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  • Infrastructure: Govt should wear public sector, private entrepreneur caps, says Ovia

    Infrastructure: Govt should wear public sector, private entrepreneur caps, says Ovia

    The Nigerian Bar Association’s 2017 Annual General Conference, provided Jim Ovia, Chairman, Zenith Bank and Keynote Speaker at the event, an avid opportunity to address what arguably touched on the very kernel of what the nation needs to focus on to develop the economy – Infrastructure. If implemented, it may well be the elixir required to turn the nation’s fortune around, reports, Group Business Editor, SIMEON EBULU.

    Jim Ovia’s keynote address at the just concluded NBA Annual General Conference in Lagos, no doubt serves, not only as an agenda setting, but a schematic order of what should be government’s priority in its quest to improve, or better still, raise Nigerians’ standard of living. Ovia, the Chairman of Zenith Bank, in that presentation, brought to the fore the place of infrastructure, and how its provision can literarily transform the economy of a nation, given its overwhelming impact and multi-plier effect on other segments of the economy.

    For a start, following from Ovia’s presentation, he said “every one per cent of government funds spent on infrastructure leads to an equivalent one per cent increase in  Gross Domestic Product (GDP), underscoring the correlation between funding infrastructure and economic development of nations.’’ If this holds true for Nigeria, as it should, then this nation can as well determine from the onset, by how much it wants to grow her economy, by simply varying its quantum of infrastructural investment.

    And it is common knowledge how much infrastructural deficit Nigeria suffers. If it is roads, we have several thousand kilometres, across the six-geopolitical zones to attend to. If it is health infrastructure, there are countless number of hospitals, primary health centres  and several other health related facilities  calling for attention. Is it in power, or water, rail transportation, just name it, they are everywhere. It’s regretable that the nation is struggling with recession when there’s an exit window in infrastructure development.

     

    Attendant Pain in infrastructure deficit

    In drawing attention to this critical element in nations’ growth and development, Nigeria, not being an exception, Jim Ovia pointed out that poor infrastructure currently costs Nigeria N2.03trillion, or two per cent of GDP yearly, adding that insufficient infrastructure also represents a major cause of loss of quality of life, illness and death.” Ovia didn’t mince words  in his advocacy for the provision of adequate infrastructure, saying the lack of it impedes a nation’s economic growth and international competitiveness. He said infrastructure should be ranked above mere provision of services, “to a moral and economic imperative,” stating that in developing economies, where pointedly Nigeria belongs, “lack of infrastructure is a far more serious barrier to trade than tariffs.

    Given the scope and magnitude of the infrastructure deficit, the nation’s annual budgets will not be adequate to address the issue, Ovia stated. He posited that the Capital allocation in the 2017 Budget, (even when fully utilised), can address only 52 per cent of the annual requirement. He however listed  other sources of funding available to include, Development Finance Institutions (DFIs), Multilateral and Bilateral Organisations, such as the World Bank, Department For International Development (DFID), United States Agency For International Development (USAID), China and the United States. He said the Nigerian integrated infrastructure master plan (NIIMP) provides a roadmap to raise the country’s stock of infrastructure from the current 20-25 per cent of the GDP to an ideal   benchmark of 70 per cent by the year 2043.

     

    Financial Requirement

    Ovia said bridging the infrastructure gap and implementing the Nigeria integrated infrastructure master plan (NIIMP), will require an investment quotient of about $3trillion and will propably take about 26years from now up to 1943, to accomplish. He listed the salient areas to be addressed and the projected financial commitment as follows; Energy: $1trillion, Transport: $775billion, Agriculture, Water and Mining: $400billion, Housing: $350billion, ICT: $325billion, Social Infrastructure: $150billion and Vital Registration and Security: $50billion To achieve this, Ovia pointed out, Nigeria would need to increase investments in infrastructure to seven per cent of GDP annually until 2043

     

    ICT Infrastructure

    On the Information Communication Technology front, Ovia, drawing from the Nigerian Communication Commission data base, said the estimated number of Nigeria’s mobile subscribers was 143,064,490, as at June this year, saying that tele-density remained at 102.19 per cent, based on the 2006  official population census that put the Nigeria’s population figure at 140 million..

    He said: “There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future. The scale of the technology and infrastructure that must be built is unprecedented, and we believe this is the most important problem we can focus on,” pointing out that the successful companies of the next decade will be the ones that use digital tools to reinvent the way they work.

     

    Challenges

    Ovia identified Limited access to funding, poor project preparation and planning, as well as weak procurement processes as being partly responsible for inadequate provision of infrastructure. In addition, he said, reconciling relatively shorter ‘political life cycles’ with often longer ‘infrastructure life cycles, has been an issue, given that successive political leadership will more often than not, tinker with projects inherited from their predecessors, either by delaying their execution, or in most cases abandoning them out rightly.  He also listed inadequate governance frameworks and lack of capacity, such as competence and experience, as some other hurdles militating against the provision of adequate  infrastructure.

     

    Funding Sources

    Reminiscent of government programmes, the Annual budgets, Ovia stated,  remain the main source of government funding. Although silent about the adequacy of the 31 per cent provision for Capital expenditure to total spending in the N7.44trillion 2017 budget, he nevertheless acknowledged that it was the highest in four years. He said Government’s Debt – such as Treasury Bills and Bonds, as well as other Government Controlled Sources, like the Sovereign Wealth Fund, Pension Funds and Public-Private Partnerships (PPPs), are additional sources of capital to fund infrastructure projects.

     

    Potential Sources of Infrastructure Financing

    The Zenith Bank chair also identified Pension funds, currently standing at over N6.5 trillion, Mutual funds of over N260 billion and International Development Association (IDA) grants of close to US$57billion, as potential sources of infrastructure financing.  Additionally, he said the government can leverage on the Insurance sector, Non- interest banking funds like ‘Sukuk’, the Sovereign wealth funds, Public-Private-Partnership (PPP) schemes and Exchange-Traded Fund (ETF) as other funding sources that can be tapped to drive infrastructure provision and funding.

     

    Financing Mechanisms for Infrastructure

    The Organisation for Economic Cooperation and Development (OECD), Ovia said, has listed other available Infrastructure financial instruments to include Bonds. These incorporate Project Bonds, Corporate bonds, Municipal/Sub-Sovereign and Green Bonds. Also listed are Loans-Direct/Co-Investment Lending to Infrastructure Project and Syndicated Project Loans. Inclusive are Hybrid (mixed), Subordinated Bonds, Convertible Bonds, Preferred Stock and Equity, Listed or Unlisted Infrastructure Equity Fund.

     

    Key Infrastructure Risks

    Ovia drew attention to what he tagged Legal Risks, such as agreements, saying that they must be taken into consideration in infrastructure provision transactions. He listed Contract Negotiations and Renegotiations, Enforceability of Contracts and Project Governance, as necessary ends that must be closed.

     

    Operational Risk

    Given his knack for details, the Zenith Bank chief said these underlying operational risks;  Lack of Technical Expertise, Inadequate Project Planning, Construction Delays and Cost Overruns, Default of Counterparty, Political and Regulatory Risks, Changes in Policies or Regulations, the Rule Of Law, Transparency/ Accountability, Sovereign Risk, as well as other exogenous, or Macroeconomic Risk, like inflation, Real Interest Rates and Exchange Rate Fluctuations and Currency Volatility should be given adequate attention.

     

    De-Risking Infrastructure

    To give comfort to those engaging in infrastructure provision and funding, Ovia offered the underlying reliefs, pointing out that there’s need to mobilise what he termed “the ‘Right’ Vehicle For Infrastructure Projects,” including strengthening the Judicial System to deal with Infrastructure Related Matters.

    He called for enabling streamlined, Transparent Processes For Better Project Selection and Planning.  He also stressed the need for Building Capacity through Stronger Technical Partnerships and Commitment to Knowledge Transfer, Developing and Implementing a Robust Long-Term Plan for Infrastructure Development, institutionalising and providing enabling Legal and Regulatory Frameworks.

    He said there’s need for provision of Legislative Clarity, especially as it relates to Public Procurement, Permits, Expropriation, Taxation, Litigation and Tariff Definition, in addition to establishing a creative Innovative Financing Instruments and Arrangements, including Exit options.

    Ovia said for Nigeria to de-risk various infrastructure projects, Government as initiator, must think as public sector on one hand, and have the mindset of a private sector entrepreneur in execution, so as to align with the profit motive of the private sector entrepreneur. Both parties, the public sector agent and private sector entrepreneur, he stressed, must think NIGERIA FIRST.

  • Affordable housing: private initiative to the rescue

    Affordable housing: private initiative to the rescue

    With growing population, a lingering housing deficit and government’s continued inability to provide affordable housing in practical sense, a multinational has seized the initiative to provide technical support, materials, and connect  mortgage providers with prospective house owners, among  others. MUYIWA LUCAS reports that the initiative is part of the firm’s global plan, which will benefit 25 million households, with Nigeria benefitting substantially. 

    It is not a new piece of information that Nigeria’s population is increasing geometrically. But several studies conducted by the United Nations on Nigeria’s population showed that come 2050, there will be 400 million people in Nigeria, is frightening. This projection means that the country would have overtaken the United States (US) in another 32 years from now, as the 3rd most populous country in the world.

    In similar vein, the World Bank projected that Nigeria’s population is growing at 2.8 per cent rate yearly, while her per urban population grows at 4.7 per cent as a result of the rise in rural-urban migration. This growth rate is, however, disproportional with staggered attempts at bridging the housing deficit by both the public and private sector in the country.

    To experts and other stakeholders in the real estate and construction industry, these studies represent a timely warning for the country’s built environment, especially with regards to providing affordable housing in a country where a deficit of 17 million housing exists. This fear may not be unfounded given that population explosion comes with an attendant need for housing. Stakeholders and policy makers have put Nigeria’s financial requirement to tackle the deficit at N59.5 trillion.

    A 2010 report commissioned by EFInA and Finmark Trust, titled: “Overview of Housing Finance Sector in Nigeria”, submitted that 85 per cent of the urban population live in rented accommodation, spending more than 40 per cent of their income on rent. Of these rented houses, 90 per cent are built through self financing by the owner, mainly due to lack of mortgage financing while less than five per cent of these houses have formal title registration.

    The lack of an efficient and effective mortgage financing has remained a huge albatross on the country, irrespective of the various government efforts in this direction. This is why only a tenth of the one million homes built yearly, has helped to tackle the deficit over a period of 10 years. Most of these, findings revealed, are by persons who contend with deficient financing, shoddy workmanship and poor building materials, among others.

    The low income category seem to be the most hit in Nigeria’s housing debacle. For a Nigerian aspiring to build an affordable home with about N3 million, there are enough challenges to induce headaches, which either frustrate the ambition or force the project to be abandoned. These include access to finance, which is the major source of worry; others are delays in project completion, taking between two to five years; lack of access to qualified building professionals without cut-throat charges as professional fee; mortgages focusing on the high end market; inconsistent quality of building materials; bureaucratic building approval process and the high cost of acquiring land and its tenure issues.

    A former Minister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, acknowledged that affordable housing delivery for the low and middle income earners cannot be achieved without the provision of incentives to encourage private sector participation.

    “To build a house in Nigeria is a very expensive task due to the high cost of building materials. Affordable housing cannot, therefore, be achieved without a drastic reduction in the cost of housing construction and other associated costs, which invariably determine the selling price. Consequently, for affordability to thrive, emphasis must shift to reducing the cost of housing construction to promote access to affordable homes to the vulnerable segment of our national population,” Mrs Eyakenyihad said at a pre-summit meeting on the Nigeria housing and construction summit/expo, in 2014.

    She then called on the organised private sector, manufacturing outfits, finance houses and multilateral agencies to support the drive for affordable housing delivery.

    Eyakenyi’s call has not fallen on deaf ears, as the private sector has taken up the challenge of housing in the country. This has again made for a silver lining to appear on the horizon for Nigerians desirous of owning their affordable houses.

    For instance, Lafarge Africa has put in place an initiative, which it calls “Easy Home”, an innovative affordable housing initiative, which is already providing innovative solutions for the construction, renovation and extension of houses. The scheme is tailored to the local challenges and needs of individual home builders, including Nigerians, who already own their land and want to build. Through the initiative, LafargeHolcim Group, hopes to impact about 25 million people by 2020 and Nigeria is expected to benefit from a significant chunk of the scheme.

    Lafarge Africa Head of Affordable Housing initiative, Mr. Aurelien Boyer, explained that if the associated challenges to affordable house ownership are addressed, Nigerians could build more houses faster. This, he said, was what the firm set out to do with the Easy Home scheme. “The whole idea is to provide individuals with free technical expertise and demystify the idea of owning a home. Lafarge Africa provides free cost estimate i.e. Bill of Quantity and designs for prospective builders. We also connect them with sources of finance as well as artisans that will build at the least possible cost without compromising quality,” Boyer explained.

    The Easy Home initiative, which began three years ago, has impacted positively on over 30,000 persons across 14 states of Lagos, Ogun, Oyo, Kwara, Ondo, Benin, Osun, Nasarawa, Niger, Cross River, Abia, Akwa Ibom, Rivers and Abuja. Beneficiaries of the scheme include Business people, civil servants and salary earners, who have used “Easy Home’s” menu of free services to build bungalows, duplexes, self-contained apartments, shops, schools, clinics etc.

    “The demand for housing outstrips supply in the low-income segment where most live in rented houses. Presently, 5,000 households in mainly urban and peri-urban households earning N20,000 to N300,000 monthly have keyed into the Easy Home scheme. We, as Lafarge, estimates that nine million households can afford to build their property incrementally. Through Easy Home, Lafarge Africa is contributing to the reduction of the national housing deficit and helping to accommodate a large chunk of Nigeria’s population,” Boyer explained.

    A consultant architect with a leading construction firm, Mr. Richard Ibilola, has praised the initiative. Easy Home, he said, will have a very significant and positive impact on the spread of good construction practices and the deepen building and construction supervision skills in Nigeria. For him, EasyHome will make it easier for Nigerians to step on the home acquisition ladder because it is designed to take significant initial costs burden away from house owners, and at the same time boosts the development of skills in the ecosystem.

    A financial analyst with vast experience in mortgage matters, Mr. Kayode Oyedele, who explained that given the format of the initiative and having had a first hand experience of the scheme as a financial advisor to some beneficiaries, praised the initiators of the scheme. According to him, it is a delight that the Easy Home scheme is changing the perception of mortgage financing and affordable housing schemes in the country.

    “This should be encouraged. More programmes like this will happen in Nigeria only when there’s a mortgage system, which allows for the repayment of loans to acquire houses spread over 15-25 years. Such will give developers and banks an incentive to develop massive residential projects. Regulators will also find it much easier to monitor and punish builders responsible for defects,”Oyedele said.

    To many of its beneficiaries, Easy Home is a huge relief. A pharmacist, Mrs.Ejiro Foyinbo, extolled the concept. She said the provision of free technical assistance, links to trusted builders, reliable retailers and qualified artisans, which the scheme afforded her, has helped to maximise her budget.

    But this is not Lafarge Africa’sfirst intervention in affordable housing programmes. The firm, in collaboration with the French Development Agency (AFD) and LAPO microfinance, have long invested N1.3 billion to provide affordable housing in the country under its “Ile Irorun” affordable housing initiative, which started in October 2013. It was the firm’s first operation launched in the frame of AFD and Lafarge partnership to improve housing conditions through microfinance in Africa.

    The “Ile Irorun”, was intended to enable low-income families to finance the construction, extension or the renovation of their houses and thereby help them improve their living conditions. In all, an estimated 3,500 Nigerians are expected to have benefitted from the programme by end of this year.

    In 2015, Lafarge Holcim also unveiled a self-contained studio-flat at its Oregun, Ikeja, Lagos office, as a model for affordable housing for the low and middle income earners. The feat served as the bedrock for the firm’s planned delivery of a 500-unit of low cost housing in Gwagwalada, Abuja. The types being provided in this scheme include two and three-bedroom flats and studio types. Its prices range from N1.5million for studio model, while others are between N4million and N6million.

    Stakeholders are convinced that the initiative is capable of bringing succour to the numerous Nigerians, who are daily losing hope of owning houses.

  • Nigerians in ‘private’ prisons abroad

    SIR: There are too many reports of Nigerians in foreign prisons these days.  The last report published with The Guardian of Wednesday, June 28, said that the number of Nigerians in private prisons in Libya is over 2,000.

    What is the meaning of private prisons? Aren’t these detention camps without government control?

    How long shall we continue to hear such sad news of our citizens being kept in prisons or of those who lost their lives in the seas? If the Nigerian governments can create jobs and provide enabling environment for its citizen, I don’t think Nigerians within the age of 20 to 35, who constitute the most productive part of our human resource would be dying just to travel out only to be locked up like animals in a zoo.

     

    • Assurance Ovie,

    Benin City.

  • Cross River’s first private varsity holds matriculation

    The first private university in Cross River State, Arthur Jarvis University, has held   matriculation for its new 100 students in two faculties – Basic and Applied Sciences and Social Management Sciences.

    The institution is located in Akpabuyo Local Government Area of the state.”

    Head of Service of the Federation, Mrs Winifred Oyo-Ita, who declared the university open, praised the proprietor, Mr Arthur-Jarvis Archibong, for establishing the institution, saying that it would improve the economy of the host community and the state.

    According to her, investment in education is the surest way to achieving success and breakthroughs in any society.

    Mrs Oyo-Ita charged the management to inculcate good moral values in the students so that they could graduate and become useful citizens.

    She urged management to ensure that the institution is hinged on strong moral and Christiian values.

    Vice Chancellor of the university, Prof. Julian Osuji, said the university was founded on strong academic principles.

    He said the focus of the university was to groom students to be future ambassadors of the university and the country through moral discipline and academic excellence.

    “As we commence proper academic work of this great institution, I wish to advise the students to be dedicated to their studies with strong moral values.

    “Arthur Jarvis University is a great institution that stands proudly as a citadel of moral discipline and academic excellence,” he said.

    Board of Trustees of the university Chairman, Prof. Bassey Asuquo, said the university took off with 10 departments and 15 programmes.

    Asuquo, a former Vice Chancellor of the University of Calabar, said the institution holds a great future for the academic progress of the state.

    He said the university would complement the government’s efforts in bringing the state out of its educationally disadvantaged status.

    The Obong of Calabar, Edidem Ekpo Abasi-Otu, said people of the state should support the proprietor of the university by investing in their homeland.

  • Why private varsities are stronger

    In 1948, the university education started in Nigeria when the first university was established in Ibadan. The University of Ibadan came to being after Yaba College of Technology (YABATECH) was established as the first tertiary institution.

    In the wake of the birth of Third Republic in 1999, the deregulation of the economy saw the emergence of private universities. The financial crisis facing states of the federation encouraged the establishment of the private universities, which are increasing till date.

    It should be observed that the quest to give more choices to the ever-increasing number of admission seekers necessitated the establishment of private universities. Since then, there have been about 60 approved private universities in the country.

    Just like the public universities, private tertiary institutions in Nigeria are also being ranked and reviewed annually. Presently, on the table of ranking, some private universities like Benson Idahosa University, Babcock University and Covenant University have better standing among universities, both public and private.

    No parent would like to compromise quality for names. Many have augured that private universities are expensive, but the truth is that good life is not expensive but it is the creation that is expensive. These schools give you value for your money; education shouldn’t be so cheap.

    Former president of Harvard University, Derek Bok, famously said: “If you think education is expensive try ignorance.”

    We should also know that the fees of public-owned tuition have increased and are not as cheap as they used to be.

    Most of these private varsities have decided to deploy the use of Information Communication Technology (ICT) to impart knowledge on students, while many public-owned institutions lag behind in this respect. Students, who attend private schools, are easily linked with mentors and research groups as done in many globally-acclaimed schools, but most of our public schools cannot do this.

    Public universities brag with the number of doctorates and professors in their employment, forgetting that most of these highly-rated academics still go on sabbatical in private-owned schools because of sophisticated equipment and infrastructure.

    At academic and social competitions, private varsities are earning more honour and accolades, compared to public-owned schools. At the sixth International Humanitarian Law Moot Court competition recently held at Lagos State University (LASU), a private school, Benson Idahosa University in Benin emerged winner amidst stiff competition from nine public universities.

    In 2011, Benson Idahosa University also emerged second runner- up in the West Africa University games held at the University of Ilorin (UNILORIN) in Kwara State. Again, last week at the 25th NUGA, Benson Idahosa University, came third position with a total of 26 medals, defeating 55 state and federal school.

    At the just concluded maiden edition of Technology and Innovation Expo, Covenant University finished in third position in the tertiary institutions’ category, defeating 64 public-owned tertiary institutions at the event organised by the Federal Ministry of Science and Technology.

    Many parents prefer to enroll their children in private schools because of incessant strike actions, unstable academic calendar, cult activities, low staff-students relationship, insecurity and corruption that have befallen many of these public universities. How can one sing the gospel of public universities when these are the agony faced by students? No doubt, there are a lot of nice angles to government-owned universities, but most are far-fetched.

    In private universities, students have comfortable environment to learn, because they believe that a favorable environment is very vital for assimilation of knowledge. These people tend to boast of more infrastructure and state-of-the-art facilities for learning.

    In public school there is a daily struggle for conducive environment to learn. There you see overcrowded and unventilated classrooms. Students are made to stand for several hours during lectures. How can one learn or think in such unfriendly environment, with so much noise and disorderliness? Not forgetting, that one of the major functions of education is to teach one to think intensively and to think critically.

    Another phenomenon that is enjoyed in private institution is the excellent student-lecturer relationship. In a university setting, there is a great diversity in terms of socio-cultural, political, religious and racial backgrounds among students and lecturers. A healthy relationship between lecturers and students does influence students’ academic, personal and social integration into higher education. In private universities, there is a tight bond between the students and lecturers leading to an increase in academic productivity

  • MMA2 at 10: Lessons for private investors

    The 16th American President, Abraham Lincoln, once said, “It often requires more courage to dare to do right than to fear to do wrong.” This month, Murtala Muhammed Airport Terminal Two (MMA2), Lagos, which is a product of the courage to dare to do right, will be 10 years old.

    This is significant in a way because what started in a modest way in May 2007 has now become a benchmark for measuring how an airport terminal should run. No doubt, the edifice, the first successful Public-Private Partnership (PPP) in the country, has changed the face of the aviation industry in this part of the world. MMA2 has positively affected the psyche of all aviation industry stakeholders with the doggedness, perseverance and the zeal to overcome challenges by its manager. The terminal has disabused the minds of the stakeholders of the usually etched graphics of derelict airport terminals scattered all over the land with dilapidated facilities, often overheated and cloaked in darkness.

    The good thing is that 10 years down the line, MMA2, with its Multi-Storey Car Park (MSCP) and the facilities therein, still glitters in the aviation landscape as if it was built yesterday. Despite all the dream killer challenges, engineered by those who wanted to kill the MMA2 dream from inception, its operator, Bi-Courtney Aviation Services Limited (BASL), has since taken the odds as the tonic needed to “still do it”. According to the words of Elon Musk, “If something is important enough, even if the odds are against you, you should still do it.” That the terminal is still standing today like a solid rock in the midst of an earthquake-pummelled environment is a big plus to its operator, which toils day and night to “still do it”.

    One decade on, the success story of MMA2 is in tandem with the words of the British orator, author and two-time Prime Minister (1940–45) and (1951–55), Winston Churchill, who said, “Success is not final; failure is not fatal: It is the courage to continue that counts.” Therefore, the courage and the resilience to make MMA2 work in the face of stiff opposition from vested interests is what counts to BASL and this is a lesson for private investors. BASL’s attitude is perhaps constantly inspired by the saying of the great inspirational speaker, Will Rogers that, “Even if you are on the right track, you will get run over if you just sit there.”

    Ten aviation ministers have superintended over MMA2 in 10 years. While a few of them respected the concession agreement the ministry signed with BASL, majority of them did everything to strangulate the business: another big lesson for private investors.

    Going down memory lane, Dr. (Mrs.) Kema Chikwe (2001-2003) as Aviation Minister signed the MMA2 concession agreement between BASL and the Federal Government and did everything to ensure that the project got off the ground; Mallam Isa Yuguda (May 2003-June 2005) under whose tenure the structure of MMA2 took shape, was instrumental to the invitation of KPMG, an international consulting firm that recommended a concession period of 36 years; Prof. Babalola Borishade (now late) (July 2005-November 2006), through the Federal Airports Authority of Nigeria (FAAN) offered BASL 36 years as the concession period, which the company accepted; and Femi Fani-Kayode (November 2006-May 2007) was Aviation Minister when MMA2 was inaugurated by former President Olusegun Obasanjo in May 2007.

    Other ministers were: Felix Hyatt (June 2007-October 2008), appointed a Minister of State (Aviation) by the late former President Umar Yar’Adua, who could really not do much because the aviation unions and other interest groups overwhelmed him in a bid to ensure the death of MMA2. And under Hyatt, FAAN began breaching the concession agreement, while some airlines ordered to move their operations to MMA2 from the International Wing refused to do so; Babatunde Omotoba (December 2007-March 2010), who was advised by the then Attorney-General of the Federation, Michael Kaase Andoakaa (SAN), to hand over the General Aviation Terminal (GAT) to Bi-Courtney as part of the Concession Agreement, which Omotoba failed to do; Mrs. Fidelia Akuabata Njeze (April 2010 – May 2011), who was urged by the Airline Operators of Nigeria (AON) to allow regional flight operations take place at MMA2, as part of the Concession Agreement, and who never yielded; Stella Oduah (July 2011-February 2014), who led the greatest assault on the enterprise called MMA2 and the Concession Agreement. Oduah was vehement in her opposition to anything MMA2 and did everything to cripple the terminal and take over its operations, but failed. She was succeeded by the suave Chief Osita Chidoka (July 2014 – May 2015), who on the other hand did everything within his powers to ensure that the provisions of the concession agreement were obeyed to the letter. Chidoka also declared MMA2 the Best Terminal in Nigeria, which unsettled so many vested interests, inaugurated MMA2’s Common User Passenger Processing System (CUPPS) and most importantly, approved the take-off of regional flight operations for the terminal, which agencies in the aviation industry, especially FAAN, did everything to scuttle; and the incumbent, Senator Hadi Sirika (November 2015-to date), who has, so far been unsupportive of the MMA2 Concession Agreement.

    All the ministers have, nonetheless, contributed either positively or negatively to what makes MMA2 stand solid today. But the endurance of the operator for the past one decade is what further makes the terminal tick.

    The ministers’ various contributions and those of FAAN were a reflection of what it takes to do business with the government, even when the administration under which they served had good intentions. Other private investors and prospective ones need to learn a lesson or two from this experience. Besides BASL’s experiences in the hands of these officials, the bitter experiences of politician and businessman, Chief Harry Akande and the Chairman of Virgin Atlantic Group, Sir Richard Branson, among others, who were shoved  aside after investing their billions of naira, come in handy here. They are still licking their wounds till date.

    Indeed, an angry Branson had this to say of his experience in the hands of government officials: “We fought a daily battle against government agents who wanted to make fortune from us, politicians who saw the government’s 49 per cent as a meal (ticket) to seek all kinds of favour, watchdogs (regulatory bodies) that didn’t know what to do and were persistently asking for bribes at any point. Nigerian people are generally nice but the politicians are very insane. That may be an irony because the people make up the politicians.

    “But those politicians are selfish. We did make N3billion for the Federal Government of Nigeria during the joint venture, realising that the government didn’t bring (anything) to the table/partnership except dubious debts by the previous carrier, Nigeria Airways. The joint venture should have been the biggest African carrier by now if the partnership was allowed to grow, but the politicians killed it. Nigeria is a country we shall never consider to doing business again.”

    Despite all this, “MMA2”, according to the chairman of BASL, Dr. Wale Babalakin (SAN) “represents considerable cerebral input into very modest resources.” Some food for thought and lessons, lessons all the way.

     

    • Omolale is Head, Corporate Communications, BASL.
  • In Abeokuta, private troupes stole the show

    In Abeokuta, private troupes stole the show

    This year’s African Drums Festival presented series of cultural razzmatazz, but the private troupes and the combined performances of French-speaking African nations at the occasion made the desired difference, writes Edozie Udeze

    With over 54 dance troupes and 18 states of the Federation in attendance, the 2017 African Drums Festival which held in Abeokuta, Ogun State, has come to demonstrate that culture can be used to establish peace, progress, economic growth and cultural renaissance.  Not only that, with the presence of some countries across the globe, the drums festival proved to be an epitome of the preservation of an age-long tradition, and indeed a means to seek for the togetherness of different nations.  These countries included the United States of America, Haiti, Congo Brazzaville, Ghana, Togo, Burkina Faso and Benin.  Each came with its dance troupes, with drums of different sizes and sounds to render deep-rooted cultural tunes that thrilled the audience to no end.

    From Nigeria, came Kano, Anambra, Imo, Bayelsa, Edo, Benue, Akwa Ibom States.  Other states in attendance included the host state, Ogun, Ondo, Ekiti, Kogi, Kwara, Katsina, Niger, Borno, Lagos and the Federal Capital territory represented by the Bwari Cultural troupe.  There were equally some private troupes.  They were led by the Late Hubert Ogunde’s dance troupe which came all out to dazzle the people with those profound dance styles for which Ogunde was noted.

    It was three days of endless displays of cultural tunes using the drums to awaken the soul of Ogun State.  With local drums of all sizes and makes, it was clear to note that almost all the dance patterns in Africa go with the sounds of drums.  Even though the gong (ogene) was there, the flute (oja) was also visibly felt, with other minor instruments, drums truly predominated.  Their sounds rose and rested in the air, showing how important they have become in the musical ensemble in Africa.

    With the classical decoration of the three-part stage by Z-mirage, it was easier for each group to come into the stage to perform without much obstruction.  The main act was left for the centre-stage, while the minor ones took place on both sides.  This way, it was easier to have smooth transitions from one group to the other.  Performances centred more on the cultural elements that unite the people.  The Ogunde group, for instance, took the people back into the meanings of Aiye and Orisha in the socio-cultural lives of the people.

    Adorned in their traditional white costumes to depict purity and elegance, they held large brooms in their hands.  Their costumes were completed with red beads dangling on their necks.  To them, the brooms were used to sweep away ill-luck and usher in moments of affluence and peace.  The lead singer had a different hairstyle which was decorated with cowry shells – a symbol of wealth.  This marked him out remarkably as he led them into the songs of purity, fertility and love.  Cleanliness and dynamism indeed characterized their outing as the tempo of the drums and the songs rose and fell in symbolic torrents.  They called on the people of the old to bring back a sane society.  People applauded and clapped to welcome this moment of renaissance.

    The groups from Badagry topped it up with electrifying songs done purposely to suit the arena.  The drummers who were mainly in their teen ensured that they transited from one song to the other without a break in the tempo.  In the end, one of them named Toye told The Nation that the songs were composed solely for the drums festival.  “You have to seek to keep the people together where love is the centre-peace”, Toye said.  “Our songs hinge on love, on peace, on freedom.  We need these to make progress”, he said.  This could be seen in their local adire costumes which spoke volumes of their total love for that which in Nigerian.

    The Eni Afe Oniluo group from Abeokuta also displayed very colourful drumming that went back in time.  Their pattern delved more into Apala musical tunes.  They drummed and danced gracefully to the delight of the people.  It was made known that the Apala style came out of this genre of drumming.  In the end, the group applauded those who discovered Apala which origin came from Ibadan, Oyo State.

    The states were not left out in the display of good deep drumming sounds.  The Ekiti State troupe was not only outstanding, they did the kind of dance steps that made the audience to shuffle their legs.  Then Ekiti kete rented the air.  Many people cheered them on to do more; to dance to justify the agility inherent in the troupe.  In fact, their dexterity came to its climax when a masquerade entered the arena. As soon as masquerade entered, all the dancers knelt down to greet the masquerade.  It was a sign of respect.

    Adorned in black and white aso-oke, the masquerade quickly took over the dance pattern.  The strange voice of the ancestral spirit suddenly arrested the interest of the people.  It was the voice of the masquerade as it resonated on the stage, gyrating from one end to the other.  Even though emphasis here was on drum as they speak and appeal to African peoples, the outing was a full-bloom festival of all aspects of African cultural elements.  This was what most states tried to justify in their presentations.  For instance, Anambra State came with Atilogwu specifically to display acrobatic dance style.  The display of Oja with its high potency and fluidity of sounds and evocative tune was to add variety to the festival.  Their type of drums and ekwe showed a different class of musical pattern.  For this, people continuously rooted for Atilogwu as they performed on stage, with deep gyration of people possessed by the spirit of the unknown.  It was awesome indeed.

    From Borno State came the drums used mainly to demonstrate durbar.  The long horn and flute were there.  Together, they produced the sounds that pierced the arena.  The beauty of this was in the fact that everybody moved their feet to the slow, steady tempo of these drums that produced peculiar rhythms.  It showed that Africa without drums is incomplete.  The drum is the platform on which celebrations are held.  The different sounds produced by drums represent very unique symbols in the culture of the people.

    This uniqueness was more pronounced when the combined troupes of Congo, Haiti, Burkina Faso, Togo and Benin came on stage to perform.  Their different drums were not far from what obtains in Nigeria.  The Haitian troupe for instance was happy to be in Nigeria for the first time.  They kissed the soil of Africa for the first time and kept muttering in their creole (corrupted French) language about what they missed about Africa.  They walked bare-footed mostly to feel the red earth of Africa.  As they performed, they sang songs to depict Yemoja.  Even though much more corrupted now, it was part of those songs they used to win independence by chasing away the French from their soil.  Their drums, even though looked a bit synthetic yet had the same musical effects to the ear.

    The Congolese tied their own drums to their waists.  It was to make for an easy display, so said, one of their leaders who prattled on one of the drums to show its efficacy.  Very large drums, they played for only few minutes without singing.  The sounds were solemn, provocative and inviting.  They showed more of years of wars and rancor in the country.  The drums sounded more of a dirge, very sorrowful in a display of the call for peace and togetherness.  Their drums also wore elements of their national colours to show how their leaders fought to liberate them from the clutches of French colonialism.

    The troupe from the Republic of Benin accepted the fact that they were in Abeokuta as part of paying obeisance to the people that defeated them during the Dahomey – Yoruba wars of the 19th century.  Part of their drums had that emblem – the emblem of conquest, of warriors, who feared no one but to defend themselves.  This was in 1840.

    They also have infused into their dances and drumming, just like the Haitians, deep traces of voodoo.  Their pattern of movements, the types of songs they rendered, all had elements of voodoo – a spirit of world ruled by the living-dead.  Those body twists that defy logic, that defy modern technique, indeed ruled their world of musical presentation.  As they did so, they entered into the spirit of the underworld and the music then became more charged and indefinable.

    For the Burkina Faso troupe, Nigeria is home away from home.  They felt that this festival is germane to bridge the gap between our two nations.  “It is not only in football”, Gabriele, one of their dancers said, “We have to be together in cultures too.  Africa can use culture to cement love”, he said in smattering English.  Drums, to him represent the voices of the black people all over the world.  “That is why we are here, to be a part of these voices of music, of love, of peace, of progress; of oneness.  Let drums become that pivot point that we need to celebrate; to forget our colonial boundaries to be one once more,” he said.

  • ‘Why private sector can’t pay minimum wage’

    ‘Why private sector can’t pay minimum wage’

    The Nigeria Employers Consultative Association (NECA) has explained why its members could not pay the proposed national minimum wage.

    Its Director-General, Mr Olusegun Oshinowo, said at a briefing in Lagos that they could not pay because of the  recession which has effected  their members’ businesses.

    He said the association  would canvass this position at the National Minimum Wage Committee meeting.

    He maintained that all stakeholders should join hands with the government to ensure job security and job creation.

    He  said: “There was, indeed, an understanding that the National Minimum Wage would be due for discussion after five years and the demand for pay rise by the Nigeria Labour Congress and Trade Union Congress of Nigeria(TUC) was legitimate.

    He, however, said there was a procedure for the discussion of the National Minimum Wage, which entailed the setting up of a National Minimum Wage Committee comprising representatives of the Federal Government, led by the Office of the Secretary to the Government of the Federation, state governments, usually represented by three  governors, NECA and organised labour as represented by NLC and TUC.

    He emphasised that it was the responsibility of the committee to sort out the issue of review or maintain the status quo, adding that upward review was inappropriate.

    He debunked claims in some quarters that opening discussions on the  minimum wage would  translate into unsustainable wage increase.

    He added: “The beauty of collective bargaining is the opportunity to come to the table with constructive positions and submissions. The principle of reasonableness and superior arguments has always carried the day. Conclusions at the platform would not necessarily be for or against increase. It would be to examine the need for or against and justifications for whatever positions are canvassed.”

  • Govt, private sector embrace fish farming

    Govt, private sector embrace fish farming

    The government and the private sector are encouraging fish farming to provide an alternative to small farmers, DANIEL ESSIET reports

    Bamidele Onibalusi is an Oyo-based blogger. After a making money from the internet, he decided to explore other opportunities like fish farming. He then learnt the business of catfish farming, starting with a few ponds.

    He made a success of the business. Now he is encouraging others to take up fish farming.

    Onibalusi, knowing that farmers in many parts of Oyo depended on agriculture for their livelihood, is assisting them to upgrade their systems of farming with training and new technologies.

    His vision to improve his income  was paramount to his switching over to fish farming. And he was not dissapointed, hence, his appreciation of his mentor who introduced him to  fish  farming. Now, he can pay his way and his staff emoluments with his income. His success has encouraged and motivated others to take up fish farming.

    For him, fish  farming is highly profitable, and the number of new entrants is growing daily. Many  young entrepreneurs have been attracted to farming. In addition to fish farming’s contributions to food security at the family level, many professionals believe small-scale fish farming is an ideal way to empower young people.

    One of them is Prof Martins Antekhai of the Department of Fisheries, Lagos State University (LASU), who said empowering young people through fish farming to become more financially autonomous has proven to be one of the most effective poverty alleviation tools.  An important strategy, according to him,   to attracting  the  value chain  approach of exposing  them to several  business  services, such as inputs, value addition  which  are very  profitable  within  the fish  farming industry.

    The other thing, Antekhai mentioned, is forging links between the young farmers and   financial institutions  and offering mentoring for the most promising enterprises on how to access finance.

    He said Nigeria is geographically poised to be the world leader in the fishery sector and a vast population, especially the young generation, could be deployed in the fishing industries.

    According to him, young  people   can find an income source and maintain healthy life as well from fish farming.This is because  nutrition value of fish and other marine products has been measured and proven to be one of the highest, as compared to any other commonly available food products.

    In fish business, he said one can make 20 per cent  return on investment.

    Modernising the fish business, he believes, is critical to ensuring higher incomes for small-scale farmers, improved food security and a reliable supply  needed for fisheries’ feed supply chains.

    Antekhai said there was a need to bring together the main players, including cooperatives, processors, traders,policy-makers, development organisations and financiers to develop a strategy that can overcome challenges, enabling  fish farmers to have a more reliable supply.

    Recognising the need to increase the country’s domestic fish production to meet growing demand and end reliance on imported fish, the Executive Manager of TGI Group, the holding company of Chi Farms Limited, Dr. Johannes Flosbach, said under the deal, Chi Farms would train 1,000 smallholder fish farmers in Lagos and Ogun states on new farming techniques, access to credit, and marketing skills to help raise incomes.

    He said farmers would have access to quality juvenile catfish from Chi Farms’multiple hatcheries, as well as aquaculture management training and financial tools to provide the knowledge necessary to build successful aquaculture businesses.

    He said his  organisation has povided the opportunity for women and youths for the development of agricultural business, and wealth creation.

    With  training, he  said Chi farms has maximised output in fisheries development, empowerment of women and actualising food security.

    Triton Group  Chairman, Ashvin Samtani, said the group is expanding  its investment to cover a fish feed mill and place emphasis on employment generation, training and capacity building for Nigerians, in addition to exploring the considerable opportunities in marine-culture.

  • Akwa Ibom gets first private varsity

    The National Universities Commission (NUC) has approved the operating licence for Obong University at Obong Nkak in Akwa Ibom State as a private tertiary institution.

    The licence, which was signed by NUC’s Secretary, Mallam Adamu Adamu, was presented to the university’s Vice Chancellor, Prof. Udoudo Ekanem-Essang.

    The vice chancellor, who presented the licence yesterday to the Chairman of the university’s Board of Trustees (BOT), Prof. Moses Akpanudo, said the institution would continue to maintain its primal status as the first private university in Akwa Ibom State.

    He said: “It means we cannot be stopped. Our university has had a lot of teaching problems. At a point, the licence was suspended. Thank God for the goodness of so many members of Akwa Ibom community and outside Akwa Ibom that it was restored. Now, it has been made permanent. It is a very significant milestone in the growth of our university.”

    Prof. Ekanem-Essang said the university would run 10 programmes with over 500 students.

    He said the institution had applied for five additional programmes, adding that by March, NUC would come for our resource assessment of the programmes.

    The vice chancellor, who disagreed with the decision of the Federal Government to fund only public universities, said it was constitutionally illegal for the Federal Government to use the money from taxes or the sale of oil and other natural resources to fund public universities.

    He said: “Right now, there are 69 private universities in Nigeria, even more than Federal universities. In aggregate, most students may be attending private and federal universities. So, those children attending private universities are not benefiting from the natural resources of this country. So, we have to revisit how we fund our tertiary education.

    “Funding should not be based on any ratio. It should be based on student population. Funding should be targeted towards students rather than towards institutions. There are models we can test: the British model, American mode, Australian model and many other nations’ models across the world which are running tertiary institutions.

    “We should study their models and see which one will be most appropriate for Nigeria so that every Nigerian citizen benefits from it. Right now, every Nigerian citizen doesn’t benefit.

    “Nigeria’s tertiary education system is still elitist. We don’t make allowance for poor families, families that have not yet produced a university graduate. How do these people assess the university education?

    “It is because education is one of the best vehicles to move from poverty to the middle class. So, if we don’t make allowance for these people who don’t meet the cut-off points, there is no provision on how they can remedy it except they take the exam next year.

    “We have to develop a programme which allows people to remedy their situation and move into the university. We don’t have a programme for pre-education. Nigeria does not have pre-education programme. Science has shown that the first three years of life is when our brains are most functional. We don’t have pre-education a programme on how to prepare kids for this.”