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POLITICAL MANN: Obamacare faces legal challenges

U.S. President
Barack Obama’s most ambitious undertaking is facing two kinds of
trouble, with both the Congress and now the courts threatening his
overhaul of the American health system.

This week a judge
in Virginia state ruled that the Obama plan, which would force
Americans to buy health insurance, is unconstitutional. Other judges
have upheld its constitutionality, so the issue probably won’t be
settled until it reaches the Supreme Court.

That could take up to two years, but the president’s plan will face a different attack almost immediately.

Congressional elections last month changed the balance of power in Washington.

The Republicans who officially take office in January say they’ll try to repeal the plan.

They could also
simply vote to withhold funding. Under U.S. law, if the Congress won’t
pay for the plan, the president can’t implement it.

Right now, only
early elements of the enormous reform have begun to take effect. There
are years left before it’s scheduled to be fully implemented.

Between the courts and the Congress, that leaves a lot of time for things to go wrong for the president.

Minister wants Nigeria-Serbia chamber of commerce

Minister wants Nigeria-Serbia chamber of commerce

To strengthen cooperation between Nigeria and Serbia, there is a
need for the establishment of the Nigeria-Serbia chamber of commerce, the
minister of commerce and industry, Jubril Martins-Kuye, has said.

Mr Martins-Kuye, who met with the Serbian Ambassador to Nigeria,
Rifat Rondic noted that Nigeria was desirous of strengthening trade and
investment relation with the Republic of Serbia and that the ministry was
willing to give everything to facilitate Serbian investment in the economy of
Nigeria.

“The proposed Nigeria – Serbia chamber of Commerce should be
proactive and be able to liaise with all departments of government in order to
ensure that Serbians desire to invest in Nigeria becomes a reality,” he said.
“My Ministry will support Serbian businessmen who want to invest in Nigeria and
will cooperate with Chamber of commerce of both countries.”

The Minister reiterated that the agreement on trade and
investment promotions, as well as ‘Avoidance of Double Taxation Agreement’ must
be signed and put into practice. “Since we have such plan, what is important is
to give nod to it and take it from the level of near agreement signed on paper
to something we can actually put on ground and precise,” he said.

Working agreement

Francis Akiniyi of the National Association of Chamber of
Commerce and Industry, Mines and Agriculture (NACCIMA) said Nigeria has a lot
to gain from Serbia in terms of investment in agriculture, construction,
Textile, Power generation and Technology. He said that they were at the final
stage of registering the Nigeria- Serbia chamber of commerce with relevant
government departments.

Mr Rondic pointed out that Nigeria is a leading country in
Africa and there was need for Serbia and its people to cooperate with the
country.

He also said that the Nigeria Investment Promotion Council
(NIPC) had concluded a memorandum with the Serbia Chamber of commerce and
stressed the need for both countries to finalise the bilateral agreement which
had been concluded in January 2002. The ambassador urged the minister to
facilitate the ratification of the agreement by the National Assembly.

Akala gets condition for second term

Akala gets condition for second term

One of the founding members of the Peoples Democratic Party
(PDP) in Oyo state,Yekini Adeojo, at the weekend, gave Oyo State governor, Adebayo
Alao-Akala a condition he should meet before he gets needed support for his
second term ambition.

Speaking with journalists at his Iyaganku Quarters residence in
Ibadan, Mr Adeojo said if the governor could survive a fraud-free primaries and
emerge the flagbearer of the party for the 2011 governorship election in the
state, he will wholeheartedly support his ambition.

He, however, described the feat as gargantua, saying it has
almost become a taboo going by the history of successive governors in the state
from its inception.

“It is a taboo for Akala to say he wants to do it twice.
Alao-Akala cannot do it twice. Chief Obafemi Awolowo, Chief Samuel Akintola and
Chief Bola Ige who actually performed well did not succeed.Somehow, they all
fell,” he said.

A former governorship aspirant in the state, Mr Adeojo condemned
Mr Alao-Akala for allegedly disrespecting the national leadership of the party
by not personally attending a meeting called to harmonise all factions of the
PDP within the party in the state last week.

Act unbecoming

The governor was said to have sent Olayiwola Olakojo, secretary
to the state government and one other person, to represent him at a meeting
organised by Okwesilieze Nwodo, PDP national chairman,to iron out issues on the
crisis rocking the party in the state.

“If Akala emerges after the party leadership at the national has
intervened and successfully harmonised all the groups, I will campaign for him.
But, we are not going to primaries with those old Oyo state executives because
they have been declared illegal by the INEC. The governor is not bigger than
the party because it is the party that made him. If a party called him and he
did not honour it, it shows he doesn’t have respect for the party,” Mr Adeojo
said.

The politician said the governor’s attitude is unbecoming of a
man who rose to the top through the help of the party.

Though he said he would not want to say unpleasant things about
the governor,whom he referred to as a brother, Mr Adeojo averred that it is a
bad showing for the governor to want to place himself above the party after
coming to the limelight through it.

While boasting that he was instrumental to the emergence of Mr
Alao Akala as the governor, Mr Adeojo, one of the notable members of the
coalition against the second term of the governor, said he will like to witness
a renewed harmony among the factions within the party.

Ministry staff prays for permanent secretary

Ministry staff prays for permanent secretary

With the redeployment of the permanent secretary in the ministry
of education, Oladapo Afolabi as the Head of Service of the federation, staff
of the ministry have been apprehensive over who takes over his job.

Their concern took on a new dimension when they recently met for
prayers to seek divine help for a competent hand to be deployed to the
ministry.

One of the participants at the prayer meeting, who did not want
to be named, said they gathered to pray as soon as the government announced the
appointment of Tunji Olaopa, former coordinator of the Education Sector
Analysis of the ministry as a permanent secretary. Before his appointment, he
was the Director of Programmes at the Bureau for Public Sector Reform, BPSR.

Some staff of the ministry express confidence in the ability of
Mr Olaopa to drive the ongoing reforms in the sector. “He has been there all
along and I was working in the publication unit of the ministry at that time,”
one of the praying staff said.

“He was driving the Education Sector Analysis process and he
drove it well, nurtured the project to a stable level before he left. Some of
the outcome of the project is what you see all over. Talking about quality
assurance, it was an offshoot of ESA, institutionalization of school based
management in all the schools was part of, it even UBE as it is being operated
now is a spin off. Before they started talking about reform, he had started
it.”

The prayer group said it was of the opinion that Nigerian
education sector needs to be pioneered by reformers who will ensure the
implementation of quality initiative. Not long after the Jomtien Conference,
Nigeria took specific measures aimed at translating the declaration on
Education For All into reality.

The activities embarked upon included a sensitization drive
mounted through the agency of the two national advisory bodies on education
policy, namely, the Joint Consultative Council on Education which brings
together various officials in Federal and State Ministries of Education, and
the National Council of Education which is composed of State Commissioners of
Education and the Minister.

The education subsector had glorious time between the fifties
and early seventies. However, by the nineties, twenty years after the national
policy on education, the sector has receded into a dark age characterized by
brain drain, campus cultism and examination malpractice.

Anti corruption agency probes Gemade overN400m fraud

Anti corruption agency probes Gemade overN400m fraud

The Independent Corrupt Practices and other Related offences
Commission (ICPC), is currently investigating the suspended managing director
of the Federal Housing Authority (FHA), Terver Gemade over allegation of
diverting N400 million belonging to authority.

The investigations are sequel to a petition written by a
non-profit group, Transparency and Anti-Corruption Vanguard and signed by its
Executive Director, Obioma Ugochukwu.

The petition alleged that the group’s investigations have
uncovered a massive fraud at the housing authority allegedly perpetuated by Mr
Gemade who is currently on suspension as an internal investigation to ascertain
his culpability begins.

“We have no faith in the so-called internal investigation. Our
investigations have revealed all manner of cover-ups are being done by his cronies
at the FHA and that is why we implore you to act expeditiously,” the petition
said, in parts. One of the allegations was the diversion of N400 million
belonging to the FHA into an escrow account without first obtaining approval of
the authority’s Executive Management Committee (EMC) or the FHA Board of
Directors as required by law.

Escrow account

“We have it on good authority that he pocketed the tidy sum of
N25 million as kickback for allowing the contractor to have access to the
N400million. Even though a query was issued to him by the Board of the FHA over
this transaction, he ignored the query,” the group alleged in the petition.

They also said Mr Gemade went further to transfer N140 million
from FHA escrow account to the Tangent Nigeria Limited project account, without
board approval and was allegedly rewarded with N10 million for his efforts.

“His bank details would reveal the staggered payments into the
account. He did not pay in the lump sum of the kick back, but paid in small
instalments. We urge you to obtain his bank statement from March 2010 in proof
of this allegation and you would see how he hides his proceeds of corruption,”
the petition said.

Mr Ugochukwu said the group is demanding a thorough investigation
into the allegations, alleging that since assuming office, Mr Gemade has
acquired a fleet of expensive cars and converted many buildings belonging to
the FHA to himself.

To the court

“While we have absolute faith in your organization to carry out a
thorough investigation, we shall be compelledto approach the law courts for an
order of mandamus to compel you to prosecute Gemade if no action is taken
within seven days,” the petition to the ICPC said.

All attempts to get Mr Gemade to react to the allegations, proved
abortive. One of his aides said he was away from the city, but did not reveal
where he travelled to.

The Federal Government recently suspended Mr Gemade for alleged
gross misconduct.

Minister of Lands, Housing and Urban Development, Nduese Essien
confirmed the suspension. The Special Assistant, (Media) to the minister,
Ibanga Isine, said government wielded the big stick based on allegations of
gross misconduct levelled against him by members of the board.

“The board had accused the former managing director of gross misconduct and
called on the government to constitute a panel to investigate him (Gemade),” Mr
Isine said. “After careful consideration of the matter and in view of Mr
President’s commitment to transparency, due process and the rule of law, the
former MD has been suspended for an initial period of three weeks to pave way
for his investigation.”

Capital market records mixed sentiments

Capital market records mixed sentiments

The Nigerian capital market has continued to thrive despite the
mixed sentiments recorded last week as the bourse closed transaction, during
the past week, higher than the preceding week.

The Nigerian Stock Exchange (NSE) had witnessed weak trading
sentiments in the early part of the week before it later recorded positive
output in the midweek on the back of moderate bargain witnessed across some
sectors, especially the banking sector.

Equity analysts at Proshare Nigeria Limited, an investment
advisory firm, said, “The active transaction recorded in the banking sector
coupled with moderate buying witnessed in other sectors impacted the impressive
outlook recorded as the week closed with aggregate of 1.00 per cent upswing to
step away from flat position recorded in the previous week.”

The key benchmark indices witnessed midweek recovery with
impressive reversal score of 0.77 per cent upward, erasing the previous loss
positions as all the NSE sectoral indices ended on positive note.

Analysts said the sustained buying closed all market indicators
positive while the All-Share Index climbed by 0.44 per cent on Thursday with
positive NSE sectoral indices.

However, the index slipped on weak momentum by 0.04 per cent on
Friday to put month-to-date market performance at a decline of 0.67 per cent
while year-to-date closed positive at 18.48 per cent.

The All-Share Index in the week under gained by 1.00 per cent to
close at 24,689.16 units as against a flat position recorded last week to close
at 24,444.28.

In the same vein, the market capitalisation in the week appreciated
by N78.23 billion to close at N7.88 trillion as against depreciation of N247.19
billion recorded in the preceding week to close at N7.80 trillion.

High volume

The total volume traded in the week closed at 2.02 billion units
valued at N12.43 billion compared with 1.90 billion units valued at N20.21
billion recorded in the previous week. The volume transaction in the week when
compared with the previous week data moved up by 6.41 per cent as against a
growth of 40.49 per cent recorded in the preceding week.

The banking sector emerged the most traded sector in the week in
terms of volume. The volume traded in the sector during the week closed at
972.48 million units valued at N6.94billion compared with the 1.38 billion
units valued at N15.13 billion in the preceding week. The volume traded in the
sector accounted for 48.08 per cent of the entire market. The sector’s volume
transaction was mainly boosted by trading in the shares of Wema Bank, First
Bank, BankPHB,

First City Monument Bank, Zenith Bank, Guaranty Trust Bank and
Intercontinental Bank.

Insurance sector followed with 412.22 million units valued at
N235.88 million compared with the 142.40million units valued at N107.23 million
recorded in the sector the previous week.

The number of gainers during the week moved up to 57 compared with the 36
appreciations recorded the preceding week. VONO Plc maintained previous
position to lead the gainers’ chart again, three consecutive periods, with
25.54 per cent appreciations. A total of 29 stocks recorded price decline in
the week under review compared with the 49 stocks that declined in the previous
week. Livestock Plc topped the losers chart for the week with 19.23 per cent
depreciation.

Money

Delta Airlines fly two million passengers from Africa

Delta Airlines fly two million passengers from Africa

Delta Airlines, an
international carrier operating into Nigeria has announced that it has
airlifted over two million air travellers from Africa since it commenced
operations in the continent in 2006.

The United
States-based carrier, which provides flight services in seven cities and
six countries in the continent, disclosed that Africa accounts for
about 27 per cent of its total revenue coming only second to the US
domestic market with 53 per cent. The airlines also offer 6,800 seats
weekly between Africa and the U.S.

Bobby Bryan, the
airline’s Commercial Manager for East and West Africa, who disclosed
this told reporters at a briefing in Lagos that the carrier’s year on
year improvement is about $878million.

Out of the two
million passengers transported from Africa, Mr Bryan explained that
336,000 travellers were airlifted from Nigeria to the United States
since it started operations in the country in 2007.

“2010 is quite
profitable for the airline with about $929million profit recorded in the
third quarter,” he said. “We are delighted to be in Africa and we
appreciate our Nigerian partners who have supported us this far.”

Mr Bryan said that
the Delta Airlines is exploring opportunities to work with Air Nigeria,
an indigenous carrier with operations on the domestic routes.

He described the
fact that airlines like Arik Air and United Airlines have commenced
operations on the Nigeria-US route, a positive development.

“We very much
welcome our competitors in the market and we are glad to have them here,
but we feel that or network is the strongest point that we have,” Mr
Bryan said.

“The Nigerian market is a rapidly developing market and we feel that
as the market increases we will get our fair share of the market and the
travelling public.”

Money

Government saves N12b with integrated payroll systems

Government saves N12b with integrated payroll systems

The Integrated Payroll and Personnel Information System (IPPS)
introduced to electronically capture the data of workers in the Federal Civil
Service has so far saved government over N12billion.

The system, is presently operational in about 16 ministries,
departments and agencies (MDAs), but it is expected to be introduces across the
country in the first quarter of next year, the Director General, Budget office
of the Federation, Bright Okogu, told journalists in Abuja.

Speaking during a session on the Budget process, Mr Okogu said
the electronic data capturing system is part of the present administration’s
strategy to stop wastage, particularly through leakages in the system as a
result of significant losses in salaries and pension payments to ghost workers
and retired employees in the Federal Civil service.

“The implementation of the Integrated Personnel and Payroll
Information System (IPPIS) in 16 ministries so far has helped reduce the number
of ghost workers on government payroll by over 7,000. That is why government is
poised at extending the system to other ministries, departments and agencies in
the first quarter of next year.

“Apart from helping government to update its data and records
for proper planning, the e-payment policy has been widely acknowledged as a
positive step to stem corruption, reduce administrative hostage taking
associated with payment to individuals and contractors as well as facilitate a
more transparent payment system that allows for effective monitoring,” Mr Opogu
said.

He described the proposed Sovereign Wealth Fund as a critical
part of the process by government to ensure fiscal consolidation and stronger
fiscal discipline, by ensuring that earnings from the natural resources are
saved for the development of basic infrastructure that would guarantee the
welfare of the people.

According to him, the Fund has the goal of helping build a
savings base for future generation of Nigerians by utilising part of the
revenue earnings from the oil and gas resources as well as to enhance the
development of critical infrastructure, like roads, railway system and airport.

Besides, he said the Fund will be used to provide stable
last-resort source of financing for commodity price-induced budget deficits
based on clear prudential guidelines.

2011 budget and reforms

Meanwhile, the government has allocated the sum of N37billion
for the Multi Year Tariff Order being managed by the Nigeria Electricity
Regulatory Commission as part of effort by government to subsidise the high
cost electricity supply for poor consumers.

The allocation, which is part of the overall allocation in the
2011 budget to facilitate the sustenance of the ongoing reforms in the energy
sector, also saw the Ministry of Power being allocated about N3.776billion for
recurrent expenditure and N86.250billion for capital projects, while the
Ministry of Petroleum Resources got N38.489billion for recurrent expenditure
and N10.27billion for capital expenditure.

The Ministry of Mines & Steel Development got
N11.513billion, and the Niger Delta Ministry was allocated N3.23 billion for
recurrent expenditure in addition to N53.40billion for capital projects.

The Presidential Amnesty Programme got the largest chunk of the
Niger Delta Ministry budget, with stipends and feeding allowance for
ex-militants getting about N17billion, while the reintegration of the
ex-militants got an allocation of N35.7billion. Operations cost of amnesty
programme got N1.95billion.

In addition, about N17.5billiuon has been set aside for the payment of the
2010 arrears for the re-integrated transformed ex-militants, apart from
N6.5billion for the settlement of the 2010 arrears for the
re-insertion/transition safety allowance for 20,192 transformed ex-militants.

Money

Equities’ capitalisation records gains

Equities’ capitalisation records gains

Investors at the Nigerian Stock Exchange (NSE) on Thursday
recorded additional gains on their equities’ value, as market closed trading on
a positive note.

The Exchange market capitalisation of the 201 First-Tier
equities closed yesterday at N 7.890 trillion after opening the day at N 7.856
trillion, reflecting 0.43 per cent upturn or over N34 billion gains. The market
had gained about N58 billion at the close of trading session on Wednesday.

All the NSE sectoral indexes also closed on positive notes as
the NSE-30, which measures the performance of blue chips in the market, gained
by 0.40 per cent. The NSE Insurance gained the highest point by 0.75 per cent;
Banking moved up by 0.72 per cent; Food/Beverages appreciated by 0.63 per cent
while the NSE Oil/Gas scored the lowest point by 0.30 per cent.

Analysts at Resource Cap, a portfolio management company, said
the recent rebound in the stock market “is a good sign” as the Exchange is
expected to perform better following activities of some “smart funds coming
into the market.”

Banks lead

The Banking sub sector was the most active on Thursday, leading
market transaction volume with 237.23 million units valued at N2.03billion as
against the 186.40 million units worth N1.47billion recorded on Wednesday.

The volume recorded in the sub sector was driven by transaction
in the shares of First City Monument Bank, Access Bank, Zenith Bank, United
Bank for Africa and Guaranty Trust Bank. The total volume of 153.11 million
units valued at N1.64 billion traded in the shares of the five stocks accounted
for 48.97 per cent of the entire market volume and their value represented
57.44 per cent of the market’s value. The banking sub sector closed yesterday
with 17 gainers to 3 losers.

The Insurance sub sector followed, trading 16.301 million shares
valued at N15.829 million. Transactions in the sub sector were largely driven
by the shares of Aiico Insurance, Oasis Insurance, and Continental Reinsurance.

More gainers

The number of gainers at the close of trading session yesterday
closed higher at 41 as against the 36 gainers recorded the previous day; while
losers closed lower at 17, compared with the 20 stocks recorded on Wednesday.

Cadbury Nigeria and Flour Mills topped the price gainers’ table
with an increase of N1.00 each on their opening prices of N26.00 and N68.00 per
share. Cement Company of Northern Nigeria and Okomu Oil followed in the chart
with an increase of 74 kobo and 66 kobo, to close at N15.74 and N13.87 per
share.

On the losers’ side, Ashaka Cement and Total Oil led the price
losers’ chart with a loss of N1.00 and 61 kobo, to close at N26.50 and N234.00
per share. Lafarge Cement Wapco Nigeria and SCOA Nigeria followed with a
decrease of 45 kobo and 43 kobo on their initial prices of N39.00 and N8.71 per
share.

Money

Consumers may pay lower telecoms tariffs in 2011

Consumers may pay lower telecoms tariffs in 2011

Telecommunication services consumers in the country may enjoy
lower call rates from 2011 going by the tariff war that started among operators
in 2010.

The crash in call rates started barely two weeks after Bharti
Airtel acquired former Zain and started re-branding the company.

Bharti Airtel, which took over mobile telephone operations in 15
African countries in a deal that has made it the world’s fifth-biggest mobile
company with 180 million customers in 18 countries, has never hidden its plan
to reduce tariffs in Nigeria.

Its chairman, Sunil Bharti Mittal, flaunted his company’s
low-tariff strategy while unveiling the brand identity in Nigeria. He said that
it will give other network operators a good fight to have a good share of
Nigeria’s telecoms market.

Just days after Mr Mittal’s statement, Airtel crashed its call
rates to as low as N9 per minute from the industry average rates of N35 to N42
per minute.

This price reduction strategy jolted the industry and elicited
responses from other network operators.

Other operators have now initiated a number of value added
propositions and tariff packages to sustain revenue and retain subscribers.

Etisalat had earlier slashed its call rates by 50 per cent from
a peak of 50k per second to 25k in its Easylife offer which has a daily access
charge of N20.

Steve Evans, chief operating officer of Etisalat Nigeria, said
that the company was unperturbed by Airtel’s low- tariff strategy.

Mr Evans said that his network was one of the best in Nigeria
and its tariffs were competitive.

MTN Nigeria has also introduced new tariff packages: MTN
Funlink, Smartlink, Prolink, Bizlink and Happilink that allow customers to
enjoy more air time at highly reduced costs to customers across its market
segments.

Globacom has similarly inaugurated a package in Port Harcourt,
Rivers state that enables telecoms subscribers to pay 25k per second for all
calls to any network in the country without any rental or access fee.

Price war is part of the
competition

Lanre Ajayi, President Nigerian Internet Group (NIG), said he
sees no link between tariff reduction and halting investment, adding that
Airtel’s action would stimulate expansion of networks rather than diminish
investments in the sector.

“On the other hand, it will call for further investment because
when you reduce tariffs, you are asking more people to make more calls and when
that happens, traffic increases.

“When traffic increases, it requires expanded network. It’s just
logical that when an operator is planning to attract more traffic to its
network, it’s planning to expand its network,” Mr Ajayi said.

He said price war is part of competition and “when you are going
to war, you use all tools at your disposal and price war just happens to be one
of the weapons in competition.”

“I think we should be paying less than what countries like Benin
Republic and Ghana are paying because this is a large market. It should not be
too surprising.

“The tariffs we are seeing now, I am not sure we have seen the
last. I believe it will soon go down further.

“I believe other operators will reduce their prices if they want
to remain in business, otherwise, who will want to pay higher tariffs when
there is an alternative of a lower one.

“Others will be forced to drop their tariffs and that’s what
competition does,” the NIG boss said.