Opposition Parties Meet on Way Forward
Chief Bisi Akande, ACN National Chairman
By Imam Imam
The leadership of Congress for Progressive Change (CPC) and Action Congress of Nigeria (ACN) Sunday held exploratory talks in Lagos ahead of the all-important presidential election on Saturday, THISDAY can report.
The two parties had entered into an agreement to see how they could work together in order to wrest power from the ruling party, the Peoples Democratic Party (PDP), which has been in government since 1999.
The original plan was for the party that wins more National Assembly seats to produce a joint presidential candidate in an alliance, while the party that comes second would produce the leadership of the National Assembly.
Under the arrangement, ACN is in a position to field Malam Nuhu Ribadu as the candidate of the alliance since it has won more seats than CPC which was initially thought to be very strong in the North.
It is yet unclear how the agreement will now work out with the turn of events.
As at Sunday night, ACN had won 13 senatorial seats of while CPC could only boast six in the official results declared so far.
Insiders are of the opinion that an alliance had become inevitable no matter the obstacles because there was no way PDP would not steamroll the other parties in the election without an united opposition.
THISDAY learnt that the talks will continue Monday.
Mark, Gwarzo: Fourth Time Lucky
11 Apr 2011
Senate President, David Mark
By Kunle Akogun in Abuja and Ibrahim Shuaibu in Kano
Senate President David Mark was Sunday declared winner of his Benue South senatorial district election, making history as one of the two senators in the current dispensation to have won their seats for the fourth consecutive term.
The other ranking senator that also made history is Bello Hayatu Gwarzo. He was also declared winner of his Kano North Senatorial district poll with a score of 204,905.
However, two other third-term colleagues of theirs who sought re-election into the Senate for the fourth term - Gbenga Ogunniya of Ondo South and Nuhu Aliyu of Niger Central - failed to realise their ambitions as they lost Saturday's senatorial poll in their respective areas.
Mark, who polled 147,923 votes from the nine local government areas that make up the Benue South Senatorial district, defeated his closest rival, Maj-Gen. Lawrence Onoja (rtd.) of the Action Congress of Nigeria (ACN), who polled 79,433 votes.
Announcing the result at the Oturkpo Local Government secretariat collation centre for the senatorial district Sunday, the Returning Officer for the area, Prof. Moses Adeyemi, expressed satisfaction at the orderly conduct of the polling officials and political party agents throughout the voting and collation period.
Of the 609,315 registered voters in the senatorial district, 254,106 turned up to cast their votes. A total of 237,862 votes were valid, while 16,953 ballots were rejected due to wrong thumb-printing.
Mark, who marked his 63rd birthday on Friday with a private golf tournament at the Oturkpo Golf Club, had told newsmen at the end of the tournament that he wished he could win the senatorial election to serve as a great birthday gift to him by the Idoma people that make up the Benue South Senatorial district.
Reacting to his victory, Mark thanked the people of the senatorial district for renewing his mandate for another four years, saying “this is an additional responsibility and I am going back as a ranking senator and they expect me to give the best in terms of legislation.”
He appealed to his opponents to join hands with him for the benefit of the people.
“We need all hands on deck to make sure we bring development to our people”, Mark told his opponents at the election, adding, “The winners and the losers all have to work together. I will send olive branch to them and tell them to accept it in good faith and to join me to work for the benefit of our people.”
He said if he had lost the contest, “by now I would have congratulated the winner”.
However, in his reaction to the outcome of the election, the ACN senatorial candidate, Onoja, said he would contest the result in court.
Expressing disappointment at the outcome, Onoja, who spoke in a telephone chat, declared that he was rigged out.
The Biggest Gainer So Far is ACN
11 Apr 2011
Senator Bola Tinubu, ACN Leader
By Tunde Rahman
The opposition Action Congress of Nigeria (ACN) seems to be waxing stronger by the day. But will the party continue to leverage on what it has to build new frontiers? From the results declared so far, the ACN has emerged the biggest gainer. The results have shown the party to have established its firm grip on the South-west, its main stronghold, with analysts suggesting it is only a question of time for it to record some strides in some parts of the North and South-east.
To be sure, what has happened so far has proved the bookmakers right. Analysts had always ceded the South-west to the ACN, predicting also that the party would do well in the neighbouring Kwara and Edo States. The party holds the governorship in Lagos, Edo, Osun and Ekiti, though the latter two states were eventually won in court. So, analysts had predicted that the party would not only do well in those states but also extend its tentacles to other states given its acceptability in the entire zone, the deft politics of its main gladiators and the fact that ACN lays claim to being an offshoot of the First Republic Action Group (AG) and Second Republic Unity Party of Nigeria (UPN).
In its projections for the senatorial race for instance, of the 18 seats in the South-west, THISDAY gave nine to ACN outright, only one (Oyo North) to the Peoples Democratic Party (PDP), while the remaining eight districts were too close to call. By the results of Saturday’s poll already declared, ACN has already surpassed those projections. It cleared 11 of the 12 senatorial seats in Lagos, Osun, Ogun, Oyo, losing one in Oyo. The party has also taken two of the three seats in Edo. Meanwhile, the election into the three seats in Ekiti has been postponed to April 26.
However, ACN failed to record a good showing in Ondo where the Labour Party (LP), which controls the governorship, cleared the three seats. The same story also holds sway in Kwara where PDP cleared the three senatorial seats.
Now, ACN’s strong showings in the South-west, its grip of the zone, is largely attributable to the party’s seeming strategy largely powered by its leader, Asiwaju Bola Ahmed Tinubu. That strategy, which is a variant of that of the old AG and UPN, is thus: hold on firmly to your base and aim at the minorities and the disgruntled in the South-east and North. With this, the party’s rank had been swelling, having in its net political forces like Dr. Chris Ngige, Chief Achike Udenwa, Senator Ifeanyi Ararume and Senator James Akpanudoedehe among others from the South-east and South-south as well as Senator Saminu Turaki, Maj. General Lawrence Unoja and others from the North. Though, the party’s incursion into the Middle-Belt particularly Benue, Jigawa in the North, and South-east especially Anambra and Imo States is yet to yield bountiful electoral dividends, perhaps this is just a question of time.
BPE: Evaluation of Investors’ Proposals Begins Monday
11 Apr 2011
Vice-President, Namadi Sambo
By Ejiofor Alike
Bureau of Public Enterprises (BPE) will Monday begin the evaluation of 331 Expressions of Interest (EOIs) received from potential investors that indicated willingness to acquire the power generating companies (Gencos) and distribution companies (Discos), slated for privatisation, under the ongoing power reform. A tentative workplan obtained by THISDAY from the privatisation agency indicates that the evaluation of the 331 EOIs, which BPE “harvested” on March 4, 2011, from the advertisement it placed on December 18, 2010, will take place from April 11 to 15, 2011.
According to the time table, the approval of the evaluation report for the Discos is scheduled for April 22, while the issuance of bidding documents comes up on April 29. The agency will open the data room for the distribution companies on May 2 and also conduct investors’ due diligence from May 2 to July 4, 2011.
The workplan also shows that the potential investors will submit their technical/business plan on July 5, while the evaluation of the plan will be carried out from July 7 to 14. BPE will approve the final shortlist of bidders for the Discos on July 21, according to the preliminary workplan. The agency will also open the aggregate technical commercial and collection loss reduction proposal on July 29 and approve preferred and reserved bidders on August 5.
NAICOM to Compensate Victims of Suleja Bombings
11 Apr 2011
Police IG, Hafiz Ringim
By Nnamdi Duru
National Insurance Commission (NAICOM) has commiserated with relatives of victims of the bombing of the Suleja office of the Independent National Electoral Commission (INEC), one of the events that nearly marred last Saturday’s National Assembly elections.
The regulatory body for insurance business in Nigerian also assured families of the deceased and injured victims in the blast and those involved in a similar bomb blast in Maiduguri, Borno State of adequate compensation by the insurance companies covering the electoral body’s risk.
NAICOM also confirmed that the electoral body had put in place an adequate insurance protection for all its ad-hoc workers, including those who lost their lives in the bomb blast.
The commission’s Assistant Director in charge of Corporate Affairs, Mr. Lucky Fiakpa, confirmed this in a statement made available to THISDAY in Lagos Sunday.
He sympathised with the families of victims of the blasts assuring them of adequate compensation from the insurances put in place by the electoral body for this purpose.
“The National Insurance Commission (NAICOM) expresses deep sympathy to the families of those patriotic Nigerians that lost their lives in Suleja, Niger State and Maiduguri, Borno State during last Saturday National Assembly elections and to wish quick recovery for the injured.
“The Commission is however pleased that adequate insurance cover is provided by the Independent National Electoral Commission (INEC) for its entire ad-hoc staff taking part in the on-going electoral process,” Fiakpa stated.
“The National Insurance Commission will collaborate with INEC to ensure that adequate claims are paid promptly to beneficiaries of those who lost their lives as well as those wounded in the bomb blast,” he assured.
It was reported that no fewer than 21 people mostly National Youth Service Corps (NYSC) members and INEC officials were feared killed last Saturday in two separate bomb explosions that rocked the commission's office in Suleja, Niger State and part of Kaduna State.
Before the latest bomb blast, at least10 people were reportedly killed and several others injured on March 4, this year when an explosive device went off at a zonal rally of Niger State Governor Babangida Aliyu of the Peoples Democratic Party (PDP) in Suleja.
The Suleja incident was said to have happened as said to have occurred by 6.00pm when the victims covered at the INEC office to check their names on the commission’s list of postings ahead of the elections.
Also another bomb blast occurred at a polling station in Maiduguri, capital of northern Borno state Saturday, another rocked a polling center in Unguwar Doki near Monday Market in Maiduguri, Borno State taking the lives of 6 electoral officers last Saturday.
A suspected bomber was said to have died in the explosion which occurred as accreditation of voters was underway, led to a fire at the abandoned nearby Maiduguri International Hotel. An unspecified number of people were injured in the blast and rushed to the hospital.
Fuel Imports: NNPC Absolves Petroleum Minister of Wrong Doing
11 Apr 2011
Diezani Alison-Madueke, Minister of Petroleum Resources
By Chika Amanze-Nwachuku
The Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation, Dr. Levi Ajuonuma has refuted reports of underhand dealings against the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke in the allocation of import licence for Premium Motor Spirits (PMS) for the second quarter of 2011.
A statement Sunday night by Ajuonuma described as false, a report in a national newspaper (Not THISDAY), which link the Minister with impropriety in the award of import licences to oil marketers for the import of petroleum products into the country. Ajuonuma said the report alleged inter-alia “that prospecting marketers pay a kick back of $8 for every metric tonne of product imported into the country to the General Manager, Operations of the Petroleum Products Pricing Regulatory Agency who it alleged is a proxy of the Minister”.
Dismissing the report as the handiwork of enemies, the GGM said due process was followed in the award of the import contract. ``While we recognise the importance of the watch dog role of the media, we frown at the open use of falsehood and distortion of facts to achieve sensational headlines. Due process and transparency was followed in the award of the said import licence after a comprehensive bidding process involving all interested marketers in line with the PPPRA template,’’ Ajuonuma said .
He declared that the allegation is not only a figment of theimagination of the writer but a dangerous distortion of facts calculated to blight the Minister’s successful drive in ensuring complete sanitization of the downstream sector of the petroleum industry.
The NNPC spokesman pointed out that in the last 12 months the Petroleum Ministry under the watch of Alison-Madueke has confined the hydra headed problem of fuel scarcity into the history books as the country now enjoys sustained stability in the supply and distribution of petroleum products across the country.
He added that under Mrs. Alison-Madueke the Petroleum Ministry has also recorded great strides in the areas of transformation of the NNPC, the passage and aggressive implementation of the provisions of the Nigerian Content Act, push for the quick passage of the Petroleum Industry Bill, implementation of the Gas Master Plan as well as achievement in improved relationship with critical stakeholders across the oil and gas value chain. The Minister, he said deserves applause rather than condemnation in her determination to engender a comprehensive reform of the oil and gas industry.
FG Set to Review Policy of Second Hand Cars, Importation
11 Apr 2011
Senator Jubril Martins-Kuye, Commerce and Industry Minister
By Christopher Isiguzo in Enugu
Federal Government has stated that plans are underway to review the policy removing certain products, including cars older than 10 years, from the import prohibition list in order to encourage indigenous manufacturers, provided a strong argument to that effect is canvassed by the Manufacturers Association of Nigeria (MAN).
THISDAY checks revealed that some of the products recently removed from the import prohibition list include toothpicks, furniture and fabrics.
Speaking during a tour of industries and manufacturing companies in the South East zone including Innoson companies, Hadis and Dromedas, Chief Economic Adviser to the President, Prof. Kassey Garba, said the policy may be reversed to promote made-in-Nigeria goods, which are not inferior to imported ones. She stated that the President believes in power of change and could review the policy in the light of new argument.
According to her, the federal government has already started looking at the tariffs in a bid to encourage the local manufacturers. “Any area that is not progressive for our people, the President is ready to review it. We have seen something quite encouraging in this tour, which is a strong foundation to build our industrial base.
“We have seen strong entrepreneurs here who are ready to build our industrial base, but they have some challenges like power,” she acknowledged.
But the federal government believes in the need for collaboration between the federal and state government to address these challenges.
“We have interacted with the private sector in the South-East and from here we will go to the North and other parts of the country. This country is bigger than what people think. Here, we make some goods and brand them made-in-China for people to buy.
“I worked in the United States of America and I think the goods we have here are not inferior. If we accept the ones made abroad, we should accept ours,” she noted.
Credible Polls: I’ve Delivered on My Promise, Says Jonathan
11 Apr 2011
President Goodluck Jonathan
By Constance Ikokwu, Ahamefula Ogbu, Onyebuchi Ezigbo in Abuja
President Goodluck Jonathan Sunday said he had delivered on his promise of free and fair polls in the ongoing elections and assured Nigerians of what he called perfect election results in 2015.
Jonathan said this at the Gwagwalada General Hospital, Federal Capital Territory (FCT), Abuja, where he went to visit victims of last Saturday’s bomb blast at the Suleja office of the Independent National Electoral Commission (INEC).
He said the country had made reasonable progress in conducting elections that the people had adjudged as free and fair.
Jonathan while commiserating with the survivors of the bomb blast assured them that the Federal Government would offset the bills incurred by the injured while it would compensate families of the deceased.
According to him, those who sacrifice their lives to serve their country would always be rewarded no matter their circumstances.
Accompanied by the Minister of Defence, Adetokunbo Kayode (SAN), Jonathan was received by the Chief Medical Director of the hospital, Dr. Peter Alabi, and offered his condolence to the victims of the blast. He assured them that the nation was behind them in their travails.
“For the injured, the government will take care of all their medical bills and by the time they are okay; we would look at their conditions, the ones that are having pressure to take care of themselves. With what I have seen, government will definitely assist,” Jonathan said.
The president conceded that there were grey areas in the National Assembly polls, but observed that there would be improvement as the days go by so that by 2015, “we would have perfected the art of conducting free and fair elections in the country”.
“As regards the elections, we all are happy that despite some setbacks that were witnessed generally, Nigerians are happy that at least, they can decide who will represent them at the National Assembly or who will govern them in the presidential, governorship and state house of assembly elections that are still ahead. That has given us hope. And of course we have even improved.
“I believe that by 2015 when elections are conducted in this country, some of the hiccups we witnessed on Saturday would have fizzled out. I also believe that any subsequent election like the one coming up this Saturday and upper Saturday will definitely improve on this. So for that, I'm quite happy,” he said.
Commenting further, Jonathan said: “But having inspected the hospital wards, and I have seen young people who are serving their nation just caught up in these dastardly acts by some anti-social elements, I feel sad. These are young people in the prime of their lives. The hope and future of Nigeria, anybody targeting the youth are targeting the country. They don't mean well for the nation.”
He however noted that every society has such deviants and promised that his administration would ensure that the perpetrators were fished out and brought to book.
In a renewed display of faith in Nigeria, the United States of America has commended Nigerians and INEC for last Saturday’s National Assembly elections, saying “it got off to a good start”.
The US Assistant Secretary of State for Africa, State Department, Ambassador Johnie Carson, told journalists in Abuja Sunday, that the INEC Chairman, Prof. Attahiru Jega, and the National Youth Service Corps (NYSC) whose services were employed during the exercise had done well. Carson monitored the election in Nasarawa, Kaduna and Abuja.
Although there were hitches in some states, sporadic cases of violence and failures which was technical nature, indications are that the elections were considerably fair, he stated.
“It is off to a good start. We have to acknowledge the good work of Jega and the work of Nigerian youth corps members. Nigeria should be extraordinarily proud of these young men and women who managed this process in a fair way,” he declared.
He said INEC had more work to do, given that the presidential and governorship polls were yet to take place.
“Moving forward, the intensity of these elections will rise. What one wants to see is an improvement….but this is a good start baseline.
“It’s a good process that allowed people to vote losers and winners. This represents an advance of the 2007 elections. The credibility of these elections is better and what is more important is that Nigerians accept that,” he said.
Meanwhile, the Speaker of the House of Representatives, Hon. Dimeji Bankole, has described the outcome of the election as the reflection of the wishes of the people in “our national quest to enshrine an enduring democracy in our nation”.
According to him, “their action after the initial hiccups demonstrates an abiding faith in democracy as an acceptable and veritable path for the development of our nation. I congratulate all the winners in the parliamentary election for their victory.” He noted that losers should take their losses in good faith as in any such exercise, there must be winners and losers.
He added that, “for me, the race was not a life and death duel. Of more importance is building, maintaining and developing our democratic institution and processes as a means towards true national development and greatness.”
In a related development, former governor of Osun State and candidate of the Peoples Democratic Party (PDP) in Osun Central Senatorial district in last Saturday’s election, Olagunsoye Oyinlola, has congratulated the winner, Prof. Sola Adeyeye of the Action Congress of Nigeria (ACN).
Oyinlola in a congratulatory letter said: “Last Saturday’s Senatorial elections results have shown that for me, the battle has been well fought and lost. I give all the glory to God for seeing us this far. I have made it clear to the winner that his election was the wish of the people which I respect. I also urged him to use the mandate of the people for the upliftment of the people of Osun Central whose voice he would be in the Senate in the next four years. May God Almighty help him to carry the load.”
Also, Project 2011 Swift Count, a joint initiative of the Nigerian Bar Association (NBA), Transition Monitoring Group (TMG), Federation of Muslim Women Association of Nigeria (FOMWAN) and Justice Development and Peace/Caritas Nigeria (JPDC), has scored last Saturday’s elections 96 per cent in credibility index.
The organisation, which presented its interim report to newsmen in Abuja yesterday, said it would deploy 8,000 election observers in the country to monitor next Saturday’s presidential poll.
While commending INEC for rising up to the occasion by improving on its previous outings in various election processes, the body said the commission needed to do more to improve on its performance in the next stages of the general election.
Prophets without Honour in Their Homestead
11 Apr 2011
Vice President Namadi Sambo
By Jaiyeola Andrews
The National Assembly elections, which were held last Saturday after two postponements, have recorded big upsets, especially among politicians that had high pre-election ratings.
The result of the elections no doubt opened a new vista in comparison to previous exercises in the country in the past 12 years that saw the Peoples Democratic Party (PDP) holding sway at the polls. The party, given the result of the last weekend’s elections declared yesterday across the country, failed to record a landslide victory as it had done in the past.
The elections, which were free and fair going by the reports in various parts of the country, saw the Chairman of the PDP Board of Trustees (BoT), former President Olusegun Obasanjo losing in his constituency in Ogun Central where his daughter, Senator Iyabo Obasanjo-Bello, also lost her senatorial seat to the candidate of the Action Congress of Nigeria (ACN), Mr. Gbenga Obadara.
In Abeokuta South Federal constituency, the Speaker of the House of Representatives, Hon. Dimeji Bankole of the PDP, also lost his seat to the ACN candidate, Mr. Segun Williams.
In Bauchi Federal constituency, Governor Isa Yuguda of Bauchi State lost his constituency to the candidate of Congress for Progressive Change (CPC), Aliyu Ibrahim Gebi, who won the House of Representatives election.
In Oyo State, former governor and governorship candidate of Accord party, Senator Rashidi Ladoja, equally lost in his Ibadan North ward 10 to ACN.
Despite relocating to his Camp Road Ward in Kaduna for the elections, Vice-President Namadi Sambo lost the ward to the CPC in both senatorial and House of Representatives elections.
Also in Borno State, Governor Ali Modu Sheriff of the All Nigeria Peoples Party (ANPP) lost in his Bornu Central senatorial district to PDP.
The ANPP presidential candidate and Governor of Kano State, Mallam Ibrahim Shekarau, was defeated in his Government House polling centre (protocol) by the CPC. He also lost in his Giginyu Ward to the same party.
In Niger State, Governor Muazu Babangida Aliyu was roundly defeated at his Chachanga Federal constituency by the CPC which has its candidate in Ibrahim Musa.
Unlike the trend in previous elections where the PDP would have claimed almost 100 per cent of the election victory, the table has eventually turned in the 2011 National Assembly elections, an indication that the average Nigerian electorate is desirous of change and willing to express that at the polls.
How PDP Bled to Death in the South-west
11 Apr 2011
Chief Olusegun Obasanjo, PDP BoT Chairman
By Omololu Ogunmade
With the Action Congress of Nigeria (ACN) sweeping the National Assembly polls in the South-west at the weekend, an end may have come to the eight-year sojourn of the Peoples Democratic Party (PDP) in the zone. Upon the conclusion of the 1999 general election, PDP only won a senatorial seat in Ekiti South, when Senator Gbenga Aluko defeated Prince Dayo Adeyeye, the then National Publicity Secretary of Afenifere. Even former President Olusegun Obasanjo lost in his ward in 1999 as the Alliance for Democracy (AD) cleared the elections in the zone.
But PDP’s inroad into the South-west began in 2003 when the then ruling AD in the region entered into a pact with PDP with the intention to support Obasanjo’s second term bid.
Consequently, AD leaders and its governors then in solidarity with Obasanjo, their kinsman, agreed not to field a presidential candidate at the 2003 general election with instructions to their followers to vote only for Obasanjo at the presidential poll and vote for AD candidates in other elections.
While the AD leaders were sincere in their pact with Obasanjo, the former president had a shocker for them. His plan was to exploit the opportunity of the pact to outwit them and displace the AD at the polls. His plan sailed through as PDP was declared winner of elections in five of the six states of the zone, leaving only Lagos for AD. The state governor then was Senator Bola Ahmed Tinubu.
Since the PDP displaced AD in 2003, it has continued to wield a big influence as it repeated the same feat in 2007 when the party was declared winner of governorship elections as well as National Assembly elections in Ondo, Ogun, Oyo and Ekiti States. It took judicial intervention for Labour Party (LP) and ACN to reclaim Ondo, Ekiti and Osun States respectively from PDP.
However, last weekend’s election results appeared to have broken the seeming invincibility of the PDP in the South-west as the free and fair polls championed by Attahiru Jega-led Independent National Electoral Commission (INEC) witnessed ACN clearing a majority of the seats in Lagos, Osun, Oyo and Ogun, while the ruling LP in Ondo also cleared all the elections, thus fuelling beliefs that PDP never won any election in the zone through any free and fair play but rather through rigging and widespread electoral malpractices and the deployment of federal might.
The results so far released showed the defeat of bigwigs such as the Speaker of the House of Representatives, Mr. Dimeji Bankole, Chairman, Senate Committee on Health, Senator Iyabo Obasanjo-Bello, in Abeokuta federal constituency and Ogun Central senatorial district respectively, by candidates of ACN just as Senators Bode Olajumoke, Gbenga Ogunniya and former governor Segun Agagu also bit the dust in North, Central and South senatorial districts of Ondo State respectively. It was the same story in Osun where Hon. Babajide Omoworare crushed Chairman, Senate Committee on Appropriation, Senator Iyiola Omisore in Osun East; Professor Sola Adeyeye defeated former Governor Olagunsoye Oyinlola in Osun Central and Mudashiru Hussain secured victory over Isiaka Adeleke in Osun East senatorial district.
Also in Oyo South, Kamorudeen Adedibu was defeated by ACN candidate, Femi Lanlehin, just as Ayo Adeseun also sealed the fate of Jumoke Akinjide who sought to represent Oyo Central in the Senate.
Nevertheless, a number of factors have largely been responsible for this wide range of victories for ACN, but prominent among them was the intra-party squabble which tore the PDP apart in each of the three states of Oyo, Osun and Ogun. In Osun for instance, attempts to impose Omisore on the party as the governorship candidate of PDP prior to the judicial victory of Rauf Aregbesola over Oyinlola had polarised the party into different factions, while the centre could not hold. It was the same trend in Ogun, where Jubril Martin Kuye’s faction to which Obasanjo also belongs, fought Governor Gbenga Daniel to a standstill.
The aftermath was the emergence of two governorship candidates of the party last year and the eventual defection of Daniel’s faction to the Peoples Party of Nigeria (PPN). It was the same story in Oyo where a group of Ibadan elders comprising former Minister of Power and Steel, Elder Wole Oyelese, Yekini Adeojo and Rashidi Ladoja constituted a faction that was bent on stopping Governor Adebayo Alao-Akala from securing re-election. This battle led to the exit of Ladoja to run on the platform of Accord Party (AP) along with his supporters, while till date, Oyelese and his counterparts are still contesting the candidature of the governor in court. These internal crises no doubt have adverse effect on the PDP in the South-west. It is only the Ekiti State chapter of PDP that has not been caught in the web of internal wrangling which have brought the party to its knees in other states of the zone.
One critical issue derivable from this wave of victory by ACN in the zone, as many have argued, is that this loss of the PDP in the zone, shows that this is the beginning of the end of PDP in South-west as all hands are on deck to see how the party will fair in Ekiti where its National Assembly election did not hold at the weekend as a result of its shift to April 26. The presidential poll this Saturday in Ekiti will however set the final tone for the status of PDP in the state.
Ume-Ezeoke: ANPP’ll Lose Presidential Poll
11 Apr 2011
Hon. Edwin Ume-Ezeoke, Former Speaker of the House of Representatives
By Jaiyeola Andrews
Former Speaker of the House of Representatives and immediate past National Chairman of All Nigeria Peoples Party (ANPP), Hon. Edwin Ume-Ezeoke, has predicted failure for ANPP at the presidential poll.
In his first major reaction after his Party’s Presidential Primary that produced Mallam Ibrahim Shekarau, Ume-Ezeoke predicted that his party would be humiliated at the presidential election.
In a statement made available to THISDAY after briefing journalists in his Asokoro country home months after he retired from active politics, the elder statesman called on ANPP to convene emergency National Executive Council (NEC) meeting to discuss what he described as “ridiculous” presidential campaign by the party's flag bearer.
“I must honesty admit that all is not well with our great party the ANPP. The way our election campaigns are moving through out Nigeria particularly for the presidential election makes me feel that it is practically impossible for our party, the ANPP, to achieve any victory in the coming election.” Ume- Ezeoke averred.
According to him, the party is enmeshed in internal indiscipline, intractable intra-party conflicts, and lack of logistics.
Polls: Opposition Seeks Cancellation of Results in Kwara, Bayelsa, Rivers
11 Apr 2011
Governor Timpre Sylva of Bayelsa State
By Muhammed Bello in Port Harcourt, Segun James in Yenagoa and Hammeed Shittu in Ilorin
Opposition parties in Bayelsa state have accused the ruling Peoples Democratic Party (PDP) of hijacking electoral materials for last Saturday’s election in connivance with security operatives including the police, the Joint Military Task Force (JTF) and some Independent National Electoral Commission (INEC) officials.
They have also called for the immediate removal of the State Resident Electoral Commissioner, Edwin Nwatalari, over alleged irregularities recorded during the conduct of the National Assembly election.
The parties led by the Labour Party (LP) Chairman, Addo Badou, and the Action Congress of Nigeria (ACN) stormed the INEC secretariat, submitting that election did not hold in six local government areas of the state, even as the result released by INEC which saw the emergence of PDP as winner in Kolokuma/ Opokuma/ Yenagoa Federal constituency was allegedly characterised with irregularities.
In Ilorin, Kwara State Action Congress of Nigeria (ACN) Sunday threatened to contest the results of the National Assembly elections released by Independent National Electoral Commission (INEC) in tribunal while the victorious People’s Democratic Party thanked all supporters.
But reacting to the allegations made against top government officials, Bayelsa State Commissioner of Information, Hon. Nath Egba described the allegations as unfortunate and unfounded.
Reacting, the Director General of the Amaechi Campaign Organisation, Ezebunwo Nyesom Wike, urged the party to throw in the towel and accept defeat.
Nwike told journalists in Port Harcourt Sunday that the results showing PDP in the lead in the state is an indication that it is the only party with grassroots appeal.
Delta: Two Attempted Ballot Box Hijackers Mobbed
11 Apr 2011
Governor Emmanuel Uduaghan of Delta State
By Hammed Shittu in Ilorin and Julius Omon-Onabu in Warri
Delta State Police Command has confirmed two deaths during Saturday’s National Assembly election in the state.
The command’s spokesman, Mr. Charles Muka, an assistant superintendent of police (ASP), told THISDAY Sunday that the police could confirm the death of two persons in Ndokwa West Local Government Area during reported clashes between supporters of two rival parties in the area.
Muka however said police did not receive any reports of other deaths said to have occurred in Orogun and Oleh in Ughelli South and Isoko South, respectively.
Angry youths reportedly burnt a vehicle at Orogun allegedly used by hoodlums to make away with snatched electoral materials belonging to the Independent National Electoral Commission (INEC) with one of the suspected thieves reportedly lynched by the mob.
However, the police spokesman said security reports across the state showed that the exercise was peaceful and recorded an unprecedented low incidence of violence.
Meanwhile, Kwara State police boss, Mr. Tsafe Mamman Sunday said, about 23 suspected political thugs were arrested by the men of the state police command during the just concluded national assembly poll in the state.
Addressing newsmen in llorin Sunday during the over view of the just concluded national assembly poll in the state, Mamman said, the suspected thugs were arrested from different points during the poll and were said to have come from Lagos.
He said that, the police command has commenced full investigation into their arrest and as soon as the investigation is completed , they will be arraigned in the court of law.
Bomb Blast: Foundation Seeks NYSC DG’s Resignation
11 Apr 2011
Major General Ismaila Tsiga, DG, NYSC
By Ernest Chinwo in Calabar and Mohammed Aminu in Sokoto
Foundation for Ethnic Harmony in Nigeria (FEHN), the organisation in charge of the non-violence transformational training of ex-militants in the Niger Delta, has called for the resignation of the Director General (DG) of the National Youth Service Corps (NYSC), Major General Ismaila Tsiga, over his statements denying the death of any corps member in recent bomb blast at office of the Independent National Electoral Commission (INEC) in Suleja, Niger State.
Addressing journalists in Calabar Sunday, the Chairman of FEHN, Mr. Allen Onyema said from media reports it was obvious that some corps members lost their lives in the blast.
According to Allen, “even the President, Dr. Goodluck Jonathan admitted that some corps members lost their lives but it was shocking and embarrassing that Tsiga should deny on air with scorn in a network news the death of any corps member in the blast.
“While making that statement on air Nigerians expected that Tsiga would be sober and say the true position rather he was talking and rocking his chair as if nothing happened.
The corps members are on a serious national assignment that calls for serious concern and vigilance by the DG, Federal Government and Nigerians at large.
“This is a shame. Today (Sunday, April 10, 2011) THISDAY page 9 said Miss Victoria Akonde, a serving corps member in Suleja lost her life and the parents lamented her death. So how come the NYSC Director General should tell the nation that no corps member died”.
Meanwhile, the Speaker, Sokoto State House of Assembly, Alhaji Abdullahi Balarabe Salame, has called on Nigerians to seek divine intervention over the recurring bomb blasts in some parts of the country to expose those behind the heinous acts.
Speaking to THISDAY in Sokoto Sunday, Salame noted that the bomb blast that occurred in Niger and Borno States had become worrisome and disturbing in view of the many deaths recorded in the recent incident.
According to him, it has become necessary for Nigerians to choose a credible and competent presidential candidate that will ensure security of lives and properties of the citizens.
He maintained that, it is high time Nigerians wake up from their slumber and vote massively for a leader that will guarantee the security of all and sundry.
The Speaker stressed that there is no use of any government, if it cannot ensure the security of the people.
“The recent bomb blasts that occurred in some parts of the country is a lesson for Nigerians and it will encourage voters to come out enmasse and vote for a presidential candidate that will guarantee the lives of the people”, he stated.
“FEHN is calling for the immediate resignation of the NYSC Director General and an unreserved apology to the family of the diseased. His posture on air was uncalled for and his posture that nobody died is disheartening”, he said.
FEHN which is also in charge of the transformational training of the over 26, 000 ex-militants at the federal government’s Post Amnesty Transformation camp in Obubra, Cross River state called on the federal government to beef up security in the country to avoid a reoccurrence of such an embarrassing development and work hard to bring culprits to book.
“The nation is in a critical democratic process and we cannot afford to fail. Any desperate politician found to be involved no matter how highly placed should dealt with accordingly because this nation is bigger that any individual”, Onyema said.
Senatorial Poll: How INEC, Labour Party’s Negligence May Favour Tinubu
10 Apr 2011
Mrs. Oluremi Tinubu , Lagos AC Central Senatorial Candidate
Negligence on the part of both the Independent National Electoral Commission and the Labour Party may enhance the chances of the former Lagos State first lady and Action Congress of Nigeria candidate for Lagos Central, Mrs. Oluremi Tinubu in the senatorial election, which held Saturday.
Facts available to THISDAY showed that LP, which has Mr. Dapo Durosimi-Etti as its candidate for Lagos Central, was unable to secure INEC’s acknowledgment after submitting his senate form, a situation generally considered an act of negligence.
Even if the election had held penultimate weekend, THISDAY gathered that it still would not have featured the LP because Durosimi-Etti was not duly recognised by INEC and his form did not bear INEC’s stamp of acknowledgment.
THISDAY learnt that when all the political parties that had problems after the botched elections on April 2 met with the INEC leadership in Abuja, LP was unable to defend the case of Durosimi-Etti, making INEC helpless in the circumstance. But the party was said to have put up strong defence in the cases of Ifako-Ijaiye, Somolu and Ikorodu federal constituencies, a development the electoral body has also addressed by suspending elections in those areas.
LP supporters had thronged the polling booths Saturday to cast their votes only to discover that their party was not the ballot paper. This was said to have created bitterness among the voters, who alleged that there was a deliberate attempt to disenfranchise them.
A woman, who called THISDAY and introduced herself as wife of the LP candidate, Mrs. Yemi Durosimi-Etti, complained that supporters of her husband, who she said were more than 80 per cent of the total number of persons that came out to vote, were denied their right to vote because their party of choice was not on the ballot paper.
Mrs. Durosimi-Etti claimed to have called from Victoria Garden City, in Lagos, where she lives with her husband. She said the most annoying part of the whole saga was that when they approached the INEC officials to find out why LP was not on the ballot paper, none of the INEC officials could give any concrete reason.
Fashola Lauds INEC’s Performance
10 Apr 2011
Governor Babatunde Fashola of Lagos state
Governor Babatunde Fashola of Lagos State Saturday commended the Independent Natio-nal Electoral Commis-sion for ensuring a successful National Assembly election.
Fashola gave the commendation after he and his wife, Abimbola, voted at Ward G3, State Grammar School, Surulere.
The governor, who voted about 12.40 pm, told journalists that the exercise at his polling unit was hitch-free.
He said, “We are awaiting feedbacks from other polling units across the state to enable us have the overall picture of events. I liken this exercise to a fresh pilot going on a test flight. Last week, we had an aborted flight, but the crew is ready today, the pilot is ready, the passengers are on board and I think the aircraft had been fitted appropriately. So let us wait for a safe take-off and landing.”
According to the governor, INEC officials arrived at polling centres early enough Saturday to commence accreditation of eligible voters.
“This is in contrast to last week’s exercise when there were complaints of INEC officials getting late to polling centres.
“It aligned with our suggestion last week that INEC should conduct the elections yesterday as against last Monday it planned earlier.”
On the death of some people in Suleja in a bomb blast at the INEC office, Fashola expressed grief, saying it was the most unfortunate thing to happen now. He noted that the conduct of past elections in the nation had been fraught with malpractice but said the current involvement of youth corps members had brought transparency.
“They gave the country a quality voters’ register for the conduct of its elections and thus contributing to nation building.
“The successful conduct of this election is what will ensure that their death was not in vain,” he said.
Suswam Denies Secret Meeting with Security Operatives
By George Okoh
10 Apr 2011
Governor Gabriel Suswan of Benue state
Governor Gabriel Suswam of Benue State has denied reports that he held a secret meeting with security agencies prior to Saturday’s National Assembly election in the state, saying he only held an open discussion with the security chiefs over security in the state.
Addressing newsmen after casting his vote, Suswam said the allegation that he held secret meetings with security agencies in Abuja was not true. He said as the chief executive of a state, he had the responsibility of ensuring the maintenance of law and order in the state and would have no reason to hold any special or secret meetings with any person or group.
Suswam expressed satisfaction with the security arrangement for the elections, saying the rowdiness that had characterised the botched election had been controlled.
“As you can see, the situation is calm with voting going on after accreditation,” he emphasised.
On the postponement of the Benue North-West Senatorial election, the governor said it was unfortunate.
He, however, said the shift to April 26 would not pose any problem, as INEC was equal to the task.
NSE: Brokers Plot Against Demutualisation
11 Apr 2011
NSE Interim Administrator, Emmanuel Ikhazobo
By Goddy Egene
Strong indications emerged last week that stockbrokers of the Nigerian Stock Exchange (NSE) are putting various strategies in place to stop the demutualisation of the Exchange if the process is not done with transparency.
The demutualisation of the Exchange is the process by which a member-owned exchange is transformed into shareholder-owned exchange, thus moving from private to public ownership.
The demutualisation of the Exchange is the process by which a member-owned exchange is transformed into shareholder-owned exchange, thus moving from private to public ownership.
The demutualisation of the NSE is one of the strategies to make the nation’s capital market attractive to investors.
After the appointment of a new Chief Executive Officer for the NSE, the next step is to prepare it for demutualisation.
Specifically, SEC had last week said that its nominated members, including Messrs Ballama Manu(interim president) and Emmanuel Ikazoboh (interim administrator), shall be on the Council pending the election of a new council and are working with existing Council members to achieve the demutualisation among other targets.
After the appointment of a new Chief Executive Officer for the NSE, the next step is to prepare it for demutualisation.
Specifically, SEC had last week said that its nominated members, including Messrs Ballama Manu(interim president) and Emmanuel Ikazoboh (interim administrator), shall be on the Council pending the election of a new council and are working with existing Council members to achieve the demutualisation among other targets.
However, THISDAY checks revealed that suspicious of lack of transparency in the planned demutualisation, the stockbrokers are weighing various options to take with a view to stopping the process.
It was gathered that the brokers, under the aegis of Chartered Institute of Stockbrokers (CIS), which is the professional umbrella body of the brokers and the Association of Stockbroking Houses Owners of Nigeria (ASHON), have resolved to remain united against any attempt to demutualise the Exchange without following due process.
It was gathered that the brokers, who are the original owners of the NSE, are feeling neglected in the demutualisation procedure, hence their resolve to resist the sale of the Exchange without their full involvement.
It was gathered that the brokers, under the aegis of Chartered Institute of Stockbrokers (CIS), which is the professional umbrella body of the brokers and the Association of Stockbroking Houses Owners of Nigeria (ASHON), have resolved to remain united against any attempt to demutualise the Exchange without following due process.
It was gathered that the brokers, who are the original owners of the NSE, are feeling neglected in the demutualisation procedure, hence their resolve to resist the sale of the Exchange without their full involvement.
“The brokers are united against any attempt to demutualise the NSE without due process. SEC has done a very good job by intervening and appointing a new CEO for the Exchange. The commission should equally ensure that the demutualisation process is done in a transparent way so as to attract needed flow of funds into the market,” a broker said.
The National Committee set up by SEC to review capital market in 2008 had recommended that the planned demutualisation of the NSE should be supervised by SEC to ensure fairness and openness.
The National Committee set up by SEC to review capital market in 2008 had recommended that the planned demutualisation of the NSE should be supervised by SEC to ensure fairness and openness.
“The process should reflect the best global governance standards as well as principles that guided the transition of other exchanges from mutual associations to demutualised entities with regard to treatment of surpluses, rights of existing stakeholders, Self Regulated Organisation (SRO) status and responsibility for regulatory powers. The SEC should advise on a 12-month timeframe within which demutualisation of the NSE should be completed,” the Committee headed by Dotun Suleiman had said
CBN to Reform Finance Houses
11 Apr 2011
CBN Governor, Mallam Sanusi Lamido Sanusi
By Obinna Chima
The Central Bank of Nigeria (CBN) has taken bold steps towards reforming the Finance Houses sub-sector of the industry, as part of the efforts to attain financial market stability in the economy,
President, Finance Houses Association of Nigeria (FHAN), Mr. Eddie Osarewkhoe, who dropped this hint in an exclusive with THISDAY at the weekend, explained that the apex bank has been working with financial market experts from Malaysia and other developed economies on how best to reform the sub-sector.
According to him, the banking watchdog has decided to put in place an international conference which is also expected to drive the restructuring process.
The FHAN boss said: “We (FHAN) are working closely with the CBN on an international conference. That way, we are going to attract people from Malaysia and other countries where finance houses have been operating successfully and have continued to contribute significantly to the growth of those economies. The programme is expected to jumpstart the reform process.
“If you look at the history of finance houses in Nigeria, you would find out that there were finance companies that have grown to become banks in this country. But the fact that we had a bubble in the 90s does not mean that you should close down that sub-sector. The CBN knows the relevance of the sub-sector that is why it has kept it alive.”
Osarewkhoe argued that operators in the sub-sector ought to have benefitted from the various intervention funds that were disbursed by the banking watchdog last year. He declared that the financial intermediary role played by his members, especially in the funding of small and medium scale Enterprises (SMEs), there was a need to create an industry intervention funds for operators to leverage on.
He further argued that the withdrawal of the universal banking licence, had offered operators in the sub-sector more opportunities to embark on large transactions.
“We have looked at the whole environment and the emerging opportunities in the market, especially with the new banking model which has asked banks to leave Universal Banking. That has created its own window of opportunities for Finance companies. We have looked at it and identified a lot of opportunities where we can now play.
“We saw a situation where banks were almost taking over everything in the economy to the extent of even doing Local Purchase Order (LPO) financing which was even minute and which finance companies were actually mandated to do by law. They also went into leasing which is one of our core businesses and almost took it over as well as other small borrowings which finance companies render were taken over by the banks,” he added.
Regulators to Restructure MFBs for Agric Funding
11 Apr 2011
Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim
By Obinna Chima
Regulators of the Nigerian banking industry have disclosed plans to overhaul the Microfinance Banking sub-sector to enable it participate actively in the development of the agricultural sector.
According to the regulators, MFBs in the country were yet to play the role of poverty eradication for which they were created.
Managing Director and Chief Executive Officer, of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, who dropped this hint at a retreat on the Nigerian Incentive-Based Risk Sharing Agricultural Lending (NIRSAL) organised by the Bankers’ Committee at the weekend in Lagos.
Ibrahim explained: “We need to transform the microfinance banking sector. I strongly believe that the sub-sector also needs to be overhauled so as to play effective role in the funding of the agricultural sector and poverty eradication.
“We visited Bangladesh recently and we saw how the microfinance institutions in that country are empowering the people and supporting the growth of the economy.”
The Central Bank of Nigeria (CBN) had intervened in the sub-sector last year following lack of corporate governance structures among other anomalies engaged by microfinance operators.
To the CBN Governor, Mallam Sanusi Lamido Sanusi, the regulatory framework for microfinance banks has been developed by the apex bank.
“The regulatory framework for microfinance banks is ready, but I stepped it down so that we (the CBN) can review our supervisory duties,” he added.
To the Managing Director and Chief Executive Officer, Unity Bank Plc, Mr. Falalu Bello, the absence of banking services in the rural areas of the country had also affected the agricultural sector financing. He expressed optimism that the new banking structure which provides opportunity for regional banking would address the challenge.
“As operators, we must support and promote the idea of regional banking so as to develop the agricultural sector,” Bello noted.
Commenting further on insurance for agricultural products, Sanusi said: “Banks are there to take credit risk and they do not pass them to the insurance company. I have never believed in anybody coming to tell me that an insurance company is insuring credit risk.”
Skye Bank Records N12.7billion Profit
11 Apr 2011
Skye Bank Logo
The management of Skye Bank Plc said the Skye Bank Group recorded a profit before tax of N12.7 billion for the year ended December 31, 2010, as against the N845 million realised during the 15-month period ended in 2009.
Similarly, the Group’s profit after tax rose remarkably by N9 million in the previous year to N10.4 billion during the review period.
According to a statement from the Bank at the weekend, the result reflected significant progress towards realising its growth plans in spite of the very challenging operating environment last year.
The bank noted that the performance also showed gradual shift in its market segmentation focus to the top-tier corporate and commercial businesses, and an enhanced risk management structure.
The statement added: “The result also reflected the outcome of the business re-engineering process adopted by the bank as well as the collective hard work of its resourceful, competent and adaptive workforce.”
Other positive indices of the result include a 12 per cent growth in the bank’s assets from N632.5 billion in 2009 to N705.9 billion in 2010, which it attributed to the success of its business development activities. In the same vein, its loans and advances grew by 20 per cent during the year to N392.7 billion from N327.2 billion in 2009. Furthermore, the group’s total deposits increased by 11 per cent to N507.6 billion from N455.9 billion in the preceding year.
The statement explained that the Skye Group grew its shareholders’ funds to N109.3 billion from N88 billion in 2009, showing an increase of 21 per cent. Having consummated profitable relationships with players in key business segments, Skye Bank said that the results also reflected volume growth in treasury business, significant reduction in Non Performing Loans (NPL) and sustenance of bank-wide cost management measures which commenced late in 2009.
‘50% of Poorest Countries Can Escape Poverty by 2020’
11 Apr 2011
UN Logo
By Abimbola Akosile
A new United Nations report has revealed that half the world’s 48 least developed countries (LDCs) can “graduate” out of their impoverished status within 10 years if they benefit from better targeted development aid, duty- and quota-free access for exports and doubled farm productivity and school enrolment.
This, according to a UN release, is considered a bold objective, given that altogether there have been 51 LDCs since the category was created by the UN in 1970, and only three have graduated since then – Botswana in 1994, Cape Verde in 2007, and Maldives earlier this year.
“This is the time for global solidarity to achieve progress even in the poorest countries of the world, which will go a long way in advancing global prosperity and security,” says the report by the Group of Eminent Persons appointed by Secretary-General Ban Ki-moon to look into development problems facing the world’s poorest countries.
Issued ahead of the a conference on LDCs to be held in Istanbul from 9 to 13 May, which will seek to promote a 10-year programme for food security, decent work, disaster risk reduction, climate resilience and clean energy growth in the LDCs, the Report of Eminent Persons 2011 stresses that these countries can break out of a decades-long poverty trap, depending on determined national action and international support.
The Eminent Persons have taken up the theme that has emerged from intergovernmental negotiations for the next 10-year LDC plan of action aiming to graduate half of the current members of the grouping by 2020.
The report shows upward progress in category after category of economic and human well-being indicators by developed and dynamic developing countries, while LDC trends are close to flat-lining. Pointing to the high incidence of conflicts in countries with extreme poverty and weak institutions, it says “increasing marginalization of the LDCs is creating a future that we, as a global community, cannot afford.”
Measures advocated by the panel include adequate, prioritised and better targeted development assistance; duty- and quota-free access for LDC exports; doubling farm productivity and school enrolment; and beefing up the developmental and democratic capacities of LDC governments.
The Panel promotes an innovative scheme for cooperation with neighbouring countries in six sub-regions where LDCs are located, and links the LDCs themselves in geographically oriented self-help groupings. They include 33 in sub-Saharan Africa and outlying islands, 14 in South Asia and Oceania, and one (Haiti) in the Caribbean.
The drive for better global integration by the least developed countries is not starting from a standstill, the report notes. Since the previous LDC conference in Brussels in 2001, almost all have experienced strong per capita economic growth, and official development assistance (ODA) has risen sharply.
Also since 2001, LDC governments have progressed in terms of adopting democratic constitutions, increasing women’s role in government, and instituting economic reforms and new legal frameworks.
While dependence on primary commodities remains a problem, the LDCs’ significant share of the world’s strategic minerals, oil, arable land and eco-resources gives them an inside track on attracting trade and investment and diversifying economies, the study says.
The Panel is chaired by Alpha Oumar Konaré, former President of Mali and former Chairman of the African Union (AU) Commission, and James Wolfensohn, former President of the World Bank, and includes Kemal Dervis, now the Director of Global Economy and Development at the Brookings Institution and a former Administrator of the UN Development Programme (UNDP).
Riggs Ventures Investors Approve Listing
11 Apr 2011
NSE Building
By Goddy Egene
Shareholders of Riggs Ventures Limited have endorsed the company’s plan to be listed on the Nigerian Stock Exchange (NSE) before the end of this year.
The shareholders who gave the approval at the first Annual General Meeting (AGM) held in Lagos, commended the board and management of the company for sticking to the vision of becoming a listed firm despite the challenges in the capital market in particular and the economy generally.
Addressing the shareholders, Chairman of the company, Chief Rasheed Alaba Williams said that a turnover of N1.725 billion was recorded for the year ended March 31, 2010, compared with N1.681 billion posted in the corresponding period of 2009.
Addressing the shareholders, Chairman of the company, Chief Rasheed Alaba Williams said that a turnover of N1.725 billion was recorded for the year ended March 31, 2010, compared with N1.681 billion posted in the corresponding period of 2009.
According to him, profit after tax grew from N17.601 million in 2009 to N24.37 million in year ended March 31, 2010.
Despite the improved level of profit, the directors did not recommend any dividend.
Williams explained that dividend was not recommended because of the need to conserve funds for the company’s strategic plans to expand.
Despite the improved level of profit, the directors did not recommend any dividend.
Williams explained that dividend was not recommended because of the need to conserve funds for the company’s strategic plans to expand.
In his report to the shareholders, the Managing Director/Chief Executive Officer of the company, Mr. Yomi Tokosi, said that after the private placement in 2008, the number of shareholders increased from five, holding 382,336,236 ordinary shares of 50kobo each to 645, holding 880,395,546 ordinary shares of 50kobo each.
On its business strategy, the Tokosi said the company would increase the production capacity of its woven sacks plants, by diversifying into productions of cement / flour bags, increasing the capacity of its haulage business and proper positioning and deepening of its microfinance services.
On its business strategy, the Tokosi said the company would increase the production capacity of its woven sacks plants, by diversifying into productions of cement / flour bags, increasing the capacity of its haulage business and proper positioning and deepening of its microfinance services.
According to him, within the next six to nine months, the company would bring in machineries that will commence the production of cement and other laminated bags. He added that this would increase the capacity of the sacks plant by over 40 million bags a year.
He disclosed that in view of high cost of doing business and competition from older and well established firms that enjoy greater economic scale, Riggs Ventures has approached development finance institutions like Nigerian Export Import Bank (NEXIM) and African Export Import Bank (AFREXIM) for bridge finance, pending when the unalloted shares during the private placement have been sold.
He disclosed that in view of high cost of doing business and competition from older and well established firms that enjoy greater economic scale, Riggs Ventures has approached development finance institutions like Nigerian Export Import Bank (NEXIM) and African Export Import Bank (AFREXIM) for bridge finance, pending when the unalloted shares during the private placement have been sold.
Heirs Holdings, TEF Sign Deal with Tanzanian Firm
11 Apr 2011
Tony Elumelu
The Tony Elumelu Foundation (TEF) and Heirs Holdings Limited (HH) have announced the completion of an impact investment programme with Mtanga Farms, a Tanzanian based organisation as part of efforts to boost food security in Africa.
A statement from the HH at the weekend, explained that the deal marked the first time an African organization and an investment firm have engaged together in impact investing, adding that the approach that is targeted at solving social and environmental problems in that country.
Specifically, it said that the deal will help Mtanga establish a seed potato industry, which it stated would significantly benefit more than 125,000 local smallholder farmers, “who have proven able to increase yields threefold when provided with clean seed potatoes.”
“The effort is remarkable in that it unblocks a market that has been neglected for the past 30 years, with no new potato varieties registered in Tanzania and no clean seed available for farmers for decades. Mtanga Farms Limited (MFL) is a mixed arable farming business operating in the Southern Tanzanian Highlands. MFL owns approximately 2,200 hectares under long-term lease and is currently planting wheat, barley, maize and certain oil crops,” it added.
The statement quoted the Founder and Chairman of HH and TEF, Mr. Tony Elumelu, to have said: “With this deal, we hope to set a new standard for both philanthropy and investing within Africa. Through impact investing, we seek to drive African economic growth from within by investing in businesses that generate social, environmental, and financial returns."
The statement further said that the Mtanga deal will touch the everyday lives of hundreds of thousands of low income people in rural Tanzania by improving farmers' access to inputs and technology, creating infrastructure for farmers to bring their products to markets and contributing to the development of the Southern Tanzanian Highlands.
“Mtanga Farms is an example of how responsible foreign investment in agriculture can be commercially viable, environmentally sustainable, and also create substantial social impact through the benefits to small holder farmers and the contribution to food security. These are the kinds of sector specific criteria TEF considers when making impact investing funding decisions," the Chief Executive of TEF, Dr. Wiebe Boer added.
Diamond Bank Raises Additional Capital
10 Apr 2011
Alex Otti
In spite of the fact that Diamond Bank Plc's end year result for 2010 and first quarter 2011 both fell below market expectations, the bank has proceeded with plans to raise Tier 2 capital through a special placement or club deal.
A special placement or a club deal, in contrast to an open book bid, is a situation where a company, using a major fund raiser, approaches other large ticket institutional investors to invest in it.
The management of the bank is said to have gone ahead with the approval it obtained from its shareholders in November last year to raise $200 million in a number of tranches through bond issues.
The approval to raise new capital was one of many obtained by the management to restructure the bank as it positions itself under a reformed banking climate.
One of such moves was the decision by the shareholders to turn down the bank's former chairman, Mr. Pascal Dozie's desire to position his son, Uzoma, an executive director with the bank, to take over from Mr. Emeka Onwuka who had given notice of his resignation.
This decision led to the appointment of Alex Otti, who moved from First Bank of Nigeria Plc as the new managing director/chief executive of the Diamond Bank.
Industry insiders further confirmed that the recent retirement of 15 general managers by Diamond Bank are part of efforts by the bank to streamline its departments and operations.
However, there are concerns in the market that the bank's end of the year 2010 and first quarter 2011 results, which were disappointing and led to the bank's share price being punished by the market in recent trading, could also impact on the cost at which the bank raises capital.
Diamond Bank shares took a beating penultimate week when it released its year end result and were further punished last week after its first quarter results were released.
Trading on the bank's shares showed a progressive decline in value as a unit of its share, which was as high as 7.48 on March 24 crashed to an all time low of N5.36 at the close of trading Friday last week.
A breakdown of the performance of the bank’s share price showed that on March 29 it traded for N7.05, but fell to N6.70 on March 29.
Diamond Bank's shares continued their downward spiral on March 30 when a unit sold for N6.37, and dipped further on March 31 to N6.06.
On April 1, the bank’s shares sold at N5.76, and on April 4, it traded for N5.48. It sold for N5.65 and N5.93 on April 5 and April 6 respectively, then crashed to N5.36 last Friday.
Despite the fall in Diamond Bank's share price, market analysts don’t expect that it will not fall below N5.00.
However, analysts explained that the recent results of Diamond Bank could impact its rating, expressing fears that the risk premium on its bond issue could be higher.
In its 2010 full year result, Diamond Bank announced a N4.77 billion ($31 million) pre-tax profit compared to an annualised loss of N23.8 billion in 2009. Gross earnings also fell to N91 billion from N108 billion in the previous year.
In its first quarter 2011 result, it announced an operating profit of N6.3 billion, an increase of 28.6 per cent over N4.9 billion in March 2010, while the bank recorded a net interest income of N12.3 billion, an increase of 20.6% during the same period last year. Operating expenses remained stable at N11.9 billion (N11.6 billion in March, 2010).
Explaining the rationale for raising capital at this time, Mr. Abdul Yinusa, Chief Financial Officer of Diamond Bank, confirmed that the first tranche of 10 per cent of the $200 million, which amounts to $20 million, is at an advanced stage, and that the bank will use this placement as a price discovery for subsequent placements.
He expressed confidence that the bank’s performance would not deter investors or affect the cost at which the bond is raised.
According to him, “Our fundamentals remain very strong. For our first quarter 2011, our net operating profit was N6.3 billion,” but attributed the temporarily poor performance to the provisioning undertaken by the bank to clean up its balance sheet.
The reason for the provisioning of N4.5 billion, he said, is two-fold: “One leg of the provisioning amounting to N2.5 billion was the write down we incurred in the course of disposing of our non-bank subsidiary, Diamond Mortgages.
“In the course of doing so, the net cost or write down of this subsidiary investment was N2.5 billion.”
For the balance of N2 billion, he explained, that half was assigned to general provisioning as required by the Nigerian Accounting Standard Board, while another N1 billion was written down against legacy bad loans.
“Effectively, we run an institution with strong business fundamentals but the provisioning is required to clean up our balance sheet and is what impacted our figures.
“But we are confident that our non-operating profit for 2012 will reflect more in our bottomline of profit before tax and profit after tax.” Yinusa added that bank is also targeting a 20 percent return on equity in 2012.
He assured that when investors are investing in the bank, they are less concerned about the 2011 performance, “because they are long-term investments of seven years and we can add a sweetener to make it convertible on maturity.”
On this basis, the bank’s CFO maintained that the cost of the bank’s special placement would not be impacted by the temporary poor results of 2010 and Q1 2011, “because Diamond Bank’s long term fundamentals remain strong.”
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