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‘Bank lending should rise this quarter’

‘Bank lending should rise this quarter’

Bank lending should rise significantly in the second quarter of the financial year once the April 2011 elections, which have prompted a slowdown, are over, according to Bisi Onasanya, group managing director and chief executive officer of First Bank Nigeria.

Mr Onasanya told Oxford Business Group (OBG), a consultancy firm, that financial risk exercises undertaken last year by the Central Bank of Nigeria (CBN) and the April elections had both contributed to a dip in loan growth.

Figures show that lending growth turned a corner to reach 5 percent by the end of last year after plummeting in the wake of the 2008 global financial crisis, which was exacerbated in Nigeria by troubles in the domestic banking sector.

“Lending growth was suppressed last year, partly due to a conservative response from banks following the stress test which the CBN conducted in 2010,” he said. “The elections are slowing loan growth for the first half of 2011, but there will be a major increase after elections in April. I expect loan growth of 10 percent in 2011, which is double the 5 percent figure for 2010.”

Businesses face challenges

Mr Onasanya acknowledged that businesses in Nigeria still faced an uphill struggle to obtain credit from banks, despite CBN Governor Lamido Sanusi’s high-profile campaign to encourage growth by stimulating Small and Medium Enterprise financing. He believes banks are unlikely to increase lending to smaller businesses, which are viewed as a higher risk than big corporations, unless lending rules are relaxed.

“Although SMEs have access to some credit, the risk tolerance limit is too high,” he said. “The banks can’t be blamed since they have to meet provisions when the CBN tests their portfolios. The government and the Central Bank should consider implementing risk sharing to increase the flow of credit to higher risk areas.” With bidding for Nigeria’s unhealthy banks drawing nearer, Mr Onasanya highlighted the importance of ensuring that the selling process was clearly laid out in a framework if legal wrangles and lengthy court cases were to be avoided.

Ten of Nigeria’s banks are up for sale after they failed to meet standards set out in an audit undertaken by the CBN in the wake of the 2008 crisis. The move is set to bring consolidation to the sector, with observers expecting the process to reduce the number of players to 15.

“Due process must be followed involving the boards of directors and shareholders,” he said. “Otherwise, if the distressed banks are sold by the CBN rather than by the actual owners, each acquisition will go into irreconcilable litigation.”

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Delta governor seeks support of indigenes

Delta governor seeks support of indigenes

Delta State governor, Emmanuel Uduaghan yesterday solicited the cooperation of various ethnic groups and opposition politicians in the state, saying he needs their support in his quest to move the state forward. Speaking at the thanksgiving service to mark his victory at the April 26 poll, at the Words of Life Bible Church in Warri, the governor stated that the time has come for all hands to be on deck to ensure even development of the state. He decried the prevalence of hatred and pledged to reach out to the various factions, not only in his Peoples Democratic Party (PDP), but in opposition parties to mend fences with them all. “It is time to build an egalitarian state for the betterment of all citizens of the state,” he said.

Diabolic solution

The governor said his opponents even had to resort to diabolical means in a desperate bid to unseat him at some point, but that these did not work. He appealed to his detractors to have a change of heart as he is not a perfect person, saying he was not the architect of some of the problems of the state. He also advised the people against engaging in actions that could plunge the state into another round of crisis, noting that no meaningful development could be achieved in an atmosphere of rancour and insecurity. He promised to formulate policies that would ensure the empowerment of youth. “This government is about the youth. The biggest challenge is youth employment. Government will formulate more programmes to engage the youth,” he said.

National President, Christian Association of Nigeria (CAN), Ayo Oritsejafor, who ministered at the event, said it was God who made Mr Uduaghan’s victory possible. He however admonished the governor to extend a hand of fellowship to his opponents who lost out in the race. “You should find ways to reach to those who did not win,” he said.

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Saraki, Goje may battle Mark for Senate presidency

Saraki, Goje may battle Mark for Senate presidency

The outgoing Kwara State governor and senator-elect, Bukola Saraki, and his Gombe State counterpart, Danjume Goje, may be heading for a battle with the Senate President, David Mark, as they have reportedly shown interest in occupying the number three position.

Both governors were elected senators on the platform of the Peoples Democratic Party (PDP) at the April 9 parliamentary elections to represent Kwara Central senatorial district and Gombe Central senatorial district respectively. Mr Mark, also of the PDP, was re-elected to represent Benue South senatorial district for the fourth time since the return of democracy in 1999.

It was learnt that both Mr Saraki and Mr Goje are already positioning themselves for the job even though the party’s hierarchy is yet to meet to decide the zoning formula for the next dispensation. The party, reports say, is billed to meet soon to decide on the zoning of the offices of the presiding officers of the Senate and the House of Representatives as well as other principal offices. According to the current formula, the North-Central produced the senate president while the office of the deputy senate president was produced by the South-East. In the House of Representatives, the speaker is produced by the South-West zone while his deputy is from the North-East zone.

However, the results of the recent elections may have made it inevitable for the re-zoning of the offices. Bode Olajumoke and Iyabo Obasanjo-Bello, both from the South-West zone, who had shown interest in the position before the elections, lost their seats to their Labour Party (LP) and Action Congress of Nigeria (ACN) challengers in the April 9 parliamentary polls.

At the height of the PDP zoning controversy last year, President Goodluck Jonathan had said that the National Assembly offices are only zoned by the party after the election of the president and vice president.

“The office of the President and other elective offices like the senate presidency, speaker and National Assembly officers, the PDP has reasonable control as long as we are in the majority. Those offices could be zoned. But before you zone those offices, the president and the vice president would have first emerged,” Mr Jonathan said.

Going by the result of the elections, the ruling party has the majority of the senators-elect with over 60 of them while the Action Congress of Nigeria, which came second, has about 14. The Congress for Progressive Change (CPC) has six senators-elect, All Nigeria Peoples Party 7, the Democratic Peoples Party 1, LP 3 and All Progressives Grand Alliance 1. The PDP also won majority of the seats in the House of Representatives.

All eyes on North-Central

Both Mr Jonathan and his deputy, Namadi Sambo, both of whom were elected on April 16, are from the South-South and North-West zones. This therefore rules out the two zones from presenting candidates for the four presiding offices of the two chambers of the National Assembly – senate president, deputy senate president, speaker and deputy speaker.

Already, members of the party from the north central zone have commenced intense lobbying of the PDP leadership and some hawks in the presidency to retain the zoning of the senate presidency while those from North-East are demanding that it should be shifted to the zone.

The North-Central zone is anchoring its demand on the fact that the PDP controls five of the six states in the zone. The states are Benue, Plateau, Kogi, Niger and Kwara. The party lost Nasarawa to the CPC. Besides, out of the four zones, it produced the largest number of PDP senators, followed closely by the South-East.

Only four out of the six states in the North-East zone are controlled by the PDP. They are Taraba, Bauchi, Adamawa and Gombe. Borno State and Yobe were retained by the ANPP.

The South-West zone is not in contention for the position because the PDP won only one senatorial seat in the zone.

A source said the senate president has been lobbying the lawmakers from his zone to have another shot at the senate presidency just as he is said to have promised them juicy committees. Thus, if it is zoned to the North-Central, Mr Mark may have secured an easy victory. Other senators who were re-elected from the North-Central zone include Smart Adeyemi (Kogi), Zainab Kure (Niger), Dahiru Kuta (Niger) and Sule Ajibola (Kwara) have not shown interest in the position because it is not clear if the PDP will retain the position in the zone.

Mr Adeyemi did not respond to text messages yesterday on the issue. Kola Ologbondiyan, the special adviser to the senate president on media, confirmed yesterday that Mr Mark is interested in retaining his position but did not however say, if Mr Mark has been meeting with senators or if he has pledged anything to them.

However, should Goje and Saraki eventually join the race, they might face a tough battle because they are new senators. But an aide of Mr Saraki, said yesterday, “I am not aware of this plot that you are talking about. The man (Saraki) is even out of town.”

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Jonathan promises workers economic development

Jonathan promises workers economic development

Government has
taken steps towards growing the economy with corresponding increase in
people’s welfare and job creation, Vice President Namadi Sambo said
yesterday during this year’s Workers’ Day celebration at the Eagle
Square, Abuja.

Mr Sambo, who stood
in for President Goodluck Jonathan, said his administration places
emphasis on alleviating the socio-economic problems that have
bedevilled the country, with a view to improving the living standards
of the Nigerian workers.

“Government is
committed to tackling our developmental challenges, by among other
things, laying a solid foundation for sustainable poverty reduction,
employment generation, wealth creation, value re-orientation and steady
power supply,” he said.

Mr Sambo also
reminded the workers of the commitment Mr Jonathan made last year,
which was to ensure that the forthcoming elections would become the
reference point for free, fair and credible elections in Africa, to
ensure the demand for relativity in pay in the civil service, and a new
minimum wage for Nigerian workers.

He said all those
promises had been addressed and that government had also signed into
law the Employee Compensation Act, with provisions for an open and fair
system of guaranteed and adequate compensation for workers.

While noting that
appropriate public policy framework to implement the National Action
Plan on Employment Creation is to be adopted as a strategic national
working document and incorporated into the development plans, he said
that in order to provide jobs, the sum of N50bn had been provided for
job creation in the 2011 budget.

While urging the
labour movement to accept responsibilities along with government in its
on-going efforts toward consolidating democracy in the country, the
vice president said “providence has bestowed on Nigeria all it takes
(human and material resources) to make her the real giant of Africa and
to make enormous contributions, regionally and globally”.

He said this can
only be possible if the nation’s immense potential waiting to be
unleashed, and talents to be tapped are harnessed for employment and
wealth creation.

Praise for Jonathan

President of the
Nigerian Labour Congress, Abdulwaheed Omar, expressed his appreciation
to President Jonathan, saying his participation in the May 2010 Workers
Day and the import of his speech led to some remarkable changes, if not
a leap forward, in the conditions of workers and our electoral process.

He congratulated
Messrs Jonathan and Sambo “for emerging victorious in the last
presidential elections through the clear mandate of a majority of the
Nigerian people”.

He also commended
the commitment, courage and integrity of Independent National Electoral
Commission chairman, Attahiru Jega, whom he said has lived up to the
expectations of many Nigerians and the international community.

He urged government
to tackle the issues of unemployment, cost of electricity tariff, high
cost of governance, corruption and implementation of the new minimum
wage which has been signed into law.

Others who spoke at the occasion were the ministers of Federal
Capital Territory, Bala Mohammed; Labour, Productivity and Interior,
Emeka Wogu, and president general of Trade Union Congress of Nigerian,
Peter Esele.

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Daniel urges workers to support his successor

Daniel urges workers to support his successor

Ogun State
Governor, Gbenga Daniel yesterday called on workers to give adequate
support to his successor, Ibikunle Amosun, who will take over the
mantle of leadership on May 29.

Mr Daniel made the
request while addressing workers at the May Day Celebration held at
Moshood Abiola Stadium, Kuto, Abeokuta. The governor, who was
represented by the Secretary to the State (SSG), Gbemi Onakoya noted
that though the administration of the state would soon change, the
workers must continue to display those qualities that have made the
state workforce the best in the country. “I deeply appreciate the
cooperation and support my administration enjoyed from the generality
of the work force.” He said. “The giant strides we recorded in all
facets of life have been due to the commitment of the workforce.
Without doubt, we have reciprocated their loyalty through workers
friendly policies and programmes that have made our state outstanding
in terms of workers’ welfare.” He listed some of the worker friendly
initiatives of his administration to include: the construction of a new
workers’ estate, in-service training, employment- which has led to
reduction in unemployment and poverty, regular promotion of staff and
the building of an ultra modern state secretariat to enable civil
servants work in a conducive environment.

Learn from the past

Chairman of the
Trade Union Congress (TUC), Seyi Adebanjo said one of the problems of
the out-going government is an excess of political appointees, which he
noted remain the highest in the history of the country.

“In the last
dispensation, there were too many political appointees, the highest
since Independence in 1960,” the labour leader said. “There are Special
Assistant for Billboard and Signage, special assistant for Soft-Sell
Publications, another special assistant for Television, special
assistant for Media, another special assistant for Local Government
Affairs and many others.” Mr Adebanjo said these officials earned
salaries that are higher than directors in the ministries, “whereas
there are well trained personnel in the ministries and agencies who
could handle all these jobs with minimal cost to the state.” He,
however, advised the in-coming administration to learn from the
mistakes of his predecessor.

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Oshiomhole encourages workers to fight oppression

Oshiomhole encourages workers to fight oppression

Edo State governor,
Adams Oshiomhole yesterday called on labour leaders to help promote the
call for better governance in the country. Mr Oshiomhole, who made this
call in his message to Nigerian workers to mark the 2011 May Day
celebration, he said Nigerian workers should stand to be counted in the
struggle for the enthronement of true democracy at all levels in the
country, saying that only leaders who are truly elected by the people
will be accountable to the people, including the workers.

“I salute workers
on the occasion of another May Day today; however workers should not
keep quiet in the face of oppression by political actors,” he said.

“As a matter of
fact, workers’ voices should be loudest in the call for the
enthronement of true democracy, because when political leaders are
truly elected, the interest of workers, the nation’s wealth creators,
will be uppermost in their minds. Conversely, people who rig themselves
into office will only cater for the interests of their political
godfathers and other acolytes.” On the revenue allocation formula, Mr
Oshiomhole, who was a former president of the Nigeria Labour Congress
(NLC) said: “The revenue allocation formula gives so much money to
Abuja and Abuja has far more money than it needs. For every one naira
that accrues to the federation, Abuja collects 52 percent of it, then
the states plus FCT plus the 774 local governments collect the
remaining 46.4 percent.

“Workers should
join the clamour for the change in this anomaly so as not to give some
state governments an excuse on the payment of the new minimum wage.”

Good elections

He also praised
President Goodluck Jonathan for providing the political leadership
needed for one man one vote to prevail in the just-concluded general
elections in the country. Speaking at the 2011 Annual Dinner and Awards
of the Institute of Chartered Accountants of Nigeria (ICAN) in Lagos
last weekend, Mr Oshiomhole also gave kudos to the Nigerian Army for
its neutral role in the elections and not allowing itself to be used as
an appendage of the ruling party. He said the Army demonstrated its
loyalty to the Nigerian nation and not to any individual or political
party. “President Jonathan, unlike a former President who preached
do-or-die politics, provided the enabling political environment, where
the votes of the people counted and results were not determined by
thugs and bullets,” he said. He said this accounted for the loss of the
ruling party in states like Oyo and Ogun. He also gave special
commendation to the Chief of Army Staff, O.A. Ihejirika for providing
the leadership for the Army to defend democracy, saying, after all,
there was a Chief of Army Staff in 2007 when the controversial general
elections were held.

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Oyo in transition frenzy

Oyo in transition frenzy

Following the declaration of Abiola Ajimobi as the Oyo state governor-elect in last week’s governorship election, activities are already moving at fast pace for his May 29 swearing in ceremony.

Already, both the Action Congress of Nigeria (ACN) and the Peoples Democratic Party (PDP), the respective winner and loser of the election, have set up transition committees to work on the process of change of baton between the incumbent governor, Adebayo Alao-Akala, and the governor-elect.

Lam Adesina, a former governor of the state and leader of the ACN, at a press briefing on Friday, announced the inauguration of a 15-member committee of the ACN, while the governor appointed a 21-man transition team to work with the in-coming administration so as to ensure a hitch free change of baton’.

Dominated by permanent secretaries in the state civil service, the government team is headed by one Tajudeen Aremu and is expected to furnish the in-coming government’s team with all necessary information without any hindrance.

Meanwhile, the out-going governor had told the state workers that his earlier promise to pay the new minimum wage of N18,000 will be implemented by the in-coming governor.

Mr. Alao-Akala, in his message to the workers on the celebration of Workers’ day yesterday, urged them to be dedicated, hardworking and co-operative with the in-coming government.

He also implored the governor-elect to pay attention to the welfare of the workers to be able to get the best in them.

Mr. Ajimobi, in a separate message to government workers, pledged to give all it takes to ensure meaningful life for government employees and the state’s retirees.

No deprivation

In a release from the director of publicity of his campaign organisation, Yanju Adegbite, the governor-elect said “We are all happy for the change in Oyo State and I congratulate our workers too for witnessing the workers’ day celebration. I assure them all that they will not regret voting for me and my party, the Action Congress of Nigeria, in the last election”.

And to retired workers, he said never again would “the Senior Citizens of our state,’ face the deprivation of their entitlements at a time when they should be savouring the fruits of their years in service”.

The camp of governor-elect also raised alarm on the alleged attempt by some politicians to make last minute withdrawal from government’s treasury as the state prepares to get a new helmsman on May 29.

Mr. Adegbite, who made the allegation in Ibadan at the weekend, warned banks to be watchful as, according to him, the plan was to precipitate cash drought for the incoming government.

“We are by this statement issuing a form of caveat emptor to all banks and other key sectors of the Oyo State economy to be on their guard as attempts are being made to siphon the wealth of the state by agents of the exiting government”.

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PDP accuses opposition of smear campaign

PDP accuses opposition of smear campaign

The office of the
acting national chairman of the Peoples Democratic Party (PDP) said
yesterday that it has uncovered a plot by persons believed to be agents
of the opposition to use the press and social media networks to concoct
and disseminate spurious stories about the party’s current leadership.

The aim, it said is
to embarrass and tarnish the good public image of top leaders of the
ruling party. Emeka Nwankpa, media aide to the acting chairman of the
PDP, Haliru Mohammed, yesterday in Abuja said intelligence reports
available to the party boss, indicate that some opposition groups have
hired and commissioned certain newspapers, news magazines, social media
networks and fifth columnists to concoct and disseminate false claims
and allegations against leaders of the party to cause distrust,
discord, suspicion and disaffection in order to set them against one
another thereby creating internal discontent and disharmony.

“The office of the
acting national chairman of the party has viewed the situation and has
therefore alerted leaders, loyalists and supporters of the party to be
wary of false publications, alarming leaflets, text messages, rumours
and comments attributed to certain persons in the top hierarchy of the
party, as these are mere ploys to create division in the party,” the
statement said.

It also said that
with the conclusion of the general elections in the country, some
persons have shifted their conspiracy to the ruling party with the aim
of infiltrating it and sowing discord and inducing crisis in its fold.

Stating that the
party is handling the situation, the statement stressed that no amount
of smear campaign or conspiracy will stop Nigerians from keeping faith
with the party.

“For the avoidance
of doubt, no amount of smear campaigns, conspiracy or political
shenanigans will stop Nigerians from keeping faith with our party as
the outcomes of the recent elections have shown,” it said.

The office of the
national chairman also warned media managers not to allow themselves to
be used to cause disunity and disintegration of the country.

“The office
therefore states that it wishes to use this medium to caution owners
and managers of newspapers, news magazines and social media networks
against being used as tools by those it described as agents of chaos,
disunity and disintegration of the country masquerading as politicians.

“To the masterminds
of this wicked plot, the office wishes to admonish and advise them to
use their talents to build the Nigerian nation in response to the
repeated calls by the president-elect, President Goodluck Ebele
Jonathan that all Nigerians should endeavour to put behind them the
sentiments on the outcomes of the recent elections and come together to
build a nation that not only fulfils the dream of our founding fathers
but a nation that will be cherished by generations yet unborn.”

New opposition group

Meanwhile, some
politicians and opposition leaders in the country have commenced
consultations on the need to unify their ranks in the aftermath of the
botched electoral talks that polarized their movement, jeopardizing
their chances of winning the 2011 presidential elections.

The latest
intervention, opposition leaders have said, became necessary in the
light of what it termed unproductive cleavages arising from discord
over the 2011 alliance proposals, as against the urgent need to give
positive leadership to the mass frustration, which followed the 2011
elections. Olawale Okunniyi, spokesperson for the Progressive Summit
Group, disclosed this after holding preliminary consultation on the way
forward with Tunji Braithwaite, the leader of the National Intervention
Group, (NIG) at his Victoria Island residence in Lagos.

Mr Okunniyi, who
was the governorship candidate of the Congress for Progressive Change
in Ogun State in the April 26 elections, regretted the inability of the
progressives to strike an accord in the 2011 elections.

According to him,
the opposition would now have to learn their lessons the hard way but
was quick to add that with the growing frustration, impoverishment and
political impunity pervading the country, progressive forces will be
conditioned to come together shortly and reclaim their lost opportunity.

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Opposition alleges plot to declare Ohakim winner

Opposition alleges plot to declare Ohakim winner

The Conference of Nigerian Political Parties (CNPP) at the weekend said the decision of the Independent National Electoral Commission (INEC) to not declare the gubernatorial candidate of the All Progressive Grand Alliance (APGA), Rochas Okorocha as the winner of the election in Imo State, is part of a plot to hand over victory to Mr Okorocha’s Peoples Democratic Party counterpart and governor of the state, Ikedi Ohakim.

The group said Nigerians will hold the INEC chairman, Attahiru Jega responsible if any problem erupts in the state.

According to the results declared after the election last Tuesday, Mr Okorocha polled the highest number of votes and secured 25 percent in 18 out of the 27 local government areas in the state. However, INEC declared the exercise inconclusive and ordered fresh polls in three local government areas, namely the Ngor Okpala, Ohaji Egbema, Oguta, Mbaitoli and Orji wards.

The CNPP national publicity secretary, Osita Okechukwu said in Abuja that the non-declaration of Okorocha as winner is a tacit award of the governorship to Mr Ohakim.

The coalition of opposition parties argued that if it was the governor that polled the highest number of votes in the 22 councils where results were declared, the commission would have instantly announced him the winner of the election.

It said that INEC should have cancelled the controversial results of the affected areas and declared the rest of the results.

“We’re still as a loss on how INEC descended into the arena, instead of cancelling, as it did in Bauchi State, the controversial results of the affected areas and declared results, to accommodate the 30 days stipulated in the 2010 Electoral Act, INEC invented supplementary election, a stranger to the law,” the CNPP said.

“We have searched for the much-flaunted integrity of the new INEC leadership and their returning officers and by end of the day, it is becoming illusory as evidenced by the Imo State governorship confusion,” Mr Okechukwu said.

“We had thought that Professor Jega and co are in a better position to appreciate the danger of one-party state in liberal democracy and hence advance the frontiers of multi-party democracy. This is not the case, as they seem to have played into the hands of pro-one party state.”

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University mourns alumnus corps member killed in post-election crisis

University mourns alumnus corps member killed in post-election crisis

The authorities of
the Adekunle Ajasin University, Akungba-Akoko, at the weekend mourned
the death of one of its own, Kehinde Jehleel Adeniji, who was killed
during the violence that trailed the outcome of the presidential
election in the north.

Mr Adeniji, aged
26, an engineering graduate of the university, was one of the corps
members serving in Bauchi State murdered by hoodlums who staged a
violent protest after the April 16 poll. His body was returned to the
state at the weekend along with those of other victims of the riots.

In a statement
issued by its principal assistant registrar, Sola Imoru, the
institution said “the unwarranted and mindless killing of the young man
is unfortunate and condemnable.”

Mr Imoru added that
“the killing of the youth, while in the service of his fatherland, has
called into question the philosophy, intent and continued relevance of
the National Youth Service Corps programme.

“It is a crude
irony that a nation that is supposed to breed young leaders with
budding potential like Kehinde will watch hoodlums water its democracy
with their blood with impunity,” he said. “The Nigerian university
community is sick and tired of breeding talents that will end up as
targets of blood-thirsty hoodlums in a section of the country under
whatever guise. Countries across the world protect, educate, provide
for and consciously build their successor generation. We cannot
continue to kill our own and expect to grow and compete in the 21st
century world.”

Punish the killers

The leadership of
the university, while condemning the killing, urged security operatives
to rise up to the occasion and bring those behind the callous act to
book to end the impunity behind such actions.

The institution also prayed God to grant the family of the deceased the fortitude to bear the loss.

“The only service the nation can do to the memories of Kehinde and
the other fallen corps members is to find their killers and their
masterminds and bring them to justice as a way of stemming the tide of
mindless killings in the country,” Mr Imoru said.

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