Archive for nigeriang

Central Bank sets new cash withdrawal limits

03/05/2011 No comments

Central Bank sets new cash withdrawal limits

To discourage the use of raw cash in economic transactions in
the country, the Central Bank of Nigeria (CBN) has taken steps to promote the
use of electronic payment systems.

The CBN yesterday in a circular to all banks, Cash-in-Transit
(CIT) operating firms, payments system service providers, as well as money card
acquirers, issuers and processors, said that the new policies, including
payment of increased penalties for cash transactions by individual and
corporate bank account holders, are to help reduce the high usage of cash as
well as moderate the cost of cash management among operators in the country’s
financial system.

The CBN’s director, currency operations department, Muhammad
Nda, said in the circular that the increasing use of cash in transactions has
dire consequences on the overall economy, particularly concerning cost of cash
management to the banking industry, security, and money laundering.

To limit the negative impact on the economy, Mr Nda said the CBN
has directed all deposit money banks (DMBs) in the country to ensure that,
effective June 1 next year, daily cumulative free cash withdrawals and
lodgements by individual and corporate customers do not exceed a maximum
ceiling of N150,000 and N1 million respectively.

Cut down on cash
transactions

Consequently, he said the CBN has imposed a penalty of N100 per
N1000 on all individual cash transactions in excess of the limit, while
corporate customers that go contrary to the new policy are to pay a fee of N200
per N1000 withdrawn above the stipulated cumulative limit.

The circular added that, “Contravention of this policy shall
attract a fine of five (5) times the amount that the bank waives as a first
offender, while the bank shall, subsequently, pay ten (10) times the charges
waived.”

Though commercial banks are allowed to charge their customers at
least an interest of N5 per N1 million as cost of transaction (COT), there is
no approved rate stipulated by the CBN for overdrawn accounts, as the customers
are allowed at the discretion of their bankers.

With effect from June 1,this year, operators of card payment
schemes, processors, switching companies, service providers, and banks risk
being suspended for a month or licence revoked by the CBN, for not acquiring
approved operational agreements/contracts for local currency Point of Sale
(POS) card scheme.

“All financial institutions, including Deposit Money Banks (DMBs),
Savings and Loans, Mortgage and Microfinance Banks shall comply accordingly.
Compliance with the policy shall be monitored by the Banking Supervision
Department and the Other Financial Institutions Supervision Department with
appropriate sanction applied to erring institutions,” the CBN warned.

Similarly, in line with the new policy, third party cheques by
individual customers in excess of the N150,000 limit would no longer be
eligible for encashment over the counter, as the value for such cheques will be
required to go through the clearing house.

Besides, the CBN said where a bank allows a third party cheque
encashment in violation of the stipulated regulation, such a bank would be made
to pay higher than the sanctions between 10 per cent of the face value of the
cheque and N100,000 fine.

On cash-in-transit (CIT) lodgement services rendered to
merchant-customers, the CBN ordered its immediate stoppage, effective June 1,
2012, adding that customers interested in such services should engage the CBN
licenced CIT operators to aid cash movement to and from their banks at agreed
terms and conditions.

The new arrangement, which is to be operational initially in
some major cities, including Abuja, Lagos, Port Harcourt, Kano, and Aba,
attracts a fine of N1 million per specie movement for violators.

This step, many believe, would help curb incidents of violent
robberies which have become common because people move huge volume of cash
around.

However, there are concerns about the implementation of this new
policy, especially as it would mean transiting from a cash-based economy to a
near cashless one in just one month. A medical equipment supplier who gave his
name as Monday, said the policy would cause some distortion in the economy in
the short term.

“For instance, some of my customers always insist on cash
payment before they would release their goods. How do we make this change all
within one month,” he asked.

He said the CBN ought to have carried out sensistisation
programme to prepare Nigerians for the transition.

Currency outside the banking system is currently put at over
N1.025 trillion, as at February, according to the latest official figures
released by the Central Bank.

The figure stood at N927 billion as at December 2009, due
largely to skepticism about the efficiency of the Nigerian banking system.

The latest move is expected to reduce the amount of currency
outside the banking system.

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GTB, First Bank customers lament service breakdown

03/05/2011 No comments

GTB, First Bank customers lament service breakdown

Customers of First Bank and GTB yesterday had hard times
transacting business at the banks as their networks broke down. Normal services
were not resumed until after midday, leading to frayed tempers in the banking
halls across Lagos.

The banks have been showing signs of network challenges, either
technology migration induced or just service breakdown. Visits to branches of
the banks showed that the challenges faced by the banks before the long Easter
breakstill persisted, as both had their banking halls filled with aggrieved
customers.

Tough business day

The network challenges made it difficult for customers to
transact business. Mostly affected were those who wanted to withdraw money from
their accounts through the Automated Teller Machines (ATMs), as the banks
continued to accept deposits but could not post them immediately.

Funmi Adekoya, a customer said, “Last Thursday, I was here and
they officially announced to us that they were having network challenges; that
we should bear with them, because their services would be below expectation. I
initially thought it was because of the rush for withdrawals by customers
because of the long break ahead, but a week later, I am surprised that am
starring at even a worse situation.”

Some of the customers were so frustrated they refused to switch
off their phones while some picked their calls, despite caution from the bank
attendants.

“How do you expect me to switch off my phone? Do you know how
long I have been here? So I should not pick my calls? If you don’t want me to
pick my calls, then give me my money and let me go. It is only when you are
rendering your services efficiently that you can expect me to obey your rules,”
a customer told an official in anger.

First Bank, in some of its branches, could not carry out any
transactions for its customers till noon yesterday.

“The network was just restored a few minutes ago,” a bank
attendant at First Bank, Oba Akran branch, said, around 12.20 pm. “It has been
down since morning. We have not been able to make any payments or perform other
transactions,” she said, looking at the crowded hall.

According to her, there was no need heading for another branch.
“The truth is that it is everywhere; it’s affecting all our branches” she
added.

The bank’s hall was filled to capacity, despite the fact that
some customers were turning back, as soon as they sighted the queue. At the
GTBank, it was no different. At 12.30pm however, the banks had begun responding
to customers.

On Wednesday, GTB on Facebook apologised to its customers for
the downtime experienced with its challenges during the Easter holidays.

The bank had said, “We want to sincerely apologise for the
downtime experienced with our Internet Banking Service during the Easter holidays.
We recently migrated to our Superdome Servers, which will provide our e-Banking
Channels with a more robust, secure, stable & reliable platform.

“Over the next few days, you may notice some service disruptions
across certain branches and e-Banking Channels. This is also a result of
Internal Migrations and Platform Reboots. Please be rest assured that our other
e-Channels (ATM, Mobile & GTConnect) will continue to function throughout
this upgrade/ migration. Thank you for your understanding and know that we do
this because we want to serve you better,” the statement said.

The spokesperson for the First Bank, when contacted on phone,
said he was out of Lagos and could not speak on the problem.

Service breakdowns are not totally avoidable. It is not known
when the banks service breakdown would be fully addressed, but customers say
banks should devise a more effective way to address their internal challenges,
without having to put their customers through such extreme discomfort.

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Forex-dollar wins reprieve, seen vulnerable as Fed looms

03/05/2011 No comments

Forex-dollar wins reprieve, seen vulnerable as Fed looms

The dollar won a
reprieve on Monday after last week’s steep slide but traders said it
could head for a test of its all-time low against a basket of
currencies if the U.S. Federal Reserve takes a cautious stance towards
tightening later in the week.

In thin trade due
to Easter holidays in Australia and much of Europe, Japanese importer
bids for dollars were enough to boost the U.S. currency against the yen
and help it to erase earlier losses against other currencies.

Still, the
combination of upbeat global growth, signs of weaker U.S. growth, and
the spectre of dovish Fed policy is expected to support fund flows to
higher-yielding currencies such as the euro and the Australian dollar
from the U.S. currency, traders said.

“I doubt there’s
much dollar carry-trade out there but when market players are eager to
take risk, they tend to look to interest rate gaps on speculation that
the dollar could be used as a funding currency,” said Kimihiko Tomita,
the head of foreign exchange at State Street Capital Markets.

With dollar
interest rates seen taking a pivotal role in the market, players are
looking to a news conference by chairman, Ben Bernanke, on Wednesday
after the Central Bank’s two-day policy meeting – the first regularly
scheduled news briefing by a Fed chief in the Central Bank’s 97-year
history – to see how the Fed plans to seek an exit from its easy
monetary policy.

“It’s all up the
Fed and Bernanke’s stance at his news conference. The dollar could fall
further depending on U.S. interest rates,” said a trader at a Japanese
bank.

In Asian trade, the
Australian dollar rose to a fresh 29-year high of $1.0777, as the
prices of gold and commodities continue to rise, before slipping back
to $1.0735.

Gold hit a lifetime
high while silver surged 4 per cent on the U.S. futures market. The
euro/dollar rate gave up early gains to stand flat at $1.4568, but it
remained near a 16-month high of $1.4649 hit last week.

Against the yen,
the dollar ticked up 0.4 per cent to about 82.20 yen, helped by
expectations of Japanese investor buying, including by asset management
firms which tend to launch new investment trusts at the end of the
month.

U.S. policy

Traders also said
dollar selling by Japanese exporters had been limited since last
month’s earthquake, as supply chain disruptions were making it
difficult to export their products.

Japanese automakers
said on Monday their production in March fell more than 50 per cent
from a year earlier, with Toyota Motor, the world’s largest carmaker,
reporting a 62.7 per cent drop in output.

The dollar index,
which measures the currency’s value against six major currencies, rose
slightly to 74.07, but many traders say it could test a three-year low
of 73.735 hit last week. A break of that could open the way for a test
of the record low of 70.698 hit in 2008.

The dollar has been
falling due to perceptions that the United States is set to maintain an
easy monetary policy, even as most other major global economies, with
the exception of disaster-stricken Japan, look to tighter monetary
policy to rein in inflation.

Some analysts say
worries about rising U.S. debt and political bickering in Washington
over how to tackle the U.S. budget deficit are also undermining the
dollar, making it easier for speculators to sell the currency, although
there is no evidence that foreign investors are dumping their U.S.
assets.

As speculators have already piled up short dollar positions, some market players think the dollar could see a rebound soon.

Data from the U.S.
Commodity and Futures Trading Commission showed that speculators
remained overwhelmingly bearish on the dollar, even after trimming
their huge long positions in the euro and the Australian dollar in the
week to April 19.

Still, many traders
think that, for the dollar to rise, it will need a clear signal from
the Fed that the Central Bank will be on course to raise rates – a
scenario many traders are sceptical about.

The Fed is widely
expected to stick to completing its $600 billion asset purchase
programme in June but many market players think a backdrop of
softer-than-expected economic data, weak housing markets, and possible
government austerity measures to tackle the budget deficit all make it
more likely the Fed will keep its support for the recovery in place for
some time.

Many analysts
believe the U.S. Central Bank will hold the size of its balance sheet
steady by reinvesting maturing assets after June to avoid a passive
tightening – an issue that will likely be discussed at the April 26-27
meeting. Reuters

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Senate greeted by pile of bills

03/05/2011 No comments

Senate greeted by pile of bills

The Senate will today resume to a pile of significant bills that may suffer huge setbacks if not passed within the month.

The 2011
Appropriation Bill, the Petroleum Industry Bill and the Freedom of
information Bill are expected to top the agenda. However, bills like
the Anti Money Laundering bill and Anti Terrorism bill, which is
awaiting passage by the House of Reps and subsequent harmonisation, may
have to be carried over to the next session of the assembly.

According to the
spokesperson for the senate, Ayogu Eze, the senate will give top
priority to “working out the details of the 2011 budget and sending it
for presidential assent.”

The 2011 budget was passed shortly before the lawmakers went on the election break but its details have not been sorted.

Mr Eze added that the senate would also focus on the FOI bill which was also passed by both chambers before the election break.

“The FOI bill will equally be given accelerated treatment in harmonising the two versions passed by both chambers,” he said.

The bulky
Petroleum Industry Bill (PIB) which the senate dumped after a pressure
group called for its accelerated passages would also receive attention,
according Mr Eze.

He said the PIB
will equally receive urgent attention considering its overall short and
long term impact on the Nigerian economy.

The decision of
the senate to consider the PIB, Mr Eze said, is “considering too that
those campaigning for it (to be passed) have changed tactic from
blackmail to civilised messages which appeal to the conscience of all
concerned.

“The point we have
been trying to make is that no one loves Nigeria more than the
legislators. We are equally patriotic and committed to policies and
laws that will promote Nigeria’s growth for today and tomorrow,” the
senate spokesman added.

A couple of other
equally important bills may however not be passed in this session of
the senate. The Anti Money Laundering Bill and Anti Terrorism bill
which has been passed by senate may have to wait for a fresh start in
the incoming session of the National Assembly as it does not appear in
the priority list of the senate. Although it has been passed by the
senate, it has not been passed by the House of Reps. The senate,
however, still has a role to play in its final harmonization and
passage.

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Okorocha raises alarm over ruling party’s rigging plans

03/05/2011 No comments

Okorocha raises alarm over ruling party’s rigging plans

The governorship flag bearer of the All Progressives Grand
Alliance (APGA), in Imo State, Rochas Okorocha, has alleged that there are
plans to rig next Friday’s supplementary governorship election in the state.

Mr Okorocha who made the disclosure in a news briefing in
Owerri, the Imo State capital, hinged his allegations on video clips obtained
with spywares deployed into the field by his party.

In the recording which had vivid pictures of some government
officials addressing observers and another tearing up ballot papers voted
against the PDP in Nkwerre council area of the state, Mr Okorocha lamented the
inaction of the law enforcement agencies in the state.

The evidence

Another clip from Oguta council area showed where some hoodlums
held youth corps members hostage in a bush while thumb-printing of the ballot
papers went on.

Mr Okorocha who was flanked by Martin Agbaso, the zonal vice
chairman of APGA, Chris Ejike Uche and his deputy, Mr Jude Agbaso also
displayed fully thumb-printed fake ballot papers recovered last Sunday by
soldiers.

Lamenting the desperation to rig the Friday supplementary
election by the ruling Peoples Democratic Party (PDP), the APGA governorship
candidate, while noting his party’s preparedness for the election listed
conditions for their participation in the supplementary poll on Friday.

Mr Okorocha demanded that the Resident Electoral Commissioner
(REC) in the state, Selina Oko should be removed and Austin Okojie, one of the
four RECs deployed for the make-up election, dropped for his role in the
subversion of APGA’s mandate to govern Imo State in 2007.

He also demanded that no staff of the Federal University of
Technology, Owerri (FUTO) recruited as INEC adhoc staff should take part in the
collation of the Friday election result.

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NYSC shamed those who wanted to derail elections, says Jega

03/05/2011 No comments

NYSC shamed those who wanted to derail elections, says Jega

The Independent
National Electoral Commission (INEC) Chairman Attahiru Jega says the
inspiring leadership of the National Youth Service Corps (NYSC) had
shamed those he described as “unscrupulous persons” who wanted to
derail the April 2011 general elections.

Mr Jega made the remarks in a letter of appreciation, dated April 27, to Maharazu Tsiga, the NYSC director-general.

“It is clear that
but for the inspiring leadership of the patriotic men and women of the
corps, the designs by the unscrupulous persons to derail the elections,
by intimidating and scaring away the corps members, would have been
realised,” he stated.

The letter said
history would bear witness that the unyielding commitment to the
survival of the nation’s democracy inspired the corps members.

It added that the corps members defied reckless purveyors of violence to render selfless service as INEC ad hoc staff.

“It is, therefore,
beyond a shadow of doubt that Gen Tsiga, along with the entire staff
and membership of the NYSC, has demonstrated this virtue to the highest
degree.

“I am certain that
the history of our democracy will not be complete without a mention of
the laudable role you and your organisation have played,” the letter
further stated.

The INEC boss
expressed regret over the violence, which affected some corps members,
and expressed heartfelt condolences to those who lost loved ones to it.

The letter described them as “martyrs of our democratic aspiration as a country.”

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Retired primary school teacher defeats Bauchi speaker

03/05/2011 No comments

Retired primary school teacher defeats Bauchi speaker

The Speaker of the
Bauchi State House of Assembly, Abubakar Ahmed Faggo of the PDP, has
lost his re-election campaign to represent the Shira constituency in
the Bauchi State House of Assembly. He was defeated by a retired
primary school teacher, Awwal Hassan of the Congress for Progressive
Change (CPC).

This was contained
in a statement signed by the state administrative secretary of the
Independent National Electoral Commission in Bauchi, Aminu Adamu Bello,
which contained the list of successful candidates for the
constituencies in the state.

According to the
statement, the result of 27 out of the 31 state constituencies showed
that the PDP won 22 seats while the CPC opposition won five seats. Bye
elections will be conducted for the remaining four constituencies on
May 5. The cancelled gubernatorial elections in Ningi and Misau local
government areas due to irregularities affected the constituencies.

Speaking to NEXT,
the retired primary school teacher thanked God and his students and the
people of his constituency that came out en masse to vote for him, and
pledged to work hard in order to develop their constituency.

The PDP won in Pali, Duguri/Gwana, Kirfi, Zungur/Galambi, Dass,
Lere/Bula, Bogoro, Warji, Dambam/Dagauda/Jalam, Darazo, Sade, Ganjuwa
East, Ganjuwa West, Katagum, Sakwa, Jama’are, Itas Gadau, Disina,
Giade, Madara/Chinade, Udubo and Gamawa state constituencies. The CPC
won in Azare, Shira, Toro/Jama’a, Bauchi and Lame constituencies while
the bye elections will be held in Ningi, Burra, Chiroma and Hardawa
state constituencies.

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Medical doctor abducted in Benin

03/05/2011 No comments

Medical doctor abducted in Benin

The Edo State chapter of the Nigerian Medical Association (NMA)
yesterday announced the abduction of yet another of its members. According to
the association, Paul Oriaifo was on Sunday morning abducted by suspected
kidnappers in Ekpoma.

Just last week, a member of the association and former Permanent
Secretary, Edo State Ministry of Health, Momoh Daudu was kidnapped.

The NMA yesterday lamented the poor state of security in the
state just as it said security agencies in the state were not making use of
intelligence information available to curb crime.

The association recalled that the closure of banks in Edo
Central in the last three weeks over incessant robbery incidents had created
lots of hardship for the people in the area, as banks have refused to open for
business since the last two weeks due to almost daily occurrence of robbery. A
statement jointly signed by the state chairman of the association, Philip
Ugbodaga, its Secretary, Emmanuel Ighodaro and its Public Relations Officer,
Kennedy Alohan, called for an overhaul of the security apparatus in the state
for efficiency.

Unconditional release

“The NMA, Edo State branch is extremely concerned that
kidnapping is still a prevalent and thriving business in Nigeria. Despite the
often trumpeted resolve by both the state and federal government to tackle this
emerging threat to free movement and to humanity, very little is being done in
that regard. The inability to curb this menace is a failure of intelligence
gathering.

“While we join the rest of the world to celebrate the killing this morning
of Osama Bin Laden as a result of sound intelligence network, we recommend
undercover intelligence operations by the various security agencies to deal
with the problem of kidnapping. We have gotten to a breaking point. Medical
personnel are now unable to differentiate between abductors and genuine
patients making it difficult for doctors to undertake their humane duty to save
lives. If this problem is not curbed fast, the effect on society will be
devastating.”

The group stated further that “The abductors of Dr Paul Oriaifo are
demanding six million naira. Neither the NMA nor the family is prepared to
negotiate any payment of ransom for his release. We demand his unconditional
release and hereby charge the security agencies to do all that is necessary to
get him freed.”

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GENDER POINT: Signs of an abusive person

03/05/2011 No comments

GENDER POINT: Signs of an abusive person

Today, most women and men discuss issues of violence in other
people’s relationships without knowing or identifying similar traits within
their own bad relationships, let alone getting out of them. Violence in
whatever form, within or outside the home, has its implications on personal
development, and addressing violence in its earlier stages reduces its
re-occurrence.

However, the fact that not all people can identify violence at
an early stage is a problem. Interactions with women who survived violent
relationships have revealed that when their abuse started, most of them were
silent about it because they did not recognise or see the signs as something to
worry about.

Recognise the signs

As individuals, we need to check this list to be sure we are
safe from abusive relationships. If you are in a relationship where your
partner calls you names; insults you or talks continuously about your
weaknesses; does not trust you and acts envious or possessive all the time;
tries to isolate you from family or friends; monitors where you go, who you
call and whom you associate with; does not want you to work, controls your
finances or refuses to share money; punishes you by withholding affection;
expects you to ask permission; threatens to hurt you, the children, your family
or your pets; or humiliates you in any way, then you are in an abusive
relationship.

It is worse when your partner has ever: damaged property when
angry (thrown objects like bottles, punched walls, broken glasses); pushed,
slapped, bitten, kicked or choked you; abandoned you in a dangerous or
unfamiliar place; scared you by driving recklessly; used a weapon to threaten
or hurt you; forced you to leave your home; and locked you out. Similarly, you
can be sure you are in an abusive relationship if your partner has trapped you
in your home or kept you from leaving; stopped you from making calls to the
police or seeking medical attention; hurt your children; or used physical force
in sexual situations.

Take action

The list above is not exhaustive as there may be several other
signs not mentioned here. But the reality is that in whatever form it comes,
abuse is dangerous and a red alert to immediately seek help or intervention to
break the silence. Talking to someone about it does not mean you are weak. It
only means you are empowered, courageous and can take control of your own life,
which no one else owns but you. You are responsible for all the consequences
thereafter.

Beyond the pain that comes with abuse – psychologically, physically,
socially, and economically – it has its untold strain on the human resources
much needed for one’s development, because only a sound mind can make
meaningful contributions to any process.

As citizens of the world, as declared in the 1948 Universal Declaration of
Human Rights, protection and freedom from pain is a universal right and should
not be denied anyone under any circumstance. Therefore, now is the time to say
no to all forms of abusive relationships within the home, in offices, and any
other space – public, local and international.

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Jonathan places security agencies on full alert

03/05/2011 No comments

Jonathan places security agencies on full alert

President Goodluck
Jonathan has directed all security agencies in the country to remain on
full alert, especially in identified flashpoints across the country, to
thwart any further attempt to breach the peace of the country.

The President, who
is currently on a seven-day working retreat at the Obudu mountain
resort, also said he is determined to move Nigeria further along the
path of democratic consolidation in the next four years to build on the
gains of the 2011 general election.

Some states of the
federation, especially in the northern parts of the country, erupted
into violence after the presidential elections won by Mr Jonathan.

Although there is
no official figure for the number of casualties, it is believed that
hundreds of people were killed and properties worth millions of naira
must were destroyed in the riots.

States like Borno
and Kaduna have also witnessed frequent deadly detonation of bombs by
suspected members of the Boko Haram group, which had claimed
responsibility for some attacks on government officials in recent
months.

The spokesperson
for the President, Ima Niboro, said yesterday that the president
thanked all political stakeholders and Nigerians for the success of the
just concluded election and reiterated that he is “committed to working
with all stakeholders to address any observed weaknesses which persist
in the country’s electoral system”.

Mr. Jonathan has
also urged winners in the elections to be magnanimous in victory and to
commit themselves to good governance for all their constituents without
discrimination. He urged them not to engage their predecessors in
“unnecessary battles, which may turn out as counterproductive”.

He also sympathised
with those who lost elections and advised them to gallantly concede
defeat and congratulate the victors. He advised them to refrain from
taking laws into their own hands but to “take the legal route where
they feel dissatisfied with the outcome of the process”.

Appreciation to all

With the 2011
general elections all but concluded, except for the supplementary
elections scheduled to hold in parts of Imo State on Friday, Mr. Niboro
said the President thanks all Nigerians and friends of Nigeria who have
contributed to the delivery of the free, fair and credible elections
promised by his administration.

“He expressed appreciation to the Chairman, commissioners, permanent
and ad-hoc staff of the Independent National Electoral Commission
(INEC), especially members of the National Youth Service Corps (NYSC)
some of whom sadly lost their lives in patriotic service to the
country, the national security services, local and international
observer groups as well as millions of Nigerians who trooped out thrice
in the month of April to peacefully vote for leaders of their choice,”
Mr Niboro said.

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