Archive for nigeriang

Nigerian Starcomms sells facilities for $81 million

Nigerian Starcomms sells facilities for $81 million

Nigeria’s biggest
fixed wireless operator, Starcomms, said it concluded a $81.4 million
sale and leaseback agreement for 407 of its 557 base stations with a
local telecoms service provider.

Starcomms said on
Wednesday the deal with Swap Technologies will see the service provider
taking over the operation and maintenance of the 407 towers, which
include the structure and power components, while it keeps its network
and radio components.

“By leasing rather than owning these passive infrastructure network
facilities, we can free up capital to fund additional growth, reduce
debts and operational costs … as well as allow management to focus on
its core business,”

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Microfinance banks show interest in building project

Microfinance banks show interest in building project

No fewer than 96
microfinance banks have expressed interest in participating in the
IFAD-assisted Rural Finance Institution Building Programme (RUFIN) in
Nigeria.

The national
coordinator of the programme, Musibau Azeez, made the announcement on
Monday in Abuja, when he led the supervision mission team of the
programme on a courtesy visit to Bukar Tijani, the national
coordinator, National Programme for Agriculture and Food Security.

The Federal
Government in May 2006 approved the blueprint for RUFIN, and in August
2008 signed a loan agreement with the International Fund for
Agricultural Development (IFAD), amounting to 27.2 million dollars, for
the implementation of the programme over a seven-year period.

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World Bank wants global accounting standards for Nigeria

World Bank wants global accounting standards for Nigeria

The World Bank
Group says it is working towards promoting the application of
international accounting standards in the country in a bid to
institutionalise greater transparency in financial reporting in the
banking and financial sectors of the economy.

The International
Finance Corporation (IFC), the investment arm of the World Bank, is to
collaborate with PricewaterhouseCoopers LLP, a corporate accounting and
finance consulting firm, to educate practitioners on the need to adopt
the accounting standards to enhance greater transparency in financial
reporting in the country, and allow Nigerian companies meet the
disclosure requirements of international investors.

IFC, which is the
largest global development institution focused on the private sector in
developing countries, is involved in efforts to create opportunities
for people to escape poverty and improve their lives by providing
financing to help businesses employ more people and supply essential
services.

Awareness and understanding

Managing partner,
PricewaterhouseCoopers, Ken Igbokwe, said in a statement that more than
80 banking and financial sector practitioners recently participated in
a one-day seminar in Lagos to help improve awareness and understanding
of the issues involved with adopting new International Financial
Reporting Standards (IFRS).

According to Mr.
Igbokwe, the impact of IFRS goes beyond reporting by accountants, and
covers all standards for measuring business performance, adding that
this makes it important that line managers understand its effect on the
internal and external reporting of the operations and performance of
the business.

IFC country manager
for Nigeria, Solomon Adegbie-Quaynor, said embracing the IFRS was
important to assist the financial market in preparing for the process
of change and to realise the importance and benefits to be derived from
increased transparency in financial reporting.

Removing subjectivity

Identifying the
benefits, Mr. Adegbie-Quaynor said apart from helping to remove some
subjectivity from financial reporting, the IFRS provides a consistent
basis for recognition, measurement, presentation, as well as disclosure
of transactions and events in financial statements, pointing out that
the challenge is in getting not only accountants, but other operators
in the banking and financial sectors, to adopt them in their operations.

“As more African
businesses operate internationally, it is important for investors to be
able to compare companies under similar standards in all countries
where they operate. Greater transparency, which these standards will
bring, is likely to attract increased investment into Nigeria,” he said.

Besides, he said,
local companies seeking dual listing in other countries will find IFRS
easier to comply with reporting requirements of overseas stock
exchanges, while governments will be in a better position to assess the
tax liabilities of multinational companies receiving income from
overseas, as well as for foreign multinationals setting up shop in
their own country.

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Wema Bank scales recapitalisation hurdle

Wema Bank scales recapitalisation hurdle

The Central Bank of
Nigeria (CBN) has stated that it is still in the process of verifying
the raised capital of Wema Bank, a month after the deadline set for the
bank to recapitalise. The CBN had set October 30 for the bank to
recapitalise after it failed to meet an earlier deadline of September
30.

Mohammed Abdullahi,
the spokesperson of the Central Bank, said the regulatory body is still
at the process of capital raising verification.

“That is what we
are still doing. Our update on the verification of the bank’s raised
capital and confirmation on the loans it is said to have recovered is
still valid,” he said.

In first week of
November, the Central Bank stated that it would embark on a
verification process on the N7.5 billion claimed to have been raised by
the bank and the loan of N4 billion it also claimed to have recovered.

The regulatory body
had in October stated that it had granted a 30-day extension to Wema
Bank Plc to enable it conclude its recapitalisation, which ended
October 30.

“At the expiration
of the deadline, the CBN is pleased to note that Wema Bank Plc was able
to raise the sum of N7.5 billion from the Special Placement Offer,
approved by the Securities and Exchange Commission (SEC), and was
formally authorised during the bank’s completion meeting, held on
Tuesday, October 28, 2010,” according to a CBN statement.

The regulator
stated that the total subscriptions of N7.5 billion had been received
in the offer proceeds account domiciled with the Receiving Bank to the
Offer, Skye Bank Plc. In addition, Wema Bank made recoveries of N4
billion on its outstanding loans within the same period.

“Consequently, the
CBN will embark on the verification of the capital raising exercise and
confirmation of the loan recoveries made by the bank,” the statement
said.

The Central Bank
spokesperson said the full recapitalisation of Wema Bank is expected to
be concluded with the sale of some of the bank’s non-performing loans
to the Asset Management Corporation of Nigeria (AMCON), when the latter
becomes operational.

“Meanwhile, Wema
Bank’s application for a regional commercial banking licence is also
receiving the attention of the Central Bank of Nigeria. All
stakeholders are to be guided accordingly,” the statement added.

Shareholders support

Wole Ajimisinmi,
the bank’s company secretary, said the bank has been carrying its
shareholders along in its recapitalisation process.

“The last time we
had our Annual General Meeting in June, we got approval by the
shareholders to issue new shares and embark on a special placing offer,
after given the go ahead by board of directors. Shareholders also
endorsed the decision of the Board to obtain a Regional Banking licence
when the proposed new licencing regime came up,” Mr. Ajimisinmi said.

The bank’s
management said its recapitalisation process includes recovery of
delinquent loans through internal efforts, and resolution of some of
the nation’s delinquent risk assets using the AMCON window, raising
additional equity through special placing, and application for a
Regional Banking Licence.

In the banks
unaudited balance sheet for the first half of the year released in
August, gross earnings of the bank stood at N14.6 billion, and profit
after tax stood at N1.07 billion. The bank still carries a long term
facility from the CBN of N87 billion, which the bank expects to clear
using the AMCON window.

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HABIBA’S HABITAT: Leading us down the road to hell?

HABIBA’S HABITAT: Leading us down the road to hell?

Forgive them…they
know not what they do. I was recently in the company of a group of
mortgage bankers who were discussing the state of access to sufficient
and affordable housing in Nigeria. One of the elder participants shared
how he obtained a mortgage from the government as a young professional
starting his first job; the same home he lives in till today.

A younger member
made a passionate appeal for understanding of WHY? He was asking for
the How and Why successors of those patriotic and humane civil
servants, who worked so hard to bring affordable and plentiful home
ownership to our citizens, were not able to sustain what they put in
place. In those days, all that was needful to qualify for a mortgage to
buy or build a house was a pay slip.

Of course, this
same lament, ‘WHY?’, reverberates in every part of our lives that is
reliant on a functioning government and watchful regulators. With that
passionate and pained appeal in mind, I posed the question myself. Why?

I believe that one
explanation is the mindset of the people who have been in position of
leadership and influence in the public sphere over the last 50 years,
and in the last 10 years it has spilled over into the private sphere
too.

One of the most
famous quotes from Abraham Maslow, the creator of Maslow’s Hierarchy of
Human Development Needs is, “If the only tool you have is a hammer, you
tend to see every problem as a nail.” I would like to believe that that
is one of the major problems with our leadership.

In the run-up to
independence from colonial rule, our politicians and community leaders
were subconsciously indoctrinated with ‘Divide and Rule’ as the
leadership tactic passed on from then governor-generals who were the
available leadership role models. Our soldiers have always been taught
‘Command and Control’ as the necessary leadership strategy for managing
troops.

Consequently, our
leaders have been using those tactics that are designed for use against
us, their people. We have been waging war against ourselves! Any other
explanation seems improbable. Are we prepared to accuse the generals
who were patriotic enough to lay down their lives for our country on
both sides of the Biafran war of not loving their nation? I have not
spoken to anyone who holds those views. They are the ultimate patriots.
So, why was it under their rule that our educational system was
decimated; that our traditional values and loyalties were warped?

Let’s look at the
politicians. The great trio who led us into independence were, in fact,
members of a pan-African movement comprising of great African men and
women, including my personal favourite, Funmilayo Ransome Kuti.
Yet,after 50 years of independence, why on earth is politics still
being played along ethnic lines? If the British returned today, they
would find the country operating almost under the same regional model
they left us with.

The democratic and
military governments simply stepped into the shoes vacated by them.
They are still extracting wealth to be warehoused beyond our shores.
They are still enshrouding themselves with cloaks of privilege and the
trappings of wealth amassed on the suffering of others.

Harmful to themselves

“Forgive
them…they know not what they do,” said Jesus, (a.k.a Isa to Muslims),
while being crucified on the cross. Do we forgive our leaders for their
willful ignorance,their criminal lack of awareness and their failure to
act even in enlightened self-interest? What respect can we have for
power ministers who have to resort to generators even in their own
homes; or health ministers who shudder at the thought of submitting to
medical treatment in their own hospitals?

Let’s not talk
about petroleum or agriculture. They have not even made life better for
themselves, not to mention for the rest of us. How many of them have
true wealth by the time they are pushed out of power and in the years
after?

Democracy demands
tolerance for contrary opinion. There must be division of power,justice
for all regardless of status and hierarchy and freedom of
information.Divide and Rule, and Command and Control are not democratic
leadership styles.Yet, they seem to be the only styles our leaders
know. Just as the soldiers crushed any perceived ‘mutiny’ against their
command without considering the merit of the challenge to their
authority; just so, our legislators wish to self-perpetuate, all in our
perceived interest to command and control party politics. It is truly
ironic. Why does this scenario keep repeating itself?

“The road to hell
is paved with good intentions” As Samuel Johnson is credited to have
said, many a good wo/man has come to a bad end for employing unjust and
dishonest means to achieve a good end. So our darling leaders, take
heed. You are there to represent us, to protect our freedom even from
yourselves and to seek justice for us. Have faith that if you do your
job well, and if we elect a similarly responsible person to succeed
you, that our country will develop and our lives will improve.

Trust in the system you are part of, and allow yourself to be
limited by its structure. Avoid changing the rules of engagement
half-way through the game. You alone, no matter how hard you try,
cannot deliver what we all require. Only with three independent organs
of government, regulated by the media as the fourth estate, with an
engaged and active citizenry, and vibrant party politics can we
succeed. How do you wish to be remembered – as a burden or as a welcome
relief? The time to choose is now.

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Federal government approves N64b more for roads

Federal government approves N64b more for roads

The Federal
Executive Council (FEC) has approved a total of N64 billion worth of
road contracts, yesterday during its weekly meeting. Out of the total
sum, over N53billion was approved for roads in the Niger Delta, while
N10billion was given for roads in the Federal Capital Territory.

While briefing
pressmen after the weekly FEC meeting, which was chaired by President
Goodluck Jonathan, the minister of information and communications, Dora
Akunyili alongside the ministers of state for FCT, Caleb Olubolade;
Niger Delta, Samuel Ode; Power, Nuhu Wya and Information, Labaran Maku
said the Niger Delta road contracts constitute a major component of the
post amnesty intervention projects of the federal government to improve
the road network in the Niger Delta region.

The road contracts
awarded include; Ogriagbene-Torugbene road in the sum of
N12.875billion;Re-construction of Benin-Abraka road in the sum of
N9.750billion; Orhorho junction-Odorubu-Kpakiama-Bomadi road in the sum
of N9.635billion; 35km Okputuite-Mbato junction-Orie market-Lomara
9Igwebuike road in Abia State in the sum of N9.01billion; Omelema-Agada
2 road in the sum of N6,22billion and rehabilitation of
Okpuala-Igwurunta road in the sum of N6.411billion.

“In order to open
up rural areas in the FCT, Council approved the award of contract for
the construction of ONEX-Bwari Road in the FCT, in favour of Messrs
Parsons Science Engineering Company Ltd, in the sum of N2.017billion
the completion period is 24 months” Mrs. Akunyili said .

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National Industrial Court gets constitutional backing

National Industrial Court gets constitutional backing

The Senate on
Wednesday passed the third amendment to the 1999 constitution, in order
to enshrine the establishment and operation of the National Industrial
Court in the constitution, as a court of superior record amongst courts
established for the federation, four years after it was established.

The court was
established through an Act in 2006, but the National Assembly said it
has not performed optimally because it was not listed in the 1999
constitution.

“For the Industrial
Court to achieve the purpose for which it was established, the court
must clearly and expressly be listed in the relevant sections of the
constitution dealing with judicial powers and related matters, even as
supported by the Supreme Court judgement in suit No. Sc. 62/2004,” said
Ike Ekweremadu, the deputy Senate president and leader of the ad hoc
committee on the review of the 1999 constitution.

The court would
have and exercise jurisdiction in civil matters relating with any
labour, employment, trade unions, industrial relations, and matters
arising from work place, the conditions of service – including health,
safety, and welfare of labour, employee, worker – and other matters
incidental to it.

The court will also
preside over matters arising from Factories Act, Trade Dispute Act,
Trade Unions Act, Labour Act, Workmen’s Compensation Act, or any other
law relating to labour, employment, industrial relations, workplace, or
any other related law.

New layer of justice

The court will also
determine issues relating to grant of any order restraining any person
from taking part in any strike or any industrial action, lock outs, and
(or) issues connected with any dispute arising from national minimum
wage for the federation or any part of the country.

The court, upon the
completion of the amendment process, would attain the status of a High
Court in all ramifications, and appeals from its judgments will be
heard and terminate at the Courts of Appeal.

The court will be
headed by a president and will be constituted by at least one judge or
at most, three judges, as the president of the National Industrial
Court may direct. The president of the court will be appointed by the
president on the recommendations of the National Judicial Council,
subject to the confirmation of the Senate.

Following the
passage of the bill at the Senate, progress on the bill is dependent on
the House of Representatives and subsequent assent of at least 24
states Houses of Assembly.

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Witness indicts agency officials in alleged N787m fraud case

Witness indicts agency officials in alleged N787m fraud case

The executive
secretary of the Universal Basic Education Commission (UBEC), Ahmed
Modibo, has alleged that evidences abound on how officials of the
commission defrauded it.

Testifying at a
Federal High Court in Abuja, in the suit instituted by the EFCC against
four officials of the commission and three others, Mr. Modibo alleged
that they defrauded it to the tune of N787 million.

He said the accused used fake companies and forged newspaper publications to commit the act.

Mr. Modibbo said
that four of the six companies involved in bidding for the supply of
plastic chairs and desks to junior secondary schools in the country in
phase one of the project were fake.

He submitted that
the former executive secretary of the commission, Bridget Sokan,
directed him to write a memo to the Education Trust Fund (ETF) for the
release of the funds.

Mr. Modibo said he noticed foul play when the ETF replied that the phase one of the project was not properly executed.

He said that a
Unity Bank branch and an oil service company were located in a building
which two of the companies involved in the bidding claimed as their
address in Port Harcourt.

He added that Mrs.
Sokan’s price and contract evaluation committee awarded the contract of
N787 million, out of which N636 million was paid as mobilisation fee to
Intermarket Nig. Ltd.

The News Agency of
Nigeria (NAN) reports that Mrs. Sokan and six others are facing a
63-count charge, bordering on fraudulent inducement, criminal
conspiracy, and criminal subversion of due processes in the award of
contracts.

Other persons
standing trial in the case are: Molkat Mutfwang, Michae Aule, and
Andrew Ekpunobi, while Intermarkets USA, Intermarkets Nig. Limited, and
Alexander John Cozman are the companies allegedly used to perpetrate
the fraud.

Justice Adamu Bello adjourned the case to February 14 and February 21, 2011 for continuation of cross examination.

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Court upholds party zoning

Court upholds party zoning

The controversial zoning arrangement of the Peoples
Democratic Party (PDP) took another dimension yesterday when an Abuja
High court ruled that the constitution of the party recognizes the
principle of zoning and rotation of party and elective offices,but it
is wrong to claim that the North is entitled to bear the party’s
presidential ticket in the 2011 presidential polls.

Delivering judgment on the matter, the Chief Judge of
the High Court of the Federal Capital Territory (FCT), Lawal Gummi held
that nomination of presidential candidate of the party is within the
realm of its domestic affairs and as such, not judiciable.

“The provision of Article 7.2 (c) of the 1st
defendant’s constitution 2009 as amended recognizes the principle of
zoning and rotation of party and public elective offices,” he said.
“The said article is subsisting and binding on the party, its organs
and members but I am unable to make a declaration that the North is
entitled to bear the presidential ticket of the 1st defendant for two
consecutive terms. i.e. 2007 and 2011 respectively as the South did in
1999 and 2003 same being a political question and therefore not
justiciable.”

Specifically, he said there is no ambiguity in the
wordings of Article 7.2 (c) of the PDP constitution that can generate
unnecessary controversy, adding that the article provides that: “In
pursuance of the principles of equity, justice and fairness, the party
shall adhere to the policy of rotation and zoning of party and public
elective offices and it shall be enforced by the appropriate executive
committee at all levels.

“Though PDP’s constitution recognizes zoning and
rotation, it is an internal matter for the party to determine and
decide how and to where the zoning is done as forcing a political party
to sponsor candidates from a certain zone in the country will amount to
delving into the internal affairs of the party”.

Internal matter

Mr Gummi noted that the court’s attitude is to
interpret the words of a statute or instrument,not to force a politcal
party to sponsor candidates from a certain zone in the country , he
said , doing that will be delving into the internal affairs of the
party which is not the the duty of the judiciary.

“If a party’s constitution makes a provision as to
how its affairs should be run, it must be run in that manner and the
court is duty bound to ensure that the party complies with its
constitution’s requirement’’.

“I also refuse to make a declaration that the 1st
defendant will be in breach of its constitution if it sponsors a
southern presidential aspirant where the North has not exhausted its
two consecutive two terms as the constitution does not provide for such
specific arrangements”, he said.

It would be recalled that Sani Aminu Dutsinma had dragged the ruling
party and its National Chairman, Dr. Okwesilieze Nwodo, before the
court challenging the party’s stand on the controversial zoning of the
presidency.

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Party wants two INEC officials removed

Party wants two INEC officials removed

The All Progressive
Grand Alliance (APGA), on Wednesday, demanded the removal of the
Secretary to the Independent National Electoral Commissioner, Abdullahi
Kaugama and one of its commissioners Philip Umeadi over their alleged
roles in the lingering crisis in the party.

According to a
communiqué signed by its National Secretary, Bello Umar after its
National Executive Committee (NEC) meeting in Abuja, APGA said that in
May 2009, Mr Kaugama wrote a letter confirming Mr Okorie as the
national chairman of the party pending the final determination of the
disputes between the two factions, but turned around in August this
year, in another letter, to declare Victor Umeh as the chairman. The
NEC also alleged that Mr Umeadi misled the commission when he used his
capacity as commissioner in charge of legal matters to lie to the
public that the courts had established Mr Umeh as the then national
chairman when no court made such pronouncement. It added that Mr Umeadi
usurped the powers of the Edo and Ondo States Resident Electoral
Commissioners (REC) when he announced the results of the gubernatorial
elections in the two states in Abuja contrary to the provisions of the
Electoral Act. The committee said it has through its National Working
Committee (NWC) written a petition to the President Goodluck Jonathan,
the Senate President, David Mark and the Speaker of the House of
Representatives, Dimeji Bankole to demand the removal of the two INEC
officials from office.

A Federal High
Court sitting in Abuja had, on November 23, declared the party
leadership headed by Chekwas Okorie as the authentic one. The court
also declared that the party’s 2009 national convention was in order.

Time for primaries

The NEC has
approved a timetable for the conduct of party congresses and primaries,
which will end with a national convention on January 15, 2011 where the
candidates will be ratified.

According to the
timetable, both the governorship and presidential primaries will hold
January 12 while hearing on the appeals arising from the exercises have
been fixed for January 14.

The committee also
approved N10 million as nomination fee to be paid by presidential
aspirants and N5 million by governorship aspirants.

Other categories
approved are senatorial aspirants N1m; House of Representative
N500,000.00; State House of Assembly N200,000.00; local government
chairmanship N250,000.00 and Councillorship N20,000.00. Women aspirants
are to be excluded from paying the fees.

He however, sympathised with aspirants who had paid nomination fees
to the Umeh faction but said “I assure all genuine aspirants who wish
to contest elections in the 2011 general elections and various local
government elections on the platform of our great party of a
level-playing field without prejudice or discrimination whatsoever.”
All attempts to reach Kayode Idowu, spokesperson to the INEC chairman
failed.

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