As much as we begin to see the need for a change, a critical success factor for lasting growth and development would be how healthy our societies are.  This is so critical and has been an aspect Africans and most people who preach change, have neglected. Our minds in this part of the world have been contaminated strongly with religious beliefs, traditions and culture, family and social backgrounds, etc. which have shaped our behavioural traits, sense of value, drive for excellence and ultimately, our perception towards relationship, marriage, parenting and economic renaissance.

We see no connection with how our backgrounds, lives and personalities shape our minds, attitudes and the change we want to see. We could be more likened to be a clean glass of water at birth and over time as we grew, we gave ourselves to various religious beliefs, family and social influence. We got our water stained and mixed with sand. We have grown overtime becoming unconscious of ourselves and carried away with the need for change that we forget to solve our own problems, challenges in our families and those around us.

“Leadership and change in the 21^st century is most effective, when we triumph in the place of personal leadership”                                                                                                                            -OBELE GOSPEL

We need to revisit our childhood, background, temperament and behavioural traits, how they came about and genuinely decide what future we want in order to reposition ourselves appropriately.

 Simply put, we need PERSONAL TRANSFORMATION.

“There can only be a new Nigeria when we have new Nigerians”                                                                                             - Sam Adeyemi

Please ponder on these things;

1.    What traits have we picked from our parents (trans-generational heart transfer), families and societies that have shaped us and how truly have these perceptions impacted on our parental skills (in the 21st century) and ability to be award winning spouses?

2.    How well do we understand our roles and as men and women in Nation building?

3.    How ready are we to help secure our generation?

4.    How true and intense is our passion for change?

Life in the 21^st century and its demands have redefined the roles of the male and the female respectively, in order to have more functional adults, stronger families, healthier societies and greater economies.

 “A dysfunctional child cannot become a functional adult”.                                                                                                      - Kay Akhigbe II

“There exists a nexus between functional adult, stronger families, healthier societies and sustainable economic renaissance”                                                                                                         - Obele Gospel

As an organisational and economic development strategist, I have realized, we must embrace this “shift” for sustained impact. It’s first within and then without. Personal transformation precedes national and continental transformation. We need individuals who will take up the responsibility in ensuring that we are healthy physically, mentally, emotionally, and psychologically and spiritually to become functional adults, acquire skills for parenting in order to secure our generation, build strong families and healthier societies which would add up incredibly to sustain growth and development.  

Have a great week ahead. You will succeed!

Obele Gospel is the CRO- Project Change Initiative (PCI), A 21^st Century Organisational and Economic Development Strategist.                                               

For comments, visit OBELE Jesuite on facebook or @OBELEObele on twitter and contact him at Gospel_obele@yahoo.com and 08130070991.                                                    

             

Mrs. Ayodele Jaiyesimi, Head, Human Capital Management and Development, First Bank

The First Bank of Nigeria has emerged the winner of the 2013 Human Resource Best Practice Award of the Chartered Institute of personnel Management of Nigeria (CIPMN). The award instituted about two years ago by CIPM is aimed at rewarding excellence in human resource management and promoting best practices in human resource management in firms and organisations.

The award was presented at the 45th Annual Conference of CIPM holding at the International Conference Centre, Abuja. This is the second time Mrs. Ayodele Jaiyesimi, the Head, Human Capital Management and Development, First Bank would be receiving the award on behalf of the bank. The ongoing 45th annual conference of CIPM has the theme " Evolve and Excel" and is aimed at providing the platform for Human Resource Practitioners to understand the dynamics of the profession, adapt and achieve personal and organisational excellence.  

Last week, we examined briefly the challenge facing the African student in an ever changing world. Before I start up, it is important to note that:

• The expected budgetary allocation by developing countries for education is a minimum of 26% as prescribed by UNESCO but countries in Africa  e.g. Cote D’Ivoire currently allocate 14% while Nigeria still struggles to attain 8.7% annually.

• In the 1970s and 1980s, the classroom used to be at par with the workplace. That is, academic curricula were enough to meet workplace demands.  This was before the fall of the Berlin wall, but currently the workplace stands far above what the classroom offers.

• 93% of girls in the north do not have access to secondary education.

A research showed that four hundred hiring executives of major Corporations were asked “Are students graduating from school ready for work?”. The executives collectively answered – “Not Really”

The study showed that students graduating from Secondary Schools, Technical Colleges and Universities are solely lacking in some basic skills and a large number of applied skills such as;

- Oral and written Communication -      Applying technology

- Critical thinking and problem -      Leadership and project management

- Professionalism and work ethics

- Teamwork and collaboration

- Working in diverse teams

These reports confirm that the “21st Century Skill Gap” is costing businesses a great deal of money. Some estimate that well over $200 billion a year is spent worldwide in funding and hiring scarce, highly skilled talent, and in bringing new employees up to required skilled levels through costly training programs. As budgets tighten further in tough economic times, companies need high competent employees, ready to hit the ground running without extra training and development costs.

The competitiveness and wealth of corporation and countries is completely dependent on having a well-educated workforce. Improving a country’s literacy rate by a small amount can have huge positive economic impact.

Educating the girl child, is a major solution to most developmental problems faced by third world countries.

- United Nations.

Education and human Capital development primarily play important roles on Society’s’ evolving stage.

• It empowers us to develop or personal characters, talents and skills.

• To build stronger families, healthier societies, which add up incredibly to sustained growth and development.

• Contribute to work and fulfillment of civic responsibilities.

• Carry our moral and cultural values forward.

As much as we are critically challenged with the African Educational System and the emotional and mental well being of most students, we must kick the change we desire for the sake our future families, society, work life and economy.

African Youths (students) must rise above this current state of mediocrity around us, above what lecturers, ministers, and the world at large has called us. Please take the bull by the horn, because our generation must pay the sacrifice for change. We must grow beyond the restrictive walls of the University system, develop ourselves with the requisite skills and tool sets for change and invest aggressively in our up growth to become globally competitive.

Education starts outside the classrooms.

Let’s get back to the drawing board and change the game plan.

You will succeed!!!

Obele Gospel Jesuite is the Chief Responsibility Officer- Project Change Initiative (PCI), and a proud 21st century development economist. He can be reached at 08130070991, Gospel_obele@yahoo.com

Managing Director of the Nigerian Sovereign Investment Authority (NSIA), Mr. Uche Orji

  Earmarks 32.5% for infrastructure • To make returns to govt after 5 years
                                   
Managing Director of the Nigerian Sovereign Investment Authority (NSIA), Mr. Uche Orji, has said that the authority was looking at investing in Monoline insurance, securities, health and aviation sectors of the economy.

Speaking at the Security Exchange Commission (SEC) Eminent Speakers' Series held in Abuja on Friday, he also explained that each of the components which makes up the Sovereign Wealth Fund (SWF), including Stabilisation, Infrastructure and Future Generation Funds, would have to be operated profitably for five years before returns by way of dividends could be made into the federation account for the three tiers of government to share.

The NSIA boss said already questionnaires were being sent to domestic managers for the various asset classes with domestic component.

Specifically, he noted that in the health sector, investment was being considered in the area of establishment of diagnostic centers which according to him had been found to have good returns.

In the aviation sector, he said the plan would be to help airlines have leasing opportunities to allow them access to new aircraft, adding that this had been a major challenge in the industry.

Speaking on the topic: "Sovereign Wealth Fund and the Nigerian Capital Market ... Joining the Dots", Orji said ideas were still being developed for investment in the Monoline insurance to ascertain its viability in the country.

Stating that the monoline insurance option had been found to be highly successful in the United States, Indonesia and other parts of the world, he said the sector remained: "One of the best market ideas we have seen so far is the creation of monoline insurance. Now, we have to appoint somebody to go and develop the idea and get investors and see how that works."

NSIA boss however noted that even though there were plans to invest in private equities within and abroad, not a lot would be invested in the capital market for now because it does not presently have enough funds at its disposal.

While noting that investment in securities would grow over time, Orji further stated that about 32.5 per cent of the overall fund would be invested in Infrastructure within the country.

He said: "We believe securitisation is the way forward. We would like to invest in bonds:
If we can't issue bonds then let's invest in bonds."

In her remarks, the Director General of SEC, Ms Arunmah Oteh, said the NSIA presented an opportunity for the commission to solidify their partnerships given that the former is a key institutional investor in the capital market.

She said: "I think the approach they've taken is what is important. What they want to do is ensure that every dollar that they put in brings in other dollars: working on preparing projects better so that they also make sure the projects are profitable-these are things we find very unique. So this is something we are very supportive of because we think it's a way to enable the capital market to support infrastructure."

The SEC Series is an intellectual platform through which SEC personnel engage frontier developments in the Nigerian economy and society as well as the champions of these developments.
- Thisday

London Stock Exchange

(Bloomberg)

The U.K. economy is heading for its fastest expansion since the onset of the financial crisis, economists said as they upgraded their forecasts for growth through 2015.
Gross domestic product will rise 1.3 percent this year and 2 percent in 2014, compared with predictions of 1 percent and 1.7 percent previously, according to the median of 48 economists in a monthly survey by Bloomberg News.

That pace of growth for next year would be the fastest since 2007, before the start of a slump that has left output more than 3 percent below its peak.
For Bank of England Governor Mark Carney, the question is how quickly this recovery can lower the country’s unemployment rate after he introduced forward guidance last month and linked the jobless rate directly to the policy stance.

That measure hasn’t yet been effective, according to more than two thirds of economists in a separate survey.
“The consensus forecast has moved a long way very, very quickly,” said Jens Larsen, an economist at RBC Capital Markets in London and a former BOE official.

“If you get a very powerful recovery, the arguments for guidance, for the extended period of low rates, just look so much weaker. It’s a bit of a communication challenge.”
The economists in the Bloomberg survey see GDP growth accelerating to 2.4 percent in 2015.

Consumer spending will rise 1.6 percent this year and in 2014, while exports will increase 1.8 percent and 4.7 percent.
Guidance Framework
Bloomberg reports that under its so-called forward guidance, the nine-member Monetary Policy Committee has said it won’t consider raising the benchmark interest rate from a record-low 0.5 percent until unemployment falls to 7 percent, which they don’t see happening until late 2016.
That projection is being challenged by recent data, and economists are more optimistic, with 19 of 31 forecasting that it will fall below the threshold before 2016.
Data this week showed the unemployment rate fell to 7.7 percent in the three months through July from 7.8 percent in the second quarter.

The labor-market report also showed that jobless claims in the past two months have fallen by the most since 1997.
Government figures today showed construction output, which accounts for 6.3 percent of the economy, climbed 2.2 percent in July.

In the second quarter, new building orders surged almost 20 percent from the previous three months, boosted by demand for homes as well as wind turbines and solar farms. Overall housing orders between April and June were the strongest since the fourth quarter of 2007.
Difference of Opinion
BOE policy makers say productivity will pick up as the economy recovers, meaning companies will get more output from their existing workers, which will limit the pace of hiring.

Carney said yesterday that a difference of opinion between the central bank and other forecasters is “natural.”
“The market had a more positive view of the rate at which unemployment will come down and a more pessimistic view of productivity,” he said at a hearing of the Treasury Committee, a panel of lawmakers that scrutinizes the BOE.
Economists’ more positive outlook for the U.K. follows economic growth of 0.7 percent in the three months through June as well as a continued strengthening of services and manufacturing this quarter.
- Thisdaylive

Oil Spill

About 11,000 fishermen and others from Bodo community, Gokana Local Government Area of Rivers, who lost incomes when a pipeline belonging to shell burst in 2008 have rejected a £30 million (about N7.5 billion) or around £1,100 compensation offer for each person affected by the oil spill.

Martyn Day, a partner with the UK law firm Leigh Day who represented the Bodo people during the negotiation, told British newspaper, The Guardian that Shell's offer was rejected unanimously at a large public meeting in Bodo.

"The amount offered for most claimants equated to two to three years' net lost earnings whereas the Bodo creek has already been out of action for five years and it may well be another 20-25 before it is up and running properly again. I was not at all surprised to see the community walked out of the talks once they heard what Shell were offering."

Day said Bodo people unanimously rejected the compensation calling it "an insult", "cruel" and "derisory".
With the rejection of the compensation offer, a London court is now likely to decide how much the giant Anglo-Dutch company should pay 11,000 fishermen and others from the Bodo community who lost their income when the 50-year-old Shell-operated Trans Niger pipeline burst twice within a few months in 2008-09.

Shell, which took a top London negotiating team including a barrister, a QC and other legal experts to the negotiations, had indicated that it wanted to be fair, saying: "We have an interest in sensible and fair compensation being paid quickly to those who have been genuinely impacted by these highly regrettable spills."

A spokesman said: "We took part in this week's settlement negotiations with two objectives – to make a generous offer of compensation to those who have suffered hardship as a result of the two highly regrettable operational spills in 2008, and to make progress in relation to clean-up."

The company said it was disappointing that no agreement had been reached on compensation, but progress had been made in discussions about the clean-up process. Shell, which works in a partnership with the Nigerian government, had maintained that it had not been able to clean up the spills because the affected Ogoniland communities had insisted on getting compensation first and would not allow it access to the affected areas.

The spokesman told The Guardian: "Of course, the success of any interim measures and final remediation depends on the cessation of oil theft and illegal refining in the area, which re-impacts the environment and remains the cause of most oil pollution in the Niger delta."

Philip Mshelbila, Shell Nigeria’s head of communications, said: "One positive from the talks is that the Bodo community has indicated that the clean-up needs to start as soon as possible. I understand that an offer was put. We are very willing to take part in talks about the clean-up."

"Shell continues to treat the people of Bodo with the same contempt as they did from the start when they tried in 2009 to buy us off by offering the community the total sum of £4,000 to settle the claims," said Chief Kogbara, chairman of the Bodo council .

"We told them in 2009 the people of Bodo are a proud and fiercely determined community. Our habitat and income have been destroyed by Shell oil. The claim against Shell will not resolve until they recognise this and pay us fully and fairly for what they have done," Kogbara added.

Chief Tal Kottee, Bodo elected regent, said: "We had been expecting a good settlement from Shell. Our livelihoods here have been totally destroyed. It's an outrage that it has taken so long for a clean-up and to get compensation."

Chief Patrick Porobunu, leader of a Bodo fishing community, said: "Shell is cruel, very wicked. It has given us nothing again. People here are very angry. All we have is poverty because of Shell. We have no electricity, no health. Our suffering goes on."

International and regional groups condemned Shell, which is the largest company on the London stock exchange with a market capitalisation of £140.9bn, for what they called its "meanness".
Groups accused Shell of financial racism and applying different standards to clean-ups in Nigeria compared with the rest of the world.

"Is it because we are Nigerian and poor that they offer so little for the damage they have caused?" said one fisherman at the Bodo meeting. "This would be different in the US or London."

"Crude oil is the same in every country. Does the black man not also have red blood?" said another.

"It is a big shame on Shell that they are unwilling to pay a fraction of their profit as compensation after subjecting the people and the environment to such unthinkable harm they would not dare allow in their home country," said the Nigerian environmentalist and chair of Oilwatch International, Nnimmo Bassey.
- Thisday

Primate of the Church of Nigeria, Anglican Communion, Most Rev. Nicholas Okoh

Primate of the Church of Nigeria, Anglican Communion, Most Rev. Nicholas Okoh, has called for the disbandment of the national body of the Academic Staff Union of University.

He described the methods adopted by ASUU as immoral and self-enrichment.

Okoh spoke in Yenagoa, Bayelsa State, on Thursday, during the Standing Committee Meeting of the Bishops Conference of the church.

He   said, “The government should find a way either to privatise the universities or get ASUU to be limited to individual universities such that there will be no national ASUU body mandating even institutions without grievances to go on strike.

“There is no such body anywhere in the world. Challenges facing any institution should be treated locally without involving others.

“While the ASUU strike lasts, university lecturers are busy teaching in private universities (most of which lack lecturers) and earning money and when the strike is over, they will still be paid for the period of the strike.

“This is highly immoral and must be discouraged.”

He commended the strides of President Goodluck Jonathan in the areas of road network, turn around maintenance of airports, railways and power supply.

As a short term measure, Okoh urged government to accede to the demands of ASUU, describing the academic, moral and social implications of the strike as enormous.

He cautioned politicians about working for external detractors who had earlier predicted the disintegration of Nigeria in 2015.

He urged the Independent National Electoral Commission to ensure honesty and transparency while discharging its responsibility to the nation.

“INEC should rise above regional, ethnic, religious partisanship and deliver to Nigerians, the truth, the whole truth and nothing short of that,” Okoh said.

The cleric insisted that despite the ongoing power-play, leaders must maintain the unity of the country.

He appealed to the youths to avoid violence and other political vices while taking part in politics ahead of 2015.

Okoh said, “We make a sincere appeal to politicians as they plan, disagree, challenge one another and engage in high political maneuvering, to ensure that the entity called Nigeria is spared from harm.

“We should not walk into the traps of our external detractors who had already predicted a break-up of the country in 2015.”

“We appeal to our youths to take part in politics but steer clear of political thuggery. You should not allow yourselves to be used for assassination, arson, kidnapping, maiming, looting, intimidation of opponents.

“Don’t die for any political party or any candidate because Nigeria needs you tomorrow.”

- The Punch

Managing Director and Chief Executive Officer of Guinness Nigeria Plc, Mr. Seni Adetu

The Managing Director and Chief Executive Officer of Guinness Nigeria Plc, Mr. Seni Adetu, has expressed his confidence in the nation’s economy, noting that it holds bright prospects for investors and other stakeholders.

Speaking at the Annual General Meeting of the National Institute of Marketing of Nigeria, NIMN, in Lagos, the Guinness boss said that  the the fundamentals of the nation’s economy looks bright with over 60 percent of her population belonging to the age bracket of 20s.

He noted that the world is witnessing a changing lifestyle, with consumers becoming increasingly choosy and brand-led. This he, noted, creates a big challenge for the marketing group since this has made it imperative for them to be innovative to be able to meet the changing tastes of the consumers.

‘Marketers must be ready for a whole lot of challenges; consumers’ lifestyles are changing. Regulatory framework is getting more intrusive, but a marketer should know how to behave in this changing world, since marketing is critical to growth. He must be ready to think out of the box,’ he stated.

The Guinness boss also advised marketers  on the need  to have a deep knowledge of  consumers’ wants  and  the imperative of  adopting new strategies and innovation to enable them make a success of their career.

He argued that one of the ways marketers would be able to unleash the power of marketing is by constantly investing in their growth. This, he added, would enhance their movement to the top of the organisation’s leader.

‘Gone are the days when marketing professionals were finding it difficult getting their ways to the chief executive seats. Today, the numbers of marketing professionals, who are chief executives, are growing. In Diageo, the parent company of Guinness, 80 percent of its chief executives come from the marketing community,’ he stated.

This, he however added, would not be achievable if marketing professionals failed to invest in their growth and position themselves for such opportunities.
- The Vanguard

DHL has said that the United Kingdom and United States  accounts for about 37 per cent of its export from the country and Nigeria is the second largest market in Sub-Saharan Africa.

Speaking at a briefing, Managing Director, DHL Express Sub-Saharan Africa, Mr. Charles Brewer, noted that Nigeria is closely behind South Africa and the sub-Saharan region is currently the fastest developing one globally.

Great Britain has 21 per cent of the export of DHL products from the country, United States 16 per cent, South Africa 5% and  Canada 5%.

For the inbound products, United States 28 per cent, Great Britain 21 per cent, Germany 7%, France 6% and Italy 7%.

The products that DHL moves include documents 43 per cent, non-documents 12 per cent – mainly oil tools, aircraft spares and samples; import express 12 per cent – mainly IT equipments, machinery and spare parts; other products – 33 per cent. Brewer stated that Nigeria is seen as strategic business hub for DHL in Africa and the small and medium enterprise (SME) is the engine for growth for Nigeria.

He also affirmed that the take-off point for Africa and its vast potentials lies in the big opportunities in the SMEs and DHL is ready to assist and empower the SMEs in the country.

According to him: ”Nigeria is an attractive market for us and, with a population of over 160 million and a GDP growth rate of 7% presents a major opportunity. The opportunity is for us is to expand our footprint within the country and service semi-urban and rural areas so that anyone – from a student to a small business – can access our network.

“And the over 220 countries and destinations that we serve. There are hundreds of SMEs in Nigeria and we need to provide easy access and a team of highly trained Certified International Specialists to lead them to the very obvious opportunities that trading with the world can present.

“Despite the current global economic uncertainty, DHL expects the African region to deliver. As we see the continent ‘surge’ as a result of sector investment, increased consumer spending and economic activity, the future is still bright for the continent. DHL is committed to becoming their provider of choice and as part of that journey we will provide even more access points across Nigeria.

Apart from the expansion of its retail footprint, Brewer’s other priority is around people development and employee engagement are the key to sustainable development.
- The Vanguard

CBN Governor, Sanusi Lamido Sanusi

The Central Bank of Nigeria, CBN, said that deposits from some government institutions are excluded from the reporting of public sector deposits in line with its circular to banks operating in the country.

The institutions are: Asset Management Corporation of Nigeria (AMCON), Bank of Industry (BoI), Nigerian Export-Import Bank (NEXIM),Federal Mortgage Bank of Nigeria (FMBN), Bank of Agriculture (BoA), ,Bank of Infrastructure, Closed Pension Funds belonging to government institutions, state pension Boards, governments staff associations and cooperative societies.

The CBN states, “Following the issuance of our circular ref: BSD/DIR/GEN/LAB/06/034 and dated 25th July 2013 on the review of the Cash Reserve Requirement for Deposit Money Banks( DMBs), it has become necessary to provide further guidance on the reporting requirements.

“It would be recalled that in our circular under reference, DMBs were required to report government deposits as additional memorandum items in their Monthly Bank Return/Daily Bank Return (MBR 300/DBR 300) on e-FASS. Subsequent to the above, all DMBs are requested to note that, for the purposes of reporting in accordance with the provisions of the above circular, public sector deposits should include all Federal Government MDAs and companies, state government MDAs and companies as well as local government MDAs and their companies.

“Furthermore, for the avoidance of doubts, deposits from the following institutions should be regarded as public sector for this purpose: NNPC Joint Venture accounts; Sovereign Investment Funds; Government MDAs/Companies’ Collection Accounts such as: Customs, FIRS, etc; Pilgrim welfare Board; All accounts belonging to Government Universities.”

Also, the CBN have berated banks for not disclosing credit granted to their board members and employees.

The apex bank disclosed this in a circular signed by Director of Banking Supervision, Mrs Tokunbo Martins, titled “Reporting of All Credit Facilities of N1 million and Above in the Credit of Risk Management System”.

According to her, the Central Bank of Nigeria has observed with dismay that banks do not report the credit facilities availed to their board members and staff in the Credit Risk Management System (CRMS). For the avoidance of doubt, the CRMS, which is a central database for credit information on borrowers, established by the CBN Act No. 24 of 1991 [Sections 28 and 52] as amended made it mandatory for all banks to render returns to the CRMS in respect of all credit facilities of N1 million and above. Thus, the credit facilities availed to board members and staff of banks are not exempted.”
- The Vanguard

Chairman, House Committee on Finance, Hon. Abdulmumin Jibrin

The House of Representatives Committee on Finance Wednesday said it would soon commence a comprehensive amendment to the Fiscal Responsibility Act 2007.

As part of the proposed amendment, the Committee resolved to expand the current schedule of the Fiscal Responsibility Act to include all Ministries, Departments and Agencies (MDAs) of government operating in the country.

The Chairman, House Committee on Finance, Hon. Abdulmumin Jibrin, disclosed that the expansion of the schedule was meant to ensure that all the MDAs that generate one form of Internally Generated Revenue (IGR) or the other were captured and such revenues remitted to the Consolidated Revenue Fund (CRF).
In specific terms, the Committee decided to amend Section 22 of the Act to put the various MDAs in different categorisations for the purpose of revenue remittance. The first category would include agencies expected to remit 100 per cent of their IGR, and the second category would remit 25 per cent of their gross IGR.

Similarly, the third category would be expected to remit 80 per cent of operating surplus while the fourth group includes agencies with special cases that would be required to remit dividends, Public Private Partnership (PPP) proceeds and others, as may be determined by the Ministry of Finance in conjunction with the Fiscal Responsibility Commission.

Jibrin explained that the Committee plans to list under each categorisation, all federal government’s MDAs to avoid ambiguity in the exercise.

He said all MDAs would be expected to disclose to the Committee all partnerships they may have with the private or public sector and indicate their respective business arrangements such as equity, debt or management contract.

“Failure of any MDA, MDA joint venture or MDA partly owned enterprise to be captured in this exercise will be deemed to be a deliberate act of suppressing government revenue. Civil society and the general public are invited and encouraged to forward to the committee any information in respect of the internal revenue generation in any agency,” Jibrin said.
- Thisday

CBN Governor, Mallam Sanusi Lamido Sanusi

The Central Bank of Nigeria (CBN) Wednesday said it would severely sanction banks that do not report credit facilities of N1 million and above availed to their board members and staff members.

The central bank gave the warning in a letter titled: ‘Reporting of all Credit Facilities of N1 million and above in the Credit Risk Management System (CRMS)’, addressed to all banks.

The letter, dated September 10, 2013, signed the Director of Banking Supervision, CBN, Mrs. Tokunbo Martins, was posted on the apex bank’s website. It expressed dismay that banks do not report credit facilities availed to their board and staff members in the CRMS.

According to the central bank, the CRMS, which is a central database for credit information on borrowers, established by the CBN Act No. 24 of 1991 (Sections 28 and 52) as amended, made it mandatory for all banks to render returns to the CRMS in respect of all credit facilities of N1 million and above.

Therefore, it stressed that the “credit facilities availed to board members and staff of banks are not exempted.”

“Please note that the provisions of Sections 3.4 and 3.5 of the Prudential Guideline for Deposit Money Banks in Nigeria, July 2010, does not preclude banks from reporting credit facilities availed to its board members and staff in the CRMS.

“Banks are therefore required to report all credit facilities (principal plus interest) of N1 million and above availed to their board and staff members in the CRMS as well as regularly update these credit facilities on monthly basis. This Circular serves as a reminder and warning to all banks as any observed breach will attract severe sanctions,” it explained.
- Thisday

Party faults FG over ASUU strike
The All Progressives Congress (APC) has urged Nigerians youths to position themselves to be part of the affairs of the party and to possibly contest for its presidential ticket.

The move to woo the youths came as the party yesterday condemned what it described as the federal government's insincere and amateurish handling of the strike, which has paralysed academic work in public universities in the country for the third month running.

Addressing representatives of the party's youths wing at the secretariat in Abuja, the National Deputy Chairman  (South), Senator Annie Okonkwo, said the APC was a platform through which Nigerians youths could actualise the political ambition and to contribute to the transformation of the country.

"I believe that APC is the right place for the youths to actualise their ambition  and because the party believes strongly in internal democracy, I may not be surprised if the youths aspires for the presidential candidate of APC in 2015.”
Speaking in similar vein, the  interim National Secretary, Alhaji Tijani Tumnsa, challenged the youths to harmonise their views and come up with a proactive agenda for participation within the polity.

"I implore you to develop an  agenda that will be useful to the political and economic development of the country. The APC as a party is a platform that you can utilise to achieve your political ambitions and I am hoping that at the end of your meeting there will be a framework to engage the youths.”

Tumsa said where the youths fail to articulate their political agenda properly and pursue them, they would not be respected, stressidng that the first step towards  participation was for the youths in the party to organise themselves properly

The APC Youth leader, Abubakar Lado Suleija, said the party is already making waves across the country with about 4,000 youths from other parties in Kano, Maidugiri and Kaduna declaring interest to join APC.

Meanwhile, APC has condemned the federal government's handling of the strike that has paralysed academic work in public universities in the country for the third month running.

In a statement issued yesterday by its interim National Publicity Secretary, Alhaji Lai Mohammed, the party said the tepid and half-hearted way the government has handled the strike has shown that it does not place much premium on education, which is the path to national development.

It said there was no better indication of the government's disdain for education than the fact that the Jonathan administration had continued in its profligate ways even as students caught in the web of the strike remained at home when they should be engaged in serious academic work.

APC said since the strike started, the Jonathan administration had thrown at least two mega, money-guzzling dinners in Abuja, perhaps the best example of the aphorism 'Nero fiddling while Rome burns'. In one of such frivolities, the President and his party folks feasted joyously at a post-PDP convention dinner even as hapless students were bemoaning their fate over the strike.

The party said it was also in the midst of the strike that the First Lady organised the so-called peace rally that brought hundreds of unsuspecting women to Abuja.


''Yet, some ministers had the temerity to insult the sensibilities of Nigerians by saying the government will shut down if it meets ASUU's demand. What an affront! They did not say Nigeria will shut down when the country paid out 3 trillion naira in non-existent fuel subsidies; they did not say Nigeria will shut down over the N1 trillion spent in the last eight years on less than 500 people; they did not say Nigeria will shut down due to federal government monumental profligacy, which includes spending billions of naira to pamper ex-militants, some of whom are now so overfed that they are threatening the country's very existence!

APC also said the fact that the strike had persisted despite the president’s directive, widely reported by the media, to the federal government’s negotiating team to do everything possible to end the strike, says a lot about the administration's credibility.
- Thisday

President Goodluck Jonathan

The policy provides the needed coordinated and comprehensive framework for multi-sectoral action against the worst forms of child labour in Nigeria.
The Executive Council of the Federation (FEC) on Wednesday adopted a draft policy on Child Labour to address the challenges faced by over 6 million Nigerian children involved in child labour.
This was disclosed by the Minister of Labour and Productivity, Chukwuemeka Wogu, while briefing journalists on the outcome of the Council meeting presided over by President Goodluck Jonathan.
Mr. Wogu said he presented the draft policy to the FEC to address the prevalence of child labour which undermines national development and provides a reservoir of children for easy recruitment into violent act.
He said the policy, which was adopted for implementation, was developed through a wide consultative process which had involved all the relevant sectors of the economy. He said the sectors included governments, labour unions, employers’ associations, civil society and faith based groups.
“The National Policy on Child Labour will provide the needed coordinated and comprehensive framework for multi-sectoral action against the worst forms of child labour in Nigeria,’’ he said.
The Council also approved the ratification of the Constitution and Cooperation Agreement establishing the West African Science Service Centre on Climate Change and Adapted Land Use (WASCAL).
The memo was presented by former Minister of Environment, Hadiza Mailafia, before she was relieved of her position as minister, alongside eight others.
Briefing correspondents on the agreement, the Minister of Information, Labaran Maku, said WASCAL is a German Government initiative for pursuit of research on climate change and sustainable land management.
Mr. Maku said WASCAL works in partnership with local experts and institutions in Africa.
He said the Federal Universities of Technology in Akure and Minna were selected as competent centres to run Phd and Msc programme respectively under the initiative.
He said WASCAL has entered implementation phase following the signing of the cooperation agreement and WASCAL constitution by the concerned ministers.
“Because Nigeria stands to benefit scientifically and socio-economically in the WASCAL programme, Council approves that Nigeria ratifies the cooperation Agreement and the Constitution establishing WASCAL.
‘The Council directed that other necessary processes be initiated by the Attorney-General of the Federation and Minister of Justice towards the ratification of this Treaty and its domestication,’’ Mr. Maku said.
- Premiumtimes

Publisher/Editor-in-Chief of Journal magazine, Prince Cookey, has tasked the Federal Government to float N100 billion bailout funds for the media industry to support operators in the industry and safeguard jobs of journalists and other professionals in the industry.

Cookey, who said this at the 5th Anniversary Lecture/Awards of the magazine in Lagos, noted that the media industry remains a critical component of the Nigerian society, especially in a democratic dispensation.

“It is important to note that before, during and after independence, and even now, the media industry has continued to play crucial roles in sustaining the Nigerian dream. If other sectors deserve bailout, the media industry deserves it even more,” he said.

He noted that the global financial meltdown led to the death of many media organisations and contributed to the current state of the industry, while the declining fortunes of the economy has made it difficult for many Nigerians to patronise the products of media houses and especially generate advert patronage from corporate firms.”

And today, even those that survived the economic tsunami are still limping and struggling to meet obligations to their employees as at when due. We cannot continue to pretend that all is well with the industry—all is not well. We need help urgently,” he said.

Cookey said rather than complain endlessly about negative coverage in the Western media, we must tell our own story through our own media. He lamented, however, that “our own media cannot tell our own story from the grave or hospital bed. The media industry in Nigeria is sick and in dire need of medical attention in form of financial support. Accordingly, we are asking the Federal Government to support the media industry with N100 billion bailout fund to sustain operators in the industry and save jobs.”

Meanwhile, Mallam Isa Yuguda, Executive Governor of Bauchi State has commended the Board and management of Journal on the 5th Anniversary/Awards of the magazine, saying the occasion provides an opportunity for sharing views and experiences towards consolidating its achievements and galvanising it to further contribute to the socio-economic development of the country.

“Business Journal has since inception stood out as a magazine whose main concern is the economic development of the country. The theme of the magazine’s 5th anniversary which is, ‘Is Nigeria Growing Forward or Developing Backward’, is not only thought-provoking, but underscores its concern and desire for the economic and socio-political development of Nigeria,” the governor said.

Minister of Transport, Senator Idris Umar

The Federal Executive Council on Wednesday approved the procurement of one water weed clearing multi-purpose equipment for N278.1bn.

The cost includes payable taxes, $1.3bn and additional N73.6bn.

The Minister of Transport, Senator Idris Umar, who stated this while briefing State House Correspondents after the FEC meeting, said the procurement was aimed at improving safety on the inland waterways.

He added that the equipment would aid navigation and boost economic activities in the various riverside communities across the country.

The minister said it would also rid the waterways of hyacinth and other aquatic weeds.

“The project will increase economic activities within the coastal areas and prevent boat mishaps. The project will create job opportunities for 15 skilled and nine unskilled Nigerians during the period of its execution,” he said.

Umar added that the council also approved the establishment of the Command Control Communication and Intelligence Centre for Sea Ports at the Nigerian Ports Authority.

He said FEC approved the project at the cost of N2.3bn with a completion period of 14 months.

Umar said the project would help in providing a secure environment for ports operations within the Nigerian territorial waters and in curtailing the threat of terrorist activities at the ports.

The project, according to him, will also create 145 job opportunities, including 33 for professionals and 77 for non-professionals during its execution as well as 35 more job opportunities as it progressed.
- The Punch

A portion of the Lagos-Ibadan Expressway

Three months after President Goodluck Jonathan inaugurated the reconstruction of the Lagos-Ibadan Expressway, physical work on the road is set to commence immediately.

This follows the signing of agreement on Monday by the Federal Government and the two companies that will work on the road, Julius Berger Nigeria Plc and RCC.

While responding to a question on the delay in the commencement of the project after its inauguration in July, the Deputy Director, Federal Ministry of Works, Mr. Umunna Ekenna, told our correspondent that after the cancellation of the concession of the road to Bi-Courtney Highway Services Limited by the Federal Government last year, it was important to agree on a tidy contract with the contractors.

Ekenna spoke with our correspondent in Ibadan on Wednesday on the sidelines of an event organised by National Orientation Agency.

He said although the major work did not start immediately after the July inauguration by the President, a lot had happened prior to the final signing of the agreement.

Ekenna said, “The physical work may not have started after the inauguration of the project by the President in July, but that was because the agreement was just signed between the Federal Government and the two companies this week. Now that the agreement has been signed, the companies can begin physical work immediately.

“Their equipment will be moved to the site and hopefully, full work will begin this month. Before now, the companies had studied the road and came up with permanent solutions to the problems encountered on the road. Julius Berger will work on the Lagos-Sagamu part of the road, while RCC will work on the Sagamu-Ibadan part of it.”

He also said the government entered into the concession agreement because of lack of funds to work on all the roads across the country, stating that it was unfortunate that the concessionaire did not fulfil its own part of the agreement.

Ekenna said, “Our annual budget (for the ministry) is N100bn but the Federal Government gave us additional N85.5bn through the Subsidy Reinvestment and Empowerment Programme. It is helpful but not adequate. So, what we decided to do was to spend the money on major roads that were of national benefit.

“The federal roads shoulder a lot of heavy duty and it is important to constantly work on them. We also decided to engage in Public-Private Partnership, but before you can do that, you must assure the partners that they are going to get a return on their investment.

“Unfortunately, the company, Bi-Courtney Highway Services Limited, which got the job, did not act on the project. It was difficult for the government to quickly come in, but after due process was followed, the concession was withdrawn.”

The Managing Director, Infrastructure Bank Plc, Mr. Adekunle Oyinloye, had said in a statement on Tuesday that Federal Government had mandated the bank to raise N167bn for the reconstruction of the 127-kilometre road.
- The Punch

The Chief Executive Officer, Gold and Co., United Kingdom, Amjad Ali, has told a United Kingdom newspaper, The Independent, that the Federal Government has ordered 53 gold-plated iPhone 5S mobile handsets  from his firm as part of the memorabilia for the nation’s 53rd Independence anniversary on October 1, 2013.

The gold iphones are said to worth £2.65m (about N682m).

Each of the gold-plated iPhones costs up to £50,000, said The Independent, in its report on Wednesday.

The minimum cost of basic models of iPhone in gold or rose gold is £3,000.

The 53 special phones are to be supplied by Amjad Ali, a Bristol-born owner of Gold and Co. based in Dubai.

Ali, who told The Independent that his firm was “fulfilling an order from the Nigerian government for 53 gold-plated iPhones, added, “We will engrave them with the coat of arms, a shield and two horses. “

However, he neither disclosed when he received the order for the item nor the Federal Government agency or ministry that contracted him.

Gold and Co supplies royal families, governments, and minted customers across Russia, China and the Middle East with special phones.

Some of its customers include the Saudi royal family, which, Ali said, ordered a gold iPhone studded with hundreds of diamonds, including a giant piece that serves as the device’s “home” button.

He explained that before such phones were delivered, “We strip them down and then plate them in copper, nickel and then pure gold.”

The company, according to him, has “limited units per region and each is numbered and placed in a handmade wooden box with a certificate of authenticity and wax seal.”

The Academic Staff Union of Universities on Wednesday said the alleged plan to purchase the iPhones showed the government’s insensitivity to the plight of its citizens.

The union, which spoke through its Ibadan zonal coordinator, Dr. Nassir Adesola, urged the Federal Government to first fulfil its electoral promises to the people before engaging in such an “extravagance.”

He said, “It sums up the insensitivity of the Federal Government. For the administration to think of doing this at a time the Minister of Finance is saying that the FG has not enough money to run the country is unfortunate. It seems that the government has gone to sleep and not in tune with the society, it is governing.

“The Federal Government should first cater for its citizens roaming the streets, and rehabilitate its collapsed industries before spending so much for phones. Any government that engages in such a frivolity and extravagance is not serious and its people should reject it.”

However, the Federal on Wednesday denied ever ordering 53 iPhones from the businessman or anybody in commemoration of the nation’s 53 independence.

The Special Assistant (Media and Communication) to the Secretary to the Government of the Federation, Mr. Sam Nwaobasi, told The PUNCH that the report by the foreign newspaper was a lie.

He said, “The Federal Government has not ordered for any 53 iPhones from any businessman anywhere. That is my answer to your question; it is not true, the Federal Government did not order, is not ordering for and has not ordered for 53 iPhones from anybody or anywhere,” Nwaobasi told one of our correspondents.
- The Punch

The National Information Technology Development Agency (NITDA) has warned that if the ignorance about information communication technology (ICT) in and out of governmet is not tackled, attainment of Vision 20:2020 of the Federal Government will remain a wishful thinking.
NITDA is the clearing house for IT projects in the public sector with the mandate to bring government and its services closer to the people through IT. It was also created to implement of the National IT policy, which seeks to make Nigeria an IT capable country in no distant future.
NITDA’s Director-General, Dr. Ashiru Sani Daura spoke during a visit by a delegation of the Nigerian Computer Society (NCS) in Abuja led by its new President, Prof David Adewumi.
He lamented that Nigeria is lagging behind in lobal ranking as shown by the country’s position on the global e-readiness index.
According to him, though ICT penetration was improving, there is need for the country to do more and be front runners in Africa. He stressed the need for massive enlightenment, adding that there was also need for collaboration.
“The transformation agenda and achieving Vision 20:2020 also requires IT,” Daura said.
While noting that NCS had been playing an important role in accelerating IT development in Nigeria, Daura recommended that NCS and NITDA should meet to create an action plan on the issues mentioned, advising that both organisations should strengthen their relationship for better mileage and benefit for the nation.
The NCS boss solicited for strategic partnerships in programmes and projects relating to research and development (R&D), cybersecurity, IT-enabled employment generation, promotion of excellence and professionalism in the industry and IT policy formulation that are of immense benefit to the country.
He commended the NITDA chief for not only sponsoring but also taking time out to attend NCS last conference in Osun State.
He said the goals of NITDA are in line with the core objectives of the NCS. He also praised Daura’s efforts at developing the outsourcing sector of the country, adding that NCS is proud that NITDA, which was borne out of the NCS vision and initiative, has firmly established.
- The Nation

Nigeria's Minister of Finance, Ngozi Okonjo-Iweala

If Nigeria and South Africa keep growing at their current paces, Nigeria could replace South Africa in the Group of 20 (G20) countries within nine years, according to Stanlib chief economist Kevin Lings. In a recent note he says: “It is entirely feasible that, by then, Nigeria’s economy will have overtaken South Africa’s, making it eligible for G20 membership, possibly at the expense of South Africa. “

The G20 is a group of 19 advanced and developing countries plus the EU, set up in 1999. South Africa is the only African country to be represented.

Lings points out that 20 years ago, the domestic economy was 7.5 times the size of the Nigerian economy, in dollar terms. But by the end of 2012 it was only 1.4 times the size of Nigeria’s.

“This narrowing of the gap is mainly because Nigeria’s economic growth rate has accelerated meaningfully in recent years, though off an extremely low base, while South Africa’s growth rate has moderated.”

According to Nigeria’s central bank, growth in gross domestic product (GDP) averaged 6.8 percent between 2005 and 2013. From 2005 until the global recession of 2008/09, South Africa’s growth rate averaged a little over 5 percent. Since then it has not topped 3.5 percent.

Nigeria’s central bank said the fastest growing segments were wholesale and retail trade, and telecommunications. Nigeria’s 170 million people make it the most populous country in Africa and the seventh-biggest in the world.

This creates a massive market, attracting investment from across its borders, including from South Africa, which is becoming increasingly aware of the opportunities in servicing this population.

In contrast, South Africa’s population is estimated at 51.1 million (5.7 percent of the population in sub-Saharan Africa), making it the fifth most populated country in Africa, Lings says.

Location, location, location

A study carried out by economists from Economic Information Services and led by Capetonian Barry Standish has “proved” that the property industry maxim “location, location, location” is spot on.

Standish’s team, commissioned by the V&A Waterfront to uncover its economic impact on the local environment, used the “Hedonic methodology”, which employs the comparative price per square metre to arrive at it findings that on average Cape Town’s waterfront increased neighbouring property values by R2.8 billion.

The study found that residential properties within a 1.5km radius of the waterfront were worth R123 056 more than similar properties elsewhere, and commercial properties were worth R1.14 million more.

Residential properties within the V&A Waterfront precinct were worth R3.6m more than similar properties elsewhere in Cape Town.

Standish reported: “There is anecdotal evidence to suggest the V&A Waterfront provided the catalyst for the significant upgrading of surrounding suburbs such as Green Point and De Waterkant.”

Reacting to these findings, V&A Waterfront chief executive David Green said: “Aside from the obvious benefit to property owners, the report also highlights the knock-on effect for the city of Cape Town in respect of property rates, which in turn has a benefit for residents and businesses in greater Cape Town. In addition to this ripple effect, the V&A Waterfront is the city’s largest ratepayer.’’

The total potential annual rates generated within a 1.5km radius of the waterfront has been estimated at just short of R250m in 2012. In more than 10 years, the waterfront had added nearly R200 billion to the GDP. It had created about 17 000 jobs directly and a further 16 000 indirectly.

Success also drives success. Recent residential sales for the new Silo residential development is 80 percent sold in little more than three months, which is about three times the pace at which developments are sold outside the waterfront.

It proves that the waterfront’s economic “ripple effect” works too.

Banking on reputation

Banks in South Africa have emerged from the global financial crisis with their reputations not only intact but generally enhanced.

It was not entirely of their own doing, of course, but they managed to avoid becoming embroiled in the sorry mess that was the subprime crisis. Thus there has been no discussion here of banks being too big to fail as there has been in Europe and the US.

However, when it comes to bank results’ season, it is impossible not to realise how big our banks are.

They are enormous and complex entities that have their fingers entwined in every aspect of the economy.

But, while it no doubt pleases the local regulators that they have big entities to oversee, the size of the four major banks makes it virtually impossible for journalists to do anything other than a superficial job in covering their results. Not so much a case of too big to fail as too big to cover.

The need to focus on the big picture means that lots of fascinating information tends to be overlooked.

Such as way back on page 90 of the FirstRand results released yesterday, you discover that “building and property development” has the highest rate of non-performing loans as a percentage of advances. It has 7.16 percent compared with mining, which has a rate of 0.54 percent.

Agriculture’s non-performing loan rate is down to 2.96 percent from 3.40 percent, which either means that the farmers are better off this year or that FirstRand has cut back its lending to them.

And then there’s the 2 500 innovations reported at FNB. This is an amazing “fact” and in line with what you’d expect from an innovation leader.

Of course, the big question for many FNB clients is whether or not its horrendous new website is included as one of the 2 500. page 19
- The Business Reporter

The United States Trade and Development Agency (USTDA) has offered grant to Main One, to support a feasibility study on the extension of a fibre optic network from Lagos to Port Harcourt, Rivers State.
The grant will enable Main One to evaluate the technical and financial feasibility of extending 300 miles of undersea fibre optic cabling and supporting infrastructure between two of the country’s most important commercial centres.
Speaking at the signing ceremony of the initiative, USTDA Regional Director for sub-Saharan Africa, Paul Marin, said the project is important as it will help promote the drive for internet pentration in the country.
“This project is an important example of Main One’s commitment to bring high-speed broadband access to Africa. We are proud to be supporting Main One in their efforts to provide the infrastructure for broad-based economic growth in Nigeria,” he said. Marin was represented by the United States of America (USA) Consul General, Jeffrey Hawkins on the occasion.
Chief Executive Officer of Main One, Funke Opeke, said the grant will deepen the provision of broadband services in the Niger Delta region and boost the economy of the region. “We are appreciative to the USTDA for this important grant aimed at furthering the development of broadband services and economic development in the oil-producing Niger Delta region,” she said.
The grant was signed by Hawkins on behalf of USTDA and Opeke for Main One, at the residence of the Hawkins.
- The Nation

Faces of some of the sacked Ministers

President Goodluck Jonathan sacked nine ministers yesterday – in a shocking move that sparked questions on the motive of the action.
Five factors accounted for the ministers’ sack, The Nation learnt.
According to highly-placed sources in government, some of the reasons are: non-performance; security reports on alleged corruption; political allegiance and doubtful loyalty to the President; poor management of turn-key projects; and the crisis in the ruling Peoples Democratic Party(PDP).
A source, who pleaded not to be named because of the “sensitivity” of the matter, said: “You will recall that the President asked the ministers to sign a performance bond. About four of the nine ministers failed to live up to expectations in the assessment of the Presidency.
“In fact, three of the ministers were yet to understand their mandate after being in office for two and a half years. One of the ministers had more than 20 agencies under him but his performance was poor.
“We cannot also rule out alleged corruption acts by two to three of the ministers. For instance, there is a particular outgoing minister who forced the parastatals under the ministry to buy a N17million Sports Utility Vehicle SUV for personal use.
“The money-spinning parastatals were unhappy but they had to do it. It also got to a ridiculous extent that the minister was always asking for remittance of interest accruable from funds kept in some banks by parastatals under the ministry.
“Another minister had problems with award of contracts, some of which were rated as inferior. The agencies supervised by the minister made a joint demand for change.
“Ironically, the minister lost a plum cabinet position at a time a platform was created in a state to fight political adversaries of Jonathan. The minister was dazed when the President announced the sack.”
According to a source, there was also the alleged tardiness in the award of the $1.3billion (N212billion) Zungeru Hydro Project.
The Federal Government is expected to spend about N303million in generating one megawatt of electricity. The hydro project is said to be one of the most expensive in the world.
“Although no corruption infraction was found against Hajiya Zainab Kuchi, she was sacrificed for not being vigilant,” the source claimed.
It was also learnt that the alleged overstaying in the cabinet by the former Minister of National Planning, Dr. Shamsuddeen Usman, may have led to his exit.
Another source said: “I think Shamsudeen has been in the cabinet since 2007. Though he did well in designing the Performance Benchmark for the Federal Executive Council(FEC), the nation’s planning system has not improved.
“An egg-head, who is a former Deputy Governor of Central Bank of Nigeria(CBN), he may have lost his post because of difficulty in measuring his achievements which appeared to be long term. And you know, politicians have no patience for long term gains.”
As at press time, political motives were being read into the sack of some of the ministers but a source in the Presidency disputed these.
Some ministers were reportedly sent packing because of the rebellion of the G-7 governors in the PDP.
“People alluded to this factor because some of the Ministers were nominated by their governors. Such Ministers are Prof. Ruqayyatu Rufai(nominated by Governor Sule Lamido); Zainab Kuchi(by Governor Babangida Aliyu of Niger State); Alhaji Bukar Tijjani(from Borno now being controlled by APC without being unable to mobilise PDP to launch counter-attack),” said the source, adding:
“For Shamsudeen, who was not nominated by Governor Rabiu Kwankwaso, his alleged cold war with the Kano State Governor led to the factionalisation of PDP in his state. He became a political risk for Jonathan to retain him in the cabinet.
“But, contrary to political permutations, some ministers from the rebellious states, like Adamawa , Rivers and Kwara, are in the cabinet because of performance without anyone touching them.”
Ms Amal Pepple, who is from Rivers State, is believed to have lost her job for being unable to read the President’s mood on the crisis in the state.
“Concerned about her state, Pepple recently walked up to the President, knelt down and asked him to forgive Governor Rotimi Amaechi of whatever sin the governor had committed,” the source said, adding:
“Although Pepple was not nominated by Amaechi, her U-Turn made the Presidency suspicious of her loyalty.
“Her innocent intervention in Rivers crisis and fact that she was also just waking up to make impact at the Ministry of Housing and Urban Development cost her the job.”
Ashiru’s removal was said to have shocked his colleagues. “In fact, one of the ministers almost shouted as the President was reeling out the names of those to be dropped,” the source said.
He said: “There is a strong suspicion that since the Presidency was uncomfortable with ex-President Olusegun Obasanjo, who brought Ashiru into the cabinet, the minister’s days were numbered. In spite of the mediatory role of Obasanjo in PDP crisis, the position of the Presidency was that he had only attempted to clear the mess he created. Ashiru might just be a scape-goat.
“As for the Minister of Environment, Hadiza Mailafia, the tempo of political situation in Kaduna requires a change of guard.”
President Jonathan shocked the sacked ministers as he did not betray any emotions at the FEC meeting.
A Presidency source said: “We all went in with the usual exchange of banters. The President and his deputy and a few others came late but we did not suspect anything.
“After honouring a star athlete, Blessing Okagbare, we went into the business of the day with most of the nine ministers making contributions, oblivious that they would go.
“As we were about to say the closing prayers, the President said: ‘I wish to inform you that some ministers will be attending this FEC meeting for the last time there will be some changes; some will be dropped.’
“A pin-drop silence overwhelmed the Executive Chambers as he was reading the names in a military fashion.
“After the list was read, the Minister of Interior, Comrade Abba Moro, said the closing prayers.”
- The Nation

President Goodluck Jonathan

President Goodluck Jonathan has reshuffled his cabinet, dropping nine ministers.
The ministers affected are Ruqayat Rufai (Education); Zainab Kunchi (Power, [state]); Buka Tijani (Agriculture [state]), Shamsudeen Usman (National Planning; Ita Okon (Science and Technology);  Olugbenga Ashiru (Foreign Affairs); Ama Pepple (Lands) and Hadiza Mailafia (Environment).

Nigerians had long expected President Jonathan to rejig his lackluster cabinet which has largely failed to deliver services to the Nigerian people.
But while the expectation mounted, Mr. Jonathan repeatedly  dispelled speculation that he had plans to fire non-performing ministers.
Last August, he unveiled a rating procedure known as Performance Contract Agreement for ministers but said he would not use the result of the assessment in considering who to fire.
Mr. Jonathan said the assessment would only appraise his administration’s performance and delivery of targets to Nigerians.
“I read all kinds of thing in the media, that the president wants to assess the ministers so that he would know who would go and who would stay. That is not the purpose of this.
“We would have done it probably in the first week when we came on board, but the key thing is that we have given ourselves points that we think we will get at, we believe that if we get at those points or even if we achieve 70 per cent of that, at least it will be better off for our own country,” the president said.
According to the president, the exercise was to ensure enhanced performance, transparency and accountability in governance, adding that it is not a witch-hunting exercise.
“I want to assure every one of you who has taken part in the exercise that this is not a witch-hunt targeted at anybody,” the president said in his remarks after the signing ceremony.
- Premiumtimes