Archive for nigeriang

Coca Cola shareholders deserve more

Coca Cola shareholders deserve more

While the
management of the Nigeria Bottling Company, the bottlers of Coca Cola,
is still unyielding on its plan to delist its shares from the Nigerian
Stock Exchange, some operators have condemned the action saying it is a
bad omen for the market.

NBC had last month
announced that its parent company,Coca-Cola Hellenic Bottling Company
S.A., intends to invest up to N45 billion in Nigeria between 2011 and
2013 in order to strengthen its commercial base.

Consequently, the
proposed transaction will involve the cancellation of part of the share
capital of NBC, so that it would become a wholly-owned subsidiary of
Coca-Cola Hellenic.

The proposal includes a cash payment of N43.00 per NBC share as consideration to the minority shareholders.

For an investor who
has been a shareholder of the NBC for over a decade, the delisting plan
is “nonsense.” Albert Edun, an executive member of the Nigerian
Shareholders Solidarity Association, said, “I still don’t know why they
are doing that even with all the explanations they have given for the
action. I bought NBC shares longtime ago; over 10 years now. Yes, it is
true that the company paid its shareholders good dividend when the
going was good.

But we must not
forget that the same shareholders endured the pains of no dividend when
NBC could not reward its investors.” “Now they want to delist and pay
us ridiculous N43 per share. All that is nonsense and shareholders must
condemn such act. You see, all these Greek investors are funny.
Indirectly they are telling us they no longer have confidence in the
Nigerian stock market.

They want to delist their company but also want to continue to do business in our country without been listed,” Mr. Edun said.

He said this is the
time investors need government’s intervention. “Government must come to
our rescue and not allow this kind of thing to happen,” he added.

Negative impression

Tunde
Oladapo-Dixon, Chief Executive Officer, StockPicks Consulting, a stock
broking firm, said the delisting plan of the NBC “is a bad omen for our
capital market because the company is one of our defensive stocks. It’s
a blue chip stock.” Mr Oladapo-Dixon said, “For them to be leaving the
market, it creates a lot of negative impression to the likes of MTN,
Glo and other big giant companies that may be wooed to the market. The
delisting plan really does not give our market much reputation, ”
adding that “it will not be a good step if the Exchange and the
government allow NBC to be delisted from the stock market just like
that.” The National Chairman of the Progressive Shareholders
Association of Nigeria, Boniface Okezie, said with government’s
intervention in the matter, “confidence will return to the market and
the market in return can help the government to grow the economy.” Mr
Okezie said, “I think it is time for the government to discover the
importance of the capital market in wealth creation.

Blue chip companies
like NBC should not be lost. In fact, we even need more companies to
come on board.” Victor Ogiemwonyi, chief executive officer of
Partnership Investment Company, a stock broking firm, in an article in
NEXT last Tuesday said that the price of the NBC stock is well above
the N43 offer.

“A great majority
of analysts think investors should get more for their stock if they
sell at all. They put the value at anywhere between N67, an earnings
basis valuation and also closer to its peak price during the last bull
market, or around N105 using its book value before revaluation,” Mr
Ogiemwonyi said.

Profit declines

In its interim
financial result for the first quarter ended March 31, 2010, the NBC
recorded a 76.96 per cent decline in profit after tax of N243 million,
as against the N1.055 billion posted in the comparable period of 2009.
However, NBC’s turnover during the period shows an increase of 15.46
per cent; from N23.199 billion in 2009 to N26.787 billion in 2010.

The Coca Cola
bottler had, in its third quarter ended September 30, 2009
results,recorded a 135.21 per cent increase in profit after tax of
N2.291 billion,as against N974 million in 2008; while its turnover in
the period in view grew by 14.63 per cent from N56.474 billion in 2008
to N64.740 billion in 2009.

NBC last declared
bonus to its shareholders in April 2004 and only proposed a dividend of
50 kobo last year May following its 2009 financial year end. The
dividend was expected to be paid last year December 31.

Meanwhile, the
spokesperson of the NBC, Adeyanju Olomola, has refuted claims that some
Nigerian employees of the company were recently replaced by Greeks and
Europeans following the new investment plan of the company.Mrs Olomola
said, “We did not replace Nigerian employees with Greeks or Europeans.
The company reviewed its operations in a bid to optimise same and
embarked on a restructuring exercise last month (November). This
affected some of our employees; however,we ensured fair and equitable
compensation not only in line with, but beyond what is stipulated by
regulatory requirements.”

Click to Read more Financial Stories

Banks face liquidation rumours again

Banks face liquidation rumours again

Mobile phone text
messages warning customers to withdraw their money from Oceanic,
Intercontinental and Unity banks, circulated last Friday, causing a
stir.

“If you know anyone
that has money in Oceanic, Unity and Intercontinental Bank, tell them
to go and withdraw their money because information reaching us is that
they may go in distress soon,” a version of the text message read.

Investigations
revealed that the text message probably went out because the three
banks reporteldy laid off a large number of staff without due process.

Oceanic Bank issued a press statement saying that the text message was the handiwork of mischief makers.

“The management of
Oceanic Bank has flayed misleading text messages on purported
liquidation notice served on some banks by the Central Bank of Nigeria
as the handiwork of mischief makers,” it read.

It stressed that
there was no truth in the purported liquidation notice as no bank
operating in the country was under any threat of liquidation by the
Central Bank. The bank’s management refuted claims of retrenchment,
adding that its inclusion among banks to be picketed as reported in the
newspapers was based on misinformation to labour leaders.

Mohammed Abdullahi, the Central Bank’s spokesperson, equally said that there is no truth in the text message.

“The Central Bank
wishes to state categorically that no such liquidation notice has been
issued and there is therefore no plan to liquidate any of the three
banks and members of the public are advised to disregard these
messages,” Mr. Abdullahi said. “All depositors and customers of
Oceanic, Intercontinental and Unity banks are hereby advised to
continue to conduct their business with the banks,” he added in a
statement issued last Friday.

In other news, the Association of Senior Staff of Banks, Insurance
and Financial Institutions (ASSBIFI) said it would continue on its
planned strike, expected to take off on Tuesday,

Click to Read more Financial Stories

Bank unions insist on Tuesday picketing

Bank unions insist on Tuesday picketing

Leaders of bank
workers unions have insisted on carrying out their planned picket of
banks on Tuesday, even though they have started negotiations with the
management of the affected banks towards a possible resolution of the
issue.

Sunday Salako, the
president of the Association of Senior Staff of Banks, Insurance and
Financial Institutions, who confirmed that the leadership of the
affected banks (Oceanic, Intercontinental, and Unity banks) have begun
talks with the union, said the beginning of negotiations does not mean
the scheduled picketing has been called off.

“It is true that we
have started negotiations and we are trying to resolve the issue, but
that does not mean that we have called off the scheduled picketing.
Right now, we are discussing with the affected banks. What if we put
pen to paper and realise that we cannot reach a compromise? That we are
discussing definitely does not mean we have reached a conclusion” he
said in an interview yesterday.

Statements from the
affected banks over the weekend had stated that none of the banks would
be picketed and that customers should continue their normal banking
transactions as negotiations are going on between the banks and union
leaders.

Intercontinental
Bank, in a statement made available on Sunday, stated that “Given these
developments, the managements of the three banks have advised customers
to go about their businesses as none of the banks’ branches would be
picketed.”

John Aboh, the
Group Managing Director, Oceanic Bank Plc, in a statement issued by the
bank on Friday, also said there would be no picketing in any of the
bank branches.

“Oceanic Bank has
the highest regards for its workforce and has always involved relevant
Labour Unions in its activities. We are working closely with the
Association of Senior Staff of Banks, Insurance and Financial
Institutions (ASSBIFI) to set the records straight. We want to reassure
our customers that there will be no picketing in any of our branches
and urge them to remain calm and go about their normal businesses with
the bank,” the statement read.

Seeking a solution

Investigations
reveal that the management of the three affected banks met with the
bank union on Friday with a view to resolving the planned industrial
action.

Last week, the two
unions in the banking sector – ASSBIFI and its junior staff
counterpart, National Union of Banks, Insurance and Financial
Institutions Employee (NUBIFIE), had threatened to shut the three
affected banks on Tuesday over the controversial exit of some of their
staff.

Intercontinental
Bank had recently relieved 165 staff of their duties while Unity Bank
had, also two weeks ago, asked some of its staff to leave.

The banks claimed
that the layoffs were on grounds of non-performance and disciplinary
actions which they said is based on the terms of their employment,
which states that underperforming employees would not be retained by
the organisation.

Click to Read more Financial Stories

Nigeria sees Eurobond, wealth fund before polls

Nigeria sees Eurobond, wealth fund before polls

Nigeria plans to go
ahead with its delayed $500 million debut Eurobond in two to three
weeks and expects a bill to create a sovereign wealth fund to pass
under the current administration, the finance minister said on Friday.

Africa’s top crude
oil exporter first announced plans to borrow in the international bond
market in September 2008 but has put the issue on hold for several
times, most recently in December, citing adverse market conditions.

“Very soon, in the
next two to three weeks, we will be going … to the market with the
$500 million Eurobond,” finance minister, Olusegun Aganga, told a
briefing with journalists, adding that roadshows were planned in the
United States and Europe.

The aim of the
10-year bond is to set a benchmark in the global market for Nigeria
rather than to raise funds, meaning the pricing is considered more
important than the timing. Nigeria, last year, appointed Deutsche Bank
and Citigroup as bookrunners for the Eurobond and named Barclays
Capital and FBN Capital, a subsidiary of Nigeria’s First Bank, as its
financial advisers. It had planned to take a roadshow to the United
States in December but postponed the issue due partly to volatility in
global markets caused by the Greek and Irish debt crises.

Analysts have grown
increasingly concerned about the state of the public finances in
Africa’s third-biggest economy, particularly as presidential and
parliamentary elections in April approach and costly campaigns get
under way. But most analysts say the relatively small size of the bond
issue, combined with appetite for high-yielding assets and a paucity of
West African debt issues, means investors would be ready to shrug off
those short-term risks. Mr. Aganga and Citi’s chief executive, Vikram
Pandit, have said they expect significant demand for the issue.

Wealth fund

President Goodluck
Jonathan has come under criticism from his main election rival, former
vice president, Atiku Abubakar, over the state of Nigeria’s finances
and plans for “excessive borrowing” in this year’s budget.

Despite higher oil
prices and output, Nigeria’s foreign reserves of $33 billion were down
almost a quarter on a year earlier by the start of December and the
2010 budget deficit is expected to have topped 6 per cent of GDP.

The Excess Crude
Account (ECA), into which Nigeria is meant to save oil revenues above a
benchmark price, has fallen to $300 million from $20 billion four years
ago.

Mr. Aganga defended
the 2011 budget – which represents a drop in approved spending over
2010 – saying the government was already taking steps to rein in
recurrent expenditure and that comprehensive audits of bodies including
state-run oil company NNPC were underway to ensure leakages were
plugged.

He said the lower
reserves were a result of maintaining a stable exchange rate in the
face of increased forex demand, spending on power projects, and the
allocation of $1 billion of seed funding for a sovereign wealth fund to
replace the ECA. A bill before parliament to create the fund should be
passed before the April elections, he said.

“I expect and hope
that we will get the bill passed before the end of this administration
… I think it will be one of our major achievements as a country,” Mr.
Aganga said.

The fund is meant
to divert more of Nigeria’s revenues towards badly needed
infrastructure development, save for future generations, and establish
a financial reserve to weather economic downturns.

It is hoped that
the fund will create a much firmer legal framework for the management
of Nigeria’s oil wealth than the ECA, disputes over whose
constitutional legality make it difficult for the federal government to
defend the savings from the country’s 36 cash-hungry state governments.

REUTERS

Click to Read more Financial Stories

Bidders flock to Shell’s Nigeria sale

Bidders flock to Shell’s Nigeria sale

At least 18
consortia are working on bids for Nigerian oil rights being sold by
Royal Dutch Shell and partners, the Sunday Times newspaper said, citing
unidentified sources close to the process. Sources reveal that Nat
Rothschild, scion of the banking dynasty, was backing one group of
bidders, while Russian gas group, Gazprom, was leading a bid with
Nigerian resources firm, Equinox Group.

London-listed oil
industry services group, Petrofac, has joined forces with Nigerian gas
firm, Seven Energy, to bid for one of the blocks being sold, while
London-listed oil group, Afren, also plans to make an offer, it added.

Shell, which is selling four onshore fields along with partners Total and Eni, declined to comment.

Click to Read more Financial Stories

NSE moves shares worth N6b in depressed trading

NSE moves shares worth N6b in depressed trading

Transactions at the
equities segment of the Nigerian Stock Exchange closed for the week on
a depressed note on Friday, with the market capitalisation sliding by
N106 billion.

The News Agency of
Nigeria (NAN) reports that the market capitalisation closed at N8.361
trillion from the N8.467 trillion recorded on Thursday.

The All-Share Index
also depreciated by 1.26 per cent or 334.90 points to close at
26,169.86 against 26,504.76 recorded on Thursday.

Shares totalling
673.13 million and valued at N5.99 billion were exchanged in 8,034
deals on Friday, compared with the 701.73 million shares worth N8.30
billion traded in 7,471 deals on Thursday.

The banking
sub-sector continued to dominate other sub-sectors with 543.73 million
shares valued at N4.99 billion traded in 506 deals.

Click to Read more Financial Stories

South Africa stocks drop on miners

South Africa stocks drop on miners

South African
resource-heavy stocks slipped on Friday, as a stronger dollar induced
investors to take profit from firmer mining shares.

The rand reversed
earlier losses against the greenback, despite data showing the Central
Bank took advantage of its gains in December to build up foreign
currency reserves.

The JSE Top-40
index of blue chips was down 0.68 per cent to 28,415.54, while the
broader All-share index dropped 0.58 per cent to 31,929.72.

“It’s just the miners that have brought us down,” David Shapiro, a trader at Sasfin said.

The JSE gold mining indices fell 0.97 per cent, bringing its decline in the year-to-date to 5.1 per cent.

Click to Read more Financial Stories

Malawi gets $350 million grant for power supply

Malawi gets $350 million grant for power supply

The U.S. government
Millennium Challenge Corporation has given Malawi a $350 million grant
to overhaul its energy sector, whose dire condition is a major brake on
the African state’s economic growth.

A U.S. statement
said the five-year grant should help improve Malawi’s erratic power
supply, which economists say costs the country about $215 million a
year and deters new investment.

According to its
energy ministry, Malawi had 63 days of power outages in 2009, one of
the worst performances in the sub-Saharan region.

Its current
installed electricity capacity is 282.5 MW compared to estimated demand
of 344 MW, and only seven per cent of the 13 million population have
access to electricity, with the rest relying on firewood and charcoal
for energy.

Click to Read more Financial Stories

Nigeria missing in action again

Nigeria missing in action again

Africa’s youngsters
yesterday began their quest for honours in the African U-17
Championship; Rwanda 2011. The tournament which runs through January
22, 2011 also serves as the continent’s qualifiers for the FIFA Cadet
World Cup and for the umpteenth time, Nigeria is missing in action.

It would recalled
that the Golden Eaglets failed in their bid at qualifying for the event
after being knocked out of the race by the cadet team from the
Democratic Republic of Congo, the tie which they lost 3-1 over two legs.

The country was
also in a similar situation in 2008 as it failed to make it to the
Algiers 2009 edition under coach Alphonsus Dike who after winning the
first leg 2-0 in Port Harcourt surprisingly lost 0-3 to Benin Republic
in the return leg and thus crashed out of the qualifiers only to
qualify for the World Cup by virtue of being host.

For many, the
continuous ouster of the U-17 national team from the African tournament
is unacceptable going by the abundant talents that abound in the
country and the exceptional performances recorded in the past at this
stage both on the continent and in the world. Nigeria and Brazil have
the highest number of FIFA U-17 World Cup titles (3) and the Golden
Eaglets have two African titles to their credit.

Playing by the rules

While accepting the
responsibility for his team’s failure, coach of the Golden Eaglet’s,
Monday Odigie, says he still prides himself for daring to do things
differently by sticking to strictly football players who were under 17
years of age.

“Tournaments like
the U-17 is a developmental programme in which talents are to be
discovered and nurtured, it shouldn’t be all about winning. That, I
believe, is the only way we can find capable replacements for our aging
players. My ambition was to qualify the team but as it turned out, we
were not able to make it at the long run,” he said.

He continued: “For
the very first time, we had a team of players majorly drawn from
secondary schools and academies across the country and there was no
single player playing in the league as it used to be the case before. I
would have been happy to see them showcase their talents at the Africa
Championships like their other mates.” he said

Looking ahead

Already, Odigie
revealed that he has submitted his new set of programmes to the Nigeria
Football Federation and only expecting their go-ahead to begin
preparations in earnest for future engagements.

“I am always an
advocate of early preparations and that I believe is the key to
succeeding. We have seen and learnt from the mistakes of the past and
we would want to guide against that in our future endeavours,” he said.

Despite the earlier
setback, Odigie maintained that he would stick to playing by the rules;
which is to use only players still within the specified age-limit.

“If you know me
well, you would see me at different locations where youth tournaments
are been played like the Principals’ Cup, Shell Cup etc, those are
examples of tournaments where one can get genuinely young talents and
that is what we will be doing not just going for old players all in the
name of getting results,” Odigie reiterated.

Previously touted
to assist Super Eagles coach Samson Siasia, Odigie says he has been
using his time to better his knowledge of the game with refresher
courses here and there.

Defending the crown

Meanwhile, as the
ninth edition of the CAF U-17 Championship finally kicked off in Rwanda
yesterday, Lamin Sambou, Gambian U-17 coach, says he has no doubt his
team will retain the African crown. The Baby Scorpions are the
defending champions of the biennial cadet championship, and following
an initial triumph on home soil in 2005, Sambou says his charges are
ready for the challenge backed by a 10-day training camp in Egypt.

For the Baby
Scorpions trainer, the preparations in Egypt has placed them in a good
stead to complete a hat-trick of triumphs, making them the first-ever
country to achieve that feat.

“This is a strong
team in all departments. I have been working with these boys day and
night and I know what they are each capable of giving for their
country,” Sambou was quoted by West Coast Radio, a local radio station.

“We have great confidence in our team and our chances in Rwanda,” he added.

The Gambians will
begin their defence against Congo today; play Mali 72-hours later
before engaging Cote d’Ivoire on January 15 for a place at the next
round.

Knowing very well
that a place at the last four automatically earns them a spot at the
FIFA U-17 World Cup slated for Mexico later in the year, Sambou assured
that his charges will go all out to realize that dream.

“We will certainly qualify,” he declared in a confident tone. In the other match for today, Cote d’Ivoire will take on Mali

Click to Read More Sports Stories

Unending crisis in Nigerian football

Unending crisis in Nigerian football

Peace and harmony
appear to have become extinct in Nigerian football after the recent
face-off between the Nigeria Football Federation (NFF) and the Nigeria
Premier League (NPL).

The round leather game has been hit by crisis after crisis in recent times with the trend becoming worse in the last two years.

If it’s not members
of the football federation slugging it out with one another over travel
allowances or positions within in-house committees, it will be the NFF
engaging in a war of words with other members of the football
community. The second half of 2010 was particularly plagued by crises,
which made nonsense of any efforts to administer the game.

Some of the
conflicts have spilled into this New Year, with combatants heading to
the courts — most notably Harrison Jalla and his National Association
of Nigerian Footballers (NANF), dragging the NFF to court over the
legitimacy of its current board led by Aminu Maigari.

There is also the
case over who should be the Premier League’s title sponsor. Globacom
had filed a suit at a Federal High Court in Lagos after the NPL awarded
the sponsorship right to rivals telecommunication company MTN. Globacom
is claiming amongst other things that, MTN did not participate in the
bid process and therefore, cannot be named league sponsor.

NFF versus Owumi

By far the biggest rift presently engulfing Nigerian football is undoubtedly the face-off between the NFF and Davidson Owumi.

Owumi, a former
Nigeria international whose entire club career were with club sides
based in Nigeria, was last year elected chairman of the NPL. But the
NFF, at the end of its last General Assembly in Uyo, the Akwa Ibom
State capital on December 29, 2010, announced that he was no longer the
head of the league body as he was not qualified, in the first instance,
to contest in the election that had ushered him into office.

In reaching this
verdict, the NFF based its decision on the ruling of an Arbitration
Panel headed by Akin Ibidapo-Obe, an associate professor of law from
the University of Lagos and set up by the immediate past board headed
by Sani Lulu.

The NFF board under
Lulu had set up the panel as a means of resolving the imbroglio that
ensued following Owumi’s emergence as the chairman of the NPL at the
end of the league body’s May 8, 2010 election.

Victor Baribote,
who had vied for the post of NPL chairman at the May 8 polls, albeit
unsuccessfully, along with current Kaduna State Commissioner of Sports,
Mohammed Abdul-Azeez, had appealed against Owumi’s election saying he
was not qualified to vie for a position within the NPL. Abdul-Azeez was
the General Manager of the Kaduna State government-owned Ranch Bees at
the time of the election.

They based their argument on the grounds that Owumi was not the head of any of the country’s Premier League sides.

Owumi had
previously been the CEO of Enugu Rangers, a club he had played for, and
it was from that position that he to become the chairman of the Club
Owners Association, a body consisting of over 50 professional club
sides.

However, he was no
longer the Rangers boss in the months leading up to the NPL election
but after signifying his intention to run for a position within the
board of the NPL, his nomination forms were endorsed by his successor,
Paul Chibuzor thus confirming Owumi, even if not explicitly, as a
member of the Rangers board.

Owumi’s endorsement
was however denounced by Sam Onyishi, who was the chairman of the
Rangers Management Board, the club’s holding company. Onyishi, later
did a U-turn on his earlier decision and eventually sent a letter
endorsing Owumi’s nomination after the expiration of the deadline.

Some, however,
argued that the NPL recognised the initial endorsement letter from
Chibuzor as the league body only does business directly with the club
and not with the holding company.

But even if that
was the case and Owumi was a member of the Rangers board at the time of
the election, Baribote’s argument is that even though he was still the
chairman of the Club Owners Association and later the Chairman of
Chairmen, Owumi was no longer the CEO of Rangers, and as such, was not
in a position to vie for the post of NPL chairman.

But did the NPL election guidelines state that only club bosses should vie for the post of NPL chairman?

“There is nowhere
in the election guidelines where it was stated that only chairmen of
Premier League clubs can become chairman of the NPL,” said Emeka Nwani,
the media officer of the league body. “Anybody, so long as he has been
endorsed by a club was free to contest.” Nwani’s view is similar to
that of Paul Bassey, a sports journalist and member of the media
committees of FIFA and CAF.

Reneging on an agreement?

Writing in his
weekly column in a Nigerian newspaper, Bassey, who was initially the
secretary of the Electoral Committee set up to oversee the May 8 NPL
election before being removed following petitions from those who said
he was a close friend of Oyuki Obaseki, a former chairman of the NPL,
noted that Baribote and Abdul-Azeez “were at the NPL Congress which
took place on January 20, 2010 at the La Monde Hotel in Abuja where
decisions were made to streamline election guidelines.”

One of the
decisions taken at the meeting which had in attendance representatives
of all the 20 Premier League clubs, according to Bassey, was that owing
to the disparity in the composition of the management committees of the
various clubs, with some of them having chairmen while others had sole
administrators or general managers, “the NPL Congress decided that any
member of management or executive committee of any club was free to
contest election as chairman of chairmen.”

And it was through
that platform, as the chairman of chairmen, that Owumi rose to become
the NPL’s boss before the subsequent appeals filed by Baribote and
Abdul-Azeez.

However, in line
with the Standard Electoral Code (SEC) of FIFA, the NPL set up an
Appeal Committee which, after going through the matter, confirmed Owumi
as the chairman of the NPL which, according to Article 12 (4)
explicitly states that “the decisions of the election appeal committee
are final and may not be monitored by any government body.”

A similar view is
also to be found in the NPL’s 2010 Election Guidelines under Article G
(iii) which states that: “Decisions of the Electoral Appeals Committee
shall be final.”

It was however at
this point, especially with Baribote threatening to go to court over
the decision, that the Lulu-led NFF board opted to set up the
Ibidapo-Obe led Arbitration Panel.

There are however those who feel the decision of the panel does not supersede those of the NPL’s Appeal Committee.

“The electoral
guidelines used in conducting the election was accepted (by the NFF)
and it is clearly stipulated in the guidelines that any dispute should
be referred to the Appeal Committee which sat on the case and upheld
the outcome,” said Ahmed Gara-Gombe, a former boss of the Gombe State
FA.

“But they (the NFF)
set up a panel which in reality was just a consultative body, and this
panel said that the election should be annulled. This cannot be because
the NPL Congress accepted the outcome of the election only for someone
else to annul it,” added Gara-Gombe who traced the origin of the
annulment to Owumi’s rift with the Lulu-led NFF.

Origins of the rift

In September 2007,
the NFF suspended some NPL officials including Obaseki, his deputy,
Shehu Gusau and the secretary Salisu Abubakar after both bodies failed
to agree on who had the right to appoint referees for league matches
ahead of the commencement of the 2007/2008 Premier League season. The
suspensions ranged from two to three years.

Owumi was also
slammed with a three-year suspension after he spoke out against the
NFF’s decision. The suspension was later reduced to six months with
effect from October 2, 2007, and it ended in April 2008. But since that
incident, the relationship between Owumi and Lulu deteriorated.

“That is the reason
for setting up the panel because with his emergence as the chairman of
the NPL Owumi automatically became the second vice-chairman of the NFA
(or vice-president of the NFF),” continued Gara-Gombe.

“Don’t forget that
Lulu was back then still keen on getting re-elected and it wouldn’t
have augured well for him to now have someone who would stand in his
way as his deputy. But I’m not surprised that the people now in the NFA
decided to now uphold the illegal decision of the panel because they
are all birds of a feather.” Going by FIFA’s electoral code and the
articles in the guidelines of both the NFF and NPL, the NFF’s
Arbitration Panel may after all have been illegal.

This is partly
because the NFF had sent observers to monitor the NPL election and no
anomaly was reported. Also, two current serving board members of the
NFF — Enyimba’s chairman Felix Anyansi-Agwu and Referees’ Committee
chairman Suleiman Muazu — were members of the NPL’s Electoral Committee
that ushered in Owumi.

“I am baffled by it
all,” was Owumi’s reaction when NEXT got across to him via telephone,
“But I have said all I wanted to say on the matter. There is nothing
else to say that I had not already said through the statement I made
available to the press,” added Owumi before politely asking to be
excused as he was in a meeting.

The statement Owumi
was referring to was the one he released on December 30 in which he
said, amongst other things, that he remains the NPL boss adding that
the Congress of the NPL had earlier met and confirmed his position on
the Premier League board.

He also stated that he objected to the Arbitration Panel especially as the NPL had “already taken a decision on the matter.”

Regardless of who
is right or wrong, the only logical route to take is for all parties
involved to reach an amicable settlement as the victims at the end of
the day could be the players and the coaches of Premier League sides; a
league that appears to be gradually picking momentum thanks to certain
innovations recently instituted by the new leadership of the NPL.

Whether the league will continue to blossom without the NPL’s head
remains to be seen but according to Obaseki, “It is a step in the wrong
direction and it will do no one any good… I just pray that this
brewing crisis doesn’t spill over because if it spills over, then we
are in for another round of crisis.”

Click to Read More Sports Stories