Tag: deficit

  • Infrastructure deficit threatens Africa

    Infrastructure deficit threatens Africa

    Economist and former Chairman of Goldman Sachs Asset Management, Jim O’Neill, has said Africa needs to bridge the infrastructure investment deficit in the continent.

    He spoke during the African Finance Corporation (AFC) conference on infrastructure held in Lagos.

    O’Neill said infrastructure in general has been estimated to have the potential to add an average of two per cent to Africa’s economic growth rate over the next decade as investment is brought to bear to bridge the deficit.

    He said Africa’s future depends on its policy makers doing the right thing. “That is working to create better governance, reducing crime, fighting corruption and delivering improved infrastructure. Infrastructure development is both a defining challenge and a standout investment opportunity for Africa and investors around the world,” he said.

    He said Nigeria is growing at seven per cent despite poor access to power; decent power could boost economic growth to 10 to 12 per cent adding that there is no reason why the country should not become one of the G20.

    The conference attracted more than 500 leading thinkers from government, academia, business and finance, fuelled energetic debate on both the opportunities and the challenges of the African infrastructure landscape.

  • Housing deficit: Red bricks as panacea

    Housing deficit: Red bricks as panacea

    One of the intractable problems Nigerians, especially the poor, experience is lack of decent accommodation, which results from high cost of building materials of which cement is the major component. SULAIMAN SALAWUDEEN writes that, to address the housing deficit in the country, government and individuals should consider red brick blocks as major alternative to cement. 

    Food, clothing and shelter are mankind’s most basic necessities of life. While food and clothing could be somewhat common among man and the animals, shelter distinguishes him from the wild beast. Man lives in homes while animals, especially the non-domestic ones, live in bushes or burrows.

    Man takes time to prepare for the home in which he will live, as it requires long-time planning. The most important aspect of the planning is the funds with which materials will be procured. Once the fund is available, he begins procurement of the necessary materials.

    However, the most significant material needed for the erection of the building is cement which is a binder, a substance that sets and hardens and can bind other materials together.

    Experts argue that the most important uses of cement are as a component in the production of mortar in masonry, and of concrete, a combination of cement and an aggregate to form a strong building material. There are numerous cement factories in Nigeria such as Dangote Cement in Benue State and Ikoyi, Falomo Lagos, Eastern Bulkcem Company, manufacturers of Eagle Cement, the Nigerian Cement Company Plc. (NIGERCEM) located in Nkalagu, Ebonyi State and Ibeto Cement Company Limited, among others.

    Despite that some of these companies produce enough cement for domestic consumption; the product seems to be out of the reach of the common man due to high price. The vital component for residential building is so costly so much so that its least price is N1, 000; going by the latest price slash by Dangote Cement Company.

    The situation results in the inability of the poor to procure cement for building purposes; thus making the under-privileged to live in ramshackle houses, with its appalling health implications.

    Those who could afford to rent decent apartments are paying through their nose as the rents are very expensive. To worsen the situation, most landlords demand payment of three years rent from their prospective tenants and subsequently request yearly payment on the anniversary of the previous rent. This usually creates problems for most low-income earners.

    This was the experience of Mr. Dada Olowolagba (pseudonym) at the anniversary of his previous rent. He had thought deeply how he will provide shelter for his family the following year if his rent expires.

    Having obtained the three-bedroom apartment he once occupied at a remote section of Ajebandele area of Ado-Ekiti, the Ekiti State capital in December, his landlord had insisted that he must pay the rent for the next year one month before the anniversary of the preceding rent.

    That year, he could not pay the rent. While still running from pillar to post in a bid to settle the rent that was already belated, he visited one of his friends for financial assistance. The visit literally removed the veil from his eyes as why he could not have a house of his own was revealed to him.

    His friend who lives in his own house narrated to him how he was able to end incessant worries and troubles from his former landlord; how he denied himself some pleasures in order to develop a piece of land he had abandoned.

    The tips seemed the fillip he needed. Olowolagba immediately deposited some money with a block moulding industry that supplied some blocks at his undeveloped plot of land in another part of Ado-Ekiti.

    His conclusion on the next line of action was instantaneous. He decided to build a three-bedroom apartment from the following year. He showed much commitment to  the project. He succeeded. The feat raised his status as a proud house owner.

    Investigation by our correspondent revealed that many are of the view that individual ownership of houses would be the panacea for the current situation in which the poor live in decrepit homes.

    For Apanisile Smart, a builder, having a house of one’s own makes one have a peace of mind and prevents such worries as recounted by Olowolagba, even as he said it doesn’t cost so much to erect a decent home.

    “It takes a combination of tact, focus, discipline, prudence and some measure of enlightenment,” Smart said.

    According to him, quite a number of those who languish in stress arising from lack of personal accommodation have not much excuses to give, given the option of mud or red bricks, the principal raw material for building houses which is readily available in all the communities. He also said it has a lot of advantages over cement.

    Smart, however, added that the tendency by a large section of the populace to dub both mud and red bricks traditional or archaic rather than modern structures is a major reason this important component for building is less popular and acceptable among the people.

    He said: “But those who, by any calculation, end up using the mud or red brick blocks soon find out they have landed on a gold mine, a type of building the value of which they may never be able to assess.

    “We are not saying cement is not good and that people should stop using it. What we are saying is, given the ever-rising cost of cement, it is time people began to seek alternatives which red bricks, the production of which has lately been improved upon, provide them.

    “Although my personal house was made of cement blocks, not using red bricks to build it when I did was a mistake.”

    However, he added, people still look down on those who use red bricks as not having sufficient money or living a life of yesteryear. “They feel those type of houses are inferior. How wrong”, he lamented.

     

    Mud or red brick as building option

    According to Smart, while mud bricks are the blocks made from raw and unprocessed mud dug up from the earth, red bricks are those that are processed through the removal of particles before compressing them into shapes.

    Explaining the processes which the mud undergoes before use, Mr  Smart said the old types are laid and chucked using a mixture of sand and cement, while the brick blocks are interlocking as they have been made into such shapes.

    “When some quantity of cement is added to the processed mud and compressed mechanically, the result is often more compacting, stronger, smoother and more attractive than the ones without cement. The latter is currently produced by a company in Ado-Ekiti,” Smart said.

    Continuing, he said: “One of the properties of mud blocks is their naturalness. It also has self compatibility. Stress wise, it bears weight better than concrete. This technically means that it has greater tensile strength than cement blocks. It also has the capacity of acting as bullet-proof because it has no hollow portion. It is cheaper, generates less heat and can be found anywhere and easy to work on.

    “The inside of structures built with red bricks is always cool, which suits a country like Nigeria where electricity supply is epileptic. You cannot experience heat while inside a room built with red bricks as experienced in a house built with cement blocks.”

    Corroborating Smart’s assertion, Mr. Oluwasola Ajayi, a bricklayer of 32 years experience, explained that the best material for building houses, given his experience, are mud blocks which he noted can equally be decorated to one’s taste.

    “There are some houses built with mud blocks that you can never know they are mud. If you get good bricklayer, the finish will be just as smooth as houses built with cement blocks. Most of the buildings around Okesa, Oke-Okeoriomi and other areas across the state capital were built over 60 years ago and they are still strong.

    “The only thing is if someone decides to use the mud blocks rather than red bricks, he has to calculate and ensure that sthe rain did not fall on it while the house is still being constructed. But those with the cement component can be built at anytime of the season. Rain or sunshine, the bricks remain solid and sturdy,” Mr. Ajayi said.

    Mr. Ayeni Stephen, who recently completed his mud bricks building, said the experience had been wonderful. Although he confirmed the perception of inferiority attached to the use of mud blocks in building houses, he admitted he would have preferred cement blocks to bricks blocks if he had sufficient capital.

    He said: “I must admit I decided to use mud blocks because I did not have much money. However, I have realised it would have been a mistake to over-stress myself sourcing money to buy cement blocks. The house is a great joy to me. I have been living there for over a year now. It is ever cool inside.”

    Dele Babatunde, another resident of Ado-Ekiti said: “It is easier to build a house than even buying a car. With just N10, 000, you can build a house. Look for a burrow pit where you can dig up mud, make your blocks there and then transport them down to your site. If you have 2,500 blocks, you will set a three bedroom flat conveniently.”

    Continuing, he said: “What remain for you are the roofing sheets. Palm tree logs or stems are also alternatives to plank woods. They are better than the common planks for use in roofing houses. In my area now, mud blocks are the in-thing. Let people seek knowledge. The Holy Bible says ‘my people perish for lack of knowledge.’”

     

    Are mud bricks easily available?

    While mud bricks are relatively scarce to find, especially in the urban areas, the cement-fortified red bricks are common and available. There is a company that specialised in the production of red bricks in commercial quantity.

    Findings, however, showed that as yet, mainly official establishments have accepted the innovation which the red bricks offer. Government-owned schools, hospitals and office blocks built with red bricks are springing up in the state capital. A few private individuals also use the bricks to design the front of their houses.

    On the red bricks not yet popular,  Mr. Jacob Ibikunle Olugbade, the proprietor of Jaco De-Quincy Industry which produces the blocks in commercial quantity explained that “any new innovation, however good and commendable, always takes time to win acceptance among the people. With time, I believe they will get to know the advantages of red bricks and begin to appreciate them better. If Ado-Ekiti were to be another Lagos, I know the experience would have been different.”

    He also said: “However good an idea is, people will examine it for sometime before accepting it. This is why the bricks, despite its strengths and the fact that it is the oldest type of material ever in use by man, our major patronage have been by government agencies.

    According to Olugbade, building three-bedroom flat with red bricks, costs between N500, 000 and N600, 000.

    “It is cheaper compared with cement blocks when you consider the fact that you don’t have to paint mud bricks houses as you would those of cement buildings which you often have to repeat after sometime.”

    Aside these advantages, people also need to know that the property is also movable as the blocks can be dismembered with ease and moved from one location to another for resetting. This is because the blocks are interlocking unlike cement blocks.

    “There are structures made of red bricks in Britain which had lasted over 400 years and are still standing strong. Even in situations of fire disaster, buildings made of red bricks don’t suffer cracks as those built with cement blocks,” Olugbade said.

     

    Need for government’s intervention

    As the federal and state governments struggle to make houses available for citizens, there is urgent need for their intervention in the area of popularising this cheap means of building houses, more so as the raw materials are locally sourced.

    However, Mr. Akeem Ajuwon appreciated the difficulty in accessing the old type bricks as one of the factors inhibiting its acceptability among the people.

    Ajuwon said: “If the raw material is readily available, people will use it. So many people want to use it but they cannot find it. People cannot dig holes, scoop red sand as in the olden days.

    “I know the mud bricks have been modernised now. We see it all over the places but my opinion is that they are still not common. If government is committed to crashing the prices of cement and support individuals to own their houses, they can do that by supporting the production of bricks blocks to make them available to the poor sat relatively cheaper cost,” he said.

    Lamenting the epileptic electricity supply, Olugbade noted that his company runs basically on diesel which he said has made the cost of running the business high.

    He said: “The prices of the red bricks can be brought down if electricity supply is enhanced. The company has been running on diesel-powered engines all the time, which heightens production costs.

    “I remain in business not because there is much encouragement or incentives but because there is a social responsibility attached. Those working there will lose their jobs if I close down the company. Support from government is very necessary.”

     

  • ‘Govt funded 2013 budget deficit with N544bn bond’

    ‘Govt funded 2013 budget deficit with N544bn bond’

    The Debt Management Office (DMO) said yesterday that the Federal Government raised sovereign bond worth N544.06 billion to fund the 2013 budget deficit.

    The DMO Director-General, Dr Abraham Nwankwo, stated this at the opening of a two-day workshop in Badagry, Lagos.

    The workshop, with the theme: “Transformation of Nigerian bond market and its benefits”, was organised by the Capital Market Correspondents’ Association of Nigeria.

    Nwankwo, who was represented by his Head of Policy, Strategy & Risk Management, Mr Joe Ugoala, spoke on the topic: “The Role of DMO in the Transformation of the Bond Market”.

    Nwankwo said that N744.44 billion was spent on funding fiscal deficit in 2012; N852 billion was also raised in 2011 for the same purpose against N1.36 trillion in 2010.

    The director-general said that before the resuscitation of the sovereign bond market, government borrowing from the domestic market was mainly in the form of 91-day treasury bills.

    He said that four Nigerian banks took advantage of the sovereign benchmarks established in the International Capital Market (ICM), to raise 1.85 billion dollars (N290.45 billion).

    Nwankwo said the amount was raised between January 2011 and November 2013.

    He said the banks that issued eurobonds during the period were GTB, Access Bank, Fidelity Bank and First Bank.

    According to him, 20 Nigerian corporate organisations have raised long-term capital of over N200 billion from the domestic debt market from 2005 to 2012 to fund the development of the real sector.

    “The transformation of the domestic bond market in Nigeria and the ICM provided alternative source of funding for government’s financing gaps and development of the domestic debt market”, he said.

    Nwankwo said the new bond market led to the establishment of international benchmark for foreign debt issuers by International Finance Corporation (IFC), a member of the World Bank group.

    He said the IFC, in March 2013, issued a naira denominated debt instrument worth $76 million in the domestic debt market.

    He said that the succession of large budget deficits in the recent past resulted in the rapid growth of public debt.

    Nwankwo also said government had instituted a regime of fiscal consolidation to ensure reduction in government’s domestic borrowing over time.

     

  • Bayelsa Utd happy  to cancel goals deficit

    Bayelsa Utd happy to cancel goals deficit

    Players and officials of Bayelsa United have expressed joy over the team’s 3-0 bashing of El-Kanemi Warriors of Maiduguri in a week 24 Globacom Premier League match at the Samson Siasia Sports Complex, Yenagoa on Sunday.

    Midfield maestro, Azubuike Okechukwu opened the floodgates in the 8th minute with a low drive to register his first goal for the club this season.

    The club’s top scorer, Ebimobowei Peter made it two in the 17th minute, taking his goal tally to eight for the season. The new signing, Gindo Abdulaye made it three on the dot of forty minutes.

    The Yenagoa-based side went into the game with minus three goals but canceled the deficits with three unreplied goals against El Kanemi.

    The win against El Kanemi, catapulted the coach Ladan Bosso-tutored side into second position on the league table.

    The team’s media officer, George Ameli told SportingLife that the goals were timely.

    “The goals were highly welcomed. We have been looking for this for long now so as to cancel the goals difference we had before Sunday’s game against El Kanemi. The team and the fans are happy with the development.

    “We know with this, we can continue to challenge for league titles without worrying of goal differences. The players, technical crew are focused and ready to compete till the end of the season.

    “The win against El-Kanemi has changed the atmosphere in the team and everybody is ready to put more efforts in the quest to realize the dream of the club.”

    Meanwhile, the management, staffs and players of the team are also happy that Kano Pillars have rejoined the football family after the unfortunate accident that befell the technical crew.

     

  • ‘Which additional deficit has Aketi incurred?’

    ‘Which additional deficit has Aketi incurred?’

    In this piece, lawyer and social critic Dr. Doyin Odebowale justifies the decision of the Ondo State Action Congress of Nigeria (ACN) governorship candidate, Mr. Rotimi Akeredolu (SAN), to appeal the judgment of the Election Petitions Tribunal, which affirmed the victory of Governor Olusegun Mimiko in the October 20, 2012 election.

     

    A very good friend of mine and colleague in the University of Ibadan drew my attention to the article titled: Aketi and Oke incurr additional deficits, written by one Niyi Akinnaso, published on the back page of the May 7 edition of The Punch Newspaper. The piece is anything but intelligent, truthful and professional. The Special Assistant of the Ondo State Governor could not have done a better job of this hack writing. That such a heavily jaundiced and simple opinion could be given such prominence should be a cause for grave concern among all lovers of truth. Granted that this person has the right to comment on any issues as a columnist, even those beyond his knowledge and competence, truth must always be treated as sacred. Nobody should be allowed to get away with blatant lies for whatever reasons.

    I shall leave the issues concerning this man’s grouse against “ Tinubu, Aketi, ACN and the PDP and others associated with them”. Only he can explain why a columnist would bother himself about “negative propaganda” from those whose interest was in “capturing” power either for its own sake or for self-aggrandisement. It appears not only ludicrous but also dishonest for anyone, who pretends to be an impartial commentator, and not a politician or a commercial analyst, to express that “my grouse was with the tactics used by the ACN, particularly the location of the planning and the logistics of the Ondo election in Lagos and Osogbo and the massive negative propaganda which defied decorum and truth”. He failed to mention how this affected him more than any other genuinely disinterested analyst.

    One does not need to read the article far before reaching the conclusion that this man was paid to abuse Aketi while presenting Dr OlusegunMimiko as the victim of unwarranted attacks from Tinubu, Aketi, ACN and, as an after-thought, the PDP, to achieve a dubious balancing. He combined half- truths with outright concoctions to deceive unsuspecting members of the reading public. His attempt at sophistry was so amateurish that it takes even a barely literate person to see him as a willing tool in the hands of Mimiko. There are quite a few of his type around.

    The very first lie written by this funny analyst concerns the “role” of Aketi when “he “… participated in the universally condemned arrest of Pa AdekunleAjasin, his townsman and the first civilian Governor of Ondo State, for his leadership role in NADECO.” A journalist, or anyone who has the rare privilege of having a generous space, such as the type grossly abused by this hack writer,NiyiAkinnaso, must always ensure that only the truth is disseminated to the public, however unpleasant.

    Aketi was NOT the Attorney_General and Commissioner for Justice when the late sage, Pa AdekunleAjasin, was molested in his house by the Military Administrator, Late Navy Captain Anthony Onyearegbulem. Pa Ajasin was visited by the brash Milad in his home at Owo. He was not arrested. Not a few people believed that the choice of Aketi was meant to douse tension at that time because of his relationship with the Ajasin family. Mama Ajasin was Aketi’s godmother. This fact was revealed by no other person than Mama herself when the Administrator led an entourage on a condolence visit to the house after the demise of Pa Ajasin.

    A serious commentator ought to have enquired before writing. The fact that this writer conveniently ignored the ignoble role of Mimiko and people of his ilk before and during the same period betrays hypocrisy of the worst kind. How could he have forgotten that this same man queued behind Akin Omoboriowo against the same Pa Michael AdekunleAjasin as a budding chameleon in the Second Republic? Mimiko served under BamideleOlumilua as the Commissioner for Health during the period of Babangida’s grand deceit called transition programme. Chief Michael Adefarati, the former governor of Ondo State, tasted of the treacherous broth dutifully prepared and served by Mimiko. He had served him as Commissioner for Health before he began the campaign of “one governor, one term”. He simply sold him to the PDP hawks. Aketi was Adefarati’s lawyer against Mimiko in spite of their being friends since their student days at the University of Ife, now ObafemiAwolowo University.

    Tinubu will not be the first person who attempted to “capture” Ondo State for pecuniary or other benefits, assuming the charge is correct. Obasanjo did just that successfully with the active connivance of the unscrupulous politicians, prominent among whom, was Mimiko. The rigging machine of the ruling party was oiled and constantly serviced by these scumbags. The whole of the south west was overrun by the sheer force of the invading marauders. Politics of “do-or-die” soon replaced the tenuous strive at engagement at the level of ideas. Outright assassination, arson and all unimaginable acts of brigandage took the centre stage in the region. This belated beatification of Mimiko can only be sold to our children who are taken in by the effective media propaganda of the Ondo State government because they were either not born at the time under reference or were too young to appreciate the nature of the narcissistic politics at that time. It is the duty of public analysts, whose main interest lies in the analysis of issues as they affect the society and are not enamoured with the colour or type of the currencies constantly doled out, to bring these notorious facts to their knowledge.

    He soon settled in his natural habitat, PDP, after Adefarati had been ousted. The prize for treachery was the office of the SSG, Ondo State. Dr OlusegunAgagu soon became a victim of this serial traitor. The first step was to ensure that the chord tying him and General OlusegunObasanjo was severed in his bid to become the new reference point in the state. He was handsomely rewarded with the ministerial portfolio. He soon declared his gubernatorial intention, the main reason why everyone who came his way was made unhappy. The PDP was about to be paid in his coin. General Obasanjo revealed during a political campaign in Akure that he came to solicit his support against Agagu, the incumbent governor of the state at that time. He said he advised this overtly ambitious fellow to allow him finish his second term. Mimiko refused and threatened to leave the PDP. Obasanjo then enquired if he had been cursed by his mother’s rivals. Let this writer go back into the archive and check if this did not happen.

    This crude reference to his mother was the basis of public sympathy for him. He was rigged out as it has been the habit of his trainers. All the noise makers, including expiring and spent individuals who mounted the soap box in his support lately, were conspicuously absent during the struggle to retrieve the mandate secured through subterfuge. All the civil servants, members of staff in higher institutions and market women, who are now specimens of experiment in his political laboratory, supported him openly. Official secrets were leaked to him routinely. The PDP was in government through coercion. The people looked up to him as the de jure leader waiting to claim his mandate. The Court of Appeal declared him as the winner and the rest, as it is said, is history.

    The other attempt at confusing people concerns the writer’s comment on the recent judgement delivered by the Ondo State Election Petition Tribunal sitting in Akure. This “carpenter” wrote about “overwhelming evidence” in Mimiko’s favour. What evidence, if one may ask? As a lawyer, I do know that when a matter is still a subject of litigation, there is a permissible limit beyond which no one is expected to comment until the case is disposed of. I am also aware that once a judgement is delivered it becomes a public document and anybody can apply for a Certified True Copy of same. It is after then that comments will be based on knowledge. I can assert, confidently, that I have read that judgement and anxiously await the pronouncement of the appellate court on it for my own continuing education. I also have the written addresses of parties in my possession. I doubt, very strongly, if this man has read a page of the 85-page document before writing that mediocre piece, ostensibly on the promptings of Mimiko’s camp. He only depended on excerpts from the notes of journalists or agents of government to do his hatchet job.

    This hack writer opines thus in his article; “In a unanimous ruling, the Tribunal concluded that the petitioners failed to prove that their complaints substantially affected the outcome of the election. It added that the petitioners also failed to show that they would have won the election the election or that Mimiko would not have won it. A careful reading of the judgment shows that the Kaak’an-led Tribunal further enhances the credibility of the court as a desirable arbiter of electoral disputes”.What logic!

    What careful reading will ignore the salient points raised in the petition and draw a general conclusion after a facile reference to “beyond reasonable doubt”? If there was an allegation of illegal injection of voters to the tune of 164, 000 and INEC admitted that it “ADDED” over 100,000 when there was no review of voters’ register, which party has the burden of proof to discharge? What does the Electoral Act, 2010 (As Amended) provide with regard to the display of the register? If a matter is said to be a pre-election matter, what is the meaning in law? Can a judge assume jurisdiction on the same matter after such pronouncement?

    With respect, I submit that all other matters are ancillary to these posers. If the voters’ register is heavily compromised through curious and conscious injection of unascertainable individuals contrary to the provision of the law, the onus rests squarely on the shoulders of INEC. It does not matter whether Aketi scored 0. It is true that the Act places almost an impossible burden on the petitioner who asserts that there are irregularities during the conduct of an election. To hide under a seemingly impregnable fortress of the required standard of proof in criminal matters to justify the voluminous injection of new voters, shortly before an election, smacks of fraud on the part of INEC. No vote cast under such sloppy arrangement should be considered valid.

    The suggestion by the writer that once election results have been announced and a winner declared losers should not challenge the outcome is not only fraudulent but idiotic and hypocritical. From Amaechi through Aregbesola to Fayemi and Mimiko, experience has shown that issues formulated in election petitions are better appreciated and pronounced upon at the appellate court. Mimiko was a beneficiary of this review at the Court of Appeal. Amaechi did not even contest any election save the primary conducted by his party, PDP. For any columnist, so called, to advise his betters to regard the matter as closed, based on the judgment of a Tribunal, because they are lawyers is the height of impudence. He wrote that candidates should begin to accept defeat, however contrived, with equanimity. The writer also insinuated that Aketi and Oke are desperate politicians who would not mind killing people to remain in power. He is, however, silent on the callous disposition of Mimiko, the incumbent, who enjoys “overwhelming” support of the electorate but still goes ahead to inflict pains on them.

    Who are the observers who certified the election as free, fair and transparent? Why are lecturers and other staff of Adekunle Ajasin University, Akungba, and Rufus Giwa Polytechnic, Owo, sacked, if the governor’s victory is genuine? How are the fountains and the markets faring? How many roads have been touched since the so called victory? What is democracy without a viable and vigorous opposition? In whose interest is the current harassment of civil servants and market women? What will make a man who enjoys “overwhelming” support of the people so paranoid to the point of sending political goons after his perceived opponents? Why was the whole of Akure in a mournful mood after the judgment, if indeed they gave their mandate to Mimiko freely and fairly?

    The writer also insinuated that some states under the ACN were “captured” by Tinubu. The evidence in all these states is the massive infrastructural development and all-embracing peace. It means nothing to Mr Akinnaso that there has been a significant shift in the pervasive attitude of banditry. What this writer would want to see is the “democratisation” of looting. He harbours a lot of anxiety on what will become of the mineral resources of Ondo State. After five years in the saddle and over N600 billion received from revenue allocation from the centre and the internally generated revenue, the incumbent, Mimiko, has constructed “fountains” and markets. The Tomato factory in Arigidi Akoko is yet to take off. There is the Dome project, among several other white elephant aspirations that have become sources of unbridled corruption.

    Those of us who know Aketi at close quarters are convinced, beyond doubt, that he will make any decent shortlist anywhere in the world. The Nigerian Bar Association, which he led as President between 2008 and 2010, became the main opposition party at a most crucial period in the country. Those who turned President Goodluck Jonathan into a senior clerk in Aso Rock attempted to lure him with heavy briefs. Aketi rejected all these overtures flatly. Ondo State will be the direct beneficiary of the quality accretion that will take place if Aketi becomes the governor.

    Challenging the judgment at the appellate court is expected of a lawyer. It is only a man who is not sure of his so-called victory that is unsettled as a result of this move. If Mimiko followed this path in 2007 and became the governor, it is not out of place for anyone to follow suit. Only a person suffering from deliberate amnesia or a hired hack will have issues with this noble move.

     

    Doyin Odebowale, PhD, LLB (Hons) B.L

    A Legal Practitioner, teaches Classics at the University of Ibadan

     

  • ‘Africa’s infrastructure deficit impinges trade’

    ‘Africa’s infrastructure deficit impinges trade’

    THE huge infrastructure deficit in Africa is inhibiting intra-regional trade and economic development in the region; it was learnt at the weekend.

    This was the submission of finance and economic experts from Africa at a discussion panel organised on the sidelines of the 2012 meetings of the International Monetary Fund/World Bank Group in Tokyo, Japan.

    The experts said the infrastructure challenge however, provides huge investment opportunities with returns of between 10 and 25 per cent annually, depending on sector.

    But beyond seeking foreign direct investment, Jean-Louis Ekra, President of the Africa Export-Import Bank (Afrexim bank), challenged African countries to find a way to jointly invest their $468 billion external reserves to fix critical connecting infrastructure that continue to impede growth and development. “Even if you take up to up to 10 per cent ($46.8 billion) of that to fix infrastructure, we would leave something for our children. “We must also find innovative ways to use pension assets (across the continent’s member nations) to finance infrastructure (just as) public private partnership could be further explored in these areas… Innovation in financing instruments (like bonds) is key,” he said.

    The Afrexinbank boss stressed that Africa’s joint venture projects should be in sectors such as road and rail transportation, which would make it easier to move goods, persons and services across the continent with greater ease, thereby boosting commercial activities.

    “It is so difficult to travel within Africa, so we have signed a $1.9 billion loan contract with Kenya Airways to enable it expand its fleet, and (Nigeria’s) Arik Air (which seeks) to expand its fleet in Angola and Ghana.

    ‘No single kilometer of rail has been added by African countries since independence, except for South Africa, preparatory to the world cup it hosted in 2010. We need to change all of this,” he stressed.

    Mr Ekra said the effects of the ongoing global crisis on the continent have resulted in more pressure on Afrexim Bank with more institutions now approaching it for credit lines. This, he said, is because other sources of credit for on-lending have gradually dried up owing to the financial crisis in the Euro zone.

  • How to bridge housing deficit, by experts

    How to bridge housing deficit, by experts

    The provision of affordable and decent housing for Nigerians has been a top priority for successive governments since the country’s independence in 1960.

    Unfortunately, observers maintain that for more than five decades, Nigeria has yet to develop an effective and workable housing delivery programme that would enable the country to achieve the goals of its housing for all policy.

    In some instances, gigantic housing programmes were initiated by successive administrations since independence but most of the housing schemes remained largely uncompleted.

    Besides, in many instances, many Nigerians used up their entire life savings in the struggle to build their own houses.

    Historically, one of the most ambitious housing policies in the country was introduced in 1979 by the Shehu Shagari Administration.

    Observers note that in spite of the fact the policy involved a nationwide housing scheme, it, nonetheless, failed to meet the nation’s housing requirements due to a number of factors.

    Available records showed that between 1973 and 2006, more than 30,000 housing units were constructed by the Federal Housing Authority (FHA) as part of measures to bridge the housing deficit.

    Statistics put the current housing deficit of Nigeria — a country with more than 150 million inhabitants — at more than 12 million houses.

    Industry experts, however, cite the inability of the government to amend the Land Use Act of 1978, which vests exclusive land ownership rights on the governor of each state, as a major factor limiting the actualisation of the housing for all initiative.

    They recall that efforts by the administration of the late President Umar Yar’Adua to amend the Act largely proved abortive.

    The experts also note that the sales of Federal Government’s property, including government-owned quarters to existing occupants by the administration of former President Olusegun Obasanjo, also failed to remedy the situation.

    However, observers note that the public-private partnership in housing delivery, introduced by President Goodluck Jonathan’s administration, has not been able to solve the problem, as most citizens cannot afford the exorbitant cost of the houses built by the private developers.

    Mr Gimba Ya’u Kumo, the Managing Director of Federal Mortgage Bank of Nigeria (FMBN), acknowledges the enormity of the housing challenge facing the country.

    He said the Federal Government would require more than N56 trillion to provide 16 million housing units to bridge the housing deficit in the country.

    Giving a breakdown of the figure, Kumo expatiated that the 16 million houses would be constructed at a conservative cost of N3.5 million per unit.

    “Fundamentally, we need 16 million housing units to bridge the housing deficit existing in the country; providing these houses will cost N56 trillion at a conservative cost of N3.5 million per unit.

    “This is a colossal amount, which cannot be funded only through the National Housing Fund (NHF). It requires urgent injection of funds from both the government and the private sector.

    “That is why we are exploring offshore funding to boost financing for mass housing, which the nation urgently needs,’’ he said.

    Kumo said the new management of FMBN had been pursuing new relationships with some institutions such as the Nigerian Air Force, the Nigerian Navy, the EFCC and the Nigeria Police, with a view to financing the construction of staff residential estates for them through the NHF.

    He said the bank had offered to finance the building of 150 housing units in each state of the federation and Abuja for officers and men of the Nigeria Police, making 5,550 housing units in all.

    Besides, Kumo said the FMBN was putting in place a pragmatic housing programme for the citizens in spite of some constraints, which included lack of compliance with the NHF scheme, outdated mortgage laws and inadequate funding.

    However, there are strong indications that the situation will soon change, as the Federal Government has just approved a new draft policy on housing delivery which is aimed at producing an average of one million housing units annually.

    Minister of Information Labaran Maku announced the government’s decision at the end of a recent meeting of the Federal Executive Council that was chaired by Vice-President Namadi Sambo.

    He said the new policy, when operational, would provide additional employment and income-generation opportunities in the country.

    “Council deliberated on this policy and all of us appreciated the kind of effort, the energy and the idea that went into the policy.

    “Essentially, this policy hopes to achieve certain strategic objectives for Nigeria. The first is that it hopes to bring about real mass housing, which this country has been dreaming about for decades.

    “This policy emphasises the central role of the private sector, while the government serves as a regulator and a policy facilitator.

    “But, over and above this, the policy hopes to drive employment and income generation in the country,’’ he said.

    Shedding more light on the new initiative, Ms Ama Pepple the Minister of Lands, Housing and Urban Development, explained that the new policy would address housing problems facing of low-income earners and “the poorest of the poor’’ in the society.

    She said the policy would also address issues such as houses’ maintenance, slums in urban areas, skills-acquisition centres and disaster management.

    “There is one important issue that was brought up during our stakeholders’ forum at the National Council; this is the issue of maintenance because a lot of our people do not have the maintenance culture; when we build a house we just leave it.

    “Look at the block of flats in Abuja, I recall a ceremony we once had; we had to go and repaint some of the houses. We don’t pay attention to property maintenance in this country.

    “So, we have also included property maintenance in the policy,’’ she added.

    All the same, Mr Adeyemi Williams, a property consultant, urged the Federal Government to adopt the social housing scheme to address the problem of housing deficit in the country.

    He said the social housing scheme entailed the provision of affordable houses by the government or non-profit organisations or by the combination of the two.

    Williams said the key objective of a social housing scheme was to provide accommodation that would be affordable, particularly to low-income earners.

    He stressed that rents charged on the scheme’s houses were usually kept low through government subsidy.

    The scheme would be governed by a strictly defined system of rent control to ensure that rents are kept low.

    “Unlike the private sector in which rents are dictated by the landlord, social houses are allocated to prospective occupants according to needs.

    “Each social landlord operates an allocation policy, stating in advance what factors will be taken into account when deciding who gets preference,’’ he said.

    Williams said local government authorities or housing associations could adopt the social housing scheme for their housing development programmes.

    “A social housing association is an independent and non-profit organisation that uses surpluses to maintain existing homes and finance new ones.

    “It is now possible for commercial organisations to initiate and manage social housing projects. Although this is not yet a common practice, it should be encouraged,’’ he said.

    Williams appealed to the Federal Government to consider the adoption of the social housing scheme as part of its housing delivery strategies, particularly as there were some housing bills which had yet to be passed by National Assembly.

    However, Mr Tunde Makanjuola, another property consultant, holds a contrary opinion.

    Makanjuola advised the three tiers of government to reduce the trouble which people often encountered while processing title deeds on landed properties so as to boost investment in real estate.

    He, nonetheless, stressed that less than three per cent of Nigerian landlords had title deeds on their landed property.

    Consequently, only about three per cent of property owners were paying taxes on their property since there was no way of mounting surveillance on the remaining 97 per cent, he added.

    “This means that many illegalities were being perpetrated in transactions on landed property, while the government is being short-changed.

    “The proceeds from the taxes levied on property can be used to address the current housing problems facing the country,’’ he said.

    Makanjuola urged the government to create a database on property owners to ensure their proper registration and regulation.

    “This will help the government to keep track of any transaction on landed property, while reducing problems caused by fraudulent property agents and family land owners,’’ he said.

    Makanjuola stressed that property tax was a more stable way of generating revenue than other forms of taxes.

    “If the governments can exploit this avenue of revenue generation, it would be useful in efforts to provide the needed infrastructure.

    “Also, property owners will be able to exploit the potential of their property to the fullest because the title can be used as collateral to get loans for other investments,’’ he said.

    Makanjuola also called for the establishment of a land commission that would be charged with the sole responsibility of formulating policies on land matters, title registration and property development.

    Experts, nonetheless, insist that efforts should be made to ease the process of obtaining mortgage loans to fund housing projects.

    “If people are given liberal access to mortgage loans with good interest rates, the current housing deficit in the country will be reduced considerably,’’ some of them say.