Archive for nigeriang

Credit bureaux to the rescue

Credit bureaux to the rescue

Still smarting from the credit crisis of last year, many banks
are now tightening their credit disbursement processes. This follows the
directive by the Central Bank for banks to engage the services of at least two
licensed credit bureaux in determining the credit behaviour of their customers.

Credit bureau operators confirm that there has been higher
patronage by the banks since the CBN circular issued in April. They, however,
complain about the quality of data which they say still falls short of what is
required to make informed business decisions. According to the CBN circular,
all banks and financial institutions need to comply with the provisions of the
guidelines on the licensing, operations and regulations of credit bureaux by
having a data exchange agreement with a minimum of two credit bureaux licensed
by the central bank.

This also covers all previous loans granted to enable the
determination of the borrower’s current exposure to the financial system. The
banks are also expected to report periodically on the performance of the loans
in their portfolio to any of the two credit bureaux with whom they have a data
exchange agreement and to obtain quarterly credit report from at least two
credit bureaux for all previous loans granted to determine borrowers’ composite
exposure to the financial system.

Increased compliance

Ubong Awah, chief accountability officer of XDS Credit Bureau
said the level of compliance has increased. Mr. Awah said with the CBN
regulation, there has been more interaction between the banks and the bureaus,
adding however, that there is room for improvement.

“The figures are not up to expectations,” he said. “You know we
are in a depressed economy. Most of the credit has been to government while
credit to private sector has not really grown.” According to Awah, banks are
currently engaged in remedial work of trying to reassess previous loans and are
being careful in taking up additional bad credit in their books. He projected a
higher figure in the third quarter when the economy would have recovered and
the various credit easing policies of the CBN.

Ahmed Popoola, managing director of Credit Reference Company
said the compliance level by banks was encouraging. According to him, out of
the 22 banks that have signed on with his company, 15 are using and submitting
data as required. “Only seven are yet to comply and each of them has been given
four months period to comply depending on when they signed on,” said Mr.
Popoola.

Data quality

Operators are however worried about the quality of data that are
currently available from the banks. Customer data, whether individual or
corporate must cover up 70 per cent of the identity of the individual before it
can qualify as sufficient, explained Popoola. He said what is important is how
far the banks are ready to comply.

“There are administrative, legal and IT issues involved,” he said, adding
that some of the information cannot be obtained without the consent of the
customers. Mr. Awah said the quality of data will depend on changing the credit
culture of Nigerians to see the importance of credit bureau to the economy.
Popoola believes that the credit bureaux are pivotal to the growth of the
economy. “It is in the interest of the banks and it is in the interest of their
customers. There is no economy in the world where banks give credit to the real
sector and individuals without a functional credit bureau system. So it is in
the interest of the economy for credit bureaus to work in Nigeria.”

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More banks migrate to chip and pin cards

More banks migrate to chip and pin cards

More banks are migrating from magnetic stripe cards to the chip
and pin EMV cards (Euro pay, MasterCard, Visa), in response to the Central Bank
directive and the increase in fraudulent activities.

The Central Bank has shifted the migration date about four
times: August 2008; April 1, 2009; June 30, 2009 and December 31, 2009.

Notwithstanding, some finance experts say card holders still
have a lot of safety responsibilities despite the migration to the improved
chip and pin cards.

Intercontinental Bank was the first to introduce the chip and
pin verve cards last year and other banks, including Zenith Bank, GTB, Eco
Bank, Skye Bank, have since joined the race.

The magnetic stripe card was introduced into the Nigerian
economy, through the banks in August 2003 by InterSwitch Limited, the company
that offered card services to the banks at the inception of e-banking in
Nigeria and introduction of ATM.

The chip and pin implements the global standard that is helping
ensure Smart (Chip and PIN) cards, terminals and other systems can interoperate
for secure payments and are less prone to fraud.

The chip technology guarantees that information stored is not
accessible to unauthorized persons. The pin is encrypted (held in a secure
memory) within the chip, meaning that it is difficult and time consuming for a
criminal to access the pin if your card was stolen.

Safety is paramount

Deji Oguntonade, a staff of SugarAnt Technologies Limited, a
technology firm, and an electronic banking consultant said despite improved
technologies, card holders would always be responsible for the safety of their
cards.

“The EMV cards offer more security, but the customer is still
obliged and responsible for keeping his PIN, which is the critical factor in
the usage of the card. It’s the customers’ responsibility to protect the PIN,
and keep the cards from being stolen or lost. The security is that the cards
cannot be easily cloned as before”.

In terms of liability for the transaction as a result of using
an EMV card, the situation is very clear.

Paul Love, a technology solution consultant for ACI Worldwide, a
technology company specialised in aiding customers with large-scale smart card
projects and EMV migrations in response to enquiries says the liability burden
of an ATM discrepancy using an EMV card is clear.

“From a technology point of view the position is clear, the EMV
card and the PIN can be proven to have been used in the ATM,” Mr Love said.

“From a liability point of view, in normal circumstances the
cardholder is absolutely liable for the transaction”.

“What happens in abnormal circumstances depends on the
relationship the customer has with the bank, and the banks approach to customer
service. If a card is used after a customer has reported it stolen – the bank
should then be liable.

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Sorry Barack, I’m watching World Cup, says Biden

Sorry Barack, I’m watching World Cup, says Biden

An unabashed U.S. Vice President Joe Biden told President Barack
Obama on Friday he was sorry for leaving him behind to manage the oil
spill but was thrilled to be watching the World Cup.

“I am honoured to be (here)
representing the United States. The president is angry,” Biden told a
group of dignitaries at the U.S. consulate in Sandton, near
Johannesburg.

Biden, who arrived in South
Africa with several family members about a day ahead of the kick-off to
the sports spectacle, told the group not to take the U.S. side lightly.

The United States play England
in their opening Group C match on Saturday and the Irish-American Biden
expects to be in attendance cheering on coach Bob Bradley’s side.

“In the spirit of a genuine Irishman, we are going to beat England,” Biden said.

The British oil company BP’s Gulf of Mexico spill has given President Obama one of the biggest problems of his presidency.

The Vice President also offered
his condolences to former South African President Nelson Mandela whose
great granddaughter was killed in a car crash on the eve of the World
Cup opening.

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A cruise in the night

A cruise in the night

You don’t always get the chance to sail the Durban Harbour at
night. When officials of South African Tourism (SAT), announce a boat cruise
for hosted media and trade partners from South, West and East Africa on our way
back to the hotel after the day’s activities at the International Convention
Centre, Durban, venue of the 2010 INDABA, my colleagues and I needed no prompting
to be part of the trip.

Some hours later, we are on our way to the world’s ninth largest
harbour and popular holiday resort for foreign yachts in great spirits.
Legendary explorer, Vasco da Gama, reportedly sighted the Bay on Christmas Day,
1497, when he anchored off the bluff and named the lush area Natal. The name
was later changed to Durban in 1835 after the first British governor of the
Cape Colony, Benjamin D’Urban.

Our specific destination is Wilson’s Wharf, one of the three
marinas on the harbour fed by several streams and where the Allen Gardiner, a
20 metre wooden boat built during World War 11 is berthed. It is a merry group
of over 50 people that attempted to board the boat named after Captain Allen
Gardiner who, in 1835, called the first public meeting in Natal. Sadly, all of
us could not because the cruise which operates all year round, including
Christmas day, doesn’t take more than 45 passengers on its deck and in its
dining room. A quick consultation and some officials of SAT give up their
space. Some of us then appropriate the saloon while we (the three Nigerian
journalists) and others settle for the deck.

Fun sailing

It is a clear, starry night as Mark Folucle, the boat driver who
has been at the trade for five years, fires the engine. One of his assistants
tells us the course on the public address system and assures that dinner and
drinks would be served. He urges us to relax and enjoy the cruise.

It is fun sailing the busiest port in the Southern Hemisphere.
We cruise the calm waters of the harbour along the Maydon Channel (one-time
landing strip for the UK Royal Mail flying boats); the Silt Canal, past the
protected conservation mangrove swamps and Pelican Island, turning where the
Silt Canal ends at the Bluff. We pass several towering vessels bathed in light
and anchored in the bay where other recreational activities including canoeing
and kayaking, parasailing, fishing from boats and bird watching are carried
out.

The almost three hours we spend on the cruise is like an hour
with the informative commentary by the crew, drinks, dinner and the lively
conversation. National boundaries are broken as all of us (Nigerians, Kenyans,
Batswana, Malawians, South Africans) discuss almost every subject-politics,
religion, economy, the World Cup and relationships. Though Phumi Dhlomo,
Regional Director, Africa and Domestic Markets, South African Tourism and
leader of the tour, tries to raise ‘Shosholoza’ the traditional South African
folk song sung in a call and response style, people appear more interested in
the discussions. Only a few people respond before returning to their
conversations.

Worthwhile experience

Folucle, the boat driver, is a widely travelled sailor who has
been to most of the countries in Southern and Eastern Africa. “It has been good
driving a boat,” he tells my colleague and I when we join him at the wheels. “I
enjoy doing it but I won’t use the word exciting. I enjoy especially now that I
am taking a group on tour.” He takes people on the boat cruise everyday but
relaxes when he is not cruising. “One of my favourite sports is sailing and
when I am not driving a boat, I am sailing.”

Dhlomo also explains the objective of the night cruise. “We
organised the boat cruise so that people can have a good view of Durban. Most
people who visit Durban only see the city during the day, they do not see what
the city has to offer at night. Hence the boat cruise offers the perfect
opportunity for people to have a good view of the city at night from the
Lagoon.

“We also want our trade partners to have a taste of what their
customers stand to gain and see when they go on a boat cruise like this so that
when they market Durban, they will be able to tell their story from experience
and be able to sell the city as a good tourist destination in South Africa.
Durban has a lot to offer. There is a clean and interesting beach here, good
hotels and the food is also tasty.” He couldn’t have put it better, Durban is
as he says.

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Politics in a sleepwalking nation

Politics in a sleepwalking nation

Olayide Olaosebikan is a United Kingdom-based Nigerian. A
Lecturer and Management Consultant by, he is also a politician of the Action
Congress interested in becoming the next governor of Ogun State – the seat
currently occupied by Gbenga Daniel of the People’s Democratic Party.

But for the nature of our politics and the culture of the
practitioners therein, Olaosebikan’s ambition would not have courted my
curiosity. After all, he is a Nigerian eminently qualified and constitutionally
empowered to so aspire. However, owing to the obtainments in Nigeria’s
political landscape; and the dramatis personae involved in the political
theatrics of, especially, the Gateway State, where so many questions remain
unanswered and so many issues remain unresolved, seeing trouble and
determinedly walking into it on the part of the aspirant could not go
unquestioned.

I wanted to be educated on what he wanted in Oke Mosan, that
committing his hard-earned resources to a project like this should be his next
cherished ambition.

Looking rather un-flustered, Olaosebikan determinedly began to
reel out what he has in store for his people and why he is the “right man for
the job.” Good talk; lofty aspiration; it seemed. But are these ingredients
enough to prepare a broth in a land where stuffers, snatchers and vampires who
have tasted power have become so engrossed in it that exiting will be the last
word in their political bible? Maybe! Maybe not! So, I got rather confused, not
convinced! On a personal note, I have on several occasions wondered why we are
so blest as a country and as a people.

With each passing day, credible people move away from politics
for fear of dear lives, thereby leaving the stage for mediocres and political
never-do-wells to thrive. Fifty years after independent nationhood, Nigeria
remains a country where people with genuine interests are not only shortchanged
but are crudely dealt with for daring to be patriotic. It is only the more
fortunate ones who end up as exiles.

Without doubt, politics is all about issues. It is about
morality and credibility. Above all, it is about loyalty to the country, not to
any particular individual, however strong or powerful. Put succinctly, it is
all about a leader’s ability to match words with action.

However, in our own clime, politics has gone beyond being the
survival of the fittest. It is now the exclusive preserve of the meanest and
the crudest. Mere men with narrow loyalty have taken positions and, as such,
the more one is at home with Nigeria’s political abracadabra, the easier the
success. Here, it is the unrighteous who is able to maintain his rule while the
virtuous can only go a-grieving. That is why it has become practically
difficult for the Olaosebikans of this world to challenge the status quo.

Oscar Wilde might have had Nigeria at the back of his mind when
he described democracy as nothing other than the “bludgeoning of the people, by
the people, for the people.” Here, political vipers and backstabbers who only
politic for self-serving interests thrive, while patriotic citizens are reduced
to mere means to self-satisfying ends.

Will Nigerians ever learn some lessons about history? Michael
Ani left the electoral stage without using his experience to advise Nigerians
on how to get it right. Victor Ovie-Whiskey, Eme Awa and Ephraim Akpata all
died without muttering or uttering a word with regard to what actually went
wrong; or why they went wrong in the first place.

While no one seems to know the whereabouts of Abel Goubadia,
Humphrey Nwosu is still alive, but more as an outsider in power than one man
sure enough of himself to sincerely convince Nigerians that he actually knew what
his job as umpire entailed during Nigeria’s trying times.

As a way of getting out of the woods, we are being advised to
vote and make our votes count. We are being asked to vote and jealously guide
our votes. Wait a minute: with the way politics is being played in Nigeria, is
any politician worth dying for? In any case, how do we protect ourselves from
hoodlums and assassins who daily taunt us with guns and allied weapons? For
instance, if we protect our votes, how do we protect the vote-protectors from the
ravaging guns of those who are ready to do anything to ruin everything?

Not that alone, “can two walk together, unless they are agreed?”
The galling truth is that, in our own country, while the ruling party is
disorganized and willing to self-destruct, the opposition is grossly loose,
particularly scattered and practically unfocused.

But things cannot continue this way. There is an urgent need to
carry on board credible and competent people. They need to be encouraged, not
scared. They need to be empowered, not emptied.

Essentially, there is an urgent need for sincere soul searching.
As such, even while we can do nothing about the past other than classifying it
as a bucket of ashes, we need to carry it along with us even as we strive to
build a future where our votes will not only count but also be seen to have
counted.

May God save us from the hands of our rulers!

Komolafe writes in from
Ijebu-Jesa, Osun State

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Senate threatens to close Abuja quarries

Senate threatens to close Abuja quarries

The senate committee on environment have threatened to shut
down the five stone mining companies operational at Mpape, a suburb of Abuja,
for none compliance with environmental safety laws.

The threat came after the committee, led by its chairperson,
Grace Bent (PDP Adamawa state) and the National Environmental Standard and
Regulation Enforcement Agency (NESREA) paid an unscheduled inspection visit to
the quarries.

Mrs Bent and Ngeri Benebo, the director general of NESREA,
expressed dissatisfaction with the level of compliance with environmental laws
by the various quarrying companies in the area.

Some of the five stone mining companies operational in the
suburb have been blasting and crushing rocks in Mpape for over 30 years, but
none of them have an environmental impact assessment certificate or a plan on
how to remedy the environment after mining. Neither did any of the mining
companies have a corporate social responsibility project in the community.

The worst offender, according to the inspection team, was
Julius Barger Plc. They are the longest stone blasting company in the area, but
had neither an Environmental Impact Assessment certificate nor an Environmental
Management Plan. Their site also had a lake developing from their previous
mining pit which inspectors said was untreated and breeding mosquitoes.

“Can Julius Barger do this in Germany?” Mrs Bent asked the site
manager. “This is totally unacceptable in Nigeria.”

Non compliant miner

The senate committee chairman therefore gave them an ultimatum
of two weeks to develop an environmental management plan and conduct an
environmental impact assessment on the site adjourning community.

“We are giving you two week to do this or we will come back
here and shut this place down,” she said. “We cannot tolerate this; it is
totally unacceptable to us.”

Like Julius Barger, Arab Contractors and the rest of the
Chinese companies mining stones at the suburb were blasting the rock, causing
earth tremors, polluting the air with dust, and producing unsafe lakes from old
mining pits but have never conducted and environmental impact assessment on the
site.

Their workers were also not protected with safety kits, neither were they
insured. Kamel Eljilbal, who represented the management of Arab Contractors
Ltd, argued that the company had the necessary certifications; but Ihebinike
Kevin, an official of the federal ministry of environment, countered his claims
saying the ministry had no record of such certifications and neither did they
have any post mining plans from the company. The other mining companies which
the team visited also argued they had certificates and permits but could not
present them.

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Agency introduces new method to check fake drugs

Agency introduces new method to check fake drugs

The National Food and Drug Administration and Control Agency
(NAFDAC) will today, at its Lagos office, introduce a solution meant to be the
silver bullet against the monstrous fake drug business in the country.

The data collected from a three-month trial of the Mobile
Authentication Service (MAS), an SMS-based solution implemented by Sproxil Inc,
will also be discussed at the meeting with drugs manufacturers and retailers.

The innovative technology has been described as most suitable
for checkmating fake drugs in Sub-Saharan Africa, where the counterfeit drugs
business is estimated to be worth about $75 billion, because it utilises the
ubiquitous mobile phone platform.

The model is as simple as a consumer walking into a
pharmaceutical store to buy drugs, which would have a scratch panel. The
consumer scratches the panel and sends the code on it to a well-advertised
number through SMS. A confirmation message will be sent back confirming the genuineness
or otherwise of the drug. If the drug is counterfeited, the consumer is
expected to inform NAFDAC.

Anti-counterfeit
officials

This model, which will also be effective against all forms of
counterfeited and sub-standard products, will turn consumers to an independent
army of “anti-counterfeit officials,” one as big as the entire Nigerian
populace, if implemented efficiently.

The document, which was exclusively obtained by NEXT, was
prepared by a national committee inaugurated by Paul Orhii, NAFDAC’s Director
General, in June 2009.

The committee consisted of representatives of the
Pharmaceutical Manufacturers of Nigeria (PMG-MAN), Nigerian Representatives of
Overseas Pharmaceutical Manufacturers (NIROPHARM), and mPedigree, the company
marketing the product.

The committee submitted its report, Deployment of National
Electronic Anti-Counterfeiting Platform for Regulated Products in Nigeria, in
September 2009. Thereafter, Biofem agreed to use its “highly counterfeited”
product, glucophage, as a “guinea pig” and in February, NAFDAC announced a
trial project, to be implemented by Sproxil.

The feasibility of the guideline document requires several
partnership agreement and understanding among several components of the design
including telecommunication companies, drug manufacturing companies,
Information Technology Company, and NAFDAC.

However, Biofem-Spiroxil partnership has, within a shorter
period, produced an implementation platform for the technology and the trial
has received positive feedback from industry stakeholders.

For a detailed report on
this, read NEXTonSunday

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‘Lawmakers fighting Bankole are powerless’

‘Lawmakers fighting Bankole are powerless’

A member of the House of Representatives, Rasaq Adewusi, has
accused the group of ‘progressives’ calling for the resignation of the Speaker,
Dimeji Bankole, of selfishness.

Mr. Adewusi, who is the Chairman of Committee on Pension, told
journalists in Abeokuta that the group is not fighting the cause of the
majority of lawmakers and challenged them to present their allegations when the
House resumes.

He said it was ridiculous for the group to have asked the
speaker to resign when plenary has been suspended.

“As I see it, it is more of personal that is the way I see it.
You cannot just stand up and say the Speaker must resign when we have suspended
plenary session about six days ago,” he said.

The lawmaker said the group, consisting 12 members, is too small
to challenge the leadership of the House.

‘The house is the house of 360 members and with the number of
people that have gathered together as a group, I think when we get to the
bridge we shall cross it. It is just a matter of when we come together in the
house, the reason behind their asking the speaker to resign his speakership
would be known,’ he said.

Beyond the cars

Mr. Adewusi said the Speaker’s opponents are bringing up
forgotten issues in their fight against him.

“The issue of cars they are talking about has gone to rest for a
very long time. Nobody has ever returned the cars. I don’t want to pre-empt
their action, when we get to the house by June 22, we will know, they will tell
the house,” he said.

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Dubai revokes Ibori’s bail

Dubai revokes Ibori’s bail

Attempts by the fugitive former governor of Delta State, James
Ibori, to seek political asylum in the United Arab Emirates (UAE) ran into a
hitch Thursday after police authorities in Dubai revoked the bail it granted
him on May 13.

The spokesman of the Economic and Financial Crimes Commission
(EFCC), Femi Babafemi, said the commission had received official report on the
bail revocation. “I can confirm that Mr Ibori is in custody, we were briefed by
the authorities in Dubai,” he said.

EFCC sources said his arrest was based on the conviction of his
associates in UK, the protest from Nigerian authority and the threat to retrieve
the license of flight Emirates Airlines and evidence from the EFCC supporting
the fact that he fled from Nigeria to evade justice.

On what the EFCC plans to do next, Mr Babafemi said “we will
just continue to ensure that he be brought to answer questions either in Nigeria
or in the UK.”

The EFCC had declared Mr. Ibori wanted as part of its
investigation of alleged misuse of state funds while he was governor. Its
operatives were on his trail before he sneaked out of the country and turned up
in Dubai.

The former Delta State governor was arrested in Dubai by the
police on the orders of the International Police (INTERPOL). The operation is
linked to the British Metropolitan Police, who has been fighting to have Mr.
Ibori extradited to the United Kingdom to face other fraud charges.

Early this week, his sister, Christine Ibori-Ibie, and his
female friend, Udoamaka Okoronkwo, were jailed by a UK court after they were
found guilty of all charges of money laundering and mortgage fraud.

The women were also found to have helped the former governor
move an estimated £70 million worth of looted funds through several London
banks during his reign in office from 1999 to 2007.

Mr. Ibori, who was declared wanted by the anti-graft agency
weeks ago, in connection with the illegal disposal of 528 million shares
belonging to Delta State in Oceanic Bank, refused to turn himself in and
thwarted all efforts by the EFCC and the Nigeria Police to arrest him.

A security source, however, said the revocation of Mr. Ibori’s
bail, following which he was clamped into a Dubai jail, was only one more step
in the efforts of the MET to take him to London.

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Yerima cannot continue in Senate, says NBA

Yerima cannot continue in Senate, says NBA

The Nigeria Bar Association has urged the Senate to look into
the case of Sani Yerima’s child marriage, saying that he cannot continue to sit
in the hallowed chamber of the Senate, contributing in the making of laws which
he claims do not bind him.

The Bar said attempts being made by some individuals and groups
to trivialise Mr Yerima’s disgraceful act are also political.

“We state without any equivocation that the act of contracting
any arrangement to satisfy the hedonistic urge of any individual is criminal,”
Rotimi Akeredolu, the national chairman of the association, said. “It becomes
even more worrisome to note that these people strive to hide under a popular
religion which preaches continence.”

The association also berated Mr Yerima’s manner of “clinging to
a supposed aspect of his religion, which allows a child barely out of the
cradle to warm his bed. The abiding injunctions on honesty, philanthropy and
continence, among others, on which all religions stand, are of little
significance to this man.”

While referring to Mr Yerima’s argument, when he was invited by
a child protection agency in Abuja, that he only recognized Sharia law and not
whatever the federal law said on his action, the NBA leader said, “The position
of the Bar is that this man cannot continue to sit in the hallowed chamber of
the Senate, contributing in the making of laws he does not believe in.

“Characters like this man should not be allowed to hide under
religion to perpetrate acts inimical to the wellbeing of the citizens of this
country, most especially children who must be protected by reasonable adults.
The news that a former child-wife was divorced for him to marry a new child, as
his fourth wife, in line with what he perceives as his religious obligation,
must rile the sensibility of decent people.”

The leadership of the Bar, specifically referring to Micheal
Aondoakaa and the ongoing litigation against him, assures Nigerians that it
will not shield any member of the NBA who has been accused of any wrong-doing.

“It is important we state this in the light of the recent
judgment delivered by a Federal High Court in Calabar on the suitability of the
immediate past Attorney General of the Federation, Mike Aondoaaka to hold
public office or any position of responsibility.

“We hasten to state, without gloating, that the Bar feels
vindicated on its positions on national issues which certain political jobbers
twisted to paint us with the brush of partisanship undeservedly. We expect more
of those whose activities have brought this country to this sorry pass to be
exposed,” Mr Akeredolu said.

Oyo crisis

The Bar, however, warned Goodluck Jonathan to check recent
political attack on the House of Assembly in Oyo State by some hoodlums.

It said that the action “is a litmus test for this
administration. It is treasonable to employ the force of arms to disrupt a
legislative process. It is akin to waging a war against the people. These
political charlatans got away with all manner of atrocities under Olusegun
Obasanjo. Mr Jonathan must follow his words with deeds which give hope.” The
NBA, however, hailed the appointment of the new Independent National Electoral
Commission boss, Attahiru Jega, and urged him to start on a clean slate.

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