Tag: Wanted

  • Wanted: brand new Palm Avenue

    Hardball must congratulate — and empathize with — the Mushin Local Government Area, in its clearly un-winnable war, to make Palm Avenue, Mushin, Lagos, more motorable — and for good reasons too!

    Palm Avenue hosts the council’s secretariat, aside from one of its prime health facilities.  If Mushin, the council, derives its name from Mushin, the prime market, then Palm Avenue is well and truly its high mart.

    From the Agege Motor Road junction, adjoining and spilling into Palm Avenue, is the multi-billion Naira Amu plywood and glass market.  Down the road, just past the Ladipo Street, roundabout, is the no less valuable auto tyre and accessories market.

    Add all that to the bifurcating auto spare parts and allied market, the rash of banks nibbling for nourishment in the Palm Avenue, Ladipo Street and Fatai Atere Way business district cum industrial park, not to talk of hundreds of auto artisans that sprawl through the entire stretch of Papa Ajao, Ladipo and Palm Avenue itself, and it’s easy to conclude that Palm Avenue is Mushin’s commercial high hub and headquarters — formal and informal.

    So, you can’t really blame the Mushin council for its endless efforts to give Palm Avenue a facelift, via the near-eternal renovation.  Indeed, Hardball had had cause to chastise the local government for craters, that could virtually have swallowed its secretariat (never mind the hyperbole!) right in front of its prime office! (Palm Avenue: healing sore of a council, Hardball, 28 August 2017).

    Since then — more than one year ago — the council had patched the road and filled the craters, doing so, all through the whole stretch of the high street.  But lo, the rains came, and viola!  The craters staged triumphant comeback!

    But now, Hardball can happily report, the council is making another round of repairs. Already, the “gully” at the Palm Avenue-Mushin road T-junction is filled.  Also, the notorious set of craters, almost in front of the council secretariat, has been filled and re-tarred, such that driving on that section is uncharacteristically smooth.  Well done, folks!

    Still, as the next bout of rains would all-too-soon reveal:  working on that road is not unlike tacking, with needle and thread,  a starched but ragged shirt or garment.  It’s only a matter of time before it gets ripped — and even more ragged!

    What Palm Avenue needs, therefore, is a new road, complete with bigger and deeper drainage, to drain off, in no time, the after-rain flash flood — acidic waters that chew the tar like a maniac; and restore the hateful craters, before you can even bawl “Palm Avenue”!

    What Hardball thinks? The council should partner with the Lagos State government to birth a new Palm Avenue road, but not without its once-upon-a-time famous palms.

    Indeed, that deal should include replanting those famous palm trees to make the high street, a Palm-fronded boulevard, to re-green the area, and make it more environmental-friendly.

    It’s do-able — but after work is completed on the ongoing BRT corridor on Agege Motor Road, the Airport access road and the Agege Pen Cinema corridor.  Otherwise, it could be a another putative bottleneck, worsening Lagos’ already crippling traffic.

    Still, a new Palm Avenue is the panacea to save the Mushin Local Government from its Sisyphus-like frustration  — of returning to fix eternal craters, on a road it just splashed valuable scarce cash on, virtually just yesterday!

  • Wanted : A code of corporate governance

    Nigerian carriers are weighed down by lack of corporate governance – a factor stakeholders claim is responsible for the poor state of airline business in the country. Experts warn that unless urgent steps are taken by the industry regulator to curtail this lingering malaise, more domestic airlines will close shop soon, KELVIN OSA OKUNBOR reports.

    Despite its many attractions,  investment in the domestic aviation sector parades ugly statistics indicating low returns.

    The statistics from the Nigerian Civil Aviation Authority ( NCAA) supports this position.

    Checks with the NCAA revealed that about 42  domestic airlines have failed in Nigeria since commercial aviation started over 80 years ago.

    This unpleasant statistics makes Nigeria the country with the highest number of failed airlines in the world. Averagely, the country’s domestic airline has a life lifespan of 10 years before running into turbulent waters.

    A plethora of factors have been adduced for the high failure rate of airlines. Some of are unfriendly operating environment; unfriendly government policies; multiple taxation; poor business plans/models; poor financial models by investors and manager, among others.

    But besides these factors is poor corporate governance, which industry experts insist has remained one of the major factors responsible for the ‘burst  and boom circles‘ of many airlines.

    It was therefore instructive when eggheads in the industry and beyond converged for a colloquium organised in Lagos to chart a new way out for the aviation sector.

    The forum, organised by NigeriaTravelsMart.com, had as its theme: “Corporate Governance and Airline Industry Development in Nigeria.“

    The Chief Executive Officer of the firm, Mr. Simon Tumba, disclosed that the programme was put together to examine why domestic airlines have a short life span in the country.

    He said the forum was part of his contributions to deepening conversations on the challenges and growth of the aviation sector.

    Resource persons

    Experts at the gathering included the Managing Director of Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru; Vice President, Pricing and Revenue Management, Copa Airlines, Panama, Chris Amenechi; Chief Executive Officer, Ropeways Transport Limited, Captain Dapo Olumide; Chief Executive Officer, GDL, Kolawole Ayeye and Senior Partner, Aelex  Law Chambers, Lawrence Fubara Anga.

    The eggheads were unnanimous on the fact that without applying strict principles of corporate governance, the future of airline business in Nigeria hangs in the balance.

    Issues

    The forum discussed deployment of corporate governance principles, adoption of the latest technology, use of the right human capital and people. It agreed that proper understanding of right policies will fast track the industry growth

    Besides canvassing the right policy framework, participants said stakeholders buying in into what government should adopt for the growth of the sector remains a critical national assignment.

    AMCON’s position 

    Kuru, while describing  aviation as  a catalyst for economic development, said this could only happen if industry and operators apply global best practices in carrying out their operations.

    One of such practices, he said, is the entrenchment of corporate governance codes built on rules and practices that promote accountability, fairness  and transparency in stakeholders’ dealings and engagements.

    He said corporate governance  requires that there are checks and balances to entrench effective regulation to facilitate entrepreneurial and prudent management that could deliver long-term success for public interest.

    Kuru said: “Robust corporate governance ensures that the business is well managed , proprietor controlled , has a formal and balanced decision making framework with independent input.”

    He said the airline sector has peculiar characteristics such as huge capital outlay; low returns on investment;  poor capital size and structure;  poor reserves to replace major aircraft parts; limited access to leasing opportunities; regulatory changes and other macroeconomic factors which have made the business a nightmare.

    He said: Airline operators continue to complain of  lack of government support, huge burden of taxes, poor infrastructure and these have combined with shallow-rooted corporate governance principles to cause stunted growth and collapse of many airlines.”

    Kuru said many airlines collapsed because corporate governance principles were not applied  in the constitution of  boards.

    Kuru said: “Airlines fail when    the lifestyle of the owners supercedes payments to pilots and engineers. Funds  of the company are not separate from that of the owner.

    “When decisions to expand fleet are taken by an individual without deep analysis, the industry will continue to grapple with collapse owing largely to  lack of effective boards, weak regulations and lack of the courage to enforce compliance based on need to ensure effectiveness of airlines.”

    He proposed the professional scrutiny of cash flow of airlines; scrutiny of ownership and source of funding of prospective investors to confirm fitness.

    Other interventions 

    On his part, Amenechi said until operators adopt the right business, operational and funding models more airline will collapse.

    He said smart players would find the right models to remain in business.

    Amenechi said  merger or consolidation of airlines could change the narrative because existing operational models of carriers is not likely to keep more airlines afloat.

    He said  Nigerian carriers could be sustained if they have effective boards that could manage the business and at the same time balance  issues on external community and capitalistic interests to achieve organisational performance.

    According to him,  the  way to go, is to hire the right management with proper understanding of financial plan, growth strategy, deployment of information and regulatory strategies as well as capital strategy.

    Panel’s perspective 

    Olumide , Anga and  Ayeye, noted that besides corporate governance, the industry needed to examine critically, issues affecting airlines’ demarketing;  intrigues among operators ; use of wrong aircraft ; fare structure and absence of truth by industry players.

    In particular , Olumide said  that financial models of aircraft used by an airline could affect its costs of maintenance and its  effects on airlines’ survival.

    He said issues of inefficiencies in the management model by setting the right business plan ; on time performance and the consequence of flight delays are major  issues that contribute to airline failure.

    Olumide said: ”If consumer rights are pursued in line with extant regulatory requirements, airlines getting away with infractions in their operations will assume a different dimension. This brings to the fore the failings of the industry regulator, NCAA.“

    Legal perspective

    Anga, a senior advocate of Nigeria, said failure to apply the code of corporate governance remains a recurring challenge in the sector.

    He said this was due largely to poor entrepreneurial leadership.

    Anga said: “The essence of corporate governance across the spectrum of the industry is to expose poor economic regulation.

    “This has raised fundamental questions about capacity and capability of the NCAA. The industry regulator should lead the way in entrenching the code of corporate governance.

    Operating environment 

    Ayeye said something was fundamentally wrong with the operating environment as passenger traffic is not sustainable by the number of airlines.

    He canvassed peculiar legislation, regulation and principles that will accommodate efficient carriers and chase out inefficient operators. He said using regulation to create players for the aviation sector remains key.

    Ayeye said the revenue generation and distribution template is not healthy for existing carriers.

    He said: “We have to declare a state of emergency in the industry and the dysfunction in regulations, operations, policies should be examined exhaustively.”

    Recommendations 

    Participants resolved that  deeper consultation among stakeholders;  improved airport infrastructure and air navigation facilities as well as provision of   aircraft maintenance facilities and  leasing opportunities should be adequately addressed.

    They said the  adoption of global models by airlines will advance the drive to create strong and functional airlines, as well implementation of air treaties will go a long way to accelerate the growth and development of the industry.

  • Wanted: Value addition to drive industrialisation

    Nigeria’s population and resource endowment are key industrialisation drivers. But, the failure to add value to the abundant natural resources before export is undermining efforts at industrialisation, job and wealth creation. Now, there is a rethink in support of adding value to products before export. According to experts, the era of exporting natural resources in their raw state must give way to value addition, if the country must join the comity of industrialised nations. Assistant Editor OKWY IROEGBU-CHIKEZIE reports.

    It’s an undeniable fact: Nigeria has all it takes to join the club of industrialised nations. For instance, her estimated 200 million population and rich natural resource endowment place the nation in a vantage position to not only feed her population, but also export finished products and grow its economy through industrialisation.

    But, the inability to leverage value addition to transform the abundant natural resources into opportunities for jobs and wealth creation has continued to stand in the way. Most of the local raw materials are exported for processing and later imported back into the country as finished products, with the addition of certain additives at great cost.

    Indeed, despite boasting bountiful agricultural and mineral resources, most, if not all of Nigeria’s resources, are exported in raw form, without any value addition. The country does not process them from primary produce to secondary or intermediate products.

    The implication is that Nigeria loses the money that could have been made from locally-produced finished products. More importantly, she creates jobs for other countries’ nationals, while grappling with unsavoury socio-economic consequences of rising unemployment, particularly among graduates.

    But a new rethink in favour of value addition has taken the centre stage, with stakeholders and experts in diverse sectors insisting that Nigeria must produce, and, most importantly, add value to mineral and natural resources for export if the economy must prosper, create jobs and industrialise.

    Some of them argue that the era of exporting natural and mineral resources in their raw state is gone. To them, the time for bold, creative and strategic policies to encourage value addition to raw materials before export has come, considering the urgent need to take a greater percentage of the country’s population out of poverty.

    The Ghanaian President, Nana Addo Akufo-Addo, did not mince words when he said Nigeria should lead Africa’s industrialisation process. According to him, the country’s resources and population place it at a vantage position to grow the economy of the continent through industrialisation.

    Akufo-Addo, who was the guest speaker at the 46th Annual General Meeting (AGM) of the Manufacturers’ Association of Nigeria (MAN) held in Lagos, a fortnight ago, noted that Nigeria’s and, indeed, the continent’s biggest challenge was the inability to leverage value addition to transform the abundant natural resources into opportunities for the creation of jobs and wealth.

    The Ghanaian president, who was represented by a Senior Minister, Hon Yaw Osafo-Maafo, recalled a situation where his country and Cote D-Ivoire produced 60 per cent or more of world’s annual cocoa beans, but earned less than six per cent of the global value chain activities in the cocoa industry.

    He said: “Ghana and Cote D’Ivoire, with their collective production of 60 per cent of global cocoa beans, earned only about $6.0 billion in 2016, but the chocolate industry earned, at the same time, about $120 billion.”

    He criticised what he described as the lazy approach of African countries to always rush to the international market to sell their resources in their raw state rather than add value to them. He also harped on the need to ensure that the continent, under Nigeria’s leadership, has the capacity to support effective value addition to enhance its revenue position in the international market.

    According to Akufo-Addo, this calls for policy harmonisation, coordination, and effective collaboration between the public and private sectors to drive effective and time-tested industrial framework to fully utilise Africa’s natural resources.

    He urged the continent to begin to trade among ourselves, concentrating on areas of comparative advantage. According to him, the continent must begin to break the trade barriers among its member countries and form alliances with the various countries’ associations of industries and chambers of commerce.

    While noting that through such associations, the continent may get to know the needs of the various countries and where there are opportunities of trade, the Ghanaian leader said this strategy also has the capacity to boost the continent’s Gross Domestic Product (GDP).

    He said, for instance, Africa has a combined population of 1.3 billion  and a GDP of $2.2 trillion, while United States with a population of about 328 million has a  GDP of about $18.3 trillion. He regretted that Africa’s population is about four times that of the US yet, US’s GDP is about eight times that of Africa.

    Akufo-Addo made a case for stock-taking of the prevailing policy frameworks, while measuring them against the current industrialisation to determine if there is need to deepen the policy initiative.

    He also urged policy makers on the need for the right mix of policies to fully unearth and develop the entrepreneurial talents that abound in Nigeria in particular and on the continent generally.

    To further underscore the need for value addition, Akufo-Addo said “It is far better to leave our resources untapped till our future generations rise up to the challenge and conscientiously develop the best policy-mix that prioritises industrialisation as the most convenient cause to drive the much-needed socio-economic development.”

    He took a swipe on Nigeria and other African countries who spend a large portion of their budgets to buy goods and services to run the state, noting that if the appropriate policies are made, procurement policies of the state should favour local production to support the social sectors such as schools, hospitals, police, army, prisons, among others.

    “We need to stop this needless drive for importation and direct our attention to protecting local businesses. We must tailor our procurement laws to favour local production,” Akufo-Addo charged.

    He said: “For every cheap item we buy from outside Nigeria, Ghana or the continent as a whole, we must bear in mind that we are providing employment to other people outside our borders and denying our people the jobs to make a living and create wealth in dignity. Africa must procure prudently to protect itself and provide labour to its youth.”

    The Ghanaian leader explained that Africa could create the champions of entrepreneurs and business giants who could stand shoulder to shoulder with foreign businesses. “We have many examples of our own to celebrate like the Dangotes.

    “What we must never stop to do is to effectively ensure that both the private and public sectors continuously engage in productive dialogues and consultations to define what is good for our industrial sustainability and I believe this meeting will deepen that process,” he said.

    For the immediate past President of MAN, Dr. Frank Udemba Jacobs, there is the need for the government to speed up actions that would lead to the quick resolution of challenges facing manufacturers to reposition and further improve the sector’s performance, especially in  value addition.

    Jacobs stated that the theme of the AGM, Mainstreaming industrial policies to catalyse industrial renaissance, was borne out of the need to appraise the performance of industrial policy initiatives, with a view to ensuring that they are positively aligned to the nation’s industrial aspirations and overall economic development agenda.

    On the controversial African Continental Free Trade Area (AfCFTA) agreement, he reiterated that MAN was not against any agreement that will facilitate intra-African trade, particularly where Africans stand to benefit.

    Jacobs, however, said: “Our concerns were principally the inadequacy of private-sector stakeholders’ consultations and the absence of a credible country-specific study that should form the basis of our negotiation as a country.

    Other experts and stakeholders, who bared their minds on the need for Nigeria to champion the continent’s industrialisation drive through value addition, said this can be achieved through the use of appropriate technology, starting from evolving strategies to upgrade existing indigenous technology.

    They also recommended that the country should not ignore the role of Research and Development (R&D) in its drive for competitiveness through value addition. This, according to them, requires developing engineering, technical and vocational skills. Besides, for a poor nation like Nigeria, R&D efforts should focus on solving local problems in industries.

     

  • Wanted: Paradigm shift to grow tourism

    Major stakeholders in tourism have converged on Golden Tulip Hotel, Festac, Lagos for the third Tourism World International Conference to examine the role of commercial and agro-tourism entrepreneurship, Chinyere Elizabeth Okoroafor reports.

    For an all-inclusive tourism development and its sustainability, the yearly Tourism World International Commercial/Agro-Tourism conference gathered stakeholders in the industry to chart a new path.

    The third edition of the conference, which held penultimate Thursday, with the theme Turning insights into actions – The crucial role of commercial and agro-tourism entrepreneurship, provided solutions to major challenges facing tourism and agro-business growth in the country.

    Lagos State Commissioner for Tourism, Arts and Culture Mr. Steve Ayorinde, through his representative, Mr Omosanya Gbolahan, an Assistant Director in the ministry, said the ministry is interested in partnering practitioners and stakeholders in tourism, adding that the ministry appreciates the efforts and role of stakeholders in the sector.

    Ayorinde said the ministry encourages tourism fora, such as this, as it is strategic in bringing together players in the industry to share input.

    He said the role of the government is regulatory, as it is not expected to do the business of promoting and marketing. He added that the ministry uses various stakeholders and practitioners to promote some of the products that Lagos has, which is why the ministry wants to get closer to practitioners and stakeholders.

    “As a government, we want to get closer to you, generate a data and plan for your business development. For tourism, we partner practitioners to promote what they are doing. Some don’t know what we have in Lagos in terms of the assets and potential, but what we do is we use some of these platforms to educate them on what we have in Lagos. We support initiatives to grow small enterprises and make Lagos a preferred destination. It is not only about regulatory, if you have an idea, come to us. We are very open at the Ministry of Tourism, Arts and Culture,” he said.

    President LaCampagne Tropicana Resort, Lekki, Lagos, Ambassador Wale Akinboboye, who spoke on Continent building-Our Collective Responsibility, believes that Africans should tap from the resources they have and develop it for the benefit of its people.

    Akinboboye, represented byManager LaCampagne Tropicana, Mr. Oduoye Ayodeji, said: “Many Africans spend millions of dollars to travel outside the shores of Africa. Most of such could actually be channeled and used to develop the continent.You can travel outside the shores of Africa but don’t travel because you can’t make it in Africa. Africans should look into the challenges that Africans have and think of ways to solve them. In these challenges lie opportunities for people who can think and see to the future. No country in the world today can beat its chest and say that it doesn’t have challenges. The most important thing is what we are going to do to overcome those challenges and to better the lives of the citizens.”

    He urged Africans to embrace their culture and heritage by patronising her products and activities. He also noted that many Africans don’t believe that travelling to Ghana is actually an international travel.

    “We don’t really value our own, but when it is from the UK or US we put them first against our own. So, there must be a paradigm shift in the sense that we must be proud of who we are. Africans must be proud that they are Africans. Before now, the colonial masters actually took a concerted effort to remove from Africans the sense of pride in their culture and heritage by making us believe that we are second class and they made us subservient.

    “That’s why we see their own as primary and ours as secondary. And because of that African values and culture have been relegated to the back bench. We are not saying we should be doing the things we did in 1920s and so on, but there must be a concerted effort to improve ours and not forgetting the value that Africans have. We should be able to preserve that,” he said.

    Akinboboye urged stakeholders not to wait for government if they want to contribute to the growth of the sector, saying: ‘Start small, stay consistent and dream big’.

    Tourism World International Executive Director and convener of the conference, Mr Solomon Uwakwe, identified some opportunities in commercial or agro-tourism in Nigeria, urging them to begin to turn insights into action.

    He stated that tourism is wide and it is a purview through which other sections of tourism rotate such as restaurant, transportation, entertainment, hotel, leisure, cultural ware sales, among others.

    On agro-tourism, he said it is about food production and sight-seeing, adding that greenhouse and farmsteads are the new ways to go as far as agro-tourism is concerned. “Agro-tourism is the branch of tourism that has two good things in one; food production and sight-seeing. In the recent past,we found out that subsistent farming is no longer viable. In most villages, the soil can no longer give you the right produce and so what do you do? Our parents have been in the business of farming and they have little or nothing to show for it; so, we must move with time. It means that we should think of the kind of agriculture that we can invest in to give us food as well promote sight-seeing. That is why we talk about greenhouse and farmsteads,” he said.

    Uwakwe charged participants to take home what they learnt at the conference, saying: ‘’It will go a long way for us to contribute our quota to social economic development.’’ He noted that through such platforms stakeholders can alleviate poverty through such means.

    In his presentation tagged Entrepreneurship and economic empowerment, former Group Managing Director Access Bank Plc and an agricultural entrepreneur, Mr Obinna Nwosu said Nigerians should embrace entrepreneurship, not take chances and but rather take action in creating economic activities no matter how little without waiting for any government.

    According to him, Nigeria needs more people to be job creators while mind sets of Nigerian youths need to be changed from not believing that because they have an education, the next thing is to be employed by someone else.

    “It doesn’t have to be that way because education enhances your ability to get something done. So, it could as well be that your entrepreneurship has been enhanced. So education is not just to enhance your ability to take a job and take instructions and obey those instructions and collect a salary at the end of the month. The government has responsibility to provide jobs, but who is really suffering the effects of not having means of livelihood? The person has the highest duty to get into the issue in whichever way he can. There are so many opportunities that can get us money while we wait or look for bigger opportunities. Once there is an entrepreneurship, there is going to be one or two jobs following it,” he said.

    He observed that accessing fund in banks is not easy as there are no authentic ways of identifying people except that BVN is trying to address the situation. He added that although, if organisations or individuals are organised and transparent they are likely to attract funds without any collateral.

    “To attract finance you have to sell yourself as someone that could be trusted, whatever little thing you are doing organised it well. You can hire an accountant or you can keep good records of your sales and profits. This is the biggest issue about attracting finance. More than that, the reason you find security lending is for banks to see what to hold because there is no reliable way of identifying people and nobody actually have a unique identity that is tied to that person in Nigeria, but BVN is trying to address that.

    ‘’We need a comprehensive national identity. In the absence of that, banks want to see an immovable object that they can hold. This is the burden in the finance industry,” he said.

    Nwosu believed that there should be entrepreneur growth in agriculture sector because Africa has 60 per cent of the world’s uncultivated arable land and yet has a hungry population.  “If we want to be a nation that will stand on its own, we must be able to feed ourselves, provide much of the food and it might not be 100%. Decent nations produce 90 to 95 percent of their food because food security makes you less vulnerable to control by other nations. I believe that industry of focus should be agriculture, as it is like a mother industry. By the time you are succeeding in agriculture it normally gives birth to several other industries such as food processing, food packing, logistics, and exports etc.

    “Also, it can correct our balance of payment problems because much of what we even import that causes balance of payment problems and makes the dollar to rise and naira to fall, also much of it is food. So, if we grow food, that will gradually begin to correct the naira situation. The youth has to get involved,” he stressed.

    SAS Business Solutions Worldwide Managing Director, Supriya Sharma, who spoke on Sustainable domestic tourism development in Nigeria, said Nigerians should bring out the innate entrepreneurship in them, which doesn’t need to be developed for the sustenance of tourism potential, which lurk everywhere in the country.

    ‘’In Nigeria, you see a woman who is selling fruit carrying her wares on her head and her baby is striped at her back. I don’t know how much she earns in doing that, but it is not easy. It shows that entrepreneurship zeal is already there in Nigerians, it doesn’t need to be developed, please bring it out. The people already have it. If she could do that under the scorching sun and still face the hardship of life, then entrepreneurship is already within her. Nigerians will have full time employment and still have side businesses.’’

    She advised that tourism practitioners  should try to have authentic digital presence where travellers can access viable information about natural attraction sites in Nigeria as that could affect tourism patronage.

    Charles Mbindo, International Hospitality/Leisure networking expert, spoke about Hospitality and leisure: the synergy that works. He said there is a new travel application, which has changed the way people travel. It is called Blue Trip and practitioners could  tap into it, adding that the application is like Uber.

    On Significance of digital marketing in tourism and hospitality business, Rukevwe Adjekughele, Hospitality Digital Marketing Specialist and Consultant, said hospitality business owners should leverage building a sophisticated digital site for their business before other enhancement.   The conference also witnessed presentation of awards to Ayorinde for Tourism World Socio-economic and sustainable tourism development meritorious award.

    Others were Mr. Akinlabe Arowobusoye, Business Development Consultant (Infrastructure Development award), Chief Nnamdi Iroegbu, Group Managing Director and Chief Executive Officer Mavico Group of Companies Limited (Tourism World socioeconomic development and agribusiness meritorious award) and Oluwole Oyebade, Chairman, Wotting Group (Strategic investment in socioeconomic development and entrepreneurship promotion award).

  • Wanted: maritime data bank to halt N10b loss

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Dr Dakuku Peterside, has called for the establishment of Nigerian Maritime Data Bank (NMDB).

    A senior official in the Federal Ministry of Transport (FMoT), who craved anonymity, at the weekend, said the country loses over N10 billion yearly to inaccurate data in the maritime industry. The official said there was the need to bring integrity, transparency and accountability to bear on the operations of the maritime sector, hence the call for accurate data base for the sector.

    The FMoT official, who spoke with The Nation after the last week’s meeting between NIMASA and maritime reporters in Lagos, said there was need for the National Bureau of Statistics (NBS) to capture the contributions of the maritime sector in the Gross Domestic Product (GDP) to enable those who make use of the figures to grow the economy achieve better results.

    The FMoT official said it was time for the management of the NBS to address the question of publishing credible and up-to-date data to be consumed in the maritime sector.

    When established, NMDB, the official said, would be the first specialised data bank in the nation’s maritime industry.

    NMDB, according to the details of the project, will provide a high level of information services based on accurate, regular updates, efficient performance which leads to unlimited cost-effective information.

    Peterside, the official said, wants the NMDB to become the official information source approved by the government in the maritime transport field.

    The vision of the NMDB, according to him, include the following:

    It will provide all information needed for decision makers and people interested in the maritime transport industry through the NMDB website.

     

    Mission

    NMDB will enhance the performance of the Nigerian Maritime Transport Sector by providing all the accurate and certified information on time and with high quality to those working in the maritime industry using the latest information technology.

    Some of the objectives of the data bank, the FMoT official said, also include the following: NMDB will provide planners, decision-makers and researchers from various maritime fields with accurate information on all activities of the sector. It will enable foreign users to access the NMDB applications using the internet to benefit from the available services.

    It will also allow  connection with external and local entities in order to achieve the information integration concept.

    The ports subsystem, according to him, includes ship, cargo, container and passengers’ traffic as well as stevedoring and shipping lines performance among others.

    The bibliographic subsystems, according to him, also include the legislation regulating the nation’s maritime transport activities, researches and studies, selective dissemination, current awareness as well as the companies and entities operating within the maritime transport sector of the economy.

    NMDB services, according to him, are to:

    • provide informative and interactive services through NMDB official website to be created by the NBS;
    • develop various statistical reports, conducting specialised researches and economics studies; and
    • enable direct search in databases.

    Its periodicals and publications (multi lingual) would include: Statistical Yearbook: Analysed statistical and economical reports related to the country

    The FMoT official said there was need for stakeholders to support  the push for a single data window system of maritime activities so that data required will be available on a single platform, as a maritime data bank to foster the nation’s rapid economic growth.

    The dearth of credible maritime data, the official said, hinders transparency and accountability.

    “We are joining NIMASA to push for a single data window system in the maritime sector, whereby NIMASA, the Nigerian Ports Authority (NPA), Nigerian Shippers’ Council (NSC), Nigerian Customs Service (NCS) and other relevant government agencies in the sector will share a common platform for data on all vessels calling at our ports and the activities.

    “This will make it easy for the NBS to capture the contributions of the maritime sector to the GDP of the country and enable those who make use of the figures to grow the economy achieve tangible results,” he said.

    Other stakeholders said they supported the move by NIMASA to have a credible data bank for the industry.

    One of the stakeholders and a maritime lawyer, Mr Dipo Alaka, said the industry needed to be providing local and international organisations with credible data. He said the country needs to keep same for its own reference.

    He said: “It is sad we didn’t have data source on Nigerian maritime industry. I think as we plan to grow and diversify the economy, we should address the question of churning credible data to be consumed in-country’s maritime sector.

    “It is a pity that when students and stakeholders in the maritime industry or other operators are looking for data, the National Bureau of Statistics does not have the required  captured data about the maritime activities in the country.

    “Unfortunately, such concerns no longer seem an anomaly as the Nigerian maritime sector operates more or less in secrecy and obscurity. The dearth of data has remained a major challenge in accessing and  assessing the operations of the private terminal operators.

    “Indeed, for the entire gamut of the industry – from the time a vessel approaches our port to the time it berths to the time it starts discharging imports and moving the containers out of the port, exports and sales and the tonnage– the data value chain is unreliable and weakened, giving rise to lack of transparency and rabid corruption.”

    He said the lack of accurate data has made many to raise doubts on the accuracy of payments made by the terminal operators, importers, exporters and shipping companies to the government with respect to tax and royalty is an understatement.

    “There cannot be openness in darkness and that is why availability of data is important not only to aid planning and research, but also for transparency and containing impunity.

    “When there are gaps in essential information – as there are in the maritime sector– and the accuracy and validity of the data is widely questioned, it is easy to game such a system,’’ Alaka said.

     

  • Wanted: A successful, efficient rail sector

    With the Federal Government’s renewed commitment to the railway sub-sector, Nigeria is on a sure path to joining the rest of the world in the use of speed train cars, writes ADEIFE OLUKOLADE

    In April 30, 2014, at 1:54 p.m. eastern daylight time, 17 CSX Transportation (CSXT) tank cars of petroleum crude oil derailed in Lynchburg, Virginia United States (U.S.)

    Three of the derailed cars were partially submerged in the James River. One was breached and released about 29,868 gallons of crude oil into the river, some of which caught fire. No injuries to the public or crew were reported. At the time of the accident, it was cloudy and raining lightly; the temperature was 53°F (11.67 °C). The CSXT estimated the damages at $1.2million, not including environmental remediation.

    Using the railroad for transportation of people and goods has its advantages, especially when managed properly. However, it carries with it several risks, but when properly managed the railroad drives an economy that can deliver greatness and economic growth.

    The Nigerian government in the last couple of years has worked tirelessly on improving the railway sector, an effort that is gradually paying off, we have seen the emergence of the beautiful passenger rail projects and some proposed cargo rail tracks picking up pace.

    Many are of the opinion that with a working railway sector, there will be a decrease in the traffic gridlock caused by road haulage trucks, reduction in accidents caused by trailers, and hopefully avoidance of loss of lives.

    While these are good things to hope for, we must come to the understanding that a working rail system whether passenger or cargo depends on basic factors that will determine its success or failure.

    From the top story of 2014, which happened in United States, this was not the first accident of its kind and the impact was minimal when you consider the product transported, location and the time of the accident. A lot of factors had played part in the reduction of the impact.  Years of data collection on previous accidents that helped in designing the rail cars differently, good maintenance system and records, top notch emergency response that evacuated a whole community before exposure to the primary incident and secondary exposure.

    Also a community void of greed, what they thought of was safety for lives and property not rushing to the scene to scoop crude.  All these factors and many more contributed to the reduction in the impact of this accident.

    A similar incident happened on July 6, 2013, a freight train carrying crude oil travelled into Lac-Megantic, Quebec Canada. This train derailed downtown and exploded, killing 47 people. An investigation by the appropriate authorities identified many causes and contributory factors. Some are: maintenance  issues, inadequate training, failure to  set enough hand brakes and leaving train unattended (human error). Since this accident  new regulations were put in place to avoid a similar incident such as using reinforced cars to ship oil (the type used in the U.S incident above)

    As Nigeria advances it aspirations to develop the rail sector, we need to remember that most advanced nations are gradually moving from the old locomotive systems that had its faults and are using innovations to limit exposure thereby reducing accidents.

    First, the speed that trains travel are getting faster in this age of amazon fast delivery, drone technology  and drive through services, it will only make sense to start our rail system at the pace of the technology available in the world around us  if we want any economic dividend from the multi-billion projects. It may not be sufficient to only have the infrastructures, but infrastructures that add value to the generations to come.

    When we talk about advancement in technology, here is an example of a recent scenario from Chicago, Illinois U.S. A typical drive to O’Hare airport in Chicago could last one hour or more by road, this is a similar distance from Lekki Peninsula to Muritala Mohammed International Airport, Lagos, Nigeria. Currently, the Chicago Transit Authority, a public transportation agency,  advice people to travel by train and reduce the travel to about forty five minutes and you will be directly at the terminals. However, Elon Musk of the Boring Company proposed to build a tunnel to accommodate a fleet of self-guided, electromagnetically-propelled pods zipping between the Loop’s unused Block 37 “superstation” and the airport. Reaching speeds of 125-150 miles per hour, the system aims to make the trip in just 12 minutes.

    While the last example may be out of the imagination of some of readers the cost of the project may be the same with present day Nigerian projects and if we  cannot use pods to transport goods and people in Nigeria we should not settle for the worst diesel propelled locomotives.

    The key test of a transport system is its ability to deliver passengers or goods to their respective destination in as short a time as is reasonably possible, with due regards to issues of safety and quality of service.

    Therefore, for a successful rail project, with a desire to compete and be profitable, the type of infrastructures used will determine how far we can go literarily and figuratively.  How many times have we decided to buy a new computer instead of upgrading the memory, but with a failed rail project a new one will cost almost if not more as the initial cost, for the economic savvy professionals it makes absolute sense to do it right the first time.

  • Wanted: Apprenticeship to bridge skills gap, tackle unemployment

    Informal apprenticeship training scheme, according to experts, is an important, cost-effective and flexible means of skills transfer in the informal economy. But the system, which was once a major contributor to youth employment, is fast disappearing from the entrepreneurial landscape, resulting in acute shortage of skilled artisans. No thanks to increasing quest for formal education, the get-rich-quick mentality and harsh business environment, among others. Assistant Editor OKWY IROEGBU-CHIKEZIE examines the implications of this development and the clamour for its return in order to create jobs, boost productivity and stem youth restiveness.

    Automacs Technologies Limited Chief Executive Officer (CEO), Mr. Obiora Ogonsiegbe, is worried. His worry stemmed from the difficulty in finding skilled artisans, such as plumbers, bricklayers, electricians, and carpenters, to handle various jobs in the construction industry.

    According to Ogonsiegbe, it is extremely difficult to get quality, skilled artisans in the country. ‘’You have to go to the neigbouring African countries, such as Togo, Ghana or Cotonou, where informal apprenticeship training system is being taken seriously,’’ he said. He regretted that these countries were out-sourcing quality artisans to Nigeria.

    He, and indeed, other experts in various sectors, believe that the informal apprenticeship scheme is, perhaps, the most important method of skills transfer in informal economy. This, according to them, is because it offers a more cost-effective and flexible means of skills transfer, which absorbs a larger number of youths than their formal and publicly financed counterparts.

    They noted that apprenticeship training occurs mostly in the private sector, where the owner of an informal enterprise takes on apprentice (s), usually for a fee, and provides training in vocational skills over three or more years. It is an important source of training, which helps to provide needed skills that are required.

    The scheme is popular in most urban centers, accounting for about 85 per cent of skills training and transfers in most parts of the country. It is also a major source of livelihood for those in various enterprises, who engage in apprenticeship schemes, such as wielding, auto-mechanics, and auto-electricians.

    Others are tailoring, generator repairing, mobile phone repairing, carpentry, furniture making, catering, manicure and pedicure, and plumbing. These trades of the informal apprenticeship scheme were recognised as means of absorbing and training unemployed youths through manpower development and economic empowerment.

    But the story has since changed. The apprenticeship system is fast disappearing. Gone are the days when a master auto-mechanic would have about five apprentices under his tutelage. Today, many youths are unwilling to sign up to learn a trade. Many, who signed up, quit and opted for either motorcycle riding or taxi driving.

    Some of them, who remained to learn the trade, would not stay long enough to acquire the necessary skills. Earlier, people were proud to undergo tutelage as mechanics, plumbers, tailors, and bricklayers, among others. Not anymore. The youth are more interested in making quick money, which is why the majority of them have taken to motorcycle riding, popularly called Okada as their source of livelihood.

    A bricklayer, Mr. Ibidemi Akinola, lamented the serious decline in apprenticeship training, noting that the situation has dire consequences for the future. He said, for instance, that gone were the days when he used to have up to seven boys as apprentices, noting that they no longer find it interesting to learn the trade.

     

    The story changer

     

    Ogonsiegbe said one of the factors responsible for Nigeria’s inability to ride on the back of a vibrant informal apprenticeship training scheme to tackle the unemployment surge and close the wide sills gap, is the widely held belief that apprenticeship is meant for people, who cannot do well in the formal education system, or those whose parents cannot afford to sponsor their education.

    He said this has made it difficult to attract young graduates and youths of school age into the system, adding that the erroneous assumption by not a few people is that those who undergo apprenticeship are ‘never do well’ people and are not respected like their counterparts in the formal school system.

    Automacs Technologies CEO also stated that the attitude of masters in most cases constitutes hindrance to the practice of apprenticeship.  His words: “This negative attitude of the masters is caused probably by the fact that they are not trained in the act of teaching. Most masters are difficult and have little skills to sustain the interest of the apprentices on the job. This makes the rate of drop-out to be high.”

    Also, the economic condition of most parents of the apprentice and the trainees in most cases, make it difficult for them to sponsor the training for the agreed period. Master craftsmen are not spared of the problem of poverty.

    The result is that in most cases, they find it difficult to equip their workshops with necessary equipment, which can improve efficiency and make them meet up with contemporary technological needs.

    That is not all. Wrong career choice by the apprentices is also said to be a constraint to the development of apprenticeship system. Due to lack of exposure, limited knowledge of psychology and career counselling, apprentices often make wrong career choices.

    In most cases, careers are forced on would-be apprentice by their parents or guardians without due consideration for apprentices’ interest, ability and capability. This has often resulted into non-completion of the apprenticeship period due to his or her inability to cope with the physical and intellectual requirements of the training.

    Govt’s failure

     

    Although, the government has articulated a number of initiatives, interventions and empowerment programmes aimed at training and retraining the youths in various vocations, such interventions appear not to have made the desired impacts.

    As far as Ogonsiegbe is concerned, the Industrial Training Fund (ITF), for instance, has not lived up to its billing. He said if the Fund had made much impact, there would have been a substantial reduction in crimes associated with youths and restiveness.

    He recalled other efforts to include the creation of National Directorate of Employment (NDE) and its skills acquisition programmes, the National Poverty Eradication Programme (NAPEP) to address poverty in the country; the SURE-P and YouWIN, among others.

    He, however, argued that the various intervention mechanisms aimed at ensuring economic growth, which is rich in job creation opportunities and apprenticeship, have not yielded the desired positive results.

    The government’s education programme such as the Universal Basic Education (UBE), which made going to school mandatory for school-age children, is also said to have drastically trimmed down the number of children going for technical apprenticeship.

    More importantly, is perhaps, the indolence and get-rich-quick mentality of the people is believed to have resulted in increased rate of school drop-out and demand for buying and selling for quick profit with limited stress, especially when there was no respect for artisans, but high respect for wealth, no matter how ill-gotten it may be.

    Nigeria’s poor business environment has not helped matters either. The harsh business environment has forced many technical workshops to close down. Many of them lacked steady electric supply and have been forced by various tiers of government to pay multiple taxations.

    Also, owners of such technical workshops have little or no incentives from the government and are shunned by banks whenever they ask for loans.

    The lack of political will by successive governments, has also been a hindrance to entrepreneurship development and reduction of unemployment in Nigeria. The neglect of vocational and technical education has robbed the nation of the potential contributions of its graduates to national growth and economic development.

    This is why there has been dearth of competent artisans such as bricklayers, carpenters, printers, auto mechanics, laboratory and pharmacy technicians, vocational nurses etc.

    The way things currently stand, youths are not motivated to choose vocational and technical education. This may be why it is common to find many legislators donating motorcycles, grinding machine, shoe shinning tools to youths in their constituencies under the name of “youth empowerment”.

    This has, again, heightened fears by operators in various sectors that in a few years’ time, Nigeria will begin to experience an acute shortage of artisans.

     

    Call for return of apprenticeship

     

    Calling for a policy on apprenticeship, Ogonsiegbe said the problem of outdated and unimplemented policies was a major problem confronting apprenticeship system practice in Nigeria.

    He said presently there seems not to be any guiding principle from the government as regulatory agency for apprenticeship system. This, he said, has made apprenticeship less attractive to youths and graduates.

    According to experts, apprenticeship is a form of education and training. Informal apprenticeship also contributes significantly to youth employment and empowerment, thereby reducing youth restiveness. It also enhances national productivity in virtually all the sectors of the economy.

    An entrepreneur and fashion designer, Mrs. Ibikun Hassan, said despite the nonchalant attitude of some youths, who want to make it fast and big, the informal economy, where many of them operate, remains Nigeria‘s powerhouse and indeed, other developing economies.

    Hassan told The Nation that more than seven apprentices have stayed with her for over four years “I earned my degree over 20 years ago, and when l felt that l was done with paid jobs, l had to go for apprenticeship to learn fashion designing for 18 months.

    “Unfortunately, people think that they can learn the same thing within three months. You can’t beat experience, which comes with apprenticeship in anything you are doing,” she said.

    According to her, apprenticeship improves skills and trade secret for those who are patient and humble enough to go through the rudiments. It also provides opportunity for one to learn how to handle his or her business when he or she graduates

    Lagos Chamber of Commerce & Industry (LCCI) Director-General, Mr. Muda Yusuf, also lent his voice to the need to encourage apprenticeship.  According to him, there is a lot of value addition in apprenticeship, as the apprentice has so much to gain in a hands-on operation and process than being a green horn.

    He advised those in apprenticeship not to be so bordered about making money in apprenticeship, but concentrate on the knowledge  passed down to them from people who  have acquired the skills over time and have more experience and skill to pass down to them.

    The LCCI chief advised youths to have passion for whatever vocation or trade they desire to do. He argued that it is wrong for them to jump into any trade because they see others doing well in it rather than the love of the trade. And to minimise the risk of failure of any enterprise, he said one needs to know how gifted he is.

    “You don’t expect that once you have an idea, banks or lenders will give you money to deliver on them.  Having a learning curve is a more sustainable strategy,”he said.

    Also on the need for apprenticeship among the youths, Landwey Investment Group Managing Director,  Mr. Olawale Ayilara, wondered why those, who studied abroad come back to the country and pick the few jobs available.

    To him, it is simply because they are better skilled, with sophisticated apprenticeship training needed for the jobs they applied for.

    A trader in textiles and cotton materials, Mr. Kalu Agbai, also underscored the importance of apprenticeship when he acknowledged that it is customary in the Southeastern part of the country to undergo apprenticeship before engaging in almost any area of business.

    He revealed that he did apprenticeship for 10 years with his ‘master’ to learn not only the rudiments and secret of the business, but to also prepare himself for the challenges of setting up his own business and making a success of it.

    The Nation learnt that the age range from apprentices to masters in the informal training system is from 11 to 60 years of age. It, however, differs from one enterprise to another.

    It was also learnt that in some parts of the country, children between the ages of 10 to 14 work as apprentices. About 49 per cent of school age children are said to be in the informal apprenticeship system in Nigeria.

    Majority of these children, if not in the informal apprenticeship, end up on the streets hawking just to make ends meet. It is in recognition of this fact that the government allowed for more young people to be apprentices in certain enterprises rather than wander around the streets.

    According to experts, apprenticeship has over the years proven to be a tool for employment generation and poverty reduction at low investment cost as well as improving the wellbeing of individuals engaged in it. Unfortunately, the scheme has not been adequately harnessed in tackling the unemployment surge among the youths in Nigeria.

    The consensus is that successive governments have not given reasonable attention to alternative empowerment schemes, especially apprenticeship to galvanise the youths for national development.

    But for the neglect of the scheme, such skill acquisitions training within the confines of apprenticeship would have afforded the youths means to be relevant along the line of a particular profession such as fashion designing, furniture making, carpentry, shoe making, plumbing, electrical repairs, auto mechanic, retail trading and other related endeavors.

    This must have prompted the call by some Nigerians on the need for the government to introduce incentives for youths, who want to engage in apprenticeship as career path in alleviating poverty. They also called on the government and policy makers to encourage apprenticeship and technical training to fill the yearning skills gap in the productive sector.

  • Wanted: Two oil industry regulators

    Is a single regulator ideal for the petroleum industry? This is the question many have been asking following the National Assembly’s passage of the Petroleum Industry Governance Bill (PIGB). To some, the law’s creation of a single regulator will end up being a disservice rather than the solution for the sector. They are pushing for a rethink of the law. Group Business Editor SIMEON EBULU and Senior Correspondent Akinola Ajibade examine the issues.

    There is no industry more contentious in Nigeria than Petroleum. As the nation’s cash cow, all segments of the society are focused on it. The Federal Government and all other tiers of government depend on oil and gas. For over 30 years, various attempts have been made to reposition the sector to enable it play an expanded role befitting its status.

    The Petroleum Industry Bill (PIB), which was expected to create the necessary framework for this expanded role, will, however,  not materialise several years after its initiation. Although industry operators were excited when the news of the passage of the PIGB by the National Assembly hit them. But months after the PIGB passage, the euphoria seemed not only waning, but discordant tunes have started trailing its passage.

    The overriding policy objectives and goals of the oil and gas are to ensure the maximisation of the economic benefits to the nation and meet its demand for fuel at a competitive cost. Achieving such laudable objective will be dependent on an appropriate legal and regulatory framework.

    That framework, industry stakeholders suggest, should be the creation of dual regulatory bodies in accordance with existing structure – the Downstream and Upstream. However, a critical look at some of the provisions of the PIGB, tended to the creation, most likely of the emergence of a Petroleum Regulatory Commission (PRC) – sign posting an all-commission that would be empowered to regulate the petroleum sector. This has posed great concern to critical stakeholders in the sector, positing that this development, if it stands, will be counter-productive. They argued that leaving the enactment as it is, will create complexities and challenges for operators in the petroleum value chain.

    For instance, the structure, operation and nature of the downstream are totally different from that of the upstream sector.  Therefore, creating an omnibus commission to regulate the downstream and upstream with the same checklist and modus operandi, will not be industry-friendly, pointing out that what is required is a slim, focused and functional framework that will ensure effective institutional governance of the petroleum industry.

    Oil marketers under the platform of Major Oil Marketers Association of Nigeria (MOMAN), Depots and Petroleum Product Marketers Association of Nigeria (DAPMAN) and Organised Private Sector (OPS) are opposing the single regulator proposal for the industry.

    DAPMAN’s Secretary, Olufemi Adewole, described the proposed adoption of a single regulator for the sector by the National Assembly as an exercise in futility as it cannot work in Nigeria. According to him, the Senate would be setting a bad precedence for the industry if the idea of a single regulatory body is allowed to sail through.

    Marketers across board, he said, have met and agreed that they would not allow the idea of a single regulator for the entire oil and gas industry to succeed and encourage the growth of the industry.

    He said: “Prior to the end of 2017, when the Senate animatedly discussed the issue of a Petroleum Industry Governance Bill and thereafter, concluded that a single regulatory body was the best thing for the sector, we (marketers) came together and formed a committee to present our opinion on the issue.

    “As a matter of fact, we are against the issue of merging various units in the sector, under the guise of having a regulator for them. But we are surprised to see that the Senate has further divided the operation of the sector, by proposing a single regulator for the industry.”

    He urged the Senate to maintain the status quo by allowing each segment of the industry to run independently of the other, stressing that the idea would ensure transparency and good governance in the sector. ‘’We want the downstream segment of the oil and gas industry to be run independently; so also the upstream section of the industry. By so doing, the industry would be able to run its affairs seamlessly,” he stated.

    Also, MOMAN’s  former Executive Secretary, Mr Femi Olawore, said: “The position is the sector is too big for one regulator  to manage.” The industry, he said, might become amorphous and lose shape, if it is governed by one regulator.

    He said: “At the very beginning, we had only one regulator in the industry and we found out that it was unable to police the industry very well. We believe that the upstream sector is enough, not to think of bringing the troublesome downstream. The upstream is relatively quiet, but the volume of work there is massive; so, you need a regulator that will pay attention to it.”

    He said one regulator will become ineffective, adding: “Therefore, our recommendation is that we want two regulators – one for the upstream and the other for the downstream.”

    Also, the Independent Petroleum Marketers of Nigeria (IPMAN) Chairman, Chief Chinedu Okoronkwo, said it would be better to ensure that the industry is regulated by various bodies and not a single body.

    Stakeholders have also argued that the idea of a single regulator for the sector is not in line with the National Oil and Gas Policy, which provided for an upstream and downstream regulator, pointing out that it is  inappropriate to concentrate too much power in one organisation where there are different players. They said a single regulator would not view things from the different dimensions they deserve and from the viewpoints of the stakeholders.

    Given the diversity of objectives, ranging from guarding against systemic risk to protecting the individual consumer from fraud, it is possible that a single regulator might not have a clear focus on the objectives and rationale of regulation and might not be able to adequately differentiate between different types of institutions.

    In their opinion, one regulator may also suffer from some diseconomies of scale thus, one source of inefficiency could arise because a unified agency is effectively a regulatory monopoly, which may give rise to the type of inefficiencies usually associated with monopolies. In addition, they pointed out that there couldl be job losses in an economy that is not generating or creating jobs in the event that the decision to adopt a single regulator is final.

    They said having two regulators had been the vogue as the single regulator model has been unsuccessful in the past, adding that bureaucratic bottlenecks that will arise negates the ease of doing business and the policy vision being pursued by the Administration. In their estimation, the omnibus regulator will further result in cumbersome and delays in securing the approvals to conduct business.

    Other reservations held by the stakeholders are that the composition of these boards in the PIGB may not reflect the appropriate balance of powers to ensure effective board oversight; reduce the risk of executive-led decision-making and promote independence of the board to minimise undue government interference, as well as that the responsibilities expected to be handled by the proposed Commission are too many, cutting across various value chains in a key sector of the economy. For instance, they stated that the weight and measures functions are expected to be solely vested in the Commission.

     

    Rceommendations

     

    In their opinion, the government should ensure that the oil and gas industry operates in line with international best practice in the interest of the nation, more particularly on technical and commercial regulations, thus enphasising the need for two independent regulators, one for the upstream and another for the downstream sectors.

    On the downstream sector, the opinion is that the Petroleum Products Pricing Regulatory Agency (PPPRA), which has been saddled with commercial regulation since 2003, should be strengthened to form the nucleus of the new regulatory body accordingly. Similarly, the Department of Petroleum Resources (DPR) should be strengthened to oversee the upstream sector.

    The stakeholders said they were on the same page with the government, which over the years has made regulations and enacted laws to ensure that the petroleum industry is run in an efficient and transparent manner for the benefit of the nation. According to them, it is hoped that this noble intention is ultimately actualised. “We urge the government to effectively address fundamental governance, operational and structural issues in the industry,” they stated, adding that there is need to continue to promote stakeholders cooperation in dealing with issues in the downstream sector, given the pervasive impact of developments in this sector on Nigerians. “It is this overriding national interest that has brought us as critical stakeholders to canvass this position,”they said.

    Also leading the crusade for dual regulatory bodies for the oil and gas industry, is the OPS, which supports the creation of two regulators, each focusing on the downstream and upstream sectors of the Industry. To the OPS, it is worth pursuing with each focusing on the entire gamut of technical and commercial issues in their respective subsector.

    The OPS said: “We canvass a simplified arrangement where the Petroleum Products Pricing Regulatory Agency (PPPRA), which has been saddled with the responsibility as commercial regulator since 2003 and has the relevant experience, structure and personnel, should be strengthened to superintend the downstream sector of the Petroleum Industry while the Department of Petroleum Resources (DPR) should oversee the upstream sector.

    “Moreso we recall that government in its wisdom having taken into cognizance the decay and inefficiency that characterised the downstream sector in 2003 established the Petroleum Products Pricing Regulatory Agency (PPPRA) as a separate and distinct regulatory body to oversee the downstream sector. This singular act has to a large extent restored the commercial viability of the sector through private sector investment.”

    The downstream regulator, OPS said, should focus on commercial and technical activities in that sector, while the other regulator  should oversee the technical and commercial activities in the upstream sector.

    The body said the responsibilities expected to be handled by the proposed Commission is too many. It cuts across various value chains in a key sector of the economy. For Instance, the weight and measures functions are expected to be solely vested in the Commission and all government agencies exercising powers and functions in relation to the petroleum industry would be required to consult the Commission.

    ‘’There are too many responsibilities to be handled by one regulator, especially in such a complex and critical sector encompassing key value chains. The bureaucratic bottlenecks that will arise therefrom clearly negates the ease of doing business policy vision being pursued by the Administration.

    “We believe that the omnibus regulator will further result in cumbersome and constant delays in securing the necessary approvals to conduct business,”they said.

  • Wanted: Level playing field in NBA election

    Mr. Mela Audu Nunghe, a former chairman of the Nigerian Bar Association (NBA) Abuja branch, has been appointed chairman of the Board of the International Trade Fair Complex, Lagos. In this interview with Legal Editor JOHN AUSTIN UNACHUKWU, he bares his mind on the forthcoming NBA elections, the crisis in Abuja branch, the resurrection of the Trade Fair Complex and sundry national issues.

    The Nigerian Bar Association (NBA) will elect new officers in July. What are your expectations?

    My advice to the Bar is that they must avoid any pitfall that will lead us to any crisis. There should be no godfatherism in professional associations, like that of the NBA. Anybody who feels that he is qualified to lead the association should present himself. They should not use religion or any form of divisive tactics to divide the association. Merit should be the yardstick. The Bar association has no religion, no tribe. The Bar association is a collection of lawyers who are bound together by that calling of being lawyers. That is one of the reasons why I like the military. When an officer is due for promotion, even if he is from the same house with the last general, he will be promoted accordingly because he deserves it. That should be the practice within the NBA and we should also remember that as a democracy, other people are watching us . We must be very careful because we are being watched by other associations to set the pace. So, I wish the Eastern Bar Forum who are supposed to produce the next NBA President and all the aspirants the best of luck.

    Why is the Abuja branch of the NBA still divided?

    The Elders Committee of the Bar have tried and they have not come out of this situation. I think that there has to be one drastic and if possible an action that should bar all those who are causing this crises in Abuja branch. They should be suspended until we attain stability, so if I have been in the centre of the crises, for God’s sake, for the sake of the association, I should be barred at least for two years or more until we have a stable association. Then they should be careful on who they appoint to conduct elections because some of them have their own candidates and when they come to conduct elections, they do everything possible to put their candidates in office.  Why then do you think the scale of justice Ibi Jus ibi remedium does not have a head or where it has one, the face is covered? It is because the law does not know anybody’s face. Law must operate for the existence of good society, so when you bring somebody who has interest in Mr. X and everything he does is tilted towards wanting Mr. X to win it wont work because the moment other contestants see that there is no transparency, they will revolt.

    What do you make of Chief Joe-Kyari Gadzama (SAN) lawsuit over last election?

    The matter is in court. It is a matter of common knowledge, some people are blaming why the other candidate should go to court. But it is his right, that is the most civilised way to seek redress. I do not see why anybody will begin to blame him for going to court to ventilate his grievances. It is the most civilised way to seek redress.  Do you expect him to mobilise some young men, give them money and let them be causing commotion every time the NBA  is meeting?  It shouldn’t be, so we should commend his courage for taking legal steps to challenge whatever he thinks is wrong. At the end of the day, whatever the court says, even he himself will be bound whether he likes it or not.

    You ran for  the House of Representatives  under  the Congress for Progressive Change ( CPC). What is your next political move?

    Well, once you start a race, you will like to complete it at any time in your life. The developments in the system since then have been great because from CPC, we have APC which is the ruling party. There are so many things that one has to be very careful in looking at but I do really want to represent my people at any given point. I can’t say with certainty what is going to happen, everything lies with God. If I am contesting for a position and I see a more credible candidate than myself, not because of ego, I will support him. If I trust you so much and you have such credibility that I believe that you can deliver more than me,  I will give way for you. It is not life’s struggle that you must be there, after all you gain power only if God wills. No matter what you think about yourself, unless God wills, you cannot get into any position.

    How have your representatives fared?

    I desire to represent my people and I believe that I will give them better representation than  all the members of the House of Representatives that have come from my place. I know that none of them  talks. None  of them  has either moved a motion or  led a debate on any issue because of their backgrounds and because they were not supposed to be there. But, for one reason or the other, they are there. Most of those who came to represent Bilri Balanga, Gombe State, if you count them, you will find out that none of them except the late Idris Abubakar who was in the Senate  and late Tawari  Umbis Wada  who incidentally were both lawyers, we never had such robust representation from any  of our people in the House of Representatives. They were the ones  who made us proud and gave our people robust  representation in the National Assembly. Because they were articulate, they understood the issues, they understood what the responsibilities and the duties of legislation entailed and they did it with all their might unfortunately, they were not able to live longer than the day they left.

    You chair the Lagos International Trade Fair complex board. How do you  feel?

    I thank God for the appointment and I will like to use this opportunity to thank President Muhammadu Buhari for finding me worthy among millions of Nigerians to be appointed to this position. I didn’t expect it but I know that somebody somewhere know that I deserve it, that is why I give God all  the glory, because God uses people. It came to me as a surprise and when I find myself in situations like that, I brace up to the responsibility. So, one of the first things I did when I saw the appointment was to pull out the Act to understand the enormity of the responsibility before I started getting feelers and information about what the Lagos International Trade Fair is all about. I saw that it is a place that is needing attention. I said whatever it is, I trust God to help me to make a mark and do something that will stand the test of time.

    Have you visited the complex?

    We were inaugurated on March 1. Before I visited the Trade Fair complex, I thought that it was wise to consult with the relevant government agencies. I thank the Ministers of Trade and Investment for giving  me audience. I consulted with them. I had the privilege of consulting with the Director-General of the Bureau for Public Enterprises ( BPE), the Solicitor General of the Federation and the Attorney-General and Minister of Justice. I consulted them and other agencies, so we can put our heads together to carry out the mandate. Having done that, I visited the complex. The purpose was to have the inaugural meeting of the board, which to took place on April 13. Along with other members of the board we took a tour of the complex. It is such a sad story. You will be excited coming to that place but you will leave that place very sad.

    Why?

    Because it is wealth lying fallow. It is a gold mine that is abandoned untapped. Some people call it a dead cow, others call it a monumental waste. How to move from there to restore life to that place is what no one person can do.  Not even the board alone can do it, so it has to take the collective efforts of the management, the board, the relevant Ministries and agencies to see that this place is transformed to a national pride. I do appreciate the enormity of the other agencies like the Tafawa Balewa Square (TBS), the National Theatre and so on but since this is my own area, let me concentrate on that and see how collectively together we can fall in to make it a viable project for the Federal Government. I do know that there is a National Council on Privitasitaion which is the body that is saddled with the responsibility to concession or privatise most of these government agencies. We would work closely with them and the BPE to see how the Trade Fair Complex is revived without necessarily falling into the same trap that happened the last time an attempt was made to concession it. We are ready to support government policies, steps and initiatives to seeing that the Lagos International Trade Fair Complex is once more in the limelight, and becomes a national and international center that will attract  the cream of business globally for commercial activities.

  • Wanted: Drivers day (II)

    Other memorable or motivational activities.

    Benefits:

    • Boost Driver Education.
    • Boost experience-sharing among drivers and other officers.
    • Boost the morale of drivers among other staff (gives the drivers a sense of belonging in the organisation).
    • Motivates the drivers for improved productivity.
    • Promotes the commitment of the drivers.
    • Promotes safe driving and security.
    • Promotes positive competition for efficiency and effectiveness.
    • Promotes driver retention.

    Although this is an initiative in Nigeria, we would like to draw a quick reference: The World Day of Remembrance for Road Traffic Victims was started by Road Peace in 1993. Since then, it has been observed and promoted worldwide by several NGOs. However, on  October 26, 2005, the United Nations endorsed it as a global day to be observed every third Sunday in November each year making it a major advocacy day for road traffic injury prevention.

    The whole World is concerned about the high rate of road traffic crashes and how to drastically reduce it but no programme has been specifically established to directly address the drivers (human factors) who constitute over 70 per cent of the causes of accidents.

    I believe that if Nigeria starts the observance of the Drivers Day, other countries and the UN will quickly see the relevance and the need to make it a global event to be observed yearly. Nigeria will  be on global record as the initiator of the event.

    I hereby use this forum to encourage all the employers of drivers, transport companies, driver unions and other stakeholders in the transport and safety sectors to key into the proposed Drivers’ Day to be observed on the third Thursday in November of every year. The third Sunday of November is already the UN Day of Remembrance of road accident victims.

    These two events when appropriately marked every year, will greatly boos safety – consciousness and reduce road traffic crashes on the roads. No cost is too high to prevent the loss of lives.