Category: Special Report

  • Why National Assembly can’t fix election dates, by Falana

    Why National Assembly can’t fix election dates, by Falana

    Activist-lawyer Femi Falana insists the National Assembly erred by reordering the dates for the general elections scheduled for next year by the Independent National Electoral Commission (INEC). The Senior Advocate of Nigeria (SAN) says the National Assembly lacks the power to fix election dates

    Since the return to democratic rule in 1999, the Independent National Electoral Commission (INEC) has conducted the general elections on a two-tier or three-tier basis.

    Even though the National Assembly had attempted in the past to use the Electoral Act to alter the sequence of elections fixed by the INEC it did not succeed. In spite of the ongoing controversy surrounding the sequence of elections, our recent experience as a nation has shown that there is nothing sacrosanct about it.

    In 1999 and 2007, the presidential election came up last while it came up first in 2015.  In influencing the order of elections in 2015, the ruling party had thought that holding the presidential election first would have bandwagon effect on the outcome of the other elections. But the result was a disaster for the ruling party.

    It has equally been confirmed that when elections into the legislative houses were held before other elections in the past, majority of sitting legislators lost their seats.  So, there is no indication that President Muhammadu Buhari stands to benefit electorally from the decision of the INEC to retain the 2015 sequence of elections.

    But notwithstanding the reactions of the presidency and the National Assembly to the sequence of elections announced by the INEC, it is pertinent to review the relevant provisions of the Constitution, the Electoral Act and judicial authorities on the vexed issue.

    In preparations for the 2019 general elections the INEC recently released a timetable for party primaries and the elections into the various offices in exercise of its powers under Sections 76, 116, 132 and 178 as well as paragraph 15 of Part 1 of the Third Schedule made pursuant to section 153 (1) of the Constitution.

    Under the arrangement, the presidential and National Assembly elections will be held on February 16, 2019, while the governorship and Houses of Assembly elections will take place on March 2, 2019.  But in the Electoral Bill 2018 recently passed by the National Assembly, the sequence of the general elections has been altered. The sequence as proposed by the new amendment is (A): National Assembly election; (B): Governorship and State Assembly elections and (C): Presidential election.

    No doubt, the matter has generated a needless controversy to the extent that little or no attention is paid to the other provisions of the Electoral Bill which have the capacity to promote internal democracy and enhance the credibility of the electoral process.

    Perhaps not aware of the state of the law, the INEC has announced its intention to approach the Supreme Court to test the constitutional validity of the Electoral Bill 2018 if it is eventually signed into law by the President. Since there are indications that the President may withhold his assent in the circumstance, the National Assembly has threatened to override his veto.

    Having watched the trend of the debate, it is regrettable to note that the parties involved in the dispute have not studied the decision of the Court of Appeal in the case of National Assembly v. President (2003) 9 NWLR (PT 824) 104 at 143-144. In that case, former President Olusegun Obasanjo had refused to assent to the Electoral Bill 2002 which had been passed by both Chambers of the National Assembly and transmitted to him on June 24, 2002.

    Subsequently, by a motion of veto-override, the National Assembly passed the bill into law. In an originating summons filed at the Federal High Court, the INEC challenged the validity of the passage of the Bill into law and the constitutionality of Section 15 of the Act which had provided that general elections shall be held in one day.

    The trial court held that the Bill was properly passed into law but that Section 15 thereof was inconsistent with Sections 76, 116, 132 and 178 of the Constitution. Dissatisfied with the annulment of Section 15 of the Electoral Act, the National Assembly filed an appeal at the Court of Appeal. On his own part, the Attorney-General of the Federation filed a cross-appeal to challenge the passage of the Bill into law. In its judgment, the Court of Appeal held that the manner of passing the bill into was unconstitutional but declined to set it aside on ground of public policy as the 2003 general elections were being conducted under the law. However, the Court of Appeal affirmed the decision of the Federal High Court on the illegality of Section 15 of the Electoral Act.

    In his contribution to the judgment of the Court, Oduyemi J.C.A (as he then was) stated that “in so far as Section 15 of the Electoral Act, 2002 seeks to fetter that discretion and limit the third defendant to only one day in the year for all elections to the offices concerned, that provision of the Act is inconsistent with the provisions of the Constitution above referred to, and it is to that extent a nullity. Section 1(3) of the Constitution… All in all, I agree with the reasoning in the judgment of the lower court and with the conclusion in the judgment that Section 15 of the Electoral Act, 2002 is inconsistent with the specific provisions of the Constitution of the Federal Republic of Nigeria, 1999 in Section 132(1), 76(1), 178(1), 116(1), 78, 118 and Item 15(a) of the 3rd Schedule: that it infringes upon the absolute discretion vested by the Constitution on the third respondent with regard to the fixing of dates for election into the various offices concerned.”

    However, the National Assembly took advantage of the 2010 Alteration of the Constitution to attempt to overrule the judgment of the Court of Appeal in the case of the National Assembly v. the President (supra). Thus, in the first alteration made to the Constitution, the National Assembly amended sections 132(1), 76(1), 178(1), 116(1), 118 and 178 of the Constitution by adding the phrase “in accordance with the Electoral Act”. Although the power of the INEC to “organise, undertake and supervise” the general elections conferred on it by paragraph 15 of Part 1 of the third schedule made pursuant to Section 153 of the Constitution was left intact, the National Assembly members erroneously believed that they had conferred on themselves the power to fix the dates for general elections in Nigeria. Hence, in the 2018 Electoral Bill, the National Assembly is alleged to have tampered with the discretion of the INEC to fix the dates for the 2019 general elections.

    Apart from the illegality of subjecting the provisions of the Constitution to the Electoral Act, the Alteration of the Constitution did not confer on the National Assembly the power of fix dates for holding the general election in Nigeria. To that extent, the National Assembly cannot use the Electoral Act to usurp the powers exclusively conferred on the INEC to appoint dates for holding the general elections in the country.

    Indeed, the Supreme Court has had cause, after the first 2010 Alteration of the Constitution, to confirm the discretionary power of the INEC to fix the dates for holding the general elections.

    In PDP V. SYLVA (2012) 13 NWLR (PT 1316) 85 the respondent challenged the decision of the INEC to cancel and reschedule the 2012 governorship election in Bayelsa State. In dismissing the contention the Supreme Court (per Rhodes Vivour JSC) held that ‘’INEC has the sole responsibility to fix dates for election and to my mind if INEC fixes a date for elections and for whatever reason, be it logistic, I do not think anyone has a cause of action against INEC for canceling an election (not held) and rescheduling elections for another day’’.

    Similarly, in NDP V INEC (2013) 20 WRN 1 at 45 the Supreme Court (per Ariwoola J.S.C.) held that “it is not in doubt that the Independent National Electoral Commission (INEC) that is, the respondent has the sole responsibility to decide when elections are to hold. See Peoples Democratic Party v Timipre Sylva & Ors (2012) 13 NWLR (Pt 1316) 85 at 122.

    The respondent also reserves the prerogative to decide what Timetable to of Activities to publish for a General Election.”

    Furthermore, in Hon. James Abiodun Faleke v INEC (2016) 50 WRN 1, the Supreme Court reiterated the view that by virtue of paragraph 15 of Part 1 of the Third Schedule made pursuant to Section 153 (1) (f) and (i) of the Constitution, the Independent National Electoral Commission has power to organise, undertake and supervise all elections to the offices of the President, Vice President, the Governor and Deputy Governor of a State and the membership of the Senate, the House of Representatives and the House of Assembly of each state of the federation.

    No doubt, the National Assembly would have achieved its objective if it had incorporated the sequence of the general elections in the Constitution. But by providing that the INEC shall fix election dates “in accordance with the Electoral Act”, the interference in the exercise of the discretionary power of INEC’s constitutional power to fix the dates for the elections cannot be justified in law.

    As far as the constitution is concerned, the power of the INEC to organise, undertake and supervise the elections which has been interpreted to include the power to fix the dates for the general elections or determine the sequence of the elections has not been altered in any material particular.

    It is the height of legislative absurdity to say that the power donated to the INEC by the Constitution shall be exercised in accordance with the provision of an interior legislation.

    In Attorney-General, Abia State v. Attorney-General of the Federation (2002) 1 WRN 1 at 45 Kutigi CJN (as he then was) held that “where the provision in the Act is within the legislative powers of the National Assembly but the Constitution is found to have already made the same or similar provision, then the new provision will be regarded as invalid for duplication and/or inconsistency and therefore inoperative.

    The same fate will befall any provision of the Act which seeks to enlarge, curtail, or alter any existing provision of the constitution. The provision or provisions will be treated as unconstitutional and therefore null and void.”

    From the foregoing, it is submitted that the interference in the exercise of the powers of the INEC to appoint dates for holding the general election in Nigeria is illegal as the provision of the Electoral Bill 2018 is inconsistent with Sections 76, 116,132 and 178 of the constitution. To the extent of such inconsistency, the provision of the Electoral Bill is illegal, null and void as stipulated by section 1 (3) of the constitution.

    In other words, since the INEC has been empowered to organize, undertake and supervise all elections the National Assembly cannot rely on the provision of the Electoral Act to usurp the powers of the INEC to fix the dates for the elections.

    In view of the settled position of the law the INEC should not waste public funds by rushing to the Supreme Court to contest its own constitutional duty to organise, undertake and supervise the 2019 general elections.

     

  • $2.5b Eurobond: Raising cheaper funds, cutting debt service costs

    $2.5b Eurobond: Raising cheaper funds, cutting debt service costs

    The Federal Government has valued its offering of $2.5 billion dual series Eurobond Note, comprising a $1.25 billion 12-year series and a $1.25 billion 20-year series, at the rates of 7.143 per cent and 7.696 per cent. The offering is expected to close on February 23, subject to the satisfaction of various customary closing conditions and the proceeds used to refinance domestic debts. COLLINS NWEZE writes that the Eurobond offer – Nigeria’s fifth issuance – would assist the country in achieving an optimal mix between domestic and international debts. It will, besides, reduce debt service cost.

    Since its first bite at the benefits of foreign capital in 2011, Nigeria has remained a regular patron of the International Capital Market (ICM).

    Besides coming at an attractive interest rate, borrowing from the ICM emboldens the domestic economy and offers opportunity for private companies to source funds from global investors.

    The recent announcement by the Federal Government to raise $2.5 billion via Eurobond to refinance domestic debts and reduce its soaring debt service costs has been seized as another opportunity for global investors.

    The issuance of the Eurobond was part of the public debt management strategy carefully-crafted by the Debt Management Office (DMO) to acess the ICM to diversify the country’s source of funding its developmental programmes as well as introduce the country into the highly disciplined international funds markets.

    It all started in January 2011 when Nigeria made its debut in the ICM through the issuance of $500 million 10-year Eurobond. Since then, the confidence of investors in Nigeria’s bond has been on the increase. Most of the funds previously generated were used to upgrade power infrastructure, which the country badly needs for its economic growth and development.

    The DMO has been advising government on terms and conditions of loans, restructuring and refinancing while maintaining a complete and accurate database of all government borrowings among other roles.

    It was therefore a welcome development when the Federal Government after consulting with global investors last week, announced that it has priced its offering of $2.5 billion aggregate principal amount of dual series notes under its Global Medium Term Note Programme. The notes comprise a $1.25 billion 12-year series and a $1.25 billion 20-year series.

    The 12-year series will bear interest at a rate of 7.143 per cent. The 20-year series will bear interest at a rate of 7.696 per cent, and, in each case, will be repayable with a bullet repayment of the principal on maturity. The offering is expected to close on or about February 23, 2018, subject to the satisfaction of various customary closing conditions.

    According to the DMO Director-General, Ms. Patience Oniha, the Federal Government intends to use the proceeds of the notes for the refinancing of domestic debt. The notes represent the country’s fifth Eurobond issuance, following issuances in 2011, 2013 and two last year.

    Ms. Oniha said the offering has already attracted significant interest from leading global institutional investors with a peak order book of over $11.5 billion.  When issued, the notes will be admitted to the official list of the United Kingdom Listing Authority and available to trade on the London Stock Exchange’s regulated market.

    According to the DMO chief, Nigeria may apply for the notes to be eligible for trading and listed on the Nigerian FMDQ OTC Securities Exchange and the Nigerian Stock Exchange (NSE).

    She said: “With the successful pricing of our fifth Eurobond, Nigeria’s status as an Issuer of Eurobonds with a strong and diverse investor base has been further consolidated.  This time, Nigeria has priced a new 12-year bond at a yield of 7.143 per cent and a 20-year bond at a yield of 7.696 per cent, both of which are consistent in price with our existing portfolio.

    “I am particularly pleased that the issuance will enable us to refinance a portion of our existing domestic debt portfolio, with external debt at considerably lower cost.

    “The impact of the process has already led to a reduction in the cost of domestic borrowing. And so, a double benefit for the cost of our broader debt portfolio. Lower domestic rates will also benefit corporate borrowers.”

    Speaking on the offer, Finance Minister Mrs. Kemi Adeosun said the pricing was determined following a series of short meetings and conference calls with investors.

    According to her, Nigeria is focused on reducing the cost of our debt portfolio and ensuring we have the optimal mix between domestic and international debt.

    Ms. Oniha said: “The proceeds of the issuance, which would supplement the issuances we completed in 2017, will be used to re-finance domestic debt, which is high cost and short term, with lower-cost international debt, with a longer tenure. We will have a range of Eurobonds in issue, encompassing 5-year, 10-year, 12-year, 15-year, 20- year and 30-year bonds, giving investors a full basket of options to participate in.”

     

    Nigeria’s foray into ICM

    The government has sold dollar bonds twice – the first was in 2011 when it raised $500 million through Eurobonds and subsequent two issuances in 2013 when it raised $1 billion of five and 10-year debts to finance budget deficits.

    The country has constantly enjoyed good patronage from international investors. For instance, $1 billion Eurobond offer held in February 2017 was oversubscribed by nearly 800 per cent.  The $1 billion Eurobond was issued at 7.875 per cent yield and 15-year tenor to support infrastructural developments in road, railway and power. The oversubscription surprised not a few pundits. The offer, which comes at $200,000 denominations and multiples of $1,000 denominations, will mature on February 15, 2032, with Citigroup Global Markets Limited and Standard Chartered Bank. Stanbic IBTC Capital is the Financial Adviser.

    A currencies’ analyst at Ecobank Nigeria, Olakunle Ezun, said the oversubscription of the bond reflected continued confidence in the country’s economic prospects despite exchange and inflation rates challenges.

    Ezun said fund managers dominated the allocation of the bond with United States (U.S) investors accounting for most of the demand.

    He said: “For some of us that believe in Nigeria, people think that we are joking. Despite the inflation and exchange rate worries, Nigeria was still able to get a good bargain. It gives me the hope that the economy will soon rebound.”

    Explaining how overdependence on crude oil has robbed the country of many opportunities, he said: “All we need to do is just diversify the economy from crude oil. If we had used the oil revenues efficiently, we should not be importing fuel and the savings from that alone will lift the economy speedily.”

    Ezun said that with an estimated 190 million population and good demographics, Nigeria remains a savvy investors’ destination.

    Former Keystone Bank Executive Director Richard Obire, said the risk of investing in the country was still low, and the Organisation of Petroleum Exporting Company (OPEC) and non-OPEC countries have been co-operating to moderate the prices of crude oil.

    The DMO said Nigeria’s low debt to Gross Domestic Product (GDP) ratio meant that the country can borrow more to fund its budget, infrastructure and other essential projects that will stimulate the economy and create jobs.

    The floating of the Eurobond is part of the planned Federal Government’s Medium Term Note (FGMTN) Programme (2016 to 2018) and it is expected to help the government bridge deficit in this year’s budget.

    The Director-General of West African Institute for Financial and Economic Management (WAIFEM), Prof. Akpan Ekpo, explained that budgetary allocations alone may not be enough to finance the country’s infrastructure deficit.

    He said: “With the current political will to tackle corruption and the desire to find a solution to the infrastructure problem in the country, there is need to channel fresh investments into power supply, roads, the railway and other social amenities.”

    To him, the continued slide in government revenues, its plan to provide tangible assets like housing, power (electricity), transport, education, communication, and technology, may be hampered by paucity of funds. Hence, the need to borrow from the global capital markets to fund key projects.

    Other analysts urged the government to focus more on external borrowing, and less on local borrowing, insisting that the foreign debt is cheaper. Describing borrowing as not a bad idea, they advised that borrowed funds must be used for infrastructure and raise the competiveness of the economy.

    They stressed the need for adequate monitoring to ensure that borrowed funds were deployed to projects they were meant for.

     

    Eurobond issuances

    Nigeria is not alone in the Eurobond race. Many African countries have successfully raised cash from the ICM. This issuance of Eurobonds has gained momentum in recent years as countries seek to lock in favourable rates from the market.

    For Nigeria, the successful issuances of three Nigerian Sovereign Eurobonds in the ICM, one in 2011 and two in 2013 – have opened the window for the private sector to raise the required foreign currency funds.

    Local banks and other companies are now able to fund long-term real sector projects in agriculture, manufacturing, housing, mineral exploration and processing, infrastructure for diversified and sustainable economic growth towards employment generation and poverty reduction.

    Afrinvest West Africa Limited Managing Director Ike Chioke said contrary to the sell-offs recorded in the local bond market the previous week, sentiment was bullish last week as yields trended 12 basis points lower Week-on-Week to an average of 13.8 per cent across tenors at market close on Friday on the back of improved investor appetite. The rate at the local bond market is therefore far higher than the rates at the ICM.

    Chioke said the government announced the pricing of its $2.5 billion dual tranche Eurobond offering to complete the $5.5 billion external debt programme approved by the National Assembly last year.

    He said the pricing was largely successful as both instruments offered (12-year and 20-year series) drew impressive buying interest from leading global institutional investors with a peak order book of over $11.5 billion.

    The Afrinvest chied said the proceeds from the Eurobond issuance would be used to refinance relatively expensive short-term domestic borrowings as the government plans to achieve an optimal mix of domestic and foreign debt and reduce overall debt servicing cost.

    Chioke said the impact of the debt refinancing, coupled with declining inflation rate and stability in forex rate, is anticipated to continue to anchor yield expectation lower in the near term and reduce crowding out of private sector borrowers.

     

    DMO’s perspectives

    Investors, hungry for higher returns in a low interest rate environment, reckon that Nigeria’s benign debt levels, recovering foreign exchange reserves and a potential yield above seven per cent, as reasons for investing in the country.

    Ms. Oniha attributed the success to foreign investors’ appetite for Federal Government’s instruments.

    The DMO chief, who oversaw the successful issuance of the country’s first Sovereign Sukuk of N100 billion, gave further details.

    She said: “The DMO had for several years raised funds for the government largely in the domestic market through Federal Government of Nigeria (FGN) Bonds and Nigerian Treasury Bills (TBs), and to a limited extent, from external sources mainly the multilaterals.”

    She explained that while this had a beneficial effect of developing the domestic debt capital market, the government became the dominant issuer to the extent that it has been regularly accused of crowding out the private sector.

    Ms. Oniha said: “The outcome was obviously not intentional, but to remedy the situation. The DMO deemed it fit to shift some of the borrowing activities to the international financial markets.

    “This is also in line with its debt management strategy of achieving a portfolio mix of 60 per cent domestic and 40 per cent external. Through the strategy, the share of domestic debt has been brought down from over 85 per cent to 77 per cent as at September last year.”

    Speaking on the benefits expected from borrowings, she said: “The DMO’s role in financing budget deficits as provided in Annual Appropriation Acts (AAA), are to support budget implementation and the attainment of the government’s economic targets”.

    She said the fresh borrowings from the ICM will not, in any way, worsen the nation’s debt burden.

    She said: “I want to re-assure Nigerians that the government’s borrowings are pre-approved by the executive and legislative arms of government and are used to finance various activities of the government as appropriated.

    “These layers of approvals ensure that the borrowings are both necessary and scrutinised before the DMO embarks on actual borrowing.

    “The increasing focus by the current administration of using borrowed funds for infrastructural development is a step in the right direction”.

    She further explained that as borrowing is deployed to infrastructure to promote economic growth, the benefits of job creation and increased production among benefits are good for all Nigerians.

    “Interestingly, government’s revenue is now being given proper attention. The measures to increase revenues are already yielding some results, and as this trajectory continues, the need for borrowing is expected to reduce while debt service will become an increasingly smaller portion of revenue,” the DMO chief said.

  • Kogi West Senatorial poll: NJC panel probes judge

    Kogi West Senatorial poll: NJC panel probes judge

    •Asks Senator Adeyemi to produce call logs
    •Panel may summon Saharareporters publisher

    A three-man panel of the National Judicial Council (NJC) at the weekend began investigation into the conduct of a judge, Justice Akon Ikpeme of the Cross River State High Court.

    The judge is being investigated for alleged bribery compromise with the senator representing Kogi West zone, Dino Melaye, when she handled election petition case in 2015.

    The panel also took evidence from a former Chairman of the Senate Committee on Federal Capital Territory (FCT), Sen. Smart Adeyemi and the Chairman of the Civil Society Network Against Corruption, Olanrewaju Suraju.

    But the panel, headed by the President of the National Industrial Court (NIC), Justice Babatunde Adeniran Adejumo, gave a two-week deadline to Adeyemi to produce call logs of purported telephone conversations between the judge and Senator Melaye.

    There were indications that the panel may invite the publisher of an online publication, Saharareporters or any of its representatives, to testify on the tape it aired on its channel alleging conversation between the judge and Melaye.

    According to findings, the NJC raised the panel following petitions to it by both the Civil Society Network Against Corruption and Adeyemi.

    Investigation revealed that for about four hours at the NJC Conference Room, the panel heard from the petitioners and the judge who maintained her innocence at the session.

    She denied any telephone conversation on alleged dollar bribe between her and Melaye.

    A reliable source, however said: “There were two issues which were tabled before the panel on the purported conversation between Melaye and the judge.

    “The issues bordered on the judge’s alleged demand for bribe in dollars from Melaye and assistance from Melaye to use his influence to assist her ‘daughter’ secure a job at the Cross River State Ministry of Health by prevailing on Governor (Sen) Ben Ayade.

    “While the judge claimed that the voice allegedly identified as hers might have been technologically cloned, Adeyemi asked the panel to ask the relevant service provider to make the call logs of the judge and Melaye available as appropriate.

    “But upon enquiries from the defence lawyers (two Senior Advocates of Nigeria) and the panel, Adeyemi promised to produce the call logs within two weeks.

    “The panel may also invite Saharareporters and other television stations which aired the alleged conversation between the judge and Melaye.

    “The fate of the judge will be known in two weeks’ time based on the evidence tabled before the panel.”

    The Civil Society Network Against Corruption petition before the NJC reads in part: “An online based newspaper, Sahara Reporters reported and published a supposed voice conversation on the 30th day of May, 2017 of how Senator Dino Melaye representing the Kogi West Senatorial District compromised Justice Akon Ikpeme, the tribunal judge who handled his election petition case in 2015.

    “The said report claimed that the alleged corrupt communication between the duo was captured on tape which has gone viral on social media.

    “In the said recordings, which capture the telephone conversation between Justice (Mrs) Akon and Mr. Melaye, at two different times, the judge is overheard asking Mr. Melaye to give her a bribe in US dollars.

    “She also sought Mr. Melaye’s assistance for a person he repeatedly referred to as her ‘daughter’ secure a job at the Cross River State Ministry of Health, with the Senator reassuringly bragging that he had already spoken to the State Governor, Prof. Ben Ayade.

    “It is worth noting that sometime in 2016, Justice Ikpeme dismissed a petition by Smart Adeyemi, Mr. Melaye’s opponent at the 2015 Kogi West Senatorial District election. In accordance with the plot of reaffirming the alleged electoral infractions associated with the emergence of Mr. Melaye, the election tribunal, in spite of the fact that only Senator Melaye retained his seat as a Senator in the state, the other two senators elected under same circumstances as Mr. Melaye were nullified by the tribunal.

    “In view of the gravity of the allegations viz- a- viz the recent allegations of bribery against the said Senator Melaye, as evident in the voice contained in the leaked audio recordings, we urge you to urgently commence high-powered investigation by a team of forensic experts and investigators into these allegations to assuage the growing diffidence of the citizens in the fight against corruption.”

  • Scientists use microbes to convert human waste into space food

    Scientists use microbes to convert human waste into space food

    Scientists have found a potential food source for astronauts, using microbes to convert human waste into Marmite-like food, local media reported.

    This is contained in their study published in the quarterly scientific journal Life Sciences in Space Research by Professor of Geosciences, Christopher House and Director of the Penn State Astrobiology Research Centre.

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    According to British online newspaper, The Independent, researchers at Pennsylvania State University outlined a method to break down solid and liquid waste for producing protein and fat-rich substance from human waste.

    “We envisioned and tested the concept of simultaneously treating astronauts’ waste with microbes while producing a biomass that is edible either directly or indirectly, depending on safety concerns,” they said.

    “It’s a little strange, but the concept would be a little bit like Marmite or Vegemite, where you’re eating a smear of microbial goo,” the professor added.

    Food supply is a major hurdle when planning lengthy space flights.

    Recycling waste into nutritious food is one solution to this problem.

    According to House and his colleagues, the method involves anaerobic digestion, a process that refers to the breakdown of materials in the absence of oxygen.

    It is considered an efficient way of breaking down biodegradable matter.

    The researcher said while their method is not ready for application yet, it provides a new model for creating food on board spacecraft.

    “Imagine if someone were to fine-tune our system so that you could get 85 per cent of the carbon and nitrogen back from waste into protein without having to use hydroponics or artificial light,” said House.

    Xinhua/NAN

  • UN chief issues 2018 ‘red alert’ to the world

    UN chief issues 2018 ‘red alert’ to the world

    United Nations (UN) Secretary-General Antonio Guterres has issued “a red alert for the world” in the New Year.

    In his New Year message, Guterres expressed regret that in 2017, the world went in reverse to the appeal for peace.

    He said when he assumed office one year ago, he appealed for 2017 to be a year for peace.

    Guterres said: “On New Year’s Day 2018, I am not issuing an appeal. I am issuing an alert – a red alert for our world.

    “Conflicts have deepened and new dangers have emerged. Global anxieties about nuclear weapons are the highest since the Cold War.

    “Climate change is moving faster than we are. Inequalities are growing.

    “We see horrific violations of human rights. Nationalism and xenophobia are on the rise”.

    As the world begins 2018, the UN chief called for global unity.

    Guterres added that he truly believed we could make our world more safe and secure.

    “We can settle conflicts, overcome hatred and defend shared values. But we can only do that together,” he said.

    The UN chief urged leaders everywhere to make this New Year’s resolution: “Narrow the gaps. Bridge the divides. Rebuild trust by bringing people together around common goals.”

    Guterres, who assumed office on Jan. 1, 2017, stressed that in 2018, “unity is the path” adding, “our future depends on it.

    “I wish you peace and health in 2018. Thank you. Shokran. Xie Xie. Merci. Spasiba. Gracias. Obrigado,” the ninth UN chief said

  • Enter the year of politics, sports

    It’s a new dawn and new challenges over the next 12 months. Deputy Editor (News) ADENIYI ADESINA examines the issues that are likely to shape the world this year.

    Welcome to the year of politics and sports.

    There will continue to be diplomatic tussle on the world stage for economic and military superiority. There will be scientific discoveries; climate change will still be dominant as usual in spite of the United States (U.S.) pulling out of the Paris Agreement but politics and sports will take the centre stage this year.

     

    North Korea

    North Korea and its eccentric leader Kim Jong Un will remain on the front burner. The ‘Rocket Man’ is believed to be getting set to fire another missile this month in spite of protestation from all including its ally, China.

    From Hockey World Cup in India to the Commonwealth Games in Australia, the winter Olympics in South Korea – amid the fear of the North Korean nuclear threat – to the football World Cup, the single largest sport fiesta, holding in summer in Russia, sport is it.

     

    Sports

    The June World Cup will be one of the two important events holding in Russia this year. The second is the general election in March. President Vladimir Putin will get another six-year term on completion of which he will become the longest ruler in Russia’s modern history.

    It’s a new dawn in Liberia. Former World’s best footballer George Weah, will take office as President after a landslide victory in a second round ballot against Vice President Joseph Boakai.

    Nigeria will be full of action because the politicking for the 2019 elections will take place this year. The elections are billed for next year’s February and March.

    Party primaries to pick candidates and the stumping will happen this year as the opposition Peoples Democratic Party (PDP) after regaining its groove with a relatively successful convention, gears up to dislodge the ruling All Progressives Congress (APC) from Aso Villa.

     

    Ekiti, Osun governorship polls

    Governorship elections are billed for mid-year in two south west states – Ekiti and Osun.

    Governors Ayodele Fayose (Ekiti) and Rauf Aregbesola (Osun) are ineligible to contest. A grueling battle for the top positions is predicted. The governors won’t find it easy to instal successor.

    No doubt, the elections will be rancorous and the two major parties will be stretched thin. Already, the scramble to be standard bearers is fully on course.

     

    Cuba

    History will be made in Cuba where power will change hands from a Castro to another person for the first time in 58 years.

    After two unsuccessful attempts, Fidel Castro, supported by his brother Raul and other radicals, took over the reins after President Fulgencio Batista fled the country in 1959.

    Many Cubans never knew any other ruler than a Castro because revolutionary leader Fidel Castro loomed so large until he was bedridden and had to vacate office in 2008 for his brother and long-standing deputy, Raul.

    Raul was head of the armed forces and defence minister before he became Fidel’s deputy and successor-designate.

    It is to Raul’s credit that socialism was reformed and there was a thaw in the frosty relationship between Cuba and the U.S. to the extent that they have restored diplomatic relationship.

    The 86-year old is stepping down after two terms of 10 years.

     

    Trump

    President Donald Trump will know how much he has impacted his people with his’ America First’ and ‘Make America Great’ slogans,  when the mid-term elections are held in the United States in November. It will be a referendum on his presidency.

    Many senatorial and House seats will be up for contest as well as some governorship seats. The teaser to what is to come is Trump’s Republican loss of an Alabama senate seat to the Democrats for the first time in 25 years.

     

    South America

    South American countries will get new leaders after elections across the major countries of that continent.

    Brazil, which has been bedeviled by political crises and allegations of graft against its political class, will elect a president in October following Mexico’s presidential poll in July.

    How do you handle Trump? That question will dominate the campaign. The U.S. President is insistent on building a wall on the United States border with Mexico, with a warning that Mexico will pick the bill, without saying how.

    Mexicans will elect a leader who can best handle the matter in Mexico’s overriding national interest.

    Columbia will in May hold its first presidential election since the armistice with the FARC rebels. The end of one of the longest running wars will determine the economic situation of the country.

    European countries Sweden and Italy are also due to pick new parliament and prime ministers. While the Catalonia Independence bid in Spain will dominate headlines in the year.

    The result of the election called by Madrid after sacking the government in the rich region in which the separatists carried the day, is a slap in the face of Spanish Prime Minister Mariano Rajoy.

     

    Congo DRC

    Congo will also be able to shake off the Kabila dominance which started in 1997 when Laurent Kabila overthrew dictator Mobutu Sese Seko and assumed leadership.

    His son Joseph took over in January 2001 after Laurent was assassinated by one of his bodyguards.

    President Joseph Kabila had to be pressured by the International community to allow election which will hold later this year.

    Kabila completed his constitutional two terms and kept the country in abeyance thereafter.

    He neither set a date for election nor sought constitutional amendment for tenure elongation. He only said there was no money to conduct an election.

    The opposition which saw this as tenure elongation by subterfuge picked up the gauntlet.

    When the vast country with the second highest population on the African continent was becoming ungovernable, the United Nations (UN) and the African Union (AU) intervened and a date for election set. Will Kabila respect it?

     

    South Africa

    South Africa will also politick a lot this year although the general election to pick President Jacob Zuma’s replacement is next year.

    However, there is a possibility that Zuma may be ousted before he is due to exit.

    The president’s hold on the African National Congress (ANC) is ebbing.

    Zuma supported his former wife Nkosazana Dlamini-Zuma for the party’s leadership position but Deputy President Cyril Ramaphosa, with whom he is estranged, was elected. Ramaphosa, one of the ANC leaders that the late President Nelson Mandela pushed to boost the Black men in business and who enjoys the confidence of the business community, is poised to become the next President of the Republic.

    Britain will know its fate and its new economic direction as the Brexit negotiations get to a critical point.

    The world’s attention will also be glued to the UK in May when Prince Harry takes American Meghan Merkel to the altar in a marriage that will shatter many royal traditions.

     

    Russia 2018

    While Nigeria will be nominally represented at the Winter Olympics, the same cannot be said of the World Cup in June in Russia.

    The Super Eagles, carrying Nigeria’s flag in the same group with Croatia, Iceland and Argentina, are expected to put up a great performance and break the country’s World Cup Performance record.

    This will be Nigeria’s sixth appearance since 1994’s debut, but the country has never progressed beyond the second round. A quarter final place, and a defeat of Argentina, which defeated the Eagles in the last five editions will bring smile to the faces of soccer-loving Nigerians.

  • Fed Govt’s renewable energy projects: An overview

    President Muhammadu Buhari told the National Assembly that the Federal Government would launch the first African Sovereign Green Bond in December 2017 to finance renewable energy projects.

    The President, while presenting the 2018 Budget proposal, said: “I am pleased to inform this distinguished assembly that the Federal Government will be launching the first African Sovereign Green Bond in December 2017.

    “The bond will be used to finance renewable energy projects. We are very excited about this development, as it will go a long way in solving many of our energy challenges, especially in the hinterland.’’

    As a follow-up, the Debt Management Office (DMO) and the Federal Ministry of Environment, in collaboration with Green Bond Advisory Group, on December 14, organised the Nigeria Green Bond Investors Forum in Abuja and Lagos.

    Stakeholders at the forum include: Pension Funds Administrators (PFAs), the Federal Ministry of Finance, the Inter-ministerial Committee on Climate Change and the Nigerian Stock Exchange (NSE).

    Others are: DMO, Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), the World Bank and Chapel Hill Denham Group as well as representatives of private sector organisations.

    The DMO Director-General, Ms. Patience Oniha, said  the forum was organised to educate prospective investors in the Green Bond programme to know the benefits of investing in green bond projects.

    Ms. Oniha said that the Federal Government would soon issue N10.6 billion green bonds to finance renewable energy projects in efforts to protect the environment.

    The director-general said the Federal Government acted to borrow the N10.6 billion, in line with its borrowing agenda contained in the 2017 budget.

    According to her, more funds will be allocated to finance green bond projects in the subsequent budgets.

    Oniha said that the bonds would be used to finance three renewable energy projects, which were Renewable Energy Micro-Utilities Programme, Re-energising Education Programme and Afforestation Programme.

    Also speaking, Mrs. Halimat Bwari, the Deputy Director, Department of Climate Change, Federal Ministry of the Environment, said that N142 billion was required to finance renewable energy projects in the country.

    She said that the ministry decided to issue the green bonds as an alternative source of funding because of the huge capital outlay which was required to finance the nation’s renewable energy projects.

    According to her, the Green Bond programme would boost the nation’s economy and protect the environment.

    Besides, Mrs. Bwari said that the ministry had inaugurated five low-carbon growth projects.

    She listed the projects as the Rural Energy Access, the Great Green Wall Programme, the National Clean Stoves Scheme, the Clean Energy Transportation Scheme and the Nigerian Erosion and Watershed Management Project.

    Mrs. said that the projects would go a long way to reduce carbon emissions in Nigeria, while facilitating the country’s efforts to meet its commitments in the Paris Agreement on Climate Change.

    As part of efforts to promote renewable projects in the country, the Federal Government has called for public-private sector collaboration in efforts to promote the use of clean cook stoves.

    The Minister of State for the Environment, Ibrahim Jibril, while speaking at the 2017 Nigeria Clean Cooking Forum in Abuja, solicited the partnership to develop domestic market for made-in-Nigeria clean cook stoves.

    The minister, who underscored the need to develop and expand the market, emphasised that the government and the private sector ought to work together in growing the market for made-in-Nigeria clean cook stoves.

    According to him, clean cooking techniques constitute a priority area in efforts to achieve the goals of Nigeria’s Nationally Determined Contributions (NDCs), which aims at reducing carbon emissions in the country.

    “It also aims to reduce the emission of greenhouse gases; clean cooking energy for all is not only possible but a right for our citizens,’’ he said.

    Senate President Bukola Saraki stressed the need to step up activities and actions  aimed at increasing the use of clean energy by households in the country.

    He said that the citizens’ consumption of over 500 million kilogrammes of firewood every day was an enormous strain on the nation’s forest resources.

    Besides, Saraki said that nearly 65,000 people died every year in Nigeria due to household air pollution, while more than four million people died because of household air pollution globally annually.

    According to him, more than 50 per cent of these fatalities are children and women.

    The senate president, who underscored the need to increase the usage of clean cooking stoves by households, said that the stoves would save lives and help to create additional jobs for people in the country.

    A stove manufacturer, Mr Biodun Olaore, who is the Country Director, Envirofit Nigeria, urged the government to create public awareness on the menace of indoor air pollution and deforestation to enable Nigerians to embrace the clean cooking technology.

  • When courts add to litigants’ burden

    When courts add to litigants’ burden

    Courts are meant to resolve disputes among litigants by interpreting the law. However, incidents abound where, rather than help resolve disputes, courts, either wittingly or otherwise, compound them, leaving each party claiming victory. Eric Ikhilae presents some of such recent incidents.

    The court, ordinarily serves as the main institution through which the Judiciary carries out its core constitutional responsibility of law interpretation. And, in the process of interpreting laws, the court resolves disputes brought before it by litigants, who could either be natural persons or otherwise.

    Ordinarily, courts are meant to resolve conflicts among litigants and help put issues in proper perspective by effectively interpreting the law, eliciting its clear, lucid and unambiguous meanings, and thereby, giving life to the draftsman’s true intention.

    Of recent however, there appears to be a departure from this original practice. Court decisions tend to leave litigants confounded and issues muddled up. Rather than resolve disputes, some court decisions appear to engender dispute.

    Such appears to be the case in the seeming unending dispute over the Anambra Central Senatorial district seat.

    The Peoples Democratic Party (PDP), like every other party, had, preparatory to the last general elections, held a primary on December 7, 2014 to choose its flagbearer for the Anambra Central Senatorial seat.

    At the conclusion of the exercise, the PDP pronounced Mrs. Uche Ekwunife, then a decampee from the All Progressives Grand Alliance (APGA), as winner. An aggrieved aspirant, Obiora Okonkwo went before the Federal High Court, Abuja to challenge the outcome of the primary.

    In the suit he filed on December 23, 2014, marked: FHC/ABJ/CS/1092/2004, Okonkwo claimed to have scored the highest vote at the PDP’s primary election and sought to be declared the party’s actual candidate.

    He listed as defendants, the PDP, Adamu Muazu (sued for himself and on behalf of the PDP’s National Executive Committee and the party’s National Working Committee) and the Independent National Electoral Commission (INEC).

    While Okonkwo was in court, Mrs. Ekwunife contested the March 28, 2015 National Assembly election as PDP’s candidate and was declared winner of the Anambra Central Senatorial election by INEC.

    By the result announced by INEC, Mrs. Ekwunife polled 101,548 votes to defeat APGA’s Victor Umeh, who had 77, 129 votes and the candidate of the All Progressives Congress (APC), Chris Ngige, who came third with 20, 850 votes

    She was issued certificate of return and subsequently assumed the Anambra Central Senatorial seat at the Senate.

    Hardly had Mrs. Ekwunife settled on the Senate seat when APGA’s candidate for the election, Victor Umeh served her court papers, indicating that he was challenging the election outcome before the election tribunal.

    In its judgment on October 8, 2015, the election tribunal, led by Justice Nayai Aganaba, affirmed Mrs. Ekwunife’s election, but proceeded to alter the final votes earlier allotted by INEC to the PDP and APGA candidates.  The tribunal reduced Ekwunife’s final score to 93,300 votes and raised Umeh’s score to 85,898 votes.

    Unsatisfied, Umeh headed before the appeal tribunal in an appeal marked: CA/E/EPT/28/2015. After hearing parties, the appeal tribunal, at the Court of Appeal, Enugu rendered its decision on December 7, 2015, voiding Mrs. Ekwunife’s election on the grounds that she did not emerge as candidate of the PDP from a properly conducted primary election. It ordered a rerun and barred Mrs. Ekwunife and the PDP from participating in the rerun election.

    After a closer look at the appeal tribunal’s judgment, Mrs. Ekwunife, armed with several authorities, particularly some Supreme Court’s decisions relating to improper nomination and sponsorship, who could challenge the outcome of a party’s primary, and which court has jurisdiction over pre-election disputes, went back to the Court of Appeal, Enugu.

    She filed an application and urged the court to reverse itself. Although she drew the court’s attention to its decisions in similar cases involving Senators Andy Ubah and Stella Oduah, the court refused to be swayed and in a ruling on March 3, 2016, held on to its earlier decision, ordering INEC to conduct a rerun election for Anambra Central.

    Dissatisfied, Mrs. Ekwunife headed for the Supreme Court in an appeal marked: Supreme Court SC/204/2016. In its unanimous judgment on February 10, 2017, the Supreme Court dismissed Mrs. Ekwunife’s appeal on the grounds that it lacked the necessary jurisdiction to hear such appeal.

    Justice Amina Augie, in the lead judgment, said: “Looking closely at the wordings of Section 246 (3), it is clear that the decision of the Court of Appeal is final. This court is completely bereft of jurisdiction to entertain the appeal.

    “Once the Court of Appeal delivers its judgment on a National Assembly Election Petition appeal, the judgment becomes final. For the umpteenth time, the Constitution does not approve of the apex court to entertain this appeal no matter how cleverly it has been framed.”

    Meanwhile, while Mrs. Ekwunife was struggling to have her sack reversed, INEC, working with the December 7, 2015 judgment of the appeal tribunal, Enugu, fixed the rerun election for March 5, 2016. The rerun election never held. A lower court intervened and purported to reverse the decision of the Court of Appeal, Enugu.

    Contrary to the order by the appeal tribunal, Enugu, barring the PDP from participating in the rerun election, Justice Anwuli Chikere of the Federal High Court, Abuja gave a judgment on February 29, 2016 in a suit by the PDP and ordered INEC to include the party and its candidate in the rerun election scheduled for March 5, 2016.

    INEC rejected Justice Chikere’s decision and appealed to the Court of Appeal Abuja. Umeh equally appealed the decision. And on November 20 this year, the Court of Appeal, Abuja gave its decisions in both appeals marked: CA/A/160/2016 and CA/A/165/2016, and restated the December 7, 2015 decision of the appeal tribunal in Enugu, ordering a rerun, with the exclusion of the PDP and its candidate.

    The PDP has since appealed November 20, 2017 judgment and asked the Supreme Court to among others, void the judgment and order its inclusion in any rerun election to be conducted in Anambra Central.

    However, while Mrs. Ekwunife was fighting her sack up to the Supreme Court, and INEC and Umeh were challenging Justice Chikere’s decision at the Court of Appeal, the suit filed by Okonkwo since December 23, 2014 was stuck at the Federal High Court, Abuja, without it being decided one way on the other.

    Mrs. Ekwunife late applied and was joined as the 4th defendant in the suit by Okonkwo, following which parties filed all necessary processes and adopted them, after which the trial judge, Justice Ahmed Ramat Mohammed adjourned for judgment.

    Before the date set for judgment, the judge directed parties to adduce oral evidence to enable him determine which of the primary election results sheets, as presented by Okonkwo and Ekwunife, was the authentic one, and which the court could rely to determine the case.

    Court documents revealed that parties complied with the judge’s directive and another date was fixed for judgment. But before that date, Mrs. Ekwunife filed an application to set aside the order of adjournment for judgement and sought for an adjournment to enable her call additional witnesses.

    Although Okonkwo opposed the application, Justice Mohammed, in a ruling, granted the Ekwunife application. But, for unexplained reason, the judge later withdrew from the case.

    Okonkwo later appealed against Justice Mohammed’s ruling, allowing Mrs. Ekwunife to call additional witnesses. The Appeal Court dismissed the appeal and returned the matter to the FHC to continuation of trial and allow Ekwunife to call additional witnesses.

    When parties returned to the Federal High Court after the Appeal Court’s decision, the case was reassigned to another judge – Justice Okon Abang.

    At the resumption of proceedings before Justice Abang, Ekwunife failed to call the witnesses she had applied for, but instead, came with a fresh application urging the court to allow her do away with the planned additional witnesses.

    Okonkwo objected to the application and, in a ruling, Justice Abang dismissed it and ordered Mrs. Ekwunife to call her witnesses on the next adjourned date.

    Again, for an unexplained reason, when parties got to court on the set date, Justice Abang recused himself from the case and returned the case file to the Chief Judge for re-assignment to another judge.

    After some delays, the case got reassigned to Justice Babatunde Quadri, before who Mrs. Ekwunife failed to call her additional witnesses as ordered by Justice Abang in his last ruling in the case.

    Instead, she filed a notice of preliminary objection, urging the court to, among others, dismiss the suit on the grounds that the plaintiff (Okonkwo) had no cause of action and that all aspirants in the primary election were not made parties to the suit.

    After entertaining arguments from parties on the objection filed by Mrs. Ekwunife, Justice Quadri fixed August 3, 2017 for judgement. But, before judgment could be delivered, Okonkwo brought a motion, challenging Mrs.  Ekwunife’s locus standi to be joined as a party in the suit.

    Okonkwo argued that since the Court of Appeal had held that Mrs. Ekwunife was not validly nominated to contest in the election and as such sacked her from the senate, she could no longer be heard in relation to any dispute about the primary.

    He urged the court to first decide his later motion before its reserved ruling on Mrs. Ekwunife’s objection.

    In a ruling, Justice Quadri upheld Mrs. Ekwunife’s counter argument to the effect that Okonkwo’s request about dealing with his motion first amounted to arresting the court’s judgment.

    The judge proceeded to give his ruling on Mrs. Ekwunife’s objection and refused it. But, rather than proceed with the case, Justice Quadri withdrew. Okonkwo also appealed the judge’s last ruling.

    But, before the Court of Appeal could decide his appeal, Okonkwo withdrew it and, instead went back before the Federal High Court with a motion on notice filed on June 20, 2017 asking the court to among others, enter judgment in his favour.

    In the motion, Okonkwo stated that parties, “on May 18, 2017, agreed that the court hear the suit as originating summons by readopting their processes together with the motion on notice filed by the 4th defendant, challenging the jurisdiction of the court.

    “That by this agreement, all the parties do no longer wish to call oral evidence as per the judgment of the Court of Appeal in appeal No: CA/A/173/2016 by Obiora Okonkwo.

    “That on the same May 18, 2017 the 1st and 2nd respondents (PDP and Adamu Muazu) withdrew all their defence and processes they filed in the suit and submitted to judgment in favour of the plaintiff/applicant vide their affidavit of facts filed.

    “There must be an end to litigation and the end for the litigation for the validly nominated candidate of the PDP, who won the PDP primary election and National Assembly election will end by entering judgment in favour of the plaintiff/applicant upon the admission of his claims by the 1st and 2nd defendants/respondents and by implication, the 4th defendant/respondent, who has no locus standi to activate the jurisdiction of this court, and she is also relying on the same documents withdrawn by the 1st and 2nd defendants/respondents.

    “The 3rd defendant/respondent (INEC) is a neutral party, which has not filed any counter-affidavit opposing the claims of the plaintiff/applicant.”

    The judge to which the case was reassigned to, Justice John Tsoho decided Okonkwo’s fresh motion on December 13, 217 and granted some of his reliefs.

    Justice Tsoho held that Okonkwo was validly nominated by the PDP in its primary election of December 7, 2014 for Anambra Central Senatorial district held at the Ekweme Square, Awka.

    The judge ordered the Senate President to forthwith, inaugurate Okonkwo to take over the Anambra Central Senatorial District seat in the Senate. He also ordered that the certificates of return earlier issued to Ekwenife (if there is still anyone left) be withdrawn and a fresh one be issued to Okonkwo by INEC.

    Every interested party to the Anambra Central Senatorial seat appeared to have been thrown into a quandary of sort since the December 13 judgment.

    While asking INEC to issue him a certificate of return, as ordered by Justice Tsoho, INEC is unsure whether to proceed with its January 13, 2018 planned rerun election, which it scheduled shortly after the November 20, 2017 judgment of the Court of Appeal Abuja.

    INEC has since applied to the Federal High Court, asking Justice Tsoho to review his decision. While the court is yet to fix a date for the hearing of INEC’s fresh application, Umeh is of the view that Justice Tsoho is on his own and should not be taken serious. He said he was working towards the January 13 rerun election.

    Okonkwo’s understanding of the whole scenario is contained in a letter of December 14, 2017 written by his lawyer, Sebatine Hon (SAN) to INEC Chairman, Professor Mahmood Yakubu.

    Part of the letter reads: “we are counsel to Dr. Obiora Okonkwo, the Peoples Democratic Party (PDP) candidate that won the party’s nomination to contest the March 2015 election for Anambra Central Senatorial District but was unlawfully and wrongfully denied the ticket, which ticket was handed to Chief (Mrs.) Uche Ekwunife.

    “He is hereinafter referred to as ‘our client,’ and we hereby write on his instructions. Aggrieved by that clearly unlawful decision of the PDP, our client took out an originating summons in December 2014, challenging the actions of the PDP.

    “Joined as defendants in the suit were PDP, then chairman of PDP, Alhaji Adamu Muazu, Independent National Electoral Commission (INEC) and Chief (Mrs.) Uche Ekwunife.

    “In the course of the trial, however, counsel to the PDP and the PDP chairman; counsel to INEC and Counsel to Chief (Mrs.) Uche Ekwunife, all submitted to judgment, as per the claims in the amended originating summons and the motion for judgment filed and served on them by the plaintiff (our client).

    “It is instructive to note that the motion on notice sought for consequential orders, including an order that INEC should forthwith issue our client with a certificate of return and that he should be immediately sworn in as Senator of the Federal Republic of Nigeria.

    “In the course of the hearing on Wednesday, 13th December, 2017, all defence counsel again conceded and submitted to judgment; hence the Hon. Justice John Tsoho of the Federal High Court, Abuja entered judgment for our client as per claims in the amended originating summons as prayed in relief 3 of the motion on notice.”

    The letter referred to the two judgments of the Court of Appeal and said they merely voided Mrs. Ekwunife’s candidacy, but did not void the election held on March 28, 2015.

    It added: “The Court of Appeal, in that decision also held that the APGA candidate, Chief (Sir) Victor Umeh, could also not be declared winner of the said election, since he did not poll the highest number of votes.

    “Therefore, that the Court of Appeal did not nullify the March 28, 2015 election into Anambra Central Senatorial District, but merely held that Hon. Uche Ekwunife could not prove her due nomination by the PDP.

    “Now that the Federal High Court in suit No. FHC/ABJ/CS/1092/2014 has held that our client was duly nominated candidate of the PDP in that election; and in view of the settle case law that it is a political party as opposed to a candidate that wins an election, our client should, as ordered by Justice Tsoho J., be issued a certificate of return forthwith, to enable the senate leadership inaugurate him as Senator of the Federal Republic of Nigeria.”

    Umeh however provided a contrary argument. He noted that Justice Tsoho’s judgment was given about three weeks after the Court of Appeal sitting in Abuja had instructed INEC to within 90 days conduct the Anambra Central rerun with the exclusion of PDP as directed by its Enugu Division which quashed Uche Ekwunife’s election on December 7, 2015.

    Umeh was optimistic that INEC, as a responsible agency, would not obey the high court ruling against a subsisting Appeal Court decision.

    He added: “The Federal High Court judgment did not make any reference to the Court of Appeal judgment that nullified the election. It did not make any reference to the Court of Appeal judgment delivered on November 20 that ordered INEC to conduct the rerun election within 90 days.

    “It did not say INEC should ignore those Court of Appeal decisions. What it simply said was that it delivered a judgment on who was the candidate of PDP between Ekwunife and Okonkwo.

    “That was the judgment and he (Justice Tsoho) proceeded to make fallacious orders that Obiora Okonkwo should be sworn in. Sworn in on the basis of which election? An election that has been nullified?

    “If the election had not been nullified, and he comes to the conclusion that Okonkwo was the rightful candidate of PDP, yes, he can order that Okonkwo should be sworn in.

    “But in the present case, the election in question has been destroyed by the Court of Appeal judgment delivered on December 7, 2015, which nullified the election. And that is why the seat has been vacant till date.

    “So, Okonkwo is not going there to replace anybody because there is nobody there. The election has been voided by the Court of Appeal, which is the final court vested with the authority to adjudicate over National Assembly matters. And that was what the Supreme Court judges told Ekwunife on February 10, 2017. They told her that they don’t have any authority to tamper with the judgment of the Court of Appeal; that the judgment is final. So, the election remains nullified forever.

    A High Court cannot pretend that it is treating a pre-election matter and fail to recognise the fact that nobody can be winner of a nullified election. There is nothing for Okonkwo to claim because the election does not exist anymore. It has been invalidated,” Umeh said.

    Is there still a live election?

    Umeh’s argument that the election that Okonkwo seeks to inherit has long been voided is supported by two recent developments.

    First is the finding of the Court of Appeal in its judgment of November 20. The second is the observation by Justice Olasumbo Goodluck of the High Court of the Federal Capital Territory (FCT) in a judgment given few days before Justice Tsoho’s decision.

    In the November 20 judgment, Justice Tinuade Akomolafe-Wilson, who read the lead judgment, said: “Where a court nullifies an election and orders a fresh election, a political party which participated in the annulled election, at whose instance the election was nullified, cannot field a new candidate to contest in the fresh election.

    “This is because the fresh election does not entail an entirely new process; rather it takes the place of the annulled election, because the period of nomination of candidates has lapsed.”

    Justice Akomolafe-Willson noted that it was not the case of the 1st respondent (PDP), at the trial court, that it be allowed to substitute a candidate for Ekwenife, who had defected from the PDP, but for the “erroneous notion that the court-ordered rerun election, scheduled by INEC for March 5, 2016, entailed an entirely new process whereby it is entitled to conduct fresh primaries and nominate a new candidate.”

    She said it was unfortunate that the trial judge fell into a grave error by predicating her judgment on the ground that Ekwenife defected from the PDP. She added: “On the whole, having resolved the main issue in this appeal in favour of the appellant, this appeal is meritorious and it is allowed.

    “The decision of the trial Federal High Court delivered on 29 February, 2016, is hereby set aside. Independent National Electoral Commission (INEC) (2nd respondent) is ordered to conduct a fresh election in Anambra Senatorial District within 90 days from today with the participation of the appellants (Chief Victor Umeh and APGA).”

    On December 5, this year, Justice Goodluck gave a judgment in suit No. FCT/HC/CV/1110/2015 filed by Barrister Chukwunweike (Chike) Maduekwe, who claimed to have been an aspirant in the 2014 PDP primary for Anambra Central Senatorial district.

    His main claim in the suit was for the refund of the N4.5m he paid to the PDP for the expression of interest and nomination form. He said the party failed to hold a primary and so, he was entitled to a refund.

    In her judgment on December 5, Justice Goodluck agreed with Maduekwe that PDP did not hold a primary and consequently, ordered the party to refund N4.5m to the plaintiff.

    The judge said: “It is hereby declared that the 1st defendant [PDP] is not entitled to retain the N4.5m paid by the plaintiff as the PDP Senate Expression of Interest EO1 and nomination form when the 1st defendant refused, failed and or neglected to conduct the primary election to elect its flagbearer for Anambra Central Senatorial District.”
    A similar confusing scenario also presented itself in the case over Kogi East Senatorial district. After spending over three years in court, with several court decisions, the situation is not yet clear who the actual winner is. Each party is claiming victory.

    Like the Anambra Central case, this one also arose from a primary of the PDP held on December 7, 2014 at Idah Township Stadium, Kogi State. Retired Air Marshal Isaac Alfa claimed to have won the primary, but that the party substituted his name with that of Attai Aidoko.

    On December 19, 2014, Alfa filed a suit before the Federal High Court in Abuja to challenge what he saw as unlawful substitution of his name. The Federal High Court, in a judgment on April 18, 2016, held in his favour, to the effect that he was the authentic candidate of the PDP for the Kogi East Senatorial seat.

    Based on the Federal High Court judgment, Alfa proceeded to contest the National Assembly as the PDP candidate and won, while Aidoko appealed the judgment at the Court of Appeal, Abuja with a notice of appeal dated April 20, 2016.

    On December 14, 2016, after Alfa had assumed office as the Senator representing Kogi East, the Court of Appeal gave its judgment in the appeal by Aidoko, marked: CA/A/260/2016. The appellate court set aside the April 18, 2016 judgment of the Federal High Court on the grounds that the trial court wrongly assumed jurisdiction and that the suit was wrongly commenced.

    The Court of Appeal said among others, that pleading ought to have been filed at the court bellow and that the suit was not the type to be commenced by originating summons. It did not direct that the case be remitted to the lower court for re-trial, but instead, ordered the Independent National Electoral Commission (INEC) to issue fresh certificate of return to Aidoko.

    Alfa appealed the Court of Appeal’s decision at the Supreme Court, in appeal marked: SC/1088/2016.

    The Supreme Court delivered its judgment on the appeal by Alfa on June 16, 2017 and ordered among others, that the case be heard afresh by the Federal High Court.

    The apex court agreed with the aspect of the Court of Apeal that facts in the case was contentious, requiring that parties file pleadings and call oral evidence. Based on the Supreme Court judgment, Alfa refiled his case before the Federal High Court via a statement of claim on August 23, 2017.

    While hearing was about to commence afresh before the Federal High Court, Aidoko filed an application, requesting that three questions, which he raised on his own, be referred to the Court of Appeal for determination.

    Although Alfa objected to the application and the trial judge, Justice Nnamdi Dimgba found the application to be unnecessary, he allowed it and referred the questions to the Appeal Court as requested by Aidoko. And on December 18, this year, the Court of Appeal gave its decision on the questions referred to it by Aidoko, marked: CA/A/818/R/2017.

    Justice Abdu Aboki, in the lead ruling of the court’s unanimous decision, found that the three questions by Aidoko did not satisfy the conditions which must exist before the Appeal Court could give its answer under Section 295(2) of the Constitution.

    Justice Aboki said: “I have carefully gone through the three questions referred to this court for interpretation, the first question, in my view relates to the effect of the finding of this court which has not been set aside by the superior court (Supreme Court), whether it is binding on the parties and the courts.

    “The second question relates to rule of practice of the courts, relating to the doctrine of stare decisis and the third question relates to whether the Federal High Court has any jurisdiction to entertain and grant the reliefs sought before it.

    “It is trite law that reference, on a question as to the interpretation of the Constitution, to this court is not simply done as a matter of course, for mere asking sake. The question must be as to the interpretation of the Constitution or application of the Constitution.

    “In the instant case, it cannot be said that all the three questions relate to the interpretation of the Constitution. In the instant case, the reference questions, having been found not to have arisen from the proceedings of the Federal High Court, the further question as to whether it involves a substantial question of law does not arise.

    “The earlier judgment of this court, which went on appeal to the Supreme Court was no longer valid in view of the fact that all courts bellow are bound to follow the decision and order(s) of the Supreme Court.

    “In the instant case, the failure of the applicant (Aidoko) to establish all the three vital necessary pre-conditions for a proper determination of reference questions is fatal to the application. This application lacks merit, it fails and it is accordingly dismissed,” Justice Aboki said.

    Justices Peter Olabisi Ige and Emmanuel Akomaye Agim, who were on the panel agreed with Justice Aboki.

    Justice Ige particularly noted that Aidoko’s application to the Court of Appeal was an attempt to frustrate the execution of the Supreme Court order that the case be re-heard by the Federal High Court.

    He said: “In an apparent bid to stall and delay the hearing of the suit herein, as mandated by the Supreme Court, the applicant herein, brazenly brought a most reckless and bizarre application before the lower court, asking the lower court to refer, what the applicant, in his imagination, perceived to be constitutional questions to this court.

    “To my mind, the applicant has exhibited great disdain and contempt for the Supreme Court’s decision aforesaid. All he is out to do is to circumvent and render the judgment ineffective and frustrate the hearing de novo (afresh) ordered by the Supreme Court.

    “The lower court has ably stated the decision of the Supreme Court. This court as well as the parties are duty bound to obey and ensure the enforcement of the Supreme Court’s decision aforesaid. This court will not be a party to the intransigence of the applicant to truncate the decision of the Supreme Court.,” Justice Ige said.

    Since the December 18 ruling by the Court of Appeal, both sides to the dispute have been claiming victory. While Alfa’s supporters interpreted the ruling to mean that the Kogi East Senatorial seat has now become vacant, Aidoko’s supporters think otherwise.

    In his reaction to the ruling, Aidoko argued that his seat has not been declared vacant by the Court of Appeal. He added that at no point did the issue of candidacy or vacant seat come up in the ruling by the Court of Appeal.

    Why the confusion? What way out?

    A senior member of the Nigerian Bar Association (NBA) in Abuja, Abdulkarim Yunusa the confusion arises because cases are not determined on time. He argued that if cases were promptly heard and dispensed with by the courts, the confusing scenarios would not be witnessed.

    As a way out, he said; “For me, the way to go is for the courts to always ensure that cases do not get unnecessarily held down in court. When a judge recuses himself from a case, he should give reasons.

    “You don’t just withdraw from a case by merely citing personal reasons. What constitutes personal reasons? Judges should be firm and committed to their responsibilities. That to me, will save litigants from ala this confusion, the psychological trauma and waste of scarce resources,” Yunusa said.

    A senior law lecturer, Professor Josiah Chukwuma blamed that inability of the judges to connect with their environment for the confusion that mostly greet courts’ pronouncements. He noted that most judges have detached themselves from the society and interpret the law in abstraction.

    He cited the 2012 decision by Justice Abubakar Talba of the High Court of the Federal Capital Territory (FCT) in the criminal trial of John Yakubu, who pleaded guilty, in a plea bargain arrangement, to be involved in the theft of billions of naira in pensioners’ funds.

    Prof Chukwuma noted that the public outrage generated by the judge’s decision to give Yakubu an option of N750,000 fine, which later earned the judge a year’s suspension by the National Judicial Council (NJC), was because he did not consider the effect of his decision on the society.

    He said, where judges are mindful that they operate in societies inhabited by rational minds, they will learn to allow the interest of their societies and the possible impact of their decisions on such societies, reflect in their interpretation of the law.

    Prof Chukwuma said: “It is high time judges are reminded that they are able to sit comfortably in their chambers and dish out decisions because the society is at peace. Where the society is in turmoil, no one is immune to its negative impact.”

  • FinTechs, banks in desperate battle for market control

    FinTechs, banks in desperate battle for market control

    Technology is rapidly reshaping financial services operations. Banks and Financial Technology (FinTech) companies have identified a shift in consumer behaviour towards digital channels. Rising acceptance of FinTech start-ups’ services by bank customers threatens lenders’ control of over N30 trillion assets and revenues in the banking sector. That dominance is changing as FinTechs begin to offer products and services previously exclusive to the banks. Many lenders are fighting to reclaim lost businesses by investing in technology. COLLINS NWEZE captures the ongoing digital disruption in the banking sector and what it means for operators and customers.

    Michael Phillips, 35, was leaving home for work when his smartphone beeped with a familiar Facebook message alert. It was another reminder for him to renew that month’s subscription for his DStv – pay-to-view cable service.

    His four-year-old daughter, Nancy, had reminded him the previous night that the subscription would be expiring that Monday morning. Two payment options came to his mind. The first was to renew the subscription through internet banking platform. The other option was to use the Paga network.

    Few minutes later, he opted for the Paga option, one of the Financial Technology (FinTech) firms and money transfer service provider. FinTech is the new technology and innovation that competes with traditional banking methods in the delivery of financial services.

    As little as the N100 transaction fee seems, it represents one of the millions of revenue leakages facing commercial banks daily. Paga now has over 7.5 million customers in just eight years of its operation.

    A few years ago, Phillips could not have imagined paying his bills online without going to the banking hall.

    Another bank customer, Lucy Osademe, chatted endlessly on her two mobile smart phones as she waited in a long queue within Ikeja to withdraw N10,000 at an Automated Teller Machine (ATM). Then the machine stopped dispensing cash; the long queue disappeared.

    Osademe decided to go into the banking hall where he met a longer queue. One hour later, a customer service officer announced a system downtime.

    “Please, the system is very slow. Kindly give us more time to process your transactions,” the officer pleaded. It took one hour before Osademe was paid.

    Yet, for the likes of Phillips, willing to leverage on the FinTech opportunities to settle their financial obligations, many, like Osademe, are frustrated by the poor quality of service they get from their banks. There are equally a larger number of customers who have lost confidence in the banks’ internet or mobile banking platforms.

    “Mobile payment is where the world is heading and Nigeria cannot afford to be left behind. We do not compete with the banks since our funds are saved with them. But, there are places where we clearly compete, and there are more places where we collaborate to do what we are doing,” Paga’s Co-Founder, Jay Alabraba, who has been in a rush since taking up the top job eight years ago, said during a chat at his Lagos office.

    The Paga chief insisted that change was needed because brick-and-mortar approach to banking is expensive and not accessible.

    He said: “Nigerian consumers are changing. They are getting busier with no time to waste. They want to get their services nearer to where they work or live. Shopping is becoming entertainment and recreation while the phone is becoming their most intimate relationship. That explains why we are stepping in.”

    As the banks and FinTech firms battle for the control of the more than N30 trillion banking assets and revenues in the financial sector as highlighted in the Central Bank of Nigeria’s (CBN’s) economic report for June, their customers are taking strategic decisions on which platforms to embrace.

    But, it is not just Paga that is making banks rethink their continued existence, since technology firms crept into some businesses traditionally meant for the lenders. Social media platforms, e-commerce providers, and mobile money services, technology payment firms have brought new twists to how banking is done.

    Managing Director, Cellulant Ghana, Albert Ngumba, said his firm facilitated payment for agricultural value-chain, helping Nigeria farmers to buy fertilisers, paying through Cellulant platform instead of banks. Famers can also perform financial transactions, including savings, transfers, loans, micro insurance using its platforms.

    “We sit between the banks, mobile operators and merchants. We power payment and make transactions easier for the people,” he said when contacted on telephone.

    “Our wallet account holders can now enjoy the convenience of ATM cards to take out money from a machine and buy products or services. They don’t have to carry cash because they can get it from almost any ATM machine and pay bills easily and quickly,” he added.

    Also, before the coming of Treasury Single Account (TSA), Nigeria’s notoriety in the public finance management brought the country to the state of near-economic-collapse.

    But today, Remita, an e-payment solution developed by SystemSpecs and adopted by the CBN for the payment and collections of funds for the Federal Government has turned the backbone of TSA implementation.

    The TSA consolidates all inflows from government agencies, using the Consolidated Revenue Account (CRA) at the CBN.

    Prior to the advent of Remita, commercial banks were responsible for the collection, processing and management of government revenues. The deployment of Remita has reduced government’s debt servicing costs, lowered liquidity reserve needs and boosted effective use of surplus cash.

    “Remita processes over $30 billion transactions every year, and that’s just within Nigeria,” SystemSpec’s Chief Executive Officer, John Obaro, said.

    Besides lowering the level of corruption, he said the TSA greatly exposes the emerging potential of FinTech industry in the country.

    Other platforms that have taken chunks of banks’ businesses and profitability are: Facebook, Twitter, LinkedIn, My Space, Tumblr, Instagram, Alibaba, Jumia, Konga, Supermart, Amazon, Square, Cellulant, Apple, Google, Visa and MasterCard.

    Companies, such as Uber, Taxify and Airbnb have equally developed radical business models that continue to surprise many institutions.

    Secure online payments systems, such as PayPal and mobile payments and transfer solutions, are changing the ways in which payments for goods and services are made. These firms are helping consumers to make payments, secure credits, and do things that banks consider impossible. They satisfy customers’ thirst for speed and variety, leaving banks struggling for customer loyalty.

    An Executive of the Research and Policy Department, Nigeria Deposit Insurance Corporation (NDIC), Kabir Katata, said digitisation has changed financial services landscape.

    To him, FinTech firms are latching on clear evidence that consumer behaviour and expectations of service and experience are changing.

    He said the take-off of e-commerce and emergence of fast-rising online outlets, such as Jumia, Konga and Supermart, are opening up new avenues for e-payments and data collection that were previously left for banks.

    Speaking at a media conference in Kano State, Katata described FinTech as a technologically-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services.

    He said: “Multiple technologies poised to drive the next wave of financial services are converging in maturity. FinTech threatens to disrupt financial markets with the banks taking the threats like the loss of control, the emergence of a non-regulated environment, market fragmentation, and loss of revenue—very seriously.”

    Katata disclosed that while many banks have been able to retain their customers through traditional channels and digital service offerings, recent shifts are threatening the customer base of those yet to key into it. Even long term banking relationships at traditional banks, he added, is susceptible to disruption.

    Managing Director, Nigeria Interbank Settlement System (NIBSS), Adebisi Shonubi, noted that transaction at banks’ branch transactions have dropped by 25 per cent in the last one year, as more customers embrace electronic payment.

    “Banking transactions are moving towards zero human interactions, saving cost and time for customers,” he said.

    A Senior Manager, Management Consulting, KPMG Nigeria, Bode Abifarin, disclosed that one-third of Nigeria’s population is below 24 years. The implication is that with a growing middle-class population, internet penetration and usage, which are the backbone of FinTech firms, the sector is set to grow significantly.

    Abifarin said: “KPMG survey shows that 77 per cent of Nigeria’s banking customers now use social media for personal purposes. The problem is that Nigeria’s banks have largely failed to translate this passion for the internet and social media into increased adoption of internet and mobile banking solutions and that is what FinTech firms are leveraging on.”

    Echoing him, Partner, Technology Advisory, KPMG in Nigeria, Boye Ademola, said that digital platform businesses are also leading a quiet revolution in Nigeria and indeed, Africa. Over the last 18 months, Jumia, an e-commerce platform and another Nigeria’s leading FinTech firm, attracted investments of $425 million and $250 million respectively. He said these firms are valued at over $1 billion each. “They both have footprints across Africa and are looking to become formidable platform businesses,” he stated.

    Even global financial institutions have seen the rising influence of FinTech firms.

    Speaking at the 2017 Annual Meetings of the International Monetary Fund/World Bank, IMF Managing Director, Ms. Christine Largade, acknowledged the rising excitement about FinTech.

    She said: “We cannot be sure, but we know that digital currencies, new models of financial intermediation, and artificial intelligence will change the way we do our job. Our key message is that it would be wise for central bankers and regulators to prepare for the potential benefits and challenges of FinTech,” she advised.

    Ms. Largade said that FinTech might provide solutions that respond to consumer needs for trust, security, privacy, and better services, change the competitive landscape, and affect regulation.

    She admitted that boundaries among service providers are blurring, barriers to entry changing and improvements in cross-border payments likely.

    SystemSpecs Executive Director, Deremi Atanda, said the rising influence of FinTech in banking is not a threat, but would improve banking penetration in key segments of the economy.

    He said that technology is key in realising the CBN’s financial inclusion plans.

    “If financial inclusion is about bringing people into the formal economy, then FinTech is making that happen and that can only boost economy. So, FinTech is accelerating the rate of economic growth by bringing more people into the financial system,” he said.

    Atanda, who spoke on the theme: “Regulatory concerns on risks: Challenges and the resulting impacts on FinTech adoption” at a financial inclusion conference in Lagos, said the introduction of FinTech cannot in anyway threaten banking services. Rather, it will compliment them.

    He said: “Well, I do not think the banks are jittery about FinTech roles in providing financial services. It is not an immediate threat in this immediate environment. At the end of the day, payment is cultural. And it must also be within context. And so, technology will always follow the ways and manners of people, even though it can be disruptive in nature.”

    The SystemSpecs’ director said lenders will have to leverage on infrastructure such as internet penetration, data, identity, which FinTech firms are trying to ramp up.  Atanda said: “It is not that FinTech is going to disrupt banking per say, the mix of it accelerates the growth, exchange of value, and boosts the economy in general.

    “The role we (FinTech) play is just as enablers and facilitators within a collaborative ecosystem, because one party cannot do it all alone. We are going to be working with regulators, banks and other financial service providers and generally everyone focused on seeing transactions thrive.”

    According to him, 70 per cent of FinTech transactions are centred around remittances and lending as they do not take deposits like commercial banks.

    Pointing out that it was not unusual to see regulators clash with FinTech innovators, Atanda said regulators must ensure that technology being adopted does not have unintended consequences that challenge what they saw in creating those things.

    The CBN Director in charge of Banking and Payments System Department, ‘Dipo Fatokun, said the demand for the services of FinTechs will continue to rise, even as they need commercial banks’ for them to operate effectively.

    He noted that the increasing roles of FinTech companies in the payment system will allow banks to focus more on their traditional role of financial intermediation.

    Fatokun predicted the rise in the need for collaboration between the FinTechs and banks, as none can displace the other.

    The CBN director explained that banks in developed world focus on their core functions and leaving other roles to service providers.

    Fatokun said: “FinTechs have always been in existence. It’s just that more prominence is being given to their roles. In some jurisdictions FinTechs are being allowed, or plans are under way to allow them connect to the central bank which, previously, was the exclusive preserve of the commercial banks.

    “The fear has always been there that FinTechs will take over the roles of the banks and that a time will come when there will be no bank. FinTechs are not licenced as financial institutions, they cannot take deposits. They can only facilitate payments or make it easier but the banks will still continue to play a very big role.

    “Banks provide hundreds of services outside of payments. They open Letters of Credit (LC), give out loans and you can only give loans if you take deposits. The banks provide guarantee, either an advance payment guarantee or a performance bond for contractors. For you to do that, you need to be a licenced financial institution.”

    According to him, FinTechs have played a complementary role for the baking industry and that have made it possible for banks to provide services at cheaper rates and expand their services to the grassroots.

    Konga said it has opportunity to create an operating system for e-commerce not only in Nigeria, but across Africa. It admitted that one needs heavy lifting and deep pockets to succeed in this business insisting that the entrepreneurial energy of Nigeria is greater than what Konga alone can do.

    Jumia is taking the local market very seriously, just as it has taken precautions to guide against fraud.

    It said the online retailer introduced cash-on delivery policy to ensure that customers match request with product quality.

    But, Board Chairman, Parkway Projects, owners of ReadyCash Mobile Money, Richard Obire, explained that three parties are involved when mobile money transaction takes place.

    The banks, telecom operators and the mobile money operator are all involved, sharing the fee that come with the transaction.

    Obire, who was former Executive Director, Keystone Bank, said the cash involved in the transaction sits in the bank, although represented by electronic wallet.

    He said the coming of mobile money is not totally taking away business from the banks, but is helping the lenders to tap into the unbanked market.

    “The entire banking system is an ecosystem where the players are given roles to play. Such roles including banking the unbanked through mobile money will deepen the financial system,” he said.

     

    Banks fight back with innovation, collaboration

    As banks’ revenues fall, the lenders are looking at areas to bridge the gaps. There is the zeal to raise cheap funds, finance power sector projects, mortgage, agricultural and educational businesses.

    Some banks have also gone into Facebook banking, social lending and partnership with global payment and technology firms.

    Wema Bank’s Deputy Managing Director Ademola Adebiose said his bank is playing big in the digital space, where lies the future of banking. He said the mid-tier lender introduced Alat, a fully digital platform, to enable it capture the grassroots customers and the youths. Adebise said: “Digital banking is becoming more attractive to banks and their customers. It is catching the attention of everyone thinking of speed, efficiency and cost saving in banking.”

    He explained that the lender had reviewed its marketing strategy, and made huge investments in the digital space. The Alat platform, he said, has over 100,000 customers, mostly the youths.

    According to him, WemaBank is collaborating, not competing, with FinTech firms.

    Adebise said: “I think we should see it as how do we build an eco-system. Yes, I have my customers. The FinTechs have their products. They will need to access my customers and we need to collaborate.

    “It is not an issue of whether they are taking over or not. And mind you, the business of banking is regulated. The CBN is charged with the responsibility of regulation. But we cannot rule out the threat presented by FinTech and any forward looking organisation or bank must identify the areas of collaboration to build the ecosystem. You cannot be competent on everything.”

    Besides, FirstBank, Fidelity and Union banks have partnered with PayPal to enhance online payment for shoppers. The partnership enables the lenders’ customers to register for a PayPal account from their internet-banking accounts.

    By linking their-issued debit, prepaid or credit cards to their new PayPal account, customers can then shop and pay on millions of websites around the world from their personal computers, tablets or smartphones, without having to share financial information with the seller.

    Fidelity Bank Chief Executive Officer, Nnamdi Okonkwo, described the introduction of PayPal as a deliberate attempt by the bank to make financial services easy and accessible to its customers.

    Specifically, he said that the development is in line with the bank’s commitment to consistently deploy innovative strategies to make life easier for its customers.

    Aside partnership with payment firms, some banks have also developed products that are technology-driven. The GTBank Instant, First Instant and Sterling Social Lender accounts were built by GTBank, FirstBank and Sterling Bank respectively to enhance social banking.

    Here, customers can open accounts online, and that creates convenience for them.

    For instance, Sterling Bank’s Social Lender Account allows it to grant loans to customers on Facebook. It provides a platform for online fans, followers who are customers of the bank to obtain micro-credit loans via social media starting with Facebook and Twitter.

    The bank said approval of the loan happens within 10 minutes, and that borrowers can make the request online and get their accounts credited with the fund.

    It explained that although it started with N3, 000 for borrowers, the amount will gradually rise, and is targeted at customers with urgent cash need.

    Adaku Obi, a customer who benefitted from the loan narrated her experience: “While going to Yaba some days ago, I had no cash in my wallet. I needed cash badly. My cheque book was not even with me. I couldn’t find my bank branch around because I wasn’t familiar with the area.

    “So, I tweeted at the handle of my bank. The response was swift. In 10 minutes, my account was credited with N3, 000 short term credit. That is how interesting banking has become.”

    Access Bank Plc, Visa and shoptomydoor.com, an online shipping company are collaborating to give Visa cardholders opportunity to shop online at retailers in the United States (U.S.), United Kingdom (UK) and China. Such customers, the bank’s Executive Director, Personal Banking, Victor Etuokwu, said, will also enjoy exclusive shipping discounts and shop from the world’s major international retailers with more flexibility and convenience.

     

    Stakeholders speak

    Financial pundits believe that banks do not fear other lenders but the start-up in a bedroom. Managing Director, CRC Credit Bureau Limited, Tunde Popoola, said deepening the financial landscape creates room for new players to emerge.

    Popoola said: “When the financial system is deepened, the banking industry will be the ultimate gainers. The good thing is that people now have more choices to make. It is only banks that key into the new opportunities that will benefit.

    “But, if they are able to innovate, and device ways of seeing their customers not necessarily coming to the banking halls, but getting the services they need wherever they are, then, they will be the gainer at the end of the day. Lenders that are unable to get to their customers through some of these forms and processes will lose the market.

    “Organisations such as Paga, Cellulant, are all part of what we are expecting. More of them will come. We have those who are in the telephone territory. There are those in the credit card territory and they are not formal banks. These are the things that will become the formal feature of our economy.”

     

    Connecting past with future

    White Sapphire’s Chief Executive Officer Biyi Fashoyin said it is not just the banks that need to innovate, the world itself is now a global village, and the social media is a community by itself.

    Fashoyin said: “Any corporate entity that ignores the social media and technology is just on its own peril. Everybody now is now on social media, including the kids. Any wise bank will know that’s where the market is. It is a ready market.

    “The industrial revolution came at a time. Europe, America and some other countries took part. Some other countries especially in Africa stayed back. Eventually those that participated became the global powers. Those that abstained were labeled third or fourth world countries.

    “That is exactly what is going to happen to the business world. Any bank that is stepping back now, running away from the current realities which reside in the social media space, or the virtual world, will soon be out of business.

    “My advice is that every bank should come in and plug into it. That’s where your market is. That’s where your future is. Your future is actually in the social media,” he said. Fashoyin, who is a social media adviser, admitted that the platform has become a place for the good, the bad and ugly.

     

    Global trends

    At the international level, FinTech firms are among global business leaders. Alibaba Group Holding Limited, a retail and technology conglomerate provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals and electronic payment services.

    As of last month, Alibaba’s market capitalisation stood at $486.27 billion. It is one of the top 10 most valuable and biggest firms in the world.

    PayPal’s services allow people to make financial transactions online by transferring funds electronically between individuals and businesses. Through PayPal, users can send or receive payments for online auctions on websites like eBay, purchase or sell goods and services, or donate money or receive donations.

    Amazon, has 230 million accounts, and dominates online shopping.  The tech giant is the largest Internet retailer in the world measured by revenue and market capitalisation, and second largest after Alibaba Group in terms of total sales.

    The PricewaterhouseCoopers (PwC) 2017 digital banking survey found that 46 per cent of customers skipped bank branches altogether, relying instead on smartphones, tablets, and other online applications.

    U.S. Financial Services, Industry Leader, Neil Dhar, writing in this month’s edition of the PwC Financial Services report titled: Digital Transformation in Financial Services, said both wholesale and retail users now expect a digital experience from their financial institutions.

    Dhar said: “It is about differentiated customer experience, providing what customers want, when they want it, and how they want it, whether you are a bank, insurer, or asset manager.

    “This is not just a matter of cosmetics. Banks need to change their back-end operations to support it. And they will need to think differently about how to solve problems because technology is not a silver bullet.”

     

    Stakeholders proffer solutions

    Wema Bank Executive Director of Retail & North Directorate, Moruf Oseni, advised banks to take steps that would enable them meet customers’ needs better.  He said that customers should be given a priority in designing banking products and services.

    Oseni advised: “Banks must become customer-centric because the disruption in the banking industry is real. There are two ways to react to it. Its either we sit down and wait to be protected by the regulators or work with the ecosystem to build the future of banking.”

    On competition in the industry, he said: “Competition in the e-payment space is stiff. Bank to bank competition is not even as deadly as FinTech startups-bank competition. Any bank that is not innovative in the times we live in will die a natural death.”

    Ms. Largade advised regulatory authorities to balance carefully, efficiency and stability trade-offs in the face of rapid changes, and ensure that trust is maintained in an evolving financial system.

    She urged the authorities to calibrate regulation in a manner that appropriately addresses the risks presented by FinTech firms without stifling innovation.

    In the days and years ahead, the big question will not be whether FinTechs have come to disrupt or complement banking operations, but which of the sectors controls the over N30 trillion assets and revenues that define Nigeria’s financial sector as a leader in the sub-regional banking businesses. The market will always favour operators that meet customers’ demand for speed, efficiency and security, in the delivery of financial services.

    In a report by Ernst & Young (EY) entitled: “Unleashing the potential of FinTech in banking”, the multinational professional services firm, advised banks to determine how best to engage with FinTechs, given the contrasting sizes and cultures of their respective organisations. FinTechs also need to know how best to approach and navigate their way through banks.

    EY said the most successful banks will be those that improve speed and reduce costs by collaborating with a range of different partners in building the strongest network.

    To achieve the future state, the banks must unleash the FinTech potential in their own organisations – and both must forge ahead to get better to successfully drive innovation. There is no alternative to this collaboration to stay in business.

     

  • Faleke challenges Governor Bello on true position of Kogi’s finances

    Faleke challenges Governor Bello on true position of Kogi’s finances

    •Let Xmas be merrier for workers

    Why should the wage bill of a state shoot up after the discovery and delisting 5000 names from the payroll as ghost workers? Why should 21 council areas have nothing to show for the 44.7 billion they shared in two years? Why should a state with a monthly wage bill of N3.5 billion be shopping for N30 billion to clear two month’s salary arrears?

    The above, and many more, are the posers thrown at Kogi State Governor Yahaya Bello by James Abiodun Faleke, a House of Representatives member and running mate to the All Progressives Congress (APC) candidate in the November 21, 2016, Kogi governorship election, the late Prince Abubakar Audu.

    In a letter to the governor entitled: “A passionate appeal for you to alleviate the people’s suffering this xmas”,  Faleke alleged that public servants in the Confluence State were being denied the dividends of good governance, which formed the plank of the APC electioneering campaign in 2015.

    According to the letter, Governor Bello has been economical with the truth on funds accruing to the state from the Federation Account and the application of such revenue.

    For instance, Faleke said it stood logic on its head for a state that was picking a monthly wage bill of N 2.6 billion prior to a verification exercise that detected 5000 ghost workers to be paying N3.5b after the verification.

    The letter reads: “Shortly after you came in, you embarked on a staff verification exercise which you claimed was aimed at weeding out ghost workers from the payroll of government, thereby freeing more funds for social and infrastructural development.

    “You were applauded for taking that positive step aimed at repositioning our state. However, the people’s enthusiasm as to whether the exercise would succeed or not began to shrink when you prolonged the programme to almost two years without paying any of the workers, leaving mass hunger and angst in the land.

    “Some died in the process, while most of the workers went through unimaginable stress and humiliation all in the name of a staff verification exercise that till date has been more of burden than blessing to the state.

    “Under the previous administration before you started your verification exercise, the wage bill was in the region of N2.6 billion per month, excluding local government wages and when you concluded the verification, you gleefully told the world that your administration had successfully discovered over 5000 ghost workers from the workforce and that you would begin to save at least N1.5 billion monthly through the exercise.

    “Surprisingly, Your Excellency, your administration is now claiming your monthly wage bill is around N3.5 billion! So, where is the money recovered from the 5000 ghost workers discovered? If the wage bill under Governor Idris Wada was N2.6 billion, I think your own wage bill should come down to around 1.5 billion naira and not skyrocket to 3.5 billion naira monthly.”

    Describing the verification as a waste of time and resources, the federal lawmaker alleged that the principal and vice principal of the secondary school attended by the state’s finance commissioner, were among those delisted from the wage bill as ghost pensioners by the panel that carried out the verification.

    Faleke alleged: “Your screening committee did not help matters by declaring bonafide workers and pensioners, ghost workers. So, it is even difficult to know the real bonafide workers and the exact number of the state workforce.

    “A critical example is the case of the principal and the vice Principal that taught your Commissioner of Finance, Idris Ashiru, in secondary school. Mr. Isiaka Aina Sule (Principal) and Mr. Christopher Ayo Olubunmi (Vice Principal) were respectively declared ghost pensioners. They are owed 23 months as we speak.”

    He described as unfortunate that a screening on which the governor spent N1 billion of the taxpayers’ money ended up as an exercise in futility.

    Recalling how he and the late Prince Audu dislodged the Peoples Democratic Party (PDP) administration from the Lord Lugard State House in Lokoja, Faleke noted: “It is for these reasons, with very deep pains in my heart and with all sense of responsibility, that I decided to write you this personal letter on the hard times being experienced by the generality of the citizenry of our dear state under your watch.

    “I decided on this noble path as a principal stakeholder, who devoted time, energy, finance and risked my safety to crisscross the nooks and crannies of Kogi with our late leader, Prince Abubakar Audu to campaign; through an aggressive marketing of our program of action to the long suffering people of our dear state.

    “As Your Excellency is very much aware, the people trusted us and gave us their overwhelming mandate, faithfully handling over the reins of government to our dear party – the All Progressives Congress (APC)  – for a complete positive turnaround of the fortunes of the state.”

    On discrepancies in the state finances, Faleke urged the governor to explain why a whopping N30 billion is required to settle unpaid arrears after telling the whole world that his administration was owing only two months of salary arrears.

    Faleke said: “Only recently, your government promised to pay all the workers before the end of the year based on the final release of the Paris refunds but surprisingly, your commissioner for Finance was quoted to have said that the state government needs N30 billion to clear all outstanding salary arrears and pensions.

    “Now could the N30 billion be the value of the said two months arrears your government is claiming to owe workers? What is really happening? Right now, some states have paid December 2017 salaries ahead, while some have approved the 13th month salaries with bonuses. But, in Kogi, the workers are not even sure if they are workers or not. Most of them are owed over 18 months, while pensioners are crying to be paid.”

    Alleging that the 21 local government areas have not justified the more than N45 billion allocated to them in the past two years, the House of Representatives members accused the governor of short-changing the councils.

    He said: “Your Excellency, the local government areas under your appointed administrators have received over N45 billion since you assumed office (See Table 1). Yet, there is nothing to show for it. Though, it is common knowledge that your administration releases an average of N10 million per month to these administrations from their allocations.

    “The question is, what do you do with the rest of the monies meant for these local governments after giving your administrators their usual monthly N10 million handouts from the over N100 million that accrue to each of them as monthly allocations?

    “The local government salaries that are supposed to be paid from those allocations are not paid. And no developmental projects taking place in any of these local governments.”!

    Backing with his allegations with two tables, one showing what accrued to the council areas and the other the earnings of the state from internal and external sources, Faleke claimed the state got over N20 billion from the Federation Account and from Internally Generated Revenue (IGR).

    He said: “It may also interest Your Excellency that your administration has received over N200 billion as at today from Federal Government and Internally Generated Revenue sources respectively (See Table 2).

    “The question is what you have done with such a humongous sum of money in a state where people are daily dying of hunger and committing suicides.”

    Faleke, who warned that the failure of the government to live up to the promises of the APC to people could have grave consequences for the party in the Northcentral state, said: “Are we not playing on the sensibilities of the people as a party?

    “Be informed, Your Excellency, that the image of our party, the APC, in Kogi State  has been destroyed to such an extent that other parties in the state are now being emboldened take over power.”

    He, however, urged the governor to rededicate him to the service of the people, saying: “It is not too late to make amends. You can start from this December by ensuring that workers and pensioners received their dues promptly.

    “Then you can now follow up by abandoning the regime of profligate spending and embracing the noble path of development through aggressive road construction networks across the state, massive infrastructural facilities, provision of funds for the development of our health and educational sectors respectively among others.”

    “That is the way to start cleaning the Augean stable that Kogi has become, unfortunately.”

    According to Faleke, the performance of the governor must have disappointed those who helped him into office after the logjam created by the demise of Prince Audu before his declaration as the winner of the last Kogi governorship poll.