The Nation Newspaper

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  • We are proud to be ASCONIANS, say participants

    We are proud to be ASCONIANS, say participants

    The 37 participants that graduated from a two-week programme of ASCON have described their experiences as ‘unforgettable’; adding that should they have their way, they would like to come back again. The participants also praised the curriculum contents for the two courses which they agreed were ‘creatively drawn up’ and ‘planned to meet the ’21st Century demands’.

    Speaking on behalf of the participants during that passing out at the college auditorium in Topo Badagry on Thursday last week, the graduands class governor Elder Udoh Brownson Ekpeyong thanked the management of ASCON particularly the college resources persons.

    “They (resource persons) are simply wonderful” said Elder Brownson, “this is not a college where teachers look down on learners. They took us as friends. Their class sessions were interactive because everybody was meant to participate. The training was also rigorous despite the differences in our ages. They made us believe we were not here for frivolities but serious business. The field trip outside the college was also awesome.

    “We are proud to identify ourselves. Our leaving here today provides a sort of mixed feelings. We are first sad that we will be departing this serene environment and bid farewell to our various destinations; the joyful thing however is that some of us we are homesick and are now happy to rejoin our family.

    The field trip to the Public Sector Auditing Unit of the Lagos State government as part of the training would forever linger in the memory of another participant, Ekweoporo Linda.

    Miss Linda who works in the auditing unit of the National Ear Care Centre, Kaduna shared her experience.

    “The training met our set objectives particularly mine,” Linda stressed. “During the field trip to the Auditor-General’s Office in Alausa, we were lectured on various laws governing auditing and how auditing is carried out in different organisations since many of us also came from different organisations. The involvement, for me, was simply an insight to public sector auditing.”

    Another participant, Mr Kaka Adam Kyari a project Accountant with the Rural Water Supply and Sanitation Programme, Yobe State said the facilities are awesome.

    “This is my first time here; but I keep wondering if I’m still in Nigeria. The environment is friendly and conducive for learning. There is uninterrupted electricity supply 24 hours. There accommodation is quite ok. If given another chance, I would love to come back again and I now have a lot to share with my friends when I return. This is simply a home away from home,” Kyari said.

    Earlier the college Director-General Mr Ajibade Peters, said the introduction of the Use of Computer for Financial Management course was informed by the reality that the world is fast drifting away from analogue to digital technology.

    According to Peters, the computer course aims among other things to “help participants in the design and implementation of financial information system’; ‘prepare, monitor and evaluate budgets using computer’; ‘make financial projections and analysis using computer’; and ‘use the computer for the purpose of managing inventories.”

  • School celebrates WASSCE result

    School celebrates WASSCE result

    It was a harvest of academic excellence for the pioneer students of SOFUNIX International College, Oko-Oba as they recorded 98 per cent pass rate in the 2012 West African Senior School Certificate Examinations (WASSCE).

    Proprietor, Mr Sola Oni said each pupil passed a minimum of seven subjects including English language and Mathematics – thanks to the rigorous academic work the college put them through. Oni also attributed the successful performance to availability of qualified and committed teachers who understand the peculiar needs of each learner, as well as the conducive learning environment provided by the school, including availability of teaching aids, adoption of mentoring and counselling strategy to complement teaching activities.

    “The West African Examinations Council has announced38.81 per cent pass rate in five credits and above including English Language and Mathematics in 2012 WASSCE. It is heart-warming that our college is one of the successful institutions. We thank God Almighty for allowing us to realise our dream of coming out with strong academic performance right from the pioneer students. We shall continue to work round the clock to sustain and even surpass the current performance. Our ultimate goal is to develop youths that would take up leadership position in the medium and long term,” he said.

    The Chairman, SOFUNIX Parents and Teachers Association, Mr Gbenga Badejo said the good performances did not come as a surprise because of the school’s policy of high academic standard in line with its vision, mission and core-values.

  • You and your teenager

    You and your teenager

    Stories abound of parents shocked by the double lives their children live, especially when trouble strikes. They find it difficult to believe that their children can commit hideous crimes like robbery, murder or rape, or in case of suicide, cannot understand why their very happy children would take their own lives.

    Almost always, the children at the centre of such stories are adolescents. Adolescence is that mysterious stage during which things are not necessarily as they seem. This means that parents have to be extra vigilant or their lovely children would metamorphose into beasts under their roofs.

    At the age of 10, when the average child should be in the final year of primary school, he or she is already aware about feelings that develop between the opposite sexes and may be discussing it with classmates and friends.

    This sexuality awareness grows in secondary school. This is so for girls, especially when their breasts and figures begin to develop. They become conscious about their bodies – what they have that others don’t, and vice versa. They share stories with friends, who may have heard the stories from others or adults living around them, and are susceptible to temptations to jump on the bandwagon if they feel insecure. They usually want to belong, be fashionable, use the latest slangs, know what is happening on television or the internet, and generally be in tune with what is trendy in the world around them.

    During this period of their lives, they prefer the company of their peers to boring parents. When they hang out with friends, they learn so much about life and try to make a meaning out of the myriads of information they get by experimenting. The internet is increasingly becoming popular among youths locally because cost of owning personal laptops and internet access is reducing so they get to satisfy their hunger for information and entertainment.

    Unfortunately, they do not always get the right information from the right sources and if parents or trusted adults are not there to guide them, and they do not keep good friends, then things are almost certain to go awry for them. They either clash with their parents over values, or live almost unnoticed if adults are too busy to attend to them.

    Somebody shared a story about a woman’s discovery of porn websites on her husband’s laptop lately. The man could not convince his wife he knew nothing about it, no matter what he said. When told, the person who shared this story with me and some colleagues said he immediately discerned that his friend’s teenage son was responsible. With his friend’s permission, he took the son for a ride during which the lad confessed he visited the sites.

    The best way to know what is happening in your child’s life is to leave lines of communication open between you such that they can raise any issue bothering them with you. Encouraging them to share stories about how they spent their time in school and with friends will provide opportunities for you to point them towards the right direction as you review their decision making process.

    It is also important that parents help develop their ward’s self esteem and teach them the right values so that they do not bow to pressure because of inferiority complex. This does not mean that parents should bar their children from making friends. On the contrary, friends should be allowed to visit so that parents can monitor who their children relate with. Doing so would provide them with insight on what their wards could do behind theim.

    Considering that a large percentage of the total population of people living in sub-Saharan Africa is adolescents, it is important that they are not neglected. Unfortunately, the 2011 UNICEF report on the State of the World’s Children which focuses on adolescents, says that this segment of the population do not receive as much care and attention as the children.

    If well catered for, I am sure we will benefit from the energies of these young ones. Their optimistic outlook to life and penchant for adventure means we can look forward to a developed world that is as interesting as it is varied.

  • Fed Govt urged to increase Unity Schools’ boarding fees

    Fed Govt urged to increase Unity Schools’ boarding fees

    •King’s College marks 103rd anniversary

     

    An increase in the N4,000 boarding fees charged pupils of Federal Unity Colleges could help the schools to divert fund to other fruitful uses.

    King’s College Principal, Otunba Dele Olapeju said at a briefing last Friday ahead of the college’s 103rd anniversary that the management and the old boys’ deserve praises for keeping the facilities of the school, especially the 105 year-old three-storey administration/classroom/hostel building functional despite limited funds.

    Olapeju said sister colleges as old as King’s College owned by the missions have access to more funds because they charge up to N100,000 as boarding fees; while elite private schools can get a lot of funds from the high fees they charge.

    However, despite the challenges, Otunba said the college has ensured judicious utilisation of funds, and made efforts to seek funding from other avenues.

    “I am an advocate that the Federal Government be bold enough to increase boarding fees so there will be room for other development. We charge boarding fees of N4,000 and we have 4,000 students. Some of the mission schools charged N100,000 as boarding fees. Our capital allocation from the Federal Government is N42 million. That would be contributed by 40 students in Grange or Dowen College. But I believe in the maximization of the little we receive. We have a building housing 16 staff without a penny of government money. On our own, we rehabilitated the sports field and other facilities,” he said.

    Vice President of the King’s College Old Boys’ Association (KCOBA), Dr Leke Oshinniyi also lent credence to the principal’s claims, saying that a lot of funds has been infused into keeping the oldest building in the school habitable.

    “Nigeria will be 100 years in 1914. We should be praised for keeping this building habitable,” he said.

    He added that alumni of the college has contributed immensely to the development of Nigeria, including the late Biafran hero, Odumegwu Ojukwu; first Chief Justice of Nigeria, Justice Adetokunbo Ademola; Federal Commissioner for Information, Chief Anthony Enahoro; Federal Commissioner for Works, Chief Femi Okunnu; Sir Akanu Ibiam, and the like.

    In contemporary times, Secretary General of the association, Olu Akpata added that the college also boasts of chief executives that are making their mark, including Mr Kehinde Durosinmi-Etti, Managing Director of Skye Bank; Mr Yemi Adeola, MD, Sterling Bank; Mr Atedo Peterside, Chairman of Stanbic IBTC; talented producer, Colbams Asuquo among others.

    Activities lined up for the anniversary include the Founders Day Lecture entitled: Promoting Value Education in Nigeria to be delivered by Prof Ayotunde Fetuga, an old boy today; novelty match between workers of King’s and Queen’s Colleges, Jumat and thanksgiving services. Highlight of the event will be the KCOBA dinner which comes up on Saturday, and the KCOBA Annual General Meeting on Sunday.

  • House uncovers plot to remove Tambuwal

    House uncovers plot to remove Tambuwal

    –Jonathan meets Mark, Speaker over N5000 note row

    –Anxiety as lawmakers get set for projects inspection

    House of Representatives leaders summoned an executive session yesterday.

    The unusual meeting came 24 hours after their resumption from recess.

    It was all to stop a plot to remove Speaker Aminu Waziri Tambuwal from office.

    The plot, being co-ordinated by a lawmaker from Niger State, Mohammed Sani Idris Kutigi, the House leadership believes, is being sponsored by some forces in government, who allegedly felt embarrassed by the recent budget implementation row with the Executive.

    According to sources, most members of the House got yesterday a text message inviting them to “Operation Clean” in the chamber.

    The text reads in part: “This is inviting all first term members of the House of Representatives to an urgent meeting and launching of the project, “OPERATION CLEAN. Date, 20 September, 2012. Venue-Transcorp Hilton, Abuja. Time: 11am prompt. Hon. Mohammed Sani Idris Kutigi, Coordinator.”

    Some first term members alerted the leadership of the House. They planned to boycott the said meeting.

    It was learnt that most of the first term members had queried the rationale behind the Kutigi meeting.

    It was also gathered that there was tension in the House when old members got wind of the proposed meeting. The leadership then called for an Executive Session.

    The uncovering of the plot by the House rattled the coordinator of the “Operation Clean” and his team.

    Some sources, who spoke in confidence, confirmed that at the Executive Session, most members condemned attempts to divide them by the new group.

    One of the sources said: “We challenged Kutigi and those in the so-called new group to tell us their mission because we got wind of the fact that those forces trying to use them have been calculating on the numerical strength of first term Representatives to cause a crisis in the House.

    “Some of us observed that the slogan of the group, ‘Operation Clean’, is mischievous and pointed to a move to ‘deal’ with the leadership of the House.”

    Another source said: “We learnt that some of these forces were not happy about how we raised issues on budget implementation and the new Petroleum Industry Bill (PIB).

    “Virtually everyone stood up to denounce the mission of this group. We thought we were building a new chapter with the Executive arm but some forces are not going along with the reconciliatory agenda of President Goodluck Jonathan.”

    A high ranking member said: “When we confronted Kutigi at the Executive Session, he said: ‘My intention is not malicious, I am not plotting against the House. I have no plan to destabilise the House.’

    “At the end of the day, Kutigi backpedaled on the plan. He said it openly that ‘the meeting has been canceled’.”

    The source added: “What we did on Wednesday has overshadowed what they had initially planned. So far, we have told them that the unity of the House is not negotiable.

    “But we have chosen to watch our back because these forces might regroup soon against the House.”

    According to a source, the leader of the a group of about five lawmakers, mainly from the North took the floor accusing the Speaker of starving the lawmakers of funds with which to run their constituencies.

    The source said the leader of the group, who chairs a committee and also a major beneficiary of the House leadership’s goodwill, informed the session that they were made to believe that the funding challenge members were facing was the handiwork of the Speaker.

    The source said: “He did not mince words that it was the Executive that informed them that the financial crisis was caused by the Speaker. The group leader told the House that some of them (the lawmakers) have been hugely indebted as a result of lack of the fund.

    “He added that some of them have to tactically run away from their constituencies just because they didn’t have enough money to service their hangers-on and others that might need financial assistance.

    “So, they felt that if not for the Speaker, the situation could not have been that bad. They agitated for an increment of their quarterly allowances from N25m to N35m.

    “The Speaker explained that it was a delicate issue, citing previous attempts to cause disharmony in the House and where it ended.

    “At this point, the Speaker said it was a deliberate attempt to cause crisis in the ranks of the lawmakers. He reminded them of what happened in the 6th House over a similar increment.”

    The source added that rather than take over his own defence, the Speaker asked the Clerk of the House to clarify the issue with the official financial standing of the House.

    “The Clerk brought financial documents with which he explained the state of the House’s finances and the aggrieved members apologised for being misguided. What I can only say about this is that the Speaker was able to manage the crisis very well, otherwise this could easily have degenerated into a serious issue. Already, some member were hinting at impeachment.”

    Another source however told our correspondents that the crisis might not be over yet as the aggrieved group might meet again today.

    “The group started working on their moves during the recess and with the development of today (yesterday), they have to appraise the result and deliberate on what next to do.

    “You know they were even sending messages to members to garner support for their move, apparently, the Speaker was able to manage it well.

    When our correspondent called one of the supposed actors on the telephone, he vehemently denied involvement. “There’s no project like operation clean up project. Is that what you were told? He queried our reporter and promptly cut his line.

  • Jonathan meets Mark, Tambuwal over N5,000 banknote

    Jonathan meets Mark, Tambuwal over N5,000 banknote

    President Goodluck Jonathan has met with Senate President David Mark and House Speaker Aminu Waziri Tambuwal on the decision of the National Assembly to reject the introduction of the N5,000 note by the Central Bank of Nigeria (CBN).

    It was learnt that at the Tuesday night meeting at the Villa, the President expressed worry on plans by the National Assembly, especially the House, to begin Status Enquiry on Capital Projects in the 2012 budget.

    But Mark and Tambuwal assured him that the physical tour of projects was not meant to attack the Executive or initiate impeachment proceedings against him.

    The President met Mark and Tambuwal after the two chambers of the National Assembly opposed the introduction of the N5,000 note by the CBN.

    A source, who pleaded not to be named because he is not allowed to talk to the media, said the Senate President and Speaker insisted that the timing of the N5,000 note was not good.

    They also conveyed the feelings of Nigerians that they do not want the denomination, asking President Jonathan not to run against the wish of the majority of Nigerians.

    The source said: “The President and the National Assembly leaders had mutual discussion on the arguments for and against the N5,000 note.

    “At the end of the day, the President told the leaders: ‘If that is the popular decision of Nigerians, we will advise the CBN to have a rethink of the policy. We will not enforce it because we cannot run against the wish of our people.’

    “The President was not too categorical but his body language at the meeting indicated that he might consult with the CBN and the Economic Management Team to drop the introduction of the new note.”

    It was gathered that the President was concerned also about the decision of the National Assembly to embark on Status Enquiry on Capital Projects in 2012 budget.

    According to another source, the President felt physical verification of capital projects by members of the National Assembly might still be a carry-over of the row between the Executive and the Legislature over budget implementation.

    But the Speaker explained that the inspection is designed to assist the Jonathan administration to know the true position of implementation of capital projects.

    “We are not out to undermine your administration or move against you,” the Speaker was quoted as assuring the President.

    The House also agreed to go ahead with its planned Status Enquiry on Capital Projects in 2012 budget from next week.

    This decision was reached at an Executive Session yesterday.

    A source said: “As part of our discovery that budget implementation is low, we will begin inspection of project sites as from next week.

    “This inspection will be solely financed by the House; we won’t take a penny from the Executive. We want to know whether these MDAs are working on not.

    “After the tour, we will be able to determine the true position on the implementation of the 2012 Budget and give Nigerians the accurate percentage of execution.

    “We want to ascertain the list of contracts awarded, status of projects and the extent of cash backing.

    “This Status Enquiry will also assist us in considering the 2013 Budget due for presentation by the end of this month. The era of abandonment of projects is gone. We will not appropriate funds for abandoned projects.”

     

  • Slain ex-Prisons chief’s home torched as terrorists’ victims are buried

    Slain ex-Prisons chief’s home torched as terrorists’ victims are buried

    IT was a job they never prepared for. But, for the families of the 10 people killed in Bauchi, there was no running away from the funeral.

    The ceremony evoked so much emotion and tension in Bauchi on Tuesday and yesterday.

    Nine of the deceased were Sayawa. They were buried in Bauchi, the state capital and in Bogoro Local Government Area.

    Security was tight as Sayawa youths protested the killings. The Sayawa are a minority ethnic group, who are mostly Christians in a predominantly Muslim environment.

    The body of the retired Comptroller General of Prisons, Ibrahim Jarma, was buried in Azare, headquarters of Katagum local government.

    But, it was a double tragedy. As the funeral got underway, the late Jarma’s home was set ablaze.

    Two minors were arrested in connection with the arson.

    One of them allegedly confessed to the police that he was asked by an unnamed mallam (Islamic teacher) to burn down the house, a four-bedroom bungalow on the Azare-Jama’are Road, for a fee.

    Governor Isa Yuguda pledged to keep the peace after visiting the families of the victims.

    Jarma, 65, was the 14th Comptroller-General of Prisons. He served between March 1996 and July 2002.

    He was shot on Monday as he came out of a mosque in his home town. He died on Tuesday.

    Over 2000 Muslims and Christians prayed at the Azare Central Mosque.

    The funeral prayer was led by Azare Chief Imam Alhaji Ayuba. The late Jarma is survived by two wives Hajia Saratu and Hajiya Adama, and nine children.

    Many shed tears in Bauchi and Bogoro as the bodies of the nine Sayawa were buried amid tight security.

    Angry youths chased away journalists at the Christian cemetery at Yelwa, during the burial.

    The reporters who were waiting to interview Rev.Lawi Pokti, the Bauchi CAN Chairman, suddenly took to their heels when the angry youth numbering over 200 advanced menacingly towards them.

    The quick intervention of security agents saved them from being lynched by the angry youths.

    “They killed our people, now you are here to take our pictures, the pictures of the dead, so that you will go and show them to mock us”, they shouted.

    The journalists were taken into the Bauchi Police training School opposite the cemetery where they waited for over an hour before peace returned after the burial.

    The Bauchi State Government donated food stuff and an undisclosed amount of money to the families of the victims who were killed on Sunday evening at Zango in the Bauchi metropolis, by unknown gunmen.

    The undisclosed cash and food items, according to Yuguda’s Chief Press Secretary Ishola Michael Adeyemi, were donated on behalf of the state government by Pastor Kennedy Masau, a Director-General in the office of the Chief of Staff to the Governor.

    Kennedy led a government delegation on a condolence visit to the families of the bereaved at the COCIN Church, Zango.

    Presenting the government’s aid to the families through the Bauchi Local Government Council Christian Association of Nigeria (CAN), Kennedy said it was to fill a temporary gap and not a compensation.

    The CAN chief hailed the government for the quick concern shown to the bereaved families, and urged Christians not to avenge the death of their loved ones.

    Six of the dead were buried at the Christian Cemetery in Bauchi. The others were buried in Bogoro Local Government Council.

    Yuguda described the killings as “painful” and promised to do everything possible to apprehend the culprits.

    Responding on behalf of the relations of those killed, Mr Iliya Ayuba said they were shocked by the incident.

    He said Christians and Muslims had been living in peace and never expected such a thing to happen.

    Ayuba called on the people of Zango to maintain the peace and urged the state government to station a team of the Special Anti-Robbery Squad in the area.

    The governor also visited Azare to commiserate with the people over Jarma’s death.

    Yuguda described the former prison chief as an asset to the state, adding that he would be missed.

    Replying on behalf of the people, Alhaji Yayale Ahmed, a former Secretary to the Government of the Federation, thanked the governor for finding time pfor the condolence visit.

  • ‘Assembly resolution on N5000 note not binding on Fed Govt’

    ‘Assembly resolution on N5000 note not binding on Fed Govt’

    The government is not bound by Tuesday’s resolution of the Senate and the House of Representatives asking Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi not to print the proposed N5000 banknote. Minister of Information Labaran Maku has said.

    The Minister spoke on Tuesday night at the national secretariat of the Nigerian Union of Journalists (NUJ). He was a guest at a an interactive programme, the People’s Forum.

    Maku dismissed the debate and controversy over the proposed bank note as unnecessary, saying that the powers vested in the CBN by law on monetary policies remained sacrosanct.

    “I believe we should allow the CBN to take leadership initiative on this issue. This is not an opinion poll debate but a technical matter and the heated debate will not help in the management of our economy,” the minister maintained.

    He added that while the Federal Government had not foreclosed dialogue with the federal lawmakers on the policy, the erroneous impression should not be created that the resolution by the parliament is in any way binding on the Federal Government.

    He said: “The National Assembly has oversight functions and the Executive takes resolutions of the National Assembly seriously. But resolutions are not Acts of Parliament.

    “We can discuss, debate resolutions, take them seriously and factor them but they are not Acts of the National Assembly.”

    The minister also restated the position of the Federal Government on the issue of Bakassi Peninsula, which was ceded to Cameroun by the International Court of Justice (ICJ), saying that that the case is closed.

    According to him, the Federal Government does not have any fresh facts or a new position on the ICJ ruling on Bakassi and called on the public to be more diplomatic in making demands on the Bakassi. He urged agitators to be mindful of the need for good neighbourliness between Nigeria and Cameroun.

    “Nigeria does not have a new position. Nigeria’s position is in conformity with the judgment of the International Court of Justice,” Maku said.

     

  • Fed Govt to scrap agencies next year

    Fed Govt to scrap agencies next year

    •Fuel subsidy scheme to be restructured

    Some federal agencies will go next year, it was learnt yesterday. The Federal Government has also initiated steps to streamline the management of the subsidy scheme in the next fiscal year.

    This is contained in the 2013-2015 Medium-Term Expenditure Framework and Fiscal Strategy paper submitted to the Senate by President Goodluck Jonathan.

    The government’s fiscal policy was read by Senate President David Mark, on the floor of the Senate yesterday.

    It said pursuant to sections 13, 12 and 11 of the Fiscal Responsibility Act, 2007, the preparation towards submission of the 2013 Budget to the National Assembly has begun with activities leading to the preparation of the 2013-2015 MTEF and Fiscal Strategy paper.

    On the scraping of agencies, it said reduction in the size of government would be achieved through stricter rationalisation of available resources, including sustaining the reduction of overhead votes.

    The MTEF said in furtherance of the reform agenda, the Federal Government would also “rationalise the large number of agencies based on the recommendations of the Oronsaye Committee.”

    The MTEF said the figure for overhead decreased from N536 billion in 2010 to N266 billion in 2012.

    It said overhead expenditure is expected to reduce in 2013 to N230 billion or 4.67 per cent of total expenditure.

    The paper said: “In addition, other measures that are being implemented including deferring the procurement of administrative capital: the establishment of a Treasury Single Account (TSA) to manage cash balances better, reduce corruption as well as inefficiency in allocation of resources.

    “Government has also introduced the Government Integrated Financial Management Information System (GIFMIS) to make the process of budget preparation and execution more efficient and transparent.”

    It said that the focus of government will continue to be on completing ongoing projects, particularly those with high rate of return.

    On fuel subsidy, it said that in the light of the huge amount paid on petroleum subsidy last year, the Federal Government has initiated steps to streamline the management of the subsidy scheme.

    The restructuring, it said, will include strengthening the audit and verification process to improve its governance, transparency and accountability.

    It said these are expected to yield full results next year, while the Subsidy Re-investment Empowerment Programme (SURE-P.) instrument will continue to be used as an intervention window to mitigate the impact of the partial subsidy removal.

    The document said as “government continues consultations regarding future policy on subsidy, some amount is being provided for petroleum product subsidy in the 2013 budget.”

    It said in recent times, the recurrent expenditure profile has tended to crowd out capital expenditure.

    The increase, it said, can be attributed largely to the rising personnel cost resulting from the increases awarded to civil servants, medical personnel and Academic Staff Union of Universities (ASUU) staff since the 2009, as well as the implementation of the Minimum Wage Act 2011.

    It described the personnel cost increase as a sensitive issue saying only a holistic approach can generate a viable and sustainable solution.

    It said that the diversification of the economy is a critical objective of government “as our over-reliance on oil revenue has hampered the growth of the non-oil segment of the economy.”

    On debt profile, it said that as at June 2012, the total external debt stock stood at $6.0 billion.

    The Federal Government share of the debt, it said, was $3.8 billion (63.3%), while the 36 states and FCT accounted for the balance of $2.2 billion (36.7%)

    Similarly, it said that domestic debt for the same period stood at N6.15 trillion, bringing the total debt to N7.11 trillion which is 17.8 per cent of GDP.

  • Concerns over access to NEXIM Bank’s $200m package for Nollywood, others

    Concerns over access to NEXIM Bank’s $200m package for Nollywood, others

    The nation’s film industry is believed to have the potential to aid the diversification of the economy. This explains why  President Goodluck Jonathan provided a $200 million (about N300 million) intervention fund for the creative and entertainment sector. But, almost two years after the fund was announced, only one film, Doctor Bello, has benefitted from it, writes  VICTOR AKANDE

    The figures are encouraging. Nigeria’s economy grew by 6.28 per cent in the second quarter of this year and inflation fell for the second straight month in August. The GDP growth in Africa’s second largest economy climbed in the second quarter, up from 6.17 per cent in the first quarter.

    According to statistics released last week by the National Bureau of Statistics (NBS), the growth is driven by the non-oil sector.

    “The non-oil sector was driven by growth in activities recorded in the building and construction sector, while oil sector output decreased (compared with Q2, 2011),” the NBS said in a report.

    This is despite the fact that the oil sectr accounts for more than 80 per cent of Nigeria’s revenue and about 95 per cent of its foreign exchange earnings.

    The search for alternative sources of growth and foreign earnings made the Federal Government to consider the country’s film industry, poularly known as Nollywood.

    The reasons for this are not far-fetched: In the last four years, it has consistently churned out over 2,000 films. In 2008, 2,408 films were produced; In 2009 recorded 2,514 films; and 2,621 films were produced last year. Nollywood, as the industry is known, is ranked first in the world in quantum and third in revenue generation, with receipts over the years estimated at between $300 million to $800 million.

    Little wonder researches have taunted it as a viable non-oil sector money spinner for the government.

    But, it is generally agreed that for the industry to realise its potentials, the government must offer some stimulus. So, it was good news when in November, 2010, President Goodluck Jonathan announced his administration’s decision to float a $200 million revolving loan scheme for the industry.

    Two months away from now, the announcement will be two years. Stakeholders in the industry are agitated over access to the fund. Only one producer, Tony Abulu, has been able to access the fund through the Nigerian Export and Import Bank (NEXIM) for the production of of his Doctor Bello.

    NEXIM is one of the approved banks for the management of the fund.

    The film is billed for a world premiere at the John F. Kennedy Centre for Performing Arts, Washington, United States on September 27.

    Some practitioners in the sector have questioned why Abulu, who lives in the United States, should be the first to access the Nigerian Creative and Entertainment Industry Stimulation Loan Scheme. Many have described the process of accessing the facility as too technical. Others believe the collaterals are cumbersome to meet.

    Veteran filmmaker Dr. Ola Balogun believes the bank has a ‘hidden’ agenda. Balogun, in a piece entitled: ‘NEXIM: What agenda?’ doubts the bank’s understanding of the industry to channel the fund properly.

    Balogun said the government’s interest in the art and entertainment sector can better be advanced through grants or film funds rather than a loan. He said there is no nation that conducts cultural policies by requiring artists and cultural workers to queue up in banks for loans.

    He said that in the US, support for the arts is conducted through foundations and through state-supported entities such as the National Endowment for the Arts.

    Balogun faulted the process that subjects artistes to the rigours of filling forms access loans. He said artistes are not businessmen, experienced n such financial technicalities.

    A former consultant to the National Film and Video Censors Board (NFVCB), Mr. Yinka Ogundaisi, expressed shock when NEXIM unveiled Abulu as the first beneficiary of the scheme. He said: “I myself had issue with the same NEXIM when, to the consternation of all of us, it announced the support to fund the film, Doctor Bello by Tony Abulu.”

    Ogundaisi said he later discovered that NEXIM had its valid reasons for picking the Abulu project, adding: “Despite the misgivings, we should at least praise Dr. Roberts Orya for doing something rather than sitting on the fence”.

    He added: “NEXIM’s core mandate is to promote indigenous products for export. The epidemic level of piracy now tormenting Nigerian movies has made it suicidal for any fund provider, especially a bank, to commit their funds into either its production or distribution.

    “Yet, NEXIM must find a way to achieve its core mandate, which was why the bank decided that if there is no indigenous Nigerian movie that can be safely promoted for export, they might as well create one as a model, hence their funding support for Tony Abulu’s film meant for distribution offshore. But all the same, a Nigerian product that NEXIM can associate with and tout as the evidence of achieving their mandate.”

     

    Why it is difficult to access the fund

     

    NEXIM Bank’s Managing Director Roberts Orya said most Nollywood filmmakers could not access the fund because they lack auditable business structures. He said although the mandate of the bank is to generate inclusive growth, the project remains a loan scheme, which must yield returns.

    According to him, the total interest to be charged on any loan facility granted under the scheme is within the single digit. These are charged on the basis of tenor and assessed risks which include 7.0 per cent – 7.5 per cent (under two years); 7.5 per cent – 8.5 per cent (between two years and five years); and 8.5 per cent – 9.0 per cent (between five years and 10 years).

    Orya said the question of why Abulu should be the first beneficiary is a mere sentiment that does not go well with business.

    He said: “Any company in Nigeria can benefit from the facility, provided it is legally registered and incorporated in the country; operates in the entertainment and creative industry; not owned by government (federal, state or local); and it is not an oligarchy business interest that may interfere with content policy for its own interests.”

    He noted that there is a gross violation of intellectual property rights, resulting from ineffective Intellectual Property laws. He highlighted other challenges, which include low production for theatrical releases and cross-border co-production arrangements; lack of adequate digital production and distribution infrastructure to exploit the new media and digital distribution platform; inefficient andunstructured distribution marketing outlets both domestically and internationally; poor corporate structure and book-keeping culture; and inadequate exhibition and theatrical infrastructure, which, he said, is 0.36 screens per million populations.

    Nigeria has less than 60 modern screens in multiplexes, located in five cities, compared to India’s over 13,000 screens translating to 12 screens per million people.

    “This is partly to address the historical reluctance of commercial banks to engage the segment by showing that FGN credits, properly channelled to the segment, can be serviced and repaid thus hopefully setting a precedent that banks will directly adopt as their liquidity positions improve,” he said.

    Ogundaisi described as worrisome thatmany players in the industry cannot develop viable proposals, a development blames for their inability to access the fund.

    Unlike Balogun, he sees nothing wrong in artistes writing proposals. He said: “All they (NEXIM) require is a viable business proposal. Now, this is a challenge that I believe we should focus our attention on for now. I am aware that proposals on infrastructural development which require their funding support is already with them to study and react to.

    “I would suggest we allow the next few weeks to indicate whether Dr. Orya’s public pronouncements to support all viable business proposals in our creative and entertainment industry are for real or just another way of politicking.”

    Significantly, NEXIM, a co-manager of the fund which also has the Bank of Industry (BoI) holding the domestic investment edge, said it is committed to helping the growth of the industry. It said more movie makers would benefit from the revolving loan. Orya said the fund represents a significant commitment by the government to the creative segment of the economy. Besides, partnering with the beneficiaries would not only attract a broader international market, but also put to rest, insinuations that the fund is open to box office heavy weights.