Tag: restructuring
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Restructuring the presidency and the nation
THERE is every good reason to believe that President Muhammadu Buhari (PMB) means business and is serious about restructuring government agencies for better outcome. The latest evidence is his declaration in far away Washington, DC, the capital of the industrial world last week. To the disappointment of political jobbers but to the pleasure of genuine change enthusiasts, Buhari announced that he will not appoint ministers until he has put in place good structures to prevent the kind of rot that he is trying very hard to clear. Who can quarrel with that?
As President-elect, Buhari had set up the Ahmed Joda Transition Committee to work with former President Jonathan’s team. The Joda Committee received the 18,000 page report of the Anyim Federal Government Committee on May 25th. It worked hard to make sense of the report and make its recommendations which it submitted in an 800-page report to President Buhari shortly after the inauguration of the new administration.
It is significant to note that when he submitted his committee’s report, Joda had urged the nation to be patient with the president as he mulled over the report to determine what was best for his administration and for the country. He noted unambiguously that the transition from one political party to another was not an ordinary one and that the President needed time to digest the report and do the best.
As a deliberative leader, who understood the historical significance of his election and who took his mandate seriously, Buhari decided to take his time to study the report before moving on with any appointments. This is reasonable especially in view of the disclosure by Chairman Joda that due to time constraint, his committee wasn’t able to interview and seek clarifications from former ministers and government operatives on their hand-over notes which were received only four days to the May 29 inauguration.
In the circumstance, Buhari and his team had to carefully sort issues out on their own. In view of that situation, is it reasonable for the president to start with ministerial appointments? It makes perfect sense to see clearly where the nation is, align its present condition with the destination PMB wants to lead it; and on the basis of these appoint individuals who will be round pegs in round holes.
In a media interview that he granted after the submission of his committee’s report, Malam Joda observed that Buhari cannot afford to make the kind of mistakes that previous administrations made. He made particular reference to the military era when security reports on prospective appointees were not considered before appointments were announced only for such appointments to be rescinded shortly after they were announced.
Joda noted further that since Buhari had made up his mind that he was going to have perfect people work with him, every prospective nominee had to be scrutinised well to avoid past mistakes. This explains the need for time and the presidential declaration in Washington, DC. Patience is counseled.
Beside appointments, the other major issue in Joda’s report is the recommendation for the restructuring of the executive branch. From media reports, it appears that the committee had recommended a maximum of 36 ministers to satisfy constitutional requirement and cover the restructured ministries. If the President accepts the recommendation, he will have started on a good and promising note. From the leaks concerning the ministries and agencies recommended for merger, the committee has rendered a good account of its stewardship. The ball is in the court of the president.
By the same token, however, with the courageous restructuring of the executive branch, other extant structures cannot be kept in place to avoid pouring new wine into an old bottle.
First, there is a crying need for the restructuring of the legislative branch and its budget. This has been a sore finger in the body politic and the growing pain can be allowed to linger only at the expense of our national comfort. Some defenders of the indefensible have argued that among other necessities, each NASS member must have at least 5 aides. But they have not provided any reasonable justification for such wastage. Sure some private professionals do need aides to care for the house, cook their meals, and carry their portfolios and handbags. But do they charge these to company accounts?
Second, state governments certainly need restructuring in the face of the obviously unsustainable cost of governance. It is unfortunate that states now depend on federal bail out to pay staff. I am sure that the situation is not totally due to gubernatorial incompetence or profligacy. Most of them inherit huge bureaucracies that put a drag on capital development. The question is whether a few must determine the pace of government investment in infrastructure? Sure every governor needs a rethink of large cabinet for far too many ministries. If PMB takes the lead, states must follow.
Finally, the nation as a constituency has the most need as far as restructuring is concerned. Unfortunately, this is also the space where the most challenge is. Are members of the president’s party on the same page? Is he able to summon the political courage to challenge his party to take the high road?
For far too long, at least since 1966, the federal government has grabbed too many functions, with far little success, and a monumental failure in the matter of satisfying the yearnings of the people, which is the sine qua non of governance. We have been getting the same failing results for almost fifty years and we still keep doing the same thing. That is insanity and we need to come back to our national sense.
In the case of those functions such as citizenship and immigration matters, including the issuance of international passports, which are rightly assigned to the federal government, we err grievously in the over- centralisation of such functions. A passport holder had her name incorrectly written on her passport by Immigration agents. But she was told that the correction cannot be made in Lagos where the mistake occurred. She had to go to Abuja to have the mistake corrected. This makes no sense.
In every aspect of our national life, we embrace our ethnic nationalities. We protect and promote our diverse cultures, and we respect and seek to conserve our various traditions. What is even embarrassing is that ethnics protect their own kin no matter the depth of corrupt practices they are identified with.
To succeed, however, genuine and justifiable ethno-national interests need a governance structure that is truly federal. With such a structure, each ethnic nationality can do the most for itself in terms of promoting its cultural traditions and giving the best education to its residents. This is done effectively only by making states and zones the loci of some of the most important functions of government.
It is true that many states lack the viability needed for success and zonal collaboration becomes essential to generate adequate internal revenue so the dependency on the center is eliminated. Fortunately, it now appears that we have moved away from treating geo-political zones as no-go areas which was where we were during the National Conference. Some had argued then that zones have no place in the constitution and therefore none in governance.
Speaker Dogara has perhaps inadvertently legitimised zones with his recommendation for the sharing of House principal offices among the six zones as a requirement of Federal Character. We should now expect zones to feature more effectively in our discourse on restructuring. This is an unintended consequence of the embarrassing NASS leadership crisis.
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Much ado about restructuring
The proponents of the restructuring of the Nigeria nation are unrelenting. Some youths, with almost uncontrollable emotion, in collaboration with some sleepy-eyed conservatives have continued to remind us of the opportunism that pervades the political space of this country.
The doctrine of restructuring Nigeria started in 1951, mostly in the Western Region. The doctrine was a self-serving political gimmick which unfortunately and unashamedly took notice of the natural resources of the three major components to which politicians divided Nigeria. In the Western Region stretching from Lagos to Asaba, the economy was buoyant, relying mostly on cocoa, kolanut, forest resources and human capital. In like manner, the Eastern block starting from Onitsha to Calabar and Port Harcourt was bountifully endowed with palm produce (palm kernel, palm oil and palm kernel oil). The North, a thoroughly agrarian society grew groundnut, millet, other grains, etc. The North therefore constituted the food basket of the nation. In terms of relativity, the economies of the three regions were buoyant enough as to be able to sustain a reasonable level of standard of living. Together these primary products earned appreciable foreign exchange. As of this time, the early 50’s, crude oil and gas have not been discovered in commercial quantity.
The major advocates of restructuring (the West) thought that the bounties of nature in form of agricultural products would continue. In part therefore it was a self-serving political doctrine which by today’s calculation and climate change is no more realistic.
Coincidentally, apart from changing political situation in the country, the economies of the major component units began to change dramatically. The eastern block which also comprised peoples other than those in the Ibo states suddenly found themselves in the fortunate circumstance of having crude oil, literally in their compounds and near homesteads. Almost at the same time, the production of primary exports began to shrink dramatically in the West and in the North, making the proponents of restructuring less vocal in the West, but the seed of the political slogan has been planted.
With the full integration of the Nigerian economy, export of crude oil and gas took the front burner resulting into about 80-85% of our foreign exchange earnings. Yet, the remnants of the political opportunism of yester-years persist. The resurgence occurs occasionally before and during national elections when ‘migrant’ politicians move from one political party to another. For example during the last dispensation in Nigeria, President Goodluck Jonathan thought vainly that the best way to ‘capture’ the West was to inform the politicians that he would implement the reforms recommended by the last Confab, including what the West and Eastern blocks called ‘restructuring’. Indeed during the campaign, tribal chieftains in the South-south and their collaborators in the South-west pleaded passionately for restructuring. Unfortunately our national rulers who gave tacit support for such misadventure were hoodwinked and manipulated.
During the last Confab, the delegations from South-west were loudest in favour of restructuring the Nigeria polity. I was wondering what kind of restructuring would take place considering the level of representation even of the states in the West at the Confab. For example, by sheer manipulation, Ekiti was represented by five members, Ondo nine, Ogun 19, inclusive of the opportunists called Civil Society Groups. In a restructured Nigerian society, the imbalance even in the West would be so obvious that we would be exchanging one imperialism with another (with Ekiti five and Ogun 19!). This of course is totally unacceptable.
The above reference is in fact a minor issue compared with the near-catastrophe that will befall a section of the Nigeria society, if ‘restructured’. Restructuring in its entirety means annexing, managing of internal resources and unlike the present system where the components of the federation dip their hands in to the national till, a restructured Nigeria bordering on confederation will make the federating units assume authority on all matters, except defence and external affairs while contributing funds to the national treasury.
I keep on wondering whether our politicians in West, some of whom have gone round the parties, ever appreciate the near disastrous condition of our resources, cocoa plantations and our palm produce. For example, Nigeria once third producer and exporter of cocoa, (behind Ghana and Ivory Coast), is today at the bottom of the international league including Brazil. Where will the Internally Generated Revenue (IGR) come from to sustain a confederating Western Nigeria?
I observe some young people who found themselves (husband and wife) at the National Conference now declaring themselves itinerant professors and making themselves available for incoherent lecture circuits in Nigeria. I am amused by the repetitive position of aged, if not saline Afenifere stalwarts who over the last 70 years have said nothing new. Apostles of ‘true federalism’ and ‘restructuring’ remind us of the 50’s and 60’s in the Western Region. In spite of the economic growth and funds available to government, development efforts and projects did not go round in the region. In my part of the region, Ondo Province, now Ondo and Ekiti states, there were no tarred roads, no pipe-borne water, only one hospital and no government sponsored educational institution. Is this the ‘true federalism’ we want?
With all the above, one would ask what does the country need to survive as a nation? Minus our sluggish judicial system, there is nothing wrong basically with the present system. Problem is our institutions are not strong enough and we have not been led by the leadership that a nation like ours deserves. We only hope the present dispensation will bring out the change in our country and a quick adjudication of the problems that arise in the administration of the country.
- Fasuan, MON, JP writes from Ado-Ekiti
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Group calls for restructuring
The Igbo Conscience (TIC) has called for the restructuring of the country.
The Chairman of the group, Mr. Monday Ubani, said the country must be restructured to foster true federalism. He said TIC has reached out to those who share its views on how to sustain Nigeria’s unity.
Ubani added: “TIC is promoting the harmonious co-existence between Igbo indigenes and their host communities, anywhere they live. We believe this is paramount to national unity and integration.
“This group came about given the rising concern over the safety and interest of Ndigbo in the country that is greatly polarized along ethnic and religious lines.”
He said the group was yet to be properly briefed on the concerns raised by Igbo on the transfer of Boko Haram prisoners to Anambra State, adding that the state government and the Anambra State House of Assembly are capable of dealing with the authenticity of the issue.
“We are not having the real information, whether Boko Haram prisoners have been relocated to Anambra or not. In any case, prisoners can be transferred to any part of the country, but those awaiting trial could not be moved because they need to be tried within the jurisdiction where the offence was committed.”
Ubani said TIC would act and defend the interests of the Igbo, urging them to be law abiding in the pursuit of their legitimate businesses. He said: “We are brothers in the country. Yoruba, Hausa, Igbo and other nationalities are united by our common interest which is the national unity. We are better as a united country; we are trying to ensure that Nigeria is stronger irrespective religion or ethnic character.
“To these lofty ends therefore, TIC will identify with progressives and informed Igbo professionals who will work as think tank that will work for the interest of Ndigbo while not undermining the interest and well being of others.”
He maintained that TIC will seek consensus and compromise where need be with other ethnic units in Nigeria, noting that this remains the only guarantee for peace and fruitful co-existence.
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80 capital market firms may opt for mergers, acquisitions, restructuring
Not fewer than 80 capital market firms may opt for business combination and restructuring, according to a source in the know of compliance with the new minimum capital requirements at the capital market.
According to the source, the compliance reports filed with the Securities and Exchange Commission (SEC) have so far indicated that while most capital market operators may scale through by the September 30, this year deadline, some 80 capital market firms may have to undertake mergers and acquisitions or downsizing of their operations to stave off the threat of liquidation.
The source said more than 300 operators have complied with the new minimum capital requirements for their functions, leaving about 170 operators.
Almost half of these operators have already been determined to be inactive and will likely be the first set of operators to be weeded out under the first compliance check.
The Nation on Monday reported that SEC has given capital market operators seeking to undertake mergers and acquisitions or any reclassification of their functions a deadline of July 31 to formalise such arrangement and file the necessary information with the apex capital market regulator.
In a July 4 circular to capital market firms, the apex capital market regulator directed operators, which might have opted for mergers, acquisitions or any other form of business combination as a vehicle to meet the new minimum capital requirements to file their notifications with the Commission not later than July 31, this year.
The directive also applies to capital market operators proposing reclassification or reduction of their registered functions, including those seeking to downsize from stockbroker to sub-broker, broker-dealer to either broker or dealer and from multiple functions to a single function among others.
The Nation recently reported that some capital market operators were considering mergers and acquisitions as viable alternative plan to stave off the threat of liquidation.
Market sources had said there had been intense discussions around consolidation, a reference to mergers and acquisitions, in recent months as the new management of the apex capital market regulator insisted it would not rescind earlier decisions on the new minimum capital base.
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Desopadec restructuring best for Delta
Itsekiri youth leader in Warri North council of Delta State and Niger Delta activist, Comrade Benson Erewa Mengison was one of those who was active in the fight to oust the military from power in the 1990s. Sixteen years after the return of democracy, he spoke with reporters on sundry issues affecting Delta state, including the proposed restructuring of the state intervention agency, DESOPADEC and others.
That is your position on the bill before the House of Assembly for the re-structuring of the Delta State Oil Producing Areas Development Commission (DESOPADEC)?
If you create time to study the details of the bill thoroughly, you will agree with me that if becomes a reality, apart from the creation of more employment opportunities for Deltans, particularly oil producing areas, it will also bring development closer to the grass-roots. I, therefore, urge every Deltan to give the desired support it requires to see the light of the day. The benefits are quite numerous and we should not sabotage the process.
I am aware that our Ika brothers and sisters recently protested against the proposed restructuring to the governor of the state instead of channeling their grievances through the member representing their constituency in the Delta State House of Assembly. It is not fair; they could have presented the issue through their member at the Assembly instead of the governor.
When the governor recently constructed and commissioned flyover at Warri and Asaba, towards the end of his tenure, nobody raised eyebrow, why is there so much noise about the proposed restructuring of DESOPADEC?
I was one of those who agitated for the establishment of DESOPADEC; we were led by Chief Willington Okrika and Chief Rita Olori. It has brought so much development to the state today, it’s a dream come true. We have carefully looked at the activities of DESOPADEC from its inception, we have found that it has fared very well. Those who have managed the organisation have made us proud.
How would you assess Dr. Uduaghan’s eight years of governance?
Dr. Emmanuel Eweta Uduaghan is a man of peace. He maintains his calm nature despite persistent provocations. As a practicing Christian, he believes that vengeance is of the Lord. And he goes about promoting peace as an act of state policy, this attribute of his has started manifesting itself when he was appointed secretary to the State Government (SSG) during the former administration of Chief James Ibori.
As SSG, Uduaghan was the alter ego of that administration in terms of peace advocacy. He was always at the riverine areas of the state predominantly inhabited by the restive youths, making peace and pacifying nerves. In fact, when hostage taking reared its ugly head to Delta State, it was Uduaghan, as SSG, who provided the magic wand. It is on record that about six foreign oil workers who were kidnapped in Delta State were released to Dr. Uduaghan in 2006.
Dr. Uduaghan’s giant strides in areas as diverse as urban development, social welfare and rehabilitation, information, culture and tourism, the environment, youth development, health, power, housing, commerce and industry, transport, energy, water resources, and sports, are legendary. Above all, Uduaghan has pursued reconciliation not just between himself and other aggrieved politicians but also across board because he knows that this is the precursor to peace and development.
If Uduaghan’s strides in physical infrastructure is astounding, his foray into agriculture shows that he has realised that food production would serves as alternative to oil. The state ministry of agriculture has been strategically positioned to meet the Governor’s policy on food production and food security. He has revived commodity boards that will help enhance the growth of agriculture in the state. It is also applicable to education which the governor has given top priority in realisation of the benefits which it brings to society.
As someone who joined the fight to kick out the military from power, do you think Nigeria has fared well after 16 years of democracy?
I am quite excited that Nigeria’s democracy, which is fashioned after America’s presidential system, has begun to take root because of obvious factors. Since, independence on October 1, 1960, Nigeria has had an unstable polity characterised by long years of military leadership. Between 1, 1960 and May 29, 1999 Nigeria has had different military administrations: General Aguiyi Ironsi (January 1966-July 1966), General Yakubu Gowon (July 1966-February 1975), General Murtala Mohammed (February 1975-February 1976), General Olusegun Obasanjo (February 1976-October 1979) etc. General Mohammed Buhari (December1983-August 1985), General Ibrahim Babangida (August 1985-August 1993), General Sani Abacha (August 1993-June 1998), General Abdusalam Abubakar (June 1998-May 1999). What this simply means is that democracy is still in its infancy in the country.
The problems of democracy in Nigeria cannot be limited to just the factors above, but could take their bearing from all of them. Nonetheless, the central impediment to the growth of democracy in Nigeria is the inability of the system to adapt to our local environment.
Right from independence, Nigeria has had two brands of democratic system-the parliament system and the presidential system. Nigeria has had experiment with numerous constitutions. The first was the independence constitution of 1960, which was swiftly suspended as soon
as the military struck on January 15, 1966. Since then, it has become fashioned for a new constitution to emerge each time there is a change of government. The 1999 constitution, which the late General Sani Abacha designed, was eventually promulgated into law by General Abdusalami Abubakar who succeeded him. Due to the hastiness with which it was produced, the constitution was thought by many Nigerians to have hindered our polity. For instance, some critics of the constitution argued that it should have made provisions for the complex nature of our society.
Sir, what would you say was responsible for the situation?
Though, some elites have argued that Lord Frederick Lugard without the consent of Nigerians merged the North and the South for convenience of the British government. It is sad to state that since then, progressive retrogression and continuous injustice have been the lot of the majority of the citizenry. The British colonization brought together three vast and cultural distinctive regions – North, South-East and South-West and at least 250 different language groups, more than any other African country.
Nigeria inherited the British-style of parliamentary system, with Dr. Nnamdi Benjamin Azikiwe (first Nigerian media mogul) as the governor-general and from 1963, President, Sir Abubakar Tafawa Balewa of the NPC as the Prime Minister, exercising executive power and Chief
Obafemi Awolowo as the opposition leader. The Northern, Western and Eastern Regions constituted the country’s tripartite structure, until the Mid-Western Region was created in 1963.
The last twenty years in Nigeria have witnessed a multiplicity of tensions, crises and conflicts. The decade of unparalleled difficulties in Nigeria has, to some extent, brought the feeling of nervous, gloom, anxiety, worry, pressure, intimidation and very dangerous condition in the relationship between the people and the various governments, particularly between 1993 and 1998.
The cancellation of the June 12 presidential election, won by the late Chief M.K.O. Abiola which was considered by the international observers as well as Nigeria, the freest and fairest election not only in Nigeria but in Africa. This same election was cancelled by the Babangida junta without giving the masses including the talakawas, any clear-cut reason in his broadcast on June 23, 1993 for its cancellation.
The annulment by the Babangida junta brought in an unprecedented political unrest, ethnic crises and ideological conflict, which eventually brought in the Africa celebrated dictator, General Sani Abacha to power in 1993 between 1993 and 1998, Nigeria experienced the worse years of multiple assassinations, bombing of innocent people and unjust detention, harassments and armed conflicts.
It is crystal clear that Nigeria is groaning under the yoke of widespread poverty characterised by hunger, malnutrition, social vices, decaying infrastructure among others. Over 70 per cent of
Nigerians live below the poverty line, despite the fact that Nigeria is the sixth largest oil-producing nation OPEC.
It is also astonishing that Nigeria ranks as one of the poorest nations on earth. What an irony? Where has the oil money gone? This is a question that is begging and weeping profusely for response. It is no exaggeration to say that the nation’s economy is suffering from internal indiscipline and external shock largely induced by the overdependence on crude oil as the sole pillar of national survival as well greed of some of our leaders.
This country is not going to move forward for prosperity (though I am not a prophet of doom) through some people’s manipulations, but on the basis of truth and nothing but the truth. Manipulation can take place for a very long time but is will never stand the test of time. Our over-dependence and or over-reliance for too long on one single commodity namely petroleum had led to youth’s gansgterism, aggressiveness, and restiveness as well as premature death through inferno as a result of vandalization of petroleum pipelines.
We need to exhibit patience in nurturing democracy and its institutions in Nigeria. It has been said quite often that before the several military coups, which had occurred in Nigeria, some civilians had always invited the junta to take over the administration of the country based on their selfish reasons.
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Row over restructuring of Lagos Airport Hotel
THE board and management of the Odu’a Investment Company are on a collision course over the reorganisation of one of its subsidiaries, Lagos Airport Hotel.
The bone of contention is the alleged refusal of the Group Managing Director, Mr. Adewale Raji, to heed the advice of other members of the board on the running of the company.
Chairman of the board, Dr. Isaac Akintade, and the GMD are said to have disagreed over the preferred approach to salvaging the Lagos Airport Hotel, which had recorded losses for five consecutive years until 2013.
In a telephone interview with our correspondent, Akintade accused Raji of not fully keying into the vision of the board to return the hotel on the path of profitability, adding that the board would not sit by and allow the situation in the company to degenerate before taking action.
Confirming this development, a staff who asked not to be named because he is not authorised to speak for the company said: “The manner in which the members of the board of the owner company, Odu’a Investment Company, want to concession the subsidiary company without due diligence has pitched them against the GMD.
The source further revealed that the board had earlier sought the advice of Greenwich Trust Ltd and KPMG Advisory Services to critically look at the challenges of Lagos Airport Hotel and come up with solutions.
The Nation learnt that the consulting firms offered some recommendations, which include amongst others affiliating the hotel to reputable international brands like Marriot, Radisson and Protea.
But the Akintade-led board, it was learnt, allegedly preferred a relatively unknown brand to take-over the hotel. In the bid exercise, the board reportedly disqualified Messrs ARM Investments Ltd, the owners of Four Points by Sheraton, Lagos, which was adjudged as the best bidder.
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AIICO completes restructuring, cancels 1.87b shares
AIICO Insurance Plc has completed its group corporate restructuring and consolidation as the insurance group seeks to enhance its corporate efficiency and reduce costs.
The restructuring included the consolidation of other subsidiaries, such as AIICO General Insurance Company Limited and AIICO Asset Management Company Limited.
The consolidation led to cancellation of 1.87 billion ordinary shares of AIICO Insurance Plc, reducing the issued and fully paid ordinary shares of the company to some 6.93 billion ordinary shares.
It came on the heels of a $20 million convertible loan deal between Aiico Insurance Plc and the International Finance Corporation (IFC).
AIICO had indicated in January that it had opened discussions on a $20 million convertible loan deal that may see IFC holding substantial equity stake in the Nigeria-listed insurance company.
Regulatory filing indicated that the IFC, the private sector arm of the World Bank, plans to extend $20 million, about N3.4 billion to Aiico Insurance.
Under the arrangement, IFC has an option to convert any unpaid part of the convertible loan to equities in Aiico, referencing similar strategy that has seen IFC acquiring major stakes in many Nigerian financial institutions.
At market valuation, the convertible loan deal could see IFC holding as much as one third of Aiico’s shareholding. Aiico’s issued share capital of 8.80 billion ordinary shares of 50 kobo each is valued at N6.86 billion.
IFC had made similar arrangement to invest $12.5 million in Custodian and Allied Insurance Plc in 2012. The Custodian deal came through a 4.5 per cent convertible loan stock, an approximately N1.95 billion deal that allowed IFC to convert the debt stock into equities upon the terms of the agreement.
IFC acquired additional 4.6 per cent equity stake in Ecobank Transnational Incorporated (ETI) Plc, the financial services holding group for all Ecobank banks, including Ecobank Nigeria Limited.
ETI, which is listed on the Nigerian Stock Exchange (NSE), Ghana Stock Exchange (GSE) and the BRVM, Abidjan, issued more than 838.32 million ordinary shares of 50 kobo each to IFC, through convertible loan deals involving two funds being managed by the corporation.
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Restructuring: UTC replaces board
UTC Nigeria Plc yesterday took a massive sweep in its ongoing restructuring exercise with the replacement of its entire six-man board of directors.
A regulatory filing obtained by The Nation yesterday indicated that a new board of directors has been constituted to reflect the change in the ownership interests and key points of restructuring, which had saved the ailing food company from being delisted from the Nigerian Stock Exchange (NSE).
The new board of directors included Mr Olaoluwa Akinkugbe, as chairman, and Ms Imoni Akpofure, Mr Offong Ambah, Ms Olubunmi Fayokun, Ms Olatoyosi Kolawole and Mr Adedotun Sulaiman, as directors.
The new board replaced the previous board under the chairmanship of former director general of the NSE, Apostle Hayford Alile and other directors including Mr. Fola Adeola, Engr. Kadri Adebayo Adeola, Mr. Deji Alli, Mr. Bode Adedeji and Mr. Victor Gbolade Osibodu.
The new chairman of board of directors, Mr. Akinkugbe, is currently the National President of the Nigerian American Chamber of Commerce. He is also on the boards of many companies and associations including Mouka Nigeria Limited and Lagos Business School Alumni Association.
UTC Nigeria’s share price yesterday remained unchanged at its nominal value of 50 kobo, the price it has been for many years.
Sources in the know said the change in the board of directors was the crux of recent restructuring initiatives.
UTC Nigeria had last year listed among companies to be delisted by the NSE for failure to comply with post-listing requirements, including poor and late submission of earnings report, a recurring failure that had earned it sanctions and fines in the previous years.
The company however had reached out to the NSE with details of its restructuring programme. This staved off the delisting.
The NSE had in late June 2014 issued a three-month notice of compulsory delisting to some 24 companies for various corporate governance and post-listing failures, especially non-release of financial reports and accounts for several years.
The affected companies included Investment and Allied Insurance Plc, Goldlink Insurance, Afroil, Rokana Industry, IPWA, West African Glass Industry, Nigeria Wire and Cable, Starcomms, Daar Communication, Mtech, Big Treat, G.Cappa, FTN Cocoa Processing and UTC Nigeria.
Others included Stockvis, Nigeria Sewing Machine, Jos International Breweries, Capital Oil and Golden Guinea. The NSE had indicated that while the five of the companies including Stockvis, Nigeria Sewing Machine, Jos International Breweries, Capital Oil and Golden Guinea were penciled for delisting because they failed to regularize their listing status, other companies were being delisted because they have failed to submit requisite financial and operational statements.
The Exchange however later confirmed that 14 companies have started some steps to regularize their listing status. These included Goldlink Insurance, Rokana Industry, IPWA, Daar Communication, G.Cappa, FTN Cocoa Processing, UTC Nigeria, Stockvis, Nigeria Sewing Machine, Capital Oil and Golden Guinea Brewery.
The NSE had told The Nation then that it might consider a bouquet of waivers and incentives for ailing companies that have opted to restructure their operations in order to meet the stringent corporate governance standards required of quoted companies.
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NSE mulls waivers for restructuring firms
The Nigerian Stock Exchange (NSE) may consider a bouquet of waivers and incentives for ailing companies that have opted to restructure their operations in order to meet the stringent corporate governance standards required of quoted companies.
Not less than 23 companies have recently indicated that they would be restructuring their operations and management frameworks, including 18 companies that were forced into restructuring by delisting notice by the NSE.
In a response to media enquiry by The Nation, the management of the Exchange said that some incentives and waivers might be provided for companies with clear restructuring roadmaps and desired commitments to their restructuring processes.
According to the Exchange, there would be consideration for companies making efforts to comply with the post-listing rules and best practices.
“The Exchange will give due consideration to well-reasoned and supported requests from companies considering restructuring on a case by case basis,” NSE stated.
Although the NSE did not outline the applicable waivers and incentives, sources in the know said the waivers may include the reduction and restructuring of outstanding annual listing fees and penalties for the heavily indebted companies and exemption from further penalties within a given timeframe.
The NSE had in late June issued a three-month notice of compulsory delisting to some 24 companies for various corporate governance and post-listing failures, especially non-release of financial reports and accounts for several years.
The affected companies included Investment and Allied Insurance Plc, Goldlink Insurance, Afroil, Rokana Industry, IPWA, West African Glass Industry, Nigeria Wire and Cable, Starcomms, Daar Communication, Mtech, Big Treat, G.Cappa, FTN Cocoa Processing and UTC Nigeria.
Others included Stockvis, Nigeria Sewing Machine, Jos International Breweries, Capital Oil and Golden Guinea. The NSE had indicated that while the five of the companies including Stockvis, Nigeria Sewing Machine, Jos International Breweries, Capital Oil and Golden Guinea were penciled for delisting because they failed to regularise their listing status, other companies were being delisted because they have failed to submit requisite financial and operational statements.
The Exchange has confirmed that 14 companies have started some steps to regularise their listing status. These included Goldlink Insurance, Rokana Industry, IPWA, Daar Communication, G.Cappa, FTN Cocoa Processing, UTC Nigeria, Stockvis, Nigeria Sewing Machine, Capital Oil and Golden Guinea Brewery.