Author: The Nation

  • U.K., Stock Exchange to deepen partnership for growth

    U.K., Stock Exchange to deepen partnership for growth

    By Taofik Salako, Deputy Group Business Editor

    The United Kingdom (UK) and the Nigerian Stock Exchange (NSE) have reiterated their commitment to improved partnership towards the development of the Nigerian capital market and the economy.

    Nigeria is the second largest destination for investments and U.K. businesses in Sub-Saharan Africa.

    Deputy British High Commissioner, Lagos, Mr. Ben Llewellyn-Jones was at the NSE, now known as Nigerian Exchange (NGX) Limited, at the weekend, as part of the efforts to deepen relationship between the U.K. and NGX. Llewellyn-Jones was given the privilege to ring the closing bell for the market.

    Llewellyn-Jones said his priority was to continue to create enabling environment for the growth of business relations between U.K. and Nigeria, especially through the Nigerian capital market.

    He noted that U.K. and NSE have historically been partners, pointing out that the U.K. has continued to build on the shared history between the U.K. and the Exchange, with the U.K. still very active in the Nigerian market.

    “My role is to not only celebrate that but also to grow, encourage and sustain this level of participation. Although it has been a difficult year economically and financially, I am encouraged by the resilience, creativity and positive performance of British businesses and investments here in Nigeria and I am grateful for this opportunity to talk about how much the U.K. will continue to do to support Nigeria and British businesses in Nigeria,” Llewellyn-Jones said.

    Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr Temi Popoola said it was historic that the British Deputy High Commissioner was the first person to beat the closing gong since the unbundling of the NSE and the renaming of its securities trading business as NGX.

    According to him, since the birth of the Lagos Stock Exchange, the British High Commission has remained a partner and supporting institution throughout its journey.

    “In the spirit of continued partnership, I welcome Mr. Llewellyn-Jones to the NGX as I look forward to deepening the partnerships between both organisations to further drive sustainable economic development for Nigeria and Africa as a whole,” Popoola said.

    He noted that partnerships are a critical element of the NGX’s strategy as it will continue to engage stakeholders whose support is essential to the achievement of its aspirations in the post-demutualisation period.

     

  • Stock Exchange’s shares hit market with N50b valuation

    Stock Exchange’s shares hit market with N50b valuation

    Taofik Salako, Deputy Group Business Editor

    The conversion of the Nigerian Stock Exchange (NSE) to a public limited liability company has reached a momentous completion, with the allocation of ordinary shares of the emergent holding company, Nigerian Exchange (NGX Group) Plc, to members of the defunct NSE, who are now shareholders in NGX Group.

    Regulatory and trading documents obtained at the weekend showed that the NGX Group issued two billion ordinary shares of 50 kobo each with a market value of N50 billion. A total of 1.964 billion ordinary shares of 50 kobo each were allotted to former institutional and individual members of the defunct NSE.

    The balance of 40.08 million ordinary shares of 50 kobo each, representing two per cent of issued share capital, was set aside as claims review shares for possible allotment to parties that may lay claims to entitlement to shares in the demutualised NGX Group.

    Trading data indicated that the NGX Group, which was listed on the NASD OTC Securities Exchange, started trading at N25 per share but declined to N22.67 per share at the weekend.This implies a net capital depreciation of about N4.7 billion during the immediate trading period.

    Shareholders also flooded the market with the newly issued shares, forcing the shares of NGX Group to close on offer. Market sources said they expected the share price of NGX Group to fall further, as the interplay of demand and supply strive to extract the true valuation of the stock.

    The newly listed NGX Group was the most active stock at the NASD, in terms of volume and value, with total turnover of 8.90 million shares valued at N211.81 million in 90 deals.

    The conversion of the defunct NSE from a not-for-profit, member-owned mutual organisation limited by guarantee to a profit-making, public limited liability company with shareholders, led to the creation of a holding company NGX Group with three subsidiaries  namely: Nigerian Exchange Limited (NGX Limited), the operating exchange, which took over the listing and trading function of the defunct NSE; NGX Regulation Limited (NGX REGCO), the independent regulation company which took over the self regulatory functions of the defunct NSE; and NGX Real Estate Limited (NGX RELCO), the real estate company that took ownership of real estate and other assets, including the iconic Stock Exchange building in Lagos.

    Under the arrangement for the conversion, otherwise known as demutualisation, NGX Group was created with an authorised share capital of 2.5 billion ordinary shares. A total of 2.0 billion ordinary shares of 50 kobo each were registered with the Securities and Exchange Commission (SEC) and were issued to members, with 40.08 million shares warehoused as claims review shares.

    The paid up issued shares were allotted to some 432 shareholders, including 255 institutional shareholders and 177 individual shareholders. The shareholding was arrived at by converting the dealing members of the Exchange to institutional shareholders and ordinary members to individual shareholders.

    According to the scheme, shareholdings would be on equal basis in the immediate conversion period with each institutional shareholder holding 6.01 million ordinary shares of 50 kobo each while each individual shareholder holds 2.44 million ordinary shares of 50 kobo each.

    With this, each institutional shareholder now holds 0.3 per cent equity stake while each individual shareholder holds 0.1 per cent equity stake, in line with the membership-share conversion ratio of 78 per cent for dealing members and 22 per cent for ordinary members.

    While the NGX Group has secured members’ approval to list its shares on NGX Limited, its shares were floated on the NASD after allotment in line with extant capital market rules.  Capital market rules require all securities of public companies to be registered with the SEC. Where such shares or securities are not listed on the regular exchange, trading on such shares or securities must be on a regulated over-the-counter platform registered by SEC.

    Managing Director, NASD OTC Plc, Mr Bola Ajomale, at the weekend, said NASD provides an orderly, lightly regulated and transparent environment with structure and experienced traders, which perfectly met the aspirations of the owners of NGX Group.

    “The market delivers on the basis of easy onboarding and withdrawal of securities into and out of the market space and the code for NGX – SDNGXGROUP was created at the depository within a 48-hour period.  We are pleased to be able to do our part in deepening the capital market by expressing our mandate of creating liquidity transparently,” Ajomale said.

    As agreed under the scheme, NGX Group’s shares would be allocated to all members-institutional and individual, living and dead, with shares due to deceased ordinary members and expelled or liquidated dealing members being allocated to their legal representatives.

    The Federal Government, through the Bank of Industry (BOI), many state governments including Adamawa State and several prominent Nigerian businessmen and policy experts are among a total of 432 individuals and institutions that hold shares of NGX Group in the immediate period of the conversion.

    Other shareholders include Mr Akintola Williams, late Senator Theophilus Adebayo Doherty, late Sir Odumegwu Ojukwu, late Alhaji Shehu Bukar, late former President Umaru Yar’Adua, late Bashorun MKO Abiola, late Dr Abdul Lateef Adegbite and late Mr Gamaliel Onosode among others.

    Other individual shareholders are Chief Ernest Shonekan, Alhaji Aliko Dangote, Alhaji Abdul Rasaq, Alhaji Aminu Dantata, Mr Tony Elumelu, Mr. Oba Otudeko, Mr. Pascal Dozie, Chief Bayo Kuku, Chief Christopher Ogunbanjo, Dr Christopher Abebe, Mr Goodie Ibru, Alhaji Isyaku Umar,   Otunba Adekunle Ojora, Mr Phillip Asiodu, Rear Admiral Allison Madueke, Rabiu Gwadabe, Mr Raymond Obieri, Senator Udo Udoma and Senator David Dafinone among others.

    Institutional shareholders will include GTI Securities Limited, CSL Stockbrokers Limited, Capital Assets Limited, Cowry Asset Management Limited, Meristem Securities Limited, APT Securities and Funds Limited, Capital Bancorp Limited, Centre-Point Investments Limited, Chapel Hill Denham Securities Limited, Emerging Capital Limited, Stanbic IBTC Stockbrokers Limited, Trust Yields Securities Limited and Vetiva Capital Management Limited among others.

    The demutualisation of the defunct NSE brought the Exchange to the full cycle of its history. The NSE was established as the Lagos Stock Exchange (LSE) on September 15, 1960 under the provisions of the Companies Ordinance 1922, with a share capital of £5,000 divided into 500 ordinary shares of £10 each. At incorporation, each of the original subscribers subscribed to five shares in the Exchange.

    Subscribers at incorporation included C. T. Bowring & Co. (Nigeria) Limited, Senator Chief Theophilus Adebayo Doherty, John Holt Nigeria Limited, The Investment Company of Nigeria Limited, Sir Odumegwu Ojukwu,  Akintola Williams and Alhaji Shehu Bukar.

    The share capital of the Exchange was subsequently increased to N20,000 consisting of 1,000 ordinary shares of N20 each, pursuant to an ordinary resolution dated December 2, 1977. The name of the Exchange was then changed from the Lagos Stock Exchange to the Nigerian Stock Exchange on December 15, 1977.

    However, following the enactment of the Companies and Allied Matters Act (CAMA) 1990, companies limited by guarantee were prohibited from being registered with a share capital; and all such existing companies were mandated to re-register without a share capital. The NSE was re-registered on December 18, 1990 as a company limited by guarantee and the then existing share capital of N20,000 was cancelled; and the equity rights of the initial subscribers extinguished. Thus, from then till the demutualisation, the NSE operated as a mutual company limited by guarantee with no issued or paid-up share capital; as such no individual or corporate entity had equity-based ownership rights.

     

  • Fixing Nigeria’s broken economy

    Fixing Nigeria’s broken economy

    Nigeria’s economy was not insulated from the ravages of the global pandemic which decimated lives and livelihoods across the world. The International Monetary Fund (IMF) says sub-Saharan Africa will grow by 3.4 per cent this year after a two per cent contraction last year. With rising inflation amid static income, tough choices lay ahead to take the economy out of the woods, LUCAS AJANAKU reports.

    Mama Joy runs a reatuarant in a busy market in Mushin, a Lagos suburb. Within six months of opening shop, she was able to mobilise enough cash to rent a shop. Business was fine as she enjoyed large patronage by buyers and sellers in the market.

    When COVID-19 broke out last year and led to inevitable lockdown of the economy, she closed shop. When the lockdown was eased and she attempted to stage a come back, she couldn’t because of factors such as consistent inflation. “When I tried to launch a come back to the business, I discovered that the price of food items kept skyrocketing. I tried to manage but it was difficult to breakeven, not to talk of making profit. I decided stop the business because I will be slaving for nothing,” she said.

    Her case is but one out of the several millions that have been rendered jobless by the rampants of a virus on a weak economy.

    Nigeria is the largest economy on the continent but the Nigeria Bureau of Statistics (NBS) report showed that  one in three people in the economy were unemployed.

    It has also announced that food inflation has accelerated at the highest pace in 15 years, compounding the misery of many households.

    “I have tried to adjust my budget as much as possible to live within my income but it has not been easy. I have three kids in school. It’s been hell trying to ensure they eat one good meal a day,” Peter Onyeka, a 51-year-old electronics seller in Ayobo, a Lagos suburb, said.

    According to a COVID-19 impact survey published by NBS last month, the coronavirus pandemic has robbed 70 per centof Nigerians of one form of income or the other.

    Food inflation rose to 22.95 per cent in March, caused by wide-ranging price increases across items such as cereals, yam, meat, fish and fruits. The soaring prices have been in part blamed on insurgency, banditry, cattle rustling which have taken huge toll on food security.

    The unrest, combined with the more than decade-long Boko Haram insurgency in the north, a weakening currency and higher fuel prices have also contributed to rising food prices, according to SBM Intelligence, a Nigerian research firm.

    According to FSDH Capital Limited, Nigeria has a major revenue challenge. Despite the increase in crude oil price early this year, external reserves continue to dip, mainly due to stagnant crude oil production.

    This means the country will struggle to take advantage of higher oil prices in the early part of this year, until the Organisation of Petroleum Exporting Countries (OPEC) relaxes production quotas.

    The implication is that oil revenue will continue to be challenged and could fall below its projection of N2.4 trillion in the year.

    Non-oil revenue will be higher than the actual N2.42 trillion realised last year, but lower than the projected N6 trillion. Structural challenges, a large informal economy and tax compliance issues, are factors that will limit growth of non-oil revenue.

    Experts have recommended some policy directions to bail out the economy from the woods. Some of such policies are economic diversification and full deregulation of the downstream oil sector of the economy.

    While the first option has been largely embraced by the Federal Government, the second has remained hanging and has put the Federal Government at the crossroads and brought forth the Shakespearean question in Hamlet: “To be or not to be…” The Federal Government, however, appears ready “to take arms against a sea of troubles” as it has indicated its desire to fully deregulate the downstream oil sector this year.

    Both the Minister of State (Petroleum) Timipre Sylva and the Group  Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC), Mele Kyari, are on the same page on the issue.

    “We have been talking about deregulation for decades. Unfortunately, we have not succeeded. We have succeeded in deregulating some products,” the minister had said.

    In what appeared like testing the waters, the  Petroleum Products Pricing Regulatory Agency (PPPRA) had released a template increasing petrol price to N212 per litre. The template, which was like a red rag to a bull, was later deleted as public outcry mounted.

    Kyari said NNPC could no longer bear the burden of underpriced sale of petrol. He said the market price needed to be implemented.

    He said NNPC pays between N100billion and N120 billion a month to keep the pump price at the current levels.

    He said: “The price could have been anywhere between N211 and N234 to the litre. The meaning of this is that consumers are not paying for the full value of the PMS that we are consuming and, therefore, someone is paying that cost.

    “As we speak, the difference is being carried in the books of NNPC and I can confirm to you that NNPC may no longer be in a position to carry that burden.”

    Kyari said the government was working to deepen the auto-gas programme, which will serve as alternative to petrol.

    “That is why early last year if you recall, the full deregulation of the PMS market was announced and we have followed this through until we got to September when prices shifted to N145.

    “As we speak, I will not say we are in a subsidy regime but we are in a situation where we are trying to exit this subsidy or underpriced sale of PMS until we get in terms with the full value of the product in the market.

    “Today, PMS sells across our borders anywhere above N300 at any of our neighbours. And in some places, it is up to N500 and N550 to the litre.

    “In some countries, the Nigerian fuel is their primary fuel.We are supplying almost everybody in the West African region, so it is very difficult to continue this because we have our own issues and that is why the eventual exit from this is completely inevitable.

    “When that will happen, I do not know. But I know that engagements are going on. The government is very concerned about the natural impact of price increases on transportation and other consumer segments of our society and as soon as those engagements are taken to logical conclusion, I am sure that the market price of PMS will be allowed to play at the right time.”

    Stakeholders’ views

    The government’s body language has elicited mixed reactions from stakeholders in the industry.

    The Major Marketers Association of Nigeria (MOMAN) has welcomed the resolve of the government to completely deregulate the industry.

    Its President, Tunji Oyebanji, said deregulation as understood, is a situation where the forces of demand and supply are allowed to determine the price at which a product would be sold. It is not a situation where an agency of the government sits somewhere and fixes the price of the product.

    He said it doesn’t make sense for the government to go borrow money and instead of using such money to provide the basic infrastructure that will drive the economy, it will be used to subsidise domestic fuel consumption. He said the organised labour that has been on the vanguard of stiff opposition to the reform of the downstream oil sector must note that it is helping to destroy the system.

    He flayed the attitude of Nigerians, who he said, never wanted to pay for fuel. According to him, in Ghana, a litre of fuel costs N400 inclusive of tax. He said the impression is created that it is only in this country that people are suffering. “we must endeavoiur to adjust our life style. That is what people in other countries do,” he said.

    The Director-General, Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, said the deregulation conundrum is a major cause for concern.  “There are a number of critical issues that need to be aligned. We have the huge economic cost of petrol subsidy and the inherent huge fiscal leakages which are clearly unsustainable. There is the social cost of the possible increase in petrol prices and the worryabout possible backlash. There is the adverse investment effect on the downstream sector resulting from policy uncertainty and inconsistencies.”

    He said private investors will be reluctant to invest in petroleum refining if the subsidy regime persists.

    “The reality is that the deregulation of the petroleum downstream sector is inevitable if the economy must progress and put an end to the corruption that comes with the subsidy regime.  But the policy transition needs to be strategically worked out,” Yusuf said.

    Another marketing body, Independent Oil Marketers Association of Nigeria (IPMAN), also agreed with him.

    Its Vice President, Alhaji Abubakar Maigandi, said the group is in support of the government in view of the realities on ground.

    The National Union of Petroleum and Natural Gas workers of Nigeria (NUPENG) is, however,  against the deregulation policy that is import-dependent.

    Its Southwest Chairman, Tayo Aboyeji, said the government ought to have fixed the local refineries and encourage others  to be streamed before contemplating full deregulation of the sector.

    Aboyeji insisted that deregulation is not the answer.

    He said: “You cannot deregulate while you rely on importation. An import-driven deregulation will see the price skyrocket. Look at diesel. The price of diesel has been on the rise. If the refineries are working and we have products in-country, the price of petrol will not increase. If the Federal Government goes ahead to fully deregulate the downstream oil sector, there will be crisis.”

    The Manufacturers Association of Nigeria (MAN) has also thrown its weight behind the move.

    Its former Acting Director-General, Mr. Ambrose Oruche, told The Nation that the era of fuel subsidy bred corruption, as the subsidy hardly got to the intended citizens, but to those he described as “briefcase billionaires.”

    Oruche, however, noted that the review in fuel price would further spike inflationary trend. According to him, the country is battling cost-push inflation and the hike in fuel prices would further affect Nigerians’ cost of living. He also said fuel price increases arising from deregulation definitely has implications on businesses, especially small businesses that depend largely on petrol to power their generators.

    He said, for instance, that it will affect the cost of running businesses because office cars have to be fuelled at a high cost. He also said the development has no impact on big businesses that use AGO to power their electricity, as “They are already accessing AGO at a deregulated price, at a very high price.”

     

    Cushion for pains

    The impact of full deregulation is not lost on the stakeholders. Petrol price will, inevitably, go up in a fragile economy with weak infrastructure, spiraling inflation, food insecurity as a result of banditry and a growing army of jobless youths.

    Oyebanji said the Federal Government has promised to intervene in providing and promoting alternative clean energy to the citizens. He said the government is exploring Compressed Natural Gas (CNG) for cars.

    He however said the challenge in this alternative is the speed. For one, there are no ubiquitous conversion stations in the country and for another, there are also not enough CNG filling stations too.

    According to the MOMAN chief, a typical conversion plant could do only between 10 and 15 cars per day, a figure that is a far cry when compared with the millions of cars on the roads in the country.

    He said for the government to attract investment into the conversion business, cash must be involved to support the investors.

    Maigandi said IPMAN would encourage the Federal Government to seek alternative fuel for oiling the engine of the economy.

    He said the CNG alternative is good, adding that the government has agreed to extend facilities to marketers to ensure its success.

    According to him, government officials are already taking census of the filling stations in the country to supply CNG dispensing equipment and conversion tools.

    He said the government has all the capacity to make it work if it is determined to do so.

    “We marketers are standing in support of the Federal Government hoping it will however not bring hardships on the common man,” he said.

    Aboyeji disagrees with Yusuf that deregulation will spur foreign investment in the downatream oil sector.  He said Dangote is not a foreign investor.

    The government, he said, owed the citizens the responsibility to explain why the local refineries have not been working, refining zero fuel yet incurring billions of debts in running cost.

    The LCCI chief said there could be a social pricing window in the interim where petroleum products could be sold at a subsidised price.  “NNPC stations could be so designated since they exist in all parts of the country. The government will have to provide a limited budget for this.The other players in the sector should, thereafter, be allowed to buy and sell according to the dictates of the market. We need to free the sector from the current suffocating regulatory framework. The economy has suffered major setbacks as a result of the over regulation of the sector,” he said.

    Oruche said the government should invest more in efficient power generation and distribution to ensure electricity supply for at least, 20 hours a day.

    He said: “That is a way to reduce the dependence on PMS to power generators, because we are depending on PMS , making PMS a premium because many of us depend on it to power our small generators for our households and businesses.

    “But when electricity is there, we don’t need to buy PMS. PMS is now left for those that want to buy for their cars.”

    Oruche also urged government to find a way of compensating small businesses that are faced with the price increase through tax rebate or grants in order to remain in business.

     

  • GM, LG Energy to build second battery cell plant

    GM, LG Energy to build second battery cell plant

    General Motors and its electric vehicle joint venture partner LG Energy Solution said on  Friday they will invest $2.3 billion into a second battery cell plant for electric vehicles in the United States.

    Ultium Cells LLC, the GM-LG Energy joint venture, will operate the plant in Spring Hill, Tenn. The plant will support the production of GM’s Lyriq crossover and other electric vehicle production at GM’s assembly plant in Spring Hill.

    Ultium Cells is currently building its first plant in Lordstown, Ohio.

    “The addition of our second all-new Ultium battery cell plant in the United States with our joint venture partner LG Energy Solution is another major step in our transition to an all-electric future,” GM Chairman and Chief Executive Officer Mary Barra said in a statement.

    LG Energy Solution President and CEO Jonghyun Kim, said: “This partnership with General Motors will transform Tennessee into another key location for electric vehicle and battery production. It will allow us to build solid and stable U.S-based supply chains that enable everything from research, product development and production to the procurement of raw components.”

  • Firm begins PMS-to-gas conversion in June

    Firm begins PMS-to-gas conversion in June

    THE Managing Director of Autogas Africa THLD Group, Mr Segun Olajuwon, said the firm would start the conversion of vehicles’ Premium Motor Spirit (PMS) to gas in June.

    He made this known at the launch of Autogas at Flash Gas station in Ojota New Garage, Lagos.

    The project is in conjunction with the Flash Gas.

    It would be recalled that the Federal Government said it would convert one million vehicles running on PMS to gas by the end of the year.

    Group General Manager/Special Assistant on Media to the Minister of State for Petroleum Resources, Garba Deen Muhammad, said the conversion would be expedited with the official launch of the National Gas Expansion Programme (NGEP) last December 1, by President Muhammadu Buhari.

    According to Olajuwon, the Flash Gas station will convert up to 30 vehicles weekly.

    He said the government’s one million vehicles’ conversion was achievable

    “The initiative is part of 2017 Paris Convention resolutions to reducing Greenhouse gases. A million vehicles conversion by the end of the year is achievable because gas is available. It is clean. We took a bold step to set up this facility to key into the government’s policy,” he said.

    Managing Director, Planet Projects Limited, Biodun Otunola, urged government to kick start the conversion with passenger vehicles.

    He described the policy as one of best in the transportation sector.

    According to him, average Nigerian spent 50 per cent of income on transport.

    “This is because of high cost of fuel. With this conversion, transport fare will crash. Let government implement it first with the public transport,” he advised.

    Special Adviser to Lagos State Governor on Transportation, Toyin Fayinka, described the initiative as laudable.

    Fayinka, who declared the facility opened, commended Autogas Africa THLD Group and Flash Gas station for partnering to kick start the project.

  • Mercedes S-Class: Redefining luxury segment

    Mercedes S-Class: Redefining luxury segment

    By Tajudeen Adebanjo with agency addition

    Mercedes-Benz has long billed the S-Class as the pinnacle of luxury and performance for the combustion age. It is intent on doing the same with an all-electric sibling.

    The EQS sedan, the German manufacturer, unveiled on last Thursday, boosts market-leading driving range and a luxurious interior rarely found in battery-powered vehicles.

    It is meant to usher in a new era for Daimler AG’s main brand, which spent decades designing high-powered combustion rides chauffeuring around captains of industry and heads of state.

    However, Tesla Inc’s Model S outselling the S-Class in markets, including the United States, proved that the electric shift would not spare the upper echelons of the automotive world.

    “Mercedes claims that the S-Class is the best car in the world, hence the EQS should be the best electric car in the world, and it will most likely be scrutinised with that expectation in mind,” said Roman Mathyssek, a consultant at Arthur D. Little GmbH.

    The bar for the Mercedes EQS is “very high in every respect,” Mathyssek added.

    Criticised for taking too long to embrace electric vehicles (EV), Stuttgart, Germany-based Daimler is under pressure to prove it can retain its engineering prowess in the electric age, where expertise in battery technology and software is key.

    Tesla is updating the Model S with a fresh high-performance version, and new rivals, such as Lucid Motors Inc, are plotting inroads into a lucrative segment still largely dominated by Mercedes, BMW, Audi and Toyota Motor Corp’s Lexus.

    The EQS, which features an optional digital panel stretching across the entire dashboard, would be the first Mercedes built on a dedicated platform for battery-powered vehicles.

    It does away with the engineering compromises that earned the brand’s first EV — the EQC sport utility vehicle — criticism from Tesla aficionados and Mercedes loyalists alike.

    Initial feedback from analysts who drove a camouflaged prototype of the EQS was positive.

    “Mercedes has succeeded in distilling the essence of its brand DNA into a completely new from-the-ground up platform. The EQS sets new benchmarks in comfort, handling, technology, material quality and we believe desirability for sedans in the EV space,” Societe Generale analyst Stephen Reitman said in a note.

    Sanford C. Bernstein analyst Arndt Ellinghorst said: “This is the ultimate ‘where luxury meets EV’ limousinee. It has an impressive performance and amazing interior.”

    According to Deutsche Bank analyst Tim Rokossa, the EQS is likely to “set the benchmark” in terms of technical features, design and quality.

    The vehicle could “improve the perception of the entire brand,” he added.

    Volumes of the EQS “will depend heavily on the price point versus competition,” UBS Group AG analysts led by Patrick Hummel said in a note, adding that they expect the electric model to cost more than a comparable S-Class.

    “While the vehicle is unlikely to challenge the performance of Tesla Model S, it will likely deliver a better luxury experience,” they wrote.

     

  • Jonathan’s canticles

    Jonathan’s canticles

    By Kayode Robert Idowu

    Former President Goodluck Jonathan is in perfect stead to take a broad overview of the Nigerian electoral process and make suggestions that could make the system work better. Amidst pervasive sit-tight syndrome in Africa, he was the first and perhaps only leader yet on the continent to concede defeat in an election he contested as an incumbent even before the poll was formally called by the umpire. Since he lost re-election as Nigeria’s leader in 2015, he has postured as a statesman and has been enlisted by multilateral agencies to lead observer missions to elections in African countries and beyond. Thus, he is perceived as having learnt by personal practice and by observing practices in other milieu what it takes to have elections that come high on the integrity scale.

    The ex-president early last week shared perspectives on what ails our elections in this country and remedial steps that could be taken towards meeting up with global best practice. Speaking during a media visit in Abuja, he canvassed the view that the ballot solely should determine who occupies electoral offices in the land and not judicial orders resulting from litigation by political gladiators. According to him, the high rate of litigation evidences less that satisfactory quality of elections because countries that conduct free and fair polls experience few election-related court cases whereas fragile democracies are hallmarked by numerous court cases trailing elections. In another vein, he deplored the high cost of elections in Nigeria and urged that voter inducement be criminalised.

    Jonathan’s advocacy about the primacy of the ballot resonated against the backdrop of multiple instances of the Nigerian judiciary overruling poll outcomes declared by the Independent National Electoral Commission (INEC) and imposing court-ordered outcomes. For example, Bayelsa Governor Duoye Diri of the Peoples Democratic Party (PDP) was ordered into office by the Supreme Court after the candidature of David Lyon of the All Progressives Party (APC), who the electoral commission returned as winner of the state’s governorship vote, was disqualified by the court. Before that, the apex court had sacked Emeka Ihedioha of the PDP who had been returned by INEC as winner of the  governorship poll in Imo State and installed Hope Uzodinma of the APC . There were others like Rivers and Zamfara states where the judiciary voided whole party lists and saddled the electorate with no-choice options of alternative parties.

    According to the ex-president, the standard practice should be that the election management body exercises sole responsibility for returning poll winners while the judiciary complements by either upholding declared results or nullifying flawed elections and ordering reruns. “The ballot paper should be the only basis for selecting political leaders. I have said this before and will always repeat it. I am not saying the judiciary is not doing well, but my point is that our laws should suppress the issue of the judiciary returning candidates. If a candidate is declared winner after a flawed electoral process, what the courts can do is annul the election and order a fresh one where a winner will finally emerge through the ballot. The ballot paper should decide who holds any elective office from councillorship to the presidency. That is democracy,” he argued.

    In the Nigerian experience, political gladiators who lost elections fair and square have been known to openly threaten upturning voters’ choices through the judiciary. They boast that the duel isn’t over until they’ve deployed technicalities of law in the courts to thwart whatever was announced as poll outcome by INEC. It is tendency such as this that gives the proposition by Jonathan its resonance. In other words, our laws need recalibration to exclusively entrust voters with making electoral choices – whether rightly or wrongly made. Where voters make erroneous choices, it should be their prerogative to correct or, indeed, retain such error through the ballot at another opportunity. It shouldn’t be for any other authority, the courts inclusive, to foist remedy on them.

    All these presuppose, obviously, that the electoral commission is imbued with sufficient integrity to guarantee that the will of voters prevails at all times through its processes. But even where there are issues with the process, it should be only a last resort for the courts to annul polls and order fresh ones as Jonathan advocates, and that is where the flaws are gargantuan and fundamentally make announced outcomes untenable. Elections shouldn’t be lightly annulled because it costs huge sums to stage them and it would be an unsustainable drain on the nation’s treasury to have casual reruns. It isn’t for nothing that elections are spaced in most countries. Israel might seem an exception, having staged four parliamentary elections within two years; but that was because the outcomes of those polls were repeatedly gridlocked and fragile alliances crafted to run the country have been collapsing. Even then, Israel is not a good illustration of elections that come costly, considering that the country has a virile economy with a voter population of just 6.5million, unlike Nigeria with wobbly economy and over 84million voter population.

    By the way, Jonathan did say high rate of electoral litigations signpost poor quality of elections and hallmarked fragile democracies. That is true. But it can be argued that the tendency as well derives from the desperation of political actors and sometimes obtains even in developed democracies. This was the case in the 2020 United States elections where ex-President Donald Trump fiercely resisted conceding the poll and mounted multiple legal suits to upturn the victory of President Joe Biden but was thwarted by American courts. Where politicians are sportsmanly about elections, the rate of recourse to litigation would be minimal and the courts would have fewer invitations to review voters’ verdicts.

    The other issue of worry for the former Nigerian president is vote buying and voter inducement by political gladiators, which he advised should be criminalised and offenders barred from polls. “The problem we have in Nigeria is the use of money to induce voters. Compared to other African countries, we spend too much money here. Probably, we need to review our laws because I have observed a number of elections in African countries. For instance in Tanzania, a candidate (cannot) print his name on matchboxes or any items to woo voters. If you do that, they say that you are inducing the electorate. It is against their laws. But here if somebody is contesting elections, you buy bags of rice, wrappers and all manner of items to induce the electorate. Ordinarily, our electoral laws should frown on such practices. If you do that, you should be disqualified from contesting in the election,” he said.

    While Jonathan’s concern is highly germane, Nigerian law already criminalises vote buying and voter inducement. Section 130 of the Electoral Act 2010 (as Amended) does this, with sub-section (a) of that section criminalising the inducer while sub-section (b) criminalises the induced voter and stipulates as penalty for both a fine of N100,000 or 12-month imprisonment or both. The challenge, apparently, is that the law is not being vigorously applied, and that might be because of the mammoth scale of violation. The pervasiveness of violation is itself a function of the desperation of political actors for power amidst increasing use of technology by INEC to foil historical abuses of the balloting process. But there are also the factors of distressful socio-economic circumstance of most Nigerians and widespread illiteracy, among others, which predispose the average voter to exchanging his voting power for a mesh of pottage. Meanwhile, these are factors that only the power elite – those who exploit the very factors to readily induce voters – are in the best position to remediate.

    The observations by ex-President Jonathan are timely and almost read like a liturgy for the lawless. The challenge with Nigerian elections in my view, however, isn’t per se the laws, but our political culture and sociological context. It is as Cassius, in William Shakespeare’s Julius Caesar, says: “The fault, dear Brutus, is not in our stars, but in ourselves, that we are underlings.”

    • Please join me on kayodeidowu.blogspot.be for conversation.
  • At last, America withdraws from Afghanistan!

    At last, America withdraws from Afghanistan!

    By Alade Fawole

    At last, US President Joe Biden has announced his administration’s intention to withdraw America’s combat troops from Afghanistan by September 11, the 20th anniversary of the terrorist bombing of the World Trade Centre in New York. Other NATO and coalition troops would also be fully withdrawn latest by that date. Biden’s decision to end the longest and costliest war in American history is not only courageous but also makes absolutely perfect sense. Except perhaps for war-mongers in the Pentagon, the defence contractors, armaments manufacturers and the politicians whose elections they bankroll and for whom war is good business, getting out of Afghanistan after two decades of what, to borrow General Omar Bradley’s characterization of the Korean War, can be justifiably described as “a wrong war, at the wrong place, at the wrong time, and with the wrong enemy.”

    A cursory glance at the compelling statistics will reveal why the withdrawal decision makes good sense. In the 20 years of the bloodbath, the US expended a staggering sum of $2 trillion, lost 2,400 service men, and recorded 20,700 wounded service men, according to The New York Times, April 14. With the exception of the casualty figures on the Afghans side, all other statistics of the war are so staggeringly unfavourable to the United States and so weighted against rationality and commonsense for America to want to continue with it. Afghanistan’s casualties is put by some reports at 157,000 deaths, of which roughly 43,000 were civilians; 235,000 displaced according to UNHCR; accompanied by extensive physical destruction, massive environmental contamination from exploded ordinance and their attendant diseases and ailments; risks and dangers from unexploded munitions and landmines scattered over the Afghan landscape; large numbers of child and youth soldiers who have never known anything but war and who will necessarily pose post-war danger to the civil population; widespread hunger and starvation among the displaced, etc. These are the deadly footprints that America is leaving behind in hapless Afghanistan after 20 years of bloodshed. Does it make any sense to continue inflicting these horrors on a people?

    Another reason to discontinue the war is that you cannot fight a war of an indeterminate duration in someone else’s territory and expect to win totally. Except you totally annihilate your adversaries, all that they need do is patiently wait you out, knowing that someday you’re gonna become exhausted and war-weary that you’ll contemplate packing up and leaving for home. This is one such war that America could never hope to win, for the stakes are different for Americans, fighting a foreign war that majority of them could not see the need for, and for the Taliban for whom the war is an existential imperative, a fight for the control of their land and way of life as they see it.

    Waiting America out and wearying its soldiers on the battlefield has been a part of the Taliban’s playbook. Experience has taught them that, at some point, domestic pressures in the US would eventually render continuation of the foreign war no longer defensible, more so that America has not recorded any meaningful and sustainable victory on the battlefield where its youth have been dying for no apparent just cause. One would ordinarily have expected US policy makers to have learnt this from their Vietnam experience: no matter what military victories you record on the battlefields you will never totally defeat foreign adversary permanently on its own soil! This is more when the Taliban are obtaining foreign support from some of America’s friends such as neighbouring Pakistan, and even notable adversaries like Russia whose predecessor, the defunct Soviet Union, was humiliated out of Afghanistan with the help of the US, and others such as Iran. What goes around surely comes around so, for the Russians, it’s time to pay America back in its own coins!

    Let’s remember how America got into this war in the first place. Its forces launched a massive invasion of Afghanistan to oust the Islamist extremist Taliban regime of Mullah Muhammad Omar in Kabul whom America had accused of sheltering Osama bin Laden, the leader of the Al Qaeda terrorist group presumed to have masterminded the terrorist attacks on the World Trade Centre in New York and the Pentagon on the outskirts of Washington DC. on September 11, 2001. The pretext was that Mullah Omar had refused to surrender bin Laden, and, pronto, two of the most hawkish war-mongering neocons in the George W. Bush administration, Defence Secretary Donald Rumsfeld and his deputy at the Pentagon, Paul Wolfowitz, both who would also cause invasion of Iraq two years later in 2003, went to work on the invasion plan. Osama bin Laden’s presence in Afghanistan had served as the casus belli for America to change the regime in Kabul.

    It is hard to say what this withdrawal portends for Afghanistan’s future, for no government has been able to withstand the Taliban without the backing of US and allied forces. It is doubtful that the present government of President Ashraf Ghani can withstand the expected Taliban onslaught once the coalition forces withdraw. But then, it is better to allow the Afghans to sort out their own internal problems whichever way they can, than allow Americans to continue destroying their country and disrupting their lives in a war that is clearly unwinnable. After overawing the Afghans in the early days of the invasion and ousting the Taliban, the war has bogged down to fire-fights with no discernible winners, and it became quite clear years ago that the problem of Afghanistan didn’t admit of purely military solutions alone.

    Like them or not, the truth is that the Taliban are a persistent and enduring feature of Afghan politics and society, and likely to remain so for the foreseeable future. Overall, America’s policy has been a failure, and no countries would be more pleased to gloat than America’s foes like Russia, Iran, Pakistan and China, all who are seeking a stake in a post-American Afghanistan! It is a cruel irony that the same Taliban that American forces ousted from Kabul 20 years ago is also the one now literally chasing America out of Kabul. They will return to power and once again re-impose their brand of extremist Sharia rule that America’s invasion had halted two decades ago.

    After more than four decades of endless war that had begun with the Soviet invasion in 1979 and later America’s own in 2001, there is no doubting that Afghanistan truly needs durable peace, but it is doubtful under impending Taliban forceful take over. No one knows the fate that awaits the long-suffering Afghan but it does not seem a pretty one, judging by the Taliban’s previous record of extreme brutality, wanton violation of human rights and fundamental freedoms, restriction education for females, summary executions, etc. Afghans do not need further interference by self-appointed foreign do-gooders in their internal affairs. What they need instead is genuine and altruistic support of the international community, to help them restore sustainable peace and stability to their war-ravaged country, put in place a good, responsible and accountable governance system. But whether they will ever get it is anyone’s guess.

    • Prof Fawole is of Obafemi Awolowo University, Ile-Ife.
  • Bad bosses

    Bad bosses

    By Femi Macaulay

    At least three former army chiefs have a lot of explaining to do on the federal government’s purchase of weaponry since the country’s security crisis began about a decade ago. That was the takeaway when the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, on April 12, finally honoured the invitation of the ad hoc committee of the House of Representatives investigating the government’s procurement of arms and ammunition from 2011 to date.

    He had failed to honour its invitation on three occasions.  According to a report, the army boss “explained to the lawmakers that his inability to honour several invitations of the committee was due to other engagements on internal security.”  The report said:  ”He, however, refused to apologise to the committee, noting that his explanation was sufficient.”

    Lamentably, he exhibited a lack of respect for the committee.  He should have acted with a sense of courtesy. He is expected to concentrate on tackling worsening insecurity in the country, and should have understood that the legislative investigation was also aimed at dealing with mounting insecurity.

    Notably, the committee was mandated to review the purchase, use and control of arms, ammunition and related hardware by the military, paramilitary and other law enforcement agencies. Its chairman, Olaide Akinremi, was reported saying Nigeria spent about $47.387 million on arms in 2019.

    On the investigation, Lt. Gen. Attahiru told the committee to focus on his predecessors, saying he “took over the mantle of leadership barely two months ago.” According to him, “Issues of procurement that you so demand to know were done by specific individuals. I will rather you call these individuals to come and explain to you very specific issues.”

    His predecessors, relevant to the legislative investigation, were lieutenant generals Azubuike Ihejirika, Kenneth Minimah and Tukur Buratai. Ihejirika was army boss from September 2010 to January 2014, three years and four months; Minimah from January 2014 to July 2015, one year and six months; and Buratai from July 2015 to January 2021, five years and six months.

    Interestingly, in August 2014, Ihejirika had faced an allegation that he was a major Boko Haram sponsor. It was an incredible allegation, considering that he had been the head of an army fighting against the Islamic terror group. It was baffling that the allegation came from Dr Stephen Davis, the Australian negotiator who had worked with Nigerian security agencies in connection with the rescue of the Chibok schoolgirls abducted by Boko Haram in April 2014.  The State Security Service (SSS) said the ex-army chief was innocent.

    Also, in January 2016, the Economic and Financial Crimes Commission (EFCC) seized an Abuja estate said to be owned by Ihejirika, who was among ex-military top brass probed concerning a $2.1 billion arms scandal involving a former National Security Adviser, Sambo Dasuki.

    Increasing insecurity fuelled by terrorism, banditry and kidnapping, continues to expose the incapacity of Nigeria’s military. National Security Adviser Babagana Monguno was thought to have given clues as to the cause of the military’s ineffectiveness when he was recently reported saying that “huge sums of money” approved for the purchase of weapons were “missing” and the weapons “were not bought.” He later claimed he had been “quoted out of context.”

    The import of the remarks he disclaimed is that the military is ill-equipped to tackle the escalating insecurity.  It is understandable that federal lawmakers are investigating the government’s procurement of weaponry in the face of an alarming security crisis.

    Claims that the armed forces are poorly equipped to fight insecurity are not new.  For instance, Lance Corporal Martins Idakpini of the 8 Division, Sokoto, of the Nigerian Army, dared to speak truth to power in a 12-minute video that went viral in June 2020. He had criticised the military leadership for failing to provide adequate weapons to fight terrorism.

    Also, in two other videos, soldiers involved in the war against terrorism had claimed that the army was ill-equipped to defeat the terrorists. In one video, a former theatre commander, Maj. Gen. Olusegun Adeniyi, was seen and heard telling troops that “it appears the people we are fighting have more firepower than us.” He was court-martialled for embarrassing and ridiculing the armed forces.

    It is obvious that an ill-equipped military is a non-starter. But President Muhammadu Buhari, who is also the Commander-in-Chief of the Nigerian Armed Forces, has failed to address the issue decisively.

    Lt. Gen. Attahiru has indirectly stated that his predecessors should be held responsible for the ill-equipped armed forces the new service chiefs inherited. It was a subtle attack.  It remains to be seen if those concerned will be questioned in order to get to the bottom of the matter.

    Apart from the ex-army chiefs, other ex-service chiefs are relevant to the investigation by federal lawmakers. The chiefs of air staff in the period were air marshals Mohammed Dikko Umar, Alex Badeh, Adesola Amosu and Sadique Abubakar. The chiefs of naval staff were vice admirals O.S. Ibrahim, D.J. Ezeoba, U.O. Jibrin and Ibok-Ete Ekwe Ibas.

    Also, the chiefs of defence staff were Air Chief Marshal Oluseyi Peterin, Admiral Ola Ibrahim, Air Chief Marshal Alex Badeh and General Abayomi Olonisakin.

    Beyond finding out why the military is ill-equipped, despite billions of naira approved for procurement of weapons over the years, and punishing those who shortchanged the military, there is an urgent need to make the military better equipped.

    In particular, the war on terror has gone on for too long. It is more than a decade since the military launched its counter-insurgency operation, and Boko Haram continues to terrorise the country. Tragically, it looks like a war without end.

    There are disturbing allegations that the war on terror has become an inspiration for corruption in the military and political leadership; and those benefiting materially from it do not want the war to end. This may explain the situation in which the fighters are poorly equipped.

    The failure of the military leadership to adequately equip the military, in the period under investigation, is indefensible. It suggests bad leadership by bad bosses.

  • Inexcusable delay

    Inexcusable delay

    Editorial

    It is embarrassing that more than three months after the kick-off, on January 5, 2021, of the Federal Government’s Special Works Programme (SWP), the 774,000 participants in the first phase of the scheme are yet to be paid their stipends.  Conceived as a poverty alleviation measure to address the challenge of poverty among the growing number of unemployed youths in the country, particularly in the wake of the coronavirus pandemic that worsened the plight of the most vulnerable segments of the population, the SWP was designed to provide stop-gap three months jobs targeted at artisans who would earn N20,000.00 each, carrying out assigned tasks.

    With 1,000 youths engaged under the programme from each of the 774 local government areas in the country, the initiative was widely applauded as having the potential of significantly stimulating the grassroots economy through the N52 billion budgeted for its implementation. Unfortunately, just like many other otherwise laudable programmes in Nigeria, initially supposedly driven by compassion for the poor and the public good, the smooth take-off of the SWP was soon impeded by distracting ego clashes and bureaucratic politics.

    Thus, the programme could not commence on October 1, 2020, as originally scheduled, due to internal wrangling between the Minister of State for Labour and Employment, Mr. Festus Keyamo, and the former Director- General of the National Directorate of Employment (NDE), Mr. Nasir Ladan, over modalities for its implementation. Not even the intervention of President Muhammadu Buhari, who ordered the removal of Mr. Ladan, could guarantee that the SWP could then take off without delay.  For, there erupted, thereafter, a huge row between the National Assembly and Mr. Keyamo over the allocation of slots for the hiring of beneficiaries to the extent that the legislators directed that the implementation of the scheme be suspended.

    With the apparent resolution of the differences between the minister and the National Assembly, the programme kicked off on January 5, after N26 billion had been released for the procurement of equipment as well as for logistics. At this point, the potential beneficiaries, who were the proverbial grass that suffered while the elephants engaged in turf battles, must have heaved a sigh of relief that they could do some work and earn some money in these hard times. Alas, after fulfilling their own part of the three-month contract, the first batch participants are practically begging to be paid their entitlement.

    This is clearly inexcusable and an indication, once again, of the cavalier approach of many who are entrusted with onerous public responsibilities to their duties. For, had there been detailed and proper planning and methodical implementation modes in place, participants in the programme should have seamlessly collected their stipends as and when due. Indeed, on March 20, President Buhari directed that funds be released to pay the stipends and hours after this presidential directive, Mr. Keyamo not only ordered the NDE to start processing the payment plan, he assured the participants on his official Twitter handle that they would soon receive alerts of payment. No such alerts have been received over three weeks later.

    Of course, we do not expect the minister to carry out processing of documents and effecting payments. There are officials down the line who are paid to perform these functions and if they have been remiss in this regard, there must be sanctions to serve as future deterrence. Now that participants in the first phase of the programme have not been paid so long after completing their part of the contract, will this not affect the implementation of the next phase? Since the scheme is planned to be undertaken during the dry season, we urge that the first phase participants be urgently paid so that the next phase can commence and much impact can be made before the onset of the rains.