained that the rationale behind
rebranding the state was to return the state to the old era of governance where
service was the hallmark of governance.

Mr. Aregbesola who recalled the achievements of the premier of
the defunct Western region, the late Obafemi Awolowo, stressed that the Yorubas
had always been at the forefront of development in the country. He restated the
commitment of his administration to good governance, democracy, due process and
rule of law.

Tinubu’s attack

In his speech, Mr. Tinubu faulted the reported claim by the
speaker of Osun State House of Assembly, Adejare Bello, that the former
governor of the state and now the national chairperson of the ACN, Bisi Akande,
lost the 2003 governorship election to the People’s Democratic Party because of
Mr. Akande’s retrenchment of civil servants in the state.

Mr. Tinubu stated that Mr. Akande lost the election to the
PDP’s rigging which was bent on chasing out the progressives out of the
southwest by all means. The event was witnessed by Nobel Laureate, Wole Soyinka
and the national chairperson of the Action Congress of Nigeria, Bisi Akande.
Others included the son of late human rights activist Gani Fawehinmi, Mohammed
and Akinwumi Ishola.

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‘Amnesty to militants has enhanced air safety’

‘Amnesty to militants has enhanced air safety’

Nigeria’s largest
helicopter company, Bristow Limited, has said that the federal
government’s amnesty programme for militants has improved the level of
aviation safety in the area. Describing the amnesty initiative as one
that has “positively worked” for the aviation industry, the carrier
whose major operations in the country revolves around the Niger Delta
region explained that prior to the pardon for militants in the region,
its operations and those of other airlines were hampered as the
combative youths occasionally attacked their facilities with arms.

“The amnesty has
worked. Before the amnesty, we were concerned because we needed to fly
at a very high level to avoid arms fire. As long as our clients tell us
that it is a hot area, we don’t go there,” said Akin Oni, managing
director of the helicopter company, during a briefing at the company’s
head office in Lagos over the weekend.

Mr. Oni explained
that before the amnesty, Bristow and other helicopter companies and oil
firms within the region had been working together in the sharing of
intelligence in order not to fall victim to assaults from the
militants, adding that carrier, which has over 90 percent of its
investment in the Niger Delta often stayed away from the area whenever
there was trouble.

“Once again, I will
say that the amnesty has worked. The oil companies have been very
cooperative; we are not a military service. Once there is possible
trouble in the area, we don’t go there, so we work on the intelligence
to avoid losing our facilities,” he said.

Last year, the
federal government of Nigeria through the Niger Delta Development
Commission declared amnesty to militants in the region, who before the
official pardon from the government, engaged in the destruction of
lives and property in a bid to press home their demands.

“You will agree
that the level of unrest in the Niger Delta, which had drastic effects
on the economy of the country, was calmed after the government
intervened in the form of amnesty last year,” said Beggi Fidelis, camp
support staff and an ex-militant during the recent unveiling of 212
transformed ex-militants in Lagos being prepared for vocational
training in Ghana.

Meanwhile, Mr. Oni
disclosed that the airline was working to ensure that safety in the
industry is sustained, as he noted that the forthcoming safety and
security seminar being organized by Bristow would focus on the need to
guarantee an accident-free aviation sector in Nigeria.

“There are
insinuations that it is not possible not to have accidents, we believe
it is possible. Accidents don’t just happen, several things happen
before you get to that terrible situation where you have to go and
clean up blood,” he said. “What we are interested in is zero accident
and that is what we are doing.”

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Federal government to offer loans to private medical institutions

Federal government to offer loans to private medical institutions

In a bid to boost the health sector of the country, the federal
government has promised to offer free loans to private medical institution
owners. It also said that it would encourage public/private partnership, and
give support too in the provision of modern facilities for the needs of
Nigerians.

The Minister of Health Onyebuchi Chukwu made this known over the
weekend in Abuja during a free prostate cancer screening exercise organized by
a private clinic, Chivar Clinic and Urology Centre in collaboration with the
Ministry of Health in commemoration of the 2011 World Cancer Day.

Mr. Chukwu urged Nigerian men to test for prostrate cancer,
insisting that early detection can lead to a cure. He also said that the
ministry would embark on free public cancer screenings in all the local
governments in collaboration with the Association of Local Governments of
Nigeria. The minister and his entourage got screened for prostate cancer after
which they went on a tour of the clinic’s facility and equipment.

Earlier in the day, the minister had flagged of the public HPV
vaccination of girls from age 9-15 who received the vaccine freely at the
conference hall of the Ministry of Health.

Meanwhile, the chief medical director of the Chivar Clinic and
Urology Centre, Uzoma Azodo, said that figures showed that two new prostrate
cancer patients were seen every two weeks at the National Hospital, Abuja.

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FINANCIAL MATTERS: Understanding the sovereign wealth fund

FINANCIAL MATTERS: Understanding the sovereign wealth fund

The fate of the
Excess Crude Account (ECA) speaks to the need for clarity on the
reasons why we held funds in the account in the first instance; and why
we should look forward to keeping it (or anything that looks like it,
including through a Sovereign Wealth Fund – SWF). Two things matter in
considering these dimensions of the ECA. First, was the seeming
hurriedness with which government ran through the accounts; and second,
the purposes for which it was run down. Both these considerations have
fed popular angst over the spendthrift policies of managers of the
economy. Yet, the ECA started life as a fairly decent idea.

Convinced that the
thirty years during which the story of public infrastructure decay in
this country was told, and the economic waste that accompanied the
1970s oil boom could have been avoided if managers of the economy had
been more circumspect, the second Obasanjo administration (after 2003)
agreed an “oil-price-based fiscal rule”. According to the then finance
minister, the proximate goal of the rule “was to constrain spending by
transferring oil revenues to the budget in accordance with a reference
price,

together with a
ceiling on the non-oil deficit”. What remained of all revenues from
crude oil sales after this, ended up in the ECA.

Part of the problem
with the rule however, was that between 2004 when the rule was adopted,
and the enactment by President Umaru Yar’Adua in November 2007 of the
Fiscal Responsibility Act, the oil-price-based fiscal rule operated in
a legal vacuum. In other words, until this enactment, the only defence
all this time,

against bad governance and entrenched corruption were the good intentions of those in power.

We have since seen
that good intentions clearly would not do for managing an economy like
ours. Nonetheless, the volatility of our main revenue source makes
saving a portion of our earnings a wise choice. First (the
stabilisation function) to address the volatility associated with oil
prices and volumes in the international markets. Then (as part of a
trans-generational compact), to ensure that future generations benefit
from current consumption of what is essentially a non-replenishable
resource.

Having agreed to
save, the next query is what kind of instruments we should be looking
to put the savings in. The stabilisation part of this responsibility
recommends a short-term investment horizon, ensuring that funds are
available as needed; while the trans-generational compact demands a
longer horizon. Across this asset allocation spectrum, though, lies a
plethora of instruments into which we could put our national savings.

A couple of
arguments then matter. One, as argued by a recent IMF working paper on
the “Investment Objectives of Sovereign Wealth Funds”, “If a country’s
income is dependent on one (or even a few) real assets, it would be
natural according to portfolio theory to diversify this dependency by
investing in financial assets that have a negative or low correlation
with the real assets”.

In other words, we
must seek to put our national savings in investment vehicles whose
prices or yields move up when that for crude oil is down; and vice
versa.

Second, given that
national savings of the type contemplated here would be funded almost
100% from crude oil sales, asset allocation decisions would have to
factor in the country’s proven reserves of crude, the risk outlook for
oil prices on the international markets, and oil market cycles.

Worried by all of
this, it became important to understand what government is proposing to
do through the sovereign wealth fund (SWF). If the draft bill to
establish the Nigeria Sovereign Investment Authority serves any
purpose, the SWF has been set three investment objectives: a “Future
Generations Fund”; the “Nigeria Infrastructure Fund”; and the
“Stabilisation Fund”. In this sense, the proposed sovereign wealth fund
is everything that an SWF should be, bar being a pension reserve fund.
It aims in this regard to “establish a diversified portfolio of
appropriate savings and growth investments for the benefit of future
generations of Nigerians”; a “portfolio of investments specifically
related to and with the object of assisting the development of critical
infrastructure in Nigeria”; and a “portfolio of liquid investments to
provide supplemental stabilisation funding based upon specified
criteria and at such time as other funds available to the Federation
for stabilisation need to be supplemented”.

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Dial ‘F’ for fraud

Dial ‘F’ for fraud

On a Thursday night
in early January this year, Pascal Adeniyi had just had dinner and was
getting ready to go to bed when his phone beeped, indicating that he
had received a text message. He picked up the phone and lay back on his
pillow to read the message. Very quickly, he sat up on his bed with a
broad smile on his face as he read the text message for the second
time. The message said that he has been selected to participate in a
contest where he could win N10 million and a car. To participate, he
was asked to reply “yes” to the text.

The message was
from a short code, 555, used by his service provider, Glo, for
promotional purposes. Mr. Adeniyi replied to the message quickly and a
simple question was sent back to him. He answered the first question
and was immediately pulled into in a maze of unending question and
answer texts which lasted five days and cost him a total of N35, 000 on
his contract plan.

Mr. Adeniyi, like
millions of mobile telephone subscribers in Nigeria, has been a victim
of what appears to be a new kind of fraud currently flooding the
largely unregulated but booming short code and mobile telephone
value-added service industry in Nigeria. Mr. Adeniyi feels cheated but
at least, his loss was to a legitimate game, the widely advertised “Glo
Text a Million Season 2 Promo” in which many people have been shown on
television to have won prizes. There are, however, many people losing
money to scores of other ‘not advertised’ scam mobile telephone
value-added services.

10 digit scam

Tochi Ude, for
instance, was defrauded on his MTN phone by a different type of
deceptive value-added service with a number longer than most short
codes. While at work in November last year, he got a text on his phone
from an unusual 10 digit number, 9609908918.

“Hi, I tried to
call you, call me back on this number. +9609908918,” the message read.
He quickly dialled the number and an automated voice answered, asking
him to wait while his service was sorted. He waited.

“I thought it was one of my friends in India, because the numbers looked like an Indian code,” Mr. Ude said.

It turned out to be
an unending Interactive Voice Response (IVR) leading him through a maze
of options and encouraging him to stay longer online. Eventually, his
air time ran out. He spent five minutes on the call but never got to
speak to anyone and could not find out who it was that wanted to reach
him. He hung up and checked his balance. He was billed N500 for the
five minutes he spent with the IVR.

“Each minute cost
N100, but the text never said that,” he said. “The number was strange
and there was no detail about the service provider and the cost. Just
the one sentence in the message.”

Later, he contacted
his three friends in India and all said they didn’t try to reach him at
that time. He got the same text three times that month but never called
it after the first scam. A couple of his friends also got similar
messages in December but in a different form and from a different
number.

Ojoma Ocheja was
scammed by a similar scheme. Last week, she got a text from a 10-digit
number, 6703302973. The message said a secret admirer had sent her a
love song. The text instructed her to call +6703302973 to hear the song
and the identity of the person that sent her the song.

“There was no
information of the cost of the service in the text neither did the
service providers indicate their identity so I thought it was from
MTN,” Ms. Ocheja said. She called the 10-digit number. It turned out to
be an unending IVR. She dropped the call three minutes later, after she
sensed that there was something wrong.

“I didn’t hear both
the song and the identity of the sender,” she said. “Rather, the female
voice at the IVR continuously gave me options luring me on.”

Moneyed scheme

According to
statistics from the National Communication Commission, as at September
2010, there were 75.362 million active GSM lines in Nigeria; all of
them vulnerable to these scams which come in different formats across
networks of various service providers. If 0.1 percent of the active
subscribers spend at least a minute calling any of these services each
day, subscribers will lose N7.536 million daily, N52.753 million in a
week and N1.582 billion in a month. If 1 percent of the active
subscribers use the service at the same rate, they will be defrauded of
N15.82 billion in one month. All victims interviewed by NEXT say they
received the messages more than once and spent more than a minute on
the call.

“Curiosity will keep you on the call,” Mr. Ude said.

The telephone
numbers that were used to defraud Mr. Ude and others in November were
different from those other complainants got in December and yet,
different from the numbers being used in the scheme now. Each of them
is deactivated for the next scam — with new formats — a NEXT
investigation has revealed.

No regulation

Although this
segment of the mobile communication industry spins billions of naira
monthly, mostly for service not rendered, the sector is not regulated.
On April 8, 2010, Ernest Ndukwe, then executive vice chairman of the
NCC, which regulates telecoms and operations in Nigeria, met with his
fellow board members in Abuja for a public inquiry into the proposed
guidelines on short code operations in Nigeria. Eleven months later,
the guidelines are still in a draft form but millions of Nigerians have
been scammed and lost money and there is no way to trace the
perpetuaters of the scam. Basher Gwandu, the executive commissioner,
technical services at NCC, said the commission is still working on
regulating the short code industry. promising to “investigate further
including the Glo number”.

The only form of
regulation for the short code in the telecoms industry, currently, is a
non-legally binding code of conduct document offered by Wireless
Application Service Providers’ of Nigeria (WASPN). WASPN is a voluntary
organization based in Lagos and admits third-party content developers —
most of whom own the short code services and use traditional network
providers — who are willing to give them a platform.

“Not all content
developers are members of WASPN …neither are they obligated to join,”
Eunice Benjamin Ade, the business application manager of WASPN told
NEXT.

Mrs. Ade explained
that it is only members of the association that are bound by its code
of conduct. She disowned the various fraudulent service providers
mentioned in this story saying: “I want to assure you that it is not
emanating from any WASPN member, because they are bound by the code of
conduct,” she said.

As things stand, it
appears that the first line of security and protection from fraudulent
content developers is the service provider. The service provider is the
bridge between the subscriber and the content developer. The service
providers deduct money from the subscribers’ accounts and share this
revenue with the content developers.

However, since
there are no laws or guidelines for the short code industry,
subscribers are at the mercy of their providers’ ability to sniff out,
con artistes. At the moment, service providers don’t appear to be doing
a decent job at this. There are also, of course, promos that are
conducted by the service providers themselves, like the one Mr. Adeniyi
participated in. These come with the traditional “terms and condition”
for its use. However, a lot of its users like Mr. Adeniyi say they feel
cheated.

“I think it is a
fraudulent game,” Iyabo Oyelese, another subscriber said. She argued
that the game is “unreasonably too long” and does not provide
sufficient information about the cost.

Bode Opeseitan, the
spokesperson for Glo could not be reached for comments on these
allegations. He did not answer calls neither did he reply to text
messages from NEXT.

MTN promised to respond to questions concerning the fraud practised via its network, but the reaction never came.

While service providers drag their feet in providing protection to
their subscribers from fraudsters, and the NCC finetunes the short code
guidelines, experts advise subscribers to stay way from these schemes,
and when they feel they want to give it a shot, they should only to put
at stake telephone credit they feel they can afford to lose.

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The Ade Bantu Collective

The Ade Bantu Collective

“This album is a
journey of sorts, a musical pilgrimage to rediscover the essence of
urban Nigerian music in Lagos, the city of chaos”. These are the words
of singer and producer, Ade Bantu, on his recently released album ‘No
Man Stands Alone’.

The 10-tracker
album is a collaborative one, with the artiste featuring Nigerian and
Ghanaian musical acts; known and up and coming. Some of them include;
Lord of Ajasa, ageless Highlife musician, Fatai Rolling Dollar, Azadus,
Ghanaian artiste and MOBO 2010 award nominee Wanlov the Kubolor,
Sehinde Jo, Bantu’s brother Abiodun and MOBO award winner Nneka among
others.

Born to a Nigerian
father and a German mother, Adegoke Odukoya aka Ade Bantu hits the
African music world in 2005 with the release of an album, ‘Fuji
Satisfaction – Soundclash in Lagos’ in which he collaborated with Fuji
star Adewale Ayuba. That same year, the album clinched Bantu the KORA
award for ‘Best Group West Africa’ and ‘Best Group Africa’.

Bantu has worked
with various Nigerian and international artistes including British
reggae band, UB40, with whom he released a single titled ‘Rudie (Hold
It Down)’ in 2006. The song also featured German reggae musician,
Gentleman.

One of the songs
on Bantu’s latest album is a soundtrack to the forthcoming movie
‘Relentless’ directed by Andy Amadi Okoroafor. The movie features
singer Nneka and actor Gideon Okeke.

About the album

‘No Man Stands
Alone’ is about me having a great time and finding my place in the
Nigerian music scene. It is about trying to see where I fit in. I have
an unusual career when it comes to the Nigerian music scene. So where
do I see Bantu in all of this? The best way to answer this was to see
how people work here.

How long between last album and this?

My last studio
album was in 2005, but I have also done a live album since then.
However it’s been three years since I released anything. I was touring
a lot with my band, doing cross cultural projects like consulting on
African affairs for the former German president and organising hip-hop
workshops.

How long did it take to do this?

This album was
done without pressure. I first recorded 2 songs, testing the grounds.
Then I continued whenever I was free I just went to the studio. The
album has a lot of social commentary. I wake up and Nigeria is in my
face. I’ve got to comment on what I am seeing. I’ve got to change my
shock absorbers because the roads are bad. A lot of people are too
comfortable in being a pop star or a rock star. They forget to question
authority. Self-censorship in the music industry is really alarming. We
are the ones who need to talk about these things. I see people reacting
to the video of ‘Marching to Aso’ like wow, where did you shoot it? We
all have a sense of justice within us that tells us what is right or
wrong. It’s an impulse you’ve got to act on.

The album is solely collaborative, no solo track, any reason behind this?

Once I started the
first two collaborations I felt good about it and just continued.
Besides Bantu is a collective so I’ll never have a solo Bantu album. On
this album, I featured talented and established artistes who have not
had the opportunity to be widely heard.

One of the tracks
on the album is on the sound track for the movie, ‘Relentless’, I have
a single with Nneka titled ‘I’m Waiting’. I had recorded the song and
the director of ‘Relentless’, Andy Okoroafor asked me to send a couple
of songs for the soundtrack. He liked ‘I’m Waiting’ so much that he
made it the theme song for the movie. ‘Relentless’ is Nneka’s debut
film. Very arty. I had a cameo in it.

Opinion on the Nigerian Music Industry

We do not have a
music industry. What we have is a music scene. We do not have
structures so it’s basically a scene. An industry makes money. While I
think there’s been development in terms of audio and visual quality,
what constitutes structures in terms of distribution, concerts, artiste
rights and other important things is lacking. This is why artistes are
often taken advantage of. For those expecting the government to develop
the industry, I think that waiting on government is the wrong thing to
do. It’s like a grown man still crying for milk. Your government is not
interested in your welfare. Artistes need to take models that have
worked elsewhere and modify it. It’s a no brainer that when you play my
music, you need to pay me for it.

How do you monitor royalties?

In Europe, there
are provisions for providing information on the number of times a song
is played so that the artiste can get paid accordingly. It’s all a
reflection of the state of our society.

What would you call your type of music?

My music is good
music, half-caste music. Afropolitan. It’s Nigerian and urban African.
It’s a reflection of who I am and my different experiences reflect in
my creativity. I also believe in doing a song that stands the test of
time.

Is Bantu a one man show?

No, we perform live with a 10-12 piece band; which most times
includes my brother, Abiodun. ‘No Man Stands Alone’ has been released
worldwide though that wasn’t my original intention. However when I sent
it to my lawyer in Germany he liked it and sent it out and the response
was very positive.

Win Bantu’s album

Five copies of Ade Bantu’s latest CD ‘No Man Stands Alone’ are up for
grabs. To win a copy, email and tell us the title of Bantu’s debut
album. Send your answers to: culture@234next.com. The editor’s decision
is final.

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Here comes the excitement

Here comes the excitement

Last week, Nigerian
Idol entered the final stage – the Top Thirteen. The thirteen finalists
came on stage to deliver songs from the disco era. Aided by funky
costumes, they gave very energetic performances. There was a lot of
sexy dance moves especially from the girls. But the very good news was
that the contestants finally owned the stage. Of course now, they are
being backed by a full-on band including back-up singers and not just a
lone keyboardist.

The excitement on
the show increased a hundred percent as the contestants thoroughly
enjoyed themselves prancing around the stage. Actress and dancer, Zoe
managed a full split that almost shook the stage as the finale to her
rendition of ‘It’s Raining Men’ by Geri Halliwell (originally sung by
The Weather Girls). Alex, who sang ‘Kung-Fu Fighting’, did the song
justice by adding some martial moves in the appropriate parts of the
song. His fellow cool cat, Ola, also tried to add some fire to his
performance but although he was fun to watch, he didn’t quite actually
get there.

The one drab
performance came from George who has increasingly shown himself a good
ballad singer; but unfortunately, it would seem that up-tempo songs are
not his thing. Though his vocals were as good as ever on the Kool and
the Gang hit song ‘Celebration’, his performance was rather stiff and
he gave a rather dorky finish; he tried to punch the floor.

Toni, another good
balladeer and song interpreter, also had problems with her disco
choreography. For some ill-conceived reason, she kept grabbing the hem
of her dress which unfortunately was a bit too close to her crotch.
There are only two ways to explain the move, either it was based on
modesty as a result of the short hemline or that was just the best way
she knew how to move to Earth Wind and Fire’s ‘September’.

Still poor performance or not, it usually all boils down to votes. Come Thursday and it was Nina and Ola that got the boot.

We are praying for livelier roof-raising episodes. And though we
know disco cannot be sung on each episode of the show, we are still
keeping our fingers crossed.

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Exchange records more losses

Exchange records more losses

Investors at the Nigerian Stock Exchange (NSE) on Tuesday
recorded more losses on the value of their equities, as market closed trading
on negative note.

The NSE market capitalisation of the 201 First-Tier equities
closed yesterday at N8.541 trillion after opening the day at N8.575 trillion,
reflecting 0.39 per cent decline or N34 billion losses. The market had lost
N168 billion at the close of trading session on Monday.

However, the transaction volume recorded yesterday appreciated by
16.87 per cent to close at 330.40 million units exchanged in 6,349 deals as
against a decline of 22.69 per cent recorded on Monday to close at 282.72
million units exchanged in 5,768 deals. Market value also moved up on Tuesday
by 5.38 per cent to close at N3.28 billion as against a decline of 8.93 per
cent recorded the previous trading session to close at N3.11 billion.

Analysts at Proshare Nigeria, an investment advisory firm, said,
“The southward trend continued though waning momentum in sell activities.”

Gainers unchanged

At the close of trading on Tuesday, the number of gainers remain
unchanged as the 16 gainers recorded the previous session while losers closed
lower at 39 stocks when compared with the 50 losers in the previous trading
day.

Air Service and Neimeth topped the price gainers’ table with an
increase of 4.98 and 4.96 per cent respectively. Afro Media and Guaranty Trust
Bank followed in the chart with an increase of 4.84 and 4.42 per cent.

On the losers’ side, Royal Exchange and UBA led the price
losers’ chart with a decline of 5.00 and 4.98 per cent respectively. Africa
Petroleum and Presco followed with a decline of 4.96 and 4.94 per cent.

Bank leads

The banking subsector led the market transaction volume on
Tuesday with 242.41 million units valued at N2.15 billion exchanged in 3,829
deals, as against the 208.28 million units valued at N1.84 billion exchanged in
3,275 deals recorded on Monday.

The volume recorded in the subsector was driven by transaction
in the shares of Guaranty Trust Bank, Zenith Bank, UBA, Fidelity Bank, and
Oceanic Bank. The total volume of 133.76 million units valued at N1.45 billion
traded in the shares of the five stocks accounted for 40.49 per cent of the
entire market volume and their value represented 44.27 per cent of the market’s
value.

Meanwhile, the Securities and Exchange Commission announced on Monday that
all registered capital market operators are required to provide, within two
weeks, current information about their organisation as it is “currently updating
their information on the commission’s database.”

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Six banks ready for recapitalisation in two weeks

Six banks ready for recapitalisation in two weeks

Six of the country’s banks are ready to conclude the processes for their recapitalisation in the next two weeks.

Central
Bank of Nigeria (CBN) director of banking operations, Sam Oni,
disclosed this at the end of the Bankers Committee meeting held
yesterday in Abuja. He noted that with the progress recorded so far with
the regulators intervention with the ongoing reforms in the banking
sector, four banks would conclude discussions on the issue before the
end of the week,, while two others will follow in the next two weeks.

“The
Central Bank of Nigeria (CBN) intervention in the banking sector, which
led into a lot of reforms, has recorded a lot of progress since August
last year. By the end of this week, four of those banks considered very
important in terms of their systemic impact would have concluded the
deal on their recapitalisation, in terms of signing the memorandum of
understanding (MOU) with their partners. Before the end of the next two
weeks, two others would also reach that stage,” he said.

He, however, refused to mention the names of the affected banks.

This
milestone, Mr. Oni said, would serve as an assurance that the country’s
banking system is “no longer facing any systemic risks to the nation
economy, though there are other areas, like political risks and
security, that the government would need to address to support the
system, to make Nigeria an attractive investment destination to
investors.”

Managing
director, Citibank Nigeria, Emeka Emuwa, said the meeting resolved to
ensure that banks continued to support some critical sectors of the
economy, including power sector, infrastructure and agricultural
development, by building capacities to understand how to finance
projects in those sectors.

Though
he said approval was given, subject to further discussions on
modalities for the implementation of the policy, the Citibank boss said
each bank would be expected to set up desk within their organisation to
build capacity and expertise in assessing the risks and offer advisory
services on financing to the agricultural sector.

“It
is very risky to invest in the agriculture sector. It requires
specialised skills to deal with the risk in the industry. Therefore,
banks have resolved to build capacity, competence, and skills to be able
to provide the facilities required in the sector be able to adequately
assess the risks and render expert advisory services to investors in the
sector, he said.

According
to the managing director, United Bank for Africa (UBA), Phillips
Oduoza, though agriculture remains the highest contributor to the
country’s gross domestic product (GDP), only less than one per cent of
the annual industry loan portfolio has always gone to the sector,
announcing that the meeting resolved to increase the allocation by
dedicating at least 3 per cent of the total loans package for this year.

On
efforts to deepen the foreign exchange market, Mr. Oni said the meeting
approved guidelines to help in dealing with forward contracts, to avoid
speculation activities, adding that with the growth being experienced
with demand on corporate bonds, most organisations would begin to see
corporate bond as a means of financing their long term financing needs.

On
non-interest banking (Islamic banking), the CBN director said, with the
guidelines issued recently, most banks are ready to establish it either
as a full-fledged bank or subsidiary of a bank or a service provided
through a special window, given the number of unbanked population in the
country.

“It
is not a religious issue, but a viable product that people can
patronise, irrespective of their religious affiliation. This is a
product that has been there for a long time, which Nigerians can benefit
from. Over a trillion dollars of assets are in Islamic banks in 300
banks in 45 countries worldwide,” Mr. Oni noted.

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The end of a power broker?

The end of a power broker?

Former
FIFA and CAF executive member, Amos Adamu, will have to decide his next
move in the days ahead, as the FIFA Appeals Committee upheld the
decision to ban him from all football related matters. The ban had been
announced on November 17, 2010. But this might not be the end of the
matter as Adamu and four other officials, who were also sanction by the
FIFA Ethics Committee last year, can contest the ruling of the Appeals
Committee at the Court of Arbitration for Sport, which is empowered to
annul the verdicts of the Appeals Committee.

Football’s world
governing body, FIFA, on Friday announced the result of the appeals by
five of its officials suspended for breaching the FIFA Code of Ethics
in relation to the 2018 and 2022 World Cup hosting rights.

The statement on
fifa website read: “The FIFA Appeal Committee, under the chairmanship
of Judge Larry Mussenden (Bermuda), has confirmed the decisions taken
by the Ethics Committee on 17 November 2010 regarding the bans on
Reynald Temarii and Amos Adamu. (cf. media release:
http://www.fifa.com/aboutfifa/federation/bodies/media/newsid=1336779.html)
regarding the bans on Reynald Temarii and Amos Adamu – who were at the
time FIFA Vice-President and FIFA Executive Committee member – for a
breach of the FIFA Code of Ethics. In addition, the Appeal Committee
has partially upheld the appeals of Slim Aloulou, Amadou Diakité and
Ahongalu Fusimalohi, whose sanctions have been reduced.

The decisions,
which were taken during a two-day meeting of the Appeal Committee held
in Zurich on 2 and 3 February 2011, are as follows:

Reynald Temarii:
the appeal has been rejected and the decision of the FIFA Ethics
Committee confirmed. The sanction of a one-year ban from taking part in
any football-related activity and a fine of CHF 5,000 has been
maintained.

Amos Adamu: the
appeal has been rejected and the decision of the FIFA Ethics Committee
confirmed. The sanction of a three-year ban from taking part in any
football-related activity and a fine of CHF 10,000 has been maintained.

Slim Aloulou: the
appeal has been partially upheld. The infringements as stipulated in
the decision of the FIFA Ethics Committee have been confirmed. The
sanctions have been reduced to a one-year ban from taking part in any
football-related activity (instead of a two-year ban) and a fine of CHF
5,000 (instead of CHF 10,000).

Amadou Diakité: the
appeal has been partially upheld. The infringements as stipulated in
the decision of the FIFA Ethics Committee have been confirmed. The
sanctions have been reduced to a two-year ban from taking part in any
football-related activity (instead of a three-year ban) and a fine of
CHF 7,500 (instead of CHF 10,000).

Ahongalu Fusimalohi: the appeal has been partially upheld.

The infringements
as stipulated in the decision of the FIFA Ethics Committee have been
confirmed. The sanctions have been reduced to a two-year ban from
taking part in any football-related activity (instead of a three-year
ban) and a fine of CHF 7,500 (instead of CHF 10,000).

Galadima free to contest

This announcement
now leaves the coast free for former NFA Chairman, Ibrahim Galadima, to
contest a position into the FIFA executive committee during the annual
assembly of Africa’s football governing body, CAF, scheduled for
Khartoum, Sudan on February 23.

It is during the
CAF assembly that delegates will get to choose two of Africa’s four
representatives on FIFA’s Executive Committee, and Adamu, who was
listed as a candidate pending the outcome of his appeal, will now be
replaced.

The intrigues behind the appeal

The hearing,
chaired by Bermuda Football Association president Larry Mussenden, was
initially billed to last for two days, culminating in a verdict on
Thursday which did not come to pass. Even Adamu, in an interview with
the BBC, said he expected an acquittal by the end of work on Thursday.

“I don’t want to
say too much about the appeal but I know I’ll get a fair hearing,”
Adamu said, before adding: “It is important that I clear my name in
this matter and I believe that will be done at the meeting.”

Reports had emerged on Thursday suggesting that the outcome of the committee’s hearing will be delayed for two weeks.

According to the
reports, Temarii, who until his suspension in November, was the
president of the Oceania football governing body, had told media
outfit, Fairfax Media that FIFA will take more than two weeks to
announce the outcome of the hearing.

Back in January, he
had informed Fairfax Media that FIFA had formally written to him
informing him that he had been cleared of all corruption charges. After
hearing commenced on the appeal, Temarii had said that Mussenden had
through a personal email warned him not to expect anything until
February 18.

Stories out of
Zurich had it that FIFA’s Appeals Committee were divided over the fate
of the three Africans – Adamu, Aloulou and Diakite – which could
actually be a reason why the committee failed to emerge with a verdict
on Thursday as earlier scheduled.

A bribe to cover up a bribe?

Money was said to
have been offered to members of the Appeals Committee by an unnamed
official from the African football body supposedly on behalf of the
Africans and with a promise that Africa will vote for Blatter at FIFA’s
upcoming election in June.

There were also
reports of disagreement among committee members as some refused to
accept the alleged bribe, a situation that led to a German radio
station, Deutschlandradio Kultur, to describe the committee as being
“partially occupied by dubious characters” probably because some of its
members were reportedly handpicked from such countries as Guam, the
Solomon Islands and Belize.

The station also
made reference to the visit of the boss of the Nigerian Football
Federation (NFF) Aminu Maigari and the acting secretary general Musa
Amadu to FIFA’s headquarters, saying the visit more than a mere
courtesy call on FIFA president, Joseph Blatter.

Amadu was however
quick to deny that the visit was in connection with Adamu’s appeal. He
had gone to Zurich with Maigari over Nigeria’s desire for more FIFA
goal projects.

“It is important to put the facts straight. We are not here to be by the side of Adamu,” Amadu said.

“It happened that our visit coincided with Adamu’s appeal that was being heard at the FIFA Headquarters.

“Remember that we
had long sought for a meeting with the FIFA President. Originally, we
got an appointment for January 26, but we were eventually alerted that
Blatter would be otherwise engaged and another date had to be worked
out. That was how it came to be Thursday, February 3, the day of
Adamu’s appeal hearing.”

The Hayatou angle

A recent statement
by CAF president, Issa Hayatou declaring Africa’s support for Blatter’s
bid to seek another term in office come June this year may be linked to
the postponement of the appeal judgement till Friday evening.

Hayatou, who fought
a bitter contest against Blatter for the FIFA presidency back in 2002,
told the media in Khartoum that “I will never (again) contest the FIFA
presidency because I am happy with the way things are moving now.” He
then added: “We (CAF) are working hand in hand with Blatter and
everything is moving on well, without serious issues.”

The other seat up
for grabs is that of Cote d’Ivoire’s Jacques Anouma, who is also
standing for re-election. He, as well as Galadima, will be up against
Danny Jordaan of South Africa, former African Footballer of the Year
Kalusha Bwalya of Zambia, Mohamed Raouraoua of Algeria and Suketu Patel
from the Seychelles.

It would have been possible for CAF to elect a replacement to finish
Adamu’s term immediately after his three years suspension, in line with
Article 22(12) of the CAF Statutes. But Hayatou, a long-time ally of
Adamu, opted to leave the position vacant pending the outcome of
Adamu’s appeal.

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