Muslims in Kano, Nigeria have peaceful protest over anti-Islam film

Hundreds of Muslims belonging to Shi'a sect in Kano had a peaceful protest, burning images of Barack Obama and American flag to express their anger over an anti-Islam film produced in the United States of America (USA).

Followers of Shi'a sect, comprising men, children and women, veiled in black, walked from Fagge Juma'at Mosque stretching a distance of about five kilometres up to the Central Mosque near the Palace of the Emir, Ado Bayero, condemning producers of the film that has stirred outrage across the Muslim world.

The sect followers demonstrated peacefully, shouting "death to America, death to Israel and death to the enemies of Islam".

Malam Turi Mohammad, a member of Islamic Movement that organised the protest, led the procession and said "we are out today to express our rage and disapproval over this blasphemous film." Angry protesters burnt pictures of US President Barack Obama, and the country's flag.

Mohammad, who addressed the crowd at the premises of Kano's Central Mosque, adjacent to the Emir's palace, said that "Muslims are pained by this deliberate insult against our religion under the pretext of freedom of expression", urging the protesters to express their displeasure by burning American flag.

He also urged Nigerian government to publicly denounce the film and sever all ties with America and Israel in view of their role in the blasphemous film.

"Nigerian Muslims are not happy with the video because it's aimed to discredit Islam. We are calling on the US government and the United Nation to quickly deal with the person responsible for the film, and put end to this blasphemy across the world," he told the mammoth crowds.

The protest, which was carried out amidst tight security, ended peacefully as military and police officers deployed around the city provided surveillance during the protest. One of the security personnel said "we have no problem with the protest as long as it is peaceful".

Leadership

Former employees of Air Nigeria want airline probed over N36 billion fraud

Some ex-workers of Air Nigeria have petitioned the Central Bank of Nigeria to investigate the N35.5 billion aviation intervention fund given to the carrier some years back to strengthen its operations.

The CBN had, while injecting the fund to the sector, said that "airlines can now partake of the funds and those that are indebted to banks can refinance their loans and amortise them over a period of 10 to 15 years."

The funds were also supposed to help airlines meet the International Civil Aviation Organisation's certifications and address all the issues of technical standards and planes' airworthiness.

The petition dated September 12, 2012, entitled, "Closure of Air Nigeria, call for investigation of N35.5 billion Aviation Intervention Fund", chairman of the National Association of Aircraft Pilots and Engineers, Air Nigeria, Roland Ahmed said the body respectfully wishes to seek the intervention of the governor of the CBN in a N35.5 billion facility drawn by the carrier.

Part of the letter read: "The fund was graciously released after much pressure to enable Nigeria airlines refinance its huge debt as well as inject life into the administration of aviation.

"We understand that the fund extended to Air Nigeria was guaranteed by the airline's main banker United Bank for Africa. To this end, we feel obliged to intimate you of the recent closure of Air Nigeria for flight operation by its chairman Mr. Jimoh Ibrahim. Permit us Sir, to draw your attention to this as we believe it to be an anomaly and a defeat of the noble intention of the federal government through the CBN. We therefore implore your office to take immediate steps to safeguard the N35.5 billion public fund which now appears trapped by Air Nigeria's closure."

Daily Trust

Related stories: Video - Sacked Air Nigeria staff protest

Lufthansa suspends services to Air Nigeria

Arik Air resumes flights

Passengers Sunday besieged the office of the country's biggest carrier, Arik Air, as it resumed operations after suspending domestic flights on Thursday because of picketing by labour unions in the aviation sector.

On resumption, it operated about 100 flights that ferried about 7,000 passengers to several destinations across the country.

The decision to resume operations, a few days after the crisis between the airline and Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and the National Union of Air Transport Employees (NUATE), over the debt the airline owes the Federal Airports Authority of Nigeria (FAAN), was taken at a meeting chaired by the Secretary to the Federal Government, Chief Anyim Pius Anyim, on Saturday.

Some of the passengers had arrived at the General Aviation Terminal (GAT), Arik's operational hub for domestic flights at Murtala Muhammed Airport, Lagos, as early as 5.30am for its first flight which was scheduled to depart at 7am.

Hundreds of passengers were seen in long queues, pushing and shoving to make their way to the airline's counters while touts made brisk business by offering to secure tickets for passengers at a fee.

Following the suspension of its flights last Thursday over a N7 billion dispute between the airline and the unions, Arik had made refunds to passengers who had previously booked their flights.

However, not all the passengers got refunds, resulting in a siege on the airline Sunday by both those who had previously booked flights and new passengers wanting to buy tickets

One of the passengers, Mr. David Johnson, who felt disappointed at his inability to secure a seat on Arik's 3pm and 5pm scheduled flights to Abuja, said he needed to be in Abuja before 6pm to keep an urgent appointment.

According to him: "I was told that all the flights to Abuja for 3pm and 5pm were fully booked and the only available flight to Abuja for now is 7pm. I really need to be in Abuja before 6pm.

"The funny thing is that I even have an Aero Contractors ticket which I ought to have used to Abuja but I got to the counter 30 minutes before boarding and I was told that they had closed the counter."

Asked about Arik's services, he said the airline offers reasonable services to its passengers, noting that its on-board services were good and that the airline always departs on time.

A female passenger, who refused to give her name, remarked that she had to come to the airport yesterday (Sunday) to ensure that she prepared properly for Monday's flight to Yola at 11am.

She was concerned that the flight might be fully booked because of the backlog of passengers.

"I know that all the flights will be fully booked and I don't want to take that risk by coming tomorrow morning because I don't want to be stranded because at times like this, the airline will give preference to those passengers who were supposed to fly during the crisis period," she said.

On her assessment of the airline, she said: "I have been flying Arik Air for the past four years and I can say that their services are very good.

"I can't really compare Arik with other airlines because I have not flown them apart from Arik."

This Day

Nigerian couple in UK prison for fraud

A minicab driver, who claimed he was earning just £700 a month but was living a luxurious life in his Nigerian mansion, has been ordered to pay almost £1.2 million.

Ovo Mayomi and his wife, Juliet Ubiribo, were convicted of fraud in 2010 after using an identity and immigration scam to falsely claim £43,000 in benefits.

Mayomi, 44, claimed he was earning £700 a month and was living in Croydon, south London, while his wife, 32, claimed benefits after telling benefit bosses she was a single mother and a victim of domestic violence.

But fraud investigators found Mayomi and his wife were actually living in a large luxurious house in Lekki, Lagos worth more than £1 million complete with chandeliers and £89,000 worth of sound equipment. He also had a £25,000 watch. His wife wore a Rolex watch and drove a Mercedes Sport Coupe.

Now a British judge has ordered Mayomi to pay £1,197,743.54 in a confiscation order under the Proceeds of Crime Act, or go to prison for six years.
As well as two money-transferring businesses and bank accounts, investigators also discovered Mayomi owned a fish farm in Nigeria.

The couple's benefit scam unravelled when a visa application by Mayomi showed they had married a year earlier and that Ubiribo had a job with which to support him.

Ubiribo also asked the council to re-house her because she was the victim of domestic violence. She claimed she was a single parent so as to claim housing and council tax benefits to help her pay £900 in rent each month.

However, the telephone number she gave revealed the man she named as her landlord - Ayiomike Neburagho - was, in fact, her husband, Mayomi, using a false identity.

At a police interview, Mayomi admitted that while living in Nigeria, he had bought the identity of Ayiomike Matthew Neburagho and had entered the UK as him.

Mayomi was also shown a wedding photograph of himself, using the Neburagho identity, marrying a Nigerian woman in the UK.
He admitted he was the groom in the wedding photo but he said he was ‘just standing in for someone’.

Ubiribo and Mayomi pleaded guilty to all charges.
Mayomi was jailed for 30 months two years ago and his wife was sentenced to 12 months in prison, suspended for two years.
She was also ordered to carry out 200 hours of community service and be under curfew for four months from 9pm to 6am.

Court orders were signed freezing their assets in the UK and abroad in 2010, and an investigation was launched to find out how much the Nigerian-born couple had gained from their criminal lifestyle and what the extent of their assets was.
Mayomi of Ashburton, disputed the results of the assets investigation, and a subsequent four-day confiscation hearing took place at Croydon Crown Court.

Last Friday, Judge Nicholas Ainley ruled that Mayomi must pay £1,197,743.54 by 14 March next year. It is one of the largest confiscation orders carried out by a council.

Failure to do so will see him sent to prison for six years, during which time interest will accumulate on his debt, which will remain due following his release.

At a hearing in July, a confiscation order was made against Ubiribo for £9,357.42 to be paid by October 19 or face five months in prison.
Investigators had discovered she was the owner of a Rolex watch and a Mercedes Sport Coupe.

Councillor Dudley Mead, deputy leader of the council, said: 'This is a landmark case for Croydon as it is the first time the council’s in-house financial investigator has pursued a major confiscation order of this nature.

'Usually these cases are dealt with by the police rather than local authorities. It is rare for councils to have their own in-house investigator, so it is to the anti-fraud team’s immense credit that it is pioneering the way forward in reclaiming the proceeds of crime.

'As a result of our investigator’s fine work, the council expects to be able to claw back as much as £400,000 in taxpayers’ money.

'This case should serve as a clear warning that crime does not pay. Croydon Council will always prosecute in fraud cases and seek to recover money or assets wherever they are.

'This is to protect decent taxpayers from having to pay more.

This Day

Arik Air suspends flights in Nigeria

Passengers intending to board Arik Air to their various destinations were stranded as the airline flight operations were, Thursday morning, grounded by Aviation Unions: the Air Transport Service Senior Staff Association, ATSSSAN; the National Association of Aircraft Pilots and Engineers, NAAPE and the National Union of Air Transport Employees, NUATE, who barricaded the General Aviation Terminal, GAT, where Arik Air operate from.

Meanwhile, Arik Airline has responded by suspending all its domestic operations until further notice. The suspension of Arik flight operations is a major blow to the aviation industry as only three airlines are currently operating domestic flights in the country. The airlines are Arik Air, Aero Contractors, and IRS Airline. Thousands of passengers were stranded at the two domestic terminals in Lagos; the new MMA2 and GAT.

One of the stranded passengers, Mr. Micheal Opara whose 9:30am flight to Port-Harcourt was cancelled as a result of the grounding of the airline by the unions said: “We were billed to fly to Port-Harcourt by 9:30am and and now we are stranded. Nobody knows what is actually happening. The airline has not told us anything. My business in Port-Harcourt has now been jeopardised.”

Asked what his next line of action will be, he simply said: “I don’t know. I like flying Arik.” However, another passenger who was visibly angry said Arik was to blame. He asked why the airline would be owing. When reminded that all the airlines were owing the agencies he said they should all be picketed. He, however, refused to disclose his name.

A passenger who gave his name as Mr. Sule Shehu was more critical in assessing the situation. He was billed to travel to Abuja. He said though Arik should pay its debts, the aviation workers have no right to ground the operations of an airline.

In a swift reaction, the management of Arik announced the suspension of its domestic flight operations till further notice. Addressing a world press conference at its corporate head office in Lagos, the management said:

“Due to persistent hostility of the Ministry of Aviation, and FAAN management, which has culminated in the use of FAAN staff to stop Arik Air operations and lock in checked-in passengers in Lagos this morning, Arik Air has no option than to suspend all domestic operations until further notice. This issue bothers on personal interests, and not payment of bills; since FAAN has been collecting their charges in advance since 18 months now.”

Although the airline regretted the inconveniences the disruption would cause its passengers, it, however, said it would not resume domestic operations until all the issues it has with both the Ministry of Aviation and Federal Airports Authority of Nigeria, FAAN, were resolved.

The airline maintained that FAAN has refused to come to negotiating table since the beginning of the debts crisis that culminated in its operations been disrupted yesterday morning.

Vanguard

Nigeria deports 150 illegal immigrants

Nigerian Immigration Service, Sokoto state Command has deported over 150 illegal immigrants in the state.

Controller of the state command, Alhaji Sa'ad Abubakar disclosed this yesterday while speaking on efforts to rid the country of illegal aliens.

"We have a mandate by the Service Headquarters to ensure that all illegal aliens here are sent back to their countries," he stated.

According to him, those who were deported did not have proper document rendering their stay in the state illegal.

"Before you go to a country, you must have legal backing that will enable you to go to that country. If you don't have papers, nobody will allow you into his own country because it will be a breach of protocol," he pointed out.

The Controller noted that the ECOWAS treaty mandated immigrants to acquire proper travel document for easy identification and monitoring while in their host country.

He said the command would not relent in the effort at ridding the state of illegal immigrants.

Daily Trust

Related stories: Austria plans to deport 1,000 Nigerians

Israel commences mass deportation of Nigerians

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.

This Day

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

Related story: Video - CBN Governor says former President Obasanjo is a good farmer but bad economist

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.

NDTV

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 First

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.

This Day

Electricity supply increases to 20 hours per day in Lagos

Lagos Chamber of Commerce and Industry said electricity supply to Lagos areas have increased to 35 percent in the last three months.

The Chamber revealed this in its latest survey which was presented to the media yesterday by its president, Chief Goodie Ibru.

He said in some parts of the country, the average daily supply of power now ranges between 15 to 20 hours per day.

He said that while households and small businesses tend to have significantly keyed into the increased power supply, diesel price is decreasing in line with falling consumption rate coming from increased power supply.

He said: "We observed that while the administrative blocks of most businesses are now connected to the PHCN, major manufacturers are yet to switch their production lines to the public power supply, because of sustainability concerns.

"We are looking to see how much the dry season will impact power supply as increased water levels in the dams due to the raining season played a key role in the current boost of power generation."

He advised that in order to build on the current tempo, government should sustain the gas-to-power framework.

He said the joint venture gas supply agreements with oil companies must be firmed up in order to ensure regular gas availability for the nation's existing and upcoming thermal power stations.

Daily Trust

Related story: Electricity supply drops by 1,000 megawatts in Nigeria 

President Goodluck Jonathan to host paralympians

President Goodluck Jonathan is to host the Nigerian delegation to the paralympic games as well as members of the Falconet in appreciation of their sterling performance.

The Nigerian paralympians Tuesday night rejected the National Institute for Sports hostel accommodation reserved for them after they touched down in Lagos from their triumphant run at the London 2012 Paralympics Games.

Minister of Information, Labaran Maku, told state House correspondents that the superlative performance of members of the Team Nigeria Special athletes at the just concluded Paralympic Games in London "have wiped away our tears".

According to him, the Paraolympians and the Falconets performance at the just concluded FIFA Women U-20 Championship in Japan was brilliant, and the planned reception this saturday is to send a clear message that all athletes are important.

"They (Paraolympians) have wiped away our tears. The message they have sent is that we need a greater passion in what we do. Their performance confirms that every citizen is important. The reception will send a clear message that all is important", he noted.

On the Falconets, the Minister described the performance of the female junior team that came third as "ventilating", adding that "they showed a lot of talents and defeated very great football nations.

"They have demonstrated that when women are asking for 35 per cent they mean it. It is a clear indication what women can do better where men have failed".

At the London Games, the Nigerian special athletes won a total of 13 medals; six gold, five silver and two bronze medals. The performance lifted the dampen spirit of Nigerians when the able bodied athletes could not win a single medal at the main London Games London.

Hisses, Sighs as Paralympians reject NSC's accommodation

However Nigerian paralympians Tuesday night rejected the National Institute for Sports hostel accommodation reserved for them after they touched down in Lagos from their triumphant run at the London 2012 Paralympics Games.

Some of the athletes spoken to submitted that the NIS hostel did not match their status as paralympics heroes.

The athletes were treated to a mini reception at the National Stadium Lagos. And they were shepherded into the NIS hostels by the National Sports Commission Liaison officer in Lagos, Mrs. Tayo Oreweme, but one by one they sneaked out of the premises preferring to lodge in comfortable hotels on their own, while those who have homes in Lagos went to their abodes.

"We felt that they will be secured at the NIS after a reception was held for them at the National Stadium. I'm aware that some of them went home, but I cannot say if they protested against what was offered to them," said Secretary-general of the Nigeria Paralympics Committee, Dr. Frank Thorpe.

Vanguard

Related stories: Nigeria third best amongst African nations in 2012 Paralympics

75 percent of Nigerians oppose new N5,000 bank note

A survey by the National Bureau of Statistics (NBS) has revealed that 75.1 per cent of Nigerians are opposed to the currency restructuring by the Central Bank of Nigeria (CBN) which will lead to the introduction of the N5'000 note and the conversion of lesser bills to coins.

According to the poll conducted by the NBS, only 16.1 per cent of the Nigerian populace are in strong support of the CBN policy while 4.04 and 4.62 per cent were partially in support and against the currency restructuring policy respectively.

The proposal to introduce the larger bill and convert the N20, N10 and N5 bills into coins has generated a lot of controversy with many groups issuing statements against the CBN initiative.

However, the CBN says it will introduce the new note and coins come 2013 despite the opposition the policy is receiving.

The unyielding stand of the CBN may not be unconnected to the full support given to the policy by both the federal and state governments. The policy has also received the approval and backing of the presidency.

Nigeria's Economic Management Team also believes that the move will help drive the country's economy and discourage the high demand for the US dollar, saying the N5,000 bill will only be for banks and a few "heavy cash users".

But many are of the view that the new policy will engender corruption, fuel inflation and negate the "cashless" policy of the CBN, which was designed to promote the use of non-cash transaction instruments.

FBN Capital Limited, in its bulletin just released, had noted that "some opposition can be attributed to a generalised lack of trust in any official measure with economic or financial implications".

On the cost of managing cash, FBN Capital said, "We note the high, but falling, cost of currency management. Over N125 billion was spent in the past three years printing and minting currency. If this move goes through, we expect to see significant savings made, as the new currency note becomes easier to carry and manage.

"We are also of the view that there is no proven evidence of a correlation between inflation and higher currency denominations. Inflation as we know it is fuelled by too much money chasing fewer goods.

Leadership

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Video - CBN Governor says former President Obasanjo is a good farmer but bad economist

Governor of the Central Bank of Nigeria (CBN) Sanusi Lamido Sanusi has berated former president Olusegun Obasanjo for his stand on the planned introduction of N5, 000 note, saying he was a very successful farmer but a very bad economist.

Sanusi, who defended the proposal to introduce the N5,000 note next year, said Obasanjo as head of state introduced more high-currency denominations than any other leader in the history of Nigeria.

Obasanjo had, last Thursday, stated that the introduction of the N5, 000 note would kill production and affect small businesses negatively.

The CBN governor, while delivering the keynote address at the 6th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja yesterday, pointed out that Obasanjo introduced the N20, N100, N200, N500 and N1,000 notes, yet inflation was low during his tenure.

Sanusi said: "I like General Obasanjo; he is a very successful farmer but a very bad economist. He has introduced more higher denominations in Nigeria than any other head of state. He did the N100 in 1999, N200 in 2000, did N500, I think, two years later and, in that period, inflation was low because it was accompanied by very tight monetary and fiscal policy reforms.

"So for somebody who has gone through that to stand up and say that introducing higher denomination will cause inflation... I don't know if somebody wrote the speech. I am trying to see him, or maybe he was misquoted. Because if he actually said that, then, he must be the single most important determinant of inflation in our history, given the number of notes he has introduced."

According to him, simply producing higher denominations cannot cause inflation if it is not accompanied by an increase in money supply. "We all know that you cannot have inflation simply by introducing higher denomination if you don't increase money supply, and yet we keep repeating the opposite."

The CBN governor said that the apex bank had reduced the cost of cash management from N49 billion in 2009 to N32 billion in 2011, adding that it planned to bring it further down to N25 billion by 2014.

"We started a project, over two years ago, aimed at reducing the overhead in the Nigerian banking industry by at least 30 per cent in a two-year period. That project involved shared services and cash management and cash production and data control and operations. It involved an increased use of technology; so you now have PoS terminals, ATMs, mobile banking, NIBSS transfer, the clearing days have been shortened," he said, adding that the CBN had looked at how it could be more efficient in the management of cash. "In 2009, we did a survey and saw that, of all the cash transactions done in banks, only 20 per cent were for more than N150,000, and that 10 per cent accounted for over 70 per cent of the value of cash. So a very small number of customers are the heavy users of cash and we pay a lot of money printing paper for them," he stated.

The CBN governor said the accounts were there for the record: the total cost of printing and minting all denominations of currency in Nigeria in 2009 at N47 billion, in 2011 at N32 billion and 2014 at N25 billion. He said that 50 per cent of the total cost of procurement could be saved.

Malam Sanusi said printing of the N5, 000 notes could not cost more than N2 or 3 billion.

He noted: "In the 1970s when the N20 note was introduced, N20 was the equivalent of $30. In 2013, when we introduce the N5, 000 note, N5,000 will be the equivalent of $30. It's the statistics. If we could buy $30 with one N20 bill in 1978, you now need 250 N20 bills to buy $30 and we have to print the whole250 notes, pay for the paper, pay for the ink, pay for the security features, for the transportation, for insurance, for clearing, for the bullion van for the ... processing, disposal..."

Leadership

Related stories: Video - Nigeria introduces new 5,000 naira bank note

Central Bank says 5,000 Naira note will reduce inflation

Team Nigeria wins gold at World Chess Olympiad

It was celebration moment in Nigerian camp Monday in Istanbul, Turkey following the confirmation by FIDE that the country's male team displace other contenders to win the Category E of the 40th World Chess Olympiad rounded up Monday night.

Monday's feat was the best performance of the country at the biennial event since 1998 when International Master, Odion Aikhoje won gold medal on board two.

Significantly, this is the first time Nigeria will come top at any team event in chess.

When Team Captain, Lekan Adeyemi, led the team to mount the podium at the closing ceremony, it was a loud ovation to worthy champions of the category who came into the tournament as underdogs!

It worthy to note here that the male team had to wait for the official confirmation after a not too impressive draw it secured in the final game.

And when the smoke cleared, the Nigeria Chess Federation (NCF) President, DCP Sani Mohammed, commended the players for a battle well fought in the last 11 days of mind games.

"Many pundits did not give this team a chance because most of the payers were attending the competition for the first time but I had fate in them and the technical crew and the result here has shown that we have abundant talents in the country," Mohammed remarked Monday night.

However, while the male team were able to sustain their lead in the category till the end of the competition, the female slipped into the second position after a disappointing 1.5-2.5 lost to South Africa and it was Chinese Taipei that emerged top with 10 points as against Nigeria's nine (same as Thailand but the country's representatives won on a tie break

En-route achieving this feat, International Master, Dapo Adu, led the team to secure a 2-2 score line with the Physically Disable Chess Association (PDCA). The US-based Nigerian star drew the first blood with a King's Indian attack against Vit Yarmonov (2333) after 35 moves.

The Nigerian knew nothing short of a win will turn the tide against Nigeria. He thus put his opponent under pressure for the greater part of the game.

However, Bomo Kigigha lost to Vit Valenta (2162) who took advantage of active Bishops in the middle play and sacrificed his Queen for a Rook on move 22 but reclaimed a Knight and a better positional place and the Nigerian fighter had no option than to resign.

On board three, Nonso Orawgu lost to International Master, Ruben Bernarch, (2121) but Adeyinka Adesina restored Nigeria's hope with another mastery win against Bernard Valenta.

Aside the teams' effort, Nsisong Asanga also bagged FIDE Candidate Master title following her six points out of nine games she played in the tournament.

At the last edition of the Olympiad in Russia, the male team placed second while their female compatriots finished third with Charles Campbell and Olamide Ajibowo bagging Candidate and FIDE Master titles respectively. This edition was a rapid improvement of the country's participation at the elite chess event.

However on top board, Armenia edged out perennial rivals, Russia on tie break after both nations finished with 19 points.

This Day

Lagos to introduce Chinese language in school curriculum

Lagos State Commissioner for Education, Mrs Olayinka Oladunjoye, said on Monday that the state government would introduce Mandarin, or Chinese language, in public schools' curriculum as from next session.

Oladunjoye said this in a statement signed by the Ministry's Public Relations Officer (PRO), Mr Lanre Bajulaiye, and made newsmen

The commissioner said this after a meeting with the delegation from the Chinese Confucius Institute, University of Lagos.

She said that learning the language in the state's public schools would be an opportunity for the pupils and students to speak the language and be able to adapt to the Chinese culture.

Prof. Caleb Orimoogunje, Director of the Institute, said the institution was ready to assist the state with necessary logistics to make the teaching and learning of the language easier.

Orimoogunje added that Prof. Lirong Jiang, a co-director of the institute, would help in the take-off of the programme.

Jiang said the institute, as a representative of the Chinese culture in Nigeria, was set up to satisfy people's need about the country's culture.

She noted that the language became necessary because China had become the new destination for economic growth and technological development.

"The Institute is prepared to provide Chinese instructors to teach the language and culture in the state's public schools as soon as the Memorandum of Understanding is signed between the state and the institute.

"The knowledge of Chinese language will help students to further their studies in China and carry out research in various fields of human endeavour as China has become a success story in the world economy," she said.

Vanguard

Related story: Nigerian government signs $1.49 billion construction deal with China

Mikel John Obi amongst Nigerian top football earners

Joseph Yobo, Mikel Obi and Yakubu Aiyegbeni are Nigeria's biggest earners as they each pocket in excess of two million Euros a year.

MTNFootball.com has again scooped that another top Nigerian earner in football is Spartak Moscow striker Emmanuel Emenike.

Yobo is smiling all the way to the bank because his earnings are free of tax in Turkey, unlike when he was in England with Everton.

"He's on crazy money at Fenerbache and he is also playing week in, week out, which was not the case at Everton at a point," a top source informed MTNFootball.com

That could well explain why several more players from Nigeria have now moved to seek their fortune there - Kalu Uche (Kasimpasa), Raheem Lawal (Adana Demirspor) and Uche Kalu (Caysur Rizespor).

"It is a good place for Nigerians to go to because the football is not bad and the money is good because it is free of any tax," a top agent informed MTNFootball.com

Yakubu has proved himself in the English Premier League by scoring double digit number of goals, season after season and so his decision to cash in on a final pay day in China, where he is reportedly on 100,000 pounds-tax free a week.

His super agent Pini Zahavi has even before the striker's move to China secured his financial future for him.

Mikel is on 80,000 pounds a week at Stamford Bridge, but when he has to pay about 42% of that as tax, it leaves him with a little more than 40,000 pounds a week.

He also received a hefty bonus when Chelsea made history by winning their first UEFA Champions League. But again it was heavily taxed.

Emenike is also on a fabulous contract of about 2.5 million Euros a year, but in Russia he has to pay tax and that way he earns less than his national team skipper.

Spartak have reportedly inserted a buy-out clause of 42 million Euros in Emenike's contract after he extended his deal till 2016.

Defender Taye Taiwo also bagged a super deal when he signed up with Italian giants AC Milan. He was on something like 335,000 Euros a month but tax and limited playing time would have eaten deep into this little fortune.

Taiwo is now on loan in Ukraine, where a player like Brown Ideye is also on a very good contract.

Leadership

Related story: Stephen Keshi drops Obi Mikel and Osaze from Nigerian squad

Electricity supply drops by 1,000 megawatts in Nigeria

Two weeks after the resignation of Prof. Bart Nnaji as Minister of Power and the subsequent promise by the Federal Government to sustain the improvement in electricity supply achieved during his tenure, consumers in most cities have again started to experience frequent blackouts.

THISDAY checks showed that consumers, who were getting used to a marked improvement in power supply in their homes and offices, have in the last one week started complaining about the return to old order.

A survey of households in Lagos, Abuja, Abeokuta, Kano and Port Harcourt, among other cities, showed that electricity supply was no longer reliable as it was about three weeks ago.

For example, many parts of Lagos have been experiencing epileptic power supply for the last one week, with some sections of the city cut off completely from electricity since Friday.

In Kaduna metropolis, for instance, some areas that used to have 18 hours of power supply are now down to eight hours or less.

A resident of the state told THISDAY that the recent review of tariffs has aggravated the plight of the residents of the city.

"With 18 hours of light, I used to pay N5,000 monthly and the money will be carried over to the next month. But since the increase in electricity tariffs, I have been paying almost N11,000, without any carry over to the next month.

The situation was also the same in some parts of Port Harcourt most of last week. "For almost one year, we did not have light until the past three months when we started having light up to four hours. But this time, it is two hours for the past one week," said Ndubuisi, a resident in Port Harcourt.

Another resident in Enugu State and auto parts dealer, Nnaemeka, also told THISDAY that electricity supply, which had improved in the state capital, has been epileptic for the past few days.

He, however, stated that the residents of the city had attributed the worsening supply of electricity in the state to the heavy rains, which have been falling in the area in the last couple of days.

Kano State has also witnessed a significant drop in electricity supply in recent days. A civil engineer, Mohammed Bello, while lamenting the return of epileptic electricity supply, wondered why PHCN had not even issued a statement explaining why output had dropped.

"If it is gas, they should let us know, if it is system failure, they should let us know. They owe us some kind of explanation," he said.

A source with the Power Holding Company of Nigeria (PHCN), who spoke to THISDAY, blamed the situation on damaged distribution and transmission facilities, which have not been fully repaired.

It was also gathered that the drop in electricity supply was occasioned by the loss of about 1,100 Megawatts of electricity from the national grid.

This development, it was learnt, has fuelled speculation that the workers of the successor companies of PHCN, who have been celebrating Nnaji's exit, have resorted to their business-as-usual work ethic.

THISDAY gathered that power supply, which peaked at 4,321.3MW when Nnaji resigned as minister on August 28, and remained at the same level up until August 31, has continued to dwindle daily, with the system witnessing a partial collapse on September 7.

Shortly before the former minister resigned his appointment, the country achieved a new high in power generation of 4,307.7MW and an additional 170MW, which served as spinning reserve, bringing the total quantum of electricity generated to 4,477.7MW.

This new peak exceeded the record level of 4,237MW achieved on August 6 by 240.7MW.

Before Nnaji was appointed minister in 2011, the first attempt by the country to generate 3,800MW in August 2010 led to the collapse of the system within a few minutes due to the weak transmission infrastructure.

However, it was learnt that the power situation worsened at the weekend as supply dropped to 3,224.3MW on Saturday, after peaking at 4,077MW earlier in the day.

Some of the power stations that were the worst affected by the drop in supply include the Geregu Power Station in Kogi State, which was generating an average of 210MW per day, but dropped to 10MW at the weekend. The drop in power output at Geregu was blamed on shortage in gas supply.

Similarly, the Okpai Power Plant in Delta State, which was generating 466MW per day but has also dropped to 276MW, while Sapele dropped from 180MW to zero.

The Omotosho Power Station in Okitipupa Local Government Area of Ondo State, which is under the National Integrated Power Projects (NIPP), also witnessed a drop in generation from 230MW to 167MW. While electricity generated from the Egbin Power Station in Lagos, the biggest power station in the country, dropped from 900MW to 453MW.

A source, however, blamed the drop in output from Egbin to lack of gas, as the turbines are ready to generate about 800MW, subject to the availability of gas.

Power generation from Kainji Power Station also declined to 187MW from 193MW, while Jebba, which was generating 402MW, dropped to 385MW.

Afam IV Power Station in Rivers State has also witnessed a drop in performance with generation falling to 315MW after peaking at 458MW.

With the fall in supply, the highest voltage recorded at the weekend was 347KV at the Benin Transmission Station, while the lowest was 290KV recorded at the Kano Transmission Station.

Sources attributed the drop in output from several of the power stations to the poor attitude to work by PHCN workers and lack of effective supervision.

A power ministry source confirmed this, saying when the former minister was in office he kept the CEOs of all the power companies and their executive directors on their toes.

"You know the ministry had signed service level agreements with all the CEOs and the minister had an effective monitoring mechanism to ensure that output was raised and sustained.

"But without anyone breathing down their necks, most of them are beginning to relax; that may be the reason we are beginning to experience epileptic power supply again. In addition, the dry season is not yet upon us yet, so we should be edging up to 5,000MW by now, not retrogressing," he explained.

Also, the dwindling performance in power generation and distribution has been blamed on the lack of commitment by government, as nobody appears to be in-charge in the absence of a power minister.

Nnaji, during his tenure, was able to whip workers in the sector in line and was the only known minister to have fired top officials of PHCN for non-performance and failure to meet their targets under the service level agreements.

Although President Goodluck Jonathan had directed Minister of State for Power, Mr. Darius Ishaku, to take charge of the ministry after Nnaji's resignation, sources said Ishaku lacks the hands-on experience required to effectively tackle the rot and pervasive incompetence in the system.

Jonathan, while reconstituting two committees on the power sector, last Wednesday, had pledged to sustain the stable power supply in the country, even after the rains.

The two committees, whose reconstitution was triggered by Nnaji's resignation, are the Presidential Action Committee on Power (PACP) and the Presidential Task Force on Power.

Jonathan, at a meeting with members of the reconstituted committees acknowledged that Nnaji's resignation had stalled the meeting of the PACP.

This Day

Related story: Power minister Prof. Bart Nnaji resigns

Nigerian pension fund found stashed in UK bank

An investigative panel set up by the Federal Government to audit existing financial activities around the controversial Power Holding Company of Nigeria, PHCN, Superannuation Pension Fund has uncovered about £2,204,814.18 million company's total pension sum stashed away in a bank in the United Kingdom (UK).

The money which has been lodged in the UK's Barclays Bank for close to 21 years was said to have accumulated from pension deposits for expatriate workers of the utility by its officials long before it metamorphosed into PHCN.

Chairman of the eight-man government audit panel on PHCN pension, Mr. Joseph Ajiboye who is also a former Auditor General of the Federation, AuGF, said however that the panel could not ascertain if officials of PHCN had continued to remit pension and gratuity deductions to the said foreign account considering that the last expatriate pensioner of the utility is reported to be late.

Presenting the report of the investigation yesterday to the Minister of State for Power, Mr. Darius Ishaku, Ajiboye explained that its consideration of various financial audit activities of the in-house pension scheme of the company showed that its failure to fund the scheme was based on an excuse that it has perpetually operated at commercial loss, especially within these periods.

He noted that financial audits of the scheme from 1990 to 2010 which it studied in a bid to ascertain transactional trends in the account showed that from 1990 to 1999, a total of N1, 787,919 billion was paid out as pension and gratuities to workers while N51, 279,940,138 was paid out in the years 2000 to 2010.

The panel's report also indicates that PHCN has in the past 21 years failed to fund its in-house pension scheme, thus putting the future of its retiring workers in jeopardy. The report disclosed that currently the electricity behemoth has no money to fund the pension scheme.

It also discovered that some of PHCN assets which were assigned to fund the pension scheme had been purportedly sold off.

According to Ajiboye, the financial documents studied by the committee showed that a total of N5,367,859,138 was paid out as pensions and gratuities to PHCN workers within these periods, adding that an actuarial sum of N107 billion was equally set aside by the utility as contingent sum.

The immediate past Minister of Power, Prof. Barth Nnaji set up the panel with a 30-day lifespan to investigate the status of pension in the power sector vis-à-vis the pension laws, identify officers involved in any act of misconduct in the management of pension as well as review pension matters in the Agari committee report.

This was following allegations of illegal operation of and deductions from an in-house pension scheme that runs contrary to extant pension laws in the country,

The panel was also expected to recommend measures to guard against occurrence of similar incidents in the future as well as sanctions against culprits.

The report said PHCN has for years operated an in-house defined pension scheme codenamed "the superannuation pension fund", with only the management and leaders of its trade unions as its trustees; this arrangement however runs contrary to provisions in the Pension Reform Act (PRA) 2004 which came into operation in 2007, and has however been frowned at by the Federal Government.

According to Ajiboye, "When we looked at all the financial statements that had been audited as far back as 1990, we found out that between 1990 and 1999, the total pension and gratuity paid under the superannuation fund was N1,787,919 billion, both gratuity and pension were less than N2 billion paid and it is understandable because of the low level of salaries and wages paid in the 90's.

"From 2000 to 2010, the total pension and gratuity paid was N51, 279,940,138 and so for the 21 years running, the total gratuity and pension paid under the superannuation fund to all pensioners was N5,367, 859,138, that is all that has been paid since 2010 and these accounts had been audited and confirmed as real and applicable figures."

He further noted that, "We had an issue of N107 billion which was an actuarial valuation and was a contingent liability; it is not as if any money was paid out of that.

"We also spoke with the National Union of Pensioners who gave us a historical background of the scheme which they traced to the ECN and the Niger Dam Authority and how the issue of 25 percent arose; we have a paper from them that shows that there was no deduction of the percentage from the salaries of any worker up till April this year, they also showed evidence that when the ECN and Niger Dam were collapsed into one, they all decided to maintain one scheme but it was not contributory.

The panel further observed that "certain properties were given to the superannuation fund to bring income in addition to whatever PHCN would contribute but unfortunately we found out that one of the properties in Kado Abuja was purportedly sold and we didn't find out if there was any money remitted from such sale.

"Another one is a storey building in Lagos that was ceded to the Federal Inland Revenue Services by PHCN because it was owing taxes that it could not pay. The recurrent expenditure of PHCN is not provided by the government but its capital expenditure.

"We found out that a total of £2,204,814.18 million of PHCN pension money is still in London laying idle as accumulated monies from pension deposits for expatriate workers of the former ECN and Niger Dam Authority; we understand that there have been efforts to retrieve the money that is lying idle in the Barclays Bank," Ajiboye stated.

The panel however recommended amongst other things that a full audit of accounts of PHCN successor companies be carried out to ascertain their levels of accountability with funds given to them by the Market Operator.

Ishaku in his remarks, expressed gratitude to the panel which he noted had done a thorough job that will quicken outstanding negotiations with PHCN unions on the privatisation exercise.

Vanguard

Video - Sacked Air Nigeria staff protest

Former staff at Air Nigeria say they've been unfairly sacked.

The airline announced it was shutting down operations on Wednesday, and fired nearly 1,000 people.

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Nigeria third best amongst African nations in 2012 Paralympics

As the 2012 Paralympic Games rounded off in London on Sunday, no fewer than 10 African countries made the medals table, winning a total of 112 medals over the 11 days of the Games, Aug. 29 to Sept . 9.

African nations' performance at the Games represented a marginal improvement over their performance at the last Paralympic Games in Beijing, China, in 2008, where only eight nations made the medals table.

The 10 African countries notched up 112 medals, made up of 38 gold, 36 silver and 38 bronze medals.

Nigeria, which led Africa's medals table from the beginning of the games, was beaten to the third place by Tunisia.

Tunisia, now Africa's number one at the end of the Paralympic Games, won 19 medals - nine gold, five silver and five bronze, to beat South Africa, which had 25 medals - eight gold, 12 silver and seven bronze medals - to the second position.

Nigeria, which placed third with 13 medals over all, had six gold, five silver and two bronze.

Nigeria, however, ended up the Games' overall number one winners of the Power lifting event, from where it won 12 of its 13 medals.

Algeria placed fourth with a total of 19 medals - (4-6-9), Egypt had 15 (4-4-7), Morocco (3-0-3), Kenya (2-2-2),

Others are: Namibia (1-1-0), Angola (1-0-1) and Ethiopia (0-1-0). (NAN)

Vanguard

Related story: Nigeria wins gold and sets new world record in paralympics

Central Bank says 5,000 Naira note will reduce inflation

The Central Bank of Nigeria and its agents have been very active, as should be expected, in promoting the merits of the proposed N5000 note. To this end, the apex bank also set out to dispel what it alleges to be disinformation regarding the proposed exercise.

In its widely published one-page advertorial titled, False Rumours on Currency Restructuring, CBN refutes the reported vote of N40bn set aside for this exercise. It is not clear why the CBN waited so long before it refuted the widely quoted value of N40bn in the media; regrettably, however, the apex bank still failed to reveal the estimated cost projection for the project, so that its cost/benefit can be appropriately publicly evaluated.

Central Bank was also eager in its advertorial to confirm that the contract for the proposed currency restructuring has not been awarded. In reality, the issue of contract award is neither here nor there, since CBN appears to have made up its mind, in spite of public opinion.

In earlier press releases, CBN indicated that the concept and designs were completed locally at minimal cost. CBN's cause might probably have been better served, if it had also transparently declared the originating cost as well as the expected savings on the cost of currency management in the country.

Nonetheless, it will be hard to fault the public's lack of confidence on any promise of benefits from such cost savings; for example, the adoption of the cashless programme was touted to reduce banks' operation cost by over 30 per cent, so that ultimately, the banks could support the real sector with single-digit borrowing cost. Inexplicably, this expectation has remained unfulfilled!

Incidentally, in the advertorial under reference, CBN recognises that our currency management costs are influenced by frequency of usage and poor handling. However, CBN's belief that a promo campaign would, on its own, lead to greater respect for the naira and better currency handling, is however, patently unfounded. In truth, adoption and respect for currencies everywhere is based on the recognition of the purchasing value of the currency unit.

In a situation, for example, where N50, the least note denomination, under the proposed restructuring, cannot even purchase one finger of plantain, it is most likely that the funds spent in the production and promotion of the new N20, N10, N5, N2 and N1 coins would be money down the drain!

It is also surprising that CBN identifies the possibility of more precise rounding up as an advantage of the proposed new coin profile; this is, undoubtedly a tongue in the cheek claim, as the new profile has already inherently rounded up primary kobo denominations!!

Nigerians who can remember clearly recognise that coins fell out of favour because they lost any meaningful purchasing value, and it was no surprise when they ultimately found favour with metal brokers. Besides, it is clear that the initial cost of production and destruction of the existing currency profile has not been consciously captured as added cost to the projected expenditure on the new currency structure.

Furthermore, the apex bank's advertorial maintains that "currency restructuring does not cause inflation in any form whatsoever, as it will not increase money supply." This observation, of course, is unassailable, if all things remain equal; in other words, so long as the velocity or the speed of spending money remains the same, there will be no increase in money supply.

If on the other hand, the N5000 note, for example, is speedily offloaded on receipt in order to unbundle the value, there is no doubt that the velocity of currency in circulation would increase and create the same impact as increase in money supply; so, CBN's claims that the N5000 note will not induce inflation needs to be qualified!

Inexplicably, the CBN advertorial further stretches the argument on inflation, when it suggests that "currency restructuring may actually help in tackling inflation"! If indeed reduced inflation rates coincided with the introduction of higher denomination notes in the past, the apex bank has not provided evidence that the drop was the direct result of higher denominations introduced.

Indeed, any insistence of a causative relationship will be an outright contradiction of CBN's open admission that inflation is the product of increase in money supply, as the converse of that is that lower inflation rate is the product of reduction in money supply.

In other words, if higher denominations do not increase money supply, CBN cannot also prove that higher denominations will reduce money supply and lower the inflation rate, especially when it is incontestable that the proposed higher denomination, in conjunction with the cashless programme and coin profile, will ultimately increase the velocity of money in circulation with the same result as increasing money supply.

Vanguard

Related story: Video - Nigeria introduces new 5,000 Naira bank note

Nigeria draw with Liberia in Nations Cup qualifier

The Super Eagles Saturday night played a 2-2 draw with the Lone Star of Liberia in the first leg of the 2013 Africa Cup of Nations qualifying match in Monrovia.

After the hosts shot into an early lead in the 5th minute through Tonia Tinsdel, the AFCON ticket seeking Eagles responded with brilliant exchanges between the forward line marshalled by the trio of Ikechukwu Uche, Victor Moses and Emmanuel Emenike.

That soon paid off in the 15th minute as Nosa Igiebor cashed on a loose rebound ball from Emenike's effort to equalise for Nigeria.

The Eagles then seized the moment, temporarily putting the Liberians under intense heat.

Twice Uche had the chance to score but missed. Chelsea new boy, Moses was however hacked down in the box in the heat of pressure that ensued in a goal mouth melee. Uche effortlessly put the resultant penalty kick into the wrong side of Nathaniel Shirman in goal for the Liberians

What would have given the Eagles a clear advantage in the dying minutes of the first half was blown by Uche. After rounding the Liberian keeper and having only an empty net to tap the ball into, shot wide.

On resumption for the second half, the pep talk by Coach Stephen Keshi did not appear to do any magic.

The Liberian forward trio of Tisdell, Sekou Jabateh Oliseh and Zah Kranger ceaselessly piled pressure on the Eagles.

A pile driver fired by Kranger beat Vincent Enyeama but hit the upright and rebounded for the Nigerian keeper to grab. Another effort scored by the Liberian was adjudged to have been fired from an off-side position.

Deep into the game, Oliseh who had turned Juwon Oshaniwa and Godfrey Oboabona into his toys, walking through them with relative ease, grabbed an equaliser that sent the entire 40,000 capacity crowd at the Samuel Kanyon Doe Stadium into frenzied celebration.

He tapped a lob from the right flank beyond a badly positioned Enyeama. The hosts then began to push deep into the Nigerian half to keep every Nigerian present at the stadium on edge.

The decisive return leg that would determine whether will again miss another AFCON is slated to hold in the weekend of October 8 or 9 in Calabar.

This Day