Archive for nigeriang

Groups oppose execution of prisoners

Groups oppose execution of prisoners

Last week, the National Economic Council, made up of state governors and federal officials, backed the execution of close to 300 prisoners presently on death row, purportedly to reduce congestion in the jails. But human rights groups and legal activists have been quick to oppose this.

In 2009, the minister of foreign affairs, Ojo Maduekwe, told a meeting of the United Nations Universal (human rights) Periodic Review that Nigeria has 227 prisons with a combined capacity of 47,815 inmates. Most of the prisons are overfilled with inmates who are mostly awaiting trials.

The governors’ decision appear to be a reversion of the semi-official moratorium placed on execution of convicts – with the last official execution dating back to 2002.

Death to the people

“It was agreed that those people who have been condemned should be executed accordingly,” said Theodore Orji, governor of the southeastern state of Abia, after the meeting.

The Nigeria Death Penalty Group (NDPG) has, however, faulted the governors’ decision. The group, at the weekend, urged the state executives not to implement their decision, asking them to follow universal trends against the use of death penalty.

“The statement of the executive governor of Abia State is in no doubt a threat to the country’s unofficial moratorium,” an official of NGPG, Chino Obiagwu said.

The NDPG is a loose network of groups and individuals committed towards the abolition of the death penalty in Nigeria, convened by Legal Defence and Assistance Project.

“Nigeria has ratified several other international and regional instruments, including (the) African Charter on Human and Peoples Rights and International Convention on Civil and Political Rights (ICCPR) providing for the abolition of the death penalty,” the group said. “Nigeria has not officially carried out any execution for a while due to the enormous pressure from the international community and the Civil Society Organisations against the use of death penalty as a form of punishment.”

An official of the Nigerian Prisons, who spoke in Lagos, said the announced execution might not help. “A large percentage of the inmates in the prisons are merely awaiting trials, with fewer of them condemned,” he said, under condition of anonymity. “This is an indication that executing the few might not necessarily profer a solution to the state of Nigeria prisons.”

Poor prisons

The NDPG however said the major problem leading to prison congestion in Nigeria is the lack of infrastructure and inadequate funding by the government.

“Most prisons in Nigeria were built in the 1960s and the Nigerian government has neither expanded nor built additional prisons,” Mr. Obiagwu said. “Again, the state has always been the cause of delays in the prosecution of persons charged with various offences leading to prison congestion.”

It however advised the Abia State government to “set up its Advisory Council on the Prerogative of Mercy to examine the cases of the prisoners on death row and make a recommendation on the suitability of commuting their sentences.”

Last Tuesday, April 20, 2010, inmates of Kaduna Prisons went on rampage, allegedly because of reports that the convicted former head of the Christ Praying Assembly, Reverend King, had been killed.

Two prisoners were also killed in the incident, during which some prisoners attempt to escape.

The jailbreak attempt was the second in less than two months, a problem which is said to have arisen from the congestion and poor amenities of the prison.

Some prison officials also explained that the prisoners were also not happy with the poor feeding arrangement at the prison and its overcrowded cells.

A report by Amnesty International shows that the 227 prisons in Nigerian have the following in common: congestion, dirt and inadequate medical and rehabilitation facilities.

As a result, many inmates fall sick and die before they are even tried.

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ANPP says Mega Party Project is a mere ‘political talk show’

ANPP says Mega Party Project is a mere ‘political talk show’

The All Nigeria
Peoples Party National Secretary, Sa’idu Kumo, on Friday, chided
politicians for forming a mega party with the sole aim of defeating the
ruling People’s Democratic Party in 2011.

Mr. Kumo said that
the activities of the mega party had been more of “a political talk
show” that could not achieve the aim for which the group was formed.

He said that what the people needed to do to get PDP out of power was a well-defined and people-oriented political ideology.

“The problem with this country is that political parties are formed based on interest, and not ideology,” he said.

He said the ANPP
remained a vibrant opposition party that would not participate in any
mega party project, which, he said, would not succeed in removing the
PDP from government.

He appealed to
Nigerians to imbibe the culture of political tolerance and ideology to
save the country’s fledging democracy from total collapse.

The ANPP, he said,
had avoided open media abuse of rival political parties, and was more
interested in educating and sensitising the electorate on the need to
shun ‘money politics’ and embrace the politics of working for national
interest.

“Opposition is not all about abusing people,” he noted.

He, therefore, called on other smaller parties to join the ANPP to
build a strong opposition as “ANPP is the only strong opposition in
Nigerian politics with a standard structure to win election.”

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Rivers to downsize workforce

Rivers to downsize workforce

The Rivers State government has revealed plans to downsize its workforce for efficiency in the system.

The state governor,
Chibuike Amaechi, who disclosed this in Port Harcourt on Friday during
an interactive session with civil servants, said that the system is
over populated and has no clear definition of schedule of duty.

The governor said
most civil servants in the state are redundant in their various places
of work “and end up roaming about during official hours.”

He pointed out that
modalities would be worked out with the labour unions to determine how
to actualise the plan to prune down the workforce.

“I must say that it
is worrisome to see that state civil service has a workforce of more
than 50,000, some of whom have no specific duties to perform,” he said.
“They only collect salaries at the end of the month; it is therefore
necessary to maintain only an effective number of staff.”

He directed the
Head of Service and the department handling the automated salary system
to ensure that only genuine workers are paid salaries.

Mr. Amaechi also used the forum to state that promotion in the state civil service would henceforth be based on merit.

He advised the
workers to update themselves through available training opportunities
in order to meet up with the changing trend in the service.

“The civil service is the engine room of government; its role is indeed vital to the success of any administration,” he said.

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Optometrists provide eye glasses for residents

Optometrists provide eye glasses for residents

The Abuja chapter
of Women Optometrists in Nigeria on Friday in Abuja offered free eye
screening, glasses, and other services to Jahi village residents.

Claire Esenwah,
Chairperson of the Chapter told journalists that the choice of the
village was in fulfilment of the mandate to take health care services
to the grassroots.

Mrs. Esenwah said
many people at the grassroots were not aware of the need to go for eye
checkups, noting that this could be detrimental to their health.

She said many of
them were also not aware of the eye defects that they had, adding that
such ailments if not properly screened and treated could lead to
blindness.

“We are doing this
as a way to improve the lives of residents because we know they cannot
afford to do the screening. Besides the screening, we will be giving
out free eye drops, drugs and reading glasses to those with eyes
defects,” she said.

“For those with
very serious eye defects that could not be treated here, we will tell
them to come to the clinic where we can examine them. If surgery is
required, we will make sure that it is done and all expenses will be
borne by WON,’’ she said.

Mrs. Esenwah added that the gesture will also be carried to other
villages in other parts of the country where the offices of the
organisation were located.

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Court grants communities leave to evaluate property damaged by JTF

Court grants communities leave to evaluate property damaged by JTF

The Federal High Court in Asaba on Friday granted
leave to estate agents and valuers engaged by 52 Ijaw communities to
assess property damaged by the Joint Military Task Force (JTF) in the
area.

The 52 communities in Gbaramatu Kingdom had in
July 2009 instituted a N100 billion suit against the federal government
challenging the May 13, 2009 invasion of the areas by the JTF.

The suit filed on their behalf by Femi Falana,
leading Felude Zimughan and Selekeowei Larry, sought for damages for
lives and property “wantonly destroyed” by the military operations.

The communities also prayed the Justice Ibrahim
Buba court to compel the Federal Government to rebuild the houses
demolished during the bombardment.

At Friday’s hearing, Mr. Buba ordered that the
communities be permitted to assess and carry out valuation of property
or properties said to have been destroyed on or about May 13, 2009 by
the JTF.

The communities, through its counsel Mr. Zimughan,
had told the court that armed military men of the JTF were still in
occupation of the territory in which the applicants were located.

Mr. Zimughan said the estate valuers commissioned
by the 52 Ijaw communities required the protection of the court to have
unrestricted access to the property without fear of molestation or
intimidation.

He said the claims and reliefs sought by the
applicants were such that expert evidence was necessary to determine
the actual losses suffered as a result of the military bombardment of
their communities.

Mr. Buba, who granted the reliefs sought by the
applicants, said “The application is granted as prayed” and adjourned
the matter to May 24 for further hearing.

He ordered that the experts commissioned by the
affected communities should enter the areas to assess and carry out
valuation of property said to have been destroyed on May 13 by the JTF.

Counsel to the federal government, Emmanuel Okosun, had earlier told
the court that his clients were not opposed to the application and
would go into the substantive matter.

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New vehicles change face of Calabar tourism

New vehicles change face of Calabar tourism

Cross River State
is so well attuned to its tourism industry that practically most
infrastructure are built to support the sector. This is especially
important since the state recently lost its status as an oil producing
state – and the attendant revenue.

The hotel
revolution in Calabar, the state capital, and other local government
areas, from 2005 onward is enough sign of the acceptance of the
industry in this state. In Calabar, new hotels spring up monthly.

It is an open
secret in Calabar that the commonest investment of politicians is in
this industry: members of the state and national assemblies from the
state now channel resources to gigantic hotel projects with world class
facilities. These hotels come in different architectural designs,
mostly with eye-catching outer Greek columns.

It’s about comfort

The infrastructure
development, especially in the hospitality industry, is aimed at one
thing: boosting patronage. Tourists need comfort.

Now, investment in
mass transit to facilitate the movement of residents and visitors and
tourists is receiving a boost. Following the ban of commercial
motorcycle operation in Calabar, investors have moved into the
transportation business.

Branded taxis and
buses – all brand new – have come to fill the void. The four companies
holding the intra-city mass transit franchise in Calabar today include
Pronto Cars, Canaan Cabs, Calabar Urban Taxis and Red Alert. Their
colours are deep blue, light green, blue fringed with green and red.

The special
adviser on public transportation, Gabriel Okulaja, listed criteria for
franchise to include capital, availability or provision of office,
telecommunication and other facilities necessary in the business. Also,
all the vehicles have a tracking system to prevent them from being
stolen without detection. This device helps in monitoring the vehicles
too.

More companies are
billed to register to operate under the franchise, but out of the
quartet already in business, Canaan Cabs appears to be in a class of
its own. The parent company, Remlords Tours, is an long time player in
the tourism business.

Out with the old

Recently, the
initial 50 cars demanded by the state government for a company to
qualify for the franchise were inaugurated by Mr. Okulaja. Another 150
cars will be added before this year runs out. The 50 cars were
dedicated by Josef Bassey of God’s Heritage Global Mission, Calabar.

Mr. Okulaja said
the decision to ban motorcycles was the culmination of government’s
plan to bring sanity to Calabar roads. “The formal commissioning of
Canaan Cabs is a direct result of the initiative of government in
creating the enabling environment for private sector driven provision
of decent, modern, safe and affordable transportation to the
citizenry,” he said.

Chairman and chief
executive of Canaan Cabs, Nkereuwem Onung, said his company has taken
advantage of the opportunity provided by the government to float the
scheme.

“This scheme is
not limited to Cross River State. Very soon, you shall be seeing Canaan
Cabs in Lagos and other cities. We are out to support tourism and also
meet the mobility needs of members of the public. We have consultants
from the western world. Together we shall build an enviable and
reliable transportation business,” Mr. Nkereuwem said.

According to Mr. Okulaja, a new dawn has broken for public
transportation in Cross River State. “It is an era in which rickety
cars have given way to brand new vehicles to facilitate the movement of
commuters, including that of local and foreign tourists,” he said.

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ABUJA HEARTBEAT: The Charm for the Chair (II)

ABUJA HEARTBEAT: The Charm for the Chair (II)

As the year rolls
to an end, many chairs will be vacant and will need to be occupied in
2011. Some weeks ago, two chairs became vacant within 48 hours of each
other, when two senators were extinguished by Death’s mighty sting. We
may not have evidence, but tongues are wagging as to why two senators
from the same state would die, virtually on the same day.

The attraction for
these chairs, the juiciness of these portfolios, and the temptation for
these seats, are definitely provoking others to procure charms, juju,
and voodoo – whether physical or spiritual – that will leave a lasting
damage, probably worse than Haiti or Rwanda.

Earthquakes do not
just happen, in spite of the scientific explanation. There is always an
abundance of spiritual connotation. Now, it is beginning to go beyond
individuals.

Even in Jos, we
have heard that some groups have been charmed by the chairs that belong
to another group, and they want to occupy these by force or
systematically take over the entire middle belt. It may be rumour, but
to every rumour there is always an element of truth. If in doubt, check
your mirror.

Certainly, we would
unearth a can of worms if we try to follow the river of cash flow out
of the Nigerian official establishments, and some people believe access
to this cash is their birthright. Hence, they stake their claims to
these juicy chairs, offices, or portfolio. The very annoying evidence
is that inspite of all they have stolen and stashed away, the level of
poverty, suffering, and stagnation of the mass of people in their area
is stupefying.

In fact, they are
the actual cabal. They recycle themselves and their children, and will
stop at nothing to extinguish even a distinguished soul that stands in
their way. They are ready to use aircraft, witchcraft, and even ‘mammy
water’ to annihilate the presumed enemy. The bible says one shall chase
a thousand and two shall chase ten thousand, pardon my allusion. Now if
one person can kill another because he feels his chair has been
threatened, what will happen if one section feels that their attractive
chairs are being threatened? Does somebody remember the meaning of
genocide or maybe war?

Unfortunately, the
presumed enemy is the entire nation that has been reborn and we are all
collectively saying, NO MORE RESERVED SEATS. It is a thing of shame to
hear someone say he is from an educationally backward state or, to put
it more diplomatically, an educationally challenged state and so, if
called to apply for a position and he scores 35%, he will be given the
job, ahead of others who scored 90%, because we have to follow the laws
of Federal Character. How can we ever progress in such a circumstance?

We need to make a
deliberate effort to kill the charm of the chair before it lures more
people in search of more dangerous charms for these chairs. To these
die hard charmed-chair seekers, government is the only business they
know. They want to continuously sit on juicy chairs where they can
direct the river of cash to flow into the lake of selfishness, greed,
and avarice in their backyards. And continuously produce zombies that
they have brainwashed into believing that ‘there is no blessing in
education’, whereas their children are attending the best schools in
the world, training to become owners of oil blocks, and/or control the
financial institution. They do this to ensure that they can keep the
charm for the chair in their family forever. Even the music of
rebranding, they have become deaf and dumb to.

Power is not a family heirloom. Do your best and leave the rest.

These chairs are for all of us, and only the best should sit on them so that we can all move forward.

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Rotational presidency is a delusion

Rotational presidency is a delusion

Junaid Mohammed,
national chairman of the People Salvation Party (PSP) , speaks on
Nigerian leaders, next year’s elections, and the possible candidature
of Aliyu Gusau and Ibrahim Babangida. Excerpts:

On Ibrahim Babangida

Sincerely
speaking, I don’t have a view and this is quite unlike me. This is
because I have not been able to hear from him the reasons he wanted to
come into electoral contest, and why now? If, for whatever reason, IBB
decides that the country now needs him, or is it the usual empty
rhetoric of ‘my people asked me to come and contest and I’m merely
answering the call of my people?’

I think it will be
very disingenuous for a man who was out of power under the
circumstances he left to now come back and say ‘my people want me to
come back.’ Where were his people when he was forced to leave in 1992?
I’m concerned about the number of retired military officers who believe
they have a divine right to come and govern Nigeria. I know Olusegun
Obasanjo believed in that and that belief was encouraged in a very
substantial way by IBB himself.

I want IBB to
speak for himself, which will justify his coming to be the president of
Nigeria. I would now ask the question, what is it he left behind that
he wants to come back to? That is not to say I believe the nation
should do to him what he did to us, the first and second republic
politicians, when he banned us from participating in political
activities without anything against us.

Now is the time
for him to realise what it meant to have dealt with people in a very
shabby manner. But beside that, I believe he should be allowed to
contest and let the people of this country decide whether he is going
to be a worthy successor to the likes of Obasanjo, Yakubu Gowon,
Murtala Mohammed, and others.

What he is saying
about the youth is also an indictment about what he has said before. He
unilaterally disqualified most of the qualified politicians in this
country. The fact of the matter was that when he banned the old breed,
he did not do it in the interest of the nation, and when he is now
calling the new breed names, people are bound to suspect if there is
anything new he learnt. Even though he was unjust, I don’t believe we
should met out injustice to him because two wrongs don’t make a right.

On Aliyu Gusau

I want you to
quote me, he is barely literate. If he likes, he can sue me because I
can bring out his record from primary to secondary school and to
Nigeria Defence Academy (NDA). The Emir of Gwandu, Mustapha Jokolo, who
grew up in the same household with Aliyu Gusau, has said in an
interview with a Lagos newspaper that the man was never trained as an
intelligence officer; he was just put there by late Shehu Musa Yar’Adua.

I’m not aware whether Aliyu Gusau or anybody else has come out to deny that this is a matter of record.

If these are the
kinds of characters who come out and believe they have the right to
govern alongside IBB or Muhammadu Buhari, then there is a danger to
Nigerian democracy and that danger cannot be wished away by either IBB,
Buhari, T.Y Danjuma, Obasanjo, or Aliyu Gusau. It has to be addressed
by Nigerians themselves.

On Obasanjo and corrupt leadership

On the issue of
corruption, again I want us to be very cautious. Unless you have a
determinant measure that can practically measure the level of
corruption under Obasanjo, Yar’Adua/Goodluck, and level of corruption
under IBB or others. I’m not in a position to say corruption was less
or more or otherwise. Because frankly speaking, this concept of
corruption is quite intimately related to the issue of the resources
available to the country. Such as the issue of Gulf war windfall, which
is yet to be resolved; and I want IBB as a friend to come and address
this issue. As far as I’m concerned, you can only measure corruption by
the measure of affluence or wealth of those who have gone into
government and come out. If you look at the problem we had, the
constitutional crisis and the June 12 debacle, I’m not aware that IBB
has come clean with the matter. But I can say with due humility he has
come clean to me. He has told me about three times how he regretted the
turn of events over the two party systems, and over the issue of Abiola
and the crisis which affected the country. In assessing a government,
you have to assess it at various levels. Corruption then and now have
become institutionalised. Now that Obasanjo is out of office, everybody
knows that he is the most corrupt leader Nigeria ever had. Obasanjo was
a lot more corrupt than IBB.

Role of military in politics

The state of
things now is more of an indictment on the military than the political
elite. Whenever a soldier stages a coup in this country, they always
claim civilians were corrupt, irresponsible, or not patriotic. The fact
that money is, today, the sole determinant of public office and the
soldiers see themselves as the only people who have the money,
indicates that soldiers stage coups because of money, and not for any
patriotic reason. When they went out to bring Obasanjo out of prison,
the first thing they did was to get billions for him, from both local
and foreign sources, for them to oil the machinery that is called the
PDP, and that is how they won the election. So, the only reason why
they are in politics today is because they have the money in abundance
that they can use to buy votes and create confusion in the country.
Tell me one soldier who can say he has anything to offer above any
civilian.

On the political situation

No, it is not a
helpless situation. It is just the political class that is helpless and
hopeless. They were accused of playing monetised politics now that the
soldiers are ahead with that game. Why is the political class not
coming out to say we are not corrupt, these are the people who are
corrupt? In a nation which, since independence in 1960, have had over
30 years of military rule. If the country is in a mess, who are you
going to blame proportionately? But I agree with you, the civilian
political class is hopeless.

The leader Nigeria needs

We need a tough
son, who would make sure that the country’s laws are obeyed and who
will make sure we have a revenue allocation formula, which is realistic
and gives every Nigerian a fighting chance to get education, and to be
competitive in the labour market. We need someone who can make sure
that some of the ills of the society, such as illiteracy, corruption,
diseases, and poverty are eliminated.

The leader we need
must be the kind of leader who will have confidence in the Nigerian
state. He must be the kind of leader who will say there are certain
things to be done, but cannot be done by the system of capitalism which
we operate. And people who are in leadership positions must not use it
to enrich themselves, and I believe that is not too much to ask from a
Nigerian leader.

On rotational presidency

I don’t believe in
rotational presidency. I have been a critic of it since 1978. Because
it is not democratic, it is nonsensical, and is always subjected to
intervention by forces over and above the political system or the
political class. For example, when they had the system under National
Party of Nigeria (NPN), which delivered Shehu Shagari as president,
they didn’t envisage the termination of his presidency unceremoniously
in 1984. Which means that the system simply disappeared. What we have
now in Umaru Musa Yar’Adua is an invalid president who is incompetent,
lazy, and indolent – who cannot do anything and who has been pretending
to be governing Nigeria for the last three years. If what we had in
1984 was a military intervention, what we now have with Yar’Adua is a
divine intervention. Since they don’t have control over military and
divine intervention, what is the need of deceiving ourselves that
zoning and rotation works. Who is fooling who? It does not work and it
has created crisis anywhere it was tried.

And people who are in support of it cited the example of
Switzerland. Switzerland is not a federation. It is a very small
country, less than the population of Kano. So I don’t know the reason
for it. To pretend that Goodluck Jonathan is going to pretend that he
is not going to be interested in the presidency is to delude oneself. I
don’t believe in deluding myself in politics or in public life.

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PDP rift widens as Nnamani, Odili and others are suspended

PDP rift widens as Nnamani, Odili and others are suspended

The People’s Democratic Party (PDP) was yesterday thrown into
further disarray after the National Working Committee (NWC) of the party
announced the suspensions of the former Senate President, Ken Nnamani, and 28
other members of the PDP Reform forum.

The meeting of the National Working Committee coincided with the
PDP Reform Forum’s meeting, in which the former Senate President addressed over
2000 people in Abuja.

The NWC meeting considered the recent uprising by the reformers
and expressed its surprise at the refusal of members of the party, operating
under a group called the PDP Reform Forum, to appear before it, despite
extensive invitations to them.

Earlier in the day, the Reform Forum had their own meeting in
which they had accused the PDP leadership of having failed in the past three
years to move the party power.

In a statement signed by its National Secretary, Abubakar Kawu
Baraje, the party said it is of the view that the concerned members had
adequate notice but declined to utilise the opportunity granted them by the
invitation to explain their roles.

The party stated that the decision to dishonour the invitations
to appear before it is a calculated attempt to disregard lawful directives of
the party in order for them to continue to ridicule it, contrary to Article
12.1 of the PDP Constitution.

The NWC then invoked Article 21.4 of the party constitution to
suspend Mr. Nnamani, Aminu Masari, Onyema Ugochukwu, Adolphus Wabara, Peter
Odili and 24 other members of the PDP Reform Forum.

The working committee added that the case would be referred to
the National Disciplinary Committee for further action.

At odds with party
leaders

But Mr. Nnamani, who is the Chairman of the steering committee
of the Forum, stressed the need for better organisation of the ruling party in
the interest of the entire country.

“The party must tolerate other people’s views and not some
people sitting down and dictating how things should move without minding
others, which is anti-democracy,” said Mr. Nnamani, as he addressed the
2000-strong audience.

Nnamani said some state governors were invited by the group to
discuss the “nose-diving” status of the party but because of their selfishness
and their fear that such a gathering could lead to a change of leadership
structure, they refused to turn up.

The former Senate President regretted that the party has
seriously derailed from the ideals and goals of the founding fathers, such that
today, all the grand visions of the party have virtually vanished and nobody is
talking of providing meaningful governance and improving the living standard of
Nigerians anymore.

He said the umbrella under which hid before had disappeared
owing to lackluster and inept leadership of the party.

Former Minister of Education, Chinwe Obaje, said reform could
never be a negative trend in any progressive society, but a necessary change of
attitude that must be embraced by those in positions of authority. According to
her, reform is a continuous process which no human organisation must derail
from to ensure progress.

Inept leadership

Mrs. Obaje said the mission of the forum was not to pull the
party down but to campaign for good polity within the party.

Doyin Okupe said, without reform, the party would not last based
on its current structure and leadership. “PDP leadership is totally and grossly
inept,” he said, adding that most of the problems within the party were caused
by the overbearing power of the governor’s forum.

The former governor of Taraba State, Jolly Nyame, said he
supported the group and was ready to associate with it. “You don’t have to be
in power before you can be a reformer,” he said.

The former Organising Secretary of the party, Dahiru Umar, said
that more than N4 billion was left in the party account for the current
leadership to execute the building of the party’s headquarters in Abuja, but
noted that nothing had been achieved with the amount.

Some members of the group who attended the meeting were former
Senate President Adolphus Wabara, Amanga Nimi, Adamu Waziri, Rochas Okorocha
and Iro Dan-Musa.

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Oversubscription was expected, say operators

Oversubscription was expected, say operators

The oversubscription of Oando Plc’s Rights Issue announced on
Thursday was expected, some operators at the Nigerian capital market have said.

Gbenga Emmanuel, a portfolio manager at WealthZone Company, said
the 128 per cent subscription which the company recorded during its Right Issue
offer was “not surprising” to us market operators.

“We had predicted that the Right Issue would be oversubscribed
because investors’ interest in Oando, an indigenous oil company in Nigeria with
upstream and downstream operations, is still very strong,” he said.

Mr. Emmanuel said many of the company’s shareholders bought
additional rights during the offer. “Only few of them sold their rights,” the
finance analyst added.

Tunde Oladapo-Dixon, Chief Executive Officer of StockPicks
Consulting, also said the company’s Right Issue was oversubscribed because
“about 80 per cent of subscribers took their rights while some sold off their
rights.” Oando issued 301,694,876 ordinary shares of 50 kobo each at N70 per
share to existing shareholders who names appeared on the register of the
company as at the close of business on December 18, 2009. The issue opened on
January 25 and closed on February 19.

Indication of confidence

Oando, one of Nigerian energy groups, yesterday announced that
its recent Rights Issue was oversubscribed. The company, which has a primary
listing on the Nigerian Stock Exchange and a secondary listing on the
Johannesburg Stock Exchange, in a statement, said the Rights Issue that was
expected to raise N21 billion returned 128 per cent subscription.

Wale Tinubu, Oando’s Group Chief Executive, said, “We are
extremely pleased with the positive reaction to our rights issue in spite of
the seeming apathy to capital market investments.

This is an indication of the confidence of investors in our
ability to optimise resources to create superior returns. These funds will
complement our ongoing strategy of investing in high margin businesses as well
as supporting our expansion plans to take maximum advantage of opportunities
within Africa’s energy landscape,” he said.

Raising more funds

Seeking shareholders’ approval to raise the fund last August,
Mr. Tinubu, said the aggressive growth saw the company become highly leveraged,
and would therefore need to pay down and restructure some its loans under
better terms.

He added that the company also needed to raise further capital
from debt and equity financing sources to develop its new acquisitions that can
diversify its revenue stream.

As a result, the shareholders gave their approval and support
for N220 billion capital raising exercise last year. Specifically, the N20.4
billion begin the first phase of the capital raising programme, according to
Mr. Tinubu, “is an important step for Oando towards refinancing the acquisition
of upstream assets, providing operational capital to fund the operation of
upstream business and short & medium term investments in its gas and power
business segment.” He explained that after the right issue, what will follow
will be a combination of international debt and equity offerings through which
Oando hopes to raise between $500 million and $600 million. The final phase, he
added, would be a public offer later in the year.

High earnings

Oando, which has six business divisions -Exploration &
Production, Energy Services, Gas & Power, Marketing, Supply & Trading,
and Refining & Terminals, on April 12, announced results for the year
ending December 31, 2009. Its Pre-Tax profits increased by 21 per cent to
N10.1billion compared to N8.3 billion same period in 2008, while earnings per
share increased by 23 per cent.

In 2004, Oando raised N16 billion, the highest at that time by a
non-financial institution, through a rights issue and public offering at that
time. The funds realised accelerated the company’s transformation from a
downstream business into one of Nigeria’s largest indigenous energy groups.

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