The Nation Newspaper

Tag: woes

  • ‘Diversification ‘ll end economic woes

    A former Commissioner for Finance, Economic Planning and Budget in Lagos State, Dr Ismail Adebayo Adewusi, yesterday said the  solution to Nigeria’s current economic challenges lies in the diversification of the economy from oil to agriculture.

    Adewusi who spoke in Ibadan, Oyo State, said the mentality of exporting crude oil at the detriment of other economic ventures which had reduced the nation to a monolithic economy, was debilitating and needed immediate arrest.

    The politician who felicitated with his former boss, Asiwaju Ahmed Bola Tinubu on his 64th birthday and his immense contribution to the political development in the country, urged President Muhammadu Buhari to break from dependence policy of the past administrations in order to fix the wobbling economy once and for all.

    He said: “The only way we can improve this economy is to quickly do what I call the diversification thing. Let us quickly address the issue of diversifying our economy away from where we are.”

    “We have consistently canvassed for a diversification of the economy away from oil, because as long as this external shock from the global oil price continues, we will be having crisis managing our economy, especially in fulfilling government obligations. It is about time that we tackled this issue of diversification of the economy in a very serious manner.

    The immediate former chairman of Wemabod Estates Plc, a subsidiary of Odu’a Investment Company, also said that: “Commodity prices are declining internationally and oil, being the driver of the revenue of the Nigerian government has suffered very serious decline, and this has affected the capacity of government to provide resources to turn the economy around.

    “You would see that even in the 2016 budget, which is a budget of about N6trillion, it has a deficit component of about N2trillion, which is very substantial.

    “But the main issue facing Nigeria today is the problem of over reliance on this mono- cultural, mono-product economy, which requires that we diversify to agriculture.

    “Agriculture requires single digit financing. In terms of interest rates, agriculture with subsidy on inputs, fertilizers, seedlings, will go a long way. Even financing in terms of real channeling of financing intervention funds in agriculture will boost production, while providing opportunities for our youths to start something, rather than looking for jobs that are not there. These are the things we need to immediately embark on.

    “And the good thing about agriculture is that it does not take so long a time. If you plant maize today, in 90 days time, you begin to harvest. The rainy/planting season is here already, so, we need to immediately drive this process. It is not about mouthing it”, Adewusi stressed.ý

     

     

  • Resolving a college’s financial woes

    Resolving a college’s financial woes

    The new Governing Council of the Adeniran Ogunsanya College of Education (AOCOED), Otto-Ijanikin, has embarked on ‘stringent’ reforms to sanitise the system it described as ‘rotten’ and block loopholes. But workers say unless a financial intervention comes from the Lagos State Government, the reforms would not solve the institution’s problems. ADEGUNLE OLUGBAMILA reports.

    The Adeniran Ogunsanya College of Education (AOCOED) Otto/Ijanikin, Lagos State, is struggling to pay salaries.  Its management has been dipping ita hands into pension funds of workers and cooperative societies’ deductions to augment the N125 million monthly subvention from its proprietor, the Lagos State Government for the past two years.

    This has led to a debt of about N200 million owed cooperatives as well as the workers for pension.

    The workers are not happy about the situation and have called on the government to provide emergency bailout funds and increase the subvention to the institution. Their discontent led to a lockdown of the campus in August and a series of meetings with government officials.

    The leadership of the College of Education Academic Staff Union (COEASU) and the Senior Staff Union of Colleges of Education in Nigeria (SSUCOEN) have been fighting against the practice of running the school with cooperatives’ contributions and pension fund since the administration of the immediate past provost, Mr Bashorun Olalekan.

    COEASU chairman Michael Avosetinyen said the situation is worrisome.

    “The financial status of AOCOED is nothing to write about. Our internally-generated revenue (IGR) is critically lean when compared to what we had in 2012 and 2013.  Government’s monthly subvention cannot pay salaries and meet other demands.  Over the last 25 months, our pensions were deducted but not remitted because management said if they did that, they would not be able to pay our salaries,” Avosentiyen said.

    SSUCOEN chairman Wunmi Ombugadu said the situation is so bad that a bailout was needed urgently.

    However, the new chairman of the Governing Council, Prof Tunde Samuel, believes the solution to the problem is blocking loopholes in the institution.

    Samuel, who was inaugurated in September, by Governor Akinwunmi Ambode, has told workers that a financial reprieve may not be underway if the college cannot justify the effective utilisation of resources deployed by the governement.

    “The whole system is rotten and needs complete overhaul,” Samuel told this reporter Friday last week.

    “As a professor of Economics of Education, I don’t believe there is underfunding (in AOCOED) but managerial incompetence. In my specialty there are certain indices that must be satisfied before you can say an organisation is underfunded, overfunded or not properly funded. Firstly, you examine the optimal utilisation of allocation to the institution. What is the rate of leakages and wastages during disbursement of fund?”

    Samuel frowned at the diversion of pension funds to pay salaries, blaming the previous council for not checking such occurrence.

    He said: “You are not expected to convert pension deductions as well as cooperative accounts to pay workers’ salaries. It is more than criminal.

    “As I am talking to you, almost N200 million pension deductions were not remitted; and the college used the money to upgrade their financial insolvency without the approval of their proprietor. That means the prospective retirees would have their claims in jeopardy now.  If we had a proactive Governing Council in place, all those things would not have happen happened.”

    Nevertheless, many workers consider the council’s claim that the institution does not need funds as a joke.

    Chairman, Non-Academic Staff Union (NASU) of the college, Comrade Femi Adebayo, described the Council’s quest for blocking loopholes as a mere political statement.

    He said: “It is a mere political statement. We are not part of management, therefore, we are less concerned about blocking loopholes. If there are, let them tell us, but Council has not found a way to seek audience with us. All we are interested in is the money they owe us. We took a loan from bank and management is the guarantor.

    “Since their inauguration, they have held meetings more than three times and our Edict says Council can only hold meetings four times in a year. Each time they sit, they all collect sitting allowance. They are not coming for charity. Management must look for money to pay them; and we are saying the college is broke. Is it what we need at this time? They are coming too often and, to me, they are simply buying time. Management should just pay us the bank loan they are collecting; otherwise, we would shut down the place again soonest.”

    An academic staff of the institution (names withheld) also believes government needs to up the institution’s financial status.

    “Reform is one aspect; but our major problem is underfunding,” said the source. “Our monthly subvention is N125 million. We have IGR and that is where we remove about N10 million monthly to augment salaries. It is even more if the cooperative money is being removed. If the subvention is okay, there won’t be any problem. He (council chairman) is a professor of Economics of Education and he must have seen those documents before him.”

    A source from the Registry Unit also said no amount of  plugging loopholes can create any magic, except the Council accepted  that the institution needs financial liberation.

    “The council may just end up digging us deeper into financial chaos. We have repeatedly made our position known to government before the new council came on board. All they (Council) need do is to push our agitations further down government throat so that we can get out of this mess in no time.”

    Apart from financial problems, Samuel also complained about academic misconduct in the institution, which led the council to sack two lecturers.

    “There are some professional misconducts recorded among staff whose appointment have been terminated already, while others were recommended for dismissal. The Council voted for the latter. The severity of the matter has to do with a lecturer altering marks for a female student with about six carry overs. The student too has finally been expelled.

    “Governing Council had to set up a committee for a case that should have been decided since last year February, because the (former) Council was foot dragging over it.  Another very senior lecturer and a pastor for that matter was accused of plagiarism. He was found guilty and Council decided he must be separated from the institution. Those were the two major cases,” he said.

    The COEASU does not fault the council’s position on discipline.  Its chairman, Avosentiyen, said the union had always warned members not to dabble into anything that would burn their fingers.

    “We have repeatedly made a release to our members to steer clear of un-academic practices and that anybody that is found wanting should face the music. We have always told them the law is no respecter of any person,” he said.

    Another contending issue is the current status of workers of the AOCOED International School and AOCOED Staff School run by the college.

    SSUCOEN chairman, Ombugadu, urged Council not to go ahead with the planned disengagement of workers of the two schools but absorb them into the college.

    “Their letter of employment stated that it was AOCOED and not the schools that employed them.  Therefore, we are urging the Council that rather than relieve them, they should gradually realign them back to the mainstream. We know it was the former management that misled the Council into wanting to disengage them,” she said.

    Public Relations Officer of the college, Odunayo Adebowale, declined comments about the various issues, claiming he is currently on leave.

     

  • Buruku River: Confluence of trade and woes

    Buruku River: Confluence of trade and woes

    A first time traveller on water would shiver at the large mass of River Buruku, Benue State. The river which takes 12 minutes to traverse on a wooden boat is a hub for business activities amongst communities in the neighbourhood, especially on market days, as it serves as passage for farmers to transport their produce to meet traders, and passers-by. OLUWAFEMI OGUNJOBI who just returned from the community, reports.

    A one and a half hour drive from Makurdi, the Benue State capital brings one to Buruku, a river side community. The town which had existed long before the creation of Benue State in 1976 is located on the banks of River Buruku, which is an extension of the popular river Benue. Created out of Gboko Local Government about 20 years ago, Buruku local government area, with its headquarters in Buruku town, has an area of 1,246km-square and a population of 203, 721 according to the 2006 census. It shares boundary with Logo and Katsina Ala Local Government Areas, which produce yam and rice in high quantity. These food produce are transported through Buruku River to major cities like Gboko, Otukpo, Aliade and Makurdi.

    This reporter gathered that Buruku Council was created in recognition of the commitment of its inhabitants to economic growth of the state. Parts of the major villages that make up Buruku Local Government are situated across the other side of the river and they share borders with Sankera in Logo Local Government Area of the state.

    Being predominantly farmers and fishermen, the people of Buruku depend largely on Buruku River for irrigation and fishing. Meanwhile, crossing the river is regarded as the fastest way to Anyiin, hometown of former Governor Gabriel Suswam, Gbanyam village and Ugba town, headquarters of Logo Local Government. The people of Logo too are predominantly farmers and in fact, they are one of the major producers of yam in Benue State.

    A visit to the river side gives a glimpse of the enterprising nature of Buruku residents. Small huts are built to serve as restaurants to entertain travelers. Pounded yam, fried yam, locally-made cake, also known as ‘akara’ are served to customers. There is also a ‘mini-depot,’ where fuel is sold at black market price to vehicles and boat engines. On the other side, are young men and women eking a living by trading in sugar canes, oranges, pears, and other fruit items. There is also ‘kuu’, a locally-made corn. Some of them channel the profit towards their upkeep, education, and to relieve their parents of stress. One of them is Benjamin Kerter, an English/Theatre Arts student at Katsina-Ala College of Education. Benjamin sells sugarcane at the riverside; he has been in the business since he got admission into the school two years ago.

    According to him, ‘I have been in this sugarcane business for quite some time, say since I got into school, and I give it my best anytime we are on break because I use the proceeds to support my education.”

    Asked how much he makes from the business, he said; ‘Sugarcane business is not really profitable, and has so many people into it. We make around N700 (Seven hundred naira) in a day, but it depends largely on how many people cross the river. We make good sales on market days, or during important occasions that require people to travel across the river. And that’s when we make around N1, 500 (One thousand, five hundred naira).”

    The river-side is always busy, especially every Wednesdays – which is Ugba market day, a community that is 30 minutes from the riverside. Buruku residents also trade at the market every five days. Most times, students in government schools defy school work for farm work and trade on market days.

    Transportation problems

    However, despite its economic potentials, the people of Buruku lack modern transportation system as well as a bridge over the Buruku River. The inhabitants of these communities have suffered these challenges for decades. The problem has made transportation of farm produce to the cities a difficult task. It has also caused many deaths. Though the communities have made several attempts to tackle the problems themselves, their efforts have yielded no fruitful result. The communities have also lodged several complaints to successive governments in the state, requesting them to extend their cries to the federal government, but all these to no avail. Presently, they have resorted to boats and canoes to enable them move around. Some farmers are left with no option than to board canoes with their produce on their heads to cross the river.

    Interestingly, it is not only humans that ride on the boats to cross Buruku River. Cars and motorcycles also get to ‘enjoy’ the privilege, even though the experience is a risky one and not funny at all for the faint-hearted.

    Although it has become a lucrative business and an opportunity for some inhabitants to make thousands of naira especially, during the rainy seasons, the operators are, however, forced to relocate their usual boarding points at the river bank, whenever it rains, to avoid the boats and people capsizing in the river.

    Zador Akinde, a native, gives an insight into how transportation across the river works. There are two kinds of boats; the ferry and the small boats. Travelling on the river in the small boat takes five minutes to the other side of the river, while travelling in the ferry boats takes 10 to 12 minutes depending on state of the engine. The small boat can take maximum of 15 passengers, while the ferry takes up to 100 passengers at once. The ferries can also convey vehicles, motorbikes alongside passengers. A ferry can take maximum of two vehicles. This route links to Zaki-biam, Katsina-Ala, Anyiin, Ugba and other communities of Benue State. It is also a shortcut for travelers going to Jalingo, Plateau, Kaduna and other northern states.

    Although there is a road across the river in the far end of Kastina-Ala town, the River Buruku terminal point located in the Ihungu Igor village mainly provides the needed shortcuts for motorists plying the route. Most commuters prefer using the route to reach their destinations quicker, at least to save time and resources by passing through the Kastina-Ala axis by road. Consequently, both private and commercial vehicles find it suitable to ferry their cars and passengers for a fee at the Abuku crossing point.

    Even former Governor Gabriel Suswam, this reporter learnt, finds the route most appropriate to travel to his village of Anyiin in Logo Local Government Area. Indeed, for various reasons, people have used the Buruku River crossing to engage in profitable and cheaper economic and social activities.

    Tersoo, a ferry boat driver, explained that charges depend largely on the type of vehicle that wants to cross, and how heavy they are. Charges for taxis are from N400 upwards, while buses range from N700 upwards. In some cases, they charge N1, 000 for heavy-loaded vehicles. Charges for Motorcycles range from N200 to N300.  As for humans, N50 is charged per head to cross the river. In some cases where the ferry is already loaded with vehicles, passengers are given free ride across the river. Corps members, whose places of primary assignment are across the river most times, enjoy this favour.

    They also make brisk sales on market days and during important events, when more vehicles throng in. During important occasions, charges, especially for private vehicles, are based on how highly-placed the person is – far from the normal fee.

    The cost of constructing the boats is huge. Zador explained that it costs N400, 000 to N500, 000 to construct a ferry boat, which doesn’t include the engine while it costs around N200, 000 to construct the smaller ones. Buying new engines is also quite expensive and beyond the reach of the local boat operators. According to him, the engines in their boats are the ones they can afford. The ‘Belgium’ (second hand) Yamaha 30 horse power cost N350, 000 while a brand new one is about N750,000. Smaller engines are also sold for around N200, 000.

    A year to remember

    Aside trade and transportation, the banks of Buruku River also serve as recreation. Overtime, picnickers and fun seekers in Benue State have made it an annual event to mark the Boxing Day celebration on the river bank. Fun-seekers turn out massively to do sight-seeing, picnic and play games and also win various prizes. Some even use the day to make marriage proposals to their loved ones. The picnickers have also succeeded in attracting government attention, as the Buruku Local Government Council now sponsors lots of games at the beach to encourage picnickers and create an enabling tourism potential for the state.

    The annual events and celebration has also gone smoothly since the beach was discovered, until December 26, 2013. On that fateful day, many young students of various higher institutions in the area who had come to socialise had  finished catching their fun, and were about to leave at about 8:45pm. However, only one ferry boat was available to convey the 125 fun-lovers across the river. As the story goes, the Maritime Union tried to stop them but the passengers insisted, because it was the last boat for the day. Problem however started when they got to the middle of the river and a boy brought out some fireworks. Some guys who were not comfortable with the development challenged him. In the process, they started exchanging words and the same boy brought out a knife to stab his challengers. The action triggered a fight in the boat. It led to pandemonium as other occupants of the over-loaded boat ran towards the driver’s side for safety. According to Zador Akinde, the weight of the people rested heavily on one side of the boat and as a result, the boat drifted, tilted and suddenly capsized before anyone could calm the warring parties.

    Stories have it that the driver lost control following the distraction from the warring occupants barely 500 meters to the berthing point, and the passengers were thrown into the river.

    The incident, which happened at the Abuku crossing point of the river, left 18 people dead.

    The Maritime Union and the Marine Police regulates the activities of the boat drivers. They ensure that the boats are in good condition, and the ferries do not carry more than they can safely convey. They enforce protocols or set rules at the river banks to ensure safety in water transportation, and also watch for criminal activities. They also defend the riverine area against subversive elements and external threats.

    It took 11 hours to recover the bodies of the drowned passengers. Ironically, the boy who was said to have instigated the pandemonium escaped unhurt because he could swim, while those that drowned died because they could not swim.

    When our correspondent asked if there are life jackets for passengers, they said, the locals consistently refuse the use of life jackets, which are dumped in the union’s office at the riverside. Their refusal is because Buruku River isn’t as deep as other rivers in Benue State, and there are no wild animals in it. Also, a handful of Buruku residents are good swimmers, who can easily rescue drowning passengers when accidents, which they say are very rare, occur. The life jackets are said to be donated by politicians seeking votes and non-governmental organisations.

    Election time, busy time

     As elections approach, the river is always as busy as market days. Residents who have left neighbouring cities travel down to their communities to exercise their civic right. Even politicians return home during this period. But, it’s not always rosy at this time, especially for electoral officers deployed to wards and polling units across the river. Corps members and the natives are used for the elections.

    At the last 2015 general elections (which our correspondent was one of the Presiding Officers), electoral materials were transported across the river around 3am in the night to the RAC Centre ahead of Saturday’s polls. “Our polling area was Agwabi, and I was posted to LGEA School, Buter.  The exercise went well, but encountered problems after we left the collation center for the INEC office. We got reports not to dare cross the river because there were some aggrieved parties who were not satisfied with the results in their wards, waiting to pounce on the electoral officials as it happened during the 2011 elections. On that occasion in 2011, aggrieved natives attacked electoral officials and poured the election materials into the river. We were only able to escape unhurt, with the quick intervention of Logo Police Command, who saw us through another route through Katsina-Ala to Buruku.”

    Government’s neglect and a people’s appeal

    In 2011, former president, Goodluck Jonathan promised two bridges across the River-Benue to avert frequent deaths resulting from water accidents. One of the bridges was to be built in Buruku to link Gboko direct to Ugba and Ayin – all in Logo Local Government. And the other was to be built at Kwata, to link Abinsi/Agasha from Makurdi straight to Wukari in Taraba. Four full years after, none of these bridges have been constructed. All the Federal Government roads inherited from the administration of President Olusegun Obasanjo in 2007, that were in manageable states, are presently in bad shapes, with criminals taking full advantage of the situation to unleash terror on commuters. They include the Katsina/Ala–Takum, Vandekya–Katsina/Ala–Zaki/biam that connects Taraba and Cross-River. Others are Lafia–Makurdi, Makurdi–Otukpo and Aliade–Gboko. Federal roads like Makurdi–Naka–Adoka–Ankpa, Adoka–Agatu–Oweto roads are death traps and have never been good since 1999 till date.

    Since that ugly incident of December 2013, the Maritime Workers Union of Nigeria (MWUN), Buruku branch has called on the Federal Government to provide its members with more sophisticated engine boats capable of ferrying heavier capacity of passenger weights. They have also appealed to the Federal Government to build a bridge across the river, to serve as a major crossing point to the three local councils of Logo, Buruku and Ukum (all in Benue), as well as linking parts of Taraba.

    My host and guide, Akinde has a good command of English language. He completed his secondary school education few years ago, but was called home from Lagos because of family responsibilities. He aspires to further his studies. His utmost cry is a bridge across the river for easier transportation. Will the government ever hearken to their plea?

    Only time will tell.

  • Buhari not to blame for Nigeria’s woes, says Yari

    Buhari not to blame for Nigeria’s woes, says Yari

    •Governor: NGF faring better under President

    Nigeria Governors’ Forum’s (NGF) Chairman and Zamfara State Governor Abdulaziz Yari has emphasised that President Muhammadu Buhari cannot be blamed for the nation’s economic  woes.

    The governor, who spoke with reporters in Abuja at the weekend, noted that what Nigeria was going through was a reflection of the global economy, which adversely affected international crude oil prices.

    He added that despite the drop in oil prices, Buhari had done well in managing the economy in the last five months.

    The NGF’s chairman said only Nigerians, who were aggrieved by ministerial nominations and other appointments, could be unhappy with Buhari.

    “They should understand how Buhari emerged as President and the situation he met on ground on the issue of the economy, which is a global issue,” he pleaded.

    Yari noted that the present global economic recession was tougher than that of 2008, stressing that China, Brazil, Argentina and other developed economies were experiencing drop in their Gross Domestic Products (GDPs).

    “The only countries that are doing well are America and India. So, there is significant drop in GDP globally, except America and India. So, it is not about Buhari,” he added.

    The NGF chairman noted that before, the country was selling oil at “$102/$110” with $38 as production cost and $70 remaining for sharing as revenue.

    He added that today, “we are selling at $46 and the Joint Venture partners are still taking $38 as their cost of production, thereby leaving us with less than $20”.

    “So, how are we going to survive?” he queried.

    “But we are still moving and thinking of how we are going to show that Nigeria has piloted change. So, the people of northern Nigeria or the entire Nigeria should look at this scenario because those in the global business know what the situation is and there is no magic. So, therefore, I believe the President is doing well and he started very well,” Yari said.

    The economy, he said, would experience a significant improvement as all the leakages were being blocked through the introduction of the Treasury Single Account (TSA).

    “So, we are trying to manage with the little that is coming to us for the betterment of Nigerians,” he added.

    Stressing that Buhari came on board with an agenda, he said Nigerians should give him time and chance to work.

    Yari said: “Definitely, he will deliver the campaign promises and at the same time the issue of security, energy, productivity and discipline in the service. What he has achieved within the five months is remarkable.

    “I have no idea that they are not happy because, if anyone can say that, it should not be the North alone; it should be all Nigerians.

    “And I am surprised anyone will say he or she is not happy. But maybe they are not happy because he did not consult them in the selection of who his ministers will be. But in general terms, he has done well.”

    He maintained that the NGF, which was crisis-ridden before his tenure, was now faring well under his leadership.

    His words: “Glory be to the Almighty, who gave me the opportunity to be a chairman by the support of my colleagues. Now, we are having one forum and it is a rallying-point to all governors and a rallying-point to the Federal Government.”

  • Unionists blame govts for continent’s woes

    Unionists blame govts for continent’s woes

    African leaders must take the blame for the various socio-economic challenges limiting the continent’s emergence as an economic giant, unionists have said.

    They spoke at the “Human and Trade Union Rights Network of the International Trade Union Confederation (ITUC), African Region”, hosted by the Nigeria Labour Congress (NLC) in Abuja.

    The two-day event, which drew participants from some African countries, noted that the insecurity challenge, though a universal issue, overwhelmed African countries due to greed and corruption of the leaders.

    NLC President Comrade Ayuba Wabba, in his opening address, noted that corruption was at the heart of the problems in Africa and Nigeria.

    “The problem of unemployment could not be isolated from the issue of insecurity, which has been a real threat to all of us, until recent time. There is no doubt that we are sitting on a time bomb when we look at the rate of migration across borders,” he warned.

    He condemned the government’s position on privatisation, warning that it was only abandoning her responsibility.

    He lamented that the government had mortgaged most of the achievements made by the past leaders who emerged just immediately after the nation’s independence.

  • Artistes are to blame for their woes, says Alex Usifo

    Artistes are to blame for their woes, says Alex Usifo

    As entertainers continue to seek bailout from the public whenever they are ill, their colleague and veteran actor, Alex Usifo, has described the act as shameful.

    Usifo’s position is contrary to that of many who have made a case, especially for veteran artistes who have died in penury. Usifo noted that artistes’ wellbeing depends solely on the decisions they make in their glory days.

    Speaking with The Nation, the actor likened the entertainer to a businessman who either knows or doesn’t know what to do with the resources at his disposal.

    “A good businessman, even if he has N5, 000, will know what to do with it. Some of us are more excited about the show. We don’t remember the business. They are inseparable. I’m trying to say that if I don’t have enough money today, it is not the fault of the industry. It is not because I have not made money in the industry. I have made millions in the industry. That, I can also say concerning those who have such problems, because we have seen cases where somebody would tell you that he started small and then prospered. I think it actually depends on your vision and what you want to be,” he said.

    However, to Usifo, it is not a crime to seek help in times of need. “If you want to judge people by their mistakes, you won’t help anybody. When somebody is dying, it is not the time to blame the person. You heal the person first. Let him get well then you can begin to say whatever you want to say. But if you say because it is irresponsible, you won’t help the person, then you are actually wicked. And since the person has also contributed his quota in terms of making people happy and in terms of the GDP of the country, I think his case should be looked into,” he said.

  • Paints manufacturers’ tale of woes

    Paints manufacturers’ tale of woes

    About 70 per cent of raw materials used in the paint industry are imported. With the slide in exchange rate of the naira , coupled with lack of infrastructure and rising insurgency, local paints manufacturers are in a quandary, fearing that many firms in the sector may be forced to fold up, reports Assistant Editor CHIKODI OKEREOCHA.

    After two decades of uninterrupted operations, achieving 20 per cent market share, Chemstar Industry Nigeria Limited, manufacturer of Finecoat and Shield Paints, should be celebrating its success.

    The company, which began operation in a room in 1996 with three workers and two distributors,  boasts of over 1,000 workers and  2, 000 distributors spread across the country.

    It has also established factories in Johannesburg, South Africa; Accra in Ghana and Turkey. However, despite achieving between 60 and 65 per cent capacity utilisation, the company marked its 20th anniversary with measured excitement. Its turnover in the previous year, The Nation learnt, was low and, perhaps, did not warrant a loud anniversary.

    “Because of rising insurgence in the North, our turnover has plummeted, especially in the previous year from what it used to be,” Group Managing Director, Aderemi Emmanuel Awode, declared at the company’s 2014 Customers Forum in Lagos, as part of activities marking its anniversary.

    He said the company’s turnover plummeted as a result of rising cases of insurgence in the Northern part of the country, including Abuja, where about 65 per cent of the company’s turnover was realised. He also said high duties and tariff on imported raw materials were not healthy for business growth.

    Awode echoed the frustrations of other paint manufacturers, as well as other operators in the manufacturing sector whose businesses have been badly hit by ceaseless bombings by the dreaded Boko Haram insurgents in the north.

    Since 2009, when the crisis started, manufacturers whose businesses are located in the Northeast and Northcentral – the epicenter of the sect’s activities – have been recording unprecedented low turnover. Because of the bombings and kidnappings, manufacturers, including paints manufacturers, are unable to distribute their goods to the affected states in the North, a situation that eats into their profit margins.

    The Nation learnt that many people no longer want to go to the North for any reason, and this is affecting the distributive trade sector of the economy. Operators in the Small and Medium Enterprises (SMEs) sector, are worse hit by this restriction in movement due to their limited space, branch network and available funds. “The tempo of economic activities in the North has declined, access to markets by companies in the South has reduced, resulting in loss of sales; while many enterprises have relocated,” says Lagos Chamber of Commerce and Industry (LCCI) President Alhaji Remi Bello. He lamented that it had become difficult to attract investors because the risk of long-term investments had become enormous.

    The Chamber’s Director-General (DG), Muda Yusuf, also noted that the insecurity  had become a major challenge for investors, stressing that the economy of many of the affected states is on the verge of collapse with implication for investments and job losses.

    Yusuf, while explaining the outcome of an evidence-based account of experiences of members of the Chamber and the larger business community on investment climate in the second quarter of last year, said the challenges of the operating environment for business intensified in the second quarter across all sectors, and there were concerns over weak consumer demand reflecting the downturn in the economy.

    He said while the hospitality industry in the volatile states has been paralysed, many operators, especially SMEs, were relocating to other states with the attendant challenges.

    The DG also said many firms have lost about 30 per cent of their sales, as they could no longer access most part of the northern market. “Our report shows that manufacturing firms sourcing raw materials from the North are facing serious challenges, while projects funded by banks in the affected states are now at risk,” Yusuf said, adding that serious perception problem has been created for the country, as many bank branches have been closed, while sales representatives of many companies have fled the affected states, and many projects under construction in the North abandoned.

    Although Awode expressed optimism for a quick end to the Boko Haram insurgence for business to thrive, his optimism may have been short-lived following the threat of the slide in the naira exchange caused by sharp drop in the price of crude oil. He said that most of the raw materials used in the paint industry are imported.

    “About 70 per cent of our raw materials are imported, while payment for the raw materials is done in dollars. Import duties or tariff are on the high side. These and other challenges are confronting the growth of paints industry,” he lamented.

    The Chemstar GMD is not alone in his lamentation. Chairman of DN Meyer Plc, another major paints manufacturer, Sir Remi Omotosho, decried the trend where over 70 per cent of raw materials for paints and other products’ manufacturing is sourced from abroad despite that some of the raw materials for paints are available locally. He regretted that the drive for local substitution embarked upon in the country in the 1980s was abandoned and replaced in the 1990s by the import syndrome, with people relying heavily on imports.

    Sir Omotosho recalled that the Raw Materials Research and Development Council (RMRDC) was set up to explore alternative sources of raw materials for the local industries, regretting that all of a sudden, RMRDC disappeared from the radar. “That agency ought to be revived,” he told The Nation, in an earlier interview.

    While emphasising that a lot of materials used in the production of goods are available locally, the industrialist regretted that those who should be developing local raw materials would rather go and import them for sell.

    “There is need for the government to get RMRDC back in place in a purposeful, focused manner, visionary in its approach by collaborating with manufacturers to get a lot of the input produced locally,” he insisted, adding that there is need to employ a carrot-and-stick approach in the drive for local substitution. “If you rely on local raw materials, manufacturers will be compelled to contribute to a research fund for that body because we are going to benefit at the end of the day. If, however, you want to rely upon imported raw materials, tariff should be able to take care of that,” he said.

    Indeed, the paints industry is heavily raw materials import-dependent. And for paints manufacturers, already weighed down by skyrocketing cost of production due to dearth of infrastructure, the prevailing high exchange rate is overkill. First, it means that paint makers who borrow to import raw materials will do so at higher interest rates. Secondly, with the naira devalued, paints manufacturers now pay more naira for each unit of goods they import.

    While some of them now find it extremely difficult to finance their import bills, those who manage to do so contend with shrinking margins of profit. The toll is heavier on small scale paint manufacturers.

    According to experts, paint is composed of the following raw materials: pigments, solvents, resins, and various additives. While pigments give the paint its characteristic colour, solvents make it easier to apply. Resins aids dispersion; and additives serve as everything from fillers to anti fungicidal agents. Hundreds of different pigments, both natural and synthetic, exist. The basic white pigment is titanium dioxide (TiO2), selected for its excellent concealing properties while black pigment is commonly made from carbon black.

    Other pigments used to make paint include iron oxide and cadmium sulphide for reds, metallic salts for yellows and oranges, and iron – blue and chrome – yellows for blues and greens and even calcined kaolin, which the Chinese produce and export for the paint industry.

    Most, if not all these raw materials, are imported with huge foreign exchange despite that some of the agents can be produced locally. This was why Omotosho insisted that developing local substitute for imports by reviving RMRDC in line with the local content initiative is necessary if Nigeria must realise her dream of becoming an industrialised nation. “After satisfying her local needs, Nigeria may even export to other countries,” he said, noting: “If we are compelled to rely on our own internal resources I can assure you that those who are importing will begin to see the need to develop local substitute for the imports.”

    He said the government could encourage the drive for local substitution for raw materials through some sort of incentives since the government is mostly affected by the problem of import syndrome. “If we are producing the raw materials here, you know that people will be employed in those outfits manufacturing those raw materials. They will also be paying income tax and a lot of benefits will accrue to government,” he pointed out, adding that by doing so, Nigeria will stop creating employment for others, particularly in a country where the rate of graduate unemployment is very high.

    Besides, the Chairman of DN Meyer said those who are selling to local manufacturers are not producing them here; they import and sell to us.

    “Even when some of them say they have their own factory, they bring the raw materials and add some additives and sell to you. You can still do better than that because some of those basic things they are using to which they add some other agents can be produced here if we are dedicated and organised,” he stated.

    However, raw materials import with its attendant foreign exchange burden is not the only factor responsible for the less than sterling performance of paints manufacturers. Other challenges facing the industry include dearth of infrastructure, especially stable electricity supply, poor road network, multiple taxation, and high import duties and tariff, among others. For instance, almost two years after the privatisation of the power sector, manufacturers are yet to see any appreciable improvement in electricity supply, forcing them to rely heavily on in-house power supply at huge cost. Yet, power constitutes the single critical infrastructure to rev the manufacturing sector and create jobs

    These factors contribute to the high cost of production, which is said to be responsible for the high cost of goods produced locally compared to imported ones. The cheaper price of imported goods is blamed for the penchant of Nigerians to patronise imported goods to the detriment of locally produced goods. This is why many local industries, including paints manufacturers that could not stand the heat of the competition in the same market with imported goods are fast disappearing from the industrial landscape.

  • A tale of woes

    A tale of woes

    For the parties, it was a week of primaries. But the exercise was full of woes for the Peoples Democratic Party (PDP)in Kano, Kwara, Adamawa, Abia, Delta, Kogi, Oyo, Ondo, Rivers, Ebonyi, Akwa Ibom, Cross River, Kogi and Lagos States, among others, it was chaotic at  governorship and assembly primaries. What does this portend for democracy and the rule of law? Lawyers share their views with PRECIOUS  IGBONWELUNDU .

    TO many, it is worrisome that 15 years after the return to democracy, politicians are yet to learn to accept defeat. Politics without rancour remains an illusion. The do-or-die approach to seeking political office has become the norm. Many, are yet to imbibe democratic ethos.

    The desperation to achieve power by all means, fair and foul, was witnessed during the governorship and assembly primaries. It was tales of crises in nearly all the states involving Peoples Democratic Party (PDP) aspirants.
    The All Progressives’ Congress (APC) has however, been exemplary in this respect. In all its primaries, which climaxed with its national convention in Lagos, there were no reports of rancour. But not so for the PDP.

    Tales of violence, deaths, lawlessness, malpractices and protestations greeted the ruling party’s primaries bringing to the fore the desperation to grab power at all cost among the political elite.

    Nigerians watched in awe, as politicians moved against themselves. In some states, stooges replaced ‘preferred aspirants’. In others, the delegates’ lists, a prerequisite for the primaries, simply disappeared.

    In Rivers and Lagos States armed thugs were used to scare away other aspirants and their supporters.

     

    Tales of violence

    In Anambra State, a member of the House of Representatives, Victor Ogene, who sought re-election on the platform of All Progressives Grand Alliance (APGA), dumped the party for APC, after alleging unfair treatment by Governor William Obiano.

    He claimed that the governor had ‘doctored’ the list to favour his preferred candidate.

    Aggrieved party faithful in Abia State claimed the assembly primaries did not take place as preferred candidates’ names were written and submitted to the headquarters. Where primaries were allowed to take place, the accreditation processes were marred with alleged fraud and irregularities to ensure the emergence of an anointed candidate. People alleged that elected and statutory delegates’ lists were tinkered with  since the names were not matched with pictures nor spelt out.

    In Rivers State, 16 aspirants and their supporters have threatened to dump the party over what they termed favouritism and imposition of Nyesom Wike, as dictated by the presidency.

    It was learnt that some of the aspirants led by Tony Princewill and Bekimbo Dagogo-Jack stayed away from the primary because of a pending suit on the outcome of the state congress, which they said was a sham.

    The story was similar in Ebonyi where Governor Martin Elechi, and former Health Minister and governorship aspirant, Prof. Onyebuchi Chukwu with other Elechi’s loyalists boycotted the exercise for want of credibility.

    They kicked against the emergence of Elechi’s deputy, Dave Umahi as the party’s standard-bearer. Elechi threatened to leave the PDP if the situation is not addressed.

    In Imo State, former governor, Ikedi Ohakim, called for the cancellation of the exercise alleging irregularities, bias and compromise from members of the electoral committee. Also, Ifeanyi Ararume cried foul over the emergence of Deputy Speaker, House of Representatives as the PDP governorship candidate. He hinged his grievance on alleged disparity in the number of accredited delegates and ballots cast.

    Like Ararume, Musiliu Obanikoro, former Minister of State for Defence and Lagos PDP governorship aspirant decried what he termed a complete sham and eyesore where the number of votes cast surpassed the number of accredited delegates.

    Obanikoro also kicked against the violence that marred the primaries, accusing one of the leaders of using hoodlums and unlawful means to impose his preferred candidate.

    The situation was no different in Enugu State as two aspirants, Ifeanyi Ugwuanyi and Ayogu Eze laid claims to being governorship candidates following parallel primaries. It was learnt that a disagreement arose between them, on one hand, and the electoral panel on the delegates’ list. The contenders including Prof. Onyeke Onyeke, claimed to be the party’s authentic flag bearer.

    Akwa Ibom, Kwara, and Yobe States PDP had their share of alleged imposition, with 22 aspirants threatening to jump ship in Akwa Ibom for underhand dealings in the primaries that favoured the governor’s anointed candidate, Odum Emmanuel

    It was the same story during the State Houses of Assembly and National Assembly primaries across political parties, including Ekiti where Dr. Ayo Arise accused the governor, Ayo Fayose of doctoring doctoring delegates’ list to favour his candidates.

    In Lagos, four persons were allegedly killed at Apena, Mainland Constituency 1, during the APC House of Assembly primaries following alleged violent protest by supporters of a politician. There were also protests in Ifako/Ijaiye Constituency 2 and Kosofe Constituency 2, among others. In Nasarawa State, police claimed four people died during APC State Assembly primary but a source in the party denied the report.

    Although analysts have described the hue and cries of some of the aggrieved aspirant as ‘bad-losers syndrome’, observers are of the view that the agitations if not properly handled, may sink democracy ship.

    The tensions coming at a time the country is faced with security challenge; congested and perceived corrupt judiciary, economic crunch, among other issues threatening the stability of the country, observers fear political unrest may lead to an overthrow of democratic rule by the military.

     

    Benchmark lowered?

    According to the Independent National Electoral Commission (INEC), the primaries were of low standard compared to those of 2011.

    Cross River Resident Electoral Commissioner (REC), Mike Igini wondered why the delegates’ list, which is an equivalent to the voter’s register, was not made available to all stakeholders, including INEC observers in most cases.

    He said: “The primaries process witnessed so far in the state (Cross River) are far below the standard of 2011 and this is not encouraging. It is strange that list of delegates, which is equivalent of voters’ register that should ordinarily comprise elected adhoc and statutory delegates for the various elections, that ought to be made available to all stakeholders including INEC has become a matter of conjecture and work in process.”

     

    Is the umpire culpable?

    In line with Paragraph 15, Part 1 of the Third Schedule and the Electoral Act 2010 (as amended) INEC under its current leadership, Prof. Attahiru Jega issued regulations for the conduct of political party primaries for the nomination of candidates for various positions.

    Among the rules are that a party seeking to participate in any election organised by the commission must conduct primaries, wherein all eligible members of the party must be given equal opportunity to participate; political parties must not create rules or impose conditions or set high expression of interest or nomination fees that could exclude aspirants on the basis of sex, religion, ethnicity, circumstance of birth or wealth.

    It further stated that no party should set criteria or conditions to pre-qualify an aspirant to contest in its primaries as candidate except such conditions are in line with the 1999 Constitution, the Electoral Act 2010 (as amended), the party’s Constitution, as approved by INEC, as well as the regulations, guidelines and directives of the Commission; and must within 21 days, submit a written communication to INEC primaries the date of its primaries, which must be held either directly or indirectly.

     

    Lawyers speak

    A former Nigerian Bar Association (NBA) president Rotimi Akeredolu (SAN) said the crises would not affect next year’s elections. He added that subsitution of candidates after election may no longer be possible.

    “Such a situation can no longer occur because it has been settled that someone who did not sit for an election cannot be declared winner of a process he did not take part.

    “The rancour was basically in the PDP and it is a reflection of the party. The APC primaries were transparent, free and fair. The aspirants have joined hands with the various candidates who emerged for the good of the party.

    “The crises in the PDP will not affect the system because election the timetable is out, which will be strictly adhered to. If anything, it is the PDP that will be destroyed for its lack of internal democracy. Parties must be honest and have transparent process.

    “Once processes are transparent, participants in a contest will have no reason to deny the result,” he said.

    Chief Emeka Ngige (SAN) blamed the unfortunate situation on INEC, insisting that if the commission had done its job as it should, political parties would have sat up.

    “What is happening is because of the failure of INEC to do its job as it should. The model for primaries was the APC Presidential primary election where all contestants were allowed to participate and at the end of the day, the ballots were counted in public glare.

    “INEC folds its arms and allow parties bridged their own constitution and even the country’s constitutional provision of fair hearing. INEC has not said anything about PDP’s adoption of the President as its sole candidate and so, the governors are following suit.

    “If INEC had given a very strict warning to parties that it would not tolerate unlawful practices in the conduct of primaries, and even go ahead to reject candidates produced through such practices, the political parties would be forced to do the right thing,” said Ngige.

    Constitutional lawyer Norrison Quakers (SAN) stated that lack of political ideology was the bane of the anomalies in elections.

    He attributed the rancorous primaries to the problem of winner takes all, which is not about service but gastrointestinal considerations at different levels.

    “To nip these abnormalities in the bud, well informed and mature electorate must emerge and a truly independent electoral institution put in place. The quest for political office is not about service, but about personal enrichment or financial liberation.

    “These trends will be curtailed, if those who had corruptly enriched themselves in the service of the nation are prosecuted and their ill-gotten wealth forfeited to the state.

    “Disqualification of candidates is not within the purview of INEC but the Court. I believe if the judiciary is allowed to fast track the hearing and determination of disqualification of cases before election for pre-election issues and election tribunals for post election issues, political parties would be careful in nominating and sponsoring candidates for elections.

    “The Police and the DSS should be allowed to screen all candidates for party primaries and any candidate with criminal record or is facing criminal trial or insolvency suit should not be allowed to participate in party primaries. The enforcement agencies should be apolitical and non partisanship,” he said.

    To Edo State Commissioner for Agriculture Abdul Oroh, a lawyer, corruption is the crux of the matter because power seekers do not have the intention to serve.

    He stated that the inordinate quest for political power can only be quelled if the people are allowed to freely exercise their franchise.

    “The road to democracy is hard because rules and procedures are observed more in the breach. If we follow the rules and allow the people to freely exercise their franchise in a transparent environment, rancour and will be removed and the process will gain legitimacy.

    “Corruption is at the heart of this inordinate quest for power because public service is now basically the great wealth. If the intention of power seekers is to serve the people and the nation, there is likelihood that the rule of law would be respected and accepted. The case is worse in PDP because most of its members believe once you’ve gotten the nomination you will be elected either by hook or crook.

    To Lagos lawyer and activist Theopilus Akanwa, the practice of anointed candidates should be discouraged and ‘godfatherism’ completely eliminated in the nation’s polity.

    He said: “The idea of anointing a candidate over the other aspirations by the sitting governors are the major causes of the crises. Godfatherism also plays a serious role in the crises. The idea of anointing a candidate over others should be avoided as such an anointed candidate may not be the choice of the people.

    “Let the will of the people be supreme. The attractions attached to political offices should drastically be reduced to avoid the do or die approach. Politicians should be made to understand that they are servants of the people.”

    Former NBA Ikeja Chairman, Monday Ubani, said the PDP primaries, particularly in the southern part of the country, questioned the party’s internal democracy and exposed the absence of the rule of law.

    “No one gives what he or she does not have. Democratic practices and observance of rule must start from the political parties which is the foremost institution in any democracy. Unfortunately after 15 years of return to democratic rule, we seem to have learnt and imbibe nothing as people who are in democracy.

    “I monitored PDP primaries all over the country, especially that of Abia where I come from, and my findings and conclusions are that the political elite are not ready to do Nigeria and Nigerians any good, rather, what motivates and rules over their lives is self; how much they can grab and steal from Nigeria’s treasury as a conquered territory. Their devilish plans start from congresses through which delegates for the primary elections are elected. The governors or the godfathers in places where the state is not controlled by them do not allow elections to hold at the wards or at the states.

    “I am not surprised with the hullabaloo that greeted the outcome of these primaries because the party has murdered internal democracy and they will not dare to sleep until they put their house in order. The most grievous of them all is that PDP national office did set up an Appeal Panel that  receives appeal from aggrieved candidates but deliberately do not attend to such petitions, yet they will punish any member who goes to court for a redress of the injustice on the ground that such a member has not exhausted the internal dispute resolution mechanism, when they know that such does not exist.

    ‘‘The desperation must be nipped in the bud if we want to make progress. The party must make a conscious effort to enthrone transparency in the process. All the lapses enumerated above are the handiwork of the party and, most times, they are allowed deliberately to ensure the emergence of their preferred candidates who most of the time may not be acceptable and credible. It is a costly act for them unless they correct themselves before the national election.”

     

  • Northern leaders responsible for North’s woes, says Shehu Sani

    Northern leaders responsible for North’s woes, says Shehu Sani

    Northern leaders are responsible for 70 per cent of the North’s woes, President of the Civil Rights Congress Comrade Shehu Sani said at the weekend.

    He said the President Goodluck Jonathan administration was responsible for the remaining 30 per cent of the region’s problems.

    Sani spoke in Kaduna when he visited unpaid workers of the closed Kaduna Textile Limited (KTL).

    He said northern leaders had the opportunity to industrialise the region but failed to do so when they were at the helm of affairs.

    The activist said the North could live without oil revenue, if it revived textile industries and agriculture, and invested in solid minerals, adding that the possibility of exploring oil from the North is “indispensable”.

    He said: “The northern part of Nigeria has been destroyed 70 per cent by northern leaders and 30 per cent by the Jonathan administration. Northern leaders had the opportunity to industrialise, educate and uplift the region, but they have left behind a region that is backward and whose future is in doubt.

    “For over three decades when northerners were in power, they used the opportunity to empower traditional rulers and make the rich richer. But what is very clear is that northern Nigeria can live without oil revenue. What it needs are political leaders, who understand the reality of change that is fast taking place in Nigeria and the world, and the need to harness the resources of the North for the development of its people.

    “It is time for northern political leaders to sit down and devote more energy to the economic revival and empowerment of the region as much as they devote energy to the political future of the rich.

    “The textile industry has been destroyed by years of neglect by successive governments and political leaders in the North. Northern Nigeria has a lot to deliver to its people. The need to revive the textile industries and agriculture, invest in solid minerals and the possibility of exploiting oil from the North is indispensable.”

  • Eagles’ woes not Keshi’s fault – Babangida

    Eagles’ woes not Keshi’s fault – Babangida

    Ex-International Tijani Babangida has  thrown his weight behind caretaker Super Eagles boss, Stephen Keshi after he came under heavy criticisms for the poor outing of the team so far in the AFCON qualifiers.

    The Super Eagles lost to Congo Brazzaville at home and struggled to a stalemate against the Bafana Bafana of South Africa and while angry words were aimed at the Delta State born coach but Babangida thinks the problem is the NFF’s inability to settle Keshi’s contract.

    “The thing is that Keshi is affected by the NFF crisis and his contract is not yet resolved.

    “But the player has no excuse as they’ll receive their allowance and at the end of the day most of them are based abroad. So, it’s Keshi that is feeling the heat more and you don’t expect him to pretend all is well without it affecting his job,” the former Ajax winger told Brilafm.

    Nigeria will play Sudan in their next two fixtures as they make up grounds on South Africa and Congo Brazzaville who has 4 and 6 points respectively.