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For banks, the lean years seem over

For banks, the lean years seem over

As more banks reel out their 2010 year end reports, industry watchers have observed that the sector has shown remarkable improvement and signs of quick recovery from the impact of the 2009 financial crisis. Most of their earnings are back in the green, although it has not been an entirely smooth ride.

Finance experts think investors should keep an eye out for low-hanging fruit as the 2010 bank’s balance sheet cleansing, an aftermath of the crisis, would place the banks on a clean pedestal and effectively put paid to the days of provisioning surprises, with the intervention of the Asset Management Corporation of Nigeria, AMCON.

The AMCON was set up last year to absorb bad bank loans by exchanging them for government-backed bonds. So far, N1.7 trillion (US$11.0 billion) bond has been issued since April.

It also announced that it had cleared all bad bank loans and was on course in its efforts to recapitalise lenders rescued by the US$4.0 billion bailout in 2009 by the end of the second quarter this year.

Fidelity Bank had earlier in the month released its 2010 year-end figures with a profit before tax of N8.6 billion. Reginald Ihejiahi, the MD/CEO of the bank, said he is pleased with the progress made by the bank in improving profit and operating performance of its business in the financial year.

The bank recorded a 61.45 per cent increase in gross earnings, from N34.7 billion in 2009 to N56 billion. Profit before Tax (PBT) also increased by 312 per cent from N2, 054 billion in 2009 to N8, 468 billion in 2010, while Profit after Tax (PAT) increased by 292 per cent from N1, 557 billion in 2009 to N6, 105 billion in 2010.

Deposits also increased by 13.41 per cent from N288 billion to N326 billion and declared a dividend of 14 kobo.

“Efforts to rework our funding structure to a more sustainable and efficient deposit mix is showing in strong positive growth in demand and savings deposits, and reduction in high cost deposits with a resultant improvement in Net Interest Margin (NIM). We expect this trend to provide the anchor for further improvement in our operating performance in 2011 as we seek increased market share,” Mr Ihejiahi said in a statement.

Looking into the books

Adesoji Solanke, banking analyst, Renaissance Capital, an investment bank, said “the bank’s earnings were below estimates mainly due to a margin pressure and much higher than expected provisioning charges in the fourth quarter.”

“2010 was still a clean-up year for Fidelity, but we note that given its relatively high Non Performing Loan (NPL) ratio, provision write-back potential is high for this post-AMCON, in our view. We like the cost focus and revival in loan growth, as well as its strong 53.2 per cent liquidity and 44.0 per cent capital adequacy ratios, which place it in good stead to witness above average NIM expansion and loan growth in 2011,” Mr Solanke said.

Afrinvest, a finance analysis firm, said the result looks decent relative to its prior year figures.

“Notably, we find that the bank’s performance in the fourth quarter was really poor, particularly from an earnings perspective. We are inclined to believe that the bank’s rather disappointing net earnings figure derives from its cost of risk, perhaps taking a much larger impairment for bad loans as against a potential write-back from loan recoveries.

“We also did not expect a significant increase in operating costs, given the cost containment measures employed by management following the onset of the banking reforms,” Afrinvest said.

On the other hand, Skye Bank’s gross earnings fell 36.1 per cent to N84.0 billion in its 2010 year-end figures, from the N131.5 billion reported for in 2009. The bank returned to profitability with pre and post-tax profits of N12.7 billion and N10.4 billion, having barely managed to break even in the preceding year.

Commenting on the results, Afrinvest said these are “decent results considering the fact that the prior year numbers was for a 15-month period. The bank’s gross earnings that were 2.5 per cent shy of our N86.1 billion target, while PBT and PAT fell 7.7 per cent and 6.8 per cent short of our N13.7 billion and N11.2 billion estimates respectively.”.

“While we have yet to speak with management regarding the finer details behind these figures, we however find this to be very much in line with our expectations. We had expected a progressive expansion in NIMs, given the reduction and subsequently low funding costs prevalent for most of 2010, to compensate for the expected drop in interest earnings,” the finacial firm added.

The firm says it would attribute the recovery in the bank’s net earnings to a much lower cost of risk, having taken substantial write-downs in 2009 as well as some potential write-backs from loan recoveries.

First Bank posted Gross Earnings of N230.6 billion, 18.9 per cent higher than the N194.0 billion posted for the period ended December 2009. The bank reported pre and post-tax profits of N43.2 billion and N33.4 billion, 16.4 per cent and 12.7 per cent lower than industry watchers expectation.

Efficiency challenges

Afrinvest expressed concerns over the possibility of First Bank experiencing efficiency challenges in 2010.

“Despite the improvement in bottom line numbers, the bank’s overall performance fell below our expectations. We reckon the bank has taken the much debated general provisioning of 1.0 per cent of performing loans (estimated at about N10.0 billion) as required by the Nigerian GAAP. This may have been responsible for this below-than expected performance,” the firm said.

“Overall, this performance falls short of our expectations and trails the average performance of Tier-1 banks (excluding UBA). With pre and post-tax margins of 18.7 per cent and 14.5 per cent respectively, First Bank’s profit margins are below the Tier-1 bank average of 25.4 per cent and 19.6 per cent. This suggests efficiency challenges within the bank” Afrinvest further said.

For the UBA, industry watchers said the bank’s report appears daunted with a higher cost profile on the back of its increased regional presence, which has impacted its profitability negatively.

The bank posted earnings of N185.2 billion, a 5.2 per cent decline from the N195.3 billion (annual figure) reported in 2009.

Finance experts also added that increased provisioning charge (exceptional item charge of 12.7 billion) greatly impaired the profitability of the bank.

“This performance clearly highlights the bank’s inability to leverage its size and presence in about 19 countries to translate scale to profits, in spite of the relative improvement in Nigerian banks’ operating environment, especially in the 4th quarter of 2010. This performance has further reinforced our view that the bank underperforms tier 1 peers without demonstrating capacity for improved operating efficiency,” Afrinvest said.

The bank’s profit before tax and exceptional items stood at N16, 541 billion in 2010, up from N13, 662 it reported in 2009 by 21 per cent. Profit after tax stood at N1, 254 billion in 2010 from N2, 375 billion in 2009.

The bank’s gross loans and advances were down by 1.3 per cent from the N636.8 billion reported for 2009 to N628.8 billion. Deposits grew at 1.8 per cent to N1.267 trillion. Net Assets were down 4.0 per cent from N186.8 to N179.4 billion while asset quality (NPL) also deteriorated during the period under review.

“Non performing loans worsened from 7.9 per cent in 2009 to 8.8 per cent, the highest within the tier 1 banking universe. This negatively impacted the bank’s profitability as provisioning charges were higher than expected. Overall, our short to medium term outlook on UBA remains downbeat,” Afrinvest said.

Emmanuel Nnorom, the bank’s executive director, finance, said, “But for the N12.7 billion exceptional items taken during the period, net profits would have been stronger. Of the N12.7 billion, N5.7 billion resulted from the loans sold to AMCON, while N7 billion represents special assets being written off since the last three financial periods arising from legacy Continental Trust Bank (CTB),” Mr Nmorom said.

RenCap says the figures show another massive clean-up year for UBA in 2010.

“As 2011 is expected to be another clean-up year, although to a lesser degree, full earnings and RoE recovery at UBA will be shifted into 2012, in our view. Nevertheless, the expected NIM uplift accompanied by generally not-excessive cost growth and 15 per cent loan growth should strengthen the bank’s operating profit in the coming year, we think,” he said.

The release of banks’ 2010 results season kicked off in late March. Zenith, GTB, and Access were the first three to release theirs to the public. Diamond, Stanbic IBTC, FCMB, and Eco Bank also followed suit.

The consensus is that in terms of asset quality, non performing loans did not do justice to the profits of some banks. The banks were meant to submit their reports to the Central Bank before 31st March and publication should be before 30th April. Analysts hope with this healthy report banks may have leapt out of the debts of the past.

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PERSONAL FINANCE: Are you prepared for retirement?

PERSONAL FINANCE: Are you prepared for retirement?

How would you like to spend your retirement years? Will your nest egg be able to provide the kind of lifestyle that you have become accustomed to and how much will it cost?

Sadly, many people end up impoverished in their later lives or are totally dependent on their children or other family members. Yet other retirees are redefining retirement as an exciting time to explore new interests. No longer the end of work life, it has become a new beginning, often the start of a new career, world travel, going back to school, starting a new business venture, spending more time with family, or engaging in high-impact philanthropic ventures that change lives.

Here are some issues to consider as you plan for your retirement.

How much money will you need?

Thanks to the Pensions Reform Act, 2004, most of us are aware of the importance of pensions and retirement planning. Pensions, while they are an important part of retirement income, will very rarely cover all your retirement needs if you wish to maintain a certain standard of living during your retirement years. Your retirement income should be supplemented with income from other personal savings and investments.

Everyone’s retirement goals are unique and a function of their own age, stage, and financial situation. As life spans get longer, it is not unusual nowadays to spend over 20 years in retirement, so you need to be sure that your financial resources can last as long as you do. If you were to retire at 60 and then lived for at least another 20 years, how much income would you need for each year of your retirement, and how much do you have to save now to generate that kind of income to afford the lifestyle you desire?

Your current income is a good starting point for calculating your retirement savings needs. Experts estimate that most people will need between 65 percent and 80 percent of current income to maintain their current lifestyle when they retire. Online retirement calculators are available at several websites including those of the Pension Fund Administrators. These are useful tools to help you to estimate how much you will need in retirement.

Start early

In your 20s and 30s, retirement seems a lifetime away, but it’s never too early to start planning for it right from your first job. Those who start saving for retirement in their 20s have a better chance of building a large nest egg and achieving sustained financial success.

Educate yourself

Financial security and knowledge are closely linked. It is important to have a broad understanding of the basic investment principles; how you save is just as important as how much you save. Educate yourself on the different savings options available and what might work for you.

How much risk can you afford to take?

Your investment portfolio should be tailored to reflect your age, the amount of money you have and will need, and your risk tolerance. Inflation and market volatility have forced investors to face the reality of their financial position. With the spectre of inflation always lurking, and the possibility of spending more than two decades in retirement, your investment earnings will have to keep pace in order for you to have any chance of maintaining your current standard of living.

The type of investments you make play an important role in how much you would have saved at retirement. A diversified portfolio of cash, bonds, stocks and real estate will help to protect you from investment risk. You don’t want all your retirement funds invested in high-risk investments; in spite of the higher yields this might generate, you need to balance risk and return in order to achieve your goals. The asset allocation will largely depend on your risk tolerance and how long you have until your retirement.

Health is wealth

The reality of declining health as we age should be addressed seriously in retirement planning. Even the most elaborate retirement savings and investment plans can be decimated if you find yourself with health challenges and without adequate health insurance in place. No matter how healthy you currently are, build a financial cushion that allows for unexpected expenses and do not ignore your health insurance.

Enjoy your retirement

After several years of hard work, your retirement years should be one of the most rewarding of life’s stages and an opportunity to fulfil the dreams that you finally have the time to pursue, free from routine constraints. Make saving for retirement a priority and start now.

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Youth corps revolt presents INEC with fresh headache

Youth corps revolt presents INEC with fresh headache

The change had been
swift. From an early apprehension that peaked following the
postponement of the National Assembly polls and its subsequent acclaim
as one of Africa’s best in years, according to foreign observers, the
2011 elections have gained rapidly rising reputation in just weeks.

Now, after two
polls that earned it praise, the exercise, in its final lap, faces the
prospect of losing the bulk of its workforce – the youth corps members
– who have threatened to boycott the governorship and state assembly
elections scheduled for Tuesday following last week’s riots in which
many of them were targeted in some northern states.

For most of last
week, the National Youth Service Corps (NYSC) and the Independent
National Electoral Commission (INEC) played down the possibility of the
withdrawal, and officials sought to de-emphasize its impact on the
local elections.

“The chairman has
said the commission is doing all it can to make sure, if there are
shortfall in manpower, they will be made up for,” said Kayode Idowu, a
spokesperson of the commission on Friday, a day after a televised press
conference where the chairman, Attahiru Jega, displayed similar
optimism.

The electoral body
maintained that besides Kaduna and Bauchi states, where elections have
been moved by two days for security concerns, it does not expect the
exercise to be marred by shortage of personnel in the other states
where there had been violence.

Earlier on
Thursday, Mr Jega himself, said the commission had trained more hands
than needed for the elections and would deploy the extra ad hoc staff
to fill in at locations without sufficient electoral officials. He said
while the commission would be hopeful about the participation of corps
members in the elections for the remaining states on Tuesday,
provisions were however made for alternative personnel.

“Our hope is that
many of them (corps members) will recognize what these people want to
achieve. They want to scuttle the effort that we have made in the past
elections,” he said in condemnation of the violence that followed the
outcome of the presidential election, dismissing reports that members
of the corps had decided to withdraw their services as electoral
officers.

NYSC officials too
have denied corps members were pulling out and said the situation would
be clearer after a tour of the affected states by the director general,
Mahara Tsiga.

As at Friday
evening, the deputy director, Public Affairs, Chinwe Ojukwu, told NEXT
by phone that a position was being expected from Mr Tsiga.

Beneath the public
façade however, officials speaking confidentially, say the speculated
boycott of the exercise by the corps members has spawned mounting
concerns within the leadership of the INEC and the NYSC.

“With what is going
on, we all hope things will be fine, but naturally they may not be the
same again as with the other elections,” a staff of the electoral body
said.

A Kaduna-based
group, the Civil Rights Congress (CRC), also on Friday, said the total
number of deaths has surpassed 200 while the wounded passed 500.

“In Kaduna alone, we have more than 20 deaths,” Shehu Sani, executive director of the group told NEXT by phone.

No specific figures
could be obtained of the actual number of corps members killed or
injured in the crisis, as authorities appear keen on keeping public
passion within control. The NYSC spokesperson said only Mr Tsiga, who
could not be reached Friday, can give the actual numbers, if at all
there was any. Rights groups such as CRC, said it is challenging to
ascertain which victim was a corps member and which was not.

Earlier reports say
four died in Bauchi State, which is one of the worst-hit states. In
Kano State, although deaths of corps members could not be confirmed,
serving members have narrated at least two incidents where rioters
attacked their lodges before they were rescued by armed soldiers.

Officials say there
are worries the impact of the attacks may transcend the northern region
where it originated and may be felt elsewhere, as anxious parents
dissuade their wards from taking a role in the remaining elections.

“Many people have
travelled and don’t plan to come back for the election,” said Nty Ben,
a serving member in Osun State. The state is reportedly calm, yet some
corps members are apprehensive about the final elections expected to be
more passionate and have left on the orders of their parents.

Much-praised youth

Accused of aiding
election rigging by their attackers, and coming after the Suleja
bombing the killed at least 10 of their colleagues, the recent violence
has been particularly hard on the youth corps members who have been
lavishly praised by foreign election observers.

After the
presidential election, the European Union said as electoral officers,
the corps members performed their duties with “courage and to the best
of their capacity.” The Commonwealth said they showed “dedication and
courage that helped deliver a transparent process, often in difficult
conditions. They are a source of pride and hope for Nigeria,” the group
said.

The National
Democratic Institute applauded the corps members for their “dedication
and neutrality” while the International Republican Institute commended
them for their “dedication and hard work.”

Despite the
assurances that all is well, nothing illustrates the electoral body’s
frustration with the development as Mr Jega’s remark that the
commission will understand if the horror-stricken corps members stay
off the exercise.

“Obviously people in that kind of situation should be afraid,” he
said. “If some of them are scared enough to stay away, we will
understand. If they don’t come out, we will understand.” Mr Jega said
while INEC feels their pains and sympathizes with the families
affected; it will “understand should they choose not to participate
again.”

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‘The House of Reps will not be business as usual’

‘The House of Reps will not be business as usual’

Femi Gbajabiamila is the current minority leader of the House of
Representatives. With the recent increase in the number of minority
parties in the house, Mr Gbajabiamila hopes for more qualitative
legislation.

Do you see yourself coming back as the minority leader?

In politics, you
don’t plan too far ahead because a lot of things can happen but all
things being equal, I should be coming back as the leader of my party
and invariably, the leader of other minority parties as well.

What are those things you would have change if the opposition had more numbers?

Rightly, PDP
(People’s Democratic Party) was like a super majority in the House,
with more than 260 members. So, it was difficult getting anything done.
There is a cliché in the House that, “You can have your say but we will
have our way.” I would love to see a situation where people will be
true to the oath they swore, to do the bidding of Nigerians and not the
wish of a party. With the new trend, I hope that minority parties will
unite because our biggest problem has been lack of cohesion. But if we
can come under one strong umbrella with one voice as opposition, we
will get a lot more done, especially in the area of budgeting because
the majority party, the PDP, must talk to us now.

How will the increase in the rank of the opposition affect the engagement among legislators?

First, the cliché
of ‘You can have your say but we will have our way’ will be a thing of
the past. Nothing will be rammed down our throats anymore and there
will be a lot more lobbying and confrontation. This eventually will
affect the quality of government’s policies and laws. The interest of a
particular party will no longer be supreme; there will be more robust
debate. It will be a House of many colours. Before, there was no rule
of engagement because our number is negligible and they can afford to
ride roughshod over us. It’s all PDP affair. But that will surely
change now. However, for that to change, the opposition must marry its
numbers with unity. If we still have more than one opposition, rather
than one opposition, the swell in number will not make any difference

But some legislators are new in the business; won’t their inexperience affect your work?

We all know that
being a good legislator takes years of training and experience. It is a
serious business. In advanced democracies, you see people who have been
legislators for more than twenty years. Legislation involves a lot of
intrigues and, unfortunately, we are going to suffer for that lack of
experience. However, that case is not peculiar to the opposition alone;
the PDP also has many new comers, who are equally inexperienced. So, it
means those of us with relatively longer experience have a big task of
carrying others along.

If you come
back as the minority leader, do you think you have the mien to unify
Action Congress of Nigeria (ACN) and Congress for Progressive Change
(CPC) legislators, now that the alliance talk has broken down?

First, the alliance
talk has not broken down. It may be a post-election alliance. But we
have been at this effort of having a united opposition and our seed is
beginning to grow. What we have done is to reshuffle the structure of
the opposition in a way that the ACN, which has the highest number of
the opposition members, did not take all the positions. Before, ANPP
(All Nigerian Peoples Party), which was the leading opposition party,
took three of the positions and gave one to ACN. I made sure that each
party is represented. This has paid off in that we now have better
understanding among ourselves and I hope we can continue the trend.

What, exactly, will be the agenda of the opposition members in the House?

I am going to be
pushing for issues that will ensure the growth of our democracy. The
first is the independence of the legislative arm of the government. We
know that gone are the days of ‘rubber stamping’ whatever comes from
the executive arm of government. I will be pushing vigorously for true
federalism where we will have a weaker centre and stronger states. We
have many legislators who do not understand that they do not represent
the federal government. We work at the federal level but we actually
represent our respective states. So, states should actually be
stronger. This will call for further constitutional amendments,
especially the exclusive legislative list. We should not have more than
10 items, at most, on that list. But we have 53 items. Many of our
problems will disappear if we substitute this unitary system of
government for true federalism. Federal government has no business
setting minimum wage for states, for example.

Recently, a
bill to increase VAT rate and reduce that of personal income tax was
mooted. Lagos stands to be the worst victim because it relies heavily
on PAYE, while the VAT it generates goes to the federal government.
What are your thoughts on this?

That is another
example of the many lapses that exist in our constitution. States
should be the one to raise taxes. But this issue is one of the issues
we will definitely take up. The most important thing is for members of
the House to hold the interest of their states foremost. That is
paramount. About minimum wage, where will the states get money to pay
if the federal government is collecting all the taxes? I think this
issue may end up being resolved by the judiciary.

The quality of
support staff for federal legislators has been reportedly poor. It is
said that fund meant to hiring quality staff end up in the pockets of
legislators.

Do you see this as a big issue that will eventually affect the quality of legislation the country enjoys?

Money meant for
legislative staff does not end up in legislators’ pocket. It is paid
directly to the staff by the National Assembly Service Commission. I
don’t pay a single member of my staff. But let me agree with you that
the quality of legislative staff needs to be seriously considered. In
the US, after which we modelled our democracy, if you are not from an
Ivy League university, your chances of working for a legislator are
very slim. So they have the best hands and they therefore get the best
results. In Nigeria, most of us end up employing people who have run
our campaigns for us and who do not even have an idea of legislative
business. So, there has to be a legislation that will standardise the
level and capacity of legislative staff. I don’t know why a legislator
cannot employ a lawyer or an accountant who will be well paid.

Will you be pushing for such a legislation?

Yes. It has to be
done either by legislation or regulation for us to have better output.
And I think there is a standard defined under the civil service rule.
May be an enforcement of that standard is what we need.

The Speaker, Dimeji Bankole, is not coming back to the House. What is your relationship with him?

He is a personal
friend and we will remain friends. He is a good man. He has been
magnanimous in defeat. And I think Nigerians appreciate that. He is
young and I am sure he will continue to be relevant to Nigeria’s
development.

What are you going to miss about him?

I have so many
colleagues that are not coming back, both from ACN and other parties. I
know I’m going to miss them but what exactly I will miss is what I
haven’t really thought about.

What is your assessment of the national assembly election?

It went well but I
won’t be one of those who will start rejoicing that it is perfect.
First, the standard has been set so low that any little improvement,
which is what we have now, becomes so big. But compared with what
obtains in advanced democracies, we are not yet there. A lot more has
to be done.

Opposition
parties in Lagos have alleged several irregularities said to be
perpetrated by the ACN. Will you say ACN also benefitted from our
imperfect electoral conduct?

It is a cultural
thing for Nigerians to cry foul where there is none. If you lose, you
are rigged out. If you allege, then bring the evidence. Camera phones
were allowed to monitor the election. I will be glad if they can
provide evidence.

There is a
new fear that some people who won election on ACN’s platform will
defect to PDP. Is there a structure or strategy to prevent that?

At the end of the
day, this is something that may resort to lawsuits. The fear is there.
We tried to prevent that during the last constitutional amendment by
proposing that cross-carpeting be banned outrightly. But the PDP argued
otherwise. They said everyone has freedom of association, which I don’t
think is an absolute freedom. But I think it is high time the people
woke up and began to use the power of recall, which they have under the
constitution.

What is
your reaction to the belief that Governor Fashola’s sterling
performance is a boost to the chances of other ACN contestants in Lagos?

Without taking away
anything from Fashola, who has done very well, I must say that there
were ACN elective office holders in Lagos before Fashola came on board.
It is not like another party was holding sway before Fashola came.

But the local councils have not received the same admiration that Fashola has got.

I have to agree
with you that the local governments’ structure is complex and
inefficient but that is not peculiar to Lagos alone. It may be a
constitutional issue or lack of fund, I don’t know. I think a local
government conference needs to be called so can they analyse their
problems and proffer solutions. But local governments must be up and
doing because they made my campaign very difficult. People do not know
the job of a legislator yet, so when I go for campaign, people complain
about their roads, gutters, etc. Those are not my job but how do I
explain that to them? So I have to accept the responsibility.

The issue of legislators’ allowances will not go away. Do you think it is deserving or should it be reduced?

First, let me say
again that there is no such thing as constituency allowance. And
journalists should know if they do their work. There was a day the
finance minister came to the floor of the House and one of my
colleagues asked the minister to clarify the issue of constituency
allowance in the presence of the media. The minister said he has heard
about it but that there is actually no such thing. I told my colleagues
that I was ready to bet my last kobo that no newspaper would carry such
vital information. The next day, I bought about 10 newspapers and none
carried it. Our allowances have been compared with those of legislators
in other climes. But I always say that I would rather be an American
legislator and keep all of my money than a Nigerian legislator who ends
up spending most of his earnings on constituents. American legislators
do not do poverty eradication programme. They do not sink boreholes,
construct roads, pay school fees, buy motorcycles or sewing machines.
Nigerian legislators do all of these. So, there is no basis for
comparison. Everybody in your constituency as a Nigerian legislator
comes to you for one problem or the other and you have to meet their
needs. On the other hand, everybody in the executive government also
has allowances, which is the running cost of their offices. We do not
regard such allowance as part of their take home pay but we do that for
legislators. So, when the CBN (Central Bank of Nigeria) governor said
the national assembly spends 25 percent of national budget, which is
totally wrong, we failed to ask where the remaining 75 percent goes. If
we truly want to stop the economy from bleeding, we have to look at all
arms of government and not single out the legislature.

But doesn’t the legislature have the oversight function of stopping the bleeding?

Well, we know where
the 75 percent is going but journalists will not look at issues
holistically. It is no secret. How do you oversee the 75 percent when
the 25 percent they are selling to you is even wrong? CBN’s budget,
which is just an agency out of so many agencies of the executive
government, is even more than the budget of the national assembly,
which is an arm of the government, by 100 percent. How much is the
allowance of the CBN governor? How much is his travel and hotel
allowance? We should look into all that.

But don’t you think the national assembly could have prevented this attack if it had been proactive in its oversight function?

We have saved so
much money for the country that is not even reported, money that could
have ended up in pockets of some political appointees of government.
So, if the motivation is to help the country rather than vilify a set
of people, we should look at everything holistically. You would be
shocked to know where the economy bleeds most.

What influence does Bola Tinubu have on you?

He is somebody I
have learnt a lot from and I continue to learn from the great man.
Fashola, who we all acclaim, has also learnt a lot from Tinubu. Don’t
forget he was Tinubu’s chief of staff.

People say that godfathers make overbearing demands.

I haven’t had that experience. A couple of times, he (Tinubu) has
made his position known about issues being discussed on the floor (of
the House). But, honestly, he doesn’t ram it down your neck. He just
states his own opinion. We look at issues and debate. Frankly, nine
times out of 10, he has a more compelling argument. He is a very
intelligent man. He was a legislator and a governor, so he is more
experienced and sees things from a better angle.

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The Muslim who risked all for his Christian neighbours

The Muslim who risked all for his Christian neighbours

As the rampaging
youth pursued the woman into the street, men dragged their wives and
children inside and locked their doors. The rioters finally caught up
with the screaming woman and began to beat her; they tore up her
clothes and pushed her to the ground. Then they raised her up again and
were dragging her off when a slightly built man in caftan and skull cap
approached, shouting at them to stop, his arms flailing. Men looked out
from inside their rooms in amazement.

“They said later
that they thought I was out of my mind, approaching these boys, all
drugged on something, carrying petrol and burning down buildings,” said
Adamu Bologi.

Mr. Bologi himself
had not thought of the consequences of his action. He dragged the woman
away from the boys and took her to a nearby mosque, hiding her by a
side entrance through which the Ladan usually enters. Of course, he
made sure she took off her shoes first.

When he came out,
he saw another harassed woman running with two children, stumbling
along the road. Her husband is the pastor of a church, the Conqueror’s
House, around the same area where the Christian Corpers Lodge and a
church were burnt last Monday in Minna.

Mr Bologi looked around him. There was no one else apart from the rioters in the street.

“It was suddenly
like midnight,” he said. “The whole place was so quiet, not even a
child could be heard, although it was just about 2pm. The world seemed
empty and these boys were in charge.”

He saw smoke from a
burning church behind the crying woman on the opposite street; he saw
some other miscreants approach; and he saw that soon she would run into
them. Mr Bologi ran towards her and took one of the children. He tried
to lead her to his house, but she was inconsolable.

“She kept screaming
about her husband, saying, ‘They are too many. They are beating him,
please help him before they kill him.’ She finally agreed to follow me
home after I promised to go for the pastor afterward.”

After he took her
home, where another victim he took there earlier was already settled,
watching a movie, he went back to check on the pastor but the place was
unapproachable. The boys were breaking windows, destroying the building
and stealing church equipment. How to approach such a scene?

Mr Bologi said the
pastor fought valiantly; there was blood on his hands where he kept
blocking the blows from the cutlass wielded by one of the boys as the
rest hit him with hockey sticks. The whole place was full of smoke.

“I was alone,” said Mr Bologi. “There was no way I could handle those boys. I had no stick, no knife, nothing.”

Suddenly, someone pointed at him, asking where the woman was and some in the gang began to spread around to look for her.

“So I went back to
look after my family and the woman. But when she saw me she started
screaming about her husband again, asking me if he was dead already,
begging me to help him. So I got out again.”

But by the time he
went back, the pastor was no longer there. The boys were still
screaming, still stealing, still vandalising but there was nothing he
could do. He went past the church searching for the pastor. The streets
were deserted save for the urchins, and he was about to return home
when he saw a man walking through some kind of haze.

“He had obviously
been looking for his family,” said Mr Bologi. “When I approached him,
he stood there with bandaged hands, still defiant. ‘Are you the pastor
of the burnt church?’ I asked. He said, ‘So what if I am?’ So I told
him his family was in my home and that I could take him to them.”

But that took a
while because Mr Bologi couldn’t just walk the bleeding pastor to his
home – they would be seen. So they devised a way to get to the house by
indirection, going sideways, like a crab’s walk.

“When the woman saw her husband, I have never seen such joy,” he said.

There was a police
barracks near the place, perhaps 300 metres away. Mr Bologi told the
pastor that soon the boys would come to look for him there and he won’t
be able to stop them, alone. He had to get them to the barracks; the
pastor’s family, and the woman he had ensconced in the mosque. On the
way, they heard sirens, a vehicle filled with policemen approached and
the motley crew of victims and their surrogate looked up in hope, but
the policemen were on their way to the governor’s residence nearby.

When Mr Bologi returned from the barracks, he saw that the boys have all gathered by his house.

“I thought, ‘well, this is it.’ The only thing standing between me and harm was my long dress,” he said.

They were not after him, however.

“There is a
building opposite where I stay and the whole people there are Ibos. The
boys were attacking the place. They were breaking the windows,
television, everything,” he said.

The example to follow

Earlier on, the people had met Mr Bologi to seek permission to move into his compound, but there were too many of them.

“I suggested they
all move to the police barracks and I followed them there to scout the
road. They had to wait at the junction while I checked if the boys were
around,” he said.

When he saw that
their rooms were under attack, Mr Bologi again pleaded with the boys to
move on, that there was no one there. They ignored him. By this time,
his brave efforts and constant imprecations had brought four other men
from their homes and they helped in urging the boys to desist.

“That was when this
man came running out of his room and they caught him. They began to
beat him up but we went closer. We were shouting, ‘don’t kill him,
don’t kill him.’ They said they would kill him unless he said, ‘Laila
la’ilallah.’

“The man tried, but
he couldn’t say the words. I told them this was unIslamic and they got
more angry, accusing me of conniving with unbelievers, threatening me.

“It was during this
back and forth that one of those wielding a machete went behind and hit
the man on the neck, leaving a wide gash as the man crumbled to the
floor…”

At this point in his narration, Mr Bologi’s voice crumbled, and he couldn’t go on. His eyes misted over.

“It is not right,”
he said. “It is not right to do that to another human being, and no
religion I know permits such a thing. No religion says that for no
reason you can machete an innocent man.”

I asked Mr Bologi what happened after this.

“I started crying,” he said.

“It was all too
much. I saw the blow and for a second, the collar-bones were all white
and then the blood started gushing. I became so weak.”

When he rallied, Mr
Bologi had attempted to push the man into the Mosque but the boys
stopped him. So he dragged the man to his house.

“There was all this
blood and my wife wasn’t finding it funny. She said, “What are you
doing? You bring some and you take them out and you go and bring
others?”

So why did Mr
Bologi, a young librarian at the state newspaper house, Newsline, a man
without any obvious physical strength stand up to over 30 vicious young
men, holding clubs and machetes?

“I kept remembering
the prophet, Mohammed,” he said. “He urged us to live our lives in such
a way that other people would come to admire our way of life and become
Muslims themselves. Is anyone going to become a Muslim with the kind of
violence shown by those boys?”

And why did the rioters not learn the same lesson?

“They are mostly
boys, you know, without families, without the kind of home training we
got. Many of them are twelve, fourteen and fifteen-year-olds.”

Afterward, Mr
Bologi and some other neighbours, mostly Muslims, joined hands to put
out the fires in the churches and to take all the injured to the
hospital. Mr. Bologi still looked exhausted the day after.

“I kept thinking of
the prophet,” he said. “One day some men came to kill him and failed.
As they fled, the prophet noticed that they were going in the direction
of his more militant supporters, Saidi na Ali and such. So, he told
them not to go that way, to avoid the route because they might get
themselves killed. He helped them make good their escape. That is my
example. That should be our example as Muslims.”

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Do you think it’s because they liked Florida?

Do you think it’s because they liked Florida?

House Republicans are seeking to abolish the
Federal Election Assistance Commission – as if the nation is fully
recovered from the hanging-chad nightmare of 2000. The 9-year-old
commission was created in bipartisan Congressional resolve to repair
the nation’s crazy quilt of tattered election standards and faltering
machinery.

The commission was charged with upgrading the
mechanics of voting by certifying electoral equipment, channelling
needed federal aid and guidance to states, and developing a national
mail-in voter registration system. After a slow start, it has made
progress as the 2012 elections loom. But there is still a lot more that
needs repairing.

Representative Gregg Harper, a Mississippi
Republican and the elections subcommittee chairman, nevertheless
insists that the commission “is no longer essential” and is leading the
drive to flat-line it for a savings of $18 million. Surreally, a
related Republican bill would transfer the agency’s mandate to the
Federal Election Commission – Washington’s nonpareil in agency
dysfunction. That would only invite partisan standoff and voting
scandal.

The Election Assistance Commission should have
been focused earlier on pushing all states to require a paper trail
with their post-chad electronic voting machines. But it has tested
voting systems for accuracy, and it oversees the special requirements
of military and disabled voters. It could make more progress if
turf-minded state officials were more open to its valuable studies on
better ballot design. Far from going out of the business, the
commission needs renewed support from Congress. For the sake of
credible elections, the House gambit should be rebuffed.

Editorial – New York Times

Published: April 21, 2011

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ARTICLE OF FAITH: The power of resurrection

ARTICLE OF FAITH: The power of resurrection

How can somebody die in the middle of a service of all places?

I was ministering
at a service at Christian Video Network, Lagos. Suddenly, I observed
that a lady in the second row was fidgety. She seemed very
uncomfortable. Then, she got up and rushed out.

Soon after, someone
came in, spoke to some women, who also rushed out. The service
continued but some thirty minutes later, someone came in again. This
time, she walked up to me and interrupted the service. “We seem to have
a crisis on our hands,” she said. “Mrs. Osanyinjobi had an asthma
attack. We’ve done all we can to help her. I am afraid the woman is
dead.”

Dead on arrival

Dead? I could not
believe it. How can somebody die in the middle of a service of all
places? What kind of embarrassment was this? The whole church
practically moved to the room where she was. There I met the ladies who
had apparently spent the last thirty minutes trying to revive her and
were now resigned to the inevitable.

I knelt down beside
this woman’s lifeless body and started to pray. “Father, she will not
die but live to declare the works of the Lord in the land of the
living. You are the Lord that heals. You took our infirmities and
carried away our sicknesses. By your stripes we are healed. You are the
Sun of righteousness. Arise with healing in your wings. You are the
balm of Gilead. Healing is the children’s bread.”

I went on and on
and on, praying every scripture I could think of. After a while, I
became exhausted. I did not know what else to say or to pray. I was
young in ministry, and could not handle this kind of crisis. So I
stopped praying and cried to the Lord in my heart. “Father,” I cried,
“I need help. I don’t even know what to pray any more. I don’t know
what other scriptures to claim.”

Jehovah-Shammah

And then something
happened. It was something magical; something glorious. The Lord spoke.
I heard him as clear as a bell. “Femi,” he said. “Pray in tongues.”

That solved the
problem. Immediately, I calmed down. I realised I was not alone. The
Lord was there. So I switched to praying in tongues. I prayed and
prayed and prayed. And just as suddenly, something happened again.

Out of the blue;
out of nowhere; Mrs. Osanyinjobi sneezed. Then she opened her eyes and
sat up. Then I helped her to stand up. And everybody went absolutely
crazy with joy.

We went back with
her to the service with dancing and singing and shouting and clapping.
She sat down calmly in a corner. But the Lord said to me: “Ask her to
dance.” So I asked Mrs. Bola Osanyinjobi to join in the dance. And to
the amazement of all, there was this woman, who had been lifeless for
hours, dancing with everybody else as though nothing whatsoever had
happened.

Talitha-kumi

Pamela Momah,
Deputy-Director of Library, Nigerian Institute of International
Affairs, Lagos had a stroke. She was rushed to Military Hospital,
Onikan, Lagos. When we went to see her, we were overjoyed it was mild.
But while still with her, another drama ensued.

A man had brought
his sick child for treatment, but he had no money. Therefore, the
nurses ignored him. Suddenly, the boy died, right there and then in his
arms. He let out a big cry. My colleague, Pastor Sandra Chikan, had
apparently been watching the drama for some time. “This man kept
pleading with the nurses,” she said. “But they refused to attend to
him. Look now, his son has died.”

Without thinking,
Sandra and I descended on the scene. I grabbed the dead child from the
arms of his wailing father, and we started to call upon the name of the
Lord. Sandra and I prayed fervently, confident that God is more than
able to raise the child from the dead.

After a while, God
honoured our faith and answered our prayer. Life flowed back into the
boy and he opened his eyes. Rejoicing, we handed him back to his
astonished father.

At last, the nurses
agreed to attend to him. They took him away, still grumbling that the
boy’s father could not afford the treatment.

About an hour
later, a male nurse came to us with a strange announcement. “The boy
has died again,” he said with a tone of finality. Then he stormed out
of the room, leaving us with nothing left to do than to console his
grieving father.

Jesus says: “I am
the resurrection and the life. He who believes in me, though he may
die, he shall live. And whoever lives and believes in me shall never
die” (Jn 11:25-26).

articleoffaith@234next.com

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IMAN: Our defining moments

IMAN: Our defining moments

“Do men think that
on their [mere] saying, ‘We have attained to faith’, they will be left
to themselves, and will not be put to a test? Yea, indeed, We did test
those who lived before them; and so, [too, shall be tested the people
now living: and] most certainly will God mark out those who prove
themselves true, and most certainly will He mark out those who are
lying” [Quran 29:2-3]

In Muslim rebuttals
to the usual charges of violence and intolerance, it is not uncommon to
find references to the Golden Age of Islam when the faith was a
civilizing catalyst that brought modernity, peace and prosperity to
many communities in near and far-flung corners of the globe. There
might be references to how the Prophet Muhammad (PBUH), entering the
city of his birth a victorious conqueror after long years of
persecution from Makkan society, issued a general amnesty and refused
to exact revenge from even some of the worst of those who had tormented
him.

Stories might be
told of how Muslim communities in North Africa and elsewhere provided
refuge and comfort to Jewish and other non-Muslim peoples fleeing
persecution and the Inquisition by Catholic Spain.

Nearer and nearer
our time though, as the fortunes of Islam and Muslims waned, so
apparently did our compassion – the examples of communal compassion and
exemplary displays of mercy and compassion seem to become more
sporadic, less common, and so, that much more fantastic in their
rarity. To be sure there is no dearth of individuals who happen to be
Muslims who are doing great work – as civil rights activists who
protect the vulnerable of every shade and stripe; as volunteers who
give their time and talent that others may benefit; as passionate
defenders of justice even against their own communities – these good
people exist everywhere and yet it seems to me that the more Muslims
find themselves on the losing end of just about every metric that
defines a successful community, the less tolerant and less forgiving we
as a people become.

In a way it is
perfectly understandable, this siege mentality of ours and our less
than perfect display of high moral rectitude. We’ve got a gigantic
boulder, not a mere chip, on our shoulders. Our belief system is being
threatened, our people demonized and the symbols which we hold dear are
being mocked, banned or burned all over the place. Sometimes it’s easy
to feel that we “just can’t get a break” so perhaps the rage born out
of impotent frustration is natural, as is the desire to lash out; to be
more concerned about the ends than the means we take to get there and
to let mercy and compassion slide way down the list of considerations
in our modus operandi.

Being good is easy when you’re winning

“… And what could
make thee conceive what it is, that steep uphill road? [It is] the
freeing of one’s neck [from the burden of sin], or the feeding, upon a
day of [one’s own] hunger of an orphan near of kin, or of a needy
[stranger] lying in the dust –” [Quran 90:12-16]

It is all too easy
to be good Muslims when things are going are way; to be magnanimous in
victory, le-nient and tolerant when we are at the top of the world. The
real, true measure of our eeman though, is how tolerant or
compassionate or just we are, especially when we’re on the losing team.

This is our duty as
Muslims, part of journey along the “steep uphill road” that we must all
trod as Believers. It’s not supposed to be easy. The Quran likens it to
feeding a needy soul – whether known or a stranger – at a time of one’s
own hunger. Allah makes it clear that the battle to be good, to do
right, to be merciful is not a factor of how “great” things are going
for us. These values are not to be displayed at our convenience or on a
whim, at a time or place of our choosing.

Our defining moments as Muslims become not how we act in victory,
but how well we allow ourselves to be guided by Islamic ethical ideals
when things don’t go the way we hope, expect or want them to.

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KINGDOM KEYS: The day of the Lord (Part 15)

KINGDOM KEYS: The day of the Lord (Part 15)

In
the past few weeks we have established the significance of the heavenly
signs by explaining that in Genesis 1 it is stated that the celestial
signs were designed to show signs, tokens and omens of divine
appointments between God and man and we said that Jesus indicated that
at the end of the present age there will be signs in the heavens i.e.
the sun, moon and the stars (Luke 21:25-26), therefore these signs are
vital to understanding the times we live in and what actions we should
take.

We
explained from Revelation 12 about the celestial signs pointing to the
Birth of the sons of God and the emergence of Kingdom Ministries
analysing the signs observed as a celestial conjunction between the
sun, moon and the star-sign called Virgo between 1996 and 2000 AD.

We
explained that these Kingdom ministries are actually the beginning of
the manifestation of the sons of God who are teaching the nations and
the body of Christ about the life of God which will soon be harvested
in the church with corresponding manifestations of divine power and
glory.

Wrestling down the dragon-serpent (Revelation 12): 2012 AD

“A
great and wondrous sign appeared in heaven: a woman clothed with the
sun, with the moon under her feet and a crown of twelve stars on her
head. She was pregnant and cried out in pain as she was about to give
birth. … She gave birth to a son, a male child, who will rule all the
nations with an iron scepter. And her child was snatched up to God and
to his throne…. And there was war in heaven: Michael and his angels
fought against the dragon; and the dragon fought and his angels, and
prevailed not; neither was their place found any more in heaven. And
the great dragon was cast out, that old serpent, called the Devil, and
Satan, which deceiveth the whole world: he was cast out into the earth,
and his angels were cast out with him. And I heard a loud voice saying
in heaven, now is come salvation, and strength, and the kingdom of our
God, and the power of his Christ: for the accuser of our brethren is
cast down, which accused them before our God day and night”. Revelation
12:1-2, 5, 7-10 KJV

The
sons of God called the royal priesthood of Melchizedek are now maturing
and in the appointed time will attain to the measure of the stature of
the fullness of Christ (Ephesians 4).

Then
they will be caught up to the throne of God as seen by John in
revelation 12, then the Sons of God will be given authority and Power
in order to influence events that will bring the Kingdom of God into
manifestation.

This
will lead to the overthrow of the present evil celestial order of the
dragon or satan and will lead to the establishment of the Kingdom of
God on Earth. This is what John saw as there being war in the
heavenlies and Michael and his angels were in warfare against satan and
his angels and then the devil was cast down to the earth.

The
signs indicating that the time for the overthrow of the satanic order
and the dawning of the Day of The Lord will become evident by the end
of 2012 as a celestial conjunction involving the constellation called
OPHIUCUS (which is between the star signs Scorpio and Sagittarius) and
the sun.

OPHIUCUS
is a Greek word which means the serpent holder the constellation is
given this name because the sign shows a man wrestling with a massive
snake and at the same time with one foot on a scorpion. This is
represents the sons of God that have been given power to overcome the
powers of satan symbolised by serpents and scorpions.

OPHIUCUS
is located at the centre of the Milky Way galaxy and when the sun moves
into position to form an alignment with OPHIUCUS, it will be a sign
that the present age is coming to an end.

The
timing of this alignment being 2012 is one of the reasons that a lot of
films and research is being done about 2012. But it is not the end of
the world as some are crying. Rather it is going to be a signal year
for the church of the Lord Jesus to begin preparing for great upheavals
because of the cosmic conflicts that are coming between the Kingdom of
God and the Kingdom of Darkness and we can already see signs in this
year portending the coming of these events which will bring severe
judgements to the Earth and the heavens in the Day of the Lord.

keysofthekingdom@234next.com

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OPINION: Lord of the mind

OPINION: Lord of the mind

Recently, Catherine
Zeta Jones hit the headlines. This time, not for Oscar winning awards
or for her husband Michael Douglas’ brave fight against cancer. Neither
was it for her stunning Welsh looks or her perfect family. Ms Zeta
Jones had a secret. She was a bipolar disease sufferer.

Bipolar disease, or
manic depression, is a mental illness characterised by depression and
outbursts of mania. Like many mental illnesses, I can’t imagine this as
a nice addition to an otherwise so-called perfect life.

Many have applauded
the bravery of Ms Zeta Jones in talking openly about mental illness.
Mental illness is not exactly dinner party language. “Hey, by the way,
do you know I see a shrink twice a week?”

Mental illness
carries a stigma. Mental illness carries a shame tag. Employers
discriminate, friends lose patience. Families just want you to pull
yourself together. But why so much shame?

Rarely does anyone
laugh at a person with a physical condition. Are we guilty of seeing
such as heroic or brave? Are those who therefore suffer from mental
illness perceived as weaklings and wimps? Less human even?

Jesus sees no
difference between physical or mental illness. All sicknesses are
manifestations of the works of the devil. And Jesus came to destroy
every last one of them. And thank God He did. Because through Him, we
have a hope and a future.

My husband, Eze,
was diagnosed with psychosis for 18 long years. That beats the record
of the woman with the issue of blood! He did the hospitals, the
medications. Yes, he coped with the stigmas, the full works. All
through the years, he sought the end to the torture. Like the next
person.

Thank God that the
Resurrection Power of Jesus, that same power that raised up Jesus from
the dead, is still available in us today. I met my husband in the 14th
year of his mental illness story. The next four years were a test of
faith for both of us. Faith in the healing power and goodness of God.
Thank God, God’s word never lies. Thank God that the same Word that
cures diabetes cures psychosis. Thank God that the same Jesus that
loved a blind Bartimaeus is the same God that loves Eze.

Jesus is the same
yesterday, today and tomorrow. Celebrities may encourage us to seek
help for mental illness. They may even begin to glamorise the whole
mental health thing. It may become trendy to be taking a happy pill or
to be seen zooming in and out of rehab, or boasting of having sleeping
sessions on the psychiatrist couch. But, God is not new in any of this
business. I like God’s style, however. He offers a permanent solution!

The woman with the
issue of blood likewise had a terrible condition that society scorned.
Thank God she stepped out one destined day to meet her Healer. No
matter the stigmas you may face now due to mental illness or whatever
shame the devil has tried to bring your way, you can step out. You can
rise above the shame and stigma. And take your healing. What does it
matter what society has labelled you? God has another label for you. He
calls you ‘My son’ or ‘My daughter’. Yes, Jesus called the woman with
the issue of blood, ‘daughter’. He wanted her to know that she was now
restored, not only in her body, but into society.

Well, my husband‘s
story had a very happy ending. Who said ‘And they lived happily after’
only happened in fairy tales? Life in Christ has a guaranteed success
ending. Faith works.

In cutting a long
story short, my husband appropriated his healing and ended 18 years of
mental illness, medication, mental hospitals and…shame. The life he
lives today is more glorious than before it all happened.

As we celebrate
Easter this weekend, let us remember that Jesus died for every one of
us. Yes, He died for the scourge of society. He went to hell. Destroyed
the works of the enemy. He made a shameful spectacle of the devil so
that people like my husband can take off their cloaks of shame. Imagine
the devil’s own stigma and shame that day in front of his employees!
Jesus rose from the dead, ascended and sat at the right hand of the
Father. Sat at the seat of authority. And where He is seated, we, as
Christians are seated too.

And that seat has no shame or stigma!

(Zoe A. Onah is the
author of Defying the Odds: One man’s struggle and victory over mental
illness and his wife whose trust in God never failed)

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