The Nation Newspaper

Tag: Foreign

  • Graft: ‘Foreign’ trial to the rescue?

    Graft: ‘Foreign’ trial to the rescue?

    A few politically exposed persons, who escaped justice in Nigeria, have been successfully tried and jailed abroad. There are also reported extradition requests pending against others. How can the process of extradition be made less cumbersome so that those who have cases to answer abroad can do so? Robert Egbe sought lawyers’ views.

    The prosecution of politically exposed persons in Nigeria is usually a complex process. More often than not, trials involving influential former office holders drag on for years and may be susceptible to being compromised.

    With the never-ending injunctions obtained by lawyers, and other loopholes they exploit in the laws, there is uncertainty about when justice will be done.

    However, the case is usually different where such suspects are found to have committed elements of their offences abroad, particularly in the jurisdictions of some western nations. For instance, the judicial systems of the United States (US) and the United Kingdom (UK), not bogged down by the ethnic, cultural, historical or socio-political pressures of Nigerian society, have administered justice timely and impartially in cases involving some members of the Nigerian political elite.

    • Ibori ... jailed in the UK
    • Ibori … jailed in the UK

    A case in point is the James Ibori saga where, in 2009, a Federal High Court sitting in Asaba, Delta State, discharged and acquitted the former governor of the 170-count charge of corruption brought against him by the EFCC. But, five years later, a London court convicted him of money laundering and conspiracy, on charges similar to the ones he was cleared of in Nigeria.

    Also, in September 2005, the late ex-Bayelsa State governor Diepreye Alamieyeseigha was detained in London on charges of money laundering at a time he was not even under investigation in Nigeria and                                                              could not even be prosecuted because of his constitutional immunity.

    There are other cases of Nigerians wanted abroad. The extradition to the UK of a former Managing Director of the Nigerian Security Printing and Minting Company (NSPMC), Emmanuel Ehidiamhem Okoyomon, has been ordered by a Federal High Court in Abuja. Okoyomon’s extradition is being sought by the UK government over his alleged role in the bribery allegation involving officials of the Central Bank of Nigeria (CBN), NSPMC and Securency International Pty of Australia between 2006 and 2008.

    •Kashamu... allegedly wanted in the US
    •Kashamu… allegedly wanted in the US

    The case of Mr. Buruji Kashamu, who was recently sacked by an election tribunal as senator representing Ogun East Senatorial District, is another example. Former Attorney-General of the Federation (AGF) and Minister of Justice Mohammed Adoke (SAN) had stated in an application for extradition of the Nigerian businessman at the Federal High Court in Lagos, that Kashamu was the subject of a one-count charge superceeding indictment in a criminal case filed before an Illinois court on May 21, 1998.

     

    •Allison-Madueke... invited for questioning in London
    •Allison-Madueke… invited for questioning in London

    Two Fridays ago, Britain’s National Crime Agency (NCA) invited Nigeria’s former Minister of Petroleum, Diezani Allison-Madueke and four others for talks concerning a case of bribery and money laundering.

    In almost all of these cases, voices of discontent have been raised by party loyalists or ethnic groups of the suspects, who have raised allegations of witch-hunting and selective prosecution. In some cases, the potential for violence if convictions are secured against the suspects is not inconsequential. This is particularly true of the potentially-volatile Niger   Delta region, home of most of Nigeria’s oil reserves.

     

    The advantages of trial abroad

     

    The government of President Muhammadu Buhari recognises the limitations of the administration of justice system in Nigeria and has repeatedly emphasised the need for judicial reforms that will aid his administration’s anti-corruption war and strengthen democratic governance.

    The president has since appointed a Presidential Advisory Committee against Corruption headed by Professor Itse Sagay, a prominent professor of law and civil rights activist. The Committee will, among other things, advise the present administration on the implementation of required reforms in Nigeria’s criminal justice system.

    • Okoyomon
    • Okoyomon

    Nevertheless, many politically exposed Nigerians are suspected of owning property abroad. If such property are found to be evidence of money laundering, like in the Ibori saga, they could form the basis of prosecution in foreign courts. Nigeria’s role would be limited to supplying information and approving extradition requests, should the foreign government make a legitimate request. This would relieve the country of the financial burden of carrying out the trials locally. It would also put paid to allegations of selective prosecution and witch-hunting.

    Constitutional lawyer and author Mr. Sebastine Hon (SAN), explains how extradition works.

    He said: “Extradition by Nigeria of its citizens for trial abroad is lawful and legal. The procedure is covered under the Extradition Act 2004, and once Nigeria has a reciprocal agreement with any country, it is bound by that agreement, which is in the form of an international treaty, to extradite any person requested by that country.

    “Unless that agreement is no more in force, if a request is made while that agreement is still in force, Nigeria is under obligation to comply, under international law, to extradite that person.

    “Extradition in international law ensures “the smooth working of the system across international borders, to achieve worldwide peace and the fight against crime,” Hon said.

    He continued: “So, without that every country is a sovereign nation that will refuse incursion into its own territory for the purpose of arrest and trial abroad.

    “Nations realising the importance of fighting crime using lawful means, enacted various prosecution laws to help and situate that right of prosecution for crimes committed on their soils by foreigners.”

     

     Lawyers prefer trial at home

     

    Nevertheless, where elements of a crime are committed in Nigeria and also abroad, the learned silk opined that the suspect could be tried abroad, after Nigerian courts have already failed to do justice.

    He said: “If certain elements of a crime are committed in Nigeria and some are committed abroad, the courts of both countries have jurisdiction to deal with those cases.

    “So, if a Nigerian court fails to convict and somebody secures a conviction abroad, fair enough. It means the judicial system of that country is stronger than ours.”

    He explained that by the intendment of the criminal law, anybody that commits a crime should expect punishment.

    He added: “So if you escape in Nigeria and you’re found culpable elsewhere, that is good. There’s nothing wrong with that, it’s even better to have it so.

    “Especially those people, who commit high crimes, they just milk the nation of billions and billions of naira and they muscle their way through in Nigeria, so to speak, and because of the weak legal and judicial system, if they’re convicted abroad, there’s nothing wrong with that. I fully support that.”

    • Hon
    • Hon

    Mr. Hon dismissed allegations of witch-hunting made by suspects in corruption trials.

    He said: “Without being a witch, nobody will witch-hunt you. If you’re no witch, you shouldn’t be afraid of being hunted. I support extradition. It is in our laws and in so far as no one has abrogated those laws, the full process of the law should go on, no matter whose ox is gored or no matter whose interest is affected.”

    Lagos lawyer and human rights activist, Festus Keyamo, wants all accused persons, no matter how highly placed, tried in Nigeria. Although Keyamo supports lawful extradition, he opined strongly that the Nigerian judicial system must be made effective enough to see prosecutions through.

     

    • Keyamo
    • Keyamo

    “If there’s a genuine request for extradition, Nigeria has a duty to oblige any country that asks for anyone for trial,” Keyamo said. “The reason is that Nigeria is part of the global community and we’re part of various treaties – bilateral, multi-lateral – that guarantee or prescribe the ways and methods by which people can be extradited for trial.

    “So, if we’re part of all of these treaties and there’s a genuine request for extradition for anybody, we have a duty to oblige those countries. If we start turning down extradition requests on flimsy excuses, it will mean that we’re not serious in the fight against corruption,” he said.

    He explained that if a Nigerian commits an offence here and elements of that offence abroad, Nigeria should not go begging that other country to try its own citizen.

    He said: “Once the person is arrested here and there is jurisdiction to try the person here, we have a duty to make our system work and try the people and convict them.

    “However, if there are elements that happen here and elements that happen abroad and it will not amount to double jeopardy, then we can as well try the person here and convict the person, if the person is in our custody.

    “It will amount to cowardice and evidence of a weak sovereignty if we just voluntarily tell the person to go abroad, to send the person away when we have the jurisdiction to try the person here.”

    •Ugwumadu
    •Ugwumadu

    For Lagos-based lawyer, Mr. Malachy Ugwummadu, he understands why there is a perception that the judiciary doesn’t seem to be formidable enough when it comes to the administration of the criminal justice system. Nevertheless, he rejects any idea of the government encouraging foreign trials for its citizens, likening it to outsourcing the administration of the Nigerian criminal justice system.

    “To make such a proposal is to encourage the government to abandon or abdicate its responsibility,” Mr. Ugwummadu said. “A government that will have to outsource the administration of its criminal justice system, has abandoned or abdicated all the crucial purpose of that government, and so it’ll be farfetched in terms of recommendations to suggest that that should happen,” he added.

    He continued: “However, I did say that I understand why this is coming up, because if you take a closer look at the records of prosecution so far, it’s difficult to identify any politically exposed state actor, who has gone down in this country on account of an effective prosecution.

    “That is already an indictment, but what to do is not to hand over the security of the country to another country, including those who may not even have the patience to follow the due process of the law.”

     

    The way out

     

    The key to an effective judicial system, said Keyamo, is to reform it. He said: “So, the fact that our system is slow and not working does not mean that we should give up our sovereignty, I do not subscribe to that, we should not.

    “We have a duty to make our system work, but, if it’s only when there’s no offence here, the person has not committed any offence here but has committed an offence abroad and there’s a request for the person to be tried abroad, we must send the person away. Like the case of Buruji Kashamu, we have a duty, no matter the legal gymnastics.”

    Even where the Nigerian justice system fails, Keyamo, a socialist, critic and columnist, feels it must not be given up on.

    He said: “That does not mean that we should shy away from our responsibility to try people and convict them, we have a duty to make it work. So, if at the end we avoid trying people like that, in preference for sending them abroad, when will our system work?”

    Mr. Ugwummadu recommends several measures that will better aid the fight against corruption. He said: “What we need to do is to strengthen the agencies of government that we have, campaign a lot more for the government to make the judiciary a lot more independent, punish judicial elements, be they judges of the High Courts, Customary Courts, Court of Appeal, Supreme Court, wherever they may be. Discipline those dissidents, who are in the habit of perverting justice and then fund properly the anti-corruption agencies.”

    He continued: “The welfare and security of this country are the primary responsibility of government. The administration of criminal justice in any country borders also on security. The reason is that if you’re unable to deal with crime and criminality using the instrumentality of the law and the judiciary, you’re exposing every other law-abiding citizen to another degree of violence, because at that point you’ll be talking of self-help.

    “So, a government that throws its hands up in defeat and says well, the only thing we can do is to outsource our judicial system to the United Kingdom or United States; that is not creative. Secondly, it does nothing to correct the wrongs. My recommendation, therefore, is that our government should become a little introspective, look inwards, correct the anomalies in the system that have made it possible to frustrate effective criminal prosecution.”

     

  • I won’t rely on Foreign based players-Siasia

    I won’t rely on Foreign based players-Siasia

    National U-23 Head Coach Samson Siasia has vowed not to rely on the foreign based players as his team begin preparations for the African qualifiers of the 2016 Olympic games. The qualifiers hold in Senegal.

    Siaone as he is fondly called by his admirers said: “We are going to look at everywhere both home and abroad to get those players that would fit into our plans. Because, the problems with the foreign based players is that if you depend on them, and their clubs fail to release them for the competition, you would become confused. It is better we rely on our home based players who will always be there for us anytime you need them.

    ” Look at what happened to us with the case of Godwin Saviour and Taiwo Awoniyi at the just concluded All African Games, where they pleaded with us to just allow them to go and sign for the clubs and return to join the team. But, the clubs said the competition is not on the FIFA calendar, and that was all. But I still feel that something can be done. Because, we cannot stop them from going to Europe. Many of them are breadwinners in their families, and they also need to develop their games. If you disallow them, they will look at it as if you don’t want their progress. What we can do is to have an agreement with the clubs and the players, that if their services are needed, they should be released. Once, we have that proper agreement, the players would be released,” he said.

    The former Julius Berger of Lagos striker said: “The Olympic qualifier is another ball game all together. We have seen our loop holes in Congo, and are going to correct them before the qulifiers in Senegal and ensure we pick one of the tickets for the Olympic games.”

  • Foreign portfolio flow hits N778b in eight months

    Foreign portfolio transactions totalled N777.59 billion in the first eight months of this year as foreign investors continued to dominate transactions at the Nigerian capital market.

    The latest report on foreign portfolio investment (FPI) in Nigeria also showed that speculative foreign portfolio transactions might have contributed significantly to the sustained recession at the Nigerian stock market.

    The eight-month report for the period ended August 31, 2015, released yesterday, indicated that foreign investors accounted for 54.36 per cent of total transaction value during the period but the larger proportion of foreign portfolio transactions were outflows rather than inflows. The preponderance of sale transactions to buy transactions by the foreign investors left Nigeria with a deficit FPI position of N43.39 billion during the eight-month period.

    Total foreign portfolio outflow stood at N410.49 billion over the eight-month period, representing 52.8 per cent of the total foreign portfolio transactions of N777.59 billion. Total foreign inflow totalled N367.10 billion, 47.2 per cent of total foreign flow. Domestic investors accounted for N652.92 billion, 45.64 per cent of the market’s total transaction of N1.43 trillion during the eight-month period.

    The FPI report, coordinated by the Nigerian Stock Exchange (NSE), uses two key indicators-inflows and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy.

    Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE. The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active and major investment bankers, stockbrokers, custodians and other capital market operators.

    In what appeared to underline the steep decline in the stock market over the months, month-on-month analysis showed continuous trend of deficit FPI position. Total foreign inflow in August stood at N33.06 billion as against outflow of N48.07 billion, bringing total foreign transactions to N81.13 billion. Domestic investors contributed N64.56 billion, representing 44.31 per cent of the total transactions of N145.69 billion.

    Total transactions in July stood at N170.83 billion, consisting of N107.47 billion from foreign investors’ transactions and N63.36 billion from domestic investors, a ratio of 62.91 per cent to 37.09 per cent. Foreign transactions however included N58.83 billion outflow and N48.64 billion inflow, indicating a deficit of N10.19 billion.

    The eight-month FPI report is broadly in line with the half-year report, which had shown that about 52 per cent of total foreign transaction value were divestments. Foreign investors, who dominated the Nigerian capital market, had taken out more funds than they invested in the first half as investors waited for the political transition and clear macroeconomic and monetary policy direction of the new government.

    Total foreign portfolio investment outflow in the first half stood at N303.59 billion as against inflow of N285.40 billion, representing a deficit of N18.2 billion. The half-year deficit represents a relatively larger value given the significant undervaluation of the Nigerian equities and the extended deficit Nigeria had suffered since 2013.

     

     

    Nigeria had recorded a net foreign portfolio deficit of N154.14 billion in 2014, overriding a modest positive net flow of N20.48 billion recorded in 2013. The 12-month foreign portfolio investment report for 2014 had shown that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014. In 2013, total foreign inflow stood at N531.26 billion compared with outflow of N510.78 billion.

    The six-month report for the period ended June 30, 2015 showed that foreign portfolio investors accounted for about 53 per cent of total transaction value during the period while domestic investors accounted for 47 per cent. Total transactions stood at N1.114 trillion, with domestic investors accounting for N525 billion.

    The report however showed a month-on-month recovery in June. Total foreign inflow stood at N42.67 billion as against outflow of N26.98 billion in June, totaling N69.65 billion. Total transactions stood at N203.45 billion, with domestic investors contributing N133.80 billion. The foreign-domestic ratio stood at 34.24 per cent/65.76 per cent in June.

    In May, total foreign inflow had stood at N38 billion as against outflow of N41.77 billion, totaling N79.77 billion. Total transactions thus stood at N145.45 billion, with domestic investors accounting for N65.68 billion. Foreign investors accounted for 54.84 per cent while domestic investors accounted for 45.16 per cent.

    The market had recorded its first positive flow in April, after successive declines throughout the first quarter. Total foreign inflow rose to N54.20 billion in April as against outflow of N49.75 billion, representing a modest positive net inflow of about N4.45 billion. Total foreign transactions thus stood at N103.95 billion as against total domestic transactions of N102.91 billion during the month.

    In March, foreign portfolio outflows of N52.41 billion outpaced inflows of N50.15 billion. The first quarter had seen steady foreign portfolio deficits as investors weighed macroeconomic and political risks. Foreign outflows totaled N81.60 billion in February 2015 as against inflow of N52.35 billion, indicating a significant increase on the downtrend that started the year when foreign portfolio outflow was N51.08 billion against inflow of N48.03 billion.

    The 12-month foreign portfolio investment report for 2014 had shown that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014, representing a net deficit of N154.14 billion. In 2013, total foreign inflow stood at N531.26 trillion compared with outflow of N510.78 trillion, leaving a positive balance of N20.48 billion.

     

  • Fidson partners foreign firms on product marketing

    Fidson Healthcare Plc has partnered United States (US) firms – Immune Therapeutics, GB Pharma and American Hospitals & Resort (AHAR) – on the marketing and distribution of a new drug, LodonalTM.

    The drug is patent-protected because it is indicated for the management of patients with immune-compromising diseases.

    The deal will leverage Fidson’s strong and experienced marketing base, robust distribution channels and efficient customer and technical support services to promote the drug in Nigeria. The distribution will become effective, upon completion of the ongoing NAFDAC approved 90-day bridging trial evaluating the efficacy and safety of the product.

    Its Managing Director, Dr Fidelis Ayebae, said: “Fidson is truly excited about this collaboration with Immune Therapeutics and GB Pharma/AHAR. We know that success in this industry going into the future will be dependent on having the right partnerships, and we could not have asked for better partners at this stage of our growth. The international experience of Immune Therapeutics and GB Pharma/AHAR in different markets, and their strong commitment to research will be of immense benefit to our company. Likewise, Fidson’s towering presence in the Nigeria Pharma space will open a great door for the group to access one of the biggest and most rewarding markets in Africa.”

    This partnership is another strategic approach by the management of Fidson Healthcare Plc, to further strengthen the company’s growth. It also comes on the heels of the recent visit by President Muhammadu Buhari to the United States and President Barack Obama. The significance is monumental as a concrete symbol of US-Nigerian commerce in a non-oil/gas related sector and a show case for the future of local manufacturing of quality pharmaceuticals on the continent.

    President/Chief Executive Officer, GB Pharma, Dr. Gloria Herndon said: “This is the crescendo of a great masterpiece that partnership of GB Pharma, American Hospitals & Resorts, Immune Therapeutics, each with its distinct role. Fidson Healthcare markets and distributes throughout the extensive Nigerian Network. We feel that Nigeria and US bilateral relationship will benefit from this amazing initiative that will enhance the health and wellbeing of people all over the world. This is the spirit of collaboration that President Obama and President Buhari were talking about during the State visit.”

    Fidson Healthcare, which was recently recognised by Frost & Sullivan as the recipient of her ‘2014 Growth Excellence Leadership Award in the pharmaceutical industry, recorded sales of N9.7 billion in 2014 financial year.

    The award was in recognition of the company’s consistent performance in the pharmaceutical sector, which has seen its revenues rise at a 15 per cent CAGR over the last five years.

    The company has also won other corporate awards, including the Financial Standard ‘Pharmaceutical Sector Leader’ Award in 2008 and the ‘Nigerian Pharmaceutical Company of the Year’ at the Nigerian Healthcare Excellence Awards (NHEA) last year. Fidson’s definitive growth and consistent performance in the Nigerian stock market also earned her CEO the 2014 BusinessDay Top 25 CEOs Award, which the company has won consecutively for two years.

    To offer options in manufacturing and grow its product portflio, Fidson will inaugurate a N7.5 billion manufacturing plant this year. The new facility will double the company’s production capacity and will also for the first time, add intravenous fluids to Fidson’s product portfolio. The facility is built to conform to the World Health Organisation (Geneva)-Good Manufacturing Practice (WHO-GMP) standards.

    AHAR Chief Executive Officer, Dr Richard Afonja said: “We are well positioned to effect this novel approach to treating HIV/AIDS and other immune compromised diseases in the whole of Africa, starting with Nigeria. Bringing Fidson on board will enhance the facilitation of getting this much needed treatment approach for these conditions.”

    To achieve her strategic imperative of improving her products and consolidate her market position, Fidson has continued to invest in research and development across various disease areas. This has seen her record a number of firsts, key among which was becoming the first company in sub-Saharan Africa to manufacture antiretroviral drugs in 2005.

    The company has over 200 products across several therapeutic classes, which cut across anti-infectives, gastrointestinal, antiretroviral, anti-malarial, cardiovascular, analgesic, haematinics and supplements.

  • Ambode’s quest for foreign direct investment laudable

    The quest for Foreign Direct Investment (FDI) by the Governor of Lagos State, Mr. Akinwumi Ambode is part of the larger plan to make the Lagos megacity a functional one. Lagos State, with a projected population of over 21million people, is a destination of choice to majority of Nigerians.

    It is seen as a state of unlimited opportunities and as such movement of young adults to the state in search of greener pastures is a daily occurrence. The collapse of the economy, especially the closure of manufacturing industries over time due largely to the absence of power and unfavourable investment climate, has had adverse effects on the security of lives and property of the people.

    The first responsibility of the government, as we all know, is to ensure the security of its people and their welfare. The most paramount need of man is food and nothing is too much a sacrifice to put food on the table of the people. After that, secondary issues that are likely to arise from the decision taken or being contemplated can be addressed.

    The reception which Governor Ambode accorded the Walmart delegation and a promise to create enabling environment for their business was borne out of the zeal to seek job opportunities for our young men and women, literates and illiterates. There is no gainsaying that our youth have become vulnerable to being lured into various types of anti-social activities hitherto alien to our culture.

    From high-degree human and drug trafficking, prostitution both at home and abroad, kidnapping, armed robbery, cyber fraud and drug addiction to mention but a few, our country has become a fertile recruitment ground for terrorist organisations. As the popular saying goes, “an idle mind is a devil’s workshop”. This is a frontline problem that must be tackled headlong and a multifarious approach must be employed to achieve desired result.

    I hold this position against the background of the piece titled “As Ambode lusts after Wal-Mart” authored by Abimbola Adelakun and published in the Punch of Thursday August 13, 2015. The writer, to my mind, sought to advise the governor to “err on the side of caution”.

    Yes, good advice, we need to be circumspect and weigh all options properly so that we don’t further impoverish the people we sought to lift from poverty. However, some of the assertions or reasons adduced to buttress the seeming disadvantages are not the same with the conditions in the United States used as the country of comparison.

    To begin with, the Venezuelan Ambassador to Nigeria, Enrique FernandoArundell, might have told the late Mrs. Dora Akinyuli the home truth by saying that we should look inward and build our country rather than wait for others to do it for us. Statement of fact, but a Yoruba adage says “you can’t in face of starvation continue to say you won’t eat from the pot of your enemy when your friends have no food to offer you”.

    True, we have many stupendously rich Nigerians who stack their billions in foreign accounts or prefer to invest outside Nigeria for God knows why. But can we reasonably close our eyes to foreigners who have resources to invest in the country to create the much needed job opportunities and grow the economy just because some of our people refuse to invest in her? I don’t think so.

    Walmart may be a retail outfit like Shoprite but its investment in Nigeria can only be a blessing to the nation and the particular location at this crucial time. There are not many retail outlets in the format of these giants in Nigeria that may go under in the face of competition. Our trading activities still largely take place in the various local markets where the traders ply their trade in one or two commodities.  The patronage of supermarkets as we know them is largely by the elites and the middle class that form a minute sector of the population. The larger majority still prefer the local haggling system.

    The population of Lagos State stands it in good stead to host the world-renowned retail outlet as its population is well stratified such that all contending forces will consistently find their share of the market without posing threat to others. After all, with all the boutiques in the state, big and small, the Okrika (fairly used clothes) vendors still smile to the banks; the Gutter Ariyofabric market still booms despite the fact that large a group of the elite wear English dresses during the week.

    Those of us who know what StrabagYard, the place where Ikeja Mall is located today used to be will not agree that Walmart will be a disservice to Lagos. The Ikeja Mall is of world standard, the jobs created in the course of construction and those in the employment of the various organisations operating therein and the multiplier effect on the economy cannot be overemphasised. To have the likes of Walmart to compete with Shoprite can only make it more efficient and people- friendly.

    Of major interest is the fact that Walmart is just one of the many investors being wooed. Manufacturing industries that will return Lagos to the position of industrial hub of the nation, employ large number of people, boost creation and development of many Small and Medium Scale industries are the prime targets and will berth in good time to reverse the trend of our unemployment and the attendant negative consequences.

    • Ogundeji wrote in from Alausa-Ikeja, Lagos

  • Shock as Rep withdraws motion to probe treatment of Nigerians by foreign companies

    The House of Representatives was denied the opportunity of intervening on the reported inhuman treatment Nigerians working in some foreign companies operating in Nigeria were subjected to.

    A motion to address the issue entitled: ‘Urgent need to curb unwholesome practices of Chinese, Indian and Lebanese companies in Nigeria, was withdrawn by the sponsor, Segun Adekola (PDP, Ekiti).

    To the surprise of some lawmakers, who were prepared for the debate, Adekola took the leave of the House to withdraw the motion.

    The motion was listed third for debate on the Order paper yesterday.

    In accordance with House rules, the Speaker, Yakubu Dogara granted the request.

    In his argument of the motion, as contained on the Order paper, the lawmaker said a media report on an incident at Wempo where it was alleged that a Nigerian worker’s head got smashed by a faulty machine at Wempo called for concern.

    The lawmaker regretted that incidents of nonchalance to Nigerian workers’ welfare is rampart with foreign companies operating in the country, with less than impressive action from relevant authorities.

    He argued that some of the foreign companies have little regard for the safety of their workers, many of whom had died or got maimed in the work place due to gross negligence by the companies managements.

    As stated on the Order paper, the lawmaker expressed concern that some of the foreign companies act with impunity by subjecting their workers to degrading working conditions and a near absence of safety measures in flagrant disobedience of Nigerian Labour laws.

    In his prayers, Adekola wanted the House to mandate the Committee on Labour, Employment and Productivity, when constituted to investigate the incident at Wempo and other unwholesome practices of foreign companies operating in Nigeria with a view to bringing an end to the unhealthy trends.

  • Naira to back foreign exchange demand, says CBN

    Naira to back foreign exchange demand, says CBN

    •Demands 48hrs advance payment 

    The Central Bank of Nigeria (CBN), in its sustained drive to defend the local currency, has directed that all foreign exchange demand must now be backed by naira cover 48 hours before the request is sent to the apex bank’s intervention window.

    The order which was communicated to the Deposit Money Banks yesterday, The Nation investigation revealed, is to take effect from today.

    Consequently, some of the banks, in implementing the directive, have notified their  customers who intend to purchase foreign exchange through the CBN intervention window, “to make funds available in their accounts two working days before each intervention day.”

    In a document obtained by The Nation, one of the banks said: “Given the effective date of 6th August for this new arrangement, collation for intervention window of  10th August 2015 will be done on 6th August, 2015 when the bank will be expected to move funds to the CBN position.

    “Kindly ensure that all customers’ requests are received in Trade Services  on or before 12noon two days preceding their intended CBN intervention window,” the financial house stated, adding that ”in case of matured obligations that will require the booking of naira IFF (Import Finance Facility) to fund account, booking may be deferred until successful FX (foreign exchange) allocation in which case, Trade will debit customer’s account naira equivalent of FX sold, whether or not the account is adequately funded, while the Branch/Relationship Managers will be required to follow up with the relevant department, or unit for regularisation with same value date as original debit.”

    The document clearly stated that bids supported with incomplete documentation will not be processed.

    It said apart from the exception earlier highlighted for matured obligations,  bids presented on unfunded account will not be attended, it stressed.

  • Foreign investors eye Bayelsa’s Atala oil field

    Governor Seriake Dickson’s effort to develop the state-owned Atala Field has begun to yield fruits as some foreign investors have indicated interest in the asset.

    During the Bayelsa State Investment and Economic Forum held in Yenagoa, the state capital, promoters of some foreign companies said they had registered to participate in the forum to meet with officials of the state government to participated in the deal.

    One of the promoters from Houston, Texas, United States, said the meeting was necessary for him to showcase the outcome of his visit to his government.

    “We are quite aware of the short period of turning around the fortune of Atala within two years of the takeover by Century Exploration and Production Limited (CEPL) through the initiative of Dickson. Since the government has no business doing business, we are interested in replicating strategies adopted by Dickson in other sectors in the state and in Nigeria,” a source at CEPL said.

    Dickson’s restoration plan for Bayelsa led to the state’s entry into the nation’s oil and gas map as the first state that brought to production its oil field – Atala field. This is one of the achievements re2corded by the governor since his assumption of duties on February 14, 2012.

    Atala Oil Field is located in oil mining lease (OML) 46, and was among the 24 marginal fields allocated to 31 indigenous companies and state owned companies during the marginal fields licensing round in 2003. This makes Atala one of the eight fields developed by investors to production level in the 24 fields. It contributes one per cent to Nigeria’s daily crude oil production.

    Production by Atala Field, according to the source, was made possible by the engagement of Century Exploration and Production Limited (CEPL) by Dickson as the technical and funding partner on assumption of office in 2012. The breakdown of the participatory interest shows that Bayelsa Oil Company Limited (BOCL) owns 51 per cent, CEPL-29 per cent and Hardy Oil, 20 per cent.

    Atala 1 well was re-entered, completed, tested and rig released on Aug 11, last year. The extended well test commenced on December 20, 2014 with anticipated peak production of 6,000 barrels of oil per day (bopd) but currently the firm aims to achieve production of 5,000 bopd before second quarter of next year. The field has recorded estimated cumulative production of about 60,000 barrels stored in barges. This was test production of less than 20 days and in good position to commence evacuation for export. All the above were carried out with the highest health, safety and environment standards with 100 per cent local content and engagement of state owned support personnel, the source said.

    Another foreign investor at the forum said: “The Atala Field is a role model for oil industry development for Public-Private Partnership (PPP). The fact that the state government used local companies as partner shows that there is lot of good things to learn from Bayelsa example. We hope to continue to our relationship with Bayelsa.”

    The Managing Director Channel Oil Petroleum Mr. Ebibomo Timitimi, who participated in the forum, praised Dickson’s good initiative to transform Bayelsa from  a civil service state to a leading industrial centre in Africa.

    He noted that there are various investment initiatives by Dickson that were the major attraction of some foreign firms, which seek to partner the state and make fresh investment.

  • Bank barred from accepting foreign currency deposits

    Bank barred from accepting foreign currency deposits

    The Central Bank of Nigeria (CBN) yesterday stopped banks from accepting foreign currency cash deposits into customers’ accounts.

    A circular to all authorised dealers and general public titled: ‘Developments in the Foreign Exchange Market- Re: Cash Deposit Into Domiciliary Accounts’ said the regulator has considered the recent statements by Deposit Money Banks (DMBs) concerning the large volume of foreign currencies in their vaults and the decision to stop accepting foreign currency cash deposits into customers’ accounts as a welcome development.

    Its Director Trade and Exchange Department, Olakanmi I. Gbadamosi who signed the circular, said the policy shift is in line with its continued efforts to stop illicit financial flows in the Nigerian banking system which aligns with the anti-money laundering stance of the Federal Government.

    He explained that for foreign currency cash lodgments made before yesterday, the account holder has the option to either withdraw his or her foreign currency cash or the naira  equivalent.

    “For the avoidance of doubt, only wire transfers to and from Domiciliary Accounts are henceforth permissible,” he said.

    The CBN urged individuals that wish to source foreign currency for eligible and legitimate purposes such as Business Travel Allowances, Personal Travel Allowances medical, mortgage, school fees, goods among others to do so through recognized channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for “visible” transactions.