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Nestle Nigeria Grows Profit by 140%

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Chairman,  Nestle  Nigeria,   Olusegun Osunkeye

 

As investors continued to savour the N12.55 dividend per share they received from Nestle Nigeria Plc for the year-ended December 31, 2011, the company has begun 2012 on a positive note.

The company has announced a growth 140 per cent  in  profit after tax  from N2.571 billion to N6.173 billion for the first quarter ended March 31,  2012.

Specifically,  Nestle recorded a  turnover of  N28.674 billion in Q1 of 2012, showing an increase of 41 per cent above the  N20.383 billion in the corresponding period of 2011.

Gross profit rose by 42 per cent from  N8.419 billion to N11. 997 billion, while  profit before tax  soared by 113 per cent  from N3.455 billion to N7.349 billion.

A statement by the Corporate Communications and Public Affairs Manager of  Nestle Nigeria, Dr. Samuel Adenekan, last Friday, quoted the board  of directors as describing the  Q1 results as exceptional and in line with management expectations.

“The good performance in the period under review was attributed to capital investment in various infrastructural upgrades at Agbara (Ogun State) factory as well as additional sales activities in March,” the directors said.
According to the company, additional ‘stock build’ was required in Q1 one for a smooth transition to a new ultra-modern distribution centre under construction in Agbara.

“The new N5.4 billion warehouse facility is designed to manage the capacity increases following massive infrastructural upgrades at Agbara factory in the last four years for volume increase. Once completed, it is expected that the new distribution complex will see the company growth for the next 10 years,” the  directors   added.

They added that that these  results should not be extrapolated for the rest of the year, assuring stakeholders of continued commitment of Nestlé management to the earnings forecast for 2012 already communicated to the Nigerian Stock Exchange.

Speaking at the company’s annual general meeting recently, its chairman, Chief Olusegun Osunkeye said its impressive results in the recent years and 2011 in particular resulted from Nestlé Continuous Excellence.

“This an initiative in operational efficiency which enables the company to eliminate waste, increase efficiency and effectiveness, and improve quality in all operations. The company was able to maintain the positive momentum towards sustainable, profitable and capital efficient growth because of the mix of short –term performance with long-term thinking. This enabled Nestlé to deliver improved top and bottom-line performance whilst also investing in longer-term growth platforms,” he said.

He added that in pursuit of the company’s nutrition, health and wellness agenda, Nestlé had implemented relevant innovation targeting the needs of low-income consumers most likely to suffer from micronutrient deficiencies.

 

Source :Thisday

A Nation Under Fire – Dele Momodu

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“Everything continues in its state of rest or uniform motion
Except an external force acts on it”
– Isaac Newton, First Law of Motion

Fellow Nigerians, it must be miserably obvious to everyone by now, except the incurable optimists, that Armageddon is here. You don’t have to be a prophet of doom to foretell the apocalypse that has enraptured our embattled nation. If we ever thought otherwise, those who should know more than the rest of us have succeeded in jolting us out of our somnambulism.  And it has been a rude awakening from a deep slumber that could only have been an act of the almighty.
First, came the bombshell from no less a personage than our National Security Adviser, General Andrew Owoye Azazi. The occasion was an innocuous event tagged The South South Economic Summit, which had been a gathering of distinguished speakers, eminent personalities and assorted spectators, from far and near.  No one had anticipated any more volcanic eruption after the volatile delivery by the one and only Kongi of Africa, Professor Wole Soyinka. In fact, my belief was that everything was going to be an anti-climax after listening to the Nobel Laureate in what must have been one of his best performances in recent times. General Owoye Azazi put paid to my prejudice.
When the former Chief of Defence Staff took the podium, I was looking forward to one of those government rigmaroles, or a pot-pourri of lies that would wake up the dead in Bethlehem. But General Azazi turned out to be a born again preacher who sneaked into our consciousness unannounced. He was expected to speak on the state of security in Nigeria and address how it affects the South South, the region that currently lays Nigeria’s golden eggs. Thanks to Channels Television, I was glued to my screen and watched as General Azazi waltzed his way through a most delicate and sensitive topic.
He had started on a calm note and built his thesis, slowly but surely, to a resounding crescendo. His famous moment came when he suddenly exploded like an Iraqi bomb and placed the blame for the general insecurity in Nigeria at the doorsteps of no other than the ruling party, PDP, thereby committing an unprecedented heresy that would haunt him and the government he represents. The appreciative crowd had nudged him on with a thunderous ovation as he fired the first salvo. As if that was the tonic he badly needed, he paused to acknowledge their cheers, before firing more bullets from his well-oiled cylinders.
General Azazi was not just saying what many of us had always known or suspected, he said it with a straight poker face. He was eloquent and magisterial. But he had chosen to hold the tiger by the tail. I knew that the PDP hawks were going to come after him with a vengeance and try to shoot him down with the efficacy of American drones. It is in the character of these rascally guys to maul down anyone of their own whoever goes against the commandments. None of their members has ever been prosecuted for corruption until he falls out of favour with the Party’s political godfathers and warlords.
But I doubt if General Azazi was not aware of the unwritten codes or he just chose to challenge fate and secure his own future. His speech was a veritable distraction that President Goodluck Jonathan did not need. He had suffered enough nightmares in the last couple of months and could do without more. But his most trusted ally and kinsman had chosen to tell in public what he had probably told him privately without any useful impact. If nothing ever moved our dear President in the past, this act was guaranteed to move mountains and elicit some shock waves in high places. And it did.
A devastated Jonathan was visibly embarrassed to the extent that he had to offer a tenuous excuse that his National Security Adviser must have been misquoted; a perfect alibi for a bruised ego. As I write this piece, the storm is still raging and its eventual destination is not yet known. What is most certain is that things are no longer at ease and the centre may no longer hold.
As if that was not bad enough, Lt. General Theophilus Danjuma came out to tell it in his characteristic manner that Nigeria was under fire and may be heading for the atrocious way of Somalia. For those who have studied the life of Lt. General Danjuma, he’s not someone who’s given to frivolities. On a regular day, Danjuma’s taciturnity is legendary while on a special day his words are few and carefully chosen. He minds his own business, and he is very astute at it. Love him or loathe him, General Danjuma has demonstrated that there’s life outside power, and that army retirees can run businesses successfully without waiting for hand-outs from their successors. He’s one of our most respected retired Generals at home and abroad, and when he speaks, he’s the voice of the military fraternity. He’s fearless just as he’s feared by his contemporaries and subordinates.
I know for a fact that General Danjuma only comes out once in a blue moon to intervene in public discourse. When such a man speaks, we must listen. A few days ago, he spoke like the oracle that he is. It is not a mere coincidence that two army Generals who literally walk in the corridor of power spoke the minds of millions of Nigerians within one week. What they are telling us in very few words is that when a handshake goes beyond the elbow, something has gone terribly wrong. The situation in Nigeria has become totally dangerous with the entire citizenry going neurotic. Everywhere we turn, the story is bad news and unmitigated disaster. The Somalisation of Nigeria, as Danjuma describes our precarious situation, would certainly spell doom for Nigeria and ultimately the whole of the Africa sub-region, and indeed beyond. It is one major reason why the interventions of these experienced, retired army Generals should not be dismissed with the usual lackadaisical attitude of the ruling government.  This is not the best time to bury our heads in the sand like the ostrich and pretend that all is well with us. If we don’t know where we are going, we should at least remember where we are coming from. Only fools travel, the way we do in these parts, without having a map of our direction.
Now that bombs are flying undetected like UFOs, the time has come to accept our helplessness in handling the Boko Haram issue in particular. It is obvious that those who want Nigeria destroyed at all costs are more powerful and determined than those saddled with the responsibility of protecting our nation. Even the league of senior Christians seems to have lost all hope in a man they fervently supported only this time last year. They are no longer in doubt that their man lacks the capacity to combat a crisis of this magnitude while Boko Haram has left no one in doubt of its incredible capabilities. I will not get tired of pleading with our wonderful government to face brass tacks and firstly admit its gross inability to deal with common criminals and not tell us it can handle the highest form of terrorism ever known to many shores.
Someone should tell us how many Nigerian lives need to be wasted before our government owns up to its abject ineptitude and abysmal failure in protecting their lives and securing their properties. All we hear daily are empty promises that are never matched by any concrete action. As a matter of fact, presidential reaction has come in mere clichés. As someone noted on Twitter days ago, there seems to be a template for these releases and government only inserts the location of each new act of terror. This is because the words used are predictably similar and never good enough. Too many lives have already been wasted and those lives are too precious to their families if not the government. We cannot continue to hinge our hopes and faith in mere words of a failed leadership in a failed state.
If the President must know, I can tell him for free that his aides are not helping matters. They are too reckless and fatalistic. Their combative nature has made it impossible for them to listen to any voice of reason or wisdom. The added fact that they are completely paranoid and see the President’s enemies in even natural disaster is an invitation to more chaos. I suggest they purge themselves of the arrogance of “this is our time and we shall do what we like till the next election comes; we will battle you with more than enough money to win a second term mandate, and let the heavens fall” because this may turn out to be a fallacy and a misplaced delusion of grandeur.
Rather, what the Presidential aides need to do urgently is fight less and put on their thinking caps before our ship of state sinks like The Titanic. It costs nothing to be humble in power. Heating up the polity the way they are doing can only spell doom of unprecedented proportions.
Without being simplistic it is apparent that the major cause of the unbridled unrest in the Country is the extreme poverty in the land.  Poverty of self, education, ideas, development and the State itself have hands in our matter. Poverty is not always economic.  Government must take urgent steps to correct these anomalies which can only cause untold damage to our collective psyche.
Where do we go from here? A few tips will suffice for now. Government must begin to show some seriousness in handling the affairs of state by declaring visible austerity measures on itself. It would be useful to learn from our neighbours in West Africa how they have moved from penury to prosperity. Our education, for example, and other key areas begging for attention, will never improve if politicians continue to spend recklessly on themselves while neglecting their primary responsibilities to the people. Our President must find the courage and charms to gather all politicians and ignite a new vista of hope. He would succeed in doing this only if he can lead by example. The people under him are watching his expensive style of governance and would never agree to downgrade theirs. He needs to get experts to look at how politicians can be forced to cut down on the waste and drain of our resources, starting from the very top.
President Jonathan must urgently water down the powers, responsibilities and functions of the Federal Government by divesting government interests in many businesses, agencies and corporations. It is obvious to all reasonable Nigerians that central government has not been able to fix any of our problems despite the trillions that we have been pumping into various so-called projects of developmental value. This calls for a redirection of how we conduct business in Abuja.  These powers and functions must be transferred to the energetic private sector.  That is the major way in which our country can truly develop. Of course it is also necessary for true federalism to be practised so that the allure of the centre which is also majorly responsible for the crisis we are embroiled in can take on much less significance.
If our present style has failed to yield desired results, it is only pertinent to try something new and effective. Until we stop the rot in government and offer succour to the citizenry, we shall continue to build a community of frustrated and desperate people who are willing and ready to make life uncomfortable for the rest of society.
I can only hope that someone, somewhere, is reading and would be willing to act before it is too late.

Source :Thisday

Letter to Archbishop John Onaiyekan

By Pius Adesanmi

My Lord, the Archbishop of Abuja Diocese,

I am directed to write you this letter on behalf of the administration of his Excellency Dr Goodluck Ebele Azikiwe Jonathan, President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria. I am writing in reaction to a recent interview you granted Daily Sun about the security situation in the country. You were misquoted as saying that “there is definitely something wrong with government” and that “nobody believes anymore the story that we are on top of the situation”.

My Lord, although you did not name names, I am responding all the same because I subscribe to the truth in this Yoruba proverb, “Olowe m’owe ara e”: the target of an uppercut proverb surely knows himself, even if he is not named in the proverb. I recognise President Jonathan as the target of your proverb, especially the little part about not being on top of the situation. I must emphasise again, my Lord, that I believe you were misquoted, given the infinite capacity of our local journalists for mischief. However, I have decided to respond all the same, just in case the journalist who interviewed you got it right this time.

Although you reside here in Abuja, I am surprised that like Professor Chinua Achebe, who has lived abroad for too long, you are displaying a perplexing lack of familiarity with realities on the ground in Nigeria. Only someone who resides on Mars would look at the security situation in Nigeria and declare that President Jonathan is not on top of it. President Jonathan was quick to recognise that terrorism has been a global threat since September 11, 2001 and had the presence of mind and sense of judgment to realise that it is now Nigeria’s turn to be attacked by terrorists.

As soon as he had that epiphany, he took a bold step that no world leader has ever taken in the history of the war on terror; he reassured the Nigerian people that Boko Haram and other manifestations of terror would end in Nigeria in June 2012. No American president boasts this remarkable achievement. No European leader has ever been able to put a definitive expiry date on terrorism. President Jonathan did it. My Lord, if that is not being on top of the situation, I don’t know what is.

My Lord, Boko Haram is not the only case of terrorism that has highlighted President Jonathan’s remarkable acumen as a leader equal to the task of assuring the security of the nation. You will recall that he took the bold step of ending the fuel subsidy regime early this year. He struck a deadly blow against corruption and freed up subsidy money for investment in infrastructure such as roads, power, electricity, and hospitals. Enemies of progress in Nigeria, aided by Nigerian loudmouths abroad, ganged up against Nigeria in the so-called Occupy Nigeria movement. The Occupy virus spread and became a terrorist takeover of Lagos. Our Commander-in-Chief acted swiftly and deployed troops to Lagos to take the city back from the terrorists. My Lord, if this is not being on top of the situation, I don’t know what is.

Despite the challenges we still face from Boko Haram, the President has spared no effort in reassuring the international community of our commitment to the war on terror. More than any other Nigerian President before him, Dr. Jonathan has assured foreign investors to continue to flock to Nigeria and inject much needed foreign direct investment into our economy. He has urged them to ignore the threat of Boko Haram and go about their business peacefully in Nigeria. No American President has been bold enough to encourage people to ignore Al Qaeda. My Lord, if this is not being on top of the situation, I don’t know what is.

It is partly in recognition of the President’s giant strides in securing Nigeria and Africa that he recently made Time Magazine’s list of the one hundred most influential people in the world. Mr. President is humble and has not allowed all the recognition abroad to distract him from the work of the Nigerian people. As I write, seven hundred and seventy-four presidential committees are working hard on various assignments designed by the President. As you probably know, the Oronsaye committee recently submitted its report and the President swiftly promised to constitute a committee to look into the report and write a white paper on it. My Lord, if this is not being on top of the situation, I don’t know what is.

We suggest, my Lord, that you upgrade your knowledge of Nigerian realities before granting another press interview.

Yours sincerely,

Remember Ruben, PhD

Aso Rock Villa, Abuja

Source: Daily Times Nigeria

Between Terrorism and Corruption by Nasir El-Rufai

I am pleased to share my thoughts about two issues that confront our nation – terrorism and corruption. As a well-known opposition figure, I want to state clearly that the views expressed here are mine, and not of the political party I belong to – the Congress for Progressive Change. Secondly, my opinions are based on my interpretation of facts on the ground and research done by others, and not driven by politics.

At the crossroads that we have found ourselves as a nation, where a sitting government has shown no capacity and competence to confront these two challenges, we must be blunt in evaluating what has gone wrong – perhaps the moral outrage that results will be the basis for action to change things for the better. There are some preconceived and utterly wrong notions of where we are, how we got to this point and who to hold accountable that need to be questioned. There are narratives that are biased and not serving the nation well that need to be stated openly and sterilized. This is a duty beyond politics and partisanship, founded on respect for facts and logic. I will do my best to present some of these as a basis for our engagement. I thank you again for inviting me.

 

Terrorism and corruption are two words that now dominate our headline news more than any others. Domestic terrorism has now joined corruption as defining characteristics of our nation. It is sad that while other countries grapple with rebuilding their financial systems, upgrading their physical infrastructure and human capital, and adopting leapfrogging technologies to enhance their global competitiveness, our sensibilities are daily affronted by news of stolen trillions, multiple bombings and hapless leaders.

Terrorism
Terrorism is simply the use of violence and intimidation in pursuit of political goals. While to many, it appears to be a recent phenomenon in Nigeria, looking at it closely shows it has been with us in various degrees. What else do most of our political parties do other than use violence and intimidation in pursuit of political goals? Who else exemplifies these characteristics more than the ruling party? In the context of this definition, where would you place what OPC and Egbesu Boys were doing in the 1990s? What have the militants of the Niger Delta and their umbrella organization called MEND been doing for years? Now there is no dispute as to whether the anarchist Boko Haram is a terrorist organization or not. The truth is that one’s freedom fighter is the terrorist in the eyes of another.

Even with the activities of these fringe ethnic and regional groupings, Nigeria did not enter the map of terrorism-prone nations until recently. Maplecroft, a British risk analysis and mapping firm that publishes the Terrorism Risk Index (TRI) ranked our country 19th and at “extreme risk” of terrorism in 2011, ahead of Israel (20th) but safer than Yemen, South Sudan and India among others. With the escalation of attacks by Boko Haram in the north, and resumption of threats and hostilities by MEND in the Niger Delta, Nigeria is likely to jump to near the top of the TRI soon, unless something concrete is done.

Our nation and citizens are in grave danger. Our unity in diversity is at the highest levels of risk since independence. The possible break-up of Nigeria is being discussed openly not only in the Villa, but in various regional and cultural association meetings. Our democracy is in danger, and its desirable end canvassed by young people in social media. The state no longer has monopoly of violence, and no longer in exclusive control of our maritime borders. We are increasingly resembling a failed state with confused and corrupt persons at the helm of affairs who seem concerned only about enriching themselves and their coteries of choristers. How did we get to this point of near helplessness so fast?

Corruption

Corruption on the other hand refers to dishonest or fraudulent conduct by people vested with authority, and usually involves bribery or gratification. I think corruption is something Nigerians are sufficiently familiar with, so we do not need to spend a lot of time defining it. We all know it when we see it, and we see it often. For those in public office, I think the best way to determine whether that innocuous end-of-the-year gift amounts to a bribe, the question posed by Islamic jurists is appropriate – “Will this thing of value be offered to me by the person in question if I am not holding this public office?” If the answer to the question is not an immediate and unhesitant “Yes”, then the gift is a bribe, and should therefore be rejected.

You will notice I have carefully avoided referring to legislation, legal maxims and decided cases in defining either terrorism or corruption. It is not just because we have little by way of convictions for terrorism and corruption in our case law, but because many Nigerians have lost confidence in our justice system in its effort to deal with these terrible phenomena. For years, our nation has struggled with the reputation of being one of the world’s most corrupt nations. In 2002 we were amongst the bottom three, but with the emergence of EFCC and the implementation of several governance reforms between 2003 and 2007, we were out of the bottom thirty by the time the Obasanjo administration left office.

Under Nuhu Ribadu, the EFCC charged eleven former governors for corruption and money laundering. With the exception of Lucky Igbinedion’s ‘plea bargain’ arranged by Farida Waziri, none of the cases have moved forward since then. Several of them now sit in the senate and chair powerful committees. Our justice system has been lax and ambivalent about dealing with cases of grand corruption, as evidenced by the recent conviction of James Ibori in London after a federal high court in Asaba had dismissed over 100 counts of money laundering and corruption against him. It is not surprising that we are now back to nearer the bottom of the corruption league table.

According to Human Rights Watch (2007), the endemic nature of corruption in Nigeria has led to the loss of US $380 billion between independence and 1999. A Global Financial Integrity Initiative report dated January 2011 estimated that US $130 billion worth of illicit financial flows occurred between 2000 to 2008. Adding these numbers to the loss of nearly $7 billion to the fuel subsidy racket alone brings our national loss due to corruption to something in the region of US $600 billion from independence to end of 2011!

In 2008, Afrobarometer reported that 57% of respondents surveyed considered the Yar’Adua government as handling the anti-corruption war badly. The same survey revealed that 30% of respondents did not trust political parties. Transparency International’s Global Corruption Barometer 2010 painted a similar picture with 40% of household respondents judging the government’s war against corruption as ineffective, while political parties and the national assembly were perceived to be amongst the most corrupt bodies in Nigeria, side by side with the Nigeria Police.

This finding – that political parties, the legislature and the Police are the least trusted is not surprising because corruption takes many forms. Indeed, I am of the view that rigging elections is the foundation of all corruption because it confers power without legitimacy, and without responsibility. And in Nigeria’s fourth republic in particular, it has birthed not only financial corruption, but immorality, violent crimes and terrorism.

The scale and scope of corruption in Nigeria have moved from irritating road-side demands and under-the-table payments worth billions of naira per annum captured by officials to a multi-trillion naira business under Yar’Adua and Jonathan. Everywhere we bother to check, billions and trillions are being wasted or stolen – fuel subsidy, pension funds, inflated and unexecuted contracts, goods and services paid for that are never supplied, taxes collected but not remitted, illegal allowances and benefits collected by officials, and entire budgets for security diverted to private pockets. How did we get to this point of near hopelessness so fast?

The Unholy Trinity

Violent crimes, corruption and terrorism were referred to as the unholy trinity that would confront citizens and countries in the twenty first century by Shelley (2005). These constitute Siamese triplets that often go together. Some commentators like Sarup (2005) insist that corruption increases terrorism. Contributing at a debate about corruption in India, a judge, Justice Santosh Hegde opined that “terrorism is caused by a disease called greed.” He went to observe that “politics was public service, now it is business.” Do these sound familiar? Do these opinions apply to us in Nigeria in 2012?

In my humble opinion, our own version of the unholy trinity has roots in toxic politics, rigged elections and bad governance. Political ‘God-Fatherism’, transactional leadership and social injustice are the key manifestations of this trinity. They are a toxic cocktail that would bring down any community, nation or government sooner or later. We got to where we are because due to years of practicing a brand of politics that is neither democratic nor meritocratic, with elections that are mostly rigged in many parts of the country, and political parties that are capriciously controlled by a few people.

Undemocratic politics is based on the deployment of money, violent thugs and coercive powers of state machinery. In many states, politicians and parties have armies of “youths” that are fed with cheap drugs and then armed with machetes, swords and guns to attend political rallies and attack any perceived opponents of the party and candidate. For instance, in Bauchi, Isa Yuguda has his ‘sara-suka’ (attack and stab), Ali Modu Sheriff in Borno had his ECOMOG, and Gombe’s Danjuma Goje had his “Yan Kalare”. In Rivers State, Ateke Tom and Asari Dokubo were similarly trained and armed by the PDP initially to ‘win elections’.

What then happens after the elections are won and the supply of cash and drugs end? Society was left with young, bitter and hopeless people that happen to possess some dangerous weapons. The result – kidnappers for cash that metamorphosed into militants in the Niger Delta, kidnappers and armed robbers in the South-East and Area Boys and various NURTW thugs in the South-West, and Boko Haram in the North-East.

When ‘elected’ officials know for sure that they were not truly elected, but rigged their way to power, the organic link of accountability between the leadership and the electorate is broken. The ‘elected’ official panders to the interest groups that got his or her into office rather than the people – these could be the party Godfathers, the officials that wrote the results (INEC, Police and the SSS) or the thugs that snatched ballot boxes and so on. The structure and composition of these interest groups vary from state to state, but the overall picture is similar across the board.

Pandering to these narrow interests cost money with the result that diverting budgets, operating huge security votes and appointing hundreds of ‘aides’ that do nothing becomes the norm. It is when these interests are taken care of that the electorate is remembered. The overall outcome is capricious governance, discretionary application of resources and transactional mindset in governance. Little can be achieved under these scenarios, and this is what happens in most of our 36 states, the FCT and the Federal Government in most of the 13 years of ‘democratic’ governance.

Social and economic injustice is the sum total of these decisions and actions by the political leadership. Young people that have worked hard to get an education do not have equal opportunity to compete for jobs, because only those that are politically-connected get jobs even when they are the least qualified. The lazy drop-outs of the last few years have built mansions and drive SUVs because they were ‘youth leaders’ of the ruling party. Gutsy but brainless people that are willing to dance to the tune of the state governors end up as local government chairmen or in national or state assemblies as members earning hefty but illegal allowances for doing next to nothing.

Unintended Consequences

Our politics and its products completely inverted and reversed the incentive structure in our society. Merit, honesty and hard work ceased to be virtues in politics and public service. Sycophancy, servility and cunning were more useful qualities for getting ahead and succeeding. Our young men and women – about 4 million of them added every year to the population – have observed and appeared to internalize these distorted values. There is little or no sense of community in that generation just as the concept of social justice is unknown to them. Generally, there are just two types of young people now. The smart ones that wish to take advantage of the system and the honest but bitter ones that feel short-changed by our generation and the system they think we created.

With the exception of a minority of deeply thoughtful ones amongst them that can see through what is going on, most of our children have zero idealism. Many are uncouth, rude and abusive to everyone.They have no respect for their peers and seniors, and using the anonymity of social media, they vent their anger and frustrations on anyone that they believe is remotely responsible for their condition. They take no responsibility to be informed, educated or experienced. Such youths see everything through ethnic, religious and regional lenses. They only care about sex, expensive cars, music and European soccer leagues. When I compare the idealism with which we viewed the world in our younger days with what I read on Twitter, Facebook and BlackBerry Messenger these days, I am worried about the future of our nation (or more precisely, the lack of it.)

Another unintended consequence of our toxic politics is poverty, unemployment and income inequality. Nigeria boasts of a rapidly-growing economy but has 113 million living below the poverty line of a dollar a day. For an agricultural nation, it is a shame that 41% of Nigerians – nearly 70 million – are classified as “food poor” in 2010. The zonal distribution tells a deeper story. Nearly 52% of the people living in the North-West and North-East, 39% of the North-Central, 41% of South-East, 36% of South-South and 25% of South-West are hardly able to feed themselves.

Unemployment is the primary target of every sensible nation’s economic policy, but our policy makers seem quite content trumpeting our jobless growth. Nationally, at least one in every five able-bodied Nigerians willing and able to work has no job. Again, a sample of different rates for states show a more serious disparity. In Lagos only about 8% are unemployed, and 9% in Oyo State. In contrast, it is 39% in Yobe State and 27% in Borno – the birthplace of Boko Haram. Other states’ indices are Bayelsa (19%), Akwa Ibom (26%), Kaduna (25%), Kano (26%), Zamfara (33%), Benue (26%), Nasarawa (22%) and Anambra (21%).

Income inequality is another serious problem. According to the NBS, in 2010 65% of Nigeria’s wealth is owned by just 20% of the population. This effectively means that 80% of the population share between them only about one third of the nation’s wealth. This income inequality manifests itself in conspicuous consumption by a few side by side with abject poverty experienced by the many. Income inequality, unemployment and poverty have been shown to correlate strongly with increases in violent crimes in many societies. This cocktail is what US Assistant Secretary of State for African Affairs, Johnnie Carson referred to when he stated that Nigeria’s Boko Haram was capitalizing on popular discontent with bad governance in Nigeria in general and the North in particular. The fact that virtually all indices of development and progress have been deteriorating from 2007 in spite of being a period of high oil prices and production should make every thoughtful person to question what is happening.

Emergence of Boko Haram

In 2007, we had terribly flawed elections that brought Umaru Yar’Adua and several governors into office. In at least 14 states of the federation, ballot papers for the presidential election were being delivered when the results declaring Yar’Adua the winner were announced. The new president was decent enough to admit that the election that brought him to power was flawed and established a committee to recommend remedial measures. The judicial challenges to the various elections were going through the election tribunals slowly but surely.

The Yar’Adua-Jonathan administration inherited about US $50 billion in foreign reserves, US $27 billion in the excess crude account, and only US $3 billion in foreign debt. Yar’Adua inherited a country that was liquid and had a strong balance sheet, with BB- sovereign credit rating by both Standard & Poor and Fitch. The economic prospects were bright if the political economy was managed well. The twin deficits of electricity and rail transport were being addressed through the award of contracts to build seven new power stations and the Lagos-Kano dual-track, standard gauge railway line.

Over the ensuing four years, the federation earned another US $180 billion from oil and gas, import duties and taxes. By 2011, all these resources had been wasted with little to show for it. The excess crude account had been run down to less than $1 billion, the reserves drawn down to about US $35 billion and none of the rail and power infrastructure projects completed. What is significant is that since February 2010 when he became acting president, Mr. Jonathan has been borrowing an average of US $1 billion monthly, mostly by issuing bonds, thereby doubling our total debt levels to nearly US $42 billion and counting. The federal government is fast accelerating towards insolvency!

In April 2007, Sheikh Jaafar was murdered in cold blood while praying in his mosque in Kano by assailants that years later turned out to be suspected members of a sect to be known as Boko Haram, operating out of Bauchi State. However at the time the Sheikh was killed, an attempt was made to link the murder to the state governor Ibrahim Shekarau. This as we shall see, became a recurring pattern of behavior by the security agencies in cases of this nature – the politicization of terrorism.

In July 2009, Yar’Adua deployed the Nigerian Army to “crush” Boko Haram. The leaders of the sect were captured alive, or arrested from their homes and extra-judicially executed by the Nigerian Police. The sect believes that Ali Modu Sheriff, then governor of Borno State and the Commissioner of Police took the decision to wipe out its leadership, regrouped and went on what was essentially a revenge mission targeting the Police, the Borno State Government and other uniformed services of the Federal Government. That is how Boko Haram evolved from a largely peaceful, fringe Islamic organization to a vengeful sect and currently an anarchist threat to the Nigerian nation.

Initially, Boko Haram’s targets were symbols of authority (Police, Borno State Government, etc.) and limited geographic (Borno State) scope. The attitude of authorities to the sect’s (Northerners are killing one another, so we do not care, etc.) activities emboldened them, and when the first bomb was exploded by MEND in Abuja on October 1, 2010, the sect learnt a thing or two about grabbing national attention. As the media gave the sect attention, it mainstreamed its activities to first attack Yobe State then the Federal Capital Territory.

The watershed in the sect’s activities were the June 2011 bombing of the Police Headquarters and the August 2011 attack on the UN Headquarters. By these actions the sect established the capacity to operate in the nation’s capital, outside its original geographic location thus attracting national and global attention. Sadly, between 2009 and 2012, more than 1,000 people have lost their lives as a result of Boko Haram’s attacks in Maiduguri, Potiskum, Damaturu, Jos, Kano, Gombe, Kaduna and Abuja. In 2011 alone, Boko Haram attacked 115 times with 550 deaths resulting.

Socio-Economic Impact of Terrorism and Corruption

Terrorism raises levels of insecurity and fear among citizens. It results in movement and travel restrictions and curtailing of human rights. These have negative impact on investment flows and functioning of markets. These combine to reduce employment opportunities, wealth creation and capital formation.

According to the World Investment Report of UNCTAD, the Nigerian economy recorded a reduction in foreign direct investment from US $8.65 billion in 2009 to US $6.1 billion in 2010 due to the fear of Boko Haram. The Nigerian tourism sector which is worth some N80 billion annually has lost more than half of its value due to fear of terrorist attacks. The domestic air transport industry which generates some N3 billion annually has been hard hit by flight cancellations to destinations in the north, with nearly half of the revenues lost.

In Borno State, schools have been closed. In other affected parts of the north, normal social life is unlikely to return soon. In places like Jos, the city is so neatly divided along ethnic lines that the vibrancy and inclusion that has been its heartbeat has been lost for a long time to come. The recent attack on media houses and Bayero University has opened new areas and targets of the sect that should worry the authorities.

The north has been the hardest hit with the leading commercial centre, Kano being under military occupation since January 2012. Kaduna, a leading industrial centre has also been repeatedly attacked by the various shades of what is known as Boko Haram. Many of us believe that there are at least four variants of Boko Haram – the real BH and three other fakes that use the brand to advance their own narrow, self-centered agendas. Many in the North see the patent inaction of the authorities as the advancement of a sinister agenda to destroy an already near prostate northern economy through occupation, militarization and disruption of socio-economic activities. The federal government has done nothing to indicate otherwise, and the state governments have acquiesced to the cavalier attitude of the Villa.

Way Out of the Quagmire

Terrorism and corruption are big issues with no easy solutions. There are no silver bullets and no country has been able to eradicate corruption or be totally immune from domestic terrorism. I will make some suggestions here as a basis for discussion and way forward.

I do not think our anti-corruption strategy attacks the roots of corruption. In addition to the unsuccessful ‘arrest-and-charge’ approach that we have tended to focus on, I believe we must reduce cash transactions to the barest minimum. If all transactions are electronic, it will be harder for untraceable, illicit payments to be made. If Sanusi Lamido Sanusi’s efforts in cashless banking are complemented with a national ID system that can identify, monitor and audit every resident, and his or her financial transactions when a court order is obtained, it will be harder to take bribes and launder the money.

We also need to strengthen institutions by appointing decent people to head them, respect their tenures and appoint successors from within rather than bring in political hacks to do jobs that they are neither qualified nor trained to do. Our judiciary needs revamping. The last CJN has done incalculable damage to the the most important arm of government – because without an honest and decent judiciary, nothing will ever work in this country.

Terrorism is a harder nut to crack. I am of the view that a multi-track approach is necessary to increase the chances of its’ success. First, the prevailing narrative in the Jonathan camp must be discarded. This narrative is what the national security adviser tried to communicate at the Asaba summit of south-south leaders, but he was misunderstood by the media. Jonathan and his inner circle believe that Boko Haram is a northern conspiracy to prevent Jonathan enjoying his presidency. And northern political leaders like IBB and General Buhari are the sponsors and financiers of Boko Haram.

This narrative is believed by most Niger Delta leaders because of their own experience in organizing, training and arming the militants and providing funding for MEND during the period of ‘resource control’ agitations of the Obasanjo administration. Because theirs was a conspiracy of the political elite, they think the North must be doing the same. And they also feel that Boko Haram largely kills northerners or “parasites” as one presidential aide, Reno Omokri tweeted; so the more they are killed, the lesser the burden on the ‘oil-rich hosts.’ Another presidential aide actually said these words to an old ex-OPC friend of his in London in June 2011. With this narrative wired in the brains of Jonathan’s inner circle, they spent their first year trying to link some of us in opposition to Boko Haram instead of honestly tracking the real problems. While wasting time on us, the sect grew stronger, bolder and better trained. The first step therefore is to unwind this narrative and honestly ask the right questions.

It is of course disingenuous to believe the narrative, but I assure you that they believe it. Boko Haram’s first bloody confrontation with the authorities was under a northern, Muslim president in 2009. And Obasanjo is not a northerner but governed without Boko Haram. Anyone can see that it is indeed northerners and Muslims that constitute the bulk of the victims of the insurgency. And I think the insurgency escalated not because Jonathan became president by whatever means, but because the government did not care to address it early enough. Now things have spiraled out of control.

Secondly, I believe the fundamental roots of the insurgency challenge – rewarding those who take up arms against the state with the cash hand-outs called amnesty program has to be reviewed. Any society that rewards bad behavior with cash creates a moral hazard that may consume that society. Those giving out the cash should know that they are doing no favors to anyone. Indeed, they are fostering an entitlement culture that would ultimately be the undoing of that part of the country. Boko Haram does not appear to be motivated by money, so those thinking of an amnesty-like program may need to go back to the drawing board.

Thirdly, the corruption, inequality, poverty and unemployment cocktail that creates the breeding ground for violent crimes and terrorism need to be addressed through well-thought out and targeted programs of investment in education, healthcare, skills development and training, and infrastructure building that will provide employment opportunities in various communities. In addition, the authorities must criminalize the existence of political thugs by whatever name and of whatever description, and ensure elections are henceforth free, fair and credible. The political parties need to be reformed, leadership selection be guided largely by merit, while the electoral institutions need to be alive to their responsibilities.

Fourthly, as a medium term, structural measure, we must work to restore our federalism to the broad outlines embedded in the 1963 republican constitution, devolving more powers and responsibilities to the states and making the federal government less of a busy body. This would require that states like Bauchi whose annual internally-generated revenue is N7 billion should not run a government costing N58 billion because of monthly hand-outs from Abuja. Each state should learn to live within its means and seek to actively develop its comparative endowments. This also means the states would have greater say over their policing and security, natural resource royalties and taxation. State governors will then be compelled to use their resources better and not point fingers at the federal government.

Finally, in addition to reviewing the failed military strategy now in place and scaling back what has become the militarization of the north, the government must work with community leaders in Borno, Yobe, Plateau, Kano and Kaduna States to identify interlocutors that would enable honest discussions with Boko Haram to establish what they REALLY want. The arrest and prosecution of those that murdered their leaders would certainly be one demand, but there may be others that the government knows but would not want us to know. The Maitatsine sect was easily defeated in the 1980s because the surrounding communities despised them and their methods. The current situation in Kano and Borno States is one in which the military occupiers are killing more innocent people than Boko Haram, which injustice is tilting sympathy in their favor and against the Army. Unless the reckless killings of unarmed men, women and children stop, these communities would revolt sooner or later.

There is nowhere in the world where insurgencies like Boko Haram have been defeated purely through military force and occupation – ask the Americans about Afghanistan and Iraq, or the British about Northern Ireland. Those saying “crush them” should know that recent history of the war on terror is not on their side. We want a country that works for everyone, and this senseless loss of lives must end soon. The government that has the responsibility for our security must bend over backwards to deliver it. If they continue to fail in this regard, they will not be in

#Nigeria #Lagos Tanker Drivers Get 4 Days to Quit Apapa-Oshodi Express Road

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Apapa gridlock

 

 

By Gboyega Akinsanmi

 

 
Lagos State Government Thursday  issued a four-day ultimatum to all articulated vehicle drivers to desist from unauthorised parking along Apapa-Oshodi expressway or face harsh punitive measures.

 

The gridlock caused by the tankers has virtually brought to a halt economic activities on the axis, forcing the closure of many businesses.

The state government issued the ultimatum after an emergency meeting with the National Union of Petroleum and Natural Gas Workers (NUPENG), Petroleum Tanker Drivers (PTD) and Road Transport Employers Association of Nigeria (RTEAN) Wednesday night.

 

The state Commissioner for Transportation, Mr. Kayode Opeifa, who led his counterpart in the Local Government Ministry, Mr. Ademorin Kuye, and Chairman of the state Taskforce on Special Offence Unit, Mr. Bayo Sulaiman, to the meeting, said enforcement would commence next Monday.

Opeifa said the state government could no longer watch and fold its arms to allow such display of lawlessness in the state, adding that the tanker and trailer drivers who failed to comply would have their vehicles towed.

 

He said the state government “wants you to do business but it does not want you to inconvenient others. Enough is enough. We want to make sure the Apapa expressway, all through to Ijora bridge is free of traffic”.

“We want to see that the road that leads to Tin Can is also free and that the police station at Ijora to Port is free of traffic. We want to see that tankers on Creek Road are evacuated so that the road can be free,” he added.

 

He added that “all shanties under Liverpool bridge should be cleared. We seek your cooperation to ensure that your people remove their vehicles from the road. Those people whose towing vehicles have broken down on the road should also remove them”.

According to him, “we want to fix Wharf road, Creek road and the Apapa-Oshodi expressway. We also want access to Beach land estate.  Vehicles obstructing residents’ movement to the estate should be removed.”
Opeifa said the taskforce, officials of the Kick against Indiscipline (KAI), the state Traffic Management Authority (LASTMA), and other government agencies had been fully mobilised for the onslaught on the tanker drivers if they failed to evacuate their vehicles from the road by Sunday midnight.

 

Last Sunday, Fashola visited Apapa area and expressed disgust at the high level of nuisance perpetrated by the tanker and trailer drivers and vowed to dislodge them to allow smooth flow of traffic in the area.

Also speaking, Sulaiman said all routes to Apapa must be free, adding that tanker drivers should not cultivate the habit of parking their vehicles on the road as his men were ready to swing into action.
But Kuye appealed to people trading under the bridge at Liverpool to vacate the area as the place was known to harbour criminal elements in the state.

 

He said tanker and trailers drivers should not endanger the lives of people in the area as Apapa served as one of the hub of business activities of the nation.

It was gathered that representatives of the various unions at the emergency meeting agreed to comply with the ultimatum issued by the government.

Source :Thisday

#Nigeria FG to Compel Telecoms Firms to List on NSE

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 NSE Headquarters

By  Ndubuisi Francis    04 May 2012

 

The Federal Government yesterday said that it would compel telecommunications companies operating in the country to list their shares on the Nigerian Stock Exchange (NSE).

The biggest telecoms operators are MTN, Airtel, Etisalat and Globacom.
Minister of State for Finance, Dr. Yerima Ngama, who spoke at a forum where ministers unveiled their scorecard as part of the 2012 democracy day celebration and first anniversary of President Goodluck Jonathan’s administration, stated that the era where multinational companies would come to Nigeria and generate huge profit without the citizenry benefiting would become a thing of the past with the compulsory listing.

 

The minister said a lot was being done to revive the capital market, adding: “We know that most of us who invested in the market have lost a lot. Not because these companies are not known yet. In fact, many of the intrinsic values of their shares are higher than their market values but what is happening is that there is a loss of confidence by Nigerians.”

He said 81 per cent of all the trading on the NSE involves foreign investors, stressing that Nigerians were displaying a lukewarm attitude occasioned by what transpired in the capital market.

 

“We are also trying to encourage new companies to list on the NSE; we want to make sure that MTN, Glo, Zain (Airtel) and all the companies that are doing very well and making billions of profit should also list on the capital market so that Nigerians can also share from their profits,” he said.

The minister also added that the power generation and distribution companies that would be privatised would be compelled to list their shares on the NSE.

 

“The power sector is also another big business in Nigeria and we are working to ensure that when we are regulating the sector, we want to do it in such a way that one or two people will not come into the sector to form a cartel.

“So to avoid this, we are also going to make sure that distribution companies that will operate in that sector list their shares so that after their privatisation, Nigerians will be given the opportunity to buy shares in these power generation and distribution companies,” he said.

 

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy,  Dr. Ngozi Okonjo-Iweala, at the forum yesterday also disclosed that the launch of the Integrated Personnel and Pay System (IPPS) in 2010 had started yielding fruits, citing the N14 billion saved from the payment of pensions to ghost pensioners.

She added that in 2011, the Federal Government investments yielded N48.723 billion in dividends, operating surplus, rent, and privatisation proceeds even as the minister noted that appreciable progress had been made in re-directing credit to key sectors like agriculture, power and aviation at single digit interest rates.

Source : Thisday

The Rigmarole in Nigeria’s Aviation

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By Simon Tumba
Early this month I was watching Quest Means Business on CNN, and the story was on how Ryan Air, Europe’s second largest regional carrier was making efforts to cut cost, by cajoling its cabin crew into losing weight, which was aimed at reducing the weight on the aircraft, and further cut the cost of the airline’s operation. More cost cutting measures include, using less ice in the drinks served passengers and cutting the size of inflight magazines.
The lower the weight carried aboard the aircraft, the lower the fuel consumption, hence, the lower the airline’s cost of operation, of which fuel constitutes about 40 per cent of an airline’s operating costs. A reduction in the cabin, any cabin crew weight, from 100 kilos to 50 kilos, would save the carrier about GBP 5,000 monthly or annually.
But what got me thinking was another angle to the story that Ryan Air had planned to remove the arm rests to its seats in order to reduce weight of the aircraft; all in a bid to cut cost! The airline, last year, removed two toilets out of three in its fleet, in a cost cutting plan aimed at reducing fares. Ryan Air’s business mantra is to offer low fares, no matter what, without compromising safety.
Unfortunately this cannot be replicated in Nigeria for three major reasons: most Nigerian carriers are in business with no knowledge of the nitty-gritty of the business; they lack a decent business plan, business model and innovative ideas on how to approach the business with reasonable expansionary strategy. Secondly, there is lack of suitable credit lines from the banking sector and harsh government policies and economic climate prevalent in the industry. A third reason is that the Nigerian Civil Aviation Authority (NCAA) would not permit innovative ideas like Ryan Air’s, either because of political pressure, ignorance, or both.
About two years ago, an innovative Nigerian carrier decided to launch low fares mixing and matching its pricing strategy along a rejuvenated Business Class, but that drew the flak of NCAA, which insisted that the model was anti-competitive and unwelcome in the Nigerian market. There were all kind of claims that the airline was over selling seats and diluting the market. It was alleged that a foremost and dominant carrier which was losing market share to this innovative was behind the pressure mounted by NCAA.
But quite frankly, airline business is not a Jankara market business. It requires strategic thinking on how to develop a brand, identifying a niche market, targeting market audience, reaching them, knowing what makes them tick, keeping customers loyal to the brand, et al. The business truly turns men mad, as they grow grey hair overnight! It’s a very thin margin business where the best run airlines make an average of 10 per cent return on investment. Over the last 50-60 years airlines have made more loses than profits.
A market largely dominated by foreign carriers, is bound to create problems as is being witnessed with the EU carriers, especially British Airways, which appears to be the scapegoat. BA has been in this market for over 70 years, and over this period has developed brand loyalty for two or more generations in some families.
The recent wave of anti-BA sentiment is unnecessary and misplaced for many reasons: It puts Nigeria on the wrong side of investment map, especially in the airline industry. After the Justice George Oguntade panel struck out the case against BA and Virgin Atlantic, someone thought they had to get their pound of flesh and the fare discrimination campaign was resurrected with so much frenzy and misplaced national sentiment. Truly, there is a huge fare disparity between Ghana and Nigeria in the premium cabins, and it takes a discerning mind to know why this is so.
Fares are generally a combination of many factors: cost of operations, market profile, capacity, etc. A major factor many fail to understand is that the profile of Nigeria’s airline market, based on capacity, probably has one of the highest demand for premium seats in the world. On the supply side, only BA offers First Class seats directly to London, with a total of 28 seats a day. There are 168 Business Class seats daily in the Nigerian market on Arik, BA and Virgin Atlantic, making a total of 196 premium seats a day directly to the UK.
Nigerians are globally known for their flamboyance and high taste for the good things of life, including air travel. An average Nigerian millionaire travels First or Business Class. Nearly 60 per cent of Nigerians in the premium cabins are paid for by the government. Check this roll call of government officials who travel in premium cabins at least once or more a year: at the state level, speakers of the 36 houses of assembly with their spouse(s), 108 first class chiefs (traditional rulers), 36 governors and their spouses(s), 72 deputy speakers/governors with their spouse(s). Others are at least 500 commissioners, aides of the governors, state legislatures and directors in the ministries and parastatals, chairmen and councilors of 774 local governments.
At the federal level starting with the presidency, we have special advisers, senior special advisers and permanent secretaries, 42 ministers and their advisers, directors; the legislature covers 109 Senators and 360 members of the House of Representatives as well as their senior aides; and departments and agencies of government includes security agencies, heads of parastatals and their directors. In the judiciary, starting from the Supreme Court, Appeal Court, Federal High Courts and State High Courts, Sharia and Magistrate Courts, we also have judges and grand khadis who also fly in premium cabins overseas.
This gives a significant picture of the premium market in Nigeria. That is why the EU carriers are inundated with calls to confirm the seats of ministers, legislators, governors and other officials who may be on the wait list. The premium cabins have been elevated to a form of status symbol, where you need to belong to be reckoned with. Where in the world do you have ministers and legislators travelling in premium cabins regularly?
In January 2012, Prime Minister David Cameron of Britain, the world’s seventh largest economy, travelled on a regular BA Business Class from London to Washington to meet President Obama, although that was against protocol. But that saved his nation over 200,000 GBP. He even rejected a First Class ticket. With this sense of modesty, Cameron ordered his cabinet members to fly Economy Class. In Canada, also, there are very stringent rules governing official trips of ministers. The issue is that if our politicians, civil servants and policy makers in government would cut their high taste for premium cabins, premium fares would drop.
The huge disparity in airfares in an equidistant zone is nothing new. Brussels a 45 minute flight from London, shares a wide fare disparity on the New York route (6 hours 40 mins from London and 8 hours from Brussels). Yet a First Class seat to New York from London is $14,800, while in Brussels it costs, $8,781; a Club World ticket costs $6,462 from London while it is $2,625 from Brussels. But the economy fare is cheaper out of London than it is from Brussels at $1,070 and $2,043 respectively – quite similar to the disparity between Ghana and Nigeria.
However, based on the Bilateral Services Agreement (BASA) signed between the UK and Nigeria, the latter has no business brow beating BA into reducing fares, or interfering in issues relating to fixing fares. Apart from anti-trust issues, for which we lack a law, NCAA has no basis interfering or commenting on the fares of airlines. The irony is that the same NCAA often presides over meetings with local airlines to increase fares. It is laughable that NCAA would not condone the ‘infractions’ by foreign airlines, but approves similar ‘infractions’ by local airlines.
The BASA with the UK has a ‘double disapproval’ clause where parties must totally agree or disagree on any issue; otherwise, the aggrieved party is required to approach an international arbitration panel for resolution. Where in the world do we find a regulatory body fixing the prices of services or products? When MTN and Econet introduced high call rates at the initial stage of their business in Nigeria, market forces through Glo forced them to change their pricing strategy. So let the market forces check the exorbitant fares of BA. The level of personal vendetta against BA is driving embarrassing government decisions and pronouncements.
Policy makers in our aviation industry are painting a worrying picture for local and foreign investors in the sector, and this must stop. It is globally recognised that this sector is a major catalyst to economic development, which we dearly need. I feel sad that in this modern age, there are calls for the re-establishment of another national carrier. The same corruption, free tickets galore, political cronyism, and parochial and myopic business decisions that killed Nigeria Airways will continue with the new carrier. Knowing the level of corruption in Nigeria today, the airline is a dead duck, as there is no any government-owned commercially driven enterprise running efficiently and profitably today.
Unfortunately, Arik Air which should be in a position to take advantage of the vast opportunities in the market is unable to see beyond its nose. The airline hasn’t displayed any idea, model or innovation to tap into this huge market. For instance, its economy seats have the best leg room in this market, but there has been no marketing strategy on its part to leverage on this advantage. Arik has hired many competent foreign experts with credible experience to turn the airline into a world class success, but often, they get fired or quit for whatever reason.
Nigeria’s aviation like the nation is at a crossroads and we need a serious surgical operation to get it back to life. May God help Nigeria!
•Tumba  is the CEO of SY& T Communications Ltd, a PR firm.

Source- Thisday

#Nigeria No plan to prosecute oil thieves now – FG

May 4, 2012 by Ihuoma Chiedozie, Abuja
Attorney-General of the Federation and Minister of Justice, Mohammed Bello Adoke (SAN)

Against the expectations of Nigerians, the Federal Government on Thursday said it was not ready to prosecute individuals and firms indicted in the N1.7tn oil subsidy scam.

The Attorney-General of the Federation and Minister of Justice, Mohammed Bello Adoke (SAN), who spoke government’s mind in a statement, said it would be guided by the dictates of due process and the rule of law in its handling of the report of the House of Representatives AdHoc Committee on Fuel Subsidy Regime.

Apparently responding to widespread calls, particularly from civil society, for government to take an immediate decisive action on the report, the AGF said the probe was “mainly fact-finding.” He stressed that the Federal Government would conduct thorough investigations in the matter before commencing prosecution.

He hinted that a forensic audit of the accounts of the Nigerian National Petroleum Corporation, directed by President Goodluck Jonathan in 2010, was part of the ongoing investigations that would result in the possible prosecution.

He re-echoed Jonathan’s declaration that the Federal Government was determined to prosecute all those indicted in the report, no matter how highly placed.

However, the AGF noted that the report as well as the resolutions of members of the House on the document were yet to be transmitted to the executive.

He said when received, the report and the resolutions would be passed to the anti-graft agencies for perusal. He stated that the anti-graft agencies would then be expected to assemble ingredients required to raise criminal charges that might be filed against the indicted persons.

The statement reads in part, “The attention of the office of the Attorney-General of the Federation and Minister of Justice has been drawn to recent calls by some groups and well-meaning Nigerians for the prosecution of those allegedly indicted in the Report of the House of Representatives AdHoc Committee on Fuel Subsidy Regime.

“It is pertinent to reiterate government’s position as aptly captured by Mr. President’s initial reaction to the report of the fuel subsidy probe to the effect that any person found wanting will be prosecuted, irrespective of the person’s standing in the society.

“Nigerians must, however, appreciate that in discharging this onerous responsibility, government must be guided by the dictates of the rule of law and due process as required of any democratically elected and responsible government.

“In this regard, the need to ensure that thorough investigations are carried out by relevant law enforcement agencies cannot be overemphasised.

“This is more so, as the exercise carried out by the House of Representatives is mainly fact-finding.

“I also wish to point out that the report of the ad hoc committee and the resolutions adopted by the House of Representatives have yet to be transmitted to the executive arm of government.”

Adoke cautioned against stampeding the anti-graft agencies into embarking on a hasty prosecution.

“Experience has shown that whenever our law enforcement agencies are stampeded to arraign suspects, the end result is usually the discharge of such suspects by the courts ostensibly for want of evidence.

“Nigerians must, therefore, allow our law enforcement agencies to conduct painstaking investigations that will ultimately satisfy the standard of proof required in criminal cases,” he said.

He drew attention to a forensic audit of the accounts of the NNPC, directed by Jonathan in 2010, and urged Nigerians to wait patiently for the outcome of the investigations and subsequent prosecutions that may arise from the subsidy probe conducted by the House, as well as a similar probe by the Senate.

He said, “I, therefore, humbly urge Nigerians to have faith in the processes being undertaken and to patiently wait for the outcome of the investigations and subsequent prosecutions that may flow from the fuel subsidy probe conducted by the House of Representatives and the ongoing probe by the Senate of the Federal Republic of Nigeria.”

On the threat by the Save Nigeria Group to mobilise Nigerians for a protest if action is not taken on the report after the expiration of a two-week ultimatum, Adoke said, “In this respect, I wish to observe that the ultimatum being given by some groups and the threat to embark on demonstrations and strike actions will only compound the problem and divert attention, as well as, the energy that would otherwise have been channelled into productive use by law enforcement agencies.”

Source – The Punch

#Nigeria Police arrest two Boko Haram suspects in Ebonyi

The Ebonyi State Police Command on Thursday confirmed the arrest of two persons suspected to be members of Boko Haram at the Ochoudo motor park in Abakaliki.

The Public Relations Officer of the command, Mr. John Eluu, told the News Agency of Nigeria that investigations into the matter were ongoing.

“We can confirm that two suspects have been arrested for being members of the Boko Harm sect, as the matter will be investigated thoroughly,” he said.

The men were arrested late on Wednesday at the park while boarding a vehicle to Ikwo Local Government Area of the state and were taken to the Central Police Station, Abakaliki, where they were interrogated.

The police said the suspects claimed to be Sokoto indigenes but the identity card found on one of them revealed he was from Zamfara.

Items found on the arrested men, according to NAN reports comprised two dane guns, machetes, an axe, gun powder, and identity cards, among others.

Alhaji Farouk Garba, a northerner residing in Abakaliki, said the activities of the dreaded sect in the northern part of the country had made people from the area objects of suspicion.

“Most residents of the town see northerners who dress in our traditional regalia as members of the sect and raise false alarm most times.

“I want the arrest of the suspects to be thoroughly investigated to uncover their real identity while appealing to the people of the state, especially Christians, to note that not all Hausas and Muslims are members of the sect.

“I also call on the Federal Government to immediately check the terrorist activities of the sect while the security agencies should be more proactive in protecting the lives and properties of the citizens,” he said

Source- The Punch

#Nigeria PHCN workers on strike over ‘unpaid salaries’

May 4, 2012 by Stanley Opara
Minister of Power, Prof. Bart NnajiMinister of Power, Prof. Bart Nnaji
| credits: File copy

Workers of the Power Holding Company of Nigeria in Lagos State commenced another round of strike on Thursday due to the non-payment of four months’ salaries to those who were not cleared after the recent biometric verification exercise.

Our correspondent learnt from some of the workers that the result of the biometric exercise conducted by the Ministry of Power for PHCN members of staff categorised some of them as ‘ghost’ workers, a situation that led to the stoppage of their salaries since February.

Some of the workers, who spoke to our correspondent at the Ikeja Electricity Distribution Company, said the ministry had promised to pay them the outstanding salaries, but had consistently defaulted.

The General Secretary, National Union of Electricity Employees, Mr. Joe Ajaero, who spoke to our correspondent on the telephone, said the aggrieved workers, whose names were omitted from the result of the biometric verification exercise, had not been paid since February.

He said Lagos had the highest number of those affected, hence the commencement of the strike in the state.

Ajaero said, “The chief executive officers of the PHCN firms once said they had been asked to pay the affected workers. But when asked recently, they said they were asked to stop the payment.

“We are currently meeting in Abuja. The issue was raised and we are working towards resolving it.”

The Chairman, NUEE, Ikeja Electricity Distribution Company Zone, Mr. Lawal Adewale, also confirmed to our correspondent that affected members had not been paid salaries for four months.

“About 153 workers were affected at Ikeja and Oshodi distribution. The consultant that did the biometric exercise labelled them as ghost workers. I can authoritatively tell you that there is no ghost worker at the Ikeja distribution zone. The strike will definitely continue until we are answered,” he said.

When our correspondent contacted the ministry, a media aide to the minister, Mr. Cdon Adinuba, said some of the workers refused to partake in the biometric verification exercise.

“That was why we appealed to them on several occasions to submit themselves to the exercise. The minister even told them that he had to submit himself to the exercise to get his pay. Despite all these, some refused to do it,” he stated.

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