The Nation Newspaper

Category: Special Report

  • Indigenous investment and a new gas economy

    Indigenous investment and a new gas economy

    Nigeria’s indigenous investment in gas production and supply is at the core of the country’s quest for economic growth and diversification. With the Assa North /Ohaji South (ANOH) gas and condensate field project on course to deliver its first gas in first quarter 2021, Nigerian gas development will further accelerate massive domestic wealth creation, improve living standards and further connect Nigeria’s huge natural resources to a sustainable future economic growth and diversification. Deputy Group Business Editor TAOFIK SALAKO reports

     

    THE Assa North /Ohaji South (ANOH) gas and condensate field project, one of Nigeria’s largest Greenfield gas and condensate projects, is expected to play major roles in bridging critical socio-economic gaps and further stabilise the country’s domestic economic growth plan. The $700 million ANOH project represents the new force of indigenous investment as a major driver for national growth. A partnership between the Federal Government, represented by the Nigerian National Petroleum Corporation (NNPC) and Nigeria’s leading independent indigenous exploration and production company, Seplat Petroleum Development Company Plc, ANOH straddles Seplat’s OML 53 and Shell Joint Venture’s OML 21.

    Seplat is the operator and has a 40 per cent working interest in OML 53. The ANOH gas processing project is managed by Anoh Gas Processing Company (AGPC), an incorporated joint venture (IJV) between Seplat and the Nigerian Gas Company (NGC). AGPC shall develop a 300 Mscfd midstream plant on OML 53 to process future wet gas production from the upstream unit. With ANOH coming on stream and Seplat’s existing gas processing hub, Nigeria will considerably leverage its domestic gas potential with Seplat becoming the largest supplier of processed gas to the domestic market, connecting gas resources to Nigeria’s major economic centres along the Lagos and Abuja corridors. Connecting natural resources to critical national demand has been a major missing link in the Nigerian mix.

    Nigeria holds the largest gas reserves in Africa, with more than 37 per cent of total proven gas reserves in the continent, but Nigeria also has the comparatively poorest power supply with Nigerian businesses spending more than $30 billion annually on diesel generators. With a population of more than 200 million, Nigeria’s current active on-grid power generation is less than 4,500 megawatts. Experts agreed that Nigeria and Africa need a dramatic improvement in power supply to attain minimum living standards and stand a competitive chance in the emerging global economy. Africa is widely regarded as the most underpowered continent in the world, with six out of every 10 people in Sub-Saharan Africa (SSA) having no access to electricity. Despite the existing huge power gap, Africa’s burgeoning population is limiting its capacity to close the energy gap. Nigeria, Africa’s largest economy, is projected to become the world’s third most populated country with a population of 450 million by 2050.

    Nigerian Gas Association (NGA) President Mrs Audrey Joe-Ezigbo said the gas industry has significant prospects to transform the landscape of economic development in Nigeria, noting that it is a well-proven fact that there is a correlation between the amount of natural gas that is used and consumed in-country and the level of economic development of any nation.

    “Indeed, it is said that every $1 of gas that is consumed in-country contributes an extra $3 to the Gross Domestic Products (GDP). Opportunities abound for us to ramp up the pace of industrialisation in this country by building infrastructure to take gas across the country for use in power generation, as fuel and or feedstock in various gas-based industries, such as methanol plants and fertiliser plants. These industries allow us to create value addition and earn export revenue,” Joe-Azigbo said.

    She noted that while data from NNPC indicates that Nigeria has proven gas reserves of some 202 trillion standard cubic feet (Tscf), there is need to deliberately invest in exploration, production and monetisation of estimated 600 Tscf of unproven reserves.

    Seplat Petroleum Development Company Plc Chairman Dr Ambrose Orjiako said the indigenous company’s investments in long-term commercialisation of gas were in support of national economic growth and democratization of Nigeria’s natural resources as means of mass wealth creation for the citizenry.

    According to him, the decision to prioritise long-term commercial gas development was firstly to identify with the Federal Government’s agenda of closing the gap in power infrastructure and secondly to create wealth for the Nigerian people, with Seplat, which is quoted on the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE) offering a unique window for mass participation by the citizenry.

    “As a result, we have invested heavily in gas, and today Seplat is happy to say that we provide 30 per cent of gas to power in Nigeria, and still growing. We are supporting the government and the people of Nigeria in making sure that the narrative of the diversification of the economy is built on the platform of growth in power infrastructure. At present, statistics show that off the grid power supply in homes through gas, diesel and petrol generators is accounting for as high as 20 gigawatts of power. That tells you that the level of pollution in our environment is very high. Seplat will continue to contribute to cleaner energy from its gas supply. Also, it is important to note that our gas supply will power the industries, support small and medium enterprises (SMEs) and create jobs continuously,” Orjiako said.

    With $59 million distributed as cash dividends out of the net profit of N85.02 billion in 2019 business year, Orjiako said the company’s growing gas business would deliver higher growth and returns to shareholders over the years, thus indirectly passing the natural resources to the generality of Nigerians.

    “The other point, of course, is that gas is lucrative in the domestic market and is a significant contributor to our revenue base. The contribution of gas to our revenue is increasing year-on-year and we expect to see this continue to increase as the volatility in global oil price persists,” Orjiako said.

    General Manager, Projects, Shell Petroleum Development Company (SPDC), Mr. Toyin Olagunju, has said ANOH project would be a significant contribution to GDP growth across Nigeria noting that the gas from the hub will be utilised in-country across diverse industries while providing economic opportunities for local communities.

    Gas for all

    The plan to connect ANOH processing hub to Seplat’s existing Oben hub will create a vast East-West gas system that provides access to gas supply in a sustainable, safe and mutually beneficial way. Oben is a thriving gas hub with year-on-year increasing production efficiency. Gross production rose to 323 MMscfd in 2018, pushing Seplat’s gas revenue from $124 million in 2017 to $156 million in 2018. With two expansions in 2015 and 2017, gross processing capacity stands at a minimum level of 525 MMscfd. Gas is thus not only fueling domestic gas demand, but it is also making considerable returns to shareholders. Gas business’s earnings before interest, tax, depreciation and amortization (EBITDA) increased by 62.4 per cent from $85 million in 2017 to $138 million in 2018.

    Seplat Petroleum Development Company Plc Chief Executive Officer Austin Avuru explained that Seplat had in the past seven years built its domestic gas business to a position that it now provides sufficient gas to underpin some 30 per cent of Nigeria’s current active on-grid power generation. He noted that with the ANOH project operating at its first phase, Seplat will be able to supply processed gas capable of supporting 3,000 MW of power generation.

    “In a country where 20 million households are without power and rely on diesel generators or wood-burning stoves, our domestic gas business can lead to a material reduction in carbon emissions, health benefits through cleaner air, and economic growth through the provision of cheaper and more reliable electricity,” Avuru said.

    According to him, ANOH will see Seplat attaining the preeminent position of being the largest supplier of processed gas to the domestic market, connecting the large gas resources in the Niger Delta to the largest demand centres along the Lagos and Abuja corridors.

    “In addition to processing our gas, we will also have a larger and more geographically expansive presence with which to capture third party tariffing opportunities and build out capacity further. We have secured the accommodation space at both Oben and ANOH to give us the headroom to expand each location up to 1 Bscfd processing capacity in the future. The gas business has tremendous growth potential,” Avuru said.

    He said the company plans to invest more than $100 million in capital expenditure in 2020, including the development of two new gas wells and associated infrastructure,” Avuru said.

    A common pool

    Beyond its importance to critical hardware national infrastructure, Seplat’s ANOH is also helping to deepen the Nigerian financial markets. A mix of several domestic and foreign financiers provided opportunities for Nigerian financiers to lock in domestic values while cross-fertilising ideas. The locked-in value of the expanding gas business is also impacting on Seplat’s fundamentals and share pricing at the Nigerian stock market. Key extracts of the audited report and accounts of Seplat for the year ended December 31, 2019, showed that profit before tax rose from N80.6 billion in 2018 to N89.91 billion in 2019. With the reduction in tax provisions from N35.75 billion in 2018 to N8.94 billion in 2019, net profit after tax leapt from N44.87 billion in 2018 to N85.02 billion in 2019. Total turnover had dropped from N228.39 billion to N214.16. Earnings per share thus improved from N78.92 in 2018 to N149.35 in 2019.

    “We remain profitable as a company, we have continued to be cash generative, a very strong revenue earner, we have also remained profitable. Profit after tax of $277 million is quite remarkable; and at the back of that, we have maintained very healthy cash balances. We have maintained the payment of dividend which is a very good return to our investors. We have of course continued to be very good corporate citizens. We have paid huge sums of money in taxes and royalties to the Federal and State Governments. Our very well acclaimed Corporate Social Responsibility (CSR) programmes are ongoing and growing especially in areas where we operate, but also in Nigeria as a whole. We have also continued to maintain a very healthy workforce while generating jobs,” Orjiako said.

    As the gas economy evolves, most experts agreed that policy formulation must include extensive consultation and consideration for private sector investments in order not to jeopardise the progress made. Facility for Oil Sector Transformation (FOSTER), oil and gas industry advocacy group, noted that while the government may want to leverage gas as a national incentive for sectoral development, an extension of a special pricing arrangement to any sector should be preceded by extensive consultation, in-depth research and an assessment of the consequences of such arrangements. FOSTER pointed out that the National Gas Policy 2017 particularly recognises the importance of stakeholders in regulatory decision making citing the example of provisions that require that regulated tariff for monopoly infrastructure, which is to be based on a tariff methodology and model developed by the petroleum regulatory authority, should have input from stakeholders.

  • COVID-19: Winds against resetting economy

    COVID-19: Winds against resetting economy

    The COVID-19 pandemic and the slump in oil price have inflicted substantial revenue losses on both the Federal and State Governments thus exposing Nigeria’s failure to walk the economic diversification talk. However, the crisis has presented another opportunity for Nigeria to vigorously pursue diversification. But sadly, the state governors may have failed to rise to the occasion. Their lack of decisive, focused and coordinated response to both shocks, experts say, is hampering efforts to put the economy on the path of sustainable recovery post-COVID-19, writes Assistant Editor CHIKODI OKEREOCHA.

    A window of opportunity has once again opened for Nigeria to build a well-diversified, inclusive and globally competitive economy. Despite inflicting incalculable economic and financial damages on the global economy, including Nigeria, the double shock of the Covid-19 pandemic and the crash in the oil price are seen as a fresh impetus for Nigeria to look inwards and reverse the economy’s dependence on revenue from oil and gas via diversification.

    Will Nigeria seize the opportunity presented by the crisis to rev the engine of economic diversification? Will the Federal and State Governments, working with the private sector and development institutions articulate the necessary fiscal and monetary policy responses to the crisis? Will they muster the political will to rise to the challenge and turn to other high growth sectors such as agriculture and manufacturing?

    More importantly, what are the plans by the Federal and State Governments to halt the economy’s impending slide into a second recession in four years and hopefully, position Africa’s largest and most populous economy for inclusive and sustainable recovery post-COVID-19? Will they fail again to match words with action with regards to diversification the same way they did during and after the 2016/2017 economic recession?

    While these are some of the questions agitating the minds of development experts and other critical stakeholders as Nigeria grapples with the devastating impacts of the COVID-19 pandemic and the slump in oil price, the perceived lack of a proactive approach from most of the 36 state governor to repositioning their respective state economies for sustainable recovery post-COVID-19 has become a cause for serious concern.

    At a time fiscal and monetary authorities across the world, particularly those in oil-dependent economies like Nigeria, are being urged to intensify efforts at identifying big, bold and decisive actions to deal with the economic fallout from the coronavirus outbreak and the fall in oil price, the state governors in Nigeria appear to have gone AWOL.

    Despite also being at the receiving end of the financial woes caused by a shrinking allocation from the Federation Account, Nigerians are yet to see any decisive response or proactive approach from most of the governors to weather the storm, let alone articulate any plans to harness the bountiful natural resources in their domains to diversify their economies and by extension, the national economy.

    Indeed, since February 27 when the rampaging COVID-19 pandemic entered Nigeria’s shores, compounded by the unprecedented crash in oil price, disbursements to the three tiers of government by the Federation Account and Allocation Committee (FAAC) have been on a steady decline.

    For instance, Policy Partner and West Africa Tax Leader for PricewaterhouseCoopers (PwC) Nigeria, Taiwo Oyedele, pointed out that the country’s projected N888.5 billion monthly FAAC disbursement declined to N716.3 billion in January and N647.4 billion in February 2020.

    The multinational professional services company’s tax expert, who spoke at PwC Nigeria’s Webinar with the theme, “COVID-19: Economic Implication and Policy Responses” held on April 8, 2020, added that the figure is expected to decline below N400 billion over the next 3-6 months.

    According to Oyedele, Nigeria has pre-existing fiscal challenges only compounded by the Covid-19 pandemic. He listed some of them to include very low tax to Gross Domestic Product (GDP) ratio of less than six per cent, high debt service to revenue ratio, and low level of tax compliance, among others.

    He also stated that although the budget showed huge deficits and low revenue expectation, states have even bigger budget deficits caused by very low Internally Generated Revenue (IGR) across the country; large informal sector and multiple taxations that makes tax collection difficult; poor accountability that dampens tax morale hence the high level of evasion

    The PwC tax leader also said the huge fiscal gap at the state level will be compounded by the implementation of the N30, 000 new minimum wage and the COVID-19 pandemic, adding that the local governments are also as fiscally challenged if not worse.

    Finance Minister Mrs. Zainab Ahmed brought the reality of the decline in disbursements to the three tiers of government caused by heavy revenue losses and its implications nearer home. She said, for instance, that states expecting to share N3.3 trillion this year will not have more than N2.1 trillion.

    Similarly, local governments, which were projected to share N2.5 trillion, will not get more than N1.5 trillion from the Federation Account. Also, the Federal Government’s share, which should have been

    N4.8 trillion will now be N2.4 trillion, which is 50 per cent of the expected accruals.

    The consequences of reduced inflow are obvious and scary. For instance, the minister, who spoke at a recent event in Abuja, to discussed Nigeria’s response to the fall in oil prices and the COVID-19 pandemic, said many states may be unable to meet their statutory obligations, including payment of workers’ salaries.

    It is easy to see why the crisis is profound and far-reaching. Nigeria relies on the export of crude oil as its primary source of revenue.

    Oil currently accounts for more than 50 per cent of government revenue and about 85 per cent of foreign exchange earnings. But the price of crude oil has crashed, throwing the country into fiscal confusion.

    The dramatic dip in oil price came as demand for oil reduced significantly as a result of the outbreak of the Covid-19 pandemic.

    China, the epicentre of the deadly bug, is the world’s second-largest consumer of oil. Its demand for oil alone has reduced by 20 per cent. The spread of the virus dampened demand from China and other European refiners.

    However, the crash in oil price is not entirely caused by the pandemic. Crude oil has been trading below Nigeria’s budget benchmark of $57 per barrel in the international market due to drastic cut in global oil consumption, compounded by the on-going price war between Saudi Arabia and Russia.

    Collapsing fiscal buffers

    Oil revenue is also the major driver of accretion to the foreign reserves and the Excess Crude Account (ECA). However, both fiscal buffers have depleted.

    For instance, the external reserves dropped from $38.59 billion on December 31, 2019, to $35.26 billion as of March 30, 2020. This represents an 8.6 per cent decrease, according to statistics from the Central Bank of Nigeria (CBN).

    Also, the balance in the ECA, which stood at $325 million as at the end of 2019, has depleted to as low as $71.8 million as of March 2, 2020.

    Already, the obvious implications of the low accretion to these fiscal buffers have started manifesting in the form of weakening of investors’ confidence and generation of speculative pressures on the currency.

    Other possible implications include likely depreciation of the naira exchange rate, heightened inflationary pressures on the back of currency weakening, increase in production and operating costs for businesses, and weakening of purchasing power with adverse implications for the welfare of the citizens.

    For Nigeria, it was disaster forewarned. The belief is that the double shock of the crash in oil price and the movement restrictions and other containment measures to stop the spread of the pandemic would not have been this devastating if successive administration had made good their promises to diversify the economy.

    But as luck may have it, the current crisis has handed Nigeria another opportunity to address her age-long vulnerability to global oil price via diversification. However, while the Federal Government has taken steps to reset the economy post-COVID-19, the state governors have failed to match or complement the efforts of the government at the centre.

    Why have the governors failed to deploy additional measures to shield their respective economies from the current headwinds? For the Registrar/CEO, The Institute of Business Development, Dr. Paul Ikele, the governors’ lack of seriousness in taking decisive and coordinated action to nurse their respective economies to recovery stemmed from the lack of cohesion amongst them.

    “They (governors) don’t relate with each other; there is also no cohesion between the States and the Federal Government, Ikele told The Nation, adding that the absence of a bold and focused state-level response to shielding the national and state economies from the impacts of the crisis was also traceable to corruption and in-fighting among the governors.

    The Institute’s boss was emphatic that the current crisis is a call for Nigeria to look inwards and take advantage of her rich human and natural resources to reset her economy. “We have the human capital and resources. Let us retool our skillset to see where we have a comparative and competitive advantage. Our mono-economy is no longer sustainable,” he said.

    Dr. Ikele while pointing out that there are alternatives to oil, insisted that the time has come for Nigeria to return to the good old days when manufacturing, agriculture and agro-allied industries were the economy’s mainstays. He recalled, for instance, that before the discovery of crude oil, palm oil, cocoa, textiles and groundnuts, among others, were major export products.

    A Senior Lecturer in Strategy, Finance and Risk Management, Lagos Business School, Dr. Franklin Nnaemeka Ngwu, also lamented the “unserious disposition of most of our governors,” describing it as “discouraging.”

    He said, for instance, that in a well-governed environment, an informed and skilled team of experts should have been set up by each state governor to strategize and plan on how to effectively manage the COVID 19 crisis.

    “We should have seen and read properly thought and detailed COVID 19 policy paper of every state in Nigeria. Expectedly, the policy paper should contain a good understanding of COVID 19 and robust examinations of the health and socio-economic impacts on our respective states based on identified scenarios,” Ngwu said.

    The university lecturer also pointed out that while the COVID-19 pandemic is primarily a health challenge, it is important to appreciate the fact that its socio-economic impacts might be higher than the health consequences,” he said.

    Dr. Ngwu, who is also Member, Expert Network, World Economic Forum, said even with two governors testing positive for coronavirus, other governors are still behaving as if the COVID 19 crisis is a Federal Government problem.

    “It’s as if they (governors) are oblivious of what to do. All their actions so far have been very reactive with no detailed examination of the health and socio-economic implications to their states,” he urged.

    Fed Govt leads the charge

    The Federal Government is at the forefront of the efforts to mitigate the devastating impact of the double assault on the economy by the outbreak of the COVID-19 pandemic and the crash in crude oil piece, having rolled out a number of fiscal and monetary policy interventions.

    Crisis reinforces the need for diversification

    According to experts, oil & gas jobs account for less than one per cent of total employment and the young population can no longer be absorbed by the sector. They, therefore, noted that apart from the need to insulate the economy from the risk of being vulnerable to a single commodity, job creation is another core reason why Nigeria must genuinely pursue In this regard, the real sector has been identified as one of the priority sectors that Nigeria should target for diversification, apparently because of its job creation potential and dominant transmission link to the overall economy.

    While the Federal Government appears determined to ward off another round of recession and also reposition the economy post-COVIOD-19, experts say that its efforts will continue to lack steam unless the state governors demonstrate enough commitment to the course.

  • What will Rohr bring to the Super Eagles?

    What will Rohr bring to the Super Eagles?

    Gernot Rohr is working his way to become the longest serving foreign coach to handle the Super Eagles after he was given a fresh two-year contract extension. Rohr has been in charge of the Super Eagles since August 2016 and he qualified the team for the Russia 2018 FIFA World Cup and the 2019 Africa Cup of Nations (AFCON) in Egypt where Nigeria finished third. Here OLALEKAN OKUSAN and TUNDE LIADI feel the pulse of coaches and football aficionados on what lies ahead of the German.

     

     

    THE speculations over the future of Gernot Rohr as the coach of Super Eagles was laid to rest on May 27, when the President of the Nigeria Football Federation (NFF) Amaju Pinnick announced formally that the federation has  extended  the contract of the German for another 60 months.

    Among the targets set for the former Bayern Munich defender include winning the 2021 AFCON as well as picking one of the available continental tickets for the 2022 World Cup in Qatar.

    In his first term as Super Eagles coach, Rohr qualified the Super Eagles for the Russia 2018 FIFA World Cup where they exited  in first round. He equally qualified the national team for the 2019 AFCON in Egypt with a third place finish. Aside, the German has been credited for assemblage of a youthful side dominated by Europe-based stars.

    Yet former Nigerian internationals and notable coaches believe Rohr who had previously coached the national teams of Burkina Faso, Gabon and Niger has a lot to do to lead the Super Eagles to their Nirvana.

    Former Super Eagles assistant coach, Fatai Amao lauded Rohr for finding and assembling youthful players that had brought back the quality synonymous with the Super Eagles.

    “Sincerely speaking, the first three years of coach Rohr was not bad; he qualified the team for the last World Cup, and went to the AFCON to win bronze and I think he can  improve on his last performance by going  further in the AFCON ,” begin Amao, the former coach of defunct First Bank of Lagos. “He should look inward to see what he can add to the team in terms of giving opportunities for players in our local leagues especially now that the clause had been included in his contract.

    “So players from the domestic league  should be given the opportunity because I believe we have good players but it is all about having the time, the dedication and the seriousness to really look at the local leagues sincerely and select talented players in our league,” Amao added.

    Similarly, Former Super Eagles striker Etim Esin welcomed the new deal offered Rohr: “I think it is a progress for us to keep the coach for continuity because it took coach Clemens Westerhof five years to build a team that won the AFCON in 1994.

    “ I love the idea of giving Rohr a new contract to ensure and  I must give  the NFF the  credit for this;  and I hope the coach can take a cue from what some of the indigenous coaches have done in  the past by  winning  the AFCON as well as making at least the  last 16 at the FIFA World Cup.

    “He must also start looking inward to select players from the local league for the national team because it is not only when a player is established that he can be invited to the Super Eagles.

    “If Westerhof could do it, there is nothing stopping Rohr from adopting similar system. This will surely help to discover talents from the local league that will become established stars,” Esin said.

    Speaking on his new mandate with the Super Eagles, Rohr who was blooded as player by 1998 FIFA World Cup-winning coach Frenchman Aime Jacquet, said he was not oblivious of the task ahead of him.

    “This is a special job because this is my team, I built it with my staff,” the former Niger and Gabon coach said Monday on local television. “It’s a very young team, but the mission is not finished yet, so we want to continue.

    “We all have to make sacrifices and I will be the first.”

    He said the target is to be champions of Africa again. The Super Eagles have won the Africa Cup of Nations three times – in 1980, 1994 and 2013:”Let’s qualify for (the Nations Cup) and then we want to win it. We have a good team; we’re now number three in Africa. When I arrived (in 2016), we were number 13; we have worked together for the past four years and I hope we can progress.”

    Towards this end, Ex-Super Eagles midfielder Mutiu Adepoju said Rohr should be allowed to pick his soldiers as he leads from the front, even as he vehemently kicked against the idea of foisting players on the coach.

    “I think Rohr need to focus on all areas of the game including the players’ welfare which is very vital to their performance,” noted Adepoju, a member of the 1994 AFCON-winning team. “In all the department of the game, he must find the right players from the defence line to the midfield and down to the attack; he needs to strengthen all these areas.”

    “We should allow the coach to pick players from where he knows he can get the best. I am not against him picking players from the local league but we must not insist that he must pick from there. But if he identifies good players from the local league, this is good but I believe he knows where he can get the best legs to form his team,” Adepoju cautioned.

    The former goalkeeper trainer of the Super Eagles, Ike Shorunmu affirmed that it was just normal for the NFF to extend his contract and thumbed up the NFF for impressing it upon Rohr to stay more in Nigeria just like Westerhof did in the 1990s which helped to develop the home-based players.

    “We cannot judge the coach from outside,” he said. “We have to be patient and try to get the whole content of the new target giving to him in the fresh contract.

    “If he agrees to the fresh terms given to him, it shows that he meant well for our football. It is a good thing because during the time of Clemens Westerhof he stayed in the country and was able to make use of the Nigerian league players too.

    “I’m one of the products of the league during Westerhof’s time and let’s wait and see how Rohr performs,” Shorunmu added.

    For Lobi Stars head coach, Gbenga Ogunbote and the President of the Nigerian Coaches Football Association, Isa Ladan Bosso they are both happy that the NFF has mandated Rohr to reside in the country and also help develop local league players.

    Ogunbote told NationSport that Nigerian league players would no longer be in any haste to leave for overseas clubs with the acceptance of Rohr to look inward and help develop them.

    “It is a good development that he was retained. I believe his employers were satisfied with what he did in his current contract that will soon elapse,” Ogunbote said. “I think anywhere you work, it is expected that you stay there and you will be used to the mode of operations of the place.

    “Since that has been missing for some time with previous handlers of the team and this has affected the steady rise of the domestic league players into the national team.

    “He needs sincere people that can help him realize his objectives. He should work with coaches with experience coaching in the league. He should see the clubs play not just once or twice to be able to assess the players. That is when I will be glad that such a clause was included in his contract,” the Ex-Gateway FC gaffer said.

    Bosso on his part posited that it is pertinent for Eagles coach to make domestic league players part of his team as this would add glamour to the league.

    “There is always a room for improvement and I believe the NFF looked at some of these areas before offering Gernot Rohr a fresh contract,” Bosso told NationSport.

    “Rohr is not a bad coach but the only problem he has is his inability to look inward and pick some of the players in the domestic league that can make up the Super Eagles.

    “By considering some of the league players for the national team, he would be adding glamour to the league. Players in the league will now know that when they do well they have the chance to play for the Eagles.

    “I appreciate the additional clauses put in his contract to help develop our league. If a coach is only interested in readymade players, it shows he is not a good coach.”

    Bosso also tasked Rohr to consider taking the Eagles beyond the second round of the 2022 World Cup in Qatar to really show that he has stamped his authority in charge of the Nigerian team.

    “Other things he must think about is not only taking us to the next World Cup which he did at Russia  2018; he must work on taking the Super Eagles  beyond the first round because he now has better understanding of the players,” Bosso added.

     

  • Bye, bye Majek Fashek

    Bye, bye Majek Fashek

    Ace reggae star Majek Fashek died on Tuesday ending a tortuous career and life. Tributes have been pouring in, writes Assistant Entertainment Editor GBENGA BADA

    Reggae star Majek Fashek joyfully sang “Majek Fashek in the New York” and the gifted musician died in a hospital in the American city on Monday around 5:45 pm. after a health crisis that lasted nine months— September 2019 till June 2020.

    A singer and multi-instrumentalist, Fashek introduced the world to a softer-edged style of reggae which he touted as ‘kpangolo music’ in 1988 on his debut album ‘Prisoner of Conscience’. His influences included Jimi Hendrix to Bob Marley and Fela Anikulapo Kuti.

    In an interview with E-Weekly on Silverbird Television, Majek acknowledged Bob Marley and Fela Anikulapo-Kuti as his sources of inspiration. “I was inspired by Bob Marley and Fela Anikulapo Kuti. I have the pain of Bob Marley, that was why Rita Marley and the family decided to help me when I had issues after my Interscope deal failed.”

    Majek was married to Rita Fashek, who shares the first name with Marley’s wife, Rita Marley. Majek repudiated the popular notion that he was into drugs.

    “I have never used drugs, cocaine, or what have you. These are mere concoctions of junk or drunken press in the United States of America. I have never used drugs in the U.S. or Nigeria,” he said in an interview with TV personality and host of Rubbin Minds, Ebuka Obi-Uchendu.

    However, he claimed to have spiritual attacks and problems. “I have been having spiritual attacks and that is an African thing. It’s spiritual,” he said.

    In 2008, Majek’s path crossed with that of filmmaker and record label owner, Charles Novia. The erudite filmmaker was quick to sign a deal to release and promote Majek’s last album ‘Little Patience’ after proper documentation from Coral Music, USA.

    “Majek was a legend, someone who influenced my life as a kid and somehow, fate brought me to him to release his album, ‘Little Patience’. I took it as an act of fate and gave it all my best with the record deal then. I feel privileged and honour to have worked with him,” he enthused.

    Novia added: “I spoke to Majek last three years ago. I think I saw him last in Abuja in 2017 on a flight and we had a little banter and shared some jokes. I think we spoke later on in the same year.”

    At the high point of his career, Majek maintained a coherent sense of lyric line and continuously drew out key phrases in an elaborate manner – sometimes repeating the same phrase multiple times until he climaxed into a sing-along.

    Majek polished his singing while with Jastix, a band he toured alongside fellow reggae group, The Mandators.

    “I would remember him for the good time we had. I managed him for five years and it’s a privilege. I tried to get him back on track and push him out there because for me I was managing the biggest act in Africa then even though he was quite a handful you know with everything going on in his life at the time but I feel honoured and privileged to have worked with him,” Novia said.

    Novia stressed that Majek was a very talented soul, who was also highly spiritual.

    “He was a very talented and soft soul. He was beautiful in and out. Majek was a beautiful soul. He had a soft side of him, he didn’t like to see people suffer so he would always want to help. On the streets, when he saw children begging for alms or hawking wares, he would feel pained and if he had any money, he would dash it out all. He was a free spirit and very spiritual. He could pray all day, he was very deep spiritually and sort of understood how to commune with God in such a way that some of us don’t know. I think he was a prophet.”

    Age doubts

    His exact age is a subject of controversy. There are talks that the late legendary singer died at the age of 57 while others insist that he was 61 at the time of death.

    Novia insisted: “Majek was born in 1962, so he was 58 years. He was 58 years not 61 or any other age.”

    His delayed biopic

    Novia said Majek delayed the biopic after giving the go-ahead for the commencement of the film.

    Novia said: “We were supposed to work on a biopic which he didn’t want again and he told me to hold on and which is uncanny because he had given all the rights but later he insisted that I should hold on till he’s dead. We were about to start shooting 10 years ago when he stopped it again.”

    He said he would shoot the film now that Majek is dead. “I’m still going to shoot that movie as a legacy or a biopic or a documentary on him for his legacy and his estate.”

    Between Edo and Osun

    Though his father was from Ilesha in Osun State, Majek identified more with his Benin roots. He was born in Benin City to an Edo mother and an Ilesha father.

    Top entertainers, dignitaries pay tributes

    Top Nigerian entertainers have been paying tribute to the reggae legend, Majek Fashek who died on Monday.

    Edo State Governor Godwin Obaseki said: “I mourn the death of quintessential, maverick musician and Edo son, Majek Fashek. Fashek, who took the world by storm with his enigmatic talent, remains one of the finest cultural icons of his age and would be remembered for his disarming craft and skill. Majek Fashek was born by an Edo mother, grew up in Benin City, and stood as a shining light for youths in the state to emulate. He remains a force to reckon with, serving as an inspiration to Benin boys and girls and many more people across races and tribes. He will remain in our hearts as one of those who defied the odds to reach global acclaim at a time no one gave him much of a chance. His skill shone brightly and the world could not but look his way and acknowledge his undeniable gift. He will be sorely missed.”

    Afrobeat musician Dede Mabiaku said: “It’s a sad loss but he has gone to rest. It will be recorded in the book of history that he came, he saw and he conquered.”

    For Nollywood star, Kate Henshaw said: “The sky looks misty and cloudy, looks like the rain’s gonna fall today. RIP Majek Fashek… I pray you finally rest well. Thank you for the great songs. Thank you for using your talent to bring smiles on our faces… Sun rè.”

    Star musician Eedris Abdulkareem said: “As a massive rainfall bids a teary farewell to the rainmaker. He was one of a kind, a uniquely gifted performer. He was the Eleywon who lyrically called out Naija’s Prisoners of Conscience. He was the Rainmaker who crooned and the heavens will release its mist. He was one of a kind, so handsome and humane Inside out.

    “He was and is still our own Majek Fashek, and yes, he was phenomenally electric, eccentric and unforgettably Magical! Trod on Dread, trod on Eleywon… You’re finally free to soar and perform with Jah’s Angelic Band.”

    Public Relations guru Ayeni Adekunle said he was saddened by the passing of reggae music legend. “Majekodunmi Fasheke was an extraordinary talent who blessed the world with a unique version of reggae music birthed by the infusion of special African rhythms and sounds that he named kpangolo. And the world fell in love with him. With his creative genius, remarkable stage presence, deep spirituality and commercial appeal, Majek Fashek redefined what it meant to be a globally recognized African music star. He broke all barriers and penetrated hearts and homes beyond the shores of the continent. Majek’s success in the late 80s and early 90s helped breathe new life into the local Nigerian music scene, and his works continue to inspire today’s generation of artistes and performers. He will forever be remembered not only for sending down the rain but also for his reign as leading cultural ambassador of Nigerian music, which he proudly introduced to millions of people around the world. While we mourn Majek Fashek’s passing and commiserate with his family on this loss, we continue to celebrate his remarkable life and the evergreen music he left us with.”

    Mike Odiong, Project Manager, Premier Music, described Majek as a legend.

    “When I was a kid I wanted to sing like Yvonne Maha and many other artists. Majek was the one that saw that singing thing in me at 14 years old. He did my Demo then at Tabansi recording in Ikeja. The following year I left for America.

    “He visited me here in New York and our friendship continued. He invited me to a show in Manhattan where he and Ras Kimono were opening for Lucky Dube, and that is how I found myself on stage dancing with Dube ( RIP, Dube). I was so proud of him and Kimono as the club was gyrating to his popular music, ‘ Send down the rain’. Majek Fashek continued to battle the demon that would eventually consume him. We tried to help him, but it was beyond our reach. Majek was the kindest person you will ever come across. A great singer and an innovator. He was a consummated creative artist, whose work will never be forgotten. I would have tagged his name and those who knew him here in New York if my main account was not suspended. My big bros, Majek Fashek. Rest in peace and may Jah Lord receive your soul. Amen,” Odiong said.

    Ace broadcaster Jimi Disu said Majek was a very special human being. “It’s unfortunate how he died. I remember in the heydays when we were doing the gong show at the fantasy night club where I was the general manager. He came and participated and he won hands down and that was where he broke out into the media because the show was covered by both print and electronic,” he said.

    Music star Skid Ikemefuna said: “He was a talented, God blessed musician. As he has left, my regret was that he would have done it better than he did. He would have helped other Nigerian musicians coming up. Along the line, we were able to identify drugs as destructive to musicians. Osadebe never took drugs, he didn’t smoke igbo. He continued playing till he died. That one big mistake Majek made. And once you get hooked on it, just forget it. Look at Michael Jackson, Whitney Houston. I have been managing and handling musicians for over 35 years. You will see good musicians, once they get into drugs, it’s all over. He was an icon that would have done a lot. The way he penetrated the international scene was only done by Fela. Fela’s music was different. ‘Send down the rain’ was done by the Jahstix. It was purely reggae. When he started his own, he added rock to it which was part of his influence. The second album he made with a Jazz keyboardist had a rock and a mellowed jazz influence. God bless him wherever he is, let God accept him. May he go to heaven for the joy he gave to people.”

     

    • Additional reports: Sam Anokam, Sampson Unamka, Adeniyi Adewoyin, and Olaitan Ganiu

  • ‘How telcos can rebuild Nigeria in wake of COVID-19’

    ‘How telcos can rebuild Nigeria in wake of COVID-19’

    By Chinaka Okoro

     

    EXPERTS have said telecommunications industry has the potential to rebuild Nigeria in the wake of the COVID-19 pandemic.

    ABI Research, global tech market advisory firm, in its new whitepaper, “Telcos as a National Growth Accelerator”, identified several strategies that governments can utilize to invest in stimulating growth by strengthening the Telco position.

    ABI Research Chief Research Officer Stuart Carlaw said: “It could be argued that telcos could play a pivotal role in countries being able to rebound from the financial and productivity shock coming from COVID-19.”

    ABI Research found that telcos have been invaluable in enabling some semblance of societal continuation during lockdowns due to COVID-19.

    “In a very tactical way, they have enabled governments to track, trace, and manage the spread of the virus, communicate effectively and directly with people, and keep supporting society in a virtual, but valuable way. Without the investment and operational diligence of many telcos, the impact of COVID-19 would have been far deeper and more profoundly felt in all economies.” Carlaw stated.

    For Olusola Teniola, the president, Association of Telecommunications Companies of Nigeria (ATCON), the biggest recovery for Nigeria will be by the careful and full implementation of all recommendations in the Nigerian National Broadband Plan 2020-25.

    “Secondly, for there to be an immediate impact, government needs to kickstart the e-Gov digital migration, which means the immediate development of e-systems in all the MDAs and web-portals in different languages (Yoruba, Igbo, Hausa as a minimum) with voice assistance for the physically challenged. This will refocus and redeploy government spending on creating jobs on the supply side for the youth and demand from the citizens interacting with the systems to fulfil different needs.” He added.

    According to him, underpinning all this is the massive employment and retraining of our citizens to become more productive whether from home, office or in business centers in malls.

    Also, Mohammed Rudman, managing director, Internet Exchange Point of Nigeria (IXPN) said telcos could aid the recovery efforts through cost effective innovative data bundle for young entrepreneurs as well as lower bandwidth cost that will offer more data at lower cost.

    “Telcos should ensure that their traffic is localised, that will help to reduce cost for them,” he added.

    Nodding in agreement, Muyiwa Ogungboye, managing director / chief executive officer, eStream Networks, said that Nigerians now appreciate telecommunications service as important in the economy with the lockdown.

    He urged telcos to improve on the quality of service and ensure robust network that will accommodate new discovery of the new normal to be driven by ICT.

    Carlaw said: “They (telcos) will be key in enabling a new digital society. Beyond the obvious conclusions that we are likely to see, including more remote working, more virtual meetings, and more virtual teams (all of which will be enabled thanks to the connectivity supplied by telcos), a raft of new solutions could accelerate GDP growth and all will require a robust level of support from the telco community.”

  • Calamity at Lagos farm

    Calamity at Lagos farm

    • Swine flu kills 145,000 pigs valued at N4.9bn

    • 3 farmers die of shock, others hospitalised

    • 13,000 workers risk job loss, says union president

    Innocent DURU

     

    An outbreak of swine flu in a Lagos pig farm reputed as the largest in West Africa has caused the death of no fewer than 145,000 pigs whose monetary value is estimated at N4.9 billion.

    Located in Oke-Aro part of the city, the farm was a beehive of activities with thousands of workers and business men and women who thronged it daily.

    But that was before tragedy struck with an outbreak of the swine flu that killed the pigs in thousands and rendered the farm virtually desolate.

    Worse still, there was no sign that the tragedy was about to abate when our correspondent visited the farm during the week.

    Some of the affected farmers were said to have died of shock while some others were being hospitalised, having collapsed with thoughts of how to repay the loans they took to expand their businesses.

    Fears are rife that more farmers may fall victim as the virus continues to sweep through what is left of the farm.

    One of the affected farmers is Cordelia Osimeha, a single mother who at the beginning of the year decided to expand her business and take care of other pressing family needs.

    Towards this end, she spent a lot of money fattening her pigs in the hope that she would sell them to pay her children’s  fees in the university. Sometime in April, however, a virulent attack ravaged the entire farm, killing 60 of the pigs she had hoped to sell.

    The single mother said: “I was raising the animals in the hope of selling some of them to pay my children’s school fees, but they all died.

    “As a single mother, I am psychologically and emotionally affected.  To be honest, the development has seriously affected my children. I learnt that they would be going back to school in June.

    “My children are in the university and it is from this business that  I have been training them. It is through this pig business that I am doing everything in my life. I don’t have any other business.

    “What kind of business can I do outside this? I told you it is a very good business. I know that the downfall of a man is not the end of his life.

    “It is a business you will enjoy if you have money, because they eat a lot and their drugs are very expensive. If you go to our farm now, the whole place is desolate. The farmers are crying as customers who are coming to buy pigs are all returning home empty-handed.”

    Asked how long she has been in the business,  Cordelia said:  “I have been in this business for five years.  The business  had been moving very well since I started it after leaving my job.

    “The swine fever got to my pen in April. I have lost 60 pigs. I have some others left and I am hoping for the best.

     

    The Genesis

    Cordelia recalled that when the problem started, they all thought it was the usual kind of sickness. When they have foot rot, we do give them injections, and once we did that, they would be well.

    “But the way this one came was different. In the morning, you will see them eating well but by evening time, you will see them lying down.  Once that happens, the next thing is death.

    “The problem has no medication at all. We have used all manner of medications, including native ones, all to no avail. The government should come tom our aid. We need grants, not loans. “There is no way we can continue if the government does not assist us.”

    Another woman farmer badly hit by the problem is Mosunmola Akinyemi who claimed to have lost 250 of her animals worth about N7 million.

    She looked devastated as she shared her experience with our correspondent.

    “I have lost well over 250 animals, because I have a big pen,” she said.

    “I have lost over N7 million. It is devastating seeing animals worth between N80,000 and N130,000 dropping dead. We also have to bury the dead animals.

    “The incident has devastated my financial position greatly in the sense that I am not able to fend for the family anymore.

    “Now that the devastation has come and upset my whole plan, it is only by the grace of the Almighty Father that one is surviving.

    “The shock is too much to bear.  Some farmers have collapsed and are in the hospital while some have died because a lot of money has gone down the drain.

    “They nurtured the animals from birth, and at the point of selling them, they are dying.  It is very devastating.

    “Many pens have been locked up because there are no more animals in them.”

    She reckons that the business is highly profitable, saying: “I have being in piggery business for well over 15 years. Funds from my piggery and poultry business are all I have been using to provide for my household.

    “It was a very profitable business.  Our customers come from Warri, Badagry, Cotonou and so on.  They buy the animals and take them to their destinations to slaughter.”

     

    One flu too many

    Akinyemi recalled that it is not the first time an outbreak of swine flu would occur in the farm.

    She said: “It had occurred twice before I came here. This time around, the strain of the virus is very virulent so it kills them outright.

    “In the past, we had a survival ratio of 50 per cent. But this time around, once they get infected, they stop eating or drinking water. Consequently, they emaciate and die.

    “We are helpless as the disease has defied all medication and vaccination.

    “There is nothing that you can think of that is working for them.  We are helpless as we watch our investments go down the drain by the day.”

    It was also a sorrowful tale from Patience Oshodi whose farm got infected on April 11.  From being a contributor to the upkeep of her family, the embattled farmer said she was now totally dependent on her husband.

    She said: “I have been involved in pig farming since 2016. I started experiencing swine fever in my pen in April 11. That was when I experienced the first death.

    “I have lost more than 180 pigs worth about N5.1 million. On a particular day, I lost seven of them. On another day, I lost five, and so on. Everything was gone in a space of three weeks.

    “I feel very bad when I see this.  It is very discouraging but the Bible said we should encourage ourselves and move on.

    “We still have some that have not died and we are battling to save those ones. Immediately we notice a dead pig, we quickly move it out in order to save the remaining ones, although the challenge does not seem to have a cure.

    “We only sanitise and wash the room with disinfectant. My contribution on the home front has suffered. I don’t have money to spend so my assistance at home has reduced. It is my husband who now gives me money if I have to come to the farm.

    “The last time I bought feeds for the surviving animals, it was my husband who had to give me money.”

    Lamenting the complications the lockdown the lockdown has added to their plight, Oshodi said: “If there was no lockdown, buyers would have come to select the ones they wanted to buy. But the lockdown made it impossible for buyers to come to the farm.  They are being harassed by security agents even though the government said farm produce can move.

    “When they consider the cost of coming, the harassment and other things, they decide not to come. That was what affected the movement of the animals. Otherwise, they would have being bought before the incident.”

     

    We’ve lost three farmers, 145,000 pigs—Union leader

    President of Lagos State Pig Farm, Oke Aro, Pastor Adewale Oluwalana, was a pitiable sight as farm attendants rushed to disrupt his conversation with our correspondent with the one of his fattest pigs had just died.

    He rushed to the scene and returned with a sober mien. Unconsciously, he robbed his hand on his head as if trying to console himself before he went down memory lane.

    He said: “I have been into piggery for the past 12 years. Swine fever first occurred in 1998.  Being the first time, we lost a lot of animals.  The fever came back in 2005 but we were able to use the experience of 1998 to curtail it, hence the effect was not as severe as that of 1998.

    “In 2010, the problem reared its head and we also managed it. The effect in 2010 was very minimal.  But we are unable to curtail this one because of the effect of COVID 19 lockdown.

    “The lockdown made it impossible for most of the buyers that were supposed to come and evacuate the uninfected ones. The infected animals went on to infect the healthy ones because of the glut.  That is why we suffered such a huge loss.

    “About 145,000 animals have been lost in this farm.  If we quantify the loss in monetary terms, we are talking of about N4.9 billion.  Some of our members are on loans of N5 million, N10 million, N15 million, N20 million and so on.

    “Because of this huge loss, we have lost some of our members.  Some are hospitalised as we speak. The shock of how they would pay back their loans made us to lose valuable farmers.

    “This is why we are calling for assistance.  We have two sections of the market: the old site and the new site. In our section here, we have lost three farmers already. I don’t know how many in the other section.”

    Asked if the association is looking at getting psychologists to counsel the farmers to avoid further casualties, the president said: “The only grammar our people understand now is how they will recover the loss.

    “We are talking to our members to calm them down, but the fact is they want evidence that tomorrow will be better, and the only way out is for government and kind hearted people to come and assist us.

    “If the banks that gave loans to our members don’t come after them immediately, how would they even pay?  Calming down is not the issue. How would they pay back the loans?  The banks can only stop the interests but they will still have to pay.

    “Unfortunately, there is no business they can do now to pay back.  We lost 80 per cent of our animals, so we only have 20 per cent left. Can the 20 per cent pay back the loans?  There are farmers who have nothing left in their pens.

    “Only a few farmers have animals left in their pens, and they are not even sure that those ones will survive the challenge at hand.

    We thank the Lagos State Government, especially the Ministry of Agric. When the problem started, they sent some veterinary doctors to assist us in fumigating the entire farm.  The Federal Ministry of Agric also sent vet doctors to fumigate the whole farm in order to calm the whole place.”

     

    Other victims

    The losses are not restricted to the farmers alone. A dealer in pig feeds, Mavins Udorji, said his business has nosedived since the virus entered the farm.

    Udorji said: “The business was very good before the outbreak of the flu. Business has been very dull since this problem started.

    “Most of the things we sell are locally produced. The producers are complaining and we the dealers are also complaining.  The virus has affected their products because of low sales on our own part.

    “The animals are not being fed because the farmers are not getting the money they need to purchase feeds.  Everybody is just stranded.

    “Some of the feeds I have on ground are getting spoilt. The PKC gets spoilt after one year because it is locally produced.  The cassava peel becomes over-fermented after two to three months and loses nutrient.

    “We are losing a lot as a result of COVID-19 and swine flu.  As a dealer, I am losing about N400,000 daily. Before now, a ton of first crush of PKC was sold for N50,000, second crush sold for between N38,000 and N40,000. I was selling about eight tons of the one of N50,000 and four tons of the second one daily.

    “We were compounding feeds for customers. This Oke Aro farm is the biggest in West Africa. People come from all over the country and outside to patronize us.  Now they are scared of coming because of swine fever.

    “The future of the business is bright if we get assistance. I am encouraged to continue in the business hearing what the government is saying about agriculture. Each time the President speaks, he makes reference to agriculture as the way to go.

     

    Farmers appeal for assistance

    Despite their huge setback, the farmers who spoke with our correspondent said they were willing to start all over again. Unfortunately, the capital they need to do so is not available as some of them are yet to pay up the loans they took earlier. They have, therefore, unanimously appealed to the government and philanthropists to come to their support.

    One of the farmers, Mosunmola Akinyemi, said: “We can only appeal to kind hearted Nigerians and the government to come to our aid.  Those of us that are still coming around are people who still have few animals left and hoping for the best. There is no vaccine for African swine fever. It is a viral infection that must run its course.

    “This is why we are speaking out, asking for grant or help because it is so discouraging and frustrating.  The Lagos State Ministry of Agriculture came and did periodical fumigation. They carried out tests on the animals to know what was actually wrong. They came out with names like African swine fever, swine flu, and foot and rot disease.

    “The first two are viral infections without cure. They have helped us tremendously, but we would appreciate if they can help us with funds to bounce back. This is the business we have always done and used to train our children. We hope we can have some interventions from private individuals and the government.”

  • Naira in ‘marginal’ recovery as speculators face N10b loss

    Naira in ‘marginal’ recovery as speculators face N10b loss

    The naira has for the first time in several weeks made marginal recoveries at the Investors’ and Exporters’ (I&E) Forex window and parallel market. The modest appreciation of the local currency followed Central Bank of Nigeria (CBN’s) and Association of Bureaux De Change Operators of Nigeria (ABCON)’s prediction of heavy losses for currency speculators heating the forex market. The ABCON estimates that currency speculators will lose at least N10 billion in the coming months if they continue betting with their capital against the naira, writes COLLINS NWEZE

     

    CURRENCY speculators are in the eye of the storm. After dragging the naira to its lowest position in decades and fueling rumours of further devaluation of the local currency, the Central Bank of Nigeria and Association of Bureaux De Operators of Nigeria (ABCON) are fighting back to restore the strength and integrity of the naira.

    The currency speculators make spurious demand for dollar with hope to make good returns from the rising gaps between official and parallel market rates. But the apex bank and ABCON are promising the illicit forex traders heavy losses in the coming months as the market gains more liquidity through CBN’s interventions and planned resumption of dollar sales to Bureaux De Change (BDCs). The BDCs were temporary excused from the market following the economic lockdown and need to protect their members from being infected by the coronavirus.

    The naira on Friday appreciated to N385.94 at the Investors and Exporters (I&E) window, which was N0.56 against the dollar when compared to the N386.50 to a dollar that is traded on Thursday. At the parallel market, the naira was exchanging at N460 to the dollar after gaining N1 from N461 to a dollar it exchanged early last week. The local currency has also remained stable at the official market where it is exchanged at N360 to a dollar and has remained at that rate after marginal devaluation in March.

    The marginal recoveries across different platforms and stability seen in the market came after the CBN Governor, Godwin Emefiele advised businesses and individuals to stop patronizing operators in the parallel market because they are heating the foreign exchange market.

    ABCON President Aminu Gwadabe warned the currency speculators about the looming danger for their trade if they refuse to retrace their steps.

    He predicted that they would incur losses estimated at over N 10 billion in the next few months as the CBN prepares for BDCs return to the forex market after nearly six weeks of absence due to the Coronavirus pandemic and need to protect operators.

    He said with over 5,000 BDCs spread across the country receiving weekly allocations for sale to the retail end of the market, and rising accretion to the foreign reserves to over $37 billion, the naira’s future looks bright despite challenges posed by the currency speculators.

    Reopening Guidelines for BDCs

    Gwadabe said ABCON is issuing their reopening guidelines to all its members nationwide to include onboarding on the queuing crowd ticketing management application by all members known as ABCON 360° QSM portal with over 80 per cent members registered nationwide so far.

    “We are also updating all regulatory obligations during the lockdown, fumigation of members offices/markets, distribution of the second phase of face mask nationwide to our members. There is also the provision of wash hand basins, sanitisers at our distributions centres while members are to explore school fees, mortgage, subscription payments as one of their allowable scopes during post-COVID-19,” he said.

    Kazeem Ibrahim, a forex speculator, said he would henceforth watch the market more carefully before committing funds.

    He said that following the gradual easing of the COVID-19 lockdown both globally and in Nigeria, the CBN resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay schools fees and SMEs wishing to make essential imports needed to revamp economic activities across the country. That move, he added boosted dollar liquidity.

    Ibrahim said the planned return of BDCs to the market means fewer people will be willing to buy from the unofficial markets, and that is likely to strengthen the naira.

    CBN’s Message to Parallel Market Patronizers

    Emefiele has warned domestic and foreign investors against patronising the unofficial market, saying it was helping to overheat that market.

    Dollar sales have since resumed following a phased easing of the lockdown but foreign investor currency demand is yet to be met, analysts say.

    Emefiele has warned firms and individuals against patronising the parallel market popularly called the black market.

    He warned them to stop using black markets for foreign currency exchange, adding that patronising the parallel market is helping to overheat the foreign exchange market.

    “I know some of you are involved, stop now. By going to the parallel market, you are helping to overheat that market. Not only that, but you will also lose money because you would have bought it at a price that is not realistic. I can tell you that you are going to lose money. But we have seen your account already. We are appealing to you, please stop and let’s do what is right, what is legal, so that Nigeria can continue to be a good place for you and to live in,” Emefiele appealed to businesses patronising parallel market.

    Emefiele even went a step further appealing to industrialists patronising the parallel market to stop such practices in the interest of the economy and for the sustainability of their businesses, failure which they will equally, record the same huge losses like the currency speculators.

    Role of BDCs in Exchange Rate Stability

    Like in 2016 currency crisis, the market got a major relief after the BDCs’ began getting dollar allocations from the CBN. That same scenario will soon play out as the CBN team and ABCON Management begins to count days for the BDCs return to the market.

    The CBN has come to realize that BDC operators can be the difference between naira recovery and depreciation during volatile and uncertain times. That’s especially true now that the local currency has come under intense pressure that is purely driven by speculative demand for the dollar. The BDCs are essentially operators that help get dollars to the end-users no matter where they are and have for decades proven time and time again their relevance in stabilizing the naira.

    According to Gwadabe, with the CBN’s planned lifting of a moratorium on dollar sales to BDCs, reopening of the airports for air travels, global ease on the restriction of movement are positive indications that dollar flows to the economy will soon improve.

    He said: “The return of over 5,000 BDCs to the forex market will add great strength to the Naira and lead to major capital losses for forex speculators. It happened in 2016 and will happen again in 2020. The return of the BDCs will immediately boost Naira recovery and put the enemies of the economy to shame. We are committed to the CBN’s exchange rate stability and will take all necessary steps within set rules and regulations to keep the naira stable,” he assured.

    Gwadabe said the return of BDCs to the forex market will help chase away speculators, curb rising inflation, boost productivity and employment, enhance price discovery, enhance market transparency and competitiveness.

    Positive Indicators for Naira Recovery

    Aside from positive developments in the global economy, the CBN has taken action to address the risks facing the naira, which will lead to rapid recovery for the local currency.

    For instance, the recovery in the Chinese manufacturing sector and opening of the Asian tiger’s economy after months of closure due to the coronavirus pandemic have raised the country’s crude oil demand, many of which will be bought from Nigeria. Such purchases will boost Nigeria’s dollar earnings.

    Besides, Nigeria is one of the few lucky countries that have secured an emergency $3.4 billion loan from the International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI).

    IMF Managing Director, Kristalina Georgieva, said the fund will not only support Nigeria’s financial sector and address balance of payment hitches but has boosted foreign reserves and financing to the budget for targeted and temporary spending increases.

    Nigeria’s foreign reserves have reached over $37 billion, which represents enough buffers for the CBN to deal with any act of illegal economic behaviour like hoarding, speculation, conversion of local assets among other illicit financial activities.

    Gwadabe also added that the OPEC measures on sustainable price stability are commendable as many governments across the world have agreed to oil production adjustment targets and continued collaboration with all their partners, a move that will benefit Nigeria.

    He said the CBN has also officially reviewed the naira exchange rate to N380 to a dollar. Aside devaluing the naira, the apex bank also adopted a unified exchange rate, and pushed the official rate of the naira to N376 to a dollar for International Money Transfer Operators rate to banks; N377 to a dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378, all aimed at attracting Foreign Portfolio Investment and strengthening the local currency. The BDC operators are expected to buy dollar from the CBN at N378 per dollar.

    Gwadabe said the naira rate review and assurances by the CBN Governor, Godwin Emefiele to foreign investors that want to repatriate their funds from the country are positive for the naira continued recovery.

    African Currencies’ Performances

    ABCON boss Gwadabe said the impact of the Coronavirus pandemic on the naira was not as bad as seen in other African countries’ currencies.

    Amid huge capital flow reversal driven by risk-off sentiment, currency rates of African countries show that the South African rand is the worst hit, down 20.6 per cent year-to-date.

    This is followed by the Angolan Kwanza which has depreciated by 16.1 per cent, Mauritius Rupee (-8.8 per cent), Nigerian Naira (-6.6 per cent) and Kenyan Shilling (-5.3 per cent) followed in that order.

    Others include the Tunisian Dinar (-3.8 per cent), Morocco’s Dirham (-2.7 per cent) and the West African Monetary Union’s CFA franc (-2.3 per cent ). Notably, the Egyptian Pound, up 1.3 per cent year-to-date, remains the best performer across the region.

    Gwadabe explained that while an adjustment of the Nigerian naira from N360/$ to N385/$ broadly reflects the 6.6 per cent weakness observed in the official market, it must be noted that currency depreciation at the unofficial market is much deeper, currently at N461/$.

    But looking ahead, the outlook for the naira is expected to remain relatively strong on the back of growing foreign reserves at over $37 billion, increasing global demand for crude oil, rising commodity prices and rising global trade.

    Commitment to Exchange Rate Stability

    Gwadabe disclosed that ABCON Executive Council under his leadership will continue to promote transparency and efficient market dealings while commending the CBN Management for its progressive policies and achieving stable exchange rate that aligns with its price stability.

    He said the CBN has been able to create a people-focused Central Bank promoting macro-economic objectives such as low inflation and a stable exchange rate, along with a focus on promoting inclusive growth and reducing unemployment in the country.

    Gwadabe said the BDCs remain at the centre of economic development and have the capacity to attract needed capital for the development of the Nigerian economy. He said that Nigerian BDCs, like their counterparts in other emerging or developing economies, have what it takes to deepen the forex market through the deployment of technology and adhering to global best practices.

  • How the booming demand for Zoom is changing our virtual world

    How the booming demand for Zoom is changing our virtual world

    By Ehi Braimah

     

    IT is Saturday morning (May 23, 2020) and I have just finished using Zoom, the hottest app in town, to participate in a training session facilitated by Olumide Ajomale; a coach, mentor, management consultant and fellow parishioner of Archbishop Vining Memorial Church Cathedral (AVMCC), GRA, Ikeja, Lagos. The training which focused on how you can creatively transform your business through innovation was held under the auspices of the Economic Empowerment Programme (EEP) of the church.

    The world is changing and we must also adapt to changes taking place – new ways of doing businesses and engagement are emerging including the use of Zoom application for video conferencing and teleconferencing. “Creativity is thinking up new things; innovation is doing new things,” asserted Theodore Levitt (1925 – 2006). Levitt was an American economist and professor at Harvard Business School whom Olumide cited during his presentation to fire up the imagination of participants and get their creative juices flowing. If we paraphrase Levitt, innovation is the implementation of a creative idea – it could be improvement on an existing idea or the development of a brand new idea.

    When COVID-19 pandemic upended the world on a scale never seen in over 100 years, most businesses have been pivoting in new directions in search of new opportunities enabled by technology. Necessity, we’re told, is the mother of all inventions. As a technology platform for virtual meetings, Zoom gained critical mass due to the global lockdown. Available statistics indicate that Zoom has added 2.2 million new users so far this year – less than five months —whereas in 2019, it added 1.19 million new users to its data base. The lockdown and compulsory isolation forced organisations to work with their clients and employees online through video conferencing and teleconferencing – everyone was working from home. It turned out to be a golden opportunity and great fortune for the founder and shareholders of Zoom. I cannot recall how many times I have used the Zoom app for different meetings since the coronavirus lockdown began but the good thing about our virtual world is that everyone – young and old – are becoming more techie. There are free online courses in digital marketing as we begin to learn new skills for a brand new world. WhatsApp and FaceTime video calls have also become popular and they are free; all you need is internet access through wi-fi or by purchasing a data bundle. Sending emails has replaced most of the work at the post office – is there anyone today without an email account?

    Suddenly, in the video conferencing category, Zoom is now clearly the leader and number one brand in the mind, overtaking Skype, Cisco Webex, FaceTime, Houseparty and Microsoft Teams. With the incredible surge in popularity, Zoom now records over 300 million users daily around the world compared to 10 million daily users pre-lockdown scenario. With a market cap of $48.8 billion as at May 2020 compared to a valuation of $46.2 billion of the world’s top airlines by revenue including Southwest Airlines, Delta, United, IAG, Lufthansa, American and Air France, Zoom – which went public in April 2019 — has changed the face of business meetings and global communications/engagements through video conferencing. Zoom is now one of the most downloaded apps on Google Play and App Store.

    Zoom is actually popular because of the free package embedded in the application, and it is easy to use but competitors are making moves to catch up. Google recently opened up their meeting platform for free which will make the number search engine brand in the world a major contender in the same category. Cisco Webex, another strong contender in the category, develops and sells web and video conferencing applications, and it is based in Milpitas, California, USA. Most of the leading tech brands are owned by American companies, making the United States the home of innovative technologies in the world.

    But there’s more to the use of video calling apps than doing business meetings: we have religious and social events, remote learning, family connections, and so on. When Bashorun Dele Momodu, the publisher of Ovation International, turned 60 recently, a “Zoom Party” was organised for him: family, friends and well-wishers — both at home and abroad — marked the birthday live with prayers, music and entertainment by using the Zoom app. The world is now truly a global village!

    In order to understand the Zoom app better, I scoured the internet and posed questions to my communications and ICT friends. “Zoom meetings are cloud based video conferencing applications used primarily by businesses to host meetings,” stated Toju Ogbe, a global PR strategist, based in the UK. “If anything, Zoom is a case of chance; it rode the wave of the global lockdown and led a trend that some might call ‘revolutionary’, but that assertion is debatable. Zoom offers free video conferencing with limited capabilities and COVID-19 made demand for their platform to sky rocket,” Ogbe explained. Expressing his opinion further, Ogbe noted that Skype is the biggest loser because they were way ahead and should have done what Zoom is doing today. “From my personal experience, Zoom works very well and it is easy to use. However, there are issues about its security, and in the enterprise space, Cisco Webex and Microsoft Teams may be more credible,” Ogbe concluded.

    In his own contribution, Adeyinka Adeosun, an ICT expert and graduate of computer science with economics from Obafemi Awolowo University, Ile-Ife, said Chams, a Nigerian company, pioneered video conferencing, teleconferencing and computer maintenance way back in 1992 in the country. “I was doing my industrial training at Chams at the time. The company also pioneered smart card technology, electronic purse, value card which is now today’s ATM card, PVC card and computer networking. Mr Demola Aladekomo, founder of Chams, introduced BVN to Nigerian banks,” recalls Adeosun. “Zoom meetings are quite popular in Nigeria just like Yahoo and Gmail accounts. Before now, we used Skype video calls more but that has changed with the advent of Zoom application. I have hosted many meetings using Zoom and participated in others including my Rotary Club’s weekly meetings,” Adeosun added.

    The security challenge Ogbe highlighted is a major drawback for Zoom in spite of its wide acceptance. The popularity notwithstanding, users are concerned about the vulnerability of the app and expert opinion suggests that Zoom must find ways of prioritizing user privacy and security over ease of use. It is essential users keep the apps of their desk tops and mobile devices up to date. However, from the security perspective, using Zoom on mobile devices such as iPad and Android phones may actually be a preferred option because they are constantly reviewed in the app store.

    Writing about the benefits and downsides of video calls in The Guardian, the British tabloid, Ammar Kalia said, “Video calls have become part of daily life since the pandemic hit, helping the locked down, especially elderly and disabled people, keep in touch and become more sociable; but there are downsides.” When psychologist Dr Doreen Dodgen-Magee spoke to Kalia, she said video calling is an essential but contentious part of our lives. “As social animals, we fail to thrive when we can’t have meaningful connections with others, so video calling is really important at that moment for helping us feel part of a community,” Dodgen-Magee observed.

    Continuing, the psychologist said: “Speaking over the video has its flaws; it is such a static way of connecting with people. We’re used to a full sensory experience, which is lost when we’re limited to a small square of someone’s face with audio delays. We also see our own faces, so there’s a constant sense of internal judgement on how we look and the distraction of where we should be looking.”

    Zoom Video Communications was founded in 2011 by Eric Yuan, a former Cisco Webex engineer. The company, based in San Jose, California, USA, provides video telephony and online chat services through cloud based peer-to-peer software platform and it is used for teleconferencing, telecommuting, distance learning and social interactions.

    Zoom was launched as software in 2013 – as recent as seven years ago. As a web based video conferencing application, Zoom can be used on desk top computers and mobile devices. Users can meet online with or without video and you can choose to record the sessions. You can hide your face without turning off your camera. Others can see you but you won’t be staring at yourself which takes care of the concern raised by psychologist Dodgen-Magee.

    The basic version of Zoom is free of charge for two users with unlimited time. However, the free version for up to 100 users will allow the meeting to last for only 40 minutes. The paid version starts from $14.99 (about N6,000) per month for each meeting host which can take up to 100 users, and a single meeting can last up to 24 hours; only the paid versions can be recorded. The meeting host is allowed to create personal meeting IDs for recurring Zoom meetings which can be recorded in the cloud or on users’ devices.

    FaceTime is a also a popular video calling app like Zoom but it is only enabled on Apple iOS device and Mac. However, Zoom works on nearly all the operating systems and the company has plans to allow for up to 1,000 participants to video chat together at the same time. This incremental innovation is expected because, with the upcoming challenge from strong competitors, especially Google, Zoom must raise its game and remain the dominant brand in the video conferencing/teleconferencing category.

     

    • Braimah is a public relations consultant and marketing strategist based in Lagos (ehi.braimah@brandimpact.ng)

  • UCTH’s place in Cross River’s COVID-19 tale

    UCTH’s place in Cross River’s COVID-19 tale

    Last January, Dr. Ikpeme Asanye Ikpeme, a Professor of Orthopaedic Surgery and University of Calabar Teaching Hospital, and the Cross River State government put in place plans to combat the Coronavirus pandemic. Correspondent NSA GILL reports.

     

    THE efforts of the management of the University of Calabar Teaching Hospital (UCTH) in assisting the Cross River State government to achieve proper response to the COVID-19 pandemic received a commendation from a seven-man team from the National Centre for Disease Control (NCDC).

    Commissioner for Health Dr. Betta Edu said the state government and the UCTH management in January drew out a plan to combat COVID-19.

    “We have worked closely with the management of UCTH as early as in January drawing out response approach to what is now a global pandemic. They brought out the expertise we needed. They made available the Isolation centre for proper setup. Cross River State Government has been supporting in our own little way.

    “We must thank the UCTH management because all the manpower which started the training process for health workers in the state came from the hospital. The Chief Medical Director (CMD) Prof. Ikpeme Asanye Ikpeme was very magnanimous allowing his capable staff to work hand in hand with us. He did not hesitate at any point in time in giving the needed permission for any staff that had to work with us in training the workforce we have been able to raise in response and preparedness to COVID-19 in Cross River State.

    “Beyond these, there is also support like using venues within the hospital and facilitating training. They come to our isolation centre to help in setting up and drawing up protocols. We commend the UCTH and the state government is very grateful for that. We will continue to work together and the state government will continue to support the UCTH in whichever way that is necessary within our capability. First, it is our own to serve our people before anyone else, as such we owe them that support as a government,” Edu said.

    The hospital, Prof. Ikpeme said, has the ability to conduct test for COVID-19 case if the needed software upgrade and machine cartridges are given to them by the National Centre for Disease Control (NCDC).

    His words: “We are prepared. We have a trained team, we have Isolation Centre, we have PPEs; we got facilities on the ground. We can support the cardiorespiratory system; we can support the renal system. Our dialysis is working, so we are prepared.

    “We told the team what we have. We have the Gyn-expert machine and all that is needed is to upgrade and provide cartridges. They know about that and they will take the message back. They have also seen our isolation centre. It’s a 4-bed centre that can easily be overwhelmed if case break. We need to expand the centre and have a place for staff to stay.”

    Ikpeme added that most of the seven cases that turned out negative were sent from the UCTH to the NCDC.

    The UCTH that now inspires confidence was as at April last year in distress. A visit to the hospital prior to April 16, 2019, depicted a hospital in deep distress. The environment was unkempt; utility services such as water and electricity supply was far-fetched. X-ray machines in the hospital were non-functional, services were outsourced to private establishments connected to top officials. The operation theatres and laboratory services were nothing to write home about. Drug supplies and pharmaceutical services were in a terrible state.

    When Prof. Ikpeme took over as the 8th CEO of the hospital, he had full knowledge of the challenges before him and seemed ready to hit the ground running,

    He called his management team and eventually the staff community and made a declaration saying: “Come with me on this journey. It will be tasking but exciting. There may yet be obstacles but we will overcome them. Above all, He (God) who called us has already equipped us.”

    •Prof. Ikpeme

    He went on: “There are those who believe we are down and cannot rise again. We must prove them wrong. We will do so by working hard, reporting early to work & sitting down to actually work, by eschewing corrupt practices, insisting that our environment is clean and tidy, leaving only at the close of work and generally being disciplined, committed and focused in the discharge of our duties.

    “We must respect each other and be professional in our dealings. We must respect the boundaries of our professionalism and co-operate to make each profession grow. To paraphrase Dr James Ene Henshaw, that great medical poet now gone beyond, ‘This is our chance’. The patient is our primary concern. We must be courteous, humane, and empathetic in dealing with him or her. He or she must henceforth leave UCTH with a sense of satisfaction and be our advertiser in the larger community”.

    He also appealed to the staff and stakeholders not to set booby traps for officeholders and not to sabotage the efforts of the new administration in any way.

    One year after, has he and his management team lived up to his promises? The majority answer in the affirmative. But the CMD says “It is work in progress”.

    There are many areas of intervention and notable differences, evident in the hospital. The clean and green environment is part of the aesthetic and Sanitation policy of Management. The Dental Clinic has been completely overhauled. The Ante-natal and Gynaecology clinic has been completely made over. So is the labour ward, completely restructured and renovated, and work is ongoing to create ten en-suite labour suite and two obstetric theatres. The hospital now has CCTV cover in some strategic places and departments, with plans for a hospital-wide expansion.

    To ensure that patients and visitors are properly guided, there is a manned SERVICOM DESK at the entrance of the Hospital which is available for patients and visitors to make inquiries. The SERVICOM Unit has also recently been re-jigged for further efficiency. Pay points have been increased to ten and a central Phlebotomy unit has been set up to provide phlebotomy services for out-patients. Power supply and water supply have improved and is enjoyed 24 hours in strategic departments.

    Efforts to clean up the hospital and create an aesthetically pleasing environment have received commendation by different visiting bodies such as FHI 360, Medical & Dental Council of Nigeria (MDCN) and the accreditation team of the faculty of Obstetrics and Gynaecology of the West African College of Surgeons.

    Critical improvement in UCTH is also evident in the Dialysis unit which has been completely renovated and refurbished to cater for infective and non-infective cases; the Theatre, the Intensive Care Unit, Radiology, Laboratory Departments, Endoscopy, Blood Bank and Pharmacy among others.

    Before the outbreak of Coronavirus across the globe, the management had concluded arrangement with the American-based VOOM Foundation to conduct the first open-heart surgery in the hospital this month. The arrangement still subsists and a new date will be set after the Coronavirus pandemic has been contained.

    UCTH with no doubts have experienced dramatic improvement in many areas in the last one year; there is power supply with 24 hours power in critical areas such as the Theatres, ICU, Radiology, Casualty wards and improvements in the water supply which is more stable than prior to April 2019.

    The power supply problem in the hospital had become endemic before the Prof. Ikpeme-led management team took over. Upon assumption of office, abandoned power generating plants in the hospital, one 500 KVA and another 515KVA were put back to functionality and new 500KVA generator was acquired to boost the alternative power source of the Hospital.

    In addition, efforts are continuing to engage the Port Harcourt Electricity Distribution Company for settlement of the huge debt left behind. The Drug Revolving Fund Account (DRF) is now fully functional.

    Security is not left out. The Hospital has enhanced lighting points and has installed CCTV cameras in strategic points to aid surveillance. Engagement with security agencies has helped beef-up security in the establishment.

    In the area of medical research and advancement, Prof. Ikpeme has revealed that the UCTH is currently working to develop and build upon the achievements of the hospital institute for tropical research through collaboration with the United States (US) Military to research on Malaria and Drug-resistant in the Tropics. “Both Clinical and field research is going on,” the CMD noted.

    Asked for a message to the public going further, he said: “We recognise the state of the hospital in time past; we are a work in progress, striving very hard to meet the demands of our clients. We understand that we are the biggest health provider in Cross River State and we are thankful to the public for their confidence in our system in the last 12 months. We urge them to return; we have the best hands, the best brains, we have the biggest concentration of excellently trained manpower. We are creating environments with quality equipment that will ensure that we have excellent health care service delivered to them. I want to state that UCTH is back and back very strongly; we are here and we will be getting better. We are rising from the ashes.”

    The head of the department of SERVICOM in the hospital, Mr. Obo Obo, listed thirty-eight areas that have received commendable attention and intervention in UCTH in the last one year.

    Edu said: “I want to join my voice to that of the CMD who is an exceptional leader. He has brought a lot of change to this hospital. I say without equivocation since he came in, it has been a different hospital. I stay and the state and I know what has been going on and I can give the history of the hospital up until today. He has brought a lot of change, new spirit, new everything to this place and we believe that he will do more for the facility and the hospital as a whole. We will continue to support him as much as we can and we are confident of his support to us as well where needed.

    “We have a lot of humans resources in the UCTH that can be deployed to support lives, I think it is time for the Federal Government to massively invest in the University of Calabar Teaching Hospital. We can expend the Isolation centre on the hospital premises. There is a lot of space in front of it. We were going to do a kind of makeshift tent there before we were told by the NCDC that it is preferable to have a full building rather than having a tent and that is why we had to relocate to Adiabo.

    “We plead that more be done for the hospital, we believe whatever is done for them is done for Cross Riveriens, it’s done for Cross River State and the Governor of Cross River State will be very appreciative.”

  • INVESTIGATION: With just N1000, I “smuggled” foreign rice from Benin Republic to Nigeria despite government’s restrictions

    INVESTIGATION: With just N1000, I “smuggled” foreign rice from Benin Republic to Nigeria despite government’s restrictions

    In August 2019, the Nigerian Government led by President Muhammadu Buhari declared a partial land border closure in order to halt the importation of food among other goods. The smuggling of rice – Nigeria’s staple food – remains business as usual despite the restriction order by the president. The Nation’s Investigative journalist Gabriel Ogunjobi went undercover between March 12 and 17 to expose the schemes of smugglers operating across the border between Nigeria and Benin Republic.

    It was midday on March 12, Monday, popularly nicknamed ‘J-Boy’, a swift, street-smart motorcyclist flapped his cow-skinned, portable bag at the front of his motorcycle, ready to fire on.

    J-Boy was not just a good rider, but also a great accomplice with the Kogi-born Mohammed Muktar, who is adept in the business of smuggling foreign rice from Benin Republic to Nigeria.

    Street-smart Monday a.ka. ‘J-Boy’, a bike rider who makes a living as foreign rice carrier

    It should ordinarily be a difficult task to dare travel out of the country with no valid proof of identity but it is more herculean to smuggle bags of foreign rice under the nose of men of the Nigeria Police Force, the Nigerian Army, the Nigeria Customs Service and the Nigeria Security and Civil Defense Corps (NSCDC) – especially at this time when the borders are shut. But none of these security agents could stop Mohammed, a notorious smuggler, and his accomplices.

    So, when Mohammed gave J-Boy a nod to ride on, the latter took the cue at once. “No qualms,” he said, bravely and gravely.

    On his Bajaj motorcycle, he carried Mohammed and the reporter – and zoomed off, travelling the terrible roads that connect Towe de l’arrondissement (meaning ‘town’) in Benin Republic, from Nigeria – starting from Igan Alade road – Yewa North, Ogun State.

    An undercover expedition into the world of smugglers

    As we sped off on the crude terrain, I quickly expressed my anxiety about the dangerous journey we had just commenced. But my co-travellers, who knew how the system works told me to calm down, assuring me of safety and success in the journey.

    However, the smugglers had no idea that I was a journalist working under cover. I had earlier presented myself to Mohammed as a newbie, who would love to invest in the smuggling of foreign rice from Benin Republic to Nigeria. However, before putting my money on the line, I told him I needed to experience how smugglers outsmart Nigeria’s security agents. I needed to gauge the risk involved in the business into which I was venturing.

    Before finally crossing the Nigerian border to Benin Republic, we travelled through Igan Alade, one of the communities on the borderline of Ogun State and Towe, a neighbouring town at the French-speaking Republic of Benin – bypassing a police station at Igan Alade, an NSCDC Divisional Headquarters at Tata community, a Nigeria Customs Area Command at the Ijoun community, and at least seven checkpoints manned by different security agents.

    Throughout my round trip to observe the smuggling expedition, I noticed that none of the officers at any of these checkpoints – usually barricaded with bamboo across two sides of the roads – was particularly interested in stopping any smuggling activity.

    Instead, the officers greeted us with flashes of smiles and sometimes, hand-waves.

    To clear foreign rice out of Benin Republic only costs N200, Rice retailer claims

    As at 4:15 p.m., when we arrived at Towe, Coronavirus, the most ravaging pandemic of the century, was just beginning to take a toll on rice prices in Benin Republic.

    Before then, a dollar was exchanged for N360/366 at Bureau De Change market, but it suddenly rose to between N405 and N420 that morning. The naira crash immediately influenced the price of foreign rice.

    Twenty-four hours ago, a bag of rice was sold at N9,000 at any retailer’s outlet in Benin. It was already N10,200 on the morning of March 12.

    “Your currency has no market value in our country yet you have too many greedy officers on the road,” said Mme (Ms.) Ramantou Akiyemi, a rice retailer, to spite Nigeria’s currency value.

    A signpost in Benin Republic, near Towe

    A signpost in Benin Republic, near Towe

    “When you are going back, our officers will clear you with just N200 – and that’s all! – no matter the numbers of bags of rice you carry on a bike. But, on your land, the taxes are overbearing.”

    In a sudden plot-twist, Mohammed came up with a masterplan as this time around he was able to buy just about five bags.

    Smugglers’ mafia tactics

    “It isn’t worth it to waste any money on the road since it is just five bags I am now buying. Let’s make a booking today and come back to carry them,” Mohammed said, gradually unfolding how he intended to evade all securities without paying a dime.

    He would later reveal that his usual scale of rice smuggling ranges from five to ten bikes, noting that each bike would carry around 10 to 15 bags at once – depending on how strong the rider is to control the wheel. Paying bribes on the road doesn’t bug him, but, for just five bags, there is a smarter way to cut the cost.

    In the world of smugglers, four codified words are employed for communication – ‘settlement’, ‘booking’, ‘lead’ and ‘informant’. They typify how conveniently smugglers operate day in and out – before and after the federal government invoked a restrictive policy on borders.

    Rice smuggler on the run

    ‘Settlement’ is the bribe of N1,000 at every checkpoint minus the police’s. This is so because the policemen at Igan Alade junction are ‘booked’ before any trip. Customs officers and soldiers will only collect bribe when they catch traders with illegal goods. With the police, the rule is different. Smugglers must disclose their mission ahead of their journey. That’s why theirs is called ‘booking’.

    Four codes in rice smuggling

    Apart from the bribe-taking security agents, it is usually a lucky day for the likes of J-Boy who risk their lives to smuggle rice. So, their charge is not open for negotiation: it’s a flat rate of N2,500 per bag to anywhere in Igan Alade.

    Talk of the backbone machinery in smuggling, you think of the ‘Lead’. Through a hell-hole smuggling, the Lead runs ahead – like two miles – on his bike, looking unsuspecting but vigilant to a fault. He makes the settlements that will be required at each of the checkpoints. Also intermittently, he calls the actual carrier to keep track of their adventure or warn once he sights anyone parading suspiciously. The smugglers know their gangs and can easily spot one who does not belong to the clique. That enemy the Lead is looking out for is called ‘informant’.

    The fear of informants…

    As fearless as Mohammed appeared in countenance, he admitted that informants were his nightmare in the business.

    He cursed them anytime he mentioned them. They just parade bushes on the border, and make a call to the Customs patrol squad the moment a smuggler is sighted, he told the reporter.

    ‘They may see you mapping plans and just keep trailing you without raising suspicion. They are the unfortunate people in this work. They don’t want us to prosper and for that they will never prosper too. I fear them,” he quipped, dropping a missile of rebuke for his anonymous foes.

    FUN FACTS- Mohammed Muktar wore this very shirt for over three days. He is evasive to the securities but informant is his nightmare

    It can be a bad day for the informants because sometimes they risk being hacked down, as I heard from J-Boy in one of my interactions with the smugglers.

    “Sometimes, if we notice the same unfamiliar person keeps us on a bike, we can challenge him. On some tough days, we use charm and cutlass on them.”

    From that point onward, I made up my mind never to be mistaken for an informant. Such misfortune will certainly jeopardise my assignment, or endanger my life.

    How smugglers boycott security agents from Benin Republic to Igan Alade

    • N1,000 bribe to smuggle in five bags of foreign rice

    At dusk of Friday, March 13, in Igan Alade, the reporter retired to Mohammed’s makeshift home. Interestingly, the shelter was less than a mile from the police station around the old post office in the border community.

    After finalising arrangements with a police officer usually identified as Officer Sunday (also from Kogi, like Mohammed), we agreed that Saturday would be the day to witness how to evade all security agents manning the porous borders with five bags of rice.

    (Picture 7: ‘It’s time for strategic planning between Mohammed and Officer Sunday, ahead of Saturday’s rice smuggling)

    Mohammed made a bid for a new team of smugglers’ bike riders – J-Boy was no longer in the team. What made their resume more convincing was beyond just being brothers; they spoke French and they were vastly acquainted with all short-cuts.

    That was Mohammed’s masterplan from day one.

    The only activity this second time in Towe, which is rice mounting on a bike, was as swift as it can be.
    The two brothers rode fearlessly into the thick bushes, darting into all possible corners. A few times, we were trapped in the mud and at another time, it was the hurdles of crossing a bridge anchored by planks that broke the sweats for us. In total, our perilous crisscrossing lasted almost three hours within Igbo nla village known as Ile Komi.

    Afterwards, we arrived in Idi Ori in Tata, a residential settlement in between Igan Alade and Ijoun communities.

    The fetish fortification of rice smugglers

    Baba Seun’s hut at Idi Ori in Tata This is where Ogun Smuggler’s Power Lives

    Palpable fear enveloped me after bursting into Baba Seun’s hut at Idi Ori from Ile Komi bushes. That was Mohammed’s hideout and storehouse upon return from every Benin trip. Interestingly, the storehouse is just at the backyard of NSCDC Ketu Headquarters – a stone’s throw away.

    Baba Seun, a herbalist, had no comely face to behold and so was his dreadful vicinity. By one side of his house was hung skull of a dog and on the ground was clotted-blood, with a littering bird’s feathers.

    Next to this was an isolated hut, his power-room for consultations. I was not allowed in. I only peeped to see plain-white garments, small pods suspended to the roof, calabash flattened to the wall and the kinds of costumes I only see in Yoruba movies. It was a frightful sight.

    After the long trip on Saturday, I briefly opted out of the field. With the five bags of rice in the hideout, Mohammed could not venture on another expedition.

    By Tuesday, March 17, Baba Seun had fortified the region where he kept the smuggled rice before our return.

    “You should have told me earlier before coming here. They are not yet ready for carriage. Anyone who steps into that place or speaks a word while carrying will slump and die,” he said.

    A double-check on my confidence level flashed zero at this point. His enchantment on the surrounding was intended for enemies in case they burst in on them. They would die!

    Now that we were there, it would take the herbalist around one hour to remove the spells.

    Near the hidden bags of rice was a pot of herbs, with puffing smoke beneath. As long as the smoke remains alive there, no one dared talk, except to carry the rice to the open and pack for transport.

    After the exercise, I was soon prepared for the final-leg of my covert operation. Next expedition would be from Idi Ori to Igbogila, another community ahead and then to Abeokuta, the capital of Ogun State.

    But, there was just one unavoidable huddle to beat, and that is the police security checkpoint.

    The checkpoint was at the market front of Igan Alade and by the very left was a bush-path leading to Igbogila.

    Mohammed is seen giving Police officer bribe to transport smuggled foreign rice

    With the quick call ‘go! go!’ like a parade commandant, we followed the cue of Officer Sunday to forge ahead. This time, Mohammed had hopped down from the bike and was already by the side of the police officer, enclosing one thousand naira to his left hand. With the five bags of rice, we were now off to Igbogila

    N1,000 was all it costs!

    At around 4:30 p.m on Tuesday, March 17, I alongside two rice transporters, were already on the way from Igan Alade to Igbogila – two Ogun communities tucked in-between the border of Nigeria and Benin Republic.

    Thanks to Officer Sunday of the Police station branch at Igan Alade.

    It’s time for strategic planning between Mohammed and Officer Sunday, ahead of Saturday’s rice smuggling

    The reporter was no longer apprehensive of any difficulty on the way. After all, N1,000 was all it took to buy the protection of a corrupt Nigerian Police officer who allowed us to drive past border communities with smuggled rice worth N51,000.

    At Igbogila, Kazeem Olakolade, a rice transporter in his 50s had been recommended to us. Popular for his shrewdness, he hoards smuggled rice in his house.
    His mantra read like these:

    “There are places I do not cross to carry ‘Oja’ (the local parlance for foreign rice) no matter the money you offer to pay me – like Igan Alade, Ijoun. That’s the region for some boys’ business and I can’t trespass. But, from here to Abeokuta, they know me.”

    “And, for your information, I don’t tell customers about my itinerary. You can’t follow me too. When I get to Abeokuta, I will be the one to call you. Just get my money ready,” he declared.

    A few minutes after 6pm on Tuesday, we are at his place with the five bags of rice. The reporter would no longer be able to track how it gets to the final destination. Olakolade’s charge for the transportation from Igbogila to Abeokuta is N3,000 per bag which means he will make a total of N15,000 from the trip.

    Mohammed was reluctant to pay that much but he made an effort to justify it.

    ‘It’s that much because I also settle too many operatives on the road. In this business, one cannot afford to be frugal otherwise you are doomed.’

    So far, one or two things are now established: that high-level smuggling still thrives in Ogun State through borders and also that the efforts of some serious-minded Customs officers are sabotaged by a few greedy lots. The reporter can only testify to that of the Police (Officer Sunday in particular) which he witnessed.

    Incidentally, on Saturday, May 14, the Customs operatives of the National Border drill intercepted some smugglers at Imasayi town in Yewa North Local Government during an anti-smuggling operation.

    A Customs officer eventually died during the operation that turned violent between officers and smugglers and the neighboring towns experienced a few days of unrest over the bloody clash.

    The spokesman for the Ogun State Command of NCS, Abdullahi Maiwada told this reporter that investigation has been initiated after one of the suspects was arrested.

    Against all odds, foreign rice landed in Abeokuta

    Because of the recent crisis, one did not expect Olakolade to successfully transport the ‘exhibit’ from Igbogila, less than five kilometers away from Imasayi, down to Abeokuta in spite of a recent bloody clash on that route.

    But at around 12:30 pm on Thursday, March 19, he called us to say five bags of foreign rice are now in Abeokuta.

    All it costs to smuggle five bags of rice

    Between Igbogila and Ita-Oshin at Abeokuta, there are at least five checkpoints usually manned by officers of the Nigerian Customs, Importers Association of Nigeria (IMAN), Army and Police, but he does not pay a dime by himself.

    His mode of operation is similar to that of other smugglers I had interacted with during the course of this undercover assignment.

    His Lead, according to the foreign rice transporter, drove ahead to settle all security men at the checkpoints and monitored his distance through intermittent phone calls.

    ‘This is why I insisted that you shouldn’t call me during the trip to help my own concentration on the road’, he said.

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    Mohammed is about to make it big?

    Throughout days spent with him, Mohammed was high-spirited about how fortune will soon smile on him.

    As soon he got through with my deal, he revealed his travel agenda to Akwa Ibom for a crucial deal with an ex-customs boss and the current Commissioner of Works in Akwa Ibom, Mr. Ephraim Inyang-Eyen.

    “The current commissioner of works in Akwa Ibom, Ephraim Inyang, has fixed me up for an appointment. He wants to give me a letter personally signed by him that will ease my passage across any border in Nigeria”, says Mohammed.

    “He was a top Customs officer before he joined politics. Once I get that signed letter, I am getting a huge loan for this job. That is my target and not all these petty smuggling anymore.”

    The letter, according to him, will detail a request for 30 truckloads of foreign rice for the purpose of the politician’s constituency relief project.

    Mr. Ephraim Inyang-Eyen was in the 1990s the Assistant Superintendent of Customs. He rose to become the Special Assistant to the Operations Commander, Apapa before his retirement.

    However, when confronted with Mohammed’s claims, Inyang-Eyen denied them, saying he had never met the smuggler. Upon showing him Mohammed’s picture for identification, he denied knowing him.

    “What will be my gain to issue a letter to a criminal to smuggle rice especially when I am no longer in Customs Service?” he first queried before saying “it is fraud! I don’t know that man from anywhere. I have never met him before, not even during the governor’s burial as he claimed.”

    Mohammed, in a telephone conversation on May 4, however continued to express high hopes about his meeting with the former Custom boss, saying he missed the previous appointment because of the lockdown in the country.

    But his allegation could not be confirmed since he is yet to obtain the letter he spoke about.

    “Border complexity, limited resources are our biggest problems” – Customs PRO

    Despite federal government’s lockdown imposed on the nation’ capital, Abuja, Lagos and Ogun states, Abdullahi Maiwada, the Public Relations Officer for the Ogun State Command of NCS, in an interview with the reporter, stated that about 2,ooo bags of 50kg rice were confiscated from cross-border smugglers in Ogun State alone in April.

    He, however, admitted to the challenges of border porosity, partly blaming it on limited resources.
    ‘Despite working in the most complex terrain in terms of the geography and porosity of the border, we are among the best NCS Commands in the country. We can not bring a total end to smuggling but our responsibility is to suppress the activities’, the NCS’ spokesman said.

    ‘Aside from the seven approved routes of movement of goods and persons in Ogun state, there are over a 100 unapproved routes these smugglers navigate to carry out their illicit business.

    ‘We just have to manage our limited resources to achieve the desired aim’, he added.
    Maiwada briefly established that there are internal mechanisms to discipline erring operatives caught conniving with smugglers while smugglers apprehended with accomplices are left to the judiciary to prosecute.

    This, sometimes, does not happen as the latest arrest made is a chief smuggler within Ogun borders who has a past record of arrest by NCS Ogun Command, Maiwada revealed.

    Unequivocally, Maiwada’s assertions confirmed two clogs in the wheels for Ogun State Command of NCS. The first is that ‘Ile Komi’ where Mohammed’s team had taken me through from Benin Republic and Igbokofi town in Yewa North LGA may continue to be strongholds of smuggling except security operatives are deployed to man the routes.

    Another is that, until NCS is legally empowered to prosecute any accomplice in smuggling, including security operatives and the local residents in border communities, smuggling would continue to thrive.

    **This investigation was done with the support of International Centre for Investigative Reporting, ICIR.