The Nation Newspaper

Tag: status

  • Pharmacists to Nigerians: check health status, stop stigmatisation

    Pharmaceutical Society of Nigeria (PSN) President, Ahmed I. Yakasai, has urged Nigerians to check their health status, stop stigmatisation against HIV/AIDS patients and show love to  them.

    Yakasai stated this at this year’s World AIDS Day.

    Quoting the UNAIDS, Yakassai said last year, Nigeria had 220,000 new HIV infections and 160,000 AIDS-related deaths.

    ‘’There were 3,200,000 people living with HIV in 2016, among which 30 percent were accessing antiretroviral therapy. Among pregnant women living with HIV, 32 percent were accessing treatment or prophylaxis to prevent transmission of HIV to children. An estimated 37,000 Children were newly infected with HIV due to mother-to child transmission. Among people living with HIV, approximately 24 percent had suppressed viral loads.

    “The Key populations most affected by HIV in Nigeria are: Sex workers, with an HIV prevalence of 14.4 percent; Gay men and other men who have sex with men, with an HIV prevalence of 23 percent and people who inject drugs, with an HIV prevalence 3.4 percent,” he added.

    Yakasai said everyone, regardless of who they are or where they live, has a right to health, which is also dependent on adequate sanitation and housing, nutritious food, healthy working conditions and access to justice.

    He said: “The right to health is the right of everyone to the enjoyment of the highest attainable standard of physical and mental health, as enshrined in the 1966 International Covenant on Economic, Social and Cultural Rights. This includes the right of everyone, including people living with and affected by HIV, to the prevention and treatment of ill health, to make decisions about one’s own health and to be treated with respect and dignity and without discrimination.”

    He explained that the #myrighttohealth campaign focused on the right to health, which explored the challenges people.

  • Self-governing status for Western Region: 60 years after

    Self-governing status for Western Region: 60 years after

    The British government granted self-governing status to the old Western Region on August 8, 1957.  Prior to that day, with the election of 1951, the Action Group, under the leadership of Chief Obafemi Awolowo had taken over the control of the Western Region government, with Chief Awolowo as Leader of Government Business. Between 1952 and 1957, the Action Group government had dramatically changed the fortunes of the region, with one landmark policy and action after another.

    With a laser beam focus on human development, education became a priority and the driving force of development for the new administration. It initiated a huge investment in Universal Free Primary Education, with adequate planning for its success, including the training of teachers, and subsequent avenues for the further education of the products of its products. The introduction of free primary education, with the implication that both rich and poor had a right to it, and the success of the plan for post-primary institutions to absorb its products, led to a phenomenal expansion of educational opportunities that ultimately paid off to the advantage of the region.

    The regional government took seriously the formal planning of the economy with an emphasis on agriculture and rural development and agriculture-based industries. From 1952 to 1957 when it attained self-governing status, the region had witnessed great returns on its meticulous planning, efficient bureaucracy, and effective leadership. Three years later, on the eve of Nigerian independence in 1960, Western Region had recorded enviable growth scoring a “First in Africa” record in some critical indices of social development.

    In sports, the region had completed the Liberty Stadium, an Olympic standard sports facility. In information and entertainment, it had established WNTV television station. It had championed the promotion of agriculture with the establishment of research farms, farmers’ cooperative societies, and farm settlements for young school leavers to practice modernised agriculture. It was obvious that the Western Region was ready for its industrial take-off.

    In a recent paper, (“The Awo Legacy and the Challenges of Political Leadership and governance in Present-Day Nigeria”), Professor Akin Mabogunje gave an insightful account of how the Awolowo government developed its regional cement industry. The Colonial Government controlled the exploitation of mineral resources. However, with the derivation principle of revenue allocation, 50% of the royalty that the federal government received was returned to the region in which minerals were exploited.

    The derivation principle encouraged regional governments to develop interest in the exploitation of minerals in their regions alongside the federal government. However, while the federal government had developed a cement factory in Nkalagu, Eastern Region in 1957, and had plans for another one in the North, it left the Western Region out of calculation. But the Awolowo-led administration took its fate in its hands, and with its own consultants, it soon discovered limestone at Ewekoro, where the region commissioned its cement industry in 1960. That was how true federalism worked.

    Professor Mabogunje compared that Colonial era constitution with the 1979 Second Republic Constitution which vested exclusive control of mineral exploitation in the Federal Government and required that licenses for prospecting be issued only by Federal Government. This requirement adversely affected the effort of the Bola Ige administration to develop Igbetti marbles for the economic benefit of the state.

    The situation has persisted since. Under the 1999 Constitution, Mines and Minerals are on the Exclusive Legislative List. Therefore, the federal government has exclusive powers and jurisdiction over all matters relating to mining and it pockets the taxes and royalties derived from mining with minimal incentives for individual States. What this does is deprive states of the use of minerals under their soil for the benefit of their citizens. In true federal democracies, even individual citizens have control over mineral resources, especially oil and gas under their land and are simply required to pay taxes on the proceed. For this reason, citizens of oil rich states such as Texas do not pay income tax.

    Between 1952 and 1960, Chief Awolowo and his team led the Western region government under a federal constitution which made the federal and regional governments co-equal partners. That constitution favored regions in revenue allocation with 50% of mining rent and royalty from Distributable Pool Account versus 20% to the Federal Government.

    It was that revenue formula, especially the percentage allocated to derivation that made the difference in the rapid development of the regions. Regions with visionary leaders, which was the case with the three regions, took advantage of the favorable revenue allocation formula. The pace of development in Western region between 1952 and 1960 can be attributed to both favorable revenue base and visionary leadership.

    However, contrary to the provision of 50% derivation in 1960, the 1999 Constitution provided that “the principle of derivation shall be constantly reflected in any approved formula as being not less than thirteen per cent (13%) of the revenue accruing to the Federation Account directly from any natural resources.

    The crash of revenue allocated to states on basis of derivation from 50% to 13% is responsible for the state of the states vis-à-vis the center. First, states do not have any incentive to develop the natural resources in their areas because they have no control over them. Second, a greater percentage of revenue from such exploitation now goes to the center. Third, as a result, the states are deprived of funds to cater for the development of their states and for the promotion the welfare of their citizens.

    It should be noted, however, that the reversal of the fortune of states in respect of revenue allocation from the federation account does not come with a reduction in their responsibilities. As successive military administrations from 1966 to 1999 and civil administrations from 1999 to date grabbed more revenue to the center, they also imposed additional fiscal responsibilities on the states. The Udoji Commission of 1974 recommended a unified salary structure for federal and state civil services. The federal government orders the payment of common minimum wage to workers throughout the country with no concern for differences in cost of living.

    The result is that state governments are unwittingly set up to fail, unless they are extraordinarily resourceful or fortunate to have a self-sustaining economy. Visionary leadership played a great role in the success of Chief Awolowo. But so did a true federal structure that ensured that he had the resources to achieve his visionary goals.

    Let us allow our imagination to run as wide as it can. If Chief Awolowo remained in Western region in 1959; if the military coup of 1966 did not take place; if the federal government remained truly federal with a revenue formula that allowed regions to compete healthily for development, where might the Western region be now?

    Of course, any number of events might have occurred that could break the scenario that those hypotheticals assume. More regions might have been created. Different leadership might have emerged for any number of reasons. But if the constitution had remained true to the original federal principle, the states/regions and the entire country would have seen more rapid and progressive development than has been the case. In the race to excel, states/regions would learn from one another for the benefit of their residents. That was certainly the case in the First Republic.

    The moral of the foregoing is simple. Advocates of restructuring are not power-hungry exploiters looking to impose their will on others. They have a sense of history which they witnessed as adults. This country once worked. This nation was once on a trajectory of fast growth and sustainable development. They witnessed peer nations with whom we started at independence zoom past us in the sprint of life. They are now dying to witness a transformation of the nation toward the realization of its full potential.

    True, even in the state of retarded growth to which the nation has been condemned by its present structure, some individuals are making it big. But it is also in their interest that they are not islands of filthy wealth in an ocean of abject poverty.

     

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  • ‘Knowing genotype status can save much headache’

    ‘Knowing genotype status can save much headache’

    Nigerians have been urged to know their genotype, so as to avoid consequences of marrying incompatible mates (carrier of sickle cell gene). National Director and Chief Executive Officer, Sickle Cell Foundation Nigeria (SCFN) Dr. Annette Akinsete gave this advice while speaking at the free testing and giving of drugs in celebration of the World Sickle Cell Day, held at Ijede Community in Ikorodu, Lagos State. The theme was: Giving for Living.

    Dr. Akinsete said Sickle cell disease is a group of disorders that affects haemoglobin, the molecule in red blood cells that delivers oxygen to cells throughout the body. People with this disorder have a typical haemoglobin molecule called haemoglobin S, which can distort red blood cells into a sickle, or crescent, shape. It is abbreviated as SC. Sickle cell anemia is an inherited form of anemia, a condition in which there is not enough healthy red blood cells to carry adequate oxygen throughout the body. ‘’Normally, red blood cells are flexible and round, moving easily through your blood vessels. In sickle cell anemia, the red blood cells become rigid and sticky and are shaped like sickles or crescent moons. These irregularly shaped cells can get stuck in small blood vessels, which can slow or block blood flow and oxygen to parts of the body.

    “There is no cure for most people with sickle cell anemia. However, treatments can relieve pain and help prevent further problems associated with sickle cell anemia. There are so many consequences when a SC gene carrying person marries another SC gene carrier; such include giving birth to SS carrying child. The financial burden, psychological and emotional travails involved in managing such are huge. It is good to avoid all that right from the beginning. The risk of inheriting sickle cell anemia comes down to genetics. For a baby to be born with sickle cell anemia, both parents must carry a sickle cell gene.”

    Dr Akinsete said: “The sickle cell gene is passed from generation to generation in a pattern of inheritance called autosomal recessive inheritance. This means that both the mother and the father must pass on the defective form of the gene for a child to be affected. If only one parent passes the sickle cell gene to the child, that child will have the sickle cell trait. With one normal haemoglobin gene and one defective form of the gene, people with the sickle cell trait make both normal haemoglobin and sickle cell haemoglobin. Their blood may contain some sickle cells, but they generally don’t experience symptoms. However, they are carriers of the disease, which means they can pass the defective gene on to their children. With each pregnancy, two people with sickle cell traits have: A 25 percent chance of having an unaffected child with normal haemoglobin, a 50 percent chance of having a child who also is a carrier and a 25 percent chance of having a child with sickle cell anemia.”

    She praised Multichoice Nigeria for boosting its operations and helping the foundation enhance knowledge,understanding, control and management of sickle cell disorder in Nigeria. “Multichoice Nigeria has been our solid partner for over a decade. Multichoice Nigeria has made our operations easy by partnering with us at all levels. They recently donated a brand new vehicle to the Foundation to ease logistics. Now, it’s quite easy to penetrate every nook and cranny of Lagos, demystifying the myths associated with this ailment. That is a big one for us because without a vehicle, there is a limit to how much impact we can make,” she said.

    Dr. Akinsete added: “We have made efforts to positively influence public perception through awareness. But the challenge has always been funding. This is an area Multichoice Nigeria has adopted. The company recently funded a TV awareness documentary on sickle cell anaemia and this had a wider impact as more and more people are aware of this issue.  The free drugs we give to our beneficiaries have been funded by Multichoice Nigeria. We are particularly grateful for their support and cooperation. They are our  partner and it is something we want to sustain.”

    Mrs. Waris Tosin, a beneficiary of the SCFN who spoke on behalf of the other beneficiaries of the free testing and drugs, commended Multichoice Nigeria for partnering with the Foundation in enhancing knowledge about sickle cell anaemia in Nigeria. “I was very excited when I heard that Ijede Community will be hosting this year’s workshop on sickle cell anaemia. I have learnt more about this syndrome. Again, it gladdens my heart seeing a lot of young children who will all benefit from the free testing and drugs provided by the Foundation through support from Multichoice. We hope this partnership is sustained in a way that more people can be guided as they make their choices with respect to marital decisions.”

    Public Relations Manager, Caroline Oghuma, who represented John Ugbe, Managing Director, Multichoice Nigeria, said the company is committed to improving the wellbeing of Nigerians by investing in worthy causes and also deploying its platform for social good. “We strive to create values in a way that will positively impact the lives of our people. We have been working with the Sickle Cell Foundation Nigeria for about 16 years, ensuring that more Nigerians become informed about this health disorder. More importantly, we recently donated a brand new vehicle to aid the operations of the Foundation. This, we believe, has eased some of the logistic challenges impeding the Foundation’s operations,” said Oghuma.

  • ‘How to build small brands up to global status’

    ‘How to build small brands up to global status’

    Some start-ups are scared of hearing the word branding when advised to engage it for their businesses.

    They think branding and positioning should only be explored by top brands, such as Coca Cola, MTN and others.

    In the words of the convener of Brand Forum and Chief Executive Officer, Thots ‘n’ Works, Mrs. Ogunleye Ayanfeoluwa, most of the start-ups demarket their services by “exchanging with clients poorly designed complementary cards that looks like a photocopied item.”

    These, according to her, are some of the orientations that make start-ups remain small players till they are run out of business  by smarter ones who understand branding.

    “But they fail to understand that small businesses too should brand and position for business growth to attract good customers,” says Ogunleye.

    However, with the recession trailing most big businesses, experts at a just-concluded Brandforum, a free enlightenment forum for SMEs, said this is the right time for small business owners to brand their products and service to attract big clients who need affordable services.

    At the forum, the Executive Director, Rainoil Limited, Godrey Ogbeche, who delivered the keynote address titled: “Start small, grow, big”, urged business owners not to be deterred by the state of the economy.

    “Most things grow big start small. Businesses like seeds have to endure a period of heat and harsh conditions in before they make head way and become big enterprises and conglomerates that people appreciate today.

    “Most of the advanced economies that we know of today are supported by hundreds of thousands of small businesses that employ more people and grow their countries’ GDP. So, be ready to start small now and grow big gradually,” Ogbeche advised.

    -Besides, Ogbeche noted that to attract the right clients, start-ups must have drive, passion, discipline, integrity, dedication and also understand relationship management skills.

    To start out small, she urged SMEs to be sure of their value proposition; get adequate knowledge about the products and services and the industry they operate in as well as avoid loans to finance their start-ups or assets.

    Drawing from her personal experience of starting Rainoil with her husband in 1994 with N300,000, Ogbeche stated that the first step to growing big for SMEs is strategic planning, just as she explained that each entrepreneur must decide what being big is for him or her.

    Also, Ogunleye urged SMEs to brace up in spite of the dwindling economy because it is their “finest hour” to compete and grow.

    Also, the Chief Executive Officer, Thistle Praxis Consulting, Ini Onuk, while fielding questions from the audience comprising business owners,  warned that each business owner must be ready to operate by principles of integrity in business dealings, adding that training staff is not an option even if many leave immediately after receiving advanced training from their employees.

    “For me, we sign a bond of about two years with any staff we are going to train. We can’t just train you and you leave. We have even trained others overseas in the past and they resigned immediately they returned from the training,” she said.

    At the public presentation of the  book written by Ogunleye titled: “What Mr Zack taught about Business and Life”, Onuk enjoined SMEs to buy the book as it contains many real life nuggets of running a business in Nigeria.

    Ogunleye also announced a branding makeover for three SMEs selected by her firm. She handed  them over to mentors who will help them grow.

  • Special status for Lagos right thing to do

    SIR: Lagos is presently experiencing such phenomenal population explosion that it is being projected to be the 3rd largest megacity in the world.   Many are of the view that despite the 10 million figure declared by the National Population Commission in the last census exercise, the city’s best possible population is 40 million.Whereas the annual population growth in the developing world is 3% and Nigeria’s is 2.7% that of Lagos stands at a stunning 8% and is likely to accelerate.

    The Lagos transformation project requires an enormous financial force to build and upgrade infrastructural facilities in the state in the next 15 years far beyond the capacity of the state government. This, then, is the significance of the call for the state to be accorded a special status by the Federal Government. Lagos, with over 138,000 workers (representing various ethnic groups) in its employment, apart from the Federal Government, remains the greatest employer of labour in the country. Ironically, many of the states in the country with lesser population and infrastructural needs receive same monthly federal allocation as Lagos.

    The special position of Lagos as the commercial nerve centre of Nigeria, and indeed West Africa, has its peculiar infrastructural challenges. Its sheer human density driven by an increasing population due to endless survival and economic driven immigration, its ports and waterways, its border with Benin Republic, its  high concentration of banks, industries, companies, and other commercial enterprises makes it a very complex state to govern. Being the lens through which the whole world views the country, granting a special status to Lagos remains the best possible way to drive Nigeria’s development as Lagos is the country’s most industrialized city with needs that align with its growth.

    No nation grows by treating the needs of its golden geese with discomfiture since the future growth of the country’s economy is tied to the development of Lagos which hosts over 85 per cent of Nigeria’s industrial hub, over 65 per cent of its financial nucleus and over 75 per cent of its active workforce. With each day, the population and needs of Lagos continue to increase to reflect this important role. As the economic capital of Nigeria, Lagos has been the first port of call for eager millions of youths from all parts of the country who long for means of survival from the uncertainties of a struggling economy like ours.

    Presently, it is obvious that the monthly allocation it receives from the Federation Account as well as its internally generated revenue is not enough to meet the developmental needs of the state. Regrettably, the Federal government’s inability to discharge its infrastructural responsibilities to Lagos, over the years, has further worsened the situation.

    When the FCT was moved from Lagos to Abuja, there was a subsisting agreement that the city would not be abandoned. Indeed, the Late General Murtala Mohammed acknowledged the onerous nature of the responsibility of leaving Lagos alone to deal with the burden of infrastructure the FG was leaving behind then, bearing in mind that if Lagos hadn’t been the federal capital, it probably would not have been having these problems.

    However, successive federal administrations have refused to take a cue from countries which relocated their national capitals without abandoning infrastructural development of the former capitals. It is now time for Nigeria to imitate Germany, Brazil, Malaysia, Australia and Tanzania, which, after relocating their capitals, did not hold back developmental programmes targeted at the former capitals

    Lagos State government, in the last fifteen years, has invested a huge amount of money on infrastructural development, especially construction of drainages, durable roads, beautification and restoration of parks to forestall the negative impact of flooding, erosion and other environmental hazards. However, these efforts are not enough for obvious reasons.

    Today, Lagos does about 9,000 metric tons of refuse daily, more than what the whole of Ghana is generating. The branch networks that some banks have in Lagos outstrip what they have in the whole country.  A recent study reveals that over twenty five thousand people from across the world move into Lagos for various reasons on a daily basis.  The number of heavy duty trucks and other vehicles that ply Lagos roads on a daily basis is quite alarming. Same goes for the number of pupils in its public schools as well as those that daily visit its hospitals. Consequently, the state spends more on infrastructural upgrading and provision of other basic life necessities than any state in the country.

    The need to accord Lagos a special status is a non-political project. It is the right thing to do!

     

    • Tayo Ogunbiyi, Ministry of Information and Strategy, Alausa, Ikeja, Lagos

  • Owerri: Restoring its clean and green status

    SIR: The duty of every government is to ensure that citizens’ safety and physiological needs are met and Imo State is not an exception. No right thinking government will allow the interest of few individuals to override the interest of the general public.

    This is why Imo State government has taken it as a duty to ensure that Owerri, the state capital is clean and the green status is restored. Every discerning Imolite would agree with me that Owerri, the state capital which was among the neatest cities in our country in the past has lost its clean and green taste. And if there’s a time we need to cooperate with the government to ensure that the status is restored, it is now.

    Imolites woke up to the news of the demolition of illegal structures early hours of last Monday in the state capital especially in places where such structures are obstructing traffic and it continued throughout the week. The development is already generating tension, tongues are waging in protest.

    I understand the pains of such demolition considering the high level of unemployment but of a truth, Owerri, lately has lost its glory; every available space is now a market, every crowded junction has been turned to a park for commercial bus drivers to carry passengers and an avenue for touts to generate revenue from buses. We may be looking at the plight of those affected, but we may never understand the security threats of such structures.

    Apart from the security threats, these illegal structures have contributed immensely in worsening traffic on our major roads and have turned our roads to mini markets for hawkers and a safe haven for beggars.

    For Owerri to be restored, some businesses, road side shops, itinerant traders, hawkers, beggars etc must give way on our major roads. This was how Aba started till it got to its present decrepit state and the former governor would never forget piles of criticisms and how unpopular the ruins in the commercial city of Aba reduced him to. Same people that resisted moves by the government in the demolition of illegal structures in Aba in the past were same people that used it against the former governor.

    If we don’t curb this menace now, the same indecorous critics of the governor who have turned the mouth piece of those affected would be same critics that will still be here to criticize him in future for not restoring Owerri’s clean and green taste.

    Change remains the only constant thing in life and it does not just come by shouting change or voting for change, change is a process, change requires sacrifice, some things must give way for change to come. Some may say why now? If not now, then when?

    The gains of demolishing such illegal structures far outweigh the pains.

    In as much as we want the best for our state, we also need to help our government to achieve such. The interest of few individuals should never be allowed to override the safety and well-being of the general public.

    • Joseph Chimezie,

    Owerri, Imo State.

  • Lagos inches towards cleanest city status

    Lagos inches towards cleanest city status

    Lagos State Governor, Baba-tunde Fashola has said that days when Lagos was dubbed the dirtiest city in the world were over; even as he called on the residents to generate more wastes to enable the government to recycle them for re-use.

    Noting that the period when the state was rated as one of the dirtiest cities has been in the trashcan of history, he expressed his happiness that the city has acquired a new reputation of being one the cleanest in the world.

    Governor Fashola spoke while inaugurating the first waste material recovery facility at Isheri/Igando Local Council Development Area.

    He said the current challenge in the state was how to generate more garbage to run the factory, adding that the first phase of the facility would recover solid waste materials, recycle them for re-use and conservation. With this, Governor Fashola said, Lagos has joined some countries that have the waste recovery facility.

    He said: ‘’Many countries of the world are recycling, the whole world is conserving. That is what we are signing on. We are joining the rest of the world by having this recovery facility to recycle our wastes and turn them into wealth.’’

    Governor Fashola said the expansion of the factory later in the year would usher in the next phase where even more garbage will be needed in order to produce heat for electricity generation.

    ‘’Lagos has moved from a state that could not manage refuse to a state that needs refuse,” he said, adding that the factory will service 130 compactor trucks a day when it begins operation in few months’ time.

    He assured that the establishment of the facility in the area would create employment for residents of Alimosho, Igando Housing Estate, the General Hospital and the School of Nursing. He added that the Chief Executive Officer of company had assured that the factory would start the next phase by December this year.

    This, the Governor said, implies that the residents of the area might enjoy regular electricity supply from next year.

    The governor revealed that the third phase of the project would consist of composting and production of fertiliser to maintain the lawns, parks and gardens and other green areas across the city, even as he noted that that the greening industry now employs over 100,000 people.

    Governor Fashola said: ‘’It is an industry that was not there eight years ago, just as the Association of Waste Managers wasn’t in existence 15years ago.

    So, we have opened new frontiers, creating new economies that were not there before.

    “But that is one of the benefits of the facility. Others include power generation; production of organic fertiliser and composting and development of renewable energy from solar panels not imported from China but made in Nigeria. This will enhance the environment.’’

    In his address, the Commissioner for the Environment, Mr. Tunji Bello said the establish-ment of the waste recovery facility was a demonstration of the state government’s resolve to foster clean, healthy and sustainable environment for the well-being of the citizens.

    Bello, who was represented by the Special Adviser to the Governor on the Environment, Dr. Taofeek Folami, commended the Lagos Waste Management Agency (LAWMA) and West African Energy for the laudable projects which he said would be a reference point in solid waste management in the country.

    He revealed that the MRF when fully operational “is expected to provide support to the manufacturing sector through the provision of waste off-takers such as plastics papers and metals, among others. This will lead to reduction in cost of production and generation of employment to our teeming youths’’.

    On his part, the Managing Director of LAWMA, Mr. Ola Oresanya said the completion of the MRF was a dream come true. He thanked Governor Fashola for his support at all the stages of the project. He also appreciated the co-operation of the host community that willingly offered their lands for the project.

    While giving a brief on the project, the Chief Executive Officer West Africa Energy Group, Mr. Paul O’ Calleaghen said the site of the facility used to be a burrow pit where piles of waste were dumped.

    O’ Calleaghen said: ‘’It is the mission of West Africa Energy and the Lagos State government that by 2020, the state will attain zero-waste status that will make Lagos the truly beautiful city that it is.’’

    Mr. O’ Calleaghen further said the facility, when fully operational, would process waste for more than 130 PSP trucks per day, adding that the staff strength rose from 120 to 350 personnel of skilled, semi-skilled and unskilled workers.

    Earlier in his message, the Group Managing Director, First City Monument Bank, Mr. Ladi Balogun said it was a great pride for the bank to be involved in the realisation of the project, saying the improvement of environment was a prerequisite for business to thrive and one of the reasons that informed the bank’s decision to support the project. He assured that FCMB ‘’is ready to support projects of this nature.’’

    The traditional ruler of Igando, the Onigando of Igando, Oba Tijani Gbadamosi pleaded with government to give priority attention to members of his community for employment.

  • NSE may delist five firms over listing status

    NSE may delist five firms over listing status

    The Nigerian Stock Exchange (NSE) may delist five firms for failing  to restructure their operations and improve their corporate governance.

    Reliable sources told The Nation that the Exchange would this month delist  five companies that have consistently failed best corporate governance practices stipulated in the post-listing requirements.

    The sources said the Exchange was irrevocably committed to the weeding out of companies with poor corporate governance, a reference to companies that have consistently failed to submit their periodic and annual operational and financial reports to the Exchange.

    The Exchange had in June this year issued a three-month notice of compulsory delisting to 24 companies. Out of the list, one company had fully complied with the NSE’s listing status while 14 companies had taken some steps to redress their situation.

    On October 14, the Exchange issued a one-month final delisting notice to nine companies that so far failed to regularise their listing status after the initial notice of compulsory delisting.

    The nine companies included Investment and Allied Insurance Plc, Pinnacle Point Group Plc, Afroil Plc, West African Glass Industry Plc, Nigeria Wire & Cable Plc, Starcomms Plc, Mtech Plc, Big Treat Plc and Jos International Breweries Plc.

    According to the October notice, the nine companies had failed to take any appropriate steps to regularize their listing status and were subsequently issued a one-month final delisting notice.

    Sources in the know however said some of the companies have reached out to the NSE after the final delisting notice with a view to avoid the impending delisting.

    The NSE confirmed to The Nation that four out of the nine companies have since taken some steps to regularise their listing status.

    According to the NSE, with the final notice of delisting, the Exchange will proceed with the delisting process for the remaining listed companies after the expiration of the month of this notice unless they take appropriate steps to effect compliance with their post listing obligations.

    The delisting from the official list of the NSE will foreclose trading of their shares on the Stock Exchange. However, their shares may be traded on the Over-the-Counter market.

    The Exchange stated that it would continue to engage companies that have taken steps towards regularizing their listing status with a view to bringing them into compliance with their post listing obligations.

    The initial list of 24 companies included Investment and Allied Insurance Plc, Goldlink Insurance, Pinnacle Point Group, Adswitch, Afroil, Rokana Industry, IPWA, West African Glass Industry, Nigeria Wire and Cable, Starcomms, Daar Communication, Mtech, Big Treat, G.Cappa, FTN Cocoa Processing, UTC Nigeria, Stockvis, Nigeria Sewing Machine, Jos International Breweries, Capital Oil and Golden Guinea.

    All the companies slated for delisting had been dormant and mostly at their nominal values. Companies, such as Big Treat, Starcomms, Capital Oil and Afroil have been subjects of regulatory investigations.

     

  • How acquisition of Mainstreet Bank will boost Skye Bank’s status

    How acquisition of Mainstreet Bank will boost Skye Bank’s status

    Ibrahim Apekhade Yusuf in this report takes a look at the economic fundamentals of Skye Bank Plc following its recent acquisition of the Mainstreet Bank, one of the nationalised banks owned by the Asset Management Corporation of Nigeria (AMCON).

    For good measure a lot is bound to change in the banking sector as economic and financial pundits see the current wave of mergers and acquisition in the country as the second round of consolidation especially as banks like Skye, which acquired Mainstreet Bank, has invariably attained the status of mega banks with solid capital base.

    Road to Mainstreet acquisition

    Between September 11, 2014 and now, the Asset Management Corporation of Nigeria (AMCON) announced names of the preferred bidders for two of its three banks penciled down for sale.

    On September 11, AMCON announced Heritage Bank Limited as the preferred bidder for Enterprise Bank, three weeks after, it named Skye Bank Plc as the preferred bidder for Mainstreet Bank Limited.

    Skye Bank, a leading tier 2 Bank in Nigeria, was among the eight banks recently designated as ‘Systemically Important Banks’, which reflects its industry leadership, strong market share, diverse location spread, and strong brand equity. AMCON, in a statement signed by its Head, Corporate Communications Strategy and Research, Mr. Kayode Lambo, announced Cedar One Investment Partners Limited as the first reserve bidder and Fidelity Bank Plc as the second reserve bidder for the acquisition of the entire issued and fully paid up ordinary shares of Mainstreet Bank Limited.

    The corporation explained that its board of directors had approved the transaction. It, however, pointed out that the completion of the transaction was subject to the fulfillment of the conditions precedent as stated in the Share Sale and Purchase Agreement (SPA) to be executed with Skye Bank as well as the receipt of all required regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

    However, within four days of the announcement of Skye Bank as the preferred bidder by AMCON, the bank effected payment of the mandatory 20 per cent before the expiry of the one-week given.  This was on October 9, the same day it signed the Share Sale and Purchase Agreement. And in a rare display of buoyancy, leadership and commitment to see the deal is properly closed, the bank again, on October 31 paid the 80 per cent balance to complete the takeover of Mainstreet with one week to the deadline given by AMCON.

    Implication for banking landscape

    In the view of analysts, the acquisition of Mainstreet Bank has launched Skye into the league of the top three banks in Nigeria and with very promising future. It is believed that the bank will leverage on the widespread of Mainstreet branch network to consolidate its calculated advancement thereby giving it a superior place in the league of Nigeria’s top three banks.

    According to Skye Bank, the acquisition will avail it of many benefits, including cost leadership, business optimisation, and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of over 450, across all the states of the Federation.

    Mainstreet Bank, then AfriBank used to be the fourth biggest bank, after First Bank, Union Bank and UBA.

    AMCON had announced Skye Bank as the preferred bidder for the acquisition of all its interest in Mainstreet Bank, representing the entire capital of the bridge bank. Skye Bank emerged the preferred bidder after a rigorous bidding exercise that spanned five months, with over 20 bidders contending.

    Reacting to the development, Skye Bank said the acquisition of Mainstreet Bank was part of its strategic plan for growth. Skye Bank emerged from the very successful merger and integration of five banks in 2006, following the first phase of the banking industry consolidation. The Bank intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and ultimately ramp up stakeholder value from the acquisition of Mainstreet Bank.

    The bank said the acquisition would help deepen its penetration of the South East and South South regions where it is currently less represented, explaining that out of Mainstreet Bank’s 201 branches and nine subsidiaries, 26 per cent or 54 branches are located in the two regions.

    “These two regions also accounted for 28 per cent of Mainstreet Bank’s over 1.9 million customers, second only to Lagos with 37 per cent. This clearly shows that the integration of Mainstreet Bank will enable us make valuable in-roads into these two regions without the need to incur huge expenditure had we remained a single entity as Skye Bank”, the top lender explained.

    Besides, Skye Bank explained that the acquisition would bring valuable synergies from the mutual focus areas of commercial and retail banking of the two entities in a larger Skye Bank. The bank noted that its focus is on retail and commercial banking, which is also the main focus areas of Mainstreet Bank Limited.

    A flip through Mainstreet Bank Limited’s 2013 audited results, put retail and commercial banking contribution at 78 per cent, 36 percent, and 18 per cent of total deposits, total loans and profit before tax. Also, Mainstreet’s savings and demand deposits accounted for 21 per cent and 43 per cent of deposit mix, which also demonstrated its focus on these two segments.

    Mainstreet Bank, according to insiders to the deal, has a large pool of very loyal institutional and corporate customers, in spite of its status as an AMCON-owned bank, ascribing customer loyalty to the existence of Mainstreet’s current 1.9 million customers, a little less than the pre-AMCON takeover figures.

    Skye Bank’s fundamentals

    Skye Bank Plc has announced its Third Quarter result with moderate growth in some performance indices. It recorded a Profit before tax of N12.3billion during the period which represents a quarter on quarter growth of 33 per cent%.

    With gross earnings of N97.1billion, the bank was able to reduce its interest expense by 15 per cent Year on year to close at N30.3billion compared to N35.7billion as at September 2013. This is in line with its operational strategy of increasing the volume of low cost funds in its deposit portfolio.

    The Bank closed with a year-to-date net loans and advances balance of N576billion showing a 6% increase Year on year. Similarly, customer deposits grew to N801.7billion as against N726.8billion of the previous year while asset size remained strong at N1.1trillion with a 3 per cent year-on-year growth.

    The bank said barring any unforeseen circumstances, the growth pattern would be improved on in the remaining period of the financial year.

    “Our loan impairment charge increased by 62 per cent Year on year to N7.5billion, being a deliberate policy of aggressive provisioning early in the year to enable a fairly sustained position and avoid high concentration in the last quarter of the year. Non-interest income improved by 15 per cent YoY to N17.6billion compared to N15.2billion of the corresponding period in 2013.”

    To analysts, combining Mainstreet Bank numerous branches with Skye Bank’ the new status may sure give First Bank, Zenith and GT Bank a run for their money.

    Skye Bank parades Sterling management team. As if they knew they would go this big, there has been continuous restructuring in the last few months, including a new Managing Director/Chief Executive, Mr. Timothy Oguntayo, with futuristic outlook working with people of equal strength.

  • Ebola-free status: ‘It’s great that we’re able to achieve what even the US has started copying’

    Ebola-free status: ‘It’s great that we’re able to achieve what even the US has started copying’

    There is more to Capt. Shehu Usman Iyal than his official designation as Senior Special Assistant to the President on Aviation. Iyal is a major player in a sector that is critical to the Transformation Agenda of President Goodluck Jonathan. In this interview with a select group of reporters in Abuja, he stresses that every aspect of the aviation sector in Nigeria is already within global standard range. Deputy Editor, YOMI ODUNUGA and Correspondents, AUSTINE EHIKIOYA and FAITH YAHAYA, were there. Excerpts:

    For some reasons, the Aviation sector has been in the news in recent times mostly for the wrong reasons. What really is there to celebrate in such a sector?

    First, let me say that every aspect of human endeavours is bound to face some challenges at one point or the other. In that wise, the Nigerian Aviation sector is not an exception. Having said that, let me, as a form of general introduction, highlight the positive impact and achievements made under the tenure of His Excellency, President Goodluck Jonathan, in the last six years.  We all know that aviation is a very special vehicle for attracting and sustaining investments in every part of the world. If we look at the United Arab Emirates and some other countries, these countries have fully maximised the derivable benefits from that sector to get to where they are today. In Nigeria today, we should be proud of what we have and the improvements made in that sector. For example, we have just sustained and retained our Category One status which we got from the Federal Aviation Administration of United States of America. We got it in 2010 and, just last month, we were able to retain that status. It would interest you to know that India, which is one of the top 10 economies in the world, just lost its own Category One status but Nigeria is able to retain its own.

    As Nigerians, we should also make conscious effort to celebrate our own citizens who get international recognition through a dint of hard work. One of such is Dr. Olumuyiwa Aliu who is the first African to be elected as President of the International Civil Aviation Organisation (ICAO) Council. The position really puts us at the top position in the world. Nigeria, today, boasts of the total radar coverage of the entire country called TRACON. Although, the project started some years ago but the completion of the TRACON by the Nigerian Airspace Management Agency (NAMA) was realised under the leadership of Jonathan.

    What this means is that, anywhere within the Nigerian airspace, we are able to track any aeroplane that is flying in or out of the airspace of Nigeria. On the Category One attainment, when the Americans give you, they don’t go to sleep, they keep on coming to audit you, examine and monitor you. We were able to attain it during Jonathan’s administration and retain it.

    There is also an improvement of oversight capability because NCAA as it is called is the regulator, it is the policeman of the aviation industry, it tells you what to do, it monitors , corrects. So, it is the duty of NCAA to make sure that we are compliant and we do as we are expected to do by ICAO standard practice. So, the NCAA was able to promulgate the Nigeria Civil Aviation Regulation 1 and 2 and it met the ICAO standard, we call it NCAR 1 and 2 and it has been passed into law.

    Beyond these technical details, what exactly has the government done in other aspects to make flying a comfortable experience for Nigerians and others? For example, how conducive are our airports and can we say the passengers get satisfaction for their money?

    As far as this administration is concerned, safety is key and safety is everything. That is why no single aspect of the aviation sector should be ignored. Take, for example, the role the Aviation sector played in the fight against Ebola. Today, the World Health Organisation (WHO) has declared Nigeria Ebola-free and one shouldn’t underestimate the role played by the sector. Officials of the relevant agencies still play the role of monitoring movements of passengers till now. I was in Lagos some days ago and I was checked in about four or five places before I boarded my flight, I think we should commend ourselves that we were able to achieve something that even the United States of America has started copying. The same thing is done in London Heathrow. This administration has also been able to effect changes for those who are in the domestic operation. The issue of waivers for airline operators of custom duties on aeroplanes and aeroplanes spare parts. I think that has gone a long way in making the operators a bit more comfortable.

    As part of the administration’s desire to change the aesthetics of the airports and bring them up to the international standards, it embarked on a comprehensive remodelling of our airports and the conception of new airports. We can see the visible impact of this as we travel across the country from Lagos to Enugu, Port Harcourt, Kano and other states. In the last six years, there has been an appreciable increase in the number of airlines flying into the country. There is also an increment in the number of domestic operators. We have Azman, Discovery, First Nation, Medview and Peace Airlines, which just got their AoC; I think that is something we should be proud of as Nigerians and it has made life much easier for us. Under this same administration, we have new airports in Akwa Ibom, Dutse, Kebbi, Bauchi, Asaba, Gombe and a few other states.

    But there are airports that are yet to benefit from this remodelling initiative of the administration. Why is there any ulterior motive for this?

    No, no one should read any ulterior or political meaning to that initiative aimed at repositioning all the airports in the country. Let me also say that the remodelling of airports is a continuous process. As I talk to you now, the Federal Airports Authority of Nigeria (FAAN) is remodelling the airports in Abuja, Lagos, Benin, Yola, Owerri, Enugu, Jos, Kaduna and Port Harcourt. Again, in this period of insecurity in the world, the government of President Jonathan has also given a lot of attention to the safety of travellers by installing modern equipment for the screening of passengers. The government, through the relevant agencies, installed body scanners at the airports in addition to passengers and staff profiling. There is also the construction of new terminals in states like Lagos, Abuja, Port Harcourt, Kano and Enugu. FAAN has also taken over newly constructed airports that were previously owned by the states. For example, Gombe is an international airport and it is able to do Hajj flight.

    Presently, we are able to airlift Nigerian pilgrims from Dutse in Jigawa, from Bauchi state, from Kebbi state and Enugu which has been upgraded to an international airport. With this development, the stress and hustle we used to face in taking and bringing pilgrims in and out of the holy land is over because we now have more carriers and also carriers with capacity and our carriers are being sought for all over the world to do additional flights in West Africa. MaxAir, Kabo, Medview and they all have what we call white bodied aircraft; white bodied aircraft means any airplane that can carry more than 300 passengers and we have them and even in excess capacity. All the opportunities that we are enjoying now were made possible within the last six years of Jonathan’s administration. Already, we have brought quite a number of our pilgrims contrary to what we used to do before.

    There is also the infrastructural rehabilitation of the airports. We have the perimeter fencing in Lagos, Abuja, and Kano and the resurfacing of the runway. There was a little bit of discomfort some few months ago when we were resurfacing Abuja airport but it is better to be safe to land than to have a runway that has potholes that can affect the aeroplanes. FAAN, I must note, has gone beyond just infrastructure maintenance or rehabilitation. Under this administration, it has procured a lot of fire fighting equipment while also embarking on the training and retraining of personnel that can handle the equipment. There is also an establishment in FAAN called the Safety Audit Department, which looks into all these things to make sure that they are compliant with the International Civil Aviation (ICAO) standard.

    Has the government taken any concrete step to ensure discipline in that sector, especially by the staff of all the agencies?

    Aside the statutory responsibilities of the Safety Audit Department, there is what I can call a ministerial intervention. The latest of such is the directive by the Hon. Minister, Osita Chidoka, a dynamic young man with a lot of vision, that, henceforth, every airport manager will be held responsible for the happenings, activities, improvement and anything that happens within his airport. I think this will certainly improve performance and accountability and at the end of the day, Nigerians and indeed the travelling public will be the beneficiaries of this.

    Some critics have said that the Aviation Intervention Fund disbursed by this administration did not yield the expected results, as most airlines that collected the money did not utilise it well. What can you say about this?

    I do not believe that is true. Let us look at the bigger picture instead of dwelling on one or two beneficiaries that misapplied the funds. Of course, the relevant agencies are looking into the application of the fund by the concerned airlines. What I know is that, that fund yielded results as most of those that applied for it did make good use of it. Most of the airlines are still flying today due to that fund which came at the right time. In all, a total of N87billion was disbursed under the administration of President Goodluck Jonathan to the various airlines. The fund was disbursed at a generous rate of between two per cent to seven per cent as against the 18 per cent to 20 per cent that was the going market rate at that time. There was also a moratorium of six months with extended repayment term of between 10 and 15 years. You should also note that it was unprecedented in the history of the sector that some of the airlines were granted a working capital of between N500million and N1billion, which represents 20 per cent of their previous year’s turnover. We should be able to commend the President for this decision as it helped in stabilising the sector.

    Do you think the nation is lagging behind in harnessing of cargo potentials?

    Not really. The administration is rising up to that challenge. We are now constructing agriculture and cargo terminals whereby the products of the farmers can be easily moved to where they are going to be sold.  These airports are being constructed in Lagos, Makurdi and Jos and some of them have reached very advanced stages of completion, which is a very good thing for the agricultural sector. It will also boost the creation of jobs for Nigerian farmers and other people associated with it.

    Could you tell us what the Nigerian Airspace Management Agency brings to the table in the transformation going on in the sector?

    Currently, NAMA has the automated Aeronautical Information System (AIS) and it has also complied with WGS84; it is a satellite-based navigation. With this, there will be efficiency, safety and it reduces cost for the operators. We also have brand new Control Towers, which were also called the Safe Tower Project and here, we have the automatic data recording to capture communications between the tower and the aeroplane and also, if there is low level wind shear, it can be detected and the control tower can advise the pilot to avert eventualities. I am saying all these because if we don’t blow our trumpet, somebody will not only blow his own, but he will also take away our trumpet just to blow his own. The air traffic management of NAMA is as good as anywhere in the world because it is of international standard. Some six months ago or so, I was in Cairo, Egypt and they have what they call training school where people from all over the world are undergoing training and the Egypt Air people were kind enough to take me to the school to see some Nigerians. There were about 15 to 20 Nigerians and the three best students they had in that class were from Nigeria and that is why I said there is an aggressive manpower development.

    Again, we are part of the world and we are able to introduce what is called Standard Instrument Departure and Standard Terminal Arrival that goes to improve the safety and efficiency. We also have Nigeria Meteorological Services (NIMET) and they do the installation of the low level wind shear and land system. NIMET received certification as aeronautical meteorological service provider and got its International Standard Organisation ISO9001 by an ICAO accredited auditor. The construction of the National Weather Forecast Centre and research centre in Abuja is going on. Part of it is functional and we have highly improved weather forecast and prediction by the agency. In March this year, they did weather prediction and to a reasonable extent, their predictions and forecast were helpful to us and their service is not only for the aviation industry but also to the farmers, marine industry but their main attachment is aeronautical. They are also doing aggressive training for Nigerians.

    The Nigeria College of Aviation Technology (NCAT), which most of us are products of; today unlike what it used to be some years ago when it was moribund and almost dead, has been totally rehabilitated and overhauled. Today, the school has two helicopters and it is commencing training in helicopter pilot; with this, we will be able to create more jobs, we will be able to do more things at home and we will save money that we would have used to send our people outside to do the training. They have introduced the HND programme. When you pass out, you will have a Higher National Diploma (HND) and that will go a long way in case you decide not to even go into the field, if you want to go into the academics, it will help. They train pilots, engineers and air traffic controllers, cabin crew and dispatchers, aviation managers, airline transport license; I think we are starting that of aeronautical information officers. Additionally, under the presidential youth development programme, the office of the Special Adviser to the President on Niger Delta, Honourable Kingsley Kuku, has trained 66 pilots and 61 engineers. Some of the pilots have undergone Advanced Commercial Pilot Training on instrumental flying and already employed, while others are at various stages of advanced training. Most of the engineers are rated on engine and frames and have equally been gainfully employed.

    The Nigerian Air Force, in collaboration with private investors, has also under the present regime initiated and set up a pilot training school in Enugu for both civil and military helicopter pilots. There is also another flying school in Ilorin, Kwara State, that is equally graduating pilots and all these were achieved within the past six years of this regime. So, you can see that President Jonathan has provided all the support and enablement to transform the sector for good. Also, the Accident Investigation Bureau (AIB) has, for the first time under the watch of President Jonathan, released its findings to the public so that we all will know what happens and why it happened. AIB has a simulator in Abuja that is able to process, download and analyse flight data recorders; so, that saves time and money. They are also able to proactively simulate what would have been an accident or a very serious incident and we all know how aviation accidents can be. In summary, I make bold to say that, in the last six years, the aviation industry under the guide of President Jonathan has moved very positively. We have attained a status that is world standard and that we need to be proud of. We are in a position today to beat our chest as Nigerians to say yes; we are getting there.

    What is keeping the Federal Government from announcing the national carrier for the country or have they decided not to embark on having it again?

    On the national carrier, the minister spoke about it and I think he is taking it very seriously. He is in the best position to shed light on the national carrier.

    Can you update us on the second runway in our airport?

    The President has approved and directed the second runway project to be immediately revisited. It is being revisited and I am proud to inform you that I am part of the committee on the second runway and it is going to be treated as a priority. There will be a second runway in Abuja for safety, for security and efficiency. When a president gives an order, it shows that it is very soon and we are working on it. I can assure you of the commitment of the President on that project.