Archive for nigeriang

Banks don’t need excessive loan provisioning

Banks don’t need excessive loan provisioning

Banks
have been asked to stop excessive provisioning for non performing loans
in their books as the Asset Management Corporation will buy the rescued
banks loans and also the margin loans of other banks, say some finance
experts.

“With
the execution of this transaction, (a three year zero coupon
consideration bonds) non performing loans concerns across the banking
sector have got a major relief. This clearly lays to rest the days of
provisioning surprises, as the full participation of the banks in this
process cements the days of troubled past,” says Adesoji Solanke, an
equity research analyst at Renaissance Group, an investment banking
firm.

Mr. Solanke added that the sector is expected to be more focused this year, with its non performing loans taken care of.

“We
welcome revamped lending practices and a more defined business focus in
the sector, and see moderate, sustainable, and higher quality earnings
dotting the sky line in the next few years,” he added.

The
non performing loans acquired from the cleared banks (margin loans)
stands at N167 billion, which represents 8.6 per cent of the total non
performing loans acquired today, while the balance 91.4 per cent or
N1.78 trillion came from the troubled banks.

Banks comparative stock performance

Despite
the challenges faced by the banks and the burden of non performing
loans they had to bear, experts say the sector performed relatively
well at the stock market, except for a few.

“The
Nigeria Stock Exchange All Share Index (NSE ALSI) closed 18.93 per cent
up, effectively bucking a two-year bleeding trend. Nigerian banks
played a huge part in this return to the greens, with 76 per cent of
listed banks posting positive (Year to date) YTD returns compared to
just 13 per cent in 2009,” a report from Renaissance Capital stated.

“Sterling
Bank was the sector’s jewel, posting an 88 per cent year to date climb,
coming on the back of a 49 per cent dip in 2009. Skye Bank followed
with a distant 60 per cent (YTD) rise. On the flip side, Ecobank
Nigeria was the poster boy, as it emerged the worst performing stock
amongst the cleared banks for the second consecutive year – 62 per cent
in 2009 and 66 per cent in 2010,” it further said.

According
to the report, First Bank and UBA, alongside Union Bank and Afribank,
all recorded a second year of year to date losses. Oceanic, Unity, and
Wema banks also did well, with average YTD gains of 43 per cent and
only GTBank, Access Bank, and FCMB posted their second consecutive year
of positive YTD performance.

Ecobank
declined to speak on why the bank emerged the worst performing stock
amongst the cleared banks for the second consecutive year, as the
corporate affairs official said he was not in the position to speak on
investment performance matters on behalf of the bank and that the
person authorised to speak on the issue was not available.

A source at the bank, however, said a number of issues may have caused the poor performance of the stock.

“You
know that dividends are among things that actually push stock
performance in the market. Investors may say that dividends have not
been regular.

“Besides,
once you have a parent company, there is the tendency that investors
would prefer investing in the parent company, ETI, than in Ecobank
itself,” the source said.

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BRAND MATTERS: Brand technicians and engineers

BRAND MATTERS: Brand technicians and engineers

A major challenge
that the marketing communication industry faces is that of
professionalism. Advertising, Public Relations, Experiential Marketing,
and others are integral components of this industry. It is a thorny
issue that the industry should deal with.

The industry is
threatened with the existence of several so called ‘professionals’ with
little or nothing to offer to enhance growth in the industry. It has
reached the stage whereby anyone with good working knowledge of Corel
Draw is automatically an authority in branding. The case is even more
complicated when they attend any workshop or seminar on branding, as
they immediately become ‘brand consultants’.

Though the
regulatory bodies in the industry have woken up to the reality of the
enormous threat such people pose, this is not enough as drastic
measures should be taken to ensure strict adherence to the rules.

It is disheartening
to note that the industry is not yet regulated like other professional
bodies such as the Institute of Chartered Accountants of Nigeria
(ICAN). There is no way an accountant will practise without being
certified by ICAN or any other professional accounting body. The same
cannot be said of the marketing communications industry. It is now an
all comers affair.

For instance,
advertising faces serious challenges the most. This is due to the
influx of brand mechanics and very soon, we shall have brand
carpenters. The ‘brand experts’ are determined more than before to give
advertising agencies a good fight. To the best of their knowledge and
ability, they have what it takes to make a brand succeed than
advertising agencies.

Separating the wheat from the chaff

There is the urgent
need to separate the wheat from the chaff. I know some advertising
professionals who have honed their skills by studying more about
branding. A good reference point here is Joko Okupe, a renowned
professional who spent years in South Africa gaining more in-depth
knowledge about branding.

My grouse here is
with people who have no pedigree and suddenly became brand experts
overnight. These are the same set of people taking undue advantage of
the industry.

I believe in the
innate potentials of Lolu Akinwunmi as the chairman of APCON. Mr.
Akinwunmi’s appointment at a time like this should bring sanity to the
profession.

For several years,
owners of advertising agencies have only been after their pecuniary
interests. This is indeed a time that the leaders should look back and
take a closer look at the kind of legacy they are bequeathing to the
industry. It has become imperative to harness strengths and potentials
and chart a new way forward for the industry. The leaders should eat
the humble pie and learn from what Kenny Badmus, the brain behind
Orange Academy, has done.

This is a young man
who put his talents into good use by developing a new generation of
creative professionals for the industry. Orange Academy stands tall
above all the established agencies, as none had such vision to uplift
the industry and leave a lasting legacy. The Academy has become a
breeding ground for a distinct set of young minds who in the nearest
future will take the industry by storm.

Some advertising
agencies are globally affiliated but beyond the technical benefits of
such affiliations, what have been the tangible contributions of such
affiliated agencies to the development of the profession in Nigeria? We
have such respected names as FCB, Ogilvy, Leo Burnette, etc. But what
are our own agencies doing to retain their names, decades after
establishments?

A senior colleague
met me in a banking hall the other day and was shocked that leading
agencies are the major defaulters in paying professional dues to AAAN.
Is this not a cause for concern? Why would all sorts of people not
spring up and lay claim to the industry when the leaders are not living
up to desired expectations?

This is indeed a
clarion call to all and sundry to do the right thing at the right time.
It is only then that the menace of unbaked and unripe people will stop
masquerading as professionals.

New Year wishes

I sincerely
appreciate all readers of this column for their support, critique, and
contributions in the last one year. I wish all the best this new year
and may all your dreams come true.


Ayopo, a
Communication Strategist and Public Relations Specialist is the CEO of
Shortlist Limited email-shortlistedprspecialists@gmail.com

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IMF considers greater roles in capital flows

IMF considers greater roles in capital flows

The International
Monetary Fund (IMF) is considering playing more important role in
monitoring cross-border capital flow. The Fund’s executive board at a
meeting held last December 17, noted the growing dominance of capital
flows in international transactions for advanced economies, and
increasingly for emerging economies and the need for closer monitoring.

“Volatile capital
flows played a key role in the recent crisis, both in increasing
vulnerabilities and in transmitting shocks across borders. Considering
the Fund’s mandate to oversee international monetary stability,
directors agreed with the need to strengthen the Fund’s role regarding
international capital flows,” it said on its website.

The Bretton Woods
institution said further that macroeconomic, financial, and capital
account policies designed to address domestic concerns in one country
can have significant effects on other countries by generating or
curtailing capital flows, or acting to divert them to third countries.

“The Fund has an
important role in drawing attention to these potential spillovers, and
the possible implications for the international monetary system as a
whole.” Critical elements of this work include gaining a better
understanding of the key drivers of capital flows and of developments
in global liquidity, and the relationship between the latter, domestic
policies, and global financial stability.

Unhindered capital flows

The move by the IMF
raises questions about how unhindered capital flows and the absence of
proper regulation caused disruption in some emerging economies that
otherwise should have been shielded from the global financial crisis in
2008.

Razia Khan,
Regional Head of Research, Africa, at Standard Chartered Bank, London,
said the global crisis was a failure of regulation.

“Need for improved
financial-sector regulation is seen everywhere. Policy makers have
generally backed off, fearing pro-cyclical consequences of tighter
regulation.” Ms. Khan said unprecedented liquidity creation on the
global scale has led to record capital inflows into emerging markets.
“This led to the ‘discovery’ of Africa as the so-called final credit
frontier,” Ms. Khan said.

She added that the
development of African frontier markets will depend on a favourable
macroeconomic backdrop as well as market liquidity.

The IMF observed
that capital flows have conferred substantial benefits by facilitating
efficient resource allocation across countries, but prolonged episodes
of high volatility have also presented serious policy challenges.

They called for
further work to advance in bilateral and multilateral surveillance and
policy advice for member countries, based on extensive analytical work
and taking into account country-specific circumstances and relevant
experiences.

The IMF would be
collaborating with other institutions, such as the Bank for
International Settlements, the Financial Stability Board, and national
authorities, in meeting this goal.

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Folarin, three others apply for bail

Folarin, three others apply for bail

Teslim Folarin,
Senate majority leader, and three other suspects remanded in prison
over the alleged killing of Lateef Salako (aka Eleweomo), factional
leader of the National Union of Road Transport Worker (NURTW), applied
for bail at an Oyo state High Court on Thursday.

An Oyo state chief
magistrate, Shakirat Badrudeen, ordered the four men to be remanded in
prison custody until January 14 when their case would be reopened for
mention.

They were arraigned
on Tuesday on a two-count charge of felony (conspiracy to murder) and
murder of Mr Salako who was gruesomely killed after the local
government congress of the Peoples Democratic Party (PDP) at Ona Ara,
Oyo state, last Thursday.

Though the
magistrate agreed with the argument of Oluwarotimi Akeredolu, former
president of the Nigerian Bar Association who led the team of lawyers
defending Mr Folarin and others, that the court lacks the jurisdiction
to hear criminal matters, Ms Badrudeen, still adjourned the case till
January 14, for mention.

The other accused persons are Ramoni Jayeola Bankole, Olaide Raji and Raimi Ismaila.

Filing the bail
application on Thursday, Mr Akeredolu, supported the documents with a
44-page affidavit. In the application tagged M/8/2011, the applicants
joined the state attorney general and the state commissioner of police.

For the whole of
Wednesday, Mr Akeredolu and his team had brain-stormed on the
modalities to hasten the bail of the senate leader, who had been in
custody since Monday when he honoured the police invitation to come and
write his statement on the death of Mr Salako.

The Agodi prison,
where the accused were detained, was still bustling yesterday with Mr
Folarin’s sympathizers. It appeared as though the senate leader had the
support of prominent Ibadan political and business leaders. Prisons
officials faced a heavy volume of visitors calling at the prison
throughout the day to see the politician.

Baba Adisa Bolanta,
Oyo State commissioner of police, has, however hinted that more people
will be declared wanted by the police today (Friday) over Mr Salako’s
death.

Mr Bolanta, who
disclosed this to journalists in Ibadan on Thursday, said the police
are yet to close the case on the murder as many other suspects are yet
to be apprehended. He opined that the command should be commended for
its efforts in unraveling the mystery behind the killing of the
unionist in the past week

Police deny bias charges

In another
development, Lekan Balogun, leader of the opposition against the state
governor, Adebayo Alao-Akala, announced that he planned to hold a rally
on January 15 to push for the deployment of the commissioner of the
police from Oyo State. Mr Balogun accused Mr Bolanta of corruption and
bias in the murder case of Mr Salako. He said he would ensure that the
police commissioner was transferred from the state to allow for peace.
Denying the allegation of bias against Mr Folarin, the police boss said
the force established a case against him before arraigning him and
three others last Tuesday.

Saying he had given
the Ibadan high chief respect as a senior citizen and a former
lawmaker, he said, “We will not delay in dealing with him [Mr Balogun]
according to the law if he tries to incite the public against the
police.”

Mr Bolanta said
that none of the cases of crime reported since he took over his post in
Ibadan had gone uninvestigated, and that everything he did as police
chief was done with the consciousness that he would give account one
day “where the whole SANs in the world would not be able to defend me.”

He said
investigations conducted so far have shown that the Senate leader and
other accused persons were present at the scene of the incident. He
said the four police officers attached to the senate leader who were
also arrested and detained shortly after the killing of Mr Salako, are
assisting the police in their investigation of the matter.

He also said that Mukaila Lamidi (aka Auxiliary), Mr Salako’s
deputy, was interrogated at the Iyaganku Police station yesterday over
his alleged involvement in the vandalism of a filling station belonging
to Lateef Akinsola Oloruntoki (aka Tokyo), the state chairman of the
NURTW.

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Nwodo assures Nigerians over April polls

Nwodo assures Nigerians over April polls

The national
chairman of the ruling People’s Democratic Party (PDP), Okwesilieze
Nwodo, has declared that the party and its government are determined
and committed to ensuring that the will of Nigerians prevail in the
choice of their leaders during the forthcoming general elections in
April.

Mr Nwodo spoke
while receiving the South African minister of international relations
and cooperation, Maite Nkoanie Mashabane, who paid him a courtesy call
at his private residence in Abuja.

He said that the
on-going electoral process within the ruling PDP is a test for the
party and the country in the democratic journey, adding that the
country’s commitment to democracy is sacrosanct notwithstanding the
teething problems.

Mr Nwodo noted that Nigeria and South Africa have a lot in common as Africa’s leading nations and regional powers.

Earlier, Ms
Mashabanie told Mr Nwodo that she came to deliver a message from South
Africa’s President Jacob Zuma to President Goodluck Jonathan and was
directed to see the national chairman of the ruling party. She invited
Mr Nwodo to the African National Congress (ANC) centenary celebration
in January next year.

Ms Mashabanie also stated that South Africa is disposed to solving
Cote d’Ivoire’s political logjam using ECOWAS rather than the use of
force.

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Ribadu battles Bafarawa for ACN ticket

Ribadu battles Bafarawa for ACN ticket

The former chairman of the Economic and Financial Crimes Commission (EFCC) Nuhu Ribadu, and former governor of Sokoto State, Attahiru Bafarawa, will be the pair to slug it out for the presidential ticket of the Action Congress of Nigeria, barring any delayed maneuverings.

While Mr. Ribadu will today pick up his nomination form at the party secretariat in Wuse Zone 6, Abuja, Mr. Bafarawa picked up his form yesterday. The party’s deadline for the purchase of the presidential nomination form is Sunday, April 9. The form is sold by the party for N5 million.

NEXT has learnt that the certainty of Messrs Bafarawa and Ribadu being the final contestants to vie for the ticket is due to the withdrawal of the former national secretary of the party, Usman Bugaje, and Saidu Malami from the presidential race.

“Dr Bugaje has pulled out from the race. He has written us (ACN secretariat) that he is no longer interested in contesting the presidential election,” an official of the party told NEXT.

When contacted, Mr Bugaje declined giving any information about his purported letter. “I will let you know what my decision is at the party primary,” Mr Bugaje told NEXT.

Mr Malami is also said to have withdrawn from the race after several meetings between himself and Mr Ribadu. Both men attended the interactive session organized by the Abuja chapter of the CAN. Both Mr. Malami and Mr. Bugaje are said to have decided to support Mr Ribadu. The party’s presidential primary has been fixed for January 14 in Abuja.

Chairman’s warning

Ahead of the primaries, ACN’s national chairman, Bisi Akande, has urged all members to ensure the best conduct and maintain the highest standards all through the primaries.

Mr Akande in a statement issued on Thursday, charged the party executives, party officials and aspirants to keep to the high standards and behaviour of the party.”

“Our party is a disciplined party and a party that is determined to install democracy and good governance,” he said. ” It will, therefore, not tolerate any corrupt practices or any behaviour that will undermine the integrity of our party and process.”

Mr Akande further warned that a monitoring system is in place to catch any illegal exchange of funds stating that “for the avoidance of doubt, a surveillance system has been put in place to monitor and detect any demands or exchange of funds other than that published in the guidelines. We are determined to ensure democracy and build a strong foundation for good governance,” he stated.

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Bankole, deputy governor win PDP House of Reps tickets

Bankole, deputy governor win PDP House of Reps tickets

In one of the most keenly watched elections during the PDP primaries in Ogun State, the state deputy governor, Salimot Badru, yesterday defeated her main challenger to emerge candidate and flagbearer of the PDP for the House of Representatives election. Mrs Badru defeated Emmanuel Hosu, a former chairman of Ipokia Local Government at the congress which attracted delegates from Ipokia and Yewa local government areas which took place at the Gateway International Stadium, Ilaro.

The speaker of the House of Representatives, Dimeji Bankole, emerged untouched following the disqualification of his opponents by the PDP verification team for the Abeokuta district.

In the Ilaro election, Mrs Badru polled 262 out of 840 votes, while Mr Hosu scored 212. Six of the total votes cast were foiled. The congress was conducted under the watchful eyes of security operatives, officials of the Independent National Electoral Commission {INEC}, journalists and party officials.

The policemen, who mounted security round the premises, kept suspected hoodlums at bay.

The two contestants watched the exercise from a distance, as delegates filed out one by one to determine their fates through voting which lasted for about three hours. The results were announced publicly after.

The victory of Mrs Badru was followed by a wild celebration by her supporters. The deputy governor, who defeated her opponent with 50 votes, said her victory was for all members of the party.

Arrested armed suspects

Meanwhile, a son of a former local government chairman identified as Akinloye Bankole, was yesterday arrested by police over his alleged attempt to smuggle arms into the venue of the congress. The suspect was apprehended along with a few of his colleagues during a police check on the Mazda he was driving towards the Gateway International Stadium, Ilaro venue of the congress.

The police, suspecting foul play, insisted on searching the car and discovered guns and ammunition which the suspect could not successfully explain. He was subsequently taken to the police station for further interrogation, along with with the car and its contents. As news of his arrest filtered into the premises of the congress, his father, said to be a delegate, reportedly became crestfallen. He refused to speak about the incident. Police sources said the suspect will be transferred to the police headquarters at Eleweran, Abeokuta.

A number of locally-made amulets and other charms were also seized from some delegates at the congress by security operatives.

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Government inaugurates committee on ICT conference

Government inaugurates committee on ICT conference

The federal
government on Thursday inaugurated an 18-member technical advisory
committee that will articulate and present Nigeria’s position at all
international Information and Communications Technology fora.
Inaugurating the committee, Stephen Willoughby, permanent secretary of
the ministry of information and communications, stated that Nigeria has
not always made adequate preparations before attending international
events and has been unable to reap maximally the gains of such
meetings.

“At the moment our
preparations have not been at par or been not the best,” he said.” We
go into conferences blank…sometimes we defend common interests of
others or even interests that are partisan to others which
inadvertently we do not know. When we try to defend our interests, we
do not articulate and defend them robustly. We must have strong in
positions which we must present and defend at all regional and national
fora.”

Mr Willoughby said
the ministry places great importance in the committee with the hope
that it will assist in advancing the cause and mandate of the ministry
at international fora on telecommunication and ICT.

Coordinating strategy

The committee, he
said, is a result of the recommendations made by the Nigerian
delegation to the just-concluded International Telecommunication
Union’s Plenipotentiary Conference that took place in Guadalajara,
Mexico last year.

“It was discovered
at the conference that Nigeria had no major position of its own for
presentation to the conference. Instead, the country went to the
conference with only the African Common Position at hand to defend
while some African countries that are not of Nigeria standard, despite
the African Common position, went to the conference with their own
in-house prepared positions, which they presented to the conference and
defended those positions with passion,” he said. “A time has now come
that we as a country need to develop our in-house positions, which we
must present and defend at all regional and international fora. We must
ensure that we prepare adequately within the country before going out
to participate in any of the fora. We have to be seen to be taking our
leadership role now in all affairs of the African continent.”

The committee’s
term of reference included coordinating Nigeria’s strategy and input to
meetings on telecommunications and ICT with a view to optimizing the
benefits of such for a to Nigeria.

They will also consider issues that will arise at such meetings and
advise on Nigeria’s preparations, positions, plans and effective
participation in a manner that influences the outcomes of such fora.

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Privatisation bureau in a fix over NITEL bid process

Privatisation bureau in a fix over NITEL bid process

The Bureau for
Public Enterprises (BPE) is in a fix on the next line of action in
selling the Nigerian Telecommunications Limited (NITEL), and its mobile
subsidiary, Mtel, following the recent failure of the preferred bidder
to meet its payment deadline.

New Generation
Consortium, the bid winner announced last February, was, more than
twice, given an extension by the National Council on Privatisation
(NCP) till December 23, 2010 to pay the initial bid security of $750
million (about N112.5 billion) for the offer.

But, surprisingly,
at the expiration of the deadline, Usman Gumi, New Generation chief
operating officer, said that the consortium was only able to send a
letter from its financiers to the BPE as proof of its financial
capacity to make the initial payment, and also the entire bid sum of
$2.5 billion, an arrangement that contravened the bid guidelines.

The guidelines
stipulate that the preferred bidder should make the payment by
electronic transfer or dollar-denominated bank draft to the account
designated by the BPE on or before the expiration of the deadline.

It was learnt
yesterday in Abuja that the privatisation agency has since commenced
consultations on the next line of action to bring to conclusion the
long transaction, which has already failed a record four times since
2001.

“What I have to
tell you is that it has become clear now that that the company (New
Generation Consortium) is either not serious, or that they do not have
the money to pay for NITEL,” a senior BPE official said in an interview.

“After the Federal
Government bent over backwards to extend the payment deadline more than
twice, there is nowhere a serious bidder would not reciprocate by
paying and closing the transaction. When we (BPE) resume from holidays
on Monday next week, the first thing management will do is to seek the
approval of the Presidency, through the NCP chairman, to consider other
options of bringing the bid process to a close,” he concluded.

Sale options

Two options,
proposed in March last year by the Adetokunbo Kayode-led ad-hoc
committee to review the sale, have always been open for consideration
following the initial confusion that trailed the bid, which culminated
in the sack of the then director general of the BPE, Christopher
Anyanwu.

These included a
recommendation for NCP to order the BPE to invite the reserve bidder to
come forward and take up the bid, or for the privatisation agency to
cancel the entire process and start afresh by calling for new
expression of interests (EoIs) from new investors.

Indications are
that the BPE might be willing to adopt the second option of annulling
the entire bid for a fresh start, as most of the groups that
participated in the February 2010 bid considered the New Generation
Consortium’s offer of $2.5 billion too over ambitious, and may not be
willing to have anything to do with it.

Calls to BPE
director general, Bolande Onagoruwa, for a confirmation did not go
through as her special assistant, Azeez Aderemi, confirmed she was yet
to return to the country from her foreign trip.

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PDP senators in last-minute campaign for delegate votes

PDP senators in last-minute campaign for delegate votes

Ahead of the
National Assembly congresses of the People’s Democratic Party that is
rescheduled to hold today, some incumbent senators are deploying
desperate last-minute tactics to lobby both delegates and the public.
The senators, who have been lobbying delegates after a legislative
attempt to give them the right of first refusal failed at the national
assembly, have embarked on desperate means of sending across their
messages.

As a last-minute
measure to convince delegates, some of the lawmakers have employed
unusual new media to reach them. While some have taken their last
campaign messages to popular social media networks like Facebook and
Twitter, some are sending unsolicited bulk Short Message Services (SMS)
to random telephone numbers hoping to catch a delegate.

Like most of his
colleagues facing serious re-election challenges, Nimi Bariye Amange, a
serving Bayelsa state senator, in an unsolicited bulk SMS sent to
random telephone numbers, directly solicited for delegate votes. Most
messages were written in the new but informal social media language.

“Dear delegates to
d Bayelsa East Senatorial primary elections,” Mr. Amange wrote. “Ur
vote to Amange will enhance ur brother/sister, daughter/son’s,
educational pursuit. In 3yrs he has paid WAEC/JAMB/NECO for 800
candidates and he will do more.”

Like Mr. Amange,
most senators and other senatorial aspirants base their public campaign
on either the capital projects they executed or attracted to their
communities and promising to do more rather than the effects or
efficiency of the laws they sponsored or supported or intend to sponsor
or support if (re)-elected.

Umoh Edet, a
political analyst with a special interest in the national assembly,
says the elements of these campaign messages are wrong and have the
potentials of misleading ignorant constituents on the core function of
lawmakers. He argues that lawmakers have no business initiating,
executing or promising capital projects except on philanthropic grounds.

“The core function
of the lawmaker is to make laws, not building roads or bore holes,” he
said. “That is the work of the executive arm of government. The
lawmakers are supposed to change the lives of their constituents
through the laws they make.”

The senators,
alongside their House of Representatives colleagues, late last year,
dropped the right of first refusal idea after they were caught in a web
criticism for attempting to insert in the electoral act, a clause which
would have made it mandatory for political parties to put the ambitions
of a serving lawmaker before rookies.

Subsequently, most of the lawmakers are facing strong opposition
from fellow party members who either feel they did not perform very
well as lawmakers or perhaps ogling the perceived fat pay the lawmakers
earn.

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