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Tag: high

  • Still high

    Still high

    So much for the sing-song by successive governments about improvements in the ease of doing business; it seems highly unlikely that Nigerians will find the report by Africa’s Pulse, a biannual survey of African economies by the World Bank, that the cost of trade is still five times higher than what obtains in the United States –surprising. Having long become the textbook stuff of which many generations have lamented with successive administrations offering what are at best promissory notes, the unflattering testimonials as captured in the report have become for Nigeria and Nigerians, a by-word for failed governance.

    Thus, it is no brainer that the survey puts market imperfections and institutional distortions – the same age-long structural issues – at the apex of the factors that have impeded Nigeria’s development.

    “Firms and farms”, it observed in its executive summary, “face pervasive credit constraints, with only about one in 10 firms with fewer than 19 workers relying on bank financing. Instead, most own-account workers and household enterprises rely on their own resources, resources from family and friends or informal sources to start up their businesses.

    “Similarly, access to product markets is constrained, which prevents firms and farms from scaling up their production. In particular, the lack of connectivity and market integration means that markets are segmented, allowing firms or farms with market power to capture benefits, contributing to income inequality.

    It further avers: “Trade costs, including costs of transportation are four to five times higher in Ethiopia and Nigeria than in the United States”.

    Again, it bears restating none of the findings in the report is either new to the government or to Nigerians. While the evidences abound across the board, many of the identified issues are somewhat historical. Today, they manifest in the decrepit transportation

    infrastructure of roads, rail and ports, the embarrassing state of the power infrastructure, the abject neglect of rural infrastructure as they are in the palpably inadequate credit infrastructure. 

    Ironically, whereas the colonial authorities appreciated not just the need to forge linkages and integration between the disparate parts of the emergent federation and thus invested

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    in those vital infrastructure to optimise their unequal, one-sided trade, the post-independence inheritors of the legacy neither saw wisdom in modernising let alone upgrading what was handed over to them for national development.

    Not even the oil boom era of the 70s and the 80s did much to alter the trajectory in terms of the requisite investment in those critical

    infrastructure that would have helped to jump-start the economy while at the same time deepening its integration. While the consequence is the so-called lost decades from which the nation is yet to recover, what is more startling is how successive administrations have done little to tackle them in any comprehensive manner.

    The report, more than a mere wake-up call, borders on emergency. The issues are quite easy and straightforward. No thanks to our utterly dysfunctional transportation infrastructure, the country today possesses neither a reliable logistics system to meet consumer needs; the same could be said of supply chain management system around which a reliable manufacturing system can be built. The same holds true for the other issue highlighted in the report: the absence of credit infrastructure. For, while our banks may have done well in churning impressive returns year-in year-out largely on forex deals and other non-core activities, overall, they are still light-years away from meeting the daily credit needs of individuals and businesses.

    This is where the Bola Ahmed Tinubu administration deserves commendation if only for making a bold start in this direction. For, beyond its strategic intervention in providing relatively cheap credit to priority areas in the economy, one area that has since set it apart from administrations before it is its initiative on student loans and consumer credit. And while the onus is on those charged with their implementation to deliver on their promises, Nigerians can only look forward to such other strategic initiatives aimed at tackling the identified problems in a comprehensive manner.

  • High, low points of Lagos trade fair

    This year’s edition of the Lagos International Trade Fair provided a forum for many businesses to evaluate trends in the economy and chart the way forward. Assistant Editor OKWY IROEGBU-CHIKEZIE, who monitored the 10-day event, examines its highlights from the perspective of key public and private sector operators.

    THE just-concluded Lagos International Trade Fair, provided opportunity for partcipants, especially local and international exhibitors, to advertise to target markets and create brand awareness.

    It also provided a veritable platform for manufacturers and service providers to promote their products and services to a broader group.

    But to stakeholders, including public and private sector operators, the 32nd edition of the fair, was more than product and services exhibition, it aimed at reaching prospective customers and increasing market share.

    The event, which was organised by the Lagos Chamber of Commerce & Industry (LCCI), presented another opportunity to examine the benefits and impacts of the trade fair on the economy, do a hard-nosed retrospection on the economy, examine the current challenges and recommend the way forward.

    Reviewing the event, LCCI Vice-President and Chairman, Trade Promotion Board, Mr. Gabriel Idahosa, said more than 500,000 visitors attended the 10-day fair, while an average of 40, 000 square metres space was utilised. Also, about 2, 000 exhibitors attended the fair.

    In what perhaps underscored the growing interest of foreign investors and businesses in the Nigerian market, Idahosa said more than 200 foreign exhibitors from 16 countries, including China, Japan, India, Indonesia, and Ghana, showed up at the fair.

    Other countries that could not resist trade and investment opportunities in Nigeria included Egypt, Jordan, Pakistan, Turkey, Cameroun, Kenya, Singapore, Jamaica, Republic of Benin, South Africa, and the European Union (EU).

    The LCCI chief described this year’s event as “very exciting”.

    “Our brand promise, year after year, will continue to be connecting businesses and creating value as you must have noticed in our marketing campaign for the past few months,” he said.

    Idahosa said exhibitors took advantage of the chamber’s automated website to register, pay and book for the space of their choice, adding that the process was ab-initio, designed to be seamless and friendly, as almost all the available spaces were booked.

    He also said the chamber took time to educate exhibitors on how noise pollution is injurious to health, which was why public address systems and music gadgets were banned.

    “We have been enlightening our exhibitors on alternative ways of marketing, and they embraced it. We didn’t allow any exhibitor to bring musical instrument as we insisted that it would be confiscated if found. We also sent a special team to ensure compliance,” Idahosa added.

    Continuing, he said: “To bring life to the exhibition ground, our central public address system was made available to disseminate information and light music to make the environment welcoming.  We established a Lagos International Trade Fair (LITF) Radio for exhibitors, who want to place adverts, either by spot announcement or jingles, during the Fair.”

    For LCCI President Mr. Babatunde Paul Ruwase, this year’s fair with the theme: “Connecting Business, Creating Value”, underscored the importance of relationships and interactions among businesses for the purpose of wealth creation. He also said it underlined the value of interactions between producers and service providers; and the end users.

    While noting that the Chamber recognised the imperative of non-oil sector development and the need to add value to primary products in order to improve earnings for both the public and private sectors of the Nigerian economy, Ruwase said the fair provided a platform to identify non-oil alternatives and highlighted the significance of value addition.

    The LCCI president added that despite the limitations of the business environment, infrastructure challenges and the state of the economy, the Chamber was able to hold a successful fair.

    According to him, the success of the fair was a testimony that the Nigerian business community and foreign investors demonstrated their confidence in the economy.

    Ruwase, however, called on governments at all levels to continue to address the issues of enabling environment in the country, especially in the area of infrastructure.

    “We need to do this in order to fully harness the huge enterprising resource of domestic and foreign investors for the diversification of our economy and the welfare of our people,” he stressed.

    He has an ally in the President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Iyalode Alaba Lawson. The NACCIMA president asked the government to expedite action on infrastructure development, particularly in the construction of access roads to the ports and the provbision of reliable electricity supply.

    She commended the Micro, Small & Medium Enterprises (MSME) clinics, which she said, made it possible for MSMEs to get loans and working capital. She also asked the government to work earnestly to seek business relationship with developed economies

    .

    In exhibitors, operators, words

    The Japanese Ambassador to Nigeria, Mr. Yutaka Kikuta, said Nigeria is blessed with abundant human and material resources. He, however, asked the nation to turn its potential to trade relations with foreign companies, which will serve as a catalyst for job creation and economic development.

    Similarly, Dr. John Eredo of Jonmaka Herbal Products/Cosmetic Ltd, from Zambia, commended the fair. He said although, he could do with more sales, the visits to his stand was commendable.

    The Nigerian representative of Debbies & Debbitone, hair, skin and home care manufacturers, Madam Uche, also said she had no regrets coming to the fair. While admitting that her sales increased during the 10-day fair, she said the organisers should step up in the area of publicity in the coming editions of the fair.

    Nkoyo Fresh Smothie Chief Executive Officer, who declined to have his name in print,  said although sales were low, the improved security and the elimination of excessive noise that used to characterise previous fairs were commendable. Like Uche, he urged the LCCI to embark on aggressive publicity to attract visitors to the fair.

     

    Govt to improve business

    environment

    To reassure existing and prospective investors, Vice President Yemi Osinbajo said the current administration was working on growing the economy by investing over N2.7 trillion in capital projects.

    Speaking at the Fair, Osinbajo said though the administration earned 60 per cent less from oil, it has done more by creating an environment that supports commerce, trade and foreign direct investment.

    The vice president specifically said the light rail between Lagos and Ogun and the port access road development were part of the enabling environment created by the current administration to create a competitive investment environment.

    He also said the government was working on building an effective rail line out of the ports and Lagos to ensure that port congestion was a thing of the past.

    On power generation, Osinbajo said the current administration was generating over 7, 000 megawatts as against the 3,000 megawatts it met on ground.

    He added that independent power producers are currently powering big markets such Ariara in Aba, Abia State, Sura in Lagos and markets in Edo and Ondo states.

     

    The low points

    But it wasn’t all good news for the fair and the exhibitors. For instance, some exhibitors raised the alarm over the LCCI’s alleged monetisation of the 2018 Lagos International Trade Fair, as well as poor publicity and public awareness.

    Checks by The Nation, however, revealed that the allegation was as a result of the denial of multiple access cards and serial gate passes for exhibitors’ cars and trucks unlike the previous fairs.

    Also, while some international exhibitors from Europe, Asia and Africa commended the LCCI for eliminating noise in the 2018 fair, some local manufacturers and retailers felt it was not good for their business.

    They claimed that the fair was too quiet unlike previous fairs when they used music, dancers and canvassers to attract visitors to their stand to make bulk sales.

    Some of them also said although security largely improved, a lot still needed to be done as some who do not have business at some hours of the day managed to find themselves inside the fair, which may have constituted a security breach.

    A fabric dealer from Ghana, Madam Celestina Oseibonsu, who made her 5th outing to the international trade fair this year, lamented that she did not make much sales, as many visitors complained of low purchasing power due to the poor economy.

    She also complained of poor publicity of the fair. She also regretted that Nigerians wanted to pay the same price they paid last year for fabrics, noting that it was impossible as a result of inflation.

     

    LCCI reacts

    LCCI Director-General Mr. Muda Yusuf debunked allegations of monetisation of the fair. He stated that the chamber gave every exhibitor the mandatory stickers and gate passes, noting that the exhibition ground had limited parking space.

    Yusuf said if all the requests for passes were acceded to, it would have created chaos. Besides, there were private parking spaces beside the fair ground, which exhibitors could have made use of.

    In line with the chamber’s commitment to encouraging trade and commerce, Ruwase reminded Governor Akinwunmi Ambode of Lagos State of its request for a permanent trade fair facility in Lagos.

     

  • World Bank rates Nigeria PPP high

    World Bank rates Nigeria PPP high

    Nigeria is one of the top four leading voices in Public Private Partnerships (PPP) in the 2017 ranking of the World Bank Group (WBG).

    Communications Officer for Infrastructure, PPPs and Guarantees Group of the WBG Ms Yelena Osipova-Stocker, stated this yesterday.

    She described 2017 as a busy year in the world of infrastructure and public-private partnerships at the World Bank Group:

    Yelena said Nigeria’s Infrastructure Concession Regulatory Commission (ICRC) came top four in the Leading voices in the field category .

    She said Nigeria was recognised for being the first country to launch the PPP Contracts Disclosure Web Portal.

    Acting Director-General, ICRC, Mr Chidi Izuwah, said the portal had improved investor confidence in the country.

    He said within the first 100 days of President Muhammadu Buhari’s

    administration, he stressed his commitment to attracting the private capital and expertise needed to address Nigeria’s infrastructure deficit.

    He said the president’s commitment led to a renewed engagement between the World Bank Group and Nigeria to enhance the attractiveness of PPP in the country.

    Izuwah said the portal helped to fulfill President Buhari’s goals

    of fostering transparency and accountability in PPPs, to attract

    the much-needed foreign capital and expertise.

    He said this would help scale up Nigeria’s infrastructure development through PPPs and promote sustainable growth and development.

    “One major PPP transparency initiative is the study conducted by the World Bank Group’s PPP team between September 2016 and April 2017, using the Framework for Disclosure in PPPs.

    ” The team came up with a PPP Disclosure Diagnostic Report for Nigeria that examined the political, legal and institutional environment for disclosure of PPPs,” he said.

    Izuwah said that the report made specific recommendations to improve disclosure in Nigeria by creating an enhanced framework for the scheme, applicable to all Federal Government PPP contracts.

    On Sept. 22, 2017, Vice President Yemi Osinbajo launched the portal, sponsored by the World Bank and the ICRC.

    The portal encourages proactive disclosure of contract agreement between the government and its contractors on PPP projects.

    It was expected to provide information to citizens and relevant stakeholders such as contract title, supervising government agency, name of private concessionaire, contract sum and regular progress report on projects.

    It is part of measures introduced by the present administration to ensure greater transparency and openness in all areas of governance in Nigeria.

  • Equities rally to new high with N203b gain

    Nigerian equities yesterday rallied to their highest point so far this year and their best performance in the past three years. With average day-on-day gain of 1.51 per cent and net capital appreciation of N203 billion, the average year-to-date return now stands at 45.40 per cent.

    The All Share Index (ASI) gained 580.87 absolute points, representing a growth of 1.51 per cent to close at 39,075.30 points. Similarly, the market capitalisation rose by N20s billion to close at N13.609 trillion.

    With 40 gainers to 13 losers, the sustained rally was spurred by widespread rally across the sectors, especially gains recorded by medium and large capitalised stocks including Okomu Oil, Nigerian Breweries, Flourmill Nigeria, Unilever Nigeria and Nascon Allied Industries.

    FBN Holdings recorded the highest price gain of 10.12 per cent to close at N8.49 per share. Transcorp followed with a gain of 9.42 per cent to close at N1.51, while Diamond Bank appreciated by 9.29 per cent, to close at N1.53 per share.  FCMB Groups went up by 9.09 percent, to close at N1.32, while Nascon rose by 8.77 per cent to close at N17.12 per share.

    On the downside, GlaxoSmithKline Consumer Nigeria led the losers’ chart by five per cent, to close at N21.66 per share. Studio Press followed with a decline of 4.78 per cent to close at N1.99, while Learn Africa depreciated by 4.76 per cent to close at N1 per share. Linkage Assurance declined by 4.62 percent, to close at 62 kobo and Caverton Offshore Support Group declined by 4.61 per cent to close at N1.45 per share.

    Total turnover increased by 34.7 per cent to 703.68 million units valued at N7.3 billion in 6,125 deals. Transactions in the shares of Custodian and Allied Insurance topped the activity chart with 131.82 million shares valued at N494.4 million. UBA followed with 92.46 million shares worth N986.68 million. FBN Holdings transacted 86.45 million shares worth N732.1 million. Zenith Bank traded 71.18 million shares valued at N1.84 billion while Transcorp traded 46.53 million shares worth N69.58 million.

    Analysts at Cordros Capital noted that “notwithstanding the possibility of profit taking after six consecutive days of gain, we think market fundamentals remain strong, providing legroom for further gains”.

    Analysts at Afrinvest Securities Limited said the market might witness a pullback following the spate of gains recorded through the week.

     

     

  • Why Nigerians pay high tarrifs

    Why Nigerians pay high tarrifs

    Power, Works and Housing Minister Babatunde Fashola has said the rise in electricity tariffs is due to the failure of the Nigerian Electricity Regulatory Commission (NERC) to review the tariffs periodically.

    He said consumers would continue to pay high tariffs on power as long as relevant authorities refused to review them, adding that the issue has compounded the woes of consumers, who battle problems such as shortage of meters and poor supply of electricity, among others.

    At an interactive forum organised for members of civil societies in Surulere, Lagos,  Fashola said consumers were not paying tariffs that reflected the cost of the electricity they are consuming.

    The forum was at the instance of the Ministry.

    According to him, the NERC is expected to review tariffs paid by consumers, adding that the agency is not doing that.

    Fashola said:‘’I have the understanding that the tariffs being implemented in the power sector are for a period of 10 years. The tariffs are expected to be reviewed during that period. If the tariffs have been reviewed, the prices, by now, must have come down. Rather than the prices of tariffs decreasing, they are increasing, due to the failure on the part of the regulators to review them as part of their oversight functions.”

    He added: “I have no control over the amount that was charged as tarrifs in the sector. NERC is in charge of tarrifs. My duty as a Nigerian is to express my opinions on critical issues that are affecting the generality of the populace, and which I have done when NERC announced the increased in tariffs in 2016. I have expressed my opinions, and nobody can deny me the right not to do so.’’

    He said inflation, interest and exchange rates were changing globally and the increase in those rates are not factored into the tariffs.

    Fashola said power distribution companies (DisCos) advocated for increase in tariffs, and not the Federal Government.

    ‘’So, it is wrong for anybody to assume or belief that any minor or major increase in electricity tariffs is coming from the government. That the Federal Government is the one that proposes cost reflective tarrifs in the power sector is wrong. I disagree with that notion. It is the duty of NERC to approve electricity tariffs, once it certified that the tarrifs are okay enough for the consumers,’’he said.

  • Residents protest high energy bills

    Residents of Olorunda in Ado-Ekiti, Ekiti State capital, yesterday protested what they called “crazy, unacceptable and outrageous electricity bills” from Benin Electricity Distribution Company (BEDC).

    The protesters marched round the neighbourhood and converged on the health centre where community leaders addressed them.

    It was the second time in a month residents were protesting on the issue.

    They urged BEDC to supply prepaid meters, warning officials not to collect money from them again.

    President of Olorunda Pastor Gbenga Ilesanmi said residents spent about N21 million to provide a transformer, electric poles, wires and workmanship for “electricity in our community, with BEDC not providing anything”.

    Ilesanmi said: “We are tired and frustrated by the high bills without the supply of electricity. The bills range from N3,000 to N11,000. We say no to direct billing system.

    “We have resolved not to pay any other bill until prepaid meters are supplied to the community.”

    Chairman of the community’s Electricity Task Force, Mr. Pius Ayodele, said residents provided electricity equipment through self-help.

    He decried the huge electricity bills BEDC was giving its customers.

    Ayodele said: “What we are passing through is no longer palatable. We procured everything we needed in the 12 zones in the community.’’

  • Equities hit two-year high as investors gain N194b on N114b deals

    Equities hit two-year high as investors gain N194b on N114b deals

    Nigerian equities hit their highest level in two years at the weekend as increased bargain-hunting for quoted shares sustained a bullish trend that had seen investors with N902 billion net capital gain in July. Investors recorded net capital gain of N194 billion last week as bargain-hunters overran a major profit-taking breather that started the week to sustain four consecutive positive trading sessions.

    Major indices at the Nigerian Stock Exchange (NSE) showed increased momentum of activities and continuing investors’ appetite for quoted shares. Average week-on-week gain stood at 1.52 per cent last week, equivalent to net capital gain of N194 billion. The sustained rally over four trading sessions nudged the average year-to-date return to 39.26 per cent at the weekend.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N12.705 trillion to close the week at N12.899 trillion. The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, also rose from its index on board of 36,864.71 points to reach a new high of 37,425.15 points at the weekend.

    Investors traded a total 2.52 billion shares worth N114.12 billion in 23,546 deals during the week, compared  to a total of 2.21 billion shares valued at N30.64 billion traded in 26,287 deals in the previous week. Financial services stocks accounted for 1.51 billion shares valued at N16.35 billion in 12,511 deals; representing 59.9 per cent and 14.3 per cent of the total equity turnover volume and value respectively. The industrial goods sector rode on the back of negotiated deals on Dangote Cement to record a turnover of 441.91 million shares worth N89.36 billion in 1,282 deals. The conglomerates sector placed third with a turnover of 184.61 million shares worth N701.67 million in 929 deals.

    The three most active stocks were Dangote Cement, Access Bank and Zenith International Bank, which altogether accounted for 833.97 million shares worth N95.97 billion in 3,203 deals, contributing 33.1 per cent and 84.1 per cent of the total equity turnover volume and value respectively.

    With 38 gainers to 28 losers, most sectoral indices at the Exchange also closed positive. The NSE 30 Index, which tracks the 30 most capitalised companies, recorded a week-on-week average return of 1.24 per cent. The NSE Consumer Goods Index recorded the highest average gain of 4.87 per cent. The NSE Insurance Index appreciated by 2.81 per cent while the NSE Industrial Goods Index inched up by 0.07 per cent. However, the influential NSE Banking Index depreciated by 1.64 per cent while the NSE Oil and Gas Index dipped by 3.05 per cent.

    Low-priced stocks were ahead of the bullish run. C & I Leasing recorded the highest gain, in percentage terms, of 44.9 per cent to close at N1 per share. Dangote Sugar Refinery followed with a gain of 37.3 per cent to close at N14.91. Linkage Assurance rose by 27.1 per cent to 75 kobo. Nascon Allied Industries appreciated by 26.9 per cent to close at N12. Livestock Feeds rallied by 19.2 per cent to close at 93 kobo. Cadbury Nigeria rose by 12.9 per cent to N11.80 while Jaiz Bank gained 12.1 per cent to close at 74 kobo.

    On the downside, Morison Industries led the losers with a drop of 16.9 per cent to close at N1.13. Red Star Express declined by 12.4 per cent to N4.38. Cutix lost 9.9 per cent to close at N2.19. University Press dropped by 9.3 per cent to N2.63. NPF Microfinance Bank dipped by 9.1 per cent to N1.20 while Mobil Oil Nigeria lost 8.3 per cent to close at N232 per share.

    Also traded during the week were a total of 1.166 million units of Exchange Traded Products (ETPs) valued at N16.169 million in 17 deals compared with a total of 1.732 million units valued at N13.711 million traded in 19 deals two weeks ago.

    In the sovereign bond market, a total of 5,850 units of Federal Government bonds valued at N5.702 million were traded in seven deals as against a total of 750 units valued at N0.695 million traded in eight deals in the previous week.

     

  • Inflation declines but prices remain high

    Inflation declines but prices remain high

    Inflation has been declining in the last few months, indicating a fall in food prices. But some traders lament that the situation is at variance with reality, FECHUKWU ANYANWU reports.

    Things are technically looking up for the economy.

    Data released by the National Bureau of Statistics (NBS)showed that inflation rate has been declining in the last few months, indicating a fall in price. But in realities, it is not so and traders are complaining.

    According to the NBS, the Consumer Price Index (CPI), which measures inflation, dropped from 17.26 per cent in March to 17.24 per cent in last month. It said the 0.02 per cent drop in inflation rate makes it the third consecutive month of decline in the CPI.

    “The CPI, which measures inflation, increased by 17.24 per cent (year-on-year) though at a slower pace in April 2017, 0.02 per cent points lower from the rate recorded in March (17.26) per cent. “This is the third consecutive month of a decline in the headline CPI rate, exhibiting effects of some easing in the already high food and non-food prices, as favourable base effects over 2016 prices,” the NBS report said.

    However, the report though heart-warming, appears to be at variance with reality. Some traders and consumers, who spoke with The Nation, lamented that the drop in inflation has yet to translate into any significant decrease in prices of most food items.

    For instance, at Ikotun Market, Lagos, traders lamented the low patronage caused by high cost of food items. They cited huge transport costs, high shop rents and various market development levies as responsible for the hike in food prices, urging government to come to their aid.

    One of the traders, who identified himself as John, sells rice, beans and other grains. He  said he travels from Lagos to Abakiliki in Ebonyi State to buy goods and that each time he did, he discovered that prices of foodstuffs remained high. He said he had no choice than to transfer the burden to his customers.

    “I have to add a token on each (derica) or ‘paint bucket’ that I sell to customers to cover my expenses,”  John said, adding that traders in Ikotun Market were merely transferring the extra cost of bringing the food items in to buyers.

    John, however, explained that the price of rice and other grains are not constant because they are seasonal. “There are various types of rice and different time of harvest,” John said, noting that a bag of rice, which sold at more than N20, 000 early this year, now sells at about N17, 800.

    He lamented the low customer patronage that had hit him and other traders in the market. According to him, any slight increase in the price of items is usually resisted by customers most of who end up not buying anything after complaining of not having enough money to buy due to the economic downturn.

    “I didn’t make enough sales early this year because of the recession. After paying shop rent and meeting other expenses, what is left as my profit is never enough to enable me go back to the market and re-stock. I hope the economy gets better soon,”John said.

    He is not alone in his frustration. Mrs. Francesca, who sells provision and toiletries, also lamented that profit had been dwindling as a result of low patronage caused by high prices. She said she was considering switching to another line of business in the hope of breaking even.

    Similarly, Mama Chidera, a food item seller, said she is on the verge of quitting the business because of the fluctuating cost of food stuff coupled with the stress of waking up early to go to Liverpool Market in Apapa area of Lagos to get food items for sale.

    She regretted that despite the reported drop in inflation, cost of food items remained high. For instance, a bag of Egusi sells for N65,000, while a bag of Ogbono, which formerly cost about N95,000, now goes for as high as N100, 000.

    She also said a bag of crayfish, which was N26, 000, now costs N32, 000, while a bag of pepper is now 55,000.

    Mama Chidera also lamented that prices of toiletries and beverages, such as Dano Milk, Peak Milk and assorted brands of soap have remained high, despite the drop in inflation.

  • Getting high

    •We welcome suspension of aviation crew member over drug use

    News of the suspension of an aviation crew member for drug use is a cause for concern. From the look of things, the crew member concerned indulged in getting high even when his work involved flying at high altitudes.

    The Nigerian Civil Aviation Authority (NCAA) said it imposed the sanction on the unnamed crew member after he tested positive to marijuana during random alcohol and drug tests on licensed aviation personnel prompted by a directive from its director-general, Capt. Muhktar Usman.

    According to the NCAA , 87 personnel from Air Peace, Med-View Airline and Air Traffic Controllers of the Nigerian Airspace Management Agency (NAMA) were randomly tested as they were about to embark on flight operations and air traffic control duties. The agency said that out of the 10 pilots and 19 cabin crew from Air Peace Limited, nine pilots and 32 cabin crew members from Med-View Airline, and 10 licensed air traffic controllers and six trainees from the control tower and Total Radar Coverage of Nigeria Centre of NAMA, one crew member tested positive to a psychoactive substance, Tetrahydrocannabinol (THC), which is known to be “the chemical responsible for most of marijuana’s psychological effects.”

    It is a statement on the defined dos and don’ts that the penalty imposed by the regulatory authority was regulation-based. The regulator noted that the crew member had violated the provisions of Part 2.11.1.7. (a) and Part 8.5.1.5(a) (3) of the Nigeria Civil Aviation Regulations (Nig.CARs 2015). The agency said: “The offending air crew has been suspended in accordance with the provisions of Part 2.11.1.8(f) (i) and Part 2.11.1.7(c) of Nig.CARs 2015. His medical certificate and licence have been suspended for 180 days from the 5th day of April, 2017.

    Accordingly, the respondent shall cease to exercise the privileges of the licence for the period of his suspension.”

    The regulator must be commended for enforcing the regulations in this specific case. There is no question that the use of psychoactive substances by aviation personnel has flight safety implications. So, aviation workers must be drug-free.

    It is noteworthy that the suspended crew member is expected to “undergo a comprehensive treatment and rehabilitation for psychoactive substance abuse during the suspension period under the care of a consultant psychiatrist.” The NCAA added that the report of the consultant psychiatrist will be reviewed by its consultant psychiatrist adviser to enable it to consider possible restoration of the suspended medical certificate and licence.

    What makes this latest case particularly worrying is that it is coming about six months after a similar situation in which the NCAA suspended the medical certificates of five cabin crew members for a drug-related offence.

    According to a December 2016 report,  the crew members  were said to have tested positive to marijuana during Drug Screening Test, MDST, conducted on participants of the Cabin Crew Training Basic Course – 30 (CCTB – 30 ) at the Nigerian College of Aviation Technology (NCAT) Zaria, Kaduna State.

    The recurrence reinforces the necessity for regular and rigorous tests, and the necessity for strict and severe sanctions. Nothing short of such standard will do. It must be made clear that those who are not deterred by the punishment of others must be ready to face punishment if caught breaking regulations.

    It is reassuring that a statement by the regulator said: “The NCAA will continue to carry out consistent surveillance on the aviation industry to ensure full compliance with extant regulations. Failure will attract adequate sanction. “

    In addition to thorough tests, consistent education on the unacceptability of drug use among aviation personnel and the inevitability of punishment for those who break the rules must be put on the front burner.

  • Aketi: Expectations are high

    When thousands of Ondo State denizens lined up in scorching sun last November to exercise their franchise and vote in a new leadership to manage the state, they wanted something different from what Governor Olusegun Mimiko was offering them.

    There were three major candidates from three major political parties that sought the support of the people to lead them. They were Mr. Rotimi Akeredolu, SAN, known as Aketi, who was the standard bearer of the All Progressives Congress (APC), Eyitayo Jegede, standard bearer of the Peoples Democratic Party (PDP) and Olusola Oke, who was fielded by the Alliance for Democracy (AD).

    People were faced with options to choose the best from these three gentlemen. At the end of the poll, Akeredolu emerged winner, becoming the best choice of the majority of people.

    Last month, Akeredolu was sworn in as sixth Executive Governor of the state at the Akure Township Stadium before thousands of citizens. Significant number of people among the crowd at the swearing-in ceremony wore weary looks. They were those whose parents had not received salaries in months. They were unemployed graduates. They were old men and women expecting policies that would move the state out of the woods and give it a new direction. The crowd cheered loudly as Aketi made promises of leading the state to its redemption.

    This is the fourth week after Aketi was sworn in and the government of “Change” is moving on without commissioners named and no definitive statements about government-owned parastatals. We have seen no clear-cut programmes or blueprint that has been unveiled, or announcement of major policy.

    Akeredolu had ample time between his election and inauguration to set the ball rolling, by choosing people who will work him. Had he done this, the machinery of governance would have started moving forward immediately after he took over.

    Rather, there have been unnecessary political statements and one begins to wonder if the new governor has not forgetten his campaign promises so early. At the gala dinner organised for Aketi, the governor was said to have lambasted a senator for not supporting him during the election period, but went to newspaper houses to put up adverts celebrating and congratulating him after inauguration.

    One wonders if the rumoured internal wrangling within the ruling party won’t affect the governance in Ondo State. The southern part of the state has not had electricity for many years now. Also, the northern flank (the Akoko areas) has not had light for about a year now.

    Education is the bedrock of any nation. The state-owned tertiary institutions, such as Adekunle Ajasin University in Akungba-Akoko (AAUA), need proper funding to make them better than they are presently. The governor must know that educating the youth would help his government to achieve its goals. If the schools must be strengthened, it must be done without putting financial burden on the parents/guardians through increment in fees.

    However, his meeting with Ondo workers on his first in office and a declaration that he won’t get a dime as salary until workers’ salaries are paid, is a step in the right direction. Also, with the visits by the Deputy Governor, Hon. Agboola Ajayi, to the recently damaged Akure Township Stadium and the distressed Ondo State University of Technology (OSUSTECH), one may deduce that the new government seems serious to tackle the state challenges.

    But, it is important to give the new governor a nudge as a reminder that he does not have enough time for political honeymoon. People are fervently waiting on him to set the ball rolling and put the machinery of governance on top gear. This missive should be seen as a reminder to the government that the expectations of Ondo people are high and performance at an optimal level will be very much appreciated.

     

    Segun recently finished from Political Science, AAUA