The Nation Newspaper

Tag: Nigeria

  • Mails of wealth

    Mails of wealth

    Mail delivery has been negatively affected by alternate forms of communication, such as e-mail and the Internet. At the same time, the business is benefitting from an increase in the volume of internet shopping, which has seen greater demand for parcel deliveries. For  this reason, the Managing  Director, Swift Courier, Mr Toyin Olufade,  said  there are opportunities  for  Nigerians  to invest in the  sector  and make money. Opportunities, he said, are in freight delivery, serving local, regional, national  markets.

    Domestic freight delivery service providers, he noted, provide air freight delivery options, and operate ground freight trucking services. Local  firms, Olufade, who is also  the President, Nigerian Courier Operators  Association, added can  offer  port-to-port delivery, including freight packaging services. The strategy is offering   premium services, where – delivery is made   in less than 24 hours. He  said  local  companies  don’t  need to focus on international routes  as such  lanes would need deep pockets, which  only  global logistics companies  can afford.   He  said  the success of couriers depend to a large extent on fleets of vehicles and equipment, ranging from simple trucks to  other  forms  of  cargo  transportation. Olufade  said  service quality is becoming increasingly important.

    On-time pickup and delivery, speedy customs clearance, in-transition traceability, parcel safety, and 24-hour accessibility are important elements in overall service quality for shippers. However, the constant business shake-outs create a climate of vulnerability for potential entrants. But  Olufade  said his  association is  working  to address this.

    The  Group Managing Director, Bowill Group of Companies and  Secretary General, Nigerian Courier Operators Association, Mr Siyanbola Oladapo  said  his  association expect the service quality of local players to improve, which will allow them to challenge the large integrators for market share.

    He  said  there are huge opportunities for entrepreneurs in  courier and  freight delivery. He said they are determined  to assist local  operators  break down barriers that prevent them  from reaching their high-impact potential. To this end, he  said  the association  has  scheduled a  public lecture and  award ceremony, which will be held on Tuesday, September 25,2012. Start-up costs for a freight delivery company vary widely, but can be quite expensive. Depending on type of freight delivery, costs may include business facility leasing, office furniture, computers and printers, commercial vehicle purchases, freight hauling equipment, freight and packaging supplies, labour and insurance costs. Most  Nigerians  on errands service  use  a vehicle and communication equipment such as a mobile phone to operate. A critical mass in the industry own about five to 10 vehicles. For participants to expand beyond this point, a significant investment in technology and radio equipment is necessary.  The banking industry, which has been the mainstay of the express document business, saw stagnation in shipments in the past two to three years. However, the document business from banks is expected to grow in line with anticipated bank expansions. Given that usage is now primarily for original documents, a shift to electronic media is not expected. Oladapo said  local  operators  should  focus more on high-margin industries and customer segments and put into practice more flexible pricing strategies.

  • Economics of the N5000 debate

    Economics of the N5000 debate

    The statement by the central bank of Nigeria that N5, 000 will be introduced and N5, N10, and N20 notes will be coined in 2013 has generated a lot of debate. Many of the contributions have however strayed off the key point. Namely, the reason currency notes and coins are necessary.

    • Retail Payment Requirements

    Notes and coins are held primarily for retail payments. To be relevant, their face values, nature, sizes and weights must be suited to the retail transactions they are needed for.

    There are two types of retail payments: highly repetitive small value transactions such as urban transportation, sweets, cigarettes, cola nuts, fruits, vegetables, snacks, cooked food, sachet water, soft drinks, juices, beer; newspapers, haircuts; phone cards, and, less frequent, relatively high value transactions such as clothing, footwear, watches, raw foodstuff, poultry, livestock, fuel, spares parts, and local airfares.

     

    Optimising Naira coins

     

    Naira coins must be designed by the central bank with the first category of retail transactions in focus because their repetitive nature and the conditions under which they must happen, such as in crowded markets, stadia, streets, bus stations, airports, congested traffic, and varying weather conditions including rainy, sunny, and humid conditions, mean that notes are ill-suited for them.

    Metal coins will fare better under these conditions, which is why countries regularly upgrade their coinage to keep pace with the prices of this category of retail items.

    Nigeria’s coins were adequate for these transactions when we spent pennies and shillings modeled after the British pound sterling before independence, and a little over a decade after independence.

    Nigerians valued the coins and spent them with relish, because one or two pieces in the pocket sorted the daily payment needs of the average person, child or adult. Naira coins that replaced those in 1973 remained very adequate for all the small value transactions until the late eighties when they began to lose correspondence with retail prices, and Naira notes increasingly took their place.

    Attempts to reform the coinage to date have never spoken directly to the need for the face values of Naira coins to relate such retail items as bus fares, and the prices of newspapers, refreshments and fast food.

    The Soludo coin reform that raised the maximum face value of coins arbitrarily to N2, without asking how much a school child needed for soft drink and snacks at break time, failed for this reason. The Lamido proposal to coin N5, N10, and N20 is in the right direction, but is equally arbitrary, as it lacks correspondence with current values of retail items, and is also bound to fail. How many pieces of the Lamido coins will a school child need to hold just for school run and refreshment at break time? It will require too many pieces to make sense for school children, much less adults.

    A robust coinage must be adequate for retail payment needs of all children and adults. Naira coins that would make sense today will fall in the range of N1, N2, N5, N10, N20, N50, N100, N200, N500, and N1000. Just before anyone screams, remember that the two pound coin is more that N500 in face value, and the coining of the five pound note is imminent in the UK.

    They thought us how to use coins. They have done a good job of maintaining their coinage, it’s about time we put some dignity back into Naira coins. Japanese six denominations of coins range from Y1 to Y500, and one Yen exchanges for two Naira.

    Nobody holds the naira coins today because N2 maximum face value makes absolutely no sense. It is a waste of the country’s resources and time to mint such. N1 and N2 should be the minimum, and small enough, like the farthing of old, and they would make sense. N20 Naira maximum coin still will not make sense because it still does not buy a soft drink or an apple, and no one will hold them.

    If you stamp N500 or N1000 as the maximum value on the same coins today, everyone will hold them, as in other countries where the coinage relate to retail prices.

     

    Optimising Naira Notes

     

    Naira notes must be designed by the central bank with the second category of transactions in mind. If naira notes are to make sense, I should be able to fill my tank with just a piece of Naira note. People should be able to pay for live chicken, goat, or turkey with a piece or two of Naira notes. A bag of rice, a tin of vegetable oil, should not require more than one or two pieces of Naira notes.

    There should be notes with face values suited for the purchase of ram, shirts, suits, shoes, watches, car tyres, and other spares parts if Naira notes are to be worth printing and spending. The proposed introduction of N5000 is in the right direction, but is equally arbitrary, as it is not proposed in reference to retail price realities, and is hardly the optimal highest face value for the Naira notes at the moment.

    It is the end that justifies the means. It is the items that people need to pay for with notes that should determine how much we print on the currency notes. That is the economics of Naira notes denominations. To be sensible today, Naira notes should take face values of N500, N1000, N2000, N5,000, N10,000, and N20,000 (current value of the lowest airfare); where N500 and N1000 could circulate as both notes and coins until further notice.

    I have arrived at these suggestions by trying to connect the face values of Naira notes with realities of retail prices. But the examples of other some other countries also point to the same direction. Japanese notes are only four denominations: Y1000, N2000, N5000, and Y10,000; and one Yen exchanges for two Naira.

    Suggestions by Professor Soludo a few others that the Naira be re-decimalized by knocking of a few zeroes are uncalled for, being more suited to currencies with seven digits or more in face values, as in post hyper-inflation Ghana, Zimbabwe, and a series of Latin American and Eastern European countries. The Japanese example of re-denomination necessitated by realities of retail prices is more appropriate to the current Nigerian challenge.

    Apart from speaking directly to the realities of retail prices, the suggested re-denomination will have the added advantage of reducing the pieces of notes the central bank have to print, store, distribute, and maintain. There were as many as six billion pieces of naira notes in circulation in 2011, compare to one billion pieces in 1985, and four billion pieces in 2005.

    We should introduce larger denomination notes to push that number back to less than two billion pieces. Banks will no longer require as many bullion vans, bulk counting rooms, note counters, counting machines, and those little bags they must now give you when you withdraw some cash. Buyers and sellers will waste less time counting and recounting notes as if under a spell.

    Handing of naira notes by the public will become inconspicuous. Relatively higher face values will ensure they are used less often, treasured and kept neat. People are unlikely to spray reasonably valued notes at parties and other social events.

     

    Electronic Payments

     

    The two categories of retail transactions to which coins and notes have been related above are not what e-payment instruments are about. E-payment instruments are more suited to transfer of funds from one person to the other, especially when bulk sums are involved. E-payments relate to wholesale transactions, as opposed to cash which relate to largely spontaneous, mostly anonymous, small value repetitive transactions.

     

    Misconceptions

     

    In the presence of generally acceptable small-denomination coins, large-denominations will not be inflationary. It is actually the current situation in which lower denomination coins are not in circulation that precipitates inflation as the general public put pressure on retailers to round up to the nearest banknote.

    The currency, note or coin is best viewed as a measuring rod or ruler. There is no reason to expect that the public will wear oversized dresses if the tape-rule is too long. We can press the analogy with the ruler a little further: school children, dressmakers, architects, land surveyors, and civil engineers all use one type or the other of what is basically the same thing, the ruler: multiples of millimetres. The only difference is size.

    Currency is just like that. It must be made available by the issuing authority in wide enough variety or denominations to suit the needs of different users.

    Many economies in which large-denomination notes and coins circulate actually have some of the lowest inflation rates often combined with impressive records of growth. US, Japan, UK and the Euro area are some of the examples. The Euro provides a good illustration: there are 8 denominations of coins, and 7 denominations of notes.

    This will provide enough flexibility and adaptability to both very small and very large transactions. Since there should be small-denominations that are appropriate for any transaction, there is no reason why the presence of large denomination should affect inflation in any way.

    Too many denominations will not be confusing either. The public will choose the denominations they want and others will become unpopular. The range of measurement units from the millimetres to the kilometre is quite broad yet it confuses no one. Rather it helps everyone. The Euro’s eight denominations of coins and seven denominations of notes means there are fifteen different units of currency circulating in the Euro area. Nigeria can take a cue from that.

    The policy clue is that the issuing authority should make a fixed quantity of all the relevant denominations for a start, and subsequently increase each denomination only at the rate at which their inventory is depleted.

    Large-denomination coins are unlikely to be melted by metal-smiths for jewellery if the central bank ensures that coins have very low and  insignificant intrinsic value. What counts is the face value of each coin. It matters very little how much zinc or copper, or silver it contains. Kill the incentive to melt the coins away. That is the message. It is instructive that American public simply throw the 1-cent away or abandon it at home. There is no incentive to melt it down.

    Large-denomination currency notes will not encourage counterfeiting. We should be careful not to throw out the baby with the bath water. Fear of possible counterfeiting should not stop us from doing the needful. We need to do what is necessary first, and take measures to protect it afterwards. The hundred-dollar bill is probably the most widely counterfeited currency bill in the world. Rather than withdraw it from circulation, the US government has simply invested a little more in security proofing.

     

    •Dr. Teriba, who wrote in from Lagos, can be reached at ayo.teriba@econassociates.c

  • Global equities: Egypt, Germany, Nigeria lead

    Global equities have sustained double-digit returns with Egypt, Germany and Nigeria leading returns across the developed and emerging markets.
    Global return analysis pointed to general recovery in the equity markets with only one out of 16 benchmark indices for key developed and emerging markets in America, Europe, Asia and Middle East and Africa indicating negative.
    Comparative year-to-date analysis of major markets showed that Egyptian stock market, which has ratcheted up its recovery after a successful presidential election, leads global equities’ returns with more than 186 per cent. Germany, which has shown resilience amidst the Euro crisis, shows average return of about 24 per cent. Nigeria trails with more than 21 per cent.
    The United States of America (USA) stock market continued to show all-positive outlook. The Dow Jones Industrial Average (DJIA) and Standards and Poor’s 500 index, two key indices for the USA market, returned 10.82 per cent and 16.09 per cent respectively. NASDAQ Index indicated a return of 8.69 per cent.
    France’s benchmark CAC 40 Index posted a return of 10.83 per cent while United Kingdom’s FTSE 100 Index returned 4.44 per cent. Japan’s Nikkei 225 Index posted a return of 6.38 per cent. Brazil’s Bovespa Index indicated average return of 9.17 per cent. India’s BSE 30 Index recorded 16.60 per cent while Hong Kong’s Hang Seng Index posted average gain of 8.75 per cent;
    In Africa, South Africa, Africa’s largest stock market, showed considerable return with the All Share Index (ASI) of the Johannesburg Stock Exchange (JSEASI), indicating average gain of 12.19 per cent. Ghana Stock Exchange’s All Share Index (GSE ASI), the benchmark index for the Ghanaian stock market, also posted a year-to-date gain of 6.95 per cent. Switzerland’s stock market index-SMI showed positive returns of 9.72 per cent. Only Spain was on the downside with its benchmark index-SMSI, suggesting negative return of 6.36 per cent.
    With the differences in trading hours across the jurisdictions, the global indices were measured on September 13. Primary market data were provided by FSDH Securities.
    Many analysts were optimistic Nigerian equities may catch up with Germany’s index to emerge in the second position in the next few trading weeks.
    Analysts at Financial Derivatives Company (FDC) Limited said Nigerian equity market was still undervalued and held out considerable prospects for appreciable long-term returns.
    Analysts said although investors need to still be cautious, the market remains attractive to long-term investors.
    According to analysts, investment opportunities remain in several sectors, with inherent values easily identifiable in the banking and consumer goods sectors.
    It noted that aside from the fact that the market is undervalued at current levels, investors should bear in mind that stocks are poised to keep going higher in the long term because the market is still in a bull market and the market is still fuelled by measurable growth from key economic indicators

  • Total Nigeria vs Mobil Oil Nigeria: Neck to neck

    Total Nigeria Plc and Mobil Oil Nigeria Plc are the two most capitalised petroleum-marketing companies in Nigeria. Altogether, they accounted for some 52 per cent of total market capitalisation of the downstream oil sector at the stock market. Total Nigeria leads the capitalisation table with 28 per cent while Mobil Oil Nigeria trailed with some 26 per cent. A subsidiary of French multinational and Europe-leading oil company-Total S. A, Total Nigeria is a company of considerable influence and size in Nigeria and globally. With more than 500 retail outlets, five Liquefied Petroleum Gas (LPG) bottling plants, three lubricant blending plants, four aviation depots and many other facilities, Total Nigeria is undoubtedly a leading oil-marketing company.
    Mobil Oil is the earliest petroleum-marketing company to be incorporated in Nigeria and has operated for more than six decades in Nigeria. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America and it runs a nationwide network of outlets that make the company a household brand throughout Nigeria.
    Both companies shared many similarities. With some 60 years of operations in Nigeria, they have etched their brands and stocks as blue chips. Interestingly, both companies were listed  same year, same month and within the same week.
    Audited reports and accounts of both companies for the year ended December 31, 2011 showed a similar pattern, with recovery in sales characterised with decline in profitability and returns. Where the performance trends differed, the companies intermittently switched roles. While Total Nigeria  led in terms of size of growth, Mobil Oil Nigeria made more profit per every unit of sale and its returns were quite higher than its competitor.
    Sales generation
    Both Total Nigeria and Mobil Oil Nigeria grew the top-lines in 2011 as against general declines in the previous year. Total Nigeria increased sales by 8.3 per cent in 2011 as against a drop of 10.1 per cent in 2010. Mobil grew sales by 6.4 per cent in 2011, a major recovery from the declines in the past two years when sales dropped consecutively by 7.1 per cent and 5.9 per cent in 2009 and 2010 respectively.
    Profitability
    Mobil’s gross profit grew by 4.2 per cent in 2011 but profit before tax dropped by 3.4 per cent in 2011 as against significant growth of 41 per cent. Net profit after taxes also slipped by 3.4 per cent in 2011 compared with increase of 37 per cent in 2010. Gross profit margin dropped marginally from 16.6 per cent to 16.3 per cent while pre-tax profit margin contracted to 8.9 per cent in 2011 as against 9.8 per cent in 2010.
    On the other hand, Total Nigeria’s gross profit grew by 6.6 per cent in 2011 as against a decline of 4.5 per cent in 2010, showing a two-year average growth of 1.05 per cent. The company also replaced its 6.2 per cent decrease in profit before tax in 2010 with a growth of 1.3 per cent. But as margins diminished on item-by-item basis, profit after tax caved in with a decline of 4.0 per cent in 2011 compared with negligible growth of 0.1 per cent in 2010. Underlying profit-making capacity of the company was however, generally weak. Gross profit margin dropped below average to 12.9 per cent as against 13.1 per cent in 2010. Pre-tax profit margin also decreased from 3.6 per cent to 3.4 per cent.
    On the average, Mobil still maintained its lead with higher gross margin and pre-tax profit margin. Compared with Total Nigeria’s average gross margin of 13 per cent, Mobil made about 16.5 per cent while Mobil’s average pre-tax profit margin of 9.35 per cent more than doubled Total Nigeria’s 3.5 per cent.
    Actual returns
    Mobil returned 18 per cent on total assets in 2011 as against 24 per cent posted in 2010 while return on equity slipped from 65 per cent to 55 per cent. Average return on total assets over the past two years stood at 21 per cent while average annual return on equity stood at 60 per cent.
    Meanwhile, Total Nigeria’s return on total assets was almost unchanged at 10 per cent while return on equity dropped from 44.5 per cent to 38 per cent. Average annual return to shareholders thus stood at 41.25 per cent.
    The bottom-line
    Protracted reform in the petroleum sector and continuing controversy that exacerbate global oil variables tend to undermine the potential of Nigerian petroleum companies. These compounded the almost monolithic nature of the business where little product differentiation gives less room for marginal errors. The margin of profitability, and sustainability of such, thus depends on high level of appropriate mix of often-difficult variables.
    Both companies obviously need to explore ways to accelerate sales growth and control cost to deliver higher margins and ensure better returns to shareholders. For now, it’s a neck-to-neck contest of the two oil majors.
  • Is Mrs. Jonathan ill?

    Is Mrs. Jonathan ill?

    • We wonder why public officials never learn from experience.

    MRS Patience Jonathan, Nigeria’s First Lady left the country’s shores in cloudy circumstances since the first week of September and the public has been left guessing about her whereabouts and her mission for travelling. Before her latest rove, she noticeably disappeared from public glare after hosting the laughable African First Ladies Peace Summit in Abuja. Consequently, the media have been agog with conjecture regarding her state of health.
    We watch with amusement as tales of her alleged food poisoning, ruptured appendicitis to the comical abdominoplasty, a surgical procedure for tightening the abdominal muscles, popularly referred to as tummy tuck rent the air. Some even speculated that she lost her voice and was unconscious at the time she was moved out of the country, reportedly to Horst Schmidt Klinik, Wiesbaden, Germany.
    However, Mr. Ayo Osinlu, her spokesman, dismissed all these, ascribing her boss’ overseas travel to the necessity to take a “moment’s rest.” The Presidency has worsened the matter by keeping undignified silence. What is nevertheless clear is that Mrs. Jonathan, also a controversial Permanent Secretary in Bayelsa State Civil Service, has some health challenges, which to us, is human.
    What is abhorrent is the high secrecy with which the matter is handled as if making the issue a public one will sound the death knell of the president’s wife. This sadly is a repeat of the late President Umaru Yar’Adua episode when even whilst the president was dying, the cabal in the Presidency, still erroneously believed that Nigerians did not have the right to know the state of health of their president.
    We have come to realise that leaders hardly learn any good lessons from the past; otherwise, the current hoarding of information regarding the state of health of Mrs. Jonathan is uncalled-for. This symptom is gradually becoming routine in the African continent where leaders conceal their health challenges from public glare even when such is impeding the optimal discharge of the duties they swore to perform.
    Nigeria’s political leaders and their families habitually seek luxurious therapeutic attention abroad at state’s expense. The latest overseas adventure of Mrs. Jonathan is just a continuation of this awful trend; that is sadder because the nation has at its beck and call, enormous resources that could have been deployed to provide better medicare infrastructure through prudent management.
    Recently too, David Mark, Senate-President, skipped the ceremonial signing of this year’s budget because he was in Israel to seek medical attention for his aching teeth and eye. Yet, Prof. Onyebuchi Nwosu, Minister of Health, reportedly cancelled overseas medical trips by public officers for treatment that could be handled by medical institutions in Nigeria?
    At barely 52 as an independent nation, we are not comfortable that no hospital in Nigeria is considered good enough to handle food poisoning, appendicitis or even tooth problem that these two VIPs suffered from. The crass violations of this ministerial order by top ranking government officials and their families constitute an embarrassment to this administration.
    Nigeria reportedly expends annually, a colossal amount of $200million on medical tourism. We consider this to be a shame to a country that boasts of over160 tertiary medical institutions that are deliberately under equipped and maintained by powerful elements in government with despicable medical standard.
    We wish Mrs. Jonathan quick recovery despite official non-disclosure of where she is or what she is afflicted with. But the question remains: Where is the First Lady? Nigerians deserve to know.

  • Before we crucify or applaud Nnaji

    Before we crucify or applaud Nnaji

    In a country not accustomed to probity and accountability especially in public office, the resignation or sacking of a public officer over conflict of interest in the discharge of his or her official duties calls for serious reflection.
    The departure of Professor Barth Nnaji as Nigeria’s Minister of Power last week offered an opportunity to assess the commitment or otherwise of the Goodluck Jonathan administration to transparency in governance and how far or close we are to achieving that goal.
    Although it remains unclear whether the former Minister left voluntarily or forced to resign (another name for sack), his exit, coming on the heels of the administration’s new drive to promote performance in government through the recently introduced Performance Contract Agreement by Ministers could be an indication that the government was finally ready to deliver on its promises to Nigerians. And one of those promises is the provision of no fewer than 10,000 Megawatt of electricity to the national grid, a task Professor Nnaji was expected to achieve, and I think he was well on the way to doing just that. Given the very low level of electricity generation in the country prior to assuming office, achieving the present 4,400 Megawatt was no mean achievement by Nnaji and nobody could deny that things were looking up in the power sector under the former Minister. So, what went wrong? Why did he resign or given the boot?
    The man at the centre of it all said he had done nothing wrong, including the controversial conflict of interest accusation and left to protect the integrity of the Jonathan administration in the face of some powerful interest groups interested in manipulating the ongoing power sector reforms to their advantage. He had stepped on the toes of these groups in the course of his assignment.
    President Jonathan has equally defended Nnaji claiming he had done well but for a certain conflict of interest involving a company in which the former Minister had an interest showing active interest in the ongoing power sector reform.
    Depending on which spin on the sack/resignation you want to believe, the fact remains that something fishy has happened or is happening in the power sector which if not fished out and addressed immediately could affect the ongoing reform and our ability to generate enough Megawatts to power our economy. No fewer than 40,000 Megawatts of electricity, according to experts is needed to achieve this. How do we achieve this and in what way would the exit of Nnaji help?
    If truly the sacking of the former Minister was due to the conflict of interest as alleged by the Federal Government, then his exit could help on the long run as it is expected that nobody in government with interest in the power sector no matter how remote and no matter how highly placed would be allowed to participate in the ongoing reform in the sector. This expectedly should also include some serving state governors who are alleged to be eyeing some of the successor companies to the Power Holding Company of Nigeria (PHCN).
    The Federal Government would do well also to look beyond the issue of conflict of interest and address Nnaji’s allegation that some powerful interest groups whose toes he might have stepped on were behind his decision to quit. Although it is not uncommon in Nigeria for us to blame everybody but ourselves for our woes, the allegation should not be swept under the carpet as it is not unlikely that was the situation given the culture of insider abuse in Nigeria by people in position of authority in the country.
    Rail transportation that was once the backbone of haulage business in Nigeria is in ruins no thanks to what the people believe to be the activities of some powerful individuals within and outside the government with interest in road transportation. Have you ever asked why Nigeria Airways died and some of our private airlines are still flying even in the face of harsh economic environment? The same could be said about the defunct Nigerian National Shipping Line (NNSL) and privately owned Nigerian shipping lines. The truth is that here we promote more of our selfish interest above that of the nation and protect same. So if Jonathan could kick out Nnaji to protect his flagship power sector programme, he should also not hesitate to fish out and punish those others bent on thwarting the programme or manipulate it for their selfish interest. Can he do it? On the evidence of his swift move against Nnaji, he should not find it difficult to deal with this powerful enemies within. But as it is with Jonathan, don’t expect anything and if it happens, then you are lucky.
    Gauging from the reaction of members of the public to Nnaji’s departure from Jonathan’s cabinet, one could safely conclude that the former Minister is a man of integrity, but how he got caught up in this conflict of interest mess is still a surprise. More surprising is Jonathan’s feigned ignorance of Nnaji’s subsisting interest in the power sector even as a serving Minister.
    It is public knowledge that the former Minister had substantial interest in a company, Geometric Power Limited which is a major player in the power sector. I am sure Jonathan made him a minister with a view to tapping his expertise and experience garnered over the years in the sector, including his years at Geometric. As it is the practice elsewhere,the man put all his interest in his company in a blind trust, severed all relationship with Geometric and headed to the Ministry of Power to serve his fatherland with love and strength and faith. But how ‘blind’ do we expect this trust or even the Minister to be when a business venture that will naturally interest the company comes up in the Ministry? This is where the problem lies and I think this gave rise to the doctrine of conflict of interest. I think putting private interest in a blind trust while serving the public was a legitimate window to insulate a public officer from the accusation of conflict of interest. This Nnaji did and I think Jonathan knew about it before appointing him a Minister. The SSS must have discovered this during their investigation the report of which must have influenced the Senate confirmation during his screening. With this known to those who should know, at what point did Nnaji violate his oath of office? Did he do anything while in office that was not known as at the time he was being made a Minister or did he do anything that was anticipated then? If he had not done anything new or unknown to Jonathan before to warrant being sacked on account of conflict of interest then the charge of conflict of interest cannot stand. There must be something else behind his sack; there is more to it than we are being told. Could it be those big toes that Nnaji stepped on that are behind his sack? Only Jonathan knows, but the president will not tell us. What a shame? And if the media talk now he will say we are biased.
    Nnaji himself is not without blame in this matter. How can he be so naive to think that he can eat his cake and have it? The law on this conflict of interest thing we are told is very clear, to allow a breach is like allowing insider trading on the stock exchange; it is unethical. If anyone had assured him that “nothing will happen”, now he knows better. You don’t trust the promise of a politician. Now as for those calling for his reinstatement, it is rather too late as the Federal Government has conveniently placed this charge of conflict of interest on his neck and except he or Jonathan opens up on it and tell us the truth, the charge is enough to keep him away from public office at least for now.
    That pipeline fire in Lagos
    Lagos has again experienced another pipeline fire due to activities of vandals. And at the rate this thing happens we might need a dedicated security outfit to protect this important economic facility. And since our security agencies appear incapable of doing this who is better placed to do it than the vandals themselves; the pipeline thieves. If we could hand over the protection of pipelines in the Niger Delta to ex militants and pay them millions of dollar every year, then the vandals here deserve the same thing, don’t you think so? This is the implication of implementing stupid policies. Jonathan over to you.
  • How govt is resolving crisis, by minister

    How govt is resolving crisis, by minister

    Minister of Interior Abba Moro, yesterday said the Federal Government’s dialogue with Boko Haram is achieving results.

    He also explained that the government has adopted three variables to deal with the sect.

    The variables are curtailment, managing consequences of violence and dialogue.

    He said he has written to the Police and the State Security Service(SSS) to probe allegation of gun-running against him.

    He said he wants security agencies to conduct a search in all his houses and if he is found guilty of stockpiling arms, he should be dealt with according to the law.

    Moro, who spoke in Abuja, said the ongoing dialogue with the sect has reduced attacks and violence in the north.

    He said: “Let me say that the Boko Haram situation is a very complex situation, it is a very unfortunate situation. I want to believe that this present administration, a democratically elected government, believes that it has responsibilities for all Nigerians  that are law-abiding and going about their legitimate businesses without recourse to violence and Nigerians that one way or the other feel aggrieved and have taken the path of violence to express their grievances.

    “With the  evolvement of Boko Haram and its crises, the Federal Government took various steps and opened various options. One, the step of curtailment; two, the step of managing the consequences of violence and crises where they occurred; and of course, the noble cause of dialogue because experience has shown that in all war situations, at the end peace is only achieved through dialogue, through talking.

    “And so, the Federal Government has ordinarily made itself available for talking, especially if the proponents of Boko Haram and the crises open up and present themselves as people that can be easily identified and dealt with.

    “So, I believe that it is only in conformity with civilized norm that the Federal Government would continue to talk with members of the Boko Haram.

    And I want to tell you this. It is a combination of all these options that the Federal Government has taken (enforcing peace, enlisting support for peace through dialogue).

    “While we have not been able to come completely to grips with the Boko Haram crisis, you will agree with me that when you are talking, there is less violence.

    “And today, we are discovering that people have started  accepting peace as the only option for even achieving the results that they want to achieve through violence.

    On allegation of gun-running and stock-piling of arms to intimidate political opponents in Benue State, the Minister said: “I am not a violent person, I am a democrat.”

    He said a similar allegation was made in 2005 for which he was arraigned in a High court by the SSS and he was discharged and acquitted by the court.

    Moro added: “They even  went to the ridiculous extent of insinuating that I confiscated the arms donated to the Civil Defence Corp by the Nigerian Army. Statutorily, as minister of interior supervising the Nigeria Security Civil Defence Corp.

    “ I went to take delivery of the arms donated by the Army to the Civil Defence Corp, symbolic delivery and from that point that I took delivery of the crates, they were loaded into the vehicles of the Nigerian Army, escorted by the Nigerian Army to the depot, to the armoury of the Civil Defence Corp, the first and the last that I saw of those arms was when I was taking delivery of the crates.

  • ‘Why Nigerians must reject N5000 banknote’

    ‘Why Nigerians must reject N5000 banknote’

    Mr Steve Ononye is a former Assistant Financial Secretary of the Nigerian Bar  Association (NBA). He speaks on his expectations from the new NBA leadership, the proposed N5000 banknote and how to achieve speedier court process in the new legal year. Legal Editor JOHN AUSTIN UNACHUKWU met him.

    What are your expectations from the current leadership of the NBA?
    The NBA as you know is the umbrella that covers all the Lawyers in Nigeria and we hold same in utmost candor and respect. May I congratulate the new President of the NBA Okey Wali SAN and other members of the executive because it is without doubt that the Nigerian Lawyers in sincere recognition of their priceless contributions towards a better and more progressive NBA feels it honour-bound to elect them to various positions in the NBA Exco. I know without a flicker of doubt that the leadership of the NBA will in a humble, but forthright and honest manner steer the affairs of the NBA. I believe that as the President of NBA proceed to saddle the responsibility of the office, he will bring to bear his wealth of experience and impress the same in the discharge of this great and challenging national assignment.
    How best should NBA engage the government?
    I have confidence in the leadership of the NBA and it is indubitable that the entire members of the Bar that entrusted the leadership of the Bar on Okey Wali SAN are convinced enough about his ability and suitability to steer the leadership of the NBA. The NBA at this threshold will do well by engaging the government of Nigeria in a constructive dialogue on the meaning, scope and relevance of its rule of law. Without any doubt, the rule of law agenda of President Goodluck Jonathan requires clarification and sustained examination. The leadership of the Bar must therefore ensure that the rule of law agenda move beyond the realms of theory to concrete deliverables for the people of Nigeria. Achieving this requires sustained campaign around issues of respect for human rights, independence of the Judiciary and enhancing access to justice. All these and more I am confident that the leadership of the Bar is better equipped and competent enough to achieve.
    What role should it play as regards good governance?
    I trust the leadership of the Bar and believe the Bar will collectively and individually champion the case of democracy and good governance in our country especially this time we are facing a serious insecurity problem in the country. I pray that during the tenure of Okey Wali, SAN as the NBA President, the NBA will witness and achieve new and greater height.
    There is so much worry about the introduction of N5,000 notes. What is your view about this?
    The NBA has spoken its mind on this issue and I think that is my view and the view of other right thinking lawyers in the society.
    What is the view of the NBA in that respect?
    The NBA has resolved that the planned introduction of the N5,000.00 currency note is a shallow, poorly thought-out hare brained initiative by the Central Bank, which will devaluate the Naira, diminish the lives of Nigerians and push corruption and money laundering to new unimaginable heights. The argument of the Central Bank of Nigeria that this innovation will not promote inflation does not hold water. It will certainly promote inflation and devalue the Naira wholesale.
    How will this policy affect Nigerians?
    This measure I strongly believe will affect the lives of Nigerians in many ways. This plan by the CBN will rather distract Nigerians from the pressing national dilemma of insecurity and corruption. The problem we have in this country is not the introduction of N5,000 currency, one wonders how the introduction of five thousand Naira Note will help to put food on the tables of millions of Nigerians who cannot afford to feed themselves daily. It will rather worsen their condition. I don’t know what is wrong with Nigeria.
    New legal year has just started. What new improvements do you expect in our legal system?
    There is need to improve on some of our laws so that it will be in line with the current trends in the world.There is also need to harmonize all the High Court rules in Nigeria and may be to unify them to make the practice of law less cumbersome. There is need to improve on the caliber of persons being appointed as judges. For instance persons of integrity, who are knowledgeable in law. With particular reference to Anambra State where I practice, there is need to appoint more judges at the High Court of Anambra State. In our various courts in Anambra State we still experience congestion of cases. There is need to appoint more judges to help decongest the cases and improve the quality of judgment being delivered by the judges in the State. We have a serious problem in Anambra State with particular reference to Onitsha High Court where some Courts have over 20 cases to handle in a day. We need at least nothing less than 20 new Judges in Anambra State.
    You mean a judge has over 20 cases in a day to handle?
    This is no joke, Lawyers in Anambra State have a serious problem, if you are not a senior Advocate or a very senior Lawyer in the State especially in Onitsha High Court, you may spend the whole day in Court without achieving anything. I seriously urge the Anambra State Governor to play his own part to see that more Judges are appointed in Anambra State and he should take it seriously. I do not know why Governor Peter Obi of Anambra State believes that all is well with the Anambra State Judiciary. Something need to be done in that respect this new legal year.
    What office are you vying for in NBA Onitsha Branch, and what is your programme?
    Well, I am vying for the office of the Secretary of the Onitsha Branch of the NBA.  I have informed members of Onitsha Branch about my welfare package for members and I do not wish to say more. I believe I will serve the members of Onitsha Branch well because I have the experience.
  • ‘Nigeria suffers from lack of vision, national goals’

    ‘Nigeria suffers from lack of vision, national goals’

    Being text of a paper by former Chief Economic Adviser to the President, Chief Phillip Asiodu at the Mohammed Lawal Uwais Public Service Award lecture by the Nigerian Institute of Advanced Legal Studies (NIALS) in collaboration with  the Nigerian Television Authority (NTA)

    I feel greatly honoured to have been invited to speak to you today on this very important subject. The Public Service and the Transformation Agenda: Redefining the Rules of Engagement. I thank the Director-General of the Nigerian Institute of Advanced Legal Studies, Prof. Epiphany Azinge and the Organizing Committee for inviting me.
    Severe Challenges Confront Nigeria
    These are still very anxious times for most citizens of Nigeria. Massive challenges confront the country today – on issues of security of persons and property, political stability, economic growth and development. There are also the challenges of poverty alleviation, power infrastructure, education, health and the war against corruption. It is the role of the national leadership and the Government to address all these issues and to deliver services which will lead to improvements in the standard of living and quality of life of the general citizenry.
    The Public Service led by the Civil Service is the main instrument for implementing the policies and decisions of the Government. The members of the Public Service are often the only concrete manifestation of government for the citizens whether in the urban centres or in the remoter rural areas. The efficiency, effectiveness, conduct, fairness, integrity of the public servants often determines the citizen’s opinions about the Government. It is important therefore that the Government should clearly articulate and canvass its programmes and policies to enable the Public Service to commit to them and to deliver.
    The question immediately arises whether we have a new context for pursuing national development.  President Goodluck Jonathan in his inaugural address to the nation pledged that he would provide a leadership that would be “decidedly transformative” in all critical sectors. He re-affirmed the commitment to Vision 20: 2020 first made by the Yar’Adua Administration. Vision 20 : 2020 was elaborated under the Present Administration, the goal being to make Nigeria one of the 20 largest economies in the world by 2020AD and meanwhile to ensure the achievement before then of the Millenium Development Goals (MDGs), a drastic reduction of the proportion of Nigerians living below the poverty line, and significant improvement in Nigeria’s HDI score. It was agreed to have three Implementation Plans for the realisation of Vision 20 : 2020 covering the periods : 2010 – 2013, 2014 – 2017, 2018 – 2021. The 2010 – 2013 was developed in full detail. Subsequently, the Jonathan Transformation Plan 2011 – 2015 was elaborated which is coherent with the 2010 – 2013 Plan and anticipates part of the 2014 – 2017 Plan.
    The Need for a Vision or Agreed National Goals
    It is a critical necessity for a developing country to be inspired by a Vision – which clearly articulates uplifting goals and objectives, especially in a country like Nigeria inhabited by a large number of different ethnic and linguistic groups organized into a Federation where the development and cohesion of the nation is still very much “work-in-progress”. The absence of such a Vision to which the leadership and all the people were committed largely explains the floundering and sub-optimal performance which Nigeria has suffered over the past three and a half decades.
    The philosophy and goals of the leaders of the struggle for Independence, the promise of pro-people programmes that would follow the attainment of Independence inspired the remarkable progress achieved in the decade before Independence and the immediate post-independence years. One should recall the very rapid expansion of educational facilities, the introduction of free primary education, farm settlement schemes, and the beginning of industrialization, the formulation and implementation of the First National Development Plan with the economy growing under the 1962 – 66 Plan later extended to 1968 at over 6% per annum.
    Unfortunately, there were serious political problems, particularly the longstanding demand of the minorities in the three regions of North, East and West for three separate states, one in each Region.
    In January 1966, some elements in the Nigerian Army carried out a coup d ‘etat which ended Civilian Rule and the First Republic in January 1966. Political parties were proscribed and their assets confiscated. However, the coup makers failed to capture power. The rest of the Nigerian Army rallied round the G. O. C. Gen. Aguiyi Ironsi. We would never know if the coup makers had worked out a coherent long term programme for running the country and if they had beforehand identified a corps of convinced and dedicated persons who would execute the programme. There is no evidence that was the case. Certainly, the Military Administration of Gen. Aguiyi Ironsi which assumed power had not planned the coup and had no programme to be implemented on seizing power. Similarly, the coup of July 1966 which ended the Ironsi Administration and which installed the Gowon Administration was not inspired by a desire to implement any carefully articulated Plan for national development.
    What Type of Public Service?
    Fortunately for Nigeria, the Ironsi and Gowon Military Administrations left intact the professional, non-partisan, disciplined, merit-driven Civil Service developed over decades by the British Colonial Administration similar to the Civil Services inherited at Independence by the older Dominions like Canada, and Australia and never ones like India, Pakistan, Ghana, Jamaica, Trinidad and Tobago, etc.
    We may recall that the type of Civil Service suitable for Nigeria was discussed during the Constitutional Conferences leading up to Independence. The British Government representatives had recommended to the Nigerian leaders the British system. In January 1954, after careful consideration, the Nigerian leaders of the political parties in government and in the opposition, Dr. Nnamdi Azikiwe (NCNC), Sir Ahmadu Bello (NPC), Chief Obafemi Awolowo (AG), Mallam Aminu Kano (NEPU) and Prof. Eyo Ita (UNIP) signed the following joint-statement:
    “We fully support the principle that all public service questions including appointments, promotions, transfers, postings, dismissal and other disciplinary matters should be kept completely free and independent of political control.
    We hope that the traditional principle of promotion according to qualifications, experience, merit, without regard to race will be maintained”.
    The British Ministers had advised that “It would be disastrous to have a Civil Service under the control of the Executive, and for appointments to change according to the turn of the political wheel would lead to instability. In some countries such a system had proved nearly fatal”.
    So it was that during the crisis years of 1966 – 1970 of two military coups and the Civil War, Nigeria had a Federal Civil Service which had authority. Its morale was high. It was confident, professional, competent, non-partisan, disciplined, non-corrupt and much respected. It was dedicated to the service of the people generally. The Civil Service was able to :
    •Maintain day-to-day orderly administration of the country despite the escalating confrontation and defiance of the Federal Military Government by the Eastern Region Military Government;
    •Organize the campaign to rally the rest of the country to support the Federal Military Government in its desire to maintain one united country;
    •Insist on and eventually persuade the Military Authorities to invite well-known political leaders of the country into the Government to give credibility to the Government, ensure the people’s support and assure the external world that the Federal Military Government was not a military tyranny. Thus Chief Awolowo, Chief Enahoro, Mallam Aminu Kano, Chief J. S. Tarka, Mr. Wenike Briggs, Mr Okoi Arikpo and others were brought into the Government;
    •Plan and co-ordinate the required diplomatic effort to maintain the support of the UN, OAU and of nearly all sovereign countries for the Federal Government;
    •Organize the resources and logistics to enable the Federal Army grow from under 10,000 men to over 200,000 men and to prosecute the War;
    •Develop the 3Rs Programme (Rehabilitation, Reconciliation and Reconstruction) to address the immediate Post Civil War situation; and
    •Develop and launch the 1970 – 74 Plan.
    There is an attempt at the beginning of the 1970 – 74 Plan to suggest the adoption of some national objectives or ideology. Five principal national objectives are indicated :
    (i)A united, strong and self-reliant nation;
    (ii)A great and dynamic economy;
    (iii)A just and egalitarian society;
    (iv)A land of bright and full opportunities for all citizens; and
    (v)A free and democratic society.
    One must also give due credit to the competence and resourcefulness of the Regions’ Civil Services, particularly the Eastern Region Civil Service.
    In 1970, Chief S. O. Adebo, who was the Chairman of the Salaries and Wages Review Commission stated in his Report : “We have earlier referred to the arduous responsibilities which the Civil Service shoulders. We have suggested that it is on its creditable performance as a flexible modern machinery for the management of complex programmes that the survival, stability, progress and development of Nigerian society ultimately depend. This thesis has been amply borne out by our national experience over the last decade and does not require further elucidation”. Chief J. O. Udoji, The Chairman of the Public Service Review Commission also said : “It is fitting here to state our appreciation of the achievements made by Nigeria’s public servants, especially over the last 14 years. ………”.
    The 1975 Overthrow of the Gowon Administration
    The 1975 coup which overthrew The Gowon Administration may have been planned over a considerable period but again the planners did not develop beforehand a long-term plan for economic development and growth, or for continuing the task of developing and strengthening the Nigerian nation by pursuing concrete uniting and integrating programmes. However, the Murtala Mohammed / Obasanjo Administration which succeeded Gowon implemented three measures which have impacted negatively on governance and the development and cohesion of a Nigerian nation :
    1. Whereas, the creation of 12 states in May 1967 on the eve of the declaration of Biafran Secession was meant firstly, to address the old demand of the Middle Belt Movement in the North and the Calabar-Ogoja-Rivers State Movement in the East to complement the creation of the Mid-West Region in 1963, and secondly, as a strategic imperative to contain Biafran Secession Attempt, the 1975 division of the country into 19 states pandered to the desire of some influential sectors for dividing and sharing the national cake, not for baking it. The rapid expansion of oil production and with it the OPEC – led dramatic increases in oil revenues accruing to oil producers made it possible to indulge in this pre-occupation with sharing oil revenues while paying less attention to genuine development and growth of the economy. The formula for the allocation of federally collected revenues (more than 85% of it from oil and gas taxes) – 50% allocated in equal proportion to each state and 50% on the basis of population encourages the demands for further creation of more states.
    2. The traumatic massive purge of about 10,000 officials over a period of two months, without due process, involving officials from the rank of Permanent Secretary to the class of messengers being retired or dismissed, including some obvious leaders and role models, some without any terminal benefits or pensions destroyed the professional, non-partisan, fearless, prestigious, merit-driven Civil Service and Public Service inherited from the British Colonial Administration. In the process, the nation lost a great deal of institutional memory and valuable international connections.
    The more senior ones, who inspired by the ideals of the Pre-Independence movement and the patriotic commitments of the leaders of the First Republic, were still energetic in suggesting and developing policies, programmes and projects and who also imbued as they were with the old core values would be able to provide some checks and balances were swept away. The suffering, including the pre-mature death of scores of officials affected by the purge fuelled the resort to “make hay while the sun shines” an obvious euphemism for corruption which now threatens the future of the country.
    3. The new Administration abandoned the implementation of the 1975 – 80 Plan with its great promise of creating the basis for economic diversification and industrialization. Some very significant new projects were embarked upon while some properly costed Plan projects were aborted or not started. More destructively the discipline of planning was abandoned.
    This set the stage for the economic stagnation and the degradation of infrastructure, educational, health and other sectors over the next two and a half decades despite the fairly high level of oil revenues compared with the Pre- Civil War situation. The statistical data clearly illustrate this. Indeed the growth rate in the decade up to 1999 averaged only 2% per annum, while the population was growing at 3% per annum.
    The woes of the Civil Service were compounded by the promulgation of Decree No. 43 of 1988 which politicized the Civil Service. Under it the ministers, transient as they often were, could hire and fire civil servants; the functions of the Independent Public Service Commission were transferred to the ministries; the Minister replaced the Permanent Secretary, now re-styled Director-General, as the Accounting Officer of the Ministry. Although repealed in 1995 the great damage done to the Public Service under the decree still afflicts the Service.
    Vision 20 : 2020 And The Jonathan Transformation Agenda
    After the death of Gen. Abacha in 1998, democratic rule was hastily restored with the election and installation of Chief Olusegun Obasanjo as President in May 1999. Towards the end of his second term Goldman Sachs published a Report which listed Nigeria amongst 10 other countries, and which suggested that if Nigeria pursued all the right policies and achieved international competitiveness she could become one of the 20 largest economies in the World by 2025. The other countries are Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Pakistan and Turkey. We should note that even in this list we are No. 7. In adopting the target of the Report, the Nigerian Authorities brought the date nearer by 5 years to 2020!
    As I indicated earlier, the Government had prepared and launched the 1st Implementation Plan 2010 – 2013, otherwise called the 5th National Development Plan. This is now superseded by the Jonathan Transformation Agenda 2011 – 2015.
    Transformation implies a complete change in form or character. I have described at great length the present situation in Nigeria and how we arrived there in order for us to appreciate the enormity of the tasks before us in undertaking the revolutionary changes required to achieve the desired transformation. The Jonathan Administration emphasizes “The need for a holistic transformation of the Nigerian State” and the imperatives of “continuity, consistency and commitment”. In launching the Transformation Agenda the Government states that “The Transformation Agenda which is based and draws inspiration from the NV. 20 : 2020 and the 1st National Implementation Plan (NIP) aims to deepen the effects and provide a sense of direction for the current administration over the next four years. The Agenda is based on a set of priority policies and programmes which when implemented will transform the Nigerian Economy to meet the future needs of the Nigerian people”.
    The Transformation Agenda as you all probably know envisages total investment of N40.75 Trillion in the period 2011 to 2015 broken down as follows :
    Public Sector 60% – N24.45 Trillion
    Private Sector 40% – N16.30 Trillion
    Within the Public Sector, Federal Government is expected to invest N12.86 Trillion while the States and LGAs will invest N11.5 Trillion. The bulk of the funding required must come from abroad. Such funding will flow in only when Nigeria has successfully addressed all the issues which will make her internationally competitive and these are mainly issues of good governance.
    The Agenda has set out very good programmes and projects for human capital development, health sector, labour and productivity, the main growth sectors of agriculture, manufacturing, oil and gas, power, transportation, housing, ICT, FCT, Niger Delta, etc.
    However, the Government quite rightly states : “Nigeria’s inability to decisively tackle most development challenges such as poverty, unemployment, security, and deplorable state of infrastructure has been largely attributed to bad governance in all its ramifications. These include political governance, economic governance, corporate governance and effectiveness……….
    During 2011 – 2015, the policies and programmes directed at addressing governance challenges will focus on the public service, security, law and order; the legislature; anti-corruption measures and institutions; the judiciary; economic co-ordination; and support for private investment”.  I am quoting from a publication of the National Planning Commission.
    Generating Commitment and Enthusiasm for the Transformation Agenda
    I am sorry to observe that the vast majority of Nigerians are not aware of the Transformation Agenda – its contents and what it means for them now and in future. I am also not so sure how well the civil servants and the public service in general and even our legislators know the details of the Transformation Agenda. It is very necessary for the Government to give effective and sustained publicity to elicit the ‘buy-in’ of the general citizenry.
    The Transformation Agenda and the subsequent Implementation Plans for Vision 20 : 2020 should be publicized and canvassed continuously in many fora all over the country – in schools, universities, work places, barracks, professional societies, civil service clubs, social clubs, until the goals, objectives, targets, strategies, the sustained hard work and consistency required become accepted by the generality of our people. Vision 20 : 2020 can and should be made the nation’s rallying anchor for years to come, transcending conflicting partisan interests just  as the promise of Independence was a uniting anchor despite the partisan clashes before 1st October, 1960. Indeed such a general commitment and buy-in by various stakeholders will put added pressure on the Public Service and other Agencies to deliver.
    The President and national Leadership should find ways of continuously communicating to the general public their commitment and enthusiasm for the Transformation Agenda. I shall repeat some of the suggestions I made at another forum recently. Vigorous and disciplined implementation of the Jonathan Transformation Agenda, as well as leading the PDP and the nation to embrace all the aspects of good governance will launch Nigeria irreversibly on the path to unity and greatness. However, there are immediate difficult things which must be accomplished :
    · The present post – 1998 political parties formed even more hastily than those in 1979 have no roots in past political parties and usages. They have not yet articulated long-term party visions for Nigerian Society or the Federal Country which they seek to administer. Most of our new politicians are not aware of the self-sacrifice, the patriotism, the idealism, the promise and commitment of the pre-independence politicians to improving the welfare of the broad masses after Independence nor do they know about the discipline and self-restraint required in managing the lean resources of pre-oil Nigerian. I mean no offence. No fault of theirs. Most of the comments on the past in our media since 1966 have been self-denigrating and abusive of the national psyche.
             Let us remind ourselves that throughout British Colonial Rule the annual
             revenue of the Government never exceeded £40 million.  It was under
             Balewa after Independence that it reached £50 million, and it rose to £100
             million in the 2nd year of Gowon’s Administration and by then we were
              already engulfed in the Civil War. You can then try to imagine how frugally
             public funds were managed when you consider that the ports of Lagos,
              Warri, Port Harcourt, and Calabar, the 4000 miles of railways, the telegraph
              lines which crisscrossed the country from North to South and East to West
             the good schools which mine and earlier generations attended and from
             which we went direct to the best British, American and other universities
             were all developed with such meager resources!
    · The political parties and the party system have to be re-invented and re-engineered to become patriotic responsive vehicles for promoting the general welfare of all citizens and national greatness. They must adopt and believe in clear manifestos and programmes to promote national progress. Indeed, it will be desirable for all of them to base their programmes on Vision 2020 and let partisan competition and differences be on how best to achieve Vision 2020 and loftier goals beyond. Indeed, achieving the targets contained in Vision 20;2020  may take us beyond 2025.  What is important is to embark earnestly on its implementation.  The political parties must become effective organs for selecting and disciplining candidates for positions in the executive and legislature all of them subscribing to the same policies and programmes for moving the nation forward. Only such re-engineered political parties can help the President and his successors in achieving Vision 20;2020 and good governance.
    · The current epidemic of competitive corruption, and excessive greed amongst the political class and our elites in appropriating national resources to themselves must be stopped immediately.
    · The President should lead the nation to adopt and live with more realistic national remuneration scales for all those paid from the public purse. Nigeria’s per capita income is only N300,000 per annum. I would suggest the following maximum figures for aggregate remuneration (basic salary + allowances) per annum– President N30 million. Governors N25 million. Head of National Assembly, Judiciary, and Federal Ministers N24 million.
    · Proportionate reasonable adjustment of these figures down the various hierarchies.
    · Enhancement of present relative positions of certain groups like teachers.
    · Cost effective, transparent public procurement.  Over 200% inflation of costs have been reported in some instances these days.
    · Return to the old values of patient, disciplined life-time career progression as opposed to the current craze to achieve billionaire status, if possible, before the age of 35.
    · Above all, a far-reaching rationalization of the Ministries and Agencies of Governments taking into account the Oronsanye Report. There must be a drastic reduction in the cost of governance at Federal, State and Local Government levels. Let us remind  ourselves that the Federal Government of USA is run through 12 Departments (our equivalent of ministries) and no American State has more than 6 persons of the status of our state commissioners. Here some states have more than 24 Commissioners and scores of Special Advisers and Special Assistants.
    If above suggestions are strictly implemented, we would be aiming for target resource allocation of at least Recurrent to Capital ratio of 45 Recurrent, 55 capital, compared with the ratio of 74 Recurrent, 26 Capital in the Federal Budget of 2012. Considerable resources will then be freed to be invested in Education, Power, Transportation, Health and other priority sectors in pursuance of the Transformation Agenda
    We must recall the example of Balewa, the Regional Premiers, and all the Ministers, who in 1962 at the launching of the 1962 – 68 National Plan took 10% cut in their salaries to signal the need for national savings to help finance the Plan. That measure brought the salary of a Federal Minister below that of a Federal Permanent Secretary!
    I should add that in the First Republic, the salaries of a Professor, Federal Permanent Secretary and Federal Minister were about equal. A Federal Legislator who was part time then earned about 1/3 of the Minister’s figure. Compare the position today!
    The Private Sector in Nigeria also needs to improve corporate governance and to rein in excessive Executive Greed. Some of the charges in court against some bank managers, for example, made me extremely sad.
    A few constitutional amendments would also be useful. There should be provision for independent candidates. Some outstanding independent candidates will get elected and help to improve the calibre of members in the legislatures. Consideration should be given to increasing the membership of the State Assemblies to make it more difficult for state governors to direct and manipulate the State Assemblies. They should not be full time but have two sessions of 2 -3 months each a year. Their salaries and allowances should also be drastically reduced to free resources for capital investments. The Federal and Regional Legislatures before Independence and during the First Republic -1960 – 66 were part time.
    The 774 Local Governments recognized under the 1999 constitution are too many. Many of them are too small to be able to deliver their constitutional services unlike the situation before Independence and the First Republic where you had Local Governments like the Lagos City Council, the Kano Native Authority, and the Benin Native Authority etc. which were large enough and had the resources to maintain professional and technical departments, able to deliver good services in health, educational, and public works sectors. In our present circumstances of very atomized LGAs consideration should be given to enabling several LGAs to be grouped in viable catchment areas to establish competent Technical Boards funded equitably per capita by the co-operating LGAs to deliver services in sectors such as Educational Inspectorates, Teachers Commissions, Public Health Services, Rural Roads etc. There is no time to go into other desirable re-organization details to ensure service delivery.
    It is very necessary and urgent for the Government to continue the reforms towards the re-establishment of a greatly improved, re-organized, re-oriented, re-motivated, continuously trained and re-trained professional, non-partisan, empowered, well-remunerated, non-corrupt, investor-friendly Civil Service which is merit and productivity driven. This is to enable the Government deliver.
    Can Nigerian leaders and citizens rise to these challenges and do what is necessary to save the country? Let us recall some achievements in the past :
    · The achievements in the vast improvement in the provision of education for children, the establishment of plantations and farm settlement schemes and initiating industrial development under Regional Self-Government in the late 1950s and the First Republic up to 1966.
    · Despite the dire predictions of the doom of genocide and lynching which would follow the defeat of Biafran Secession, Nigeria surprised the world with the success of its programme of Rehabilitation, Reconciliation and Reconstruction under the 1970 – 74 2nd National Plan.
    · The impressive average annual growth rate of 6%+ from 1962 – 1966; and after the Civil War, the average annual growth rate from 1970 – 75 of 11.75%.
    · Supposing even after removing Gen. Gowon, his successors had continued with the disciplined implementation of the 1975 – 1980 3rd National Plan, and if under subsequent National Plans, 10%+ average annual growth rate was maintained for the next two decades, Nigeria would have escaped from poverty and under-development and would today be an African Lion or Tiger amongst Asian Tigers.
    Other Initiatives For Promoting National Integration
    Besides economic growth and improving welfare for all citizens there are other initiatives a patriotic leadership can take to foster national integration. Supposing following up on the early successes of the National Youth Service, the Nigerian leadership was able to introduce a Language Policy to foster national integration? This people like me would have urged on the patriotic nation-building listening leadership which we had then but for the termination of the Gowon Administration by the coup of July 1975. Such a policy would require each child to learn to read and write the local language where he is born. By the age of 10, the child begins to receive his instructions in English. The new policy would be that by the age of 12 or 13 when he or she enters a secondary school, he/she has to make a choice. If he is in the North, he must choose one Southern Language which he will be taught to speak, read and write. The chances are that the child will choose either Ibo or Yoruba. In the South, the child will likely choose Hausa as a Northern Language which he will be taught to speak, read and write. All secondary schools will have the necessary language departments.
    The upshot of this policy will be that within 15 to 20 years all educated Nigerians (like the Swiss) will, apart from their local language and English, be able to communicate in one or more Nigerian languages. With the ongoing inter-action and cultural exchanges and the pressures of globalization, you can imagine the situation among our children and grand children twenty years hence. Such a policy should be implemented after careful detailed consultations and preparation.
    Reform and Repositioning of the Civil Service
    A great deal of effort and resources have been devoted since 1999 towards reforming and repositioning the Civil Service and the Public Service generally to enhance service delivery. External organizations such as the World Bank and The British Government DFID are supporting some of the programmes. Many workshops and training programmes have been conducted and are continuing.
    The Bureau of Public Service Reforms (BPSR) was established in 2004 as a central coordinating office for reforms of the Civil Service. SERVICOM (Service Compact With All Nigerians) was also established to monitor ethics and efficient service delivery. More recently, the Government has adopted a National Strategy for Public Service Reform which we are informed will lead to the creation of a “world class Public Service, delivering government, policies and programmes with professionalism, excellence and passion”. The NPSR has three phases 2011–2013, 2013 – 2016 and the final phase 2016 – 2020. What is important is that the efforts will be intensified to achieve :
    · Effective and fair Governance of the Civil Service;
    · Organizational efficiency and effectiveness;
    · Professional and result-oriented civil servants;
    · Ethical and accountable workforce with a positively changed work culture;
    · Improved competence and capacity; and
    · Knowledge based workforce.
    It is critically necessary at this stage of Nigeria’s development to return to a merit-driven Public Service. The Federal Character principle should not be used to prevent it. It is better at the point of recruitment to stretch the net as wide as possible to ensure as much widespread representation of areas and communities as possible. But every candidate recruited must meet the minimum pre-set qualifications.  After recruitment, there must be training at various stages and good career planning to be undertaken by the greatly improved Human Resources Management Departments being developed. Once in the service promotion and advancement should be strictly on the basis of merit and productivity. The practice of transferring junior less experienced and not so competent officials from outside  organizations and other services to become bosses of their former seniors after contrived promotions in such external organizations must not be allowed.
    It is also important to implement a Remuneration and Rewards system for the public service that will attract the best talents. That was the situation in pre Independence days. As far back as 1955, the British Government adopted the principle of “comparability with private enterprise rates”. The USA adopted the same principle in their Federal Salary Reform Acts of 1962 and 1964. This principle could be applied in formulating the more realistic national remunerations which I recommended earlier.
    We were informed in a recent seminar of many significant milestones already attained in the ongoing Civil Service Reforms. Unfortunately, the image of the Civil Service and the Public Service amongst the citizens is not good. This may not be the fault of the Public Service. It does not operate in isolation. At the end of the reform process, the civil servant must earn and acquire a new  image – that of a friendly, helpful, prompt, competent servant of the people who is pro-investment and is a willing midwife to the birth of new productive enterprises and to wealth creation. He must discard the image of the arrogant intimidator or of the corrupt extortioner. It is then that he can help to deliver the desired Transformation Agenda.
    Need For A Call To Order
    To the outsider, the pace of the conduct of national affairs appears lethargic. There is a prevailing mood of insecurity and uneasiness amongst the general public, I believe that there is need now for a dramatic “Call To Order” by Mr. President that the leaders of all sectors of government and society must try to undergo the necessary drastic change of attitude and embrace all the aspects of good governance which entails :
    · The Rule of Law;
    · Efficient and prompt administration of justice;
    · Predictability, objectivity and consistency in government measures;
    · Respect for the sanctity of contracts;
    · Abandonment of the pursuit of self-enrichment as the motive for seeking political leadership and office;
    · Zero tolerance for corruption and the prompt application of adequate sanctions against offenders including seizure of all properties corruptly acquired;
    · Efficient and timely service delivery by all government agencies;
    · Return to planning and submission to the discipline of planning, respecting pre-determined priorities in the utilization of national resources;
    · Return to the principle of collective responsibility of government; and
    · Entrenchment of merit and the pursuit of excellence as a core.
    The Government should also embark on effective and sustained publicity of the Transformation Agenda –  what it means for all of us and why we should all support it and participate in delivery where we can. Nigerians are governable. The people need to be mobilized so that the Transformation Agenda can be achieved.
    I thank you all for listening to me patiently.
    CHIEF PHILIP C. ASIODU, CON
    ABUJA
    12TH SEPTEMBER, 2012
  • Failure of trial court to be addressed by parties on issues of non-suit …

    Failure of trial court to be addressed by parties on issues of non-suit …

    IN THE SUPREME COURT OF NIGERIA HOLDEN AT ABUJA ON FRIDAY, JANUARY 20, 2012 BEFORE THEIR LORDSHIPS

    WALTER SAMUEL NKANU ONNOGHEN JUSTICE, SUPREME COURT
    JOHN AFOLABI FABIYI JUSTICE, SUPREME COURT
    SULEIMAN GALADIMA JUSTICE, SUPREME COURT
    NWALI SYLVESTER NGWUTA JUSTICE, SUPREME COURT
    MARY UKAEGO PETER-ODILI JUSTICE, SUPREME COURT
    SC.70/2005
    BETWEEN
    1. KWASI KARKARI ADESEI
    2. JAMES ADJEI ….APELLANTS
    AND
    JOHN ADEBAYO
    (Substituting the deceased,) ….RESPONDENT
    AMOS ADEBAYO

    JUDGMENT
    (Delivered by Mary Ukaego Peter-Odili, JSC) By a writ of summons and statement of claim filed by the respondent to this appeal at the Gboko High Court against the appellants as defendants claiming the following reliefs:
    (i) A declaration that he is the sole proprietor of the School called Gboko International Nursery and Primary School.
    (ii) An order of the court directing an audit of the  school finances between January 1995 till  judgment.
    (iii)An order directing the defendant to refund any unaccounted moneys spent by them.
    The appellants as defendants at the High
    Court entered appearance to the suit of
    the respondent and filed a joint statement of defence and counter-claim against the respondent. In the counter- claim of the appellants, they claimed the following reliefs:
    (i) That the defendants are the founders of Gboko International Nursery/Primary School and as such entitled to be declared joint owners of the  said school;
    (ii) A declaration that the plaintiff is an employee of the  Defendants as nominal proprietor of the school
    (iii) An order directing the plaintiff to render account of the differences of N11,000 and N33,000 which he did not bank as directed by the school.
    (iv) An injunction restraining the plaintiff by himself, heirs, servants, agent or whosoever from further interference with defendant’s smooth administration of the school.
    (v) Any other order(s) this Honourable Court may deem fit to make in the circumstances.
    The brief facts as put forward by the appellants and which were not far from the findings of the two courts below are that the appellants are Ghanaians resident in Nigeria and sometime in October 1991, founded a school called Gboko International Nursery and Primary School.  The appellants subsequently invited the respondent in 1992 to join them in the running of the school, when they had problems with the Benue State Government.
    Somewhere along the line the respondent went to the Gboko High Court
    At some point the parties amended their pleadings at the High Court before the pleadings of the parties were finally settled.
    The matter proceeded to trial and the learned trial judge delivered his judgment on  October 14, 1999 and non-suited the plaintiff/respondent’s claim as well as the defendant/appellant’s counter-claim.  In the non-suiting, the trial judge had not given the parties opportunity to be heard before the order of non-suit. The respondent and the appellants being dissatisfied appealed and cross-appealed against the judgment of the trial judge to the Court of Appeal, Jos.
    The Court of Appeal sitting in Jos in a judgment delivered on March 19, 2003 allowed the appeal of the respondent and dismissed the cross-appeal of the appellants. It is against the decision of the court below, Jos that the appellants have appealed to this court by a notice of appeal filed on June 17, 2003.
    On the 25/10/11 date of hearing the appellants through counsel Sylva Ogwemoh adopted their joint brief of arguments filed on 15/1/2010 and deemed filed on 18/1/2010. In the brief were crafted two issues for determination viz:
    (i)   Was the Court of Appeal right to have dismissed the cross-appeal of the appellants after having found as a fact that the order of non-suit made by the trial court was made without an opportunity given to the parties to be heard on the issue of non-suit?(Ground 6 of the Notice of Appeal).
    (ii) Was the Court of Appeal right to have entered judgment in favour of the respondent on the totality of the evidence before the court? (Grounds 1, 2, 3, 4, and 5 of the Notice of Appeal).
    The respondent, through learned counsel, A. G. Ayua adopted their filed on 8/3/2010 and also adopted the issues as formulated by the appellants.
    Learned counsel for the appellants along the issues couched submitted that the Court of Appeal ought not to have dismissed the cross-appeal after holding that the non-suit order of the court of trial would not stand the order having been made without taking addresses from counsel on the issues of non-suit which that court had raised suo motu. He cited:
    Craig v Craig (1966) ALL NLR 165 at 169;
    Osayi v Izozo (1969) ALL NLR 150 at 152;
    Anyaduba v NRTC Ltd (1992)
    5 NWLR (Pt.243) 535 at 559 – 560.
    He went on to say that the failure of the trial court to hear the parties on the issue of non-suit before it was made amounted to a breach of the fundamental constitutional right to fair hearing as guaranteed order section 36(1) of the Constitution of the Federal Republic of Nigeria 1999.
    For the appellants was further contended that the Court of Appeal in an apparent exercise of its powers under Section 15 of the Court of Appeal Act, Laws of the Federation of Nigeria, 2004 entering judgment in favour of the respondent was a decision not deserved or supported by available evidence. That the court of Appeal clearly substituted its own views on the facts for those of the trial court. That the interference with the findings was erroneously made. He referred to the cases:
    Ebba v Ogbodo (1984) 1 SCNLR 272;
    Balogun v Agboola (1974) 1 AUNIR (Pt.2) 66;
    Nwosu v Board of Customs & Exercise (1988) 5 NWLR (Pt,93) 225;
    Nneii v Chukwu (1996) 10 NWLR (Pt.378) 265;
    Ajadi v Okenihun (1985)1 NWLR (Pt.3) 384;
    Oroke v Ede (1964) NNLR 118;
    Ngwu v Onuigbo (1999) 13 NWLR (Pt.636) 512 at 523;
    Ogbechie v Onochie (1988) 1 NWLR (pt.70)370;
    Oyewole v Akande (2009) 15 NWLR (Pt. 1163) 119.
    On their own part learned counsel for the respondent submitted that the Court of appeal was right to have dismissed the cross-appeal of the appellants herein. That the court below was also right to have exercised its powers under Section 15 of the Court of Appeal Act, 2004 in reviewing and re-evaluating the evidence of the parties before the trial High court and at the end dismissed the counter-claim and found for the respondent to whom, the Court of Appeal amended the judgment and upheld the respondent ownership claim to the school subject matter of the dispute. In support learned counsel had cited  several cases viz:
    J.M.Din v African Newspapers of Nig. Ltd (1990) 5 SCNJ 209 at 217;
    Asafa Foods Factory Itd v Alraine (2002) 10 NSCQR (Pt.1) 553;
    Dabup v Kolo (1993) 12 SCNJ 1 at 10;
    Adeyemi v Olakunri(1999) 12 SCNJ 224;
    Chief A. a. Fagunwa v Chief N. Adibi {2004}7 SCNJ 208;
    Balogun v Akanji (1988) 2 SCNJ 104; S.15 Court of Appeal Act, 2004.
    Having stated the summary of the submissions of counsel either way, I would like to start with a. brief excerpt of the judgment of the trial court which is as follows:
    “In the situation at hand since none of the  parties who claimed ownership exclusively of the other has established such ownership I  should dismiss their claims but I have seen that such a final action by the court will work hardship on the parties because a dismissal of an action raises certain estoppels. I think the ideal (sic) order to make is an order of non- suiting which is a final decision of the court to the effect that none of the parties has won.”
    On that decision the Court of Appeal in refusing the non-suit had this to say:
    “The requirement that counsel should be heard before an order of non-suit is made is no longer merely desirable. It is not only prudent but important. The consequences of failure to hear the counsel before an order of non-suit is made is that the order non-suiting the claim would be set aside, except it is very obvious and incontestable on the evidence before the trial . court and the law applicable therein that an order of non-suit is the only order it would make in the case in the exercise of its discretion.”
    From the above and what was before the court of trial and later at the Court of Appeal were undisputed facts that the appellants herein established the school sometime in 1991 and being Ghanaians, the Benue State Government under its Ministry of Education had it closed  as an illegal enterprise based on improper constitution of the indigeneity of the proprietors.
    To survive as an establishment the appellants in 1992 invited the respondent to partner with them under the guise of his being a teacher and also to sign and put forward his name as proprietor, he being a Nigerian. The school functioned with these disparate configurations and not surprising one party and this time, the respondent took a writ of summons claiming sale ownership. The conclusion of the trial court  clearly stemmed from a difficulty on this partnership where each party claimed sale ownership and nothing else, which situation brought about the non-suit of the trial court without first getting a hearing in that regard from the parties.
    On appeal, while acknowledging and rightly in my humble view that failure of the trial court to be addressed by the parties on the issue of non-suit which that court raised suo motu was fatal to the order.
    This court had laid down this rule from way back and it still remains the position. See Craige v Craig (1966) ALL NLR 165 at 169; Osayi v Izozo
    (1969) ALL NLR 150 at 152; Anyaduba v. NRTC ltd(1882)  5 NWLR (Pt. 243) 535
    Getting the matter of the question raised in the second issue as to  whether the Court of Appeal was right to have granted judgment in  favour of the respondent and awarded him the sole ownership of the property in the face of the available evidence and the clear findings of the learned trial Judge in that regard. The Court of Appeal had held as follows:
    “However, on the totality of the evidence before the court, in particular the evidence of the plaintiff/appellant who gave evidence as
    PWl, PW2, PW4, PW6 and Exhibits 1, 2, 4, 5,
    6A, 6B, lOA, lOB lOD, lOE, 11, 16 and even 18,
    18A, 18B, it IS my view that the plaintiff/appellant proved by preponderance of evidence that he is the sole proprietor of the said school. In that regard, I think the cross- appeal lacks merit and is accordingly dismissed.
    In the final analysis, the main appeal by the plaintiff /appellant succeeds and it is hereby allowed … Judgment is entered for the plaintiff/appellant in terms of the reliefs claimed in paragraph 18 of the amended statement of claim filed before the lower court.”
    From what the Court of Appeal did it is easy to see not only that he interfered with the evaluation and findings of the trial court without justification since what was on ground did not bear out to the path chartered by the Appeal Court and to the conclusion it came to. I see it necessary to quote the salient part of the judgment of the court trial in contradistinction to what happened on appeal and it is thus:
    “The plaintiffs’ claim that the old school which was In existence was closed down by Government and that the school as it now exists was solely established by him. I see this attempt as an effort by a drowning man to save his head. The evidence before me does not support that assertion. Presently the name of the school is the same, the operators are the same and there is no evidence that the school actually ceased functioning at any particular time. Moreso that Exhibit “18B post dates the period of the blacklisting of the school and all other activities in the running of the school in which the defendants participated post dated the period the school was blacklisted.
    From all I have stated so far in this judgment and from the entire evidence before the court in this proceedings it is not difficult to deduce a joint ownership of the school by the plaintiff and the defendants. Accordingly it is my opinion based on all the contributions made in the establishment and the running of the school Gboko International Nursery/Primary School as exposed by the entire evidence before me I do not agree with the plaintiff’s claim that he is the sole owner of the school. I also do not agree that the defendant own the school exclusively of the plaintiff. I see evidence of joint ownership as between the plaintiff and the defendants unfortunately all the parties are so selfish that none of them pleaded joint ownership of all the parties to this suit.”
    The Court of Appeal had fallen into certain error as entering into the trial of the case when it went on its own evaluation of the evidence including ascribing probative value to the evidence of the witnesses, a domain of only the trial court. See Ogbeche v Onochie (1988) 1 NWLR (Pt.70) 370; Ovewole v Akande (2009) 15 NWLR (Pt.1163) 119; Ebba v Ogbodo (1984) 1 SCNLR 272; Nneji v Chukwu (1996) 10 NWLR (Pt. 378) 265.
    The court below finding for respondent came from wrong premises as that court allowed itself to be persuaded that because the documents of re-application for the re-opening of the school bore the name of the Nigerian associate, of the appellants and that is the respondent, the respondent above must be the single owner. The court cannot ignore the relationship between the parties and how they came to work together. There must be a holistic appraisal of how the institution came to be and that the trial court made a good showing of.
    The morality or rightness of the arrangement between the parties is not what is before court, all that is the concern of the court is that there was joint ownership and then what next.
    In conclusion therefore since none of the parties had made a claim even if in the alternative upon which a clear relief can be rested the only option is a declaration that the appellant and respondent are joint owners of the school subject matter of this dispute.
    From the above and the fuller details of my learned brother, N. S. Ngwuta JSC I allow the appeal and order that the school is jointly owned by the parties.
    I abide the consequential orders in the lead judgment.
    REPRESENTATION
    Sylva Ogwemoh, Usman Mohammed Enesi, Albert Attah Agada for the appellant.
    A. G. Ayua for the respondent.