The Nation Newspaper

Tag: concerns

  • Concerns over Reps’ PenCom probe

    The decision of the House of Representatives to probe the activities of the National Pension Commission (PenCom) is creating tension in the industry. For an agency, which has grown pension contributions to N8.49 trillion and raised contributors’ confidence in the industry,  what is needed is consolidation of its successes. Stakeholders have called for caution on the part of the legislators and stressed need for collaboration for sustained growth of the industry, writes COLLINS NWEZE.

    the maxim that when two elephants fight, the grass suffers aptly captures the decision by the House of Representatives to probe the activities of the National Pension Commission (PenCom) since April 2017 till date.

    That plan appears to have brought about calm to the pension industry and prompted stakeholders to ponder on its grave implications for the sector.

    For a sector which thrives on confidence building and trust by the contributors on operators and regulatory agencies, what is needed is consolidation of the success stories in the industry.

    An ad-hoc committee of the House of Representatives mandated to probe activities of the National Pension Commission (PenCom) since April 2017 has sent tongues wagging on the exact motives and end game of the investigation.

    The Committee headed by Hon. E.J. Agbonayinma, had in a letter to the Acting Director General of PenCom, Aisha Umar, dated January 21, requested confidential information on the Contributory Pension Fund, leading to speculation in the industry on why legislators would request information that breaches the law.

    In the letter titled: “Request for Information,” the committee asked PenCom to furnish it with sensitive information on its operations as well as the status of pension contributions in Retirement Savings Accounts, contrary to the provisions of the Pension Reform Act (PRA) 2014 which forbids the Commission and members of the Commission from disclosing such information.

    Among the information requested by the legislative committee are “The Net Asset Values of the Contributory Pension Funds, details of supervision and regulations of Pension Fund Administrators and their key instructions and performances, compliances and defaults, annual pension operations of all the Pension Fund Administrators (i.e. details of amount collected from contributors and amount being paid out to retirees, from April 2017 till date).”

    The Committee also requested for details of investment percentages and profits from the investment of pension funds, and details of the Federal Government contributions to the Federal Government bonds.

    It also asked for the “contributions of retirement savings account holders to Pension Funds Administrators and details of payments from PenCom into the Treasury Single Accounts (TSA) and bank accounts details operated by the Commission” It also requested the PenCom to respond to the request urgently. Stakeholders are worried on the nature of the information that the probe may provide to the public. While some of them see nothing wrong in a probe, they are worried that sensitive and confidential information on the industry would be exposed to the public, stressing that the move may harm rather than help the industry and cause unnecessary anxiety among pension contributors in Nigeria.

    Many industry stakeholders who spoke to reporters off-the-record on the planned investigation of PenCom by the House wondered why the lawmakers would ask the Commission to breach the pension law by divulging sensitive and confidential information about contributions of retirement savings account holders.

    “Some of us are ready to sue PenCom if this confidential information is given out because it is an infringement on the right of the account holders as well as the business strategies of respective operator companies”, a senior staff of a PFA disclosed.

    The source also hinted that the House of Reps probe is capable of causing ripples in the financial industry in Nigeria due to the huge amount of investments by pension funds in various sectors of the economy.

    Meanwhile, there are no proofs whether PenCom intends to provide the information requested to the Committee or not. But a member of the Committee contacted said the Commission was yet to respond to their request.

     

    More stakeholders speak

     

    Former President, Chartered Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, said the information the legislators are asking for are confidential and not something that should be supplied immediately. He said that although the Reps have oversight functions over PenCom, but they may have to approach a court of law to be able to access the level of information being sought.

    “The House of Reps have the right to demand such information from PenCom because it is within their constitutional right. But the sensitivity of the information demands caution on the part of the legislators in the interest of the economy and pension contributors,” he said.

    Former Executive Director at Keystone Bank, Richard Obire, said he believed the recent report alleging that the Federal Government has borrowed more than its limit from PenCom may have triggered the legislators’ demand on the books of the agency.

    “They want to have a good idea of what the funds ought to be and what they are but what they are asking for is a lot of information that will require the involvement of Pension Fund Administrators and PenCom,” he said.

    Obire said the the demand for the information is also part of the legislators’ oversight functions, but said it might be difficult to unravel the agenda for the request.

    “Election is this month and someone is asking for that level of information. How are we sure the information being demanded is for national interest or politically motivated? Any right-thinking person should know that there is something behind it,” he stated.

    A source in one of PFAs who did not want to be quoted said PenCom is not expected to comply with the directive in the interest of the pension contributors and economy.

    “I do not expect PenCom to comply. It is protected by law to keep contributors’ information and not disclose them to third parties. Just like a bank or telecom operator cannot disclose information of their customers or subscribers, PenCom is not expected to give out such information,” he said.

    He added: “Our legislators have abused the concept of oversight. Although they have right over the law, but as it stands now, they do not have the time to do the work they are seeking on PenCom giving that this is election season. The public should enquire on what they need the information for”.

    Continuing, the source said: “It is only the court of law that can order a bank or PenCom to release certain information about a customer or pension contributor. I believe there is no way PenCom will expose such sensitive data that it will not impact negatively on the economy”.

     

    Pension funds’ investment

     

    The PenCom has clarified that pension funds are not lent out but invested in Federal Government of Nigeria (FGN)  Bonds, Treasury Bills and other financial instruments yielding profit over time.

    The funds which stood as at N8, 499,891.97 trillion as at November 2018 have depleted through borrowing to corporate entities, states among others.

    Data from PenCom showed that the FGN Bonds gulped N4, 439,561.29 trillion, representing 52.23 per cent of the total amount, while investments in Treasury Bills amounted to N1, 685,453.27 trillion which is 19.83 per cent.

    The total investments in FGN Bonds totaled N6, 162,999.71 trillion which is 72 per cent of the funds. Investment in domestic ordinary shares took N584, 321.06 or 6.87 per cent, while foreign ordinary shares got N60, 529.26 or 0.71 per cent.

    N9, 407.22 or 0.11 per cent was invested in agency bonds, while N23, 919.32 or 0.26 went into Sukuk bonds. Also, Green bonds got N4, 658.60 or 0.05 per cent, as state government securities got N143, 841.37 or 1.69 per cent invested in it.

    Similarly, corporate debts got N522, 511.51 or 6.15 per cent, corporate bonds got N515238.67 or 6.06 per cent investment, corporate infrastructural bonds got N7, 272.83 or 0.09 per cent and supra-national bonds got N6, 201.65 or 0.07 per cent investment.

    Also,  N705,786.76 or 8.30 per cent was invested in local money market securities, bank placements got N636,987.62 or 7.49 per cent investment, just as N68,799.14 or 0.81 was invested in commercial papers.

    It was further gathered that foreign money market securities got N2, 914.14 or 0.03 per cent, while N15, 765.26 or 0.19 per cent was invested in mutual funds.

    Open/close-end funds, PenCom said, got N10, 256.36 or 0.12 per cent investment during the period, while REITs had N5, 508.90 or 0.06 percent and real estate properties got N226, 289.65 or 2.66 per cent investment among others.

    The regulation on investment of pension fund assets prescribes allowable asset classes and investment limits for pension fund assets.

    Commenting on the initiative, Acting Director-General PenCom Mrs. Aisha Dahir-Umar said to promote a stable and sustainable pension industry, the agency adopted zero-tolerance for non-compliance and consultative supervisory philosophy in the issuance of guidelines and the review of existing ones.

    This, she said, was to further promote sound corporate governance in the industry and ensure the security of the pension assets.

    ”We believe this will promote better risk management in licensed pension operators,” she said.

    The PecCom boss also said the commission released the framework and guidelines for the implementation of the micro-pension scheme in 2018.

    “Similarly, circulars on pension enhancement and processing procedures of deceased benefits entitlement were also released by the commission.”

    She further said monitoring and reporting of non-compliance remained part of the responsibilities of the compliance officers.

     

    Other milestones by PenCom

     

    PenCom has seen the  Retirement Savings Account (RSA) Multi-Fund Structure conceived by the commission to align with contributors’ risk appetite with their investment horizon, at each stage of their life cycle.

    The RSA Multi-Fund Structure are to achieve optimum returns for contributors by aligning their pension savings with their individual risk/return profiles, provide investment portfolio choices to Contributors, and enhance safety of pension assets through adequate portfolio diversification, through increased investment in equities and alternative assets, such as infrastructure and private equity. We have recorded some successes so far.

    As at December 31, 2018, the RSA Fund had been successfully split into four funds, while the sensitisation of RSA contributors is still ongoing to create awareness on the features of the RSA Multi-Fund Structure. At present, RSA contributors  now have the opportunity to choose a Fund that best suits their risk-return profile. I would say the challenges so far have been low public education and awareness. There is low public awareness of the workings and benefits of the  Contributory Pension Scheme (CPS).

     

    Recovering Outstanding

    Pension Contributions

     

    The commission, in line with the provision of the PRA 2014, has developed a Framework for Recovery of Outstanding Pension Contributions with penalty for defaulting employers.

    Based on the Framework, the commission has engaged recovery agents for continuous enrollment into the CPS and recovery of un-remitted pension contributions plus penalty from defaulting employers.

    The recovery, which has been largely successful, has boosted the confidence of contributors and by extension encouraged non-participating employees and employers to embrace the Scheme. Through the initiative of recovery agent,  N15.31 billion representing a principal contribution of N7.85 billion and penalty of N7.46 billion have been recovered from defaulting employers.

    Both the principal contributions and penalty have been credited into the workers’ RSA accounts. The penalty is meant to compensate for the income that would have been earned if the contributions were remitted as and when due. The commission is also prosecuting recalcitrant employers who fail to remit their employees’ pension contributions into their RSAs.  As at today, the commission has instituted legal actions against 167 recalcitrant employers. Of that number, 78 have opted to settle out of court, 34 judgments have been obtained and 23 are at different stages in the courts.

    Besides, the commission has a fully functional Complaints Monitoring and Resolution Team, which attends to complaints on non/late/under-remittance of pension contributions into employees RSAs.

     

  • Concerns over teacher quality, quantity

    As the world celebrates teachers tomorrow, concerns over teacher quality and quantity will dominate the day. KOFOWOROLA BELO-OSAGIE and ADEGUNLE OLUGBAMILA report.

    Tomorrow, various programmes will hold around the globe to celebrate the World Teachers’ Day.

    This year’s theme, “The right to education means the right to qualified teacher” seeks to address the problem of teacher quantity and quality.

    It brings into focus the need for more teachers and their role in helping school aged children achieve the desired learning outcomes.

    According to the United Nations Educational, Scientific and Cultural Organisation (UNESCO), about 69 million teachers must be recruited for the world to achieve the 2030 goal of universal primary and secondary education for the about 264 million estimated to be out of school.

    Nigeria, which, according to the United Nations Children’s Fund (UNICEF), has the highest number of out-of-school children in the world – 10.5 million, also has a high teacher deficit.

    Teachers’ Registration Council of Nigeria (TRCN) Registrar/CEO, Prof Segun Ajiboye told The Nation that over seven million teachers are needed in Sub Saharan Africa – a large proportion of them in Nigeria.

    “In Africa, we need about seven million teachers.  In Nigeria, that will be a large number.  Precisely we cannot say this is what we need now because there are so many graduates of education waiting to be employed.  The idea by TRCN is to get those not qualified out of the system so that the qualified teachers can be employed.  In some states of the federation, there are no teachers in some schools, especially in the rural areas,” he said.

    According to the Nigeria Education Indicators survey conducted by the Federal Ministry of Education, Abuja, Nigeria had 542,533 teachers in public primary schools in 2016. Of the number, 466,465 had the minimum teaching qualification of the National Certificate of Education (NCE).  In junior and secondary schools, there were 584,160 teachers in both public and private schools, among whom 464,216 were qualified.

    Regarding teacher quality, the World Bank says teachers play key role in learning achievement of their students.

    However, according to a Policy Research Working Paper 7956 that served as background Paper to the 2018 World Development Report of the bank titled: “What Do Teachers Know and Do? Does It Matter? Evidence from Primary Schools in Africa,” many teachers in Sub-Saharan African countries lack the requisite skills to deliver quality learning.

    The research of seven sub-Saharan African Countries – Nigeria, Kenya, Senegal, Mozambique, Tanzania,

    Togo, and Uganda which was conducted “using data derived from direct observations, unannounced visits, and tests, from primary schools” questioned the amount of time teachers actually spend teaching; whether they had the relevant subject content knowledge to teach basic and higher-order language and mathematics skills; whether they had the pedagogical knowledge and skills; and how much teacher content and pedagogical knowledge matter.

    The paper reported that nearly a quarter of primary school teachers cannot subtract double-digit numbers and one-third of the teachers cannot multiply double-digit numbers. The teachers also lack pedagogical skills to better transmit knowledge to students; and less than 10 percent of them deploy best practices in their teaching.

    It reads: “Averaging across countries, we find that students receive about two hours and fifty minutes of teaching per day-or just over half the scheduled time. This is largely because teachers, even when in school, are not teaching. Furthermore, teachers’ subject knowledge is strikingly low. Only about one in 10 fourth-grade teachers master their students’ language curriculum, and about a quarter of the teachers fail simple tasks (such as subtracting two-digit numbers for math teachers, or choosing the correct pronoun or conjunction to complete a sentence for language teachers). With regard to pedagogy, few teachers are able to assess children’s abilities and evaluate their students’ progress, and few exhibit practices that are typically associated with good teaching (e.g. regularly checking for students’ understanding and giving feedback).”

    The study specifically found that Nigerian teachers had low content knowledge.

    It states: “While over 90 percent of teachers in Kenya and Uganda master the knowledge that their students are supposed to learn, only a quarter of Nigerian teachers do.”

    The study mirrors why the Kaduna State Governor, Nasir El-Rufai sacked 22,000 public school teachers last year for failing competency tests meant for Primary Four pupils.

    They were replaced with 15,861 newly recruited teachers among whom 4,526 were also sacked for failing competency tests after officials discovered some were employed illegally.

    In addition to the number, Kaduna State employed 88 Fellows of Teach for Nigeria (TFN) – an affiliate of the global Teach for All body which seeks out highflying graduates to teach in underserved schools and areas.  The fellows resumed in 22 schools across the state last month.

    Governor El-Rufai hopes to increase the number of schools with TFN Fellows to 200 very soon.

    Ajiboye said the TRCN was working towards ensuring only quality teachers teach in schools. To this end, he said teachers without the requisite qualifications have been given till November next year to get qualified, registered and licensed by the Agency.  He also said since last year, the agency now certifies qualified teachers by examination.

    He said: “We need quality teachers to achieve quality education.  The 21st century is not going to be based on products; it is going to be knowledge-driven.  Therefore you need quality teachers.  In terms of teacher professionalism, we have introduced professional qualifiying examination.  We started in October 2017.  The second held on June 7 and 8, 2018.  The next diet is on October 20 in all states of the federation.  Only those who pass will be registered.  The last examination, 83 per cent of the teachers passed.  Those who fail have to retake the exam. No teacher can have the TRCN certificate and license of practice without passing the qualifying examination.”

    Ajiboye said over 17,000 teachers had registered for this month’s examination already; while over 22,000 took the one conducted in June.

    He also said TRCN had engaged research companies to collect data on registered and non-registered as well as qualified and none qualified teachers in six states.

    “We already have a data bank on qualified and non-qualified as well as registered and non-registered teachers in six states of the federation selected from each geo-political zone.  It is an on-going exercise and we will move on to other states as funds permit,” he said.

    The Lagos President, National Association of Proprietors of Private Schools (NAPPS), Alhaji Wasiu Adumadeyin blamed society perception for poor quality of teachers in Nigeria.  He noted that it was important that government changed the perception that only poor students should study education and teach.

    “Teachers are the architect of the economy.  The success of other professions rest on teachers.  Unfortunately, it is the same profession that is badly neglected.

    “The reason why the quality of education is bad is because of the mentality of society towards the teaching profession.  Very brilliant people do not intentionally want to study education.  Those who apply to study Mass Communication and are not accepted are then given English Education.  That is why the poor students come to education.

    “But the government and the private sector should address this by looking into the remuneration of teachers to make it attractive,” he said.

    National President of the Alumni Association, Adeniran Ogunsanya College of Education (AOCOED Oto/Ijanikin, Oluwasina Akintolure, called on government to professionalise teaching.

    Akintolure bemoaned the authorities for folding its arms while every dick and harry comes to denigrate the profession.

    “In our appraisal, governments have not fared well especially in the area of professionalising teaching,” he began.

    “Those of us who passed through education learned the ropes while in school and that helps separate us from others. Unfortunately, those who graduated from other disciplines but have not been lucky to get jobs see teaching as the last resort.

    “While in school, we learned courses such as Philosophy of Education; Sociology of Education; Psychology of Learning; among others which helps many of us to understand the children in class. We easily can identify children that are slow learners, the fast learners as well as the average ones,” he said.

    The Immediate past Principal Government Technical School Mr Samuel Oladele Adaramola, sought the cooperation of corporate bodies, philanthropists  and NGOs with respect to empowering teachers in  technical schools via improved training, while ensuring enough facilities in technical schools.

    He said: “All over the world, technical education has been found to be very expensive.

    “At present, Lagos State has five technical colleges and government is considering additional three. There is no crime if corporate bodies take up the responsibilities of equipping those three schools as well as their teachers,” Adaramola argued.

     

  • Full Text: Our thoughts, concerns for Nigeria, by Catholic bishops

    Full Text: Our thoughts, concerns for Nigeria, by Catholic bishops

    In an address read by Dr. Ignatius Ayau Kaigama, the Archbishop of Jos and Conference President, Catholic Bishops’ Conference of Nigeria (CBCN) want President Muhammadu Buhari to act as a father to all by tackling “some glaring failures of government” and lopsidedeness in federal appointments to give every Nigerian a sense of belonging.

    We, the representatives of the Catholic Bishops of Nigeria, bring you our cordial greetings and blessings. We desired this meeting, in order to continue the dialogue we initiated with you even before your election as President. We therefore thank you for granting us this audience, which affords us the opportunity to share with you, once again, our thoughts and concerns on some issues affecting our dear country, Nigeria.

    First, we thank God for bringing you back to us after a period of ill health. We hope and pray that you continue to make progress on the way to full recovery, in order to be able to face the enormous challenges emanating from your exalted office.

    Your Excellency, needless to say that, as President, you are the father of our dear country Nigeria. It is therefore pertinent that as loyal citizens as well as informed members of the society, we come to you from time to time to express not only our willing cooperation with the government in working for the progress of our country, but also to share with you the feelings of the multitude of Nigerians at this moment. We work with the people at the grassroots and therefore, have first-hand information about what they are going through.

    There is no doubt that when you came into office, you had an enormous amount of the goodwill of Nigerians, since many saw you as a person of integrity who would be able to bring sanity into a system that was nearly crippled by endemic corruption.

    Nearly three years later, however, one has the feeling that this good will is being fast depleted by some glaring failures of government which we have the moral responsibility to bring to your notice. Else, we would be failing in our duty as spiritual fathers and leaders.

     

    Our concerns

     

    Your Excellency, there is too much suffering in the country: poverty, hunger, insecurity, violence, fear… the list is endless. Our beloved country appears to be under siege. Many negative forces seem to be keeping a stranglehold on the population, especially the weaker and defenceless ones.

    There is a feeling of hopelessness across the country. Our youths are restive and many of them have taken to hard drugs, cultism and other forms of violent crime, while many have become victims of human trafficking. The nation is nervous.

    Just as we seem to be gradually emerging from the dark tunnel of an economic recession that caused untold hardship to families and individuals, violent attacks by unscrupulous persons, among whom are terrorists masquerading as herdsmen, have led to a near civil war situation in many parts of the country.

    We are saddened that, repeatedly, innocent citizens in different communities across the nation are brutally attacked and their sources of livelihood mindlessly destroyed. Lives are wasted and property, worth billions of Naira, including places of worship, schools, hospitals and business enterprises are torched and turned to ashes.

    We are still more saddened by the recent massacre of unarmed citizens by these terrorists in some communities in Benue, Adamawa, Kaduna and Taraba states which has caused national shock, grief and outcry.

    The silence of the Federal Government in the wake of these horrifying attacks is, to say the least, shocking. There is a feeling of helplessness among the people and the danger that some people may begin to take laws into their hands.

    We therefore earnestly urge the government to take very seriously its primary responsibility of protecting the lives and property of its citizens and ensure that such mindless killings do not reoccur.

    Herdsmen may be under pressure to save their livestock and economy, but this is never to be done at the expense of other people’s lives and means of livelihood. We would like to add our voice to those of other well-meaning Nigerians who insist that a better alternative to open grazing should be sought, rather than introducing “cattle colonies” in the country.

    While thinking of how best to help cattle owners establish ranches, government should equally have plans to help the other farmers whose produce is essential for our survival as a nation.

    In a similar vein, daredevil kidnappers, who at present are having a field day, with a feeling of invincibility, must be made to understand that there is a government in this country.

    The government should invest more in equipping our Police Force with modern and high-tech devices that would help them track down and arrest these criminals and make them face the wrath of the law.

    The Federal Character Principle is enshrined in the 1999 Constitution of the Federal Republic of Nigeria: “The Government of the Federation or any of its agencies and the conduct of its affairs shall be carried out in such a manner as to reflect the federal character of Nigeria and the need to promote national unity and also to command national loyalty, thereby ensuring that there shall be no predominance of persons from a few states or from a few ethnic or other sectional groups in that government or in any of its agencies (Section 14, Sub-section 3-4.

    Disregard for this Principle in some Federal Government appointments, as well as perceptible imbalance in the distribution of federal amenities, has created the loss of a sense of belonging in many parts of the country, hence the constant cries of marginalisation, agitation for secession and calls for restructuring.

    These and many more of such problems are, in our opinion, grave matters that should be worrying all political leaders in our country today, rather than any bid for re-election.

     

    Conclusion, assurance of prayers

     

    Our Church has always complemented the efforts of government in such areas as providing quality education and primary health care services to our people.

    We continue to make our contribution to nation-building through our prayers, admonitions and assistance to needy. Nigerians whenever we can. As the voice of the voiceless, we shall continue to highlight the plight of our people and play our prophetic role of sensitising the government, thus promoting good governance, national unity and cohesion.

    We strongly feel that everybody in government at this moment has to take more decisive steps to restore the confidence of the Nigerian people in our governments.

    Our collective efforts must be seen in the desire to return to the fine principles of democracy, such as true federalism negotiation and consensus building, as means of achieving a more equitable distribution of the resources of our country and good governance.

  • 2015 polls and security concerns

    With the spate of  insecurity increasingly on the rise in the country, particularly in the North Eastern part,  the concern of the global community over the security situation in country can no longer be  ignored. Recently, the French Minister of Foreign Affairs, Mr. Laurent Fabius,  urged the Independent National Electoral Commission (INEC)  to defend Nigeria and Africa’s image by conducting a credible election in  2015. His German counterpart, Dr. Frank Seinmeir, equally implored the  Federal Government to  increase its efforts to end insurgency ahead of the 2015 polls. It is;  therefore, clear that the security worries in the country  need to be tackled frontally  in order to have a conducive atmosphere for the conduct of the 2015 polls.

    Unlike what many  believe, insurgency is not the  only source of security fears in the country. There is, for instance, the  volatile issue of Fulani herdsmen who often attack their  victims after their  livestock have destroyed the latter’s farmlands. The  increasing incidents of kidnapping in some parts of the country equally remain an  immense source of  security apprehensions. Kidnappers have continued to operate  without borders, spreading  the nets of their nefarious acts to hold both locals and  foreigners captive. The aged,  clerics, government  officials, academics, professionals, women and children are  not speared by  those who engage in this despicable act.

    In some  other parts of the country, armed robbery has become a major threat to national  security with robbers throwing cautions into the wind in  their operations. Activities of political thugs have also become a serious cause for concerns in the country. Recently, in Edo state, the ancient Benin City was became a thereafter  of the absurd when political hooligans openly opened guns at  each other in a no-  hold -bar shooting spray that left in trail sorrow, tears and blood.

    Without  a doubt, the spate of kidnapping across the country, the  incessant wave of crime and armed robbery attacks and the incessant activities  of terrorists in  the country are all pointers to the fact that insecurity is  fast becoming a norm in Nigeria. The implication of this to the democratic health of the country  and the heightened  sense of insecurity among the populace cannot be quantified.

    If not quickly addressed, the effects of all these challenges could  constitute a clog in the  wheel of the democratic process come 2015.

    According  to English Political Philosopher, John Plamentz, democracy is “government by persons freely chosen by and responsible to the  governed” while an election is a formal  decision-making by which a  population chooses an individual to hold public  office. Election is universally used to select representatives of the people. Elections were used as early in history as ancient  Greece and ancient Rome, and throughout the medieval period to select rulers. The  modern  “election”, which consists of public elections of  government  officials, didn’t emerge until the beginning of the 17thcentury when the idea  of representative government took hold in North America and Europe.

    The basic  principles of democracy are the requirements to organize  regular, free and fair election, freedom of individuals to nominate candidates,  periodic revision of  electoral register, independent judiciary and freedom of campaign among others.

    But recent happenings in Nigeria negate these, as people live in fear, while  some have been out rightly displaced from their homes and  are now refugees in  their fatherland.  Consequently, some eligible voters in the Northern part of the country might be  disenfranchised in  the coming election no thanks to the criminal activities of  the insurgents in  that part of the country.

    The insurgents  have organized themselves into a  pressure group that seeks to influence the political structure and the  structuring of power in the country. This they have done by  hoisting their flag  not too long ago in some local government areas in the  north, with the declaration of an Islamic State as being done in Syria.

    Despite on-going talks  about a ceasefire agreement people still live in fear. Those  those were lucky  to escape, have had tales of woe to tell. Men and young boys  are being forcibly  recruited, while women and young girls are being enslaved,  physically and  psychologically.

    Confirming the  enormity of the effects of the  country’s security challenge on the 2015 polls, INEC chairman, Professor  Attahiru Jega recently expressed his fear by submitting that  the commission cannot risk its human and material resources, particularly in the three Northeastern States of Adamawa, Borno and Yobe. In same  vein, Ebonyi State Governor,  Martin Elechi, has expressed doubt over the possibility of  holding the 2015  elections in view of prevailing security situations in the  country. Similarly, Governor Babatunde  Fashola of Lagos State has also expressed  serious concerns over the spate of insecurity in the  country, which according  to him poses a threat to free, fair and credible elections.

    The governor made the disclosure while playing host to students from the Royal College of Defense  Studies, United Kingdom, UK, led by Rear Admiral Jonas  Haggren, at the State  House, Alausa Ikeja. According to Fashola: “Insecurity is  a threat every time.

    It is not only to electoral process, even to human existence  and business  activities.”

    However, in-spite of  the herculean security situation in the country, the 2105 polls could  still be held in a peaceful atmosphere. But for this to happen, all  stakeholders must be ready to  work for peace. While it is true that government is a key  player on security  issues, the reality is that without the active participation  of other members and groups in the society, government alone cannot ensure  security. This is why  it is important that those behind the insurgent activities  in the country must embrace the peace offer from the federal government. There is no level of discontentment that cannot be talked over. Throwing the nation into needless crisis over any issue, no matter how important, would ultimately be counter-productive.

    Therefore,  every well meaning Nigerian, groups and  agencies must partner with INEC to ensure free and fair  election. INEC alone  cannot ensure a credible election. It is a joint venture. It  is a Nigerian project.

    On a final note, no  meaningful development can take place in an atmosphere of  chaos. According to  Martin Luther King, “peace is not merely a distant goal  that we seek but a  means by which we arrive at that  goal.”

     

    – Bakare is of the Features Unit, Ministry of Information & Strategy,  Alausa, Ikeja.

  • Securities regulators raise concerns on market risks

    World capital market regulators have outlined key concerns and risks that will highlight the global market trend between now and 2014, in a proactive effort to identify and deal with risks and strengthen the systemic framework of the global securities market.

    In its maiden Securities Markets Risk Outlook 2013-2014 released yesterday, the International Organisation of Securities Commissions (IOSCO), highlighted important trends, vulnerabilities and risks in securities markets that may be of concern from a systemic perspective. IOSCO is the global body of securities regulators and its members regulate more than 95 per cent of the world’s securities markets.

    The report was a joint effort between the IOSCO Research Department and the Committee on Emerging Risks (CER), which is comprised of senior researchers, chief economists and risk officers of almost 30 securities markets regulators from around the world.

    The information and data for the report were drawn from extensive consultation with experts, industry and other market participants; a survey to regulators, industry and academics; roundtables; and robust data analysis and literature review, altogether underlining the robustness of the report.

    According to the IOSCO, the outlook, in its maiden edition, will now be published annually with the aim of providing securities regulators with the information they need to adopt a forward looking approach in dealing with potential vulnerabilities and risks to global securities markets and the global financial system as a whole.

    The report identified and dealt extensively with four main risks including the interest rate risk, collateral management risk, derivatives risk and emerging market capital risk.

    The report noted that expansionary monetary policies have reduced interest rates to the point that real rates are at times negative pointing out that while these policies may help stimulate the real economy, the spill-over effects may create potential risks for securities markets.

    According to the report, a search for yield is turning investors towards leverage products such as CDO´s and leveraged real estate investment funds.

    “In response to global policy requirements, demand from investment firms for high quality collateral has increased significantly. More generally, bank holding companies with over the counter (OTC) dealer operations must locate high-quality collateral to meet initial and variation margin requirements for their OTC trades. Additionally, central banks have been absorbing collateral to provide needed bank funding. This growing demand has altered the balance of collateral in the system, diminishing availability of high-quality collateral and could impact pricing,” it stated in reference to collateral management risks.

    The report indicated that the OTC derivatives markets have undergone significant reform since the financial crisis including the mandatory clearing of derivative contracts through central counterparties (CCPs).

    It however noted that while CCPs are designed to reduce systemic risk in the derivatives market by reducing counterparty risk, shifting the risk from bilateral OTC contracts to a single point of infrastructure is a challenging balancing act.

    The report outlined concerns about the capital flows of emerging market, which have experienced significant capital inflows in the post-crisis era.

    According to the report, debt securities and non-bank lending have overtaken foreign direct investment and banking lending as the main source of these capital inflows. After the announcement of the tapering of the expansionary monetary policies of the US Federal Reserves, a sudden reversal in capital inflow occurred, highlighting the need for further structural reforms aimed at making securities markets more resilient.

    Chairman, board of IOSCO, Greg Medcraft, presented the Outlook in London. Accompanying him were IOSCO Secretary General, David Wright, Vice-Chair of the Growth and Emerging Markets Committee, Bert Chanetsa, the Chair of the Committee on Emerging Risks, Carlos Tavares, and the Chair of the IOSCO Africa/Middle-East Regional Committee, Nigeria’s Arunma Oteh.

    Medcraft said the report was a great example of IOSCO being proactive, forward looking and ahead of the curve in assisting securities regulators to achieve its objectives of protecting investors, ensuring markets are fair, efficient and transparent and reducing systemic risk.

    “I would urge all IOSCO members and policy makers globally to carefully reflect on the outlook’s observations and understand – and act on – the implications of the trends and risks it identifies for their markets,” Medcraft said.

  • Concerns over low stock of blood

    There is a growing concern over low stock of blood in the country.

    According to Dr Nicholas Ohaya, President, HealthCare Ministry of St Dominic Catholic Church, Yaba, Lagos, the response to voluntary blood donation is still very low because people are afraid that the screening might leave a disease in their blood.

    Ohaya, at a blood donation drive organised by the church and Lagos State Blood Transfusion Service (LSBTS), said blood donation “is safe.” People should not be afraid of the exercise, he said.

    He said the gesture is to help the people in need of blood to survive.

    A donor, Mr Patric Julius, said he donated his blood to save lives.

    Mr. Samuel Ihebinike, who is making his fifth donation, said the exercise is a way of helping others. He said anybody could need blood at any time. Miss Amaka Okwonkwo, another donor, said there is no cause for fear in blood donation because every donor will be tested before their blood is taken.

    In a related event, the President of Muslim Students Society of Nigeria, Lagos State University, College of Medicine (LASUCOM) chapter, Abdul-Wahab Egberongbe said mortality rate is increasing in Nigeria,  but it can be reduced if Nigerians imbibe the culture of non-remunetated voluntary blood donation. “Many Nigerians are dead because they need blood to remain alive and could not get a donor. If all Nigerians donate blood regularly,  there would be enough blood in the blood bank at all times, thus death arising from non availability of blood would reduce,” he said.

    He spoke at a blood donor drive organised by the LSBTS and the Muslim Student Society at LASUCOM, Ikeja.

    He said no fewer than 63 people donated blood, adding that his society’s partnership with the blood transfusion service was informed by the need to assist accident victims and other people who need blood to survive and also to support the Lagos State government to achieve its goal of getting adequate blood in its blood bank.

    The president, however, called on corporate bodies, educational institutions, religious bodies, Non-Governmental Organisations (NGO’s) and well meaning Nigerians to partner with the Lagos State Blood Transfusion Service in its blood donor drive as the agency cannot get enough voluntary blood donors without the support of everybody. A donor, Damilola Bashua, a 400 level student stated that one of the reasons she is studying medicine is to save live through blood donation, to put smiles on people’s faces and above all the medical profession is to save lives.

  • Digital Migration: concerns over Nigeria’s readiness

    Digital Migration: concerns over Nigeria’s readiness

    After 52 years of television broadcasting in Nigeria, the onus is on Nigerian government to make the best of a full digital revolution that will kick off in 2015. VICTOR AKANDE, who was part of the recently held Digital Dialogue Conference in Johannesburg, reports.

     

    IF the forum, which had journalists from all African countries, had taken place at the Cocoa House, Ibadan, and sponsored by a Nigerian government or private organisation, Nigeria could have been said to have kept pace with a precursor tradition, as creator of the first television station in Africa, with the establishment of the WNTV by the late Chief Obafemi Awolowo in 1959. But leading private broadcasters, Multichoice Africa facilitated the credit for South Africa, and the Sandton Convention centre, a stone-throw to the popular Nelson Mandela Square, provided a united front for African journalists to deliberate on the best possible ways of unlocking and exploring the digital migration process, which has begun around the world, including Africa.

    The conference evaluated the timeline agreed by Europe and Africa that by June 2015, there will be a complete switch over from the current analogue broadcasting to digital. The implication, according to the International Telecommunications Union (ITU) treaty, is that after June 2015, analogue television transmissions will no longer be protected from harmful interference caused by digital TV transmissions. In the same vein, analogue TV transmissions will not be permitted to interfere with digital TV transmissions.

    The revolution has already begun, with countries like France, United States, United Kingdom, Sweden and New Zealand already advanced in their migration programmes. Finland and Mauritius have already switched off from analogue.

    Experts have predicted that for a smooth transition to take place, proactive measures must be taken by the government, and stakeholders must be involved in the deliberation process. The question is that since South Africa, which began the process years back, is yet to overcome the complexity of the transition, what hope is there for other African countries that they will meet the deadline with just three years to go?

    South African technology journalist, Aki Anastasiou, who was moderator of the forum, provided the background to the wizardry of communication technology and how Africa is fast taking advantage of the devices to improve its lot. Anastasiou, who noted that eight out of 10 fastest growing economies in the world are situated in sub Sahara, explained that new technologies like the digital migration can only benefit the people more by increasing. He said this to dismiss the fears in some quarters that new technologies are associated to job loss. “Agriculture and Tourism are hardly being touched in Africa. The digital advantage can only let the world know that Africa alone has the potential to supply the world with food,” said Anastasiou, who predicted that the world next internet technology entrepreneur will come from Africa within the next five to 10 years.

    Vicki Myburgh of PriceWaterhouseCoopers took the lead in a series of presentations by seasoned facilitators at the conference. Her paper: Entertainment and Media Outlook 2012-2016: The End of the Digital Beginning, set the mood for this reporter whose concern is primarily on the content that will possibly feed the spectrum expected to be expanded by the digital technology.

    According to Myburgh, digital innovation accounts for majority of the growth we are seeing in the industry. She observed that in 2011, spending on digital advertising and consumer formats increased by 17.6 %, compared with only a 0.6 % rise in non-digital, adding that digital’s share of total spending will grow from 28% in 2011 to 37.5 % in 2016, accounting for 67 % of all E&M spending growth to 2016. In a chart, she revealed that while there are several differences in each of the industry segments, one consistent driver is digital.

    For Koenie Schutte, Managing Director at LS of SA Radio and Secretary, Southern African Digital Broadcasting Association (SADIBA), his brief was to take the participants through the process of migration from analogue to digital. He noted that the most important variables in the transition process to Digital Terrestrial Television (DTT) are the consumer and the home environment.

    He said that content is key in the transition process, as viewers have been promised more channels. He said no incentive to the consumer could be greater than great content. He observed that many TV households today use poor antennas and rely on marginal analogue TV reception. He said DTT will be on frequencies not necessarily covered by current antennas and new antenna, while installation may cost more than the Set Top Box (STB).

    The next speaker, Ms Beth Thoren spoke on the importance of communication in the migration process, emphasising on the need for government to get stakeholders involved from the start. Thorem, who is the UK Digital Communications Director, said that adequate funding and a good communications strategy were the ingredients that gave the UK attempt a headway. She noted that UK became the first country in the world to switch to digital broadcasting this year, after seven years of educating the masses and laying out the communication messages.

    She said the country was lucky because it had 200 million US dollars for the project, which was primarily funded by BBC, being the major donor. “We were able to switch over because apart from the funding, which is essential, we ensured that we were honest to the people about extra costs to them, we corrected and responded to all articles that were written about the campaign and we were firm about the date that we would be switching over,” said Thoren.

    If the UK model is anything to go by, it would be observed that its government had evolved proactive and systematic line of actions to ensure that they are not caught napping when possible interference from neighbouring countries hit them.

    The deregulation of broadcasting by General Ibrahim Babangida government through the Decree No. 38 of 1992 can only be said to have created better understanding between the government and the governed in Nigeria, but industry watchers in Nigeria are worried that the relationship between stakeholders and relevant agencies is not utilised well enough on the issue of digital TV migration.

    Perhaps this shortfall in communication is not peculiar to Nigeria alone, as various governments in Africa do not seem to have engaged the stakeholders well enough on this digital revolution that is set to herald more channel choices and value to television viewers. But Multichoice, a big private sector stakeholder in the scheme, and the largest pay TV company in Africa, has set an enviable agenda based on its Social Responsibility objective. Multichoice began a test-run of the digital TV innovation in Nelson Mandela’s town of Soweto.

    The households visited in Soweto confirmed their choice of more channels on the new device. Reason for this is not far fetched – the digital signals take up much less bandwidth than analogue signals. The result is that the DTT can broadcast up to 10 television channels in the same bandwidth – giving you the potential of many more channels to choose from. Another benefit that this gives the people of Soweto is that they are for the first time, able to access many free-to-air TV channels. They agreed that truly, the new innovation renders sharper picture, and better sound quality; such difference as it is between an old video cassette and a DVD.

    Mnet Technical Director, David Hagen, observed that many players in the migration process still habour several unanswered questions. “Taking the South African experience, digital migration is proving to be extremely difficult and slow because people don’t know the fate of the television sets they own, where they will buy the devices, who the manufacturer will be, the cost implications and when it will actually start,” he said.

    Hagen said he was sure the South African experience was similar to many other African countries’ experiences, where the roll out is very minimal because governments and regulators were still debating on the standard and technology of the devices they wanted to use.

    He said that for a smooth transition into digital broadcast, there was need for content that isn’t currently on analogue- He noted that local content is vital and should be readily available.

    A Nigerian Digital Migration Communication expert, Mr, Jenkins Alumona, does not think that Nigeria is ready for the digital migration and consequent switch off of analogue broadcasting by 2015. Put succinctly, Alumona’s response is, however, that of optimism. “Are we ready for migration? No. Can we be ready? Yes. But we have to move at a faster pace. At the current pace, the 2015 date is not attainable.”

    Alumona, who was a participant at the Digital Dialogue Conference, expressed dissatisfaction over government’s effort on the project when he said: “government’s effort, if it exists, is not known to the general public. I understand some things are being done at the policy level, but nothing is visible yet.”

    On the insinuation in some quarters that digitalisation may add to unemployment, the expert differed. “On the contrary; it should lead to more employment across several sectors. Freed spectrum may lead to more telecoms that will provide more employment. In the broadcast industry, more content will be required and by extension more jobs.”

    Does he think that Nigerian broadcasters have enough content to fill this spectrum? Alumona said: “At this point, No! But Nigeria has the capacity and potential to provide the required content. Do not forget we have already proven that with the prodigious nature of Nollywood.”

    On the two grades of the decoder for digital transmission, Alumona recommends the T2 for Nigeria when the time comes. “T1 is basically obsolete. Countries currently on T1 will eventually have to move to T2. The UK, which was one of the earliest to migrate, used T1 and they are already planning to migrate once again to T2. So it’s a no brainner. We need the very latest and T2 is the very latest. One of the DTT operators in Nigeria, GOTV already uses T2.”

    Alumona, who believes that for certain categories, government has a responsibility to subsidise the decoders, spoke on the future that digital migration portends for pay TV business when he said: “The premium market will always exist and so the impact will be minimal.”

    Alumona’s views further buttresses the insinuation that the government of Nigeria is under-estimating the huge complexities to be faced in implementing the migration and probably needs to first focus on pushing the NBC to action or make it more efficient .