Archive for nigeriang

Ondo indigenes back creation of councils

Ondo indigenes back creation of councils

Following the
inauguration of the Local Government Creation Committee by the Ondo
State government, some stakeholders in the state have urged the
committee to expedite action on the assignment.

The committee is
expected to complete its assignment in two months. Some individuals
have argued that the creation of councils in the state is belated. They
maintain that the state deserves more than the 18 councils it currently
has.

Jimoh Abu of the
Action Congress of Nigeria and Sunday Afelumo of the Labour Party said
northern states had benefited from council creation at the expense of
the South West states.

Mr Afelumo, who is
the caretaker chairman of Akoko North East, said creation of more
councils in Ondo State would bring rapid development to the grassroots.

He said, “Creation
of local councils is long overdue in Ondo State. It is sad that some
states in the north have more local governments than we in the South
West.

“Some councils
which are not up to a local government have been divided to two or
three councils. Kano is a good example of this. I think the decision of
the state government to create new councils is a welcome development.

“Our council, Akoko
North East can be divided into three different councils because of its
largeness. If the council can be divided into three, it will bring
rapid development to the grassroots”.

Mr Afelumo added
that the idea of local government creation being proposed by the state
government should be supported by all the indigenes of the state
without party affiliation

“This is not a party issue; it is an issue that has to do with the
development of the state. Every political party including those in the
opposition should back the idea,” he added.

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Akunyili criticises senatorial election

Akunyili criticises senatorial election

Former minister of
information and candidate of the All Progressives Grand Alliance
(APGA), Dora Akunyili, has described the Anambra Central senatorial
district election won by Chris Ngige as marred by violence,
intimidation and malpractices.

The Independent
National Electoral Commission, yesterday, announced Mr. Ngige the
winner of the rerun with a total of 69,765 against Mr Akunyili’s
69,292. But the former minister and her party in separate media
interviews yesterday picked holes in the election with the party
hinting it could contest the results in court.

According to Mrs
Akunyili, her agents suffered intimidation and molestation in such
areas as Nkpor and Enugwu Ukwu with some of them even being chased away
and forced to hide their tags to evade identification. In other cases
she said the real voters were disenfranchised to enable fake voters to
come and vote for ACN and noted that despite that, Mr Ngige’s victory
margin was low.

“I’m appalled by
the level of violence and thuggery and feel more pained by that than my
not being declared winner,” Mrs Akunyili said. She said she complained
to the state governor, Peter Obi, who chose the option of following due
process.

Mrs Akunyili,
however, said she harbours no bitterness and will continue to work for
the good of Nigeria and Anambra State as, according to her, she
believes in President Goodluck Jonathan, Mr Obi and the INEC chairman
Attahiru Jega.

She said INEC did a credible job but could not have been everywhere at the same time.

“I wish everybody luck and God’s choicest blessings,” she said.

She said she will
consult with Mr Obi, her supporters and family on the next step to take
but refused to congratulate Mr. Ngige saying he did not win in a fair
manner.

Set for court

Meanwhile in an
earlier press briefing, the state chairman of the APGA Mike Kwentoh
said the party would take all necessary steps to seek legal redress.

“In our
characteristic manner which is in tandem with the disposition of the
governor we call on all APGA supporters to remain calm and law abiding.
We shall seek every necessary redress through due process,” Mr Kwentoh
said.

Meanwhile the
victorious candidate, Mr Ngige yesterday received a group of youth
corps members from Anambra State who fled for safety from their areas
of primary assignment in various parts of the North.

While assuring them of his concern for their plight, Mr Ngige
thanked the people of the state for their support which helped him to
win his first ever election. He promised to be responsive to their
needs as a senator.

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Cross River Senate deputy leader gets third term

Cross River Senate deputy leader gets third term

The People’s
Democratic Party (PDP) in Cross River State has won the re-scheduled
senatorial elections for the south and central senatorial districts as
senate deputy leader, Victor Ndoma-Egba got his third term mandate with
a comfortable 143,537 as against 47,856 recorded by his main
challenger, Patrick Iwara of the Action Congress of Nigeria (ACN).

Similarly, a
member of the House of Representatives, Bassey Otu got promoted to the
upper chamber of the National Assembly when he defeated Eyo Etim Nyong
with a wide margin in Cross River South senatorial district. Mr
Ndoma-Egba won in the Central senatorial district, while Ben Ayade of
the PDP had earlier captured the northern senatorial district.

For the state
House of Assembly result, the PDP won 15 of the 25 seats which results
were announced as at yesterday evening by their returning officers and
is likely to win the remaining 10.

Result breakdown

Results released
showed the PDP won in Biase, Abi, Obanliku, Akpabuyo, Bekwarra, Ogoja,
Obubra 1, Yakurr 1, odukpani, Calabar South 1 and 2, Yala 1 and 2 and
Akamkpa 1 and 2 state constituencies.

The party in Biase
dusted the ACN candidate and serving member of the House Obo Mkpanam,
as he could only garner 5,468 votes. Ikpe Bassey Ikpe of the All
Nigeria Peoples Party (ANPP), got 3030; Ikenga Amang of Congress for
Progressive Change (CPC) 1393 votes; while Okpo Ngim Kanu of the PDP
won with 25,157 votes. The PDP candidate in Abi, Lebo John Gaul won
with 26,278, Isu Emori Ikwa of CPC scored 71 while the ANPP candidate,
Parton Echeng got 249 votes. It was also the same success story for the
PDP candidate in Obanliku state constituency. Ucheche Moses Ushie was
declared winner with 10,334, leaving behind Evey Maurice, Wayas the
ANPP former Speaker in the state, who got 3,418 under the umbrella of
ANPP and Taurus Godwin Akpah of ACN with 1,658.

The incumbent
lawmaker representing Akpabuyo, Effiom Etim Okon of PDP scored 7733;
Okon Nyong Effiom, ACN, 1666. For Bekwara state constituency, the PDP
candidate, Agaji Idagu Ajor, won with 24,978 votes beating Eneji Ogar
Chris of the ACN who got 2021, and Abua Ebeyin Atabuch of LP, 320.

The representative
for Ogoja constituency in the assembly, Patrick Uguge of the PDP
retained his position with 15,723 votes followed by Ayim Simon Okpokam
of the ANPP who got 4829 while John Ogon of CPC scored 131.

In Obubra 11
constituency, Moses Ono of PDP was re-elected with 16,129 votes and his
opponent, Monday Lawrence of the ACN scored 2876. In Yakurr 1, Mfawa
Ofegobi of the PDP was returned with 9163, Otu Bassey of ACN got 7244
votes and the LP candidate Ofem Wokasor scored 705 votes.

The PDP candidate
for Odukpani Ekpenyong Wilson got 15025, Asuquo Ekpo Ada of the ACN got
4317 and Kingsley Ndem Prince of the ANPP scored 233. Okon Edem Ephraim
of PDP emerged winner in Calabar South 1 with 8398, Gabriel Bassey of
the ANPP 3461, while in Calabar South 11, Joseph Archibong of the PDP
scored 9469, Ekong Iwatt Effiom ACN, 1536, Ekpenyong Ene Cobham of
ANPP, 1096.

Odey Okori of PDP
won with 13,572 votes in Yala 1, Alphonsus O.E, of ANPP got 6754 and
Ariku Donald of ACN, 594 and in Yala 11, Mr. Lukpata Ogana Nicholas of
PDP won with 14,156, Benedict Lukpata 898 and Unah Rosemary of ACN, got
373.

For Akamkpa 1
state constituency, Iyaya Asuquo Nyong of the PDP scored 14,302 votes
to beat Paul Moses Ntui of ACN, 789 and Joseph affiong of ANPP got nine
votes. For Akamkpa 11, O’ben-E George of PDP got 5,319 votes, Celestine
Awor of ANPP, 1,402 and Enyam James Okon of ACN, 333.

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Ogun State gets new governor

Ogun State gets new governor

The Independent
National Electoral Commission (INEC) yesterday announced the
governorship candidate of the Action Congress of Nigeria (ACN),
Ibikunle Oyelaja Amosun as the winner of the governorship election in
Ogun State.

The Returning
Officer of INEC in the state, Olufemi Balogun said the ACN candidate
scored 377,487 votes to win the contest. His two other major
competitors, Tunji Olurin of the People’s Democratic Party (PDP) polled
188,698 while the candidate of Peoples Party of Nigeria (PPN), Gboyega
Nasir Isiaka scored 137,051.

Mr Amosun said his victory marked a watershed in the history of the state.

“I accept the
mandate freely given to me at the polls with profound humility, a sense
of responsibility and gratitude to God Almighty and all the good people
of Ogun State,” he said. “The victory is neither for me nor our great
party alone. It is indeed a victory for our state and our people for
their steadfastness and peaceful conduct before and during elections.

“I salute and
extend hands of fellowship to my fellow candidates, particularly my
elder brother, Tunji Olurin and my brother, Gboyega Isiaka and their
respective parties for their gallantry and statesmanship. It is time to
move from politicking and bickering to rapprochement and rebuilding of
our state,” he said.

The announcement
of Mr Amosun as the next governor attracted wild jubilation across the
state, as party supporters and residents trooped out in large numbers
armed with brooms, the symbol of the ACN, to celebrate his victory in
the major streets of the town.

Congratulatory messages

The out-going
governor, Gbenga Daniel in a congratulatory message to his successor,
said “Amosun’s victory actualises the yearning of the people of Ogun
State for change of political platform in the governance of the state.”
Mr Daniel, in a statement signed by his Commissioner for Information
and Orientation, Sina Kawonise also congratulated candidates of the
three parties, ACN, PPN and PDP. The candidate of the PPN, Gboyega
Isiaka also sent a congratulatory message to the governor-elect.

“The challenge to
move Ogun State forward brought all of us into this battle, a winner
must emerge and he has won. For me, politics is just a vehicle to serve
the people and make society better; it is not a do-or-die affair,” he
said. “The wish of the people must be respected and they have spoken
with their votes. I wish Amosun well in the tasking job of making Ogun
State greater than he met it.” Former Ogun State governor and leader of
ACN, Olusegun Osoba described the victory of his party as a clear
testimony that he (Mr Osoba) had been vindicated, just as he added that
he would not interfere in the new administration.

“Politically, God
has vindicated Olusegun Osoba. I cannot ask for anything more from God.
I can assure you that the governor will have the freedom to perform his
functions within the party’s context. There will be no dictation from
anybody. I have no intention of interfering or sitting on the neck of
Mr Amosun,” he said.

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People’s Democratic Party triumphs in Kwara

People’s Democratic Party triumphs in Kwara

The Independent
National Electoral Commission (INEC) yesterday declared Abdulfatah
Ahmed, the People’s Democratic Party (PDP) governorship candidate, the
winner of the governorship elections in Kwara State.

Mr Ahmed,
currently the state finance commissioner, polled 254,969 votes winning
50.58 percent of the 504,102 valid votes cast. He defeated 15 other
contestants including Gbemisola Saraki, sister of the incumbent
governor, Bukola Saraki. His closest rival, Dele Belgore, of the Action
Congress of Nigeria (ACN) scored 152,580 votes, scoring 25 percent of
the total votes in eight local government areas. Mr Ahmed fulfilled the
25 percent requirement across the 16 local government areas of the
state.

Ms Saraki of the
Allied Congress Party of Nigeria (ACPN) scored 72,456 votes winning 25
percent of the votes in two local government areas of the state.

Displeased with result

However, expressing
displeasure with the results, the agents of the ACPN and ACN at the
collation centre unlike other party agents, refused to sign the result
sheet. Abdulmumini Anafi, the ACN agent at the collation centre,
claimed that the process was marred with series of malpractices and
intimidation and that the party will contest it at the tribunal.

“We have records
of all these and apart from that, so much multiple voting took place
and there were a lot of places where voters were scared away from
voting, they did not come out. They created so much fear to
disenfranchise them,” he said, claiming that the party will at the
appropriate time make known its official position.

Though the House
of Assembly results were announced at their various constituencies, the
State Resident Electoral Commissioner, Timothy Ibitoye announced that
PDP won 22 out of the 24 Assembly seats.

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Akpabio emerges victorious in Akwa Ibom

Akpabio emerges victorious in Akwa Ibom

Godswill Akpabio has been declared winner of the governorship election in Akwa Ibom State and returned for a second term.

Mr Akpabio who contested under the platform of the
People’s Democratic Party (PDP) won majority of the votes cast in the
state, defeating his main contender, John Akpanudoedehe of the Action
Congress of Nigeria (ACN).

The party won 29 out of the 31 local government areas excluding Uyo and Uruan local government areas where the ACN won.

The PDP had a total of 957,585 votes to emerge as
the winning party out of a total 1,648,808 votes cast, while the ACN
had a total of 163,449 votes to emerge second closely followed by the
Congress for Progressive Change (CPC) with 15,660 votes.

Announcing the results, returning officer in the
state, Comfort Ekpo said though there were pockets of election
malpractices, the results were okay to be presented.

“We have come a long way. Though we had some form of
malpractice along the line, party agents should take the election
results as the overall presented for the office of the governor.”

Party rejects results

The Director General of Akpanudoedehe campaign
organisation, Udoma Ekarika had earlier noted that the ACN had rejected
the results of the election, and called on INEC to cancel it.

The party accused the PDP of several electoral fraud
and irregularities including the use of hired thugs in police and army
uniforms to intimidate and shoot at the voters.

The electoral frauds mentioned were, “forcing people
to vote for the PDP, beating people up, snatching ballot boxes and
papers, shooting to intimidate voters, deliberate delay of delivery of
materials and commencement of voting, refusal to deliver vital
materials such as inks, pads, and result sheets”.

He said electoral irregularities were witnessed in
local governments like Uyo, Ibiono Ibom, Ibesikpo, Nsit Ibom, Nsit
Ubium, Uruan, Etinan, Ikot Abasi and Itu.

In announcing the results for their local government
areas, returning officers for the council areas reported that the
elections were relatively peaceful.

They explained that there were many incidents of
ballot-box snatching, intimidation of corps members and resistance of
electoral officers in some areas.

The use of guns and eruption of fighting in few
units made some corps members abandon their duty posts, and led to the
cancellation of elections in about 51 units across the state.

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Enugu governor invites opponents to join government

Enugu governor invites opponents to join government

Enugu State
governor Sullivan Chime, who was yesterday declared winner of Tuesday’s
governorship election, has invited those who contested the election to
join him in the task of rebuilding the state.

Mr Chime, who will
run Enugu for another four years, pledged in his acceptance speech to
run an open administration with a view to making the state the best in
the country.

The governor
contested on the platform of the People’s Democratic Party (PDP) and
garnered 419,790 votes to beat his closest rival, Okey Ezea who got
30,135 votes.

Others in the race
were Dan Shere of the People for Democratic Change (PDC) who won 29,565
votes; Valentine Nnaedozie of the Action Congress of Nigeria (ACN) with
5,086 votes; Obinna Obiegue of the All Progressive Grand Alliance
(APGA) who had 2,658 votes; Osita Okechukwu of the Congress for
Progressive Change (CPC) with 504 votes; and Emma Orji of the
Progressive Peoples Alliance (PPA) who won 1011 votes.

“I shall continue
to run an open administration which welcomes that all hands must be on
deck to make Enugu the best state in Nigeria. In this wise, I extend my
hand of fellowship to my brothers who contested the election with me. I
invite them to join us in the onerous task of re-engineering our
state,” Mr Chime said.

“We are all
winners today and shall remain so as long as the best interests of our
people are served. With God on our side, I am confident that the gains
of the last four years will be multiplied. Together, let us march
forward with the burning desire to recreate our state and make it the
destination of choice in our country.”

The elated
governor, who expressed gratitude to God and the people of Enugu State
for his victory, said he accepted their verdict and that he was humbled
by their endorsement, as amply demonstrated by the overwhelming number
of votes which resulted in his landslide victory. He thanked the people
for the confidence reposed in him and his deputy, Sunday Onyebuchi, to
renew their contract for another four years.

Winners all

Mr Chime also
congratulated all the PDP candidates in the house of assembly election
who have emerged victorious, as well as the leadership, members of the
party and his campaign organisation for a job well done. “In a special
way, I congratulate all our party’s House of Assembly candidates who
also emerged winners in yesterday’s election. In equal measure, I
congratulate the entire leadership and membership of our party, the PDP
and our campaign organization for a job well done. My gratitude equally
goes to the security agencies for ensuring the peaceful conduct of all
the elections in the state,” he said.

The governor also
extolled the critical role played by Enugu’s traditional rulers,
religious leaders and other individuals and groups which, he said,
ultimately resulted in not just his victory but in the building of a
virile democratic culture in their state.

He assured that he and his team will continue to offer selfless
service and good governance to the people, stressing “our four-point
agenda shall remain our guiding blueprint with which we will continue
to deliver democracy dividends that shall take Enugu State to the next
level.”

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OIL POLITICS: Serving the nation in hostile times

OIL POLITICS: Serving the nation in hostile times

The most haunting
words I have read on Facebook are the words penned by one of the
martyred youth corps members, Ukeoma Aikfavour, who had served in the
restive north of Nigeria. Thinking that the worst was over and perhaps
a few hours to the mindless termination of his life, he had written
these words:

“Na wao! This CPC
supporters would hv killed me yesterday, no see threat oooo. Even after
forcing underaged voters on me they wanted me to give them the
remaining ballot paper to thumb print. Thank God for the police and am
happy i could stand for God and my nation. To all corps members who
stood despite these threats esp. In the north bravo! Nigeria! Our
change has come.”

The stories that
continue to emerge from the post election violence reveal the depth of
depravity of the urchins, the rascals whose passion for human blood was
unleashed on innocent youth corps members and on persons of different
ethnic extraction and religious persuasion. The nation can, however,
take consolation in the heroic stories of Muslims who protected
Christians at a great risk to their lives. Such Nigerians should be
applauded for showing immense courage in the face of these acts of
barbarism.

If the report of
the refusal of the authorities of Yusuf Bala Usman College of Legal and
General Studies, Daura, Katsina State, to provide a bus to ferry youth
corps members to a secured camp is true, that marks another case of
insensitivity, an abhorrent behaviour, that could have exposed these
young Nigerians to harm had not a Good Samaritan stepped in to pay for
commercial buses to convey them to safety. The repeated inability of
our security forces as well as emergency agencies to help at this
critical moment illustrates a huge capacity deficit.

The low level of
care and security provided for these youth who served as ad hoc
personnel of INEC in the elections leaves much to be desired. These
youth were posted to northern Nigeria to serve the nation and not to be
hacked, brutally murdered and burnt on account of the electoral
process. It is nauseating to note that in Gombe State, one of the
earlier flashpoints, the mayhem began on the basis of the fact that the
margin of victory of the CPC over the PDP was not as wide as they had
wished. A similar trend equally emerged in Kaduna, shortly afterwards.

Apparently, for
these folks, victory or loss can provide convenient cover for
destruction. It is time for all parties to realize that in this season
of bloodshed, tears and sorrow, there will be a tomorrow. This is basic
wisdom if any party hopes to stay as a platform for national unity,
drawing support from across the nation.

The duty and onus
of responsibility for quelling the raging flames lie heavily on the
shoulders of our president. While it may be rather far-fetched to call
for a state of emergency to be declared in northern Nigeria, we cannot
overlook the fact that the dire situation warrants mobilisation of
military forces to check these violent outbursts before the nation is
engulfed in another senseless and unwarranted orgy of destruction.

Looking at the
electoral framework in our country, we must be thankful that for a
candidate to win the presidential poll, the person must secure at least
a quarter of the votes cast in two-thirds of the states of the
federation and the Federal Capital Territory, apart from securing a
majority of the aggregate votes cast. If victory were to be dependent
on just the winning of a majority of the votes cast, then it would have
been a different ball game.

The 2011 elections
may not be perfect, but it has clearly been seen as a huge improvement
over past efforts. Only a person to whom wrong is right and right is
wrong will refuse to acknowledge this.

My heart aches each
time a new story emerges from the sufferings of the victims of the post
election violence. When I recall that I have enjoyed living in and
making Edo State my base over the past three decades on account of
being posted there for National Youth Service, the essential usefulness
of the programme as a unifying force is real to me. Today, I begin to
have doubts, and do support the need for the evaluation and redesign of
the scheme. I am still pondering what my response would be if any of my
children is posted to serve in restive northern Nigeria. I know they
would have to decide for themselves, but a parent’s duty is also to
ensure that evil hordes and their sponsors do not kill the dreams of
our children who wish to serve their motherland.

Goodluck Jonathan’s call for all to step up to the rebuilding of the
nation is apt at this time when the smoke of battle can becloud our
sense of purpose. We urge the president to go beyond the promise of
compensation for the victims of the post election violence and take
steps to honour the youth who lost their lives while providing heroic
service to the nation in these hostile times.

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Labour-trade union feud still pending in court

Labour-trade union feud still pending in court

The feud between
the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC)
over the two factions of the Association of Senior Staff of Banks,
Insurance and other Financial Institutions (ASSBIFI) is still pending
at the National Industrial Court.

The two unions are
embroiled in a battle of wits over where the union belongs. A faction
claims it belongs to NLC while another is claiming affiliation to the
NLC.

Sunday Salako,
president, ASSBIFI, under the TUC, said the NLC ASSBIFI faction,
especially those in Union Bank “left our camp since 2004 and have since
been on their own. When they were here, they used to have the highest
number of staff members then, so there was this thinking that they must
produce the president of the association during any elections and then
there was a fall out. They say they are with NLC, and we are not. So
that is what happened.

He said the workers
withdrew from the association when they anticipated that because they
had the largest unit of attendance, they should always produce the
president of the union and hence, there have been legal issues over why
they still maintained the name of the union, instead of getting a new
one.

The matter, along
with other subsisting disagreement, was referred to the Industrial
Arbitration Panel (IAP) for arbitration. The IAP confirmed the
existence of inter union dispute in ASSBIFI and advised both parties to
return to the 2007 agreement.

Obukese Orere,
general secretary of the NLC faction of ASSBIFI, had earlier said the
constitution allows people to belong to any union they choose and that
people who say TUC is the umbrella body for senior staff are not
totally right.

Delay not healthy

The delay in
resolving this issue, however, has been proven to be harmful to member
banks and ultimately, the welfare of bank workers.

In February, the
dispute between both parties reached its peak when Union Bank banned
its chapter of ASSBIFI on grounds that it was not properly affiliated.

At the height of
the bank’s misunderstanding with its workers, it issued a statement
that “Following the unlawful operations of UBASS (Union Bank
Association of Senior Staff) and ASSBIFI (Association of Senior Staff
of Banks, Insurance and other Financial institutions), Union Bank of
Nigeria Plc has withdrawn its recognition of the above named trade
union bodies with immediate effect. All concerned have been duly
advised. The general public should please take note.”

Following this, the
NLC embarked on a nationwide picketing of the 94-year old institution,
basically disrupting its operations for several days. The Congress said
it is not the duty of Mrs Osibodu to de-recognise ASSBIFI, its
affiliate, or any industrial union since there are statutory bodies in
place to regulate trade union activities.

“On the legality or
otherwise of ASSBIFI, we wish to unequivocally state that the dispute
is still pending at the Industrial Arbitration Panel (AIP) and no
judgement has been delivered up to this moment to warrant the
unfortunate and totally contemptuous decision of the Union Bank
management,” the labour union had said.

The matter was,
however, resolved after the minister of labour waded in and advised the
bank to accede to the demands of the union.

Industry watchers and banks have said they would not be part of what is happening until the issues are legally addressed.

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Farmers settle N5.8bn in loan repayment

Farmers settle N5.8bn in loan repayment

A total of N5.85
billion was repaid as loans by Nigerian farmers under the Agricultural
Credit Guarantee Scheme Fund (ACGSF) last year. The highest repaid
amount of N769.15 million, representing 13.15 percent of the total, was
made by Delta State, followed by Katsina and Adamawa states with
N667.21 million and N532.64 million, respectively. Ekiti had the lowest
repayment figure of N15.7 million, trailing Abuja, which repaid N19.12
million, and Bayelsa, which repaid N19.18 million.

According to data
released by the Developmental Finance department of the Central Bank of
Nigeria (CBN), the funds were disbursed to finance 50,119 projects
across the country, with Katsina State topping the list at 7,184
projects, followed by Kogi and Sokoto states with 6,877 and 5,618
projects, respectively. Abuja had the least number of projects with 50
while Ekiti and Bayelsa had 111 and 120 projects, respectively.
Nassarawa State did not record any projects.

Since its establishment in 1978, the ACGSF has granted around 692,716 loans valued at about N41.34 billion.

The ACGSF was
formed solely to encourage financial institutions to lend funds to
those engaged in agricultural production and agro-processing
activities, with the aim of enhancing the export capacity of the nation
as well as for local consumption. The fund is set up with the sole
purpose of providing guarantees in respect to loans granted by any bank
for agricultural purposes.

Interest Drawback

Likewise, N694.67
million has been repaid to farmers under the Interest Drawback
Programme (IDP) of the ACGSF. The IDP was set up in 2004. Under the
IDP, farmers shall borrow from the lending banks at market-determined
rates and after the liquidation of the loan, they shall be entitled to
interest drawback at the pre-determined IDP rate. The IDP has an
authorised capital fund of about N2 billion and is funded jointly by
the federal government and the Central Bank of Nigeria (CBN) in the
ratio of 60:40.

Under the IDP, the
highest amount paid during the period was made last year when N227.44
million was paid out. According to the CBN, the repayment trend is
encouraging. “A trend analysis of the loan repayment performance of the
ACGSF over the years shows that the IDP has impacted positively on the
operations of the scheme as it induced clients to repay on time,” the
CBN stated.

To be eligible for
the loan drawdown, a farmer must have repaid both loan principal and
interest within the agreed tenure. However, a grace period of three
months for repayment may be allowed but drawback entitlement shall be
calculated only up to the scheduled date for the final repayment of the
loans. This means that interest accruing during the grace period will
not be part of the amount to be refunded.

“Farmers that liquidate loans after the expiration of the guarantee
certificate/grace period are not eligible and shall be disqualified,”
say the CBN guidelines. “A loan for which repayment period is extended
after the expiration of the original guarantee certificate shall not
qualify to benefit under the IDP.”

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