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Deji’s stool: Six princes, deposed monarch battle for throne

Six princes of the Osupa ruling house and the deposed Deji of Akure have entered the race to succeed the late paramount ruler of Akure land, Oba Adebiyi Adesida Afunbiowo, who joined his ancestors on December 1, 2013.

The battle for the Deji’s stool is, however, causing crisis among the princes and princesses of Osupa ruling house, whose turn it is to ascend the throne. The royal family has broken into two with different set of leaders, each calling for expression of interest from any of their princes to become the next Deji of Akure.

Following the passing on of Oba Adebiyi Adesida, his first daughter Princess Adetutu Adesida, has been installed as the regent in accordance with tradition a position she would hold until the next Oba is installed.

There are two ruling houses recognised by law that can produce the Deji of Akure – Ojijigogun and Osupa. Late Oba Adebiyi Adesida came from Ojijigogun ruling house, hence the turn of Osupa ruling house to produce the next monarch of Akure land.

Although, the Lisa of Akure Kingdom (Prime Minister), High Chief James Olusoga, in a recent chat with The Nation said succession to the Deji’s stool had not fully started, he stressed that it is the ruling house, whose turn it is to produce the next monarch that has the major responsibility of selection, after which the kingmakers will ratify.

He pointed out that there is no time limit for the regent to be on the throne, saying if it took five weeks or five years for the ruling house concerned to be ready with the list of the contestants to the throne, the kingmakers would wait for them and will only do all other traditional rites including the consultation of Ifa oracle to pick the best from among the princes presented to them.

The Ojijigogun ruling house had dominated the throne for more than 100 years aside the short reign of the deposed Oludare Adesina, between November 2005 to 2010 (five years), who is from the Osupa ruling house. He was accused of assaulting his wife publicly and was dethroned by the state government, though the deposed monarh denied the act.

The six princes jostling for the throne for now are Wole Aladetoyinbo (US-based businessman), Kayode Adegbite (Akure businessman), Oluwole Ogunsuyi (Commissioner in Ondo State Judicial Commission), Femi Adejuyigbe (Akure saw miller), retired Air Commodore Leye Alabi (Lagos Businessman) and Kayode Abewajoye (popular television presenter with OSRC).

However, the deposed Adesina, who is presently in United Kingdom (UK), is also fighting hard to return to the throne.

Already, he had urged the Appeal Court to restrain Akure Kingmakers and the Ondo State government from filling the vacant stool in the ancient town.

Adesina had approached the Court to plead that his case and application for relief which were struck out by an Akure High Court presided over by the Chief Judge of the State, Justice Olasehinde Kumuyi, should be re-listed in the court list.

The respondents in the suit are Governor Olusegun Mimiko, the state Attorney General and Commissioner for Justice, the Commissioner for Local Government and Chieftaincy Affairs, Akure Chiefs and Late Oba Adebiyi Adesida.

Lawyers including Olalekan Ojo, Folorunso Ahmed and Olaniran Oladapo appeared for the Appellant, while F. A. Salami and Kayode Dare appeared for the Respondents.

At the recent session, none of the Appellant and Respondents appeared in person before the court. The absence by the respondents was said to have been prompted by the death of the late Oba Adesida.

Counsel to the chiefs, Kayode Dare pleaded that four of his clients (kingmakers) are dead and therefore nobody could appear for them until the stools are filled with new chiefs.

Earlier, counsel to Adesina had prayed the court to extend the time within which to compile and transmit the record of appeal for proper transmission of the case.

In her ruling, the presiding Judge, Denton West, ruled in favour of the deposed monarch, stressing that the counsel to the parties should choose a date and notify the court.

According to her, the counsels should let the dead be and those alive should move ahead with the case.

She added that the dead could not stop the case from being decided, urging both appellant and respondents to settle with concerned parties in order to restore peace.

Justice West observed that if they should continue to pursue the case, it might take longer than expected especially now that no date has been fixed for hearing and the development might affect the processes for the installation of new Deji.

In the crisis rocking the Osupa ruling house, the former Dr. Adebimpe Ogunleye and his secretary, Adebanjo Adeleye were reportedly removed at one of the royal house’s general meeting held on January 26.

A member of the House, Toyin Aladetoyinbo, in a statement said a new head of the family and the secretary have been appointed and gave the names of Bishop Aladeyeye Aladegbaye and Michael Adeniyan as the new head of the family and sSecretary respectively.

However, it was the sacked Ogunleye’s leadership faction that released the names of the contestants who filled the forms of intent for the vacant stool of Deji of Akure.

But Aladetoyinbo has described Ogunleye’s action as null and void, since its leadership had been removed by the Osupa ruling house.

According to him, any contestant to the Deji’s stool that obtained forms or wrote letter of intent to Ogunleye leadership was doing so at his own risk.

Meanwhile, in an effort to ensure reconciliation within its ranks the ruling house has set up a committee headed by the Olu of Ilu-Abo and former Secretary to the Government of the Federation (SGF), Chief Olu Falae to settle the dispute within the royal house.

Other members of the Committee include former Commissioner for Information in the state, Prince Olu Adegboro, Adeuya Oluwatuyi, Kayode Ajomale, Adebanjo Adeleye and two other personalities.

In a chat with the new secretary of Osupa ruling house, Mr. Adeniyan said the leadership of Bishop Aladeyeye has been approved to run the affairs of the ruling house.

According to him, the ruling house at its meeting in Akure at the weekend sent a letter to Governor Olusegun Mimiko to give a directive to Aladeleye’s leadership to commence various processes leading to the filing of the vacant Deji’s stool.

A source within the Osupa family, who spoke in confidence on the chances of the deposed Adesina returning to the throne he forcefully vacated said this could only be possible if his banishment was lifted by the state government.

Meanwhile, the regent, Princess Adetutu is intensifying efforts to ensure peaceful kingdom while her reign lasted.

March 19, 2014
CANADA 2014: Falconets battle England, Korea Republic, Mexico

The Nigeria Under 20 Women team, the Falconets, have been drawn in Group C, playing at Moncton in New Brunswick, Canada and will face England, Korea Republic and Mexico for the chance to advance to the knock out stages of the tournament.

Host team Canada are drawn to play in Toronto in Group A along with Finland, Korea DPR and Africa’s other representatives, Ghana.

The Group B, playing at Edmonton in the Canadian province of Alberta, will be considered the ‘group of death’ with power houses Germany, USA, Brazil and China all competing for the two qualifying places.

The last collection of teams in Group D playing in Montreal, are New Zealand, Paraguay, France and Costa Rica.

Ghana will face Canada in the opening game of the tournament, while Nigeria will open against Mexico on the 6th of August before facing Korea Republic on the 9th.

They will then move to Edmonton to face England in the final group game on the 13th.

March 3, 2014
Patient needs N3m to battle kidney failure

A spare part dealer, Jochim Iheagwam, who is battling kidney failure, requires N3million to live.

Until his ailment, Iheagwam dealt in spare parts at the Ladipo market in Lagos.

Iheagwam was diagnosed of the ailment in November last year, and since then he has spent his family savings and contributions from St Vincent De Paul Society (St Peter’s Catholic Church Ejigbo in Lagos on weekly dialysis to provide temporary relief for him.

One year after, he told The Nation that life has not been easy.

“Initially it started like mere cough and catarrh, I began to spit a lot and at some point my body was swelling and peeling. I went to many hospitals and had many tests before it was eventually confirmed to be kidney failure. I go for dialysis twice a week. When we started, each session cost N66, 000 before it came down to N35, 000. When we are able to raise the money I keep the appointment at the General hospital at the Island, but sometimes the money will not be complete so I have to wait until we are able to raise enough to take care of one appointment. It has not been easy,” he said

Iheagwam, who described his situation as demoralizing, called on public spirited Nigerians to help him.

“I just want to beg Nigerians to help with anything they can to have my life back. Nothing is too small and I pray God to replenish their purses a hundred fold,” said.

Contributions can sent to Eco Bank account No.2741282441 which is in his name.

December 2, 2013
Owners of DISCOs, GENCOs battle NERC over losses

The owners of the Electricity Distribution Companies (DISCOs) and Generation Companies (GENCOs), yesterday tackled the Nigerian Electricity Regulatory Commission (NERC) over challenges in the power sector that have resulted in financial losses.

NERC had at the meeting in Abuja churned out its expectations from the operators.

But the operators cautioned the Commission to redirect its efforts at tackling the reality in the power sector instead of focussing solely on expectations.

Kano DISCOs’ Chief Executive Officer, Dr. Jamil Gwamna, told NERC that due to abysmal load allocation to the Kano DISCO, which supplies Kano, Jigawa, Katsina States and Republic of Niger, the company has not generated any money from the power entity.

He said: “I have watched the presentation of the last presenter. And my concern is very simple as far as my DISCO is concerned. I have noticed the emphasis on compliance with MYTO II model but actually the reality on ground as far as Kano is concerned, is that all the assumption of the MYTO have been turned upside down. It is not working.

“ I will start with the load allocation to Kano. It is really sad that for the last three days, our allocation was as low as 40mega watts (Mw) covering Kano, Jigawa and Katsina States. And not only that, about 20Mw will go to Niger Republic. So, how on earth can I make money?

November 28, 2013
Jordan vs Nigeria: Keshi expects tough battle

Nigeria coach Stephen Keshi has said he expects Jordan to give his team of local league players a tough match tonight.

Jordan will use today’s friendly to prepare for a 2014 World Cup final playoff against Uruguay.

“Jordan have been together for a while and they play Uruguay in the World Cup playoff, so we are playing a very strong team and it would be a difficult game,” Keshi warned ahead of the first-ever clash between the two countries at this level.

Nigeria will use this match to begin preparations for next year’s Championship of African Nations (CHAN) in South Africa.

Keshi has handed a chance to several newcomers like central midfielder Olayinka Oyeleke of promoted Crown FC to stake a claim for places in his CHAN squad. He said he has been satisfied with the fitness level of the players.

“The performance is okay. They are really pushing hard to be there. It’s not easy, some of them are new and it’s their first time, so I expect the early panic I have seen from them,” he said.

“But in all, I am impressed at their fitness level. We will continue to do our best but it’s just that the time is too short for us to do anything before the Jordan game.”

Nigeria are expected to open training camp for CHAN in December.

They are drawn against hosts South Africa, Mali and Mozambique in the first round of the tournament strictly for players featuring in their various local leagues in Africa.

October 28, 2013
Battle for Oyo exco seats begins

olitical appointment seekers have besieged the homes of prominent leaders of the All Progressives Congress (APC) in Oyo State, following Monday’s dissolution of the State Executive Council.
The party’s Yemetu office in Ibadan, the state capital, was not spared.
It was gathered that many politicians had been keeping vigil at the Bashorun home of a prominent businessman and Ibadan chief.
Acting APC State Chairman Chief Akin Oke said the dissolution of the executive council was to consolidate on the administration’s achievements in the last two years.
Describing the lobby for political appointment as normal, Oke said: “It is a normal thing all over the world, especially when there is a dissolution of a cabinet. Those who feel they can be reconsidered will be lobbying and those who have worked for the party or who are close to some power brokers will also be lobbying. Its a normal thin, especially in a setting like ours.”
He said he was disappointed by some of the sacked appointees, who he said were not loyalty to the government and the party.
Oke said: “Some of these appointees did not know that their appointment demand unalloyed commitment and loyalty to the government and the party.
“ Maybe it was because of their technocrat background, but a political office is not the same as working for a company. They did not know that their appointment demanded absolute commitment and loyalty to the government and the party.
“This is politics and in politics, once you are appointed into a political office, absolute loyalty and commitment are required.”
Oke said the governor and some party leaders will meet today to discuss issues relating to the dissolution.
He said Ajimobi was taking his time to ensure that qualified persons are appointed.

September 25, 2013
Food businesses battle high regulatory costs

Farm businesses are struggling under the growing weight of unnecessary regulatory burden, the Director, Africa Region, Cassava Adding Value to Africa, Dr Kola Adebayo has said. Also, a web of complex regulations which increase costs will limit the food and agric industry’s ability to produce more food, he added.

While acknowledging the need for effective regulation, Adebayo said regulation protects food industry operators, but that it was important that regulation is appropriately targeted, clearly communicated, and that its restrictions are minimised as far as possible to avoid adverse outcomes.

He said there is a range of regulatory requirements across the food sector which are stifling the growth of start ups, saying issues such as registration with the National Agency for Food Drug Administration and Control, is a cost burden to comply with.

He said there is a need to address challenges to competitiveness on farm with increased input prices driving cost of production, adding that the issue becomes compounded when unnecessary regulatory burdens are imposed on industry.

The don urged the government to reduce excessive regulatory coverage; overlap, or inconsistency; unwieldy approval and the licensing processes, saying there are a number of areas where improvements could be made to regulatory processes to ease the burden on the sector. He said it is expected that the government would be working towards a lighter regulatory regime, where possible, to help keep farm businesses profitable.

He stressed that it was in the interest of government to actively pursue red tape reduction as a way of stimulating economic activity and increase government revenues, as well as limit their own costs associated with administering and enforcing regulations. He contended that an improvement in red tape impacts for the food sector was particularly important as it has numerous implications on industry activities.

According to him, farmers have frequently expressed concerns over the approval process involved when looking to change the existing land use function on-farm, in addition to the myriad of local and state governments’ environmental regulations farmers have to comply with daily.

He expressed the need for regulators to be transparent, efficient and consistent in the way they interact with farm businesses, particularly regarding any costs they wish to recover from the sector.

September 20, 2013
Anambra PDP, APC, LP, APGA set for battle

The governorship election will hold in Anambra State on November 16. Correspondent NWANOSIKE ONU writes on the preparations for the poll by the major parties.

IT is four months to the governorship election in Anambra State. Who takes over from Governor Peter Obi next year?

The battle line is drawn among the mega All Progressives Congress (APC), Labour Party (LP), All Progressives Grand Alliance (APGA) andPeoples Democratic Party (PDP).

Two of them-PDP and APGA – are swimming in unending leadership crises

The major contestants for the seat have taken their consultation to the grassroots. They are Dr Ifeanyi Ubah, the only woman in the race, Hon. Uche Ekwunife, representing Anaocha, Njikoka, Dunukofia federal constituency, Sen. Chris Ngige, Dr Tony Nwoye, former President of the National Association of Nigeria Students (NANS), and Dr Chike Obidigbo, the Chairman of Southeast Manufacturers Association of nigeria (MAN).

Also, the former Central Bank of Nigeria (CBN) governor, Prof Chukwuma Soludo, has made his intention known recently in Abuja. Sen. Andy Uba and Prince Nicholas Ukachukwu are still playing hide and sick game.

Already, those whose fliers and posters have taken over the streets of Anambra are over 25, with some of them acting as spoilers for some of the big guns.

But another person who seems to be serious in the governorship project is Sir Godwin Ezeemo, whose philanthropy has endured him to the people.

The secretary to the state government in the state, Mr. Oseloka Obaze, is said to have made his intention known to some stakeholder. But his seriousness may be in doubt.

The aspirants have gone round the 21 local government areas in the state to seek support from the grassroots. Others are displaying the siddon look attitude

Ekwunife, Uba, Ngige, Ezeemo, Obidigbo, Nwoye have made impact on the electorate having traversed the length and breath of this state, appealing to the masses.

The six have been to the 177 communities in Anambra including 327 wards to meet with the traditional rulers, stakeholders and the rural women to seek support.

In APGA, it is going to be a battle royale between Ekwunife, Obidigbo and Obaze, but the former secretary to the state government, Chief Paul Odenigbo is also expected to make up impact.

Many people believe that they have what it takes to govern Anambra State. But the problem they are facing is from the party that has been in leadership crisis onn their party for the past one year.

The factions that exist in the APGA are holding Ekwunife back from visiting the party secretariat in Awka to officially announce her ambition. The woman does not need any introduction in the political scene. But she does not mince words in telling anybody that Chief Victor Umeh is the National Chairman of the party, adding that the problem in the APGA the is a family affair that will end soon.

Obidigbo said that his desire to contest is not motivated by any selfish interest.

He said he has the solution to the social, economic and political problems of the state.

Obidigbo’s reason for choosing to run under APGA is that the party mirrors the Igbo spirit of enterprise and brotherly love.

He said the party is a platform that wakes up the collective determination of every Igbo person to challenge the limitations and persecutions suffered by the group.

Besides Obidigbo and Ekwunife, another person that has strong aspiration is the Capital Oil and Gas mogul, Ifeanyi Ubah, who joined the race over a year ago.

His dilemma has been the crisis in the party. Ubah has visited the Labour Party Office in Awka to make enquires. One of his aides said recently in Awka that the oil magnate has decided to pitch his tent with LP.

The APGA crisis has thrown him off balance as his major backer and supporter, Chief Victor Umeh, is fighting for the leadership of the party.

LP, the Nation gathered, is battle ready for the contest. Some of the gladiators, including Senator Andy Ubah, Oil guru, Ifeanyi Ubah are also holding talks with the party.

The chairman of the party, Hon. Sam Oraegbunam, told reporters that some of the people claiming membership of the party are not card-carrying members.

He said that Labour Party was not a place for buying and selling, adding that the party would not to give its ticket to the highest bidder. He said that the party will give its ticket to a competent candidate who can win the election.

However, the fear of the All Progressives Congress (APC) has become the beginning of wisdom. The three heavyweights in the party are Senator Chris Ngige, Senator Annie Okonkwo and Sir Godwin Ezeemo.

Ezeemo has relied heavily on his philanthropy that has endeared him to the people. Ngige has pedigree and legacies as a former governor. He ruled between 2003 and 2006.

But the surprise package could be the former NANS President, Dr Tony Nwoye of the Peoples Democratic Party (PDP). He is not leaving any stone unturned to get the ticket.

Nwoye is an advocate of open and democratic primaries. He has vowed to resist the imposition of candidates.

Nwoye has visited all the local government areas and some communities to inform them about his willingness to serve them.

He was the backing of the chairman of PDP in the state. The party installed Andy Uba as governor in 2007. But he was deposed by the court.

More aspirants may still join the race before the deadline.

The battle for who succeeds Obi is the focal point now in the state and one of the aspirants from Labour Party, All Progressives Congress (APC), Peoples Democratic party (PDP) and All Progressives Grand Alliance (APGA) is likely to succeed Obi.

July 24, 2013
NIMASA/NLNG’s $140m battle

Court papers and sundry documents shed light on the wrangling between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Liquefied Natural Gas (NLNG) Limited, writes OLUKOREDE YISHAU

The legal tussles did not start this year. But, they were never logically concludeded— for one reason or the other. For six years, the leadership of the Nigerian Maritime Administration and Safety Agency (NIMASA) ‘pursued’ the Nigeria Liquefied Natural Gas (NLNG) Limited for levies, which Africa’s premier LNG company saw no legal basis for.

Last month, after NIMASA blockaded its vessels from taking liquefied gas to its customers overseas, NLNG ran to the court again.

Before that, the Federal Government set up a mediation committee in May, with the Attorney-General of the Federation (AGF) and Minister of Justice Adoke Bello as the panel’s legal adviser. An agreement was reached that NLNG should pay the outstanding levies from September 2009.

Dissatisfied, it paid $20 million in protest and approached the court for a judicial interpretation of the dispute.

On September 19, the court will start a process that will lead to the ‘proper interpretation’ the relevant sections of the enabling laws of both parties.

NIMASA did not just keep quiet after NLNG returned to court in a suit in which NIMASA was not joined as a party. The Nation learnt NIMASA was not joined because its Act says it must be given prior notice before being a party in a suit.

The second blockade by the waterways police led to the NLNG agreeing to pay NIMASA $140 million. It said the payment was in protest. It hoped the court will rule in its favour and the money paid back to it.

The filings in court make interesting reading for anyone interested in the uses and abuses of power, the dilemmas caused by ambiguous laws and the tactics parties have been compelled to employ to outsmart each other. They also show the need for laws not to be written in ambiguous language.

The NLNG/NIMASA saga began in 2007 when the maritime regulator expected NLNG to start paying levies. By NIMASA’s calculation, NLNG’s tax holiday lapsed in 2007. NLNG saw no sense in MIMASA’s claim. As far as it is concerned, the Act setting it up exempts it from NIMASA’s levies. NIMASA says it has always acted in line with its enabling law.

Section 15(a) of the NIMASA Act 2007 stipulates: “The agency shall be funded by monies accruing to the agency from the following sources: 3 per cent of gross freight on all international inbound and outbound cargo from ships or shipping companies operating in Nigeria to be collected and paid over to the agency to meet its operational cost.”

Section 2(2) of the Act states that exemptions are only granted to “war ships and military patrol ships”.

NIMASA says NLNG vessels do not fall within those exempted from the levies and that the tax holiday granted it was time-bound.

The NLNG Act 2004 predates the NIMASA Act 2007. Section 7(7) of the NLNG Act 2004 states: “No export duties, taxes, or other duties, levies, charges, or imposts of a similar nature shall be payable or imposed on the exports of liquefied natural gas or other hydrocarbons produced by the company.”

To add to the confusion, paragraph 3, Schedule 2 of the NLNG Act states: “Neither the company nor its stakeholders shall in any way be subject to new laws, regulations, taxes, duties, imposts or charges of whatever nature which are not applicable generally to companies incorporated in Nigeria.”

Yet, according to NIMASA Act 2007, it has right to collect levies from ships and small ships “registered in Nigeria and also to ships, small ships and crafts flying a foreign flag in the exclusive economic zone, territorial and inland seas, inland waterways and in the ports of the Federal Republic of Nigeria”.

It also collects levies from shipping companies/ship operators, manning agents and seafarers on the government’s behalf. It is with these funds generated that the agency develops and polices the maritime sector. NIMASA does not receive any government allocations, said a source.

The incentives granted NLNG, said NIMASA, are not meant to be in perpetuity. The agency points at Section 2 of the NLNG Act which limits the tax holiday of the company to 10 years or when the cumulative average sales price of the liquefied natural gas reaches $3 in million metric British Thermal Units (MMBTU).

NIMASA said its market intelligence shows that as at January 2004, which was the fifth anniversary of the production of the NLNG, the milestone for the expiration of the exemption period had been surpassed by 200 per cent.

By July 12, when the NLNG agreed to pay to NIMASA, the company said it has lost over N76 billion ($475 million).

In a statement by its General Manager, External Relations Kudo Eresia-Eke, NLNG Managing Director Babs Omotowa said: “We feel we have no other option than to now make these payments under protest. In doing this, we have taken into account the overriding national interest; in particular to stem the huge financial and reputation loss the country has suffered as a reliable LNG supplier, a destination for foreign investment and a nation of the rule of law.

“NLNG still strongly believes that it has a very strong case to be exempted from the NIMASA levies under the terms of the NLNG Act and will continue with its substantive case in court to obtain a judicial determination of whether or not such levies are due to be paid. It is for this reason that the payments that NLNG is making will be made on an ‘under protest’ basis.

“Our position has nothing to do with how much NLNG is being charged by a relevant agency but with the legality or otherwise of such a charge or levy, in order for us to ensure that all our payments are made within the ambit of what is lawful.

“As a law abiding company, NLNG has always paid its taxes, including those due after its tax holidays since 2009. It therefore has no issues with legally required tax payments but with levies, from which it is clearly exempt by virtue of the NLNG Act.”

NIMASA believes NLNG has been twisting the truth. It said contrary to NLNG’s claim, it has at no time flouted any court order as it was not a party to the court case that led to the exparte injunction by the Federal High Court, sitting in Lagos.

It said it was unfair of the NLNG to claim being a Federal Government agency, because of the 49 per cent shareholding. NLNG, said NIMASA, is a limited liability company incorporated under the Nigerian laws with majority shareholding by foreign entities and should pay all levies set out by the law.

The truce being enjoyed now was brokered by NLNG’s counsel Olawale Akoni (SAN) through letters dated July 5 and July 12.

The July 12 letter said: “Subject to NLNG continuing to make payment for all applicable NIMASA levies (three per cent NIMASA levies and Sea Protection levy), NIMASA undertakes not to detain NLNG-owned or chartered vessels.

“NLNG undertakes to pay outstanding levies attributable to the Freight on Board (FoB) and Cabotage vessels if they fail to make payment within three months of the date of this letter.

“Going forward, NIMASA is at liberty to collect these levies directly from the FOB and Cabotage vessels without further recourse to NLNG.”

The letter, signed by Omotowa said the NLNG had already made payment of $20million to NIMASA for the three per cent NIMASA levy.

“This sum will be deducted from the amount stated as due in your (NIMASA) letter. As agreed between NIMASA and NLNG, an oral application shall be made to the court by our lawyers which shall not be opposed by NIMASA lawyers and other lawyers in the ongoing suit to allow for the above payments to be made.”

NIMASA’s lawyer Mike Igbokwe (SAN) told the court about the agreement , asking that the letters be adopted by the court as consent order.

He said: “My Lord, there have been some positive developments in respect of this suit and the applicants which had led to exchange of correspondence and telephone discussions between the plaintiff (NLNG), the first defendant (Attorney-General) and NIMASA and which were conveyed to the second defendant (Global West) counsel.

“The discussions involved counsel for all parties. I have before me a letter dated 12th July 2013, written to NIMASA by the plaintiff containing the agreement that had been reached between the plaintiff and NIMASA which the Attorney-General and Global West had already been informed about. “We have agreed that the contents of this letter which NIMASA and the plaintiff intend to start implementing today should form the basis of a consent order to be made by the Honourable Court.

“On the basis of the letter, we urge the court to make a consent order. On behalf of the plaintiff, I confirm that the parties have had discussions and there have been exchange of correspondence.”

Justice Idris Mohammed said: “The letters dated July 5, 2013 and July 12, 2013 are hereby made the consent order of this court.”

The saga is a striking example of a legal dilemma that only the court can resolve as other avenues, including the mediation by the Federal Government, which has 49 per cent shareholding, have failed. All eyes will be on the court in September and till the matter is laid to rest.

July 22, 2013
U.S., China: Who wins the battle for Nigeria?

President Goodluck Jonathan’s ongoing five-day state visit to the People’s Republic of China has, once more, brought to the fore the seemingly Chinese quest to supplant the United States as Nigeria’s largest trading partner, writes Assistant Editor (Investigations) ADEKUNLE YUSUF

It is a win-win game, or so it seems on the surface, especially if the kernels of the arguments by the Presidency are cobbled. At least, that is the way public information handlers of the ongoing state trip to China by President Goodluck Ebele Jonathan have framed the visit. Expectedly, in the trip are some state governors and senior cabinet members. As a way of dousing the fire of criticisms that the five-day state visit to China was hurriedly put together to spite United States President Barack Obama who excluded Nigeria from his recent tour of some African countries, the Presidency insisted that the trip, which it said has been planned a year ago, is not a jamboree.

According to presidential spokesman Dr. Reuben Abati, the trip to the world’s second largest economy would help establish a lasting rapport with Chinese President Xi Jinping.

Abati said: “China is a very important country. China is the largest market in the world, with its 1.35 billion people. China is also the world’s largest creditor nation. China is also the largest importer and exporter of goods and it is a large consumer of primary commodities, including crude oil. In fact, after the US, China is the largest importer of crude oil in Nigeria. So, it is in our strategic national interest to have very good relationship with such a country.

“We have excellent relationship with the U.S. and the truth of the matter is that nobody can overlook America. The claim that the China trip is a response to the fact that Obama did not come to Nigeria is also not true because this trip was planned one year ago.”

Although it is an open secret that China is increasingly winning the heart of Nigeria, it is also a statement of fact that America remains Nigeria’s strategic trading partner, despite the determination of the U.S. to cut down on its crude oil imports. As a measure of the country’s importance to the U.S., facts show that the Foreign Direct Investment (FDI) has increased in the last few years, upping from $5.2 billion in 2000 to $8 billion in 2012. At a presentation on investment promotion strategies at the regional seminar for heads of missions in the Americas held in New York , Nigeria’s Ambassador to the U.S., Prof. Ade Adefuye, said the country has benefited tremendously from a diversification of investments from the oil and gas sector to other key non oil sectors, which he said Nigeria has witnessed in the last few years. The professor of history identified the lucky sectors to include power, energy, agriculture, hospitality, housing, and health care, among others. In agriculture alone, the envoy said Nigeria has witnessed huge inflow of FDI under the platform of the Nigerian/U.S Bi-National Commission working group, adding that figures showed that there is $6 billion FDI flow into Nigeria’s agriculture came from the U.S.

Adefuye said: “During the past ten years, Nigeria’s economy has expanded at an annual average rate of over 6.5 percent. This is well above the South Saharan Africa’s average of 5.6 percent from 2001 to 2011. From 2009 to 2011, Nigeria has had an average growth of 7.5 percent compared to the World growth of 2.8 percent.

“Nigeria is an emerging market and for the past decade, 2000 to 2011, Nigeria’s average growth rate has been the third fastest among the ten emerging market countries behind only China and India.”

To achieve the feat, the envoy said several methods were employed in carrying out the mandate of attracting FDI into Nigeria, including various institutional platforms already existing between the two countries. With this, the total U.S./Nigeria trade was valued at $38.5 billion in 2011, which represents a 12 percent increase from 2010, largely due to higher oil export volumes and prices.

In 2011, the U.S. imports from Nigeria were valued at $33.7 billion, consisting almost entirely of crude oil. “The U.S. non oil imports from Nigeria consisted primarily of agricultural products such as cocoa, tobacco, rubber, feeds, grains and nuts,” Adefuye said.

The envoy added that Nigeria was the world’s largest importer of U.S. wheat, valued at $1.2 billion in 2011, adding that other goods imported from the U.S. are vehicles, valued at $1.1 billion; machinery at $270 million; mineral fuel oil at $597 million, and plastics estimated at $87 million. Even the much-criticised Obama trip to Africa had some good news for Nigeria, despite the fact that he shunned Africa’s most populous country.

Last month, during the second arm of his three-nation Africa tour, Obama announced a five-year $7 billion power initiative, which, he said, was intended to help double access to electricity in Sub-Saharan Africa, Nigeria inclusive, where electricity supply is at a low ebb. The funds will come mainly from a U.S. trade promotion bank. In addition, another $9 billion of pledge from the U.S. private sector has been secured. This power plan will initially cover Ethiopia, Kenya, Tanzania, Nigeria, Ghana and Liberia. The Power Africa Initiative is a five-year partnership between the United States, six African governments and the private sector. The partnership represents a coordinated cross-border effort to build the regulatory, economic and policy foundation in order to double access to power in Sub-Saharan Africa, seeking to add more than 10,000 megawatts of more efficient electricity generation capacity – equivalent to 250 per cent of Nigeria’s current power generation – increasing access to electricity by more than 20 million new households and businesses.

If these reveal America’s continued relevance in the scheme of things, China too has presented itself as a dependable ally. There appears to be a lot at stake if China and Nigeria cooperate and seal a mutually beneficial partnership on important issues, ranging from infrastructure, economy, power (energy), agriculture and telecommunications, among others. Hinting at these huge prospects ahead of the trip, Minister of Finance and Coordinating Minister for the Eeconomy Dr. Ngozi Okonjo Iweala said Jonathan looked forward to increased Chinese investment and trade in Nigeria. And for this to happen, she added that the trip would finalise $1.35 billion in low-interest loans for infrastructure, such as airports and hydropower plants.

The loans, she said, are part of the $3 billion approved by China at less than three percent interest rate. Coming at the backdrop of the fact that the US demand for oil has fallen, leaving China and India to take up the slack, the relationship is necessary, especially now that “China is desirous of increasing its lifting of Nigerian oil.”

China has, over the years, been quietly exhibiting its interest and commitment to Nigeria’s economy by partnering stakeholders to plant several laudable development projects in the nation’s critical sectors. From the vast North to the arable grassland of the South, imprints of the Chinese are increasingly becoming visible everywhere. Interestingly, one of the beneficiaries of this renewed Chinese interest in Nigeria is the Federal Capital Territory (FCT), where residents are daily punished by traffic gridlock. But if all goes according to plan, a multi-billion dollar light rail project will soon link Abuja to Kaduna, which will certainly reduce the suffocating burden of commuters who daily experience unpalatable commuting stress. Apart from easing the traffic pressure, it will also help FCT decongest its rising population, since people who live outskirts the city can easily commute to and fro. Rather than finance it entirely from its budget, the FCT administration under Bala Mohammed will have the project financed, built and delivered by the China Civil Engineering and Construction Company (CCECC), which will pay the large chunk of the fund for this all-important project. Thanks to a loan (with interest rate put at below market rate) sourced from the state-owned Ex-Im Bank, which is providing $500 million of the $629 million cost of the project, the construction is billed to be completed latest by 2014 to the delight of FCT dwellers. Besides this, a World Bank report also added that China has set aside another $2.5 billion for the rehabilitation of the all-important 1,315-kilometre Lagos-Kano rail line. All this is geared toward helping to revamp part of the nation’s ailing transport infrastructure.

Also critical in the relationship with China is the power (electricity) sector. Going by estimates, it is said that about 1000 job opportunities will be open in the next four years for residents of Zungeru, Niger State, as a hydropower plant contract is finalised between China and Nigeria. All seems to be pointing towards the possibility that the plant, which will be handled by two Chinese firms, will be sited in the state. What this means is that Nigeria will soon be better off with additional 700 megawatts that the project will add to the national grid. That is not the only good news. As it is doing with the light rail project, the same Ex-Im Bank is financing the project, having supported the initiative by providing 75 percent of the required fund.

More Chinese companies are becoming big players in the economy, garnering stupendous share of the market in the service sector, including telecommunications. A statement by the Chinese embassy in Nigeria said no fewer than 30 Chinese companies operate in the country, employing thousands of Nigerians. The official estimate was put at 40, 000 people. In the retail segment of Nigeria’s economy, brands such as Alcatel, Viju Milk, and Huawei, among others, have become household names. From bakery to hotel business, China has also shown that it is indeed a giant, for many of its firms in the country are daily churning out products that meet the fancy of Nigeria’s market. Another measure of the weight of the Chinese presence in Nigeria is reflected in the textile and manufactured products. The popular China Town, established in 2005, has snowballed to become a one-stop shopping centre for all goods, such as jewelries, electronics, textile materials, shoes and kitchen utensils.

By the end of 2010, a whopping $8 billion FDI came from China to Nigeria, through in infrastructure and urban renewal programmes.

The impact of China in Nigeria is even more important when the former’s investment in the latter is juxtaposed with what happens in other African countries. According to the World Bank, Nigeria accounts for 30 percent of total Chinese investment on the continent. From $4 billion in 2006, investment between the two countries increased to $8 billion in 2010 and peaked at $13.3 billion 2012, which is a more than 100 percent increment. With this, Nigeria has emerged as China’s fourth largest trade partner and second largest export market of China in Africa. The volume of trade between Nigeria and China in 2009 stood at $6.4 billion. While Nigeria’s export to China was valued at $0.897 billion, China’s export was $5.5 billion. However, the result has not fared any better since 2010 when China’s imports reached $6.99 billion.

Another highlight of the growing confidence of China in the economy of Nigeria is the recent conversion of $500 million, a fraction of Nigeria’s foreign reserves, initially domiciled in American dollars, into Yuan (the Chinese currency) by the Central Bank of Nigeria (CBN). Describing the conversion, which was done over a six-month period, CBN Governor Lamido Sanusi said it was inevitable, thus signaling the country’s readiness to start receiving payments for its oil exports in Yuan.

Sanusi said the country looked beyond the present in taking the decision.

He said: “It will be almost living in a dream world to ignore China. It is the second largest economy in the world and it is well-managed.”

July 11, 2013