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  • Task ahead of 9mobile’s new owners

    After a long process, Teleology Holdings Limited has emerged the preferred bidder for 9mobile. It has since paid the non-refundable completion deposit of $50 million for the transaction. This is a major development in the quest to sell the telco. But, it is not over yet for Teleology.  LUCAS AJANAKU writes that the new owners have a task to inject life into the telco.

    IT is no longer news that 9mobile has a new manager. What is news is the expectation of what becomes of Nigeria’s fourth largest carrier in the hands of Messrs Teleology Holddings Limited – the winner in the bid process to sell the troubled mobile telecommunication firm.

    The emergence of Teleology as the preferred bidder is a dream comes through for its promoter Adrian Wood, who was MTN Nigeria’s pioneer Chief Executive Officer (CEO)

    Six months after superintending over the first call on the global system for mobile communication (GSM), Wood confirmed that business had been good for the South African firm.

    It was believed in the sector that MTN, which paid $285 million for one of four GSM licenses in Nigeria in January 2001, hit profitability less than one year after it launched its operations in the country.

    Genesis of the crises

    Determined to boost its infrastructure in the ultra-competitive telecoms market that has MTN, Globacom and Airtel as competitors, Etisalat Nigeria approached a consortium of local lenders and got a $1.2 billion medium-term seven-year facility.

    The repayment modality for the facility was not in the public space until the economic downturn of 2015 which led to sharp devaluations of the naira, a trend that negatively impacted the value of the dollar-denominated loan. The situation was aggravated by a Central Bank of Nigeria (CBN) policy, which restricted access to foreign exchange.

    That policy forced many firms to abruptly closed shops.

    According to the telco, the outstanding loan to the consortium stood at $227 million and N113 billion, a total of about $574 million if the naira portion is converted to United States (U.S) dollars. By implication, almost half of the original loan of $1.2 billion has been repaid.

    Repayment glitches

    Etisalat continued to service the loan until February last year, when discussions began with the banks on how to restructure the repayment. The telco added that the $1.2 billion loan was efficiently serviced until the early days of this year.

    The firm’s engagements to renegotiate the terms of the loan went on for a while and were yet to be finalised, though at an advanced stage.

    Some of the options being considered included a restructuring of the shareholding/change in ownership. Final arrangements regarding ownership and board structure are still in development stage.

    Sequel to the negotiation, Etisalat Group had informed the Abu Dhabi Stock Exchange of its intention to transfer its shares in the company to an appointed security trustee of the banks.

    The trustee is the vehicle employed by the banks to hold the shares on behalf of the consortium.

    What has effectively happened is a ‘change in ownership’, and not a receivership, bankruptcy or winding up, so, operations will continue to run and subscribers can continue to access services on the network as usual, the firm had assured.

    Banks root for investigation

    Sensing foul play, the banks urged the Federal Government to investigate the telco over the management of the loan.

    But the telco denied being under any investigation by the Economic and Financial Crimes Commission (EFCC), over an alleged petition to “the Federal Government asking that Etisalat be investigated” on how the funds from the syndicated loans were utilised.

    Ibrahim Dikko, its former Vice President, Regulatory & Corporate Affairs, in a statement, had said: “Etisalat wishes to categorically affirm for the avoidance of doubt that the reports are patently false and most unfortunate, considering the damage such misleading information can have on not only our business, but on the telecommunications industry and the country as a whole.

    “A simple interrogation of the rigorous process for securing a syndicated loan from a consortium of reputable banks would have exposed the truth to the original writer of this story and other media channels who have subsequently re-circulated the falsehood without interrogation or verification.

    “Concerned parties have access to our books and do not require an investigation into how the loan sum was utilised. All of the infrastructure investment and services for which the loan was secured.

    “Contrary to the widely reported misrepresentations about Etisalat Nigeria’s debt obligation to the consortium of 13 banks, it has become pertinent to set the records straight. Prior to this time, Etisalat had in fact consistently and conscientiously met up with its payment obligations.

    “As at today, we can categorically state that the outstanding loan to the consortium stands at $227 million and N113 billion (a total of about $574 million if the naira portion is converted to U.S. dollars).

    “This in essence means almost half of the original loan of $1.2 billion, has been repaid. Etisalat continued to service the loan up until February 2017, when discussions with the banks regarding the repayment restructuring commenced.”

    CBN, NCC to the rescue

    The CBN and the NCC had moved in as regulators ensure that the loan deal was brought to a peaceful closure.

    Their intervention was designed to save over Etisatat’s 4,000 workers, avert asset stripping and maintain the stability of the sector in the eyes of foreign direct investors (FDIs).

    CBN’s spokesman Isaac Okorafor said in a statement: “Although it should ordinarily not be the role of a regulator to decide how individual bad loans are resolved, the CBN believes that Etisalat is a systemically important telecommunications company with over 20 million subscribers that if not well handled, may have negative implications for the banking system itself.”

    He said the banks might go ahead to downsize the company’s over 4,000 workers without the egulators’s intervention.

    Regulatory caveat

     The NCC had said its attention had been drawn to a planned takeover of Etisalat by a consortium of banks. Its Public Affairs Director Tony Ojobo said in a statement: “As a result of this planned action the Commission stated that it is aware of the indebtedness of Etisalat to the consortium of banks; in conjunction with the CBN, it had mediated by holding several meetings with the banks, Etisalat and other stakeholders with a view to finding a resolution. It lamented that these meetings did not yield the desired results.

    “The NCC wishes to reassure the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat.

    “The Commission has taken proactive steps to cushion the impact of any takeover, this is without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement.

    “In view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised.

    “Accordingly, the Commission has drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38:

    “Sub-section 1 – The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;

    “Sub-section 2 – A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.”

    The regulator assured subscribers that they will continue to enjoy the services provided by Etisalat for as long as it takes   the banks and the firm to resolve the issues.

    From Etisalat to 9mobile

    Emerging Markets Telecommunication Services Ltd. (EMTS), trading as Etisalat Nigeria later gave notice of the withdrawal of the brand name in the country while the board management, led by Hakeem Bello and Mathieu Wilshere stepped aside.

    That development changed Etisalat to 9mobile and the subsequent appointment of Barclays Africa as advisors to the telco. Its CEO Boye Olusanya, said the brand name change will not affect the quality of services to customers, adding that all its commitment to CSR will remain. He also said the telco had its windows opened for new investors.

    Reacting to the development, the Association of Telecoms Companies of Nigeria (ATCON) said the development would put more pressure on the new management to find an immediate buyer for the company, as EMTS is effectively left without a recognisable brand name known in the industry.

    Its President, Olusola Teniola, spoke of the need to ensure that the services and products that EMTS delivers can replicate that unique experience.

    Teniola said: “The Etisalat brand name holds significant intangible assets to EMTS and this allowed the current subscriber base to hold faith with the international experience and good will that the Emirates brought to Nigeria.

    “It would be best for the new management to learn from the lessons already learnt from the various name changes that Econet went through to get to Airtel and ATCON seeks minimum impact on the subscribers if those lessons come to bear during this difficult period of transition for the company EMTS and the stakeholders in the industry, most especially the consumers.

    “Proactive effective messaging from EMTS is key to the success of any brand name change and to remove the uncertainty that surrounds any identify change. From customer care right, through to technical support, it is important that infrastructure that supports the company is reliably run and in place to cope with the deluge of calls requesting information on ‘what next’ for the subscribers. Remember the ‘Customer is King’ in this situation,” Teniola said in an email message note to The Nation

    Teniola who is the former CEO of  IS Internet Services and now Client Partner for Detecon International, a subsidiary of Deutsch Telekom Group, Germany, said ATCON had predicted the development, adding that other carriers must learn one or two lessons.

    He said: “We in ATCON predicted this outcome and need to see the precedent that this sets for the rest of the industry, in particular in the way and manner funds are used to deploy capital intensive infrastructure.

    “The relationship with the banks and our members need to reflect the current reality in this harsh business environment and it is best for all stakeholders to work together to find a permanent solution to the ‘funding gap’ that exists in the manner and way the industry attracts FDI or utilises debt to realise its ambition.”

     The bidders

    NCC’s Executive Vice Chairman Prof Danbatta said five firms had emerged as bidders for 9mobile. He listed the telcos as Globacom, Airtel, Smile Communications, Helios, and Teleology Holdings Limited.

    Initially, about 16 firms expressed interest and filed bids with Barclays of Africa, 9mobile’s financial advisor. They include MTN, ntel, Virgin Mobile from the United Kingdom and Vodacom of South Africa. Others are BUA Group, Morning Side Capital Partners, Obot Etiebet & Co, Blackstone Private Equity, and Hamilton and George International Limited.

    Dambatta said: “Five bidders have emerged for 9mobile. They have been allowed to access the data room of 9mobile in order to enable them access the financial situation of the company and subsequently make bids for the takeover of the company. But the takeover must be in a regulated manner.

    “The CBN and NCC are supervising what is going on through an interim board jointly appointed by the NCC and CBN. We are going to do due diligence on the financial capacity of any potential bidder as well as the technical capacity.

    “In the final analysis, we will like to see a 9mobile taken over by a bidder who has the financial and technical capacity to improve on the operations of the telco and add value in the delivery of qualitative telecom services in the country.”

    Judicial intervention

    The Federal High Court in Lagos nullified the appointment of an interim board for 9mobile. Justice Ibrahim Buba made the order based on an application by Spectrum Wireless Communication Ltd, which invested $35 million in 2009 in Emerging Markets Telecommunications Service (EMTS)/Etisalat, the fourth largest telecommunications service operator in Nigeria.

    According to the certified copies of the judgment endorsed by Alokpesi CN, registrar, the judge ruled: “An order is hereby granted discharging the ex-parte order made by this court in this suit in favour of the respondent on the 3rd day of July 2017.

    “The order made pursuant to motion ex-parte dated 3rd day of July 2017 was a nullity, made without jurisdiction and obtained by misrepresentation of facts. Same be and is hereby discharged and vacated as prayed.

    “The motion for stay is struck out, having set aside the order. The respondent shall reverse all steps taken by it since the order was a nullity.”

    The order nullified the appointment of Dr. Joseph Nnana of the CBN as chairman, Boye Olusanya as Managing Director, Mrs Funke Ighodaro as Chief Financial Officer, Seyi Bickersthet and Mr Ken Igbokwe on the EMTS board.

    The nullification followed Justice Buba’s dismissal of a preliminary objection filed by United Capital Trustees Ltd in response to the application by Spectrum Wireless, a shareholder of EMTS.

    United Capital comprises a consortium of local banks that provided funding for Etisalat.

    Spectrum Wireless claimed that the order was obtained through the misrepresentation of facts that alienated its interests in the company.

    The interim board of EMTS, which enjoyed the CBN and NCC support, received bids from the five bidders in its intended sale of the company, which would have been concluded by December 31, last year, but was moved to January 16.

    Spectrum Wireless Communication’s lawyers warned that any institution or company who transacts business for the purpose of sale or acquisition of EMTS or 9mobile does so at his or her own risk.

    Following the exit of Etisalat and its directors in June 2017 from EMTS, United Capital obtained the ex-parte order of July 3, 2017, to appoint a transitional board to superintend over the company’s affairs.

    The transitional board rebranded the company 9mobile and announced a bid for its sale to interested investors. Concerned that United Capital’s action did not consider their stake in EMTS, other non-bank investors in EMTS, led by Spectrum Wireless, challenged in December last year, the ex-parte order granted United Capital.

    Justice Buba nullified the order approved for the board’s appointment on the grounds that it was granted based on misrepresentation of facts.

    Spectrum Wireless accused the NCC of not taking the interest of non-bank investors in the telco into consideration before deciding to put it on sale.

    The firm which owns 17.5 per cent shares in the firm, said its interest and that of two others, were not taken care of in the process leading to offering the telco for sale.

    Specifically, solicitors to Spectrum Wireless, J.A. Achimugu & Co and Dr R. O. Atabo & Co, all Kaduna based, lamented that its client invested $35 million in Etisalat since 2009, adding that no profit was declared.

    Dr. Reuben Atabo of Dr. R O Atabo & Co, who spoke in a telephone interview, said several letters were written to the regulator with a view to notifying it of the need for all shareholders in the telco to be carried along, lamenting however that nothing was done.

    According to Dr Atabo, his clients and about two others invested $100 million in Etisalat for building of infrastructure, lamenting however that when the telco went to raise loan from a consortium of local lenders, they (shareholders) were not informed.

    Bid submission, result

    Airtel pulled out of 9mobile bid. Globacom and Helios Investment Partners, LLP submitted bids but failed to attach any cash for the troubled telco to Barclays Africa.

    Teleology Holdings Limited submitted a bid in excess of $500 million while Smile Telecoms Holdings quoted close to $300 million.

    Effectively, only two companies made financial offers by the January 16 deadline. Going by the financial bid submitted by the two firms, Teleology Holdings Limited natural emerged the preferred bidder and Smile Telecoms the reserved bidder.

    Airtel, Smile kick

    Airtel’s U-turn came as a surprise to industry experts who had expected the company to push all the way through in order to become the largest operator in the land.

    It would have automatically grown from being number three to number one by increasing its subscribers to 52 million for voice and 33.5 million for internet if it had emerged the preferred bidder.

    Airtel allegedly decided to pull out because “many things are not too plain with the entire process”.

    “Airtel is not interested in 9mobile because it sees little value in the company,” a source revealed.

    Another source said the Indian carrier did not have sufficient information to make an informed bid.

    “Airtel believes too many things are hidden about the health of 9mobile, and that it is too risky for anyone to buy the company. Things became compounded with the court case by Spectrum Wireless. Remember the Strive Masiyiwa case over the ownership of Econet which hurt the company for a long time,” an insider said.

    Spectrum Wireless, a shareholder of Emerging Markets Telecommunications Service (EMTS) — which owns the 9mobile licence — went to court against United Capital Trustees Limited — representatives of the debtors — in order to stop the constitution of an interim board for 9mobile after the take-over in July 2017.

    Although it lost the case, the Federal High Court later nullified the ex parte order, and United Securities has now gone on appeal.

    Smile Telecoms Holdings Limited decried the tardy manner in which Barclays Africa handled the sale of 9mobile. It called for a process review to uphold transparency.  Smile wrote a letter addressed to Barclays Africa dated February 21, 2018 and signed by Templars; the company’s solicitors.

    Smile expressed surprise and disappointment at the manner in which the selection process for the Preferred Bidder and Reserve Bidder was conducted.  Of particular concern, to Smile, was the fact that the selection of the preferred bidder was announced before the stated deadline of February 26, 2018 as set out in the process letter.

    The company urged Barclays, to as a matter of fairness and urgency, provide a practicable, with verifiable (and preferably third-party authenticated) proof that the party that has been selected as the preferred bidder has indeed satisfied all the conditions precedent to that selection.

    However, in its reply of February 26, Barclays Africa promised to “be in touch with Smile to discuss any updates on the transaction, to the extent considered necessary”.  It expressed gratitude for Smile’s continued interest in the transaction but noted that its clients exercised their rights at their sole discretion to pursue an alternative path to completion of the transaction.

    Barclays restated its willingness to explore transaction completion with Smile should the pending process not reach a satisfactory conclusion.

    Smile argued that Barclays Africa’s letter evaded the critical issues of due process and eligibility of the announced preferred bidder, wondering if the preferred bidder was able to meet the laid down requirements for the transactions that required it to reach agreement on any required financial accommodations with the syndicate lenders and the trade creditors.  The requirement also entails the preferred bidder to have firm, unconditional and committed funding for any cash payments and to provide a binding offer that is unconditional, excluding the formal licence approvals.

    It’s not yet over

    It would be recalled that the NCC has reassured that only investors with the required technical expertise and financial muscle will buy 9mobile.

    Ojobo said in a statement that the Commission will ensure that all relevant statutory and regulatory processes are duly complied with in the process leading up to the emergence of new owners for the company.

    NCC’s intervention came on the heels of news that Teleology Holding has emerged the preferred bidder for 9mobile.  The announcement was greeted with protests in some quarters. A non-governmental organisation, Business Renaissance Group (BRG), protested against the process, accusing Barclays Africa of sending the letter to Teleology in a hasty and preemptive manner.

    The group stated that Barclays Africa jumped the gun in announcing a preferred bidder.  It noted that in a meeting held with the interested bidders on January 26, 2018, Barclays gave the two finalists in the bid process: Teleology Holdings and Smile Telecoms Holdings the opportunity to increase their bid for 9mobile within 30 days which brought the deadline date to February 26, 2018.

    The group wondered why Barclays could not wait till the agreed date before its preemptive announcement of a winner. Alleging bias against Barclays in the handling of the 9mobile sale, BRG recalled that Barclays had earlier affirmed that any preferred bidder on selection will need to sign a Sales Purchase Agreement (SPA) immediately and will have to instantly pay a non-refundable deposit of $50 million.

    It decried a situation where Barclays has now given its preferred bidder 21 working days to pay the non-refundable fee of $50 million.  The group further underscored its allegation of a less than transparent handling of the entire bid process by Barclays Africa by recalling that some of the earlier entrants, among them two major GSM network operators, had opted out of the process, alluding to lack of transparency.

    It also claimed that at least, two major vendors of 9mobile rejected the financial offers of the preferred bidder and had no confidence in the weak and unrealistic business plan it presented.

    The group wondered how such a bidder with questionable business plan would be able to sustain and improve the operations of 9mobile. BRG contended that the precipitated announcement by Barclays is indicative that the preferred bidder did not satisfy any of the precedent conditions.

  • Better days ahead, says Lawmaker

    Better days ahead, says Lawmaker

    A member of the Lagos state House of Assembly representing Shomolu Constituency 2, Hon. Rotimi Abiru has appealed to Nigerians to be patient with the administration of President Muhammadu Buhari in efforts to take the country out of economic recession.

    The Lawmaker, who spoke with reporters in Lagos was reacting to protests organised in Lagos and Abuja.

    Abiru said: “There’s need for our youths to be patient with this present administration”.

    “The sixteen years of mismanagement of the nation by the Peoples Democratic Party (PDP) led government have caused a serious damages to this nation.” he noted.

    “Where were our youths when the last administration was distributing hard currency to some people like water?”, the lawmaker asked.

    He added: “The future of this nation lies in the hands of our youths, we should all shun sentiment, the wasted resources and damage to  our economy for sixteen years by the PDP led government can’t be corrected within two years of the All Progressive Congress APC led administration”.

    Abiru urged Nigerians to be patient, “as everyone is facing the hardship in the land. But we all must cooperate with  President Mohammed Buhari and pray for him to succeed in  taking the country out of the woods” he urged.

  • Onabanjo varsity and the stormy years ahead

    SIR: The last five years in the history of Olabisi Onabanjo University, (OOU), Ago-Iwoye, Ogun State, have been phenomenal and wonderful. Phenomenal because remarkable achievements have been made in both human and infrastructural development. Wonderful because both staff and students can attest to the serenity of OOU, and are now at ease with learning and welfare. However, these achievements can either be rubbished or incredibly surpassed in the next few years depending on whether right or wrong choices are made especially about who succeeds the outgoing Vice-Chancellor – Professor Saburi Adesanya. Foremost on the minds of most members of the university community is: who comes after the incumbent Vice-Chancellor? The question is crucial at a time like this when the devastating cuts in appropriations as the state struggle to cope with crushing budget deficits. A period of erosion of private support from gifts and endowment income associated with a weak economy. A time of declining state and philanthropic support, and a high  rising expectation for higher education on the part of students and the broader public.

    The era of the incumbent, has shown that much can be achieved where leadership is transparent and affectionate. OOU at a time was the port of call for everyone in terms of schooling and employment. From inception to late 1990s, OOU distinguished itself in teaching and research such that on several occasions many programmes won laurels at national and international levels, its graduates competed favourably all over the world which deepened the respect accorded OOU. Such gains went into the drains when wrong hands took charge and messed up hard-earned successes of the past leaders.  All that changed for better when Prof Saburi Adesanya came into office, and the progress made in that few years is discernible and enviable.

    Of course, he is a different person to different groups of people. To the students, he is a great leader. To the staff unions he is a good manager because strikes have been significantly reduced and welfare of the staff has been prioritised. Whatever opinion formed of him and his administration of OOU, he has become very big factor that can never be wished away for several reasons. He has earned himself a solid place in the history of OOU. In addition, those deserving staff that got awards, grants and scholarships to study abroad would be grateful to his open door management style. Of course, he might not be a saint, he might have stepped on many toes while discharging his statutory duties, however, he remains a relevant personality in educational system of Nigeria.

    The governor and the visitor to OOU, Senator Ibikunle Amosun, should rise above politics and appoint capable hand irrespective of where he or she comes from – either from OOU or other institutions. Someone who is not after office and the benefits accruable to it, but who possesses the ability to translate vision to reality, that can sustain and build on the achievements recorded in the last few years. The governor should avoid bringing in a ‘yes sir’ administrator who lacks the toughness and candidness required to manage myriads of interests at OOU. For OOU to weather the storm of coming years, a good choice in the semblance of the outgoing VC must be hired. We would be fooling ourselves if we think just anyone is good enough for OOU especially at a time when we are witnessing a systematic, careless withdrawal of concern and support for university education in this country

     

    • Tola Osunnuga, Ph.D.

    Ago-Iwoye, Ogun State.

  • Bayelsa: Dickson and the challenges ahead

    Bayelsa: Dickson and the challenges ahead

    Following his victory at the last gubernatorial election in Bayelsa State, as announced by the Independent National Electoral Commission, (INEC) Governor Seriake Dickson of the Peoples Democratic Party (PDP), according to political observers, will have to confront some fresh challenges in administering the oil-rich state, Dare Odufowokan, Assistant Editor, reports.

    The highly controversial 2015 governorship election in Bayelsa State may have finally been concluded following an earlier inconclusive attempt. But going by the submission of pundits and the implications left behind by some developments that occurred before, during and after the violently contested poll, the task of governing the now highly polarized state may not be an easy one for Governor Seriake Dickson, the man who got the nod of the Independent National Electoral Commission (INEC), to continue in office for another term of four years, having polled the highest number of votes in the said election.

    Following the conclusion of the supplementary election held on January 10, 2016, INEC declared Dickson, the incumbent and candidate of the PDP, as the winner of the Bayelsa State governorship election. According to the results, Dickson defeated his closest rival, Timipre Sylva of the All Progressives Congress (APC), to win the election. While Dickson polled 134,998 votes, Sylva got 86,852 votes. The initial election was held on December 5, 2015.

    Dickson, who has been in charge as the governor of the oil-rich state since 2011, earlier served as a member of the House of Representatives, representing Sagbama/Ekeremor Federal Constituency of the state. In the House of Representatives, he served as the Chairman, House Committee on Justice and also a member of several committees.

    According to Yenagoa-based public commentator and lawyer, Fred Ganpate, the electorate has played its part and has now thrown a challenge to those it defied threats and bad weather in some places to vote for. He said it is now very important for the re-elected governor to fulfill his campaign promises.

    “However, Dickson will have to brace himself for some challenges emanating from the current situation of things in the state. There is no doubt that the people of the state will expect a lot of things from him and quickly too. Given the fact that the people had a variety of options to choose from the last time, the expectation from the man who eventually won is enormous,” he said.

    Gampate cited the dwindling revenue of the state, growing insecurity, youth unemployment and a widely polarized citizenry as some of the challenges currently confronting the re-elected governor. And according to him, “Bayelsans would expect him to hit the ground running in finding solutions to these issues as soon as possible.”

    Dwindling revenue

    In the run up to the last gubernatorial election, Dickson has expressed deep concern over the steady decline in the revenues accruing to the state from the Federation Accounts Allocation Committee (FAAC). He explained that the decline was evident in the less than one billion naira shortfall in the revenue received by the state between August and September, 2015.

    It was a visibly worried Dickson that disclosed that the state received only N5.2 billion for September 2015. He also disclosed that the state received N6.2 billion in the month of August and that the amount from the previous month had dropped to N5.6 billion occasioned by the sharp reduction in prices of crude oil in the international market.

    “You can imagine what would have happened, if we didn’t experience this drastic and sudden drop in our revenue, Bayelsa would have been something else. But we are still not despondent. We are hopeful that by the grace of God, revenues will improve and we will again work together to take our state to the next level,” Dickson said.

    With the FAAC allocation now further dwindled, and given the yearnings of the people of the state for more development as exemplified in their demands from candidates during the last election, pundits say Dickson will have to set about improving the Internally Generated Revenue (IGR) base of his state.

    Former spokesperson of the Democratic Peoples Alliance (DPA) in the state, Comrade John Duokpolor, said it is now expedient for the governor to stop giving the people the usual excuse of dwindling allocation and find a way of increasing the financial situation of the state so as to be able to give the people the much needed dividends of democracy.

    “As we speak, oil price has crashed from $104 to $38 per barrel. Possibly, it might still crash further with Iran back in the loop and America dangling Shell oil and Shell Gas. So, we must understand that it is not helpful to rely solely on the federal revenue. Internally Generated Revenue (IGR) must be looked into.

    This is not a time for Governor Dickson to cry over dwindling allocation. It is time to generate revenue and meet the needs of the people who voted for him. His re-election amidst so much rancor, controversy and uncertainty places upon him a very serious burden of expectations and duty, and there is no way the people will be satisfied with excuses this time around,” he said.

    To Gampate, the government may have to put on its thinking cap and find ways of getting citizens in the informal sector to contribute to the revenue base of the state as a way of improving the IGR accruable to it.  “The place to look into is the informal sector. That is the sector that is actually untapped and having the capacity to help the state at a time like this. What is accruable from the sector is huge. It is just that nobody is paying attention to it now.

    “But unlike the formal sector, you cannot get anything out of it unless you first encourage the people therein. And the easiest way to encourage the informal sector to keep on paying is to make them feel the impact of your government, because if you go back to collect from them again, they will ask you what you did with the ones they’ve paid; that is usually their response.

    “If you want them to keep paying without blinking an eyelid, just provide amenities for them. Within their locality, fix roads, give them water, if they have problems with getting water to flow from their taps, send them tankers to drop water for them; let them feel the impact of the government. Once these are done, they will pay,” he said.

    Insecurity

    Another challenge Dickson is currently confronted with is insecurity. Headlined by the rising spate of kidnapping and other violent acts, as well as the recent abduction of a serving commissioner and the younger sister of the governor, many residents of the state are calling on the governor to secure lives and properties at all cost.

    Observers are blaming the return of insecurity in the state on the high spate of thuggery and other violent activities associated with the last governorship election in the state. “The last election, in terms of criminal activities, remains the worst in the history of the state. My major fear is that unless these politicians find a way of disarming those they armed during that period, the state may be in for a terrible time,” Duokpolor cautioned.

    Recently, the APC charged Governor Seriake Dickson to brace up to the security challenges instead of blaming it on the opposition. The party urged the governor to live up to the expectation of the people of Bayelsa by performing his most basic responsibility of ensuring the security of lives and property in the state.

    A statement by its spokesman, Nathan Egba, said the party is worried about the increasing rate of violent crime, including kidnappings across the state. The APC called on the security agencies in the state to step up their intelligence and track down all criminal elements within the state.

    The New Bayelsa Movement, a non-political pressure group, last weekend, raised the alarm over growing threats to life and property in some parts of the state. The group called on the governor to urgently confront the threat before more lives are lost to kidnappers, armed robbers and other criminal elements in the state.

    In a statement by its President, Titus Ezonfade, and Secretary, Meg Tamunomiebi , the group maintained that it had watched with dismay the increasing number of lives lost to hoodlums every day in the oil-rich state.

    Already, the governor has revealed that his administration had finalized plans to unfold a comprehensive security framework to address the current trend of insecurity across the state. Dickson recently warned that anybody found culpable will be dealt with in accordance with the criminal laws of the state and the country.

    He called on youths in the state not to allow themselves to be used under whatever guise to perpetrate any crime, warning that no one would be spared when caught. Dickson enjoined the people of the state to go about their legitimate duties without any fear of molestation, assuring that security agencies had been put on red alert to track down criminals and their cohorts.

    Fence mending

    Another urgent task before Dickson, according to political analysts, is the need for him to supervise the mending of political fences across the state so as to reduce the widespread division and sectionalization occasioned by the tense politicking experienced in the state during the last governorship election.

    Already, political analysts have commended the governor-elect for extending an olive branch to his opponents in the contest. Upon his victory, Dickson called on those who contested with him but lost to come forward with their programmes and policies and support his administration to move the state forward. With this singular action, many are hoping that in no distance time, the political divides within the state will close ranks and allow peace to reign.

    But Gampate would want to believe that the decision of the opposition APC and its candidate to contest the result of the election at the tribunal may delay the healing of political wounds. “I want to believe that given how tense the contest was, with the battle now moving to the tribunal, the worst is not over yet,” he said.

    Following the declaration of Dickson as the winner of the election, the APC candidate, Chief Timipre Sylva, vowed to challenge what he described as the procured victory of the PDP in court. According to him, the INEC Resident Electoral Commissioner (REC), Mr. Baritor Kpagir, deliberately set up machinery to ensure the return of the PDP candidate and incumbent Dickson.

  • Real estate: The challenges ahead

    Real estate: The challenges ahead

    The real estate sector is estimated to hit  $13.6 billion this year, accounting for 7.6 per cent of the gross domestic product. This may be good news for investors, but experts are calling for caution, writes MUYIWA LUCAS

    Renowned accounting and auditing firm, Pricewater-houseCoopers, is usually not known for getting its economic predictions wrong, though with slight variations in some instances usually caused by unforeseen fluctuations in micro and macro economic policies.

    And so, when the firm made its report public that the country’s real estate industry would be valued at $13.65 billion this year, compared to the $9.16bn in 2014, accounting for 7.6 per cent of the country’s Gross Domestic Product, (GDP), it obviously sent  investors and realtors leaping for joy.

    Now, in spite of the sharp downturn in the economy, especially with the naira’s free fall against international currencies, including the fast declining international crude oil price, stakeholders and experts in the real estate industry are still of the opinion that the sector will remain buoyant and full of activities this year.

    But there is a caveat to this: realtors and investors have to be very discerning in their choice, or areas of investment because the sector will respond to both negative and positive economic indices.

    Director, Real Estate Advisory, North Court Real Estate, Tayo Odunsi, agreed that the outlook for the real estate market this year will be largely dependent on the overall performance of the economy as the demand, supply and price of space is contingent on the well-being of occupiers, developers and investors.

    Similarly, the Senior Manager, Real Estate Finance, Stanbic IBTC, Mr. Tola Akinhanmi, at a real estate conference, brought to the fore the need to take purposeful decision in real estate investment this year. For instance, he said there has been growing interest and focus on investment grade assets within the retail and office segments of the sector, in spite of an increased government interventions and support for the housing sector, such as the World Bank-led housing initiatives, establishment of the Nigerian Mortgage Refinancing Company (NMRC) and relative mortgage accessibility through pension reforms.

    A report by North Court Real Estate, titled: Nigeria real estate market outlook 2016, further corroborates Akinhanmi’s submission. According to the report, the office development segment will experience massive boom, with over 150, 000 square metres of lettable space currently being developed for delivery over the next six months to two years. Of this figure, Lagos, the report says, remains in the front runner in this development, accounting for over 25,000 sqm to be delivered. And while Eko Atlantic City gradually takes shape, Ikoyi area would be the prime office destination; Abuja and other second tier cities will follow.

    Investigations by The Nation revealed that high grade office spaces expected to be completed and drive this projection include but not limited to The Wings, a 27, 000m2-luxury office space being developed by RMB Westport and Oando Plc; Lake Point Towers; Madina Tower; and the 26,000m2 World Trade Centre (WTC) in Abuja. Others are the African Capital Alliance’s 6,670m2 “Alliance Place” in Lagos, being developed at a cost of N165 million, and the 15, 734m2 Heritage Place being developed by Actis.

    “The development pipeline has never been so robust; the office development pipeline is very rich. Never has the nation enjoyed such influx of investment office space available for take-up by third parties as against owner-occupation, which was the norm in the past. The invasion may drive prices down moderately; we also postulate that occupiers may surrender leases in older buildings in preference for new builds, which may be willing to offer competitive prices,” the report said. This postulations may not be incorrect given that some developments, such as the Civic Towers and Landmark Tower, delivered in 2015, though had fairly rapid occupation, they nonetheless where rented at rates less than originally desired due to the economic crunch.

    But Akinhanmi explained that in spite of the economic downturn, there was still a strong market in Nigeria’s real estate. This, he observed, accounted for the sector’s emergence as the sixth largest in the country, accounting for 8.4 per cent of the total Gross Domestic Product in 2014, and further growing by 18.78 per cent in the second quarter of 2015.

    “The real estate sector has in the past five to seven years witnessed increased foreign and domestic investment; entry of foreign developers, investors and service firms; increased joint venture arrangements between local sponsors and financial as well as strategic partners; and development expansion into secondary places, such as Delta, Owerri, Abeokuta, Enugu, Ibadan and Kano, among others,” he said.

    Yet, other stakeholders are of the opinion that the residential sub-sector will always have its own demand requiring that the supply gap needs to be covered. Boye Ajayi, a  consultant, explained that in spite of the economic situation, this sector would still be a high flyer because shelter ranks highly in man’s hierarchy of needs.

    Therefore, Ajayi argues, man’s first priority is to get shelter over his head. He, however, said the sector may not experience high brow residential apartments making waves, but there will still be activities in the sector.

    Indeed, experts said going by the events in the beginning of the year, tougher times loom, yet opportunities for success the subsector still abound. They, therefore, advise that smart real estate ideas, including innovation in designs, local content for production, and construction approach; creative funding; and disciplined focus, should be paramount to any investor in the sub sector this year.

    Furthermore, with a seemingly gloomy future for the economy, Ajayi urged that engaging in any development requires more than ever before, proper analysis, adding that Nigerians and investors  seek experts’ opinion before committing resources to any investment this year.

  • Task ahead not easy, says The New York Times

    Task ahead not easy, says The New York Times

    President-elect Muhammadu Buhari has an arduous task, The New York Times said in an editorial published on-line yesterday.

    In the article entitled: “The giant of Africa votes”, the respected newspaper cited falling oil prices, depletion of the Excess Crude Account (ECA) and corruption as some of the problems the new leader must tackle head on.

    “The price of oil, the resource from which the government draws the bulk of its funding, has fallen sharply, taking Nigeria’s currency and foreign currency reserves with it, and history shows that a culture of corruption is not easily uprooted,” the paper wrote.

    It warned that Nigerians, who voted massively for Buhari, who contested on the platform of the All Progressives Congress (APC) against incumbent President Goodluck Jonathan of the Peoples Democratic Party (PDP), will not take excuses if he failed to meet their aspirations.

    Specifically, it said the APC government will present its scorecard to the electorate in another four years.

    The article reads: “But the president-elect has made clear that he is aware of the challenges before him. More important, the Nigerian electorate, which gave him and his All Progressives Congress party 55 per cent of its vote across geographic, religious and tribal lines, has made clear that it is thoroughly sick of corruption and Boko Haram.

    “Mr. Buhari promises, this time, to abide by the law. Should he be tempted to slide back into his old authoritarian ways, there is another election just four years down the road.”

    The article pointed out that an elected Buhari will be different from Gen. Buhari, who was military Head of State between December 31, 1983 and August 27, 1985.

    The article: “When Muhammadu Buhari last became head of state in Nigeria, it was via a military coup in 1983, when he launched a nasty campaign against ‘indiscipline’ and corruption in his vast African nation that earned him a reputation for brutality and disdain for human rights. Hundreds of politicians and businessmen were convicted by military courts, and minor offenses — like cheating on exams — were enough to send Nigerians to jail. Mr. Buhari was himself overthrown 20 months later, yet now, at age 72, he has returned to rule Nigeria — and, he vows, to continue the war on corruption. The difference is that he has returned through a democratic election.

    “It’s a huge difference. The general election in Nigeria on March 28 was the most competitive ever held in Africa’s most populous country, and if the defeated president, Goodluck Jonathan, peacefully hands power to Mr. Buhari on May 29, it will be the first handover between civilians of different political parties since independence. Given Mr. Jonathan’s gracious concession after his crushing defeat, there is no reason to doubt that this will happen, and every reason to hope that other African states follow the example of the ‘giant of Africa.’

    “Mr. Buhari’s victory was in part due to selective public memory of his earlier rule. To a majority of Nigerian voters, the trim and austere former general increasingly appeared to be the one leader who could stanch the massive loss of wealth to what the World Bank called a ‘deeply embedded culture of corruption,’ and who could rebuild the army into a force capable of taking on the militant Islamist group Boko Haram, which has spread terror and death for almost six years now through northeastern Nigeria. The outgoing government had claimed some success against Boko Haram, but that was achieved only by hiring South African mercenaries.”

  • ‘Women are ready to forge ahead no matter the challenges’

    ‘Women are ready to forge ahead no matter the challenges’

    Erelu Angela Adebayo is a woman of many parts. The former first lady of Ekiti State is the new chairman of WEMABOD and the first woman to ever hold the position since its inception. In this interview with Yetunde Oladeinde, she talks about turning the organisation around positively, her passion for children and helping female entrepreneurs to access credit, amongst other issues.

    What does the appointment as chairman of WEMABOD mean to you?

    I would say that the appointment is exciting and I look forward to working and making a difference. WEMABOD represents the five Southwestern states and all the assets of the Southwest were managed and are still being managed by WEMABOD, apart from Lagos State. We have never had a woman in this position. So, it is a challenge for a woman to come in now and I am looking forward to it and promise to give it my best during my tenure.

    For a lot of women entrepreneurs, accessing credit facilities from banks and the related organisations is usually a problem. How can they break this barrier?

    That is another area that I am very passionate about. I am also on the advisory board of the Dangote Foundation and this has been a great opportunity to work and network with women. We have been working with the Bank of Industry (BoI) and they have a number of facilities in this regard, giving women access to credit for their businesses. The foundation itself has micro credit facilities for these women whose businesses usually fall under the category of small and medium scale enterprises.

    How would you assess the performance of women in business?

    They are amazing; they are really amazing especially when you see the products that they are churning out. Our women are working hard in spite of the fact that the environment in which they are working is hostile. Recently, I watched a documentary by the Americans showing the challenges for American women and the fact that they are underrepresented in spite of the facilities that they have. Interestingly, that is not the case in Nigeria; the women are ready to forge ahead no matter the challenges that they are faced with.

    As a first lady, you had some projects that you were passionate about. Are you still monitoring and maintaining these projects?

    Yes, I am. The project that is dear to my heart is my children’s home. During my tenure as first lady, I put in my best and I am happy about the impact that it had on the society as well as having to touch the lives of these children for the better. The home, happily, is still on ground and the government runs it and I am the patron. It is actually doing very well and a lot of other beneficiaries are there.

    Apart from the new appointment, are you thinking of contesting for elective office soon?

    I have always said that I am not a politician. I am a wife of a politician. I give my husband due respect, but if there are opportunities for me to serve in anyway and he gives me the permission, then I would work.

    What were some of the memorable moments for you as a first lady?

    There were so many and the list would include running the children’s home, my family and my touching lives. I remember the day we went to collect the children from the hospital that the doctors were on strike and we just went there to pick this lucky children, about 18 of them. That, for me, was my first memorable moment as the first lady.

    Of course, there were so many others and there are so many other things which are commonplace that really mattered to me. For me, the important thing in life is to make a difference and touch lives. I always tell others that the areas that are a challenge to others, we should help to change and transform lives. I am a Christian and I live a life that should be emulated by others.

    Do you have a mentoring programme for young ladies and women?

    Yes, I like to help young woman and teach them how to pick up their life in the right direction. Most of the programmes that I organise are educational projects. It gives the foundation, and once you have the right foundation, you can then begin to build on it to get a better future. Unfortunately, if the foundation is not right, then you just cannot go far. I also try to work on their skills and there are programmes that are entrepreneurial in focus.

    It is over a hundred days that the Chibok girls have been missing. How do you feel about this?

    First of all, I am bothered. It is really sad and words cannot totally explain the feeling. We have to pray because there is nothing God cannot do. The women and the NGOs that have been protesting have done so much and with prayers I believe that things would definitely get better.

    If you had to advise Nigerian women, what would you tell them?

    They should pray for the nation. It is very important for us to pray persistently to bring about the changes that we all desire.

    Do you think that women in politics are doing well considering the affirmative action and other opportunities available?

    They are working hard, just like the female entrepreneurs. They have the focus but the environment is very hostile. We need to continue to give them our support and encourage them to be at their best.

    Someone is pushing a bill against NGOs, claiming that they got grants from donor agencies to sponsor programmes against our government. What do you think about this?

    There is need for enlightenment about the issue. Some people are ignorant of the facts and they need to get a better insight on the matter. I believe that one person lost to Boko Haram is one too many. We need the cooperation of the women, NGOs, faith-based organisations and everyone to tackle the problem. If we allow it to go further than this, then it would bring a terrible consequence. This actually is not about gender now. Nobody should ignore any terrorist group that comes to Nigeria or any part of the world.

  • APC: The hurdles ahead

    APC: The hurdles ahead

    SIR: The deluge of reactions and comments that have greeted the recent announcement of the merger of the country’s major opposition parties- All Progressive Grand Alliance (APGA), All Nigerian Political Party (ANPP), Action Congress of Nigeria (ACN) and Congress for Progressive Change (CPC)-which has given birth to the mega alliance: All Progressives Congress (APC), are not by any mean surprising. These reactions stemmed from the fact that the electorates are tired of the present “come and chop” political arrangement as symbolised by the ruling Peoples Democratic Party (PDP) at the centre.

    It is a notorious fact that the nation’s 13-year old democracy has been battered and bastardised beyond description by no less persons than our corrupt politicians, who keep amassing stupendous wealth to themselves at the detriment of the larger populace. Indeed, the PDP has largely contributed to these 13 years of misrule and squandering of our collective wealth. Again, there is no gain saying the fact that the so-called dividends of democracy have become as elusive as the thin air. The level of disconnect between the masses and their leaders has never been this glaring since the country’s independence!

    To further aggravate the injuries, the culprit of this hopelessness, the ruling PDP, has severally bragged to remain in the saddle for the next 60 years!

    It is in view of the above gloomy picture that the need for a strong and virile opposition, that will offer a better alternative to the already disillusioned people, has become imperative. It is, therefore, gratifying that the All Progressive Congress (APC) is offering this alternative. However, how the new party is able to do this depends largely on its ability to overcome certain hurdles which have been widely acknowledged as obstacles in our politicking. These “symptoms”, include (1) god-fatherism (2) dearth of internal democracy (3) selfish interest of the leaders, amongst others.

    Reading the comments expressed so far by the leaders of the new party, it does appear they are merely interested in kicking out the Peoples Democratic Party (PDP) from Aso Rock come 2015, not minding what happens thereafter. It will turnout the biggest political mistake the new party would make if, indeed, it is only concentrating all its resources at “grabbing” power at the centre without a corresponding action plan that will salvage the nation’s political and economic miseries. History is replete with such political blunder. This was what happened, in 2002, in Kenya when in their bid to wrestle power from the ruling Kenya African National Union (KANU) at all cost, the politicians formed a merger- National Alliance of Rainbow Coalition (NARC). But because the merger was power-grabbing driven, it was later to suffer internal bickering, few years after winning the election. In other to avoid this mistake, APC must work out a people-oriented action plan that will not just be limited at “capturing” the coveted Aso Rock seat but will add joy and smiles to the populace.

    It needs also be stated here that the new party should make internal democracy its guiding principle. Candidates should be allowed to emerge through a more open democratic process that is devoid of whims and caprices of its leadership.

    It is not in doubt that this initiative will, in the long run, deepen our “nascent” democracy (a fact the leadership of the ruling PDP has magnanimously accepted) to the benefits of the already impoverished masses, the new party must take a step further to convince Nigerians that it is not just going to be business as usual after assuming power.

     

    • Barrister Okoro Gabriel

    Lagos

  • Up ahead: The world according to Gore

    Up ahead: The world according to Gore

    The Future: Six Drivers of Global Change,” the title of Al Gore’s ambitious, drily written new book, sounds like a snoozy think-tank talk. And while it’s about 30 times as long, that’s exactly what this volume is, a wonky overview of the forces that are remaking the world: economic globalization, the digital revolution, climate change, dwindling natural resources, shifts in the global balance of power and advances in the life sciences.

    Because it bites off way more than it can plausibly digest, “The Future” lacks the cogency and focus of Mr. Gore’s previous two books, “An Inconvenient Truth,” his succinct, user-friendly assessment of the dangers of climate change (published in 2006 in conjunction with the movie of the same name), and “The Assault on Reason” (2007), his perspicacious analysis of America’s ailing condition as a participatory democracy.

    Parts of “The Future” dealing with domestic politics, foreign policy and economics retrace ground covered in more persuasive detail by Bill Clinton (“Back to Work: Why We Need Smart Government for a Strong Economy”), Zbigniew Brzezinski (“Strategic Vision: America and the Crisis of Global Power”) and Joseph Stiglitz (“Freefall: America, Free Markets, and the Sinking of the World Economy”).

    Other passages read like updates on Alvin Toffler’s 1970 classic “Future Shock,” which looked at how our culture was being rocked by an avalanche of social and technological changes. And some feel like textbook excerpts, piling one historical aside on top of another, which provides some useful context but more often bogs the book down in survey-course-like digressions. (Remember our hunter-gatherer ancestors or denizens of the Stone and Bronze Ages? They’re mentioned in these pages, as are historical events like the Paris Commune and the Industrial Revolution.)

    The main theme in this volume has to do with Mr. Gore’s conviction that “American democracy has been hacked,” that Congress “is now incapable of passing laws without permission from the corporate lobbies and other special interests that control their campaign finances.” Both parties, he says, have become so dependent on business lobbies for “the large sums of money they must have to purchase television advertisements in order to be re-elected that special interest legislation pushed by the industries most active in purchasing influence — financial services, carbon-based energy companies, pharmaceutical companies and others — can count on large bipartisan majorities.”

    The results, Mr. Gore goes on, can be seen in “the ever increasing inequalities of income and growing concentrations of wealth, and the paralysis of any efforts at reform.” Such paralysis is particularly dangerous, he says, given the challenges facing America today, like declining public education financing (at a time when schools need to adapt “to the tectonic shift in our relationship to the world of knowledge”) and continuing high unemployment (a by-product not only of the 2008 crash, but also of globalization, outsourcing and automation).

    The public’s ability to express its revulsion at this state of affairs, Mr. Gore argues, “is dampened by the structure of our dominant means of mass communication, television, which serves mainly to promote consumption of products and entertain the public, while offering no means for interactive dialogue and collaborative decision making.”

    He also complains that “virtually every news and political commentary program on television is sponsored in part by oil, coal and gas companies — not just during campaign seasons, but all the time, year in and year out — with messages designed to sooth and reassure the audience that everything is fine, the global environment is not threatened, and the carbon companies are working diligently to further develop renewable energy sources.”

    Such remarks serve to remind the reader of a business deal Mr. Gore recently made that has ignited charges of hypocrisy and greed: selling Current TV (a channel he helped to found in 2005) for an estimated $500 million to Al Jazeera, the influential Arab news giant, which is financed by the government of oil- and gas-rich Qatar. Mr. Gore, who will reportedly make about $100 million from the deal, describes Al Jazeera in this book as “feisty and relatively independent.”

     

    Mr. Gore is most convincing in “The Future” when he refrains from editorializing and sticks to analyzing how changes in technology, our political climate and the environment are going to affect the world, often creating domino or cascadelike effects.

    •Culled from New York Times

     

  • AHEAD 2013 AFCON IKE UCHE DEMANDS EARLY PREPARATION

    AHEAD 2013 AFCON IKE UCHE DEMANDS EARLY PREPARATION

    •Super Eagles boss hits Durban for draw

    SPAIN-BASED striker Ikechukwu Uche has said Nigeria will shine at the 2013 Nations Cup if the new team have enough time to prepare.

    Uche has therefore demanded for adequate preparation for the Eagles ahead of the Africa Cup of Nations in South Africa.

    Uche, who has lately averaged a goal-a-game for Nigeria, noted that the present crop of Eagles players needs more time together so as to play as a team.

    “It’s one thing for us to qualify and another for us to have a good showing at the tournament. We need time for early preparation because this is a new team and we need time to understand ourselves very well,” said the Villarreal striker, who came off the bench to score against Liberia in an AFCON qualifier in Calabar.

    “But I am confident that we would have a wonderful tournament in South Africa.”

    Meanwhile, coach Stephen Keshi has arrived South Africa for the AFCON draw.

    The Eagles coach is in Durban, South Africa with team secretary Dayo Enebi and chairman NFF technical committee, Chris Green.

    The officials, according to a top NFF official, “would outside attending the draw touch on other things the team need for a successful outing at the Nations Cup”.

    The AFCON draw will take place on Wednesday night in Durban, South Africa.