Nigeria Content Online

No systemic risk in the banks

Some finance experts have said that the losses declared by some
of the banks in their December 2009 common year end result was not an
indication of a systemic risk in the industry.

According to the experts, majority of the concerns in the
industry have been captured in the joint audit carried out by Central Bank of
Nigeria Nigerian Deposit Insurance Corporation special audit of the banks last
year.

Akintola Akinbamidele, finance research analyst, Renaissance
Capital, West Africa, said there is no systemic risk in the industry.

“A lot of the concern in the banking sector have been captured and
brought into perspective during the CBN/NDIC audit in September 2009,” he said.
“Our outlook is fundamentally positive as we expect real GDP growth in Nigeria
to accelerate in 2010, and now that the expansionary budget has been approved
and the Asset Management Company bill has been passed while oil is still
trading at an average of 80 dollars to the barrel.”

Mr. Akinbamidele said a survey of the banks that have released
results, revealed that a majority of them were in the green.

“First Bank declared a strong set of numbers in the first
quarter, (1Q) and a lot of the other first quarter results from banks have been
in the green,” he said. “We expect concerted effort towards loan recovery in
2010 by the banks and we expect that Nigerian Bank’s 2010 profit forecasts are
well supported, as we forecast robust loan and deposit growth, a wider net
margin, an improved efficiency, lower loan loss provisions and a lower tax rate
of 20 per cent.”

Except for a few banks, majority of banks have declared losses,
especially in their December 2009 common year end results, raising concerns as
to the actual state of the banks and their ability to scale through after such
provisioning.

However, most of the banks have declared profits in their
released first quarter results, in contrast to the losses declared last year,
attributing this mainly to the success in the recovery level of otherwise
non-performing loans.

Diamond Bank Plc released its 2009 results, revealing a loss
before tax of N12.4 billion for the period, due to large one-off provision,
compared to profit before tax of N17.3 billion for the comparable prior year
period (December 2008).

Access Bank also released its 2009 results with a loss before
tax of N3.5 billion Naira.

Eco Bank Nigeria Plc also released its audited results for the
common year end revealing a loss before tax of N5.944 billion and a loss after
tax of N4.588 billion, following a tax rebate, among others.

Managing the risk of
loan-loss provisioning

Razia Khan, regional head of research, Africa Head of
Macroeconomic Research, Standard Chartered Bank said recent measures in
addressing banks’ loan provisioning have included a review of existing
prudential guidelines, in particular the one per cent general loan loss
provisioning regime which was considered to be too pro-cyclical.

“At the end of last year, in order to lessen the burden of the
crisis on banks, the CBN announced that it would be waiving the 1 per cent
general loan loss provisioning requirement for a year,” she said.

“The regime is now being refined further. According to the
monetary authorities, a strong argument exists for implementing a different
provisioning regime for small and medium enterprises financing, agriculture,
and project finance that counters the pro-cyclicality in existing provisioning
guidelines.”

Ms. Khan also added that reforms are aimed at spreading risk
over a longer period of time, which should encourage more lending to the real
sector, despite the economic cycle.

“A framework for collateral adjustments to be taken into account in the
provisioning regime is also being developed,” she said. “With realisable
collateral, transparently valued at regular intervals, the hope is that a more
sound banking sector that is less subject to the volatility seen in the recent
past -when record loan-loss provisioning wiped out the capital of several
banks- will finally emerge.”

Money

Stock market rally continues

Stock market rally continues

The stock market ended the past week in the green zone with
gains that are mostly attributed to buying pressure of investors. The activity
during the three days of trading in the week was a continuation of the market’s
adopted pattern since the beginning of the year, as trades were dominated by
speculations that were followed by quick profit reaping transactions.

Last week was particularly eventful following the death of
President Musa Yar’Adua, as Goodluck Jonathan became the nation’s substantive
president. Also, the Asset Management Company (AMC) Bill was passed by the
Senate on Wednesday. The bill is expected to unburden banks from toxic waste
and free their balance sheet through purchase of the bad loans, thereby
enabling banks to play their financial intermediation role effectively. With
this new development, we expect further stability in the capital market.

Market review

Activities in the stock market have been upbeat since the
beginning of the year as investors renewed optimism in the equity market due
largely to hopes that recent measures by Central Bank of Nigeria (CBN) and
other market regulatory bodies would sustain market recovery.

Positive earnings results of companies as released last week
reaffirmed hope for a sustained rebound, even as more investors had reasons to
turn positive and put money into the market.

In the past week, the NSE All-share index rose by 103 basis
points to close the week at 27,503.36 points.

Since the beginning of 2010, the market capitalisation has
gained more than 30 per cent. It closed on Friday at N6.65 trillion. Stocks
edged higher on Friday as investors looked to extend a strong run that has left
major indices up 0.38 per cent for the week. The current bullish trend should
continue in the months ahead. However, investors should exercise caution as the
market may witness minor correction phase.

During the week, both the market capitalisation and the NSE AS
Index gained 0.38 per cent respectively. So far, the market has recorded a
YTD-high market capitalisation of N6.78 trillion, representing a YTD yield of
33.33 per cent. Overall, the market traded a total of 1.75 billion units of
shares, valued at N17.11 billion in 25,710 deals.

The Banking sub-sector remains the most active (measured in
terms of traded volume) as it recorded 836.56 million shares valued at N9.42
billion exchanged in 11,033 deals while the Insurance sub-sector was second
with traded volume of 389.61 million shares valued at N349.39 million in 1,802
deals.

Corporate actions and
results

In the past week, ECOBANK Nigeria Plc released its full year
trading result to the floor of the Nigerian Stock Exchange. The company
declared a Gross Earnings of N59.864 billion representing an increase of 8.54
per cent from previous year’s trading result. The company also posted a Loss
After Tax of N4.588 billion.

Furthermore, ECOBANK also released its interim report for the
period ended 31st March, 2010 (First Quarter). A Gross Earnings of N13.703
billion was recorded, while a Profit After Tax of N1.071 billion was declared.

JULIUS BERGER Plc also released its interim report for the
period ended 31st March, 2010 (First Quarter) to the floor of the Nigerian
Stock Exchange. Julius Berger, which has 1.2 billion units of shares
outstanding, declared a Turnover of N31.414 billion and a Profit After Tax of
N780.959 million.

Similarly, JAPAUL Oil & Maritime Services Plc released its
interim report for the period ended 31st March, 2010 (First Quarter) to the
floor of the Nigerian Stock Exchange. The company, declared a Turnover of
N1.615 billion and a Profit After Tax of N425.515 million. The table below
shows full details of companies’ results and performances released during the
week.

Market outlook

Earnings projections of companies suggest that earnings should
continue to improve over the next couple of quarters. Earnings that exceed
expectations have been shown to be conducive to higher equity prices.

Given extremely low levels of interest rates, stock market activities will
surge higher, thereby creating more bullish sentiment.

Money

Greece, the Imf and us

Greece, the Imf and us

The announcement on
23 April 2010 by Greece’s Prime Minister, George Papandreou, that his
country would draw on emergency aid from the IMF and the EU confirmed
fears about the toxicity of that country’s sovereign liquidity, and
solvency issues.

The subsequent
downgrade by Standard & Poor’s, a rating agency, of Spain’s
sovereign debts reinforced concerns that one consequence of Greece’s
incontinence might be what the IMF referred to in its April 2010 Global
Financial Stability Report (GFSR), as “a full blown and contagious
sovereign debt crisis”. Together with the EU (contributing €30 million
into the rescue fund), the Fund is expected to provide €15 million to
help the Greeks deal with the output-depressing effects of a budget
deficit clearly in excess of 15% of GDP.

The derision with
which the Greek government’s decision was greeted in certain quarters
in Greece was understandable when you remember that until recently, the
IMF was perceived in certain quarters, especially outside that country,
as a tool in the hands of imperialists and allied colonialists bent on
keeping Africa and Africans in perpetual bondage. Within the context of
the “Cold War”, this made plenty of sense. Africa is (still) home to
some of the most important mineral deposits in the world, and Western
strategists and their spooks would have been loath to have these fall
under what was then the Soviet sphere of influence. The Mobutu Sese
Sekos and Jean Bedel Bokassas were thus no accidents. Their buffoonery
was okay, so long as it guaranteed Western access to their countries’
primary resources. This was in the sixties and seventies.

Much later,
conspiracy theorists in this country, baffled by the domestic economic
crawl, and aware more than most of the tremendous potential of this
country, approached the 1980s debate over accessing the Fund’s bridging
facilities in the knowledge that it could not be a good thing. After
all, the same Western economists behind the Fund had persuaded
successive governments in the country to borrow massively against our
crude oil earnings. The heavy hand of the West was evident once again;
its agents and privies scarcely concealed themselves, and the IMF’s
nostrums were the blunt instrument with which we were to be bludgeoned
financially. In the end, this economy made the painful transition from
being under-borrowed to debt peonage, without anything to show for it,
besides the fat Swiss accounts of our leaders – elected and usurpers.
To the argument that the country was mismanaged by its indigenous
rulers, you got told that these were “comprador bourgeoisie” in cahoots
with “Western imperial circles”. Somehow, for “western imperial
circles”, Africa, and not Asia, had to be restrained from developing if
the global balance of forces was not to be disturbed. So while South
Korea, Taiwan, Malaysia, Singapore, Chile, etc. all under the heavy
hand of the West, saw material increases in net welfare, Nigeria, and
places like Indonesia saw a sad reversal of fortunes.

Cleaving to this
logic, what are we to make of Greece and its recourse to the IMF’s
bridging loan? Clearly, the Fund cannot mean thereby to under-develop
the Greek economy? The Greeks are not just Caucasians. Theirs is the
cradle of much of the West’s intellectual heritage. Unfortunately, they
share some bad habits in common with some of our best leaders on the
continent. Over the years, Greece has spent its way into trouble. Not
just spending more than it earned, but spending unsustainably. Sadly,
the €45 billion loan package might just help repay some of Greece’s due
debt, and finance its budget deficit until December.

Over the
medium-term, Greece will have to restructure: cut down on spending and
find ways of increasing its revenue stream without hampering the
outlook for output. The people will have to bear much of the cost of
any such adjustments.

Governments will
struggle to remain popular, as they define growth paths that take full
cognisance of the need to meet debt obligations as they fall due. The
IMF will of course insist on Greece meeting all its debt obligations,
and pursuing policies that place public financing on a sustainable
basis. There will be much pain, but it would not have been caused by
the Fund, or by its strong medicine. It would, instead, as with us, be
the result of inept rule by past governments in Greece.

Money

A night of hits and misses

A night of hits and misses

It was a night to
remember for everyone at the ‘Night Out With the Arts’, organised by
the Society of the Performing Arts of Nigeria (SPAN). The event took
place on April 30 at the Coral Reef, Ikoyi, and allowed the audience
the honour of judging the presentations which cut across music, comedy
and dance.

As the curtains
were raised on the monthly show’s second edition, it represented SPAN’s
way of recognising the talents that abound across the city of Lagos.

Cool FM on-air
personalities Manny and Amaka anchored the event, which kicked off with
a rendition by Tee Mac. The flutist and former PMAN president performed
to the accompaniment of a drummer, a guitarist and a pianist.

He preceded his
performance by reeling out statistics about the power of Nigerian
music. “There are about 400,000 professional musicians and about 1.2
million amateur musicians,” he said. “What is missing is the money,
because the talent is already here.”

He took a swipe at
young people’s reactions to his music, just before he got caught in the
rapture of his wind instrument. “Young people call it old school, I
call it good music,” he said. Olufunmi, a gospel musician and Vice
President of SPAN, sang the second verse of our National Anthem. She
also held the audience spellbound with her voice as she sang a popular
gospel tune.

In her welcome
address, president of SPAN, Sarah Boulos, said that the organisation,
in their celebration of the family, provided a bouncing castle for
children at the event. She also mentioned with excitement that the body
was starting a talk show about the talent series on Cool FM.

Night of musical “talents”

Ten acts performed
on stage for only three minutes each, as the programme did not start at
the scheduled time of 7pm. Uche Agbai showed professionalism as he sang
and strummed his guitar backed up by a piano. He sang “Fast Lane,”
which he had composed after losing a friend.

Next up was a
dance by SPAN which reminded the audience of the Fame television series
that was popular in the 80s. The group danced to the Fame theme-song
and a slower-paced track, switching their body movements in time with
the music. Led by Nnamdi ‘Ice’ Nweke, the dance director of SPAN, the
presentation showed an adherence to detail, as they kept in sync with
the music. The evening would, however, come up with a few rough edges.

Hall of shame

The first category
of undiluted torture began with the clarinet-bearing Natural Beekey,
who played the instrument off key, as he struggled to accompany a Sunny
Ade hit track. Next on the list of pain was a trio called Unbreakable
Unit. Following the usual “Naija” swag-induced style, the group mimed
to one of their tracks. The poor production quality made it almost
impossible to hear what the musicians where singing. Cold Flames
rounded up the first round of musical display with a Yoruba rock song,
which had the crowd clapping and whistling in appreciation.

At the end of the
first session, Tee Mac was first to reach for the microphone as he gave
his own verdict. He advised the ‘out of tune’ Natural Beekey to get
more lessons on playing the clarinet. Tee Mac noted that though
Unbreakable Unit had the moves, they lacked the coordination and force
needed to make a successful hip-hop act.

Though the
audience showed appreciation for Cold Flames’ performance, Tee Mac said
the artist used the most basic keys for his performance and needed to
improve on his talent.

The night moved on
with more criticism from the audience after the next three acts. There
was another interlude with Sons of Liberty, a dance group under SPAN
that has made it to the finals of the Malta Guinness Street Dance
Competition. They entertained the crowd with their energetic and
acrobatic dance steps, as they danced to a medley of songs. A group of
comedians tried to crack the ribs of the audience who seemed to slowly
lose interest in what was happening on stage and were already trickling
out of the venue. The comedians did no better than most of the
musicians, who were reminded by Sarah Boulos not to mime their songs to
backing records, but sing with their voices, so as not to camouflage
any musical deficiencies.

Lessons learnt

The exposure could
help improve the evening’s 10 acts, but in keeping the talent show open
without any form of screening, the audience is left to accept whatever
fate brings on stage. The next show holds on the last Friday in May.

entertainment

Next Rated artists gear up for music prize

Next Rated artists gear up for music prize

Credibility is key
to the Hip Hop World Awards’ (HHWA) choice of winners. The Awards team
said this much during a courtesy visit to the NEXT newsroom on Monday,
May 3. Accompanied by the nominees in the Next Rated category of the
awards, their mission was to acknowledge the support of the media in
their operations.

The Next-rated

From the Hip Hop
World Awards team were founder and executive producer of the awards Ayo
Animashaun, Kingsley James, James Silas and Nike Fagbile.

Presenting the
team, Adekunle Ayeni of AYENI Entertainment said, “Our focus here is to
share the idea and the dream with you and see how we can move the dream
forward.” It was the first stop in a series of scheduled visits to
media houses across the country.

“What we’ve done is
to bring all the nominees for [the NEXT Rated] category. This is about
the most important category at the award. It is not the biggest
category but it is about the most important because (it features)
talents who are just on the verge of breaking out big. It is the only
category that has a prize: a brand new car.”

In the category are
dancehall star General Pype, Jesse Jagz (younger brother to MI and now
an artist in his own right), D’ Prince (younger brother to top producer
Don Jazzy of Mo’Hits), Skuki and female rapper Mo’Chedda.

Going global

The organizers also
sought the continued support of the media towards delivering a
world-class awards ceremony. James Silas of the awards publicity and
marketing team said, “Like every award out there the HHWA are not
properly funded. We have great ideas, we have things that we think will
blow everybody’s mind but we don’t have the support most of the time,
like we desire from the corporate world.

“The MTV awards,
the Oscars that you see and you applaud so highly have very serious
budgets behind them and if we have corporate people come together to
support us, we’ll be able to put (up) that kind of award in Nigeria,
irrespective of our infrastructural underdevelopment, and put Nigeria
on the map. You’ll agree with me that these gentlemen (and lady) have
put Nigeria on the map much more than most people on the other side of
the world and so they need all the encouragement that they can get from
the awards, from people like you and from the reporting that you do.”

Animashaun,
publisher of the Hip Hop World Magazine, said he was very excited about
the Next Rated category. “The way our industry is structured, a lot of
young talented artists, who want to achieve success in entertainment
don’t have the right opportunity. Talent is not enough in Nigeria. This
platform is very important for us to actually really identify some
promising artists in the year in review and encourage them and reward
them. When I look at the face of nominees sometimes, I just wish they
were all winners. But they are winners, that’s why some of us don’t say
“and the winner is…,” we say “the award goes to…” But once you are
nominated you are a winner already.”

A friendly category

For the nominees it
was a good publicity run and a form of encouragement for and
endorsement of their budding careers. Sole female member of Knighthouse
Crew, Mo’Chedda said, “It’s difficult when we as artists work so hard
(with little recognition) and listening to what [has been] said just
touched me that, ‘Okay, there’s someone listening.’ I’m going to keep
working because even if I don’t win this award, I’ve been acknowledged.”

Speaking mostly in
his Jamaican Patois ‘Champion’ singer General Pype encouraged all the
nominees to “keep the champion flag flying.”

Hot on the scene
with his debut album, ‘Jagz Of All Trades’, the hip-hop artist Jesse
Jagz, “When we went for the nomination and I saw the other names there,
I cried. I was depressed for a very long time because I think for me
this has been the toughest Next Rated category. It is an honour to be
on the list. It’s a lot of work for those of us who have been nominated
whether we win or not. Also I think it’s the only award where you get
to prove you are worthy of the award after you have won it.”

Mo’ Hits D’ Prince
considered it “a thing of joy for us to be nominated in the category
because we don’t think that there are people who actually watch and
listen to what we do.” Hinting at the absence of bad blood and the
nominees, D’ Prince said, “From General Pype to Jesse Jagz, they are
all my friends. I just feel that it’s a friendly category.”

For the brothers
Skuki, their selection was a seal of approval. “To whom much is given,
much is expected. This goes a long way for us and we see it as
encouragement.” The duo spoke of their disappointment at not being
invited to the 2008 edition because then they were relatively unknowns.
Their determination however drove them to improve on their act, hence
their nomination for this year’s awards. “It’s a dream come true,” they
said.

Street credibility

Whether their dream
of winning comes true remains to be seen as the winner of the Next
Rated category is determined solely by music fans. Animashaun said,
“It’s up to your fans out there to vote. Learn from other people’s
experiences. Don’t feel too cool that you are known. Some people just
make the mistake and take it for granted. Whoever wins, wins.”

To all those who
might want to doubt the credibility of the winner, Animashaun was quick
to point out that while some categories are determined by popularity,
others depend solely on the quality of the nominated material. “We
strive to be credible at what we do and at every opportunity I have
I’ll try to remind people that in 2006 when Don Jazzy won ‘Producer of
the Year’, he was new in Nigeria. OJB had overwhelming popularity and
rather than consider popularity, we checked the material in the year in
review. Don Jazzy won and even when he won the award, he was so
embarrassed that he dedicated the award to other artists in the
category,” Animashaun said.

“Years down the
line, you can point to Don Jazzy and see whether he’s a good producer
or a bad one, so for us, we don’t care about what is popular, we care
about what is credible.”

Omawumi, Asa and Wande Coal are just some of the previous winners of the category whose careers have since skyrocketed.

In the case of MI,
Animashaun said many of those who initially felt the lad was not worthy
of the ‘Next Rated’ award later called the organiser to praise MI’s
talent. “This category, we are not in charge (of), our fans (are), so
please let them vote for you.” according to the organisers, fans can
vote via SMS or online.

The artists in the
category already see it as a “friendly” one since most of them have
already featured in some form of collaboration or the other. It is
however up to the fans to vote their best man or woman in a credible
contest of the most popular upcoming artist.

The Hip-Hop World Awards hold on May 29 at Eko Hotel and Suites, Lagos.

entertainment

Untitled

Untitled

YOU AND THE LAW: You can start from a franchise

YOU AND THE LAW: You can start from a franchise

Starting a business
is fraught with peril; some business, some personal and some legal. The
most important business pitfalls to avoid based on my perspective in
working with a large number of start-up companies over the years are
lack of technical and administrative know how. Falling into any one of
these traps can mean the difference between success and failure or the
ability to attract money to fund the growth of the business.

A lot of
entrepreneurs have sellable business ideas but lack the operational
methods of executing these ideas. Some, whose businesses are
flourishing, become choked with the burden of monitoring when their
businesses expand. The drive to be one’s own boss can blind some
entrepreneurs to the pitfalls of owing a business.

Entrepreneurs can
reduce expected pitfalls in starting a business by identifying with
similar successful business and buying into it. I am arguing for
franchising. I have noticed few Nigerian entrepreneurs know about
franchising and those who know about it are not interested for the fear
of slaving no end for the franchisor.

Franchising means
buying into an already established business, opening a storefront or
territory under the name of that business and operating within the
boundaries established by the franchisor. It is a method a company uses
to distribute its products or services through retail outlets owned by
independent, third party operators. The independent operator does
business using the marketing methods, trademarked goods and services
and the “goodwill” and name recognition developed by the company. In
exchange, the independent operator pays an initial fee and royalties to
the owner of the franchise. The company that grants the independent
operator the right to distribute its trademarks, products, or
techniques is known as the franchiser. The independent, third party
business person distributing the franchiser’s products or services
through retail or service outlets is called the franchisee.

All over the world
people are choosing to run franchises instead of floating new
businesses as with franchising all the basic market surveys, research,
and business plans are already in place and working. So, entrepreneurs
young and old choose to become franchises of a running and profitable
chain and be their own bosses. If working for a company is not your cup
of tea then consider franchising as a business module, it has many
benefits:

1. When you take up
a franchise you are taking on a business that is already flourishing.
The business module is complete in all respects and any problems have
been ironed out by the person who first established the business. What
you get is a ready made package that just needs to be run.

2. By franchising
you get not just a business by all the support you need in terms of
marketing, customer relations, accounting, staff training and
deployment, as well as in the day to day running. You become part of a
local or global group that networks and interacts on all aspects of the
business.

3. Solutions to
hitches or problems encountered in business are always on hand, the
franchise chain will lend complete technical support and any other
assistance required. The chain will function as a single unit as far as
technology, machinery, group branding, and advertising and so on is
concerned.

4. The progress or
expansion in the business will occur as a collective group and
professional consultations and so on will be carried out for the whole
group of units. This means the think tank is much large as also the
resources.

5. Aspects like
future plans, product research, buying power, expansion of activities,
market surveys, and more will be done as a chain and so you will just
reap the benefits. The risk will be collective and not individual as in
other business modules.

6. You will be your
own boss and be working towards securing your own future. The devotion
and long hours will help you reap many benefits and respect.

7. With franchising
your staff would be trained by the franchise major and so what you will
get is people who can function well without constant supervision and
watching over. As the world innovates your business will keep abreast
of the changes.

World wide business
gurus advice that “a franchising business module is the safest and most
dependable choice in business entrepreneurship.” A franchise can make
dreams come true, of owning and running your own business without the
accompanying heartaches.

As with anything,
there are things you gain and things you lose. An independent
franchisee often has to follow the guidelines set forth by the
franchisor

Franchising your business also can be a way of making money,
expanding and reducing aches that come with business expansion. I
advice established Entrepreneurs to consider expansion by franchising
their businesses. Franchising is the way to go for start up
entrepreneurs especially the once without technical know how.

ASSEMBLY WATCH: A vote for two-party system

ASSEMBLY WATCH: A vote for two-party system

The quest to streamline the political space has returned to the front burner. Seven former governors stole quietly into the National Assembly last week to make a case for the reduction of the number of parties in the country, which now stands at 64.
Abdullahi Adamu, Victor Attah, Adamu Aliero, Peter Odili, Chris Ngige, Achike Udenwa and Abubakar Audu met separately with the senate president, David Mark, and the speaker of the House of Representatives, Dimeji Bankole, during which they canvassed for a two-party system.
The former state executives say the multi-party system that currently obtains in the country, does not give room for the emergence of healthy competition among political actors. They exploited the ongoing review of the 1999 Constitution and the 2006 Electoral Act by the federal legislature to make known their views.
Incidentally, they came two days before the clause on the political parties was to be considered by the members of the lower legislative chamber, but for the demise of former president, Umaru Yar’Adua.

One cannot say with certainty whether this agitation was selfishly motivated or not. For the first time, these former governors, most of whom left office nearly three years ago, came under one umbrella to canvass a position on issues of national interest. It is just possible that in these “last days” preceding the general elections, the former governors are seeking relevance so as not to completely lose out.
A closer look at these once powerful emperors in their respective states shows they had no option, but to engage in this new political move. Some of them are today jobless. Check out the list.
Of the lot, it is only Mr. Adamu that has a political job as the secretary of the PDP Board of Trustees. Even so, he has not been finding it easy. In March, the Sarkin Yakin Keffi, who is eyeing a seat in the senate, was harassed by opponents who took him to court over public funds he allegedly pocketed while in office.
But it is necessary to ignore these messengers, whatever their motive is, and concentrate on the message. Truly, the multi-party system makes the political space more open for participation of the citizens, the desired result cannot be said to have been obtained.
Rather than being institutional components of liberal democracy and competitive electoral process, it does appear the political parties have become avenues for some “smart” Nigerians to line up their pockets with public funds. Today, some, if not, all of the 55 parties are not people-oriented. Indeed, most are merely in the portfolios of their leaders.

Removing the party from the person

Let’s look at the beginning. Up to the First Republic, Nigerian political parties were regional and ethnic political parties. Regrettably too, they were formed around charismatic personalities who were also largely idolized.

For instance, the NCNC was built around Nnamdi Azikiwe, AG (Obafemi Awolowo), NPC ( Ahmadu Bello); NEPU (Aminu Kano); UMBC (Joseph Tarka) and others.

In the 2nd Republic, the situation was not radically different. The UPN was clearly a reincarnation of AG and dominated the Yoruba race, where Mr Awolowo hailed; NPP was peopled more by the Igbos, Mr Azikiwe’s ethic group; while the National Party for Nigeria, reincarnation of NPC, was dominated by the North.

The PRP was seen as a reincarnation of NEPU while GNPP and NAP (which was later registered in 1983) were built around Waziri Ibrahim and Tunji Braithwaite, respectively.

In the aborted third republic, though many political association emerged through yet deregulation process of party formation, the then Babangida military administration, determined to eliminate ethnic influence in the parties, decreed two parties into existence – National Republican Convention (NRC) and Social Democratic Party (SDP) “a little to the left, and a little to the right.” The country returned to the deregulation of the process of establishing parties at the beginning of the current Fourth Republic, which led to multi-party system. Attempts to regulate the number of political parties in the country were nullified in 2002 by the Supreme Court, which in its judgement asked that qualified parties should be registered.

Facing the PDP

Following the judgement, more parties were registered. This year alone, many have joined the crowd thereby frustrating the desire of many that two or three stronger parties would evolve to dominate the political process as in the US and UK. As it is, only the PDP pretends to have a national spread among the existing parties.This, therefore, is an opportunity to initiate a serious and durable political party re-engineering by adopting a two party system.

The hint dropped by the Speaker, Dimeji Bankole, while receiving the former governors, that the House may prune the number of parties, is a welcome development. The chamber should, therefore, look in the direction of the two-party system.The system, it is believed will eliminate ethnic pluralism associated with the 1st and 2nd Republics, introduce genuinely national, ideological-based and issue-driven parties as well as provide strong, credible and virile opposition, which is a necessary component of democracy. Above all, it may just be a catalyst for credible elections like that of the June 12, 1993 presidential elections that was adjudged the best so far in the country.

Meritocracy is it, Mr. President

Meritocracy is it, Mr. President

Here is a thought, President Goodluck Jonathan: deliver on your promises.

Implement electoral reform and give us an efficient and functional power sector so that our economy can grow.

It is true that
the death of former president, Umaru Yar’Adua is likely to add to the
troubles currently bedeviling the ruling People’s Democratic Party
(PDP) to which you belong. But that should not worry you. Their
so-called gentleman’s agreement on rotational presidency is on the line
and squabbling is sure to follow any attempt to junket this inane
accord. Your refusal to rule yourself out of the race for office in
2011 is not likely to help matters.

As an incumbent
president in a country like Nigeria, where the constitution has vested
enormous power in your hands, you are almost omnipotent. The
appointment of the umpire for the 2011 elections, for example, rests
with you. So too do some other key appointments, such as that of vice
president and Justices of the Supreme Court, the final arbiters of any
dispute in our land including election petitions.

When we add to the
mix the fact that you are from the Niger Delta – the region that
generates most of Nigeria’s wealth but which has never produced any
president for the country – and that people of this region see your
ascendancy as a once-in-a-lifetime opportunity that cannot be
squandered, you will begin to understand why you are holding all the
aces.

You are in a
position to take on those in your ruling party who insist that they
want to adhere to a rotational system that has no place in a democratic
society, if you choose to.

My advice will be to not bother.

You should not
spend the limited time you have in office engaged in politicking. The
surest way you can remain in office is by delivering on the promises
you have made thus far to Nigerians.

Reform our
electoral processes so that our votes begin to count. Ensure that we
begin to utilise the vast resources we have – from gas and coal to
solar – to power our homes and workplaces and you will have nothing to
worry about.

The death of the
former president means the country is emerging from the twilight zone
it entered. It has removed the uncertainty that was hanging over your
presidency and should allow all those politicians who have been hedging
their bets to do that which they do best, quickly switch allegiance and
line up behind you, the man in power. So, your presidency, which
started on a shaky note, has a more solid foundation. All that is left
is to deliver to Nigerians.

Do not get
distracted. There are those who will want you to waste precious time
writing notes to your ministers, so they can be get contracts. Others
will want to lobby you for plump appointments into various government
agencies. Another bunch will try to convince you that you must find
money and dole it out to them so they can begin campaigning for your
election in 2011. They will not care how you lay your hands on the
funds, whether legitimately or illegitimately.

Politicians will try to convince you that you need to make less than kosher deals for your survival.

But all that will be hogwash as long as you fulfill you promises.

A robust electoral system will mean you cannot be rigged out of office if Nigerians decide you are their man and vote for you.

Please remember
that just as being from a certain region in itself should not be an
automatic ticket into the highest political office in the land,
incumbency too should not automatically lead to a mandate. How you
perform in office over the next one year should be the determinant of
whether you are fit to run for office and if, indeed, Nigerians will
elect you. If you want to remain our president beyond 2011, you should
begin, today, to earn those votes.

The Naked Man

The Naked Man

Last week, I saw a
curious thing. It was seven in the morning and most people were
standing patiently getting ready for work. Our morning mooning was
disturbed by a loud shout. From a building along the road six men ran
out racing in different directions.

There was little to
draw attention to five of the men. They appeared as well dressed as
most of us-if indeed slightly better. It was the sixth man who drew our
attention and curiosity. He was running just as hard as the other five.
He appeared to be using all the muscles in his body. We could clearly
see this because he was naked.

Last week, I ran
into a disturbing thing. It was barely seven in the morning and I was
standing on the road wondering if I would again be late for work. My
morning musings was disturbed by a loud cry.

From a building
across the road six men rushed out running in different directions.
Five of them were running away and the last was chasing. It was the
last who drew our attention. We were mildly amused about the fact that
he was naked. We were greatly disturbed that his cry-which had drawn
our attention-had been the words “Thief! Thief!”

Last week, I ran
into a shameful thing. I was standing on the road wondering how long I
would have to wait for a bus when a cry of anger broke me from my
reverie. From a building close to me, six men ran out in different
directions. The first five were fully clothed. The last man clearly
wasn’t. Three of them raced in my direction with the naked man in
pursuit. He screamed the words “Thief. Thief” as he raced after them.

For some funny
reason no one seemed to react. I watched in stunned silence as the
thieves ran by me. I didn’t do anything. They were there. I could see
them. I could touch them. I could have easily tacked one of them. And
yet I failed to do something. For some funny reason, I was stunned into
inaction by the urgency of the situation that required action. I, and
about 60 other waiting people along the road.

Last week, I ran
into a brave thing. A man had been having his bath when an incessant
knock on the door forced him to address the unnamed visitors in nothing
but a towel. There were five of them waiting for him. Holding a bag
that seemed to hold the tools of the trade, they announced that they
were PHCN officers.

By the time, the
towel clad man realised that this was not true; they had forced their
way into his home and pulled out knives. He was slashed in his arm and
hacked across his forehead with a machete. While he stood there in
bloodied shock he was asked to lie down and put his hands behind his
back. He didn’t. He instead charged at two of them and ran through the
open door leaving his towel behind. He resisted and because of that, he
probably lived.

Last week, I ran
into an inspirational thing. Five thieves were foiled by a man who
refused to be robbed at 7 in the morning. Sensing their mission had
failed, they fled in different directions. Their mission might have
been over but those of their victim had only begun. With nothing on but
his bare skin brightly streaked with blood, he raced after them.

His face was
covered in blood and he probably had difficulty seeing. There were
blood prints following his every step. He was hardly the tallest of
men, easily dwarfed by the thieves. He had no shoes on. He had no
clothes. He had little to spur him on except the injustice of his
morning events. Few might have stayed to weep about their troubles.
This man didn’t. He ran. By God, he ran.

Last week, I
witnessed a familiar thing. A thief was once again caught on the
streets. He wasn’t arrested by policemen but by the man whom he had
tried to rob. With nothing on except his skin and honour, a naked and
bleeding man ran after a thief for almost a kilometre before tackling
and pushing him into the gutter. It was only then that people rushed to
his assistance.

Last week, I witnessed the painful picture of the present. I
witnessed the ugliness of the country brought sharply to painful light
at 7 on a Tuesday morning. But within the vista of gloom and apparent
despair, a naked man, running the length of a mile, brought to fore the
vision of hope and the promise of a better future. It is a vision that
I look forward to living.