The Nation Newspaper

Category: Special Report

  • A sociologist’s take

    Frank Ikpefan

     

    ACCORDING to a Sociology expert, Dr Abubakar Kari, parents should not push their children into doing things that are not right or to insist on deciding exactly the profession or discipline the children should do.

    Kari, an Associate Professor and a lecturer in the Department of Sociology at the University of Abuja, accused some parents of not only coercing their children to study for a particular discipline but actively participate in perpetuating things that are against the law just to give their children undue advantages.

    The society, he explained, would suffer the consequences of parents imposing their choices on their children.

    He said: “This issue of parental pressure is a common phenomenon in Nigeria and I don’t think it is good both for the health of the child psychologically, mentally, physically and even for the stability of the society. Because in most cases, even when the children somehow manage to get admission to red medicine they may not do well an so they would have succeeded in wasting the child’s time or pushing him to more desperate measures even as an undergraduate.

    “I have experienced a lot of this; a situation where parents actively get involved in violations simply to bail out their children or to ensure that their children enjoy some undeserved privileges or enjoy some undeserved advantages. It happens all the time.

    “Something is not right with our value system. A situation where parents place so much premium on pushing their children to do things they don’t have the competence to do, they can’t do it or even the interest to do it and, in the process, they push them into deviance and crime. It is very bad for the children, family and society.

    “The most important thing is to encourage them. There is nothing wrong in encouraging a child to study medicine or pharmacy or engineering or whatever discipline you want but not to force them.

    Read Also: Report any fraudulent worker, JAMB tells candidates

    “There should not be coercion. If you apply coercion and undue pressure, the consequences may be grave because you may have to resolve to self-help, to crime and to some things that are not right.

    “Some parents do not only coerce children but they actually actively participate in perpetuating things that are against the law simply to give their children undue advantages like procuring people to write the West Africa Examination Council (WAEC) for them, write JAMB for them or trying to sort lectures to pass them all in desperation to ensure that their children become doctors, engineers or lawyers.

    “In the end, even if they succeed, it is the society that suffers because inevitably, the children become charlatans and quacks. It is not likely that they will do well either as doctors, lawyers or pharmacist and you inflict them on the society.

    “The consequences are grave that’s why we have social disorder all over the place. We have quackery, we have charlatanism, we have people who call themselves professionals and they do not know the first thing about their professions. It is a chain of consequences- psychologically, the children foul the system by resulting in bribery and corruption and sorting,” he said.

    On the possible effect, of prosecution, on the candidates’ future, Dr Kari said: “It is a two-way thing because as an institution, I think JAMB wants to acquit itself. As an institution, JAMB has to exculpate itself, it has to prove to the world that these things were the incidence of forgery or tampering of results. If they do not do that, many Nigerians will believe the alleged forgers more than the JAMB. to preserve and safeguard the system and maintain their integrity and good image as an institution, JAMB had to do that (prosecute the candidates).

    “Secondly, it will break the children because at such a young age, somehow they have been coerced by their parents to engage in acts or omissions that have grave consequences not only for their immediate future but also for their future. It is really unfortunate. The prosecution may likely break the children which are not good.”

  • Nigerians still pay more for U.S. visa

    Following a ministerial directive, Comptroller-General of Nigeria Immigration Service Muhammad Babandede is said to have decreased Nigeria’s visa charges to United States citizens so that Nigerians will not have to pay more for American visa, but as The Nation found out yesterday, visa applicants in U.S. visa centres in Lagos and Abuja still acceptance fees, writes VINCENT IKUOMOLA

     

    What Nigeria charges other nationals

    United States $270
    Bangladesh $253
    Belize $200
    Chile $200
    India $253
    Indonesia $245
    Ireland $170
    Israel $169
    UAE $150
    South Africa $58
    United Kingdom $144
    China $64
    Malaysia $6

    •Source: Nigeria Immigration Services (NIS)

     

    IT looked like a proactive action. A day after the American government announced that Nigerians applying for tourism, student, media and business visas to the United States will have to pay issuance fees, Minister of Interior Rauf Aregbesola ordered Comptroller-General of Nigeria Immigration Service Muhammad Babandede ought to have decreased Nigeria’s visa charges to United States to move against it. But about two months later, Nigerians are yet to benefit from the minister’s action.

    NIS Public Relations Officer Sunday James told The Nation yesterday that the Immigration immediately complied with the minister’s directive.

    Aregbesola, in a statement by the ministry’ spokesman, Mohammed Manga, said a committee set up to conduct due diligence in line with the ministry’s extant policy on reciprocity of visa fees had earlier engaged with the US embassy on the issue, adding that the implementation of its recommendations was delayed due to “transition processes in the ministry at the policy level.”

    It said: “The committee had concluded its assignment and submitted a report, but the issuance of authorisation for its recommendations was delayed due to transition processes in the ministry at the policy level.

    “The Minister of Interior, Ogbeni Rauf Aregbesola, has approved the decrease of visa charges payable by US citizens in line with reciprocity policy as recommended by the committee.

    “Accordingly, the Comptroller-General of Nigeria Immigration Service, Muhammad Babandede, has been directed to implement the decrease in Nigeria’s visa charges to US Citizens with effect from August 29, 2019.”

    The American government’s reaction to the ministry’s statement was that it would study the situation and would only stop the acceptance fess after seeing assurance that Americans seeking to come to Nigeria were not paying more.

    The new fees introduced by the U.S. are aside from the $160 or N59, 200 processing cash for all visa categories.

    The embassy adopts the rate of N370 per $1 for Nigerians. The official rate is about N360 to a dollar.

    Now, for a tourist visa, an extra $110 or N40, 700 is paid after the visa has been issued to the applicant. Applicants, whose applications are denied, will not need to pay the extra $110.

    Applicants seeking the work permit otherwise known as L1 Visa now pay an extra N112, 100 if given visas while those applying for dependency/spousal visa (H4 visa)  pay an extra N66, 600.

    The embassy’s statement added that the increment was done based on reciprocity, which means when a foreign government imposes additional visa fees on U.S. citizens, the United States imposes reciprocal fees on citizens of that country for similar types of visas.

    The embassy blamed the Federal Government for the reciprocity fees for refusing to remove the additional cost imposed on Americans.

    Its statement reads: “Effective worldwide on 29 August, Nigerian citizens will be required to pay a visa issuance fee, or reciprocity fee, for all approved applications for nonimmigrant visas in B, F, H1B, I, L, and R visa classifications. The reciprocity fee will be charged in addition to the nonimmigrant visa application fee, also known as the MRV fee, which all applicants pay at the time of application. Nigerian citizens whose applications for a nonimmigrant visa are denied will not be charged the new reciprocity fee. Both reciprocity and MRV fees are non-refundable, and their amounts vary based on visa classification.

    “U.S. law requires U.S. visa fees and validity periods to be based on the treatment afforded to U.S. citizens by foreign governments, insofar as possible. Visa issuance fees are implemented under the principle of reciprocity: when a foreign government imposes additional visa fees on U.S. citizens, the United States will impose reciprocal fees on citizens of that country for similar types of visas. Nationals of a number of countries worldwide are currently required to pay this type of fee after their nonimmigrant visa application is approved.

    “The total cost for a U.S. citizen to obtain a visa to Nigeria is currently higher than the total cost for a Nigerian to obtain a comparable visa to the United States. The new reciprocity fee for Nigerian citizens is meant to eliminate that cost difference.

    “Since early 2018, the U.S. government has engaged the Nigerian government to request that the Nigerian government change the fees charged to U.S. citizens for certain visa categories. After eighteen months of review and consultations, the government of Nigeria has not changed its fee structure for U.S. citizen visa applicants, requiring the U.S. Department of State to enact new reciprocity fees in accordance with our visa laws.

    “The reciprocity fee will be required for all Nigerian citizens worldwide, regardless of where they are applying for a nonimmigrant visa to the United States. The reciprocity fee is required for each visa that is issued, which means both adults and minors whose visa applications are approved will be charged the reciprocity fee. The fee can only be paid at the U.S. Embassy or the U.S. Consulate General. The reciprocity fee cannot be paid at banks or any other location.”

    President Donald Trump, in a 2017 executive order, pushed for stricter visa reciprocity terms. In the executive order, he urged the secretary of State to “review all non-immigrant visa reciprocity agreements” in respect of validity periods and application fees.

    “If a country does not treat United States nationals seeking nonimmigrant visas in a reciprocal manner, the Secretary of State shall adjust the visa validity period, fee schedule, or other treatment to match the treatment of United States nationals by the foreign country, to the extent practicable,” the executive order read.

     

    Dropbox suspension

     

    The embassy had in May suspended its dropbox visa renewal programme for Nigerians with travel history to the United States.

    The statement suspending the programme reads: “Effective at the close of business today, Tuesday, May 14, 2019, the US Mission to Nigeria is indefinitely suspending interview waivers for renewals, otherwise known as the ‘Dropbox’ process.

    “Visa applications will no longer be accepted by DHL in Nigeria. Those who have already submitted their passports via Dropbox to DHL for processing either at the US Embassy in Abuja or the Consulate General in Lagos, will not be impacted by this change.

    “All applicants in Nigeria seeking a non-immigrant visa to the United States must apply online and will be required to appear in person at the US Embassy in Abuja or US Consulate General in Lagos to submit their application for review. Applicants must appear at the location they specified when applying for the visa renewal.

    “Processing of diplomatic and official (A, G, and NATO class) visa applications will continue unchanged.”

    It added its processing procedures are regularly reviewed to “assess our ability to quickly, efficiently, and securely process visa applications”.

    Nigerians are certainly looking forward to the two governments sorting out their differences for a quick return to the old fees regime.

  • Investment, human capital development dominate summit

    Two facts stand out at the 25th edition of the Nigeria Economic Summit: Nigeria needs investments and human capital development to have a major spot among global economies, writes Assistant Editor NDUKA CHIEJINA

     

    THE 25th edition of the Nigeria Economic Summit has just ended with a clear message for the human capital development of the country’s young and growing population.

    The Nigeria Economic Summit Group (NESG), the body that organises the summit, opened the event with this declaration, “the United Nations projects that Nigeria’s population will double in 2050 and only a competitive private sector economy can help the country achieve a rising standard of living and economic prosperity for a projected population of 400 million Nigerians by the year 2050. Nigeria can modernize its economy in a way that all firms can achieve more sophisticated competitive advantages and higher productivity.”

    The Nigerian Economic Summit set a new agenda for Nigeria in the Fourth Industrial Revolution (which essentially revolves around ICT), and that marks a critical strategic shift to a competitive private sector economy by 2050. Discussions at NES #25 4 sub-themes: achieving rapid industrialisation, transforming education, managing demography, and sustainable peace and security were discussed.

    Aliko Dangote, Africa’s richest man, who was represented at the Summit, identified the private sector as key to attaining the industrial revolution, urging the government to encourage more investments from local entrepreneurs.

    Emir of Kano Muhammadu Sanusi (II) said that Nigeria’s huge population had become a liability.

    First Bank Plc Chairman Ibukun Awosika canvassed for a state of emergency in the education sector for Nigeria to harness the potentials of its human resources.

    The Chairman of the newly constituted Economic Advisory Council (EAC), Dr Doyin Salami, called for clarity in economic direction for the nation to attract investment and create an enabling environment for the private sector to thrive.

    Last year, the World Bank unveiled a new plan to help African countries strengthen their human capital. The objective of the plan is to enable Africa’s young people to grow up with optimal health and equipped with the right skills to compete in the digitizing global economy.

    “Sub-Saharan Africa scores the lowest of all the world’s regions on the World Bank’s Human Capital Index, a measurement of how well countries invest in the next generation of workers. The score is hinged on high mortality and stunting rates in the region, as well as inadequate student learning outcomes – all of which have a direct effect on economic productivity.

    “In an effort to help countries turn these indicators around, the World Bank’s Africa Human Capital Plan is setting ambitious targets to be achieved in the region by 2023. These include a drastic reduction in child mortality to save 4 million lives, averting stunting among 11 million children, and increasing learning outcomes for girls and boys in school by 20 per cent.

    “These achievements can raise Africa’s Human Capital Index score upwards to increase the productivity of future workers by 13 per cent.

    “Preventing a child from fulfilling his or her potential is not only fundamentally unjust, but it also limits the growth potential of economies whose future workers are held back. GDP per worker in Sub-Saharan Africa could be 2.5 times higher if everyone were healthy and enjoyed a good education from pre-school to secondary school,” says World Bank Vice President for Africa Hafez Ghanem at the launch of the Bank’s Plan during the World Bank-IMF Spring Meetings.

    The Plan also aims at empowering women to prevent early marriage and pregnancy for adolescent girls. “The adolescent fertility rate in Sub-Saharan Africa is 102 births per 1,000 girls—three times as high as in South Asia. This not only damaging for girls and their children, but it also hurts economic growth,” noted Ghanem.

    The World Bank has pledged to increase its investments in human capital in Africa by 50 per cent in the next funding cycle. This includes new World Bank grants and concessional finance for human capital projects in Africa totalling $15 billion in fiscal years 2021-2023. The World Bank will invest these funds strategically to unblock structural constraints to human capital development. The World Bank will also target game-changing interventions that leverage technology and innovation and that prevent and reverse damage to human capital in fragile and conflict-affected settings.

    The World Bank is already supporting countries to come up with new strategies to invest more and better in their people. Twenty-three African countries, covering over 60% of the region’s population, have joined a coalition of nearly 60 countries to join the Human Capital Project, committing to a set of accelerated investments in their human capital.

    “Human Capital Project countries are breaking away from traditional paradigms to make the investment in their people a priority and are working in a more coordinated way across government to ensure that households have the right enabling environment to support human capital formation,” said Annette Dixon, World Bank Vice President for Human Development.

    The African Development Bank’s (AfDB) Human Capital Strategy aims to harness the potential of one billion Africans through skills development and investments in new technologies to promote quality jobs and workforce competitiveness. With a population bigger than any other continent’s, Africa has a huge asset and a strong competitive advantage.

    Equipped with education, skills and jobs, its youth stand to be the most important driver of economic growth. Inclusive economic growth ensures Africans can reach their full potential and are on a path to prosperity. Harnessing individual potentials of Africa’s human capital is the most sustainable key to economic transformation and social progress.

    President Muhammadu Buhari noted that since the elections have come and gone and Nigeria has “shown the world that we can choose our leaders in a peaceful and orderly manner”, the summit should submit to his government proposals that are “productive, inventive and innovative keeping in mind that Nigeria’s unique challenges can only be solved by made in Nigeria solutions.”

    The NESG has identified key job-creating sectors such as agriculture, manufacturing, ICT, creative industry and the extractive industry as focus sectors and at their deliberations focused on unlocking capital through the financial services sector to actualise the opportunities in these sectors.

    In doing this, President Buhari cautioned participants not to mistake prosperity with wealth. According to the President, “wealth, in its simplistic form, is money or other assets. In recent years, global events have shown that when a society and its leaders are driven and motivated by these alone, the outcome is a divided state of severe inequalities. But a prosperous society is one where the majority of its citizens have an acceptable standard of living and a decent quality of life.”

    Buhari lamented that Nigeria is a country with close to 200 million people living in 36 states and the FCT but, “a significant proportion of Nigeria’s prosperity today is concentrated in the hands of a few people living primarily in four or five states and the FCT. This leaves the remaining 31 states with close to 150 million people in a state of expectancy and hope for better opportunity to thrive. This, in the most basic form, drives the migratory and security trends we are seeing today both in Nigeria and across the region.”

    The President said in meetings he has attended in recent times, the consensus by world leaders has always been that “to address population growth, security and corruption matters in developing economies, our policies and programs must focus on promoting inclusivity and collective prosperity.”

    This shift, he said, implies that the concept of having competitive free markets that focus on wealth creation alone will be replaced by those that propagate the creation of inclusive markets which provide citizens with opportunities that will lead to peaceful and prosperous lives.

    Buhari, quoting a book about the financial crisis written by three leading US policymakers who are advocates and true believers in the power of free markets, said the authors highlighted the need for the invisible hand of the market to work side by side with the visible hand of government to protect businesses and create opportunities for citizens.

    His administration’s economic policies in the last four years, he said, were focused on the need to uplift the poor and the disadvantaged and encourage inclusivity. As a government, the view of his administration, he pointed out, “is to equip our citizens with the means to seize any opportunities that may arise. This means we continue investments in education, health care, infrastructure, security and strengthen and entrench the rule of law.”

    Minister of Finance, Budget and National Planning Zainab Ahmed said it has become imperative for Nigeria to move to a more robust competitive private sector economy with a focus on the implications of the projected population of the country hitting over 400 million, making Nigeria the third most populous country in the world by 2050.

    She warned that there would be danger ahead giving that the structure of this population showed that the majority would be under the age of 35, representing a large percentage of Africa’s young working-age population. The opportunities, she said, are endless, as are the risks, adding: “However, if we do not accelerate our efforts towards sustainable and inclusive growth, and improved human capital Nigeria and Africa, in general, maybe the worse for it.”

    Mrs Ahmed added: “There is an urgent need to design policies that will not only address the rising population but ensure paradigm shift to a competitive private sector-led economic growth and development. The Agenda for this Summit is, therefore, to provide strategic and innovative ways of getting the maximum benefits from the expected demographic dividends.”

    On what Nigeria should look like in the future, Mrs Ahmed hopes to see “a future where the majority of Nigerians have been sustainably lifted out of poverty, and have access to fundamental services including education, health care, water supply and sanitation. A future where all are financially included, with affordable access to financial products and services. A future where we have left no one behind. A Nigeria with a thriving and booming private sector-led economy that can translate into domestic revenues for governments to reinvest in sustainable growth levers.”

    She wants to see “a future where our young and vibrant population is well educated (particularly in STEAM [Science, Technology, Engineering, the Arts and Mathematics] education) – creating a workforce with the skills that well positions our youth to be gainfully employed. This includes high-value digital jobs that will not only tap into but also drive the limitless global digital economy. An advanced high-tech manufacturing sector that is globally competitive, and can ensure value addition for our natural endowments in raw materials.”

    This future, she argued, “will require comprehensive targeted reforms, tough decisions, a radical shift in the current culture, including attitudes towards taxes and public finance. Just as the saying goes ‘no pain no gain’- I must say, the journey will be a painstakingly tough and will require sacrifices on all sides- including Government, the private sector, citizens and other stakeholders.”

    Mrs Ahmed warned that the future she envisaged “requires huge financial investments on multi-faceted physical and social areas by both the federal, state and local governments to be able to provide quality, useful, accessible and affordable education, healthcare, transportation, housing, electricity, water. Additionally, we must be in a position to provide digital connectivity and innovation, and rise above the tide of disruption that the Fourth Industrial Revolution will bring.”

    To members of the Nigeria Economic Summit Group (NESG), Mrs Ahmed gave a call to action where she stated that “as representatives of Government, the private sector, civil society, and most importantly as Nigerians, join hands to co-create a future Nigeria in which: (a) no one is left behind; (b) growth is not only competitive but is also inclusive and sustainable; (c) and in which we as the “Giant of Africa” will lead the way in terms of innovation, industrialization, and human capital on the Continent and beyond.”

    Budget Office of Federation Director-General Ben Akabueze warned that for government to deliver services, in the face of rising population and demands increasing astronomically without increasing the capacity would be disastrous. He explained that “85 per cent of collected VAT goes to the sub-national governments, states and local governments. The Federal Government is not increasing the VAT to feather its own nest. But it’s one economy.”

    The Chairman of NESG, Mr Asue Ighodalo, said it would start work on policies to take Nigeria’s economy to the top ten world economies.

    Despite these calls from many quarters that the time has come to develop Nigeria’s human capital, first through the right kind of education, in the 2020 budget proposal submitted to the National Assembly, education got N48 billion of the N10.3 trillion budget package. The bulk of the budget will go to debt servicing and paying civil and public servants wages and allowances.

  • What Shell says about peace deal

    SHELL Managing Director, Osagie Okunbor, said the dispute had been for two years but “we are happy that we concluded on resolving the dispute”. He spoke when the deal was brokered in Abuja.

    “I want to convey my deep appreciation to the GMD of NNPC for the intervention to bring this issue to a closure. When dispute of this nature happens, everyone suffers, especially the immediate family, recipient community not to talk of investors like ourselves.

    “We have been in discussion with communities and Belema Oil and sometimes under the auspices of government. We are very pleased that we have finally brought this to a conclusion, to work on some agreements with communities to achieve speedy return to operations on that facility,” he said.

    He said to meet the plight of the host communities, Shell had paid in the Joint MOU account, over N300 million to restart community efforts it had not done because of some issues.

    Okunbor said under the joint MOU framework money would be paid into communities’ accounts to execute projects to ensure that employment opportunities get to the people.

    Read Also: What NNPC/Shell partnership does for society

    He noted that SPDC remained the operator of the OML 25 but assured commitment to ensure that all parties would derive from the benefits.

    In the heat of the brouhaha, Shell insisted it had high regards for its host communities in the Niger Delta.

    “Shell JV’s committed to the welfare of its host communities in the Niger Delta remain unshaken, even as we debunk every allegation that we neglected the development of communities in Kula Kingdom and Belema,” the company said.

  • How Fed Govt, others lost $1.7b to OML-25 dispute

    OML-25 is now open for business but not after the Federal Government and other partners lost $1.7 billion, writes ROSEMARY NWISI, Port Harcourt

     

    IT is a lucrative flow station operated by the Anglo-Dutch oil and gas giant Shell Petroleum Development Company (SPDC) on behalf of Total E&P, Nigerian Agip Oil Company (NAOC) and Belemaoil Oil Producing Limited. The Nigerian National Petroleum Corporation (NNPC) is the joint venture partner.

    Until the dying days of September, the Oil Mining Licence (OML)-25 flow station in Kula Kingdom of Akuku-Toru Local Government Area of Rivers State was shut for over two years. A group of women ensured no exploration was carried out. And with the dispute went down $1.7 billion.

    The flow station is one of the largest producers of crude oil in the Niger Delta with capacity of 350, 000 barrels per day. Three communities, Offoin-Ama, Belema and Ngeje, jointly share hosting rights to the platform.

    In 2017, the host communities and the indigenes became distraught with Shell. They decried the deplorable condition of the communities despite 40 years of oil drilling by Shell.  They alleged gross negligent, marginalisation, lack of jobs, scholarships, basic and social amenities. Above all, they alleged non-implementation of Memorandum of Understanding (MOU), with the communities. Amid this, Shell announced plans to divest the facility to a local oil company of its choice.

    The communities objected and urged the oil giant to give Belemaoil with 7.7 per cent stake in the facility the right of first refusal.  Belemaoil founder Tein Jack-Rich is an indigene of the Kingdom. SPDC refused and insisted on doing it its own way.

    The decision aggravated the situation and the communities began a “Shell must go. No Belemaoil no OML-25” campaign with women and children mounting blockade at the facility to ensure no activities took place. Appeals and threats could not break their resolve.

    The protest, which started like the usual Nigerian Labour Congress (NLC) picketing of erring companies and businesses premises, lasted for two years, one month, two weeks and three days, having started on August 11, 2017 and ended on September 28, 2019.

    Rivers State Governor Nyesom Wike was concerned about the huge loss of revenue by the governments (federal, state and local). He waded into the matter, set up a reconciliation committee chaired by the Secretary to the State Government (SSG) Dr. Tammy Danagogo, a former Sports Minister and indigene of Akuku-Toru Local Government Area. After meetings with some stakeholders, a one-week ultimatum was issued to the women to vacate the facility, but that fell on deaf ears.

    Last month, Minister of State for Petroleum Timipre Sylva and NNPC Group Managing Director (GMD) Mele Kayri intervened and resolved the matter to the satisfaction of all parties in the impasse.

    On September 17, the parties (NNPC Shell and Belemoil) agreed and signed a pact which showed that Shell remains the major owner of the flow station. The pact put Belemaoil in charge of production, maintenance, employment and development of the host communities and the Kula areas. September 27 was set for the opening of the facility.

    King Bouillon Oko

    Before the facility was finally switched on September 28, the paramount ruler of Belema community, King Bouillon Oko, addressed the women and children, and told them that the struggle had come to a successful end.

    “I want to inform you that the entire struggle has come to a successful end; your sacrifices did not go in vain, and I assure you that it is time for all of us to begin to enjoy the reward of many years of patience and struggle.

    “It is now time for you to vacate this flow station so that it can be reopened, so that it can begin to generate money to meet the needs of the communities, so that you and our youths who have been roaming the streets can begin to work and earn money so they can take care of some responsibilities by themselves,” the monarch said.

    The re-opening held amid fanfare and provided opportunity for stock-taking. The NNPC GMD, in an interview at the event, put the revenue loss at $1.7 billion, but expressed the hope of recovering lost grounds.

    “There was a breakdown of law and order in the Kula community leading to the shutdown of Belema flow station for more than two years, leading to the lost of 35,000 barrels of oil per day and the peace of the community.

    “In monetary terms, that was about $1.7 billion, which would have been used for the benefit of the communities and the federation,” Kyari said.

    Jack-Rich corroborated the GMD and expressed the need to hit the ground running now so that the station would begin to yield income again.

    He said: “The Federal Government needs to start making money, NNPC needs to start making money, Shell and Belemoil also need to start making money, because Belemaoil is also a partner in that asset. Shutting down the assets further now is of no benefit to neither Belemaoil, Shell, FG, NNPC or the communities because youths can’t get jobs and the communities cannot be developed.”

    Need for peace

    Peace is one of the major factors identified at the event as veritable in driving the developmental needs of the communities and their indigenes.

    Speaker after speaker called on the people and youth to bury their hatchets and support the new development for the benefit of all.

    Kyari, Sylva, Jack-Rich, Kula Supreme Council of Chiefs chairman, Dr. Koroma Eleki and old Rivers State first Military Administrator, who is also the Amanyanabo of Town Brass, King Alfred Diete Spiff, sued for peace.

    Kyari said: “ We have engaged the communities and their leadership to ensure that the dispute between them and Shell is brought to a closure because our ultimate concern is the peace and unity of the communities so that there will be a conducive environment for growth, revenue generation and development of the communities and the people.”

    Sylva said: “We need peace because if we don’t begin to make our communities peaceful, development will not come, investors won’t come here, but we must make our communities conducive for them to come; if investors do not come, there will be no jobs for our youths.

    “It is now our responsibilities to bring peace in our communities so that investors  can come and create the jobs.”

    Jack-Rich urged that the past should be forgotten for development to come. “Now is the time to forget the past, now is the time to ensure that we live together as one united Kula. It is not a time for you to say A was bad, B was good, C is most excellent. No, let us move forward because the victory is not to Belemaoil but to Nigeria and you that have made this victory a possibility. Hate is dead in Kula Kingdom while love now lives,” he said.

    King Eleki called on ”every member of our community to shun all forms of acrimony and rally the new operators of the facility for the growth and development of the Kingdom”.

    Women, youths set agenda for Belemaoil

    The women and youths of the communities expressed their confidence in Belemaoil’s ability to transform the area.

    They want the proposed construction  of access road across Kula/Bille sea to begin immediately to open the doors of investment and development to the oil rich area and end the dangers of several centuries of journeying to and fro the sea by boats.

    They are equally expecting more employment opportunities, contracts and scholarship for the children among others.

    “The youths of Kula are happy for what has happened. We have tried Shell for 40 years without making any progress. We were neglected, abandoned, impoverished and left without hope, but we tried Belemaoil for just three years and we have seen huge results, signs of transformation of both our human and environmental resources; that is why we are jubilating.

    “Belemaoil has already done so much for the communities even without OML-25, so we believe that with the addition now, beyond the sky is our limit. The youths will be empowered more, given employment, among others and the women  that are at the fore front of the fight will be empowered the more and carried along in the  process and this will bring about the  expected peace that will attract investors and their investments to our communities,” a youth leader, Temple Ibifubara, said.

    The women who shut the station

    Ogbomate Apamabo and Dukumo Agbelepele Dokubo, who were involved in the occupation of the flow station, expressed happiness that their labour was not in vain.

    Mrs. Apamabo said: “For over two years we shut down our flow station OML-25 because of the way Shell which operated the oil well for over 40 years maltreated us and our communities.

    “We vowed that Belemaoil should operate it because it has demonstrated commitment towards our development.

    “Good things never come easy. We suffered a lot; mosquitos finished us at the platform, cold, some of us suffered pneumonia. Some of the children equally suffered different health challenges there. Some of the women also gave birth at the facility. We had our pots, plates, mats, everything. Our experience there is unexplainable but we are happy that at the end, God answered us.

    “We really passed through so many things, but nobody died, and for that we are very grateful. We set up a church where we fasted and prayed to God every Wednesday and every Sunday, we conducted the church service weekly.”  Dokubo said the women were never discouraged. “We did not allow anything to discourage us during the two years we occupied the flow station, not even the threats by the local government moved us. We were ready for anything that came our way, and as God would have it none of us died in the process, instead women were giving birth there,” she said.

    Gospel according to Jack-Rich

    Addressing the women at the facility before they accepted to pull out for the reopening event to take place, Jack-Rich assured them of the commitment of President Muhammadu Buhari’s administration, the Minister of Petroleum, NNPC  GMD, Shell Managing Director and the Country Chair to develop their communities.

    “Be rest assured that your cry for the development of your communities have been recognised by Mr. President, the Minister of Petroleum, the GMD of NNPC and the MD of Shell and the Country Chair.

    “Shell came here with the most powerful personnel; the Deputy MD was here with the MD, and the Technical personnel, the Executive Director of local content was also here among others.

    “The entire community is happy, the youths are happy because they are going to have jobs. The GMD of NNPC has already asked the communities to hold him and me responsible if their place is not developed, and the youths still not have jobs. Those are very important and serious statements which no one can tool with,” he said.

    King Alfred Diate-Spiff

    In an interview, the chairman of the event, Diate-Spiff, lauded the Federal Government for demonstrating right political will to resolve the issues to the satisfaction of all parties.

    He said: “The nation needs the oil now and it is good that positive decisions have been taken and demonstrated in Kula oil problems. This goes to show that the government feels the pulse of the people and we are grateful for that.

    “However, the government does not need to wait for members of oil bearing communities of the Niger Delta or any other part of the country who are suffering neglect from oil operators in their domain to get angry, go red-hot, wide-hot and nuclear before they can step in to resolve the burning issues, having settled this, I will also like them to step in an resolve similar situations in other parts of the region.”

    ‘Resolve other Niger Delta disputes’

    Also, Leader of Niger Delta Volunteer Force (NDVF), Asari Dokubo a Non-Governmental Organisation (NGO), applauded the Federal Government for resolving the issues between Kula Kingdom and Shell and requested that the same measures be taken in other oil-bearing communities in the Niger Delta.

    “This is a watershed in the history of Niger Delta and will re-echo and vibrate in the Niger Delta even after we had gone.

    “Shell says we are bad people, we are pirates, we are saboteurs, we stopped oil production in their facility among other allegations and for that reason they are going to sell off their interest in the flow station, then we said to them, since you have voluntarily decided to divest, give us the right of first refusal, they refused and went and organised their cronies to come and buy what God has given us; we refused.

    “Former President Goodluck Jonathan in resolving the issues during his administration urged Shell and Belemaoil to jointly manage the facility, but Shell refused, but after many years of stoppage of oil production, we have come back to the same place we were before.”

     

  • Tortuous path to peace in Zamfara

    Zamfara State governor, Bello Muhammad Matawalle, in company with his Sokoto State counterpart, Alhaji Aminu Waziri Tambuwal, laid the foundation for three rural grazing areas (RUGA) and flagged off a medical outreach for the Fulani communities across the state. The move, Matawalle said, was inspired by his belief that the most serious issue in the social lives of the people of the northern region is perennial clashes between farmers and herdsmen.

    The primary issues at stake, according to him, have always been those of access to grazing land, water points and cattle routes. In recent times, the conflicts have assumed an uglier dimension, prompting the state government to go the way of the rest of the world by transforming cattle rearing from the nomadic style to the sedentary one. This, he believes, will ensure harmonious coexistence between farmers and herdsmen as well as the general populace.

    Matawalle, who noted that the consequences of the banditry and kidnapping experienced in Zamfara State was beyond human imagination, observed that the historical ties between the hitherto peacefully coexisting communities had been ruptured, with the rural economy almost destroyed and potential investors scared away.

    Speaking during the foundation laying ceremony for the new RUGA settlements, Matawalle said: “On assumption of office, we initiated a dialogue and reconciliation strategy which has recorded tremendous success. Today, apart from laying down their arms and embracing peace, the repentant bandits are collaborating with the state in ensuring the sustenance of peace and order in the state.”

    Matawalle, who disclosed that three pilot rural grazing areas would be constructed, one each in the three senatorial districts, as a pilot programme, also revealed that each settlement would be constructed with the sum of N2,877,000,000 each, totaling about N8.6 billion for the three. More, he said, would be constructed depending on the success of the pilot projects.

    Explaining the facilities that will be available at the settlements, Matawalle said that each of them would be equipped with state-of-the art facilities covering 100 hectares of land, which would make the environment lively for the community and enhance cattle production. The facilities, according to him, include veterinary clinics, cattle ranches, 210 housing units of three  and two-bedroom flats, a primary school of 12-classroom capacity, a secondary school, an Islamiyya school, a primary healthcare centre of 30 beds capacity and an earth dam.

    Other facilities at the settlements will include a cattle cottage, a grazing yard, a modern abattoir, a Jumu’at mosque, a cemetery, a police station, a mini market consisting of 140 open and locked-up shops, a livestock market, access roads covering the entire vicinity of the settlement, irrigation farms and canals, a dairy collection centre, 12 hand pumps and four solar motorized ones. Each of the settlements will also contain a medicinal grass band that matures within 16 weeks, which will improve the quantity and quality of cow milk; a shelter belt and a social centre for sporting activities, ceremonies and other community engagements.

    Peace initiatives and disarmament

    The prevailing peace in Zamfara State, which has seen warring factions of the local vigilante groups, popularly known as Yan sa Kai, sheathe their swords and caused bandits to release their captives, was facilitated by the peace efforts initiated by Governor Matawalle and the state’s Commissioner of Police, Usman Nagoggo.

    It was based on the sanctity of words from the two custodians of the law that about 400 captives were released. “It is important to note that almost all the captives who were deprived of their freedom in the past seven to eight months have regained their right to move freely through the current peace and reconciliation initiative,” Nagoggo said.

    The way to peace in the state was divided into three phases. The first phase was ensuring that all captives were released unconditionally. The second was to build mutual trust and understanding to erase all forms of suspicion arising from the peace and reconciliation efforts. The trust built by the police and the government promptly started yielding positive result, so much so that the bandits are now becoming eyes and ears of the peace process initiators in the forests while also acting as shields for the crisis-prone areas and as vanguards for the innocent citizens.

    According to Nagoggo, “the bandits are always ready to take on anybody among their kinsmen who is not ready to toe the line of peace as contemplated by the Inspector-General of Police and the Zamfara State Government. Instances abound where the bandits killed some recalcitrant ones among them, recovered their rifles and handed them over to us.”

    The disarmament programme began on a very slow note, the police patiently waited like the vulture until the successes of the disarmament programme began to manifest, culminating in the submission of an avalanche of weapons to the government even though it was done in batches.

    Explaining the process by which relative peace was achieved in the state, Dagoggo cited the example of an incident on July 25, when an AK-47 rifle with Breech No. 701883/1988 and four rounds of live ammunition were brought to him by one of the elders in one of the districts in Maru Local Government Area (LGA) after some repentant bandits had silenced the recalcitrant ones.  Then on August 19, an AK-47 rifle with Breech No. 56/1210035/00 was also recovered from another strong headed bandit, whom he said has since paid for the crime he intended to commit.

    “It is important to stress that the closest relations of the unrepentant bandits were the foot soldiers of the peace and reconciliation efforts in Zamfara,” he said.

    On August 26, another AK-47 rifle with Breech No. 0701421 was also recovered by one of the bandits in Birnin Magaji from one of his boys who was on his way to rustling cows with the same AK-47. But he was arrested by the master himself and the AK-47 has since been handed over to the state Commissioner of Police.

    By implication, he said, the bandits are now fighting some of their own who are not ready to follow the path of peace and constituted themselves into stumbling blocks to the already well received peace in the state.

    The third phase of the peace process, he noted, encompassed the disarmament programme which he said was expected to be tedious and challenging because the bandits themselves were having serious issues among different groups in their quest for power and supremacy in the bush and other ester codes associated with the status of being a leader.

    He said: “My assessment after intensive interviews with the bandits was that they wanted to surrender the arms but they needed to reconcile their differences. We have entered into the arena to act as an arbiter between the warring factions to achieve the desired result. The good news is that they have stopped buying weapons of whatever calibre. So the influx of weapons into the state has stopped. All we need to do is to continue disarming the current holders of arms in the state.”

    The Commissioner of Police, however, said the newfound peace in Zamfara State has not diverted the attention of the police to ignore other heinous crimes in the urban areas. To this end, he said, the Command has made a breakthrough in the arrest of various suspects, including five notorious armed robbers and recovery of fire arms and ammunition as well as a mobile phone.

    He identified the suspects as Mohammed Musa a.k.a Gambo, Shafi’u Hassan, Safiyanu Sanusi, Hussaini Musa and Abdullahi Umar (an informant), while the exhibits recovered are one AK-47 rifle with Breech No. 410267, 2 magazines loaded with 15 rounds of live ammunition and Techno T61 handset.

    The police again on the 10th August, 2019 received a report that a rifle with Breech No. 410267 with 2 magazines loaded with 16 rounds of live ammunition, three cell phones and the sum of  N28,000 belonging to one Madugu Umar, an operative of the Nigeria Custom Service, were stolen inside his room at the Custom Barrack. It was the same rifle that was said to have been used to commit an armed robbery at Rock Church Hayin Buba area, Gusau on August 16. The police swung into action upon receiving the information and launched a manhunt immediately.

     

    Disarmament in view

    This disarmament programme started recording steady progress when bandits and militia group surrendered about 100 different brands of rifle to the police. Both sides of the militia group were said to have amassed weapons for different purposes. While the bandits were said to have acquired their weapons mainly for cattle rustling and defence of the Fulani race, the “Yansakai” were said to have acquired light weapons to defend their farmlands, cattle and villages against the bandits and other related violence.

    “When the battle line was drawn, the weapons were used to cause havoc, destruction, deprivation of freedom, stealing and other forms of negative tendencies,” Nagoggo said, stressing that their decision to surrender their weapons was borne out of trust, confidence and absence of stigmatisation on the part of the committee responsible for the disarmament programme.

    In all this, he said, the energetic and intellectual capacity of the Zamfara State Government played a key role, because it enabled both sides of the conflict to see reasons to begin to surrender the weapons. He revealed that Governor Matawalle, in his wisdom and unique sense of humour, was able not only to guide the committee but give it absolute support.

    The committee, according to Nagoggo, had between July 25 and September 5 to receive the rifles and ammunition from bandits. He said the first set of rifles surrendered were brought in by some of the relations of the recalcitrant bandits who refused to toe the line of disarmament and amnesty. “Their patriotic relations were able to silence them, collect the rifles and hand them over to us,” he said.

    The second set, he said, was made up largely of rifles and pistols voluntarily brought in by the bandits themselves as a sign that they had accepted the peace process wholeheartedly. Thus, a total number of 49 rifles were surrendered to the committee by this set in the first batch.

    Nagoggo further revealed that the second category of weapons received by the police were the light weapons received from the local vigilante groups (“Yansakai”), explaining that such weapons do not have breech numbers or any other symbols that could make their identification easy. Yet they are as dangerous as the conventional rifles and the number of lives that had been lost to them could only be imagined,” he added.

    He further revealed that the den guns are of a different caliber; much of an imitation of AK-47, RPG, LMC and other sophisticated weapons described as weapons of mass destruction.

  • In betting and lotto they trust

    Sports betting and Lotto are the latest fad among Nigerians – young and old – With a crushing economy, biting unemployment and under-employment, many Nigerians have seen in betting an avenue to a miraculous turn around, writes JOE AGBRO JR

     

    ADEOLA Akinyele, a hairdresser, is a mother of four. Her husband’s income is far from being able to handle the family’s needs. So, aside making women beautiful, she has adopted betting as a mean of making the much-needed extra cash.

    As a novice in the betting enterprise, she depends on people for “accurate” forecasts.

    “People give me codes with which I play and I just send my girls to go and play for me,” she said.

    Even though her husband detests betting, Akinyele continues to engage in the practice.

    “My husband does not like betting, neither does he like my being involved in the practice. But it does not affect me because commit small money to it. There was a time I won. I have even won N13, 800 once.”

    Another player, Peter (who elected to be identified) sells computer accessories in Ikeja Lagos. He is one of the sports betting die-hards. For him, sport betting is fun, even as he was quick to add that he has not won much.

    Not only does he love to bet on his favourite teams, he also bets on other teams he thinks might win in the day’s game. Win or lose, he never bothers. Not a loser all the time, he wins most times. He was frank to admit that “I actually win sometime but I must confess that I have lost more.”

    For those who engage in it, they depend on the tripod of information, knowledge and luck. Of the three, luck remains the biggest trigger, but a lot of the times, the luck is bad for patrons. That, however, never deters patrons.

    Like opium, it drives those who stake harder, with renewed determination to win next time. Those who regard it as a veritable source of income have no other home. No family. No friend. No business; only staking, betting and more betting.

    They sleep and wake up in betting shops. Left with no choice, or so it seems, to make their marks through labour, many of the nation’s active population drown their frustration in lottery and betting. Here, they pray before staking their last pennies, and wish God to grant them the luck to win something, with which to patch the pangs of hunger and lack.

    Inside a betting shop located on the first floor of a shopping mall in Ikeja, Lagos, about 20 such young men mill round two flat screen television sets. Their gaze was glued to the matches being placed. The outlet itself was a full measure of about 20 feet by 20 feet. None minded that they are taking in one another’s breath. For some who have staked, their life depended on that match. So they follow the deft moves of the players, hissing at the near misses as the ball either hits the upright or goes over the bar. As the game progresses more people strolled in and they make for the two tellers to wager their stakes.

    Two sets of football matches were being beamed from the two television sets. As the players chased the ball across the pitch, the atmosphere was humid and the air conditioner did not do enough work to ward off the tension. The tension is expected as various outcomes of the game will mean a win or loss for the ‘stakers’.

    Two persons were sprawled out, dozing off on a plank, while two bettors engaged the tellers seated behind a cage. They both gave the teller a paper on which they have written their winning codes. They told the tellers it is too sure to win, and they staked their money with smile.

    In exchange, the teller punched the code into a computer and in a short while, handed back to them their betting slips. They soon left, promising to return by 4pm to claim their wins.

    Betting goes on round the clock in Nigeria. While activities in physical betting shops may close by 8pm, (some have extended to 12 am), with the support of technology, a smart or android phone, betting goes on round the clock, with people winning or losing their stakes every hour.

    Welcome to the gaming world, where men, based on their informed knowledge or outright ignorance, wage a bet hoping on the gods of luck to deliver to them earnings far above their stakes, some extra cash to cushion the stark realities of lack.

    In the Southwest, many throng the lotto shops, which are usually a make shift space. What you needed is just a table and chair. Agents are supplied the lotto machine, and ‘stakers’ come, play, collect their tickets and go. They return, based on their ‘stakings’, either every hour or full day, to know if they win or lose. While winners gloat, and play more, losers are comforted that victory is just another stake away. Locals call it Baba Ijebu, in deference to the pioneers of the trade, who are of that shrewd Yoruba stork.

    Plotting, winning and losses

    Today, Nigerians’ penchant for betting has grown in leaps. According to an April 2019 report by ResearchAndMarketing.com, the Nigeria’s betting industry is worth $2 billion.  In 2014, a News Agency of Nigeria (NAN) investigation revealed that 60 million Nigerians between 18 and 40 years of age may be spending up to N1.8 billion on sports betting daily. And a 2016 KPMG report revealed that a leading sports betting company in Nigeria makes an average monthly turnover of $10 million. But while recent figures are not available, with the growing trend where more youths mill around sports betting halls, it is likely this figure has risen, and more money are streaming in for betting companies.

    A recent press release by NOI Polls said that ‘gambling is becoming very popular in the country’ and identified the Southwest and Southsouth as regions that ‘gamble’ most. The poll showed that prevalence of betting and gambling was highest amongst respondents in the South-West (92 percent) and lowest in the Northwest (57 per cent). Prevalence figures in other regions are; Southsouth (91 per cent), Northcentral (84 per cent), Southeast (82 per cent) and Northeast (58 per cent).

    According to Alexa, www.bet9ja.com, owned by KC Gaming Ltd, is the number two most visited website after Google and visitors spend an average of 12 minutes on the website daily.

    To lure new customers, betting companies usually offer several bonuses. For instance, there are bonuses for first time bettors or returning bettors while some offer return on losses.

    However, it is not only football that is being betted on. Other games patrons wager a bet on are horse racing, basketball, volleyball and many other sports. In fact, there is betting ongoing for the Big Brother Naija which incidentally is being sponsored by Bet9ja.

    Sports betting versus Lotto

    However, not everyone likes the sports betting for reasons ranging from being thought of as a scam to lacking the basic understanding for how stakes are played. Unlike the sports betting that requires some understanding of whatever game is being played so as to maximise stakes, for the lotto, it is heads-on luck. As the odds for lotto are greater, so also is the reward.

    A sports betting agent, Adeniran Bisiriyu, who has four betting shops in Agege, Lagos, started lotto business over two decades ago and incorporated sports betting to his business in 2009/2010. Presently, an agent of Bet9ja, 1960Bet and Western Lotto and other lotto games, Bisiryu said agents can earn between 10 percent and 15 percent, depending on the arrangement between the agents and the betting companies.

    He also said more people favour playing lotto to sports betting because they find it less complex.

    “Novice easily comes into the business either as an agent or as a staker. But in sports betting, you must know something a little. You know, operating phones is one of it. Then, even choosing teams is another thing. So, if you’re not so conversant with football, you may not be able to participate in sports betting. But in lotto, even market women do play lotto. So, you can from that angle reason that lotto business is far more lucrative and have more stakers. When you look at the percentage of people, lotto still takes a larger part of peoples involvement because novice do play it. Even, people just choose numbers without forecasting. But when you talk about sports betting, you must know teams, you must know their weak points and strong points before you begin to bet on them. With the lotto, they can just pick lucky numbers from anywhere. Even women and illiterates can play it,” said Bisiriyu

    Popular lotto games which started from Ghana and are drawn in Ghana include Monday Special, Lucky Ghana, Midweek, Fortune, Bonanza and National which are played on Monday to Saturday respectively.

    There are many versions of Nigerian lottery games too which include games such as Enugu, Bingo, Jackpot, Metro, Premier King and Premier Royal. However, Bisiriyu said Lagosians like to play Ghana games “because they have belief they (games) cannot be easily manipulated.”

    Another staker, Johnson Agbekorode, who lives in Ibeju-Lekki, Lagos favours lotto to sports betting.

    “I think sports betting is a scam. I prefer to play ‘Baba Ijebu’ (lottery) than sports betting,” he said.

    Some recent winners of sports betting include Saheed Oniloyi and Olashile Ali who won N8 million together via Bet9ja with a N400 stake. Also, Arinze Cosmas Ezeanyanwu, a truck pusher, won N36 million via Bet9ja in 2017. In 2018, Joseph Vincent Achuku, who reportedly won about N11 million in Bet9ja in Nasarawa was found murdered, only days after.

    And while some winners emerge from the lot in Nigeria, the glamour and attraction of sports betting continues as betting companies use football veterans like Victor Ikpeba (Bet9ja), Kanu Nwankwo (SportyBet) and Jay Jay Okocha (BetKing) as brand ambassadors may draw in more bettors.

    Surebet’s Digital Marketing Manager Olayinka Bolaji said the firm was able to weather the storm, being one of the oldest in the industry. He said the highest amount won on Surebet is N25 million.

    “We have had people winning N10 million, N5 million, N3 million and so on.  If I can recollect, I know we have paid up to N25 million for a single win.  We have paid up to N10 million as well,” he said.

    With these crowd pulling football ambassadors, the game of betting is assured of a life stream and the game goes on.

    Regulatory bodies

    The National Lottery Regulatory Commission (NLRC) was established through the National Lottery Act of 2005 to regulate the lottery business in Nigeria. In 2015, the NLRC started regulating the sports betting category. Other states also set up their own regulatory authorities. Presently, 11 sport betting companies are licenced by the NLRC while the Lagos State Lotteries Board which commenced operations in 2005 licenced 17 sport betting companies to operate.

     

     

    Why people go into betting, by psychologist

     

    A MEDICAL psychologist at the Lagos State University Teaching Hospital, Dr. Leonard Okonkwo, opined that it was not surprising that Nigerian youths are embracing betting.

    “There is a high level of poverty in the land,” he said.

    He went on: “And then people are generally hoping for miracles, dreaming that their situation would be changed overnight. And don’t forget that Nigeria is basically a very religious society where we believe that things can change overnight without much hard work. What the betting companies do, is to cash in on the frustration and religiosity of the people for the hope that things can change overnight and say this is one way that things can change overnight – put in N200 and you get N2m. And then, the idea is that what you’re putting in seems not to be too much that you cannot part with, but the thing is the more you do it, the more you feel you can’t just let go until you get it.

    And you don’t realise how much you have put in because you’re putting it in small bits – N2000, N1000 – things that are so small compared to the dreams that you have that you might just be the next millionaire. That is actually the psychology that these bet houses play on the mind of the people who are ‘victims’ of this betting game.”

    Additional reports: Tajudeen Adebanjo

  • How Nigeria can keep the lights on, by experts

    What is wrong with the power sector? Will tariff increase do the magic? Experts discussed these and more at the Power Nigeria Agenda conference and exhibition, which had several dignitaries and government officials in attendance. Deputy News Editor JOSEPH JIBUEZE reports.

     

    Some recommendations

    • Synergy among value chain players critical
    • More investments needed
    • Develop electricity-focused mutual funds/collective investment schemes
    • Enhance customer relations to reduce unpaid bills
    • Close sector’s financial gap, clea r legacy debt, inject private funding
    • Exploit alternative energy sources
    • Meter all consumers before tariff increase
    • Sustainable model for energy production, consumption needed

     

    DESPITE being the largest economy in sub-Saharan Africa, Nigeria’s economic growth has been constrained by power sector limitations.

    The country is endowed with large oil, gas, hydro and solar resource, with the potential to generate 12,522 megawatts (MW) of electric power from existing plants.

    However, it is only able to generate between 4,000 to 7,000 megawatts (MW), sometimes below 4,000 MW, which is grossly insufficient.

    The problem has been attributed to challenges in the generation/distribution chain.

    In a bid to address it, the Federal Government divested its interest in the six power generating companies (GenCos), while 60 per cent of its shares in the 11 distribution companies (DisCos) were sold to private operators.

    Despite the privatisation, the Federal Government’s financial intervention in the industry has risen to N1.5trillion, according to Vice-President Yemi Osinbajo. Yet, the problems persist.

    At the 2019 Power Nigeria Exhibition and Conference in Lagos, organsed by Informa Markets, experts said more investments and funding are needed.

    Dangote Industries Power and Energy Strategy Head Dr Damola Omole said merely increasing electricity tariff would not solve the sector’s problems.

    He said consumers should be metered before effecting tariff increase, adding that estimated billing was generally unfair.

    Omole, a penalist in one of yesterday’s sessions, urged the government to intensify efforts to encourage more players to invest in the sector.

    He urged government to look into the issue of supply and cost of gas to the thermal power plants.

    He said there was the need to reduce the over N7.5 trillion lost annually to irregular power supply.

    He was of the view that the country’s manufacturing sector was worst hit by the irregular supply.

    According to Omole, some 17 million small and medium scale businesses spend over N2 trillion annually on generators.

    Omole said: “Manufacturers only get seven hours of supply on average, with the balance of over two-third self-sourced.

    “Grid supply should be 20,000MW for manufacturing sector to thrive, but supply is currently less than 4,000MW.

    “Grid power supply is irregular and unpredictable for manufacturing processes.”

    Omole explained that electricity consumed through alternative means cost N78 per kilowatt while supply from the grid was at N32 per kilowatt.

    This, he said, increases the cost of production for manufacturers.

    Power shortage has a ripple effect, Omole said. It results in reduced production, job losses, and outright closure of factories or relocation to other African countries where power supply is stable.

    The consequences, he pointed out, are job losses and a weak economy.

    Omole said the power sector reforms failed to yield the desired result due to generating companies’ alleged failure.

    He said the lack of synergy among the players in the energy value chain resulted in over 2,000MW of electricity not being supplied to end users.

    Omole also decried the lack of industrial clusters across the country, which he said would have enabled manufacturers compete with their contemporaries.

    He said: “Energy strategy is built around energy efficiencies and this is part of our response as stakeholders to the challenge of moving Nigeria to a more sustainable model for energy production and consumption.

    “The Nigerian power sector requires investment, technical changes and policy dialogues to promote efficiencies.

    “With an integrated view of reducing energy consumption whilst ensuring efficient energy production, the scope of the Nigerian energy strategy will be defined in such a way that the focus on energy generation, distribution and transmission will promote sustainability in the use of energy.”

    Director of Procurement at the Federal Ministry of Power, Ahmed Abdu, an engineer, believes the current power generation capacity as impressive.

    He said: “It is indeed unfortunate that the power sector was neglected in the past.

    “However, when the negative effects of this became evident, the government re-strategised, creating a momentum for improvement in the sector.

    “Investment in the procurement process of the sector has impacted projects in the industry.

    “Our current power generation capacity is impressive, with a distribution network of 5,000 Megawatts and a transmission network of the 7,000 Megawatts of electricity.”

     

    Wanted: more funding

     

    Experts highlighted the need for adequate financing of the energy sector.

    They shed light on the reforms needed in the energy sector to attain its full potential and yield returns on investments.

    They also discussed how lack of access to capital is hindering the electricity sector.

    Also highlighted were frameworks for assisting companies with funding requests, as well as risk mitigation tools in projects or expansions.

    Speakers highlighted the need for electricity-focused mutual funds/collective investment schemes, and how lending rates can be improved.

    Ekiti State Commissioner for Infrastructure & Public Utilities, Bamidele Faparusi, who opened the event on Tuesday, called for collaborative efforts between the government, private sector and end-users.

    Faparusi explained how good customer relationships are essential.

    Using Ekiti as a case study, he said: “Improving the power sector in Nigeria calls for collaborative effort between the government, private sector and end users.

    “Unpaid electricity bills affect the proper running of the sector, hence, a need for DisCos to build trust and maintain good relationships with the end users so as to minimise default in payments and address power issues.

    “In addition, huge financial investments should be made in distribution networks to attain smartness and profitability while regulatory agencies should ensure compliance with stipulated rules and guidelines.”

    FBNQuest Merchant Bank Energy and Natural Resources Head, Rolake Akinkugbe-Filani, said there was a huge financial gap in the sector that must be urgently addressed.

    She said: “The Nigerian Power Sector needs to rid itself of legacy debt of over N300billion if any progress is to be made.

    “There is a need for private funding to be injected into the system and for an urgent shift in the funding landscape from investment banks to SME initiatives.

    “Private sector investment could come in terms of advisory, capacity building for project developers as well as financing for capital projects.”

    The organisers said Power Nigeria Agenda exists to serve the West African and Nigerian energy market, and has become an annual hub for suppliers to meet buyers.

    Informa Market Group Exhibition Director Gareth Rapley said the event was organised to find solutions to the challenges facing the power sector.

    According to him, the energy problem was not peculiar to Nigeria and could be overcome with collaboration between the government and the private sector.

    He said the conference, which ends today, was an opportunity for players in the energy sector to exchange ideas on how best to address the issues confronting the sector.

  • Sanwo-Olu’s unscheduled visit: New vista for public schools

    HOW committed are members of staff of an organisation when not supervised? How can their employer discover loyalty and dedication?

    One of such ways is taking them unawares through unscheduled visits. This exactly, was what Lagos Governor Babajide Sanwo-Olu did last week when he paid an unscheduled visit to Oregun Junior High School in Ikeja. It was during an on-the-spot assessment of public schools in the Centre of Excellence. After interacting with the students, their teachers and the school’s management, the governor promised to make the environment conducive for teaching and learning.

    It was all excitement at Oregun Junior High School in Ikeja last Friday when Lagos State Governor, Mr. Babajide Sanwo-Olu, paid an early morning visit to the school. The stopover was impromptu and short, but it gave the Governor the opportunity to have first-hand experience about operational procedures in state-owned schools.

    Sanwo-Olu, who was returning from Abuja after a meeting with President Muhammadu Buhari, was on his way to his office in Alausa when he stopped by at the school to conduct on-the-spot assessment of its operations, facility and teaching method.

    It was his first unscheduled visit to any public-owned school.

    The Governor arrived at the school a few minutes after the pupils returned to their classrooms, following morning assembly. For about 35 minutes, the Governor moved round the school premises to inspect classes and assess teaching facilities. He checked seven decrepit classrooms in the school, which, he assured, would be rebuilt and equipped with modern facilities.

    Sanwo-Olu also took a JSS 3 and JSS 2 classes on topics in Agricultural Science and Social Studies subjects, during which he emphasised the importance of technology in modern-day farming. He advised the pupils to take their studies seriously and imbibe good behaviour to make their teachers and parents proud.

    In his interaction with pupils of JSS 2 Class, Sanwo-Olu said: “I personally came here unannounced because I want to know what we need to put in place to make you all do well in school. I want to make sure that you get the best education that will make you realise your potential and also make you become leaders from today.

    “I have gone round your school and I have seen all we need to put in place for you to study in a good environment. Everything will be put in place for you, including free meals that we will be introducing to all public schools. But, I want you to face your studies and pass all your examinations at once. I am not saying you should not play but take your studies serious so that you can also be presidents and governors in future.”

    The Governor also urged the pupils not to be discouraged by their attendance of public school, telling them that most of the great leaders they heard their names attended public schools.

    After his engagement with the pupils, Sanwo-Olu went into discussions with the school administrators and teachers. He promised that all the dilapidated facilities in the school would be fixed before the end of the term.

    Commissioner for Information and Strategy, Mr. Gbenga Omotoso, said the Governor’s unscheduled visit to the school was part of the Sanwo-Olu administration’s strategies to reposition the education in the state, pointing out that the Governor’s observation would reinvigorate the government’s education policies.

    Omotoso said such unplanned visit to public organisations would be regular, noting that such would help the Governor to have first-hand information about welfare of workers and operational challenges of public institutions.

  • Electricity market and unfavourable, helpless regulator

    The issues that starve Nigerian Electricity Supply Industry (NESI) of adequate energy supply are becoming complex. Is the regulator helpless? JOHN OFIKHENUA asks.

    There is a cry for help by Nigerian Electricity Supply Industry (NESI) value chain operators. Will the Nigerian Electricity Regulatory Commission (NERC) come to their aid?

    Electricity distribution companies (DisCos) want NERC to intervene over non-adherence to power purchase agreement.

    The Generation Companies (GenCos) asked the commission to come to their aid over what they called arbitrary 0.75 per cent administrative charge that the Nigerian Electricity Bulk Trading (NBET) Company slammed on them.

    The Transmission Company of Nigeria (TCN) has issues with the power distributors. Yet, there has been no policy pronouncement from the regulator.

    The question of why the operations of the 11 privatised electricity distribution companies (DisCos)) are still far from optimum performance does not have a straightforward answer.

    The success of the operation of the electricity market is predicated on the strength of the entire value chain.

    This is why an isolated analysis of the DisCos cannot be plausible as the entire value chain ought to have a very watertight relationship.

    In other words, the three value chains: generation, transmission and distribution are interdependent to the extent that the strength and weakness of one of the sub-sections rob off on the others.

    This was the position of the representative of the Sunday Odutan, who discussed the power supply enigma with The Nation on phone last week.

    Being the Executive Director, Research and Advocacy of Association of Nigerian Electricity Distributors (ANED), which  is the umbrella body of the DisCos, he has become the mouthpiece of the 11 private power firms collectively, except Yola Electricity Distribution Company that its management reverted to the Federal Government.

    He explained that this is so because the operation of the sector is a chain.

    The ANED spokesman, therefore, sought the technical and commercial realignment of the entire power sector to manifest its efforts to the consumers.

    His words: “There is the need of an alignment of the value chain: technical and commercial alignments. If there is problem with generation, it will affect distribution. If there is a problem with transmission it will affect distribution. Performance of one is dependent on the performance of the other. That is why it is called a value chain.

    “The problem of the sector, which include the DisCos, is that there is no alignment. They need to align the value chain. There should be commercial and technical alignment. Technical alignment results when you are generating 10,000mw, you must be able to transmit 10,000 megawatts. You must be able to distribute 10,000mw. Then the commercial alignment is when you are buying electricity at this price, you must not be forced to sell below the cost. That is commercial alignment.”

    Odutan, who signed the publication picked holes in capacity figures that the TCN was showcasing.

    He said: “1. Maximum energy ever transmitted or wheeled by TCN is 4,557mw (even with a peak generation of 5,375mw February 7, (2019) with its tested wheeling capacity of 5,500mw.

    “2. TCN’s claimed transmission capacity increase based on a simulation of 8,000mw remains exactly that, a computer simulation with no real-life application.

    “3. 2,000mw of the available generation of 7,652.6mw remains constrained, largely because of lack of gas, given that 25 out of our 28 power generation plants are fueled by gas, as well as transmission and hydro constraints.

    “4.Electricity distribution capacity has been determined as 11,000MW (Siemens May, 2019 Electrification Roadmap for Nigeria Report).”

    The company’s General Manager, Public Affairs, Mrs. Ndidi Mba said that ANED twisted the National Grid Data and statistics, subtly inferring that there is no load rejection by Discos and that TCN has not been able to deliver the volume of power demanded daily by each Disco.

    She said: “ANED is deliberately out to deceive the good people of Nigeria with misanalysis of a simple data set.”

    Citing an example with the Kano Electricity Distribution Company (Kano Disco), Mbah pointed out that the Disco, on August 22, 2019, Kano Disco nominated to take 310.60MW while the MYTO allocation to Kano Disco was 359.38MW. She pointed out that Multi-Year Tariff Order (MYTO) allocation is a percentage of electricity on the grid that is made available to all the Discos. Discos’ day head nomination is what the Discos say they can off-take out of the MYTO allocation for the next day, while actual consumption is what they eventually take from the available MYTO allocation at the TCN/Disco interface points.

    The TCN put it to the association that “For Kano Disco, even though it is nominated to take 310.60MW, it was able to actually off-take only 154.17MW, leaving a total of 205.21MW representing 57.10 per cent of MYTO allocation to it unutilised.

    “On the same day, Kaduna Disco on the other hand, requested 280.00MW while MYTO allocation to them was 359.38MW, but the Disco actually collected only 166.52MW from TCN substations, leaving 192.86MW equivalent to 53.66 per cent of MYTO allocation unutilised.”

    The challenges that the NESI is grappling with are not limited to the blame game between the TCN and the DisCos.

    The electricity Generation Companies (GenCos) have their own issues impeding their operations. Forty per cent of the power generation capacity has been shut down. With the low demand from the DisCos and TCN’s weak capacity to wheel the available energy, it is obvious that the GenCos are limited to the capacity of the two other value chains.

    With the shutdown of some of the hydro plants in Kanji and Jebba which Mainstream Energy Solution Limited operates and the Shiroro Hydroelectric that is operated by North South Power Limited, the energy generators are at the mercy of whatever decision the TCN and DisCos take since Eligible Customer regulation that ought to have relieved them is yet to take its root firmly. There is a third force within the government circle that is conniving with some operators to thwart the policy that should have allowed the Gencos to bypass the DisCos to supply energy to the customers.

    Only last week, the NERC directed that owing to the forecast of the Nigerian Metrological Agency that there will be ravaging flooding resulting from long duration of rainfall this year,  the three hydro stations  “must run” compulsorily. The commission explained that a major consequence of this meteorological event on the operations of the three hydropower stations (i.e. Jebba, Kainji and Shiroro) has been high rate of reservoir fill-up which poses extreme environmental risks to lives/property downstream from the plants that could result in submerging entire villages along the riverbanks.

    According to NERC, the increasing cost of wholesale energy to distribution licensees in NESI is attributable to the generation mix of dispatched energy. It mandated the firms to operate the plants immediately or in the event of any deviation or non-compliance with the terms of the order, the NERC mandated the SO to compulsorily submit detailed written justification to the Commission within 48 hours.

    Besides, the thermal GenCos, at the weekend, raised the alarm threatening to declare a force majeure.

    Addressing reporters in Abuja, under the umbrella of Association of Power Generation Companies (APGC), the Executive Director, Joy Ogaji, revealed that the NBET informed the GenCos on a new policy that requires the payment of 0.75 per cent charge on each of their transactions.

    According to her, the NEBET claimed that the directive is an order from the presidency.

    She also revealed that the NBET has made the payment of the charges a condition precedent to the release of the N600 billion.

    The said “0.75 per cent administrative charge is compulsory as it is a Condition Precedent (CP) for GenCos to access the N600 billion the Federal Government has approved for immediate payment to gas suppliers and GenCos.”

    In a press conference that she entitled “NBET slams GenCos with 0.75 per cent unregulated administrative charge,” Ogaji described the role of the NBET in the electricity market as a credit worthy off taker created to incentivise private investment in power and act as the buffer to the GenCos.

    She said with this renewed confidence for investors and the promise to provide incentives and the needed comfort by bearing the off-take market and default risks such as liquidity/payment risks, the GenCos invested in the power sector and are, above all odds, keeping to the terms of their contract, generating power in anticipation of the 100 per cent payment promised in the Transition Electricity Market (TEM).

    She recalled that the Federal Government, in its magnanimity, intervened to ameliorate the plight of the GenCos by introducing various instruments to partially pay GenCos for energy delivered while capacities not utilised but made available was unaccounted for. The Federal Government, according to the APGC spokesperson, has once again stepped up and approved the N600 billion as a short term intervention to pay for energy generated and delivered while it resolves the issues faced by other critical players in the NESI .

    Ogaji revealed that in order to assess this fund, GenCos are faced with a bullish behaviour from an agency that is supposed to be representing/protecting their interest.

    In previous situations, they were threatened to sign various obnoxious agreements (Security Trust Deed and PPA Activation agreements or such documents) before they are paid, she alleged.

    The APGC said NBET, on September 13, 2019 issued a letter to individual thermal GenCos directing them to obtain, as a matter of urgency, their respective board approvals or resolutions, bequeathing responsibility for payment of gas and transportation to the respective supply companies for an administrative charge of 0.75 per cent.

    Ogaji said the letter gave each GenCo three working days ultimatum to respond with the board resolution i.e. September 18, 2019 or face non-payment of energy invoices.

    “It should be noted that NBET, like other market participants, is a licensee of NERC and as such is expected to understand that in a regulated market, every expense/cost must be backed by a regulatory approval for effective computation of the market tariffs.

    “The generation companies are not aware that such approvals have been issued by NERC nor is there any policy directive to this effect.

    “The fact that NBET is placing the extortionist 0.75 per cent ‘administrative charge’ on GenCos who are already convulsing in the NESI, is an aberration on the duty of care placed on NBET.”

    The APGC noted that NBET, therefore, needs to come out clean and make known where and when a stakeholders meeting, involving all parties such as the Regulator (NERC), NBET, Gas suppliers and GenCos held to discuss and explore the intricacies of such multi-party transaction before issuing such a directive.

    According to the body, with the introduction of “an additional burden of 0.75 per cent to GenCos, gas invoices payments implies that NBET is looking to rake in a windfall of not less than N2.7 billion as its administrative fees for a service of only collating and submitting invoices to the Central Bank of Nigeria (CBN) that, in effect, makes the payment to GenCos and the gas parties.”

    The GenCos are worried that, according to Ogaji, if NBET is allowed to carry on with this shenanigan for services that are nothing more than being a “delivery truck” since Market Operator (MO) does the major work of preparing the invoices and settlement statement for NBET to pass same to CBN for payment. She noted that NBET, acting only as a “conveyor belt” or “agent” of GenCos funds, is currently paid 2.5 per cent of the total market payments.

    She insisted that the NBET does not have the moral right to receive 100 per cent of its service charge from the Market Operator (MO) while it does virtually nothing to enable GenCos receive their invoices in full.

    To her, what is expected of NBET, as the obligor for the GenCos, is to come up with viable strategies to make the GenCos whole and not to be creating a gaping hole in their limited finances.

    While soliciting government’s intervention, she said: “We will be strongly recommending to the government and other key stakeholders that the administration of the GenCos finances reverts back to the Market Operator (MO) while NBET focuses on engagements with new entrants or intending power project developers.

    “In addition, if NBET gets its way in executing its planned action, it will set in motion a significant precedent that any entity can take up the role of a regulator in the NESI, giving directive without the relevant stakeholder engagement and regulatory (NERC) approval.”

    Ogaji submitted that as it stands, the relationship between the GenCos and other markets participants and agencies of government is progressively becoming a master-slave or master-servant relationship; GenCos being the slaves or servants.

    She said: “It’s unfathomable that any going concern gets paid only 15 per cent of its invoices and yet is expected to perform within the requirement of the performance and other relevant market agreements entered into. The time may just be right for GenCos to declare force majeure and release themselves of all market obligations. Surely, GenCos will remain blameless for taking such actions.”

    Meanwhile, the NBET Managing Director, Dr. Marilyn Amobi, who The Nation asked to respond to the GenCos claim, said via a text message that “I don’t know what Joy Ogaji is talking about.

    “NBET deals with generation companies and has never dealt with Joy Ogaji and her association.”

    NERC noted that it was probing the discrepancy between energy received as reported.

    It is yet to make public its findings.

    Observers believe the challenges will remain until the regulator acts, lest the NESI collapses under its watch.