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Tag: Furore

  • Furore over alleged attempt to circumcise man’s daughters

    A man, Shoyemi Adewale, has cried out after he was allegedly frequently assaulted and brutalised by his family members over his failure to present his daughters for circumcision.

    The latest attack happened on March 27, while Adewale was on a trip to Abeokuta, Ogun State capital.

    The family members were said to have become angry after Adewale refused that his daughters be circumcised in line with his family’s age-long traditional practice laden with rituals.

    Last year, he was also allegedly attacked by some of his family members along Oba Akran Road, Ikeja, Lagos while he was returning home from work.

    ‘’This is the second attack on me. The first attack happened in Lagos around December last year over the same issue. The recent attack took place while I was on my way to pick up application form for doctorate degree at the Federal University of Agriculture, Abeokuta, Ogun State, on March 27 this year.

    ‘’ I was assaulted by four family members for refusing to disclose the whereabouts of my daughters and not bringing them for circumcision. My car was even vandalised in the process, though I made a police report, I knew much won’t come out of it as I was told(by the police) to go and settle it in the family way while none of my attackers was arrested. ‘’

    Adewale noted that his wife, Olabisi, had been subjected to series of assault and brutality by his siblings in recent past.

    ‘’In July 2017, while I was on a trip outside Lagos, my family members went to my house and assaulted my wife for refusing to hand over our daughters for circumcision. My wife suffered swollen head and body bruises in the attack.

    Read also: FGM: 137 Osun communities abandon the cutting tradition

    ‘’Ever since then, we lived in fear until I decided to move them to a different location, but after some time my family members ended up knowing my wife’s whereabouts and continued to harass her until my wife made a drastic decision to live very far away.’’

    He said his father had recently insisted that he won’t get away with preventing his daughters from being circumcised because of certain negative spiritual consequences and had threatened to remove his name from his will.

    He added: ‘’I had changed addresses many times, but I was surprised how quick they knew my new address. There was a time in 2012 when I asked my wife to take my daughter to her brother’s residence in Bayelsa State. I was shocked to find out that she was trailed to a bus station there and assaulted again. She was saved by her brother and passers-by. But her brother was very unlucky. One of the assailants attacked him with a cutlass and almost cut off his arm. My wife quickly returned to Lagos, from where she went into hiding.’’

    Adewale said he was shocked that the assault could be unleashed on him.

    ‘’My wife is more than ever fearful after she received the news of the latest assault on me, because she never thought it would come to that.”

  • Furore over parallel congresses in Delta APC

    The crisis rocking the Delta State All Progressives Congress (APC) has escalated, following the parallel congresses held by the two groups struggling for the soul of the party. Correspondent OKUNGBOWA AIWERIE examines the logjam and its effects on the troubled chapter.

    All is not well with the opposition All Progressives Congress (APC) in Delta State. Following the emergence of parallel executive council members at the ward local government  and state levels, the party crisis has escalated. Two factions are fighting for the soul of the party.

    The dramatis personae in the first camp are Minister of State for Petroleum Dr. Ibe Kachukwu ,  ex-governorship candidate and leader of the party Olorogun O’tega Emerhor, Chief Hyacinth Enuha, ex-Speaker Victor Ochei, Dr. Cairo Ojugbouh, and Cyril Ogodo.

    Others are Prof Pat Utomi, Dr. Leroy and Dr. Charles Nwandiani.

    In the second camp are Senator Ovie Omo-Agege, Chief Frank Kokori, Chief Great Ogboru, Helen Uboh, Mrs. Mariam Alli, and Mr. Jones Erue

    The crux of the matter is the struggle for the control of party structure, following the inability of the dramatis personae to reach an agreement.

    The crisis that have bedeviled the Delta APC congress started at the ward  and local government levels when some party chieftains alleged that the chairman of the Ward and Local Government Congress Committee Sani Dododo, had violated the guidelines, thereby compromising the entire process.

    The national leadership of the party sacked the controversial chairman.

    Dododo allegedly connived with some interests in the party to hijack the process and unilaterally announced doctored results for  the ward congresses, without the imput or knowledge of the six  members of his committee.

    The national leadership of the party replaced Dododo with a new committee chairman, Hon Emmanuel Chindah, who supervised the subsequent exercise.

    Following the sack of Dododo as chairman of the committee by the National Working Committee (NWC), the stage was set for further crisis, which led to parallel congresses.

    Matters came to a head during the congress when a faction, led by senator Ovie Omo-Agege, despite a court order restraining them from conducting the state congress, went ahead to return the incumbent chairman Mr. Jones Erue.

    The congress, which held at St. Muluamba Secondary School, Okpanam, Asaba was conducted by the Senator Olugbenga Obadara led committee.

    The National Working Committee of the party appointed the committee to conduct the congress.

    The congress, which was conducted by voice affirmation, led to the return of Jones Erue unopposed. Others elected officers include: Mr Elvis Ayemanor, Deputy Chairman, Mr Chidi Okonji as state Secretary.

    The congress was attended by APC Senator Ovie Omo-Agege, Chief Great Ogboru, Mrs. Marian Ali, and Chief Frank Kokori among other party chieftains.

    While addressing reporters,  shortly after the exercise, Omo-Agege said the Obadara-led committee was empowered to conduct the congress and that there was no counter-directive to that effect.

    Omo-Agege said any other committee outside the Senator Obadara committee was null and void, and their action was of no consequences.

    But, in the parallel state congress led by Emerhor, ex- Deputy Chairman of the Delta State APC, Mr. Cyril Ogodo, emerged as state chairman.

    The congress held at the play- ground of the temporary site of the Federal College of Education (Technical), Asaba, was peaceful.

    Ogodor polled 731 votes to defeat Mr. Fred Obe, who polled 99 votes in the delegates’ election.

    The other positions were returned unopposed through voice affirmation.

    The congress was conducted by a five-member committee from the national secretariat of the party. Members of the committee include Eugene Odoh (chairman), John Dabwan (secretary), Jonathan Jibril, Ibrahim Nagogo and Mezia Linus (members).

    Ogodo extended an olive branch to his opponents and the faction led by Omo-Agege, saying that now was the time to unite the party ahead of the next year’s general elections.

    The leader of the party Emerhor, who addressed reporters at the end of the exercise described it as the authentic congress, saying that the presence of party chieftains testified to it.

    His words: ”I am here, Victor Ochei, Cairo Ojougboh, Hyacinth Enuha, Pat Utomi is on his way, Dr. Leroy, we are here. The minister, Dr. Ibe Kachukwu would have been here but he travelled”.

    “We cannot afford the bickering and division among ourselves. After today’s congress, we will reach out to others who feel aggrieved because we have the People Democratic Party (PDP) as a common enemy in the 2019 general elections to contend with.

    “But, one thing is that anything outside this exercise is null and void. You can see the democratic process as conducted by the assigned committee from Abuja and witnessed by officials of the Independent National Electoral Commission (INEC).”

    It is yet unclear whether the contending party men will sheathe their swords in the overall interest of the party as the 2019 governorship election draws near.

     

  • Furore over registration, licensing of IT contractors

    Furore over registration, licensing of IT contractors

    Two groups, the Nigerian Computer Society (NCS) and the National Information Technology Development Agency (NITDA), are at loggerheads over the registration and licensing of Information Technology (IT) contractors. LUCAS AJANAKU writes on what the development portends to the industry.

    On assumption of office as Director-General, National Information Technology Development Agency (NITDA), Dr Isa Ali Ibrahim Pantami promised to work tirelessly to realise the  mandates of the agency, which was formed on April 18, 2001, but formally got its legal teeth through the NITDA Act of 2007.

    In his inuaugural address to workers, Dr Pantami said: “NITDA, as you all know, is a very strategic agency. It is one of the most knowledge-based government institutions that requires a harmonious blend of knowledge and creativity.

    Section 6 of the enabling law establishing the NITDA and the Nigeria Outsourcing Policy and Institutional Framework for Nigeria (Paragraph 3.3) clearly encapsulates the general thrust of the objectives and functions of the agency. To paraphrase Section 6, the law empowers the agency to plan, develop, co-ordinate and monitor all matters relating to IT practices, activities and systems in Nigeria.

    This is further reinforced in the National Outsourcing Policy and Institutional Framework for Nigeria, which provides that: “The overall policy objective is the promotion of an enabling institutional, legal, regulatory, technological and infrastructural environment for the sustainable development of the outsourcing sector in Nigeria.”

    Perhaps pursuant to his desire to work his talk, he raised the alarm over the failure of Information Technology (IT) projects in government Ministries, Departments and Agencies (MDAs). He lamented that 95 per cent of IT projects’ security in the MDAs is compromised.

    Pantami said part of the measures would be the licensing of all IT contractors and service providers for the purposes of procurements, public private partnerships (PPP) and other forms of engagements.

    Pantami said: “The management of NITDA would like to bring to the attention of all IT contractors, MDAs, other government establishments, the organised private sector (OPS) and the general public that it has put measures in place to register and license all IT contractors and service providers for the purposes of procurements, PPPs and other forms of engagement with government establishments and private sector.

    “The Agency is dismayed at the raising number of failing IT projects within Federal MDAs and other government establishments. NITDA’s investigations revealed that over 90 per cent of IT projects in MDAs and other government establishments failed and more than 95 per cent of their security is compromised.

    “In order to curtail this and in line with the Agency’s mandate and the recent Presidential Executive Order 005 for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology, as mandated by President Muhammadu Buhari, the registration and licensing of IT contractors and service providers have become expedient.”

    He continued:”The process aims at ensuring the emergence of robust indigenous IT service providers and contractors, guaranteeing the delivery of sustainable IT projects as well as engendering professionalism in the IT service industry.

    “The process will also ensure that IT projects in MDAs will only be executed by indigenous companies where in-country capacity exists. As part of the process, NITDA will monitor and ensure the capacity development of Nigerians employed by IT contractors and other service providers.

    “Furthermore, the Agency will, in conjunction with relevant agencies, investigate any project that has failed to determine the root cause of the failure and apply sanctions where necessary or to refer such cases to other relevant authorities.

    “All firms desirous of providing IT services and contracts to Federal MDAs and other government establishments are advised to initiate the registration process with immediate effect. Guidelines on the registration process can be accessed by visiting NITDA’s website.   Alternatively, an applicantion can be written to the agency in order to initiate the process.

    He added:”Interested entities should note that only NITDA registered firms and companies will be recognised as having capabilities for the provision of IT services to Federal MDAs and other government establishments. All MDAs and other government establishments are advised to consult NITDA before any IT firm is engaged for the purpose of providing IT related services.”

    Reacting to the development, the Nigerian Computer Society (NCS) kicked against Pantami’s move to register and licence IT contractors in the country.

    Its President, Adesola Aderounmu said it is not part of NITDA’s mandate because as the name suggests the agency is to plan, promote and develop regulatory framework and guidelines as stated in NITDA Act 2007, Section 6a.

    “The Computer Professionals Registration Council of Nigeria (CPN) Act 49 of 1993 is saddled with the mandate to register, license, supervise and control the profession as stated in CPN Act Section 1 (2).”

    Prof Aderounmu warned that the NITDA’s policy statement was capable of confusing the general public to create an uncoordinated approach to policy issues and both Acts of Parliament as stated earlier. NCS, he said, believes that NITDA’s mandate is to ensure seamless cooperation and interaction towards the use of IT as a development tool for the country.

    The NCS commended the approach and wisdom of the Presidential Executive Order 005 Buhari, which emphasises professionalism.  “The Public Procurement Act 2007 with particular reference to Section 19 if properly implemented will promote best practices professionally. “On a related note the CPN Act Section 22, states that failure to engage professional practitioners is an offence in Nigeria punishable under the Act.

    “We, therefore, advise NITDA in our advocacy capacity not to embark on registering and licensing of IT contractors and service providers (Registered IT professionals) activities and instead concentrate on developmental issues, which we believe can be jointly achieved collaboratively. CPN is the only agency with the mandate to register and license IT professionals and contractors in Nigeria.

    NITDA has said it will go ahead with the registration and licensing of contractors, saying several indigenous contractors and service providers have commenced the process of registration with NITDA, adding that the agency appreciates all those that have initiated the process. “It clearly shows their commitment to the growth and development of the IT sector,” NITDA said.

    While it said NCS was correct that the Computer Professionals (Registration Council) of Nigeria as a council has the mandate to control and supervise the (Computing) profession as provided by Section 1(2) of the Computer Professionals (Registration council of Nigeria) Act, it argued that the registration of IT contractors and service providers by NITDA is in line with its mandate as specifically stated in Section 6 (a,f) NITDA Act 2007.

    It argued further that the section mandates it to create a framework for the planning, research, development, standardisation, application, coordination, monitoring, evaluation and regulation of IT practices, activities and systems in Nigeria. It is also to render advisory services on all IT matters to the public and private sectors.

    “Therefore, it is within the regulatory and developmental role of the NITDA to ensure that IT contractual practices and project delivery in the public sector are done in accordance with best practices, within acceptable standards and in the interest of the development of IT in Nigeria.

    “Furthermore, the agency, as the clearance house for IT projects of the Federal Government, has the responsibility to ensure that IT projects are executed by professional firms. NITDA as a regulator will not relent in its quest to improve IT practices and expose projects that are ill conceived or poorly executed,” the agency said.

    The agency assured all that it will not allow sub-standard projects in ministries, departments and agencies (MDAs) being executed by companies that have limited or no capacities. “The registration process will therefore ensure professionalism in IT service delivery, value for national investments in IT and to weed out quacks who may seek to take advantage of public procurement for selfish interests. The process will also provide a detailed database of indigenous IT capabilities in Nigeria to guide the government in planning IT projects and for the promotion of Nigerian content through appropriate use of public sector spend in IT. Furthermore, the process will lead to a review of failed projects with a view to curating knowledge on factors that may have led to the failure. NITDA in partnership with other relevant authorities shall take appropriate action where fraud may have led to failure,” NITDA explained.

    The NCS has insisted that only the CPN has power to register and licence IT contractors. Prof Aderounmu, who quoted the relevant sections of the law that created CPN, said NITDA is an agency charged with the responsibility of developing the appropriate framework and policies for the smooth running of the industry.

    He said if public sector IT projects had been awarded to contractors registered with CPN, they most likely would not have failed on the massive scale the NITDA DG alleged. He added that the appropriate step the NITDA sould have taken was to report the erring contractors to the CPN and not usurping the duties constitutionally assigned to CPN.

    He said the provisions of Act 49 of June 1993 gave the CPN the mandate to register and licence IT contractors because Section 2(2) of the Act empowers it to register members.

    “Persons admitted to the membership of the profession shall be registered as members of the profession in various categories, including the corporate member category; (under) CPN Act section 8(1), CPN has the mandate to keep, publish, print the list of all registered professionals and the list is available for inspection for members of the public at all reasonable time. This has been in operation since 1998; while CPN Act section 18(2b) deals with licensing. It prescribes the form of licence to be issued annually.”

    “The call for another registration and licensing of IT contractors by NITDA is tantamount to double registration, which is contrary to the Federal Government’s policy on ease of doing business. Furthermore it may lead to the registration of quacks and non-professionals.

    “Failed and substandard public IT projects cited by NITDA should have been reported to CPN for necessary action. IT contracts should only be awarded to CPN registered members; the list is available online and in accordance with Public Procurement Act 2007.

    “Registering and licensing IT contractors is not within the mandate of NITDA which is to create framework, guidelines and policy to develop IT. When properly implemented, it will solve the problem of unemployment in Nigeria which is the focus of the present administration,” Prof Aderounmu said.

     

     

  • Furore over INEC timetable

    SIR: The amendment to the Electoral Act, 2010 continues to dominate discussions across the country. Ordinarily, this should be expected as the general election is fast approaching and many events would naturally be unfolding.

    From the INEC schedule, the presidential and National Assembly elections would hold on February 16, 2019; gubernatorial and state Houses of Assembly elections on March 2, 2019. But with the just-concluded amendment by the National Assembly, there is a reversal in the order of elections with the National Assembly elections holding first; elections into the state houses of assembly and governorship second, while the presidential election would come last.

    Critics believe that Section 76 of the 1999 Constitution empowers INEC to organise elections. Second, the impending reordering of the sequence of elections would have dire cost implications on both public and business life of the nation, considering the compulsory restriction of human and vehicular movements on election days. They also allege that the idea was selfish on the part of the legislators as the amendment was never thoroughly discussed.

    The amendment is a welcome development – good for our polity. There is nothing unconstitutional in what the federal lawmakers are doing. However, one of three things may happen in the political terrain in next few weeks. First, the president may give his assent a most unlikely proposition; secondly, he may refuse his assent leaving the National Assembly the option of a veto. This too may not happen because of the sharp division among the lawmakers. Thirdly, legal action could be instituted by either party for the courts to come in and resolve the potential constitutional logjam. Of the three possibilities, the third option may hold sway. While I cannot accurately preempt what may happen next, one can confidently say that, if the amendment is passed into law, it would definitely add value to our electoral process.

    Beyond the amendment, focus should be centred on what still needs to be done to have fair, credible and transparent elections in Nigeria. These include adequate and timely release of funds to INEC; minimising voters’ apathy, especially among the elites; learning from past mistakes for improved electioneering; display of honesty, sincerity and determination by all stakeholders, among others. When we strive towards achieving these, the nation would actually be marching forward and seen to be entrenching the desired and solid democratic culture for good governance.

     

    • Adewale Kupoluyi,

    Federal University of Agriculture, Abeokuta.

  • Furore over Olubadan chieftaincy review

    Furore over Olubadan chieftaincy review

    The proposed review of the Olubadan Chieftaincy Law has pitched Oyo State Governor Abiola Ajimobi against some leading lights of the ancient town. The matter is now in court. But one of the parties, High Chief Lekan Balogun has withdrawn from the case. BISI OLADELE takes a look at the issue and traces how Ajimobi has been wading through such storm in the past six years.

    When Oyo State Governor Abiola Ajimobi inaugurated a judicial commission of inquiry on the proposed review the 1957 Olubadan Chieftaincy Declaration on May 19, all hell were let loose. Mnay criticised him for delving into an institution regarded as untouchable. Some believed the governor was over reaching himself, arguing that members of the Olubadan-in-Council, elders and others interested would take him on it.

    Indeed, two members of the council, High Chiefs Lekan Balogun and Rashidi Ladoja, sued the governor and the panel, arguing that they do not have the power to intervene in traditional chieftaincy matters. But at every turn, Ajimobi reiterated that he has no hidden agenda over the matter.

    The institution of the court case coincided with the celebration of Ajimobi’s sixth anniversary. As he moved round the state inaugurating projects, the governor emphasised that those opposing his move were only playing politics. He said he did not plan to prevent anyone from moving to the next rank on the Olubadan ladder.

    He insisted that his administration was working on the possibility of producing some beaded crown-wearing Obas in the city to add more honour and influence to the throne of the Olubadan.

    Last Wednesday, Ajimobi cart the carpet under the feet of those against the review.

    Earlier, the Central Council of Ibadan Indigenes (CCII) said it would not oppose the review if it does not demean the Olubadan throne. Its President, Chief Wole Akinwande, made the council’s stand known in an interview.

    During a visit by members of the Olubadan-in-Council to the governor in his office on Wednesday, something dramatic happened. The team was led by the Olubadan, Oba Saliu Adetunji. But Ladoja was not with them.

    Members of the council at the meeting were the Otun Olubadan High Chief Lekan Balogun, Ashipa Olubadan High Chief Eddy Oyewole, Ekerin Olubadn High Chief Abiodun Daisi and Ekarun Olubadan, High Chief Hamidu Ajibade.

    Others were Balogun of Ibadan land High Chief Owolabi Olakulehin, Otun Balogun High Chief Olufemi Olaifa, Osi  Balogun High Chief Tajudeen Ajibola, Ashipa Balogun, High Chief Lati Gbadamosi and the Ekarun Balogun High Chief Kola Adegbola.

    After the meeting, the monarch told reporters he was in full supported the review because he has confidence in Ajimobi’s ability to take steps that would bring credibility to the chieftaincy positions of Olubadan and its council members.

    Oba Adetunji said: “Our visit today is to put paid to the rumours and misgivings about the review of the Olubadan Chieftaincy Declaration.

    “We have come to show our sincere support to the governor and to let him know that we are on the same page with him as the review is for the progress of Ibadan and its people.’’

    The Otun Olubadan, High Chief Balogun, who joined Ladoja in the legal battle option, made a U-turn. He said the review was a welcome development, adding that his decision to choose the legal action was as a result of communication gap.

    His words: “Change is the only constant thing in life. There is nothing that is above change. The entire furore which had resulted from government’s move was due to communication gap but that has been resolved now.

    “Life is dialectical; things must be changing and we must all be growing with it. The government is quite right to have set up machinery to look into the law and see how it can be made better.

    “We believe it is a welcome development, especially with the kind of governor we have who is keenly interested in the growth and development of Ibadan land.”

    In the six years of Ajimobi as governor, he has dabbled into similar matters that are considered delicate.

    First was his intervention in the crisis that engulfed the Oyo State chapter of the National Union of Road Transport Workers (NURTW) which had snowballed into full scale violence; claiming lives regularly and casting Ibadan and Oyo State in the mound of a state of thugs and political hoodlums.

    The two immediate predecessors of Ajimobi failed in taming members of the union, a situation that made them look untouchable. Their factional leaders-Alhaji Lateef Akinsola (aka Tokyo), Mukaila Lamidi (aka Auxilliary) and Alhaji Lateef (aka Eleweomo) operated like heads of a republic within a larger republic. Popular motor parks such as Iwo Road, Gate, Molete and Beere usually recorded bloodbaths.

    But when a reprisal attack on a faction in Iwo Road on the night of June 4, 2011 led to the killing of many innocent commuters, including a final-year medical student, Ajimobi wielded the weight of executive power by banning activities of the union. He boxed the union into a limbo and went after the three dreaded leaders.

    Many residents and observers treated his reaction with disdain but Ajimobi stood by his decisions. He backed up law enforcement agents and ensured that none of the three factional leaders was able to perform his enterprise again. After the intervention of the national leadership of the union in 2012, the governor went for a neutral person in Alhaji Taofeek Oyernde (aka Fele) with a stern warning against any form of violence. His move finally sealed the much-needed peace within the union in Ibadan, the capital city since then.

    After removing the much-feared Tokyo and banning him, the latter made frantic efforts to return to the seat but Ajimobi prevailed. Auxiliary was later arrested and jailed for a criminal offence.

    In 2012, Ajimobi also challenged popular sentiment by forcing traders and commercial vehicles out of roadsides and unapproved locations to pave way for his urban renewal project. As expected, hues and cries pervaded the entire state, with traders and their sympathisers vowing to end the governor’s political career in 2015. They moved against him from several fronts, using the media and community channels.

    They described him as an enemy of progress, arguing that traders operate in such locations even in developed countries.

    Ibadan, the state capital, where the policy was most impactful, embarked on campaigns against Ajimobi and his urban renewal policy. Opposition politicians cashed in on the move and celebrated people’s ‘opposition’ to the governor.

    But Ajimobi remained resolute. He, however, built modern markets for traders and modern parks for commercial drivers to ensure they do not return to the roadside, causing traffic and tainting the city’s supposed beautiful landscape.  He sustained his policy as he battled sentiments left and right.

    In the end, he succeeded, though his support in the city plummeted as shown in the result of the 2015 election. Ajimobi only managed to defeat Ladoja with about 3,500 votes, only a fraction of what his wide lead in the 2011 election. Today, however, the city has come to realise and appreciate the importance and beauty of the policy.

    If there is any other sensitive decision Ajimobi has taken, it was the reform of education which saw each public secondary school have its own School Governing Board (SGB).

    When the governor started the move for the reform last year, teachers, students and other stakeholders opposed him. They even staged violent protests, saying the governor wanted to sell public schools to his cronies. Teachers went on strike. School pulpits became hoodlums of a sort. Some opinion leaders bought into the sentiment and joined them to criticise Ajimobi. They asked him to back down but Ajimobi was unmoved. He went on with the policy with the argument that government alone could no longer fund public schools effectively.

    Today, all stakeholders are hailing the new policy which creates a better future for public schools.

    Another delicate issue Ajimobi dabbled into was the implementation of the creation of local council development areas (LCDA). The LCDAs were created by the Lam Adesina administration in 2002 but the idea was abandoned due to the stance of the Federal Government at the time over federal allocation issues surrounding the idea.

    Successive administrations never ventured into the LCDA project until Ajimobi assumed office. Convinced that the project would expedite development at the grassroots, he went for it but drew the flak of opposing forces that included politicians and traditional rulers.

    But Ajimobi had his way at the end.

    Currently, there are 54 local governments and LCDAs in Oyo State instead of the original 33. This number excludes the LCDAs created in Oyo land over which government and traditional rulers are trying to find a lasting solution.

     

     

  • Furore over new bank charges

    Furore over new bank charges

    There are mixed feelings over the new bank charges on cash deposits and withdrawals by the apex bank with many lauding the policy regime as appropriate and others arguing that it may further discourage financial inclusion. Bukola Aroloye in this report examines the pros and cons

    Bank customers who are used to hauling cash around had better have a rethink as they are bound to pay so much to enjoy that luxury.

    That’s exactly the import of the directive issued to banks by the Central Bank of Nigeria (CBN) last February, whose implementation began effectively on April 1,2017, precisely over three weeks ago.

    Memo announcing the new mandate

    TThe CBN had on February 23rd, 2017, announced the reintroduction of charges on cash deposits and withdrawals in banks, which would take effect at different dates in different parts of the country.

    In a circular announcing the charges, Mr. Dipo Fatokun, Director, Banking and Payment System Department, CBN said: “Charges for cash deposit by individuals are as follows: Less than N500,000, zero charge; from N500,000 to N1 million, 1.5 per cent; from N1 million to N5 million, two per cent charge; above N5million, 3 per cent charge.

    “Charges for cash withdrawal by individuals are as follows: Less than N500,000, zero charge; From N500,000 to N1 million, two per cent; from N1 million to N5 million, 3 per cent charge; above N5 million, 7.5 per cent charge.

    “Charges for corporate cash deposit are as follow: Less than N3 million, zero charge; from N3 million to N10 million, two per cent; from N10 million to N40 million, three per cent; above N40 million, five per cent.

    “Charges for corporate cash withdrawal are as follows: Less than N3 million, zero charge; from N3 million to N10 million, five per cent; from N10 million to N40 million, 7.5 per cent; above N40 million, 10 per cent.

    “The new charges would take effect from April 1 2017, in the existing cashless states (Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT).

    “The policy shall be implemented with the charges taking effect on May 1, 2017 in the following states: Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau. “The policy shall be implemented with the charges taking effect on August 1, 2017 in the following states: Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa Ibom, Ebonyi, Taraba and Nasarawa.

    “The policy shall be implemented with the charges taking effect on October 1, 2017 in the following states: Borno, Benue, Ekiti, Cross River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara.

    According to the CBN, income generated from the processing fees charges above the allowable cash transaction limits shall be shared between the apex bank and “the banks in the ratio of 40:60.”

    The CBN has always argued that the cash policy was introduced for a number of key reasons, including: To drive development and modernisation of the country’s payment system in line with its vision 2020 goal of being amongst the top 20 economies by the year 2020.

    The latest announcement comes despite the directive for immediate stoppage of all charges on deposits by the CBN Governor, Mr. Godwin Emefiele, in June, 2014.

    Review of cashless policy

    The cashless policy was introduced by the CBN in 2012 to reduce the amount of cash circulating in the economy, and encourage more electronic-based transactions.

    Features of the policy include N500, 000 cash deposit and withdrawal limit  for individual bank customers, with three per cent charge on transactions above the limit; N3million deposit and withdrawal limit for corporate bank customers, with five per cent for cash transactions above the limit.

    Resounding support for policy

    Speaking with a cross-section of economic and financial experts who understand the workings of the policy they argued that the initiative was ideal for the nation, especially considering the propensity of some unscrupulous individuals to abuse the system.

    In the view of Johnson Chukwu, Managing Director /CEO, Cowry Asset Management Limited, “The imposition of penalties on cash withdrawals and deposits above N500,000.00 are meant to discourage people for continuing to transact their businesses with cash.”

    Giving further insight, he said: “The discrimination in the penal charge where deposits above N500,000.00 attract only 1.5% charge while withdrawals of amounts exceeding N500,000.00 is penalised by a charge of 7.5% must have be designed with the intention not to deter completely depositing of such funds so that they are not left outside the banking industry.”

    Expatiating, he said: “I believe that without either sanctions or incentives it will be difficult to persuade Nigerians to change their habit of transactions businesses with cash hence the imposition of penalties on cash withdrawals and deposits. Nevertheless, I will also suggest that the approach to encouraging the adoption of the cashless policy should include incentives (carrots) and not just sanctions (sticks). That way, the Central Bank will be able to attract more willing adopters of the policy.”

    The imposition of penalties on withdrawals and deposits, he further reiterated, will certainly compel people to start using alternative means of payment such as cheques, POS terminals, on-lines, etc.

    All these alternatives, he maintained, are part of the cashless policy initiatives of the CBN.

    To him, “Any policy that compels people to use banking facilities such as the penalties imposed on cash withdrawals and deposits is certainly to the advantage of financial inclusion as it will encourage more people to open and operate bank accounts. Secondly, the policy will help to improve the effectiveness of monetary policies as it will reduce the amount of cash outside the banking system.”

    Echoing similar sentiments, Sola Oni, Managing Director. Sofunix Investment and Communications Limited, said: “The question of justification of the charges rolled out as penalties for exceeding cash withdrawal limit by the Central Bank of Nigeria (CBN) is relative. If the charges are lower, they still constitute penalties. The philosophy is to discourage mass cash transaction and leverage on the use of credit or electronic card.”

    The policy, he stressed, will encourage the use of digital transfer of money and thereby boost cashless model of transaction nationwide.

    He was however quick to admit that: “Against the backdrop that many Nigerians are not computer literate, it may pose a threat to financial inclusion as digital money transfer and its allied methods require a fair knowledge of computer.

    In the short run, it may discourage financial inclusion but in the long run it would enhance it.”

    Waxing philosophical, Oni said: “There is no policy that can favour everyone. The key issue is the benefits to the overall economy.”

    While making allusion to the early days of the introduction of mobile phone, he said: “Today, many people that are not used to mobile phone by virtue of lack of education are now embracing it as a means of communication. Cashless economy reduces crime, it is faster and quite convenient. But It also has its drawbacks such as  identity theft among others.”

    Welter of criticism against the policy

    Not a few people are convinced that the new policy regime by the CBN is a well thought out initiative.

    One of those who have expressed serious misgivings against the policy is the president of the National Association of Nigerian Traders, Barrister Ken Ukaoha.

    Raising some posers, he queried: “What has changed between the last time the CBN suspended this move and now.”

    Ukaoha pointed out that banks traditionally charge commissions on transactions (COTs) on lodgments into and withdrawals from current accounts.

    Nigerian banks, he said, have with CBN’s tacit approval, been imposing on their customers similar COTs for withdrawals from savings accounts, “cash handling charges” for withdrawals of N1m and above, and other inexplicable and unjust charges.

    “So, what ‘cost of cash management’ does the CBN refer to?” he asked.

    He said the CBN’s drive to make the Nigerian economy cashless must be considered within the prism  of what foundations exist in Nigeria.

    “What is the level of literacy and acquaintance with information communication technology (ICT) among Nigerians? How many Nigerians can use electronic banking services? How many Igbo traders, Fulani herdsmen, market women, farmers, etc are knowledgeable in ICT?”

    Mrs. Uju Ogubunka, a financial and management consultant is also on the same page with Ukuoha.

    She faulted the CBN for approving the new charges for deposit money banks, saying they were not set up to impose such charges on their customers.

    “Some of us feel strongly that it is not right for banks to charge their customers,” Mrs. Ogubunka, who is also the President, Bank Customers Association of Nigeria, BCAN, said.

    She added that it is wrong to charge bank customers on deposits or withdrawals, especially with CBN drive to achieve financial inclusion.

    The BCAN boss, who is a former Registrar, Chartered Institute of Bankers of Nigeria, CIBN, said charging customers for deposits or withdrawals would actually encourage more customers not to embrace the banking culture.

    “With multiple charges, bank customers would prefer to withdraw their money and keep at home for other activities,” she said.

    Ade Olumide,  a businessman in Lagos said the timing of the policy was wrong considering the economic situation in the country.

    “The new policy is uncalled for with the present economy of the country. We are doing the right thing at the wrong time. I am a businessman and my type of business is SME and we borrow huge money from banks to carry out our  activities, this policy will have adverse effect on us,” Olumide lamented.

    Also speaking on the development, Mrs Ebere Oluchi said it would discourage customers from seeking bank facilities.

    “Personally, I believe those charges are not right, especially when CBN is talking about financial inclusion and financial literacy.

    “The importance of finance inclusion is to bring more customers into the saving culture; with reintroduction of charges, it might discourage depositors and those seeking other banking facilities,” she said.

    “It will be easy to control illicit funds that go to kidnappers, especially. To me, it is a good development,” she said.

    Amodu Adeyemi in Ikorodu said the policy was a welcome development, adding that it would reduce movement of cash.

    “It will help to check unnecessary withdrawals, people will only withdraw money when it is necessary.”

    Mrs Yemi Adenuga ex banker the reintroduction of cashless charges, which commenced April 1, 2017, in Lagos and six states including the Federal Capital Territory (FCT) is coming too early in the life of the policy.

    “The time frame to adjust to the change is too short. Awareness should be made highlighting the benefits of the policy,”she said.

    CBN makes volte face on policy

    In a related development, the CBN at the weekend suspended its earlier directive on the implementation of cashless policy.

    In a circular released by the apex bank, it instructed banks to revert to old charges and refund customers who had been debited.

    The circular signed by Dipo Fatokun, director, banking and payments system department, CBN said the existing policy before the announcement of the new policy shall remain in place in Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.

    “You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16,” the circular read.

    “Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante.”

    “The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”

  • Furore over Oyo council caretaker committees

    Furore over Oyo council caretaker committees

    The appointment of 57 politicians as chairmen of caretaker committees to administer 33 local governments and 24 Local Council Development Areas (LCDAs) in Oyo State has generated mixed feelings among the members of the All Progressives Congress (APC). BISI OLADELE traces the underlining factors behind the acceptance and rejection of the candidates by the public.

    It was a list long awaited. Politicians prayed. Many lobbied to gain a place among the 57 ‘wise men’ that would steer the affairs of the local councils, pending the conduct of local government election in June. In the end, when the 57 candidates were unveiled, the reaction was a mixture of jubilation and protests by the candidates and their supporters.
    Workers at the Agodi State Secretariat were taken aback by crowds of political supporters, who invaded the premises. They came from the nooks and crannies of the state in rented commercial buses and private cars. They were armed with posters either conveying their applause or rejection of the candidates selected for the councils. But, most of the protesters came from Oke-Ogun area of the state.
    The 57 candidates had been invited for screening by the House of Assembly. The crowds thronged the venue of the screening, causing a stir for civil servants, passers by and motorists on of the Agodi-Bodija Road. With the fear created by their unusual presence, the Oyo State Police Command was forced to draft policemen to the secretariat to forestall a breakdown of law and order.
    Before the lawmakers sat to consider the list and screen the candidates, some groups started their protest against the candidates and the manner of their selection by Governor Abiola Ajimobi. They claimed that some of the candidates were unpopular, stressing that they did not represent the interest of the local governments. Other groups faulted Ajimobi, describing him as a dictator. They alleged that he did not involve the party leadership in selecting the candidates.
    But, Ajimobi described the protest as an ingredient of democracy. Speaking through his Special Adviser on Communication and Strategy,  Mr Yomi Layinka, Ajimobi said: “Protests are a legitimate means of expressing discontent in a democracy, so long as it is done without disregard for public peace.
    “There are always two or more sides to a story. You may have observed that just as some were protesting, some others were actually jubilating. That is the nature of winning and losing in any contest. As we we’ll know, in any political contests, there will always be some winners and some losers. So, while some felt that their preferred candidates did not make the list of nominated Caretaker Committee chairmen, some were celebrating their luck this time. That is in the natural order of things.
    “As to the allegation that Governor Ajimobi is giving preferential treatment to a particular segment of the Party, nothing could be farther from the truth. For the avoidance of doubt, the governor has said it repeatedly that as the leader of the party in Oyo State, he couldn’t possibly be supporting one group to the detriment of another. Indeed, he has often stated categorically that every member of the party must be treated fairly and equitably no matter when or where he or she may come from. So, the governor never acts in any manner to encourage division within the party. On the contrary, he has always preached about the imperative of harmony within the APC.”
    The governor also hinted that decisions were usually taken after due consultations with stakeholders.
    The leadership of the ruling party urged the protesters to be calm and channel their grievances through the party machinery. It further urged them to sustain the confidence reposed in Ajimobi and the executive committee of the party.
    APC, in a statement by its Director of Publicity and Strategy, Olawale Sadare, emphasised that stakeholders should always be ready to toe the line of democracy, peace and selflessness in resolving any knotty issues like those of appointments since there was no way all interest could be accommodated at the same time.
    “Peaceful protest, especially in a democracy, is an inalienable right of citizens who feel aggrieved over issues of individual or public concern. Therefore, the leadership of the APC in the state cannot condemn peaceful demonstration even though one would have expected the protesters to channel their grievances through the Party since the governor is also a member of the Party.
    “If information available on the protest is anything to go by, we would like to enjoin our people to be calm and remain optimistic because the said list of nominees for Local Government and Local Council Development Area Transition Committee is a stop-gap necessitated by the litigation which led to the suspension of the conduct of local government elections as earlier planned.
    “Be that as it may, we appeal to leaders and members of the APC across the state to remain peaceful and orderly because crisis in a political party as big as the APC in the state is inevitable but they can be assured that sustaining the confidence they have in Governor Abiola Ajimobi as well as the Chief Akin Oke-led state executive committee is what is required to resolve whatever issues that might want to threaten the existing harmony in the Oyo APC. Their cooperation and support is needed at this time more than ever before and we urge them to keep faith with the leadership of the party in the APC government.” The statement read in part.
    The Chairman, Chief Akin Oke, also said party leaders submitted lists of nominees for the appointment.
    As the protests went on, some groups held a rally in support of their candidates. They described the candidates as the best for the jobs both in the local governments and LCDAs, particularly in Oyo land.
    The selection of the candidates were based on many factors including choice of party leaders, pedigree of candidates and the need to run an inclusive leadership to avoid marginalizing any segment.
    Similarly, a social- political organisation domiciled in Oyo State, the Ajumose Coalition Movement (ACM) which is an umbrella body for over 160 associations and groups, has hailed the governor for appointing the set of new helmsmen.
    ACM in a statement signed by its coordinator, Dr Wasiu Olatunbosun, said the development brought new blood into leadership. It pointed out that the appointment would give all segments within the party a sense of belonging.
    ACM said the harmonious relationship within the party should be sustained, urging all members to maintain their loyalty to Governor Ajimobi as the leader of the party in Oyo State.
    “It is in the atmosphere of peace and tranquility as well as mutual respect for  the leadership is sine -qua -non , for our party to continue to be a ruling party in the state.
    “The removal of all serving chairmen is a welcome development as this will afford new set of people who have not been in government since the inception of this administration to contribute their quota to the development of the state, thereby giving all members equal opportunity to showcase their achievements in the forthcoming local governments election. “Olatubosun added.
    In the same vein, the ACM coordinator warned all members, especially those whose stock-in-trade is to fan ember of discord by spreading unfounded rumours and barrage of lies against particular individuals before the leader with the view of running the person down to desist.
    “Those people should desist from ungodly act hence as they would incur the wrath of God” Olatubosun warned.
    The ACM congratulated the newly appointed caretaker chairmen and advised them to run an inclusive government. The group explained that failure to do so would defeat the purpose of bringing them on board as well as erode the confidence reposed in them by Governor Abiola Ajimobi.
    Olatubosun implored members to embrace peace and give all necessary supports to the caretaker committees in their respective local governments as well as the Ajimobi-led administration in the state.

  • Defection furore

    It was quite sensational: Andy Uba’s defection to the ruling All Progressives Congress (APC), from the former ruling Peoples Democratic Party (PDP).

    Just like that: PDP today, APC tomorrow, another party the next day, and no blinking eyes!  That’s how Nigeria’s ultra-elastic democracy rolls!

    Just two years ago, in the heat of the 2015 general election, Uba was a proud  soldier of that “Christian” army, in the Southeast and much of the Southsouth, that scoffed at APC as “Islamic” party.

    But two years down the line, what has changed?  Has APC become “Christian” or Uba become “Muslim”, so much so that man and party now not only see eye-to-eye, but hug themselves in ecstasy, like some long lost but now found friends?

    Of course, you believe that election-time comedy, you believe anything!  The notorious fact is, whatever has changed — or unchanged — Senator Uba crossed the carpet, to where he feels his new interests would be buttered — and jammed!  Hardly a crime!

    But PDP isn’t finding it funny — nor would you!  But frankly, no tears for PDP on this one.  In all its years in government — all 16 years of it — it nurtured subversion of the opposition; and the murder of morality in party matters, into some satanic art.  It not only welcomed defectors from the underdog opposition with relish, it unabashedly instigated such partisan whoredom, under the pretext its umbrella was big enough for every individual and ideological hue.

    Well, it’s payback time and the rich should not cry or even snigger!  Perhaps if PDP had pushed a culture of political rectitude and integrity, perhaps it would have birthed a sane political climate that would have helped it to retain its members during these lean times. But alas!  As you lay your bed, you lie on it. PDP had put in place a bed of thorns.  So, let it quietly endure it without any racket.

    But after PDP, what of APC?  How does it answer the charge that, contrary to its pristine progressive  temper, it is now home to all and sundry, ideological puritanism be damned?

    Well, you could say the party would be foolish to turn its back on any Saul who claims to have become Saul, or even an unrepentant Saul, who, for whatever reasons, wants some change. Democracy, after all, is a game of numbers; and you need numbers to win elections.

    Some political historians could even say puritanical politics was what killed the Alliance for Democracy (AD) which once ruled the roost in the whole of Nigeria’s Southwest.  AD was highly discriminatory, condemning  not a few to political leprosy, by branding them members of the Abacha People’s Party (APP)!

    But where is AD today?  In the doldrums, because of its puritanical politics of exclusion, when political players have shown a clear temper to freely roll, ideology be damned!

    Still, between the PDP (extreme licentiousness) and AD (extreme puritanism), APC is free to pitch its tent.

    However it runs its show today would determine the political culture it would bequeath, which would either aid it or nail it when it comes to its own post-power winter — except, of course, it harbours PDP’s grand illusion that it would be in power forever.

    Does APC want to view the future from the past?  It should immerse itself in the present PDP dilemma. It would be a real tragedy, if it got consumed by the same PDP flaws, after so much lead time to avoid it.

  • Furore over cooking gas, kerosene scarcity

    Furore over cooking gas, kerosene scarcity

    The prices of cooking gas, otherwise known as Liquefied Petroleum Gas (LPG) and Dual Purpose Kerosene (DPK) or kerosene, have gone up, no thanks to scarcity of the products. Though the scarcity and its attendant hike in prices have been blamed on disruption in the supply and distribution chains, AKINOLA AJIBADE writes on the agonies of Nigerians and efforts to remedy the situation.

    Since the New Year, Mrs. Rebecca Alesinloye, a domestic user of cooking gas, otherwise known as Liquefied Petroleum Gas (LPG) and kerosene, has been struggling to come to terms with the sudden hike in the prices of these cooking fuels. “I filled my gas cylinder with N3, 500 in December. By first the week of January, the price has surprisingly gone up to as high as N4,500,” Alesinloye fumed. She added that the skyrocketing prices of the products have brought untold financial and physiological pressure on her household.
    Narrating her ordeal further, an obviously embittered Mrs Alesinloye, a resident of Surulere, Lagos, told The Nation that when she first visited a gas plant located inside a filling station around her neighbourhood, she had hoped that the price of gas would be cheaper since the festive season was almost over. “But to my disappointment, the price was as high as N5,000,” she lamented. She said she had no choice but to go back to the first gas plant to refill her cylinder. She described the price hike as “unfortunate” considering the economic hardship in the country.
    As far as Mrs Alesinloye was concerned, she and other domestic gas users are victims of exploitation by shylock gas sellers. According to her, sellers usually exploit users by increasing the price of the product during festive periods. She accused marketers of being unfair to users, lamenting that this development has compounded the woes of Nigerians battling all odds to survive the economic downturn caused by recession.
    She, therefore, appealed to the Nigerian National Petroleum Corporation (NNPC), marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Liquefied and Natural Gas (NLNG) and other relevant operators to check what she described as “the excesses of the sellers of the two products’.’
    Mrs Alesinloye is not alone in her agony over the increase in the price of gas and kerosene.
    Mrs. Jennifer Eluko, another consumer, is also furious. She lamented that the price of cooking gas rose since last December in most parts of Lagos. A resident of Abule-Egba, a suburb of Lagos, Ekuko said she usually refills her two gas cylinders ahead of the festive period.
    According to her, this was to get round the challenge of artificial scarcity of the product that forces her and other consumers to pay extra. “I usually fill two cylinders ahead of the festive period because I know that sellers would sometimes create artificial scarcity and inflate the price,” Mrs Eluko said.
    Another housewife Mrs. Oluyemi Alimi lamented that the sudden rise in the price of kerosene and cooking gas has added to her financial woes. Alimi, who is in her 50s, said since most Nigerians use LPG and kerosene as cooking fuels, they have no choice but to contend with the increase in the prices of the two products.
    Even LPG retailers are complaining. For instance, the Chairman, Liquefied Petroleum Gas Retailers (LPGAR), Mr. Chika Michael Umudu, said the scarcity of gas has worsened the problems of low income earners. He said many people have abandoned their cylinders and opted for other sources, such as firewood and saw dust.
    The scarcity of the two household cooking fuels has seen their prices hitting the roof. For instance, the price of refilling a 12.5-kilogramme gas cylinder increased by 30 per cent from N3, 000 to N4,500, while that of kerosene increased from N100 per litre to N400 per litre.

    NLNG reacts
    The Nigeria Liquefied Natural Gas Limited (NLNG) said the high cost LPG was caused by shipping cost, delay of cargo discharges at receiving terminals in Lagos and because the commodity’s price is based on international price index.
    Its General Manager, External Relations, Kudo Eresia-Eke, said Nigeria LNG’s domestic LPG price is based on an international price index plus 50 per cent of the shipping cost of delivering the product to receiving facilities in Apapa-Lagos. That price is invoiced in naira at the prevailing official interbank exchange rates.
    He said the reality of this is that though LPG is produced and consumed locally, the product, like crude oil is an internationally traded commodity with an international price benchmark, open to global demand and supply pressures. NLNG, however, softens the impact of price variations by continuing to subsidise the cost of transporting about 40 per cent of total domestic market share supplied from Bonny Island, he added.
    “Recent delays to vessel discharges at the receiving facilities in Apapa, Lagos, which are multi-use terminals with berthing priority accorded to vessels discharging other oil products such as petrol, kerosene and diesel, have also led to a temporary supply disruption over the last two-three weeks.
    “ For instance, NLNG’s dedicated LPG vessel has been unable to discharge LPG at the Apapa port since December 29, 2016 due to jetty unavailability, resulting in temporary product shortages in the market.
    “Additionally, NLNG continues to work with stakeholders, including offtakers and terminal operators, to eliminate bottlenecks and improve operational efficiencies to ensure product availability and help correct market price distortions. We are also engaged with other public and private stakeholders along the domestic market value chain to stimulate price stability and growth.
    “NLNG remains fully committed to the goals of ensuring LPG supply availability, reliability and affordability, which are key for the development and growth of the domestic LPG market. It is in this regard that the NLNG Board recently approved an increase in the LPG dedicated for supply into the domestic market from 250,000 metric tons to 350,000 metric tons annually,” Eresia-Eke said.
    Operators react
    Sadly, the scarcity may linger for a long time, as firms selling the products at various ends of the market are said to have ran out of stock.
    The Chief Executive Officer, Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr. Bassey Essien, attributed the price increase to shortage. He noted that the situation would improve when more vessels bring the product from NLNG headquarters in Bonny, Rivers State to Lagos.
    He explained that a vessel carrying LPG comes to Lagos from Bonny every two weeks, and that the time lag between each delivery of the product and the others often result in short-supply of the product in the market.
    For Comrade Umudu, the scarcity was caused by some cabals who hijacked the operations of the sub-sector. According to him, the cabals determine its supply and price.
    He also told The Nation that LPGAR, which is an arm of the National Union of Petroleum Employees and Natural Gas (NUPENG), has continued to decry the instability in the supply of gas across the country caused by the cabal. He traced the crisis in the sub-sector to last July when the cabals hijacked the sub-sector.

    IPMAN blames forex
    scarcity, partial deregulation
    IPMAN blamed the scarcity of kerosene across the country on the Central Bank of Nigeria (CBN) foreign exchange (forex) policy, and the partial deregulation of the sale of the product.
    Its Vice President, Alhaji Abubakar Dankigari, said many marketers were unable to import kerosene because of forex scarcity. “Besides, kerosene is not fully deregulated; it is not like automotive gas oil (AGO) or diesel. Kerosene and petrol are not fully deregulated,” he added.

    NNPC’s speaks
    The NNPC said kerosene scarcity exists because it is the sole importing the product into the country. “The Corporation has been importing kerosene, supplementing this with local production. It operates in the downstream like other players,” its spokesman, Ndu Ughamadu, said.
    He pointed out that if other marketers that have been authorised to bring in kerosene had lived up to expectation, there would not have been any scarcity of the product. Ughamadu said it was not the responsibility of the NNPC to find out why marketers are not importing the product since it is not the sole regulator of the industry.
    “NNPC is a player in the downstream. We also have our retail outlets for the generic purpose of the nation. We sell to consumers and we have a conglomerate of players. We have IPMAN and others. But the question is: Are they bringing in products like NNPC? If they have all been bringing in products, there wouldn’t have been this kind of problem because the NNPC is also set up as a commercial entity,” Ughamadu said.

    Environmental hazards loom
    Experts have warned that if the scarcity of cooking gas and kerosene continues, there could be environmental hazards in the country.
    An environmentalist, Mr. Ako Amadi, noted that because of the scarcity of gas and kerosene and the attendant price hike, many people have resorted to the use of firewood diregarding its effects on the environment.
    “There would be deforestation, which simply means cutting down of trees in the forest. When this happens, people would be exposed to ecological problems such as depletion of the ozone layers,” Amadi warned
    The environmentalist, who is also a consultant to the Canadian government on environment, warned that further depletion of the ozone layer and its attendant emission of poisonous materials is hazardous to human health.

    Local refineries to the rescue
    The Federal Government said it is making efforts to address the scarcity. The NNPC, in a statement, said the three refineries in Kaduna, Port Harcourt and Warri have resumed production of diesel and kerosene.
    The state-run oil firm said the refining of diesel and kerosene is expected to balance the disequilibrium in demand and supply of the products in order to address the perennial scarcity of the products being experienced in recent times in parts of the country.
    The Managing Director, Warri Refining and Petrochemical Company (WRPC), Solomon Ladenegan, said the plant had been doing well since the Crude Distillation Unit (CDU) was revved up on January 7.
    Despite the assurances, close industry watchers have continued to heap the blame for the crisis in that segment of the oil and gas industry on governments. To them, successive administrations have failed to put the operations of that sector on the path of efficient service delivery.
    Their consensus is that until this is done, the perennial scarcity of the products will continue.
    cause the refinery has started working”, Yahaya stated.

  • Furore over communication service tax

    Furore over communication service tax

    The nine percent Communication Service Tax (CST) Bill being proposed by the Federal Government has attracted a lot of criticisms from discerning Nigerians who have argued that the new policy regime may not be in their best interest after all. In this report, Ibrahim Apekhade Yusuf and Omolara Akintoye examine the issues

    For most Nigerians who are trying very hard to adjust to the excruciatingly biting economic crunch, the proposed nine percent Communication Service Tax (CST) Bill by the Federal Government has been viewed as a bitter pill too difficult to swallow.

    Crux of the matter

    At issue is that the proposed private-member Bill, titled ‘Communication Service Tax Bill (“CST” or the “Bill”) 2015, seeks to impose, charge and collect communication service tax and will be levied on service fees payable by users of electronic communication services.

    Specifically, the services that would be grossly affected by the new policy regime are voice calls, SMS, MMS, data usage, internet services, pay TV to mention just a few.

    Justification for the CST

    Justifying the need for the proposed bill, the Minister of Communication, Mr. Adebayo Shittu has hinted that its implementation will attract about N20billion to the government on a monthly basis, a development, government apologists believe, is a most welcome relief at this point in time.

    Already, the bill has passed first reading at House of Representatives.

    The CST rate, proposed at nine per cent, is seen by economic watchers as part of the new measures the Federal Government has devised to address the low financial receipts occasioned by the fall in the international oil price and value depreciation of the naira.

    Status report on the telecoms sector

    Giving insight on the current position of the sector, the National Chairman of Association of Licensed Telecommunications Operators of Nigeria, Mr. Gbenga Adebayo, said despite the growth already recorded in the industry, telecoms operators continue to face challenges emanating from recurring taxations and the regulatory environment.

    Going down memory lane, he recalled that three years ago, there were 35 licensed telecoms companies comprising some small players, including those in the fixed line, Code Division Multiple Access and Global System for Mobile communications players that were doing well but have since gone underground.

    “Today, that figure has come down drastically, as we now have just about 15 licensees still operating and this tells you that something is not going well,” he lamented.

    Besides, in the view of industry players, the country may lose about 25 percent of licensed operators if the bill is passed into law.

    A staff in one of the telecoms firms confided in The Nation that a study conducted by the regulatory department of his company revealed that no fewer than 25 percent of the existing licensed operators would cease operating in the country one year after the CST bill is passed.

    “If the new policy kicks off, then the Federal Government should be prepared for the worse because so many Nigerians will be rendered jobless. It will be too bad for the telecoms sector that is currently seen as one of the highest employers of labour,” the source said.

    The ALTON boss, while validating what the telecoms staff said, emphasised that the loss of about 20 operators, representing about 57 percent, within a space of three years has been traced partly to the problem of regulatory environment, where there are multiple regulations and imposition of all kinds of taxes on the operators from the federal, state and local levels.

    “The fact that, as operators, we are still confronted with willful and non-willful damage, arising from insecurity in the past years, multiple taxation, especially the Right of Way charges and attendant problem of indiscriminate shutdown of telecoms infrastructure, among others, suggests that regulations in the industry remain unfriendly with varying degrees at different levels of government.”

    He said that the RoW in most states remained exorbitant as government agencies, especially at the state and local levels, continued to perceive telecoms as ‘cash-cow.’

    “It is only in Lagos now that we have been able to achieve better understanding from the government. For instance, Lagos State Government, having realised the great impact pervasive deployment of telecoms infrastructure and unhindered access could have on the state’s Gross Domestic Product, three years ago, crashed RoW tax to N500 per metre.”

    Groundswell of opposition against the CST

    Expectedly, not a few Nigerians have expressed worries over the planned imposition of the communication tax, describing it as anti-masses.

    One of those who holds the view and very strongly too that the government doesn’t mean well for the masses as far as the bill is concerned is the Socialist Party of Nigeria (SPN).

    In a statement issued by Comrade Chinedu Bosah, its National Secretary and made available to The Nation over the weekend, the party said the bill is wittingly and consciously promoted by the Federal Government to attract more revenue for the government at the expense of the suffering vast majority of Nigerians.

    In the statement which reads in part, the SPN said: “Imposing more tax on the people is one of the attacks the ruling class will unleash aside other neo-liberal and anti-poor policies such as devaluation of Naira, removal of subsidy, cut in social spending, deregulation, privatisation etc.”

    It further noted that: “Already, subscribers pay five per cent Value Added Tax on all communication services and this new tax if implemented will jerk up the tax to 14percent. This regressive taxation will obviously reduce the level of communication, further erode the purchasing power of the working masses and compound the economic crisis. Palliatives that the Federal Government promised after removal of subsidy on petrol was a ruse and the aftermath events have shown that more attacks on the living standard of the working masses will be rolled out one after the other.”

    Miffed by what he described as insincerity of purpose on the part of the Federal Government, the SPN scribe said, the government claimed that it is aiming for 30 percent penetration in broadband by 2018 whereas paltry budgetary allocation, domination of private/profit interest in the communication industry and regressive taxation will not only undermine such target, it will continue to erode effective communication.

    “In the same vein, the Buhari-led government claimed it is diversifying the economy towards agriculture whereas budgetary allocation to agriculture is N76 billion (a paltry N400 for every Nigerian) and that is 1.3 percent of the total budget in a country where 18,000 political office holders earn about N1.2trillion which is about 21 percent of the budget.”

    The SPN, Bosah reiterated, “Is strongly opposed to this proposed communication tax on two reasons namely because the tax regressive and will further pauperise the working masses and poor. Hence, we demand that the proposed bill should be put to abrupt end. Such bill and policies will only be progressive if it is targeted at the rich who have capacity to pay higher taxation. The communication tax further violates the inalienable right of the people to freely communicate. What the Nigerians need is affordable and efficient communication.”

    He therefore called on the organised labour including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to resist and defeat this bill by mass mobilisation and protests.

    Echoing similar sentiments, in an interview with The Nation, the immediate past President of Association of Telecom Companies of Nigeria (ATCON), Mr. Lanre Ajayi, said the imposition of the bill now is untimely and will further impoverish Nigerians.

    According to him, telcos are already overburdened with all kinds of taxes, the imposition of another one at this point in time will be most unfair.

    By imposing numerous taxes, Ajayi said:  “The government is indirectly killing the Nigerian economy, government should have a rethink about the imposition of the tax.”

    Appeal to reason

    The fears and worries expressed by stakeholders are genuine and understandable and so cannot be waived aside, Ajayi has stated.

    According to him, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON) and the National Association of Telecommunications Subscribers (NATCOMS) have severely criticised the bill in a letter to the Minister of Finance, Mrs. Kemi Adeosun and the Minister of Communications, Adebayo Shittu. Telecommunications Association (GSMA), the umbrella body of mobile operators worldwide, also joined in solidarity through a letter, dated March 30.

    But the question is, would the government be gracious enough to tarry awhile and put the much controversial bill on hold? Time will tell.