Wednesday, September 19, 2012

Ghanian President says imbalanced development causing insecurity in Nigeria

Former Ghanaian President John Kufour has identified imbalanced development as a major cause of insecurity in Nigeria saying the situation is forcing the country to pay a higher price than it should to sustain its role as the giant of Africa that it could and should be.

This is as President Goodluck Ebele Jonathan harped on the need for a crises free Nigeria in order to transform the country in line with the agenda of the incumbent administration.

Both presidents spoke at the 52nd Independence anniversary lecture titled: 'Nigeria: Security, Development and National Transformation' held Tuesday at the premises of the Ministry of Foreign Affairs in Abuja.

According to Kufour, who observed that only a government that delivers on security and development could ensure its longevity in office, the resourcefulness of Nigerians is yet to have full impact on the development of the nation.

He said this shortcoming is also detrimental to the country claiming its rightful position as 'giant of Africa' from which other nations on the continent could benefit from or copy from as a role model to model or gauge their development.

His words: "Naturally, imbalanced development that involves horizontal inequalities is an important source of conflict and that is costing Nigeria the opportunity to be the giant nation that it can and should be."

"Nigeria has globally acclaimed assets which it needs to evolve into a strong, stable state with powerful strategic influence, spanning the entire continent of Africa and far beyond. The question then is why Nigeria does not seem to get its act together to play its role of destiny for itself and for the rest of Africa," he queried

He said: "The challenge is to accelerate the pace of development by using institutions of the federal Constitution as a nursery ground for producing leaders who are national in outlook and with a missionary zeal to transform this nation.

"This will help to mould the contending ethnic and religious groups into harmony and help to remove the perceived mutual distrust among them.

"Leaders so emerging would not be limited to championing the causes of their home state, tribe or religious group, but rather focused on deeds and pronouncements which convincingly and positively impact on the entire citizenry of the federal republic.

"Nation building is the systematic evolution of the political, economic, social and cultural well-being of all the various component parts of the state.

"Indeed the transcendent factor should be the common citizenship of all the stakeholders no matter the tribe, gender, religion, economic or social status as your Constitution stipulates.

"If there is no security, there is no liberty and if there is no liberty, life is not meaningful and society reverts back to the law of the jungle i.e. the survival of the fittest and man's primary objective of forming a state is defeated

In his own speech, President Jonathan attributed the current insecurity in the country to the handiwork of those who, despite the government's achievements in transforming Nigeria, employ every means to discredit it, stressing that there is no way any government can record progress with incessant security breaches such as the ones that characterise the Nigerian polity today.

"The key issue we are discussing is about peace and development and of course we all know that there is no way you can talk about development when you have a lot of crisis. In fact some people make more money when there is crisis and when there are crisis is like a country in a state of emergency, anything goes.

"Crisis is one aspect but generally if there is no peace is extremely difficult for the ordinary people to survive though big players in economy may survive. Ordinary citizens having small and medium enterprises cannot come out to do business during crisis and of course it affects the economy. So you must have peace to develop.

"Peace is one of the cardinal marks of a leader. In the monarchy in the olden days, the king had maximum power but for your kingdom to be stable you must have the military strength. So without stability of any state we cannot development.

"I agree totally with President Kufour who really gave us the break down of the kind of security situation that we have.

"When you talk of insecurity of using bombs and guns to kill people what has been described as physical security but in terms of social security, food security, health and the justice system all have to do with the security of individual.

"But I believe what we face in Nigeria though not peculiar to us, one of our greatest problems is what I described as political security. Government can continue to provide physical security but also very important is the political security. When you have an ending political conflicts in Nigeria, the country cannot develop.

"I believe political security is a big issue. There is this axiom that the pen is mightier than the sword. The sword is used to kill and destroy but what we use the pen to do is also very critical. When you have society with these unending political conflicts, it is there on the media whether print, electronic or social media, it brings a lot of insecurity to the system and some times people begin to doubt your government.

"For example when we were contesting election we promised it will be free and fair, I was convince I must do that even if I will loss the election. After our election in 2007, even the presidents in our neighbouring West African states were finding it difficult to congratulate us because the observers felt the election was not properly done. That haunted us even when we travelled out and I promised myself that if I have the opportunity to preside over an election, I will do something different even at my expense at least for the sake of the country. And we did that but unfortunately, even though there were crisis in some parts of the country, observers felt the election was reasonably free and fair compared to others. But immediately after that election, not quiet six months, the kind of media hype that started hitting us made us to stop and ask where is this coming from?

"I said I did not just come out from the blues to contest the election, I was deputy governor for six and half years, I was a governor for one and half years, I was a vice president, and before election, I was the president up to April when the elections were conducted, people knew me. So within this period including when I even acted, if I was that bad will people have voted for me? So for Nigerians to have voted for me overwhelmingly that means there must have been something they were expecting and definitely six months would have been too short to pass any valid judgement. But the media condemned me.

"And I believe is not just the media, like when we talk about the Boko Haram, we have political Boko Haram, religious Boko Haram and criminal Boko Haram. So also in the media, you have the professional media and the political media. That is why I talk about the political media, because of the interest of 2015 whatever you do is immaterial, the government must be brought down. And that mentality cuts across most African countries and even outside Africa.

"So addressing insecurity is critical in developing African state. When you have this ending political conflict especially in a country like Nigeria that is highly religious and with high ethno-tribal sentiments, it becomes very potent to even create a lot of problems for government.

"So I will plead with us as Nigerians that whenever we elect government into power at whatever level, at least for the sake of the country allow the government to work before going into unnecessary overheating the system.

"So as government we are committed to creating the environment. I'm pleased with the way President Kufour spoke on the issue of transformation. I agree that the leader must be the key actor for transformation but those who will implement are the citizens. For instance, during the election, we advocated one man one vote, we were totally committed and I said it that nobody should rig election for me. But Nigerians believed that we were sincere and because they knew we were sincere, that took the life of its own. No I don't need to go and preach again. We have monitored elections in Edo and other places, nobody wants to compromise with his vote. Is government that created that environment but is not government that will enforce it, it is the citizen.

"That is why we are a bit worried that sometimes when government create the environment, whether economic, social or even the media, but how the citizens use those privileges matters so much.

"Take the media environment for instance, we signed the Freedom of Information bill into law, it became the freedom of Information Act, but are we using it in the way we are suppose to use it? Are some of us not abusing the privileges? The media environment that should have helped our transformation agenda are being used negatively, these are some of the issues we need to address.

"The way Nigerians challenge and abuse me, yes the president has enormous power but if you use that enormous power to some extent you will look like a dictator. In a democratic setting, you want to create an environment where people can create their opinion and that is why people are allowed to talk freely and demonstrate. But are we doing so properly"

One of the discussants, Prof. Ihedu Ivwerebo, said Nigeria has been attempting to enshrine democratic system which is a culture. He said all the past 13 years experience was part of the culture.

He stated that the challenge facing the country was leadership infidelity. "The elites are unfaithful to Nigeria that made them. They go out and speak evil of the country," adding that impatience of Nigerians that we ought to have arrived was also contributing to the challenge.

The Secretary to the Government of the Federation, Senator Anyim Pius Anyim, said the lecture marked another critical milestone among programmes of independence. He said deeper knowledge of national issues would offer solutions to national problems, assuring that the President will remain committed to discussions and that the anniversary lecture has come to stay.

Nigerian National Assembly says no to N5,000 bank note

The Senate and the House of Representatives joined forces, yesterday, as they resumed from their two-month recess and asked President Goodluck Jonathan to stop the Central Bank of Nigeria, CBN, Governor, Mallam Sanusi Lamido Sanusi from going ahead with the restructuring of the Naira and the introduction of N5000 note, describing it as illegal and unconstitutional.

This came as the House of Representatives gave President Jonathan 14 days to implement the report of the investigative public hearing on the near collapse of the Capital market, which recommended the removal of Ms Aruma Oteh, as the Director General of Securities and Exchange Commission, SEC.

The plan by Mallam Sanusi to restructure the naira, as well as introduce N5,000 note received condemnations from both chambers of the National Assembly as the lawmakers described the proposal as anti-people.

The senators upon considering a motion moved by Senator Ita Enang, accused Sanusi of pursing International Monetary Fund, IMF, agenda which was set to impoverish Nigeria.

They also accused Sanusi of being arrogant, and a misleading public officer who claims to have monopoly of knowledge.

The Economic Team of President Jonathan was also lambasted for endorsing a policy the lawmakers described as unpopular and anti people.

Enang while leading debate on the motion observed that the CBN policy would lead to widespread corruption and untold economic problems for the nation.

He said: "The policy will create multiple economic problems like inflation, corruption and security challenges, and would erode the value of the nation's currency and ruin the economy.

Senate President, David Mark, while condemning the policy, accused Sanusi of using hypothetical facts and figures to mislead Nigerians.

He said that the actions of the CBN governor and the argument that the policy would reduce inflation in the country were mere theory that is unacceptable to Nigerians, adding that government should be bold to reverse any unpopular policy.

He said: "The important thing is that if Nigerians say they do not want a particular policy at any given moment, there is no harm in government retracing its stand on the issue and I think that is the situation that we find ourselves.

"I have listened to the arguments from those who support it but those arguments are simply not convincing. They appear to me to be highly theoretical and technical in nature and they do not address any practical issue on ground.

"Any policy that does not address issues directly but just talking about indices we cannot verify for now, should wait. We have not reached that level where we are just talking of hypothetical cases all the time.

"I think the disadvantages of the N5,000 note at the moment far outweigh not introducing it and on balance, we should not go for it. And also, from the contributions on the floor, we are all in support of the fact that the timing is wrong and the policy is unnecessary at the moment and the arguments being advanced are not convincing and there is no urgent need for it to take place now.

"There is no ambiguity on our stand on the issue. I am not sure that Sanusi is aware of the Constitution; if he was, he would make reference to us before addressing the issue."

Senators oppose CBN plan

Deputy Senate President, Ike Ekweremadu, who also opposed the policy urged the CBN governor to listen to the people, warning that his failure to do so may lead to disaster for the country.

"Section 4 (2) is clear that sovereignty belongs to the people. Any government that fails to listen to the people is heading for disaster. Let Sanusi listen to the people today", he warned.

Senate Leader, Victor Ndoma-Egba who also contributed to the debate urged the CBN governor to allow the will of the people to prevail, stressing that introducing N5000 note would increase the rate of corruption.

According to him, "in a democracy, no matter how strongly a policy is, you cannot claim monopoly of wisdom. Even if the policy is good for the people and they say they do not want it, it is their right to refuse what is good for them. This is one moment that our policy makers must listen to Nigerians."

Also kicking against the proposal, the Chairman, Senate Committee on Media and Publicity, Enyinnaya Abaribe, who addressed journalists at the end of plenary, accused the CBN of contravening section 4 (2) of the 1999 Constitution,

He said: "The proposed action is illegal because it directly contravenes section 4 (2) of the constitution. The section empowers the National Assembly to legislate on issues of currency, coinage, and legal tenders. The CBN acted ultra vires by even contravening its own law too because section 8 states that they must consult with National Assembly."

Senators Smart Adeyemi, and Nurudeen Abatemi, both of PDP, Kogi, East and Central Senatorial districts respectively maintained that Sanusi was acting out IMF plans to ruin Nigeria's economy, by sticking to the policy despite strong disapproval from the people.

According to Adeyemi, "the agenda of introducing N5,000 is part of IMF plans to impoverish Nigeria. Jonathan should be wary of some policies that are tailored to suit IMF's plans to impoverish our people."

Opposing the currency restructuring, Atai Aidoko, ANPP, Kogi stated: "This policy displayed how principal officers mislead Mr. President. This is an agenda of the West to re-colonize this country. This also bothers on the issue of arrogance of the CBN governor. He has displayed so much arrogance, insulted a former President and he has to be called to order."

Members of the House of Reps who spoke against the plan to introduce N5,000 note stressed the need for the intervention of the House to ensure that the apex bank responds to public reasoning.

After the debate on the motion tagged: "Planned restructuring of the Nigerian currency by the CBN - a cash policy somersault", the lawmakers directed the House Committee on Banking and Currency to conduct an investigative public hearing on the subject matter, and report back to the House within four weeks.

Hon Sam Tsokwa, chairman House Committee on Rules and Business argued the planned introduction of the note was part of the restructuring of the Nigerian currency and contradicts the recently introduced cashless economy policy aimed at reducing the volume of cash transactions in the country.

According to him: "The House is concerned by the views expressed by some economists and other professionals that the policy will cause hyper inflation, reduce purchasing power, currency devaluation and a widening gap between the rich and the poor. We are further concerned that the policy is also inconsistent with international best practice as leading economies like the USA, Britain and China do not have such high currency notes in circulation. We are also aware that the largest denomination of the British Pound currently in circulation is the £50 note while that of US is the $100 bill."

Hon Patrick Ikhariale argued that the policy is tantamount to economic genocide as it will further impoverish majority of Nigerians who live below poverty level, adding that coins are no longer in use.

Sack Oteh now, Reps tell Jonathan

Meanwhile, the House resolution calling on President Jonathan to sack Oteh within 14 days was passed at yesterday's plenary session of the House where the Reps including Femi Gbajabiamila, Minority Leader; Patrick Ikhariale, chairman House Committee on Power; Jones Onyeleri, chairman House Committee on Banking and Currency expressed displeasure over unsavoury relationship between the Executive and the Legislature.

The sponsor of the motion titled: "Need for Mr President to enforce the resolution of the House of Representatives on the investigation into the near collapse of the capital market", reiterated the need for the House to challenge the decision of the Executive.

He explained that "the House has been known for courage, focus and that's whom we are. We need to urge Mr President to protect the sanctity of the Constitution" noting that no one should be treated as sacred cow.

Osai also expressed concern over the state of the capital market, arguing that non-implementation of the report will further create panic and loss of investors' confidence.

"It was the resolution of the National Assembly that enabled the President to assume office as acting President in 2010 (using the Doctrine of Necessity). "The House should therefore request the President to implement the resolution of the House of Representatives on the investigation into the near collapse of the Nigerian capital market particularly aspects of the resolution requesting the removal of Ms Arumah Oteh as the Director-General of the Securities and Exchange Commission for being unqualified by law as director general of SEC, as contained in sections 3(2a) and section 38(Ib), 2 and 3 and section 315 of the Investment and Securities Act (ISA), 2007." The motion was thereafter put to vote which enjoyed overwhelming support of the house.

Following the adoption of the motion, the House then directed the Committee on Legislative Compliance to within 14 days brief the House on the level of compliance with the resolution.

No comment -- Sanusi

Meanwhile, the Governor of the Central Bank of Nigeria, CBN, Mal Sanusi Lamido Sanusi, yesterday, declined comment on the resolution of the House of Representatives that actions on the proposed N5,000 note be stopped, forthwith.

Journalists had sought the position of the CBN on the issue in view of the resolution of the legislators and opposition to the proposed currency note from various segments of the Nigerian public, but the CBN boss insisted he was not ready to speak on it.

He simply said, "I have heard but I have no reaction."

Vanguard

Monday, September 17, 2012

Boko Haram spokeman killed by Nigerian military

Nigerian soldiers on Monday shot dead a man suspected to have acted as a spokesman for Islamist group Boko Haram and arrested two other high-ranking members, a military official said.

"We carried out an operation early this morning in which we killed a media man of Boko Haram terrorists and arrested two field commanders of the sect," said Lieutenant Iweha Ikedichi, spokesman for a military task force, adding he did not have their exact identities. Soldiers involved in the operation on the outskirts of the city of Kano said the man killed was suspected to be one of the Boko Haram spokesmen who uses the alias Abul Qaqa.

President Goodluck Jonathan says Nigeria will conquer current challenges

President Goodluck Ebele Jonathan has reaffirmed his confidence in Nigeria's ability to overcome its present challenges and emerge as a very strong, united, stable and economically-progressive nation.

Speaking at a farewell audience with the outgoing Austrian Ambassador to Nigeria, Dr. Stefan Scholz in Abuja, on Thursday, September 13, President Jonathan said that his administration was steadfastly evolving and implementing policies and measures to tackle the country's current developmental challenges, including those related to national security and power supply.

The President told Dr. Scholz that some of the positive effects of the policies, measures and actions being implemented by the Federal Government will become increasingly apparent in coming months.

President Jonathan commended the outgoing Ambassador for his efforts to improve bilateral cooperation between Nigeria and Austria, noting that trade and economic relations between both countries had improved significantly during his tenure. "You have done wonderfully well and we are quite pleased with what you have achieved here," he told Dr. Scholz.

Dr. Scholz described his tenure in Nigeria as a great "honour, privilege and opportunity" to get new perspectives on development.

He praised the Federal Government's Agenda for National Transformation and pledged that Austria will continue to give Nigeria all possible support and assistance towards its successfully implementation.

Nigeria's economy grows by 6.28 percent

The Nigerian economy grew by 6.28 per cent in the second quarter of this year, driven by non-oil sector growth, while inflation fell for the second straight month in August helped by tight monetary policy, the latest economic data from the National Bureau of Statistics (NBS) have shown.

GDP growth accelerated in the second quarter, up from 6.17 per cent in the first quarter, which was the lowest quarterly rise in three years.

"The non-oil sector was driven by growth in activities recorded in the building and construction sector, while oil sector output decreased, compared to the second quarter of 2011," the NBS said in its report released Sunday.

The economy is expected to expand at a slower rate this year, after rising 7.4 per cent in 2011, due to disruptions to oil production and economic weakness in developed countries that buy its gasoline-rich crude.

The Consumer Price Index (CPI) dropped to 11.7 per cent year-on-year in August, down from 12.8 per cent in July, largely due to a fall in food inflation which dropped to 9.9 per cent in August from 12.1 per cent the previous month, the NBS said.

Average crude oil output from Africa's largest producer rose marginally to 2.38 million barrels per day (bpd) in the second quarter, from 2.35 million bpd in the first quarter. This was down from 2.45 million bpd in the second quarter of last year.

Oil accounts for more than 80 per cent of Nigerian government revenue and around 95 per cent of its foreign exchange earnings.

The report said high interest rates and lower food prices had helped temper inflation.

"The relative moderation in the index is attributable to the relative slower rises in both the food and 'core' indices partly as a result of aggressive monetary policy initiatives by the Central Bank of Nigeria (CBN), base effects and a much lower rise in several food prices," the bureau said.

The CBN had, among other things at its last monetary policy committee (MPC) meeting, raised banks' cash reserve ratio (CRR) to 12 per cent from 8 per cent in a bid to curb inflation and discourage speculative activities at the foreign exchange market.

The CBN monetary policy committee will meet next week and while the inflation numbers will feed some private sector demand for a loosening of monetary policy, some analysts are expecting rates to remain at 12 per cent, as they have been since November last year. The rate decision will be announced tomorrow.

Other reasons given for the 8.5 per cent drop in inflation include base effects and a much lower rise in several food prices such as yam, tubers and vegetables due to the harvest season.

The NBS said: "In particular, the Food Index exhibited a sharp increase in August 2011. The implication is that year-on-year changes in August this year were muted due to higher prices in August of the previous year.

"In August this year, most classes under the food index increased, but again, only in relative moderation."

According to the report, the composite Food Index dropped year-on-year by 9.9 per cent to 135.9 points in August from 12.1 per cent in July.

Meanwhile, the urban inflation rate stood at 14.4 per cent year-on-year, while that of the rural component recorded a year-on-year increase of 9.7 per cent.

According to the NBS, the urban all items index increased by 0.69 per cent month-on-month, while the corresponding rural index also increased by 0.66 per cent, compared with the previous month.

The NBS report noted that on a month-on-month basis, core index increased by 0.6 per cent during the same period.

"The rise in core index is attributable to higher prices of clothing, medical services, hotel and restaurant prices, and accommodation services, among others. The average 12-month annual rate of rise of index was 13.3 per cent for the twelve-month period ending August 2012," it stated.

Continuing, the report also noted that percentage change in the average composite CPI for the 12-month period ending in August 2012 over the average of the CPI for the previous twelve-month period was 11.8 per cent.

It added that the corresponding 12-month year-on-year average percentage change for urban and rural indices was 12.4 and 11.4 respectively.