The New Electricity Tariff

Sun News Publishing, July 05, 2011

 

The increase in cost of electricity from N8.50 to N10 per kilowatt-hour from July 1 has been generating ripples across the country. Many people, largely unimpressed with the continuing poor power supply in the country, have queried the justification for increasing tariff at a time that supply of the product is grossly inadequate.

Already, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have condemned the decision to effect the increase. They told the government to have a rethink on the matter, as the country cannot develop without access to affordable electricity.

The Nigerian Electricity Regulatory Commission (NERC), however, insists that the increased price regime is not new as it is only the implementation of rates approved under the Multi-Year Tariff Order (MYTO) in 2008.

The NERC Chairman, Sam Amadi, said the adjustment of the average cost of electricity is part of the MYTO, which provides for increase in price of electricity every five years. The increase is also in keeping with Section 76 of Electric Power Sector Reform Act 2005 which provides that electricity tariff be auto-adjusted to reflect current cost of gas and general inflation.

The NERC is well within its rights to forge ahead with strict implementation of the MYTO. In fact, pricing is not the critical problem with electricity in Nigeria but adequate supply. Inflationary trends in the economy suggest that an increase in the cost of a kilowatt-hour of electricity by N1.50 in five years is not outrageous. The major problem is that there is no remarkable improvement in the supply of this critical product. The little noticeable improvement in power supply just before the elections fizzled out as soon as the polls were concluded. It is this failure to meet the expectations of the people for regular power supply that makes the idea of an increase in tariff unjustifiable.

The challenge before NERC and the authorities, therefore, is to give Nigerians adequate electricity to justify this increase. The Federal Government should be resolute and creative in finding a solution to the problem. All legal bottlenecks preventing private investors from investing in the sector should be removed to allow those who can help to redress the situation to come in. There is no good reason why private investors cannot generate and distribute electricity in the country.

Over the years, Nigerians have been inundated with information on various efforts by government to improve power supply. All these efforts have up till now not yielded the desired result. Let the president and his team work round the clock to remove every impediment to efficient power supply. There should be regular maintenance of power stations while shortage of gas should be addressed.

The stations should be made to work at full capacity. Government must be serious about keeping power generation stations in top shape. The authorities should also be decisive in dealing with those who sabotage electricity supply. Let the government wield its powers to effect a change in the sector.
Nigeria must also strive to diversify source of power supply. The technology for wind and solar energy is available. Let it be properly utilised to improve electricity generation.

The government should also encourage Nigerians to use energy saving devices such as low-watt bulbs. Let import duty be reduced for such products. There is also need for behavioural change with regard to use of electricity in the country. The people should be enlightened on the need to put off all electrical appliances, including light bulbs, when not in use. Use of pre-paid metres will also reduce power wastage. Unfortunately, the supply of the metres has not been as expected.

It is also unfortunate that so much money has been spent on the power sector with little to show for it. Whatever happened to the probe of trillions of naira allegedly spent on the sector between 1999 and 2007? Without bringing those responsible for misuse of funds appropriated for power projects to book, corruption in the sector will continue to flourish.

Let the authorities put the zeal and efficiency demonstrated in ensuring timely increase in tariff to generation and distribution of the product. The president should fulfill his pre-election promise of improving electricity supply by seriously tackling the problems in the sector. Nigerians deserve better a better deal on electricity supply.

How N18,000 minimum wage was agreed upon

John Ofikhenua, Abuja and Jide Orintunsin, Minna, july 05, 2011, the nation 

The report of how N18,000 was agreed upon as the minimum wage between government representatives and the labour movement emerged yesterday.

The amount, it was gathered, was what state governments proposed during negotiations.

Also yesterday, the Academic Staff Union of Nigeria Universities (ASUU) backed the two-week ultimatum given the government by labour to pay the minimum wage or face a strike.

According to a report on the Tripartite Committee on National Minimum Wage, which our correspondent obtained from the Nigerian Labour Congress (NLC) Headquarters in Abuja, Abia State proposed to pay N46,700, Kebbi proposed N30,000, Imo proposed N30,000 and Kwara N30,000. Bauchi proposed N16,585.50, the Federal Capital Territory N25,000, Zamfara N15,000, Jigawa N20,800, Plateau N10,000, Anambra N25,000 and Ebonyi proposed N10,000. Akwa Ibom proposed N13,333.12 and Kano N11,022.17. The average of the various proposals by representatives of state governments, came to N21,800. N18,000 was adopted as the uniform monthly minimum wage for workers across the country.

The document was jointly signed by representatives of the Minister of Labour and Productivity Ministry, Chief Emeka Wogu; the former Minister of State for Finance, Mr. Remi Babalola; Nigerian Labour Congress President Abdulwahed Omar, President of Trade Union Congress, Peter Esele and representatives of the states and other stakeholders.

Wogu said yesterday that in a country where true federalism is practised, it would have been improper to dialogue with the state governors on the minimum wage.

He spoke during a visit to the NLC President in his office in Abuja.

Wogu however said since the minimum wage issue could trigger a national crisis, he could intervene.

“The issue of talking to the governors or intervening, the President of NLC alluded to the fact that we will discuss issues but he would appreciate if I can intervene.  But usually in my own thinking, it wouldn’t have been proper for me to intervene if federalism is practiced in its true form.

“But because we have a crisis in our hands, it is a national crisis that is looming; I think if it gets to my point of intervening at that level, I am fit to intervene. But we are just beginning to look at the issues and I think I will be more proactive now.”

The minister said it would take a mutual dialogue to resolve the labour crisis by coming to deliberate on it with sincerity instead of “them versus us.”

Omar said the Federal Government ought to have implemented the national minimum wage to set example for the states but it has not shown the example.

Rising from its National Executive Council (NEC) meeting at Federal University of Technology (FUT) Minna, ASUU urged “all Nigerians to say ‘No’ to this betrayal by participating massively in mass actions that may be called by the labour and patriotic organisations to fight the betrayal.”

ASUU National President Prof. Ukachukwu Awuzie, said the union was in full support of the ultimatum given federal government by NLC and TUC, adding that the union would mobilise its members across the country to support the strike.

ASUU observed with sadness that the situation in the country was worsening. The union is also worried by what Awuzie called over bearing influence of international financial institutions, such as the International Monetary Fund (IMF) and the World Bank on the country’s economy.

ASUU said the policies of the two international bodies “do nothing but destroy the economies and societies of the third world countries”. The union lamented that rather than waking up to this reality, the federal government seems intent on continuing with the liberalisation of the economy and privatisation of the economy in line with the World Trade Organisation (WTO) demands.  

The ASUU President berated the Nigeria Governors’ Forum for calling for the removal of subsidy on oil products. According to the union, the governors’ position is “wicked, insensitive and a ploy to avoid assuming responsibilities on behalf of the Nigerian people.”

The union also took a hard look at the federal government’s upward review of electricity tariff from N8:50 per unit to N10:00. Decrying the development, ASUU said, “this quantum increase is most insensitive and callous”, alleging that the increase is to prepare the ground for the privatisation of the power sector.

According to Awuzie, “The huge amount being squandered on failed private sector enterprises should be used in building public sector enterprises and providing for a leadership role for government in the development process. We want to insist that government and not the private sector should lead the development effort in Nigeria.”

SSS Grills 100 Boko Haram Commanders Over Blasts

Saxone Akhaine (Kaduna), Daka Terhemba (Abuja) and Tunji Omofoye. (Osogbo), 05 July 2011, the guardian 

Demobilises 12 home-made explosives

THE Federal Government seems to have penetrated the leadership of the destructive Boko Haram sect as its agencies hinted yesterday that their offensive against the group in six states had paid off.

An official of the State Security Services (SSS) disclosed yesterday that the agency has arrested over 100 “cell commanders” of the terror group in Bauchi, Borno, Kaduna, Kano, Yobe, and Adamawa states.

The agency, however, declined to comment on what transpired between it and former Federal Capital Territory (FCT) Minister, Malam Nasir El-Rufa’i, who it arrested last week in Abuja, as it simply said “the issue ended on a good note.”

SSS Assistant Director of Public Affairs, Marilyn Ogar, who briefed journalists yesterday in Abuja on the organisation’s activities, said “details of those arrested will remain classified as they are still undergoing the process of de-radicalisation, perception management and also try to win their confidence back to the society.”

She further explained the decision not to disclose the identity of those detained for “strategic operational reasons.

“At the end of the exercise, we know what to adopt. They are Nigerians, and we have to talk to them to drop their reasons.

“We have arrested key commanders of the cell, and you know we are still grappling with the killing of Mohammed Yusuf, so we cannot charge anyone to court for now,” she said.

Specifically, the SSS spokesperson stated that between May 2011, the agency had demobilised eight Improvised Explosive Devices (IED’s) concealed in small and medium size tins beneath a staircase in Kafanchan, Jema’a Local Council of Kaduna State.

Meanwhile, Governor Rauf Aregbesola of Osun State, has linked the festering violence in some states to the social injustice and economic inequality prevailing in the country.

He noted that the Boko Haram attacks and other similar ones might not be unconnected with disenchantment by Nigerians, who are frustrated by the maladministration by their leaders.

He spoke yesterday at the swearing-in of a newly appointed Judge, Mrs. Kudirat Morayo Akano.

In his speech titled: “Where would we have been without justice,” the governor said frustrations caused by lack of justice and widening economic gap between the privileged and the disadvantaged might be responsible for the insecurity in Nigeria.

He said those in power must govern with the fear of God and embark on programmes that would alleviate the suffering of the citizens.

“To bring it home, we are witnessing instability and insurrection, bomb blasts and targeted killings, especially of law enforcement agents. These are terrorist acts condemnable in all ramifications.

“The appropriate authorities have responded with a resolve to crush the monster and even their sponsors in order to restore peace to the affected communities but we would need to do more by addressing the root causes of the problems,” he said.

Also, former Kaduna State Governor Ahmed Mohammed Makarfi and the Secretary of the Northern Traditional Rulers’ Council and Hamman Bachama, Homun Asaph Zadok, have admonished politicians to galvanise Nigerians towards the nation’s unity. They said the political class should be held responsible for the recent post-election violence in some northern states.

The two leaders spoke at the first Kaduna chapter of the Nigeria Union of Journalists (NUJ) Roundtable Discussion with the theme, “Post-election violence: The way forward.” It was held at the Arewa House, Kaduna.

Makarfi, who was special guest at the occasion, noted that Nigerians went into the April general elections with divisive minds rather than unity.

He pointed out that rather than for politicians to anchor their programmes on “issues” that would unite the country, they went into the race with disunity and divisive minds.

The development, he explained, was a clear recipe for the post-election violence that rocked some parts of the North.

Makarfi also carpeted the sixth National Assembly for not passing the Electoral Offences Bill, which would have taken care of the unfortunate crisis.

According to him, the conduct of politicians even before and after the April elections left a lot to be desired as some of them practically bragged that “because they are in power that the election outcome must represent what they desired.”

The former governor and senator also blamed security agents for failing to analyse the situation before the elections, stressing that such move would have prepared state governors to nip the post-election violence in the bud.

On his part, Bachama said a revolution was looming in the country and that Nigerians and their leaders must not pretend about it, adding that with all the comforts in the Arab world, there was still protest in that part of the world.

Zadok, identified institutional decay as being responsible for most of the myriads of problems in the country just as he explained that “unless we get out of the culture of rubbishing the integrity of institutions, we will not get it right.”

Earlier, NUJ Chairman, Alhaji Yusuf Idris, said violence in any form would never be a solution to any problem, rather “the aftermath of it has always been regrets on the part of the perpetrators and agony on the part of the affected.”

Tension Over Boko Haram’s Plot To Bomb Bridge

EMMANUEL ADEYEMI, Lokoja, LAMBERT TYEM, Abuja and REMI ADEFULU, Lagos. July 05, 2011. The Sunnews

• SSS arrests 100 suspects 

There is tension in Kogi State over alleged plot by members of Boko Haram to bomb the popular Jamata/Murtala bridge linking the northern and southern parts of the country even as the State Security Service (SSS) said it has arrested 100 suspects in over six states.

The development came less than 24 hours after police foiled another plot by the Islamic fundamentalists to bomb the headquarters of the Nigerian National Petroleum Corporation (NNPC), located at Central Business District, Garki, Abuja.

The same group of fundamentalists attacked the Nigeria Police headquarters, Louis Edet House, Abuja on June 16. The sect was said to have sent text messages to some security outfits in Kogi, warning them of their imminent incursion into the state.

A source confided in Daily Sun that Itobe Bridge, which links Eastern part of the country to Kogi State was also a target to be bombed by the sect.
Due to this threat, the source hinted that eagle-eyed operatives have been ordered to mount a 24-hour surveillance in and around the two bridges and to patrol the Rivers Niger and Benue by boats.

The source noted that as a result of a serious crackdown on the sect by security forces in Borno State and the North-East in general, security reports have confirmed that the dreaded Islamic group plans to move to Kogi, Nasarawa and Niger states.

The source added that a particular Muslim sect, called Abayi, in Adavi Local Government Area of the state had been put under surveillance as their operation is similar to that of the Boko Haram.

The source said that some flashpoints in the state are under watch as they have stepped up surveillance in all nooks and crannies, especially during evenings around the state capital, Lokoja.
The source, however, pointed out that Boko Haram, which had occupied 12 states, would not be allowed to enter Kogi, adding that the state is a no go area for the group.

According to the source, all commercial motorcycle operators, popularly called ‘Okada’, operating in the state have been mandated to register their motorcycles and must always wear jackets that will reflect the registration point of the motorcycles.

Boko Haram, meaning ‘western education is sinful’, commenced operation in the country in 2009 when it launched

simultaneous attacks on police formations in Bauchi, Yobe and Kaduna states to free arrested members.
Since then, the group had launched vicious attacks on government properties, churches, relaxation centres, police formations while claiming responsibility for the bomb attack on Bauchi military barracks on May 29, 2011.
Recently, it pledged a ceasefire if 12 states in the North can adopt the strict Sharia legal system as well as the resignation of Borno State Governor Kashim Shettima.

Meanwhile, SSS spokesperson, Marilyn Ogar said the agency has arrested over 100 Boko Haram suspects in six states of North -East and North-West, which are Borno, Bauchi, Kaduna, Kano, Yobe and Adamawa. According to the SSS, the suspects would not be prosecuted because President Goodluck Jonathan has decided to adopt a political solution to resolving the Boko Haram problem.

Ogar, however, explained that since the President has decided to use “carrot and stick” approach on the suspects, the SSS would not go contrary to such strategy, saying that is why the suspects would not be prosecuted. The SSS spokesperson stressed that those arrested are already helping the security agents in investigations and information on activities of the sect.

She said as a result, the SSS on May 23, June 10, 14, 27 and 29 discovered and successfully demobilized eight Improvised Explosive Devices (IEDs) in Kafanchan, one in Goni Gora, Dambo International College, all in Kaduna State.

SSS also said it also received information  from some patriotic Nigerians and recovered components of yet-to-be assembled explosive which includes a gas cylinder with a pin, detonating cables, a bottle of distilled water, pliers, masking tape and clips in a hotel in Kaduna, adding that the bomb was meant to be detonated in a shopping mall in the city.

Similarly, SSS explained why a combined team of the military mounted roadblocks on the entrance routes of the Federal Capital Territory (FCT), saying that it was because of a security report on the likelihood of the Boko Haram planning other attacks in some places in Abuja.

According to the SSS, “it is appropriate to apologize to peace loving citizens especially residents of the FCT and its adjoining communities for the temporary inconveniences they are experiencing. This has become necessary in the interest of our collective safety. “We must all continue to remain conscious of the fact that security is everybody’s business and the effect of such routine security procedures should be considered as part of the little sacrifices we all have to pay for our collective safety,” the Service stated.

Ogar also noted that in view of the security challenges confronting the nation, the SSS would henceforth collaborate with all hotel owners in the country especially in Abuja on records of their customers.
She said any hotel customer found to have lounged in one hotel for up to one month will be queried, stressiong that except customers whose identity is that of a person of proven integrity.

Meanwhile, the Movement for New Nigeria has called for a new constitution to replace the 1999 document, as one of the ways to tackle insecurity and similar challenges facing the country.
Speaking to reporters in Lagos, the President of the group, Chief Fred Agbeyegbe, said this was in view of the fact that the 1999 Constitution had failed Nigeria.

According to him, this was evident in all sectors, turning Nigeria into a failed state.
Specifically, he said since the Boko Haram had expressed loss of confidence in the document and opted for Sharia, the need to take another look at the document has become expedient.
He recalled that even when the Movement for Emancipation of Niger Delta (MEND) bombed Abuja last year, it equally faulted the Constitution.

The elder statesman stressed that though the United States had warned that the country may collapse by 2015, signs of a failed state were all over the country already.

Banks Seek Police Nod To Declare Debtors Wanted

Enitar Ugwu, 05 July 2011 the guardian

RECALCITRANT bank debtors are in for a rough deal if feelers from the nation’s financial sectors are anything to go by.

Reason: Banks in the country at the weekend submitted to the police names of debtors they suspected have the means to pay up their debts but have simply refused to do so out of seer impunity as well as those who obtained loans with fake forwarding addresses or debtors who switched addresses without notify the banks accordingly, for a nationwide crackdown.

As part of this development, the banks have also sought police permit to declare these categories of debtors wanted in the media.

Sources in the banking sector told The Guardian that the police would soon publish the pictures, names and submitted addresses of such debtors in some national dailies.

According to the Central Bank of Nigeria (CBN), non-performing loan in the banking sector, especially in the eight rescued banks, is above N1 trillion.

Also, ahead of the pronouncement of the Asset Management Corporation of Nigeria (AMCON) that it would soon terminate all existing contracts banks had with debt recovery agents, the banks and such agents have resorted to the massive deployment of police personnel to recover some of such debts.

Managing Director, AMCON, Chike Obi, last week in Lagos hinted that the corporation would terminate all existing contracts banks had with debt recovery agents, adding that it would re-appoint only those who had been transparent and thorough.

Obi also disclosed that AMCON would soon unveil its new policy on debt recovery.

His words: “We are going to announce our debt collecting formula to the world.”

Apparently owing to that policy pronouncement, most banks mid last week held meetings with their debt recovery agents to chart a way forward, The Guardian learnt.

One of the outcomes of the meetings was the decision by the banks to send their officials to the office of the Special Fraud Unit at Ikoyi, Lagos, requesting police to help recover the debts.

Last week, the AMCON chief also acknowledged that the corporation had acquired 90 per cent of all non-performing loans in the banking sector.

Speaking with The Guardian on effective debt recovery strategy, Chief Executive Officer, Debt Recovery Institute and Managing Director, First Stallion and Associates Limited, Akintunde Opeodu, noted: “Banking crisis is not all about credit, but the ability to recover loans. Banking credit administration has been poor in the country with its ‘man-know-man’ arrangement. Nigeria banks are wonder banks, as facilities are not really given to the business public.”

Opeodu also stressed that “except priority is given to debt recovery, non-performing loans will continue to be the major challenge of banks in Nigeria. Competent hands must also be placed on the right seats. Priority must be given to who is in credit and debt recovery department. In many countries of the world, banking is not all about lending out credit, it is also about being able to recover the principal facility and interest.”

Non-Interest Banking: Imperatives In Global Financial System

Bukky Olajide, 29 June 2011 the guardian

Top of Form

Is a bank not making mountain out of a molehill  when you borrow N200,000 and has to repay it with not less than N5 million as interest, after about a decade of non-repayment of the loan? The way lending rate operates is one of the reasons why proponents of non-interest banking canvass for interest-free banking. BUKKY OLAJIDE examines the relevance of interest-free banking in a dynamic global financial system.

DESPITE its criticisms, interest-free banking is a thought provoking activity, which demands organised approach because of its delicate religious implications.

While conventional banking demands that banks charge you for approving your loan, you still have to pay for the risk that the bank has taken for granting you the loan in the first place.

On the other hand, interest-free banking demands that only the proceeds or profits of the loan taken will be shared between the loan giver and the taker.

Non interest banking is a banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics.

Islamic banking is actually based on Islamic law, that is, Shariah. This means ,this particular form of banking must follow the Islamic rules on transactions.

The first Islamic bank was established in Malaysia in 1983. By 1993, commercial banks, as well as, finance companies started offering Islamic banking products and services under the Islamic Banking Scheme (IBS banks) interest-free banking is not new. Many people operate it all over the world. In Sweden, a co-operative member set up tagged: JAK operate a bawl that charges no interest on its loans (a principle of shares with Islamic banking).

JAK operate under the premises that the taking of interest is inimical to a stable economy while interest causes unemployment, inflation and environmental destruction.

On the other hand, the conventional banking system takes huge amounts of money as interest from the borrower whether the venture for which the loan was meant was successful or not.

Proponents of non-interest rate believed that the charging of interest sets up a growth compulsion in the economy and that, as perpetual economic growth is unsustainable, the development of a non-interest banking system is a key step towards building a sustainable economy.

In the beginning, Islam, as well as, Roman Catholic Church frowned on interest. This was because, gold was used as currency and therefore as means of borrowing. Since gold does not multiply itself, asking the borrower to pay interest is simply trying to impoverish him.

Like a lot of people frequently asked: Is Islamic banking meant for Moslems only ? Of course not, Islamic banking is for all individuals regardless of their religious belief.

The difference between Islamic and conventional banking is the fact that Islamic banking must follow the Shariah based on transaction rules, among whom, is the ‘Mudharabah.’

Mudharabah is a profit sharing arrangement between two parties, which is usually an investor and an entrepreneur. Since Shariah prohibits the payment or acceptance of specific interest or fees known as Riba or Usury for loans of money, investing in business that provide goods or services considered contrary to Islamic principles is also forbidden. (Haraam)

The interest-free banking demands that the lender must have a share from the profits or the losses that occur to the borrower or the borrowing enterprises. Sharing profits, as well as, losses is therefore mandatory.

Interest-free banking is gaining ground not only in Africa but also in Europe. Some European financial institutions now offer financial services on interest-free basis while some multi-national banks have opened separate divisions, commonly known as Islamic windows.

Because of peoples’ interest in this kind of banking, Dow Jones Islamic Market Index has been created for people, who wish to invest according to Islamic investment guidelines.

Using turkey as a case study of a country that practices interest-free banking, as a secular Moslem country, Turkey made a particular effort in the early 1980’s to encourage capital inflow from the Middle East and North Africa (MENA) region.

To achieve this, interest-free financial institutions were introduced to the financial markets in 1985 while the special financial houses were established to offer interest-free products and services.

Saduman Okumus, who did a research on the study of the theoretical and practical aspects of interest free banking in Turkey attempted among other things to assess the degree of customer awareness.

The awareness was made simpler because 97 per cent of the population are Moslems.

Consequently, Okumus decided that non-interest banking can be used as basis for savings and financing schemes that suit the socio-demographics of the customers.

This is by way of making the quality of service and the products and services offered to be compatible with the principles of interest-free finance, as well as, with the facilities of the conventional banks.

Meanwhile, in Nigeria, the introduction of non-interest banking has generated a lot of reactions. This is because people see it as a purely religious activity,

However, other Christian-owned institutions also seek to introduce interest-free financial products to serve clients regardless of their religion because they can now see that it ispart of the international financial system, which is an alternative system of financial management as opposed to the market-based conventional system whose excesses nearly collapsed the world banking system through junk derivatives as collaterised debt obligations backed by mortgages in the United States.

Meanwhile, The Central Bank of Nigeria has offered explanations regarding its recent actions on Islamic banking.

On the allegation that the governor is introducing Islamic banking as part of the alleged “northern agenda”, it explained that the fact is that Islamic banking/non interest banking (or whatever it is called) has already been approved by the CBN during the tenure of Prof. Chukwuma C. Soludo.

According to the apex bank, in fact, provisions of BOFIA Act 1991 as amended, Sections 9, 23 and 52 provided for the establishment of Islamic banking in Nigeria. Consequent upon this, the former Habib Bank was given an approval in 1992 to operate a window of Islamic banking, which is still operational with Bank PHB.

“The approval by the CBN under Professor Soludo saw the emergence of the proposed JA’IZ Bank, which has been working to raise the N25 billion capital base required. It is obvious therefore that Islamic banking was already in Nigeria years before Sanusi Lamido Sanusi became the governor of Central Bank of Nigeria,” said the apex bank.

Central Bank Is Not A Religious Regulator, Says Sanusi

Bassey Udo, July 5, 2011. 234next

Central Bank of Nigeria (CBN) governor, Sanusi Lamido Sanusi, yesterday made it clear to those opposed to the proposed Islamic banking policy in the country that the bank is not a religious regulator, saying its action has a constitutional and legal foundation.

Mr Sanusi, who was speaking at the opening of the two-day international conference on Non-Interest (Islamic) Banking yesterday in Abuja, urged critics of the new model to seek a redress at the court, as the bank is not doing anything illegal.

He dispelled insinuations that the new banking model was a design to Islamise the country, pointing out that non-interest Islamic and other conventional banking variants offer huge financial and economic development opportunities for Nigeria.

But, in spite of the raging controversy surrounding the recently released guidelines, indications are that the new banking model is growing in attraction, as two of the existing conventional banks have either applied for or approached the Central Bank for operational Islamic banking license to enable them commence operation in the near future.

According to the CBN governor, whereas Stanbic IBTC Bank Limited has actually received approval in principle to operate an Islamic banking window, Standard Chartered Bank has given indication of its intention to apply for a similar license, while other banks have also indicated interest to operate Islamic banks or windows that would offer interest-free products and services.

Both would join

Jaiz International Bank has already been granted CBN approval in principle to operate non-interest Islamic banking with regional authorisation in the country.

In the early 1990s, the CBN said two other applications from Al-Barka Bank and Al-Queda Bank processed for a similar license, did not meet the requirements for the granting of Islamic bank licence.

"Non-interest banking has undergone progressive evolution in the last four decades to become a dynamic and a new form of financial intermediation in the global financial system. It is being operated in about 475 institutions in at least 75 countries around the world, including major financial markets like London, Malaysia, Singapore and Hong Kong," he said.

On options open to critics of the banking model, the CBN governor said "anybody who feels Islamic banking is illegal should go to a court of law, because it is the only institution that decides if something is illegal or not. The Central Bank is not a religious regulator. If the court says it is illegal, we will stop it.

But, we don't think the court will say so, because we know it is constitutional and within the realm of the law." Scathing criticisms by some interest groups, have trailed the recently released guidelines on the new banking model in the country, particularly the Christian Association of Nigeria (CAN), which is alleging that the proposal is a ploy to Islamise not only the country's financial sector, but the entire economy.

However, Mr Sanusi has consistently defended the proposal, saying the banking model is not only made up of diverse financial products and services, but also progressive in development and regulatory guidelines.

"In line with the trend, some countries in the sub-region are creating enabling environment by developing regulatory guidelines for the banking model. Senegal and Gambia have non-interest Islamic banking operating in their countries, while other countries are at different stages of developing the guidelines.

Nigeria is the second largest economy in Africa, and potentially the largest market for Islamic financing in the continent, considering its size and population," he said.

Describing education as critical for awareness about the benefits of the new model, the governor said the conference was to create and deepen the awareness as well as identify issues and challenges to help in its successful operation in the country.

N’assembly Meets NLC, TUC On Minimum Wage

ADETUTU FOLASADE-KOYI, Abuja, July 05, 2011. The Sun News

Leadership of the National Assembly would soon meet to deliberate on the controversy surrounding the N18, 000 minimum wage across the federation.
In the absence of standing committees of the National Assembly that would interface with labour, Senate President, David Mark and Speaker of the House of Representatives, Aminu Tambuwal may anchor the parley before handing over to an ad-hoc committee, it was learnt yesterday.

The meeting is against the backdrop of a two-week ultimatum handed down by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to embark on a nationwide industrial action.

Workers had threatened to ground the economy unless state governors agree to pay the national minimum wage of N18, 000.
NLC President Abdulwaheed Omar and Peter Esele, TUC president general vowed to resist any move by government to deduct arbitrary tax from workers’ salaries.

Senate Leader, Victor Ndoma-Egba confirmed the intervention of the National Assembly leadership but declined to disclose when the meeting would hold.
But a ranking Senator privy to the meeting expressed surprise that state governors could do a u-turn on the agreement to pay the new minimum wage.

He, however, insisted that state governors were bound by the new law.
“The position of some state governors is surprising but we know it’s an economic issue. State governors have since ratified the decision of the National Economic Council. We all know that state governors are members of this body. They took a joint decision; so why the turnaround now?
“Well, they can’t back out now. The new minimum wage is already an Act; it’s already a law that they must obey. They have to pay.”
On November 25, 2010, the NEC met in Abuja and approved the monthly minimum wage of N18, 000 for workers in the country.

All federal, state and local government agencies were expected to pay the wage while only private organizations with more than 50 staff would be affected.
The NEC is the umbrella body of the governors of the 36 states of the federation and the federal economic team.
An amendment of section one of the National Minimum Wage Act stipulates that, “it shall be the duty of every employer to pay a wage not less than the national minimum wage of N18, 000 per month to every worker under his establishment.”
The Act had also provided for a revised national minimum wage and also provided for a realistic penalty regime for violations of the provisions of the Act.

It was also a day senators canvassed removal of the minimum wage from the Exclusive Legislative List so that workers all over the federation could enjoy the new minimum wage at the same time.

Boko Haram kills 10 in bloody weekend

Yusuf Alli, John Ofikhenua, Abuja and Abiodun Joseph, Maidugur July 4, 2011, the nation 

IN yet another bloody weekend, suspected Boko Haram members have killed 10 persons in Maiduguri, the Borno State capital.

The victims include a local government chairman. Many were injured in three attacks at different places in the city.

Government at the weekend took a major step to stem the activities of the Islamic Fundamentalist Group with President Goodluck Jonathan raising a panel to review the security situation in the country.

The panel may also probe the whereabouts of the N1.8billion released to a former Inspector-General of Police for the installation of CCTV cameras in the Federal Capital Territory (FCT) and some other cities.

The fear of Boko Haram gripped Abuja last night.

There was an unusual presence of heavy security around the headquarters of the Nigerian National Petroleum Corporation (NNPC) following the fear of attack by the group.

Attempts to clartify the cause of the security beef up from corporation spokesman Livi Ajuonuma last night were unsuccessful.

The President has, according to sources, ruled out the removal of Inspector-General of Police Hafiz Ringim, the service chiefs and heads of security agencies over the spate of bombings in the North.

The panel is made up of some former National Security Advisers and some past and present officers from the intelligence service.

Although the list of members was kept secret, it was gathered that the panel will operate “covertly”.

It was also learnt that the panel may exchange information and compare notes with intelligence units of some countries since terrorism is a global issue.

Chairman of Ijere Local government Area, Alhaji Mustapha Baale was yesterday shot dead by gunmen believed to be members of the Boko Haram.

He was killed around 3.30pm on his way home on Old Maiduguri Road within his local government area.

Baale, a three-time chairman of the local government, was reappointed to the post barely three weeks ago by Governor Kashim Shetima. He was also a member of the sixth House of Assembly which ended its tenure last month. He contested for a House of Representatives seat but lost.

Chief of Staff to Governor Shetima, Alhaji Abua Kyari described Baale’s killing as unfortunate.

Barely two hours after the killing of the LGA boss, the Boko Haram men struck again at Wulari Police station Mammy market around 5.30 pm yesterday. They reportedly rained bullets and threw a bomb at the people drinking at the market. Five people lay dead after the attack. Many others were injured.

Sunday’s twin attacks were preceded by the killings on Saturday.

Among those killed in the Saturday attacks were two brothers – Isa Umar and Apagu Umar.

In the Sunday attacks at the Mammy market, a father of 10 was among those shot dead. There was also a retired soldier among the wounded.

Head of the Joint Police Military Task Force in Maiduguri, Maj. Gen. Jack Nwachukwu Nwaogbo confirmed the killings.

A source, who spoke in confidence on the presidential action on Boko Haram said: “Contrary to the insinuations that Mr. President’s approach to the security challenges facing the country has been weak, he has been doing a lot.

“A panel has been set up to review the security situation, what has gone wrong, stock-taking of the level of sophistication to cope with the latest challenges facing Nigeria, and how the system can be overhauled for maximum efficiency.

“The panel is mandated to complete its assignment as soon as possible. So, the team should be done in a few weeks. It comprises some former National Security Advisers, crack intelligence chiefs and other security chiefs.”

The source added: “Following reports coming up on the N1.8billion, the President asked the panel to find out if the money was spent, inspect the installed CCTV cameras in the FCT and other cities and review their impact.

“But if nothing was done, the panel is to find out the whereabouts of the money that was approved and released. The panel will speak with all those involved in the project.

“I think the outcome of investigation into the bomb explosion at the Force Headquarters where it was difficult to get the footage of the bomber might have informed a review of the N1.8billion project by the police.

“After the panel has submitted its report, the President will determine whether the Economic and Financial Crimes Commission should step in or not.”

On the alleged plans to remove Ringim, and service chiefs over the Boko Haram menace, the source added: “The President has ruled out such a step because terrorism is a global challenge and it requires a global reaction.

“Jonathan has said he does not want to play to the gallery through mere grandstanding to remove security chiefs. He believes that recourse to bombing by Boko Haram is a challenge to all Nigerians, including himself as the Commander-In-Chief of the Armed Forces.

“Instead, the President has given these security chiefs a major task to arrest the insurgency and they are on top of the situation.”

… IBB warns Jonathan

TAIWO AMODU, Abuja sunnews
Monday, July 04, 2011

Former military president and Peoples Democratic Party (PDP) presidential aspirant, General Ibrahim Babangida, has condemned the arrest of former Federal Capital Territory minister, Mallam Nasir El-Rufai by security agents.

The former FCT minister, who was arrested by the State Security Services, at the weekend had since been released. 

There were speculations that he would be arraigned in court for sedition, during the week.

But reacting to the arrest of El-Rufai, through his media spokesperson, Kazeem Afegbua, General Babangida advised President Goodluck Jonathan to steer clear of those he called sycophants at the corridors of power.

The former military president noted that freedom of speech, of association, accountability were some of the essential ingredients of democracy.

“The happenings in the country in recent times call for worry if we must be sincere with ourselves. Everyday, the nation is treated with one form of political issue or the other. From security challenges to economic challenges, Nigerians are asking several questions that deserve responses from government at the various levels. That is the beauty of democracy; a people-driven government with its fundamental principles of freedom of expression, freedom of association, rule of law, accountability, probity and equal representation, amongst others.

“It is against this background that I will like to advise President Goodluck Jonathan to tread cautiously so that those sycophants in, and out of, government will not derail his focus. He needs all the comportment, resilience, perseverance, introspection and determination to be able to take the right decisions for the good of the country.

“The arrest and release of Mallam Nasir El-Rufai is a deliberate distraction which the President must run away from. He must avoid gambling with decisions and he must be willing to seek a third opinion on issues before he takes his decision.’’

The PDP presidential aspirant said the only way to ensure that Nigerians gravitate towards his administration and key into his transformation agenda was for President Jonathan to allow all shades of opinions to be ventilated, while not labeling any Nigerian as belonging to the opposition group.

“It is not my tradition to use public platform to pass on my advice to any incumbent president. My choice of this forum is to allow Nigerians the opportunity to appreciate the challenges that President Jonathan is facing in the light of our current economic downturn and security concerns in the country. President Goodluck Jonathan must understand that there is a whole body of people out there who are not happy with happenings in the country. It is his responsibility as the president of the country to reach out to them and make his mission understandable to the common man in the street so that they can buy into his government.

“If his body of advisers do not understand the temperament in the country and decide to embark on arresting and releasing people on very questionable allegations, they will be making enemies for the president instead of friends. The prerogative is that of the president and no one else.

“President Jonathan should, as a matter of responsibility, listen to voices of the opposition and or dissent, as he stands to gain experience and knowledge from their well-informed criticisms rather than build hostilities around them. 

“He has to ensure that he minimizes and maximizes his discretionary powers in a manner that will not be subject of abuse.
“The whole essence of transformative leadership on which platform his campaign was anchored, boils down to how the leader is able to articulate his thoughts, nuances and provoke policy options that would best suit the variables. Transformative leadership is a product of constructive criticism, constructive engagement, collective bargaining and critical self-appraisal of mission statement and pursuit of leadership essentials that would lead to accountability and positive governance.”

“This process also leads to making institutions more workable, proactive, responsive and utility-driven. It is the absence of the essential ingredients and principles of democracy to with rule of law, due process, accountability, probity, equal representation and constitutionality, that nations are described as failed state, particularly when the institutions could no longer withstand the shocks in the system.’’

Appraising the security challenges in recent time, the former military president submitted that the security agencies had not been pro-active while also warning them to stay away from political issues.
“President Goodluck Jonathan must sit back, collect himself and carry out a critical self-appraisal before he takes his decisions. He is aware without mention, that the country is presently faced with several developmental challenges. The nation’s security agencies must avoid getting involved in political issues. Modern day security has evolved to a point where you do not require seeing gun-wielding policemen on the streets. The ability to collate information and analyse same in a proactive manner will help improve the security situation in the country.

“We must carry out moral healing as well as political healing in the land. The president must make it a point of duty to reach out to people, groups and individuals with the purpose of selling his presidency. It is becoming instructive that the concept of winner-takes-all, which had pervaded the system for so long may not flourish as such again. The polity is heated up; minimum wage crisis, arrests, petroleum subsidy debate, crisis over ministerial nominees, Islamic banking, and several other issues.

“Nigerians truly need positive governance, which I think we should work for rather than dissipate energies on frivolous issues that would not lead us anywhere.’’

Okonjo-Iweala, Omobola, Duke, Pepple in last eight

By Yusuf Alli July 4, 2011, the nation 

Barely 48 hours after returning from the African Union (AU) meeting in Equatorial Guinea, President Goodluck Jonathan has closed consultations on his cabinet.

He has sent the names of his last nominees to security agencies for screening before presenting them to the Senate tomorrow.

Besides, there were strong indications yesterday that the return of 12 ministers to their old portfolios is temporary.

The President may reshuffle portfolios after he has fully constituted his cabinet, a source said.

Since the President returned from the AU meeting till early yesterday, he had been holding meetings on the last eight ministerial nominees.

Jonathan had earlier sent a list of 34 to the Senate, leaving out the “controversial” eight.

The battle for the last eight was hot in Kaduna, Ondo, Cross River and Plateau states as well as the four geopolitical zones.

The geopolitical zones are the Southsouth, the Southeast, the Northwest and the Northeast.

Some of the nominees are a former Head of the Civil Service of the Federation, Ms Amal Pepple (Rivers, Southsouth), a former spokesman of the Nigerian National Petroleum Corporation (NNPC), Chief Edem Duke (Cross River), Nurudeen Mohammed (Northwest), a former member of the Presidential Advisory Council, Mrs.  Omobola Johnson (Ondo), ex-Petroleum Techonology Development Fund (PTDF) Executive Secretary Yusuf Hamisu Mai Rago (Kaduna), a Managing Director of the World Bank, Mrs. Ngozi Okonjo-Iweala (Southeast) and Mrs. Sarah Reng Ochepe (Plateau), who is a former Chairperson of the State Universal Basic Education Board (SUBEB).

A Presidency source said: “The pressure was much on the President, but he decided to exercise the prerogative powers conferred on him by the constitution.

“At least, six more names were sent to the State Security Service (SSS) and other agencies by the President on Saturday.

“The last batch of nominees will get to the Senate on Tuesday.”

The President picked the Southsouth nominee from Rivers State, following a strong case made by Governor Rotimi Amaechi.

“By implication, the President has turned down the agitation of the zonal slot for Delta State by Ijaw leader, Chief Edwin Clark,” the source said, adding:

“But, in order not to hurt Chief Clark, the President was also careful in ignoring any of the candidates recommended by the governor. We learnt Amaechi had wanted his Chief of Staff, Nelson Nwike.

“What is important is that Amaechi succeeded in securing Southsouth ticket for Rivers State.”

“According to the source, the Ondo slot went to Mrs. Omobola Johnson, daughter of Chief Bayo Akinnola, who he described as “a committed leader of the PDP since 1999 who has never benefited from the party”.

“The President bowed to the demand of Governor Jonah Jang by approving the nomination of Mrs. Sarah Reng Ochepe (Plateau), who is a former Chairperson of the State Universal Basic Education Board (SUBEB).

“Although Mrs. Sarah is a Berom, like the governor, the choice of the nominee led to the dropping of Dr. Jonah Madugu and ex-Minister Josephine Tapgun, earlier recommended.

“In Kaduna, the godson of the Vice-President, Yusuf Hamisu Mai Rago, is retained as the state’s nominee. But the state lost the battle to take the slot meant for the Northwest, which has gone to Nurudeen Mohammed from Jigawa State.”

Responding to a question, the source added: “The President has plans in his team for ex-Minister of Information Prof. Dora Akunyili, ex-Defence Minister, Prince Adetokunbo Kayode(SAN), ex-Deputy Governor Ada Okwuonu, ex-NDDC Chairman Chief Onyema Ugochukwu, ex-Minister of Women Affairs, Mrs. Josephine Anenih and a former Minister of Foreign Affairs,  Odein Ajumogobia (SAN).

“He will unfold these plans in the next one or two weeks.”

On why the President returned the 12 re-nominated ministers to their portfolios, the presidency source said: “It is temporary”.

“Once the President gets the cabinet in place, he will reshuffle all the portfolios. What he did on Saturday was an interim measure to keep the government machinery running.”

Concerning the jettisoning of a Government of National Unity (GNU) earlier proposed by the President, the source said: “The idea was foreclosed based on legal advice since the Congress for Progressive Change is still pursuing its case before the Presidential Election Petitions Tribunal.

“Counsel to the President advised him to be careful about the GNU matter because the CPC can raise issue at the tribunal on why he opted for GNU if the April presidential poll was free and fair.

“So the Legal advice given to the President was that he should be wary of technicalities that could be raised before the tribunal.”

The National Association of Yoruba Students (NAYOS), Lagos State chapter, yesterday said a former Minister of Finance, Mr. Olusegun Aganga, is a bonafide citizen of the state.

The President of the association, Comrade Adamson Oluwatosin Ayinde, issued a statement, saying: “So, the orchestration that Aganga is not from Lagos can only be a negative move which we know will fail. He is a bonafide Lagosian, there should not be any controversy about this.  

“He has so far done his best for the PDP in Lagos State and we thank Mr. President for nominating him again. We also appeal to the National Assembly to clear him on behalf of the youths in Lagos State. The Yoruba must not be denied the position in the economic team as we lost out in the contest for House of Representatives’ Speaker not too long ago. We want our brothers and sisters to think the way we are doing. This is another opportunity for us which we must embrace.