The Nation Newspaper

Tag: POWER

  • Power must shift in Abia, says group

    Power must shift in Abia, says group

    A group, the Abia Democratic Movement (ADM), has reiterated its support for power shift in Abia State, saying that it is the turn of Ukwa Ngwa to produce the next governor. The group said that Abia is not for sale to the highest bidder, urging stakeholders to insist on the rotational principle.

    The group rejected the campaign of calumny and blackmail against Governor Theodore Orji, who is leading the power shift agitation, warning that the resistance by anti-power shift elements may back fire.

    The leader of the group, Prince Sonny Aku, said the governor supported the zoning and Abia Charter of Equity, based on his principle and avowed commitment to fair play and justice. He spoke with reporters in Lagos, shortly after the meeting of the group.

    Aku said: “After due consultation, both at home and abroad, concerning the political situation in Abia and the unwarranted attacks on Governor Theodore Orji because of his resolve to make sure that power shifts to Ukwa Ngwa, I decided to call this press conference to send the message that enough is enough. Let no none take Abia for granted. Power must shift and the next governor must come from Ukwa Ngua.

    “Those who had rule the state cannot come back through the back door through their crony. It will not work. The governor must not be disturbed or distracted. He must complete all his projects and be allowed to hand over to an Ukwa Ngwa man. We will not sit down and fold our arms. We will not allow anybody to rubbish the governor. Any attack on the governor is an attack on Abias.”

    Aku, a prominent businessman and community leader, added: “We will do everything legally to stop the attack on the governor and the confusion they want to create to deny the people of Nkwa Ngwa their right. Abia will go where the governor will go. Governor Orji has followers and Abia people are with him. In 2015, power shift to Nkwa Ngwa is non-negotiable. Anybody who wants to truncate this agenda should wait and see what will happen in 2015. Those who have skeletons in their pocket will be exposed. Abia people know the source of their wealth.”

    He also alerted the state to plans by unpatriotic elements to create confusion and commotion, urging stakeholders to resist their nefarious activities. He said the plot by Orji’s predecessor, Orji Kalu, to weaken the administration through sporadic attacks, destructive criticisms and blackmail, would not work. Warning that the group would meet fire for fire, he said stakeholders were ready to move with the governor to any party.

    Aku recalled that Orji took over an “empty state,” characterised by lack of infrastructural facilities, absence of Government House and secretariat for civil servants and growing unemployment.

    He said: An Ukwa Ngua man will rule the state from the new Government House. Abia had no secretariat. Orji has put that in place. There was no High Court buiding before. Orji’s legacy projects should be completed. Those who made money from Abia, those who cornered the resources of our people have not deemed it fit  to invest in the state. Orji has no aircraft, ship, newspaper and real estate.

    “When Ukwa Ngwa man becomes the governor, we will invest in Abia and attract investors. I promise N1 billion investment. I have the connection and what it takes. I will attract investment to Abia. But, we are saying that the media attack on the governor to confuse him and frustrate the push for power shift should stop.”

    Aku recalled that he supported Kalu between 1999 and 2007. But, he pointed out that both went their separate ways when the former governor betrayed his predecessor by treating him as a domestic servant.  He said: “Kalu did not allow Orji to work. Kalu wanted to take us for granted.”

    The ADM leader said the agitation for power shift enjoyed the support of other ethnic groups and zones in the state. He said Nkwa Ngwa cannot afford to miss the opportunity to enjoy the slot from next year.

    Aku added: “The people of Nkwa Ngua have all it takes to govern the state. Kalu told us that he would not allow Ukwa Ngwa to succeed him. Nine out of 17 local governments are Nkwa Ngua. The population of Osisimo Local Government is more than three local governments in the North District.”

  • Mutiny: 12 Soldiers only spoke truth to power

    Mutiny: 12 Soldiers only spoke truth to power

    SIR: This is certainly not the best of times for the Nigerian military. It has continued to remain in the news for the very wrong and bizarre reasons. It is either the “late”? Abubakar ‘lunatic’ Shekau-led Boko Haram group is forcing its officers to consider a ‘tactical manouvre’ into Cameroun borders or officers within the force are engaging each other in needless internal bickering. As things presently are, our entire military set up appears to have lost the verve and patriotic bent to meaningfully prosecute the insurgency.

    The military is presently enmeshed in another round of fresh controversy. Just last week, the media reported the shocking verdict of a court martial that tried 18 military officers for allegedly attacking Major General Ahmed Mohammed, the General Officer Commanding of the 7th Division, Maiduguri over the mindless killing of their colleagues by insurgents. Delivering the judgment, leader of the court martial, Brigadier General Chukwuemeka Okonkwo, sentenced 12 of the 18 officers to death by firing squad. Expectedly, the verdict elicited loads of reactions, with many queuing behind the ‘condemned’ military officers.

    These men truly don’t deserve to die. Their action only drew global attention to the chronic stench, endemic rot, mega fraud and cesspool of corruption that the Nigerian military has become. Their action exposed a military where its top brass feed fat on its budget, sell arms and ammunitions to insurgents and arms its junior officers with dane guns to confront heavily armed insurgents.

    Frankly speaking, those presiding over the affairs of the entire military make-up in Nigeria are the very problem bedeviling the institution. These same elements are chiefly responsible for why the war on terror isn’t recording spectacular success as expected. The surest way to meaningfully take this war against terror to the bedroom of Abubakar Shekau (we learnt he’s dead?) and his fellow lunatics is to wield the big stick on the military’s top brass. Certainly, some of them should be shown the next available exit route. The nation cannot continue to shoulder the enormous wage bill of trained military officers who cannot live up to the task of stoutly defending the territorial integrity of Nigeria.

    Before either the President or the head of the military signs the death warrant of these soldiers, Nigerians and indeed the world request that the army’s top echelon should first and foremost subject itself to public scrutiny. Those who wish to go to equity must keep their hands clean. The military’s top brass should tell us in unambiguous terms how they have been expending the huge yearly budget approved for the entire military. We expect them to give detailed account of how they have spent or managed the money. It is only after then that they can go ahead to approve the firing of these men accused of committing insurrection.

    I keep saying this. The alleged attack on Major General Ahmed Mohammed wasn’t a premeditated one. The said soldiers were only helpless and frustrated. They felt the system deliberately ordered them to the war front without first and foremost providing them with all they needed to prosecute the war.

    This is one case that most Nigerians won’t want to see it go the way of others. These guys weren’t conscripted into the Nigerian Army. They willingly applied to serve their fatherland, with the hopes that our country will be better for it at the end. Unfortunately, instead of getting medals, cash rewards or national honour for service to fatherland, the same country has concluded plans to end their lives rather prematurely by facing the firing squad should their appeal fails to scale through.

    You cannot beat a child and expect him not to cry. We sent them to the war front with dane guns and expect them to crush Boko Haram in one fell swoop. These 12 military men only spoke truth to power and nothing more.

    • Abdullahi Yunusa

    Imane, Kogi State

  • ‘Why power supply is low’

    ‘Why power supply is low’

    The former Minister of Power, Prof. Barth Nnaji, has attributed erratic power supply to inadequate gas supply and transmission infrastructure.

    Noting the reforms in the sector, he lamented that the gains had been limited because the transmission network was inadequate for the nation’s power needs.

    Nnaji was delivering an address at the Breeding Leaders for Empowerment and National Transformation (BLENT) Service of The Redeemed Evangelical Mission (TREM), in Lagos.

    The event, with the theme: “State of the Nigerian power sector: issues, alternatives and prospects”, attracted policy makers, stakeholders and key players in the power sector.

    Nnaji hailed the massive investments to improve power supply, but said the situation would take years before yielding results.

    The  Bishop of TREM, Dr. Mike Okonkwo, blamed the presence of a  cabal for the rot in the power sector.

    He said saboteurs were not punished even when caught, adding that this encouraged others to do likewise.

  • Farmers explore rice wastes as power source

    Farmers explore rice wastes as power source

    Although the Federal Government has adopted a number of policy reforms to increase power generation , the impact has not been felt by rural farmers who live far away from the national grid.  Farmers  are  exploring  the  possibility  of  converting rice husks into  electricity to reduce diesel consumption and save money as well as the environment. But how far can this go? DANIEL ESSIET reports.

    At Songhai farms in Porto Novo,  Republic of Benin, none of its farm produce is considered a waste. This is due to skillful management of agric waste through recycling.

    Consequently, Songhai integrated production system which is based on diversified agriculture  thrives on expertise in animal husbandry and fish breeding as well as conversion of wastes and use of bio-gas for power generation for the farms has become a model for farmers and  agribusinesses to copy.

    The  centre, under the leadership of its  President, Reverend Father Nzamujo,  has  not only  achieved high  yields from its  production, it has also applied bio waste to generate  electricity.

    Indeed, the major challenge for most rural farmers in Nigeria is how to generate electricity at farm mills. Not  helping  the issue  is the  fact  that a  large numbers of farmers  are  not   connected  to the  national grid.

    Minister  of Agriculture and  Rural  Development, Dr  Akinwumi Adesina said  agricultural productivity growth is vital for stimulating growth in other parts of  the economy. But  achieving  accelerated growth requires effective power support to the millions of  small  farmers,many of them in remote areas.

    For this reason, he said the government would focus on pragmatic  ways to  promote  high-value agriculture linked to a dynamic rural farm sector.

    Ultimately, to experts, success will also depend on concerted action to confront the challenges of power supply at the farms  as  well  as technologies for  food staples production.

    To  this end,  experts  have  identified  various agricultural residues within  the  country   which can be used for electricity generation.

    One is rice husk. Rice husk is the outer cover of rice that accounts for about 20 per cent  by weight of the rice.

    One  of  the  promoters is   Chief Operating Officer, Wems Agro Limited, Mr  Henry Bagenal who  is  convinced about the country becoming the  future  hub  for  rice husk generated  electricity  on  farms.

    To  demonstrate  this, his  organisation is  acquiring  a  5400 hectares  in Akotogbo, Ondo State  for   rice production.

    The farm is going to be  a centre of excellence in sustainable farming practices, including  soil conservation, power generation and intermediate technology.

    Akotogbo will become a focus for sustainability based on the demonstration farm for power generation that will be created within the farm settlement.

    The company has a strategy aiming at increasing the use of alternative energy to power its operations. From  2016, the  operation will be powered by rice husk. The operation, however, requires 2,000 tonnes of 5300 tonnes produced. Of this, what is left will be used to produce electricity through a steam driven turbine for farm use and for local community.

    He  sees a  lot  of  farmers  buying   into  the  project   as  rice mill owners  face problems disposing husks. Although, five per cent of the quantities of husks have been utilised for bedding by the poultry farmers and between 15 and 20 per  cent  as cooking fuel, however the remaining between 75 and 80 per cent goes to wastes.

    Work will initially take place in Akotogbo but the technologies will be made available to other places. The use of husk power, he   noted, allows cheap electricity to reach farms without relying on expensive and polluting electricity.

    He noted that the long-term goal of the company is to impact positively on the livelihoods of rice farmers.

    Its Executive Director and Chief Executive, Mr Rotimi Akinsola said  green economy investments, initiatives and policies are making headway in developing countries and emerging economies.

    Akinsola said a technology that converts rice husk into electricity is gaining ground in some farm  settlement across the world.

    The technology is simple, and well-suited for small rural villages with limited technical capabilities

    For this reason, he said making rice husk -based power generation technology indispensable in farmlands around Ondo State will be helpful to the local  economies.

    Aside from  creating   job opportunities for the locals, he   said biomass gasification plants are eco-friendly as they replace diesel and petrol with carbon-neutral biomass-derived electricity.

    In Ondo State, a large portion of the electricity production is from fossil fuels causing concern for energy security as well as environmental emissions.

    To this end, his organisation is proposing biomass as one of the alternative (renewable) energy sources of energy which can offset the use of fossil fuels.

    Akinsola said the company is committed to producing rice profitably and making it affordable for the man on the street.

    He said: “All rice will be produced sustainably, using the system of rice intensification and other innovative and modern farming practices, while creating over 2500 jobs and providing a range of social benefits for the people of Akotogbo. It is hoped that this project will act as catalyst for the region to become a hub of sustainability.

    “The project will grow from 600 ha in year one to 5400 ha (double cropped) in year five, and produces profits from year one.”

    According to him, there is up to 25,000 hectares available in Akotogbo and Wems Agro has secured a long-term agreement with the landowners.

    He reiterated  that  the  company  intends to take advantage of the  market opportunity and help Nigeria become self sufficient in rice, and to develop a profitable agricultural industry in Ondo State.

    He  said  greater investment to double rice production is needed to reduce dependence  on  Thailand  rice and  improve livelihoods. He  believes that rice can help move people out of poverty, beyond food insecurity.

    He   said  Nigeria  is  a net importer of rice with nearly 40 percent of the total rice consumption coming from the international market. In the medium and long term, tax on all critical inputs, basic agricultural machinery and equipment and post-harvest technologies needs to be reduced. Poor uptake of improved higher-yielding rice varieties has also kept production low.

    He  said  long-term focus should be on increasing productivity. “Land extension accounts for only 30 per cent of the productivity gains,” he said.

    He said his company is joined together with  the Ondo State government  in an  agricultural collaboration to help farmers. The collaboration will focus on instructing farmers in improved production, post-harvest handling and marketing methods.  He said the  centre will act as a sustainable innovation hub where low-tech solutions could be developed, created and displayed with the help of the community.

    This demonstration farm should act as a centre where the aims, values and benefits of the project are showcased.

    Its Director,  Human  Capital, Mrs Sally  Bagenal  said the  project  will  create  jobs  and  inject $2.7million into the local economy in wages over five years.

    According  to her,  local representatives of the  community  would  be included in the stakeholder consultation process and the  people  are   in favour of the project because of the added income to local farmers.

     

  • ‘Kaduna is ripe for power shift’

    ‘Kaduna is ripe for power shift’

    Kaduna State All Progressives Congress (APC) governorship aspirant Alhaji Salihu Mohammed Lukman spoke with ABDULGAFAR ALABELEWE on his ambition and the people’s quest for power shift in the Northwest state.

    How prepared is the APC for the challenge of 2015 elections in Kaduna State?

    Let me say that the APC has been a work in progress, unlike any other party. Anybody who understands politics very well should know that politics is an art of negotiation, constant negotiation. The process of aggregating interest is almost a lifelong process. We discover each other. We started with so many people. So, in the process,  people d ons, and along the way, they had to leave the party and move to other parties. I don’t think anybody would hold grudges against them. I think it is the process of discovering ourselves and we discover new people who were not in the party and are playing very active role. I think that is the beauty of it. On the party, I will say, is opening up beyond the imagination of anybody and in the process of opening up in some way, they are making some people uncomfortable who ordinarily would not want an open party because they want the party to be controlled. But, I think that at the end of it all the APC would emerge stronger, would become a party that is controlled and directed by Nigerian citizens and  therefore, the interest of Nigerians who would guide whatever the party is going to do. I think that will be my take on it.

    What is your assessment of the PDP administrations in Kaduna State in the last 15 years?

    I think that is stating the obvious, as you know I always make the point but if you take indices whether we respect human welfare or we respect infrastructural development in the country, certainly, Nigerians have a grace. Let us take indices for instance, when the PDP government took over power in 1999, unemployment was about 17 per cent, poverty level was in the region of 30- 40 per cent. Today, officially from the Federal Office of Statistics, unemployment is almost 23 per cent going to 24 per cent. This is as far back as 2012; I don’t know what the statistics is today.  It largely could have worsened. Poverty level almost 70 or 60 something per  cent. With reference to that, things have gotten worse with reference to infrastructural development; light situation has remained a tale by moonlight. With all the resources being pumped into the sector, you cannot get light. It has gotten worse, even in urban centers if you don’t have a generator, you cannot enjoy light. If you go to other sectors like the transport sector, things have really gotten worse, although they keep citing the rail project, which is not yet off the ground. We have seen quite a lot of work, but, until we see it, we cannot talk about it. Is it air transportation you are going to talk about? Or is it the flooding that happened last year, which we were told it was on account of the fact that the river Niger has not been dredged for decades and the PDP government I am sure did give contract about dredging the River Niger, but yet we are still stalk in that situation. Our urban centers are all congested. There is nothing to show about it. On health, Nigerians now go on health tourism more than ever before, nobody has imagined that. Education is the same situation. Almost everybody is sending his children to private schools either in Nigeria or abroad. So whatever aspect you look at we have regressed and however you want to be diplomatic about it, the people in charge have to take responsibility. I cannot but say that the  PDP government is a failure and that is why we must all wake up and pose a strong alternative to the PDP.

    Can the APC defeat the PDP in Kaduna State?

    My strong position is that we have no alternative, but to work hard and take over the government of Kaduna State and in doing that we must learn from our past mistakes and build a strategy that would really deliver the state to the APC in qualitative way. I am not one of those who just want the PDP defeated for the sake of defeat. I want to see the real alternative that is why I virtually engage everybody to say well look, we must work hard for the alternative. What is our past mistake? The first issue I would raise is the fact that the opposition parties were never united. We go to primaries and those who contest primaries, when they lose they jump ship and go to another party. Their supporters who might remain in the party would start anti-party activities. That is the first. The second issue is the quality of the candidate opposition party fielded. In most cases, you find out that from 1999 to date, almost all the gubernatorial candidates of the opposition party are people who have crossed from the PDP to the opposition. To that extent, they don’t pose in the eyes of the public any better alternative than what the PDP presented in the elections. Because the candidates did not with very superior commitment to build society, apart from the fact that they don’t connect with the people, they also use the opportunity to contest basically to enrich themselves.

    When they get what they want, they don’t provide leadership to the party to be able to defeat the PDP that is why, if you talk to our members, other members that are not the PDP, the citizens generally, they will tell you that one of the major problems is that the candidates themselves, even when they have lost the election they don’t fight back to reclaim they mandate. Typical example was in 2003, Suleiman Hunkuyi was adjudged to have won the election. He went to tribunal, but before the judgment of the tribunal, there was a contract settlement to the PDP government of Makarfi and withdrew the case from the tribunal. These are typical examples. The other problems are also because we have not built the opposition parties. They don’t do what is needful to even be able to protect the votes that they would have won. A good case is a situation where you take people to polling unit that are illiterate. They cannot read and write. They don’t know the electoral laws. They are not trained. They don’t even know what to do in the polling units. I think these are the major problems, so we must learn from those mistakes and seek to depart from them and start doing things right in such a way that we can truly defeat PDP. When I say defeat PDP I don’t mean we just start talking of constructing roads, giving contracts, big time contracts without giving priorities to the people in terms of human welfare, in terms of basic facilities of life. We were at that primary stage unfortunately, not just in the state in Nigeria generally.  We are talking of basics of livelihood which would include the issues of health, education, water.

    We are at that real primary stage. Today, almost all the foods we consume are imported, although we are supposed to be an agrarian nation. This is quite unfortunate and we have to really work hard if we are going to pose an alternative to PDP to come up with programs and campaign promises that clearly seek to depart from the old ways. I always say that, for once in Kaduna State, in particular, whatever good your program is, if you are not able to address the question of unity of the people, and you will not be able to mobilize citizens to work in a harmonious way to be able to deliver the kind of result that should move our society forward, and place it on that competitive level with others with further reference to other countries of the world. These are my honest views and that is what drives my engagement with politics. I believe if we work hard we will mobilise our people and get things done in a very proper way.

    What are the challenges confronting the APC in your state?

    Basically, it has to do with the old ways I am talking about. We have some of us who see the APC as an opportunity to simply just win election and on the basis of that they came into the party and all they are doing is to do things exactly the way the PDP is doing it. They want to take over the structures of the party, refuse to allow members of the party to determine their own leaders where members are given opportunity to determine their own leaders when they see that those leaders are not going to do their bidding and to that extent therefore ensure that they emerge victorious in primaries and become candidates. They start working against the leaders the people want. For us  in Kaduna up till today we are still grappling with all manner of crisis, simply because congresses have taken place and those ‘big shots’ who think they must dictate who become leaders don’t want those that are elected and are working assiduously to get those leaders removed.

  • TCN: snake caused power disruption

    TCN: snake caused power disruption

    The Transmission Company of Nigeria (TCN) has said power supply disruption experienced in parts of Benin City and environs was because a two meter snake tripped off transformer T23 at the Benin switchyard.

    It said this put Nekpennekpen, Ikpoba dam and Akoko feeders out of power supply.

    A statement by TCN Public Affairs Manager, Rufus Imafidon, said power supply has been restored to the affected areas. He apologised for the inconveniences.

  • ‘Without steady power, manufacturing is gone’

    ‘Without steady power, manufacturing is gone’

    The real sector has many challenges- dearth of infrastructure, multiple taxation, and stiff regulation, among others. Added to these is the power challenge, which has rendered the sector prostate, according to the Managing Director/Chief Executive Officer (CEO), Honeywell Flour Mills Plc, Lanre Jaiyeola.  In this interview with COLLINS NWEZE, he says manufacturers will do better if power is stable.

    What is your position on the Federal Government’s cassava initiative and how is Honeywell complying with the directive?

    The cassava initiative is a welcome development and we at Honeywell Flour Mills will constantly support government’s policies that will help grow the economy. In demonstration of this, we have invested almost N1billion in modifying our plants to add high quality cassava flour to the composite flour that we produce today.

    More than ever before, the Federal Government has created a stronger bonding between players in the flour milling industry and the Ministry of Agriculture. We are working together in ensuring that the policy is properly articulated when it comes into effect and that it can work in the overall interest of Nigeria and Nigerians.

    We are presently working in a committee set up by the Ministry of Agriculture to look at the details of the policy and in a couple of weeks, this will be made public.

    What are the implications of high interest rate on manufacturers’ operations?

    The interest rate in Nigeria is among the highest in the world. Unlike Europe and America where interest rates hover between one and two per cent, we operate an interest regime of over 15 per cent. After the recent rebasing, the manufacturing sector accounted for only seven per cent of the Gross Domestic Product (GDP).

    The implication is that government needs to focus more on the real sector because that is the heart of the economy; that is where we can generate foreign exchange, bring about food security and generate employment for the people. We are very hopeful that the Federal Government can do more to help the Central Bank of Nigeria (CBN) in its efforts to bring down the interest rate.

    How can the tax system be improved?

    Taxation in Nigeria has never been better managed as it is now; we are now in a situation whereby the contribution of taxation or the relative relationship of taxation to the GDP is much higher than what used to be obtained but even at that, when you compare the ratio of taxation to GDP, it falls short. I think the last tax to GDP ratio was 12 per cent, however before the rebasing, it was 20 per cent. Compared to a tax rate of 30 per cent, which means that tax management system needs to be strengthened. However, in terms of administration, I think the tax authorities are doing well.

    How has the current tax structure impacted on your operations?

    As good corporate citizens, we are subject to paying tax as established by regulatory authorities. So, its normal for us that there must be taxation in business; the  least we can do is to comply and pay whatever tax that is established for us.

    Inadequate power supply poses great challenge to manufacturers. How has your company been coping?

    Energy in manufacturing is very critical. Unfortunately, we have not derived much benefit from the national grid. Since we started this business about 19 years ago, we have always run on self-generated power supply. Today, we have a combined 30 megawatts (Mw) of self generated power supply comprising a 15 Mw gas power plant and a back up of another 15Mw  diesel power plant.

    So, you can appreciate the cost implication of running a manufacturing business in our environment. Because of the nature of the processes we run in our business, it is almost impossible for us to depend on power from the national grid.  It is a heavy cost, which is avoidable and we are looking forward to that day when manufacturers will have to depend on power from the national grid to run their business.

    What is your assessment of the  capital market so far?

    It is very unfortunate that we experienced a collapse in the Nigerian capital market about seven years ago, although, it was not only a Nigerian thing but a global phenomenon. That said, the efforts of Nigerian Stock Exchange (NSE) at revitalising the market is highly commendable in the sense that investors’ confidence is gradually being boosted again; the apathy to investing in new issues is gradually going off. Soon, investors’ interest will be fully activated and the capital market will boom again.

    We believe that our share pricing will be better than it is at present. The problem is that most Nigerians want to invest today and get instant returns and when that is not coming, they tend to sell off and create panic in the market. Honeywell is committed to building the wealth of shareholders not only today but for the future. In years to come, all the efforts we are putting in place today will achieve tangible results for our shareholders. So, for an investor who has interest in long term returns on his investment, we believe very strongly that Honeywell Flour Mills is where to focus on

    What is the way out of the rising cases of unclaimed dividends?

    This is a worrisome trend in the capital market if you look at the reports of many companies the rate at which the list of unclaimed dividends grows is sometimes alarming.

    I think the regulatory authorities need to enforce a mandatory awareness campaign by publicly quoted companies on dividend claims, so that shareholders and investors can benefit from their investments.

    We have also observed that information flow from investors to the companies is sometimes faulty.  Therefore, it is pertinent for companies to ensure that from time to time, shareholders addresses are revalidated.

    Though the trend now is e-dividend, as much as possible companies should encourage payment of dividends into shareholders account.  I believe if all of these are put in place the level of unclaimed dividends will drop.

    How has the unclaimed dividends challenge impacted on your operations?

    At Honeywell Flour Mills, we strive to ensure that our shareholders are informed periodically on unclaimed dividends; we make announcements at Annual General Meetings (AGMs). This year, we are going to make a publication listing out names of such shareholders who have their dividends unclaimed. This is part of our contribution towards eradicating the menace of unclaimed dividends.

    Last year, your firm unveiled a N10 billion investment in flour mills. How has that impacted on your output?

    You are right, in 2013, we increased production capacity by adding 1,000 metric tons flour mill, in two tranches of 500 metric tons each. That expansion greatly impacted positively on our brands. Before now, we had attained our peak production capacity for Honeywell Semolina but with that expansion, we were able to churn out more for our consumers. In addition, we were also able to produce more Honeywell Superfine Flour and Honeywell Wheat Meal. The implication of all these is that we were able to satisfy the demand of our consumers and will also be able to grow the business more in years to come.

    What are your expansion plans?

    Yes, in fact that is the medium to long term plan of the business, to have a one stop-shop. We are expanding by investing in a 63 hectare land in Shagamu, Ogun State, the implication of that is that we will be in a position to expand across all the products that we offer the market. We are increasing Pasta and Flour Mill production capacity while also investing in a Feed Mill.

    How will you assess the performance of your company in the last one year?

    Given the business environment in which we operated in the past 12 months which ended March 2014, I want to say that it has been very tough. We were confronted with a lot of challenges which are related to heightened competition among players in the industry.

    There is intense competition in the manufacturing landscape, especially in the sub-sector where we operate, but we are focused, purposeful and with a committed work force, we are equal to the task.

    Our number one competitive tool is the quality of our products, which we do don’t compromise on, we shall continue to remain number one in terms product quality.

    It is also important to note that the key drivers of our superlative performance are our people, workers, board and management. We are driven by the vision of the company, which is: To be the Most Admired African Company in Terms of Our People, Practices and Successes. We are driven by our core values of Responsibility, Integrity, Courage, Excellence and Respect for people.

    What is the next big idea expected in Honeywell?

    The next big idea from Honeywell is that we are presently embarking in a major expansion programme in Sagamu, Ogun State. We are investing in a 63 hectare-land that will enable us expand and increase capacity across all our existing products. At this location, we plan to literally blow up the business.

    We are increasing our capacity for pasta, flour and investing in a feed mill. We plan to expand our flour milling capacity by another 500 metric tonnes per day, expand pasta by about 150 percent of what is currently in place now.

    We are investing in feed mill operation in an effort geared towards focusing on locally available raw materials. For us, it is another way of building value for our shareholders. Most of these projects will be in place in another 18 months and commercial production will start which will enable us not only to increase our top line but also increase our bottom line and offer better returns to our shareholders.

    How will you assess your brand’s performance in the market?

    We play in five categories; our flagship brand is Honeywell Superfine Flour, it is number  two in the market with about 20 to  22 per cent of the market share; Honeywell Semolina – 40 per cent;  Honeywell Wheat Meal – 60 per cent; Honeywell Noodles – 12 per cent  and Honeywell Pasta; 14 per cent. Sometimes our market share is just a reflection of our limited capacity and not a true reflection of the consumers’ preference for our brands. We have exhausted the current capacity for some of our products and as we build more capacity, we will continue to increase our market share.

    Your adverts usually run during football matches. Why have you chosen such time?

    Yes they do. If you look at the profile of our core consumers, they are children, youths and young adults and football is one unifying factor in Nigeria, we believe that football is one platform that can offer the level of awareness that we want to associate our brands with. So, it’s an opportunity for us to connect with all our core consumers not only children, but adults and even the very old ones that enjoy watching football.

     

  • Jani: Power should shift to Kwara South

    Jani: Power should shift to Kwara South

    Prominent businessman and former National President of Alumni Association of the National Institute Alhaji Jani Ibrahim is a Peoples Democratic Party (PDP) governorship aspirant in Kwara State.  He spoke with ADEKUNLE JIMOH in Ilorin, the state capital, on his ambition, zoning and chances of the PDP at the polls. 

    Why do you want to become  the governor of Kwara State?

    I see a state with abundant potentials that have not been fully utilised. People say the state is poor, but, I see untapped potential. In Lubcon we have been able to accomplish extra-ordinary things with ordinary people; our products have accomplished international certification without a single expatriate staff. I believe that the same feat can be accomplished in Kwara State. Taking the state from “good” to “great”. I look at the hoards of unemployed youths, and the potentials lying waste; I look at poor rural dwellers surrounded by uncultivated land as far as the eyes can see, and I see untapped potentials for turning their lives and the economy of the state around. I have worked hard to build a successful business and I intend to deploy the wealth of experience that I have garnered in business to help shape the lives and fortunes of our youths and our children. I have been trying to do that in my business through grants, scholarships, youth empowerment initiatives and direct support to young entrepreneurs as well as employment opportunities but that is not enough. I know I can do more because you can never be comfortable in the midst of poverty as it is today in Kwara. So, to improve the living conditions of our people is enough motivation for me.

    What is the chance of President Goodluck Jonathan in next year’s election?

    The country is experiencing a seven per cent growth rate, which is one of the highest in the world. Foreign investors, after careful assessment of the economic prospects of the country, are coming into the country despite the negative image that some are wont to present of the country. The Transformation Agenda and other programmes such as the power sector reforms are beginning to bear fruit, despite all the troubling security challenges that the country is faced with. Nigerians just need to be a little bit patient to see the full results, as the benefits of these initiatives do not become apparent overnight. The recent rebasing of our GDP, the first ever, is a commendable exercise that has helped to shed  light on the true structure of the economy and contribution of various sectors to the GDP. This is an invaluable tool in correct policy formulation. Yes, there are challenges facing the nation; but the response of everyone of us should be joining hands and working together to take on the challenges; every nation that is great today, passed through some rough patches in its history. We cannot afford to let Nigeria fail; there is no place in the world where 170 million people can run to – failure is not an option. The President, despite the security and other challenges facing the country, has continued to forge ahead; and we should give him our unwavering support and back him with our prayers; “you don’t change a coach in the middle of a match”.

    What is your reaction to the agitation for power shift to Kwara South, where you comes from?

    My party will conduct a delegate election to decide who is the best person for the job. Yes, you are right that our people from the South are insisting that equity demands that the zone be allowed another four years in power. I am not aware of any binding agreement to that effect in our party.; But, don’t forget that we have eminently qualified candidates from all the zones. We are consulting with our brothers and sisters from both the central and the North, if our zone wants to keep it for another fouryears, they have to work hard and convince the other zones. What remains important is for the best candidate that can deliver the state to emerge. The problems of the state -poverty, unemployment, underdevelopment-cannot be zoned. They are all over.

    What is your vision for Kwara State?

     I was raised from a very humble beginnings and I would like to see a Kwara State in which people that can aspire and attain to great height no matter their background; a state where every child rises to the fullest of their potentials. A state where kwarans can participate in the political process without fear of retribution and where our votes will be counted.

    Without going into too much details, our programmes revolve round the acronym of my name. JANI; J – job creation, A – agriculture development, N – natural resources exploitation and I – infrastructure development.

    On the job front, in addition to the various programmes we will be putting in place, we will work at making Kwara State the choice destination for foreign businesses coming into the country. As you aware, Africa is the next big thing in global business, and Nigeria is the prime location for the foreign businesses that are coming into the continent. SMEs will be a major tool for job creation.

    How are you going to achieve these programmes?

    With the abundant arable land, excellent land and air connection and the hard working people that the state is blessed with, we will be leveraging on the programmes and incentives that the Federal Government has put into place under its Agriculture Transformation Agenda, to position the state as the foremost agriculture and agro business region in the country. With well articulated policy in place, rural farmers in the state could easily meet 10 per cent of the country’s annual rice needs and earning themselves N30 billion annually in the process; mind you, that is just slightly lower than what the state receives annually from the Federal Allocation. Such initiatives help address the inclusive growth concerns that is bothering development professional around the globe.

    We will also enter into partnership with local and foreign firms to exploit and very importantly, processing the mineral resources that exist in the state. Thailand and India though not big time mineral producing countries, have very vibrant precious stone cutting and polishing industries. We intend to make Kwara State the centre for a similar operation, catering for the needs of the precious stones mined in the mineral rich belt that extends from Nasarawa/Plateau state, down to Kogi/Kwara State.

    On the infrastructure front, we will be opening up every part of the state by construction of good roads, upgrading of schools and hospitals, extension of grid and off grid electricity and the provision of water and sanitation.

    I’m always sad when I hear that a child cannot read, because the doors of opportunity had been closed on that child.

    Our youths know that government alone cannot solve all their problems. But they believe that by reducing the cost of governance, practising tight fiscal management and a radical change in Government’s priorities, every Kwaran will have a chance to a decent good life. We will embrace transparency, and will be reaching out to Kwarans at home and abroad, as well as bilateral and multilateral development agencies to join hands with us in birthing the Kwara of our dream.

  • Banks move to safeguard power sector loans

    Banks move to safeguard power sector loans

    Money Depoait Banks have committed over N320 billion as loans to DISCOs and GENCOs, while the Federal Government realised N400 billion from the sale of the assets of the defunct Power Holding Company of Nigeria (PHCN). But the lenders are worried over persistent gas shortage, which has put operators’ cash-flow in jeopardy. To address the issue, the Bankers’ Committee has unveiled plans to pay the N25 billion PHCN debts. COLLINS NWEZE reports that this may bring reprieve to the banks.

    The plans by the Bankers’ Committee to pay the N25 billion PHCN legacy debt has opened a new vista of hope in the funding of the power sector. The lenders decided last month at their meeting in Lagos, that leaving the gas supplying firms bogged down with the debt, will make nonsense of the huge funds already committed to the power projects.

    Hence, the Bankers Committee opted to pay the debt until such a time that the power companies will attain maturity and make repayments on agreed terms.

    The measure will boost gas supply and enable the lenders wriggle out of the rising non-performing loans granted power firms.

    Findings showed that many of the banks that raised the capital to fund the power projects are counting their losses because of poor cash flow due to gas shortage. The lenders, it was learnt, are being more cautious in lending to the power sector until the gas challenge is resolved. A quick resolution is expected to revive the attractiveness of the sector to the lenders and create room for fresh loans.

    The Managing Director, Ecobank Nigeria, Jibril Aku, said the committee resolved to  service the debt, admitting that doing so would enhance gas supply and boost power output in the country. Aku said the banks will recover the fund from the Multi-Year Tariff Order (MYTO) deductions.

    He said the Bankers’ Committee is willing to support the initiative with government, where a Special Purpose Vehicle (SPV) will be set up to provide loans to clear the debt, and overtime, the loan would be recovered through MYTO tariff deduction.

    The Ecobank chief said the essence of the power transformation programme is to achieve efficiency and improve power supply, which was constrained by gas shortage.

    He said: “Obviously, gas coming into the power stations would affect the revenue. Many of the operators have not raised their production capacity because of shortage of gas.”

    According to him, the gas companies have always been agitating that this debt be paid, otherwise, they will not produce and will begin to accumulate new debts.

    He said the committee believes that most of the problems associated with gas-to-power would be resolved and Nigeria will begin to see a generating company that is inspired to increase power generation.

    In line with its Vision 2020, which seeks  to place the country among the 20 leading economies in the world, the government has set a rather ambitious target of 40,000 Megawatts (Mw) of electricity generation.

    With a population surpassing over 170 million, its current maximum electricity generation capacity is approximately 4,500 Mw. This is inadequate to meet demand estimated at 10,000Mw.

    The World Bank and other local and international lenders have equally showed renewed commitment to power sector funding in Nigeria.

    President/CEO, African Finance Corporation (AFC),Andrew Alli, said sub-Saharan Africa would need more than $300 billion in investment to achieve universal access to electricity by 2030. The governments of Nigeria, Ethiopia, Ghana, Kenya, Liberia and Tanzania are in the “Power Africa Countries” initiative where the investments are expected.

    In a statement on the lender’s website, the AFC chief said the bank will provide additional investments in energy projects annually, far in excess of its commitment to the Power Africa initiative.

    “AFC aims to provide Power Africa Countries, not only access to finance, but deal structuring and sector technical expertise,  advisory services, project development, capacity funding to bridge the power infrastructure investment, seen as acritical pillars for economic growth across Africa,” the statement said.

    The AFC, recently participated in the US Presidential Power Africa Initiative meant to accelerate investment in Africa’s power sector over the next five years.

    The key goal of the Power Africa Initiative is to increase access to clean, geothermal, hydro, wind and solar energy. It will help African countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions, by providing the capacity and resources to generate an additional 10,000Mw of power.

    The Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iwaela said the World Bank Group has pledged to provide $1.4 billion to Nigeria in support of efforts aimed at improving power infrastructure.

    The minister said the global lender is planning to set up an infrastructure facility and that Nigeria would be among the first set of countries to benefit from it, given the nation’s large size and the scope of its infrastructure needs.

    “They (the World Bank) want to concentrate on power, and are already actively working with several private sector companies that want to invest in Nigeria. They are promising to give Nigeria about $700 million under the International Bank for Reconstruction and Development (IBRD) guarantees for the power sector, as well as a willingness to invest another $700 million to support transmission,” she said.

    She explained that the power infrastructure support finance was derived from the initiative of the World Bank Group and its affiliate, the International Finance Corporation (IFC) which listed Nigeria as one of the focused countries in sub-Saharan Africa to benefit from the funding.

    She said government was prepared to execute and implement the negotiated projects, allaying fears that they might be abandoned midway and become white elephant projects. The World Bank Group hardly participates in any white elephant project, she said, adding that it has its teams that “normally come every six months to supervise what is going on, and when they see (that) the project is not performing well, they stop disbursing, cancel it and take the money elsewhere”.

    Also, the Board of Directors of the African Development Bank Group (AfDB) has approved an African Development Fund (ADF) Partial Risk Guarantee (PRG) programme of $184.2 million to support Nigeria’s power sector privatisation. It also provided an ADF loan of $3.1 million, for capacity building for the country.

    The Director, AfDB’s Energy, Environment and Climate Change Department, Alex Rugamba, said the PRG programme in the country would increase its electricity generation by catalysing private sector investment and commercial financing in the power sector through the provision of PRGs.

    He said: “The PRGs will mitigate the risk of the Nigeria Bulk Electricity Trading Plc (NBET), a Federal Government of Nigeria entity established to purchase electricity from independent power producers (IPPs), not fulfilling its contractual obligations under its power purchase agreements with eligible IPPs. This in turn will increase the comfort level of private sector financiers and commercial lenders investing in the Nigerian power sector privatisation programme.”

    Rugamba said an effective and steady power supply is critical to the sustainability of the country’s development. He said the ‘Board’s decision today will allow the AfDB to support the Nigerian government’s efforts to reform the power sector and position the country for sustainable and inclusive growth.’

    Again, there was another  $350 million infrastructure financing agreement for Africa between global infrastructure giant, General Electric (GE) and Standard Bank. The bank said the partnership seeks to provide affordable access to power infrastructure to augment traditional large scale grid capacity development. The bank said the partnership will target Nigeria, Angola, Tanzania, South Africa and Ghana. Others are Kenya, Mozambique, Uganda, Ethiopia and South Sudan. Financing activity will center on project finance, equipment finance, trade finance and advisory.

    Speaking during a ceremony to announce the partnership, President and CEO of GE Africa Jay Ireland said the partnership comes at the right time when there are concerted efforts to boost access to energy across the continent. He said partnerships of this nature would certainly support efforts by respective governments in finding captive power solutions to meet the growing demand for alternative fuels.

    Mr Ireland said the partnership is in line with the country-to-company agreements, which GE has signed with a number of African governments aimed at generating incremental power and increasing access.

    Chief Executive, Stanbic IBTC Holdings (Standard Bank trades in Nigeria as Stanbic IBTC Holdings), Mrs Sola David-Borha, said the bank was committed to partnerships of this nature that help energise the sector.

    She said the power challenges identified in the focus countries for this partnership were opportunities for growth through sustainable investment. According to her,   through the partnership, financing will also be available for off-grid solutions that rely on cleaner fuels such as biomass and biogas across sub-Saharan Africa.

    Another international lender, Ecobank Nigeria said it will invest $25 billion in five years to help solve Nigeria’s power sector crisis.

    Its Country Head, Power & Energy, Olufunke Jones said the investment is in line with its policy to support the growth and development of the power sector in the country.

    She said it has played a major role on the buy-side of the power sector privatisation exercise by providing financial advisory services, lead arranger role,  acquisition financing and guarantees to Distribution Companies (DISCOs) , Generating Companies (GENCOs) and National Integrated Power Plants (NIPP).

    She said:”Nigeria has one of the largest gaps between demand and supply for electricity. To bridge this gap, the country requires a combination of favorable government policies, private sector participation and Foreign Direct Investment (FDI) as well as transparency and persistent monitoring that will guarantee an improved business environment.”

    According to her, the current power sector reforms have created opportunities for Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) funding which is a consequence of the handover to the new owners. “There is the urgent need to rehabilitate the distribution networks in order to make them  robust and flexible enough to accommodate the nation’s demand for power,” she said.

    Also commenting, its Local Account Manager, Corporate Banking Group, Mrs. Funmilola Ogunmekan said the power sector is faced with the challenges of upgrading most of its obsolete equipment and processes under a traditional technology framework. This, among others, is the immediate challenge before the potential of the industry is fully manifested.

    Mrs. Ogunmekan reiterated that this year, the lender will leverage its position as a bank with the third largest branch network to provide effective utility collections and cash management services while providing the required additional CAPEX/OPEX funding requirement for at least five of the DISCOs across the country.

    Also, the United Bank for Africa (UBA) said it has so far extended $700 million (about N113 billion), in funding to different investors towards the acquisition of power assets in the privatised power sector. Its Group Managing Director and Chief Executive Officer, Phillips Oduoza said: “It is a growth sector we are playing very big.”

    Zenith Bank  said it expects to increase loans to the privatised power companies. The lender said loans to the power sector may rise to 10 per cent of its loan book by year-end.

    The value of the lender’s loans to power companies was about N40 billion in the third quarter after the handovers.

    It gave loans to power firms such as Eko Electricity Distribution Company and Ikeja Electricity Distribution Company both in Lagos State. “As we review the companies and we see viable propositions, yes we will” expand loans to the industry,” the lender affirmed.

     

     

  • Nigeria, others need $300b for universal access to power

    President/CEO, African Finance Corporation (AFC),Andrew Alli, has said sub-Saharan Africa would need more than $300 billion in investment to achieve universal access to electricity by 2030.

    The governments of Nigeria, Ethiopia, Ghana, Kenya, Liberia and Tanzania are named the “Power Africa Countries” where the investments are expected.

    In a statement obtained from the lender’s website, the AFC chief said the bank will provide additional investments in energy projects annually, far in excess of its commitment to the Power Africa initiative.

    “AFC aims to provide Power Africa Countries not only access to financial, deal structuring and sector technical expertise, but also advisory services, project development capacity, funding to bridge the power infrastructure investment and access deficit, seen as a critical pillar for economic growth across Africa.”

    The AFC, recently participated in the US Presidential Power Africa Initiative meant to accelerate investment in Africa’s power sector over the next five years.

    The key goal of the Power Africa Initiative is to increase access to clean, geothermal, hydro, wind and solar energy. It will help African countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions, by providing the capacity and resources to generate an additional 10,000MW of power.

    The President Obama Power Africa Initiative, coordinated by USAID, is a multi-stakeholder partnership between the United States Government, the US Agency for International Development (USAID); Overseas Private Investment Corporation (OPIC); the US. Export-Import Bank (Ex-Im); The Millennium Challenge Corporation (MCC); US Trade and Development Agency (USTDA); US – Africa Clean Energy Finance Initiative (US-ACEF); The US African Development Foundation (USADF), and the Governments of Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania (“Power Africa Countries”) and the private sector.

    AFC, a multilateral finance institution, was established in 2007 with an initial capital base of $1.0 billion, to be a catalyst for private sector infrastructure investment across Africa. It was established to help fill a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs, and is increasingly being seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

    The lender said it would invest over $250 million in the power sectors of Ghana, Kenya and Nigeria, whilst catalysing a further $1 billion in additional investments in sub-Saharan Africa energy projects.

    The AFC USAID partnership under the Presidential Power Africa Initiative will mobilise the resources, tools and combined commitment of the US Government, the six partner governments, and the private sector in a coordinated regional effort to assist governments and investors by accelerating the financial close of power transactions, stimulate new investment, and help build the regulatory, economic and policy foundation to meet Africa’s increasing demand for electricity.