The Nation Newspaper

Tag: policy

  • Don advocates viable policy on healthcare delivery

    The Provost of College of Health Sciences, the University of Ilorin (UNILORIN), Prof. Ayotunde Omotoso, has advocated strong policies that will enhance healthcare delivery in Nigeria.

    He also urged government at all levels to give priority attention to the health of the people.

    Prof. Omotoso, who spoke in Ilorin, the Kwara State capital, during the induction ceremony of 114 fresh doctors of the college, said many viable health programmes have been designed by government. These should be well documented with a practicable implementation strategy in order to benefit the society.

    He said: “Social factors may directly or indirectly impact negatively on the health of individuals and the populace. For example, poverty and ignorance affect access to and maximisation of available healthcare services. Also, bad roads prevent quick access to the hospitals and lack of power may cause avoidable delays in surgical procedures.

    “The recent security challenges, namely kidnappings and terrorism, discourage doctors in the Diaspora from contributing their quota to national development.

    “The 21st Century doctor has to tackle health problems that are both individual and universal. A quick glance at the Nigerian healthcare system immediately reveals some of its strengths and weaknesses. The challenges with the health sector may well be a vista into a population-sized systemic defect.

    “While the medical training indeed is adequate and comparable with global standard, nothing quite insulates the doctor in Nigeria from the Herculean task brought about by extraneous factors. It is a social situation to which we must all rise against, putting all sufficiently trained hands on decks.

    “In Africa’s most populous nation, about 100 million people live on less than a dollar per day. The relationship between the economy and the health system is bi-directional. Many factors culminate into the health of citizens, underscoring the need for inter-sectoral collaboration.”

  • Ba hits out at Mourinho’s selection policy

    Demba Ba has accused Jose Mourinho of selecting his Chelsea side on name rather than form after struggling to break into the first team.

    The Senegal international scored eight goals in all competitions last season, including crucial strikes against Liverpool in the Premier League and Paris Saint-Germain in the UEFA Champions League quarter-final.

    However, his form in front of goal did not convince Mourinho to hand him regular starts and after just six in 29 appearances, he left the club to join Besiktas.

    Much to Ba’s frustration, Fernando Torres and Samuel Eto’o were preferred by the Portuguese head coach, something the striker believes was because they have bigger reputations in the world game.

    “Sometimes when you are at a club with a lot of big stars, the name counts for more than the statistics,” Ba is quoted as saying in the Daily Mail.

    “Unfortunately, it was like that in my case. But I am happy I moved from Newcastle to Chelsea and achieved what I did.”

    Before agreeing his four-year deal in Turkey, the 29-year-old had appeared close to a move to Chelsea’s Premier League rivals Arsenal, only for Mourinho to pull the plug.

    He made an immediate impact for Besiktas with a hat-trick on his debut in their UEFA Champions League win over Feyenoord and is looking forward to facing the club he nearly joined in the play-off round.

    “I always said the move to Arsenal was close,” he added. “I thought the deal was done and I would just go and do the medical, but it went another way.

    “Jose has said why it didn’t happen. He was honest, he just didn’t want to give them a striker who could score goals, especially with the arrival of [Mesut] Ozil.

    “Now I am playing Arsenal in such a big match. It’s crazy, but I’ve no regret on everything that happened.”

  • Complaints trail cashless policy nationwide

    Complaints trail cashless policy nationwide

    As anticipated, the Central Bank of Nigeria (CBN)’s cashless policy went nationwide over a month ago, precisely on Tuesday, July 1, 2014, after its efficiency was first tested in Lagos and a few other states two years back. In this report, Bukola Afolabi gives fresh perspectives on how the policy has fared thus far

    Understandably so, a lot of media hype greeted the introduction of the cashless policy, which began nationwide on Tuesday, July 1, 2014.

    The policy places a limit on the amount of cash that could be withdrawn from banks, with more emphasis on the use of mobile and internet banking.

    Besides, the policy allows individual customers to make cumulative withdrawal of N500, 000 daily across the counters and the ATM, while withdrawal above this limit will attract the payment of a processing fee of three per cent for the amount above the limit.

    For corporate customers, they are allowed to make cumulative withdrawal of three million naira daily while withdrawal above the limit will attract a processing fee of five per cent.

    Justification for cashless policy

    The apex bank brought the policy to reduce the use of cash and engender cash inclusion. It was also expected that it would help to reduce corruption and trace stolen money by government officials. It was also expected it would help to reduce and discourage armed robbery incidences as people would now move around with little cash as well as minimise revenue leakages.

    According to CBN statistics in 2012 when the policy commenced, an estimated N192 billion was being spent annually on cash handling and management in the country. If not curbed, the situation could lead to a continuous increase in the cost of cash management, necessitating the introduction of the policy, the CBN argued.

    Successes recorded with cashless policy

    As at the first half of 2013, the CBN report indicated that the volume and value of mobile payments increased during the review period to 5,982 million and N51.79 billion, from 1,668 million and N25.50 billion respectively in the second half of 2012.

    This was attributed to the significant rise in the number of mobile payment users, as well as improved public awareness in the use of mobile banking services. It also revealed that ATMs accounted for 91.42 per cent usage; mobile payments, 3.68 per cent; POS, 3.43 per cent while the internet accounted for just 1.47 per cent.

    However, to tackle the problem, the CBN had indicated that more POS have been deployed in the country with increment from over 5,000 deployed in 2012 to 153,167 as at April 2014.

    POS recorded transactions were 1,624,564 valued at N24 billion transactions in the month of April 2014, compared to 3, 197 transactions valued at N99 million in January 2012.

    Nationwide experience with cashless policy

    After its successful operation in Lagos, where the policy was earlier marred by inadequate preparation such as lack of sufficient Point Of Sales (PoS) machines, fluctuating bank network and few ATM machines, residents of other states where the policy has just kicked off are beginning to also lament the difficulty in abiding with the policy.

    Recall that as soon as the policy started in Lagos, residents went through lots of stress in an effort to abide with the policy. There were hues and cries about the policy as many lamented the difficulty they encountered trying to access their money.

    Though mobile banking has continued to gain popularity in a city like Lagos and more, PoS terminals are now available in major stores, as well as the introduction of various channels outside the banking halls that banks have put in place, yet those experiencing the policy newly are battling to adapt to it.

    Some residents of Ibadan, capital of Oyo State, Osun and Ondo states, and other parts of the country who spoke with The Nation, have started narrating the challenges they are facing adjusting to the new regulation.

    Mrs. Comfort Alabi, a plank seller at the Sango Market, Ibadan, who spoke on telephone, said she is yet to get used to the new policy.

    “It has not been easy adapting to the new policy. Because of the kind of business I do, I have been used to carrying lots of cash up to N1million to buy what I sell but now I can’t do that again because I can’t withdraw more than N500, 000. In most cases, you have to start explaining to some older people you transact business with who are not literate the reason you can’t give them all their money in cash. These are people who have been used to collecting cash and at times keeping it at home,” she lamented.

    In the same manner, Mr. Ayoola Somorin, also a plank seller, said: ” I agree it is a good policy, but the problem is that I expect that by now, some of the problems discovered when it started in Lagos would have been corrected by now before it was extended to other states, but we are also experiencing the same problems. Most times, you find it hard to withdraw from the ATM because of the large number of people at the ATM machines. The machines would have overworked, so by the time one wants to withdraw, you experience cash retract.”

    He further said that lack of stable bank network is making it difficult to make use of the mobile banking as, in most cases, he finds it hard to access his bank details on his mobile phones.

    “Another problem is that anytime I try to log into my bank accounts on my phone, it doesn’t go through. If it eventually goes through, it goes off again before I complete my transaction. I know some people who are experiencing the same thing. The mobile banking is not working well. If you go to the bank and complain, they tell you it is their network and tell you they are working on it without any improvement. However, I am optimistic that it will improve as time goes,” he said.

    Somorin also said the extra charges which apply for withdrawing above the daily officially stipulated amount would not prevent him from moving around with huge cash.

    From Ondo State, Mr. Adelola Ademola, a civil engineer in Akure, also said lack of enough ATM machines, knowledge of the operation of PoS, as well as illiteracy are some of the challenges threatening the smooth running of the policy.

    “There are not enough ATM machines here. The few ones available are not even working, making it difficult to make withdrawal from them. That is why many people still prefer to withdraw across the counter. I think banks should be encouraged to have more ATM machines to ease the stress of going into the banking hall.

    “The mobile banking is not even working because bank network always fails. Large percentages of transactions are still carried out in the banking hall. Where are the PoS? You can’t find them in most public places, only in few places,” he said.

    In Osogbo, Osun State capital, Adedayo Salami, a businessman, also said unstable bank network is one of the major problems they are facing.

    Unintended consequences

    The CBN had also admitted that there are challenges such as illegal charges on mobile transaction, and lack of enough PoS is still hampering the smooth running of the policy. According to the Director, Banking and Payments System Department of the CBN, Dipo Fatokun, mobile money operators have inadequate capital having spent more on agent network, marketing, amongst others, than they budgeted for at the beginning, adding that this has led to inadequate agent network in the country.

    “There is a difficulty in reaching the unbanked especially in remote areas as agents are not available. Apart from being concentrated in the urban areas at the moment, the agents are grossly inadequate,” he said.

    The issue of security is also not ruled out as electronic fraud has made many unsuspecting bank customers to fall victim to fraudsters as fraudsters hack into the online banking platform to dupe bank customers. There have also been cases of unauthorised withdrawals from ATM.

    One of those who had expressed concern over the challenges facing the policy was EPPAN’s Chief Executive Officer, Onajite Regha, who expressed concern over some of the challenges the policy was facing.

    “A lot of people have heard about the policy but many believe it does not affect them. The people concerned felt very upset about the policy, saying it’s a punishment, like the Timber Association in Sapele, Delta State. This was because they didn’t associate themselves with the merit of operating cash-less which involves conveniences and safety for the users,” she said.

    She added:  “Other challenges are the fear of fraud, fear of losing their phones, fear of ATM scam. During the awareness campaign, we discovered that many share their Personal Identification Numbers (PIN) with friends, relatives and office assistants with the ignorance of fraud. We also informed them on the new improvement of the CBN to provide a Consumer Protection Department, exclusively dedicated to the cash-less policy. The department operates 24 hours per day for complaints and problems regarding the cashless policy. We don’t want people to see the adoption of the electronic payment policy as a compulsion but conveniences.”

    To rectify the problems, efforts are, though, being put in place to make sure Nigerians enjoy the full benefit of the policy.

    Giving that assurance, the Executive Director, Business Development, Nigeria Inter-Bank Settlement System (NIBSS), Christabel Onyejekwe, had said then, “In the last two months, NIBSS embarked on a data clean-up exercise of duplicate and idle PoS terminals on our database and at merchant locations.”

  • New CBN policy may spur new fund raising as banks readjust capital

    A recent directive on exclusion of non-distributive regulatory reserve and other reserves in the computation of the capital base of banks and discount houses could quicken the pace of fund raising by banks and other financial institutions.

    Many banks have been raising funds in recent period. Diamond Bank is currently raising N50.4 billion new equity funds. Unity Bank had recently closed application list for a combined new equity issue of N39 billion. Wema Bank and Sterling Bank had earlier raised new equity funds.

    The Central Bank of Nigeria (CBN) last week in a circular to all banks and discount houses highlighted details on the exclusion of non-distributable regulatory reserves and other reserves in the computation of regulatory capital of banks and discount houses.

    The highlights of the circular indicated that the regulatory risk reserve will be excluded from the regulatory capital when computing the  Capital Adequacy Ratio (CAR), collective impairment on loans and receivables and other financial assets will henceforth not form part of Tier-2 capital, other comprehensive income reserves will be recognised as part of Tier-2 capital but limited to 33.3 per cent of total Tier-1 capital and while unaudited other comprehensive income gains will not be recognised as part of capital, unaudited other comprehensive income will be deducted from total qualifying capital.

    The circular, which implementation started immediately, was part of efforts to ensure more prudent assessment of the regulatory capital of Nigerian banks and in line with global efforts aimed at raising the quality and loss absorbency of the capital base of banks.

    Capital market pundits said the new policy would significantly impact on the capital adequacy ratios of banks and might spur them to seek additional equity funds to bolster their capital base.

    Increased fund raising by banks, which represent the most active block in the capital market and control nearly one-fifth of total market capitalisation at the Nigerian Stock Exchange (NSE), is expected to enliven the primary market.

    Analysts at Afrinvest (West Africa) noted that the new policy would further exert pressure on the banks’ capital adequacy ratios in the third quarter of 2014, when the policy will be used in calculating third quarter earnings and financial statements.

    The capital adequacy ratios of tier 1 banks had declined to 20.0 per cent by the end of 2013 as against 23.3 per cent in 2012.

    Analysts pointed out that the regulatory risk reserves accommodates the difference between the allowance for impairment losses on loans and advances based on CBN’s prudential guidelines compared with the loss incurred model used in calculating impairment charges under International Financial Reporting Standards (IFRS).

    A review of the banks’ capital adequacy ratios (CAR) as at first half 2014 showed that Ecobank Transnational Incorporated (ETI) has the lowest CAR at 16.0 per cent, at par with the 16.0 per cent regulatory requirement for systemically important banks (SIBs). FBN Holdings has 17.6 per cent, slightly above the requirement for SIBs. Among tier 2 banks, Diamond Bank has the lowest CAR with 17.3 per cent, which underlined the strategic importance of the bank’s ongoing rights issue.

    “The recently introduced 33.3 per cent Tier-2 ceiling of total Tier-1 capital, places a restriction on some of the banks that intend to raise further Tier-2 capital in the second half of 2014, hence, they may be forced to explore the Tier-1 capital’s equity raise option,” Afrinvest stated.

    Analysts noted that the new policy would increase confidence of foreign banks in Nigerian banks, based on the stringent capital requirement, which is in tandem with global counterparts, noting that in the light of Nigerian banks’ exposure to the Eurobond market, the prospects of volatility or depreciation in foreign exchange can be significantly absorbed.

    The new CBN policy comes in the wake of impending implementation of the Basel II by the Nigerian financial services authorities. The Nation had recently reported that Nigerian banks might raise some N400 billion in the current capital raising phase to strengthen their capital base in view of the impending implementation of the Basel II.

    Basel II seeks to strengthen banks’ risk and capital management through three main areas, otherwise known as pillars. The first pillar deals with minimum capital requirements, the second pillar deals with supervisory review process while the third pillar deals with processes relating to market discipline. The pillars generally ensure that the greater the risk to which a bank is exposed, the greater the amount of capital and required supervisory framework.

    After initial delay, Nigeria has set October 31, 2014 as the cut-over date for the implementation of Basel II.

    Market sources had noted that while the average capital adequacy ratio in the Nigerian banking industry is currently high and most banks are above regulatory benchmark, banks might need to support their adequacy ratios, which are expected to fall after the cut-over.

    Several analysts’ reviews on the banking sector have outlined capital raising as a major theme for the Nigerian banking sector citing new regulations and emerging business opportunities.

  • Ministry presents draft policy on competition

    To ensure an orderly development of the economy, the Ministry of Industry, Trade and Investment has presented a draft policy on competition and consumer protection to stakeholders, reports  JOHN AUSTIN UNACHUKWU

    The Federal Ministry of Industry,Trade and Investment has presented a draft National Policy on Competition and Consumer Protection to ministries and agencies.

    The event was the second leg of the efforts to produce an encompassing policy to regulate business competition in the country. The first leg for the South was held in Lagos in May.

    One of the organisers, Mr. Terhemen Andzenge the aim is to have a good policy to regulate businesses in the country.

    The Minister of Industry Trade and Investment Mr. Olusegun Aganga, represented by a permanent Secretary in the Ministry, Ambassador Abdulkadir Musa, said: “The Federal Government  beginning in the 1980s undertook major valiant attempts to combat the economic crisis that were precipitated by internal and external problems ranging from recession, high unemployment, inflation, rising fiscal deficits to recurring balance of account deficits and a huge debt overhang. These economic reforms led to the liberalisation of the economy and the opening up of erstwhile monopoly sectors to the private sector.

    “The dire situation the nation was in then threw up a sense of urgency that did not allow for a coherent sequencing of these reforms. There was the need, as is consistent with global trends, for a robust legal and regulatory framework to govern consumer protection and competition that would underpin the reforms. This would in turn forestall and/or minimise the emergence of private monopolies who would replace the public monopolies that Government was moving away from.

    “The Government of President Goodluck Jonathan in due realisation of this vital missing link, has, in the past two years worked assiduously to produce new legal and regulatory framework for competition and consumer protection. There is currently a draft federal Competition and Consumer Protection Bill being considered by the Federal Executive Council for onward transmission to the National Assembly for passage into law. The draft bill delineates the institutions, laws, regulations, orders, rulings and other implementation and enforcement tools that will allow competition and consumer protection matters to be dealt with. Mindful of the need to chart a coherent policy direction that will guide any future direction and legislative initiatives in the sector and conscious of the need to make the reforms sustainable there is a need to spell out a Policy Framework that will regulate consumer protection and competition matters in Nigeria. Towards this the Federal Ministry of Industry, Trade has prepared a draft National Policy on Competition and Consumer Protection which is contained in this brochure.’’

    “The need and benefits of a national policy for competition and consumer protection are many. These include encouraging enterprise, innovation, efficiency and a widening of choice. This, will in turn address cartel-like entities, anti-competition tendencies, protect the investing public and consumers; enable consumers to buy the goods and services they want at the best possible price; and contributing to national competitiveness.‘’

    Nigeria does not currently have an overarching framework for competition law and policy, although there are a number of legislations at federal and state levels which touch upon consumer protection.

    In seeking to meet the need for a unified framework of competition and consumer protection law, the Policy is erected upon a number of keys principles which are the effective prevention of anti-competitive conduct; fair market process; (z) competitive neutrality, (xx) fair pricing and national and international co-operation. ‘

    It’s objectives include: Promotion and maintenance of competitive markets in the economy, promotion of economic efficiency, protection from unfair trade practices generation of employment; and advancement of social and economic welfare.

    The policy shall apply to all market transactions and to all entities engaged in commercial transactions, including governmental agencies. Any exceptions to the scope of applicability of the Policy must be explicitly set out, and be directed at social or national objectives.

    In terms of institutional framework, the policy contemplate a synergy among the  Federal Ministry of Industry, Trade and Investment, on one part and on the other a  Competition and Consumer Protection Authority, as well as a  Competition and Consumer Protection tribunal, which are to be established.

    The ministry said: “The Competition and Consumer Protection Authority will act as an independent body responsible for the implementation of the provisions of the proposed Competition and Consumer Protection legislation. The tribunal, in line with international best practices, shall be constituted to adjudicate over disputes arising from the proposed enabling legislation and to hear appeals and review decisions taken by the Competition and Consumer Protection Authority. The Ministry of Trade will for its part act as the coordinating government ministry responsible for competition and consumer protection.

    “In implementing Policy, regard is to be had to the need to ensures synergy with other governmental policies; coordinate the Policy with related policies at the other tiers of Government; promote advocacy and support for competition and consumer protection enforcement; and create liaisons among the proposed Competition and Consumer Protection Authority and other sector-specific  regulatory agencies such as the securities and Exchange Commission, National Communication, Central Bank of Nigeria etc.

    “Like other policy documents, the National Competition and Consumer Protection  Policy contains a set of ideas, aspirations, goals and instruments visions towards an orderly development of Nigeria economy, and the promotion of competitive markets that protects and promotes the interests and welfare of consumers through the provision of completive prices and product choices to consumers. The policy document is therefore at expression of intent, and the commencement of a journey intended to be a process rather than a blue print. As its implementation proceeds fresh issues may arise. While this will be addressed through appropriate policy directives, a policy review will be undertaken where the need arises.

    “Indubitably, the Nigerian economy today stands at a historic crossroads. The widespread economic reforms programe pursued with consistency and calibration over more than two decades now, has unleashed an unprecedented growth momentum and pushed the development frontiers of the economy. The time has come to undertake the second wave of growth oriented reforms which can help in bolstering economic growth and tap the creative energies of our vibrant entrepreneurial force. The National Competition and Consumer Protection Policy can assist in realising this vision. It will help in reaping full growth dividends in various sectors   of the economy and respond to the needs and aspirations of our people.”

    Andzenge urged all stakeholders and the public who have input to make into the draft policy to do so in writing and forward to the committee soon.

    This, he said, would enable the committee to produce a better draft the would form basis for an all-encompassing Competition and Consumer Protection law.

  • Senator David Mark and a sports policy for Nigeria (II)

    For Eagles’ Welfare

    Who approved the staggering amount of over three billion naira to Mr Maigari’s NFF?

    We assume that football federations operating from the states and the NFF at the centre are supervised by the sports minister and the state sports councils.

    For every exercise embarked on by the federation, the councils or the minister of sports are the accounting officers. Whether it is the football association or even the judo federation, funds expended on behalf of the athletes for competitions, for the promotion of the sports must in the end be accounted for by the supervising ministry or council.

    We asked those questions once my sources in the presidency disclosed that funds had been approved to the NFF and that their president with a few of their members had departed in advance of the Super Eagles to the US and Brazil. At once, we knew the money would distract the boys and their coaches and of course put the little minds at the federation on a war path with the favoured travelling few of the federation.

    Predictably, Nigeria lost the energy to fight for the ball as Mikel Obi and Captain Yobo negotiated far into the night with Maigari and the hands keeping the dollars on how to pay the boys. Nigeria joined the ranks of Cameroun and Ghana, bickering over money and losing out on the field.

    In our time in Delta, when we moved Delta from the 12th to the number one, we experimented on the Kwame Nkrumah model, the Cuban sports policy we were able to define our winning programme to suit the environment. Money was fundamentally not the motivating proponent.

    On the other far side, notice the glorious performance of the Desert Foxes of Algeria. They were the best African side and the money paid to them by FIFA was donated to the refugees of Gaza. Keshi, Amokachie, and those fat boys with ugly hair dos should be reminded that Margaret, Hauwa, Rebecca some four months ago were taking their WASC exams in a village called Chibok. As the Eagles enjoyed and got paid to play the World Cup, the Chibok girls are still in the wilderness, cut off from civilisation.

     

    Do not cry for Brazil

    As if we have not been satisfied, as if we have not been offered everything, this samba World Cup festival will not end until the final breath-taking encounter.

    From the red corner, Germany the exponent of discipline proficiency, machine power, team efficacy would collide against Argentina in the blue corner.

    Led by the spritely Leonel Messi, Argentina is coming to battle to avenge on behalf of the Americas, the annihilation meted to Brazil by the Germans.

    Argentina led by Messi is coming to war, to prove that Messi is the undisputed best player of the planet. That Argentina, not Brazil, (since Diego Maradonna, 1986) is the best football nation.

    The Germans believing in man’s ability have perfected their football just as they made the best cars, organised the best fighting forces, built the best roads and bridges. Unlike others who believe in Allah, Jesus and babalawo to decide their fate on the football pitches, the Germans believe in their discipline and can unlike others predict their matches! Football is predictable.

  • Jonathan and the new auto policy

    The new automobile policy introduced by the President Goodluck Jonathan administration in October last year and programmed to fully take off in May and later shifted to July 1, this year has continued to raise dust among stakeholders in the industry.

    The battle is so fierce that it is being likened to the experience in the power sector where importers of electricity generating sets are alleged to be working against government’s reforms in the sector.

    Government believes that the new automobile policy will not only transform the sector by ensuring mass production of cars in Nigeria, but will also boost foreign exchange earnings through export of such made-in-Nigeria cars.

    It also expected the policy to greatly tackle the rising unemployment rate in the country.

    But some Nigerians who kick against the implementation of the policy believe that government was putting the cart before the horse by raising duty paid on imported vehicles without first putting the necessary structures on ground.

    This, they said, will impose more hardship on the citizenry, who mostly rely on used or second-hand imported cars, popularly called tokunbo cars.

    According to them, the 70 per cent, made up of 35 per cent duty and 35 per cent levy on imported vehicles being introduced under the new policy should be  imposed on imported cars when new vehicles start rolling out in large quantity from factories in Nigeria and at affordable prices.

    By the time the affordable made-in-Nigeria cars flood the Nigerian market, they argue, the importation of used vehicles will naturally go down as Nigerians will then decide whether to patronise locally-produced cars at affordable prices or pay exorbitant duty for imported cars.

    They currently believe that government is more interested in raising the import duty on imported vehicles than manufacturing new cars in the country, pointing out that the environment is not conducive to the automobile policy as it is characterised by poor infrastructure, poor power supply, high overhead costs and lack of technical manpower. They also maintain that the policy cannot be realised by executive fiat.

    Stressing that they are not really against the new policy but its implementation, they pushed for the right sequences to be followed in the public interest as they claimed that the present implementation is anti-people.

    Unless the government gets the policy implementation sequences right, they warned, Nigerian importers may likely shift to Benin Republic or other neighbouring ports which will result in loss of revenue to the Federal Government.

    The controversy surrounding the new policy was among the issues that dominated discussions at the Federal Executive Council (FEC) meeting, presided by President Jonathan last week. It subsequently, mandated the Minister of Trade and Investment, Dr. Olusegun Aganga to enlighten the public more on the new policy.

    Aganga said: “The article had claimed that the duty on the used cars is now 70 per cent from yesterday. That is incorrect. It is 35 per cent. It also claimed all used cars now coming into the country would pay duty of 70 per cent, which again is incorrect.

    “For all those in the auto policy programme, all those car assembly plants in the programme, the policy is that they would be able to import cars to meet the gap when you look at production and the demands in the country. They would be able to import those cars at 35 per cent. So, it is not 70 per cent.

    “It is only for those who are putting strain on our foreign reserves who have no intention to create jobs, who want to continue to remain traders that the 70 per cent applies to and this is to discourage trading. It is to encourage local assembly and job creation and unnecessary pressure on our foreign reserves.

    “Why would you import cars at 70 per cent while others are importing at 35 per cent? So, we do not expect to see anyone importing cars at 70 per cent. It was just a measure to encourage people to go within the policy group.

    “On used cars, in every country when you have auto policy, used cars are banned. Even when there was a meeting of the auto manufacturers last week, they pushed for banning of used cars. This government under this President, bearing in mind the socio-political environment we operate today, where most people import used cars, this government decided not to ban importation of used cars.

    “The second thing which we have emphasised is to make it easier for those who buy used cars to make sure that we work with the financial institutions to have car purchase scheme in the country, where they can borrow money to buy cars as long as you are working at very reduced interest rate not up to 20 per cent. We are looking at very low interest; we are at advanced stage of negotiating that.

    “We should be proud of the progress we have made since that policy was introduced in October. If we don’t implement this policy, the pressure on the economy of this country will be unbearable because we rely heavily on the importation of cars and this is not what we want to use your foreign exchange for.

    “Today, we spend more than $3 billion every year on importing cars. We spend another $3.2 billion and $3.4 billion importing used cars and spare parts. With every importation, we are creating new jobs in other countries.”

    With the latest news of shifting the imposition of 35 per cent duty on imported cars to January next year, it is hoped that government will really get it right this time round and Nigerians, at the end of the day, are not further impoverished than they are currently.

  • Policy implementation gone haywire

    Policy implementation gone haywire

    Those who make policies and recommend implementation methods need to find out what the best practices are elsewhere

    Like many other countries, Nigerian political leaders must have made many good policies. So must they have constructed bad policies in their efforts to govern the country effectively. Compared to many countries of its size in other continents (such as Indonesia and Brazil) and to smaller countries within its immediate region (such as Ghana and Cote d’Ivoire), the implementation of several of Nigeria’s policies leaves much to be desired.

    On many fronts, policy implementation in the country is replete with confusion and practices capable of demeaning citizens. But there is no other sector where confusion reigns appears greater than in the transportation sector, particularly travelling out and into the country. Nigerians who happen to see the way immigration and customs services are delivered in other countries cannot but wonder if Nigeria has no respect for its own citizens.

    Most Nigerians (outside members of the power enclave who have the privilege to bypass formalities at the airport) needing to use the airport to travel out are subjected to indignities at the hands of security personnel. For example, in front of every airline departure desk is a long desk on which travellers’ boxes are opened in front of other travellers. Women’s and men’s under wears are exposed to other travellers at the instance of anti-drug officers. Anti-drug men and customs officers run their hands through boxes of travellers, with the purpose of making sure travellers are not carrying drugs abroad. Bag owners whose underpants are turned into objects of spectacle for people unknown to them have learnt how to look on with embarrassment and with the hope that the officers would bring the invasion of their privacy to an end in good time.

    Customs men and women are also at hand to ‘x-ray’ boxes to ensure that boxes do not contain food items that are needed by Nigerians here at home. Such officers are quick to tell travellers to go and obtain certificates to export such limited food items, ignoring traveller’s explanations that the food is for personal consumption by them and their family members waiting at the other end for them. Nigerians in the Diaspora are not believed by customs officers to have as much right as their homeland counterparts to eat Nigerian food. Little do Nigerian customs officers with enthusiasm to ensure that substandard food do not leave Nigerian shores know that such foreign countries have more sophisticated methods of filtering food items that enter their own space.

    Travellers often wonder aloud why the country’s anti-drug police would not use sophisticated methods, like their counterparts in other parts of the world, to x-ray travellers’ boxes. Machines detect illegal drugs faster than police men can do by running their hands through women’s used underpants in boxes. Moreover, machines are not likely to mistake regular white powder for cocaine, as it happened not too long ago with respect to some Nigerian musician. Having a situation in which anti-drug enforcement officers run their hands through travellers’ boxes is also fraught with avoidable danger, especially the danger of agents working for politicians to drop illegal objects in the box of travellers belonging to opposition political parties. Drug detection is something that should be removed from human subjectivity. This must be why other countries invest in such machines and in training dogs to sniff illegal drugs.

    The story is not different for Nigerians coming back into the country. The first point of embarrassment is that travellers see how connected Nigerians and even foreigners are aided by men and women in uniform to avoid getting on the lines for holders of Nigerian passports and of other passports. When confronted about this by bold travellers, immigration officers are quick to reply that such persons have been pre-cleared, whatever that means. I found myself playing such a role recently and got punished indirectly for such audacity. After giving my passport to two uniformed officers sitting feet apart from each other, I was still stopped by the man whose attention I had drawn to persons going past immigration desk without submitting their passports to immigration officers. On my way to the luggage claim section, the stern-looking immigration officer I had asked questions earlier stopped me. He asked for my passport and I told him I had gone through clearance. He retorted that it was his job to confirm that this had been done. He took the passport and looked through every page before handing it over to me.

    Even after travellers collect their luggage and are apparently cleared by customs, they are still stopped on the way out by persons without any appearance to identify them as security personnel. The task in this case is usually to match the tag on the luggage with the copy given to the traveller at the point of departure. Shouldn’t this have been done before clearing customs, if it has to be done at all? A logical way to do this is to confirm that anyone claiming a piece of luggage is the authentic owner at the point that he or she removes the luggage from the luggage conveyor. Just a few days ago, a new mother coming from abroad was stopped after having been cleared by customs. The grand-mother pushing the new baby’s carrier was asked to present the claim tag for the carrier. She was told that there was no such tag, as the carrier was not checked in but carried into the plane with the baby in it. The ‘luggage officer’ (for want of better way to designate such workers) insisted that the carrier should have been tagged, but the grand-mother was not a push-over, she told the man to call in the airline’s representative.

    There is nothing wrong with the government having policies that prevent persons entering the country illegally, taking illegal drugs out of the country, or exporting food in commercial quantity without obtaining export certification. But the ways such policies are implemented show lack of imagination and sensitivity to citizens who need travel-related services. For example, the practice of putting names of infants on passports of their mothers can no longer be used by new mothers who delivered their babies abroad. Nigerian embassies no longer provide such services, and most of the time, they do not regularly have passport booklets. Consequently, new mothers have to obtain the passport of the country of birth of their new children and then ask for Nigerian visa to bring their new infants home.

    Those who make policies and recommend implementation methods need to find out what the best practices are elsewhere. Implementing a good policy in a bad way that dehumanises citizens makes nonsense of the good intentions of such policies.

  • CBN to enforce zero-tolerance policy on fraudulent borrowers

    CBN to enforce zero-tolerance policy on fraudulent borrowers

    The Central Bank of Nigeria (CBN) said it will pursue and enforce zero tolerance policy on fraudulent borrowers by enhancing the operation of credit bureaux and establishing a National Credit Scoring System for the financial sector.

    Its Governor, Godwin Emefiele, who disclosed this yesterday at the Finance Correspondents and Business Editors conference in Kaduna, said such exercises remain viable means of ensuring financial stability and achieving growth in the sector.

    Represented by its Head of Research, Charles Mordi, the governor said the apex bank is equally committed to strengthening the risk-base supervision framework for the banking system.

    He said the Financial System Strategy (FSS) 2020, which is part of the Vision 20: 2020 initiative of the Federal Government is aimed at developing a coherent and internally consistent blueprint for the financial system. Such, he said, would help in achieving the vision to make the country, a major international financial hub, and one of the top 20 largest economies in the world by 2020.

    The CBN boss, however, said the key indicator in determining the pace of growth of any economy remained the Gross Domestic Product (GDP), which is the standard measure of the value of final goods and services produced in the country by firms, government and households within a specific time.

    He explained that overtime, changes in the structure of the economy as well as pattern of relative prices in the base period could render the GDP irrelevant as a gauge of economic activities in a given year.

    Emefiele said to ensure that GDP indicator approximates economic realities of the period, statisticians needed to review the weights assigned to the various component sectors that make up the GDP in the base period. This, scenario, he said, makes it imperative to update the base period, a process commonly refered to as ‘rebasing’.

    He said data from the Nigeria Bureau of Statistics shows that real GDP stands at 1990 basic prices with 19-year lag considering 2010 as new base year. He said this lag poses a significant challenge in recording the accurate economic realities over a period of time.

    “It was discovered that within the 19-year lag, tremendous growth was recorded in the telecommunication, information technology and distributive trade sectors of the economy. It will therefore be unrealistic to stick to the 1999 base year figures given such structural changes and changes in price structure over these years,” he said.

    He said the CBN has incorporated unemployment as a target variable in the monetary policy formulation. This, he added, has exposed the scope of the Monetary Policy Committee (MPC) target variables beyond the conventional price and financial stability to include gauging the misery indices of poverty and unemployment.

    He said the CBN will, henceforth, target employment-generating sectors like agriculture, Small and Medium Enterprise (SMEs), oil and gas, power and health sectors as such would confront the weak production sectors, and the embarrassing youth unemployment and huge infrastructure gap.

  • Nuclear Law and policy in Nigeria

    Nuclear Law and policy in Nigeria

    BOOK REVIEW

    Title: Nuclear Law, Policy and Regulation
    Author: Prof. Epiphany Azinge (SAN)
    Book
    reviewer: Adejoke Adediran
    Pages: 283
    Publishers: Nigerian Institute of Advanced
    Legal Studies (NIALS)

    Nuclear law is the field of law related to peaceful use of science and technology for the benefit of people and its environment. This cannot be over-emphasised because it affects our daily lives one way or another and poses severe risks if not properly managed. Nuclear law also seeks to prevent the use of non-peaceful uses of nuclear energy and the proliferation of nuclear weapons by providing safety mechanisms which are developed solely for that purpose. Apart from this, legal frameworks are implemented to provide control and regulate activities related to nuclear energy and ionizing radiation which would ultimately help in sustainable development of the environment and its people.

    The International Atomic Energy Agency which is an international organisation helps to promote the use of nuclear energy for peaceful purposes while curbing its use for any military related activity. In Nigeria, the Federal Government is committed to harnessing nuclear technology for the various sectors and it aims to achieve these goals through the establishment of regulatory bodies for this purpose. For instance, The Nigerian Nuclear Regulatory Authority is mandated to regulate radiological protection of nuclear safety in order to ensure protection of life and environment from these harmful substances. The Nigeria Atomic Energy Commission (NAEC) is another body which was established with the aim of developing and promoting nuclear technology in Nigeria.

    The first chapter of this book is written by Prof. Nwogugu, E.I and titled: General Introduction to Nuclear Law and International Framework for Nuclear Regulations: An Introduction to the International Atomic Energy Agency. The writer begins by giving a brief history of atomic energy which may be traced back to the significant scientific developments that took place during the Second World War by the United State and as a result of which a movement arose to turn the development of atomic power for peaceful and humanitarian purposes. He also goes on to discuss how the International Atomic Energy Agency (IAEA) came to be which serves as the UN’s watch dog on atomic power matters and talks about the functions and objectives , members and the various organs of the Agency as provided for by the IAEA Act.

    The second chapter of this book is written by Peter Ademu Anyebe and titled: Review of the Mandate of the Nigerian Nuclear Regulatory Authority and Nigerian Atomic Energy Commission’. Here, the writer reviews the mandate of the Nigerian Nuclear Regulatory Authority which was established by former Nigerian president, Chief Olusegun Obasanjo as provided for by the Nuclear Safety and Regulatory Protection Act of 1995. He discusses the NNRA’s overall responsibilities for nuclear safety and radiological protection throughout the country. He gives examples of the robust and rapid developments of nuclear power for peaceful purposes in the petroleum industry, health sector, manufacturing industry, mining industry, construction industry, agricultural and water resources, education sector and research. He then goes on to discuss the duty owed by the employer towards its employees on the management of radiation protection. Lastly, he discusses the mandate of the Nigerian Atomic Energy Commission and explains the roles of some of the relevant regional and international organisations in the area of radiation protection. In his conclusion, he opines that these legislations and regulations meet the IAEA minimum international standards on the requirements for the protection and safety on the use of radiation and radioactive materials in Nigeria.

    Chapter 3 of this book is written by Omole Temitope and titled: An Examination of the Development of Nuclear Capacity for Peaceful Purposes. The writer begins by expressing that even though nuclear energy can be catastrophic when used for an evil motive, nuclear material and technology plays a significant role in the growth of an economy when used for peaceful purposes. He goes on to list regulatory authorities in Nigeria and their role towards a safe, secure and peaceful environment through implementation of peaceful application of nuclear energy. The Federal Government also established two University-based nuclear research and training centre to develop safe applications for nuclear technology in medical and human health, food and agriculture, management of water resources and the energy sector. Lastly, he discusses the roles of the IAEA , NESREA, Ministry of Environment , NNRA and the Nuclear Nonproliferation Treaty (which was established to stop proliferation of weapons and eliminate those in existence).

    Chapter 4 of this book titled: Analysis of the Chemical Weapons Convention 1993 and Syria’s Use of Chemical Weapons in 2012 and 2013: Implications for World Peace is written by Dr Lar. The writer discusses the continuous use of chemical and biological weapons by the Syria regime recently and Iraq in the 1980s which brought about grave consequences . There is an extensive collection of articles which dwells of the chemical weapons, 1993 in which State parties pledged to eliminate chemical weapons for the good of mankind and the writer seeks to analyse it in this chapter. The writer goes ahead to also analyse the use of chemical weapons by Syria and reactions of the International community. Most importantly, he discusses the chemical weapons, 1993 as well as the general obligations outlined in the convention as it relates to other international Agreements.

    Chapter 5 is titled: Dealing With the Challenges of Nuclear Hazards: The Place of Law and Policy and is written by Vivian C. Madu. The writer pinpoints the risks associated with the use of nuclear materials to human health and safety to the environment and the need for protection in order to safeguard life and our environment. She then goes on to highlight the standards, guidelines and recommendations by the international and regional organisations as well as various domestic frameworks which are essential in assisting countries establish and maintain national standards for the management of nuclear waste and hazards. She outlines the different types of waste and hazards associated with use of nuclear energy. According to the writer, efforts to help regulate nuclear activities because of the high risks associated to it are not regulated. She further goes on to discuss the hazards associated with nuclear energy usage. The NNRA and its role in the formulation of Nigeria nuclear laws and regulations are discussed as well as the offence, penalties and liabilities of users of these radioactive sources. She concludes by stating that there is need for compliance with national and international laws for the work of these bodies to be fully actualized.

    Chapter 6 is titled: ‘Nuclear Materials: Physical Protection and Emergency Preparedness and is written by Francisca Nlerum Ph.D. The nature, uses and effects of nuclear materials as well as the need for protection is discussed by the writer. She goes on to state that the responsibility for physical protection against nuclear energy and weapons rests with the government. The different conventions, laws and institutions channeled towards the physical protection of nuclear materials which are established in order to provide safe and secure production and usage as well as in times of emergency are also discussed. She makes it clear that even though most countries use nuclear energy for peaceful purposes, there is need to be prepared at all times owing to the fact that potential risks are inevitable. As a result, emergency preparedness is very essential to act as a support system in the safety of the utilisation of these nuclear materials in order to promote safety of life and environment. She then goes on to list various legislative, regulatory and competent authorities in aiding compliance of physical protection of nuclear materials both in and outside Nigeria and lists out some of their aims and functions.

    Chapter 7 is written by Awolalu Damilola Odunayo and is titled: Is Nuclear Terrorism the Next Phase of International Terrorism? The writer seeks to explore the issue of nuclear terrorism and the ever present role it plays in international terrorism. The writer analyses these issues in different ways. Firstly, he gives an insight into what terrorism is as well as mentioning the different forms of nuclear terrorism. Secondly, he delves into nuclear weapons and explains how terrorists gain easy access to these weapons before highlighting the risks attributed to nuclear terrorism. He explains the route taken by international communities to help combat nuclear terrorism and the laws and policies used to protect people against nuclear weapons and the proliferation of nuclear weapons. He concludes by noting that although there is a commendable number of international Agreements and treaties geared towards the prohibition of terrorism, it is not sufficient enough to deal with the present day acts of terrorism.

    Chapter 8, which is titled: National Interests, National Security Concerncs and their Implications on Nuclear Policy, is written by Shankyula, T.S. & Dr. M.M. Dura. The writer begins by reiterating the fact that there are numerous benefits gotten from the development of nuclear energy when used positively. He goes on to discuss the policies that are put in place by government to monitor and control national security, safety, and public interests as it relates to nuclear energy. He outlines the implications of these policies as it relates to national security in Nigeria and discusses national institutional framework and government policies for nuclear power development. He concludes by listing his observations and recommendations on national security which according to him would be achieved through implementation of policies that are generally viewed as acceptable for the interests of the general public.

    Chapter 9 is written by Morenike Ouwole Aguda and is titled: ‘Nigeria’s Quest for Nuclear Capacity and National Development’. The writer seeks to examine those plans which are currently ongoing aimed to providing more nuclear energy benefits with little adverse effects. He goes further to highlight these benefits and discusses the Nigerian regulating laws which he feels are not adequate enough to help minimise the risks involved in exploring nuclear energy as a power source in Nigeria while bearing in mind our level of environment coupled with the fact that our environment is different from that of developed nations.

    Chapter 10 is written by Uzoma Prince-Oparaku and is titled: Nuclear Capacity Building and the Environment. The writer brings to bare the effective control and monitoring of nuclear technology acquisition for peaceful purposes ultimately ensuring a sustainable environment. He also discusses the application of nuclear products as well as sets out effective ways of disposing hazardous nuclear wastes.

    Chapter 11 is titled: The Use of Nuclear Energy for Peaceful Purposes: Issue and Challenges and is written by Prof Nwogugu, E.I. Here the writer starts his paper by rightly stating how the use of nuclear power first came to light and because of the colossus destruction of life and property, there was need to devise means to ensure that nuclear power was solely used for peaceful purposes. He goes on to discuss the IAEA which was established to promote and foster the growth of atomic energy for peaceful use while trying to control its usage for military activities/purposes. The writer concludes by stating that even though the IAEA plays its role in providing assistance to developing countries through the application of nuclear techniques, it should desist from resting on its oars and do more in ensuring efficient performance of these functions in all areas of development.

    Chapter 12 is written by Anele Kalu Kingsley and is titled: Rogue States with Nuclear Capacity: Challenges to World Peace and Stability. The writer begins by giving a brief definition of the word ‘rogue states’ and goes on to give a brief background of its concept. He emphasises the need to end the development of nuclear weapons permanently as well as ensure that existing weapons are destroyed. He goes on to state that more efforts should be put in place to persuade these rogue states and terrorist groups to accept peace and democracy. The paper is divided into 6 sub headings. The first sub heading introduces the topic of the paper. The second sub heading gives meaning and definition to certain words for easier comprehension. The third sub heading tries to form a link between the rogue states and these nuclear weapons for better understanding of how these terrorists perform their activities. The fourth examines the legal framework for controlling arms and preventing the proliferation of nuclear weapons. In the fifth sub heading the writer discusses his recommendations on achieving world peace and stability. He ends on the sixth chapter where he concludes by stating that states should observe all their instruments which seek to curb terrorism and also be mindful to take drastic actions as it relates to foreign policy.

    Chapter 13 is written by Oladeji Ifeoluwa and is titled: The Development of Nuclear Capacity for Non-Peaceful Purposes: Contentious Issues and Responses. In this chapter, the writer discusses the level of damage brought about by nuclear material usage. He concludes by pointing out that there is need for all treaties relating to nuclear developments to be reviewed as soon as possible. He opines that these will help promote equality among all countries and in essence, ultimately help to combat atrocities carried out by terrorists through the use of nuclear weapons. The writer also adds that in the area of inspection, the IAEA needs to improve on its enforcement, monitoring and verification mechanisms.

    Chapter 14, which is titled: Ensuring Nuclear Safety and Liability for Nuclear Damage, is written by Dr M.M. Dura. The writer helps us to understand that because of the greater risks associated with nuclear activities than with other form of activities; there was great need for the liability for nuclear damage to be subjected to a different legal process. Still the writer is doubting that many countries have embraced this idea and laid down adequate principles especially amongst developing countries who also engage in the usage of nuclear energy through the development of nuclear power plants for peaceful energy to ensure that the environment as well as its people is safe from all forms of danger attributed to nuclear sources. The writer goes on to list the different types of liabilities as well as damages that can be awarded to the offended party. He discusses his observations as well as recommendations which includes taking preventive measures to ensure safety to individuals and the environment. He concludes by making it clear that even though the different conventions makes provisions for compensation of victims of nuclear disasters, in reality, these victims are hardly compensated and adds that States have a duty to ensure that these safety mechanisms are implemented and in cases where the offender is found guilty of causing harm to the victim, he should be held accountable.

    Chapter 15 is titled: Compensation for Nuclear Damage: The Role of Insurance and is written by Fola Daniel and Talmiz Usman. The writer seeks to highlight the role of insurance as it relates to compensation for damages caused by or emanating from nuclear activities. He goes on to discuss the meaning, scope and the role of nuclear damage insurance. Insurance in general is very important in restoring losses caused by one activity or the other and it is certainly not an exemption when it comes to compensation for nuclear damage.

     

    Comments

    The 283-page book comprises 15 chapters contributed by renowned scholars and researchers from within and outside the Nigerian Institute of Advanced Legal Studies. It is edited by Prof Epiphany Azinge SAN, the Director-General of the institute and Mr. Shankyula Tersoo.

    As the editor Azinge writes in the foreword, the book represents one of its kind in Nigeria and seeks to create awareness and stimulate further discussion on this all important aspect of scientific advancement. The book in my opinion has blazed a trail and represents a major contribution to knowledge in this new area of law.

    It is a commendable addition to the NIALS stated determination to advance the frontiers of knowledge in the field of law.

     

    Observations

    There were a few typographical errors as well as some editing errors which affected the flow of reading and some chapters failed to elaborately discuss the topic in view.

     

    Recommendations

    Overall, the book gives a good understanding of Nuclear Law. It discusses the legal framework for conducting nuclear energy and ionizing radiation activities. It gives an understanding on the characteristics of nuclear law, and seeks ways in which the development and safety of nuclear energy can be strengthened for the protection of its people and environment.

    I feel that stakeholders to Nuclear policy and research should embrace this well researched work for more enlightenment on the subject matter.