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FINANCIAL MATTERS: The new prudential guidelines

FINANCIAL MATTERS: The new prudential guidelines

The
Central Bank of Nigeria recently issued a 76-page “Prudential
Guidelines for Deposit Money Banks in Nigeria”. Effective May 1 2010,
the guidelines are a key part of the apex bank’s efforts at
strengthening the financial services industry, in the wake of several
shortcomings that have come to light since the global financial and
economic crisis set in. On one measure, the CBN has made a good first
of this goal. The document replaced by the new rulebook,

“Prudential
Guidelines for Licensed Banks”, was only 10 pages thick. So, in terms
of sheer reading effort, the new guidelines do call for considerable
expenditure. Beyond its heft, though, the new guidelines include
provisions on other dimensions of the industry’s operations (risk
management, corporate governance, anti-money laundering, etc.) that
were not even alluded to previously.

One could quibble
at the fact that a number of the additions to the new-look prudential
guidelines are a re-hash of policies the CBN has enunciated of late in
respect of its concern to ensure that banks in the country are properly
run, i.e. in the interest of depositors’ funds. Besides, if the
assignment of ensuring the safety of depositors’ funds and the
stability of the financial system is constructed narrowly enough, then
the main task for prudential regulation is to set proper limits on the
risk appetites of deposit-taking institutions. And this, the old rules
did with some success. So what new things have the new guidelines put
in place?

Basically, the new
guidelines recognise two loan loss provisioning regimes, where before,
there was just one. The “Other Loans” category essentially replicates
the provisions of the old guidelines, with 90 days remaining the
cut-off period for recognising facilities with unpaid principal and/or
interest. However, the new guidelines ease financing conditions for
specialised lending purposes.

Outstanding
obligations are now expressed as proportions of the amounts due, and
the loan-loss recognition periods have been considerably extended. In
this sense, the CBN has only acted to recognise the peculiar life cycle
of the project types that fall under its specialised lending category –
project, object, SME, agriculture, and mortgage financing. All of these
have long gestation periods between when investments are made, and when
they begin to earn revenue, with which they may rightfully meet their
loan commitments. Incidentally, these are also sectors in which the
country has the greatest need, and whose successful financing could
have the greatest multiplier effect on the economy.

That said, I’m not
quite sure the apex bank intended an additional outcome of the new
prudential rules. It would seem that risk managers in the industry had
hoped to obtain some gain from the new guidelines. This would have
happened, if for instance, the apex bank had extended the period for
recognising loan losses across all risk asset classes. Then, a number
of current provisions done in the spirit of the tougher old rules may
have been written back in aid of banks profits. Given the many comfort
arrangements that the CBN has put in place to help banks’ balance
sheets, and the fact that the industry still labours from a liquidity
glut, this was a fair hope. But it turns out that “specialised loans”
are a small portion of the industry’s current loan portfolio. So, the
hoped for gains from extending the period for recognising impaired
loans would be a lot smaller.

Nonetheless, would
these easier terms, not boost the flow of credit to these sectors of
the economy? A re-balancing of credit in favour of project financing
would be consistent with the economy’s need for new investment in
infrastructure, while better mortgage and agriculture financing should
ultimately address needs that are peculiar to the more vulnerable
segments of the economy. Still, it helps to consider why banks have not
felt a need thus far to put their monies in these very useful sectors
of the economy. When a market fails for the provision of any good or
service, it is often because the neighbourhood effects arising from
investing in the provision of such service or good are too dispersed to
generate useful returns for the investing entity, or that too large a
portion of the externalities arising from the investment are negative.

In this case, we
should worry about two things. A legal and infrastructure environment
that remains unhelpful to business, and the banks’ capacity to lend to
these sectors.

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Equity Release – unlocking value from your property

Equity Release – unlocking value from your property

Have you ever thought about raising money from the value of your
property? Many owners are sitting on properties worth far more than
they paid for them. Some have seen a significant appreciation in value
in just a few years that for many, their property is their single most
valuable asset.Equity release schemes are relatively new in Nigeria but
have been in practise for over 30 years in Western markets.

In
these markets, middle aged and retired home owners who may be “asset
rich, yet cash poor” and own their homes outright are able to release
some of the equity in their home in return for income or a combination
of cash and a regular income for the rest of their lives, whilst still
retaining the use of their home.If you own a property that has
appreciated in value since you purchased it and is unencumbered, it is
possible to unlock some of the extra value your property now has.

It
works like this: The bank takes a charge on your property and can lend
you up to 80 per cent of the capital or value of the property; the
funds can be applied to the purchase or development of another
property, or invested in other investment opportunities.Five years ago,
Mr. Taiwo bought a property for N₦15 million in Lekki Peninsular Phase
I. Today, the property is worth over N60 million, and he earns rental
income of N3.5 million per annum from it. Mr. Taiwo is thinking of
borrowing up to N40 million using the property as collateral to take
advantage of new real estate opportunities that has come up. He expects
that this investment over the next five years should yield a higher
return than the 18 per cent per annum he is paying on his loan.

The
risks

Equity release schemes as does all borrowing, come with a degree
of risk and you should fully understand the product terms before
committing.

If the market softens and property prices are
falling and you have borrowed too much based on the valuation of the
property when prices were at their highest, the value of the property
could be less than the amount you initially borrowed.It is a good idea
to borrow only what you need or as much as you intend to spend. An
equity release scheme is best utilised to take advantage of interesting
investment opportunities and not out of a desperate need to free up
cash.

If there are severe cash constrains with little borrowing
capacity, then it may be a better option to sell the property, buy a
cheaper property and release cash in that way. Remember that the lender
has a charge on your property and you must be able to service your
loan; you could lose it if you default on your payments.

You
must be able to service the loan or run the risk of losing your home
Seek professional advice Your financial advisor will look at your
overall financial situation to ascertain that an equity release scheme
is indeed the best option for you.

Product features including
the amount of money you can access, and documentation requirements are
similar to those required for mortgage applications; these vary from
lender to lender and are influenced as much by the value of your
property as by your age.

Interest rates

Naturally, property owners will
look to release equity when interest rates are low, and house prices
are stable or rising.Look critically at the interest rates;
differences of 1 per cent to 2 per cent may not seem like a lot but
they can make a big difference over a long period. Interest can quickly
mount up so be conscious of freeing up equity only where the return on
the investment more than compensates you for what can be significant
interest costs.

Estate planning Any home equity loan will have an
impact on any assets you were expecting to bequeath to your loved ones
and will directly reduce what they will inherit unless the loan is
fully paid off before you die. Review your will, and if appropriate,
consider discussing the scheme with close family members who may be
living in a particular property.

Remember that if the loan is
not fully paid for, the house will be sold and if it has been a family
home, family members may suffer much distress if they are forced to
move suddenly. Ideally this scheme should be applied to investment
properties and not the family home.It is always worth considering your
other assets to determine whether there are alternative yet affordable
ways of raising the money you need.

Have a clear idea of your
key objectives, your personal priorities, risk appetite, and views on
the direction of property market as this should influence your decision
as to whether or not this product is appropriate for you.

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Asset Corporation, election spending may trigger inflation

Asset Corporation, election spending may trigger inflation

The Asset
Management Corporation of Nigeria (AMCON) will ease current credit
crunch but it may also trigger inflation in the economy. Experts who
reviewed the situation insist that unless the Central Bank comes up
with adequate measures to check the increase in money supply that will
follow, the economy may be faced with cost-push inflation in the
immediate term.

The AMCON Bill,
which has been passed by the National Assembly and is awaiting
presidential assent before it becomes operational, is expected to buy
the toxic debt of banks and free up their books and encourage lending.
The company will start with a minimum of N20 billion capital.

Currency in
circulation which has been on a steady decline in the last six months
is expected to rise with the floating of the AMCON. Currency in
circulation which peaked at N1.18 trillion in December 2009 dropped by
N1.05 trillion in May 2010, a decline of over 11 per cent.

Money supply

Razia Khan,
regional head of research, Africa, Standard Chartered Bank in a recent
paper entitled “Nigeria – Assessing Inflation Risks” said AMCON
creation and plans for increased government spending ahead of elections
in 2011 will both add to money supply which may trigger inflation.

Ms. Khan noted
however that with growth below potential output, inflation risks are
unlikely to be as magnified as they would be in a healthier growth
scenario.

“Of course, for
Nigerian inflation, structural bottlenecks remain important. The extent
to which reform is successful in relieving structural bottlenecks will
determine the extent to which favourable liquidity adds to growth,
rather than merely feeding through into higher prices,” She favoured a
deliberate firming of the naira as a guard against inflationary trends
that might follow. In an email response to further questions, Ms Khan
said efforts to improve the value of the naira remain the best
safeguard when it comes to keeping inflationary pressure in check. “It
is more a question of whether the CBN can commit to strengthening the
naira (if that is what it takes) to keep inflation under control,
without running down FX reserves.”

It may become worse

Felix Oboagwina,
director of publicity of the Democratic Peoples Alliance (DPA), said
the situation could become worse as the National Assembly members are
currently demanding for a rise in their allowance. According to him,
the demands of the law makers are not realistic.

“What they are
asking for and the manner these funds will eventually be spent will
have consequences on the economy. It means we will have a lot of money
chasing limited goods and this can lead to hyperinflation. Are these
demands realistic, from N27 million quarterly allowance to N40 million
in a country where minimum wage is N7, 500.” Mr Oboagwina said the
problem is not the amount of money that would be released into the
system but the fact that this will be at the expense of the real sector
of the economy. “The real sector has been dwarfed by the activities of
these politicians and so we have seen a total collapse of the middle
class.” He added that beyond the effort of the CBN to control the
situation, there was need for the National Assembly, governors and the
presidency to come together to look at some of these social issues that
have led to the rising unemployment and crime in the country.

The Central Bank raised similar concern in its communiqué at the end of the May 2010 Monetary Policy Committee (MPC) meeting.

The communiqué which was signed by Lamido Sanusi, CBN governor,
noted that monetary expansion in the next quarter may be driven by
increased government spending, the purchase of toxic assets by the
AMCON and recapitalization of distressed banks. “These expansions may
translate into the risk of higher inflation, asset price bubbles or
pressure on exchange rate and foreign reserves,” he said.

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New gas flare in Bayelsa is recipe for conflict

New gas flare in Bayelsa is recipe for conflict

The decision of Shell Petroleum Development Company
(SPDC) to ignite a new flare in Opolo-Epie, Bayelsa State, is further
testament to the company’s flagrant disregard for the people and
environment of the Niger Delta and a direct threat to government’s
efforts to bring about genuine and lasting peace in the region, the
Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) has
cautioned.

ERA/FoEN’s warning is coming against the backdrop of
field monitoring reports over the weekend that confirmed the Opolo-Epie
flare lit by the oil giant on Sunday June 13, 2010, is still raging,
fouling the air and threatening the peace that exists in the community.

In a statement issued in Lagos, the environmental
justice group described the development as “worrying,” warning that it
was a throwback to a similar action by the company at the Gbaran/Ubie
Gas Gathering Plant in nearby Gbarantotu Community in November, 2009,
which was put out only after ERA/FoEN and members of the community
mobilized and kicked against it.

More flaring

“It simply beats the imagination what the rationale
is behind Shell’s igniting of a new flare barely days after it
announced it had downed the volume of flares in the Niger Delta by 65
per cent because of so-called gas gathering infrastructure that will
gulp an estimated $3 billion at completion. But we can, however, try to
input that that announcement was mere propaganda,” said ERA/FoEN
Executive Director, Nnimmo Bassey.

“While it may not be too surprising that Shell is
taking this course of action due to our own government’s double-speak
and excuses on why flares continue, we are emphatic that Shell must
respect the rights of the Opolo-Epie Community and the generality of
Niger Delta people to a pollution-free environment by halting the
noxious plumes.” According to Mr Bassey, it was the height of
insensitivity for flare sites to be set up at a time the global
community has risen with one voice to condemn the practice, even as he
added that successive administrations have demonstrated insincerity in
halting routine gas flaring or put in place appropriate sanctions that
will guarantee an end to it.

He explained that gas flaring is a monumental waste
of Nigeria’s natural resources, and a mark of unacceptable double
standards by the oil companies, which not only contributes to
greenhouse emission but also violates the rights of the communities
around the flare sites, and must stop immediately.

“We have said it time and again that Shell’s much-touted investments
in the so-called gas gathering infrastructure is only a ruse to buy
time and perpetrate flaring. This is evidence that the wellbeing of
oil-bearing communities means nothing to the company and it remains
indefensible. The flares in Opolo-Epie and other sites in the Niger
Delta must stop now,” Mr Bassey said.</

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Social investment: The fundamentals of CSR

Social investment: The fundamentals of CSR

The
latest buzzword in the business world is CSR, CSR, and still more CSR.
This acronym stands for Corporate Social Responsibility. It’s the way
the titanic conglomerates, not so gigantic medium and small companies
try and ‘give back’ to the various communities that host them. They
want to improve the conditions of the location, or the people that
reside there. We could also say, that they want to make an impact or
impression on the environs, so that they will be known for doing good
and hopefully, will not be found wanting.

The projects for
giving back to these locales are as varied as the companies are
diverse. Companies in the manufacturing, food and beverage,
telecommunications, banking and financial services, pharmaceutical, the
health service, oil and gas (both upstream and downstream are not left
out!) and we also have faith-based organisations casting in their lot
as well. It must be noted that these players take their commitment
seriously and will go to varying lengths to announce the projects they
have endorsed, committed to implementing, commissioned and completed.

A full page
advertisement in the newspapers, notable mention and video clips of the
event on prominent television stations, are just a few of the ways that
they ensure that their corporate responsibility is heralded to the
world. This is not a bad thing and like all systems that work, it
should be a symbiotic relationship between the host community and
corporations that operate there.

When the business
entity made it’s advent into the community, it was announced one way or
the other, and as such when it decides to invest where it previously
had only a commercial interest it should also be trumpeted, because
this means that the relationship has evolved to the advantage of both
parties.

Education, health,
poverty alleviation, HIV/AIDS, youth empowerment, are just some of the
projects that are making their mark in various societies. Sometimes, a
combination of a few of the aforementioned is incorporated into a
project at different stages of its implementation. The youth, very
young children, women, men, and even the elderly are not left out of
the drive to improve the quality of life they presently enjoy.

A productive way is
found for the youth to utilise their time, immunisation and other
health care may be devised for the children and their mothers;
health-care management and provision of attendant services for the
elderly, destitute and widows. As stated earlier making a mark takes
different routes. In all the betterment of the society and the people
from which they benefit is the driving force of these corporate
citizens.

Self-enlightenment
or interest is the driving force behind these projects, after all, how
can you benefit from your operational environs when there’s
deterioration in these conditions. Ultimately, one or both of the
entities in the situation suffers and most likely may cease to exist in
their original form in that location. Thus, investing in communities
and people ensures the longevity of the companies and their structures,
whilst serving the community that accommodates them.

Although companies
have demonstrated their willingness to be accountable and
correspondingly dependable, they have also made themselves vulnerable
at the selfsame time. This is because with their investment in these
local communities, they have taken identified and acknowledged that
they will no longer be passive and content to watch things happen, but
will be involved in making them happen. It thus, behoves them to ensure
that the CSR projects that they commission and implement in different
locations, be sustainable.

Merely donating
expensive equipment, or building different infrastructures that cannot
be locally maintained by the materials sourced from that community or
its immediate environs should not be initiated at all. This means that
adequate research into what benefits can be derived from a particular
scheme and also how these benefits can be optimised should be of utmost
consideration when our able corporate citizens seek to demonstrate
their largesse once more, after all that is part of being a responsible
corporate entity in the society.

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Putting our loss to Argentina behind us

Putting our loss to Argentina behind us

Before
Nigeria’s opening World Cup game against Argentina on Saturday, the
belief among many Nigerian football fans was that the Super Eagles
would be thoroughly shamed by their South American opponents.

A number of factors lent weight to this belief. In
the first place, the Argentines are blessed with some of the deadliest
strikers on the planet with the world’s best player, Lionel Messi, in
their fold.

Our fear of a bashing by the Argentines was
heightened by the shambolic preparations of the Eagles going into the
tournament. A new coach was appointed only late February, just three
months to the World Cup, and the Nigeria Football Federation organised
only three friendly matches in the last two weeks before the tournament
commenced.

So, Nigerians figured that with Messi, Carlos
Tevez, Gonzalo Higuain and Diego Milito, who between them tallied over
130 goals for their clubs in the just ended football season, our Eagles
didn’t have a prayer.

As it turned out on Saturday afternoon at the
Ellis Park Stadium in Johannesburg, Argentina only managed a slim
victory with defender Gabriel Heinze’s sixth minute goal making the
difference. It must be conceded however, that the 1-0 does not
accurately reflect the effort and determination of the Argentines.

Indeed, Messi was at his creative best, threading
passes and making dangerous runs into Nigeria’s goal area but was
thwarted again and again by the brilliance of Eagles goalkeeper,
Vincent Enyeama whose valiant efforts deservedly won him the ‘Man of
the match award’.

Our loss to Argentina has continued to generate
debate even as Nigeria’s next group match looms. In situating the loss,
some football pundits have queried Coach Lars Lagerback’s decision to
opt for a 4-4-2 formation, which they claim robbed the players of the
needed latitude to check Messi who repeatedly latched on to the ball
just in front of Nigeria’s last four. They argue that rather than
defend in two lines, which the 4-4-2 formation forced them to do,
Lagerback should have opted for a 4-3-3 formation, which would have
allowed the Eagles to threaten the Argentines whose right back appeared
flustered.

Added to the faulty formation was poor marking by
the Eagles, which provided Messi and his colleagues with acres of space
to explore time and again.

The perceived flaws notwithstanding, it must be
said that the Eagles did well given the circumstances. Under Lagerback
there has been greater discipline among the players as we have seen
from the last three friendly matches and the one against Argentina. The
Eagles are playing with a greater sense of urgency and commitment than
was the case in the past. There is also now a higher level of adherence
to tactics. One clear example is in the area of marking. It is to the
credit of our defenders that despite the intense pressure Messi and the
other Argentine forwards unleashed, they did not overreach themselves
and give away penalties.

All this is not to suggest however that there is
no room for improvement. Nigeria plays Greece on Thursday in an
encounter that is crucial to the quest of both teams to remain in the
tournament. The Greeks are certainly going to have a serious go at the
Eagles knowing that defeat at our hands means the end of the World Cup
for them. The Eagles need to be focused for this match. The
backslapping and chest thumping that followed their ‘survival’ of
Argentina should give way to maximum concentration and determination to
pick the three points on offer in this match. Nigerians expect nothing
less.

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The last trumpet would be a joyful sound at the World Cup

The last trumpet would be a joyful sound at the World Cup

As
many cheeseburger-loving Americans long feared, soccer has finally
driven the world stark raving mad. Wanting to create an international
buzz in the worst way, the World Cup unleashed something called the
vuvuzela on an unsuspecting planet. Ears bleed from Amsterdam to
Alabama.

And the world screams back: Hey, put a sock in it!
The vuvuzela looks like a harmless plastic trumpet. A mere toy, at
first glance. But more than 500,000 vuvuzelas have descended upon South
Africa, and faster than you can say “Didier Drogba,” tournament
organisers have a plague of white noise that disrupts every game and
disturbs every telecast.

“It’s almost as if South Africa has been invaded
by a million bees,” TV play-by-play announcer Ian Darke bellowed
Sunday. The audio feed sounded as if ESPN was broadcasting from the
dark side of Mars, with the action on the pitch drowned out by the
unrelenting din of vuvuzelas, which can generate a mind-splitting 125
decibels.

For folks who don’t speak the language of soccer,
the buzz is pronounced: voo-voo-ZAY-la. It is sold as a musical
instrument of mass destruction. The vuvuzela poses the greatest threat
to permanent hearing loss at a stadium since Roseanne Barr received a
lifetime ban from singing “The Star-Spangled Banner.” These garishly
hued plastic horns cost 3 bucks, are as long as an elephant’s trunk and
threaten to swallow the biggest sporting event in the world.

“We have asked for no vuvuzelas during national
anthems or during stadium announcements,” Danny Jordaan told reporters
in South Africa, admitting his World Cup organising committee has
considered banning the trumpets. “I know it’s a difficult question.
We’re trying to manage it the best we can.” Where on earth did this
fascination for soccer fans blowing their horn begin?

While the exact origin of the word is clouded in
mystery, some intrepid etymologists have traced it to Zulu and believe
when loosely translated, vuvuzela means: Bored to deaf.

At risk of revocation of my natural-born right as
a U.S. citizen to supersize my meals at Mickey D’s, let me confess to
be one American who truly, deeply and passionately loves soccer.

The 1-nil scores don’t upset me. I even kind of
dig the wacko tradition of hooligans trying to burn down bleachers with
flare guns in celebration of a goal. The vuvuzela, however, is turning
a beautiful game into nails on the chalkboard.

This is not to say American ingenuity is without
guilt when devising mindless ways to make a racket inside an athletic
venue. So we will take the rap for the cowbell, the thunderstick and
the immortal wave, where everybody, including your Aunt Nancy, waits to
stand up and be identified as over served.

But as we watched Team USA tie grumpy old England
1-1 on TV, how many millions of Americans had the same immediate
reaction as cyclist Lance Armstrong?

“What is that horn going off in the stadium?”
Armstrong tweeted. After determining the source of the noise pollution,
he chirped, “No offense to the vuvuzela posse but, man, it’s a bit
much.” Aren’t soccer crowds supposed to sing? As rock stars from Paul
Simon to Bono can attest, no continent can lift up its voice in song
the way Africa can.

How hard could it be to set up collection bins
outside every World Cup venue? If Americans will dump bottles of cold
beer before entering an NFL game, then soccer fans can surely be
trained to surrender a vuvuzela at the gate.

Kill the buzz. Please.

For the love of Pele and everything soccer holds sacred, put an end to this endless torture of white noise.

Are we just being ugly Americans to complain? Hey,
don’t make us send Will Ferrell, the “Saturday Night Live” alum who
also played a soccer dad from Hades in the classic soccer movie
“Kicking & Screaming,” to Johannesburg to clean up this mess.

Because do you know the only stadium sound that could be possibly be more annoying than a vuvuzela?

More cowbell.

© The New York Times 2010

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S(H)IBBLOTEH:Our Daily Dread

S(H)IBBLOTEH:Our Daily Dread

Something
happened to the discourse on bread in Nigeria when Auntie Dora, whom
you know as the “NAFDAC Woman,” tried to teach some bakers that what is
used in preserving a dead body should not be used in preserving a loaf
of bread meant for human consumption. Nigerian consumers of these
loaves were praying, “Give us this day our daily bread” but ironically
the bakers were answering their prayers with “well preserved” loaves of
“dread.” For them, the transformation of bread to dread was a special
work of scientific genius, with the consumer easily crossing the
threshold of life just as in the phonemic space of the word; a “b” that
looks backwards becomes a “d.” If “b” is for “birth” and “d” for death,
then a “b” that has looked back like Lot’s wife to become a “d” has
exhibited the highly appealing condition of life-after-life. Auntie
Dora did not like this tragic discourse and so quickly banned the
production and sale of bromated bread. But that was not the end of “our
daily dread.” It is one thing to deliver bread from bromate and other
poisons and another to protect it as it makes its journey from the
bakery to the dining table. One who observes the handling of loaves of
bread in our markets and streets would in fact wonder whether it would
not have been better for us to ask God to give us our daily “akpu” or
“eba” instead of the kind of loaves that would mean greater wahala for
the consumer.

OK, here is a
playback: a bread vendor is faithfully going round, with naked loaves
on her tray, thinking, perhaps, that a naked loaf is more tempting than
a dressed one. One loaf of bread in search of adventure would roll off
the tray and fall into the gutter. The bread vendor would not tolerate
that impudence: she would pick the disobedient loaf up and then flog it
with a piece of cloth, most probably the one she had made into a pad
and had been using in balancing the tray on her head. Then, when she
has executed the punishment, she would put back the loaf on the tray.
Much later, you could see her trying to impress her customers by using
a duster that wears a serious frown on its face to “clean” the loaves.
A clean loaf needs a massage, always. That, too, is an advertisement
strategy, for someone would see the “retouching” and develop an
appetite.

As I contemplate
turning a bread experience into a S(h)ibboleth essay, a taxi pulls up,
and I can see naked loaves of bread packed in the greasy luggage
carrier and even inside the passenger area of the vehicle. The local
vendors – mostly women – rush in to be the first to buy the naked
loaves. As they say in Igbo, “Anu bu uzo na-anu mmiri oma” (The animal
that reaches the water first takes a clean draught). The women struggle
for the naked loaves and the naked loaves struggle for space on the
trays, cartons, and sacks. Some loaves fall on the ground and are
picked up again and placed on the trays or in the cartons. And each
loaf picks the smell and stain of each space it occupies on its journey
to someone’s mouth.

Minutes later, Mama
Bread-and-Butter begins to make her round, with the loaves not dressed
in transparent cellophane. She stops as a customer beckons her. She has
an itching nostril, and so digs into each nostril with her finger in a
kind of practiced scrub. With the same hand she grabs a loaf and slices
it, then butters it and hands it over to a man waiting. The man takes a
bite and then pays. I am horrified and have to pray to God not to puke.
But within my heart, a heretic prayer is already forming: give us this
day our daily dread! Auntie Dora should hear this, I swear under my
breath. When next she comes, she should inspect the nostrils of Mama
Bread-and-Butter. Auntie Dora should also interview the loaves of bread
so that they could tell her how they make their journey from the bakery
to a man’s mouth, where and how they were dressed and undressed.

As I get ready to
go to church, I have to rehearse Our Lord’s Prayer properly, for if
care is not taken, I could start uttering, “Give us this day our daily
dread” when others are saying “Give us this day our daily bread.”
Someone would think I am devilishly trying to add some bromate into the
bread the Lord is baking for His people.

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Samba Boys out to crush Koreans

Samba Boys out to crush Koreans

Nothing short of
victory is expected from five-time champions, Brazil, as they open
their World Cup campaign against the minnows, North Korea.

The Brazilians are
currently ranked number one in the world, while North Korea are 105th
the least position amongst the 32 countries competing at the World Cup.

David and Goliath

On paper there
should be only one outcome from this game, with the evidence in
disparity in pedigree of these two teams. Brazil is the only country to
have taken part in every edition of the global football showpiece with
the South Africa 2010 edition being its 19th appearance. For their
part, Korea DPR are returning to the world stage for the first time
since their debut appearance in 1966.

The Koreans would
however relish their heroics at the 1966 England World Cup where they
shocked the world with a 1-0 win over then two-time world champions
Italy before going out after an epic 5-3 loss to Portugal in the
quarterfinals. Here, they will be hoping to replicate that feat.

Blazing form

Under Dunga, the
South Americans booked their place in South Africa with three games to
spare while Coach Kim Jong-Hun’s side left it until the closing match
to seal qualification with a goalless draw against Saudi Arabia.
Brazil’s build-up has featured five straight friendly wins. Since their
successful defence of last year’s FIFA Confederation World Cup here in
South Africa, they have recorded eight wins in ten matches played. The
Koreans by contrast, were often found wanting in their eleven warm-up
matches, which yielded just two victories.

History

It should be also
noted that Brazil has not lost an opening match in the FIFA World Cup
since 1934, when they were stunned 3-1 by Spain. The Samba Boys have
also kicked off their campaign with a win in the last seven tournaments
from 1982 to 2006. This the first encounter between the sides at senior
level. Brazil and Korea DPR have however squared up twice in the FIFA
U-17 World Cup. On each occasion, the Brazilians have emerged victors.

Brazil has scored
four goals in both of its encounters against Asian sides at the FIFA
World Cup- 4-0 against China in 2002 and 4-1 against Japan in 2006.
With players such as Kaka, Robinho and Luis Fabiano in its fold, the
Brazilians look good enough to cause problems for any defence it
confronts.

Another debut

In the other match
of the day, New Zealand will be up against Slovakia. This is the first
meeting between these two sides at any level. This is only the second
time in their history that Slovakia has come up against an Oceania
team. In 2000 they ground out a 0-0 draw with Australia in Valparaiso,
Chile.

New Zealand makes a return to football’s flagship event following a 28-year absence.

Slovakia on the
other hand, is the only nation appearing at the World Cup for the first
time. The last two European sides to debut at the World Cup each lost
their opening matches-Slovenia in 2002 (3-1 to Spain) and Ukraine in
2006 (4-0 to Spain).

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Bio hails Eagles, urges team to do better

Bio hails Eagles, urges team to do better

The Super Eagles
may have lost their opening match of the World Cup on Saturday to
Argentina, but they are still receiving plaudits for their performance
in the encounter that saw them limiting the Argentines to just one goal.

Latest to join in
the bandwagon is the Nigerian Sports Minister, Ibrahim Bio, who
commended the side for their spirited display against the two-time
world champions.

Bio, who also
doubles as chairman of the National Sports Commission, NSC, met with
the players at their Protea Hotel base camp in Richard’s Bay, on Monday
afternoon, and urged them to take heart over the defeat while also
encouraging them to give their very best in their upcoming games
against Greece and South Korea.

“In this spirit, I
urge you to have it in your minds that the government and people of
Nigeria are fully behind you in the campaign and will be looking
forward to your giving your best in the remaining two matches of the
group phase, in order for you to qualify for the knockout round,” said
Bio.

“I believe you can
do it, and I believe you will do it”, added the minister, who was
accompanied on the visit by the other top officials of the NSC,
including former Nigerian defender, Patrick Ekeji, who is now the
Director-General of the NSC.

On ground to
receive Bio and his entourage at the hotel was the Nigeria Football
Federation’s technical committee chairman, Taiwo Ogunjobi, also a
former Nigerian defender, who thanked the minister for coming while
also assuring him that the players are in the right spirit to go all
out and do the country proud in the games against Greece and Korea
Republic.

More praise for Enyeama

Vincent Enyeama was
the primary reason why the Super Eagles were able to limit the
Argentineans to just a solitary goal last Saturday, in a performance
that earned him not just the game’s Man of the Match award, but also a
much deserved recognition by the international media, after years of
being relegated to the background.

The latest plaudits
from the international media arrived in the form of South African
newspaper, The Sowetan, whose Monday described Enyeama as “The man who
stopped Messi in his tracks.” Messi, himself had in his own
commendation for the Super Eagles’ goal tender, whom he described as
“phenomenal”, but excerpts of the story in the newspaper read: “He may
be the Footballer of the Year, but on Saturday at the Ellis Park,
someone else was Man-of-the-Match.

“There was
widespread praise for the stunning goalkeeping of Israel-based Vincent
Enyeama, who pipped Argentine superstar Messi, whose team won 1-0, for
the official Man-of-the-Match honours.

“Enyeama, in goal for Nigeria, stared down the creative Argentines,
making fine saves, four of them from Messi, and almost helped Nigeria
to pull off a draw.”

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