Archive for nigeriang

Politics affects Nigeria’s emergency response

Politics affects Nigeria’s emergency response

In the last one
week, there has been two oil spills in Qua Iboe, Akwa Ibom state; and
three oil spills in Bayelsa State. In both cases the federal government
has not moved to remedy the situation.

However, yesterday
in Abuja, far away from the spills, key players in the emergency
management sector in Nigeria held a conference to access the access
level of preparedness of the government to handle such emergencies. The
general consensus showed that they were not satisfied with their
performances, but they all blamed it on either lack of funds or
political will on the part of the government to properly handle
emergency situations. Participants at the conference, which was
organised by the senate committee on environment, called for a greater
political will and more funding by the federal government to emergency
management sector.

“We haven’t got a
plan yet,” the senate president, David Mark, said while declaring the
conference open. He added that the country currently have no plan for
emergency management due to lack of political will by the government.
He cited the long standing oil spillage and soil degradation in the
Niger Delta as examples. “We have all that it takes to handle
environmental problems but we do not have the will power,” he said. “It
is not enough to sign agreements and be signatory to international
conventions, but we need to start see how they can be translated into
practical realities. I think all the stakeholders need to come together
with a working plan that will address the problems of environment.”

However, he
expressed concern over series of seminars and conferences organized in
the country without meaningful results and saying it was time for
action and less of the speeches in conferences. “The issue here today
is when something suddenly goes wrong,” he said. “We must seriously
address how to coordinate activities of the response agencies to meet
the emergencies.”

Dire consequences

Grace Bent (PDP
Adamawa state), chairperson of the organising committee added that
developing countries like Nigeria suffer immensely from disaster and
uncontrolled emergencies

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Women protest assault on female Rep

Women protest assault on female Rep

More than a
thousand women yesterday stormed the National Assembly to call for the
reinstatement of the female federal lawmaker who was physically
attacked during last week’s fighting at the House of Representatives.

The women, who
staged a protest at the Assembly, condemned the treatment of Doris
Uboh, the representative of Ika federal constituency of Delta State,
who was roughened up last Tuesday by her male colleagues and guards
during a violent session where lawmakers openly jabbed each other and
exchanged diatribes.

Ms. Uboh and 10
other members of a House group, nicknamed Progressives, were attacked
and later suspended from the chamber for leading calls for the removal
of the speaker, Dimeji Bankole, on allegations of corruption.

In a bizarre
episode that clearly discountenanced the touchy question of gender
violence and discrimination, she was dragged out of the chamber by a
number of male colleagues and guards, ripping some of her wears in the
process. She was later hospitalised due to an ear injury she sustained
in the incident.

The women group,
comprising of market women and groups from the Ika constituency,
flooded a part of the National Assembly yesterday, dressed in multi
coloured wears that bore inscriptions denouncing the violence and
calling for Mr. Bankole’s probe.

“Bankole, what
happened to the N9bn capital vote,” one T-shirt read, while another
said “EFCC must probe Bankole!” The calls re-echoed the demands of the
‘progressive’ group of lawmakers in the chamber, which is led by Dino
Melaye and received the support of Ms. Uboh, the only female member of
the chamber to openly do so.

The group canvassed
for two weeks, accusing Mr. Bankole of misusing the House 2009 capital
vote of N9 billion and asking for his removal.

At the chamber’s
resumption, where the issue was to be discussed officially, members of
the group were physically attacked by members loyal to the speaker, and
were later suspended for the rest of the year.

“For one year, it
means there will be no one to represent Ika in the House of Reps,” said
Nwadimeje John, who led a delegation of supporters from Delta State.
“We are asking the National Assembly to rescind that decision.”

Reversal of suspension

Members of the
Abuja Market Women Association, who led the protest and were barred
from the main complex of the National Assembly, asked for more than a
reversal of the suspension order.

“We want to see
Dimeji Bankole, if we cannot see him, let us see (Senate President)
David Mark. We want to talk with them,” said Felicia Sanni, the group’s
president general.

The group condemned
the violent acts that led to Ms. Uboh being hospitalised, asked for her
re-instatement, and also demanded investigations into the allegations
raised by the Rep group.

“The entire
Nigerian women were ashamed and surprised that this type of treatment
was meted on a woman by her male colleagues,” Mrs. Sanni said.

For hours, they remained and were stopped from gaining access to the main Assembly complex.

The chairperson, House committee on Women Affairs, Binta Garba, told
journalists later she was “advised” not to receive the protesting
women, and said the House has not been served any letter of the protest.

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Reps won’t probe N10b independence celebrations funds

Reps won’t probe N10b independence celebrations funds

A move by some
lawmakers at the House of Representatives to investigate the alleged
unauthorized release of fund from the N10 billion earmarked by the
Presidency to celebrate the 50th independence anniversary of the
country, was defeated yesterday.

However, President
Goodluck Jonathan’s request for extra budget of N639.8 billion scaled
second reading in the House. House minority leader, Mohammed Ali Ndume,
had, while raising a point of order, asked his colleagues to probe the
controversial release of funds by the executive arm to celebrate the
nation’s independence anniversary without the approval of the National
Assembly. Mr Ndume, who relied on Order 8 (4) of the House Standing
Rules, argued that the privileges of the lawmakers had been breached
collectively because the federal government has started spending part
of the N10 billion earmarked for the event. He demanded for an ad-hoc
committee to halt what he called “a step towards unconstitutionality.”
When Speaker Dimeji Bankole, who appeared uncomfortable with the point
of order, put the question whether it should be considered or not,
members roundly rejected.

Moving on

The lower
legislative chamber also read for the second time the Supplementary
Appropriation Bill forwarded to it by Mr Jonathan and asked its
Committees on Appropriation and Finance to expedite action on the bill
and report back for final consideration tomorrow (Thursday). Mr
Jonathan had proposed a supplementary budget of N639.8 billion and a
request for the amendment of the N4.6086 billion 2010 Budget to address
shortfalls in the projected revenue and approved aggregate expenditure.
The proposal, he said, will cater for the recently announced civil
servants’ wage increase and the forthcoming 50th anniversary
celebration of Nigeria’s independence.

Development fund Of
the N639, 824, 478, 183 proposed, N507, 125, 967, 248 is for additional
recurrent (non-debt) expenditure while the balance of N132, 698, 510,
935 is for contribution to the Development Fund for additional capital
expenditure for the year ending 31st December, 2010.

The sum of N287, 324, 427, 248 is to take care of the recent
increment in the wages of civil servants with N187.195 billion for core
civil servants; N61.641 billion for wage increase for universities;
N22.933 billion for polytechnics, N28.247 billion for Colleges of
Education; N74.592 billion for medical professionals; and N12.714
billion is earmarked for payment of two months arrears to the Academic
Staff Union of Universities (ASUU).

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Senate disagrees over budget reduction

Senate disagrees over budget reduction

An attempt by the
senate to debate a request from President Goodluck Jonathan for a
downward review of the 2010 budget suffered a glitch yesterday as the
senators could not debate the bill over disagreement on its content.

The senate, on
Tuesday failed to deliberate on both the budget cut and the
accompanying supplementary budget request due to some concerns on the
bill which could not be resolved before the plenary. Deputy senate
leader, Victor Ndoma-Egba, who made the withdrawal request before the
senate, said the bills had “some concerns” which are yet to be
resolved. He, however, did not say what the concerns were. But sources
within the senate said they were not yet fully satisfied with the
planned deductions from some affected sectors. Mr Jonathan had, earlier
this month, urged the National Assembly to legalize a downward review
of the 2010 budget in the face of dwindling government revenue.
Discussions on the proposals may, however, continue today.

Slashing federal spending

The budget review
will slash federal expenditure and reduce the oil price benchmark by at
least $10. Part of the president’s recommendation to the lawmakers is
the reduction of the oil benchmark price, initially increased by the
lawmakers to $67, back to its original $57 per barrel. In a letter to
the lawmakers, dated May 29, 2010, Mr. Jonathan affirmed his earlier
position that the N4.6086 billion budget which he signed into law in
April 2010 was no longer feasible in the light of current economic
realities of the nation.

“Recent revenue
developments indicate significant shortfalls in both oil and non-oil
revenue, which may well continue for the rest of the fiscal year, with
adverse implications for the financing of the budget,” Mr Jonathan said
in the letter. “Given the recent drop in international oil prices from
the over $80 per barrel to under $70 per barrel, it is prudent to
revise the oil benchmark price to a more realistic level.” However, the
letter sent by Mr. Jonathan refused to name his preferred figures for
either the oil price or the total reduction in the budget. He, however,
is said to have called for a total reduction of 40% in the budget.

Supplementary bill

The president also
requested for fresh appropriation for “critical expenditure heads that
were either inadvertently omitted or under provisioned for.”
Accompanying the 2010 budget cut proposal is an additional
supplementary budget proposal to authorize the executive to access some
N639.8 billion from the Consolidated Revenue Fund. The bulk of the
supplementary budget, about N507 billion, is for recurrent expenditure
while the balance of N132.6 billion is for contribution to the
Development Fund for additional capital expenditure.

A large chunk of the N507 billion set aside for the recurrent
expenditure will be shared amongst the office of the Secretary to the
Government of the Federation, Foreign Affairs Ministry, Information and
Communication Ministry, and the Ministry of Women Affairs to be used
for Nigeria at 50 celebration in October. The balance is intended to
apply to outstanding allowances of various government agencies.

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CAN wants stringent punishment for kidnappers

CAN wants stringent punishment for kidnappers

Kano State Chapter
of the Christian Association of Nigeria, (CAN) has called on the
National Assembly to enact a stringent law that will impose heavy
punishment on convicted kidnappers in the country.

The state chapter
chairman, Ransom Sunday Bello, made this known while speaking to
newsmen in Kano yesterday on the increase of kidnapping and violent
crimes in the country. Mr. Bello said the association condemns in its
totality the threat and fear of people’s lives across the country. He
called on all Christians in the country, particularly those residents
in Kano to pray and fast for three days, beginning from today
(Wednesday) to Friday, in order to earnestly seek God’s intervention.
He described kidnapping as an evil act, said the Holy Bible totally
condemned it, while quoting from the Holy book…. “He who kidnaps a
man and sells him or if he is found in his arms, shall surely be put to
death.” “We urged lawmakers from the National Assembly to urgently
provide appropriate legislation, so as to nip the evil in the bud,
stressing that Nigerians now live in fear and threat to their peace,”
he said.

Kidnapping spree

The religious
leader lamented the spate of kidnapping in the country, stressing that
life is no longer sacrosanct where men, women, parents, relations and
children are now being kidnapped for ransom and this criminal act
should not be allowed to destabilize the peace in the state. He called
on the federal and state governments, as well as law enforcement
agencies to rise swiftly to this challenge by putting to an end this
evil, and also fish out the perpetrators of the crime, so that justice
can prevail.

The association also called on religious leaders in the country to
preach against this menace, as well as condemn the evil ace, so that
the public and the government can step up efforts to eradicate the
rampant cases of kidnapping. Mr. Bello therefore appealed to members of
the public with useful information on kidnappers and any other criminal
activity to furnish the police and other security agencies, so that the
state of insecurity in the country can be controlled. The association
commended the Kano State governor, Ibrahim Shekarau for his efforts in
sustaining relative peace in the state.

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Police arrest governorship aspirant’s supporters

Police arrest governorship aspirant’s supporters

Police in Uyo, Akwa
Ibom State, yesterday, arrested scores of youth who had staged a march
in support of a governorship aspirant accused recently by the state
government of murder.

Truckloads of
security personnel disrupted a protest organised by the youth group and
sealed off the campaign office of James Akpanudoedehe, a former
minister of the Federal Capital Territory, who now seeks the state
governorship seat, arresting at least 30 of the men in the process.

The state police
commissioner, Walter Rugbere, told journalists the men will be charged
to court Wednesday for failing to secure permission for the procession,
and constituting “public nuisance.”

Mr. Akpanudoedehe
was arrested last week after the state government accused him of having
a role in the murder of a prominent politician who was gunned down in
the state a forthnight ago.

His arrest heightened tension in a state already fraught with rampant cases of kidnapping, murders, and overall insecurity.

The opposition
blamed the state governor, Godswill Akpabio, of running a highhanded
administration that brooks no dissent. But the state government had
always disputed this.

“By laying the
blame for Inyang’s murder on the opposition, even ahead of police
investigation, the state government is employing scare tactics and
wants to be the judge in its own case,” said Mr. Akpanudoedehe, days
after Paul Inyang, top PDP official, was shot dead while worshiping in
church.

Mr. Akpanudoedehe,
former minister, who is now seeking to become the state’s next
governor, said the administration’s policies have become more
intimidating, as more persons announced their decision to challenge the
re-election of the incumbent governor, Mr. Akpabio.

Inciting messages

The police said
yesterday’s arrest was to maintain peace that was threatened by
“inciting messages” displayed on the placards of the protesters, and
the harassment of motorists.

But reports from
witnesses said the protest by Mr. Akpanudoedehe’s supporters was
peaceful, and did not engage in forceful behavior such as harassment of
motorists, as claimed by the police.

The youths
reportedly converged as early as 6 a.m, marched through some of the
major streets in the capital city, including Oron Road, Ikot Ekpene
Road, Iboko Street, NEPA Line, and Abak Road.

They were later
stopped by a detachment of over 100 policemen deployed from the Police
Headquarters, Ikot Akpan Abia, who arrived in two separate batches.

While one batch
reportedly pursued the demonstrators along the streets as they were
making their way back to the former minister’s campaign office, the
other batch was stationed outside the office.

The police admitted they shot several canisters of tear gas to help disperse the youth.

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Bank shareholders are not smiling yet

Bank
shareholders are not smiling
yet

Nearly a year after
the bank reforms initiated by the Central Bank, some banks shareholders
are still lamenting, saying they are yet to reap the benefits of their
investments.

The share prices of
bank stocks at the Nigerian Stock Exchange (NSE) have depreciated in
the past 10 months, leaving most investors broke.

Some investors
believe the journey ahead for the banking sector will not be any rosy,
while others are of the view that the recent progress being made on the
establishment of the Asset Management Company of Nigerian (AMCON) will
soon ease the ‘survival struggle’ in the industry.

Bola Oke, a finance
analyst at Wealth Zone Limited, an investment firm, said the current
banks performance show that they are bouncing back to profitability.
“Havoc has been done in these banks. The present bank managers are just
turnaround managers, though we hear some of them have started spending
unnecessarily.”

However, Ms. Oke
said banks’ inability to declare good dividends and bonuses is not
making investors happy. “We (shareholders) cannot be happy since our
expectations were not met, even after the bank reforms. But we just
have to give the banks some time to get their foot back on the ground,”
she said.

Looking forward

Egbo Amaechi, an
executive member of the Shareholders Association of Nigeria, said all
indicators show that the banking sector is still struggling to recover.

“So far, progress
has been made. Remember that this time last year, financial results of
banks, like Oceanic and Intercontinental, that were overdue could not
be presented at the floor of the Nigerian Stock Exchange. Today, banks
are posting results, even when they are not encouraging,” Mr. Amaechi
said.

He said the success of the Asset Management Company will further boost the future performance of the banking sector.

Insolvency

Last week, Oceanic
Bank International, one of the rescued banks re-presented its financial
results to the NSE. The bank, however, could not meet the bonus of one
for 10 earlier promised its shareholders.

Ndi
Okereke-Onyiuke, the director general of the NSE, said the bonus cannot
be paid to the investors because “the bank is technically insolvent,”
adding that “there was no money in the bank’s reserve and there was no
money in the shareholders fund.”

After recording
loss after tax of N234.692 billion for the 15 months ended 31 December,
2008, and loss after tax of N89.007 billion for the year ended 31
December 2009, Oceanic Bank, for the first quarter ended 31 March
posted a profit after tax of N1.676 billion.

More results

In a related
development, Spring Bank and Afribank also posted profits after tax in
their first quarter results, after recording huge losses in their
previous financial results.

Spring Bank audited
result for the eight months ended 31 December 2009 shows a loss after
tax of N24.164 billion, compared with N10.228 billion during the 12
months period ended April 2009. However, the bank unaudited result for
the first quarter ended 31st March 2010 shows profit after tax of
N613.41 million, compared with loss after tax of N1.754 billion in 2008.

Afribank Nigeria audited result for the nine months ended 31
December 2009 shows loss after tax of N230.140 billion, compared with
N158.473 billion during the 12 months period ended March 2009. The bank
unaudited result for the first quarter ended 31 March 2010, shows
profit after tax of N1.919 billion, compared with loss after tax of
N230.140 billion during the nine months ended December 2009.

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‘Corporate bond market needs reforms’

‘Corporate bond market needs reforms’

The Central Bank said on Monday that reforms were necessary to improve the state of Nigeria’s corporate debt market.

Sanusi Lamido
Sanusi, the Central Bank Governor, said this in Switzerland yesterday,
adding that further reforms, including pensions and insurance, were
needed to enliven the corporate debt market.

“At the moment a
good corporate will be able to price its bonds at 200-300 basis points
above the risk-free (government bond),” a Reuters report quoted Mr.
Sanusi as saying. “The next challenge for us obviously is not so much
the demand side but the supply side, to ensure that the subscription is
not coming from bank liabilities but is coming from actual
institutional investors.”

Mr. Sanusi said
there has to be progress on the insurance reforms, pension reforms, and
progress on other capital market reforms to attract institutional
investors, so that it is actual real, long-term money that is going
into the subscription, and not savings and current accounts.

Reducing taxes

The government has
already agreed to waivers to reduce the taxes on interest income on
bonds, which had required corporates to issue with very high yields and
therefore limited bonds’ attractiveness.

“I think at the
moment most of the corporates are waiting for other macroeconomic
reforms,” Mr Sanusi said, explaining that it did not make sense to
raise money for a power project until the right regulatory framework
was in place. He added that bad loans are an issue, which is why “we
have got a number of distressed banks in Nigeria, while the asset
management company, which is coming into place soon, is likely to take
care of a substantial part of the bad loan problem”. The importance of
a strong and viable domestic bond market as an alternative source of
finance in emerging economies has been critically affirmed by the
global financial crisis playing a crucial role in bridging the funding
gaps that resulted from the near total freeze in global credit flows as
borrowers in less developed economies were forced to look to domestic
markets in order to meet their medium to long term capital needs.

Experts say the
development of the domestic bond market is one key ingredient required
to strengthen Nigeria’s financial system and limit its vulnerability to
external fiscal shocks in the future.

Addressing infrastructure gaps

However, the
Nigerian bond market is yet to develop an electronic trading platform
on the Nigerian Stock Exchange to facilitate bond trading in the
secondary market.

Ike Chioke,
managing director, Afrinvest, a finance research and analysis firm,
said for the Nigerian bond market to fully take its position and
attract more participants, there should be a framework for adopting
international best practice primarily in bond trading platforms and
settlements and a robust banking sector operating on sound market
principles.

“The introduction of corporate bond issuances (and sustained
liquidity) will alert many investors to the strategic advantage of
corporate bonds, and opportunities for diversification presented by the
move away from sovereign debt” he said.

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Soft landing for Unity, Wema Banks

Soft landing for Unity, Wema Banks

Reprieve
may have come the way of Unity Bank and Wema Bank, following the
decision of the Central Bank to extend the deadline for their
recapitalisation.

The
banking industry regulator in September 2009 gave both banks until June
30 to recapitalise. However, when it became increasingly difficult for
both banks to meet the deadline, the Central Bank extended it.

Mohammed
Abdullahi, the Central Bank head of corporate affairs, confirmed this.
“The truth of the matter is that we are extending the deadline for
them.”

But
a statement posted on the Central Bank website last night, ostensibly
after enquiries by a NEXT reporter, said that 30 September is the new
deadline for the two banks. “We wish to inform the general public that
due to unanticipated three months extension in timeline for setting up
Asset Management Corporation of Nigeria (AMCON), the Central Bank of
Nigeria has granted a three months extension for the two banks to
recapitalise.”

Banks’ strategies

Both
banks decided to adopt different strategies to meet the target date.
Wema Bank opted to raise N49 billion from both local and foreign
investors, as well as rely on the proposed Asset Management Company
(AMCON) to raise additional N10 billion. Unity Bank, on the other hand,
hopes to meet its recapitalisation target from existing shareholders
through a rights issue. The issue, which opened on 4 June was expected
to close by 13 July, well after the deadline set by the Central Bank.
The rights issue was intended to raise about N23.9 billion.

Some
stockbrokers who spoke under anonymity, said the bank may have adopted
direct marketing to execute the sale of the rights offer. According to
the managing director of one of them, “Not many of my clients have
Unity Bank shares, and so far I have not received any request to buy.
Don’t forget that the primary market is still very fragile and people
do not have confidence in banking stocks right now. So, accessing funds
from the primary market may not be easy for the bank at this time.”

He
said the bank may have done its campaign to its high networth
shareholders who may be willing to retain their stake in the bank.

Current realities

Tunde
Olofintila, head of corporate affairs, Wema Bank, said the former
deadline was no longer feasible. Mr. Olofintila said the bank had
mapped out its recapitalisation plans and was in touch with the Central
Bank on the progress made. He said Wema Bank plans to raise equity from
the Bank of Industry (BoI) and the Asset Management Corporation of
Nigeria, expected to take off in the next few weeks.

“We have laid out all these plans and we reached an agreement with the CBN. The 30 June deadline may no longer stand.”

In
addition, he said the bank is applying for a regional licence instead
of its current licence, which allows it to operate across the country.
On the implication of this, he said some of its branches will have to
go. “Yes, just a few of our branches will have to go. Maybe 16 or 17
out of 154 branches,” he said. Efforts to get official comments from
Crispin Uduobuk, head, media relations of Unity Bank, did not yield any
result as he did not pick his calls.

Both
banks were accused by the Central Bank of not meeting the N25 billion
minimum capital, which deadline ended on 31 December, 2005.

Also,
during the stress test conducted by the Central Bank last year, both
banks were found to have failed the liquidity criteria, capital
adequacy ratio, and corporate governance, and yet did not sack the
management of the two banks as it did for the other seven banks which
did not meet these criteria.

In
addition, both banks were not up to date with publishing their
quarterly and full year result, in clear violation of Central Bank
rules.

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Lawmakers halt another aviation contract

Lawmakers halt another aviation contract

The House of
Representatives has ordered the immediate stoppage of another federal
aviation contract over allegations of over-bidding and breach of
procurement regulations.

The House Public
Procurement committee yesterday directed the Ministry of Aviation to
suspend a €17 million (N3.0 Billion) contract for the installation of
Aeronautical Information System (AIS) in airports, after lawmakers
questioned officials over the poor handling of the transaction. “I wish
to state here that the Minister of Aviation and the Director General of
the Nigerian Airspace Management Agency (NAMA) should suspend all
actions on the contract until they appear before us to clarify the
issues being raised by the contractor,” announced Yusuf Tuggar, the
house committee chairman on Monday.

Members accused the
officials of the aviation ministry, Nigerian Airspace Management
Agency, and the Bureau of Public Procurement, of flouting basic rules
and granting the contract to a company that tendered at the highest
cost for the execution of the project.

Inflated

The Minister of
Aviation, Fidelia Njeze, is expected to explain the ministry’s decision
in awarding the deal to a company that bid almost twice what was quoted
by another company.

Basic federal
public procurement rules state that contracts be awarded to companies
with lower quotations, except in special cases and even then clearance
for the award is supposed to be obtained.

In the AIS contract, Mocom/Skynet won the bid despite bidding €17.9 million, against the €9.5 million, bid by Avsatel GMBH.

The job is to set
up an AIS detection system-surveillance equipment in all airports
across the country. Further details and terms of the contract were not
made available, but the House committee chairman, said the contract
will be suspended pending the outcome of the investigation.

Contract flaws

This is the third
time in four months that a committee in the House of Representatives
has reported major flaws in a contract awarded for a major project in
the country.

A contract for the
construction of a new runway for the Abuja airport, was earlier
suspended by the House over allegations of over-costing. Lawmakers also
ordered inquiry into the costing of the expansion project of the Abuja
airport expressways.

In all three cases,
the lawmakers faulted the Bureau of Public Procurement for failing to
detect the over rated amounts, and approving the contract for execution.

For the AIS contract, the bureau spokesperson, NNebolisa Odizie,
said the decision was taken because of an “inadequate” technical and
financial evaluation submitted by Avsatel. He said the bureau abided
“strictly” by the advice of expert consultants in awarding the contract.

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