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Tag: Stakeholders

  • Stakeholders decry sale of govt land

    Stakeholders decry sale of govt land

    Concerned stakeholders, Ibadan chiefs, elders, prominent sons and daughters of the ancient city have appealed to Oyo State Governor Seyi Makinde to look into alleged sale/lease of government land (leisure centres) in Ibadan.

    They described the property as a heritage of Ibadanland and Oyo State, alleging that some people, who were not indigenes of Ibadanland, but were at the corridor of power, had taken up the property, mostly without the consent of the governor.

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    Approval was said to have been given to transform some leisure centres to housing estates, but the stakeholders alleged that some people had acquired virtually all the choice landed property in Government Reserved Areas (GRAs).

    One of them, who is a Mogaji, but preferred anonymity, alleged: “Hardly will you see Ibadan indigenes having property on housing estates in Ibadan, including choice areas. All our choice areas have been taken over by people who are not even indigenes of Oyo State.

    “We want to say that the governor has good intention for the development of Ibadanland and Oyo State as a whole. The centres are our heritage and inheritance, which should not be given to strangers.

    “We know that Governor Makinde is a listening governor. He will not allow our heritage and inheritance to be sold out. He is also an Ibadan man; we are confident that the governor will do the needful and address the issue.”

  • ‘Stakeholders, communities not aware of HCD benefits’

    ‘Stakeholders, communities not aware of HCD benefits’

    The Regional Consultant, Southsouth, of Human Capital Development (HCD) programme, Mr. Olusoji Adeniyi, has said most stakeholders and communities are not aware of the benefits of HCD, a project of the National Economic Council (NEC).

    He urged reporters to always adequately report the three thematic areas of HCD: health and nutrition, education and labour force participation, thereby enabling beneficiaries to understand the benefits inherent in the initiative.

    Adeniyi spoke over the weekend at a two-day media engagement in Benin, Edo State.

    The consultant, speaking about “Accelerating HCD Base in Nigeria”, said the three thematic areas of HCD were poorly reported.

    He said the media professionals needed to say more about what government was doing through the HCD, to enable residents of the communities to become aware of the benefits of education and other thematic areas of the programme.

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    Adeniyi said: “The initiative is to build the capacity of media managers and reporters, thereby introducing to them the components of HCD, so as to avoid misconception.

    “We want to let you know that HCD is a life cycle of a child effect, which begins from the womb, the health of the mother, breastfeeding, nurturing of the child and the educational status of the child. It involves the opportunity for the child to become employable through the skills that they would have got.

    “The media need to engage people of the communities, in order to let them know that a child that is wandering about during school hours is a child that is likely to drop out of school, and he/she needs to be corrected, and taken back to school.”

    “We want people to understand that a child that is going to be fully developed to contribute to the economy of the nation starts from when the child is in the mother’s womb. 

    “There should be close monitoring until the child is given birth to in a facility that has the right kind of birth attendants, so that we do not lose the child and mother to infant and maternal mortality.”

    The consultant also urged the focal persons of HCD and other information managers to see reporters as progressive partners, stressing that hoarding information about HCD and other government projects amounted to doing more harm than good.

    Adeniyi said no fewer than 260 reporters had been trained in HCD programme in the Southsouth region.

    Edo HCD Focal Person, Mrs. Violet Obiokoro, who is also the Managing Director, Edo Skills Development Agency (Edojobs), said Governor Godwin Obaseki heavily invested in HCD, which she described as commendable.

  • Stakeholders call for sustained war against oil theft, corruption

    Stakeholders call for sustained war against oil theft, corruption

    Eshanekpe Israel, also known as Akpodoro, was leader of ex-agitators in Niger Delta. Judging from the success in protecting oil pipelines from vandals and preventing oil thieves from pillaging the nation’s wealth, Israel and other stakeholders in the upstream and downstream sub-sectors of the oil industry have advised the Federal Government to review the contract awarded to Tantita Security Services Limited (TSSL) to secure more gains. CHINAKA OKORO reports

    Before now, he was a leader of ex-agitators in Niger Delta. His agitation was for the benefit of Niger Delta inhabitants and ecosystem. He is Eshanekpe Israel (also known as Akpodoro). Today, he  has joined forces in the search for peace and security of the nation’s critical infrastructure, especially in the oil sector.

     His embrace of peace as well as negotiation to solve problems and settle feuds ushered in new vistas that engendered economic prosperity instead of the dreary situation that made the attainment of peace taxing.

     It is a given that corruption in the upstream and downstream sub-sectors of the oil industry accentuated by oil theft has damaged the fabric of the nation and impoverished the people.

     Oil theft was a huge industry prior to 2022 when majority of the areas with huge prevalence of the menace were ceded to Tantita Security Services Limited (TSSL), owned and managed by Chief Government Ekpemukpolo, also known as Tompolo.

    The contract, which was awarded by Nigeria’s joint venture partner, Nigerian National Petroleum Company Limited (NNPCL), to TSSL has evolved a good template for the security of oil pipelines in coastal areas of Delta, Rivers, Edo, Ondo and Imo states, with TSSL possibly proposing to offer its services to secure pipelines in Akwa Ibom, Cross River states, to eradicate the menace of crimes and criminalities ravaging the region.

     Despite objections by agents and foot soldiers of crude oil thieves, TSSL has demonstrated competence, capacity, and technical know-how to deal with economic saboteurs who have denied the country huge revenue for too long.

     The oil thieves are, undoubtedly, very sophisticated and with a war chest to attack whoever blocks their way or prevents them from carrying out their nefarious acts to the detriment of citizens. This is because those who engage in this act of disruption of the country’s economy are men and women across segments of our society, including those whose duties are to protect lives and properties, particularly national assets.

     Experiences have shown that the illegal actions in coastal areas are perpetrated, allegedly, by security agents who happily steal petroleum products. They are, it is alleged, egged on by those who occupy the corridors of power and the highest echelon of the national security apparatus.

     The oil industry in Nigeria is a huge enterprise for criminals. This explains why most security agents are alleged to bribe their way to ensure they are posted to Niger Delta so that they would make quick money and to aid and abet vandalism, product adulteration, and illegal bunkering. They, in return, are alleged to pay returns in millions to those in the office who posted them to such beats where they perpetrate crimes.

     A story was once told about a senior police chief who served in one of the Niger Delta states. When he was about to retire, he ensured that two of his children were posted to the same state where they held sway. Should this story be true, the officer’s family must have regarded the Delta region as a cash cow that should be milked dry as long as they are in the police force.

      To this category of people, TSSL can never be a good organisation because Tompolo is throwing spanners into their work. The only way they can kick is to recruit commercial writers to spew garbage in their attempt to hold on to the straw. They can do anything to blackmail an outfit that has saved the country from losing billions of dollars daily to thieves.

     Incidentally, these rascals are those who are quick to dismiss Nigeria as a failed state. They are the bulk who see nothing good in Nigeria.

     The second category of oil thieves are those who are employed to work in the upstream and downstream sub-sectors. They connive with outsiders to compromise the security of companies that employed them. They give out credible information to oil thieves; they often engage directly to vandalise and pump out petroleum products and ferry the same abroad with the connivance of their larcenous cabals in and outside the corridors of power.

    The above category is where the employees of oil companies, their consultants, members of their management teams and the reprobates in power belong.

    A time was when it was reported that more than half of the theft in the coastal areas was perpetrated by the highest echelon of power.

     Another category of these thieves of our commonwealth are the fat cats. They are wealthy men who have the war chest to bribe anyone to do their bidding; and their inducements are in dollars, even as they have connections with foreign accomplices. Their business is oil theft. They are internationally renowned rogues in the oil industry across the globe.

    They load from point “A”, ostensibly to discharge at point ‘D’ but criminally divert the same product to point ‘S’, negating the dictates of their clearance.

    This callous development explains why FAISEL, a vessel suspiciously laden with stolen crude oil products was arrested by TSSL operatives on August 2.

     As if it is not shocking enough, in a dramatic twist, the Navy rose in defence of owners of FAISEL and the suspected stolen products. That speaks to the magnitude of a deep-rooted criminal network in our waterways as it concerns our national assets. Foreigners are involved in this, making the process cumbersome for unbiased investigators.

     It should be noted that shortly after being awarded the surveillance contract, TSSL discovered 58 illegal loading points in Delta and Bayelsa states where crude was being stolen unfettered. This development raises more questions than answers. Even the deaf can understand why the illicit trade in crude oil thrives in our clime. There’s no way crimes can successfully be perpetrated on the waters without connivance of the Navy.

     On July 10, 2022, TSSL personnel arrested an oil tanker loaded with unspecified quantity of crude oil on Escravos Rivers in Warri South West Local Government of Delta State.

     Some stakeholders believed that “as a country with an estimated population of 200 million, the government should uphold the tenets of transparency, accountability, law, and order – enforcement without let or hindrance.

     “The Federal Government should take the war against criminalities to the doorsteps of the perpetrators by engaging in community policing; a model that is working for TSSL.

     “Most of the operatives of TSSL were recruited from the operational areas of the security firm, making them formidable and impervious to criminal elements. They bust crimes with mathematical exactitude, and they exude precision in their intelligence gathering and management with fewer enemies/thieves which accounts for the huge success they have recorded.

    “The operatives of TSSL go for their targets as soon as they are within the territory for their traditional and dangerous business of oil theft, no matter whose ox is gored.

    “Tompolo has made oil theft unattractive in that region. Tantita has brought fear into the business of oil thieving because he has the moral, mental, and psychological rectitude to carry out his duties.”

     In addition to the advantages of engaging over 2,000 men and women who are well-trained in the business of combating marine crimes within our territorial waters, TSSL is a model in the protection of our commonwealth and should be further encouraged by engaging that outfit for optimal performance.

     The Federal Government should disregard insinuations that tend to paint TSSL in a bad light. This is because those voices emanate from reactionary elements that are out of business due to the fact that Tompolo is sending them into oblivion by dismantling their criminal enterprises, an action that would make them run out of steam soon.

    While Nigeria’s security platforms raise the bar in ensuring that money mongers within its ranks are shown the way out, the oil companies should weed out criminals in their employ. The Federal Government should beam searchlight on any of its agency that conspires to compromise the Nigerian state.

     When a system fights corruption, certainly, corruption will fight back. The ranting and raving of agents and foot soldiers of oil thieves must be ignored while TSSL operational scope should be widened to cover other states in Southsouth.

     The time has come to call a spade by its name. With the success in safeguarding the oil pipelines and preventing thieves from pilfering our commonwealth, stakeholders in the upstream and downstream sub-sectors of the oil industry are upbeat that the country’s oil sector would be safe from pilfers and the economy in good shape from the accurate revenue accruable therefrom should TSSL be allowed to continue with its good job.

     This is because, Nigerians, as critical stakeholders, are happy with what Tompolo is doing in the security of oil pipelines. They also believed that TSSL security contract should be reviewed to encompass vested interests and widen its operational scope.

     They urge that the contract sum be reviewed upwardly to enable TSSL build a war chest for its operatives to match the challenges posed by rich criminals on the marine.

     The oil thieves are enemies of the Nigerian state.

  • Edo govt, stakeholders partner to boost tourism

    The Edo State government and stakeholders in the state’s tourism sector have identified new channels and offerings to attract more tourists to the state, as part of strategies to expand the portfolio of its assets in the arts, culture and tourism sector to grow inbound tourist traffic.

    This was the outcome of a parley organised by the Ministry of Arts, Culture, Tourism and Diaspora Affairs, to mark the  World Tourism Day in Benin City, the state capital.

    Held at the Ogba Zoological Garden in Benin City, the stakeholders said the new offerings would include siting of clean markets for tourists, inclusion of tourism studies in school curricula, re-engineering of monuments to their original specification and promotion of community tourism.

    Commissioner for Arts, Culture, Tourism and Diaspora Affairs, who was represented by the Permanent Secretary in the ministry, Mrs. Dorcas Idehen, said the state government is reviving tourism sites in the state to provide means of livelihood for youths and women and also boost economic diversification. He urged youths to take advantage of reforms in the tourism industry to make money for themselves and their households.

    The commissioner stressed the need for preservation of Edo culture; its language, food and history through which more tourists can be attracted to the state.  He assured that adequate preparation is being put in place ahead of the hosting of the National Festival of Arts and Culture (NAFEST), during which jobs will be created and boost the state’s tourism potential.

    The Managing Director, Ogba Zoological Garden, Andy Ehanire, said tourism remains a veritable means of boosting job creation in Edo State, especially with the state’s rich cultural heritage, sites and monuments.

    Ehanire highlighted factors that would improve tourism development in the state to include siting of clean markets for tourists; inclusion of tourism studies in school curricula, and re-engineering of monuments to their original specification and promotion of community tourism.

    He noted that tourism offers a lot of opportunities for youths to be engaged as tour guides, travel agents, tour operators, among others.

  • Stakeholders hail Idris’ appointment

    Stakeholders have described the appointment of Dr. Salako Idris as the new Lagos State Commissioner for Physical Planning & Urban Development by Governor Babajide  Sanwo-Olu as a square peg in a square hole.

    According to those familiar with the sector, the appointment of Idris is encouraging, inspiring and worth celebrating.

    They said until his appointment, Idris was the Managing Partner, Adesanya Salako & Associates; member of the Nigerian Institute of Town Planners (NITP) and a member at the Town Planning Registration Council of Nigeria (TOPREC).

    As a first-time commissioner,  they said Idris should win the confidence of the people, by reassuring them that he is the right man for the job.

    Like other commissioners, Idris should translate the promises of Governor Sanwo-Olu into action.

    Lagos is a city with enormous opportunities and potential. A cultural melting pot, it is estimated that an average of 6,000 persons from various parts of the country come into Lagos daily. Thus, the city is only growing in population but withoutcorresponding infrastructure development, a challenge ldris has the right credentials to solve.

    He, however, joined the public sector between 2001-2003 as a Town Planning Officer at Oshodi-Isolo Local Planning Authority. Dr. Idris established Adesalako & Associates in 2004, where he has managed, conceptualized; as well as executed several projects in Nigeria.

    These projects include but not limited to Ikorodu Sub-Region Master Plan (2016-2036); the Ministry of Physical Planning and Urban Development (2016); Large/medium/Small Scale Agro-Industrial Parks at Imota Ikorodu; Mowo, Lagos-Badagry Expressway; and Ibeju-Lekki.

  • Stakeholders praise Chevron, Agbami on fight against TB

    Stakeholders in the health sector have commended the efforts of Star Deepwater Petroleum Limited (a Chevron Company) and its parties in the Agbami field – Famfa Oil Limited, Nigerian National Petroleum Corporation (NNPC), Equinor, and Petroleo Brasileiro Nigeria Limited, in the fight against tuberculosis (TB) in the country.

    The stakeholders made the commendation at the National Tuberculosis Conference that held at Abuja. The theme of the conference, organised by Stop TB Partnership Nigeria, was “Building Stronger Partnerships to End TB in Nigeria.”

    In his presentation on the “Role of the Private Sector in Health Systems Improvement: Agbami Parties Experience on TB”, Medical Director, Chevron Nigeria Limited, Dr. Paul Areyenka, who represented the Agbami parties stated that in its over 50 years of operations in Nigeria, Chevron and the parties have been supporting the government in strengthening health systems targeting the triad of HIV, Malaria and Tuberculosis (TB).

    He noted that the Agbami parties have deployed a social health investment programme targeting TB disease, which covers building of infrastructures such as chest clinics, conducting awareness and advocacy campaigns and assisting in protecting TB health care workers in order to contribute towards the National Tuberculosis programme goals.

    “Through the construction and equipping of 28 Chest Clinics across the country, we have contributed to strengthening health systems and supporting the treatment and care of tuberculosis patients in Nigeria. The chest clinics were built in close collaboration with the National Tuberculosis and Leprosy Control Programme (NTLCP) of the Ministry of Health, in existing  government hospitals and handed over to the States in which they are located for management, and the facilities are fully-equipped with standard X- Ray machines, male and female wards, treatment rooms, laboratories and Gene Xpert Machines,” he stated.

    He noted that since 2008, the Agbami parties have spent a total sum of N2.7billion about $16.6million to build and equip the chest clinics which have been donated to government hospitals across the country, adding that between 2015 and 2017, over 48,000 presumptive TB cases have been registered in these facilities, with over 11,000 cases detected. “The chest clinics have contributed to about 3% of the national presumptive TB cases registered and three per cent to the National aggregate of TB cases, while the awareness campaigns have reached over 100,000 community folks and tested over 8000 presumptive cases with about 2000 cases detected,” he said.

    A critical element in the Nigerian national response strategy on TB, he said, is finding missing TB cases. He said the Agbami parties in close collaboration with the NTLCP and specialized Non-Government Organizations (NGOs) have conducted TB awareness and advocacy campaigns in Akwa Ibom, Rivers, Oyo, Kano, Kaduna, Nasarawa, and Lagos.

    Areyenka also mentioned that in recognition of the increased risk of TB infection faced by health care workers (HCWs), in close collaboration with the Federal Ministry of Health, the Agbami parties sponsored health worker training and the publication and distribution of the National Biosafety Standard Operating Procedures (SOP) and the National Standard Operating Procedures for Tuberculosis Laboratory Diagnosis. He noted that the Agbami parties remain unwavering in their commitment to improving the health and wellbeing of people in their areas of operation, especially the most vulnerable groups.

  • How to curb insecurity, by stakeholders

    The major challenge confronting Nigeria today is insecurity. Deputy Editor RAYMOND MORDI sought the views of stakeholders on how to tackle the monster.

    SECURITY has become the biggest issue in the land, following the national outcry that greeted the killing of Mrs. Funke Olakunri, daughter of Afenifere leader Pa Reuben Fasoranti, and similar developments. In a veiled reference to former President Olusegun Obasanjo and other prominent citizens who had criticised the Muhammadu Buhari administration’s handling of the situation, President Buhari had accused his critics of politicising what he described as isolated incidents of insecurity.

    Respondents said the surge of kidnapping and killings by bandits, especially in the Northwest, coupled with the resurgence of a Boko Haram faction affiliated to the radical Islamic State in West Africa poses a threat to national cohesion and peaceful co-existence of Nigerians. The country appears to be facing unprecedented security challenges. What started as a money-making scheme about 15 years ago in the Niger Delta, with the kidnapping of oil workers, has spread to other parts of the country. Syndicates have also been taking a leaf out of Boko Haram’s books by using the tactics of the Islamist militants to raid whole communities on motorcycles.

    Second Republic politician Alhaji Tanko Yakassai said President Buhari must rejig the security architecture, to bring in fresh ideas to tackle the problem. His words: “From all indications, all the ideas that Buhari had to tackle the security situation in the country before he came to power have been exhausted. Members of his security team have also exhausted all their ideas too. Now, as an elected president he has to stay, but I would suggest that he should think of reconstituting his security team, to bring in more ideas. A new team would come up with fresh ideas.”

    Yakassai said it is a source of concern to everybody, because whenever the security of the country is unwholesome, the country is in trouble. He said: “When the current government came into power, the main security challenge facing the nation was the Boko Haram insurgency, but now it has escalated. We now have in addition banditry, kidnapping and ransom taking and clashes between herders and farmers.

    “All these are issues of great concern to the nation and wherever there is a security challenge, nobody will sleep with both eyes closed. But, I don’t see the country going into blazes. This is because people still move about freely.”

    The National Chairman of the United Progressive Party (UPP), Chief Chekwas Okorie, said tackling the security challenges requires a concerted effort, because it is something one organ of government cannot do single-handedly. His words: “Every Nigerian should not only show concern, but begin to participate in restoring some kind of confidence in our country, because agents of destabilisation, agents of disintegration have multiplied and they are both at the highest strata of the society and the lowest, and that is very disturbing.

    “But, what will douse the tension is the idea of convoking a national conference as urgently as possible. I know that many people are referring to the 2014 conference, but because the right steps were not taken in doing so and coupled with the fact that even the people that organized it did not implement even the administrative part of it, it will not work. Besides, since the membership of the conference was one-sided, it would be better for President Buhari to convoke another one.

    “Most of the people who are busy demonizing this president and not seeing anything good in his administration, no matter the good intentions, will be kept busy at that conference; let them go there and proffer what they consider as solutions to Nigeria’s problems and leave the president to concentrate on governance.”

    Former Director General of the Department of State Services (DSS), Afakriya Gadzama, believes inaccurate and dishonest reports from security agencies to the President may be part of the reasons why the country’s security challenges are yet to be surmounted. Speaking recently at the National Institute for Security in Abuja recently, Gadzama said President Buhari must secure alternative feedback channels, to get a broader perspective of the problems bedeviling the country’s progress.

    The former DSS Director General said the true cause of insecurity in Nigeria is bad governance. He said: “For whatsoever reason, they feel shy and don’t tell the truth about the actual situation on the ground, because the threats in those states are mainly as a result of bad governance, misuse of government resources and public funds. In some of these states, the local governments have virtually collapsed and the government is not being told this. We could also see this at the higher level…”

    The UPP national chairman said Nigeria is in dire straits and that it has reached a proportion that is getting everybody worried about the stability of our country, owing to its multi-dimensional nature. He said: “Nigeria has come under close watch by the international community and some of the major nations are beginning to caution their citizens about travelling to Nigeria and movement within the country. It is not something that anybody can pretend doesn’t exist.”

    Okorie said more hands are needed in the police force to tackle the menace. He added: “The issue of community policing should be taken more seriously, so that every citizen would become a police man or informant at the same time. The police also needs to be equipped. They need to be re-organised and decentralised, to accommodate community policing.”

    He said state governors must also be involved in the search for a holistic solution to the problem. He said: “Governors usually take away a large chunk from the state’s treasury as security votes and the security votes are hardly accounted for. So, instead of occasionally buying vehicles and making a show of it, when donating them to the police, the security votes can be deployed quickly to immediately put in place a vigilance group, even if you don’t call it community police.”

    Okorie said said devolution of powers is necessary at this point in time, to bring governance closer to the people. He said powers devolution of powers is a vital component of federalism and that even President Buhari has acknowledged in one of his recent published statements, when he said there is need for true federalism at this point in time. “But, this may take a little bit of time, because when you talk of devolution of powers, you are talking of reducing most of the items in the Exclusive List and moving them to the Concurrent List; so that is a major constitutional amendment,” he said, adding that it can be accomplished through a national conference.

    A communiqué by Prof. Pat Utomi, Mr Donald Duke, Dr Kunle Olajide, Prof. Anthony Kila and Mr. Olawale Okunniyi, on behalf of a group of concerned citizens urged governments at all levels to commence public conversation on state, local  and community policing towards curbing and neutralizing the present state of insecurity.

    While condemning in unequivocal terms the reported murder of innocent Nigerians across the country by bandits and terrorists, the concerned citizens under the umbrella of Project Nigeria Movement, the Patriots and the Pro-National Conference Organisations (PRONACO) called on President Buhari, as the chief security officer to take measures to secure the country and to put in place a serious security machinery “to fish out the criminal invaders and murderers, whoever they are, and to make them pay for their ungodly acts in the interest of justice and peace”.

    The civil society groups, led Prof. Ben Nwabueze (SAN), Chief Emeka Anyaokwu, Admiral Ndubuisi Kanu, General Alani Akinriade, Solomon Asemota, Obong Victor Attah, Prof Kimse Okoko among others, met in Lagos recently to address the current threatening insecurity.

     

  • Stakeholders call for forensic audit of Lafarge Africa

    Stakeholders are seeking a forensic audit of Lafarge Africa PLC to determine the fairness and propriety of its management’s decision, and allay fears of increase of LafargeHolcim’s majority shares in the company under several guise, writes Capital Editor TAOFIK SALAKO

    Shareholders and concerned capital market operators have called on the capital market authorities to undertake a forensic audit of Lafarge Africa Plc to determine the fairness and propriety of the cement group’s management decisions to the Nigerian share-holders.

    They alleged that Lafarge Holcim, the majority core investor in Lafarge Africa, used subterfuges under the guise of financial engineering and group restructuring to unduly overleverage the Nigerian company, propped up Lafarge Holcim’s failing South African business and in the many cycles of capital restructuring and share issuances, increase Lafarge Holcim’s majority shareholding in the Nigerian company.

    The Nigerian Stock Exchange (NSE) at the weekend listed Lafarge Africa as the latest company with a free float deficiency, after Lafarge Holcim increased its majority shareholding to 83.3 per cent from about 71.4 per cent. The NSE flagged Lafarge Africa as a company “below listing standard” with a free float of 16.13 per cent, 3.87 percentage points below the minimum 20 per cent free float for companies listed on the main board of the Exchange.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Under the existing rules, companies listed on the premium board are required to have 20 per cent free float or more than N40 billion of their capitalisation in the hands of general investing public. Companies on the main board are required to have a minimum free float of 20 per cent of their market capitalisation, implying that 20 per cent of the companies’ shareholdings must be available for minority retail shareholders. However, companies on the Alternative Securities Market (ASeM) are required to have 15 per cent free float.

    Stock markets generally maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation and illiquidity.

    Shareholders and capital market operators who spoke to The Nation called on authorities at the Securities and Exchange Commission (SEC) and NSE to investigate the decisions of the board and management of the company and its operations in the past five years, alleging that the foreign majority shareholder, which controls the management, set out deliberately to short-change minority shareholders.

    They raised several posers for consideration by the regulatory authorities including what due diligence informed the group strategy launched in 2014 and the sudden decision to backtrack from the strategy after Nigerian minority shareholders had suffered heavy losses in built-up negative earnings and reduction in shareholding? Why did Lafarge Holcim opt for self-advanced loan rather than equity recapitalisation only to turn around for conversion of such loans to equities under rights issues? They noted that Lafarge Holcim historically built up its controlling shares in the Nigerian company using the same approach of overleveraged recapitalisation. They called for investigation of related-party transactions by Lafarge Holcim and directors of the company in order to determine that decisions were taken in the best interest of the company rather than pecuniary interests of the directors and the major shareholders.

    The Mobolaji Balogun-led board of directors of Lafarge Africa has put five resolutions to authorise the sale of Lafarge Africa’s South Africa’s business, Lafarge South Africa Holdings (Pty) Limited (LSAH), to Lafarge Holcim as part of the special business at the company’s annual general meeting later this month. The flagship of the cement group, Lafarge Cement Wapco Nigeria Plc, which transmuted to Lafarge Africa, had in 2014 bought the South African business from LafargeHolcim under a new growth strategy to create a leading Sub-Saharan Africa building materials giant.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

    Specifically, Lafarge Africa had paid $200 million cash and additional allotment of 724.76 million ordinary shares to acquire the 100 per cent stake in LSAH in 2014. Lafarge Africa had paid the cash and shares allotment to Financiere Lafarge SAS, a wholly owned subsidiary of LafargeHolcim Group.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said the 2014 growth strategy was the beginning of problem for the Nigerian company.

    While agreeing that the decision to quit LSAH might be a good development for shareholders who had groaned under mounting losses, Umar called for investigation of the circumstances surrounding the deals and decisions in recent years.

    According to regulatory filings and shareholders’ notice, LafargeHolcim proposes to acquire LSAH through a $316.3 million inter-group loans swap. The boards of directors of Lafarge Africa and Lafarge Holcim have signed on to the deal and are recommending approval of the transaction to shareholders.

    Under the proposed sale, LafargeHolcim agreed to take over 100 per cent equity stake of Lafarge Africa in LSAH in exchange for a set-off of all the outstanding amounts due by Lafarge Africa to Caricement under the inter-group loan agreements at the closing date which is July 31, 2019. Caricement is a wholly-owned subsidiary of Lafarge Holcim.

    According to official reports, the value of the consideration at the closing date is $316.289 million being the sum total of the principal sum of $293 million and all accrued interest of $23.289 million as at July 31, 2019.

    “We will call on SEC to investigate the transaction and if necessary do a forensic audit to protect Nigerian shareholders,” Faruk said.

    He said Lafarge Africa must halt further right issues and reconsider its business growth strategy if shareholders will benefit from their investments in the company.

    “There is also a need to reconstitute the membership of the board of directors if any meaningful progress is to be made,” Faruk said.

    Capital market operators, who spoke under condition of anonymity, said Nigerian capital market authorities should do critical reassessment of Lafarge Africa in recent years.

    A leading dealing member at the Exchange said the disposal of LSAH is just portfolio restructuring and financial engineering by LafargeHolcim, adding that the transaction is a possible case for forensic audit.

    The dealing member said institutional investors such as pension funds should lead the charge for forensic audit bemoaning the propensity of many minority shareholders to trade key corporate decisions for pittances at general meetings.

    President, Constance Shareholders’ Association, Mr. Shehu Mikail, claimed that the complex transactions were part of a game plan by LafargeHolcim in collaboration with some Nigerian operators to short-change Nigerian minority shareholders.

    According to him, there is a need for forensic audit to ascertain the truth, transparency and accountability of the deals and to unearth the motive for the buyback of LSAH by LafargeHolcim.

    “This calls for proper investigation,” Mikail said, expressing worries that Nigerian shareholders would be short-changed in the ensuing transactions.

    Despite the promises of synergies across the markets, the South Africa’s subsidiary has since been a drag on the performance of Lafarge Africa, which reported a net loss of N10.37 billion by the third quarter of the 2018 business year.

    According to the cement group, LSAH’s operations have been subjected to shrinking demand in South Africa. The competitive environment, slow recovery and struggle to defend market share have heightened market pressure to reduce prices, significantly impacting LSAH’s operating margins in recent years.

    As part of its audit exercise with respect to the 2018 accounts, KPMG Professional Services as auditors of the company, had informed Lafarge Africa’s management that, based upon its assessment of the 2018 performance of LSAH, the valuation of LSAH in the accounts of Lafarge Africa would have to be impaired to a tune of N70 billion.

    The board thus delayed the approval of the 2018 accounts whilst seeking the optimal resolution of the impairment which had a potential major impact on shareholders’ value of the company.

    “During deliberations by the board on this matter, various options were considered including exit from South Africa, the board then arrived at the conclusion that the disposal of LSAH as the best option for halting the potential impairment. In addition and based on well considered metrics and the very limited time to explore other options, the board concluded that a buy-back by LafargeHolcim was the most appropriate means of deriving the best value from the proposed sale in the interest of all stakeholders and most especially the minority shareholders. Understanding the implication of the potential impairment on the company, LafargeHolcim acted timeously by entering into negotiations with the company with respect to the potential sale,” Lafarge Africa explained in a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday.

    According to the board of Lafarge Africa, the proposed sale is expected to enhance the value of shareholders’ investments in Lafarge Africa.

    The board noted that following the conclusion of the proposed sale, Lafarge Africa’s shareholder loan of $293 million as at July 31, 2019, which represents the only existing foreign currency loan in the books of the company will be completely extinguished.

    This full repayment of the shareholder loan is expected to protect and preserve Lafarge Africa’s net Income and cash flows considering the resulting decrease sums to be applied towards debt service while the overall company’s debt will be reduced by N115 billion and an additional N47 billion by the eventual deconsolidation of LSAH.

    “The improvement in cashflow and net income, resulting from the reduction in debt service outflows, will enable Lafarge Africa to consider additional investments in cement production capacity to improve its market share in Nigeria. The sale is expected to boost the company’s profitability, through positive cash flow generation,” Lafarge Africa stated.

    Lafarge Africa had had on November 24, 2017 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened on Friday November 24, 2017 and ran till the close of business on Friday, December 15, 2017. Lafarge Holcim, using debt-for-equities conversion deal, picked up its rights fully and further subscribed to the un-allotted shares, thus raising its percentage shareholding by 4.97 percentage points from pre-rights issue position of 71.35 per cent to 76.32 per cent after the rights issue.

    Lafarge Africa also launched another rights issue in December 2017 offering 7.43 billion ordinary shares of 50 kobo each at N12 per share. The rights were pre-allotted on the basis of six new ordinary shares for every seven ordinary shares held as at the close of business on Tuesday, December 4, 2018. Acceptance list for the N89.2 billion rights issue, which had opened on Monday December 17, 2018, closed on Monday January 28, 2019. The N89.2 billion rights issue was also structured like the November 2017 rights issue, including a convertible deal that allowed LafargeHolcim to convert its debts to equities. This further increased LafargeHolcim’s majority stake.

  • Stakeholders urge FG to return SON to ports

    The maritime stakeholders’ have urged the federal government [FG], to return Standards Organisation of Nigeria (SON) to the nation’s ports, in order to stem the increased inflow of substandard products into the country.

    They also said that the return of SON back to ports would help to achieve FG’s initiative of ease of doing business. According to them, the idea of the agency chasing container on the high way or going to warehouse for enforcement on importer of substandard products does not benefit the country any longer.

    “We need them at the ports now, so that the agency can carry out its mandate along with other agencies at the ports,” said the President, Nigeria National Association of Government Approved Freight Forwarders (NAGAFF), Chief Uche Increase, during a one-day stakeholders collaborations titled ‘stakeholders collaboration as a tool for zero substandard products’ held in Kaduna recently.

    “The role of SON in preventing substandard products is crucial. We need them to stop the influx of fake and substandard product,” adding that “the association would sustain its enlightenment and sensitisation campaign to ensure the drastic reduction of substandard products in the country.”.

    The Director General of (SON), Osita Aboloma, emphasised that the organisation will not rest on its oars in ridding Nigeria of substandard products, while calling on all stakeholders to support them in achieving same.

    According to him, the organisation is enforcing compliance, through various standards like MANCAP, SONCAP and other logos on products to let customers know the difference between substandard and counterfeit products and the original.

    Represented by SON’s Regional Coordinator North West, Alhaji Abubakar Abba (Galajen Bauchi), he cautioned Nigerians against endangering themselves and loved ones by patronising fake or substandard products.

    Increase further warned that compromise by bank officials portends serious danger as it relates to imports.

    He also called on SON to lend support to Nigerian Shippers Council in reducing substandard products or cargo through CTN while urging the FG to speed up implementation of Single Windows Facility, whereby all agencies of government and SON can sit in their offices and make inputs. “SON is expected to do more and ensure synergy with other agencies, especially the Nigerian Customs.”

    In another paper presentation, National Vice President, ANLCA, Dr. Kayode Collins Farinto, said that as patriotic citizens, all Nigerians are compelled to collaborate with SON to stamp out substandard products from the country.

    “Please be informed that the hazard/adverse effect of substandard goods on our economy, health cannot be quantified, let alone, the high number of our citizens that have been killed, maimed as a result of use of these products. We shall be playing our roles in national interest, if we all agree to collaborate as stakeholders to stamp out substandard goods in our economy,” he said.

    Meanwhile, the regulatory agency has also cautioned consumers against low gauge and galvanised roofing sheets even as it embarks on a nationwide evacuation.

    Last weekend, SON stormed Uyo, Akwa Ibom State, and Lagos to seize substandard aluminium sheets worth over N200 million from three aluminium companies. In Lagos, it confiscated substandard galvanised sheets worth over N150 million from many companies.

    The Director General, SON, Osita Aboloma, said that the organisation worked on intelligence gathering to locate the three ware houses stocked with low gauges of aluminium products.

    Aboloma, who was represented by the Inspectorate and Compliance Director of the regulatory agency, Mr Obiora Manafa, said they have discovered that most of the unscrupulous dealers have relocated to remote areas to carry out their nefarious activities.

    Aboloma said that all the aluminium coils were tested and failed the basic minimum standards.

    In his words: “These aluminium coils failed the basic parameters and they are hereby seized so it can serve as deterrent to those that will want to engage in the importation of substandard products into the country and to save the hard earned resources of Nigerians.”

    He said that the ongoing exercise would be carried out in every part of country and warned the perpetrators to desist from the practice. He explained that the minimum standard required of an aluminium was 0.40mm instead of 0.25mm, which some companies use for the production of roofing sheets.

    “Once you buy it, any little wind will blow your roof off. These are the reasons we are trying to discourage Nigerians from importing substandard products. People go out there, import these products knowing full well that Nigerian standard is 0.40millilitre yet they bring it in,” he said.

    Reacting to questions on why the product was not stopped at the port of entry, he regretted that SON was not fully at the port to inspect the quality of goods that come in. He noted that SON was only invited sparely to do examination of goods saying that such development have seriously affected the role of the agency in checking influx of goods into the country.

    SON boss stated further that the roofing sheets were either smuggled in or cleared from the ports without SON quality verification, necessitating the need to track them to three different company premises in Uyo, Akwa Ibom State. This was facilitated by classified information provided by concerned stakeholders, he said.

    “There are a lot of negative consequences having such aluminium roofing sheets in the Nigerian  markets. Government is denied legitimate revenue, consumers do not get value for money, plus the unfair competition with certified made-in-Nigeria aluminium roofing sheets through low pricing. This unfair competition leads to low capacity utilisation by the local manufacturers, loss of jobs by Nigerians and a general downturn in the nation’s economy,” Manafa stated.

  • Stakeholders examine parents’ roles in child upbringing

    Parents within Agege, Alimosgho and Ifako-Ijaiye axis were treated to sumptuous celebrations penultimate Thursday during this year’s United Nations World Parents’ Day.

    The event was held at the Agege Stadium.

    Parents from Agege, Alimosgho and Ifako-Ijaiye which make up the Education District 1 were decked in their green ankara with yellowish stripes They participated in series of games and march past after which winners were rewarded.

    However, the climax of the exercise was a novelty match between the Agege and Ifako-Ijaye teams. The novelty match was a rib-tickling encounter which resulted in the spectators laughing to no end. The men with their protuberant bellies sauntered across the pitch as the teams struggled to outdo the other.

    However, most significant of the event was the pep talk on how parents could build a happy home and ensure that their children do not become social miscreants in future. The pep talk was delivered by Olayinka Egbeyemi, a Chief Superintendent of Police (CSP).

    Egbeyemi was also accompanied to the event by the Head of Marketing and School Waste Lagos State Waste Management Authority (LAWMA), Mrs. Mojisola Adeleye as well as the Head Child Protection of Lagos State Ministry of Youth, Modupeola Adebambo, among others.

    In his address whose theme was “Endurance”, Egbeyemi traced a surge in criminality and cultism to parents’ inability to manage crises, which, according to him, often lead to divorce and render children who are products of such unions miserable.

    “Nowadays, there is a high rate of divorce in our society. I often put the blame on couples who cannot manage their differences. So, when matrimonial crisis ends in divorce, the parents scatter while children of such marriages end up in the hands of cousins, uncles or aunts who often engage them in street trading or other forms of maltreatment. From there, they begin to identify with fellow touts on the streets where they start learning bad attitude,” he said.

    According to him, lack of endurance is at the heart of broken homes or youths’ cravings for cultism or other forms of criminality. Egbeyemi said professional experience revealed that most young men or women that go into cultism suffer foundation problems from parents.

    He identified curiosity, greed and ignorance as key factors to which unsuspecting youths are lured into cultism. So, stave off such development. He admonished parents to conceive only children they are capable of taking care of.

    “I want to appeal to our parents not to bear children they cannot take care of.. As parents, we have both constitutional and legal responsibilities to live up to these children’s expectations. “Once we have brought them into this world but failed as parents, we have exposed them to negative tendencies and we have an account to render before God on their behalf.”

    Adebambo, who spoke on “Child Protection against Abuse”, reeled off abuses against children to include physical, emotional and sexual, as well as neglect. These, he said, are key factors that make children vulnerable to danger.

    According to her, findings revealed that lots of the aforementioned abuses are carried out by either parents or relations of the victims.

    Adebambo said less or no abuses on kids helps in boosting their morale and regain their self-confidence.

    “We suggest that instead of you applying dangerous weapons on the children or expose them to emotional abuse by insulting or cursing them, you can deny them the usual snacks you buy for them after breakfast or lunch as a form of punishment.

    “When you abuse a child emotionally, such child loses his or her self-confidence. It is a fact that there is a surge in suicide within the youth population nowadays; and this is attributable to low self-confidence. We need to inspire our kids towards greatness and tell them they have a future and they can make it,” she said.

    She advised parents to be open to their wards, have listening ears and also teach their female children how to avoid or escape sexual predators.

    In her contribution, Adeleye noted that Lagos State government is determined to ensure improved efforts towards maintaining a clean and healthy Lagos. She, therefore, urged parents to play their part in the campaign by exhibiting healthy lifestyles and disposing their wastes at appropriate points.

    Adeleye reminded parents of the fact that Private Sector Participation (PSP) operators have been reinstated, urging them to identify those close to their residences for waste disposal.

    Earlier, District 1 Tutor-General/Permanent Secretary, Dr. Olufolayimik Ayandele, said aside parents, the occasion was to also appreciate students that have made the district proud.

    “It is deeply gratifying for us to have a mutually beneficial relationship with you parents in preparing our students to embrace good conduct, relevant skills and essential value for the distinct knowledge necessary for global life.”