Archive for nigeriang

Teachers pay the price for voters registration

Teachers pay the price for voters registration

As the government’s
directive that schools remain closed during the registration of voters
became public mid January, Zaria Academy, an elite college in Kaduna
State, summoned its teaching and non-teaching staff to make a point:
there is no break here.

For the two weeks
the exercise lasted in the first instance, the academy like a few
others across the country, held classes, offering parents – many
already keen at returning the kids to school- a sure sale that such
prolonged stay at home would only distort the students’ learning.

But according to
long-term staff there and others elsewhere, experts on private schools’
programmes and administration, such counter order, rather than aimed at
protecting the students’ interest, stands in many cases to serve a
vital live-wire for educational organisations whose economic wellbeing
tie squarely to turnovers derived solely from students’ pay.

“This is a private
business and even if they have money elsewhere which many times they
do, the owners will always prefer spending as they come,” said Joseph
Niaje, who has spent 22 years as a teacher in many schools, and now
runs Destiny Crèche, a day care centre for children in Kubwa, Abuja.

Even for relatively
bigger schools, many teachers say, salaries and benefits of staff are
spread through the year interspersed by new term resumptions, when
fresh fees are expected to help clear personnel and overhead spending.

However, that
balance will be altered by occasional interruptions to the calendars
annually, as with the two-week closure of schools ordered by the
federal government during the ongoing voters registration that would
now get another extension.

In the end, the
staff would assert that employees of privately-owned institutions where
monthly remunerations, and other running cost are chiefly fed by
quarterly student charges, would appear to lead a group hit by a
federal policy that has no direct bearing on their profession.

“Somehow we seem to be the last point,” says a middle-aged teacher who gave his name only as Simeon.

“They may not
accept it, but what makes the difference every new term is the fees and
now our January money cannot come and if they extend the registration
again, only God knows how long we will suffer.” For the two weeks of
the break leading to January ending, many of the teachers interviewed
and whose schools were closed said they had already missed the usual
dates when they get their monthly pay.

In many of the
schools, the pay had failed to come although the staff had been ordered
back to work by the authorities preparatory for the eventual resumption
of the students.

In a few schools
like the Zaria Academy where classes had resumed for some of the
students during the period, staff say they received their pay and that
funds were the major reason why students were recalled.

That position,
however, has been severely denied by management staff of some of the
schools who point out that the consideration of finance plays no role
and that their motive in defying the closure of the schools was purely
in the interest of the students.

“It is not about
finance, it is about the curriculum,” said Adebisi Adeniyi, Vice
Chairman of the Association for Formidable Education in Nigeria, a
group that says it seeks financial intervention for small and medium
schools that may face financial challenges.

Mr. Adeniyi said
although the schools are run as business with eyes on profit, concern
for the excellence of the students override immediate gains. “Even if
the schools were to open normally, the students will not return fully
until February and now that they are to open in February, they will
resume fully in March. Any time they come, the money will come.”

At the Zaria Academy where some students took classes throughout the
exercise, the principal, Gideon Wuyako, refused to answer questions
about the motive behind the school’s reopening.

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PERSONAL FINANCE: Invest regularly

PERSONAL FINANCE: Invest regularly

Most people are not as disciplined as
they would like to be when it comes to saving and investing. They may
save some money for some months and nothing at all for several others.

Yet for the vast majority of people,
the only way to achieve your financial goals is by earning through hard
work and saving and investing in a systematic and disciplined way over
several years.

Cost averaging, is a simple approach to
saving that helps you to save regularly whilst at the same time
building long-term financial security. It involves investing a fixed
amount on a regular basis rather than a lump sum, even when your
finances are stretched, and no matter what the market is doing. This
could be monthly, quarterly, or whatever suits you; you do not have to
time the market or look for the best entry point, you just invest
regularly.

It is almost impossible to time the
market as it is challenging to anticipate correctly its peaks and
troughs. For the average investor, and particularly for the smaller
investor who does not have lump sums to invest, what is required is an
investment strategy that allows you to maintain an even keel in rising,
fluctuating and falling markets.

Cost averaging accomplishes this and if
you can manage to apply this strategy to even a small amount of money,
with ease and efficiency, you will have a better chance of achieving
your goals.

Cost averaging is a particularly useful
tool in a choppy market as it provides a buffer for volatility. Even
though the value of your overall investments will fall as stock prices
fall, remember that you also bought more shares at lower prices. As you
will bed rip-feeding your funds into the market at different times, you
will be picking up investments at a range of prices; this reduces your
overall average cost.

Pay yourself first

Determine how much you can afford to
set aside each month. The amount you choose will depend on your own
particular situation. This could be a fixed amount each month that will
not change, or you might prefer to invest a percentage of your income,
sothat you invest more as your income increases; try to invest at least
10 percent of your income for your financial future.

What are you saving towards?

One critical factor to saving is,
knowing what you are saving towards. If you aresaving without any clear
purpose, you will eventually be tempted to dip into those savings to
satisfy your wants. If you have no savings whatsoever and currently
live from salary to salary, this is a good place to start. You need
short-term savings so that you are better prepared to deal with
unexpected expenses or emergencies. Start to build enough savings worth
about six months of your routine expenses. You also need to be
investing so that you can meet your medium to long-term goals such as
educating your children or being able to secure a comfortable and
fulfilling retirement for yourself.

Automate your savings

A most effective way to save is to put
it on autopilot so that you don’t have to think about it. If you are in
full time employment, your employer will already be withholding 7.5% of
your salary and transferring it to your Retirement Savings Account
(RSA) with your Pension Fund Administrator (PFA) on your behalf. This
is probably the most popular form of investment automation. And because
the money is removed at source, you are less likely to miss it.

But do not stop there. In addition to
your RSA you may set up a direct debit from your current account each
month and have it credited to an interest bearing account or an
investment account, such as a mutual fund. There are money market
accounts, mutual funds, and a variety of other investments that allow
you to designate a specific amount on a regular basis. Nowadays,
brokerage firms and banks have made the process so simple that you can
easily have your finances automated in a matter of minutes; and you
only need to set it up once. You then determine how much you want
debited each month and how frequently you want the withdrawals to
occur. You can usually even specify the date on which the withdrawal
should occur.

Automatically reinvest your dividends

You can also opt to automatically
reinvest your investment profits or dividends. For example, when you
sign on to a mutual fund account that makes periodic distributions, you
are given the option to re-invest your dividends by acquiring more
units in the fund before it enters your account. The fund manager is
authorised to automatically take that money and use it to buy
additional shares of the same fund instead of making it available for
you to withdraw.

While cost averaging can be a very
effective way to systematically build your portfolio overtime, it is
important to realise that there is no guarantee of profit; neither does
it prevent loss. Take a cursory look at your financial situation and
assess whether you will be able to contribute to your investment
account on a regular basis. If you are able to achieve this, remember
that even though the objective is to automate your finances, you should
continue to monitor your investments and make adjustments as required
and as your financial situation evolves.

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Pharmaceutical companies are underperforming at the Exchange

Pharmaceutical companies are underperforming at the Exchange

While the prices of
quoted healthcare (pharmaceutical) companies at the Nigerian Stock
Exchange have seen marginal improvement since transaction opened this
year, trading activities in the sector have reduced significantly in
volume when compared with the sector’s performance last month.

The over 10 million shares that the sector usually record weekly, on the average, has reduced to half.

Apart from the
recent global financial crisis that discouraged investors’ appetite in
the sector and affected market general performance, analysts say the
challenges facing healthcare companies in Nigeria may further
discourage investors’ confidence in the sector.

Available data at
the Exchange showed that only Fidson Healthcare and GlaxoSmithKline out
of the nine quoted stocks in the healthcare sector rewarded their
shareholders last year. Some other companies listed in this sector
include Evans Medical,

May & Baker Nigeria, Neimeth International Pharmaceutical, and Union Diagnostic & Clinical Service.

David Amaechi, an
executive member of the Shareholders Association of Nigeria,
said,”Manufacturing sectors generally have been finding it difficult to
enjoy operation in this kind of harsh operating environment.” Mr
Amaechi said investing in the healthcare companies should be for long
term for investors to get good return on their investment.

Sector challenges

Afrinvest West
Africa Limited, an investment bank, in a healthcare report this month
said that Nigerian health sector has remained “grossly underdeveloped”
in the last five decades despite seeming better off than their African
peers.

“Healthcare delivery in Nigeria is characterised by inefficient budget execution,

inadequate funding,
poor service quality and a shortage of qualified personnel essential to
the delivery of public health services,” the report said, adding that
the absence of effective methods of addressing the healthcare needs of
the people as well as the low levels of government expenditure,
“currently averaging 5.4 per cent of the total budget since 2008” have
contributed to the nation’s “dismal health statistics.” The report also
said that the Nigerian pharmaceuticals sector has consistently been
under utilized, from a capacity perspective, as a result of widespread
counterfeiting, infrastructural challenges and corruption, despite
evident demand for effective drugs. “In spite of the substantial growth
potential within the pharmaceutical and healthcare industry, the
elements of risk and uncertainty that currently subsist, limit
international interest/investment in the sector,” it said.

However, it noted
that the government has demonstrated its “willingness to make the
country self-sufficient” in terms of drug production, by restricting
imports through partial regulatory regimes and tackling counterfeits.
“The federal government’s restructuring of the National Agency for Food
and Drug Administration and Control (NAFDAC) in view of its past
successes has moderately improved confidence in the sector’s reform.”
Nigeria’s pharmaceuticals sector is regulated by NAFDAC.

Data from the
Pharmaceuticals Manufacturers Group of the Manufacturers Association of
Nigeria showed that the local market of pharmaceutical producers
accounted for an estimated 35 per cent of the market size.

Meanwhile, the
report said access to essential medicines is fundamental to the
realisation of the Millennium Development Goals (MDGs). “Despite
government’s noble intentions, poor availability, high cost and
irrational use of essential medicines continue to plague the
pharmaceuticals sector. Efficient provision of essential drugs depends
on appropriate selection, quantification, procurement, quality and
storage, distribution, human resources and information management,” it
added.

Olumide Ajayi, Director of Business School Netherlands
International, said in spite of these challenges, “businesses can still
explore a number of opportunities and develop initiatives and
programmes that will change the landscape of engagement and provide a
better space for businesses to move Nigeria closer to achieving the MDG
targets as it relates to heath.” Healthcare industry watchers say with
the campaign by NAFDAC in the war against counterfeit, fake and
substandard drugs, the healthcare sector will witness growth this year
and quoted companies in the sector can reward their investors
accordingly.

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‘Raw materials processing clusters will create more jobs in Nigeria’

‘Raw materials processing clusters will create more jobs in Nigeria’

There is hope of more jobs by re-invigorating the natural small
scale industrial clusters through capacity building and injecting new
technologies for increased productivity, says Peter Onwualu, the Director
General of the Raw Material Research and Development Council (RMRDC). Below is
excerpt from an interview he had with a NEXT reporter:

Taking research result to the industries

One of the projects
we started last year and we are continuing is the raw materials
processing clusters. One of the things we do is to give competitive
research grants to individuals and institutions who have the expertise
in doing research in value addition for raw materials sourcing and
processing. We have done this over the years and the question is how do
we move the result of some of these researches to the private sector in
order to use them for production purposes? If you look around the
country, there are naturally existing raw materials processing clusters
like the leather cluster in Kano; shoe, bags and textile cluster in Aba
and in Abeokuta. Our idea was to look at these clusters, study their
challenges and see how we can assist them to function better to produce
competitively by injecting technologies into existing clusters. In some
cases, the plan is to establish new clusters and we think this is a new
idea. In the past what we did was once we have research results, we
build a pilot plant and from there, we go into commercialisation but
now if we find out for example that people in particular community are
already processing cassava, we now go into such communities, work with
them, find out what their problems are especially with respect to
technologies, and then find the research centres where these
technologies have been developed then inject them into their
operations. In that way, they become more competitive.

Identifying the Clusters

As a first step, we
started what is called cluster mapping. This involves scientific
identification and analysis of existing clusters. For instance, around
the FCT here, you are aware that we have the Kugbo furniture cluster.
We are working with them. We have also done a number of such mappings
in every state using our state coordinators. We have a baseline mapping
that has taken us all over the country to identify those clusters that
already exist. The mapping also includes interacting with the operators
to know their problems, challenges. We also visited the knowledge
centres around them: the polytechnics, universities, research
institutes to find out what they can offer in terms of technological
input into these clusters around them. So that has been completed. The
report is almost ready but we also know that for you to start such a
programme, you also need to train people.

774 clusters to benefit

One of the things
we did last year was to conduct an international training programme in
collaboration with Swedish International Development Agency (SIDA) and
Pan African Competitiveness Forum. That Forum works on using clusters
to promote industrial competitiveness. We trained selected clusters
because after the baseline study we decided to start with at least two
clusters per geo political zone. The cluster training we had is to
prelude the emergence of at least one technologically viable cluster in
every local government. It is a tall order but it is part of our vision
2020. So we did this training and it was for Nigeria and Gambia. 30
Nigerian clusters participated at the training from all over the
country. They include the brass cluster in Bida; textile workers from
Aba; Tie and dye from Abeokuta; Otigba ICT cluster in Lagos among
others. Following that training, SIDA is now collaborating with us to
inject technologies into these clusters. What we told the different
clusters to do after the training was to go back, look at their
problems especially those ones that are technological and come up with
projects that will enhance their competitiveness. They were given some
templates for this. As I speak, they have all submitted their projects
and we are now synthesising them to be able to forward them to SIDA.
The arrangement is that SIDA will fund the project 50 per cent and raw
materials council will fund the remaining 50 per cent. The
beneficiaries will be these first set of clusters that have been
trained.

More Clusters to benefit in 2011

And in addition to
this training, we have now developed a blueprint for raw material
cluster development in Nigeria. This is ready for implementation and
then we have gone ahead to start with a few cases. One of the cases we
completed last year was the cashew nut processing cluster commissioned
in Ayangba, Kogi State. The plant is now functional but the entire
cluster is made up of a number of other cashew processing plants that
will be coming up in Enugu State, Abia State, Kogi State and Abeokuta
in Ogun State but we have already gone far in terms of discussion with
beneficiaries so that in 2011, you are going to see four of these
cashew processing industries all working together as a cluster. We used
last year to do a baseline and lay the foundation and started a few.
There are about three that we have ordered equipment for. One other
cluster we want to promote is the organic fertilizer production in
Emene industrial layout Enugu. In December 2010, the equipment for that
factory arrived from China and is now being installed. There is also
another one in Kebbi State on shea butter for processing shea nuts. The
equipment for that is being installed.

More money for SMEs

Clusters are
already in existence at rudimentary level with little technologies. To
make the programme very effective and successful, three different
bodies are involved. RMRDC represents the government and will provide
enabling environment through release of fund to research institutes
that develop technology that will be injected into the industry.
Ordinarily, the private sector man will not have the patience and time
to be going round looking for technology to use, the researcher may not
have the money to take his technology to the industries and that is
where the government comes in. We are also trying to bring in financial
institutions. We are discussing with NERFUND, Bank of Industry and some
commercial banks so that these small and medium scale enterprises can
source funding from the money market because there is no way we will
provide everything they need.

More jobs in the economy

In the last three
years, what has happened to the economy in terms of manufacturing is
that the figures are going down because a number of them are closing
down and some are relocating because of the challenges that the sector
faces. At the same time, government has a policy to diversify the
economy so that we don’t depend on oil all the time. One way to address
this is to see the emergence of more industries and we are targeting
the SMEs. Cluster exists as an informal sector. So what we are now
trying to do is, for any beneficiary, the number one step is that the
organisation has to be registered with the Corporate Affairs
Commission. Government gets revenue from the registration and it will
be easy to track the organisation for tax to increase revenue of the
government. An additional benefit to the economy is that each of these
industries must employ people.

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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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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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Court dismisses Taylor’s claims

Court dismisses Taylor’s claims

The Special Court
for Sierra Leone trying former Liberian President Charles Taylor for war
crimes on Friday dismissed a challenge to its impartiality that was
based on U.S. embassy cables published by WikiLeaks.

Mr Taylor, who
denies all charges of instigating murder, rape, mutilation, sexual
slavery and conscription of child soldiers in wars in Liberia and Sierra
Leone in which more than 250,000 were killed, had been allowed to use
the cables as evidence in court.

But on Friday the
court rejected a motion by Taylor’s lawyers seeking disclosure and an
investigation into the identity of sources that the U.S. government has
within the court’s trial chamber, prosecution and the registry. In its
filing, Mr Taylor’s defence said the cables “raise grave doubts about
the independence and impartiality of the Special Court’s prosecution of
Charles Taylor.” One of the diplomatic cables leaked by WikiLeaks last
month contained comments made by a U.S. ambassador that if Mr Taylor was
acquitted or given a light sentence, his return to Liberia could “tip
the balance in a fragile peace.” Another cable stated that U.S. contacts
in The Hague-based court’s prosecution and registry said one of the
judges may be trying to time proceedings so as to be in charge when the
judgement was handed down.

The judge named in
the cable, Julia Sebutinde, rejected the allegation and excluded herself
from the ruling on the cables to ensure objectivity. In its ruling, the
court said the cables did not demonstrate that such contacts may have a
relationship with the U.S. government capable of interfering with its
independence or impartiality.

Officials from the
court’s registry and prosecution interact on a regular basis with
governments from a number of countries as part of their official
functions, it added. Both the prosecution and defence have already
finished presenting their evidence, but the court ruled in favour of a
defence motion seeking to re-open its case for the “limited purpose” of
admitting into evidence two U.S. cables.

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Protesters demand political reforms in Jordan as Islamists join Tunisian dissent

Protesters demand political reforms in Jordan as Islamists join Tunisian dissent

Islamists, leftists and trade unionists gathered in central
Amman Friday for the latest protest to demand political change and wider
freedoms. A crowd of at least 3,000 chanted: “We want change.” Banners and
chants showed a wider range of grievances than the high food prices that
fuelled earlier protests, and included demands for free elections, the
dismissal of Prime Minister Samir Rifai’s government and a representative
parliament. The protest after Friday prayers was organised by the Islamic
Action Front, the political arm of the Muslim Brotherhood which is the only
effective opposition and biggest party, but included members of leftist parties
and trade unions.

Jordan’s protests, as in several Arab countries, have been
inspired by the uprising that overthrew the Tunisian president. “After Tunisia,
Arab nations have found their way towards the path of political freedom and
dignity,” said Zaki Bani Rusheid, a leading Islamist politician.

Demonstrations have taken place across Jordan calling for
reversal of free-market reforms which many blame for a widening gap between
rich and poor. Jordan is struggling with its worst economic downturn in
decades. The government has announced measures to reduce the prices of
essentials create jobs and raise salaries of civil servants. Protesters say the
moves do not go far enough.

King calls for openness

King Abdullah told lawmakers Thursday the government must do
more to ease the plight of Jordanians and urged a faster tempo of political
reforms. “Openness, frankness and discourse over all issues is the way to
strengthen trust between people and government entities,” the monarch was
quoted as saying in a palace statement.

“Everything should be put in front of people. There is nothing
to be afraid of,” said the 49-year-old monarch, who has faced stiff resistance
from a conservative establishment to reforms they fear will empower the
Islamists. He urged the 120-member assembly to amend an electoral law
criticised as designed to under-represent cities in favour of
sparsely-populated tribal areas to ensure a pliant assembly. Under the
constitution, most powers rest with the king, who appoints the government,
approves legislation and can dissolve parliament.

Islamists march in Tunis

Also, Islamists marched through central Tunis on Friday,
demanding religious freedom, while police fired teargas at anti-government
protesters who have camped out around the prime minister’s office.

The march by about 200 people was the first significant Islamist protest
since the fall of president Zine al-Abidine Ben Ali, who ran a strictly secular
state in which Islamists were often jailed or forced into exile. Some carried
placards reading: “We want freedom for the hijab, the niqab and the beard.”
Under Ben Ali’s rule, women who covered their hair by wearing the hijab, in the
Muslim tradition, were denied jobs or education. Men with long beards were
stopped by police. “We demand the revision of the terrorism law … and say no
to the war on the niqab,” one woman told Reuters TV, her face entirely covered
by a black veil, or niqab. Islamists played no visible part in the “Jasmine Revolution”
that toppled Ben Ali, but when the Ennahda, the country’s largest Islamist
movement, was allowed to contest elections in 1989, it came second to the
ruling party. Since Ben Ali was forced to flee to Saudi Arabia on January14 in
the face of violent unrest over poverty and political repression, protesters
have been gathering in Tunis to demand that the new interim government be
purged of Ben Ali loyalists. Prime Minister Mohamed Ghannouchi said 12
ministers would be replaced, purging members of the former ruling party
including the interior, defence and foreign ministers.

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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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