Archive for nigeriang

Lessons from the Kokomaster

Lessons from the Kokomaster

So, about a month
or two ago, a coalition of musicians led by D’banj, who had sung for
the Goodluck Jonathan campaign; and Psquare, who had sung for the
Ibrahim Babangida campaign; gathered the press to a briefing in Ikeja,
Lagos and announced that they were committed to a series of free
rallies across the geopolitical zones of Nigeria to encourage young
people to register and vote.

Something wasn’t
quite right about it – and not just because, as someone who has been
part of civil society working on elections and youth participation over
the past year, the leading lights for this sudden campaign had been the
most reluctant to engage in any non-partisan process to get young
Nigerians involved.

The response across
social networks shared my surprise when the news hit. “We know those
who will do free shows,” one popular name tweeted. “And they have not
yet been born.”

I agreed – a
little. We know those who can do free shows – and they have been born,
they just weren’t the guys who were now involved in this free show. And
conspiracy theorists soon emerged – who swore that the presidential
candidate with the deepest pocket was using this supposedly
non-partisan platform to drive a deeply partisan agenda.

Nothing was heard about the concerts for weeks after.

In that period, a
group of young people (including me, for purposes of full disclosure)
began to work on the country’s first youth-centred political debate –
fixed for March 25. A debate that President Jonathan (you know, the big
pocket candidate) and Muhammadu Buhari had telegraphed a refusal to
attend.

Then, suddenly, on
the eve of the now famous NN24 national presidential debate, whispers
turned to frenzy: D’banj was going to be interviewing President
Jonathan on Silverbird Television. There’s no need to recount the
‘Dbanjing’ (a new word for nodding mumu-ly) that followed, or the
opprobrium that attended D’banj immediately after the interview – as
well as his cohort and boss, Don Jazzy, who made the mistake of trying
to defend the action on Twitter, against a band of angry young people.

As it is, and
obviously as a post-interview fallout, D’banj has not been seen
anywhere near the president. He is said to now have security due to
threats to his life, and his credibility as a youth advocate is
terribly impaired.

What was the
annoyance? Yes, there were some who would get angry anyway just because
D’banj exercised his constitutional right to endorse Mr. Jonathan – a
point which is really, er, pointless, as there is absolutely nothing so
terrible about the Jonathan candidacy that makes it impossible for him
to have true believers.

The anger was,
first, that D’banj positioned himself – wrongly and inappropriately –
as representing the youth. That was weird. Of course, he was buoyed by
his UN Youth ambassadorship, his The Future Awards for Young Person of
the Year and other such laurels, which he mentioned disingenuously
during the interview. But worse for him, was the advertorial that
followed – announcing one of those suspicious “It’s our time” free
concerts, to hold on the same day as the youth debate! Ah, the danger
of free shows.

The battle line was
drawn. Did D’banj and his sponsors really think young people are so
vacuous that they would choose music over a conversation about their
future?

There and then the concert’s buzz died.

Young celebrities
should be paying attention. Last year, when a host of singers and
actors began to gyrate for the candidates, while they denied that money
change hands, antennae were raised. But, of course, it is alright to
endorse a candidate or even do your job as a singer by entertaining at
his event.

The problem is when you get high on your own supply.

D’banj will yet
recover from this – but the elasticity of that recovery will lie in
whether this kind of, well, mistake becomes a pattern with him or
whether it is a one-off; a mistake to which he is entitled.

The choice he makes
will determine if his image goes the way of Onyeka Onwenu – who has now
sung for and ‘endorsed’ three consecutive PDP presidents, in addition
to that pesky concert for Sani Abacha in 1996 – or whether he will
build a powerful, activist brand, like his colleagues Banky W (who
shunned the concert) and MI, (who promptly returned the performance
fee, according to reports).

You see, folks might like it when you sing about the koko, but when push comes to shove, they know what the real koko is.

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AH-HAA: School elections

AH-HAA: School elections

Are you
election-weary? Welcome to the club; you are in excellent company!
Surely, by now, you will have voted for your new (perhaps improved?)
members of the National Assembly? How did it go in your neighbourhood?
Did all the relevant agencies involved in the process keep faith with
all those clichéd promises we got? Of course, as the days roll by, we
will learn about the good, the bad, the absurd and the totally daft!
One can’t wait for the gist to start rolling in.

After all that has
been said and done by every candidate in these elections, one really
wonders if they ALL truly believed that they would win. And one is only
trying to be realistic here. The whole process is not as
straightforward as the election for prefect you participated in at
school; you each wrote the name of the person you wanted as prefect on
a piece of paper and placed it in a box or school beret (as the case
may be).

The names were then
compiled from the ‘ballot’ papers and the person whose name cropped up
the most was elected. Sounds so simple; you then wonder why, with a
process so straightforward, we insist on complicating matters.

If any school today
wants a particular person elected as prefect, who may not be the most
popular kid in school, they have enough styles to choose from. The
students may want a non-conformist prefect who will not succumb to the
whims of the school’s management. So the first thing is for the school
to make sure that the popular kid can never, will never and does not,
under any circumstances whatsoever, emerge as a prefect, so that there
will be no one voting for him. How? Simple!

What are the things
the popular kid is good at? Outlaw them; and make ONLY those things he
is bad at, the criteria for participating in the election. And make
these rules with a straight face, never minding how the perceived
unfairness and alleged injustice is viewed by anyone in the school.

There are many
reasons to proffer: “we are the owners of our school and we reserve the
right to decide who will fly the flag of the school. If anyone does not
like our criteria for deciding who is eligible to be a prefect, they
can go to another school and try their luck there. After all, where
were they when we were struggling to build the school to this level,
for them to just come from nowhere and want to be prefect, just like
that?”

Push it further:
“we are the owners of our school and we know the dream of our founding
fathers. We have decided that zoning exists in our school; as a result,
Master/Miss Popularity is hereby declared ineligible because he/she
comes from the wrong zone. It is important that ALL our students feel a
sense of belonging in this school to enhance the unity of our nation
from these formative years; they must feel that it is possible for
their own ethnic group to eventually become prefect one day. If anyone
does not like our zoning policy, they can move to another school that
does not zone students’ leadership positions, please!”

The idea is to work
from answer to question, and do it legally. Follow due process, then
you have no problem. You can add to and/or subtract from the criteria
at will; you own your school, so who is to stop you?

If Miss Popularity
has long hair, outlaw long hair as discriminating against female
students who are ‘blessed’ with short, thin, scanty or just bad hair;
if Master Popularity is athletic, outlaw ‘hunks’ as discriminating
against nerds. In fact, insist on ‘seriousness’, not sports, as the
MAIN consideration of the school’s electoral panel.

Is Miss Popularity
pretty? Outlaw beauty because it discriminates against those not
considered beautiful! Is the popular guy handsome? Outlaw good looks,
and justify it on the ground that not all world leaders are handsome
anyway; after all, handsomeness or beauty is no guarantee of a person’s
performance.

Remember you are
not saying anything new; you and everybody else have heard it all
before! Be prepared, however, for troublesome parents who know too
much. Call their bluff and tell them to meet you in court; or quickly
appoint their popular kid to a position with a great title: “Swagger
Prefect” in charge of all males getting the school swagger right or
“Beauty Prefect” in charge of all females aspiring to some level of
beauty. LOL!

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Nigeria rises to the call

Nigeria rises to the call

The impending collapse of Laurent Gbagbo’s regime marks not just the end of that country’s nightmare: it has signalled the return of Nigeria as a voice and a leader of Africa.
When Gbagbo and his cronies declined last November to accept the results of an election in which he was beaten by eight percentage points, the Goodluck Jonathan administration took a principled stand and has been out in front ever since.
Foreign Minister, Odein Ajumogobia, has worked assiduously behind the scenes and publicly to shape the diplomatic environment, to isolate Gbagbo, to impose sanctions, and to point him in the direction of the exit.
This is no small matter. In the world of international diplomacy, no censure of a state or a leader is possible without the assent of the region. The Economic Community of West African States (ECOWAS), under the Chairmanship of President Jonathan, recognised Allasane Ouattara on December 8, and called on Gbagbo to honour the outcome of the electorate.
In early March, after months of doomed mediation and wrangling as it battled to speak with one voice, the African Union recognised Ouattara as the legitimate winner of the election and endorsed a plan for him to set up a national unity government.
On March 14, Ouatarra stopped in Abuja to meet with Mr. Jonathan, the one leader on the continent he chose to consult before heading back to Abidjan for the home stretch.
On Wednesday night, the United Nations Security Council voted for Gbagbo’s removal and for a freeze of all Gbagbo’s foreign assets. As in the other initiatives, this was driven by Nigeria, this time in concert with France.
While the military push from the reconstituted Republican forces was critical, the economic and financial sanctions and steadily growing isolation – in the teeth of vicious propaganda from the Gbagbo side – made the downfall inevitable.
At the end of the day, this has been a huge victory for democrats in Africa – and a boost to the continent’s democratic credentials.
It contrasts and counteracts places like Zimbabwe, where Robert Mugabe has lost election after election and deployed horrific violence against his opponents, but remains firmly in power.
The South African Development Community (SADC) has pussy footed around Mugabe’s abuses for years. Apart from never resolving the crisis, this sets a poor example. Every bad loser of an election that gets away with using violence and the instruments of state to stay in power encourages the next one. The line in the sand that was drawn under Gbagbo is of importance to more than Ivory Coast.
The firm leadership and deft diplomacy that Nigeria has shown is desperately needed in a continent that is crying out for leadership.
The AU represents a number of often conflicting and competing states, and is at its best as a mediator but it can no more take the lead than the European Union can. As has been shown recently in Libya, it is only states like France or the United Kingdom that can take the decisive steps, for better or worse, that actually make a difference.
There was a time when, for all their sins, Thabo Mbeki and Olusegun Obasanjo had a broader vision for Africa and were taken seriously in the councils of the world. But during the last four years there has been a vacuum in pan-African leadership – unless one would use that word to describe Muammar Gaddafi who as Chair of the African Union spent his time fantasising about a United States of Africa (with its capital in Libya).
Nigeria has a long and respectable reputation for peace keeping in Africa. But as everyone knows, the brand has been tarnished by military rule, corruption and the debacle of the 2007 election.
Nigeria under Umaru Yar ‘Adua took a backseat. A country of 150 million, a model and a challenge of Muslim and Christian co-existence, a holder of great strategic natural resources, the most populous country in Africa, was not afforded a lot of respect.
Since taking office last year, Mr Jonathan has turned that around – not with grand gestures but rather by showing Nigeria as a responsible citizen of the global community. Nigeria is building a case for a permanent seat on the UN Security Council.
It was, for instance, one of the OPEC members that stepped up to the plate to increase oil production to meet the shortfall when Libya exploded, easing the pain of billions of consumers around the world.
As a non-permanent member of the UN Security Council, Nigeria voted to authorise the action that potentially prevented the slaughter of thousands of people in Libya. There are many who disagree with that position, and the armed intervention that followed, but at least it was a position. Nigeria stood up and was counted.
This is not to say that Nigeria’s prominence in global forums should be dependent on its remaining a reliable ally of the West. The country has to be judged on its strategic and human importance, and its ability to give voice to a billion Africans, especially on those issues that touch the continent.
To do that, Nigeria needs to put its own house in order. The economic growth that is forecast for the next few years, and that is forging a new and surging middle class, must be accompanied by social provision for the poor and the underclass. Nigeria cannot afford to be near the bottom of every social indicator.
And an election that is at the very least a marked improvement on 2007 is essential for Nigeria to be able to defend democracy on the continent, as it has in Ivory Coast.

Phillip van Niekerk is the former editor of South Africa’s Mail & Guardian newspaper

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Nigeria needs new breed of legislators

Nigeria needs new breed of legislators

As Nigerians await the legislative election which
was postponed on Saturday and is due to take place tomorrow, it is
important to remind ourselves of the role of the legislature in the
democratic process.

The 1999 Constitution says that “the National
Assembly shall have power to make laws for the peace, order and good
government of the Federation or any part thereof with respect to any
matter included in the Exclusive Legislative List…” Without laws, a
democratic society, or any other society for that matter, is doomed.
The 17th century English philosopher, Hobbes, reminds us that without
laws, there can be no justice, and the only life available to citizens
will be a “nasty, brutish, and short” one.

We have in recent weeks been treated to a
semblance of activity from our National Assembly– the passing of the
Freedom of Information Bill, an Anti-Terrorism Bill, and the National
Tobacco Control Bill. We have no idea what spurred this seeming
awakening from a legislature that for most of its tenure has made the
headlines, not for its accomplishments, but instead for how much it has
cost the nation, and how obsessed it has been with self-gratification.

Perhaps the lawmakers realised that time was no
longer on their side, and that if they wanted to be judged kindly by
posterity then they had to start passing laws, which is what they were
elected to do in the first place. If that is the case, then they need
to be told that the realisation (of history’s looming judgement) has
come a little too late.

If only they had shown a dedication to duty from
the beginning. A look at some of the headlines and comments that have
accompanied our stories on the National Assembly in the last two years
will give a better idea of the kind of legislators Nigeria has been
burdened with since 2007 (not that their predecessors were any better):

‘An Assembly for looting’; ‘The luxury cars of our
lawmakers’; ‘National Assembly, the most expensive on earth’; ‘Our
National Assembly is not producing any laws’. In ‘An Assembly for
Looting’ (2009), our correspondents wrote: “If the citizens were to
dismiss the entire membership of the National Assembly and find other
uses for their money, our treasury will have nearly enough money to
fund the N88.5billion that President Umaru Yar’Adua plans to spend this
year on building power plants, so that children can do home work under
electrical lamps and not paraffin.”

With the benefit of hindsight, it is clear that
the choice Nigeria made was to keep the profligate legislators and
instead dismiss our vision of a transformed power situation. Late 2010,
the Central Bank Governor disclosed that the National Assembly – made
up of less than 500 elected officials– was taking up 25 per cent of
“total government overhead.” Even for hardworking legislators, that
figure would be unjustifiable.

In June 2009, two years into their tenure, we
reported that the Senate had succeeded in passing only 15 of the 284
bills that came before it. At the state level, the situation is not
much better. Many State Assemblies are either firmly in the pockets of
the state governors, and thus employed for nothing more than
rubber-stamping of the governors’ decisions; or embroiled in a
cat-and-mouse relationship with the executive. There is the tragicomic
case of Ogun State, where the House has been split into two since 2010.
We watched as a minority group of nine senators (sympathetic to the
governor) met and announced the suspension of 15 members. They then
went ahead to elect, from amongst themselves, a new Speaker, who was
immediately recognised by the governor.

We hope that the incoming batch of legislators, at
federal and state levels, will make a clean break with the past. If the
federal legislators want to convince us that they are serious about the
wellbeing of our country, they will have to start by doing something
about the N63 million (senators) and N45 million (representatives) that
they will be ‘entitled to’ per quarter as “constituency allowances”,
and for which they do not have to give account.

Legislators have no business awarding contracts
and managing project funds. Nigerians also have a duty to hold their
legislators accountable. We cannot continue to just complain about
dismal performance. Hopefully there will be an election tomorrow and
the votes cast will prove to be a just verdict on the performance of
the lawmakers. Until politicians get punished – with outright rejection
– by the electorate, there will be no incentive for them to shun
mediocrity and greed.

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ON WATCH: Electoral violence

ON WATCH: Electoral violence

The youth of Nigeria are too often the tools of
those who seek power and this becomes increasingly obvious as we
approach the elections. These youth are led with false promises and
hopes for a future that will improve their lives and their families’.
Greasing the wheels of violence with a little money to enslave these
youth to the power lust of their godfathers is akin to throwing grain
on the ground to feed chickens.

If the candidates whom these youth support are
elected, then we can expect these same youth to be cut loose after the
elections for their masters have no further use of them. Many of these
youth will be armed, disillusioned and then continue down the road that
leads to a life of crime and violence.

In this context we are seeing more groups than
ever before urging the public to shun violence in the run-up to the
elections. The National Association of Nigeria Students, the Christian
Association of Nigeria and Jama’atu Nasir Islam have each joined the
chorus of public bodies calling on youth not to join in any violent
actions or be unwitting tools of corrupt politicians.

The Sultan of Sokoto has called on all Muslims toa
be on guard against politicians seeking to mislead them. “We should
respect each other in Nigeria. No one should infringe on the religious
rights of the other, in the spirit of unity and respect for one
another.”

Amidst these calls against violence comes what I
can only describe as a thoughtless, foolish and attention-seeking
statement by a person claiming to be a pastor. A “pastor” of a church
in Enugu has declared to reporters that God has told him the elections
will be “bloody”. I do not dismiss the position that God may choose to
interact with us in a variety of ways and provide direction for our
daily lives, nor that we may seek His intervention. But this sort of
comment from the Enugu pastor must be dismissed for the reckless and
misleading statement that it is. It is an encouragement to violence
that it would have been prudent not to have reported.

The leaders of the major Christian denominations
are disappointingly invisible when it comes to dealing with this sort
of situation. In fact, with so many bodies publicly calling for a
peaceful election process and urging youth to shun violence, these same
church leaders are almost undetectable. They must take a lead in such
debate. The Sultan of Sokoto provides an example that the leaders of
the Christian church might care to note.

My comments are not intended to ignore the
potential for violence. Rather they are a plea not to overestimate or
inflate the potential for unrest and election related conflict.

This point was made this week by the National
Security Adviser (NSA) Owoye Azazi, a retired General, when, in a clear
and welcome break with past security practices, he invited local and
international media to a very full and frank security briefing in which
he underscored the need for collaboration between the media and
security agencies to ensure free, fair and credible elections. “The
media have frequently reported pre-election activities in bad light
leading to unnecessary violence and reprisals by the electorates who
feel that their political sympathy has been threatened,” he said.

The NSA acknowledged that, although the conduct of
the elections next week will be an improvement over previous elections,
the nation should strive to ensure that future elections “will even be
better”. “We have a responsibility to show all Nigerians and the
international community that we are capable of conducting free, fair
and credible elections in a secure environment,” he said.

But what weight do we give to the seeming resurgence of MEND and the ongoing even if sporadic attacks of Boko Haram?

The MEND public profile which operates through
media releases lacks the credibility it enjoyed particularly in 2008
and 2009, not least because there are multiple email addresses used by
persons claiming to be the MEND spokesperson. This lack of public
credibility causes the group to try to mount operations to prove that
they continue to exist as a viable militant group capable of causing
destruction and therefore should be taken seriously. But the community
support that MEND enjoyed in past years is now noticeably lacking. The
past MEND agenda of agitating for an improved quality of life for Niger
Deltans seems to have faded. Maybe it will be unnecessary if the next
government aggressively addresses deficiencies in the Niger Delta.

Boko Haram may have its gripes about a secular
government but it is substantially a different dimension of violence
that is not election related and must be addressed in a manner
different to that which seeks to curb political godfathers and their
aspirants recruiting youth to violence for the purpose of influencing
the elections.

The seed of MEND was sown by politicians seeking to retain power by
recruiting Nigeria’s youth to violent behaviour. Every effort must be
made to stand against such action that perverts the youths, the
electoral process and ultimately the nation.

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SECTION 39: ‘De yoot’ vote

SECTION 39: ‘De yoot’ vote

As we wait for the
final results of the first round of voting in our general election
cycle, there’s one trend I’m looking out for.

No, not whether –
if the Peoples Democratic Party returns the majority of legislators
again – that automatically means that their presidential candidate,
Goodluck Jonathan, is going to win. No serious contestant for executive
office (and after he has invested so much of our time, money and other
resources towards being elected, I think we can agree that Jonathan is
a serious candidate) ought to have their own electoral fortunes tied to
a group held in such thorough disregard as the nation’s legislators.

Even their own
party is anxious to get rid of them, having given its flag to only a
third of legislators to return to the National Assembly in June 2011.
That’s an improvement on the 80 per cent that it sacked in 2007, but if
this time the electorate happens to apply a ‘three strikes’ rule and,
deciding that after three attempts (in 1999, 2003 and 2007) that they
really can’t trust the PDP to pick good lawmakers, turn to other
parties to populate the Senate and House of Representatives, it won’t
necessarily mean that they won’t vote for the PDP’s presidential
candidate.

It’s also entirely
possible – even though doing the same thing time after time and
expecting a different result is the classic definition of madness –
that the electorate will again choose PDP candidates, perhaps consoling
themselves that the problem isn’t with the party, but with the people
it presented in past elections.

No, the trend I’ll
be watching for is whether one group that has been loud about its
entitlement (but short on everything else) will have any discernible
impact on the vote. ‘De yoot’ (not to be confused with their English
counterparts, ‘va yoof’) were on the lips of every candidate this
election. Perhaps, having seen what young people claim as their
achievement in the ‘Arab Spring’, our politicians thought that they had
better appear deeply concerned about the condition of our own ‘yoot’.

Even if they
hadn’t, ‘de yoot’ themselves have been insisting that since they are
over 60 per cent of the population, they are entitled. The National
Population Commission classifies only those between 18 and 24 as youth,
but assuming that they are including the under 18s: the 2006 Census
puts the 0-24 years population at 64 per cent of the total.

That’s a bigger
percentage than, for example, Nigerian women, who scraped in with an
anomalous 49.2 per cent of the total population, but who, thanks to the
Beijing Declaration and Platform of action, are supposed to have 35 per
cent of all appointments.

What is more, Mr.
President himself (at the end of a ‘debate’ in which the only woman
participating was the timekeeper whom he resolutely ignored) has
undertaken to keep the promise made at Beijing in 1995. True, he didn’t
explain what stopped him from achieving 35 per cent in the year that
he’s been in power so far, but the all-male panel didn’t ask him.

And his Congress
for Progressive Change challenger, whose military dictatorship started
the ball rolling by insisting that each state must appoint at least one
woman as a commissioner, wasn’t there to trumpet his own credentials …

In an election
when even middle-aged ‘uncles’ of 50 are touting themselves as ‘de yoot
candidate’, it isn’t surprising that young people tried to make
themselves a big story in the ongoing elections. Though it wasn’t quite
clear what they felt their numbers entitled them to.

If as long ago as
1991, the Population Commission recorded that 59 per cent of household
members searching for work were the children of the heads of those
households, the woeful failings in education and employment that have
characterised the intervening 20 years must be at least as worrying to
their parents as they are to ‘de yoot’.

Had numbers alone
justified special recognition, the status of the ‘giant of Africa’ with
its claim to house one fifth of the world’s black population ought to
reflect that. But it doesn’t. Worse still for ‘de yoot’, if the group
classified by the NPC as ‘children’ – the under-18s – are stripped
away, they shrink back to a much less impressive 13 per cent, with the
remaining 51 per cent left to whistle Eddie Cochran’s old Summertime
Blues song: ‘I’d like to help you son, but you’re too young to vote’.

Still, de yoot’s
insistence on their own importance seems to have won at least one
convert: at the end of last month an old-timer who started his own
(unsuccessful) campaign with the flat assertion that young people are
not qualified to run Nigeria, apparently discovered that they are
exactly what the country needs. But will the vote reflect that?

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Election delay may not bring down naira

Election delay may not bring down naira

The naira may not
necessarily come under uncontrollable pressure due to the delayed
elections, according to some finance experts.

Victor Ndukauba,
investment research analyst on banking and infrastructure, Afrinvest, a
finance research and analysis firm, said though there has been an
accumulating pressure on the naira, “the delay in elections would not
translate to an uncontrollable pressure on the naira.”

Afrinvest had
earlier stated in its outlook that it expects strong pressure on the
naira to persist in the coming weeks, as speculative demand for the
dollar becomes heightened by current political uncertainties
surrounding the forthcoming elections.

Gali Suleiman
Kabiru, a bureau de change operator in Lagos, said the naira has
strengthened to N157 to a dollar today from N159 last week, at the
black market. He said he cannot explain the factors behind this
appreciation, especially during this election period.

“We cannot say that
this is why this is happening. The commercial banks, to a large extent,
determine the movement of the naira, and we know that it is also an
effect on demand and supply at the forex market,” Mr. Kabiru said.

He also said it is
a possibility that most of the politicians that used to speculate on
the naira and play some other funny tricks on it are busy with the
elections and have less time for speculations. “So, we think that the
naira would even strengthen during this period,” he said.

The Independent
National Electoral Commission (INEC) on Sunday postponed by a week the
parliamentary elections initially scheduled for last Saturday.

“Interestingly,
markets have not significantly reacted to this development. On the
Forex side, the inter-bank rate actually appreciated to 154.0 on
Monday, driven by increased dollar supply from oil companies, even as
demand remained high at the WDAS auction (USD525.8m),” Samir Gadio,
emerging market strategist, Standard Bank, said.

According to Mr.
Gadio, the naira actually appreciated to some extent in recent days to
about 153.9 as at 6 April because of Forex sales by oil companies, but
the exchange rate still remains relatively under pressure, ahead of the
forthcoming electoral cycle.

“On the upside, we
have not seen a depreciation following the postponement of the 2 April
2011 parliamentary elections, but there is still a possibility that the
naira could weaken over the next two weeks on the back of speculative
pressures, rather than structural factors.

“That said, we
expect the currency to ultimately appreciate as political risk eases in
late April, but also because of the tighter monetary policy stance,
which means going long naira at this stage remains an attractive
opportunity,” he added.

Telling on the naira

Renaissance Capital, an investment bank, however, says the naira’s performance will reflect protracted uncertainty.

“Elections,
particularly in Sub-Sahara Africa, are typically accompanied by
increased levels of uncertainty. The prolongation of the electoral
period only adds to the levels of anxiety amongst all stakeholders
including the electorate, business and investors, who all want to see
the completion of successful elections,” the bank said.

The firm says the
naira, which has already been weighed down in recent weeks by
electioneering, weakened further earlier in the week to N155.2 per
dollar, as nervousness prompted some to sell-off their local currency.

“The naira is
expected to continue to come under pressure during April. Once the
elections are behind us, fundamentals are expected to play a stronger
role in determining the value of the naira. Postponed poll delays the
return to ‘business as usual’. This postponement of the polls not only
protracts the period of uncertainty, but also delays the
decision-making process, both in the private and the public sector,” it
further said.

Industry watchers
say it is better to run a delayed-but-credible poll rather than rush
and compromise the integrity of the electoral process, with the results
being almost immediately challenged in court even though new government
administrations usually take a while to settle into their respective
offices before the business of government resumes, the implication
being a delay in the economic activity.

“We expect the
one-week delay to have a modest effect, given the short time period, on
the resumption of economic activity,” Renaissance Capital said.

The Central Bank in
its last Monetary Policy Committee held in March reiterated that it was
keen to preserve exchange rate stability around the 150 naira to dollar
level, as any substantial currency depreciation would have a negative
impact on other macroeconomic control variables such as inflation.

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ANALYSIS: Jonathan’s transformation agenda on economy

ANALYSIS: Jonathan’s transformation agenda on economy

Goodluck Jonathan,
the presidential candidate of the ruling Peoples Democratic Party
(PDP), has promised to consolidate his administration’s achievements on
the economy, particularly in ensuring that the country attains stable
power supply, while agriculture is commercialised and mechanised to
provide employment to the youth as well as build a stable economy.

His manifestoes,
called ‘Agenda for Transformation’, launched as part of his political
campaign, hinges on a commitment to build an inclusive society where
job creation constitutes a major pillar for economic growth; provision
of cheap and long-term capital for businesses; removal of barriers to
increased productivity; as well as improvement on the environment for
doing business.

He is convinced
that the expansion and development of the downstream sector of the oil
and gas industry would provide about one million jobs for Nigerians,
while the continued expansion of the production capacity in the
upstream sector of the oil and gas industry would earn more revenue to
the country through increased crude oil exports.

Access to development

“Nigeria needs to
build a more inclusive society where every Nigerian would have equal
access to economic and developmental opportunities,” Mr. Jonathan
declared in his blueprint for economic transformation, which also
promises additional economic benefits, including safeguarding the
country’s macro-economic stability.

To ensure that the
improvement in domestic economy impacts on poverty, Mr. Jonathan has
pledged to provide adequate access to economic resources, to help small
businesses grow.

Through the
instrumentation of the Presidential Committee inaugurated last year to
devise ways of enhancing government’s programmes on job creation and
poverty reduction, a N5 billion Business and Development Fund was
established by the Bank of Industry (BOI) in collaboration with the
Dangote Foundation (DF), to provide soft loans to entrepreneurs engaged
in micro, small, and medium scale businesses in the country.

The fund, which
would grant entrepreneurs access at overall single-digits interest rate
of 5%, will be utilised for term loans, working capital loans, leasing
of industrial/business equipment, and trading and allied businesses.

“The provision of
cheap funding to SMEs will come as a great relief to entrepreneurs who
need to reduce their financial costs as they try to deal with high
production costs for generating power and providing other operational
infrastructure,” the president said.

Besides, he said
his administration will continue to support infrastructure for the
development of Small and Growing Businesses (SGBs) by boosting the $500
million intervention fund already in place to enable the BOI and
Nigerian Export-Import (NEXIM) Bank continue to lend at single-digit
interest rates, to facilitate increased access of small businesses to
finance, as well as develop Nigeria’s enterprise culture.

Enterprise
Development Centres, Industrial Clusters, and Job Centres are to be
established to collaborate with the Small and Medium-scale Enterprises
Development Agency of Nigeria (SMEDAN) and 23 Enterprise Development
Centres (EDCs) across the country, to provide business skills training
aimed at improving the managerial capability of entrepreneurs.

At the Job Creation
Summit he hosted last week, Mr. Jonathan reiterated his determination
to initiate various intervention programmes in the key productive
sectors of the economy in all states of the federation, based on their
comparative advantage, to provide incentives for the flow of capital to
the real sectors, to increase productivity and achieve widespread
employment generation, especially for urban and rural youth nationwide.

This is aimed at
creating about 1.5 million income generating employments in the labour
intensive sectors of the economy, namely agriculture, manufacturing,
and building and construction.

Consolidating reforms

In broad terms, Mr.
Jonathan says he hopes to build on the momentum in the
telecommunication sector reform, by replicating the open competition
philosophy in the power sector, where a roadmap has already been
unfolded to drive his administration’s policy option at achieving set
targets.

In the process, the
PDP flag bearer says he has already made it clear to the private sector
operators (formal and informal) as well as local and foreign investors
that he will not hesitate to clear all vested interests that would pose
a threat to quick policy implementation and rapid economic
transformation.

Other proposals
include the consolidation on the Public Works Programme (PWP) to create
1.5 million jobs this year, while a Growth and Employment Pact (GEP)
would enable public-private partnership to enhance growth in
construction, ICT, hide and skin, tourism and entertainment sectors.

Besides, he
believes the power sector roadmap launched last August is on course and
would help improve significantly the country’s electricity supply level
within the next six months when most of the National Integrated Power
Programme (NIPP) projects come on stream, and the transmission and
distribution aspects of the electricity chain are repositioned.

He has also given
assurances that the reforms in the petroleum industry through the
Petroleum Industry Bill (PIB) would lead to the diversification of the
sector’s capacity to generate more jobs and create wealth for Nigerians.

At the launch of
what he calls a ‘gas revolution’ in Abuja, Mr. Jonathan said his
government hopes to partner with the private sector to invest over $25
billion to help transform Nigeria into a petrochemical hub in Africa,
with particular emphasis on stimulating the economy to create over one
million direct and indirect jobs in the country.

Are all these campaign rhetoric or well planned agenda? Time will tell.

TOMORROW: CPC Buhari’s agenda

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Exchange to broker settlement among major Transcorp shareholders

Exchange to broker settlement among major Transcorp shareholders

Following the
misgivings arising from the strategic investment in Transcorp Plc, the
Nigerian Stock Exchange (NSE) is to mediate truce between the two
disputing parties.

A statement by the
Exchange yesterday by its senior manager corporate communications, Wole
Tokede, assured the investing public of the safety of the transaction.

“We wish to assure
the investing public that the parties involved in the transaction have
been issued letters to attend an all-parties meeting, consistent with
our desire to forge a ‘free market’ bound by rules and best practices,”
Mr. Tokede said.

Heirs Holdings
Limited, a private investment vehicle, had on Tuesday said it has
acquired a strategic stake in Transcorp Plc, but the company is
disputing this. However, the Exchange stated that investors are free to
take any investment decision, so long as it conforms to the rules of
the market.

“The Exchange
respects the right of investors in the market to enter into commercial
transactions as they deem fit and within the rules and ethics of the
bourse,” the statement said.

According to the
NSE, HH Capital Limited, through its brokers – BGL Securities Limited,
informed the bourse of its desire to cross 1,970,754,364 units of
shares from willing sellers on March 31, 2011.

“In the course of
the review of the transaction, the Exchange realised that one of the
willing sellers was legally not in position to engage in such a
transaction and this was immediately cancelled,” it stated.

Transcorp’s petition

Last week,
Transcorp sent a petition to the Securities and Exchange Commission
(SEC) claiming that the huge volume trading on its shares on March 31,
2011 was not consistent with market rules.

The firm stated
that a total of 2.51 billion units of its shares representing 10 per
cent of the company’s issued share capital were traded in a single day,
and were shocked at how the transaction was approved by the Stock
Exchange, without information and consent of shareholders and the
company.

“The board and
management hereby object to such a transaction and request that due
process and the provisions of law be allowed where an individual or
group of individuals are interested in a controlling stake in the
company,” the management of Transcorp said.

Heirs Holdings
Limited, in a statement by its director of marketing and corporate
communication, Jenika Mukoro, said that Transcorp shareholders will
benefit from the transaction.

“Our chairman, Tony
O. Elumelu, who was a founding director and investor, believes strongly
in the founding vision of Transcorp as a means for Nigerians to access
the abundant economic opportunities present in the country through the
capital markets,” the statement said.

Shareholders benefit

Victor Ogiemwonyi,
the managing director of Partnership Investment Company Limited, an
investment banking and brokerage firm, said the move would benefit the
shareholders.

“There is nothing
wrong with the transaction. Somebody has bought the shares and he
disclosed his interest. That is all the law requires,” Mr. Ogiemwonyi
said.

According to him, the entrance of a new investor would bring fresh ideas into the company.

“My hope is that
they will rid the company of its bad assets and invest massively in the
tourism and hospitality sector. Tony (Elumelu) has a track record of
turning things around and I hope he will continue with Transcorp,” he
said.

Following the
botched purchase of the national carrier, Nigeria Telecommunications
Limited (NITEL) in June 2009, shareholders of Transcorp had been
waiting on the sidelines, as its share price slumped from a high of
N9.70 to the minimum 50 kobo.

However, hope was
rekindled when Transcorp entered into a joint venture agreement on
March 1 with SacOil Holdings Limited of South Africa (SacOil) to
develop its oil field in collaboration with Energy Equity Resources
Limited (EER).

Sacoil paid $30
million to acquire 20 per cent of the lucrative OPL 281. Since then,
the company’s shares have been on the increase.

However, the firm’s
shares began to record tremendous upswing when information filtered
into the market that a new entrant was taking position. Since then, the
price has risen steadily, closing on yesterday at N1.33, a growth of
166 per cent in less than five weeks.

Transcorp has interests in hotels, agriculture, oil and gas sectors.

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Export bank to guarantee local industrialists’ credits

Export bank to guarantee local industrialists’ credits

The
Nigerian Export-Import Bank (MEXIM) says it is considering a credit
guarantee scheme for local small-scale industrialists. This is to
ameliorate the difficulties they encounter in securing credit
facilities from commercial financial institutions for their operations
and products exports.

The
bank’s managing director, Robert Orya, told NEXT in Abuja yesterday
that Export Credit Agency (ECA), which is mandated to provide risk
bearing and credit facilities in support of the country’s non-oil
export trade, is already in talks with top officials of the Nigerian
Association of Small Scale Industrialists (NASSI) to explore prospects
of developing a memorandum of understanding (MoU) for mutual support,
particularly as it concerns exportable goods, export and import
financing, capacity building, and strengthening of strategic alliances.

“We
hope to explore all avenues to build and strengthen the capacity of
small-scale industrialists and other categories of businesses by
guaranteeing credits to those that lack the requisite collateral to
secure loans from DFIs.

“But
the support would come only after the prospective beneficiary has met
all the requirements set by the Central Bank of Nigeria (CBN) for such
facilities,” Mr. Orya said.

Succour to industrialists

According
to Mr. Orya, a recent meeting with the NASSI officials had revealed
that most small-scale industrialists who neither have technical
capacity nor the requisite collateral to obtain loans and other
facilities from Development Financial Institutions (DFIs) often end up
being frustrated out of business, in total negation of government
objective to boost the country’s Small and Medium-scale Enterprises
(SMEs).

NASSI
president, Chuku Wachuku, said recently that problems often encountered
by manufacturers of exportable products in the country are usually
associated with the dearth of export incentives, lack of export-related
loan facilities to enhance the capacity to produce for exports, to earn
foreign exchange for the country, as well as absence of credits for the
acquisition of relevant machineries to manufacture value-added export
products.

Other
problems include the difficulty in establishing Letters of Credits
(LCs) to facilitate international trades, inability to enter into
bilateral and multilateral agreements for cross-border deals with
small-scale industrialists in other countries, and difficulties in
creating windows for the collateralisation of loans on special
facilities granted to industrialists.

But
the NEXIM boss, who described small-scale industrialists as the engines
of the private sector as well as catalysts for Nigeria’s economic
growth towards achieving the Vision 20:2020 goals, said the bank is
ready to commit its resources into any activity that would help achieve
its mission through the diversification of export-oriented investments
in the manufacturing, agriculture, solid minerals, and services
sub-sectors of the economy.

Acknowledging
the relationship between NEXIM’s mandate and that of NASSI,
particularly regarding the development of SMEs as well as facilitating
more investments in the identified sectors, Mr. Orya said that the
provision of adequate funding for export-induced value-added activities
for small scale industries would boost government’s effort in this
direction.

He
also said strengthening the Start-Your-Own-Business (SYOB) programme,
NEXIM’s self-employment initiative in partnership with the National
Directorate of Employment (NDE) for unemployed graduates and retirees,
would help in checking the high rate of unemployment in the country,
while NEXIM/NEXPORTRADE House Limited (NHL), a public-private
partnership initiative, would facilitate formal cross-border trade and
investments among member states of the Economic Community of West
African States (ECOWAS) and other African countries.

“NEXIM
has always supported SME start-up/green fields projects in various
sub-sectors of the economy, most of which have grown to be amongst
CBN’s top 100 exporters.

“From
inception in 1991 to date, we have intervened in the major sectors of
the economy, by disbursing over N60 billion and $273 million through 52
participating banks to over 400 beneficiaries, including 150 industrial
projects, in the manufacturing, agriculture/agro-allied, solid
minerals, oil & gas, and services sectors. Also, the bank has over
the years purveyed funding,” Mr. Orya said.

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