Category: Special Report

  • Coca-Cola brands and the burden of market leadership

    Coca-Cola brands and the burden of market leadership

    Arguably one of the world’s famous bottler of soft drinks, Coca-Cola is battling with the allegation of ‘poisonous’  Fanta and Sprite. But will the allegation affect the market dominance of the giant’s product? WALE AJETUNMOBI reports. 

    These are not the best of times for Coca-Cola Company – a frontline bottler of of soft drinks. There is a raging controversy over the consumption of its products and criticisms against the bottling company have been on the rise since 2000. There have been growing concerns over health effects, environmental issues, animal testing, economic business practices and employee issues.

    The company has multiple lawsuits to contend with. Its brands are some of the world most assaulted. In every market, the volatile competition has thrown many blows against one of world’s oldest brands. It has been from one trouble to the other from its Coke, Fanta to Sprite brands.

    Not a few consumers confirm these assaults, regulatory authorities in various market where the brands thread like a colossal are often knocking at the company’s door to explain one consumer violation or the other.

    The dust raised by half-filled bottles of Fanta and Sprite accusations in 2014 had hardly been cleared by Consumer Protection Council (CPC) before another was raised last week. A Lagos State High Court, Igbosere, judge, Justice Adedayo Oyebanji, on March 14, ordered the National Agency for Food, Drug Administration and Control (NAFDAC) to compel the Nigeria Bottling Company (NBC) Plc, manufacturers of Fanta and Sprite soft drinks, to include a written warning that the drinks should not be taken with Vitamin C.

    It was the climax of a nine-year old suit against NBC and NAFDAC. A Lagos-based businessman, Dr. Emmanuel Fijabi Adebo and his firm, Fijabi Adebo Holdings Ltd., who dragged NBC and NAFDAC to the court, urged the court to direct NAFDAC to conduct routine laboratory tests of all soft drinks and allied products of the company, to guarantee their safety on the account of negligence and breached of duty of care owed its customers and consumers in the production of Fanta and Sprite with excessive “benzoic acid and sunset” additive

    For the conglomerate, the ruling was another blow within two years in Nigeria. In the case of half-filled Sprite bottle two years ago, the CPC got a complaint from a consumer, regarding two half-empty cans of “Sprite” purchased in Abuja, the Federal Capital Territory (FCT). Coca-Cola and the NBC were blamed for their nonchalant attitude towards the directive of the council. The CPC leadership was blamed by stakeholders for high handedness. But the CPC, its members and the beverage giant have moved on.

    Regardless of where the pendulum of judgment finally swung, it is obvious that the CPC/Coca-Cola matter was a major issue of consumerism in 2015.

    Unlike the case of half-filled bottle, the last case has been more frightening.  The court warned that taking Fanta and Sprite with Vitamin C is poisonous and awarded N2 million against NAFDAC for failing “to live up to expectations”. It said the agency failed the citizenry  by certifying as satisfactory for human consumption, products which, in the United Kingdom (UK), failed sample test for human consumption and became poisonous when taken with Ascorbic Acid, known as Vitamin C.

    Fijabi, also counsel to the plaintiffs, Mr. Abiodun Onidare, in an amended statement of claim, alleged that sometime in March 2007, Fijabi Adebo Holdings, bought large quantities of Coca-Cola, Fanta Orange, Sprite, Fanta Lemon, Fanta Pineapple and Soda Water from NBC for export to the UK for retail purpose.

    “In consideration of the fact that this case was filed in 2008 and has been in court for nine years, N2 million is awarded against NAFDAC. Interest shall be paid on the cost awarded at the rate of 10 per cent per annum until liquidation of the said sum,” Justice Oyebanji said.

    A public relations consultant for the NBC, Bolaji Abimbola, took to Facebook and posted releases to debunk the claims in an apparent move to insulate the brand.

    He said: “Both Benzoic Acid and Ascorbic Acid (Vitamin C) are ingredients approved by international food safety regulators and used in many food and beverage products around the world. These ingredients are also used in combination in some products within levels which may differ from one country to another as approved by the respective national food and drug regulators in line with the range prescribed by CODEX, the joint intergovernmental body responsible for harmonizing international food standards.

    “All Coca-Cola products, including Fanta and Sprite, produced and sold in Nigeria, contain quantities and combinations of various ingredients in line with the CODEX standards and the national levels approved by NAFDAC. While Fanta contains a combination of Benzoic and Ascorbic Acids, Sprite does not contain Ascorbic Acid (only Benzoic Acid).

    “The recent court order relating to this matter has been appealed by NAFDAC and the Nigerian Bottling Company Limited respectively. We reaffirm our unwavering commitment to product quality, safety and consumer satisfaction.”

    In the poisonous case saga, the claimants averred that as a registered exporter with the Nigerian Export Promotion Council (NEPC), they could lawfully export the products of NBC to any part of the world.

    “In fact, Nigeria Bottling Company was aware that the products the purchased were meant for export,” he stated.

    Consequently, apart from other reliefs, the claimants demanded N15, 119,619.37 as special damages and N1, 622,000 being the money admittedly received from the claimants.

    The NBC, in its amended statement of defence filed by Mr. T. O. Busari, admitted supplying the products but contended that the product manufactured by the company were meant for local distribution and consumption as the company does not manufacture its products for export.

    Coca-Cola brand of soft drinks, he maintained is manufactured and bottled by various Coca-Cola franchise holders in most countries of the world, including the United Kingdom.

    The company denied that it was negligent in the manufacturing of its products as alleged, stressing that stringent quality control procedures were adopted in its production process to ensure that its products are safe for consumption of the final user.

    The company denied that the damages alleged by the claimants were occasioned by its negligence as the level of the chemical components in its soft drinks is safe for local consumption.

    It contended that the claimants’ claims are speculative, frivolous and vexatious and should be dismissed with substantial costs.

     

    Leadership unshaken by market threats

    With the enormity of this case which has dragged for nine years without the consumers knowing until the bubble burst recently, will Coca-Cola company brands market dominance loose grip, perhaps to competitors like AJE Group, maker of BigCola company which has a near perfect substitute for both Sprite and Fanta? Will 7Up and Pepsi step-up their game, seize the moment to snatch a slice of Fanta and Sprite market share? Will the consumer fear factor favour any of the competitors? Expert says “No”.

     

    Brand loyalty, bonding

    “Over the years, Coca-Cola Company has developed a thick skin for market assaults either from competitors, regulators or consumers. The Coca-Cola Company is one of the most renowned beverage companies in the world. It controls the largest chunk of the soft drink market around the world, distributing roughly 160 different products.

    According to Forbes Magazine, Coca-Cola is one of the world’s most innovative companies with a networth of $192.8 billion. It has invested on many social causes, such as campaign against obesity and other environmental causes. The kind of campaigns the brand flag is consumer-bonding, ‘Share A Coke’ campaign is an example of such greats.

    “Apart from that, the level of the brand bond with consumers, you can call it reckless but there is nothing you can do about it. The most important thing is for both regulators and the company to collaborate and resolve any issues having to do with safety.

    “This is because if the company sales drop, the entire global economy will feel it because there will be mass retrenchment, revenue drop for government.  So, nobody should rejoice over any marketing assault against the brand”, a marketing communication expert certified by the Association of Advertising Agencies of Nigeria (AAAN), who pleaded for anonymity, said.

     

    Will the leadership slip?

    While no one knows how the case will end? Some experts believe that the market sales will drop in the meantime with little or no brand shift to other competing brands like 7Up, Big Cole variants among others as a result of what expert termed “transferred fear factor”, a situation whereby consumers run away from a brand as a result of injurious effect and by extension do not want to near any similar brand.

    They believe that the consumers will move on with time. This expected drop in sales is believed will also affect subtitude brands.

    “The sales might slightly shift downward but on a short term outlook. The brands will pick up. It has a way of surviving issues like this everywhere it operates. This is no gain to a competing brand because of consumers’ orientation.

    The transferred fear factor will cause consumers to run away from similar brands. So, that is why I said it is no really a gain to similar brands like 7Up, Big Cola etch. So, I see Fanta and Sprite retaining their normal share of market till the dust settle,” said Aderoju Richard, a client relationship manager with a leading marketing communication firm who has worked on the Fanta, Sprite, 7Up and Pepsi.

  • Senate confirms 45 non-career ambassadorial nominees, rejects two

    Senate confirms 45 non-career ambassadorial nominees, rejects two

    Forty-five out of the 47 on the list of non-career ambassadorial nominees forwarded by President Muhammadu Buhari to the Seanate for screening were yesterday confirmed.  The upper legislative chamber rejected two and gave their reasons.

    The confirmation followed the adoption of the report of the Senate Committee on Foreign Affairs which recomended the nominees for appointments in its report.

    Rejected were 82-year-old Justice Sylvanus Nsofor (Imo State) and Jacob Daodu (Ondo State).

    Chairman of the screening panel, Senator Monsurat Sunmonu, who presented the report, said Nsofor was rejected owing to his frail looks and temperamental disposition.

    She added that the octogenarian also declined to recite the National Anthem when asked by the committee to do so during the screening.

    Mrs. Sunmonu said Daodu was rejected based on security report from the Department of State Services (DSS) which described him as “deceitful and corrupt” while in public office.

    He was once the chairman of the Ondo State Agency for Road Maintenance and Construction, as well as Commissioner for Physical & Urban Planning.

    Those confirmed were Uzoma Emenike (Abia); Aminu Iyawa (Adamawa); Godwin Umor (rtd) (Akwa Ibom); Christopher Okere (Anambra); Yusuf Tuggar (Bauchi); Baba Madugu (Bauchi); Stanley Diriyai (Bayelsa); Steven Ugba (Benue); and Baba Jidda (Borno).

    Others are: Etubom Asuquo (Cross River); Frank Efeduma (Delta); Jonah Odo (Ebonyi); Uyagwe Igbe (Edo); Dr. Eniola Ajayi (Ekiti); Chris Eze (Enugu); Suleiman Hassan (Gombe); Aminu Dalhatu (Jigawa); Ahmed Bamali (Kaduna); Deborah Iliya (Kaduna); and Dandatti Abdulkadir (Kano); Haruna Ungogo (Kano); Isa Dodo (Katsina); Mohammadu Barade (Katsina); Tijjani Bande (Kebbi); Y. O. Aliu (Kogi); Nurudeen Mohammed (Kwara); Mohammed Yisa (Kwara); George Oguntade (Lagos); and Modupe Irele (Lagos).

    They include: Musa Muhammad (Nasarawa); Ahmed Ibeto (Niger); Suzanne Folarin (Ogun); Afolahan Adeyemi (Osun); Ashimiyu Olaniyi (Oyo); James Dimka (Plateau); Haruna Abdullahi (Plateau); Orji Ngofa (Rivers); Sahabi Gada (Sokoto); Kabiru Umar (Sokoto); Hassan Ardo (Taraba); Goni Bura (Yobe); Garba Gajam (Zamfara); Bala Mairiga (Zamfara); and Ibrahim Ugbada (FCT).

    Senate President Bukola Saraki urged the ambassadors-designate to be of good conduct in their countries of sojourn.

    Saraki also enjoined the Federal Government to pay up all outstanding salaries and allowances being owed foreign missions to enable them deliver on their mandate.

  • Foreign missions set to get their groove back

    Foreign missions set to get their groove back

    For the better part of President Muhammadu Buhari’s two-year-old administration, the foreign missions have been without ambassadors. But, with yesterday’s confirmation of 45 non-career diplomats, the missions are set to rev into action, writes OLUKOREDE YISHAU

    In January, President Muhamamdu Buhari forwarded a list of 46 non-career diplomats to the Senate. Vice President Yemi Osinbajo, while acting as president, sent an additional name to make the list 47 in February.

    Before the January list, a similar list was sent late last year. It sparked a controversy. State governors protested to the Commander-in-Chief of the Armed Forces that they were not consulted. The list was subsequently rejected by the legislators, who were inundated with complaints.

    The Chairman of the Senate Committee on Foreign Affairs, Monsurat Sunmonu, suggested that the Senate should return the list of non-career ambassadors to the executive to allow for wider consultation before making another presentation.

    “There are about 200 petitions against the nominees and we don’t even know where to start,” Mrs. Sunmonu said.

    Two nominees, a former Deputy Governor of Plateau State, Pauline Tallen and Usman Bugaje, from Katsina State, turned down their offer.

    The governors elected on the platform of the ruling All Progressives Congress (APC) registered their displeasure over the list at a meeting with the President, who promised a review, which only happened after the Senate returned it.

    By the time the revised list came out, notable names, such as Senator Olorunimbe Mamora, had disappeared on the list. But prominent individuals, including Epe-born jurist Justice George Oguntade and Dr. Uzoma Emenike, wife of top Abia politician, publisher and Buhari’s ally, Chief Ikechi Emenike, were retained.

    At yesterday’s confirmation, two nominees, Jacob Daodu (Ondo) and  82-year-old Justice Sylvanus Nsofor, were rejected. The 45 others were cleared.

    Nsofor created a scene during his screening by the Senate Committee on Foreign Affairs. He declined to recite the National Anthem as requested by the committee. He argued with the members who could not hide their shock.

    Justice Nsofor was asked some questions by Senator Gbenga Ashafa (Lagos East), which included recitation of the National Anthem. He was eventually asked to take a bow and go.

    Nsofor, an indigene of Oguta in Imo State, was born on March 17, 1935. His reputation as a no-nonsense jurist manifested when, despite huge pressures to join the majority decision which upheld the election of President Olusegun Obasanjo in 2003, Justice Nsofor delivered a minority judgment. Not a few feel that “stubborn” decision made his stay at the Supreme Court memorable.

    He is described as hard working and upright. Many lawyers see him as a honest and disciplined jurist. Out of his 28 years in public service, Nsofor spent 13 at the Court of Appeal.

    Nsofor was Judge of the High Court, Justice of the Court of Appeal, and law teacher at Holborn College of Law in London. 

    Some of the ambassador-designates are expected to bring to bear their wealth of experience in their new assignments.

    One of such is Justice Isa Muhammadu Dodo, who proved his mettle as a revered judge of the Court of Appeal where he spent 11 years in the 1980s.  Justice Dodo returned to Katsina where he served as Khadi of the Sharia Court of Appeal from 1990 to 2004. He was Grand Khadi between 2004 and 2009 until he retired.

    Born in July 1944 in Katsina, he started his primary education at Gobarau Primary School where he spent three years and completed it at Katsina Central Primary School between 1953 and 1960. He proceeded to middle school and spent three years before moving to Katsina Training College from 1961 to 1965 where he earned a Grade II Certificate.

    He worked as a teacher, rising to an assistant headmaster in 1966. He was an inspector for area courts. In 1969, he earned a Diploma in English Law from Ahmadu Bello University (ABU), Zaria. In 1971, he earned an Advanced Diploma in Islamic Law from the same institution in 1971.

    He has been chairman of the Jama’atul Nasril Islam (JNI) since 2002.  He was Chairman of the Inter Religious Committee, and the Chairman, Sharia Commission. He holds the National Award of Officer of the Order of the Niger (OON), which he got in 2005.

    Another respected jurist is Justice Oguntade who served as Justice of the Supreme Court from May 19, 2004 to May 10, 2010.

    Born on March 10, 1940 in Epe, Lagos State, he graduated from Holborn College of Law in 1964 before proceeding to the Nigerian Law School in 1965. He was called to the Bar on January 15, 1966.

    He started his legal career in 1966 and was in it for 14 years before he was appointed a Judge of the Lagos High Court in September 1980.

    Oguntade was Presiding Justice of various Courts of Appeal until his elevation to the Supreme Court on May 19, 2004.

    He retired at 70 on May 10, 2010. Oguntade, who was appointed Chancellor of the Lagos State University Governing Council by Governor Akinwumi Ambode, was conferred with the Commander of the Order of the Niger (CON) in 2005 and Commander of the Federal Republic (CFR) in 2010.

    Fifty-two-year-old Mrs. Emenike also holds a lot of promise. The Umuahia North indigene, who was born in Kano, holds a 1985 B.Sc. degree in Sociology and Anthropology from the University of Maiduguri and a Master’s degree in International Law and Diplomacy from the University of Lagos. In the UK, she earned a M.Sc. degree in International Management and a Bachelor’s degree in Law.

    A former Foreign Service Officer, Dr Emenike joined the Nigeria Foreign Service in 1987 and served in various departments in the Ministry of Foreign Affairs. She represented Nigeria at several bilateral and multilateral meetings, home and abroad.

    She served in the Nigerian Embassy in Abidjan, Cote d’Ivoire for six years as a career diplomat.  She retired from service to earn a doctorate degree in International Relations from the University of Reading in England.

    She is also the writer of the authoritative book: “Africa: The Centre-Piece of Nigeria’s Foreign Policy”. Dr Emenike is married with four children.

    Also to watch is Ahmed Musa Ibeto, a politician from Niger State. Born on January 15, 1959 at Ibeto, headquarters of Ibelu District of Kontagora Emirate in Niger State, he attended Government Secondary School, Rijau.

    His got his first job a classroom teacher in 1977. That was shortly after his secondary school. He was briefly a Clerical Officer with the Federal College of Education (FCE), Kontagora from 1978 to 1979.

    Ibeto was at Zungeru College of Advanced Studies (ZUCAS), Bida, from 1979 to 1980 and proceeded to the Usman Danfodio University, Sokoto where he graduated with a Bachelor of Arts Degree, History, in 1985.

    He was elected Chairman of the then Magama Local Government in 1987 and left the position in 1989 to serve as the Deputy State Chairman of the defunct National Republican Convention (NRC). He later became the State Secretary of the party, a position he held from 1990 to 1992.

    In 2003, he became a member of the House of Representatives and served as the Deputy Chairman, House Committee on Power and later, Chairman, House Committee on States and Local Governments. By 2007, the then governor, Babangida Aliyu, made him his deputy and they both served till 2015.

    Eyes will also be on Ambassador Baba Ahmed Jidda, a former Permanent Secretary in the Borno State Civil Service and a director at the Federal Civil Service. He holds a Master’s Degree in Development Economics and a Post-graduate Advanced Diploma in Development Administration from Manchester University, United Kingdom. He earned first degree in Political Science from the Ahmadu Bello University (ABU), Zaria.

    He was also Nigeria’s Ambassador to Burkina Faso  between 1999 and 2001; Senior Special Assistant to the President on National Emergency  from 2001 to 2003; Secretary to the State Government and Head of Service  from 1997 to 1998;  Special Assistant to the Minister of Solid Minerals in 1996; and Special Assistant to the Minister of Petroleum and Solid Minerals  in 1993.

    In 2005, he joined one of the legacy parties of the APC, the All Nigeria Peoples Party (ANPP) because of President Buhari.  Jidda participated in the Constitution Reform Conference of 2005 and the same year, he was appointed the Secretary to the State Government (SSG).

    He received the Officer of the Federal Republic (OFR) in 2010.

    Respected linguist and historian Prof. Emeritus Dandatti Abdulkadir will also be on many people’s radar. He was the fourth Vice Chancellor of the Bayero University, Kano (BUK). He served from 1986 to 1991.

    Abdulkadir, who was born in 1942, was one of the 10 pioneer students of BUK in 1964. After graduation in 1967, he was retained by the university and in 1968 earned a scholarship to further his studies in the United States (U.S.) where he got a Master’s degree in African Language and Literature. He returned to BUK and continued teaching and in 1973, received another scholarship for a doctorate programme at the Indiana University, USA. He specialised in Folklore with African Literature and African Political Science as a minor.

    He earned his PhD in 1976 and returned to the BUK, where Hausa Language and Literature became his area of concern.

    Abdulkadir thereafter served as the Deputy Vice Chancellor (Administration) and Nigeria’s ambassador to Libya.

  • Banks, customers at war over 150%  import cover

    Banks, customers at war over 150% import cover

    Commercial banks and their customers are at war. It is over 150 per cent coverage introduced by the banks for Letters of Credit (LC) applicants seeking dollars for raw materials import. The coverage is to insulate the banks against dollar scarcity and naira volatility. The banks want the coverage on all LC transactions, but customers see the move as arbitrary and painful, writes COLLINS NWEZE. 

    For importers and manufacturers, whose businesses depend on dollar availability to thrive, this is not the best of times. With the continued dollar scarcity and unending naira volatility against world currencies, banks are introducing new transaction terms for customers applying for open Letters of Credit (LCs) to import raw materials.

    Manufacturers and importers, who have been groaning under rising interest rate as high as 30 per cent per annum and high transactions fees, would have the 150 per cent being introduced on all LC transactions to contend.

    The 150 per cent cover was introduced last year when the naira outlook became uncertain and the banks decided to build the transaction risks around their customers. The Banks are

    The introduction is taking its toll on manufacturers. A Lagos-based newspaper printing company narrated its experience with its lenders when it opened LCs to enable it secure dollars to import raw materials.

    “I must confess to you that our experience has not been palatable at all over the past two years. Last year, after so many struggles, we were able to establish some LCs to bring in some of our raw materials. Subsequently, it has not been the same thing, because our attempt to get forex through more LCs after the March episode had not been possible,” an official of the newspaper’s told The Nation on condition of anonymity.

    The official explained that the company had approved Form ‘M’ with GT Bank for $70,000 to import printing ink from Europe. But the bank kept the naira equivalent for nine months without providing the dollar needed for the transaction.

     

    Failed transaction

    It said: “Our naira was with the bank, and was not yielding any interest for us. We could not touch the naira. By last December, we decided to withdraw the money after the transaction failed. The one we did in 2016 was through Sterling Bank, which was successful. It took us time to source the dollar, but it was eventually done at the rate of less than N200 to dollar in March last year.”

    Explaining the difficulties manufacturers had in sourcing dollar for imports, the introduction of flexible foreign exchange policy by the Central Bank of Nigeria (CBN) compounded the situation.

    With that policy in place, importers and manufacturers were sourcing dollars at the parallel market rates.

    The source went on: “But for a newspaper house, we cannot buy dollars at the parallel market rate because even when we buy at the official rate, the cost of producing a copy of any newspaper is higher than the cover price even when you get the dollar at the official rate, let alone when the dollar came from the parallel market. So, we deliberately refused to source for dollars from the parallel market. We relied on the banks,” he said.

    The firm’s worst experience came when it opened a $1.8 million (about N600 million) worth of LC with Zenith Bank.

    It said: “The raw materials we needed were newsprint, ink, and Chemistry, among others and were meant to last us for six months. But, we had only N420 million instead of N600 million and we advised the bank to do an LC worth N400 million and subsequently reduced our order for raw materials.

     

    At the mercy of banks

    “But when they converted the N400 million to dollars, it was of about $1.2 million at the rate of N320 even when the official rate was between N305 and N310 because we wanted the interbank bidding to be successful. Everything came to about N420 million, but the bank said we can only deal if we deposit 150 per cent of the $1.2 million in naira value.

    “The bank had already overstated even the rate, to avoid any fluctuation. That means that we were depositing N480 to every dollar, which was even far higher than the rate in the parallel market.

    At the end of the negotiations, the bank urged the company to deposit N680 million to cover the entire transactions, and it turned out a big frustration for the firm.

    “We refused to deal, because we did not have the fund. We explained to the bank that already gave room for rate fluctuations and there was no need to provide 150 per cent cover as being requested.

    The bankers went back and forth, consulting with their head office and directors. The transaction was finally approved and the bank accepted 100 per cent cover for the transaction after negotiations that lasted between four and six months.”

    It was learnt that the 150 per cent import cover has become an accepted practice in the industry. The Indians, it was learnt, are willing and ready to establish LCs at any condition set by the lenders, and this has affected genuine importers and manufacturers.

    The industry source said: “Besides, the interest rates we are paying in such facilities were very high. We were charged 28 per cent by Sterling Bank; GT Bank charged us 21 per cent.

    “We understand that First City Monument Bank (FCMB) is charging customers 30 per cent per annum and 150 per cent import cover. These are the predicament that manufacturers and importers are facing, which I want the CBN to look into. The banks also take several fees, such as LC establishment charge, management fees, and all sort of other charges.”

    The source said that establishing an LC should not take more than two weeks, but is extending to several months because of the stringent rules being set by commercial banks.

    It said: “The CBN is aware of the development. It should look at what is going on in the foreign operations unit of banks. If the dollar is there, one should be able to establish an LC within two weeks, if you submit your Proforma invoice, approved Form ‘M’ and other requirements. The approved Form ‘M’ is processed online, which is then followed with making the naira cover available.”

    According to the source, the ongoing delay in LC establishment, rising fees and extra naira cover are affecting the prices of goods and services.

    “All these push up cost of running businesses and products. There is price in-elasticity in the newspaper industry, because we cannot unilaterally raise the prices and so, the company is forced to absorb the extra costs”, the sourecsaid.

    Another manufacturer and Managing Director, Rockview Integrated Services Limited, Obinna Chizom, shared his own experience.

    Chizom said: “Our business started experiencing a slowdown after mid last year after we failed to secure the needed forex to import raw materials. We initially funded our account with the bank at 100 per cent but our account officer called after three months demanding that the bank’s new rules require we fund the account by 150 per cent. The worst was that the bank refused to lend us the 50 per cent extra cash. We ended up withdrawing the cash and our business is going down at present.”

    He said there was no possibility that the bank will refund any excess cash from the transaction if he succeeded in securing the extra 50 per cent.

     

    Push for real sector

    His words: “I want the CBN to look into the matter and call the banks to order. The CBN should remember that only the real sector that will bring in the desired changes we are all expecting to happen in the economy. When the banks work against the interest of manufacturers and importers, it is going to affect the economy.”

    A former Keystone Bank Executive Director, Richard Obire faulted the 150 per cent import cover by banks, describing it as illogical and capable of putting the companies at the receiving end of the transactions.

    He said: “That practice is wrong. The banks should charge the customer for the risk through a mutually beneficial rate and then move on to carry the risk of the transaction instead of shifting it to the customer.

    “In forwards forex contracts, the prices of the naira against dollar should be agreed with the customer and the dollar delivered to the customer at a future date without default.”

    The banks no longer show interest in taking any risks, yet they want to make huge profits, Obire said.

    He said: “The banks want to get both the funding and liquidity from the customer beyond what the customers can afford. I suspect that since the dollar liquidity is still low, many banks want to ration the available dollar by setting tough conditions that only a few manufacturers can meet. The extra 50 per cent cover is going to give the bank float, and enhance their profitability within the period of the transaction.”

    Obire urged the banks to go for pricing-based negotiation instead of asking for 150 per cent cover.

    “The banks should chose the rates that cover their risks instead of demanding for 150 per cent cover, because not all companies have the level of liquidity that can absorb such conditions,” he advised.

    The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, also kicked against the policy, describing it as unfair.

    “It is an unfair practice which should be discouraged. The extra 50 per cent cover is too high. Besides, many of the manufacturers might have borrowed the fund, and have to contend with high interest rate,” he said.

     

    Demand for low interest rate

    Some manufacturers have urged the CBN to initiate policies that would encourage lower interest rates and stimulate economic activities. The Monetary Policy Rate – the benchmark interest rate remains at 14 per cent since July 2016 and is unlikely to be reduced as the Monetary Policy Committee (MPC) meets today and tomorrow.

    The meeting is the committee’s second in the year and it is meant to review major global and domestic economic developments since its last meeting. The projection is that the MPC will retain the benchmark interest rate- Monetary Policy Rate (MPR) at 14 per cent, Cash Reserve Ratio (CRR) at 22.5 per cent and liquidity ratio at 30 per cent.

    The meeting will be coming on the back of a continuous decline in the nation’s domestic output, inflationary pressures, weak earning scorecards and forex market challenges, though some improvements seem to have been recorded in fiscal policy administration.

    Not a few local and multinational companies have said that a dollar shortage, driven by the oil price crash is forcing local suppliers to patronise black market for the dollar, thereby pushing up their operational cost of.

    The naira has been under pressure since the start of the oil price rout mid-2014 when crude oil prices dropped significantly.

    The South African retailer Truworths and many other multinational firms quit the country, citing import restrictions and the inability to access forex among the reasons for its decision. Unilever Nigeria and Guinness Nigeria have all complained about challenges of sourcing forex.

    But Head, Currencies Market at Ecobank Nigeria, Olakunle Ezun, said the practice was in order and that the banks were acting in good faith.

    He said that the 150 per cent import cover was adopted by banks to enable them hedge against rising currency risks.

    Ezun said: “There is this fear of devaluation, or the fear that the value of the naira might depreciate, so, a lot of banks want to hedge themselves against these risks. If a bank is opening an LC of about $30 million and asks the customer to fund the account by providing a more liquid naira.

    The bank might demand that the customer provide naira cover for $45 million. There is a buffer of $15 million above the rate. The major issue is just about the uncertainty or un-quantified risk that surrounds the naira value at present,” he said.

    Ezun explained that at the point of opening the LC, the naira may be N300 to dollar but by the time the LC was maturing, the naira could have depreciated to N350 to the dollar.

    He said: “At that point, it would be difficult to call the customer to come and top up their account to cover the gap in the LC. The bank may not even be able to see the customer again.

    “That is why the bank will from the start, ask the customer to provide a buffer, in case there is naira depreciation, the buffer would be able to cover for that depreciation.”

    Explaining further, he said that over time, banks have created unwanted loans for themselves. Bad loans in the local banking system soared to more than double the limit set by the CBN as the industry struggles with an economic downturn.

    The ratio of non-performing loans rose to 11.7 per cent at the end of June from 5.3 per cent at the end of 2015, the CBN, which requires banks to keep the measure below five per cent said.

    He said: “In most cases, when those depreciations happen, bad loans are created for the banks. In most cases, those customers may not come back to service the loans, and that will lead to rising bad loans.

    “The counterparty like the JP Morgan, HSBC, Citibank, among others are not seeing the customers, they are seeing the local bank. These local banks have learnt their lessons over time.

    “For me, I do not see issues in the banks asking for the 150 per cent buffer. What is important is the interbank funded forex forwards is secured. You are buying a 90-day forex from the CBN, and you are providing naira cover for it.

    “Nobody is sure what will happen to the naira in 90 days. If you are sure that in 90 days, the naira will be available at the right price, there would not be issue of asking for buffer. Even at the time you need to honour your obligation, dollar may not be available at the official rate at N305 to dollar. You may need to service your obligation at the parallel market,” he said.

    Ezun said banks have learnt their lessons in a very bad way.

    He went on: “Today, we are talking about rising bad loans many of them from the oil and gas sector. That is why at the end of the day, they want to hedge themselves against several risks.

    “The banks need to think ahead. The bad loans are dragging down banks’ profitability and must be stopped. The only way is to provide a buffer, to ensure that the customer is committed to that transaction. That way, he cannot walk away from it.

     

    Security for loans

    “The banks have learnt to pass the risks to the customer, rather than to themselves, so that there will be no need to create loans that the customers will walk away from. The customer will tell you they did not request for the loans, and are not obliged to pay. The 150 per cent started around last year when the naira outlook became uncertain.”

    Ezun said that if after the transaction, the extra 50 per cent was not used, the customer should be refunded.

    He said: “The transactions are open and transparent. There will be a contract letter that the customer will sign, which empowers the bank to act. It follows a willing buyer and willing seller model. The terms are open. There is no ambiguity from day one.

    “The banks would have told the customer that getting the dollar was not automatic, it would depend on the availability of dollar from the CBN. By funding the accounts shows seriousness on the part of the customer because many customers will open LCs in different banks and ask banks to bid on their behalf. But they have to fund the transactions upfront.

    “I am not sure any customer has the luxury and cash liquidity to play around several banks. So, dollar availability is based on supply from the CBN. Even the CBN will tell you that dollar supply is not sure. So, there is no need to make a commitment to the customer that supply is sure.

    “The 150 per cent cover is happening because there is low dollar supply. Even before now, banks used to run after customers to come and open LCs. But today, customers are begging banks to open LCs for them. In those days, when forex was everywhere, banks will market LC customers.”

    Explaining further, he said that banks will prefer to do LCs for customers that funded their accounts with their own cash, than for those borrowing from the banks to fund such LCs.

    “No bank today wants to grow its bad loans positions, because bad loans are weighing down on profitability. Shareholders want returns on their investments and the demand for 150 per cent cover will continue until when forex supply increases, and then no bank will have the gut to ask a customer to provide 150 per cent cover,” he said.

    Managing Director, Afrinvest West Africa Plc, Ike Chioke, said that the CBN’s new forex directives to banks, to provide Personal Travel Allowances (PTA) and Business Travel Allowances (BTA) within 24 hours and medical and school fees within 48 hours to meet demand, has also eased some of the pressures in the parallel market with exchange rate appreciating 14.3 per cent since announcement.

    Chioke said in an emailed report: “Whilst we believe the successful implementation of the new forex directive has eased pressure in the parallel market, flexibility in pricing and allocation of forex at the interbank market remains a sine qua non to restore confidence in the system and reinstall a market framework that would lead to a gradual normalisation of rates and also attract the much needed foreign capital into the economy.”

    The CBN has consistently preached transparency in forex transactions handling. The apex bank renewed its commitment to continuously and to vigorously pursue a transparent, liquid and efficient forex market. It, therefore, foreclosed tolerating unscrupulous actions and that it would wield the big stick against erring offenders, be they banks, or their employees.

  • Exposed: How corruption, favouritism thrive in UNILORIN (III)

    Exposed: How corruption, favouritism thrive in UNILORIN (III)

    In this third and concluding  part of his series on the University of Ilorin, Kwara State, Assistant Editor ADEKUNLE YUSUF reveals more dirty details of the rot in the 42-year-old university

    •Continued from yesterday

    Shortly after Prof. Ishaq Oloyede left office, his administration was accused of speedily granting an award of N22 million to two members of staff who are alleged to be his relations before he left office in 2012. One of them is his son, Ayopo Oloyede Abdulkarim, an Assistant Lecturer in the Department of Telecommunication Science. The second beneficiary is Mrs. Fatihah Adeyinka Odumosu (nee Oloyede) of the Department of Physiology. Records showed NI7 million went into the pocket of Ayopo Oloyede and N5million to Mrs. Odumosu. At the time, a group known as the University of Ilorin Stakeholders Forum (UISF), which called for the probe of the awards, insisted that the awards were illegally granted, alleging that it was  nepotism since Ayopo is the biological child of the former VC while the second beneficiary was alleged to be his distant cousin.

    It was also alleged that by the time Ayopo requested for the favour, via a letter dated February 22, 2012, he was yet to be a staff of the university. The young Oloyede was only given his letter of appointment on June 28, 2012 vide a letter reference number UIL/S SE/ PF/5023. It was signed by Oyeyemi, then registrar. Barely two months later, precisely on August 24, 2012, the university granted the request, vide a letter signed by Adegoke. His father was to justify the speedy approval and disbursement to the awardees, saying nothing was done outside rubric of due process.

    “The Governing Council of the University, in May 2007 before I became Vice-Chancellor, decided to suspend the requirement that a newly recruited academic staff should spend a minimum of two years before he could go on study leave. Consequently, lecturers of the university were released on Staff Development Awards (SDA) scheme, which only consisted of paying their salaries, to pursue their PhDs anywhere in the world,” he said.

     

    Lopsided promotions

    Ordinarily, it is supposed to have fizzled out of memory. However, despite the passage of time, the hurried appointment of Mrs. Bamitale Janet Balogun is still being widely reviled, if not regularly spurned among academics that lay claim to integrity credentials in UNILORIN. At the time of her appointment in August 2013, she was the wife of the secretary of the local faction of the Academic Staff Union of Universities (ASUU) that is robustly loyal to the administration. Touted as part of the gale of appointments without the due process in UNILORIN, Mrs. Balogun, now in her mid-fifties, was employed as Assistant Lecturer on temporary appointment into the Department of English Language, even without any interview whatsoever and without being recommended by the Head of Department or Dean of the Faculty – against all extant rules governing academic appointments.

    Despite all subtle protestations by the Head of Department of English Language that there were more suitably qualified persons, who had been interviewed, found employable and were merely waiting for appointment letters, the powers that be foisted Mrs. Balogun on the system. It was a case of fait accompli of sort, an appointment many lecturers see as a favour to her husband who, until he died, was one of the chieftains of ASUU who enjoyed the ears of the university authorities. Going by the written objection of the HoD, Mrs. Balogun’s area of specialty was not also very much needed at the time, but UNILORIN ignored all this.

    One of the casualties of this decision whose fate suffered a body blow at the time was one Mrs. O. Adeoti, who was the department’s best graduating student in 2003 and a doctoral student in the same department then. Her case was tabled before the university authorities by her department, but nothing was done. Against what has become the norm in the university, it was because her candidature was not backed by any big name in the system, sources said. Like others who waited in vain after being recommended for employment, Mrs. Adeoti had been interviewed, found employable and recommended for employment long before the issue of Mrs. Balogun, with a Master of Arts in English Language, surfaced through the VC’s office.

    “The Department’s 2003 best graduating student, who is also a present PhD student in the Department, Mrs. O. Adeoti,  had been interviewed and found appointable to the post of Assistant Lecturer in English Language, which Mrs. Balogun has now applied to. We were actually awaiting a response in respect of Mrs. Adeoti sir. There is also the dire need of the department in respect to Literature-in-English lecturers. There were, in the 2012/13 session, only five Literature-in-English lecturers on the ground as against eleven language lecturers. It is evident that Literature-in-English lecturers were overburdened with courses,” the HoD commented on Mrs. Balogun’s application letter, which did nothing to sway the university leadership who forwarded an already approved application and asked him to “please comment on the approved applicant”.

    That is not the only absurdity trailing her recruitment, critics said. At the time of her appointment, records show that Mrs. Balogun was already 49 years old. Many lecturers therefore argue that she was too old for such an entry-level academic job, which may limit her contributions to the system. Thus, they see her appointment as a clear subversion of public service rules on the age of people that can be employed into trainee cadres – since Graduate Assistantship and Assistant Lecturership are trainee cadres.

    But if the fuss that greeted Mrs. Balogun’s appointment calls for a thorough probe, it may pale into insignificance when compared to the “extreme lopsidedness” that is at the heart of multiple promotions enjoyed by another “administrative errand boy” in the Department of Computer Science. Reviled as a reference point in the “scandalous wave of unbridled favouritism thriving in UNILORIN,” not a few pooh-poohed the frenetic rise of Dr. Rasheed Jimoh. As at January 2011, he was still an Assistant Lecturer in the university. At the time, he was in a Malaysian university battling with writing his PhD dissertation and how to defend same. On his return, Dr. Jimoh was promoted to Lecturer II in February of 2011, having earned same with a fresh-minted PhD certificate.

    And by October of 2011, the young lecturer was elevated again to Lecturer I – in a style that is said to be both strange and unknown to all rules and regulations governing promotions in academic circles, but which the tenure of Prof. Oloyede was said to have promoted to no end. As if that was not enough, he was propped up again to Senior Lecturer rank on October 12, 2012 and, later Associate Professor – a generosity that has helped him bypass lecturers, who taught him during his undergraduate days. Within this short period of less than four years, Dr. Jimoh has oddly enjoyed nothing less than four promotions. Besides this, he has also served as HoD, bossing his colleagues as well as former instructors around. And without exuding any spectacular erudition or parading academic feat in terms of a breakthrough in research that sets him apart from peers, he has now been tipped to man one of the most important units in the university – thanks to his ‘loyalty’ to the authorities.

    Although some people in the system insisted that no rule was broken, another case that some lecturers say reeks of nepotism is that of Mr. Ibrahim Abdulganiyu Ambali, VC’s son in the bursary section. The young Ambali’s wife (Mrs. Rabiat Gambari-Ambali) was granted external study leave in 2014 and the young man was allowed to join her in the United Kingdom on no known grounds, such as study leave, leave of absence, etc. Yet the university continues to pay the salary of a man that can best be described as an AWOL. However, those close to the family said the husband and wife are both being expected back this year.

    Like most appointments in the last ten tears, Adam Abdulrahman Idoko was appointed on temporary basis in the Microbiology Department. Later, at the ‘regularisation interview’ where he was the only candidate, having been appointed and having assumed duty anyway, he was said to have performed so poorly that even his godfathers admitted out of rare candour that his appointment could not be rationally sustained. However, instead of dismissing him outright for being unfit, he was asked to continue on ‘probation.’ But to the chagrin of other workers, in the interim, he was processed for overseas study and whisked abroad, which some lecturers in the department said the university usually denies otherwise qualified candidates. He is now back in the system – a situation which academics in his department say underscores the sham and danger of temporary appointments because Mr. Idoko would not have been employed if there had been advertisement and competitive interview.

    “It shows how qualified persons are deprived of positions and how the nation is being destroyed by filling positions with incompetent persons, thereby perpetuating a cycle of incompetence. It also shows how sycophancy and subservience has come to dominate the academia. Authorities prefer the temporary appointment mode because it enables them to fill positions with relations, friends and cronies or as favours, thereby ensuring the subservience of all without regard to merit or competence,” a senior academic in the department said.

    An alleged impropriety involved in the appointment and promotion of Mrs. Taiwo Toyin Ambali, one of the wives of the UNILORIN VC, has triggered a seething controversy. The kernel of the dispute is the fact that she was employed as Lecturer I on a temporary appointment in 2015, and then promoted to Senior Lecturer a year later, which sparked protests among her colleagues who insisted that her appointment and promotion were in clear breach of regulations guiding academic appointments and promotions.

    Born on July 10, 1958, Mrs. Ambali joined the services of UNILORIN in 2015. The VC’s wife obtained a Bachelor of Education degree in Adult Education from the University of Maiduguri in 1996, a Masters and a PhD also in Adult Education from the same university between 2003 and 2014. She was a lecturer in the Department of Continuing Education and Extension Services at UNIMAID before UNILORIN, where her husband is the VC, offered her appointment as Lecturer I and promoted her a year later. Her letter of appointment was dated July 30, 2015, with reference number UIL/SSE/PF/6237, putting her on step 7 of the CONUASS 04 in the Department of Adult and Primary Education. The letter conveying the good news of her promotion was dated September 30, 2016, with reference number UIL/SSE/PF/6237.

    Unlike her appointment letter which was signed by the Registrar, Emmanuel Obafemi, Mrs. Ambali’s letter of promotion was signed by M.S. Adegoke, on behalf the Registrar.

    “I am directed to convey approval of your promotion to the post of Senior Lecturer on CONUASS 05. Your new salary will be N3,101,505.00 per annum i.e. step 1 of CONUASS 05 with effect from October 1, 2016. I wish to congratulate you, on behalf of the University Council, and to urge you not to relent in giving your best in the service of the university,” the letter read. However, rather than congratulatory messages from colleagues, her promotion sparked an outrage among vocal academics, who cried blue murder that her appointment and promotion were anomalies that should not find expression in an academic environment.

    Among other things, critics are miffed that her appointment was done without prior advertisement – contrary to rules governing academic appointments of that status. Besides, appointing a recent PhD holder as Lecturer I was also said to be overindulgence, an action that some lecturers said breached academic rules and procedure. According to regulations in UNILORIN, advertisement indicating a vacancy for the position should have been done before she was allowed to join the system. It is also clear in the rules that no academic staff can be promoted from one cadre to another until after three years of meritorious service. Even for academics that have stayed on the job for years and later obtained PhD, they are only awarded Lecturer II on attainment of the highest academic degree, prompting critics to query the rationale for promoting Mrs. Ambali, who has less than ten years’ experience as a lecturer. As if this was not enough, Mrs. Ambali was rewarded with promotion to Senior Lecturer – all within a year as Lecturer I in UNILORIN – when regulations governing academic promotions are explicit that promotion from one rank to another cannot be countenanced until after three years. And this can only come after due confirmation of appointment.

    Interestingly, the local faction of ASUU has kept mum on the matter.  It perhaps sees nothing wrong in the appointment and promotion of Mrs. Ambali. But the faction recognised by the parent body of ASUU would not allow such alleged infractions to go unchallenged. Although it controls the minority followership, the critical faction has been a pain in the neck of the university authorities, having lately written petitions to anti-graft agencies alleging colossal fraud in pension deductions, extortion of students, lack of transparency in contract awards, among other weighty allegations.

    Led by Dr. Kayode Afolayan and Dr. Solomon Oyelekan, chairperson and secretary, respectively, ASUU railed against the “heinous acts of nepotism and favouritism”.

    According to ASUU officials, what it means, in essence, is that Mrs. Ambali has been placed ahead of her superiors by nothing less than six years, thus further “bastardising the concept of merit and academic integrity.”

    Because she now enjoys salaries that she would not have earned until about six years’ time, they claim the promotion has awarded the VC’s wife unmerited monetary benefits – at taxpayers’ expense – thereby adding to the economic adversity of the nation. In a letter addressed to the VC on February 6, ASUU spelt out the “illegality of Dr. Taiwo’s appointment and promotion.” Acknowledging that while the appointments and promotions committee (AP&C) headed by the VC is responsible for appointments and promotions, ASUU insisted that the committee must be seen to be doing so within the ambit of the law and regulations.

    The union, therefore, demanded “immediate reversal of the illegal and nepotistic awards to Mrs. Ambali by the current administration headed by her husband,” maintaining that her appointment and subsequent promotion within a year cannot be morally, legally or administratively justified. Accusing the university authorities of bias and nepotism, ASUU maintained that Mrs. Ambali’s initial appointment should have been to the position of Lecturer II instead of Lecturer I, and that she was not in any way due for promotion until after three years of her previous appointment or promotion.

    “It is also worthy of note that, while constantly violating and manipulating regulations to enhance the careers, economic status and social standing of its relations, friends and cronies, the same administration keeps violating and manipulating the same regulations by constantly shifting the goal posts to keep down other staff, thereby treating them as slaves. This is morally reprehensible,” ASUU said.

    UNILORIN descended on ASUU officials. It slammed the duo of Dr. Afolayan and Dr. Oyelekan with queries on February 6, accusing them of “serious acts of misconduct” and “malicious allegations and publications”.

    The query, with reference number UIL/SSE/PF/471, gave the union leaders 48 hours to explain why disciplinary action should not be meted out to them. Asserting that it has received a report, which has “disclosed a prima facie evidence of acts of misconduct” against the two lecturers, UNILORIN alleged that the duo circulated or caused to be circulated a leaflet “containing words and allegations that are considered to be bluntly disrespectful and insurbordinating to the office of the Vice Chancellor, which in effect has challenged the integrity and fairness of the university administration”.

    The university went further to claim that, in the  leaflet, the two union leaders “made some malicious statements and claims capable of inciting staff and students to protests, agitation and violence targeted at disrupting normal academic activities on the campus”. The leaflet was also said to have been “calculated to undermine the authority of the university, its peace and order”.

    Although UNILORIN requested that the lecturers should respond to the query within 48 hours, a day after issuing the query, precisely on February 7, it suspended the duo.  The bad news was conveyed in a letter with reference number UIL/SSE/PF/4471. It was signed by the Registrar.

    The suspension letter reads: “The Vice Chancellor has directed, in exercise of the powers conferred on him by section 8.4.2 (d) (i) of the Conditions of Service for Senior Staff of the University of Ilorin, that you be suspended from duty from the date of this letter, pending the outcome of the investigation into your alleged acts of serious misconduct bordering on insubordination to the office of the Vice Chancellor, circulation of malicious statements and claims capable of inciting staff and students to protest, agitation and violence targeted at disrupting normal academic activities on the campus as earlier communicated in a letter of query issued to you dated 6th February, 2017.”

    The letter concluded that “you are hereby suspended from duty. You are to hand over all the university property in your possession to your Head of Department forthwith. By a copy of this letter, the Bursar is being requested to place you on half pay pending the determination of your case. Please leave your residential address, email and phone number with your Head of Department for purpose of reaching you without hindrance should the need arise.”

    Dubbing it a victimisation of its officials, Ibadan zone of ASUU (comprising universities in Oyo, Osun and Kwara states) flayed the action of the university “as an act of illegality and cowardice.” It added that the VC acted as a judge in his own case by querying and suspending the duo for merely raising allegations against him and his wife.

    “This latest act of illegality and cowardice by the Vice Chancellor of University of Ilorin is a classic case of corruption fighting back when you fight corruption. The Vice Chancellor also showed extreme lack of decency or decorum by acting unilaterally as a judge in his own case (as the allegations are against him and the latest also involve his wife) without at least waiting for the intervention of the University Council. How do you suspend union officials for making allegations against you without first being absolved of the allegations which are before the relevant government agencies?

    “After enjoying fifteen years of uninterrupted corrupt practices due to suppression of authentic union representation and critical voices, the university is now fighting tooth and nail to banish the new ASUU executive from its campus in order to continue its corrupt practices without challenge. By appointing his wife on ‘temporary appointment basis’ (while many PhD staff who had put in years of service in the university are still on Lecturer II even after PhD), and by promoting her after only one year (when all other staff have to wait for three years), Professor Ambali certainly breaks new grounds in corruption and indecency,” Dr. Ade Adejumo, zonal coordinator of ASUU, said in a statement.

    The union warned that the “actions by the University of Ilorin pose a great danger to democracy, to decency, and to the anti-corruption efforts of the present government. How can the government proudly claim that it is encouraging citizens to ‘blow the whistle’ against corrupt officials while allowing its agencies to openly victimise whistleblowers? If university officials can be so openly corrupt under the glare of anti-corruption agencies, then what is the future of the fight against corruption? And how can democracy and justice thrive when a University, an institution that is supposed to nurture leaders and democrats, openly practise dictatorship and illegality while suppressing debate or dissent?”

    The VC has, however, faulted ASUU’s stance, saying the promotion of his wife followed due process. At an interactive session with reporters, the VC provided clarifications on his wife’s promotion, saying it was not illegal. He explained that the promotion of any academic staff is the sole responsibility of the Appointments and Promotions Committee, stressing that Mrs. Ambali was duly promoted following legal procedures. “My wife commenced her career at the University of Maiduguri as a Lecturer II officer in 2006 and was promoted to Lecturer I in 2009. She later transferred her service to the University of llorin and was recently promoted to the rank of Senior Lecturer by the AP&C. This act was sequel to the approval of both the department and faculty management team.”

    Prof. Ambali restated that the university is run on committee basis, which he said makes it impossible for anybody to “singlehandedly do anything without due process and approval of the committee concerned and such decision will also be carefully scrutinised before final approval is given”.

    “The VC comes at end of the equation. When it comes to committee’s deliberation and it concerns those who are close to the VC, the VC usually steps aside during the deliberation so that people within the committee can feel free to deliberate on it. That is exactly what happened. She has almost 10 years of university teaching experience,” the VC said.

    But Dr. Afolayan also fired back, picking holes in the explanations by the VC.

    “If you look at the promotion letter, when she got to University of Ilorin, she was promoted to lecturer 1 on temporary basis. Even then, she ought to spend three years in the University of Ilorin before she can be promoted to Senior Lecturer. She was also promoted to Lecturer 1 on Level 7, which would mean that she had spent seven years as Lecturer 1, which is another wrong information. When the AP&C was to meet, her own (Mrs. Ambali’s) case was treated specially. The Vice-Chancellor had said he did not know about the promotion, how come he is now saying it is legal? He formed a special panel for his wife and promoted her to Senior Lecturer. The promotion ought to have come in 2018.

    “Even if she were to be promoted on accelerated basis, there should have been a newspaper advert stating that there is vacancy in the position of Senior Lecturer in her department. But none was done. They promoted her on special recognition without following due process, which is totally wrong. The Vice- Chancellor cannot feign ignorance in the case and cannot defend it. You don’t transfer years of service from Maiduguri to Ilorin,” Dr. Afolayan said.

     

    Fears of UNILORIN dons

    A past ASUU leader in the school, Dr. Taiwo Oloruntoba-Oju, believes there is a deep-seated displeasure about what is going on in the university. He added that most people who look as if they are cowed are merely afraid of reprisals.

    “The system is filled with cronies of the current and past VCs, often incompetent persons through an abuse of the temporary appointment mode of appointment. The cronies running into hundreds consider themselves indebted to the current and past VCs and would always do their bidding whether legal or illegal. They constitute a severe limitation to the university, which is supposed to be built on a system of merit and excellence. The country cannot develop with this mode of populating the academia with incompetent hands. Apart from enthroning a cycle of incompetence, it also serves as a disincentive to otherwise competent and hardworking persons. This amounts to double jeopardy, but the country is the overall loser,” he cautioned.

    Significantly, all the issues bordering on improprieties in the university – ranging from allegations of corruption, nepotism, favouritism and disregard for due process – were staunchly debunked by the VC. While fielding questions in an extensive interview with The Nation last September, Professor Ambali dismissed all the issues as mere figments of imagination of his traducers who do not see anything good in a school that has become a model in university management. When confronted with allegation on bonanza professorships, the VC lambasted those who flay the procedure, saying no process can be more transparent, competitive and merit-oriented than what obtains in UNILORIN.

     

    One university, two ASUU

    It is a long-drawn-out war of attrition, but none of the warring parties seems ready to eat the humble pie. Like two parallel lines that can hardly meet, UNILORIN leadership and the ASUU have been locked in a bloody faceoff for about two decades without any sign of respite in sight. The feud, which started during the tenure of Prof. Shuaib Oba Abdulraheem as VC, began then as a minor rift between ASUU and the university authorities over the need for the lecturers to shun the strike declared by the union of academic staff, has now snowballed into an intractable crisis that is fast consuming all the combatants. As at the time of turning in this report, nothing less than five court cases are pending before the National Industrial Court (NIC) as well as conventional courts, midwifing two opposing camps into existence.

    But to keen observers of happenings in the nation’s academia, the rift between ASUU and UNILORIN dated back to over 15 years. The seed of what has become a pig-headed disagreement was to be planted in 2001, when Prof. Abdulraheem’s administration sacked 49 lecturers in one fell swoop for defying the university management, which forbade them from participating in a strike called by the national body of ASUU. Prof. Oloyede, a student and long-term ally of some members of ‘UNILORIN 49,’ chaired the panel that recommended the firing of the recalcitrant lecturers.

    Before the UNILORIN chapter of ASUU became splintered into miserable factions, Dr. Oloruntoba-Oju, a die-in-the-wool iconoclast, led the union then. Generally soft-spoken but imbued with a mind like a steel trap, he is the last man standing, almost twenty years after. Prof. Amali, an even-tempered academic who succeeded Abdularaheem, enjoyed a relatively peaceful tenure; his coincided with the period the sacked intellectuals were jumping from one courtroom to another trying to wriggle out of the conundrum. By the time Prof. Oloyede succeeded Amali in 2007, hope of a quick resolution of the brewing crisis came alive, as stakeholders, including the national body of ASUU, expected him to right the wrongs of the past, being one of the dramatis personae.

    He declined to accede to their demands, culminating in the eventual suspension of the local chapter of the union. It was alleged then that Oloyede’s administration deliberately instigated the suspension of the local chapter of the union for a purpose, which signaled the beginning of more serious court battles between the feuding combatants. All political solutions proffered to resolve the logjam failed woefully. However, after intense legal fireworks that literally sapped all the parties almost beyond redemption, ASUU floored UNILORIN in court in 2009. After nine-year legal battles that had disrupted the national academic calendar to no end, the Supreme Court declared the sack of the famous “UNILORIN 49” as illegal and ordered their immediate reinstatement.

    Before then, the Court of Appeal had ruled against the striking dons on July 12, 2006. About a year earlier, a Federal High Court in Ilorin had also sided with the sacked lecturers, ordering their immediate reinstatement. The industrial row was sparked, when all lecturers who refused to sign an attendance register created by UNILORIN as a way of foiling the 2001 nationwide ASUU strike, were summarily relieved of their jobs. The union claimed that the lecturers’ sack was a gross violation of the 2001 agreement ASUU reached with the government, which stipulated among other things, that no member of the union would be victimised on account of the strike. At the time, UNILORIN insisted that the appointments of the affected staff were terminated for different reasons.

    But, as it finally turned out, the Supreme Court ruling was a pyrrhic victory. After almost ten harrowing years of staying out of job, some of the promising lecturers had died. Some who could not bear the pain sought greener pastures beyond the shores of UNILORIN. Careers were also stagnated or brutally ruined. There was an urgent need for reconciliation and healing of wounds, but both parties chose to embark on ego trips. However, despite the ruling by the highest court in the land, it is still being alleged that some are yet to receive their full entitlements. As fate would have, Oloyede, who recommended the sack of the lecturers, was also the man in the saddle by the time the court resolved the dispute. But the union did not trust him, accusing his administration of not complying fully with the judgment. The union declared war on his administration.

    That was how two factions of the same union emerged in UNILORIN: one faction, which is clearly in the majority, consists of more pliant minds; while the other comprises remnants of the confrontational wing which waged war with their employers. For obvious reasons, the former group, which is derisively tagged as “administration ASUU,” has enjoyed a chummy relationship with successive VCs, but it is deemed illegal because its parent body does not recognise it. It has also suffered heavy setbacks in the courts, which affirmed its illegality, though appeals are pending. With a clever use of carrot and stick, UNILORIN has helped the loyal ASUU to amass huge followership over the years, having had the likes of Professor Ayo Omotosho (2001-2003), Dr. Kola Joseph (2003-2006), Dr. Sa’ad Omoiya (2006-2009), Professor Wahab Egbewole (2009-2012), Dr. AbdulRasheed Adeoye (2013-2016) and Dr. Usman AbdulRaheem (2016-?) as chairmen.

    It is however a different kettle of fish for the radical faction, now led by Dr. Afolayan. Its members, like lepers banished from the community in order not to infect other households, are not only being treated as outcasts on campus; they are also roundly shunned by successive administrations. As the crisis continues to develop twists and turns, visits to the campus in the last four years have shown that students of UNILORIN are the happier for it. Stable and rancor-free academic sessions have furnished parents and their wards with the much-needed tranquility of mind to plan – a cherished rarity in a country where public universities are recurrently enmeshed in unpredictability and strikes.

    Arguments are also fiercely divided as to whether or not the institution is paying any price for having its house divided against itself, but there is a dearth of external supervisors, as required under academic stipulations, to moderate examinations and assessments in UNILORIN. Because of its refusal to recognise the local chapter of the union known to the national body, the university is sanctioned by the National Executive Council of ASUU, making it difficult for academics in many federal universities to serve as external examiners in the institution. But the faction loyal to the administration has often debunked this as the “greatest fallacy of the century,” maintaining that it is a mere “rumour” and a “lie put up to destroy” and discredit the university.

    As The Nation found out, one man that is yet to be forgiven for his roles in the crisis is the immediate past VC. As far as ASUU is concerned, Prof. Oloyede remains blacklisted, being an “anti-union administrator with draconian propensities.” That was why his appointment as JAMB Registrar was greeted with wild protests last August. Among other things, ASUU was miffed that Oloyede, whom it considered as the most unsuitable man to head such a sensitive national body, was given such a plum job. When the appointment was made public, Prof. Biodun Ogunyemi, ASUU National President, urged the government to reverse the decision immediately and investigate “Oloyede’s tyrannical and nepotism tendencies” during his reign at UNILORIN. The union also vowed never to interact with a man who “took nepotism to unprecedented heights as vice chancellor of UNILORIN” or allow him into any public universities where it has members.

    “Given our inside knowledge of his anti-democratic and anti-union antecedents, Professor Oloyede is the last person that we expected to be so honoured with a national appointment of that status in the education sector. His anti-workers stance stood out in the case of the sacked UNILORIN 49. He led the administration’s team to as far as Lagos to testify falsely against the workers before the Industrial Arbitration Panel,” Professor Ogunyemi added.

    Expectedly, the local ASUU body loyal to the national union threw its weight behind its parent body’s decision over Oloyede’s appointment. Its Chairman, Dr Afolayan, said ASUU UNILORIN aligned itself wholly with the call that Oloyede’s appointment was a huge mistake by President Muhammadu Buhari’s administration.

    He said: “The branch is in agreement with the union’s publicised opposition to Oloyede’s appointment as JAMB Registrar and for the reasons stated. This is not the first time that allegations of fraud, nepotism and having anti-workers tendencies have been raised against Professor Oloyede from within the University of Ilorin itself. The allegations were raised even while he was VC, but they were always suppressed by the powers that be within the university.”

    Not surprisingly, the “administration ASUU” hailed Oloyede’s appointment, saying he is the most worthy person to lead JAMB. It also descended on its parent body, calling it names. It said: “What ASUU National Executive Committee (NEC) is lamenting is its serial failure to foist unpopular leadership on the branch. Majority of our members had insisted and still insist that ASUU NEC will continue to fail woefully and sulk until it embraces the elementary democratic principles in the election of leadership. It is yet another evidence of the meddlesomeness of a union (leadership) that has lost track of the laid down objectives of its cherished founding fathers. Otherwise, what kind of reasoning will produce such an outburst over a well and widely acknowledged appointment?”

    UNILORIN also defended Oloyede’s appointment, accusing the national ASUU of “bad belle” and purveyors of lies.

    Kunle Akogun, Deputy Director, Corporate Affairs, said the university management was shocked that ASUU could be raising such allegations against the former VC.

    “It is baffling that despite the national applause elicited by the recent appointment of Professor Ishaq Oloyede as JAMB Registrar, any group can still come out to oppose such highly commendable decision of President Muhammadu Buhari. Of all the appointments made so far by the Buhari administration, that of Professor Oloyede has been singled out as a veritable round peg in a round hole. It is in this regard that the management of the University of Ilorin views the allegations leveled by ASUU against the person of our former VC as not only spurious but also irritating, as it smacks of ‘bad belle.‘“

    One thing is, however, clear: it will be far easier for the proverbial camel to pass through the eye of the needle than for the opposing parties to reach a truce. For example, Dr. Afolyan’s group firmly holds on to the belief that since the NIC had declared as “illegal the group of persons declaring themselves as ASUU,” there should be no need for controversies. It insisted that UNILORIN should just tread the path of legality and withdraw its support for the rival faction, since the “crisis persists because the management prefers a lame duck union comprising mostly stooges of the sitting Vice Chancellor to foist a feudal system on the university”.

    But its rival faction enjoying the ears of the university management considers the other group as ingrates. It has also staunchly opposed the request for “payment of accumulated salaries” and the thorny issue of backdated promotions for the years members of dissident group were in the trenches. It also sees nothing wrong in the monthly check-off dues of all ASUU members deducted at source, but which are allegedly not remitted to the coffers of the national secretariat of the union. Flaunting its numerical advantage, it also boasts that members of the other faction are not on the ground in the university, adding that unionism connotes a group and not one-person affair.

    Now with the choreographed birth of two chapters of ASUU firmly in place, analysts say it seems UNILORIN has murdered sleep, as the two factions and successive university administrations have continually been at daggers drawn – to the continued detriment of the university’s image. With feuding combatants perpetually trading accusations and counter-accusations, it is as palpable as cotton that all the actors have revved the engine on the road to mutual assured destruction. Who will resolve this seemingly intractable rift between “family members of the same destiny and profession,” as Akogun, the university’s ever-ready spokesman, often sarcastically dubs it?

    Concluded

  • Koko: Another ‘toxic’ waste, many controversies

    Koko: Another ‘toxic’ waste, many controversies

    The dumping of waste, alleged to be toxic has pitted an indigenous company, Ebenco Global Services, against a section of Koko community in Delta State.  S’South Regional Editor, Shola O’Neil, who recently visited the town reports on the controversy and why it has pitted the community against itself.

    KOKO, the historic Itsekiri town and headquarters of Warri North local government area, Delta State, has again grabbed national headline  for yet another uncomplimentary reason. Like almost 30 years ago, the story that is taking the town to global media sphere is the alleged deposition of huge quantity of waste materials alleged to be poisonous and carcinogenic.

    The once bustling port town on the fringe of the Benin River, Koko contributed to the fame and prosperity of the then Midwest Region (later defunct Bendel State), rivalling neighbours such as Sapele and Warri as a centre of commerce.

    Koko has a proud and long history of resistance; it is the land of the famous Chief Nnana Olomu, one of the foremost nationalists of the region, who defied the British, withstood them, paid the price but kept his pride.

    Its indigenes pride the sleepy town as the centre of the civilization and commercial activities of the 19th century. Pa JOS Ayomike, famous historian and scion of chief descendant of Nana, writes about its history with gusto, plumb and irrepressible fervour.

    But no fanciful prose can hide the fate that has befallen this historic town. From the height of being one of the towns touted to lead the industrial revolution of Delta State, to one receding to its infamous past and unwanted fame, the latest piece of bad news has hit the town hard. And the spectre of the sad incident and tragic memories of 1988 now defy the beautiful sky, fresh riverside peace, casting a dark pall over the town.

    The lost golden era

    Abandoned warehouses, mostly turned into churches, are the relics of what was once  a nostalgic reminder of the golden era that has been obliterated by the mistake of an innocent man who fell prey to a cunning Italian fraudster and merchant of death. Three decades ago thousands of poisonous chemicals were abandoned in the town by unscrupulous European businessmen. The incident challenged the legacies of the renowned tribal chief and first Niger Deltan nationalist (Nana) to be the memory conjured when Koko is mentioned.

    When our reporter visited the town last Wednesday, the languid air around the sleepy town was undisturbed. Residents moved about their normal businesses; industrial warehouses turned churches were opened; pastors and clergymen were doing their things  either preaching prosperity and miracle to members or invoking fire to consume their “enemies and demons”.

    Businesses on the street corners went on undisturbed. Traders sit behind their wares; the numerous boli (roasted plantain) sellers attended to customers, who ate the local delicacy soaked in bright palm oil and roasted ice-fish.  For N200, our reporter ate his fill, a ‘plate’, consisting of two giant sized plantain fingers and scubia fish soaked in the tasty sauce made from onion and pepper, while listening to local gist.

    Uduak (not her real name), the boli seller, told our reporter that her search for the greener pastures took her from Akwa-Ibom to Koko. Even if her sojourn hadn’t yielded much financial gain, she seemed contented and very happy in her surroundings. She bantered with her customers, one of whom asked her when (President) Buhari was coming for his regular launch of Boli.

    “Ha! oga if Buhari never chop this boli he nor de start work o,” one garrulous worker of a construction company in the town said in response to the puzzled look on our reporter’s face.

    The banters and laughter made the tasty meal even more enjoyable and everybody seemed happy with their lives.

    But underneath the façade of calm was the fear of the unknown. Several weeks ago, rumour started swirling that huge consignment of toxic industrial wastes had been deposited – and still arriving in the town.  The rumour got those old enough to remember the infamous incident of 1988 panicky; but the younger ones some of whom work for the ‘culprit’ company went about their daily activities.

    A cloud of smoke

    It was gathered that several weeks before our report, the report of the incident was presented to the Olu of Warri, Ogiame Ikenwoli, who ordered an investigation. The Itsekiri Leaders of Thought, under the leadership of Edward Ekpoko Esq., was also briefed on it.

    Yet, the Secretary of Koko Community, Mr Eric Mcgrey, who was contacted on the scare, said he was not even aware of it. He turned down our reporter’s request for a meeting, stressing, “I don’t know what you are talking about” before abruptly hanging up the phone on February 22.

    A few meters from the boli shop, on Atuwatse II road, an enclosed compound housing an insipid looking company, with a sign announcing ‘Ebenco Global Link Ltd’ seamlessly blended with its environment on the waterfront. But beyond dozens of trucks that ingress and exit the premises, not much is known about the activities going on therein.

    Workers at the company’s sites directed all enquiries to their oga. Not even the company’s website or Facebook page provided any insight other than the proclamation that it “is a leading company in the provision of waste management and environmental services in Nigeria.”

    Inside, cauldron puffed out billows of smoke that mix with the riverside air and escape into the atmosphere. Dozens of tanker trucks filed in and out of the premises. They come in empty but leave filled with loads of material suspected to be sludge and other wastes from oil facilities in the area. Heavy-duty equipment could be seen loading sharp sand from a barge berthed on the jetty into tipper trucks.

    Several signboards in the town touted Ebenco Global Link Ltd, Koko as a company that manages waste: “Waste Management is our Concern’, it reads.

    But how Ebenco is managing waste is a source of concern to some leaders and inhabitants of the area in the past months, especially to the Itsekiri Environment and Human Rights Group, which warned that the company could be unleashing another deadly cocktail of poisonous chemicals into the environment and endangering the lives of inhabitants.

    Their concern is shared by Dr Maxwell Iwegbue of the Department of Chemistry, Delta State University Abraka, who frowned at improper disposal of the waste. “Even wastes from peoples’ houses are not safe, but waste from emanating from petroleum and hydrocarbon activities are established carcinogens.”

    Various sources said the company has what is similar to a modular refinery at its jetty. From where petroleum products are extracted from sludge and slurry brought in at night. The wastes are transported to another of the company’s facility where the only treatment it gets is burial under the earth.

    The use of incinerator to burn off the waste is majorly another source of concern to residents of the area, who complained about soot blackening the air they breathe, resulting in various ailments. But their grievances are reportedly muffled by thugs working or in the payroll of the company and the fear of prominent local politician who is said to have a stake in the company.

    “Every night, they begin to burn some things and smoke would cover everywhere and people would sometimes wake up choking and suffocating,” a teenage boy who was studying while minding his parent’s shop, told our reporter.

    Everybody in Koko knows the owner of the company, simply identified as Ebenezer or Oluwagbemiga (?), a reticent middle-aged man said to be an indigene of neighbouring Ondo State. One of the young men at the waterside where his jetty is located told our reporter that the man is an ‘Odon’ (very influential, highly connected businessman) and stupendously rich.

    “He is very wealthy and connected,” another said, adding that Ebenezer’s business interests are as diverse as his allies. “Top oil industry operators, naval officials, security operatives in the Niger Delta know and relate with him and he does all things.”

    Around Koko, everybody knows the man; some speak of his generosity and his influence in the local economy and politics of the area, while others do not agree with his modus operandi.

    An Itsekiri activist and indigene of the community, Mr David Odeli, revealed that the company has staff strength of over 100 workers, most of who are locals.

    “There is no doubt that his company is contributing to the economy of Koko and its environs that is why we are advising people to be very cautious about anything that can create problem and scare away investors who can help mop up the teeming youths from the streets,” Odeli added.

    Our independent finding revealed some of the workers are deployed to an unmarked property located along the Koko-Ugbenu road. The site sits on a massive land, which is fenced off for security or from prying eyes. A cursory look at the yard revealed an innocuous looking scrap yard, dilapidated and mangled pieces of cargo containers, unserviceable trucks and septic tanks.

    The facility is located near a new government school around the Uduaghan Layout, in Koko. The only indications of any activity in the premises are rings of smoke of heavy equipment dancing into the burning air. This can be seen from the expressway and other parts of the growing exurb parts of Koko.

    Either by design or fluke, the façade of scrap metals screened equipment and other activities going on in the deep of the massive compound; bulldozers are opening up the earth. The chasms they create are filled with tons of sludge and slurry, which are then mixed with sand and covered up.

    The Itsekiri Environmental and Human Rights Group claimed that the sludge are toxic, carcinogenic and harmful to the health of people living around the area, especially pupils of a nearby primary school at Egbelemeji Junction, which borehole water could be contaminated.

    Chairman of Warri North LGA, Francis Maku, rose to the company’s defence and debunked this. The council boss slammed those behind it, insisting that there is no toxic waste in Koko’, much to the exasperation of activists and those calling for independent inquiries into the nature of the waste and how Ebenco is handling them.

    “The Chairman’s outburst, without getting a proper test on the materials, is strange and condemnable because he should be on the side of the citizens. But the interest here seems to be with the (alleged) polluter,” one source said.

    Initial report, which claimed that the wastes are shipped from the Chevron Nigeria Limited’s tank farm in Escravos turned out to be untrue. Esimaje Brikinn, General Manager, Policy, Government and Public Affairs, said, “CNL is aware of reports of alleged toxic waste said to have been dumped in Koko area of Delta State by a company; the company is not a contractor to CNL and does not provide waste management services to CNL.”

    The company insisted that it has a world-class system for managing its operation and waste.

     

    Our investigation revealed that the materials might be sourced from different locations, including an NNPC subsidiary in the area. The materials are transported by barges along the Benin River to Koko, where they are received at Ebenco’s jetty and trucked to the ‘scrap yard’ on the highway, after a crude refining process is used to remove petroleum products.

    The black tar journey

    The truck’s journey from Ebenco jetty leaves a trail of black, tar-like droppings on their trails to the final destination.

    Efforts of our reporter to get into the company were fruitless; the company’s workers seemed to have a mandate to deny visitors, especially journalists from entering.

    When our reporter accessed the facility through another property in the area, a bulldozer was seen covering up a large pit with slurry and sludge before topping up the opening with sand.

    Ebenezer, in a telephone chat with our reporter that lasted nearly six minutes on February 14, claimed that he was a victim of blackmail. He said, “This is mere sludge and it is not waste, but wealth to us because we are recycling them. How can we bury what we deem as wealth?” he queried.

    His claim of recycling the material was disputed by environmentalist and a federal lawmaker from the area, who asserted that the company lacked the capacity or equipment to recycle waste of such nature.

    “At best, what they do is to burn off some of those hydrocarbon wastes after extracting whatever they can. The company cannot recycle from that facility there in Koko,” an activist said.

    Ebenezer described those opposed to his company as disgruntled, stressing that he has the support of larger numbers of the community leaders. Later, in a paid advert in a national newspaper, he alleged that those antagonizing his company were using toxic waste as subterfuge to seek contract from the Nigeria Ecological fund.

    He accused his accusers of “witch-hunt and blackmail,” but refused to take subsequent calls to his telephone lines to expand on his cry of “campaign of calumny” and “deliberate attempt to ridicule our esteemed company”.

    Those opposed to the company include the IEHRG who took their protest to the Ministry of Environment and demanded a probe of the company’s operation.

    Mr Tony Ede, a retired staff of Central Bank of Nigeria and a former journalist with the Nigeria Television Authority (NTA), is head of the group. He covered the infamous incident of 1988 and warned that the latest saga might be equally devastating to the environment and people of Koko. The position confirmed an exclusive report by The Nation newspaper on February 16, with the headline, ’30 years later, another toxic scare hits Koko’.

    Mr Brown Dibofun, a member of the group, told our reporter that in spite of denials by the company and its agents, “scientific analysis conducted on soil, storm water and slurry as well as the environmental report prepared there from by Vertical Options Global Services Limited, showed that the slurry samples from the Ebenco Global Link dumpsite are toxic and carcinogenic, not environmentally friendly and are hazardous.”

    Some of these materials allegedly found include polycyclic aromatic hydrocarbon (PAH), mercury, iron, chromium and other elements, which were said to be at a level that is unsafe for human. These materials are similar to the content of the toxic waste deposited in the town nearly 30 years ago.

    A toxicologist, who asked not to be quoted in this report because he works for a government agency and is not allowed to speak with the press, stated that if true, residents of Koko are in danger of cardiovascular diseases, cancer and deformation of foetuses.

    “It is very dangerous and a simple look at research result and studies or merely searching Wikipedia, will confirm that poly-aromatic carbon can lead to skin, organs and stomach cancers. To answer your question, ‘yes these are carcinogenic chemicals that should not be allowed to be disposed off indiscriminately,” the chemical expert added.

    The lawmaker representing Warri Federal Constituency in the House of Assembly, Mr Daniel Reyenieju, called for proper analysis of samples from the site. Reyenieju’s motion for the investigation of the incident was being debating at the House when this report was being written.

    He told The Nation on Sunday: “I don’t want to be sentimental about it. The sludge is not well treated and my position is that it must be well treated. It must not be allowed to start poisoning people, the incident of 1988 must not be allowed to reoccur.”

    Speaking in the same vein, the Secretary of the Itsekiri Leaders of Thought, Mr Amorighoye Mene, called for the investigation and prosecution of the management of the company, if they are found guilty. “This is not an allegation that cannot be swept under the carpet.”

    “It must be investigated and if found guilty should be punished to serve as deterrent to anybody who puts profit above health of human beings. To allow such things to continue will be to encourage illegality.

    “We are mindful of health implications and encouraging other people to engage in such practices. Whatever claim he is making on ecological fund, is of no consequence. We don’t care about the politics, what we care about is the well being of the people in that community,” Mene added.

    Response to stakeholders’ concerns and newsmen inquiries from Ebenco has so far been limited to the scanty advert of Friday, February 24, which attacked The Nation’s report and made its own allegations and castigations.

    In a veiled swipe at the IEHRG, the statement described its outcry as “deliberate ploy and plot for the writers to use Ebenco Global Services as a bait to apply for cleanup and/remediation job from the Ecological Funds, Federal Ministry of Environment.”

    In a swift response, Mr Brown Dibofun, an environmental consultant, said Ebenco advertorial smirks of ignorance and lack of knowledge of the working of the ministry and agencies.

    “First, the Ecological Fund does not award contract for private pollution; the law is that the pollutant (Ebenco in this circumstance) is responsible for cleanup and remediation of polluted site. Therefore, the idea of looking for contract does not rise and merely shows how uneducated they are,” Dibofun added.

    He lambasted the company for trying to intimidate those who are genuinely concerned about the impact of those who care about the environment that it is allegedly destroying.

    Developing cold feet

    Speaking in the same vein, a source in the community who spoke on condition of anonymity said Ebenezer’s boasted support in the community was not as altruistic as it seemed. “Some people are doing it for their selfish interests; others have people who benefit from the company and so are unwilling to speak up against what could be harmful to the environment.”

    There were also concerns that those worried about the waste, are afraid to speak out because of backlash from beneficiaries. An elderly resident suddenly backed out of a planned interview with our reporter after he was cautioned. He had earlier said he would open up on how fume and black soot from Ebenco was suffocating residents at night and making life unbearable for them.

    Nevertheless, the Federal Ministry of Environment and its counterpart in the state have ordered investigations into the incident. Commissioner of Environment, Mr Victor Nani, who led a team to the site, said the visit was to collect “samples of the waste for further laboratory analysis”, adding that the result would be made available to the public.

    It was also gathered that NOSDRA and NESREA had also taken samples for laboratory analysis, but the results might take weeks before they would be released.

    Despite the flurry of activities, the company has continued with its activities. Specifically, before Nani’s visit this week, there had been complaints that the slurry and sludge waste were still being earthed. Photographs taken by our reporter and others by individuals shortly before the verification confirmed this, raising fears that the company was trying to obliterate and cover its ‘toxic’ track.

    IEHRG claimed that over 100 tipper loads of sharp and laterite sands were deployed to the facilities between when the story of the waste dumping was first reported and when environmental agencies official started arriving in the town to obtain samples from site.

    Nevertheless, Dr Iwegbue warned that the use of sandfill by the company to bury the waste is very unsafe and cannot guarantee that the toxic materials won’t pollute sources of water. “Wastes emanating from petroleum, hydrocarbon activities are established carcinogens.”

    “The oil companies usually generate their own power and it is possible that they have transformers and compressors, which wastes are very dangerous. So when they are burying them in places that are waterlogged the implication is that it will contaminate surface and underground waters and pose severe danger for inhabitants”

    He said the use of land fill is only effective when properly done, stressing that the linings of surrounding walls must be between seven and 10 feet in thickness so that the wastes cannot seep out, adding, “even at that, there should be constant monitoring.”

    Meanwhile, Mr Ede has expressed concern about alleged “huge spending by and desperate cover up attempts by the company”. He urged federal and state governments to take up “responsibility to the people of Koko.”

    “The irony of the matter is that some Koko community leaders and residents are aiding and abetting and supporting Ebenco in the cover up of the criminal dumping because they are on the payroll of the company and its backer.”

    He lamented that the company’s facility had not been sealed up by the relevant government agencies and expressed concern that the alleged cover-up plot could extend to officials of these agencies.

    “The company has tipped tons and tons of sand and laterite on the dumpsite and used bulldozers to grind the waste to the ground. The intention is to create an impression that no toxic waste dump because the pit has been covered with sand,” Dibofun added.

    Amidst the dogfight over the waste, the silence of some elected officials at the various level, except Reyenieju, who has been speaking out, is a source of anguish for some residents.

    “We have a local government chairman, who has taken his stand with the company, we also have a member in the House of Assembly and councillors and others, why is nobody speaking out?” Abiodun, a Lagos-based Koko indigene lamented.

  • Hospitals of death, tears and sorrow (1)

    Hospitals of death, tears and sorrow (1)

    With crippling challenges of dilapidated infrastructure, obsolete medical facilities, dearth of professionals, teaching and paucity of funds to contend with, teaching hospitals have been reduced to centres of regrets and heartbreaks. Fresh from a two-month tour of these ailing facilities, Assistant Editor ADEKUNLE YUSUF reports that the regular harvests of woes in the public hospitals may not abate until the right structures are in place

    As far as miracles go, his is a classic example of life after death – or so it would seem. A businessman with unrivaled panache, Chukwudi Michael, 62, was traveling on a luxury bus to Enugu State, with a heart filled with grandiose business ideas. But contrary to all expectations, the journey turned into a nightmare for him and other passengers after the bus crashed into an oncoming vehicle and fell into a ditch near his destination. Seven passengers, including three children, were instantly killed. That was four years ago.

    An accident victim unluckily caught in the crossfire of over-speeding, Michael survived by the skin of his teeth, but not without sustaining multiple devastating injuries that left him unconscious, almost clinically dead, for days. As he and other survivors lay on the roadside writhing in pains, help became a luxury at a time it was most needed, since no vehicle was willing to transport them to a hospital. And when a truck finally volunteered to help after about an hour, the businessman was made to share a space with dead bodies.

    Despite being in a coma for two weeks, Michael woke up to the sounds of hope – thanks to the gifted hands that nurtured him back to life at the University of Nigeria Teaching Hospital (UNTH), Enugu State. This kick-started his slow but steady return to recovery in the intensive care unit, which served as his abode for almost two months. Three weeks ago, he was a grateful heart in Enugu, thanking God for saving him from the clutches of death, which would have cut him down in his prime. The grandfather, who was also effusive in his praises for UNTH, was all smiles as sounds of revelry issued into the night.

    But as Michael and his family luxuriated in ecstasy, Funmilayo, wife of Femi Adebayo, a business mogul, was not that lucky. She was hale and hearty until she drove herself to the University Teaching Hospital (UCH), Ibadan, capital of Oyo State. Her mission: she wanted to know her cancer status. On that fateful morning on January 25, 2016, she was accompanied to the hospital by her house help, Odunayo. A meticulous woman who would not leave anything to chances, Funmilayo, 58, chose to undergo tests following the death of Toluwalade Akinola, her sibling who died of cancer last year. But in the process, she did not only lose her right to know her medical status, the process led to her untimely demise, leaving her well-to-do husband and family grieving.

    Not ready to accept explanations for her passing away, a heart-broken Adebayo cried foul, alleging that a medical murder had taken place.

    “My wife was killed by the carelessness, negligence and incompetence of the doctors,” he insisted.

    Ready to draw a battle line with the management of the teaching hospital, the millionaire businessman called for an urgent  autopsy, enlisting the services of two prominent Senior Advocates of Nigeria (SAN) to force the hands of a reluctant management to accede to his request.

    “I was somewhere holding a meeting in Ibadan and my maid, Odunayo, who came with her to the hospital, informed me on phone that her madam was not feeling fine in the hospital. I was disturbed because of the simple fact that what could have happened to somebody who drove herself to the hospital to meet up her 9a.m. appointment?”

    But by the time Adebayo reached UCH, he got the surprise of his life.

    “I overheard her telling them (doctors) that she was no longer interested in the test and that they should normalise her system and allow her to go home. She was seriously in pain and told them to allow her to go.” The business mogul said the doctor told him that he put gas into her when it was discovered that she had intense pain. Because the pain refused to subside, Funmilayo was taken to the x-ray to see what was amiss. And realising that the lungs and intestine were not okay, she was asked to undergo surgery immediately.

    “We went for  x-ray to see what went wrong. After that, they said they had to take her for surgery because the lungs or intestine was not okay and I said the lungs or the intestine that were okay before the test began, how come you were saying she had perforated intestine? At that level, I suspected that maybe the gas was too much and the intestine has been damaged in the process,” he narrated how his wife’s ordeal unfolded.

    However, as he was contemplating what to do next, another doctor approached him, asking him to pay N110, 000  immediately or forfeit further intervention for his better half.

    Despite Adebayo’s readiness to pay any amount, the woman died, even without reaching the precincts of the surgery room, leaving a livid husband to fume and fume to no avail.

    Much like Adebayo and his household in Ibadan, Ausbeth Udebu has been reduced to a psychological wreck, having been endlessly tormented by the agony of sudden bereavement. He is yet to come to terms with the discrepancies between the laboratory diagnosis for which Ngozi, a secondary school teacher and wife of 15 years, was admitted and the cause of her death at the Lagos University Teaching Hospital (LUTH), Idi Araba, Lagos. She died during the Easter break this year, plunging the family into chaos. Precisely, on March 25, Ngozi was referred from a Catholic hospital in Mushin to LUTH. She was diagnosed of ulcer, while the autopsy conducted after the death showed that she died of asphyxia, a medical condition arising from loss of consciousness due to the body’s inability to deliver oxygen to its tissues.

    Udebu, an estate developer, insisted that professional misconduct by the doctors and nurses led to the death of his wife and mother of four children on Easter Monday. Narrating the sequence of events that led to his wife’s demise, he recounted that it all started on that Good Friday after the family observed mass at St. Dominic’s Catholic Church, which ended about 6pm.

    “I was with my friends when my phone rang. I was asked to come back home because my wife was in pain,” he said.

    Udebu, who said he initially assumed it was one of the usual gimmicks to bring him home, ignored the call to head home. However, when his daughter persisted, arguing that the pain was not the usual discomfort the deceased used to experience during her menstrual cycle, a dutiful husband abandoned his friends and hurried home.

    “I took her to Regina Mundi Catholic Hospital at Mushin. We were referred to LUTH. At the LUTH Accident and Emergency, we were received when they saw the referral letter. After a while, they traced the veins and took two bottles of blood and told me to go and do test at Pathcare, which I did and the result was ready by 6am.”

    On returning to the ward, the doctors had written another scan investigation, which Udebu  did within an hour.

    “Unfortunately, all through this time, my wife was still writhing in severe pain. She was in extreme pains that I have never seen before. After collecting the results, I went straight to the pool of doctors so that they can analyse and maybe take actions. But I got the shock of my life as they asked me to wait until they were ready for ward round. I went back to my wife’s bed, which was the first on the line in the section and, unfortunately, she was the last to be seen.”

    The estate developer, who accused LUTH doctors and nurses of negligence, lamented that he had to wait for over 90 minutes before “they could see us on a case that was supposed to be treated as an emergency.”

    His words: “We waited patiently until they came.  They looked at the result and said all the vital parameters were in place and in order.  They asked me if she had ulcer before and I said no.  They even asked me about the kind of food she liked and ate. They were asking me some questions ordinarily I would not have answered but just because I wanted them to attend to my wife I managed to bring up myself to answer them all.  At the end they concluded that it was ulcer that was disturbing her.

    “That gave me so much hope that they would recommend something for me and my hope was high. They wrote all the drugs for me. Of all the things they wrote, the things they had in their pharmacy was the box of gloves, disinfectant and spirit and cotton wool. The drugs Gascol and other injections were not available, which I bought outside. There was no improvement and they wrote another drug and specified a particular brand that I managed to get after a lot of trouble.  This was now on Sunday. We were now moved to the ward because we were told we had stayed up to 48 hours when the rule was 24 hours.”

    But at LUTH, there is a caveat that no patient relations can stay with his or her patient in the ward. Despite all entreaties to allow somebody to stay overnight with his wife, the nurses held their ground. “It was like a drama when I questioned how two nurses would take care of 35 patients in a ward. She said by their training they know how to give priority. I wasn’t convinced but I had to give in. They made me to go and buy oxygen mask at about 9:30 pm; they tested it and assured me it was working.”

    However, by the time he returned to the hospital the next morning, it was a rude shock that perched on his nose like a recalcitrant bird following a buffalo.

    “I looked at where I left my wife the previous night. They had already drawn the curtain. I knew what that meant because I lost my uncle in LUTH. They were trying to prevent me from seeing her, but I resisted and I saw the lifeless body of my wife, the love of my life for 15 years and mother of my four children laid dead. They never called me; I included my numbers on every form I filled but they never called me,” he protested. Promptly, he demanded an explanation about the death of Ngozi. The hospital asked him to pay for the autopsy, which he did. But when the result was out, it had that his wife died of asphyxia, which is miles away from the scan and laboratory results preceding the treatment.

    Udebu, who recalled that there was no light in the accident and emergency ward, said it was a big challenge to find another vein when the first part of the intravenous fluid got blocked.

    “I had to use the use the torch of my phone in order to help the doctor trace the vein. There was no ventilation. Even the window in the room could not be opened. My wife was restless and uncomfortable. I tried to force it open but I couldn’t,” he lamented.

    He continued: “During my wife’s stay, the toilet was unusable. The floor was water-logged and I had to personally wade into the toilet to carry the bed pan she used for toilet. No patient could go into the toilet to use it. It is a terrible thing,” he said.

    But if the treatments meted out to Adebayo and Udebu were utterly reprehensible, how does one describe the cause of commotion and confusion galore at the Olabisi Onabanjo University Teaching Hospital (OOUTH), Sagamu, Ogun State, last October? To her family’s chagrin, Ajarat Muftau, 40, suddenly went missing three weeks after she was admitted at the hospital owned by the state government. The mother of four, who was undergoing heart-related issue in the teaching hospital, was declared missing by her husband, Muftau Muritala.

    But that was his only headache. He also accused the hospital management of not showing concern about her whereabouts, forcing the Sagamu police division to wade in. This led to the arrest of some hospital personnel, including the chief security officer and nurses on duty. Her family heaped her disappearance from the hospital’s female ward on the negligence of the nurses. They also lamented that police investigation into her disappearance was slow, adding that no progress had been made in finding the woman since she went missing.

    It was learned that Ajarat was receiving treatment for a heart-related disease at the hospital after going into a coma on October 13. She was admitted to the emergency and accident ward of the hospital, before being later taken to the female ward, where she went missing after regaining consciousness. “She was supposed to go for treatment at the hospital on October 19. But on October 11, her condition got worse. We rushed her to the hospital and I was told to pay N10,000 admission fee, which I did. She was placed on oxygen all through that day. In the evening, I went to pay for a scan she was to have the following day. At about 10am the next day, some nurses wheeled her into the x-ray centre for a scan.

    “She was taken to the female ward after the scan. A doctor came to attend to her and she was served a meal. After she finished eating, she said she wanted to rest. Her elder sister, my second wife and my mother, were with her in the ward. They were later told to go outside. I went into the ward around 12pm to check her but she was not on her sick bed. There were about six nurses in that ward. They told me to check her in the toilet. My relatives outside joined me and we searched everywhere but we couldn’t find her. We rushed to the gate to inform the security men and they said they didn’t see any patient. Meanwhile, the nurses didn’t help us to search for her until they handed over to their colleagues on afternoon duty,’’ he said.

    An enraged Muftau’s brother, Taofiq Muritala, a lawyer, said he had petitioned the Ogun state commissioner for police, Ahmed Iliyasu, to thoroughly investigate the case.

    Attempt by The Nation to speak with OOUTH’s Chief Medical Director, Prof. Alfred Jaiyesimi, was turned down. In a text message, he said he is not authorised to speak about the hospital and its activities, being a civil servant.

    Another heart-rending case took place on the morning of July 6 this year, as millions of Muslims around the world filed out in resplendent attires to celebrate the end of Ramadan, tragedy struck in the homes of Rasheed Akeyede. Instead of merriments and revelries that the day demanded, it was sobbing and wailings that rented the air, as neighbours and other sympathisers were forced into compulsory mourning mood over the demise of Fatimah, who died in questionable circumstances. It was the mourning of a woman who gave her all to support her husband, despite her unsuccessful efforts to secure a white-collar job.

    Her journey to the great beyond started on the 30th day of Ramadan, almost three hours to the sunset, when fasting Muslims would break their Ramadan fast. Having just worked on the beads jewelry for her friend ahead of the festivities, Fatimah decided to put her kerosene stove together to cook beans for her husband. But as she attempted to fetch onions in the kitchen cabinet, the holder of Higher National Diploma from the Lagos State Polytechnic saw drop of blood oozing out of her private parts, which was unexpectedly. Her pregnancy was just eight-month-old.

    But when blood kept coming profusely, she called the mobile phone of her husband, Rasheed, a graduate of Agricultural Extension from Ladoke Akintola University of Technology (LAUTEC), Ogbomosho, Oyo State. With the arrival of Rasheed, a petrol attendant at one of Total filling stations, the couple headed for Epe Primary Health Care Centre in Ita Opo on Ijebu Ode Road, from where they were referred to the Epe General Hospital.

    Hardly had they settled down than the doctor on duty called on the husband to source for blood, informing them that a caesarian section might need to be carried out on her. From that point, she began an unexpected journey to the grave on the eve of July 6. She died after a caesarean operation on her, but the baby girl survived.

    After the operation, she needed blood transfusion badly, but which “some hospital workers deliberately made impossible to get,” as Rasheed put it. An enraged husband attributed her loss to the negligence or dereliction of duty on the part of some health workers in the hospital.

    With tears running in rivulets down his cheeks, he carpeted the health workers that allegedly mismanaged his wife’s case. “All efforts to save Fatimah were truncated by the health workers whose attitude to saving life was questionable.

    “I met the laboratory attendant already sleeping. We had to knock the door for nearly 10 minutes before he opened the door. We told him that we needed two pints of blood for a pregnant woman in critical conditions, but he told us the blood is not available,” a heart-broken Rasheed said. He added that the laboratory attendant was gracious enough to provide contacts of different hospitals in the state that can supply the blood. But as fate would have it again, all the numbers were called but none was available. “When this was brought to the laboratory attendant’s attention, he called his boss, one Mr. Okunu, who later helped to call a private line belonging to another health officer in Ikorodu General Hospital. That was why we headed for Ikorodu for the blood. I couldn’t go to Ikorodu, but my brother followed them while I was asked to stay back to enable me buy other recommended drugs needed for the surgical operation and attend to other needs.”

    Then a new condition surfaced: N7,500 must be paid to enable him use the  ambulance that would convey the blood from Ikorodu General Hospital. With the condition met, he also coughed out N9,000 for the two pints of blood, each costing N4,500. “To my surprise, the lab attendant at Ikorodu General Hospital insisted that she would not give us the blood, saying that nobody told her anything about blood but Sallah rice. Before the woman could release a pint out of the two pints needed, my brother had to call me and I gave the phone to Epe General Hopsital lab attendant who then pleaded with her and she eventually released one pant.”

    But on returning to the hospital with a pint of blood, the doctor said the family should look for all possible means at this point to get blood. “Around 12:20am, three of my wife’s brothers arrived with their parents, saying they were ready to donate the needed blood, since they have the same blood group. The lab attendant insisted that they can’t take unscreened blood. I pleaded with the attendant to make use of the o’positive blood in the bank that the doctor is saying the woman is in a critical condition, but he stood his ground. The lab attendant argued that the deceased had 24% blood when she was brought in, saying that with a pint of blood already gotten from Ikorodu, she should be able to sustain till the morning,” Rasheed said.

    The lab attendant, again, called Okunu on another private line who told the family to go to Lagos Island Hospital for the blood. The young widower added that the hospital management insisted that he must pay another N7,500, just as the driver of the ambulance insisted on seeing the receipt of the payment before he could start the engine of the ambulance. He rushed to make the payment. At this stage, while waiting for those who went to source for blood, the doctor suggested that “we used the unscreened blood provided I was ready to sign an undertaking, lamenting that my wife was dying, but the lab attendant said he would not allow the use of unscreened blood.” Shortly after, Rasheed said he heard the doctor scolding the nurses for failing to give adequate attention to his wife as instructed.

    “On getting to ward 3 to call the doctor, I saw my wife’s lifeless body already packed, with wool in her nose and mouth while her feet were tied together. That was when the doctor announced to me of her passage at 3:30am. To me, it was the height of betrayal on the part of the doctor and the lab attendant, who I have begged for almost 8 hours to consider the use of the available blood when we couldn’t get what we needed on time,” he narrated amidst tears.

    Even infants and children generally, despite their pristine innocence and extreme vulnerability, hardly enjoy humane handling in public hospitals. The following cases, which involved children, are as blood-curdling as they are hair-raising. It was barely four hours after Fatimah lost the battle of life at Epe General Hospital, but the hospital saw nothing wrong in further jolting her grieving husband. It simply asked Rasheed to take the baby away, saying it was the deceased mother that was admitted, not the few hours’ old baby she left behind.

    “Just about few minutes after we buried my wife in accordance to the Islamic rites, pressures were mounted on me to come and carry the baby. I had just finished raising money to enable me pay the remaining hospital bill because the hospital management insisted that I pay the balance before they could release her body for burial. A nurse told me they have no business with the baby, saying that it was the mother they admitted and since the mother is dead, they couldn’t take the custody of the baby for any reason because there is no space in the hospital. I told them that we were ready to pay whatever it takes to take care of the baby at least for the night because we didn’t have the wherewithal to nurture the baby as she is too young for our care.

    “I told them there was no single woman to take care of her (the baby). My mother-in-law, who came to the hospital collapsed on hearing the news of my wife’s death. The woman was rushed to a hospital in Lagos where she was admitted due to the shock of her daughter’s death. All my pleas didn’t move them. It was disheartening to know that until someone helped me to call the Commissioner for Health, Dr. Jide Idris, before they decided to admit the baby. It was when he intervened that they began to give us VIP treatment and agreed to admit the baby.”

    Indeed, it was Idris’ prompt intervention that saved the baby, who was later discovered to be unable to breathe properly.

    “The following morning when I went to the hospital, I realised the baby was supported with oxygen. She couldn’t breathe independently. That was when it became clearer to me that the health workers were heartless. I wondered what could have happened if I had taken the baby home as they insisted. At this time, we reached out to the commissioner on her situation report. That was when the commissioner, again, threatened to deal with all the staff of the hospital if the baby died like her mother. So, the baby was transferred to Massey Children Hospital in Lagos Island, where she spent three weeks before she was discharged.”

    Now, almost  seven months after the unfortunate incident that led to her mother’s death, the baby she left behind does not seem to be as healthy as expected. Up till now, she hardly opens her eyes or cries, a condition which experts attributed to circumstances surrounding her birth. Baby Fatimoh has since been taken to the Federal Medical Centre in Owo, Ondo State.

    As Rasheed braces for a new lease of life, he said has started receiving threat messages. This started the very day he honoured the invitation of Dr Idris, where he denied authoring a letter purportedly written to commend the hospital where his wife died. “You are joking with ur life but you don’t know. Very soon we shall see if the police & soldiers can protect you 4 dis Epe,” the text message to his phone read.

    But if Rasheed’s experience is disgusting, John Okafor’s (also known in Nollywood as Mr. Ibu), who also had a dose of inhumane care prevalent in Nigeria’s public hospitals, can lead to criminal liability. This incident, which led to the death of his two-year old son at LUTH, took place in January 2011, shortly after his wife and son were released from the den of kidnappers in Enugu. Having secured their release with a ransom, he moved his family to Lagos. That was his undoing, as his son fell ill afterwards, and diagnosed as having inflammation of the liver.

    “The hospital suggested that he should be scanned. At the same time, I was informed that I could take my son out of the hospital to get the scan done elsewhere. But the same people later declined, saying that everything had to be done in the hospital because he was too weak to be taken outside. After a while, I was told that there was no electricity in the hospital. When I asked if there was no standby generator, they said there was no fuel in it. I offered to pay for fuel only to be told that the man that operated the generator was not around. When I left the place and got back later, the man still had not returned.”

    Later, Okafor said he found out that his son needed blood transfusion, which along with other things, was not attended to till the boy eventually died.

    But, like many voiceless Nigerians who are made to nurse a permanent wound after a distressing experience in the hospitals, Okafor seems not to have forgotten the heartbreak even with the passage of time.

  • Pastures of blood

    Pastures of blood

    • Oyo, Ogun farmers lament deadly encounters with herdsmen

     Pains of wasted efforts, damp squib of raped women and chilling cries of men cut down in their primes are events that have left farmers in some Ogun and Oyo communities sad and forlorn. HANNAH OJO, who visited some of the affected communities ravaged by herdsmen invasion, reports.

    MARIAM POPOOLA, a 65-year-old farmer in Ibeku, one of the villages in Iselu community, Yewa North Local Government Area of Ogun State, wept as she recalled the misery attacks Fulani herdsmen had foisted on inhabitants of the community. Some 500 herdsmen were using the Eggua border in the council area for grazing between December and April each year. Although they had been passing through the area for about two decades, friction between them and farmers in the community has been getting increasingly worse in the last 10 years.

    According to her, it has become the habit of the herdsmen to rape women found to be alone on their farms while their cattle foul their sources of drinking water. “The herdsmen open up our barns while their cattle eat up the maize and cassava we keep in the barns. Even the planted ones are uprooted and trampled on in the process of grazing.  If we ask questions, they draw their guns and shoot at us,” she said.

    65 year old Mariam Popoola and other distressed members of the community
    65 year old Mariam Popoola and other distressed members of the community

    Such has been the plight of settled farmers in some South West communities, with the resultant tensions between them and Fulani pastoralists. The farmers accuse the herdsmen of damaging their crops because they fail to rein in their animals when they invade the farms. In worse case scenarios, they allege, the herdsmen are often involved in violent acts like rape, robbery and murder of residents of the host communities.

    The herdsmen on their part say that they have no choice but to find pastures for their animals, arguing that they are the victims of unfounded prejudice. Local farmers say some villages  including Asa, Agon-Ojodun, Ayetoro, Ogunpa, Kodera and Igbonla, are virtually deserted by their inhabitants.

    Timothy Olasope, another Ibeku farmer, said his crops had been repeatedly destroyed in the last two years. He said the presence of Fulani herdsmen had left many of the remaining villagers so frightened that they keep themselves indoors in the evenings for fear of attack.

     

    One attack too many

    Violent acts of the herdsmen against the hapless inhabitants recorded by the various community leaders include the death of Yomi Alade, a teacher in the Area Community High School. He was killed in a fight with herdsmen on December 24, 2011. No arrest was made over the incident, much less a conviction.

    Earlier, a female farmer, Ruth Oga, had died in a stand-off with herdsmen on her farmland at Asa village. A fellow villager was raped and killed as she tried to defend her farm from herdsmen. The bereaved father, who spoke with The Nation, expressed disappointment that no culprit had been brought to book since last year when the attack occurred.

    A community leader Chief Samuel Edun, the Ashamu Apesin of Iselu, said he no longer believed the herdsmen were interested only in grazing their animals.

    He said: “They don’t event eat grass anymore. They are after our farm crops. If they meet a couple in the farm, they will chain the husband and rape the wife in his presence. We tried to contain them but we are at our wits’ end.  When God is ready, he will come and help us,” he said.

     

    Oyo: A narrative of devastation and despair 

    Rural Dwellers in Ayete, Ibarapa North LGA, Oyo stateAyete, a sleepy town in Ibarapa North Local Government Area, Oyo State, bears a resemblance with that of Iselu people in Ogun State. As the generalissimo of Asawo, Ayete town, Chief Raheem Lawal Gbadegesin is, by tradition, the one that leads his town to war. But there appears to be a twist of role. He was caught in a clash with herdsmen on a cassava farm recently.

    A prominent farmer in Oyo State said the herdsmen had caused a lot of havocs in the 10 local government areas in Oke-Ogun. Chief Amos Ajibesin, the chairman of All Farmers Associations, Oyo State, recounted a murder incident earlier in the year, which nearly resulted in a riot.

    He said: “On February 18, this year, the pastoralists met a woman on the farm and beheaded her.  I had to run there with the Commissioner of Police to avert crisis as the villagers were already set for a riot.”

    There are about seven million Fulani people in Nigeria. While settled Fulani live permanently in towns and villages, many have kept itinerant lifestyle, moving with their livestocks from one part of the country to another. With the nation’s land resources depleted by development and desertification, there are often conflicts between these sedentary and pastoral communities.

    Chief Rafiu Magbeje, a community leader in Afua, a village in Ayete town in Ibarapa North Local Government Area, Oyo State, accused the pastoralists of allowing their herds to invade their farmlands. He said the herdsmen often delegated the task of looking after their cattle to children who are unable to keep the animals on designated grazing paths.

    “How can someone just place one man and some little children to look after 60 cows?” he wondered. “We have held meetings with their leaders to no avail.  It has now got to the extent that our farmers can no longer get food to eat from their farms while the farmlands in Fulani settlements are booming.

    “Our traders now buy cassava from Fulani people, which they usually buy from their farmers in the hamlets.

    “Young farmers have been affected, as some of them who took loans from the bank have been sent into debt.”

     

    Two-edged sword

    Turaki Shehu Muhammad is the State Secretary of the Association of Fulani Chiefs of Nigeria, Ogun State chapter. He told The Nation that the current situation had made life difficult for farmers and the herdsmen alike.

    “The government of the day has formed a committee in which Fulani people and the native farmers are represented. We have written a memorandum to the government of the day, telling them what to do. But knowing our political setting, it is the government that is delaying the implementation of these things. Really, it is both parties that are suffering. The Fulani community is suffering and the native community is suffering,” he said.

    Yakubu Bello, the head of the Miyeti Allah association of Fulani herdsmen in Surulere, Oyo State, said that his group had met with farmers and begged them for an end to violence and reprisal attacks.

    He added that the nomadic herdsmen were the ones who caused violence, insisting that there had always been a cordial relationship between the settled Fulanis and members of their host communities. He cited numerous intermarriages that have served in many instances to cement relationships.

    Fulani leaders have called for grazing reserves to be set aside for their exclusive use, arguing that this would also help reduce friction with settled communities. Although there is such provision, it is far from being adequate for their needs.

    All Farmers Association’s Ajibesin said they would not agree to the creation of a grazing reserve in Oyo State for herdsmen. He added that the association had written a proposal to the pastoralists to source readymade feeds for their cattle as is done by poultry farmers.

    Some farmers are believed to have resorted to spraying chemicals on their farmlands or poisoning the streams where the herdsmen graze their cattle. Herdsmen have also threatened to sue any farmer on whose farm their cattle die.

    Dele Raji is a farmer from Saki, one of the towns in Oke-Ogun area. He doubles as the chairman of the Oyo State chapter of the Maize Association of Nigeria. He said that herdsmen have no right to complain if their livestock fall ill while grazing on other people’s property.

    “Is it the farm that went to meet the cow or the cow that went to meet the farm?” he asked.  “That is our contention. Even if it is an open space, can an intruder just come into someone’s house without permission?”

    Anger against the state

    Farmers say that they have been betrayed by a police force incapable of protecting them from killer herdsmen. They complain that even when disputes are taken to the authorities, the compensation offered does not cover the cost of the farmlands destroyed. Raji said that farmers were often locked up unjustly while errant herdsmen, usually Fulani, brag about having the means to ‘take care’ of the police.

    But the spokesman of the Oyo State Police Command, Adekunle Ajisebutu, said that any allegation of partiality in the matter was baseless.

    He said:  “We are a federal security organisation and we work according to the constitution.  The constitution guarantees freedom of association and movement, and when there is crisis between one ethnic group and the other, you do not expect us to begin to support one ethnic group against the other.”

    He added that the police had been trying to mediate, using alternative conflict resolution methods.

    Asked about arrests, Ajisebutu responded: “I can’t give you the number of arrests we have made now. But I can tell you that we have effected some arrests as regard skirmishes and crises emanating from those places, and they have been arraigned in court. Whether they are Fulani or they are farmers, I don’t know.”

    In Ogun State, the command’s spokesman, Abimbola Oyeyemi, said that local forces had always taken action and called stakeholders’ meetings involving both groups. The herdsmen say they carry guns to protect their cattle.

    But Oyeyemi said that insinuations that the herdsmen are better armed than the police are untrue. He added that herdsmen have been warned not to carry arms. All they need, he said, are the traditional staff used to direct cattle while grazing.

    “Once we get any such information, we act swiftly to prevent violence,” he said.

  • Widows count  losses and gains

    Widows count losses and gains

    Widows all over the country recently marked the International Widows Day. In this encounter, YETUNDE OLADEINDE  takes you into their world  as they talk about their challenges  and how they have been able to survive inspite of the odds. 

    THE theme for this year’s celebration is, “Widow’s empowerment and political participation.” At the Rose of Sharon Foundation, the activities to mark the event began as early as 8.20 am when the widows and their children had free medical examinations and free drugs. Apart from ensuring that they were physically healthy, Dr Idowu Malomo , a consultant psychiatrist  who had attended to so many cases related to widows and depression, took time to talk to them about the importance of their mental health. “Depression is almost synonymous with the widows that I come across and it’s important to help them get out of this stage.”

    This year, the highlight was widows telling their stories and how they have managed to survive against the many odds. In addition, a panel of discussants advocating for more economic empowerment and political participation for widows who wish to run for political offices tried to look at opportunities and potential for these women as they face another phase in their lives.

    Many were moved to tears as a widow with disability moved towards the podium. She told her story in Yoruba and it was interpreted by the compere. “I lost my husband about nine years ago and I was overwhelmed by the burden that he left behind. I had two sets of twins and my first set was in JSS 1 when he died. I joined the Foundation and prayed that my children’s names would be picked as beneficiaries.  When the list came out, I was amazed to find that three of my children were the first three on the list. They are all in the university at the moment.”

    For Sola Ibitoye, life literarily came to a halt in 2006 when her husband died. “From the time we left the burial ground till date, I have not set my eyes on any of his relatives. I have three children and two of them are on scholarship. One of them, Oluwakemi Ibitoye, made second class upper and she got an award and N75, 000 cash last year. I shed tears of joy when I heard the news and I know that my days of sorrow were over. She is currently serving in Zamfara State.” Like Ibitoye, Abigail Ayeni who lost her husband in 2005 went down the memory lane to talk about the bad times and how she almost committed suicide when she heard that her brother-in-law was her husband’s next of kin. “He took everything and I had to survive with life as Olopo (local caterer).”

    Another widow who had challenges claiming her husband’s benefits also talked about how she got free legal services. “After the meeting last year, I was opportune to know about the assistance from FIDA and I got connected to someone who asked me to come to their office. Just before this encounter, I had been trying to pursue my husband’s money since 2007 and at a point in 2010, they gave us what I would describe as a tip of the iceberg. Somehow, I missed the place in anxiety and then I traced them to Makoko where I submitted my late husband’s documents. In the past, I went to Abuja twice, went to Pencom but it was tough getting it. FIDA put a finishing touch to it and we got the remaining part of the money this January.”

    Glory Godwin Akpan, a reggae artiste, designer and one of the beneficiaries, thrilled all to a song titled, One in a million. The guests, widows and members of the Foundation’s board of trustees took to the dancing floor and the atmosphere was charged. As Akpan stepped down from the podium, the widows shouted and she received hugs and more applause. She had obviously overcome the rough times. But as soon as you asked her about her widowhood experience, the smile and her mood changed. “It happened when we were coming back from a studio because we were both artistes. He dropped me, after recording all night, in the morning and went off to work. He later went to the bank because we were about to shoot our video. Getting to the bank, he had an accident at the bank and the glass door collapsed on him. Instead of rushing him to the hospital, they ran to call the police. They then took him to the station to make a statement. They kept him there and he was bleeding profusely.”

    It was at this point that Akpan knew about the incident and she rushed to see her better half. “I rushed him to the hospital and the clothes that I wore were soaked in his blood. He was working with Brian Munro as an engineer and he slumped at work one day. He was later taken to the company hospital because the glass scattered all over his body and he had pains all over his body. They admitted him and the expatriate who looked at him said he needed blood; he had lost so much blood. He died five months after the incident.”

    Sadly, she went down memory lane to talk about the initial shocks and how she survived the odds. “I sold everything trying to go home. To get to Akwa Ibom, you must have nothing less than five thousand naira. We are from the same place; his village is next to mine in Akwa Ibom State. First, I tried the company but they kept asking me to come today or come tomorrow. I sold my phone to have some funds at that point. The company abandoned us, the bank abandoned us and the family abandoned us. It was only God, my three children and I.”

    Akpan continued: “The family came and said that I killed their brother; they threatened me and said I would bury my children before my husband. The following day, my son was vomiting blood from the mouth, nose and ear. I rushed the children to the church immediately. After the burial, the family took everything. They went to the company and they got some money without giving me a dime. However, I thank God today because my children are alive and doing well. I met the founder of the Foundation, Mrs. Alakija, one year after the loss of my husband and she has really helped me. My last daughter is attending one of the biggest schools around and the bill is paid by the Foundation. I won an award on the 27th of May this year and life has changed positively for me and my children.”

    The first lady of Lagos State, Mrs. Bolanle Ambode, who was a special guest of honour at the event, talked about the challenges faced by widows and the fact that they are the most vulnerable group of people in the society. “To address situations like this, the Lagos State Government, through the Ministry of Women Affairs and Poverty Alleviation, has established skill acquisition centres in many areas of the state to train widows and other women in various skills and vocations at no cost to them.”

    At those centres, there are free trainings on decoration and event planning, fashion, tie and dye, soap-making, pomade-making, hair-dressing and many more. “The overall objective is to make them financially independent and become employers of labour. Following closely on economic empowerment is political participation for widows. Thanks, to our growing democracy, the political space is constantly expanding to accommodate and engage more women in political offices, either as elected or appointed office holders.”

    While noting the enormous challenges and cultural barriers for widows, Ambode advised the widows to forge ahead in order to make life better for their children. “Bad as it may be for a woman to lose her beloved spouse, that should not be the end of her own life. In most cases, children are there to look after. Therefore, women, specifically widows, should play active politics. Obviously, the gender equation in Lagos State is encouraging. Widows with the right empowerment can participate. You cannot stay out of the game, not even on the excuse of being widows.  So, come out of your shells and take part in active politics. The advantages of this include active engagement, social interaction, income and more.”

    On her part, the Foundation’s founder, Folorunsho Alakija, took time to talk about some of the projects which include the enterprise development training that helps to educate beneficiaries on basic financial management skills, customer care and effective sales conversion. “It was expanded to ‎include skills acquisition and vocational training sessions. The widows’ children and orphans who are undergraduates and graduates also received career counselling and training in CV writing skills to prepare for the labour market. We have given interest-free loans with flexible repayments plans to more than 600 widows since inception, with most of them keep coming back to ask for top-up loans once they complete the servicing of existing loans. This has helped to bring economic stability to their lives.”

    She added: “For our educational programmes, the total number of scholarships awarded to date is 1,366 comprising orphans and widows’ children. Seven widows were awarded scholarships to higher institutions under the RoSF Scholarship scheme, and four of them have graduated. The Foundation has produced 104 graduates till date, and we are still counting.”

  • Receding fortunes of family business empires

    Receding fortunes of family business empires

    They were mostly family businesses that drew their legendary success from the resourcefulness of their founders. They also held promises of growing into some of the world’s most diversified conglomerates. But like a pack of cards, they crashed soon after the death of their founders. What went wrong? CHIKODI OKEREOCHA and IBRAHIM APEKHADE YUSUF examine the issues.

    In its heyday, Ekene Dili Chukwu Transport Company was the toast of travellers. Its fleet of luxury buses and haulage trucks were arguably, the most preferred by passengers and businessmen especially those from the southeast. The luxury buses traversed the country and the West Coast, raking in huge profits and employing thousands of Nigerians. The company was synonymous with its founder, the late  Chief Augustine Ejikeme Ilodibe. The Nnewi, Anambra State-born transport mogul and billionaire businessman called the shots in the long distance luxury passenger transit and road haulage sector.

    It was in response to Ilodibe’s exploits that several other transport companies sprang up in a bid to take a slice of the juicy road transport business pie. Yet, Ekene Dili Chukwu Transport Company, which remained ahead of the competition, was just one of the thriving enterprises under the Ekene Dili Chikwu Group of Companies. Another member of Ilodibe’s once expansive business empire, Ekene Dili Chukwu Motors Limited, which he incorporated in 1977, was involved in the distribution of Mercedes Benz trucks, cars, buses and spare parts. Like his other businesses, its success dwarfed other companies’ in its category.

    Sadly however, the company’s success, together with others in Ilodibe’s vast empire was cut short on July 1, 2007 following the death of the super-rich patriarch. From that day the fortunes of the business empire began nose-dive.  Flodibe’s three widows and family members could not build on his legacy. Rather, they went for one another’s throat in what has turned out to be the fiercest family legal battle ever over who gets the lion’s share of his inheritance.

    First, it was war among his widows over his Will, which reportedly favoured the second wife, Ifeoma Stella Ilodibe. She was said to be the only one among the widows who provided the late transport magnate with an heir. This did not go down well with the other wives and their children. But as they kicked, the business crumbled, dragging along with it the collective hope and aspiration of its original owner and the expectations of Nigerians that perhaps, one day, the company would grow into a flourishing transport conglomerate.

    Ekene Dili Chukwu is not the only family business to disappear soon after the death of its founder. The way things are now, any Nigerian child born after 1993 would probably think that the late Chief Moshood Kashimawo Olawale Abiola, more popularly called MKO Abiola, was only synonymous with democracy, having won the June 12, 1993 presidential election declared Nigeria’s freest and fairest election by national and international observers. But unknown to them, the Abeokuta, Ogun State-born multi-billionaire businessman-turned politician was a seasoned industrialist.

    M.K.O, an accountant and an internationally acclaimed entrepreneur, successfully ran Concord Group of Newspapers, Concord Airlines, Abiola Farms and Wonder Loaf Bakery. Other business concerns include the late Abiola Bookshops and Radio Communications Limited. For instance, Abiola’s farm enterprises, which dealt in biological products, was in every part of the country. But for his incarceration in 1994 and subsequent death in prison on July 7, 1998, in suspicious circumstances, his farm would probably have had no rival today.

    Before the enterprise started its awful decline soon after Abiola’s death, it was said to have acquired farms varying from a few hundreds to thousands of hectares of land across the country. For instance, a 5, 000- hectare farm dedicated to sunflower, cowpea, maize and upland rice production was acquired on the Mambilla Plateau in Taraba State.

    There was also a 2, 000 hectare farm in Lafiagi, Kwara State, intended for maize, upland rice and cowpea. A 25, 000-ton capacity silo built at Lafiagi farm was meant to store maize for all seasons for the farm and other farms nearby so that growers can send their maize for off-season storage, for human and livestock.

    Another 100-hectare land in Etinan, Akwa Ibom, was for oil palm plantation, while in Eggua, Egbado North area of Ogun State, an 1,000-hectare land, originally intended for maize and cowpea, was converted to a farmland where the first largest African fish farm was to start. But was stalled by Abiola’s imprisonment and subsequent death.

    The fortunes of Concord Newspapers, which in its days was one of the most vibrant media outfits in the country, also started declining until it finally fizzled out, throwing its employees into the labour market. Recalling the disappearance of Concord from the newsstand, National Coordinator, Management Systems Consultants Association of Nigeria (MSCAN), Mazi Coleman Obasi, said: “When you go to Concord newspapers in those days, you see some of the best brains in journalism; so many journalists who are still living today worked in Concord newspapers. Some of the people that helped set up Sun newspapers were all stars in Concord.”

    Mazi Obasi expressed regrets that following the demise of the business mogul, who garnered enormous wealth and experience when he was Financial Director for the International Telephone and Telegraph (ITT), a Fortune 500 company, his family, like that of Ilodibe in protracted dispute over alleged illegal sale of some of the property he left behind.

    The story of the collapse of the business dynasties of Ilodibe and MKO is just two in the long list of family-owned businesses that crumbled soon after their founders died. The Executive Director of Shokas Industries Limited, a textile company in Ijebu Igbo, Ogun State, Mr. Lekan Sote, recalls, for instance, the sad story of one of the country’s dynamic indigenous entrepreneurs, Mr. Henry Fajemirokun. He said today, no one hears about Fajemirokun’s legendary Henry Stephens Group, which included more than 20 companies in his lifetime.

    According to Sote, who is also a journalist and an accountant, the premises of the previously venerated headquarters of the Henry Stephens Group in Lagos has since been farmed out to Indian businessmen and others. The only trace of the Henry Stephens Group is a half-portrait of the ‘Great Fajem’ sitting lonely on the floor, unattended to,” he said.

    Sote however, noted that ‘Fajem’ was wise enough to partner with foreign firms like Rank Xerox and Johnson Wax, adding that these companies endured because they have structures, and will not succumb to family pressures and intrigues. “They operate under best business practices, observances and protocols, unlike a sole-proprietorship enterprise that operates only under the whims of the individual proprietor,” Sote said.

    Other notable family enterprises that collapsed partly because they operated under the whims of their individual proprietors include those of Sir Joe Nwankwo, industrialist and politician whose beverage factory, which produced GINA soft drink, perished alongside his other businesses soon after his death; Chief G.A.D. Tabansi, founder of the Tabansi Group; Chief Israel Adebajo who was synonymous with Stationery Stores Football Club in the late 1960s; and the Odutolas.

    The Odutola business empire, for instance, was the fruit of the dreams and industry of two blood brothers, Alhaji Jimoh Odutola and Timothy Adeola Odutola. Although, the brothers were said to have laid the foundation for modern commerce and industry in Nigeria; their legacies did not endure because  their children were not interested in their businesses, which started to decline, even before their death.

    Why the business empires crumbled

    For Sote, many factors are responsible for the collapse of Nigeria’s once vibrant and promising family enterprises. The first, he said, is that Nigerian business owners appear not to be in tune with Western business practices. “We are not too well grounded in the nuances of Western business practices. We are being forced into the 21th century by technology, practices from the West; we are being compelled especially in this era of globalisation such that we don’t have what is needed such as the thinking, intellectual, moral, and even academic and mental infrastructure needed to sustain a business,” he told The Nation.

    Secondly, Nigerians, Sote said, appear to be either too scared or too spiritual to accept the inevitability of death, which is why most business owners don’t want to write a Will. “Death is inevitable, so if you are a realistic person, you will know that one day you are going to die. By writing your Will, you are setting the stage for succession because that is one way to start,” he said.

    He, however, pointed out that even when sometimes people had a Will, there have been cases where children and family members of the deceased contested the Will, insisting that their father or mother was mentally unstable when he wrote the Will. He said because many business founders die intestate, leaving no Wills about the future direction of the company, there are conflicting and contradicting claims on the estate.

    While some of the children see the business as an ongoing concern or an asset that could bring future returns, others merely see it as an inventory of items to be disposed for immediate gratifications. According to Sote, it could be that the beneficiaries are not emotionally or technically prepared for the demands of the business or the founder may have failed to expose his children to the business, its method and its contacts.

    He said many times, the business founders failed to build enduring structures for their businesses. The implication is that when they die, their children have no straws to hold on to; they start guessing, and with time, the whole thing collapses.

    Mazi Obasi argued that lack of structures is responsible for the collapse of businesses. He said most businesses and companies in Nigeria are built around their owners rather than on structures that stand the test of time. They do not put policies and procedures in place on how things should be done.

    His words: “When you hear about creating or designing business processes and procedures it means that you are designing a process that will now drive the business beyond human beings because initially the business was built around human beings. But you should create a process that human beings will now drive. So, when you leave that seat today another person sees the document, uses it and follows it; this is how this business unit is done; this is how this business is carried out etc.”

    There is also the cultural problem. For instance, as Sote observed, the dead patriarchs sometimes usually leave many wives, many children, and other dependents of different ages, spanning many generations, and with varied temperaments, caprices and values. This leads to so much unnecessary distractions and squabbles.

    The responsibilities of taking care of the younger members of the family who are either in school or learning some trade immediately (and rightly) falls on the resources of the company. Unemployed wives also begin to make demands on the estate. These demands affects cash flow requirements of the company for future reinvestment or new investments.

    He said because some people are essentially self-centred, it makes them distrust others, “Some of the beneficiaries, who have the opportunity to operate the companies, may be dishonest, incompetent or inept, and may therefore run the business aground. Others may divert part of the commonwealth to their private use. Even professional managers, who may be more competent, end up pilfering the resources of the unsuspecting beneficiaries,” Sote said.

    This, according to Mazi Obasi, holds true. He noted that in some cases, family members who are interested in being part of the business have other ulterior motives particularly if it’s a polygamous arrangement. “There is this in-fighting in the house, he said, adding that distrust is also responsible for why some business owners are reluctant to engage the services of mentors and consultants despite the fact that entrepreneurship takes a lot. “In this part of the world the word consultancy sounds utopian,” he told The Nation.

    That is not all. According to President/Founder, Anabel Group of Companies, Dr. Nicolas Okoye, most businesses fail because their owners make the mistake of holding onto the business with little or no regard for growth and expansion. Okoye, an expert in strategic planning, leadership, business growth and development, said, “Majority of our companies are not public companies and once they’re not public, they are not meeting corporate governance standards that place high premium on sustainability.”

    Fellow/Senior Lecturer in Finance at Lagos Business School (LBS), Dr. Kayode Omoregie, also observed that poor governance issues are rampant in most family-run businesses because the owners are not willing to let go to pave way for better management.

    Omoregie who has over 25 years experience different sectors with bias for financial advisory consultancy and strategy formulation, said there is something about the average African that makes him believe that everything should be for him alone. This, according to him, explains why most family-businesses do not surrender themselves to the principles and tenets of corporate governance.

    Local successes

    Some, not all Nigerian family businesses fail. There are quite a number of good examples of family-businesses that have stood the test of time, having put in place robust succession plans and corporate governance standards. For instance, Okoye pointed out that the Group Managing Director (GMD) of Diamond Bank, Uzoma Dozie didn’t just wake up and assume the leadership position.

    According to Okoye, “He got well-trained and well-groomed that eventually when it became his time, he was appointed by the board. So his father didn’t even have to play a role in his emerging CEO anymore because he was the most senior executive director at the time. And this is all because he had the training and the grounding. So, even in Nigeria there are examples of where proper succession planning has been done. We can only hope that other companies will emulate those examples and take advantage of it.

    First City Monument Bank (FCMB), another of Nigeria’s successful banks, may have done just that. Its GMD, Ladi Balogun, is the son of the founder, Otunba Subomi Balagun. As Obasi noted, the elder Balogun had sent Ladi abroad where he read and learnt everything related to banking. Upon his return, Ladi’s father gave him a senior management appointment, which he quickly turned down. Rather than take up the position, the young Ladi decided on his own to be a cashier at the counter where he would have the opportunity of dealing directly with customers.

    Obasi said by beginning the learning process from the lowest rung of the business ladder, it is impossible for anybody to tell the GMD what is happening at the counter now that he is at the top echelon of the bank. “If you over promote somebody he is missing a lot. Experience is not something you acquire from school. If you want your successor to learn then he should start from where those missing gaps would be so that he can grow like a normal person in that organisation knowing that at the end of the day that top position is meant for him, but he should acquire experience through the ladder,” he counselled.

    The Nation learnt that in the case of Diamond Bank, the financial institution decided to be even more successful simply because it was being derisively referred to as a family bank. The bank’s network of branches locally and internationally attests to its remarkable success of yanking off the toga of a family bank.

    Grooming, overseas training critical

    Sote recalled that at 12, he had started attending to customers in his father’s textile business even before he ventured into manufacturing. He said apart from the need to introduce children into the business early enough, “you need to train them in your business irrespective of what they studied.”

    But in doing so, Okoye advised that parents should ensure that their children are grounded not just in the business, but also in the environment they are asking them to operate in. “The grounding has to be in threefold, that is the local environment, the business itself and the industry itself,” he said.

    While noting that there is nothing wrong in parents putting their children in charge of their businesses, he told The Nation that it becomes a problem when this is done without appropriate training. “Some parents still do it and I think that’s a really poor judgment. It is at huge cost to their business. Most of the people who did in the past their businesses crashed not too long after they died. So, the need for education around the business is very important,” he insisted.

    Okoye is right. Some business owners send their children to some of the best schools abroad. Upon their return, they are put in top management positions without being groomed. He said putting a green horn in a position of authority where he or she takes decisions that affects the lives of people that work for them and the business as a whole is a recipe for disaster. “Without that grounding, even with a Harvard education, they can’t take the right decisions,” he emphasised.

    Omoregie, who concurs with Okoye,  said while there is nothing wrong with allowing kids to takeover companies, not allowing them grow through the ranks is a recipe for failure.

    “You just don’t bring them from wherever and dump them there. Even with the best Harvard education, a child who doesn’t understand the locale in which he would operate is not likely to succeed in business. So proper grounding is important and absolutely necessary. There are no two ways about it,” he said.

    For Okoye, the tendency to allow the would-be successor grow through the ranks is more if it’s a public corporation, as the founder can’t just make his son or daughter the CEO. “He has to grow through the ranks. You can be the majority shareholder no doubt, but for your son to become the CEO, if you so wish, he has to learn the ropes,” he pointed out.

    To underscore the importance of proper grooming/training of would-be successors, Mazi Obasi said Nigerian businesses could learn a few tricks from what happens in the royal family in the United Kingdom (UK). While noting that the issue of who occupies the position of king or queen has never been in contest, “Whoever occupies what position is made to go through the normal school; for training, they send them to the military, they also go to war, it’s to build the person up. That is not what our business owners are doing.”

    He also remembered the story of a guy whose father was successful in business. But when he came back after schooling abroad, he refused to join his father’s business, preferring instead to work elsewhere to acquire the experience needed for him to be able to come and join his father’s business. Obasi said although, the guy’s father is late now, he is the one managing the business after acquiring a lot of experience from outside.

    Lessons from successful global brands

    Sote recalls, how an American grandfather encouraged each of his two sons-in-law to start a small scale family business. While the first son-in-law produced soap, the second made candles. This family business grew into the business behemoth now known as Procter & Gamble (P&G), with tentacles all over the world. The multinational is said to produce more than 300 fast moving consumer products including detergents, soaps and toothpaste.

    Omoregie said P&G and indeed, other global brands that have survived many generations are mostly those that surrendered themselves to the principles and tenets of corporate governance. He said because many Nigerian businesses observe such principles and tenets only in the breach, they could not boast many branches except perhaps, banks because of the peculiar services they offer.

    Omeregie recalled his experience when he visited a winery, a family-owned business in Spain, where the CEO and chairman of the company is a 60-year old man. According to him, the acreage where the winery grows its fruits was massive, even the cellar where they store wines required about 45 minutes journey by mini train to get there.

    “The entire cellar was built underground, and the value of the inventory of the wines we had there was over 1.8 billion Euros. Some of the wines were as old as between 60 and 100 years, while the business itself was over 150 years old. And here was a business that was not publicly quoted yet doing well, having survived many generations. And there are hundreds and thousands of that kind of business situated in Spain and other parts of the world,” he told The Nation.

    Other existing foreign businesses dating back over a century and counting include Ford Motors, Kentucky Fried Chicken (KFC), Wal-Mart, MacDonald’s, Johnnie Walker, Coca Cola, General Electric, Sony, Panasonic, Julius Berger, and General Motors, among others. A common thread that runs through these companies is ‘survivability’, which, according to a brand specialist, Mr. Sola Oladipupo, is the ability to sustain brand equity.

    He said compared to most of Nigeria’s indigenous businesses, a lot of companies that have survived centuries and are still in existence have been able to achieve that longevity simply by adopting winning techniques, which have placed them in good stead. He however, said winning techniques are not cast in stones, as the world is dynamic, requiring any business to constantly think out of the box.

    “There are also bad stories out there. For instance, IBM typewriters, Polaroid cameras, to mention just two, are no longer in vogue. The promoters of these businesses probably didn’t take the initiative when their contemporaries did and hence were driven out of business,” he said.

    Mr. Ifeanyi Nwade, General Manager, Finance, Nigeria Export Import Bank (NEXIM), believes that any businessman worth his salt must adopt what he described as “the IMF, the three nuggets of business success, which are ideas, management and finance.”

    Stock market to the rescue

    For the President, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, one way to guarantee businesses is to be listed on the stock exchange. He told The Nation at  the weekend: “The only way is for family businesses, personal businesses to be listed on the stock exchange. That way, the company is out of the control of the family, it then becomes a publicly quoted company, where professional consideration, and not sentiment, informs every decision to be taken in the interest of the company. That way, it is no longer a one-man show.”

    He recalled that despite being the president of the Manufacturing Association of Nigeria (MAN) at a time, the late MKO Abiola never got his companies listed.

    He said ABC, a transport firm, founded by Frank Nneji, is one company that will outlive the owner simply because it is now owned by the public. The founder has taken the right steps by having it listed on the exchange,” he said.

    Will owners of existing family enterprises listen to these words of wisdom?  Time will tell.